FOR RELEASE 6:00 AM EDT, October 29, 2009
Contact: Robert S. Tissue, Sr. Vice President & CFO
Telephone: (304) 530-0552
Email: rtissue@SummitFGI.com
SUMMIT FINANCIAL GROUP REPORTS Q3 2009 RESULTS
MOOREFIELD, W.V., October 29, 2009 -- Summit Financial Group, Inc. ("Company" or "Summit") (NASDAQ: SMMF) today reported third quarter 2009 net income of $1.4 million, or $0.19 per diluted share, compared with a net loss of $7.7 million, or ($1.03) per diluted share, for the third quarter of 2008. Third quarter 2009 results reflect a decreased provision for loan losses, increased net interest income and continued control of overhead expenses.
Nonrecurring items for the third quarter of 2009 include $428,000 ($270,000 after-tax or $0.04 per diluted share) of securities gains; for the prior-year third quarter, nonrecurring items included an other-than-temporary-impairment (“OTTI”) charge of $4.5 million ($2.8 million after-tax, or $0.38 per diluted share) related to the write-down of Fannie Mae and Freddie Mac preferred stock investments. Excluding nonrecurring items from both quarters, pro forma third quarter 2009 earnings were $1.1 million, or $0.15 per diluted share, compared to a 2008 third quarter net loss of $4.8 million, or ($0.64) per diluted share.
For the nine months ended September 30, 2009, Summit reported a net loss of $282,000, or ($0.04) per diluted share, compared with a net loss of $1.3 million, or ($0.17) per diluted share for the 2008 nine-month period. Excluding nonrecurring charges totaling $5.1 million pretax ($3.2 million after-tax) recorded for both nine-month periods, pro forma earnings for the first nine months of 2009 were $2.9 million, or $0.39 per diluted share, compared to $2.0 million, or $0.27 per diluted share, for the 2008 nine-month period.
Nonrecurring pretax items resulted in a net charge of $5.1 million for the 2009 nine-month period including the FDIC special assessment of $735,000, OTTI write-downs of $4.8 million on residential mortgage-backed securities and $215,000 relating to an equity investment, a $723,000 gain on sale of securities, and a $115,000 loss on sales of various assets; for the 2008 nine-month period, net charges totaling $5.1 million related to nonrecurring pretax items included an OTTI write-down of $6.0 million on Freddie Mac and Fannie Mae preferred stock, gains on the fair value of interest rate swaps of $705,000 ($444,000 after-tax), and a $137,000 gain on sales of various assets.
H. Charles Maddy III, President and Chief Executive Officer of Summit Financial Group, Inc., commented, “Our banking business remains healthy, although pressures continue from the impact of the weak real estate market and ongoing recession. We are taking every precaution to strengthen our financial condition and improve efficiencies to
position Summit for the longer haul. We are managing our business to control discretionary expenses, expand our net interest margin, grow local deposits, and add capital as needed to remain comfortably in excess of “well-capitalized” status in accordance with regulatory capital guidelines.”
Mr. Maddy continued, "Summit Community Bank is located in some of the most dynamic job and real estate markets in the country. Strong population growth and growing household income in Northern Virginia had created extraordinary demand, but even this market finally succumbed to the impact of the recession. The majority of our problem loans have surfaced in Northern Virginia, where demographics still remain more attractive than most areas of the country. However, the market needs time to adjust. We are beginning to see signs of returning health, with firmer housing prices and lower inventories in certain markets. We continue to work with our borrowers to achieve positive outcomes, but final resolution is dependent on improved real estate demand and additional job creation.”
“West Virginia, by comparison, has been a much more stable market -- lower population growth and lower loan growth. In West Virginia, we have very few problem assets and appear to be gaining deposit market share, thanks to some of our recently introduced savings products.”
Highlights of the Third Quarter Include:
| | * | Rising problem loans are taking their toll on earnings by virtue of larger loan loss provisions as well as higher credit administration costs, regulatory costs and foregone interest income. Nonperforming assets grew by $28 million, or 45 percent, year over year. |
| | * | Apart from problem assets, community banking activities remain healthy. Net interest income and fee income have been remarkably stable over the past five quarters, while controllable overhead expenses have declined, albeit modestly, over the past twelve months. |
| | * | Summit has shifted its deposit mix significantly toward retail deposits, specifically savings accounts, while reducing brokered deposits by $29 million, or 10 percent, since year-end 2008. |
| | * | Summit completed a two capital raises this past quarter, generating $4.5 million of additional capital as preferred stock and subordinated debt. The Bank and holding company are both currently “well-capitalized” by regulatory standards; furthermore, the cash dividend to common shareholders is being eliminated to preserve capital while options for additional capital continue to be evaluated. |
Results from Operations
Total revenue, consisting of net interest income and noninterest income, was $13.7 million for the third quarter of 2009, an increase of 67.2 percent from the $8.2 million reported for the year-ago period. Excluding one-time items of $437,000 and $4.6 million, respectively, from the third quarters of 2009 and 2008, total revenue for third quarter of 2009 increased $482,000, or 3.8 percent, over the prior-year third quarter. Net interest income was $10.9 million, up 4.9 percent from the $10.4 million reported in the year-ago quarter from the combined impact of a ten basis point improvement in the net interest margin to 2.99 percent, up 3.5 percent year-over-year, and a 1.3 percent increase in average earning assets.
Noninterest income for the third quarter of 2009 was $2.8 million compared to a negative $2.2 million for the year-ago quarter. Excluding the 2009 gain on sale of securities of $428,000 and asset sales gains and the $4.5 million OTTI charge and loss on asset sales in 2008, noninterest income for the current quarter decreased $29,000, or 1.2 percent, from the 2008 third quarter.
The Company’s loan loss provision has been the primary factor impacting earnings. Summit recorded a $4.0 million provision in the third quarter of 2009 and $13.5 million year-to-date; this compares to net charge-offs of $4.5 million and $16.6 million for the 2009 third quarter and nine month period, respectively. As of September 30, 2009, the allowance for loan losses stood at $13.8 million, or 1.18 percent of total loans compared to 1.21 percent and 1.87 percent at June 30, 2009 and September 30, 2008, respectively.
