Summit State Bank Reports Revised Fourth Quarter 2024 Financial Results
Summit State Bank (SSBI) has revised its Q4 2024 financial results, reporting a net loss of $7.14 million ($1.06 loss per share) and full-year 2024 net loss of $4.19 million ($0.62 loss per share). The revision includes a $693,000 real estate valuation adjustment, $146,000 increase in unfunded loan reserves, and $76,000 credit loss provision reversal.
Key impacts include:
- Q4 noninterest income reduced to $680,000 from $1.37 million
- Total provision increased to $6.72 million in Q4
- Net interest margin improved to 2.88% in Q4
- Non-performing assets decreased to $32.19 million (3.02% of total assets)
- Tier 1 Leverage ratio at 8.87%
The bank suspended Q1 2025 dividends to build capital and increase liquidity. Management expects significant reduction in non-performing loans through planned collateral sales in H1 2025.
Summit State Bank (SSBI) ha rivisto i risultati finanziari del Q4 2024, riportando una perdita netta di 7,14 milioni di dollari (perdita di 1,06 dollari per azione) e una perdita netta annuale per il 2024 di 4,19 milioni di dollari (perdita di 0,62 dollari per azione). La revisione include un aggiustamento della valutazione immobiliare di 693.000 dollari, un aumento di 146.000 dollari nelle riserve di prestiti non finanziati e un'inversione della provvista per perdite su crediti di 76.000 dollari.
Gli impatti chiave includono:
- Il reddito non da interessi del Q4 ridotto a 680.000 dollari da 1,37 milioni di dollari
- La provvista totale aumentata a 6,72 milioni di dollari nel Q4
- Il margine di interesse netto migliorato al 2,88% nel Q4
- Le attività non performanti diminuite a 32,19 milioni di dollari (3,02% del totale delle attività)
- Il rapporto di leva Tier 1 al 8,87%
La banca ha sospeso i dividendi del Q1 2025 per costruire capitale e aumentare la liquidità. La direzione prevede una significativa riduzione dei prestiti non performanti attraverso vendite di garanzie pianificate nel primo semestre del 2025.
Summit State Bank (SSBI) ha revisado sus resultados financieros del Q4 2024, reportando una pérdida neta de 7.14 millones de dólares (pérdida de 1.06 dólares por acción) y una pérdida neta anual de 4.19 millones de dólares (pérdida de 0.62 dólares por acción). La revisión incluye un ajuste de valoración inmobiliaria de 693,000 dólares, un aumento de 146,000 dólares en reservas de préstamos no financiados y una reversión de la provisión para pérdidas crediticias de 76,000 dólares.
Los impactos clave incluyen:
- Ingresos no por intereses del Q4 reducidos a 680,000 dólares desde 1.37 millones de dólares
- Provisión total aumentada a 6.72 millones de dólares en el Q4
- Margen de interés neto mejorado al 2.88% en el Q4
- Activos no productivos disminuidos a 32.19 millones de dólares (3.02% del total de activos)
- Relación de apalancamiento de Tier 1 al 8.87%
El banco suspendió los dividendos del Q1 2025 para construir capital y aumentar la liquidez. La dirección espera una reducción significativa en los préstamos no productivos a través de ventas de colateral planificadas en el primer semestre de 2025.
Summit State Bank (SSBI)는 2024년 4분기 재무 결과를 수정하여 714만 달러의 순손실(주당 1.06달러 손실)과 2024년 전체 연도에 419만 달러의 순손실(주당 0.62달러 손실)을 보고했습니다. 수정 사항에는 69만 3천 달러의 부동산 가치 조정, 14만 6천 달러의 미지급 대출 준비금 증가 및 7만 6천 달러의 신용 손실 충당금 환수가 포함됩니다.
주요 영향 사항은 다음과 같습니다:
- 4분기 비이자 수익이 68만 달러로 137만 달러에서 감소
- 4분기 총 충당금이 672만 달러로 증가
- 4분기 순이자 마진이 2.88%로 개선
- 비수익 자산이 3219만 달러로 감소(총 자산의 3.02%)
- 1급 레버리지 비율이 8.87%
은행은 자본을 구축하고 유동성을 증가시키기 위해 2025년 1분기 배당금을 중단했습니다. 경영진은 2025년 상반기 계획된 담보 판매를 통해 비수익 대출이 상당히 감소할 것으로 예상하고 있습니다.
