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 January 25, 2016 |
SUMMIT FINANCIAL GROUP, INC. | ||||
Date: January 26, 2016 | By: /s/ Julie R. Markwood | |||
Julie R. Markwood | ||||
Vice President & | ||||
Chief Accounting Officer |
• | 2015 was the most profitable year in Summit’s history, with net income of $16.10 million, or $1.50 per diluted share. |
• | Net interest margin increased 10 basis points compared to the linked quarter, and is 9 basis points higher than Q4 2014. |
• | Core revenues increased $255,000, or 1.8 percent (non-annualized) during Q4 2015, and $3.04 million, or 5.7 percent during 2015. |
• | Loan portfolio grew $17.2 million, or 1.6 percent (non-annualized) during Q4 2015, and $59.8 million, or 5.8 percent during 2015. |
• | Nonperforming assets as a percentage of total assets declined to 2.77 percent compared to 3.07 percent for the linked quarter, and 3.48 percent at year end 2014; foreclosed properties are at the lowest level since Q2 2009. |
• | Recorded charges of $636,000 to write-down foreclosed properties compared to $1.05 million in Q3 2015 and $300,000 in Q4 2014. |
SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF) | ||||||||||
Quarterly Performance Summary -- Q4 2015 vs Q4 2014 | ||||||||||
For the Quarter Ended | Percent | |||||||||
Dollars in thousands | 12/31/2015 | 12/31/2014 | Change | |||||||
Condensed Statements of Income | ||||||||||
Interest income | ||||||||||
Loans, including fees | $ | 13,265 | $ | 12,666 | 4.7 | % | ||||
Securities | 1,685 | 1,784 | -5.5 | % | ||||||
Other | 1 | 2 | -50.0 | % | ||||||
Total interest income | 14,951 | 14,452 | 3.5 | % | ||||||
Interest expense | ||||||||||
Deposits | 2,085 | 2,130 | -2.1 | % | ||||||
Borrowings | 1,133 | 1,371 | -17.4 | % | ||||||
Total interest expense | 3,218 | 3,501 | -8.1 | % | ||||||
Net interest income | 11,733 | 10,951 | 7.1 | % | ||||||
Provision for loan losses | 250 | — | n/a | |||||||
Net interest income after provision for loan losses | 11,483 | 10,951 | 4.9 | % | ||||||
Noninterest income | ||||||||||
Insurance commissions | 851 | 1,023 | -16.8 | % | ||||||
Service fees related to deposit accounts | 1,126 | 1,113 | 1.2 | % | ||||||
Realized securities gains | 421 | 149 | 182.6 | % | ||||||
Other income | 471 | 537 | -12.3 | % | ||||||
Total noninterest income | 2,869 | 2,822 | 1.7 | % | ||||||
Noninterest expense | ||||||||||
Salaries and employee benefits | 4,530 | 4,133 | 9.6 | % | ||||||
Net occupancy expense | 481 | 495 | -2.8 | % | ||||||
Equipment expense | 617 | 487 | 26.7 | % | ||||||
Professional fees | 507 | 452 | 12.2 | % | ||||||
FDIC premiums | 270 | 315 | -14.3 | % | ||||||
Foreclosed properties expense | 150 | 239 | -37.2 | % | ||||||
Loss (gain) on sales of foreclosed properties | (314 | ) | 628 | -150.0 | % | |||||
Write-downs of foreclosed properties | 636 | 300 | 112.0 | % | ||||||
Other expenses | 1,617 | 2,061 | -21.5 | % | ||||||
Total noninterest expense | 8,494 | 9,110 | -6.8 | % | ||||||
Income before income taxes | 5,858 | 4,663 | 25.6 | % | ||||||
Income taxes | 1,712 | 1,464 | 16.9 | % | ||||||
Net income | 4,146 | 3,199 | 29.6 | % | ||||||
Preferred stock dividends | — | 191 | -100.0 | % | ||||||
Net income applicable to common shares | $ | 4,146 | $ | 3,008 | 37.8 | % |
SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF) | ||||||||||
Quarterly Performance Summary -- Q4 2015 vs Q4 2014 | ||||||||||
For the Quarter Ended | Percent | |||||||||
12/31/2015 | 12/31/2014 | Change | ||||||||
Per Share Data | ||||||||||
