Summit State Bank · NASDAQ:SSBI
Summit State Bank — Investor Presentation (November 2019)
15 slides from Summit State Bank's investor presentation, Nov 19, 2019
Slide 1: Form 8-K Current Report - Summit State Bank
FEDERAL DEPOSIT INSURANCE CORPORATION WASHINGTON, DC 20549 FORM 8-K CURRENT REPORT Pursuant to Section 12 or 15(d) of the Securities Exchange Act of 1934 Date of report (Date of earliest event reported): November 19, 2019 Summit State Bank (Exact Name of Registrant as Specified in Charter) Californi
Slide 2: Item 7.01 Regulation FD Disclosure
Item 7.01. Regulation FD Disclosure The Chief Executive Officer of Summit State Bank (the “Bank”) will make presentations to institutional investors at various meetings from November 19, 2019 through January 31, 2020 using the slide presentation included as Exhibit 99.1 of this report. The informati
Slide 3: Item 9.01 Financial Statements and Exhibits
recent Annual Report on Form 10-K filed with the Federal Deposit Insurance Corporation (“FDIC”) and those in any other public filing we may make with the FDIC. Item 9.01. Financial Statements and Exhibits (d) Exhibits: The exhibit list called for by this item is incorporated by reference to the Exhi
Slide 4: Signature
SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized. Dated: November 13, 2019 SUMMIT STATE BANK By: /s/__Camille Kazarian____ Camille Kazarian Executive Vice
Slide 5: Exhibit Index
Exhibit Index Exhibit Description Number 99.1 Presentation slides as of November 13, 2019 5
Slide 6: 99.1 Presentation slides as of November 13, 2019
99.1 Presentation slides as of November 13, 2019 6
Slide 7: Turning Headwinds into Tailwinds
TURNING HEADWINDS INTO TAILWINDS VY Repositioning Balance Sheet ail Increasing Asset Yield Stabilizing Cost of Funds Stabilizing Non-Interest Expenses Maintaining Credit Quality Increasing Non-Interest Income 2R m ®@ fh Creating a Sustainable Culture of Success REPOSITIONING BALANCE SHEET dune 30, 2
Slide 8: Understanding Financial Results from Growth
UNDERSTANDING FINANCIAL RESULTS FROM GROWTH = Hypothetical additional $50 MM growth in one year over peer median = First year - add staff to fuel loan and deposit growth in excess of peers, estimate 1.5% of assets = Year one, growth is even throughout the year, therefore only Y2 of NIM is recognized
Slide 9: Increasing Asset Yield / Stabilizing Cost of Funds
INCREASING ASSET YIELD 5.50% $12,000 5.25% $11,000 5.00% $10,000 $9,000 4.75% $8,000 4.50% $7,000 4.25% | | $6,000 $5,000 4.00% $4,000 3.75% $3,000 a Se & & & SL mmTotal Interest Income Loan Yield —Asset Yield = Repositioning assets tightened difference between Asset Yield and Loan Yield between 2Q1
Slide 10: Loan & Deposit Growth
LOAN & DEPOSIT GROWTH 120.0% $600,000 100.0% $500,000 80.0% $400,000 60.0% $300,000 40.0% $200,000 20.0% $100,000 0.0% $0 cE OSS SC CF EF PC CF EF SF i a a a a °F ££ & mmTti Loans ms Local Deposits —Ttl Loans/Tt! Deposits = Core deposit growth not staying up with loans is a concern = Total loans to
Slide 11: Net Interest Income & Margin
NET INTEREST INCOME & MARGIN 4.20% $6,000 $5,800 4.00% $5,600 3.80% $5,400 $5,200 3.60% $5,000 $4,800 3.40% $4,600 2.20% j il |] $4,400 $4,200 3.00% $4,000 FF SF SF SC CS SF SK £ SF FF SK KF KM ss mm Net Interest Income = Goal is to maintain 3.60% average over time = What is better: incremental grow
Slide 12: Average Assets per FTE / Maintaining Credit Quality
AVERAGE ASSETS PER FTE $9,000 $700,000 $8,500 43,000 $650,000 $7,500 $600,000 $7,000 $6,500 $550,000 $6,000 $5,500 $500,000 $5,000 $450,000 $4,500 $4,000 $400,000 > & & 2 ¢ & & OP & & & s a rom rom rom vr + + + + + * * mm Avg Assets —Avg Assets/FTE = Weare currently near peer median. More projected
Slide 13: Increasing Non-Interest Income
INCREASING NON-INTEREST INCOME 16.00% $1,200 14,00% $1,000 12.00% 10.00% $600 8.00% $600 6.00% 4400 4.00% 2.00% $200 0.00% $0 *s mmTtl Non-Interest Inc —Ttl Non-Interest Inc % to Ttl Inc = Committed to remaining the community bank with low fees and focus on customer service = Increasing gains from S
Slide 14: Return on Average Equity
RETURN ON AVERAGE EQUITY 14.00% $4,000 12.00% $3,500 10.00% $3,000 $2,500 8.00% $2,000 6.00% $1,500 4.00% $1,000 2.00% i $500 0.00% $0 a +] rd a s -s s mm Net Income = Relates directly to ROAA and leverage ratio = ROAA remains steady while leverage ratio decreases in plan * Projects higher than peer
Slide 15: Creating a Sustainable Culture of Success
CREATING A SUSTAINABLE CULTURE OF SUCCESS = Community banking is all about the people = Management and Board of Directors = Communication = Customer Service = Culture = Current environment is challenging = Low unemployment = Interest in banking as a career is waning = Training and education can be d
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