Noninterest expense for the third quarter of 2009 was $7.9 million, an increase of $582,000, or 8.0 percent, from the third quarter of 2008. The primary factors contributing to increased noninterest expense were increased FDIC insurance premiums and costs associated with the administration and resolution of problem credits, namely, legal fees and expense associated with foreclosed properties. Increased regulatory and problem credit administration costs were partially offset by disciplined control of overhead expenses; salaries/employee benefits and occupancy/equipment expense together declined by $266,000 from third quarter 2008 levels, or 5.2 percent.
Balance Sheet
Total assets as of September 30, 2009 were $1.58 billion, down $49.3 million, or 3.0 percent, since year-end 2008. Total loans, net of unearned interest and fees, were $1.17 billion, down $38.8 million, or 3.2 percent, since year-end 2008. The $38.7 million, or 18.0 percent, decline in construction and development (“C&D”) loans was the primary factor contributing to the loan portfolio decline, while commercial real estate (“CRE”) loans grew modestly over the past nine-months (up $5.4 million, or 1.2 percent).
CRE and residential real estate represent the majority of the Company’s loan portfolio, accounting for 39.0 percent and 32.1 percent of total loans, respectively. C&D loans accounted for 15.1 percent, down from 17.8 percent at December 31, 2008, while non real estate-related commercial (“C&I”) loans accounted for the remaining 10.7 percent of loans.
Consistent with the modest decline in assets since year-end, deposit levels have remained virtually unchanged since December 31, 2008. Mr. Maddy noted, “The mix has changed substantially in favor of higher levels of retail deposits. Brokered deposits declined dramatically, and within the retail deposit portfolio, local time deposits reduced in favor of savings accounts.” Total deposits at September 30, 2009 were $970.0 million, up $4.2 million, or 0.4 percent from $965.8 million at year-end 2008. Retail deposits increased $33.5 million, or 5.0 percent, over the period, and now account for 72.5 percent of total deposits, compared to 69.3 percent of total deposits at 2008 year-end. Strong retail deposit growth was driven by the introduction of new savings account products; savings accounts increased by $54.1 million over the past nine months, or 87.7 percent, enabling Summit to reduce both time deposits and brokered deposits, by $17.4 million (-4.6 percent) and $29.4 million (-9.9 percent), respectively, since year-end 2008.
Asset Quality
Nonperforming assets at September 30, 2009 were $90.0 million, or 5.7 percent of total assets, compared to $82.1 million (5.2 percent of total assets) and $62.1 million (4.0 percent of total assets) at June 30, 2009 and September 30, 2008, respectively.
Nonperforming loans were $58.9 million in the third quarter, a decline of $2.8 million from the linked quarter; CRE loans and C&D loans declined by $603,000 and $2.4 million, respectively. OREO totaled $31.2 million at third quarter-end, up $10.8 million from the second quarter; nearly all of the increase consisted of C&D properties.
Net loan charge-offs during the third quarter of 2009 totaled $4.5 million, or an annualized 1.51 percent of average loans, compared with $13.2 million (4.37 percent of average loans) and $0.9 million (0.32 percent of average loans) for linked quarter and year-ago quarters, respectively. For the nine-month periods, net loan charge-offs were $16.6 million for 2009, or 1.80 percent of average loans annualized, compared to $2.5 million for 2008, or 0.30 percent annualized.
Mr. Maddy added, “Virtually all workout activity is taking place in the Northern Shenandoah Valley region of Virginia and in Berkeley County, West Virginia, where the real estate downturn has been much more severe. Our goal has been to take title to the collateral underlying our problem loans wherever possible, since we are strong believers in the strength of this market and in the properties we financed, as well as expertise of our workout team to maximize recoveries as the economy improves.” In excess of 90 percent of Summit’s nonperforming assets are located in these market areas.
Nonperforming C&D assets totaled $52.4 million as of September 30, 2009, divided between $27.1 million of nonperforming loans and $25.3 million of OREO. This compares with total nonperforming C&D assets of $44.4 million at June 30, 2009. Net C&D charge-offs were $3.3 million for the third quarter and $13.7 million year-to-date.
Total nonperforming CRE assets were $27.6 million as of September 30, 2009, relatively unchanged from second quarter. All nonperforming CRE assets are non-owner occupied properties, which includes a hotel, conference center and golf course credit accounting for $21.3 million of this total. Year-to-date, only $349,000 of CRE loans were charged-off.
Nonperforming residential mortgage loans and OREO totaled $9.6 million at September 30, 2009, up from $9.1 million at June 30, 2009. Year-to-date, $1.5 million has been charged-off. Nonperforming C&I loans were virtually zero: $0.4 million at September 30, 2009 compared with $0.7 million at June 30, 2009.
Capital Adequacy
On September 30, 2009, Summit announced the completion of two capital raises with an aggregate value of $4.5 million. Proceeds were used to bolster the Bank’s capital reserves. Of the $4.5 million issued, $3.7 million was raised through a private placement of convertible preferred stock and $800,000 through an issue of subordinated debt to an unaffiliated investor. At the holding company level, the convertible preferred stock issue qualifies as Tier I capital for regulatory purposes, whereas the newly-issued subordinated debt will be treated as Tier 2 capital.
Shareholders’ equity at September 30, 2009 was $91.9 million, compared to $83.8 million and $80.5 million, respectively, for the linked and year-ago quarters. Capital ratios remain in excess of regulatory requirements for “well-capitalized” for both Summit and its banking subsidiary, Summit Community Bank. As of third quarter-end 2009, common shares outstanding totaled 7,425,472. Mr. Maddy added that Summit continues to evaluate capital raising alternatives to provide additional strength and flexibility to its banking activities.
ABOUT THE COMPANY
Summit Financial Group, Inc., a financial holding company with total assets of $1.6 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 economies. We undertake no obligation to revise these statements following the date of this press release.
