Exhibit

EXHIBIT 99

FOR RELEASE 6:00 AM ET, January 24, 2020

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

Telephone: (304) 530-0552

Email: rtissue@summitfgi.com

SUMMIT FINANCIAL GROUP REPORTS FOURTH QUARTER AND FULL YEAR 2019 RESULTS

Q4 2019 Diluted EPS $0.65 compared to $0.65 for Q3 2019 and $0.60 for Q4 2018

MOOREFIELD, WV - January 24, 2020 (GLOBE NEWSWIRE) - Summit Financial Group, Inc. (“Company” or “Summit”) (NASDAQ: SMMF) today reported fourth quarter 2019 net income of $8.15 million, or $0.65 per diluted share. In comparison, earnings for third quarter 2019 were $8.06 million, or $0.65 per diluted share, and for fourth quarter 2018 were $7.45 million, or $0.60 per diluted share. Summit achieved returns on average assets and average tangible equity in fourth quarter 2019 of 1.39 percent and 15.25 percent, respectively, compared to 1.38 percent and 16.41 percent, respectively, in the same period of 2018.

Fourth quarter 2019 earnings compared to the linked quarter were positively impacted by increased net interest income resulting primarily from lower funding costs. Also positively impacting fourth quarter 2019 results compared to third quarter 2019 were $312,000 in gains on sales of foreclosed properties compared to $66,000 losses in the linked quarter.

For the full year 2019, Summit achieved record net income of $31.9 million, or $2.53 per diluted share, compared with $28.1 million, or $2.26 per diluted share, for 2018. Our returns on average assets and average tangible equity for 2019 were 1.40 percent and 15.65 percent, respectively, compared to 1.32 percent and 16.09 percent, respectively, for 2018.

Earnings for 2019 were positively impacted by increased net interest income resulting primarily from loan growth as well as lower funding costs, increased realized securities gains and the gain on the sale of our former insurance agency, Summit Insurance Services, LLC (“SIS”). These results were partially offset by larger write-downs on foreclosed properties in Q2 2019 with the goal of selling such properties more rapidly, lower insurance commission revenue during 2019 and increased merger-related expenses.

H. Charles Maddy, III, President and Chief Executive Officer of Summit, commented, “I am very gratified Summit achieved a new annual earnings record both in net income and on a per share basis in 2019. In addition, I am particularly pleased by our continued strong core operating performance in this past quarter, highlighted by our exceptional growth in both our core loans and deposits, while at the same time maintaining a stable net interest margin. Our acquisition of Cornerstone Financial Services, Inc. closed at the beginning of 2020, and it serves to combine Summit with a financially strong bank that shares the same commitment to build long-term client relationships by providing ‘Service Beyond Expectations’. The financial synergies relative to this transaction are already evident. Looking forward to 2020 and beyond, I am optimistic as we gain

momentum towards our goal to be a consistent growing, high-performing community banking institution.

Summit completed its acquisition of Peoples Bankshares, Inc. (“PBI”) and its subsidiary, First Peoples Bank, headquartered in Mullens, West Virginia on January 1, 2019 and converted its business processes and accounts to that of Summit’s during Q2 2019; accordingly, PBI’s results of operations are included in Summit’s consolidated results of operations from the date of acquisition. Therefore, Summit’s fourth quarter and annual 2019 period results reflect increased levels of average balances, income and expenses compared to the same periods of 2018. At consummation, PBI had total assets of $133.1 million, loans of $42.4 million, and deposits of $112.9 million.

Highlights for Q4 2019


•	Net interest income increased 8.40 percent (annualized) compared to Q3 2019 and increased 10.4 percent year-to-date 2019 versus the same period in 2018, primarily due to our loan growth;


•	Net interest margin in Q4 2019 remained unchanged at 3.63 percent as compared to Q3 2019 while yields on loans declined 13 basis points and deposit and other funding costs declined 15 basis points;


•	Loan balances, excluding mortgage warehouse lines of credit, increased $80.5 million during the quarter, and grew $131.4 million in 2019, principally in the commercial real estate and construction and development portfolios;


•	Mortgage warehouse lines of credit decreased $18.8 million during the quarter, but grew $87.1 million during 2019;


•	Efficiency ratio was 52.25 percent compared to 52.91 percent in the linked quarter and 51.02 percent for Q4 2018;


•	Write-downs of foreclosed properties were $497,000 in Q4 2019 compared to $133,000 in Q3 2019, while the realized gains/losses on sales of foreclosed properties increased from a net loss of $66,000 in Q3 2019 to $312,000 net gains in Q4 2019; and


•	Nonperforming assets as a percentage of total assets improved to 1.28 percent from 1.45 percent for the linked quarter and 1.66 percent at year end 2018.


