Summit Bank Reports 2nd Quarter Earnings and Stock Offering Update

EUGENE, Ore.--()--Summit Bank (OTCBB:SBKO) reported net income for the second quarter of $820 thousand or 36 cents per fully diluted share. Earnings for the comparable period one year ago were $681 thousand or 31 cents per fully diluted share. Year to date earnings were $1.39 million or 62 cents per fully diluted share, representing a 21.6 percent increase over the 51 cents per share that the Bank earned during the first six months of 2014. Year to date non-interest income increased from $427 thousand in 2014 to $707 thousand in 2015, which combined with continued solid loan growth, stable net interest margins, and managed growth of non-interest expenses allowed Summit to achieve its earnings per share increase. Fully diluted earnings per share for the trailing four quarters totaled $1.24.

“We are pleased to be able to help our clients as they continue to grow their businesses,” said Craig Wanichek, president and CEO. “With the expansion of existing client relationships as well as the addition of new clients to the Bank, we were able to attain our 10th consecutive quarter of double digit growth.”

Total net loans as of June 30, 2015, were $160.5 million, representing a 22.1 percent increase over the second quarter 2014 total of $131.4 million. Total deposits increased by $26.9 million or 18.0 percent over the previous year. Solid earnings over the last four quarters combined with new capital resulting from the Bank’s current common stock offering have allowed Summit to increase its already strong levels of regulatory capital. Total shareholders’ equity at June 30, 2015, was $19.0 million, an increase of 22.4% over Summit’s June 30, 2014, total of $15.5 million.

Summit Bank reported it continues to receive additional indications of investor interest for its recently announced stock offering. The Board of Directors has decided to extend the offering in order to allow it to continue the offering process, particularly in the Central Oregon market. Accordingly, the offering will continue until 5:00 p.m. local time on October 16, 2015, or until fully subscribed.

“The stock offering has been well received by investors in both of our market areas,” said Scott Goldstein, Summit Bank chief financial officer, “with subscriptions and commitments for $1.4 million of the offering target of $2 million received thus far.”

The Bank reported the Central Oregon office progress has been ahead of plan. “We are excited about the amount of relationships we have already established in Central Oregon,” said Gary O’Connell, Central Oregon Market president. “Our team is encouraged by the demand of Central Oregon businesses for our local, community-based approach to banking.”

The Bank continues to hold very low levels of non-performing assets. Total non-performing assets at June 30, 2015, consisted primarily of one parcel of other real estate owned and represented just 0.4 percent of total assets, down slightly from 0.5 percent at June 30 2014.

Headquartered in Eugene at 96 E. Broadway, with an office at 560 SW Columbia Street, in Bend, Oregon, 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 – JUNE 2015

 
(in thousands except per share data) Unaudited Unaudited
As of As of
Summary Statements of Condition Jun. 30, 2015 Jun. 30, 2014
Cash and short term investments $ 22,195 $ 23,913
Securities 6,367 6,061
Loans:
Commercial 57,481 44,835
Commercial real estate 87,879 71,781
Other 18,174 17,197
Loan loss reserve and unearned income   (3,039 )   (2,414 )
Total net loans 160,495 131,400
Property and other assets 9,332 7,090
Repossessed property   724     766  
Total assets $ 199,113   $ 169,229  
 
Deposits:
Noninterest-bearing demand $ 52,202 $ 47,265
Interest-bearing demand 103,788 88,637
Certificates of deposit   20,088     13,260  
Total deposits 176,077 149,161
Other liabilities 4,048 4,561
Shareholders' equity   18,987     15,507  
Total liabilities and shareholders' equity $ 199,113   $ 169,229  
 
Book value per share $ 8.48 $ 7.21
 
Unaudited Unaudited
For the six months ending For the six months ending
Summary Statements of Income Jun. 30, 2015 Jun. 30, 2014
Interest income $ 4,954 $ 4,004
Interest expense   (140 )   (122 )
Net interest income 4,815 3,881
Provision for loan losses (377 ) (163 )
Noninterest income 707 427
Noninterest expense   (2,916 )   (2,373 )
Net income before income taxes   2,229     1,772  
Provision for income taxes (840 ) (667 )
Net income $ 1,388   $ 1,105  
 
Net income per share, basic $ 0.63 $ 0.52
Net income per share, fully diluted $ 0.62 $ 0.51

Contacts

Summit Bank
Craig Wanichek, 541-684-7500
President & Chief Executive Officer
www.summitbankonline.com

Contacts

Summit Bank
Craig Wanichek, 541-684-7500
President & Chief Executive Officer
www.summitbankonline.com