EXHIBIT 99
Summit Financial Group Reports Record Quarterly Earnings; Q3 2004 EPS Increases
67.3% to $0.87
MOOREFIELD, W.Va.--(BUSINESS WIRE)--Oct. 20, 2004--Summit
Financial Group, Inc. (OTCBB: SMMF) today reported third quarter 2004
net income of $3.1 million, or $0.87 per diluted share, up 67.3
percent on an earnings per share basis from the $1.8 million, or $0.52
per diluted share, reported in the third quarter of 2003. These record
quarterly earnings reflect strong revenue growth in both its community
banking and mortgage banking segments. Net income for the third
quarter of 2004 generated an annualized return on average
shareholders' equity (ROE) of 20.06 percent and an annualized return
on average assets (ROA) of 1.46 percent compared with third quarter
2003 ratios of 13.36 percent and 1.02 percent, respectively.
For the first nine months of 2004, the Company reported net income
of $8.3 million, or $2.30 per diluted share, up 42.9 percent on an
earnings per share basis from $5.7 million, or $1.61 per diluted
share, reported in the prior-year period. Net income for the first
nine months of 2004 generated an ROE of 18.31 percent and an ROA of
1.33 percent compared with 14.06 percent and 1.08 percent,
respectively, for the prior-year period.
H. Charles Maddy III, President and Chief Executive Officer
commented, "Once again we are pleased to report record quarterly
earnings. Our strong earnings performance validates the strategies we
have embarked on to expand into high growth or under-served markets
and to diversify our revenue stream. Both segments of our business -
community banking and mortgage banking - continue to perform well.
Summit continues to prove itself as an attractive investment
opportunity; our planned listing on the Nasdaq SmallCap market within
the next couple months will further strengthen our investment appeal."
Revenue for the third quarter of 2004, consisting of net interest
income plus non-interest income, was $15.6 million, an increase of
131.1 percent over the prior-period quarter. Net interest income
increased 18.8 percent to $7.1 million, reflecting 17.8 percent growth
in average earning assets in combination with a three basis point
increase in the net interest margin to 3.65 percent. Mr. Maddy noted
that the Company has maintained a stable net interest margin over the
last twelve months, despite the challenges of a changing interest rate
environment.
Non-interest income for the third quarter of 2004 was $8.5 million
compared with $0.8 million for the prior-year period. The $7.7 million
improvement resulted primarily from revenue derived from the Company's
new mortgage banking unit, Summit Financial, LLC, which primarily
originates debt consolidation second mortgage loans for borrowers
nationwide and commenced operations during the third quarter of 2003.
Excluding this business, non-interest income increased 35.7 percent,
reflecting strong growth in service fees and other income.
Mr. Maddy commented, "We've enjoyed strong earnings momentum from
Summit Financial, LLC since we began this business one year ago.
Long-term, we continue to see opportunities for growth, although the
near-term may be tempered by seasonal factors." Summit Financial, LLC
contributed $0.9 million to consolidated net income for the third
quarter of 2004 compared with $0.5 million in the previous quarter of
this year. The Company originated $75.8 million in loans during the
third quarter, and sold $79.9 million. This compares with originations
of $74.3 million in the second quarter, and sales of $68.0 million.
Non-interest expense for the third quarter of 2004 was $10.8
million, a $7.0 million or 183.6 percent increase over the $3.8
million reported for the prior-year period. Excluding expenses
associated with Summit Financial, LLC, non-interest expense was $4.2
million, a 20.7 percent increase above the 2003 third quarter.
Mortgage operations significantly affected the efficiency ratio, which
for third quarter 2004 increased to 67.11 percent as compared to 53.50
percent for third quarter 2003. Excluding the impact of mortgage
banking, Summit's efficiency ratio was 51.68 percent compared with
last year's efficiency ratio of 50.31 percent.
Mr. Maddy noted that asset quality remains strong, with a
continued low level of net charge-offs. Nonperforming assets were 0.30
percent of period-end assets at September 30, 2004 compared with 0.29
percent for the linked quarter and 0.21 percent twelve months ago.
