BEO Bancorp Reports 3rd Quarter Earnings
Jeff Bailey, President and CEO (541) 676-0201
Mark Lemmon, EVP & CFO, (541) 676-0201
Heppner, Oregon, (October 15, 2012) BEO Bancorp (OTCBB:BEOB) and its subsidiary, Bank of Eastern Oregon, announced 3rd quarter 2012 consolidated net income of $779,000 or $0.72 per share, compared to $490,000, or $0.53 per share for third quarter 2011. Year to date earnings were $2,006,000, up 49.9% year over year. Total assets were $276.7 million, up 9.9% year over year. Net loans of $219.6 million were up 10.8% from the same period in 2011, while deposits were at $245.2 million, up 10.4% year over year.
“Our profitability trends are strong and we continue to see excellent growth in both deposits and loans,” said President and CEO, Jeff Bailey. “We have seen improvement in our problem loans. Other real estate is starting to move and we are taking steps to clean up our balance sheet.”
Chief Financial Officer, Mark Lemmon said, “Return on Average Assets is 1.14% and Return on Average Equity is 16.03% compared to 1.0% and 14.33%, respectively, year over year.” Lemmon went on to say, “Our shareholder equity is up 15.3% year over year, strong by all measures. Strong core earnings bode well for our equity position.”
Chief Operations Officer, Gary Propheter said, “With the prolonged low interest rate environment, which even the Federal Reserve says will last a while longer, we continue to see strong deposit growth. The growth is coming from all areas of our branch network and we welcome new customers and are sure they will enjoy our brand of banking.”
“Our local agricultural economy continues to perform well. The 2012 harvest was good, commodity prices are holding up well, but we could definitely use some rain,” said Bailey. “The uncertainties of the national and worldwide economy, the political season and additional regulation placed upon community banks are all challenges, but often times with challenges come additional opportunities. Our strong capital and earnings bode well for Bank of Eastern Oregon’s ability to take advantage of the right opportunities over the next few years,” concluded Bailey.
For further information on the company or to access internet banking, please visit our website at HYPERLINK "http://www.beobank.com" http://www.beobank.com.
About BEO Bancorp
BEO Bancorp is the holding company for Bank of Eastern Oregon, which operates 12 branches and four loan production offices in ten eastern Oregon counties. Branches are located in Arlington, Ione, Heppner, Condon, Irrigon, Boardman, Burns, John Day, Prairie City, Fossil, Moro, and Enterprise; loan production offices are located in Hermiston, Ontario, Pendleton, and Island City. Bank of Eastern Oregon also operates a mortgage division and offers brokerage services through BEO Financial Services. The bank’s website is HYPERLINK "http://www.beobank.com" www.beobank.com.
The statements contained in this release that are not historical facts are forward-looking statements based upon management’s current expectations and beliefs concerning future developments and their potential effect on BEO Bancorp. There can be no assurances that future developments affecting BEO Bancorp will be the same as those anticipated by management.
Actual results may differ from those projected in the forward-looking statements. These forward-looking statements involve risks and uncertainties. These risks and uncertainties include, but are not limited to:
Competitive pressures in the banking and financial industries.
Changes in interest rate environment.
General economic conditions, nationally, regionally, and in operating markets.
Changes in regulatory environment.
Changes in business conditions and inflation.
Changes in securities markets.
Future credit loss experience.