BEO Bancorp YTD Earnings up 16.3%

  
    
  
  
    
      Bank of Eastern Oregon and its parent company, BEO Bancorp 
      (OTCBB:BEOB), reports earnings year to date of $1,208,000 
      through June 30, 2008. This is a 16.3% increase over YTD 2007 earnings 
      of $1,039,000. These positive results come because of continued loan 
      growth, up 25.4% year over year for total loans of $164,747,000, and 
      despite reserving $340,000 for loan losses during the first half of the 
      year. Earnings for the second quarter of 2008 were down slightly at 2.1% 
      because of this strong reserve stance.
    
    
      Total assets grew 11.6% to $219,098,000 and total deposits increased 
      3.3% to $174,413,000, compared to 6/30/07 totals.
    
    
      “We are pleased to again report a year-to-date 
      increase in earnings despite a challenging banking landscape,” 
      said President and CEO, E. George Koffler. “The 
      Board of Directors is taking a positive and pro-active approach to 
      building loan loss reserves during this time of strong earnings, but 
      economic times test the quality and strength of our loan portfolio,” 
      Koffler concluded.
    
    
      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, 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.