Summit Bank Group (OTC Pink: SBKO):
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Summit Bank Group Reports 3rd Quarter Earnings (Graphic: Business Wire)
- Q3 2022 Net Income – $3.56 million or $0.46 per fully diluted share.
- Year to date Net Income – $9.71 million or $1.26 per fully diluted share or 24 percent gain over prior year period
- Trailing twelve months Net Income – $12.74 million or $1.66 per fully diluted share
- Year over year Net Loan Growth – $129.1 million or 22.3 percent (excluding PPP loans)
- Year over year Deposit Growth – $44.2 million or 5.3 percent over September 30, 2021
Summit Bank Group reported net income for the third quarter of $3.56 million or 46 cents per fully diluted share. Comparable earnings for the third quarter of 2021 were $2.92 million or 38 cents per fully diluted share, representing increases of 22 percent and 21 percent to earnings and earnings per fully diluted share, respectively. Year to date net income for 2022 was $9.71 million or $1.26 per fully diluted share representing increases of $1.90 million or 24 percent and 24 cents per fully diluted share or 23 percent over the similar period during 2021. Summit successfully concluded its PPP loan program during the third quarter with de minimis PPP related income during the quarter compared to the third quarter of 2021 where PPP related income comprised 11.5 percent of total net interest and non-interest income.
“The opportunities arising from the balance sheet and earnings growth have seen the Bank add new colleagues,” said Craig Wanichek, president and CEO. “We are very excited this quarter to have added exceptional, experienced bankers in all of our markets.”
Total net loans as of September 30, 2022, were $708.3 million. Net loans grew by $49.0 million or 7.4 percent during the third quarter and by $129.1 million or 22.3 percent (excluding PPP) since September 30, 2021. Deposit growth has slowed during 2022 as clients have deployed excess cash reserves accumulated during the pandemic with total deposits increasing by $9.9 million or 1.1 percent during the third quarter and by $44.2 million or 5.3 percent since September 30, 2021. The Company continues to produce strong and consistent profitability concurrent with the rapid balance sheet growth with return on average equity of 18.5 percent during both Q2 and Q3 2022 compared to 16.8 percent during Q3 2021 and 15.9 percent for the 2021 fiscal year. The Company is currently in its 10th consecutive year producing a return on equity in excess of 10.0 percent.
“Strong loan growth for the quarter was the direct result of our bankers working closely with our clients over the last year,” said Wanichek. “Our team is committed to providing unrivaled service to our clients resulting in very responsive banking solutions.”
The Company’s strong earnings continue to support asset growth with total shareholders’ equity ending the third quarter at $80.2 million, an increase of $9.1 million or 12.8 percent since September 30, 2021. Liquidity remains high with cash and short term investments as of September 30, 2022 at $180.1 million or 25.4 percent of total net loans.
“Our strategy of remaining highly liquid and structuring a balance sheet with a short duration has worked well in the rising rate environment,” said Chief Financial Officer Scott Goldstein. “Summit is positioned to support strong loan growth with significant liquidity at the end of the quarter.”
The Bank continues to hold very low levels of non-performing assets with total non-performing assets at September 30, 2022 representing just 0.07 percent of total assets, up slightly from June 30, 2022 and September 30, 2021 levels of 0.04 percent and 0.05 percent respectively.
Summit Bank Group Inc., through its wholly owned subsidiary Summit Bank, maintains offices in Eugene, Central Oregon and downtown Portland, and specializes in providing high-level service to professionals and medium-sized businesses and their owners. Summit Bank Group Inc. is quoted on the NASDAQ Over-the-Counter Bulletin Board as SBKO.
SUMMIT BANK GROUP INC. CONSOLIDATED QUARTERLY FINANCIAL REPORT – SEPTEMBER 30, 2022
| (in thousands except per share data) | Unaudited | Unaudited | ||||||||||||||
As of |
As of |
|||||||||||||||
| Summary Statements of Condition | Sep. 30, 2022 | Sep. 30, 2021 | ||||||||||||||
| Cash and short term investments | $ |
180,125 |
$ |
247,401 |
||||||||||||
| Securities | 67,286 |
30,282 |
||||||||||||||
| Loans: | ||||||||||||||||
| Commercial | 219,100 |
206,838 |
||||||||||||||
| Commercial real estate | 437,193 |
373,745 |
||||||||||||||
| Other | 60,282 |
48,201 |
||||||||||||||
| Loan loss reserve and unearned income | (8,274 |
) |
(9,163 |
) |
||||||||||||
| Total net loans | 708,301 |
619,621 |
||||||||||||||
| Property and other assets | 20,137 |
15,503 |
||||||||||||||
| Repossessed property | 242 |
49 |
||||||||||||||
| Total assets | $ |
976,091 |
$ |
912,856 |
||||||||||||
| Deposits: | ||||||||||||||||
| Noninterest-bearing demand | $ |
212,742 |
$ |
219,488 |
||||||||||||
| Interest-bearing demand | 629,475 |
595,495 |
||||||||||||||
| Certificates of deposit | 28,478 |
11,546 |
||||||||||||||
| Total deposits | 870,695 |
826,529 |
||||||||||||||
| Subordinated debt | 19,624 |
- |
||||||||||||||
| Other liabilities | 5,518 |
15,156 |
||||||||||||||
| Shareholders' equity | 80,254 |
71,171 |
||||||||||||||
| Total liabilities and shareholders' equity | $ |
976,091 |
$ |
912,856 |
||||||||||||
| Book value per share | $ |
10.51 |
$ |
9.41 |
||||||||||||
| Unaudited | Unaudited | Unaudited | Unaudited | |||||||||||||
For the nine months ending |
For the nine months ending |
For the three months ending |
For the three months ending |
|||||||||||||
| Summary Statements of Income | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | ||||||||||||
| Interest income | $ |
31,404 |
$ |
24,951 |
$ |
11,963 |
$ |
9,016 |
||||||||
| Interest expense | (1,913 |
) |
(440 |
) |
(1,178 |
) |
(133 |
) |
||||||||
| Net interest income | 29,491 |
24,511 |
10,785 |
8,883 |
||||||||||||
| Provision for loan losses | (2,922 |
) |
(1,867 |
) |
(1,376 |
) |
(731 |
) |
||||||||
| Noninterest income | 2,082 |
1,374 |
688 |
493 |
||||||||||||
| Noninterest expense | (15,539 |
) |
(13,457 |
) |
(5,273 |
) |
(4,690 |
) |
||||||||
| Net income before income taxes | 13,112 |
10,561 |
4,825 |
3,955 |
||||||||||||
| Provision for income taxes | (3,402 |
) |
(2,747 |
) |
(1,262 |
) |
(1,033 |
) |
||||||||
| Net income | $ |
9,709 |
$ |
7,814 |
$ |
3,563 |
$ |
2,922 |
||||||||
| Net income per share, basic | $ |
1.27 |
$ |
1.04 |
$ |
0.47 |
$ |
0.39 |
||||||||
| Net income per share, fully diluted | $ |
1.26 |
$ |
1.03 |
$ |
0.46 |
$ |
0.38 |
||||||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20221019005287/en/