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Summit State Bank Reports Net Income of $626,000 for Third Quarter 2024

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Summit State Bank (SSBI) reported Q3 2024 net income of $626,000 ($0.09 per diluted share), down from $1,821,000 ($0.27 per diluted share) in Q3 2023. Net operating income before credit loss provision decreased to $2,122,000 from $2,520,000 year-over-year. The bank suspended its quarterly dividend for Q3 2024 to focus on building capital and liquidity. Operating expenses decreased to $6,181,000 from $6,926,000. Total deposits declined 3% to $1,002,770,000, while net loans decreased 2% to $917,367,000. The bank maintained strong liquidity of $458,554,000 (41.0% of total assets) but faced challenges with nonperforming assets at 3.75% of total assets.

Summit State Bank (SSBI) ha riportato un reddito netto per il terzo trimestre 2024 di $626,000 ($0.09 per azione diluita), in calo rispetto a $1,821,000 ($0.27 per azione diluita) nel terzo trimestre 2023. Il reddito operativo netto prima delle perdite su crediti è diminuito a $2,122,000 da $2,520,000 rispetto all'anno precedente. La banca ha sospeso il suo dividendo trimestrale per il terzo trimestre 2024 per concentrarsi sull'accumulo di capitale e liquidità. Le spese operative sono diminuite a $6,181,000 da $6,926,000. I depositi totali sono diminuiti del 3% a $1,002,770,000, mentre i prestiti netti sono scesi del 2% a $917,367,000. La banca ha mantenuto una forte liquidità di $458,554,000 (41.0% delle attività totali) ma ha affrontato sfide con beni non performanti al 3.75% delle attività totali.

Summit State Bank (SSBI) reportó un ingreso neto de $626,000 ($0.09 por acción diluida) en el tercer trimestre de 2024, en comparación con $1,821,000 ($0.27 por acción diluida) en el tercer trimestre de 2023. El ingreso operativo neto antes de la provisión para pérdidas crediticias disminuyó a $2,122,000 desde $2,520,000 en el año. El banco suspendió su dividendo trimestral para el tercer trimestre de 2024 para centrarse en aumentar su capital y liquidez. Los gastos operativos disminuyeron a $6,181,000 desde $6,926,000. Los depósitos totales cayeron un 3% a $1,002,770,000, mientras que los préstamos netos disminuyeron un 2% a $917,367,000. El banco mantuvo una sólida liquidez de $458,554,000 (41.0% de los activos totales), pero enfrentó desafíos con activos no productivos que representan el 3.75% de los activos totales.

Summit State Bank (SSBI)는 2024년 3분기 순이익이 $626,000 ($0.09 액면가 기준)으로, 2023년 3분기 $1,821,000 ($0.27 액면가 기준)에서 감소했다고 보고했습니다. 신용 손실 충당금 전 순영업이익은 전년 대비 $2,122,000에서 $2,520,000으로 감소했습니다. 은행은 자본과 유동성을 구축하는 데 집중하기 위해 2024년 3분기 분기 배당금을 중단했습니다. 운영비용은 $6,181,000에서 $6,926,000으로 감소했습니다. 총 예금은 $1,002,770,000으로 3% 감소했으며, 순대출금은 $917,367,000으로 2% 감소했습니다. 은행은 총 자산의 41.0%인 $458,554,000의 강력한 유동성을 유지하고 있으나, 총 자산의 3.75%에 해당하는 부실 자산으로 어려움을 겪고 있습니다.

Summit State Bank (SSBI) a annoncé un revenu net de 626 000 $ (0,09 $ par action diluée) pour le troisième trimestre 2024, en baisse par rapport à 1 821 000 $ (0,27 $ par action diluée) au troisième trimestre 2023. Le revenu opérationnel net avant la provision pour pertes de crédit a diminué à 2 122 000 $ contre 2 520 000 $ d'une année sur l'autre. La banque a suspendu son dividende trimestriel pour le troisième trimestre 2024 afin de se concentrer sur la constitution de capital et de liquidités. Les dépenses opérationnelles ont diminué à 6 181 000 $ contre 6 926 000 $. Les dépôts totaux ont baissé de 3 % à 1 002 770 000 $, tandis que les prêts nets ont diminué de 2 % à 917 367 000 $. La banque a maintenu une liquidité solide de 458 554 000 $ (41,0 % des actifs totaux), mais a rencontré des difficultés avec des actifs non performants représentant 3,75 % des actifs totaux.

