BEO Bancorp Reports Strong 2012 Earnings
Feb 5th 2013 7:50PM
Updated Feb 5th 2013 9:00PM
BEO Bancorp Reports Strong 2012 Earnings
HEPPNER, Ore.--(BUSINESS WIRE)-- BEO Bancorp (OTCBB:BEOB) and its subsidiary, Bank of Eastern Oregon, announced consolidated year end 2012 earnings of $2,462,000, an increase of 22.4% when compared to $2,012,000 in 2011. Basic earnings per share increased 17% from $2.18 in 2011 to $2.55 in 2012. Total assets increased 9.4% from $260.4 million to $284.8 million. Net loans ended 2012 at $224.8 million, up 12.4% year over year. Deposits increased 9.8% from $230.3 million to$252.9 million.
"We are very pleased with the 2012 results. This is the best year the bank has ever had from a net income perspective. The regional agricultural economy has fared quite well over the past few years. Even with ever-increasing input costs, good production and strong prices for wheat, hay, and cattle continue to bode well for our producers. While a strong local ag sector dramatically helps our local businesses, the national economy and global economic factors continue to cause some concern for all segments of our markets," said President & CEO, Jeff Bailey.
"Total shareholders' equity increased 12.0% year over year to $19.667 million. Our Tier 1 capital ratio of 10.13% matches up favorably to our peer banks across the nation and continues to make us the highest capitalized bank in eastern Oregon," said Chief Financial Officer, Mark Lemmon. "Return on Average Assets is 0.90% and Return on Average Equity is 13.23% compared to 0.79% and 12.12%, respectively, year over year."
Chief Operations Officer, Gary Propheter, said, "Year over year deposit growth is substantial, especially when you consider the prolonged low interest rate environment we are experiencing. The overall support from our local communities is impressive. The continued trend of growth in core deposits tells us our customers are happy with Bank of Eastern Oregon's style of banking, our flexible products, and the excellent, professional service provided by our banking teams."
"We have seen good loan opportunities across our branch and loan production office system. We continue to welcome new customers and help existing customers with their additional loan needs. Our new LPO's in Island City and Pendleton have opened up new market opportunities for us and we see great potential in those locations," continued Bailey. "When we look at provision for loan losses and expenses associated with other real estate, the 2012 expense numbers are down 27.1% from 2011. We continue to take aggressive steps in dealing with problem assets. Other real estate owned is down 41.4% from 2011."
"2012 was a very good year for Bank of Eastern Oregon. We were able to build upon the success of 2011. Our success is directly attributable to our excellent team of employees and the support of loyal shareholders and customers," 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.
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.
Jeff Bailey, President and CEO, 541-676-0201
Mark Lemmon, EVP & CFO, 541-676-0201
KEYWORDS: United States North America Oregon
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