Summit State Bank Earns $1,067,000, or $0.16 Per Diluted Share, in Fourth Quarter 2025

Rhea-AI Summary

Summit State Bank (Nasdaq: SSBI) reported net income of $1,067,000 (EPS $0.16) for Q4 2025 and net income of $6,796,000 (EPS $1.01) for full-year 2025, reversing a 2024 loss. Key metrics: NIM 3.62% in Q4 2025 (up from 2.88% year‑over‑year), Tier 1 leverage 10.37%, total liquidity $459.2M (45.7% of assets), net loans down 8% to $831.8M, and total deposits down 7% to $891.1M. Non-performing assets were $27.3M (2.72% of assets) and allowance for credit losses to loans was 1.71%.

Positive

• Net income of $1.07M in Q4 2025 reversing a Q4 2024 loss
• Full-year 2025 net income of $6.80M
• Net interest margin expanded 74 bps YoY to 3.62% in Q4 2025
• Tier 1 leverage ratio improved to 10.37%
• Total liquidity of $459.2M (45.7% of assets)

Negative

• Net loans decreased 8% YoY to $831.8M
• Total deposits decreased 7% YoY to $891.1M
• Non-performing assets remain elevated at $27.3M (2.72% of assets)
• Noninterest income loss of $1.40M in Q4 2025 due to OREO valuation loss

Key Figures

Q4 2025 net income: $1,067,000 Q4 2025 EPS: $0.16 per diluted share FY 2025 net income: $6,796,000 +5 more

8 metrics

Q4 2025 net income $1,067,000 Fourth quarter 2025 vs net loss of $7,142,000 in Q4 2024

Q4 2025 EPS $0.16 per diluted share Fourth quarter 2025 vs $1.06 loss per diluted share in Q4 2024

FY 2025 net income $6,796,000 Year ended December 31, 2025 vs net loss of $4,193,000 in 2024

Net interest margin 3.62% Fourth quarter 2025 vs 2.88% in Q4 2024 and 3.51% in Q3 2025

Non-performing assets $27,346,000 At December 31, 2025 vs $32,191,000 at December 31, 2024

Tier 1 Leverage ratio 10.37% At December 31, 2025 vs 8.87% at December 31, 2024

Total liquidity $459,228,000 (45.7% of assets) As of December 31, 2025, includes on-balance sheet and borrowing capacity

Allowance for credit losses 1.71% of total loans At December 31, 2025 vs 1.49% one year earlier

Market Reality Check

Price: $13.58 Vol: Volume 6,532 is 1.06x the...

normal vol

$13.58 Last Close

Volume Volume 6,532 is 1.06x the 20-day average of 6,137 shares. normal

Technical Price $13.58 is trading above the 200-day MA at $10.93 and 2.4% below the 52-week high.

Peers on Argus

SSBI is up 0.41% with mixed peer moves: AUBN (-0.31%), IROQ (+0.22%), PBHC (-0.0...

SSBI is up 0.41% with mixed peer moves: AUBN (-0.31%), IROQ (+0.22%), PBHC (-0.07%), UBCP (+0.58%), CFSB (flat). The pattern points to a stock-specific reaction to its earnings release rather than a sector-wide move.

Historical Context

2 past events · Latest: Oct 29 (Positive)

Pattern 2 events

Date	Event	Sentiment	Move	Catalyst
Oct 29	Quarterly earnings	Positive	-7.8%	Q3 2025 earnings with higher net income and improved credit metrics.
Jul 29	Quarterly earnings	Positive	+1.7%	Q2 2025 earnings showing stronger margins and reduced non-performing assets.

Pattern Detected

Recent earnings releases show mixed reactions: one positive report drew a negative move and another drew a positive move, indicating inconsistent price response to earnings.

Recent Company History

Over recent quarters, Summit State Bank has focused on profitability, balance sheet reduction, and credit clean-up. In Q2 2025, it reported net income of $2.4M with net interest margin at 3.66% and sharply lower non-performing assets, and the stock rose 1.69% the next day. In Q3 2025, net income was $818k with a 3.51% margin and strong liquidity, yet the stock fell 7.82%. Today’s Q4 2025 results continue the profitability and credit-improvement narrative.

