Summit Bank reported net income for the first quarter of $580 thousand or 24 cents per fully diluted share. Comparable earnings for the first quarter before the impact of startup expenses associated with the Bank’s Central Oregon office in Bend were $648 thousand or 27 cents per share, a slight increase per share over Q1 2015 earnings of $569 thousand or 26 cents per fully diluted share.
Total net interest and non-interest income for the first quarter increased from $2.5 million in 2015 to $3.0 in 2016, an increase of 17.1 percent. Fully diluted earnings per share for the trailing four quarters totaled $1.19.
“We are pleased to report a modest increase in net income for Q1 this year compare to 2015,” said Craig Wanichek, president and CEO. “Our higher net interest income was offset by higher than normal loan write-offs in our equipment lending portfolio and the investment in the start-up of our Central Oregon Office. Our ROE of 10.40 percent remains strong relative to other banks in the region.”
The Bank continues to experience significant growth in its loan and deposit portfolios. Total net loans as of March 31, 2016, were $192.5 million, representing a 26.9 percent increase over the first quarter 2015 total of $151.7 million. Total deposits increased by $49.3 million or 29.2 percent over the previous year.
“We are pleased to report growth of loans by 27 percent from last year,” said Wanichek. “This increase is building a solid foundation for growing our earnings. Likewise, to generate growth in deposits of 29 percent is reflective of the strength in our clients and bringing on new business during the quarter.”
Solid earnings over the last four quarters, combined with a successful capital offering during 2015 have allowed Summit to increase its already strong levels of regulatory capital simultaneously with strong loan and deposit growth. Total shareholders’ equity at March 31, 2016, was $22.4 million, compared to the Bank’s $17.6 million total as of March 31, 2015.
“Our cash and securities portfolio of $42 million is larger than it has ever been,” said Scott Goldstein, CFO. “Our capital has also grown 27 percent from last year at this time. At the same time, our non-performing assets have remained stable at 0.4 percent of total assets.”
Headquartered in Eugene at 96 E Broadway, the Bank specializes in providing high-level service to professionals and medium-sized businesses and their owners. Summit Bank is quoted on the NASDAQ Over-the-Counter Bulletin Board as SBKO.
(Photo above: (L-R) Ken Streater, NAI Cascade; Alison Huycke, Francis, Hansen, & Martin LLP; John Boylen, Summit Bank; Alison Hohengarten, Francis, Hansen, & Martin LLP; Gary O’Connell, Summit Bank and Heather Johnson, Oregon Media & Bend Magazine | Photo by Krystal Marie Collins)
