smmf20231027g_425.htm

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 OR 15(d) of the Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported):  October 26, 2023

 

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Summit Financial Group, Inc.

(Exact name of registrant as specified in its charter)

     

West Virginia

0-16587

55-0672148

(State or other jurisdiction of

(Commission File Number)

(IRS Employer

incorporation or organization)

 

Identification No.)

 

300 North Main Street

 

Moorefield West Virginia

26836

(Address of principal executive offices)

(Zip Code)

 

(304)530-1000

(Registrant's telephone number, including area code)

 

Not Applicable

(Former name or address, if changed since last report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, Par Value $2.50 per share

SMMF

NASDAQ Global Select Market

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 or Rule 12b-2 of the Securities Exchange Act of 1934.

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

 

 

 

 

Item 2.02. Results of Operations and Financial Condition.

 

On October 26, 2023, Summit Financial Group, Inc. (“Summit”) issued a News Release announcing its earnings for the three and nine months ended September 30, 2023. This News Release is furnished as Exhibit 99.1 and is incorporated herein by reference.

 

 

 

Item 9.01 Financial Statements and Exhibits

 

(d) Exhibits

 

Exhibit Number

Description

99.1

News Release issued on October 26, 2023

104 Cover Page Interactive Data File (Embedded within the Inline XBRL document)

 

 

 

SIGNATURES

 

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

SUMMIT FINANCIAL GROUP, INC.

   

Date: October 27, 2023

By: /s/ Julie R. Markwood 

 

Julie R. Markwood

 

Executive Vice President and Chief Accounting Officer

 

 
ex_587121.htm

EXHIBIT 99.1

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FOR RELEASE 6:00 AM ET, October 26, 2023

 

Contact:    Robert S. Tissue, Executive Vice President & CFO

Telephone:    (304) 530-0552

Email:        rtissue@summitfgi.com

 

SUMMIT FINANCIAL GROUP REPORTS EARNINGS OF $1.09 PER SHARE FOR THIRD QUARTER 2023

 

MOOREFIELD, WV – October 26, 2023 (GLOBE NEWSWIRE) – Summit Financial Group, Inc. (“Company” or “Summit”) (NASDAQ: SMMF) today reported financial results for the third quarter of 2023, highlighting robust core operating performance marked by continued notable strength in its net interest margin. The Company’s continued success underscores its position as an exceptional community bank, reflecting a sound strategy and solid operational execution.

 

The Company, which serves commercial and individual clients across West Virginia, the Washington D.C. metropolitan area, Virginia, Kentucky, the Eastern Shore of Maryland and Delaware through Summit Community Bank, Inc., reported net income applicable to common shares of $16.1 million, or $1.09 per diluted share, for the third quarter of 2023, as compared to $7.98 million, or $0.54 per diluted share, for the second quarter of 2023 and $14.2 million, or $1.11 per diluted share, for the third quarter of 2022. Higher earnings in Q3 2023 were driven primarily by lower provision for credit losses and acquisition-related expenses compared to Q2 2023 as Q2 included significant acquisition-related expenses attributable to the acquisition of PSB Holding Corp. and its bank subsidiary, Provident State Bank, Inc. (“PSB”) and higher provision for credit losses recorded on purchased non-credit deteriorated (“non-PCD”) loans from PSB and on a nonperforming commercial real estate participation loan. 

 

"We are extremely encouraged by our achievements in the third quarter of 2023, as our strategic initiatives have continued to bear fruit in several critical areas," stated H. Charles Maddy III, President and Chief Executive Officer of Summit Financial Group. "Our core operational performance was robust, demonstrated by favorable net interest margin and a marked growth in our core deposits, reflecting the strong confidence our customers place in us."

 

Mr. Maddy continued, "A pivotal highlight of this quarter was the announcement of our merger of peers with Burke & Herbert Financial Services Corp. (“Burke & Herbert”) headquartered in Alexandria, Virginia, a renowned financial institution located in one of the best banking markets in the U.S. This significant step forward is not just a growth strategy but a commitment to expanding our service excellence and community impact. We anticipate this consolidation to be a cornerstone event in our history, positioning us for substantial opportunities in 2024 and beyond. Mr. Maddy concluded, "Looking ahead as we edge closer to the culmination of our strategic merger with Burke & Herbert, we remain committed to enhancing shareholder value, driven by our foundational strengths and synergistic growth plans. With our dedicated team, resilient strategies and community trust, we are optimistic and geared up for the opportunities and challenges ahead."

 

 

 

Key Highlights for the Third Quarter of 2023

 

Summit Financial Group, Inc. entered into an Agreement and Plan of Reorganization with Burke & Herbert pursuant to which Summit will merge with and into Burke & Herbert, with Burke & Herbert as the surviving entity. Immediately following the Merger, Summit Community Bank, Inc., Summit’s wholly owned banking subsidiary, will be merged with  Burke & Herbert’s wholly-owned banking subsidiary, Burke & Herbert Bank & Trust Company, with B&H Bank the surviving bank. The transaction is expected to close in Q1 2024.

 

Our net interest margin (“NIM”) decreased 1 basis point to 3.88 percent from the linked quarter and increased by 4 basis points from the prior-year quarter.

 

Summit's core deposits experienced modest growth in the third quarter of 2023, up 1.1 percent from the linked quarter, showcasing customer confidence and a robust deposit base.

 

The third quarter saw a modest increase in total loans, excluding mortgage warehouse lines of credit and acquired loans, registering an increase of 1.47 percent (5.87 percent annualized). This performance was further underscored by a year-over-year growth of 4.87 percent, a testament to our successful lending approach and effective customer acquisition.

 

The Company’s provision for credit losses totaled $1.25 million in the third quarter of 2023 compared to $8.00 million in the linked quarter. Included in the Company’s Q2 2023 provision for credit losses was $3.01 million to establish an allowance on non-PCD loans acquired from PSB in accordance with the Current Expected Credit Loss accounting standard and $3.66 million to recognize an allowance on a nonperforming commercial real estate loan participation.

 

Summit achieved an efficiency ratio of 47.15 percent, a marked improvement from 47.90 percent in the linked quarter, indicating optimized use of resources.

