EUGENE, Ore.--(EON: Enhanced Online News)--Summit Bank (OTCBB: SBKO) reported net income for the fourth quarter of $759 thousand or 21 cents per fully diluted share. Comparable earnings for the fourth quarter of 2015 were $647 thousand or 19 cents per share. Fiscal year earnings were $2.86 million or $0.80 per fully diluted share, compared to $2.74 million or $0.80 per share for the full year 2015. Summit’s new Central Oregon office in Bend, which opened in Q3 2015, finished the fiscal year ahead of projections for asset growth and operating performance.
“Due to the significant growth we have achieved and the current market opportunity as a result of the pending acquisitions of local competitors by out of state banks, the Summit Bank Board of Directors have unanimously approved an additional capital raise”
“We are pleased with the performance of the Central Oregon Branch Office,” said Craig Wanichek, president and CEO. “We ended the year with over $30 million in loans and nearly $15 million in deposits in Central Oregon. We are delighted that Summit will be the only community bank in the market based on the announced acquisition of another local competitor.”
Summit achieved its fourth consecutive year of annual loan growth in excess of 20 percent during 2016. Total net loans as of December 31, 2016, were $227.0 million, representing a 23.1 percent increase over the fourth quarter 2015 total of $184.4 million. Deposit growth was robust, as well, with total deposits increasing by $44.0 million or 21.0 percent over the previous year.
“Due to the significant growth we have achieved and the current market opportunity as a result of the pending acquisitions of local competitors by out of state banks, the Summit Bank Board of Directors have unanimously approved an additional capital raise,” said Wanichek. “The terms of the common equity raise will be released by early March. It is presently expected to be in the $5 million range and open to existing shareholders and new investors.”
“The Bank exceeded 2015 net income as a result of greater income in our Eugene area commercial lending group in 2016, offsetting reduced profits in our equipment financing division,” Wanichek said.
The Bank continues to hold very low levels of non-performing assets. Total non-performing assets at December 31, 2016, consisted primarily of one parcel of other real estate owned and represented just 0.5 percent of total assets, equaling the result at December 31, 2015.
Summit Bank, with offices in Eugene and Bend, specializes in providing high-level service to professionals and medium-sized businesses and their owners. Summit Bank is quoted on the NASDAQ Over-the-Counter Bulletin Board as SBKO.
QUARTERLY FINANCIAL REPORT – DECEMBER 2016
|(in thousands except per share data)||Unaudited||Unaudited|
|As of||As of|
|Summary Statements of Condition||Dec. 31, 2016||Dec. 31, 2015|
|Cash and short term investments||$||36,649||$||34,389|
|Commercial real estate||129,315||103,923|
|Loan loss reserve and unearned income||(4,117||)||(3,382||)|
|Total net loans||226,969||184,409|
|Property and other assets||10,807||10,223|
|Certificates of deposit||27,455||17,718|
|Total liabilities and shareholders' equity||$||281,997||$||236,305|
|Book value per share||$||6.99||$||6.28|
For the twelve
For the twelve
For the three
For the three
|Summary Statements of Income||Dec. 31, 2016||Dec. 31, 2015||Dec. 31, 2016||Dec. 31, 2015|
|Net interest income||12,268||10,338||3,301||2,823|
|Provision for loan losses||(1,383||)||(977||)||(411||)||(295||)|
|Net income before income taxes||4,600||4,412||1,227||1,050|
|Provision for income taxes||(1,745||)||(1,671||)||(468||)||(402||)|
|Net income per share, basic||$||0.81||$||0.82||$||0.21||$||0.19|
|Net income per share, fully diluted||$||0.80||$||0.80||$||0.21||$||0.19|