MOOREFIELD, W.Va., July 26, 2007 (PRIME NEWSWIRE) -- Summit Financial Group, Inc. (Nasdaq:SMMF) today reported second quarter 2007 net income of its consolidated operations and its continuing operations which excludes from income substantially all business activities of Summit Mortgage, its residential mortgage loan origination unit, which ceased operations in January 2007.
Income from continuing operations for second quarter 2007 was $3.2 million, or $0.44 per diluted share, up 21.6 percent and 22.2 percent, respectively, compared with $2.6 million, or $0.36 per diluted share, reported for the prior-year period. Consolidated net income was $3.0 million, or $0.42 per diluted share, compared with $2.6 million, or $0.37 per diluted share reported for the second quarter of 2006. Second quarter 2007 results reflect solid asset growth, stable operating expenses, and a slight improvement in the net interest margin. For the second quarter of 2007, the returns on average shareholders' equity and average assets from continuing operations were 14.96 percent and 1.00 percent, respectively, compared with prior-year ratios of 13.32 percent and 0.89 percent.
For the six months ended June 30, 2007, income from continuing operations was $5.9 million, or $0.83 per diluted share, up 14.8 percent and 15.3 percent, respectively, compared with $5.2 million, or $0.72 per diluted share, reported for the prior-year period. Consolidated net income for the first half of 2007 was $5.6 million, or $0.79 per diluted share, compared with $5.6 million, or $0.78 per diluted share reported for the 2006 six-month period. For the first six months of 2007, the returns on average shareholders' equity and average assets from continuing operations were 14.28 percent and 0.95 percent, respectively, compared with prior-year ratios of 13.60 percent and 0.91 percent.
H. Charles Maddy, III, president and chief executive officer, commented, "Second quarter results demonstrate the strength of our community banking franchise. Our success in maintaining loan growth despite a slowdown in construction and development lending shows our ability to react to market dynamics, as reflected in our higher levels of commercial and commercial real estate loans this quarter. Further, our net interest margin and our return on equity (from continuing operations) have remained remarkably steady throughout this very challenging period. We look forward to concentrating our energies and our capital to expand our market share in some of the best markets in the country, including the new markets in Northern Virginia and Montgomery County, Maryland that we plan to enter when we complete our acquisition of Greater Atlantic Financial Corp. in the fourth quarter of this year."
For the second quarter of 2007, total revenue increased 7.6 percent to $10.5 million compared with $9.8 million for the year-earlier quarter. Net interest income was $9.3 million compared with $8.7 million in the prior-year first quarter, an increase of 8.0 percent. The increase reflected 9.5 percent growth in average earning assets, partially offset by a 10 basis point decline in the net interest margin to 3.22 percent. Non-interest income, which consists of insurance commissions and service fees, was $1.2 million for the current quarter, an increase of $44,000 or 4.0 percent from the prior-year quarter. Non-interest income accounted for 11.0 percent of total revenue, in line with its contribution in previous quarters.
Summit's operating expenses remain exceptionally well controlled; second quarter 2007 non-interest expense was $5.7 million, up a nominal 0.8 percent from the year-ago quarter, and up 1.2 percent from the prior quarter. Reflecting the combination of growing revenue and stable expenses, the efficiency ratio (for continuing operations) improved to 51.47 percent compared with 54.33 percent for the prior-year quarter.
At June 30, 2007, nonperforming assets were $8.2 million, or 0.64 percent of total assets, compared with $4.5 million, or 0.36 percent for the linked quarter and $1.3 million, or 0.11 percent for the year-ago quarter. Relationships with three developers comprise in excess of 50 percent of total nonperforming assets. Each of these loans is well-collateralized and adequate reserves are in place. For the current quarter, the Company had net charge-offs of $96,000, or an annualized 0.04 percent of average loans, compared with $119,000, or an annualized 0.05 percent for the linked quarter, and $135,000, or 0.06 percent annualized for the year earlier period. At June 30, 2007, loan loss reserves were 0.91 percent of loans outstanding.
