0001437749-23-020880.txt : 20230727 0001437749-23-020880.hdr.sgml : 20230727 20230727145745 ACCESSION NUMBER: 0001437749-23-020880 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 16 CONFORMED PERIOD OF REPORT: 20230727 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20230727 DATE AS OF CHANGE: 20230727 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: 231117660 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: SUMMIT FINANCIAL GROUP INC DATE OF NAME CHANGE: 20000330 FORMER COMPANY: FORMER CONFORMED NAME: SOUTH BRANCH VALLEY BANCORP INC DATE OF NAME CHANGE: 19920703 8-K 1 smmf20230621_8k.htm FORM 8-K smmf20230621_8k.htm
false 0000811808 0000811808 2023-07-27 2023-07-27
 
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):  July 27, 2023
 
logo.jpg
Summit Financial Group, Inc.
(Exact name of registrant as specified in its charter)
     
West Virginia
0-16587
55-0672148
(State or other jurisdiction of
(Commission File Number)
(IRS Employer
incorporation or organization)
 
Identification No.)
 
300 North Main Street
 
Moorefield West Virginia
26836
(Address of principal executive offices)
(Zip Code)
 
(304)530-1000
(Registrant's telephone number, including area code)
 
Not Applicable
(Former name or address, if changed since last report)
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
 
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 
Securities registered pursuant to Section 12(b) of the Act:
 
Title of each class
Trading Symbol(s)
Name of each exchange on which registered
Common Stock, Par Value $2.50 per share
SMMF
NASDAQ Global Select Market
 
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 or Rule 12b-2 of the Securities Exchange Act of 1934.
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
 
 

 
 
 
Item 2.02. Results of Operations and Financial Condition.
 
On July 27, 2023, Summit Financial Group, Inc. (“Summit”) issued a News Release announcing its earnings for the three and six months ended June 30, 2023. This News Release is furnished as Exhibit 99.1 and is incorporated herein by reference.
 
 
 
Item 9.01 Financial Statements and Exhibits
 
(d) Exhibits
 
Exhibit Number
Description
99.1
104 Cover Page Interactive Data File (Embedded within the Inline XBRL document)
 
 

 
SIGNATURES
 
 
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: July 27, 2023
By: /s/ Julie R. Markwood 
 
Julie R. Markwood
 
Executive Vice President and Chief Accounting Officer
 
 
EX-99.1 2 ex_536153.htm EXHIBIT 99.1 ex_536153.htm

EXHIBIT 99.1

logo2.jpg

 

 

FOR RELEASE 6:00 AM ET, July 27, 2023

 

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

Telephone:    (304) 530-0552

Email:        rtissue@summitfgi.com

 

SUMMIT FINANCIAL GROUP REPORTS STRONG REVENUE GROWTH, IMPROVED NET INTEREST MARGIN, STRATEGIC BALANCE SHEET EXPANSION, AND EARNINGS OF $0.54 PER SHARE FOR SECOND QUARTER 2023

 

Strong Performance Drives Growth Strategy and Promising Outlook

 

MOOREFIELD, WV – July 27, 2023 (GLOBE NEWSWIRE) – Summit Financial Group, Inc. (“Company” or “Summit”) (NASDAQ: SMMF) today reported financial results for the second quarter of 2023, showcasing strong core operating performance marked by notable strength in its net interest margin. The Company’s continued success underscores its position as a reliable partner in the financial services industry, reflecting a sound strategy and solid operational execution.

 

The Company, which serves commercial and individual clients across West Virginia, the Washington D.C. metropolitan area, Virginia, Kentucky, the Eastern Shore of Maryland and Delaware through Summit Community Bank, Inc., reported net income applicable to common shares of $7.98 million, or $0.54 per diluted share, for the second quarter of 2023, as compared to $13.9 million, or $1.08 per diluted share, for the first quarter of 2023 and $11.8 million, or $0.92 per diluted share, for the second quarter of 2022. Lower earnings in Q2 2023 were driven primarily by significant acquisition-related expenses attributable to the acquisition of PSB Holding Corp. and its bank subsidiary, Provident State Bank, Inc. (“PSB”) and by higher provision for credit losses recorded on purchased non-credit deteriorated (“non-PCD”) loans from PSB and on a nonperforming commercial real estate participation loan. 

 

"We are pleased to report strong core performance in second quarter of 2023, characterized by significant revenue growth, an improved net interest margin and strategic balance sheet expansion," noted H. Charles Maddy III, President, and Chief Executive Officer of Summit Financial Group. "The completion of our acquisition of PSB Holding Corp. and Provident State Bank, Inc. is an important milestone for Summit, as it expanded our footprint to the Eastern Shore of Maryland and Delaware, providing exciting growth opportunities in new markets," continued Mr. Maddy.

 

"Our net interest margin (NIM) increased by 6 basis points from the linked quarter, driven by higher yields on interest-earning assets and effective management of funding costs," said Mr. Maddy. Furthermore, our loan portfolio showed positive momentum, with total core loan portfolio, excluding acquired loans, increasing 6 percent on an annualized basis during the quarter, and over 9 percent since June 30, 2022" noted Mr. Maddy.

 

 

 

“Despite the recent acquisition, our efficiency ratio remains below 48 percent, near its all-time record low, affirming our long tradition of optimizing operational performance," continued Mr. Maddy. "As we move forward, Summit remains steadfast in our growth strategy and optimistic about our future. Our solid financial foundation, coupled with a talented team, positions us well to create long-term value for our shareholders through organic growth and strategic initiatives," concluded Mr. Maddy.

 

Key Highlights for the Second Quarter of 2023

 

 

The Company completed its acquisition, effective April 1, 2023, of PSB headquartered in Preston, Maryland, expanding its footprint in the Eastern Shore of Maryland and Delaware.

 

 

Net interest margin (“NIM”) increased 6 basis points to 3.89 percent from the linked quarter and by 23 basis points from the prior-year quarter. This increase was primarily driven by increased yields on interest-earning assets. However, it was partially offset by higher costs of deposits and other funding sources.