 

Annualized non-interest expense ratio decreased to 2.10 percent of average assets from 2.41 percent in the previous quarter and increased from 2.01 percent in the same quarter last year.  Excluding acquisition-related expenses, annualized non-interest expense would have been 2.01 percent of average assets in Q3 2023 and 2.05 percent of average assets for Q2 2023.

 

Results from Operations

 

Net interest income totaled $41.3 million in the third quarter of 2023, marking an increase of 21.0 percent from the prior-year third quarter and 2.4 percent from the linked quarter. This robust growth is attributable primarily to our strategic expansion of the loan portfolio and optimizations in investment allocations. NIM for the third quarter 2023 was 3.88 percent compared to 3.89 percent for the linked quarter and 3.84 percent for the prior-year quarter, representing a stable margin performance despite volatile interest rates.

 

Summit recorded a $1.25 million provision for credit losses in the third quarter of 2023.  The provision for credit losses was $8.0 million for the linked quarter, which included $3.01 million to establish an allowance on non-PCD loans acquired from PSB in accordance with the CECL accounting standard and $3.66 million, an allowance for a nonperforming loan participation with a regional bank secured by a shopping complex at the fair value of its collateral. The provision for credit losses was $1.5 million in the third quarter of 2022.

 

 

 

Noninterest income, consisting primarily of service fee income from community banking activities and trust and wealth management fees, for third quarter 2023 was $5.27 million compared to $5.42 million for the linked quarter and $4.89 million for the comparable period of 2022. The Company recorded realized securities losses on debt securities of $12,000 in the third quarter of 2023 and $211,000 in the linked quarter. In addition, the Company recognized net gains on equity investments of $180,000 in the third quarter 2023 compared to $150,000 in the linked quarter. Excluding gains and losses from debt securities and equity investments, the combined revenue from net interest income and non-interest income for Q3 2023 rose to $46.4 million. This represents an increase of 1.3 percent from $45.8 million in the linked quarter and a substantial 19.0 percent growth from $39.0 million recorded in the third quarter of 2022.

 

Total noninterest expense decreased to $24.2 million in the third quarter of 2023, down 11.6 percent from $27.3 million in the linked quarter primarily due to fewer acquisition-related expenses in the third quarter. Conversely, there was a 25.7 percent hike from $19.2 million for the same quarter in the prior year, attributed mainly to the assimilation of operational costs from the newly integrated PSB operations.

 

Salary and benefit expenses were $12.0 million in the third quarter of 2023, a nominal decrease from $12.2 million in the preceding quarter but up from $10.2 million in the same period last year. The year-over-year increase was primarily due to the PSB acquisition and higher group health insurance premiums.

 

Acquisition-related expenses were $1.11 million for Q3 2023, representing legal, due diligence and fairness opinion costs relative to the Burke & Herbert merger, compared to $4.16 million for the linked quarter, consisting of contract termination costs, executive and employee severance benefits and legal and consulting fees associated with the PSB acquisition, and none during Q3 2022.

 

Summit’s efficiency ratio improved, registering 47.15 percent in the third quarter of 2023, a decrease from 47.95 percent in the third quarter of 2022, and marginally better than the 47.90 percent in the linked quarter. Concurrently, the non-interest expense to average assets ratio was optimized to 2.10 percent, compared to 2.41 percent in the previous quarter, indicating enhanced operational efficiency despite the expanded asset base post-PSB acquisition.

 

Balance Sheet

 

As of September 30, 2023, total assets were $4.6 billion, an increase of $687.5 million, or 17.6 percent since December 31, 2022.  Excluding acquired PSB assets, total assets increased by $119.2 million, or 3.0 percent since December 31, 2022.

 

Total loans net of unearned fees increased to $3.6 billion as of September 30, 2023, from $3.1 billion at December 31, 2022, and increased 17.0 percent from the third quarter of 2022. Total loans, excluding those related to mortgage warehouse lending and acquired loans, reached $3.1 billion on September 30, 2023. This represents an increase of 1.65 percent (or 6.59 percent when annualized) during the quarter just ended.

 

 

 

Total commercial loans, including commercial and industrial (C&I) and commercial real estate (CRE), increased 0.3 percent (1.1 percent annualized) during the third quarter to $2.3 billion as of September 30, 2023.

 

Residential real estate and consumer lending totaled $737.2 million on September 30, 2023, reflecting an increase of 0.75 percent (3.0 percent annualized) during the third quarter.

 

As of September 30, 2023, mortgage warehouse lines of credit, sourced solely from a participation arrangement with a large regional bank, totaled $114.7 million compared to $130.4 million as of December 31, 2022, and $194.7 million at the year-ago period end.

 

Deposits totaled $3.8 billion on September 30, 2023, a 0.5 percent increase during the third quarter. Core deposits increased 1.1 percent during the third quarter 2023 to $3.7 billion.  Adjusted uninsured deposits (excluding uninsured public deposits otherwise secured or collateralized as required by law) were 34.2 percent of total deposits at September 30, 2023 compared to 29.8 percent at year-end 2022 and 24.4 percent at the year-ago period end.

 

Total shareholders’ equity was $416.5 million as of September 30, 2023, compared to $354.5 million at December 31, 2022. Summit paid a quarterly common dividend of $0.22 per share in the third quarter of 2023.

 

Tangible Book Value Per Share (“TBVPS”) increased by $0.29 to $22.22 during the third quarter of 2023, representing a 1.3 percent increase. This increase was primarily due to retained earnings which more than offset the decline in the fair value of available for sale securities reflected in accumulated other comprehensive loss. Summit had 14,674,852 outstanding common shares at September 30, 2023, compared to 12,783,646 at year-end 2022. 

 

As announced in the first quarter of 2020, the Board of Directors authorized the open market repurchase of up to 750,000 shares of the issued and outstanding shares of Summit's common stock, of which 323,577 shares have been repurchased to date. The timing and quantity of stock purchases under this repurchase plan are at the discretion of management. During the third quarter of 2023, no shares of Summit’s common stock were repurchased under the Plan.

 

Asset Quality

 

The Company recorded net loan charge-offs (“NCOs”) of $118,000 during the third quarter 2023, representing 0.01 percent of average loans annualized, compared to $3.8 million, representing 0.44 percent of average loans annualized, in the linked quarter. NCOs of $8,000 represented 0.0 percent of average loans annualized in the year-ago period.

