BEO Bancorp Declares Two for One Stock Split

  
    
  
  
    
      BEO Bancorp (OTCBB:BEOB) today announced that its Board of 
      Directors declared a two for one stock split in the form of a 100% stock 
      dividend. The shares will be distributed on August 20, 2007, to 
      shareholders of record as of August 19, 2007. Shareholders will receive 
      one additional share of common stock for every share currently owned. 
      BEO Bancorp has 440,329 shares outstanding and will have 880,658 shares 
      outstanding after the stock split.
    
    
      “We are intent on building shareholder value. 
      This move will seek to improve the liquidity of the stock and increase 
      our franchise value,” said E. George Koffler, 
      President and CEO of BEO Bancorp and its subsidiary, Bank of Eastern 
      Oregon. “We continue to post good results and 
      are pleased to share our good fortune with the loyal group of 
      shareholders we have,” said Koffler.
    
    
      Late in July, BEO Bancorp reported net income increased 73% year over 
      year for the first half of 2007 to $1,039,000 and earning per share 
      improved for the same period from $.81 per share to $1.32 per share. The 
      loan portfolio grew 9.9% year over year and total assets grew 7.3% to 
      $196,252,000.
    
    
      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; loan production offices are located in Hermiston, Ontario, and 
      Enterprise. Bank of Eastern Oregon also operates a mortgage division and 
      offers brokerage services through BEO Financial Services. Bank of 
      Eastern Oregon’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; and (7) 
      future credit loss experience.