Market Pulse Summary

This announcement highlights a return to profitability, with Q4 2025 net income of $1,067,000 and fu...

Analysis

This announcement highlights a return to profitability, with Q4 2025 net income of $1,067,000 and full-year 2025 net income of $6,796,000 after prior-year losses. Net interest margin improved to 3.62%, non-performing assets declined to $27.35M, and the Tier 1 Leverage ratio increased to 10.37%. Investors may focus on ongoing credit quality trends, the impact of balance sheet reduction, and whether core earnings can remain stable as the bank manages loan and deposit portfolios.

Key Terms

net interest margin, non-performing assets, tier 1 leverage ratio, other real estate owned, +4 more

8 terms

net interest margin financial

"Our core banking operations performed well, with improved net interest margin and disciplined expense"

Net interest margin measures how much a bank earns from lending and investing compared with what it pays for funding, expressed as a percentage of its interest-earning assets. Think of it like a grocery store’s markup: it shows the gap between buying cost and selling price per dollar of goods — here, the cost is interest paid and the sale is interest received. Investors watch it because a higher margin usually means a bank is more profitable and better at managing interest rate and credit conditions.

non-performing assets financial

"Non-performing assets were $27,346,000 at December 31, 2025 compared to $32,191,000"

Loans or other credit exposures that are not producing expected income because borrowers have stopped making scheduled payments for a significant period (commonly around 90 days). Think of it like a business lending money that has gone quiet — the cash flow stops while the lender still carries the debt on its books. High levels of non-performing assets matter to investors because they reduce a lender’s earnings, tie up capital that could be used for growth, and signal higher risk of future losses.

tier 1 leverage ratio regulatory

"The Bank’s Tier 1 Leverage ratio increased to 10.37% at December 31, 2025"

Tier 1 leverage ratio measures a bank’s core capital — the money that can absorb losses — as a share of its total assets, showing how much of its balance sheet is funded by real loss-absorbing capital rather than borrowed money. Investors use it like a safety gauge: a higher ratio means a bigger cushion against shocks and lower risk of insolvency, similar to how a thicker spare tire reduces the chance of being stranded.

other real estate owned financial

"loss on valuation of other real estate owned of $2,143,000 in the fourth quarter of 2025"

Assets a lender or financial firm holds after taking back real property through foreclosure or repossession because a borrower defaulted. Think of it like a store keeping returned items it didn’t sell — these properties are not earning interest, can be costly to maintain, and may be sold at a loss or profit, so they directly affect a lender’s balance sheet, cash flow and perceived credit risk for investors.

allowance for credit losses financial

"The allowance for credit losses to total loans was 1.71% at December 31, 2025"

Allowance for credit losses is a reserve set aside by a financial institution to cover potential losses from borrowers who may not repay their loans. It acts like a safety net, helping the institution prepare for loans that might turn sour. For investors, it signals how cautious the institution is about the quality of its loans and potential risks to its financial health.

non-accrual loans financial

"offset by the addition of $1,626,000 in non-accrual loans."

A non-accrual loan is a loan a lender has decided is unlikely to produce the scheduled interest payments, so the lender stops counting future interest as income and may record the loan at a reduced value. Think of it like renting out a house where the tenant has stopped paying: you stop counting future rent as earnings because it’s uncertain you’ll get it. For investors, a rise in non-accrual loans signals worsening credit quality, lower reported income and higher potential losses that can weaken a bank’s capital and share price.

net charge-offs financial

"There were no net charge-offs during the three months ended December 31, 2025"

Net charge-offs are the amount of loans or credit a lender removes from its books as uncollectible after subtracting any money later recovered from previously written-off accounts. Think of it like a store writing off unpaid tabs but getting back a few dollars later — the net figure shows the real loss. Investors watch this to judge a lender’s loan quality, future profits and how much capital may be needed to cover bad debts.

