Momentum &
Milestones
2022
Annual Report
As a community bank, we have been instrumental in creating long-term
positive changes for individuals and businesses by providing specialized
products and creating personalized relationships that help our customers
achieve success. Just as important, we value and respect our employees
making every effort to create a work environment that favorably impacts
their employee experience which in turn creates a strong company
culture. As we reflect over the last forty years, Summit State Bank has
made substantial strides and achieved major milestones which will leave
a lasting impression on our community, today and into the future.
Looking to the next forty years we will continue this momentum by
emphasizing our guiding principles that provide the direction and focus
on our beliefs, values, and goals. These principles shape our company
philosophy and are the catalyst for every decision or action that happen
within our organization.
- Brian Reed, President and CEO
Mission Statement
Summit State Bank's mission is
to hire and invest in exceptional
people, provide superior service
and solutions for our customers,
increase value for our
shareholders, and continuously
support and enrich the
communities in which we serve.
Vision Statement
To be the community bank leader
committed to providing superior
service and enriching the
communities we serve, today and
into the future.
Core Values
Our core values support our vision
and shape our company culture.
The guiding principles that drive
our attitudes, actions, and
decision-making are:
Integrity
Collaboration
Respect
Adaptable
Can-Do Attitude
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Letter to the Shareholders
Letter to our Shareholders, Employees, Customers and Community
We are pleased to announce that in 2022 the Bank reported record earnings and growth for the
fourth consecutive year achieving a significant milestone of exceeding $1 billion in bank assets.
Guided by our executive and management team, our dedicated employees utilize their expertise
and adaptability to provide superior customer service and meet the needs of our customers and
community.
The Bank increased its net income by 15% to $17 million for the year. We earned record profits
due in large part to substantial loan growth, an increase in core deposits, and expansion of our
net interest margin. Earnings primarily grew in our core operations through an increase in net
loans of 11% and deposit growth of 19%.
To continue our momentum of success we look to our Mission Statement, Vision Statement and
Core Values as guiding principles that shape our company philosophy. We fully embrace these
ideals at all levels of our organization and use them to guide our attitudes, actions, and decision-
making.
We take great pride in giving back to our community and continue that focus through our
Nonprofit Partner Program, now in its fourteenth year. Since the inception of this program, we
have donated over $3,500,000 to local nonprofits. With the contributions earned through this
partnership during 2022 and additional charitable donations, Summit State Bank gave over
$900,000 to 330 local nonprofit organizations, which provide critical services such as food,
shelter, childcare, and other essential support. We remain committed to making a positive
difference in our local community.
On behalf of the Board of Directors and management, we thank you, our customers, employees,
shareholders, and community for the confidence and trust you have placed in us. We are
committed to building A Better Sonoma County by encouraging sustainability and small business
growth. That’s Our Business.
James E. Brush Brian J. Reed
Chairman of the Board President & CEO
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Executive Leadership
Brian Reed, President and CEO and
Candy Yandell, Vice President and Cash
Management Services Manager, sharing
a conversation.
Our experienced Executive Leadership Team continues
to diligently lead the Bank as a high performing financial
institution. The foundation they built prior to the
pandemic and their unwavering commitment to the
success of the organization, has created significant
momentum and growth in the Bank’s financial results
over the last four years. The success achieved during the
pandemic and during uncertain economic times
demonstrates how nimble the Executives are at
managing our business. Decisions are made locally, and
the Bank’s core values guide their attitudes, actions, and
decision-making.
As a community bank, our Executive Leadership Team is
engaged in the community by volunteering, sitting on
nonprofit boards and providing their financial expertise.
Each member brings diverse knowledge and experience,
in and out of the banking industry, and complement
each other to create a versatile Executive Leadership
Team.
4
Executive Leadership
Brandy Seppi
Executive Vice President
and Chief Lending Officer
Genie Del Secco
Executive Vice President
and Chief Operating Officer
Brian Reed
President and
Chief Executive Officer
Camille Kazarian
Executive Vice President
and Chief Financial Officer
Michael Castlio
Executive Vice President
and Chief Credit Officer
Brandy has over 29 years of
experience in the industry.
