EXHIBIT 99.1

FOR RELEASE 6:00 AM ET, July 28, 2022

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

Telephone:    (304) 530-0552

Email:        rtissue@summitfgi.com

SUMMIT FINANCIAL GROUP REPORTS SECOND QUARTER 2022 EPS OF $0.92 ON REVENUE AND LOAN GROWTH

MOOREFIELD, WV – July 28, 2022 (GLOBE NEWSWIRE) – Summit Financial Group, Inc. (“Company” or “Summit”) (NASDAQ: SMMF) today reported financial results for the second quarter of 2022, including continued strong earnings on growth in total revenue and loans.

The Company, which serves commercial and individual clients across West Virginia, the Washington D.C. metropolitan area, Virginia and Kentucky through Summit Community Bank, Inc., reported net income applicable to common shares of $11.8 million, or $0.92 per diluted share, for the second quarter of 2022, as compared to $11.5 million, or $0.90 per diluted share, for the first quarter of 2022 and $10.4 million, or $0.80 per diluted share, for the second quarter of 2021.

“We are pleased to report another quarter of solid operating performance with improvements in both net interest margin and our efficiency ratio,” said H. Charles Maddy, III, President and Chief Executive Officer. “The continued growth in commercial and total loans, along with sustained strength in asset quality metrics, highlight our ongoing focus on meeting the credit needs of our customers while employing sound underwriting practices. Our solid financial performance during the first half of the year and projected loan growth give us confidence of continued strong operating results for the remainder of the year.”

Highlights for Q2 2022

•Total loans of $2.80 billion, excluding mortgage warehouse lines of credit and Paycheck Protection Program (“PPP”) lending, increased 4.6 percent, or 18.5 percent annualized, during the quarter and 22.7 percent since June 30, 2021.

•Net interest income increased 4.8 percent compared to the linked quarter, and increased 15.5 percent from the year-ago period, primarily due to loan growth.

•Net interest margin (“NIM”) increased 5 basis points to 3.66 percent from the linked quarter and 11 basis points from the year-ago quarter, as increased yields on interest earning assets were partially offset by increased cost of deposits and other funding.

•Total noninterest expense increased to $17.6 million in the quarter, up 2.4 percent from the linked quarter and up 3.4 percent from the year-ago quarter, as salary and benefits increases were largely offset by disciplined management of other operating costs.

•Annualized non-interest expense was unchanged from the linked quarter at 1.91 percent of average assets, and down 18 basis points from the year-ago period.

•Achieved an improved efficiency ratio of 47.45 percent compared to 49.44 percent in Q1 2022 and 48.82 percent in the year-ago quarter.

•Incurred $2.00 million provision for credit losses in the quarter increasing period-end allowance for loan credit losses to $35.1 million, or 1.18 percent of total loans and 320.6 percent of nonperforming loans.

•Foreclosed property held for sale declined by 22.9 percent during the quarter and 59.6 percent from the year-ago quarter to $5.32 million or 0.14 percent of assets at period end.

•Nonperforming assets (“NPAs”) improved to 0.43 percent of total assets at period end, excluding restructured assets, down 8 basis points during the quarter and 67 basis points from June 30, 2021.

•Tangible book value per common share (“TBVPS”) increased $0.28 to $20.07 during the quarter, despite unrealized net losses on debt securities available for sale (“AFS”) of $0.91 per common share (net of deferred income taxes) recorded in Other Comprehensive Income (“OCI”), partially offset by increases in the fair values of derivative financial instruments hedging against higher interest rates totaling $0.41 per common share (net of deferred income taxes) also recorded in OCI.

Results from Operations

Net interest income grew to $31.0 million in the second quarter of 2022, an increase of 4.8 percent from the linked quarter and 15.5 percent from the prior-year second quarter. NIM for second quarter 2022 was 3.66 percent compared to 3.61 percent for the linked quarter and 3.55 percent for the year-ago quarter. Excluding the impact of accretion and amortization of fair value acquisition accounting adjustments, Summit’s net interest margin would have been 3.62 percent for the second quarter of 2022, 3.60 percent for the linked quarter and 3.45 percent for the year-ago period.

Noninterest income, consisting primarily of service fee income from community banking activities and trust and wealth management fees, for second quarter 2022 was $3.86 million compared to $4.55 million for the linked quarter and $4.72 million for the comparable period of 2021. The Company recorded realized securities losses on debt securities of $289,000 in the second quarter of 2022 and $152,000 in the linked quarter. In addition, the Company recognized a loss on equity investments of $669,000 in second quarter 2022 compared to a gain of $372,000 in the linked quarter.

Mortgage origination revenue was $317,000 in the second quarter of 2022 compared to $339,000 in the linked quarter and $898,000 for the year-ago period.

Excluding gains and losses on debt securities and equity investments, noninterest income was $4.81 million for second quarter 2022 compared to $4.33 million for Q1 2022 and $4.59 million in the year-ago quarter primarily as result of higher deposit service charges and bank card fees.

Revenue from net interest income and noninterest income, excluding gains and losses on debt securities and equity investments, grew to $35.8 million, up 5.6 percent from $33.9 million in the linked quarter and 13.9 percent from $31.4 million in the year-ago quarter. Revenue, excluding gains and losses on debt securities and equity investments, for the first half of 2022, grew to $69.7 million, up 12.1 percent from the first half of 2021, outpacing the 4.0 percent noninterest expense increase recorded for the comparable six-month periods.