Annualized net charge-offs were 0.08 percent of average loans in the
third quarter of 2004, up from 0.00 percent for the second quarter of
2004 and 0.04 percent for the third quarter of 2003. At period-end,
loan loss reserves were 0.87 percent of loans.
Assets at September 30, 2004 were $862.2 million, an increase of
16.4 percent over the last twelve months. The increase was driven by
loan growth of $113.0 million, up 23.6 percent from last year's third
quarter, to $591.3 million; the increase was derived primarily from
commercial real estate loans, up 34.9 percent, and residential
mortgage loans, up 19.1 percent. Loan growth was funded primarily by
deposit growth of $60.8 million, up 12.8 percent to $535.8 million, as
well as a $36.5 million increase in short-term borrowings, which
totaled $77.5 million at period-end.
About the Company
Summit Financial Group, Inc., a financial holding company with
total assets of $862 million, operates twelve banking locations
through its three wholly-owned community banks: Summit Community Bank,
headquartered in Moorefield, West Virginia; Capital State Bank, Inc.,
headquartered in Charleston, West Virginia; and Shenandoah Valley
National Bank in Winchester, Virginia. Summit also operates Summit
Financial, LLC, a residential mortgage loan originator located in
Herndon, Virginia.
Forward-Looking Statements
This press release contains forward-looking statements as defined
by federal securities laws. These statements may address issues that
involve significant risks, uncertainties, estimates and assumptions
made by management. Actual results could differ materially from
current projections. Please refer to Summit's filings with the
Securities and Exchange Commission for a summary of important factors
that could affect Summit's forward-looking statements. Summit
undertakes no obligation to revise these statements following the date
of this press release.
SUMMIT FINANCIAL GROUP, INC. (OTCBB: SMMF)
Quarterly Performance Summary -- Q3 2004 vs Q3 2003
For the Quarter Ended
----------------------
Dollars in thousands, except per Percent
share amounts 9/30/2004 9/30/2003 Change
- ----------------------------------------------------------------------
Condensed Statements of Income
Interest income
Loans, including fees $9,334 $7,877 18.5%
Securities 2,267 2,375 -4.5%
Other 33 42 -21.4%
------------------------
Total interest income 11,634 10,294 13.0%
------------------------
Interest expense
Deposits 2,451 2,467 -0.6%
Borrowings 2,122 1,885 12.6%
------------------------
Total interest expense 4,573 4,352 5.1%
------------------------
Net interest income 7,061 5,942 18.8%
Provision for loan losses 293 232 26.3%
------------------------
Net interest income after provision
for loan losses 6,768 5,710 18.5%
------------------------
Noninterest income
Service fee income 575 403 42.7%
Mortgage origination revenue 7,732 211 3564.5%
Securities gains (losses) (35) - -
Other income 273 196 39.3%
------------------------
Total noninterest income 8,545 810 954.9%
------------------------
Noninterest expense
Salaries and employee benefits 5,055 2,142 136.0%
Net occupancy expense 408 223 83.0%
Equipment expense 433 326 32.8%
Postage expense 1,703 103 1553.4%
Advertising 1,229 89 1280.9%
Other expenses 1,939 914 112.1%
------------------------
Total noninterest expense 10,767 3,797 183.6%
------------------------
Income before income taxes 4,546 2,723 66.9%
Income taxes 1,420 880 61.4%
------------------------
Net income $3,126 $1,843 69.6%
========================
Per Share Data
Basic earnings $0.89 $0.53 67.9%
Diluted earnings $0.87 $0.52 67.3%
Average shares outstanding
Basic 3,513,086 3,504,820 0.2%
Diluted 3,606,290 3,554,700 1.5%
Performance Ratios
Return on average equity 20.06% 13.36% 50.1%
Return on average assets 1.46% 1.02% 43.1%
Net yield on earning assets -
taxable equivalent 3.65% 3.62% 0.8%
Efficiency ratio consolidated(A) 67.11% 53.50% 25.4%
Efficiency ratio excluding mortgage
banking (A) 51.68% 50.31% 2.7%
NOTE: (A) - Computed on a tax equivalent basis excluding
nonrecurring income and expense items and amortization of
intangibles.
