Summit Bank Corporation Reports Quarterly Earnings

Apr 30, 2001, 01:00 ET from Summit Bank Corporation

    ATLANTA, April 30 /PRNewswire/ -- Summit Bank Corporation (Nasdaq: SBGA)
 (the "Company" or "Summit") today reported first quarter 2001 earnings of
 $798,000 compared to $877,000 for the first quarter of 2000.  The decline is
 largely due to certain non-recurring charges totaling $260,000 which the
 Company recorded during first quarter 2001.  Diluted earnings per share for
 the quarter were $.40, compared to $.44 for the same period last year.
     Total assets of the Company increased 16% during the quarter to
 $329 million at March 31, 2001, fueled by strong deposit growth of nearly
 $41 million to $280 million.  Although certificates of deposit comprised most
 of this growth, Summit's non-interest bearing deposit base still represented
 over 22% of all deposits at quarter-end.  Net loans were $188 million at March
 31, 2001, up slightly from year-end 2000.  For the trailing twelve months,
 loans increased 11%, or $19 million.
     Rapid declines in market interest rates have resulted in a lower interest
 margin for the Company.  As the prime rate decreased 150 basis points during
 the first quarter, Summit's net interest margin declined to 4.6% compared to
 5.5% in the same period last year.
     Summit recorded a first quarter charge to earnings of $135,000 which
 represented costs associated with an attempted acquisition of an Atlanta
 competitor.  Discussions with that competitor regarding a possible merger have
 ceased.  Additionally, the Company recorded a charge of $125,000 this quarter
 as an impairment charge related to its non-banking subsidiary, CashMart, Inc.
 Lower than expected revenues for this operation have prompted Management, upon
 approval of the Board in April 2001, to take action to cease operation of this
 subsidiary by June 30, 2001.  An additional charge of approximately $75,000
 will be recorded in second quarter 2001 as this subsidiary's operations are
 brought to closure.
     On a positive note, Summit's non-performing assets declined to 1.0% at
 March 31, 2001, from 1.1% at year-end 2000, a decline of $293,000.  Chief
 Executive Officer Pin Pin Chau said, "Our historically strong interest margins
 are temporarily under pressure with the recent declines in the prime rate.  As
 we take steps to adjust our funding costs, our interest margin remains at a
 respectable level compared to our peers.  We are particularly encouraged that
 during this challenging rate environment our operating costs have remained
 stable, excluding the non-recurring charges this quarter.  While many
 financial institutions are experiencing credit quality issues, our level of
 non-performing assets has actually declined since year-end."  She continued,
 "Despite lower earnings this quarter, we feel core earnings remain fairly
 strong."
     Summit declared a 20% stock dividend during the quarter, increasing
 outstanding shares to 1,975,723, while still maintaining the quarterly cash
 dividend of $.18 per share.
     Summit Bank Corporation is the parent company of The Summit National Bank,
 a nationally chartered full-service community bank specializing in the small
 business and international trade finance markets.  The Bank has consistently
 been ranked as one of the leading SBA lenders in the state of Georgia for
 several years.  It currently operates four branches in the metropolitan
 Atlanta area and one branch in San Jose, California.
     This release contains certain forward-looking statements including
 statements relating to present or future trends or factors generally affecting
 the banking industry and specifically affecting Summit's operations,
 markets and products. Without limiting the foregoing, the words "believes,"
 "anticipates," "intends," "expects" or similar expressions are intended to
 identify forward-looking statements.  These forward-looking statements involve
 certain risks and uncertainties.  Actual results could differ materially from
 those projected for many reasons, including, without limitation, changing
 events and trends that have influenced Summit's assumptions, but that are
 beyond Summit's control. These trends and events include (i) changes
 in the interest rate environment which may reduce margins, (ii) not achieving
 expected growth, (iii) less favorable than anticipated changes in the national
 and local business environment and securities markets, (iv) adverse changes in
 the regulatory requirements affecting Summit, (v) greater competitive
 pressures among financial institutions in Summit's markets and (vi) greater
 loan losses than historic levels.  Additional information and other factors
 that could affect future financial results are included in Summit's
 filings with the Securities and Exchange Commission.
 
