SANTA ROSA, Calif., Oct. 22, 2019 (GLOBE NEWSWIRE) — Summit State Bank (Nasdaq: SSBI) today reported net income for the quarter ended September 30, 2019, of $2,045,000 and diluted earnings per share of $0.34. 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 October 21, 2019 to be paid on November 22, 2019 to shareholders of record on November 15, 2019.Net Income and Results of OperationsFor the quarter ended September 30, 2019, Summit State Bank (“Bank”) had net income of $2,045,000 and diluted earnings per share of $0.34 compared to net income of $1,505,000 and diluted earnings per share of $0.25 for the same quarter in 2018. Net income increased $540,000 or 36% the third quarter of 2019 compared to the third quarter of 2018.A significant portion of the increase in net income is related to non-interest income. In the third quarter of 2019 non-interest income was $1,001,000 compared to $453,000 in the third quarter of 2018. The primary difference between 2019 and 2018 was the Bank sold more SBA loans in third quarter of 2019 generating $639,000 in gain on sale compared $95,000 in gain on sale in the third quarter of 2018. “Although we are selling some loans, we continue to grow assets at a targeted pace while generating income in line with our 2019 target,” said Jim Brush, President and CEO. “The Bank has a good mix of income generators and cost controls to build a strong future for success.”Net interest income increased to $5,773,000 in the third quarter of 2019 compared to $5,512,000 in the third quarter of 2018. This was an increase of $261,000 or 5% from the prior year.Net loans, deposits and total assets also increased when comparing the third quarter of 2019 to third quarter of 2018. Loans increased 15% to $554,122,000 at September 30, 2019 compared to $481,419,000 at September 30, 2018, deposits increased 20% to $605,130,000 at September 30, 2019 compared to $504,052,000 at September 30, 2018, and total assets increased 14% to $680,840,000 at September 30, 2019 compared to $595,243,000 at September 30, 2018.“Each quarter we are experiencing consistent growth in our loan portfolio. This recent quarter we have increased loans outstanding by 15% compared to the same quarter one year ago,” said Brush. “We have spent the past several years investing in our staff and because of this we are growing our assets in line with our long-term strategy. We are deliberately growing our Bank at a controlled pace and this is adding to the Bank’s long-term sustainability for financial success.”“We feel that our headwinds have recently turned into tailwinds and look forward to strong income growth,” said Brush.For the third quarter 2019, the annualized net interest margin was 3.60%, annualized return on average assets was 1.24% and annualized return on average equity was 12.32%. The third quarter of 2018 generated an annualized net interest margin of 3.80%, annualized return on average assets of 1.02% and annualized return on average equity of 9.85%.“The Bank is liability sensitive which provides a great opportunity to capitalize on the recent decrease in deposit rates,” said Brush. “We are reducing our cost of funds and positioning the Bank to maintain its net interest margin compared to a year ago. We are pleased with our increased non-interest income while beginning to hold our non-interest costs.”There was a $205,000, or 5%, decrease in operating expenses between the third quarter of 2019, as compared to the third quarter of 2018. The declining trend is due to the stabilization of expenses in major areas of cost including salary, benefits and other operational expenses.Nonperforming assets were $592,000, or 0.09%, of total assets at September 30, 2019 compared to $2,170,000, or 0.36%, at September 30, 2018. The nonperforming assets at September 30, 2019, consist of loans which are predominantly secured by real property. The Bank had a loan loss provision expense of $210,000 in the third quarter of 2019. The allowance for loan losses to loans was 1.17% at September 30, 2019 compared to 1.20% at September 30, 2018.About Summit State BankSummit State Bank, a local community bank, has total assets of $681 million and total equity of $67 million at September 30, 2019. 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, 80% 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: Jim Brush, President and CEO, Summit State Bank (707) 568-4920
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