 

Summit’s allowance for loan credit losses was $47.2 million on September 30, 2023, $45.7 million at the end of the linked quarter, and $36.8 million on September 30, 2022. As of September 30, 2023, the allowance for loan credit losses stood at 1.31 percent of total loans, reflecting a slight increase compared to the rate of 1.26 percent recorded as of December 31, 2022.  In terms of the allowance's coverage, it represented 367.7 percent of nonperforming loans at September 30, 2023, in contrast to the figure of 497.2 percent at December 31, 2022.

 

 

 

Summit’s allowance for credit losses on unfunded loan commitments was $6.91 million as of September 30, 2023, compared to $7.33 million at the end of the linked quarter. During the most recent quarter, the allowance for credit losses on unfunded loan commitments decreased by $420,000, primarily due to a reduction in unfunded loan balances.

 

As of September 30, 2023, nonperforming assets (“NPAs”), consisting of nonperforming loans, foreclosed properties, and repossessed assets, totaled $17.4 million, or 0.38 percent of assets, compared to NPAs of $12.9 million, or 0.33 percent of assets at year-end 2022.

 

About the Company

 

Summit Financial Group, Inc. is the $4.6 billion financial holding company for Summit Community Bank, Inc. Its talented bankers serve commercial and individual clients throughout West Virginia, the Washington, D.C. metropolitan area, Virginia, Kentucky, Eastern Shore of Maryland and Delaware. Summit’s focus on in-market commercial lending and providing other business banking services in dynamic markets is designed to leverage its highly efficient operations and core deposits in strong legacy locations. Residential and consumer lending, trust and wealth management, and other retail financial services are offered through convenient digital and mobile banking platforms, including MySummitBank.com and 54 full-service branch locations. More information on Summit Financial Group, Inc. (NASDAQ: SMMF), headquartered in West Virginia’s Eastern Panhandle in Moorefield, is available at SummitFGI.com.

 

 

 

 

Non-GAAP Financial Measures

 

In addition to the results of operations presented in accordance with Generally Accepted Accounting Principles (GAAP), Summits management uses, and this press release contains or references, certain non-GAAP financial measures, such as tangible common equity/tangible assets; efficiency ratio; return on average tangible equity and return on average tangible common equity. Summit believes these financial measures provide information useful to investors in understanding our operational performance and business and performance trends which facilitate comparisons with the performance of others in the financial services industry. Although Summit believes that these non-GAAP financial measures enhance investors' understanding of Summits business and performance, these non-GAAP financial measures should not be considered an alternative to GAAP or are they necessarily comparable to non-GAAP performance measures presented by other companies.

 

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: the effect of  pandemics, including the negative impacts and disruptions on the communities we serve, and the domestic and global economy, which may have an adverse effect on our business; current and future economic and market conditions, including the effects of declines in housing prices, high unemployment rates, U.S. fiscal debt, budget and tax matters, geopolitical matters, and any slowdown in global economic growth; fiscal and monetary policies of the Federal Reserve; future provisions for credit losses on loans and debt securities; changes in nonperforming assets; changes in interest rates and interest rate relationships; demand for products and services; the degree of competition by traditional and non-traditional competitors; the successful integration of operations of our acquisitions; 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; changes in the national and local economies, the impact of natural disasters, extreme weather events, military conflict (including the Russia/Ukraine conflict, the conflict in Israel and surrounding areas, the possible expansion of such conflicts and potential geopolitical consequences), terrorism or other geopolitical events; delays in completing the pending merger of Summit and Burke & Herbert, the failure to obtain necessary regulatory approvals and shareholder approvals or to satisfy any of the other conditions to the merger on a timely basis or at all, the possibility that the anticipated benefits of the merger are not realized when expected or at all, corporate strategies or objectives, including the impact of certain actions and initiatives, anticipated trends in Summit's business, regulatory developments, estimated synergies, cost savings and financial benefits of completed transactions, growth strategies, the inability to realize cost savings or improved revenues or to implement integration plans and other consequences associated with the proposed merger; and the other factors discussed in the Risk Factors section of Summits Annual Report on Form 10K for the year ended December 31, 2022, in the Risk Factors and Managements Discussion and Analysis of Financial Condition and Results of Operations section of Summits Quarterly Report on Form 10Q for the quarters ended March 31, 2023 and June 30, 2023, and other reports Summit files with the SEC. We undertake no obligation to revise these statements following the date of this press release.

 

Additional Information and Where to Find It

 

In connection with the proposed transaction, Burke & Herbert filed a registration statement on Form S-4 with the SEC on October 2, 2023. The registration statement includes a joint proxy statement of Burke & Herbert and Summit, which also constitutes a prospectus of Burke & Herbert, that was declared effective by the SEC on October 16, 2023.  A copy of the joint proxy statement/prospectus has been sent to shareholders of Burke & Herbert and shareholders of Summit seeking certain approvals related to the proposed transaction.

 

The information contained herein does not constitute an offer to sell or a solicitation of an offer to buy any securities or a solicitation of any vote or approval, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. INVESTORS AND SHAREHOLDERS OF BURKE & HERBERT AND SUMMIT AND THEIR RESPECTIVE AFFILIATES ARE URGED TO READ, THE REGISTRATION STATEMENT ON FORM S-4, THE JOINT PROXY STATEMENT/PROSPECTUS INCLUDED WITHIN THE REGISTRATION STATEMENT ON FORM S-4 AND ANY OTHER RELEVANT DOCUMENTS FILED OR TO BE FILED WITH THE SEC IN CONNECTION WITH THE PROPOSED TRANSACTION, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THOSE DOCUMENTS, BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT BURKE & HERBERT, SUMMIT AND THE PROPOSED TRANSACTION. Investors and shareholders will be able to obtain a free copy of the registration statement, including the joint proxy statement/prospectus, as well as other relevant documents filed with the SEC containing information about Burke & Herbert and Summit, without charge, at the SECs website www.sec.gov. Copies of documents filed with the SEC by Burke & Herbert will be made available free of charge in the Investor Relations section of Burke & Herberts website, www.burkeandherbertbank.com, under the heading Financials. Copies of documents filed with the SEC by Summit will be made available free of charge in the News section of Summits website, www.summitfgi.com, under the heading News / Presentations and Events link.

