10-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-K

ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF

THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 31, 2019

Commission File Number 0-16587

Summit Financial Group, Inc.

(Exact name of registrant as specified in its charter)

West Virginia (State or other jurisdiction of incorporation or organization)	55-0672148 (I.R.S. Employer Identification No.)
300 N. Main Street Moorefield, West Virginia  (Address of principal executive offices)	26836 (Zip Code)

(304) 530-1000

(Registrant's telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common	SMMF	NASDAQ Capital Market

Securities registered pursuant to Section 12(g) of the Act:  None

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.

Yes ¨  No þ

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.

Yes ¨  No þ

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days.    Yes þ  No ¨

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes þ No ¨

Indicate by check mark whether the registrant is large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company.  See definitions of “large accelerated filer”, “accelerated filer”, “smaller reporting company” and "emerging growth company" in Rule 12b-2 of the Exchange Act.

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Large accelerated filer o	Accelerated filer þ
Non-accelerated filer o	Smaller reporting company o
Emerging growth company o

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes o No þ

The aggregate market value of the voting common equity held by non-affiliates of the registrant at June 30, 2019, was approximately $290,620,000.  Registrant has assumed that all of its executive officers and directors are affiliates.  Such assumption shall not be deemed to be conclusive for any other purpose.

The number of shares of the Registrant’s Common Stock outstanding on February 28, 2020 was 13,044,641

Documents Incorporated by Reference

The following lists the documents which are incorporated by reference in the Annual Report Form 10-K and the Parts and Items of the Form 10-K into which the documents are incorporated.

Document	Part of Form 10-K into which document is incorporated
Portions of the Registrant's Proxy Statement for the Annual Meeting of Shareholders to be held May 19, 2020	Part III - Items 10, 11, 12, 13 and 14

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SUMMIT FINANCIAL GROUP, INC

Form 10-K Index

Table of contents

		Page
PART I.
Item 1.	Business	1-11
Item 1A.	Risk Factors	12-20
Item 1B.	Unresolved Staff Comments	21
Item 2.	Properties	21
Item 3.	Legal Proceedings	21
Item 4.	Mine Safety Disclosures	21
PART II.
Item 5.	Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities	22
Item 6.	Selected Financial Data	23
Item 7.	Management's Discussion and Analysis of Financial Condition and Results of Operations	24-41
Item 7A.	Quantitative and Qualitative Disclosures about Market Risk	42
Item 8.	Financial Statements and Supplementary Data	45-90
Item 9.	Changes in and Disagreements with Accountants on Accounting and Financial Disclosure	91
Item 9A.	Controls and Procedures	91
Item 9B.	Other Information	91
PART III.
Item 10.	Directors, Executive Officers and Corporate Governance	92
Item 11.	Executive Compensation	92
Item 12.	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters	92
Item 13.	Certain Relationships and Related Transactions and Director Independence	93
Item 14.	Principal Accounting Fees and Services	93
PART IV.
Item 15.	Exhibits, Financial Statement Schedules	94-95
Item 16.	Form 10-K Summary	95
SIGNATURES		96

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PART I.

Item 1.  Business

Summit Financial Group, Inc. (“Company” or “Summit”) is a $2.40 billion financial holding company headquartered in Moorefield, West Virginia incorporated on March 5, 1987.  We provide community banking services primarily in the Eastern Panhandle, Southern and North Central regions of West Virginia and the Northern, Shenandoah Valley and Southwestern regions of Virginia.  We provide these services through our community bank subsidiary, Summit Community Bank (“Summit Community” or “Bank”).  

Community Banking

We provide a wide range of community banking services, including demand, savings and time deposits; commercial, real estate and consumer loans; trust and wealth management services; and cash management services.  The deposits of Summit Community are insured by the Federal Deposit Insurance Corporation ("FDIC").

In order to compete with other financial service providers, we principally rely upon personal relationships established by our officers, directors and employees with our clients and specialized services tailored to meet our clients’ needs.  We have maintained a strong community orientation by, among other things, supporting the active participation of staff members in local charitable, civic, school, religious and community development activities.  We also have a marketing program that primarily utilizes local radio and newspapers to advertise.  Banking, like most industries, is becoming more dependent on technology as a means of marketing to customers, including the Internet, which we also utilize.  This approach, coupled with continuity of service by the same staff members, enables Summit Community to develop long-term customer relationships, maintain high quality service and respond quickly to customer needs.  We believe that our emphasis on local relationship banking, together with a prudent approach to lending, are important factors in our success and growth.

All operational and support functions that are transparent to clients are centralized in order to achieve consistency and cost efficiencies in the delivery of products and services by each banking office.  The central office provides services such as data processing, deposit operations, accounting, treasury management, loan administration, loan review, compliance, risk management and internal auditing to enhance our delivery of quality service.  We also provide overall direction in the areas of credit policy and administration, strategic planning, marketing, investment portfolio management, human resources administration and other financial and administrative services. The banking offices work closely with us to develop new products and services needed by their customers and to introduce enhancements to existing products and services.

Lending

Our primary lending focus is providing commercial loans to local businesses with annual sales generally up to $75 million and providing owner-occupied real estate loans to individuals.  We typically do not seek credit relationships of more than $25 million but will consider larger lending relationships exhibiting above-average credit quality.  Under our commercial banking strategy, we focus on offering a broad line of financial products and services to small and medium-sized businesses through full service banking offices.  Summit Community Bank has senior management with extensive lending experience.  These managers exercise substantial authority over credit and pricing decisions, subject to loan committee approval for larger credits.

We segment our loan portfolio in to the following major lending categories: commercial, commercial real estate, construction and land development, residential real estate, consumer and mortgage warehouse lines of credit. Commercial loans are loans made to commercial borrowers that are not secured by real estate. These encompass loans secured by accounts receivable, inventory and equipment, as well as unsecured loans. Commercial real estate loans consist of commercial mortgages, which generally are secured by nonresidential and multi-family residential properties. Commercial real estate loans are made to many of the same customers and carry similar industry risks as the commercial loan portfolio. Construction and development loans are loans made for the purpose of financing construction or development projects. This portfolio includes commercial and residential land development loans, one-to-four family housing construction, both pre-sold and speculative in nature, multi-family housing construction, non-residential building construction and undeveloped land. Residential real estate loans are mortgage loans to consumers and are secured primarily by a first lien deed of trust. These loans are traditional one-to-four family residential mortgages. Also included in this category of loans are second liens on one-to-four family properties, commercial loans secured by one-to-four family residence and home equity loans. Consumer loans are loans that establish consumer credit that is granted for the consumer’s personal use. These loans include automobile loans and recreational vehicle loans, as well as personal secured and unsecured loans. Our mortgage warehouse lines of credit result solely from a participation arrangement with a regional bank to fund residential mortgage warehouse lines of medium- and large-sized mortgage originators located throughout the United States.

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 Our loan underwriting guidelines and standards are consistent with the prudent banking practices applicable to the relevant exposure and are updated periodically and presented to the Board of Directors for approval. The purpose of these standards and guidelines are:  to grant loans on a sound and collectible basis; to invest available funds in a safe and profitable manner; to serve the legitimate credit needs of our primary market area; and to ensure that all loan applicants receive fair and equal treatment in the lending process. It is the intent of the underwriting guidelines and standards to: minimize losses by carefully investigating the credit history of each applicant; verify the source of repayment and the ability of the applicant to repay; collateralize those loans in which collateral is deemed to be required; exercise care in the documentation of the application, review, approval and origination process; and administer a comprehensive loan collection program.

Our real estate underwriting loan-to-value (“LTV”) policy limits are at or below current bank regulatory guidelines, as follows:

	Regulatory LTV Guideline	Summit LTV Policy Limit
Undeveloped land	65%	65%
Land development	75%	70%
Land development - Finished building lots	85%	85%
Construction:
Commercial, multifamily and other non-residential	80%	80%
1-4 family residential, consumer borrower	85%	85%
1-4 family residential, pre-sold commercial borrower	80%	80%
1-4 family residential, spec, commercial borrower	80%	70%
Improved property:
Residential real estate - nonowner occupied	85%	85%
Commercial real estate - owner occupied	85%	85%
Commercial real estate - nonowner occupied	85%	85%
Owner occupied 1-4 family	90%	90%
Home equity	90%	90%

Exceptions are permitted to these regulatory guidelines as long as such exceptions are identified, monitored and reported to the Board of Directors at least quarterly and the total of such exceptions do not exceed 100% of Summit Community’s total regulatory capital, which totaled $257.1 million as of December 31, 2019.  As of this date, we had loans approximating $106.3 million which exceeded the above regulatory LTV guidelines, as follows:

Undeveloped land	$	6.0	million
Land development	$	5.0	million
Land development - Finished building lots	$	2.3	million
Construction:
Commercial, multifamily and other non-residential	$	11.9	million
1-4 family residential, consumer borrower	$	0.3	million
1-4 family residential, pre-sold, commercial borrower	$	0.1	million
1-4 family residential, spec, commercial borrower	$	3.7	million
Improved property:
Residential real estate - nonowner occupied	$	10.2	million
Commercial real estate - owner occupied	$	18.7	million
Commercial real estate - nonowner occupied	$	29.1	million
Owner occupied 1-4 family	$	18.5	million
Home equity	$	0.5	million

Our underwriting standards and practice are designed to originate both fixed and variable rate loan products, consistent with the underwriting guidelines discussed above. Adjustable rate and variable rate loans are underwritten, giving consideration both to the loan’s initial rate and to higher assumed rates, commensurate with reasonably anticipated market conditions.  Accordingly, we want to insure that adequate primary repayment capacity exists to address both future increases in interest rates and fluctuations in the underlying cash flows available for repayment.  Historically, we have not offered “payment option ARM” loans.  Further, we have had no loan portfolio products which were specifically designed for “sub-prime” borrowers (defined as consumers with a credit score of less than 599).

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Supervision and Regulation

General

We are subject to regulation by the Board of Governors of the Federal Reserve System (“FRB”), the West Virginia Division of Financial Institutions, the Securities and Exchange Commission (the “SEC”) and other federal and state regulators.  As a financial holding company, we are subject to the restrictions of the Bank Holding Company Act of 1956, as amended (“BHCA”), are registered pursuant to its provisions and are subject to examination by the FRB.  As a financial holding company doing business in West Virginia, we are also subject to regulation by and must submit annual reports to the West Virginia Division of Financial Institutions.

The BHCA prohibits the acquisition by a financial holding company of direct or indirect ownership of more than five percent (5%) of the voting shares of any bank within the United States without prior approval of the FRB. With certain exceptions, a financial holding company is prohibited from acquiring direct or indirect ownership or control of more than five percent (5%) of the voting shares of any company that is not a bank and from engaging directly or indirectly in business unrelated to the business of banking or managing or controlling banks.

The FRB, in its Regulation Y, permits financial holding companies to engage in non-banking activities closely related to banking or managing or controlling banks.  Approval of the FRB is necessary to engage in these activities or to make acquisitions of corporations engaging in these activities as the FRB determines whether these acquisitions or activities are in the public interest. In addition, by order, and on a case by case basis, the FRB may approve other non-banking activities.

The BHCA permits us to purchase or redeem our own securities.  However, Regulation Y provides that prior notice must be given to the FRB if the total consideration for such purchase or consideration, when aggregated with the net consideration paid by us for all such purchases or redemptions during the preceding 12 months is equal to ten percent (10%) or more of our consolidated net worth.  Prior notice is not required if (i) both before and immediately after the redemption, the financial holding company is well capitalized; (ii) the financial holding company is well managed and (iii) the financial holding company is not the subject of any unresolved supervisory issues.

In July 2019, the federal bank regulators adopted final rules (the “Capital Simplifications Rules”) that, among other things, eliminated the standalone prior approval requirement in the Basel III Capital Rules for any repurchase of common stock. In certain circumstances, Summit’s repurchases of its common stock may be subject to a prior approval or notice requirement under other regulations, policies or supervisory expectations of the Federal Reserve Board. Any redemption or repurchase of preferred stock or subordinated debt remains subject to the prior approval of the Federal Reserve Board.

The FRB has broad authority to prohibit activities of bank holding companies and their non-banking subsidiaries that represent unsafe and unsound banking practices or which constitute violations of laws or regulations.  The FRB also can assess civil money penalties for certain activities conducted on a knowing and reckless basis, if those activities caused a substantial loss to a depository institution.  The penalties can be as high as $1 million for each day the activity continues.

Summit Community, our only bank subsidiary, is subject to West Virginia banking statutes and regulations, and is primarily regulated by the West Virginia Division of Financial Institutions and the FDIC.  The Bank is also subject to regulations promulgated by the FRB.  As a member of the FDIC, Summit Community’s deposits are insured as required by federal law.  Bank regulatory authorities regularly examine revenues, loans, investments, management practices and other aspects of Summit Community.  These examinations are conducted primarily to protect depositors and not shareholders.  In addition to these regular examinations, the Bank must furnish to regulatory authorities quarterly reports containing full and accurate statements of its affairs.

Because we are a public company, we are subject to regulation by the SEC.  SEC regulations require us to disclose certain types of business and financial data on a regular basis to the SEC and to our shareholders.  We are required to file annual, quarterly and current reports with the SEC.  We prepare and file an annual report on Form 10-K with the SEC that contains detailed financial and operating information, as well as a management response to specific questions about our operations.  SEC regulations require that our annual reports to shareholders contain certified financial statements and other specific items such as management’s discussion and analysis of our financial condition and results of operations.  We must also file quarterly reports with the SEC on Form 10-Q that contain detailed financial and operating information for the prior quarter and we must file current reports on Form 8-K to provide the pubic with information on recent material events.

In addition to periodic reporting to the SEC, we are subject to proxy rules and tender offer rules issued by the SEC.  Our officers, directors and principal shareholders (holding 10% or more of our stock) must also submit reports to the SEC regarding

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their holdings of our stock and any changes to such holdings and they are subject to short-swing profit liability.  Because we are traded on the NASDAQ, we are also subject to the listing standards of NASDAQ.

Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010

The “Dodd-Frank Wall Street Reform and Consumer Protection Act” (the “Dodd-Frank Act”), which is complex and broad in scope, established the Bureau of Consumer Financial Protection (the “CFPB”), which has extensive regulatory and enforcement powers over consumer financial products and services, and the Financial Stability Oversight Council, which has oversight authority for monitoring systemic risk.  We will be required to comply with the Consumer Financial Protection Act and the CFPB’s rules; however, these rules will be enforced by our primary regulator, the FRB, not the CFPB.  In addition, the Dodd-Frank Act alters the authority and duties of the federal banking and securities regulatory agencies, implements certain corporate governance requirements for all public companies, including financial institutions with regard to executive compensation, proxy access by shareholders and certain whistleblower provisions and restricts certain proprietary trading and hedge fund and private equity activities of banks and their affiliates.  Although the regulations that directly affect our business have been adopted, many of the provisions of the Dodd-Frank Act are subject to final rulemaking by the U.S. financial regulatory agencies and the implications of the Dodd-Frank Act for our business will depend to some extent on how such rules are adopted and implemented by the primary U.S. financial regulatory agencies.

Bank Holding Company Activities

In general, the BHC Act limits the business of bank holding companies to banking, managing or controlling banks and other activities that the FRB has determined to be so closely related to banking as to be a proper incident thereto. In addition, bank holding companies that qualify and elect to be financial holding companies may engage in any activity, or acquire and retain the shares of a company engaged in any activity, that is either (i) financial in nature or incidental to such financial activity (as determined by the FRB in consultation with the Secretary of the Treasury) or (ii) complementary to a financial activity and does not pose a substantial risk to the safety and soundness of depository institutions or the financial system generally (as solely determined by the FRB), without prior approval of the FRB.

Activities that are financial in nature include securities underwriting and dealing, insurance underwriting and making merchant banking investments. Some examples of non-banking activities which presently may be performed by a financial holding company are: making or acquiring, for its own account or the account of others, loans and other extensions of credit; operating as an industrial bank, or industrial loan company, in the manner authorized by state law; servicing loans and other extensions of credit; performing or carrying on any one or more of the functions or activities that may be performed or carried on by a trust company in the manner authorized by federal or state law; acting as an investment or financial advisor; leasing real or personal property; making equity or debt investments in corporations or projects designed primarily to promote community welfare, such as the economic rehabilitation and the development of low income areas; providing bookkeeping services or financially oriented data processing services for the holding company and its subsidiaries; acting as an insurance agent or a broker; acting as an underwriter for credit life insurance, which is directly related to extensions of credit by the financial holding company system; providing courier services for certain financial documents; providing management consulting advice to non-affiliated banks; selling retail money orders having a face value of not more than $1,000, traveler’s checks and U.S. savings bonds; performing appraisals of real estate; arranging commercial real estate equity financing under certain limited circumstances; providing securities brokerage services related to securities credit activities; underwriting and dealing in government obligations and money market instruments; providing foreign exchange advisory and transactional services; and acting, under certain circumstances, as futures commission merchant for non-affiliated persons in the execution and clearance on major commodity exchanges of futures contracts and options.

To maintain financial holding company status, a financial holding company and all of its depository institution subsidiaries must be “well capitalized” and “well managed.” A depository institution subsidiary is considered to be “well capitalized” if it satisfies the requirements for this status discussed in the section captioned “Capital Requirements” included elsewhere in this item. A depository institution subsidiary is considered “well managed” if it received a composite rating and management rating of at least “satisfactory” in its most recent examination. A financial holding company’s status will also depend upon it maintaining its status as “well capitalized” and “well managed’ under applicable FRB regulations. If a financial holding company ceases to meet these capital and management requirements, the FRB’s regulations provide that the financial holding company must enter into an agreement with the FRB to comply with all applicable capital and management requirements. Until the financial holding company returns to compliance, the FRB may impose limitations or conditions on the conduct of its activities and the company may not commence any of the broader financial activities permissible for financial holding companies or acquire a company engaged in such financial activities without prior approval of the FRB. If the company does not return to compliance within 180 days, the FRB may require divestiture of the holding company’s depository institutions.

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Bank holding companies and banks must also be both well capitalized and well managed in order to acquire banks located outside their home state.

In order for a financial holding company to commence any new activity permitted by the BHC Act or to acquire a company engaged in any new activity permitted by the BHC Act, each insured depository institution subsidiary of the financial holding company must have received a rating of at least “satisfactory” in its most recent examination under the Community Reinvestment Act. See the section captioned “Community Reinvestment Act” included elsewhere in this item.

The FRB has the power to order any bank holding company or its subsidiaries to terminate any activity or to terminate its ownership or control of any subsidiary when the FRB has reasonable grounds to believe that continuation of such activity or such ownership or control constitutes a serious risk to the financial soundness, safety or stability of any bank subsidiary of the bank holding company.

The Dodd-Frank Act amends the BHC Act to require the federal financial regulatory agencies to adopt rules that prohibit banks and their affiliates from engaging in proprietary trading and investing in and sponsoring certain unregistered investment companies (defined as hedge funds and private equity funds). The statutory provision is commonly called the “Volcker Rule”. In July, 2019, the federal banking agencies adopted a final rule implementing sections of the Economic Growth, Regulatory Relief and Consumer Protection Act to grant an exclusion from the Volcker Rule for community banks with few than $10 billion in total consolidated assets and total trading assets, as well as liabilities that are equal to or less than five percent of their total consolidated assets. Not only are we now excluded from the Volker Rule due to our asset size, the Volcker Rule has not had a material impact on our operations as we do not generally engage in activities prohibited by the Volcker Rule.

The BHC Act, the Bank Merger Act, the West Virginia Banking Code and other federal and state statutes regulate acquisitions of commercial banks. The BHC Act requires the prior approval of the FRB for the direct or indirect acquisition by a bank holding company of more than 5.0% of the voting shares of a commercial bank or its parent holding company. Under the Bank Merger Act, the prior approval of the FRB or other appropriate bank regulatory authority is required for a member bank to merge with another bank or purchase the assets or assume the deposits of another bank. In reviewing applications seeking approval of merger and acquisition transactions, the bank regulatory authorities will consider, among other things, the competitive effect and public benefits of the transactions, the capital position of the combined organization, the risks to the stability of the U.S. banking or financial system, the applicant’s performance record under the Community Reinvestment Act (see the section captioned “Community Reinvestment Act” included elsewhere in this item) and its compliance with fair housing and other consumer protection laws and the effectiveness of the subject organizations in combating money laundering activities.

Dividends

The principal source of our liquidity is dividends from Summit Community. The prior approval of the Federal Reserve is required if the total of all dividends declared by a state-chartered member bank in any calendar year would exceed the sum of the bank’s net profits for that year and its retained net profits for the preceding two calendar years, less any required transfers to surplus or to fund the retirement of preferred stock. Federal law also prohibits a state-chartered, member bank from paying dividends that would be greater than the bank’s undivided profits. Summit Community is also subject to limitations under West Virginia state law regarding the level of dividends that may be paid.

In addition, the Company and Summit Community are subject to other regulatory policies and requirements relating to the payment of dividends, including requirements to maintain adequate capital above regulatory minimums. The appropriate federal regulatory authority is authorized to determine under certain circumstances relating to the financial condition of a bank holding company or a bank that the payment of dividends would be an unsafe or unsound practice and to prohibit payment thereof. The appropriate federal regulatory authorities have stated that paying dividends that deplete a bank’s capital base to an inadequate level would be an unsafe and unsound banking practice and that banking organizations should generally pay dividends only out of current operating earnings.

Credit and Monetary Policies and Related Matters

Summit Community is affected by the fiscal and monetary policies of the federal government and its agencies, including the FRB.  An important function of these policies is to curb inflation and control recessions through control of the supply of money and credit.  The operations of Summit Community are affected by the policies of government regulatory authorities, including the FRB, which regulates money and credit conditions through open-market operations in United States Government and Federal agency securities, adjustments in the discount rate on member bank borrowings and requirements against deposits and regulation of interest rates payable by member banks on time and savings deposits.  These policies have a significant influence

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on the growth and distribution of loans, investments and deposits, and interest rates charged on loans, or paid for time and savings deposits, as well as yields on investments.  The FRB has had a significant effect on the operating results of commercial banks in the past and is expected to continue to do so in the future.  Future policies of the FRB and other authorities and their effect on future earnings cannot be predicted.

The FRB has a policy that a financial holding company is expected to act as a source of financial and managerial strength to each of its subsidiary banks and to commit resources to support each such subsidiary bank.  Under the source of strength doctrine, the FRB may require a financial holding company to contribute capital to a troubled subsidiary bank and may charge the financial holding company with engaging in unsafe and unsound practices for failure to commit resources to such a subsidiary bank.  This capital injection may be required at times when Summit may not have the resources to provide it.  Any capital loans by a holding company to any subsidiary bank are subordinate in right of payment to deposits and to certain other indebtedness of such subsidiary bank.  In addition, the Crime Control Act of 1990 provides that in the event of a financial holding company's bankruptcy, any commitment by such holding company to a Federal bank or thrift regulatory agency to maintain the capital of a subsidiary bank will be assumed by the bankruptcy trustee and entitled to a priority of payment.

Capital Requirements

Our bank subsidiary, Summit Community, is subject to various regulatory capital requirements administered by the banking regulatory agencies. Under the capital adequacy guidelines and the regulatory framework for prompt corrective action, Summit Community must meet specific capital guidelines that involve quantitative measures of its assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting practices. Summit Community’s capital amounts and classifications are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. Quantitative measures established by regulation to ensure capital adequacy require Summit Community to maintain minimum amounts and ratios of Common Equity Tier 1("CET1"), Total capital and Tier I capital (as defined in the regulations) to risk-weighted assets (as defined), and of Tier I capital (as defined) to average assets (as defined). Summit Community’s regulatory capital ratios as of December 31, 2019 are set forth in the table in Note 18 of the notes to the consolidated financial statements beginning on page 86. We believe, as of December 31, 2019, that our bank subsidiary met all capital adequacy requirements to which it was subject.

The most recent notifications from the banking regulatory agencies categorized Summit Community as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized, Summit Community must maintain minimum CET1, Total risk-based, Tier I risk-based, and Tier I leverage ratios as set forth in the table below.

The Basel III Capital Rules became effective for us on January 1, 2015, with full compliance with all of the final rule's requirements phased-in over a multi-year schedule, and was fully phased-in by January 1, 2019. As of December 31, 2019, Summit Community’s capital levels remained characterized as "well-capitalized" under the new rules.

On August 28, 2018, the FRB issued an interim final rule expanding the applicability of the FRB's small bank holding company policy statement, as required by the Economic Growth, Regulatory Relief, and Consumer Protection Act of 2018. The interim final rule raises the small bank holding company policy statement's asset threshold from $1 billion to $3 billion in total consolidated assets, and as a result, the Company was exempted from all regulatory capital guidelines, to which it previously had been subject, until such time as its consolidated assets exceed $3 billion.

On December 21, 2018, the federal banking agencies issued a joint final rule to revise their regulatory capital rules to: (i) address the upcoming implementation of the Current Expected Credit Losses ("CECL") accounting standard under GAAP; and (ii) provide an optional three-year phase-in period for the day-one adverse regulatory capital effects that banking organizations are expected to experience upon adopting CECL We implemented the CECL accounting standard on January 1, 2020, whereby we increased the allowances for loan credit losses and unfunded commitments by $8.89 million and recorded a cumulative effect adjustment to retained earnings of $7.02 million (net of deferred income taxes of $1.87 million) and intend to elect to recognize the regulatory capital impact of its adoption over the three year period.

Prompt Corrective Action.  The Federal Deposit Insurance Corporation Improvement Act of 1991 ("FDICIA") establishes a new regulatory scheme, which ties the level of supervisory intervention by bank regulatory authorities primarily to a depository institution's capital category. Among other things, FDICIA authorizes regulatory authorities to take "prompt corrective action" with respect to depository institutions that do not meet minimum capital requirements.  FDICIA establishes five capital tiers:  well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized and critically undercapitalized. The relevant capital measures, which reflect changes under the Basel III Capital Rules, are the total capital ratio, the CET1 capital ratio, the Tier 1 capital ratio and the leverage ratio.

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A bank will be (i) “well capitalized” if the institution has a total risk-based capital ratio of 10.0% or greater, a CET1 capital ratio of 6.5% or greater, a Tier 1 risk-based capital ratio of 8.0% or greater and a leverage ratio of 5.0% or greater and is not subject to any order or written directive by any such regulatory authority to meet and maintain a specific capital level for any capital measure; (ii) “adequately capitalized” if the institution has a total risk-based capital ratio of 8.0% or greater, a CET1 capital ratio of 4.5% or greater, a Tier 1 risk-based capital ratio of 6.0% or greater and a leverage ratio of 4.0% or greater and is not “well capitalized”; (iii) “undercapitalized” if the institution has a total risk-based capital ratio that is less than 8.0%, a CET1 capital ratio less than 4.5%, a Tier 1 risk-based capital ratio of less than 6.0% or a leverage ratio of less than 4.0%; (iv) “significantly undercapitalized” if the institution has a total risk-based capital ratio of less than 6.0%, a CET1 capital ratio less than 3.0%, a Tier 1 risk-based capital ratio of less than 4.0% or a leverage ratio of less than 3.0%; and (v) “critically undercapitalized” if the institution’s tangible equity is equal to or less than 2.0% of average quarterly tangible assets. An institution may be downgraded to, or deemed to be in, a capital category that is lower than indicated by its capital ratios if it is determined to be in an unsafe or unsound condition or if it receives an unsatisfactory examination rating with respect to certain matters. A bank’s capital category is determined solely for the purpose of applying prompt corrective action regulations and the capital category may not constitute an accurate representation of the bank’s overall financial condition or prospects for other purposes.”

