Summit Bank Group Reports Record Quarterly Earnings in 3rd Quarter of 2026

Deposit costs fell and lending margins widened, while higher operating expenses partly offset the earnings improvement.

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

• Q3 2026 Net Income – $4.65 million or $0.58 per fully diluted share, an increase of 16.5 percent over Q3 2025.
• Year to date 2026 earnings per fully diluted share of $1.68, an increase of 29.3 percent over the previous year.
• Cash and Securities total $199.6 million – 14.5 percent of assets, increased from 13.1 percent as of Q3 2025.
• Year over year Net Loan Growth – $52.9 million or 4.8 percent.
• Year over year Deposit Growth – $65.4 million or 5.7 percent.
• Year to date 2026 Net Interest Income increased $2.2 million or 7.7 percent over the previous year.
• Year to date Provision for Loan Losses decreased by $2.1 million or 38.1 percent compared to the previous year.

Summit Bank Group reported net income for the third quarter of $4.65 million or 58 cents per fully diluted share. Comparable earnings for third quarter of 2025 were $3.94 million or 50 cents per fully diluted share, representing an increase of 18.0 percent or 8 cents to earnings and earnings per fully diluted share, respectively. Improvements in net interest income (higher by $1.1 million or 7.6 percent over the previous year) and provision for loan losses (lower by $0.7 million or 40 percent) during the quarter continued trends from the previous quarter, extending the year to date improvement in net income to $3.15 million or 30.9 percent over the first nine months of 2025.

“We are pleased to report another positive quarter of financial results,” said Craig Wanichek, president and CEO. “Our business focused model has resulted in 11 consecutive quarters of trailing 12-month increases in earnings.”

The Bank continues to achieve balanced growth in its loan and deposit portfolios, with total net loans increasing by $52.9 million or 4.8 percent and total deposits increasing by $65.4 million or 5.7 percent over the most recent four quarters. The deposit growth consisted entirely of demand and money market account balances over the period (increasing by $87.4 million or 7.9 percent) as total certificates of deposit balances decreased by $21.9 million. “Solid loan growth from new and current clients combined with improvement in deposit mix and growth in demand deposits resulted in a record quarter,” said Wanichek.

“The Bank experienced nearly twice the non-scheduled loan pay-off activity so far this year as compared to 2025,” said Wanichek. “We are very comfortable with increased loan growth given our current very healthy capital and liquidity position. We are pleased with the solid loan production during the third quarter, particularly in an environment marked by loan payoff activity. Despite elevated payoffs, our bankers continue to generate strong new business opportunities, reflecting healthy demand and the strength of our client relationships. The Bank’s balance sheet remains highly liquid with cash and Available for Sale (AFS) short-term securities totaling $199.6 million, which represents 14.5 percent of total assets as of September 30^th, 2026, increased from $169.5 million or 13.1 percent of assets as of September 30^th 2025. Additionally, the Bank maintains secured borrowing commitments from the Federal Home Loan Bank and the Federal Reserve Bank with total available borrowing capacity as of September 30^th, 2026, of $411 million, an increase of $72 million over the September 30^th, 2025, total available. Combined, the Bank’s cash and available secured borrowing as of September 30^th, 2026, total $560 million. This total is 40.7 percent of total assets and 144 percent of total estimated uninsured deposits as of September 30^th, 2026.

Return on average equity for the third quarter, the 2026 year to date and the trailing four quarters was 13.6 percent, 13.5 percent, and 13.5 percent, respectively. Total shareholders’ equity ended the third quarter at $138.7 million, an increase of $18.6 million or 15.6 percent since September 30^th, 2025. As the Company continues its 23^rd year of operations, capital levels remain very strong, supporting its consistent asset growth with similarly strong retained earnings which have totaled $67.2 million over the last five years.

Total non-performing assets as of September 30^th, 2026, total 0.43 percent of total assets. This total decreased slightly during the third quarter from 0.46 percent of total assets as of June 30^th, 2026. Substantially all of the Bank’s total non-performing assets as of September 30^th, 2026, carry US Small Business Administration guarantees which reduce the Bank’s exposure to losses on the assets. The total exposure to the Bank after such federal guarantees are applied is reduced to 0.12 percent of total assets.

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 sixth year in a row as one of Oregon’s “Top 100 Companies to Work For,” according to Oregon Business Magazine. In 2023, 2025, and again this year, Summit Bank was honored as “Favorite Bank” in the Eugene Register-Guard’s annual Reader’s Choice Awards and “Best Bank” by Central Oregon’s Bend Bulletin. Summit Bank Group Inc. is quoted on the OTCID under the symbol SBKO. It was named in January as a Top 10 Place to Work for Working Parents, according to the Eugene Area Chamber of Commerce.

