West Virginia | 0-16587 | 55-0672148 | ||
(State or other jurisdiction | (Commission File Number) | (IRS Employer | ||
of incorporation) | Identification No.) |
[ ] | 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)) |
(d) | Exhibits | |||
99 | News Release issued on July 27, 2015 |
SUMMIT FINANCIAL GROUP, INC. | ||||
Date: July 27, 2015 | By: /s/ Robert S. Tissue | |||
Robert S. Tissue | ||||
Senior Vice President & | ||||
Chief Financial Officer |
• | Net interest margin has increased 17 basis points since Q2 2014, although it declined 10 basis points compared to Q1 2015 principally due to a one-time FHLB special dividend paid in first quarter 2015 to its member banks. |
• | Achieved loan growth of $25.2 million during the quarter, or 9.6 percent (on an annualized basis), and $44.7 million, or 8.6 percent (annualized) year-to-date. |
• | Nonperforming assets declined for the fourteenth consecutive quarter. Compared to the linked quarter, nonperforming assets as a percentage of total assets declined from 3.18 percent to 3.05 percent, reaching its lowest level since Q2 2008; foreclosed properties are at the lowest level since Q3 2009. |
• | Core revenues were relatively flat compared to the linked quarter, but have increased 8.3 percent compared to the year ago quarter. |
• | Recorded charges of $160,000 to write-down foreclosed properties compared to $572,000 in Q1 2015 and $962,000 in Q2 2014. |
SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF) | ||||||||||
Quarterly Performance Summary -- Q2 2015 vs Q2 2014 | ||||||||||
For the Quarter Ended | Percent | |||||||||
Dollars in thousands | 6/30/2015 | 6/30/2014 | Change | |||||||
Condensed Statements of Income | ||||||||||
Interest income | ||||||||||
Loans, including fees | $ | 12,972 | $ | 12,515 | 3.7 | % | ||||
Securities | 1,685 | 1,827 | -7.8 | % | ||||||
Other | 1 | 2 | -50.0 | % | ||||||
Total interest income | 14,658 | 14,344 | 2.2 | % | ||||||
Interest expense | ||||||||||
Deposits | 2,074 | 2,335 | -11.2 | % | ||||||
Borrowings | 1,126 | 1,689 | -33.3 | % | ||||||
Total interest expense | 3,200 | 4,024 | -20.5 | % | ||||||
Net interest income | 11,458 | 10,320 | 11.0 | % | ||||||
Provision for loan losses | 500 | 1,000 | -50.0 | % | ||||||
Net interest income after provision for loan losses | 10,958 | 9,320 | 17.6 | % | ||||||
Noninterest income | ||||||||||
Insurance commissions | 1,080 | 1,091 | -1.0 | % | ||||||
Service fees related to deposit accounts | 1,072 | 1,101 | -2.6 | % | ||||||
Realized securities gains (losses) | 170 | (43 | ) | n/m | ||||||
Other-than-temporary impairment of securities | — | (1 | ) | n/m | ||||||
Other income | 538 | 557 | -3.4 | % | ||||||
Total noninterest income | 2,860 | 2,705 | 5.7 | % | ||||||
Noninterest expense | ||||||||||
Salaries and employee benefits | 4,442 | 4,045 | 9.8 | % | ||||||
Net occupancy expense | 489 | 505 | -3.2 | % | ||||||
Equipment expense | 560 | 513 | 9.2 | % | ||||||
Professional fees | 372 | 282 | 31.9 | % | ||||||
FDIC premiums | 320 | 495 | -35.4 | % | ||||||
Foreclosed properties expense | 158 | 229 | -31.0 | % | ||||||
Loss on sales of foreclosed properties | 103 | 54 | 90.7 | % | ||||||
Write-downs of foreclosed properties | 160 | 962 | -83.4 | % | ||||||
Other expenses | 1,457 | 1,445 | 0.8 | % | ||||||
Total noninterest expense | 8,061 | 8,530 | -5.5 | % | ||||||
Income before income taxes | 5,757 | 3,495 | 64.7 | % | ||||||
Income taxes | 1,747 | 1,063 | 64.3 | % | ||||||
Net income | 4,010 | 2,432 | 64.9 | % | ||||||
Preferred stock dividends | — | 193 | n/m | |||||||
Net income applicable to common shares | $ | 4,010 | $ | 2,239 | 79.1 | % |
SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF) | ||||||||||
Quarterly Performance Summary -- Q2 2015 vs Q2 2014 | ||||||||||
For the Quarter Ended | Percent | |||||||||