Assets at June 30, 2007 were $1.28 billion, an increase of $100.1 million, or 8.5 percent over the last twelve months. Loans, net of unearned income, were $949.2 million at period end, up $83.0 million, or 9.6 percent, year over year. Commercial real estate was the largest contributor to loan growth, up $58.2 million, or 19.6 percent over the past twelve months. Commercial real estate remains the largest component of Summit's loan portfolio at 37.0 percent of total loans, with residential mortgages accounting for an additional 29.6 percent. Construction and development loans, the third largest component of the portfolio, increased $16.7 million year over year, but experienced a significant reduction from the first quarter of 2007, declining $21.7 million, or 9.8 percent.
Deposits at June 30, 2007 were $850.4 million, an increase of $88.8 million, or 11.7 percent from the $761.6 million reported for the prior-year quarter. However, compared with the linked quarter, deposits decreased $26.8 million, or 3.1 percent, reflecting a $30.0 million reduction in brokered time deposits. Retail deposits totaled $626.6 million at quarter end, and accounted for 73.7 percent of total deposits, with non-interest bearing deposits growing $3.7 million, or 6.1 percent, compared with the linked quarter.
Shareholders' equity at June 30, 2007 was $83.1 million, an increase of 8.5 percent over the last twelve months. Common shares outstanding totaled 7,084,980 at year-end.
ABOUT THE COMPANY
Summit Financial Group, Inc., a financial holding company with total assets of $1.28 billion, operates fifteen banking locations through its wholly-owned community bank, Summit Community Bank, headquartered in Moorefield, West Virginia. Summit also operates Summit Insurance Services, LLC headquartered in Moorefield, West Virginia.
FORWARD-LOOKING STATEMENTS
This press release contains comments or information that constitute forward-looking statements (within the meaning of the Private Securities Litigation Act of 1995) that are based on current expectations that involve a number of risks and uncertainties. Words such as "expects", "anticipates", "believes", "estimates" and other similar expressions or future or conditional verbs such as "will", "should", "would" and "could" are intended to identify such forward-looking statements.
Although we believe the expectations reflected in such forward-looking statements are reasonable, actual results may differ materially. Factors that might cause such a difference include changes in interest rates and interest rate relationships; demand for products and services; the degree of competition by traditional and non-traditional competitors; changes in banking laws and regulations; changes in tax laws; the impact of technological advances; the outcomes of contingencies; trends in customer behavior as well as their ability to repay loans; and changes in the national and local economy. We undertake no obligation to revise these statements following the date of this press release.
SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF)
Quarterly Performance Summary -- Q2 2007 vs Q2 2006
For the Quarter Ended
---------------------- Percent
Dollars in thousands 6/30/07 6/30/06 Change
---------------------------------------------------------------------
Condensed Statements of Income
Interest income
Loans, including fees $ 19,079 $ 16,609 14.9%
Securities 3,263 2,787 17.1%
