Summit State Bank Reports Second Quarter 2026 Financial Results
SANTA ROSA, Calif., July 28, 2026 (GLOBE NEWSWIRE) -- Summit State Bank (the “Bank”) (Nasdaq: SSBI) today reported a net loss of $1,307,000, or $0.19 loss per diluted share for the second quarter ended June 30, 2026, compared to net income of $2,417,000, or $0.36 per diluted share for the second quarter ended June 30, 2025. Pre-tax, pre-provision income1 was $3,957,000 for the quarter ended June 30, 2026, compared to $3,187,000 for the quarter ended June 30 2025, and $3,320,000 for the quarter ended March 31, 2026. The current quarter's results were impacted by a $5,924,000 provision for credit losses on loans. During the second quarter of 2026, the Bank recognized significant charge-offs and recorded additional provisions for credit losses as part of a comprehensive review of certain higher-risk credits. The result was a reduction of non-performing loans by ~44% compared to the prior quarter. These actions reflect the Board's and management's ongoing efforts to address identified credit risks, and pursue appropriate resolution strategies.
"Our second quarter results reflect deliberate actions to address identified credit risks within the loan portfolio," said Brian Reed, President and Chief Executive Officer. "While pretax, pre-provision income improved meaningfully during the quarter, driven by net interest margin expansion and disciplined expense management, our reported net loss was primarily attributable to the increased provision for credit losses. Throughout the quarter, the Board and management evaluated a range of alternatives for resolving certain problem credits and took decisive actions, including loan sales, to reduce risk and strengthen the balance sheet. Our capital and liquidity positions remain strong, which positions us well to support our customers and communities going forward. We remain confident in the underlying strength of our core business and our long-term strategy.”
Second Quarter 2026 Financial Highlights (at or for the three months ended June 30, 2026)
- Net loss was $1,307,000, or $0.19 loss per diluted share, compared to net income of $2,417,000, or $0.36 per diluted share, for the quarter ended June 30, 2025, and net income of $1,674,000, or $0.25 per diluted share for the quarter ended March 31, 2026.
- Pre-tax, pre-provision income was $3,957,000 for the quarter ended June 30, 2026, compared to $3,187,000 for the quarter ended June 30, 2025, and $3,320,000 for the quarter ended March 31, 2026.
- Net interest margin was 3.95% in the second quarter of 2026 compared to 3.66% in the second quarter of 2025 and 3.77% in the first quarter of 2026.
- Non-performing assets were $20,757,000 at June 30, 2026, compared to $13,762,000 at June 30, 2025, and $35,170,000 at March 31, 2026.
- The Bank’s Tier 1 Leverage ratio increased to 10.84% at June 30, 2026, compared to 9.84% at June 30, 2025, and 10.67% at March 31, 2026.
- Annualized loss on average assets and annualized loss on average equity for the second quarter of 2026 was 0.54% and 5.03%, respectively. This compared to annualized return on average assets and annualized return on average equity for the second quarter of 2025 of 0.93% and 9.98%, respectively.
- The allowance for credit losses to total loans held for investment was 1.69% at June 30, 2026, compared to 1.52% at June 30, 2025, and 1.96% at March 31, 2026.
- The Bank maintained total liquidity of $456,570,000, or 47.6% of total assets as of June 30, 2026. This includes on balance sheet liquidity (cash and equivalents and unpledged available-for-sale securities) of $175,096,000 or 18.2% of total assets, plus available borrowing capacity of $281,474,000 or 29.3% of total assets.
- The Bank has been strategically managing its loan and deposit portfolios to reduce balance sheet risk and improve capital ratios, successfully reducing the overall size of its balance sheet as detailed below:
- Net loans held for investment decreased 12% to $746,099,000 at June 30, 2026, compared to $851,309,000 at June 30, 2025, and decreased 4% compared to $776,109,000 at March 31, 2026.
- Total deposits decreased 8% to $846,129,000 at June 30, 2026, compared to $922,609,000 at June 30, 2025, and decreased 4% when compared to $879,259,000 at March 31, 2026.
- Book value was $14.98 per share at June 30, 2026, compared to $14.49 at June 30, 2025, and $15.16 at March 31, 2026.
