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):

February 11,  2010

Summit Financial Group, Inc.

(Exact name of registrant as specified in its charter)

     West Virginia                                                No. 0-16587                                           55-0672148         

(State or other jurisdiction of                  (Commission File Number)                            (I.R.S. Employer

incorporation or organization)                                                                                        Identification No.)

300 North Main Street

Moorefield, West Virginia 26836

(Address of Principal Executive Offices)

(304) 530-1000

(Registrant’s telephone number, including area code)

Not Applicable

(Former name or 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 5 – Corporate Governance and Management

ITEM 5.02. Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.

On February 11, 2010, the Board of Directors of Summit Financial Group, Inc. (the “Company”) appointed Georgette R. George to serve as a member of the board of directors.  Ms. George’s term will  expire at the 2011 Annual  Meeting of Shareholders and until her successor is elected and qualified .  Ms. George will serve as a member of the Company’s Audit and Compliance Committee and the Company’s 401(k) Profit Sharing and ESOP Trustee Committee.

On February 11, 2010, Ms. George also entered into Indemnification Agreements with the Company and its subsidiary bank, Summit Community Bank, Inc. (the “Bank”). The Indemnification Agreements supplement the existing indemnification provided for in Summit’s Restated Articles of Incorporation and the Bank’s bylaws.  The Indemnification Agreements provide that the directors will be indemnified to the fullest extent permitted by law.  They also provide for the advancement of expenses to the fullest extent permitted by law.  The obligations of Summit under the Indemnification Agreements are contractual and cannot be amended without the consent of both Ms. George and the Company, or Ms. George and the Bank, as applicable.

A copy of Indemnification Agreement with the Company is attached hereto as Exhibit 10.1 and is incorporated herein by reference.

Section 9 – Financial Statements and Exhibits

ITEM 9.01.             Financial Statements and Exhibits

(d)           Exhibits

Form of  Indemnification Agreement

SIGNATURES

Pursuant to the requirements of the Securities and 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:  February 18, 2010                                                      By:            /s/  Julie R. Cook                  

 Julie R. Cook

 Vice President &

 Chief Accounting Officer

EX-10.1

Exhibit 10.1

INDEMNIFICATION AGREEMENT

This Indemnification Agreement (“Agreement”) is made and entered into as of the 11th day of February, 2010, by and between Georgette R. George, (“Director”) and the Summit Financial Group, Inc. (the “Company”).

WHEREAS, the Board of Directors of the Company (the “Board”) has determined that it is reasonable, prudent, and necessary for the Company contractually to obligate itself to indemnify the Director to the fullest extent permitted by law in order to induce the Director to serve or continue to serve the Company as a member of the Company’s Board as well as to induce the Director to serve or continue to serve to the extent applicable, as an officer, director, trustee, member or agent of another corporation, partnership, joint venture, trust, council, advisory committee or other enterprise (including employee benefit plans) or other official of organizations with which the Company may have a contractual or other relationship, free from undue concern that he will not be so indemnified; and

WHEREAS, Section X, Item I of the Company’s Amended and Restated Articles of Incorporation, dated May 10, 2006 (the “Articles”), contractually obligates the Company to indemnify current and former officers and directors of the Company in connection with their service for the Company and service to the extent applicable, as an officer, director, trustee, member or agent of another corporation, partnership, joint venture, trust, council, advisory committee or other enterprise (including employee benefit plans) on behalf of or for the benefit of the Company; and

WHEREAS, this Agreement is a supplement to and in furtherance of the Company’s Amended and Restated Articles of Incorporation and any resolutions adopted pursuant thereto, and shall not be deemed a substitute therefore, nor to diminish or abrogate any rights of the Director thereunder; and

WHEREAS, the Director is willing to serve, to continue to serve, and take on additional service for, or on behalf of, the Company on the condition that he be so indemnified as set forth herein.

NOW, THEREFORE, in consideration of the promises and the covenants in this Agreement, and intending to be legally bound, the Company and the Director do hereby covenant and agree as follows:

1.   Recitals.  The recitals set forth above are acknowledged by the parties to this Agreement to be true and correct and are incorporated in this Agreement by this reference.

2.  Contractual Indemnification Obligations.  The parties expressly agree that the Company will indemnify and advance expenses to the Director to the fullest extent permitted by law, and that the Company’s obligations to indemnify and advance expenses to the Director as set forth in this Agreement and in the Articles are contractual and that such obligations may not be terminated or amended without the prior written consent of both the Director and the Company.

IN WITNESS WHEREOF, and intending to be legally bound hereby the parties have executed this Agreement as of the date first above written.

/s/Georgette R. George

_____________________________________                                                                                     Summit Financial Group, Inc.

Director

 By:  /s/ H. Charles  Maddy III

       Its: Chief Executive Officer_