NON-GAAP FINANCIAL MEASURES
This press release contains financial information determined by methods other than in accordance with generally accepted accounting principles in the United States of America ("GAAP"). Specifically, Summit adjusted several GAAP performance measures to exclude the effects of realized securities gains and losses, other-than-temporary impairment charge on securities, gains and losses on the sales of other assets, the FDIC’s special assessment and non-cash changes in fair value of interest rate swaps included in its Statements of Income. Management believes presentations of financial measures excluding the impact of these items provide useful supplemental information that is important for a proper understanding of the operating results of Summit's core business. These disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies.
| SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF) | | | | | | | | | |
| Quarterly Performance Summary -- Q3 2009 vs Q3 2008 | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | |
| | | For the Quarter Ended | | | Percent | |
| Dollars in thousands | | 9/30/2009 | | | 9/30/2008 | | | Change | |
| Condensed Statements of Income | | | | | | | | | |
| Interest income | | | | | | | | | |
| Loans, including fees | | $ | 18,061 | | | $ | 18,527 | | | | -2.5 | % |
| Securities | | | 4,351 | | | | 4,108 | | | | 5.9 | % |
| Other | | | 5 | | | | 2 | | | | 150.0 | % |
| Total interest income | | | 22,417 | | | | 22,637 | | | | -1.0 | % |
| Interest expense | | | | | | | | | | | | |
| Deposits | | | 6,094 | | | | 6,704 | | | | -9.1 | % |
| Borrowings | | | 5,427 | | | | 5,549 | | | | -2.2 | % |
| Total interest expense | | | 11,521 | | | | 12,253 | | | | -6.0 | % |
| Net interest income | | | 10,896 | | | | 10,384 | | | | 4.9 | % |
| Provision for loan losses | | | 4,000 | | | | 12,000 | | | | -66.7 | % |
| Net interest income after provision | | | | | | | | | | | | |
| for loan losses | | | 6,896 | | | | (1,616 | ) | | | -526.7 | % |
| Noninterest income | | | | | | | | | | | | |
| Insurance commissions | | | 1,254 | | | | 1,337 | | | | -6.2 | % |
| Service fee income | | | 859 | | | | 828 | | | | 3.7 | % |
| Realized securities gains (losses) | | | 428 | | | | (6 | ) | | | n/a | |
| Other-than-temporary impairment of securities | | | - | | | | (4,495 | ) | | | 100.0 | % |
| Other income | | | 291 | | | | 161 | | | | 80.7 | % |
| Total noninterest income | | | 2,832 | | | | (2,175 | ) | | | -230.2 | % |
| Noninterest expense | | | | | | | | | | | | |
| Salaries and employee benefits | | | 3,862 | | | | 4,113 | | | | -6.1 | % |
| Net occupancy expense | | | 484 | | | | 489 | | | | -1.0 | % |
| Equipment expense | | | 527 | | | | 538 | | | | -2.0 | % |
| Professional fees | | | 330 | | | | 173 | | | | 90.8 | % |
| FDIC premiums | | | 660 | | | | 180 | | | | 266.7 | % |
| Other expenses | | | 2,004 | | | | 1,792 | | | | 11.8 | % |
| Total noninterest expense | | | 7,867 | | | | 7,285 | | | | 8.0 | % |
| Income (loss) before income taxes | | | 1,861 | | | | (11,076 | ) | | | 116.8 | % |
| Income taxes | | | 458 | | | | (3,402 | ) | | | 113.5 | % |
| Net income (loss) | | $ | 1,403 | | | | (7,674 | ) | | | 118.3 | % |
| SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF) | | | | | | | |
| Quarterly Performance Summary -- Q3 2009 vs Q3 2008 | | | | | | | |
| | | | | | | |
| | | For the Quarter Ended | | | Percent | |
| | | 9/30/2009 | | | 9/30/2008 | | | Change | |
| Per Share Data | | | | | | | | | |
| Earnings per share | | | | | | | | | |
| Basic | | $ | 0.19 | | | $ | (1.04 | ) | | | 118.3 | % |
| Diluted | | $ | 0.19 | | | $ | (1.03 | ) | | | 118.4 | % |
| | | | | | | | | | | | | |
| Average shares outstanding | | | | | | | | | | | | |
| Basic | | | 7,425,472 | | | | 7,410,791 | | | | 0.2 | % |
| Diluted | | | 7,432,584 | | | | 7,445,242 | | | | -0.2 | % |
| | | | | | | | | | | | | |
| Performance Ratios | | | | | | | | | | | | |
| Return on average equity | | | 6.49 | % | | | -34.71 | % | | | 118.7 | % |
| Return on average assets | | | 0.35 | % | | | -1.99 | % | | | 117.6 | % |
| Net interest margin | | | 2.99 | % | | | 2.89 | % | | | 3.5 | % |
| Efficiency ratio - (A) | | | 56.27 | % | | | 54.52 | % | | | 3.2 | % |
NOTE: (A) – Computed on a tax equivalent basis excluding nonrecurring income and expense items and amortization of intangibles.
| SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF) | | | | | | | | | |
| Nine Month Performance Summary -- 2009 vs 2008 | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | For the Nine Months Ended | | | Percent | |
| Dollars in thousands | | 9/30/2009 | | | 9/30/2008 | | | Change | |
| Condensed Statements of Income | | | | | | | | | |
| Interest income | | | | | | | | | |
| Loans, including fees | | $ | 54,364 | | | $ | 58,173 | | | | -6.5 | % |
| Securities | | | 13,798 | | | | 11,655 | | | | 18.4 | % |
| Other | | | 6 | | | | 8 | | | | -25.0 | % |
| Total interest income | | | 68,168 | | | | 69,836 | | | | -2.4 | % |
| Interest expense | | | | | | | | | | | | |
| Deposits | | | 19,073 | | | | 20,263 | | | | -5.9 | % |
| Borrowings | | | 15,757 | | | | 16,876 | | | | -6.6 | % |
| Total interest expense | | | 34,830 | | | | 37,139 | | | | -6.2 | % |
| Net interest income | | | 33,338 | | | | 32,697 | | | | 2.0 | % |
| Provision for loan losses | | | 13,500 | | | | 14,750 | | | | -8.5 | % |
| Net interest income after provision | | | | | | | | | | | | |
| for loan losses | | | 19,838 | | | | 17,947 | | | | 10.5 | % |
| Noninterest income | | | | | | | | | | | | |
| Insurance commissions | | | 3,881 | | | | 3,939 | | | | -1.5 | % |
| Service fee income | | | 2,452 | | | | 2,395 | | | | 2.4 | % |
| Net cash settlement on interest rate swaps | | | - | | | | (171 | ) | | | 100.0 | % |
| Change in fair value of interest rate swaps | | | - | | | | 705 | | | | -100.0 | % |
| Realized securities gains (losses) | | | 723 | | | | (6 | ) | | | n/a | |
| Other-than-temporary impairment of securities | | | (4,983 | ) | | | (6,036 | ) | | | 17.4 | % |
| Other income | | | 858 | | | | 975 | | | | -12.0 | % |
| Total noninterest income | | | 2,931 | | | | 1,801 | | | | 62.7 | % |
| Noninterest expense | | | | | | | | | | | | |
| Salaries and employee benefits | | | 12,449 | | | | 12,695 | | | | -1.9 | % |
| Net occupancy expense | | | 1,548 | | | | 1,407 | | | | 10.0 | % |
| Equipment expense | | | 1,622 | | | | 1,606 | | | | 1.0 | % |
| Professional fees | | | 1,067 | | | | 473 | | | | 125.6 | % |
| FDIC premiums | | | 2,288 | | | | 534 | | | | 328.5 | % |
| Other expenses | | | 5,353 | | | | 4,807 | | | | 11.4 | % |
| Total noninterest expense | | | 24,327 | | | | 21,522 | | | | 13.0 | % |
| Income (loss) before income taxes | | | (1,558 | ) | | | (1,774 | ) | | | 12.2 | % |
| Income taxes | | | (1,276 | ) | | | (518 | ) | | | -146.3 | % |
| Net income (loss) | | $ | (282 | ) | | $ | (1,256 | ) | | | 77.5 | % |
| SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF) | | | | | | | |
| Nine Month Performance Summary -- 2009 vs 2008 | | | | | | | |
| | | | | | | |
| | | For the Nine Months Ended | | | Percent | |
| | | 9/30/2009 | | | 9/30/2008 | | | Change | |
| Per Share Data | | | | | | | | | |
| Earnings per share | | | | | | | | | |
| Basic | | | (0.04 | ) | | | (0.17 | ) | | | 76.5 | % |
| Diluted | | | (0.04 | ) | | | (0.17 | ) | | | 76.5 | % |
| | | | | | | | | | | | | |
| Average shares outstanding | | | | | | | | | | | | |
| Basic | | | 7,420,271 | | | | 7,409,986 | | | | 0.1 | % |
| Diluted | | | 7,433,911 | | | | 7,447,313 | | | | -0.2 | % |
| | | | | | | | | | | | | |
| Performance Ratios | | | | | | | | | | | | |
| Return on average equity | | | -0.43 | % | | | -1.82 | % | | | 76.4 | % |
| Return on average assets | | | -0.02 | % | | | -0.11 | % | | | 81.8 | % |
| Net interest margin | | | 3.01 | % | | | 3.16 | % | | | -4.7 | % |
| Efficiency ratio (A) | | | 55.80 | % | | | 52.11 | % | | | 7.1 | % |
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 | | 9/30/2009 | | | 6/30/2009 | | | 3/31/2009 | | | 12/31/2008 | | | 9/30/2008 | |
| Condensed Statements of Income | | | | | | | | | | | | | | | |
| Interest income | | | | | | | | | | | | | | | |
| Loans, including fees | | $ | 18,061 | | | $ | 18,050 | | | $ | 18,254 | | | $ | 19,343 | | | $ | 18,527 | |
| Securities | | | 4,351 | | | | 4,710 | | | | 4,737 | | | | 4,305 | | | | 4,108 | |
| Other | | | 5 | | | | 1 | | | | - | | | | 1 | | | | 2 | |
| Total interest income | | | 22,417 | | | | 22,761 | | | | 22,991 | | | | 23,649 | | | | 22,637 | |
| Interest expense | | | | | | | | | | | | | | | | | | | | |
| Deposits | | | 6,094 | | | | 6,358 | | | | 6,620 | | | | 7,081 | | | | 6,704 | |
| Borrowings | | | 5,427 | | | | 5,296 | | | | 5,035 | | | | 5,190 | | | | 5,549 | |
| Total interest expense | | | 11,521 | | | | 11,654 | | | | 11,655 | | | | 12,271 | | | | 12,253 | |
| Net interest income | | | 10,896 | | | | 11,107 | | | | 11,336 | | | | 11,378 | | | | 10,384 | |
| Provision for loan losses | | | 4,000 | | | | 5,500 | | | | 4,000 | | | | 750 | | | | 12,000 | |
| Net interest income after provision | | | | | | | | | | | | | | | | | | | | |
| for loan losses | | | 6,896 | | | | 5,607 | | | | 7,336 | | | | 10,628 | | | | (1,616 | ) |
| Noninterest income | | | | | | | | | | | | | | | | | | | | |
| Insurance commissions | | | 1,254 | | | | 1,283 | | | | 1,344 | | | | 1,200 | | | | 1,337 | |
