Exhibit 99.1
Summit Financial Group Reports 16.5% Increase in Q2 Net Income
MOOREFIELD, W.Va.--(BUSINESS WIRE)--July 20, 2005--Summit
Financial Group, Inc. (NASDAQ: SMMF) today reported second quarter
2005 net income of $3.1 million, an increase of 16.5 percent from the
$2.7 million reported for the second quarter of 2004. Diluted earnings
per share were $0.43 compared with $0.38 for the prior-year quarter,
up 13.2 percent. The increase reflects solid growth in revenue, both
from community banking and mortgage banking activities, as well as
controlled expense growth. For the second quarter of 2005, the returns
on average shareholders' equity and average assets were 18.21 percent
1.34 percent, respectively, compared with prior-year period ratios of
17.96 percent and 1.29 percent.
For the six months ended June 30, 2005, Summit reported net income
of $5.5 million, an increase of 7.8 percent from the $5.1 million
reported for the first six months of 2004. Diluted earnings per share
were $0.77 compared with $0.72 for the prior-year period, up 6.9
percent. The increase reflects strong revenue growth, both from
community banking and mortgage banking activities, partially offset by
higher costs associated with expansion activities. For the first six
months of 2005, the returns on average shareholders' equity and
average assets were 16.41 percent and 1.21 percent, respectively,
compared with prior-year period ratios of 17.31 percent and 1.26
percent.
H. Charles Maddy, III, President and Chief Executive Officer,
commented, "We are pleased to report strong growth in net income on
both a year-over-year and a sequential quarter basis. Both segments of
our business are generating strong revenue growth. Community banking
is growing at a solid pace, mainly from the recent investments we have
made to expand our Virginia franchise. We recently opened our sixth
branch in Virginia, and we are quite optimistic about opportunities
going forward. We are experiencing very strong commercial loan
production from a combination of the robust Virginia economy and the
success of the talented bankers that we have placed in key positions.
"We have been more proactive in terms of deposit growth, and the
results have been gratifying. As a result of retail campaigns to
promote our high yield interest-bearing checking product, we are
experiencing stronger deposit growth than in 2004, which has helped to
control funding costs. We are pleased that our net interest margin has
remained within a tight 10 basis point band throughout the past 12
months. Non-interest expenses have also remained under control.
SECOND QUARTER 2005 CONSOLIDATED RESULTS
Total revenue for the second quarter of 2005, consisting of net
interest income plus non-interest income, was $15.8 million, an
increase of 11.2 percent over the second quarter of 2004. Net interest
income for the quarter increased 11.9 percent above the prior-year
second quarter, to $7.6 million, reflecting 12.5 percent growth in
average earning assets, partially offset by a 3 basis point drop in
the net interest margin to 3.61 percent. Compared with first quarter
2005, the net interest margin improved 2 basis points.
Non-interest income for the second quarter of 2005 was $8.2
million compared with $7.4 million for the prior-year period, an
increase of 10.5 percent, reflecting improvement in all categories.
The majority of the increase reflects a $0.5 million or 7.5 percent
improvement in mortgage origination revenue from the Company's
mortgage banking unit, Summit Mortgage (formerly known as Summit
Financial, LLC), which is discussed below. Service fees and "other
income" also demonstrated strong growth, up 15.8 percent and 86.6
percent, respectively, above last year's second quarter.
Non-interest expense for the second quarter of 2005 was $10.9
million, a 7.0 percent increase over the $10.2 million reported for
the second quarter of 2004. Salaries and employee benefits represented
the largest category of expense growth, up $654 thousand or 13.8
percent. The efficiency ratio was 66.98 percent for the second quarter
of 2005 compared with 69.61 percent for the prior-year period. (The
efficiency ratio for the Company's Community Banking Segment, shown
below, is a more accurate indicator of its performance compared with
other community banks.)
Asset quality remains strong. Charge-offs were $44,000 for the
second quarter of 2005, equivalent to an annualized 0.03 percent of
average loans. Nonperforming assets were $2.2 million or 0.23 percent
of assets at June 30, 2005, down from $2.4 million or 0.29 percent at
June 30, 2004. At period-end, loan loss reserves were 0.83 percent of
loans.