Summit State Bank (SSBI) meldete im dritten Quartal 2024 ein Nettoergebnis von $626,000 ($0,09 je verwässerte Aktie), ein Rückgang gegenüber $1,821,000 ($0,27 je verwässerte Aktie) im dritten Quartal 2023. Das operative Nettoergebnis vor der Rückstellung für Kreditausfälle verringerte sich im Jahresvergleich von $2,520,000 auf $2,122,000. Die Bank setzte ihre vierteljährliche Dividende für das dritte Quartal 2024 aus, um sich auf den Aufbau von Kapital und Liquidität zu konzentrieren. Die Betriebsausgaben sanken von $6,926,000 auf $6,181,000. Die Gesamteinlagen fielen um 3% auf $1,002,770,000, während die Nettokredite um 2% auf $917,367,000 zurückgingen. Die Bank hielt eine starke Liquidität von $458,554,000 (41,0% der Gesamtaktiva) aufrecht, hatte jedoch Probleme mit notleidenden Vermögenswerten, die 3,75% der Gesamtaktiva ausmachten.

Positive
  • Operating expenses decreased by $745,000 year-over-year
  • Strong liquidity position at 41.0% of total assets ($458,554,000)
  • Book value increased to $14.85 per share from $13.77 year-over-year
  • Well-capitalized status maintained with improved equity to assets ratio of 9.10%
Negative
  • Net income declined 66% to $626,000 from $1,821,000 year-over-year
  • Earnings per share dropped to $0.09 from $0.27 year-over-year
  • Quarterly dividend suspended for Q3 2024
  • Nonperforming assets increased to 3.75% of total assets
  • Net interest margin declined to 2.71% from 2.80% year-over-year
  • Total deposits decreased 3% year-over-year
  • Cost of deposits increased to 3.05% from 2.63% year-over-year

Insights

Summit State Bank's Q3 2024 results show significant challenges, with net income dropping 65.6% year-over-year to $626,000 ($0.09 per share) from $1.82M ($0.27 per share). Key concerns include elevated nonperforming assets at 3.75% of total assets, rising deposit costs at 3.05% and suspension of quarterly dividends after 83 consecutive payments. The $1.32M provision for credit losses and concentration in farmland-secured troubled loans ($32.2M) signal asset quality deterioration. Despite maintaining strong liquidity at $458.6M (41% of assets) and adequate capital ratios, the declining net interest margin of 2.71% and deposit outflows reflect ongoing operational pressures.

SANTA ROSA, Calif., Oct. 30, 2024 (GLOBE NEWSWIRE) -- Summit State Bank (the “Bank”) (Nasdaq: SSBI) today reported net income for the third quarter ended September 30, 2024 of $626,000, or $0.09 per diluted share, compared to net income of $1,821,000, or $0.27 per diluted share for the third quarter ended September 30, 2023. Net operating income before credit loss provision and income tax was $2,122,000 for the third quarter ended September 30, 2024 compared to $2,520,000 for the third quarter ended 2023.

In September 2024 the Bank declared its eighty-third consecutive quarterly cash dividend.

“In this time of economic uncertainty, the Board is focused on balancing its commitment to shareholders while also building capital, increasing liquidity and positioning the Bank to create long-term value,” said Brian Reed, President and CEO. “As such, the Bank is not announcing a dividend for the third quarter of 2024.”

