8-K/A

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K/A

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 28, 2015

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))

Explanatory Note

This Current Report on Form 8-K/A amends the Current Report on Form 8-K filed by Summit Financial Group, Inc. (“Summit”) on January 28, 2015 to report a correction to the book value per common share and the tangible book value per common share, originally reported in the press release titled “Summit Financial Group Reports Fourth Quarter 2014 Results” issued earlier today. As of December 31, 2014, corrected book value per common share is $12.60 versus the $13.57 book value per common share reported earlier, and corrected tangible book value per share is $11.86 versus the $12.78 tangible book value per common share reported earlier.

Section 2 - Financial Information

Item 2.02. Results of Operations and Financial Condition.

On January 28, 2015, Summit Financial Group, Inc. (“Summit”) issued a News Release announcing a correction to the book value per common share and the tangible book value per common share at December 31, 2014. A full release reflecting the corrected values and the release describing the corrections are furnished as Exhibits 99 and 99.1, respectively, and are incorporated herein by reference.

Section 9 – Financial Statements and Exhibits

Item 9.01 Financial Statements and Exhibits

(c) Exhibits

99    News Release issued on January 28, 2015, reflecting corrections

99.1    News Release issued on January 28, 2015

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 28, 2015	By:	/s/ Julie R. Cook
		Julie R. Cook
		Vice President and
		Chief Accounting Officer

EX-99

Exhibit 99

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

Telephone:(304) 530-0552

Email:rtissue@summitfgi.com

SUMMIT FINANCIAL GROUP REPORTS FOURTH QUARTER 2014 RESULTS

Q4 2014 Diluted EPS $0.32 compared to $0.29 for Q4 2013

MOOREFIELD, WV - January 28, 2015 (GLOBE NEWSWIRE) - Summit Financial Group, Inc. (“Company” or “Summit”) (NASDAQ: SMMF) today reported fourth quarter 2014 net income applicable to common shares of $3.01 million, or $0.32 per diluted share, compared to $2.59 million, or $0.29 per diluted share, for the fourth quarter of 2013, representing an increase of 16.0 percent, or 10.3 percent per diluted share. Q4 2014 earnings compared to Q4 2013 were positively impacted by a $948,000 increase in net interest income and a $1.0 million decline in provision for loan losses, but were negatively impacted by a $686,000 increase in noninterest expense, which included a fraud loss of $461,000.

Excluding from fourth quarter 2014 (on a pre-tax basis) realized securities gains of $149,000, losses on sales of foreclosed properties of $628,000, write-downs of foreclosed properties of $300,000 and the $461,000 fraud loss, Q4 2014 core earnings approximated $3.79 million, or $0.40 per diluted share. Excluding from Q4 2013 (on a pre-tax basis) realized securities gains of $124,000, gains on sales of foreclosed properties of $28,000, and write-downs of foreclosed properties of $644,000, Q4 2013 core earnings approximated $2.90 million, or $0.32 per diluted share.

For the year ended December 31, 2014, Summit recorded net income applicable to common shares of $10.59 million, or $1.17 per diluted share, compared with $7.29 million, or $0.84 per diluted share, for 2013, representing an increase of 45.1%, or 39.3% per diluted share.

Excluding from the full-year 2014 nonrecurring items (on a pre-tax basis) comprised of realized securities gains of $213,000, losses on sales of foreclosed properties of $827,000, OTTI charges of $1,000 and write-downs of foreclosed properties of $3.77 million, and from the 2013 full year realized securities gains of $240,000, losses on sale of foreclosed properties of $518,000, OTTI charges of $118,000 and write-downs of foreclosed properties of $3.72 million, core earnings for full-year 2014 were approximately $13.64 million, or $1.50 per diluted share, compared to $9.89 million, or $1.12 per diluted share, for full-year 2013.

Highlights for Q4 2014 include:

• Nonperforming assets declined for the twelfth consecutive quarter. Compared to the linked quarter, nonperforming assets as a percentage of total assets declined from 4.10 percent to 3.48 percent, reaching its lowest level since Q2 2008; foreclosed properties are at the lowest level since Q3 2009.

• Net interest margin declined 5 basis points compared to the linked quarter, but has increased 18 basis points since Q4 2013.

