Summit Bank Reports 3rd Quarter Earnings

EUGENE, Ore.--()--Summit Bank (OTC Pink: SBKO) reported net income for the third quarter of $2.06 million or 35 cents fully diluted share. Earnings for the comparable period one year ago were $1.65 million or 32 cents per fully diluted share. Year to date earnings were $4.44 million or 79 cents per fully diluted share, compared to $4.24 million or 81 cents that the Bank earned during the first nine months of 2019. The solid earnings for the third quarter were achieved despite increased provision for future loan losses resulting from the ongoing impact of the COVID-19 pandemic. “We are pleased with the Bank’s growth over the summer given the economic conditions associated with the pandemic that our community and nation are facing,” said Craig Wanichek, CEO and President. “As an Oregon-based business bank, we continued to grow this quarter because of our close relationships and consistent communication with both longtime and new clients.”

Earnings per fully diluted share (EPS) for the trailing four quarters ended September 30th were $1.05 compared to $1.19 for the four quarter period ended September 30th 2019. The Bank completed a successful capital offering in the second quarter of 2020 which increased average total shares outstanding for the year to date by 7.7 percent which was the primary driver of the lower earnings per share relative to the previous year. Net interest income for the nine month period exceeded the similar period last year by $2.7 million, an increase of 15.5 percent as the Bank’s core operations remain robust despite the challenging economic environment. “We’d like to acknowledge the bank’s dedicated staff,” said Wanichek. “As we continue to navigate through this pandemic, our team comes into the office every day to provide our clients with the best service and client experience possible. Thank you to Summit Bank’s dedicated colleagues for continuing to work hard on behalf of our clients.”

Summit’s balance sheet remains significantly expanded at the end of the third quarter as all $119 million of the Bank’s Small Business Administration’s Paycheck Protection Program (PPP) loans, which we originated to help our clients mitigate the impact of the COVID-19 pandemic, remain outstanding. Earlier this year, Summit Bank announced that it was able to help 440 small businesses and nonprofits across Oregon under the U.S. Small Business Administration (SBA) Paycheck Protection Program (PPP).

Most recently, Summit Bank committed to donating $150,000 of its CARES Act PPP SBA loan income to make microloans to underserved members of the community in all three of its markets including minority-owned businesses, women-owned businesses, service-disabled veteran-owned businesses and emerging small businesses, particularly those operating in low income areas of the state. The bank will partner with Community LendingWorks, a Community Development Financial Institution (CDFI) based in Springfield, Oregon to help underwrite, disburse and service the loans.

Summit has continued to achieve strong loan growth over the year to date and the last twelve months with total net loans (excluding PPP loans) increasing by $64.4 million or 15.4 percent since September 30th 2019 and by $44.6 million or 10.2 percent during the first nine months of 2020. The Bank’s deposit base continues to grow as well with $38.5 million or 6.6 percent growth achieved during the third quarter and $186.3 million or 42.3 percent over the last twelve months.

The Bank continues to hold extremely high levels of available liquidity during this period of uncertainty with $142.7 million of cash & short-term investments in securities as of September 30th 2020. This is more than twice the total of $67.5 million in similar assets held at September 30th 2019. Non-performing assets have increased somewhat during the quarter with total non-performing assets at September 30th 2020 representing just 0.95 percent of total assets, an increase from 0.23 percent as September 30th 2019.

Summit Bank is also pleased to report that our shareholders voted on and approved the formation of Summit Bank Group, Inc., a bank holding company. All regulatory information and documentation for the Holding Company has been approved, making Summit Bank a wholly owned subsidiary of Summit Bank Group, Inc. As a result, effective immediately, Summit Bank shareholders became 100% owners of the holding company.

With offices in Eugene, Bend and 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.

QUARTERLY FINANCIAL REPORT – SEPTEMBER 2020

(in thousands except per share data) Unaudited Unaudited
As of As of
Summary Statements of Condition Sep. 30, 2020 Sep. 30, 2019
Cash and short term investments

$

130,266

 

$

61,389

 

Securities

 

12,478

 

 

6,071

 

Loans:
Commercial

 

249,055

 

 

127,264

 

Commercial real estate

 

321,577

 

 

261,592

 

Other

 

42,613

 

 

36,337

 

Loan loss reserve and unearned income

 

(12,237

)

 

(7,604

)

Total net loans

 

601,009

 

 

417,590

 

Property and other assets

 

14,712

 

 

13,308

 

Repossessed property

 

259

 

 

304

 

Total assets

$

758,725

 

$

498,661

 

 
Deposits:
Noninterest-bearing demand

$

165,527

 

$

91,702

 

Interest-bearing demand

 

434,133

 

 

300,446

 

Certificates of deposit

 

26,802

 

 

47,978

 

Total deposits

 

626,462

 

 

440,126

 

Other liabilities

 

72,711

 

 

13,167

 

Shareholders' equity

 

59,552

 

 

45,368

 

Total liabilities and shareholders' equity

$

758,725

 

$

498,661

 

 
Book value per share

$

9.92

 

$

8.74

 

 
Unaudited Unaudited Unaudited Unaudited
For the nine
months ending
For the nine
months ending
For the three
months ending
For the three
months ending
Summary Statements of Income Sep. 30, 2020 Sep. 30, 2019 Sep. 30, 2020 Sep. 30, 2019
Interest income

$

20,960

 

$

19,651

 

$

20,959

 

$

6,925

 

Interest expense

 

(1,115

)

 

(2,462

)

 

(274

)

 

(819

)

Net interest income

 

19,845

 

 

17,189

 

 

6,746

 

 

6,106

 

Provision for loan losses

 

(3,281

)

 

(2,137

)

 

(782

)

 

(602

)

Noninterest income

 

864

 

 

1,537

 

 

400

 

 

428

 

Noninterest expense

 

(11,478

)

 

(10,744

)

 

(3,676

)

 

(3,649

)

Net income before income taxes

 

5,950

 

 

5,845

 

 

2,688

 

 

2,283

 

Provision for income taxes

 

(1,506

)

 

(1,604

)

 

(629

)

 

(631

)

Net income

$

4,444

 

$

4,241

 

$

2,060

 

$

1,652

 

 
Net income per share, basic

$

0.79

 

$

0.82

 

$

0.36

 

$

0.32

 

Net income per share, fully diluted

$

0.79

 

$

0.81

 

$

0.35

 

$

0.32

 

 

Contacts

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

Contacts

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