Assets at June 30, 2005 were $946.5 million, an increase of 11.4
percent over the last twelve months. The increase was driven by
portfolio loan growth of $100.0 million, up 17.9 percent to $659.9
million. Commercial real estate loans, up $77.5 million or 30.9
percent, were the largest contributors to this growth.
Deposits at June 30, 2005 were $565.2 million, an increase of
$28.6 million, or 5.3 percent from prior-year second quarter levels.
Year-to-date, deposits grew $40.6 million, or 7.7 percent, with total
demand deposits up $31.1 million or 17.5 percent. For the 2005
six-month period, noninterest-bearing deposits rose $7.8 million, or
14.1 percent, while interest-bearing demand deposits rose $23.3
million, or 19.0%. The growth in demand deposits improved the deposit
mix, with demand deposits now accounting for 37.0 percent of total
deposits compared with 33.9 percent at year-end 2004. Growth in
lower-cost demand deposits helped to limit the growth of short-term
borrowings in the first half of 2004, and mitigate their cost. Over
the past twelve months, short-term borrowings grew by $56.6 million to
$128.0 million; of that total, only $7.3 million occurred in the first
half of this year.
Shareholders' equity at period end was $69.8 million, an increase
of 18.4 percent over the last twelve months. Common shares outstanding
totaled 7,123,820 at June 30, 2005.
SECOND QUARTER 2005 OPERATING SEGMENT RESULTS
Community Banking Financial Performance
Net income for the second quarter of 2005 was $2.6 million, an
increase of 7.4% from the prior-year quarter. Total revenue increased
13.5% to $8.5 million, while non-interest expense increased 14.4
percent to $4.4 million due to staff additions and the recently-opened
Harrisonburg, Virginia branch. The Community Banking segment's
efficiency ratio was 54.15 percent compared with 53.61 percent for the
prior-year second quarter.
Mortgage Banking Financial Performance
The Company's mortgage banking unit, Summit Mortgage, commenced
operations during the third quarter of 2003. This segment originates
first mortgages in the Company's community banking markets and debt
consolidation second mortgage loans for borrowers nationwide. Loan
originations in the second quarter of 2005 were $83.6 million, up 21.3
percent above first quarter and up 12.5 percent above last year's
second quarter. Loan sales were $81.4 million, up 21.9 percent above
first quarter and 19.7 percent from the 2004 second quarter.
Net income for the second quarter of 2005 was $755,000, an
increase of 41.9 percent over the prior-year quarter. Revenue totaled
$7.3 million, up 8.0 percent over the prior-year period, while
non-interest expense increased 1.7 percent to $6.1 million.
ABOUT THE COMPANY
Summit Financial Group, Inc., a financial holding company with
total assets of $946 million, operates fourteen banking locations
through its two wholly-owned community banks: Summit Community Bank,
headquartered in Moorefield, West Virginia; and Shenandoah Valley
National Bank in Winchester, Virginia. Summit also operates Summit
Mortgage, a residential mortgage loan originator located in Herndon,
Virginia and Summit Insurance Services, LLC in Moorefield, West
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. (NASDAQ: SMMF)
Quarterly Performance Summary -- Q2 2005 vs Q2 2004
For the Quarter Ended
Dollars in thousands, except per ---------------------- Percent
share amounts 6/30/2005 6/30/2004 Chamge
- -------------------------------------- ---------- --------------------
Condensed Statements of Income
Interest income
Loans, including fees $ 11,205 $ 8,744 28.1%
Securities 2,291 2,316 -1.1%
Other 28 32 -12.5%
---------- ----------
Total interest income 13,524 11,092 21.9%
---------- ----------
Interest expense
Deposits 2,926 2,390 22.4%
Borrowings 2,994 1,904 57.2%
---------- ----------
Total interest expense 5,920 4,294 37.9%
---------- ----------
