Summit Bank Reports 3rd Quarter Earnings

Summit Bank (OTCBB:SBKO) reported net income for the third quarter of $621 thousand or 28 cents per fully diluted share, an increase of 32 percent over the third quarter of 2013. Earnings for the comparable period one year ago were $471 thousand, or 23 cents per fully diluted share. Year to date earnings for 2014 were $1.7 million, or 79 cents per fully diluted share, compared to 44 cents per share for the same period in 2013. Year to date return on average assets and return on average equity were 1.4 percent and 15.2 percent, respectively. Fully diluted earnings per share for the trailing four quarters totaled $1.07.

“We are proud to be one of the few banks in the country generating this level of growth and return without lowering our loan loss reserves,” said Craig Wanichek, president and CEO of Summit Bank. “We are also pleased to continue to add great new relationships as a result of our common sense approach to banking.”

The bank experienced robust growth in its loan and deposit portfolios over the past twelve months. Total net loans as of September 30, 2014, were $137.4 million, representing a 19.2 percent increase over the September 30, 2013, total of $115.3 million. Total deposits increased by $23.2 million or 17.6 percent over the previous year. Summit’s capital base continues to grow in step with the bank’s steady asset growth and is driven by consistently strong earnings over the last six quarters. Total shareholders’ equity at September 30, 2014, was $16.2 million, an increase of 20.4 percent or $2.7 million over September 30, 2013.

“Governor Kitzhaber proclaimed this week as Community Bank Week in Oregon,” Wanichek said. “We are proud to be a community bank and what that means; our client’s deposits and Summit’s bankers working together to help local businesses thrive. It is that service model that has enabled us to achieve our seventh consecutive quarter of double-digit loan growth.”

The bank continues to hold very low levels of non-performing assets. Loans that are 90 days past due or in non-accrual status, plus foreclosed real estate, measured as a percentage of assets, stands at 0.4 percent on September 30, 2014, compared to 1.2 percent one year ago.

Headquartered in Eugene at 96 East Broadway, the bank specializes in providing high-level service to professionals and to medium-sized businesses and their owners. Summit Bank is quoted on the NASDAQ Over-the-Counter Bulletin Board as SBKO.

    
      
        
          (in thousands except per share data)
        
        
           
        
        
          Unaudited
        
        
           
        
        
          Unaudited
        
      
      
        
        
        
        
        
          

As of

As of

Summary Statements of Condition

Sep. 30, 2014

Sep. 30, 2013

        
      
      
        
          Cash and short term investments
        
        
        
        
          $
        
        
          23,855
        
        
        
        
        
        
          $
        
        
          20,669
        
        
        
      
      
        
          Securities
        
        
        
        
        
        
          6,238
        
        
        
        
        
        
        
        
          7,389
        
        
        
      
      
        
          Loans:
        
        
        
        
        
        
        
        
        
      
      
        
          Commercial
        
        
        
        
        
        
          48,395
        
        
        
        
        
        
        
        
          32,639
        
        
        
      
      
        
          Commercial real estate
        
        
        
        
        
        
          74,886
        
        
        
        
        
        
        
        
          64,337
        
        
        
      
      
        
          Other
        
        
        
        
        
        
          16,674
        
        
        
        
        
        
        
        
          20,393
        
        
        
      
      
        
          Loan loss reserve and unearned income
        
        
        
        
           
        
        
          (2,537
        
        
          )
        
        
        
        
           
        
        
          (2,089
        
        
          )
        
      
      
        
          Total net loans
        
        
        
        
        
        
          137,418
        
        
        
        
        
        
        
        
          115,281
        
        
        
      
      
        
          Property and other assets
        
        
        
        
        
        
          6,843
        
        
        
        
        
        
        
        
          6,780
        
        
        
      
      
        
          Repossessed property
        
        
        
        
           
        
        
          723
        
        
           
        
        
        
        
           
        
        
          32
        
        
           
        
      
      
        
          Total assets
        
        
        
        
          

$

175,077

        
        
           
        
        
        
        
          $
        
        
          150,150
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Deposits:
        
        
        
        
        
        
        
        
        
      
      
        
          Noninterest-bearing demand
        
        
        
        
          $
        
        
          53,558
        
        
        
        
        
        
          $
        
        
          46,018
        
        
        
      
      
        
          Interest-bearing demand
        
        
        
        
        
        
          87,755
        
        
        
        
        
        
        
        
          81,795
        
        
        
      
      
        
          Certificates of deposit
        
        
        
        
           
        
        
          13,527
        
        
           
        
        
        
        
           
        
        
          3,868
        
        
           
        
      
      
        
          Total deposits
        
        
        
        
        
        
          154,839
        
        
        
        
        
        
        
        
          131,681
        
        
        
      
      
        
          Other liabilities
        
        
        
        
        
        
          4,030
        
        
        
        
        
        
        
        
          5,005
        
        
        
      
      
        
          Shareholders' equity
        
        
        
        
           
        
        
          16,208
        
        
           
        
        
        
        
           
        
        
          13,464
        
        
           
        
      
      
        
          Total liabilities and shareholders' equity
        
        
        
        
          $
        
        
          175,077
        
        
           
        
        
        
        
          $
        
        
          150,150
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Book value per share
        
        
        
        
          $
        
        
          7.47
        
        
        
        
        
        
          $
        
        
          6.49
        
        
        
      
      
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
        
        
          Unaudited
        
        
        
        
          Unaudited
        
      
      
        
        
        
        
        
          

For the nine months ending

For the nine months ending

Summary Statements of Income

Sep. 30, 2014

Sep. 30, 2013

        
      
      
        
          Interest income
        
        
        
        
          $
        
        
          6,212
        
        
        
        
        
        
          $
        
        
          4,806
        
        
        
      
      
        
          Interest expense
        
        
        
        
           
        
        
          (184
        
        
          )
        
        
        
        
           
        
        
          (168
        
        
          )
        
      
      
        
          Net interest income
        
        
        
        
        
        
          6,028
        
        
        
        
        
        
        
        
          4,639
        
        
        
      
      
        
          Provision for loan losses
        
        
        
        
        
        
          (319
        
        
          )
        
        
        
        
        
        
          (606
        
        
          )
        
      
      
        
          Noninterest income
        
        
        
        
        
        
          765
        
        
        
        
        
        
        
        
          572
        
        
        
      
      
        
          Noninterest expense
        
        
        
        
           
        
        
          (3,713
        
        
          )
        
        
        
        
           
        
        
          (3,190
        
        
          )
        
      
      
        
          Net income before income taxes
        
        
        
        
           
        
        
          2,761
        
        
           
        
        
        
        
           
        
        
          1,415
        
        
           
        
      
      
        
          Provision for income taxes
        
        
        
        
        
        
          (1,034
        
        
          )
        
        
        
        
        
        
          (519
        
        
          )
        
      
      
        
          Net income
        
        
        
        
          $
        
        
          

1,727

        
        
           
        
        
        
        
          $
        
        
          896
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Net income per share, basic
        
        
        
        
          $
        
        
          0.81
        
        
        
        
        
        
          $
        
        
          0.44
        
        
        
      
      
        
          Net income per share, fully diluted
        
        
        
        
          $
        
        
          0.79
        
        
        
        
        
        
          $
        
        
          0.44
        
        
        
      
    
    

Summit BankPresident & Chief Executive OfficerCraig Wanichek, 541-684-7500