Summit Bank Reports 4th Quarter Earnings

EUGENE, Ore., Feb. 6, 2015 /PRNewswire/ -- Summit Bank (OTCBB: SBKO) reported net income for the fourth quarter of $675 thousand or 30 cents per fully diluted share, up 24% from last year. Earnings for the comparable period one year ago were $544 thousand or 27 cents per fully diluted share. Fiscal year earnings for 2014 were $2.4 million or $1.10 per fully diluted share, up 67% compared to $1.4 million or $0.69 cents per share for fiscal year 2013. Year to date return on average assets and return on average equity were 1.4 percent and 15.5 percent, respectively.

"The significant increase in earnings is attributable to the continued expansion of our loan portfolio, which has experienced 8 consecutive quarters of double-digit growth," said Craig Wanichek, President and Chief Executive Officer. "It was another exciting year where we were able to add a significant number of new large and small relationships. The growth in loans, together with maintaining our expenses also improved our efficiency ratio from 59% to 55%. These strong results were achieved at the same time we invested in our Small Business Administration initiative."

Total net loans as of December 31, 2014, were $147.0 million, representing a 24.8 percent increase over the December 31, 2013 total of $117.8 million. Total deposits increased by $23.9 million or 17.9 percent over the previous year. Summit's capital base continues to grow in step with the Bank's steady asset growth driven by consistently strong earnings. Total shareholders' equity at December 31, 2014, was $16.8 million, an increase of 19.5% or $2.8 million over December 31 2013.

"Our strategy to work with clients, understand what they need, and provide flexible structures to meet their goals has resulted in Summit being one of the few banks in America producing this level of earnings and loan growth," said Wanichek.

The Bank continues to hold very low levels of non-performing assets. Loans that are 90 days past due or in non-accrual status plus repossessed property, measured as a percentage of assets, stands at 0.4 percent at December 31, 2014, compared to 0.6 percent one year ago.

Headquartered in Eugene at 96 E. Broadway, the Bank specializes in providing high-level service to professionals and to medium-sized businesses and their owners. Summit Bank is quoted on the NASDAQ Over-the-Counter Bulletin Board as SBKO.

QUARTERLY FINANCIAL REPORT - DECEMBER 2014

(in thousands except per share data)		Unaudited		Unaudited
		As of		As of
Summary Statements of Condition		Dec. 31, 2014		Dec. 31, 2013
Cash and short term investments	$	17,986	$	19,652
Securities		6,284		7,246
Loans:
Commercial		52,301		36,349
Commercial real estate		80,640		65,702
Other		16,790		17,939
Loan loss reserve and unearned income		(2,721)		(2,157)
Total net loans		147,010		117,834
Property and other assets		7,263		6,811
Repossessed property		723		914
Total assets	$	179,266	$	152,457

Deposits:
Noninterest-bearing demand	$	49,079	$	45,148
Interest-bearing demand		93,200		83,946
Certificates of deposit		15,447		4,681
Total deposits		157,726		133,775
Other liabilities		4,692		4,587
Shareholders' equity		16,848		14,095
Total liabilities and shareholders' equity	$	179,266	$	152,457

Book value per share	$	7.77	$	6.73

	Unaudited	Unaudited
	For the twelve	For the twelve
	months ending	months ending
Summary Statements of Income	Dec. 31, 2014	Dec. 31, 2013
Interest income	$ 8,521	$ 6,731
Interest expense	(247)	(226)
Net interest income	8,274	6,505
Provision for loan losses	(463)	(740)
Noninterest income	1,117	940
Noninterest expense	(5,139)	(4,410)
Net income before income taxes	3,789	2,295
Provision for income taxes	(1,388)	(857)
Net income	$ 2,401	$ 1,439

Net income per share, basic	$ 1.12	$ 0.70
Net income per share, fully diluted	$ 1.10	$ 0.69