Beginning in the first quarter of 2020, a qualifying community banking organization may elect to use the community bank leverage ratio (CBLR) framework to eliminate the requirements for calculating and reporting risk-based capital ratios. A qualifying community organization is a depository institution or its holding company that has less than $10 billion in average total consolidated assets; has off-balance-sheet exposures of 25% or less of total consolidated assets; has trading assets plus trading liabilities of 5% or less of total consolidated assets; and is not an advanced approaches banking organization. Qualifying community banking organizations that elect to use the CBLR framework and that maintain a leverage ratio of greater than 9% are considered to have satisfied the risk-based and leverage capital requirements and are considered to have met the well-capitalized ratio requirements for purposes of Section 38 of the FDICIA. A qualifying community banking organization may opt into and out of the CBLR framework by completing the associated reporting requirements on its call report. Although we presently do not anticipate opting into the CBLR framework, we will evaluate quarterly.

Community Reinvestment Act

Financial holding companies and their subsidiary banks are also subject to the provisions of the Community Reinvestment Act of 1977 (“CRA”).  Under the CRA, the FRB (or other appropriate bank regulatory agency) is required, in connection with its examination of a bank, to assess such bank’s record in meeting the credit needs of the communities served by that bank, including low and moderate income neighborhoods.  Further, such assessment is also required of any financial holding company that has applied to (i) charter a national bank, (ii) obtain deposit insurance coverage for a newly chartered institution, (iii) establish a new branch office that will accept deposits, (iv) relocate an office, or (v) merge or consolidate with, or acquire the assets or assume the liabilities of a federally-regulated financial institution.  In the case of a financial holding company applying for approval to acquire a bank or other financial holding company, the FRB will assess the record of each subsidiary of the applicant financial holding company and such records may be the basis for denying the application or imposing conditions in connection with approval of the application.  

In the most recent CRA examination by the bank regulatory authorities, Summit Community was given a “satisfactory” CRA rating.

In December 2019, the FDIC and the Office of the Comptroller of the Currency (“OCC”) jointly proposed rules that would significantly change existing CRA regulations. The proposed rules are intended to increase bank activity in low- and moderate-income communities where there is significant need for credit, more responsible lending, greater access to banking services, and improvements to critical infrastructure. The proposals change four key areas: (i) clarifying what activities qualify for CRA credit; (ii) updating where activities count for CRA credit; (iii) providing a more transparent and objective method for measuring CRA performance; and (iv) revising CRA-related data collection, record keeping, and reporting. We will continue to evaluate the impact of any changes to the regulations implementing the CRA and their impact to our financial condition, results of operations, and/or liquidity.

Graham-Leach-Bliley Act of 1999

The enactment of the Graham-Leach-Bliley Act of 1999 (the “GLB Act”) represents a pivotal point in the history of the financial services industry.  The GLB Act swept away large parts of a regulatory framework that had its origins in the Depression Era of the 1930s.  New opportunities were available for banks, other depository institutions, insurance companies and securities firms to enter into combinations that permit a single financial services organization to offer customers a more complete array of financial products and services.  The GLB Act provides a new regulatory framework through the financial

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holding company, which has as its “umbrella regulator” the FRB.  Functional regulation of the financial holding company’s separately regulated subsidiaries is conducted by their primary functional regulators.  The GLB Act makes a CRA rating of satisfactory or above necessary for insured depository institutions and their financial holding companies to engage in new financial activities.  The GLB Act specifically gives the FRB the authority, by regulation or order, to expand the list of “financial” or “incidental” activities, but requires consultation with the U.S. Treasury Department, and gives the FRB authority to allow a financial holding company to engage in any activity that is “complementary” to a financial activity and does not “pose a substantial risk to the safety and soundness of depository institutions or the financial system generally.”

Under the GLB Act, all financial institutions are required to adopt privacy policies, restrict the sharing of nonpublic customer data with nonaffiliated parties at the customer’s request and establish procedures and practices to protect customer data from unauthorized access.  We have established policies and procedures to assure our compliance with all privacy provisions of the GLB Act. Pursuant to Title V of the GLB Act, we, like all other financial institutions, are required to:

• provide notice to our customers regarding privacy policies and practices,

• inform our customers regarding the conditions under which their non-public personal information may be disclosed to non-affiliated third parties and

• give our customers an option to prevent certain disclosure of such information to non-affiliated third parties.

Deposit Acquisition Limitation

Under West Virginia banking law, an acquisition or merger is not permitted if the resulting depository institution or its holding company, including its affiliated depository institutions, would assume additional deposits to cause it to control deposits in the State of West Virginia in excess of twenty five percent (25%) of such total amount of all deposits held by insured depository institutions in West Virginia.  This limitation may be waived by the Commissioner of Banking by showing good cause.

Consumer Laws and Regulations

In addition to the banking laws and regulations discussed above, bank subsidiaries are also subject to certain consumer laws and regulations that are designed to protect consumers in transactions with banks.  Among the more prominent of such laws and regulations are the Truth in Lending Act, the Home Mortgage Disclosure Act and Regulation C, the Electronic Funds Transfer Act, the Expedited Funds Availability Act, the Equal Credit Opportunity Act, the Fair Credit Reporting Act, the Fair Debt Collection Act, the Right to Financial Privacy Act and the Fair Housing Act.  These laws and regulations mandate certain disclosure requirements and regulate the manner in which financial institutions must deal with customers when taking deposits or making loans to such customers. Bank subsidiaries must comply with the applicable provisions of these consumer protection laws and regulations as part of their ongoing customer relations.

Dodd-Frank centralized responsibility for consumer financial protection by creating the CFPB and giving it responsibility for implementing, examining and enforcing compliance with federal consumer protection laws.  The CFPB has broad rulemaking, supervisory and enforcement authority over consumer financial products and services, including deposit products, residential mortgages, home-equity loans and credit cards.  The CFPB’s functions include investigating consumer complaints, rulemaking, supervising and examining banks’ consumer transactions and enforcing rules related to consumer financial products and services including mortgage lending and servicing, fair lending requirements, and automotive finance.  Summit Community Bank, as a bank with less than $10 billion in assets, is subject to these federal consumer financial laws, but continues to be examined for compliance by the FDIC, its primary federal banking regulator.

The CFPB has issued final regulations implementing provisions of the Dodd-Frank Act that require all creditors to determine a consumer’s ability to repay a mortgage loan before making a loan.  The final rule, referred to as the Ability-to Repay (ATR)/Qualified Mortgage (QM) standards, provide that a lender making a special type of loan, known as a Qualified Mortgage, is entitled to presume that the loan complies with the ATR safe harbor requirements.  The rule establishes different types of Qualified Mortgages that are generally identified as loans with restrictions on loan features, limits on fees being charged and underwriting requirements.

USA Patriot Act of 2001

The USA Patriot Act of 2001 and its related regulations require insured depository institutions, broker-dealers and certain other financial institutions to have policies, procedures and controls to detect, prevent and report money laundering and terrorist financing.  The statute and its regulations also provide for information sharing, subject to conditions, between federal law enforcement agencies and financial institutions, as well as among financial institutions, for counter-terrorism purposes.  Federal

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banking regulators are required, when reviewing bank holding company acquisition and bank merger applications, to take into account the effectiveness of the anti-money laundering activities of the applicants. Summit expects to continue to devote significant resources to its Bank Secrecy Act/anti-money laundering program, particularly as risks persistently emerge and evolve and as regulatory expectations escalate.

Sarbanes-Oxley Act of 2002

The Sarbanes-Oxley Act of 2002 (“SOA”) addresses, among other issues, corporate governance, auditing and accounting, executive compensation and enhanced and timely disclosure of corporate information.  SOA requires our Chief Executive Officer and Chief Financial Officer each to certify that Summit’s Quarterly and Annual Reports do not contain any untrue statement of a material fact. The rules have several requirements, including requiring these officers certify that:  they are responsible for establishing, maintaining and regularly evaluating the effectiveness of our internal controls; they have made certain disclosures to our auditors and the audit committee of the Board of Directors about our internal controls; and they have included information in Summit’s Quarterly and Annual Reports about their evaluation and whether there have been significant changes in our internal controls or in other factors that could significantly affect internal controls subsequent to the evaluation.

Furthermore, in response to the directives of the SOA, NASDAQ adopted substantially expanded corporate governance criteria for the issuers of securities quoted on the NASDAQ Capital Market (the market on which our common stock is listed for trading).  The new NASDAQ rules govern, among other things, the enhancement and regulation of corporate disclosure and internal governance of listed companies and of the authority, role and responsibilities of their boards of directors and, in particular, of “independent” members of such boards of directors, in the areas of nominations, corporate governance, compensation and the monitoring of the audit and internal financial control processes.

Cybersecurity

In 2015, federal regulators issued two related statements regarding cybersecurity. One statement indicates that financial institutions should design multiple layers of security controls to establish lines of defense and to ensure that their risk management processes also address the risk posed by compromised customer credentials, including security measures to reliably authenticate customers accessing internet-based services of the financial institution. The other statement indicates that a financial institution’s management is expected to maintain sufficient business continuity planning processes to ensure the rapid recovery, resumption and maintenance of the institution’s operations after a cyber-attack involving destructive malware. A financial institution is also expected to develop appropriate processes to enable recovery of data and business operations and address rebuilding network capabilities and restoring data if the institution or its critical service providers fall victim to this type of cyber-attack. If we fail to observe the regulatory guidance, we could be subject to various regulatory sanctions, including financial penalties.

In the ordinary course of business, we rely on electronic communications and information systems to conduct our operations and to store sensitive data. We employ an in-depth, layered, defensive approach that leverages people, processes and technology to manage and maintain cybersecurity controls. We employ a variety of preventative and detective tools to monitor, block and provide alerts regarding suspicious activity, as well as to report on any suspected advanced persistent threats. Notwithstanding the strength of our defensive measures, the threat from cyber attacks is severe, attacks are sophisticated and increasing in volume and attackers respond rapidly to changes in defensive measures. While to date, we have not experienced a significant compromise, significant data loss or any material financial losses related to cybersecurity attacks, our systems and those of our customers and third-party service providers are under constant threat and it is possible that we could experience a significant event in the future. Risks and exposures related to cybersecurity attacks are expected to remain high for the foreseeable future due to the rapidly evolving nature and sophistication of these threats, as well as due to the expanding use of Internet banking, mobile banking and other technology-based products and services by us and our customers. See Item 1A. Risk Factors for a further discussion of risks related to cybersecurity.

Transactions with Affiliates

Federal law restricts subsidiary banks of a financial holding company from making certain extensions of credit to the parent financial holding company or to any of its subsidiaries; from investing in the holding company stock; and limits the ability of a subsidiary bank to take its parent company stock as collateral for the loans of any borrower. Additionally, federal law prohibits a financial holding company and its subsidiaries from engaging in certain tie-in arrangements in conjunction with the extension of credit or furnishing of services.

There are various statutory and regulatory limitations, including those set forth in sections 23A and 23B of the Federal Reserve Act and the related Federal Reserve Regulation W, governing the extent to which the bank will be able to purchase assets from or securities of or otherwise finance or transfer funds to us or our non-banking affiliates.  Among other restrictions, such

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transactions between the bank and any one affiliate (including Summit) generally will be limited to ten percent (10%) of the bank’s capital and surplus and transactions between the bank and all affiliates will be limited to twenty percent (20%) of the bank’s capital and surplus.  Furthermore, loans and extensions of credit are required to be secured in specified amounts and are required to be on terms and conditions consistent with safe and sound banking practices.

In addition, any transaction by a bank with an affiliate and any sale of assets or provisions of services to an affiliate generally must be on terms that are substantially the same, or at least as favorable, to the bank as those prevailing at the time for comparable transactions with non-affiliated companies.

Incentive Compensation

The Federal Reserve Board reviews, as part of its regular, risk-focused examination process, the incentive compensation arrangements of banking organizations, such as Summit, that are not “large, complex banking organizations.” These reviews are tailored to each organization based on the scope and complexity of the organization’s activities and the prevalence of incentive compensation arrangements. The scope and content of the U.S. banking regulators’ policies on incentive compensation are continuing to develop.

The federal bank regulatory agencies have issued joint guidance on incentive compensation policies intended to ensure that the incentive compensation policies of banking organizations do not undermine the safety and soundness of such organizations by encouraging excessive risk-taking. In addition, the Dodd-Frank Act requires the federal bank regulatory agencies and the SEC to issue regulations or guidelines requiring covered financial institutions, including the Company and Summit Community, to prohibit incentive-based payment arrangements that encourage inappropriate risks by providing compensation that is excessive or that could lead to material financial loss to the institution. A proposed rule was issued in 2016. Also, pursuant to the Dodd-Frank Act, in 2015, the SEC proposed rules that would direct stock exchanges to require listed companies to implement clawback policies to recover incentive-based compensation from current or former executive officers in the event of certain financial restatements and would also require companies to disclose their clawback policies and their actions under those policies. The Company continues to evaluate the proposed rules, both of which are subject to further rulemaking procedures.

Competition

We engage in highly competitive activities. Each activity and market served involves competition with other banks and savings institutions, as well as with non-banking and non-financial enterprises that offer financial products and services that compete directly with our products and services. We actively compete with other banks, mortgage companies and other financial service companies in our efforts to obtain deposits and make loans, in the scope and types of services offered, in interest rates paid on time deposits and charged on loans and in other aspects of banking.

Of particular note, banking laws limit the total amount we can lend to any one borrower generally to 15 percent of Summit Community’s Tier 1 capital plus its allowance for loan losses.  Summit Community evaluated the risks and rewards of lending up to this legal lending limit and established a self-imposed lending limit equal to 85 percent of its legal lending limit. Accordingly, institutions larger than Summit Community have a natural competitive advantage to serve the loan needs of larger clients as their legal lending limits are proportionally greater than ours.

In addition to competing with other banks and mortgage companies, we compete with other financial institutions engaged in the business of making loans or accepting deposits, such as savings and loan associations, credit unions, industrial loan associations, insurance companies, small loan companies, finance companies, real estate investment trusts, certain governmental agencies, credit card organizations and other enterprises.  In addition, competition for money market accounts from securities brokers has also intensified. Additional competition for deposits comes from government and private issues of debt obligations and other investment alternatives for depositors, such as money market funds.  We take an aggressive competitive posture and intend to continue vigorously competing for market share within our service areas by offering competitive rates and terms on both loans and deposits.

Employees

At February 28, 2020, we employed 383 full-time equivalent employees.

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Available Information

Our Internet website address is www.summitfgi.com and our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, current reports on Form 8-K and amendments to such filed reports with the SEC are accessible through this website free of charge as soon as reasonably practicable after we electronically file such reports with the SEC.  The information on our website is not and shall not be deemed to be, a part of this report or incorporated into any other filing with the SEC.

These reports are available at the SEC’s website at www.sec.gov that contains reports, proxy and information statements and other information regarding issuers that file electronically with the SEC.

Statistical Information

The information noted below is provided pursuant to Guide 3 – Statistical Disclosure by Bank Holding Companies. 

	Description of Information	Page Reference
1.	Distribution of Assets, Liabilities and Shareholders' Equity; Interest Rates and Interest Differential
	a. Average Balance Sheets	28
	b. Analysis of Net Interest Earnings	27
	c. Rate Volume Analysis of Changes in Interest Income and Expense	30
2.	Investment Portfolio
	a. Book Value of Investments	35
	b. Maturity Schedule of Investments	35
	c. Securities of Issuers Exceeding 10% of Shareholders’ Equity	34
3.	Loan Portfolio
	a. Types of Loans	33
	b. Maturities and Sensitivity to Changes in Interest Rates	66
	c. Risk Elements	36
	d.  Other Interest Bearing Assets	n/a
4.	Summary of Loan Loss Experience	38
5.	Deposits
	a. Breakdown of Deposits by Categories, Average Balance and Average Rate Paid	28-29
	b. Maturity Schedule of Time Certificates of Deposit and Other Time Deposits of $100,000 or More	78
6.	Return on Equity and Assets	26
7.	Short-term Borrowings	78

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Item 1A.  Risk Factors

We, like other financial holding companies, are subject to a number of risks that may adversely affect our financial condition or results of operation, many of which are outside of our direct control, though efforts are made to manage those risks while optimizing returns. Among the risks assumed are: (i) credit risk, which is the risk of loss due to loan clients or other counterparties not being able to meet their financial obligations under agreed upon terms, (ii) market risk, which is the risk of loss due to changes in the market value of assets and liabilities due to changes in market interest rates, equity prices and credit spreads, (iii) liquidity risk, which is the risk of loss due to the possibility that funds may not be available to satisfy current or future commitments based on external market issues, investor and customer perception of financial strength and events unrelated to the Company such as war, terrorism, or financial institution market specific issues and (iv) operational risk, which is the risk of loss due to human error, inadequate or failed internal systems and controls, violations of, or noncompliance with, laws, rules, regulations, prescribed practices, or ethical standards and external influences such as market conditions, fraudulent activities, disasters and security risks.

In addition to the other information included or incorporated by reference into this report, readers should carefully consider that the following important factors, among others, could materially impact our business, future results of operations and future cash flows.

RISKS RELATING TO THE ECONOMIC ENVIRONMENT

Our business may be adversely affected by conditions in financial markets and economic conditions generally.

Our business is concentrated in West Virginia and the Northern, Shenandoah Valley and Southwestern regions of Virginia.  As a result, our financial condition, results of operations and cash flows are subject to changes if there are changes in the economic conditions in these areas.  A prolonged period of economic recession or other adverse economic conditions in these areas could have a negative impact on Summit.  A significant decline in general economic conditions nationally, caused by inflation, recession, acts of terrorism, outbreak of hostilities or other international or domestic occurrences, pandemic disease, unemployment, changes in securities markets, declines in the housing market, a tightening credit environment or other factors could impact these local economic conditions and, in turn, have a material adverse effect on our financial condition and results of operations.

The soundness of other financial institutions could adversely affect us.

Financial services institutions are interrelated as a result of trading, clearing, counterparty or other relationships.  We have exposure to many different industries and counterparties and routinely execute transactions with counterparties in the financial services industry, including brokers and dealers, commercial banks, or other institutional firms.  Defaults by financial services institutions and even rumors or questions about a financial institution or the financial services industry in general, have led to market wide liquidity problems and could lead to losses or defaults by us or other institutions.  Any such losses could adversely affect our financial condition or results of operations.

The value of certain investment securities is volatile and future declines or other-than-temporary impairments could have a materially adverse effect on future earnings and regulatory capital.

Volatility in the fair value for certain investment securities, whether caused by changes in market conditions, interest rates, credit risk of the issuer, the expected yield of the security, or actual defaults in the portfolio could result in significant fluctuations in the value of the securities as well as any regulatory rulemaking which could exclude or limit the holdings of certain investment securities. This could have a material adverse impact on our accumulated other comprehensive income and shareholders’ equity depending on the direction of the fluctuations. Furthermore, future downgrades, defaults or prepayments, including the liquidation of the underlying collateral in certain securities, could result in future classifications as other-than-temporarily impaired. This could have a material impact on our future earnings, although the impact on shareholders’ equity will be offset by any amount already included in other comprehensive income for securities that were temporarily impaired.

RISKS RELATING TO OUR BUSINESS

We are subject to extensive government regulation and supervision.

The Company and Summit Community are subject to extensive federal and state regulation and supervision, which vests a significant amount of discretion in the various regulatory authorities. Banking regulations are primarily intended to protect depositors and customers, the Federal Deposit Insurance fund and the banking system as a whole, not security holders. These

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regulations and supervisory guidance affect our lending practices, capital structure, investment practices, dividend policy and growth, among other things. Congress and federal regulatory agencies continually review banking laws, regulations and policies for possible changes. The Dodd-Frank Act instituted major changes to the banking and financial institutions regulatory regimes. Other changes to statutes, regulations or regulatory policies or supervisory guidance, including changes in interpretation or implementation of statutes, regulations, policies or supervisory guidance, could affect us in substantial and unpredictable ways. Such changes could subject us to additional costs, limit the types of financial services and products we may offer and/or increase the ability of non-banks to offer competing financial services and products, among other things. Failure to comply with laws, regulations, policies or supervisory guidance could result in enforcement and other legal actions by Federal or state authorities, including criminal and civil penalties, the loss of FDIC insurance, the revocation of a banking charter, other sanctions by regulatory agencies, civil money penalties and/or reputation damage. In this regard, government authorities, including the bank regulatory agencies, are pursuing aggressive enforcement actions with respect to compliance and other legal matters involving financial activities, which heightens the risks associated with actual and perceived compliance failures. Any of the foregoing could have a material adverse effect on our business, financial condition and results of operations.

See the section captioned “Supervision and Regulation” included in Item 1. Business on page 1.

We may become subject to additional regulatory restrictions in the event that our regulatory capital levels decline.

Although the Bank is qualified as “well capitalized” under the regulatory framework for prompt corrective action as of December 31, 2019, there is no guarantee that we will not have a decline in our capital category in the future.  In the event of such a capital category decline, we would be subject to increased regulatory restrictions that could have a material adverse effect on our business, financial condition, results of operations, cash flows and/or future prospects.

If a bank is classified as undercapitalized, the bank is required to submit a capital restoration plan to the FDIC.  Pursuant to FDICIA, an undercapitalized bank is prohibited from increasing its assets, engaging in a new line of business, acquiring any interest in any company or insured depository institution, or opening or acquiring a new branch office, except under certain circumstances, including the acceptance by the FDIC of a capital restoration plan for the bank. Furthermore, if a state non-member bank is classified as undercapitalized, the FDIC may take certain actions to correct the capital position of the bank; if a bank is classified as significantly undercapitalized or critically undercapitalized, the FDIC would be required to take one or more prompt corrective actions.  These actions would include, among other things, requiring sales of new securities to bolster capital; improvements in management; limits on interest rates paid; prohibitions on transactions with affiliates; termination of certain risky activities and restrictions on compensation paid to executive officers.  If a bank is classified as critically undercapitalized, FDICIA requires the bank to be placed into conservatorship or receivership within ninety (90) days, unless the Federal Reserve determines that other action would better achieve the purposes of FDICIA regarding prompt corrective action with respect to undercapitalized banks.

Under FDICIA, banks may be restricted in their ability to accept brokered deposits, depending on their capital classification. “Well capitalized” banks are permitted to accept brokered deposits, but all banks that are not well capitalized could be restricted from accepting such deposits.  The FDIC may, on a case-by-case basis, permit banks that are adequately capitalized to accept brokered deposits if the FDIC determines that acceptance of such deposits would not constitute an unsafe or unsound banking practice with respect to the bank.  These restrictions could materially and adversely affect our ability to access lower costs funds and thereby decrease our future earnings capacity.

Our financial flexibility could be severely constrained if we are unable to renew our wholesale funding or if adequate financing is not available in the future at acceptable rates of interest.  We may not have sufficient liquidity to continue to fund new loan originations and we may need to liquidate loans or other assets unexpectedly in order to repay obligations as they mature.  Our inability to obtain regulatory consent to accept or renew brokered deposits could have a material adverse effect on our business, financial condition, results of operations, cash flows and/or future prospects and our ability to continue as a going concern.

Finally, the capital classification of a bank affects the frequency of examinations of the bank, the deposit insurance premiums paid by such bank and the ability of the bank to engage in certain activities, all of which could have a material adverse effect on our business, financial condition, results of operations, cash flows and/or future prospects.  Under FDICIA, the FDIC is required to conduct a full-scope, on-site examination of every bank at least once every twelve (12) months.  

Our decisions regarding credit risk could be inaccurate and our allowance for loan losses may be inadequate, which could materially and adversely affect our business, financial condition, results of operations, cash flows and/or future prospects.

Our loan portfolio subjects us to credit risk.  Inherent risks in lending also include fluctuations in collateral values and economic downturns.  Making loans is an essential element of our business and there is a risk that our loans will not be repaid.

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We attempt to maintain an appropriate allowance for loan losses to provide for estimated probable credit losses inherent in our loan portfolio.  As of December 31, 2019, our allowance for loan losses totaled $13.1 million, which represents approximately 0.68% of our total loans.  There is no precise method of predicting loan losses and therefore, we always face the risk that losses in future periods will exceed our allowance for loan losses and that we would need to make additional provisions to our allowance for loan losses. Our methodology for the determination of the adequacy of the allowance for loan losses is set forth in Note 8 of the accompanying consolidated financial statements.

The FDIC and the West Virginia Division of Financial Institutions review our allowance for loan and lease losses and may require us to establish additional allowances.  Additions to the allowance for loan and lease losses will result in a decrease in our net earnings and capital and could hinder our ability to grow our assets.

We do business with other financial institutions that could experience financial difficulty.

We do business through check clearing and the purchase and sale of loan participations with other financial institutions.  Because these financial institutions have many risks, as do we, we could be adversely affected should one of these financial institutions experience significant financial difficulties or fail to comply with our agreements with them.

We may elect or be compelled to seek additional capital in the future, but capital may not be available when it is needed.

We are required by federal and state regulatory authorities to maintain adequate levels of capital to support our operations.  In addition, we may elect to raise additional capital to support our business or to finance acquisitions, if any, or we may otherwise elect to raise additional capital.  Our ability to raise additional capital, if needed, will depend on conditions in the capital markets, economic conditions and a number of other factors, many of which are outside our control and on our financial performance.  Accordingly, we cannot be assured of our ability to raise additional capital, if needed or on terms acceptable to us. If we cannot raise additional capital when needed, it may have a material adverse effect on our financial condition, results of operations and prospects.

We rely on funding sources to meet our liquidity needs, such as brokered deposits and FHLB borrowings, which are generally more sensitive to changes in interest rates and can be adversely affected by general economic conditions.

We have frequently utilized, as a source of funds, certificates of deposit obtained through third parties that solicit funds from their customers for deposit with us, or brokered deposits.  Brokered deposits, when compared to retail deposits attracted through a branch network, are generally more sensitive to changes in interest rates and volatility in the capital markets and could reduce our net interest spread and net interest margin.  In addition, brokered deposit funding sources may be more sensitive to significant changes in our financial condition.  As of December 31, 2019, brokered deposits totaled $150.6 million, or approximately 7.9% of our total deposits, compared to brokered deposits in the amount of $220.5 million or approximately 13.5% of our total deposits at December 31, 2018.  As of December 31, 2019, approximately $72.7 million in brokered deposits, or approximately 48.3% of our total brokered deposits, mature within one year.  Our ability to continue to acquire brokered deposits is subject to our ability to price these deposits at competitive levels, which may increase our funding costs and the confidence of the market.  In addition, if our capital ratios fall below the levels necessary to be considered “well capitalized” under current regulatory guidelines, we could be restricted from using brokered deposits as a funding source.

