Summit Bank (OTC Pink: SBKO) reported net income for the fiscal year ended December 31, 2019 of $5.62 million or $1.07 per fully diluted share.
Summit Bank grew to $507 million in assets, up 22%, or $91 million from fiscal-year end 2018. Summit also became the fourth largest bank headquartered in the State of Oregon in 2019, up from number seven. 2019 earnings were slightly below fiscal 2018 earnings of $5.76 million or $1.10 per share as startup expenses and year one operating results associated with the Bank’s expansion into downtown Portland impacted earnings by approximately $0.22 per fully diluted share. In addition, the Bank incurred an expense of approximately $0.04 per fully diluted share, associated with an accrual in regards to a compliance matter in our equipment finance area.
Summit achieved its seventh consecutive year of annual loan growth in excess of 20 percent during 2019. Total net loans as of December 31, 2019, were $437.4 million, representing a 27.9 percent increase over the fiscal 2018 total of $342.1 million. Deposit growth was similarly strong, with total deposits increasing by $80.1 million or 21.6 percent over the previous year. The Bank has maintained consistent profitability in conjunction with its rapid growth, with return on average equity for 2019 of 12.8 percent.
“The overall growth of Summit has been extremely exciting,” said Craig Wanichek, president and chief executive officer. “Our established markets, Eugene/Springfield and Central Oregon had very good years. Eugene grew assets 14%, with deposits up over $47 million and Central Oregon grew assets an outstanding 41%. We are also very pleased with the progress in the Portland Market. The team has made great strides in establishing our brand in the local area. Our business clients in all three markets identify with our value proposition of being the business bank of choice.”
Summit’s liquidity and capital positions have remained strong as deposit growth has supported the Bank’s loan growth and operating earnings have similarly increased with the Bank’s growth. Cash and short term investments remain strong as of fiscal year end 2019, at $55 million, or 12.6 percent of total net loans. Similarly, during 2019, total shareholders’ equity increased by $6.3 million to $46.8 million, an increase of 15.5 percent.
The Bank continues to hold very low levels of non-performing assets, with total non-performing assets at December 31st, 2019 representing just 0.18 percent of total assets, a decrease from 0.55 percent at December 31st 2018.
Summit Bank, with offices in Eugene, Bend and downtown Portland, specializes in providing high-level service to professionals, non-profits, businesses and their owners. Summit Bank is quoted on the NASDAQ Over-the-Counter Bulletin Board as SBKO.