Summit State Bank Earns $1,674,000, or $0.25 Per Diluted Share, in First Quarter 2026
Rhea-AI Summary
Summit State Bank (Nasdaq: SSBI) reported Q1 2026 net income of $1,674,000 or $0.25 per diluted share, down from $2,494,000 ($0.37) a year earlier. Pre-tax, pre-provision income rose to $3.32M. Key ratios: NIM 3.77%, Tier 1 leverage 10.67%, allowance to loans 1.96%, non-performing assets $35.17M. Net loans declined 12% and deposits decreased 8% year-over-year.
Positive
- Pre-tax, pre-provision income rose to $3.32M (Q1 2026)
- Net interest margin expanded to 3.77% (up 58 bps YoY)
- Tier 1 leverage ratio improved to 10.67%
- Book value increased to $15.16 per share
Negative
- Net income declined 33% YoY to $1.674M
- Net loans decreased 12% YoY to $776.1M
- Total deposits declined 8% YoY to $879.3M
- Non-performing assets rose to $35.17M (3.53% of assets)
- Allowance for credit losses increased to 1.96% of loans
News Market Reaction – SSBI
In the Apr 28 session, SSBI declined 0.15%, reflecting a mild negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Historical Context
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Jan 27 | Quarterly earnings | Positive | +1.2% | Return to full-year profitability with higher NIM, strong liquidity, and capital ratios. |
| Oct 29 | Quarterly earnings | Negative | -7.8% | Higher earnings but dividend suspension and still-elevated credit metrics weighed on tone. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Recent quarterly earnings headlines have generally seen price moves that aligned with the overall tone of results and capital/credit updates.
Over the last few quarters, Summit State Bank has emphasized earnings stabilization, margin expansion, and balance sheet risk reduction. In Q3 2025, earnings improved but a dividend suspension coincided with a negative share reaction. By Q4 2025, the bank reported a profitable full year 2025, stronger liquidity of $459.2M, higher net interest margin, and rising capital ratios, which was followed by a modestly positive price response. Today’s Q1 2026 update continues themes of margin improvement, elevated non-performing assets, and deliberate balance sheet downsizing.
Key Terms
tier 1 leverage ratio regulatory
non-performing assets financial
allowance for credit losses financial
other real estate owned financial
non-accrual loans financial
cecl financial
basis points financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
SANTA ROSA, Calif., April 28, 2026 (GLOBE NEWSWIRE) -- Summit State Bank (the “Bank”) (Nasdaq: SSBI) today reported net income of
“Our first quarter results reflect our team's continued commitment to executing on our strategic priorities,” said Brian Reed, President and CEO. “While first quarter net income came in below the prior year, pre-tax, pre-provision income1 improved meaningfully, driven by expansion in our net interest margin, disciplined expense management and stronger non-interest income. At our core, we are a community bank that exists to serve local businesses and families, and that mission continues to guide every decision we make. With margins improving and continued focus on credit quality, we are well positioned. We are proud of the progress our team has made and confident in our ability to build on it as we move forward.”
First quarter 2026 Financial Highlights (at or for the three months ended March 31, 2026)
- Net income was
$1,674,000 , or$0.25 per diluted share, compared to$2,494,000 , or$0.37 per diluted share, for the quarter ended March 31, 2025 and net income of$1,067,000 , or$0.16 per diluted share for the quarter ended December 31, 2025. - Pre-tax, pre-provision income1 was
$3,320,000 for the quarter ended March 31, 2026, compared to$2,471,000 for the quarter ended March 31, 2025 and$1,827,000 for the quarter ended December 31, 2025. - Net interest margin was
3.77% in the first quarter of 2026 compared to3.19% in the first quarter of 2025 and3.62% in the fourth quarter of 2025. - Non-performing assets were
$35,170,000 at March 31, 2026 compared to$21,884,000 at March 31, 2025 and$34,133,000 at December 31, 2025. - The Bank’s Tier 1 Leverage ratio increased to
10.67% at March 31, 2026 compared to9.45% at March 31, 2025. - Annualized return on average assets and annualized return on average equity for the first quarter of 2026 were
0.68% and6.56% , respectively. This compared to annualized return on average assets and annualized return on average equity for the first quarter of 2025 of0.95% and10.80% , respectively. - The allowance for credit losses to total loans was
1.96% at March 31, 2026 compared to1.53% at March 31, 2025 and1.71% at December 31, 2025. - The Bank maintained total liquidity of
$477,313,000 , or47.9% of total assets as of March 31, 2026. This includes on balance sheet liquidity (cash and equivalents and unpledged available-for-sale securities) of$179,177,000 or18.0% of total assets, plus available borrowing capacity of$298,136,000 or29.9% of total assets. - The Bank has been strategically managing its loan and deposit portfolios to reduce balance sheet risk and improve capital ratios, successfully reducing the overall size of its balance sheet as detailed below:
- Net loans decreased
12% to$776,109,000 at March 31, 2026, compared to$877,354,000 at March 31, 2025 and decreased7% compared to$831,793,000 at December 31, 2025. - Total deposits decreased
8% to$879,259,000 at March 31, 2026, compared to$957,065,000 at March 31, 2025, and decreased1% when compared to$891,111,000 at December 31, 2025.