Operating Results
The Bank’s net interest margin was 3.95% in the second quarter of 2026 compared to 3.66% in the second quarter of 2025 and 3.77% in the first quarter of 2026. “Our net interest margin expanded 29 basis points during the second quarter, from the year ago quarter, supported by reduced cost of the funding base, the continued repricing of our loan portfolio and the significant reductions of non-performing loans. Offsetting this is the overall reduction in loan balances.
Interest and dividend income decreased 7.6% to $14,067,000 in the second quarter of 2026 compared to $15,230,000 in the second quarter of 2025. The decrease in interest income is attributable to lower loan portfolio volume, which reduced interest and fees on loans by $1,268,000 and lower investment securities holdings, which decreased interest income by $64,000. This was offset by an increase in interest on deposits with banks of $286,000.
Interest expense decreased 21.3% to $4,725,000 in the second quarter of 2026 compared to $6,001,000 in the second quarter of 2025. The cost of deposits also decreased to 2.16% in the second quarter of 2026 compared to 2.51% in the second quarter of 2025. The decrease in interest expense is primarily attributable to a $1,267,000 decrease in interest expense on deposits resulting from lower cost of funds and lower volume of deposits.
Noninterest income increased in the second quarter of 2026 to $924,000 compared to income of $263,000 in the second quarter of 2025. The increase is primarily attributed to the Bank recognizing $308,000 in gains on sales of SBA guaranteed loan balances in the second quarter of 2026 compared to $29,000 in gains on sales of SBA guaranteed loan balances in the second quarter of 2025 and a $331,000 increase in other income related to the accelerated amortization of originated servicing rights for the early payoff on sold SBA loans in the second quarter of 2025.
Operating expenses remained relatively flat in the second quarter of 2026 at $6,309,000 compared to $6,305,000 in the second quarter of 2025. “Improving operational efficiency continues to be a strategic priority across the organization. We remained disciplined in managing our expense base during the quarter, holding expenses relatively flat compared to the year ago quarter. This reflects deliberate, structural choices rather than short-term measures, and importantly, it has been achieved without compromising the quality of service our customers expect. We believe continued expense discipline represents an important measure for driving long-term shareholder value,” said Reed.
Balance Sheet Review
During the second quarter of 2026, the Bank continued to strategically manage its loan and deposit portfolios to reduce balance sheet risk and improve liquidity and capital ratios. As a result, net loans held for investment decreased 12% to $746,099,000, and total deposits decreased 8% to $846,129,000 as of June 30, 2026, compared to June 30, 2025.
Net loans held for investment were $746,099,000 at June 30, 2026, compared to $851,309,000 at June 30, 2025, and decreased 4% compared to March 31, 2026. The Bank’s largest loan types are commercial real estate loans which comprise 79% of the portfolio and loans secured by farmland which make up 7% of the loan portfolio. Of the commercial real estate total, approximately 33% or $199,556,000 are owner occupied, and the remaining 67% or $402,072,000 are non-owner occupied. The Bank’s entire loan portfolio is well diversified between industries and product type. Office space loans total $142,317,000, representing 19% of the total loan portfolio, of which $59,999,000 or 42% are owner occupied and $82,318,000 or 58% are non-owner occupied.
Total deposits were $846,129,000 at June 30, 2026, compared to $922,609,000 at June 30, 2025, and decreased 4% compared to the prior quarter end. At June 30, 2026, noninterest bearing demand deposit accounts decreased 4% compared to a year ago and represented 22% of total deposits; savings, NOW and money market accounts remained relatively flat compared to a year ago and represented 53% of total deposits, and CDs decreased 25% compared to a year ago and comprised 25% of total deposits.
Shareholders’ equity was $101,357,000 at June 30, 2026 compared to $98,108,000 at June 30, 2025, and $102,661,000 at March 31, 2026. The increase in shareholders’ equity compared to a year ago was primarily due to higher retained earnings and a $797,000 decrease in accumulated other comprehensive loss. The decrease in shareholders’ equity compared to three months earlier was primarily due to reduction in retained earnings. At June 30, 2026, book value was $14.98 per share, compared to $15.16 three months earlier, and $14.49 at June 30, 2025.
