Summit State Bank shares recover after glum week

Summit State Bank

07/10/2024 16:28

** Shares of California-based community lender Summit State
Bank  SSBI.O  jump as much as 12%, last up 10.9% at $7
    ** Stock set to snap five straight sessions of losses, if
gains hold
    ** SSBI shares fell 27.8% in the previous week, with the
stock down 10.8% on Thursday and 10.5% on Friday
    ** Company slashed dividend to 4 cents per share from 12
cents last month, as it looks to shore up capital
    ** Like other smaller banks, SSBI has been facing the brunt
of a higher-for-longer interest rate environment
    ** SSBI CEO Brian Reed said last month the rate environment
and its impact on earnings had led to its decision to cut the
dividend
    ** Bank's Q2 net income shrunk to $928,000 from ~$3 mln a
year earlier, as higher deposit costs outpaced the increase in
loan yields
    ** Stock down 48.7% YTD, as of last close

 (Reporting by Arasu Kannagi Basil in Bengaluru)
 ((ArasuKannagi.Basil@thomsonreuters.com))