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Summit State Bank Reports 15% Increase in Net Income to $4,501,000 for Second Quarter 2022 and Declaration of Dividend
来源: Nasdaq GlobeNewswire / 26 7月 2022 09:00:02 America/New_York
SANTA ROSA, Calif., July 26, 2022 (GLOBE NEWSWIRE) -- Summit State Bank (Nasdaq: SSBI) today reported net income for the quarter ended June 30, 2022 of $4,501,000 and diluted earnings per share of $0.67. This compares to net income of $3,898,000 and diluted earnings per share of $0.58 for the quarter ended June 30, 2021. Additionally, 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 on July 25, 2022 to be paid on August 18, 2022 to shareholders of record on August 11, 2022.
Net Income and Results of Operations
Net income increased $603,000 or 15% the second quarter of 2022 compared to second quarter of 2021. Net interest income increased to $10,302,000 in the second quarter of 2022 compared to $8,976,000 in the second quarter of 2021.
“Our continued increase in net income can be attributed to the Bank’s ongoing focus to grow core operations,” noted Brian Reed, President and CEO. “Throughout the pandemic and heading into a new economic environment, the Bank focuses on helping our customers through hardships while also growing core operations. We are pleased the Bank is benefitting from investing time and resources to make our business stronger and more financially sustainable.”
The net interest margin for the second quarter of 2022 was 4.36%, annualized return on average assets was 1.85% and annualized return on average equity was 21.26%. The second quarter of 2021 had a net interest margin of 4.13%, annualized return on average assets of 1.76% and annualized return on average equity of 20.18%.
Interest income increased to $11,346,000 in the second quarter of 2022 compared to $10,082,000 in the second quarter of 2021, this was an increase of 13%. The increase in interest income is attributable to a $1,156,000 increase in core loan interest yield primarily driven by increased volume, $54,000 increase in interest on deposits with banks and $46,000 increase in investment interest.
Net loans and deposits increased when comparing the second quarter of 2022 to 2021. Net loans increased 11% to $838,265,000 at June 30, 2022 compared to $753,979,000 at June 30, 2021. Total deposits increased 7% to $819,932,000 at June 30, 2022 compared to $763,953,000 at June 30, 2021. Most of the deposit increase is due to the Bank’s ongoing focus to organically grow local deposits.
Non-interest income increased in the second quarter of 2022 to $2,354,000 compared to $1,597,000 in the second quarter of 2021. The Bank recognized $1,953,000 in gains on sales of SBA guaranteed loan balances in the second quarter of 2022 compared to $1,160,000 in gains on sales of SBA guaranteed loans balances in the second quarter of 2021.
Operating expenses increased 5% in the second quarter of 2022 to $5,298,000 compared to $5,037,000 in the second quarter of 2021. The increase in expenses is primarily due to a $158,000 increase in salaries and benefits net of deferred fees and costs, $52,000 for annual equity grants, and $127,000 increase in marketing and donations.
There was one nonperforming asset for $570,000 or 0.06% of total assets at June 30, 2022 compared to $464,000 or 0.05% of total assets on June 30, 2021.
The Bank had a provision for credit loss expense of $998,000 in the second quarter of 2022. The allowance for credit losses to total loans was 1.58% on June 30, 2022 and 1.50% on June 30, 2021. Most of the increase in the allowance for credit loss was due adjusting the Bank’s qualitative factors in response to recent economic changes.
“We are focused on managing challenges that lie ahead with the local and global economy,” states Reed. “We remain focused on serving our local community. We are a reliable resource for our customers while continuing to be focused on the longer-term growth of our Bank.”
About Summit State Bank
Summit State Bank, a local community bank, has total assets of $980 million and total equity of $85 million at June 30, 2022. 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 County.
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. At the center of diversity is inclusion, collaboration, and a shared vision for delivering superior service to customers and results for shareholders. Presently, 65% of management are women and minorities with 60% represented on the Executive Management Team. Through the engagement of its team, Summit State Bank has received many esteemed awards including: Best Business Bank, Best Places to Work in the North Bay, Top Community Bank Loan Producer, Raymond James Bankers Cup, and Super Premier Performing Bank. 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
The financial results in this release are preliminary. 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, 2022 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 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.
