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

Exhibit 99

FOR RELEASE 6:00 PM EDT, THURSDAY, JULY 26, 2007

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

Telephone:           (304) 530-0552

Email:                    rtissue@SummitFGI.com

SUMMIT FINANCIAL GROUP REPORTS SECOND QUARTER 2007 EARNINGS

EPS from Continuing Operations Grows 22.2 Percent

MOOREFIELD, W.Va.--July 26, 2007--Summit Financial Group, Inc. (NASDAQ: SMMF) today reported second quarter 2007 net income 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 second quarter 2007 was $3.2 million, or $0.44 per diluted share, up 21.6 percent and 22.2 percent, respectively, compared with $2.6 million, or $0.36 per diluted share, reported for the prior-year period.  Consolidated net income was $3.0 million, or $0.42 per diluted share, compared with $2.6 million, or $0.37 per diluted share reported for the second quarter of 2006.  Second quarter 2007 results reflect solid asset growth, stable operating expenses, and a slight improvement in the net interest margin.  For the second quarter of 2007, the returns on average shareholders' equity and average assets from continuing operations were 14.96 percent and 1.00 percent, respectively, compared with prior-year ratios of 13.32 percent and 0.89 percent.

For the six months ended June 30, 2007, income from continuing operations was $5.9 million, or $0.83 per diluted share, up 14.8 percent and 15.3 percent, respectively, compared with $5.2 million, or $0.72 per diluted share, reported for the prior-year period. Consolidated net income for the first half of 2007 was $5.6 million, or $0.79 per diluted share, compared with $5.6 million, or $0.78 per diluted share reported for the 2006 six-month period.  For the first six months of 2007, the returns on average shareholders' equity and average assets from continuing operations were 14.28 percent and 0.95 percent, respectively, compared with prior-year ratios of 13.60 percent and 0.91 percent.

H. Charles Maddy, III, president and chief executive officer, commented, “Second quarter results demonstrate the strength of our community banking franchise.  Our success in maintaining loan growth despite a slowdown in construction and development lending shows our ability to react to market dynamics, as reflected in our higher levels of commercial and commercial real estate loans this quarter.  Further, our net interest margin and our return on equity (from continuing operations) have remained remarkably steady throughout this very challenging period.  We look forward to concentrating our energies and our capital to expand our market share in some of the best markets in the country, 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.”

For the second quarter of 2007, total revenue increased 7.6 percent to $10.5 million compared with $9.8 million for the year-earlier quarter.  Net interest income was $9.3 million compared with $8.7 million in the prior-year first quarter, an increase of 8.0 percent.  The increase reflected 9.5 percent growth in average earning assets, partially offset by a 10 basis point decline in the net interest margin to 3.22 percent.  Non-interest income, which consists of insurance commissions and service fees, was $1.2 million for the current quarter, an increase of $44,000 or 4.0 percent from the prior-year quarter. Non-interest income accounted for 11.0 percent of total revenue, in line with its contribution in previous quarters.

Summit’s operating expenses remain exceptionally well controlled; second quarter 2007 non-interest expense was $5.7 million, up a nominal 0.8 percent from the year-ago quarter, and up 1.2 percent from the prior quarter.  Reflecting the combination of growing revenue and stable expenses, the efficiency ratio (for continuing operations) improved to 51.47 percent compared with 54.33 percent for the prior-year quarter.

At June 30, 2007, nonperforming assets were $8.2 million, or 0.64 percent of total assets, compared with $4.5 million, or 0.36 percent for the linked quarter and $1.3 million, or 0.11 percent for the year-ago quarter.  Relationships with three developers comprise in excess of 50 percent of total nonperforming assets.  Each of these loans is well-collateralized and adequate reserves are in place.  For the current quarter, the Company had net charge-offs of $96,000, or an annualized 0.04 percent of average loans, compared with $119,000, or an annualized 0.05 percent for the linked quarter, and $135,000, or 0.06 percent annualized for the year earlier period. At June 30, 2007, loan loss reserves were 0.91 percent of loans outstanding.

