Summit Financial Group Inc (SMMF) Reports Q3 2023 Earnings of $1.09 Per Share
Summit Financial Group Inc (NASDAQ:SMMF) reports Q3 2023 earnings per share of $1.09, with net income applicable to common shares of $16.1 million.
Net interest income for Q3 2023 totaled $41.3 million, marking a 21.0 percent increase from the prior-year third quarter.
Noninterest income for Q3 2023 was $5.27 million, primarily from community banking activities and trust and wealth management fees.
Total assets as of September 30, 2023, stood at $4.6 billion, an increase of 17.6 percent since December 31, 2022.
Summit Financial Group Inc (NASDAQ:SMMF) released its earnings report for the third quarter of 2023 on October 27, 2023. The company reported robust core operating performance, with notable strength in its net interest margin. The net income applicable to common shares for Q3 2023 was $16.1 million, or $1.09 per diluted share, a significant increase from $7.98 million, or $0.54 per diluted share, for Q2 2023.
Financial Highlights
Net interest income for Q3 2023 totaled $41.3 million, marking a 21.0 percent increase from the prior-year third quarter and a 2.4 percent increase from the linked quarter. This growth is primarily attributed to the strategic expansion of the loan portfolio and optimizations in investment allocations. The company recorded a $1.25 million provision for credit losses in Q3 2023, significantly lower than the $8.0 million provision for the linked quarter.
Noninterest income for Q3 2023 was $5.27 million, primarily from community banking activities and trust and wealth management fees. This is compared to $5.42 million for the linked quarter and $4.89 million for the comparable period of 2022. Total noninterest expense decreased to $24.2 million in Q3 2023, down 11.6 percent from the linked quarter, primarily due to fewer acquisition-related expenses.
Balance Sheet Overview
As of September 30, 2023, total assets were $4.6 billion, an increase of $687.5 million, or 17.6 percent since December 31, 2022. Total loans net of unearned fees increased to $3.6 billion as of September 30, 2023, from $3.1 billion at December 31, 2022, and increased 17.0 percent from the third quarter of 2022. Deposits totaled $3.8 billion on September 30, 2023, a 0.5 percent increase during the third quarter.
Company's Outlook
Summit Financial Group's President and CEO, H. Charles Maddy III, expressed optimism about the company's future, stating, "Looking ahead as we edge closer to the culmination of our strategic merger with Burke & Herbert, we remain committed to enhancing shareholder value, driven by our foundational strengths and synergistic growth plans. With our dedicated team, resilient strategies, and community trust, we are optimistic and geared up for the opportunities and challenges ahead."
Explore the complete 8-K earnings release (here) from Summit Financial Group Inc for further details.
This article first appeared on GuruFocus.
