Exhibit 99
FOR RELEASE 6:00 AM EDT, THURSDAY, APRIL 20, 2006
| Contact: | Robert S. Tissue, Sr. Vice President & CFO |
| Telephone: | (304) 530-0552 |
Email: | rtissue@SummitFGI.com |
SUMMIT FINANCIAL GROUP REPORTS Q1 2006 DILUTED EPS OF $0.41, UP 20.6%
MOOREFIELD, WV—April 20, 2006--Summit Financial Group, Inc. (Nasdaq: SMMF) today reported first quarter 2006 net income of $3.0 million, or $0.41 per diluted share, compared with $2.4 million or $0.34 per diluted share for the first quarter of 2005. On a per share basis, earnings increased 20.6 percent over the prior-year period. First quarter 2006 results reflect strong revenue growth, both from community banking and mortgage banking activities, and controlled expense growth. For the first quarter of 2006, the returns on average shareholders' equity and average assets were 15.60 percent and 1.05 percent, respectively, compared with prior-year period ratios of 14.53 percent and 1.08 percent.
H. Charles Maddy, III, President and Chief Executive Officer, commented, “We are pleased with our strong quarterly results. Our northern Virginia markets continue to generate good lending opportunities, a trend we anticipate will continue. We are further pleased that asset quality, which remains excellent, has not been compromised by our loan growth. Our positive trends in both loans and core deposits make us optimistic regarding growth prospects for 2006.”
Mr. Maddy continued, “We typically experience a slowdown in mortgage originations for the fourth and first quarters, and the past two quarters have been no exception. Since inception, however, our quarterly originations have been increasing year-over-year, despite rising interest rates. We believe this reflects very favorably on Summit and our understanding of our products, our markets, and our clientele.”
FIRST QUARTER CONSOLIDATED RESULTS
Total revenue for the first quarter of 2006, consisting of net interest income plus non-interest income, was $16.2 million, an increase of 17.3 percent over the first quarter of 2005. Net interest income increased 20.6 percent above the prior-year period, to $8.6 million, reflecting 26.6 percent growth in average earning assets, partially offset by a 20 basis point decline in the net interest margin to 3.39 percent (unchanged from the previous quarter’s net interest margin of 3.39 percent). Mr. Maddy noted that funding costs continue to pressure margins, as loan growth surpassed growth in retail deposits, requiring continued reliance on higher cost brokered deposits.
Non-interest income was $7.6 million, an increase of 13.8 percent over the prior-year period. Mortgage origination revenue from Summit Mortgage, the Company's mortgage banking unit, increased 12.4 percent, while bank service fees, insurance commissions and other income grew 15.4 percent, 55.4 percent, and 22.4 percent respectively.
Non-interest expense for the first quarter of 2006 was $11.5 million, a 14.5 percent increase over the $10.1 million reported for the first quarter of 2005. Salaries and employee benefits grew $616,000 or 13.6 percent and represented the largest category of expense growth, followed by other expense, which grew $440,000 or 25.9%. The efficiency ratio improved to 69.16 percent for the first quarter of 2006, from 70.26 percent for the prior-year period.
Asset quality remains strong. Net charge-offs were $62,000 for the first quarter of 2006, equivalent to an annualized 0.03 percent of average loans. Nonperforming assets were $2.3 million, or 0.20 percent of assets at March 31, 2006, unchanged on a percentage basis from twelve months ago. At period-end, the allowance for losses was 0.77 percent of loans.
Assets at March 31, 2006 were $1.14 billion, an increase of 25.4 percent over the last twelve months. The increase was driven by portfolio loan growth of $202.3 million, up 32.2 percent, to $831.5 million, which consisted principally of increases in the commercial real estate and construction and development loan portfolios.
Deposits at March 31, 2006 were $730.7 million, an increase of $193.3 million, or 36.0 percent from twelve months ago. Checking and savings accounts increased 30.9 percent year-over-year. Mr. Maddy added, “Deposit gathering continues to be a primary focus for us. We have intensified our efforts to build our core deposit base, which includes a more competitive line of products and a retail compensation structure tied to core deposit growth. These initiatives are yielding measurable success.”
Shareholders' equity at period end was $75.8 million, an increase of 14.2 percent over the last twelve months. Common shares outstanding totaled 7,134,920 at March 31, 2006.
