The parent company of Bank of Eastern Oregon earned $387,000 in 2009 on total deposits of $204.4 million.
BEO Bancorp remained profitable despite charging $4.158 million to add to its provision for loan losses and a $1.275 million charge to account for a decrease in collateral value in other real estate.
"In the current banking environment, showing a profit for 2009 is something that many banks were not able to do," CEO Jeff Bailey said.
"As has been stated on numerous occasions, 2009 was a very challenging year for banks in general and this was true for Bank of Eastern Oregon.
"We continue to make sure our provision for loan losses is funded at an appropriate level to weather possible prolonged deterioration in the national and regional economy."
The deposit total was up 8.2 percent over the previous year, while total loans were down 4.2 percent. Total assets grew 5.2 percent to nearly $240 million and shareholders' equity increased 6.1 percent.
"We are well capitalized by all industry standards and have a Tier One capital ratio of 9.5 percent," Bailey said.
The company launched a subordinated debt offering late in the year to bolster capital levels.
"We are pleased with the results of the debt offering, but still have concerns over the economic recovery in our trade area along with Oregon as a whole," Bailey said.
"National economic indicators tell us things appear to be improving, but high unemployment levels and low consumer confidence in the overall economy are still issues, as are concerns in the global financial markets."
Company directors will concentrate on building capital through retained earnings and won't pay a fourth-quarter dividend, the company said.
BEO's Enterprise branch is one of 12 in nine eastern Oregon counties.