6/30/2015 | 6/30/2014 | Change | ||||||||
Per Share Data | ||||||||||
Earnings per common share | ||||||||||
Basic | $ | 0.38 | $ | 0.30 | 26.7 | % | ||||
Diluted | $ | 0.38 | $ | 0.25 | 52.0 | % | ||||
Cash dividends | $ | 0.08 | $ | — | n/a | |||||
Average common shares outstanding | ||||||||||
Basic | 10,667,892 | 7,457,222 | 43.1 | % | ||||||
Diluted | 10,676,474 | 9,630,699 | 10.9 | % | ||||||
Common shares outstanding at period end | 10,843,676 | 7,457,222 | 45.4 | % | ||||||
Performance Ratios | ||||||||||
Return on average equity | 11.67 | % | 8.37 | % | 39.4 | % | ||||
Return on average tangible equity | 12.36 | % | 8.98 | % | 37.6 | % | ||||
Return on average assets | 1.09 | % | 0.69 | % | 58.0 | % | ||||
Net interest margin | 3.49 | % | 3.32 | % | 5.1 | % | ||||
Efficiency ratio (A) | 52.05 | % | 52.86 | % | -1.5 | % | ||||
NOTE (A) - Computed on a tax equivalent basis excluding nonrecurring income and expense items and amortization of intangibles. |
SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF) | ||||||||||
Six Month Performance Summary -- 2015 vs 2014 | ||||||||||
For the Six Months Ended | Percent | |||||||||
Dollars in thousands | 6/30/2015 | 6/30/2014 | Change | |||||||
Condensed Statements of Income | ||||||||||
Interest income | ||||||||||
Loans, including fees | $ | 25,821 | $ | 24,731 | 4.4 | % | ||||
Securities | 3,579 | 3,679 | -2.7 | % | ||||||
Other | 2 | 4 | -50.0 | % | ||||||
Total interest income | 29,402 | 28,414 | 3.5 | % | ||||||
Interest expense | ||||||||||
Deposits | 4,145 | 4,576 | -9.4 | % | ||||||
Borrowings | 2,279 | 3,480 | -34.5 | % | ||||||
Total interest expense | 6,424 | 8,056 | -20.3 | % | ||||||
Net interest income | 22,978 | 20,358 | 12.9 | % | ||||||
Provision for loan losses | 750 | 2,000 | -62.5 | % | ||||||
Net interest income after provision for loan losses | 22,228 | 18,358 | 21.1 | % | ||||||
Noninterest income | ||||||||||
Insurance commissions | 2,208 | 2,273 | -2.9 | % | ||||||
Service fees related to deposit accounts | 2,048 | 2,144 | -4.5 | % | ||||||
Realized securities gains (losses) | 650 | (64 | ) | n/m | ||||||
Other-than-temporary impairment of securities | — | (1 | ) | -100.0 | % | |||||
Other income | 1,093 | 1,137 | -3.9 | % | ||||||
Total noninterest income | 5,999 | 5,489 | 9.3 | % | ||||||
Noninterest expense | ||||||||||
Salaries and employee benefits | 8,629 | 8,026 | 7.5 | % | ||||||
Net occupancy expense | 988 | 1,046 | -5.5 | % | ||||||
Equipment expense | 1,095 | 1,079 | 1.5 | % | ||||||
Professional fees | 707 | 598 | 18.2 | % | ||||||
FDIC premiums | 650 | 997 | -34.8 | % | ||||||
Foreclosed properties expense | 366 | 482 | -24.1 | % | ||||||
Loss on sales of foreclosed properties | 253 | 129 | 96.1 | % | ||||||
Write-downs of foreclosed properties | 732 | 1,891 | -61.3 | % | ||||||
Other expenses | 2,846 | 2,780 | 2.4 | % | ||||||
Total noninterest expense | 16,266 | 17,028 | -4.5 | % | ||||||
Income before income taxes | 11,961 | 6,819 | 75.4 | % | ||||||
Income taxes | 3,667 | 1,997 | 83.6 | % | ||||||
Net income | 8,294 | 4,822 | 72.0 | % | ||||||
Preferred stock dividends | — | 387 | n/m | |||||||
Net income applicable to common shares | $ | 8,294 | $ | 4,435 | 87.0 | % |
SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF) | ||||||||||
Six Month Performance Summary -- 2015 vs 2014 | ||||||||||
For the Six Months Ended | Percent | |||||||||
6/30/2015 | 6/30/2014 | Change | ||||||||
Per Share Data | ||||||||||
Earnings per common share | ||||||||||
Basic | $ | 0.85 | $ | 0.59 | 44.1 | % | ||||
Diluted | $ | 0.78 | $ | 0.50 | 56.0 | % | ||||
Cash dividends | $ | 0.16 | $ | — | n/a | |||||
Average common shares outstanding | ||||||||||
Basic | 9,747,042 | 7,455,307 | 30.7 | % | ||||||
Diluted | 10,585,411 | 9,629,830 | 9.9 | % | ||||||
Common shares outstanding at period end | 10,843,676 | 7,457,222 | 45.4 | % | ||||||