OPERATING SEGMENT RESULTS
Community Banking Financial Performance
Net income for the first quarter of 2006 increased 23.3 percent over the prior-year period to $2.9 million. Total revenue increased 20.5 percent to $9.5 million, while non-interest expense increased 18.9 percent to $5.0 million. The Community Banking segment's efficiency ratio was 53.76 percent for the first quarter of 2006 compared with 52.90 percent for the prior-year first quarter.
Mortgage Banking Financial Performance
For the first quarter of 2006, net income was $333,000 compared with $226,000 for the first quarter of 2005, an increase of 47.3 percent. Mortgage banking fees generated from loan sales were $6.6 million, up 12.4 percent from the $5.9 million reported in the prior-year period, reflecting a 14.4 percent increase in loan sales to $76.0 million. Mortgage origination revenue per loan sold increased 2.5 percent, to $4,600, as did the average loan size, up 4.3 percent to $53,700.
Loan originations in the first quarter of 2006 were $73.0 million, a seasonal decline of 6.8 percent from the linked quarter but 5.9 percent ahead of the prior-year first quarter. Non-interest expense, primarily associated with loan originations, totaled $6.2 million, an 11.3 percent increase over the $5.6 million incurred in the prior-year period. Expenses per loan originated increased 5.1 percent in first quarter 2006 compared to first quarter 2005.
ABOUT THE COMPANY
Summit Financial Group, Inc., a financial holding company with total assets of $1.1 billion, operates fourteen banking locations through its two wholly-owned community banks: Summit Community Bank, headquartered in Moorefield, West Virginia; and Shenandoah Valley National Bank in Winchester, Virginia. Summit also operates Summit Mortgage, a residential mortgage loan originator headquartered in Chesapeake, Virginia and Summit Insurance Services, LLC in Moorefield, West Virginia.
FORWARD-LOOKING STATEMENTS
This press release contains comments or information that constitute forward-looking statements (within the meaning of the Private Securities Litigation Act of 1995) that are based on current expectations that involve a number of risks and uncertainties. Words such as “expects”, “anticipates”, “believes”, “estimates” and other similar expressions or future or conditional verbs such as “will”, “should”, “would” and “could” are intended to identify such forward-looking statements.
Although we believe the expectations reflected in such forward-looking statements are reasonable, actual results may differ materially. Factors that might cause such a difference include changes in interest rates and interest rate relationships; demand for products and services; the degree of competition by traditional and non-traditional competitors; changes in banking laws and regulations; changes in tax laws; the impact of technological advances; the outcomes of contingencies; trends in customer behavior as well as their ability to repay loans; and changes in the national and local economy. We undertake no obligation to revise these statements following the date of this press release.
SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF) | ||||||||||
Quarterly Performance Summary -- Q1 2006 vs Q1 2005 | ||||||||||
For the Quarter Ended | Percent | |||||||||
Dollars in thousands, except per share amounts | 3/31/2006 | 3/31/2005 | Change | |||||||
Condensed Statements of Income | ||||||||||
| Interest income | ||||||||||
| Loans, including fees | $ | 15,492 | $ | 10,010 | 54.8 | % | ||||
| Securities | 2,647 | 2,258 | 17.2 | % | ||||||
| Other | 24 | 25 | -4.0 | % | ||||||
| Total interest income | 18,163 | 12,293 | 47.8 | % | ||||||
