(OTCBB: SBKO) Summit Bank reported net income for the second quarter of $1.35 million or 26 cents per fully diluted share. Earnings for the comparable period one year ago were $1.24 million or 24 cents per fully diluted share. Year to date earnings were $2.59 million or 50 cents per fully diluted share, compared to $2.39 million or 46 cents that the Bank earned during the first six months of 2018, representing an increase of eight percent.
President and Chief Executive Officer Craig Wanichek stated, “We are very encouraged by our ability to grow earnings while simultaneously making a significant investment in our Portland operations. We are experiencing strong acceptance of our relationship-focused style of business banking in the Portland Metro area, and the Bank’s pipeline for loan and deposit activity is strong.” The FDIC this week issued approval for Summit to open a full service branch office, which is scheduled to open on the second floor of the KOIN Center in downtown Portland on August 5.
Summit continues to achieve robust balance sheet growth with total loans and total deposits increasing by 24 percent and 20 percent respectively over the trailing 12 month period. The second quarter of 2019 represented the 17th consecutive quarter during which the Bank achieved year over year growth in total net loans of at least 17 percent. Total net loans as of June 30, 2019, were $389.7 million, representing a $75.7 million increase over the second quarter 2018 total of $314.0 million. Total deposits increased by $67.3 million over the same period. The Bank continues to achieve strong earnings which has supported its balance sheet growth. Total shareholders’ equity at June 30, 2019, was $43.6 million, a $6.6 million or 17.9 percent increase over Summit’s June 30, 2018 total of $37.0 million. “This quarter, Summit Bank brought on several new significant deposit-centered clients,” said Wanichek. “The Bank’s Small Business Administration division also positively impacted the Bank’s non-interest income.”
The Bank continues to hold very low levels of non-performing assets. Total non-performing assets at June 30, 2019 represented just 0.28 percent of total assets, a decrease from 0.69 percent at June 30, 2018.
Also notable for Summit Bank this quarter is the Oregon Bankers Association (OBA), Oregon’s only trade association dedicated to the banking industry and its clients, elected Wanichek Chair of the Association at its annual summer meeting. Wanichek will hold the position until June of 2020.
With offices in Eugene and Bend and a loan production office in downtown Portland, Summit Bank is a business bank that 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. Summit Bank was recognized earlier this year as one of the top 200 Community Banks in America by the American Banking Association. The Bank was also honored as one of the Top 100 Green Companies in Oregon, according to Oregon Business Magazine.