•	Announced our entering into a definitive agreement to acquire four MVB Bank branches in Berkeley and Jefferson Counties, West Virginia having aggregate approximate deposits and loans of $181 million and $46 million, respectively. This transaction is expected to close early in Q2 2020.

Results of Operations

Total revenue for fourth quarter 2019, consisting of net interest income and noninterest income, increased 9.0 percent to $24.2 million, principally as a result of higher net interest income compared to $22.2 million for the fourth quarter 2018. For full year 2019, total revenue was $96.3 million compared to $87.2 million for 2018, a 10.4 percent increase primarily as a result of higher net interest income, increased realized securities gains and the gain on the sale of SIS.

For the fourth quarter of 2019, net interest income was $19.8 million, an increase of 9.8 percent from the $18.1 million reported in the prior-year fourth quarter and a 2.1 percent increase compared to the linked quarter. The net interest margin for fourth quarter 2019 remained unchanged from the linked quarter at 3.63 and increased from 3.61 percent for the year-ago quarter. Excluding the impact of accretion and amortization of fair value acquisition accounting adjustments, Summit’s net interest margin would have been 3.60 percent for Q4 2019, 3.59 percent for Q3 2019 and 3.57 percent for Q4 2018.

Noninterest income, consisting primarily of service fee income from community banking activities and trust and wealth management fees, for fourth quarter 2019 was $4.40 million compared to $4.19 million for the comparable period of 2018. Excluding realized securities gains, noninterest income was $4.00 million for fourth quarter 2019, compared to $4.39 million reported for fourth quarter 2018 and was $3.31 million for the linked quarter. The lower levels of 2019 noninterest income compared to 2018 periods are primarily due to the elimination of insurance commission revenue as result of SIS’ sale in Q2 2019.

We recorded a $500,000 provision for loan losses during fourth quarter 2019 and 2018. Our provision continues to be directionally consistent with changes in the credit quality in our loan portfolio.

Q4 2019 total noninterest expense increased 5.6 percent to $13.2 million compared to $12.5 million for the prior-year fourth quarter and increased 2.8 percent compared to the linked quarter.

Noninterest expense for full year 2019 increased 10.6 percent compared to 2018. Our increased noninterest expense is principally due to expenses associated with the acquired PBI operations (including merger-related expenses), increased write-downs of foreclosed properties and to deferred director compensation plan expense, which totaled $800,000 in 2019 compared to income of $250,000 during 2018.

Balance Sheet

At December 31, 2019, total assets were $2.40 billion, an increase of $202.6 million, or 9.2 percent since December 31, 2018. Total loans, net of unearned fees and allowance for loan losses, were $1.90 billion at December 31, 2019, up $218.4 million, or 13.0 percent, from the $1.68 billion reported at year-end 2018. Loans, excluding mortgage warehouse lines of credit, increased $80.5 million during the quarter, or 18.9 percent (on an annualized basis), and have increased $131.4 million, or 7.9 percent (on an annualized basis) since year-end 2018.

At December 31, 2019, core deposits were $1.68 billion, an increase of $161.0 million or 10.6 percent during fourth quarter 2019 -- as checking deposits increased $46.8 million or 5.6 percent, core time deposits increase by $1.9 million or 0.5 percent and savings deposits increased $112.2 million or 36.7 percent, principally attributable to the growth in our online savings product.

Shareholders’ equity was $247.8 million as of December 31, 2019 compared to $219.8 million at December 31, 2018. Tangible book value per common share increased to $18.11 at December 31, 2019 compared to $15.75 at December 31, 2018. Summit had 12,408,542 outstanding common shares at year end 2019 compared to 12,312,933 at year end 2018.