Total noninterest expense increased to $17.6 million in the second quarter of 2022, up 2.4 percent from $17.2 million in the linked quarter and 3.4 percent from $17.0 million for the prior-year second quarter. The sequential-quarter increase in total noninterest expense, primarily on higher salary and benefits expenses, reflected modest fluctuations in most other categories of operating costs.

Salary and benefit expenses of $10.0 million in the second quarter of 2022 increased from $9.70 million for the linked quarter and $8.23 million during the year-ago period. Higher group health insurance premiums and increased accruals for anticipated 2022 performance bonuses account for the primary reasons for the increases.

Net losses and expenses on foreclosed properties totaled $141,000 during second quarter 2022 compared to net gains in excess of expenses on foreclosed properties of $90,000 in the linked quarter and net losses and expenses on foreclosed properties of $746,000 in the year-ago period.

Other expenses were $2.36 million for Q2 2022 compared to $2.46 million for the linked quarter and $2.76 million in the year-ago period.The changes in these other expenses include:

•Fraud and robbery losses of $143,000 during the second quarter of 2022 compared to $90,000 and $16,000 in the linked and year-ago quarters, respectively.

•Virginia franchise tax of $170,000 during the second quarter of 2022 compared to $149,000 and $108,000 in the linked and year-ago quarters, respectively.

•Deferred director compensation plan-related income of $726,000 during the second quarter of 2022 compared to $400,000 during the linked quarter and plan-related expense of $190,000 in the year-ago quarter.

Summit’s efficiency ratio improved to 47.45 percent in the second quarter of 2022 from 49.44 percent in the linked quarter and 48.82 percent for the year-ago period. Non-interest expense to average assets improved to 1.91 percent in both the second quarter of 2022 and the linked quarter compared to 2.09 percent in the year-ago period.

Balance Sheet

As of June 30, 2022, total assets were $3.8 billion, an increase of $186.1 million, or 5.2 percent, since December 31, 2021 and an increase of $490.3 million, or 15.0 percent, since June 30, 2021.

Total loans net of unearned fees grew to $2.98 billion on June 30, 2022, up 4.4 percent during the quarter and 22.5 percent from June 30, 2021. Excluding PPP and mortgage warehouse lending, total loans grew to $2.80 billion on June 30, 2022, up 4.6 percent during the second quarter, 11.2 percent year-to-date and 22.7 percent since June 30, 2021.

Total commercial loans, including commercial and industrial (C&I) and commercial real estate (CRE) but excluding PPP lending, grew to $1.9 billion on June 30, 2022, up 4.2 percent during the second quarter, 12.6 percent year-to-date and 31.1 percent since June 30, 2021.

Residential real estate and consumer lending totaled $562.7 million on June 30, 2022, up 0.6 percent during the second quarter and down 0.9 percent year-to-date and 2.2 percent from June 30, 2021.

PPP balances were paid down to $3.54 million on June 30, 2022 from a peak of $98.5 million on September 30, 2020. Mortgage warehouse lines of credit, sourced solely from a participation arrangement with a large regional bank, have paid down to $171.4 million on June 30, 2022 from a peak of $252.5 million on June 30, 2020.

Deposits totaled $3.0 billion on June 30, 2022, a 1.1 percent decrease during the second quarter, a 1.1 percent increase year-to-date and a 9.0 percent increase since June 30, 2021. Core deposits declined 0.8 percent during the second quarter to $2.9 billion at June 30, 2022, and increased 0.9 percent year-to-date and 9.3 percent since June 30, 2021.Changes in core deposits by category are as follows:

•Non-interest bearing deposit accounts decreased $28.2 million or 4.5 percent in the second quarter of 2022 and increased $97.7 million or 19.4 percent since June 30, 2021.

•Interest bearing checking accounts grew $103.4 million or 9.1 percent in the second quarter of 2022 and $232.6 million or 23.1 percent since June 30, 2021.

•Savings accounts declined $57.0 million or 8.1 percent in the second quarter of 2022 and $31.9 million or 4.7 percent since June 30, 2021.

•Core time deposits declined $40.5 million or 9.5 percent in the second quarter of 2022 and $54.6 million or 12.4 percent since June 30, 2021.

Total shareholders’ equity was $333.9 million as of June 30, 2022 compared to $327.5 million at December 31, 2021 and $315.2 million at June 30, 2021.

Year-to-date 2022, TBVPS has increased $0.53. TBVPS was negatively impacted during the first six months of 2002 by unrealized net losses on debt securities AFS of $2.26 per common share (net of deferred income taxes) recorded in OCI during the first six months of 2022. However, these losses were partially offset by increased fair values of interest rate caps and swaps (also recorded in OCI) held as hedges against higher interest rates totaling $1.24 per common share (net of deferred income taxes), in the same period.

Summit had 12,763,422 outstanding common shares at the end of the second quarter of 2022 compared to 12,743,125 at year-end 2021.

As announced in the first quarter of 2020, the Board of Directors authorized the open market repurchase of up to 750,000 shares of the issued and outstanding shares of Summit's common stock, of which 323,577 shares have been repurchased to date. The timing and quantity of stock

purchases under this repurchase plan are at the discretion of management. During the second quarter of 2022, no shares of Summit’s common stock were repurchased under the Plan.

