U.S. Markets closed

Summit Financial Group Reports Third Quarter and First Nine-Months 2019 Results

Q3 2019 Diluted EPS $0.65 compared to $0.68 for Q2 2019 and $0.55 for Q3 2018

MOOREFIELD, W.Va., Oct. 24, 2019 (GLOBE NEWSWIRE) -- Summit Financial Group, Inc. (“Company” or “Summit”) (SMMF) today reported third quarter 2019 net income of $8.06 million, or $0.65 per diluted share. In comparison, earnings for second quarter 2019 were $8.56 million, or $0.68 per diluted share, and for third quarter 2018 were $6.90 million, or $0.55 per diluted share. In the second quarter 2019, we recognized a $1.91 million pre-tax gain on the sale of our former insurance agency, Summit Insurance Services, LLC (“SIS”). Summit achieved returns on average assets and average tangible equity in third quarter 2019 of 1.41 percent and 15.55 percent, respectively, compared to 1.31 percent and 15.53 percent, respectively, in the same period of 2018.

Third quarter 2019 earnings compared to both the linked quarter and third quarter 2018 were positively impacted by increased net interest income resulting primarily from loan growth and higher realized securities gains. Also positively impacting third quarter 2019 results, write-downs on foreclosed properties were $133,000 in Q3 2019 compared to $1.2 million in Q2 2019. 

For the nine months ended September 30, 2019, Summit recorded net income of $23.7 million, or $1.88 per diluted share, compared with $20.6 million, or $1.66 per diluted share, for the comparable 2018 nine-month period, representing an increase of 15.0 percent or 13.3 percent per diluted share.  Our returns on average assets and average tangible equity for the nine months ended September 30, 2019 were 1.40 percent and 15.80 percent, respectively, compared to 1.30 percent and 15.97 percent, respectively, for the same period of 2018.

Earnings for the nine months ended September 30, 2019 were positively impacted by increased net interest income resulting primarily from loan growth as well as a higher net interest margin, increased realized securities gains and the SIS gain. These results were partially offset by larger write-downs on foreclosed properties in Q2 2019 with the goal of selling such properties more rapidly, lower insurance commission revenue during 2019 and increased merger-related expenses.

Summit completed its acquisition of Peoples Bankshares, Inc. (“PBI”) and its subsidiary, First Peoples Bank, headquartered in Mullens, West Virginia on January 1, 2019 and converted its business processes and accounts to that of Summit’s during Q2 2019; accordingly, PBI’s results of operations are included in Summit’s consolidated results of operations from the date of acquisition.  Therefore, Summit’s third quarter and nine months ended September 30, 2019 period results reflect increased levels of average balances, income and expenses compared to the same periods of 2018.  At consummation, PBI had total assets of $133.1 million, loans of $42.4 million, and deposits of $112.9 million.

Highlights for Q3 2019

  • Mortgage warehouse lines of credit increased $43.4 million during the quarter as we expanded our existing line participations and established several new participations in light of strong mortgage refinance and home purchase activity nationally;
  • Loan balances, excluding mortgage warehouse lines of credit, declined $10.6 million during the quarter, despite having increased $50.9 million year-to-date.  The Q3 2019 decline in such loan balances is principally the result of payoffs of a couple significant commercial real estate loan participations;
  • Net interest income increased 3.26 percent (annualized) compared to Q2 2019 and increased 10.7 percent year-to-date 2019 versus the same period in 2018, primarily due to our loan growth;
  • Net interest margin in Q3 2019 declined 9 basis points to 3.63 percent as compared to Q2 2019 as yields on loans declined, while deposit and other funding costs remained stable;
  • Efficiency ratio improved to 52.91 percent compared to 56.45 percent in the linked quarter and 54.25 percent for Q3 2018, primarily as result of our sale of SIS which traditionally had a low operating margin;
  • Realized securities gains of $453,000 in Q3 2019 compared to $1.09 million in Q2;
  • Write-downs of foreclosed properties were $133,000 in Q3 2019 compared to $1.20 million in Q2 2019, while the net gain on sales of foreclosed properties decreased from $156,000 in Q2 2019 to $66,000 in Q3 2019;
  • Nonperforming assets as a percentage of total assets declined to 1.45 percent compared to 1.52 percent for the linked quarter and 1.82 percent for the year ago quarter; and
  • Announced our entering into a definitive merger agreement to acquire Cornerstone Financial Services, Inc. and its wholly-owned subsidiary, Cornerstone Bank, Inc., headquartered in West Union, West Virginia.

