EUGENE, Ore.--(BUSINESS WIRE)--Summit Bank (OTCBB:SBKO) reported net income for the third quarter of $705 thousand or 30 cents per fully diluted share. Earnings for the comparable period one year ago were $621 thousand or 28 cents per fully diluted share. Year to date earnings were $2.09 million or 92 cents per fully diluted share, representing a 16.2 percent increase over the 79 cents per share that the Bank earned during the first nine months of 2014. Year to date non-interest income increased from $765 thousand in 2014 to $1.13 million in 2015, which, combined with continued solid loan growth, strong and 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 $1.26.
The Bank continues to experience significant growth in its loan and deposit portfolios. Total net loans as of September 30, 2015, were $179.1 million, representing a 30.4 percent increase over the third quarter 2014 total of $137.4 million. Total deposits increased by $53.7 million or 34.7 percent over the previous year. Solid earnings over the last four quarters combined with new capital resulting from the Bank’s 2015 common stock offering have allowed Summit to increase its already strong levels of regulatory capital. Total shareholders’ equity at September 30, 2015, was $20.6 million, an increase of 27.0 percent over Summit’s September 30, 2014 total of $16.2 million.
“We are very pleased with the growth of the Bank as well as our increased profitability, especially during the same quarter we made a significant investment to open our Central Oregon office in Bend,” said Craig Wanichek, president and CEO. “The reception of Summit Bank by the communities and businesses in the Bend area has been wonderful. Our Central Oregon office is fully staffed and we are making good inroads into the market.”
“The Bank’s loan growth is noteworthy and reflects the expanding business activity of our clients,” said Wanichek. “The success of our clients together with our local, relationship-based service model has resulted in significant deposit growth.”
The Bank recently closed its 2015 Common Stock Offering on October 16th after successfully raising $2.0 million. New equity from the offering consisted of investments from both existing and new investors in both of Summit’s Eugene/Springfield and Central Oregon market areas.
The Bank continues to hold very low levels of non-performing assets. Total non-performing assets at September 30, 2015, consisted primarily of one parcel of other real estate owned and represented just 0.4 percent of total assets, down slightly from 0.5 percent at September 30 2014.
Summit Bank with offices in Eugene and Bend, specializes in providing high-level service to professionals and medium-sized businesses and their owners. Summit Bank is quoted on the NASDAQ Over-the-Counter Bulletin Board as SBKO.
QUARTERLY FINANCIAL REPORT – SEPTEMBER 2015
|(in thousands except per share data)||Unaudited||Unaudited|
|As of||As of|
|Summary Statements of Condition||Sep. 30, 2015||Sep. 30, 2014|
|Cash and short term investments||$||37,329||$||23,855|
|Commercial real estate||102,264||74,886|
|Loan loss reserve and unearned income||(3,303||)||
|Total net loans||179,173||137,419|
|Property and other assets||9,673||6,843|
|Certificates of deposit||11,385||13,527|
|Total liabilities and shareholders' equity||$||234,007||$||175,077|
|Book value per share||$||8.95||$||7.47|
|For the nine months ending||For the nine months ending|
|Summary Statements of Income||Sep. 30, 2015||Sep. 30, 2014|
|Net interest income||7,516||6,029|
|Provision for loan losses||(682||)||(319||)|
|Net income before income taxes||3,363||2,762|
|Provision for income taxes||(1,269||)||(1,034||)|
|Net income per share, basic||$||0.94||$||0.81|
|Net income per share, fully diluted||$||0.92||$||0.79|