 

Participants in Solicitation

 

Burke & Herbert, Summit, and certain of their respective directors and executive officers may be deemed to be participants in the solicitation of proxies in respect of the proposed transaction under the rules of the SEC. Information regarding Burke & Herberts directors and executive officers is available in its Registration Statement on Form 10, as amended and as ordered effective by the SEC on April 21, 2023. Information regarding Summits directors and executive officers is available in its definitive proxy statement, which was filed with the SEC on March 31, 2023, and certain other documents filed by Summit with the SEC. Other information regarding the participants in the solicitation of proxies in respect of the proposed transaction and a description of their direct and indirect interests, by security holdings or otherwise, will be contained in the joint proxy statement/prospectus and other relevant materials to be filed with the SEC. Free copies of these documents, when available, may be obtained as described in the preceding paragraph.

 

 

 

SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF)

Quarterly Performance Summary (unaudited) -- Q3 2023 vs Q3 2022

 

   

For the Quarter Ended

   

Percent

 

Dollars in thousands

 

9/30/2023

   

9/30/2022

   

Change

 

Statements of Income

                       

Interest income

                       

Loans, including fees

  $ 58,102     $ 38,784       49.8 %

Securities

    6,357       3,497       81.8 %

Other

    235       170       38.2 %

Total interest income

    64,694       42,451       52.4 %

Interest expense

                       

Deposits

    19,924       6,140       224.5 %

Borrowings

    3,497       2,198       59.1 %

Total interest expense

    23,421       8,338       180.9 %
                         

Net interest income

    41,273       34,113       21.0 %

Provision for credit losses

    1,250       1,500       -16.7 %

Net interest income after provision for credit losses

    40,023       32,613       22.7 %
                         

Noninterest income

                       

Trust and wealth management fees

    819       725       13.0 %

Mortgage origination revenue

    172       538       -68.0 %

Service charges on deposit accounts

    1,775       1,550       14.5 %

Bank card revenue

    1,907       1,639       16.4 %

Net gains on equity investments

    180       283       -36.4 %

Net realized losses on debt securities

    (12 )     (242 )     -95.0 %

Bank owned life insurance and annuity income

    311       229       35.8 %

Other income

    113       165       -31.5 %

Total noninterest income

    5,265       4,887       7.7 %

Noninterest expense

                       

Salaries and employee benefits

    11,959       10,189       17.4 %

Net occupancy expense

    1,436       1,301       10.4 %

Equipment expense

    2,361       1,851       27.6 %

Professional fees

    400       372       7.5 %

Advertising and public relations

    247       276       -10.5 %

Amortization of intangibles

    998       354       181.9 %

FDIC premiums

    716       292       145.2 %

Bank card expense

    972       726       33.9 %

Foreclosed properties expense, net of (gains)/losses

    10       26       -61.5 %

Acquisition-related expense

  1,110         n/m  

Other expenses

    3,953       3,834       3.1 %

Total noninterest expense

    24,162       19,221       25.7 %

Income before income taxes

    21,126       18,279       15.6 %

Income tax expense

    4,794       3,856       24.3 %

Net income

    16,332       14,423       13.2 %

Preferred stock dividends

  225     225     n/a  
                         

Net income applicable to common shares

  $ 16,107     $ 14,198       13.4 %

 

 

 

SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF)

Quarterly Performance Summary (unaudited) -- Q3 2023 vs Q3 2022

 

   

For the Quarter Ended

   

Percent

 
   

9/30/2023

   

9/30/2022

   

Change

 

Per Share Data

                       

Earnings per common share

                       

Basic

  $ 1.10     $ 1.11       -0.9 %

Diluted

  $ 1.09     $ 1.11       -1.8 %
                         

Cash dividends per common share

  $ 0.22     $ 0.20       10.0 %

Common stock dividend payout ratio

 

19.8

%     17.7 %     11.5 %
                         

Average common shares outstanding

                       

Basic

    14,672,176       12,766,473       14.9 %

Diluted

    14,714,211       12,835,670       14.6 %
                         

Common shares outstanding at period end

    14,674,852       12,774,645       14.9 %
                         

Performance Ratios

                       

Return on average equity

    15.66 %     17.05 %     -8.2 %

Return on average tangible equity (C)(E)

    20.03 %     21.33 %     -6.1 %

Return on average tangible common equity (D)(E)

    20.95 %     22.20 %     -5.6 %

Return on average assets

    1.42 %     1.51 %     -6.0 %

Net interest margin (A)

    3.88 %     3.84 %     1.0 %

Efficiency ratio (B)

    47.15 %     47.95 %     -1.7 %

 

NOTES

 

(A) - Presented on a tax-equivalent basis assuming a federal tax rate of 21%.

 

(B) - Computed on a tax equivalent basis excluding acquisition-related expenses, gains/losses on sales of assets, write-downs of OREO properties to fair value and amortization of intangibles.

 

(C) - Return on average tangible equity = (Net income + Amortization of intangibles [after-tax]) / (Average shareholders' equity - Average intangible assets).

 

(D) - Return on average tangible common equity = (Net income + Amortization of intangibles [after-tax]) / (Average common shareholders' equity - Average intangible assets).

 
(E) - See Non-GAAP Financial Measures for additional information relating to the calculation of this item.

