HEPPNER, Ore., Oct 03, 2014 (BUSINESS WIRE) — BEO Bancorp (OTCBB:BEOB) and its subsidiary, Bank of Eastern Oregon, announced today that they have entered into a definitive agreement to acquire Bank Reale (OTCBB:BKRL). The combined banking operation will have about 120 employees with total assets of nearly $350 million.
Jeff Bailey, President and CEO for Bank of Eastern Oregon, referred to the common philosophies shared by BEO and Bank Reale: “Our goal is to expand upon and execute the original vision of Bank Reale’s founders: To provide unequaled customer service and serve the banking needs of the local Pasco community as well as the outlying rural areas of the Columbia Basin. Bank of Eastern Oregon has served rural eastern Oregon for nearly 70 years and we are excited to expand our footprint and bring our style of banking to the region. Bank Reale has a talented group of employees that we look forward to bringing into our banking family.”
Bank of Eastern Oregon, based in Heppner, Oregon, was founded in 1945 as Gilliam County Bank in Arlington, Oregon. Since that time, the bank has expanded to 12 branches and five loan production offices located in 11 eastern Oregon counties. The bank was founded by farmers and ranchers and views agricultural lending as key to its historical, as well as future, success.
Fred Zack, Interim President and CFO for Bank Reale, said, “Both institutions have similar cultures and philosophies when it comes to customer service and to the employees who make great customer service happen. The consolidation of Bank Reale into Bank of Eastern Oregon is a natural fit for both in other ways as well. We will now have access to their financial resources and added services for our existing and future customers, and they now have a platform for long-term growth in the Tri-Cities and the Columbia Basin in harmony with their core belief in supporting the communities and customers they serve.”
“The banking world has seen significant changes over the past five years in terms of consolidation and economies of scale. The acquisition of Bank Reale provides Bank of Eastern Oregon an excellent access to Pasco and rural southeastern Washington,” said Bailey.
The transaction is expected to close during first quarter 2015, following approval by Bank Reale shareholders and final regulatory approval. The terms of the transaction are not being disclosed but involve a combination of cash and stock. Upon closing of the acquisition, the Pasco facility will operate as a branch of Bank of Eastern Oregon, doing business as Bank of Eastern Washington. Commerce Street Capital, L.L.C., and LC Financial Advisors, L.L.C., served as financial advisors to Bank of Eastern Oregon. McAdams Wright Ragen, Inc. served as financial advisor to Bank Reale.
About BEO Bancorp
BEO Bancorp is the holding company for Bank of Eastern Oregon, which operates 12 branches and five loan production offices in 11 eastern Oregon counties. Branches are located in Arlington, Ione, Heppner, Condon, Irrigon, Boardman, Burns, John Day, Prairie City, Fossil, Moro, and Enterprise; loan production offices are located in Hermiston, Ontario, Island City, Pendleton, and Lakeview. Bank of Eastern Oregon also operates a mortgage division. The bank’s website is www.beobank.com.