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Summit State Bank posts Q3 net loss on higher credit loss provision

By Reuters News


Overview

  • US community bank posts preliminary Q3 net loss, driven by higher provision for credit losses

  • Pre-tax, pre-provision income rose marginally yr/yr as net interest margin improved

  • Company reduced nonperforming assets and continued to manage loan and deposit portfolios


Outlook

  • Company did not provide specific financial guidance for the current quarter or full year in its press release


Result Drivers

  • CREDIT LOSS PROVISION - Co said Q3 results were impacted by $5.7 mln provision for credit losses on loans

  • CHARGE-OFFS - Co recognized $507,000 in gross charge-offs following review of higher-risk credits and new collateral information

  • NET INTEREST MARGIN - Net interest margin improved by 36 bps to 3.87% in Q3, driven by lower cost of funds and loan repricing, per CEO Brian Reed


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Loss Per Share

$0.16

Q3 Net Loss

$1.10 mln

Q3 Loss Per Basic Share

$0.16

Q3 Net Interest Margin

3.87%


Reuters Recommended Reads

  • Oct 26 - Blue Ridge Bankshares Q3 net loss widens on credit loss provisions

  • Oct 26 - Bank of Hawaii Q3 net income rises on higher net interest income

  • Oct 26 - First Resource Bank Q3 profit rises on loan growth


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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