Summit Financial Group Reports First Quarter 2013 Results

Q1 2013 Diluted EPS $0.19 Compared to $0.18 in Q1 2012


MOOREFIELD, W.Va., April 25, 2013 (GLOBE NEWSWIRE) -- Summit Financial Group, Inc. ("Company" or "Summit") (Nasdaq:SMMF) today reported first quarter 2013 net income applicable to common shares of $1.60 million, or $0.19 per diluted share, compared to $1.50 million, or $0.18 per diluted share, for the first quarter of 2012. Q1 2013 earnings compared to Q1 2012 were positively impacted by a $1.5 million decrease in combined provision for loan losses and write downs of foreclosed properties, which was partially negated by $1.1 million reduction in realized securities gains.

Excluding from first quarter 2013 nonrecurring items (on a pre-tax basis) consisting of realized securities gains of $42,000, losses on sales of assets of $40,000, charges for other-than-temporary impairment ("OTTI") of securities of $54,000 and write-downs of foreclosed properties of $929,000, pro forma first quarter 2013 earnings were approximately $2.21 million, or $0.26 per diluted share. Excluding from first quarter 2012 nonrecurring realized securities gains of $1.2 million, losses on sales of assets of $77,000, OTTI of securities of $229,000, and write-downs of foreclosed properties of $1.9 million, pro forma earnings of $2.17 million would have resulted, or $0.25 per diluted share.

Highlights for Q1 2013 include:

  • Achieved eighth consecutive quarter of positive quarterly earnings.
  • Nonperforming assets declined for the fifth consecutive quarter, reaching its lowest level since Q1 2011.
  • Net interest margin increased 4 basis points quarter over quarter and 3 basis points compared to Q1 2012.
  • Achieved $7.7 million growth in gross loans.
  • Recorded charges of $929,000 and $54,000, respectively, to write-down foreclosed properties and to recognize OTTI of securities, compared to $1.91 million and $229,000, respectively, in Q1 2012.
  • Noninterest expenses remained well-controlled, increasing less than 1% compared to Q1 2012.
  • Summit's leverage capital ratio is at its highest level in seven years and its total risk-based capital ratio is at highest level in thirteen years.

H. Charles Maddy III, President and Chief Executive Officer of Summit, commented, "Our continued progress towards: achieving improved earnings performance, reducing our portfolio of problem assets, and strengthening our capital levels proceeds as planned. Reducing our portfolio of problem assets remains top priority, and we are very pleased to have reduced nonperforming assets in each of the five most recent quarters. While our disposal of foreclosed properties is still not at the pace we would like, we are encouraged to observe improvement in local real estate market conditions during the quarter just ended. We anticipate earnings may continue to fluctuate from quarter-to-quarter in the near term as our foreclosed properties are re-appraised and written-down to estimated fair values on an ongoing basis."

Results from Operations

Total revenue for first quarter 2013, consisting of net interest income and noninterest income, was $11.5 million compared to $11.7 million for the first quarter 2012. Total revenue excluding nonrecurring items (as enumerated above) was $12.5 million for first quarter 2013 compared to $12.8 million in the prior-year quarter.

For the first quarter of 2013, net interest income was $9.8 million, a decrease of 2.6 percent from the $10.0 million reported in the prior-year first quarter and decreased $138,000 compared to the linked quarter, reflecting reduced volumes of interest earning assets. The net interest margin for first quarter 2013 was 3.23 percent compared to 3.20 percent for the year-ago quarter, and 3.19 percent for the linked quarter, principally as result of maturing wholesale funds reissued at substantially lower rates which more than offset reductions in the yields on loans and securities.

Noninterest income, consisting primarily of insurance commissions from Summit's insurance agency subsidiary and service fee income from community banking activities, for first quarter 2013 was $1.78 million compared to $1.70 million for the comparable period of 2012. Excluding nonrecurring items (as enumerated above), noninterest income was $2.76 million for first quarter 2013, compared to $2.76 million reported for first quarter 2012.

The provision for loan losses was $1.5 million for the first quarter of 2013 compared to $2.5 million for the linked quarter and $2.0 million for the year-ago quarter.

Noninterest expense continues to be well-controlled. Total noninterest expense increased 0.7% to $7.59 million compared to $7.54 million for the prior-year first quarter. Our cost-saving initiatives continue and their impact remains beneficial.

