SANTA ROSA -- Summit State Bank reported a net income of $412,000 for the first quarter of 2011, down from the $540,000 reported at the end of the first quarter of 2010.

“Our net income continues to be driven by our expanding relationship base, strong core operations, and focus on efficiencies. Our focus has resulted in continuing strong margins and efficiency ratios in the first quarter,” said Thomas Duryea, president and chief executive officer of the bank.

Total deposits were $300.1 million, up from the $274.9 million in the same quarter of 2010.

Total loans were reported at $280.3 million, down just slightly from the $284.9 million the previous year.

The provision for loan losses remained elevated at $800,000 for first quarter 2011 which the bank attributed to the weak economic conditions and addressing former transaction focus, further impacting profit levels. The provision has declined $210,000 between the first quarters of 2011 and

2010.

Allowance for loan losses increased to $6.7 million from $6.1 reported in the last quarter of 2010, increasing the coverage of allowance for loan losses to gross loans to 2.34 percent from 2.11 percent.

Nonperforming assets at $13.8 million in loans on non-accrual and $468,000 in foreclosed real estate. This compares to nonperforming assets of $11.4 million at the end of the first quarter of last year.

“Nonperforming loans consist of ten borrowers and are primarily secured by real estate,” said Guy Dana, chief credit officer.

Total assets increased to $374 million at March 31, 2011 compared to $347.9 million at Dec. 31, 2010.