BEO Bancorp Declares Quarterly Cash Dividend

  
    
  
  
    
      BEO Bancorp (OTCBB:BEOB), parent company of Bank of Eastern 
      Oregon, today announced that its Board of Directors declared a 
      quarterly cash dividend of $0.15 per share payable on or before October 
      15, 2008, to shareholders of record as of September 30, 2008.
    
    
      “We continue to deliver solid earnings to 
      stockholders during these troubling times in all financial markets,” 
      said CEO, E. George Koffler. “In addition to 
      taking a conservative approach to credit granting, we’ve 
      ramped up credit monitoring and oversight, especially in credits with an 
      underlying real estate component. This added caution is reflected in the 
      general increases to the Loan Loss Reserve, which accounts for loan 
      portfolio growth, identified problem credits, and potential general 
      market weaknesses. Our reserve for losses stands at 1.40%, a 
      historically large number for us, while our year to date earnings 
      continue to keep pace with last year’s 
      historic success,” concluded Koffler.
    
    
      This is the 23rd year in a row the company has 
      paid cash dividends. The board will continue to review its dividend 
      policy. Cash dividends, when and if declared, will typically be paid in 
      April, July, October, and January. Decisions on future dividends will 
      consider a wide range of indicators, including operating results, 
      retained earnings, capital, and general market conditions.
    
    
      For further information on the company or to access internet banking, 
      please visit our website at http://www.beobank.com.
    
    
      About BEO Bancorp
    
    
      BEO Bancorp is the holding company for Bank of Eastern Oregon, which 
      operates 11 branches and three loan production offices in nine eastern 
      Oregon counties. Branches are located in Arlington, Ione, Heppner, 
      Condon, Irrigon, Boardman, Burns, John Day, Prairie City, Fossil and 
      Moro. The bank also received approval for a branch in Enterprise, 
      Oregon, opening in October. Loan production offices are located in 
      Hermiston, Enterprise, and Ontario. Bank of Eastern Oregon also operates 
      a mortgage division and offers brokerage services through BEO Financial 
      Services. The bank’s website is www.beobank.com.
    
    
      Forward-Looking Statements
    
    
      The statements contained in this release that are not historical facts 
      are forward-looking statements based upon management’s 
      current expectations and beliefs concerning future developments and 
      their potential effect on BEO Bancorp. There can be no assurances that 
      future developments affecting BEO Bancorp will be the same as those 
      anticipated by management.
    
    
      Actual results may differ from those projected in the forward-looking 
      statements. These forward-looking statements involve risks and 
      uncertainties. These risks and uncertainties include, but are not 
      limited to:
    
    
      (1) Competitive pressures in the banking and financial industries.
    
    
      (2) Changes in interest rate environment.
    
    
      (3) General economic conditions, nationally, regionally, and in 
      operating markets.
    
    
      (4) Changes in regulatory environment.
    
    
      (5) Changes in business conditions and inflation.
    
    
      (6) Changes in securities markets.
    
    
      (7) Future credit loss experience.