The Bank’s Tier 1 Leverage ratio continues to exceed the minimum of 5% necessary to be categorized as “well-capitalized” for regulatory capital purposes. The Tier-1 leverage ratio for the second quarter of 2026 was 10.84%, an increase compared to 9.84% for the second quarter of 2025.
Credit Quality
Non-performing assets were $20,757,000, or 2.16% of total assets, at June 30, 2026. This compared to $35,170,000 in non-performing assets at March 31, 2026, and $13,762,000 in non-performing assets at June 30, 2025. The decrease from the prior quarter was due to a sale of four notes on one relationship totaling $9,031,000 and the partial charge-off of $5,087,000 on one relationship. Non-performing assets include $2,294,000 for one other real estate owned property at June 30, 2026, and March 31, 2026, compared to $4,437,000 for one other real estate owned property at June 30, 2025.
“Credit quality metrics for the second quarter are concentrated in several large relationships, rather than broad-based deterioration across the portfolio. Of the non-performing portfolio, 88% are current based on contractual payment status, although these loans remained classified as non-performing based on management’s’ credit assessment as of quarter-end. We are actively managing these credits, and the rest of the loan portfolio is performing without significant issues outside of these isolated situations. Past due loans stood at 0.13% of total loans at June 30, 2026, compared to no past due loans at June 30, 2025,” said Reed.
There was $8,655,000 in net charge-offs during the three months ended June 30, 2026, compared to no net charge-offs during the three months ended March 31, 2026 and $492,000 in net charge-offs during the three months ended June 30, 2025.
For the second quarter of 2026, the Bank recorded a provision for credit loss on loans held for investment of $5,924,000, a $20,000 reversal of credit losses for unfunded loan commitments and a $2,000 reversal of credit losses on investments. This compared to no provision for credit losses on loans, a $55,000 reversal of credit losses on unfunded loan commitments and no provision for credit losses on investments in the second quarter of 2025.
The allowance for credit losses to total loans held for investment was 1.69% on June 30, 2026, compared to 1.96% on March 31, 2026, and 1.52% on June 30, 2025. The reserves are changing based on levels of non-performing loans and the portfolio size in general. The decrease from March 31, 2026 to June 30, 2026 is attributable to a significant reduction in non-performing loans and reduced overall risk in the portfolio. The decrease is due to $8,655,000 in loan charge-offs offset by a provision for credit losses on loans of $5,924,000, a $20,000 reversal of credit losses on unfunded loan commitments and $2,000 reversal of credit losses on investments.
About Summit State Bank
Founded in 1982 and headquartered in Sonoma County, Summit State Bank is an award-winning community bank serving the North Bay. The Bank serves small businesses, nonprofits, and the community, with total assets of $960 million and total equity of $101 million as of June 30, 2026. The Bank has built its reputation over the past 40 years by specializing in providing exceptional customer service and customized financial solutions to aid in the success of its customers.
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 the community it serves. Through the engagement of its team, Summit State Bank has received many esteemed awards including: Top Performing Community Bank by American Banker, Best Places to Work in the North Bay and Diversity in Business by North Bay Business Journal, Corporate Philanthropy Award by the San Francisco Business Times, and Hall of Fame by North Bay Biz Magazine. 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.
Cautionary Note Regarding Preliminary Financial Results and Forward-looking Statements
The financial results in this release are preliminary and unaudited. Final financial results and other disclosures will be reported in Summit State Bank’s quarterly report on Form 10-Q for the period ended June 30, 2026, and may differ materially from the results and disclosures in this release due to, among other things, the completion of final review procedures, the occurrence of subsequent events or the discovery of additional information.
