Summit Bank Group Reports 2022 First Quarter Earnings

Summit Bank Group (OTC Pink: SBKO):

• Q1 2022 Net Income - $2.7 million or $0.35 per fully diluted share.
• Trailing twelve months Net Income - $11.2 million or $1.47 per fully diluted share.
• Year over year Net Loan Growth - $116.0 million or 22.4 percent (excluding PPP loans)
• PPP loans outstanding - $3.7 million out of $180.9 million total originations during 2020 and 2021.
• Year over year Deposit Growth - $134.0 million or 19.2 percent over March 31^st 2021

Summit Bank Group reported net income for the first quarter of $2.73 million or 35 cents per fully diluted share. Comparable earnings for the first quarter of 2021 were $2.37 million or 31 cents per fully diluted share, representing an increase of 15 percent to earnings and 14 percent to earnings per fully diluted share. Excluding all Paycheck Protection Program (PPP) loan related income, Q1 2022 tax equivalent earnings would have been $2.57 million, an increase of $796 thousand, 44.9 percent or $0.08 per fully diluted share over Q1 2021. PPP loan related income in total comprised only 2.2 percent of total Company net interest and non-interest income during the first quarter of 2022 compared to 10.2 percent during the first quarter of 2021.

“As a team over the challenging last two years, we have relied heavily on communication with our clients and prospects. We understand their strategic plans, which has enabled Summit to significantly grow its loan and deposit portfolios,” said Craig Wanichek, president and CEO. “The strong loan growth combined with historically low loan loss are the primary drivers of the earnings growth during the first quarter of 2022.”

Total net loans as of March 31^st, 2022, were $637.7 million, which included $3.7 million of PPP loan balances. Net loans excluding PPP loans grew by $25.3 million or 4.1 percent during the first quarter and by $116.0 million or 22.4 percent since March 31^st, 2021. Deposit growth also remains robust with total deposits increasing by $35.7 million or 4.5 percent during the first quarter and by $134.0 million or 19.2 percent since March 31^st, 2021. The Company has been successful in maintaining strong and consistent profitability concurrent with its recent rapid balance sheet growth with return on average equity of 14.5 percent during Q1 2022 following 16.7 percent during Q4 2021 and 15.9 percent for the 2021 fiscal year. The Company is currently in its 10^th consecutive year producing a return on equity in excess of 10 percent.

“We were pleased to announce the hiring of Aaron Walker as Chief Credit Officer during the quarter,” said Wanichek. “Aaron has a deep and broad credit background in all of our markets and with our types of loans.”

The Company’s strong earnings continue to support asset growth with total shareholders’ equity ending the first quarter at $74.4 million, an increase of $8.8 million or 13.5 percent since March 31^st, 2021. Liquidity remains extremely high with cash and short term investments as of March 31^st, 2022 at $208.0 million or 32.6 percent of total net loans.

The Bank continues to hold very low levels of non-performing assets with total non-performing assets at March 31^st, 2022 representing just 0.05 percent of total assets, unchanged from December 31^st, 2021 and down from 0.27 percent March 31^st 2021.

“The commitment of our team members and the culture they have created led Summit Bank to being recognized by Oregon Business Magazine as one of the Top 100 Best Companies to Work for in Oregon as well as one of The Top 100 Best Green companies in the State,” said Wanichek. “In addition, Eugene Market President Jenny Bennett was recognized as one of the 20 Most Influential Women Business Leaders in the State of Oregon,” according to the Portland Business Journal.

Summit Bank Group Inc., through its wholly owned subsidiary Summit Bank, maintains offices in Eugene, Central Oregon and Portland, and specializes in providing high-level service to professionals and medium-sized businesses and their owners. Summit Bank Group Inc. is quoted on the NASDAQ Over-the-Counter Bulletin Board as SBKO.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220420005161/en/