SUMMIT FINANCIAL GROUP, INC. (OTCBB: SMMF)
Nine Month Performance Summary -- 2004 vs. 2003
For the Nine Months Ended
Dollars in thousands, except per -------------------------- Percent
share amounts 9/30/2004 9/30/2003 Change
- ----------------------------------------------------------------------
Condensed Statements of Income
Interest income
Loans, including fees $26,393 $23,070 14.4%
Securities 7,109 7,391 -3.8%
Other 97 133 -27.1%
--------------------------
Total interest income 33,599 30,594 9.8%
--------------------------
Interest expense
Deposits 7,254 7,609 -4.7%
Borrowings 5,884 5,673 3.7%
--------------------------
Total interest expense 13,138 13,282 -1.1%
--------------------------
Net interest income 20,461 17,312 18.2%
Provision for loan losses 758 683 11.0%
--------------------------
Net interest income after
provision
for loan losses 19,703 16,629 18.5%
--------------------------
Noninterest income
Service fee income 1,647 1,131 45.6%
Mortgage origination revenue 18,666 534 3395.5%
Securities gains (losses) 1 106 -99.1%
Other income 605 409 47.9%
--------------------------
Total noninterest income 20,919 2,180 859.6%
--------------------------
Noninterest expense
Salaries and employee benefits 13,481 5,940 127.0%
Net occupancy expense 1,099 628 75.0%
Equipment expense 1,303 937 39.1%
Postage expense 4,491 204 2101.5%
Advertising 3,494 201 1638.3%
Other expenses 4,907 2,666 84.1%
--------------------------
Total noninterest expense 28,775 10,576 172.1%
--------------------------
Income before income taxes 11,847 8,233 43.9%
Income taxes 3,596 2,517 42.9%
--------------------------
Net income $8,251 $5,716 44.3%
==========================
Per Share Data
Basic earnings $2.35 $1.63 44.2%
Diluted earnings $2.30 $1.61 42.9%
Average shares outstanding
Basic 3,511,317 3,504,373 0.2%
Diluted 3,581,763 3,549,988 0.9%
Performance Ratios
Return on average equity 18.31% 14.06% 30.2%
Return on average assets 1.33% 1.08% 23.1%
Net yield on earning assets -
taxable equivalent 3.65% 3.61% 1.1%
Efficiency ratio consolidated (A) 67.61% 51.76% 30.6%
Efficiency ratio excluding
mortgage banking (A) 51.93% 50.63% 2.6%
NOTE: (A) - Computed on a tax equivalent basis excluding
nonrecurring income and expense items and amortization of
intangibles.
