Summit State Bank Reports Fourth Quarter 2024 Financial Results
Summit State Bank (SSBI) reported a net loss of $6.61M ($0.98 loss per share) for Q4 2024, compared to net income of $1.90M ($0.28 per share) in Q4 2023. The loss was primarily due to a $6.65M provision for credit losses and a $4.12M one-time non-cash goodwill impairment charge.
For the full year 2024, the bank reported a net loss of $3.66M ($0.54 loss per share) versus net income of $10.82M ($1.62 per share) in 2023. The bank's net interest margin improved to 2.88% in Q4 2024 from 2.71% in Q2 and Q3 2024.
The bank has suspended cash dividends for Q1 2025 to build capital and increase liquidity. Non-performing assets decreased to $32.88M (3.08% of total assets) at year-end 2024, with anticipated further reduction of $18.19M in H1 2025 through collateral sales.
Summit State Bank (SSBI) ha riportato una perdita netta di $6,61 milioni ($0,98 di perdita per azione) per il quarto trimestre del 2024, rispetto a un reddito netto di $1,90 milioni ($0,28 per azione) nel quarto trimestre del 2023. La perdita è stata principalmente causata da un accantonamento per perdite su crediti di $6,65 milioni e da una svalutazione non monetaria del goodwill di $4,12 milioni.
Per l'intero anno 2024, la banca ha registrato una perdita netta di $3,66 milioni ($0,54 di perdita per azione) rispetto a un reddito netto di $10,82 milioni ($1,62 per azione) nel 2023. Il margine d'interesse netto della banca è migliorato al 2,88% nel quarto trimestre del 2024, rispetto al 2,71% nel secondo e terzo trimestre del 2024.
La banca ha sospeso i dividendi in contante per il primo trimestre del 2025 per aumentare il capitale e migliorare la liquidità. Gli attivi non performanti sono diminuiti a $32,88 milioni (3,08% del totale attivo) alla fine del 2024, con un ulteriore riduzione prevista di $18,19 milioni nel primo semestre del 2025 attraverso vendite di garanzie.
Summit State Bank (SSBI) informó una pérdida neta de $6.61 millones ($0.98 de pérdida por acción) para el cuarto trimestre de 2024, en comparación con una ganancia neta de $1.90 millones ($0.28 por acción) en el cuarto trimestre de 2023. La pérdida se debe principalmente a una asignación de $6.65 millones para pérdidas crediticias y un cargo único no monetario de deterioro del goodwill de $4.12 millones.
Para el año completo 2024, el banco reportó una pérdida neta de $3.66 millones ($0.54 de pérdida por acción) frente a una ganancia neta de $10.82 millones ($1.62 por acción) en 2023. El margen de interés neto del banco mejoró al 2.88% en el cuarto trimestre de 2024 desde el 2.71% en los trimestres segundo y tercero de 2024.
El banco ha suspendido los dividendos en efectivo para el primer trimestre de 2025 para aumentar el capital y mejorar la liquidez. Los activos no productivos disminuyeron a $32.88 millones (3.08% del total de activos) al cierre de 2024, con una reducción esperada adicional de $18.19 millones en la primera mitad de 2025 a través de ventas de colateral.
Summit State Bank (SSBI)는 2024년 4분기에 총 $6.61백만 달러($0.98의 주당 손실)의 순손실을 보고했으며, 이는 2023년 4분기에 $1.90백만 달러($0.28의 주당 수익)에 비해 감소한 것입니다. 손실의 주요 원인은 $6.65백만 달러의 신용 손실 충당금과 $4.12백만 달러의 일회성 비현금 감액 비용 때문입니다.
2024년 전체 연도에 대해 은행은 $3.66백만 달러($0.54의 주당 손실)의 순손실을 보고했으며, 이는 2023년의 $10.82백만 달러($1.62의 주당 수익)에 비해 감소한 수치입니다. 은행의 순이자 마진은 2024년 4분기 2.88%로 개선되었으며, 이는 2024년 2분기와 3분기 때의 2.71%에서 상승한 결과입니다.
은행은 2025년 1분기의 현금 배당금을 중단하여 자본을 늘리고 유동성을 증가시키기로 했습니다. 비수익 자산은 2024년 말 기준으로 $32.88백만 달러(총 자산의 3.08%)로 감소했으며, 추가적으로 2025년 상반기 동안 담보 매각을 통해 $18.19백만 달러가 더욱 줄어들 것으로 예상됩니다.