Other 27 13 107.7%
-------- --------
Total interest income 22,369 19,409 15.3%
-------- --------
Interest expense
Deposits 8,882 6,408 38.6%
Borrowings 4,140 4,348 -4.8%
-------- --------
Total interest expense 13,022 10,756 21.1%
-------- --------
Net interest income 9,347 8,653 8.0%
Provision for loan losses 390 330 18.2%
-------- --------
Net interest income after provision
for loan losses 8,957 8,323 7.6%
-------- --------
Noninterest income
Insurance commissions 209 247 -15.4%
Service fee income 735 726 1.2%
Securities gains (losses) -- -- --
Other income 209 136 53.7%
-------- --------
Total noninterest income 1,153 1,109 4.0%
-------- --------
Noninterest expense
Salaries and employee benefits 3,238 3,049 6.2%
Net occupancy expense 408 390 4.6%
Equipment expense 493 496 -0.6%
Professional fees 193 245 -21.2%
Other expenses 1,386 1,492 -7.1%
-------- --------
Total noninterest expense 5,718 5,672 0.8%
-------- ---------
Income from continuing operations
before income taxes 4,392 3,760 16.8%
Income taxes 1,240 1,167 6.3%
-------- --------
Income from continuing operations 3,152 2,593 21.6%
-------- --------
Discontinued operations
Exit costs and impairment of long-
lived assets 43 -- n/a
Operating income (loss) (227) 74 -406.8%
-------- --------
Income (loss) from discontinued
operations before income taxes (184) 74 -348.6%
Income taxes (66) 33 -300.0%
-------- --------
Income (loss) from discontinued
operations (118) 41 -387.8%
-------- --------
Net Income $ 3,034 $ 2,634 15.2%
======== ========
SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF)
Quarterly Performance Summary -- Q2 2007 vs Q2 2006
For the Quarter Ended Percent
6/30/2007 6/30/2006 Change
---------------------------------------------------------------------
Per Share Data
Earnings per share from continuing
operations
Basic $ 0.45 $ 0.36 25.0%
Diluted $ 0.44 $ 0.36 22.2%
Earnings per share from discontinued
operations
Basic $ (0.02) $ 0.01 -300.0%
Diluted $ (0.02) $ 0.01 -300.0%
Earnings per share
Basic $ 0.43 $ 0.37 16.2%
Diluted $ 0.42 $ 0.37 13.5%
Average shares outstanding
Basic 7,084,980 7,135,107 -0.7%
Diluted 7,148,241 7,189,644 -0.6%
Performance Ratios
Return on average equity 14.40% 13.53% 6.4%
Return on average equity - continuing
operations 14.96% 13.32% 12.3%
Return on average assets 0.96% 0.91% 5.5%
Return on average assets - continuing
operations 1.00% 0.89% 12.4%
Net interest margin 3.22% 3.32% -3.0%
Efficiency ratio (a) 53.71% 70.69% -24.0%
Efficiency ratio - continuing
operations (a) 51.47% 54.33% -5.3%
NOTE: (a) - Computed on a tax equivalent basis excluding
nonrecurring income and expense items and amortization of
intangibles.
SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF)
Six Month Performance Summary -- 2007 vs 2006
For the Six Months Ended
------------------------ Percent
Dollars in thousands 6/30/2007 6/30/2006 Change
---------------------------------------------------------------------
Condensed Statements of Income
Interest income
Loans, including fees $ 37,792 $ 31,850 18.7%
Securities 6,386 5,434 17.5%
Other 34 36 -5.6%
-------- --------
Total interest income 44,212 37,320 18.5%
-------- --------
Interest expense
Deposits 17,910 11,561 54.9%
Borrowings 7,931 8,727 -9.1%
-------- --------
Total interest expense 25,841 20,288 27.4%
-------- --------
Net interest income 18,371 17,032 7.9%
Provision for loan losses 780 655 19.1%
-------- --------
Net interest income after provision
