How did SSBI's Q4 2024 earnings surprise investors?

**Summit State Bank (SSBI) experienced a significant decline in net income for Q4 2024, which negatively surprised investors.** 1. **Revision of Financial Results**: SSBI revised its Q4 and full-year 2024 financial results, revealing a net loss of $6,605,000 for Q4, compared to a previous reported net income of $1,901,000. This substantial change reflects a more accurate portrayal of the bank's financial performance during the period. 2. **Provision for Credit Losses and Goodwill Impairment**: The revised results were impacted by a $6,646,000 provision for credit losses on loans and a $4,119,000 one-time non-cash impairment charge to write off the remaining balance of goodwill. These expenses significantly contributed to the net loss. 3. **Investor Reaction**: Investors were likely concerned by the news of a substantial net loss, especially considering the previous quarter's reported net income. The bank's stock had already faced challenges, hitting a 52-week low amid market difficulties. The revised earnings release further intensified investor concerns due to the unexpected turn in financial performance. 4. **Market Perception**: The bank's stock surged amid banking sector fluctuations, possibly due to Glen Burnie Bancorp's positive financial reports, which may have shifted investor focus temporarily. However, the overall sentiment remained cautious, as reflected by the high volatility in stocks like Midsouth Bank and Kentucky First Bank. In conclusion, SSBI's Q4 2024 earnings fell short of expectations, leading to a negative surprise for investors. The bank's strategic moves, such as revising financial results and addressing credit losses and goodwill, are crucial steps towards stabilizing its financial health, but the impact on investor confidence may take time to recover.