Summit State Bank (SSBI) a rapporté une perte nette de 6,61 millions de dollars (0,98 $ de perte par action) pour le quatrième trimestre de 2024, comparativement à un bénéfice net de 1,90 million de dollars (0,28 $ par action) au quatrième trimestre de 2023. La perte était principalement due à une provision de 6,65 millions de dollars pour pertes de crédit et à une charge de non-espèces unique de dépréciation du goodwill de 4,12 millions de dollars.
Pour l'année entière 2024, la banque a enregistré une perte nette de 3,66 millions de dollars (0,54 $ de perte par action) contre un bénéfice net de 10,82 millions de dollars (1,62 $ par action) en 2023. La marge d'intérêt nette de la banque s'est améliorée à 2,88 % au quatrième trimestre 2024, contre 2,71 % au deuxième et troisième trimestre 2024.
La banque a suspendu les dividendes en espèces pour le premier trimestre de 2025 afin d'accroître ses fonds propres et d'améliorer sa liquidité. Les actifs non performants ont diminué à 32,88 millions de dollars (3,08 % des actifs totaux) à la fin de 2024, avec une réduction supplémentaire prévue de 18,19 millions de dollars au premier semestre 2025 grâce à des ventes de garanties.
Summit State Bank (SSBI) berichtete für das vierte Quartal 2024 einen Nettverlust von $6,61 Millionen ($0,98 Verlust pro Aktie), verglichen mit einem Nettogewinn von $1,90 Millionen ($0,28 pro Aktie) im vierten Quartal 2023. Der Verlust war hauptsächlich auf einen Rückstellungsbetrag von $6,65 Millionen für Kreditausfälle und eine einmalige, nicht liquiditätswirksame Wertminderung auf den Geschäftswert von $4,12 Millionen zurückzuführen.
Für das gesamte Jahr 2024 wies die Bank einen Nettverlust von $3,66 Millionen ($0,54 Verlust pro Aktie) gegenüber einem Nettogewinn von $10,82 Millionen ($1,62 pro Aktie) im Jahr 2023 aus. Die Nettozinsmarge der Bank verbesserte sich im vierten Quartal 2024 auf 2,88%, gegenüber 2,71% im zweiten und dritten Quartal 2024.
Die Bank hat die Barausschüttungen für das erste Quartal 2025 ausgesetzt, um das Kapital zu erhöhen und die Liquidität zu steigern. Die notleidenden Vermögenswerte verringerten sich zum Jahresende 2024 auf $32,88 Millionen (3,08% der Gesamtvermögenswerte), mit einer erwarteten weiteren Reduzierung von $18,19 Millionen im ersten Halbjahr 2025 durch den Verkauf von Sicherheiten.
- Net interest margin improved to 2.88% in Q4 2024 from 2.71% in previous quarters
- Cost of deposits decreased to 2.87% in Q4 2024 from 3.05% in Q3 2024
- Tier 1 Leverage ratio increased to 8.92% from 8.85% year-over-year
- Non-performing loans reduced by $9.16M in Q4 2024
- Strong total liquidity of $435.41M (40.8% of total assets)
- Q4 2024 net loss of $6.61M compared to $1.90M profit in Q4 2023
- Full year 2024 net loss of $3.66M versus $10.82M profit in 2023
- Non-performing assets at 3.08% of total assets ($32.88M)
- $8.34M in net charge-offs during Q4 2024
- Book value decreased to $13.61 per share from $14.40 year-over-year
- Suspension of cash dividends for Q1 2025
Insights
The Q4 2024 results reveal significant challenges but also signs of operational improvements at Summit State Bank. The
Several positive indicators deserve attention:
- Net interest margin improved to
2.88% from2.71% in Q2/Q3, with declining deposit costs (2.87% vs3.05% previous quarter) - Pre-tax, pre-provision income showed sequential improvement to
$2.99M in Q4 - Tier 1 Leverage ratio strengthened to
8.92% , well above the5% regulatory minimum
The bank's strategic balance sheet management has yielded results, with total liquidity at
The
SANTA ROSA, Calif., Jan. 28, 2025 (GLOBE NEWSWIRE) -- Summit State Bank (the “Bank”) (Nasdaq: SSBI) today reported a net loss of
For the year ended December 31, 2024, the Bank reported a net loss of
Pre-tax, pre-provision net income before goodwill1 was
“The Bank continues to focus on maintaining strong capital levels and did that effectively in 2024 by strategically managing the balance sheet and suspending cash dividends.
