Summit Bank Group Reports 2024 3rd Quarter Earnings

Summit Bank Group Reports 2024 3rd Quarter Earnings (Graphic: Business Wire)
-
Q3 2024 Net Income -
or$3.17 million per fully diluted share, up 29.7 percent over Q3 2023.$0.41 -
2024 Year to Date Net Income -
or$8.30 million per fully diluted share, an increase of$1.06 or$1.05 million per share and 14.0 percent over the similar period in 2023.$0.13 -
Cash and securities total
– 17.7 percent of assets.$225.3 million -
Year over year Net Loan Growth -
or 16.4 percent.$143.8 million -
Year over year Deposit Growth -
or 25.2 percent.$229.1 million
Summit Bank Group reported net income for the third quarter of
Lower provision for loan losses during the third quarter was the primary driver of the improved earnings compared to 2023 with total provision expense lower by
Strong deposit growth during the quarter of
Total net loans as of September 30, 2024, were
“We are excited to see strong deposit growth this quarter, driven by the continued trust of our longtime clients and the addition of new relationships in all of the
Return on average equity for the third quarter and the trailing four quarters was 12.3 percent and 10.1 percent respectively. Total shareholders’ equity ended the third quarter at
Total non-performing assets as of September 30, 2024, declined slightly during the third quarter to 0.24 percent of total assets after ending the second quarter of 2024 at 0.27 percent. Total non-performing assets are increased over the 0.13 percent figure as of September 30, 2023, with the entirety of the increase resulting from a single SBA guaranteed loan relationship currently in non-accrual status. An individual allowance for expected credit loss equal to the unguaranteed portion of this loan is included in the September 30, 2024 allowance for credit losses and was charged to expense during 2024.
The Bank’s commercial real estate portfolio has continued to perform well, with multifamily and industrial loans comprising nearly half of a balanced mix of property types. Refinance and interest rate risk is limited as only 18 percent of the portfolio matures prior to 2027.
“As we reflect on Summit Bank Group’s performance this quarter, we sincerely appreciate the hard work and dedication of our banking team. We are grateful for the loyalty of our clients and for the support of our Board and local shareholders. The achievements made this quarter are a direct result of collaboration across all units,” said Wanichek.
About Summit Bank Group, Inc.
Summit Bank Group Inc., through its wholly-owned subsidiary Summit Bank, maintains offices in
Forward Looking Statements
This press release contains certain forward-looking statements about the Company and the Bank. Forward-looking statements include statements regarding anticipated future events or results and can be identified by the fact that they do not relate strictly to historical or current facts. Forward-looking statements, by their nature, are subject to risks and uncertainties. Certain factors that could cause actual results to differ materially from expected results include increased competitive pressures, inflation, changes in the interest rate environment, general economic conditions or conditions within the securities markets, potential recessionary conditions, changes in asset quality, charge-offs and credit loss provisions, changes in demand for our products and services, availability of low-cost funding, legislative, accounting, tax and regulatory changes, including changes in the monetary and fiscal policies of the Board of Governors of the Federal Reserve System, political developments, uncertainties or instability, catastrophic events, acts of war or terrorism, natural disasters or breach of our operational or security systems or infrastructure, including cyberattacks that could adversely affect the Company’s financial condition and results of operations and the business in which the Company and the Bank are engaged.
Accordingly, you should not place undue reliance on forward-looking statements. The Company undertakes no obligation to revise these forward-looking statements or to reflect events or circumstances after the date of this press release.