 

 

 

SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF)

Nine Month Performance Summary (unaudited) -- 2023 vs 2022

 

   

For the Nine Months Ended

   

Percent

 

Dollars in thousands

 

9/30/2023

   

9/30/2022

   

Change

 

Statements of Income

                       

Interest income

                       

Loans, including fees

  $ 157,999     $ 101,774       55.2 %

Securities

    17,423       8,871       96.4 %

Other

    610       262       132.8 %

Total interest income

    176,032       110,907       58.7 %

Interest expense

                       

Deposits

    51,775       10,489       393.6 %

Borrowings

    8,481       5,785       46.6 %

Total interest expense

    60,256       16,274       270.3 %
                         

Net interest income

    115,776       94,633       22.3 %

Provision for credit losses

    10,750       5,450       97.2 %

Net interest income after provision for credit losses

    105,026       89,183       17.8 %
                         

Noninterest income

                       

Trust and wealth management fees

    2,484       2,228       11.5 %

Mortgage origination revenue

    513       1,194       -57.0 %

Service charges on deposit accounts

    5,110       4,625       10.5 %

Bank card revenue

    5,462       4,748       15.0 %

Net gains/(losses) on equity investments

  375     (14 )   n/m  

Net realized losses on debt securities, net

    (282 )     (684 )     -58.8 %

Bank owned life insurance and annuity income

    1,078       843       27.9 %

Other income

    334       348       -4.0 %

Total noninterest income

    15,074       13,288       13.4 %

Noninterest expense

                       

Salaries and employee benefits

    34,922       29,920       16.7 %

Net occupancy expense

    4,297       3,801       13.0 %

Equipment expense

    6,752       5,484       23.1 %

Professional fees

    1,246       1,242       0.3 %

Advertising and public relations

    681       613       11.1 %

Amortization of intangibles

    2,340       1,088       115.1 %

FDIC premiums

    1,788       872       105.0 %

Bank card expense

    2,620       2,249       16.5 %

Foreclosed properties expense, net of (gains)/losses

    73       77       -5.2 %

Acquisition-related expense

  5,604     33     n/m  

Other expenses

    10,563       8,651       22.1 %

Total noninterest expense

    70,886       54,030       31.2 %

Income before income taxes

    49,214       48,441       1.6 %

Income tax expense

    10,572       10,311       2.5 %

Net income

    38,642       38,130       1.3 %

Preferred stock dividends

    675       675       0.0 %
                         

Net income applicable to common shares

  $ 37,967     $ 37,455       1.4 %

 

 

 

SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF)

Nine Month Performance Summary (unaudited) -- 2023 vs 2022

 

   

For the Nine Months Ended

   

Percent

 
   

9/30/2023

   

9/30/2022

   

Change

 

Per Share Data

                       

Earnings per common share

                       

Basic

  $ 2.70     $ 2.94       -8.2 %

Diluted

  $ 2.69     $ 2.92       -7.9 %
                         

Cash dividends per common share

  $ 0.62     $ 0.56       10.7 %

Common stock dividend payout ratio

    22.6 %     18.7 %     20.7 %
                         

Average common shares outstanding

                       

Basic

    14,048,567       12,755,576       10.1 %

Diluted

    14,090,796       12,815,365       10.0 %
                         

Common shares outstanding at period end

    14,674,852       12,774,645       14.9 %
                         

Performance Ratios

                       

Return on average equity

    12.97 %     15.26 %     -15.0 %

Return on average tangible equity (C)(E)

    17.60 %     19.23 %     -8.5 %

Return on average tangible common equity (D)(E)

    17.42 %     20.00 %     -12.9 %

Return on average assets

    1.18 %     1.37 %     -13.9 %

Net interest margin (A)

    3.87 %     3.71 %     4.3 %

Efficiency ratio (B)

    47.66 %     48.25 %     -1.2 %

 

NOTES

 

(A) - Presented on a tax-equivalent basis assuming a federal tax rate of 21%.

 

(B) - Computed on a tax equivalent basis excluding acquisition-related expenses, gains/losses on sales of assets, write-downs of OREO properties to fair value and amortization of intangibles.

 

(C) - Return on average tangible equity = (Net income + Amortization of intangibles [after-tax]) / (Average shareholders' equity - Average intangible assets).

 

(D) - Return on average tangible common equity = (Net income + Amortization of intangibles [after-tax]) / (Average common shareholders' equity - Average intangible assets).

 
(E) - See Non-GAAP Financial Measures for additional information relating to the calculation of this item.
 

 

SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF)

Five Quarter Performance Summary (unaudited)

 

   

For the Quarter Ended

 

Dollars in thousands

 

9/30/2023

   

6/30/2023

   

3/31/2023

   

12/31/2022

   

9/30/2022

 

Statements of Income

                                       

Interest income

                                       

Loans, including fees

  $ 58,102     $ 54,413     $ 45,485     $ 43,589     $ 38,784  

Securities

    6,357       6,247       4,819       4,181       3,497  

Other

    235       203       171       70       170  

Total interest income

    64,694       60,863       50,475       47,840       42,451  

Interest expense

                                       

Deposits

    19,924       17,851       14,000       10,194       6,140  

Borrowings

    3,497       2,699       2,286       3,293       2,198  

Total interest expense

    23,421       20,550       16,286       13,487       8,338  
                                         

Net interest income

    41,273       40,313       34,189       34,353       34,113  

Provision for credit losses

    1,250       8,000       1,500       1,500       1,500  

Net interest income after provision for credit losses

    40,023       32,313       32,689       32,853       32,613  
                                         

Noninterest income

                                       

Trust and wealth management fees

    819       854       811       750       725  

Mortgage origination revenue

    172       169       171       286       538  

Service charges on deposit accounts

    1,775       1,943       1,392       1,526       1,550  

Bank card revenue

    1,907       1,987       1,568       1,513       1,639  

Net gains on equity investments

    180       150       45       280       283  

Net realized losses on debt securities

    (12 )     (211 )     (59 )     (24 )     (242 )

Bank owned life insurance and annuity income

    311       431       336       367       229  

Other income

    113       100       122       167       165  

Total noninterest income

    5,265       5,423       4,386       4,865       4,887  

Noninterest expense

                                       

Salaries and employee benefits

    11,959       12,156       10,807       10,532       10,189  

Net occupancy expense

    1,436       1,528       1,333       1,328       1,301  

Equipment expense

    2,361       2,361       2,030       1,769       1,851  

Professional fees

    400       471       376       386       372  

Advertising and public relations

    247       264       170       280       276  

Amortization of intangibles

    998       999       343       351       354  

FDIC premiums

    716       742       330       352       292  

Bank card expense

    972       951       696       679       726  

Foreclosed properties expense, net of (gains)/losses

    10       48       15       159       26  

Acquisition-related expenses

    1,110       4,163       331       81        

Other expenses

    3,953       3,641       2,968       2,932       3,834  

Total noninterest expense

    24,162       27,324       19,399       18,849       19,221  

Income before income taxes

    21,126       10,412       17,676       18,869       18,279  

Income tax expense

    4,794       2,203       3,575       3,783       3,856  

Net income

    16,332       8,209       14,101       15,086       14,423  

Preferred stock dividends

    225       225       225       225       225  
                                         

Net income applicable to common shares

  $ 16,107     $ 7,984     $ 13,876     $ 14,861     $ 14,198  

 

