Summit Community Bank Strong Amid Industry Challenges


August 11, 2008


East Lansing, MI - Bucking the bad news trends being reported by a number of the large financial institutions, Summit Community Bank has never been busier.

“Consumers are coming back to community banking because they know and trust us,” says President & CEO John Abbott. “We are well capitalized and continuing to show strong growth while maintaining a high credit quality loan portfolio.”

Bad credit, along with lower margins, is cited as the primary reason that many financial institutions across the country continue to report losses, reduced earnings and dividend cuts midway through 2008.

Summit Community Bank’s loan portfolio continues to be very strong as a result of disciplined loan underwriting. Summit’s non-current loans to total loans ratio is 0.67% ratio. In comparison, the ratio for all banks in Michigan is 2.82%. In addition, while the state’s average loan loss reserve to non-current loans was 50.5%, at Summit’s loan loss reserve was 141%, showing that Summit’s protection against bad loans is very strong.

The bank has also rebalanced its total loan portfolio with residential real estate loans making up 51%, down from 61% compared to this time last year. 

“While residential real estate lending will continue to be an important part of our business plan, we expect the concentration of residential loans to decline as we increase commercial lending efforts to boost our interest margin and reduce our interest rate risk,” says Abbott.

Although, Summit’s earnings are down in the first half of 2008, it was due, not to credit issues, but mostly because of the costs of growth related to opening a new branch in Okemos in September 2007.

As of June 30, 2008, Summit reports:

·         Total assets of $166,753,000

          (June 30, 2007 assets were $140,272,000). 

·         Total loan increases of 18% totaling $151,123,000. 

          (June 30, 2007 total loans were $127,574,000).

·         Deposits increases of 18% totaling $102.3 million 

          (June 30, 2007 deposits were $86.4 million).  

Summit Community Bank is a full service financial institution with offices in East Lansing and Okemos, MI.  The Bank was formed over five years ago by local business leaders with an emphasis on the customer and the community.


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