We also have borrowings with the Federal Home Loan Bank of Pittsburgh, or the FHLB.  As of December 31, 2019, our FHLB borrowings maturing within one year totaled $199.2 million.  If we were unable to borrow from the FHLB in the future, we may be required to seek higher cost funding sources, which could materially and adversely affect our net interest income.

One aspect of our liquidity management process is establishing contingent liquidity funding plans under various scenarios in order to prepare for unexpected liquidity shortages or events.   Page 39 of Management’s Discussion and Analysis of Financial Condition and Results of Operations shows three “stressed” liquidity circumstances and our related contingency plans with respect to each.

We pursue a strategy of supplementing internal growth by acquiring other financial companies or their assets and liabilities that we believe will help us fulfill our strategic objectives and enhance our earnings. There are risks associated with this strategy.

As part of our general growth strategy, we have partially expanded our business through acquisitions. We completed the acquisition of Cornerstone Financial Services, Inc. ("Cornerstone") on January 1, 2020, the Peoples Bankshares, Inc. ("Peoples") acquisition on January 1, 2019, the First Century Bankshares, Inc. ("FCB") acquisition in April 2017 and the acquisition of Highland County Bankshares, Inc. ("HCB") in October 2016. Although our business strategy emphasizes organic

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expansion, we continue, from time to time in the ordinary course of business, to engage in preliminary discussions with potential acquisition targets. There can be no assurance that, in the future, we will successfully identify suitable acquisition candidates, complete acquisitions and successfully integrate acquired operations into our existing operations or expand into new markets. The consummation of any future acquisitions may dilute shareholder value or may have an adverse effect upon our operating results while the operations of the acquired business are being integrated into our operations. In addition, once integrated, acquired operations may not achieve levels of profitability comparable to those achieved by our existing operations, or otherwise perform as expected. Further, transaction-related expenses may adversely affect our earnings. These adverse effects on our earnings and results of operations may have a negative impact on the value of our common stock. Acquiring banks, bank branches or other businesses involves risks commonly associated with acquisitions, including:

• We may be exposed to potential asset quality issues or unknown or contingent liabilities of the banks, businesses, assets, and liabilities we acquire. If these issues or liabilities exceed our estimates, our results of operations and financial condition may be materially negatively affected;

• Prices at which acquisitions can be made fluctuate with market conditions. We have experienced times during which acquisitions could not be made in specific markets at prices we considered acceptable and expect that we will experience this condition in the future;

• The acquisition of other entities generally requires integration of systems, procedures and personnel of the acquired entity into our company to make the transaction economically successful. This integration process is complicated and time consuming and can also be disruptive to the customers of the acquired business. If the integration process is not conducted successfully and with minimal effect on the acquired business and its customers, we may not realize the anticipated economic benefits of particular acquisitions within the expected time frame, and we may lose customers or employees of the acquired business. We may also experience greater than anticipated customer losses even if the integration process is successful.

• To the extent our costs of an acquisition exceed the fair value of the net assets acquired, the acquisition will generate goodwill. As discussed below, we are required to assess our goodwill for impairment at least annually, and any goodwill impairment charge could have a material adverse effect on our results of operations and financial condition; and

• To finance an acquisition, we may borrow funds, thereby increasing our leverage and diminishing our liquidity, or issue additional shares, which could dilute the interests of our existing stockholders.

The value of our goodwill and other intangible assets may decline.

Goodwill and other intangible assets are subject to a decline, perhaps even significantly, for several reasons including if there is a significant decline in our expected future cash flows, change in the business environment, or a material and sustained decline in the market value of our stock, which may require us to take future charges related to the impairment of that goodwill and other intangible assets in the future, which could have a material adverse effect on our financial condition and results of our operations.

We operate in a very competitive industry and market.

We face aggressive competition not only from banks, but also from other financial services companies, including finance companies and credit unions and, to a limited degree, from other providers of financial services, such as money market mutual funds, brokerage firms and consumer finance companies.  A number of competitors in our market areas are larger than we are and have substantially greater access to capital and other resources, as well as larger lending limits and branch systems and offer a wider array of banking services.  Many of our non-bank competitors are not subject to the same extensive regulations that govern us.  As a result, these non-bank competitors have advantages over us in providing certain services.  Our profitability depends upon our ability to attract loans and deposits.  There is a risk that aggressive competition could result in our controlling a smaller share of our markets.  A decline in market share could adversely affect our results of operations and financial condition.

We are subject to environmental liability risk associated with lending activities.

A significant portion of our loan portfolio is secured by real property.  During the ordinary course of business, we may foreclose on and take title to properties securing certain loans.  In doing so, there is a risk that hazardous or toxic substances could be found on those properties.  If hazardous or toxic substances are found, we may be liable for remediation costs, as well as for personal injury and property damage.  Environmental laws may require us to incur substantial expenses and may materially reduce the affected property’s value or limit our ability to use or sell the affected property.  In addition, future laws or more stringent

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interpretations or enforcement policies with respect to existing laws may increase our exposure to environmental liability.  The remediation costs and any other financial liabilities associated with an environmental hazard could have a material adverse effect on our financial condition and results of operations.

Changes in interest rates could negatively impact our future earnings.

Changes in interest rates could reduce income and cash flow.  Our income and cash flow depend primarily on the difference between the interest earned on loans and investment securities and the interest paid on deposits and other borrowings.  Interest rates are beyond our control and they fluctuate in response to general economic conditions and the policies of various governmental and regulatory agencies, in particular, the FRB.  Changes in monetary policy, including changes in interest rates, will influence loan originations, purchases of investments, volumes of deposits and rates received on loans and investment securities and paid on deposits.  Our results of operations may be adversely affected by increases or decreases in interest rates or by the shape of the yield curve.

Uncertainty relating to LIBOR calculation process and potential phasing out of LIBOR may adversely affect us.

On July 27, 2017, the Chief Executive of the United Kingdom Financial Conduct Authority, which regulates LIBOR, announced that it intends to stop persuading or compelling banks to submit rates for the calibration of LIBOR to the administrator of LIBOR after 2021. The announcement indicates that the continuation of LIBOR on the current basis cannot and will not be guaranteed after 2021. It is impossible to predict whether and to what extent banks will continue to provide LIBOR submissions to the administrator of LIBOR or whether any additional reforms to LIBOR may be enacted in the United Kingdom or elsewhere. At this time, no consensus exists as to what rate or rates may become acceptable alternatives to LIBOR and it is impossible to predict the effect of any such alternatives on the value of LIBOR-based securities and variable rate loans, debentures, or other securities or financial arrangements, given LIBOR's role in determining market interest rates globally. Uncertainty as to the nature of alternative reference rates and as to potential changes or other reforms to LIBOR may adversely affect LIBOR rates and the value of LIBOR-based loans and securities in our portfolio and may impact the availability and cost of hedging instruments and borrowings. If LIBOR rates are no longer available, and we are required to implement substitute indices for the calculation of interest rates under our loan agreements with our borrowers, we may incur significant expenses in effecting the transition, and may be subject to disputes or litigation with customers over the appropriateness or comparability to LIBOR of the substitute indices, which could have a material adverse effect on our financial condition or results of operations.

The repeal of Federal prohibitions on payment of interest on demand deposits could increase our interest expense as interest rates rise.

All federal prohibitions on the ability of financial institutions to pay interest on demand deposit accounts were repealed as part of the Dodd-Frank Act. We do not yet know what interest rates other institutions may offer as market interest rates begin to increase. Our interest expense will increase and our net interest margin will decrease if we begin offering interest on demand deposits to attract additional customers or maintain current customers, which could have a material adverse effect on our business, financial condition and results of operations.

We rely heavily on our management team and the unexpected loss of key officers could adversely affect our business, financial condition, results of operations, cash flows and/or future prospects.

Our success has been and will continue to be greatly influenced by our ability to retain the services of existing senior management and, as we expand, to attract and retain qualified additional senior and middle management.  Our senior executive officers have been instrumental in the development and management of our business.  The loss of the services of any of our senior executive officers could have an adverse effect on our business, financial condition, results of operations, cash flows and/or future prospects.

Our business may be adversely affected by increasing prevalence of fraud and other financial crimes.

As a financial institution, we are subject to risk of loss due to fraud and other financial crimes. Nationally, reported incidents of fraud and other financial crimes have increased. We believe we have controls in place to detect and prevent such losses but in some cases multi-party collusion or other sophisticated methods of hiding fraud, may not be readily detected or detectable, and could result in losses that affect our financial condition and results of our operations.

Financial crime is not limited to the financial services industry. Our customers could experience fraud in their businesses, which could materially impact their ability to repay their loans, and deposit customers in all financial institutions are constantly and unwittingly solicited by others in fraud schemes that vary from easily detectable and obvious attempts to high-level and very complex international schemes that could drain an account of a significant amount and require detailed financial forensics

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to unravel. While we have controls in place, contractual agreements with our customers partitioning liability, and insurance to help mitigate the risk, none of these are guarantees that we will not experience a loss, potentially a loss that could have a material adverse effect on our financial condition, reputation and results of our operations.

Our information systems may experience failure, interruption or breach in security.

In the ordinary course of business, we rely on electronic communications and information systems to conduct our operations and to store sensitive data. Any failure, interruption or breach in security of these systems could result in significant disruption to our operations. Information security breaches and cybersecurity-related incidents may include, but are not limited to, attempts to access information, including customer and company information, malicious code, computer viruses and denial of service attacks that could result in unauthorized access, misuse, loss or destruction of data (including confidential customer information), account takeovers, unavailability of service or other events. These types of threats may derive from human error, fraud or malice on the part of external or internal parties, or may result from accidental technological failure. Further, to access our products and services our customers may use computers and mobile devices that are beyond our security control systems. Our technologies, systems, networks and software and those of other financial institutions have been and are likely to continue to be, the target of cybersecurity threats and attacks, which may range from uncoordinated individual attempts to sophisticated and targeted measures directed at us. The risk of a security breach or disruption, particularly through cyber attack or cyber intrusion, has increased as the number, intensity and sophistication of attempted attacks and intrusions from around the world have increased.

Our business requires the collection and retention of large volumes of customer data, including personally identifiable information in various information systems that we maintain and in those maintained by third parties with whom we contract to provide data services. We also maintain important internal company data such as personally identifiable information about our employees and information relating to our operations. The integrity and protection of that customer and company data is important to us. Our collection of such customer and company data is subject to extensive regulation and oversight.

Our customers and employees have been and will continue to be, targeted by parties using fraudulent e-mails and other communications in attempts to misappropriate passwords, bank account information or other personal information or to introduce viruses or other malware through "Trojan horse" programs to our information systems and/or our customers' computers. Though we endeavor to mitigate these threats through product improvements, use of encryption and authentication technology and customer and employee education, such cyber attacks against us or our merchants and our third party service providers remain a serious issue. The pervasiveness of cybersecurity incidents in general and the risks of cyber crime are complex and continue to evolve. More generally, publicized information concerning security and cyber-related problems could inhibit the use or growth of electronic or web-based applications or solutions as a means of conducting commercial transactions.

Although we make significant efforts to maintain the security and integrity of our information systems and have implemented various measures to manage the risk of a security breach or disruption, there can be no assurance that our security efforts and measures will be effective or that attempted security breaches or disruptions would not be successful or damaging. Even the most well protected information, networks, systems and facilities remain potentially vulnerable because attempted security breaches, particularly cyber attacks and intrusions, or disruptions will occur in the future and because the techniques used in such attempts are constantly evolving and generally are not recognized until launched against a target and in some cases are designed not to be detected and, in fact, may not be detected. Accordingly, we may be unable to anticipate these techniques or to implement adequate security barriers or other preventative measures and thus it is virtually impossible for us to entirely mitigate this risk. While we maintain specific “cyber” insurance coverage, which would apply in the event of various breach scenarios, the amount of coverage may not be adequate in any particular case. Furthermore, because cyber threat scenarios are inherently difficult to predict and can take many forms, some breaches may not be covered under our cyber insurance coverage. A security breach or other significant disruption of our information systems or those related to our customers, merchants and our third party vendors, including as a result of cyber attacks, could (i) disrupt the proper functioning of our networks and systems and therefore our  operations and/or those of certain of our customers; (ii) result in the unauthorized access to and destruction, loss, theft, misappropriation or release of confidential, sensitive or otherwise valuable information of ours or our customers; (iii) result in a violation of applicable privacy, data breach and other laws, subjecting us to additional regulatory scrutiny and expose the us to civil litigation, governmental fines and possible financial liability; (iv) require significant management attention and resources to remedy the damages that result; or (v) harm our reputation or cause a decrease in the number of customers that choose to do business with us. The occurrence of any of the foregoing could have a material adverse effect on our business, financial condition and results of operations.

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The negative economic effects caused by terrorist attacks, including cyber attacks, potential attacks and other destabilizing events, would likely contribute to the deterioration of the quality of our loan portfolio and could reduce our customer base, level of deposits and demand for our financial products, such as loans.

High inflation, natural disasters, acts of terrorism, including cyber attacks, an escalation of hostilities or other international or domestic occurrences and other factors could have a negative impact on the economy of the Mid-Atlantic regions in which we operate.  An additional economic downturn in our markets would likely contribute to the deterioration of the quality of our loan portfolio by impacting the ability of our customers to repay loans, the value of the collateral securing loans and may reduce the level of deposits in our bank and the stability of our deposit funding sources.  An additional economic downturn could also have a significant impact on the demand for our products and services.  The cumulative effect of these matters on our results of operations and financial condition could be adverse and material.

We are dependent upon third parties for certain information system, data management and processing services and to provide key components of our business infrastructure.

We outsource certain information system and data management and processing functions to third party providers. These third party service providers are sources of operational and informational security risk to us, including risks associated with operational errors, information system interruptions or breaches and unauthorized disclosures of sensitive or confidential client or customer information. If third party service providers encounter any of these issues, or if we have difficulty communicating with them, we could be exposed to disruption of operations, loss of service or connectivity to customers, reputational damage and litigation risk that could have a material adverse effect on our results of operations or our business.

Third party vendors provide key components of our business infrastructure such as internet connections, network access and core application processing. While we have selected these third party vendors carefully, we do not control their actions.

These services must be available on a continuous and timely basis and be in compliance with any regulatory requirements. Failure to do so could substantially harm our business.

We often purchase services from vendors under agreements that typically can be terminated on a periodic basis. There can be no assurance, however, that vendors will be able to meet their obligations under these agreements or that we will be able to compel them to do so. Risks of relying on vendors include the following:

• If an existing agreement expires or a certain service is discontinued by a vendor, then we may not be able to continue to offer our customers the same breadth of products and our operating results would likely suffer unless we are able to find an alternate supply of a similar service.

• Agreements we may negotiate in the future may commit us to certain minimum spending obligations. It is possible that we will not be able to create the market demand to meet such obligations.

• If market demand for our products increases suddenly, our current vendors might not be able to fulfill our commercial needs, which would require us to seek new arrangements or new sources of supply and may result in substantial delays in meeting market demand.

• We may not be able to control or adequately monitor the quality of services we receive from our vendors. Poor quality services could damage our reputation with our customers.

Potential problems with vendors such as those discussed above could have a significant adverse effect on our business, lead to higher costs and damage our reputation with our customers and, in turn, have a material adverse effect on our financial condition and results of operations.

Changes in accounting standards could impact reported earnings.

The accounting standard setting bodies, including the Financial Accounting Standards Board and other regulatory bodies, periodically change the financial accounting and reporting standards affecting the preparation of financial statements.  These changes are not within our control and could materially impact our financial statements.

Our business is dependent on technology and our inability to invest in technological improvements may adversely affect our results of operations, financial condition and cash flows.

The financial services industry is undergoing rapid technological changes with frequent introductions of new technology-driven products and services.  In addition to better serving customers, the effective use of technology increases efficiency and enables financial institutions to reduce costs.  Our future success depends in part upon our ability to address the needs of our customers

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by using technology to provide products and services that will satisfy customer demands for convenience, as well as create additional efficiencies in its operations.  Many of our competitors have substantially greater resources to invest in technological improvements.  We may not be able to effectively implement new technology-driven products and services or be successful in marketing these products and services to our customers, which may negatively affect our results of operations, financial condition and cash flows.

Our potential inability to integrate companies we may acquire in the future could have a negative effect on our expenses and results of operations.

On occasion, we may engage in a strategic acquisition when we believe there is an opportunity to strengthen and expand our business. To fully benefit from such acquisition, however, we must integrate the administrative, financial, sales, lending, collections and marketing functions of the acquired company.  If we are unable to successfully integrate an acquired company, we may not realize the benefits of the acquisition and our financial results may be negatively affected.  A completed acquisition may adversely affect our financial condition and results of operations, including our capital requirements and the accounting treatment of the acquisition.  Completed acquisitions may also lead to significant unexpected liabilities after the consummation of these acquisitions.

RISKS RELATING TO AN INVESTMENT IN OUR SECURITIES

Our ability to pay dividends is limited.

We are a separate and distinct legal entity from our subsidiaries. We receive substantially all of our revenue from dividends from our subsidiary bank, Summit Community.  These dividends are the principal source of funds to pay dividends on our common stock and interest and principal on our debt.  Various federal and/or state laws and regulations limit the amount of dividends that Summit Community may pay to Summit.  Also, Summit’s right to participate in a distribution of assets upon a subsidiary’s liquidation or reorganization is subject to the prior claims of the subsidiary’s creditors.  In the event Summit Community is unable to pay dividends to us, we may not be able to service debt, pay obligations or pay dividends on our common stock.  The inability to receive dividends from Summit Community could have a material adverse effect on our business, financial condition and results of operations.

Our stock price can be volatile.

Stock price volatility may make it more difficult for our shareholders to resell their common stock when they want and at prices they find attractive.  Our stock price can fluctuate significantly in response to a variety of factors, including, but not limited to, general market fluctuations, industry factors and general economic and political conditions and events, interest rate changes, credit loss trends, or changes in government regulations.

The trading volume in our common stock is less than that of larger financial services companies.

Although our common stock is listed for trading on the NASDAQ, the trading volume in our common stock is less than that of larger financial services companies. A public trading market having the desired characteristics of depth, liquidity and orderliness depends on the presence in the marketplace of willing buyers and sellers of our common stock at any given time. This presence depends on the individual decisions of investors over which we have no control. Given the lower trading volume of our common stock, significant sales of our common stock, or the expectation of these sales, could cause our stock price to fluctuate.

Our executive officers and directors own shares of our common stock, allowing management to have an impact on our corporate affairs.

As of February 20, 2020 our executive officers and directors beneficially own 15.73% (computed in accordance with Exchange Act Rule 13d-3) of the outstanding shares of our common stock.  Accordingly, these executive officers and directors will be able to impact the outcome of all matters required to be submitted to our shareholders for approval, including decisions relating to the election of directors, the determination of our day-to-day corporate and management policies and other significant corporate transactions.

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There may be future sales of additional common stock or preferred stock or other dilution of our equity, which may adversely affect the market price of our common stock.

Our board of directors is authorized to cause us to issue additional classes or series of preferred shares without any action on the part of the shareholders.  The board of directors also has the power, without shareholder approval, to set the terms of any such classes or series of preferred shares that may be issued, including voting rights, dividend rights and preferences over the common stock with respect to dividends or upon the liquidation, dissolution or winding-up of our business and other terms.  If we issue preferred shares in the future that have a preference over the common stock with respect to the payment of dividends or upon liquidation, dissolution or winding-up, or if we issue preferred shares with voting rights that dilute the voting power of the common stock, the rights of holders of the common stock or the market price of the common stock could be adversely affected.

The market price of our common stock could decline as a result of sales of a large number of shares of common stock or preferred stock or similar securities in the market or the perception that such sales could occur. 

Holders of our junior subordinated debentures have rights that are senior to those of our shareholders.

We have three statutory business trusts that were formed for the purpose of issuing mandatorily redeemable securities (the “capital securities”) for which we are obligated to third-party investors and investing the proceeds from the sale of the capital securities in our junior subordinated debentures (the “debentures”).  The debentures held by the trusts are their sole assets.  Our subordinated debentures of these unconsolidated statutory trusts totaled approximately $19.6 million at December 31, 2019 and 2018.

Distributions on the capital securities issued by the trusts are payable quarterly, at the variable interest rates specified in those certain securities.  The capital securities are subject to mandatory redemption, in whole or in part, upon repayment of the debentures.

Payments of the principal and interest on the trust preferred securities of the statutory trusts are conditionally guaranteed by us.  The junior subordinated debentures are senior to our shares of common stock.  As a result, we must make payments on the junior subordinated debentures before any dividends can be paid on our common stock and, in the event of our bankruptcy, dissolution or liquidation, the holders of the junior subordinated debentures must be satisfied before any distributions can be made on our common stock.  We have the right to defer distributions on the junior subordinated debentures (and the related trust preferred securities) for up to five (5) years, during which time no dividends may be paid on our common stock.  In 2019, our total interest payments on these junior subordinated debentures approximated $961,000.  Based on current rates, our quarterly interest payment obligation on our junior subordinated debentures is approximately $210,000.

The capital securities held by our three trust subsidiaries qualify as Tier 1 capital under FRB guidelines.  In accordance with these guidelines, trust preferred securities generally are limited to twenty-five percent (25%) of Tier 1 capital elements, net of goodwill.  The amount of trust preferred securities and certain other elements in excess of the limit can be included in Tier 2 capital.

Provisions of our amended and restated articles of incorporation could delay or prevent a takeover of us by a third party.

Our amended and restated articles of incorporation could delay, defer or prevent a third party from acquiring us, despite the possible benefit to our shareholders, or could otherwise adversely affect the price of our common stock.  For example, our amended and restated articles of incorporation contain advance notice requirements for nominations for election to our Board of Directors. We also have a staggered board of directors, which means that only one-third (1/3) of our Board of Directors can be replaced by shareholders at any annual meeting.

OTHER RISKS

Additional factors could have a negative effect on our financial performance and the value of our common stock.  These factors include, but are not limited to, general economic and financial market conditions, continuing consolidation in the financial services industry, new litigation or changes in existing litigation, regulatory actions and losses.

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Item 1B.  Unresolved Staff Comments

Not applicable.

Item 2.  Properties

Our principal executive office is located at 300 North Main Street, Moorefield, West Virginia, in a building owned by Summit Community.  Summit Community’s headquarters and branch locations occupy offices which are either owned or operated under lease arrangements.  At December 31, 2019, Summit Community operated 32 banking offices.  

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	Number of Offices
Office Location	Owned	Leased	Total
Summit Community Bank
Moorefield, West Virginia	1	—	1
Mathias, West Virginia	1	—	1
Franklin, West Virginia	1	—	1
Petersburg, West Virginia	1	—	1
Charleston, West Virginia	2	—	2
Rainelle, West Virginia	1	—	1
Rupert, West Virginia	1	—	1
Winchester, Virginia	1	1	2
Leesburg, Virginia	1	—	1
Harrisonburg, Virginia	2	—	2
Warrenton, Virginia	—	1	1
Martinsburg, West Virginia	1	—	1
Monterey, Virginia	1	—	1
Hot Springs, Virginia	1	—	1
Churchville, Virginia	—	1	1
Bluefield, West Virginia	2	—	2
Princeton, West Virginia	2	—	2
Oceana, West Virginia	1	—	1
Pineville, West Virginia	1	—	1
Bluefield, Virginia	1	—	1
Wytheville, Virginia	1	—	1
Max Meadows, Virginia	1	—	1
Hinton, West Virginia	1	—	1
Beckley, West Virginia	1	—	1
Christiansburg, Virginia	—	1	1
Mullens, West Virginia	1	—	1
MacArthur, West Virginia	1	—	1

We believe that the premises occupied by us and our subsidiary generally are well located and suitably equipped to serve as financial services facilities.  See Notes 9 and 10 of our consolidated financial statements beginning on page 76.

Item 3.  Legal Proceedings

Information required by this item is set forth under the caption "Legal Contingencies" in Note 17 of our consolidated financial statements beginning on page 85.

Item 4.  Mine Safety Disclosures

Not applicable.

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PART II.

Item 5.  Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Common Stock Dividend and Market Price Information:  Our stock trades on the NASDAQ Capital Market under the symbol “SMMF.”  

As of February 28, 2020, there were approximately 1,187 shareholders of record of Summit’s common stock.

Purchases of Summit Equity Securities:  We sponsor a qualified Employee Stock Ownership Plan (“ESOP”), which enables eligible employees to acquire shares of our common stock.  The cost of the ESOP is borne by us through annual contributions to an Employee Stock Ownership Trust in amounts determined by the Board of Directors. The Employee Stock Ownership Trust makes regular purchases of our common stock as excess funds within the plan are available.

Performance Graph: Set forth below is a line graph comparing the cumulative total return of Summit's common stock assuming reinvestment of dividends, with that of the NASDAQ Composite Index ("NASDAQ Composite"), and the SNL Small Cap U.S. Bank Index for the five year period ending December 31, 2019.

The cumulative total shareholder return assumes a $100 investment on December 31, 2014 in the common stock of Summit and each index and the cumulative return is measured as of each subsequent fiscal year-end. There is no assurance that Summit's common stock performance will continue in the future with the same or similar trends as depicted in the graph.

	For the Year Ended
Index	12/31/2014	12/31/2015	12/31/2016	12/31/2017	12/31/2018	12/31/2019
Summit Financial Group, Inc.	100.00	102.62	243.00	236.79	177.67	254.86
NASDAQ Composite	100.00	106.96	116.45	150.96	146.67	200.49
SNL Small Cap U.S. Bank	100.00	109.52	155.27	162.85	145.94	176.97

The  Stock Performance Graph and related information shall not be deemed “soliciting material” or to be “filed” with the Securities and Exchange Commission, nor shall such information be incorporated by reference into any future filing under the Securities Act of 1933 or Securities Exchange Act of 1934, each as amended, except to the extent that Summit specifically incorporates it by reference into such filing.

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Item 6.  Selected Financial Data

The following consolidated selected financial data is derived from our audited financial statements as of and for each of the five (5) years ended December 31, 2019.  The selected financial data should be read in conjunction with Management’s Discussion and Analysis of Financial Condition and Results of Operations and the Consolidated Financial Statements and related notes contained elsewhere in this report.