 
                            Summit Bank Corporation
                                     (SBGA)
 
 
                         Selected Financial Information
                                 March 31, 2001
 
     (In Thousands except per share data)
                                            March 31,                 %
                                     2001            2000           Change
 
     Total Assets                    328,576         277,595         18.4%
     Net Loans                       188,040         168,946         11.3%
     Investments                      89,064          69,405         28.3%
     Total Deposits                  280,021         227,357         23.2%
       Non-Interest Bearing           62,760          57,743          8.7%
       Interest Bearing              217,261         169,614         28.1%
     Stockholders' Equity             26,776          22,985         16.5%
 
 
     Loans as % Deposits              67.15%          74.31%
     Allowance for Loan Losses as
      % Total Loans                    1.59%           1.72%
     Nonperforming Assets as
      % Total Loans                    0.91%           0.67%
     Return on Average Assets          1.02%           1.27%
     Return on Average Equity         12.20%          15.50%
 
 
                                         Three Months Ended
                                            March 31,                 %
                                     2001             2000         Change
 
     Interest Income                   6,242           5,575         12.0%
     Interest Expense                  2,900           2,133         36.0%
     Net Interest Income               3,342           3,442         -2.9%
     Provision for Loan Losses           200             425        -52.9%
     Non-Interest Income               1,061           1,046          1.4%
     Non-Interest Expenses             2,983           2,718          9.7%
     Income Before Taxes               1,220           1,345         -9.3%
     Tax Expense                         422             468         -9.8%
     Net Income                          798             877         -9.0%
 
 
     Basic Earnings Per Share           0.40            0.44         -9.1%
     Diluted Earnings Per Share         0.40            0.44         -9.1%
     Dividend Per Share                 0.18            0.18          0.0%
 
