updated 1/27/2011 6:17:40 PM ET 2011-01-27T23:17:40

SANTA ROSA, Calif., Jan. 27, 2011 (GLOBE NEWSWIRE) -- Summit State Bank (Nasdaq:SSBI) today reported net income for the year ended December 31, 2010 of $1,807,000 or $0.26 per common share.

Net Income and Results of Operations

The Bank had net income of $1,807,000 and net income available for common stockholders, which deducts the preferred dividends, of $1,255,000, or $0.26 per diluted share, for the year ended December 31, 2010 compared to net income of $2,081,000 and net income available for common stockholders of $1,571,000, or $0.33 per diluted share, for the year ended December 31, 2009. Net income available for common stockholders and diluted earnings per share for the quarter ended December 31, 2010 were $298,000 and $0.06 compared to $218,000 and $0.05 for the same period in 2009.

"The Bank's core operating performance continues to strengthen, even in light of additional loan loss provisions," said Thomas Duryea, President and CEO.

Net interest income was $15,333,000 for 2010, an increase of $240,000 compared to 2009 and the provision for loan losses expense increased by $210,000 to $3,860,000 in 2010 compared to $3,650,000 in 2009.

The Bank's net interest margin was 4.55% for the year ended December 31, 2010, compared to 4.47% in 2009. For the fourth quarter of 2010, the Bank's net interest margin was 4.45% compared to 4.56% for the fourth quarter of 2009.

The Bank's efficiency ratio, which expresses operating costs as a percentage of revenues, was 58% for the year 2010 compared to 56% in 2009. The efficiency ratio includes expenses related to problem loan monitoring and resolution.

Core deposits, defined as demand, savings and money market deposits, increased 8.2% to $101,927,000 at December 31, 2010 from $94,184,000 at December 31, 2009. "Our focus over the past three years on building our demand and money market account totals continues to show success despite the difficult environment. Non-interest-bearing deposits increased 50% or $7.9 million to $23.6 million at December 31, 2010 compared to December 31, 2009," said Dennis Kelley, Chief Financial Officer.

The Bank's regulatory capital remains well above the required capital ratios with a Tier 1 capital leverage ratio of 14.6%, a Tier 1 risk-based capital ratio of 18.6% and a Total risk-based capital ratio of 19.8% at December 31, 2010.

Nonperforming assets at December 31, 2010 included $12,713,000 in loans on non-accrual or past due 90 days or more, and $759,000 in foreclosed real estate. This compares to nonperforming assets of $14,104,000 at September 30, 2010 and $11,697,000 at December 31, 2009.

The allowance for loan losses was $6,058,000 at December 31, 2010 compared to $4,737,000 at December 31, 2009. The ratio of the allowance for loan losses to total loans was 2.12% at December 31, 2010 compared to 2.37% of total loans at September 30, 2010 and 1.62% at December 31, 2009. Changes in the allowance for loan losses between December 31, 2010 and 2009 included provision for loan losses expense of $3,860,000 and net loan charge-offs of $2,539,000.

Total assets increased to $347,933,000 at December 31, 2010 compared to $340,400,000 at December 31, 2009. "Growth has been slow due to muted local loan demand, however we have been successful at attracting more full banking relationships that include the core deposits of both the business and the business owners which will strengthen the Bank's performance when interest rates rise," stated Mr. Duryea.

"Our strong commitment to the local businesses in Sonoma County continues to drive our strong net interest margin, efficiency ratio, and core deposit growth resulting from our key focus on being a full relationship Bank," said Mr. Duryea.

About Summit State Bank

Summit State Bank has total assets of $348 million and total equity of $55 million at December 31, 2010. Headquartered in Sonoma County, the Bank provides diverse financial products and services throughout Sonoma, Napa, San Francisco, and Marin Counties. Summit State Bank received the Gold Medal award for Best Business Bank from the Northbay Biz Magazine and has also been recognized as one of the North Bay's Best Places to Work by the North Bay Business Journal. 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.

