Summit Bank reports second quarter 2021 results

EUGENE, Oregon – (COMMERCIAL THREAD) – Summit Bank (OTC Rose: SBKO)

  • Second quarter 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.

  • Last 12-month net income – $ 10.46 million or $ 1.38 per fully diluted share.

  • Net loan growth over the last 12 months – $ 76.4 million or 16.2% (excluding PPP loans)

  • Outstanding PPP loans – $ 71.3 million out of a total of $ 180.9 million in originations in 2020 and 2021.

  • Q2 2021 Three-month deposit growth – $ 31.6 million or 4.5% from Q1 2021

Profit for the second quarter of 2021 was $ 1.1 million higher than a similar period last year, an increase of 66% or $ 0.13 per fully diluted share. Cumulative revenues for the year increased by 85.3% (increase of $ 0.30) compared to last year. The improvement in results is explained by a sharp drop in provisions for loan losses compared to 2020, strong growth in the Bank’s loan portfolio (excluding the Paycheck Protection Program (PPP) activity), as well as continued income from PPP loans from the Bank.

“We are very satisfied with our overall credit quality emerging from the pandemic,” said Craig Wanishek, President and CEO. “This is a testament to the solid operational management of our clients in very uncertain times. ”

Total net lending as of June 30, 2021 was $ 618.8 million, including $ 71.3 million of PPP loan balances. Net lending excluding PPP loans increased $ 29.5 million or 5.7% in the quarter and $ 76.4 million or 16.2% since June 30, 2020. Deposit growth also remains extremely strong. high, with total deposits increasing by $ 140.1 million or 23.8% in the past 12 months. . The Bank has managed to maintain strong and consistent profitability alongside its recent rapid growth in its balance sheet with an average return on equity of 15.2% in the second quarter of 2021, down from 14.7% in the first quarter of 2021 and 14.3% for fiscal 2020. The Bank is currently in its ninth consecutive year, producing a return on equity above 10%.

“Our bankers have been very active in our markets. This has resulted in growth in loans and deposits with new and existing customers, ”said Wanishek. Summit Bank now has over $ 800 million in assets.

Summit’s continued strong earnings supported its asset growth during the quarter and as a result the Bank’s capital position remains strong, with total equity at the end of the quarter at $ 68.1 million. dollars, an increase of $ 2.6 million over the past three months, and an increase of $ 10.7 million over the past 12 months. Liquidity remains extremely high with cash and short-term investments as of June 30, 2021 at $ 145.3 million, or 23.0% of total net lending.

The Bank continues to hold very low levels of non-performing assets, with total non-performing assets as at June 30, 2021 representing only 0.08% of total assets, compared to 0.27% as at March 31, 2021.

Summit Bank, with offices in Eugene, Bend and the greater Portland area, specializes in providing high-level service to professionals, mid-size businesses and their owners. Summit was recognized earlier this year as one of the Top Small Business Administration (SBA) Community Bank Lenders in the state of Oregon. Summit Bank is listed on the OTC Pink under the name SBKO.

QUARTERLY FINANCIAL REPORT – JUNE 2021

(in thousands except data per share) Unaudited Unaudited
From From
Summary statements of condition June 30, 2021 June 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

Reserve for loan losses 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:
Non-interest bearing application

$

187,585

$

152,977

Interest-bearing application

528,801

402,969

Certificates of deposit

11 687

32,003

Total deposits

728,073

587,948

Other liabilities

15,069

74,729

Equity

68,128

57,422

Total liabilities and equity

$

811 270

$

720,099

Book value per share

$

9.01

$

7.65

Unaudited Unaudited Unaudited Unaudited
For the six months
end
For the six months
end
For the three
month ending
For the three
month ending
Summary Income Statements June 30, 2021 June 30, 2020 June 30, 2021 June 30, 2020
Interest income

$

15,935

$

13 939

$

8,181

$

6 968

Interest charges

(307

)

(841

)

(129

)

(291

)

Net interest income

15 628

13,098

8,052

6,677

Allowance for loan losses

(1,136

)

(2,499

)

(495

)

(1,063

)

Non-interest income

881

464

478

197

Non-interest charges

(8,746

)

(7,802

)

(4,606

)

(3,863

)

Net profit before taxes

6 627

3 261

3429

1 948

Provision for income taxes

(1,714

)

(877

)

(890

)

(534

)

Net revenue

$

4 913

$

2384

$

2,540

$

1,414

Net earnings per share, basic

$

0.65

$

0.35

$

0.34

$

0.20

Net earnings per share, fully diluted

$

0.65

$

0.35

$

0.33

$

0.20

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