SANTA ROSA – Summit State Bank (NASDAQ: SSBI) reported $409,000 in net income for the third quarter of 2011, a 26 percent increase over the same quarter last year.

Total assets increased to $395.08 million by Sept. 30, up 13.6 percent since the start of the year. Deposits increased 15.9 percent since the beginning of the year, to $324.5 million.

Net income for the nine months ending Sept. 30 was $1.68 million, up from $1.2 million by the same time last year. Income available to common stockholders was $1.2 million for the nine months, or 25 cents per diluted share, versus 20 cents per diluted share in 2010.

The net interest margin for the quarter fell to 4.11 percent versus 4.52 percent in the same quarter last year. The bank attributed the decrease to a loan that became nonaccruing during the quarter and efforts to increase liquidity and earning assets. The margin was 4.52 percent for the year to date.

The provision for loan losses increased, $1.6 million for the quarter and $3 million through the year versus $1.15 million for the quarter and $2.86 million for the year in 2010.

Nonperforming loans totaled $9.64 million at Sept. 30, down from $13.47 million at the beginning of the year.