	For the Year Ended (unless otherwise noted)
Dollars in thousands, except per share amounts	2019			2018			2017			2016			2015
Summary of Operations
Interest income	$	107,071		$	95,409		$	84,527		$	64,091		$	58,883
Interest expense	29,987			25,612			18,380			15,084			12,867
Net interest income	77,084			69,797			66,147			49,007			46,016
Provision for loan losses	1,550			2,250			1,250			500			1,250
Net interest income after provision for loan losses	75,534			67,547			64,897			48,507			44,766
Noninterest income	19,203			17,422			14,427			11,600			11,861
Noninterest expense	55,154			49,873			57,745			34,802			33,632
Income before income taxes	39,583			35,096			21,579			25,305			22,995
Income tax expense	7,717			7,024			9,664			8,008			6,893
Net income applicable to common shares	$	31,866		$	28,072		$	11,915		$	17,297		$	16,102
Balance Sheet Data (at year end)
Assets	$	2,403,492		$	2,200,586		$	2,134,240		$	1,758,647		$	1,492,429
Debt securities available for sale	276,355			293,147			328,586			266,405			280,715
Loans, net	1,900,425			1,682,005			1,593,744			1,307,862			1,079,331
Deposits	1,913,237			1,634,826			1,600,601			1,295,519			1,066,709
Short-term borrowings	199,345			309,084			250,499			224,461			171,394
Long-term borrowings	717			735			45,751			46,670			75,581
Shareholders' equity	247,764			219,830			201,505			155,360			143,744
Credit Quality
Net loan charge-offs	$	1,523		$	1,768		$	359		$	298		$	945
Nonperforming assets	30,803			36,462			36,861			39,090			41,340
Allowance for loan losses	13,074			13,047			12,565			11,674			11,472
Per Share Data
Earnings per share
Basic earnings	$	2.55		$	2.27		$	1.00		$	1.62		$	1.56
Diluted earnings	2.53			2.26			1.00			1.61			1.50
Book value per common share (at year end)	19.97			17.85			16.30			14.47			13.48
Tangible book value per common share (at year end)	18.11			15.75			14.08			13.20			12.78
Cash dividends	$	0.59		$	0.53		$	0.44		$	0.40		$	0.32
Performance Ratios
Return on average equity	13.43		%	13.43		%	6.40		%	11.53		%	11.62		%
Return on average tangible equity	15.65		%	16.09		%	8.01		%	12.38		%	12.39		%
Return on average assets	1.40		%	1.32		%	0.59		%	1.08		%	1.10		%
Equity to assets	10.3		%	10.0		%	9.4		%	8.8		%	9.6		%
Tangible common equity to tangible assets	9.4		%	8.9		%	8.3		%	8.1		%	9.2		%
Dividend payout ratio	23.1		%	23.3		%	44.0		%	24.7		%	21.1		%

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Item 7.  Management's Discussion and Analysis of Financial Condition and Results of Operations

FORWARD LOOKING STATEMENTS

This annual report 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.  The Private Securities Litigation Act of 1995 indicates that the disclosure of forward-looking information is desirable for investors and encourages such disclosure by providing a safe harbor for forward-looking statements by us.  In order to comply with the terms of the safe harbor, we note that a variety of factors could cause our actual results and experience to differ materially from the anticipated results or other expectations expressed in those forward-looking statements.

Although we believe the expectations reflected in such forward looking statements are reasonable, actual results may differ materially.  Factors that might cause such a difference include changes in interest rates and interest rate relationships; demand for products and services; the degree of competition by traditional and non-traditional competitors; changes in banking laws and regulations; changes in tax laws; the impact of technological advances; the outcomes of contingencies; trends in customer behavior as well as their ability to repay loans; and changes in the national and local economy.

DESCRIPTION OF BUSINESS

We are a $2.40 billion community-based financial services company providing a full range of banking and other financial services to individuals and businesses through our our community bank, Summit Community Bank, Inc., which has a total of 36 banking offices located in West Virginia and Virginia.  We have a trust and wealth management division offering trust services and other non-bank financial products principally within our community bank's market area. Summit Financial Group, Inc. employs 383 full time equivalent employees.

OVERVIEW

Our primary source of income is net interest income from loans and deposits.  Business volumes tend to be influenced by the overall economic factors including market interest rates, business spending and consumer confidence, as well as competitive conditions within the marketplace.

Key Items in 2019

• Our earnings per diluted share increased from $2.26 in 2018 to $2.53 in 2019.

• Our return on average equity remained unchanged at 13.43% and return on average tangible equity decreased from 16.09% to 15.65%.

• 2019 net income was $31.87 million ($2.53 per diluted share) compared to $28.07 million ($2.26 per diluted share) in 2018.

• Net interest margin increased 9 basis points in 2019, principally due to a 20 basis point increase in yield on interest earning assets compared to a 16 basis point increase in our funding costs.

• Net revenues increased $9.1 million, or 10.4 percent during 2019 primarily as result of increased interest income related to loan growth and the Peoples Bankshares, Inc. ("PBI") acquisition.

• We achieved loan growth, excluding mortgage warehouse lines of credit, of 7.9 percent, or $131.4 million during 2019.

• Nonperforming assets declined to their lowest level since 2008, representing 1.28 percent of total assets at year end 2019 compared to 1.66 percent at the prior year end.

• During 2019, provisions for loan losses decreased by $700,000, which reflects improved overall credit quality of our loan portfolio.

• Cash dividends paid on our common stock in 2019 totaled $0.59 per share compared to $0.53 paid per share in 2018.

• On September 17, 2019, we entered into a Definitive Merger Agreement with West Union, West Virginia-based Cornerstone Financial Services, Inc. ("Cornerstone") and its subsidiary, Cornerstone Bank. The transaction closed on January 1, 2020. At consummation, Cornerstone had total assets of $195.0 million, loans of $39.8 million and deposits of $173.0 million.

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• On November 22, 2019, we entered into a definitive agreement under which Summit Community Bank, Inc., a subsidiary of Summit Financial Group, Inc., will acquire three MVB Bank locations in Berkeley County, West Virginia and one MVB Bank location in Jefferson County, West Virginia. The transaction is expected to close early second quarter, 2020. Summit will assume certain deposits and loans whose balances at September 30, 2019, were approximately $181 million and $46 million, respectively.

OUTLOOK

The year just concluded represents another significant milestone relative to Summit’s goal to be a consistent growth, high-performing community banking institution. Our solid lending activity and strong core operating performance of the past year offer significant evidence of our progress. In addition, our acquisition strategy continued to present us with significant opportunities for ongoing performance enhancement. Looking forward to 2020, while we could be challenged by a variety of potential economic uncertainties, we anticipate sustaining our recent positive trends with respect to:  revenue growth, loan portfolio growth, a relatively stable net interest margin, low overhead, and reductions in overall levels of problem assets.

CRITICAL ACCOUNTING POLICIES

Our consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America and follow general practices within the financial services industry.  Application of these principles requires us to make estimates, assumptions and judgments that affect the amounts reported in our financial statements and accompanying notes.  These estimates, assumptions and judgments are based on information available as of the date of the financial statements; accordingly, as this information changes, the financial statements could reflect different estimates, assumptions and judgments.  Certain policies inherently have a greater reliance on the use of estimates, assumptions and judgments and as such have a greater possibility of producing results that could be materially different than originally reported.

Our most significant accounting policies are presented in the notes to the accompanying consolidated financial statements.  These policies, along with the other disclosures presented in the financial statement notes and in this financial review, provide information on how significant assets and liabilities are valued in the financial statements and how those values are determined.

Based on the valuation techniques used and the sensitivity of financial statement amounts to the methods, assumptions and estimates underlying those amounts, we have identified the determination of the allowance for loan losses, the valuation of goodwill, fair value measurements and accounting for acquired loans to be the accounting areas that require the most subjective or complex judgments and as such could be most subject to revision as new information becomes available.

Allowance for Loan Losses:  The allowance for loan losses represents our estimate of probable credit losses inherent in the loan portfolio.  Determining the amount of the allowance for loan losses is considered a critical accounting estimate because it requires significant judgment and the use of estimates related to the amount and timing of expected future cash flows on impaired loans, estimated losses on pools of homogeneous loans based on historical loss experience and consideration of current economic trends and conditions, all of which may be susceptible to significant change.  The loan portfolio also represents the largest asset type on our consolidated balance sheet.  To the extent actual outcomes differ from our estimates, additional provisions for loan losses may be required that would negatively impact earnings in future periods.  Note 8 to the accompanying consolidated financial statements describes the methodology used to determine the allowance for loan losses and a discussion of the factors driving changes in the amount of the allowance for loan losses is included in the Asset Quality section of this financial review.

We cannot assure you that future goodwill impairment tests will not result in a charge to earnings. See Note 11 of the accompanying consolidated financial statements for further discussion of our intangible assets, which include goodwill.

Fair Value Measurements:  Fair value is based upon the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants, including, but not limited to, property held for sale, impaired loans and derivatives. Based on the observability of the inputs used in the valuation techniques, we classify our financial assets and liabilities measured and disclosed at fair value in accordance with a three-level hierarchy (e.g., Level 1, Level 2 and Level 3) . Fair value determination requires that we make a number of significant judgments. In determining the fair value of financial instruments, we use market prices of the same or similar instruments whenever such prices are available. We do not use prices involving distressed sellers in determining fair value. If observable market prices are unavailable or impracticable to obtain, then fair value is estimated using modeling techniques such as discounted cash flow analyses. These modeling techniques incorporate our assessments

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regarding assumptions that market participants would use in pricing the asset or the liability, including assumptions about the risks inherent in a particular valuation technique and the risk of nonperformance.

Fair value is used on a recurring basis for certain assets and liabilities in which fair value is the primary basis of accounting. Additionally, fair value is used on a non-recurring basis to evaluate assets or liabilities for impairment or for disclosure purposes.

Accounting for Acquired Loans: Loans acquired are initially recorded at their acquisition date fair values. The fair value of the acquired loans are based on the present value of the expected cash flows, including principal, interest and prepayments. Periodic principal and interest cash flows are adjusted for expected losses and prepayments, then discounted to determine the present value and summed to arrive at the estimated fair value. Fair value estimates involve assumptions and judgments as to credit risk, interest rate risk, prepayment risk, liquidity risk, default rates, loss severity, payment speeds, collateral values and discount rate.

Acquired loans are divided into loans with evidence of credit quality deterioration (acquired impaired) and loans that do not meet this criteria (acquired performing). Acquired impaired loans have experienced a deterioration of credit quality from origination to acquisition for which it is probable that we will be unable to collect all contractually required payments receivable, including both principal and interest. In the assessment of credit quality, numerous assumptions, interpretations and judgments must be made, based on internal and third-party credit quality information and ultimately the determination as to the probability that all contractual cash flows will not be able to be collected. This is a point in time assessment and inherently subjective due to the nature of the available information and judgment involved.

Subsequent to the acquisition date, we continue to estimate the amount and timing of cash flows expected to be collected on acquired impaired loans. Increases in expected cash flows will generally result in a recovery of any previously recorded allowance for loan losses, to the extent applicable, and/or a reclassification from the nonaccretable difference to accretable yield, which will be recognized prospectively. The present value of any decreases in expected cash flows after the acquisition date will generally result in an impairment charge recorded as a provision for loan losses, resulting in an increase to the allowance for loan losses.

For acquired performing loans, the difference between the acquisition date fair value and the contractual amounts due at the acquisition date represents the fair value adjustment. Fair value adjustments may be discounts (or premiums) to a loan’s cost basis and are accreted (or amortized) to interest income over the loan’s remaining life using the level yield method. Subsequent to the acquisition date, the methods utilized to estimate the required allowance for loan losses for these loans is similar to originated loans.

See Note 3 and Note 7 of the accompanying consolidated financial statements for additional information regarding our acquired loans.

RESULTS OF OPERATIONS

Earnings Summary

Net income increased 13.5% during 2019 to $31.9 million, compared to $28.1 million in 2018, which was 135.6% more than 2017's $11.9 million. Net income was $2.53, $2.26 and $1.00 per diluted share for 2019, 2018 and 2017, respectively, representing a 11.9% increase in 2019 and 126.0% increase in 2018. Return on average equity was 13.43% in both 2019 and 2018 compared to 6.40% in 2017. Return on average assets for the year ended December 31, 2019 was 1.40% compared to 1.32% in 2018 and 0.59% in 2017.

2019 net income was positively impacted by higher net interest income of $7.3 million (or $0.58 per diluted share), $1.3 million (or $0.10 per diluted share) higher realized securities gains and the $1.9 million pre-tax (or $0.15 per diluted share) gain recognized on the sale of our former insurance subsidiary, Summit Insurance Services, LLC. Lower insurance commission revenue of $2.4 million (or $0.19 per diluted share) and higher writedowns of OREO properties of $1.3 million (or $0.10 per diluted share) partially offset these positive impacts.

2018 net income was positively impacted by higher net interest income of $3.7 million (or $0.29 per diluted share), $790,000 growth in trust and wealth management fees ($0.06 per diluted share), $522,000 increased deposit account-related fees ($0.08 per diluted share) and $2.6 million ($0.25 per diluted share) in lower income tax expense as result of the Tax Cuts and Jobs Act's (“TCJA”) lower income tax rates. Excluding 2017's litigation charge, higher total noninterest expense of $2.0 million ($0.16 per diluted share) partially offset these positive impacts.

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Included in 2017's net income were a $9.9 million pre-tax ($6.2 million after-tax or $0.52 per diluted share) litigation settlement charge, $3.5 million ($0.29 per diluted share) preliminary income tax charge due to enactment of the TCJA, and $1.6 million ($0.08 per diluted share) of merger related expenses. A summary of the significant factors influencing our results of operations and related ratios is included in the following discussion.

Net Interest Income

The major component of our net earnings is net interest income, which is the excess of interest earned on earning assets over the interest expense incurred on interest bearing sources of funds.  Net interest income is affected by changes in volume, resulting from growth and alterations of the balance sheet's composition, fluctuations in interest rates and maturities of sources and uses of funds.  We seek to maximize net interest income through management of our balance sheet components.  This is accomplished by determining the optimal product mix with respect to yields on assets and costs of funds in light of projected economic conditions, while maintaining portfolio risk at an acceptable level.

Net interest income on a fully tax equivalent basis, average balance sheet amounts and corresponding average yields on interest earning assets and costs of interest bearing liabilities for the years 2015 through 2019 are presented in Table I.  Table II presents, for the periods indicated, the changes in interest income and expense attributable to (a) changes in volume (changes in volume multiplied by prior period rate) and (b) changes in rate (change in rate multiplied by prior period volume).  Changes in interest income and expense attributable to both rate and volume have been allocated between the factors in proportion to the relationship of the absolute dollar amounts of the change in each.

Net interest income on a fully tax equivalent basis totaled $78.0 million, $71.1 million and $68.6 million for the years ended December 31, 2019, 2018 and 2017, respectively, representing an increase of 9.7% in 2019 and 3.7% in 2018.  During 2019, 2018 and 2017, the volumes of both interest earning assets and interest bearing liabilities increased.

During 2019, our earnings on interest earning assets increased $11.3 million due to both higher volumes and higher yields, while the cost of interest bearing liabilities increased $4.4 million due to higher cost of funds.

During 2018, our earnings on interest earning assets increased $9.7 million due to both higher volumes and higher yields, while the cost of interest bearing liabilities increased $7.2 million due to higher cost of funds.

During 2017, our earnings on interest earning assets increased $21.3 million due to both higher volumes and higher yields, while the cost of interest bearing liabilities increased $3.3 million due to higher volumes of interest bearing deposits.

Total average earning assets increased 7.3% to $2.13 billion for 2019 from $1.99 billion in 2018.  Total average interest bearing liabilities increased 5.6% to $1.78 billion at December 31, 2019, compared to $1.69 billion at December 31, 2018. 

Our net interest margin was 3.66% for 2019 compared to 3.57% and 3.67% for 2018 and 2017, respectively.  Our net interest margin increased 9 basis points during 2019 as the yields on interest earning assets increased 20 basis points while the cost of funds increased 16 basis points. Our net interest margin decreased 10 basis points during 2018 as the cost of funds increased 37 basis points while yields on interest earning assets increased 21 basis points. The 2018 increase in yields on interest earning assets was negatively impacted by lower taxable equivalent adjustments to interest earned on tax-exempt securities and loans as a result of enactment of the TCJA in late 2017, which lowered our statutory corporate Federal income tax rate effective January 1, 2018, from 35% to 21%.

Assuming no significant unanticipated changes in market interest rates, we expect growth in our net interest income to continue over the near term primarily due to continuing expected growth in earning assets, primarily loans. We continue to monitor the net interest margin through net interest income simulation to minimize the potential for any significant negative impact.  

See the “Market Risk Management” section for discussion of the impact changes in market interest rates could have on us.  Further analysis of our yields on interest earning assets and interest bearing liabilities are presented in Tables I and II below.

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Table I - Average Balance Sheet and Net Interest Income Analysis
Interest Earnings & Expenses and Average Yields/Rates
Dollars in thousands	2019			2018			2017			2016			2015
ASSETS
Interest earning assets
Loans, net of unearned interest (1)
Taxable	$	1,782,477		$	1,626,725		$	1,480,601		$	1,177,445		$	1,049,172
Tax-exempt (2)	15,315			15,776			14,899			14,628			13,706
Securities
Taxable	205,340			170,912			200,596			202,795			209,316
Tax-exempt (2)	90,823			136,913			129,342			79,571			77,280
Interest bearing deposits with other banks	39,408			38,148			43,400			19,211			8,878
	2,133,363			1,988,474			1,868,838			1,493,650			1,358,352
Noninterest earning assets
Cash and due from banks	12,939			9,517			8,492			3,968			3,839
Premises and equipment	41,778			36,025			31,750			21,858			20,707
Other assets	107,456			107,856			109,456			90,957			94,996
Allowance for loan losses	(13,225		)	(12,830		)	(12,196		)	(10,836		)	(11,307		)
Total assets	$	2,282,311		$	2,129,042		$	2,006,340		$	1,599,597		$	1,466,587
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Interest bearing liabilities
Interest bearing demand deposits	$	586,938		$	471,725		$	358,225		$	220,708		$	208,160
Savings deposits	317,569			320,184			363,949			306,312			255,186
Time deposits	660,910			621,659			609,156			491,652			481,732
Short-term borrowings	194,450			228,142			205,743			190,876			151,102
Long-term borrowings and subordinated    debentures	20,315			44,132			65,629			92,343			99,805
	1,780,182			1,685,842			1,602,702			1,301,891			1,195,985
Noninterest bearing liabilities
Demand deposits	244,559			218,541			200,707			128,894			116,995
Other liabilities	20,341			15,574			16,669			18,795			15,024
Total liabilities	2,045,082			1,919,957			1,820,078			1,449,580			1,328,004
Shareholders' equity - preferred	—			—			—			—			1,786
Shareholders' equity - common	237,229			209,085			186,262			150,017			136,797
Total shareholders' equity	237,229			209,085			186,262			150,017			138,583
Total liabilities and shareholders' equity	$	2,282,311		$	2,129,042		$	2,006,340		$	1,599,597		$	1,466,587
Net Interest Earnings
Net Interest Margin

(1) For purposes of this table, nonaccrual loans are included in average loan balances. Included in interest and fees on loans are loan fees of $960,000, $839,000 and $998,000 for the years ended December 31, 2019, 2018 and 2017, respectively.

(2) For purposes of this table, interest income on tax-exempt securities and loans has been adjusted assuming a Federal tax rate of 21% for 2019 and 2018 , 35% for 2017 and 34% for all other years presented. The taxable equivalent adjustment results in an increase in interest income of $922,000, $1,280,000, $2,413,000, $1,589,000 and $1,542,000 for the years ended December 31, 2019, 2018, 2017, 2016 and 2015, respectively.

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			Interest Earnings/Expense										Average Yield/Rate
Dollars in thousands	2019		2018		2017		2016		2015		2019		2018		2017		2016		2015
ASSETS
Interest earning assets
Loans, net of unearned interest (1)
Taxable	$	96,499	$	84,716	$	74,365	$	56,439	$	51,554	5.41	%	5.21	%	5.02	%	4.79	%	4.91	%
Tax-exempt (2)	780		718		835		820		779		5.09	%	4.55	%	5.60	%	5.61	%	5.68	%
Securities
Taxable	6,511		5,341		5,071		4,395		4,328		3.17	%	3.13	%	2.53	%	2.17	%	2.07	%
Tax-exempt (2)	3,608		5,375		6,060		3,853		3,756		3.97	%	3.93	%	4.69	%	4.84	%	4.86	%
Interest bearing deposits with other banks	595		539		609		173		8		1.51	%	1.41	%	1.40	%	0.90	%	0.09	%
Total assets	107,993		96,689		86,940		65,680		60,425		5.06	%	4.86	%	4.65	%	4.40	%	4.45	%
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Interest bearing liabilities
Interest bearing demand deposits	$	6,394	$	4,205	$	1,169	$	376	$	251	1.09	%	0.89	%	0.33	%	0.17	%	0.12	%
Savings deposits	3,969		3,233		2,563		2,296		1,781		1.25	%	1.01	%	0.70	%	0.75	%	0.70	%
Time deposits	13,334		10,237		7,478		6,292		6,304		2.02	%	1.65	%	1.23	%	1.28	%	1.31	%
Short-term borrowings	5,303		5,993		4,473		2,288		525		2.73	%	2.63	%	2.17	%	1.20	%	0.35	%
Long-term borrowings subordinated   debentures	987		1,944		2,697		3,832		4,007		4.86	%	4.40	%	4.11	%	4.15	%	4.01	%
Total interest bearing liabilities	29,987		25,612		18,380		15,084		12,868		1.68	%	1.52	%	1.15	%	1.16	%	1.08	%
Net Interest Earnings	$	78,006	$	71,077	$	68,560	$	50,596	$	47,557
Net Interest Margin											3.66	%	3.57	%	3.67	%	3.39	%	3.50	%

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Table II - Changes in Interest Margin Attributable to Rate and Volume
	2019 Versus 2018									2018 Versus 2017
	Increase (Decrease)									Increase (Decrease)
	Due to Change in:									Due to Change in:
Dollars in thousands	Volume			Rate			Net			Volume			Rate			Net
Interest earned on
Loans
Taxable	$	8,338		$	3,445		$	11,783		$	7,536		$	2,815		$	10,351
Tax-exempt	(21		)	83			62			47			(164		)	(117		)
Securities
Taxable	1,091			79			1,170			(818		)	1,088			270
Tax-exempt	(1,830		)	63			(1,767		)	340			(1,025		)	(685		)
Interest bearing deposits with other banks	18			38			56			(74		)	4			(70		)
Total interest earned on interest earning assets	7,596			3,708			11,304			7,031			2,718			9,749
Interest paid on
Interest bearing demand deposits	1,146			1,043			2,189			469			2,567			3,036
Savings deposits	(26		)	762			736			(337		)	1,007			670
Time deposits	678			2,419			3,097			156			2,603			2,759
Short-term borrowings	(912		)	222			(690		)	522			998			1,520
Long-term borrowings and subordinated debentures	(1,140		)	183			(957		)	(935		)	182			(753		)
Total interest paid on interest bearing liabilities	(254		)	4,629			4,375			(125		)	7,357			7,232
Net interest income	$	7,850		$	(921	)	$	6,929		$	7,156		$	(4,639	)	$	2,517

Noninterest Income

Noninterest income totaled 0.84%, 0.82% and 0.72%, of average assets in 2019, 2018 and 2017, respectively.   Noninterestincome totaled $19.2 million in 2019 compared to $17.4 million in 2018 and $14.4 million in 2017. The 2019 increase is primarily due to gains realized on securities and the sale of Summit Insurance Services while the 2018 increase is principally due to higher trust and wealth management fees and service fees related to deposit accounts as a result of the FCB acquisition in Q2 2017. Further detail regarding noninterest income is reflected in the following table.

Table III - Noninterest Income
Dollars in thousands	2019		2018		2017
Insurance commissions	$	1,911	$	4,320	$	4,005
Trust and wealth management fees	2,564		2,653		1,863
Service charges on deposit accounts	5,094		4,631		4,109
Bank card revenue	3,536		3,152		2,697
Realized securities gains (losses), net	1,938		622		(14		)
Gain on sale of Summit Insurance Services, LLC	1,906		—		—
Bank owned life insurance income	1,044		1,022		1,017
Other	1,210		1,022		750
Total	$	19,203	$	17,422	$	14,427

Noninterest Expense

Noninterest expense totaled $55.2 million, $49.9 million and $57.7 million, or 2.4%, 2.3% and 2.9% of average assets for each of the years ended December 31, 2019, 2018 and 2017.  Total noninterest expense increased $5.3 million in 2019 compared to 2018 and decreased $7.9 million in 2018 compared to 2017.  Our most notable changes in noninterest expense during 2019 were increased salaries, commissions and employee benefits, decreased FDIC premiums, higher foreclosed properties expenses and increases in other expenses.  Table IV below presents a summary of our noninterest expenses for the past 3 years and the related year-over-year changes in each such expense.

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Table IV - Noninterest Expense
			Change							Change
Dollars in thousands	2019		$			%		2018		$			%		2017
Salaries, commissions and employee benefits	$	29,066	$	1,588		5.8	%	$	27,478	$	2,403		9.6	%	$	25,075
Net occupancy expense	3,417		53			1.6	%	3,364		353			11.7	%	3,011
Equipment expense	4,972		561			12.7	%	4,411		457			11.6	%	3,954
Professional fees	1,678		71			4.4	%	1,607		240			17.6	%	1,367
Advertising and public relations	698		44			6.7	%	654		76			13.1	%	578
Amortization of intangibles	1,701		30			1.8	%	1,671		261			18.5	%	1,410
FDIC premiums	88		(742		)	(89.4	)%	830		(235		)	(22.1	)%	1,065
Bank card expense	1,820		345			23.4	%	1,475		43			3.0	%	1,432
Foreclosed properties expense, net of gains/losses	2,498		1,148			85.0	%	1,350		11			0.8	%	1,339
Litigation settlement	—		—			n/a		—		(9,900		)	n/a		9,900
Merger-related expense	617		473			328.5	%	144		(1,445		)	(90.9	)%	1,589
Other	8,599		1,710			24.8	%	6,889		(136		)	(1.9	)%	7,025
Total	$	55,154	$	5,281		10.6	%	$	49,873	$	(7,872	)	(13.6	)%	$	57,745

Salaries, commissions and employee benefits: These expenses are 5.8% higher in 2019 compared to 2018 primarily due to general merit increases and the increased average number of annual full-time equivalent employees related to the PBI acquisition in Q1 2019. These expenses are 9.6% higher in 2018 compared to 2017 primarily due to general merit increases and an increase in our average annual full-time equivalent employees, primarily those in conjunction with the FCB acquisition in Q2 2017.

Equipment: The 2019 and 2018 increases in equipment expense are primarily increased depreciation and amortization related to various technological upgrades, both hardware and software, made during the past three years and also the PBI and FCB acquisitions.

Amortization of intangibles: Amortization of intangibles increased during 2019 and 2018 as a result of the additional amortization of the core deposit intangibles associated with the PBI and FCB acquisitions.

FDIC premiums: The decrease in FDIC premiums for 2019 is due to the FDIC's Small Bank Assessment Credits resulting from the reserve ratio meeting the required 1.38 percent threshold. FDIC premiums decreased 22% during 2018 primarily due to improvement in earnings and performance.

Merger-related expense: These expenses are comprised of data processing conversion costs, employee severance costs, write-downs of equipment and legal fees related to the Cornerstone, PBI and FCB acquisitions. Additional such costs are expected to approximate $1.0 million in 2020 relative to the Cornerstone and MVB Bank branches acquisitions.

Foreclosed properties expense, net of gains/losses: Foreclosed properties expense, net of gains/losses increased for 2019 primarily as a result of higher writedowns of theses properties to their estimated fair values.

Litigation settlement: During 2017, we recorded a $9.9 million pre-tax charge as full resolution of the ResCap Litigation which had been pending since 2014. See the Legal Contingencies section of Note 17 Commitments and Contingencies in the accompanying notes to consolidated financial statements.

Other: The increase in other expenses for 2019 is largely due to a $1.0 million increase in deferred director compensation plan expenses. Under the plan, the directors optionally defer their director fees into a "phantom" investment plan whereby the company recognizes expense or benefit relative to the phantom returns or losses of such investments. Also increasing was ATM expense, up $213,000 due to increased usage by customers.