Asset Quality

As of December 31, 2019, nonperforming assets (“NPAs”), consisting of nonperforming loans, foreclosed properties and repossessed assets, improved to $30.8 million, or 1.28 percent of assets. This compares to $33.7 million, or 1.45 percent of assets at the linked quarter-end, and $36.5 million, or 1.66 percent of assets at year end 2018.

Fourth quarter 2019 net loan charge-offs were $367,000, or 0.08 percent of average loans annualized, while $500,000 was added to the allowance for loan losses through the provision for loan losses. The allowance for loan losses stood at 0.68 percent of total loans at December 31, 2019, compared to 0.77 percent at year-end 2018.

About the Company

Summit Financial Group, Inc. is a $2.40 billion financial holding company headquartered in Moorefield, West Virginia. Summit provides community banking services primarily in the Eastern Panhandle and Southern regions of West Virginia and the Northern, Shenandoah Valley and Southwestern regions of Virginia, through its bank subsidiary, Summit Community Bank, Inc., which operates thirty-six banking locations.

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.



SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF)
Quarterly Performance Summary (unaudited) -- Q4 2019 vs Q4 2018
	For the Quarter Ended					Percent
Dollars in thousands	12/31/2019		12/31/2018			Change
Statements of Income
Interest income
Loans, including fees	$	24,772	$	22,659		9.3	%
Securities	2,195		2,527			-13.1	%
Other	105		127			-17.3	%
Total interest income	27,072		25,313			6.9	%
Interest expense
Deposits	5,952		5,103			16.6	%
Borrowings	1,292		2,158			-40.1	%
Total interest expense	7,244		7,261			-0.2	%

Net interest income	19,828		18,052			9.8	%
Provision for loan losses	500		500			—	%
Net interest income after provision for loan losses	19,328		17,552			10.1	%

Noninterest income
Insurance commissions	90		1,132			-92.0	%
Trust and wealth management fees	734		627			17.1	%
Service charges on deposit accounts	1,377		1,209			13.9	%
Bank card revenue	906		809			12.0	%
Realized securities gains (losses)	403		(205		)	n/m
Bank owned life insurance income	310		248			25.0	%
Other income	584		367			59.1	%
Total noninterest income	4,404		4,187			5.2	%
Noninterest expense
Salaries and employee benefits	7,099		6,928			2.5	%
Net occupancy expense	815		836			-2.5	%
Equipment expense	1,278		1,139			12.2	%
Professional fees	412		385			7.0	%
Advertising and public relations	214		193			10.9	%
Amortization of intangibles	401		410			-2.2	%
FDIC premiums	—		140			n/m
Bank card expense	454		395			14.9	%
Foreclosed properties expense, net of losses	262		507			-48.3	%
Merger-related expenses	98		59			66.1	%
Other expenses	2,126		1,474			44.2	%
Total noninterest expense	13,159		12,466			5.6	%
Income before income taxes	10,573		9,273			14.0	%
Income tax expense	2,424		1,823			33.0	%
Net income	$	8,149	$	7,450		9.4	%



SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF)
Quarterly Performance Summary (unaudited) -- Q4 2019 vs Q4 2018

	For the Quarter Ended						Percent
	12/31/2019			12/31/2018			Change
Per Share Data
Earnings per common share
Basic	$	0.66		$	0.60		10.0	%
Diluted	$	0.65		$	0.60		8.3	%

Cash dividends	$	0.15		$	0.14		7.1	%
Dividend payout ratio	22.3		%	23.3		%	-4.3	%

Average common shares outstanding
Basic	12,400,932			12,358,104			0.3	%
Diluted	12,458,702			12,407,678			0.4	%

Common shares outstanding at period end	12,408,542			12,312,933			0.8	%

Performance Ratios
Return on average equity	13.32		%	13.85		%	-3.8	%
Return on average tangible equity	15.25		%	16.41		%	-7.1	%
Return on average assets	1.39		%	1.38		%	0.7	%
Net interest margin (A)	3.63		%	3.61		%	0.6	%
Efficiency ratio (B)	52.25		%	51.02		%	2.4	%