| Service fee income | | | 859 | | | | 857 | | | | 736 | | | | 851 | | | | 828 | |
| Realized securities gains (losses) | | | 428 | | | | 39 | | | | 256 | | | | - | | | | (6 | ) |
| Other-than-temporary impairment of securities | | | - | | | | (4,768 | ) | | | (215 | ) | | | (1,024 | ) | | | (4,495 | ) |
| Other income | | | 291 | | | | 247 | | | | 319 | | | | 40 | | | | 161 | |
| Total noninterest income | | | 2,832 | | | | (2,342 | ) | | | 2,440 | | | | 1,067 | | | | (2,175 | ) |
| Noninterest expense | | | | | | | | | | | | | | | | | | | | |
| Salaries and employee benefits | | | 3,862 | | | | 4,308 | | | | 4,279 | | | | 4,047 | | | | 4,113 | |
| Net occupancy expense | | | 484 | | | | 466 | | | | 597 | | | | 463 | | | | 489 | |
| Equipment expense | | | 527 | | | | 527 | | | | 568 | | | | 567 | | | | 538 | |
| Professional fees | | | 330 | | | | 403 | | | | 334 | | | | 250 | | | | 173 | |
| FDIC premiums | | | 660 | | | | 1,245 | | | | 383 | | | | 210 | | | | 180 | |
| Other expenses | | | 2,004 | | | | 1,760 | | | | 1,590 | | | | 2,324 | | | | 1,792 | |
| Total noninterest expense | | | 7,867 | | | | 8,709 | | | | 7,751 | | | | 7,861 | | | | 7,285 | |
| Income (loss) before income taxes | | | 1,861 | | | | (5,444 | ) | | | 2,025 | | | | 3,834 | | | | (11,076 | ) |
| Income taxes | | | 458 | | | | (1,994 | ) | | | 260 | | | | 277 | | | | (3,402 | ) |
| Net income (loss) | | $ | 1,403 | | | $ | (3,450 | ) | | $ | 1,765 | | | $ | 3,557 | | | $ | (7,674 | ) |
| SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF) | | | | | | | | | | | | | |
| Five Quarter Performance Summary | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | For the Quarter Ended | |
| | | 9/30/2009 | | | 6/30/2009 | | | 3/31/2009 | | | 12/31/2008 | | | 9/30/2008 | |
| Per Share Data | | | | | | | | | | | | | | | |
| Earnings per share | | | | | | | | | | | | | | | |
| Basic | | | 0.19 | | | $ | (0.47 | ) | | $ | 0.24 | | | $ | 0.48 | | | $ | (1.04 | ) |
| Diluted | | | 0.19 | | | $ | (0.46 | ) | | $ | 0.24 | | | $ | 0.48 | | | $ | (1.03 | ) |
| | | | | | | | | | | | | | | | | | | | | |
| Average shares outstanding | | | | | | | | | | | | | | | | | | | | |
| Basic | | | 7,425,472 | | | | 7,419,974 | | | | 7,415,310 | | | | 7,411,577 | | | | 7,410,791 | |
| Diluted | | | 7,432,584 | | | | 7,431,969 | | | | 7,435,510 | | | | 7,434,643 | | | | 7,445,242 | |
| | | | | | | | | | | | | | | | | | | | | |
| Performance Ratios | | | | | | | | | | | | | | | | | | | | |
| Return on average equity | | | 6.49 | % | | | -16.13 | % | | | 7.94 | % | | | 17.08 | % | | | -34.71 | % |
| Return on average assets | | | 0.35 | % | | | -0.86 | % | | | 0.43 | % | | | 0.89 | % | | | -1.99 | % |
| Net interest margin | | | 2.99 | % | | | 3.00 | % | | | 3.04 | % | | | 3.04 | % | | | 2.89 | % |
| Efficiency ratio - (A) | | | 56.27 | % | | | 56.50 | % | | | 54.63 | % | | | 51.14 | % | | | 54.52 | % |
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 | | 9/30/2009 | | | 6/30/2009 | | | 3/31/2009 | | | 12/31/2008 | | | 9/30/2008 | |
| | | | | | | | | | | | | | | | |
| Assets | | $ | 1,577,793 | | | $ | 1,583,910 | | | $ | 1,598,968 | | | $ | 1,627,066 | | | $ | 1,567,325 | |
| Securities | | | 285,156 | | | | 289,267 | | | | 295,706 | | | | 350,622 | | | | 327,648 | |
| Loans, net | | | 1,156,432 | | | | 1,165,653 | | | | 1,186,042 | | | | 1,192,157 | | | | 1,145,606 | |
| Intangible assets | | | 9,441 | | | | 9,529 | | | | 9,617 | | | | 9,704 | | | | 9,792 | |
| Retail deposits | | | 702,785 | | | | 705,953 | | | | 699,065 | | | | 669,261 | | | | 663,569 | |
| Brokered time deposits | | | 267,237 | | | | 248,271 | | | | 256,293 | | | | 296,589 | | | | 281,655 | |
| Short-term borrowings | | | 73,733 | | | | 104,718 | | | | 120,480 | | | | 153,100 | | | | 98,316 | |
| Long-term borrowings and | | | | | | | | | | | | | | | | | | | | |
| subordinated debentures | | | 433,037 | | | | 432,391 | | | | 430,687 | | | | 412,337 | | | | 434,016 | |
| Shareholders' equity | | | 91,937 | | | | 83,753 | | | | 83,604 | | | | 87,244 | | | | 80,510 | |
| | | | | | | | | | | | | | | | | | | | | |
| Book value per common share | | $ | 12.38 | | | $ | 11.28 | | | $ | 11.27 | | | $ | 11.77 | | | $ | 10.86 | |
| Tangible book value per common share | | $ | 11.11 | | | $ | 10.00 | | | $ | 9.98 | | | $ | 10.46 | | | $ | 9.54 | |
| Tangible equity / Tangible assets | | | 5.3 | % | | | 4.7 | % | | | 4.7 | % | | | 4.8 | % | | | 4.5 | % |
| Tier 1 leverage ratio | | | 6.4 | % | | | 6.1 | % | | | 6.2 | % | | | 6.2 | % | | | 6.2 | % |
| SUMMIT FINANCIAL GROUP INC. (NASDAQ: SMMF) | | | | | | | | | | | | | |
| Loan Composition | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| Dollars in thousands | | 9/30/2009 | | | 6/30/2009 | | | 3/31/2009 | | | 12/31/2008 | | | 9/30/2008 | |
| | | | | | | | | | | | | | | | |
| Commercial | | $ | 125,743 | | | $ | 126,661 | | | $ | 128,707 | | | $ | 130,106 | | | $ | 115,106 | |
| Commercial real estate | | | 457,669 | | | | 459,671 | | | | 452,987 | | | | 452,264 | | | | 423,982 | |
| Construction and development | | | 176,783 | | | | 183,733 | | | | 211,849 | | | | 215,465 | | | | 225,582 | |