 

 

Summit’s core deposits grew 12.9 percent during the second quarter of 2023 as result of the PSB acquisition. Excluding acquired deposits, Summit’s core deposits decreased 2.6 percent during Q2 2023.

 

 

Total loans, excluding acquired loans, mortgage warehouse lines of credit, and PPP lending, increased 1.53 percent (6.12 percent annualized) during the second quarter of 2023 and 9.2 percent since June 30, 2022.  

 

 

The Company’s provision for credit losses totaled $8.00 million in the second quarter of 2023 compared to $1.5 million in the linked quarter. Included in the Company’s Q2 2023 provision for credit losses was $3.01 million to establish an allowance on non-PCD loans acquired from PSB in accordance with the Current Expected Credit Loss (“CECL”) accounting standard and $3.66 million to recognize an allowance on a nonperforming commercial real estate loan participation.

 

 

Total non-interest expense increased by 55.2 percent to $27.3 million. This increase is largely attributed to the acquisition of PSB including $4.16 million of acquisition-related expenses. Consequently, our annualized non-interest expense ratio increased to 2.41 percent of average assets from 1.97 percent in the previous quarter and 1.91 percent in the same quarter last year.  Excluding acquisition-related expenses, annualized non-interest expense would have been 2.05 percent of average assets for Q2 2023.

 

 

The Company achieved an efficiency ratio of 47.90 percent compared to 48.00 percent in the linked quarter and 47.45 percent in the prior-year quarter.

 

 

Nonperforming assets (“NPAs”) increased to 0.35 percent of total assets at period end, up 4 basis points during the quarter but down 8 basis points from the prior-year quarter.

 

 

 

 

 

PSB Acquisition

 

On April 1, 2023, Summit completed its acquisition of PSB.  Accordingly, PSB’s results of operations are included in Summit’s consolidated results of operation from the date of acquisition, and therefore Summit’s second quarter and first half 2023 results reflect increased levels of average balances, income and expense compared to its second quarter and first half 2022 results. 

 

Upon acquisition, PSB had total assets of $568.3 million, loans amounting to $381.5 million, and deposits totaling $498.0 million. Through the first half of 2023, the acquisition-related expenses totaled $4.49 million, with $4.16 million of the costs being incurred in the second quarter.

 

Results from Operations

 

Net interest income totaled $40.3 million in the second quarter of 2023, marking an increase of 30.2 percent from the prior-year second quarter and 17.9 percent from the linked quarter. NIM for the first quarter 2023 was 3.89 percent compared to 3.83 percent for the linked quarter and 3.66 percent for the prior-year quarter.

 

Summit recorded an $8.0 million provision for credit losses in the second quarter of 2023, which includes $3.01 million to establish an allowance on non-PCD loans acquired from PSB in accordance with the CECL accounting standard and $3.66 million to provide an allowance to reflect a nonperforming loan participation with a regional bank secured by a shopping complex at the fair value of its collateral. The provision for credit losses was $1.5 million for the linked quarter and $2.0 million in the second quarter of 2022.

 

Noninterest income, consisting primarily of service fee income from community banking activities and trust and wealth management fees, for second quarter 2023 was $5.42 million compared to $4.39 million for the linked quarter and $3.86 million for the comparable period of 2022. The Company recorded realized securities losses on debt securities of $211,000 in the second quarter of 2023 and $59,000 in the linked quarter. In addition, the Company recognized net gains on equity investments of $150,000 in the second quarter 2023 compared to $45,000 in the linked quarter.

 

Mortgage origination revenue decreased to $169,000 in the second quarter of 2023 compared to $171,000 in the linked quarter and $317,000 for the year-ago period reflecting continuing negative impact of higher interest rates on demand for new mortgage loans.

 

Excluding gains and losses from debt securities and equity investments, the combined revenue from net interest income and non-interest income for Q2 2023 rose to $45.8 million. This represents an increase of 18.7 percent from $38.6 million in the linked quarter and a substantial 28.0 percent growth from $35.8 million recorded in the second quarter of 2022.

 

Total noninterest expense increased to $27.3 million in the second quarter of 2023, up 40.9 percent from $19.4 million in the linked quarter and up 55.2 percent from $17.6 million for the prior-year second quarter.  These increases are primarily due to the operational costs of the recently acquired PSB and acquisition-related expenses of $4.16 million in Q2 2023.

 

 

 

Salary and benefit expenses of $12.2 million in the second quarter of 2023 increased from $10.8 million for the linked quarter and $10.0 million from the prior-year second quarter. This increase was primarily due to the PSB acquisition and higher group health insurance premiums.

 

Acquisition-related expenses consisting of contract termination costs, executive and employee severance benefits and legal and consulting fees, were $4.16 million for Q2 2023 compared to $331,000 for the linked quarter and $4,000 for Q2 2022.

 

Other expenses were $3.64 million for Q2 2023 were higher compared to $2.97 million for the linked quarter and $2.36 million in the year-ago period, principally as result of the PSB acquisition.

 

Summit’s efficiency ratio was 47.90 percent in the second quarter of 2023, marginally higher than the 47.45 percent for the second quarter of 2022 and down compared to 48.00 percent in the linked quarter. Non-interest expense to average assets was 2.41 percent in the second quarter of 2023 compared to 1.97 percent in the linked quarter and 1.91 percent in the year-ago quarter.

 

Balance Sheet

 

As of June 30, 2023, total assets were $4.6 billion, an increase of $635.6 million, or 16.2 percent since December 31, 2022.  Excluding acquired PSB assets, total assets increased by $71.1 million, or 1.8 percent since December 31, 2022.

 

Total loans net of unearned fees increased to $3.6 billion as of June 30, 2023, from $3.1 billion at December 31, 2022, and increased 19.3 percent from the second quarter of 2022. Total loans, excluding those related to mortgage warehouse lending, PPP lending and acquired loans, reached $3.1 billion on June 30, 2023. This represents an increase of 1.53 percent (or 6.12 percent when annualized) during the quarter just ended.