for loan losses 17,591 16,377 7.4%
-------- --------
Noninterest income
Insurance commissions 415 477 -13.0%
Service fee income 1,353 1,356 -0.2%
Securities gains (losses) -- -- --
Other income 397 279 42.3%
-------- --------
Total noninterest income 2,165 2,112 2.5%
-------- --------
Noninterest expense
Salaries and employee benefits 6,463 6,104 5.9%
Net occupancy expense 826 792 4.3%
Equipment expense 940 946 -0.6%
Professional fees 367 452 -18.8%
Other expenses 2,772 2,739 1.2%
-------- --------
Total noninterest expense 11,368 11,033 3.0%
-------- --------
Income from continuing operations
before income taxes 8,388 7,456 12.5%
Income taxes 2,441 2,275 7.3%
-------- --------
Income from continuing operations 5,947 5,181 14.8%
-------- --------
Discontinued operations
Exit costs and impairment of long-
lived assets 123 -- n/a
Operating income (loss) (599) 683 -187.7%
-------- --------
Income (loss) from discontinued
operations before income taxes (476) 683 -169.7%
Income taxes (163) 259 -162.9%
-------- --------
Income (loss) from discontinued
operations (313) 424 -173.8%
-------- --------
Net Income $ 5,634 $ 5,605 0.5%
======== ========
SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF)
Six Month Performance Summary -- 2007 vs 2006
For the Six Months Ended
------------------------- Percent
6/30/2007 6/30/2006 Change
---------------------------------------------------------------------
Per Share Data
Earnings per share from
continuing operations
Basic 0.84 $ 0.73 15.1%
Diluted 0.83 $ 0.72 15.3%
Earnings per share from
discontinued operations
Basic (0.04) $ 0.06 -166.7%
Diluted (0.04) $ 0.06 -166.7%
Earnings per share
Basic $ 0.80 $ 0.79 1.3%
Diluted $ 0.79 $ 0.78 1.3%
Average shares outstanding
Basic 7,084,980 7,131,611 -0.7%
Diluted 7,147,784 7,189,383 -0.6%
Performance Ratios
Return on average equity 13.53% 14.53% -6.9%
Return on average equity -
continuing operations 14.28% 13.60% 5.0%
Return on average assets 0.90% 0.98% -8.2%
Return on average assets -
continuing operations 0.95% 0.91% 4.4%
Net interest margin 3.21% 3.35% -4.2%
Efficiency ratio (a) 55.74% 69.92% -20.3%
Efficiency ratio -
continuing operations (a) 52.46% 54.05% -2.9%
NOTE: (a) - Computed on a tax equivalent basis excluding nonrecurring
income and expense items and amortization of intangibles.
For the Quarter Ended
-------------------------------------------
Dollars in thousands 6/30/ 3/31/ 12/31/ 9/30/ 6/30/
2007 2007 2006 2006 2006
---------------------------------------------------------------------
Condensed Statements
of Income
Interest income
Loans, including
fees $19,079 $18,712 $18,746 $18,060 $16,609
Securities 3,263 3,124 3,131 2,998 2,787
Other 27 6 7 16 13
------- ------- ------- ------- -------
Total interest
income 22,369 21,842 21,884 21,074 19,409
------- ------- ------- ------- -------
Interest expense
Deposits 8,882 9,028 8,990 7,761 6,408
Borrowings 4,140 3,790 3,705 4,239 4,348
------- ------- ------- ------- -------
Total interest
expense 13,022 12,818 12,695 12,000 10,756
------- ------- ------- ------- -------
Net interest
income 9,347 9,024 9,189 9,074 8,653
Provision for
loan losses 390 390 930 260 330
------- ------- ------- ------- -------
Net interest
income after
provision for
loan losses 8,957 8,634 8,259 8,814 8,323
------- ------- ------- ------- -------
Noninterest income
Insurance
commissions 209 206 228 219 247
Service fee
income 735 617 702 700 726
