EUGENE, Ore.--(BUSINESS WIRE)--Summit Bank (OTCBB:SBKO) reported net income for the fourth quarter of $647 thousand or 27 cents per fully diluted share. Comparable earnings for the fourth quarter before the impact of startup expenses associated with the Bank’s Central Oregon office in Bend were $779 thousand or 33 cents per share, an increase of 3 cents per share over Q4 2014’s earnings of $675 thousand or 30 cents per fully diluted share. Fiscal year earnings were $2.74 million or $1.20 per fully diluted share, representing a 9.0 percent increase over the $1.10 per share that the Bank earned during 2014. 2015 earnings before the impact of the Central Oregon startup activity were $1.32 per share. Non-interest income in 2015 continued to be a significant driver of the Bank’s profitability, increasing from $1.2 million in 2014 to $1.5 million in 2015, an increase of 32%. Summit’s new Central Oregon office in Bend, which opened in Q3, finished the fiscal year ahead of projections for asset growth and operating performance.
“We are proud of our results this year and expect that our 1.3% return on assets and 14.3% return on equity will again place Summit in the top of our peer group,” said Craig Wanichek, president and CEO. “These strong results were achieved during a year when we made a large investment in our new Central Oregon office.”
Summit continues to achieve robust loan and deposit growth in both of its Eugene/Springfield and Central Oregon market areas. Total net loans as of December 31, 2015, were $184.4 million, representing a 25.4 percent increase over the fourth quarter 2014 total of $147.0 million. Total deposits increased by $52.0 million or 33.0 percent over the previous year, which further strengthened the Bank’s liquidity position as evidenced by cash and marketable securities increasing from $22.9 million as of December 31, 2014, to $39.2 million as of December 31st 2015.
“Our outstanding growth in loans and deposits was the reflection of the strength of our current clients who also had successful years, as well as Summit’s ability to add significant new banking relationships during 2015,” said Craig Wanichek, president and CEO.
Strong earnings over the last four quarters combined with new capital resulting from the Bank’s recent common stock offering have allowed Summit to increase its already strong levels of regulatory capital. Total shareholders’ equity at December 31, 2015, was $21.8 million, an increase of 29.1% over Summit’s December 31, 2014, total of $16.8 million.
The Bank continues to hold very low levels of non-performing assets. Total non-performing assets at December 31, 2015, consisted primarily of one parcel of other real estate owned and represented just 0.5 percent of total assets, up slightly from 0.4 percent at December 31, 2014.
“Summit is pleased with its capital level and is in a very strong liquidity position,” said Scott Goldstein, CFO. “The small increase in non-performing assets is related to our Equipment Finance Group.”
Summit Bank, with offices in Eugene and Bend, 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.
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QUARTERLY FINANCIAL REPORT – DECEMBER 2015 |
||||||||||
| (in thousands except per share data) | Unaudited | Unaudited | ||||||||
| As of | As of | |||||||||
| Summary Statements of Condition | Dec. 31, 2015 | Dec. 31, 2014 | ||||||||
| Cash and short term investments | $ | 34,389 | $ | 17,986 | ||||||
| Securities | 6,295 | 6,284 | ||||||||
| Loans: | ||||||||||
| Commercial | 60,685 | 52,301 | ||||||||
| Commercial real estate | 103,923 | 80,640 | ||||||||
| Other | 23,183 | 16,790 | ||||||||
| Loan loss reserve and unearned income | (3,382 | ) | (2,721 | ) | ||||||
| Total net loans | 184,409 | 147,010 | ||||||||
| Property and other assets | 10,223 | 7,263 | ||||||||
| Repossessed property | 988 | 723 | ||||||||
| Total assets | $ | 236,305 | $ | 179,266 | ||||||
| Deposits: | ||||||||||
| Noninterest-bearing demand | $ | 59,410 | $ | 49,079 | ||||||
| Interest-bearing demand | 132,601 | 93,200 | ||||||||
| Certificates of deposit | 17,718 | 15,447 | ||||||||
| Total deposits | 209,729 | 157,726 | ||||||||
| Other liabilities | 4,822 | 4,692 | ||||||||
| Shareholders' equity | 21,754 | 16,848 | ||||||||
| Total liabilities and shareholders' equity | $ | 236,305 | $ | 179,266 | ||||||
| Book value per share | $ | 9.30 | $ | 7.77 | ||||||
| Unaudited | Unaudited | |||||||||
| For the twelve | For the twelve | |||||||||
| months ending | months ending | |||||||||
| Summary Statements of Income | Dec. 31, 2015 | Dec. 31, 2014 | ||||||||
| Interest income | $ | 10,656 | $ | 8,522 | ||||||
| Interest expense | (318 | ) | (247 | ) | ||||||
| Net interest income | 10,338 | 8,275 | ||||||||
| Provision for loan losses | (977 | ) | (463 | ) | ||||||
| Noninterest income | 1,479 | 1,117 | ||||||||
| Noninterest expense | (6,427 | ) | (5,139 | ) | ||||||
| Net income before income taxes | 4,412 | 3,790 | ||||||||
| Provision for income taxes | (1,671 | ) | (1,389 | ) | ||||||
| Net income | $ | 2,740 | $ | 2,402 | ||||||
| Net income per share, basic | $ | 1.22 | $ | 1.12 | ||||||
| Net income per share, fully diluted | $ | 1.20 | $ | 1.10 | ||||||