Except for historical information, the statements contained in this 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. Forward-looking statements are non-historical statements regarding management’s expectations and beliefs about the Bank’s future financial performance and financial condition and trends in its business and markets. Words such as “expects,” “anticipates,” “believes,” “estimates” and similar expressions or future or conditional verbs such as “will,” “should,” “would” and “could” are intended to identify such forward-looking statements. Examples of forward-looking statements include but are not limited to statements regarding future operating results, operating improvements, loans sales and resolutions, cost savings, insurance recoveries, and dividends. The forward-looking statements in this release are based on current information and on assumptions about future events and circumstances that are subject to a number of risks and uncertainties that are often difficult to predict and beyond the Bank’s control. As a result of those risks and uncertainties, the Bank’s actual future results and outcomes could differ, possibly materially, from those expressed in or implied by the forward-looking statements contained in this release. Those risks and uncertainties include, but are not limited to, the risk of incurring credit losses; the quality and quantity of deposits; the market for deposits, adverse developments in the financial services industry and any related impact on depositor behavior or investor sentiment; risks related to the sufficiency of the Bank’s liquidity; fluctuations in interest rates; governmental regulation and supervision; the risk that the Bank will not maintain growth at historic rates or at all; general economic conditions, either nationally or locally in the areas in which the Bank conducts its business; the impacts of conflict in the Middle East on the national and local economy; risks associated with changes in interest rates, which could adversely affect future operating results; the risk that some or all of the loans under contract for sale may not be sold as or when expected; the risk that customers or counterparties may not perform in accordance with the terms of credit documents or other agreements due to a decline in credit worthiness, business conditions or other reasons; adverse conditions in real estate markets; and the inherent uncertainty of expectations regarding litigation, insurance claims and the performance or resolution of loans. Additional information regarding these and other risks and uncertainties to which the Bank’s business and future financial performance are subject is contained in the Bank’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025 and other documents the Bank files with the FDIC from time to time. Readers should not place undue reliance on the forward-looking statements, which reflect management’s views only as of the date of this release. The Bank undertakes no obligation to publicly revise these forward-looking statements to reflect subsequent events or circumstances.
1 Non-GAAP Financial Measures
This release contains a non-GAAP (Generally Accepted Accounting Principles) financial measure in addition to the results presented in accordance with GAAP. The non-GAAP financial measure is pre-tax, pre-provision income. We believe the presentation of this non-GAAP financial measure provides useful information to assess our consolidated financial condition and consolidated results of operations and to assist investors in evaluating our financial results relative to our historical results and those of our peers.
