** Shares of California-based community lender Summit State Bank jump as much as 12%, last up 10.9% at $7

** Stock set to snap five straight sessions of losses, if gains hold

** SSBI shares fell 27.8% in the previous week, with the stock down 10.8% on Thursday and 10.5% on Friday

** Company slashed dividend to 4 cents per share from 12 cents last month, as it looks to shore up capital

** Like other smaller banks, SSBI has been facing the brunt of a higher-for-longer interest rate environment

** SSBI CEO Brian Reed said last month the rate environment and its impact on earnings had led to its decision to cut the dividend

** Bank's Q2 net income shrunk to $928,000 from ~$3 mln a year earlier, as higher deposit costs outpaced the increase in loan yields

** Stock down 48.7% YTD, as of last close

(Reporting by Arasu Kannagi Basil in Bengaluru)

((ArasuKannagi.Basil@thomsonreuters.com))