• Achieved loan growth of $26.6 million, or 2.7 percent (non-annualized) during Q4 2014, and $81.3 million, or 8.6 percent during 2014.

• Recorded charges of $300,000 to write-down foreclosed properties compared to $1.58 million in Q3 2014 and $644,000 in Q4 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, “The year just concluded marked a milestone of Summit’s recovery from the effects of the economic downturn of the last decade. Our earnings improvements, growing loan portfolio, increasing revenues, improved net interest earnings, strengthened capital, reductions in our portfolio of problem assets and the recent lifting of regulatory memorandum, all serve as evidence of achievement of this goal. Further, we are very pleased to end 2014 with another quarter of solid performance, which gives us optimism as we look forward to 2015 and beyond.”

Results from Operations

Total revenue for fourth quarter 2014, consisting of net interest income and noninterest income, grew 6.8 percent to $13.8 million compared to $12.9 million for the fourth quarter 2013. For the year-to-date period ended December 31, 2014, total revenue was $53.6 million compared to $50.0 million for 2013, representing a 7.2 percent increase.

Total core revenue (excluding nonrecurring items, enumerated above) was $13.6 million for fourth quarter 2014 compared to $12.8 million for the same prior-year quarter, an increase of 6.6 percent. For full-year 2014, total core revenue (excluding nonrecurring items) was $53.4 million compared to $49.9 million for full-year 2013, a 7.0 percent improvement.

For the fourth quarter of 2014, net interest income was $11.0 million, an increase of 9.5 percent from the $10.0 million reported in the prior-year fourth quarter and decreased $126,000 compared to the linked quarter. The net interest margin for fourth quarter 2014 was 3.42 percent compared to 3.24 percent for the year-ago quarter, and 3.47 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 fourth quarter 2014 was $2.82 million compared to $2.90 million for the comparable period of 2013. Excluding realized securities gains/losses and OTTI of securities, noninterest income was $2.67 million for fourth quarter 2014, compared to $2.77 million reported for fourth quarter 2013.

Summit recognized no provision for loan losses in fourth quarter 2014, compared to $250,000 for the linked quarter and $1.0 million for the year-ago quarter.

Core noninterest expense continues to be well-controlled. Total noninterest expense increased 8.1% to $9.11 million compared to $8.42 million for the prior-year fourth quarter. Excluding from noninterest expense (on a pre-tax basis) losses on sales of foreclosed properties of $628,000 in Q4 2014 and gains of $28,000 in Q4 2013, write-downs of foreclosed properties of $300,000 in Q4 2014 and $644,000 in Q4 2013, and a fraud loss in Q4 2014 of $461,000, noninterest expense would have approximated $7.72 million for Q4 2014 compared to $7.81 million for the comparable period of 2013. Noninterest expense for the full-year 2014 increased 1.6% compared to 2013.

Balance Sheet

At December 31, 2014, total assets were $1.44 billion, an increase of $57.3 million, or 4.1 percent since December 31, 2013. Total loans, net of unearned fees and allowance for loan losses, were $1.02 billion at December 31, 2014, up $82.8 million, or 8.8 percent, from the $937.1 million reported at year-end 2013.

At December 31, 2014, deposits were $1.06 billion, an increase of $57.5 million, or 5.7 percent, since year end 2013. During 2014, checking and savings grew by $40.0 million and $60.1 million, respectively, or 14.3 percent and 31.1 percent, respectively. Long-term borrowings and subordinated debentures declined by 43.0 percent since year end 2013, as the Company paid down $86.0 million in maturing borrowings, which was funded by growth in checking and savings deposits and short-term borrowings.

Asset Quality

As of December 31, 2014, nonperforming assets (“NPAs”), consisting of nonperforming loans, foreclosed properties, and repossessed assets, were $50.2 million, or 3.48 percent of assets. This compares to $58.5 million, or 4.10 percent of assets at the linked quarter, and $72.3 million, or 5.22 percent of assets, at fourth quarter 2013.

Fourth quarter 2014 net loan recoveries were $126,000, or 0.05 percent of average loans annualized. The allowance for loan losses stood at $11.2 million, or 1.08 percent of total loans at December 31, 2014, compared to 1.33 percent at year-end 2013.