SUMMIT FINANCIAL GROUP, INC. (OTCBB: SMMF)
Five Quarter Performance Summary
Dollars in thousands, For the Quarter Ended
except per share --------------------------------------------------
amounts 9/30/04 6/30/04 3/31/04 12/31/03 9/30/03
- ----------------------------------------------------------------------
Condensed Statements
of Income
Interest income
Loans, including
fees $9,334 $8,744 $8,314 $8,096 $7,877
Securities 2,267 2,316 2,527 2,501 2,375
Other 33 32 32 37 42
--------------------------------------------------
Total interest
income 11,634 11,092 10,873 10,634 10,294
--------------------------------------------------
Interest expense
Deposits 2,451 2,390 2,414 2,390 2,467
Borrowings 2,122 1,904 1,857 1,862 1,885
--------------------------------------------------
Total interest
expense 4,573 4,294 4,271 4,252 4,352
--------------------------------------------------
Net interest
income 7,061 6,798 6,602 6,382 5,942
Provision for
loan losses 293 233 233 232 232
--------------------------------------------------
Net interest
income after
provision for
loan losses 6,768 6,565 6,369 6,150 5,710
--------------------------------------------------
Noninterest
income
Service fee
income 575 562 509 455 403
Mortgage
origination
revenue 7,732 6,614 4,319 2,604 211
Securities
gains
(losses) (35) 17 20 105 -
Other income 273 239 94 480 196
--------------------------------------------------
Total noninterest
income 8,545 7,432 4,942 3,644 810
--------------------------------------------------
Noninterest
expense
Salaries and
employee
benefits 5,055 4,740 3,686 3,064 2,142
Net occupancy
expense 408 386 304 240 223
Equipment
expense 433 441 429 383 326
Postage expense 1,703 1,435 1,353 781 103
Advertising 1,229 1,304 962 571 89
Other expenses 1,939 1,862 1,105 1,268 914
--------------------------------------------------
Total noninterest
expense 10,767 10,168 7,839 6,307 3,797
--------------------------------------------------
Income before
income taxes 4,546 3,829 3,472 3,487 2,723
Income taxes 1,420 1,155 1,021 994 880
--------------------------------------------------
Net income $3,126 $2,674 $2,451 $2,493 $1,843
==================================================
Per Share Data
Basic earnings $0.89 $0.76 $0.70 $0.71 $0.53
Diluted earnings $0.87 $0.75 $0.69 $0.70 $0.52
Average shares
outstanding
Basic 3,513,086 3,510,784 3,510,063 3,506,874 3,504,820
Diluted 3,606,290 3,563,410 3,553,392 3,541,296 3,554,700
Performance Ratios
Return on average
equity 20.06% 17.96% 16.77% 17.66% 13.36%
Return on average
assets 1.46% 1.29% 1.23% 1.30% 1.02%
Net yield on
earning assets -
taxable
equivalent 3.65% 3.64% 3.67% 3.69% 3.62%
Efficiency ratio
consolidated (A) 67.11% 69.61% 65.84% 61.85% 53.50%
Efficiency ratio
excluding mortgage
banking (A) 51.68% 53.61% 50.45% 49.23% 50.31%
NOTE: (A) - Computed on a tax equivalent basis excluding
nonrecurring income and expense items and amortization of
intangibles.
SUMMIT FINANCIAL GROUP, INC.(OTCBB: SMMF)
Segment Information
For the Quarter Ended September 30, 2004
Parent
Community Mortgage and
Dollars in thousands Banking Banking Other Eliminations Total
- ----------------------------------------------------------------------
Condensed Statements
of Income
Interest income $11,399 $421 $5 $(191) $11,634
Interest expense 4,436 189 139 (191) 4,573
------------------------------------------------
Net interest income 6,963 232 (134) - 7,061
Provision for loan
losses 293 - - - 293
------------------------------------------------
Net interest income
after provision
for loan losses 6,670 232 (134) - 6,768
------------------------------------------------
Noninterest income 700 7,732 1,147 (1,034) 8,545
Noninterest expense 3,880 6,585 1,336 (1,034) 10,767
------------------------------------------------
Income before income
