Summit State Bank Reports Third Quarter 2026 Financial Results
Lower funding costs supported operating income, while higher loan credit-loss provisions weighed on quarterly earnings.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Rhea-AI Summary
Summit State Bank (Nasdaq: SSBI) reported a third-quarter 2026 net loss of $1,098,000, reversing a profit a year earlier. The loss was $0.16 per diluted share, compared with earnings of $0.12 a year earlier and a $0.19 loss in the second quarter. Loan credit-loss provisions were $5,688,000, versus $2,709,000 a year earlier.
Net interest margin was 3.87%, above 3.51% a year earlier but below 3.95% in the second quarter. Non-GAAP income before taxes and credit-loss provisions rose to $4,031,000 from $4,008,000 a year earlier. At September 30, nonperforming assets totaled $20,676,000, down from $27,978,000 a year earlier. Net loans declined 11% year over year to $745,351,000, and deposits fell 7% to $826,610,000. The Tier 1 leverage capital ratio rose to 11.03% from 10.24% a year earlier, while book value per share fell to $14.60 from $14.73.
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Positive
- Moderate pointNet interest margin of 3.87% exceeded 3.51% a year earlier but trailed 3.95% in second-quarter 2026.
- Moderate pointInterest expense fell 21.0% year over year to $4,388,000 in third-quarter 2026.
- Moderate pointNonperforming assets declined to $20,676,000 at September 30, 2026, from $27,978,000 a year earlier and $20,757,000 sequentially.
- Moderate pointNet charge-offs declined to $498,000 from $1,800,000 a year earlier and $8,655,000 in second-quarter 2026.
- Moderate pointTier 1 leverage ratio reached 11.03%, versus 10.24% a year earlier, 10.84% sequentially and the 5% well-capitalized minimum.
5 minor points
- Minor pointNon-GAAP income before taxes and credit-loss provisions rose to $4,031,000 from $4,008,000 a year earlier and $3,957,000 sequentially.
- Minor pointNet interest income before credit-loss provisions reached $8,956,000 versus $8,666,000 a year earlier, but fell from $9,342,000 sequentially.
- Minor pointDeposit costs declined to 2.03% in third-quarter 2026 from 2.38% a year earlier.
- Minor pointTotal liquidity was $427,221,000, or 45.6% of assets, including available borrowing capacity at September 30, 2026.
- Minor pointNoninterest-bearing demand deposits increased 3% year over year, representing 23% of deposits at September 30, 2026.
Negative
- Major pointLoan credit-loss provisions were $5,688,000, versus $2,709,000 a year earlier and $5,924,000 in second-quarter 2026.
- Moderate pointThird-quarter net loss was $1,098,000, versus $818,000 income a year earlier; it narrowed from $1,307,000 sequentially.
- Moderate pointInterest and dividend income fell 6.2% year over year to $13,344,000 in third-quarter 2026.
- Moderate pointNet loans fell 11% year over year to $745,351,000 at September 30, 2026, and 0.1% sequentially.
- Moderate pointDeposits fell 7% year over year to $826,610,000 at September 30, 2026, and 2% sequentially.
11 minor points
- Minor pointGross charge-offs of $507,000 affected two relationships; a new $465,000 commercial relationship entered nonperforming assets.
- Minor pointNoninterest income fell to $714,000 in third-quarter 2026 from $887,000 a year earlier.
- Minor pointSBA loan-sale gains declined to $230,000 in third-quarter 2026 from $308,000 a year earlier.
- Minor pointDeposit-account service charges decreased $100,000 year over year in third-quarter 2026.
- Minor pointOperating expenses increased to $5,639,000 from $5,545,000 a year earlier, although they declined sequentially.
- Minor pointSavings, NOW and money market deposits fell 3% year over year, representing 54% of September 30, 2026 deposits.
- Minor pointTime deposits fell 22% year over year, representing 23% of September 30, 2026 deposits.
- Minor pointShareholders’ equity declined to $98,830,000, versus $99,728,000 a year earlier and $101,357,000 at June 30, 2026.