 

Total commercial loans, including commercial and industrial (C&I) and commercial real estate (CRE) but excluding PPP lending, increased 13.3 percent (26.6 percent annualized) during second quarter to $2.3 billion as of June 30, 2023.

 

Residential real estate and consumer lending totaled $731.9 million on June 30, 2023, reflecting an increase of 19.3 percent (38.6 percent annualized) during the second quarter.

 

As of June 30, 2023, PPP balances were paid down to zero and mortgage warehouse lines of credit, sourced solely from a participation arrangement with a large regional bank, totaled $118.8 million compared to $130.4 million as of December 31, 2022, and $171.4 million at the year-ago period end.

 

Deposits totaled $3.7 billion on June 30, 2023, a 13.2 percent increase during the second quarter. Core deposits increased 12.9 percent during the second quarter 2023 to $3.6 billion.  Excluding acquired deposits, core deposits decreased $82.7 million, or 2.6 percent during the second quarter 2023.  Adjusted uninsured deposits (excluding uninsured public deposits otherwise secured or collateralized as required by law) were 31.9 percent of total deposits at June 30, 2023 compared to 29.8 percent at year-end 2022 and 25.6 percent at the year-ago period end.

 

 

 

Total shareholders’ equity was $413.2 million as of June 30, 2023, compared to $354.5 million at December 31, 2022. During the second quarter 2023, Summit issued 1,880,732 common shares at a fair value of $39.0 million as consideration in conjunction with the PSB acquisition. Summit paid a quarterly common dividend of $0.20 per share in the second quarter of 2023.

 

Tangible Book Value Per Share (“TBVPS”) decreased by $0.97 to $21.93 during the second quarter of 2023, representing a 4.3 percent decrease. This decline was primarily influenced by the acquisition of PSB, which represented TBVPS dilution of $1.52 resulting from the transaction’s issuance of 1,880,732 common shares and its creation of intangible assets of $15.6 million. Summit had 14,672,147 outstanding common shares at June 30, 2023, compared to 12,783,646 at year-end 2022. 

 

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 2023, no shares of Summit’s common stock were repurchased under the Plan.

 

Asset Quality

 

The Company recorded net loan charge-offs (“NCOs”) of $3.8 million during the second quarter 2023, representing 0.50 percent of average loans annualized, compared to net loan recoveries of $63,000, representing (0.01) percent of average loans annualized, in the first quarter of 2023. NCOs of $159,000 represented 0.02 percent of average loans annualized in the year-ago period.

 

Summit’s allowance for loan credit losses was $45.7 million on June 30, 2023, $40.8 million at the end of the linked quarter, and $35.1 million on June 30, 2022. As of June 30, 2023, the allowance for loan credit losses stood at 1.29 percent of total loans, reflecting a slight increase compared to the rate of 1.26 percent recorded as of December 31, 2022. The allowance for loan credit losses was increased by $1.50 million in Q2 2023 as result of purchased credit deteriorated loans from PSB. In terms of the allowance's coverage, it represented 402.8 percent of nonperforming loans at June 30, 2023, in contrast to the figure of 497.2 percent at the prior year-end, December 31, 2022.

 

Summit’s allowance for credit losses on unfunded loan commitments was $7.33 million as of June 30, 2023, compared to $6.57 million at the end of the linked quarter. The allowance for credit losses on unfunded loan commitments increased $760,000 during the most recent quarter. The acquisition of PSB resulted in an increase to the allowance for credit losses on unfunded loan commitments of $235,000, while the remaining increase was principally the result of a change in the mix of our unfunded commitments.  Construction loan commitments, which on average have a higher historical loss ratio than do other loans, increased, while our mortgage warehouse unfunded lines of credit, which carry a lower loss factor, decreased.

 

As of March 31, 2023, nonperforming assets (“NPAs”), consisting of nonperforming loans, foreclosed properties, and repossessed assets, totaled $16.1 million, or 0.32 percent of assets, compared to NPAs of $12.9 million, or 0.33 percent of assets at year-end 2022.

 

 

 

About the Company

 

Summit Financial Group, Inc. is the $4.6 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, Kentucky, Eastern Shore of Maryland and Delaware. 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 53 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.

 

Non-GAAP Financial Measures

 

In addition to the results of operations presented in accordance with Generally Accepted Accounting Principles (GAAP), Summits management uses, and this press release contains or references, certain non-GAAP financial measures, such as tangible common equity/tangible assets; efficiency ratio; return on average tangible equity and return on average tangible common equity. Summit believes these financial measures provide information useful to investors in understanding our operational performance and business and performance trends which facilitate comparisons with the performance of others in the financial services industry. Although Summit believes that these non-GAAP financial measures enhance investors' understanding of Summits business and performance, these non-GAAP financial measures should not be considered an alternative to GAAP.

 

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 2023 vs Q2 2022

 

   

For the Quarter Ended

   

Percent

 

Dollars in thousands

 

06/30/2023

   

06/30/2022

   

Change

 

Statements of Income

                       

Interest income

                       

Loans, including fees

  $ 54,413     $ 32,766       66.1 %

Securities

    6,247       2,752       127.0 %

Other

    203       45       351.1 %

Total interest income

    60,863       35,563       71.1 %

Interest expense

                       

Deposits

    17,851       2,622       580.8 %

Borrowings

    2,699       1,976       36.6 %

Total interest expense

    20,550       4,598       346.9 %
                         

Net interest income

    40,313       30,965       30.2 %

Provision for credit losses

    8,000       2,000       300.0 %

Net interest income after provision for credit losses

    32,313       28,965       11.6 %
                         

Noninterest income

                       

