Form 8K Earnings 3rd Quarter 2014

0000811808-14-000030.txt : 20141029 0000811808-14-000030.hdr.sgml : 20141029 20141029142508 ACCESSION NUMBER: 0000811808-14-000030 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20141029 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20141029 DATE AS OF CHANGE: 20141029 FILER: COMPANY DATA: COMPANY CONFORMED NAME: SUMMIT FINANCIAL GROUP INC CENTRAL INDEX KEY: 0000811808 STANDARD INDUSTRIAL CLASSIFICATION: STATE COMMERCIAL BANKS [6022] IRS NUMBER: 550672148 STATE OF INCORPORATION: WV FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-16587 FILM NUMBER: 141179644 BUSINESS ADDRESS: STREET 1: 300 NORTH MAIN ST CITY: MOOREFIELD STATE: WV ZIP: 26836 BUSINESS PHONE: 3045301000 MAIL ADDRESS: STREET 1: 300 NORTH MAIN ST CITY: MOOREFIELD STATE: WV ZIP: 26836 FORMER COMPANY: FORMER CONFORMED NAME: SOUTH BRANCH VALLEY BANCORP INC DATE OF NAME CHANGE: 19920703 8-K 1 form8kearnings3rdquarter20.htm 8-K Form 8K Earnings 3rd Quarter 2014

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): October 29, 2014

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)

Registrant's telephone number, including area code

(304) 530-1000

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 October 29, 2014, Summit Financial Group, Inc. (“Summit”) issued a News Release announcing its earnings for the three months and nine months ended September 30, 2014. 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

99 News Release issued on October 29, 2014

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: October 29, 2014	By:	/s/ Julie R. Cook
		Julie R. Cook
		Vice President and
		Chief Accounting Officer

EX-99 2 exhibit99earnings3rdquarte.htm EXHIBIT 99 Exhibit 99 Earnings 3rd Quarter 2014

Exhibit 99

FOR RELEASE 6:00 AM ET, October 29, 2014

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

Telephone: (304) 530-0552

Email: rtissue@summitfgi.com

SUMMIT FINANCIAL GROUP REPORTS THIRD QUARTER 2014 RESULTS

Q3 2014 Diluted EPS $0.35 compared to $0.24 for Q3 2013 and $0.25 for Q2 2014; Core revenues up 6.1 percent in Q3 2014 compared to Q2 2014.

MOOREFIELD, WV - October 29, 2014 (GLOBE NEWSWIRE) - Summit Financial Group, Inc. (“Company” or “Summit”) (NASDAQ: SMMF) today reported third quarter 2014 net income applicable to common shares of $3.14 million, or $0.35 per diluted share, compared to $2.08 million, or $0.24 per diluted share, for the third quarter of 2013, representing an increase of 51.3 percent, or 45.8 percent per diluted share. Q3 2014 earnings compared to Q3 2013 were positively impacted by a $1.54 million increase in net interest income and a $750,000 decline in provision for loan losses, but were negatively impacted by a $926,000 increase in write-downs of foreclosed properties.

Excluding from third quarter 2014 (on a pre-tax basis) realized securities gains of $128,000, losses on sales of foreclosed properties of $70,000, and write-downs of foreclosed properties of $1.58 million, Q3 2014 core earnings approximated $4.10 million, or $0.45 per diluted share. Excluding from Q3 2013 (on a pre-tax basis) realized securities gains of $132,000, gains on sales of foreclosed properties of $17,000, OTTI charges of $38,000 and write-downs of foreclosed properties of $654,000, Q3 2013 core earnings approximated $2.42 million, or $0.27 per diluted share.

For the nine months ended September 30, 2014, Summit recorded net income applicable to common shares of $7.58 million, or $0.85 per diluted share, compared with $4.70 million, or $0.55 per diluted share, for the comparable 2013 nine-month period, representing an increase of 61.2%, or 54.5 % per diluted share.

Excluding from the nine month period ended September 30, 2014 nonrecurring items (on a pre-tax basis) comprised of realized securities gains of $64,000, losses on sales of foreclosed properties of $199,000, OTTI charges of $1,000 and write-downs of foreclosed properties of $3.47 million, and from the 2013 first nine-month period realized securities gains of $116,000, losses on sale of foreclosed properties of $546,000, OTTI charges of $118,000 and write-downs of foreclosed properties of $3.08 million, core earnings for first nine months of 2014 were approximately $9.85 million, or $1.08 per diluted share, compared to $6.98 million, or $0.79 per diluted share, for the 2013 nine month period.

Highlights for Q3 2014 include:


•	Nonperforming assets declined for the eleventh consecutive quarter, reaching its lowest level since Q4 2008; foreclosed properties are at the lowest level since Q4 2009.


•	Net interest margin increased 15 basis points compared to the linked quarter and 32 basis points since Q3 2013.


•	Achieved loan growth of $54.7 million, or 5.8 percent (non-annualized) during the first nine months of 2014.


•	Core revenues increased for the fifth consecutive quarter.


•	Recorded charges of $1.58 million to write-down foreclosed properties compared to $962,000 in Q2 2014 and $654,000 million in Q3 2013.


•	Core noninterest expenses remained relatively unchanged compared to Q3 2013.


•	Summit’s regulatory capital ratios are at the highest levels in fourteen years.

H. Charles Maddy III, President and Chief Executive Officer of Summit, commented, “We are very pleased to report another quarter of solid performance improvements. We continued to enhance earnings, grow the loan portfolio, increase revenues, enhance net interest earnings, strengthen capital and reduce the portfolio of problem assets.”

Results from Operations

Total revenue for third quarter 2014, consisting of net interest income and noninterest income, grew 12.8 percent to $14.0 million compared to $12.4 million for the third quarter 2013. For the year-to-date period ended September 30, 2014, total revenue was $39.8 million compared to $37.1 million for the same period of 2013, representing a 7.3 percent increase.

Total core revenue (excluding nonrecurring items, enumerated above) was $13.9 million for third quarter 2014 compared to $12.3 million for the same prior-year quarter, an increase of 12.6 percent. For the first nine months of 2014, total core revenue (excluding nonrecurring items) was $39.8 million compared to $37.1 million for the first nine months of 2013, a 7.2 percent improvement.

For the third quarter of 2014, net interest income was $11.1 million, an increase of 16.1 percent from the $9.5 million reported in the prior-year third quarter and increased $757,000 compared to the linked quarter. The net interest margin for third quarter 2014 was 3.47 percent compared to 3.15 percent for the year-ago quarter, and 3.32 percent for the linked quarter.

Noninterest income, consisting primarily of insurance commissions from Summit's insurance agency subsidiary and service fee income from community banking activities, for third quarter 2014 was $2.91 million compared to $2.86 million for the comparable period of 2014. Excluding realized securities gains/losses and OTTI of securities, noninterest income was $2.79 million for third quarter 2014, compared to $2.77 million reported for third quarter 2013.

The third quarter 2014 provision for loan losses was $250,000, compared to $1.0 million for the linked quarter and the year-ago quarter.

Core noninterest expense continues to be well-controlled. Total noninterest expense increased 11.6% to $9.19 million compared to $8.23 million for the prior-year third quarter. Excluding from noninterest expense (on a pre-tax basis) losses on sales of foreclosed properties of $70,000 in Q3 2014 and gains of $17,000 in Q3 2013 and write-downs of foreclosed properties of $1.58 million in Q3 2014 and $654,000 in Q3 2013, noninterest expense would have approximated $7.54 million for Q3 2014 compared to $7.59 million for the comparable period of 2013. Noninterest expense for the first nine months of 2014 decreased 0.5% compared to the first nine months of 2013.

Balance Sheet

At September 30, 2014, total assets were $1.43 billion, an increase of $42.4 million, or 3.1 percent since December 31, 2013. Total loans, net of unearned fees and allowance for loan losses, were $993.3 million at September 30, 2014, up $56.3 million, or 6.0 percent, from the $937.1 million reported at year-end 2013.

At September 30, 2014, deposits were $1.05 billion, an increase of $50.6 million, or 5.0 percent, since year end 2013. During first nine months of 2014, checking and savings grew by $20.2 million and $62.4 million, respectively, or 7.2 percent and 32.3 percent, respectively. Long-term borrowings and subordinated debentures declined by 42.5 percent since year end 2013, as the Company paid down $85.1 million in maturing borrowings, which was funded by growth in checking and savings deposits and short-term borrowings.