 

 

SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF)

Five Quarter Performance Summary (unaudited)

 

   

For the Quarter Ended

 
   

9/30/2023

   

6/30/2023

   

3/31/2023

   

12/31/2022

   

9/30/2022

 

Per Share Data

                                       

Earnings per common share

                                       

Basic

  $ 1.10     $ 0.54     $ 1.09     $ 1.16     $ 1.11  

Diluted

  $ 1.09     $ 0.54     $ 1.08     $ 1.16     $ 1.11  
                                         

Cash dividends per common share

  $ 0.22     $ 0.20     $ 0.20     $ 0.20     $ 0.20  

Common stock dividend payout ratio

    19.8 %     36.7 %     18.1 %     16.9 %     17.7 %
                                         

Average common shares outstanding

                                       

Basic

    14,672,176       14,668,923       12,783,851       12,775,703       12,766,473  

Diluted

    14,714,211       14,703,636       12,830,102       12,837,637       12,835,670  
                                         

Common shares outstanding at period end

    14,674,852       14,672,147       12,786,404       12,783,646       12,774,645  
                                         

Performance Ratios

                                       

Return on average equity

    15.66 %     7.99 %     15.55 %     17.50 %     17.05 %

Return on average tangible equity (C)(E)

    20.03 %     10.86 %     19.10 %     21.75 %     21.33 %

Return on average tangible common equity (D)(E)

    20.95 %     11.37 %     20.10 %     22.96 %     22.20 %

Return on average assets

    1.42 %     0.73 %     1.43 %     1.54 %     1.51 %

Net interest margin (A)

    3.88 %     3.89 %     3.83 %     3.80 %     3.84 %

Efficiency ratio (B)

    47.15 %     47.90 %     48.00 %     46.40 %     47.95 %

 

NOTES

 

(A) - Presented on a tax-equivalent basis assuming a federal tax rate of 21%.

 

(B) - Computed on a tax equivalent basis excluding acquisition-related expenses, gains/losses on sales of assets, write-downs of OREO properties to fair value and amortization of intangibles.

 

(C) - Return on average tangible equity = (Net income + Amortization of intangibles [after-tax]) / (Average shareholders' equity - Average intangible assets).

 

(D) - Return on average tangible common equity = (Net income + Amortization of intangibles [after-tax]) / (Average common shareholders' equity - Average intangible assets).

 
(E) - See Non-GAAP Financial Measures for additional information relating to the calculation of this item.

 

 

 

SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF)

Selected Balance Sheet Data (unaudited)

 

Dollars in thousands, except per share amounts

 

9/30/2023

   

6/30/2023

   

3/31/2023

   

12/31/2022

   

9/30/2022

 
                                         

Assets

                                       

Cash and due from banks

  $ 23,159     $ 23,341     $ 16,488     $ 16,469     $ 16,141  

Interest bearing deposits other banks

    36,398       39,902       54,328       28,248       29,510  

Debt securities, available for sale

    511,403       512,038       431,933       405,201       383,965  

Debt securities, held to maturity

    94,715       95,200       95,682       96,163       96,640  

Equity investments

    31,241       30,818       29,867       29,494       20,314  

Other investments

    19,579       16,014       12,696       16,029       18,105  

Loans, net

    3,551,686       3,506,880       3,059,099       3,043,919       3,038,377  

Property held for sale

    4,505       4,742       5,128       5,067       5,193  

Premises and equipment, net

    62,721       60,967       54,491       53,981       54,628  

Goodwill and other intangible assets, net

    75,425       76,423       61,807       62,150       62,502  

Cash surrender value of life insurance policies and annuities

    85,076       84,790       72,019       71,640       71,216  

Derivative financial instruments

    44,527       39,951       34,758       40,506       42,179  

Other assets

    63,773       61,204       49,111       47,825       48,529  

Total assets

  $ 4,604,208     $ 4,552,270     $ 3,977,407     $ 3,916,692     $ 3,887,299  
                                         

Liabilities and Shareholders' Equity

                                       

Deposits

  $ 3,754,495     $ 3,735,034     $ 3,299,846     $ 3,169,879     $ 3,108,072  

Short-term borrowings

    258,054       232,150       140,150       225,999       273,148  

Long-term borrowings and subordinated debentures, net

    123,892       123,776       123,660       123,543       123,427  

Other liabilities

    51,315       48,136       44,205       42,741       40,978  

Total liabilities

    4,187,756       4,139,096       3,607,861       3,562,162       3,545,625  

Preferred stock and related surplus

    14,920       14,920       14,920       14,920       14,920  

Common stock and related surplus

    130,508       130,227       90,939       90,696       90,345  

Retained earnings

    289,641       276,762       271,712       260,393       248,084  

Accumulated other comprehensive income (loss)

    (18,617 )     (8,735 )     (8,025 )     (11,479 )     (11,675 )

Total shareholders' equity

    416,452       413,174       369,546       354,530       341,674  

Total liabilities and shareholders' equity

  $ 4,604,208     $ 4,552,270     $ 3,977,407     $ 3,916,692     $ 3,887,299  
                                         

Book value per common share

  $ 27.36     $ 27.14     $ 27.73     $ 26.57     $ 25.58  

Tangible book value per common share (A)(C)

  $ 22.22     $ 21.93     $ 22.90     $ 21.70     $ 20.69  

Tangible common equity to tangible assets (B)(C)

    7.2 %     7.2 %     7.5 %     7.2 %     6.9 %

 

NOTES

 

(A) - Tangible book value per share = (Common stock and related surplus plus Retained earnings plus Accumulated other comprehensive income/loss - Intangible assets) / Common shares outstanding.

(B) - Tangible common equity to tangible assets = (Common stock and related surplus plus Retained earnings plus Accumulated other comprehensive income/loss - Intangible assets) / (Total assets - Intangible assets).