Earnings per common share | ||||||||||
Basic | $ | 0.39 | $ | 0.39 | — | % | ||||
Diluted | $ | 0.39 | $ | 0.32 | 21.9 | % | ||||
Cash dividends | $ | 0.08 | $ | — | n/a | |||||
Average common shares outstanding | ||||||||||
Basic | 10,661,700 | 7,796,508 | 36.7 | % | ||||||
Diluted | 10,669,192 | 9,963,214 | 7.1 | % | ||||||
Common shares outstanding at period end | 10,671,744 | 8,301,746 | 28.5 | % | ||||||
Performance Ratios | ||||||||||
Return on average equity | 11.66 | % | 10.10 | % | 15.4 | % | ||||
Return on average tangible equity | 12.31 | % | 10.76 | % | 14.4 | % | ||||
Return on average assets | 1.12 | % | 0.89 | % | 25.8 | % | ||||
Net interest margin | 3.51 | % | 3.42 | % | 2.6 | % | ||||
Efficiency ratio (A) | 54.46 | % | 53.07 | % | 2.6 | % | ||||
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 -- 2015 vs 2014 | ||||||||||
For the Years Ended | Percent | |||||||||
Dollars in thousands | 12/31/2015 | 12/31/2014 | Change | |||||||
Condensed Statements of Income | ||||||||||
Interest income | ||||||||||
Loans, including fees | $ | 52,068 | $ | 50,430 | 3.2 | % | ||||
Securities | 6,808 | 7,188 | -5.3 | % | ||||||
Other | 7 | 8 | -12.5 | % | ||||||
Total interest income | 58,883 | 57,626 | 2.2 | % | ||||||
Interest expense | ||||||||||
Deposits | 8,336 | 8,995 | -7.3 | % | ||||||
Borrowings | 4,531 | 6,246 | -27.5 | % | ||||||
Total interest expense | 12,867 | 15,241 | -15.6 | % | ||||||
Net interest income | 46,016 | 42,385 | 8.6 | % | ||||||
Provision for loan losses | 1,250 | 2,250 | -44.4 | % | ||||||
Net interest income after provision for loan losses | 44,766 | 40,135 | 11.5 | % | ||||||
Noninterest income | ||||||||||
Insurance commissions | 4,042 | 4,400 | -8.1 | % | ||||||
Service fees related to deposit accounts | 4,285 | 4,405 | -2.7 | % | ||||||
Realized securities gains | 1,444 | 213 | 577.9 | % | ||||||
Other-than-temporary impairment of securities | — | (1 | ) | -100.0 | % | |||||
Other income | 2,090 | 2,206 | -5.3 | % | ||||||
Total noninterest income | 11,861 | 11,223 | 5.7 | % | ||||||
Noninterest expense | ||||||||||
Salaries and employee benefits | 17,638 | 16,185 | 9.0 | % | ||||||
Net occupancy expense | 1,964 | 2,023 | -2.9 | % | ||||||
Equipment expense | 2,294 | 2,086 | 10.0 | % | ||||||
Professional fees | 1,616 | 1,429 | 13.1 | % | ||||||
FDIC premiums | 1,220 | 1,792 | -31.9 | % | ||||||
Foreclosed properties expense | 684 | 1,020 | -32.9 | % | ||||||
Loss (gain) on sales of foreclosed properties | (26 | ) | 827 | -103.1 | % | |||||
Write-downs of foreclosed properties | 2,415 | 3,771 | -36.0 | % | ||||||
Other expenses | 5,827 | 6,191 | -5.9 | % | ||||||
Total noninterest expense | 33,632 | 35,324 | -4.8 | % | ||||||
Income before income taxes | 22,995 | 16,034 | 43.4 | % | ||||||
Income taxes | 6,893 | 4,678 | 47.3 | % | ||||||
Net income | 16,102 | 11,356 | 41.8 | % | ||||||
Preferred stock dividends | — | 771 | -100.0 | % | ||||||
Net income applicable to common shares | $ | 16,102 | $ | 10,585 | 52.1 | % |
SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF) | ||||||||||
Annual Performance Summary -- 2015 vs 2014 | ||||||||||
For the Years Ended | Percent | |||||||||
12/31/2015 | 12/31/2014 | Change | ||||||||
Per Share Data | ||||||||||
Earnings per common share | ||||||||||
Basic | $ | 1.56 | $ | 1.40 | 11.4 | % | ||||
Diluted | $ | 1.50 | $ | 1.17 | 28.2 | % | ||||
Cash dividends | $ | 0.32 | $ | — | n/a | |||||
Average common shares outstanding | ||||||||||
Basic | 10,295,434 | 7,539,444 | 36.6 | % | ||||||