Asset Quality

As of September 30, 2014, nonperforming assets (“NPAs”), consisting of nonperforming loans, foreclosed properties, and repossessed assets, were $58.5 million, or 4.10 percent of assets. This compares to $63.0 million, or 4.39 percent of assets at the linked quarter, and $77.1 million, or 5.55 percent of assets, at third quarter 2013.

Third quarter 2014 net loan charge-offs were $215,000, or 0.09 percent of average loans annualized; while adding $250,000 to the allowance for loan losses. The allowance for loan losses stood at $11.0 million, or 1.10 percent of total loans at September 30, 2014, compared to 1.33 percent at year-end 2013.

Capital Adequacy

Shareholders’ equity was $121.4 million as of September 30, 2014 compared to $111.1 million December 31, 2013 and $108.8 million at September 30, 2013. Tangible book value per common share increased to $11.81 at September 30, 2014 compared to $10.72 at December 31, 2013 and $10.48 at September 30, 2013.

Summit's depository institution, Summit Community Bank, Inc. (the “Bank”), is well in excess of regulatory requirements for a "well capitalized" institution at September 30, 2014. The Bank’s total risk-based capital ratio was 15.5 percent at September 30, 2014 compared to 15.7 percent at December 31, 2013, while its Tier 1 leverage capital ratio improved to 10.5 percent from the 10.4 percent reported at December 31, 2013.

About the Company

Summit Financial Group, Inc. is a $1.43 billion financial holding company headquartered in Moorefield, West Virginia. Summit provides community banking services primarily in the Eastern Panhandle and South Central regions of West Virginia and the Northern and Shenandoah Valley regions of Virginia, through its bank subsidiary, Summit Community Bank, Inc., which operates fifteen banking locations. Summit also operates Summit Insurance Services, LLC in Moorefield, West Virginia and Leesburg, Virginia.

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.

NON-GAAP FINANCIAL MEASURES

This press release contains financial information determined by methods other than in accordance with generally accepted accounting principles in the United States of America ("GAAP"). Specifically, Summit adjusted GAAP performance measures to exclude the effects of realized and unrealized securities gains and losses, gains/losses on sales of assets, and write-downs of foreclosed properties to estimated fair value included in its Statements of Income. Management deems believes presentations of financial measures excluding the impact of these items provide useful supplemental information that is important for a proper understanding of the operating results of Summit's core business. These disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies.



SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF)
Quarterly Performance Summary -- Q3 2014 vs Q3 2013
	For the Quarter Ended					Percent
Dollars in thousands	9/30/2014		9/30/2013			Change
Condensed Statements of Income
Interest income
Loans, including fees	$	13,033	$	12,532		4.0	%
Securities	1,724		1,512			14.0	%
Other	3		1			200.0	%
Total interest income	14,760		14,045			5.1	%
Interest expense
Deposits	2,288		2,487			-8.0	%
Borrowings	1,395		2,020			-30.9	%
Total interest expense	3,683		4,507			-18.3	%
Net interest income	11,077		9,538			16.1	%
Provision for loan losses	250		1,000			-75.0	%
Net interest income after provision for loan losses	10,827		8,538			26.8	%

Noninterest income
Insurance commissions	1,105		1,057			4.5	%
Service fees related to deposit accounts	1,177		1,106			6.4	%
Realized securities gains (losses)	128		132			-3.0	%
Other-than-temporary impairment of securities	—		(38		)	-100.0	%
Other income	503		606			-17.0	%
Total noninterest income	2,913		2,863			1.7	%
Noninterest expense
Salaries and employee benefits	4,026		4,050			-0.6	%
Net occupancy expense	482		454			6.2	%
Equipment expense	520		578			-10.0	%
Professional fees	380		263			44.5	%
FDIC premiums	480		503			-4.6	%
Foreclosed properties expense	298		262			13.7	%
Loss (gain) on sales of foreclosed properties	70		(17		)	-511.8	%
Write-downs of foreclosed properties	1,580		654			141.6	%
Other expenses	1,350		1,484			-9.0	%
Total noninterest expense	9,186		8,231			11.6	%
Income before income taxes	4,554		3,170			43.7	%
Income taxes	1,218		898			35.6	%
Net income	3,336		2,272			46.8	%
Preferred stock dividends	193		194			-0.5	%

Net income applicable to common shares	$	3,143	$	2,078		51.3	%



SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF)
Quarterly Performance Summary -- Q3 2014 vs Q3 2013

	For the Quarter Ended						Percent
	9/30/2014			9/30/2013			Change
Per Share Data
Earnings per common share
Basic	$	0.42		$	0.28		50.0	%
Diluted	$	0.35		$	0.24		45.8	%

Average shares outstanding
Basic	7,457,222			7,443,865			0.2	%
Diluted	9,630,293			9,621,957			0.1	%

Performance Ratios
Return on average equity (A)	11.13		%	8.49		%	31.1	%
Return on average assets	0.93		%	0.67		%	38.8	%
Net interest margin	3.47		%	3.15		%	10.2	%
Efficiency ratio (B)	51.19		%	56.22		%	-8.9	%

NOTE (A) - Net income divided by total shareholders’ equity.

NOTE (B) - Computed on a tax equivalent basis excluding nonrecurring income and expense items and amortization of intangibles.



SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF)
Nine Month Performance Summary -- 2014 vs 2013

	For the Nine Months Ended						Percent
	9/30/2014			9/30/2013			Change

Interest income
Loans, including fees	$	37,764		$	38,234		-1.2	%
Securities	5,403			4,684			15.4	%
Other	7			4			75.0	%
Total interest income	43,174			42,922			0.6	%
Interest expense
Deposits	6,864			8,074			-15.0	%
Borrowings	4,875			6,047			-19.4	%
Total interest expense	11,739			14,121			-16.9	%
Net interest income	31,435			28,801			9.1	%
Provision for loan losses	2,250			3,500			-35.7	%
Net interest income after provision for loan losses	29,185			25,301			15.4	%

Noninterest income
Insurance commissions	3,377			3,373			0.1	%
Service fees related to deposit accounts	3,291			3,202			2.8	%
Realized securities gains	64			116			-44.8	%
Other-than-temporary impairment of securities	(1		)	(118		)	-99.2	%
Other income	1,670			1,741			-4.1	%
Total noninterest income	8,401			8,314			1.0	%
Noninterest expense
Salaries and employee benefits	12,052			12,155			-0.8	%
Net occupancy expense	1,528			1,387			10.2	%
Equipment expense	1,599			1,724			-7.3	%
Professional fees	978			885			10.5	%
FDIC premiums	1,477			1,557			-5.1	%
Foreclosed properties expense	780			836			-6.7	%
Loss (gain) on sales of foreclosed properties	198			546			-63.7	%
Write-downs of foreclosed properties	3,471			3,078			12.8	%
Other expenses	4,130			4,164			-0.8	%
Total noninterest expense	26,213			26,332			-0.5	%
Income before income taxes	11,373			7,283			56.2	%
Income taxes	3,215			2,001			60.7	%
Net income	8,158			5,282			54.4	%
Preferred stock dividends	580			582			-0.3	%

Net income applicable to common shares	$	7,578		$	4,700		61.2	%



SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF)
Nine Month Performance Summary -- 2014 vs 2013

	For the Nine Months Ended						Percent
	9/30/2014			9/30/213			Change
Per Share Data
Earnings per common share
Basic	$	1.02		$	0.63		61.9	%
Diluted	$	0.85		$	0.55		54.5	%

Average shares outstanding
Basic	7,455,952			7,438,216			0.2	%
Diluted	9,626,942			9,618,328			0.1	%

Performance Ratios
Return on average equity (A)	9.35		%	6.46		%	44.7	%
Return on average assets	0.77		%	0.51		%	51.0	%
Net interest margin	3.37		%	3.17		%	6.3	%
Efficiency ratio (B)	52.69		%	56.24		%	-6.3	%

NOTE (A) - Net income divided by total average shareholders’ equity.

NOTE (B) - Computed on a tax equivalent basis excluding nonrecurring income and expense items and amortization of intangibles.



SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF)
Five Quarter Performance Summary

	For the Quarter Ended
Dollars in thousands	9/30/2014		6/30/2014			3/31/2014			12/31/2013			9/30/2013
Condensed Statements of Income
Interest income
Loans, including fees	$	13,033	$	12,515		$	12,216		$	12,507		$	12,532
Securities	1,724		1,827			1,852			1,850			1,512
Other	3		2			2			2			1
Total interest income	14,760		14,344			14,070			14,359			14,045
Interest expense
Deposits	2,288		2,335			2,241			2,317			2,487
Borrowings	1,395		1,689			1,791			2,039			2,020
Total interest expense	3,683		4,024			4,032			4,356			4,507
Net interest income	11,077		10,320			10,038			10,003			9,538
Provision for loan losses	250		1,000			1,000			1,000			1,000
Net interest income after provision for loan losses	10,827		9,320			9,038			9,003			8,538

Noninterest income
Insurance commissions	1,105		1,091			1,181			1,056			1,057
Service fees related to deposit accounts	1,177		1,101			1,043			1,124			1,106
Realized securities gains (losses)	128		(43		)	(22		)	124			132
Other-than-temporary impairment of securities	—		(1		)	—			—			(38		)
Other income	503		557			581			592			606
Total noninterest income	2,913		2,705			2,783			2,896			2,863
Noninterest expense
Salaries and employee benefits	4,026		4,045			3,980			4,024			4,050
Net occupancy expense	482		505			541			466			454
Equipment expense	520		513			566			580			578
Professional fees	380		282			316			295			263
FDIC premiums	480		495			502			502			503
Foreclosed properties expense	298		229			254			209			262
Loss (gain) on sale of foreclosed properties	70		54			75			(28		)	(17		)
Write-downs of foreclosed properties	1,580		962			928			644			654
Other expenses	1,350		1,445			1,336			1,732			1,484
Total noninterest expense	9,186		8,530			8,498			8,424			8,231
Income before income taxes	4,554		3,495			3,323			3,475			3,170
Income taxes	1,218		1,063			934			687			898
Net income	3,336		2,432			2,389			2,788			2,272
Preferred stock dividends	193		193			193			194			194
Net income applicable to common shares	$	3,143	$	2,239		$	2,196		$	2,594		$	2,078



SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF)
Five Quarter Performance Summary

	For the Quarter Ended
	9/30/2014			6/30/2014			3/31/2014			12/31/2013			9/30/2013
Per Share Data
Earnings per common share
Basic	$	0.42		$	0.30		$	0.29		$	0.35		$	0.28
Diluted	$	0.35		$	0.25		$	0.25		$	0.29		$	0.24

Average shares outstanding
Basic	7,457,222			7,457,222			7,453,370			7,450,379			7,443,865
Diluted	9,630,293			9,630,699			9,628,927			9,624,312			9,621,957

Performance Ratios
Return on average equity (A)	11.13		%	8.37		%	8.46		%	10.15		%	8.49		%
Return on average assets	0.93		%	0.69		%	0.69		%	0.80		%	0.67		%
Net interest margin	3.47		%	3.32		%	3.33		%	3.24		%	3.15		%
Efficiency ratio - (B)	51.19		%	52.86		%	54.13		%	57.31		%	56.22		%

NOTE (A) - Net income divided by average total shareholders’ equity.

NOTE (B) - Computed on a tax equivalent basis excluding nonrecurring income and expense items and amortization of intangibles.



SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF)
Selected Balance Sheet Data

	For the Quarter Ended
Dollars in thousands, except per share amounts	9/30/2014			6/30/2014			3/31/2014			12/31/2013			9/30/2013

Assets
Cash and due from banks	$	3,933		$	3,749		$	3,827		$	3,442		$	4,571
Interest bearing deposits other banks	9,300			9,970			13,424			8,340			11,532
Securities	282,401			287,883			281,865			288,780			291,258
Loans, net	993,347			992,816			962,714			937,070			939,169
Property held for sale	47,252			48,783			52,241			53,392			45,303
Premises and equipment, net	20,132			20,301			20,457			20,623			20,780
Intangible assets	7,748			7,798			7,861			7,949			8,036
Cash surrender value of life insurance policies	36,417			36,151			35,881			35,611			35,257
Other assets	28,139			28,507			27,847			31,020			31,881
Total assets	$	1,428,669		$	1,435,958		$	1,406,117		$	1,386,227		$	1,387,787

Liabilities and Shareholders' Equity
Deposits	$	1,054,454		$	1,057,795		$	1,052,630		$	1,003,812		$	1,016,735
Short-term borrowings	127,432			91,729			68,974			62,769			54,163
Long-term borrowings and subordinated debentures	114,855			158,331			159,881			199,905			199,929
Other liabilities	10,566			10,638			10,105			8,669			8,155
Shareholders' equity	121,362			117,465			114,527			111,072			108,805
Total liabilities and shareholders' equity	$	1,428,669		$	1,435,958		$	1,406,117		$	1,386,227		$	1,387,787

Book value per common share (A)	$	12.62		$	12.21		$	11.91		$	11.55		$	11.32
Tangible book value per common share (A)	$	11.81		$	11.40		$	11.09		$	10.72		$	10.48
Tangible equity / Tangible assets	8.0		%	7.7		%	7.6		%	7.5		%	7.3		%

NOTE (A) - Assumes conversion of convertible preferred stock



SUMMIT FINANCIAL GROUP INC. (NASDAQ: SMMF)
Regulatory Capital Ratios
	9/30/2014		6/30/2014		3/31/2014		12/31/2013		9/30/2013
Summit Financial Group, Inc.
Total Risk Based Capital	14.3	%	14.2	%	14.2	%	14.5	%	14.5	%
Tier 1 Risk-based Capital	12.5	%	12.4	%	12.4	%	12.4	%	12.1	%
Tier 1 Leverage Ratio	9.2	%	9.0	%	9.0	%	8.9	%	8.9	%

Summit Community Bank, Inc.
Total Risk Based Capital	15.5	%	15.6	%	15.6	%	15.7	%	15.5	%
Tier 1 Risk-based Capital	14.4	%	14.5	%	14.5	%	14.5	%	14.3	%
Tier 1 Leverage Ratio	10.5	%	10.6	%	10.6	%	10.4	%	10.4	%



SUMMIT FINANCIAL GROUP INC. (NASDAQ: SMMF)
Loan Composition

Dollars in thousands	9/30/2014		6/30/2014		3/31/2014		12/31/2013		9/30/2013

Commercial	$	83,762	$	90,096	$	93,517	$	88,352	$	83,844
Commercial real estate
Owner occupied	156,765		154,260		150,025		149,618		151,261
Non-owner occupied	314,577		314,439		297,197		280,790		279,412
Construction and development
Land and development	61,088		64,246		67,342		71,453		73,089
Construction	27,239		20,902		18,327		15,155		12,323
Residential real estate
Non-jumbo	218,125		219,569		215,665		212,946		215,058
Jumbo	51,917		52,487		51,406		53,406		59,701
Home equity	64,256		61,248		56,161		54,844		53,674
Consumer	19,906		19,777		19,106		19,889		20,472
Other	6,753		6,798		5,037		3,276		3,374
Total loans, net of unearned fees	1,004,388		1,003,822		973,783		949,729		952,208
Less allowance for loan losses	11,041		11,006		11,069		12,659		13,039
Loans, net	$	993,347	$	992,816	$	962,714	$	937,070	$	939,169



SUMMIT FINANCIAL GROUP INC. (NASDAQ: SMMF)
Deposit Composition

Dollars in thousands	9/30/2014		6/30/2014		3/31/2014		12/31/2013		9/30/2013
Non interest bearing checking	$	104,442	$	106,134	$	99,445	$	92,837	$	99,109
Interest bearing checking	195,183		187,855		195,898		186,578		186,702
Savings	255,880		243,323		228,854		193,446		193,285
Time deposits	498,949		520,483		528,433		530,951		537,639
Total deposits	$	1,054,454	$	1,057,795	$	1,052,630	$	1,003,812	$	1,016,735



SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF)
Asset Quality Information
	For the Quarter Ended
Dollars in thousands	9/30/2014						3/31/2014			12/31/2013			9/30/2013

Gross loan charge-offs	$	297		$	1,312		$	2,862		$	1,669		$	2,825
Gross loan recoveries	(82		)	(249		)	(272		)	(289		)	(742		)
Net loan charge-offs	$	215		$	1,063		$	2,590		$	1,380		$	2,083

Net loan charge-offs to average loans (annualized)	0.09		%	0.43		%	1.08		%	0.58		%	0.89		%
Allowance for loan losses	$	11,041		$	11,006		$	11,069		$	12,659		$	13,039
Allowance for loan losses as a percentage of period end loans	1.10		%	1.10		%	1.14		%	1.33		%	1.37		%

