Business
Summit State Bank Reports 69% Increase in Net Income for First Quarter 2020 and Declaration of Dividend
SANTA ROSA, Calif., April 27, 2020 (GLOBE NEWSWIRE) -- Summit State Bank (Nasdaq: SSBI) today reported net income for the quarter ended March 31, 2020 of
About this update from Summit State Bank
[{"type":"text","content":"SANTA ROSA, Calif., April 27, 2020 (GLOBE NEWSWIRE) -- Summit State Bank (Nasdaq: SSBI) today reported net income for the quarter ended March 31, 2020 of $2,415,000 and diluted earnings per share of $0.40. A quarterly dividend of $0.12 per share was declared for common shareholders.\n Dividend The Board of Directors declared a $0.12 per share quarterly dividend on April 27, 2020 to be paid on May 22, 2020 to shareholders of record on May 15, 2020. Net Income and Results of Operations For the quarter ended March 31, 2020, Summit State Bank (“Bank”) had net income of $2,415,000 and diluted earnings per share of $0.40 compared to $1,425,000 in net income and $0.23 diluted earnings per share for the same quarter in 2019. Net income increased $990,000 or 69% the first quarter of 2020 compared to first quarter of 2019. Net interest income increased to $6,525,000 in the first quarter of 2020 compared to $5,547,000 in the first quarter of 2019. “Summit spent the past three years implementing a strategic plan to restructure and grow the Bank’s balance sheet and earnings,” said Brian Reed, President and CEO. “We saw the Bank’s performance successfully shift in this direction in the second half of 2019 and continue growing into the first quarter of 2020.” “With the recent impact to the economy caused by the COVID-19 pandemic, the Bank is aware that making changes to our operations and how we support our customers is imperative,” said Reed. “We are headed into a new era and although we do not know how the market will react in the medium to longer term, the Bank is planning for change. We will remain flexible and support our customers as we respond to these changing economic conditions.” Non-interest income increased in the first quarter of 2020 to $1,929,000 compared to $493,000 in the first quarter of 2019. The Bank recognized $871,000 in gain from called securities and $697,000 in gains on sales of SBA guaranteed loan balances in the first quarter of 2020 compared to $167,000 in gains on sales of SBA guaranteed loans balances in the first quarter of 2019. Reed notes that “due to the decreasing rate environment, several investment bonds originally purchased at a discount were called in the first quarter of 2020.” Total loans and deposits also increased when comparing the first quarter of 2020 to first quarter of 2019; loans were $601,400,0...