Summit State Bank (NasdaqGM:SSBI) - Share price, News & Analysis

Q: What is the Fair Price of SSBI when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

SSBI ($15.01) is trading below our estimate of [[fair value]] ($34.97)

SSBI fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	0/6
Past Performance	4/6
Financial Health	6/6
Dividends	4/6

SSBI Stock Overview

Summit State Bank provides various banking products and services to individuals and businesses primarily in Sonoma County, California.

Rewards

Trading at 57.1% below our estimate of its fair value

Earnings grew by 21.5% over the past year

Pays a reliable dividend of 3.2%

Risk Analysis

No risks detected for SSBI from our risk checks.

Summit State Bank Competitors

Bank of Idaho Holding

OTCPK:BOID

US$104.9m

Freedom Financial Holdings

OTCPK:FDVA

US$104.3m

United Bancorporation of Alabama

OTCPK:UBAB

US$104.2m

Summit Bank Group

OTCPK:SBKO

US$111.6m

Price History & Performance

Summary of all time highs, changes and price drops for Summit State Bank
Historical stock prices
Current Share Price	US$15.01
52 Week High	US$20.00
52 Week Low	US$13.91
Beta	0.55
1 Month Change	-1.74%
3 Month Change	-1.57%
1 Year Change	-1.13%
3 Year Change	37.02%
5 Year Change	32.09%
Change since IPO	37.59%

Recent News & Updates

Jul 29

Summit State Bank (NASDAQ:SSBI) Is Due To Pay A Dividend Of $0.12

Summit State Bank ( NASDAQ:SSBI ) has announced that it will pay a dividend of $0.12 per share on the 18th of August...

Jul 26

Summit State Bank declares $0.12 dividend

Summit State Bank (NASDAQ:SSBI) declares $0.12/share quarterly dividend, in line with previous. Forward yield 3.06% Payable Aug. 18; for shareholders of record Aug. 11; ex-div Aug. 10. See SSBI Dividend Scorecard, Yield Chart, & Dividend Growth.

Shareholder Returns

	SSBI	US Banks	US Market
7D	-4.8%	2.0%	0.3%
1Y	-1.1%	-15.3%	-13.5%

Return vs Industry: SSBI exceeded the US Banks industry which returned -14.7% over the past year.

Return vs Market: SSBI exceeded the US Market which returned -13% over the past year.

Price Volatility

Is SSBI's price volatile compared to industry and market?
SSBI volatility
SSBI Average Weekly Movement	2.5%
Banks Industry Average Movement	3.7%
Market Average Movement	7.9%
10% most volatile stocks in US Market	17.2%
10% least volatile stocks in US Market	3.2%

Stable Share Price: SSBI is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: SSBI's weekly volatility (2%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1982	99	Brian Reed	https://summitstatebank.com

Summit State Bank provides various banking products and services to individuals and businesses primarily in Sonoma County, California. It offers personal and business checking, money market, sweep, savings, and demand accounts; time certificates of deposit; and specialized deposit accounts, such as professional, small business packaged, tiered, individual retirement, and other retirement plan accounts. The company also provides loans, including commercial loans and leases; lines of credit; commercial real estate, small business administration, residential mortgage, and construction loans; home equity lines of credit; and lines of credit, term, and equipment loans, as well as loans to agriculture-related businesses.

Summit State Bank Fundamentals Summary

How do Summit State Bank's earnings and revenue compare to its market cap?
SSBI fundamental statistics
Market Cap	US$100.39m
Earnings (TTM)	US$15.92m
Revenue (TTM)	US$44.48m

6.3x

P/E Ratio

1.2x

P/B Ratio

Is SSBI overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
SSBI income statement (TTM)
Revenue	US$44.48m
Cost of Revenue	US$0
Gross Profit	US$44.48m
Other Expenses	US$28.56m
Earnings	US$15.92m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	2.38
Gross Margin	100.00%
Net Profit Margin	35.79%
Debt/Equity Ratio	76.2%

How did SSBI perform over the long term?

See historical performance and comparison

Dividends

3.2%

Current Dividend Yield

19%

Payout Ratio

Does SSBI pay a reliable dividends?

See SSBI dividend history and benchmarks

When do you need to buy SSBI by to receive an upcoming dividend?
Summit State Bank dividend dates
Ex Dividend Date	Aug 10 2022
Dividend Pay Date	Aug 18 2022
Days until Ex dividend	1 day
Days until Dividend pay date	7 days

Does SSBI pay a reliable dividends?

See SSBI dividend history and benchmarks

We’ve recently updated our valuation analysis.

Valuation

Is SSBI undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for SSBI?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for SSBI. This is calculated by dividing SSBI's market cap by their current preferred multiple.
What is SSBI's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	US$100.39m

SSBI key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	n/a
Enterprise Value/EBITDA	n/a
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

How does SSBI's PE Ratio compare to its peers?

