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Summit Bank Reports 3rd Quarter Earnings

October 21, 2020

Summit Bank (OTC Pink: SBKO) reported net income for the third quarter of $2.06 million or 35 cents fully diluted share.  Earnings for the comparable period one year ago were $1.65 million or 32 cents per fully diluted share.  Year to date earnings were $4.44 million or 79 cents per fully diluted share, compared to $4.24 million or 81 cents that the Bank earned during the first nine months of 2019.  The solid earnings for the third quarter were achieved despite increased provision for future loan losses resulting from the ongoing impact of the COVID-19 pandemic.  “We are pleased with the Bank’s growth over the summer given the economic conditions associated with the pandemic that our community and nation are facing,” said Craig Wanichek, CEO and President.  “As an Oregon-based business bank, we continued to grow this quarter because of our close relationships and consistent communication with both longtime and new clients.”  

Earnings per fully diluted share (EPS) for the trailing four quarters ended September 30th were $1.05 compared to $1.19 for the four quarter period ended September 30th 2019.  The Bank completed a successful capital offering in the second quarter of 2020 which increased average total shares outstanding for the year to date by 7.7 percent which was the primary driver of the lower earnings per share relative to the previous year.  Net interest income for the nine month period exceeded the similar period last year by $2.7 million, an increase of 15.5 percent as the Bank’s core operations remain robust despite the challenging economic environment.  “We’d like to acknowledge the bank’s dedicated staff,” said Wanichek.  “As we continue to navigate through this pandemic, our team comes into the office every day to provide our clients with the best service and client experience possible.  Thank you to Summit Bank’s dedicated colleagues for continuing to work hard on behalf of our clients.”

Summit’s balance sheet remains significantly expanded at the end of the third quarter as all $119 million of the Bank’s Small Business Administration’s Paycheck Protection Program (PPP) loans, which we originated to help our clients mitigate the impact of the COVID-19 pandemic, remain outstanding.  Earlier this year, Summit Bank announced that it was able to help 440 small businesses and nonprofits across Oregon under the U.S. Small Business Administration (SBA) Paycheck Protection Program (PPP). 

Most recently, Summit Bank committed to donating $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 including minority-owned businesses, women-owned businesses, service-disabled veteran-owned businesses and emerging small businesses, particularly those operating in low income areas of the state.  The bank will partner with Community LendingWorks, a Community Development Financial Institution (CDFI) based in Springfield, Oregon to help underwrite, disburse and service the loans.  

Summit has continued to achieve strong loan growth over the year to date and the last twelve months with total net loans (excluding PPP loans) increasing by $64.4 million or 15.4 percent since September 30th 2019 and by  $44.6 million or 10.2 percent during the first nine months of 2020.  The Bank’s deposit base continues to grow as well with $38.5 million or 6.6 percent growth achieved during the third quarter and $186.3 million or 42.3 percent over the last twelve months.  

The Bank continues to hold extremely high levels of available liquidity during this period of uncertainty with $142.7 million of cash & short-term investments in securities as of September 30th 2020. This is more than twice the total of $67.5 million in similar assets held at September 30th 2019.  Non-performing assets have increased somewhat during the quarter with total non-performing assets at September 30th 2020 representing just 0.95 percent of total assets, an increase from 0.23 percent as September 30th 2019.  

Summit Bank is also pleased to report that our shareholders voted on and approved the formation of Summit Bank Group, Inc., a bank holding company.  All regulatory information and documentation for the Holding Company has been approved, making Summit Bank a wholly owned subsidiary of Summit Bank Group, Inc.  As a result, effective immediately, Summit Bank shareholders became 100% owners of the holding company.  

With offices in Eugene, Bend and downtown Portland, Summit Bank is a business bank that 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.  

SBA and Treasury Announce Simpler PPP Forgiveness of Loans $50,000 or Less

Effective the evening of October 8, the U.S. Small Business Administration, in consultation with the Treasury Department, released a simpler loan forgiveness application for PPP loans of $50,000 or less.  This action streamlines the PPP forgiveness process for the aforementioned size loans to provide financial and administrative relief to America’s smallest businesses.  

For complete information and to download the forms, see our Paycheck Protection Program page.

Summit Bank announces promotion of Michelle Cross and Galan Carter

September 21, 2020—Gary O’Connell, Central Oregon market president of Summit Bank (OTC Pink: SBKO) announced today that Associate Business Client Advisors Michelle Cross and Galan Carter have been promoted to Business Portfolio Managers.

Michelle Cross, a Central Oregon native, came to Summit Bank in 2018. She has a Bachelor’s degree from Oregon State University and received her MBA from the UCLA Anderson School of Management with an emphasis in Real Estate Finance and Development. Prior to joining Summit Bank, Cross worked for the Ratkovich Company, a commercial real estate development firm in Southern California.

Originally from Georgia, Galan Carter moved to Central Oregon with his wife in 2012. After high school Carter joined the Army and served for seven years as a paratrooper and began his banking career after his move to Central Oregon. He has worked with Summit Bank since 2018, and is passionate about the Central Oregon community. He currently serves on the Ronald McDonald House of Central Oregon Leadership Board.

