BEO Bancorp Maintains Profitability in 2009
24 October 2009 - 4:27AM
Business Wire
BEO Bancorp (OTCBB:BEOB) and its subsidiary, Bank of Eastern
Oregon, announced consolidated year to date earnings of $437,000.
“BEO Bancorp remains profitable for 2009 despite charging $2.7
million year to date to income to buttress the allowance for
potential loan losses along with a $1.034 million charge to account
for a decrease in collateral value in other real estate,” said
Chief Financial Officer Mark Lemmon.
“Total assets grew 3.5% year over year to just over $230
million; net loans increased 3.5% year over year to $179 million;
and shareholders’ equity increased 12.2% over the same period,”
according to President and CEO Jeff Bailey. “The third quarter
itself was a challenging quarter. Our strong core earnings allowed
us to take some aggressive steps to address potential future
charges to the loan loss reserve as well as writing down other real
estate. The total charge to income for the quarter was $3.172
million. These unusual charges to income along with our bank’s
share of the FDIC special assessment, which amounts to $234,000,
contributed to a third quarter loss of $306,000, or $0.34 per share
at the Bancorp,” added Bailey.
“Our deposit base continues to grow within our market area and
regularly exceeds $200 million,” said COO Gary Propheter. “Total
deposits ended the quarter at $197.8 million, up 10.9% from third
quarter 2008. The strength and professionalism of our branch teams
allows us to continue building trust with our customers and
continue our long-held commitment to our rural eastern Oregon
communities,” continued Propheter.
“The Board of Directors continues to aggressively address
challenges to the loan portfolio brought on by the global recession
and regional economic factors. We continue to make sure the
provision for loan loss is funded at an appropriate level to
address potential future loan losses,” said President and CEO Jeff
Bailey. “Our core earnings remain strong and we are pleased to show
a profit year to date 2009,” added Bailey.
Bailey went on to say “The Board of Directors will continue the
safe and prudent course of building capital and aggressively
addressing problem credits. While we read that the national economy
is growing and recovering from the global recession, the banking
industry continues to work through the effects of the past two
years. National, and more critically, local unemployment levels in
the counties we serve will continue to hamper regional economic
recovery. I expect during the balance of 2009 and into 2010
challenges in our market will crop up. Turbulent economic times
call for conservative approaches to how the bank is run and a huge
part of this conservative tone is to grow capital. In light of
this, the board of directors has voted not to pay a cash dividend
for third quarter 2009.”
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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