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Summit Bank Reports 2021 1st Quarter Earnings

SBKO | April 21, 2021

Summit Bank (OTC Pink: SBKO):

Q1 2021 Net Income - $2.37 million or $0.39 per fully diluted share, up 111 percent over Q1 2020
Q1 Net Loan Growth - $38.7million, an increase of 6.8 percent over December 31 2020.
Trailing 12 month Net Loan Growth - $147.1 million or 31.7 percent (including PPP loans)
Trailing 12 month Net Loan Growth - $53.8 million or 11.6 percent (excluding of PPP loans)
PPP loans made during Q1 2021 - $61 million with a total of $93 million remaining outstanding as of March 31 2021 from a total of $180 million originated over the last 12 months.
Q1 2021 Deposit Growth - $39 million or 6.0 percent over December 31 2020

Earnings for Q1 2021 exceeded Q1 last year by $1.4 million or 145 percent, an increase of $0.21 per fully diluted share. The earnings improvement was driven by sharply lower loan losses compared to Q1 2020 (improvement of $0.09 per fully diluted share), ongoing income from the Bank’s origination of emergency Paycheck Protection Program (PPP) loans during both 2020 and Q1 2021 ($0.09 per fully diluted share), and growth in the Bank’s loan portfolio ($0.03 per fully diluted share).

Total net loans as of March 31 2021, were $611.3 million, representing a 31.7 percent increase over the Bank’s total at March 31 2020. Deposit growth also remains extremely high with total deposits increasing by $196.7 million or 39.4 percent since March 31 2020. Summit Bank has been successful in maintaining strong and consistent profitability concurrent with its recent rapid balance sheet growth with a return on average equity of 14.9 percent during Q1 2021 following 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.

Summit’s continued robust earnings supported asset growth during the quarter and thus the Bank’s capital position remains strong. Total shareholders’ equity ended the quarter at $65.6 million, an increase of $2.4 million over the last three months and an increase of $17.6 million over the last 12 months. Liquidity remains extremely high with cash and short term investments as of March 31 2021 at $135.6 million or 22.2 percent of total net loans.

The Bank continues to hold very low levels of non-performing assets with total non-performing assets at March 31, 2021 representing just 0.27 percent of total assets, a slight increase from 0.26 percent at December 31, 2020.

Summit Bank partnered with Community LendingWorks during the quarter to donate $150,000 of its CARES Act PPP SBA loan income to make microloans to underserved members of the community in all three of its markets. To date, $117,500 has been funded to 16 small businesses.

Summit Bank, with offices in Eugene/Springfield, Central Oregon and the Portland Metropolitan area, specializes in providing high-level service to professionals and medium-sized businesses and their owners. Summit was recognized in 2020 as the Top Small Business Administration (SBA) Community Bank Lender in the State of Oregon. Summit Bank is quoted on the NASDAQ Over-the-Counter Bulletin Board as SBKO.

QUARTERLY FINANCIAL REPORT – MARCH 2021

	(in thousands except per share data)	Unaudited			Unaudited
		As of			As of
	Summary Statements of Condition	Mar. 31, 2021			Mar. 31, 2020
	Cash and short term investments	$	135,586		$	81,264
	Securities		13,867			7,244
	Loans:
	Commercial		234,728			135,191
	Commercial real estate		341,696			289,188
	Other		46,479			48,255
	Loan loss reserve and unearned income		(11,623	)		(8,437	)
	Total net loans		611,280			464,198
	Property and other assets		14,735			14,414
	Repossessed property		169			347
	Total assets	$	775,637		$	567,467

	Deposits:
	Noninterest-bearing demand	$	171,212		$	100,363
	Interest-bearing demand		508,701			356,989
	Certificates of deposit		16,566			42,423
	Total deposits		696,479			499,776
	Other liabilities		13,587			19,754
	Shareholders' equity		65,571			47,936
	Total liabilities and shareholders' equity	$	775,637		$	567,466

	Book value per share	$	10.87		$	9.20

		Unaudited			Unaudited
		For the three months ending			For the three months ending
	Summary Statements of Income	Mar. 31, 2021			Mar. 31, 2020
	Interest income	$	7,754		$	6,971
	Interest expense		(178	)		(550	)
	Net interest income		7,576			6,421
	Provision for loan losses		(641	)		(1,436	)
	Noninterest income		403			267
	Noninterest expense		(4,140	)		(3,939	)
	Net income before income taxes		3,199			1,314
	Provision for income taxes		(824	)		(343	)
	Net income	$	2,375		$	971

	Net income per share, basic	$	0.39		$	0.19
	Net income per share, fully diluted	$	0.39		$	0.18