Summit Bank Group (OTC Pink: SBKO):
- Q3 2023 Net Income - $2.44 million or $0.32 per fully diluted share equaling Q2 2023 and a $0.02 or 6.7 percent improvement over Q1 2023.
- Cash and securities total $163 million – 15.3 percent of assets
- Year over year Net Loan Growth - $167.2 million or 23.6 percent
- Year over year Deposit Growth - $37.3 million or 4.3 percent
Summit Bank Group reported net income for the third quarter of $2.44 million or 32 cents per fully diluted share, equaling the earnings per share result for Q2 2023 and representing an increase of 6.7 percent or 2 cents per fully diluted share over the first quarter of 2023. Comparable earnings for the third quarter of 2022 were $3.56 million or 46 cents per fully diluted share. Higher loan charge-off activity and losses on sale of collateral in the Bank’s Small Commercial Equipment lending unit reduced earnings per share during the third quarter.
The Bank continues to maintain a highly liquid balance sheet with cash and Available for Sale (AFS) short-term securities of $163 million, which represents 15.3 percent of total assets as of September 30th, 2023. Additionally, the Bank maintains secured borrowing commitments from the Federal Home Loan Bank and the Federal Reserve Bank that, when combined with the cash and AFS securities, total $327 million. This total is 30.7 percent of total assets and 115 percent of total estimated uninsured deposits as of September 30th, 2023.
“Summit Bank remains in a very well-capitalized and a robust liquidity position,” said Craig Wanichek, President and CEO. “While the landscape for deposits continues to be very competitive and we were pleased to report an overall growth in deposits of 4.7 percent this quarter. We were able to meaningfully increase deposits in the third quarter within our existing client base and through the acquisition of several notable new relationships.”
Total net loans as of September 30th, 2023, were $875.5 million which represented growth of $55.3 million or 6.7 percent during the third quarter and by $167.2 million or 23.6 percent since September 30th, 2022. “We are meeting the demands of our clients and safely and soundly building our loan portfolio. Other than our Equipment Finance Division, which is faced with a difficult trucking market, credit quality remains very good with no past dues reported in our traditional lending units.”
The Bank has been successful in retaining client deposits with total client deposits increasing by $40.5 million or 4.7 percent, during the quarter and $37.3 million or 4.3 percent during the trailing twelve months. Return on average equity for the third quarter and year to date was 10.7 percent and 10.1 percent respectively. The Company is currently in its 11th consecutive year producing a return on equity in excess of 10.0 percent.
The Company’s strong earnings continue to support its asset growth with total shareholders’ equity ending the third quarter at $92.6 million, an increase of $12.3 million or 15.3 percent since September 30th, 2022. The Company’s total retained earnings as of September 30th, 2023, has more than doubled during the last three years, increasing by $35.2 million from $30.4 million as of September 30th, 2020 to $65.6 million currently.
The Bank continues to hold very low levels of non-performing assets with total non-performing assets at September 30th, 2023 representing just 0.13 percent of total assets, unchanged from the previous quarter and up slightly from 0.04 percent as of September 30th, 2022.
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. The bank was voted this year as one of Oregon’s “Top 100 Companies to Work For,” according to Oregon Business Magazine. The Bank was voted this quarter 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 NASDAQ Over-the-Counter Bulletin Board as SBKO.
QUARTERLY FINANCIAL REPORT – SEPTEMBER 30th, 2023 |
||||||||||||||||
| (in thousands except per share data) | Unaudited | Unaudited | ||||||||||||||
| As of | As of | |||||||||||||||
| Summary Statements of Condition | Sep. 30, 2023 | Sep. 30, 2022 | ||||||||||||||
| Cash and short term investments | $ |
96,222 |
|
$ |
180,080 |
|
||||||||||
| Securities |
|
67,047 |
|
|
67,286 |
|
||||||||||
| Loans: | ||||||||||||||||
| Commercial |
|
260,634 |
|
|
219,100 |
|
||||||||||
| Commercial real estate |
|
551,049 |
|
|
437,193 |
|
||||||||||
| Other |
|
73,408 |
|
|
60,282 |
|
||||||||||
| Loan loss reserve and unearned income |
|
(9,615 |
) |
|
(8,274 |
) |
||||||||||
| Total net loans |
|
875,475 |
|
|
708,301 |
|
||||||||||
| Property and other assets |
|
26,366 |
|
|
20,137 |
|
||||||||||
| Repossessed property |
|
1,009 |
|
|
242 |
|
||||||||||
| Total assets | $ |
1,066,120 |
|
$ |
976,046 |
|
||||||||||
| Deposits: | ||||||||||||||||
| Noninterest-bearing demand | $ |
183,329 |
|
$ |
212,742 |
|
||||||||||
| Interest-bearing demand |
|
683,258 |
|
|
629,475 |
|
||||||||||
| Certificates of deposit |
|
41,417 |
|
|
28,478 |
|
||||||||||
| Total deposits |
|
908,004 |
|
|
870,696 |
|
||||||||||
| Subordinated debt |
|
19,665 |
|
|
19,624 |
|
||||||||||
| Other liabilities |
|
45,900 |
|
|
5,473 |
|
||||||||||
| Shareholders' equity |
|
92,551 |
|
|
80,254 |
|
||||||||||
| Total liabilities and shareholders' equity | $ |
1,066,120 |
|
$ |
976,046 |
|
||||||||||
| Book value per share | $ |
12.05 |
|
$ |
10.51 |
|
||||||||||
| Unaudited | Unaudited | Unaudited | Unaudited | |||||||||||||
| For the nine months ended |
For the nine months ended |
For the three months ended |
For the three months ended |
|||||||||||||
| Summary Statements of Income | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | ||||||||||||
| Interest income | $ |
47,603 |
|
$ |
31,404 |
|
$ |
16,890 |
|
$ |
11,963 |
|
||||
| Interest expense |
|
(13,413 |
) |
|
(1,913 |
) |
|
(4,879 |
) |
|
(1,178 |
) |
||||
| Net interest income |
|
34,190 |
|
|
29,491 |
|
|
12,011 |
|
|
10,785 |
|
||||
| Provision for loan losses |
|
(6,082 |
) |
|
(2,922 |
) |
|
(2,328 |
) |
|
(1,376 |
) |
||||
| Noninterest income |
|
770 |
|
|
2,082 |
|
|
207 |
|
|
688 |
|
||||
| Noninterest expense |
|
(19,065 |
) |
|
(15,539 |
) |
|
(6,586 |
) |
|
(5,273 |
) |
||||
| Net income before income taxes |
|
9,813 |
|
|
13,112 |
|
|
3,305 |
|
|
4,825 |
|
||||
| Provision for income taxes |
|
(2,858 |
) |
|
(3,402 |
) |
|
(861 |
) |
|
(1,262 |
) |
||||
| Net income | $ |
7,241 |
|
$ |
9,709 |
|
$ |
2,444 |
|
$ |
3,563 |
|
||||
| Net income per share, basic | $ |
0.94 |
|
$ |
1.27 |
|
$ |
0.32 |
|
$ |
0.47 |
|
||||
| Net income per share, fully diluted | $ |
0.93 |
|
$ |
1.26 |
|
$ |
0.32 |
|
$ |
0.46 |
|
||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20231018640822/en/
Contacts
Craig Wanichek, President & Chief Executive Officer, 541-684-7500