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

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



SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF)
Annual Performance Summary (unaudited) -- 2019 vs 2018
	For the Year Ended				Percent
Dollars in thousands	12/31/2019		12/31/2018		Change
Statements of Income
Interest income
Loans, including fees	$	97,115	$	85,283	13.9	%
Securities	9,361		9,587		-2.4	%
Other	595		539		10.4	%
Total interest income	107,071		95,409		12.2	%
Interest expense
Deposits	23,697		17,675		34.1	%
Borrowings	6,290		7,937		-20.8	%
Total interest expense	29,987		25,612		17.1	%

Net interest income	77,084		69,797		10.4	%
Provision for loan losses	1,550		2,250		-31.1	%
Net interest income after provision for loan losses	75,534		67,547		11.8	%

Noninterest income
Insurance commissions	1,911		4,320		-55.8	%
Trust and wealth management fees	2,564		2,653		-3.4	%
Service charges on deposit accounts	5,094		4,631		10.0	%
Bank card revenue	3,536		3,152		12.2	%
Realized securities gains	1,938		622		211.6	%
Gain on sale Summit Insurance Services, LLC	1,906		—		n/a
Bank owned life insurance income	1,044		1,022		2.2	%
Other income	1,210		1,022		18.4	%
Total noninterest income	19,203		17,422		10.2	%
Noninterest expense
Salaries and employee benefits	29,066		27,478		5.8	%
Net occupancy expense	3,417		3,364		1.6	%
Equipment expense	4,972		4,411		12.7	%
Professional fees	1,678		1,607		4.4	%
Advertising and public relations	698		654		6.7	%
Amortization of intangibles	1,701		1,671		1.8	%
FDIC premiums	88		830		-89.4	%
Bank card expense	1,820		1,475		23.4	%
Foreclosed properties expense, net of losses	2,498		1,350		85.0	%
Merger-related expenses	617		144		328.5	%
Other expenses	8,599		6,889		24.8	%
Total noninterest expense	55,154		49,873		10.6	%
Income before income taxes	39,583		35,096		12.8	%
Income tax expense	7,717		7,024		9.9	%
Net income	$	31,866	$	28,072	13.5	%



SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF)
Annual Performance Summary (unaudited) -- 2019 vs 2018

	For the Year Ended						Percent
	12/31/2019			12/31/2018			Change
Per Share Data
Earnings per common share
Basic	$	2.55		$	2.27		12.3	%
Diluted	$	2.53		$	2.26		11.9	%

Cash dividends	$	0.59		$	0.53		11.3	%
Dividend payout ratio	23.1		%	23.3		%	-0.9	%

Average common shares outstanding
Basic	12,516,474			12,364,468			1.2	%
Diluted	12,575,145			12,424,573			1.2	%

Common shares outstanding at period end	12,408,542			12,312,933			0.8	%

Performance Ratios
Return on average equity	13.43		%	13.43		%	—	%
Return on average tangible equity	15.65		%	16.09		%	-2.7	%
Return on average assets	1.40		%	1.32		%	6.1	%
Net interest margin (A)	3.66		%	3.57		%	2.5	%
Efficiency ratio (B)	54.55		%	53.72		%	1.5	%


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

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



SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF)
Five Quarter Performance Summary (unaudited)

	For the Quarter Ended
Dollars in thousands	12/31/2019		9/30/2019		6/30/2019		3/31/2019			12/31/2018
Statements of Income
Interest income
Loans, including fees	$	24,772	$	24,940	$	24,352	$	23,051		$	22,659
Securities	2,195		2,184		2,396		2,586			2,527
Other	105		125		134		231			127
Total interest income	27,072		27,249		26,882		25,868			25,313
Interest expense
Deposits	5,952		6,214		5,967		5,564			5,103
Borrowings	1,292		1,615		1,652		1,731			2,158
Total interest expense	7,244		7,829		7,619		7,295			7,261

Net interest income	19,828		19,420		19,263		18,573			18,052
Provision for loan losses	500		500		300		250			500
Net interest income after provision for loan losses	19,328		18,920		18,963		18,323			17,552