 
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SOURCE Summit Bank Corporation
    ATLANTA, April 30 /PRNewswire/ -- Summit Bank Corporation (Nasdaq: SBGA)
 (the "Company" or "Summit") today reported first quarter 2001 earnings of
 $798,000 compared to $877,000 for the first quarter of 2000.  The decline is
 largely due to certain non-recurring charges totaling $260,000 which the
 Company recorded during first quarter 2001.  Diluted earnings per share for
 the quarter were $.40, compared to $.44 for the same period last year.
     Total assets of the Company increased 16% during the quarter to
 $329 million at March 31, 2001, fueled by strong deposit growth of nearly
 $41 million to $280 million.  Although certificates of deposit comprised most
 of this growth, Summit's non-interest bearing deposit base still represented
 over 22% of all deposits at quarter-end.  Net loans were $188 million at March
 31, 2001, up slightly from year-end 2000.  For the trailing twelve months,
 loans increased 11%, or $19 million.
     Rapid declines in market interest rates have resulted in a lower interest
 margin for the Company.  As the prime rate decreased 150 basis points during
 the first quarter, Summit's net interest margin declined to 4.6% compared to
 5.5% in the same period last year.
     Summit recorded a first quarter charge to earnings of $135,000 which
 represented costs associated with an attempted acquisition of an Atlanta
 competitor.  Discussions with that competitor regarding a possible merger have
 ceased.  Additionally, the Company recorded a charge of $125,000 this quarter
 as an impairment charge related to its non-banking subsidiary, CashMart, Inc.
 Lower than expected revenues for this operation have prompted Management, upon
 approval of the Board in April 2001, to take action to cease operation of this
 subsidiary by June 30, 2001.  An additional charge of approximately $75,000
 will be recorded in second quarter 2001 as this subsidiary's operations are
 brought to closure.
     On a positive note, Summit's non-performing assets declined to 1.0% at
 March 31, 2001, from 1.1% at year-end 2000, a decline of $293,000.  Chief
 Executive Officer Pin Pin Chau said, "Our historically strong interest margins
 are temporarily under pressure with the recent declines in the prime rate.  As
 we take steps to adjust our funding costs, our interest margin remains at a
 respectable level compared to our peers.  We are particularly encouraged that
 during this challenging rate environment our operating costs have remained
 stable, excluding the non-recurring charges this quarter.  While many
 financial institutions are experiencing credit quality issues, our level of
 non-performing assets has actually declined since year-end."  She continued,
 "Despite lower earnings this quarter, we feel core earnings remain fairly
 strong."
     Summit declared a 20% stock dividend during the quarter, increasing
 outstanding shares to 1,975,723, while still maintaining the quarterly cash
 dividend of $.18 per share.
     Summit Bank Corporation is the parent company of The Summit National Bank,
 a nationally chartered full-service community bank specializing in the small
 business and international trade finance markets.  The Bank has consistently
 been ranked as one of the leading SBA lenders in the state of Georgia for
 several years.  It currently operates four branches in the metropolitan
 Atlanta area and one branch in San Jose, California.
     This release contains certain forward-looking statements including
 statements relating to present or future trends or factors generally affecting
 the banking industry and specifically affecting Summit's operations,
 markets and products. Without limiting the foregoing, the words "believes,"
 "anticipates," "intends," "expects" or similar expressions are intended to
 identify forward-looking statements.  These forward-looking statements involve
 certain risks and uncertainties.  Actual results could differ materially from
 those projected for many reasons, including, without limitation, changing
 events and trends that have influenced Summit's assumptions, but that are
 beyond Summit's control. These trends and events include (i) changes
 in the interest rate environment which may reduce margins, (ii) not achieving
 expected growth, (iii) less favorable than anticipated changes in the national
 and local business environment and securities markets, (iv) adverse changes in
 the regulatory requirements affecting Summit, (v) greater competitive
 pressures among financial institutions in Summit's markets and (vi) greater
 loan losses than historic levels.  Additional information and other factors
 that could affect future financial results are included in Summit's
 filings with the Securities and Exchange Commission.
 
 
                            Summit Bank Corporation
                                     (SBGA)
 
 
                         Selected Financial Information
                                 March 31, 2001
 
     (In Thousands except per share data)
                                            March 31,                 %
                                     2001            2000           Change
 
     Total Assets                    328,576         277,595         18.4%
     Net Loans                       188,040         168,946         11.3%
     Investments                      89,064          69,405         28.3%
     Total Deposits                  280,021         227,357         23.2%
       Non-Interest Bearing           62,760          57,743          8.7%
       Interest Bearing              217,261         169,614         28.1%
     Stockholders' Equity             26,776          22,985         16.5%
 
 
     Loans as % Deposits              67.15%          74.31%
     Allowance for Loan Losses as
      % Total Loans                    1.59%           1.72%
     Nonperforming Assets as
      % Total Loans                    0.91%           0.67%
     Return on Average Assets          1.02%           1.27%
     Return on Average Equity         12.20%          15.50%
 
 
                                         Three Months Ended
                                            March 31,                 %
                                     2001             2000         Change
 
     Interest Income                   6,242           5,575         12.0%
     Interest Expense                  2,900           2,133         36.0%
     Net Interest Income               3,342           3,442         -2.9%
     Provision for Loan Losses           200             425        -52.9%
     Non-Interest Income               1,061           1,046          1.4%
     Non-Interest Expenses             2,983           2,718          9.7%
     Income Before Taxes               1,220           1,345         -9.3%
     Tax Expense                         422             468         -9.8%
     Net Income                          798             877         -9.0%
 
 
     Basic Earnings Per Share           0.40            0.44         -9.1%
     Diluted Earnings Per Share         0.40            0.44         -9.1%
     Dividend Per Share                 0.18            0.18          0.0%
 
 
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 SOURCE  Summit Bank Corporation