Summit State Bank (SSBI) a révisé ses résultats financiers du T4 2024, rapportant une perte nette de 7,14 millions de dollars (perte de 1,06 dollar par action) et une perte nette annuelle de 4,19 millions de dollars (perte de 0,62 dollar par action). La révision comprend un ajustement de valorisation immobilière de 693 000 dollars, une augmentation de 146 000 dollars des réserves de prêts non financés et une inversion de la provision pour pertes de crédit de 76 000 dollars.
Les impacts clés comprennent :
- Les revenus non d'intérêts du T4 réduits à 680 000 dollars contre 1,37 million de dollars
- La provision totale augmentée à 6,72 millions de dollars au T4
- La marge d'intérêt nette améliorée à 2,88% au T4
- Les actifs non performants réduits à 32,19 millions de dollars (3,02% des actifs totaux)
- Le ratio de levier de niveau 1 à 8,87%
La banque a suspendu les dividendes du T1 2025 pour renforcer son capital et augmenter sa liquidité. La direction s'attend à une réduction significative des prêts non performants grâce à des ventes de garanties prévues au premier semestre 2025.
Summit State Bank (SSBI) hat seine Finanzzahlen für das 4. Quartal 2024 überarbeitet und meldet einen Nettoverlust von 7,14 Millionen Dollar (Verlust von 1,06 Dollar pro Aktie) sowie einen Nettoverlust für das Gesamtjahr 2024 von 4,19 Millionen Dollar (Verlust von 0,62 Dollar pro Aktie). Die Überarbeitung umfasst eine Immobilienbewertungsanpassung von 693.000 Dollar, einen Anstieg der nicht finanzierten Darlehensrücklagen um 146.000 Dollar und eine Rückbuchung der Kreditverlustrückstellungen von 76.000 Dollar.
Wichtige Auswirkungen sind:
- Die nichtzinsbezogenen Einnahmen im Q4 wurden auf 680.000 Dollar von 1,37 Millionen Dollar reduziert
- Die Gesamtrückstellung stieg im Q4 auf 6,72 Millionen Dollar
- Die Nettomarge aus Zinsen verbesserte sich im Q4 auf 2,88%
- Die notleidenden Vermögenswerte sanken auf 32,19 Millionen Dollar (3,02% der Gesamtvermögen)
- Der Tier-1-Leverage-Verhältnis liegt bei 8,87%
Die Bank hat die Dividenden für das 1. Quartal 2025 ausgesetzt, um Kapital aufzubauen und die Liquidität zu erhöhen. Das Management erwartet eine signifikante Reduzierung der notleidenden Kredite durch geplante Sicherheitenverkäufe im ersten Halbjahr 2025.
- Net interest margin improved to 2.88% in Q4 2024 from 2.71% in Q2/Q3
- Non-performing loans reduced by $9.16 million in Q4 2024
- Strong total liquidity of $435.4 million (40.8% of total assets)
- Implementation of cost-saving initiatives including 8% workforce reduction
- Expected $18 million reduction in non-performing loans through H1 2025 collateral sales
- Q4 2024 net loss of $7.14 million ($1.06 per share)
- Full-year 2024 net loss of $4.19 million ($0.62 per share)
- Non-performing assets at 3.02% of total assets ($32.19 million)
- $8.34 million in net charge-offs during Q4 2024
- Suspension of cash dividends in Q1 2025
- Book value decreased to $13.53 per share from $14.40 year-over-year
Insights
Summit State Bank's revised Q4 2024 results reveal a significantly deteriorated financial position, with the net loss deepening to $7.14 million ($1.06 per share) from the previously reported $6.61 million loss. The full-year loss worsened to $4.19 million from $3.66 million. This downward revision stems from a $693,000 real estate valuation adjustment, increased reserves, and accounting adjustments.
The bank's credit quality concerns are substantial, with non-performing assets at $32.2 million (3.02% of total assets) and $8.34 million in net charge-offs during Q4. Three credits represent 94% of non-performing loans, primarily in the struggling farmland sector. The $4.12 million goodwill impairment further weighs on results, though as a non-cash charge, it doesn't impact regulatory capital.