CECL model assumptions financial

"updates to CECL model assumptions, including qualitative factors and forward-looking economic"

CECL model assumptions are the estimated inputs and judgments a lender uses to calculate expected lifetime credit losses on loans and debt instruments. They include views about future economic conditions, borrower behavior, and historical loss experience, and they determine how much money a company sets aside now to cover possible defaults — similar to using a weather forecast and past patterns to decide how many umbrellas to stock for a season. Investors care because those assumptions directly affect reported loan-loss reserves, earnings volatility, and capital strength, so changes can signal shifts in risk outlook or accounting treatment.

AI-generated analysis. Not financial advice.

SANTA ROSA, Calif., Jan. 27, 2026 (GLOBE NEWSWIRE) -- Summit State Bank (the “Bank”) (Nasdaq: SSBI) today reported net income of $1,067,000, or $0.16 per diluted share for the fourth quarter ended December 31, 2025, compared to net loss of $7,142,000, or $1.06 loss per diluted share for the fourth quarter ended December 31, 2024.

For the year ended December 31, 2025, the Bank reported net income of $6,796,000, or $1.01 per diluted share compared to a net loss of $4,193,000, or $0.62 loss per diluted share for the year ended December 31, 2024.
        
“In 2025, our focus was on building a strong foundation for the future, and we made meaningful progress toward that goal,” said Brian Reed, President and CEO. “After reporting a net loss in 2024, we returned to profitability and made significant progress on our strategic priorities. Our core banking operations performed well, with improved net interest margin and disciplined expense management driving our results. While we continue to work through some credit challenges in our loan portfolio, the overall trajectory is positive. Our team remains focused on what we do best: serving the financial needs of local businesses and families. That focus is reflected in our earnings for the fourth quarter and for the year. We are encouraged by this progress and committed to building on this momentum in the year ahead.

Fourth quarter 2025 Financial Highlights (at or for the three months ended December 31, 2025)

• Net income was $1,067,000, or $0.16 per diluted share, compared to a net loss of $7,142,000, or $1.06 loss per diluted share, in the fourth quarter of 2024 and net income of $818,000, or $0.12 per diluted share for the third quarter ended September 30, 2025.
• Net interest margin was 3.62% in the fourth quarter of 2025 compared to 2.88% in the fourth quarter of 2024 and 3.51% in the third quarter of 2025.
• Non-performing assets were $27,346,000 at December 31, 2025 compared to $32,191,000 at December 31, 2024 and $27,978,000 at September 30, 2025.
• The Bank’s Tier 1 Leverage ratio increased to 10.37% at December 31, 2025 compared to 8.87% at December 31, 2024.
• Annualized return on average assets and annualized return on average equity for the fourth quarter of 2025 was 0.42% and 4.16%, respectively. This compared to annualized loss on average assets and annualized loss on average equity for the fourth quarter of 2024 of 2.59% and 28.05%, respectively.
• The allowance for credit losses to total loans was 1.71% at December 31, 2025 compared to 1.49% one year earlier and 1.65% in the preceding quarter.
• The Bank maintained total liquidity of $459,228,000, or 45.7% of total assets as of December 31, 2025. This includes on balance sheet liquidity (cash and equivalents and unpledged available-for-sale securities) of $131,899,000 or 13.1% of total assets, plus available borrowing capacity of $327,329,000 or 32.6% 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 decreased 8% to $831,793,000 at December 31, 2025, compared to $905,075,000 one year earlier and decreased 1% compared to $838,402,000 in the third quarter of 2025.
  • Total deposits decreased 7% to $891,111,000 at December 31, 2025, compared to $962,562,000 at December 31, 2024, and increased slightly when compared to the third quarter of 2025, at $888,784,000.
• Book value was $14.94 per share, compared to $13.53 per share a year ago and $14.73 in the third quarter of 2025.
  