As such, the Board determined it will also suspend cash dividends in the first quarter of 2025 so that we can build capital, increase liquidity, and position the Bank to create long-term value for our shareholders.”
“The largest negative impact on the Bank’s performance in 2024 was a result of the heightened level of non-performing assets,” said Reed. “We have been aggressively pursuing solutions to these problem loans and have reduced our non performing loans by
“We are headed into 2025 feeling positive about our prospects subsequent to our significant progress in resolving problem loans. We continue to maintain our well capitalized status and sufficient liquidity after having realized successive quarters of improved net operating income results,” concluded Reed.
Fourth Quarter 2024 Financial Highlights (at or for the three months ended December 31, 2024)
- The Bank’s Tier 1 Leverage ratio increased to
8.92% at December 31, 2024 compared to8.85% at December 31, 2023. This ratio remains above the minimum of5% required to be considered “well-capitalized” for regulatory capital purposes. - The Bank has implemented numerous operating cost saving initiatives including an
8% reduction in force. - The Bank’s annualized loss on average assets and annualized loss on average equity for the fourth quarter of 2024 was
2.39% and25.94% , respectively. The pre-tax, pre-provision return on average assets before goodwill1 and pre-tax, pre-provision return on average equity before goodwill1 in the fourth quarter would have been1.08% and11.76% , respectively. - Net income was a loss of
$6,605,000 for the fourth quarter of 2024. Pre-tax, pre-provision net income before goodwill1 was$2,994,000 for the fourth quarter of 2024 compared to$2,122,000 ,$1,267,000 ,$1,955,000 and$2,643,000 for the quarters ended September 30, 2024, June 30, 2024, March 31, 2024, and December 31, 2023, respectively. - Collateral relating to two of the non performing loans is in contract to sell in the first half of 2025 and the expected proceeds represent
65% or$18,010,000 of the remaining$27,754,000 of non performing loans. - The allowance for credit losses to total loans was
1.50% after charging off$8,343,000 and recording a$6,646,000 provision for credit losses to replenish reserves on December 31, 2024. - The Bank maintained strong total liquidity of
$435,409,000 , or40.8% of total assets as of December 31, 2024. This includes on balance sheet liquidity (cash and equivalents and unpledged available-for-sale securities) of$111,471,000 or10.4% of total assets, plus available borrowing capacity of$323,938,000 or30.3% of total assets. - The Bank has been strategically managing its loan and deposit portfolios to reduce risk in the balance sheet and improve capital ratios. The Bank has been successful in reducing the size of its balance sheet as noted below:
- Net loans decreased
$33,627,000 t o$904,999,000 at December 31, 2024, compared to$938,626,000 one year earlier and decreased$12,368,000 compared to$917,367,000 t hree months earlier. - Total deposits decreased
5% to$962,562,000 at December 31, 2024, compared to$1,009,693,000 at December 31, 2023, and decreased4% when compared to the prior quarter end of$1,002,770,000.
- Net loans decreased
- Book value was
$13.61 per share, compared to$14.40 per share a year ago and$14.85 in the preceding quarter.
Operating Results
For the fourth quarter of 2024, the annualized loss on average assets was
For the year ended 2024, the loss on average assets was
The Bank’s net interest margin was
Interest and dividend income decreased
Noninterest income increased in the fourth quarter of 2024 to
Operating expenses increased in the fourth quarter of 2024 to
“We remain focused on enhancing revenue generation and driving significant cost efficiencies to improving our operational effectiveness. To date we have leveraged existing staff and technologies to reduce third-party expenses, eliminated raises and bonuses, reduced employee benefits Bank-wide, and reduced director fees.”
Balance Sheet Review
During 2024, the Bank strategically managed its loan and deposit portfolios to reduce risk in the balance sheet and improve capital ratios. As a result of the efforts, 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
“Our primary focus remains on managing asset quality and reducing portfolio risk,” said Reed. “To that end we charged off loans of
Non performing assets were
There were
For the fourth quarter of 2024, consistent with factors within the allowance for credit losses model, the Bank recorded a
The allowance for credit losses to total loans was
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 annual report on Form 10-K for the period ended December 31, 2024 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; risks associated with changes in interest rates, which could adversely affect future operating results; the risk that customers or counterparties may not performance in accordance with the terms of credit documents or other agreements due 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, 2023 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 non-GAAP (Generally Accepted Accounting Principles) financial measures in addition to the results presented in accordance with GAAP. These Non-GAAP financial measures include pre-tax, pre-provision net operating income before goodwill, pre-tax, pre-provision return on average assets before goodwill (“ROAA”), and pre-tax, pre-provision return on average equity (“ROAE”) before goodwill. We believe the presentation of these non-GAAP financial measures, 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 history results and those of our peers.