Third Quarter 2024 Financial Highlights (at or for the three months ended September 30, 2024)

  • Net operating income before credit loss provision and income tax increased quarter-to-date to $2,122,000 for Q3 2024 when compared to $1,955,000 in Q1 2024 to $1,267,000 in Q2 2024.
  • Operating expenses decreased in the third quarter of 2024 to $6,181,000 compared to $6,926,000 in the third quarter of 2023.
  • The improvement in net income for the third quarter ended September 30, 2024 was offset by a $1,320,000 provision for credit losses.
  • Net income for the third quarter ended September 30, 2024 was $626,000, or $0.09 per diluted share, compared to $1,821,000, or $0.27 per diluted share, in the third quarter of 2023 and $928,000, or $0.14 per diluted share, for the second quarter ended June 30, 2024.
  • The allowance for credit losses to total loans was 1.66% on September 30, 2024 which is based on estimating credit losses for the life of the loans in the portfolio.
  • The Bank maintained strong total liquidity of $458,554,000, or 41.0% of total assets as of September 30, 2024. This includes on balance sheet liquidity (cash and equivalents and unpledged available-for-sale securities) of $148,499,000 or 13.3% of total assets, plus available borrowing capacity of $310,055,000 or 27.7% of total assets.
  • The Bank remains well-capitalized and all regulatory capital ratios were well above minimum requirements on September 30, 2024.
  • Net loans decreased $14,832,000 to $917,367,000 at September 30, 2024, compared to $932,199,000 one year earlier and increased $3,853,000 compared to $913,514,000 three months earlier.
  • Total deposits decreased 3% to $1,002,770,000 at September 30, 2024, compared to $1,030,836,000 at September 30, 2023, and increased 4% when compared to the prior quarter end of $966,587,000.
  • Book value was $14.85 per share, compared to $13.77 per share a year ago and $14.44 in the preceding quarter.

Operating Results

For the third quarter of 2024, the annualized return on average assets was 0.23% and the annualized return on average equity was 2.48%. This compared to an annualized return on average assets of 0.63% and an annualized return on average equity of 7.59%, respectively, for the third quarter of 2023.

Summit’s net interest margin was 2.71% in the third quarter of 2024 and 2.80% in the third quarter of 2023. Interest and dividend income increased 0.3% to $14,977,000 in the third quarter of 2024 compared to $14,931,000 in the third quarter of 2023. The slight increase in interest income is attributable to a $763,000 increase in interest on loans offset by a decrease of $671,000 in interest on deposits with banks and a decrease in interest on investment securities of $45,000.

“Our earnings have been substantially impacted by the high interest rate environment that continues to put upward pressure on our funding costs,” said Reed. “The cost of deposits was 3.05% during the third quarter, compared to 2.95% during the preceding quarter, as customers continue to focus on higher yields. The recent rate decrease by the Federal Reserve will help alleviate some of the pricing pressures, but rates remain elevated. We have been actively implementing programs to reduce cost of funds while preserving our local deposit relationships.”

Noninterest income decreased in the third quarter of 2024 to $1,030,000 compared to $1,496,000 in the third quarter of 2023. The decrease is primarily attributed to the Bank recognizing $474,000 in gains on sales of SBA and USDA guaranteed loan balances in the third quarter of 2024 compared to $1,046,000 in gains on sales of SBA and USDA guaranteed loan balances in the third quarter of 2023.

Operating expenses decreased in the third quarter of 2024 to $6,181,000 compared to $6,926,000 in the third quarter of 2023. The decrease is primarily due to a decrease in the accrual employee bonus expenses of $238,000, a reduction in stock appreciation rights expense of $179,000, a decrease in marketing expense of $113,000 and a decrease of $75,000 in legal expense.

Balance Sheet Review

Net loans decreased 2% to $917,367,000 at September 30, 2024, compared to $932,199,000 at September 30, 2023, and decreased 0.4% compared to June 30, 2024. The Bank’s largest loan types are commercial real estate loans which make up 78% of the portfolio, “secured by farmland” totaling 9% of the portfolio, and 8% in commercial and industrial loans. Of the commercial real estate total, approximately 32% or $235,000,000 is owner occupied and the remaining 68% or $491,000,000 is non-owner occupied. The portfolio is well diversified between industries with no significant concentrations, including office space which totals $116,300,000.

