Summit Bank Reports 2021 2nd Quarter Earnings
Summit Bank (OTC Pink: SBKO)
Earnings for Q2 2021 exceeded the similar period last year by $1.1 million, an increase of 66 percent or $0.13 per fully diluted share. Year to date earnings are up 85.3 percent (increase of $0.30) over last year. The earnings improvement was driven by sharply lower provision for loan losses compared to 2020, strong growth in the Bank's loan portfolio (excluding Paycheck Protection Program (PPP) activity), as well as ongoing income from the Bank's PPP loans.
"We are very pleased with our overall credit quality coming out of the pandemic," said Craig Wanichek, president and chief executive officer. "This is a testament to the strong operational management of our clients during very uncertain times."
Total net loans as of June 30, 2021, were $618.8 million, which included $71.3 million of PPP loan balances. Net loans excluding PPP loans grew by $29.5 million or 5.7 percent during the quarter and by $76.4 million or 16.2 percent since June 30, 2020. Deposit growth also remains extremely high with total deposits increasing by $140.1 million or 23.8 percent over the trailing 12 month period. The Bank has been successful in maintaining strong and consistent profitability concurrent with its recent rapid balance sheet growth with return on average equity of 15.2 percent during Q2, 2021 following 14.7 percent during Q1, 2021 and 14.3 percent for the 2020 fiscal year. The Bank is currently in its ninth consecutive year producing a return on equity in excess of 10 percent.
"Our bankers have been very active in our markets. This has resulted in loan and deposit growth with both new and existing clients," said Wanichek. Summit Bank is now over $800 million in assets.
Summit's continued robust earnings have supported its asset growth during the quarter and thus the Bank's capital position remains strong, with total shareholders' equity ending the quarter at $68.1 million, an increase of $2.6 million over the last three months and an increase of $10.7 million over the last 12 months. Liquidity remains extremely high with cash and short term investments as of June 30, 2021 at $145.3 million or 23.0 percent of total net loans.
The Bank continues to hold very low levels of non-performing assets with total non-performing assets at June 30, 2021 representing just 0.08 percent of total assets, down from 0.27 percent at March 31, 2021.
Summit Bank, with offices in Eugene, Bend and the Portland Metropolitan area, specializes in providing high-level service to professionals and medium-sized businesses and their owners. Summit was recognized earlier this year as a Top Small Business Administration (SBA) Community Bank Lender in the State of Oregon. Summit Bank is quoted on the OTC Pink as SBKO.