Company Release – 4/29/2020 9:00 AM ET
UPDATE 5/4/20: Thank you for your interest in the Summit Bank stock offering. The stock offering, as of 5:00 p.m. on Monday, May 4, is fully subscribed.
EUGENE, Ore.–Craig Wanichek, President and Chief Executive Officer of Summit Bank (OTC Pink: SBKO), today announced that the Summit Bank Board of Directors unanimously approved a $5 million dollar stock offering.
On April 23, the Summit Bank Board met to discuss and approve the offering of $5,000,000 in additional capital at $10.00 per share. The offering will be open for a maximum of 30 days. The minimum investment is $25,000 and the maximum purchase amount is 100,000 shares or $1,000,000 per household. The offering will be available to new and existing shareholders on a first-come, first-served basis.
According to Summit Bank Board of Directors Chair Paul Weinhold, “We believe the raise is necessary to solidify Summit Bank’s balance sheet in relation to the significant growth of PPP loans, as well as historic and projected growth in conventional loans and as a measure of prudence in entering into a time of economic uncertainty.” The Offering Circular is available on Summit Bank’s website at:
“We are excited about Summit Bank’s growth prospects in all of our markets,” said Wanichek. “While the COVID-19 virus has had a negative effect on economic activity, the Bank remains a source of strength for our clients and the communities we serve. Our team has approved, underwritten and funded nearly $90 million in Paycheck Protection Program loans to approximately 330 clients this month. We are currently working on Phase 2 of the PPP. Our local decision making, relationship based approach has resonated with current clients.”
The offering will be managed by the company who will administer all subscription notices. The subscription notice is attached to the Offering Circular.
Summit Bank, as of the end of the 2020 first quarter, reported net loans of $464.2 million, an increase of $26.7 million for the quarter and an increase of $106.5 million or 29.8 percent over March 31, 2019.
The Bank reported $88.5 million of cash and short-term investments in securities as of March 31, 2020. The Bank continues to hold very low levels of non-performing assets.
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. Summit Bank is one of the top community bank lenders in Oregon for SBA Financing. The Bank is designated this year as one of the Best Green Companies to Work for in Oregon, according to Oregon Business Magazine.
Please refer to the Offering Circular on Summit Bank’s website for additional detailed information and risk factors regarding the offering and the company.
This press release contains certain forward-looking statements. You should not place undue reliance on those statements because they are subject to numerous uncertainties and factors relating to our operations and business environment, all of which are difficult to predict and many of which are beyond our control. These forward-looking statements include, but are not limited to, (i) statements about our plans, objectives, expectations and intentions and other statements that are not historical facts, and (ii) other statements identified by words such as “believes,” “expects,” “anticipates,” “estimates,” “intends,” “will,” “plans” or similar words or expressions. Some of the factors that may cause actual results to differ materially from those contemplated by such forward-looking statements include, but are not limited to, the following possibilities: our ability to execute our business strategy successfully, effect of COVID-19 on national and local businesses, revenues are lower than expected; credit quality deterioration that could cause an increase in the provision for credit losses; competitive pressure among depository institutions increases significantly; changes in regulatory environment and/or regulatory compliance burden; changes in consumer spending, borrowings and savings habits; a change in the interest rate environment reduces interest margins; asset/liability repricing risks and liquidity risks; general economic conditions, particularly those affecting real estate values, either nationally or in the market areas in which we do business, are less favorable than expected; loss of key personnel; the effects of and changes in monetary and fiscal policies and laws, including the interest rate policies of the Federal Reserve Board; continued volatility in the credit or equity markets and its effect on the general economy; demand for the products or services offered by the Bank; and the costs and effects of legal, accounting and regulatory developments.
View source version on businesswire.com: https://www.businesswire.com/news/home/20200429005184/en/
Craig Wanichek, President & Chief Executive Officer 541-684-7500
Source: Summit Bank