Nonperforming assets:
Nonperforming loans
Commercial	$	309		$	415		$	866		$	1,224		$	2,557
Commercial real estate	936			1,537			2,834			2,318			3,795
Commercial construction and development	—			3,601			3,653			3,782			3,761
Residential construction and development	4,592			5,248			6,599			9,048			9,128
Residential real estate	5,257			3,289			2,890			2,446			12,385
Consumer	146			129			73			128			145
Total nonperforming loans	11,240			14,219			16,915			18,946			31,771
Foreclosed properties
Commercial	110			110			—			—			—
Commercial real estate	5,815			5,762			8,523			9,903			9,961
Commercial construction and development	10,178			10,363			11,097			11,125			11,161
Residential construction and development	20,431			20,557			20,640			20,485			20,585
Residential real estate	10,718			11,991			11,981			11,879			3,596
Total foreclosed properties	47,252			48,783			52,241			53,392			45,303
Other repossessed assets	34			—			28			8			—
Total nonperforming assets	58,526			63,002			69,184			72,346			77,074

Nonperforming loans to period end loans	1.12		%	1.42		%	1.74		%	1.99		%	3.34		%
Nonperforming assets to period end assets	4.10		%	4.39		%	4.92		%	5.22		%	5.55		%



Loans Past Due 30-89 Days
	For the Quarter Ended
In thousands	9/30/2014		6/30/2014		3/31/2014		12/31/2013		9/30/2013

Commercial	$	253	$	376	$	52	$	74	$	30
Commercial real estate	1,094		1,032		1,310		1,809		1,757
Construction and development	324		156		754		1,628		154
Residential real estate	5,087		5,775		3,847		4,332		4,697
Consumer	427		585		219		292		229
Other	18		—		—		—		50
Total	$	7,203	$	7,924	$	6,182	$	8,135	$	6,917



SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF)
Average Balance Sheet, Interest Earnings & Expenses and Average Rates
Q3 2014 vs Q3 2013
	Q3 2014							Q3 2013
	Average			Earnings /		Yield /		Average			Earnings /		Yield /
Dollars in thousands	Balances			Expense		Rate		Balances			Expense		Rate

ASSETS
Interest earning assets
Loans, net of unearned interest
Taxable	$	995,270		$	12,944	5.22	%	$	935,975		$	12,468	5.28	%
Tax-exempt	8,331			135		6.43	%	5,258			95		7.17	%
Securities
Taxable	208,891			1,084		2.06	%	218,054			895		1.63	%
Tax-exempt	83,956			970		4.58	%	77,445			935		4.79	%
Interest bearing deposits other banks and Federal funds sold	11,842			3		0.10	%	7,081			1		0.06	%
Total interest earning assets	1,308,290			15,136		4.59	%	1,243,813			14,394		4.59	%

Noninterest earning assets
Cash & due from banks	3,690							4,524
Premises & equipment	20,229							20,900
Other assets	112,103							109,219
Allowance for loan losses	(11,272		)					(13,945		)
Total assets	$	1,433,040						$	1,364,511

LIABILITIES AND SHAREHOLDERS' EQUITY

Liabilities
Interest bearing liabilities
Interest bearing
demand deposits	$	191,565		$	55	0.11	%	$	183,042		$	61	0.13	%
Savings deposits	251,401			430		0.68	%	194,810			278		0.57	%
Time deposits	508,817			1,803		1.41	%	543,552			2,147		1.57	%
Short-term borrowings	123,495			98		0.31	%	34,839			24		0.27	%
Long-term borrowings and subordinated debentures	121,101			1,297		4.25	%	199,940			1,996		3.96	%
Total interest bearing liabilities	1,196,379			3,683		1.22	%	1,156,183			4,506		1.55	%

Noninterest bearing liabilities
Demand deposits	105,887							93,424
Other liabilities	10,857							7,831
Total liabilities	1,313,123							1,257,438

Shareholders' equity - preferred	9,283							9,309
Shareholders' equity - common	110,634							97,764
Total liabilities and shareholders' equity	$	1,433,040						$	1,364,511

NET INTEREST EARNINGS				$	11,453			$	9,888

NET INTEREST MARGIN						3.47	%						3.15	%



SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF)
Average Balance Sheet, Interest Earnings & Expenses and Average Rates
YTD 2014 vs YTD 2013
	YTD 2014							YTD 2013
	Average			Earnings /		Yield /		Average			Earnings /		Yield /
Dollars in thousands	Balances			Expense		Rate		Balances			Expense		Rate

ASSETS
Interest earning assets
Loans, net of unearned interest
Taxable	$	977,336		$	37,516	5.13	%	$	948,870		$	38,038	5.36	%
Tax-exempt	7,262			376		6.92	%	5,560			298		7.17	%
Securities
Taxable	213,089			3,565		2.24	%	220,669			2,851		1.73	%
Tax-exempt	80,814			2,785		4.61	%	76,021			2,776		4.88	%
Interest bearing deposits other banks
and Federal funds sold	9,737			6		0.08	%	7,706			4		0.07	%
Total interest earning assets	1,288,238			44,248		4.59	%	1,258,826			43,967		4.67	%

Noninterest earning assets
Cash & due from banks	3,790							4,430
Premises & equipment	20,414							21,006
Other assets	114,203							111,948
Allowance for loan losses	(11,887		)					(15,726		)
Total assets	$	1,414,758						$	1,380,484

LIABILITIES AND SHAREHOLDERS' EQUITY

Liabilities
Interest bearing liabilities
Interest bearing
demand deposits	$	189,581		$	162	0.11	%	$	178,911		$	193	0.14	%
Savings deposits	232,730			1,137		0.65	%	195,907			875		0.60	%
Time deposits	520,937			5,566		1.43	%	566,172			7,007		1.65	%
Short-term borrowings	92,963			209		0.30	%	25,579			50		0.26	%
Long-term borrowings and
subordinated debentures	151,541			4,665		4.12	%	203,019			5,997		3.95	%
	1,187,752			11,739		1.32	%	1,169,588			14,122		1.61	%
Noninterest bearing liabilities
Demand deposits	101,006							94,139
Other liabilities	9,609							7,698
Total liabilities	1,298,367							1,271,425

Shareholders' equity - preferred	9,286							9,319
Shareholders' equity - common	107,105							99,740
Total liabilities and shareholders' equity	$	1,414,758						$	1,380,484

NET INTEREST EARNINGS				$	32,509						$	29,845

NET INTEREST MARGIN						3.37	%						3.17	%



SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF)
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures

	For the Quarter Ended									For the Nine Months Ended
Dollars in thousands	9/30/2014			6/30/2014			9/30/2013			9/30/2014			9/30/2013

Core earnings applicable to common shares	$	4,102		$	2,907		$	2,420		$	9,850		$	6,984

Realized securities gains (losses)	128			(43		)	132			64			116
Applicable income tax effect	(47		)	16			(49		)	(24		)	(43		)
Gain (loss) on sale of foreclosed properties	(70		)	(54		)	17			(199		)	(546		)
Applicable income tax effect	26			20			(6		)	74			202
Other-than-temporary impairment of securities	—			(1		)	(38		)	(1		)	(118		)
Applicable income tax effect	—			—			14			—			44
Write-downs foreclosed properties	(1,580		)	(962		)	(654		)	(3,471		)	(3,078		)
Applicable income tax effect	585			356			242			1,284			1,139
	(959		)	(668		)	(342		)	(2,272		)	(2,284		)
GAAP net income applicable to common shares	$	3,143		$	2,239		$	2,078		$	7,578		$	4,700


Core diluted earnings per common share	$	0.45		$	0.32		$	0.27		$	1.08		$	0.79

Realized securities gains (losses)	0.01			—			0.01			0.01			0.01
Applicable income tax effect	—			—			—			—			—
Gain (loss) on sale of foreclosed properties	(0.01		)	(0.01		)	—			(0.02		)	(0.06		)
Applicable income tax effect	—			—			—			0.01			0.02
Other-than-temporary impairment of securities	—			—			—			—			(0.01		)
Applicable income tax effect	—			—			—			—			—
Write-downs of foreclosed properties	(0.16		)	(0.10		)	(0.07		)	(0.36		)	(0.32		)
Applicable income tax effect	0.06			0.04			0.03			0.13			0.12
	(0.10		)	(0.07		)	(0.03		)	(0.23		)	(0.24		)
GAAP diluted earnings per common share	$	0.35		$	0.25		$	0.24		$	0.85		$	0.55



SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF)
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures

	For the Quarter Ended								For the NIne Months Ended
Dollars in thousands	9/30/2014		6/30/2014			9/30/2013			9/30/2014			9/30/2013

Total core revenue	$	13,862	$	13,069		$	12,307		$	39,773		$	37,117

Realized securities gains/(losses)	128		(43		)	132			64			116
Other-than-temporary impairment of securities	—		(1		)	(38		)	(1		)	(118		)
	128		(44		)	94			63			(2		)
GAAP total revenue	$	13,990	$	13,025		$	12,401		$	39,836		$	37,115


Total core noninterest income	$	2,785	$	2,749		$	2,769		$	8,338		$	8,316

Realized securities gains/(losses)	128		(43		)	132			64			116
Other-than-temporary impairment of securities	—		(1		)	(38		)	(1		)	(118		)
	128		(44		)	94			63			(2		)
GAAP total noninterest income	$	2,913	$	2,705		$	2,863		$	8,401		$	8,314


Total core noninterest expense	$	7,535	$	7,514		$	7,594		$	22,543		$	22,708

(Gains)/losses on sales of foreclosed properties	70		54			(17		)	199			546
Write-downs of foreclosed properties	1,580		962			654			3,471			3,078
	1,650		1,016			637			3,670			3,624
GAAP total noninterest expense	$	9,185	$	8,530		$	8,231		$	26,213		$	26,332