Total deposits decreased 3% to $1,002,770,000 at September 30, 2024, compared to $1,030,836,000 at September 30, 2023, and increased 4% when compared to the prior quarter end. At September 30, 2024, noninterest bearing demand deposit accounts decreased 9% compared to a year ago and represented 19% of total deposits; savings, NOW and money market accounts increased 6% compared to a year ago and represented 48% of total deposits, and CDs decreased 10% compared to a year ago and comprised 33% of total deposits. The decrease in deposits is a result of the Bank managing its liquidity levels and asset growth. The average cost of deposits was 3.05% in the third quarter of 2024, compared to 2.63% in the third quarter of 2023.

Shareholders’ equity was $100,662,000 at September 30, 2024, compared to $97,949,000 three months earlier and $93,439,000 a year earlier. The increase in shareholders’ equity compared to a year ago was primarily due to a reduction in accumulated other comprehensive loss on securities of $4,790,000 and an increase of $2,145,000 in retained earnings. At September 30, 2024 book value was $14.85 per share, compared to $14.44 three months earlier, and $13.77 at September 30, 2023.

Summit State Bank continues to maintain capital levels in excess of the requirements to be categorized as “well-capitalized” with average equity to assets of 9.10% at September 30, 2024, compared to 9.04% at June 30, 2024, and 8.24% at September 30, 2023. The increase compared to September 2023 was due to the Bank’s retention of capital which is exceeding asset growth.

Credit Quality

“Our primary focus has been managing asset quality and reducing portfolio risk,” said Reed. “Our nonperforming loans, which are concentrated in the “secured by farmland” category, remain elevated as we work with our customers to cure or payoff these loans. The Bank is committed to acting so it can replace this segment of the portfolio with performing loans. Our commercial real estate portfolios continue to perform well.”

Nonperforming assets were $41,971,000, or 3.75% of total assets, at September 30, 2024. This compared to $40,994,000 in nonperforming assets at June 30, 2024, and $35,267,000 in nonperforming assets at September 30, 2023. There are three specific relationships totaling $32,200,000, and one real estate owned for $5,130,000, that together make up 89% of nonperforming assets portfolio. These three relationships are “secured by farmland” and the Bank has specific reserves set aside based on current appraised values net of any costs.

There were no net charge-offs during the three months ended September 30, 2024, compared to net charge-offs of $1,347,000 during the three months ended June 30, 2024 and net recoveries of $10,000 during the three months ended September 30, 2023. Net charge-offs for the three months ended June 30, 2024 were related to a loan taken into real estate owned.

For the third quarter of 2024, consistent with factors within the allowance for credit losses, the Bank recorded a $1,320,000 provision for credit loss expense for loans, a $8,000 reversal of credit losses for unfunded loan commitments and a $19,000 reversal of credit losses on investments. This compared to a $27,000 reversal of credit loss expense on loans, a $5,000 reversal of credit losses on unfunded loan commitments and a $27,000 provision for credit losses on investments in the third quarter of 2023.

The allowance for credit losses to total loans was 1.66% on September 30, 2024, and 1.61% on September 30, 2023. The increase is due to a provision for credit losses on loans of $1,320,000 recorded during the three months ended September 30, 2024. The provision covers a $1,000,000 specific loan reserve and $300,000 general pool loan reserve.

About Summit State Bank

Summit State Bank, a local community bank, has total assets of $1.1 billion and total equity of $101 million at September 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, 60% 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.

Forward-looking Statements

The financial results in this release are preliminary. Final financial results and other disclosures will be reported in Summit State Bank’s quarterly report on Form 10-Q for the period ended September 30, 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 contained herein, the statements contained in this news 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. This release may contain forward-looking statements that are subject to risks and uncertainties. Such risks and uncertainties may include but are not necessarily limited to fluctuations in interest rates, inflation, government regulations and general economic conditions, and competition within the business areas in which the Bank will be conducting its operations, including the real estate market in California and other factors beyond the Bank’s control. Such risks and uncertainties could cause results for subsequent interim periods or for the entire year to differ materially from those indicated. You should not place undue reliance on the forward-looking statements, which reflect management’s view only as of the date hereof. The Bank undertakes no obligation to publicly revise these forward-looking statements to reflect subsequent events or circumstances.