Genie has over 33 years of
experience in the industry.
Brian has over 39 years of
experience in the industry.
Camille has over 24 years of
experience in the industry.
Michael has over 28 years of
experience in the industry.
9 years at Summit State Bank
8 years at Summit State Bank
7 years at Summit State Bank
5 years at Summit State Bank
5 years at Summit State Bank
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Board of Directors
Our board members are carefully vetted to ensure their
values are in alignment with the Bank. Individuals are
selected based on their integrity, business acumen,
community involvement and engagement. We live in a
diverse community and strive to emulate that diversity
across our organization. Each board member brings their
professional experience, knowledge, and unique views
which we believe makes our community bank effective and
successful.
In 2022, we added Douglas Reynolds, President and CEO
of Energy Services of America, to our Board of Directors.
He also serves as the President of the Transylvania
Corporation and Director of The Harrah and Reynolds
Corporation and Premier Financial Bancorp, Inc. His
business acuity and knowledge of the banking industry
make him an excellent addition to our Board of Directors.
Douglas V. Reynolds
President and CEO
Energy Services of America
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Board of Directors
James E. Brush
Chairman of the Board
Business Consultant
Brian J. Reed
President and CEO
Summit State Bank
Jeff B. Allen
President and
Founder Allen Land Design
Belinda S. Guadarrama
President and CEO
GC Micro
Dawn M. Ross
Former Managing Partner
Carle, Mackie, Power & Ross LLP
Nick J. Rado
President
Rado Consulting
Sharon S. Wright
Governmental Affairs and
Public Relations Consultant
John W. Wright
Business Consultant
Richard E. Pope
Environmental & Engineering
Consultant
Codding Investment, Inc.
Todd R. Fry
Chief Accounting Officer
Installed Building Products, Inc.
Josh C. Cox, Jr.
Banking Consultant
Josh Cox & Associates
Marshall T. Reynolds
Chairman of the Board
Champion Industries, Inc.
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Personal and Leadership Development
"Among the most significant
accomplishments we made
during 2022, was the ability to
attract the best employees in a
difficult employment
environment."
- Brian Reed, President and CEO
Keeping in step with our mission to hire and invest in
exceptional people, we continue to look for opportunities to
provide personal and professional development for our
employees. Our goal is to attract and retain the finest talent to
ensure we achieve the best business growth and performance
outcomes. Providing professional growth and development is a
critical component of career satisfaction, retention, and
engagement of our workforce.
Diversity, Equity, and Inclusion (DEI) Committee
Founded in 2021, the DEI Committee was formed to provide
strategic guidance and direction promoting awareness around
Diversity, Equity, and Inclusion to better serve our employees
and the Bank as a whole. Their mission is to continue to
strengthen our Bank and better serve our community by
expanding our diversity, equity, and inclusion at all levels. The
Bank supports an environment where all employees, current
and future, feel that their voices and perspectives are valued,
and they have access to the opportunities which benefit them.
Amy Wakayama (Chair), Cheryl Cruz, Linda Bohn, Janet Connors,
Ray Eggersgluss, Marilee Gomez, Candy Yandell (Secretary), Daniel Ramirez, Yogita Prasad.
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Personal and Leadership Development
Mentorship Program
The leadership of Summit State Bank believes that it is the responsibility of
senior staff members to mentor junior staff members to maximize their career
development. Our goal is for all of our employees to become as accomplished,
productive, and successful in their careers as they desire. Our purpose is to
sustain professional vitality and motivation throughout the Bank, now and in
the future. This program promotes the development of self-confidence and
professional achievement, to ultimately enhance the Bank’s stability and
continuity.
Genie Del Secco, EVP and Chief Operating Officer and
Garrett Pirenian, AVP and Loan Operations Manager,
during a mentoring session.
Nick Vinas, Financial Analyst and Jason Hipkiss, VP and
Finance Manager, working together on a spreadsheet.
