SANTA ROSA, Calif., Dec. 19, 2008 (GLOBE NEWSWIRE) -- Summit State Bank (Nasdaq:SSBI) announced today that the bank has successfully completed its $8.5 million capital raise after being named one of the selected participants in the U.S. Department of the Treasury's voluntary Capital Purchase Program.
This program is being made available to only the strongest financial institutions that are best able to continue to lend in their communities. The program will provide additional lending to businesses and consumers and insure stability in financial markets.
"We are pleased to raise additional capital in the current environment and believe that this strategic action is in the best long-term interests of our shareholders, our customers, and our employees," stated Thomas Duryea, President & CEO.
"Summit State remains uniquely positioned in the present banking environment as the top capitalized bank in Sonoma County and among the top capitalized in the industry. This additional capital will further bolster Summit's already substantial financial position, raising our much-watched Tier 1 capital ratio from approximately 15.5% to 18.6%," stated Dennis Kelley, SVP & CFO.
"Certainly knowing that the program is being made available to only the best and strongest banks sets us apart and provides our customers with the added level of comfort that they are banking with a safe and sound bank, so important in these unsettled times. Most importantly, the additional capital will allow us to continue to expand our relationship-focused brand of banking as there are decidedly fewer banks willing or able to lend. Our continuing prudent lending practices, which have resulted in portfolio performance ranking in the top tier of both local and national peers will allow us to continue to focus on helping to revitalize the communities in which we serve," further added Mr. Duryea.
About Summit State Bank
Summit State Bank has total assets of $350 million and total equity of $46 million at September 30, 2008. Headquartered in Sonoma County, the Bank provides diverse financial products and services throughout Sonoma, Napa, San Francisco, and Marin Counties. Summit State Bank stock is traded on the Nasdaq Global Market under the symbol SSBI. For more information visit www.summitstatebank.com.
Forward-looking Statements
Except for historical information contained herein, the statements contained in this news release, are forward-looking statements within the meaning of the "safe harbor" provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. This release may contain forward-looking statements that are subject to risks and uncertainties. Such risks and uncertainties may include but are not necessarily limited to fluctuations in interest rates, inflation, government regulations and general economic conditions, and competition within the business areas in which the Bank will be conducting its operations, including the real estate market in California and other factors beyond the Bank's control. Such risks and uncertainties could cause results for subsequent interim periods or for the entire year to differ materially from those indicated. You should not place undue reliance on the forward-looking statements, which reflect management's view only as of the date hereof. The Bank undertakes no obligation to publicly revise these forward-looking statements to reflect subsequent events or circumstances.