Balance Sheet

At March 31, 2013, total assets were $1.39 billion, an increase of $3.1 million, or 0.2 percent since December 31, 2012. Total loans, net of unearned fees and allowance for loan losses, were $945.7 million at March 31, 2013, up $8.6 million, or 0.9 percent, from the $937.2 million reported at year-end 2012.

Commercial loans increased $1.0 million or 1.2 percent and commercial real estate ("CRE") increased $10.1 million, or 2.3 percent. All other loan categories declined since year-end 2012. Residential real estate declined $965,000, or 0.3 percent, while construction and development ("C&D") loans declined $1.0 million, or 1.3 percent.

At March 31, 2013, deposits were $1.07 billion, an increase of $39.2 million, or 3.8 percent, since year end 2012. During first quarter 2013, savings and time deposits grew by $4.5 million and $36.5 million, respectively, or 2.4 percent and 6.5 percent, respectively. Long-term borrowings and subordinated debentures declined by 16.6 percent since year end 2012, as the Company paid down $39.7 million in maturing borrowings, which was funded by issuance of long-term time deposits.

Asset Quality

As of March 31, 2013, nonperforming assets ("NPAs"), consisting of nonperforming loans, foreclosed properties, and repossessed assets, were $90.9 million, or 6.54 percent of assets. This compares to $94.0 million, or 6.77 percent of assets at the linked quarter, and $108.6 million, or 7.52 percent of assets, at first quarter 2012.

First quarter 2013 net loan charge-offs were $2.4 million, or 0.99 percent of average loans annualized; while adding $1.5 million to its allowance for loan losses. The allowance for loan losses stood at $17.0 million, or 1.77 percent of total loans at March 31, 2013, compared to 1.88 percent at year-end 2012.

Capital Adequacy

Shareholders' equity was $110.0 million as of March 31, 2013 compared to $108.6 million December 31, 2012.

Summit's depository institution, Summit Community Bank, Inc. (the "Bank"), remains well in excess of regulatory requirements for a "well capitalized" institution at March 31, 2013. The Bank's total risk-based capital ratio improved to 15.2 percent at March 31, 2013 compared to 15.0 percent at December 31, 2012, while its Tier 1 leverage capital ratio improved to 10.0 from the 9.8 percent reported at December 31, 2012. Total common shares outstanding as of March 31, 2013 were 7,437,472.

About the Company

Summit Financial Group, Inc. is a $1.39 billion financial holding company headquartered in Moorefield, West Virginia. Summit provides community banking services primarily in the Eastern Panhandle and South Central regions of West Virginia and the Northern and Shenandoah Valley regions of Virginia, through its bank subsidiary, Summit Community Bank, Inc., which operates fifteen banking locations. Summit also operates Summit Insurance Services, LLC in Moorefield, West Virginia and Leesburg, 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 GAAP performance measures to exclude the effects of realized and unrealized securities gains and losses, gains/losses on sales of assets, and write-downs of foreclosed properties to estimated fair value included in its Statements of Income. Management deems 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 --- Q1 2013 vs Q1 2012
       
   For the Quarter Ended   Percent 
 Dollars in thousands  3/31/2013 3/31/2012  Change 
 Condensed Statements of Income       
 Interest income       
 Loans, including fees   $ 12,904  $ 14,365 -10.2%
 Securities   1,664  2,421 -31.3%
 Other   1  11 -90.9%
 Total interest income   14,569  16,797 -13.3%
 Interest expense       
 Deposits   2,768  3,713 -25.5%
 Borrowings   2,043  3,066 -33.4%
 Total interest expense   4,811  6,779 -29.0%
 Net interest income   9,758  10,018 -2.6%
 Provision for loan losses   1,500  2,001 -25.0%
 Net interest income after provision for loan losses   8,258  8,017 3.0%
       
 Noninterest income       
 Insurance commissions   1,184  1,158 2.2%
 Service fees related to deposit accounts   1,012  1,014 -0.2%
 Realized securities gains   42  1,165 -96.4%
 Gain (loss) on sale of assets   (40)  (77) -48.1%
 Other-than-temporary impairment of securities   (54)  (229) -76.4%
 Write-downs of foreclosed properties   (929)  (1,912) -51.4%
 Other income   564  584 -3.4%
Total noninterest income  1,779  1,703 4.5%
 Noninterest expense       
 Salaries and employee benefits  4,117  3,901 5.5%
 Net occupancy expense  457  479 -4.6%
 Equipment expense  598  594 0.7%
 Professional fees  251  304 -17.4%
 FDIC premiums  540  522 3.4%
 Foreclosed properties expense  279  374 -25.4%
 Other expenses  1,351  1,365 -1.0%
Total noninterest expense  7,593  7,539 0.7%
 Income before income taxes   2,444  2,181 12.1%
 Income taxes   651  483 34.8%
 Net income   1,793  1,698 5.6%
 Preferred stock dividends   194  194 0.0%
       