Diluted | 10,715,275 | 9,711,561 | 10.3 | % | ||||||
Common shares outstanding at period end | 10,671,744 | 8,301,746 | 28.5 | % | ||||||
Performance Ratios | ||||||||||
Return on average equity | 11.62 | % | 9.54 | % | 21.8 | % | ||||
Return on average tangible equity | 12.29 | % | 10.22 | % | 20.3 | % | ||||
Return on average assets | 1.10 | % | 0.80 | % | 37.5 | % | ||||
Net interest margin | 3.50 | % | 3.39 | % | 3.2 | % | ||||
Efficiency ratio (A) | 52.17 | % | 52.78 | % | -1.2 | % | ||||
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 | 12/31/2015 | 9/30/2015 | 6/30/2015 | 3/31/2015 | 12/31/2014 | ||||||||||||||
Condensed Statements of Income | |||||||||||||||||||
Interest income | |||||||||||||||||||
Loans, including fees | $ | 13,265 | $ | 12,983 | $ | 12,972 | $ | 12,848 | $ | 12,666 | |||||||||
Securities | 1,685 | 1,543 | 1,685 | 1,894 | 1,784 | ||||||||||||||
Other | 1 | 5 | 1 | 1 | 2 | ||||||||||||||
Total interest income | 14,951 | 14,531 | 14,658 | 14,743 | 14,452 | ||||||||||||||
Interest expense | |||||||||||||||||||
Deposits | 2,085 | 2,106 | 2,074 | 2,071 | 2,130 | ||||||||||||||
Borrowings | 1,133 | 1,120 | 1,126 | 1,152 | 1,371 | ||||||||||||||
Total interest expense | 3,218 | 3,226 | 3,200 | 3,223 | 3,501 | ||||||||||||||
Net interest income | 11,733 | 11,305 | 11,458 | 11,520 | 10,951 | ||||||||||||||
Provision for loan losses | 250 | 250 | 500 | 250 | — | ||||||||||||||
Net interest income after provision for loan losses | 11,483 | 11,055 | 10,958 | 11,270 | 10,951 | ||||||||||||||
Noninterest income | |||||||||||||||||||
Insurance commissions | 851 | 983 | 1,080 | 1,128 | 1,023 | ||||||||||||||
Service fees related to deposit accounts | 1,126 | 1,111 | 1,072 | 976 | 1,113 | ||||||||||||||
Realized securities gains | 421 | 372 | 170 | 480 | 149 | ||||||||||||||
Other income | 471 | 527 | 538 | 555 | 537 | ||||||||||||||
Total noninterest income | 2,869 | 2,993 | 2,860 | 3,139 | 2,822 | ||||||||||||||
Noninterest expense | |||||||||||||||||||
Salaries and employee benefits | 4,530 | 4,479 | 4,442 | 4,187 | 4,133 | ||||||||||||||
Net occupancy expense | 481 | 496 | 489 | 498 | 495 | ||||||||||||||
Equipment expense | 617 | 582 | 560 | 535 | 487 | ||||||||||||||
Professional fees | 507 | 402 | 372 | 335 | 452 | ||||||||||||||
FDIC premiums | 270 | 300 | 320 | 330 | 315 | ||||||||||||||
Foreclosed properties expense | 150 | 168 | 158 | 208 | 239 | ||||||||||||||
Loss (gain) on sale of foreclosed properties | (314 | ) | 35 | 103 | 150 | 628 | |||||||||||||
Write-downs of foreclosed properties | 636 | 1,046 | 160 | 572 | 300 | ||||||||||||||
Other expenses | 1,617 | 1,364 | 1,457 | 1,389 | 2,061 | ||||||||||||||
Total noninterest expense | 8,494 | 8,872 | 8,061 | 8,204 | 9,110 | ||||||||||||||
Income before income taxes | 5,858 | 5,176 | 5,757 | 6,205 | 4,663 | ||||||||||||||
Income taxes | 1,712 | 1,515 | 1,747 | 1,920 | 1,464 | ||||||||||||||
Net income | 4,146 | 3,661 | 4,010 | 4,285 | 3,199 | ||||||||||||||
Preferred stock dividends | — | — | — | 191 | |||||||||||||||
Net income applicable to common shares | $ | 4,146 | $ | 3,661 | $ | 4,010 | $ | 4,285 | $ | 3,008 |
SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF) | |||||||||||||||||||
Five Quarter Performance Summary | |||||||||||||||||||
For the Quarter Ended | |||||||||||||||||||
12/31/2015 | 9/30/2015 | 6/30/2015 | 3/31/2015 | 12/31/2014 | |||||||||||||||
Per Share Data | |||||||||||||||||||
Earnings per common share | |||||||||||||||||||
Basic | $ | 0.39 | $ | 0.34 | $ | 0.38 | $ | 0.49 | $ | 0.39 | |||||||||
