Summit State Bank Reports Net Income of $626,000 for Third Quarter 2024

Core Viewpoint Summit State Bank reported a decline in net income for the third quarter of 2024, attributed to increased provisions for credit losses and a challenging interest rate environment, while maintaining strong liquidity and capital levels. Financial Performance - Net income for Q3 2024 was $626,000, or $0.09 per diluted share, down from $1,821,000, or $0.27 per diluted share in Q3 2023 [1][2] - Net operating income before credit loss provision and income tax was $2,122,000 for Q3 2024, compared to $2,520,000 in Q3 2023 [1][2] - Operating expenses decreased to $6,181,000 in Q3 2024 from $6,926,000 in Q3 2023 [2][7] - The annualized return on average assets was 0.23% and return on average equity was 2.48% for Q3 2024, compared to 0.63% and 7.59% respectively in Q3 2023 [3] Interest Income and Expenses - Net interest margin was 2.71% in Q3 2024, down from 2.80% in Q3 2023 [4][26] - Interest and dividend income increased slightly to $14,977,000 in Q3 2024 from $14,931,000 in Q3 2023 [4][21] - The cost of deposits rose to 3.05% in Q3 2024 from 2.63% in Q3 2023 [9][5] Credit Quality - A provision for credit losses of $1,320,000 was recorded in Q3 2024, impacting net income [14][15] - Nonperforming assets were $41,971,000, or 3.75% of total assets, up from $35,267,000 a year earlier [12][26] - The allowance for credit losses to total loans was 1.66% as of September 30, 2024 [15][26] Balance Sheet Highlights - Total assets were $1,118,791,000 as of September 30, 2024, compared to $1,142,174,000 a year earlier [23][27] - Net loans decreased to $917,367,000 from $932,199,000 a year earlier [8][23] - Total deposits decreased by 3% to $1,002,770,000 compared to $1,030,836,000 a year earlier [9][23] Capital and Liquidity - The bank maintained strong liquidity of $458,554,000, or 41.0% of total assets [2][9] - Shareholders' equity increased to $100,662,000 from $93,439,000 a year earlier [10][24] - The bank remains well-capitalized with all regulatory capital ratios above minimum requirements [11][12]