Summit Bank Reports 1st Quarter Earnings

EUGENE, Ore.--()--Summit Bank (OTCBB:SBKO) reported net income for the first quarter of $424,000 or 39 cents per fully diluted share. Earnings for the comparable period one year ago were $109,000 or 11 cents per fully diluted share. First quarter 2014 net interest income of $1.9 million represents a 38.4 percent improvement over first quarter 2013 net interest income of $1.4 million. First quarter earnings last year were adversely impacted 9 cents per share by a loan charge-off. Fully diluted earnings per share for the trailing four quarters totaled $1.65.

The Bank continues to experience significant growth in its loan and deposit portfolios. Total net loans as of March 31, 2014, were $126.8 million, representing an 18.6 percent increase over the first quarter 2013 total of $106.9 million. Total demand deposits (excluding time deposits) increased by $32.1 million or 28.8 percent over the previous year. Solid earnings over the last four quarters have allowed Summit to increase its already strong levels of regulatory capital. Total shareholders’ equity at March 31, 2014, was $14.7 million, an increase of 18.8% over $12.4 million as of March 31, 2013.

“We are pleased with our continued growth in loans and deposits,” said Craig Wanichek, president and chief executive officer. “Our consistent progress has been a reflection of the growth and success of our clients as well as the development of new relationships within the market. While our growth has continued to rank us among the top of our peers, we have strategically utilized our current structure to increase our earnings.”

The Bank continues to hold very low levels of non-performing assets. Total non-performing assets at March 31, 2014, consist primarily of one parcel of other real estate owned and represented just 0.5% of total assets, down slightly from 0.6% at December 31, 2013.

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.

QUARTERLY FINANCIAL REPORT – MARCH 2014

     
(in thousands except per share data) Unaudited Unaudited
As of As of
Summary Statements of Condition Mar. 31, 2014 Mar. 31, 2013
Cash and short term investments $ 26,399 $ 16,362
Securities 6,622 11,412
Loans:
Commercial 43,065 27,614
Commercial real estate 68,745 62,499
Other 17,335 18,617
Loan loss reserve and unearned income  

(2,348

)   (1,834 )
Total net loans 126,797 106,895
Property and other assets 6,871 6,853
Repossessed property   799     251  
Total assets $ 167,488   $ 141,773  
 
Deposits:
Noninterest-bearing demand $ 49,657 $ 36,542
Interest-bearing demand 94,083 75,082
Certificates of deposit   2,657     12,034  
Total deposits 146,397 123,658
Other liabilities 6,367 5,724
Shareholders' equity   14,724     12,391  
Total liabilities and shareholders' equity $ 167,488   $ 141,773  
 
Book value per share $ 13.79 $ 12.41
 
Unaudited Unaudited

For the three

months ending

For the three

months ending

Summary Statements of Income Mar. 31, 2014 Mar. 31, 2013
Interest income $ 1,934 $ 1,409
Interest expense   (62 )   (56 )
Net interest income 1,872 1,353
Provision for loan losses (169 ) (283 )
Noninterest income 136 140
Noninterest expense   (1,155 )   (1,047 )
Net income before income taxes   684     162  
Provision for income taxes (260 ) (53 )
Net income $ 424   $ 109  
 
Net income per share, basic $ 0.40 $ 0.11
Net income per share, fully diluted $ 0.39 $ 0.11

Contacts

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

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Contacts

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