Summit State Bank Reports Record Earnings, a 40% Increase in Net Income to $14,698,000 for 2021 and Declaration of Dividend

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[{"type":"text","content":"SANTA ROSA, Calif., Jan. 25, 2022 (GLOBE NEWSWIRE) -- Summit State Bank (Nasdaq: SSBI) today reported record net income for the year ended December 31, 2021 of $14,698,000 and diluted earnings per share of $2.20. This compares to net income of $10,517,000 and diluted earnings per share of $1.57 for the year ended December 31, 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 January 24, 2022 to be paid on February 17, 2022 to shareholders of record on February 10, 2022. The Bank also issued a 10% stock dividend that was paid on November 4, 2021 to shareholders of record as of the close of business on October 29, 2021. The Bank issued 607,659 shares as a result of the stock dividend, increasing its total shares outstanding to 6,684,759. All prior period average share and earnings per share calculations disclosed in this press release have been retroactively adjusted to account for this stock split. Net Income and Results of Operations For the quarter ended December 31, 2021, the Bank had net income of $3,686,000 and diluted earnings per share of $0.55 compared to $2,929,000 of net income and $0.44 diluted earnings per share, for the same period in 2020, a 26% increase in net income and diluted earnings per share. “The Bank has experienced consistent core earnings growth throughout 2021 and we are pleased to report another year with record earnings,” noted Brian Reed, President and CEO. “The impacts of the pandemic have presented many challenges to our local customers and businesses. Our community’s fortitude and determination has allowed our local economy to persevere through these unprecedented times. Although the future impact of the new COVID variant is unknown, we are pleased to see many businesses continue to stay open and evolve with these changing conditions.” The 2021 net interest margin was 4.28%, return on average assets was 1.64% and return on average equity was 18.48%. In 2020 net interest margin was 3.91%, return on average assets was 1.33% and return on average equity was 14.68%. 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. “In 2...

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