Summit Bank Reports 2021 3rd Quarter Earnings

Rhea-AI Summary

Summit Bank (OTC Pink: SBKO) reported Q3 2021 net income of $2.92 million, or $0.38 per diluted share, marking a 41.9% increase year-over-year. Year-to-date net income reached $7.84 million with a diluted share of $1.03, up 76.3%. Total net loans grew by 20.2% to $619.6 million, excluding PPP loans. Deposit growth was robust at 31.9% year-over-year, totaling $826.5 million. Return on equity stood at 16.8% in Q3, showcasing strong profitability amid ongoing expansion.

Positive

• Net income increased by 41.9% year-over-year in Q3 2021.
• Year-to-date net income rose 76.3% compared to the same period in 2020.
• Total net loans grew by 20.2% over the trailing 12 months, excluding PPP loans.
• Deposit growth was 31.9% year-over-year, indicating strong customer confidence.
• Return on equity was 16.8% for Q3 2021, maintaining profitability.

Negative

• None.

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

• Q3 2021 Net Income - $2.92 million or $0.38 per fully diluted share.
• Year to date Net Income - $7.84 million or $1.03 per fully diluted share.
• Trailing 12 month Net Income - $11.32 million or $1.49 per fully diluted share.
• Trailing 12 month Net Loan Growth - $97.2 million or 20.2 percent (excluding PPP loans).
• PPP loans outstanding - $40.4 million out of $180.9 million total originations during 2020 and 2021.
• Q3 2021 Three month deposit growth - $98.5 million or 13.5 percent over Q2 2021.

Earnings for Q3 2021 exceeded the similar period last year by $863,000, an increase of 41.9 percent or $0.11 per fully diluted share. Year to date earnings are up 76.3 percent, which is an increase of $0.40 over the same period in 2020. The earnings improvement was driven by sharply lower provision for loan losses compared to 2020 and strong growth in the Bank’s loan portfolio, excluding Paycheck Protection Program (PPP) activity, as well as ongoing fee income from the Bank’s PPP loans.

“We are pleased to see that signs are continuing to point to an economic resurgence for our clients,” says President & CEO Craig Wanichek. “We continued to have strong loan activity during the third quarter. In addition, our relationship banking model is proving consistently valuable – we know our clients. We on-boarded several new significant relationships this year, which has resulted in the growth of core deposits and loans. Our bankers are out visiting with our clients to address their evolving needs as the economy returns to normal and demand for business financing grows.”

Total net loans as of September 30 2021, were $619.6 million, which includes $40.4 million of PPP loan balances. Net loans excluding PPP loans grew by $31.7 million or 5.8 percent during the quarter and by $97.2 million or 20.2 percent since September 30, 2020. Deposit growth also remains extremely high with total deposits increasing by $200.1 million or 31.9 percent over the trailing 12 month period. The Bank has been successful in maintaining strong and consistent profitability concurrent with its recent rapid balance sheet growth with return on average equity of 16.8 percent during Q3 2021 following 15.2 percent during Q2 2021 and 14.3 percent for the 2020 fiscal year. The Bank is currently in its ninth consecutive year yielding a return on equity in excess of 10 percent.

Summit’s continued robust earnings have supported its asset growth during the quarter and thus the Bank’s capital position remains strong, with total shareholders’ equity ending the quarter at $71.2 million, an increase of $3.0 million over the last three months and an increase of $11.6 million over the last 12 months. Liquidity remains extremely high with cash and short term investments as of September 30, 2021 at $247.4 million or 39.9 percent of total net loans.

The Bank continues to hold very low levels of non-performing assets with total non-performing assets at September 30, 2021 representing just 0.05 percent of total assets, down from 0.26 percent and 0.08 percent at December 31, 2020 and June 30, 2021 respectively.

Summit Bank, with offices in Eugene/Springfield, Central Oregon and the Portland Metropolitan area, specializes in providing high-level service to professionals and medium-sized businesses and their owners. Summit was recognized in 2020 as the Top Small Business Administration (SBA) Community Bank Lender in the State of Oregon. Summit Bank is quoted on the NASDAQ Over-the-Counter Bulletin Board as SBKO.

QUARTERLY FINANCIAL REPORT – SEPTEMBER 2021

(in thousands except per share data)		Unaudited				Unaudited
		As of				As of
Summary Statements of Condition		Sep. 30, 2021				Sep. 30, 2020
Cash and short term investments		$	247,377			$	130,266
Securities			30,282				12,478
Loans:
Commercial			206,838				249,055
Commercial real estate			373,745				321,577
Other			48,201				42,613
Loan loss reserve and unearned income			(9,163	)			(12,237	)
Total net loans			619,621				601,009
Property and other assets			15,503				14,712
Repossessed property			49				259
Total assets		$	912,832			$	758,725
Deposits:
Noninterest-bearing demand		$	219,488			$	165,527
Interest-bearing demand			595,495				434,133
Certificates of deposit			11,546				26,802
Total deposits			826,529				626,461
Other liabilities			15,132				72,711
Shareholders' equity			71,171				59,552
Total liabilities and shareholders' equity		$	912,832			$	758,725
Book value per share		$	9.41			$	7.93
		Unaudited				Unaudited				Unaudited				Unaudited
		For the nine months ending				For the nine months ending				For the three months ending				For the three months ending
Summary Statements of Income		Sep. 30, 2021				Sep. 30, 2020				Sep. 30, 2021				Sep. 30, 2020
Interest income		$	24,951			$	20,959			$	9,016			$	7,020
Interest expense			(440	)			(1,115	)			(133	)			(274	)
Net interest income			24,511				19,844				8,883				6,746
Provision for loan losses			(1,867	)			(3,281	)			(731	)			(782	)
Noninterest income			1,374				864				493				400
Noninterest expense			(13,436	)			(11,478	)			(4,690	)			(3,676	)
Net income before income taxes			10,582				5,949				3,955				2,688
Provision for income taxes			(2,747	)			(1,506	)			(1,033	)			(629	)
Net income		$	7,835			$	4,444			$	2,922			$	2,059
Net income per share, basic		$	1.04			$	0.63			$	0.39			$	0.27
Net income per share, fully diluted		$	1.03			$	0.63			$	0.38			$	0.27

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20211020005275/en/

Craig Wanichek, President & Chief Executive Officer

541-684-7500

Source: Summit Bank

FAQ

What were Summit Bank's net income figures for Q3 2021?

Summit Bank reported a net income of $2.92 million for Q3 2021.

How did Summit Bank's earnings for 2021 compare to 2020?

Year-to-date earnings for Summit Bank increased by 76.3% compared to the same period in 2020.

What is the total loan growth for Summit Bank excluding PPP loans?

Total net loan growth for Summit Bank, excluding PPP loans, was 20.2%.

What was the return on equity for Summit Bank in Q3 2021?

The return on equity for Summit Bank in Q3 2021 was 16.8%.

How much did Summit Bank's deposits increase year-over-year?

Deposits grew by 31.9% year-over-year, totaling $826.5 million.