Summit State Bank · NASDAQ:SSBI
Summit State Bank — Q2 2023 Earnings Presentation
16 slides from Summit State Bank's earnings presentation, Aug 23, 2023
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): August 23, 2023 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 August 23, 2023 using the slide presentation included as Exhibit 99.1 of this report. The information in this report (inclu
Slide 3: Forward-looking statements continued; Item 9.01 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: August 23, 2023 SUMMIT STATE BANK By: /s/__Camille Kazarian____ Camille Kazarian Executive Vice Pr
Slide 5: Exhibit Index
Exhibit Index Exhibit Description Number 99.1 Presentation slides as of August 23, 2023 5
Slide 6: Investor Presentation Q2 2023 - Company Overview
99.1 Presentation slides as of August 23, 2023 Investor Presentation Q2 2023 1 Company Overview Summit State Bank is a commercial bank headquartered in Santa Rosa, CA with $1.2 billion in assets, 5 branch locations and more than 118 employees Bank formed in 1982 Listed on NASDAQ in 2006 under
Slide 7: Summit State Bank Locations and Market Area Highlights
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 HQ in Roseville, CA 3 Market Area Highlights Northern California Concentrated in Sonoma County
Slide 8: Our Leadership Team and Financial Trends
Our Leadership Team Brian Reed Genie Del Secco Brandy Seppi Camille Kazarian Michael Castlio President & CEO EVP & Chief Operating Officer EVP & Chief Lending Officer EVP & Chief Financial Officer SVP & Chief Credit Officer 38 Years in the Industry 32 Years in the Industry 28 Years in the Industry 2
Slide 9: Loan Growth & Asset Quality; Interest Income & Expense Management
Loan Growth & Asset Quality Loan Growth has declined from prior periods due to higher rates Strong Reserves (Allowance for Loans & Lease Losses – ACL) ACL is 1.63% without PPP Loans, which Carry a Zero -Risk Weighting and excluding unsold guaranteed portion of SBA loans Elevated Non -Perform
Slide 10: Building the Infrastructure to Deliver Results; Assets Trends
Building the Infrastructure to Deliver Results Efficiency Ratio increased due to lower Net Operating Income as discussed on previous slide Historical Improvements in Efficiency Ratio driven by Net Operating Income increases Continually Reviewing Technology for Enhancements 9 Assets Trends Fo
Slide 11: Loan Composition and SBA Loan Program
Loan Composition CRE Loan Portfolio Concentration: Total Loan Portfolio Investment & Owner Occupied Diversified Portfolio with Manageable Risk Total Portfolio LTV 47% (ex C&I); CRE LTV 46.2% CRE LTV 49% for Property Types with Higher Risk Pandemic Risks: Wineries, Hotels, Restaurants, and Re
Slide 12: Liabilities Trends and Deposit Composition
Liabilities Trends Continued Focus on Local Deposit Growth and Increasing Market Share 2Q2023 Average Cost of Funds at 2.01% Deposit growth from 2018 to 2Q2023: Local Non -Maturity Deposits went from 57% to 61% of Total Deposits Total Local Deposits went from 89% to 96% of Total Deposits 1
Slide 13: Focus on Liquidity and Quality; Strong Stock Value
Focus on Liquidity and Quality as of Q2 2023 $189MM of Available Liquidity Including Cash and Investments Available for Sale Primary Liquidity is 16% $351MM of Off -Balance Sheet Liquidity Sources Including FHLB, Federal Reserve Bank, and Fed Funds lines Secondary Liquidity is 30% $230
Slide 14: Strong Dividend Return; Stock Total Return vs Bank Indices
Strong Dividend Return Graph illustrates investment in 1 share of stock beginning in 2016 Dividend on Initial Investment relates to the original purchase of 1 share Additional Dividend Return of 37.5% is a result of: 5-for -4 stock split (2017) one time 10% stock dividend (2021) 17 Stock Tot
Slide 15: Why Summit State Bank? Awards and Accolades
Why Summit State Bank? Experienced Executive & Management Team Commitment to a Culture of Success Focused on Organic Growth Strategic Lending Platform Positioned to Deliver Results California Peer Group Leader in Key Performance Metrics Strong Total Return to Shareholders Compared to Ind
Slide 16: Private Securities Litigation Reform Act of 1995; Contact
Private Securities Litigation Reform Act of 1995 Statements made during this presentation and in response to questions may constitute Forward Looking Statements within the meaning of the Private Securities Litigation Reform Act of 1995 and any such statements are subject to risks and uncertainties t