- Minor pointBook value per share fell to $14.60, versus $14.73 a year earlier and $14.98 sequentially.
- Minor pointAnnualized returns turned negative: assets lost 0.46% and equity lost 4.24%, versus positive 0.32% and 3.25% a year earlier.
- Minor pointPast-due loans reached 0.13% of total loans at September 30, 2026, versus 0.12% a year earlier.
News Explained
The Bank recorded
Details
News Market Reaction – SSBI
On Oct 27, the day this news came out, SSBI closed 0.17% above the previous close.
Data tracked by StockTitan Argus for the Oct 27 session.
Key Figures
- Net loss
- $1,098,000; $0.16 loss per diluted share
- Third quarter 2026; compared with $818,000 net income and $0.12 earnings per diluted share in third quarter 2025
- Provision for credit losses on loans
- $5,688,000
- Third quarter 2026
- Pre-tax, pre-provision income
- $4,031,000
- Third quarter 2026; compared with $4,008,000 in third quarter 2025 and $3,957,000 in second quarter 2026
- Net interest margin
- 3.87%
- Third quarter 2026; compared with 3.51% in third quarter 2025 and 3.95% in second quarter 2026
- Nonperforming assets
- $20,676,000
- At September 30, 2026; compared with $27,978,000 at September 30, 2025 and $20,757,000 at June 30, 2026
- Tier 1 Leverage ratio
- 11.03%
- At September 30, 2026; compared with 10.24% at September 30, 2025 and 10.84% at June 30, 2026
- Total liquidity
- $427,221,000, or 45.6% of total assets
- As of September 30, 2026
Previous Earnings Reports
-
Reported a net loss tied to credit-loss provisions and review of higher-risk credits, a process also cited this quarter.
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Key Terms
net interest margin financial
tier 1 leverage ratio financial
nonperforming assets financial
gaap financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
SANTA ROSA, Calif., Oct. 27, 2026 (GLOBE NEWSWIRE) -- Summit State Bank (the “Bank”) (Nasdaq: SSBI) today reported a net loss of
Pre-tax, pre-provision income1 was
“Our third quarter core operating profitability has remained strong as demonstrated by an improved net interest margin and continuing to manage operating expense levels.” said Brian Reed, President and Chief Executive Officer. “We did recognize charge-offs and increased provisions during the quarter as we worked to resolve several higher risk credits. These actions reflect our commitment to addressing problem assets decisively and strengthening the balance sheet. Based on our demonstrated strong net operating income coupled with our growth plans, makes us confident in our long-term strategy and intend to build on the core operating results, while reducing the level of problem assets.”
Third Quarter 2026 Financial Highlights (at or for the three months ended September 30, 2026)
- Net loss was
$1,098,000 , or$0.16 loss per diluted share, compared to net income of$818,000 , or$0.12 earnings per diluted share, for the quarter ended September 30, 2025, and a net loss of$1,307,000 , or$0.19 loss per diluted share for the quarter ended June 30, 2026. - Pre-tax, pre-provision income was
$4,031,000 for the quarter ended September 30, 2026, compared to$4,008,000 for the quarter ended September 30, 2025, and$3,957,000 for the quarter ended June 30, 2026. - Net interest margin was
3.87% in the third quarter of 2026 compared to3.51% in the third quarter of 2025 and3.95% in the second quarter of 2026. - Nonperforming assets were
$20,676,000 at September 30, 2026, compared to$27,978,000 at September 30, 2025, and$20,757,000 at June 30, 2026. - The Bank’s Tier 1 Leverage ratio increased to
11.03% at September 30, 2026, compared to10.24% at September 30, 2025, and10.84% at June 30, 2026. - Annualized loss on average assets and annualized loss on average equity for the third quarter of 2026 were
0.46% and4.24% , respectively. These compared to annualized return on average assets and annualized return on average equity for the third quarter of 2025 of0.32% and3.25% , respectively. - The allowance for credit losses to total loans held for investment was
2.36% at September 30, 2026, compared to1.65% at September 30, 2025, and1.69% at June 30, 2026. - The Bank maintained total liquidity of
$427,221,000 , or45.6% of total assets as of September 30, 2026. This includes on balance sheet liquidity (cash and equivalents and unpledged available-for-sale securities) of$150,416,000 or16.0% of total assets, plus available borrowing capacity of$276,805,000 or29.5% 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
11% to$745,351,000 at September 30, 2026, compared to$838,402,000 at September 30, 2025, and decreased0.1% compared to$746,099,000 at June 30, 2026. - Total deposits decreased
7% to$826,610,000 at September 30, 2026, compared to$888,784,000 at September 30, 2025, and decreased2% when compared to$846,129,000 at June 30, 2026.
