Sonoma County’s Summit State Bank earnings up 5% in Q3
Summit State Bank (Nasdaq: SSBI) reported third-quarter earnings were up 5% from the year before, partly attributed to “strong loan and deposit growth and net interest margin expansion.”
Net income for the quarter ended Sept. 30 were $3.98 million, or 59 cents per diluted share, up from $3.8 million a year before, according to the Santa Rosa-based bank holding company.
For the first nine months of this year, net income increased 10% to $12.4 million, or $1.86 per diluted share, from $11 million, or $1.65 per diluted share, for that pace in 2021.
Quarterly interest income was up 18% from a year earlier, to $12.5 million from $10.6 million. The company attributed that to a $1.67 million in loan interest yield from increased lending plus higher interest rates on the bank’s deposits with other institutions and on investments.
“The highlights of the third quarter included substantial growth in the loan portfolio, increases to our core deposit base, and expansion of our net interest margin,” said Brian Reed, president and CEO, in the announcement Oct. 26. “Loan production was stronger than anticipated during the third quarter, and noninterest bearing deposit balances continued to increase, despite deposit pricing pressures. We also surpassed the $1 billion asset milestone, which is a testament to our growth plan. As we head into a new economic environment, we continue to look for new strategies to help our customers while also growing our operations. We are located in some of the most vibrant Northern California markets with a diverse and strong economy. Together, with our strong core operations and ample capital base, we have the resources in place to make our business stronger and more financially sustainable.”
Net loans increased 13% to $893.6 million over 12 months. Assets totaled $1.04 billion at quarter end.
Deposits were up 16% to $868.9 million from a year ago, an increase attributed to a focus on growing local deposits organically.
The bank company declared a quarterly dividend of 12 cents a share.