Income Tax Expense

Income tax expense for the years ended December 31, 2019, 2018 and 2017 totaled $7.7 million, $7.0 million and $9.7 million, respectively. Our effective tax rate (income tax expense as a percentage of income before taxes) for 2019, 2018 and 2017 were 19.5%, 20.0% and 44.8%, respectively. The 2019 and 2018 decreased effective tax rates are due to the lower corporate income tax rates enacted late 2017 in conjunction with the TCJA, which permanently lowered the federal corporate income tax rate to 21% from the prior maximum rate of 35%, effective January 1, 2018. As a result of the reduction of the federal corporate

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income tax rate, U.S. generally accepted accounting principles required companies to remeasure their deferred tax assets and deferred tax liabilities, including those accounted for in accumulated other comprehensive income, as of the date of TCJA’s enactment and record the effects as income tax expense in the reporting period of enactment. We remeasured our deferred tax assets and deferred tax liabilities as of December 22, 2017, at the new federal corporate income tax rate of 21%, and recorded additional income tax expense of $3.5 million to reduce our net deferred tax assets, thus causing a higher effective tax rate for 2017. Refer to Note 15 of the accompanying consolidated financial statements for further information and additional discussion of the significant components influencing our effective income tax rates.

CHANGES IN FINANCIAL POSITION

Our average assets increased during 2019 to $2.28 billion, an increase of 7.2% above 2018's average of $2.13 billion, and our year end December 31, 2019 assets were $202.9 million more than December 31, 2018.  Average assets increased 6.1% in 2018, from $2.01 billion in 2017.  Significant changes in the components of our balance sheet in 2019 and 2018 are discussed below.

Table V - Summary of Significant Changes in Financial Position 2019 versus 2018
	Balance December 31,		Impact of PBI Acquisition		Other Changes			Balance December 31,
Dollars in thousands	2018							2019
Assets
Cash and cash equivalents	$	59,540	$	33,329	$	(30,981	)	$	61,888
Debt securities available for sale	293,147		55,113		(71,905		)	276,355
Other investments	16,635		72		(3,735		)	12,972
Loans, net	1,682,005		41,398		177,022			1,900,425
Property held for sale	21,432		—		(2,156		)	19,276
Premises and equipment	37,553		815		5,800			44,168
Goodwill and other intangibles	25,842		3,983		(6,803		)	23,022
Cash surrender value of life insurance policies	42,386		—		1,217			43,603
Other assets	22,046		939		(1,202		)	21,783
Total assets	$	2,200,586	$	135,649	$	67,257		$	2,403,492
Liabilities
Deposits	$	1,634,826	$	112,379	$	166,032		$	1,913,237
Short-term borrowings	309,084		—		(109,739		)	199,345
Long-term borrowings	735		—		(18		)	717
Subordinated debentures owed to unconsolidated subsidiary trusts	19,589		—		—			19,589
Other liabilities	16,522		1,533		4,785			22,840
Shareholders' Equity	219,830		21,737		6,197			247,764
Total liabilities and shareholders' equity	$	2,200,586	$	135,649	$	67,257		$	2,403,492

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Table VI - Summary of Significant Changes in Financial Position 2018 versus 2017
	Balance December 31,		Other Changes			Balance December 31,
Dollars in thousands	2017					2018
Assets
Cash and cash equivalents	$	52,631	$	6,909		$	59,540
Debt securities available for sale	328,586		(35,439		)	293,147
Other investments	15,071		1,564			16,635
Loans, net	1,593,744		88,261			1,682,005
Property held for sale	21,470		(38		)	21,432
Premises and equipment	34,209		3,344			37,553
Goodwill and other intangibles	27,513		(1,671		)	25,842
Cash surrender value of life insurance policies	41,358		1,028			42,386
Other assets	19,658		2,388			22,046
Total assets	$	2,134,240	$	66,346		$	2,200,586
Liabilities
Deposits	$	1,600,601	$	34,225		$	1,634,826
Short-term borrowings	250,499		58,585			309,084
Long-term borrowings	45,751		(45,016		)	735
Subordinated debentures owed to unconsolidated subsidiary trusts	19,589		—			19,589
Other liabilities	16,295		227			16,522
Shareholders' Equity	201,505		18,325			219,830
Total liabilities and shareholders' equity	$	2,134,240	$	66,346		$	2,200,586

Cash and Cash Equivalents

The 2019 net reduction of $31.0 million is primarily attributable to repayments of short-term Federal Home Loan Bank ("FHLB") advances and the cash consideration of $12.7 million paid in conjunction with the PBI acquisition.

Loan Portfolio

Table VII depicts gross loan balances by type and the respective percentage of each to total loans at December 31, as follows:

Table VII - Loans by Type
	2019				2018				2017				2016				2015
Dollars in thousands	Amount		Percent of Total		Amount		Percent of Total		Amount		Percent of Total		Amount		Percent of Total		Amount		Percent of Total
Commercial	$	207,392	10.8	%	$	194,527	11.5	%	$	190,270	11.8	%	$	119,256	8.9	%	$	97,324	8.6	%
Commercial real estate	907,887		47.4	%	833,392		49.1	%	737,961		45.8	%	586,014		49.6	%	541,388		46.0	%
Construction and development	122,455		6.4	%	94,155		5.5	%	101,022		6.3	%	89,069		6.9	%	75,648		9.4	%
Residential mortgage	502,764		26.2	%	491,441		28.9	%	500,720		31.1	%	406,293		31.7	%	346,380		33.0	%
Mortgage warehouse lines	126,235		6.6	%	39,140		2.3	%	30,757		1.9	%	85,963		—	%	—		—	%
Consumer	36,651		1.9	%	32,569		1.9	%	36,302		2.3	%	25,524		1.8	%	19,297		1.9	%
Other	14,121		0.7	%	12,903		0.8	%	13,245		0.8	%	9,499		1.1	%	11,683		1.1	%
Total loans	$	1,917,505	100.0	%	$	1,698,127	100.0	%	$	1,610,277	100.0	%	$	1,321,618	100.0	%	$	1,091,720	100.0	%

Total net loans averaged $1.8 billion in 2019, which represented 79% of total average assets compared to $1.6 billion in 2018, or 77% of total average assets. A continued improving economic environment in our market area contributed to 7.7% organic loan growth, excluding mortgage warehouse lines, which increased $89.9 million in 2019, primarily in the commercial real estate and construction and development portfolios, following 2018's growth of 5.1% and 2017's growth of 9.6%.  Mortgage

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warehouse lines of credit grew $87.1 million in 2019 as we expanded our existing line participations and established several new participations in light of strong mortgage refinance and home purchase activity nationally. Refer to Note 7 of the accompanying consolidated financial statements for our loan maturities and a discussion of our adjustable rate loans as of December 31, 2019.

In the normal course of business, we make various commitments and incur certain contingent liabilities, which are disclosed in Note 17 of the accompanying consolidated financial statements but not reflected in the accompanying consolidated financial statements.  There have been no significant changes in these types of commitments and contingent liabilities and we do not anticipate any material losses as a result of these commitments.

Securities

Securities comprised approximately 11.5% of total assets at December 31, 2019 compared to 13.3% at December 31, 2018.  Average securities approximated $296.2 million for 2019 or 3.8% less than 2018's average of $307.8 million. The 2019 net decrease of $71.9 million in securities available for sale is principally a result of sales of the acquired PBI securities portfolio and the sales of a portion of our tax-exempt municipals securities, whose proceeds were used to pay down short-term FHLB advances and fund loan growth. In 2017, we obtained $100.7 million of available for sale securities in the FCB acquisition; the portfolio was restructured by selling $94 million of those securities and only $54 million of the proceeds were reinvested. Refer to Note 5 of the accompanying consolidated financial statements for details of amortized cost, the estimated fair values, unrealized gains and losses as well as the security classifications by type.

The following table presents the fair value of our securities portfolio by type at December 31, 2019, 2018 and 2017.

Table VIII - Fair Value of Securities	December 31
Dollars in thousands	2019		2018		2017
Available for Sale
Taxable debt securities
U.S. Government and agencies and corporations	$	20,864	$	26,140	$	31,613
Residential mortgage-backed securities:
Government-sponsored agencies	70,975		80,309		121,321
Nongovernment-sponsored entities	10,229		614		2,077
State and political subdivisions	49,973		19,243		17,677
Corporate debt securities	18,200		14,512		16,245
Asset-backed securities	33,014		25,175		—
Total taxable debt securities	203,255		165,993		188,933
Tax-exempt debt securities
State and political subdivisions	73,100		127,154		139,653
Total tax-exempt debt securities	73,100		127,154		139,653
Total available for sale securities	$	276,355	$	293,147	$	328,586

All of our securities are classified as available for sale to provide us with flexibility to better manage our balance sheet structure and react to asset/liability management issues as they arise.  Anytime that we carry a security with an unrealized loss that has been determined to be “other-than-temporary”, we must recognize that loss in income in the period of such determination. 

At December 31, 2019, we did not own securities of any one issuer that were not issued by the U.S. Treasury or a U.S. Government agency that exceeded ten percent of shareholders’ equity.  The maturity distribution of the securities portfolio at December 31, 2019, together with the weighted average yields for each range of maturity, is summarized in Table VI.  The stated average yields are stated on a tax equivalent basis.

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Table IX - Securities Maturity Analysis
					After one				After five
	Within				but within				but within				After
	one year				five years				ten years				ten years
(At amortized cost, dollars in thousands)	Amount		Yield		Amount		Yield		Amount		Yield		Amount		Yield
U. S. Government agencies and corporations	$	2,229	5.9	%	$	3,060	3.2	%	$	11,396	2.7	%	$	4,351	3.2	%
Residential mortgage backed securities:
Government sponsored agencies	18,908		3.0	%	42,699		3.1	%	5,418		2.8	%	3,353		2.9	%
Nongovernment sponsored entities	2,370		3.2	%	6,771		3.1	%	1,040		3.0	%	72		—	%
State and political subdivisions	135		3.4	%	2,995		3.8	%	26,327		2.9	%	88,997		3.4	%
Corporate debt securities	—		—		2,500		2.7	%	9,517		4.1	%	6,251		5.4	%
Asset-backed securities	6,050		2.5	%	21,035		2.4	%	6,741		2.4	%	—		—	%
Total	$	29,692	3.1	%	$	79,060	3.0	%	$	60,439	3.0	%	$	103,024	3.5	%

Deposits

Total deposits at December 31, 2019 increased $278.4 million or 17.0% compared to December 31, 2018. Total deposits at December 31, 2018 increased $34.2 million or 2.1% compared to December 31, 2017.  Deposits acquired in conjunction with the purchases of PBI in 2019 and FCB in 2017 totaled $102.9 million and $350.0 million, respectively. We have strengthened our focus on growing core transaction accounts. Excluding acquired deposits, core transaction accounts grew $100.1 million or 13.4% during 2019 while our internet-only high yielding savings product increased $116.2 million and brokered CDs decreased $69.9 million due to maturities and calls.

Table X - Deposits
Dollars in thousands	2019		2018		2017		2016		2015
Noninterest bearing demand	$	260,553	$	222,120	$	217,493	$	149,737	$	119,010
Interest bearing demand	630,351		523,257		410,606		262,591		215,721
Savings	418,096		284,173		358,168		337,348		266,825
Time deposits	604,237		605,276		614,334		545,843		465,153
Total deposits	$	1,913,237	$	1,634,826	$	1,600,601	$	1,295,519	$	1,066,709

See Table I for average deposit balance and rate information by deposit type for the past five years and Note 12 of the accompanying consolidated financial statements for a maturity distribution of time deposits as of December 31, 2019.

Borrowings

Lines of Credit:  We have a remaining available line of credit from the Federal Home Loan Bank of Pittsburgh (“FHLB”) totaling $609.3 million at December 31, 2019.  We use this line primarily to fund loans to customers.  Funds acquired through this program are reflected on the consolidated balance sheet in short-term borrowings or long-term borrowings, depending on the repayment terms of the debt agreement.  We also had $149.3 million available on a short term line of credit with the Federal Reserve Bank at December 31, 2019, which is primarily secured by consumer loans, construction loans and commercial and industrial loans and a $6 million available line of credit with a correspondent bank.

Short-term Borrowings: Total short-term borrowings consisting primarily of advances from the FHLB having original maturities of 30 days or less decreased $109.7 million from $309.1 million at December 31, 2018 to $199.3 million at December 31, 2019.  See Note 13 of the accompanying consolidated financial statements for additional disclosures regarding our short-term borrowings.

Long-term Borrowings:  Long-term borrowings historically have been used to fund our loan growth, however, as a result of prolonged low short-term interest rates following the economic downturn of 2008, long-term borrowings have been reduced significantly as we have replaced maturing long-term borrowings with short-term funding.  Total long-term borrowings of $717,000 and $735,000 at December 31, 2019 and 2018 consisted of a long-term FHLB advance. Refer to Note 13 of the accompanying consolidated financial statements for additional information regarding our long-term borrowings.

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Shareholders' equity

Changes in shareholders' equity are a result of net income, other comprehensive income and dividends.

ASSET QUALITY

For purposes of this discussion, we define nonperforming assets to include foreclosed properties, other repossessed assets and nonperforming loans, which is comprised of loans 90 days or more past due and still accruing interest and nonaccrual loans. Performing troubled debt restructurings ("TDRs") are excluded from nonperforming loans.

Table XI presents a summary of nonperforming assets at December 31, as follows:

Table XI - Nonperforming Assets
Dollars in thousands	2019			2018			2017			2016			2015
Accruing loans past due 90 days or more
Commercial	$	—		$	—		$	—		$	—		$	—
Commercial real estate	—			—			237			—			—
Residential construction & development	—			—			—			—			—
Residential real estate	—			—			—			—			—
Consumer	42			36			37			—			9
Other	—			—			—			—			—
Total accruing loans 90+ days past due	42			36			274			—			9
Nonaccrual loans
Commercial	764			935			696			298			853
Commercial real estate	5,800			3,238			2,927			4,845			5,955
Commercial construction & development	—			—			—			—			—
Residential construction & development	326			3,198			3,569			4,465			5,623
Residential real estate	4,404			7,506			7,656			4,815			3,245
Consumer	74			112			201			151			83
Other	100			—			—			—			—
Total nonaccrual loans	11,468			14,989			15,049			14,574			15,759
Foreclosed properties
Commercial	—			—			—			—			—
Commercial real estate	1,930			1,762			1,789			1,749			1,300
Commercial construction & development	4,601			6,479			7,392			8,610			8,717
Residential construction & development	11,169			11,543			11,182			13,265			14,069
Residential real estate	1,576			1,648			1,107			880			1,481
Total foreclosed properties	19,276			21,432			21,470			24,504			25,567
Repossessed assets	17			5			68			12			5
Total nonperforming assets	$	30,803		$	36,462		$	36,861		$	39,090		$	41,340
Total nonperforming loans as a percentage of total loans	0.60		%	0.89		%	0.95		%	1.10		%	1.45		%
Total nonperforming assets as a percentage of total assets	1.28		%	1.66		%	1.73		%	2.22		%	2.77		%
Allowance for loan losses as a percentage of nonperforming loans	113.58		%	86.84		%	82.00		%	80.10		%	72.75		%
Allowance for loan losses as a percentage of period end loans	0.68		%	0.77		%	0.78		%	0.88		%	1.05		%

Refer to Note 7 for information regarding our past due loans, impaired loans, nonaccrual loans and troubled debt restructurings.

We monitor our concentrations in higher-risk lending areas in accordance with the Interagency Guidance for Concentrations in Commercial Real Estate Lending issued in 2006. This guidance establishes concentration guidelines of 100% of Tier 1 Capital plus the allowance for loan and lease loss for lending in construction, land development and other land loans. It further establishes a guideline of 300% of Tier 1 Capital plus the allowance for loan and lease loss for lending in construction, land development and other land loans plus loans secured by non-owner occupied non-farm non-residential properties. As of December 31, 2019, Summit Community Bank was within the recommended limits of 100% and 300%, respectively.

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We maintain the allowance for loan losses at a level considered adequate to provide for estimated credit losses inherent in the loan portfolio.  The allowance is comprised of three distinct reserve components:  (1) specific reserves related to loans individually evaluated, (2) quantitative reserves related to loans collectively evaluated and (3) qualitative reserves related to loans collectively evaluated.  A summary of the methodology we employ on a quarterly basis with respect to each of these components in order to evaluate the overall adequacy of our allowance for loan losses is provided in Note 8 of the accompanying financial statements.

Relationship between Allowance for Loan Losses, Net Charge-offs and Nonperforming Loans

In analyzing the relationship among the allowance for loan losses, net loan charge-offs and nonperforming loans, it is helpful to understand the process of how loans are treated as the probability of collection changes over time. Allowances are established at origination through the quantitative and qualitative assessment process discussed above based upon credit quality.

Charge-offs, if necessary, are typically recognized in a period after the allowances were established. If the previously established allowance exceeds that needed to satisfactorily resolve the problem credit, a reduction in the overall level of the allowance could be recognized. In summary, if loan quality deteriorates, the typical credit sequence consists of periods of expense recognition, followed by periods of charge-offs.

Consumer loans are generally charged to the allowance for loan losses upon reaching specified stages of delinquency, in accordance with the Federal Financial Institutions Examination Council policy.  For example, credit card loans are charged off by the end of the month in which the account becomes 180 days past due or within 60 days from receiving notification about a specified event (e.g., bankruptcy of the borrower), whichever is earlier.  Residential mortgage loans are generally charged off to net realizable value no later than when the account becomes 180 days past due.  Other consumer loans, if collateralized, are generally charged off to net realizable value at 120 days past due.

Commercial-related loans (which are risk-rated) are charged to the allowance for loan losses when the loss has been confirmed. This determination includes many factors, including among others, the prioritization of our claim in bankruptcy, expectations of the workout/restructuring of the loan and valuation of the borrower’s equity.

Substantially all of our nonperforming loans are secured by real estate. The majority of these loans were underwritten in accordance with our loan-to-value policy guidelines which range from 70-85% at the time of origination.

At December 31, 2019 and 2018, our allowance for loan losses totaled $13.1 million, or 0.68% of total loans and $13.0 million, or 0.77% of total loans, respectively. The allowance for loan losses is considered adequate to cover our estimate of probable credit losses inherent in our loan portfolio. 

Table XII presents an allocation of the allowance for loan losses by loan type at each respective year end date, as follows:

Table XII - Allocation of the Allowance for Loan Losses
	2019				2018				2017				2016				2015
Dollars in thousands	Amount		% of loans in each category to total loans		Amount		% of loans in each category to total loans		Amount		% of loans in each category to total loans		Amount		% of loans in each category to total loans		Amount		% of loans in each category to total loans
Commercial	$	1,146	10.8	%	$	1,705	11.5	%	$	1,303	11.8	%	$	934	9.0	%	$	781	8.9	%
Commercial real estate	8,639		47.4	%	7,956		49.1	%	7,374		45.8	%	5,547		44.4	%	4,566		49.6	%
Construction and development	842		6.4	%	403		5.5	%	794		6.3	%	2,287		6.7	%	2,867		6.9	%
Residential real estate	1,961		26.2	%	2,636		28.9	%	2,621		31.1	%	2,682		30.8	%	3,099		31.7	%
Mortgage warehouse lines	—		6.6	%	—		2.3	%	—		1.9	%	—		6.5	%	—		—	%
Consumer	135		1.9	%	79		1.9	%	210		2.3	%	121		1.9	%	59		1.8	%
Other	351		0.7	%	268		0.8	%	263		0.8	%	103		0.7	%	100		1.1	%
Total	$	13,074	100.0	%	$	13,047	100.0	%	$	12,565	100.0	%	$	11,674	100.0	%	$	11,472	100.0	%

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A reconciliation of the activity in the allowance for loan losses follows:

Table XIII - Allowance for Loan Losses
Dollars in thousands	2019			2018			2017			2016			2015
Balance, beginning of year	$	13,047		$	12,565		$	11,674		$	11,472		$	11,167
Losses
Commercial	281			248			23			489			77
Commercial real estate	172			657			70			303			737
Construction and development	2			259			36			136			457
Residential real estate	1,003			913			519			344			701
Mortgage warehouse lines	—			—			—			—			—
Consumer	285			244			389			98			69
Other	360			282			251			185			110
Total	2,103			2,603			1,288			1,555			2,151
Recoveries
Commercial	17			16			124			73			10
Commercial real estate	22			23			180			48			303
Construction and development	108			270			278			840			456
Residential real estate	144			263			164			145			206
Mortgage warehouse lines	—			—			—			—			—
Consumer	168			141			82			76			105
Other	121			122			101			75			126
Total	580			835			929			1,257			1,206
Net losses	1,523			1,768			359			298			945
Provision for loan losses	1,550			2,250			1,250			500			1,250
Balance, end of year	$	13,074		$	13,047		$	12,565		$	11,674		$	11,472
Net losses as a % of average loans	0.08		%	0.11		%	0.02		%	0.02		%	0.09		%

At December 31, 2019 and 2018, we had approximately $19.3 million and $21.4 million, respectively, in property held for sale which was obtained as the result of foreclosure proceedings.  Although foreclosed property is recorded at the lower of investment in the real estate or fair value less estimated costs to sell, the prices ultimately realized upon their sale may or may not result in us recognizing additional loss. Refer to Note 9 of the accompanying consolidated financial statements for additional information regarding our property held for sale.

LIQUIDITY AND CAPITAL RESOURCES

Bank Liquidity:  Liquidity reflects our ability to ensure the availability of adequate funds to meet loan commitments and deposit withdrawals, as well as provide for other transactional requirements.  Liquidity is provided primarily by excess funds at correspondent banks, non-pledged securities and available lines of credit with the FHLB, Federal Reserve Bank of Richmond and correspondent banks, which totaled approximately $965.7 million or 40.2% of total consolidated assets at December 31, 2019.

Our liquidity strategy is to fund loan growth with deposits and other borrowed funds while maintaining an adequate level of short- and medium-term investments to meet normal daily loan and deposit activity.    As a member of the FHLB, we have access to borrow approximately $809.3 million, which is collateralized by $1.16 billion of residential mortgage loans, commercial loans, mortgage backed securities and securities of U. S. Government agencies and corporations.  At December 31, 2019, we had available borrowing capacity of $609.3 million on our FHLB line.  We also maintain a credit line with the Federal Reserve Bank of Richmond as a contingency liquidity vehicle.  The amount available on this line at December 31, 2019 was approximately $149 million, which is secured by a pledge of $283.0 million of our consumer loans, construction loans and commercial and industrial loan portfolios.  We have a $6 million unsecured line of credit with a correspondent bank.  Also, we classify all of our securities as available for sale to enable us to liquidate them if the need arises.  During 2019, our loan growth was funded primarily by deposits as our loans increased approximately $218.4 million, while total deposits increased $278.4 million. The additional excess deposit growth was used to pay down short-term FHLB borrowings.  

Liquidity risk represents the risk of loss due to the possibility that funds may not be available to satisfy current or future commitments based on external market issues, customer or creditor perception of financial strength and events unrelated to Summit such as war, terrorism, or financial institution market specific issues.  The Asset/Liability Management Committee

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(“ALCO”), comprised of members of senior management and certain members of the Board of Directors, oversees our liquidity risk management process.   The ALCO develops and recommends policies and limits governing our liquidity to the Board of Directors for approval with the objective of ensuring that we can obtain cost-effective funding to meet current and future obligations, as well as maintain sufficient levels of on-hand liquidity, under both normal and “stressed” circumstances.

One aspect of our liquidity management process is establishing contingent liquidity funding plans under various scenarios in order to prepare for unexpected liquidity shortages or events.  The following represents three “stressed” liquidity circumstances and our related contingency plans with respect to each.

Scenario 1 – Summit Community’s capital status becomes less than “well capitalized”.  Banks which are less than “well capitalized” in accordance with regulatory capital guidelines are prohibited from issuing new brokered deposits without first obtaining a waiver from the FDIC to do so.  In the event Summit Community’s capital status were to fall below well capitalized and was not successful in obtaining the FDIC’s waiver to issue new brokered deposits, Summit Community:

• Would have limited amounts of maturing brokered deposits to replace in the short-term, as we have limited our brokered deposits maturing in any one quarter to no more than $50 million.

• Presently has $966 million in available sources of liquid funds which could be drawn upon to fund maturing brokered deposits until Summit Community had restored its capital to well capitalized status.

• Would first seek to restore its capital to well capitalized status through capital contributions from Summit, its parent holding company.

• Would generally have no more than $100 million in brokered deposits maturing in any one year time frame, which is well within its presently available sources of liquid funds, if in the event Summit does not have the capital resources to restore Summit Community’s capital to well capitalized status.  One year would give Summit Community ample time to raise alternative funds either through retail deposits or the sale of assets and obtain capital resources to restore it to well capitalized status.

Scenario 2 – Summit Community’s credit quality deteriorates such that the FHLB restricts further advances.  If in the event that the Bank’s credit quality deteriorated to the point that further advances under its line with the FHLB were restricted, Summit Community:

• Would severely curtail lending and other growth activities until such time as access to this line could be restored, thus eliminating the need for net new advances.

• Would still have available current liquid funding sources secured by unemcumbered loans and securities totaling $466 million aside from its FHLB line, which would result in a funding source of approximately $316 million.

Scenario 3 – A competitive financial institution offers a retail deposit program at interest rates significantly above current market rates in Summit Community’s market areas.  If a competitive financial institution offered a retail deposit program at rates well in excess of current market rates in Summit Community’s market area, the Bank:

• Presently has $966 million in available sources of liquid funds which could be drawn upon immediately to fund any “net run off” of deposits from this activity.

• Would severely curtail lending and other growth activities so as to preserve the availability of as much contingency funds as possible.

• Would begin offering its own competitive deposit program when deemed prudent so as to restore the retail deposits lost to the competition.

We continuously monitor our liquidity position to ensure that day-to-day as well as anticipated funding needs are met.  We are not aware of any trends, commitments, events or uncertainties that have resulted in or are reasonably likely to result in a material change to our liquidity. Refer to page 12 of Item 1A. Risk Factors for further discussion of our liquidity risk.

Growth and Expansion:  During 2019, we spent approximately $9.2 million on capital expenditures for premises and equipment.  We expect our capital expenditures to approximate $3.0 - $3.5 million in 2020, primarily for new branch sites and construction and equipment and technological upgrades.

Capital Compliance:  Our capital position is strong. Stated as a percentage of total assets, our equity ratio was 10.3% at December 31, 2019 compared to 10.0% at December 31, 2018. Our subsidiary bank, Summit Community Bank, had Tier 1 risk-based, Total risk-based and Tier 1 leverage capital in excess of the minimum “well capitalized” levels of $82.7 million, $54.6 million and $128.9 million, respectively.  We intend to maintain Summit Community Bank's capital ratios at levels that

40

would be considered to be “well capitalized” in accordance with regulatory capital guidelines.  See Note 18 of the accompanying consolidated financial statements for further discussion of our regulatory capital.

During 2019, we retained $24.5 million of earnings and the net change in accumulated other comprehensive income was $3.6 million, principally resulting from $4.0 million unrealized net gains on securities available for sale.

