Exhibit 99

FOR RELEASE 6:00 AM EST, THURSDAY, JANUARY 29, 2009

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

Telephone:                 (304) 530-0552

Email:                           rtissue@SummitFGI.com

SUMMIT FINANCIAL GROUP REPORTS 2008 FOURTH QUARTER AND FULL-YEAR RESULTS

MOOREFIELD, WV -- January 29, 2009 -- Summit Financial Group, Inc. (“Company” or “Summit”) (NASDAQ: SMMF) today reported fourth quarter 2008 net income of $3.6 million, or $0.48 per diluted share, compared with earnings from continuing operations of $3.9 million, or $0.52 per diluted share, in the prior-year fourth quarter.  For 2008, Summit’s net income was $2.3 million, or $0.31 per diluted share, compared with 2007 earnings from continuing operations of $13.5 million, or $1.85 per diluted share.

Excluding other-than-temporary impairment (“OTTI”) charges primarily relating to investments in Fannie Mae and Freddie Mac preferred stock, aggregating $7.1 million for 2008 ($4.4 million after-tax) and pre-tax gains in the fair value of interest rate swaps of $0.7 million and $1.5 million in 2008 and 2007, respectively, pro forma earnings for the year ended December 31, 2008 were $6.3 million, or $0.85 per diluted share, compared with pro forma net income from continuing operations of $12.6 million, or $1.72 per diluted share for 2007.

Fourth quarter 2008 earnings include an OTTI pre-tax charge of $1.0 million representing a $0.7 million impairment charge on Summit’s investment in Greater Atlantic Financial Corp.’s (“Greater Atlantic”) common stock and $0.3 million in further impairments of its Fannie Mae and Freddie Mac preferred stock.  Fourth quarter 2007 earnings include a gain of $0.8 million from changes in the fair value of interest rate swaps. Excluding these non-recurring or non-cash items, fourth quarter pro forma earnings were $4.2 million, or $0.57 per diluted share, in 2008 and $3.4 million, or $0.45 per diluted share in 2007.

H. Charles Maddy III, president and chief executive officer of Summit, stated, “Our core business remains healthy. We continue to see modest loan demand from existing customers, but we’ve become increasingly selective toward new business. Much of our attention has shifted to the resolution of our problem assets, which appear to be stabilizing after their sharp increase last quarter.

“Our workout team has not wasted time. Of the $23.8 million of construction and development loans we identified and transferred to nonaccrual last quarter, we reduced that amount by nearly forty percent. This includes the transfer of $6.8 million to OREO where we have the opportunity to manage the properties more efficiently. This also includes $4.5 million of charge-offs against the reserves we established for that purpose in the third quarter.

“Excluding one-time OTTI issues, swings from changes in fair value, and costs associated with credit administration, our core banking business has remained stable and well under control. Our revenue has increased gradually in synch with modest growth of noninterest expense. We are disappointed that we were not able to

consummate our merger with Greater Atlantic, but we believe its mutual termination was in the best interest of our shareholders, customers and employees.

Highlights for 2008 include:

·   Strengthening our loan loss reserves to reflect the weaker economy and its current and future impact on asset quality. The $15.5 million loan loss provision recorded this year raised the reserve to 1.40 percent of total loans at year-end, after net loan charge-offs of $7.8 million during the course of the year.

·   The impact of the housing crisis as reflected by the impairment of Summit’s investments in Freddie Mac and Fannie Mae preferred stock resulting in $6.4 million in charges recorded relative to these securities in 2008.

·   Loan growth of $147.9 million, or 13.9 percent year-over-year, derived principally from commercial and commercial real estate loans.

·   Stability of the net interest margin; this continues to be a highlight of Summit’s performance despite the rapid decline of interest rates beginning in third quarter 2007. However, the impact of foregone interest income from nonaccruing loans has negatively impacted the margin in the most recent two quarters.

·   The mutual termination of the Greater Atlantic merger agreement.

Results from Operations

Total revenue, composed of net interest income and noninterest income, was $46.9 million for 2008, up 1.1 percent from prior-year revenue of $46.4 million. Excluding the 2008 impairment charge on securities and the 2008 and 2007 changes in fair value of interest rate swaps, operating revenue for 2008 was $53.3 million, up 18.6 percent from the $44.9 million reported in 2007. Net interest income was $44.1 million, a 12.8 percent increase above the $39.1 million reported for 2007; a 17.0 percent increase in average earning assets over the past twelve months was partially offset by a 13 basis point decline in the net interest margin, which was 3.13 percent for 2008.