Operating Results

For the fourth quarter of 2025, the annualized return on average assets was 0.42% and the annualized return on average equity was 4.16%. This compared to an annualized loss on average assets of 2.59% and an annualized loss on average equity of 28.05%, respectively, for the fourth quarter of 2024.

“During the fourth quarter of 2025, our net interest margin expanded by 74 basis points compared to the fourth quarter of 2024, primarily driven by a favorable shift in the funding mix and continued asset repricing, particularly within the loan portfolio,” said Reed. The Bank’s net interest margin was 3.62% in the fourth quarter of 2025 compared to 2.88% in the fourth quarter of 2024 and 3.51% in the third quarter of 2025.

Interest and dividend income decreased 3.34% to $14,436,000 in the fourth quarter of 2025 compared to $14,935,000 in the fourth quarter of 2024. The decrease in interest income is attributable to lower loan portfolio volume, which reduced interest and fees on loans by $322,000; reduced interest on deposits with banks of $129,000; and lower investment securities holdings, which decreased interest income by $48,000.

Interest expense decreased 24% to $5,464,000 in the fourth quarter of 2025 compared to $7,233,000 in the fourth quarter of 2024. The cost of deposits also decreased to 2.32% in the fourth quarter of 2025 compared to 2.87% in the fourth quarter of 2024. The decrease in interest expense is primarily attributable to a $1,901,000 decrease in interest expense on deposits resulting from lower cost of funds and lower volume of deposits.

Noninterest income decreased in the fourth quarter of 2025 to a loss of $1,402,000 compared to income of $680,000 in the fourth quarter of 2024. The decrease is primarily attributed to the Bank recognizing a loss on valuation of other real estate owned of $2,143,000 in the fourth quarter of 2025 and recognizing $436,000 in gains on sales of SBA guaranteed loan balances in the fourth quarter of 2025 compared to $857,000 in gains on sales of SBA guaranteed loan balances in the fourth quarter of 2024.

Operating expenses decreased in the fourth quarter of 2025 to $5,743,000 compared to $10,200,000 in the fourth quarter of 2024. The decrease was primarily due to a one-time non-cash impairment charge of $4,119,000 to write off the remaining balance of goodwill in the fourth quarter of 2024.

“We are driving operational efficiencies and expense management across every part of the Bank. By finding smarter ways to work and eliminating unnecessary costs, our customers continue to get the same quality banking they've always counted on from us,” said Reed.

Balance Sheet Review

During the fourth quarter of 2025, the Bank strategically managed its loan and deposit portfolios to reduce balance sheet risk and improve liquidity and capital ratios. As a result, net loans decreased 8% to $831,793,000, and total deposits decreased 7% to $891,111,000 as of December 31, 2025 compared to December 31, 2024.

Net loans were $831,793,000 at December 31, 2025 compared to $905,075,000 at December 31, 2024, and decreased 1% compared to September 30, 2025. 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 $217,656,000 is owner occupied, and the remaining 67% or $448,536,000 is non-owner occupied. The Bank’s entire loan portfolio is well diversified between industries and product type. Office space loans represent $141,706,000 or 17% of the total loan portfolio; of this, total owner occupied is $56,152,000 or 40% and non-owner occupied is $85,554,000 or 60%.

Total deposits were $891,111,000 at December 31, 2025 compared to $962,562,000 at December 31, 2024, and increased less than 1% compared to the prior quarter end. At December 31, 2025, noninterest bearing demand deposit accounts decreased 2% compared to a year ago and represented 21% of total deposits; savings, NOW and money market accounts remained flat compared to a year ago and represented 52% of total deposits, and CDs decreased 22% compared to a year ago and comprised 27% of total deposits.

Shareholders’ equity was $101,171,000 at December 31, 2025 compared to $91,723,000 one year earlier and $99,728,000 three months earlier. The increase in shareholders’ equity compared to a year ago was primarily due to an increase in retained earnings, reflecting net income of $6,796,000 over the past twelve months and a $2,435,000 decrease in accumulated other comprehensive loss. The increase in shareholders’ equity compared to three months earlier was primarily due to higher retained earnings resulting from $1,067,000 in net income earned during the quarter and a $320,000 decrease in accumulated other comprehensive loss. At December 31, 2025, book value was $14.94 per share, compared to $14.73 three months earlier, and $13.53 at December 31, 2024.

