Business
Summit State Bank Reports 76% Increase in Net Income to $3,898,000 for Second Quarter 2021 and Declaration of Dividend
SANTA ROSA, Calif., July 27, 2021 (GLOBE NEWSWIRE) -- Summit State Bank (Nasdaq: SSBI) today reported record net income for the quarter ended June 30, 2021 of
About this update from Summit State Bank
[{"type":"text","content":"SANTA ROSA, Calif., July 27, 2021 (GLOBE NEWSWIRE) -- Summit State Bank (Nasdaq: SSBI) today reported record net income for the quarter ended June 30, 2021 of $3,898,000 and diluted earnings per share of $0.64. This compares to net income of $2,218,000 and diluted earnings per share of $0.37 for the quarter ended June 30, 2020. Additionally, a quarterly dividend of $0.12 per share was declared for common shareholders. Dividend The Board of Directors declared a $0.12 per share quarterly dividend on July 26, 2021 to be paid on August 20, 2021 to shareholders of record on August 13, 2021. Net Income and Results of Operations Net income increased $1,680,000 or 76% the second quarter of 2021 compared to second quarter of 2020. Net interest income increased to $8,976,000 in the second quarter of 2021 compared to $7,174,000 in the second quarter of 2020. “The Bank continues to experience strong core earnings growth in the first half of 2021,” noted Brian Reed, President and CEO. “The full opening of local businesses in June was a welcomed change. Although the future impacts to the economy is unknown and many economic indicators provide a mixed review on the speed of the recovery, we are pleased to see many businesses beginning to feel the positive impact of this transition.” The net interest margin for the second quarter of 2021 was 4.13%, annualized return on average assets was 1.76% and annualized return on average equity was 20.18%. The second quarter of 2020 had a net interest margin was 3.71%, annualized return on average assets was 1.12% and annualized return on average equity was 12.71%. The Bank is experiencing growth in its margin due to a reduction in cost of funds; this reduction was caused by repricing high cost maturing deposits and an increase in low-cost, non-maturing deposit volume. Interest income increased to $10,082,000 in the second quarter of 2021 compared to $8,816,000 in the second quarter of 2020, this was an increase of 14%. The increase in interest income is primarily attributable to $1,201,000 from increases in loan balances and $87,000 from increases in income, net of fees, due to the Paycheck Protection Program (“PPP”) loans. The fees collected from all SBA PPP loans are amortized over the life of the loan and upon forgiveness the remaining fee income, net of cost, is taken into interest income. In the seco...