Summit Financial (SMMF) 8-K Summit Financial Group Reports First Quarter 2007 Earnings

Exhibit 99

FOR RELEASE 6:00 AM EDT, THURSDAY, APRIL 19, 2007

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

Telephone:      (304) 530-0552

Email:               rtissue@SummitFGI.com

SUMMIT FINANCIAL GROUP REPORTS FIRST QUARTER 2007 EARNINGS

EPS from Continuing Operations Grows 8.3 Percent

MOOREFIELD, WV--April 19, 2007--Summit Financial Group, Inc. (Nasdaq: SMMF) today reported the first quarter 2007 results of its consolidated operations and its continuing operations which excludes from income substantially all business activities of Summit Mortgage, its residential mortgage loan origination unit, which ceased operations in January 2007.

Income from continuing operations for the first quarter of 2007 was $2.8 million, or $0.39 per diluted share, up 8.0 percent and 8.3 percent, respectively, compared with $2.6 million, or $0.36 per diluted share, reported for the prior-year period. Consolidated net income was $2.6 million, or $0.36 per diluted share, compared with $3.0 million, or $0.41 per diluted share reported for the first quarter of 2006. First quarter 2007 results reflect solid asset growth and well-controlled expenses. For the first quarter of 2007, the returns on average shareholders' equity and average assets from continuing operations were 13.67 percent and 0.90 percent, respectively, compared with prior-year ratios of 13.59 percent and 0.92 percent.

H. Charles Maddy, III, President and Chief Executive Officer, commented, “The first quarter of 2007 marks a return to our focus on community banking. We look forward to concentrating our energies and our capital to expand market share in some of the best markets in the country. These markets continue to provide us with excellent opportunities for loan and deposit growth, including the new markets in Northern Virginia and Montgomery County, Maryland that we plan to enter when we complete our acquisition of Greater Atlantic Financial Corp. in the fourth quarter of this year. After we close this acquisition, 50 percent of our assets will be located in high-growth Virginia and Maryland markets.”

For the first quarter of 2007, total revenue increased 7.0 percent to $10.0 million compared with $9.4 million for the year-earlier quarter. Net interest income was $9.0 million compared with $8.4 million in the prior-year first quarter, an increase of 7.7 percent. The increase reflected 11.5 percent growth in average earning assets, partially offset by a 19 basis point decline in the net interest margin to 3.20 percent. Non-interest income, which consists primarily of insurance commissions and service fees, was $1.0 million for the current quarter, and was basically unchanged at that level for the four preceding quarters.

Non-interest expense has remained relatively stable over the past four quarters as well; revenue growth has slightly outpaced growth in operating expenses. Non-interest expense for the quarter was $5.6 million compared with $5.4 million for the prior year first quarter, up 5.4 percent. The efficiency ratio (for continuing operations) was 53.86 percent compared with 54.72 percent for the prior-year quarter.

Asset quality remains sound overall. Nonperforming loans increased by $3.9 million during the fourth quarter of 2006, primarily from one single customer relationship. However, the loan is well-collateralized, and adequate reserves are in place. At March 31, 2007, nonperforming assets totaled $4.5 million, or 0.36 percent of assets, compared with $5.4 million, or 0.43 percent at 2006 year-end, and $1.7 million, or 0.15 percent for the year-ago quarter. Net charge-offs have traditionally been low. For the current quarter, the Company had net charge-offs of $119,000, or 0.05 percent of average loans annualized, compared with $263,000, or 0.11 percent annualized for the linked quarter, and virtually zero for the year earlier period. At March 31, 2007, the allowance for loan losses was 0.83 percent of loans outstanding.

Assets at March 31, 2007 were $1.25 billion, an increase of $116.2 million, or 10.2 percent over the last twelve months. Loans, net of unearned income, were $938.6 million at period end, up $107.8 million or 13.0 percent year-over-year. Commercial real estate and construction/development were the largest contributors to loan growth, up $53.7 million (19.5 percent) and $55.4 million (33.6 percent), respectively, since March 31, 2006. Together, these two categories comprise 58.5 percent of the loan portfolio, with residential mortgages accounting for an additional 29.7 percent.

Deposits at March 31, 2007 were $877.2 million, an increase of $146.5 million, or 20.0 percent above prior year-end levels. Retail deposits accounted for $623.4 million of the total, growing $62.9 million or 11.2 percent from year-ago levels. Brokered deposits increased $83.6 million, or 49.1 percent, compared to the prior year, ending the quarter at $253.8 million.

