Summit State Bank Reports Third Quarter 2026 Financial Results
Key Highlights
- ➤Summit State Bank (SSBI) posted a $1.098 million third-quarter net loss.
- ➤$5.688 million loan-credit-loss provision drove the quarterly loss.
- ➤Pre-tax, pre-provision income rose to $4.031 million from $4.008 million.
- ➤Net interest margin expanded to 3.87% from 3.51% year over year.
- ➤Nonperforming assets declined to $20.676 million from $27.978 million year over year.
Expert Statements
Brian Reed, President and Chief Executive Officer of Summit State Bank
“Our third quarter core operating profitability has remained strong as demonstrated by an improved net interest margin and continuing to manage operating expense levels.”
Brian Reed, President and Chief Executive Officer of Summit State Bank
“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.”
Brian Reed, President and Chief Executive Officer of Summit State Bank
“Our net interest margin expanded 36 basis points compared to the third quarter of last year. This improvement was driven by a lower cost of funds, as we repriced deposits, along with the continued repricing of our loan portfolio at higher yields. A reduction in nonperforming loans also contributed, as fewer nonaccrual balances weighed on our interest income. These increases were partially offset by lower average loan balances during the third quarter. We believe the combination of disciplined funding costs and ongoing loan repricing positions us well to sustain margin performance”
Brian Reed, President and Chief Executive Officer of Summit State Bank
“Operating expenses for the third quarter increased modestly compared to the same period last year, even though salaries and employee benefits were lower. On a linked quarter basis, expenses declined, as we began to realize efficiencies from our integration efforts and continued to make deliberate decisions about where we invest. These savings were achieved without compromising the level of service our customers expect from us. We remain committed to disciplined expense management, which we view as a key driver of improved operating leverage and long-term shareholder value”
Brian Reed, President and Chief Executive Officer of Summit State Bank
“We remain proactive in managing these exposures, and the remainder of our loan portfolio continues to demonstrate strong performance. Past due loans stood at 0.13% of total loans at September 30, 2026, compared to 0.12% at September 30, 2025”
SANTA ROSA, Calif., Oct. 27, 2026 (GLOBE NEWSWIRE) -- Summit State Bank (the “Bank”) (Nasdaq: SSBI) today reported a net loss of $1,098,000, or $0.16 loss per diluted share for the third quarter ended September 30, 2026, compared to net income of $818,000, or $0.12 earnings per diluted share for the third quarter ended September 30, 2025. The current quarter's results were impacted by a $5,688,000 provision for credit losses on loans. During the third quarter of 2026, the Bank also recognized $507,000 in gross charge-offs as part of a comprehensive review of certain higher-risk credits and obtaining new information pertaining to collateral values. These actions reflect the Board's and management's ongoing efforts to address identified credit risks and pursue appropriate resolution strategies.
Pre-tax, pre-provision income(1) 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. This trend of increasing pre-tax, pre-provision income is driven by improvement in net interest margin and management of expenses which offset declining asset balances.
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