Press Release


Summit Bank Reports 2nd Quarter Earnings

Company Release - 7/19/2018 9:00 AM ET

EUGENE, Ore.--(BUSINESS WIRE)-- Summit Bank (OTCBB: SBKO) reported net income for the second quarter of $1.24 million, up 29 percent compared to earnings for the comparable period one year ago of $960 thousand. The Bank reported earnings of 24 cents per fully diluted share for the quarter compared to 19 cents per fully diluted share last year. Year to date earnings were $2.39 million or 46 cents per fully diluted share, compared to $1.72 million or 35 cents that the Bank earned during the first six months of 2017, representing an increase of 30 percent.

“Strong loan growth, over 23 percent year-over-year, with existing and new clients drove the increase in earnings,” said Summit Bank CEO and president Craig Wanichek. “In addition, Summit has been able to increase our depositor’s rates consistently over the past year, while maintaining net interest margin and successfully funding the growth in loans.”

Summit has achieved balanced growth in its loan and deposit portfolios over the last twelve months, with total loans and total deposits both increasing by 23 percent. Total net loans as of June 30, 2018, were $314.0 million, representing a $58.9 million increase over the second quarter 2017 total of $255.1 million. Total deposits increased by $64.0 million over the same period. The Bank continues to achieve strong earnings that support its balance sheet growth. Total shareholders’ equity at June 30, 2018, was $37.0 million, a $4.3 million or 13.2 percent increase over Summit’s June 30, 2017, total of $32.6 million.

“The Bank continues to be in a safe, sound and liquid position,” said Wanichek. “At the end of the quarter, the Bank held over $56 million in cash and securities. We were also awarded 5-Stars from Bauer Financial, the nation’s leading independent bank rating firm, which recognized Summit as one of the strongest financial institutions in the Country. Bauer measures banks safety and soundness on a five star scale.”

Earlier this month, Summit was also recognized as one of the Top Community Bank Commercial Lenders in the Country by the Independent Community Bankers Association (ICBA). The Bank was featured in the July issue of Independent Banker, which focuses on top community bank loan producers in the commercial, agricultural and consumer categories by asset size.

The Bank continues to hold very low levels of non-performing assets. Total non-performing assets at June 30, 2018, represented just 0.69 percent of total assets, an increase from 0.47 percent at June 30, 2017.

With offices in Eugene and Bend, Summit Bank is a community 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 for the second year in a row as a 100 Best Company to Work for in Oregon, according to Oregon Business Magazine.

     

QUARTERLY FINANCIAL REPORT – JUNE 2018

 
(in thousands except per share data) Unaudited Unaudited
As of As of
Summary Statements of Condition Jun. 30, 2018 Jun. 30, 2017
Cash and short term investments $ 48,761 $ 39,965
Securities 7,351 6,548
Loans:
Commercial 104,080 86,395
Commercial real estate 179,628 134,588
Other 36,076 38,818
Loan loss reserve and unearned income   (5,762 )   (4,716 )
Total net loans 314,022 255,085
Property and other assets 11,515 11,193
Repossessed property   858     1,125  
Total assets $ 382,506   $ 313,917  
 
Deposits:
Noninterest-bearing demand $ 91,033 $ 80,650
Interest-bearing demand 211,321 173,805
Certificates of deposit   39,292     23,241  
Total deposits 341,646 277,696
Other liabilities 3,911 3,576
Shareholders' equity   36,950     32,646  
Total liabilities and shareholders' equity $ 382,506   $ 313,917  
 
Book value per share $ 7.18 $ 6.48
             
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, 2018 Jun. 30, 2017 Jun. 30, 2018 Jun. 30, 2017
Interest income $ 9,954 $ 7,551 $ 5,179 $ 3,966
Interest expense   (850 )   (267 )   (521 )   (138 )
Net interest income 9,104 7,284 4,658 3,828
Provision for loan losses (1,144 ) (1,128 ) (529 ) (574 )
Noninterest income 826 776 411 385
Noninterest expense   (5,467 )   (4,109 )   (2,820 )   (2,059 )
Net income before income taxes   3,320     2,823     1,720     1,579  
Provision for income taxes (934 ) (1,100 ) (484 ) (618 )
Net income $ 2,386   $ 1,723   $ 1,236   $ 960  
 
Net income per share, basic $ 0.47 $ 0.36 $ 0.24 $ 0.19
Net income per share, fully diluted $ 0.46 $ 0.35 $ 0.24 $ 0.19

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

Source: Summit Bank