QUARTERLY FINANCIAL REPORT – September 30th 2026
(in thousands except per share data)					Unaudited				Unaudited				Unaudited
					As of				As of				As of
Summary Statements of Condition					Sep. 30, 2026				Jun. 30, 2026				Sep. 30, 2025
Cash and short term investments					$	170,045			$	123,465			$	127,828
Securities						29,510				30,006				41,720
Loans:
Commercial						333,386				329,612				365,085
Commercial real estate						756,795				773,620				408,884
Other						68,209				54,457				331,179
Loan loss reserve and unearned income						(13,189	)			(13,088	)			(12,876	)
Total net loans						1,145,201				1,144,602				1,092,272
Property and other assets						31,945				31,665				29,560
Repossessed property						62				81				131
	Total assets				$	1,376,763			$	1,329,818			$	1,291,511
Deposits:
Noninterest-bearing demand					$	216,060			$	204,669			$	193,303
Interest-bearing demand						976,577				940,898				911,958
Certificates of deposit						13,671				16,441				35,606
	Total deposits					1,206,308				1,162,009				1,140,866
Subordinated debt						18,551				18,541				18,513
Other liabilities						13,205				15,464				12,111
Shareholders' equity						138,699				133,804				120,020
	Total liabilities and shareholders' equity				$	1,376,763			$	1,329,818			$	1,291,511
Book value per share					$	17.58			$	16.96			$	15.39
					Unaudited				Unaudited				Unaudited				Unaudited				Unaudited
					For the nine months ended				For the three months ended				For the nine months ended				For the three months ended				For the three months ended
Summary Statements of Income					Sep. 30, 2026				Jun. 30, 2026				Sep. 30, 2025				Sep. 30, 2026				Sep. 30, 2025
Interest income					$	61,832			$	20,668			$	60,778			$	21,290			$	20,764
Interest expense						(16,525	)			(5,623	)			(18,699	)			(5,600	)			(6,181	)
	Net interest income					45,307				15,045				42,079				15,690				14,583
Provision for loan losses						(3,505	)			(1,530	)			(5,663	)			(1,108	)			(1,851	)
Noninterest income						2,200				810				1,277				611				645
Noninterest expense						(25,774	)			(8,676	)			(23,783	)			(8,843	)			(7,998	)
	Net income before income taxes					18,228				5,648				13,910				6,350				5,379
Provision for income taxes						(4,889	)			(1,518	)			(3,721	)			(1,698	)			(1,439	)
	Net income				$	13,339			$	4,130			$	10,190			$	4,652			$	3,941
	Net income per share, basic				$	1.70			$	0.52			$	1.31			$	0.59			$	0.51
	Net income per share, fully diluted				$	1.68			$	0.52			$	1.30			$	0.58			$	0.50
					Unaudited				Unaudited				Unaudited				Unaudited				Unaudited
					For the nine months ended				For the three months ended				For the nine months ended				For the three months ended				For the three months ended
Performance Ratios					Sep. 30, 2026				Jun. 30, 2026				Sep. 30, 2025				Sep. 30, 2026				Sep. 30, 2025
Return on Average Assets						1.34	%			1.23	%			1.09	%			1.38	%			1.16	%
Return on Average Tangible Common Equity						13.50	%			12.55	%			11.89	%			13.66	%			13.37	%
Net Interest Margin						4.87	%			4.86	%			4.68	%			5.07	%			4.78	%
Yield on Earning Assets						6.64	%			6.67	%			6.76	%			6.88	%			6.81	%
Cost of Deposits						1.84	%			1.86	%			2.20	%			1.84	%			2.15	%
Efficiency Ratio						53.6	%			55.4	%			54.2	%			53.5	%			51.9	%
EPS Growth (YoY)						29.3	%			22.6	%			22.1	%			16.5	%			23.3	%
Asset Quality
Non-performing assets to Total Assets						0.43	%			0.46	%			0.37	%			0.43	%			0.37	%
Net Charge Offs to Average Loans						0.35	%			0.65	%			0.49	%			0.20	%			0.41	%
Reserve to Total Loans						1.18	%			1.18	%			1.31	%			1.17	%			1.28	%
Provision Expense to Total Loans						0.41	%			0.93	%			0.69	%			0.39	%			0.67	%
Capital
Tier 1 Capital to Risk Weighted Assets						13.0	%			12.6	%			11.9	%			13.0	%			11.9	%
Community Bank Leverage Ratio (CBLR)						11.6	%			11.3	%			10.9	%			11.6	%			10.9	%
Average Balances
Loans					$	1,135,359			$	1,139,227			$	1,087,684			$	1,147,367			$	1,109,217
Assets					$	1,328,354			$	1,339,877			$	1,251,040			$	1,349,361			$	1,269,152
Deposits					$	1,165,215			$	1,177,237			$	1,106,205			$	1,181,511			$	1,120,333

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20261021545952/en/

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

Source: Summit Bank Group