Diluted | $ | 0.39 | $ | 0.34 | $ | 0.38 | $ | 0.41 | $ | 0.32 | |||||||||
Cash dividends | $ | 0.08 | $ | 0.08 | $ | 0.08 | $ | 0.08 | $ | — | |||||||||
Average common shares outstanding | |||||||||||||||||||
Basic | 10,661,700 | 10,703,526 | 10,667,892 | 8,815,961 | 7,796,508 | ||||||||||||||
Diluted | 10,669,192 | 10,712,203 | 10,676,474 | 10,493,323 | 9,963,214 | ||||||||||||||
Common shares outstanding at period end | 10,671,744 | 10,658,199 | 10,843,676 | 10,586,242 | 8,301,746 | ||||||||||||||
Performance Ratios | |||||||||||||||||||
Return on average equity | 11.66 | % | 10.42 | % | 11.67 | % | 12.79 | % | 10.10 | % | |||||||||
Return on average tangible equity | 12.31 | % | 11.01 | % | 12.36 | % | 13.56 | % | 10.76 | % | |||||||||
Return on average assets | 1.12 | % | 1.00 | % | 1.09 | % | 1.18 | % | 0.89 | % | |||||||||
Net interest margin | 3.51 | % | 3.41 | % | 3.49 | % | 3.59 | % | 3.42 | % | |||||||||
Efficiency ratio - (A) | 54.46 | % | 52.93 | % | 52.05 | % | 49.27 | % | 53.07 | % | |||||||||
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 | 12/31/2015 | 9/30/2015 | 6/30/2015 | 3/31/2015 | 12/31/2014 | ||||||||||||||
Assets | |||||||||||||||||||
Cash and due from banks | $ | 3,625 | $ | 4,232 | $ | 3,988 | $ | 3,850 | $ | 3,728 | |||||||||
Interest bearing deposits other banks | 5,862 | 8,057 | 9,274 | 8,437 | 8,783 | ||||||||||||||
Securities | 280,792 | 272,127 | 276,661 | 282,135 | 282,834 | ||||||||||||||
Loans, net | 1,079,331 | 1,062,348 | 1,064,472 | 1,039,669 | 1,019,842 | ||||||||||||||
Property held for sale | 25,567 | 29,713 | 31,500 | 34,368 | 37,529 | ||||||||||||||
Premises and equipment, net | 21,572 | 20,457 | 20,490 | 20,208 | 20,060 | ||||||||||||||
Intangible assets | 7,498 | 7,548 | 7,598 | 7,648 | 7,698 | ||||||||||||||
Cash surrender value of life insurance policies | 37,732 | 37,482 | 37,222 | 36,961 | 36,700 | ||||||||||||||
Other assets | 30,450 | 27,340 | 28,764 | 27,216 | 26,394 | ||||||||||||||
Total assets | $ | 1,492,429 | $ | 1,469,304 | $ | 1,479,969 | $ | 1,460,492 | $ | 1,443,568 | |||||||||
Liabilities and Shareholders' Equity | |||||||||||||||||||
Deposits | $ | 1,066,709 | $ | 1,072,091 | $ | 1,053,310 | $ | 1,058,308 | $ | 1,061,314 | |||||||||
Short-term borrowings | 171,394 | 145,291 | 174,599 | 148,985 | 123,633 | ||||||||||||||
Long-term borrowings and subordinated debentures | 95,170 | 95,648 | 98,625 | 101,602 | 113,879 | ||||||||||||||
Other liabilities | 15,412 | 15,985 | 13,363 | 15,708 | 13,098 | ||||||||||||||
Shareholders' equity | 143,744 | 140,289 | 140,072 | 135,889 | 131,644 | ||||||||||||||
Total liabilities and shareholders' equity | $ | 1,492,429 | $ | 1,469,304 | $ | 1,479,969 | $ | 1,460,492 | $ | 1,443,568 | |||||||||
Book value per common share (A) | $ | 13.48 | $ | 13.16 | $ | 12.92 | $ | 12.84 | $ | 12.60 | |||||||||
Tangible book value per common share (A) | $ | 12.78 | $ | 12.45 | $ | 12.22 | $ | 12.11 | $ | 11.86 | |||||||||
Tangible equity to tangible assets | 9.2 | % | 9.1 | % | 9.0 | % | 8.8 | % | 8.6 | % | |||||||||
Tangible common equity to tangible assets | 9.2 | % | 9.1 | % | 9.0 | % | 8.8 | % | 8.0 | % | |||||||||
NOTE (A) - Assumes conversion of convertible preferred stock |
SUMMIT FINANCIAL GROUP INC. (NASDAQ: SMMF) | ||||||||||||||
Regulatory Capital Ratios (A) | ||||||||||||||
12/31/2015 | 9/30/2015 | 6/30/2015 | 3/31/2015 | 12/31/2014 | ||||||||||
Summit Financial Group, Inc. | ||||||||||||||
CET1 Risk-based Capital | 11.8 | % | 11.7 | % | 11.6 | % | 11.3 | % | n/a | |||||