- Net loans decreased
- Book value was
$15.16 per share at March 31, 2026, compared to$14.07 at March 31, 2025 and$14.94 at December 31, 2025.
Operating Results
For the first quarter of 2026, the annualized return on average assets was
“Our net interest margin expanded 58 basis points during the first quarter, compared to the year ago quarter, driven by meaningful progress on two fronts – a more efficient liability structure and the continued repricing of our loan portfolio. Together, these dynamics are translating into stronger earnings capacity and we remain focused on sustaining that trajectory,” said Reed. The Bank’s net interest margin was
Interest and dividend income decreased
Interest expense decreased
Noninterest income increased in the first quarter of 2026 to
Operating expenses increased in the first quarter of 2026 to
“Our commitment to operational efficiency is a strategic priority that runs throughout every corner of the Bank, not by compromising the quality of service our customers have come to expect, but by finding smarter, more disciplined ways to deliver it,” said Reed.
Balance Sheet Review
During the first quarter of 2026, the Bank continued to strategically manage its loan and deposit portfolios to reduce balance sheet risk and improve liquidity and capital ratios. As a result, net loans decreased
Net loans were
Total deposits were
Shareholders’ equity was
The Bank’s Tier 1 Leverage ratio continues to exceed the minimum of
Credit Quality
Non-performing assets were
“While we have made meaningful progress in credit quality over the past year through the resolution of certain problem credits and improved performance across the broader portfolio, non-performing loans increased modestly during the quarter, which we are monitoring closely,” said Reed. “Just under
There were no net charge-offs during the three months ended March 31, 2026, compared to no net charge-offs during the three months ended December 31, 2025 and
For the first quarter of 2026, the Bank recorded a provision for credit loss on loans of
The allowance for credit losses to total loans increased to
About Summit State Bank
Founded in 1982 and headquartered in Sonoma County, Summit State Bank is an award-winning community bank serving the North Bay. The Bank serves small businesses, nonprofits, and the community, with total assets of
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. 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 and Diversity in Business by North Bay Business Journal, Corporate Philanthropy Award by the San Francisco Business Times, and Hall of Fame by North Bay Biz Magazine. 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.
Cautionary Note Regarding Preliminary Financial Results and Forward-looking Statements
The financial results in this release are preliminary and unaudited. Final audited financial results and other disclosures will be reported in Summit State Bank’s quarterly report on Form 10-Q for the period ended March 31, 2026, and may differ materially from the results and disclosures in this release due to, among other things, the completion of final review procedures, the occurrence of subsequent events or the discovery of additional information.
Except for historical information, the statements contained in this release are forward-looking statements within the meaning of the “safe harbor” provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are non-historical statements regarding management’s expectations and beliefs about the Bank’s future financial performance and financial condition and trends in its business and markets. Words such as “expects,” “anticipates,” “believes,” “estimates” and similar expressions or future or conditional verbs such as “will,” “should,” “would” and “could” are intended to identify such forward-looking statements. Examples of forward-looking statements include but are not limited to statements regarding future operating results, operating improvements, loans sales and resolutions, cost savings, insurance recoveries, and dividends. The forward-looking statements in this release are based on current information and on assumptions about future events and circumstances that are subject to a number of risks and uncertainties that are often difficult to predict and beyond the Bank’s control. As a result of those risks and uncertainties, the Bank’s actual future results and outcomes could differ, possibly materially, from those expressed in or implied by the forward-looking statements contained in this release. Those risks and uncertainties include, but are not limited to, the risk of incurring credit losses; the quality and quantity of deposits; the market for deposits, adverse developments in the financial services industry and any related impact on depositor behavior or investor sentiment; risks related to the sufficiency of the Bank’s liquidity; fluctuations in interest rates; governmental regulation and supervision; the risk that the Bank will not maintain growth at historic rates or at all; general economic conditions, either nationally or locally in the areas in which the Bank conducts its business; the impacts of conflict in the Middle East on the national and local economy; risks associated with changes in interest rates, which could adversely affect future operating results; the risk that some or all of the loans under contract for sale may not be sold as or when expected; the risk that customers or counterparties may not perform in accordance with the terms of credit documents or other agreements due to a decline in credit worthiness, business conditions or other reasons; adverse conditions in real estate markets; and the inherent uncertainty of expectations regarding litigation, insurance claims and the performance or resolution of loans. Additional information regarding these and other risks and uncertainties to which the Bank’s business and future financial performance are subject is contained in the Bank’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025 and other documents the Bank files with the FDIC from time to time. Readers should not place undue reliance on the forward-looking statements, which reflect management’s views only as of the date of this release. The Bank undertakes no obligation to publicly revise these forward-looking statements to reflect subsequent events or circumstances.
