Summit State Bank posts Q3 net loss on higher credit loss provision
SSBI•Summit State Bank reported a preliminary third-quarter net loss of $1.10 million, or $0.16 per share, after recording a $5.7 million provision for credit losses. Net interest margin improved 36 basis points to 3.87%.
1. Quarterly results
Summit State Bank reported a preliminary third-quarter net loss of $1.10 million, or $0.16 per basic share. Results included a $5.7 million provision for credit losses on loans and $507,000 in gross charge-offs following reviews of higher-risk credits and new collateral information.
2. Margin and assets
Pre-tax, pre-provision income rose marginally year over year, while net interest margin improved 36 basis points to 3.87%. CEO Brian Reed attributed the margin improvement to a lower cost of funds and loan repricing. The company reduced nonperforming assets and continued managing its loan and deposit portfolios.
