8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported):January 9, 2006

Summit Financial Group, Inc.

(Exact name of registrant as specified in its charter)

West Virginia	0-16587	55-0672148
(State or Other Jurisdiction)	(Commission File Number)	(I.R.S. Employer Identification)

300 North Main Street

Moorefield, WV 26836

(Address of principal executive offices) (Zip Code)

(304) 530-1000

Registrant's telephone number, including area code

Not Applicable

(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨   Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨   Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨   Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Section 2 - Financial Information

Item 2.02. Results of Operations and Financial Condition.

On January 9, 2006, Summit Financial Group, Inc. (“Summit”) issued a News Release announcing that it expects diluted earnings per share to be approximately between $0.32 and $0.34 for the quarter ended December 31, 2005 and between $1.54 and $1.56 for the year ended December 31, 2005. This News Release is furnished as Exhibit 99 and is incorporated herein by reference.

Section 8 - Other Events

Item 8.01 Other Events

On January 9, 2006, Summit issued a News Release announcing that it recognized a $1.5 million pre-tax fourth quarter 2005 other-than-temporary non-cash impairment charge, which equals $940,000 on an after-tax basis, or $0.13 per diluted share. This impairment charge relates to $5.7 million of certain preferred stock issuances of the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation which Summit continues to own, and was made primarily due to difficulty in accurately projecting the future recovery period of these securities. This News Release is furnished as Exhibit 99 and is incorporated herein by reference.

Section 9 - Financial Statements and Exhibits

Item 9.01 Financial Statements and Exhibits

(c)   Exhibits

99News Release issued on January 9, 2006

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

      SUMMIT FINANCIAL GROUP, INC.

Date: January 10, 2006	By: /s/ Julie R. Cook
	Julie R. Cook
	Vice President and
	Chief Accounting Officer

EX-99

Exhibit 99

FOR RELEASE 6:00 AM EST, MONDAY, JANUARY 9, 2006

Contact:Robert S. Tissue, Sr. Vice President & CFO

Telephone:(304) 530-0552

Email:rtissue@SummitFGI.com

SUMMIT FINANCIAL GROUP, INC. ANNOUNCES Q4 2005 IMPAIRMENT CHARGE

MOOREFIELD, W.Va.--(BUSINESS WIRE)—January 9, 2006—Summit Financial Group, Inc. (NASDAQ: SMMF) today announced that it recognized a $1.5 million pre-tax fourth quarter 2005 other-than-temporary non-cash impairment charge, which equals $940,000 on an after-tax basis, or $0.13 per diluted share. This impairment charge relates to $5.7 million of certain preferred stock issuances of the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation which Summit continues to own, and was made primarily due to difficulty in accurately projecting the future recovery period of these securities. Although the securities are still rated as investment grade, the Company recognized the impairment charge at this time, in accordance with generally accepted accounting principles (“GAAP”).

The preferred securities are held by the Company in its available-for-sale investment securities portfolio, and accordingly the unrealized losses associated with them already had been recorded as reductions of other comprehensive income; therefore, no incremental reductions of investment securities or shareholders’ equity were required. Accordingly, the accounting treatment for the impairment charge made pursuant to GAAP had no significant effect on the Company’s consolidated balance sheet.

Despite this impairment charge, management anticipates Summit’s GAAP earnings for year end 2005 to surpass year end 2004. The Company expects diluted earnings per share to be approximately between $0.32 and $0.34 for the quarter ended December 31, 2005 and between $1.54 and $1.56 for the year ended December 31, 2005.

Summit Financial Group, Inc. is a financial holding company with total assets of $1.1 billion. Summit operates fourteen banking locations through its wholly owned subsidiary banks, Summit Community Bank headquartered in Moorefield, West Virginia, and Shenandoah Valley National Bank in Winchester, Virginia. Summit also operates Summit Mortgage, a residential mortgage loan originator located in Virginia and Summit Insurance Services, LLC, in Moorefield, West Virginia.

This press release contains forward-looking statements as defined by federal securities laws. These statements may address issues that involve significant risks, uncertainties, estimates and assumptions made by management. Actual results could differ materially from current projections. Please refer to Summit's filings with the Securities and Exchange Commission for a summary of important factors that could affect Summit's forward-looking statements. Summit undertakes no obligation to revise these statements following the date of this press release.