Summit Bank Group Reports Record 2022 4th Quarter Earnings

Rhea-AI Summary

Summit Bank Group (OTC Pink: SBKO) achieved a record net income of $3.84 million ($0.50 per diluted share) for Q4 2022, a 27% increase from Q4 2021. The annual net income reached $13.55 million ($1.76 per diluted share), up 25% year-over-year. Net loan growth was $131.3 million (21.6%) and total deposits increased by $62.4 million (7.9%). Return on average equity stood at 17.3% for 2022. Despite a slight decrease in deposits of $13.5 million (1.6%) in Q4, the bank maintained strong profitability. Summit Bank's expansion into Washington County reflects its commitment to serve small and medium-sized businesses.

Positive

• Record Q4 net income of $3.84 million, up 27% from Q4 2021.
• Total net income for 2022 reached $13.55 million, a 25% increase year-over-year.
• Net loan growth of $131.3 million or 21.6% excluding PPP loans.
• Return on average equity at 17.3% for 2022, consistent profitability.
• Expansion into Washington County to enhance service to local businesses.

Negative

• Deposit decrease of $13.5 million or 1.6% in Q4 2022, indicating potential liquidity concerns.

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

• Q4 2022 Net Income – a record $3.84 million or $0.50 per fully diluted share
• Year to date Net Income – a record $13.55 million or $1.76 per fully diluted share
• Year over year Net Loan Growth - $131.3 million or 21.6 percent (excluding PPP loans)
• Year over year Deposit Growth - $62.4 million or 7.9 percent over December 31 2021

Summit Bank Group reported record quarterly net income for the fourth quarter of $3.84 million or 50 cents per fully diluted share. Comparable earnings for the fourth quarter of 2021 were $3.0 million or 40 cents per fully diluted share, representing increases of 27 percent and 26 percent to earnings and earnings per fully diluted share, respectively. Year to date net income for 2022 was $13.55 million or $1.76 per fully diluted share, also a record and representing an increase of $2.68 million or 25 percent over the similar period during 2021.

Summit successfully concluded its PPP loan program during 2022 with total PPP-related income during the year contributing just 3 cents per share compared to fiscal 2021, where PPP interest and fee income represented 36 cents per share. Fully diluted earnings per share growth, excluding PPP related income, for 2022 over 2021 was 67 cents for an increase of 63 percent.

“Growing loans over 21% this year in a very dynamic interest rate environment is the result of our team working closely with clients, being nimble and making decisions locally,” said Craig Wanichek, president and CEO. “Delivering on our mission of being Oregon’s community business bank of choice has been our primary objective in 2022. With a proven business model that has delivered double-digit annual growth over the last nine years, we feel the timing is right for Summit Bank to expand our relationship-based approach to small and medium sized businesses, professional and medical firms and nonprofits to Washington County.” Summit Bank has opened a loan and deposit production office in Washington County at 1915 NE Stucki Avenue Suite 155, Hillsboro.

Total net loans as of December 31, 2022, were $740.1 million. Net loans grew by $31.8 million or 4.5 percent during the fourth quarter and by $131.3 million or 21.6 percent since December 31, 2021, excluding PPP loans. Deposit growth has slowed during 2022 as clients have deployed excess cash reserves accumulated during the pandemic. Total deposits decreased during the fourth quarter by $13.5 million or 1.6 percent while still increasing by $62.4 million or 7.9 percent since December 31, 2021.

Concurrent with the rapid balance sheet growth, the Company continues to produce strong and consistent profitability with return on average equity of 17.3 percent during fiscal 2022 and an 18.5 percent return on average equity during the fourth quarter of 2022. Return on average equity was 15.8 percent for the 2021 fiscal year and 16.6 percent during Q4 2021. Summit Bank is currently in its tenth consecutive year producing a return on equity in excess of 10 percent.

