Summit State Bank · NASDAQ:SSBI

Summit State Bank — Q3 2025 Earnings Presentation

35 slides from Summit State Bank's earnings presentation, 2025

  1. Slide 1: Investor Presentation Q3 2025

    Investor Presentation Q3 2025

  2. Slide 2: About

    About Brian J. Reed, President & CEO Brian has over 40 years of community banking experience, with over 30 in Sonoma County. 2020 - Selected as President and CEO of Summit State Bank 2016 - Joined Summit State Bank as Chief Credit Officer 2006 – Served as EVP Chief Credit Officer of First Community

  3. Slide 3: Core Values

    Core Values Mission Statement Summit State Bank provides 1. Greet customers, colleagues and community with courtesy and enthusiasm customized credit and deposit 2. Treat everyone you encounter with respect – they are important services by partnering with 3. Offer your service and solutions, look for

  4. Slide 4: Guiding Principles

    Guiding Principles “ To be a successful community bank, we must be significant in the lives of those we touch - our employees, customers and community. Significance is the legacy that is left behind long after a leader leaves an organization. Their influences on values, attitudes and culture will en

  5. Slide 5: Company Overview

    Company Overview • Commercial Bank, headquartered in Santa Rosa, CA • $1 billion in assets • 4 branch locations • 105 employees • Founded in 1982 • Listed on NASDAQ in 2006 under the ticker “SSBI” Summit State Bank Locations • Santa Rosa Main, Headquarters • Healdsburg • Rohnert Park • Petaluma Regi

  6. Slide 6: Executive Leadership

    Executive Leadership Genie Del Secco, Camille Kazarian, Michael Floyd, Brandy Seppi EVP and EVP and EVP and EVP and Chief Operating Officer Chief Financial Officer Chief Credit Officer Chief Banking Officer Genie has 35 years of community Camille has 26 years of industry Michael has over 40 years of

  7. Slide 7: 40 years and $1 Billion in Assets

    40 years and $1 Billion in Assets 2022 $1B Assets and 40th Anniversary 2020 2017 $135MM PPP Loans 2016 Brand Refresh 500MM in Assets 2006 Reached Listed on NASDAQ 2009 Healdsburg Branch 2007 1982 2003 Petaluma Branch Opens Bicentennial Branch Opens Bank Opened 1990 Opens 1985 Windsor Branch Montgome

  8. Slide 8: Competitive Advantages and Challenges

    Competitive Advantages and Challenges What Makes Summit State Bank Unique? What sets us apart from our competitors is our ability to deliver personalized solutions and service with excellent customer service along with providing access to local decision-makers. We strive to develop long-term relatio

  9. Slide 9: Making a Difference

    Making a Difference Nonprofit Partner Program Results Since 2009, Summit has contributed more than $6.5 million to Sonoma County nonprofits through the Nonprofit Partner Program and donations.

  10. Slide 10: Nonprofit Partner Program and North Bay Nonprofit Event

    • Enhanced the Nonprofit Partner Program with the launch of our North Bay Nonprofit Event (NBNE). • This half-day gathering attracted nearly 100 nonprofit leaders in 2025, and features local experts who share valuable insights, resources, and best practices. • Designed to deepen relationships with e

  11. Slide 11: Awards & Accolades

    Awards & Accolades Best Places to Work - Hall of Fame NorthBay Biz Magazine Corporate Philanthropy Award San Francisco Business Times Best Places to Work North Bay Business Journal Diversity in Business North Bay Business Journal Top Performing Bank American Banker Raymond James Award

  12. Slide 12: Market Area Highlights

    Northern California Concentrated in Sonoma County Market Area Highlights  Commercial Property Investment Inventory Remains Low due to limited construction over the past ten years.  Diverse and Resilient Economy:  Healthcare, Manufacturing, Construction and Wholesale Trade Comprise > 40% of the Co

  13. Slide 13: Financial Trends

    2020 - 2022: Financial Trends  Strong growth from continued low and stable rate environment resulting in robust loan production and healthy NIM, and strong non- interest income. 2023:  Fed raised rates 5.00% between Mar 2022 - July 2023.  Rapid and sustained rate increases compressed NIM and slow

  14. Slide 14: Drivers of Performance

    Drivers of Performance  Credit Quality  Net Interest Margin and Net Interest Income  Non-Interest Income  Expense Management

  15. Slide 15: Loan Growth & Asset Quality

    Loan Growth & Asset Quality  2024 and YTD 2025 Loan production slowed due to focusing on quality and appropriate rate in an uncertain economic environment  Reduction of loans reflects the Banks increased focus on reducing balance sheet risk while improving capital ratios  Strong Reserves at 1.65%

  16. Slide 16: Non-Performing Loans and Loan Loss Reserve

    Non-Performing Loans and Loan Loss Reserve Non-Performing Loans:  3 relationships make up 96% of non- performing loans as of Q3 2025  Strong Reserves continue to be maintained at 1.65% despite Non- Performing loan balances reducing since YE2023 Note: CECL Conversion as of January 1, 2021

  17. Slide 17: Portfolio Delinquency Trends

    Portfolio Delinquency Trends Delinquency Trends:  Delinquency metrics of the performing portfolio have been declining in recent periods *excludes Non-Accrual loans

  18. Slide 18: Interest Income & Interest Expense Management

    Interest Income & Interest Expense Management  From the end of 2022 through mid-2024, NIM compression and Net Interest Income declined due to elevated cost of funds, lower volume of new higher priced loans and existing loans that have repriced slower than deposits  Starting in Q3 2024, NIM and Net

