BEO Bancorp Reports 2009 Profit
26 February 2010 - 10:58AM
Business Wire
BEO Bancorp (OTCBB:BEOB) and its subsidiary, Bank of Eastern
Oregon, announced consolidated 2009 earnings of $387,000. “BEO
Bancorp remains profitable for 2009 despite charging $4.158 million
during the year to income to add to the provision for loan losses
and a $1.275 million charge to account for a decrease in collateral
value in other real estate,” said Chief Financial Officer, Mark
Lemmon. He went on to say, “Our net interest margin is in the upper
echelon of banks in the nation. This is caused by securing low-cost
sources of funding and maintaining a strong liquidity
position.”
“In the current banking environment, showing a profit for 2009
is something that many banks were not able to do. Our core earnings
remain strong and provide a solid base for the bank to build upon,”
according to President and CEO Jeff Bailey. “As has been stated on
numerous occasions, 2009 was a very challenging year for banks in
general, and this was true for Bank of Eastern Oregon. We continue
to make sure our provision for loan losses is funded at an
appropriate level to weather possible prolonged deterioration in
the national and regional economy,” added Bailey.
Chief Operations Officer Gary Propheter said, “Total deposits
ended the year at $204.4 million, up 8.2% year over year. Deposit
growth is indicative of customer trust in the stability of the
bank, and the quality of service and professionalism delivered by
our banking teams. The board of directors and employees take great
pride in the fact that this year marks the 65th year that Bank of
Eastern Oregon has been serving our rural eastern Oregon
communities. Other institutions have come and gone, but we remain
constant and committed to the economic prosperity of eastern
Oregon.”
“Bank of Eastern Oregon has a net interest margin that ranks in
the 98th percentile among our peers,” said Chief Credit Officer, E.
George Koffler. “Total (net) loans are down 4.2% year over year.
This has come about due to economic factors that have temporarily
decreased loan demand in our markets and the structuring of our
balance sheet.” Koffler went on to say, “We are pleased with the
progress we have made during 2009 in managing problem credits.”
“Total assets grew 5.2% year over year to just under $240
million and shareholders’ equity increased 6.1% over the same
period. We are well capitalized by all industry standards and have
a Tier One capital ratio of 9.5%,” said Bailey. “BEO Bancorp
launched a subordinated debt offering late in the 4th quarter which
bolstered our capital levels at the bank. We are pleased with the
results of the debt offering, but still have concerns over the
economic recovery in our trade area along with Oregon as a whole.
National economic indicators tell us things appear to be improving,
but high unemployment levels and low consumer confidence in the
overall economy are still issues, as are concerns in the global
financial markets. The board of directors will continue the safe
and prudent course of building capital through retained earnings
during these uncertain economic times. Therefore, the board of
directors has voted not to pay a cash dividend for fourth 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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