EUGENE, Ore.--(BUSINESS WIRE)--Summit Bank (OTCBB: SBKO) reported net income for the second quarter of $681 thousand or 31 cents per fully diluted share. Earnings for the comparable period one year ago were $316 thousand or 16 cents per fully diluted share. Year to date earnings for 2014 were $1.1 million or 51 cents per fully diluted share, compared to 21 cents per share for the same period in 2013. Year to date return on average assets and return on average equity were 1.4 percent and 14.9 percent, respectively. Second quarter 2014 earnings were positively impacted by recoveries of previously charged off loans and from the gain on sale of commercial loans that added 3 cents and 6 cents per share respectively to period earnings. Fully diluted earnings per share for the trailing four quarters totaled $1.01.
“The addition of a number of new significant relationships drove our 32 percent increase in top-line revenue,” said Craig Wanichek, the bank’s president and CEO. “Managing the growth of expenses at a much slower rate than revenue, combined with minimal losses, resulted in a 159 percent increase in net income compared to the same period last year.”
The bank continues to experience robust growth in its loan and deposit portfolios. Total net loans as of June 30, 2014, were $131.4 million, representing a 14.4 percent increase over the second quarter 2013 total of $114.8 million. Total demand deposits (excluding time deposits) increased by $25.4 million or 23.0 percent over the previous year. Strong earnings over the last four quarters have allowed Summit to increase its already strong levels of regulatory capital concurrent with the steady asset growth. Total shareholders’ equity at June 30, 2014, was $15.5 million, an increase of 20.2% or $2.6 million over June 30, 2013.
“We are pleased to see continued growth in our loans. This increase represents the strength of our current clients’ businesses and the bank’s obtaining new relationships,” said Wanichek. “The expansion and success of our current and new clients also is reflected in the bank’s growth in deposits.”
The bank continues to hold very low levels of non-performing assets. Loans that are 90 days past due or in non-accrual status plus foreclosed real estate, measured as a percentage of assets, stands at 0.5 percent on June 30, 2014, compared to 1.3 percent one year ago.
Additionally, the bank announced that it would be unveiling mobile deposit capture in the third quarter. “We are excited to be implementing mobile capture which will enable clients to use their phones to take pictures of checks and deposit them directly into their accounts,” said Mike Mercer, senior vice president and chief banking officer. “This technology and our full suite of online banking services put us on par, technology-wise, with banks of any size.”
Headquartered in Eugene at 96 E. Broadway, the bank specializes in providing high-level service to professionals and to medium-sized businesses and their owners. Summit Bank is quoted on the NASDAQ Over-the-Counter Bulletin Board as SBKO.
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SUMMIT BANK |
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QUARTERLY FINANCIAL REPORT – JUNE 2014 |
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| (in thousands except per share data) | Unaudited | Unaudited | ||||||||||
| As of | As of | |||||||||||
| Summary Statements of Condition | Jun. 30, 2014 | Jun. 30, 2013 | ||||||||||
| Cash and short term investments | $ | 23,913 | $ | 12,137 | ||||||||
| Securities | 6,061 | 8,947 | ||||||||||
| Loans: | ||||||||||||
| Commercial | 44,835 | 32,380 | ||||||||||
| Commercial real estate | 71,781 | 66,100 | ||||||||||
| Other | 17,197 | 18,424 | ||||||||||
| Loan loss reserve and unearned income | (2,414 | ) | (2,043 | ) | ||||||||
| Total net loans | 131,400 | 114,862 | ||||||||||
| Property and other assets | 7,090 | 6,823 | ||||||||||
| Repossessed property | 766 | 32 | ||||||||||
| Total assets | $ | 169,229 | $ | 142,801 | ||||||||
| Deposits: | ||||||||||||
| Noninterest-bearing demand | $ | 47,265 | $ | 39,101 | ||||||||
| Interest-bearing demand | 88,637 | 71,408 | ||||||||||
| Certificates of deposit | 13,260 | 14,475 | ||||||||||
| Total deposits | 149,161 | 124,984 | ||||||||||
| Other liabilities | 4,561 | 4,914 | ||||||||||
| Shareholders' equity | 15,507 | 12,903 | ||||||||||
| Total liabilities and shareholders' equity | $ | 169,229 | $ | 142,801 | ||||||||
| Book value per share | $ | 7.21 | $ | 6.28 | ||||||||
| Unaudited | Unaudited | |||||||||||
| For the six | For the six | |||||||||||
| months ending | months ending | |||||||||||
| Summary Statements of Income | Jun. 30, 2014 | Jun. 30, 2013 | ||||||||||
| Interest income | $ | 4,004 | $ | 3,026 | ||||||||
| Interest expense | (122 | ) | (113 | ) | ||||||||
| Net interest income | 3,881 | 2,914 | ||||||||||
| Provision for loan losses | (163 | ) | (495 | ) | ||||||||
| Noninterest income | 427 | 325 | ||||||||||
| Noninterest expense | (2,373 | ) | (2,082 | ) | ||||||||
| Net income before income taxes | 1,772 | 662 | ||||||||||
| Provision for income taxes | (667 | ) | (236 | ) | ||||||||
| Net income | $ | 1,105 | $ | 426 | ||||||||
| Net income per share, basic | $ | 0.52 | $ | 0.21 | ||||||||
| Net income per share, fully diluted | $ | 0.51 | $ | 0.21 | ||||||||
