Summit Bank Reports 1st Quarter Earnings

EUGENE, Ore.–(BUSINESS WIRE)–Summit Bank (OTC Pink: SBKO) reported net income for the first quarter of $971 thousand or 18 cents per fully diluted share. Comparable earnings for the first quarter of 2019 were $1.24 million or 24 cents per fully diluted share, representing a decrease of 21% to earnings and 22% to earnings per fully diluted share. Elevated loan related losses in the Bank’s small business commercial equipment finance group (EFG), as well as, increased provision for future loan losses resulting from the COVID- 19 pandemic were the primary drivers of the lower earnings for the quarter compared to the previous year. Earnings per fully diluted share (EPS) for the trailing four quarters ended March 31st were $1.02 compared to $1.12 for the four quarter period ended March 31st 2019.

Despite the challenging economic environment, Summit has continued to achieve solid balance sheet growth. Total net loans as of March 31st 2020 were $464.2 million, an increase of $26.7 million for the quarter and an increase of $106.5 million or 29.8 percent over March 31st 2019. Deposit growth continues to be robust as well. Total deposits as of March 31st 2020 were $499.8 million, an increase of $48.3 million or 10.7 percent and $99.4 million or 24.8 percent over December 31st 2019 and March 31st 2019, respectively.

“While the COVID-19 virus has had a negative effect on economic activity,” said Craig Wanichek, president and CEO. “Summit Bank remains a source of strength. This strength has enabled the Bank to support our clients, colleagues and communities during these unprecedented times. We are extremely proud of the team’s efforts to have approved, underwritten and funded nearly $90 million in PPP loans to approximately 330 clients in the communities we serve. Clients have also benefited from loan modifications, waivers and forbearances as they have worked with Summit’s bankers. We remain steadfast in our commitment to be accessible and responsive to all businesses in our communities.”

The Bank reported $88.5 million of cash & short-term investments in securities as of March 31st 2020. This is a 60.3 percent increase over the $55.2 million held in cash & short-term investments in securities at fiscal year-end 2019. The Bank continues to hold very low levels of non-performing assets. Total non-performing assets at March 31st 2020 represented just 0.2 percent of total assets, a decrease from 0.4 percent as of March 31st 2019.

“As the result of the lower levels of port activities, the Bank’s EFG division experienced losses and slowness in the first part of the quarter,” said Wanichek. “The Bank overall experienced some credit deterioration at the end of the quarter reflected in the increased provision but there were no new loans 30 days past due at quarter-end, outside of our EFG portfolio. In addition, non-accrual levels also remain very low.”

With offices in Eugene and 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 – MARCH 2020
(in thousands except per share data) Unaudited Unaudited
As of As of
Summary Statements of Condition Mar. 31, 2020 Mar. 31, 2019
Cash and short term investments

$

81,264

 

$

73,062

 

Securities

 

7,244

 

 

4,348

 

Loans:
Commercial

 

135,191

 

 

114,163

 

Commercial real estate

 

289,188

 

 

209,456

 

Other

 

48,255

 

 

40,795

 

Loan loss reserve and unearned income

 

(8,437

)

 

(6,699

)

Total net loans

 

464,196

 

 

357,716

 

Property and other assets

 

14,414

 

 

12,707

 

Repossessed property

 

347

 

 

810

 

Total assets

$

567,465

 

$

448,642

 

 
Deposits:
Noninterest-bearing demand

$

100,363

 

$

86,780

 

Interest-bearing demand

 

356,989

 

 

277,809

 

Certificates of deposit

 

42,423

 

 

35,748

 

Total deposits

 

499,775

 

 

400,337

 

Other liabilities

 

19,754

 

 

6,335

 

Shareholders’ equity

 

47,936

 

 

41,969

 

Total liabilities and shareholders’ equity

$

567,465

 

$

448,642

 

 
Book value per share

$

9.20

 

$

8.13

 

 
Unaudited Unaudited
For the three
months ending
For the three
months ending
Summary Statements of Income Mar. 31, 2020 Mar. 31, 2019
Interest income

$

6,971

 

$

6,146

 

Interest expense

 

(550

)

 

(771

)

Net interest income

 

6,421

 

 

5,375

 

Provision for loan losses

 

(1,436

)

 

(570

)

Noninterest income

 

267

 

 

276

 

Noninterest expense

 

(3,939

)

 

(3,395

)

Net income before income taxes

 

1,313

 

 

1,686

 

Provision for income taxes

 

(343

)

 

(450

)

Net income

$

971

 

$

1,236

 

 
Net income per share, basic

$

0.19

 

$

0.24

 

Net income per share, fully diluted

$

0.18

 

$

0.24

 

 

Contacts

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

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