SUMMIT STATE BANK AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except for earnings per share data)
         
  Three Months Ended Twelve Months Ended
  December 31,

2010
December 31,

2009
December 31,

2010
December 31,

2009
  (Unaudited) (Unaudited) (Unaudited)  
         
Interest income:        
Interest and fees on loans  $ 4,272  $ 4,541  $ 17,466  $ 18,856
Interest on Federal funds sold  7  1  26  1
Interest on investment securities and deposits in banks  343  343  1,384  1,790
Dividends on FHLB stock  3  --  10  6
         
Total interest income  4,625  4,885  18,886  20,653
         
Interest expense:        
Deposits   712  936  3,056  4,540
FHLB advances  95  200  497  1,020
         
Total interest expense  807  1,136  3,553  5,560
         
Net interest income before provision for loan losses  3,818  3,749  15,333  15,093
         
Provision for loan losses   1,000  1,200  3,860  3,650
         
Net interest income after provision for loan losses  2,818  2,549  11,473  11,443
         
Non-interest income:        
         
Service charges on deposit accounts  112  91  401  391
Office leases   128  132  529  594
Net securities gains  --  --  150  28
Loan servicing, net  9  10  40  58
Securities impairment  --  --  (24)  (17)
Other income   36  15  167  45
         
Total non-interest income  285  248  1,263  1,099
         
Non-interest expense:        
Salaries and employee benefits   1,168  1,014  4,788  4,266
Occupancy and equipment   397  438  1,598  1,710
Other expenses   792  739  3,167  3,023
         
Total non-interest expense  2,357  2,191  9,553  8,999
         
Income before provision for income taxes  746  606  3,183  3,543
         
Provision for income taxes   310  251  1,376  1,462
         
Net income  $ 436  $ 355  $ 1,807  $ 2,081
         
Less: preferred dividends 138  137 552  510
         
Net income available for common stockholders  $ 298  $ 218  $ 1,255  $ 1,571
         
Basic earnings per common share  $ 0.06  $ 0.05  $ 0.26  $ 0.33
Diluted earnings per common share  $ 0.06  $ 0.05  $ 0.26  $ 0.33
         
Basic weighted average shares of common stock outstanding 4,745 4,745 4,745 4,745
         
Diluted weighted average shares of common stock outstanding 4,783 4,747 4,779 4,766
 
SUMMIT STATE BANK AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
(In thousands except share and per share data)
  December 31,

2010
December 31,

2009
  (Unaudited)  
     
ASSETS    
     
Cash and due from banks  $ 4,542  $ 2,933
Federal funds sold  7,940  --
Total cash and cash equivalents  12,482  2,933
     
Available-for-sale investment securities - amortized cost of $33,472 at December 31, 2010 and $27,393

at December 31, 2009
 33,642  27,400
Loans, less allowance for loan losses of $6,058 in 2010 and $4,737 in 2009  279,639  288,277
Bank premises and equipment, net   7,304  7,721
Investment in Federal Home Loan Bank stock, at cost  2,614  2,942
Goodwill  4,119  4,119
Other Real Estate Owned  759  --
Accrued interest receivable and other assets   7,374  7,008
     
Total assets  $ 347,933  $ 340,400
     
LIABILITIES AND SHAREHOLDERS' EQUITY    
     
Deposits:    
Demand - non interest-bearing  $ 23,594  $ 15,706
Demand - interest-bearing  24,421  22,206
Savings  15,849  12,783
Money market  38,063  43,489
Time deposits, $100 thousand and over  113,187  97,855
Other time deposits  64,863  72,214
Total deposits  279,977  264,253
     
Federal Home Loan Bank (FHLB) advances  12,000  20,120
Accrued interest payable and other liabilities  647  522
     
Total liabilities  292,624  284,895
     
Shareholders' equity     
Preferred stock, no par value; 20,000,000 shares authorized; shares issued and outstanding - 8,500 in 2010 and 2009;

per share redemption of $1,000 for total liquidation preference of $8,500
 8,117  7,989
Common stock, no par value; shares authorized - 30,000,000 shares; issued and outstanding 4,744,720 at December 31, 2010

and December 31, 2009 
 36,311  36,275
Common stock warrant  622  622
Retained earnings  10,161  10,615
Accumulated other comprehensive income (loss), net of taxes   98  4
     
