Summit Bank Group (OTC Pink: SBKO):

• Q4 2022 Net Income – a record $3.84 million or $0.50 per fully diluted share
• Year to date Net Income – a record $13.55 million or $1.76 per fully diluted share
• Year over year Net Loan Growth - $131.3 million or 21.6 percent (excluding PPP loans)
• Year over year Deposit Growth - $62.4 million or 7.9 percent over December 31 2021

Summit Bank Group reported record quarterly net income for the fourth quarter of $3.84 million or 50 cents per fully diluted share. Comparable earnings for the fourth quarter of 2021 were $3.0 million or 40 cents per fully diluted share, representing increases of 27 percent and 26 percent to earnings and earnings per fully diluted share, respectively. Year to date net income for 2022 was $13.55 million or $1.76 per fully diluted share, also a record and representing an increase of $2.68 million or 25 percent over the similar period during 2021.

Summit successfully concluded its PPP loan program during 2022 with total PPP-related income during the year contributing just 3 cents per share compared to fiscal 2021, where PPP interest and fee income represented 36 cents per share. Fully diluted earnings per share growth, excluding PPP related income, for 2022 over 2021 was 67 cents for an increase of 63 percent.

“Growing loans over 21% this year in a very dynamic interest rate environment is the result of our team working closely with clients, being nimble and making decisions locally,” said Craig Wanichek, president and CEO. “Delivering on our mission of being Oregon’s community business bank of choice has been our primary objective in 2022. With a proven business model that has delivered double-digit annual growth over the last nine years, we feel the timing is right for Summit Bank to expand our relationship-based approach to small and medium sized businesses, professional and medical firms and nonprofits to Washington County.” Summit Bank has opened a loan and deposit production office in Washington County at 1915 NE Stucki Avenue Suite 155, Hillsboro.

Total net loans as of December 31, 2022, were $740.1 million. Net loans grew by $31.8 million or 4.5 percent during the fourth quarter and by $131.3 million or 21.6 percent since December 31, 2021, excluding PPP loans. Deposit growth has slowed during 2022 as clients have deployed excess cash reserves accumulated during the pandemic. Total deposits decreased during the fourth quarter by $13.5 million or 1.6 percent while still increasing by $62.4 million or 7.9 percent since December 31, 2021.

Concurrent with the rapid balance sheet growth, the Company continues to produce strong and consistent profitability with return on average equity of 17.3 percent during fiscal 2022 and an 18.5 percent return on average equity during the fourth quarter of 2022. Return on average equity was 15.8 percent for the 2021 fiscal year and 16.6 percent during Q4 2021. Summit Bank is currently in its tenth consecutive year producing a return on equity in excess of 10 percent.

The Company’s strong earnings continue to support its asset growth with total shareholders’ equity ending the fourth quarter at $84.6 million, an increase of $10.4 million or 14.0 percent since December 31, 2021. Summit Bank Group’s total equity capital as of December 31, 2022 has increased by $37.8 million from $46.8 million at December 31, 2019, resulting from a combination of a successful common stock offering during 2021 and $32.4 million in retained earnings over the three year period. Following a period of historic and unprecedented elevated liquidity during the pandemic, liquidity levels eased during the fourth quarter of 2022. Cash and short term investments as of December 31, 2022 total $138.5 million or 18.7 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, 2022 representing just 0.11 percent of total assets, up slightly from September 30, 2022 and December 31, 2021 levels of 0.07 percent and 0.05 percent respectively.

Summit Bank Group Inc., through its wholly owned subsidiary Summit Bank, maintains offices in Eugene, Bend and 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. Summit Bank, for three years in a row, has been ranked as a Top 100 Place to Work in Oregon, according to Oregon Business Magazine.

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