HEPPNER — BEO Bancorp and its subsidiary, Bank of Eastern Oregon, announced net income for the second quarter of 2019 was down, but attributed that to the acquisition and startup costs of Washington branches, a new loan production office in Hermiston and expansion of its Pendleton and Island City loan production offices.
“While the (second quarter 2019) results are down from last year, year-to-date results are up 7.1% when compared to this time last year,” said Jeff Bailey, president and CEO.
BEO also reported total assets were $469.9 million, up 17.4% year over year. Net loans of $383.9 million were up 16.5% from the same period in 2018, while deposits were at $421.9 million, up 18.5% year over year. Shareholders’ equity increased by $3.127 million or 9.4% from June 2018.
Chief financial officer Mark Lemmon said while the world economy continues to show signs of weakness, the U.S. economic recovery is the longest on record.
“Unemployment is at record lows and most domestic economic numbers point to continued strength,” Lemmon said.
In addition, Lemmon said the bank’s book value per share was $30.83 compared with $28.07 on June 30, 2018, an increase of 9.8%.
Gary Propheter, chief operations officer, said BEO’s expansion into Washington and its loan production offices have yielded strong growth in deposits and loans. Bank officials, he said, are pleased with the reception they are receiving in their newest locations.
The ag sector in the Pacific Northwest, Bailey said, seems to be doing pretty well. With harvest just beginning across the trade area, Bailey said early results are encouraging for their small grain producers. In addition, he said grass conditions in the mountains are good for summer feed and cattle prices are stable.
“All of these factors bode well for our local economy, but there are the ongoing concerns about the impact of tariffs and the global economic factors that could pose additional challenges,” Bailey said.
Based in Heppner, BEO operates 18 branches and seven loan production offices across Eastern Oregon and eastern Washington.
For more information, visit www.beobank.com.