Press Release


Summit Bank Reports 3rd Quarter Earnings

Company Release - 10/24/2018 9:00 AM ET

EUGENE, Ore.--(BUSINESS WIRE)-- Summit Bank (OTCBB: SBKO) reported net income for the third quarter of $1.4 million or 27 cents per fully diluted share. Earnings for the quarter were 45 percent, or 9 cents per share higher than the third quarter of 2017, when the Bank earned $955 thousand, or 18 cents per fully diluted share. Year to date earnings for the nine months ended September 30, 2018 were $3.8 million or 72 cents per fully diluted share, compared to $2.7 million or 54 cents during the same period for 2017, an increase of 35 percent. Strong performance in both the Eugene/Springfield and Central Oregon market areas combined with the Bank’s Small Business Administration (SBA) and Equipment Finance Divisions allowed the Bank to achieve its earnings per share growth, while remaining one of Oregon’s fastest growing banks.

“The Bank’s strong support of the communities we serve and close business relationships with new and existing clients, coupled with our tailored, technologically-focused approach to banking, have led to the increase in both lending and deposits,” said Craig Wanichek, President and CEO. He noted a Business Online Banking upgrade as one of the many enhancements in which Summit has invested this year.

Loan and deposit growth continue to be robust. The third quarter is the Bank’s 23rd consecutive quarter of year-over-year loan growth exceeding 14 percent. Total net loans as of September 30, 2018 were $323.2 million, representing a $54.9 million or 20.5 percent increase over the September 30, 2017 total of $268.3 million. Total deposits increased by $57.0 million or 19.2 percent over the same period. Summit’s liquidity and capital positions have remained strong as deposit growth and earnings have supported the Bank’s loan growth. Cash and short term investments increased by $7.1 million or 13.1 percent over the trailing twelve months since September 30, 2017. Over the same period, total shareholders’ equity increased by $4.8 million to $38.4 million, an increase of 14.3 percent.

Summit Bank’s long-term sustained growth has led to completed physical expansions in both locations. Over the last year, the number of Bank colleagues has increased by 20 percent in Eugene and 100 percent in Central Oregon.

“We are fortunate to have hired quality, experienced colleagues in both markets,” said Wanichek. “Together with our existing team, we are laying a strong foundation on which to capitalize on opportunities in our markets.”

The Bank continues to hold very low levels of non-performing assets with total non-performing assets at September 30, 2018 representing just 0.68 percent of total assets, a slight increase from 0.53 percent at September 30, 2017.

Headquartered in Eugene at 96 E. Broadway, the Bank 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 the State of Oregon for SBA Financing. The Bank is designated for the second year in a row as a 100 Best Companies to Work for in Oregon, according to Oregon Business Magazine.

QUARTERLY FINANCIAL REPORT – SEPTEMBER 2018

 
(in thousands except per share data)   Unaudited   Unaudited
As of As of
Summary Statements of Condition Sep. 30, 2018 Sep. 30, 2017
Cash and short term investments $ 54,047 $ 47,437
Securities 7,394 6,898
Loans:
Commercial 105,395 88,208
Commercial real estate 189,658 149,776
Other 34,285 35,182
Loan loss reserve and unearned income   (6,151 )   (4,866 )
Total net loans 323,187 268,300
Property and other assets 11,929 10,916
Repossessed property   1,050     1,258  
Total assets $ 397,607   $ 334,809  
 
Deposits:
Noninterest-bearing demand $ 96,478 $ 85,967
Interest-bearing demand 238,651 188,853
Certificates of deposit   19,739     23,001  
Total deposits 354,868 297,821
Other liabilities 4,316 3,368
Shareholders' equity   38,423     33,620  
Total liabilities and shareholders' equity $ 397,607   $ 334,809  
 
Book value per share $ 7.46 $ 6.67
 
  Unaudited   Unaudited   Unaudited   Unaudited

For the nine
months ending

For the nine
months ending

For the three
months ending

For the three
months ending

Summary Statements of Income Sep. 30, 2018 Sep. 30, 2017 Sep. 30, 2018 Sep. 30, 2017
Interest income $ 15,481 $ 11,899 $ 5,527 $ 4,348
Interest expense   (1,442 )   (468 )   (592 )   (201 )
Net interest income 14,039 11,430 4,935 4,146
Provision for loan losses (1,734 ) (1,768 ) (590 ) (640 )
Noninterest income 1,296 1,056 470 280
Noninterest expense   (8,331 )   (6,332 )   (2,865 )   (2,223 )
Net income before income taxes   5,269     4,386     1,950     1,563  
Provision for income taxes (1,479 ) (1,708 ) (545 ) (608 )
Net income $ 3,790   $ 2,678   $ 1,404   $ 955  
 
Net income per share, basic $ 0.74 $ 0.55 $ 0.27 $ 0.19
Net income per share, fully diluted $ 0.72 $ 0.54 $ 0.27 $ 0.18

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

Source: Summit Bank