Net interest income 7,604 6,798 11.9%
Provision for loan losses 425 233 82.4%
---------- ----------
Net interest income after provision
for loan losses 7,179 6,565 9.4%
---------- ----------
Noninterest income
Service fee income 651 562 15.8%
Mortgage origination revenue 7,113 6,614 7.5%
Securities gains (losses) 5 17 -70.6%
Other income 446 239 86.6%
---------- ----------
Total noninterest income 8,215 7,432 10.5%
---------- ----------
Noninterest expense
Salaries and employee benefits 5,394 4,740 13.8%
Net occupancy expense 463 386 19.9%
Equipment expense 483 441 9.5%
Postage expense 1,458 1,435 1.6%
Advertising 1,222 1,304 -6.3%
Other expenses 1,855 1,862 -0.4%
---------- ----------
Total noninterest expense 10,875 10,168 7.0%
---------- ----------
Income before income taxes 4,519 3,829 18.0%
Income taxes 1,403 1,155 21.5%
---------- ----------
Net income $ 3,116 $ 2,674 16.5%
========== ==========
Per Share Data
Basic earnings $ 0.44 $ 0.38 15.8%
Diluted earnings $ 0.43 $ 0.38 13.2%
Average shares outstanding
Basic 7,081,044 7,021,567 0.8%
Diluted 7,205,377 7,126,817 1.1%
Performance Ratios
Return on average equity 18.21% 17.96% 1.4%
Return on average assets 1.34% 1.29% 3.9%
Net yield on earning assets -
taxable equivalent 3.61% 3.64% -0.8%
Efficiency ratio consolidated(A) 66.98% 69.61% -3.8%
Efficiency ratio excluding mortgage
banking (A) 54.15% 53.61% 1.0%
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 -- 2005 vs 2004
For the Six Months Ended
Dollars in thousands, except per ------------------------ Percent
share amounts 6/30/2005 6/30/2004 Change
- ------------------------------------ ----------- --------------------
Condensed Statements of Income
Interest income
Loans, including fees $ 21,215 $ 17,058 24.4%
Securities 4,549 4,842 -6.1%
Other 53 64 -17.2%
----------- ----------
Total interest income 25,817 21,964 17.5%
----------- ----------
Interest expense
Deposits 5,443 4,804 13.3%
Borrowings 5,615 3,761 49.3%
----------- ----------
Total interest expense 11,058 8,565 29.1%
----------- ----------
Net interest income 14,759 13,399 10.2%
Provision for loan losses 755 465 62.4%
----------- ----------
Net interest income after
provision for loan losses 14,004 12,934 8.3%
----------- ----------
Noninterest income
Service fee income 1,198 1,072 11.8%
Mortgage origination revenue 12,969 10,933 18.6%
Securities gains (losses) 5 37 -86.5%
Other income 710 332 113.9%
----------- ----------
Total noninterest income 14,882 12,374 20.3%
----------- ----------
Noninterest expense
Salaries and employee benefits 9,936 8,426 17.9%
Net occupancy expense 892 690 29.3%
Equipment expense 976 870 12.2%
Postage expense 3,025 2,788 8.5%
Advertising 2,547 2,265 12.5%
Other expenses 3,554 2,968 19.7%
----------- ----------
Total noninterest expense 20,930 18,007 16.2%
----------- ----------
Income before income taxes 7,956 7,301 9.0%
Income taxes 2,429 2,176 11.6%
----------- ----------
Net income $ 5,527 $ 5,125 7.8%
=========== ==========
Per Share Data
Basic earnings $ 0.78 $ 0.73 6.8%
Diluted earnings $ 0.77 $ 0.72 6.9%
Average shares outstanding
Basic 7,060,529 7,020,847 0.6%
Diluted 7,206,181 7,105,583 1.4%
Performance Ratios
Return on average equity 16.41% 17.31% -5.2%
Return on average assets 1.21% 1.26% -4.0%
Net yield on earning assets -
taxable equivalent 3.60% 3.66% -1.6%
Efficiency ratio consolidated(A) 68.51% 67.92% 0.9%
Efficiency ratio excluding
mortgage banking (A) 53.55% 52.07% 2.8%
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,
except per share
amounts 6/30/2005 3/31/2005 12/31/2004 9/30/2004 6/30/2004
- ----------------------------------------------------------------------
Condensed
Statements of
Income
Interest income
Loans,
including fees $11,205 $10,010 $9,814 $9,334 $8,744
Securities 2,291 2,258 2,294 2,267 2,316
Other 28 25 30 33 32
----------------------------------------------------
Total
interest
income 13,524 12,293 12,138 11,634 11,092