Performance Ratios | ||||||||||
Return on average equity | 12.22 | % | 8.42 | % | 45.1 | % | ||||
Return on average tangible equity | 12.95 | % | 9.04 | % | 43.3 | % | ||||
Return on average assets | 1.14 | % | 0.69 | % | 65.2 | % | ||||
Net interest margin | 3.54 | % | 3.32 | % | 6.6 | % | ||||
Efficiency ratio (A) | 50.65 | % | 53.49 | % | -5.3 | % | ||||
NOTE (A) - Computed on a tax equivalent basis excluding nonrecurring income and expense items and amortization of intangibles. |
SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF) | |||||||||||||||||||
Five Quarter Performance Summary | |||||||||||||||||||
For the Quarter Ended | |||||||||||||||||||
Dollars in thousands | 6/30/2015 | 3/31/2015 | 12/31/2014 | 9/30/2014 | 6/30/2014 | ||||||||||||||
Condensed Statements of Income | |||||||||||||||||||
Interest income | |||||||||||||||||||
Loans, including fees | $ | 12,972 | $ | 12,848 | $ | 12,666 | $ | 13,033 | $ | 12,515 | |||||||||
Securities | 1,685 | 1,894 | 1,784 | 1,724 | 1,827 | ||||||||||||||
Other | 1 | 1 | 2 | 3 | 2 | ||||||||||||||
Total interest income | 14,658 | 14,743 | 14,452 | 14,760 | 14,344 | ||||||||||||||
Interest expense | |||||||||||||||||||
Deposits | 2,074 | 2,071 | 2,130 | 2,288 | 2,335 | ||||||||||||||
Borrowings | 1,126 | 1,152 | 1,371 | 1,395 | 1,689 | ||||||||||||||
Total interest expense | 3,200 | 3,223 | 3,501 | 3,683 | 4,024 | ||||||||||||||
Net interest income | 11,458 | 11,520 | 10,951 | 11,077 | 10,320 | ||||||||||||||
Provision for loan losses | 500 | 250 | — | 250 | 1,000 | ||||||||||||||
Net interest income after provision for loan losses | 10,958 | 11,270 | 10,951 | 10,827 | 9,320 | ||||||||||||||
Noninterest income | |||||||||||||||||||
Insurance commissions | 1,080 | 1,128 | 1,023 | 1,105 | 1,091 | ||||||||||||||
Service fees related to deposit accounts | 1,072 | 976 | 1,113 | 1,177 | 1,101 | ||||||||||||||
Realized securities gains (losses) | 170 | 480 | 149 | 128 | (43 | ) | |||||||||||||
Other-than-temporary impairment of securities | — | — | — | — | (1 | ) | |||||||||||||
Other income | 538 | 555 | 537 | 503 | 557 | ||||||||||||||
Total noninterest income | 2,860 | 3,139 | 2,822 | 2,913 | 2,705 | ||||||||||||||
Noninterest expense | |||||||||||||||||||
Salaries and employee benefits | 4,442 | 4,187 | 4,133 | 4,026 | 4,045 | ||||||||||||||
Net occupancy expense | 489 | 498 | 495 | 482 | 505 | ||||||||||||||
Equipment expense | 560 | 535 | 487 | 520 | 513 | ||||||||||||||
Professional fees | 372 | 335 | 452 | 380 | 282 | ||||||||||||||
FDIC premiums | 320 | 330 | 315 | 480 | 495 | ||||||||||||||
Foreclosed properties expense | 158 | 208 | 239 | 298 | 229 | ||||||||||||||
Loss on sale of foreclosed properties | 103 | 150 | 628 | 70 | 54 | ||||||||||||||
Write-downs of foreclosed properties | 160 | 572 | 300 | 1,580 | 962 | ||||||||||||||
Other expenses | 1,457 | 1,389 | 2,061 | 1,350 | 1,445 | ||||||||||||||
Total noninterest expense | 8,061 | 8,204 | 9,110 | 9,186 | 8,530 | ||||||||||||||
Income before income taxes | 5,757 | 6,205 | 4,663 | 4,554 | 3,495 | ||||||||||||||
Income taxes | 1,747 | 1,920 | 1,464 | 1,218 | 1,063 | ||||||||||||||
Net income | 4,010 | 4,285 | 3,199 | 3,336 | 2,432 | ||||||||||||||
Preferred stock dividends | — | — | 191 | 193 | 193 | ||||||||||||||
Net income applicable to common shares | $ | 4,010 | $ | 4,285 | $ | 3,008 | $ | 3,143 | $ | 2,239 |
SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF) | |||||||||||||||||||
Five Quarter Performance Summary | |||||||||||||||||||
For the Quarter Ended | |||||||||||||||||||
6/30/2015 | 3/31/2015 | 12/31/2014 | 9/30/2014 | 6/30/2014 | |||||||||||||||
Per Share Data | |||||||||||||||||||
Earnings per common share | |||||||||||||||||||
Basic | $ | 0.38 | $ | 0.49 | $ | 0.39 | $ | 0.42 | $ | 0.30 | |||||||||