Despite these issues, management is taking decisive actions: suspending dividends to preserve capital, implementing an 8% workforce reduction, and focusing on resolving problem loans. The bank maintains its "well-capitalized" status with a Tier 1 Leverage ratio of 8.87%. The slight improvement in net interest margin to 2.88% offers a modest positive, reflecting reduced deposit costs (2.87% vs 3.05% in Q3).
The expected resolution of $18.19 million in non-performing loans during H1 2025 through collateral sales represents a critical step toward stabilization. However, these aggressive credit loss provisions and the continuing suspension of dividends highlight the significant challenges facing the bank as it works to strengthen its balance sheet and return to profitability.
Summit State Bank's revised results indicate serious asset quality deterioration requiring immediate corrective action. The bank's aggressive $6.57 million provision for credit losses in Q4 2024, coupled with $8.34 million in charge-offs, signals management's acknowledgment of significant loan portfolio problems, particularly in farmland loans which comprise 94% of troubled assets.
The allowance for credit losses ratio of 1.49% (down from 1.60%) may be concerning given the high level of non-performing assets, though this reflects the substantial charge-offs already taken. The bank's strategic balance sheet reduction – with loans down 4% and deposits down 5% year-over-year – appears aimed at de-risking and preserving capital rather than pursuing growth.
The capital position remains adequate but under pressure, with book value per share declining to $13.53 from $14.85 in just one quarter. While the Tier 1 Leverage ratio of 8.87% exceeds regulatory minimums, continued asset quality issues could threaten this buffer. The dividend suspension is a prudent but necessary step to conserve capital.
The planned resolution of $18.01 million in non-performing loans through collateral sales in H1 2025 is crucial for recovery, representing 65% of the troubled loan portfolio. However, these sales may result in additional losses if realized values fall below current carrying amounts. The bank's focus on cost reduction and operational efficiency is essential but must be balanced against maintaining sufficient resources to effectively manage problem assets.
SANTA ROSA, Calif., March 28, 2025 (GLOBE NEWSWIRE) -- Summit State Bank (the “Bank”) (Nasdaq: SSBI) today reported that it has revised its fourth quarter and full year 2024 financial results from those announced in the press release dated January 28, 2025. In connection with the preparation and review of its 2024 financial statements, the Bank has concluded it is necessary to record a
After the impact adjustments as outlined above, the Bank’s preliminary, unaudited fourth quarter earnings estimate is revised to a net loss of
Material Updates to Income Statement
The Bank originally reported noninterest income of
The Bank originally reported total provision for credit losses of
Impact to Income Taxes
The Bank’s revised effective tax rate for the twelve months ended December 31, 2024 was
Updated Previously Furnished Earnings Materials
For completeness, the Bank has included all previously announced financial results disclosures and related tables with this press release as revised. These results supersede the results previously disclosed in the January 28, 2025 press release.
Revised Fourth Quarter 2024 Financial Results
The Bank has 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
8.87% 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
2.59% and28.05% , 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 been0.83% and9.04% , respectively. - Net income was a loss of
$7,142,000 for the fourth quarter of 2024. Pre-tax, pre-provision net income before goodwill1 was$2,301,000 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