(C) - See Non-GAAP Financial Measures for additional information relating to the calculaton of this item.

 

 

 

SUMMIT FINANCIAL GROUP INC. (NASDAQ: SMMF)

Loan Composition (unaudited)

 

Dollars in thousands

 

9/30/2023

   

6/30/2023

   

3/31/2023

   

12/31/2022

   

9/30/2022

 
                                         

Commercial

  $ 511,951     $ 511,457     $ 498,268     $ 501,844     $ 512,771  

Mortgage warehouse lines

    114,734       118,785       86,240       130,390       194,740  

Commercial real estate

                                       

Owner occupied

    547,886       566,447       469,560       467,050       473,298  

Non-owner occupied

    1,217,029       1,193,927       1,036,358       1,004,368       960,627  

Construction and development

                                       

Land and development

    114,354       117,371       102,351       106,362       104,437  

Construction

    349,049       309,709       290,556       282,935       248,564  

Residential real estate

                                       

Conventional

    497,076       483,998       395,312       386,874       382,203  

Jumbo

    113,837       117,219       111,475       92,103       87,449  

Home equity

    81,967       86,050       70,167       71,986       72,756  

Consumer

    44,288       44,429       36,531       35,372       35,116  

Other

    6,748       3,169       3,117       3,534       3,166  

Total loans, net of unearned fees

    3,598,919       3,552,561       3,099,935       3,082,818       3,075,127  

Less allowance for loan credit losses

    47,233       45,681       40,836       38,899       36,750  

Loans, net

  $ 3,551,686     $ 3,506,880     $ 3,059,099     $ 3,043,919     $ 3,038,377  
                                         

Unfunded loan commitments

  $ 943,508     $ 957,278     $ 907,757     $ 925,657     $ 889,854  

 

 

 

 

SUMMIT FINANCIAL GROUP INC. (NASDAQ: SMMF)

Deposit Composition (unaudited)

 

Dollars in thousands

 

9/30/2023

   

6/30/2023

   

3/31/2023

   

12/31/2022

   

9/30/2022

 

Core deposits

                                       

Non interest bearing checking

  $ 630,055     $ 679,139     $ 552,716     $ 553,616     $ 619,067  

Interest bearing checking

    2,144,737       2,024,341       1,886,011       1,743,299       1,475,643  

Savings

    477,348       512,129       462,631       496,751       582,922  

Time deposits

    469,530       465,026       327,037       343,423       397,662  

Total core deposits

    3,721,670       3,680,635       3,228,395       3,137,089       3,075,294  
                                         

Brokered deposits

    32,825       54,399       71,451       32,790       32,778  

Total deposits

  $ 3,754,495     $ 3,735,034     $ 3,299,846     $ 3,169,879     $ 3,108,072  
                                         

Estimated uninsured deposits (A)

  $ 1,283,610     $ 1,189,908     $ 933,703     $ 946,188     $ 757,038  

 

(A) - Excludes uninsured public funds otherwise secured or collateralized as required by law

 

SUMMIT FINANCIAL GROUP INC. (NASDAQ: SMMF)
Regulatory Capital Ratios (unaudited)

 

   

9/30/2023

   

6/30/2023

   

3/31/2023

   

12/31/2022

   

9/30/2022

 

Summit Financial Group, Inc.

                                       

CET1 Risk-based Capital

    8.9 %     8.7 %     8.9 %     8.6 %     8.2 %

Tier 1 Risk-based Capital

    9.7 %     9.5 %     9.8 %     9.5 %     9.2 %

Total Risk Based Capital

    13.5 %     13.3 %     14.0 %     13.5 %     13.1 %

Tier 1 Leverage

    8.5 %     8.4 %     8.7 %     8.5 %     8.4 %
                                         

Summit Community Bank, Inc.

                                       

CET1 Risk-based Capital

    11.6 %     11.3 %     11.9 %     11.6 %     11.3 %

Tier 1 Risk-based Capital

    11.6 %     11.3 %     11.9 %     11.6 %     11.3 %

Total Risk Based Capital

    12.7 %     12.5 %     13.1 %     12.6 %     12.2 %

Tier 1 Leverage

    10.1 %     9.9 %     10.6 %     10.4 %     10.3 %

 

 

 

SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF)

Asset Quality Information (unaudited)

 

   

For the Quarter Ended

 

Dollars in thousands

 

9/30/2023

   

6/30/2023

   

3/31/2023

   

12/31/2022

   

9/30/2022

 
                                         

Gross loan charge-offs

  $ 226     $ 4,009     $ 164     $ 250     $ 265  

Gross loan recoveries

    (108 )     (118 )     (227 )     (249 )     (257 )

Net loan charge-offs

  $ 118     $ 3,891     $ (63 )   $ 1     $ 8  
                                         

Net loan charge-offs to average loans (annualized)

    0.01 %     0.44 %     -0.01 %     0.00 %     0.00 %
                                         

Allowance for loan credit losses

  $ 47,233     $ 45,681     $ 40,836     $ 38,899     $ 36,750  

Allowance for loan credit losses as a percentage of period end loans

    1.31 %     1.29 %     1.32 %     1.26 %     1.19 %

Allowance for credit losses on unfunded loan commitments ("ULC'")

  $ 6,912     $ 7,332     $ 6,572     $ 6,947     $ 7,597  

Allowance for credit losses on ULC as a percentage of period end ULC

    0.73 %     0.81 %     0.72 %     0.75 %     0.85 %
                                         

Nonperforming assets:

                                       

Nonperforming loans

                                       

Commercial

  $ 783     $ 254     $ 402     $ 93     $ 347  

Commercial real estate

    6,402       5,970       1,700       1,750       1,860  

Residential construction and development

    750       772       813       851       902  

Residential real estate

    4,787       4,298       4,322       5,117       6,083  

Consumer

    124       46       65       12       8  

Total nonperforming loans

    12,846       11,340       7,302       7,823       9,200  

Foreclosed properties

                                       

