Summit Bank Group Reports 2022 First Quarter Earnings

Rhea-AI Summary

Summit Bank Group (OTC Pink: SBKO) reported a net income of $2.7 million, or $0.35 per fully diluted share, for Q1 2022, up 15% from $2.37 million in Q1 2021. Year-over-year net loan growth reached $116.0 million (22.4%). Total deposits increased by $134.0 million (19.2%) since March 31, 2021. Notably, the bank maintained a return on average equity of 14.5%. The company had cash and short-term investments of $208.0 million, accounting for 32.6% of net loans. Summit Bank also boasts low non-performing assets at just 0.05% of total assets.

Positive

• Net income increased by 15% year-over-year to $2.7 million.
• Year-over-year net loan growth of $116.0 million, or 22.4%.
• Deposit growth of $134.0 million, or 19.2% over the past year.
• Return on average equity remains strong at 14.5%.
• Non-performing assets at just 0.05% of total assets.

Negative

• None.

EUGENE, Ore.--(BUSINESS WIRE)-- Summit Bank Group (OTC Pink: SBKO):

• Q1 2022 Net Income - $2.7 million or $0.35 per fully diluted share.
• Trailing twelve months Net Income - $11.2 million or $1.47 per fully diluted share.
• Year over year Net Loan Growth - $116.0 million or 22.4 percent (excluding PPP loans)
• PPP loans outstanding - $3.7 million out of $180.9 million total originations during 2020 and 2021.
• Year over year Deposit Growth - $134.0 million or 19.2 percent over March 31^st 2021

Summit Bank Group reported net income for the first quarter of $2.73 million or 35 cents per fully diluted share. Comparable earnings for the first quarter of 2021 were $2.37 million or 31 cents per fully diluted share, representing an increase of 15 percent to earnings and 14 percent to earnings per fully diluted share. Excluding all Paycheck Protection Program (PPP) loan related income, Q1 2022 tax equivalent earnings would have been $2.57 million, an increase of $796 thousand, 44.9 percent or $0.08 per fully diluted share over Q1 2021. PPP loan related income in total comprised only 2.2 percent of total Company net interest and non-interest income during the first quarter of 2022 compared to 10.2 percent during the first quarter of 2021.

“As a team over the challenging last two years, we have relied heavily on communication with our clients and prospects. We understand their strategic plans, which has enabled Summit to significantly grow its loan and deposit portfolios,” said Craig Wanichek, president and CEO. “The strong loan growth combined with historically low loan loss are the primary drivers of the earnings growth during the first quarter of 2022.”

Total net loans as of March 31^st, 2022, were $637.7 million, which included $3.7 million of PPP loan balances. Net loans excluding PPP loans grew by $25.3 million or 4.1 percent during the first quarter and by $116.0 million or 22.4 percent since March 31^st, 2021. Deposit growth also remains robust with total deposits increasing by $35.7 million or 4.5 percent during the first quarter and by $134.0 million or 19.2 percent since March 31^st, 2021. The Company has been successful in maintaining strong and consistent profitability concurrent with its recent rapid balance sheet growth with return on average equity of 14.5 percent during Q1 2022 following 16.7 percent during Q4 2021 and 15.9 percent for the 2021 fiscal year. The Company is currently in its 10^th consecutive year producing a return on equity in excess of 10 percent.

“We were pleased to announce the hiring of Aaron Walker as Chief Credit Officer during the quarter,” said Wanichek. “Aaron has a deep and broad credit background in all of our markets and with our types of loans.”

The Company’s strong earnings continue to support asset growth with total shareholders’ equity ending the first quarter at $74.4 million, an increase of $8.8 million or 13.5 percent since March 31^st, 2021. Liquidity remains extremely high with cash and short term investments as of March 31^st, 2022 at $208.0 million or 32.6 percent of total net loans.

The Bank continues to hold very low levels of non-performing assets with total non-performing assets at March 31^st, 2022 representing just 0.05 percent of total assets, unchanged from December 31^st, 2021 and down from 0.27 percent March 31^st 2021.

“The commitment of our team members and the culture they have created led Summit Bank to being recognized by Oregon Business Magazine as one of the Top 100 Best Companies to Work for in Oregon as well as one of The Top 100 Best Green companies in the State,” said Wanichek. “In addition, Eugene Market President Jenny Bennett was recognized as one of the 20 Most Influential Women Business Leaders in the State of Oregon,” according to the Portland Business Journal.

Summit Bank Group Inc., through its wholly owned subsidiary Summit Bank, maintains offices in Eugene, Central Oregon and Portland, and specializes in providing high-level service to professionals and medium-sized businesses and their owners. Summit Bank Group Inc. is quoted on the NASDAQ Over-the-Counter Bulletin Board as SBKO.

QUARTERLY FINANCIAL REPORT – MARCH 2022
(in thousands except per share data)					Unaudited				Unaudited
					As of				As of
Summary Statements of Condition					Mar. 31, 2022				Mar. 31, 2021
Cash and short term investments					$	208,027			$	135,586
Securities						67,318				13,867
Loans:
Commercial						195,350				234,728
Commercial real estate						397,314				341,696
Other						52,797				46,479
Loan loss reserve and unearned income						(7,714	)			(11,623	)
Total net loans						637,746				611,280
Property and other assets						17,797				14,735
Repossessed property						88				169
	Total assets				$	930,975			$	775,637
Deposits:
Noninterest-bearing demand					$	205,705			$	171,212
Interest-bearing demand						615,850				508,701
Certificates of deposit						8,875				16,566
	Total deposits					830,430				696,479
Subordinated debt						19,603				-
Other liabilities						6,549				13,587
Shareholders' equity						74,394				65,571
	Total liabilities and shareholders' equity				$	930,975			$	775,637
Book value per share					$	9.79			$	8.69
					Unaudited				Unaudited
					For the three months ending				For the three months ending
Summary Statements of Income					Mar. 31, 2022				Mar. 31, 2021
Interest income					$	9,122			$	7,754
Interest expense						(303	)			(178	)
	Net interest income					8,819				7,576
Provision for loan losses						(700	)			(641	)
Noninterest income						669				403
Noninterest expense						(5,050	)			(4,140	)
	Net income before income taxes					3,739				3,198
Provision for income taxes						(1,011	)			(824	)
	Net income				$	2,728			$	2,374
	Net income per share, basic				$	0.36			$	0.31
	Net income per share, fully diluted				$	0.35			$	0.31

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20220420005161/en/

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

Source: Summit Bank Group

FAQ

What were Summit Bank Group's net income results for Q1 2022?

Summit Bank Group reported a net income of $2.7 million, or $0.35 per fully diluted share for Q1 2022.

How much did net loans grow for Summit Bank Group in the last year?

Net loans grew by $116.0 million, or 22.4%, year-over-year.

What was the year-over-year deposit growth for Summit Bank Group?

Total deposits increased by $134.0 million, or 19.2%, compared to March 31, 2021.

What is the current return on average equity for Summit Bank Group?

The return on average equity for Q1 2022 is 14.5%.

What percentage of total assets are non-performing at Summit Bank Group?

Non-performing assets represent just 0.05% of total assets as of March 31, 2022.