----------------------------------------------------
Interest expense
Deposits 2,926 2,516 2,456 2,451 2,390
Borrowings 2,994 2,622 2,366 2,122 1,904
----------------------------------------------------
Total interest
expense 5,920 5,138 4,822 4,573 4,294
----------------------------------------------------
Net interest
income 7,604 7,155 7,316 7,061 6,798
Provision for
loan losses 425 330 292 293 233
----------------------------------------------------
Net interest
income after
provision for
loan losses 7,179 6,825 7,024 6,768 6,565
----------------------------------------------------
Noninterest
income
Service fee
income 651 547 592 575 562
Mortgage
origination
revenue 7,113 5,856 5,423 7,732 6,614
Securities
gains (losses) 5 - 32 (35) 17
Other income 446 264 287 273 239
----------------------------------------------------
Total
noninterest
income 8,215 6,667 6,334 8,545 7,432
----------------------------------------------------
Noninterest
expense
Salaries and
employee
benefits 5,394 4,542 4,607 5,055 4,740
Net occupancy
expense 463 429 404 408 386
Equipment
expense 483 493 473 433 441
Postage expense 1,458 1,567 1,361 1,703 1,435
Advertising 1,222 1,325 1,231 1,229 1,304
Other expenses 1,855 1,699 1,939 1,939 1,862
----------------------------------------------------
Total
noninterest
expense 10,875 10,055 10,015 10,767 10,168
----------------------------------------------------
Income before
income taxes 4,519 3,437 3,343 4,546 3,829
Income taxes 1,403 1,026 986 1,420 1,155
----------------------------------------------------
Net income $3,116 $2,411 $2,357 $3,126 $2,674
====================================================
Per Share Data
Basic earnings $0.44 $0.34 $0.34 $0.44 $0.38
Diluted earnings $0.43 $0.34 $0.33 $0.43 $0.38
Average shares
outstanding
Basic 7,081,044 7,039,784 7,032,512 7,026,173 7,021,567
Diluted 7,205,377 7,171,099 7,187,711 7,174,859 7,126,817
Performance
Ratios
Return on
average equity 18.21% 14.53% 14.33% 20.06% 17.96%
Return on
average assets 1.34% 1.08% 1.07% 1.46% 1.29%
Net yield on
earning assets
- taxable
equivalent 3.61% 3.59% 3.69% 3.65% 3.64%
Efficiency ratio
consolidated
(A) 66.98% 70.26% 70.50% 67.11% 69.61%
Efficiency ratio
excluding
mortgage
banking (A) 54.15% 52.90% 52.70% 51.68% 53.61%
NOTE: (A) - Computed on a tax equivalent basis excluding
nonrecurring income and expense items and amortization of intangibles.
SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF)
Segment Information
For the Quarter Ended June 30, 2005
Parent
Community Mortgage and
Dollars in thousands Banking Banking Other Eliminations Total
- ----------------------------------------------------------------------
Condensed Statements
of Income
Interest income $13,328 $485 $6 $(295) $13,524
Interest expense 5,725 294 196 (295) 5,920
------------------------------------------------
Net interest income 7,603 191 (190) - 7,604
Provision for loan
losses 345 80 - - 425
------------------------------------------------
Net interest income
after provision
for loan losses 7,258 111 (190) - 7,179
------------------------------------------------
Noninterest income 905 7,113 1,380 (1,183) 8,215
Noninterest expense 4,374 6,055 1,629 (1,183) 10,875
------------------------------------------------
Income before
income taxes 3,789 1,169 (439) - 4,519
Income taxes 1,221 414 (232) - 1,403
------------------------------------------------
Net income $2,568 $755 $(207) $- $3,116
================================================
Intersegment revenue
(expense) $(820) $(355) $1,175 $- $-
================================================
Average assets $921,770 $23,838 $82,103 $(95,937)$931,774
================================================
SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF)
Segment Information
For the Quarter Ended June 30, 2004
Parent
Community Mortgage and
Dollars in thousands Banking Banking Other Eliminations Total
