Jeff Bailey, president of the Bank of Eastern Oregon, senses businesses in northeast Oregon are in a bit of a holding pattern ahead of the national election.
He said business customers he talks to are “more concerned” about what the election will bring than they are about interest rates.
With the presidency and control of Congress uncertain, there is little certainty about federal legislation that affects taxes, regulation and the all-important Farm Bill.
“Businesses are trying to hope for the best and prepare for the worst,” Bailey said in an interview.
His remarks came after the Heppner-based bank announced its quarterly financial results, showing increased profits over the year before. Loan activity is up 8.4% from last year for net loans of $557.2 million, but deposits are down 2.7% compared to a year ago at $741.8 million, the bank announced.
Bank earnings for the year are up 7.5%, Bailey said. The bank has a loan office in Ontario.
He said increased loan business comes in part from a new branch in Caldwell, Idaho. Most of the bank’s lending is for business and agriculture.
A loan operation in Pendleton proved so successful the bank is scheduled to open a full-service branch there in December.
Bailey has been with the bank since 1986 and became president in 2008 and CEO a year later.
Bailey said he expects the economy in the region to tighten a bit in the coming six months to a year.
The region’s cattle industry remains strong, with ranchers getting high prices for their beef. Bailey said ranchers are still rebuilding herds from sharp reductions that developed during the pandemic.
“You can’t just turn the spigot on,” he said.
With limited supply of cattle moving to market, prices are high with bred cows bringing “crazy” prices, Bailey said.
The impact on ranchers of the massive range fires this summer isn’t clear yet, he said.
He said ranchers in Grant, Harney and Malheur counties are still assessing their losses. Ranchers tend to take a “we’ll get through it” approach, he said.
The Bank of Eastern Oregon intends to work with these ranchers, Bailey said.
“I can’t imagine a scenario where we’re going to pull the rug out from somebody impacted by the fires,” Bailey said. “We’re in it for the long haul.”
Hay prices generally have been down after spiking two years ago, he said. He said farmers put in more hay to take advantage of that earlier demand. He said a mild winter in 2023 has left producers with a carryover supply.
The impact of the range fires on hay prices and supply isn’t clear but “that’s going to cause some concerns,” Bailey said.
He said the bank is noticing grain prices are down as global demand slows. Yields in the Pacific Northwest have been strong, he said, with the supply adding to the downward pressure on prices.
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