Not all companies use identical calculations or the same definitions of pre-tax, pre-provision net operating income before goodwill, pre-tax, pre-provision ROAA before goodwill and pre-tax, pre-provision ROAE before goodwill, so the presentation of these non-GAAP financial measures may not be comparable to other similarly titled measures used by other companies. These non-GAAP financial measures have inherent limitations, are not required to be uniformly applied, and are not audited. These non-GAAP financial measures should be taken together with the corresponding GAAP measure and should not be considered a substitute for the GAAP measure. Reconciliations of the most directly comparable GAAP measures to these non-GAAP financial measurements are presented below.
Contact: Brian Reed, President and CEO, Summit State Bank (707) 568-4908
| Three Months Ended | ||||||||||||||||||||||
| December 31, 2024 | September 30, 2024 | June 30, 2024 | March 31, 2024 | December 31, 2023 | ||||||||||||||||||
| (In thousands) | ||||||||||||||||||||||
| Reconciliation of non-GAAP pre-tax, pre-provision income net of goodwill | ||||||||||||||||||||||
| Net (loss) income | $ | (6,605 | ) | $ | 626 | $ | 928 | $ | 1,395 | $ | 1,901 | |||||||||||
| Excluding provision for (reversal of) credit losses | 6,652 | 1,294 | (16 | ) | (85 | ) | (65 | ) | ||||||||||||||
| Excluding (reversal of) provision for income taxes | (1,172 | ) | 202 | 355 | 645 | 807 | ||||||||||||||||
| Pre-tax, pre-provision income (non-GAAP) | $ | (1,125 | ) | $ | 2,122 | $ | 1,267 | $ | 1,955 | $ | 2,643 | |||||||||||
| Excluding goodwill impairment | 4,119 | - | - | - | - | |||||||||||||||||
| Pre-tax, pre-provision income net of goodwill (non-GAAP) | $ | 2,994 | $ | 2,122 | $ | 1,267 | $ | 1,955 | $ | 2,643 | ||||||||||||
| Three Months Ended | ||||||||||||||||||||||
| December 31, 2024 | September 30, 2024 | June 30, 2024 | March 31, 2024 | December 31, 2023 | ||||||||||||||||||
| (In thousands) | ||||||||||||||||||||||
| Reconciliation of non-GAAP return on average assets | ||||||||||||||||||||||
| Average assets | $ | 1,098,890 | $ | 1,098,469 | $ | 1,078,700 | $ | 1,087,960 | $ | 1,123,057 | ||||||||||||
| (Loss) return on average assets (1) | - | |||||||||||||||||||||
| Net (loss) income | $ | (6,605 | ) | $ | 626 | $ | 928 | $ | 1,395 | $ | 1,901 | |||||||||||
| Excluding provision for (reversal of) credit losses | 6,652 | 1,294 | (16 | ) | (85 | ) | (65 | ) | ||||||||||||||
| Excluding (reversal of) provision for income taxes | (1,172 | ) | 202 | 355 | 645 | 807 | ||||||||||||||||
| Pre-tax, pre-provision income (non-GAAP) | $ | (1,125 | ) | $ | 2,122 | $ | 1,267 | $ | 1,955 | $ | 2,643 | |||||||||||
| Excluding goodwill impairment | 4,119 | - | - | - | - | |||||||||||||||||
| Pre-tax, pre-provision income net of goodwill (non-GAAP) | $ | 2,994 | $ | 2,122 | $ | 1,267 | $ | 1,955 | $ | 2,643 | ||||||||||||
| Adjusted return on average assets (non-GAAP) (1) | 1.08% | 0.77% | 0.47% | 0.72% | 0.93% | |||||||||||||||||
| (1) Annualized. | ||||||||||||||||||||||
| Three Months Ended | ||||||||||||||||||||||
| December 31, 2024 | September 30, 2024 | June 30, 2024 | March 31, 2024 | December 31, 2023 | ||||||||||||||||||
| (In thousands) | ||||||||||||||||||||||
| Reconciliation of non-GAAP return on average shareholders' equity | ||||||||||||||||||||||
