BEO Bancorp Reports 1ST Quarter Earnings
Jeff Bailey, President and CEO (541) 676-0201
Mark Lemmon, EVP & CFO (541) 676-0201
Heppner, Oregon, (April 17, 2013) BEO Bancorp (OTCBB:BEOB) and its subsidiary, Bank of Eastern Oregon, announced first quarter 2013 consolidated net income of $404,000 or $0.42 per share, compared to $675,000 or $0.71 per share for first quarter 2012. Total assets were $293.8 million, up 9.6% year over year. Net loans of $222.2 million were up 11.0% from the same period in 2012 while deposits were at $261.9 million, up 9.9% year over year.
“While less than 2012 first quarter results, our core earnings are strong. We took prudent steps in reducing our non-performing assets. Other real estate owned is down over 50% from last year. The non-recurring expense of $352,000 during 1st quarter helps to clean up our balance sheet,” said President and CEO, Jeff Bailey.
Chief Financial Officer, Mark Lemmon said, “Net interest income after provision for loan losses is up 13.7% from last year. This, coupled with increased loan demand, should help offset compression in our net interest margin. Return on Average Assets is 0.56% and Return on Average Equity is 8.12% compared to 1.02% and 14.93%, respectively, year over year.” Lemmon went on to say, “Reasonable profits helped contribute to shareholders’ equity increasing 8.2% year over year. We remain the most well-capitalized bank in eastern Oregon.”
Chief Operations Officer, Gary Propheter said, “The prolonged low interest rate environment is a frustration to depositors and bankers alike. In spite of the low rates, we continue to see strong growth trends in deposits. Customer confidence in the safety and soundness of Bank of Eastern Oregon is gratifying and serves to reinforce the confidence we have in our employees to deliver products and services that meet the needs of our growing customer base.”
“We are pleased with the ongoing good performance in our ag loan portfolio. After a number of years of decent production and prices, we realize that ag markets are cyclical and we will take prudent steps to make sure our loan loss reserve is adequately funded to stave off a possible downturn in the ag economy. We have taken steps to bring our problem assets to a more manageable level. Our hope is that our local natural resource based economy will continue its strength and the national and global economy continues to improve,” concluded Bailey.
For further information on the company or to access internet banking, please visit our website at 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 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:
(1) Competitive pressures in the banking and financial industries.
(2) Changes in interest rate environment.
(3) General economic conditions, nationally, regionally, and in operating markets.
(4) Changes in regulatory environment.
(5) Changes in business conditions and inflation.
(6) Changes in securities markets.
(7) Future credit loss experience.