- Net loans held for investment decreased
- Book value per share was
$14.60 at September 30, 2026, compared to$14.73 at September 30, 2025, and$14.98 at June 30, 2026.
Operating Results
The Bank’s net interest margin was
Interest and dividend income decreased
Interest expense decreased
Noninterest income decreased in the third quarter of 2026 to
Operating expenses increased in the third quarter of 2026 to
Balance Sheet Review
During the third 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
Net loans held for investment were
Total deposits were
Shareholders’ equity was
The Bank’s Tier 1 Leverage ratio continues to exceed the minimum of
Credit Quality
Nonperforming assets were
“We remain proactive in managing these exposures, and the remainder of our loan portfolio continues to demonstrate strong performance. Past due loans stood at
There was
For the third quarter of 2026, the Bank recorded a provision for credit losses on loans held for investment of
The allowance for credit losses to total loans held for investment was
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
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 September 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, loan 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 creditworthiness, 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 financial condition and 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 | ||||||||||||
| September 30, 2026 | June 30, 2026 | September 30, 2025 | ||||||||||
| (In thousands) | ||||||||||||
| Reconciliation of non-GAAP pre-tax, pre-provision income | ||||||||||||
| Net (loss) income | $ | (1,098 | ) | $ | (1,307 | ) | $ | 818 | ||||
| Excluding provision for credit losses | 5,692 | 5,902 | 2,737 | |||||||||
| Excluding provision for income tax expense (benefit) | (563 | ) | (638 | ) | 453 | |||||||
| Pre-tax, pre-provision income (non-GAAP) | $ | 4,031 | $ | 3,957 | $ | 4,008 | ||||||
| SUMMIT STATE BANK | ||||||||||||
| STATEMENTS OF INCOME | ||||||||||||
| (In thousands except earnings per share data) | ||||||||||||
| Three Months Ended | ||||||||||||
| September 30, 2026 | June 30, 2026 | September 30, 2025 | ||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | ||||||||||
| Interest and dividend income: | ||||||||||||
| Interest and fees on loans | $ | 11,882 | $ | 12,691 | $ | 13,067 | ||||||
| Interest on deposits with banks | 877 | 926 | 539 | |||||||||
| Interest on investment securities | 441 | 439 | 484 | |||||||||
| Dividends on FHLB stock | 144 | 11 | 130 | |||||||||
| Total interest and dividend income | 13,344 | 14,067 | 14,220 | |||||||||
| Interest expense: | ||||||||||||
| Deposits | 4,272 | 4,608 | 5,373 | |||||||||
| Federal Home Loan Bank advances | - | - | 54 | |||||||||
| Junior subordinated debt | 116 | 117 | 127 | |||||||||
| Total interest expense | 4,388 | 4,725 | 5,554 | |||||||||
| Net interest income before provision for (reversal of) credit losses | 8,956 | 9,342 | 8,666 | |||||||||
| Provision for credit losses on loans | 5,688 | 5,924 | 2,709 | |||||||||
| Provision for (reversal of) credit losses on unfunded loan commitments | 5 | (20 | ) | 49 | ||||||||
| Reversal of credit losses on investments | (1 | ) | (2 | ) | (21 | ) | ||||||