Net income applicable to common shares  $ 1,599  $ 1,504 6.3%
 
 
SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF)
Quarterly Performance Summary --- Q1 2013 vs Q1 2012
     
   For the Quarter Ended   Percent 
  3/31/2013 3/31/2012  Change 
Per Share Data       
Earnings per common share       
Basic   $ 0.22  $ 0.20 10.0%
Diluted   $ 0.19  $ 0.18 5.6%
       
Average shares outstanding       
Basic   7,432,254  7,425,472 0.1%
Diluted   9,613,886  9,600,017 0.1%
       
Performance Ratios       
Return on average equity (A)  6.55% 6.49% 0.9%
Return on average assets  0.52% 0.47% 10.6%
Net interest margin  3.23% 3.20% 0.9%
Efficiency ratio (B)  56.00% 53.71% 4.3%

NOTE (A) – Net income divided by total shareholders' equity.

NOTE (B) – 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  3/31/2013 12/31/2012 9/30/2012 6/30/2012 3/31/2012
 Condensed Statements of Income           
 Interest income           
 Loans, including fees   $ 12,904  $ 13,512  $ 13,648  $ 14,041  $ 14,365
 Securities   1,664  1,703  1,934  2,225  2,421
 Other   1  5  7  12  11
 Total interest income   14,569  15,220  15,589  16,278  16,797
 Interest expense           
 Deposits   2,768  3,017  3,067  3,360  3,713
 Borrowings   2,043  2,307  2,587  2,947  3,066
 Total interest expense   4,811  5,324  5,654  6,307  6,779
 Net interest income   9,758  9,896  9,935  9,971  10,018
 Provision for loan losses   1,500  2,498  2,000  2,001  2,001
 Net interest income after provision for loan losses   8,258  7,398  7,935  7,970  8,017
           
 Noninterest income           
 Insurance commissions   1,184  1,082  1,052  1,141  1,158
 Service fees related to deposit accounts   1,012  1,092  1,074  1,075  1,014
 Gain (loss) on sale of assets   42  (94)  16  (523)  (77)
 Realized securities gains (losses)   (40)  103  760  320  1,165
 Other-than-temporary impairment of securities   (54)  (76)  (39)  (106)  (229)
 Write-downs of foreclosed properties   (929)  (748)  (2,571)  (1,631)  (1,912)
 Other income   564  644  514  552  584
Total noninterest income  1,779  2,003  806  828  1,703
 Noninterest expense           
 Salaries and employee benefits  4,117  3,799  3,940  3,892  3,901
 Net occupancy expense  457  495  476  490  479
 Equipment expense  598  576  576  603  594
 Professional fees  251  314  289  242  316
 FDIC premiums  540  535  510  500  522
 Foreclosed properties expense  279  269  356  233  362
 Other expenses  1,351  1,434  1,325  1,335  1,365
Total noninterest expense  7,593  7,422  7,472  7,295  7,539
 Income before income taxes   2,444  1,979  1,269  1,503  2,181
 Income taxes   651  (126)  272  590  483
 Net income   1,793  2,105  997  913  1,698
 Preferred stock dividends   194  194  194  194  194
Net income applicable to common shares  $ 1,599  $ 1,911  $ 803  $ 719  $ 1,504
 
 
SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF)
Five Quarter Performance Summary
         
   For the Quarter Ended 
  3/31/2013 12/31/2012 9/30/2012 6/30/2012 3/31/2012
 Per Share Data           
 Earnings per common share           
 Basic   $ 0.22  $ 0.26  $ 0.11  $ 0.10  $ 0.20
 Diluted   $ 0.19  $ 0.22  $ 0.10  $ 0.09  $ 0.18
           
 Average shares outstanding           
 Basic   7,432,254  7,425,472  7,425,472  7,425,472  7,425,472
 Diluted   9,613,886  9,601,435  9,601,278  8,927,802  9,600,017
           
 Performance Ratios           
 Return on average equity (A)  6.55% 7.76% 3.71% 3.44% 6.49%
 Return on average assets  0.52% 0.60% 0.28% 0.25% 0.47%
 Net interest margin  3.23% 3.19% 3.17% 3.20% 3.20%
 Efficiency ratio (B)  56.00% 54.00% 54.37% 53.13% 53.71%

NOTE (A) – Net income divided by average total shareholders' equity.