Asset Quality

Net loan charge-offs (“NCOs”) declined to $159,000, or 0.02 percent of average loans annualized, in the second quarter of 2022. NCOs of $509,000 represented 0.07 percent of average loan annualized in the linked quarter and $202,000 or 0.03 percent of average loan annualized in the year-ago period.

Summit recorded a $2.00 million provision for credit losses in the second quarter of 2022, reflecting reserve build to support the Company’s substantial growth in both loans and unfunded loan commitments and increasing forecasted economic uncertainty. The provision for credit losses was $1.95 million for the linked quarter and $1.00 million for the year-ago quarter.

Summit’s allowance for loan credit losses was $35.1 million on June 30, 2022, $32.6 million at the end of the linked quarter and $33.9 million on June 30, 2021.

The allowance for loan credit losses stood at 1.18 percent of total loans at June 30, 2022 compared to 1.17 percent at year-end 2021 and 1.39 percent at June 30, 2021. The allowance was 320.6 percent of nonperforming loans at June 30, 2022, compared to 254.4 percent at year-end 2021 and 148.2 percent at June 30, 2021.

Summit’s allowance for credit losses on unfunded loan commitments was $7.79 million on June 30, 2022, $8.39 million at the end of the linked quarter and $4.66 million on June 30, 2021. The allowance for credit losses on unfunded loan commitments decreased $600,000 during the most recent quarter, principally as result of a change in mix of unfunded commitments, whereas construction loan commitments, which have a higher historical loss ratio than do other loans as a whole, decreased while commercial unfunded lines of credit, which carry a lower loss factor and lower utilization rates, increased.

As of June 30, 2022, nonperforming assets (“NPAs”), consisting of nonperforming loans, foreclosed properties and repossessed assets, totaled $16.3 million, or 0.43 percent of assets, compared to NPAs of $18.6 million, or 0.51 percent of assets at the linked quarter-end, $22.6 million or 0.63 percent of assets at year-end 2021 and $36.0 million, or 1.10 percent of assets at the end of second quarter 2021. A loan relationship of $9.5 million impacted by the COVID-19 pandemic and on nonaccrual at June 30, 2021 was restored to full accrual status in July 2021.

About the Company

Summit Financial Group, Inc. is the $3.76 billion financial holding company for Summit Community Bank, Inc. Its talented bankers serve commercial and individual clients throughout West Virginia, the Washington, D.C. metropolitan area, Virginia, and Kentucky. Summit’s focus on in-market commercial lending and providing other business banking services in dynamic markets is designed to leverage its highly efficient operations and core deposits in strong legacy locations. Residential and consumer lending, trust and wealth management, and other retail financial services are offered through convenient digital and mobile banking platforms, including MySummitBank.com and 45 full-service branch locations. More information on Summit Financial

Group, Inc. (NASDAQ: SMMF), headquartered in West Virginia’s Eastern Panhandle in Moorefield, is available at SummitFGI.com.

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: the effect of the COVID-19 pandemic, including the negative impacts and disruptions on the communities we serve, and the domestic and global economy, which may have an adverse effect on our business; current and future economic and market conditions, including the effects of declines in housing prices, high unemployment rates, U.S. fiscal debt, budget and tax matters, geopolitical matters, and any slowdown in global economic growth; fiscal and monetary policies of the Federal Reserve; future provisions for credit losses on loans and debt securities; changes in nonperforming assets; changes in interest rates and interest rate relationships; demand for products and services; the degree of competition by traditional and non-traditional competitors; the successful integration of operations of our acquisitions; 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.

SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF)
Quarterly Performance Summary (unaudited) -- Q2 2022 vs Q2 2021
	For the Quarter Ended				Percent
Dollars in thousands	6/30/2022		6/30/2021		Change
Statements of Income
Interest income
Loans, including fees	$	32,766	$	27,697	18.3	%
Securities	2,752		2,202		25.0	%
Other	45		56		-19.6	%
Total interest income	35,563		29,955		18.7	%
Interest expense
Deposits	2,622		2,136		22.8	%
Borrowings	1,976		1,008		96.0	%
Total interest expense	4,598		3,144		46.2	%
Net interest income	30,965		26,811		15.5	%
Provision for credit losses	2,000		1,000		100.0	%
Net interest income after provision for credit losses	28,965		25,811		12.2	%
Noninterest income
Trust and wealth management fees	745		683		9.1	%
Mortgage origination revenue	317		898		-64.7	%
Service charges on deposit accounts	1,674		1,093		53.2	%
Bank card revenue	1,618		1,519		6.5	%
(Losses) on equity investments	(669)		—		n/a
Realized gains/(losses) on debt securities, net	(289)		127		-327.6	%
Bank owned life insurance and annuity income	331		275		20.4	%
Other income	129		120		7.5	%
Total noninterest income	3,856		4,715		-18.2	%
Noninterest expense
Salaries and employee benefits	10,030		8,230		21.9	%
Net occupancy expense	1,258		1,131		11.2	%
Equipment expense	1,791		1,598		12.1	%
Professional fees	507		428		18.5	%
Advertising and public relations	165		138		19.6	%
Amortization of intangibles	355		382		-7.1	%
FDIC premiums	190		488		-61.1	%
Bank card expense	810		685		18.2	%
Foreclosed properties expense, net of (gains)/losses	141		746		-81.1	%
Acquisition-related expenses	4		454		-99.1	%
Other expenses	2,358		2,756		-14.4	%
Total noninterest expense	17,609		17,036		3.4	%
Income before income taxes	15,212		13,490		12.8	%
Income tax expense	3,198		2,930		9.1	%
Net income	12,014		10,560		13.8	%
Preferred stock dividends	225		139		61.9	%
Net income applicable to common shares	$	11,789	$	10,421	13.1	%

SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF)
Quarterly Performance Summary (unaudited) -- Q2 2022 vs Q2 2021
	For the Quarter Ended						Percent
	6/30/2022			6/30/2021			Change
Per Share Data
Earnings per common share
Basic	$	0.92		$	0.80		15.0	%
Diluted	$	0.92		$	0.80		15.0	%
Cash dividends per common share	$	0.18		$	0.17		5.9	%
Common stock dividend payout ratio	19.5		%	21.2		%	-8.0	%
Average common shares outstanding
Basic	12,754,724			12,952,357			-1.5	%
Diluted	12,810,174			13,013,714			-1.6	%
Common shares outstanding at period end	12,763,422			12,963,057			-1.5	%
Performance Ratios
Return on average equity	14.48		%	13.67		%	5.9	%
Return on average tangible equity (C)	18.28		%	17.03		%	7.3	%
Return on average tangible common equity (D)	19.35		%	17.59		%	10.0	%
Return on average assets	1.30		%	1.29		%	0.8	%
Net interest margin (A)	3.66		%	3.55		%	3.1	%
Efficiency ratio (B)	47.45		%	48.82		%	-2.8	%
NOTES
(A) - Presented on a tax-equivalent basis assuming a federal tax rate of 21%.
(B) - Computed on a tax equivalent basis excluding acquisition-related expenses, gains/losses on sales of assets, write-downs of OREO properties to fair value and amortization of intangibles.
(C) - Return on average tangible equity = (Net income + Amortization of intangibles [after-tax]) / (Average shareholders' equity - Average intangible assets).
(D) - Return on average tangible common equity = (Net income applicable to common shares + Amortization of intangibles [after-tax]) / (Average common shareholders' equity - Average intangible assets).

SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF)
Six Month Performance Summary (unaudited) -- 2022 vs 2021
	For the Six Months Ended				Percent
Dollars in thousands	6/30/2022		6/30/2021		Change
Statements of Income
Interest income
Loans, including fees	$	62,991	$	55,234	14.0	%
Securities	5,374		4,359		23.3	%
Other	91		123		-26.0	%
Total interest income	68,456		59,716		14.6	%
Interest expense
Deposits	4,349		4,632		-6.1	%
Borrowings	3,587		2,022		77.4	%
Total interest expense	7,936		6,654		19.3	%
Net interest income	60,520		53,062		14.1	%
Provision for credit losses	3,950		2,500		58.0	%
Net interest income after provision for credit losses	56,570		50,562		11.9	%
Noninterest income
Trust and wealth management fees	1,503		1,321		13.8	%
Mortgage origination revenue	656		1,896		-65.4	%
Service charges on deposit accounts	3,074		2,193		40.2	%
Bank card revenue	3,109		2,860		8.7	%
(Losses) on equity investments	(297)		—		n/a
Realized gains/(losses) on debt securities, net	(442)		602		-173.4	%
Bank owned life insurance income and annuity income	615		573		7.3	%
Other income	183		244		-25.0	%
Total noninterest income	8,401		9,689		-13.3	%
Noninterest expense
Salaries and employee benefits	19,731		16,665		18.4	%
Net occupancy expense	2,499		2,305		8.4	%
Equipment expense	3,634		3,180		14.3	%
Professional fees	869		766		13.4	%
Advertising and public relations	337		228		47.8	%
Amortization of intangibles	734		787		-6.7	%
FDIC premiums	580		765		-24.2	%
Bank card expense	1,524		1,259		21.0	%
Foreclosed properties expense, net of (gains)/losses	51		972		-94.8	%
Acquisition-related expenses	33		893		-96.3	%
Other expenses	4,817		5,649		-14.7	%
Total noninterest expense	34,809		33,469		4.0	%
Income before income taxes	30,162		26,782		12.6	%
Income tax expense	6,455		5,863		10.1	%
Net income	23,707		20,919		13.3	%
Preferred stock dividends	450		139		223.7	%
Net income applicable to common shares	$	23,257	$	20,780	11.9	%

SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF)
Six Month Performance Summary (unaudited) -- 2022 vs 2021
	For the Six Months Ended						Percent
	6/30/2022			6/30/2021			Change
Per Share Data
Earnings per common share
Basic	$	1.82		$	1.61		13.0	%
Diluted	$	1.82		$	1.60		13.8	%
Cash dividends per common share	$	0.36		$	0.34		5.9	%
Common stock dividend payout ratio	19.8		%	21.3		%	-7.0	%
Average common shares outstanding
Basic	12,750,037			12,947,228			-1.5	%
Diluted	12,805,873			13,007,889			-1.6	%
Common shares outstanding at period end	12,763,422			12,963,057			-1.5	%
Performance Ratios
Return on average equity	14.34		%	14.09		%	1.8	%
Return on average tangible equity (C)	18.15		%	17.75		%	2.3	%
Return on average tangible common equity (D)	18.87		%	18.06		%	4.5	%
Return on average assets	1.30		%	1.30		%	—	%
Net interest margin (A)	3.64		%	3.60		%	1.1	%
Efficiency ratio (B)	48.42		%	49.18		%	-1.5	%
NOTES
(A) - Presented on a tax-equivalent basis assuming a federal tax rate of 21%.
(B) - Computed on a tax equivalent basis excluding acquisition-related expenses gains/losses on sales of assets, write-downs of OREO properties to fair value and amortization of intangibles.
(C) - Return on average tangible equity = (Net income + Amortization of intangibles [after-tax]) / (Average shareholders' equity - Average intangible assets).
(D) - Return on average tangible common equity = (Net income applicable to common shares + Amortization of intangibles [after-tax]) / (Average common shareholders' equity - Average intangible assets).

SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF)
Five Quarter Performance Summary (unaudited)
	For the Quarter Ended
Dollars in thousands	6/30/2022		3/31/2022		12/31/2021		9/30/2021		6/30/2021
Statements of Income
Interest income
Loans, including fees	$	32,766	$	30,224	$	28,979	$	28,416	$	27,697
Securities	2,752		2,623		2,763		2,348		2,202
Other	45		46		75		118		56
Total interest income	35,563		32,893		31,817		30,882		29,955
Interest expense
Deposits	2,622		1,727		1,718		1,832		2,136
Borrowings	1,976		1,612		1,267		1,013		1,008
Total interest expense	4,598		3,339		2,985		2,845		3,144
Net interest income	30,965		29,554		28,832		28,037		26,811
Provision for credit losses	2,000		1,950		1,500		—		1,000
Net interest income after provision for credit losses	28,965		27,604		27,332		28,037		25,811
Noninterest income
Trust and wealth management fees	745		757		847		718		683
Mortgage origination revenue	317		339		1,361		742		898
Service charges on deposit accounts	1,674		1,401		1,501		1,338		1,093
Bank card revenue	1,618		1,491		1,528		1,509		1,519
(Losses)/gains on equity investments	(669)		372		202		—		—
Realized gains/(losses) on debt securities, net	(289)		(152)		(109)		(68)		127
Bank owned life insurance and annuity income	331		283		293		160		275
Other income	129		54		330		168		120
Total noninterest income	3,856		4,545		5,953		4,567		4,715
Noninterest expense
Salaries and employee benefits	10,030		9,700		8,977		8,745		8,230
Net occupancy expense	1,258		1,242		1,265		1,254		1,131
Equipment expense	1,791		1,843		1,902		1,908		1,598
Professional fees	507		362		438		374		428
Advertising and public relations	165		172		216		254		138
Amortization of intangibles	355		378		387		390		382
FDIC premiums	190		390		330		354		488
Bank card expense	810		714		703		705		685
Foreclosed properties expense, net of (gains)/losses	141		(90)		403		370		746
Acquisition-related expenses	4		29		57		273		454
Other expenses	2,358		2,459		3,250		2,716		2,756
Total noninterest expense	17,609		17,199		17,928		17,343		17,036
Income before income taxes	15,212		14,950		15,357		15,261		13,490
Income tax expense	3,198		3,257		2,777		3,023		2,930
Net income	12,014		11,693		12,580		12,238		10,560
Preferred stock dividends	225		225		225		225		139
Net income applicable to common shares	$	11,789	$	11,468	$	12,355	$	12,013	$	10,421

SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF)
Five Quarter Performance Summary (unaudited)
	For the Quarter Ended
	6/30/2022			3/31/2022			12/31/2021			9/30/2021			6/30/2021
Per Share Data
Earnings per common share
Basic	$	0.92		$	0.90		$	0.96		$	0.93		$	0.80
Diluted	$	0.92		$	0.90		$	0.95		$	0.92		$	0.80
Cash dividends per common share	$	0.18		$	0.18		$	0.18		$	0.18		$	0.17
Common stock dividend payout ratio	19.1		%	19.7		%	18.5		%	19.1		%	21.2		%
Average common shares outstanding
Basic	12,754,724			12,745,297			12,916,555			12,964,575			12,952,357
Diluted	12,810,174			12,801,903			12,976,181			13,018,672			13,013,714
Common shares outstanding at period end	12,763,422			12,753,094			12,743,125			12,976,693			12,963,057
Performance Ratios
Return on average equity	14.48		%	14.20		%	15.48		%	15.30		%	13.67		%
Return on average tangible equity (C)	18.28		%	18.02		%	19.72		%	19.51		%	17.03		%
Return on average tangible common equity (D)	19.35		%	18.74		%	20.55		%	20.34		%	17.59		%
Return on average assets	1.30		%	1.30		%	1.42		%	1.42		%	1.29		%
Net interest margin (A)	3.66		%	3.61		%	3.49		%	3.47		%	3.55		%
Efficiency ratio (B)	47.45		%	49.44		%	48.85		%	49.52		%	48.82		%
NOTES
(A) - Presented on a tax-equivalent basis assuming a federal tax rate of 21%.
(B) - Computed on a tax equivalent basis excluding acquisition-related expenses, gains/losses on sales of assets, write-downs of OREO properties to fair value and amortization of intangibles.
(C) - Return on average tangible equity = (Net income + Amortization of intangibles [after-tax]) / (Average shareholders' equity - Average intangible assets).
(D) - Return on average tangible common equity = (Net income applicable to common shares + Amortization of intangibles [after-tax]) / (Average common shareholders' equity - Average intangible assets).

SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF)
Selected Balance Sheet Data (unaudited)
Dollars in thousands, except per share amounts	6/30/2022			3/31/2022			12/31/2021			9/30/2021			6/30/2021
Assets
Cash and due from banks	$	17,921		$	18,404		$	21,006		$	21,247		$	18,707
Interest bearing deposits other banks	31,680			42,853			57,452			189,862			176,282
Debt securities, available for sale	368,049			374,855			401,103			424,741			345,742
Debt securities, held to maturity	97,116			97,589			98,060			98,528			98,995
Equity investments	19,905			20,574			20,202			—			—
Other investments	18,329			10,974			11,304			10,649			10,661
Loans, net	2,941,813			2,817,998			2,729,093			2,521,704			2,395,885
Property held for sale	5,319			6,900			9,858			12,450			13,170
Premises and equipment, net	55,034			55,713			56,371			56,818			53,104
Goodwill and other intangible assets	62,856			63,212			63,590			63,977			53,858
Cash surrender value of life insurance      policies and annuities	71,073			70,825			60,613			60,241			60,087
Derivative financial instruments	31,452			24,455			11,187			10,380			9,885
Other assets	42,252			39,339			36,880			38,354			36,157
Total assets	$	3,762,799		$	3,643,691		$	3,576,719		$	3,508,951		$	3,272,533
Liabilities and Shareholders' Equity
Deposits	$	2,975,304		$	3,008,063		$	2,943,089		$	2,955,940		$	2,729,205
Short-term borrowings	291,447			140,146			140,146			140,146			140,146
Long-term borrowings and      subordinated debentures, net	123,311			123,260			123,159			49,739			49,710
Other liabilities	38,846			41,756			42,852			39,837			38,265
Shareholders' equity - preferred	14,920			14,920			14,920			14,920			14,920
Shareholders' equity - common	318,971			315,546			312,553			308,369			300,287
Total liabilities and shareholders' equity	$	3,762,799		$	3,643,691		$	3,576,719		$	3,508,951		$	3,272,533
Book value per common share	$	24.99		$	24.74		$	24.53		$	23.76		$	23.16
Tangible book value per common share (A)	$	20.07		$	19.79		$	19.54		$	18.83		$	19.01
Tangible common equity to tangible assets (B)	6.9		%	7.0		%	7.1		%	7.1		%	7.7		%
NOTES
(A) - Tangible book value per share = (Common shareholders' equity - Intangible assets) / Common shares outstanding.
(B) - Tangible common equity to tangible assets = (Common shareholder's equity - Intangible assets) / (Total assets - Intangible assets).

SUMMIT FINANCIAL GROUP INC. (NASDAQ: SMMF)
Regulatory Capital Ratios (unaudited)
	6/30/2022		3/31/2022		12/31/2021		9/30/2021		6/30/2021
Summit Financial Group, Inc.
CET1 Risk-based Capital	8.2	%	8.3	%	8.4	%	9.0	%	9.6	%
Tier 1 Risk-based Capital	9.2	%	9.3	%	9.5	%	10.2	%	10.9	%
Total Risk Based Capital	13.3	%	13.5	%	13.8	%	12.1	%	13.0	%
Tier 1 Leverage	8.4	%	8.4	%	8.3	%	8.4	%	8.9	%
Summit Community Bank, Inc.
CET1 Risk-based Capital	11.4	%	11.6	%	11.9	%	11.2	%	11.9	%
Tier 1 Risk-based Capital	11.4	%	11.6	%	11.9	%	11.2	%	11.9	%
Total Risk Based Capital	12.4	%	12.5	%	12.8	%	12.1	%	12.9	%
Tier 1 Leverage	10.4	%	10.5	%	10.4	%	9.2	%	9.7	%

SUMMIT FINANCIAL GROUP INC. (NASDAQ: SMMF)
Loan Composition (unaudited)
Dollars in thousands	6/30/2022		3/31/2022		12/31/2021		9/30/2021		6/30/2021
Commercial	$	455,202	$	447,482	$	365,301	$	317,855	$	326,468
Mortgage warehouse lines	171,399		164,895		227,869		161,628		105,288
Commercial real estate
Owner occupied	502,152		491,059		484,708		439,202		392,164
Non-owner occupied	963,646		910,174		866,031		835,071		784,415
Construction and development
Land and development	106,840		103,203		100,805		99,718		102,670
Construction	211,955		171,383		146,038		127,432		140,788
Residential real estate
Conventional	377,980		375,240		384,794		394,889		398,239
Jumbo	79,803		81,443		79,108		71,977		71,694
Home equity	71,136		70,770		72,112		71,496		72,956
Consumer	33,816		32,095		31,923		32,284		32,732
Other	2,947		2,877		2,702		2,558		2,356
Total loans, net of unearned fees	2,976,876		2,850,621		2,761,391		2,554,110		2,429,770
Less allowance for loan credit losses	35,063		32,623		32,298		32,406		33,885
Loans, net	$	2,941,813	$	2,817,998	$	2,729,093	$	2,521,704	$	2,395,885
Unfunded loan commitments	$	876,157	$	840,705	$	688,493	$	627,461	$	535,587