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 fourth quarter of 2025 was 10.37%, an increase compared to 8.87% for the fourth quarter of 2024.

Credit Quality

Non-performing assets were $27,346,000, or 2.72% of total assets, at December 31, 2025. This compared to $27,978,000 in non-performing assets at September 30, 2025, and $32,191,000 in non-performing assets at December 31, 2024. The decrease from the prior quarter was primarily due to a valuation adjustment on other real estate owned of $2,143,000, offset by the addition of $1,626,000 in non-accrual loans. The decrease compared to last year was primarily driven by the resolution of several non-accrual loans totaling $18,696,000, of which $18,010,000 related to two borrower relationships, and a $2,143,000 valuation adjustment on other real estate owned. These reductions were partially offset by the addition of $16,114,000 in new non-accrual loans during the year, of which $14,488,000 related to two relationships. Non-performing assets include $2,294,000 for one other real estate owned property at December 31, 2025 compared to $4,437,000 for one other real estate owned property at September 30, 2025 and December 31, 2024.

“The progress we've made in credit metrics over the past year is a step in the right direction, though there is still work to do,” said Reed. “Quarter-over-quarter reductions in non-performing loans reflect our commitment to reducing risk across the portfolio. As of quarter-end, three relationships represented $23,519,000, or 94% of all non-performing loans. Outside of our non-performing loans, the overall loan portfolio is performing well, with past due loans at 0.11% of total loans at December 31, 2025 compared to 0.40% at December 31, 2024.”

There were no net charge-offs during the three months ended December 31, 2025, compared to $1,800,000 in net charge-offs during the three months ended September 30, 2025 and $8,343,000 in net charge-offs during the three months ended December 31, 2024.

For the fourth quarter of 2025, the Bank recorded a provision for credit loss on loans of $445,000, a $30,000 provision for credit losses for unfunded loan commitments and a $1,000 provision for credit losses on investments. This compared to a $6,570,000 provision for credit losses on loans, a $154,000 provision for credit losses on unfunded loan commitments and a $2,000 reversal of credit losses on investments in the fourth quarter of 2024. The provision recorded in the fourth quarter of 2024 reflected a one-time, proactive credit cleanup related to the resolution of a small number of large non-performing loans, including substantial charge-offs and reserve replenishment tied to specific collateral-dependent credits. These actions materially reduced non-performing loan balances entering 2025. As a result, the fourth quarter of 2025 provision reflects normalized reserve activity driven by portfolio performance and model updates rather than large, relationship-specific credit events.

While non-performing loans declined year-over-year, the allowance for credit losses to total loans increased to 1.71% on December 31, 2025, compared to 1.49% on December 31, 2024. This increase reflects changes in portfolio composition and updates to CECL model assumptions, including qualitative factors and forward-looking economic conditions, rather than deterioration in current credit performance. The reduction in non-performing loans and net charge-offs during the quarter indicate improved asset quality, while the higher allowance level reflects management’s continued conservative approach to reserving.

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 $1.0 billion and total equity of $101 million as of December 31, 2025. 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 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 audited financial results and other disclosures will be reported in Summit State Bank’s annual report on Form 10-Q for the period ended December 31, 2025, 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; risks associated with changes in interest rates, which could adversely affect future operating results; 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, 2024 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.