Tier 1 Risk-based Capital | 13.4 | % | 13.4 | % | 13.2 | % | 13.0 | % | 13.3 | % | ||||
Total Risk Based Capital | 14.4 | % | 14.4 | % | 14.2 | % | 14.0 | % | 14.9 | % | ||||
Tier 1 Leverage Ratio | 10.7 | % | 10.5 | % | 10.4 | % | 10.1 | % | 9.9 | % | ||||
Summit Community Bank, Inc. | ||||||||||||||
CET1 Risk-based Capital | 13.6 | % | 13.6 | % | 13.4 | % | 13.5 | % | n/a | |||||
Tier 1 Risk-based Capital | 13.6 | % | 13.6 | % | 13.4 | % | 13.5 | % | 14.2 | % | ||||
Total Risk Based Capital | 14.5 | % | 14.6 | % | 14.4 | % | 14.5 | % | 15.3 | % | ||||
Tier 1 Leverage Ratio | 10.8 | % | 10.7 | % | 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 | 12/31/2015 | 9/30/2015 | 6/30/2015 | 3/31/2015 | 12/31/2014 | ||||||||||||||
Commercial | $ | 97,201 | $ | 89,250 | $ | 97,284 | $ | 89,928 | $ | 88,590 | |||||||||
Commercial real estate | |||||||||||||||||||
Owner occupied | 203,555 | 199,068 | 191,743 | 180,269 | 157,783 | ||||||||||||||
Non-owner occupied | 337,295 | 336,550 | 331,056 | 325,764 | 317,136 | ||||||||||||||
Construction and development | |||||||||||||||||||
Land and development | 65,500 | 66,164 | 64,435 | 66,558 | 67,881 | ||||||||||||||
Construction | 9,970 | 8,419 | 18,214 | 19,094 | 28,591 | ||||||||||||||
Residential real estate | |||||||||||||||||||
Non-jumbo | 221,749 | 222,739 | 220,199 | 219,938 | 220,071 | ||||||||||||||
Jumbo | 50,313 | 46,092 | 49,203 | 50,492 | 52,879 | ||||||||||||||
Home equity | 74,300 | 73,652 | 72,504 | 68,894 | 67,115 | ||||||||||||||
Consumer | 19,251 | 19,124 | 18,683 | 18,485 | 19,456 | ||||||||||||||
Other | 11,669 | 12,518 | 12,423 | 11,074 | 11,507 | ||||||||||||||
Total loans, net of unearned fees | 1,090,803 | 1,073,576 | 1,075,744 | 1,050,496 | 1,031,009 | ||||||||||||||
Less allowance for loan losses | 11,472 | 11,228 | 11,272 | 10,827 | 11,167 | ||||||||||||||
Loans, net | $ | 1,079,331 | $ | 1,062,348 | $ | 1,064,472 | $ | 1,039,669 | $ | 1,019,842 |
SUMMIT FINANCIAL GROUP INC. (NASDAQ: SMMF) | |||||||||||||||||||
Deposit Composition | |||||||||||||||||||
Dollars in thousands | 12/31/2015 | 9/30/2015 | 6/30/2015 | 3/31/2015 | 12/31/2014 | ||||||||||||||
Non interest bearing checking | $ | 119,010 | $ | 118,887 | $ | 113,256 | $ | 117,049 | $ | 115,427 | |||||||||
Interest bearing checking | 215,721 | 217,242 | 202,957 | 196,606 | 204,030 | ||||||||||||||
Savings | 266,825 | 259,185 | 246,949 | 257,687 | 253,578 | ||||||||||||||
Time deposits | 465,153 | 476,777 | 490,148 | 486,966 | 488,279 | ||||||||||||||
Total deposits | $ | 1,066,709 | $ | 1,072,091 | $ | 1,053,310 | $ | 1,058,308 | $ | 1,061,314 |
SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF) | |||||||||||||||||||
Asset Quality Information | |||||||||||||||||||
For the Quarter Ended | |||||||||||||||||||
Dollars in thousands | 12/31/2015 | 9/30/2015 | 6/30/2015 | 3/31/2015 | 12/31/2014 | ||||||||||||||
Gross loan charge-offs | $ | 132 | $ | 774 | $ | 463 | $ | 782 | $ | 362 | |||||||||
Gross loan recoveries | (126 | ) | (481 | ) | (407 | ) | (192 | ) | (488 | ) | |||||||||
Net loan charge-offs | $ | 6 | $ | 293 | $ | 56 | $ | 590 | $ | (126 | ) | ||||||||
Net loan charge-offs to average loans (annualized) | — | % | 0.11 | % | 0.02 | % | 0.23 | % | -0.05 | % | |||||||||
Allowance for loan losses | $ | 11,472 | $ | 11,228 | $ | 11,272 | $ | 10,827 | $ | 11,167 | |||||||||
Allowance for loan losses as a percentage of period end loans | 1.05 | % | 1.05 | % | 1.05 | % | 1.03 | % | 1.08 | % | |||||||||