Mr. Maddy remarked, "As I have mentioned in the past, our goal has been to maintain a neutral balance sheet and a stable net interest margin, and we have been consistently successful in doing so until the third quarter jump in nonaccruals.  Substantially all of our variable rate loans have interest rate floors and our balance sheet is modestly liability sensitive, so we are quite pleased with the current interest rate environment.”

Noninterest income, reported on a GAAP basis, was $2.9 million for 2008 compared with income of $7.4 million for the prior year. Excluding the 2008 OTTI charge of $7.1 million and the pre-tax changes in the fair value of interest rate swaps of $705,000 and $1,478,000 in 2008 and 2007, respectively, noninterest income from operations totaled $9.2 million for 2008 and $5.9 million for 2007. Insurance commissions increased 78.7 percent to $5.1 million for 2008 compared with $2.9 million for 2007, primarily from the purchase of the Kelly Agencies in third quarter 2007.

The $15.5 million provision for loan losses recorded for 2008 was the primary factor contributing to the decline in operating earnings for the year; the 2008 provision increased by $13.4 million above the $2.1 million recorded for 2007. Of this total, the third quarter provision accounted for the lion’s share: $12.0 million, or 77 percent of the 2008 provision. Having identified and reserved for the loss potential in each of third quarter’s new problem loans, Summit recorded a significantly lower provision of

$750,000 in the 2008 fourth quarter. In addition, two-thirds of 2008’s net charge-offs occurred in the fourth quarter: $5.2 million out of total 2008 net-charge-offs of $7.8 million. The Company ended the year with a loan loss reserve of $16.9 million, or 1.40 percent of total loans, up sharply from the prior year-end level: $9.2 million or 0.86 percent of loans.

Noninterest expense for the 2008 full year was $29.4 million, up $4.3 million, or 17.1 percent, from 2007. Salaries and employee benefits rose $2.1 million or 14.6 percent, above 2007 levels, to $16.7 million. The other expense category accounted for $7.9 million, up 30.5 percent, from $6.0 million in 2007; contributing factors include a $454,000 higher FDIC premium and the write-off of capitalized acquisition costs associated with the terminated Greater Atlantic transaction totaling $514,000. Summit's efficiency ratio, based on continuing operations and excluding one-time nonrecurring items, was 52.01 percent for 2008, a 99 basis point improvement over the 2007 ratio of 53.00 percent, benefitting primarily from a higher level of net interest income.

Balance Sheet and Asset Quality

Assets at December 31, 2008 were $1.6 billion, up $191.5 million, or 13.3 percent since the 2007 year-end. Total loans were $1.2 billion at year-end 2008, up $147.9 million, or 13.9 percent over the past twelve months. Year-over-year loan growth was derived foremost from commercial real estate lending, up $67.8 million, or 17.6 percent, followed by residential real estate, up $53.4 million, and commercial loans, up $37.5 million. Construction and development (C&D) was the only loan category to decline, by $9.8 million, or 4.4 percent, to $215.5 million. Growth was paced throughout the year, with a modest pickup in fourth quarter relative to the third.

Commercial real estate and 1-4 family residential mortgages represent 37.3 percent and 31.0 percent of total loans, respectively, at December 31, 2008. Non real estate-related commercial loans accounted for 10.7 percent of the loan portfolio, while C&D loans represented 17.8 percent of the total, down from 21.2 percent at December 31, 2007.

Nonperforming loans were $48.0 million at year-end 2008, or 3.97 percent of total loans, compared with $59.8 million, or 5.13 percent of loans, for the linked quarter, and $10.3 million, or 0.97 percent, for the year-ago quarter. Nonperforming loans were concentrated in the commercial real estate (CRE) category: $24.3 million, equivalent to 5.4 percent of CRE loans.  While C&D nonperforming loans represented $18.4 million at year end 2008, this loan category has been aggressively managed and reduced by $10.7 million during this past quarter.

At December 31, 2008, foreclosed real estate was $8.1 million compared with $2.3 million for the linked quarter and $2.1 million for the year-ago quarter. Approximately $6.8 million of the $11.9 million decline in nonperforming loans this past quarter represents foreclosures. Summit believes its own workout team is often better equipped to maximize recoveries on real estate projects and shorten the collection period.