H. Charles Maddy, III, President and Chief Executive Officer of Summit, commented, “I am very pleased to report that Summit achieved another quarter of solid core operating performance highlighted by core revenue growth, an improved efficiency ratio and continued improvement in asset quality. Further, I am encouraged that while the balances of our commercial and commercial real estate loan portfolios exhibited some modest contraction over the past quarter, we currently also have a robust pipeline of new loans located within our core footprint which have been approved and scheduled to close over the next few months. I am also particularly pleased by the opportunities represented by our pending acquisition of Cornerstone Financial Services, Inc., announced recently and expected to close at beginning of 2020. This deal will serve to combine Summit with a financially strong bank that has a similar culture, core values and guiding principles as ours, and shares the same commitment to build long-term client relationships by providing ‘Service Beyond Expectations’.”

Results from Operations

Total revenue for third quarter 2019, consisting of net interest income and noninterest income, increased 8.2 percent to $23.2 million, principally as a result of higher net interest income compared to $21.4 million for the third quarter 2018. For the year-to-date period ended September 30, 2019, total revenue was $72.1 million compared to $65.0 million for the same period of 2018, representing a 10.9 percent increase primarily as a result of higher net interest income, increased realized securities gains and the gain on the sale of SIS.

For the third quarter of 2019, net interest income was $19.4 million, an increase of 12.8 percent from the $17.2 million reported in the prior-year third quarter and a 0.8 percent increase compared to the linked quarter. The net interest margin for third quarter 2019 was 3.63 percent compared to 3.72 percent for the linked quarter and 3.53 percent for the year-ago quarter. Excluding the impact of accretion and amortization of fair value acquisition accounting adjustments, Summit’s net interest margin would have been 3.59 percent for Q3 2019, 3.62 percent for Q2 2019 and 3.51 percent for Q3 2018.  

Noninterest income, consisting primarily of service fee income from community banking activities and trust and wealth management fees, for third quarter 2019 was $3.76 million compared to $4.21 million for the comparable period of 2018. Excluding realized securities gains, noninterest income was $3.31 million for third quarter 2019, compared to $4.20 million reported for third quarter 2018 and was $3.82 million for the linked quarter, excluding realized securities gains and the gain on the sale of SIS. Q3 2019 noninterest income declined compared to prior periods primarily due to the elimination of insurance commission revenue as result of SIS’ sale in Q2 2019.

We recorded a $500,000 provision for loan losses during third quarter 2019 and 2018. Our provision continues to be directionally consistent with changes in the credit quality in our loan portfolio.

Q3 2019 total noninterest expense increased 3.6 percent to $12.8 million compared to $12.4 million for the prior-year third quarter and decreased 16.5 percent compared to the linked quarter.  Our decreased noninterest expense compared to the linked quarter is principally due to reductions in personnel costs resulting from the sale of SIS and due to increased write-downs on foreclosed properties during Q2 2019. In addition, our merger-related expenses totaled $74,000 in Q3 2019 compared to $382,000 in Q2 2019 and $86,000 in Q3 2018.

Noninterest expense for the first nine months of 2019 increased 12.3 percent compared to the first nine months of 2018. Our increased noninterest expense is principally due to expenses associated with the acquired PBI operations (including merger-related expenses), increased write-downs of foreclosed properties and to deferred director compensation plan expense of $560,000 for the first nine months of 2019 compared to $104,000 for the same period of 2018.

Balance Sheet

At September 30, 2019, total assets were $2.32 billion, an increase of $123.0 million, or 5.6 percent since December 31, 2018. Total loans, net of unearned fees and allowance for loan losses, were $1.84 billion at September 30, 2019, up $156.9 million, or 9.3 percent, from the $1.68 billion reported at year-end 2018.  Loans, excluding mortgage warehouse lines of credit, decreased $10.6 million during the quarter, or 2.5 percent (on an annualized basis), and have increased $50.9 million, or 4.1 percent (on an annualized basis) since year-end 2018.