Not all companies use identical calculations or the same definitions of pre-tax, pre-provision income, so the presentation of this non-GAAP financial measure may not be comparable to other similarly titled measures used by other companies. This non-GAAP financial measure has inherent limitations, is not required to be uniformly applied, and is not audited. This non-GAAP financial measure should be taken together with the corresponding GAAP measure and should not be considered a substitute for the GAAP measure. A reconciliation of the most directly comparable GAAP measure to this non-GAAP financial measure is presented below.
| Three Months Ended | |||||||||||||
| June 30, 2026 | March 31, 2026 | June 30, 2025 | |||||||||||
| (In thousands) | |||||||||||||
| Reconciliation of non-GAAP pre-tax, pre-provision income | |||||||||||||
| Net (loss) income | $ | (1,307 | ) | $ | 1,674 | $ | 2,417 | ||||||
| Excluding provision for (reversal of) credit losses | 5,902 | 1,047 | (55 | ) | |||||||||
| Excluding provision for income tax (benefit) expense | (638 | ) | 599 | 825 | |||||||||
| Pre-tax, pre-provision income (non-GAAP) | $ | 3,957 | $ | 3,320 | $ | 3,187 | |||||||
| SUMMIT STATE BANK | |||||||||||||||
| STATEMENTS OF INCOME | |||||||||||||||
| (In thousands except earnings per share data) | |||||||||||||||
| Three Months Ended | |||||||||||||||
| June 30, 2026 | March 31, 2026 | June 30, 2025 | |||||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | |||||||||||||
| Interest and dividend income: | |||||||||||||||
| Interest and fees on loans | $ | 12,691 | $ | 12,380 | $ | 13,959 | |||||||||
| Interest on deposits with banks | 926 | 898 | 640 | ||||||||||||
| Interest on investment securities | 439 | 468 | 503 | ||||||||||||
| Dividends on FHLB stock | 11 | 298 | 128 | ||||||||||||
| Total interest and dividend income | 14,067 | 14,044 | 15,230 | ||||||||||||
| Interest expense: | |||||||||||||||
| Deposits | 4,608 | 4,871 | 5,875 | ||||||||||||
| Federal Home Loan Bank advances | - | 5 | - | ||||||||||||
| Junior subordinated debt | 117 | 122 | 126 | ||||||||||||
| Total interest expense | 4,725 | 4,998 | 6,001 | ||||||||||||
| Net interest income before provision for (reversal of) credit losses | 9,342 | 9,046 | 9,229 | ||||||||||||
| Provision for credit losses on loans | 5,924 | 1,057 | - | ||||||||||||
| Reversal of credit losses on unfunded loan commitments | (20 | ) | (9 | ) | (55 | ) | |||||||||
| Reversal of credit losses on investments | (2 | ) | (1 | ) | - | ||||||||||
| Net interest income after provision for (reversal of) credit | |||||||||||||||
| losses on loans, unfunded loan commitments and investments | 3,440 | 7,999 | 9,284 | ||||||||||||
| Non-interest income: | |||||||||||||||
| Service charges on deposit accounts | 267 | 255 | 218 | ||||||||||||
| Rental income | 54 | 54 | 57 | ||||||||||||
| Net gain on loan sales | 308 | 497 | 29 | ||||||||||||
| Net loss on securities | - | - | (5 | ) | |||||||||||
| Other income (loss) | 295 | 206 | (36 | ) | |||||||||||
| Total non-interest income | 924 | 1,012 | 263 | ||||||||||||
| Non-interest expense: | |||||||||||||||
| Salaries and employee benefits | 3,752 | 4,242 | 3,902 | ||||||||||||
| Occupancy and equipment | 358 | 356 | 467 | ||||||||||||
| Other expenses | 2,199 | 2,140 | 1,936 | ||||||||||||
| Total non-interest expense | 6,309 | 6,738 | 6,305 | ||||||||||||
| (Loss) income before provision for income taxes | (1,945 | ) | 2,273 | 3,242 | |||||||||||
| Provision for income tax (benefit) expense | (638 | ) | 599 | 825 | |||||||||||
| Net (loss) income | $ | (1,307 | ) | $ | 1,674 | $ | 2,417 | ||||||||
| Basic (loss) earnings per common share | $ | (0.19 | ) | $ | 0.25 | $ | 0.36 | ||||||||
| Diluted (loss) earnings per common share | $ | (0.19 | ) | $ | 0.25 | $ | 0.36 | ||||||||
| Basic weighted average shares of common stock outstanding | 6,747,496 | 6,734,158 | 6,733,823 | ||||||||||||
| Diluted weighted average shares of common stock outstanding | 6,747,496 | 6,734,158 | 6,733,823 | ||||||||||||
| SUMMIT STATE BANK | ||||||||||||