Shareholders' equity at March 31, 2007 was $82.9 million, an increase of 9.4 percent over the last twelve months. Common shares outstanding totaled 7,084,980 at quarter-end.

ABOUT THE COMPANY

Summit Financial Group, Inc., a financial holding company with total assets of $1.25 billion, operates fifteen 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 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 2007 vs Q1 2006
	For the Quarter Ended					Percent
Dollars in thousands	3/31/2007			3/31/2006		Change
Condensed Statements of Income
Interest income
Loans, including fees	$	18,712		$	15,240		22.8	%
Securities		3,124			2,647		18.0	%
Other		6			24		-75.0	%
Total interest income		21,842			17,911		21.9	%
Interest expense
Deposits		9,028			5,153		75.2	%
Borrowings		3,790			4,379		-13.5	%
Total interest expense		12,818			9,532		34.5	%
Net interest income		9,024			8,379		7.7	%
Provision for loan losses		390			325		20.0	%
Net interest income after provision
for loan losses		8,634			8,054		7.2	%
Noninterest income
Insurance commissions		206			230		-10.4	%
Service fee income		617			631		-2.2	%
Securities gains (losses)		-			-		-
Other income		189			142		33.1	%
Total noninterest income		1,012			1,003		0.9	%
Noninterest expense
Salaries and employee benefits		3,226			3,055		5.6	%
Net occupancy expense		418			401		4.2	%
Equipment expense		446			450		-0.9	%
Professional fees		174			207		-15.9	%
Other expenses		1,385			1,248		11.0	%
Total noninterest expense		5,649			5,361		5.4	%
Income from continuing operations before income taxes		3,997			3,696		8.1	%
Income taxes		1,201			1,108		8.4	%
Income from continuing operations		2,796			2,588		8.0	%
Discontinued operations
Exit costs and impairment of long-lived assets		80			-		n/a
Operating income (loss)		(372	)		609		-161.1	%
Income (loss) from discontinued operations
before income taxes		(292	)		609		-147.9	%
Income taxes		(97	)		226		-142.9	%
Income (loss) from discontinued operations		(195	)		383		-150.9	%
Net Income	$	2,601		$	2,971		-12.5	%

SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF)
Quarterly Performance Summary -- Q1 2007 vs Q1 2006
	For the Quarter Ended						Percent
	3/31/2007			3/31/2006			Change
Per Share Data
Earnings per share from continuing operations
Basic	$	0.40		$	0.36			11.1	%
Diluted	$	0.39		$	0.36			8.3	%
Earnings per share from discontinued operations
Basic	$	(0.03	)	$	0.06			-150.0	%
Diluted	$	(0.03	)	$	0.05			-160.0	%
Earnings per share
Basic	$	0.37		$	0.42			-11.9	%
Diluted	$	0.36		$	0.41			-12.2	%
Average shares outstanding
Basic		7,084,980			7,128,076			-0.6	%
Diluted		7,147,170			7,189,063			-0.6	%
Performance Ratios
Return on average equity		12.72	%		15.60	%		-18.5	%
Return on average equity - continuing operations		13.67	%		13.59	%		0.6	%
Return on average assets		0.83	%		1.05	%		-21.0	%
Return on average assets - continuing operations		0.90	%		0.92	%		-2.2	%
Net interest margin		3.20	%		3.39	%		-5.6	%
Efficiency ratio (A)		58.07	%		69.29	%		-16.2	%
Efficiency ratio - continuing operations (A)		53.86	%		54.72	%		-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	3/31/2007			12/31/2006			9/30/2006			6/30/2006		3/31/2006
Condensed Statements of Income
Interest income
Loans, including fees	$	18,712		$	18,746		$	18,060		$	16,609	$	15,240
Securities		3,124			3,131			2,998			2,787		2,647
Other		6			7			16			13		24
Total interest income		21,842			21,884			21,074			19,409		17,911
Interest expense
Deposits		9,028			8,990			7,761			6,408		5,153
Borrowings		3,790			3,705			4,239			4,348		4,379
Total interest expense		12,818			12,695			12,000			10,756		9,532
Net interest income		9,024			9,189			9,074			8,653		8,379
Provision for loan losses		390			930			260			330		325
Net interest income after provision
for loan losses		8,634			8,259			8,814			8,323		8,054
Noninterest income
Insurance commissions		206			228			219			247		230
Service fee income		617			702			700			726		631
Securities gains (losses)		-			-			-			-		-
Other income		189			162			131			136		142
Total noninterest income		1,012			1,092			1,050			1,109		1,003
Noninterest expense
Salaries and employee benefits		3,226			2,899			2,817			3,049		3,055
Net occupancy expense		418			378			387			390		401
Equipment expense		446			480			476			496		450
Professional fees		174			252			188			245		207
Other expenses		1,385			1,291			1,409			1,492		1,248
Total noninterest expense		5,649			5,300			5,277			5,672		5,361
Income before income taxes		3,997			4,051			4,587			3,760		3,696
Income taxes		1,201			1,328			1,421			1,167		1,108
Income from continuing operations		2,796			2,723			3,166			2,593		2,588
Discontinued operations
Exit costs and impairment of long-lived assets		80			(2,480	)		-			-		-
Operating income (loss)		(372	)		(1,373	)		(1,059	)		74		609
Income (loss) from discontinued operations
before income taxes		(292	)		(3,853	)		(1,059	)		74		609
Income taxes		(97	)		(1,311	)		(374	)		33		226
Income (loss) from discontinued operations		(195	)		(2,542	)		(685	)		41		383
Net Income	$	2,601		$	181		$	2,481		$	2,634	$	2,971

SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF)
Five Quarter Performance Summary
	For the Quarter Ended
	3/31/2007			12/31/2006			9/30/2006			6/30/2006			3/31/2006
Per Share Data
Earnings per share from continuing operations
Basic	$	0.40		$	0.39		$	0.45		$	0.36		$	0.36
Diluted	$	0.39		$	0.39		$	0.45		$	0.36		$	0.36
Earnings per share from discontinued operations
Basic	$	(0.03	)	$	(0.36	)	$	(0.10	)	$	0.01		$	0.06
Diluted	$	(0.03	)	$	(0.36	)	$	(0.10	)	$	0.01		$	0.05
Earnings per share
Basic	$	0.37		$	0.03		$	0.35		$	0.37		$	0.42
Diluted	$	0.36		$	0.03		$	0.35		$	0.37		$	0.41
Average shares outstanding
Basic		7,084,980			7,092,531			7,127,650			7,135,107			7,128,076
Diluted		7,147,170			7,151,378			7,187,274			7,193,407			7,189,063
Performance Ratios
Return on average equity		12.72	%		0.88	%		12.46	%		13.53	%		15.60	%
Return on average equity - continuing operations		13.67	%		13.24	%		15.90	%		13.32	%		13.59	%
Return on average assets		0.83	%		0.06	%		0.83	%		0.91	%		1.05	%
Return on average assets - continuing operations		0.90	%		0.89	%		1.06	%		0.89	%		0.92	%
Net interest margin		3.20	%		3.25	%		3.33	%		3.32	%		3.39	%
Efficiency ratio (A)		58.07	%		69.20	%		70.57	%		70.69	%		69.29	%
Efficiency ratio - continuing operations (A)		53.86	%		48.85	%		49.38	%		54.33	%		54.72	%

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

SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF)
Selected Balance Sheet Data
	For the Quarter Ended
Dollars in thousands, except per share amounts	3/31/2007		12/31/2006		9/30/2006		6/30/2006		3/31/2006
Assets	$	1,253,925	$	1,234,831	$	1,210,491	$	1,179,648	$	1,137,692
Securities		258,173		247,874		246,332		238,382		233,805
Loans, net		930,769		916,045		894,836		866,170		824,359
Intangible assets		3,159		3,197		3,234		3,272		3,310
Assets related to discontinued operations		2,170		9,715		8,369		11,633		14,577
Retail deposits		623,431		609,064		598,293		570,731		560,551
Brokered time deposits		253,794		279,623		266,769		190,832		170,185
Short-term borrowings		79,886		60,428		90,422		164,185		136,483
Long-term borrowings and
subordinated debentures		201,814		193,881		163,864		167,168		183,136
Shareholders' equity		82,935		79,875		80,630		76,559		75,816
Book value per share	$	11.71	$	11.27	$	11.35	$	10.73	$	10.63