GRAPHIC 3 sfglogo.jpg begin 644 sfglogo.jpg M_]C__@`(5T%.1UH"_^``$$I&248``0$!`$@`2```_]L`0P`#`@(#`@(#`P,# M!`,#!`4(!04$!`4*!P<&"`P*#`P+"@L+#0X2$`T.$0X+"Q`6$!$3%!45%0P/ M%Q@6%!@2%!44_]L`0P$#!`0%!`4)!04)%`T+#104%!04%!04%!04%!04%!04 M%!04%!04%!04%!04%!04%!04%!04%!04%!04%!04%!04_\``$0@`9@$P`P$A M``(1`0,1`?_$`!\```$%`0$!`0$!```````````!`@,$!08'"`D*"__$`+40 M``(!`P,"!`,%!00$```!?0$"`P`$$042(3%!!A-180'EZ@X2%AH>(B8J2DY25EI>8F9JBHZ2EIJ>HJ:JRL[2U MMK>XN;K"P\3%QL?(R;GZ.GJ\?+S]/7V]_CY^O_$ M`!\!``,!`0$!`0$!`0$````````!`@,$!08'"`D*"__$`+41``(!`@0$`P0' M!00$``$"=P`!`@,1!`4A,08205$'87$3(C*!"!1"D:&QP0DC,U+P%6)RT0H6 M)#3A)?$7&!D:)B(_`OC*U@W12+J+F*^F7D>8VDF@_;;/4-.B_T=;QQ"2IN$7"RD%00Q'?/>@#]75E M&:#*-PH`F:4;:B644`"2C>*E:49H`B:48I8I1NH`?YHJ)I1F@!\2@DWC MVY`H`^Y#.%'U]J?%*,T`,EQFF'&!0!)%C!IKXW"@!K8S4B8V4`(V*9QNH`EX MVBF2%0M`'%?$+XL>'OAE8>?K-V$F?_56;BJ]ER1/!S#%\J]E#<\J?A<*``.PKZ-_8I(' MBOQ-G_GTC_G7%AOXD3RL#_O$3D_^"PNO7>F_LN65A;S".WU+7((;A#UD54:0 M#_OI0?PKD/\`@CW\6]!O/A9KOP_:Y@A\165^^H1VK862X@DY+K_?VG@CM7OG MV9^BFY9$XP17REXT_9@U>7]OGP/\8=$LT;11I\L&MRE@"DJQLD;*O4DAL$_[ M(H`^KE.6.$6(/^K?_`+YJ,LI/H1V-`#HY$.0/ MF/H.:=O&WD$$]B.:`(BS;O\`5/\`]\T]77:3GB@!6?*<(Q'J!3$8%B""I'8C M%`$-Y:VNHP26MU#%=0R<-#-&)$;ZJ>#3H;6#3K2."WMTMX(^$ABC"*/95'`H M`^(?VIOVO;O2OVF_A9\)?!^M2V<[:Q#/XAGM"K!HS]VU)YZ]6'45]QP2HSN, M@_,<4`2RP\]::8>!S0`^*'@\TUX?F'-`#6AYZU*D/R=:`&M#[TSR?FZT`)>3 MPZ?:/<7,T<$$:EGEE8*J@=22>E?-'Q8_:VM[03Z;X+07,PRK:O,/W2_]]U_4IK[4;J6\O)F+/-,VYC_`(#V%106 MDMW)?BYXA&@Q M2'-OHMF0]Y<]/E"]2?4#IWKO?V,/C7\/?B9XR\5Z7X'\&7WA\6=M'))J%Y2FKNBW6FRS8`2YC.Y!N/W0V-I/H37X"7$'C'X$_$.:VF_M'PIXNT2X,;[ M&,,\$@/8]P>OH17$?3GZ`_LZ_P#!7_4]*^RZ1\6]*&L6HVI_;VF)LN$&?O21 M=&P/[N2?2OO#Q?<6O[77P2MKWX3_`!/ET".:X69-=T?$DB%4.8)$ZJ]?MU:P MOH)036FR=0L MUD6.]5/8C'`(.?E/K7NO_!-#XG^/?BO^SKXNU35--_%UIIMEJD!N;;_A%?W4,B@\KO^^" M/?%>Y?"OXE_&+]MSP7X=\,?#SQ%>>!?!7AW2+.S\0^,;I"U[JE^(D\V.'C/R M\G/0?M3_"WX[?L07>D^-=%^+FM:]X>FN/LOVFXN&:6"4C(62)^&4^ MHKU#X0?\%!?B=^TGX<\*?#?P)8V5M\5]0\U-9\07D)%I86R#_CY1>A?&3M]< M8S0!%^T-^Q7\<_`'P]U/QUH?QO\`$/B?7-+@-_>VH& M*V_^":/[4!)75>&BD`^]@]"*`.-_;\^*O M[4_P9TN.ZU7Q5I6G>#M"#S3IUNSV]BQ4,QACV]/0,>"?;%>6?\$]?VX_'D/Q@LOA M-\2=1N-8LKYY+.UN-0YNK&[0GY&;^)3C'/2@#T#]N[XC_M4_!33-1\5V_BC0 M]+\"37_V*WCT=%^U0!^(P^_!8G')7I65^P?JGQ6_:'_9;^*L&G_$6YTWQ;=Z M_'!%KNIA[AH(C;QM(J`R_:PTSP]I_BA;?Q3!XB-K%X MAGC>8"X#$>)/#4$C&\TN#1C"\ MXP0%#D?+S@Y]J`/IV5N>M,+<#F@"2)N#S37;YAS0`UFYZU(C?)UH`:[X')KS MGXH?'+P]\+H"M[/]KU-@?*T^W8&0G_:_NCZUG4FJ<>9F%:M&C!SD?'GQ0^-_ MB3XIW&V_G^QZ6K;H]-MF(C![%N[GOD],UY\Y.VOGJE1U);G(6T@ MFN[F.""-YII6"1Q(,L['H`*^@M6U30?V+OA$_C?Q#:1WWCO45,&G:=,XR)". M$7'0`8+MUQQ7KY/@I8[%PHKJSHPJ4%*O+:*_$_,GXD_$CQ#\6O&%_P")_%&H M/J.K7C$LS<)$O:-%Z*H'``K[#_X)/''Q'\=_]@V+_P!#K^@,ZHPP^45*4%9) M)?BC@P%1U,;&2UA(O;5,?> MEB'##KDIT[UY3^QI^U/XF_9=^*ME=Z?=E_#.IW$5OK6DS,?)GB+!?,`_AD3) M(8<]1T-`'0?M5WD.H_MZ:]>6[;[>Y\26<\3>J,4(/ZU^].EM_H-MS_RRC_\` M0!0!\+_\%E3G]F[P_P#]A^'_`-`>JG_!&WG]GGQ,/77F_P#0!0!Y?_P6HT6W M63X:ZP"WVETN[4KGY=H7(/UKZL_X)F^&$\+?L:^!HU:.1[P7-Z[HNTDR3N0# MZD#`S[4`9'_!4TY_8]\3]#_I5M_Z%7S1_P`$5]`L9-2^)&MM#G4D2WM%F)X6 M(D,0!ZD@6>"*_#?_@GC-)9?MP^'$MW M:!&N[R,K&<`ID_+]/:@#[@_X+'Z-O)% M/_X(U^$K;2OV>O$>O)(6N]3UZ6WE4H!M6&--OS=3GS#P>E`'U%^U:<_LZ?$G MO_Q(;GK]#7Y4_P#!(C2;:_\`VI;FYF1FFL?#TT\!#$!7S&N2._!-`'[83G;$ MH!QAU'_CPK\!O$%W-HG_``4!NYM/E>QEC\<`));G85#2@,!CU'6@#]/?^"I& MG6^H_L<^*)+A/,>UO;:XA;."D@?@_J:\D_X(P''P/^('_8R+_P"DD=`'Q!X' M/_&P>P_['-__`$,U^^\+?,_/\1H`9*W-,+<"@"2)N#37;YA0`UGP>:JZKKMC MH.F2WNH745E:1`EYYVVJO?\`'Z4FTE=DRDHJ[/E7XK_MH/)I_@M3:VN"K MZI.OSO\`]65BS,3W)KP:]9U9:;'Q^,Q3Q$ M]-D(S\4Y$>=E1$=W8X5$7+,?0#N:YD[GGI7=D?5OP3^%^F?!WPQ>>/?'+6]C MI?M%?$VZUVX)BT>U+6^E6F,>7`&X M9A_?;J3^%?L?!.7VG+$R7PJR]6=V8/ZOAHT%N]6>1$X%?<__``2@;'Q(\=C_ M`*AL7_H=?>\0O_A-K>B_-'F99_O<#ZE_:X_:&U7X!^,_@O);S1IH6O>(O[,U M>*3`WPNA56W'[NQB&_"OI%I`[;E(93R"#U!K\'/T<;,JR(59596&"K#((/4$ M>E?@#_P4'^%ND_"/]JCQ?HVAQI;Z7<[-0AM8TVK;^<"3&/8,"?\`@5`'._$6 MVO[7]IG28M125;U;[2]ZS?>^ZF/TK^A?3&_T*V_ZY1\'_<%`'PE_P68U"WB_ M9Z\,6KS(EQ/KJ-%$3\SA4;<1],C/UJ/_`((WG'[/?B7_`+#S?^@"@#S_`/X+ M4G.@_#'_`*[7O_H%?7/_``3\;_C#WX:?]>#_`/HUJ`.*_P""I;9_8^\3_P#7 MU;?^A5\]?\$53BQ^)7_7:WH`_2KQ>W_%,ZQ_UY3_`/H!K\-/^"?9Q^W'X;_Z M_KS^9H`_0'_@KDV?V3/^XO!_,T[_`()!''[)]W_V,U__`.@04`?0G[5;9_9S M^)7_`&`;G^1K\MO^"/AQ^TUK/_8KS?\`H45`'[13M\B_]=$_]"%?@)XS./V^ MKX_]3RG_`*.%`'ZD?\%.FS^QKXS_`.OBW_\`0Q7CG_!&)L?`_P"('_8R+_Z2 M1T`?$/@@_P#&P6P/_4YO_P"AFOWTB;YW_P!XT`/EB.:88C@4`211'!IDD>"* M`/)_BS^T)X;^&BO:)*FKZV0=ME`X(C/K(W\/TZU\?_$+XI^(?B==B?6;UIK= M"3%:0`K!'^'<^YKR<56O[D3YS,,4Y/V4/FKI$]CH M]]=I*=J-#`Q#'T%>?&+>R/$C3E)V2.