1 Non-GAAP Financial Measures
This release contains a non-GAAP (Generally Accepted Accounting Principles) financial measure in addition to the results presented in accordance with GAAP. The Non-GAAP financial measure is pre-tax, pre-provision income. We believe the presentation of this non-GAAP financial measure provides useful information to assess our consolidated financial condition and consolidated results of operations and to assist investors in evaluating our financial results relative to our historical results and those of our peers.
Not all companies use identical calculations or the same definitions of pre-tax, pre-provision income, so the presentation of this non-GAAP financial measure may not be comparable to other similarly titled measures used by other companies. This non-GAAP financial measure has inherent limitations, is not required to be uniformly applied, and is not audited. This non-GAAP financial measure should be taken together with the corresponding GAAP measure and should not be considered a substitute for the GAAP measure. A reconciliation of the most directly comparable GAAP measure to this non-GAAP financial measure is presented below.
Contact: Brian Reed, President and CEO, Summit State Bank (707) 568-4908
| Three Months Ended | |||||||||||
| March 31, 2026 | December 31, 2025 | March 31, 2025 | |||||||||
| (In thousands) | |||||||||||
| Reconciliation of non-GAAP pre-tax, pre-provision income | |||||||||||
| Net income | $ | 1,674 | $ | 1,067 | $ | 2,494 | |||||
| Excluding provision for (reversal of) credit losses | 1,047 | 476 | (628 | ) | |||||||
| Excluding provision for income tax expense | 599 | 284 | 605 | ||||||||
| Pre-tax, pre-provision income (non-GAAP) | $ | 3,320 | $ | 1,827 | $ | 2,471 | |||||
| SUMMIT STATE BANK | |||||||||||||||
| STATEMENTS OF INCOME | |||||||||||||||
| (In thousands except earnings per share data) | |||||||||||||||
| Three Months Ended | |||||||||||||||
| March 31, 2026 | December 31, 2025 | March 31, 2025 | |||||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | |||||||||||||
| Interest and dividend income: | |||||||||||||||
| Interest and fees on loans | $ | 12,380 | $ | 13,301 | $ | 13,420 | |||||||||
| Interest on deposits with banks | 898 | 526 | 477 | ||||||||||||
| Interest on investment securities | 468 | 482 | 515 | ||||||||||||
| Dividends on FHLB stock | 298 | 127 | 130 | ||||||||||||
| Total interest and dividend income | 14,044 | 14,436 | 14,542 | ||||||||||||
| Interest expense: | |||||||||||||||
| Deposits | 4,871 | 5,198 | 6,288 | ||||||||||||
| Federal Home Loan Bank advances | 5 | 139 | 40 | ||||||||||||
| Junior subordinated debt | 122 | 127 | 136 | ||||||||||||
| Total interest expense | 4,998 | 5,464 | 6,464 | ||||||||||||
| Net interest income before provision for (reversal of) credit losses | 9,046 | 8,972 | 8,078 | ||||||||||||
| Provision for (reversal of) credit losses on loans | 1,057 | 445 | (577 | ) | |||||||||||
| (Reversal of) provision for credit losses on unfunded loan commitments | (9 | ) | 30 | (38 | ) | ||||||||||
| (Reversal of) provision for credit losses on investments | (1 | ) | 1 | (13 | ) | ||||||||||
| Net interest income after provision for (reversal of) credit | |||||||||||||||
| losses on loans, unfunded loan commitments and investments | 7,999 | 8,496 | 8,706 | ||||||||||||
| Non-interest income: | |||||||||||||||
| Service charges on deposit accounts | 255 | 219 | 225 | ||||||||||||
| Rental income | 54 | 57 | 57 | ||||||||||||
| Net gain on loan sales | 497 | 436 | 22 | ||||||||||||
| Net loss on securities | - | (2 | ) | - | |||||||||||
