BEO Bancorp and its subsidiary, Bank of Eastern Oregon, announced consolidated year end 2018 earnings of $3,949,000, an increase of 27.6 percent when compared to $3,094,000 in 2017.
Average earnings per share were up 28.1 percent at $3.33. Total assets were up 0.5 percent from $414.5 million to $416.6 million. Net loans were up 1.8 percent at $324.6 million, while deposits decreased 0.7 percent year over year to $368.2 million.
“While after-tax income was considerably higher than 2017, pre-tax earnings were down 2.9 percent year over year, due primarily to an increase in loan loss provision and write down of a legacy problem asset,” said President and CEO Jeff Bailey said in a press release. “The December 2017 reduction in corporate tax rates equated to approximately $700,000 for 2018. This coupled with an increasing interest rate environment helped contribute to strong earnings.”
According to Chief Financial Officer Mark Lemmon, “Our book value per share is up 9.5 percent at $29.21 compared to $26.67 one year ago. Shareholder equity is also up 9.0 percent year over year”.
Chief Operations Officer Gary Propheter said the company opened a new loan production office in Dayton, Washington, in 2018 and expanded its deposit-taking ATM network.
Bailey said the company's application with the FDIC to acquire the four Umpqua branches (Colfax, Dayton, LaCrosse and Pomeroy, Washington) has been approved, and the conversion is set for the first weekend in February.
"We look forward to having the employees in those branches join our banking family, and welcome our new customers,” Bailey said.
For more information, visit beobank.com.