Assets at June 30, 2007 were $1.28 billion, an increase of $100.1 million, or 8.5 percent over the last twelve months. Loans, net of unearned income, were $949.2 million at period end, up $83.0 million, or 9.6 percent, year-over-year.  Commercial real estate was the largest contributor to loan growth, up $58.2 million, or 19.6 percent over the past twelve months.  Commercial real estate remains the largest component of Summit’s loan portfolio at 37.0 percent of total loans, with residential mortgages accounting for an additional 29.6 percent.  Construction and development loans, the third largest component of the portfolio, increased $16.7 million year over year, but experienced a significant reduction from the first quarter of 2007, declining $21.7 million, or 9.8 percent.

Deposits at June 30, 2007 were $850.4 million, an increase of $88.8 million, or 11.7 percent from the $761.6 million reported for the prior-year quarter.  However, compared with the linked quarter, deposits decreased $26.8 million, or 3.1 percent, reflecting a $30.0 million reduction in brokered time deposits.  Retail deposits totaled $626.6 million at quarter end, and accounted for 73.7 percent of total deposits, with non-interest bearing deposits growing $3.7 million, or 6.1 percent, compared with the linked quarter.

Shareholders' equity at June 30, 2007 was $83.1 million, an increase of 8.5 percent over the last twelve months. Common shares outstanding totaled 7,084,980 at year-end.

ABOUT THE COMPANY

Summit Financial Group, Inc., a financial holding company with total assets of $1.28 billion, operates fifteen banking locations through its wholly-owned community bank, Summit Community Bank, headquartered in Moorefield, West Virginia. Summit also operates Summit Insurance Services, LLC headquartered 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 -- Q2 2007 vs Q2 2006

	For the Quarter Ended					Percent
Dollars in thousands	6/30/07			6/30/06		Change
Condensed Statements of Income
Interest income
Loans, including fees	$	19,079		$	16,609		14.9	%
Securities		3,263			2,787		17.1	%
Other		27			13		107.7	%
Total interest income		22,369			19,409		15.3	%
Interest expense
Deposits		8,882			6,408		38.6	%
Borrowings		4,140			4,348		-4.8	%
Total interest expense		13,022			10,756		21.1	%
Net interest income		9,347			8,653		8.0	%
Provision for loan losses		390			330		18.2	%
Net interest income after provision
for loan losses		8,957			8,323		7.6	%
Noninterest income
Insurance commissions		209			247		-15.4	%
Service fee income		735			726		1.2	%
Securities gains (losses)		-			-		-
Other income		209			136		53.7	%
Total noninterest income		1,153			1,109		4.0	%
Noninterest expense
Salaries and employee benefits		3,238			3,049		6.2	%
Net occupancy expense		408			390		4.6	%
Equipment expense		493			496		-0.6	%
Professional fees		193			245		-21.2	%
Other expenses		1,386			1,492		-7.1	%
Total noninterest expense		5,718			5,672		0.8	%
Income from continuing operations before income taxes		4,392			3,760		16.8	%
Income taxes		1,240			1,167		6.3	%
Income from continuing operations		3,152			2,593		21.6	%
Discontinued operations
Exit costs and impairment of long-lived assets		43			-		n/a
Operating income (loss)		(227	)		74		-406.8	%
Income (loss) from discontinued operations
before income taxes		(184	)		74		-348.6	%
Income taxes		(66	)		33		-300.0	%
Income (loss) from discontinued operations		(118	)		41		-387.8	%
Net Income	$	3,034		$	2,634		15.2	%

SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF)
Quarterly Performance Summary -- Q2 2007 vs Q2 2006
	For the Quarter Ended						Percent
	6/30/2007			6/30/2006			Change
Per Share Data
Earnings per share from continuing operations
Basic	$	0.45		$	0.36			25.0	%
Diluted	$	0.44		$	0.36			22.2	%
Earnings per share from discontinued operations
Basic	$	(0.02	)	$	0.01			-300.0	%
Diluted	$	(0.02	)	$	0.01			-300.0	%
Earnings per share
Basic	$	0.43		$	0.37			16.2	%
Diluted	$	0.42		$	0.37			13.5	%
Average shares outstanding
Basic		7,084,980			7,135,107			-0.7	%
Diluted		7,148,241			7,189,644			-0.6	%
Performance Ratios
Return on average equity		14.40	%		13.53	%		6.4	%
Return on average equity - continuing operations		14.96	%		13.32	%		12.3	%
Return on average assets		0.96	%		0.91	%		5.5	%
Return on average assets - continuing operations		1.00	%		0.89	%		12.4	%
Net interest margin		3.22	%		3.32	%		-3.0	%
Efficiency ratio (A)		53.71	%		70.69	%		-24.0	%
Efficiency ratio - continuing operations (A)		51.47	%		54.33	%		-5.3	%

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

SUMMIT FINANCIAL GROUP, INC. (NASDAQ:  SMMF)
Six Month Performance Summary -- 2007 vs 2006
	For the Six Months Ended					Percent
Dollars in thousands	6/30/2007			6/30/2006		Change
Condensed Statements of Income
Interest income
Loans, including fees	$	37,792		$	31,850		18.7	%
Securities		6,386			5,434		17.5	%
Other		34			36		-5.6	%
Total interest income		44,212			37,320		18.5	%
Interest expense
Deposits		17,910			11,561		54.9	%
Borrowings		7,931			8,727		-9.1	%
Total interest expense		25,841			20,288		27.4	%
Net interest income		18,371			17,032		7.9	%
Provision for loan losses		780			655		19.1	%
Net interest income after provision
for loan losses		17,591			16,377		7.4	%
Noninterest income
Insurance commissions		415			477		-13.0	%
Service fee income		1,353			1,356		-0.2	%
Securities gains (losses)		-			-		-
Other income		397			279		42.3	%
Total noninterest income		2,165			2,112		2.5	%
Noninterest expense
Salaries and employee benefits		6,463			6,104		5.9	%
Net occupancy expense		826			792		4.3	%
Equipment expense		940			946		-0.6	%
Professional fees		367			452		-18.8	%
Other expenses		2,772			2,739		1.2	%
Total noninterest expense		11,368			11,033		3.0	%
Income from continuing operations before income taxes		8,388			7,456		12.5	%
Income taxes		2,441			2,275		7.3	%
Income from continuing operations		5,947			5,181		14.8	%
Discontinued operations
Exit costs and impairment of long-lived assets		123			-		n/a
Operating income (loss)		(599	)		683		-187.7	%
Income (loss) from discontinued operations
before income taxes		(476	)		683		-169.7	%
Income taxes		(163	)		259		-162.9	%
Income (loss) from discontinued operations		(313	)		424		-173.8	%
Net Income	$	5,634		$	5,605		0.5	%

SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF)
Six Month Performance Summary -- 2007 vs 2006
	For the Six Months Ended						Percent
	6/30/2007			6/30/2006			Change
Per Share Data
Earnings per share from continuing operations
Basic	$	0.84		$	0.73			15.1	%
Diluted	$	0.83		$	0.72			15.3	%
Earnings per share from discontinued operations
Basic	$	(0.04	)	$	0.06			-166.7	%
Diluted	$	(0.04	)	$	0.06			-166.7	%
Earnings per share
Basic	$	0.80		$	0.79			1.3	%
Diluted	$	0.79		$	0.78			1.3	%
Average shares outstanding
Basic		7,084,980			7,131,611			-0.7	%
Diluted		7,147,784			7,189,383			-0.6	%
Performance Ratios
Return on average equity		13.53	%		14.53	%		-6.9	%
Return on average equity - continuing operations		14.28	%		13.60	%		5.0	%
Return on average assets		0.90	%		0.98	%		-8.2	%
Return on average assets - continuing operations		0.95	%		0.91	%		4.4	%
Net interest margin		3.21	%		3.35	%		-4.2	%
Efficiency ratio (A)		55.74	%		69.92	%		-20.3	%
Efficiency ratio - continuing operations (A)		52.46	%		54.05	%		-2.9	%