taxes 3,490 1,379 (323) - 4,546
Income taxes 1,064 479 (123) - 1,420
------------------------------------------------
Net income $2,426 $900 $(200) $- $3,126
================================================
Average assets $829,522 $20,185 $75,311 $(67,515) $857,503
================================================
SUMMIT FINANCIAL GROUP, INC. (OTCBB: SMMF)
Segment Information
For the Quarter Ended September 30, 2003
Parent
Community Mortgage and
Dollars in thousands Banking Banking Other Eliminations Total
- ----------------------------------------------------------------------
Condensed Statements of
Income
Interest income $10,298 $- $2 $(6) $10,294
Interest expense 4,292 - 66 (6) 4,352
--------------------------------------------
Net interest income 6,006 - (64) - 5,942
Provision for loan
losses 232 - - - 232
--------------------------------------------
Net interest income
after provision
for loan losses 5,774 - (64) - 5,710
--------------------------------------------
Noninterest income 599 211 844 (844) 810
Noninterest expense 3,390 331 920 (844) 3,797
--------------------------------------------
Income before income
taxes 2,983 (120) (140) - 2,723
Income taxes 938 (41) (17) - 880
--------------------------------------------
Net income $2,045 $(79) $(123) $- $1,843
============================================
Average assets $719,738 $3,994 $60,940 $(58,962) $725,710
============================================
SUMMIT FINANCIAL GROUP, INC. (OTCBB: SMMF)
Segment Information
For the Nine Months Ended September 30, 2004
Parent
Community Mortgage and
Dollars in thousands Banking Banking Other Eliminations Total
- ----------------------------------------------------------------------
Condensed Statements
of Income
Interest income $33,095 $930 $11 $(437) $33,599
Interest expense 12,790 432 353 (437) 13,138
-----------------------------------------------
Net interest income 20,305 498 (342) - 20,461
Provision for loan
losses 758 - - - 758
-----------------------------------------------
Net interest income
after provision
for loan losses 19,547 498 (342) - 19,703
-----------------------------------------------
Noninterest income 2,065 18,664 3,032 (2,842) 20,919
Noninterest expense 11,299 16,600 3,718 (2,842) 28,775
-----------------------------------------------
Income before income
taxes 10,313 2,562 (1,028) - 11,847
Income taxes 3,114 885 (403) - 3,596
-----------------------------------------------
Net income $7,199 $1,677 $(625) $- $8,251
===============================================
Average assets $805,533 $15,376 $72,352 $(64,724) $828,537
===============================================
SUMMIT FINANCIAL GROUP, INC. (OTCBB: SMMF)
Segment Information
For the Nine Months Ended September 30, 2003
Parent
Community Mortgage and
Dollars in thousands Banking Banking Other Eliminations Total
- ----------------------------------------------------------------------
Condensed Statements of
Income
Interest income $30,603 $- $6 $(15) $30,594
Interest expense 13,125 - 172 (15) 13,282
--------------------------------------------
Net interest income 17,478 - (166) - 17,312
Provision for loan
losses 683 - - - 683
--------------------------------------------
Net interest income
after provision
for loan losses 16,795 - (166) - 16,629
--------------------------------------------
Noninterest income 1,666 534 2,444 (2,464) 2,180
Noninterest expense 9,810 498 2,732 (2,464) 10,576
--------------------------------------------
Income before income
taxes 8,651 36 (454) - 8,233
Income taxes 2,640 12 (135) - 2,517
--------------------------------------------
Net income $6,011 $24 $(319) $- $5,716
============================================
Average assets $703,576 $3,280 $58,786 $(56,918) $708,724
============================================