Nonperforming assets: | |||||||||||||||||||
Nonperforming loans | |||||||||||||||||||
Commercial | $ | 853 | $ | 884 | $ | 1,065 | $ | 788 | $ | 392 | |||||||||
Commercial real estate | 5,955 | 5,294 | 2,421 | 1,340 | 1,844 | ||||||||||||||
Commercial construction and development | — | — | — | — | — | ||||||||||||||
Residential construction and development | 5,623 | 5,345 | 5,627 | 5,333 | 4,619 | ||||||||||||||
Residential real estate | 3,245 | 3,881 | 4,433 | 4,491 | 5,556 | ||||||||||||||
Consumer | 92 | 53 | 45 | 65 | 83 | ||||||||||||||
Total nonperforming loans | 15,768 | 15,457 | 13,591 | 12,017 | 12,494 | ||||||||||||||
Foreclosed properties | |||||||||||||||||||
Commercial | — | — | — | 110 | 110 | ||||||||||||||
Commercial real estate | 1,300 | 3,209 | 3,279 | 3,657 | 5,204 | ||||||||||||||
Commercial construction and development | 8,717 | 9,328 | 10,178 | 10,191 | 10,179 | ||||||||||||||
Residential construction and development | 14,068 | 14,965 | 15,839 | 17,590 | 19,267 | ||||||||||||||
Residential real estate | 1,482 | 2,211 | 2,204 | 2,819 | 2,769 | ||||||||||||||
Total foreclosed properties | 25,567 | 29,713 | 31,500 | 34,367 | 37,529 | ||||||||||||||
Other repossessed assets | 5 | — | 55 | 55 | 221 | ||||||||||||||
Total nonperforming assets | $ | 41,340 | $ | 45,170 | $ | 45,146 | $ | 46,439 | $ | 50,244 | |||||||||
Nonperforming loans to period end loans | 1.45 | % | 1.44 | % | 1.26 | % | 1.14 | % | 1.21 | % | |||||||||
Nonperforming assets to period end assets | 2.77 | % | 3.07 | % | 3.05 | % | 3.18 | % | 3.48 | % |
Loans Past Due 30-89 Days | |||||||||||||||||||
For the Quarter Ended | |||||||||||||||||||
In thousands | 12/31/2015 | 9/30/2015 | 6/30/2015 | 3/31/2015 | 12/31/2014 | ||||||||||||||
Commercial | $ | 339 | $ | 42 | $ | 344 | $ | 387 | $ | 382 | |||||||||
Commercial real estate | 543 | 1,926 | 4,945 | 783 | 266 | ||||||||||||||
Construction and development | 1,182 | 39 | 21 | 2,735 | 2,278 | ||||||||||||||
Residential real estate | 4,442 | 3,888 | 3,932 | 3,614 | 7,413 | ||||||||||||||
Consumer | 186 | 216 | 211 | 148 | 269 | ||||||||||||||
Other | 9 | 9 | 7 | 18 | 14 | ||||||||||||||
Total | $ | 6,701 | $ | 6,120 | $ | 9,460 | $ | 7,685 | $ | 10,622 |
SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF) | |||||||||||||||||||||
Average Balance Sheet, Interest Earnings & Expenses and Average Rates | |||||||||||||||||||||
Q4 2015 vs Q4 2014 | |||||||||||||||||||||
Q4 2015 | Q4 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 | $ | 1,064,491 | $ | 13,111 | 4.89 | % | $ | 1,006,641 | $ | 12,562 | 4.95 | % | |||||||||
Tax-exempt | 16,393 | 232 | 5.61 | % | 9,488 | 158 | 6.61 | % | |||||||||||||
Securities | |||||||||||||||||||||
Taxable | 202,417 | 1,027 | 2.01 | % | 207,577 | 1,127 | 2.15 | % | |||||||||||||
Tax-exempt | 82,013 | 997 | 4.82 | % | 83,729 | 995 | 4.71 | % | |||||||||||||
Interest bearing deposits other banks and Federal funds sold | 7,345 | 1 | 0.05 | % | 8,102 | 2 | 0.10 | % | |||||||||||||
Total interest earning assets | 1,372,659 | 15,368 | 4.44 | % | 1,315,537 | 14,844 | 4.48 | % | |||||||||||||
Noninterest earning assets | |||||||||||||||||||||
Cash & due from banks | 3,828 | 3,654 | |||||||||||||||||||
Premises & equipment | 21,701 | 20,149 | |||||||||||||||||||
Other assets | 91,596 | 107,467 | |||||||||||||||||||
Allowance for loan losses | (11,370 | ) | (11,239 | ) | |||||||||||||||||
Total assets | $ | 1,478,414 | $ | 1,435,568 | |||||||||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||||||||||||
Liabilities | |||||||||||||||||||||
