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Summit Bank Group Reports 2024 4th Quarter Earnings

EUGENE, Ore.--(BUSINESS WIRE)-- Summit Bank Group (OTC Pink: SBKO)

Summit Bank Group Reports 2024 4th Quarter Earnings (Graphic: Business Wire)

• Q4 2024 Net Income - $3.01 million or $0.39 per fully diluted share an increase of 78.7 percent over 4th quarter 2023.
• 2024 Fiscal Year Net Income - $11.3 million or $1.45 per fully diluted share, an increase of $2.39 million or $0.30 per share over the fiscal year 2023.
• Year over year Net Loan Growth - $127.7 million or 14.0 percent.
• Year over year Deposit Growth - $196.9 million or 21.5 percent.
• Cash and securities total $180.8 million 鈥� 14.4 percent of assets.

Summit Bank Group reported net income for the fourth quarter of $3.01 million or 39 cents per fully diluted share. Fourth quarter net income was $1.33 million or 17 cents per fully diluted share higher than the similar period in 2023, representing a 78.7 percent improvement over the fourth quarter of 2023, with lower loan related losses in our commercial equipment finance business during the fourth quarter of 2024 compared to the previous year being the primary driver of the earnings improvement. The reduced losses, including losses on sales of repossessed collateral, for the quarter compared to the similar period in 2023 increased fully diluted earnings per share by 11 cents.

The strong fourth quarter results increased the Company鈥檚 improvement in year-to-date earnings and earnings per share compared to 2023, which were higher by $2.39 million or 30 cents per share; an improvement of 26.2 percent. Fiscal year earnings improvement over 2023 includes a non-recurring gain on retirement of subordinated debt during the second quarter of 2024 that increased earnings by 4 cents per share.

Net Interest Income for the fourth quarter and the fiscal year also showed strong improvement over the similar periods in 2023 as the Bank added new relationships during the year. Net interest income for the fiscal year increased by $4.46 million or 9.6 percent and by $1.35 million or 11.0 percent for the fourth quarter compared to 2023. 鈥淥ur stronger net interest income this quarter reflects the success of Summit Bank鈥檚 relationship-focused approach,鈥� said President and Chief Executive Officer Craig Wanichek. 鈥淏y growing new clients in all of our markets and deepening our relationships with existing ones, we鈥檝e been able to grow our loan and deposit portfolios responsibly and deliver sustainable value to our clients and shareholders.鈥�

Retention and growth of existing clients鈥� balances, as well as adding new client deposit relationships meant the Bank was successful in growing deposits in 2024 with growth in total deposits of $196.9 million or 21.5 percent since December 31^, 2023. As part of this strategy and to meet the growing demand for community-based business banking, the Company opened two full services offices in 2024: one in Washington County in Hillsboro and the other in downtown Redmond. These new offices played an important role in adding strong deposit growth, which allowed the Company to continue to grow its loan portfolio and maintain a highly liquid balance sheet during the year. Cash and Securities ended 2024 at $180.8 million or 14.4 percent of total assets, which was $45.9 million higher than December 31^, 2023. The Bank maintains secured borrowing commitments from the Federal Home Loan Bank and the Federal Reserve Bank with total available borrowing capacity as of December 31^, 2024, of $308 million, increased from its December 31^, 2023, total available of $253 million. Combined, the Company鈥檚 cash and available secured borrowing as of December 31^, 2024, total $439 million. This total is 35.0 percent of total assets and 115.0 percent of total estimated uninsured deposits as of December 31^, 2024.

Total net loans as of December 31^, 2024, were $1.04 billion representing a 14.0 percent year over year increase. Loan growth has slowed compared to previous years that featured ten consecutive quarters of year over year loan growth exceeding 20.0 percent. A decline in acquisition, development and construction loans activity during the second and third quarters of 2024 was the primary driver of the slower loan growth pace for the fiscal year.

Return on average equity for the fourth quarter and the trailing four quarters was 11.3 percent and 11.1 percent respectively. Total shareholders鈥� equity ended the fourth quarter at $108.7 million, an increase of $13.1 million or 13.7 percent since December 31^, 2023. The Company has produced greater than 10.0 percent return on equity during all but three quarters over the last eleven years while growing total loans at a compounded annual growth rate of 21.8 percent.

Total non-performing assets as of December 31^, 2024, continued to decline modestly during the fourth quarter to 0.20 percent of total assets after ending the two previous quarters of 2024 at 0.23 and 0.27 percent respectively. Total non-performing assets decreased slightly from 0.22 percent of total assets as of December 31, 2023.

The Bank鈥檚 commercial real estate portfolio continues to perform well, with multifamily and industrial loans comprising nearly half of a balanced mix of property types. Refinance and interest rate risk is limited as only 17 percent of the portfolio matures or has a rate reset prior to 2027.

Summit Bank does not have any Non-Owner-Occupied office loan exposure in downtown Portland. 鈥淥ur portfolio is built on prudent lending practices and a strategic focus on markets and property types that align with our long-term risk management approach,鈥� said Wanichek.

Summit Bank Group Inc., through its wholly owned subsidiary Summit Bank, maintains offices in Eugene, Central Oregon, and Portland, specializing in providing high-level service to professionals and medium-sized businesses and their owners. The Bank was voted for the fourth year in a row as one of Oregon鈥檚 鈥淭op 100 Companies to Work For,鈥� according to Oregon Business Magazine. In 2023, 2024 and 2025, Summit Bank was honored as 鈥淔avorite Bank鈥� in the Eugene 搁别驳颈蝉迟别谤-骋耻补谤诲鈥檚 annual Reader鈥檚 Choice Awards and 鈥淏est Bank鈥� by Central Oregon鈥檚 Bend Bulletin. Summit Bank Group Inc. is quoted on the OTCPK under the symbol SBKO

Forward Looking Statements

This press release contains certain forward-looking statements about the Company and the Bank. Forward-looking statements include statements regarding anticipated future events or results and can be identified by the fact that they do not relate strictly to historical or current facts. Forward-looking statements, by their nature, are subject to risks and uncertainties. Certain factors that could cause actual results to differ materially from expected results include increased competitive pressures, inflation, changes in the interest rate environment, general economic conditions or conditions within the securities markets, potential recessionary conditions, changes in asset quality, charge-offs and credit loss provisions, changes in demand for our products and services, availability of low-cost funding, legislative, accounting, tax and regulatory changes, including changes in the monetary and fiscal policies of the Board of Governors of the Federal Reserve System, political developments, uncertainties or instability, catastrophic events, acts of war or terrorism, natural disasters or breach of our operational or security systems or infrastructure, including cyberattacks that could adversely affect the Company鈥檚 financial condition and results of operations and the business in which the Company and the Bank are engaged.

Accordingly, you should not place undue reliance on forward-looking statements. The Company undertakes no obligation to revise these forward-looking statements or to reflect events or circumstances after the date of this press release.

QUARTERLY FINANCIAL REPORT 鈥� December 31^, 2024

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View source version on businesswire.com:

Craig Wanichek, President & Chief Executive Officer 541-684-7500

Source: Summit Bank Group