EXHIBIT INDEX


Exhibit No.                                     Description

99.1                          News Release, dated August 1, 2000 incorporated
                              herein by reference.







                                                                    Exhibit 99.1

                          SUMMIT FINANCIAL GROUP, INC.
                                 P. O. Box 680
                              Moorefield, WV 26836



FOR IMMEDIATE RELEASE


August 1, 2000

Contact:    Robert S. Tissue, CFO
Telephone:  (304) 438-4142, Ext. 22
Email:      rtissue@capstate.com


SUMMIT FINANCIAL GROUP, INC. ANNOUNCES STOCK REPURCHASE PLAN

      The Board of Directors of Summit  Financial Group,  Inc. (OTCBB:  SMMF), a
$429 million bank holding company  headquartered  in Moorefield,  West Virginia,
has  authorized  the  repurchase of up to 20,000  shares of Summit's  issued and
outstanding  common  stock.  The shares  will be  acquired in the open market in
accordance   with   applicable   regulations  of  the  Securities  and  Exchange
Commission.  The  timing  and  quantity  of any  such  purchases  will be at the
discretion  of the  Company.  All  repurchased  shares  will be held as treasury
shares for reissuance in conjunction with Summit's  employee stock ownership and
stock  option  plans and for general  corporate  purposes.  As of July 31, 2000,
Summit had 881,275 common shares outstanding.

      Summit  operates  eleven banking  locations  through its four wholly owned
subsidiary banks, South Branch Valley National Bank headquartered in Moorefield,
West  Virginia,  Capital State Bank,  Inc.  headquartered  in  Charleston,  West
Virginia,  Shenandoah  Valley National Bank in Winchester,  Virginia and Potomac
Valley Bank in Petersburg, West Virginia.