| Residential real estate | | | 376,440 | | | | 376,019 | | | | 380,351 | | | | 376,026 | | | | 366,989 | |
| Consumer | | | 29,555 | | | | 30,179 | | | | 30,201 | | | | 31,519 | | | | 31,433 | |
| Other | | | 6,087 | | | | 5,760 | | | | 6,133 | | | | 6,061 | | | | 6,240 | |
| Total loans | | | 1,172,277 | | | | 1,182,023 | | | | 1,210,228 | | | | 1,211,441 | | | | 1,169,332 | |
| Less unearned fees and interest | | | 1,997 | | | | 2,065 | | | | 2,190 | | | | 2,351 | | | | 2,293 | |
| Total loans net of unearned fees and interest | | | 1,170,280 | | | | 1,179,958 | | | | 1,208,038 | | | | 1,209,090 | | | | 1,167,039 | |
| Less allowance for loan losses | | | 13,848 | | | | 14,305 | | | | 21,996 | | | | 16,933 | | | | 21,433 | |
| Loans, net | | $ | 1,156,432 | | | $ | 1,165,653 | | | $ | 1,186,042 | | | $ | 1,192,157 | | | $ | 1,145,606 | |
| SUMMIT FINANCIAL GROUP INC. (NASDAQ: SMMF) | | | | | | | | | | |
| Retail Deposit Composition | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| Dollars in thousands | | 9/30/2009 | | | 6/30/2009 | | | 3/31/2009 | | | 12/31/2008 | | | 9/30/2008 | |
| | | | | | | | | | | | | | | | |
| Non interest bearing checking | | $ | 68,929 | | | $ | 69,878 | | | $ | 70,483 | | | $ | 69,808 | | | $ | 70,353 | |
| Interest bearing checking | | | 154,683 | | | | 152,498 | | | | 155,157 | | | | 156,990 | | | | 182,383 | |
| Savings | | | 115,767 | | | | 105,828 | | | | 94,294 | | | | 61,688 | | | | 58,678 | |
| Time deposits | | | 363,406 | | | | 377,749 | | | | 379,131 | | | | 380,775 | | | | 352,155 | |
| Total retail deposits | | $ | 702,785 | | | $ | 705,953 | | | $ | 699,065 | | | $ | 669,261 | | | $ | 663,569 | |
| SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF) | | | | | | | | | | | | | |
| Asset Quality Information | | | | | | | | | | | | | | | |
| | | For the Quarter Ended | |
| Dollars in thousands | | 9/30/2009 | | | 6/30/2009 | | | 3/31/2009 | | | 12/31/2008 | | | 9/30/2008 | |
| | | | | | | | | | | | | | | | |
| Gross loan charge-offs | | $ | 4,586 | | | $ | 13,288 | | | $ | 522 | | | $ | 5,351 | | | $ | 969 | |
| Gross loan recoveries | | | (127 | ) | | | (98 | ) | | | (1,585 | ) | | | (102 | ) | | | (52 | ) |
| Net loan charge-offs | | $ | 4,459 | | | $ | 13,190 | | | $ | (1,063 | ) | | $ | 5,249 | | | $ | 917 | |
| | | | | | | | | | | | | | | | | | | | | |
| Net loan charge-offs to average loans (annualized) | | | 1.51 | % | | | 4.37 | % | | | -0.35 | % | | | 1.75 | % | | | 0.32 | % |
| Allowance for loan losses | | $ | 13,848 | | | $ | 14,305 | | | $ | 21,996 | | | $ | 16,933 | | | $ | 21,433 | |
| Allowance for loan losses as a percentage | | | | | | | | | | | | | | | | | | | | |
| of period end loans | | | 1.18 | % | | | 1.21 | % | | | 1.82 | % | | | 1.40 | % | | | 1.87 | % |
| Nonperforming assets: | | | | | | | | | | | | | | | | | | | | |
| Nonperforming loans | | | | | | | | | | | | | | | | | | | | |
| Commercial | | $ | 431 | | | $ | 680 | | | $ | 637 | | | $ | 199 | | | $ | 140 | |
| Commercial real estate | | | 22,684 | | | | 23,287 | | | | 25,788 | | | | 24,323 | | | | 27,347 | |
| Construction and development | | | 27,084 | | | | 29,508 | | | | 45,194 | | | | 18,382 | | | | 29,127 | |
| Residential real estate | | | 8,578 | | | | 8,116 | | | | 7,933 | | | | 4,986 | | | | 2,799 | |
| Consumer | | | 75 | | | | 107 | | | | 31 | | | | 79 | | | | 432 | |
| Total nonperforming loans | | | 58,852 | | | | 61,698 | | | | 79,583 | | | | 47,969 | | | | 59,845 | |
| Foreclosed properties | | | | | | | �� | | | | | | | | | | | | | |
| Commercial real estate | | | 4,873 | | | | 4,561 | | | | 961 | | | | 875 | | | | 1,375 | |
| Construction and development | | | 25,278 | | | | 14,904 | | | | 6,726 | | | | 6,755 | | | | 180 | |
| Residential real estate | | | 1,042 | | | | 970 | | | | 120 | | | | 480 | | | | 677 | |
| Total foreclosed properties | | | 31,193 | | | | 20,435 | | | | 7,807 | | | | 8,110 | | | | 2,232 | |
| Other repossessed assets | | | 1 | | | | 11 | | | | 17 | | | | 3 | | | | 52 | |
| Total | | $ | 90,046 | | | $ | 82,144 | | | $ | 87,407 | | | $ | 56,082 | | | $ | 62,129 | |
| | | | | | | | | | | | | | | | | | | | | |
| Nonperforming loans to period end loans | | | 5.02 | % | | | 5.22 | % | | | 6.58 | % | | | 3.97 | % | | | 5.13 | % |
| Nonperforming assets to period end assets | | | 5.71 | % | | | 5.19 | % | | | 5.47 | % | | | 3.45 | % | | | 3.96 | % |
| SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF) | | | | | | | | | |
| Average Balance Sheet, Interest Earnings & Expenses and Average Rates | | | | | | |
| Q3 2009 vs Q3 2008 | | | | | | | | | | | |
| | Q3 2009 | | Q3 2008 |
| | 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 | $1,174,120 | | $17,952 | | 6.07% | | $1,144,923 | | $18,413 | | 6.40% |
| Tax-exempt | 8,068 | | 168 | | 8.26% | | 8,365 | | 173 | | 8.23% |
| Securities | | | | | | | | | | | |
| Taxable | 261,382 | | 3,808 | | 5.78% | | 269,735 | | 3,563 | | 5.25% |
| Tax-exempt | 48,434 | | 823 | | 6.74% | | 50,484 | | 820 | | 6.46% |