| Interest expense | ||||||||||
| Deposits | 5,153 | 2,517 | 104.7 | % | ||||||
| Borrowings | 4,379 | 2,621 | 67.1 | % | ||||||
| Total interest expense | 9,532 | 5,138 | 85.5 | % | ||||||
| Net interest income | 8,631 | 7,155 | 20.6 | % | ||||||
| Provision for loan losses | 395 | 330 | 19.7 | % | ||||||
| Net interest income after provision | ||||||||||
| for loan losses | 8,236 | 6,825 | 20.7 | % | ||||||
| Noninterest income | ||||||||||
| Insurance commissions | 230 | 148 | 55.4 | % | ||||||
| Service fee income | 631 | 547 | 15.4 | % | ||||||
| Mortgage origination revenue | 6,584 | 5,856 | 12.4 | % | ||||||
| Securities gains (losses) | - | - | n/a | |||||||
| Other income | 142 | 116 | 22.4 | % | ||||||
| Total noninterest income | 7,587 | 6,667 | 13.8 | % | ||||||
| Noninterest expense | ||||||||||
| Salaries and employee benefits | 5,158 | 4,542 | 13.6 | % | ||||||
| Net occupancy expense | 571 | 429 | 33.1 | % | ||||||
| Equipment expense | 520 | 493 | 5.5 | % | ||||||
| Postage expense | 1,791 | 1,567 | 14.3 | % | ||||||
| Advertising | 1,339 | 1,325 | 1.1 | % | ||||||
| Other expenses | 2,139 | 1,699 | 25.9 | % | ||||||
| Total noninterest expense | 11,518 | 10,055 | 14.5 | % | ||||||
| Income before income taxes | 4,305 | 3,437 | 25.3 | % | ||||||
| Income taxes | 1,334 | 1,026 | 30.0 | % | ||||||
| Net income | $ | 2,971 | $ | 2,411 | 23.2 | % | ||||
Per Share Data | ||||||||||
| Basic earnings | $ | 0.42 | $ | 0.34 | 23.5 | % | ||||
| Diluted earnings | $ | 0.41 | $ | 0.34 | 20.6 | % | ||||
| Average shares outstanding | ||||||||||
| Basic | 7,128,076 | 7,039,783 | 1.3 | % | ||||||
| Diluted | 7,192,924 | 7,171,099 | 0.3 | % | ||||||
Performance Ratios | ||||||||||
| Return on average equity | 15.60 | % | 14.53 | % | 7.4 | % | ||||
| Return on average assets | 1.05 | % | 1.08 | % | -2.8 | % | ||||
| Net interest margin - taxable equivalent | 3.39 | % | 3.59 | % | -5.6 | % | ||||
| Efficiency ratio consolidated(A) | 69.16 | % | 70.26 | % | -1.6 | % | ||||
| Efficiency ratio excluding mortgage banking (A) | 53.76 | % | 52.90 | % | 1.6 | % | ||||
NOTE: (A) - Computed on a tax equivalent basis excluding nonrecurring income and expense items and amortization of intangibles.
SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF) | ||||||||||||||||
Five Quarter Performance Summary | ||||||||||||||||
For the Quarter Ended | ||||||||||||||||
Dollars in thousands, except per share amounts | 3/31/2006 | 12/31/2005 | 9/30/2005 | 6/30/2005 | 3/31/2005 | |||||||||||
Condensed Statements of Income | ||||||||||||||||
| Interest income | ||||||||||||||||
| Loans, including fees | $ | 15,492 | $ | 14,260 | $ | 12,527 | $ | 11,205 | $ | 10,010 | ||||||
| Securities | 2,647 | 2,368 | 2,283 | 2,291 | 2,258 | |||||||||||
| Other | 24 | 30 | 27 | 28 | 25 | |||||||||||
| Total interest income | 18,163 | 16,658 | 14,837 | 13,524 | 12,293 | |||||||||||
| Interest expense | ||||||||||||||||
| Deposits | 5,153 | 4,450 | 3,509 | 2,926 | 2,517 | |||||||||||
| Borrowings | 4,379 | 3,971 | 3,518 | 2,994 | 2,621 | |||||||||||
| Total interest expense | 9,532 | 8,421 | 7,027 | 5,920 | 5,138 | |||||||||||
| Net interest income | 8,631 | 8,237 | 7,810 | 7,604 | 7,155 | |||||||||||
| Provision for loan losses | 395 | 300 | 424 | 425 | 330 | |||||||||||
| Net interest income after provision | ||||||||||||||||
| for loan losses | 8,236 | 7,937 | 7,386 | 7,179 | 6,825 | |||||||||||
| Noninterest income | ||||||||||||||||
| Insurance commissions | 230 | 247 | 222 | 235 | 148 | |||||||||||
| Service fee income | 631 | 680 | 711 | 651 | 547 | |||||||||||