QUARTERLY FINANCIAL REPORT – September 30th 2024
(in thousands except per share data) | Unaudited | Unaudited | Unaudited | |||||||||||||
As of | As of | As of | ||||||||||||||
Summary Statements of Condition | Sep. 30, 2024 | Dec. 31, 2023 | Sep. 30, 2023 | |||||||||||||
Cash and short term investments | $ |
168,888 |
|
$ |
71,265 |
|
$ |
96,222 |
|
|||||||
Securities |
|
56,422 |
|
|
63,637 |
|
|
67,047 |
|
|||||||
Loans: | ||||||||||||||||
Commercial |
|
306,615 |
|
|
283,870 |
|
|
260,634 |
|
|||||||
Commercial real estate |
|
648,733 |
|
|
580,801 |
|
|
551,049 |
|
|||||||
Other |
|
74,521 |
|
|
61,002 |
|
|
73,408 |
|
|||||||
Loan loss reserve and unearned income |
|
(10,619 |
) |
|
(10,511 |
) |
|
(9,615 |
) |
|||||||
Total net loans |
|
1,019,251 |
|
|
915,162 |
|
|
875,475 |
|
|||||||
Property and other assets |
|
28,438 |
|
|
27,634 |
|
|
26,366 |
|
|||||||
Repossessed property |
|
688 |
|
|
672 |
|
|
1,009 |
|
|||||||
Total assets | $ |
1,273,686 |
|
$ |
1,078,370 |
|
$ |
1,066,120 |
|
|||||||
Deposits: | ||||||||||||||||
Noninterest-bearing demand | $ |
185,145 |
|
$ |
175,717 |
|
$ |
183,329 |
|
|||||||
Interest-bearing demand |
|
830,276 |
|
|
687,863 |
|
|
683,258 |
|
|||||||
Certificates of deposit |
|
121,648 |
|
|
53,363 |
|
|
41,417 |
|
|||||||
Total deposits |
|
1,137,069 |
|
|
916,943 |
|
|
908,004 |
|
|||||||
Subordinated debt |
|
18,474 |
|
|
19,675 |
|
|
19,665 |
|
|||||||
Other liabilities |
|
12,581 |
|
|
46,097 |
|
|
45,900 |
|
|||||||
Shareholders' equity |
|
105,563 |
|
|
95,655 |
|
|
92,551 |
|
|||||||
Total liabilities and shareholders' equity | $ |
1,273,686 |
|
$ |
1,078,370 |
|
$ |
1,066,120 |
|
|||||||
Book value per share | $ |
13.68 |
|
$ |
12.46 |
|
$ |
12.05 |
|
|||||||
Unaudited | Unaudited | Unaudited | Unaudited | |||||||||||||
For the nine months ended |
For the nine months ended |
For the three months ended |
For the three months ended |
|||||||||||||
Summary Statements of Income | Sep. 30, 2024 | Sep. 30, 2023 | Sep. 30, 2024 | Sep. 30, 2023 | ||||||||||||
Interest income | $ |
57,461 |
|
$ |
47,603 |
|
$ |
20,452 |
|
$ |
16,890 |
|
||||
Interest expense |
|
(20,158 |
) |
|
(13,413 |
) |
|
(7,490 |
) |
|
(4,879 |
) |
||||
Net interest income |
|
37,303 |
|
|
34,190 |
|
|
12,962 |
|
|
12,011 |
|
||||
Provision for loan losses |
|
(5,283 |
) |
|
(6,082 |
) |
|
(1,431 |
) |
|
(2,328 |
) |
||||
Noninterest income |
|
923 |
|
|
770 |
|
|
92 |
|
|
207 |
|
||||
Noninterest expense |
|
(21,672 |
) |
|
(19,065 |
) |
|
(7,316 |
) |
|
(6,586 |
) |
||||
Net income before income taxes |
|
11,271 |
|
|
9,813 |
|
|
4,307 |
|
|
3,305 |
|
||||
Provision for income taxes |
|
(2,977 |
) |
|
(2,572 |
) |
|
(1,135 |
) |
|
(861 |
) |
||||
Net income | $ |
8,293 |
|
$ |
7,241 |
|
$ |
3,171 |
|
$ |
2,444 |
|
||||
Net income per share, basic | $ |
1.08 |
|
$ |
0.94 |
|
$ |
0.41 |
|
$ |
0.32 |
|
||||
Net income per share, fully diluted | $ |
1.06 |
|
$ |
0.93 |
|
$ |
0.41 |
|
$ |
0.32 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20241023226992/en/
Craig Wanichek, President & Chief Executive Officer 541-684-7500
Source: Summit Bank Group