Summit State Bank Reports Revised Fourth Quarter 2024 Financial Results

Core Insights - Summit State Bank has revised its fourth quarter and full year 2024 financial results, reporting a net loss of $7,142,000 for Q4 2024 and a full-year net loss of $4,193,000, reflecting significant adjustments in credit loss provisions and noninterest income [1][2][8] Financial Performance - The revised fourth quarter earnings estimate indicates a net loss of $7,142,000, or $1.06 loss per diluted share, compared to a net loss of $6,605,000, or $0.98 loss per diluted share previously reported [2] - For the full year 2024, the net loss was $4,193,000, or $0.62 loss per diluted share, down from a net income of $10,822,000, or $1.62 per diluted share in 2023 [9] Income Statement Adjustments - Noninterest income was adjusted from $1,373,000 in Q4 2024 to $680,000, and for the full year from $4,152,000 to $3,459,000 [3] - The total provision for credit losses increased from $6,652,000 to $6,722,000 for Q4 2024 and from $7,845,000 to $7,915,000 for the full year [4] Tax Implications - The effective tax rate for the year ended December 31, 2024, was revised to 4.4%, compared to a previously reported rate of -0.8% [5] Operational Highlights - The Bank's Tier 1 Leverage ratio increased to 8.87% at December 31, 2024, remaining above the minimum required for "well-capitalized" status [23] - The annualized loss on average assets for Q4 2024 was 2.59%, and the loss on average equity was 28.05%, compared to returns of 0.67% and 8.02% respectively in Q4 2023 [13] Credit Quality and Asset Management - Non-performing assets decreased to $32,191,000, or 3.02% of total assets, down from $44,206,000 a year earlier [24] - The Bank charged off $8,343,000 in loans during Q4 2024 and recorded a $6,570,000 provision for credit losses [24][26] Balance Sheet Overview - Total assets decreased to $1,067,094,000 as of December 31, 2024, from $1,122,508,000 a year earlier [41] - Net loans decreased by 4% to $905,075,000, and total deposits decreased by 5% to $962,562,000 compared to the previous year [19][21] Future Outlook - The Bank anticipates further reductions in non-performing loans by $18,187,000 in the first half of 2025 due to loan payoffs from collateral sales [11] - The focus remains on enhancing revenue generation and driving cost efficiencies to improve operational effectiveness [19]