Of both Cross and Carter, O’Connell says, “Our team is fortunate to have many strong performers. I’m proud of the work Michelle and Galan have done in their two years at Summit Bank, and I can’t wait to see what they will accomplish in their new roles.”

As Business Portfolio Managers, Cross and Carter will collaborate with lending team leaders to provide essential insight and expertise to the loan underwriting and credit analysis processes, while also overseeing lending partnerships with professionals and business owners in Central Oregon.

With offices in Eugene, Bend and downtown Portland, Summit Bank is a community bank that specializes in providing high-level service to professionals and medium-sized businesses and their owners.

Summit Bank hires Matt Dynice as new Vice President

September 17, 2020—Gary O’Connell, Central Oregon market president of Summit Bank (OTC Pink: SBKO) announced today that Summit Bank has hired Matt Dynice as Vice President, Business Client Advisor in the Central Oregon market. Dynice joins Summit Bank with more than 15 years of banking experience, with the last thirteen of those years having been with Umpqua Bank where he was the Senior Vice President and Commercial Markets Director for Albany/Corvallis, Central Oregon and Southern Oregon.

“Matt’s experience and incredible success with his previous institution paired with his fit with Summit Bank’s values of integrity, personal responsibility, and providing exceptional service make him an important asset to our team,” O’Connell says. “We are so excited to welcome him to the Summit Bank family, and look forward to everything he will surely contribute to the Central Oregon market and beyond.”

Dynice’s background traces back to Central Oregon, where he grew up and attended Mountain View High School. He holds a degree in Business Information Systems from Linfield College, and has an excellent reputation in the business and commercial lending community for his track record of production and strong credit quality. He is involved with the Central Oregon community, most recently serving as a Board Member for the Deschutes Children’s Foundation, and previously served as their Board Treasurer and Board President.

As Vice President, Business Client Advisor, Dynice will partner with local business-owners to help them reach and exceed their financial goals. He will also lead our Associate Business Client Advisor, Portfolio Managers, and Commercial Loan Support Specialist in Central Oregon.

With offices in Eugene, Bend and downtown Portland, Summit Bank is a community bank that specializes in providing high-level service to professionals and medium-sized businesses and their owners.

Our thoughts for a community impacted by wildfires

This has been such a painful past few days. The wildfires have had a devastating impact on so many in Oregon and across the West. We keep all of the families and businesses affected in our thoughts. Thank you to all of the firefighters and first responders for their round the clock efforts. We have been encouraged by the heartwarming sight of community volunteers coming together to help their neighbors amidst all the images of destruction. 

In so many ways we are seeing the best in our communities and neighbors as we face this catastrophe. We know the need is overwhelming, we are trying to do our small part to assist by providing all of our colleagues paid time off to help in any way they feel they can and matching all colleague donations to the Red Cross Cascades Region to help those affected.

If you wish to donate to help, act now. Below are links to two non-profit organizations currently helping the lives of Oregonians.

Red Cross Cascades Region
Be sure and designate “Western Wildfires” or “Local Red Cross Chapter

Salvation Army Cascade Division:

Our hearts go out to those who are dealing with after-effects of the devastation or remain on alert for evacuation. While many are dealing with the unimaginable, know your communities are behind you.

-Craig Wanichek
PRESIDENT AND CEO

Summit Bank Eugene lobby to reopen September 21

UPDATE 09/14: The Eugene lobby will reopen on September 21.

Sep 8, 2020:

On Monday, September 7, Summit Bank learned that five colleagues in our Eugene office tested positive for COVID-19 over the weekend. In response, and out of an abundance of caution, we have temporarily closed our Eugene lobby. Our drive-through, online, mobile, and courier banking services are open. We can also be meet with clients by appointment.

Summit Bank is committed to the health and safety of all our colleagues and clients. All those working at the Eugene office and all our locations follow strict protocols as required by the State of Oregon. Colleagues who might have been exposed have been tested, and we have contracted to thoroughly clean and sanitize the building. Summit Bank is working with Lane County Public Health and at this time do not believe any public transmission occurred.

As we learn more, we will continue to update the website.

Special Shareholder Meeting

Summit Bank is pleased to announce the special shareholder meeting that will be held virtually on Monday September 21, 2020 at 3:00 pm. 

Purpose of Meeting:

Consider and vote upon a proposal to form a bank holding company, and to consider and vote upon a proposal to adjourn the meeting to obtain additional proxies if appropriate.

Formation of the holding company will provide additional flexibility to stratify changing and expanding needs for financial services and additional alternatives for securing funds that may be required to meet those needs.  The reorganization will not change the way the Bank operates in any manner.  Bank stock will be exchanged for common stock of the Holding Company on a share-for-share basis.  Please see the Proxy Statement for additional information.

How to Vote & Participate:

Shareholders will receive notification and voting options to participate in the meeting.  Shares are held in two basic formats and may have been acquired in either or both formats.

