Summit Bank Reports 2019 and 4th Quarter Earnings

EUGENE, Ore.–(BUSINESS WIRE)–Summit Bank (OTC Pink: SBKO) reported net income for the fiscal year ended December 31, 2019 of $5.62 million or $1.07 per fully diluted share.

Summit Bank grew to $507 million in assets, up 22%, or $91 million from fiscal-year end 2018. Summit also became the fourth largest bank headquartered in the State of Oregon in 2019, up from number seven. 2019 earnings were slightly below fiscal 2018 earnings of $5.76 million or $1.10 per share as startup expenses and year one operating results associated with the Bank’s expansion into downtown Portland impacted earnings by approximately $0.22 per fully diluted share. In addition, the Bank incurred an expense of approximately $0.04 per fully diluted share, associated with an accrual in regards to a compliance matter in our equipment finance area.

Summit achieved its seventh consecutive year of annual loan growth in excess of 20 percent during 2019. Total net loans as of December 31, 2019, were $437.4 million, representing a 27.9 percent increase over the fiscal 2018 total of $342.1 million. Deposit growth was similarly strong, with total deposits increasing by $80.1 million or 21.6 percent over the previous year. The Bank has maintained consistent profitability in conjunction with its rapid growth, with return on average equity for 2019 of 12.8 percent.

“The overall growth of Summit has been extremely exciting,” said Craig Wanichek, president and chief executive officer. “Our established markets, Eugene/Springfield and Central Oregon had very good years. Eugene grew assets 14%, with deposits up over $47 million and Central Oregon grew assets an outstanding 41%. We are also very pleased with the progress in the Portland Market. The team has made great strides in establishing our brand in the local area. Our business clients in all three markets identify with our value proposition of being the business bank of choice.”

Summit’s liquidity and capital positions have remained strong as deposit growth has supported the Bank’s loan growth and operating earnings have similarly increased with the Bank’s growth. Cash and short term investments remain strong as of fiscal year end 2019, at $55 million, or 12.6 percent of total net loans. Similarly, during 2019, total shareholders’ equity increased by $6.3 million to $46.8 million, an increase of 15.5 percent.

The Bank continues to hold very low levels of non-performing assets, with total non-performing assets at December 31st, 2019 representing just 0.18 percent of total assets, a decrease from 0.55 percent at December 31st 2018.

Summit Bank, with offices in Eugene, Bend and downtown Portland, specializes in providing high-level service to professionals, non-profits, businesses and their owners. Summit Bank is quoted on the NASDAQ Over-the-Counter Bulletin Board as SBKO.

QUARTERLY FINANCIAL REPORT – DECEMBER 2019

(in thousands except per share data) Unaudited Unaudited
As of As of
Summary Statements of Condition Dec. 31, 2019 Dec. 31, 2018
Cash and short term investments

$

48,373

$

56,519

Securities

 

6,795

 

4,507

Loans:
Commercial

 

131,977

 

110,198

Commercial real estate

 

272,600

 

200,097

Other

 

40,827

 

38,167

Loan loss reserve and unearned income

 

(7,956)

 

(6,369)

Total net loans

 

437,449

 

342,094

Property and other assets

 

14,457

 

12,584

Repossessed property

 

314

 

765

Total assets

$

507,388

$

416,468

 
Deposits:
Noninterest-bearing demand

$

91,982

$

92,610

Interest-bearing demand

 

312,365

 

259,137

Certificates of deposit

 

47,119

 

19,657

Total deposits

 

451,467

 

371,404

Other liabilities

 

9,086

 

4,499

Shareholders’ equity

 

46,835

 

40,564

Total liabilities and shareholders’ equity

$

507,388

$

416,468

 
Book value per share

$

9.02

$

7.88

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, 2019 Dec. 31, 2018 Dec. 31, 2019 Dec. 31, 2018
Interest income

$

26,890

 

$

21,538

 

$

7,237

 

$

6,057

 

Interest expense

 

(3,124

)

 

(2,080

)

 

(662

)

 

(638

)

Net interest income

 

23,766

 

 

19,459

 

 

6,575

 

 

5,419

 

Provision for loan losses

 

(3,005

)

 

(2,167

)

 

(871

)

 

(433

)

Noninterest income

 

1,801

 

 

1,733

 

 

264

 

 

437

 

Noninterest expense

 

(15,055

)

 

(11,275

)

 

(4,309

)

 

(2,946

)

Net income before income taxes

 

7,507

 

 

7,750

 

 

1,659

 

 

2,477

 

Provision for income taxes

 

(1,888

)

 

(1,986

)

 

(284

)

 

(507

)

Net income

$

5,619

 

$

5,764

 

$

1,374

 

$

1,970

 

 
Net income per share, basic

$

1.09

 

$

1.12

 

$

0.26

 

$

0.38

 

Net income per share, fully diluted

$

1.07

 

$

1.10

 

$

0.26

 

$

0.38

 

 

Contacts

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

 

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