News Column

Summit Bank profits more than double

July 26, 2014

By Ilene Aleshire, The Register-Guard, Eugene, Ore.

July 26--Summit Bank's profits more than doubled in the second quarter of this year compared to last.

The Eugene-based bank reported a profit of $681,000 or 31 cents per share, for the quarter that ended June 31, compared to $316,000 or 16 cents per share for the second quarter of 2013.

Earnings for the second quarter of this year got a boost from recoveries of loans that had previously been charged off and from a gain on the sale of commercial loans, bank officials said.

For the year to date, Summit reported earnings of $1.1 million, or 51 cents per share, compared to 21 cents per share for this time last year.

"The addition of a number of new significant relationships drove (a) 32 percent increase in top-line revenue," CEO Craig Wanichek said in a prepared statement.

The bank also has been able to keep a lid on expenses, which are growing much more slowly than its revenues, Wanichek said.

Both loans and deposits are showing strong growth, he said. Total net loans as of June 30 were $131.4 million, up 14.4 percent over a year ago.

Demand deposits -- those that are readily available to depositors on demand, such as checking accounts -- increased by $25.4 million or 23 percent over last year, the bank reported.

We are pleased to see continued growth in our loans," Wanichek said, "This increase represents the strength of our current clients' businesses and the bank's obtaining new relationships. The expansion and success of our current and new clients also is reflected in the bank's growth in deposits."

The bank has a very low level of problem loans, he said. Loans that are 90 days past due or not being paid, plus foreclosed real estate, amounted to 0.5 percent of the bank's assets as of June 30, compared to 1.3 percent a year ago, he said.

Summit plans to add a new product in the third quarter, "mobile deposit capture." which will allow clients to use their phones to take pictures of checks and deposit them directly into their accounts," Chief Banking Officer Mike Mercer said.

Summit's target market is professionals and medium-sized businesses and their owner. It stock trades on the NASDAQ Over-the-Counter Bulletin Board under the ticker symbol SBKO


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Source: Register-Guard (Eugene, OR)

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