SUMMIT FINANCIAL GROUP INC. (NASDAQ: SMMF)
Loan Composition
Dollars in thousands	3/31/2007		12/31/2006		9/30/2006		6/30/2006		3/31/2006
Commercial	$	69,700	$	69,470	$	67,352	$	64,342	$	66,564
Commercial real estate		329,561		314,199		300,676		296,680		275,896
Construction and development		220,430		215,820		207,545		182,000		165,026
Residential real estate		279,564		282,512		283,943		288,316		281,301
Consumer		33,845		36,455		36,885		37,040		37,356
Other		7,209		6,968		7,086		6,188		6,382
Total loans		940,309		925,424		903,487		874,566		832,525
Less unearned fees and interest		1,757		1,868		1,806		1,767		1,731
Total loans net of unearned fees and interest		938,552		923,556		901,681		872,799		830,794
Less allowance for loan losses		7,783		7,511		6,845		6,629		6,435
Loans, net	$	930,769	$	916,045	$	894,836	$	866,170	$	824,359

SUMMIT FINANCIAL GROUP INC. (NASDAQ: SMMF)
Retail Deposit Composition
Dollars in thousands	3/31/2007		12/31/2006		9/30/2006		6/30/2006		3/31/2006
Non interest bearing checking	$	60,645	$	62,591	$	64,751	$	66,071	$	62,860
Interest bearing checking		230,634		220,167		223,992		214,279		214,572
Savings		44,713		47,984		44,980		38,737		39,474
Time deposits		287,439		278,322		264,570		251,644		243,645
Total retail deposits	$	623,431	$	609,064	$	598,293	$	570,731	$	560,551

SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF)
Asset Quality Information - Continuing Operations
	For the Quarter Ended
Dollars in thousands	3/31/2007			12/31/2006			9/30/2006			6/30/2006			3/31/2006
Net loan charge-off's	$	119		$	263		$	45		$	135		$	2
Net loan charge-off's to average loans (annualized)		0.05	%		0.11	%		0.02	%		0.06	%		0.00	%
Allowance for loan losses	$	7,783		$	7,511		$	6,845		$	6,629		$	6,435
Allowance for loan losses as a percentage
of period end loans		0.83	%		0.81	%		0.76	%		0.76	%		0.77	%
Nonperforming assets:
Nonperforming loans	$	4,474		$	5,276		$	1,273		$	987		$	1,447
Foreclosed properties and
other repossessed assets		43			77			180			298			271
Total	$	4,517		$	5,353		$	1,453		$	1,285		$	1,718
Nonperforming loans to period end loans		0.48	%		0.57	%		0.14	%		0.11	%		0.17	%
Nonperforming assets to period end assets		0.36	%		0.43	%		0.12	%		0.11	%		0.15	%

SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF)
Consolidated Average Balance Sheet, Interest Earnings & Expenses and Average Rates
Q1 2007 vs Q1 2006
	Q1 2007								Q1 2006
	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	$	928,979		$	18,665		8.15	%	$	829,381		$	15,392		7.53	%
Tax-exempt		8,917			173		7.87	%		8,244			150		7.38	%
Securities
Taxable		208,315			2,577		5.02	%		186,586			2,135		4.64	%
Tax-exempt		47,289			814		6.98	%		44,077			767		7.06	%
Interest bearing deposits other banks
and Federal funds sold		446			5		4.55	%		2,294			24		4.24	%
Total interest earning assets		1,193,946			22,234		7.55	%		1,070,582			18,468		7.00	%
Noninterest earning assets
Cash & due from banks		13,099								14,449
Premises & equipment		22,332								23,361
Other assets		26,993								24,659
Allowance for loan losses		(8,135	)							(6,338	)
Total assets	$	1,248,235							$	1,126,713
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Interest bearing liabilities
Interest bearing
demand deposits	$	221,924		$	2,067		3.78	%	$	204,161		$	1,543		3.07	%
Savings deposits		46,407			217		1.90	%		43,067			73		0.69	%
Time deposits		556,525			6,745		4.92	%		374,170			3,537		3.83	%
Short-term borrowings		72,415			956		5.35	%		172,380			1,964		4.62	%
Long-term borrowings and
subordinated debentures		196,005			2,832		5.86	%		184,051			2,415		5.32	%
		1,093,276			12,817		4.75	%		977,829			9,532		3.95	%
Noninterest bearing liabilities
Demand deposits		61,288								63,308
Other liabilities		11,881								9,395
Total liabilities		1,166,445								1,050,532
Shareholders' equity		81,790								76,181
Total liabilities and
shareholders' equity	$	1,248,235							$	1,126,713
NET INTEREST EARNINGS				$	9,417							$	8,936
NET INTEREST MARGIN							3.20	%							3.39	%