On July 30, 2015, our Employee Stock Ownership Plan ("ESOP") purchased 225,000 shares of Summit Financial Group Inc. common stock, which is shown as a reduction of shareholders' equity, similar to a purchase of treasury stock. When the shares are committed to be released and become available for allocation to plan participants, the then fair value of such shares will be charged to compensation expense.  Unallocated shares owned by the Company’s ESOP are not considered to be outstanding for the purpose of computing earnings per share.

Dividends:  Cash dividends per share totaled $0.59 and $0.53 during 2019 and 2018, respectively, representing dividend payout ratios of 23.1% and 23.3%, respectively. It is our intention to continue to pay dividends on a quarterly basis during 2020. Future dividend amounts will depend on the earnings and financial condition of our subsidiary bank as well as general economic conditions.

The primary source of funds for the dividends paid to our shareholders is dividends received from our subsidiary bank.  Dividends paid by our subsidiary bank are subject to restrictions by banking law and regulations and require approval by the bank’s regulatory agency if dividends declared in any year exceed the bank’s current year's net income, as defined, plus its retained net profits of the two preceding years. In addition, cash dividends depend on the earnings and financial condition of our subsidiary bank and our capital adequacy as well as general economic conditions. During 2020, the net retained profits available for distribution to Summit as dividends without regulatory approval are approximately $41.6 million.

Contractual Cash Obligations:  During our normal course of business, we incur contractual cash obligations.  The following table summarizes our contractual cash obligations at December 31, 2019.

Table XIV - Contractual Cash Obligations
Dollars in thousands	Long Term Debt and Subordinated Debentures		Operating Leases
2020	$	19	$	124
2021	19		103
2022	21		105
2023	22		84
2024	23		59
Thereafter	20,202		62
Total	$	20,306	$	537

Off-Balance Sheet Arrangements:  We are involved with some off-balance sheet arrangements that have or are reasonably likely to have an effect on our financial condition, liquidity, or capital.  These arrangements at December 31, 2019 are presented in the following table.  Refer to Note 17 of the accompanying consolidated financial statements for further discussion of our off-balance sheet arrangements.

Table XV - Off-Balance Sheet Arrangements
Dollars in thousands
Commitments to extend credit
Revolving home equity and credit card lines	$	69,200
Construction loans	119,456
Other loans	225,637
Standby letters of credit	12,078
Total	$	426,371

41

LIBOR AND OTHER BENCHMARK RATES

Following the announcement by the U.K.’s Financial Conduct Authority in July 2017 that it will no longer persuade or require banks to submit rates for the London InterBank Offered Rate (LIBOR) after 2021, central banks and regulators around the world have commissioned working groups to find suitable replacements for Interbank Offered Rates ("IBOR") and other benchmark rates and to implement financial benchmark reforms more generally. These actions have resulted in uncertainty regarding the use of alternative reference rates ("ARRs") and could cause disruptions in a variety of markets. We will continue to monitor developments related to ARRs, however at this time, we do not anticipate any material adverse impact to our business operation or financial results during the period of transition from IBORs to ARRs.

QUARTERLY FINANCIAL DATA

A summary of our selected quarterly financial data is as follows:

	2019
	First		Second		Third		Fourth
Dollars in thousands, except per share amounts	Quarter		Quarter		Quarter		Quarter
Interest income	$	25,868	$	26,882	$	27,249	$	27,072
Net interest income	18,573		19,263		19,420		19,828
Net income	7,092		8,564		8,061		8,149
Basic earnings per share	$	0.56	$	0.68	$	0.65	$	0.66
Diluted earnings per share	$	0.56	$	0.68	$	0.65	$	0.65

	2018
	First		Second		Third		Fourth
Dollars in thousands, except per share amounts	Quarter		Quarter		Quarter		Quarter
Interest income	$	22,897	$	23,399	$	23,800	$	25,313
Net interest income	17,257		17,275		17,213		18,052
Net income	7,443		6,280		6,899		7,450
Basic earnings per share	$	0.60	$	0.51	$	0.56	$	0.60
Diluted earnings per share	$	0.60	$	0.51	$	0.55	$	0.60

42

Item 7A.  Quantitative and Qualitative Disclosures about Market Risk

MARKET RISK MANAGEMENT

Market risk is the risk of loss arising from adverse changes in the fair value of financial instruments due to changes in interest rates, exchange rates and equity prices.  Interest rate risk is our primary market risk and results from timing differences in the repricing of assets, liabilities and off-balance sheet instruments, changes in relationships between rate indices and the potential exercise of embedded options.  The principal objective of asset/liability management is to minimize interest rate risk and our actions in this regard are taken under the guidance of our Asset/Liability Management Committee (“ALCO”).  The ALCO is comprised of members of the Board of Directors and of members of senior management.  The ALCO actively formulates the economic assumptions that we use in our financial planning and budgeting process and establishes policies which control and monitor our sources, uses and prices of funds.

Some amount of interest rate risk is inherent and appropriate to the banking business.  Our net income is affected by changes in the absolute level of interest rates.  Our interest rate risk position at December 31, 2019 is moderately liability sensitive over a two year horizon, but asset sensitive over the long term. The nature of our lending and funding activities tends to drive our interest rate risk position to being liability sensitive. That is, liabilities are likely to reprice faster than assets, resulting in a decrease in net interest income in a rising rate environment, while a falling interest rate environment would produce an increase in net interest income.  Net interest income is also subject to changes in the shape of the yield curve.  In general, a flat yield curve results in a decline in our earnings due to the compression of earning asset yields and funding rates, while a steepening would result in increased earnings as margins widen.

Several techniques are available to monitor and control the level of interest rate risk.  We primarily use earnings simulations modeling to monitor interest rate risk.  The earnings simulation model forecasts the effects on net interest income under a variety of interest rate scenarios that incorporate changes in the absolute level of interest rates and changes in the shape of the yield curve.  Each increase or decrease in rates is assumed to gradually take place over a 12 month period and then remain stable, except for the up 400 scenario, which assumes a gradual increase in rates over 24 months.  Assumptions used to project yields and rates for new loans and deposits are derived from historical analysis.  Securities portfolio maturities and prepayments are reinvested in like instruments.  Mortgage loan prepayment assumptions are developed from industry estimates of prepayment speeds.  Noncontractual deposit repricings are modeled on historical patterns.

The following table presents the estimated sensitivity of our net interest income to changes in interest rates, as measured by our earnings simulation model as of December 31, 2019.  The sensitivity is measured as a percentage change in net interest income given the stated changes in interest rates (gradual change over 12 months, stable thereafter) compared to net interest income with rates unchanged in the same period.  The estimated changes set forth below are dependent on the assumptions discussed above.

	Estimated % Change in Net Interest Income over:
Change in Interest Rates	0 - 12 Months		13 - 24 Months
Down 100  basis points (1)	1.93	%	3.97	%
Up 100 basis points (1)	-1.18	%	0.53	%
Up 200 basis points (1)	-2.04	%	-0.86	%
(1) assumes a parallel shift in the yield curve over 12 months

43

REPORT OF MANAGEMENT’S ASSESSMENT OF INTERNAL CONTROL OVER FINANCIAL REPORTING

Summit Financial Group, Inc. is responsible for the preparation, integrity and fair presentation of the consolidated financial statements included in this annual report.  The consolidated financial statements and notes included in this annual report have been prepared in conformity with United States generally accepted accounting principles and necessarily include some amounts that are based on management’s best estimates and judgments.

We, as management of Summit Financial Group, Inc., are responsible for establishing and maintaining effective internal control over financial reporting that is designed to produce reliable financial statements in conformity with United States generally accepted accounting principles and in conformity with the Federal Financial Institutions Examination Council instructions for consolidated Reports of Condition and Income (call report instructions).  The system of internal control over financial reporting as it relates to the financial statements is evaluated for effectiveness by management and tested for reliability through a program of internal audits.  Actions are taken to correct potential deficiencies as they are identified.  Any system of internal control, no matter how well designed, has inherent limitations, including the possibility that a control can be circumvented or overridden and misstatements due to error or fraud may occur and not be detected.  Also, because of changes in conditions, internal control effectiveness may vary over time.  Accordingly, even an effective system of internal control will provide only reasonable assurance with respect to financial statement preparation.

The Audit Committee, consisting entirely of independent directors, meets regularly with management, internal auditors and the independent registered public accounting firm and reviews audit plans and results, as well as management’s actions taken in discharging responsibilities for accounting, financial reporting and internal control.  Yount, Hyde & Barbour, P.C., independent registered public accounting firm and the internal auditors have direct and confidential access to the Audit Committee at all times to discuss the results of their examinations.

Management assessed the Corporation’s system of internal control over financial reporting as of December 31, 2019.  In making this assessment, we used the criteria for effective internal control over financial reporting set forth in Internal Control-Integrated Framework, issued by the Committee of Sponsoring Organizations of the Treadway Commission(COSO) in 2013.  Based on this assessment, management concludes that, as of December 31, 2019, its system of internal control over financial reporting is effective and meets the criteria of the Internal Control-Integrated Framework.  Yount, Hyde & Barbour, P.C., independent registered public accounting firm, has issued an attestation report on the Corporation’s internal control over financial reporting.

Management is also responsible for compliance with the federal and state laws and regulations concerning dividend restrictions and federal laws and regulations concerning loans to insiders designated by the FDIC as safety and soundness laws and regulations.

/s/ H. Charles Maddy, III	/s/ Robert S. Tissue	/s/ Julie R. Markwood
President and Chief Executive Officer	Executive Vice President and Chief Financial Officer	Senior Vice President and Chief Accounting Officer

Moorefield, West Virginia

March 5, 2020

44

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors and Shareholders

Summit Financial Group, Inc.

Moorefield, West Virginia

Opinion on the Internal Control over Financial Reporting

We have audited Summit Financial Group, Inc. and subsidiaries' (the Company) internal control over financial reporting as of December 31, 2019, based on criteria established in Internal Control - Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission in 2013. In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2019, based on criteria established in Internal Control - Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission in 2013.

We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheets as of December 31, 2019 and 2018, and the related consolidated statements of income, comprehensive income, shareholders’ equity and cash flows for each of the three years in the period ended December 31, 2019 of the Company and our report dated March 6, 2020 expressed an unqualified opinion.

Basis for Opinion

The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting in the accompanying Report of Management’s Assessment of Internal Control over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audit also included performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.

Definition and Limitations of Internal Control over Financial Reporting

A company's internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company's internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the company's assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

/s/ YOUNT, HYDE & BARBOUR, P.C.

Winchester, Virginia

March 6, 2020

45

Item 8.  Financial Statements and Supplementary Data

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors and Shareholders

Summit Financial Group, Inc.

Moorefield, West Virginia

Opinion on the Financial Statements

We have audited the accompanying consolidated balance sheets of Summit Financial Group, Inc. and subsidiaries (the Company) as of December 31, 2019 and 2018, the related consolidated statements of income, comprehensive income, shareholders’ equity and cash flows for each of the three years in the period ended December 31, 2019, and the related notes to the consolidated financial statements (collectively, the financial statements). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2019 and 2018, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2019, in conformity with accounting principles generally accepted in the United States of America.

We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company’s internal control over financial reporting as of December 31, 2019, based on criteria established in Internal Control - Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission in 2013, and our report dated March 6, 2020 expressed an unqualified opinion on the effectiveness of the Company’s internal control over financial reporting.

Basis for Opinion

These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

/s/ YOUNT, HYDE & BARBOUR, P.C.

We have served as the Company’s auditor since 2016.

Winchester, Virginia

March 6, 2020

46

Consolidated Balance Sheets

	December 31,
Dollars in thousands	2019			2018
ASSETS
Cash and due from banks	$	28,137		$	23,061
Interest bearing deposits with other banks	33,751			36,479
Cash and cash equivalents	61,888			59,540
Debt securities available for sale	276,355			293,147
Other investments	12,972			16,635
Loans held for sale	1,319			400
Loans net of unearned income	1,913,499			1,695,052
Less: allowance for loan losses	(13,074		)	(13,047		)
Loans, net	1,900,425			1,682,005
Property held for sale	19,276			21,432
Premises and equipment, net	44,168			37,553
Accrued interest receivable	8,439			8,708
Goodwill and other intangible assets	23,022			25,842
Cash surrender value of life insurance policies	43,603			42,386
Other assets	12,025			12,938
Total assets	$	2,403,492		$	2,200,586
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Deposits
Non-interest bearing	$	260,553		$	222,120
Interest bearing	1,652,684			1,412,706
Total deposits	1,913,237			1,634,826
Short-term borrowings	199,345			309,084
Long-term borrowings	717			735
Subordinated debentures owed to unconsolidated subsidiary trusts	19,589			19,589
Other liabilities	22,840			16,522
Total liabilities	2,155,728			1,980,756
Commitments and Contingencies
Shareholders' Equity
Preferred stock, $1.00 par value, authorized 250,000 shares	—			—
Common stock and related surplus, $2.50 par value; authorized 20,000,000 shares; issued: 2019 - 12,474,641 shares, 2018 - 12,399,887 shares; outstanding: 2019 - 12,408,542 shares, 2018 - 12,312,933 shares	80,084			80,431
Unallocated common stock held by Employee Stock Ownership Plan -         2019 - 66,099 shares, 2018 - 86,954 shares	(714		)	(939		)
Retained earnings	165,859			141,354
Accumulated other comprehensive income (loss)	2,535			(1,016		)
Total shareholders' equity	247,764			219,830
Total liabilities and shareholders' equity	$	2,403,492		$	2,200,586

See Notes to Consolidated Financial Statements

47

Consolidated Statements of Income

	For the Year Ended December 31,
Dollars in thousands (except per share amounts)	2019		2018		2017
Interest income
Interest and fees on loans
Taxable	$	96,500	$	84,716	$	74,365
Tax-exempt	615		567		543
Interest and dividends on securities
Taxable	6,511		5,341		5,071
Tax-exempt	2,850		4,246		3,939
Interest on interest bearing deposits with other banks	595		539		609
Total interest income	107,071		95,409		84,527
Interest expense
Interest on deposits	23,697		17,675		11,210
Interest on short-term borrowings	5,303		5,993		4,473
Interest on long-term borrowings and subordinated debentures	987		1,944		2,697
Total interest expense	29,987		25,612		18,380
Net interest income	77,084		69,797		66,147
Provision for loan losses	1,550		2,250		1,250
Net interest income after provision for loan losses	75,534		67,547		64,897
Noninterest income
Insurance commissions	1,911		4,320		4,005
Trust and wealth management fees	2,564		2,653		1,863
Service charges on deposit accounts	5,094		4,631		4,109
Bank card revenue	3,536		3,152		2,697
Realized securities gains (losses), net	1,938		622		(14		)
Gain on sale of Summit Insurance Services, LLC	1,906		—		—
Bank owned life insurance income	1,044		1,022		1,017
Other	1,210		1,022		750
Total noninterest income	19,203		17,422		14,427
Noninterest expenses
Salaries, commissions and employee benefits	29,066		27,478		25,075
Net occupancy expense	3,417		3,364		3,011
Equipment expense	4,972		4,411		3,954
Professional fees	1,678		1,607		1,367
Advertising and public relations	698		654		578
Amortization of intangibles	1,701		1,671		1,410
FDIC premiums	88		830		1,065
Bank card expense	1,820		1,475		1,432
Foreclosed properties expense, net of gains/losses	2,498		1,350		1,339
Litigation settlement	—		—		9,900
Merger-related expenses	617		144		1,589
Other	8,599		6,889		7,025
Total noninterest expenses	55,154		49,873		57,745
Income before income tax expense	39,583		35,096		21,579
Income tax expense	7,717		7,024		9,664
Net income	$	31,866	$	28,072	$	11,915
Basic earnings per common share	$	2.55	$	2.27	$	1.00
Diluted earnings per common share	$	2.53	$	2.26	$	1.00

See Notes to Consolidated Financial Statements

48

Consolidated Statements of Comprehensive Income

	For the Year Ended December 31,
Dollars in thousands	2019			2018			2017
Net income	$	31,866		$	28,072		$	11,915
Other comprehensive income (loss):
Net unrealized (loss) gain on cashflow hedges of:
2019 - ($268), net of deferred taxes of ($64); 2018 - $1,645, net of deferred taxes of $395; 2017 - $2,556, net of deferred taxes of $946	(204		)	1,250			1,610
Net unrealized gain (loss) on securities available for sale of:
2019 - $5,244, net of deferred taxes of $1,258 and reclassification adjustment for net realized gains included in net income of $1,938, net of tax of $465	3,986
2018 - ($4,920) net of deferred taxes of ($1,181) and reclassification adjustment for net realized gains included in net income of $622, net of tax of $149				(3,739		)
2017 - $4,378, net of deferred taxes of $1,620 and reclassification adjustment for net realized losses included in net income of ($14), net of tax of ($5)							2,758
Net unrealized (loss) gain on other post-retirement benefits of:
2019 - ($120), net of deferred taxes of ($29); 2018 - ($341), net of deferred taxes of ($82); 2017- $521, net of deferred taxes of $193	(91		)	(259		)	328
Net unrealized loss on pension plan of:
2019 - ($184), net of deferred taxes of ($44)	(140		)	—			—
Total other comprehensive income (loss)	3,551			(2,748		)	4,696
Total comprehensive income	$	35,417		$	25,324		$	16,611

See Notes to Consolidated Financial Statements

49

Consolidated Statements of Shareholders’ Equity

For the Years Ended December 31, 2019, 2018 and 2017

Dollars in thousands (except per share amounts)	Common Stock and Related Surplus			Unallocated Common Stock Held by ESOP			Retained Earnings			Accumulated Other Compre- hensive Income (Loss)			Total Share- holders' Equity
Balance, December 31, 2016	$	46,757		$	(1,583	)	$	113,448		$	(3,262	)	$	155,360
Net income	—			—			11,915			—			11,915
Other comprehensive income										4,696			4,696
Reclassification of tax effects due to change in U.S.    corporate tax rate	—			—			(298		)	298			—
Exercise of stock options and SARs - 36,925 shares	304			—			—			—			304
Share-based compensation expense	385			—			—			—			385
Unallocated ESOP shares committed to     be released - 39,805 shares	515			431			—			—			946
Acquisition of First Century Bankshares, Inc. - 1,537,912 shares, net of issuance costs	32,968			—			—			—			32,968
Common stock issuances from reinvested dividends - 6,950 shares	169			—			—			—			169
Common stock cash dividends declared ($0.44 per share)	—			—			(5,238		)	—			(5,238		)
Balance, December 31, 2017	81,098			(1,152		)	119,827			1,732			201,505
Net income	—			—			28,072			—			28,072
Other comprehensive loss										(2,748		)	(2,748		)
Exercise of stock options - 6,800 shares	122			—			—			—			122
Share-based compensation expense	391			—			—			—			391
Unallocated ESOP shares committed to be released - 19,780 shares	272			213			—			—			485
Retirement of 82,423 shares of common stock	(1,689		)	—			—			—			(1,689		)
Common stock issuances from reinvested dividends - 10,214 shares	237			—			—			—			237
Common stock cash dividends declared ($0.53 per share)	—			—			(6,545		)	—			(6,545		)
Balance, December 31, 2018	80,431			(939		)	141,354			(1,016		)	219,830
Net income	—			—			31,866			—			31,866
Other comprehensive income										3,551			3,551
Exercise of stock options and SARs - 17,366 shares	7			—			—			—			7
Share-based compensation expense	590			—			—			—			590
Unallocated ESOP shares committed to be released - 20,855 shares	305			225			—			—			530
Retirement of 417,577 shares of common stock	(10,405		)	—			—			—			(10,405		)
Acquisition of Peoples Bankshares, Inc. - 465,931 shares, net of issuance costs	8,918			—			—			—			8,918
Common stock issuances from reinvested dividends - 9,034 shares	238			—			—			—			238
Common stock cash dividends declared ($0.59 per share)	—			—			(7,361		)	—			(7,361		)
Balance, December 31, 2019	$	80,084		$	(714	)	$	165,859		$	2,535		$	247,764

See Notes to Consolidated Financial Statements

50

Consolidated Statements of Cash Flows

	For the Year Ended December 31,
Dollars in thousands	2019			2018			2017
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$	31,866		$	28,072		$	11,915
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	2,614			2,168			1,887
Provision for loan losses	1,550			2,250			1,250
Share-based compensation expense	590			391			385
Deferred income tax expense (benefit)	103			(349		)	4,076
Loans originated for sale	(22,518		)	(15,939		)	(16,248		)
Proceeds from sale of loans	22,004			15,834			16,747
Gains on loans held for sale	(405		)	(295		)	(323		)
Realized securities (gains) losses, net	(1,938		)	(622		)	14
(Gain) loss on disposal of assets	(236		)	74			(133		)
Gain on sale of Summit Insurance Services, LLC	(1,906		)	—			—
Write-downs of foreclosed properties	2,075			776			885
Amortization of securities premiums, net	2,263			3,412			4,190
Accretion related to acquisitions, net	(998		)	(580		)	(1,051		)
Amortization of intangibles	1,701			1,671			1,410
Earnings on bank owned life insurance	(1,148		)	(1,028		)	(707		)
Decrease (increase) in accrued interest receivable	699			(378		)	(1,102		)
Decrease (increase) in other assets	133			(320		)	668
Increase in other liabilities	4,478			3,384			510
Net cash provided by operating activities	40,927			38,521			24,373
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from maturities and calls of securities available for sale	1,871			1,145			2,700
Proceeds from sales of securities available for sale	142,423			107,559			152,882
Principal payments received on securities available for sale	22,870			24,814			31,902
Purchases of securities available for sale	(90,341		)	(105,789		)	(148,174		)
Purchases of other investments	(18,228		)	(14,550		)	(18,604		)
Proceeds from redemptions of other investments	21,412			11,717			15,932
Net loan originations	(181,615		)	(92,189		)	(61,104		)
Purchases of premises and equipment	(9,218		)	(5,545		)	(6,185		)
Proceeds from disposal of premises and equipment	860			42			—
Improvements to property held for sale	(512		)	(1,304		)	(316		)
Proceeds from sale of repossessed assets & property held for sale	5,271			2,365			5,883
Proceeds from sale of Summit Insurance Services, LLC	7,117			—			—
Cash and cash equivalents from acquisition, net of cash consideration paid - 2019 - $12,740; 2017 - $14,989	20,589			—			39,053
Purchases of life insurance contracts	(69		)	—			—
Net cash (used in) provided by investing activities	(77,570		)	(71,735		)	13,969
CASH FLOWS FROM FINANCING ACTIVITIES
Net increase in demand deposit, NOW and savings accounts	204,757			43,282			48
Net decrease in time deposits	(38,409		)	(8,853		)	(45,261		)
Net (decrease) increase in short-term borrowings	(109,739		)	58,585			18,729
Repayment of long-term borrowings	(18		)	(45,016		)	(918		)
Proceeds from issuance of common stock, net of issuance costs	159			237			10
Purchase and retirement of common stock	(10,405		)	(1,689		)	—
Exercise of stock options	7			122			303
Dividends paid on common stock	(7,361		)	(6,545		)	(5,238		)
Net cash provided by (used in) financing activities	38,991			40,123			(32,327		)
Increase in cash and cash equivalents	2,348			6,909			6,015
Cash and cash equivalents:
Beginning	59,540			52,631			46,616
Ending	$	61,888		$	59,540		$	52,631

See Notes to Consolidated Financial Statements

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Consolidated Statements of Cash Flows - continued

	For the Year Ended December 31,
Dollars in thousands	2019		2018		2017
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Cash payments for:
Interest	$	29,855	$	25,426	$	18,201
Income taxes	$	7,850	$	7,539	$	5,996
SUPPLEMENTAL DISCLOSURES OF NONCASH INVESTING AND FINANCING ACTIVITIES
Real property and other assets acquired in settlement of loans	$	4,600	$	1,822	$	430
SUPPLEMENTAL DISCLOSURES OF NONCASH TRANSACTIONS INCLUDED IN ACQUISITION
Assets acquired	$	100,377	$	—	$	350,894
Liabilities assumed	$	114,151	$	—	$	361,045

See Notes to Consolidated Financial Statements

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NOTE 1.  BASIS OF PRESENTATION

We are a financial holding company headquartered in Moorefield, West Virginia.  We offer community banking and trust and wealth management services through our community bank subsidiary, Summit Community Bank (“Summit Community”). We provide commercial and retail banking services primarily in the Eastern Panhandle, Southern and North Central regions of West Virginia and the Northern, Shenandoah Valley and Southwestern regions of Virginia.  

Our accounting and reporting policies conform to accounting principles generally accepted in the United States of America and to general practices within the banking industry.

Use of estimates:  We must make estimates and assumptions that affect the reported amounts and disclosures in preparing our financial statements in conformity with accounting principles generally accepted in the United States of America.  Actual results could differ significantly from those estimates.

Principles of consolidation:  The accompanying consolidated financial statements include the accounts of Summit and its wholly-owned subsidiary.  All significant accounts and transactions among these entities have been eliminated.

Comprehensive income: Comprehensive income consists of net income and other comprehensive income. Other comprehensive income includes unrealized gains and losses on securities available for sale, cash flow hedges, other post-retirement benefits and pension plans, which are recognized as separate components of equity.

Cash and cash equivalents:  Cash and cash equivalents includes cash on hand, amounts due from banks (including cash items in process of clearing), interest bearing deposits with other banks and federal funds sold.

Loans held for sale: Loans held for sale are valued at the lower of aggregate carrying cost or fair value. Gains or losses realized on the sales of loans are recognized in other income at the time of sale.

Cash surrender value of life insurance policies: We have purchased life insurance policies on certain employees. Company owned life insurance is recorded at the amount that can be realized under the insurance contract at the balance sheet date, which is the cash surrender value adjusted for other charges or other amounts due that are probable at settlement.

Presentation of cash flows:  For purposes of reporting, cash flows from demand deposits, NOW accounts, savings accounts and short-term borrowings are reported on a net basis, since their original maturities are less than three months.  Cash flows from loans and certificates of deposit and other time deposits are reported net.

Advertising:  Advertising costs are expensed as incurred.

Trust services:  Assets held in an agency or fiduciary capacity are not our assets and are not included in the accompanying consolidated balance sheets.  Trust services income is recognized on the cash basis in accordance with customary banking practice.  Reporting such income on a cash basis does not produce results that are materially different from those that would result from use of the accrual basis.

Transfer of Financial Assets:Transfers of financial assets are accounted for as sales, when control over the assets has been relinquished. Control over transferred assets is deemed to be surrendered when the assets have been isolated from us, the transferee obtains the right (free of condition that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and we do not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity date.

Unconsolidated subsidiary trusts:  In accordance with accounting principles generally accepted in the United States, we do not consolidate subsidiary trusts which issue guaranteed preferred beneficial interests in subordinated debentures (Trust Preferred Securities).  The Trust Preferred Securities qualify as Tier 1 capital for regulatory purposes. See Note 13 of our Notes to Consolidated Financial Statements for a discussion of our subordinated debentures owed to unconsolidated subsidiary trusts.

Significant accounting policies:  The following table identifies our other significant accounting policies and the Note and page where a detailed description of each policy can be found.

