EUGENE, Ore. - Despite the challenging economic environment, Summit Bank completed another strong quarter with solid growth in both assets and earnings. Year over year, total assets increased by 13 percent to $111 million and net loans increased 12 percent to

$90 million. The Bank also achieved robust deposit growth over the same period with total deposits increasing by 14 percent to $92 million.

“The current state of the real estate markets and the near term economic outlook continue to present challenges for all banks,” said Ann Marie Mehlum, president and CEO, The bank added $120,000 to its allowance for loan losses and wrote down the carrying value of foreclosed real estate by $227,000 during the first half of the year. Summit’s percentage of past due loans and foreclosed real estate was 0.8 percent of total assets at June 30, the lowest level for the bank since the third quarter of 2008.

Summit’s earnings continue to improve despite the loan loss provision and asset write-downs. Net income for the second quarter was $127,000 with a year-to-date total of $226,000, exceeding earnings for the corresponding periods in 2008 by 40 percent and 22 percent. Pre-tax net income before asset charge-offs and provision for loan losses increased to $695,000 for the first half of 2009 compared to $397,000 in the first half of 2008.