Noninterest income
Insurance commissions	90		40		606		1,174			1,132
Trust and wealth management fees	734		632		612		586			627
Service charges on deposit accounts	1,377		1,312		1,224		1,180			1,209
Bank card revenue	906		924		893		814			809
Realized securities gains (losses)	403		453		1,086		(3		)	(205		)
Gain on sale of Summit Insurance Services, LLC	—		—		1,906		—			—
Bank owned life insurance income	310		247		248		238			248
Other income	584		151		235		241			367
Total noninterest income	4,404		3,759		6,810		4,230			4,187
Noninterest expense
Salaries and employee benefits	7,099		7,044		7,576		7,347			6,928
Net occupancy expense	815		799		880		924			836
Equipment expense	1,278		1,296		1,219		1,179			1,139
Professional fees	412		388		475		403			385
Advertising and public relations	214		177		155		153			193
Amortization of intangibles	401		404		420		476			410
FDIC premiums	—		—		88		—			140
Bank card expense	454		455		473		439			395
Foreclosed properties expense, net of losses	262		305		1,545		384			507
Merger-related expenses	98		74		382		63			59
Other expenses	2,126		1,864		2,116		2,492			1,474
Total noninterest expense	13,159		12,806		15,329		13,860			12,466
Income before income taxes	10,573		9,873		10,444		8,693			9,273
Income tax expense	2,424		1,812		1,880		1,601			1,823
Net income	$	8,149	$	8,061	$	8,564	$	7,092		$	7,450



SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF)
Five Quarter Performance Summary (unaudited)

	For the Quarter Ended
	12/31/2019			9/30/2019			6/30/2019			3/31/2019			12/31/2018
Per Share Data
Earnings per common share
Basic	$	0.66		$	0.65		$	0.68		$	0.56		$	0.60
Diluted	$	0.65		$	0.65		$	0.68		$	0.56		$	0.60

Cash dividends	$	0.15		$	0.15		$	0.15		$	0.14		$	0.14
Dividend payout ratio	22.3		%	23.0		%	21.9		%	25.0		%	23.3		%

Average common shares outstanding
Basic	12,400,932			12,412,982			12,539,095			12,717,501			12,358,104
Diluted	12,458,702			12,467,777			12,600,071			12,778,644			12,407,678

Common shares outstanding at period end	12,408,542			12,400,804			12,449,986			12,661,528			12,312,933

Performance Ratios
Return on average equity	13.32		%	13.51		%	14.62		%	12.28		%	13.85		%
Return on average tangible equity	15.25		%	15.55		%	17.02		%	14.80		%	16.41		%
Return on average assets	1.39		%	1.41		%	1.52		%	1.27		%	1.38		%
Net interest margin (A)	3.63		%	3.63		%	3.72		%	3.66		%	3.61		%
Efficiency ratio (B)	52.25		%	52.91		%	56.45		%	56.63		%	51.02		%


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

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



SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF)
Selected Balance Sheet Data (unaudited)

Dollars in thousands, except per share amounts	12/31/2019			9/30/2019			6/30/2019			3/31/2019			12/31/2018

Assets
Cash and due from banks	$	28,137		$	12,374		$	13,481		$	14,265		$	23,061
Interest bearing deposits other banks	33,751			40,296			42,994			43,689			36,479
Securities	276,355			265,347			269,920			297,126			293,284
Loans, net	1,900,425			1,838,891			1,805,850			1,725,064			1,682,005
Property held for sale	19,276			20,979			21,390			24,393			21,432
Premises and equipment, net	44,168			43,592			42,896			39,345			37,553
Goodwill and other intangible assets	23,022			23,182			23,585			29,349			25,842
Cash surrender value of life insurance policies	43,603			43,216			42,976			42,714			42,420
Other assets	34,755			35,732			36,022			33,696			38,510
Total assets	$	2,403,492		$	2,323,609		$	2,299,114		$	2,249,641		$	2,200,586

Liabilities and Shareholders' Equity
Deposits	$	1,913,237		$	1,832,285		$	1,797,493		$	1,789,032		$	1,634,826
Short-term borrowings	199,345			206,694			225,343			186,292			309,084
Long-term borrowings and subordinated debentures	20,306			20,311			20,315			20,319			20,324
Other liabilities	22,840			21,897			20,262			20,368			16,522
Shareholders' equity	247,764			242,422			235,701			233,630			219,830
Total liabilities and shareholders' equity	$	2,403,492		$	2,323,609		$	2,299,114		$	2,249,641		$	2,200,586

