Summit State Bank(US:SSBI) Newsfilter·2025-01-28 16:30Core Points - Summit State Bank reported a net loss of $6,605,000, or $0.98 loss per diluted share for Q4 2024, compared to a net income of $1,901,000, or $0.28 per diluted share for Q4 2023 [1][2] - The annual net loss for 2024 was $3,656,000, or $0.54 loss per diluted share, primarily due to a provision for credit losses totaling $7,958,000 and a one-time goodwill impairment of $4,119,000 [2] - The bank's Tier 1 Leverage ratio improved to 8.92% at the end of 2024, remaining above the 5% minimum required for "well-capitalized" status [5][18] Financial Performance - Pre-tax, pre-provision net income before goodwill for Q4 2024 was $2,994,000, an increase from previous quarters [3][5] - Operating expenses rose to $10,200,000 in Q4 2024, largely due to a one-time goodwill impairment charge [11][40] - Non-interest income increased significantly to $1,373,000 in Q4 2024, compared to $297,000 in Q4 2023, driven by gains on sales of SBA guaranteed loan balances [10][40] Credit Quality - The bank charged off $8,343,000 in loans during Q4 2024 and recorded a $6,646,000 provision for credit losses [19][21] - Non-performing assets decreased to $32,884,000, or 3.08% of total assets, down from $44,206,000 a year earlier [19][40] - The allowance for credit losses to total loans was 1.50% as of December 31, 2024 [22] Balance Sheet - Total assets decreased to $1,067,557,000 at the end of 2024, down from $1,122,508,000 a year earlier [38][39] - Net loans decreased by 4% to $904,999,000 compared to $938,626,000 at the end of 2023 [13][15] - Total deposits also fell by 5% to $962,562,000 at the end of 2024 [14][16] Future Outlook - The bank plans to suspend cash dividends in Q1 2025 to build capital and increase liquidity [4] - The management anticipates further reductions in non-performing loans by $18,187,000 in the first half of 2025 [4]