| Mortgage origination revenue | 6,584 | 6,098 | 7,304 | 7,113 | 5,856 | |||||||||||
| Securities gains (losses) | - | (1,434 | ) | 39 | 5 | - | ||||||||||
| Other income | 142 | (65 | ) | 189 | 211 | 116 | ||||||||||
| Total noninterest income | 7,587 | 5,526 | 8,465 | 8,215 | 6,667 | |||||||||||
| Noninterest expense | ||||||||||||||||
| Salaries and employee benefits | 5,158 | 4,944 | 5,435 | 5,394 | 4,542 | |||||||||||
| Net occupancy expense | 571 | 510 | 479 | 463 | 429 | |||||||||||
| Equipment expense | 520 | 470 | 465 | 483 | 493 | |||||||||||
| Postage expense | 1,791 | 1,387 | 1,451 | 1,458 | 1,567 | |||||||||||
| Advertising | 1,339 | 1,168 | 1,164 | 1,222 | 1,325 | |||||||||||
| Other expenses | 2,139 | 1,960 | 1,884 | 1,855 | 1,699 | |||||||||||
| Total noninterest expense | 11,518 | 10,439 | 10,878 | 10,875 | 10,055 | |||||||||||
| Income before income taxes | 4,305 | 3,024 | 4,973 | 4,519 | 3,437 | |||||||||||
| Income taxes | 1,334 | 582 | 1,700 | 1,403 | 1,026 | |||||||||||
| Net income | $ | 2,971 | $ | 2,442 | $ | 3,273 | $ | 3,116 | $ | 2,411 | ||||||
Per Share Data | ||||||||||||||||
| Basic earnings | $ | 0.42 | $ | 0.34 | $ | 0.46 | $ | 0.44 | $ | 0.34 | ||||||
| Diluted earnings | $ | 0.41 | $ | 0.34 | $ | 0.45 | $ | 0.43 | $ | 0.34 | ||||||
| Average shares outstanding | ||||||||||||||||
| Basic | 7,128,076 | 7,125,994 | 7,125,483 | 7,081,044 | 7,039,783 | |||||||||||
| Diluted | 7,192,924 | 7,198,068 | 7,211,331 | 7,205,377 | 7,171,099 | |||||||||||
Performance Ratios | ||||||||||||||||
| Return on average equity | 15.60 | % | 13.15 | % | 18.24 | % | 18.21 | % | 14.53 | % | ||||||
| Return on average assets | 1.05 | % | 0.92 | % | 1.33 | % | 1.34 | % | 1.08 | % | ||||||
| Net interest margin - taxable equivalent | 3.39 | % | 3.39 | % | 3.47 | % | 3.61 | % | 3.59 | % | ||||||
| Efficiency ratio consolidated (A) | 69.16 | % | 65.50 | % | 65.40 | % | 66.98 | % | 70.26 | % | ||||||
| Efficiency ratio excluding mortgage banking (A) | 53.76 | % | 50.73 | % | 53.75 | % | 54.15 | % | 52.90 | % | ||||||
NOTE: (A) - Computed on a tax equivalent basis excluding nonrecurring income and expense items and amortization of intangibles.
SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF) | ||||||||||||||||
Segment Information | ||||||||||||||||
For the Quarter Ended March 31, 2006 | ||||||||||||||||
Community | Mortgage | Parent | ||||||||||||||
Dollars in thousands | Banking | Banking | and Other | Eliminations | Total | |||||||||||
Condensed Statements of Income | ||||||||||||||||
| Interest income | $ | 17,900 | $ | 562 | $ | 12 | $ | (311 | ) | $ | 18,163 | |||||
| Interest expense | 9,163 | 311 | 369 | (311 | ) | 9,532 | ||||||||||
| Net interest income | 8,737 | 251 | (357 | ) | - | 8,631 | ||||||||||
| Provision for loan losses | 325 | 70 | - | - | 395 | |||||||||||
| Net interest income after provision | ||||||||||||||||
| for loan losses | 8,412 | 181 | (357 | ) | - | 8,236 | ||||||||||
| Noninterest income | 810 | 6,584 | 1,690 | (1,497 | ) | 7,587 | ||||||||||
| Noninterest expense | 4,992 | 6,232 | 1,791 | (1,497 | ) | 11,518 | ||||||||||
| Income before income taxes | 4,230 | 533 | (458 | ) | - | 4,305 | ||||||||||
| Income taxes | 1,315 | 200 | (181 | ) | - | 1,334 | ||||||||||
| Net income | $ | 2,915 | $ | 333 | $ | (277 | ) | $ | - | $ | 2,971 | |||||
Intersegment revenue (expense) | $ | (1,104 | ) | $ | (385 | ) | $ | 1,489 | $ | - | $ | - | ||||
Average assets | $ | 1,116,002 | $ | 22,598 | $ | 97,819 | $ | (109,706 | ) | $ | 1,126,713 | |||||
SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF) | ||||||||||||||||
Segment Information | ||||||||||||||||
For the Quarter Ended March 31, 2005 | ||||||||||||||||