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Acquisitions	Note 3	Page 54
Fair Value Measurements	Note 4	Page 56
Debt Securities	Note 5	Page 60
Other Investments	Note 6	Page 64
Loans	Note 7	Page 64
Allowance for Loan Losses	Note 8	Page 73
Property Held for Sale	Note 9	Page 76
Premises and Equipment	Note 10	Page 76
Goodwill and Other Intangible Assets	Note 11	Page 76
Securities Sold Under Agreements to Repurchase	Note 13	Page 78
Derivative Financial Instruments	Note 14	Page 79
Income Taxes	Note 15	Page 81
Employee Benefit Plans	Note 16	Page 83
Share-Based Compensation	Note 16	Page 83
Earnings Per Share	Note 19	Page 87
Accumulated Other Comprehensive Income	Note 20	Page 88
Revenue Recognition	Note 21	Page 88

NOTE 2.  SIGNIFICANT NEW AUTHORITATIVE ACCOUNTING GUIDANCE

Recently Adopted

We adopted ASU No. 2016-02, Leases (Topic 842) and its related amendments on its required effective date of January 1, 2019 utilizing the modified retrospective approach. Since there was no net income impact upon adoption of the new guidance, a cumulative effect adjustment to opening retained earnings was not deemed necessary. The impact was insignificant to our consolidated financial position. Total net rent expense included in the accompanying consolidated financial statements was $121,000 in 2019, $305,000 in 2018 and $284,000 in 2017.

We adopted ASU No. 2017-08, Receivables-Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities on its required effective date of January 1, 2019. This guidance shortens the amortization period for premiums on certain callable debt securities to the earliest call date (with an explicit, noncontingent call feature that is callable at a fixed price and on a preset date), rather than contractual maturity date as currently required under GAAP. The ASU does not impact instruments without preset call dates such as mortgage-backed securities. The adoption of the new pronouncement did not have a significant impact on our consolidated financial statements.

Pending Adoption

During June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326) - Measurement of Credit Losses on Financial Instruments. This ASU, as amended, among other things, requires the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions and reasonable and supportable forecasts. Financial institutions and other organizations will now use forward-looking information to better inform their credit loss estimates. Many of the loss estimation techniques applied today will still be permitted, although the inputs to those techniques will change to reflect the full amount of expected credit losses. In addition, the ASU amends the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration. This ASU, as amended, is effective for SEC filers which are not Smaller Reporting Companies for fiscal years and interim periods within those fiscal years, beginning after December 15, 2019. Accordingly, we adopted the guidance on January 1, 2020, whereby we increased the allowances for loan credit losses and unfunded commitments by $8.89 million and recorded a cumulative-effect adjustment to retained earnings of $7.02 million (net of deferred income taxes of $1.87 million).

In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement. The amendments modify the disclosure requirements in Topic 820 to add disclosures regarding changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements and the narrative description of measurement uncertainty. Certain disclosure requirements in Topic 820 are also removed or modified. The amendments are effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Certain of the amendments are to be applied prospectively while others are to be applied retrospectively. Early adoption is permitted. We do not expect the adoption of ASU 2018-13 to have a material impact on our consolidated financial statements.

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In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740) - Simplifying the Accounting for Income Taxes. The ASU is expected to reduce cost and complexity related to the accounting for income taxes by removing specific exceptions to general principles in Topic 740 (eliminating the need for an organization to analyze whether certain exceptions apply in a given period) and improving financial statement preparers’ application of certain income tax-related guidance. This ASU is part of the FASB’s simplification initiative to make narrow-scope simplifications and improvements to accounting standards through a series of short-term projects. For public business entities, the amendments are effective for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. Early adoption is permitted. We are currently assessing the impact that ASU 2019-12 will have on our consolidated financial statements.

In January 2020, the FASB issued ASU 2020-01, Investments - Equity Securities (Topic 321), Investments - Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815) - Clarifying the Interactions between Topic 321, Topic 323, and Topic 815. The ASU is based on a consensus of the Emerging Issues Task Force and is expected to increase comparability in accounting for these transactions. ASU 2016-01 made targeted improvements to accounting for financial instruments, including providing an entity the ability to measure certain equity securities without a readily determinable fair value at cost, less any impairment, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. Among other topics, the amendments clarify that an entity should consider observable transactions that require it to either apply or discontinue the equity method of accounting. For public business entities, the amendments in the ASU are effective for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. Early adoption is permitted. We do not expect the adoption of ASU 2020-01 to have a material impact on our consolidated financial statements.

NOTE 3. ACQUISITIONS

Cornerstone Financial Services, Inc.

On January 1, 2020, Summit Community Bank, Inc., a wholly-owned subsidiary of Summit, acquired 100% of the ownership of Cornerstone Financial Services, Inc. ("Cornerstone") and its subsidiary Cornerstone Bank, Inc., headquartered in West Union, West Virginia, for consideration of 570,000 shares of Summit common stock and $14.25 million cash. With this transaction, Summit expanded its footprint into Doddridge, Harrison, Ritchie and Wood counties of West Virginia. Cornerstone's assets and liabilities approximated $195 million and $176 million, respectively at December 31, 2019 and 2019's total revenues, net of interest expense were $3.3 million and 2019 net income totaled $638,000. The acquisition will be accounted for using the acquisition method of accounting and is deemed immaterial to our financial statements.

The former Cornerstone offices will continue to operate under that name until close of business on Friday, March 20, 2020, and will commence operating under the name Summit Community Bank on Monday, March 23, 2020.

Peoples Bankshares, Inc.

On January 1, 2019, Summit Community Bank, Inc. acquired 100% of the ownership of Peoples Bankshares, Inc. ("PBI") and its subsidiary First Peoples Bank, Inc., headquartered in Mullens, West Virginia, for consideration of 465,931 shares of Summit common stock and $12.7 million cash. With this transaction, Summit expanded its footprint into Wyoming and Raleigh counties of West Virginia. PBI's assets and liabilities approximated $133 million and $113 million, respectively, at December 31, 2018 and 2018's total revenues, net of interest expense were $3.6 million and 2018 net income totaled $21,000. The acquisition was deemed immaterial to our financial statements.

We accounted for the acquisition using the acquisition method of accounting in accordance with ASC 805, Business Combinations and accordingly, the assets and liabilities of PBI were recorded at their respective acquisition date fair values. Determining the fair value of assets and liabilities, particularly related to the loan portfolio, is a complicated process involving significant judgment regarding methods and assumptions used to calculate the estimated fair values. The fair values are preliminary and subject to refinement for up to one year after the acquisition date as additional information relative to the acquisition date fair values becomes available. We recognized goodwill of $2.10 million in connection with the acquisition (not deductible for income tax purposes), which is not amortized for financial reporting purposes, but is subject to annual impairment testing. The core deposit intangible represents the value of long-term deposit relationships acquired in this transaction and will be amortized over an estimated weighted average life of 15 years using an accelerated method which approximates the estimated run-off of the acquired deposits. The following table details the total consideration paid on January 1, 2019 in connection with the acquisition of PBI, the fair values of the assets acquired and liabilities assumed and the resulting preliminary goodwill.

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(Dollars in thousands)	As Recorded by PBI			Estimated Fair Value Adjustments			Estimated Fair Values as Recorded by Summit
Cash consideration							$	12,740
Stock consideration							8,997
Total consideration							21,737
Identifiable assets acquired:
Cash and cash equivalents	$	33,422		$	(93	)	$	33,329
Securities available for sale, at fair value	55,206			(93		)	55,113
Loans
Purchased performing	42,376			(977		)	41,399
Purchased credit impaired	—			—			—
Allowance for loan losses	(410		)	410			—
Premises and equipment	1,382			(567		)	815
Property held for sale	—			—			—
Core deposit intangibles	—			2,129			2,129
Other assets	1,110			(100		)	1,010
Total identifiable assets acquired	$	133,086		$	709		$	133,795
Identifiable liabilities assumed:
Deposits	112,064			315			112,379
Other liabilities	1,422			353			1,775
Total identifiable liabilities assumed	$	113,486		$	668		$	114,154
Net identifiable assets acquired	$	19,600		$	41		$	19,641
Goodwill resulting from acquisition							$	2,096

The following is a description of the methods used to determine the fair values of significant assets and liabilities presented above.

Cash and cash equivalents: The carrying amount of these assets approximates their fair value based on the short-term nature of these assets, with the exception of certificates of deposits held at other banks, which were adjusted to fair value based upon current interest rates.

Securities: Fair values for securities are based on quoted market prices, where available. If quoted market prices are not available, fair value estimates are based on observable inputs including quoted market prices for similar instruments, quoted market prices that are not in an active market or other inputs that are observable in the market.

Loans: Fair values for loans are based on a discounted cash flow methodology that considered factors including the type of loan and related collateral, collectibility, fixed or variable interest rate, term of loan, amortization status and current market rates. Loans were grouped together according to similar characteristics and were treated in the aggregate when applying various valuation techniques. The discount rates used for loans are based on current market rates for new originations of comparable loans and include adjustments for liquidity concerns, if any.

Premises and equipment: The fair value of PBI's real property was determined based upon appraisals by licensed appraisers. The fair value of tangible personal property, which is not material, was assumed to equal the carrying value by PBI.

Core deposit intangible: This intangible asset represents the value of the relationships with deposit customers. The fair value was estimated based on a discounted cash flow methodology that gave appropriate consideration to expected customer attrition rates, cost of the deposit base, reserve requirements and the net maintenance cost attributable to customer deposits.

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Deposits: The fair values of the demand and savings deposits by definition equal the amount payable on demand at the acquisition date. The fair values for time deposits are estimated using a discounted cash flow calculation that applies interest rates currently being offered to the contractual interest rates on such time deposits.

Loans acquired in a business combination are recorded at estimated fair value on the date of acquisition without the carryover of the related allowance for loan losses. Purchased credit-impaired (PCI) loans are those for which there is evidence of credit deterioration since origination and for which it is probable at the date of acquisition that we will not collect all contractually required principal and interest payments. When determining fair value, PCI loans are identified as of the date of acquisition based upon evidence of credit quality such as internal risk grades and past due and nonaccrual status. The difference between contractually required payments of principal and interest at acquisition and the cash flows expected to be collected at acquisition is accounted for as a"nonaccretable difference," and is available to absorb future credit losses on those loans. For purposes of determining the nonaccretable difference, no prepayments are generally assumed in determining contractually required payments of principal and interest or cash flows expected to be collected. Subsequent decreases to the expected cash flows will generally result in a provision for loan losses. Subsequent significant increases in cash flows may result in a reversal of the provision for loan losses to the extent of prior charges, or a transfer from nonaccretable difference to accretable yield. Further, any excess of cash flows expected at acquisition over the estimated fair value is accounted for as accretable yield and is recognized as interest income over the remaining life of the loan when there is a reasonable expectation about the amount and timing of such cash flows. No acquired PBI loans were designated as PCI loans.

Loans not designated PCI loans as of the acquisition date are designated purchased performing loans. We account for purchased performing loans using the contractual cash flows method of recognizing discount accretion based on the acquired loans’ contractual cash flows. Purchased performing loans are recorded at fair value, including a credit discount. The fair value discount is accreted as an adjustment to yield over the estimated lives of the loans. There is no allowance for loan losses established at the acquisition date for purchased performing loans. A provision for loan losses is recorded for any deterioration in these loans subsequent to the acquisition.

The following presents the financial effects of adjustments recognized in the statements of income for the years ended December 31, 2019, 2018 and 2017 related to all business combinations.

	Income increase (decrease)
Dollars in thousands	2019			2018			2017
Interest and fees on loans	$	694		$	386		$	825
Interest expense on deposits	316			205			237
Amortization of intangibles	(1,634		)	(1,471		)	(1,210		)
Income before income tax expense	$	(624	)	$	(880	)	$	(148	)

Pending MVB Bank Branches Acquisition

On November 22, 2019, Summit announced the signing of a definitive agreement under which Summit Community Bank, Inc. will acquire three MVB Bank locations in Berkeley County, West Virginia and one MVB Bank location in Jefferson County, West Virginia. The transaction is expected to close early second quarter 2020. Summit will assume certain deposits and loans whose balances at December 31, 2019, were approximately $190 million and $40 million, respectively.

NOTE 4.  FAIR VALUE MEASUREMENTS

In accordance with ASU 2016-01 - Recognition and measurement of Financial Assets and Financial Liabilities, fair value is based upon the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date.  A fair value hierarchy is utilized to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value.  The three levels of inputs used to measure fair value are as follows:

Level 1: Quoted prices (unadjusted) or identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date.

Level 2: Significant other observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active and other inputs that are observable or can be corroborated by observable market data.

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Level 3: Significant unobservable inputs that reflect a company’s own assumptions about the assumptions that market participants would use in pricing an asset or liability.

Accordingly, securities available-for-sale and derivative financial instruments are recorded at fair value on a recurring basis. Additionally, from time to time, we may be required to record other assets at fair value on a nonrecurring basis, such as loans held for sale, property held for sale and impaired loans held for investment.  These nonrecurring fair value adjustments typically involve application of lower of cost or market accounting or write-downs of individual assets.

Following is a description of valuation methodologies used for assets and liabilities recorded at fair value.

Cash and Cash Equivalents: The carrying amount of cash and cash equivalents is a reasonable estimate of fair value due to their short term nature.

Debt Securities Available for Sale:  Debt Securities available-for-sale are recorded at fair value on a recurring basis. Fair value measurement is based upon quoted prices, if available.  If quoted prices are not available, fair values are measured using independent pricing models or other model-based valuation techniques such as the present value of future cash flows, adjusted for the security’s credit rating, prepayment assumptions and other factors such as credit loss assumptions.  Level 1 securities include those traded on an active exchange, such as the New York Stock Exchange, U.S. Treasury securities that are traded by dealers or brokers in active over-the-counter markets and money market funds.  Level 2 securities include mortgage-backed securities issued by government sponsored entities, municipal bonds and corporate debt securities. Certain trust preferred securities classified as corporate debt securities are Level 3 due to limited market trades of these classes of securities.

Other Investments: The carrying value of other investments, consisting principally of Federal Home Loan Bank stock, is a reasonable estimate of fair value of this stock. This stock is non-transferable and can only be redeemed at its par value by FHLB.

Derivative Financial Instruments:  Derivative financial instruments are recorded at fair value on a recurring basis. Fair value measurement is based on pricing models run by a third-party, utilizing observable market-based inputs.  All future floating cash flows are projected and both floating and fixed cash flows are discounted to the valuation date.  As a result, we classify interest rate swaps as Level 2.

Loans Held for Sale:  Loans held for sale are carried at the lower of cost or fair value.  The fair value of loans held for sale is based on what secondary markets are currently offering for portfolios with similar characteristics.  As such, we classify loans subject to nonrecurring fair value adjustments as Level 2.

Loans:  We do not record loans at fair value on a recurring basis. However, from time to time, a loan is considered impaired and an allowance for loan loss is established.  Loans for which it is probable that payment of interest and principal will not be made in accordance with the original contractual terms of the loan agreement are considered impaired.  Once a loan is identified as individually impaired, management measures impairment using one of several methods, including collateral value, liquidation value and discounted cash flows. Those impaired loans not requiring an allowance represent loans for which the discounted cash flows or collateral value exceeds the recorded investments in such loans. These loans are carried at recorded loan investment and therefore are not included in the following tables of loans measured at fair value. Impaired loans internally graded as substandard or doubtful are evaluated using the fair value of collateral method.  All other impaired loans are measured for impairment using the discounted cash flows method. Impaired loans where an allowance is established based on the fair value of collateral are included in the fair value hierarchy. When the fair value of the collateral is based on an observable market price or a current appraised value, we record the impaired loan as nonrecurring Level 2. When a current appraised value is not available and there is no observable market price, we record the impaired loan as nonrecurring Level 3.  

When impaired loans are deemed required to be included in the fair value hierarchy, management immediately begins the process of evaluating the estimated fair value of the underlying collateral to determine if a related specific allowance for loan losses or charge-off is necessary.  Current appraisals are ordered once a loan is deemed impaired if the existing appraisal is more than twelve months old, or more frequently if there is known deterioration in value. For recently identified impaired loans, a current appraisal may not be available at the financial statement date. Until the current appraisal is obtained, the original appraised value is discounted, as appropriate, to compensate for the estimated depreciation in the value of the loan’s underlying collateral since the date of the original appraisal.  Such discounts are generally estimated based upon management’s knowledge of sales of similar collateral within the applicable market area and its knowledge of other real estate market-related data as well as general economic trends.  When a new appraisal is received (which is generally within 3 months of a loan being identified as impaired), management then re-evaluates the fair value of the collateral and adjusts any specific allocated

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allowance for loan losses, as appropriate.  In addition, management also assigns a discount of 7–10% for the estimated costs to sell the collateral.

Property Held for Sale:  Property held for sale consists of real estate acquired in foreclosure or other settlement of loans. Foreclosed assets are initially recorded at fair value, less estimated selling costs, when acquired establishing a new cost basis. Such assets are carried on the balance sheet at the lower of the investment in the real estate or its fair value less estimated selling costs.  The fair value of foreclosed properties is determined on a nonrecurring basis generally utilizing current appraisals performed by an independent, licensed appraiser applying an income or market value approach using observable market data (Level 2).  Updated appraisals of foreclosed properties are generally obtained if the existing appraisal is more than 18 months old or more frequently if there is a known deterioration in value.  However, if a current appraisal is not available, the original appraised value is discounted, as appropriate, to compensate for the estimated depreciation in the value of the real estate since the date of its original appraisal.  Such discounts are generally estimated based upon management’s knowledge of sales of similar property within the applicable market area and its knowledge of other real estate market-related data as well as general economic trends (Level 3).  Upon foreclosure, any fair value adjustment is charged against the allowance for loan losses.  Subsequent fair value adjustments are recorded in the period incurred and included in other noninterest expense in the consolidated statements of income.

Assets and Liabilities Recorded at Fair Value on a Recurring Basis

The tables below present the recorded amount of assets and liabilities measured at fair value on a recurring basis.

	Balance at		Fair Value Measurements Using:
Dollars in thousands	December 31, 2019		Level 1		Level 2		Level 3
Available for sale securities
U.S. Government sponsored agencies	$	20,864	$	—	$	20,864	$	—
Mortgage backed securities:
Government sponsored agencies	70,975		—		70,975		—
Nongovernment sponsored entities	10,229		—		10,229		—
State and political subdivisions	49,973		—		49,973		—
Corporate debt securities	18,200		—		18,200		—
Asset-backed securities	33,014		—		33,014		—
Tax-exempt state and political subdivisions	73,100		—		73,100		—
Total available for sale securities	$	276,355	$	—	$	276,355	$	—
Derivative financial liabilities
Interest rate swaps	$	988	$	—	$	988	$	—

	Balance at		Fair Value Measurements Using:
Dollars in thousands	December 31, 2018		Level 1		Level 2		Level 3
Available for sale securities
U.S. Government sponsored agencies	$	26,140	$	—	$	26,140	$	—
Mortgage backed securities:
Government sponsored agencies	80,309		—		80,309		—
Nongovernment sponsored entities	614		—		614		—
State and political subdivisions	19,243		—		19,243		—
Corporate debt securities	14,512		—		14,512		—
Asset-backed securities	25,175		—		25,175		—
Tax-exempt state and political subdivisions	127,154		—		127,154		—
Total available for sale securities	$	293,147	$	—	$	293,147	$	—
Derivative financial assets
Interest rate swaps	$	555	$	—	$	555	$	—
Derivative financial liabilities
Interest rate swaps	$	411	$	—	$	411	$	—

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Assets and Liabilities Recorded at Fair Value on a Nonrecurring Basis

We may be required, from time to time, to measure certain assets at fair value on a nonrecurring basis in accordance with U.S. generally accepted accounting principles.  These include assets that are measured at the lower of cost or market that were recognized at fair value below cost at the end of the period.  Assets measured at fair value on a nonrecurring basis are included in the tables below.

	Balance at		Fair Value Measurements Using:
Dollars in thousands	December 31, 2019		Level 1		Level 2		Level 3
Residential mortgage loans held for sale	$	1,319	$	—	$	1,319	$	—
Collateral-dependent impaired loans
Commercial	$	4,831	$	—	$	4,831	$	—
Commercial real estate	1,863		—		1,863		—
Construction and development	425		—		425		—
Residential real estate	692		—		566		126
Total collateral-dependent impaired loans	$	7,811	$	—	$	7,685	$	126
Property held for sale
Commercial real estate	$	1,304	$	—	$	1,304	$	—
Construction and development	12,182		—		12,182		—
Residential real estate	705		—		705		—
Total property held for sale	$	14,191	$	—	$	14,191	$	—

	Balance at		Fair Value Measurements Using:
Dollars in thousands	December 31, 2018		Level 1		Level 2		Level 3
Residential mortgage loans held for sale	$	400	$	—	$	400	$	—
Collateral-dependent impaired loans
Commercial	$	2,660	—		$	2,611	$	49
Commercial real estate	420		—		420		—
Construction and development	759		—		759		—
Residential real estate	763		—		763		—
Total collateral-dependent impaired loans	$	4,602	$	—	$	4,553	$	49
Property held for sale
Commercial real estate	$	1,677	$	—	$	1,677	$	—
Construction and development	16,363		—		16,363		—
Residential real estate	403		—		403		—
Total property held for sale	$	18,443	$	—	$	18,443	$	—

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The following tables present the carrying amount, fair value, and placement in the fair value hierarchy of our financial instruments as of December 31, 2019 and December 31, 2018.

	At December 31,
	2019				Fair Value Measurements Using:
Dollars in thousands	Carrying Value		Estimated Fair Value		Level 1		Level 2		Level 3
Financial assets
Cash and cash equivalents	$	61,888	$	61,888	$	—	$	61,888	$	—
Securities available for sale	276,355		276,355		—		276,355		—
Other investments	12,972		12,972		—		12,972		—
Loans held for sale, net	1,319		1,319		—		1,319		—
Loans, net	1,900,425		1,901,020		—		7,685		1,893,335
Accrued interest receivable	8,439		8,439		—		8,439		—
Cash surrender value of life insurance policies	43,603		43,603		—		43,603		—
Derivative financial assets	—		—		—		—		—
	$	2,305,001	$	2,305,596	$	—	$	412,261	$	1,893,335
Financial liabilities
Deposits	$	1,913,237	$	1,918,610	$	—	$	1,918,610	$	—
Short-term borrowings	199,345		199,345		—		199,345		—
Long-term borrowings	717		854		—		854		—
Subordinated debentures owed to unconsolidated subsidiary trusts	19,589		19,589		—		19,589		—
Accrued interest payable	1,234		1,234		—		1,234		—
Derivative financial liabilities	988		988		—		988		—
	$	2,135,110	$	2,140,620	$	—	$	2,140,620	$	—

	At December 31
		2018				Fair Value Measurements Using:
Dollars in thousands		Carrying Value		Estimated Fair Value		Level 1		Level 2		Level 3
Financial assets
Cash and cash equivalents		$	59,540	$	59,540	$	—	$	59,540	$	—
Securities available for sale		293,147		293,147		—		293,147		—
Other investments		16,635		16,635		—		16,635		—
Loans held for sale, net		400		400		—		400		—
Loans, net		1,682,005		1,666,834		—		4,553		1,662,281
Accrued interest receivable		8,708		8,708		—		8,708		—
Cash surrender value of life insurance policies		42,386		42,386		—		42,386		—
Derivative financial assets		555		555		—		555		—
		$	2,103,376	$	2,088,205	$	—	$	425,924	$	1,662,281
Financial liabilities
Deposits		$	1,634,826	$	1,631,456	$	—	$	1,631,456	$	—
Short-term borrowings		309,084		309,084		—		309,084		—
Long-term borrowings		735		843		—		843		—
Subordinated debentures owed to unconsolidated subsidiary trusts		19,589		19,589		—		19,589		—
Accrued interest payable		1,102		1,102		—		1,102		—
Derivative financial liabilities		411		411		—		411		—
		$	1,965,747	$	1,962,485	$	—	$	1,962,485	$	—

NOTE 5.  DEBT SECURITIES

We classify debt securities as “held to maturity”, “available for sale” or “trading” according to management’s intent.  The appropriate classification is determined at the time of purchase of each security and re-evaluated at each reporting date.

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Securities held to maturity: Certain debt securities for which we have the positive intent and ability to hold to maturity are reported at cost, adjusted for amortization of premiums and accretion of discounts.  There are no securities classified as held to maturity in the accompanying financial statements.

Securities available for sale: Securities not classified as "held to maturity" or as "trading" are classified as "available for sale."  Securities classified as "available for sale" are those securities that we intend to hold for an indefinite period of time, but not necessarily to maturity.  "Available for sale" securities are reported at estimated fair value net of unrealized gains or losses, which are adjusted for applicable income taxes and reported as a separate component of shareholders' equity.

Trading securities: There are no securities classified as "trading" in the accompanying financial statements.

Impairment assessment:  Impairment exists when the fair value of a security is less than its cost.  Cost includes adjustments made to the cost basis of a security for accretion, amortization and previous other-than-temporary impairments.  We perform a quarterly assessment of the debt securities in our investment portfolio that have an unrealized loss to determine whether the decline in the fair value of these securities below their cost is other-than-temporary.  This determination requires significant judgment.  Impairment is considered other-than-temporary when it becomes probable that we will be unable to recover the cost of an investment.  This assessment takes into consideration factors such as the length of time and the extent to which the market values have been less than cost, the financial condition and near term prospects of the issuer including events specific to the issuer or industry, defaults or deferrals of scheduled interest, principal or dividend payments, external credit ratings and recent downgrades and our intent and ability to hold the security for a period of time sufficient to allow for a recovery in fair value.  If a decline in fair value is judged to be other than temporary, the cost basis of the individual security is written down to fair value which then becomes the new cost basis.  The amount of the write down is included in other-than-temporary impairment of securities in the consolidated statements of income.  The new cost basis is not adjusted for subsequent recoveries in fair value, if any.

Realized gains and losses on sales of securities are recognized on the specific identification method.  Amortization of premiums and accretion of discounts are computed using the interest method.

