Summit Bank Group (OTC Pink: SBKO)
- Q1 2024 Net Income - $2.4 million or $0.31 per fully diluted
share.
- Q1 2024 Net Income increased from $0.30 per share for Q1 2023
and $0.22 per share for Q4 2023.
- Cash and Securities totaled $149.9 million – 13.0 percent of
assets.
- Year over year Net Loan Growth - $208.0 million or 27.3
percent.
- Year over year Deposit Growth - $84.1 million or 9.0 percent
over March 31st 2023.
Summit Bank Group reported net income for the first quarter of
$2.4 million or 31 cents per fully diluted share. Comparable
earnings for the quarter ended December 31, 2023 were $1.68 million
or 22 cents per fully diluted share, representing an increase of 41
percent or 9 cents to earnings and earnings per fully diluted
share, respectively. First quarter provision for loan loss expense
declined by $655 thousand from the previous quarter, which was the
result of the continued decline in total balances in the Bank’s
small commercial equipment finance portfolio and credit quality
improvements.
Net income and earnings per share for the first quarter of 2024
increased from the first quarter of 2023 by $102 thousand or one
cent per share (31 cents versus 30 cents per share) with higher net
interest income offset by higher growth-related increases to
non-interest expense.
“We are pleased to announce we opened our new Redmond, Oregon
office located at 538 Southwest Highland Ave on Friday April 22nd,”
said Craig Wanichek, President and CEO. “We believe this will add
to our new client and deposit growth in the robust Redmond market
and surrounding areas. Loan growth continued in Q1, which partially
offset margin pressure. Additionally, a stabilization of the
equipment lending unit led to improved quarterly results.”
The Company continues to maintain a highly liquid balance sheet
with cash and available for sale short-term securities of $149.9
million, which represents 13.0 percent of total assets as of March
31, 2024, an increase from $134.9 million or 12.5 percent of assets
as of December 31, 2023. Additionally, the Bank maintains secured
borrowing commitments from the Federal Home Loan Bank and the
Federal Reserve Bank with total available borrowing capacity as of
March 31, 2024 of $330 million, increased from its December 31,
2023 total available of $253 million. Combined, the Company’s cash
and available secured borrowing as of March 31, 2024 total $393
million. This total is 36.5 percent of total assets and 130 percent
of total estimated uninsured deposits as of March 31, 2024.
“Summit continues to maintain significant balance sheet
strength,” said Wanichek. “The increase in certificate of deposit
balances was primarily wholesale funding, which was used to retire
all FHLB borrowings, support strong growth in our markets and
bolster cash reserves.”
Loan growth continued to be extremely strong during the first
quarter with total net loan growth of $55.4 million, bringing the
trailing twelve-month net loan growth total to $208.0 million for
an increase of 27.3 percent over March 31, 2023. Total deposits
year over year are up $84.1 million, or 9.0 percent, with excess
cash balances held on March 31, 2023 deployed to fund the increase
in net loans during the most recent twelve months.
“Strong loan growth primarily resulted from conservatively
underwritten construction loans in the process of completion,” said
Wanichek. “In first quarter we began to see a slowdown in loan
activity and pipelines attributable to the increased rate
environment and at the same time saw increased activity in deposit
pipelines as a result of our business development activities.”
Return on average equity for the first quarter and the trailing
twelve months was 9.9 percent and 9.7 percent, respectively. Total
shareholders’ equity ended the first quarter at $98.2 million, an
increase of $10.3 million, or 11.7 percent, since March 31, 2023.
As the Company begins its 21st year of operations, capital levels
remain very strong, supporting the asset growth with consistently
strong retained earnings which have totaled $42.8 million over the
last four years.
Total non-performing assets as of March 31, 2024 have declined
slightly during the first quarter to 0.20 percent of total assets
after ending 2023 at 0.22 percent. Total non-performing assets have
increased compared to the March 31, 2023 figure of 0.12 percent,
with the entirety of the year-over-year increase attributable to a
single SBA guaranteed loan relationship currently in non-accrual
status. The Bank’s commercial real estate portfolio continues to
perform well. The portfolio does not have any non-owner occupied
office loans in downtown Portland.
