Business
Summit State Bank Reports Net Income of $928,000 for Second Quarter 2024
SANTA ROSA, Calif., July 31, 2024 (GLOBE NEWSWIRE) -- Summit State Bank (the “Bank”) (Nasdaq: SSBI) today reported net income for the second quarter ended
About this update from Summit State Bank
[{"type":"text","content":"SANTA ROSA, Calif., July 31, 2024 (GLOBE NEWSWIRE) -- Summit State Bank (the “Bank”) (Nasdaq: SSBI) today reported net income for the second quarter ended June 30, 2024 of $928,000, or $0.14 per diluted share, compared to net income of $2,985,000, or $0.45 per diluted share for the second quarter ended June 30, 2023. “Our second quarter earnings continue to be directly impacted by the high interest rate environment and its impact on funding costs, a challenge that is affecting the entire banking industry,” said Brian Reed, President and CEO. “We are implementing steps to grow net income and remain focused on improving our financial performance. Loan balances decreased modestly during the second quarter related to our efforts to focus on asset quality and pricing versus growth. Our focus is on improving our performance metrics and increasing profitability in each successive quarter. While the possibility of a continued industry-wide higher-for-longer interest rate cycle still exists, we remain optimistic about our future performance.” Second Quarter 2024 Financial Highlights (at or for the three months ended June 30, 2024) Net income was $928,000, or $0.14 per diluted share, compared to $2,985,000, or $0.45 per diluted share, in the second quarter of 2023 and $1,395,000, or $0.21 per diluted share, for the first quarter ended March 31, 2024.The allowance for credit losses to total loans was 1.52% on June 30, 2024 which is based on estimating credit losses for the life of the loans in the portfolio.The Bank maintains strong total liquidity of 479,202,000, or 44.3% of total assets as of June 30, 2024. This includes on balance sheet liquidity (cash and equivalents and unpledged available-for-sale securities) of $115,094,000 or 10.6% of total assets, plus available borrowing capacity of $364,108,000 or 33.6% of total assets.The Bank remains well-capitalized and all regulatory capital ratios were well above minimum requirements on June 30, 2024.Net loans decreased $11,292,000 to $913,514,000 at June 30, 2024, compared to $924,806,000 one year earlier and decreased $4,171,000 compared to $917,685,000 three months earlier.Total deposits decreased 8% to $966,587,000 at June 30, 2024, compared to $1,048,316,000 at June 30, 2023, and increased 3% when compared to the prior quarter end of $939,202,000.Book value was $14.44 per share, compar...