Press Release


Summit Bank Reports 2nd Quarter Earnings

Company Release - 7/19/2017 9:00 AM ET

EUGENE, Ore.--(BUSINESS WIRE)-- Summit Bank (OTCBB: SBKO) reported net income for the second quarter of $960 thousand or 23 cents per fully diluted share. Earnings for the comparable period one year ago were $684 thousand or 19 cents per fully diluted share. Year to date earnings were $1.7 million or 44 cents per fully diluted share, compared to $1.3 million or 35 cents that the Bank earned during the first six months of 2016. Profitable growth across all of the Bank’s operating units, particularly the Central Oregon office in Bend, drove the increase in earnings. The Bank was able to achieve a 24% increase in earnings per share during the first six months of the fiscal year over the similar period last year after adding $9.5 million in additional equity during the previous 12 months. The equity was a result of an increase in retained earnings and a successful March 2017 capital offering. Return on assets through the second quarter was 1.19% and return on equity was 11.64%.

“Strong year-over-year results from our Central Oregon Office significantly impacted our performance,” said Craig Wanichek, president and CEO. “The acceptance of our community banking model in Central Oregon has been very encouraging. As a result of the growth, the Board of Directors has approved an expansion of our current office in Bend.”

The Bank continues to experience significant growth in its loan and deposit portfolios. Total net loans as of June 30, 2017, were $255.1 million, representing a $49.0 million or 23.8% increase over the second quarter 2016 total of $206.1 million. Total deposits increased by $44.9 million or 19.3% over the previous year. Solid earnings over the last four quarters combined with new capital resulting from the Bank’s aforementioned common stock offering have allowed Summit to increase its already strong levels of regulatory capital. Total shareholders’ equity at June 30, 2017, was $32.6 million, an increase of 40.7% over Summit’s June 30, 2016, total of $23.2 million.

“The success of our clients and the addition of new relationships led to the significant deposit growth,” said Wanichek. “We were pleased to be able to increase rates for our depositors in June, for both earnings credit on business deposits as well as money market and checking accounts.”

The Bank continues to hold very low levels of non-performing assets. Total non-performing assets at June 30, 2017, represented just 0.75% of total assets, an increase from 0.63% at June 30, 2016.

With offices in Eugene and Bend, Summit Bank is a business bank that specializes in providing high-level service to professionals and medium-sized businesses and their owners. Summit Bank is quoted on the NASDAQ Over-the-Counter Bulletin Board as SBKO. Summit is the number one community bank lender in Oregon for SBA Financing. Summit Bank was designated this year as a 100 Best Company to Work for in Oregon, according to Oregon Business Magazine.

     

QUARTERLY FINANCIAL REPORT – JUNE 2017

 
(in thousands except per share data) Unaudited Unaudited
As of As of
Summary Statements of Condition Jun. 30, 2017 Jun. 30, 2016
Cash and short term investments $ 39,965 $ 39,159
Securities 6,548 6,100
Loans:
Commercial 86,395 64,023
Commercial real estate 134,588 121,263
Other 38,818 24,516
Loan loss reserve and unearned income   (4,716 )   (3,688 )
Total net loans 255,085 206,114
Property and other assets 11,193 10,021
Repossessed property   1,125     1,048  
Total assets $ 313,917   $ 262,442  
 
Deposits:
Noninterest-bearing demand $ 80,650 $ 68,640
Interest-bearing demand 173,805 131,427
Certificates of deposit   23,241     32,745  
Total deposits 277,696 232,812
Other liabilities 3,576 6,433
Shareholders' equity   32,646     23,198  
Total liabilities and shareholders' equity $ 313,917   $ 262,442  
 
Book value per share $ 8.10 $ 6.58
 
             
Unaudited Unaudited Unaudited Unaudited

For the six months
ending

For the six months
ending

For the three
months ending

For the three
months ending

Summary Statements of Income Jun. 30, 2017 Jun. 30, 2016 Jun. 30, 2017 Jun. 30, 2016
Interest income $ 7,551 $ 6,051 $ 3,966 $ 3,141
Interest expense   (267 )   (203 )   (138 )   (107 )
Net interest income 7,284 5,848 3,828 3,035
Provision for loan losses (1,128 ) (713 ) (574 ) (442 )
Noninterest income 776 444 385 288
Noninterest expense   (4,109 )   (3,585 )   (2,059 )   (1,782 )
Net income before income taxes   2,823     1,995     1,579     1,099  
Provision for income taxes (1,100 ) (730 ) (618 ) (414 )
Net income $ 1,723   $ 1,265   $ 960   $ 684  
 
Net income per share, basic $ 0.45 $ 0.36 $ 0.24 $ 0.19
Net income per share, fully diluted $ 0.44 $ 0.35 $ 0.23 $ 0.19

Summit Bank
Craig Wanichek, 541-684-7500
President & Chief Executive Officer

Source: Summit Bank