At September 30, 2019, deposits were $1.83 billion, an increase of $197.5 million, or 12.1 percent, since year end 2018. During the first nine months of 2019, checking deposits increased $98.7 million or 13.2 percent, time deposits grew by $77.1 million or 12.7 percent and savings deposits increased $21.7 million or 7.6 percent.

Shareholders’ equity was $242.4 million as of September 30, 2019 compared to $219.8 million at December 31, 2018.  In conjunction with the acquisition of PBI on January 1, 2019, Summit issued 465,931 shares of common stock valued at $9.0 million to the former PBI shareholders.

Tangible book value per common share increased to $17.68 at September 30, 2019 compared to $15.75 at December 31, 2018. Summit had 12,400,804 outstanding common shares at Q3 2019 quarter end compared to 12,312,933 at year end 2018.

As announced in Q3 2018, the Board of Directors authorized the open market repurchase of up to 500,000 shares of the issued and outstanding shares of Summit's common stock.  The timing and quantity of stock purchases under this repurchase plan were at the discretion of management.  During Q3 2019, the repurchase of all shares authorized under the Plan was completed, whereby 52,460 shares were repurchased at an average price of $25.59 per share. The average price of all shares repurchased under the Plan since its inception was $24.15 per share.

Asset Quality

As of September 30, 2019, nonperforming assets (“NPAs”), consisting of nonperforming loans, foreclosed properties, and repossessed assets, were $33.7 million, or 1.45 percent of assets. This compares to $34.9 million, or 1.52 percent of assets at the linked quarter-end, and $36.5 million, or 1.66 percent of assets at year end 2018.

Third quarter 2019 net loan charge-offs were $711,000, or 0.16 percent of average loans annualized, while adding $500,000 to the allowance for loan losses through the provision for loan losses. The allowance for loan losses stood at 0.70 percent of total loans at September 30, 2019, compared to 0.77 percent at year-end 2018. 

About the Company

Summit Financial Group, Inc. is a $2.32 billion financial holding company headquartered in Moorefield, West Virginia. Summit provides community banking services primarily in the Eastern Panhandle and Southern regions of West Virginia and the Northern, Shenandoah Valley and Southwestern regions of Virginia, through its bank subsidiary, Summit Community Bank, Inc., which operates thirty-two banking locations.

FORWARD-LOOKING STATEMENTS

This press release contains comments or information that constitute forward-looking statements (within the meaning of the Private Securities Litigation Act of 1995) that are based on current expectations that involve a number of risks and uncertainties. Words such as “expects”, “anticipates”, “believes”, “estimates” and other similar expressions or future or conditional verbs such as “will”, “should”, “would” and “could” are intended to identify such forward-looking statements.

Although we believe the expectations reflected in such forward-looking statements are reasonable, actual results may differ materially.  Factors that might cause such a difference include changes in interest rates and interest rate relationships; demand for products and services; the degree of competition by traditional and non-traditional competitors; changes in banking laws and regulations; changes in tax laws; the impact of technological advances; the outcomes of contingencies; trends in customer behavior as well as their ability to repay loans; and changes in the national and local economies.  We undertake no obligation to revise these statements following the date of this press release.

ADDITIONAL INFORMATION ABOUT THE MERGER WITH CORNERSTONE FINANCIAL SERVICES, INC. (“CORNERSTONE”) AND WHERE TO FIND IT

This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities, or a solicitation of any vote or approval, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. In connection with the proposed merger, Summit has filed with the Securities and Exchange Commission (“SEC”) a Preliminary Registration Statement on Form S-4 with respect to the offering of Summit common stock as the merger consideration under the Securities Act of 1933, which includes include a proxy statement of Cornerstone seeking approval of the merger by Cornerstone’s shareholders and a prospectus of Summit. Summit will request effectiveness of its Registration Statement on Form S-4 with the SEC and Cornerstone will deliver the proxy statement/prospectus to its shareholders. In addition, Summit has filed other relevant documents concerning the proposed merger with the SEC. Investors and security holders are urged to read the Registration Statement and proxy statement/prospectus and other relevant documents, because they will contain important information about the proposed merger.