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


          
SUMMIT STATE BANK
STATEMENTS OF INCOME
(In thousands except earnings per share data)
          
          
     Three Months Ended
     September 30, 2024 June 30, 2024 September 30, 2023
     (Unaudited) (Unaudited) (Unaudited)
          
Interest and dividend income:     
 Interest and fees on loans$13,594  $13,083  $12,831 
 Interest on deposits with banks 592   451   1,263 
 Interest on investment securities 663   709   708 
 Dividends on FHLB stock 128   128   129 
   Total interest and dividend income 14,977   14,371   14,931 
Interest expense:     
 Deposits 7,563   7,046   6,895 
 Federal Home Loan Bank advances 4   137   10 
 Junior subordinated debt 138   94   94 
   Total interest expense 7,705   7,277   6,999 
   Net interest income before provision for credit losses 7,272   7,094   7,932 
Provision for (reversal of) credit losses on loans 1,320   6   (27)
(Reversal of) credit losses on unfunded loan commitments (8)  (26)  (5)
(Reversal of) provision for credit losses on investments (19)  4   27 
   Net interest income after provision for (reversal of) credit     
   losses on loans, unfunded loan commitments and investments 5,979   7,110   7,937 
Non-interest income:     
 Service charges on deposit accounts 241   227   231 
 Rental income 60   60   61 
 Net gain on loan sales 474   270   1,046 
 Other income 255   244   158 
   Total non-interest income 1,030   801   1,496 
Non-interest expense:     
 Salaries and employee benefits 3,988   4,039   4,362 
 Occupancy and equipment 420   443   432 
 Other expenses 1,773   2,145   2,132 
   Total non-interest expense 6,181   6,627   6,926 
   Income before provision for income taxes 828   1,284   2,507 
Provision for income taxes 202   356   686 
   Net income$626  $928  $1,821 
          
Basic earnings per common share$0.09  $0.14  $0.27 
Diluted earnings per common share$0.09  $0.14  $0.27 
          
Basic weighted average shares of common stock outstanding 6,719   6,719   6,697 
Diluted weighted average shares of common stock outstanding 6,719   6,719   6,705 
          


         
SUMMIT STATE BANK
STATEMENTS OF INCOME
(In thousands except earnings per share data)
         
         
     Nine Months Ended
     September 30, 2024  September 30, 2023
     (Unaudited)  (Unaudited)
         
Interest and dividend income:    
 Interest and fees on loans$39,952   $39,152 
 Interest on deposits with banks 1,405    3,618 
 Interest on investment securities 2,084    2,143 
 Dividends on FHLB stock 386    293 
   Total interest and dividend income 43,827    45,206 
Interest expense:    
 Deposits 21,396    17,114 
 Federal Home Loan Bank advances 332    177 
 Junior Subordinated Debt 325    281 
   Total interest expense 22,053    17,572 
   Net interest income before provision for credit losses 21,774    27,634 
Provision for credit losses on loans 1,311    373 
(Reversal of) credit losses on unfunded loan commitments (99)   (3)
(Reversal of) provision for credit losses on investments (20)   27 
   Net interest income after provision for (reversal of) credit    
   losses on loans, unfunded loan commitments and investments 20,582    27,237 
Non-interest income:    
 Service charges on deposit accounts 701    653 
 Rental income 180    139 
 Net gain on loan sales 1,257    2,481 
 Other income 641    1,630 
   Total non-interest income 2,779    4,903 
Non-interest expense:    
 Salaries and employee benefits 12,210    12,354 
 Occupancy and equipment 1,348    1,326 
 Other expenses 5,651    5,886 
   Total non-interest expense 19,209    19,566 
   Income before provision for income taxes 4,152    12,574 
Provision for income taxes 1,203    3,652 
   Net income$2,949   $8,922 
         
Basic earnings per common share$0.44   $1.33 
Diluted earnings per common share$0.44   $1.33 
         
