Summit State Bank · NASDAQ:SSBI
Summit State Bank — Q3 2024 Earnings Presentation
19 slides from Summit State Bank's earnings presentation, Dec 6, 2024
Slide 1: Form 8-K Current Report
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): December 6, 2024 Summit State Bank (Exact Name of Registrant as Specified in Charter) California
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 available online beginning December 6, 2024 using the slide presentation included as Exhibit 99.1 of this report. The information in this report (incl
Slide 3: Exhibits and Signature
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: Exhibit Index
Exhibit Index Exhibit Description Number 99.1 Presentation slides as of December 6, 2024 4
Slide 5: 99.1 Presentation slides as of December 6, 2024
99.1 Presentation slides as of December 6, 2024 5
Slide 6: Summit State Bank Locations
Summit State Bank Locations Headquartered in Santa Rosa, CA Branch Locations * Santa Rosa Main Healdsburg Santa Rosa Montgomery Village Rohnert Park Petaluma Regional Small Business Lending Group * HQin Roseville, CA AN SUMMIT AN SUMMIT STATE BANK Member FD Market Area Highlights Unemployment Northe
Slide 7: Leadership Team; Loan Growth & Asset Quality
Leadership Team 2019¥E sm Loan Grout (YoW) AN SUMMIT fe 165 Years of Collective Experience Loan Growth & Asset Quality 10 soo 20 10 a0 i me son miwe mae amass (can Gronth Ex PPP Not) mMNPA 26 of Loane (Raha Note: CECL Conversion as of January 1,202 2024 Loan growth has slowed due to focus on quality
Slide 8: Non-Performing Loans and Loan Loss Reserve
7 / “ Non-Performing Loans and Loan Loss Reserve Non-Performing Loan: $20,000 200% = 4specific relationships make up 96% $20,000 130% of non-performing assets as of Q3 $30,000 ta 2024 smo 170% tonnes tens = $3.7MM of specific reserves set aside som ane for all Non-Performing loans $0900 140% 30000 1
Slide 9: Portfolio Delinquency Trends; Interest Income Management
Portfolio Delinquency Trends Portfolio Delinquency Trend (%) (excludes non-performing loans) aoe 6% om O38 osx id 000s 0.0% o_O _ cm I < | | | | | i oo - —_ — = amoge 2010127302 202103 20104 30D2OL—_ OIG? 20D oot tama 200302 207303 mmMIaA OMA NMA IMME ss0rnaysDa. meDHDAYSDO MIOSSDNSDQTot@lDa Delinqu
Slide 10: Yield on Earning Assets vs Cost of Liabilities
Yield on Earning Assets vs Cost of Liabilities Yield on Earning Assets (%) and Cost of Liabilities (4) = Cost of Liabilities has risen aus faster than the Yield on Earning Assets .“ = Cost of Liabilities has been 1.008 stabilizing in the past two "1 heeeeoeeel eS me Cost of Liabilties mevield on Car
Slide 11: Treasury Indexed CRE - Contracted Rate Resets
Treasury Indexed CRE - Contracted Rate Resets Treasury Indexed CRE - Contracted Rate Resets 2025 Total 2026 Total Rate Reset Year 2027 Total 2a2aTatat wm Belance -= == Curert WAIR Pepriced WAI Note Loan Balance does not reflect potential fer loan defaults, refinancing activities or prepayments. This
Slide 12: Managing Infrastructure Costs in an Inflationary Environment
Managing Infrastructure Costs in an Inflationary Environment Expenses as a % of Assets roe Expenses as a % of Total Assets has seen modest increases since the Pandemic Increase in 3Q 2024 partially driven by reduction in Total Assets Operating expenses in Q3 2024 were $6.2MM vs $6.9MM is Q3 2023 Cos
Slide 13: Net Operating Income
Net Operating Income Net Income ($000) and Return on Average Assets(%6) (pre provision, pre tax) ch sme Net income (pre provision, pretax) return on Aug Assets (pte prowsion, pre ta} Net Operating Income = Net Income before loss provision and taxes = Net Operating Income has started to improve due t
Slide 14: Loan Portfolio Composition
Loan Portfolio Composition Portfolio Product Types, % ‘Commercial Real Estate-Invest Commercial Real Estate -Owner Occupied Total — Loan Commercial C& Portfolio Real Estate-sFR ‘Multi-Family Real Estate Construction & Land other Consumer & Lease Financing Real Estate % ‘allother 3 22.8% Industrial /
Slide 15: Liabilities Trends and Deposit Composition
AS SUMMIT Brokered & FHLB Advances Local Maturity Deposits Liabilities Trends Local Deposits and Brokered & FHLB Advances (00's) 2019VE 2o20vE aoe 2020 20238 20242 1 Local Non-Maturity Deposits a Continued Focus on Managing Local Non-Maturity Deposit Growth to match Loan Growth 3Q2024 Average Cost o
Slide 16: Focus on Liquidity and Quality as of Q3 2024
/ Focus on Liquidity and Quality as of Q3 2024 “+ 148MM of Available Primary Liquidity = Including Cash and Investments Available for Sale = Primary Liquidity is 13% + $360MM of Available Secondary Lines = Including FHLB, Federal Reserve Bank, and Fed Funds lines = Total Liquidity (Primary + Seconda
Slide 17: Investor Stock Value
Investor Stock Value Graph illustrates investment in 1 share of stock beginning in 2016 Investmentin 1 share since 2016 as of: 202403 = 2016: One share of stock purchased ‘4 = 2017: A five-for-four stock split 12 results in 1.25 shares outstanding = 2021: A one time 10% stock dividend és Ps results
Slide 18: Awards and Accolades; Why Summit State Bank?
Awards and Accolades Best Places to Work ip North Bay Business Journal \ Corporate Philanthropy Award \I SF Business Times Hall of Fame y I North Bay biz magazine \/ Diversity in Business “4 AN SUMMIT Why Summit State Bank? * Experienced Executive & Management Team * Commitment to a Culture of Succe
Slide 19: 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