[\,_LX>/O$\D>W1'TR$OM:74#Y>T=S M@\FOHGP1\%?"'P"T:X\4^)=2MY+JSA,D^IWI"P6X[E%/_P"NO3P>#G4FM-7L MCV,)@^3]]6T2/S__`&T?VS)OCS?/X7\,%[;P):RAR\@(DU&0=)&]$'9>_>OE M,5_2N3Y>LOP<:77=^K/F<;B'B:SGTZ`1D5]T?\$GUW?$CQWZ_P!FQ?\`H=X':_\%=/`7B#XD^&/A9X?\+Z5]?@Q^CGT?\`$K]K/X1?"WP[<:OKGCO1S%$F];:RN5GN)C_=2-22QY'2OS`^ M%_P9\:?\%&/VJ=8^)-_I[Z-X#BU!)IKRZC;RF@B8>5;19'SLP7+8X&XT`8W_ M``5(^&VK?#G]J#_A*!;F/1]9M[>XTZ>*,HB/"`#%NZ;QM'YU^BGP:_;T^#7B MKX0:-K^J>.M*T&\AL4COM,U&X"744L:`.`A^9\XR"`&XUBXN,^;<(I&0B[%7GK^=3?\$V/VT/"'P, M\'7W@;7M)U2>\U'5A' M?!^N6?B)=(BGN+J]T^42PAI!A4#KD$XY..E?7/\`P3._:'\#>,?V>O!_@B#6 MK:S\7Z2DMG-HMS*%GDPQ<21J?O(58'(Z'(/2@#E_^"H_QY^'MQ^SUX@\%6OB MS3K_`,5S7\4']DV:`/M#_@JS^TYX"\<_!WPYX.\&^,-,\27MYJ8N[Q-+D$ZI;HK8W.O"L6* M\=>M:G_!)3]HWP)X>^$^I_#O7MGVOB&[T=[>'1UE#7;O(/DQ&.<'UZ5^8G_ M``3&^+GA3X0?M&2W_C#5HM"TW4-%DT^.^NOEB24E"-Q[`[3S0!^S?BOXX?#[ MP?X,T_Q3K/C'1]/\/7V'L]1ENE\JZQ\V(CGYS@'@9K\$O$/Q,T'4OVM;KQQ' M/(OAQ_%BZB+@H2?($H.['TYQ0!^AW_!2C]K'X:>+/V9I?#7A+QAI/B35=?O( M&6WT^43-%`IW.SX^XV,`!L'->9_\$E/VBO`WPV\->-_!WB_Q!8^&KF\OXM3M M+C4I1#'*#&L3(&;`R"H./>@#YH\?2R_L^?MR3ZSXFM)FLK#Q&NJ@QC'VFTD; M^#=3MOB/XEUFYAAT[PWHDHENI2 MY&0ZC)0@9X/?`H`^JI5.::5.!0`Z,A5.2*BF:-P4Y)JRGA3P/X8L(XFTS1=,MRQV++''&I/?&:B&'4G[ ML;LY'2H0]YG/ZK\8?A/X$2ZCNO%'AC3&@;,T"7,)D#>Z#G->=^)_V_O@AX2D MG@7Q2-1N(0"(--LI'W9_NN%V_K7NX7(\9B?@IV7FTV M.WG@\%>#[JZN`2L=WK,HCCZ_>"H22,H+-XMUN2XLXF+ M0:9;CRK2$^HC'!;'&XY)K]+R;AR&!DJ];6?3R/F,=FDL0N2&B/-*`*^V1X`' MI7W5_P`$GAGXD>._^P;%_P"AU\[Q%_R+*WHOS1ZF6?[W`^W?C1\?_!WP<\2> M&K'7M,U'5-;U%97TV'2[`W4XVC:^P+SG!YQVKQGQ]J'P&^.NG>(M;\>RE,:GE4E(!9C_=[U^.PRNM4I1K)JTMOOL?;RQD(SE#L.?`]C-X%LX;WQ/8I?Z:^IPM+;;7^YY@8D!B>GO7V%\0/'WAGX!_ M#6Y\0:A!]@\/Z8L67QQHMAK?AG[+_:)34HP1$FS=O!/W6QW%?-G[.?P`_9/^,\$G MB#P7X%L+V72;GRIK?48V;RWS\K,C<,#C(-<\<'4E1G72TB[,U=>*G&'5GK_Q M0^(WPF\2^,X_V?\`Q;:B236+5!'I[0[;:1>2D88?=/R'&/2I_%FB?!_]EKX9 M3LW@[2](\,W4J:=/:Z?IZ-YWFG;M?(RP.>M8?P5\5_ M!BU^*]D^A_L_:OX`UVYN7M['7[OPQ]E21GSN(D'*!AZXZUT0RJK.@Z\G9:V\ M[&*?`'AB[\7:LJ"&2328G5"6`1';L2>@K"&7UIUI48 MK6*N_NN6\3!4U4Z-V/1?VF_"WPAM/!$WC3XH^"]*\2Z=X>@"1R7E@MS)!&[A M=L>>@)QQ5N+]G#X.>,_"6CQ/\-?#%SHY@2XM+:;2X]L:LH(P,<<&N25"2I*L M]FVONM_F="J)S?!+1[Z&^L_A5X1M;J`[HYHM*C#*?4<5Y'\1]2_9G M^&?Q+D6#X:Z5XI^(UO+]K:S\,Z"+N^AE&#N9E&$8<=2"*VPF$J8R?)#IJ_)& M=>O&A&\NI-HNO_!7]IGQY80^,O@M>6?C&\MW,AS26+ZA!X2-Q:P%,!QYBKC``&:]#^QZLJCA%IV MMKZ_\,7Z;B,]P*G#Y36 MKN:?N\KMKW[%5,;""36MU?Y':MX6_9/T;X7Q?%+3_A[X0O-`@FC`N;#2(S-% M*S`!67J&!/(->OZA^S#\&/'`M--?VW/Z5R&O?MQ_&_7KF.8^.[O3]B[?+ ML$6-#[D8ZU^KT>&L!27O0N?&5,TKS>C.(UK]H'XF^(ENUU'QWK=TMV-LZFY9 M0X]..E@K4X)'GSQ%2INRA(@EE:2 M0>9(QR7#_J& MQ?\`H=?.\0O_`(3:WHOS1ZN6?[U`]Q_:W\1W_A/]J'X':MIFAWGB2^MH=0,> MEV#!9I\J`=I/'`Y-;?QC^*?B'XB?LY_%J+6_A[K7@B.UT1WBDU:5'6X)ZA=O M0BOSB-&$J6$JN=FK:=_?9]*ZDE4KPY=._P`CYNE^$UC\;_B)\)O"MY));S3_ M``V6>QN8V*F"Z3F)\^F[&:[;XG?&74_B!^Q1X\\*>+818_$'PC-:Z=K%F>L@ M65`EPH_NN!G_`/77N5?W]2C#K3:?R@;&/>L/3;_P`/_LX?M7^&_P#A M'=5T@>!_'%C'I-S:V5TC)9W<*@))A>F[H#ZFO,H4Y?5GATOC4W\UM^1USG%U M?:7^'E7^?YF)\>/A`/C;^V/XJTFVGDL=>L_"D.H:/>1,08+R.0F//^R22#^% M5OC7\:;WXP_LA)'KMJ--\8Z#XDL=,UVP)^:.=)0/,QV5L`_C7737M_JRZT^3 M[I?\%&$G[-5GTE?[T=Y^REI-MX]_:(^+OC+7HHKW6M.N+32[%)5!6T@\H?<4 M_=SZU]ERD,5R%;D$;@#@^M?,9Q)K%A"6_CBGL[>U;-O",GY2VWGUS7T<.:AB*N(BKW<(_*R;_!'EMJ=&%-_WG^+L M>D_'#XN0_&O_`()Q:YXG1LW4MC!;7R'K'=1S*LJ^XW#@]Q7UI\.'_P"+?^%^ M1_R"[;_T6*^?Q]+V&&]EVJ2_)'JX>?M)\W]U$GQ"UNY\/>`?$FIV<33WEEIM MQ25/`]VK&@W'`5.7[4HI^FK*JI/$1OT3_`$-?0?VL[R[^)GA;PCXE^&&O M>$K[7Y)8K*YU.2-P=H.<%17SSX)_:,\6_!#X:^/I-&^&E_XGTFW\3:D]SKAE M`LX`S8^9`-S`'KVKW,+EM.SI2J^[+E:?S:M]YY=7%2E)24-5?3Y(Q-9^'*Z) M\(/@QX/O-;MK[2?B3XRDUS5[O3R6LHB0KK!'VV9&W![[O2OTBLM/M=-T^.PM MK>&"RA00I;(@$80#&-O3&*XLWK.4865KN3^?-;\D=F!II7N[Z+\C\R?CA;1> M`;_]HWP3HI!\.27FF:LEK$F(K&X>12Z`=`6K]*O"$G_%&>'O7[%!^'[L5OG. MN&HS>\M7Z\L3#`O]]47;3\6?E[XKOO[/^#7BN[$I M[5[SX^OO&/[8'C#P5INE?#;5O"&F>'M9CU"Z\2:Z%CDAC4#*1*.23UQTX%>Y M74*3CBJDK*#EIWO%:'GT^:<'1BM[:]M3*_:0\3_M._%\7.C>%_`M]X.\+O\` M*5BN%^V7*XP?,<'Y0>>!VZU\FM^P_P#&PY/_``@]UR[.?&4,5BZG,XZ"C]A_XV$<>![K_OXO\`C2']A_XV$_\`(CW/_?Q? M\:]S_6#+_P#GXCS_`.S<1_*(?V'_`(V#_F1[K_OXO^-._P"&'OC9C_D1[G'K MYB_XTEQ!E_\`.@_L[$?RB#]A[XV$?\B1<_\`?Q?\:3_AA_XV9_Y$>Z_[[7_& MA\08#^=!_9V(_E'']A[XV#_F1[G_`+^+_C2']A[XV#_F1[K'_71?\:?^L&7_ M`,Z#^S<1_*`_8>^-A/\`R(]U_P!_%_QH_P"&'OC83_R(]S_W\7_&DL_R_P#G M#^SL1_*#_L/?&S'_`"(]U_W\7_&OK;_@G3^S]X^^#_CCQ?>^+O#TVCVMY8QQ M022,#O<-D@8KQ@)/`^M?G?UF'-AG?X-__``)L^F5&5JO][;[CQ+X5_L^>-O"WQJ^% MWB+4=/MHM*T+P6-'OI4N59H[K^Z!W'O63^VU^QYX@^*M];^)_AV%B\07\::? MK=H]P(HKRW!#([9X+(RCZ\>E>U2S6E2Q].M?W+6?WM_Y'!