Book value per common share	$	19.97		$	19.55		$	18.93		$	18.45		$	17.85
Tangible book value per common share	$	18.11		$	17.68		$	17.04		$	16.13		$	15.75
Tangible common equity to tangible assets	9.4		%	9.5		%	9.3		%	9.2		%	8.9		%



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

	12/31/2019		9/30/2019		6/30/2019		3/31/2019		12/31/2018
Summit Financial Group, Inc.
CET1 Risk-based Capital	11.1	%	11.2	%	11.1	%	11.4	%	11.1	%
Tier 1 Risk-based Capital	12.1	%	12.2	%	12.1	%	12.5	%	12.2	%
Total Risk Based Capital	12.7	%	12.8	%	12.8	%	13.2	%	12.9	%
Tier 1 Leverage	10.5	%	10.4	%	10.4	%	10.2	%	10.1	%

Summit Community Bank, Inc.
CET1 Risk-based Capital	12.1	%	12.2	%	11.9	%	12.3	%	12.0	%
Tier 1 Risk-based Capital	12.1	%	12.2	%	11.9	%	12.3	%	12.0	%
Total Risk Based Capital	12.7	%	12.9	%	12.6	%	13.0	%	12.8	%
Tier 1 Leverage	10.6	%	10.4	%	10.2	%	10.0	%	10.0	%



SUMMIT FINANCIAL GROUP INC. (NASDAQ: SMMF)
Loan Composition (unaudited)

Dollars in thousands	12/31/2019		9/30/2019		6/30/2019		3/31/2019		12/31/2018

Commercial	$	207,138	$	199,391	$	204,138	$	189,248	$	194,315
Mortgage warehouse lines	126,237		145,039		101,607		49,355		39,140
Commercial real estate
Owner occupied	276,218		255,828		262,901		256,671		257,256
Non-owner occupied	629,206		567,670		574,677		585,809		573,932
Construction and development
Land and development	84,112		69,589		67,769		64,192		68,833
Construction	37,523		56,255		46,975		36,040		24,731
Residential real estate
Non-jumbo	354,963		359,399		360,752		359,107		336,977
Jumbo	70,947		69,815		70,171		69,313		73,599
Home equity	76,568		78,493		81,373		80,370		80,910
Consumer	36,470		36,982		36,715		36,046		32,460
Other	14,117		13,371		11,924		12,045		12,899
Total loans, net of unearned fees	1,913,499		1,851,832		1,819,002		1,738,196		1,695,052
Less allowance for loan losses	13,074		12,941		13,152		13,132		13,047
Loans, net	$	1,900,425	$	1,838,891	$	1,805,850	$	1,725,064	$	1,682,005



SUMMIT FINANCIAL GROUP INC. (NASDAQ: SMMF)
Deposit Composition (unaudited)

Dollars in thousands	12/31/2019		9/30/2019		6/30/2019		3/31/2019		12/31/2018
Core deposits
Non interest bearing checking	$	260,553	$	241,999	$	234,397	$	258,679	$	222,120
Interest bearing checking	630,352		602,059		588,948		560,800		523,257
Savings	418,096		305,891		301,403		310,646		284,173
Time deposits	373,125		371,178		365,275		359,141		316,914
Total core deposits	1,682,126		1,521,127		1,490,023		1,489,266		1,346,464

Brokered deposits	150,554		227,369		222,901		218,913		220,497
Other non-core time deposits	80,557		83,789		84,569		80,853		67,865
Total deposits	$	1,913,237	$	1,832,285	$	1,797,493	$	1,789,032	$	1,634,826



SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF)
Asset Quality Information (unaudited)
	For the Quarter Ended
Dollars in thousands	12/31/2019			9/30/2019			6/30/2019			3/31/2019			12/31/2018

Gross loan charge-offs	$	455		$	843		$	391		$	414		$	705
Gross loan recoveries	(88		)	(132		)	(111		)	(249		)	(307		)
Net loan charge-offs (recoveries)	$	367		$	711		$	280		$	165		$	398