1.49% after charging off$8,343,000 and recording a$6,570,000 provision for credit losses on loans 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 or30.4% 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
$33,551,000 t o$905,075,000 at December 31, 2024, compared to$938,626,000 one year earlier and decreased$12,292,000 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
$13.53 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 | $ | (7,142 | ) | $ | 626 | $ | 928 | $ | 1,395 | $ | 1,901 | |||||||||||||
| Excluding provision for (reversal of) credit losses | 6,722 | 1,294 | (16 | ) | (85 | ) | (65 | ) | ||||||||||||||||
| Excluding (reversal of) provision for income taxes | (1,398 | ) | 202 | 355 | 645 | 807 | ||||||||||||||||||
| Pre-tax, pre-provision income (non-GAAP) | $ | (1,818 | ) | $ | 2,122 | $ | 1,267 | $ | 1,955 | $ | 2,643 | |||||||||||||
| Excluding goodwill impairment | 4,119 | - | - | - | - | |||||||||||||||||||
| Pre-tax, pre-provision income net of goodwill (non-GAAP) | $ | 2,301 | $ | 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 | $ | 1,098,885 | $ | 1,098,469 | $ | 1,078,700 | $ | 1,087,960 | $ | 1,123,057 | ||||||||||||||
| (Loss) return on average assets (1) | -2.59 | % | 0.23 | % | 0.35 | % | 0.51 | % | 0.67 | % | ||||||||||||||
| Net (loss) income | $ | (7,142 | ) | $ | 626 | $ | 928 | $ | 1,395 | $ | 1,901 | |||||||||||||
| Excluding provision for (reversal of) credit losses | 6,722 | 1,294 | (16 | ) | (85 | ) | (65 | ) | ||||||||||||||||
| Excluding (reversal of) provision for income taxes | (1,398 | ) | 202 | 355 | 645 | 807 | ||||||||||||||||||
| Pre-tax, pre-provision income (non-GAAP) | $ | (1,818 | ) | $ | 2,122 | $ | 1,267 | $ | 1,955 | $ | 2,643 | |||||||||||||
| Excluding goodwill impairment | 4,119 | - | - | - | - | |||||||||||||||||||
| Pre-tax, pre-provision income net of goodwill (non-GAAP) | $ | 2,301 | $ | 2,122 | $ | 1,267 | $ | 1,955 | $ | 2,643 | ||||||||||||||
| Adjusted return on average assets (non-GAAP) (1) | 0.83 | % | 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 | $ | 101,307 | $ | 99,962 | $ | 97,548 | $ | 97,471 | $ | 94,096 | ||||||||||||||
| (Loss) return on average shareholders' equity (1) | -28.05 | % | 2.48 | % | 3.82 | % | 5.74 | % | 8.02 | % | ||||||||||||||
| Net (loss) income | $ | (7,142 | ) | $ | 626 | $ | 928 | $ | 1,395 | $ | 1,901 | |||||||||||||
| Excluding provision for (reversal of) credit losses | 6,722 | 1,294 | (16 | ) | (85 | ) | (65 | ) | ||||||||||||||||
| Excluding (reversal of) provision for income taxes | (1,398 | ) | 202 | 355 | 645 | 807 | ||||||||||||||||||
| Pre-tax, pre-provision income (non-GAAP) | $ | (1,818 | ) | $ | 2,122 | $ | 1,267 | $ | 1,955 | $ | 2,643 | |||||||||||||
| Excluding goodwill impairment | 4,119 | - | - | - | - | |||||||||||||||||||
| Pre-tax, pre-provision income net of goodwill (non-GAAP) | $ | 2,301 | $ | 2,122 | $ | 1,267 | $ | 1,955 | $ | 2,643 | ||||||||||||||
| Adjusted return on average shareholders' equity (non-GAAP) (1) | 9.04 | % | 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 | 6,570 | (31 | ) | 7,882 | 342 | ||||||||||||||
| Provision for (reversal of) credit losses on unfunded loan commitments | 154 | (65 | ) | 55 | (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 | 980 | 7,894 | 21,561 | 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 | - | |||||||||||||||
| Net loss on other real estate owned | (693 | ) | - | (693 | ) | - | |||||||||||||
| FHLB prepayment fee | - | - | - | 1,024 | |||||||||||||||
| Other income | 224 | 24 | 865 | 631 | |||||||||||||||
| Total non-interest income | 680 | 297 | 3,459 | 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 | (8,540 | ) | 2,708 | (4,388 | ) | 15,281 | |||||||||||||
| (Reversal of) provision for income taxes | (1,398 | ) | 807 | (195 | ) | 4,459 | |||||||||||||
| Net (loss) income | $ | (7,142 | ) | $ | 1,901 | $ | (4,193 | ) | $ | 10,822 | |||||||||
| Basic (loss) earnings per common share | $ | (1.06 | ) | $ | 0.28 | $ | (0.62 | ) | $ | 1.62 | |||||||||