| Net interest income after provision for (reversal of) credit losses on loans, unfunded loan commitments and investments | 3,264 | 3,440 | 5,929 | |||||||||
| Non-interest income: | ||||||||||||
| Service charges on deposit accounts | 138 | 267 | 238 | |||||||||
| Rental income | 54 | 54 | 45 | |||||||||
| Net gain on loan sales | 230 | 308 | 308 | |||||||||
| Net loss on securities | - | - | (7 | ) | ||||||||
| Other income | 292 | 295 | 303 | |||||||||
| Total non-interest income | 714 | 924 | 887 | |||||||||
| Non-interest expense: | ||||||||||||
| Salaries and employee benefits | 3,449 | 3,752 | 3,476 | |||||||||
| Occupancy and equipment | 392 | 358 | 435 | |||||||||
| Other expenses | 1,798 | 2,199 | 1,634 | |||||||||
| Total non-interest expense | 5,639 | 6,309 | 5,545 | |||||||||
| (Loss) income before provision for income taxes | (1,661 | ) | (1,945 | ) | 1,271 | |||||||
| Provision for income tax (benefit) expense | (563 | ) | (638 | ) | 453 | |||||||
| Net (loss) income | $ | (1,098 | ) | $ | (1,307 | ) | $ | 818 | ||||
| Basic (loss) earnings per common share | $ | (0.16 | ) | $ | (0.19 | ) | $ | 0.12 | ||||
| Diluted (loss) earnings per common share | $ | (0.16 | ) | $ | (0.19 | ) | $ | 0.12 | ||||
| Basic weighted average shares of common stock outstanding | 6,747,800 | 6,747,496 | 6,734,158 | |||||||||
| Diluted weighted average shares of common stock outstanding | 6,747,800 | 6,747,496 | 6,734,158 | |||||||||
| SUMMIT STATE BANK | ||||||||
| STATEMENTS OF INCOME | ||||||||
| (In thousands except earnings per share data) | ||||||||
| Nine Months Ended | ||||||||
| September 30, 2026 | September 30, 2025 | |||||||
| (Unaudited) | (Unaudited) | |||||||
| Interest and dividend income: | ||||||||
| Interest and fees on loans | $ | 36,953 | $ | 40,446 | ||||
| Interest on deposits with banks | 2,701 | 1,656 | ||||||
| Interest on investment securities | 1,349 | 1,502 | ||||||
| Dividends on FHLB stock | 453 | 388 | ||||||
| Total interest and dividend income | 41,456 | 43,992 | ||||||
| Interest expense: | ||||||||
| Deposits | 13,752 | 17,533 | ||||||
| Federal Home Loan Bank advances | 5 | 94 | ||||||
| Junior subordinated debt | 356 | 389 | ||||||
| Total interest expense | 14,113 | 18,016 | ||||||
| Net interest income before provision for (reversal of) credit losses | 27,343 | 25,976 | ||||||
| Provision for credit losses on loans | 12,669 | 2,132 | ||||||
| Reversal of credit losses on unfunded loan commitments | (24 | ) | (44 | ) | ||||
| Reversal of credit losses on investments | (3 | ) | (33 | ) | ||||
| Net interest income after provision for (reversal of) credit losses on loans, unfunded loan commitments and investments | 14,701 | 23,921 | ||||||
| Non-interest income: | ||||||||
| Service charges on deposit accounts | 660 | 678 | ||||||
| Rental income | 162 | 159 | ||||||
| Net gain on loan sales | 1,035 | 360 | ||||||
| Net loss on securities | - | (12 | ) | |||||
| Other income | 794 | 609 | ||||||
| Total non-interest income | 2,651 | 1,794 | ||||||
| Non-interest expense: | ||||||||
| Salaries and employee benefits | 11,443 | 11,104 | ||||||
| Occupancy and equipment | 1,105 | 1,323 | ||||||
| Other expenses | 6,137 | 5,676 | ||||||
| Total non-interest expense | 18,685 | 18,103 | ||||||
| (Loss) income before provision for income taxes | (1,333 | ) | 7,612 | |||||