- ----------------------------------------------------------------------
Condensed Statements
of Income
Interest income $10,941 $301 $3 $(153) $11,092
Interest expense 4,185 153 109 (153) 4,294
------------------------------------------------
Net interest income 6,756 148 (106) - 6,798
Provision for loan
losses 233 - - - 233
------------------------------------------------
Net interest income
after provision
for loan losses 6,523 148 (106) - 6,565
------------------------------------------------
Noninterest income 743 6,614 995 (920) 7,432
Noninterest expense 3,824 5,953 1,311 (920) 10,168
------------------------------------------------
Income before
income taxes 3,442 809 (422) - 3,829
Income taxes 1,050 277 (172) - 1,155
------------------------------------------------
Net income $2,392 $532 $(250) $- $2,674
================================================
Intersegment revenue
(expense) $(715) $(198) $913 $- $-
================================================
Average assets $804,831 $16,512 $73,221 $(63,837)$830,727
================================================
SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF)
Segment Information
For the Six Months Ended June 30, 2005
Parent
Community Mortgage and
Dollars in thousands Banking Banking Other Eliminations Total
- ----------------------------------------------------------------------
Condensed Statements
of Income
Interest income $ 25,532 $ 788 $ 12 $ (515)$ 25,817
Interest expense 10,695 513 365 (515) 11,058
--------- -------- ------- ----------- --------
Net interest income 14,837 275 (353) - 14,759
Provision for loan
losses 675 80 - - 755
--------- -------- ------- ----------- --------
Net interest income
after provision
for loan losses 14,162 195 (353) - 14,004
--------- -------- ------- ----------- --------
Noninterest income 1,593 12,969 2,679 (2,359) 14,882
Noninterest expense 8,571 11,652 3,066 (2,359) 20,930
--------- -------- ------- ----------- --------
Income before
income taxes 7,184 1,512 (740) - 7,956
Income taxes 2,250 530 (351) - 2,429
--------- -------- ------- ----------- --------
Net income $ 4,934 $ 982 $ (389)$ - $ 5,527
========= ======== ======= =========== ========
Intersegment revenue
(expense) $ (1,726)$ (618)$ 2,344 $ - $ -
========= ======== ======= =========== ========
Average assets $ 902,753 $ 21,625 $80,699 $ (92,887)$912,190
========= ======== ======= =========== ========
SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF)
Segment Information
For the Six Months Ended June 30, 2004
Parent
Community Mortgage and
Dollars in thousands Banking Banking Other Eliminations Total
- ----------------------------------------------------------------------
Condensed Statements
of Income
Interest income $21,696 $508 $6 $(246) $21,964
Interest expense 8,355 242 214 (246) 8,565
------------------------------------------------
Net interest income 13,341 266 (208) - 13,399
Provision for loan
losses 465 - - - 465
------------------------------------------------
Net interest income
after provision
for loan losses 12,876 266 (208) - 12,934
------------------------------------------------
Noninterest income 1,366 10,932 1,885 (1,809) 12,374
Noninterest expense 7,418 10,015 2,383 (1,809) 18,007
------------------------------------------------
Income before
income taxes 6,824 1,183 (706) - 7,301
Income taxes 2,049 407 (280) - 2,176
------------------------------------------------
Net income $4,775 $776 $(426) $- $5,125
================================================
Intersegment revenue
(expense) $(1,474) $(327) $1,801 $- $-
================================================
Average assets $792,605 $12,946 $71,112 $(62,591)$814,072
================================================
SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF)
Selected Balance Sheet Data
Dollars in
thousands, except
per share amounts 6/30/2005 3/31/2005 12/31/2004 9/30/2004 6/30/2004