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	6/30/2007			3/31/2007			12/31/2006			9/30/2006			6/30/2006
Condensed Statements of Income
Interest income
Loans, including fees	$	19,079		$	18,712		$	18,746		$	18,060		$	16,609
Securities		3,263			3,124			3,131			2,998			2,787
Other		27			6			7			16			13
Total interest income		22,369			21,842			21,884			21,074			19,409
Interest expense
Deposits		8,882			9,028			8,990			7,761			6,408
Borrowings		4,140			3,790			3,705			4,239			4,348
Total interest expense		13,022			12,818			12,695			12,000			10,756
Net interest income		9,347			9,024			9,189			9,074			8,653
Provision for loan losses		390			390			930			260			330
Net interest income after provision
for loan losses		8,957			8,634			8,259			8,814			8,323
Noninterest income
Insurance commissions		209			206			228			219			247
Service fee income		735			617			702			700			726
Securities gains (losses)		-			-			-			-			-
Other income		209			189			162			131			136
Total noninterest income		1,153			1,012			1,092			1,050			1,109
Noninterest expense
Salaries and employee benefits		3,238			3,226			2,899			2,817			3,049
Net occupancy expense		408			418			378			387			390
Equipment expense		493			446			480			476			496
Professional fees		193			174			252			188			245
Other expenses		1,386			1,385			1,291			1,409			1,492
Total noninterest expense		5,718			5,649			5,300			5,277			5,672
Income before income taxes		4,392			3,997			4,051			4,587			3,760
Income taxes		1,240			1,201			1,328			1,421			1,167
Income from continuing operations		3,152			2,796			2,723			3,166			2,593
Discontinued operations
Exit costs and impairment of long-lived assets		43			80			(2,480	)		-			-
Operating income (loss)		(227	)		(372	)		(1,373	)		(1,059	)		74
Income (loss) from discontinued operations
before income taxes		(184	)		(292	)		(3,853	)		(1,059	)		74
Income taxes		(66	)		(97	)		(1,311	)		(374	)		33
Income (loss) from discontinued operations		(118	)		(195	)		(2,542	)		(685	)		41
Net Income	$	3,034		$	2,601		$	181		$	2,481		$	2,634

SUMMIT FINANCIAL GROUP, INC. (NASDAQ:  SMMF)
Five Quarter Performance Summary
	For the Quarter Ended
	6/30/2007			3/31/2007			12/31/2006			9/30/2006			6/30/2006
Per Share Data
Earnings per share from continuing operations
Basic	$	0.45		$	0.40		$	0.39		$	0.45		$	0.36
Diluted	$	0.44		$	0.39		$	0.39		$	0.45		$	0.36
Earnings per share from discontinued operations
Basic	$	(0.02	)	$	(0.03	)	$	(0.36	)	$	(0.10	)	$	0.01
Diluted	$	(0.02	)	$	(0.03	)	$	(0.36	)	$	(0.10	)	$	0.01
Earnings per share
Basic	$	0.43		$	0.37		$	0.03		$	0.35		$	0.37
Diluted	$	0.42		$	0.36		$	0.03		$	0.35		$	0.37
Average shares outstanding
Basic		7,084,980			7,084,980			7,092,531			7,127,650			7,135,107
Diluted		7,148,241			7,147,170			7,151,378			7,187,274			7,189,644
Performance Ratios
Return on average equity		14.40	%		12.72	%		0.88	%		12.46	%		13.53	%
Return on average equity - continuing operations		14.96	%		13.67	%		13.24	%		15.90	%		13.32	%
Return on average assets		0.96	%		0.83	%		0.06	%		0.83	%		0.91	%
Return on average assets - continuing operations		1.00	%		0.90	%		0.89	%		1.06	%		0.89	%
Net interest margin		3.22	%		3.20	%		3.25	%		3.33	%		3.32	%
Efficiency ratio (A)		53.71	%		58.07	%		69.20	%		70.57	%		70.69	%
Efficiency ratio - continuing operations (A)		51.47	%		53.86	%		48.85	%		49.38	%		54.33	%