Interest bearing liabilities | |||||||||||||||||||||
Interest bearing | |||||||||||||||||||||
demand deposits | $ | 215,315 | $ | 72 | 0.13 | % | $ | 199,932 | $ | 60 | 0.12 | % | |||||||||
Savings deposits | 262,557 | 474 | 0.72 | % | 254,986 | 443 | 0.69 | % | |||||||||||||
Time deposits | 469,249 | 1,539 | 1.30 | % | 489,884 | 1,627 | 1.32 | % | |||||||||||||
Short-term borrowings | 156,812 | 156 | 0.39 | % | 124,001 | 97 | 0.31 | % | |||||||||||||
Long-term borrowings and subordinated debentures | 95,531 | 977 | 4.06 | % | 114,533 | 1,274 | 4.41 | % | |||||||||||||
Total interest bearing liabilities | 1,199,464 | 3,218 | 1.06 | % | 1,183,336 | 3,501 | 1.17 | % | |||||||||||||
Noninterest bearing liabilities | |||||||||||||||||||||
Demand deposits | 119,785 | 113,926 | |||||||||||||||||||
Other liabilities | 16,970 | 11,633 | |||||||||||||||||||
Total liabilities | 1,336,219 | 1,308,895 | |||||||||||||||||||
Shareholders' equity - preferred | — | 9,249 | |||||||||||||||||||
Shareholders' equity - common | 142,195 | 117,424 | |||||||||||||||||||
Total liabilities and shareholders' equity | $ | 1,478,414 | $ | 1,435,568 | |||||||||||||||||
NET INTEREST EARNINGS | $ | 12,150 | $ | 11,343 | |||||||||||||||||
NET INTEREST MARGIN | 3.51 | % | 3.42 | % |
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 | $ | 1,049,172 | $ | 51,554 | 4.91 | % | $ | 984,723 | $ | 50,078 | 5.09 | % | |||||||||
Tax-exempt | 13,706 | 779 | 5.68 | % | 7,823 | 533 | 6.81 | % | |||||||||||||
Securities | |||||||||||||||||||||
Taxable | 209,316 | 4,328 | 2.07 | % | 211,700 | 4,692 | 2.22 | % | |||||||||||||
Tax-exempt | 77,280 | 3,756 | 4.86 | % | 81,549 | 3,780 | 4.64 | % | |||||||||||||
Interest bearing deposits other banks and Federal funds sold | 8,878 | 8 | 0.09 | % | 9,325 | 8 | 0.09 | % | |||||||||||||
Total interest earning assets | 1,358,352 | 60,425 | 4.45 | % | 1,295,120 | 59,091 | 4.56 | % | |||||||||||||
Noninterest earning assets | |||||||||||||||||||||
Cash & due from banks | 3,839 | 3,756 | |||||||||||||||||||
Premises & equipment | 20,707 | 20,346 | |||||||||||||||||||
Other assets | 94,996 | 112,504 | |||||||||||||||||||
Allowance for loan losses | (11,307 | ) | (11,724 | ) | |||||||||||||||||
Total assets | $ | 1,466,587 | $ | 1,420,002 | |||||||||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||||||||||||
Liabilities | |||||||||||||||||||||
Interest bearing liabilities | |||||||||||||||||||||
Interest bearing | |||||||||||||||||||||
demand deposits | $ | 208,160 | $ | 251 | 0.12 | % | $ | 192,190 | $ | 222 | 0.12 | % | |||||||||
Savings deposits | 255,186 | 1,781 | 0.70 | % | 238,340 | 1,580 | 0.66 | % | |||||||||||||
Time deposits | 481,732 | 6,304 | 1.31 | % | 513,110 | 7,193 | 1.40 | % | |||||||||||||
Short-term borrowings | 151,102 | 525 | 0.35 | % | 100,786 | 306 | 0.30 | % | |||||||||||||
Long-term borrowings and subordinated debentures | 99,805 | 4,007 | 4.01 | % | 142,213 | 5,939 | 4.18 | % | |||||||||||||
Total interest bearing liabilities | 1,195,985 | 12,868 | 1.08 | % | 1,186,639 | 15,240 | 1.28 | % | |||||||||||||
Noninterest bearing liabilities | |||||||||||||||||||||
Demand deposits | 116,995 | 104,262 | |||||||||||||||||||
Other liabilities | 15,024 | 10,119 | |||||||||||||||||||
Total liabilities | 1,328,004 | 1,301,020 | |||||||||||||||||||
Shareholders' equity - preferred | 1,786 | 9,276 | |||||||||||||||||||
Shareholders' equity - common | 136,797 | 109,706 | |||||||||||||||||||
Total liabilities and shareholders' equity | $ | 1,466,587 | $ | 1,420,002 | |||||||||||||||||