Trust and wealth management fees

    854       745       14.6 %

Mortgage origination revenue

    169       317       -46.7 %

Service charges on deposit accounts

    1,943       1,674       16.1 %

Bank card revenue

    1,987       1,618       22.8 %

Net gains/(losses) on equity investments

    150       (669 )     -122.4 %

Net realized losses on debt securities

    (211 )     (289 )     -27.0 %

Bank owned life insurance and annuity income

    431       331       30.2 %

Other income

    100       129       -22.5 %

Total noninterest income

    5,423       3,856       40.6 %

Noninterest expense

                       

Salaries and employee benefits

    12,156       10,030       21.2 %

Net occupancy expense

    1,528       1,258       21.5 %

Equipment expense

    2,361       1,791       31.8 %

Professional fees

    471       507       -7.1 %

Advertising and public relations

    264       165       60.0 %

Amortization of intangibles

    999       355       181.4 %

FDIC premiums

    742       190       290.5 %

Bank card expense

    951       810       17.4 %

Foreclosed properties expense, net of (gains)/losses

    48       141       -66.0 %

Acquisition-related expense

  4,163     4     n/m  

Other expenses

    3,641       2,358       54.4 %

Total noninterest expense

    27,324       17,609       55.2 %

Income before income taxes

    10,412       15,212       -31.6 %

Income tax expense

    2,203       3,198       -31.1 %

Net income

    8,209       12,014       -31.7 %

Preferred stock dividends

    225       225       0.0 %
                         

Net income applicable to common shares

  $ 7,984     $ 11,789       -32.3 %

 

 

 

SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF)

Quarterly Performance Summary (unaudited) -- Q2 2023 vs Q2 2022

 

   

For the Quarter Ended

   

Percent

 
   

06/30/2023

   

06/30/2022

   

Change

 

Per Share Data

                       

Earnings per common share

                       

Basic

  $ 0.54     $ 0.92       -41.3 %

Diluted

  $ 0.54     $ 0.92       -41.3 %
                         

Cash dividends per common share

  $ 0.20     $ 0.18       11.1 %

Common stock dividend payout ratio

 

35.7

%     19.5 %     83.1 %
                         

Average common shares outstanding

                       

Basic

    14,668,923       12,754,724       15.0 %

Diluted

    14,703,636       12,810,174       14.8 %
                         

Common shares outstanding at period end

    14,672,147       12,763,422       15.0 %
                         

Performance Ratios

                       

Return on average equity

    7.99 %     14.48 %     -44.8 %

Return on average tangible equity (C)(E)

    10.86 %     18.28 %     -40.6 %

Return on average tangible common equity (D)(E)

    11.37 %     19.35 %     -41.2 %

Return on average assets

    0.73 %     1.30 %     -43.8 %

Net interest margin (A)

    3.89 %     3.66 %     6.3 %

Efficiency ratio (B)

    47.90 %     47.45 %     0.9 %

 

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 + Amortization of intangibles [after-tax]) / (Average common shareholders' equity - Average intangible assets).

 
(E) - See Non-GAAP Financial Measures for additional information relating to the calculation of this item.

 

 

 

SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF)

Six Month Performance Summary (unaudited) -- 2023 vs 2022

 

   

For the Six Months Ended

   

Percent

 

Dollars in thousands

 

06/30/2023

   

06/30/2022

   

Change

 

Statements of Income

                       

Interest income

                       

Loans, including fees

  $ 99,897     $ 62,991       58.6 %

Securities

    11,066       5,374       105.9 %

Other

    375       91       312.1 %

Total interest income

    111,338       68,456       62.6 %

Interest expense

                       

Deposits

    31,851       4,349       632.4 %

Borrowings

    4,984       3,587       38.9 %

Total interest expense

    36,835       7,936       364.2 %
                         

Net interest income

    74,503       60,520       23.1 %

Provision for credit losses

    9,500       3,950       140.5 %

Net interest income after provision for credit losses

    65,003       56,570       14.9 %
                         

Noninterest income

                       

Trust and wealth management fees

    1,665       1,503       10.8 %

Mortgage origination revenue

    340       656       -48.2 %

Service charges on deposit accounts

    3,335       3,074       8.5 %

Bank card revenue

    3,555       3,109       14.3 %

Net gains/(losses) on equity investments

    195       (297 )     -165.7 %

Net realized losses on debt securities, net

    (270 )     (442 )     -38.9 %

Bank owned life insurance and annuity income

    767       615       24.7 %

Other income

    222       183       21.3 %

Total noninterest income

    9,809       8,401       16.8 %

Noninterest expense

                       

Salaries and employee benefits

    22,963       19,731       16.4 %

Net occupancy expense

    2,861       2,499       14.5 %

Equipment expense

    4,391       3,634       20.8 %

Professional fees

    847       869       -2.5 %

Advertising and public relations

    434       337       28.8 %

Amortization of intangibles

    1,342       734       82.8 %

FDIC premiums

    1,072       580       84.8 %

Bank card expense

    1,648       1,524       8.1 %

Foreclosed properties expense, net of (gains)/losses

    62       51       21.6 %

Acquisition-related expense

  4,494     33     n/m  

Other expenses

    6,609       4,817       37.2 %

Total noninterest expense

    46,723       34,809       34.2 %

Income before income taxes

    28,089       30,162       -6.9 %

Income tax expense

    5,779       6,455       -10.5 %

Net income

    22,310       23,707       -5.9 %

Preferred stock dividends

    450       450       0.0 %
                         

Net income applicable to common shares

  $ 21,860     $ 23,257       -6.0 %

 

 

 

SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF)

Six Month Performance Summary (unaudited) -- 2023 vs 2022

 

   

For the Six Months Ended

   

Percent

 
   

06/30/2023

   

06/30/2022

   

Change

 

Per Share Data

                       

Earnings per common share

                       

Basic

  $ 1.59     $ 1.82       -12.6 %

Diluted

  $ 1.59     $ 1.82       -12.6 %
                         

Cash dividends per common share

  $ 0.40     $ 0.36       11.1 %

Common stock dividend payout ratio

    25.1 %     19.8 %     27.1 %
                         

Average common shares outstanding

                       

Basic

    13,731,594       12,750,037       7.7 %

Diluted

    13,772,592       12,805,873       7.5 %
                         

Common shares outstanding at period end

    14,672,147       12,763,422       15.0 %
                         

Performance Ratios

                       

Return on average equity

    11.53 %     14.34 %     -19.6 %

Return on average tangible equity (C)(E)

    14.78 %     18.15 %     -18.6 %

Return on average tangible common equity (D)(E)

    15.52 %     18.87 %     -17.8 %

Return on average assets

    1.05 %     1.30 %     -19.2 %

Net interest margin (A)

    3.86 %     3.64 %     6.0 %

Efficiency ratio (B)

    47.95 %     48.42 %     -1.0 %

 

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 + Amortization of intangibles [after-tax]) / (Average common shareholders' equity - Average intangible assets).

