Summit State Bank (NASDAQ: SSBI) today announced net income of $835,000 for the quarter ended June 30, a 5.7 percent increase over the same quarter last year.

The bank’s board of directors today also declared a nine cent quarterly dividend for common stock, to be paid on Aug. 23 to shareholders of record as of Aug. 15. The quarterly net income was equivalent to 14 cents per diluted share.

Total assets increased 6 percent compared to the same time last year, to $407 million. The bank had $271 million in loans at June 30, a value that was largely unchanged over the past 12 months.

Net interest income declined 7.5 percent versus the same quarter in 2011, at $4 million. The net interest margin for the bank was 4.16 percent for the quarter, down from 4.82 percent during the same period last year.

Noninterest income of $412,000 represented a 31 percent increase compared to the same time in 2011, growth that included revenue from rental of foreclosed commercial property and investment gains.

The provision for loan losses was $410,000 for the second quarter, down 31.7 percent. The bank reported $17 million in nonperforming assets, a 32 percent increase from the same time in 2011 that represented $5.1 million in foreclosed real estate and $12 million in non-accruing loans.

The bank’s Tier 1 capital leverage ratio was 14 percent, with a total risk based capital ratio of 19 percent and $61 million in equity as of June 30.

Noninterest-bearing deposits grew 53 percent compared to the same time in 2011, to $46.7 million. Core deposits represented 46 percent of total deposits, versus 37 percent twelve months prior.

“We have been able to improve our profitability by growing earning assets and building our core deposit base as we continue to earn more full banking relationships through our customer service and support of our local Sonoma County community,” said Thomas Duryea, president and CEO, in a statement. “While the present economy continues to reflect low interest rates and softer loan demand, we are starting to see an increase in lending through our $50,000,000 Small Business Lending Program that will benefit our margin and interest income.”