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.
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.
Forward-Looking Statements
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.
Copyright Business Wire 2013