Summit Bank Reports 2021 2nd Quarter Earnings

July 21, 2021 at 09:00 AM EDT

Summit Bank (OTC Pink: SBKO)

Q2 2021 Net Income - $2.54 million or $0.33 per fully diluted share.
Year to date Net Income - $4.91 million or $0.65 per fully diluted share.
Trailing 12 month Net Income - $10.46 million or $1.38 per fully diluted share.
Trailing 12 month Net Loan Growth - $76.4 million or 16.2 percent (excluding PPP loans)
PPP loans outstanding - $71.3 million out of $180.9 million total originations during 2020 and 2021.
Q2 2021 Three month Deposit Growth - $31.6 million or 4.5 percent over Q1 2021

Earnings for Q2 2021 exceeded the similar period last year by $1.1 million, an increase of 66 percent or $0.13 per fully diluted share. Year to date earnings are up 85.3 percent (increase of $0.30) over last year. The earnings improvement was driven by sharply lower provision for loan losses compared to 2020, strong growth in the Bank’s loan portfolio (excluding Paycheck Protection Program (PPP) activity), as well as ongoing income from the Bank’s PPP loans.

“We are very pleased with our overall credit quality coming out of the pandemic,” said Craig Wanichek, president and chief executive officer. “This is a testament to the strong operational management of our clients during very uncertain times.”

Total net loans as of June 30, 2021, were $618.8 million, which included $71.3 million of PPP loan balances. Net loans excluding PPP loans grew by $29.5 million or 5.7 percent during the quarter and by $76.4 million or 16.2 percent since June 30, 2020. Deposit growth also remains extremely high with total deposits increasing by $140.1 million or 23.8 percent over the trailing 12 month period. The Bank has been successful in maintaining strong and consistent profitability concurrent with its recent rapid balance sheet growth with return on average equity of 15.2 percent during Q2, 2021 following 14.7 percent during Q1, 2021 and 14.3 percent for the 2020 fiscal year. The Bank is currently in its ninth consecutive year producing a return on equity in excess of 10 percent.

“Our bankers have been very active in our markets. This has resulted in loan and deposit growth with both new and existing clients,” said Wanichek. Summit Bank is now over $800 million in assets.

Summit’s continued robust earnings have supported its asset growth during the quarter and thus the Bank’s capital position remains strong, with total shareholders’ equity ending the quarter at $68.1 million, an increase of $2.6 million over the last three months and an increase of $10.7 million over the last 12 months. Liquidity remains extremely high with cash and short term investments as of June 30, 2021 at $145.3 million or 23.0 percent of total net loans.

The Bank continues to hold very low levels of non-performing assets with total non-performing assets at June 30, 2021 representing just 0.08 percent of total assets, down from 0.27 percent at March 31, 2021.

Summit Bank, with offices in Eugene, Bend and the Portland Metropolitan area, specializes in providing high-level service to professionals and medium-sized businesses and their owners. Summit was recognized earlier this year as a Top Small Business Administration (SBA) Community Bank Lender in the State of Oregon. Summit Bank is quoted on the OTC Pink as SBKO.

QUARTERLY FINANCIAL REPORT – JUNE 2021

(in thousands except per share data)	Unaudited			Unaudited
	As of			As of
Summary Statements of Condition	Jun. 30, 2021			Jun. 30, 2020
Cash and short term investments	$	145,312		$	112,489
Securities		31,613			6,909
Loans:
Commercial		226,087			241,712
Commercial real estate		365,160			299,533
Other		37,776			56,531
Loan loss reserve and unearned income		(10,236	)		(12,192	)
Total net loans		618,788			585,584
Property and other assets		15,452			14,828
Repossessed property		106			289
Total assets	$	811,270		$	720,099

Deposits:
Noninterest-bearing demand	$	187,585		$	152,977
Interest-bearing demand		528,801			402,969
Certificates of deposit		11,687			32,003
Total deposits		728,073			587,948
Other liabilities		15,069			74,729
Shareholders' equity		68,128			57,422
Total liabilities and shareholders' equity	$	811,270		$	720,099

Book value per share	$	9.01		$	7.65

	Unaudited			Unaudited			Unaudited			Unaudited
	For the six months ending			For the six months ending			For the three months ending			For the three months ending
Summary Statements of Income	Jun. 30, 2021			Jun. 30, 2020			Jun. 30, 2021			Jun. 30, 2020
Interest income	$	15,935		$	13,939		$	8,181		$	6,968
Interest expense		(307	)		(841	)		(129	)		(291	)
Net interest income		15,628			13,098			8,052			6,677
Provision for loan losses		(1,136	)		(2,499	)		(495	)		(1,063	)
Noninterest income		881			464			478			197
Noninterest expense		(8,746	)		(7,802	)		(4,606	)		(3,863	)
Net income before income taxes		6,627			3,261			3,429			1,948
Provision for income taxes		(1,714	)		(877	)		(890	)		(534	)
Net income	$	4,913		$	2,384		$	2,540		$	1,414

Net income per share, basic	$	0.65		$	0.35		$	0.34		$	0.20
Net income per share, fully diluted	$	0.65		$	0.35		$	0.33		$	0.20

View source version on businesswire.com: https://www.businesswire.com/news/home/20210721005127/en/

Contacts

Craig Wanichek

President & Chief Executive Officer

541-684-7500

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Summit Bank Reports 2021 2nd Quarter Earnings

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