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Nonprofit & Community Commitment
Photo of Dutton Flats
As a local community bank, we take serving our community very
seriously and are committed to making a difference. Below
highlights some examples of our 2022 support:
Berkadia Affordable Housing Investment
The Bank invested a little over $9 million dollars to the Berkadia
Affordable Housing West Coast Partners 2021 GP LLC to support
two local affordable housing properties, Dutton Flats and Stony
Point Family Flats. The Dutton Flats project created 40 Low
Income Housing Tax Credits (LIHTC) restricted units while the
Stony Point Family Flats project will provide 49 LIHTC restricted
units.
Creser Capital Fund Donation
In 2022, the Bank donated $100,000 to the Creser Capital Fund
to fund micro-loans to fill the gap in financial and educational
opportunities for small business owners in Sonoma County.
Creser’s mission is to accelerate access to capital and unlock the
Latino economic growth engine’s force to promote the
development and advancement of Latino businesses to power
the next generation’s future.
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Nonprofit & Community Commitment
North Bay Nonprofit Event
We hosted our annual North Bay Nonprofit Event to
deepen the relationships with our existing Nonprofit
Partners by providing education, resources, support, and
fellowship. The half day event included local nonprofit
experts who shared valuable information to the attendees.
Giving Back to the Community
Contributed over $900,000 to 330 local nonprofits
supporting vital community services.
Our employees logged 1,123 community service hours.
15 Bank Officers and staff served on nonprofit boards or
committees.
Participated in the Mike Hauser Academy, which empowers
our future workforce to become leaders in science,
technology, engineering, and mathematics.
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Nonprofit & Community Commitment
Women in Conversation
We are pleased to continue our support of the speaker series
Women in Conversation (WIC), which we have been the Presenting
Sponsor since its beginning in 2016. WIC strives to build a stronger
community of women who can support and inspire each other and
spark important conversations; connecting, empowering, and
supporting women of all ages. The topic presented in the Spring
was Environmental Love featuring Winona La Duke, internationally
renowned Native American activist, and Jamie Margolin,
co-founder of the international youth climate justice movement.
In the fall, the in-person event featured renowned super-yacht
captain, TV personality Captain Sandra Yawn.
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Information about Summit State Bank
Summit State Bank (the “Bank”) is a state-chartered commercial bank operating a
traditional community banking business within our primary service area of Sonoma County
in California. We operate through five depository offices located in Santa Rosa, Rohnert
Park, Healdsburg and Petaluma. The Bank also has a loan production office in Roseville,
California. The Bank was incorporated on December 20, 1982 and commenced operations
as a California state-chartered saving and loan. On January 15, 1999, the Bank received
authority to convert its charter to a California state-charted Bank. On July 13, 2006, the
Bank completed an underwritten initial public offering and listed its stock on the Nasdaq
Global Market under the symbol SSBI. The Bank’s deposits are insured by the FDIC in
accordance with the Federal Deposit Insurance Act and related regulations of the FDIC.
We provide a broad array of financial services to small to medium-size businesses and
their owners and employees, entrepreneurs, families, foundations, estates, and individual
consumers. We believe that our principal competitive advantages are personal service,
flexibility, and responsiveness to customers’ needs. Our lending activities are primarily
focused on commercial real estate, construction, and business loans to our targeted
clientele. We emphasize relationship banking, and believe we offer our customers many of
the management capabilities of a larger financial institution, together with the
resourcefulness and superior customer service of a community bank. Through our
branches and the use of technology, we offer a broad array of deposit products and
services for both commercial and consumer customers, including digital banking, cash
management services and bill payment. We provide a comprehensive set of loan products,
such as commercial loans and leases, lines of credit, commercial real estate loans, Small
Business Administration, or SBA, loans, and construction loans. We believe that local
decision-making ensures that our lending process is fast, efficient, and focused on
maintaining our high credit quality and underwriting standards.
Summit State Bank is committed to embracing the diverse backgrounds, cultures, and
talents of its employees to create high performance and support the evolving needs of its
customers and community it serves. At the center of diversity is inclusion, collaboration,
and a shared vision for delivering superior service and results for shareholders. Presently,
63% of management are women and minorities with 60% represented on the Executive
Management Team.
