HEPPNER — BEO Bancorp and its subsidiary, Bank of Eastern Oregon, announced third-quarter 2019 consolidated net income of $1,229,000 or $1.04 per share, compared with $1,196,000 or $1.01 per share for third quarter 2018.
Year-to-date earnings were $2,973,000, up 5.2% year over year, according to a press release. Total assets were up 20.4% year over year at $483.3 million.
Net loans of $401.5 million were up 24% from the same period in 2018, while deposits were at $432.6 million, up 21.6% year over year.
“The expansion projects announced earlier in the year are translating into significant growth in deposits, loans and assets,” said President and CEO Jeff Bailey. “The expansion has resulted in additional overhead costs, but these costs are now translating into increased revenue. Earnings for the quarter are up 2.76% year over year. Year-to-date results show a 5.2% increase from 2018.”
Chief Financial Officer Mark Lemmon said, “Our shareholder equity is up 9% year over year, while our book value per share is up 9.3%. Return on average assets for the quarter was 1.03% and return on average equity was 13.28% compared to 1.19% and 14.12% respectively year over year.”
Chief Operations Officer Gary Propheter said there has been a tremendous reception from the new communities in Southeast Washington, and the expanded locations in Hermiston, La Grande and Pendleton have also exceeded expectations.
“We look forward to expanding our market share across our footprint in years to come,” he said.
Bailey said the 2019 wheat harvest was at least average in most of the trade area and better than average in many regions. Cattle producers are reporting good weight gains on their calves as they come off of summer grazing, he said.
“All of these factors bode well for producers, but the volatility of input costs and commodity prices brought about by global and political pressures have swayed the commodity markets and provide an extra level of angst for our producers,” Bailey said.
“On the bright side, decent soil moisture has provided better fall seeding conditions than we have seen for a number of years.”