From GlobeNewswire: 2025-04-29 09:00:00

Summit State Bank reported a net income of $2,494,000 for the first quarter of 2025, a significant improvement from the prior year. The bank’s net interest margin increased to 3.19% and non-performing assets decreased to $21,884,000 compared to $41,548,000 in 2024. The Tier 1 Leverage ratio also rose to 9.45%.

President and CEO, Brian Reed, highlighted the bank’s progress in resolving problem loans, with a $10,307,000 decrease in non-performing loans in the first quarter of 2025. The bank suspended cash dividends to focus on capital building and increasing liquidity. Loan portfolio management resulted in a 4% decrease in net loans and a 2% increase in total deposits.

Operating results for the first quarter of 2025 showed an annualized return on average assets of 0.95% and a return on average equity of 10.80%. The net interest margin improved to 3.19% due to lower cost of funds and higher loan yields. Interest income increased slightly, while interest expense decreased by 9%.

Non-interest income decreased in the first quarter of 2025 to $646,000, primarily due to lower gains on sales of SBA guaranteed loan balances. Operating expenses decreased to $6,253,000, primarily from a reduction in salaries and employee benefits. The bank is focused on implementing cost-saving measures to improve operating efficiencies.

The bank strategically managed its loan and deposit portfolios in the first quarter of 2025 to reduce balance sheet risk and improve liquidity and capital ratios. Net loans decreased by 4% to $877,354,000, while total deposits increased by 2% to $957,065,000. Shareholders’ equity was $95,341,000 at March 31, 2025.

Credit quality metrics improved, with non-performing assets at $21,884,000 in 2025 compared to $41,548,000 in 2024. The bank remains focused on managing asset quality and reducing portfolio risk. Net recoveries of $509,000 were recorded in the first quarter of 2025, and the allowance for credit losses to total loans was 1.53% on March 31, 2025.

Summit State Bank, founded in 1982, is an award-winning community bank serving the North Bay. The bank’s total assets were $1.1 billion with total equity of $95 million as of March 31, 2025. The bank’s stock is traded on the Nasdaq Global Market under the symbol SSBI. For further information, contact Brian Reed, President, and CEO at (707) 568-4908.



Read more at GlobeNewswire:: Summit State Bank Earns $2.5 Million, or $0.37 Per Diluted