Commercial real estate

    297       297       297       297       297  

Commercial construction and development

    2,187       2,187       2,187       2,187       2,332  

Residential construction and development

    1,924       2,161       2,293       2,293       2,293  

Residential real estate

    97       97       351       290       271  

Total foreclosed properties

    4,505       4,742       5,128       5,067       5,193  

Total nonperforming assets

  $ 17,351     $ 16,082     $ 12,430     $ 12,890     $ 14,393  
                                         

Nonperforming loans to period end loans

    0.36 %     0.32 %     0.24 %     0.25 %     0.30 %

Nonperforming assets to period end assets

    0.38 %     0.35 %     0.31 %     0.33 %     0.37 %

 

 

SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF)

Loans Past Due 30-89 Days (unaudited)

 

Dollars in thousands

 

9/30/2023

   

6/30/2023

   

3/31/2023

   

12/31/2022

   

9/30/2022

 
                                         

Commercial

  $ 3,300     $ 1,006     $ 463     $ 3,168     $ 1,329  

Commercial real estate

    781       513       1,000       641       1,550  

Construction and development

    793       161       3,459       317       236  

Residential real estate

    4,620       4,933       2,311       6,231       2,824  

Consumer

    440       389       252       253       216  

Other

    37       17       13       22       4  

Total

  $ 9,971     $ 7,019     $ 7,498     $ 10,632     $ 6,159  

 

 

 

SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF)

Average Balance Sheet, Interest Earnings & Expenses and Average Rates

Q3 2023 vs Q2 2023 vs Q3 2022 (unaudited)

 

   

Q3 2023

   

Q2 2023

   

Q3 2022

 
   

Average

   

Earnings/

   

Yield/

   

Average

   

Earnings /

   

Yield /

   

Average

   

Earnings /

   

Yield /

 

Dollars in thousands

 

Balances

   

Expense

   

Rate

   

Balances

   

Expense

   

Rate

   

Balances

   

Expense

   

Rate

 
                                                                         

ASSETS

                                                                       

Interest earning assets

                                                                       

Loans, net of unearned interest (1)

                                                                       

Taxable

  $ 3,591,583     $ 58,040       6.41 %   $ 3,516,306     $ 54,374       6.20 %   $ 3,018,219     $ 38,741       5.09 %

Tax-exempt (2)

    3,911       78       7.91 %     4,144       49       4.74 %     4,834       54       4.43 %

Securities

                                                                       

Taxable

    417,299       4,972       4.73 %     428,039       4,900       4.59 %     283,645       2,273       3.18 %

Tax-exempt (2)

    211,150       1,754       3.30 %     209,931       1,705       3.26 %     203,951       1,549       3.01 %

Interest bearing deposits other banks and Federal funds sold

    39,200       235       2.38 %     35,218       203       2.31 %     49,048       170       1.38 %

Total interest earning assets

    4,263,143       65,079       6.06 %     4,193,638       61,231       5.86 %     3,559,697       42,787       4.77 %
                                                                         

Noninterest earning assets

                                                                       

Cash & due from banks

    24,229                       23,588                       17,455                  

Premises & equipment

    62,085                       60,872                       54,976                  

Intangible assets

    76,037                       80,445                       62,705                  

Other assets

    219,150                       212,104                       171,409                  

Allowance for loan credit losses

    (46,498 )                     (44,312 )                     (35,381 )                

Total assets

  $ 4,598,146                     $ 4,526,335                     $ 3,830,861                  
                                                                         

LIABILITIES AND SHAREHOLDERS' EQUITY

                                         
                                                                         

Liabilities

                                                                       

Interest bearing liabilities

                                                                       

Interest bearing demand deposits

  $ 2,057,035     $ 15,053       2.90 %   $ 1,985,134     $ 13,423       2.71 %   $ 1,454,815     $ 4,276       1.17 %

Savings deposits

    493,565       2,035       1.64 %     528,694       2,000       1.52 %     611,075       1,243       0.81 %

Time deposits

    505,824       2,836       2.22 %     513,236       2,428       1.90 %     461,134       621       0.53 %

Short-term borrowings

    267,935       1,988       2.94 %     207,418       1,212       2.34 %     191,421       850       1.76 %

Long-term borrowings and subordinated debentures

    123,839       1,509       4.83 %     123,843       1,487       4.82 %     123,368       1,348       4.34 %

Total interest bearing liabilities

    3,448,198       23,421       2.69 %     3,358,325       20,550       2.45 %     2,841,813       8,338       1.16 %
                                                                         

Noninterest bearing liabilities

                                                                       

Demand deposits

    681,035                       706,391                       609,424                  

Other liabilities

    51,669                       50,863                       41,339                  

Total liabilities

    4,180,902                       4,115,579                       3,492,576                  
                                                                         

Shareholders' equity - preferred

    14,920                       14,920                       14,920                  

Shareholders' equity - common

    402,324                       395,836                       323,365                  

Total liabilities and shareholders' equity

  $ 4,598,146                     $ 4,526,335                     $ 3,830,861                  
                                                                         

NET INTEREST EARNINGS

          $ 41,658                     $ 40,681                     $ 34,449          
                                                                         

NET INTEREST MARGIN

                    3.88 %                     3.89 %                     3.84 %

(1) For purposes of this table, nonaccrual loans are included in average loan balances.

 

(2) Interest income on tax-exempt securities and loans has been adjusted assuming a Federal tax rate of 21% for all periods presented. The tax equivalent adjustment resulted in an increase in interest income of $385,000, $368,000 and $336,000 for Q3 2023, Q2 2023 and Q3 2022, respectively.

 

 

 

SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF)

Average Balance Sheet, Interest Earnings & Expenses and Average Rates

YTD 2023 vs YTD 2022 (unaudited)

 

   

YTD 2023

   

YTD 2022

 
   

Average

   

Earnings /

   

Yield /

   

Average

   

Earnings /

   

Yield /

 

Dollars in thousands

 

Balances

   

Expense

   

Rate

   

Balances

   

Expense

   

Rate

 
                                                 

ASSETS

                                               

Interest earning assets

                                               

Loans, net of unearned interest (1)

                                               

Taxable

  $ 3,400,167     $ 157,813       6.21 %   $ 2,898,380     $ 101,640       4.69 %

Tax-exempt (2)

    4,706       235       6.68 %     5,108       170       4.45 %

Securities