Summit Bank Group Reports 2025 1st Quarter Earnings

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

• Q1 2025 Net Income of $2.93 million or $0.37 per fully diluted share; an increase of 20.2 percent over Q1 2024.
• Q1 2025 Net Income increased from $2.42 million or $0.31 per share for Q1 2024.
• Cash and Securities total $189.5 million – 14.8 percent of assets.
• Year over year Net Loan Growth - $93.4 million or 9.6 percent over March 31, 2024.
• Year over year Deposit Growth - $118.1 million or 11.6 percent over March 31, 2024.
• Q1 2025 Net Interest Income increased $1.38 million or 11.4 percent over Q1 2024.

Summit Bank Group reported net income for the first quarter of $2.93 million or 37 cents per fully diluted share. Comparable earnings for the first quarter of 2024 were $2.42 million or 31 cents per fully diluted share, representing an increase of 20.8 percent or 6 cents to earnings and earnings per fully diluted share respectively. An increase in net interest income of $1.38 million or 11.4 percent concurrent with an increase in noninterest expense of only $701 thousand were the primary drivers of the growth in earnings. Provision for loan related losses also improved slightly compared to the first quarter of 2024; improving by $64 thousand or 3.2 percent.

“The Bank is pleased to report loan growth and improved total net interest income. Our net interest margin compared to one year ago decreased slightly from 4.69% to 4.64%, with the decrease resulting from a reduced concentration of higher margin Equipment Finance assets in the Bank’s portfolio,” said Craig Wanichek president and CEO. “We experienced significant loan growth in Portland including our HOA Banking Group, and solid loan growth in Eugene and Central Oregon more than offsetting the reduction in our Equipment Finance Group.”

The Bank continues to maintain a highly liquid balance sheet with cash and Available for Sale (AFS) short-term securities totaling $189.5 million, which represents 14.8 percent of total assets as of March 31, 2025, increased from $149.9 million or 13.1 percent of assets as of March 31, 2024. “Our highly liquid balance sheet is a reflection of our disciplined financial strategy – it ensures that we are well-positioned to meet the needs of our clients, adapt quickly to market shifts and capitalize on future opportunities,” said Wanichek.

Additionally, the Bank maintains secured borrowing commitments from the Federal Home Loan Bank and the Federal Reserve Bank with total available borrowing capacity as of March 31, 2025, of $316 million. The Bank’s cash and available secured borrowing as of March 31, 2025, total $464 million. This total is 36.1 percent of total assets and 125 percent of total estimated uninsured deposits as of March 31, 2025.

The Bank’s rapid pace of loan growth has tapered in response to recent economic conditions during the three most recent quarters, with growth in total net loans of $93.4 million or 9.6 percent over the twelve-month period ending March 31, 2025. This relatively measured loan growth follows a period of ten consecutive quarters where Summit produced year over year net loan growth exceeding 20.0 percent. The Bank has been successful in funding the continued asset growth with similar levels of deposit growth in what continues to be a highly competitive deposit gathering environment with growth in total deposits of $118.1 million or 11.6 percent over the last 12 months.

Return on average equity for the first quarter and the trailing four quarters was 10.5 percent and 11.2 percent respectively. Total shareholders’ equity ended the first quarter at $112.2 million, an increase of $13.9 million or 14.2 percent since March 31, 2024. Capital levels remain very strong, supporting the Bank’s consistent asset growth with similarly strong retained earnings which have totaled $54.7 million over the last five years.

Total non-performing assets as of March 31, 2025, declined during the first quarter from 0.20 percent of total assets as of December 31, 2024 to just 0.10 percent of total assets as of the end of the first quarter of 2025 following resolution of a problem loan and receipt of proceeds from the loan’s Small Business Administration federal guarantee.

Summit Bank Group Inc., through its wholly owned subsidiary Summit Bank, maintains offices in Eugene, Central Oregon, and Portland, specializing in providing high-level service to professionals and medium-sized businesses and their owners. The Bank was voted for the fourth year in a row as one of Oregon’s “Top 100 Companies to Work For,” according to Oregon Business Magazine. In 2023, 2024 and 2025, Summit Bank was honored as “Favorite Bank” in the Eugene Register-Guard’s annual Reader’s Choice Awards and “Best Bank” by Central Oregon’s Bend Bulletin. Summit Bank Group Inc. is quoted on the OTCPK under the symbol SBKO.

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 – March 31^st 2025

(in thousands except per share data)			Unaudited				Unaudited				Unaudited
			As of				As of				As of
Summary Statements of Condition			Mar. 31, 2025				Dec. 31, 2024				Mar. 31, 2024
Cash and short term investments			$	147,684			$	130,991			$	88,521
Securities				41,777				49,846				61,388
Loans:
Commercial				324,864				308,939				308,259
Commercial real estate				650,392				652,722				595,437
Other				99,921				92,466				77,337
Loan loss reserve and unearned income				(11,228	)			(11,227	)			(10,449	)
Total net loans				1,063,950				1,042,899				970,585
Property and other assets				30,521				30,905				27,635
Repossessed property				538				457				981
Total assets			$	1,284,470			$	1,255,097			$	1,149,110
Deposits:
Noninterest-bearing demand			$	166,494			$	173,957			$	178,039
Interest-bearing demand				862,451				849,460				700,850
Certificates of deposit				111,732				90,468				143,662
Total deposits				1,140,676				1,113,885				1,022,552
Subordinated debt				18,493				18,484				19,685
Other liabilities				13,124				14,011				8,639
Shareholders' equity				112,177				108,718				98,234
Total liabilities and shareholders' equity			$	1,284,470			$	1,255,097			$	1,149,110
Book value per share			$	14.48			$	14.08			$	12.75
			Unaudited				Unaudited				Unaudited
			For the three months ended				For the three months ended				For the three months ended
Summary Statements of Income			Mar. 31, 2025				Dec. 31, 2024				Mar. 31, 2024
Interest income			$	19,883			$	20,730			$	17,995
Interest expense				(6,401	)			(7,096	)			(5,896	)
Net interest income				13,482				13,634				12,099
Provision for loan losses				(1,953	)			(2,108	)			(2,017	)
Noninterest income				182				123				198
Noninterest expense				(7,728	)			(7,897	)			(6,998	)
Net income before income taxes				3,983				3,752				3,282
Provision for income taxes				(1,059	)			(738	)			(861	)
Net income			$	2,925			$	3,013			$	2,421
Net income per share, basic			$	0.38			$	0.39			$	0.31
Net income per share, fully diluted			$	0.37			$	0.39			$	0.31

 

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

Source: Summit Bank Group