Summit State Bank(US:SSBI) Globenewswireยท2025-10-29 13:00Core Insights - Summit State Bank reported a net income of $818,000, or $0.12 per diluted share for Q3 2025, an increase from $626,000, or $0.09 per diluted share in Q3 2024 [1][5][35] - The bank's operating performance was bolstered by higher net interest income and margin expansion, despite ongoing challenges with nonperforming assets [2][5] - The decision to suspend cash dividends for Q3 2025 aims to strengthen the bank's capital base and improve liquidity [2][5] Financial Performance - The annualized return on average assets was 0.32% and return on average equity was 3.25% for Q3 2025, compared to 0.23% and 2.48% respectively in Q3 2024 [4][35] - Net interest margin expanded by 80 basis points to 3.51% in Q3 2025 from 2.71% in Q3 2024 [5][35] - Non-performing assets decreased to $27,978,000 in Q3 2025 from $41,971,000 in Q3 2024 [5][17] Balance Sheet Highlights - Total assets were $1,006,522,000 as of September 30, 2025, down from $1,118,791,000 a year earlier [33][35] - Net loans held for investment decreased by 9% to $838,402,000 compared to $917,367,000 in Q3 2024 [12][35] - Total deposits fell by 11% to $888,784,000 from $1,002,770,000 in Q3 2024 [14][35] Credit Quality - Non-performing assets represented 2.78% of total assets as of September 30, 2025, a decrease from 3.75% a year earlier [17][40] - The allowance for credit losses to total loans held for investment was 1.65% as of September 30, 2025, compared to 1.66% a year earlier [19][40] - The bank recorded net charge-offs of $1,800,000 in Q3 2025, up from $492,000 in Q2 2025 [18][35] Operational Efficiency - Operating expenses decreased to $5,545,000 in Q3 2025 from $6,181,000 in Q3 2024, driven by reductions in commission expenses and employee benefits [11][35] - The efficiency ratio improved to 58.00% in Q3 2025 from 74.45% in Q3 2024 [35][40] - The bank continues to focus on streamlining operations and managing costs effectively [10]