Summit State Bank Reports Net Income for First Quarter 2016 and Declaration of Dividend

SANTA ROSA, Calif., April 26, 2016 (GLOBE NEWSWIRE) -- Summit State Bank (Nasdaq:SSBI) today reported net income for the quarter ended March 31, 2016 of $1,328,000 and diluted earnings per share of $0.27.  A quarterly dividend of $0.12 per share was declared for common shareholders.

Dividend

The Board of Directors declared a $0.12 per share quarterly dividend to be paid on May 24, 2016 to shareholders of record on May 18, 2016.

Net Income and Results of Operations

“We continue to generate strong performance as a result of the high quality of our community banking team and their deep care of our local Sonoma County community. We are continuing to attract and expand full banking relationships by our hard earned reputation for providing the best customer service experience through The Summit Way brand of community banking. This has resulted in Summit being named The Best Company to do Business with in Sonoma County – Gold Medal Winner by the readers of Northbay Biz magazine,” said James Brush, President and CEO.

For the quarter ended March 31, 2016, Summit State Bank had net income available for common stockholders of $1,328,000 and diluted earnings per share of $0.27 compared to $1,688,000 in net income available for common stockholders, or $0.35 diluted earnings per share, for the same quarter in 2015.

The first quarter of 2016 included net securities gains of $133,000 which were realized when bonds in the Bank’s portfolio received early calls. The first quarter of 2015 included a gain on sale of foreclosed property of $1,125,000.

Annualized return on average assets for the first quarter of 2016 was 1.02% and annualized return on average equity was 9.2%. The Bank’s efficiency ratio was 57.7% and the net interest margin was 3.68% during the first quarter of 2016. The first quarter of 2015, with the benefit of the $1,125,000 gain on foreclosed property, had an annualized return on average assets of 1.51%, annualized return on average equity of 12.6%, efficiency ratio of 48.6% and net interest margin of 3.75%.

Net interest income increased 13% between the quarters to $4,703,000 in 2016 compared to $4,155,000 in the first quarter of 2015. The increase was primarily due to higher volume of loans which offset the decline in the net interest margin. Net loans increased to $360 million at March 31, 2016 compared to $292 million at March 31, 2015.

“We are experiencing nice loan activity in line with 2015 growth. This is due to our strong team’s well established reputation for providing excellent customer service with prompt turnaround to our expanding client base through our Summit Way culture and the current vibrant economy in Sonoma County. We are deeply committed to our local Sonoma County community and look forward to another great year of helping it flourish,” said Brandy Seppi, Chief Credit Officer and Executive Vice President.

Deposits increased 11% between March 31, 2016 and 2015, with the increase primarily in demand deposit accounts which increased 19% at March 31, 2016 over March 31, 2015.

Nonperforming assets increased to $2,690,000 and represented 0.52% of assets at March 31, 2016 compared to $1,631,000 or 0.34% at March 31, 2015. The increase was due to three loans added to nonperforming during the first quarter of 2016 which are secured by real property with adequate values.

Total assets at March 31, 2016 were $522 million, a 10% increase over the $474 million on March 31, 2015.

About Summit State Bank

Summit State Bank, a local community bank, has total assets of $522 million and total equity of $59 million at March 31, 2016. Headquartered in Sonoma County, the Bank specializes in providing exceptional customer service and customized financial solutions to aid in the success of local small businesses and nonprofits throughout Sonoma, Napa, San Francisco, and Marin Counties. 

Summit State Bank’s workforce resembles the diverse community it serves.  Presently, 80% of management are women and minorities with 50% represented on the Executive Management Team. Through the inclusion and engagement of its workforce, Summit State Bank has earned many prestigious awards including: Best Company to do Business with in Sonoma County by the Northbay Biz magazine; Best Places to Work in the North Bay by the North Bay Business Journal; Super Performing Bank by Findley Reports; and Top 75 Corporate Philanthropists in the San Francisco Bay Area by the San Francisco Business Times. Summit State Bank’s stock is traded on the Nasdaq Global Market under the symbol SSBI. Further information can be found at www.summitstatebank.com.

Forward-looking Statements

Except for historical information contained herein, the statements contained in this news release, are forward-looking statements within the meaning of the “safe harbor” provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended.  This release may contain forward-looking statements that are subject to risks and uncertainties. Such risks and uncertainties may include but are not necessarily limited to fluctuations in interest rates, inflation, government regulations and general economic conditions, and competition within the business areas in which the Bank will be conducting its operations, including the real estate market in California and other factors beyond the Bank’s control.  Such risks and uncertainties could cause results for subsequent interim periods or for the entire year to differ materially from those indicated.  You should not place undue reliance on the forward-looking statements, which reflect management’s view only as of the date hereof.  The Bank undertakes no obligation to publicly revise these forward-looking statements to reflect subsequent events or circumstances.