 
(E) - See Non-GAAP Financial Measures for additional information relating to the calculation of this item.
 

 

SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF)

Five Quarter Performance Summary (unaudited)

 

   

For the Quarter Ended

 

Dollars in thousands

 

6/30/2023

   

3/31/2023

   

12/31/2022

   

9/30/2022

   

6/30/2022

 

Statements of Income

                                       

Interest income

                                       

Loans, including fees

  $ 54,413     $ 45,485     $ 43,589     $ 38,784     $ 32,766  

Securities

    6,247       4,819       4,181       3,497       2,752  

Other

    203       171       70       170       45  

Total interest income

    60,863       50,475       47,840       42,451       35,563  

Interest expense

                                       

Deposits

    17,851       14,000       10,194       6,140       2,622  

Borrowings

    2,699       2,286       3,293       2,198       1,976  

Total interest expense

    20,550       16,286       13,487       8,338       4,598  
                                         

Net interest income

    40,313       34,189       34,353       34,113       30,965  

Provision for credit losses

    8,000       1,500       1,500       1,500       2,000  

Net interest income after provision for credit losses

    32,313       32,689       32,853       32,613       28,965  
                                         

Noninterest income

                                       

Trust and wealth management fees

    854       811       750       725       745  

Mortgage origination revenue

    169       171       286       538       317  

Service charges on deposit accounts

    1,943       1,392       1,526       1,550       1,674  

Bank card revenue

    1,987       1,568       1,513       1,639       1,618  

Net gains/(losses) on equity investments

    150       45       280       283       (669 )

Net realized losses on debt securities

    (211 )     (59 )     (24 )     (242 )     (289 )

Bank owned life insurance and annuity income

    431       336       367       229       331  

Other income

    100       122       167       165       129  

Total noninterest income

    5,423       4,386       4,865       4,887       3,856  

Noninterest expense

                                       

Salaries and employee benefits

    12,156       10,807       10,532       10,189       10,030  

Net occupancy expense

    1,528       1,333       1,328       1,301       1,258  

Equipment expense

    2,361       2,030       1,769       1,851       1,791  

Professional fees

    471       376       386       372       507  

Advertising and public relations

    264       170       280       276       165  

Amortization of intangibles

    999       343       351       354       355  

FDIC premiums

    742       330       352       292       190  

Bank card expense

    951       696       679       726       810  

Foreclosed properties expense, net of (gains)/losses

    48       15       159       26       141  

Acquisition-related expenses

    4,163       331       81             4  

Other expenses

    3,641       2,968       2,932       3,834       2,358  

Total noninterest expense

    27,324       19,399       18,849       19,221       17,609  

Income before income taxes

    10,412       17,676       18,869       18,279       15,212  

Income tax expense

    2,203       3,575       3,783       3,856       3,198  

Net income

    8,209       14,101       15,086       14,423       12,014  

Preferred stock dividends

    225       225       225       225       225  
                                         

Net income applicable to common shares

  $ 7,984     $ 13,876     $ 14,861     $ 14,198     $ 11,789  

 

 

 

SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF)

Five Quarter Performance Summary (unaudited)

 

   

For the Quarter Ended

 
   

6/30/2023

   

3/31/2023

   

12/31/2022

   

9/30/2022

   

6/30/2022

 

Per Share Data

                                       

Earnings per common share

                                       

Basic

  $ 0.54     $ 1.09     $ 1.16     $ 1.11     $ 0.92  

Diluted

  $ 0.54     $ 1.08     $ 1.16     $ 1.11     $ 0.92  
                                         

Cash dividends per common share

  $ 0.20     $ 0.20     $ 0.20     $ 0.20     $ 0.18  

Common stock dividend payout ratio

    36.7 %     18.1 %     16.9 %     17.7 %     19.1 %
                                         

Average common shares outstanding

                                       

Basic

    14,668,923       12,783,851       12,775,703       12,766,473       12,754,724  

Diluted

    14,703,636       12,830,102       12,837,637       12,835,670       12,810,174  
                                         

Common shares outstanding at period end

    14,672,147       12,786,404       12,783,646       12,774,645       12,763,422  
                                         

Performance Ratios

                                       

Return on average equity

    7.99 %     15.55 %     17.50 %     17.05 %     14.48 %

Return on average tangible equity (C)(E)

    10.86 %     19.10 %     21.75 %     21.33 %     18.28 %

Return on average tangible common equity (D)(E)

    11.37 %     20.10 %     22.96 %     22.20 %     19.00 %

Return on average assets

    0.73 %     1.43 %     1.54 %     1.51 %     1.30 %

Net interest margin (A)

    3.89 %     3.83 %     3.80 %     3.84 %     3.66 %

Efficiency ratio (B)

    47.90 %     48.00 %     46.40 %     47.95 %     47.45 %

 

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 + Amortization of intangibles [after-tax]) / (Average common shareholders' equity - Average intangible assets).

 
(E) - See Non-GAAP Financial Measures for additional information relating to the calculation of this item.