About Summit Bank Group,
Inc.
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 for
the third year in a row as one of Oregon’s “Top 100 Companies to
Work For,” according to Oregon Business Magazine. The Bank was
voted in 2023 as “Favorite Bank” in the Eugene Register-Guard’s
annual Reader’s Choice Awards and “Best Bank” by Central Oregon’s
Bend Bulletin. Summit’s Chief Operating Officer, Chris Hemmings,
was named an Executive of the Year last week by the Portland
Business Journal. Summit Bank Group Inc. is quoted on the OTCPK as
SBKO.
Forward Looking
Statements
This press release contains certain forward-looking statements
about the Company and the Bank. Forward-looking statements include
statements regarding anticipated future events or results and can
be identified by the fact that they do not relate strictly to
historical or current facts. Forward-looking statements, by their
nature, are subject to risks and uncertainties. Certain factors
that could cause actual results to differ materially from expected
results include increased competitive pressures, inflation, changes
in the interest rate environment, general economic conditions or
conditions within the securities markets, potential recessionary
conditions, changes in asset quality, charge-offs and credit loss
provisions, changes in demand for our products and services,
availability of low-cost funding, legislative, accounting, tax and
regulatory changes, including changes in the monetary and fiscal
policies of the Board of Governors of the Federal Reserve System,
political developments, uncertainties or instability, catastrophic
events, acts of war or terrorism, natural disasters or breach of
our operational or security systems or infrastructure, including
cyberattacks that could adversely affect the Company’s financial
condition and results of operations and the business in which the
Company and the Bank are engaged.
Accordingly, you should not place undue reliance on
forward-looking statements. The Company undertakes no obligation to
revise these forward-looking statements or to reflect events or
circumstances after the date of this press release.
QUARTERLY FINANCIAL REPORT – March 31, 2024
(in thousands except per share data) Unaudited Unaudited
As
of As of Summary Statements of Condition Mar.
31, 2024 Mar. 31, 2023 Cash and short term investments
$
88,521
$
221,724
Securities
61,388
69,666
Loans: Commercial
308,259
248,481
Commercial real estate
595,437
463,005
Other
77,337
59,738
Loan loss reserve and unearned income
(10,449
)
(8,593
)
Total net loans
970,585
762,631
Property and other assets
27,635
25,154
Repossessed property
981
841
Total assets
$
1,149,110
$
1,080,015
Deposits: Noninterest-bearing demand
$
178,040
$
188,350
Interest-bearing demand
700,850
661,640
Certificates of deposit
143,662
88,416
Total deposits
1,022,552
938,405
Subordinated debt
19,685
19,644
Other liabilities
8,639
34,032
Shareholders' equity
98,234
87,934
Total liabilities and shareholders' equity
$
1,149,110
$
1,080,015
Book value per share
$
12.75
$
11.48
Unaudited Unaudited Unaudited
For the three months ended
For the three months ended For the three months ended
Summary Statements of Income Mar. 31, 2024 Mar.
31, 2023 Dec. 31, 2023 Interest income
$
17,995
$
14,819
$
17,619
Interest expense
(5,896
)
(3,877
)
(5,335
)
Net interest income
12,099
10,942
12,284
Provision for loan losses
(2,017
)
(1,973
)
(2,672
)
Noninterest income
198
429
(262
)
Noninterest expense
(6,998
)
(6,254
)
(6,943
)
Net income before income taxes
3,282
3,143
2,407
Provision for income taxes
(861
)
(824
)
(728
)
Net income
$
2,421
$
2,319
$
1,679
Net income per share, basic
$
0.31
$
0.30
$
0.22
Net income per share, fully diluted
$
0.31
$
0.30
$
0.22
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version on businesswire.com: https://www.businesswire.com/news/home/20240424242444/en/
Craig Wanichek President & Chief Executive Officer
541-684-7500