NET INTEREST EARNINGS | $ | 47,557 | $ | 43,851 | |||||||||||||||||
NET INTEREST MARGIN | 3.50 | % | 3.39 | % |
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 | 12/31/2015 | 9/30/2015 | 12/31/2014 | 12/31/2015 | 12/31/2014 | ||||||||||||||
Core earnings applicable to common shares | $ | 4,084 | $ | 4,108 | $ | 3,789 | $ | 16,697 | $ | 13,638 | |||||||||
Realized securities gains | 421 | 372 | 149 | 1,444 | 213 | ||||||||||||||
Applicable income tax effect | (156 | ) | (138 | ) | (55 | ) | (534 | ) | (79 | ) | |||||||||
Gain (loss) on sale of foreclosed properties | 314 | (35 | ) | (628 | ) | 26 | (827 | ) | |||||||||||
Applicable income tax effect | (116 | ) | 13 | 232 | (10 | ) | 306 | ||||||||||||
Fraud loss | — | — | (461 | ) | — | (461 | ) | ||||||||||||
Applicable income tax effect | — | — | 171 | — | 171 | ||||||||||||||
Write-downs foreclosed properties | (636 | ) | (1,046 | ) | (300 | ) | (2,415 | ) | (3,771 | ) | |||||||||
Applicable income tax effect | 235 | 387 | 111 | 894 | 1,395 | ||||||||||||||
62 | (447 | ) | (781 | ) | (595 | ) | (3,053 | ) | |||||||||||
GAAP net income applicable to common shares | $ | 4,146 | $ | 3,661 | $ | 3,008 | $ | 16,102 | $ | 10,585 | |||||||||
Core diluted earnings per common share | $ | 0.38 | $ | 0.38 | $ | 0.40 | $ | 1.56 | $ | 1.50 | |||||||||
Realized securities gains | 0.04 | — | 0.01 | 0.13 | 0.02 | ||||||||||||||
Applicable income tax effect | (0.01 | ) | — | — | (0.05 | ) | (0.01 | ) | |||||||||||
Gain (loss) on sale of foreclosed properties | 0.03 | 0.03 | (0.06 | ) | — | (0.09 | ) | ||||||||||||
Applicable income tax effect | (0.01 | ) | (0.01 | ) | 0.02 | — | 0.03 | ||||||||||||
Fraud loss | — | — | (0.05 | ) | — | (0.05 | ) | ||||||||||||
Applicable income tax effect | — | — | 0.02 | — | 0.02 | ||||||||||||||
Write-downs of foreclosed properties | (0.06 | ) | (0.10 | ) | (0.03 | ) | (0.23 | ) | (0.39 | ) | |||||||||
Applicable income tax effect | 0.02 | 0.04 | 0.01 | 0.09 | 0.14 | ||||||||||||||
0.01 | (0.04 | ) | (0.08 | ) | (0.06 | ) | (0.33 | ) | |||||||||||
GAAP diluted earnings per common share | $ | 0.39 | $ | 0.34 | $ | 0.32 | $ | 1.50 | $ | 1.17 |
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 | 12/31/2015 | 9/30/2015 | 12/31/2014 | 12/31/2015 | 12/31/2014 | ||||||||||||||
Total core revenue | $ | 14,181 | $ | 13,926 | $ | 13,624 | $ | 56,433 | $ | 53,395 | |||||||||
FHLB special dividend | — | — | — | 176 | — | ||||||||||||||
Realized securities gains | 421 | 372 | 149 | 1,444 | 213 | ||||||||||||||
421 | 372 | 149 | 1,444 | 213 | |||||||||||||||
GAAP total revenue | $ | 14,602 | $ | 14,298 | $ | 13,773 | $ | 57,877 | $ | 53,608 | |||||||||
Total core noninterest income | $ | 2,448 | $ | 2,621 | $ | 2,673 | $ | 10,417 | $ | 11,010 | |||||||||
Realized securities gains | 421 | 372 | 149 | 1,444 | 213 | ||||||||||||||
421 | 372 | 149 | 1,444 | 213 | |||||||||||||||
GAAP total noninterest income | $ | 2,869 | $ | 2,993 | $ | 2,822 | $ | 11,861 | $ | 11,223 | |||||||||
Total core noninterest expense | $ | 8,172 | $ | 7,791 | $ | 7,721 | $ | 31,243 | $ | 30,265 | |||||||||
Fraud loss | — | — | 461 | — | 461 | ||||||||||||||
(Gains)/losses on sales of foreclosed properties | (314 | ) | 35 | 628 | (26 | ) | 827 | ||||||||||||
Write-downs of foreclosed properties | 636 | 1,046 | 300 | 2,415 | 3,771 | ||||||||||||||
322 | 1,081 | 1,389 | 2,389 | 5,059 | |||||||||||||||
GAAP total noninterest expense | $ | 8,494 | $ | 8,872 | $ | 9,110 | $ | 33,632 | $ | 35,324 |