Net loan charge-offs to average loans (annualized)	0.08		%	0.16		%	0.06		%	0.04		%	0.10		%

Allowance for loan losses	$	13,074		$	12,941		$	13,152		$	13,132		$	13,047
Allowance for loan losses as a percentage of period end loans	0.68		%	0.70		%	0.72		%	0.76		%	0.77		%

Nonperforming assets:
Nonperforming loans
Commercial	$	764		$	835		$	948		$	729		$	935
Commercial real estate	5,800			7,037			6,544			2,981			3,239
Residential construction and development	326			191			66			24			3,198
Residential real estate	4,404			4,461			5,657			5,928			7,506
Consumer	116			115			160			182			147
Other	100			100			100			130			—
Total nonperforming loans	11,510			12,739			13,475			9,974			15,025
Foreclosed properties
Commercial real estate	1,930			1,514			1,544			1,841			1,762
Commercial construction and development	4,601			4,909			4,910			6,326			6,479
Residential construction and development	11,169			12,847			13,132			14,347			11,543
Residential real estate	1,576			1,709			1,804			1,879			1,648
Total foreclosed properties	19,276			20,979			21,390			24,393			21,432
Other repossessed assets	17			16			12			34			5
Total nonperforming assets	$	30,803		$	33,734		$	34,877		$	34,401		$	36,462

Nonperforming loans to period end loans	0.60		%	0.69		%	0.74		%	0.57		%	0.89		%
Nonperforming assets to period end assets	1.28		%	1.45		%	1.52		%	1.53		%	1.66		%

Troubled debt restructurings
Performing	$	23,339		$	23,420		$	23,266		$	27,845		$	26,609
Nonperforming	2,337			2,443			2,915			—			388
Total troubled debt restructurings	$	25,676		$	25,863		$	26,181		$	27,845		$	26,997



Loans Past Due 30-89 Days (unaudited)
	For the Quarter Ended
Dollars in thousands	12/31/2019		9/30/2019		6/30/2019		3/31/2019		12/31/2018

Commercial	$	111	$	390	$	375	$	264	$	219
Commercial real estate	1,196		312		1,719		4,128		161
Construction and development	236		65		235		179		194
Residential real estate	4,775		5,573		5,670		2,944		6,249
Consumer	269		365		234		432		593
Other	25		63		9		52		38
Total	$	6,612	$	6,768	$	8,242	$	7,999	$	7,454



SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF)
Average Balance Sheet, Interest Earnings & Expenses and Average Rates
Q4 2019 vs Q3 2019 vs Q4 2018 (unaudited)
	Q4 2019							Q3 2019							Q4 2018
	Average			Earnings/		Yield/		Average			Earnings /		Yield /		Average			Earnings /		Yield /
Dollars in thousands	Balances			Expense		Rate		Balances			Expense		Rate		Balances			Expense		Rate

ASSETS
Interest earning assets
Loans, net of unearned interest (1)
Taxable	$	1,853,197		$	24,622	5.27	%	$	1,813,555		$	24,786	5.42	%	$	1,660,250		$	22,519	5.38	%
Tax-exempt (2)	15,738			189		4.76	%	15,903			195		4.86	%	15,322			177		4.58	%
Securities
Taxable	218,375			1,654		3.00	%	203,288			1,566		3.06	%	176,059			1,502		3.38	%
Tax-exempt (2)	69,276			686		3.93	%	79,387			782		3.91	%	132,088			1,296		3.89	%
Interest bearing deposits other banks and Federal funds sold	32,779			105		1.27	%	35,214			125		1.41	%	35,402			127		1.42	%
Total interest earning assets	2,189,365			27,256		4.94	%	2,147,347			27,454		5.07	%	2,019,121			25,621		5.03	%

Noninterest earning assets
Cash & due from banks	12,932							12,815							9,686
Premises & equipment	44,136							43,160							37,224
Other assets	103,481							104,789							109,228
Allowance for loan losses	(13,055		)					(13,276		)					(13,172		)
Total assets	$	2,336,859						$	2,294,835						$	2,162,087