NOTE (B) – 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  3/31/2013 12/31/2012 9/30/2012 6/30/2012 3/31/2012
           
Assets           
Cash and due from banks  $ 3,906  $ 3,833  $ 3,752  $ 4,266  $ 4,059
Interest bearing deposits other banks  7,915  10,969  13,441  14,288  26,855
Securities  283,054  281,539  291,992  289,151  292,002
Loans, net  945,741  937,168  940,933  948,294  957,797
Property held for sale  54,625  56,172  56,033  60,069  61,584
Premises and equipment, net  21,023  21,129  21,265  21,470  21,756
Intangible assets  8,212  8,300  8,387  8,475  8,563
Cash surrender value of life insurance policies  29,791  29,553  30,065  29,808  29,559
Other assets  35,931  38,441  38,218  40,620  42,190
 Total assets  $ 1,390,198  $ 1,387,104  $ 1,404,086  $ 1,416,441  $ 1,444,365
           
Liabilities and Shareholders' Equity           
Deposits  $ 1,066,318  $ 1,027,125  $ 1,027,307  $ 1,001,669  $ 1,011,139
Short-term borrowings  5,960  3,958  20,957  10,957  15,956
Long-term borrowings and subordinated debentures  199,977  239,657  240,133  290,024  303,510
Other liabilities  7,928  7,809  8,361  8,084  9,361
Shareholders' equity  110,015  108,555  107,328  105,707  104,399
 Total liabilities and shareholders' equity  $ 1,390,198  $ 1,387,104  $ 1,404,086  $ 1,416,441  $ 1,444,365
           
Book value per common share (A)  $ 11.45  $ 11.31  $ 11.20  $ 11.01  $ 10.87
Tangible book value per common share (A)  $ 10.60  $ 10.44  $ 10.33  $ 10.13  $ 9.98
Tangible equity / Tangible assets 7.4% 7.3% 7.1% 6.9% 6.7%

NOTE (A) – Assumes conversion of convertible preferred stock

 
SUMMIT FINANCIAL GROUP INC. (NASDAQ: SMMF)
Regulatory Capital Ratios
           
  3/31/2013 12/31/2012 9/30/2012 6/30/2012 3/31/2012
Summit Financial Group, Inc.          
Total Risk Based Capital 14.1% 14.0% 13.8% 13.6% 13.3%
Tier 1 Risk Based Capital 11.8% 11.6% 11.3% 11.1% 10.8%
Tier 1 Leverage Ratio 8.4% 8.3% 8.0% 7.9% 7.8%
           
Summit Community Bank, Inc.          
Total Risk Based Capital 15.2% 15.0% 14.6% 14.3% 14.0%
Tier 1 Risk Based Capital 13.9% 13.7% 13.3% 13.1% 12.7%
Tier 1 Leverage Ratio 10.0% 9.8% 9.5% 9.3% 9.1%
 
 
SUMMIT FINANCIAL GROUP INC. (NASDAQ: SMMF)
Loan Composition
           
Dollars in thousands 3/31/2013 12/31/2012 9/30/2012 6/30/2012 3/31/2012
           
Commercial  $ 86,877  $ 85,829  $ 88,997  $ 92,060  $ 99,386
Commercial real estate          
Owner occupied  151,942  154,252  150,090  152,347  153,528
Non-owner occupied  288,475  276,082  279,132  280,891  275,727
Construction and development          
Land and development  76,277  79,335  82,857  84,383  88,212
Construction  5,782  3,772  2,087  1,793  2,148
Residential real estate          
Non-jumbo  213,965  216,714  215,584  217,321  219,485
Jumbo  62,849  61,567  62,748  61,962  62,836
Home equity  53,765  53,263  53,455  51,692  50,884
Consumer  19,638  20,586  21,290  21,212  21,573
Other  3,191  3,701  2,513  2,523  2,540
Total loans, net of unearned fees  962,761  955,101  958,753  966,184  976,319
Less allowance for loan losses  17,020  17,933  17,820  17,890  18,522
Loans, net  $ 945,741  $ 937,168  $ 940,933  $ 948,294  $ 957,797
 