Investors and security holders may obtain free copies of these documents through the website maintained by the SEC at http://www.sec.gov. Security holders of Summit and Cornerstone may also obtain free copies of these documents by directing a request to Ms. Teresa Ely, Summit’s Director of Shareholder Relations, by telephone at (304) 530-0526 or by email at tely@summitfgi.com or by accessing these documents at Summit’s website: www.summitfgi.com.

Contact: Robert S. Tissue, Executive Vice President & CFO
Telephone: (304) 530-0552
Email: rtissue@summitfgi.com

            

SUMMIT FINANCIAL GROUP, INC. (NASDAQ:  SMMF)      
Quarterly Performance Summary (unaudited)            
Q3 2019 vs Q3 2018            
       
    For the Quarter Ended  Percent 
 Dollars in thousands    9/30/2019     9/30/2018  Change 
Statements of Income             
  Interest income             
  Loans, including fees   $   24,940    $   21,295 17.1%
  Securities      2,184       2,367 -7.7%
  Other      125       138 -9.4%
   Total interest income      27,249       23,800 14.5%
  Interest expense             
  Deposits      6,214       4,714 31.8%
  Borrowings      1,615       1,873 -13.8%
   Total interest expense      7,829       6,587 18.9%
  Net interest income      19,420       17,213 12.8%
  Provision for loan losses      500       500 0.0%
  Net interest income after provision for loan losses      18,920       16,713 13.2%
               
  Noninterest income             
  Insurance commissions      40       1,062 -96.2%
  Trust and wealth management fees      632       687 -8.0%
  Service charges on deposit accounts      1,312       1,215 8.0%
  Bank card revenue      924       793 16.5%
  Realized securities gains      453       8 n/m
  Bank owned life insurance income      247       250 -1.2%
  Other income      151       196 -23.0%
  Total noninterest income     3,759       4,211 -10.7%
  Noninterest expense             
  Salaries and employee benefits     7,044       6,806 3.5%
  Net occupancy expense     799       856 -6.7%
  Equipment expense     1,296       1,118 15.9%
  Professional fees     388       503 -22.9%
  Advertising and public relations     177       170 4.1%
  Amortization of intangibles     404       413 -2.2%
  FDIC premiums     -       210 n/m
  Bank card expense     455       384 18.5%
  Foreclosed properties expense, net of losses     305       169 80.5%
  Merger-related expenses     74       86 -14.0%
  Other expenses     1,864       1,643 13.5%
  Total noninterest expense     12,806       12,358 3.6%
  Income before income taxes      9,873       8,566 15.3%
  Income taxes      1,812       1,667 8.7%
  Net income   $  8,061    $ 6,899 16.8%


SUMMIT FINANCIAL GROUP, INC. (NASDAQ:  SMMF)      
Quarterly Performance Summary (unaudited)          
Q3 2019 vs Q3 2018    
             
     For the Quarter Ended   Percent 
      9/30/2019   9/30/2018  Change 
Per Share Data           
  Earnings per common share           
  Basic   $   0.65  $   0.56 16.1%
  Diluted   $   0.65  $   0.55 18.2%
             
  Cash dividends   $   0.15  $   0.13 15.4%
  Dividend payout ratio    23.0%   23.3% -1.3%
             
  Average common shares outstanding           
  Basic      12,412,982     12,374,350 0.3%
  Diluted      12,467,777     12,439,051 0.2%
             
  Common shares outstanding at period end      12,400,804     12,382,450 0.1%
             
 Performance Ratios           
  Return on average equity    13.51%   13.00% 3.9%
  Return on average tangible equity    15.55%   15.53% 0.1%
  Return on average assets    1.41%   1.31% 7.6%
  Net interest margin (A)    3.63%   3.53% 2.8%
  Efficiency ratio (B)    52.91%   54.25% -2.5%

NOTE (A) – Presented on a tax-equivalent basis assuming a federal tax rate of 21%.

NOTE (B) – Computed on a tax equivalent basis excluding merger-related expenses, gains/losses on sales of assets, write-downs of OREO properties to fair value and amortization of intangibles.