| Average shareholders' equity | $ | 101,313 | $ | 99,962 | $ | 97,548 | $ | 97,471 | $ | 94,096 | ||||||||||||
| (Loss) return on average shareholders' equity (1) | - | |||||||||||||||||||||
| Net (loss) income | $ | (6,605 | ) | $ | 626 | $ | 928 | $ | 1,395 | $ | 1,901 | |||||||||||
| Excluding provision for (reversal of) credit losses | 6,652 | 1,294 | (16 | ) | (85 | ) | (65 | ) | ||||||||||||||
| Excluding (reversal of) provision for income taxes | (1,172 | ) | 202 | 355 | 645 | 807 | ||||||||||||||||
| Pre-tax, pre-provision income (non-GAAP) | $ | (1,125 | ) | $ | 2,122 | $ | 1,267 | $ | 1,955 | $ | 2,643 | |||||||||||
| Excluding goodwill impairment | 4,119 | - | - | - | - | |||||||||||||||||
| Pre-tax, pre-provision income net of goodwill (non-GAAP) | $ | 2,994 | $ | 2,122 | $ | 1,267 | $ | 1,955 | $ | 2,643 | ||||||||||||
| Adjusted return on average shareholders' equity (non-GAAP) (1) | 11.76% | 8.42% | 5.21% | 8.04% | 11.14% | |||||||||||||||||
| (1) Annualized. | ||||||||||||||||||||||
| SUMMIT STATE BANK | |||||||||||||||
| STATEMENTS OF INCOME | |||||||||||||||
| (In thousands except earnings per share data) | |||||||||||||||
| Three Months Ended | Year Ended | ||||||||||||||
| December 31, 2024 | December 31, 2023 | December 31, 2024 | December 31, 2023 | ||||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | ||||||||||||
| Interest and dividend income: | |||||||||||||||
| Interest and fees on loans | $ | 13,623 | $ | 13,409 | $ | 53,574 | $ | 52,560 | |||||||
| Interest on deposits with banks | 655 | 792 | 2,060 | 4,410 | |||||||||||
| Interest on investment securities | 530 | 712 | 2,614 | 2,855 | |||||||||||
| Dividends on FHLB stock | 127 | 123 | 514 | 416 | |||||||||||
| Total interest and dividend income | 14,935 | 15,036 | 58,762 | 60,241 | |||||||||||
| Interest expense: | |||||||||||||||
| Deposits | 7,099 | 7,113 | 28,495 | 24,227 | |||||||||||
| Federal Home Loan Bank advances | 6 | - | 337 | 177 | |||||||||||
| Junior subordinated debt | 128 | 94 | 454 | 375 | |||||||||||
| Total interest expense | 7,233 | 7,207 | 29,286 | 24,779 | |||||||||||
| Net interest income before provision for credit losses | 7,702 | 7,829 | 29,476 | 35,462 | |||||||||||
| Provision for (reversal of) credit losses on loans | 6,646 | (31 | ) | 7,958 | 342 | ||||||||||
| Provision for (reversal of) credit losses on unfunded loan commitments | 8 | (65 | ) | (91 | ) | (68 | ) | ||||||||
| (Reversal of) provision for credit losses on investments | (2 | ) | 31 | (22 | ) | 58 | |||||||||
| Net interest income after provision for (reversal of) credit | |||||||||||||||
| losses, unfunded loan commitments and investments | 1,050 | 7,894 | 21,631 | 35,130 | |||||||||||
| Non-interest income: | |||||||||||||||
| Service charges on deposit accounts | 225 | 219 | 926 | 872 | |||||||||||
| Rental income | 61 | 54 | 241 | 193 | |||||||||||
| Net gain on loan sales | 857 | - | 2,114 | 2,481 | |||||||||||
| Net gain on securities | 6 | - | 6 | - | |||||||||||
| FHLB prepayment fee | - | - | - | 1,024 | |||||||||||
| Other income | 224 | 24 | 865 | 631 | |||||||||||
| Total non-interest income | 1,373 | 297 | 4,152 | 5,201 | |||||||||||
| Non-interest expense: | |||||||||||||||
| Salaries and employee benefits | 3,429 | 3,044 | 15,639 | 15,399 | |||||||||||
| Occupancy and equipment | 413 | 386 | 1,761 | 1,713 | |||||||||||