Diluted | $ | 0.38 | $ | 0.41 | $ | 0.32 | $ | 0.35 | $ | 0.25 | |||||||||
Cash dividends | $ | 0.08 | $ | 0.08 | $ | — | $ | — | $ | — | |||||||||
Average common shares outstanding | |||||||||||||||||||
Basic | 10,667,892 | 8,815,961 | 7,796,508 | 7,457,222 | 7,457,222 | ||||||||||||||
Diluted | 10,676,474 | 10,493,323 | 9,963,214 | 9,630,293 | 9,630,699 | ||||||||||||||
Common shares outstanding at period end | 10,843,676 | 10,586,242 | 8,301,746 | 7,457,222 | 7,457,222 | ||||||||||||||
Performance Ratios | |||||||||||||||||||
Return on average equity | 11.67 | % | 12.79 | % | 10.10 | % | 11.13 | % | 8.37 | % | |||||||||
Return on average tangible equity | 12.36 | % | 13.56 | % | 10.76 | % | 11.90 | % | 8.98 | % | |||||||||
Return on average assets | 1.09 | % | 1.18 | % | 0.89 | % | 0.93 | % | 0.69 | % | |||||||||
Net interest margin | 3.49 | % | 3.59 | % | 3.42 | % | 3.47 | % | 3.32 | % | |||||||||
Efficiency ratio - (A) | 52.05 | % | 49.27 | % | 53.07 | % | 51.19 | % | 52.86 | % | |||||||||
NOTE (A) - Computed on a tax equivalent basis excluding nonrecurring income and expense items and amortization of intangibles. |
SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF) | |||||||||||||||||||
Selected Balance Sheet Data | |||||||||||||||||||
For the Quarter Ended | |||||||||||||||||||
Dollars in thousands, except per share amounts | 6/30/2015 | 3/31/2015 | 12/31/2014 | 9/30/2014 | 6/30/2014 | ||||||||||||||
Assets | |||||||||||||||||||
Cash and due from banks | $ | 3,988 | $ | 3,850 | $ | 3,728 | $ | 3,933 | $ | 3,749 | |||||||||
Interest bearing deposits other banks | 9,274 | 8,437 | 8,783 | 9,300 | 9,970 | ||||||||||||||
Securities | 276,661 | 282,135 | 282,834 | 282,401 | 287,883 | ||||||||||||||
Loans, net | 1,064,472 | 1,039,669 | 1,019,842 | 993,347 | 992,816 | ||||||||||||||
Property held for sale | 31,500 | 34,368 | 37,529 | 47,252 | 48,783 | ||||||||||||||
Premises and equipment, net | 20,490 | 20,208 | 20,060 | 20,132 | 20,301 | ||||||||||||||
Intangible assets | 7,598 | 7,648 | 7,698 | 7,748 | 7,798 | ||||||||||||||
Cash surrender value of life insurance policies | 37,222 | 36,961 | 36,700 | 36,417 | 36,151 | ||||||||||||||
Other assets | 28,764 | 27,216 | 26,394 | 28,139 | 28,507 | ||||||||||||||
Total assets | $ | 1,479,969 | $ | 1,460,492 | $ | 1,443,568 | $ | 1,428,669 | $ | 1,435,958 | |||||||||
Liabilities and Shareholders' Equity | |||||||||||||||||||
Deposits | $ | 1,053,310 | $ | 1,058,308 | $ | 1,061,314 | $ | 1,054,454 | $ | 1,057,795 | |||||||||
Short-term borrowings | 174,599 | 148,985 | 123,633 | 127,432 | 91,729 | ||||||||||||||
Long-term borrowings and subordinated debentures | 98,625 | 101,602 | 113,879 | 114,855 | 158,331 | ||||||||||||||
Other liabilities | 13,363 | 15,708 | 13,098 | 10,566 | 10,638 | ||||||||||||||
Shareholders' equity | 140,072 | 135,889 | 131,644 | 121,362 | 117,465 | ||||||||||||||
Total liabilities and shareholders' equity | $ | 1,479,969 | $ | 1,460,492 | $ | 1,443,568 | $ | 1,428,669 | $ | 1,435,958 | |||||||||
Book value per common share (A) | $ | 12.92 | $ | 12.84 | $ | 12.60 | $ | 12.62 | $ | 12.21 | |||||||||
Tangible book value per common share (A) | $ | 12.22 | $ | 12.11 | $ | 11.86 | $ | 11.81 | $ | 11.40 | |||||||||
Tangible equity to tangible assets | 9.0 | % | 8.8 | % | 8.6 | % | 8.0 | % | 7.7 | % | |||||||||
Tangible common equity to tangible assets | 9.0 | % | 8.8 | % | 8.0 | % | 7.3 | % | 7.0 | % | |||||||||
NOTE (A) - Assumes conversion of convertible preferred stock |
SUMMIT FINANCIAL GROUP INC. (NASDAQ: SMMF) | ||||||||||||||
Regulatory Capital Ratios (A) | ||||||||||||||
6/30/2015 | 3/31/2015 | 12/31/2014 | 9/30/2014 | 6/30/2014 | ||||||||||
Summit Financial Group, Inc. | ||||||||||||||
CET1 Risk-based Capital | 11.6 | % | 11.3 | % | n/a | n/a | n/a | |||||||
Tier 1 Risk-based Capital | 13.2 | % | 13.0 | % | 13.3 | % | 12.5 | % | 12.4 | % | ||||