LIABILITIES AND SHAREHOLDERS' EQUITY

Liabilities
Interest bearing liabilities
Interest bearing
demand deposits	$	619,939		$	1,378	0.88	%	$	594,772		$	1,621	1.08	%	$	519,465		$	1,504	1.15	%
Savings deposits	351,653			1,201		1.35	%	302,331			949		1.25	%	289,809			861		1.18	%
Time deposits	641,160			3,373		2.09	%	674,869			3,644		2.14	%	607,037			2,738		1.79	%
Short-term borrowings	188,007			1,062		2.24	%	202,425			1,372		2.69	%	270,092			1,909		2.80	%
Long-term borrowings and subordinated debentures	20,308			230		4.49	%	20,312			243		4.75	%	20,326			249		4.86	%
Total interest bearing liabilities	1,821,067			7,244		1.58	%	1,794,709			7,829		1.73	%	1,706,729			7,261		1.69	%

Noninterest bearing liabilities
Demand deposits	248,159							240,193							223,999
Other liabilities	22,856							21,320							16,138
Total liabilities	2,092,082							2,056,222							1,946,866

Shareholders' equity - common	244,777							238,613							215,221
Total liabilities and shareholders' equity	$	2,336,859						$	2,294,835						$	2,162,087

NET INTEREST EARNINGS				$	20,012						$	19,625						$	18,360

NET INTEREST MARGIN						3.63	%						3.63	%						3.61	%

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

(2) Interest income on tax-exempt securities and loans has been adjusted assuming a Federal tax rate of 21% for all periods presented. The tax equivalent adjustment resulted in an increase in interest income of $184,000, $205,000 and $308,000 for Q4 2019, Q3 2019 and Q4 2018, respectively.



SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF)
Average Balance Sheet, Interest Earnings & Expenses and Average Rates
YTD 2019 vs YTD 2018 (unaudited)
	YTD 2019							YTD 2018
	Average			Earnings /		Yield /		Average			Earnings /		Yield /
Dollars in thousands	Balances			Expense		Rate		Balances			Expense		Rate

ASSETS
Interest earning assets
Loans, net of unearned interest (1)
Taxable	$	1,782,477		$	96,499	5.41	%	$	1,626,725		$	84,716	5.21	%
Tax-exempt (2)	15,315			780		5.09	%	15,776			718		4.55	%
Securities
Taxable	205,340			6,511		3.17	%	170,912			5,341		3.13	%
Tax-exempt (2)	90,823			3,608		3.97	%	136,913			5,375		3.93	%
Interest bearing deposits other banks and Federal funds sold	39,408			595		1.51	%	38,148			539		1.41	%
Total interest earning assets	2,133,363			107,993		5.06	%	1,988,474			96,689		4.86	%

Noninterest earning assets
Cash & due from banks	12,939							9,517
Premises & equipment	41,778							36,025
Other assets	107,456							107,856
Allowance for loan losses	(13,225		)					(12,830		)
Total assets	$	2,282,311						$	2,129,042

LIABILITIES AND SHAREHOLDERS' EQUITY

Liabilities
Interest bearing liabilities
Interest bearing
demand deposits	$	586,938		$	6,394	1.09	%	$	471,725		$	4,205	0.89	%
Savings deposits	317,569			3,969		1.25	%	320,184			3,233		1.01	%
Time deposits	660,910			13,334		2.02	%	621,659			10,237		1.65	%
Short-term borrowings	194,450			5,303		2.73	%	228,142			5,993		2.63	%
Long-term borrowings and subordinated debentures	20,315			987		4.86	%	44,132			1,944		4.40	%
Total interest bearing liabilities	1,780,182			29,987		1.68	%	1,685,842			25,612		1.52	%

Noninterest bearing liabilities
Demand deposits	244,559							218,541
Other liabilities	20,341							15,574
Total liabilities	2,045,082							1,919,957

Shareholders' equity - common	237,229							209,085
Total liabilities and shareholders' equity	$	2,282,311						$	2,129,042

NET INTEREST EARNINGS				$	78,006						$	71,077

NET INTEREST MARGIN						3.66	%						3.57	%

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

(2) Interest income on tax-exempt securities and loans has been adjusted assuming a Federal tax rate of 21%. The tax equivalent adjustment resulted in an increase in interest income of $922,000 and $1,279,000 for the YTD 2019 and YTD 2018, respectively.