Sonoma County’s Summit State Bank lowers Q2 dividend

As an example of tough conditions for many financial institutions, the board of directors for Summit State Bank (Nasdaq: SSBI) declared a 4 cent-per-share cash dividend following second-quarter results.

The Santa Rosa-based bank plans to pay shareholders the dividend Oct. 10, it announced Sept. 12.

Results for the second quarter, ended June 30 and reported in August, showed a sharp decline in net income to $928,000, about a third of earnings from one year before.

Those results came on the heels of the first quarter’s 65% year-over-year annual drop in net income, declining to $1.39 million, the institution reported in May. The board declared a 12 cent-per-share dividend after the first quarter.

“The current rate environment and its impact on earnings led to our decision to reduce the quarterly cash dividend,” CEO Brian Reed said in a statement. “We recognize the importance and impact of the dividend reduction on all of our shareholders, and it was not made lightly.”

Founded in 1982, Summit State Bank had assets of $1 billion at midyear.