Santa Rosa-based Summit State Bank reports second-quarter earnings

Summit State Bank, based in Santa Rosa, reported $1.2 million in net income for the quarter ending June 30, or 26 cents per share, down from $1.7 million in earnings (35 cents a share) for the same quarter in 2015.

The community bank's board declared a 12 cents per share dividend to be paid Aug. 27 to shareholders of record Aug. 18.

According to the Summit's statement, deposits increased 10 percent between June 30, 2015, and June 30, 2016. It stated the bank's total assets as of the June 30 at $518 million, 5.2 percent more than it had on June 30, 2015.

Noted among its expense figures, Summit reported, 'employee severance expenses related to the former President and other employees of $538,000.' According to Dennis Kelley, chief financial officer and executive vice president, 'The bank had one-time expenses, in particular the change in executive management which raises expenses for the quarter.'

On April 18, Tom Duryea, who lead the bank for eight years, resigned as bank CEO. Mark DeMeo, a pathologist who practiced for four decades at Santa Rosa Memorial Hospital, resigned his board position after two years of service on April 19, a day after protesting Duryea's resignation.

The bank replaced him with James Brush, a board member and CPA who became the bank's new CEO and president.

Summit State Bank is a state-chartered commercial bank operating a traditional community banking business within its primary service area of Sonoma County. The bank operates through five offices in Santa Rosa, Petaluma, Rohnert Park and Healdsburg.

Shares of Summit State Bank (NASDAQ: SSBI) were $13.75 at the close of trading July 26, down over 1 percent.