Securities gains
(losses) -- -- -- -- --
Other income 209 189 162 131 136
------- ------- ------- ------- -------
Total
noninterest
income 1,153 1,012 1,092 1,050 1,109
------- ------- ------- ------- -------
Noninterest expense
Salaries and
employee
benefits 3,238 3,226 2,899 2,817 3,049
Net occupancy
expense 408 418 378 387 390
Equipment expense 493 446 480 476 496
Professional fees 193 174 252 188 245
Other expenses 1,386 1,385 1,291 1,409 1,492
------- ------- ------- ------- -------
Total
noninterest
expense 5,718 5,649 5,300 5,277 5,672
------- ------- ------- ------- -------
Income before
income taxes 4,392 3,997 4,051 4,587 3,760
Income taxes 1,240 1,201 1,328 1,421 1,167
------- ------- ------- ------- -------
Income from
continuing
operations 3,152 2,796 2,723 3,166 2,593
------- ------- ------- ------- -------
Discontinued
operations
Exit costs and
impairment of
long-lived
assets 43 80 (2,480) -- --
Operating income
(loss) (227) (372) (1,373) (1,059) 74
------- ------- ------- ------- -------
Income (loss) from
discontinued
operations before
income taxes (184) (292) (3,853) (1,059) 74
Income taxes (66) (97) (1,311) (374) 33
------- ------- ------- ------- -------
Income (loss)
from
discontinued
operations (118) (195) (2,542) (685) 41
------- ------- ------- ------- -------
Net Income $ 3,034 $ 2,601 $ 181 $ 2,481 $ 2,634
======= ======= ======= ======= =======
SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF)
Five Quarter Performance Summary
For the Quarter Ended
-----------------------------------------------------
6/30/ 3/31/ 12/31/ 9/30/ 6/30/
2007 2007 2006 2006 2006
--------------------------------------------------------------------
Per Share Data
Earnings
per share
from
continuing
operations
Basic $ 0.45 $ 0.40 $ 0.39 $ 0.45 $ 0.36
Diluted $ 0.44 $ 0.39 $ 0.39 $ 0.45 $ 0.36
Earnings
per share
from
discontinued
operations
Basic $ (0.02) $ (0.03) $ (0.36) $ (0.10) $ 0.01
Diluted $ (0.02) $ (0.03) $ (0.36) $ (0.10) $ 0.01
Earnings
per share
Basic $ 0.43 $ 0.37 $ 0.03 $ 0.35 $ 0.37
Diluted $ 0.42 $ 0.36 $ 0.03 $ 0.35 $ 0.37
Average shares
outstanding
Basic 7,084,980 7,084,980 7,092,531 7,127,650 7,135,107
Diluted 7,148,241 7,147,170 7,151,378 7,187,274 7,189,644
Performance
Ratios
Return on
average
equity 14.40% 12.72% 0.88% 12.46% 13.53%
Return on
average
equity -
continuing
operations 14.96% 13.67% 13.24% 15.90% 13.32%
Return on
average
assets 0.96% 0.83% 0.06% 0.83% 0.91%
Return on
average
assets -
continuing
operations 1.00% 0.90% 0.89% 1.06% 0.89%
Net interest
margin 3.22% 3.20% 3.25% 3.33% 3.32%
Efficiency
ratio (a) 53.71% 58.07% 69.20% 70.57% 70.69%
Efficiency
ratio -
continuing
operations (a) 51.47% 53.86% 48.85% 49.38% 54.33%
NOTE: (a) - Computed on a tax equivalent basis excluding nonrecurring
income and expense items and amortization of intangibles.
SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF)
Selected Balance Sheet Data
For the Quarter Ended
------------------------------------------------------
Dollars in
thousands,
except per
share amounts 6/30/2007 3/31/2007 12/31/2006 9/30/2006 6/30/2006
---------------------------------------------------------------------
Assets $1,279,720 $1,253,925 $1,234,831 $1,210,491 $1,179,648
Securities 259,526 258,173 247,874 246,332 238,382
Loans, net 949,175 930,769 916,045 894,836 866,170
Intangible
assets 3,121 3,159 3,197 3,234 3,272
Retail
deposits 626,617 623,431 609,064 598,293 570,731
