Bank of EO second quarter earnings up 13.1% from 2023

HEPPNER, OR - BEO Bancorp (OTCBB:BEOB) and its subsidiary, Bank of Eastern Oregon, announced second quarter 2024 consolidated net income of $3,755,000 or $3.06 per share. Total assets were $852.3 million; Net loans of $563.3 million; Deposits were at $754.7 million. Shareholder equity was at $71.76 million.

"Second quarter earnings are up 13.1% compared to the same period in 2023; earnings per share increased 10.9%. Total assets increased 3.9%; deposits up 1.7%; net loans were up 11.5%," said President and CEO Jeff Bailey.

EVP and Chief Financial Officer Mark Lemmon said, "Second quarter earnings track favorably compared to previous quarter with a 6.4% increase. Year to date results are up 9.8% year over year. Our annualized Return on Average Equity is 21.66% for the quarter and 21.44% YTD, while Return on Average Assets is 1.76% and 1.70% respectively. Shareholder equity at $71.76 million is up 29.5% year over year."

EVP and Chief Credit Officer Ed Rollins said, "We are approaching the time of year where loan volume historically peaks. Ag lines are borrowing up. Overall credit quality remains good. The $450,000 added to provision for possible loan losses is volume related. Overall credit quality is holding up nicely."

Chief Operations Officer and EVP Becky Kindle said, "The increase in deposits compared to last year comes from our newer markets, along with a few traditional markets where national banks have closed branches."

"Harvest time is here. Spring rains and cooler temperatures helped crops as well as mountain grass conditions. Cattle prices remain strong, while hay and grain prices have weakened," said John Qualls, EVP and Chief Lending Officer.

Bailey concluded by saying, "The market, as well as customers, await interest rate movement by the Federal Reserve. They appear to be continuing their data dependent approach. They have not yet achieved their goal of 2.0% inflation. We are also in a presidential election year, which adds another level of complication to the Fed's task. I do not envy their position."

In other news, the Bank of EO also announced that it had been named one of the country's top agricultural lenders in 2024 by the Independent Community Bankers Association (ICBA).

BEO ranks 18th on the list of community banks with $300 million to $1 billion in assets and is the only Pacific Northwest Bank based agricultural lender on this list. The article in Independent Banker magazine includes photos of BEO personnel visiting Painted Hills Natural Beef in Fossil, Oregon; a customer who has been with BEO for over 15 years. "Community institutions like the Bank of Eastern Oregon are in the agricultural space for the long haul," said Jeff Bailey, President and Chief Executive Officer of BEO. "Agricultural lending isn't just a sideline opportunity that we're going to get in and out of. In fact, the community bank takes its responsibility to support rural communities-of which agriculture is a large part very seriously. It's not just a line of business; it is our business," Bailey added.