- ----------------------------------------------------------------------
Assets $946,487 $907,264 $889,489 $862,246 $849,555
Securities 209,561 209,223 211,362 209,702 213,644
Loans held for
sale 16,994 15,766 14,274 12,097 15,607
Loans, net 659,792 623,863 602,728 586,201 559,869
Intangible assets 3,423 3,461 3,499 3,537 3,574
Deposits 565,167 537,412 524,614 535,822 536,589
Short-term
borrowings 127,974 129,697 120,629 77,518 71,350
Long-term
borrowings and
subordinated
debentures 176,796 165,384 172,201 178,334 176,248
Shareholders'
equity 69,838 66,400 65,708 65,289 58,975
Book value per
share $9.80 $9.43 $9.33 $9.29 $8.40
SUMMIT FINANCIAL GROUP INC. (NASDAQ: SMMF)
Portfolio Loan Composition
Dollars in
thousands 6/30/2005 3/31/2005 12/31/2004 9/30/2004 6/30/2004
- ----------------------------------------------------------------------
Commercial $59,067 $56,394 $53,226 $49,630 $49,294
Commercial real
estate 328,071 296,911 279,631 271,097 250,562
Residential
construction 3,815 3,806 3,916 3,351 2,665
Residential
mortgage 229,769 226,866 223,689 218,118 212,371
Consumer 36,993 37,066 38,948 40,559 41,787
Other 9,233 9,458 9,605 9,784 9,316
---------------------------------------------------
Total loans 666,948 630,501 609,015 592,539 565,995
Less unearned fees
and interest 1,459 1,322 1,214 1,200 1,173
---------------------------------------------------
Total loans net of
unearned fees and
interest 665,489 629,179 607,801 591,339 564,822
Less allowance for
loan losses 5,697 5,316 5,073 5,138 4,953
---------------------------------------------------
Loans, net $659,792 $623,863 $602,728 $586,201 $559,869
===================================================
SUMMIT FINANCIAL GROUP INC. (NASDAQ: SMMF)
Mortgage Banking Segment Loan Activity
For the Quarter Ended
-----------------------------------------------------
Dollars in
thousands 6/30/2005 3/31/2005 12/31/2004 9/30/2004 6/30/2004
- ----------------------------------------------------------------------
Loans originated
Amount $83,616 $68,929 $65,983 $75,791 $74,333
Number 1,578 1,308 1,182 1,532 1,461
Loans sold
Amount $81,422 $66,761 $62,043 $79,927 $68,013
Number 1,549 1,295 1,148 1,610 1,364
SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF)
Asset Quality Information
For the Quarter Ended
-----------------------------------
Dollars in thousands 6/30/2005 3/31/2005 12/31/2004
- ----------------------------------- ---------- ---------- -----------
Net loan charge-off's $ 44 $ 87 $ 357
Net loan charge-off's to average
loans (annualized) 0.03% 0.05% 0.25%
Allowance for loan losses $ 5,697 $ 5,316 $ 5,073
Allowance for loan losses as a
percentage
of period end loans 0.83% 0.82% 0.82%
Nonperforming assets:
Nonperforming loans $ 911 $ 836 $ 672
Foreclosed properties and
repossessed assets 949 608 646
Nonaccrual securities 326 334 349
---------- ---------- -----------
Total $ 2,186 $ 1,778 $ 1,667
========== ========== ===========
Nonperforming loans to period end
loans 0.13% 0.13% 0.11%
========== ========== ===========
Nonperforming assets to period
end assets 0.23% 0.20% 0.19%
========== ========== ===========
SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF)
Asset Quality Information
For the Quarter Ended
-------------------------------
Dollars in thousands 9/30/2004 6/30/2004 3/31/2004
- ------------------------------------ ---------- ---------- ----------
Net loan charge-off's $ 107 $ 1 $ 192
Net loan charge-off's to average
loans (annualized) 0.08% 0.00% 0.15%
Allowance for loan losses $ 5,138 $ 4,953 $ 4,721
Allowance for loan losses as a
percentage
of period end loans 0.85% 0.85% 0.88%
Nonperforming assets:
Nonperforming loans $ 1,465 $ 1,577 $ 1,448
Foreclosed properties and
repossessed assets 809 482 489
Nonaccrual securities 363 384 389
---------- ---------- ----------
Total $ 2,637 $ 2,443 $ 2,326
========== ========== ==========
Nonperforming loans to period end