| STATEMENTS OF INCOME | ||||||||||||
| (In thousands except earnings per share data) | ||||||||||||
| Six Months Ended | ||||||||||||
| June 30, 2026 | June 30, 2025 | |||||||||||
| (Unaudited) | (Unaudited) | |||||||||||
| Interest and dividend income: | ||||||||||||
| Interest and fees on loans | $ | 25,072 | $ | 27,379 | ||||||||
| Interest on deposits with banks | 1,824 | 1,117 | ||||||||||
| Interest on investment securities | 907 | 1,018 | ||||||||||
| Dividends on FHLB stock | 309 | 258 | ||||||||||
| Total interest and dividend income | 28,112 | 29,772 | ||||||||||
| Interest expense: | ||||||||||||
| Deposits | 9,480 | 12,163 | ||||||||||
| Federal Home Loan Bank advances | 5 | 40 | ||||||||||
| Junior Subordinated Debt | 239 | 262 | ||||||||||
| Total interest expense | 9,724 | 12,465 | ||||||||||
| Net interest income before provision for (reversal of) credit losses | 18,388 | 17,307 | ||||||||||
| Provision for (reversal of) credit losses on loans | 6,981 | (577 | ) | |||||||||
| Reversal of credit losses on unfunded loan commitments | (29 | ) | (93 | ) | ||||||||
| Reversal of credit losses on investments | (3 | ) | (13 | ) | ||||||||
| Net interest income after provision for (reversal of) credit | ||||||||||||
| losses on loans, unfunded loan commitments and investments | 11,439 | 17,990 | ||||||||||
| Non-interest income: | ||||||||||||
| Service charges on deposit accounts | 522 | 443 | ||||||||||
| Rental income | 108 | 114 | ||||||||||
| Net gain on loan sales | 805 | 51 | ||||||||||
| Net loss on securities | - | (5 | ) | |||||||||
| Other income | 501 | 306 | ||||||||||
| Total non-interest income | 1,936 | 909 | ||||||||||
| Non-interest expense: | ||||||||||||
| Salaries and employee benefits | 7,994 | 7,629 | ||||||||||
| Occupancy and equipment | 714 | 888 | ||||||||||
| Other expenses | 4,339 | 4,040 | ||||||||||
| Total non-interest expense | 13,047 | 12,557 | ||||||||||
| Income before provision for income taxes | 328 | 6,342 | ||||||||||
| Provision for income tax (benefit) expense | (39 | ) | 1,430 | |||||||||
| Net income | $ | 367 | $ | 4,912 | ||||||||
| Basic earnings per common share | $ | 0.05 | $ | 0.73 | ||||||||
| Diluted earnings per common share | $ | 0.05 | $ | 0.73 | ||||||||
| Basic weighted average shares of common stock outstanding | 6,740,864 | 6,726,516 | ||||||||||
| Diluted weighted average shares of common stock outstanding | 6,740,864 | 6,726,516 | ||||||||||
| SUMMIT STATE BANK | |||||||||||||||
| BALANCE SHEETS | |||||||||||||||
| (In thousands except share data) | |||||||||||||||
| June 30, 2026 | March 31, 2026 | June 30, 2025 | |||||||||||||
| (Unaudited) | (Audited) | (Unaudited) | |||||||||||||
| ASSETS | |||||||||||||||
| Cash and due from banks | $ | 112,553 | $ | 115,456 | $ | 66,410 | |||||||||
| Total cash and cash equivalents | 112,553 | 115,456 | 66,410 | ||||||||||||
| Investment securities: | |||||||||||||||
| Available-for-sale, less allowance for credit losses of $1, $3 and $23 | |||||||||||||||
| (at fair value; amortized cost of $71,989, $73,127 and $78,015) |
62,543 | 63,721 | 67,378 | ||||||||||||
| Loans held for sale | - | - | 3,760 | ||||||||||||
| Loans held for investment, less allowance for | |||||||||||||||
| credit losses of $12,813, $15,544 and $13,133 | 746,099 | 776,109 | 851,309 | ||||||||||||
| Bank premises and equipment, net | 4,820 | 4,734 | 4,974 | ||||||||||||
| Investment in Federal Home Loan Bank stock (FHLB), at cost | 5,889 | 5,889 | 5,889 | ||||||||||||
| Other Real Estate Owned | 2,294 | 2,294 | 4,437 | ||||||||||||
| Affordable housing tax credit investments | 6,055 | 6,268 | 6,925 | ||||||||||||
| Accrued interest receivable and other assets | 19,530 | 21,451 | 21,390 | ||||||||||||
| Total assets | $ | 959,783 | $ | 995,922 | $ | 1,032,472 | |||||||||
| LIABILITIES AND | |||||||||||||||