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Financials at a glance (in thousands)
Total Average Loans
Net Income
14
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Financials at a glance (in thousands)
Total Average Deposits
Non - Interest Income
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Selected Financial Data
(in thousands except per share data)
Year Ended December 31
Statement of Income Data
2022
2021
2020
2019
Net interest income
$42,427
$37,606
$30,261
$22,976
Provision for credit losses
2,541
1,294 2,100
700
Non-interest income
Non-interest expense
7,495
4,901 4,448
2,662
23,511 20,333 17,671 16,063
Provision for income taxes
6,902 6,182 4,421
2,398
Net income
$16,968
$14,698
$10,517
$6,477
Balance sheet data:
Assets
Loans, net
Deposits
Average earning assets
Average shareholders' equity
Nonperforming loans
Selected per common share data:
Basic earnings per common share (5)
Diluted earnings per common share (5)
$1,115,343
$958,080
$865,854
$695,978
913,707
962,654
978,169
86,038
3,756
820,987
811,600
878,258
79,538
487
745,939
726,295
774,037
71,637
264
576,548
573,837
628,311
64,847
315
$2.54
$2.54
$2.20
$2.20
$1.58
$1.57
$0.97
$0.97
Common shares outstanding at year end (5)
6,732.70
6,684.76
6,676.51
6,676.51
Dividend per share (5)
Book value per common share (1)(5)
$0.48
13.15
$0.44
$12.61
$0.44
$11.33
Selected ratios:
Return on average assets (2)
Return on average common shareholders' equity (2)
Efficiency ratio (3)
Net interest margin (2)
Common dividend payout ratio (4)
Tier 1 leverage ratio
Nonperforming loans to total loans
Allowance for credit losses to total loans (6)
1.69%
19.72%
47.10%
4.34%
19.01%
8.53%
0.40%
1.60%
1.64%
18.48%
47.91%
4.28%
20.33%
8.65%
0.06%
1.48%
1.33%
14.68%
52.23%
3.91%
27.70%
8.15%
0.03%
1.18%
$0.44
$10.09
1.00%
9.99%
62.64%
3.66%
44.97%
9.26%
0.05%
1.16%
(1) Total shareholders' equity divided by total common shares outstanding.
(2) Annualized.
(3) Non-interest expenses to net interest and non-interest income, net of securities gains.
(4) Common dividends divided by net income available for common shareholders.
(5) Adjusted for 10% stock dividend declared; effective October 29, 2021.
(6) Allowance beginning 2021 are reported using current expected credit loss ("CECL") method, all 2020 and prior periods' allowance are reported in accordance with previous
GAAP using the incurred loss method.
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Awards
Best Place to Work
North Bay Business Journal
North Bay Gives
North Bay Business Journal
Best Consumer Bank
NORTHBAY biz Magazine
Top Community Bank Loan Producer
Super Premier Performance Bank
Findley Research
Raymond James Bankers Cup Award
Piper Sandler's Bank & Thrift
Small All-Star Class
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The Summit Way
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Summit State Bank's Relationship Managers and Chief Lending Officer
L to R: Kim August, David Hagele, Brian Rose, Doris Kanewski, Brandy Seppi (CLO), Joel Louraine,
Jackie Patrick, Scott Affens and Janet Connors
Company Contact Information
Nasdaq: SSBI
Summit State Bank
500 Bicentennial Way
Santa Rosa, CA 95403
707-568-6000
Corporate Secretary: Barbara Gradman
Transfer Agent
Computershare
P.O. Box 43006
Providence, RI 02940-3006
Investor Information:
See "Investor Relations"on our website:
SummitStateBank.com
Bicentennial
500 Bicentennial Way
Santa Rosa, CA 95403 707-568-6100
Healdsburg
1001 Vine Street
Healdsburg, CA 95448 707-433-5959
Montgomery Village
2300 Midway Drive
Santa Rosa, CA 95405 707-568-4975
Petaluma
100 Petaluma Blvd. S., Suite A
Petaluma, CA 94952 707-283-1120
Rohnert Park
10 Raley's Towne Centre
Rohnert Park, CA 94928 707-568-4955