| Diluted (loss) earnings per common share | $ | (1.06 | ) | $ | 0.28 | $ | (0.62 | ) | $ | 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 | 905,075 | 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 | 4,437 | - | |||||||
| Affordable housing tax credit investments | 7,413 | 8,405 | |||||||
| Accrued interest receivable and other assets | 19,494 | 18,166 | |||||||
| Total assets | $ | 1,067,094 | $ | 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 | 511 | 4,094 | |||||||
| Accrued interest payable and other liabilities | 6,363 | 5,123 | |||||||
| Total liabilities | 975,371 | 1,024,830 | |||||||
| Total shareholders' equity | 91,723 | 97,678 | |||||||
| Total liabilities and shareholders' equity | $ | 1,067,094 | $ | 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 | 6,570 | (31 | ) | 7,882 | 342 | |||||||||||
| Provision for (reversal of) credit losses on unfunded loan commitments | 154 | (65 | ) | 55 | (68 | ) | ||||||||||
| (Reversal of) provision for credit losses on investments | (2 | ) | 31 | (22 | ) | 58 | ||||||||||
| Non-interest income | 680 | 297 | 3,459 | 5,201 | ||||||||||||
| Non-interest expense | 10,200 | 5,483 | 29,408 | 25,050 | ||||||||||||
| (Reversal of) provision for income taxes | (1,398 | ) | 807 | (195 | ) | 4,459 | ||||||||||
| Net (loss) income | $ | (7,142 | ) | $ | 1,901 | $ | (4,193 | ) | $ | 10,822 | ||||||
| Selected per Common Share Data: | ||||||||||||||||
| Basic (loss) earnings per common share | $ | (1.06 | ) | $ | 0.28 | $ | (0.62 | ) | $ | 1.62 | ||||||
| Diluted (loss) earnings per common share | $ | (1.06 | ) | $ | 0.28 | $ | (0.62 | ) | $ | 1.62 | ||||||
| Dividend per share | $ | - | $ | 0.12 | $ | 0.28 | $ | 0.48 | ||||||||
| Book value per common share (1) | $ | 13.53 | $ | 14.40 | $ | 13.53 | $ | 14.40 | ||||||||
| Selected Balance Sheet Data: | ||||||||||||||||
| Assets | $ | 1,067,094 | $ | 1,122,508 | $ | 1,067,094 | $ | 1,122,508 | ||||||||
| Loans, net | 905,075 | 938,626 | 905,075 | 938,626 | ||||||||||||
| Deposits | 962,562 | 1,009,693 | 962,562 | 1,009,693 | ||||||||||||
| Average assets | 1,098,885 | 1,123,057 | 1,091,045 | 1,142,790 | ||||||||||||
| Average earning assets | 1,064,872 | 1,089,808 | 1,058,766 | 1,110,801 | ||||||||||||
| Average shareholders' equity | 101,307 | 94,096 | 99,080 | 93,621 | ||||||||||||
| Nonperforming loans | 27,754 | 44,206 | 27,754 | 44,206 | ||||||||||||
| Other real estate owned | 4,437 | - | - | - | ||||||||||||
| Total nonperforming assets | 32,191 | 44,206 | 32,191 | 44,206 | ||||||||||||
| Selected Ratios: | ||||||||||||||||
| (Loss) return on average assets (2) | -2.59 | % | 0.67 | % | -0.38 | % | 0.95 | % | ||||||||
| (Loss) return on average shareholders' equity (2) | -28.05 | % | 8.02 | % | -4.23 | % | 11.56 | % | ||||||||
| Efficiency ratio (3) | 121.78 | % | 67.47 | % | 89.31 | % | 61.60 | % | ||||||||
| Net interest margin (2) | 2.88 | % | 2.85 | % | 2.78 | % | 3.19 | % | ||||||||
| Common equity tier 1 capital ratio | 10.14 | % | 9.90 | % | 10.14 | % | 9.90 | % | ||||||||
| Tier 1 capital ratio | 10.14 | % | 9.90 | % | 10.14 | % | 9.90 | % | ||||||||
| Total capital ratio | 11.89 | % | 11.75 | % | 11.89 | % | 11.75 | % | ||||||||
| Tier 1 leverage ratio | 8.87 | % | 8.85 | % | 8.87 | % | 8.85 | % | ||||||||
| Common dividend payout ratio (4) | 0.00 | % | 42.63 | % | -45.20 | % | 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 | 3.02 | % | 3.94 | % | 3.02 | % | 3.94 | % | ||||||||
| Allowance for credit losses to total loans | 1.49 | % | 1.60 | % | 1.49 | % | 1.60 | % | ||||||||
| Allowance for credit losses to nonperforming loans | 49.34 | % | 34.43 | % | 49.34 | % | 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 (SSBI) to revise its Q4 2024 earnings?
How much did Summit State Bank (SSBI) lose in Q4 2024?
What is SSBI's plan to reduce non-performing loans in 2025?
Why did Summit State Bank (SSBI) suspend dividends for Q1 2025?
What is Summit State Bank's (SSBI) current capital position?
