Summit State Bank (Nasdaq: SSBI) on Wednesday reported third-quarter net income down more than 32% to $626,000 from the previous three months.

The main financial barometer also stands at around a third of 2023 profits in the third quarter.

Net interest income, which is the difference between income generated by interest-bearing assets and liability costs, was $7.7 million for the latest quarter before taking into account a provision of $1.3 million to cancel loan losses. After this balance sheet charge on loan issuances, the revenue level amounted to $5.97 million, a 15% decrease from the second quarter results and almost $200,000 less than in the third quarter of 2023.

Net loans also decreased by $14.83 million to $917.36 million for the same period in 2023. But loan amounts increased from $913.51 million in the second quarter.

Noninterest income, derived from fees, showed another mixed result in the third quarter with $1 million transferred to the Santa Rosa-based bank. It was $801,000 in the previous quarter and $1.49 million when compared to the third quarter of 2023.

Noninterest expenses for the third quarter of 2024 ending September 30 were $6.81 million, more than 6% lower than last quarter’s expenses. Last quarter’s figure was almost $800,000 lower than the third quarter of 2023.

Total deposits fell 3% to $1 billion, but were up from $966.58 million in the second quarter.

Banks have endured more than a year of challenges amid a national backdrop of high interest rates and after a pandemic period in which the government injected $9 trillion into the economy. This collective injection of cash was deposited into individual and business accounts across the country.

After Summit State Bank released its second quarter results, representing a 68% drop in profits.

President and CEO Brian Reed, on behalf of the Board of Directors, committed to navigating a period of rebuilding with an eye toward the future.

“In this time of economic uncertainty, the Board is working to balance its commitment to shareholders while building capital, increasing liquidity and positioning the bank to create long-term value,” Reed said in a statement. “As such, the bank is not announcing a dividend for the third quarter of 2024.”

The declaration follows that of the last quarter Dividend of 4 cents per share a payment amounting to a third of what was paid from the first quarter of 2024.

Founded in 1982, Summit State Bank reported assets of $1.1 billion at the end of the quarter, an increase of approximately $30 million from the prior three-month period.

Susan Wood covers law, cannabis, manufacturing, transportation, agriculture, and banking and finance. She can be reached at 530-545-8662 or [email protected]