Press Release


Summit Bank Reports 2nd Quarter Earnings

Company Release - 7/17/2019 9:00 AM ET

EUGENE, Ore.--(BUSINESS WIRE)-- Summit Bank (OTC Pink: SBKO) reported net income for the second quarter of $1.35 million or 26 cents per fully diluted share. Earnings for the comparable period one year ago were $1.24 million or 24 cents per fully diluted share. Year to date earnings were $2.59 million or 50 cents per fully diluted share, compared to $2.39 million or 46 cents that the Bank earned during the first six months of 2018, representing an increase of eight percent.

Craig Wanichek, President and Chief Executive Officer, stated, “We are very encouraged by our ability to grow earnings while simultaneously making a significant investment in our Portland operations. We are experiencing strong acceptance of our relationship-focused style of business banking in the Portland Metro area, and the Bank’s pipeline for loan and deposit activity is strong.” The FDIC this week issued approval for Summit to open a full service branch office, which is scheduled to open on the second floor of the KOIN Center in downtown Portland on August 5.

Summit continues to achieve robust balance sheet growth with total loans and total deposits increasing by 24 percent and 20 percent respectively over the trailing 12 month period. The second quarter of 2019 represented the 17th 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 June 30, 2019, were $389.7 million, representing a $75.7 million increase over the second quarter 2018 total of $314.0 million. Total deposits increased by $67.3 million over the same period. The Bank continues to achieve strong earnings which has supported its balance sheet growth. Total shareholders’ equity at June 30, 2019, was $43.6 million, a $6.6 million or 17.9 percent increase over Summit’s June 30, 2018 total of $37.0 million. “This quarter, Summit Bank brought on several new significant deposit-centered clients,” said Wanichek. “The Bank’s Small Business Administration division also positively impacted the Bank’s non-interest income.”

The Bank continues to hold very low levels of non-performing assets. Total non-performing assets at June 30, 2019 represented just 0.28 percent of total assets, a decrease from 0.69 percent at June 30, 2018.

Also notable for Summit Bank this quarter is the Oregon Bankers Association (OBA), Oregon’s only trade association dedicated to the banking industry and its clients, elected Wanichek Chair of the Association at its annual summer meeting. Wanichek will hold the position until June of 2020.

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. Summit Bank was recognized earlier this year as one of the top 200 Community Banks in America by the American Banking Association. The Bank was also honored as one of the Top 100 Green Companies in Oregon, according to Oregon Business Magazine.

QUARTERLY FINANCIAL REPORT – JUNE 2019

(in thousands except per share data) Unaudited Unaudited
As of As of
Summary Statements of Condition Jun. 30, 2019 Jun. 30, 2018
Cash and short term investments

$

53,099

 

$

48,761

 

Securities

 

5,391

 

 

7,351

 

Loans:
Commercial

 

119,353

 

 

104,080

 

Commercial real estate

 

236,787

 

 

179,628

 

Other

 

40,905

 

 

36,076

 

Loan loss reserve and unearned income

 

(7,330

)

 

(5,762

)

Total net loans

 

389,714

 

 

314,022

 

Property and other assets

 

13,188

 

 

11,515

 

Repossessed property

 

435

 

 

858

 

Total assets

$

461,827

 

$

382,506

 

 
Deposits:
Noninterest-bearing demand

$

84,418

 

$

91,033

 

Interest-bearing demand

 

294,640

 

 

211,321

 

Certificates of deposit

 

29,891

 

 

39,292

 

Total deposits

 

408,950

 

 

341,646

 

Other liabilities

 

9,306

 

 

3,911

 

Shareholders' equity

 

43,572

 

 

36,950

 

Total liabilities and shareholders' equity

$

461,827

 

$

382,506

 

 
Book value per share

$

8.39

 

$

7.18

 

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, 2019 Jun. 30, 2018 Jun. 30, 2019 Jun. 30, 2018
Interest income

$

12,726

 

$

9,954

 

$

6,580

 

$

5,179

 

Interest expense

 

(1,643

)

 

(850

)

 

(872

)

 

(521

)

Net interest income

 

11,083

 

 

9,104

 

 

5,708

 

 

4,658

 

Provision for loan losses

 

(1,535

)

 

(1,144

)

 

(965

)

 

(529

)

Noninterest income

 

1,109

 

 

826

 

 

833

 

 

411

 

Noninterest expense

 

(7,095

)

 

(5,465

)

 

(3,700

)

 

(2,820

)

Net income before income taxes

 

3,563

 

 

3,322

 

 

1,876

 

 

1,720

 

Provision for income taxes

 

(973

)

 

(934

)

 

(523

)

 

(484

)

Net income

$

2,591

 

$

2,388

 

$

1,353

 

$

1,236

 

 
Net income per share, basic

$

0.50

 

$

0.47

 

$

0.26

 

$

0.24

 

Net income per share, fully diluted

$

0.50

 

$

0.46

 

$

0.26

 

$

0.24

 

 

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

Source: Summit Bank