Summit Bank Group (OTC Pink: SBKO)
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- Q2 2024 Net Income - $2.7 million or $0.35 per fully diluted
share, an increase of $223 thousand or $0.03 per share over the
same period in 2023
- 2024 Year to Date Net Income - $5.1MM or $0.66 per fully
diluted share, an increase of $325 thousand or $0.04 per share over
the same period in 2023.
- Non-recurring gain on retirement of subordinated debt during Q2
2024 increased Net Income by $277 thousand or $0.036 per fully
diluted share.
- Cash and securities total $122.0 million - 10.6 percent of
assets.
- Year over year Net Loan Growth - $180.0 million or 21.9
percent.
- Year over year Deposit Growth - $154.6 million or 17.8
percent.
Summit Bank Group reported net income for the second quarter of
$2.7 million or 35 cents per fully diluted share. The Company
recognized a one time after tax gain of $277 thousand on retirement
of a subordinated note which increased earnings per share by $0.036
for the quarter. Earnings per share for the second quarter and the
year to date, improved over first quarter of 2024 and June 30, 2023
year to date by $0.04.
The Company continues to maintain a highly liquid balance sheet
with cash and available for sale short-term securities of $122.0
million, which represents 10.6 percent of total assets as of June
30, 2024. This total decreased by $27.9 million from the $149.9
million total as of March 31, 2024 as the Company funded $29.6
million in net new loans during the second quarter. The Company
maintains secured borrowing commitments from the Federal Home Loan
Bank and the Federal Reserve Bank with total available borrowing
capacity as of June 30, 2024 of $326 million, an increase from its
December 31 2023 total available of $253 million. Combined, the
Company’s cash and available secured borrowing as of June 30, 2024
total $392 million. This total is 34.0 percent of total assets and
121 percent of total estimated uninsured deposits as of June 30,
2024.
Total net loans reached $1 billion as of June 30, 2024 after
total second quarter net loan growth of $29.6 million, bringing the
trailing 12 month net loan growth total to $180.0 million for an
increase of 21.9 percent over June 30, 2023. The second quarter
marks the 10th consecutive quarter for year over year net loan
growth in excess of 20.0 percent. Total deposits year over year are
up $154.6 million or 17.8 percent with excess cash balances held at
June 30, 2023 deployed to fund the remainder of the increase in net
loans during the most recent 12 months. Total wholesale funding
remained level during the second quarter.
Return on average equity for the second quarter and the trailing
four quarters was 10.3 percent and 10.2 percent respectively. Total
shareholders’ equity ended the second quarter at $101.5 million, an
increase of $11.3 million or 12.5 percent since June 30, 2023. The
Company has produced greater than 10.0 percent return on equity
during all but three quarters over the last eleven years while
growing total net loans at a compounded annual growth rate of 21.8
percent.
Total non-performing assets as of June 30, 2024 have increased
slightly during the second quarter to 0.27 percent of total assets
after ending 2023 and the first quarter of 2024 at 0.22 and 0.20
percent respectively. The majority of the increase in total
non-performing assets over the December 31, 2023 figure consists of
a single SBA guaranteed loan relationship currently in non-accrual
status. An individual allowance for expected credit loss equal to
the amount of the unguaranteed portion of this loan is included in
the June 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 in the portfolio.
Refinance and interest rate risk is limited as only 18 percent of
the portfolio matures prior to 2027,” said Craig Wanichek,
President and CEO. The office segment, which totals $45 million or
just 4.5 percent of total loans, includes no loans secured by
properties in downtown Portland and no loans carry an adverse risk
rating.
The Bank continues to grow loans and deposits in this dynamic
rate environment. “I am grateful for our clients, shareholders,
colleagues and to all of our new clients we have welcomed to Summit
Bank over the first half of the year,” said Wanichek. “Our goal is
to be the business bank of choice in the communities we serve and
we appreciate the growing list of clients who have moved their
banking relationships to Summit.”
Summit Bank received recognition during the second quarter as
being one of the top-performing banks in the nation by the American
Banker, securing the 63rd spot on the list of the 100 Top
Performing Banks. There are 4,049 commercial banks and 565 savings
and loan associations in the U.S. that are insured by the Federal
Deposit Insurance Corporation (FDIC). “Our ranking among the
nation’s most esteemed financial institutions is a testament to the
hard work and dedication of our team” said Wanichek. The Bank made
the Oregon Business Magazine list of the Top 100 Green Businesses
in Oregon, for the third year in a row.
About Summit Bank Group,
Inc.
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, 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 – June 30th 2024
(in thousands except per share data) Unaudited Unaudited Unaudited
As of As of As of Summary Statements of
Condition Jun. 30, 2024 Dec. 31, 2023 Jun. 30,
2023 Cash and short term investments
$
65,857
$
71,265
$
113,913
Securities
56,096
63,637
68,197
Loans: Commercial
311,540
283,870
263,759
Commercial real estate
608,581
580,801
495,941
Other
90,672
61,002
69,278
Loan loss reserve and unearned income
(10,654
)
(10,511
)
(8,828
)
Total net loans
1,000,140
915,162
820,149
Property and other assets
28,163
27,634
25,696
Repossessed property
958
672
690
Total assets
$
1,151,213
$
1,078,370
$
1,028,646
Deposits: Noninterest-bearing demand
$
156,954
$
175,717
$
171,349
Interest-bearing demand
724,928
687,863
643,023
Certificates of deposit
139,877
53,363
52,826
Total deposits
1,021,759
916,943
867,197
Subordinated debt
18,464
19,675
19,654
Other liabilities
9,522
46,097
51,623
Shareholders' equity
101,469
95,655
90,172
Total liabilities and shareholders' equity
$
1,151,213
$
1,078,370
$
1,028,646
Book value per share
$
13.15
$
12.46
$
11.75
Unaudited Unaudited Unaudited Unaudited
For the six months
ended For the six months ended For the three months
ended For the three months ended Summary Statements
of Income Jun. 30, 2024 Jun. 30, 2023 Jun. 30,
2024 Jun. 30, 2023 Interest income
$
37,009
$
30,713
$
19,014
$
15,894
Interest expense
(12,668
)
(8,535
)
(6,772
)
(4,658
)
Net interest income
24,341
22,178
12,242
11,236
Provision for loan losses
(3,852
)
(3,754
)
(1,835
)
(1,781
)
Noninterest income
831
563
633
134
Noninterest expense
(14,356
)
(12,479
)
(7,358
)
(6,225
)
Net income before income taxes
6,964
6,508
3,682
3,365
Provision for income taxes
(1,841
)
(1,711
)
(980
)
(887
)
Net income
$
5,122
$
4,797
$
2,701
$
2,478
Net income per share, basic
$
0.67
$
0.63
$
0.35
$
0.32
Net income per share, fully diluted
$
0.66
$
0.62
$
0.35
$
0.32
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240717095310/en/
Craig Wanichek, President & Chief Executive Officer
541-684-7500