Total Risk Based Capital | 14.2 | % | 14.0 | % | 14.9 | % | 14.3 | % | 14.2 | % | ||||
Tier 1 Leverage Ratio | 10.4 | % | 10.1 | % | 9.9 | % | 9.2 | % | 9.0 | % | ||||
Summit Community Bank, Inc. | ||||||||||||||
CET1 Risk-based Capital | 13.4 | % | 13.5 | % | n/a | n/a | n/a | |||||||
Tier 1 Risk-based Capital | 13.4 | % | 13.5 | % | 14.2 | % | 14.4 | % | 14.5 | % | ||||
Total Risk Based Capital | 14.4 | % | 14.5 | % | 15.3 | % | 15.5 | % | 15.6 | % | ||||
Tier 1 Leverage Ratio | 10.6 | % | 10.5 | % | 10.6 | % | 10.5 | % | 10.6 | % | ||||
NOTE (A) - Computed in accordance with Basel III regulatory capital guidelines beginning January 1, 2015 |
SUMMIT FINANCIAL GROUP INC. (NASDAQ: SMMF) | |||||||||||||||||||
Loan Composition | |||||||||||||||||||
Dollars in thousands | 6/30/2015 | 3/31/2015 | 12/31/2014 | 9/30/2014 | 6/30/2014 | ||||||||||||||
Commercial | $ | 97,284 | $ | 89,928 | $ | 88,590 | $ | 83,762 | $ | 90,096 | |||||||||
Commercial real estate | |||||||||||||||||||
Owner occupied | 191,743 | 180,269 | 157,783 | 156,765 | 154,260 | ||||||||||||||
Non-owner occupied | 331,056 | 325,764 | 317,136 | 314,577 | 314,439 | ||||||||||||||
Construction and development | |||||||||||||||||||
Land and development | 64,435 | 66,558 | 67,881 | 61,088 | 64,246 | ||||||||||||||
Construction | 18,214 | 19,094 | 28,591 | 27,239 | 20,902 | ||||||||||||||
Residential real estate | |||||||||||||||||||
Non-jumbo | 220,199 | 219,938 | 220,071 | 218,125 | 219,569 | ||||||||||||||
Jumbo | 49,203 | 50,492 | 52,879 | 51,917 | 52,487 | ||||||||||||||
Home equity | 72,504 | 68,894 | 67,115 | 64,256 | 61,248 | ||||||||||||||
Consumer | 18,683 | 18,485 | 19,456 | 19,906 | 19,777 | ||||||||||||||
Other | 12,423 | 11,074 | 11,507 | 6,753 | 6,798 | ||||||||||||||
Total loans, net of unearned fees | 1,075,744 | 1,050,496 | 1,031,009 | 1,004,388 | 1,003,822 | ||||||||||||||
Less allowance for loan losses | 11,272 | 10,827 | 11,167 | 11,041 | 11,006 | ||||||||||||||
Loans, net | $ | 1,064,472 | $ | 1,039,669 | $ | 1,019,842 | $ | 993,347 | $ | 992,816 |
SUMMIT FINANCIAL GROUP INC. (NASDAQ: SMMF) | |||||||||||||||||||
Deposit Composition | |||||||||||||||||||
Dollars in thousands | 6/30/2015 | 3/31/2015 | 12/31/2014 | 9/30/2014 | 6/30/2014 | ||||||||||||||
Non interest bearing checking | $ | 113,256 | $ | 117,049 | $ | 115,427 | $ | 104,442 | $ | 106,134 | |||||||||
Interest bearing checking | 202,957 | 196,606 | 204,030 | 195,183 | 187,855 | ||||||||||||||
Savings | 246,949 | 257,687 | 253,578 | 255,880 | 243,323 | ||||||||||||||
Time deposits | 490,148 | 486,966 | 488,279 | 498,949 | 520,483 | ||||||||||||||
Total deposits | $ | 1,053,310 | $ | 1,058,308 | $ | 1,061,314 | $ | 1,054,454 | $ | 1,057,795 |
SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF) | |||||||||||||||||||
Asset Quality Information | |||||||||||||||||||
For the Quarter Ended | |||||||||||||||||||
Dollars in thousands | 6/30/2015 | 3/31/2015 | 12/31/2014 | 9/30/2014 | 6/30/2014 | ||||||||||||||
Gross loan charge-offs | $ | 463 | $ | 782 | $ | 362 | $ | 297 | $ | 1,312 | |||||||||
Gross loan recoveries | (407 | ) | (192 | ) | (488 | ) | (82 | ) | (249 | ) | |||||||||
Net loan charge-offs | $ | 56 | $ | 590 | $ | (126 | ) | $ | 215 | $ | 1,063 | ||||||||
Net loan charge-offs to average loans (annualized) | 0.02 | % | 0.23 | % | -0.05 | % | 0.09 | % | 0.43 | % | |||||||||
Allowance for loan losses | $ | 11,272 | $ | 10,827 | $ | 11,167 | $ | 11,041 | $ | 11,006 | |||||||||
Allowance for loan losses as a percentage of period end loans | 1.05 | % | 1.03 | % | 1.08 | % | 1.10 | % | 1.10 | % | |||||||||
Nonperforming assets: | |||||||||||||||||||
Nonperforming loans | |||||||||||||||||||
Commercial | $ | 1,065 | $ | 788 | $ | 392 | $ | 309 | $ | 415 | |||||||||
Commercial real estate | 2,421 | 1,340 | 1,844 | 936 | 1,537 | ||||||||||||||
