Summit Bank Group Reports 2022 2nd Quarter Earnings

Jul 27th, 2022 13:00 EST

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

  • Q2 2022 Net Income - $3.4 million or $0.44 per fully diluted share
  • Year to date Net Income - $6.1 million or $0.80 per fully diluted share
  • Trailing twelve months Net Income - $12.1 million or $1.58 per fully diluted share
  • Year over year Net Loan Growth - $111.8 million or 20.4 percent (excluding PPP loans)
  • Minimal remaining PPP loans outstanding - $148 thousand out of $180.9 million total originations
  • Year over year Deposit Growth - $132.7 million or 18.2 percent over June 30, 2021

Summit Bank Group reported net income for the second quarter of $3.42 million or 44 cents per fully diluted share. Comparable earnings for the second quarter of 2021 were $2.54 million or 33 cents per fully diluted share, representing an increase of 33 percent to earnings per fully diluted share. Year to date net income for 2022 was $6.15 million or 80 cents per fully diluted share representing an increase of $1.26 million or 26 percent over the similar period during 2021. PPP loan related income in total comprised only 0.1 percent of total Company net interest and non-interest income during the 2nd quarter of 2022 compared to 9.0 percent during Q2 2021.

“We were pleased to achieve strong loan growth in all of our markets, which significantly contributed to the results of the quarter,” said Craig Wanichek, President and CEO. “In addition, we have worked with clients and prospects to manage through a rate period that is unprecedented in recent years.”

Total net loans as of June 30, 2022, were $659.4 million. Net loans excluding PPP loans grew by $25.2 million or 4.0 percent during the second quarter and by $111.8 million or 20.4 percent since June 30, 2021. Deposit growth also remains robust with total deposits increasing by $30.4 million or 3.7 percent during the second quarter and by $132.7 million or 18.2 percent since June 30, 2021. The Bank’s non PPP lending activity during the pandemic has allowed the Company to maintain its strong and consistent profitability with return on average equity of 18.0 percent during Q2 2022 following 14.5 percent during Q1 2022 and 15.8 percent for the 2021 fiscal year. The Company is currently in its 10th consecutive year producing a return on equity in excess of 10 percent.

“The delivery of tailored, local banking solutions to our clients and our convenient and relationship-based approach are helping Summit grow existing and new relationships,” said Wanichek. “Also, through the end of second quarter, 99.9% of the $181 million in PPP loans Summit Bank provided our clients to help during the pandemic, have received complete loan forgiveness.”

The Company’s strong earnings continue to support asset growth with total shareholders’ equity ending the second quarter at $77.6 million, an increase of $9.5 million or 14.0 percent since June 30, 2021. Liquidity remains extremely healthy with cash and short term investments as of June 30, 2022 at $216.0 million or 32.8 percent of total net loans.

The Bank continues to hold very low levels of non-performing assets with total non-performing assets at June 30, 2022 representing just 0.04 percent of total assets, down from 0.05 percent as of March 31, 2022 and 0.08 percent as of June 30, 2021.

About Summit Bank

Summit Bank Group Inc., through its wholly-owned subsidiary Summit Bank, is a leading independent community bank providing outstanding service to professionals and businesses within various industries including manufacturing, healthcare, public entities, and nonprofits. With offices in Eugene, Central Oregon, and downtown Portland, Summit Bank specializes in high-touch personal banking and local decision-making. Summit Bank Group Inc. is quoted on the NASDAQ Over-the-Counter Bulletin Board as SBKO. In 2021, Summit Bank was named the Top Small Business Administration (SBA) Community Bank Lender in the State of Oregon, and in 2022, has been named to Oregon Business Magazine’s Top 100 Best Places to Work.

SUMMIT BANK GROUP INC. CONSOLIDATED QUARTERLY FINANCIAL REPORT – JUNE 2022

(in thousands except per share data) Unaudited Unaudited
As of As of
Summary Statements of Condition Jun. 30, 2022 Jun. 30, 2021
Cash and short term investments

$

216,049

 

$

145,336

 

Securities

 

69,964

 

 

31,613

 

Loans:
Commercial

 

200,711

 

 

226,087

 

Commercial real estate

 

407,544

 

 

365,160

 

Other

 

59,097

 

 

37,776

 

Loan loss reserve and unearned income

 

(7,959

)

 

(10,236

)

Total net loans

 

659,393

 

 

618,787

 

Property and other assets

 

18,869

 

 

15,452

 

Repossessed property

 

129

 

 

106

 

Total assets

$

964,404

 

$

811,294

 

 
Deposits:
Noninterest-bearing demand

$

227,437

 

$

187,585

 

Interest-bearing demand

 

619,392

 

 

528,801

 

Certificates of deposit

 

13,991

 

 

11,687

 

Total deposits

 

860,821

 

 

728,073

 

Subordinated debt

 

19,613

 

 

-

 

Other liabilities

 

6,328

 

 

15,093

 

Shareholders' equity

 

77,642

 

 

68,128

 

Total liabilities and shareholders' equity

$

964,404

 

$

811,294

 

 
Book value per share

$

10.16

 

$

9.01

 

Unaudited Unaudited Unaudited Unaudited
For the six months ending For the six months ending For the three months ending For the three months ending
Summary Statements of Income Jun. 30, 2022 Jun. 30, 2021 Jun. 30, 2022 Jun. 30, 2021
Interest income

$

19,442

 

$

15,935

 

$

10,320

 

$

8,181

 

Interest expense

 

(735

)

 

(307

)

 

(433

)

 

(129

)

Net interest income

 

18,707

 

 

15,628

 

 

9,887

 

 

8,052

 

Provision for loan losses

 

(1,546

)

 

(1,136

)

 

(846

)

 

(495

)

Noninterest income

 

1,394

 

 

881

 

 

725

 

 

478

 

Noninterest expense

 

(10,266

)

 

(8,767

)

 

(5,217

)

 

(4,606

)

Net income before income taxes

 

8,289

 

 

6,606

 

 

4,550

 

 

3,429

 

Provision for income taxes

 

(2,140

)

 

(1,714

)

 

(1,129

)

 

(890

)

Net income

$

6,148

 

$

4,892

 

$

3,421

 

$

2,539

 

 
Net income per share, basic

$

0.81

 

$

0.65

 

$

0.45

 

$

0.34

 

Net income per share, fully diluted

$

0.80

 

$

0.64

 

$

0.44

 

$

0.33

 

 

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