 
SUMMIT FINANCIAL GROUP INC. (NASDAQ: SMMF)
Deposit Composition
           
Dollars in thousands 3/31/2013 12/31/2012 9/30/2012 6/30/2012 3/31/2012
Non interest bearing checking  $ 93,125  $ 100,592  $ 96,764  $ 96,172  $ 87,916
Interest bearing checking  181,327  175,706  177,236  164,867  172,506
Savings  197,587  193,039  197,610  204,509  212,402
Time deposits  594,279  557,788  555,697  536,121  538,315
Total deposits  $ 1,066,318  $ 1,027,125  $ 1,027,307  $ 1,001,669  $ 1,011,139
 
 
SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF)
Asset Quality Information
           
   For the Quarter Ended 
Dollars in thousands  3/31/2013 12/31/2012 9/30/2012 6/30/2012 3/31/2012
Gross loan charge-offs  $ 2,497  $ 2,545  $ 2,142  $ 2,790  $ 1,340
Gross loan recoveries  (84)  (160)  (73)  (156)  (149)
Net loan charge-offs  $ 2,413  $ 2,385  $ 2,069  $ 2,634  $ 1,191
           
Net loan charge-offs to average loans (annualized) 1.00% 0.99% 0.86% 1.08% 0.49%
Allowance for loan losses  $ 17,020  $ 17,933  $ 17,820  $ 17,890  $ 18,523
Allowance for loan losses as a percentage of period end loans 1.77% 1.88% 1.86% 1.85% 1.89%
           
Nonperforming assets:          
Nonperforming loans          
Commercial  $ 4,763  $ 5,002  $ 5,343  $ 6,476  $ 2,477
Commercial real estate  1,525  2,556  2,803  3,536  4,282
Commercial construction and development  --  --  428  662  799
Residential construction and development  13,076  13,641  16,333  16,735  21,375
Residential real estate  16,869  16,522  18,809  18,550  17,754
Consumer  72  55  88  78  81
Total nonperforming loans  36,305  37,776  43,804  46,037  46,768
Foreclosed properties          
Commercial  --  --  --  --  --
Commercial real estate  11,779  11,835  11,802  12,029  14,703
Commercial construction and development  16,670  17,597  17,683  18,632  17,377
Residential construction and development  21,929  23,074  23,769  26,014  25,724
Residential real estate  4,247  3,666  2,779  3,393  3,780
Total foreclosed properties  54,625  56,172  56,033  60,068  61,584
Other repossessed assets  19  6  --  --  266
Total nonperforming assets  $ 90,949  $ 93,954  $ 99,837  $ 106,105  $ 108,618
           
Nonperforming loans to period end loans 3.77% 3.96% 4.57% 4.76% 4.79%
Nonperforming assets to period end assets 6.54% 6.77% 7.11% 7.49% 7.52%
 
 
Loans Past Due 30-89 Days
   For the Quarter Ended 
 In thousands  3/31/2013 12/31/2012 9/30/2012 6/30/2012 3/31/2012
           
Commercial  $ 27  $ 180  $ 874  $ 300  $ 689
Commercial real estate  2,161  437  1,264  1,787  2,776
Construction and development  64  --  56  293  518
Residential real estate  4,522  6,170  4,346  5,763  5,509
Consumer  277  326  313  408  242
 Total  $ 7,051  $ 7,113  $ 6,853  $ 8,551  $ 9,734
 
 
SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF)
Average Balance Sheet, Interest Earnings & Expenses and Average Rates
Q1 2013 vs Q1 2012
  Q1 2013 Q1 2012
  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  $ 960,509  $ 12,833 5.42%  $ 973,862  $ 14,279 5.90%
Tax-exempt  5,965  106 7.21%  7,248  130 7.21%
Securities            
Taxable  216,306  1,030 1.93%  234,973  1,699 2.91%
Tax-exempt  79,147  961 4.92%  71,559  1,092 6.14%
Interest bearing deposits other banks and Federal funds sold  7,510  1 0.05%  24,882  11 0.18%
Total interest earning assets  1,269,437  14,931 4.77%  1,312,524  17,211 5.27%
             