Capital Adequacy

Shareholders’ equity was $131.6 million as of December 31, 2014 compared to $111.1 million December 31, 2013. Tangible book value per common share increased to $11.86 at December 31, 2014 compared to $10.72 at December 31, 2013.

Summit's depository institution, Summit Community Bank, Inc. (the “Bank”), is well in excess of regulatory requirements for a "well capitalized" institution at December 31, 2014. The Bank’s total risk-based capital ratio was 15.3 percent at December 31, 2014 compared to 15.7 percent at December 31, 2013, while its Tier 1 leverage capital ratio improved to 10.6 percent from the 10.4 percent reported at December 31, 2013.

About the Company

Summit Financial Group, Inc. is a $1.44 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 -- Q4 2014 vs Q4 2013
	For the Quarter Ended					Percent
Dollars in thousands	12/31/2014		12/31/2013			Change
Condensed Statements of Income
Interest income
Loans, including fees	$	12,666	$	12,507		1.3	%
Securities	1,784		1,850			-3.6	%
Other	2		2			0.0	%
Total interest income	14,452		14,359			0.6	%
Interest expense
Deposits	2,130		2,317			-8.1	%
Borrowings	1,371		2,039			-32.8	%
Total interest expense	3,501		4,356			-19.6	%
Net interest income	10,951		10,003			9.5	%
Provision for loan losses	—		1,000			-100.0	%
Net interest income after provision for loan losses	10,951		9,003			21.6	%
Noninterest income
Insurance commissions	1,023		1,056			-3.1	%
Service fees related to deposit accounts	1,113		1,124			-1.0	%
Realized securities gains	149		124			20.2	%
Other-than-temporary impairment of securities	—		—			n/a
Other income	537		592			-9.3	%
Total noninterest income	2,822		2,896			-2.6	%
Noninterest expense
Salaries and employee benefits	4,133		4,024			2.7	%
Net occupancy expense	495		466			6.2	%
Equipment expense	487		580			-16.0	%
Professional fees	452		295			53.2	%
FDIC premiums	315		502			-37.3	%
Foreclosed properties expense	239		209			14.4	%
Loss (gain) on sales of foreclosed properties	628		(28		)	-2342.9	%
Write-downs of foreclosed properties	300		644			-53.4	%
Other expenses	2,061		1,732			19.0	%
Total noninterest expense	9,110		8,424			8.1	%
Income before income taxes	4,663		3,475			34.2	%
Income taxes	1,464		687			113.1	%
Net income	3,199		2,788			14.7	%
Preferred stock dividends	191		194			-1.5	%
Net income applicable to common shares	$	3,008	$	2,594		16.0	%

SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF)
Quarterly Performance Summary -- Q4 2014 vs Q4 2013
	For the Quarter Ended						Percent
	12/31/2014			12/31/2013			Change
Per Share Data
Earnings per common share
Basic	$	0.39		$	0.35		11.4	%
Diluted	$	0.32		$	0.29		10.3	%
Average shares outstanding
Basic	7,796,508			7,450,379			4.6	%
Diluted	9,963,214			9,624,312			3.5	%
Performance Ratios
Return on average equity (A)	10.10		%	10.15		%	-0.5	%
Return on average assets	0.89		%	0.80		%	11.3	%
Net interest margin	3.42		%	3.24		%	5.6	%
Efficiency ratio (B)	53.07		%	57.31		%	-7.4	%
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)
Annual Performance Summary -- 2014 vs 2013
	For the Years Ended						Percent
Dollars in thousands	12/31/2014			12/31/2013			Change
Condensed Statements of Income
Interest income
Loans, including fees	$	50,430		$	50,741		-0.6	%
Securities	7,188			6,534			10.0	%
Other	8			5			60.0	%
Total interest income	57,626			57,280			0.6	%
Interest expense
Deposits	8,995			10,392			-13.4	%
Borrowings	6,246			8,085			-22.7	%
Total interest expense	15,241			18,477			-17.5	%
Net interest income	42,385			38,803			9.2	%
Provision for loan losses	2,250			4,500			-50.0	%
Net interest income after provision for loan losses	40,135			34,303			17.0	%
Noninterest income
Insurance commissions	4,400			4,429			-0.7	%
Service fees related to deposit accounts	4,405			4,325			1.8	%
Realized securities gains	213			240			-11.3	%
Other-than-temporary impairment of securities	(1		)	(118		)	-99.2	%
Other income	2,206			2,333			-5.4	%
Total noninterest income	11,223			11,209			0.1	%
Noninterest expense
Salaries and employee benefits	16,185			16,178			0.0	%
Net occupancy expense	2,023			1,853			9.2	%
Equipment expense	2,086			2,303			-9.4	%
Professional fees	1,429			1,181			21.0	%
FDIC premiums	1,792			2,060			-13.0	%
Foreclosed properties expense	1,020			1,045			-2.4	%
Loss on sales of foreclosed properties	827			518			59.7	%
Write-downs of foreclosed properties	3,771			3,722			1.3	%
Other expenses	6,191			5,896			5.0	%
Total noninterest expense	35,324			34,756			1.6	%
Income before income taxes	16,034			10,756			49.1	%
Income taxes	4,678			2,688			74.0	%
Net income	11,356			8,068			40.8	%
Preferred stock dividends	771			775			-0.5	%
Net income applicable to common shares	$	10,585		$	7,293		45.1	%

SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF)
Annual Performance Summary -- 2014 vs 2013
	For the Years Ended						Percent
	12/31/2014			12/31/2013			Change
Per Share Data
Earnings per common share
Basic	$	1.40		$	0.98		42.9	%
Diluted	$	1.17		$	0.84		39.3	%
Average shares outstanding
Basic	7,539,444			7,442,689			1.3	%
Diluted	9,711,561			9,621,504			0.9	%
Performance Ratios
Return on average equity (A)	9.54		%	7.38		%	29.3	%
Return on average assets	0.80		%	0.58		%	37.9	%
Net interest margin	3.39		%	3.22		%	5.3	%
Efficiency ratio (B)	52.78		%	56.48		%	-6.6	%
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	12/31/2014		9/30/2014		6/30/2014			3/31/2014			12/31/2013
Condensed Statements of Income
Interest income
Loans, including fees	$	12,666	$	13,033	$	12,515		$	12,216		$	12,507
Securities	1,784		1,724		1,827			1,852			1,850
Other	2		3		2			2			2
Total interest income	14,452		14,760		14,344			14,070			14,359
Interest expense
Deposits	2,130		2,288		2,335			2,241			2,317
Borrowings	1,371		1,395		1,689			1,791			2,039
Total interest expense	3,501		3,683		4,024			4,032			4,356
Net interest income	10,951		11,077		10,320			10,038			10,003
Provision for loan losses	—		250		1,000			1,000			1,000
Net interest income after provision for loan losses	10,951		10,827		9,320			9,038			9,003
Noninterest income
Insurance commissions	1,023		1,105		1,091			1,181			1,056
Service fees related to deposit accounts	1,113		1,177		1,101			1,043			1,124
Realized securities gains (losses)	149		128		(43		)	(22		)	124
Other-than-temporary impairment of securities	—		—		(1		)	—			—
Other income	537		503		557			581			592
Total noninterest income	2,822		2,913		2,705			2,783			2,896
Noninterest expense
Salaries and employee benefits	4,133		4,026		4,045			3,980			4,024
Net occupancy expense	495		482		505			541			466
Equipment expense	487		520		513			566			580
Professional fees	452		380		282			316			295
FDIC premiums	315		480		495			502			502
Foreclosed properties expense	239		298		229			254			209
Loss (gain) on sale of foreclosed properties	628		70		54			75			(28		)
Write-downs of foreclosed properties	300		1,580		962			928			644
Other expenses	2,061		1,350		1,445			1,336			1,732
Total noninterest expense	9,110		9,186		8,530			8,498			8,424
Income before income taxes	4,663		4,554		3,495			3,323			3,475
Income taxes	1,464		1,218		1,063			934			687
Net income	3,199		3,336		2,432			2,389			2,788
Preferred stock dividends	191		193		193			194			194
Net income applicable to common shares	$	3,008	$	3,143	$	2,239		$	2,195		$	2,594

SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF)
Five Quarter Performance Summary
	For the Quarter Ended
	12/31/2014			9/30/2014			6/30/2014			3/31/2014			12/31/2013
Per Share Data
Earnings per common share
Basic	$	0.39		$	0.42		$	0.30		$	0.29		$	0.35
Diluted	$	0.32		$	0.35		$	0.25		$	0.25		$	0.29
Average shares outstanding
Basic	7,796,508			7,457,222			7,457,222			7,453,370			7,450,379
Diluted	9,963,214			9,630,293			9,630,699			9,628,927			9,624,312
Performance Ratios
Return on average equity (A)	10.10		%	11.13		%	8.37		%	8.46		%	10.15		%
Return on average assets	0.89		%	0.93		%	0.69		%	0.69		%	0.80		%
Net interest margin	3.42		%	3.47		%	3.32		%	3.33		%	3.24		%
Efficiency ratio - (B)	53.07		%	51.19		%	52.86		%	54.13		%	57.31		%
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	12/31/2014			9/30/2014			6/30/2014			3/31/2014			12/31/2013
Assets
Cash and due from banks	$	3,728		$	3,933		$	3,749		$	3,827		$	3,442
Interest bearing deposits other banks	8,783			9,300			9,970			13,424			8,340
Securities	282,834			282,401			287,883			281,865			288,780
Loans, net	1,019,842			993,347			992,816			962,714			937,070
Property held for sale	37,529			47,252			48,783			52,241			53,392
Premises and equipment, net	20,060			20,132			20,301			20,457			20,623
Intangible assets	7,698			7,748			7,798			7,861			7,949
Cash surrender value of life insurance policies	36,700			36,417			36,151			35,881			35,611
Other assets	26,394			28,139			28,507			27,847			31,020
Total assets	$	1,443,568		$	1,428,669		$	1,435,958		$	1,406,117		$	1,386,227
Liabilities and Shareholders' Equity
Deposits	$	1,061,314		$	1,054,454		$	1,057,795		$	1,052,630		$	1,003,812
Short-term borrowings	123,633			127,432			91,729			68,974			62,769
Long-term borrowings and      subordinated debentures	113,879			114,855			158,331			159,881			199,905
Other liabilities	13,098			10,566			10,638			10,105			8,669
Shareholders' equity	131,644			121,362			117,465			114,527			111,072
Total liabilities and shareholders' equity	$	1,443,568		$	1,428,669		$	1,435,958		$	1,406,117		$	1,386,227
Book value per common share (A)	$	12.60		$	12.62		$	12.21		$	11.91		$	11.55
Tangible book value per common share (A)	$	11.86		$	11.81		$	11.40		$	11.09		$	10.72
Tangible equity / Tangible assets	8.6		%	8.0		%	7.7		%	7.6		%	7.5		%
NOTE (A) - Assumes conversion of convertible preferred stock

SUMMIT FINANCIAL GROUP INC. (NASDAQ: SMMF)
Regulatory Capital Ratios
	12/31/2014		9/30/2014		6/30/2014		3/31/2014		12/31/2013
Summit Financial Group, Inc.
Total Risk Based Capital	14.9	%	14.3	%	14.2	%	14.2	%	14.5	%
Tier 1 Risk-based Capital	13.3	%	12.5	%	12.4	%	12.4	%	12.4	%
Tier 1 Leverage Ratio	9.9	%	9.2	%	9.0	%	9.0	%	8.9	%
Summit Community Bank, Inc.
Total Risk Based Capital	15.3	%	15.5	%	15.6	%	15.6	%	15.7	%
Tier 1 Risk-based Capital	14.2	%	14.4	%	14.5	%	14.5	%	14.5	%
Tier 1 Leverage Ratio	10.6	%	10.5	%	10.6	%	10.6	%	10.4	%