SUMMIT FINANCIAL GROUP, INC. (OTCBB: SMMF)
Selected Balance Sheet Data
Dollars in thousands, For the Quarter Ended
except per share -----------------------------------------------
amounts 9/30/04 6/30/04 3/31/04 12/31/03 9/30/03
- ----------------------------------------------------------------------
Assets $862,246 $849,555 $809,216 $791,465 $740,645
Securities 209,702 213,644 215,732 235,409 223,607
Loans held for sale,
net 12,097 15,607 9,596 6,353 709
Loans, net 586,201 559,869 532,855 498,340 473,779
Intangible assets 3,537 3,574 3,612 3,050 3,088
Deposits 535,822 536,589 530,372 511,801 474,955
Short-term borrowings 77,518 71,350 42,547 49,714 41,049
Long-term borrowings
and subordinated
debentures 178,334 176,248 169,608 168,255 165,526
Shareholders' equity 65,289 58,975 60,674 57,188 55,502
Book value per share $18.58 $16.80 $17.28 $16.30 $15.84
SUMMIT FINANCIAL GROUP INC. (OTCBB: SMMF)
Loan Composition
Dollars in thousands 9/30/04 6/30/04 3/31/04 12/31/03 9/30/03
- ----------------------------------------------------------------------
Commercial $49,630 $49,294 $47,178 $46,860 $43,887
Commercial real estate 271,097 250,562 235,565 209,391 201,011
Residential
construction 3,351 2,665 2,698 2,369 4,042
Residential mortgage 218,118 212,371 203,225 196,135 183,142
Consumer 40,559 41,787 41,060 41,112 40,846
Other 9,784 9,316 8,968 8,223 6,331
------------------------------------------------
Total loans 592,539 565,995 538,694 504,090 479,259
Less unearned fees and
interest 1,200 1,173 1,118 1,069 996
------------------------------------------------
Total loans net of
unearned fees and
interest 591,339 564,822 537,576 503,021 478,263
Less allowance for
loan losses 5,138 4,953 4,721 4,681 4,484
------------------------------------------------
Loans, net $586,201 $559,869 $532,855 $498,340 $473,779
================================================
SUMMIT FINANCIAL GROUP INC. (OTCBB: SMMF)
Mortgage Banking Segment Loan Activity
For the Quarter Ended
---------------------------------------------------
Dollars in
thousands 9/30/04 6/30/04 3/31/04 12/31/03 9/30/03
- ----------------------------------------------------------------------
Loans originated
Amount $75,791 $74,333 $44,935 $32,413 $11,655
Number 1,532 1,461 931 724 88
Loans sold
Amount $79,927 $68,013 $41,376 $26,261 $16,928
Number 1,610 1,364 861 603 112
SUMMIT FINANCIAL GROUP, INC. (OTCBB: SMMF)
Asset Quality Information
For the Quarter Ended
-----------------------------------------------
Dollars in thousands 9/30/04 6/30/04 3/31/04 12/31/03 9/30/03
- ----------------------------------------------------------------------
Net loan charge-off's $107 $1 $192 $37 $46
Net loan charge-off's to
average loans
(annualized) 0.08% 0.00% 0.15% 0.03% 0.04%
Allowance for loan
losses $5,138 $4,953 $4,721 $4,681 $4,484
Allowance for loan
losses as a percentage
of period end loans 0.87% 0.88% 0.88% 0.93% 0.94%
Nonperforming assets:
Nonperforming loans $1,464 $1,577 $1,448 $1,356 $604
Foreclosed properties 756 475 475 480 560
Nonaccrual securities 363 384 389 396 399
---------------------------------------------
Total $2,583 $2,436 $2,312 $2,232 $1,563
=============================================
Nonperforming loans to
period end loans
and other real
estate 0.37% 0.36% 0.36% 0.36% 0.24%
=============================================
Nonperforming assets to
period end assets 0.30% 0.29% 0.29% 0.28% 0.21%
=============================================
SUMMIT FINANCIAL GROUP, INC. (OTCBB:
SMMF)
Average Balance Sheet, Interest Earnings & Expenses and Average Rates
Q3 2004 vs Q3 2003
Q3 2004 Q3 2003
------------------------ ------------------------
Dollars in Average Earnings/ Yield/ Average Earnings/ Yield
thousands Balances Expense Rate Balances Expense Rate
- ----------------------------------------------------------------------