| SHAREHOLDERS' EQUITY | |||||||||||||||
| Deposits: |
|||||||||||||||
| Demand - non interest-bearing | $ | 186,424 | $ | 190,769 | $ | 193,390 | |||||||||
| Demand - interest-bearing | 222,261 | 215,660 | 207,176 | ||||||||||||
| Savings | 41,299 | 39,571 | 39,875 | ||||||||||||
| Money market | 184,116 | 198,515 | 200,320 | ||||||||||||
| Time deposits that meet or exceed the FDIC insurance limit | 65,310 | 68,741 | 93,325 | ||||||||||||
| Other time deposits | 146,719 | 166,003 | 188,523 | ||||||||||||
| Total deposits | 846,129 | 879,259 | 922,609 | ||||||||||||
| Junior subordinated debt | 5,956 | 5,953 | 5,942 | ||||||||||||
| Affordable housing commitment | 458 | 458 | 511 | ||||||||||||
| Accrued interest payable and other liabilities | 5,883 | 7,591 | 5,302 | ||||||||||||
| Total liabilities | 858,426 | 893,261 | 934,364 | ||||||||||||
| Shareholders' equity | |||||||||||||||
| Preferred stock, no par value; 20,000,000 shares authorized; | |||||||||||||||
| no shares issued and outstanding |
- | - | - | ||||||||||||
| Common stock, no par value; shares authorized - 30,000,000 shares; | |||||||||||||||
| issued and outstanding 6,766,616, 6,771,526 and 6,771,526 |
38,039 | 38,011 | 37,843 | ||||||||||||
| Retained earnings |
70,038 | 71,342 | 67,782 | ||||||||||||
| Accumulated other comprehensive loss, net | (6,720 | ) | (6,692 | ) | (7,517 | ) | |||||||||
| Total shareholders' equity | 101,357 | 102,661 | 98,108 | ||||||||||||
| Total liabilities and shareholders' equity | $ | 959,783 | $ | 995,922 | $ | 1,032,472 | |||||||||
| Financial Summary | ||||||||||||
| (Dollars in thousands except per share data) | ||||||||||||
| Three Months Ended | ||||||||||||
| June 30, 2026 | March 31, 2026 | June 30, 2025 | ||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | ||||||||||
| Statement of Income Data: | ||||||||||||
| Net interest income | $ | 9,342 | $ | 9,046 | $ | 9,229 | ||||||
| Provision for credit losses on loans | 5,924 | 1,057 | - | |||||||||
| Reversal of credit losses on unfunded loan commitments | (20 | ) | (9 | ) | (55 | ) | ||||||
| Reversal of credit losses on investments | (2 | ) | (1 | ) | - | |||||||
| Non-interest income | 924 | 1,012 | 263 | |||||||||
| Non-interest expense | 6,309 | 6,738 | 6,305 | |||||||||
| Provision for income tax (benefit) expense | (638 | ) | 599 | 825 | ||||||||
| Net (loss) income | $ | (1,307 | ) | $ | 1,674 | $ | 2,417 | |||||
| Selected per Common Share Data: | ||||||||||||
| Basic (loss) earnings per common share | $ | (0.19 | ) | $ | 0.25 | $ | 0.36 | |||||
| Diluted (loss) earnings per common share | $ | (0.19 | ) | $ | 0.25 | $ | 0.36 | |||||
| Book value per common share (1) | $ | 14.98 | $ | 15.16 | $ | 14.49 | ||||||
| Selected Balance Sheet Data: | ||||||||||||
| Assets | $ | 959,783 | $ | 995,922 | $ | 1,032,472 | ||||||
| Loans held for sale | - | - | 3,760 | |||||||||
| Loans held for investment, net | 746,099 | 776,109 | 851,309 | |||||||||
| Deposits | 846,129 | 879,259 | 922,609 | |||||||||
| Average assets | 974,347 | 1,002,042 | 1,046,914 | |||||||||
| Average earning assets | 948,059 | 973,787 | 1,012,346 | |||||||||
| Average shareholders' equity | 104,317 | 103,569 | 97,139 | |||||||||
| Nonperforming loans | 18,463 | 32,876 | 9,325 | |||||||||
| Net loans charged-off | (8,655 | ) | - | (492 | ) | |||||||
| Other real estate owned | 2,294 | 2,294 | 4,437 | |||||||||
| Total nonperforming assets | 20,757 | 35,170 | 13,762 | |||||||||
| Selected Ratios: | ||||||||||||
| (Loss) return on average assets (2) | (0.54 | )% | 0.68 | % | 0.93 | % | ||||||
| (Loss) return on average common shareholders' equity (2) | (5.03 | )% | 6.56 | % | 9.98 | % | ||||||
| Efficiency ratio (3) | 61.46 | % | 66.99 | % | 66.39 | % | ||||||
| Net interest margin (2) | 3.95 | % | 3.77 | % | 3.66 | % | ||||||
| Common equity tier 1 capital ratio | 13.21 | % | 12.91 | % | 11.17 | % | ||||||