loans 0.24% 0.27% 0.27%
========== ========== ==========
Nonperforming assets to period end
assets 0.31% 0.29% 0.29%
========== ========== ==========
SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF)
Average Balance Sheet, Interest Earnings & Expenses and Average Rates
Q2 2005 vs Q2 2004
Q2 2005 Q2 2004
--------------------------------------------------
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 $659,150 $ 11,096 6.75%$556,669 $ 8,635 6.20%
Tax-exempt 8,976 164 7.33% 8,774 166 7.57%
Securities
Taxable 161,831 1,749 4.33% 166,018 1,763 4.25%
Tax-exempt 48,326 811 6.73% 48,620 826 6.80%
Interest bearing
deposits other
banks and
Federal funds
sold 2,846 27 3.81% 3,410 32 3.75%
-------- ---------------- -------- --------------
Total interest
earning assets 881,129 13,847 6.30% 783,491 11,422 5.83%
Noninterest earning
assets
Cash & due from
banks 16,058 14,083
Premises &
equipment 20,686 20,087
Other assets 19,412 17,912
Allowance for loan
losses (5,511) (4,846)
-------- --------
Total assets $931,774 $830,727
======== ========
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Interest bearing
liabilities
Interest bearing
demand deposits $141,902 $ 600 1.70%$119,845 $ 278 0.93%
Savings deposits 49,191 79 0.64% 48,726 55 0.45%
Time deposits 305,538 2,247 2.95% 310,195 2,057 2.65%
Short-term
borrowings 135,016 1,055 3.13% 62,383 203 1.30%
Long-term
borrowings and
subordinated
debentures 165,157 1,939 4.71% 171,205 1,701 3.97%
-------- ---------------- -------- --------------
796,804 5,920 2.98% 712,354 4,294 2.41%
Noninterest bearing
liabilities
Demand deposits 59,073 53,719
Other liabilities 7,451 5,116
-------- --------
Total
liabilities 863,328 771,189
Shareholders' equity 68,446 59,538
-------- --------
Total liabilities
and shareholders'
equity $931,774 $830,727
======== ========
NET INTEREST
EARNINGS $ 7,927 $ 7,128
======== ========
NET INTEREST YIELD ON
EARNING ASSETS 3.61% 3.64%
======== ======
SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF)
Average Balance Sheet, Interest Earnings & Expenses and Average Rates
YTD 2005 vs YTD 2004
For the Six Months Ended June 30,
------------------------------------------------
2005 2004
----------------------- -----------------------
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 $641,631 $ 20,998 6.60%$539,338 $16,852 6.25%
Tax-exempt 9,041 328 7.32% 8,202 313 7.63%
Securities
Taxable 162,072 3,478 4.33% 169,208 3,738 4.42%
Tax-exempt 48,102 1,604 6.72% 48,454 1,651 6.81%
Interest bearing
deposits other
banks and Federal
funds sold 2,788 53 3.83% 3,491 64 3.67%
-------- -------------- -------- -------------
Total interest earning
assets 863,634 26,461 6.18% 768,693 22,618 5.88%
Noninterest earning
assets
Cash & due from
banks 15,294 12,005
Premises & equipment 20,714 19,432
Other assets 17,883 18,752
Allowance for loan
losses (5,335) (4,810)
-------- --------
Total assets $912,190 $814,072
======== ========
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Interest bearing
liabilities
Interest bearing
demand deposits $134,987 $ 1,025 1.53%$117,539 $ 531 0.90%
Savings deposits 49,954 158 0.64% 48,390 111 0.46%
Time deposits 302,046 4,260 2.84% 305,785 4,162 2.72%
Short-term
borrowings 126,006 1,809 2.90% 58,283 375 1.29%
Long-term borrowings
and subordinated
debentures 167,814 3,806 4.57% 168,336 3,386 4.02%
-------- -------------- -------- -------------
780,807 11,058 2.86% 698,333 8,565 2.45%
Noninterest bearing
liabilities
Demand deposits 57,610 51,059
Other liabilities 6,393 5,461
-------- --------
Total liabilities 844,810 754,853
Shareholders' equity 67,380 59,219
-------- --------
Total liabilities
and shareholders'
equity $912,190 $814,072
======== ========
NET INTEREST EARNINGS $ 15,403 $14,053
======== =======
NET INTEREST YIELD ON EARNING
ASSETS 3.60% 3.66%
====== ======
CONTACT: Summit Financial Group, Inc.
Robert S. Tissue, 304-530-0552
Email: rtissue@SummitFGI.com