Noninterest earning assets            
Cash & due from banks  4,240      4,073    
Premises & equipment  21,101      21,978    
Other assets  114,701      122,188    
Allowance for loan losses  (17,572)      (18,251)    
Total assets  $ 1,391,907      $ 1,442,512    
             
LIABILITIES AND SHAREHOLDERS' EQUITY            
             
Liabilities            
Interest bearing liabilities            
Interest bearing demand deposits  $ 174,724  $ 70 0.16%  $ 160,147  $ 82 0.21%
Savings deposits  195,556  309 0.64%  211,783  381 0.72%
Time deposits  574,545  2,388 1.69%  550,689  3,250 2.37%
Short-term borrowings  27,834  17 0.25%  14,390  7 0.20%
Long-term borrowings and subordinated debentures  209,255  2,027 3.93%  305,027  3,059 4.03%
Total interest bearing liabilities  1,181,914  4,811 1.65%  1,242,036  6,779 2.20%
             
Noninterest bearing liabilities            
Demand deposits  92,926      87,000    
Other liabilities  7,653      8,850    
Total liabilities  1,282,493      1,337,886    
             
Shareholders' equity - preferred  9,325      9,326    
Shareholders' equity - common  100,089      95,300    
Total liabilities and shareholders' equity  $ 1,391,907      $ 1,442,512    
             
NET INTEREST EARNINGS    $ 10,120      $ 10,432  
             
NET INTEREST MARGIN     3.23%     3.20%
 
 
SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF)
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures
       
   For the Quarter Ended 
 Dollars in thousands  3/31/2013 3/31/2012 12/31/2012
       
Net income applicable to common shares - excluding realized securities gains, gains/losses on sales of assets, other-than-temporary impairment of securities and write-downs of foreclosed properties   $ 2,217  $ 2,167  $ 2,424
       
Realized securities gains   42  1,165  103
Applicable income tax effect   (16)  (431)  (38)
Gain (loss) on sale of assets   (40)  (77)  (94)
Applicable income tax effect   15  28  35
Other-than-temporary impairment of securities   (54)  (229)  (76)
Applicable income tax effect   20  85  28
Write-downs foreclosed properties   (929)  (1,912)  (748)
Applicable income tax effect   344  707  277
   (618)  (663)  (513)
GAAP net income applicable to common shares   $ 1,599  $ 1,504  $ 1,911
       
       
Diluted earnings per common share - excluding realized securities gains, gains/losses on sales of assets, other-than-temporary impairment of securities and write-downs of foreclosed properties   $ 0.26  $ 0.25  $ 0.28
       
 Realized securities gains   --   0.12  0.01
 Applicable income tax effect   --   (0.04)  -- 
 Gain (loss) on sale of assets   --   (0.01)  (0.01)
 Applicable income tax effect   --   --   -- 
 Other-than-temporary impairment of securities   (0.01)  (0.02)  (0.01)
 Applicable income tax effect   --   0.01  -- 
 Write-downs of foreclosed properties   (0.10)  (0.20)  (0.08)
 Applicable income tax effect   0.04  0.07  0.03
   (0.07)  (0.07)  (0.06)
 GAAP diluted earnings per common share   $ 0.19  $ 0.18  $ 0.22
 
 
SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF)
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures
       
   For the Quarter Ended 
 Dollars in thousands  3/31/2013 3/31/2012 12/31/2012
       
Total revenue - excluding realized securities gains, gains/losses on sales of assets, other-than-temporary impairment of securities and write-downs of foreclosed properties   $ 12,518  $ 12,773  $ 12,714
       
Realized securities gains  42  1,165  103
Gain (loss) on sale of assets   (40)  (77)  (94)
Other-than-temporary impairment of securities   (54)  (229)  (76)
Write-downs of foreclosed properties   (929)  (1,912)  (748)
   (981)  (1,053)  (815)
GAAP total revenue   $ 11,537  $ 11,720  $ 11,899
       
       
Total noninterest income - excluding realized securities gains, gains/losses on sales of assets, other-than-temporary impairment of securities and write-downs of foreclosed properties   $ 2,760  $ 2,755  $ 2,818
       
Realized securities gains  42  1,165  103
Gain (loss) on sale of assets   (40)  (77)  (94)
Other-than-temporary impairment of securities   (54)  (229)  (76)
Write-downs of foreclosed properties   (929)  (1,912)  (748)
   (981)  (1,053)  (815)
GAAP total noninterest income   $ 1,779  $ 1,702  $ 2,003


            

Contact Data