Basic weighted average shares of common stock outstanding 6,712    6,694 
Diluted weighted average shares of common stock outstanding 6,712    6,697 
         


         
SUMMIT STATE BANK
BALANCE SHEETS
(In thousands except share data)
         
         
    September 30, 2024 June 30, 2024 September 30, 2023
    (Unaudited) (Unaudited) (Unaudited)
         
ASSETS     
         
Cash and due from banks$80,928  $40,142  $86,604 
   Total cash and cash equivalents 80,928   40,142   86,604 
         
Investment securities:     
 Available-for-sale, less allowance for credit losses of $38, $57 and $0     
 (at fair value; amortized cost of $86,225, $96,407 and $97,099) 76,205   83,105   80,312 
         
Loans, less allowance for credit losses of $15,466, $14,145 and $15,243 917,367   913,514   932,199 
Bank premises and equipment, net 5,251   5,306   5,334 
Investment in Federal Home Loan Bank stock (FHLB), at cost 5,889   5,889   5,541 
Goodwill  4,119   4,119   4,119 
Other Real Estate Owned 5,130   5,130   - 
Affordable housing tax credit investments 7,698   7,942   8,360 
Accrued interest receivable and other assets 16,204   16,898   19,705 
         
   Total assets$1,118,791  $1,082,045  $1,142,174 
         
LIABILITIES AND     
SHAREHOLDERS' EQUITY     
         
Deposits:     
 Demand - non interest-bearing$192,371  $183,181  $210,258 
 Demand - interest-bearing 212,214   218,124   201,516 
 Savings 45,845   42,974   54,317 
 Money market 219,593   212,750   193,080 
 Time deposits that meet or exceed the FDIC insurance limit 80,801   74,744   72,836 
 Other time deposits 251,946   234,814   298,829 
   Total deposits 1,002,770   966,587   1,030,836 
         
Federal Home Loan Bank advances -   3,500   - 
Junior subordinated debt 5,931   5,927   5,916 
Affordable housing commitment 4,061   4,061   4,435 
Accrued interest payable and other liabilities 5,367   4,021   7,548 
         
   Total liabilities 1,018,129   984,096   1,048,735 
         
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 6,776,563, 6,784,099 and 6,784,099 37,677   37,623   37,389 
 Retained earnings 70,012   69,651   67,867 
 Accumulated other comprehensive loss, net (7,027)  (9,325)  (11,817)
         
   Total shareholders' equity 100,662   97,949   93,439 
         
   Total liabilities and shareholders' equity$1,118,791  $1,082,045  $1,142,174 
         


Financial Summary
(Dollars in thousands except per share data)
       
  As of and for the
  Three Months Ended
  September 30, 2024 June 30, 2024 September 30, 2023
  (Unaudited) (Unaudited) (Unaudited)
Statement of Income Data:      
Net interest income $7,272  $7,094  $7,932 
Provision for (reversal of) credit losses on loans  1,320   6   (27)
(Reversal of) credit losses on unfunded loan commitments (8)  (26)  (5)
(Reversal of) provision for credit losses on investments (19)  4   27 
Non-interest income  1,030   801   1,496 
Non-interest expense  6,181   6,627   6,926 
Provision for income taxes  202   356   686 
Net income $626  $928  $1,821 
       
Selected per Common Share Data:      
Basic earnings per common share $0.09  $0.14  $0.27 
Diluted earnings per common share $0.09  $0.14  $0.27 
Dividend per share $0.04  $0.12  $0.12 
Book value per common share (1) $14.85  $14.44  $13.77 
       
Selected Balance Sheet Data:       
Assets $1,118,791  $1,082,045  $1,142,174 
Loans, net  917,367   913,514   932,199 
Deposits  1,002,770   966,587   1,030,836 
Average assets  1,098,469   1,078,700   1,155,007 
Average earning assets  1,063,476   1,049,254   1,123,951 
Average shareholders' equity  99,962   97,548   95,180 
Nonperforming loans  36,841   35,864   35,267 
Net loans (charged-off) recovered  -   (1,067)  10 
Other real estate owned  5,130   5,130   - 
Total nonperforming assets  41,971   40,994   35,267 
       
