Press Release


Summit Bank Reports 1st Quarter Earnings

Company Release - 4/24/2019 9:00 AM ET

EUGENE, Ore.--(BUSINESS WIRE)-- Summit Bank (OTC Pink: SBKO) reported net income for the first quarter of $1.24 million or 24 cents per fully diluted share. Comparable earnings for the first quarter of 2018 were $1.15 million or 22 cents per fully diluted share, representing an increase of 7.3 percent to earnings and 6.6 percent to earnings per fully diluted share. All of Summit’s operating units performed strongly during the quarter which allowed the Bank to achieve solid growth in earnings per share inclusive of first quarter startup investment associated with its new office location in downtown Portland. The earnings impact of the Portland operation was 5 cents per share. Earnings per fully diluted share (EPS) for the trailing four quarters ended March 31st were $1.12 and represented the ninth consecutive quarterly increase in EPS for the Bank.

Summit has been successful in growing its balance sheet concurrent with earnings. Q1 2019 represented the 16th consecutive quarter during which the Bank achieved year over year growth in total net loans of at least 17 percent. Total net loans as of March 31st 2019 were $357.7 million, an increase of $15.6 million for the quarter and an increase of $60.4 million or 20.3 percent over March 31st 2018. Deposit growth continues to be robust as well. Total deposits as of March 31st 2019 were $400.3 million, an increase of $28.9 million or 7.8 percent and $71.6 million or 21.8 percent over December 31st 2018 and March 31st 2018, respectively.

“We are excited to report strong growth in the first quarter in both of our core markets,” said Craig Wanichek, President and CEO. “The reception of the team in Portland has been very positive. Not only did we already experience bookings in Portland in the first quarter, but we established a solid pipeline for loans and deposits.”

The Bank reported $76.9 million of cash & short-term investments in securities as of March 31st 2019. This is a 32.1 percent increase over the $58.2 million held in cash & short-term investments in securities at the end of Q1 2018. The Bank continues to hold very low levels of non-performing assets. Total non-performing assets at March 31st 2019 consisted primarily of one parcel of other real estate owned and represented just 0.4 percent of total assets, a decrease from 0.5 percent at December 31st 2018 and a slight increase from 0.3 percent as of March 31st 2018.

With offices in Eugene and Bend and a loan production office in downtown Portland, 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.

QUARTERLY FINANCIAL REPORT – MARCH 2019

 
(in thousands except per share data)   Unaudited   Unaudited
As of As of
Summary Statements of Condition Mar. 31, 2019 Mar. 31, 2018
Cash and short term investments $ 73,062 $ 51,413
Securities 4,348 7,051
Loans:
Commercial 114,163 94,750
Commercial real estate 209,456 176,236
Other 40,795 31,742
Loan loss reserve and unearned income   (6,699 )   (5,439 )
Total net loans 357,715 297,289
Property and other assets 12,707 12,024
Repossessed property   810     910  
Total assets $ 448,641   $ 368,687  
 
Deposits:
Noninterest-bearing demand $ 86,780 $ 81,721
Interest-bearing demand 277,809 199,774
Certificates of deposit   35,748     47,273  
Total deposits 400,337 328,768
Other liabilities 6,335 4,231
Shareholders' equity   41,969     35,688  
Total liabilities and shareholders' equity $ 448,641   $ 368,687  
 
Book value per share $ 8.13 $ 6.95
 
Unaudited Unaudited

For the three
months ending

For the three
months ending

Summary Statements of Income Mar. 31, 2019 Mar. 31, 2018
Interest income $ 6,146 $ 4,775
Interest expense   (771 )   (329 )
Net interest income 5,375 4,446
Provision for loan losses (570 ) (614 )
Noninterest income 276 415
Noninterest expense   (3,395 )   (2,645 )
Net income before income taxes   1,686     1,602  
Provision for income taxes (450 ) (450 )
Net income $ 1,236   $ 1,152  
 
Net income per share, basic $ 0.24 $ 0.22
Net income per share, fully diluted $ 0.24 $ 0.22

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

Source: Summit Bank