BEO Bancorp Reports 2nd Quarter Earnings
July 14 2011 - 2:12PM
Business Wire
BEO Bancorp (OTCBB:BEOB) and its subsidiary, Bank of Eastern
Oregon, announced 2nd quarter 2011 consolidated net income of
$325,000 or $0.35 per share, compared to $459,000 or $0.50 per
share for 2nd quarter 2010. Year to date earnings were $827,000 in
2011 as compared to $903,000 for the same period in 2010. The
relatively comparable earnings were achieved despite a $545,000
provision for loan losses recognized in the second quarter of 2011,
an expectedly non-recurring charge related primarily to an
individual credit. Total assets were $251.6 million virtually
unchanged year over year. Net loans of $199.59 million were up 6.4%
from the same period in 2010, while deposits were at $222.6
million, up 2.1% year over year.
“We continue to take aggressive steps in writing down problem
assets when necessary. The $545,000 provision is not indicative of
overall weakness in the portfolio, but rather a lingering effect of
an already identified problem credit,” said president and CEO, Jeff
Bailey.
Chief Financial Officer, Mark Lemmon, said “Shareholders’ equity
is up 7.6% year over year as a result of continued profitability
and prudent capital management. Year to date Return on Average
Assets is 0.66% and Return on Average Equity is 10.26%. The bank’s
capital ratios, a key regulatory barometer of a bank’s overall
health, are even stronger now than before the economic downturn.”
Lemmon went on to say, “Increased loans and deposits bode well for
our strong net interest margin, which dictates overall
profitability.”
Chief Operations Officer, Gary Propheter, said “We are pleased
with our continued deposit growth in the face of the prolonged,
depressed interest rate cycle. We believe this reflects customer
confidence in the stability and financial strength of Bank of
Eastern Oregon, the best capitalized bank in eastern Oregon.”
“Quarter end past due loans were minimal and we have seen
progress in moving some of the non-performing assets off of our
books,” said EVP and Chief Credit Officer, E. George Koffler. “We
see continued strength in our agricultural loan portfolio. The cool
and wet spring has set the stage for a very productive grain
harvest. Cattle prices continue to be strong and summer grazing
conditions are some of the best that I can remember,” added
Koffler.
“We have noticed increased loan demand across our system. Our
agricultural loans are at an all time high and overall loan
portfolio quality continues to improve. The hard work of our
employees and the continued support of our shareholders and
customers are greatly appreciated. Our expectation is that these
factors will continue to add value to our shareholders and the
communities we serve,” 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 two loan production offices in nine
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 and Ontario. 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.
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