 

 

 

SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF)

Selected Balance Sheet Data (unaudited)

 

Dollars in thousands, except per share amounts

 

6/30/2023

   

3/31/2023

   

12/31/2022

   

9/30/2022

   

6/30/2022

 
                                         

Assets

                                       

Cash and due from banks

  $ 23,341     $ 16,488     $ 16,469     $ 16,141     $ 17,921  

Interest bearing deposits other banks

    39,902       54,328       28,248       29,510       31,680  

Debt securities, available for sale

    512,038       431,933       405,201       383,965       368,049  

Debt securities, held to maturity

    95,200       95,682       96,163       96,640       97,116  

Equity investments

    30,818       29,867       29,494       20,314       19,905  

Other investments

    16,014       12,696       16,029       18,105       18,329  

Loans, net

    3,506,880       3,059,099       3,043,919       3,038,377       2,941,813  

Property held for sale

    4,742       5,128       5,067       5,193       5,319  

Premises and equipment, net

    60,967       54,491       53,981       54,628       55,034  

Goodwill and other intangible assets

    76,423       61,807       62,150       62,502       62,856  

Cash surrender value of life insurance policies and annuities

    84,790       72,019       71,640       71,216       71,073  

Derivative financial instruments

    39,951       34,758       40,506       42,179       31,452  

Other assets

    61,204       49,111       47,825       48,529       42,252  

Total assets

  $ 4,552,270     $ 3,977,407     $ 3,916,692     $ 3,887,299     $ 3,762,799  
                                         

Liabilities and Shareholders' Equity

                                       

Deposits

  $ 3,735,034     $ 3,299,846     $ 3,169,879     $ 3,108,072     $ 2,975,304  

Short-term borrowings

    232,150       140,150       225,999       273,148       291,447  

Long-term borrowings and subordinated debentures, net

    123,776       123,660       123,543       123,427       123,311  

Other liabilities

    48,136       44,205       42,741       40,978       38,846  

Total liabilities

    4,139,096       3,607,861       3,562,162       3,545,625       3,428,908  

Preferred stock and related surplus

    14,920       14,920       14,920       14,920       14,920  

Common stock and related surplus

    130,227       90,939       90,696       90,345       90,008  

Retained earnings

    276,762       271,712       260,393       248,084       236,438  

Accumulated other comprehensive income (loss)

    (8,735 )     (8,025 )     (11,479 )     (11,675 )     (7,475 )

Total shareholders' equity

    413,174       369,546       354,530       341,674       333,891  

Total liabilities and shareholders' equity

  $ 4,552,270     $ 3,977,407     $ 3,916,692     $ 3,887,299     $ 3,762,799  
                                         

Book value per common share

  $ 27.14     $ 27.73     $ 26.57     $ 25.58     $ 24.99  

Tangible book value per common share (A)(C)

  $ 21.93     $ 22.90     $ 21.70     $ 20.69     $ 20.07  

Tangible common equity to tangible assets (B)(C)

    7.2 %     7.5 %     7.2 %     6.9 %     6.9 %

 

NOTES

 

(A) - Tangible book value per share = (Common stock and related surplus plus Retained earnings plus Accumulated other comprehensive income/loss - Intangible assets) / Common shares outstanding.

(B) - Tangible common equity to tangible assets = (Common stock and related surplus plus Retained earnings plus Accumulated other comprehensive income/loss - Intangible assets) / (Total assets - Intangible assets).

(C) - See Non-GAAP Financial Measures for additional information relating to the calculaton of this item.

 

 

 

SUMMIT FINANCIAL GROUP INC. (NASDAQ: SMMF)

Loan Composition (unaudited)

 

Dollars in thousands

 

6/30/2023

   

3/31/2023

   

12/31/2022

   

9/30/2022

   

6/30/2022

 
                                         

Commercial

  $ 511,457     $ 498,268     $ 501,844     $ 512,771     $ 455,202  

Mortgage warehouse lines

    118,785       86,240       130,390       194,740       171,399  

Commercial real estate

                                       

Owner occupied

    566,447       469,560       467,050       473,298       502,152  

Non-owner occupied

    1,193,927       1,036,358       1,004,368       960,627       963,646  

Construction and development

                                       

Land and development

    117,371       102,351       106,362       104,437       106,840  

Construction

    309,709       290,556       282,935       248,564       211,955  

Residential real estate

                                       

Conventional

    483,998       395,312       386,874       382,203       377,980  

Jumbo

    117,219       111,475       92,103       87,449       79,803  

Home equity

    86,050       70,167       71,986       72,756       71,136  

Consumer

    44,429       36,531       35,372       35,116       33,816  

Other

    3,169       3,117       3,534       3,166       2,947  

Total loans, net of unearned fees

    3,552,561       3,099,935       3,082,818       3,075,127       2,976,876  

Less allowance for loan credit losses

    45,681       40,836       38,899       36,750       35,063  

Loans, net

  $ 3,506,880     $ 3,059,099     $ 3,043,919     $ 3,038,377     $ 2,941,813  
                                         

Unfunded loan commitments

  $ 957,278     $ 907,757     $ 925,657     $ 889,854     $ 876,157  

 

 

 

 

SUMMIT FINANCIAL GROUP INC. (NASDAQ: SMMF)

Deposit Composition (unaudited)

 

Dollars in thousands

 

6/30/2023

   

3/31/2023

   

12/31/2022

   

9/30/2022

   

6/30/2022

 

Core deposits

                                       

Non interest bearing checking

  $ 679,139     $ 552,716     $ 553,616     $ 619,067     $ 600,791  

Interest bearing checking

    2,024,341       1,886,011       1,743,299       1,475,643       1,238,368  

Savings

    512,129       462,631       496,751       582,922       645,099  

Time deposits

    375,860       278,410       294,630       338,668       386,562  

Total core deposits

    3,591,469       3,179,768       3,088,296       3,016,300       2,870,820  
                                         

Brokered deposits

    54,399       71,451       32,790       32,778       32,767  

Other non-core time deposits

    89,166       48,627       48,793       58,994       71,717  

Total deposits

  $ 3,735,034     $ 3,299,846     $ 3,169,879     $ 3,108,072     $ 2,975,304  
                                         

Estimated uninsured deposits (A)

  $ 1,189,908     $ 933,703     $ 946,188     $ 757,038     $ 762,466  

 

(A) - Excludes uninsured public funds otherwise secured or collateralized as required by law

 

SUMMIT FINANCIAL GROUP INC. (NASDAQ: SMMF)
Regulatory Capital Ratios (unaudited)

 

   

6/30/2023

   

3/31/2023

   

12/31/2022

   

9/30/2022

   

6/30/2022

 

Summit Financial Group, Inc.

