Summit State Bank (SSBI) investor relations material

Executive summary

• Headquartered in Santa Rosa, CA, with $960 million in assets and four branches, the bank focuses on community-centered, relationship banking and support for nonprofits and local businesses.

• Leadership emphasizes integrity, collaboration, and adaptability, with a strong executive team and board with deep local ties.

• Reported a net loss of $1.3 million ($0.19 per diluted share) for Q2 2026, compared to net income of $2.4 million in Q2 2025, primarily due to a significant provision for credit losses and higher charge-offs.

• Non-performing loans reduced by approximately 44% from the prior quarter due to loan sales and charge-offs.

• The bank has a history of steady growth, community engagement, and recognition for workplace excellence and philanthropy.

Financial highlights

• Net interest income for Q2 2026 was $9.3 million, up 1% year-over-year, with net interest margin rising to 3.95% from 3.66%.

• Net loss for Q2 2026 was $1.3 million, or $(0.19) per diluted share, driven by a $5.9 million provision for credit losses and $8.7 million in net charge-offs.

• Nonperforming assets decreased to $20.8 million (2.16% of assets) from $34.1 million at year-end 2025.

• Tangible Book Value grew 25% since 2021, reaching $98.6 million as of June 30, 2026; book value per share rose to $14.98 from $14.49 year-over-year.

• Operating expenses in Q2 2026 were flat year-over-year at $6.3 million; one-time goodwill impairment of $4.1 million recognized.

Outlook and guidance

• Core earnings are expected to improve due to net interest margin expansion and disciplined expense management.

• Management expects continued variability in quarterly provision for credit losses due to CECL model sensitivity and economic conditions.

• Strategic focus remains on improving capital ratios, managing credit risk through selective loan runoff, and maintaining strong capital and liquidity positions.

• Loan yields are projected to rise as $379 million of Treasury-based loans reprice through 2028.

• Forward-looking statements caution that actual results may differ due to various risks and uncertainties.