Commercial construction and development | — | — | — | — | 3,601 | ||||||||||||||
Residential construction and development | 5,627 | 5,333 | 4,619 | 4,592 | 5,248 | ||||||||||||||
Residential real estate | 4,433 | 4,491 | 5,556 | 5,257 | 3,289 | ||||||||||||||
Consumer | 45 | 65 | 83 | 146 | 129 | ||||||||||||||
Total nonperforming loans | 13,591 | 12,017 | 12,494 | 11,240 | 14,219 | ||||||||||||||
Foreclosed properties | |||||||||||||||||||
Commercial | — | 110 | 110 | 110 | 110 | ||||||||||||||
Commercial real estate | 3,279 | 3,657 | 5,204 | 5,815 | 5,762 | ||||||||||||||
Commercial construction and development | 10,178 | 10,191 | 10,179 | 10,178 | 10,363 | ||||||||||||||
Residential construction and development | 15,839 | 17,590 | 19,267 | 20,431 | 20,557 | ||||||||||||||
Residential real estate | 2,204 | 2,819 | 2,769 | 10,718 | 11,991 | ||||||||||||||
Total foreclosed properties | 31,500 | 34,367 | 37,529 | 47,252 | 48,783 | ||||||||||||||
Other repossessed assets | 55 | 55 | 221 | 34 | — | ||||||||||||||
Total nonperforming assets | $ | 45,146 | $ | 46,439 | $ | 50,244 | $ | 58,526 | $ | 63,002 | |||||||||
Nonperforming loans to period end loans | 1.26 | % | 1.14 | % | 1.21 | % | 1.12 | % | 1.42 | % | |||||||||
Nonperforming assets to period end assets | 3.05 | % | 3.18 | % | 3.48 | % | 4.10 | % | 4.39 | % |
Loans Past Due 30-89 Days | |||||||||||||||||||
For the Quarter Ended | |||||||||||||||||||
In thousands | 6/30/2015 | 3/31/2015 | 12/31/2014 | 9/30/2014 | 6/30/2014 | ||||||||||||||
Commercial | $ | 344 | $ | 387 | $ | 382 | $ | 253 | $ | 376 | |||||||||
Commercial real estate | 4,945 | 783 | 266 | 1,094 | 1,032 | ||||||||||||||
Construction and development | 21 | 2,735 | 2,278 | 324 | 156 | ||||||||||||||
Residential real estate | 3,932 | 3,614 | 7,413 | 5,087 | 5,775 | ||||||||||||||
Consumer | 211 | 148 | 269 | 427 | 585 | ||||||||||||||
Other | 7 | 18 | 14 | 18 | — | ||||||||||||||
Total | $ | 9,460 | $ | 7,685 | $ | 10,622 | $ | 7,203 | $ | 7,924 |
SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF) | |||||||||||||||||||||
Average Balance Sheet, Interest Earnings & Expenses and Average Rates | |||||||||||||||||||||
Q2 2015 vs Q2 2014 | |||||||||||||||||||||
Q2 2015 | Q2 2014 | ||||||||||||||||||||
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 | $ | 1,046,203 | $ | 12,854 | 4.93 | % | $ | 978,842 | $ | 12,428 | 5.09 | % | |||||||||
Tax-exempt | 12,466 | 179 | 5.76 | % | 7,597 | 133 | 7.02 | % | |||||||||||||
Securities | |||||||||||||||||||||
Taxable | 216,063 | 1,093 | 2.03 | % | 213,560 | 1,198 | 2.25 | % | |||||||||||||
Tax-exempt | 74,430 | 898 | 4.84 | % | 82,958 | 952 | 4.60 | % | |||||||||||||
Interest bearing deposits other banks and Federal funds sold | 7,923 | 1 | 0.05 | % | 8,413 | 2 | 0.10 | % | |||||||||||||
Total interest earning assets | 1,357,085 | 15,025 | 4.44 | % | 1,291,370 | 14,713 | 4.57 | % | |||||||||||||
Noninterest earning assets | |||||||||||||||||||||
Cash & due from banks | 3,973 | 3,785 | |||||||||||||||||||
Premises & equipment | 20,409 | 20,433 | |||||||||||||||||||
Other assets | 96,231 | 114,917 | |||||||||||||||||||
Allowance for loan losses | (11,095 | ) | (11,440 | ) | |||||||||||||||||
Total assets | $ | 1,466,603 | $ | 1,419,065 | |||||||||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||||||||||||
Liabilities | |||||||||||||||||||||
Interest bearing liabilities | |||||||||||||||||||||
Interest bearing | |||||||||||||||||||||
demand deposits | $ | 206,597 | $ | 59 | 0.11 | % | $ | 190,146 | $ | 54 | 0.11 | % | |||||||||
Savings deposits | 251,802 | 429 | 0.68 | % | 237,789 | 388 | 0.65 | % | |||||||||||||
Time deposits | 486,396 | 1,586 | 1.31 | % | 524,111 | 1,894 | 1.45 | % | |||||||||||||
Short-term borrowings | 154,704 | 125 | 0.32 | % | 79,687 | 59 | 0.30 | % | |||||||||||||
