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.

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

• 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 and $1.7 million in Q1 2026.

• Loss driven by a $5.9 million provision for credit losses following a comprehensive review and charge-offs of higher-risk credits.

Financial highlights

• Net interest income increased from $9.2MM in Q2 2025 to $9.3MM in Q2 2026, with net interest margin expanding to 3.95% in Q2 2026 from 3.66% in Q2 2025.

• Nonperforming loans declined by $14MM from Q1 2026 to $18MM as of Q2 2026; non-performing assets at $20.8 million (2.16% of total assets), down from $35.2 million in Q1 2026.

• Tangible Book Value grew 25% since 2021, reaching $98.6MM as of June 30, 2026; book value per share at $14.98, up from $14.49 a year ago.

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

• Interest and dividend income decreased 7.6% year-over-year to $14.1 million due to lower loan and investment volumes.

Outlook and guidance

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

• Management remains confident in the core business and long-term strategy, emphasizing strong capital and liquidity.

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

• Focus remains on reducing CRE concentration and maintaining strong capital and liquidity positions.

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