Brokered
time
deposits 223,771 253,794 279,623 266,769 190,832
Short-term
borrowings 100,901 79,886 60,428 90,422 164,185
Long-term
borrowings
and
subordinated
debentures 234,476 201,814 193,881 163,864 167,168
Shareholders'
equity 83,067 82,935 79,875 80,630 76,559
Book value
per share $ 11.72 $ 11.71 $ 11.27 $ 11.35 $ 10.73
SUMMIT FINANCIAL GROUP INC. (NASDAQ: SMMF)
Loan Composition
Dollars in
thousands 6/30/2007 3/31/2007 12/31/2006 9/30/2006 6/30/2006
---------------------------------------------------------------------
Commercial $ 81,292 $ 69,700 $ 69,470 $ 67,352 $ 64,342
Commercial real
estate 354,833 329,561 314,199 300,676 296,680
Construction and
development 198,721 220,430 215,820 207,545 182,000
Residential real
estate 283,821 279,564 282,512 283,943 288,316
Consumer 33,937 33,845 36,455 36,885 37,040
Other 7,111 7,209 6,968 7,086 6,188
-------- -------- -------- -------- --------
Total loans 959,715 940,309 925,424 903,487 874,566
Less unearned fees
and interest 1,772 1,757 1,868 1,806 1,767
-------- -------- -------- -------- --------
Total loans net of
unearned fees and
interest 957,943 938,552 923,556 901,681 872,799
Less allowance for
loan losses 8,768 7,783 7,511 6,845 6,629
-------- -------- -------- -------- --------
Loans, net $949,175 $930,769 $916,045 $894,836 $866,170
======== ======== ======== ======== ========
SUMMIT FINANCIAL GROUP INC. (NASDAQ: SMMF)
Retail Deposit Composition
Dollars in
thousands 6/30/2007 3/31/2007 12/31/2006 9/30/2006 6/30/2006
---------------------------------------------------------------------
Non interest
bearing checking $ 64,373 $ 60,645 $ 62,591 $ 64,751 $ 66,071
Interest bearing
checking 230,509 230,634 220,167 223,992 214,279
Savings 41,910 44,713 47,984 44,980 38,737
Time deposits 289,825 287,439 278,322 264,570 251,644
-------- -------- -------- -------- --------
Total retail
deposits $626,617 $623,431 $609,064 $598,293 $570,731
======== ======== ======== ======== ========
SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF)
Asset Quality Information
For the Quarter Ended
------------------------------------------------
Dollars in
thousands 6/30/2007 3/31/2007 12/31/2006 9/30/2006 6/30/2006
---------------------------------------------------------------------
Net loan
charge-off's $ 96 $ 119 $ 263 $ 45 $ 135
Net loan
charge-off's to
average loans
(annualized) 0.04% 0.05% 0.11% 0.02% 0.06%
Allowance for loan
losses $ 8,768 $ 7,783 $7,511 $ 6,845 $ 6,629
Allowance for loan
losses as
a percentage of
period end loans 0.91% 0.83% 0.81% 0.76% 0.76%
Nonperforming
assets:
Nonperforming loans $ 7,307 $4,474 $ 5,276 $ 1,273 $ 987
Foreclosed
properties and
other repossessed
assets 851 43 77 180 298
------- ------- ------- ------- -------
Total $ 8,158 $ 4,517 $ 5,353 $ 1,453 $ 1,285
======= ======= ======= ======= =======
Nonperforming loans
to period end loans 0.76% 0.48% 0.57% 0.14% 0.11%
======= ======= ======= ======= =======
Nonperforming assets
to period end
assets 0.64% 0.36% 0.43% 0.12% 0.11%
==== ==== ==== ==== ====
SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF)
Average Balance Sheet, Interest Earnings & Expenses and
Average Rates Q2 2007 vs Q2 2006
Q2 2007 Q2 2006
---------------------------- ---------------------------
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 $ 939,998 $ 18,980 8.10% $ 858,645 $ 16,685 7.79%
Tax-exempt 9,374 184 7.87% 8,240 155 7.54%
Securities
Taxable 211,592 2,739 5.19% 190,214 2,250 4.74%