Long-term borrowings and subordinated debentures | 100,583 | 1,001 | 3.99 | % | 159,550 | 1,629 | 4.10 | % | |||||||||||||
Total interest bearing liabilities | 1,200,082 | 3,200 | 1.07 | % | 1,191,283 | 4,024 | 1.35 | % | |||||||||||||
Noninterest bearing liabilities | |||||||||||||||||||||
Demand deposits | 114,327 | 101,874 | |||||||||||||||||||
Other liabilities | 14,771 | 9,694 | |||||||||||||||||||
Total liabilities | 1,329,180 | 1,302,851 | |||||||||||||||||||
Shareholders' equity - preferred | — | 9,283 | |||||||||||||||||||
Shareholders' equity - common | 137,423 | 106,931 | |||||||||||||||||||
Total liabilities and shareholders' equity | $ | 1,466,603 | $ | 1,419,065 | |||||||||||||||||
NET INTEREST EARNINGS | $ | 11,825 | $ | 10,689 | |||||||||||||||||
NET INTEREST MARGIN | 3.49 | % | 3.32 | % |
SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF) | |||||||||||||||||||||
Average Balance Sheet, Interest Earnings & Expenses and Average Rates | |||||||||||||||||||||
YTD 2015 vs YTD 2014 | |||||||||||||||||||||
YTD 2015 | YTD 2014 | ||||||||||||||||||||
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 | $ | 1,040,935 | $ | 25,588 | 4.96 | % | $ | 968,221 | $ | 24,572 | 5.12 | % | |||||||||
Tax-exempt | 12,516 | 353 | 5.69 | % | 6,719 | 241 | 7.23 | % | |||||||||||||
Securities | |||||||||||||||||||||
Taxable | 213,252 | 2,368 | 2.24 | % | 215,220 | 2,481 | 2.32 | % | |||||||||||||
Tax-exempt | 75,744 | 1,835 | 4.89 | % | 79,218 | 1,815 | 4.62 | % | |||||||||||||
Interest bearing deposits other banks and Federal funds sold | 7,504 | 2 | 0.05 | % | 8,666 | 3 | 0.07 | % | |||||||||||||
Total interest earning assets | 1,349,951 | 30,146 | 4.50 | % | 1,278,044 | 29,112 | 4.59 | % | |||||||||||||
Noninterest earning assets | |||||||||||||||||||||
Cash & due from banks | 3,827 | 3,841 | |||||||||||||||||||
Premises & equipment | 20,307 | 20,506 | |||||||||||||||||||
Other assets | 97,454 | 115,454 | |||||||||||||||||||
Allowance for loan losses | (11,166 | ) | (12,200 | ) | |||||||||||||||||
Total assets | $ | 1,460,373 | $ | 1,405,645 | |||||||||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||||||||||||
Liabilities | |||||||||||||||||||||
Interest bearing liabilities | |||||||||||||||||||||
Interest bearing | |||||||||||||||||||||
demand deposits | $ | 203,237 | $ | 118 | 0.12 | % | $ | 188,573 | $ | 106 | 0.11 | % | |||||||||
Savings deposits | 253,093 | 857 | 0.68 | % | 223,240 | 707 | 0.64 | % | |||||||||||||
Time deposits | 486,187 | 3,169 | 1.31 | % | 527,097 | 3,763 | 1.44 | % | |||||||||||||
Short-term borrowings | 149,769 | 238 | 0.32 | % | 77,444 | 111 | 0.29 | % | |||||||||||||
Long-term borrowings and subordinated debentures | 103,148 | 2,041 | 3.99 | % | 167,013 | 3,368 | 4.07 | % | |||||||||||||
Total interest bearing liabilities | 1,195,434 | 6,423 | 1.08 | % | 1,183,367 | 8,055 | 1.37 | % | |||||||||||||
Noninterest bearing liabilities | |||||||||||||||||||||
Demand deposits | 114,761 | 98,525 | |||||||||||||||||||
Other liabilities | 14,435 | 9,155 | |||||||||||||||||||
Total liabilities | 1,324,630 | 1,291,047 | |||||||||||||||||||
Shareholders' equity - preferred | 3,602 | 9,287 | |||||||||||||||||||
Shareholders' equity - common | 132,141 | 105,311 | |||||||||||||||||||
Total liabilities and shareholders' equity | $ | 1,460,373 | $ | 1,405,645 | |||||||||||||||||
NET INTEREST EARNINGS | $ | 23,723 | $ | 21,057 | |||||||||||||||||
NET INTEREST MARGIN | 3.54 | % | 3.32 | % |
SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF) | |||||||||||||||||||
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures | |||||||||||||||||||
For the Quarter Ended | For the Six Months Ended | ||||||||||||||||||
Dollars in thousands | 6/30/2015 | 3/31/2015 | 6/30/2014 | 6/30/2015 | 6/30/2014 | ||||||||||||||