| Provision for income tax (benefit) expense | (602 | ) | 1,883 | |||||
| Net (loss) income | $ | (731 | ) | $ | 5,729 | |||
| Basic (loss) earnings per common share | $ | (0.11 | ) | $ | 0.85 | |||
| Diluted (loss) earnings per common share | $ | (0.11 | ) | $ | 0.85 | |||
| Basic weighted average shares of common stock outstanding | 6,728,170 | 6,719,127 | ||||||
| Diluted weighted average shares of common stock outstanding | 6,728,170 | 6,719,127 | ||||||
| SUMMIT STATE BANK | ||||||||||||
| BALANCE SHEETS | ||||||||||||
| (In thousands except share data) | ||||||||||||
| September 30, 2026 | June 30, 2026 | September 30, 2025 | ||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | ||||||||||
| ASSETS | ||||||||||||
| Cash and due from banks | $ | 91,340 | $ | 112,553 | $ | 57,952 | ||||||
| Total cash and cash equivalents | 91,340 | 112,553 | 57,952 | |||||||||
| Investment securities: | ||||||||||||
| Available-for-sale, less allowance for credit losses of | 59,076 | 62,543 | 66,688 | |||||||||
| Loans held for investment, less allowance for credit losses of | 745,351 | 746,099 | 838,402 | |||||||||
| Bank premises and equipment, net | 4,864 | 4,820 | 4,893 | |||||||||
| 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 | 5,846 | 6,055 | 6,713 | |||||||||
| Accrued interest receivable and other assets | 22,785 | 19,530 | 21,548 | |||||||||
| Total assets | $ | 937,445 | $ | 959,783 | $ | 1,006,522 | ||||||
| LIABILITIES AND | ||||||||||||
| SHAREHOLDERS' EQUITY | ||||||||||||
| Deposits: | ||||||||||||
| Demand - non interest-bearing | $ | 191,334 | $ | 186,424 | $ | 185,258 | ||||||
| Demand - interest-bearing | 223,622 | 222,261 | 215,522 | |||||||||
| Savings | 38,493 | 41,299 | 39,659 | |||||||||
| Money market | 181,032 | 184,116 | 203,126 | |||||||||
| Time deposits that meet or exceed the FDIC insurance limit | 55,228 | 65,310 | 73,162 | |||||||||
| Other time deposits | 136,901 | 146,719 | 172,057 | |||||||||
| Total deposits | 826,610 | 846,129 | 888,784 | |||||||||
| Federal Home Loan Bank advances | - | - | 5,500 | |||||||||
| Junior subordinated debt | 5,960 | 5,956 | 5,945 | |||||||||
| Affordable housing commitment | 458 | 458 | 511 | |||||||||
| Accrued interest payable and other liabilities | 5,587 | 5,883 | 6,054 | |||||||||
| Total liabilities | 838,615 | 858,426 | 906,794 | |||||||||
| 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, 6,766,616 and 6,771,526 | 38,087 | 38,039 | 37,897 | |||||||||
| Retained earnings | 68,941 | 70,038 | 68,602 | |||||||||
| Accumulated other comprehensive loss, net | (8,198 | ) | (6,720 | ) | (6,771 | ) | ||||||
| Total shareholders' equity | 98,830 | 101,357 | 99,728 | |||||||||
| Total liabilities and shareholders' equity | $ | 937,445 | $ | 959,783 | $ | 1,006,522 | ||||||
| Financial Summary | ||||||||||||
| (Dollars in thousands except per share data) | ||||||||||||
| As of and for the | ||||||||||||
| Three Months Ended | ||||||||||||
| September 30, 2026 | June 30, 2026 | September 30, 2025 | ||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | ||||||||||
| Statement of Income Data: | ||||||||||||
| Net interest income | $ | 8,956 | $ | 9,342 | $ | 8,666 | ||||||
| Provision for credit losses on loans | 5,688 | 5,924 | 2,709 | |||||||||