Total shareholders' equity  55,309  55,505
     
Total liabilities and shareholders' equity  $ 347,933  $ 340,400
Earnings Summary
(In Thousands)
         
  Three Months Ended Twelve Months Ended
  December 31,

2010
December 31,

2009
December 31,

2010
December 31,

2009
  (Unaudited) (Unaudited) (Unaudited) (Unaudited)
Statement of Income Data:        
Net interest income  $ 3,818  $ 3,749  $ 15,333  $ 15,093
Provision for loan losses   1,000  1,200  3,860  3,650
Non-interest income  285  248  1,263  1,099
Non-interest expense  2,357  2,191  9,553  8,999
Provision for income taxes   310  251  1,376  1,462
Net income  $ 436  $ 355  $ 1,807  $ 2,081
Less: preferred dividends  138  137  552  510
Net income available for common stockholders  $ 298  $ 218  $ 1,255  $ 1,571
         
Selected per Common Share Data:        
Basic earnings per common share  $ 0.06  $ 0.05  $ 0.26  $ 0.33
Diluted earnings per common share  $ 0.06  $ 0.05  $ 0.26  $ 0.33
Book value per common share (2)(3)  $ 9.95  $ 10.01  $ 9.95  $ 10.01
         
Selected Balance Sheet Data:         
Assets  $ 347,933  $ 340,400  $ 347,933  $ 340,400
Loans, net  279,639  288,277  279,639  288,277
Deposits  279,977  264,253  279,977  264,253
Average assets  353,405  343,461  351,386  353,790
Average earnings assets  340,501  326,142  336,905  337,705
Average shareholders' equity  56,376  56,010  56,197  56,190
Average common shareholders' equity  47,752  47,427  47,540  47,643
Nonperforming loans  12,713  11,653  12,713  11,653
Total nonperforming assets  13,472  11,697  13,472  11,697
         
Selected Ratios:        
Return on average assets (1) 0.49% 0.41% 0.51% 0.59%
Return on average common equity (1) 2.48% 1.82% 2.64% 3.30%
Return on average common tangible equity (1) 2.71% 2.00% 2.89% 3.61%
Efficiency ratio 57.45% 54.82% 57.56% 55.58%
Net interest margin (1) 4.45% 4.56% 4.55% 4.47%
Tier 1 leverage capital ratio 14.6% 15.1% 14.6% 15.1%
Tier 1 risk-based capital ratio 18.6% 18.1% 18.6% 18.1%
Total risk-based capital ratio 19.8% 19.3% 19.8% 19.3%
Common dividend payout ratio (4) 143.29% 195.87% 136.10% 108.72%
Average equity to average assets 15.95% 16.31% 15.99% 15.88%
Nonperforming loans to total loans (2) 4.45% 3.98% 4.45% 3.98%
Nonperforming assets to total assets (2) 3.87% 3.44% 3.87% 3.44%
Allowance for loan losses to total loans (2) 2.12% 1.62% 2.12% 1.62%
Allowance for loan losses to nonperforming loans (2) 47.65% 40.65% 47.65% 40.65%
         
(1) Annualized        
(2) As of period end        
(3) Total shareholders' equity less, preferred stock, divided by total common shares outstanding  
(4) common dividends divided by net income available for common stockholders    
CONTACT: Thomas Duryea, President and CEO
         Summit State Bank
         (707) 568-4920

© Copyright 2012, GlobeNewswire, Inc. All Rights Reserved

Discuss:

Discussion comments

,

Most active discussions

  1. votes comments
  2. votes comments
  3. votes comments
  4. votes comments

Data: Latest rates in the US

Home equity rates View rates in your area
Home equity type Today +/- Chart
$30K HELOC FICO 2.79%
$30K home equity loan FICO 5.78%
$75K home equity loan FICO 4.54%
Credit card rates View more rates
Card type Today +/- Last Week
Low Interest Cards 13.57%
13.57%
Cash Back Cards 17.91%
17.91%
Rewards Cards 17.15%
17.15%
Source: Bankrate.com