SSBI PE Ratio vs Peers

The above table shows the PE ratio for SSBI vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	10.9x
BOID Bank of Idaho Holding	17.5x	n/a	US$104.9m
FDVA Freedom Financial Holdings	9.8x	n/a	US$104.3m
UBAB United Bancorporation of Alabama	7.2x	5.9%	US$104.2m
SBKO Summit Bank Group	9.2x	n/a	US$111.6m
SSBI Summit State Bank	6.3x	n/a	US$100.4m

Price-To-Earnings vs Peers: SSBI is good value based on its Price-To-Earnings Ratio (6.3x) compared to the peer average (10.9x).

Price to Earnings Ratio vs Industry

How does SSBI's PE Ratio compare vs other companies in the US Banks Industry?

Price-To-Earnings vs Industry: SSBI is good value based on its Price-To-Earnings Ratio (6.3x) compared to the US Banks industry average (9.8x)

Price to Earnings Ratio vs Fair Ratio

What is SSBI's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

SSBI PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	6.3x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate SSBI's Price-To-Earnings Fair Ratio for valuation analysis.

Share Price vs Fair Value

What is the Fair Price of SSBI when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: SSBI ($15.01) is trading below our estimate of fair value ($34.97)

Significantly Below Fair Value: SSBI is trading below fair value by more than 20%.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

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Future Growth

How is Summit State Bank forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

10.4%

Forecasted Banks industry annual growth in earnings

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Summit State Bank has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.

Discover growth companies

Examine whether Summit State Bank is trading at an attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.

Past Performance

How has Summit State Bank performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

31.3%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: SSBI has high quality earnings.

Growing Profit Margin: SSBI's current net profit margins (35.8%) are higher than last year (34.9%).

Past Earnings Growth Analysis

Earnings Trend: SSBI's earnings have grown significantly by 31.3% per year over the past 5 years.

Accelerating Growth: SSBI's earnings growth over the past year (21.5%) is below its 5-year average (31.3% per year).

Earnings vs Industry: SSBI earnings growth over the past year (21.5%) exceeded the Banks industry 8.8%.

Return on Equity

High ROE: SSBI's Return on Equity (18.8%) is considered low.

Discover strong past performing companies

Financial Health

How is Summit State Bank's financial position? (This company is analysed differently as a bank or financial institution)

Financial Health Score

6/6

Financial Health Score 6/6

Asset Level
Allowance for Bad Loans
Low Risk Liabilities
Loan Level
Low Risk Deposits
Level of Bad Loans

Financial Position Analysis

Debt to Equity History and Analysis

Balance Sheet

Financial Institutions Analysis

Asset Level: SSBI's Assets to Equity ratio (11.6x) is moderate.

Allowance for Bad Loans: SSBI has a sufficient allowance for bad loans (2360%).

Low Risk Liabilities: 91% of SSBI's liabilities are made up of primarily low risk sources of funding.

Loan Level: SSBI has an appropriate level of Loans to Assets ratio (85%).

Low Risk Deposits: SSBI's Loans to Deposits ratio (102%) is appropriate.

Level of Bad Loans: SSBI has an appropriate level of bad loans (0.1%).

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Dividend

What is Summit State Bank current dividend yield, its reliability and sustainability?

Dividend Score

4/6

Dividend Score 4/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

3.20%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: SSBI's dividend (3.2%) is higher than the bottom 25% of dividend payers in the US market (1.52%).

High Dividend: SSBI's dividend (3.2%) is low compared to the top 25% of dividend payers in the US market (4.08%).

Stability and Growth of Payments

Stable Dividend: SSBI's dividends per share have been stable in the past 10 years.

Growing Dividend: SSBI's dividend payments have increased over the past 10 years.

Current Payout to Shareholders

Earnings Coverage: With its low payout ratio (19.3%), SSBI's dividend payments are well covered by earnings.

Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years or that it will be covered by earnings.

Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

5.1yrs

Average management tenure

CEO

Brian Reed (63 yo)

2.33yrs

Tenure

US$646,716

Compensation

Mr. Brian J. Reed has been the President and Chief Executive Officer at Summit State Bank since April 28, 2020 and has been its Director since April 2020. He served as an Executive Vice President and Chief...

CEO Compensation Analysis

Compensation vs Market: Brian's total compensation ($USD646.72K) is about average for companies of similar size in the US market ($USD763.69K).

Compensation vs Earnings: Brian's compensation has increased by more than 20% in the past year.

Leadership Team

Experienced Management: SSBI's management team is seasoned and experienced (5.1 years average tenure).

Board Members

Experienced Board: SSBI's board of directors are seasoned and experienced ( 11.2 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: SSBI insiders have bought more shares than they have sold in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/08/09 00:00
End of Day Share Price	2022/08/09 00:00
Earnings	2022/06/30
Annual Earnings	2021/12/31