| Loss on valuation of other real estate owned | - | (2,143 | ) | - | |||||||||||
| Other income | 206 | 31 | 342 | ||||||||||||
| Total non-interest income (loss) | 1,012 | (1,402 | ) | 646 | |||||||||||
| Non-interest expense: | |||||||||||||||
| Salaries and employee benefits | 4,242 | 3,463 | 3,727 | ||||||||||||
| Occupancy and equipment | 356 | 370 | 421 | ||||||||||||
| Other expenses | 2,140 | 1,910 | 2,105 | ||||||||||||
| Total non-interest expense | 6,738 | 5,743 | 6,253 | ||||||||||||
| Income before provision for income taxes | 2,273 | 1,351 | 3,099 | ||||||||||||
| Provision for income tax expense | 599 | 284 | 605 | ||||||||||||
| Net income | $ | 1,674 | $ | 1,067 | $ | 2,494 | |||||||||
| Basic earnings per common share | $ | 0.25 | $ | 0.16 | $ | 0.37 | |||||||||
| Diluted earnings per common share | $ | 0.25 | $ | 0.16 | $ | 0.37 | |||||||||
| Basic weighted average shares of common stock outstanding | 6,734,158 | 6,734,158 | 6,719,127 | ||||||||||||
| Diluted weighted average shares of common stock outstanding | 6,734,158 | 6,734,158 | 6,719,127 | ||||||||||||
| SUMMIT STATE BANK | ||||||||||||||
| BALANCE SHEETS | ||||||||||||||
| (In thousands except share data) | ||||||||||||||
| March 31, 2026 | December 31, 2025 | March 31, 2025 | ||||||||||||
| (Unaudited) | (Audited) | (Unaudited) | ||||||||||||
| ASSETS | ||||||||||||||
| Cash and due from banks | $ | 115,456 | $ | 65,524 | $ | 72,408 | ||||||||
| Total cash and cash equivalents | 115,456 | 65,524 | 72,408 | |||||||||||
| Investment securities: | ||||||||||||||
| Available-for-sale, less allowance for credit losses of | ||||||||||||||
| (at fair value; amortized cost of | 63,721 | 66,375 | 68,737 | |||||||||||
| Loans held for investment, less allowance for | ||||||||||||||
| credit losses of | 776,109 | 831,793 | 877,354 | |||||||||||
| Bank premises and equipment, net | 4,734 | 4,822 | 5,057 | |||||||||||
| Investment in Federal Home Loan Bank stock (FHLB), at cost | 5,889 | 5,889 | 5,889 | |||||||||||
| Other Real Estate Owned | 2,294 | 2,294 | 4,437 | |||||||||||
| Affordable housing tax credit investments | 6,268 | 6,479 | 7,202 | |||||||||||
| Accrued interest receivable and other assets | 21,451 | 21,410 | 22,278 | |||||||||||
| Total assets | $ | 995,922 | $ | 1,004,586 | $ | 1,063,362 | ||||||||
| LIABILITIES AND | ||||||||||||||
| SHAREHOLDERS' EQUITY | ||||||||||||||
| Deposits: | ||||||||||||||
| Demand - non interest-bearing | $ | 190,769 | $ | 182,723 | $ | 198,736 | ||||||||
| Demand - interest-bearing | 215,660 | 217,158 | 192,764 | |||||||||||
| Savings | 39,571 | 46,213 | 39,000 | |||||||||||
| Money market | 198,515 | 203,897 | 212,900 | |||||||||||
| Time deposits that meet or exceed the FDIC insurance limit | 68,741 | 70,728 | 93,154 | |||||||||||
| Other time deposits | 166,003 | 170,392 | 220,511 | |||||||||||
| Total deposits | 879,259 | 891,111 | 957,065 | |||||||||||
| Junior subordinated debt | 5,953 | 5,949 | 5,938 | |||||||||||
| Affordable housing commitment | 458 | 458 | 511 | |||||||||||
| Accrued interest payable and other liabilities | 7,591 | 5,897 | 4,508 | |||||||||||
| Total liabilities | 893,261 | 903,415 | 968,022 | |||||||||||
| Shareholders' equity | ||||||||||||||
| Preferred stock, no par value; 20,000,000 shares authorized; | ||||||||||||||
| no shares issued and outstanding | - | - | - | |||||||||||
| Common stock, no par value; shares authorized - 30,000,000 shares; | ||||||||||||||
| issued and outstanding 6,771,526, 6,771,526 and 6,776,563 | 38,011 | 37,954 | 37,803 | |||||||||||
| Retained earnings | 71,342 | 69,668 | 65,363 | |||||||||||
| Accumulated other comprehensive loss, net | (6,692 | ) | (6,451 | ) | (7,826 | ) | ||||||||