Loans in the 30-89 day delinquent category totaled $8.9 million at December 31, 2008, compared with $13.8 million in the preceding quarter and $8.7 million at December 31, 2007. Residential mortgages accounted for $5.0 million of fourth quarter 2008 30-89 day delinquencies.

The combined level of problem assets, including foreclosed properties, nonaccruing loans, and 30-89 day delinquencies, at December 31, 2008 was $64.9 million, or 4.0 percent of assets; this compares with problem assets of $75.9 million for the linked quarter and $21.1 million for the year-ago quarter, equivalent to 4.8 percent of assets and 1.5 percent of assets, respectively.

The Company recorded net charge-offs of $7.8 million, or 0.68 percent of average loans for 2008 compared with net charge-offs of $1.1 million, or 0.11 percent of average loans for 2007. For the fourth quarter, net charge-offs were $5.2 million, or an annualized 1.75 percent of average loans, compared with $917,000, or an annualized 0.32 percent for the linked quarter, and $285,000, or 0.11 percent annualized for the year earlier period. Following the $12.0 million provision for loan losses taken in the third quarter, the allowance for loan losses rose to 1.87 percent; fourth quarter net charge-offs subsequently reduced the allowance to 1.40 percent as of December 31, 2008, which compared favorably to 0.86 percent at December 31, 2007.

Total deposits at December 31, 2008 were $965.9 million compared with $945.2 million at September 30, 2008 and $828.7 million for the year-ago quarter, an increase of $20.6 million, or 2.2 percent, and $137.2, or 16.6 percent, respectively. Core deposits, which include all in-market CDs regardless of size, were $669.3 million at year-end 2008, approximately 69 percent of total deposits in the current quarter compared with 79 percent in the year-ago quarter. Summit’s remaining funding needs are met through the national broker market and the FHLB borrowings, whichever is less expensive.

Shareholders' equity at December 31, 2008 was $87.2 million, a decrease of 2.4 percent over the last twelve months. Capital ratios for Summit and its banking subsidiary, Summit Community Bank, remain in excess of regulatory requirements for "well-capitalized," the highest regulatory capital requirement under Federal regulation. As of fourth quarter-end 2008, common shares outstanding totaled 7,415,310 compared with 7,408,941 for the 2007 fourth quarter.

ABOUT THE COMPANY

Summit Financial Group, Inc., a financial holding company with total assets of $1.6 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 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 several GAAP performance measures to exclude the effects of the non-cash, other-than-temporary impairment charges on securities and to exclude the effects of the non-cash changes in fair value of interest rate swaps included in its Statements of Income.  Management deems these items to be unusual in nature and 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 -- Q4 2008 vs Q4 2007
	For the Quarter Ended						Percent
Dollars in thousands	12/31/2008			12/31/2007			Change
Condensed Statements of Income
Interest income
Loans, including fees	$	19,343		$	20,199			-4.2	%
Securities		4,305			3,590			19.9	%
Other		1			8			-87.5	%
Total interest income		23,649			23,797			-0.6	%
Interest expense
Deposits		7,081			7,759			-8.7	%
Borrowings		5,190			5,697			-8.9	%
Total interest expense		12,271			13,456			-8.8	%
Net interest income		11,378			10,341			10.0	%
Provision for loan losses		750			750			0.0	%
Net interest income after provision
for loan losses		10,628			9,591			10.8	%
Noninterest income
Insurance commissions		1,200			1,157			3.7	%
Service fee income		851			863			-1.4	%
Other-than-temporary impairment of securities		(1,024	)		-			n/m
Net cash settlement on interest rate swaps		-			(183	)		n/m
Change in fair value of interest rate swaps		-			783			n/m
Other income		40			78			-48.7	%
Total noninterest income		1,067			2,698			-60.5	%
Noninterest expense
Salaries and employee benefits		4,047			4,090			-1.1	%
Net occupancy expense		463			466			-0.6	%
Equipment expense		567			568			-0.2	%
Professional fees		250			152			64.5	%
Other expenses		2,534			1,634			55.1	%
Total noninterest expense		7,861			6,910			13.8	%
Income from continuing operations before income taxes		3,834			5,379			-28.7	%
Income taxes		277			1,511			-81.7	%
Income from continuing operations		3,557			3,868			-8.0	%
Discontinued operations
Exit costs and impairment of long-lived assets		-			(435	)		n/m
Operating income (loss)		-			(9,549	)		n/m
Income (loss) from discontinued operations
before income taxes		-			(9,984	)		n/m
Income taxes		-			(3,347	)		n/m
Income (loss) from discontinued operations		-			(6,637	)		n/m
Net Income (loss)	$	3,557		$	(2,769	)		n/m

SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF)
Quarterly Performance Summary -- Q4 2008 vs Q4 2007
	For the Quarter Ended						Percent
	12/31/2008			12/31/2007			Change
Per Share Data
Earnings per share from continuing operations
Basic	$	0.48		$	0.52			-7.7	%
Diluted	$	0.48		$	0.52			-7.7	%
Earnings per share from discontinued operations
Basic	$	-		$	(0.89	)		-100.0	%
Diluted	$	-		$	(0.89	)		-100.0	%
Earnings per share
Basic	$	0.48		$	(0.37	)		-229.7	%
Diluted	$	0.48		$	(0.37	)		-229.7	%
Average shares outstanding
Basic		7,411,577			7,401,684			0.1	%
Diluted		7,434,643			7,450,049			-0.2	%
Performance Ratios
Return on average equity		17.08	%		-11.62	%		-247.0	%
Return on average equity - continuing operations		17.08	%		16.23	%		5.2	%
Return on average assets		0.89	%		-0.81	%		-209.9	%
Return on average assets - continuing operations		0.89	%		1.13	%		-21.2	%
Net interest margin		3.04	%		3.24	%		-6.2	%
Efficiency ratio - continuing operations (A)		51.72	%		53.03	%		-2.5	%

NOTE:  (A) – Computed on a tax equivalent basis excluding nonrecurring income and expense items and amortization of intangibles.

SUMMIT FINANCIAL GROUP, INC. (NASDAQ:  SMMF)
Annual Performance Summary -- 2008 vs 2007
	For the Years Ended						Percent
Dollars in thousands	12/31/2008			12/31/2007			Change
Condensed Statements of Income
Interest income
Loans, including fees	$	77,515		$	77,911			-0.5	%
Securities		15,961			13,422			18.9	%
Other		8			51			-84.3	%
Total interest income		93,484			91,384			2.3	%
Interest expense
Deposits		27,343			34,296			-20.3	%
Borrowings		22,066			18,021			22.4	%
Total interest expense		49,409			52,317			-5.6	%
Net interest income		44,075			39,067			12.8	%
Provision for loan losses		15,500			2,055			654.3	%
Net interest income after provision
for loan losses		28,575			37,012			-22.8	%
Noninterest income
Insurance commissions		5,139			2,876			78.7	%
Service fee income		3,246			3,004			8.1	%
Realized securities gains/(losses)		(6	)		-			-
Other-than-temporary impairment of securities		(7,060	)		-			-
Net cash settlement on interest rate swaps		(170	)		(727	)		-76.6	%
Change in fair value of interest rate swaps		705			1,478			-52.3	%
Other income		1,014			726			39.7	%
Total noninterest income		2,868			7,357			-61.0	%
Noninterest expense
Salaries and employee benefits		16,742			14,608			14.6	%
Net occupancy expense		1,870			1,758			6.4	%
Equipment expense		2,173			2,004			8.4	%
Professional fees		723			695			4.0	%
Other expenses		7,876			6,033			30.5	%
Total noninterest expense		29,384			25,098			17.1	%
Income from continuing operations before income taxes		2,059			19,271			-89.3	%
Income taxes		(241	)		5,734			-104.2	%
Income from continuing operations		2,300			13,537			-83.0	%
Discontinued operations
Exit costs and impairment of long-lived assets		-			(312	)		n/m
Operating income (loss)		-			(10,347	)		n/m
Income (loss) from discontinued operations
before income taxes		-			(10,659	)		n/m
Income taxes		-			(3,578	)		n/m
Income (loss) from discontinued operations		-			(7,081	)		n/m
Net Income	$	2,300		$	6,456			-64.4	%

SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF)
Annual Performance Summary -- 2008 vs 2007
	For the Years Ended						Percent
	12/31/2008			12/31/2007			Change
Per Share Data
Earnings per share from continuing operations
Basic		0.31			1.87			-83.4	%
Diluted		0.31			1.85			-83.2	%
Earnings per share from discontinued operations
Basic		-			(0.98	)		-100.0	%
Diluted		-			(0.97	)		-100.0	%
Earnings per share
Basic	$	0.31		$	0.89			-65.2	%
Diluted	$	0.31		$	0.88			-64.8	%
Average shares outstanding
Basic		7,411,715			7,244,011			2.3	%
Diluted		7,446,991			7,303,391			2.0	%
Performance Ratios
Return on average equity		2.59	%		7.34	%		-64.7	%
Return on average equity - continuing operations		2.59	%		15.39	%		-83.2	%
Return on average assets		0.15	%		0.50	%		-70.0	%
Return on average assets - continuing operations		0.15	%		1.04	%		-85.6	%
Net interest margin		3.13	%		3.26	%		-4.0	%
Efficiency ratio - continuing operations (A)		52.01	%		53.00	%		-1.9	%

NOTE:  (A) – Computed on a tax equivalent basis excluding nonrecurring income and expense items and amortization of intangibles.

SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF)
Five Quarter Performance Summary
	For the Quarter Ended
Dollars in thousands	12/31/2008			9/30/2008			6/30/2008			3/31/2008			12/31/2007
Condensed Statements of Income
Interest income
Loans, including fees	$	19,343		$	18,527		$	19,576		$	20,069		$	20,199
Securities		4,305			4,108			3,761			3,786			3,590
Other		1			2			3			4			8
Total interest income		23,649			22,637			23,340			23,859			23,797
Interest expense
Deposits		7,081			6,704			6,435			7,124			7,759
Borrowings		5,190			5,549			5,530			5,796			5,697
Total interest expense		12,271			12,253			11,965			12,920			13,456
Net interest income		11,378			10,384			11,375			10,939			10,341
Provision for loan losses		750			12,000			1,750			1,000			750
Net interest income after provision
for loan losses		10,628			(1,616	)		9,625			9,939			9,591
Noninterest income
Insurance commissions		1,200			1,337			1,275			1,327			1,157
Service fee income		851			828			824			743			863
Other-than-temporary impairment of securities		(1,024	)		(4,495	)		(1,541	)		-			-
Net cash settlement on interest rate swaps		-			-			-			(170	)		(183	)
Change in fair value of interest rate swaps		-			-			-			705			783
Other income		40			155			570			243			78
Total noninterest income		1,067			(2,175	)		1,128			2,848			2,698
Noninterest expense
Salaries and employee benefits		4,047			4,113			4,187			4,395			4,090
Net occupancy expense		463			489			443			476			466
Equipment expense		567			538			533			534			568
Professional fees		250			173			182			118			152
Other expenses		2,534			1,972			1,804			1,566			1,634
Total noninterest expense		7,861			7,285			7,149			7,089			6,910
Income before income taxes		3,834			(11,076	)		3,604			5,698			5,379
Income taxes		277			(3,402	)		1,010			1,874			1,511
Income (loss) from continuing operations		3,557			(7,674	)		2,594			3,824			3,868
Discontinued operations
Exit costs and impairment of long-lived assets		-			-			-			-			(435	)
Operating income (loss)		-			-			-			-			(9,549	)
Income (loss) from discontinued operations
before income taxes		-			-			-			-			(9,984	)
Income taxes		-			-			-			-			(3,347	)
Income (loss) from discontinued operations		-			-			-			-			(6,637	)
Net Income (loss)	$	3,557		$	(7,674	)	$	2,594		$	3,824		$	(2,769	)

