BEO Bancorp : 2022 First Quarter Earnings

BEO Bancorp

PO Box 39

NEWS RELEASE

Heppner, OR 97836

BEO Bancorp Reports 1ST Quarter Earnings

CONTACT:

Jeff Bailey, President and CEO [phone]

Mark Lemmon, EVP & CFO, [phone]

Heppner, Oregon, (April 22, 2022) BEO Bancorp (OTCBB:BEOB) and its subsidiary, Bank of Eastern Oregon, announced 1st quarter 2022 consolidated net income of $808,000 or $0.67 per share, compared to $1,337,000 or $1.11 per share for first quarter 2021. Total assets were $831.8 million, up 17.4% year over year. Net loans of $470.4 million were down 7.5% from the same period in 2021, while deposits were at $766.1 million up 17.7% year over year.

"In comparing first quarter of 2022 to 2021, we notice the nonrecurring effects that economic stimulus money had in 2021. We also note the continued growth in deposits that are attributable to stimulus payments, SBA programs, as well as increased market share in various branches and loan production offices," said President and CEO Jeff Bailey.

Chief Financial Officer Mark Lemmon said, "Banking in general continues to see an extreme amount of liquidity, as evident by our continued growth in deposits. Shareholder equity is up 12.5% over the past year; Return on Average Assets and Return on Average Equity are 0.39% and 6.79% respectively."

Chief Operations Officer Becky Kindle said, "It is good to see the easing of pandemic related mandates. Our staff and customers are enjoying the return to more normal interactions."

"Asset quality has fared well even with drought concerns of the past year. Renewal season for our ag portfolio showed minimal concerns," said Chief Credit Officer Ed Rollins.

Chief Lending Officer John Qualls added, "Recent snow and rain across our trade area is welcomed. The weather has definitely delayed spring field work, but the moisture and strong commodity prices make us optimistic for the coming ag cycle."

"Global unrest, as well as the Federal Reserve's attempts to contain inflation, and its effect on interest rates will give us all plenty to watch and consider in the quarters ahead," concluded Bailey.

BEO Bancorp

PO Box 39

NEWS RELEASE

Heppner, OR 97836

For further information on the Company or to access internet banking, please visit our website athttp://www.beobank.com.

About BEO Bancorp

BEO Bancorp is the holding company for Bank of Eastern Oregon. It operates 20 branches and four loan production offices in 11 eastern Oregon and four eastern Washington counties, and one western Idaho county. Branches are located in Arlington, Ione, Heppner, Condon, Irrigon, Boardman, Burns, John Day, Prairie City, Fossil, Moro, Enterprise, Athena, Hermiston, and La Grande, OR; and Colfax, Dayton, LaCrosse, Pasco, and Pomeroy WA; loan production offices are located in Ontario, Pendleton, and Madras, OR, and Caldwell, ID. Bank of Eastern Oregon also operates a mortgage division and operates the Washington locations under the name of Bank of Eastern Washington. The bank's website iswww.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.