SUMMIT FINANCIAL GROUP, INC. (NASDAQ:  SMMF)        
Nine Month Performance Summary (unaudited)            
2019 vs 2018            
               
     For the Nine Months Ended   Percent 
 Dollars in thousands    9/30/2019     9/30/2018  Change 
Statements of Income             
  Interest income             
  Loans, including fees  $    72,344   $    62,624 15.5%
  Securities      7,166       7,060 1.5%
  Other      490       412 18.9%
   Total interest income      80,000       70,096 14.1%
  Interest expense             
  Deposits      17,745       12,572 41.1%
  Borrowings      4,998       5,779 -13.5%
   Total interest expense      22,743       18,351 23.9%
  Net interest income      57,257       51,745 10.7%
  Provision for loan losses      1,050       1,750 -40.0%
  Net interest income after provision for loan losses      56,207       49,995 12.4%
               
  Noninterest income             
  Insurance commissions      1,821       3,188 -42.9%
  Trust and wealth management fees      1,830       2,026 -9.7%
  Service charges on deposit accounts      3,716       3,421 8.6%
  Bank card revenue      2,631       2,343 12.3%
  Realized securities gains      1,535       828 85.4%
  Gain on sale of Summit Insurance Services, LLC      1,906       - n/a
  Bank owned life insurance income      733       773 -5.2%
  Other income      627       656 -4.4%
  Total noninterest income     14,799       13,235 11.8%
  Noninterest expense             
  Salaries and employee benefits     21,966       20,550 6.9%
  Net occupancy expense     2,602       2,528 2.9%
  Equipment expense     3,694       3,271 12.9%
  Professional fees     1,266       1,222 3.6%
  Advertising and public relations     484       461 5.0%
  Amortization of intangibles     1,300       1,261 3.1%
  FDIC premiums     88       690 -87.2%
  Bank card expense     1,367       1,080 26.6%
  Foreclosed properties expense, net of losses     2,236       843 165.2%
  Merger-related expenses     519       86 503.5%
  Other expenses     6,473       5,415 19.5%
  Total noninterest expense     41,995       37,407 12.3%
  Income before income taxes      29,011       25,823 12.3%
  Income taxes      5,293       5,201 1.8%
  Net income  $   23,718   $   20,622 15.0%


SUMMIT FINANCIAL GROUP, INC. (NASDAQ:  SMMF)      
Nine Month Performance Summary (unaudited)          
2019 vs 2018    
             
     For the Nine Months Ended   Percent 
      9/30/2019   9/30/2018  Change 
Per Share Data           
  Earnings per common share           
  Basic   $   1.89  $   1.67 13.2%
  Diluted   $   1.88  $    1.66 13.3%
             
  Cash dividends   $   0.44  $    0.39 12.8%
  Dividend payout ratio    23.2%   23.4% -0.9%
             
  Average common shares outstanding           
  Basic      12,555,411     12,366,612 1.5%
  Diluted      12,614,382     12,430,227 1.5%
             
  Common shares outstanding at period end      12,400,804     12,382,450 0.1%
             
Performance Ratios           
  Return on average equity    13.48%   13.28% 1.5%
  Return on average tangible equity    15.80%   15.97% -1.1%
  Return on average assets    1.40%   1.30% 7.7%
  Net interest margin (A)    3.67%   3.56% 3.1%
  Efficiency ratio (B)    55.34%   54.66% 1.2%

NOTE (A) – Presented on a tax-equivalent basis assuming a federal tax rate of 21%.

NOTE (B) – Computed on a tax equivalent basis excluding merger-related expenses, gains/losses on sales of assets, write-downs of OREO properties to fair value and amortization of intangibles.

SUMMIT FINANCIAL GROUP, INC. (NASDAQ:  SMMF)                        
Five Quarter Performance Summary (unaudited)                            
                       
