Summit State Bank reports Q2 EPS 45c vs 67c last year

The Bank maintains loan loss reserves at the high-end when compared to peers due to increases in nonperforming loans. This is exhibited by loans to gross loans increasing to 2.65% at June 30, 2023 compared to 1.13% at March 31, 2023 and 0.07% at June 30, 2022. Additionally, nonperforming assets to total assets increased to 2.14%, at June 30, 2023 compared to 0.91% at March 31, 2023 and 0.06% at June 30, 2022. “Our second quarter results reflected solid net interest income generation, fueled by strong loan growth,” said Brian Reed, President and CEO. “Deposits also increased with growth across half of the deposit categories. We have been very deliberate in our deposit gathering strategies, and as a result were able to grow customer deposits during the quarter, at a time when the banking industry is experiencing deposit contraction. While the net interest margin decrease was primarily related to pressure from the funding side of the balance sheet, we remain prudent with all new loan pricing, with an average loan rate of 5.66% during the quarter, compared to 5.59% in the prior quarter. Despite the challenges and headwinds facing the banking industry, our ability to grow our balance sheet organically will ultimately further enhance the value of our Bank over time.”