Summit State Bank · NASDAQ:SSBI
Summit State Bank — Shareholder Meeting (May 2024)
17 slides from Summit State Bank's shareholder meeting presentation, May 20, 2024
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): May 20, 2024 Summit State Bank (Exact Name of Registrant as Specified in Charter) California 322
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 a presentation to institutional investors at the annual meeting on May 20, 2024 using the slide presentation included as Exhibit 99.1 of this report. The information in this report (including
Slide 3: Item 9.01 Financial Statements and Exhibits
Item 9.01. Financial Statements and Exhibits (d) Exhibits: The exhibit list called for by this item is incorporated by reference to the Exhibit Index filed as part of this report. 3
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: May 8, 2024 SUMMIT STATE BANK By: /s/__Camille Kazarian____ Camille Kazarian Executive Vice Presid
Slide 5: Exhibit Index
Exhibit Index Exhibit Description Number 99.1 Presentation slides dated May 20, 2024 5
Slide 6: 99.1 Presentation slides dated May 20, 2024
99.1 Presentation slides dated May 20, 2024 6
Slide 7: Summit State Bank overview and market area highlights
A SUMMIT Summit State Bank-naspaa: ssBi Headquartered in Santa Rosa, CA Branch Locations = Santa Rosa Main Healdsburg Santa Rosa Montgomery Village Rohnert Park Petaluma Regional Small Business Lending Group = Roseville, CA AN SUMMIT 3 Market Area Highlights Unemployment Northern California Concentr
Slide 8: Our Leadership Team and Financial Trends
Our Leadership Team in the Indi 165 Years of Collective Experience Financial Trends = Rate increases combined with our anon, am strategy to increase liquidity have put 15,000 1.60% downward pressure on Net Interest 14,000 1.40% Margin ultimately resulting in reduced one aan Return on Average Assets
Slide 9: Loan Growth & Asset Quality
/ ‘Loan Growth & Asset Quality 0.00% 2O18YE —«-2O1SYE_——«2020YE_—«2ORIVE—«2022VE_—=—2023VE. mam Loan Growth (YoY) Loan Grow A SUMMIT Note: CECL Conversi th ExPPP oY) emmmNPA as a % of Loans (Right axis) lon as of January 1, 2021 Loan Growth has declined from prior periods due to elevated risk in the
Slide 10: Interest Income & Interest Expense Management
Interest Income & Interest Expense Management Net Interest Margin (%) and Net Interest Income ($000) $45,000 5.00% som “8 “= NIM compression and Net $35,000 — Interest Income decline observed ees 3.50% due to planned deposit growth, 3.0% increased interest rates $25,000 250% $20,000 ma * NIM and Net
Slide 11: Expenses and Asset Trends
2ousve AN SUMMIT Maintaining the Infrastructure to Deliver Results Expenses as a % of Assets = Expenses as a % of Total Assets has seen modest increases since the Pandemic due to inflationary pressures = Expenses are managed and reflects maintaining origination infrastructure 20196 2orove 2o2¥E ronz
Slide 12: Loan Composition and SBA Loan Program
Loan Composition Total Loan Portfolio AX SUMMIT Post Pandemic Risks: Office at 12% of Total Portfolio (LTV 52%) Diversified Portfolio with Manageable Risk Total Portfolio LTV 46% (ex C&l); CRE LTV 47% CRE Loan Portfolio Concentration: Investment & Owner Occupied rt bg = Hotel 15% Restourants ‘nda /
Slide 13: Liabilities Trends and Deposit Composition
Liabilities Trends Local Deposits and Brokered & FHLB Advances * Continued Focus on Managing ($000's) Local Non-Maturity Deposit $1,200,000 Growth to match Loan Growth $1,000,000 = 4Q2023 Average Cost of Funds at 2.36% $800,000 $600,000 = Deposit growth from 2018 to 4Q2023: eae = Local Non-Maturity
Slide 14: Focus on Liquidity and Quality
Focus on Liquidity and Quality as of QI 2024 * $113MM of Available Primary Liquidity = Including Cash and Investments Available for Sale = Primary Liquidity is 11% * $305MM of Available Secondary Lines = Including FHLB, Federal Reserve Bank, and Fed Funds lines = Total Liquidity (Primary + Secondary
Slide 15: Consistent Dividend Return and Stock Total Return
/ Consistent Dividend Return Dividend Paid on 1 share since 2016 $0.70 saree Graph illustrates investment in 1 share : of stock beginning in 2016 $0.60, sas * Dividend on Initial Investment relates to the original purchase of 1 $0.50 share $0.45 woe we * Additional Dividend Return of 37.5% basi is a
Slide 16: Awards and Why Summit State Bank?
AN. SUMMIT Awards and Accolades “eé Best Placesto Work = \ North Bay Business Journal Best Business Bank \ OZ North Bay biz magazine \ i} / Top Performing Banks \ V/4 ICBA \J Y iP Raymond James Bankers Cup | J | Raymond James . ( Super Premier Performance a) A y Findley Reports Bank & Thrift Sm - Al
Slide 17: Forward-Looking Statements
Forward-Looking Statements This presentation includes forward-looking statements within the meaning of the ‘safe-harbor” provisions of the Private Securities Litigation Reform Act of 1995, including forward-looking statements regarding our expectations and beliefs about our future financial performa