ASSETS
Interest earning assets
Loans, net of unearned
interest
Taxable $585,400 $9,217 6.30% $463,496 $7,793 6.73%
Tax-exempt 9,472 176 7.43% 5,846 122 8.35%
Securities
Taxable 163,866 1,721 4.20% 171,064 1,887 4.41%
Tax-exempt 48,131 817 6.79% 42,254 726 6.87%
Interest bearing
deposits other
banks and Federal
funds sold 3,718 33 3.55% 5,586 44 3.15%
--------- -------- ----- --------- -------- -----
Total interest
earning assets 810,587 11,964 5.90% 688,246 10,572 6.14%
Noninterest earning
assets
Cash & due from
banks 15,675 8,761
Premises &
equipment 20,539 14,084
Other assets 15,756 19,010
Allowance for loan
losses (5,054) (4,391)
--------- ---------
Total assets $857,503 $725,710
========= =========
LIABILITIES AND SHAREHOLDERS'
EQUITY
Liabilities
Interest bearing
liabilities
Interest bearing
demand deposits $123,092 $309 1.00% $98,084 $163 0.66%
Savings deposits 50,904 63 0.50% 47,522 57 0.48%
Time deposits 310,398 2,079 2.68% 281,071 2,247 3.20%
Short-term
borrowings 72,666 317 1.74% 32,000 113 1.41%
Long-term
borrowings and
subordinated
debentures 177,188 1,805 4.07% 160,349 1,772 4.42%
--------- -------- ----- --------- -------- -----
734,248 4,573 2.49% 619,026 4,352 2.81%
Noninterest bearing
liabilities
Demand deposits 55,737 46,994
Other liabilities 5,189 4,501
--------- ---------
Total liabilities 795,174 670,521
Shareholders' equity 62,329 55,189
--------- ---------
Total liabilities
and
shareholders'
equity $857,503 $725,710
========= =========
NET INTEREST EARNINGS $7,391 $6,220
======== ========
NET INTEREST YIELD ON EARNING
ASSETS 3.65% 3.61%
===== =====
SUMMIT FINANCIAL GROUP, INC. (OTCBB:SMMF)
Average Balance Sheet, Interest Earnings & Expenses and Average Rates
YTD 2004 vs YTD 2003
For the Nine Months Ended September 30,
-------------------------------------------------
2004 2003
------------------------ ------------------------
Dollars in Average Earnings/ Yield/ Average Earnings/ Yield
thousands Balances Expense Rate Balances Expense Rate
- ----------------------------------------------------------------------
ASSETS
Interest earning
assets
Loans, net of
unearned interest
Taxable $554,819 $26,069 6.26% $443,628 $22,827 6.86%
Tax-exempt 8,628 489 7.56% 5,931 367 8.25%
Securities
Taxable 167,446 5,459 4.35% 174,554 5,945 4.54%
Tax-exempt 48,344 2,468 6.81% 40,934 2,151 7.01%
Interest bearing
deposits other
banks
and Federal
funds sold 3,543 97 3.65% 5,860 133 3.03%
--------- -------- ----- --------- -------- -----
Total interest
earning assets 782,780 34,582 5.89% 670,907 31,423 6.24%
Noninterest earning
assets
Cash & due from
banks 13,269 8,645
Premises &
equipment 19,803 13,091
Other assets 17,577 20,321
Allowance for loan
losses (4,892) (4,240)
--------- ---------
Total assets $828,537 $708,724
========= =========
LIABILITIES AND SHAREHOLDERS'
EQUITY
Liabilities
Interest bearing
liabilities
Interest bearing
demand deposits $119,403 $841 0.94% $97,891 $590 0.80%
Savings deposits 49,234 174 0.47% 46,821 202 0.58%
Time deposits 307,334 6,239 2.71% 278,648 6,817 3.26%
Short-term
borrowings 63,120 692 1.46% 26,407 286 1.44%
Long-term
borrowings and
subordinated
debentures 171,350 5,192 4.04% 154,382 5,387 4.65%
--------- -------- ----- --------- -------- -----
710,441 13,138 2.47% 604,149 13,282 2.93%
Noninterest bearing
liabilities
Demand deposits 52,631 45,394
Other liabilities 5,372 4,965
--------- ---------
Total liabilities 768,444 654,508
Shareholders' equity 60,093 54,216
--------- ---------
Total liabilities
and
shareholders'
equity $828,537 $708,724
========= =========
NET INTEREST EARNINGS $21,444 $18,141
======== ========
NET INTEREST YIELD ON EARNING
ASSETS 3.65% 3.61%
===== =====
CONTACT: Summit Financial Group, Inc.
Robert S. Tissue, 304-530-0552
rtissue@SummitFGI.com