BEO Bancorp Reports 2nd Quarter Earnings
Jeff Bailey, President and CEO (541) 676-0201
Mark Lemmon, EVP & CFO, (541) 676-0201
Heppner, Oregon, (July 9, 2013) BEO Bancorp (OTCBB:BEOB) and its subsidiary, Bank of Eastern Oregon, announced 2nd quarter 2013 consolidated net income of $761,000, or $0.72 per share, compared to $552,000, or $0.57 per share for second quarter 2012. Year to date earnings were $1,155,000, down 5.9% year over year. Total assets were $286.9 million, up 6.7% year over year. Net loans of $243.6 million were up 13.3% from the same period in 2012, while deposits were at $252.5 million, up 5.9% year over year.
"Second quarter earnings were very good. Year to date numbers are a little behind last year, but this is attributed to steps taken in first quarter to re-value some other real estate,” said President and CEO, Jeff Bailey. “With our loan to asset ratio at 85% and our loan to deposit ratio at 96.5%, I expect continued good results through our peak borrowing season.”
Chief Financial Officer, Mark Lemmon said, “Return on Average Assets for the quarter was 1.05% and Return on Average Equity is 14.43%, compared to 0.82% and 11.72%, respectively, year over year.” Lemmon went on to say, “Overall increased loan demand coupled with our typical seasonal bulge in ag borrowing are providing a positive trend to earnings. Managed loan growth over 13.0% is phenomenal in this market. With continued strong core earnings and increased loan demand, the bank is well positioned going into the last half of 2013. It is important to note that shareholders’ equity has increased 15.5% year over year. We remain the highest capitalized bank in eastern Oregon.”
Chief Operations Officer, Gary Propheter said, “We continue to see growth in deposits, even in this prolonged low interest rate environment. We are pleased that our market share continues to grow. We appreciate our customers’ confidence in Bank of Eastern Oregon’s safety and soundness and appreciation for our great products and friendly service.”“We continue to see new lending opportunities across our system. The managed growth of both loans and deposits is gratifying. Our rural economies are natural resource based and these sectors have performed fairly well. There are concerns with dry conditions, a smaller wheat crop, and the uncertainties associated with the wheat export markets at this time, but we understand that agriculture is cyclical and do not expect these issues to cause significant problems with the portfolio,” concluded Bailey.
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.