SANTA ROSA, Calif., April 27, 2020 (GLOBE NEWSWIRE) — Summit State Bank (Nasdaq: SSBI) today reported net income for the quarter ended March 31, 2020 of $2,415,000 and diluted earnings per share of $0.40.  A quarterly dividend of $0.12 per share was declared for common shareholders.
DividendThe Board of Directors declared a $0.12 per share quarterly dividend on April 27, 2020 to be paid on May 22, 2020 to shareholders of record on May 15, 2020.Net Income and Results of OperationsFor the quarter ended March 31, 2020, Summit State Bank (“Bank”) had net income of $2,415,000 and diluted earnings per share of $0.40 compared to $1,425,000 in net income and $0.23 diluted earnings per share for the same quarter in 2019.Net income increased $990,000 or 69% the first quarter of 2020 compared to first quarter of 2019. Net interest income increased to $6,525,000 in the first quarter of 2020 compared to $5,547,000 in the first quarter of 2019.“Summit spent the past three years implementing a strategic plan to restructure and grow the Bank’s balance sheet and earnings,” said Brian Reed, President and CEO. “We saw the Bank’s performance successfully shift in this direction in the second half of 2019 and continue growing into the first quarter of 2020.”“With the recent impact to the economy caused by the COVID-19 pandemic, the Bank is aware that making changes to our operations and how we support our customers is imperative,” said Reed. “We are headed into a new era and although we do not know how the market will react in the medium to longer term, the Bank is planning for change. We will remain flexible and support our customers as we respond to these changing economic conditions.”                Non-interest income increased in the first quarter of 2020 to $1,929,000 compared to $493,000 in the first quarter of 2019. The Bank recognized $871,000 in gain from called securities and $697,000 in gains on sales of SBA guaranteed loan balances in the first quarter of 2020 compared to $167,000 in gains on sales of SBA guaranteed loans balances in the first quarter of 2019.Reed notes that “due to the decreasing rate environment, several investment bonds originally purchased at a discount were called in the first quarter of 2020.”Total loans and deposits also increased when comparing the first quarter of 2020 to first quarter of 2019; loans were $601,400,000 in 2020 compared to $509,989,000 in 2019 and deposits were $574,006,000 in 2020 compared to $555,255,000 in 2019. The net interest margin increased to 3.88% for the first quarter of 2020 compared to 3.65% for the first quarter of 2019.Annualized return on average assets for the first quarter of 2020 was 1.41%, annualized return on average equity was 14.13% and the efficiency ratio was 58.31% during the first quarter of 2020. The first quarter of 2019 had an annualized return on average assets of 0.92%, annualized return on average equity of 9.26% and efficiency ratio of 69.74%.There was a $210,000 or 5% increase in operating expenses in the first quarter of 2020 compared to the first quarter of 2019. The increase in expenses is primarily due to an increase in employee expenses and occupancy costs.Nonperforming assets were $472,000 or 0.07% of total assets at March 31, 2020 compared to $736,000 or 0.12% at March 31, 2019. The nonperforming assets at March 31, 2020, consist of loans which are predominantly secured by real property. The Bank had provision expense of $600,000 in the first quarter of 2020. The allowance for loan losses to loans was 1.21% at March 31, 2020 and was 1.19% at March 31, 2019.About Summit State BankSummit State Bank, a local community bank, has total assets of $722 million and total equity of $68 million at March 31, 2020. Headquartered in Sonoma County, the Bank specializes in providing exceptional customer service and customized financial solutions to aid in the success of local small businesses and nonprofits throughout Sonoma County. Summit State Bank is committed to embracing the diverse backgrounds, cultures and talents of its employees to create high performance and support the evolving needs of its customers and community it serves. At the center of diversity is inclusion, collaboration, and a shared vision for delivering superior service and results for shareholders. Presently, 75% of management are women and minorities with 60% represented on the Executive Management Team. Through the engagement of its team, Summit State Bank has received many esteemed awards including: Best Business Bank, Corporate Philanthropy Award and Best Places to Work in the North Bay.  Summit State Bank’s stock is traded on the Nasdaq Global Market under the symbol SSBI. Further information can be found at www.summitstatebank.com.Forward-looking StatementsExcept for historical information contained herein, the statements contained in this news release, are forward-looking statements within the meaning of the “safe harbor” provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended.  This release may contain forward-looking statements that are subject to risks and uncertainties. Such risks and uncertainties may include but are not necessarily limited to fluctuations in interest rates, inflation, government regulations and general economic conditions, and competition within the business areas in which the Bank will be conducting its operations, including the real estate market in California and other factors beyond the Bank’s control.  Such risks and uncertainties could cause results for subsequent interim periods or for the entire year to differ materially from those indicated.  You should not place undue reliance on the forward-looking statements, which reflect management’s view only as of the date hereof.  The Bank undertakes no obligation to publicly revise these forward-looking statements to reflect subsequent events or circumstances.Contact: Brian Reed, President and CEO, Summit State Bank (707) 568-4908 
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