| Total shareholders' equity | 102,661 | 101,171 | 95,340 | |||||||||||
| Total liabilities and shareholders' equity | $ | 995,922 | $ | 1,004,586 | $ | 1,063,362 | ||||||||
| Financial Summary | ||||||||||||
| (Dollars in thousands except per share data) | ||||||||||||
| As of and for the | ||||||||||||
| Three Months Ended | ||||||||||||
| March 31, 2026 | December 31, 2025 | March 31, 2025 | ||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | ||||||||||
| Statement of Income Data: | ||||||||||||
| Net interest income | $ | 9,046 | $ | 8,972 | $ | 8,078 | ||||||
| Provision for (reversal of) credit losses on loans | 1,057 | 445 | (577 | ) | ||||||||
| (Reversal of) provision for credit losses on unfunded loan commitments | (9 | ) | 30 | (38 | ) | |||||||
| (Reversal of) provision for credit losses on investments | (1 | ) | 1 | (13 | ) | |||||||
| Non-interest income | 1,012 | (1,402 | ) | 646 | ||||||||
| Non-interest expense | 6,738 | 5,743 | 6,253 | |||||||||
| Provision for income tax expense | 599 | 284 | 605 | |||||||||
| Net income | $ | 1,674 | $ | 1,067 | $ | 2,494 | ||||||
| Selected per Common Share Data: | ||||||||||||
| Basic earnings per common share | $ | 0.25 | $ | 0.16 | $ | 0.37 | ||||||
| Diluted earnings per common share | $ | 0.25 | $ | 0.16 | $ | 0.37 | ||||||
| Dividend per share | $ | - | $ | - | $ | - | ||||||
| Book value per common share (1) | $ | 15.16 | $ | 14.94 | $ | 14.07 | ||||||
| Selected Balance Sheet Data: | ||||||||||||
| Assets | $ | 995,922 | $ | 1,004,586 | $ | 1,063,362 | ||||||
| Loans held for investment, net | 776,109 | 831,793 | 877,354 | |||||||||
| Deposits | 879,259 | 891,111 | 957,065 | |||||||||
| Average assets | 1,002,042 | 1,014,372 | 1,059,902 | |||||||||
| Average earning assets | 973,787 | 982,188 | 1,028,563 | |||||||||
| Average shareholders' equity | 103,569 | 101,813 | 93,620 | |||||||||
| Nonperforming loans | 32,876 | 31,839 | 17,447 | |||||||||
| Net loans recovered | - | - | 509 | |||||||||
| Other real estate owned | 2,294 | 2,294 | 4,437 | |||||||||
| Total nonperforming assets | 35,170 | 34,133 | 21,884 | |||||||||
| Selected Ratios: | ||||||||||||
| Return on average assets (2) | 0.68 | % | 0.42 | % | 0.95 | % | ||||||
| Return on average common shareholders' equity (2) | 6.56 | % | 4.16 | % | 10.80 | % | ||||||
| Efficiency ratio (3) | 66.99 | % | 75.85 | % | 71.68 | % | ||||||
| Net interest margin (2) | 3.77 | % | 3.62 | % | 3.19 | % | ||||||
| Common equity tier 1 capital ratio | 12.36 | % | 12.03 | % | 10.67 | % | ||||||
| Tier 1 capital ratio | 12.36 | % | 12.03 | % | 10.67 | % | ||||||
| Total capital ratio | 14.02 | % | 13.69 | % | 12.43 | % | ||||||
| Tier 1 leverage ratio | 10.67 | % | 10.37 | % | 9.45 | % | ||||||
| Common dividend payout ratio (4) | 0.00 | % | 0.00 | % | 0.00 | % | ||||||
| Average shareholders' equity to average assets | 10.34 | % | 10.04 | % | 8.83 | % | ||||||
| Nonperforming loans to total loans held for investment | 4.15 | % | 3.76 | % | 1.96 | % | ||||||
| Nonperforming assets to total assets | 3.53 | % | 3.40 | % | 2.06 | % | ||||||
| Allowance for credit losses to total loans held for investment | 1.96 | % | 1.71 | % | 1.53 | % | ||||||
| Allowance for credit losses to nonperforming loans | 47.28 | % | 45.50 | % | 78.09 | % | ||||||
| (1) Total shareholders' equity divided by total common shares outstanding. | ||||||||||||
| (2) Annualized. | ||||||||||||
| (3) Non-interest expenses to net interest and non-interest income, net of securities gains. | ||||||||||||
| (4) Common dividends divided by net income available for common shareholders. | ||||||||||||
