Summit State Bank first-half net income drops 30% to $1.8M

Summit State Bank, based in Santa Rosa, reported net income for the second quarter of $930,000, down 26 percent from the second quarter of 2016.

The bank had diluted earnings per share of 15 cents in the second quarter of 2017, down from 21 cents in the same quarter of 2016. For the first half of 2017, the bank's net income was $1.8 million, down almost 30 percent from $2.6 million in the first half of 2016.

On Aug. 25, Summit State Bank will pay a quarterly dividend of 12 cents to shareholders of record on Aug. 17.

The bank stated that some of the dip in earnings resulted from a gain in securities of $555,000 in the second quarter of 2016, when it called some bonds in its portfolio. Net interest income dropped $269,000 between the year-over-year second quarters, due mostly to interest-rate increases by the Federal Reserve, reducing margin by 0.3 percent.

The bank has added staffing to promote loan growth, adding both personnel and office expenses. 'The increase in staffing levels, primarily in the loan function, is starting to bear fruit with an increase in loans outstanding and an encouraging loan pipeline,' said Jim Brush, CEO and president, in a statement. The bank added a small-business lending office in Roseville that will emphasize Small Business Administration loans in Northern California.

Summit State Bank, with total assets of $537 million, is a state-chartered commercial bank that operates primarily in Sonoma County. The bank has five offices in Santa Rosa, Petaluma, Rohnert Park and Healdsburg.

James Dunn covers technology, biotech, law, the food industry, and banking and finance. Reach him at james.dunn@busjrnl.com or 707-521-4257

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