Tax-exempt 45,587 783 6.89% 45,890 801 7.00%
Interest
bearing
deposits
other banks
and Federal
funds
sold 2,459 29 4.73% 986 14 5.70%
---------- ---------- ---- ---------- ---------- ----
Total
interest
earning
assets 1,209,010 22,715 7.54% 1,103,975 19,905 7.23%
Noninterest
earning assets
Cash & due
from banks 14,525 14,059
Premises &
equipment 22,190 23,586
Other
assets 27,390 26,846
Allowance
for loan
losses (8,611) (6,711)
---------- ----------
Total
assets $1,264,504 $1,161,755
========== ==========
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Interest
bearing
liabilities
Interest
bearing
demand
deposits $ 229,444 $ 2,084 3.64% $ 214,908 $ 1,823 3.40%
Savings
deposits 43,252 181 1.68% 37,381 74 0.79%
Time
deposits 536,852 6,617 4.94% 430,360 4,511 4.20%
Short-term
borrowings 71,451 960 5.39% 144,502 1,831 5.08%
Long-term
borrowings
and
subordinated
debentures 223,021 3,181 5.72% 179,913 2,518 5.61%
---------- ---------- ---- ---------- ---------- ----
1,104,020 13,023 4.73% 1,007,064 10,757 4.28%
Noninterest
bearing
liabilities
Demand
deposits 64,665 66,496
Other
liabili-
ties 11,551 10,298
---------- ----------
Total
liabili-
ties 1,180,236 1,083,858
Shareholders'
equity 84,268 77,897
---------- ----------
Total
liabil-
ities
and
share-
holders'
equity $1,264,504 $1,161,755
========== ==========
NET INTEREST
EARNINGS $ 9,692 $ 9,148
========== ==========
NET INTEREST
YIELD ON
EARNING
ASSETS 3.22% 3.32%
==== ====
SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF)
Average Balance Sheet, Interest Earnings & Expenses and Average Rates
YTD 2007 vs YTD 2006
For the Six Months Ended For the Six Months Ended
-------------------------------------------------------
June 30, 2007 June 30, 2006
-------------------------------------------------------
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 $ 934,513 $37,645 8.12% $ 844,093 $32,077 7.66%
Tax-exempt 9,147 358 7.89% 8,242 305 7.46%
Securities
Taxable 209,965 5,316 5.11% 188,414 4,385 4.69%
Tax-exempt 46,433 1,597 6.94% 44,988 1,568 7.03%
Interest
bearing
deposits
other
banks and
Federal
funds sold 1,458 33 4.56% 1,629 37 4.58%
---------- ------- ---- --------- ------- ----
Total
interest
earning
assets 1,201,516 44,949 7.54% 1,087,366 38,372 7.12%
Noninterest
earning
assets
Cash & due
from banks 13,821 14,259
Premises &
equipment 22,260 23,475
Other
assets 27,452 25,890
Allowance
for loan
losses (8,376) (6,525)
---------- ----------
Total
assets $1,256,673 $1,144,465
========== ==========
LIABILITIES
AND
SHAREHOLDERS'
EQUITY
Liabilities
Interest
bearing
liabilities
Interest
bearing
demand
deposits $ 225,705 $ 4,150 3.71% $ 209,565 $ 3,366 3.24%
Savings
deposits 44,820 398 1.79% 40,209 147 0.74%
Time
deposits 546,634 13,362 4.93% 402,422 8,048 4.03%
Short-term
borrowings 71,930 1,918 5.38% 158,365 3,795 4.83%
Long-term
borrowings
and
subordinated
debentures 209,588 6,013 5.79% 181,971 4,932 5.47%
---------- ------- ---- --------- ------- ----
1,098,677 25,841 4.74% 992,532 20,288 4.12%
Noninterest
bearing
liabilities
Demand
deposits 62,986 64,906
Other
liabilities 11,722 9,850
---------- ----------
Total
liabili-
ties 1,173,385 1,067,288
Shareholders'
equity 83,288 77,177
---------- ----------
Total
liabilities
and
shareholders'
equity $1,256,673 $1,144,465
========== ==========
NET INTEREST
EARNINGS $19,108 $18,084
======= =======
NET INTEREST
YIELD ON
EARNING
ASSETS 3.21% 3.35%
==== ====