     For the Quarter Ended 
Dollars in thousands    9/30/2019     6/30/2019     3/31/2019     12/31/2018     9/30/2018
Statements of Income                             
  Interest income                             
  Loans, including fees  $    24,940   $    24,352   $    23,051   $   22,659   $   21,295
  Securities      2,184       2,396       2,586       2,527       2,367
  Other      125       134       231       127       138
  Total interest income      27,249       26,882       25,868       25,313       23,800
  Interest expense                             
  Deposits      6,214       5,967       5,564       5,103       4,714
  Borrowings      1,615       1,652       1,731       2,158       1,873
  Total interest expense      7,829       7,619       7,295       7,261       6,587
  Net interest income      19,420       19,263       18,573       18,052       17,213
  Provision for loan losses      500       300       250       500       500
  Net interest income after provision for loan losses      18,920       18,963       18,323       17,552       16,713
  Noninterest income                             
  Insurance commissions      40       606       1,174       1,132       1,062
  Trust and wealth management fees      632       612       586       627       687
  Service charges on deposit accounts      1,312       1,224       1,180       1,209       1,215
  Bank card revenue      924       893       814       809       793
  Realized securities gains (losses)      453       1,086       (3)       (205)       8
  Gain on sale of Summit Insurance Services, LLC      -       1,906       -       -       -
  Bank owned life insurance income      247       248       238       248       250
  Other income      151       235       241       367       196
  Total noninterest income     3,759       6,810       4,230       4,187       4,211
  Noninterest expense                             
  Salaries and employee benefits     7,044       7,576       7,347       6,928       6,806
  Net occupancy expense     799       880       924       836       856
  Equipment expense     1,296       1,219       1,179       1,139       1,118
  Professional fees     388       475       403       385       503
  Advertising and public relations     177       155       153       193       170
  Amortization of intangibles     404       420       476       410       413
  FDIC premiums     -       88       -       140       210
  Bank card expense     455       473       439       395       384
  Foreclosed properties expense, net of losses     305       1,545       384       507       169
  Merger-related expenses     74       382       63       59       86
  Other expenses     1,864       2,116       2,492       1,474       1,643
  Total noninterest expense     12,806       15,329       13,860       12,466       12,358
  Income before income taxes      9,873       10,444       8,693       9,273       8,566
  Income tax expense      1,812       1,880       1,601       1,823       1,667
  Net income  $    8,061   $  8,564   $  7,092   $  7,450   $   6,899


 

SUMMIT FINANCIAL GROUP, INC. (NASDAQ:  SMMF)                    
Five Quarter Performance Summary (unaudited)                    
                 
     For the Quarter Ended 
      9/30/2019   6/30/2019   3/31/2019   12/31/2018   9/30/2018
Per Share Data                     
  Earnings per common share                     
  Basic   $   0.65  $    0.68  $    0.56  $    0.60  $    0.56
  Diluted   $    0.65  $    0.68  $    0.56  $    0.60  $    0.55
                       
  Cash dividends   $     0.15  $    0.15  $    0.14  $    0.14  $    0.13
  Dividend payout ratio    23.0%   21.9%   25.0%   23.3%   23.3%
                       
  Average common shares outstanding                     
  Basic      12,412,982     12,539,095     12,717,501     12,358,104     12,374,350
  Diluted      12,467,777     12,600,071     12,778,644     12,407,678     12,439,051
                       
  Common shares outstanding at period end      12,400,804     12,449,986     12,661,528     12,312,933     12,382,450
                       
Performance Ratios                     
  Return on average equity    13.51%   14.62%   12.28%   13.85%   13.00%
  Return on average tangible equity    15.55%   17.02%   14.80%   16.41%   15.53%
  Return on average assets    1.41%   1.52%   1.27%   1.38%   1.31%
  Net interest margin (A)    3.63%   3.72%   3.66%   3.61%   3.53%
  Efficiency ratio (B)    52.91%   56.45%   56.63%   51.02%   54.25%

NOTE (A) – Presented on a tax-equivalent basis assuming a federal tax rate of 21%.

NOTE (B) – Computed on a tax equivalent basis excluding merger-related expenses, gains/losses on sales of assets, write-downs of OREO properties to fair value and amortization of intangibles.

