Summit Bank Reports 2020 and 4th Quarter Earnings

EUGENE, Ore.--(BUSINESS WIRE)--Summit Bank (OTC Pink: SBKO):

• 2020 Net Income - $7.93 million, up 41.3 percent from 5.62 million in 2019.
• $1.38 per fully diluted share, up 29.1 percent from 1.07 in 2019.
• 2020 Net Loan Growth - $76.5 million or 17.5 percent (excluding PPP loans).
• PPP loans made during Q2 2020 - $119 million of which $61 million remain outstanding at FYE.
• 2020 Deposit Growth - $206 million or 45.6 percent over FYE 2019.

We were pleased to originate $119 million in emergency Paycheck Protection Program (PPP) loans to assist clients in mitigating the effects of the COVID-19 pandemic in our Eugene/Springfield, Central Oregon and Portland Metropolitan market areas. These loans helped businesses and nonprofit entities hire back or retain thousands of Oregon employees. The Bank also saw a strong year over year improvement in the results and operations of all our teams including the Portland Metropolitan office, which opened in 2019.

“This year, we are tremendously proud to have worked closely alongside our clients, including 440 small businesses and nonprofits across Oregon under the U.S. Small Business Administration’s (SBA) Paycheck Protection Program,” said President and CEO Craig Wanichek. “This symbiotic relationship enabled thousands of Oregonians in the areas we serve to remain employed during the COVID-19 pandemic this year. We’ve had the opportunity to partner with many new clients as well and are humbled by the confidence our communities and clients have in Summit Bank.”

Summit achieved its eighth consecutive year of annual loan growth in excess of 20 percent during 2020. Total net loans (inclusive of PPP loans) as of December 31, 2020, were $572.6 million, representing a 30.9 percent increase over the fiscal 2019 total of $437.5 million. Deposit growth was particularly high during the year, with total deposits increasing by $205.7 million or 45.6 percent over the previous year. The Bank has maintained consistent profitability concurrent with its rapid growth during 2020. Summit also completed a successful capital offering during the year ($7.9 million) while achieving a return on average equity for the year of 14.3 percent. The 2020 fiscal year marked Summit’s eighth consecutive year producing a return on equity in excess of 10 percent.

Summit’s capital offering combined with strong retained earnings have added significant strength to the Bank’s capital position, with total shareholders’ equity increasing by $16.3 million to $63.1 million, an increase of 34.8 percent. Liquidity remains very strong with cash and short term investments as of fiscal year end 2020 at $160.9 million or 28.1 percent of total net loans.

The Bank continues to hold very low levels of non-performing assets with total non-performing assets at December 31, 2020 representing just 0.26 percent of total assets, down from 0.90 percent as of September 30, 2020, and a slight increase from 0.18 percent as of December 31, 2019.

Summit Bank, with offices in Eugene/Springfield, Central Oregon and the Portland Metropolitan area, specializes in providing high-level service to professionals and medium-sized businesses and their owners. Summit was recognized in 2020 as the Top Small Business Administration (SBA) Community Bank Lender in the State of Oregon. Summit Bank is quoted on the NASDAQ Over-the-Counter Bulletin Board as SBKO.

QUARTERLY FINANCIAL REPORT – DECEMBER 2020

(in thousands except per share data)	Unaudited			Unaudited
	As of			As of
Summary Statements of Condition	Dec. 31, 2020			Dec. 31, 2019
Cash and short term investments	$	160,851		$	48,373
Securities		12,979			6,795
Loans:
Commercial		202,183			131,977
Commercial real estate		329,674			272,600
Other		51,352			40,827
Loan loss reserve and unearned income		(10,602	)		(7,956	)
Total net loans		572,607			437,449
Property and other assets		14,575			14,457
Repossessed property		124			314
Total assets	$	761,136		$	507,388
Deposits:
Noninterest-bearing demand	$	162,696		$	91,982
Interest-bearing demand		470,618			312,365
Certificates of deposit		23,823			47,119
Total deposits		657,136			451,467
Other liabilities		40,866			9,086
Shareholders' equity		63,134			46,835
Total liabilities and shareholders' equity	$	761,136		$	507,388
Book value per share	$	10.48		$	9.02

	Unaudited			Unaudited			Unaudited			Unaudited
	For the twelve months ending			For the twelve months ending			For the three months ending			For the three months ending
Summary Statements of Income	Dec. 31, 2020			Dec. 31, 2019			Dec. 31, 2020			Dec. 31, 2019
Interest income	$	29,751		$	26,888		$	8,792		$	7,237
Interest expense		(1,337	)		(3,124	)		(222	)		(662	)
Net interest income		28,414			23,764			8,570			6,575
Provision for loan losses		(3,782	)		(3,009	)		(501	)		(871	)
Noninterest income		1,709			1,801			845			264
Noninterest expense		(15,677	)		(15,053	)		(4,199	)		(4,309	)
Net income before income taxes		10,664			7,504			4,715			1,659
Provision for income taxes		(2,731	)		(1,888	)		(1,225	)		(284	)
Net income	$	7,933		$	5,616		$	3,491		$	1,375
Net income per share, basic	$	1.39		$	1.09		$	0.60		$	0.26
Net income per share, fully diluted	$	1.38		$	1.07		$	0.59		$	0.26