BEO Bancorp and its subsidiary, Bank of Eastern Oregon, announced first quarter 2019 consolidated net income of $1,094,000 or $0.92 per share, compared to $758,000 or $0.64 per share for first quarter 2018. Total assets were $468.2 million, up 19.9 percent year over year. Net loans of $340.1 million were up 8.7 percent from the same period in 2018, while deposits were at $421.6 million, up 20.6 percent year over year.
“There were a few non-ordinary events that occurred during the quarter,” said President and CEO Jeff Bailey in a press release. “The purchase of the four former-Umpqua branches in Washington was completed, and expenses associated with that transaction hit the books. This was offset by a substantial recovery of a troubled asset. The bottom line is that firstst quarter was a very good start to 2019 from a net income standpoint.”
Chief Financial Officer Mark Lemmon said shareholder equity is up 9.7 percent over the past year.
“The interest rate environment has been interesting,” he said. “While the U.S. economy seems to be doing relatively well, the world economy raises some concerns. The Federal Reserve has gone from an expectation of continued rate increases in 2019 to a wait and see approach. Deferred rates have dropped dramatically over the past few months.”
Chief Operations Officer Gary Propheter said, even without the bump in deposits associated with the new branches, which amounted to approximately $40 million, organic growth would have been just over 8 percent year over year. Loans purchased with the branch relationships amounted to about $3 million, so organic growth in loans was also up about 8.5 percent, he said.
“The late spring snows in much of our trade area delayed spring field work, but the moisture is welcomed,” Bailey said. “This, coupled with a better renewal season for our ag customers than we have seen for the past few years, makes me cautiously optimistic about our ag areas for 2019.”
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