| Goodwill impairment | 4,119 | - | 4,119 | - | |||||||||||
| Other expenses | 2,239 | 2,053 | 7,889 | 7,938 | |||||||||||
| Total non-interest expense | 10,200 | 5,483 | 29,408 | 25,050 | |||||||||||
| (Loss) income before provision for income taxes | (7,777 | ) | 2,708 | (3,625 | ) | 15,281 | |||||||||
| (Reversal of) provision for income taxes | (1,172 | ) | 807 | 31 | 4,459 | ||||||||||
| Net (loss) income | $ | (6,605 | ) | $ | 1,901 | $ | (3,656 | ) | $ | 10,822 | |||||
| Basic (loss) earnings per common share | $ | (0.98 | ) | $ | 0.28 | $ | (0.54 | ) | $ | 1.62 | |||||
| Diluted (loss) earnings per common share | $ | (0.98 | ) | $ | 0.28 | $ | (0.54 | ) | $ | 1.62 | |||||
| Basic weighted average shares of common stock outstanding | 6,719 | 6,698 | 6,714 | 6,695 | |||||||||||
| Diluted weighted average shares of common stock outstanding | 6,719 | 6,698 | 6,714 | 6,698 | |||||||||||
| SUMMIT STATE BANK | ||||||
| BALANCE SHEETS | ||||||
| (In thousands except share data) | ||||||
| December 31, 2024 | December 31, 2023 | |||||
| (Unaudited) | (Unaudited) | |||||
| ASSETS | ||||||
| Cash and due from banks | $ | 51,403 | $ | 57,789 | ||
| Total cash and cash equivalents | 51,403 | 57,789 | ||||
| Investment securities: | ||||||
| Available-for-sale, less allowance for credit losses of | ||||||
| (at fair value; amortized cost of | 68,228 | 84,546 | ||||
| Loans, less allowance for credit losses of | 904,999 | 938,626 | ||||
| Bank premises and equipment, net | 5,155 | 5,316 | ||||
| Investment in Federal Home Loan Bank (FHLB) stock, at cost | 5,889 | 5,541 | ||||
| Goodwill | - | 4,119 | ||||
| Other real estate owned | 5,130 | - | ||||
| Affordable housing tax credit investments | 7,484 | 8,405 | ||||
| Accrued interest receivable and other assets | 19,269 | 18,166 | ||||
| Total assets | $ | 1,067,557 | $ | 1,122,508 | ||
| LIABILITIES AND | ||||||
| SHAREHOLDERS' EQUITY | ||||||
| Deposits: | ||||||
| Demand - non interest-bearing | $ | 185,756 | $ | 201,909 | ||
| Demand - interest-bearing | 193,355 | 244,748 | ||||
| Savings | 47,235 | 54,352 | ||||
| Money market | 226,879 | 212,278 | ||||
| Time deposits that meet or exceed the FDIC insurance limit | 70,717 | 63,159 | ||||
| Other time deposits | 238,620 | 233,247 | ||||
| Total deposits | 962,562 | 1,009,693 | ||||
| FHLB advances | - | - | ||||
| Junior subordinated debt, net | 5,935 | 5,920 | ||||
| Affordable housing commitment | 583 | 4,094 | ||||
| Accrued interest payable and other liabilities | 6,216 | 5,123 | ||||
| Total liabilities | 975,296 | 1,024,830 | ||||
| Total shareholders' equity | 92,261 | 97,678 | ||||
| Total liabilities and shareholders' equity | $ | 1,067,557 | $ | 1,122,508 | ||
| Financial Summary | ||||||||||||||||
| (In thousands except per share data) | ||||||||||||||||
| As of and for the | As of and for the | |||||||||||||||
| Three Months Ended | Year Ended | |||||||||||||||
| December 31, 2024 | December 31, 2023 | December 31, 2024 | December 31, 2023 | |||||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||||||||||
| Statement of Income Data: | ||||||||||||||||
| Net interest income | $ | 7,702 | $ | 7,829 | $ | 29,476 | $ | 35,462 | ||||||||
| Provision for (reversal of) credit losses on loans | 6,646 | (31 | ) | 7,958 | 342 | |||||||||||
| Provision for (reversal of) credit losses on unfunded loan commitments | 8 | (65 | ) | (91 | ) | (68 | ) | |||||||||