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	6/30/2007		3/31/2007		12/31/2006		9/30/2006		6/30/2006
Assets	$	1,279,720	$	1,253,925	$	1,234,831	$	1,210,491	$	1,179,648
Securities		259,526		258,173		247,874		246,332		238,382
Loans, net		949,175		930,769		916,045		894,836		866,170
Intangible assets		3,121		3,159		3,197		3,234		3,272
Retail deposits		626,617		623,431		609,064		598,293		570,731
Brokered time deposits		223,771		253,794		279,623		266,769		190,832
Short-term borrowings		100,901		79,886		60,428		90,422		164,185
Long-term borrowings and
subordinated debentures		234,476		201,814		193,881		163,864		167,168
Shareholders' equity		83,067		82,935		79,875		80,630		76,559
Book value per share	$	11.72	$	11.71	$	11.27	$	11.35	$	10.73

SUMMIT FINANCIAL GROUP INC. (NASDAQ: SMMF)
Loan Composition
Dollars in thousands	6/30/2007		3/31/2007		12/31/2006		9/30/2006		6/30/2006
Commercial	$	81,292	$	69,700	$	69,470	$	67,352	$	64,342
Commercial real estate		354,833		329,561		314,199		300,676		296,680
Construction and development		198,721		220,430		215,820		207,545		182,000
Residential real estate		283,821		279,564		282,512		283,943		288,316
Consumer		33,937		33,845		36,455		36,885		37,040
Other		7,111		7,209		6,968		7,086		6,188
Total loans		959,715		940,309		925,424		903,487		874,566
Less unearned fees and interest		1,772		1,757		1,868		1,806		1,767
Total loans net of unearned fees and interest		957,943		938,552		923,556		901,681		872,799
Less allowance for loan losses		8,768		7,783		7,511		6,845		6,629
Loans, net	$	949,175	$	930,769	$	916,045	$	894,836	$	866,170

SUMMIT FINANCIAL GROUP INC. (NASDAQ: SMMF)
Retail Deposit Composition
Dollars in thousands	6/30/2007		3/31/2007		12/31/2006		9/30/2006		6/30/2006
Non interest bearing checking	$	64,373	$	60,645	$	62,591	$	64,751	$	66,071
Interest bearing checking		230,509		230,634		220,167		223,992		214,279
Savings		41,910		44,713		47,984		44,980		38,737
Time deposits		289,825		287,439		278,322		264,570		251,644
Total retail deposits	$	626,617	$	623,431	$	609,064	$	598,293	$	570,731

SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF)
Asset Quality Information
	For the Quarter Ended
Dollars in thousands	6/30/2007			3/31/2007			12/31/2006			9/30/2006			6/30/2006
Net loan charge-off's	$	96		$	119		$	263		$	45		$	135
Net loan charge-off's to average loans (annualized)		0.04	%		0.05	%		0.11	%		0.02	%		0.06	%
Allowance for loan losses	$	8,768		$	7,783		$	7,511		$	6,845		$	6,629
Allowance for loan losses as a percentage
of period end loans		0.91	%		0.83	%		0.81	%		0.76	%		0.76	%
Nonperforming assets:
Nonperforming loans	$	7,307		$	4,474		$	5,276		$	1,273		$	987
Foreclosed properties and
other repossessed assets		851			43			77			180			298
Total	$	8,158		$	4,517		$	5,353		$	1,453		$	1,285
Nonperforming loans to period end loans		0.76	%		0.48	%		0.57	%		0.14	%		0.11	%
Nonperforming assets to period end assets		0.64	%		0.36	%		0.43	%		0.12	%		0.11	%

SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF)
Average Balance Sheet, Interest Earnings & Expenses and Average Rates
Q2 2007 vs Q2 2006
	Q2 2007								Q2 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	$	939,998		$	18,980		8.10	%	$	858,645		$	16,685		7.79	%
Tax-exempt		9,374			184		7.87	%		8,240			155		7.54	%
Securities
Taxable		211,592			2,739		5.19	%		190,214			2,250		4.74	%
Tax-exempt		45,587			783		6.89	%		45,890			801		7.00	%
Interest bearing deposits other banks
and Federal funds sold		2,459			29		4.73	%		986			14		5.70	%
Total interest earning assets		1,209,010			22,715		7.54	%		1,103,975			19,905		7.23	%
Noninterest earning assets
Cash & due from banks		14,525								14,059
Premises & equipment		22,190								23,586
Other assets		27,390								26,846
Allowance for loan losses		(8,611	)							(6,711	)
Total assets	$	1,264,504							$	1,161,755
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Interest bearing liabilities
Interest bearing
demand deposits	$	229,444		$	2,084		3.64	%	$	214,908		$	1,823		3.40	%
Savings deposits		43,252			181		1.68	%		37,381			74		0.79	%
Time deposits		536,852			6,617		4.94	%		430,360			4,511		4.20	%
Short-term borrowings		71,451			960		5.39	%		144,502			1,831		5.08	%
Long-term borrowings and
subordinated debentures		223,021			3,181		5.72	%		179,913			2,518		5.61	%
		1,104,020			13,023		4.73	%		1,007,064			10,757		4.28	%
Noninterest bearing liabilities
Demand deposits		64,665								66,496
Other liabilities		11,551								10,298
Total liabilities		1,180,236								1,083,858
Shareholders' equity		84,268								77,897
Total liabilities and
shareholders' equity	$	1,264,504							$	1,161,755
NET INTEREST EARNINGS				$	9,692							$	9,148
NET INTEREST YIELD ON EARNING ASSETS							3.22	%							3.32	%

Average Balance Sheet, Interest Earnings & Expenses and Average Rates
YTD 2007 vs YTD 2006
	For the Six Months Ended June 30,								For the Six Months Ended June 30,
	2007								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	$	934,513		$	37,645		8.12	%	$	844,093		$	32,077		7.66	%
Tax-exempt		9,147			358		7.89	%		8,242			305		7.46	%
Securities
Taxable		209,965			5,316		5.11	%		188,414			4,385		4.69	%
Tax-exempt		46,433			1,597		6.94	%		44,988			1,568		7.03	%
Interest bearing deposits other banks
and Federal funds sold		1,458			33		4.56	%		1,629			37		4.58	%
Total interest earning assets		1,201,516			44,949		7.54	%		1,087,366			38,372		7.12	%
Noninterest earning assets
Cash & due from banks		13,821								14,259
Premises & equipment		22,260								23,475
Other assets		27,452								25,890
Allowance for loan losses		(8,376	)							(6,525	)
Total assets	$	1,256,673							$	1,144,465
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Interest bearing liabilities
Interest bearing
demand deposits	$	225,705		$	4,150		3.71	%	$	209,565		$	3,366		3.24	%
Savings deposits		44,820			398		1.79	%		40,209			147		0.74	%
Time deposits		546,634			13,362		4.93	%		402,422			8,048		4.03	%
Short-term borrowings		71,930			1,918		5.38	%		158,365			3,795		4.83	%
Long-term borrowings and
subordinated debentures		209,588			6,013		5.79	%		181,971			4,932		5.47	%
		1,098,677			25,841		4.74	%		992,532			20,288		4.12	%
Noninterest bearing liabilities
Demand deposits		62,986								64,906
Other liabilities		11,722								9,850
Total liabilities		1,173,385								1,067,288
Shareholders' equity		83,288								77,177
Total liabilities and
shareholders' equity	$	1,256,673							$	1,144,465
NET INTEREST EARNINGS				$	19,108							$	18,084
NET INTEREST YIELD ON EARNING ASSETS							3.21	%							3.35	%