                                       

CET1 Risk-based Capital

    8.7 %     8.9 %     8.6 %     8.2 %     8.2 %

Tier 1 Risk-based Capital

    9.5 %     9.8 %     9.5 %     9.2 %     9.2 %

Total Risk Based Capital

    13.3 %     14.0 %     13.5 %     13.1 %     13.3 %

Tier 1 Leverage

    8.4 %     8.7 %     8.5 %     8.4 %     8.4 %
                                         

Summit Community Bank, Inc.

                                       

CET1 Risk-based Capital

    11.3 %     11.9 %     11.6 %     11.3 %     11.4 %

Tier 1 Risk-based Capital

    11.3 %     11.9 %     11.6 %     11.3 %     11.4 %

Total Risk Based Capital

    12.5 %     13.1 %     12.6 %     12.2 %     12.4 %

Tier 1 Leverage

    9.9 %     10.6 %     10.4 %     10.3 %     10.4 %

 

 

 

SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF)

Asset Quality Information (unaudited)

 

   

For the Quarter Ended

 

Dollars in thousands

 

6/30/2023

   

3/31/2023

   

12/31/2022

   

9/30/2022

   

6/30/2022

 
                                         

Gross loan charge-offs

  $ 4,174     $ 164     $ 250     $ 265     $ 306  

Gross loan recoveries

    (346 )     (227 )     (249 )     (257 )     (147 )

Net loan charge-offs

  $ 3,828     $ (63 )   $ 1     $ 8     $ 159  
                                         

Net loan charge-offs to average loans (annualized)

    0.43 %     -0.01 %     0.00 %     0.00 %     0.02 %
                                         

Allowance for loan credit losses

  $ 45,681     $ 40,836     $ 38,899     $ 36,750     $ 35,063  

Allowance for loan credit losses as a percentage of period end loans

    1.29 %     1.32 %     1.26 %     1.19 %     1.18 %

Allowance for credit losses on unfunded loan commitments ("ULC'")

  $ 7,332     $ 6,572     $ 6,947     $ 7,597     $ 7,792  

Allowance for credit losses on ULC as a percentage of period end ULC

    0.81 %     0.72 %     0.75 %     0.85 %     0.89 %
                                         

Nonperforming assets:

                                       

Nonperforming loans

                                       

Commercial

  $ 254     $ 402     $ 93     $ 347     $ 345  

Commercial real estate

    5,970       1,700       1,750       1,860       2,703  

Residential construction and development

    772       813       851       902       1,053  

Residential real estate

    4,298       4,322       5,117       6,083       6,799  

Consumer

    46       65       12       8       37  

Total nonperforming loans

    11,340       7,302       7,823       9,200       10,937  

Foreclosed properties

                                       

Commercial real estate

    297       297       297       297       440  

Commercial construction and development

    2,187       2,187       2,187       2,332       2,332  

Residential construction and development

    2,161       2,293       2,293       2,293       2,293  

Residential real estate

    97       351       290       271       254  

Total foreclosed properties

    4,742       5,128       5,067       5,193       5,319  

Other repossessed assets

                             

Total nonperforming assets

  $ 16,082     $ 12,430     $ 12,890     $ 14,393     $ 16,256  
                                         

Nonperforming loans to period end loans

    0.32 %     0.24 %     0.25 %     0.30 %     0.37 %

Nonperforming assets to period end assets

    0.35 %     0.31 %     0.33 %     0.37 %     0.43 %

 

 

SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF)

Loans Past Due 30-89 Days (unaudited)

 

Dollars in thousands

 

6/30/2023

   

3/31/2023

   

12/31/2022

   

9/30/2022

   

6/30/2022

 
                                         

Commercial

  $ 1,006     $ 463     $ 3,168     $ 1,329     $ 989  

Commercial real estate

    513       1,000       641       1,550       4,084  

Construction and development

    161       3,459       317       236       821  

Residential real estate

    4,933       2,311       6,231       2,824       3,452  

Consumer

    389       252       253       216       196  

Other

    17       13       22       4       14  

Total

  $ 7,019     $ 7,498     $ 10,632     $ 6,159     $ 9,556  

 

 

 

SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF)

Average Balance Sheet, Interest Earnings & Expenses and Average Rates

Q2 2023 vs Q1 2023 vs Q2 2022 (unaudited)

 

   

Q2 2023

   

Q1 2023

   

Q2 2022

 
   

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

  $ 3,516,306     $ 54,374       6.20 %   $ 3,087,068     $ 45,421       5.97 %   $ 2,902,370     $ 32,721       4.52 %

Tax-exempt (2)

    4,144       49       4.74 %     6,086       81       5.40 %     5,127       57       4.46 %

Securities

                                                                       

Taxable

    428,039       4,900       4.59 %     314,004       3,412       4.41 %     297,701       1,765       2.38 %

Tax-exempt (2)

    209,931       1,705       3.26 %     216,430       1,781       3.34 %     178,043       1,249       2.81 %

Interest bearing deposits other banks and Federal funds sold

    35,218       203       2.31 %     34,330       171       2.02 %     37,757       45       0.48 %

Total interest earning assets

    4,193,638       61,231       5.86 %     3,657,918       50,866       5.64 %     3,420,998       35,837       4.20 %
                                                                         