SUMMIT STATE BANK
STATEMENTS OF INCOME
(In thousands except earnings per share data)
	Three Months Ended
	December 31, 2025				September 30, 2025				December 31, 2024
	(Unaudited)				(Unaudited)				(Audited)
Interest and dividend income:
Interest and fees on loans	$	13,301			$	13,067			$	13,623
Interest on deposits with banks		526				539				655
Interest on investment securities		482				484				530
Dividends on FHLB stock		127				130				127
Total interest and dividend income		14,436				14,220				14,935
Interest expense:
Deposits		5,198				5,373				7,099
Federal Home Loan Bank advances		139				54				6
Junior subordinated debt		127				127				128
Total interest expense		5,464				5,554				7,233
Net interest income before provision for credit losses		8,972				8,666				7,702
Provision for credit losses on loans		445				2,709				6,570
Provision for credit losses on unfunded loan commitments		30				49				154
Provision for (reversal of) credit losses on investments		1				(21	)			(2	)
Net interest income after provision for (reversal of) credit losses, unfunded loan commitments and investments		8,496				5,929				980
Non-interest income:
Service charges on deposit accounts		219				238				225
Rental income		57				45				61
Net gain on loan sales		436				308				857
Net (loss) gain on securities		(2	)			(7	)			6
Loss on valuation of other real estate		(2,143	)			-				(693	)
Other income		31				303				224
Total non-interest (loss) income		(1,402	)			887				680
Non-interest expense:
Salaries and employee benefits		3,463				3,476				3,429
Occupancy and equipment		370				435				413
Goodwill impairment		-				-				4,119
Other expenses		1,910				1,634				2,239
Total non-interest expense		5,743				5,545				10,200
Income (loss) before provision for income taxes		1,351				1,271				(8,540	)
Provision for income tax expense (benefit)		284				453				(1,398	)
Net income (loss)	$	1,067			$	818			$	(7,142	)
Basic (loss) earnings per common share	$	0.16			$	0.12			$	(1.06	)
Diluted (loss) earnings per common share	$	0.16			$	0.12			$	(1.06	)
Basic weighted average shares of common stock outstanding		6,734,158				6,734,158				6,719,127
Diluted weighted average shares of common stock outstanding		6,734,158				6,734,158				6,719,127

SUMMIT STATE BANK
STATEMENTS OF INCOME
(In thousands except earnings per share data)
	Year Ended
	December 31, 2025				December 31, 2024
	(Unaudited)				(Audited)
Interest and dividend income:
Interest and fees on loans	$	53,747			$	53,574
Interest on deposits with banks		2,182				2,060
Interest on investment securities		1,984				2,614
Dividends on FHLB stock		515				514
Total interest and dividend income		58,428				58,762
Interest expense:
Deposits		22,732				28,495
Federal Home Loan Bank advances		233				337
Junior subordinated debt		516				454
Total interest expense		23,481				29,286
Net interest income before provision for credit losses		34,947				29,476
Provision for credit losses on loans		2,577				7,882
(Reversal of) provision for credit losses on unfunded loan commitments		(14	)			55
Reversal of credit losses on investments		(32	)			(22	)
Net interest income after provision for (reversal of) credit losses, unfunded loan commitments and investments		32,416				21,561
Non-interest income:
Service charges on deposit accounts		897				926
Rental income		216				241
Net gain on loan sales		796				2,114
Net (loss) gain on securities		(14	)			6
Loss on valuation of other real estate		(2,143	)			(693	)
Other income		640				865
Total non-interest income		392				3,459
Non-interest expense:
Salaries and employee benefits		14,567				15,639
Occupancy and equipment		1,693				1,761
Goodwill impairment		-				4,119
Other expenses		7,585				7,889
Total non-interest expense		23,845				29,408
Income (loss) before provision for income taxes		8,963				(4,388	)
Provision for income tax expense (benefit)		2,167				(195	)
Net income (loss)	$	6,796			$	(4,193	)
Basic (loss) earnings per common share	$	1.01			$	(0.62	)
Diluted (loss) earnings per common share	$	1.01			$	(0.62	)
Basic weighted average shares of common stock outstanding		6,719,127				6,713,644
Diluted weighted average shares of common stock outstanding		6,719,127				6,713,644