Community | Mortgage | Parent | ||||||||||||||
Dollars in thousands | Banking | Banking | and Other | Eliminations | Total | |||||||||||
Condensed Statements of Income | ||||||||||||||||
| Interest income | $ | 12,204 | $ | 302 | $ | 7 | $ | (220 | ) | $ | 12,293 | |||||
| Interest expense | 4,971 | 218 | 169 | (220 | ) | 5,138 | ||||||||||
| Net interest income | 7,233 | 84 | (162 | ) | - | 7,155 | ||||||||||
| Provision for loan losses | 330 | - | - | - | 330 | |||||||||||
| Net interest income after provision | ||||||||||||||||
| for loan losses | 6,903 | 84 | (162 | ) | - | 6,825 | ||||||||||
| Noninterest income | 689 | 5,856 | 1,298 | (1,176 | ) | 6,667 | ||||||||||
| Noninterest expense | 4,198 | 5,597 | 1,436 | (1,176 | ) | 10,055 | ||||||||||
| Income before income taxes | 3,394 | 343 | (300 | ) | - | 3,437 | ||||||||||
| Income taxes | 1,029 | 117 | (120 | ) | - | 1,026 | ||||||||||
| Net income | $ | 2,365 | $ | 226 | $ | (180 | ) | $ | - | $ | 2,411 | |||||
Intersegment revenue (expense) | $ | (906 | ) | $ | (263 | ) | $ | 1,169 | $ | - | $ | - | ||||
Average assets | $ | 883,731 | $ | 19,386 | $ | 78,885 | $ | (89,841 | ) | $ | 892,161 | |||||
SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF) | ||||||||||||||||
Selected Balance Sheet Data | ||||||||||||||||
For the Quarter Ended | ||||||||||||||||
Dollars in thousands, except per share amounts | 3/31/2006 | 12/31/2005 | 9/30/2005 | 6/30/2005 | 3/31/2005 | |||||||||||
| Assets | $ | 1,137,692 | $ | 1,109,532 | $ | 1,029,103 | $ | 946,487 | $ | 907,264 | ||||||
| Securities | 233,805 | 223,772 | 215,757 | 209,561 | 209,223 | |||||||||||
| Loans held for sale, net | 12,343 | 16,585 | 12,695 | 16,994 | 15,766 | |||||||||||
| Loans, net | 825,022 | 793,767 | 729,431 | 659,792 | 623,863 | |||||||||||
| Intangible assets | 3,310 | 3,348 | 3,385 | 3,423 | 3,461 | |||||||||||
| Retail deposits | 560,551 | 545,104 | 521,503 | 487,885 | 482,696 | |||||||||||
| Brokered time deposits | 170,185 | 128,797 | 107,416 | 77,282 | 54,716 | |||||||||||
| Short-term borrowings | 136,483 | 182,028 | 139,681 | 127,974 | 129,697 | |||||||||||
| Long-term borrowings and | ||||||||||||||||
| subordinated debentures | 183,136 | 170,501 | 179,383 | 176,796 | 165,384 | |||||||||||
| Shareholders' equity | 75,816 | 73,803 | 72,429 | 69,838 | 66,400 | |||||||||||
| Book value per share | $ | 10.63 | $ | 10.36 | $ | 10.16 | $ | 9.80 | $ | 9.43 | ||||||
Loan Composition | ||||||||||||||||
Dollars in thousands | 3/31/2006 | 12/31/2005 | 9/30/2005 | 6/30/2005 | 3/31/2005 | |||||||||||
| Commercial | $ | 66,564 | $ | 63,206 | $ | 60,723 | $ | 59,067 | $ | 56,394 | ||||||
| Commercial real estate | 275,896 | 266,228 | * | * | * | |||||||||||
| Construction and development | 165,026 | 141,207 | * | * | * | |||||||||||
| Residential real estate | 282,013 | 285,597 | * | * | * | |||||||||||
| Consumer | 37,357 | 36,863 | 37,431 | 36,993 | 37,066 | |||||||||||
| Other | 6,382 | 8,598 | 8,824 | 9,233 | 7,458 | |||||||||||
| Total loans | 833,238 | 801,699 | 736,992 | 666,948 | 630,501 | |||||||||||
| Less unearned fees and interest | 1,731 | 1,780 | 1,640 | 1,459 | 1,322 | |||||||||||
| Total loans net of unearned fees and interest | 831,507 | 799,919 | 735,352 | 665,489 | 629,179 | |||||||||||
| Less allowance for loan losses | 6,485 | 6,152 | 5,921 | 5,697 | 5,316 | |||||||||||
| Loans, net | $ | 825,022 | $ | 793,767 | $ | 729,431 | $ | 659,792 | $ | 623,863 | ||||||
* - Due to reclassification of real estate loans to include construction and development category, real estate loan balances prior to 12/31/05 conforming to the new classifications is not available.