SUMMIT FINANCIAL GROUP INC. (NASDAQ: SMMF)
Deposit Composition (unaudited)
Dollars in thousands	6/30/2022		3/31/2022		12/31/2021		9/30/2021		6/30/2021
Core deposits
Non interest bearing checking	$	600,791	$	629,002	$	568,986	$	575,542	$	503,097
Interest bearing checking	1,238,368		1,134,964		1,127,298		1,121,028		1,005,725
Savings	645,099		702,069		698,156		693,686		677,000
Time deposits	386,562		427,076		451,713		467,024		441,139
Total core deposits	2,870,820		2,893,111		2,846,153		2,857,280		2,626,961
Brokered deposits	32,767		32,755		14,677		14,671		23,521
Other non-core time deposits	71,717		82,197		82,259		83,989		78,723
Total deposits	$	2,975,304	$	3,008,063	$	2,943,089	$	2,955,940	$	2,729,205

SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF)
Asset Quality Information (unaudited)
	For the Quarter Ended
Dollars in thousands	6/30/2022			3/31/2022			12/31/2021			9/30/2021			6/30/2021
Gross loan charge-offs	$	306		$	618		$	282		$	528		$	343
Gross loan recoveries	(147)			(109)			(89)			(158)			(141)
Net loan charge-offs	$	159		$	509		$	193		$	370		$	202
Net loan charge-offs to average loans (annualized)	0.02		%	0.07		%	0.03		%	0.06		%	0.03		%
Allowance for loan credit losses	$	35,063		$	32,623		$	32,298		$	32,406		$	33,885
Allowance for loan credit losses as a percentage     of period end loans	1.18		%	1.14		%	1.17		%	1.27		%	1.39		%
Allowance for credit losses on unfunded loan      commitments ("ULC'")	$	7,792		$	8,392		$	7,275		$	5,860		$	4,660
Allowance for credit losses on ULC as a percentage      of period end ULC	0.89		%	1.00		%	1.06		%	0.93		%	0.87		%
Nonperforming assets:
Nonperforming loans
Commercial	$	345		$	433		$	740		$	459		$	968
Commercial real estate	2,703			4,765			4,603			4,643			14,430
Residential construction and development	1,053			968			1,560			448			621
Residential real estate	6,799			5,549			5,772			5,514			6,800
Consumer	37			20			21			48			38
Total nonperforming loans	10,937			11,735			12,696			11,112			22,857
Foreclosed properties
Commercial real estate	440			1,251			1,389			2,192			2,281
Commercial construction and development	2,332			2,332			2,332			2,925			3,146
Residential construction and development	2,293			3,018			5,561			6,712			6,859
Residential real estate	254			299			576			621			884
Total foreclosed properties	5,319			6,900			9,858			12,450			13,170
Other repossessed assets	—			—			—			—			—
Total nonperforming assets	$	16,256		$	18,635		$	22,554		$	23,562		$	36,027
Nonperforming loans to period end loans	0.37		%	0.41		%	0.46		%	0.44		%	0.94		%
Nonperforming assets to period end assets	0.43		%	0.51		%	0.63		%	0.67		%	1.10		%
Troubled debt restructurings
Performing	$	18,657		$	18,971		$	18,887		$	20,535		$	20,799
Nonperforming	2,236			1,822			2,039			1,141			1,235
Total troubled debt restructurings	$	20,893		$	20,793		$	20,926		$	21,676		$	22,034

Loans Past Due 30-89 Days (unaudited)
Dollars in thousands	6/30/2022		3/31/2022		12/31/2021		9/30/2021		6/30/2021
Commercial	$	989	$	388	$	751	$	304	$	414
Commercial real estate	4,084		1,446		683		281		733
Construction and development	821		645		45		1,215		1,911
Residential real estate	3,452		3,407		3,552		2,643		3,594
Consumer	196		69		190		193		404
Other	14		28		22		1		—
Total	$	9,556	$	5,983	$	5,243	$	4,637	$	7,056

SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF)
Average Balance Sheet, Interest Earnings & Expenses and Average Rates
Q2 2022 vs Q1 2022 vs Q2 2021 (unaudited)
	Q2 2022						Q1 2022						Q2 2021
	Average		Earnings/		Yield/		Average		Earnings /		Yield /		Average		Earnings /		Yield /
Dollars in thousands	Balances		Expense		Rate		Balances		Expense		Rate		Balances		Expense		Rate
ASSETS
Interest earning assets
Loans, net of unearned interest (1)
Taxable	$	2,902,370	$	32,721	4.52	%	$	2,771,842	$	30,178	4.42	%	$	2,455,757	$	27,593	4.51	%
Tax-exempt (2)	5,127		57		4.46	%	5,369		58		4.38	%	11,370		132		4.66	%
Securities
Taxable	297,701		1,765		2.38	%	320,170		1,657		2.10	%	285,092		1,351		1.90	%
Tax-exempt (2)	178,043		1,249		2.81	%	180,473		1,223		2.75	%	147,703		1,078		2.93	%
Interest bearing deposits other banks and Federal funds sold	37,757		45		0.48	%	72,883		46		0.26	%	154,677		56		0.15	%
Total interest earning assets	3,420,998		35,837		4.20	%	3,350,737		33,162		4.01	%	3,054,599		30,210		3.97	%
Noninterest earning assets
Cash & due from banks	16,351						19,226						19,095
Premises & equipment	55,449						56,043						53,210
Intangible assets	63,058						63,429						54,072
Other assets	165,788						142,719						116,398
Allowance for credit losses	(33,232)						(32,462)						(34,674)
Total assets	$	3,688,412					$	3,599,692					$	3,262,700
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Interest bearing liabilities
Interest bearing
demand deposits	$	1,189,324	$	1,274	0.43	%	$	1,135,068	$	465	0.17	%	$	995,673	$	371	0.15	%
Savings deposits	672,353		689		0.41	%	700,115		573		0.33	%	665,735		634		0.38	%
Time deposits	517,360		659		0.51	%	542,360		689		0.52	%	562,605		1,131		0.81	%
Short-term borrowings	207,227		696		1.35	%	140,230		373		1.08	%	140,146		464		1.33	%
Long-term borrowings and      subordinated debentures	123,263		1,280		4.17	%	123,203		1,239		4.08	%	49,694		544		4.39	%
Total interest bearing liabilities	2,709,527		4,598		0.68	%	2,640,976		3,339		0.51	%	2,413,853		3,144		0.52	%
Noninterest bearing liabilities
Demand deposits	605,724						586,903						503,116
Other liabilities	41,307						42,493						36,842
Total liabilities	3,356,558						3,270,372						2,953,811
Shareholders' equity - preferred	14,920						14,921						11,254
Shareholders' equity - common	316,934						314,399						297,635
Total liabilities and   shareholders' equity	$	3,688,412					$	3,599,692					$	3,262,700
NET INTEREST EARNINGS			$	31,239					$	29,823					$	27,066
NET INTEREST MARGIN					3.66	%					3.61	%					3.55	%
(1) For purposes of this table, nonaccrual loans are included in average loan balances.
(2) Interest income on tax-exempt securities and loans has been adjusted assuming a Federal tax rate of 21% for all periods presented. The tax equivalent adjustment resulted in an increase in interest income of $274,000, $269,000 and $255,000 for Q2 2022, Q1 2022 and Q2 2021, respectively.

SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF)
Average Balance Sheet, Interest Earnings & Expenses and Average Rates
YTD 2022 vs YTD 2021 (unaudited)
	YTD 2022						YTD 2021
	Average		Earnings /		Yield /		Average		Earnings /		Yield /
Dollars in thousands	Balances		Expense		Rate		Balances		Expense		Rate
ASSETS
Interest earning assets
Loans, net of unearned interest (1)
Taxable	$	2,837,467	$	62,900	4.47	%	$	2,406,007	$	55,012	4.61	%
Tax-exempt (2)	5,248		115		4.42	%	12,021		281		4.71	%
Securities
Taxable	308,872		3,420		2.23	%	275,742		2,646		1.94	%
Tax-exempt (2)	179,252		2,473		2.78	%	146,300		2,168		2.99	%
Interest bearing deposits other banks    and Federal funds sold	55,222		91		0.33	%	160,592		123		0.15	%
Total interest earning assets	3,386,061		68,999		4.11	%	3,000,662		60,230		4.05	%
Noninterest earning assets
Cash & due from banks	17,781						18,592
Premises & equipment	55,746						53,263
Intangible assets	63,242						54,496
Other assets	154,200						114,014
Allowance for loan losses	(32,849)						(33,696)
Total assets	$	3,644,181					$	3,207,331
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Interest bearing liabilities
Interest bearing
demand deposits	$	1,162,346	$	1,739	0.30	%	$	978,029	$	765	0.16	%
Savings deposits	686,157		1,262		0.37	%	654,053		1,279		0.39	%
Time deposits	529,791		1,348		0.51	%	573,107		2,588		0.91	%
Short-term borrowings	173,914		1,068		1.24	%	140,146		933		1.34	%
Long-term borrowings and      subordinated debentures	123,234		2,519		4.12	%	49,679		1,089		4.42	%
Total interest bearing liabilities	2,675,442		7,936		0.60	%	2,395,014		6,654		0.56	%
Noninterest bearing liabilities
Demand deposits	596,365						477,766
Other liabilities	41,779						37,614
Total liabilities	3,313,586						2,910,394
Shareholders' equity - preferred	14,920						5,658
Shareholders' equity - common	315,675						291,279
Total liabilities and   shareholders' equity	$	3,644,181					$	3,207,331
NET INTEREST EARNINGS			$	61,063					$	53,576
NET INTEREST MARGIN					3.64	%					3.60	%
(1) For purposes of this table, nonaccrual loans are included in average loan balances.
(2) Interest income on tax-exempt securities and loans has been adjusted assuming a Federal tax rate of 21%. The tax equivalent adjustment resulted in an increase in interest income of $543,000 and $514,000 for the YTD 2022 and YTD 2021, respectively.