SUMMIT STATE BANK
BALANCE SHEETS
(In thousands except share data)
	December 31, 2025				September 30, 2025				December 31, 2024
	(Unaudited)				(Unaudited)				(Audited)
ASSETS
Cash and due from banks	$	65,524			$	57,952			$	51,403
Total cash and cash equivalents		65,524				57,952				51,403
Investment securities:
Available-for-sale, less allowance for credit losses of $3, $3 and $36 (at fair value; amortized cost of $75,428, $76,211 and $80,887)		66,375				66,688				68,228
Loans, less allowance for credit losses of $14,487, $14,042 and $13,693		831,793				838,402				905,075
Bank premises and equipment, net		4,822				4,893				5,155
Investment in Federal Home Loan Bank (FHLB) stock, at cost		5,889				5,889				5,889
Other real estate owned		2,294				4,437				4,437
Affordable housing tax credit investments		6,479				6,713				7,413
Accrued interest receivable and other assets		21,410				21,548				19,494
Total assets	$	1,004,586			$	1,006,522			$	1,067,094
LIABILITIES AND
SHAREHOLDERS' EQUITY
Deposits:
Demand - non interest-bearing	$	182,723			$	185,258			$	185,756
Demand - interest-bearing		217,158				215,522				193,355
Savings		46,213				39,659				47,235
Money market		203,897				203,126				226,879
Time deposits that meet or exceed the FDIC insurance limit		70,728				73,162				70,717
Other time deposits		170,392				172,057				238,620
Total deposits		891,111				888,784				962,562
FHLB advances		-				5,500				-
Junior subordinated debt, net		5,949				5,945				5,935
Affordable housing commitment		458				511				511
Accrued interest payable and other liabilities		5,897				6,054				6,363
Total liabilities		903,415				906,794				975,371
Total shareholders' equity		101,171				99,728				91,723
Total liabilities and shareholders' equity	$	1,004,586			$	1,006,522			$	1,067,094

Financial Summary
(In thousands except per share data)
	As of and for the
	Three Months Ended
	December 31, 2025				September 30, 2025				December 31, 2024
	(Unaudited)				(Unaudited)				(Audited)
Statement of Income Data:
Net interest income	$	8,972			$	8,666			$	7,702
Provision for credit losses on loans		445				2,709				6,570
Provision for credit losses on unfunded loan commitments		30				49				154
Provision for (reversal of) credit losses on investments		1				(21	)			(2	)
Non-interest (loss) income		(1,402	)			887				680
Non-interest expense		5,743				5,545				10,200
Provision for income tax expense (benefit)		284				453				(1,398	)
Net income (loss)	$	1,067			$	818			$	(7,142	)
Selected per Common Share Data:
Basic earnings (loss) per common share	$	0.16			$	0.12			$	(1.06	)
Diluted earnings (loss) per common share	$	0.16			$	0.12			$	(1.06	)
Dividend per share	$	-			$	-			$	-
Book value per common share (1)	$	14.94			$	14.73			$	13.53
Selected Balance Sheet Data:
Assets	$	1,004,586			$	1,006,522			$	1,067,094
Loans, net		831,793				838,402				905,075
Deposits		891,111				888,784				962,562
Average assets		1,014,372				1,014,576				1,098,885
Average earning assets		982,188				980,157				1,064,872
Average shareholders' equity		101,813				99,829				101,307
Net loans charged-off		-				(1,800	)			(8,343	)
Nonperforming loans		25,052				23,541				27,754
Other real estate owned		2,294				4,437				4,437
Total nonperforming assets		27,346				27,978				32,191
Selected Ratios:
Return (loss) on average assets (2)		0.42	%			0.32	%			(3.00	%)
Return (loss) on average shareholders' equity (2)		4.16	%			3.25	%			(28.05	%)
Efficiency ratio (3)		75.85	%			58.00	%			121.78	%
Net interest margin (2)		3.62	%			3.51	%			2.88	%
Common equity tier 1 capital ratio		11.71	%			11.55	%			10.14	%
Tier 1 capital ratio		11.71	%			11.55	%			10.14	%
Total capital ratio		13.36	%			13.20	%			11.89	%
Tier 1 leverage ratio		10.37	%			10.24	%			8.87	%
Common dividend payout ratio (4)		0.00	%			0.00	%			0.00	%
Average shareholders' equity to average assets		10.04	%			9.84	%			9.22	%
Nonperforming loans to total loans		2.96	%			2.76	%			3.02	%
Nonperforming assets to total assets		2.72	%			2.78	%			3.02	%
Allowance for credit losses to total loans		1.71	%			1.65	%			1.49	%
Allowance for credit losses to nonperforming loans		57.83	%			59.65	%			49.34	%
(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.
(4) Common dividends divided by net income (loss) available for common shareholders.