Selected Ratios:      
Return on average assets (2)  0.23%  0.35%  0.63%
Return on average common shareholders' equity (2)  2.48%  3.82%  7.59%
Efficiency ratio (3)  74.45%  83.94%  73.46%
Net interest margin (2)  2.71%  2.71%  2.80%
Common equity tier 1 capital ratio  9.94%  10.22%  9.65%
Tier 1 capital ratio  9.94%  10.22%  9.65%
Total capital ratio  11.66%  12.08%  11.49%
Tier 1 leverage ratio  9.18%  9.31%  8.47%
Common dividend payout ratio (4)  42.34%  87.96%  43.82%
Average shareholders' equity to average assets  9.10%  9.04%  8.24%
Nonperforming loans to total loans  3.95%  3.87%  3.72%
Nonperforming assets to total assets  3.75%  3.79%  3.09%
Allowance for credit losses to total loans  1.66%  1.52%  1.61%
Allowance for credit losses to nonperforming loans  41.98%  39.44%  43.22%
   
(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.  
   
       


Financial Summary
(Dollars in thousands except per share data)
      
  As of and for the
  Nine Months Ended
  September 30, 2024  September 30, 2023
  (Unaudited)  (Unaudited)
Statement of Income Data:     
Net interest income $21,774   $27,634 
(Reversal of) provision for credit losses on loans  1,311    373 
(Reversal of) provision for credit losses on unfunded loan commitments (99)   (3)
(Reversal of) provision for credit losses on investments (20)   27 
Non-interest income  2,779    4,903 
Non-interest expense  19,209    19,566 
Provision for income taxes  1,203    3,652 
Net income $2,949   $8,922 
      
Selected per Common Share Data:     
Basic earnings per common share $0.44   $1.33 
Diluted earnings per common share $0.44   $1.33 
Dividend per share $0.28   $0.36 
Book value per common share (1) $14.85   $13.77 
      
Selected Balance Sheet Data:      
Assets $1,118,791   $1,142,174 
Loans, net  917,367    932,199 
Deposits  1,002,770    1,030,836 
Average assets  1,088,413    1,149,441 
Average earning assets  1,056,714    1,117,877 
Average shareholders' equity  98,333    93,461 
Nonperforming loans  36,841    35,267 
Net loans (charged-off) recovered  (1,066)   31 
Other real estate owned  5,130    - 
Total nonperforming assets  41,971    35,267 
      
Selected Ratios:     
Return on average assets (2)  0.36%   1.04%
Return on average common shareholders' equity (2)  4.00%   12.76%
Efficiency ratio (3)  78.23%   60.13%
Net interest margin (2)  2.74%   3.31%
Common equity tier 1 capital ratio  9.94%   9.65%
Tier 1 capital ratio  9.94%   9.65%
Total capital ratio  11.66%   11.49%
Tier 1 leverage ratio  9.18%   8.47%
Common dividend payout ratio (4)  64.23%   27.36%
Average shareholders' equity to average assets  9.03%   8.13%
Nonperforming loans to total loans  3.95%   3.72%
Nonperforming assets to total assets  3.75%   3.09%
Allowance for credit losses to total loans  1.66%   1.61%
Allowance for credit losses to nonperforming loans  41.98%   43.22%
   
(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.  

FAQ

What was Summit State Bank's (SSBI) earnings per share in Q3 2024?

Summit State Bank reported earnings of $0.09 per diluted share in Q3 2024, compared to $0.27 per diluted share in Q3 2023.

Why did Summit State Bank (SSBI) suspend its Q3 2024 dividend?

The bank suspended its Q3 2024 dividend to focus on building capital, increasing liquidity, and positioning the bank to create long-term value during economic uncertainty.

What was Summit State Bank's (SSBI) nonperforming assets ratio in Q3 2024?

Summit State Bank's nonperforming assets were $41,971,000, representing 3.75% of total assets as of September 30, 2024.

Summit State Bank

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Banks - Regional
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Santa Rosa