SBKO Summit Bank Group Inc (PK)

Summit Bank (OTCBB:SBKO) reported net income for the third quarter of $621 thousand or 28 cents per fully diluted share, an increase of 32 percent over the third quarter of 2013. Earnings for the comparable period one year ago were $471 thousand, or 23 cents per fully diluted share. Year to date earnings for 2014 were $1.7 million, or 79 cents per fully diluted share, compared to 44 cents per share for the same period in 2013. Year to date return on average assets and return on average equity were 1.4 percent and 15.2 percent, respectively. Fully diluted earnings per share for the trailing four quarters totaled $1.07.

“We are proud to be one of the few banks in the country generating this level of growth and return without lowering our loan loss reserves,” said Craig Wanichek, president and CEO of Summit Bank. “We are also pleased to continue to add great new relationships as a result of our common sense approach to banking.”

The bank experienced robust growth in its loan and deposit portfolios over the past twelve months. Total net loans as of September 30, 2014, were $137.4 million, representing a 19.2 percent increase over the September 30, 2013, total of $115.3 million. Total deposits increased by $23.2 million or 17.6 percent over the previous year. Summit’s capital base continues to grow in step with the bank’s steady asset growth and is driven by consistently strong earnings over the last six quarters. Total shareholders’ equity at September 30, 2014, was $16.2 million, an increase of 20.4 percent or $2.7 million over September 30, 2013.

“Governor Kitzhaber proclaimed this week as Community Bank Week in Oregon,” Wanichek said. “We are proud to be a community bank and what that means; our client’s deposits and Summit’s bankers working together to help local businesses thrive. It is that service model that has enabled us to achieve our seventh consecutive quarter of double-digit loan growth.”

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 foreclosed real estate, measured as a percentage of assets, stands at 0.4 percent on September 30, 2014, compared to 1.2 percent one year ago.

Headquartered in Eugene at 96 East 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.

(in thousands except per share data)   Unaudited   Unaudited As of As of Summary Statements of Condition Sep. 30, 2014 Sep. 30, 2013 Cash and short term investments $ 23,855 $ 20,669 Securities 6,238 7,389 Loans: Commercial 48,395 32,639 Commercial real estate 74,886 64,337 Other 16,674 20,393 Loan loss reserve and unearned income   (2,537 )   (2,089 ) Total net loans 137,418 115,281 Property and other assets 6,843 6,780 Repossessed property   723     32   Total assets

$

175,077

  $ 150,150     Deposits: Noninterest-bearing demand $ 53,558 $ 46,018 Interest-bearing demand 87,755 81,795 Certificates of deposit   13,527     3,868   Total deposits 154,839 131,681 Other liabilities 4,030 5,005 Shareholders' equity   16,208     13,464   Total liabilities and shareholders' equity $ 175,077   $ 150,150     Book value per share $ 7.47 $ 6.49   Unaudited Unaudited For the nine months ending For the nine months ending Summary Statements of Income Sep. 30, 2014 Sep. 30, 2013 Interest income $ 6,212 $ 4,806 Interest expense   (184 )   (168 ) Net interest income 6,028 4,639 Provision for loan losses (319 ) (606 ) Noninterest income 765 572 Noninterest expense   (3,713 )   (3,190 ) Net income before income taxes   2,761     1,415   Provision for income taxes (1,034 ) (519 ) Net income $

1,727

  $ 896     Net income per share, basic $ 0.81 $ 0.44 Net income per share, fully diluted $ 0.79 $ 0.44

Summit BankPresident & Chief Executive OfficerCraig Wanichek, 541-684-7500