SUMMIT FINANCIAL GROUP, INC. (NASDAQ:  SMMF)
Five Quarter Performance Summary
	For the Quarter Ended
	12/31/2008			9/30/2008			6/30/2008			3/31/2008			12/31/2007
Per Share Data
Earnings per share from continuing operations
Basic	$	0.48		$	(1.04	)	$	0.35		$	0.52		$	0.52
Diluted	$	0.48		$	(1.03	)	$	0.35		$	0.51		$	0.52
Earnings per share from discontinued operations
Basic	$	-		$	-		$	-		$	-		$	(0.89	)
Diluted	$	-		$	-		$	-		$	-		$	(0.89	)
Earnings per share
Basic	$	0.48		$	(1.04	)	$	0.35		$	0.52		$	(0.37	)
Diluted	$	0.48		$	(1.03	)	$	0.35		$	0.51		$	(0.37	)
Average shares outstanding
Basic		7,411,577			7,410,791			7,410,217			7,408,941			7,401,684
Diluted		7,434,643			7,445,242			7,448,170			7,449,105			7,450,049
Performance Ratios
Return on average equity		17.08	%		-34.71	%		11.16	%		16.55	%		-11.62	%
Return on average equity - continuing operations		17.08	%		-34.71	%		11.16	%		16.55	%		16.23	%
Return on average assets		0.89	%		-1.99	%		0.70	%		1.06	%		-0.81	%
Return on average assets - continuing operations		0.89	%		-1.99	%		0.70	%		1.06	%		1.13	%
Net interest margin		3.04	%		2.89	%		3.33	%		3.28	%		3.24	%
Efficiency ratio - continuing operations (A)		51.72	%		54.52	%		49.87	%		52.11	%		53.03	%

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	12/31/2008			9/30/2008			6/30/2008			3/31/2008			12/31/2007
Assets	$	1,627,066		$	1,567,325		$	1,525,978		$	1,465,110		$	1,435,536
Securities		350,622			327,648			307,232			302,029			300,066
Loans, net		1,192,157			1,145,606			1,130,483			1,079,223			1,052,489
Intangible assets		9,704			9,792			9,880			9,968			10,055
Retail deposits		669,261			663,569			634,007			652,148			652,296
Brokered time deposits		296,589			281,655			223,742			184,796			176,391
Short-term borrowings		153,100			98,316			147,900			93,950			172,055
Long-term borrowings and
subordinated debentures		412,337			434,016			419,775			431,918			335,327
Shareholders' equity		87,244			80,510			91,466			91,955			89,420
Book value per share	$	11.77		$	10.86		$	12.34		$	12.41		$	12.06
Tangible book value per share	$	10.46		$	9.54		$	11.01		$	11.07		$	10.70
Tangible equity / Tangible assets		4.8	%		4.5	%		5.4	%		5.6	%		5.6	%
Tier 1 leverage ratio		6.2	%		6.2	%		7.0	%		7.8	%		7.3	%

SUMMIT FINANCIAL GROUP INC. (NASDAQ: SMMF)
Loan Composition
Dollars in thousands	12/31/2008		9/30/2008		6/30/2008		3/31/2008		12/31/2007
Commercial	$	130,106	$	115,106	$	112,793	$	111,442	$	92,599
Commercial real estate		452,264		423,982		415,187		394,619		384,478
Construction and development		215,465		225,582		217,623		211,052		225,270
Residential real estate		376,026		366,989		361,009		336,985		322,640
Consumer		31,519		31,433		30,361		30,206		31,956
Other		6,061		6,240		6,206		6,395		6,641
Total loans		1,211,441		1,169,332		1,143,179		1,090,699		1,063,584
Less unearned fees and interest		2,351		2,293		2,347		1,878		1,903
Total loans net of unearned fees and interest		1,209,090		1,167,039		1,140,832		1,088,821		1,061,681
Less allowance for loan losses		16,933		21,433		10,349		9,598		9,192
Loans, net	$	1,192,157	$	1,145,606	$	1,130,483	$	1,079,223	$	1,052,489

SUMMIT FINANCIAL GROUP INC. (NASDAQ: SMMF)
Retail Deposit Composition
Dollars in thousands	12/31/2008		9/30/2008		6/30/2008		3/31/2008		12/31/2007
Non interest bearing checking	$	69,808	$	70,353	$	68,912	$	64,111	$	65,727
Interest bearing checking		156,990		182,383		194,255		201,820		222,825
Savings		61,688		58,678		60,245		53,427		40,845
Time deposits		380,775		352,155		310,595		332,790		322,899
Total retail deposits	$	669,261	$	663,569	$	634,007	$	652,148	$	652,296

SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF)
Asset Quality Information
	For the Quarter Ended
Dollars in thousands	12/31/2008			9/30/2008			6/30/2008			3/31/2008			12/31/2007
Gross loan charge-offs	$	5,351		$	969		$	1,079		$	646		$	332
Gross loan recoveries		(102	)		(52	)		(80	)		(52	)		(47	)
Net loan charge-offs	$	5,249		$	917		$	999		$	594		$	285
Net loan charge-offs to average loans (annualized)		1.75	%		0.32	%		0.36	%		0.22	%		0.11	%
Allowance for loan losses	$	16,933		$	21,433		$	10,349		$	9,598		$	9,192
Allowance for loan losses as a percentage
of period end loans		1.40	%		1.87	%		0.91	%		0.88	%		0.86	%
Nonperforming assets:
Nonperforming loans	$	47,969		$	59,845		$	15,614		$	13,957		$	10,333
Foreclosed properties and
other repossessed assets		8,113			2,284			2,546			2,205			2,058
Total	$	56,082		$	62,129		$	18,160		$	16,162		$	12,391
Nonperforming loans to period end loans		3.97	%		5.13	%		1.37	%		1.28	%		0.97	%
Nonperforming assets to period end assets		3.45	%		3.96	%		1.19	%		1.11	%		0.86	%

SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF)
Nonperforming Loans
	For the Quarter Ended
Dollars in thousands	12/31/2008		9/30/2008		6/30/2008		3/31/2008		12/31/2007
Commercial	$	199	$	140	$	81	$	695	$	716
Commercial real estate		24,323		27,347		3,184		5,095		4,346
Construction and development		18,382		29,127		6,460		3,694		2,016
Residential real estate		4,986		2,799		5,521		4,247		3,012
Consumer		79		432		368		226		243
Total	$	47,969	$	59,845	$	15,614	$	13,957	$	10,333

SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF)
Loans Past Due 30-89 Days
	For the Quarter Ended
Dollars in thousands	12/31/2008		9/30/2008		6/30/2008		3/31/2008		12/31/2007
Commercial	$	114	$	706	$	1,089	$	321	$	264
Commercial real estate		195		1,407		24,606		1,249		1,604
Construction and development		2,722		1,996		9,919		1,059		997
Residential real estate		5,009		8,537		2,962		3,792		4,485
Consumer		824		1,140		979		946		1,335
Total	$	8,864	$	13,786	$	39,555	$	7,367	$	8,685

SUMMIT FINANCIAL GROUP, INC. (NASDAQ:  SMMF)
Average Balance Sheet, Interest Earnings & Expenses and Average Rates
Q4 2008 vs Q4 2007
	Q4 2008			Q4 2007
	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	$	1,188,368		$	19,232	6.44	%	$	1,015,397		$	20,075	7.84	%
Tax-exempt		8,174			168	8.18	%		9,259			188	8.06	%
Securities
Taxable		287,789			3,786	5.23	%		234,444			3,008	5.09	%
Tax-exempt		47,062			786	6.64	%		49,760			870	6.94	%
Interest bearing deposits other banks
and Federal funds sold		305			1	1.30	%		479			9	7.45	%
Total interest earning assets		1,531,698			23,973	6.23	%		1,309,339			24,150	7.32	%
Noninterest earning assets
Cash & due from banks		20,799							14,391
Premises & equipment		22,441							22,092
Other assets		45,152							35,362
Allowance for loan losses		(21,191	)						(9,033	)
Total assets	$	1,598,899						$	1,372,151
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Interest bearing liabilities
Interest bearing
demand deposits	$	165,705		$	283	0.68	%	$	225,686		$	1,575	2.77	%
Savings deposits		58,444			240	1.63	%		38,706			145	1.49	%
Time deposits		663,789			6,558	3.93	%		487,609			6,039	4.91	%
Short-term borrowings		118,801			231	0.77	%		147,144			1,724	4.65	%
Long-term borrowings and
subordinated debentures		422,996			4,959	4.66	%		299,420			3,973	5.26	%
		1,429,735			12,271	3.41	%		1,198,565			13,456	4.45	%
Noninterest bearing liabilities
Demand deposits		78,180							68,123
Other liabilities		7,675							10,131
Total liabilities		1,515,590							1,276,819
Shareholders' equity		83,309							95,332
Total liabilities and
shareholders' equity	$	1,598,899						$	1,372,151
NET INTEREST EARNINGS				$	11,702						$	10,694
NET INTEREST YIELD ON EARNING ASSETS						3.04	%						3.24	%

SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF)
Average Balance Sheet, Interest Earnings & Expenses and Average Rates
YTD 2008 vs YTD 2007
	For the Years Ended December 31,
	2008								2007
	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	$	1,127,808		$	77,055		6.83	%	$	963,116		$	77,510		8.05	%
Tax-exempt		8,528			697		8.17	%		9,270			738		7.96	%
Securities
Taxable		264,667			13,707		5.18	%		219,605			11,224		5.11	%
Tax-exempt		49,953			3,380		6.77	%		47,645			3,289		6.90	%
Interest bearing deposits other banks
and Federal funds sold		370			8		2.16	%		1,011			51		5.04	%
Total interest earning assets		1,451,326			94,847		6.54	%		1,240,647			92,812		7.48	%
Noninterest earning assets
Cash & due from banks		18,792								14,104
Premises & equipment		22,154								22,179
Other assets		38,760								30,795
Allowance for loan losses		(12,980	)							(8,683	)
Total assets	$	1,518,052							$	1,299,042
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Interest bearing liabilities
Interest bearing
demand deposits	$	190,066		$	2,416		1.27	%	$	227,014		$	7,695		3.39	%
Savings deposits		55,554			908		1.63	%		42,254			706		1.67	%
Time deposits		568,491			24,019		4.23	%		524,389			25,895		4.94	%
Short-term borrowings		112,383			2,392		2.13	%		95,437			4,822		5.05	%
Long-term borrowings and
subordinated debentures		419,454			19,674		4.69	%		245,937			13,199		5.37	%
		1,345,948			49,409		3.67	%		1,135,031			52,317		4.61	%
Noninterest bearing liabilities
Demand deposits		75,165								65,060
Other liabilities		7,976								11,000
Total liabilities		1,429,089								1,211,091
Shareholders' equity		88,963								87,951
Total liabilities and
shareholders' equity	$	1,518,052							$	1,299,042
NET INTEREST EARNINGS				$	45,438							$	40,495
NET INTEREST YIELD ON EARNING ASSETS							3.13	%							3.26	%

SUMMIT FINANCIAL GROUP, INC. (NASDAQ:  SMMF)
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures
	For the Quarter Ended						For the Years Ended
Dollars in thousands (except per share amounts)	12/31/2008			12/31/2007			12/31/2008			12/31/2007
Income from continuing operations - excluding other-
than- temporary charge on securities and change in
fair value of interest rate swaps	$	4,202		$	3,375		$	6,304		$	12,606
Other-than-temporary impairment charge on securities		(1,024	)		-			(7,060	)		-
Applicable income tax effect		379			-			2,612			-
Change in fair value of interest rate swaps		-			783			705			1,478
Applicable income tax effect		-			(290	)		(261	)		(547	)
		(645	)		493			(4,004	)		931
GAAP income from continuing operations	$	3,557		$	3,868		$	2,300		$	13,537
Diluted earnings per share from continuing operations -
excluding other-than-temporary impairment charge
on securities	$	0.57		$	0.45		$	0.85		$	1.72
Other-than-temporary impairment charge on securities		(0.14	)		-			(0.95	)		-
Applicable income tax effect		0.05			-			0.35			-
Change in fair value of interest rate swaps		-			0.11			0.09			0.20
Applicable income tax effect		-			(0.04	)		(0.03	)		(0.07	)
		(0.09	)		0.07			(0.54	)		0.13
GAAP diluted earnings per share	$	0.48		$	0.52		$	0.31		$	1.85
Total revenue - excluding other-than-temporary
impairment charge on securities and change in fair
value of interest rate swaps	$	13,469		$	12,256		$	53,298		$	44,946
Other-than-temporary impairment charge on securities		(1,024	)		-			(7,060	)		-
Change in fair value of interest rate swaps		-			783			705			1,478
		(1,024	)		783			(6,355	)		1,478
GAAP total revenue	$	12,445		$	13,039		$	46,943		$	46,424
Non-interest income - excluding other-than-temporary
impairment charge on securities and change in fair
value of interest rate swaps	$	2,091		$	1,915		$	9,223		$	5,879
Other-than-temporary impairment charge on securities		(1,024	)		-			(7,060	)		-
Change in fair value of interest rate swaps		-			783			705			1,478
		(1,024	)		783			(6,355	)		1,478
GAAP non-interest income	$	1,067		$	2,698		$	2,868		$	7,357