/!3GAI4^M[K\#6 M\$_LI7'Q'^)FN^+?B]X1NP(F1@P4LQ.`<8S6$LXE2Q,(TI?NHV6W3J M7'+XSI-S7O.Y-\(OA7\0Q^T7#\0O%NCV^EP7'A*'3+KRKM9F%VC?,..H(&[/ MJ:X/]KW]C7Q'X\\(=.>X$,5P(F#)-@\%ABMZ.9T,/CHS MB[PY5%_+8B>$J5<,XOXKW.S\7?`CX@_#;XIW'Q.^%7]G:AJ&KV<-OK_A;49C M%#>R(H42H_16%=3X$^*?QN\3^++.QUKX26?AS2%N1'>:C/J:N8XQGVQM%8BA/DC&\6_N/$[_\`9G^*\OAGQ_X8L]/LK33_ M`!CXR6]N[S[8NY=+#`M@==S8Z5[_`&O[&/P:2)8V\`:9(44)O9I,L``,G#8S M6N+S9TTOJDK7=WIY)+?T(H8!3O[9>AX#XO\`V2O'>A^#OC?\/?!^F03^"_$: MVU_X>26[51;7'FJ98`"?\` MMM,[5`5F`^@SBMJ]?!X^E^]J6E>^W5Q2?XH4*=?#2M3C=;?B?2GV<7UDT5S" MI66/;)$>001AE_4BOD'0?AG\9OV5-9UBR^'>EVGQ%^'-[/)>P:1?7(@N].D9 MLLD9_B!)S^%>/E]6A:IAL0[1E;7LUU.[$PJ+EJTU=KH-T[PQ\8/C/\>/AGXR M\3>`;?P7HGAJ2XDF,FH+++)N4@`)G->I?LZ?!W5_!_@#Q?H7BNRAB&KZ[J-T M(HI1*KVTY^4GMG!Z=J[\9B:%.DJ-"?-RJ.OHY/\`4X\/0J3G[2HK7O\`DD>% MZ#^QSX^U'X1^)_AAJUS%I=CH&L_VOX'U^&X#E!O++"Z#E5&`2?5S7;V'Q+_: MATC2[?1+KX4Z)JVO"(JNMQZFJVDA48$CCJK'KMKKJU\!CKPJSY4GS)^J3:^\ MB,,1A]81O?3_`()6\'?L5:EK'PB^(UGXZUQ;KQYX]=+N^U"#)BLYHSN@51_$ M(VQ]14FB^-/VF?`^@V?A&3X9:/XBO[.W-I9^(8=1"P2K&-B2RJ>5)`W$>]9R MQ6$S!RIUY7W:6_!';A M*#I7OY$\L0'K^9IIBX')_,UX%V>A9#XH05/7\S37BP1U_,T[A9#6BYZG\S4B M0C9W_,T7"R$:$>_YFF>5\W4_F:+L+(E\D%1U_,TV2(`#K^9HN%ABQ<]3^9J3 MR1[_`)FBX60V6(!N_P"9H2/`[GZDT7&2+&"V<#([U'*FYB#@_6D`C1`$'`R/ M:I?+#)@@'ZT`1)'M8X`'/:ADRW:@"4Q!5X`'T%1>6&Z@''J*`%6,,P!`(]"* M>8ESG`R/6@"-H5Q]U?RI\2_-0`IB!))"G/J*A:!,_<7_`+Y%`$T:X4T-$&!R M!GUH`B$*A\X&?4]:D2,*#@`?2BX"M&`A(`!/4BHE@49^48/;M1<+#XTP3C`^ ME$L2D=!]*+V`;Y0*X(!`]:DB7!H`BED;/6FF1L#F@!\4C8/-->1MPYH`:TC9 MZU*DC;.M`#6D;UIGF-NZT`2^8VT3Q'8-J;Z:+ZU-^L7GFU$ZF41_WRF<[?>@ M"JWBW2DN((CJNGB6>0Q1(;R/,CCJJC/)]JEO?$5CI]_!9W5]:VUU,I>.">X2 M.211U*J3D@>M`'F_Q3^/%MH^B^-M.\(7VDZOXV\/Z&=;_LRYN1Y1CQ(0'93U M(B$=*/C M"^E:)9ZEI\D[6^E!F("POL:.7N'8\@>A%`'IWP3^*'Q+\0_:)_B+X<\->&-- M_LR"^@NM.U<2-O=0621&/R!<_>-=B_C;Q)ZE=Z?!?VDU]:`-<6T5PC2P@]"Z@Y45!+X MKTN.[AMFU.P%Q,YCCA^UQ[W8=55$ M4\'^%M1?P18?VO.5O'C-W9DG;M/\,F.W3(H`^@_@A^T7X>^,GPF\/>-X[BVT M6'5(#(]G?WL:O`X.&0DGG![UZ0?%&G)JL.F'4+,:A/'YT5J;E/-D3^\J9R1[ MT`,N_%^DVE]+83:K80WL2AWMY;N-)%4@D$J3D#`/Y4W3?%FEZK?-9V>J6-W= M+&)#!;W222!3_%M!SCWH`?!XITV75KG35U&S;4+9!+-:BY0RQ(?XF3.0*Y'X MK?$'6-*\%:A<>!H-%\1^*%0/9Z9>:G'#',HDV2-NS_#AOQ&*`+6B_%O0;_Q3 M+X3EU2S3Q1:6$-[>V"3K^X#@<9SZYX].:ZVQUFUO)-D%W;S.<_+',K'CKP*` M+"OAO\3([BUT_Q?J4EMIVL0S")=/O$B9HV9CW M8C8.V6YK\YOCJGB?X=^'/'GP3U'Q%+\1?"7AC6-,U&TU]I3*-,61P&@E<<*V M.JDD#MB@#W5?@K\'/BQ^UA?:+9-!XCT2'P+]L73M/UEWBEOEP-N5;[P&#M'? MG%8W[)WPOB\>^%M`\;:W\4K;PQJMIXM:WOH[FY)U*X5)/(2PD=FR(VB^7;C' M>@#C_%/A;PYIO[-?Q=\6Z>6?7M,^):16,XO&>2P1;A0%AYXR"$F@E\4?$K4[W3'T'Q'%JOEVVG6C(GFVXDW`1N!NW)U;-`'HD7PT^& MOP+^./QETN5K'1&T_P"'MJ^G_;]0.ZXNWBNED(+G,A;:HQZ8Q7'^"_"NF?#? M3OV,O$/AN[E_M[7;UX=1U5KHF2>%URUNPS@1J>`IZ8H`_3'P1\1/#/Q%@U&? MPWJ]IK=M8WTNGW+VK;DCF0X>,GN17Y_^'/!^K^`OVJ_''[/%G#<7'AGQ=KL' MC6.^'"6]H/WEQ#LZ%2Q$>?\`8H`\\^.GA>WN_P!KCXI^%M'\3P^%]1OWT]-' MMKZ9FLM1NPF[[#,'?"_P6_9A\<>#+Z4_$S7=?L[+6+NRO&F MN=3:<'[?#=`DDA3GAA\A`'%<'JOPX\*Z9\#/C+XMBO)-2\1^&_B,8M*\1+J+ MEX8QC[I4A>-< M2'V)/7WKXC/PWM_C;_P4`^-'A\^+KO1M$GT2T@U2UTIH\ZA$1AK=G/*XSGY> M:`,_Q%^RY\*[;]LKP[\-XM(V^&QX'GN/[#%^^);A3A"0&!#]_<\UYOH6DZ,O M['?Q*\9ZE=31?&CP_P")A;:9=W%ZZZI:2PS1QV=LB9W;3'P(\8?D\T`'?A3^S5\"/&GPIUAY/C++*T*2Z?.TUY>*=PFAEB!.Y%/`R.*`/1OV9_A!;? M$CP/\//&VH_$VPT3Q))J]TVH0M+C4M0O79@]E<%FRRX&`A&%KSSPQ\)O"%_^ MP]\3_B!<07+^+=#UN\BL-1_M.3?!$+I?D5=WW<#<1W))H`]3UCX:^"OB5^T! M\2-/EU&WTO4/$/P[TJ\TB^CO3#)-?-$`LD>#EF)`!`KKOV)/&EAK.M^$O$_C M6[7PWJNCVS?#VSLKIVC&H:LK[I'"Y^>0QJ5R>A;UH`_0J5!FFE!@4`/B08-- M=!N%`#609J5$&R@!K(*9L&Z@"78-HILB#`H`8J#-2[!0`R5!NI%08H`Y_P`< M_#7PQ\2]*_LWQ/H=CKED-VV*]AWA"1@E3P5.#U!!KEM'_9P^&WAWP5JOA"P\ M&Z3!X>U0YOK$0EDNCZREF+.?Q MMS&Z.R[2<[LG(XYS5B7]FKX9W'C*[\5OX*T8Z_=HR3WHML-)N4JQ(!V[B"1N MV[N>M`$$?[-7PR@M7M4\$Z.+65XVDA$+;)&3A68;L%A_>/-?E?\`&VW^$'PJ M^,/Q9\%>+?!]_J7BW4[]%\+W.@SM:V&G*X`B,B^;NWJQRS8#?`?A_P%IYL/#VCV6C6; MR&9H;*$1JSGJY]6/J:GE\$Z'+XOB\4-IELWB"*T-BFHE/WRP;BWEAO[NXDX] MZ`//O%O[*OPI\;S7!M'U*>[N6NYIIXG+R2GJY8.#G^7;%6M%_9E^&&B3 MZ9-8^"='M9],>.2TGBA820LC!U(;=G.X`\DYQSF@";0_V;?AKX;\:7_BO3/! MVE6.O7IE::\@B96+2?ZQ@N[:K-W95!/K5(_LM_"M1*H\#:,(I8Q')"(6$;@? MWDW;2?%_!U\;[1M"L=/OFM(K%KJ&+]ZT$9)2,N26*C)P,US MFA_LV?#;PUJFG:GIGA'3;+4=.NI;VWNX5<2K-)NWN7WY8GX6Y.ILC&X\Q1@$/NXX[#CVJIK'[.WPY\0_$*W\<:AX/T MJZ\4V[QR)JGW'(!"LR]F921ZT`>4_M*_"KX:_"+X0_$WXA6O@^RMM; M?1KQ);ZQBQ.TD^5,GS-MW;W!+8W<=>U<3_P3A\+?#3QG\%/"GCO1_`]CI?BJ MRMO[)N]4D@#322I]]T;<0H;J2`#0![[:_LN_"RV\4:IXAA\#Z-%K&I1R)=7: M0,'D\P8=OO85C_?4!O0BK;_LV_#6.V>W7P;I(MI&5I+<1,(G*IL!9-VTG;QR M*`/-OC_X-^&7P!^'-S\5!\/]+OM7\#:?MT=TA/F6YW8C526X4,V>