** 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))
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