1.  Direct, meaning the shares were purchased directly from Summit Bank

2.  Beneficial, meaning the shares held through a brokerage account 

Direct shareholders will receive a voting packet in the mail from ClearTrust LLC with voting instructions and options for participation in the virtual meeting.  Beneficial shareholders will receive either an email or a voting packet from their broker providing voting options and options for participation in the virtual meeting. Be sure to check your junk email for an email from National Financial Services LLC,

Shareholder meeting regulations require that beneficial shareholders must deliver their votes through their broker. 

Questions:

Should you have any questions, you may contact:

Scott Goldstein, CFO at 541-684-7505 or sgoldstein@sbko.bank

Vickie Cussins, Corporate Secretary at 541-684-7501 or vcussins@sbko.bank

Summit Bank Announces Rachael Baker Promotion to Vice President, Compliance Officer

July 30, 2020 – Craig Wanichek, president and chief executive officer of Summit Bank (OTC Pink: SBKO), today announced that Rachael Baker has been promoted to Vice President, Compliance Officer.  She is responsible for managing all facets of regulatory compliance affecting bank operations, including marketing, deposits and lending through Summit Bank’s Compliance program.  She will also maintain and assess compliance policies and business procedures for integration of regulatory requirements and industry best practices.

Baker was the second hire in Summit Bank’s de novo Central Oregon office when it opened five years ago.  “During her time at Summit Bank,” said Wanichek, “Rachael has proven to be a valuable asset and colleague at Summit Bank.  She has worked her way from Associate Business Client Advisor to Business Portfolio Manager, where she managed a team of commercial underwriters and a loan processor.”  Baker’s promotion includes being appointed to Summit Bank’s Leadership Team.  

Baker is an active member of the Central Oregon community.  She serves on the advisory board of Heathy Families of the High Desert, volunteers regularly with the local school district, and coaches youth softball. 

With offices in Eugene, Bend and downtown Portland, Summit Bank is a community bank that specializes in providing high-level service to professionals and medium-sized businesses and their owners.

Summit Bank Reports 2nd Quarter Earnings

EUGENE, Ore. — July 22, 2020: Summit Bank (OTC Pink: SBKO) reported net income for the second quarter of $1.41 million or 25 cents per fully diluted share.  Earnings for the comparable period one year ago were $1.35 million or 26 cents per fully diluted share. Year to date earnings were $2.38 million or 44 cents per fully diluted share, compared to $2.59 million or 49 cents that the Bank earned during the first six months of 2019. Increased average number of shares from our successful $8.0 million capital raise in the first quarter impacted earnings per share for the quarter and year-to-date.

The Bank was able to grow earnings despite elevated loan related losses in the Bank’s small business commercial equipment finance portfolio as well as increased provision for future loan losses resulting from the ongoing impact of the COVID-19 pandemic. The focus of the SBA division on the Paycheck Protection Program (PPP) led to a decline in non-interest income for the quarter, as the Bank has historically booked and sold a portion of its traditional SBA loans in the secondary market.  Net interest income for the six month period, excluding PPP activity, exceeded the similar period last year by $1.45 million, an increase of 13.1 percent as the Bank’s core operations remain robust despite the challenging economic environment. 

The Bank responded to the Federal SBA PPP during the second quarter by originating $114.2 million in loans to help our clients mitigate the impact of the COVID-19 pandemic.  This lending activity combined with robust growth in deposits from existing and new clients expanded Summit’s balance sheet significantly during the quarter with total loans increasing by $121.4 million or 26.1 percent during the quarter and $195.9 million or 50.3 percent over the previous year, and total deposits increasing by $88.2 million or 17.6 percent during the quarter and $179.0 million or 43.8 percent over the previous year. The Bank completed a successful common stock offering during the second quarter raising nearly $8 million in new capital that will be used to support the Bank’s continued loan balance sheet growth.  

“The effort by the entire team to get us through the PPP and support our communities was tremendous,” said Craig Wanichek, President and CEO. “We are also very humbled by the confidence our communities have in Summit Bank by bringing nearly $8 million in new capital in one day.”  

The Bank’s available liquidity was extremely strong during this period of uncertainty with $119.4 million of cash & short-term investments in securities as of June 30, 2020. This is more than twice the total of $58.5 million in similar assets held at June 30, 2019. Non-performing assets remain low with total non-performing assets at June 30, 2020 representing just 0.24percent of total assets, a decrease from 0.28 percent at June 30, 2019.

“As a technology-focused bank,” said Wanichek, “Summit was able to come together for the benefit of our clients and communities this quarter. As an essential business, Summit remained open throughout the pandemic and helped find ways to ease the financial burdens of our clients.  Our bankers worked closely with business owners and nonprofit executives to understand their needs and tailor services accordingly.  Our investment in technology including accessible remote and online banking enabled us to be “pandemic ready,” which allowed our bank to continue to serve all of our clients during lockdown.”

With offices in Eugene, Central Oregon and downtown Portland, Summit Bank is a business bank that 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.