  19. Slide 19: Yield on Earning Assets vs Cost of Liabilities

    Yield on Earning Assets vs Cost of Liabilities  From end of 2022 though the mid-2024, Cost of Liabilities has risen faster than the Yield on Earning Assets  Since mid-2024 Cost of Liabilities declined while loan yields have improved

  20. Slide 20: Deposits & Loans Repricing by Maturity

    Deposits & Loans Repricing by Maturity  Majority of Interest-bearing Deposits may reprice within 1 year  Only 26% of the Loan Portfolio contractually reprices within 1 year  Reprices Immediately  Reprices quarterly  Reprices in 1 month to 1 year  Reprices 1 year to 8 years  Fixed Rate

  21. Slide 21: Treasury Indexed CRE – Contracted Rate Resets

    Treasury Indexed CRE – Contracted Rate Resets  Most Treasury Indexed CRE Loans reprice every 5 years based on the corresponding Constant Maturity Treasury index  Repriced rates reflect a snapshot of market rates as of 9/30/2025; Actual repricing rates can differ depending on market rates at the ti

  22. Slide 22: Government Guaranteed Loan Programs

    Government Guaranteed Loan Programs  Dedicated Small Business Lending Group Created in 2017  Floating Rate ~ 9.1% (October 2025 adjustment)  Decrease in Non-Interest Income based on rolling 4-quarter analysis:  Lower SBA Loan Sales Volume  Decreasing Servicing income due to amortization and pre

  23. Slide 23: Managing Infrastructure Costs in an Inflationary Environment

    Managing Infrastructure Costs in an Inflationary Environment  Operating expenses in Q3 2024 were higher at $6.2MM vs $5.5MM is Q3 2025, despite continuing inflationary pressures  Cost cutting efforts employed in Q4 2024 are impacting the reduction in the operational expenses in 2025  Assets have

  24. Slide 24: Assets Trends

    Assets Trends  Manage Asset reductions to balance sheet risk and improve Capital Ratios  Portfolio Loan Yield as of 2025Q3 at 6.05%  $403MM of Treasury based loans are scheduled to reprice through 2027 at a differential of ~2%  New loan originations are targeted to reduce overall CRE concentrati

  25. Slide 25: Loan Portfolio Composition

    Loan Portfolio Composition Portfolio Product Types, % Commercial Real Estate - Invest ▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬● 50.2% Commercial Real Estate - Owner Occupied ▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬● 25.4% Total Farm ▬▬▬▬▬▬▬● 7.5% Loan Commercial C&I ▬▬▬▬▬▬● 6.5% Diversified Portfolio wit

  26. Slide 26: Loan Composition

    Loan Composition Total Loan Portfolio CRE Loan Portfolio Concentration: Investment & Owner Occupied

  27. Slide 27: Liabilities Trends

    Liabilities Trends  Deposit growth from 2020 to 3Q2025:  Local Non-Maturity Deposits increased from 64% to 72% of Total Deposits  Total Local Deposits increased from 80% to 100% of Total Deposits  Continued Focus on Local Non-Maturity core deposit growth

  28. Slide 28: Deposit Composition

    Deposit Composition  Organic Deposit Growth through Strong Relationship Practices  Focused Local Core Deposit Growth  Q3 2025 Average Cost of Deposits at 2.40%

  29. Slide 29: Focus on Liquidity and Quality as of Q3 2025

    Focus on Liquidity and Quality as of Q3 2025  $125MM of Available Primary Liquidity  Includes Cash and Investments Available for Sale  Primary Liquidity is 12.4%  $321MM of Available Secondary Lines  Includes FHLB, Federal Reserve Bank, and Fed Funds lines  Total Liquidity (Primary + Secondary

  30. Slide 30: Tangible Book Value Growth

    Tangible Book Value Growth  Tangible Book Value has improved 39% since 2020, or 8.1% annualized growth  Tangible Book Value growth has solely been driven by retention of earnings  As of September 30, 2025, the Bank’s stock price was trading at 0.8x of Book Value ($11.79/share) Note: [1]Tangible B

  31. Slide 31: Shareholder Value

    Shareholder Value Graph illustrates investment in 1 share of stock beginning in 2016  2016: One share of stock purchased  2017: A five-for-four stock split results in 1.25 shares outstanding  2021: A one time 10% stock dividend results in 1.38 shares outstanding  Stock Value increased 19% since

  32. Slide 32: Why Summit State Bank?

    Why Summit State Bank?  Experienced Executive & Management Team  Commitment to a Culture of Success  Focus on Organic Growth and Driving Core Customer Deposits  Lending Platform Positioned to Deliver Results  Significant Growth in Tangible Book Value of shares in last 5 years  Experienced and

  33. Slide 33: 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

  34. Slide 34: Non-GAAP Financial Measures

    Non-GAAP Financial Measures This presentation contains non-GAAP (Generally Accepted Accounting Principles) financial measures in addition to the results presented in accordance with GAAP. These Non-GAAP financial measures include pre-tax, pre-provision net operating income before goodwill, pre-tax,

  35. Slide 35: Non-GAAP Financial Measures

    Non-GAAP Financial Measures Nine Months Ended Twelve Months Ended September 30, 2025 December 31, 2024 December 31, 2023 December 31, 2022 December 31, 2021 December 31, 2020 (In thousands) Reconciliation of non-GAAP tangible common equity Total shareholders' equity $ 99,728 $ 91,723 $ 97,678 $ 88,5

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