SUMMIT FINANCIAL GROUP INC. (NASDAQ: SMMF)
Loan Composition
Dollars in thousands	12/31/2014		9/30/2014		6/30/2014		3/31/2014		12/31/2013
Commercial	$	88,590	$	83,762	$	90,096	$	93,517	$	88,352
Commercial real estate
Owner occupied	157,783		156,765		154,260		150,025		149,618
Non-owner occupied	317,136		314,577		314,439		297,197		280,790
Construction and development
Land and development	67,881		61,088		64,246		67,342		71,453
Construction	28,591		27,239		20,902		18,327		15,155
Residential real estate
Non-jumbo	220,071		218,125		219,569		215,665		212,946
Jumbo	52,879		51,917		52,487		51,406		53,406
Home equity	67,115		64,256		61,248		56,161		54,844
Consumer	19,456		19,906		19,777		19,106		19,889
Other	11,507		6,753		6,798		5,037		3,276
Total loans, net of unearned fees	1,031,009		1,004,388		1,003,822		973,783		949,729
Less allowance for loan losses	11,167		11,041		11,006		11,069		12,659
Loans, net	$	1,019,842	$	993,347	$	992,816	$	962,714	$	937,070

SUMMIT FINANCIAL GROUP INC. (NASDAQ: SMMF)
Deposit Composition
Dollars in thousands	12/31/2014		9/30/2014		6/30/2014		3/31/2014		12/31/2013
Non interest bearing checking	$	115,427	$	104,442	$	106,134	$	99,445	$	92,837
Interest bearing checking	204,030		195,183		187,855		195,898		186,578
Savings	253,578		255,880		243,323		228,854		193,446
Time deposits	488,279		498,949		520,483		528,433		530,951
Total deposits	$	1,061,314	$	1,054,454	$	1,057,795	$	1,052,630	$	1,003,812

SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF)
Asset Quality Information
	For the Quarter Ended
Dollars in thousands	12/31/2014			9/30/2014			6/30/2014			3/31/2014			12/31/2013
Gross loan charge-offs	$	362		$	297		$	1,312		$	2,862		$	1,669
Gross loan recoveries	(488		)	(82		)	(249		)	(272		)	(289		)
Net loan charge-offs	$	(126	)	$	215		$	1,063		$	2,590		$	1,380
Net loan charge-offs to average loans (annualized)	-0.05		%	0.09		%	0.43		%	1.08		%	0.58		%
Allowance for loan losses	$	11,167		$	11,041		$	11,006		$	11,069		$	12,659
Allowance for loan losses as a percentage     of period end loans	1.08		%	1.10		%	1.10		%	1.14		%	1.33		%
Nonperforming assets:
Nonperforming loans
Commercial	$	392		$	309		$	415		$	866		$	1,224
Commercial real estate	1,844			936			1,537			2,834			2,318
Commercial construction and development	—			—			3,601			3,653			3,782
Residential construction and development	4,619			4,592			5,248			6,599			9,048
Residential real estate	5,556			5,257			3,289			2,890			2,446
Consumer	83			146			129			73			128
Total nonperforming loans	12,494			11,240			14,219			16,915			18,946
Foreclosed properties
Commercial	110			110			110			—			—
Commercial real estate	5,204			5,815			5,762			8,523			9,903
Commercial construction and development	10,179			10,178			10,363			11,097			11,125
Residential construction and development	19,267			20,431			20,557			20,640			20,485
Residential real estate	2,769			10,718			11,991			11,981			11,879
Total foreclosed properties	37,529			47,252			48,783			52,241			53,392
Other repossessed assets	221			34			—			28			8
Total nonperforming assets	$	50,244		$	58,526		$	63,002		$	69,184		$	72,346
Nonperforming loans to period end loans	1.21		%	1.12		%	1.42		%	1.74		%	1.99		%
Nonperforming assets to period end assets	3.48		%	4.10		%	4.39		%	4.92		%	5.22		%

Loans Past Due 30-89 Days
	For the Quarter Ended
In thousands	12/31/2014		9/30/2014		6/30/2014		3/31/2014		12/31/2013
Commercial	$	382	$	253	$	376	$	52	$	74
Commercial real estate	266		1,094		1,032		1,310		1,809
Construction and development	2,278		324		156		754		1,628
Residential real estate	7,413		5,087		5,775		3,847		4,332
Consumer	269		427		585		219		292
Other	14		18		—		—		—
Total	$	10,622	$	7,203	$	7,924	$	6,182	$	8,135

SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF)
Average Balance Sheet, Interest Earnings & Expenses and Average Rates
Q4 2014 vs Q4 2013
	Q4 2014							Q4 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	$	1,006,641		$	12,562	4.95	%	$	950,162		$	12,450	5.20	%
Tax-exempt	9,488			158		6.61	%	5,084			89		6.95	%
Securities
Taxable	207,577			1,127		2.15	%	226,710			1,273		2.23	%
Tax-exempt	83,729			995		4.71	%	74,777			871		4.62	%
Interest bearing deposits other banks    and Federal funds sold	8,102			2		0.10	%	8,156			1		0.05	%
Total interest earning assets	1,315,537			14,844		4.48	%	1,264,889			14,684		4.61	%
Noninterest earning assets
Cash & due from banks	3,564							4,279
Premises & equipment	20,149							20,689
Other assets	107,467							109,534
Allowance for loan losses	(11,239		)					(13,449		)
Total assets	$	1,435,568						$	1,385,942
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Interest bearing liabilities
Interest bearing
demand deposits	$	199,932		$	60	0.12	%	$	188,839		$	63	0.13	%
Savings deposits	254,986			443		0.69	%	193,889			277		0.57	%
Time deposits	489,884			1,627		1.32	%	528,370			1,977		1.48	%
Short-term borrowings	124,001			97		0.31	%	59,378			45		0.30	%
Long-term borrowings and      subordinated debentures	114,533			1,274		4.41	%	199,917			1,993		3.96	%
Total interest bearing liabilities	1,183,336			3,501		1.17	%	1,170,393			4,355		1.48	%
Noninterest bearing liabilities
Demand deposits	113,926							97,371
Other liabilities	11,633							8,286
Total liabilities	1,308,895							1,276,050
Shareholders' equity - preferred	9,249							9,295
Shareholders' equity - common	117,424							100,597
Total liabilities and   shareholders' equity	$	1,435,568						$	1,385,942
NET INTEREST EARNINGS				$	11,343						$	10,329
NET INTEREST MARGIN						3.42	%						3.24	%

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	$	984,723		$	50,078	5.09	%	$	949,616		$	50,505	5.32	%
Tax-exempt	7,823			533		6.81	%	5,440			388		7.13	%
Securities
Taxable	211,700			4,692		2.22	%	208,588			4,131		1.98	%
Tax-exempt	81,549			3,780		4.64	%	75,707			3,647		4.82	%
Interest bearing deposits other banks
and Federal funds sold	9,325			8		0.09	%	7,821			5		0.06	%
Total interest earning assets	1,295,120			59,091		4.56	%	1,247,172			58,676		4.70	%
Noninterest earning assets
Cash & due from banks	3,756							4,381
Premises & equipment	20,346							20,926
Other assets	112,504							125,629
Allowance for loan losses	(11,724		)					(15,152		)
Total assets	$	1,420,002						$	1,382,956
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Interest bearing liabilities
Interest bearing
demand deposits	$	192,190		$	222	0.12	%	$	181,413		$	255	0.14	%
Savings deposits	238,340			1,580		0.66	%	195,398			1,152		0.59	%
Time deposits	513,110			7,193		1.40	%	556,644			8,985		1.61	%
Short-term borrowings	100,786			306		0.30	%	34,098			95		0.28	%
Long-term borrowings and
subordinated debentures	142,213			5,939		4.18	%	202,237			7,991		3.95	%
	1,186,639			15,240		1.28	%	1,169,790			18,478		1.58	%
Noninterest bearing liabilities
Demand deposits	104,262							94,943
Other liabilities	10,119							8,951
Total liabilities	1,301,020							1,273,684
Shareholders' equity - preferred	9,276							9,313
Shareholders' equity - common	109,706							99,959
Total liabilities and  shareholders' equity	$	1,420,002						$	1,382,956
NET INTEREST EARNINGS				$	43,851						$	40,198
NET INTEREST MARGIN						3.39	%						3.22	%

SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF)
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures
	For the Quarter Ended									For the Years Ended
Dollars in thousands	12/31/2014			9/30/2014			12/31/2013			12/31/2014			12/31/2013
Core earnings applicable to common shares	$	3,789		$	4,101		$	2,904		$	13,639		$	9,887
Realized securities gains (losses)	149			128			124			213			240
Applicable income tax effect	(55		)	(47		)	(46		)	(79		)	(89		)
Gain (loss) on sale of foreclosed properties	(628		)	(70		)	28			(827		)	(518		)
Applicable income tax effect	232			26			(10		)	306			192
Other-than-temporary impairment of securities	—			—			—			(1		)	(118		)
Applicable income tax effect	—			—			—			—			44
Fraud loss	(461		)	—			—			(461		)	—
Applicable income tax effect	171			—			—			171			—
Write-downs foreclosed properties	(300		)	(1,580		)	(644		)	(3,771		)	(3,722		)
Applicable income tax effect	111			585			238			1,395			1,377
	(781		)	(958		)	(310		)	(3,054		)	(2,594		)
GAAP net income applicable to common shares	$	3,008		$	3,143		$	2,594		$	10,585		$	7,293
Core diluted earnings per common share	$	0.40		$	0.45		$	0.32		$	1.50		$	1.12
Realized securities gains (losses)	0.01			0.01			0.01			0.02			0.02
Applicable income tax effect	—			—			—			(0.01		)	(0.01		)
Gain (loss) on sale of foreclosed properties	(0.06		)	(0.01		)	—			(0.09		)	(0.05		)
Applicable income tax effect	0.02			—			—			0.03			0.02
Other-than-temporary impairment of securities	—			—			—			—			(0.01		)
Applicable income tax effect	—			—			—			—			—
Fraud loss	(0.05		)	(0.01		)	—			(0.05		)	—
Applicable income tax effect	0.02			—			—			0.02			—
Write-downs of foreclosed properties	(0.03		)	(0.16		)	(0.07		)	(0.39		)	(0.39		)
Applicable income tax effect	0.01			0.06			0.03			0.14			0.14
	(0.08		)	(0.11		)	(0.03		)	(0.33		)	(0.28		)
GAAP diluted earnings per common share	$	0.32		$	0.34		$	0.29		$	1.17		$	0.84

SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF)
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures
	For the Quarter Ended							For the Years Ended
Dollars in thousands	12/31/2014		9/30/2014		12/31/2013			12/31/2014			12/31/2013
Total core revenue	$	13,624	$	13,862	$	12,775		$	53,396		$	49,890
Realized securities gains/(losses)	149		128		124			213			240
Other-than-temporary impairment of securities	—		—		—			(1		)	(118		)
	149		128		124			212			122
GAAP total revenue	$	13,773	$	13,990	$	12,899		$	53,608		$	50,012
Total core noninterest income	$	2,673	$	2,785	$	2,772		$	11,011		$	11,087
Realized securities gains/(losses)	149		128		124			213			240
Other-than-temporary impairment of securities	—		—		—			(1		)	(118		)
	149		128		124			212			122
GAAP total noninterest income	$	2,822	$	2,913	$	2,896		$	11,223		$	11,209
Total core noninterest expense	$	7,721	$	7,535	$	7,809		$	30,726		$	30,516
Fraud loss	461		—		—			461			—
(Gains)/losses on sales of foreclosed properties	628		70		(28		)	827			518
Write-downs of foreclosed properties	300		1,580		644			3,771			3,722
	1,389		1,650		616			5,059			4,240
GAAP total noninterest expense	$	9,110	$	9,185	$	8,425		$	35,785		$	34,756

EX-99.1

Exhibit 99

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

Telephone:(304) 530-0552

Email:rtissue@summitfgi.com

SUMMIT FINANCIAL GROUP REPORTS CORRECTED BOOK VALUE PER SHARE AND TANGIBLE BOOK VALUE PER SHARE AT DECEMBER 31, 2014

MOOREFIELD, WV - January 28, 2015 (GLOBE NEWSWIRE) -Summit Financial Group, Inc. (“Company” or “Summit”) (Nasdaq SMMF) is reporting a correction to the book value per common share and the tangible book value per common share, originally reported on page 11 of the release titled “Summit Financial Group Reports Fourth Quarter 2014 Results” issued earlier today. As of December 31, 2014, corrected book value per common share is $12.60 versus the $13.57 book value per common share reported earlier, and corrected tangible book value per share is $11.86 versus the $12.78 tangible book value per common share reported earlier.

About the Company

Summit Financial Group, Inc. is a $1.44 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.