| Interest bearing deposits other banks | | | | | | | | | | | |
| and Federal funds sold | 819 | | 5 | | 2.42% | | 295 | | 2 | | 2.70% |
| Total interest earning assets | 1,492,823 | | 22,756 | | 6.05% | | 1,473,802 | | 22,971 | | 6.20% |
| | | | | | | | | | | | |
| Noninterest earning assets | | | | | | | | | | | |
| Cash & due from banks | 26,284 | | | | | | 20,936 | | | | |
| Premises & equipment | 23,955 | | | | | | 22,047 | | | | |
| Other assets | 66,611 | | | | | | 38,782 | | | | |
| Allowance for loan losses | (15,654) | | | | | | (11,053) | | | | |
| Total assets | $1,594,019 | | | | | | $1,544,514 | | | | |
| | | | | | | | | | | | |
| LIABILITIES AND SHAREHOLDERS' EQUITY | | | | | | | | | | |
| | | | | | | | | | | | |
| Liabilities | | | | | | | | | | | |
| Interest bearing liabilities | | | | | | | | | | | |
| Interest bearing | | | | | | | | | | | |
| demand deposits | $153,941 | | $194 | | 0.50% | | $187,442 | | $586 | | 1.24% |
| Savings deposits | 111,570 | | 403 | | 1.43% | | 60,584 | | 261 | | 1.71% |
| Time deposits | 632,660 | | 5,497 | | 3.45% | | 585,197 | | 5,857 | | 3.98% |
| Short-term borrowings | 82,352 | | 128 | | 0.62% | | 119,769 | | 671 | | 2.23% |
| Long-term borrowings and | - | | | | | | | | | | |
| subordinated debentures | 437,102 | | 5,299 | | 4.81% | | 418,093 | | 4,878 | | 4.64% |
| | 1,417,625 | | 11,521 | | 3.22% | | 1,371,085 | | 12,253 | | 3.56% |
| Noninterest bearing liabilities | | | | | | | | | | | |
| Demand deposits | 81,774 | | | | | | 78,012 | | | | |
| Other liabilities | 8,189 | | | | | | 6,991 | | | | |
| Total liabilities | 1,507,588 | | | | | | 1,456,088 | | | | |
| | | | | | | | | | | | |
| Shareholders' equity | 86,431 | | | | | | 88,426 | | | | |
| Total liabilities and | | | | | | | | | | | |
| shareholders' equity | $1,594,019 | | | | | | $1,544,514 | | | | |
| | | | | | | | | | | | |
| NET INTEREST EARNINGS | | | $11,235 | | | | | | $10,718 | | |
| | | | | | | | | | | | |
| NET INTEREST YIELD ON EARNING ASSETS | | | | 2.99% | | | | | | 2.89% |
| SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF) | | | | | | | | |
| Average Balance Sheet, Interest Earnings & Expenses and Average Rates | | | | | | |
| YTD 2009 vs YTD 2008 | | | | | | | | | | | |
| | For the Nine Months Ended September 30, | | For the Nine Months Ended September 30, |
| | 2009 | | 2008 |
| | 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 | $1,191,692 | | $54,033 | | 6.06% | | $1,107,474 | | $57,824 | | 6.97% |
| Tax-exempt | 8,112 | | 502 | | 8.27% | | 8,647 | | 529 | | 8.17% |
| Securities | | | | | | | | | | | |
| Taxable | 277,558 | | 12,226 | | 5.89% | | 256,914 | | 9,921 | | 5.16% |
| Tax-exempt | 46,988 | | 2,382 | | 6.78% | | 50,923 | | 2,594 | | 6.80% |
| Interest bearing deposits other | | | | | | | | | | | |
| banks and Federal funds sold | 1,022 | | 6 | | 0.78% | | 391 | | 7 | | 2.39% |
| Total interest earning assets | 1,525,372 | | 69,149 | | 6.06% | | 1,424,349 | | 70,875 | | 6.65% |
| | | | | | | | | | | | |
| Noninterest earning assets | | | | | | | | | | | |
| Cash & due from banks | 21,873 | | | | | | 18,118 | | | | |
| Premises & equipment | 23,446 | | | | | | 22,058 | | | | |
| Other assets | 54,881 | | | | | | 37,579 | | | | |
| Allowance for loan losses | (19,377) | | | | | | (10,176) | | | | |
| Total assets | $1,606,195 | | | | | | $1,491,928 | | | | |
| | | | | | | | | | | | |
| LIABILITIES AND SHAREHOLDERS' EQUITY | | | | | | | | | | |
| | | | | | | | | | | | |
| Liabilities | | | | | | | | | | | |
| Interest bearing liabilities | | | | | | | | | | | |
| Interest bearing | | | | | | | | | | | |
| demand deposits | $154,945 | | $586 | | 0.51% | | $198,246 | | $2,134 | | 1.44% |
| Savings deposits | 96,011 | | 1,173 | | 1.63% | | 54,583 | | 668 | | 1.63% |
| Time deposits | 636,569 | | 17,314 | | 3.64% | | 536,493 | | 17,461 | | 4.35% |
| Short-term borrowings | 113,896 | | 487 | | 0.57% | | 110,228 | | 2,161 | | 2.62% |
| Long-term borrowings and | | | | | | | | | | | |
| subordinated debentures | 430,947 | | 15,270 | | 4.74% | | 418,265 | | 14,715 | | 4.70% |
| | 1,432,368 | | 34,830 | | 3.25% | | 1,317,815 | | 37,139 | | 3.76% |
| Noninterest bearing liabilities | | | | | | | | | | | |
| Demand deposits | 79,122 | | | | | | 74,153 | | | | |
| Other liabilities | 8,083 | | | | | | 8,085 | | | | |
| Total liabilities | 1,519,573 | | | | | | 1,400,053 | | | | |
| | | | | | | | | | | | |
| Shareholders' equity | 86,622 | | | | | | 91,875 | | | | |
| Total liabilities and | | | | | | | | | | | |
| shareholders' equity | $1,606,195 | | | | | | $1,491,928 | | | | |
| | | | | | | | | | | | |
| NET INTEREST EARNINGS | | | $34,319 | | | | | | $33,736 | | |
| | | | | | | | | | | | |
| NET INTEREST YIELD ON EARNING ASSETS | | | | 3.01% | | | | | | 3.16% |
| SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF) | | | | | | | | | | | | |
| Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures | | | | | | | |
| | | | | | | | | | | | | |
| | | For the Quarter Ended | | | For the Nine Months Ended | |
| Dollars in thousands | | 9/30/2009 | | | 9/30/2008 | | | 9/30/2009 | | | 9/30/2008 | |
