Business
Summit State Bank Reports Net Income of $3.0 Million for Second Quarter 2023; Declares Quarterly Cash Dividend of $0.12 Per Common Share
SANTA ROSA, Calif., July 25, 2023 (GLOBE NEWSWIRE) -- Summit State Bank (Nasdaq: SSBI) today reported net income for the second quarter ended June 30, 2023 of
About this update from Summit State Bank
[{"type":"text","content":"SANTA ROSA, Calif., July 25, 2023 (GLOBE NEWSWIRE) -- Summit State Bank (Nasdaq: SSBI) today reported net income for the second quarter ended June 30, 2023 of $2,985,000, or $0.45 per diluted share, a decrease of $1,516,000, or 33.7%, compared to net income of $4,501,000, or $0.67 per diluted share for the second quarter ended June 30, 2022. Financial results for the quarter reflect strong net interest income offset by lower non-interest income resulting from reduced gain on sale of loan activity. Additionally, a quarterly dividend of $0.12 per share was declared for common shareholders. The Board of Directors declared a quarterly cash dividend of $0.12 per share on July 24, 2023. The quarterly dividend will be paid on August 17, 2023 to shareholders of record on August 10, 2023. \"Our second quarter results reflected solid net interest income generation, fueled by strong loan growth,” said Brian Reed, President and CEO. “Deposits also increased with growth across half of the deposit categories. We have been very deliberate in our deposit gathering strategies, and as a result were able to grow customer deposits during the quarter, at a time when the banking industry is experiencing deposit contraction. While the net interest margin decrease was primarily related to pressure from the funding side of the balance sheet, we remain prudent with all new loan pricing, with an average loan rate of 5.66% during the quarter, compared to 5.59% in the prior quarter. Despite the challenges and headwinds facing the banking industry, our ability to grow our balance sheet organically will ultimately further enhance the value of our Bank over time.” Second Quarter 2023 Financial Highlights (at or for the three months ended June 30, 2023) Net income was $2,985,000, or $0.45 per diluted share, compared to $4,501,000, or $0.67 per diluted share, in the second quarter of 2022 and $4,116,000, or $0.62 per diluted share, for the quarter ended March 31, 2023.Provision for credit losses was $35,000, compared to $998,000 in the second quarter a year ago.Net interest margin was 3.44%, compared to 3.69% in the preceding quarter and 4.36% in the second quarter a year ago.Second quarter revenues (net interest income plus noninterest income) decreased 12.2% to $11,113,000, compared to $12,656,000 in the second quarter a year ago.Annualized return on average a...