SUMMIT FINANCIAL GROUP, INC. (NASDAQ:  SMMF)                        
Selected Balance Sheet Data (unaudited)                            
                               
 Dollars in thousands, except per share amounts    9/30/2019     6/30/2019     3/31/2019     12/31/2018     9/30/2018
                               
 Assets                             
  Cash and due from banks  $     12,374    $   $  13,481    $   $  14,265    $    23,061    $   $  9,382
  Interest bearing deposits other banks     40,296       42,994       43,689       36,479       44,452
  Securities     265,347       269,920       297,126       293,284       288,040
  Loans, net     1,838,891       1,805,850       1,725,064       1,682,005       1,632,747
  Property held for sale     20,979       21,390       24,393       21,432       22,017
  Premises and equipment, net     43,592       42,896       39,345       37,553       36,888
  Goodwill and other intangible assets     23,182       23,585       29,349       25,842       26,252
  Cash surrender value of life insurance policies     43,216       42,976       42,714       42,420       42,208
  Other assets     35,732       36,022       33,696       38,510       36,741
    Total assets  $     2,323,609    $   $  2,299,114    $    2,249,641    $    2,200,586    $    2,138,727
                               
 Liabilities and Shareholders' Equity                             
  Deposits    $  1,832,285      $  1,797,493      $  1,789,032      $  1,634,826      $  1,651,064
  Short-term borrowings     206,694       225,343       186,292       309,084       238,403
  Long-term borrowings and  subordinated debentures     20,311       20,315       20,319       20,324       20,328
  Other liabilities     21,897       20,262       20,368       16,522       15,376
  Shareholders' equity     242,422       235,701       233,630       219,830       213,556
    Total liabilities and shareholders' equity    $  2,323,609      $  2,299,114      $  2,249,641      $  2,200,586      $  2,138,727
                               
  Book value per common share    $  19.55      $  18.93      $  18.45      $  17.85      $  17.25
  Tangible book value per common share    $  17.68      $  17.04      $  16.13      $  15.75      $  15.13
  Tangible common equity to tangible assets   9.5%     9.3%     9.2%     8.9%     8.9%


SUMMIT FINANCIAL GROUP INC. (NASDAQ:  SMMF)        
Regulatory Capital Ratios (unaudited)          
             
    9/30/2019 6/30/2019 3/31/2019 12/31/2018 9/30/2018
Summit Financial Group, Inc.          
  CET1 Risk-based Capital 11.2% 11.1% 11.4% 11.1% 11.1%
  Tier 1 Risk-based Capital 12.2% 12.1% 12.5% 12.2% 12.2%
  Total Risk-based Capital 12.8% 12.8% 13.2% 12.9% 12.9%
  Tier 1 Leverage 10.4% 10.4% 10.2% 10.1% 10.1%
             
Summit Community Bank, Inc.          
  CET1 Risk-based Capital 12.2% 11.9% 12.3% 12.0% 12.0%
  Tier 1 Risk-based Capital 12.2% 11.9% 12.3% 12.0% 12.0%
  Total Risk-based Capital 12.9% 12.6% 13.0% 12.8% 12.7%
  Tier 1 Leverage 10.4% 10.2% 10.0% 10.0% 9.9%

 

SUMMIT FINANCIAL GROUP INC. (NASDAQ:  SMMF)                  
Loan Composition (unaudited)                            
                               
Dollars in thousands   9/30/2019     6/30/2019     3/31/2019     12/31/2018     9/30/2018
                               
Commercial   $    199,391   $    204,138   $   189,248   $   194,315   $   167,972
Mortgage warehouse lines     145,039       101,607       49,355       39,140       35,910
Commercial real estate                            
Owner occupied     255,828       262,901       256,671       257,256       261,290
Non-owner occupied     567,670       574,677       585,809       573,932       541,753
Construction and development                            
Land and development     69,589       67,769       64,192       68,833       71,819
Construction       56,255       46,975       36,040       24,731       25,703
Residential real estate                            
Non-jumbo       359,399       360,752       359,107       336,977       340,783
Jumbo       69,815       70,171       69,313       73,599       72,327
Home equity       78,493       81,373       80,370       80,910       82,018
Consumer       36,982       36,715       36,046       32,460       33,664
Other       13,371       11,924       12,045       12,899       12,452
Total loans, net of unearned fees     1,851,832       1,819,002       1,738,196       1,695,052       1,645,691
Less allowance for loan losses     12,941       13,152       13,132       13,047       12,944
Loans, net $   1,838,891   $   1,805,850   $   1,725,064   $   1,682,005   $   1,632,747


...
SUMMIT FINANCIAL GROUP INC. (NASDAQ:  SMMF)                  
Deposit Composition (unaudited)                        
                               
Dollars in thousands     9/30/2019