| Provision for (reversal of) credit losses on unfunded loan commitments | 5 | (20 | ) | 49 | ||||||||
| Reversal of credit losses on investments | (1 | ) | (2 | ) | (21 | ) | ||||||
| Non-interest income | 714 | 924 | 887 | |||||||||
| Non-interest expense | 5,639 | 6,309 | 5,545 | |||||||||
| Provision for income tax (benefit) expense | (563 | ) | (638 | ) | 453 | |||||||
| Net (loss) income | $ | (1,098 | ) | $ | (1,307 | ) | $ | 818 | ||||
| Selected per Common Share Data: | ||||||||||||
| Basic (loss) earnings per common share | $ | (0.16 | ) | $ | (0.19 | ) | $ | 0.12 | ||||
| Diluted (loss) earnings per common share | $ | (0.16 | ) | $ | (0.19 | ) | $ | 0.12 | ||||
| Book value per common share (1) | $ | 14.60 | $ | 14.98 | $ | 14.73 | ||||||
| Selected Balance Sheet Data: | ||||||||||||
| Assets | $ | 937,445 | $ | 959,783 | $ | 1,006,522 | ||||||
| Loans held for investment, net | 745,351 | 746,099 | 838,402 | |||||||||
| Deposits | 826,610 | 846,129 | 888,784 | |||||||||
| Average assets | 948,531 | 974,347 | 1,014,576 | |||||||||
| Average earning assets | 918,985 | 948,059 | 980,157 | |||||||||
| Average shareholders' equity | 102,651 | 104,317 | 99,829 | |||||||||
| Nonperforming loans | 18,382 | 18,463 | 23,541 | |||||||||
| Net loans charged-off | (498 | ) | (8,655 | ) | (1,800 | ) | ||||||
| Other real estate owned | 2,294 | 2,294 | 4,437 | |||||||||
| Total nonperforming assets | 20,676 | 20,757 | 27,978 | |||||||||
| Selected Ratios: | ||||||||||||
| (Loss) return on average assets (2) | (0.46 | )% | (0.54 | )% | 0.32 | % | ||||||
| (Loss) return on average common shareholders' equity (2) | (4.24 | )% | (5.03 | )% | 3.25 | % | ||||||
| Efficiency ratio (3) | 58.31 | % | 61.46 | % | 58.00 | % | ||||||
| Net interest margin (2) | 3.87 | % | 3.95 | % | 3.51 | % | ||||||
| Common equity tier 1 capital ratio | 12.99 | % | 13.10 | % | 11.55 | % | ||||||
| Tier 1 capital ratio | 12.99 | % | 13.10 | % | 11.55 | % | ||||||
| Total capital ratio | 14.55 | % | 14.80 | % | 13.20 | % | ||||||
| Tier 1 leverage ratio | 11.03 | % | 10.84 | % | 10.24 | % | ||||||
| Average shareholders' equity to average assets | 10.82 | % | 10.71 | % | 9.84 | % | ||||||
| Nonperforming loans to total loans held for investment | 2.41 | % | 2.43 | % | 2.76 | % | ||||||
| Nonperforming assets to total assets | 2.21 | % | 2.16 | % | 2.78 | % | ||||||
| Allowance for credit losses to total loans held for investment | 2.36 | % | 1.69 | % | 1.65 | % | ||||||
| Allowance for credit losses to nonperforming loans | 97.94 | % | 69.40 | % | 59.65 | % | ||||||
| (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 | ||||||||
| Nine Months Ended | ||||||||
| September 30, 2026 | September 30, 2025 | |||||||
| (Unaudited) | (Unaudited) | |||||||
| Statement of Income Data: | ||||||||
| Net interest income | $ | 27,343 | $ | 25,976 | ||||
| Provision for credit losses on loans | 12,669 | 2,132 | ||||||
| Reversal of credit losses on unfunded loan commitments | (24 | ) | (44 | ) | ||||
| Reversal of credit losses on investments | (3 | ) | (33 | ) | ||||
| Non-interest income | 2,651 | 1,794 | ||||||
| Non-interest expense | 18,685 | 18,103 | ||||||
| Provision for income tax (benefit) expense | (602 | ) | 1,883 | |||||
| Net (loss) income | $ | (731 | ) | $ | 5,729 | |||
| Selected per Common Share Data: | ||||||||