SUMMIT STATE BANK STATEMENTS OF INCOME (In thousands except earnings per share data) Three Months Ended Six Months Ended June 30, 2022 June 30, 2021 June 30, 2022 June 30, 2021 (Unaudited) (Unaudited) (Unaudited) (Unaudited) Interest income: Interest and fees on loans $ 10,774 $ 9,618 $ 21,193 $ 19,591 Interest on deposits with banks 61 7 73 15 Interest on investment securities 442 396 826 779 Dividends on FHLB stock 69 61 134 104 Total interest income 11,346 10,082 22,226 20,489 Interest expense: Deposits 750 818 1,460 1,751 Federal Home Loan Bank advances 200 194 393 387 Junior Subordinated Debt 94 94 187 187 Total interest expense 1,044 1,106 2,040 2,325 Net interest income before provision for credit losses 10,302 8,976 20,186 18,164 Provision for credit losses on loans 988 - 1,123 335 Provision for (reversal of) credit losses on unfunded loan commitments 10 - (14 ) - Net interest income after provision for (reversal of) credit losses and unfunded loan commitments 9,304 8,976 19,077 17,829 Non-interest income: Service charges on deposit accounts 213 208 422 411 Rental income 45 88 123 175 Net gain on loan sales 1,953 1,160 3,499 1,509 Net securities gain - 49 6 56 Other income 143 92 258 142 Total non-interest income 2,354 1,597 4,308 2,293 Non-interest expense: Salaries and employee benefits 3,311 3,153 7,275 6,170 Occupancy and equipment 416 418 826 832 Other expenses 1,571 1,466 3,484 2,874 Total non-interest expense 5,298 5,037 11,585 9,876 Income before provision for income taxes 6,360 5,536 11,800 10,246 Provision for income taxes 1,859 1,638 3,364 3,031 Net income $ 4,501 $ 3,898 $ 8,436 $ 7,215 Basic earnings per common share (1) $ 0.67 $ 0.58 $ 1.26 $ 1.08 Diluted earnings per common share (1) $ 0.67 $ 0.58 $ 1.26 $ 1.08 Basic weighted average shares of common stock outstanding (1) 6,687 6,677 6,686 6,677 Diluted weighted average shares of common stock outstanding (1) 6,687 6,682 6,686 6,679 (1) Adjusted for 10% stock dividend declared; effective October 29, 2021 SUMMIT STATE BANK BALANCE SHEETS (In thousands except share data) June 30, 2022 December 31, 2021 June 30, 2021 (Unaudited) (Unaudited) (Unaudited) ASSETS Cash and due from banks $ 36,616 $ 40,699 $ 56,143 Total cash and cash equivalents 36,616 40,699 56,143 Investment securities: Available-for-sale (at fair value; amortized cost of $79,613, $69,902 and $66,666) 69,926 69,367 67,096 Total investment securities 69,926 69,367 67,096 Loans, less allowance for credit losses of $13,452, $12,329 and $11,482 838,265 820,987 753,979 Bank premises and equipment, net 5,540 5,677 5,841 Investment in Federal Home Loan Bank stock, at cost 4,737 4,320 4,320 4,119 4,119 4,119 Affordable housing tax credit investment 9,050 3,500 - Accrued interest receivable and other assets 12,532 9,411 10,145 Total assets $ 980,785 $ 958,080 $ 901,643 LIABILITIES AND SHAREHOLDERS' EQUITY Demand - non interest-bearing $ 239,813 $ 234,824 $ 232,206 Demand - interest-bearing 139,765 147,289 120,664 Savings 66,938 69,982 50,380 Money market 167,761 168,637 162,157 Time deposits that meet or exceed the FDIC insurance limit 31,062 29,255 32,535 Other time deposits 174,593 161,613 166,011 Total deposits 819,932 