The Company’s strong earnings continue to support its asset growth with total shareholders’ equity ending the fourth quarter at $84.6 million, an increase of $10.4 million or 14.0 percent since December 31, 2021. Summit Bank Group’s total equity capital as of December 31, 2022 has increased by $37.8 million from $46.8 million at December 31, 2019, resulting from a combination of a successful common stock offering during 2021 and $32.4 million in retained earnings over the three year period. Following a period of historic and unprecedented elevated liquidity during the pandemic, liquidity levels eased during the fourth quarter of 2022. Cash and short term investments as of December 31, 2022 total $138.5 million or 18.7 percent of total net loans.

The Bank continues to hold very low levels of non-performing assets with total non-performing assets at December 31, 2022 representing just 0.11 percent of total assets, up slightly from September 30, 2022 and December 31, 2021 levels of 0.07 percent and 0.05 percent respectively.

Summit Bank Group Inc., through its wholly owned subsidiary Summit Bank, maintains offices in Eugene, Bend 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. Summit Bank, for three years in a row, has been ranked as a Top 100 Place to Work in Oregon, according to Oregon Business Magazine.

QUARTERLY FINANCIAL REPORT – DECEMBER 31st 2022
(in thousands except per share data)		Unaudited				Unaudited
		As of				As of
Summary Statements of Condition		Dec. 31, 2022				Dec. 31, 2021
Cash and short term investments		$	138,512			$	195,145
Securities			66,900				71,328
Loans:
Commercial			236,639				185,440
Commercial real estate			457,570				392,071
Other			54,274				49,206
Loan loss reserve and unearned income			(8,337	)			(8,092	)
Total net loans			740,145				618,625
Property and other assets			23,448				17,384
Repossessed property			343				29
Total assets		$	969,348			$	902,510
Deposits:
Noninterest-bearing demand		$	181,489			$	212,746
Interest-bearing demand			631,026				570,609
Certificates of deposit			44,644				11,389
Total deposits			857,159				794,744
Subordinated debt			19,634				19,593
Other liabilities			7,932				13,966
Shareholders' equity			84,624				74,208
Total liabilities and shareholders' equity		$	969,348			$	902,510
Book value per share		$	11.07			$	9.80
		Unaudited				Unaudited				Unaudited				Unaudited
		For the twelve months ending				For the twelve months ending				For the three months ending				For the three months ending
Summary Statements of Income		Dec. 31, 2022				Dec. 31, 2021				Dec. 31, 2022				Dec. 31, 2021
Interest income		$	45,450			$	34,457			$	14,046			$	9,506
Interest expense			(4,208	)			(651	)			(2,295	)			(211	)
Net interest income			41,242				33,806				11,751				9,295
Provision for loan losses			(4,661	)			(2,206	)			(1,739	)			(339	)
Noninterest income			2,725				1,943				643				569
Noninterest expense			(21,278	)			(18,947	)			(5,738	)			(5,510	)
Net income before income taxes			18,029				14,597				4,918				4,015
Provision for income taxes			(4,476	)			(3,726	)			(1,074	)			(989	)
Net income		$	13,553			$	10,871			$	3,844			$	3,026
Net income per share, basic		$	1.78			$	1.44			$	0.50			$	0.40
Net income per share, fully diluted		$	1.76			$	1.42			$	0.50			$	0.40

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20230125005177/en/

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

Source: Summit Bank Group

FAQ

What were Summit Bank Group's earnings for Q4 2022?

Summit Bank Group reported a record net income of $3.84 million, or $0.50 per fully diluted share, for Q4 2022.

How does Summit Bank Group's 2022 net income compare to 2021?

The year-to-date net income for 2022 was $13.55 million, up 25% from $10.87 million in 2021.

What was the net loan growth for Summit Bank Group in 2022?

Summit Bank Group achieved a net loan growth of $131.3 million, or 21.6%, in 2022, excluding PPP loans.

What is the stock symbol for Summit Bank Group?

The stock symbol for Summit Bank Group is SBKO.

What are the return on equity figures for Summit Bank Group in 2022?

Summit Bank Group reported a return on average equity of 17.3% for the year 2022.