| | | | | | | | | | | | | |
| Net income - excluding realized securities gains/losses, | | | | | | | | | | | | |
| other-than-temporary impairment of securities, gains/losses | | | | | | | | | | | | |
| on sales of assets, FDIC special assessment and change in | | | | | | | | | | |
| fair value of interest rate swaps | | $ | 1,128 | | | $ | (4,776 | ) | | $ | 2,937 | | | $ | 2,020 | |
| Realized securities gains/(losses) | | | 428 | | | | (6 | ) | | | 723 | | | | (6 | ) |
| Applicable income tax effect | | | (158 | ) | | | 2 | | | | (268 | ) | | | 2 | |
| Other-than-temporary impairment of securities | | | - | | | | (4,495 | ) | | | (4,983 | ) | | | (6,036 | ) |
| Applicable income tax effect | | | - | | | | 1,663 | | | | 1,844 | | | | 2,233 | |
| Gains/(losses) on sales of assets | | | 9 | | | | (99 | ) | | | (115 | ) | | | 137 | |
| Applicable income tax effect | | | (3 | ) | | | 37 | | | | 43 | | | | (51 | ) |
| FDIC special assessment | | | - | | | | - | | | | (735 | ) | | | - | |
| Applicable income tax effect | | | - | | | | - | | | | 272 | | | | - | |
| Change in fair value of interest rate swaps | | | - | | | | - | | | | - | | | | 705 | |
| Applicable income tax effect | | | - | | | | - | | | | - | | | | (261 | ) |
| | | | 275 | | | | (2,898 | ) | | | (3,219 | ) | | | (3,276 | ) |
| GAAP net income | | $ | 1,403 | | | $ | (7,674 | ) | | $ | (282 | ) | | $ | (1,256 | ) |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Diluted earnings per share - excluding realized securities gains/losses, | | | | | | | | | | | | | |
| other-than-temporary impairment of securities, gains/losses | | | | | | | | | | | | | | | | |
| on sales of assets, FDIC special assessment and change in | | | | | | | | | | | | | |
| fair value of interest rate swaps | | $ | 0.15 | | | $ | (0.64 | ) | | $ | 0.39 | | | $ | 0.27 | |
| | | | | | | | | | | | | | | | | |
| Realized securities gains/(losses) | | | 0.06 | | | | - | | | | 0.10 | | | | - | |
| Applicable income tax effect | | | (0.02 | ) | | | - | | | | (0.04 | ) | | | - | |
| Other-than-temporary impairment of securities | | | - | | | | (0.60 | ) | | | (0.67 | ) | | | (0.81 | ) |
| Applicable income tax effect | | | - | | | | 0.22 | | | | 0.25 | | | | 0.30 | |
| Gains/(losses) on sales of assets | | | - | | | | (0.01 | ) | | | (0.02 | ) | | | 0.02 | |
| Applicable income tax effect | | | - | | | | 0.00 | | | | 0.01 | | | | (0.01 | ) |
| FDIC special assessment | | | - | | | | - | | | | (0.10 | ) | | | - | |
| Applicable income tax effect | | | - | | | | - | | | | 0.04 | | | | - | |
| Change in fair value of interest rate swaps | | | - | | | | - | | | | - | | | | 0.09 | |
| Applicable income tax effect | | | - | | | | - | | | | - | | | | (0.03 | ) |
| | | | 0.04 | | | | (0.39 | ) | | | (0.43 | ) | | | (0.44 | ) |
| GAAP diluted earnings per share | | $ | 0.19 | | | $ | (1.03 | ) | | $ | (0.04 | ) | | $ | (0.17 | ) |
| SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF) | | | | | | | | | | | | |
| Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures (con't) | | | | | | | |
| | | | | | | | | | | | | |
| | | For the Quarter Ended | | | For the Nine Months Ended | |
| Dollars in thousands | | 9/30/2009 | | | 9/30/2008 | | | 9/30/2009 | | | 9/30/2008 | |
| | | | | | | | | | | | | |
| Total revenue - excluding realized securities gains/(losses) | | | | | | | | | | | | |
| other-than-temporary impairment of securities | | | | | | | | | | | | |
| and change in fair value of interest rate swaps | | $ | 13,291 | | | $ | 12,809 | | | $ | 40,644 | | | $ | 39,698 | |
| | | | | | | | | | | | | | | | | |
| Realized securities gains/(losses) | | | 428 | | | | (6 | ) | | | 723 | | | | (6 | ) |
| Other-than-temporary impairment of securities | | | - | | | | (4,495 | ) | | | (4,983 | ) | | | (6,036 | ) |
| Gains/(losses) on sales of assets | | | 9 | | | | (99 | ) | | | (115 | ) | | | 137 | |
| Change in fair value of interest rate swaps | | | - | | | | - | | | | - | | | | 705 | |
| | | | 437 | | | | (4,600 | ) | | | (4,375 | ) | | | (5,200 | ) |
| GAAP total revenue | | $ | 13,728 | | | $ | 8,209 | | | $ | 36,269 | | | $ | 34,498 | |
| | | | | | | | | | | | | | | | | |
| Total noninterest income - excluding realized securities | | | | | | | | | | | | | | | | |
| gains/(losses), other-than-temporary impairment of | | | | | | | | | | | | | | | | |
| securities and change in fair value of interest rate swaps | | $ | 2,396 | | | $ | 2,425 | | | $ | 7,306 | | | $ | 7,001 | |
| | | | | | | | | | | | | | | | | |
| Realized securities gains/(losses) | | | 428 | | | | (6 | ) | | | 723 | | | | (6 | ) |
| Other-than-temporary impairment of securities | | | - | | | | (4,495 | ) | | | (4,983 | ) | | | (6,036 | ) |
| Gains/(losses) on sales of assets | | | 9 | | | | (99 | ) | | | (115 | ) | | | 137 | |
| Change in fair value of interest rate swaps | | | - | | | | - | | | | - | | | | 705 | |
| | | | 437 | | | | (4,600 | ) | | | (4,375 | ) | | | (5,200 | ) |
| GAAP total noninterest income | | $ | 2,833 | | | $ | (2,175 | ) | | $ | 2,931 | | | $ | 1,801 | |