Core earnings applicable to common shares | $ | 4,069 | $ | 4,326 | $ | 2,907 | $ | 8,394 | $ | 5,748 | |||||||||
FHLB special dividend | — | 176 | — | 176 | — | ||||||||||||||
Applicable income tax effect | — | (65 | ) | — | (65 | ) | — | ||||||||||||
Realized securities gains (losses) | 170 | 480 | (43 | ) | 650 | (64 | ) | ||||||||||||
Applicable income tax effect | (63 | ) | (178 | ) | 16 | (241 | ) | 24 | |||||||||||
Gain (loss) on sale of foreclosed properties | (103 | ) | (150 | ) | (54 | ) | (253 | ) | (129 | ) | |||||||||
Applicable income tax effect | 38 | 56 | 20 | 94 | 48 | ||||||||||||||
Other-than-temporary impairment of securities | — | — | (1 | ) | — | (1 | ) | ||||||||||||
Applicable income tax effect | — | — | — | — | — | ||||||||||||||
Write-downs foreclosed properties | (160 | ) | (572 | ) | (962 | ) | (732 | ) | (1,891 | ) | |||||||||
Applicable income tax effect | 59 | 212 | 356 | 271 | 700 | ||||||||||||||
(59 | ) | (41 | ) | (668 | ) | (100 | ) | (1,313 | ) | ||||||||||
GAAP net income applicable to common shares | $ | 4,010 | $ | 4,285 | $ | 2,239 | $ | 8,294 | $ | 4,435 | |||||||||
Core diluted earnings per common share | $ | 0.39 | $ | 0.41 | $ | 0.32 | $ | 0.78 | $ | 0.65 | |||||||||
FHLB special dividend | — | 0.02 | — | 0.02 | — | ||||||||||||||
Applicable income tax effect | — | (0.01 | ) | — | (0.01 | ) | — | ||||||||||||
Realized securities gains (losses) | 0.02 | 0.05 | — | 0.06 | (0.01 | ) | |||||||||||||
Applicable income tax effect | (0.01 | ) | (0.02 | ) | — | (0.02 | ) | — | |||||||||||
Gain (loss) on sale of foreclosed properties | (0.01 | ) | (0.01 | ) | (0.01 | ) | (0.02 | ) | (0.01 | ) | |||||||||
Applicable income tax effect | — | — | — | 0.01 | — | ||||||||||||||
Other-than-temporary impairment of securities | — | — | — | — | — | ||||||||||||||
Applicable income tax effect | — | — | — | — | — | ||||||||||||||
Write-downs of foreclosed properties | (0.01 | ) | (0.05 | ) | (0.10 | ) | (0.07 | ) | (0.20 | ) | |||||||||
Applicable income tax effect | — | 0.02 | 0.04 | 0.03 | 0.07 | ||||||||||||||
(0.01 | ) | — | (0.07 | ) | — | (0.15 | ) | ||||||||||||
GAAP diluted earnings per common share | $ | 0.38 | $ | 0.41 | $ | 0.25 | $ | 0.78 | $ | 0.50 |
SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF) | |||||||||||||||||||
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures | |||||||||||||||||||
For the Quarter Ended | For the Six Months Ended | ||||||||||||||||||
Dollars in thousands | 6/30/2015 | 3/31/2015 | 6/30/2014 | 6/30/2015 | 6/30/2014 | ||||||||||||||
Total core revenue | $ | 14,148 | $ | 14,003 | $ | 13,069 | $ | 28,151 | $ | 25,911 | |||||||||
FHLB special dividend | — | 176 | — | 176 | — | ||||||||||||||
Realized securities gains/(losses) | 170 | 480 | (43 | ) | 650 | (64 | ) | ||||||||||||
Other-than-temporary impairment of securities | — | — | (1 | ) | — | (1 | ) | ||||||||||||
170 | 656 | (44 | ) | 826 | (65 | ) | |||||||||||||
GAAP total revenue | $ | 14,318 | $ | 14,659 | $ | 13,025 | $ | 28,977 | $ | 25,846 | |||||||||
Total core noninterest income | $ | 2,690 | $ | 2,659 | $ | 2,749 | $ | 5,349 | $ | 5,553 | |||||||||
Realized securities gains/(losses) | 170 | 480 | (43 | ) | 650 | (64 | ) | ||||||||||||
Other-than-temporary impairment of securities | — | — | (1 | ) | — | (1 | ) | ||||||||||||
170 | 480 | (44 | ) | 650 | (65 | ) | |||||||||||||
GAAP total noninterest income | $ | 2,860 | $ | 3,139 | $ | 2,705 | $ | 5,999 | $ | 5,488 | |||||||||
Total core noninterest expense | $ | 7,798 | $ | 7,482 | $ | 7,514 | $ | 15,281 | $ | 15,008 | |||||||||
(Gains)/losses on sales of foreclosed properties | 103 | 150 | 54 | 253 | 129 | ||||||||||||||
Write-downs of foreclosed properties | 160 | 572 | 962 | 732 | 1,891 | ||||||||||||||
263 | 722 | 1,016 | 985 | 2,020 | |||||||||||||||
GAAP total noninterest expense | $ | 8,061 | $ | 8,204 | $ | 8,530 | $ | 16,266 | $ | 17,028 |