8-K

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):July 11, 2006

Summit Financial Group, Inc.

(Exact name of registrant as specified in its charter)

West Virginia	0-16587	55-0672148
(State or Other Jurisdiction)	(Commission File Number)	(I.R.S. Employer Identification)

300 North Main Street

Moorefield, WV 26836

(Address of principal executive offices) (Zip Code)

(304) 530-1000

Registrant's telephone number, including area code

Not Applicable

(Former name or former 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))

Section 2 - Financial Information

Item 2.02. Results of Operations and Financial Condition.

On July 11, 2006, Summit Financial Group, Inc. (“Summit”) issued a News Release announcing that it’s mortgage origination unit, Summit Mortgage, experienced a decline in mortgage origination revenue and Summit expects diluted earnings per share to be approximately between $0.36 and $0.37 for the quarter ended June 30, 2006. This News Release is furnished as Exhibit 99 and is incorporated herein by reference.

Section 9 - Financial Statements and Exhibits

Item 9.01 Financial Statements and Exhibits

(c)   Exhibits

99News Release issued on July 11, 2006

SIGNATURE

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: July 12, 2006By: /s/ Julie R. Cook

        Julie R. Cook

        Vice President and

        Chief Accounting Officer

EX-99

                     

Exhibit 99

FOR RELEASE 6:00 AM EDT, TUESDAY, JULY 11, 2006

Contact:	Robert S. Tissue, Sr. Vice President & CFO
Telephone:	(304) 530-0552
Email:	rtissue@SummitFGI.com

SUMMIT FINANCIAL GROUP, INC. REPORTS REDUCTION IN MORTGAGE ORIGINATION REVENUE; EXPECTS Q2 2006 EPS TO RANGE BETWEEN $0.36 AND $0.37

MOOREFIELD, W.Va.--(BUSINESS WIRE)—July 11, 2006—Summit Financial Group, Inc. (NASDAQ: SMMF) today announced that it’s mortgage origination unit, Summit Mortgage, experienced a 16.4% decline in mortgage origination revenue in second quarter 2006 compared to the same period in 2005, as a result of similar reductions in the levels of mortgage originations. Mortgage origination revenue for the quarter ended June 30, 2006 was $5.9 million compared to $7.1 million for the same period in 2005. Summit Mortgage’s loan originations for second quarter 2006 were $67.1 million compared to $83.6 million in second quarter 2005.

Management anticipates Summit’s consolidated second quarter 2006 diluted earnings per share will range approximately between $0.36 and $0.37 per share, compared to the $0.43 per share earned in the prior-year quarter.

ABOUT THE COMPANY

Summit Financial Group, Inc. is a financial holding company with total assets of $1.2 billion. Summit operates fifteen banking locations through its wholly owned subsidiary banks, Summit Community Bank headquartered in Moorefield, West Virginia, and Shenandoah Valley National Bank in Winchester, Virginia. Summit also operates Summit Mortgage, a residential mortgage loan originator located in Virginia and Summit Insurance Services, LLC, 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.