| Basic (loss) earnings per common share | $ | (0.11 | ) | $ | 0.85 | |||
| Diluted (loss) earnings per common share | $ | (0.11 | ) | $ | 0.85 | |||
| Book value per common share (1) | $ | 14.60 | $ | 14.73 | ||||
| Selected Balance Sheet Data: | ||||||||
| Assets | $ | 937,445 | $ | 1,006,522 | ||||
| Loans held for investment, net | 745,351 | 838,402 | ||||||
| Deposits | 826,610 | 888,784 | ||||||
| Average assets | 974,777 | 1,040,298 | ||||||
| Average earning assets | 946,743 | 1,006,845 | ||||||
| Average shareholders' equity | 103,509 | 96,885 | ||||||
| Nonperforming loans | 18,382 | 23,541 | ||||||
| Net loans charged-off | (9,153 | ) | (1,783 | ) | ||||
| Other real estate owned | 2,294 | 4,437 | ||||||
| Total nonperforming assets | 20,676 | 27,978 | ||||||
| Selected Ratios: | ||||||||
| (Loss) return on average assets (2) | (0.10 | )% | 0.74 | % | ||||
| (Loss) return on average common shareholders' equity (2) | (0.94 | )% | 7.91 | % | ||||
| Efficiency ratio (3) | 62.30 | % | 65.16 | % | ||||
| Net interest margin (2) | 3.86 | % | 3.45 | % | ||||
| Common equity tier 1 capital ratio | 12.99 | % | 11.55 | % | ||||
| Tier 1 capital ratio | 12.99 | % | 11.55 | % | ||||
| Total capital ratio | 14.55 | % | 13.20 | % | ||||
| Tier 1 leverage ratio | 11.03 | % | 10.24 | % | ||||
| Average shareholders' equity to average assets | 10.62 | % | 9.31 | % | ||||
| Nonperforming loans to total loans held for investment | 2.41 | % | 2.76 | % | ||||
| Nonperforming assets to total assets | 2.21 | % | 2.78 | % | ||||
| Allowance for credit losses to total loans held for investment | 2.36 | % | 1.65 | % | ||||
| Allowance for credit losses to nonperforming loans | 97.94 | % | 59.65 | % | ||||
| (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
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What were Summit State Bank’s third-quarter 2026 earnings?
Summit State Bank reported a $1,098,000 net loss, or $0.16 per diluted share, for the quarter ended September 30, 2026. That compared with net income of $818,000, or $0.12 per diluted share, a year earlier. The second-quarter 2026 loss was $1,307,000, or $0.19 per diluted share.
How much did Summit State Bank set aside for loan credit losses in third-quarter 2026?
Summit State Bank recorded $5,688,000 in loan credit-loss provisions in third-quarter 2026, compared with $2,709,000 a year earlier. Its allowance for credit losses was 2.36% of loans held for investment at September 30, 2026, versus 1.69% at June 30, 2026, and 1.65% a year earlier.
How much of Summit State Bank’s loan portfolio is commercial real estate?
Commercial real estate represented 79% of Summit State Bank’s loan portfolio at September 30, 2026. Approximately 34%, or $202,871,000, of that category was owner occupied; the remaining 66%, or $399,530,000, was non-owner occupied. Office-space loans totaled $89,973,000, or 12% of the total loan portfolio.
What makes up Summit State Bank’s liquidity at September 30, 2026?
Summit State Bank’s liquidity included $150,416,000 on its balance sheet and $276,805,000 of available borrowing capacity. The balance-sheet portion consisted of cash and equivalents and unpledged available-for-sale securities, representing 16.0% of total assets. Available borrowing capacity represented 29.5% of total assets.