SUMMIT BANK REPORTS 2021 3RD QUARTER EARNINGS

October 20, 2021 EUGENE, Ore.-(BUSINESS WIRE)-Summit Bank (OTC Pink: SBKO)

• Q3 2021 Net Income - $2.92 million or $0.38 per fully diluted share.
• Year to date Net Income - $7.84 million or $1.03 per fully diluted share.
• Trailing 12 month Net Income - $11.32 million or $1.49 per fully diluted share.
• Trailing 12 month Net Loan Growth - $97.2 million or 20.2 percent (excluding PPP loans).
• PPP loans outstanding - $40.4 million out of $180.9 million total originations during 2020 and 2021.
• Q3 2021 Three month deposit growth - $98.5 million or 13.5 percent over Q2 2021.

Earnings for Q3 2021 exceeded the similar period last year by $863,000, an increase of 41.9 percent or $0.11 per fully diluted share. Year-to-date earnings are up 76.3 percent, which is an increase of $0.40 over the same period in 2020. The earnings improvement was driven by sharply lower provision for loan losses compared to 2020 and strong growth in the Bank's loan portfolio, excluding Paycheck Protection Program (PPP) activity, as well as ongoing fee income from the Bank's PPP loans.

"We are pleased to see that signs are continuing to point to an economic resurgence for our clients," says President & CEO Craig Wanichek. "We continued to have strong loan activity, during the third quarter. In addition, our relationship banking model is proving consistently valuable- we know our clients. We onboarded several new significant relationships this year, which has resulted in the growth of core deposits and loans. Our bankers are out visiting with our clients to address their evolving needs as the economy returns to normal and demand for business financing grows."

Total net loans as of September 30, 2021, were $619.6 million, which includes $40.4 million of PPP loan balances. Net loans excluding PPP loans grew by $31.7 million or 5.8 percent during the quarter and by $97.2 million or 20.2 percent since September 30^, 2020. Deposit growth also remains extremely high with total deposits increased by $200.1 million or 31.9 percent over the trailing 12 month period. The Bank has been successful in maintaining strong and consistent profitability concurrent with its recent rapid balance sheet growth with a return on average equity of 16.8 percent during Q3 2021 following 15.2 percent during Q2 2021 and 14.3 percent for the 2020 fiscal year. The Bank is currently in its ninth consecutive year yielding a return on equity in excess of 10 percent.

Summit's continued robust earnings have supported its asset growth during the quarter and thus the Bank's capital position remains strong, with total shareholders' equity ending the quarter at $71.2 million, an increase of $3.0 million over the last three months, and an increase of $11.6 million over the last 12 months. Liquidity remains extremely high with cash and short-term investments as of September 30, 2021, at $247.4 million or 39.9 percent of total net loans.

The Bank continues to hold very low levels of non-performing assets with total non-performing assets at September 30, 2021, representing just 0.05 percent of total assets, down from 0.26 percent and 0.08 percent on December 31, 2020, and June 30, 2021, respectively.