| Tier 1 capital ratio | 13.21 | % | 12.91 | % | 11.17 | % | ||||||
| Total capital ratio | 14.91 | % | 14.60 | % | 12.94 | % | ||||||
| Tier 1 leverage ratio | 10.84 | % | 10.67 | % | 9.84 | % | ||||||
| Average shareholders' equity to average assets | 10.71 | % | 10.34 | % | 9.28 | % | ||||||
| Nonperforming loans to total loans held for investment | 2.43 | % | 4.15 | % | 1.08 | % | ||||||
| Nonperforming assets to total assets | 2.16 | % | 3.53 | % | 1.33 | % | ||||||
| Allowance for credit losses to total loans held for investment | 1.69 | % | 1.96 | % | 1.52 | % | ||||||
| Allowance for credit losses to nonperforming loans | 69.40 | % | 47.28 | % | 140.84 | % | ||||||
| (1) Total shareholders' equity divided by total common shares outstanding. | ||||||||||||
| (2) Annualized. | ||||||||||||
| (3) Non-interest expenses to net interest and non-interest income, net of securities gains. | ||||||||||||
| Financial Summary | |||||||||
| (Dollars in thousands except per share data) | |||||||||
| As of and for the | |||||||||
| Six Months Ended | |||||||||
| June 30, 2026 | June 30, 2025 | ||||||||
| (Unaudited) | (Unaudited) | ||||||||
| Statement of Income Data: | |||||||||
| Net interest income | $ | 18,388 | $ | 17,307 | |||||
| Provision for (reversal of) credit losses on loans | 6,981 | (577 | ) | ||||||
| Reversal of credit losses on unfunded loan commitments | (29 | ) | (93 | ) | |||||
| Reversal of credit losses on investments | (3 | ) | (13 | ) | |||||
| Non-interest income | 1,936 | 909 | |||||||
| Non-interest expense | 13,047 | 12,557 | |||||||
| Provision for income tax (benefit) expense | (39 | ) | 1,430 | ||||||
| Net income | $ | 367 | $ | 4,912 | |||||
| Selected per Common Share Data: | |||||||||
| Basic earnings per common share | $ | 0.05 | $ | 0.73 | |||||
| Diluted earnings per common share | $ | 0.05 | $ | 0.73 | |||||
| Book value per common share (1) | $ | 14.98 | $ | 14.49 | |||||
| Selected Balance Sheet Data: | |||||||||
| Assets | $ | 959,783 | $ | 1,032,472 | |||||
| Loans held for sale | - | 3,760 | |||||||
| Loans held for investment, net | 746,099 | 851,309 | |||||||
| Deposits | 846,129 | 922,609 | |||||||
| Average assets | 988,118 | 1,053,372 | |||||||
| Average earning assets | 960,851 | 1,020,410 | |||||||
| Average shareholders' equity | 103,945 | 95,389 | |||||||
| Nonperforming loans | 18,463 | 9,325 | |||||||
| Net loans (charged-off) recovered | (8,655 | ) | 17 | ||||||
| Other real estate owned | 2,294 | 4,437 | |||||||
| Total nonperforming assets | 20,757 | 13,762 | |||||||
| Selected Ratios: | |||||||||
| Return on average assets (2) | 0.07 | % | 0.94 | % | |||||
| Return on average common shareholders' equity (2) | 0.71 | % | 10.38 | % | |||||
| Efficiency ratio (3) | 64.20 | % | 68.91 | % | |||||
| Net interest margin (2) | 3.86 | % | 3.42 | % | |||||
| Common equity tier 1 capital ratio | 13.21 | % | 11.17 | % | |||||
| Tier 1 capital ratio | 13.21 | % | 11.17 | % | |||||
| Total capital ratio | 14.91 | % | 12.94 | % | |||||
| Tier 1 leverage ratio | 10.84 | % | 9.84 | % | |||||
| Average shareholders' equity to average assets | 10.52 | % | 9.06 | % | |||||
| Nonperforming loans to total loans held for investment | 2.43 | % | 1.08 | % | |||||
| Nonperforming assets to total assets | 2.16 | % | 1.33 | % | |||||
| Allowance for credit losses to total loans held for investment | 1.69 | % | 1.52 | % | |||||
| Allowance for credit losses to nonperforming loans | 69.40 | % | 140.84 | % | |||||
| (1) Total shareholders' equity divided by total common shares outstanding. | |||||||||
| (2) Annualized. | |||||||||
| (3) Non-interest expenses to net interest and non-interest income, net of securities gains. | |||||||||
Contact: Brian Reed, President and CEO, Summit State Bank (707) 568-4908
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