SUMMIT FINANCIAL GROUP INC. (NASDAQ: SMMF) | ||||||||||||||||
Retail Deposit Composition | ||||||||||||||||
Dollars in thousands | 3/31/2006 | 12/31/2005 | 9/30/2005 | 6/30/2005 | 3/31/2005 | |||||||||||
| Non interest bearing checking | $ | 62,860 | $ | 62,631 | $ | 69,346 | $ | 63,207 | $ | 57,008 | ||||||
| Interest bearing checking | 214,572 | 200,638 | 169,893 | 145,626 | 134,500 | |||||||||||
| Savings | 39,474 | 44,681 | 45,868 | 47,407 | 50,647 | |||||||||||
| Time deposits | 243,645 | 237,154 | 236,396 | 231,645 | 240,541 | |||||||||||
| Total retail deposits | $ | 560,551 | $ | 545,104 | $ | 521,503 | $ | 487,885 | $ | 482,696 | ||||||
SUMMIT FINANCIAL GROUP INC. (NASDAQ: SMMF) | ||||||||||||||||
Mortgage Banking Segment Loan Activity | ||||||||||||||||
For the Quarter Ended | ||||||||||||||||
Dollars in thousands | 3/31/2006 | 12/31/2005 | 9/30/2005 | 6/30/2005 | 3/31/2005 | |||||||||||
Loans originated | ||||||||||||||||
| Amount | $ | 72,967 | $ | 78,297 | $ | 83,860 | $ | 83,616 | $ | 68,929 | ||||||
| Number | 1,386 | 1,443 | 1,567 | 1,578 | 1,308 | |||||||||||
Loans sold | ||||||||||||||||
| Amount | $ | 76,375 | $ | 73,903 | $ | 87,071 | $ | 81,422 | $ | 66,761 | ||||||
| Number | 1,421 | 1,376 | 1,566 | 1,549 | 1,295 | |||||||||||
SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF) | ||||||||||||||||
Asset Quality Information | ||||||||||||||||
For the Quarter Ended | ||||||||||||||||
Dollars in thousands | 3/31/2006 | 12/31/2005 | 9/30/2005 | 6/30/2005 | 3/31/2005 | |||||||||||
| Net loan charge-off's | $ | 62 | $ | 70 | $ | 200 | $ | 44 | $ | 87 | ||||||
| Net loan charge-off's to average loans (annualized) | 0.03 | % | 0.04 | % | 0.11 | % | 0.03 | % | 0.05 | % | ||||||
| Allowance for loan losses | $ | 6,485 | $ | 6,152 | $ | 5,921 | $ | 5,697 | $ | 5,316 | ||||||
| Allowance for loan losses as a percentage | ||||||||||||||||
| of period end loans | 0.77 | % | 0.75 | % | 0.79 | % | 0.83 | % | 0.82 | % | ||||||
| Nonperforming assets: | ||||||||||||||||
| Nonperforming loans | $ | 1,972 | $ | 1,382 | $ | 1,017 | $ | 911 | $ | 836 | ||||||
| Foreclosed properties and | ||||||||||||||||
| other repossessed assets | 346 | 395 | 862 | 949 | 608 | |||||||||||
| Nonaccrual securities | - | - | - | 326 | 334 | |||||||||||
| Total | $ | 2,318 | $ | 1,777 | $ | 1,879 | $ | 2,186 | $ | 1,778 | ||||||
| Nonperforming loans to period end loans | 0.23 | % | 0.17 | % | 0.14 | % | 0.13 | % | 0.13 | % | ||||||
| Nonperforming assets to period end assets | 0.20 | % | 0.16 | % | 0.18 | % | 0.23 | % | 0.20 | % | ||||||
SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF) | |||||||||||||||||||
Average Balance Sheet, Interest Earnings & Expenses and Average Rates | |||||||||||||||||||