Noninterest earning assets

                                                                       

Cash & due from banks

    23,588                       17,387                       16,351                  

Premises & equipment

    60,872                       54,112                       55,449                  

Intangible assets

    80,445                       62,024                       63,058                  

Other assets

    212,104                       190,533                       165,788                  

Allowance for loan credit losses

    (44,312 )                     (39,507 )                     (33,232 )                

Total assets

  $ 4,526,335                     $ 3,942,467                     $ 3,688,412                  
                                                                         

LIABILITIES AND SHAREHOLDERS' EQUITY

                                         
                                                                         

Liabilities

                                                                       

Interest bearing liabilities

                                                                       

Interest bearing demand deposits

  $ 1,985,134     $ 13,423       2.71 %   $ 1,819,505     $ 10,796       2.41 %   $ 1,189,324     $ 1,274       0.43 %

Savings deposits

    528,694       2,000       1.52 %     480,207       1,917       1.62 %     672,353       689       0.41 %

Time deposits

    513,236       2,428       1.90 %     389,252       1,287       1.34 %     517,360       659       0.51 %

Short-term borrowings

    207,418       1,212       2.34 %     166,365       824       2.01 %     207,227       696       1.35 %

Long-term borrowings and subordinated debentures

    123,843       1,487       4.82 %     123,599       1,462       4.80 %     123,263       1,280       4.17 %

Total interest bearing liabilities

    3,358,325       20,550       2.45 %     2,978,928       16,286       2.22 %     2,709,527       4,598       0.68 %
                                                                         

Noninterest bearing liabilities

                                                                       

Demand deposits

    706,391                       557,209                       605,724                  

Other liabilities

    50,863                       43,508                       41,307                  

Total liabilities

    4,115,579                       3,579,645                       3,356,558                  
                                                                         

Shareholders' equity - preferred

    14,920                       14,920                       14,920                  

Shareholders' equity - common

    395,836                       347,902                       316,934                  

Total liabilities and shareholders' equity

  $ 4,526,335                     $ 3,942,467                     $ 3,688,412                  
                                                                         

NET INTEREST EARNINGS

          $ 40,681                     $ 34,580                     $ 31,239          
                                                                         

NET INTEREST MARGIN

                    3.89 %                     3.83 %                     3.66 %

(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 $368,000, $391,000 and $274,000 for Q2 2023, Q1 2023 and Q2 2022, respectively.

 

 

 

SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF)

Average Balance Sheet, Interest Earnings & Expenses and Average Rates

YTD 2023 vs YTD 2022 (unaudited)

 

   

YTD 2023

   

YTD 2022

 
   

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

  $ 3,302,776     $ 99,794       6.09 %   $ 2,837,467     $ 62,900       4.47 %

Tax-exempt (2)

    5,109       130       5.13 %     5,248       115       4.42 %

Securities

                                               

Taxable

    371,330       8,312       4.51 %     308,872       3,420       2.23 %

Tax-exempt (2)

    213,162       3,486       3.30 %     179,252       2,473       2.78 %

Interest bearing deposits other banks and Federal funds sold

    34,641       375       2.18 %     55,222       91       0.33 %

Total interest earning assets

    3,927,018       112,097       5.76 %     3,386,061       68,999       4.11 %
                                                 

Noninterest earning assets

                                               

Cash & due from banks

    20,231                       17,781                  

Premises & equipment

    57,511                       55,746                  

Intangible assets

    71,285                       63,242                  

Other assets

    201,267                       154,200                  

Allowance for loan losses

    (41,925 )                     (32,849 )                

Total assets

  $ 4,235,387                     $ 3,644,181                  
                                                 

LIABILITIES AND SHAREHOLDERS' EQUITY

                                               
                                                 

Liabilities

                                               

Interest bearing liabilities

                                               

Interest bearing demand deposits

  $ 1,903,945     $ 24,219       2.57 %   $ 1,162,346     $ 1,739       0.30 %

Savings deposits

    504,392       3,917       1.57 %     686,157       1,262       0.37 %

Time deposits

    451,774       3,715       1.66 %     529,791       1,348       0.51 %

Short-term borrowings

    187,159       2,036       2.19 %     173,914       1,068       1.24 %

Long-term borrowings and subordinated debentures

    123,656       2,948       4.81 %     123,234       2,519       4.12 %

Total interest bearing liabilities

    3,170,926       36,835       2.34 %     2,675,442       7,936       0.60 %
                                                 

Noninterest bearing liabilities

                                               

Demand deposits

    630,390                       596,365                  

Other liabilities

    47,150                       41,779                  

Total liabilities

    3,848,466                       3,313,586                  
                                                 

Shareholders' equity - preferred

    14,920                       14,920                  

Shareholders' equity - common

    372,001      

 

              315,675                  

Total liabilities and shareholders' equity

  $ 4,235,387                     $ 3,644,181                  
                                                 

NET INTEREST EARNINGS

          $ 75,262                     $ 61,063          
                                                 

NET INTEREST MARGIN

                    3.86 %                     3.64 %

 

 

(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 $759,000 and $543,000 for YTD 2023 and YTD 2022 periods, respectively.

 

 
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Document And Entity Information
Jul. 27, 2023
Document Information [Line Items]  
Entity, Registrant Name Summit Financial Group, Inc.
Document, Type 8-K
Document, Period End Date Jul. 27, 2023
Entity, Incorporation, State or Country Code WV
Entity, File Number 0-16587
Entity, Tax Identification Number 55-0672148
Entity, Address, Address Line One 300 North Main Street
Entity, Address, City or Town Moorefield
Entity, Address, State or Province WV
Entity, Address, Postal Zip Code 26836
City Area Code 304
Local Phone Number 530-1000
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Common Stock, Par Value $2.50 per share
Trading Symbol SMMF
Security Exchange Name NASDAQ
Entity, Emerging Growth Company false
Amendment Flag false
Entity, Central Index Key 0000811808
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