Financial Summary
(In thousands except per share data)
	As of and for the
	Year Ended
	December 31, 2025				December 31, 2024
	(Unaudited)				(Audited)
Statement of Income Data:
Net interest income	$	34,947			$	29,476
Provision for credit losses on loans		2,577				7,882
(Reversal of) provision for credit losses on unfunded loan commitments		(14	)			55
Reversal of credit losses on investments		(32	)			(22	)
Non-interest income		392				3,459
Non-interest expense		23,845				29,408
Provision for income tax expense (benefit)		2,167				(195	)
Net income (loss)	$	6,796			$	(4,193	)
Selected per Common Share Data:
Basic earnings (loss) per common share	$	1.01			$	(0.62	)
Diluted earnings (loss) per common share	$	1.01			$	(0.62	)
Dividend per share	$	-			$	0.28
Book value per common share (1)	$	14.94			$	13.53
Selected Balance Sheet Data:
Assets	$	1,004,586			$	1,067,094
Loans, net		831,793				905,075
Deposits		891,111				962,562
Average assets		1,033,763				1,091,045
Average earning assets		1,000,630				1,058,766
Average shareholders' equity		98,127				99,080
Net loans charged-off		(1,783	)			(9,410	)
Nonperforming loans		25,052				27,754
Other real estate owned		2,294				4,437
Total nonperforming assets		27,346				32,191
Selected Ratios:
Return (loss) on average assets (2)		0.66	%			(0.38	%)
Return (loss) on average shareholders' equity (2)		6.93	%			(4.23	%)
Efficiency ratio (3)		67.45	%			89.31	%
Net interest margin (2)		3.49	%			2.78	%
Common equity tier 1 capital ratio		11.71	%			10.14	%
Tier 1 capital ratio		11.71	%			10.14	%
Total capital ratio		13.36	%			11.89	%
Tier 1 leverage ratio		10.37	%			8.87	%
Common dividend payout ratio (4)		0.00	%			(45.20	%)
Average shareholders' equity to average assets		9.49	%			9.08	%
Nonperforming loans to total loans		2.96	%			3.02	%
Nonperforming assets to total assets		2.72	%			3.02	%
Allowance for credit losses to total loans		1.71	%			1.49	%
Allowance for credit losses to nonperforming loans		57.83	%			49.34	%
(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.
(4) Common dividends divided by net income (loss) available for common shareholders.

Contact: Brian Reed, President and CEO, Summit State Bank (707) 568-4908

FAQ

What were Summit State Bank (SSBI) earnings for Q4 2025?

SSBI reported Q4 2025 net income of $1,067,000, or $0.16 per diluted share.

How did Summit State Bank's net interest margin (NIM) change in Q4 2025?

NIM expanded to 3.62% in Q4 2025 from 2.88% in Q4 2024 (a 74 bps increase).

What is Summit State Bank's capital position after Q4 2025?

Tier 1 leverage improved to 10.37%, above the 5% well-capitalized threshold.

How large are Summit State Bank's loans and deposits at December 31, 2025?

Net loans were $831.8M (down 8% YoY) and total deposits were $891.1M (down 7% YoY).

What is Summit State Bank's liquidity level at year-end 2025?

Total liquidity was $459.2M, representing 45.7% of total assets as of December 31, 2025.

How did credit quality change for SSBI in Q4 2025?

Non-performing assets declined to $27.3M (2.72% of assets) and there were no net charge-offs in the quarter.