Q1 2006 vs Q1 2005 | |||||||||||||||||||
Q1 2006 | Q1 2005 | ||||||||||||||||||
Average | Earnings / | Yield / | Average | Earnings / | Yield / | ||||||||||||||
Dollars in thousands | Balances | Expense | Rate | Balances | Expense | Rate | |||||||||||||
ASSETS | |||||||||||||||||||
| Interest earning assets | |||||||||||||||||||
| Loans, net of unearned interest | |||||||||||||||||||
| Taxable | $ | 829,381 | $ | 15,392 | 7.53 | % | $ | 623,652 | $ | 9,901 | 6.44 | % | |||||||
| Tax-exempt | 8,244 | 150 | 7.38 | % | 9,108 | 164 | 7.30 | % | |||||||||||
| Securities | |||||||||||||||||||
| Taxable | 186,586 | 2,135 | 4.64 | % | 162,314 | 1,730 | 4.32 | % | |||||||||||
| Tax-exempt | 44,077 | 767 | 7.06 | % | 47,876 | 794 | 6.73 | % | |||||||||||
| Interest bearing deposits other banks | |||||||||||||||||||
| and Federal funds sold | 2,294 | 24 | 4.24 | % | 2,717 | 25 | 3.73 | % | |||||||||||
| Total interest earning assets | 1,070,582 | 18,468 | 7.00 | % | 845,667 | 12,614 | 6.05 | % | |||||||||||
| Noninterest earning assets | |||||||||||||||||||
| Cash & due from banks | 14,449 | 14,513 | |||||||||||||||||
| Premises & equipment | 23,361 | 20,740 | |||||||||||||||||
| Other assets | 24,659 | 16,442 | |||||||||||||||||
| Allowance for loan losses | (6,338 | ) | (5,201 | ) | |||||||||||||||
Total assets | $ | 1,126,713 | $ | 892,161 | |||||||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||||||||||
| Liabilities | |||||||||||||||||||
| Interest bearing liabilities | |||||||||||||||||||
| Interest bearing | |||||||||||||||||||
| demand deposits | $ | 204,161 | $ | 1,543 | 3.07 | % | $ | 127,994 | $ | 425 | 1.35 | % | |||||||
| Savings deposits | 43,067 | 73 | 0.69 | % | 50,727 | 79 | 0.63 | % | |||||||||||
| Time deposits | 374,170 | 3,537 | 3.83 | % | 298,514 | 2,013 | 2.73 | % | |||||||||||
| Short-term borrowings | 172,380 | 1,964 | 4.62 | % | 116,898 | 754 | 2.62 | % | |||||||||||
| Long-term borrowings and | |||||||||||||||||||
| subordinated debentures | 184,051 | 2,415 | 5.32 | % | 170,203 | 1,867 | 4.45 | % | |||||||||||
| 977,829 | 9,532 | 3.95 | % | 764,336 | 5,138 | 2.73 | % | ||||||||||||
| Noninterest bearing liabilities | |||||||||||||||||||
| Demand deposits | 63,308 | 56,130 | |||||||||||||||||
| Other liabilities | 9,395 | 5,316 | |||||||||||||||||
| Total liabilities | 1,050,532 | 825,782 | |||||||||||||||||
| Shareholders' equity | 76,181 | 66,379 | |||||||||||||||||
| Total liabilities and | |||||||||||||||||||
| shareholders' equity | $ | 1,126,713 | $ | 892,161 | |||||||||||||||
NET INTEREST EARNINGS | $ | 8,936 | $ | 7,476 | |||||||||||||||
NET INTEREST MARGIN | 3.39 | % | 3.59 | % | |||||||||||||||