Summit State Bank posts Q3 net loss on higher credit loss provision
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
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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
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(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.)