BEO Bancorp has Record Quarter and Annual Earnings

  
    
  
  
    
      BEO Bancorp (OTCBB: BEOB), and its subsidiary, Bank of Eastern Oregon, 
      recorded its largest quarterly and annual net income in the history of 
      the organization.
    
    
      
        4Q2007 net income $708,000, an increase of 57.3% year over year.
      
      
        2007 YTD net income $2,325,000, an increase of 58.7% over 2006 YTD 
        net income.
      
      
        Total Asset growth was 12.6%, year end total assets a record 
        $207,636,000.
      
      
        Total Loans increased 23.8% year over year to $148,274,000 at year 
        end 2007.
      
      
        Total Deposits increased 4.7% to year end total deposits of 
        $170,160,000.
      
      
        Earnings per share $2.64 2007 YTD versus earnings per share of 
        $1.66 in 2006.
      
      
        ROAE YTD 22.2%. ROAA YTD 1.19%.
      
    
    
      “We are extremely pleased with the results of 
      the year just concluded,” said President and 
      CEO, E. George Koffler. “The performance was 
      keyed by a management team that continued to find ways to increase 
      revenue and control expenses, a support staff that provides top quality 
      back office results, a credit team that improved loan totals without 
      sacrificing quality, and a veteran, dedicated branch system of employees 
      that consistently provides excellent customer service,” 
      said Koffler.
    
    
      The January issue of US Banker rated BEO Bancorp’s 
      return on equity as 11th highest for all banks 
      nationally and 4th highest in the community bank 
      classification.
    
    
      Financial details and exhibits can be accessed at 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.