Summit State Bank Declares Quarterly Cash Dividend

Rhea-AI Summary

Summit State Bank (Nasdaq: SSBI) has declared its 83rd consecutive quarterly cash dividend, but with a significant reduction. The Board of Directors announced a dividend of $0.04 per share, payable on October 10, 2024, to shareholders of record as of October 3, 2024. This decision was made in response to the current rate environment and its impact on earnings.

President and CEO Brian Reed explained that the dividend reduction is part of a deliberate strategy to build capital, improve capital ratios, and increase liquidity. The bank aims to position itself better for long-term value creation amid economic uncertainty. Reed acknowledged the impact on shareholders, emphasizing that the decision was not taken lightly.

Positive

• Continuation of dividend payments, maintaining 83 consecutive quarters
• Strategic move to build capital and improve financial stability
• Aim to increase liquidity and strengthen capital ratios
• Proactive approach to address economic uncertainty

Negative

• Significant reduction in quarterly dividend amount
• Potential negative impact on shareholder income
• Indication of earnings pressure due to current rate environment
• Possible investor concern over the bank's financial performance

News Market Reaction

+3.97%

1 alert

+3.97% News Effect

On the day this news was published, SSBI gained 3.97%, reflecting a moderate positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

SANTA ROSA, Calif., Sept. 12, 2024 (GLOBE NEWSWIRE) -- Summit State Bank’s (the “Bank”) (Nasdaq: SSBI) Board of Directors declared the Bank’s eighty third consecutive quarterly cash dividend to common shareholders for $0.04 per share on September 11, 2024. The dividend will be paid on October 10, 2024, to shareholders of record on October 3, 2024.

“The current rate environment, and its impact on earnings, led to our decision to reduce the quarterly cash dividend. The dividend reduction reflects the Bank’s deliberate approach to build capital,” said Brian Reed, President and CEO. “We recognize the importance and impact of the dividend reduction on all of our shareholders, and it was not made lightly. This reduction will improve capital ratios, increase liquidity and allow the Bank to be better positioned to create long-term value during this time of economic uncertainty.”

About Summit State Bank

Summit State Bank, a local community bank, has total assets of $1.1 billion and total equity of $98 million at June 30, 2024. Headquartered in Sonoma County, the Bank specializes in providing exceptional customer service and customized financial solutions to aid in the success of local small businesses and nonprofits throughout Sonoma County.

Summit State Bank is committed to embracing the diverse backgrounds, cultures and talents of its employees to create high performance and support the evolving needs of its customers and community it serves. At the center of diversity is inclusion, collaboration, and a shared vision for delivering superior service to customers and results for shareholders. Presently, 54% of management are women and minorities with 60% represented on the Executive Management Team. Through the engagement of its team, Summit State Bank has received many esteemed awards including: Top Performing Community Bank by American Banker, Best Places to Work in the North Bay by North Bay Business Journal, Corporate Philanthropy Award by the San Francisco Business Times, Hall of Fame by North Bay Biz Magazine, and Diversity in Business. Summit State Bank’s stock is traded on the Nasdaq Global Market under the symbol SSBI. Further information can be found at www.summitstatebank.com.

Contact: Brian Reed, President and CEO, Summit State Bank (707) 568-4908

FAQ

What is the new quarterly dividend amount for Summit State Bank (SSBI)?

Summit State Bank (SSBI) has declared a quarterly cash dividend of $0.04 per share.

When will Summit State Bank (SSBI) pay its latest quarterly dividend?

The dividend will be paid on October 10, 2024, to shareholders of record on October 3, 2024.

Why did Summit State Bank (SSBI) reduce its quarterly dividend?

The dividend was reduced to build capital, improve capital ratios, increase liquidity, and better position the bank for long-term value creation during economic uncertainty.

How many consecutive quarters has Summit State Bank (SSBI) paid dividends?

Summit State Bank (SSBI) has declared its 83rd consecutive quarterly cash dividend.