| (Reversal of) provision for credit losses on investments | (2 | ) | 31 | (22 | ) | 58 | ||||||||||
| Non-interest income | 1,373 | 297 | 4,152 | 5,201 | ||||||||||||
| Non-interest expense | 10,200 | 5,483 | 29,408 | 25,050 | ||||||||||||
| (Reversal of) provision for income taxes | (1,172 | ) | 807 | 31 | 4,459 | |||||||||||
| Net (loss) income | $ | (6,605 | ) | $ | 1,901 | $ | (3,656 | ) | $ | 10,822 | ||||||
| Selected per Common Share Data: | ||||||||||||||||
| Basic earnings per common share | $ | (0.98 | ) | $ | 0.28 | $ | (0.54 | ) | $ | 1.62 | ||||||
| Diluted earnings per common share | $ | (0.98 | ) | $ | 0.28 | $ | (0.54 | ) | $ | 1.62 | ||||||
| Dividend per share | $ | - | $ | 0.12 | $ | 0.28 | $ | 0.48 | ||||||||
| Book value per common share (1) | $ | 13.61 | $ | 14.40 | $ | 13.61 | $ | 14.40 | ||||||||
| Selected Balance Sheet Data: | ||||||||||||||||
| Assets | $ | 1,067,557 | $ | 1,122,508 | $ | 1,067,557 | $ | 1,122,508 | ||||||||
| Loans, net | 904,999 | 938,626 | 904,999 | 938,626 | ||||||||||||
| Deposits | 962,562 | 1,009,693 | 962,562 | 1,009,693 | ||||||||||||
| Average assets | 1,098,890 | 1,123,057 | 1,091,047 | 1,142,790 | ||||||||||||
| Average earning assets | 1,064,872 | 1,089,808 | 1,058,766 | 1,110,801 | ||||||||||||
| Average shareholders' equity | 101,313 | 94,096 | 99,082 | 93,621 | ||||||||||||
| Nonperforming loans | 27,754 | 44,206 | 27,754 | 44,206 | ||||||||||||
| Other real estate owned | 5,130 | - | - | - | ||||||||||||
| Total nonperforming assets | 32,884 | 44,206 | 32,884 | 44,206 | ||||||||||||
| Selected Ratios: | ||||||||||||||||
| (Loss) return on average assets (2) | -2.39 | % | 0.67 | % | -0.34 | % | 0.95 | % | ||||||||
| (Loss) return on average shareholders' equity (2) | -25.94 | % | 8.02 | % | -3.69 | % | 11.56 | % | ||||||||
| Efficiency ratio (3) | 112.47 | % | 67.47 | % | 87.47 | % | 61.60 | % | ||||||||
| Net interest margin (2) | 2.88 | % | 2.85 | % | 2.78 | % | 3.19 | % | ||||||||
| Common equity tier 1 capital ratio | 10.19 | % | 9.90 | % | 10.19 | % | 9.90 | % | ||||||||
| Tier 1 capital ratio | 10.19 | % | 9.90 | % | 10.19 | % | 9.90 | % | ||||||||
| Total capital ratio | 11.94 | % | 11.75 | % | 11.94 | % | 11.75 | % | ||||||||
| Tier 1 leverage ratio | 8.92 | % | 8.85 | % | 8.92 | % | 8.85 | % | ||||||||
| Common dividend payout ratio (4) | 0.00 | % | 42.63 | % | -51.81 | % | 30.05 | % | ||||||||
| Average shareholders' equity to average assets | 9.22 | % | 8.38 | % | 9.08 | % | 8.19 | % | ||||||||
| Nonperforming loans to total loans | 3.02 | % | 4.63 | % | 3.02 | % | 4.63 | % | ||||||||
| Nonperforming assets to total assets | 3.08 | % | 3.94 | % | 3.08 | % | 3.94 | % | ||||||||
| Allowance for credit losses to total loans | 1.50 | % | 1.60 | % | 1.50 | % | 1.60 | % | ||||||||
| Allowance for credit losses to nonperforming loans | 49.61 | % | 34.43 | % | 49.61 | % | 34.43 | % | ||||||||
| (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 (loss) income available for common shareholders. | ||||||||||||||||
FAQ
What caused Summit State Bank's (SSBI) significant loss in Q4 2024?
How much did SSBI's non-performing assets decrease in Q4 2024?
What is SSBI's plan for reducing non-performing loans in 2025?
Why did SSBI suspend cash dividends for Q1 2025?
What was SSBI's net interest margin in Q4 2024?
