Summit Bank Group (OTC Pink: SBKO)

• Q4 2021 Net Income - $3.04 million or $0.40 per fully diluted share
• Fiscal year Net Income - $10.87 million or $1.42 per fully diluted share
• Fiscal year Net Loan Growth - $97.3 million or 19.0 percent (excluding PPP loans)
• PPP loans outstanding - $9.9 million out of $180.9 million total originations during 2020 and 2021
• Fiscal year Deposit Growth - $137.6 million or 20.9 percent over December 31^st 2020

Fiscal year 2021 earnings per fully diluted share were up 28.7 percent or an increase of $0.32 over last year. The earnings improvement was driven by sharply lower provision for loan losses compared to 2020, exceptional growth in the Bank’s loan portfolio, excluding all Paycheck Protection Program (PPP) activity, as well as ongoing income from the Bank’s PPP loans. Earnings for Q4 2021 were lower than the similar period last year by $454 thousand. Excluding all PPP loan related income, Q4 2021 tax equivalent earnings would have been $2.36 million, an increase of $428 thousand, 22.2 percent, or $0.05 per fully diluted share over Q4 2020.

Total net loans as of December 31^st, 2021, were $618.6 million, which included $9.9 million of PPP loan balances. Net loans excluding PPP loans grew by $29.6 million or 5.1 percent during the fourth quarter and by $97.3 million or 19.0 percent since December 31^st, 2020. Deposit growth also remains extremely high with total deposits increasing by $137.6 million or 20.9 percent during the fiscal year. 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 16.7 percent during Q4 2021 following 16.8 percent during Q3 2021 and 14.3 percent for the 2020 fiscal year. The Company is currently in its ninth consecutive year producing a return on equity in excess of 10 percent.

“We are pleased to deliver another quarter of strong organic loan growth,” said Craig Wanichek, president and CEO. ”Operating successfully through COVID-19 while keeping our clients and colleagues safe continues to be our primary objective.”

The Company completed a $20 million private placement of ten year fixed to floating subordinated notes during the fourth quarter. The proceeds from the debt issuance will support the Company’s current and expected future growth.

“The support of our subordinated debt offering was a testament to the results of the Bank, low non-performing assets and our position in the markets where we operate,” said Wanichek. “Our clients continue to perform extremely well, resulting in very solid credit metrics.”

The Company’s robust earnings during 2021 have supported asset growth during the year with total shareholders’ equity ending the year at $74.2 million, an increase of $3.0 million during the fourth quarter and an increase of $11.1 million during the 2021 fiscal year. Liquidity remains extremely high with cash and short term investments as of December 31^st, 2021 at $195.1 million or 31.6 percent of total net loans.

The Bank continues to hold very low levels of non-performing assets with total non-performing assets at December 31^st, 2021 representing just 0.05 percent of total assets, unchanged from September 30^th, 2021 and down from 0.26 percent December 31^st 2020.

Summit Bank Group Inc., through its wholly owned subsidiary Summit Bank, maintains offices in Eugene, Bend and downtown 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.

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