811,600 763,953 Federal Home Loan Bank advances 58,600 48,500 48,500 Junior subordinated debt 5,898 5,891 5,884 Affordable housing commitment 5,998 2,483 - Accrued interest payable and other liabilities 5,693 5,324 4,329 Total liabilities 896,121 873,798 822,666 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 6,687,959, 6,684,759 and 6,676,509 (1) 37,014 37,014 36,981 Retained earnings 54,470 47,644 41,693 Accumulated other comprehensive loss, net (6,820 ) (376 ) 303 Total shareholders' equity 84,664 84,282 78,977 Total liabilities and shareholders' equity $ 980,785 $ 958,080 $ 901,643 (1) Adjusted for 10% stock dividend declared; effective October 29, 2021 Financial Summary (Dollars in thousands except per share data) As of and for the As of and for the Three Months Ended Six Months Ended June 30, 2022 June 30, 2021 June 30, 2022 June 30, 2021 (Unaudited) (Unaudited) (Unaudited) (Unaudited) Statement of Income Data: Net interest income $ 10,302 $ 8,976 $ 20,186 $ 18,164 Provision for credit losses on loans 988 - 1,123 335 Provision for (Reversal of) credit losses on unfunded loan commitments 10 - (14 ) - Non-interest income 2,354 1,597 4,308 2,293 Non-interest expense 5,298 5,037 11,585 9,876 Provision for income taxes 1,859 1,638 3,364 3,031 Net income $ 4,501 $ 3,898 $ 8,436 $ 7,215 Selected per Common Share Data: Basic earnings per common share (5) $ 0.67 $ 0.58 $ 1.26 $ 1.08 Diluted earnings per common share (5) $ 0.67 $ 0.58 $ 1.26 $ 1.08 Dividend per share (5) $ 0.12 $ 0.12 $ 0.24 $ 0.24 Book value per common share (1)(5) $ 12.66 $ 13.01 $ 12.66 $ 13.01 Selected Balance Sheet Data: Assets $ 980,785 $ 901,643 $ 980,785 $ 901,643 Loans, net 838,265 753,979 838,265 753,979 Deposits 819,932 763,953 819,932 763,953 Average assets 975,422 888,439 967,308 880,752 Average earning assets 948,762 872,483 942,286 864,616 Average shareholders' equity 84,906 77,477 85,154 76,520 Nonperforming loans 570 464 570 464 Total nonperforming assets 570 464 570 464 Troubled debt restructurings (accruing) 1,027 2,160 1,027 2,160 Selected Ratios: Return on average assets (2) 1.85 % 1.76 % 1.76 % 1.65 % Return on average common shareholders' equity (2) 21.26 % 20.18 % 19.98 % 19.01 % Efficiency ratio (3) 41.86 % 47.86 % 47.31 % 48.41 % Net interest margin (2) 4.36 % 4.13 % 4.32 % 4.24 % Common equity tier 1 capital ratio 10.00 % 10.25 % 10.00 % 10.25 % Tier 1 capital ratio 10.00 % 10.25 % 10.00 % 10.25 % Total capital ratio 11.94 % 12.33 % 11.94 % 12.33 % Tier 1 leverage ratio 8.74 % 8.29 % 8.74 % 8.29 % Common dividend payout ratio (4) 17.95 % 18.68 % 19.08 % 20.19 % Average shareholders' equity to average assets 8.70 % 8.72 % 8.80 % 8.69 % Nonperforming loans to total loans 0.07 % 0.06 % 0.07 % 0.06 % Nonperforming assets to total assets 0.06 % 0.05 % 0.06 % 0.05 % Allowance for credit losses to total loans 1.58 % 1.50 % 1.58 % 1.50 % Allowance for credit losses to nonperforming loans 2360.36 % 2476.35 % 2360.36 % 2476.35 % (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 available for common shareholders. (5) Adjusted for 10% stock dividend declared; effective October 29, 2021 Contact: Brian Reed, President and CEO, Summit State Bank (707) 568-4908