The amortized cost, unrealized gains, unrealized losses and estimated fair values of securities at December 31, 2019 and 2018, are summarized as follows:

	December 31, 2019
	Amortized		Unrealized
Dollars in thousands	Cost		Gains		Losses		Fair Value
Available for Sale
Taxable debt securities
U.S. Government and agencies and corporations	$	21,036	$	212	$	384	$	20,864
Residential mortgage-backed securities:
Government-sponsored agencies	70,379		1,031		435		70,975
Nongovernment-sponsored entities	10,253		17		41		10,229
State and political subdivisions
General obligations	12,603		25		171		12,457
Water and sewer revenues	7,170		71		114		7,127
Lease revenues	5,310		25		77		5,258
University revenues	5,917		164		16		6,065
Other revenues	18,831		344		109		19,066
Corporate debt securities	18,268		81		149		18,200
Asset-backed securities	33,826		—		812		33,014
Total taxable debt securities	203,593		1,970		2,308		203,255
Tax-exempt debt securities
State and political subdivisions
General obligations	36,673		2,526		—		39,199
Water and sewer revenues	9,565		633		—		10,198
Lease revenues	8,455		598		—		9,053
Other revenues	13,929		728		7		14,650
Total tax-exempt debt securities	68,622		4,485		7		73,100
Total available for sale securities	$	272,215	$	6,455	$	2,315	$	276,355

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	December 31, 2018
	Amortized		Unrealized
Dollars in thousands	Cost		Gains		Losses		Fair Value
Available for Sale
Taxable debt securities
U.S. Government and agencies and corporations	$	26,303	$	203	$	366	$	26,140
Residential mortgage-backed securities:
Government-sponsored agencies	80,883		603		1,177		80,309
Nongovernment-sponsored entities	611		4		1		614
State and political subdivisions
General obligations	6,081		—		126		5,955
Other revenues	13,457		17		186		13,288
Corporate debt securities	14,807		9		304		14,512
Asset-backed securities	25,288		10		123		25,175
Total taxable debt securities	167,430		846		2,283		165,993
Tax-exempt debt securities
State and political subdivisions
General obligations	65,626		624		344		65,906
Water and sewer revenues	20,018		225		98		20,145
Lease revenues	10,980		135		7		11,108
Other revenues	30,197		77		279		29,995
Total tax-exempt debt securities	126,821		1,061		728		127,154
Total available for sale securities	$	294,251	$	1,907	$	3,011	$	293,147

The below information is relative to the five states where issuers with the highest volume of state and political subdivision securities held in our portfolio are located.  We own no such securities of any single issuer which we deem to be a concentration.

	December 31, 2019
	Amortized		Unrealized
Dollars in thousands	Cost		Gains		Losses		Fair Value
California	$	21,194	$	1,109	$	128	$	22,175
Michigan	10,864		623		—		11,487
Illinois	9,245		410		—		9,655
Texas	8,934		344		64		9,214
West Virginia	8,490		206		7		8,689

Management performs pre-purchase and ongoing analysis to confirm that all investment securities meet applicable credit quality standards.  We principally use credit ratings from Nationally Recognized Statistical Rating Organizations (“NRSROs”) to support analyses of our portfolio of securities issued by state and political subdivisions, as we generally do not purchase securities that are rated below the six highest NRSRO rating categories.  In addition to considering a security’s NRSRO rating, we also assess or confirm through an internal review of an issuer’s financial information and other applicable information that:  1) the issuer’s risk of default is low; 2) the characteristics of the issuer’s demographics and economic environment are satisfactory; and 3) the issuer’s budgetary position and stability of tax or other revenue sources are sound.

The proceeds from sales, calls and maturities of available for sale securities, including principal payments received on mortgage-backed obligations, and the related gross gains and losses realized are as follows:

Dollars in thousands	Proceeds from						Gross realized
			Calls and		Principal
Years ended December 31,	Sales		Maturities		Payments		Gains		Losses
2019	$	142,423	$	1,871	$	22,870	$	2,270	$	332
2018	107,559		1,145		24,814		1,785		1,163
2017	152,882		2,700		31,902		685		699

Residential mortgage-backed obligations having contractual maturities ranging from 5 to 50 years are included in the following maturity distribution schedules based on their anticipated average life to maturity, which ranges from 1 month to 32

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years.  Accordingly, discounts are accreted and premiums are amortized over the anticipated average life to maturity of the specific obligation.

The maturities, amortized cost and estimated fair values of securities at December 31, 2019, are summarized as follows:

Dollars in thousands	Amortized Cost		Fair Value
Due in one year or less	$	29,692	$	29,768
Due from one to five years	79,060		79,170
Due from five to ten years	60,439		60,627
Due after ten years	103,024		106,790
Total	$	272,215	$	276,355

At December 31, 2019 and 2018, securities with estimated fair values of $86.1 million and $58.6 million respectively, were pledged to secure public deposits and for other purposes required or permitted by law.

We held 88 available for sale securities having an unrealized loss at December 31, 2019.  We do not intend to sell these securities and it is more likely than not that we will not be required to sell these securities before recovery of their amortized cost bases.  We believe that this decline in value is primarily attributable to the lack of market liquidity and to changes in market interest rates and not due to credit quality.  Accordingly, no other-than-temporary impairment charge to earnings is warranted at this time.

Provided below is a summary of securities available for sale which were in an unrealized loss position at December 31, 2019 and 2018.

	2019
		Less than 12 months				12 months or more				Total
Dollars in thousands	# of securities in loss position	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
Taxable debt securities
U.S. Government agencies and corporations	15	$	—	$	—	$	14,903	$	384	$	14,903	$	384
Residential mortgage-backed securities:
Government-sponsored agencies	21	12,298		96		15,174		339		27,472		435
Nongovernment-sponsored entities	4	8,323		41		—		—		8,323		41
State and political subdivisions:
General obligations	10	10,581		171		—		—		10,581		171
Water and sewer revenues	4	4,421		114		—		—		4,421		114
Lease revenues	4	4,235		77		—		—		4,235		77
University revenues	1	1,307		16		—		—		1,307		16
Other revenues	6	6,517		109		—		—		6,517		109
Corporate debt securities	6	1,686		3		3,739		146		5,425		149
Asset-backed securities	15	3,441		34		29,573		778		33,014		812
Tax-exempt debt securities
State and political subdivisions:
Other revenues	2	1,183		7		—		—		1,183		7
Total	88	$	53,992	$	668	$	63,389	$	1,647	$	117,381	$	2,315

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	2018
		Less than 12 months				12 months or more				Total
Dollars in thousands	# of securities in loss position	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
Taxable debt securities
U.S. Government agencies and corporations	15	$	12,185	$	184	$	7,464	$	182	$	19,649	$	366
Residential mortgage-backed securities:
Government-sponsored agencies	37	23,277		241		24,472		936		47,749		1,177
Nongovernment-sponsored entities	1	—		—		436		1		436		1
State and political subdivisions:
General obligations	8	—		—		5,222		126		5,222		126
Other revenues	11	968		16		9,450		170		10,418		186
Corporate debt securities	7	2,759		109		4,587		195		7,346		304
Asset-backed securities	9	20,129		123		—		—		20,129		123
Tax-exempt debt securities
State and political subdivisions:
General obligations	25	7,273		50		16,830		294		24,103		344
Water and sewer revenues	7	989		6		4,311		92		5,300		98
Lease revenues	2	553		—		557		7		1,110		7
Other revenues	12	7,309		62		11,531		217		18,840		279
Total	134	$	75,442	$	791	$	84,860	$	2,220	$	160,302	$	3,011

NOTE 6. OTHER INVESTMENTS

Equity securities are carried at fair value, with changes in fair value reported in net income. Equity securities without readily determinable fair values are carried at cost, minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for an identical or similar investment. Our equity securities totaled $137,000 at December 31, 2019 and 2018.

We are a member bank of the Federal Home Loan Bank ("FHLB") system. Members are required to own a certain amount of stock based on the level of borrowings from FHLB and other factors. FHLB stock is carried at cost and periodically evaluated for impairment based on ultimate recovery of par value. Dividends are reported as income as earned. This stock totaled $8.9 million and $13.1 million at December 31, 2019 and 2018.

We have invested in two limited partnerships which own interests in diversified portfolios of qualified affordable housing projects. Also, we have purchased substantially all the interest in a limited liability company owning a qualified rehabilitated multi-family housing project. As result of these investments, Summit is allocated its proportional share of each investees’ operating losses and Federal Low-Income Housing and Rehabilitation Tax Credits. We use the proportional amortization method to account for each of these investments, whereby the cost of the investment is amortized in proportion to the amount of tax credits and other tax benefits received, and the net investment performance is recognized in the consolidated statement of income as a component of the provision for current income taxes. As of December 31, 2019 and 2018, our carrying value of these investments totaled $3.9 million and $3.35 million, respectively. For the years ended December 31, 2019, 2018 and 2017, we realized $669,000, $1,544,000 and $927,000, respectively, in tax credits and other tax benefits on these investments, against which we amortized these investments $552,000, $1.27 million and $680,000 and recognized income tax benefits of $117,000, $274,000 and $247,000.

NOTE 7.  LOANS

Loans are generally stated at the amount of unpaid principal, reduced by unearned discount and allowance for loan losses. Interest on loans is accrued daily on the outstanding balances.  Loan origination fees and certain direct loan origination costs are deferred and amortized as adjustments of the related loan yield over its contractual life. We categorize residential real estate loans in excess of $600,000 as jumbo loans.

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Generally, loans are placed on nonaccrual status when principal or interest is greater than 90 days past due based upon the loan's contractual terms.  Interest is accrued daily on impaired loans unless the loan is placed on nonaccrual status.  Impaired loans are placed on nonaccrual status when the payments of principal and interest are in default for a period of 90 days, unless the loan is both well-secured and in the process of collection.  Interest on nonaccrual loans is recognized primarily using the cost-recovery method.  Loans may be returned to accrual status when repayment is reasonably assured and there has been demonstrated performance under the terms of the loan or, if applicable, the terms of the restructured loans.

Commercial-related loans or portions thereof are charged off to the allowance for loan losses when the loss has been confirmed.  This determination is made on a case by case basis considering many factors, including the prioritization of our claim in bankruptcy, expectations of the workout/restructuring of the loan and valuation of the borrower’s equity.  We deem a loss confirmed when a loan or a portion of a loan is classified “loss” in accordance with bank regulatory classification guidelines, which state, “Assets classified loss are considered uncollectible and of such little value that their continuance as bankable assets is not warranted”.

Consumer-related loans are generally charged to the allowance for loan losses upon reaching specified stages of delinquency, in accordance with the Federal Financial Institutions Examination Council policy.  For example, credit card loans are charged off by the end of the month in which the account becomes 180 days past due or within 60 days from receiving notification about a specified event (e.g., bankruptcy of the borrower), whichever is earlier.  Residential mortgage loans are generally charged off to net realizable value no later than when the account becomes 180 days past due.  Other consumer loans, if collateralized, are generally charged off to net realizable value at 120 days past due.

Loans are summarized as follows:

Dollars in thousands	2019		2018
Commercial	$	207,138	$	194,315
Commercial real estate
Owner-occupied	276,218		266,362
Non-owner occupied	629,206		564,826
Construction and development
Land and land development	84,112		68,833
Construction	37,523		24,731
Residential real estate
Non-jumbo	354,963		336,977
Jumbo	70,947		73,599
Home equity	76,568		80,910
Mortgage warehouse lines	126,237		39,140
Consumer	36,470		32,460
Other	14,117		12,899
Total loans, net of unearned fees	1,913,499		1,695,052
Less allowance for loan losses	13,074		13,047
Loans, net	$	1,900,425	$	1,682,005

The outstanding balance and the recorded investment of acquired loans included in the consolidated balance sheet at December 31, 2019 and 2018 are as follows:

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	Acquired Loans
	2019						2018
Dollars in thousands	Purchased Credit Impaired		Purchased Performing		Total		Purchased Credit Impaired		Purchased Performing		Total
Outstanding balance	$	3,488	$	131,745	$	135,233	$	4,275	$	138,167	$	142,442
Recorded investment
Commercial	$	—	$	3,333	$	3,333	$	—	$	3,934	$	3,934
Commercial real estate
Owner-occupied	—		17,416		17,416		—		16,133		16,133
Non-owner occupied	653		12,957		13,610		1,162		23,431		24,593
Construction and development
Land and land development	—		3,031		3,031		—		5,161		5,161
Construction	—		—		—		—		—		—
Residential real estate
Non-jumbo	1,247		83,856		85,103		1,374		77,894		79,268
Jumbo	944		3,055		3,999		975		2,577		3,552
Home equity	—		2,144		2,144		—		2,805		2,805
Consumer	—		4,159		4,159		—		4,630		4,630
Other	—		13		13		—		122		122
Total recorded investment	$	2,844	$	129,964	$	132,808	$	3,511	$	136,687	$	140,198

The following table presents a summary of the change in the accretable yield of the purchased credit impaired ("PCI") loan portfolio during 2019 and 2018:

Dollars in thousands	2019			2018
Accretable yield, January 1	$	632		$	745
Accretion	(63		)	(115		)
Reclassification of nonaccretable difference due to improvement in expected cash flows	—			—
Other changes, net	(46		)	2
Accretable yield, December 31	$	523		$	632

The following presents loan maturities at December 31, 2019:

	Within		After 1 but		After
Dollars in thousands	1 Year		within 5 Years		5 Years
Commercial	$	101,625	$	63,132	$	42,381
Commercial real estate	88,846		119,993		696,585
Construction and development	43,713		28,611		49,311
Residential real estate	25,830		39,072		437,576
Mortgage warehouse lines	126,237		—		—
Consumer	5,247		25,849		5,374
Other	1,026		6,232		6,859
	$	392,524	$	282,889	$	1,238,086
Loans due after one year with:
Variable rates			$	564,490
Fixed rates			956,485
			$	1,520,975

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The following table presents the contractual aging of the recorded investment in past due loans by class as of December 31, 2019 and 2018.

	At December 31, 2019
	Past Due										> 90 days and Accruing
Dollars in thousands	30-59 days		60-89 days		> 90 days		Total		Current
Commercial	$	216	$	—	$	383	$	599	$	206,539	$	—
Commercial real estate
Owner-occupied	119		137		4,035		4,291		271,927		—
Non-owner occupied	879		179		1,363		2,421		626,785		—
Construction and development
Land and land development	208		28		188		424		83,688		—
Construction	—		—		138		138		37,385		—
Residential mortgage
Non-jumbo	4,172		826		1,877		6,875		348,088		—
Jumbo	—		—		—		—		70,947		—
Home equity	760		—		223		983		75,585		—
Mortgage warehouse lines	—		—		—		—		126,237		—
Consumer	208		86		112		406		36,064		42
Other	—		—		100		100		14,017		—
Total	$	6,562	$	1,256	$	8,419	$	16,237	$	1,897,262	$	42

	At December 31, 2018
	Past Due										> 90 days and Accruing
Dollars in thousands	30-59 days		60-89 days		> 90 days		Total		Current
Commercial	$	254	$	51	$	483	$	788	$	193,527	$	—
Commercial real estate
Owner-occupied	—		—		612		612		265,750		—
Non-owner occupied	156		255		1,756		2,167		562,659		—
Construction and development
Land and land development	190		4		3,174		3,368		65,465		—
Construction	—		—		—		—		24,731		—
Residential mortgage
Non-jumbo	4,120		2,235		3,753		10,108		326,869		—
Jumbo	—		—		675		675		72,924		—
Home equity	754		261		181		1,196		79,714		—
Mortgage warehouse lines	—		—		—		—		39,140		—
Consumer	502		121		125		748		31,712		36
Other	31		—		—		31		12,868		—
Total	$	6,007	$	2,927	$	10,759	$	19,693	$	1,675,359	$	36

Nonaccrual loans:  The following table presents the nonaccrual loans included in the net balance of loans at December 31, 2019 and 2018.

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Dollars in thousands	2019		2018
Commercial	$	764	$	935
Commercial real estate
Owner-occupied	4,198		1,028
Non-owner occupied	1,602		2,210
Construction and development
Land & land development	188		3,198
Construction	138		—
Residential mortgage
Non-jumbo	4,120		6,532
Jumbo	—		675
Home equity	284		299
Mortgage warehouse lines	—		—
Consumer	74		112
Other	100		—
Total	$	11,468	$	14,989

Impaired loans:  Impaired loans include the following:

▪ Loans which we risk-rate (consisting of loan relationships having aggregate balances in excess of $2.5 million, or loans exceeding $500,000 and exhibiting credit weakness) through our normal loan review procedures and which, based on current information and events, it is probable that we will be unable to collect all amounts due in accordance with the original contractual terms of the loan agreement.   Risk-rated loans with insignificant delays or insignificant short falls in the amount of payments expected to be collected are not considered to be impaired.

▪ Loans that have been modified in a troubled debt restructuring.

Both commercial and consumer loans are deemed impaired upon being contractually modified in a troubled debt restructuring. Troubled debt restructurings typically result from our loss mitigation activities and occur when we grant a concession to a borrower who is experiencing financial difficulty in order to minimize our economic loss and to avoid foreclosure or repossession of collateral.  Once restructured, a loan is generally considered impaired until its maturity, regardless of whether the borrower performs under the modified terms.  Although such a loan may be returned to accrual status if the criteria set forth in our accounting policy are met, the loan would continue to be evaluated for an asset-specific allowance for loan losses and we would continue to report the loan in the impaired loan table below.

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The following tables present loans individually evaluated for impairment at December 31, 2019 and 2018.

	December 31, 2019
Dollars in thousands	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Impaired Balance		Interest Income Recognized while impaired
Without a related allowance
Commercial	$	403	$	403	$	—	$	467	$	21
Commercial real estate
Owner-occupied	7,223		7,224		—		7,534		224
Non-owner occupied	8,514		8,515		—		9,389		495
Construction and development
Land & land development	945		945		—		1,143		65
Construction	—		—		—		—		—
Residential real estate
Non-jumbo	3,387		3,393		—		3,787		217
Jumbo	3,980		3,979		—		4,017		210
Home equity	523		523		—		523		27
Mortgage warehouse lines	—		—		—		—		—
Consumer	13		13		—		14		2
Total without a related allowance	$	24,988	$	24,995	$	—	$	26,874	$	1,261
With a related allowance
Commercial	$	4,882	$	4,882	$	51	$	4,786	$	274
Commercial real estate
Owner-occupied	3,862		3,866		409		3,893		113
Non-owner occupied	540		544		113		535		5
Construction and development
Land & land development	1,015		1,015		589		1,030		51
Construction	—		—		—		—		—
Residential real estate
Non-jumbo	1,876		1,874		173		2,112		59
Jumbo	—		—		—		—		—
Home equity	—		—		—		—		—
Mortgage warehouse lines	—		—		—		—		—
Consumer	—		—		—		—		—
Total with a related allowance	$	12,175	$	12,181	$	1,335	$	12,356	$	502
Total
Commercial	$	27,384	$	27,394	$	1,162	$	28,777	$	1,248
Residential real estate	9,766		9,769		173		10,439		513
Consumer	13		13		—		14		2
Total	$	37,163	$	37,176	$	1,335	$	39,230	$	1,763

The above table does not include PCI loans.

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	December 31, 2018
Dollars in thousands	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Impaired Balance		Interest Income Recognized while impaired
Without a related allowance
Commercial	$	1,019	$	1,253	$	—	$	321	$	16
Commercial real estate
Owner-occupied	8,600		8,605		—		7,730		318
Non-owner occupied	9,666		9,673		—		9,753		493
Construction and development
Land & land development	4,767		4,767		—		4,947		102
Construction	—		—		—		—		—
Residential real estate
Non-jumbo	3,279		3,284		—		3,401		180
Jumbo	4,132		4,130		—		3,517		166
Home equity	523		523		—		523		30
Mortgage warehouse lines	—		—		—		—		—
Consumer	9		10		—		13		1
Total without a related allowance	$	31,995	$	32,245	$	—	$	30,205	$	1,306
With a related allowance
Commercial	$	3,343	$	3,342	$	682	$	705	$	39
Commercial real estate
Owner-occupied	2,969		2,969		462		2,397		117
Non-owner occupied	189		191		9		226		16
Construction and development
Land & land development	1,057		1,057		298		1,073		56
Construction	—		—		—		—		—
Residential real estate
Non-jumbo	2,982		2,981		585		2,539		98
Jumbo	821		822		106		827		48
Home equity	—		—		—		—		—
Mortgage warehouse lines	—		—		—		—		—
Consumer	—		—		—		—		—
Total with a related allowance	$	11,361	$	11,362	$	2,142	$	7,767	$	374
Total
Commercial	$	31,610	$	31,857	$	1,451	$	27,152	$	1,157
Residential real estate	11,737		11,740		691		10,807		522
Consumer	9		10		—		13		1
Total	$	43,356	$	43,607	$	2,142	$	37,972	$	1,680

The above table does not include PCI loans.

The average recorded investment of impaired loans during 2017 was $35.6 million and $2.2 million interest income was recognized on those loans while impaired.

A modification of a loan is considered a troubled debt restructuring (“TDR”) when a borrower is experiencing financial difficulty and the modification constitutes a concession that we would not otherwise consider. This may include a transfer of real estate or other assets from the borrower, a modification of loan terms, or a combination of both.  A loan continues to be classified as a TDR for the life of the loan.  Included in impaired loans are TDRs of $25.7 million, of which $22.9 million were current with respect to restructured contractual payments at December 31, 2019 and $27 million, of which $26.6 million were current with respect to restructured contractual payments at December 31, 2018.  There were no commitments to lend additional funds under these restructurings at either balance sheet date.

The following table presents by class the TDRs that were restructured during 2019 and 2018.  Generally, the modifications were extensions of term, modifying the payment terms from principal and interest to interest only for an extended period, or reduction in interest rate.  All TDRs are evaluated individually for allowance for loan loss purposes.

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	2019					2018
Dollars in thousands	Number of Modifications	Pre-modification Recorded Investment		Post-modification Recorded Investment		Number of Modifications	Pre-modification Recorded Investment		Post-modification Recorded Investment
Commercial	—	$	—	$	—	2	$	157	$	157
Commercial real estate
Owner-occupied	1	325		325		—	—		—
Non-owner occupied	4	324		324		2	183		183
Residential real estate
Non-jumbo	7	410		410		8	899		899
Consumer	1	15		15		—	—		—
Total	13	$	1,074	$	1,074	12	$	1,239	$	1,239

The following table presents defaults during the stated period of TDRs that were restructured during the past twelve months.  For purposes of these tables, a default is considered as either the loan was past due 30 days or more at any time during the period, or the loan was fully or partially charged off during the period. 

	2019			2018
Dollars in thousands	Number of Defaults	Recorded Investment at Default Date		Number of Defaults	Recorded Investment at Default Date
Commercial	—	$	—	2	$	157
Commercial real estate
Non-owner occupied	2	178		—	—
Residential real estate
Non-jumbo	3	174		7	847
Total	5	$	352	9	$	1,004

The following table details the activity regarding TDRs by loan type during 2019 and the related allowance on TDRs.

2019
	Construction & Land Development								Commercial Real Estate						Residential Real Estate
Dollars in thousands	Land & Land Develop- ment			Construc- tion		Commer- cial			Owner Occupied			Non- Owner Occupied			Non- jumbo			Jumbo			Home Equity		Mortgage Warehouse Lines		Con- sumer			Other		Total
Troubled debt restructurings
Balance January 1, 2019	$	2,654		$	—	$	273		$	9,365		$	5,404		$	4,490		$	4,278		$	523	$	—	$	10		$	—	$	26,997
Additions	—			—		—			325			324			410			—			—		—		15			—		1,074
Charge-offs	—			—		—			—			—			—			—			—		—		—			—		—
Net (paydowns) advances	(694		)	—		(71		)	(204		)	(203		)	(287		)	(924		)	—		—		(12		)	—		(2,395		)
Transfer into foreclosed properties	—			—		—			—			—			—			—			—		—		—			—		—
Refinance out of TDR status	—			—		—			—			—			—			—			—		—		—			—		—
Balance, December 31, 2019	$	1,960		$	—	$	202		$	9,486		$	5,525		$	4,613		$	3,354		$	523	$	—	$	13		$	—	$	25,676
Allowance related to troubled debt restructurings	$	589		$	—	$	4		$	245		$	—		$	163		$	—		$	—	$	—	$	—		$	—	$	1,001

We categorize loans into risk categories based on relevant information about the ability of borrowers to service their debt such as current financial information, historical payment experience, credit documentation, public information and current economic trends, among other factors. We analyze loans individually by classifying the loans as to credit risk.  We internally grade all commercial loans at the time of loan origination. In addition, we perform an annual loan review on all non-homogenous commercial loan relationships with an aggregate exposure of $2.5 million, at which time these loans are re-graded. We use the following definitions for our risk grades:

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Pass: Loans graded as Pass are loans to borrowers of acceptable credit quality and risk. They are higher quality loans that do not fit any of the other categories described below.

OLEM (Special Mention):  Commercial loans categorized as OLEM are potentially weak. The credit risk may be relatively minor yet represent a risk given certain specific circumstances. If the potential weaknesses are not monitored or mitigated, the asset may weaken or inadequately protect our position in the future.

Substandard:   Commercial loans categorized as Substandard are inadequately protected by the borrower’s ability to repay, equity and/or the collateral pledged to secure the loan. These loans have identified weaknesses that could hinder normal repayment or collection of the debt. These loans are characterized by the distinct possibility that we will sustain some loss if the identified weaknesses are not mitigated.

Doubtful:  Commercial loans categorized as Doubtful have all the weaknesses inherent in those loans classified as Substandard, with the added elements that the full collection of the loan is improbable and the possibility of loss is high.

Loss:  Loans classified as loss are considered to be non-collectible and of such little value that their continuance as a bankable asset is not warranted. This does not mean that the loan has absolutely no recovery value, but rather it is neither practical nor desirable to defer writing off the loan, even though partial recovery may be obtained in the future.

The following table presents the recorded investment in construction and development, commercial and commercial real estate loans which are generally evaluated based upon our internal risk ratings defined above.

Loan Risk Profile by Internal Risk Rating
	Construction and Development												Commercial Real Estate
	Land and Land Development				Construction				Commercial				Owner Occupied				Non-Owner Occupied				Mortgage Warehouse Lines
Dollars in thousands	2019		2018		2019		2018		2019		2018		2019		2018		2019		2018		2019		2018
Pass	$	82,317	$	63,743	$	37,385	$	24,589	$	200,313	$	182,651	$	269,357	$	259,360	$	622,857	$	556,609	$	126,237	$	39,140
OLEM (Special Mention)	454		472		138		142		1,052		6,748		2,184		1,864		1,876		1,554		—		—
Substandard	1,341		4,618		—		—		5,773		4,916		4,677		5,138		4,473		6,663		—		—
Doubtful	—		—		—		—		—		—		—		—		—		—		—		—
Loss	—		—		—		—		—		—		—		—		—		—		—		—
Total	$	84,112	$	68,833	$	37,523	$	24,731	$	207,138	$	194,315	$	276,218	$	266,362	$	629,206	$	564,826	$	126,237	$	39,140

The following table presents the recorded investment in consumer, residential real estate and home equity loans, which are generally evaluated based on the aging status of the loans, which was previously presented, and payment activity.

	Performing				Nonperforming
Dollars in thousands	2019		2018		2019		2018
Residential real estate
Non-jumbo	$	350,843	$	330,445	$	4,120	$	6,532
Jumbo	70,947		72,924		—		675
Home Equity	76,284		80,611		284		299
Consumer	36,354		32,312		116		148
Other	14,017		12,899		100		—
Total	$	548,445	$	529,191	$	4,620	$	7,654

Industry concentrations:  At December 31, 2019 and 2018, we had no concentrations of loans to any single industry in excess of 10% of total loans.

Loans to related parties:  We have had, and may be expected to have in the future, banking transactions in the ordinary course of business with our directors, principal officers, their immediate families and affiliated companies in which they are principal shareholders (commonly referred to as related parties).  These transactions have been, in our opinion, on the same terms, including interest rates and collateral, as those prevailing at the time for comparable transactions with others.

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The following presents the activity with respect to related party loans aggregating $60,000 or more to any one related party (other changes represent additions to and changes in director and executive officer status):

Dollars in thousands	2019			2018
Balance, beginning	$	43,899		$	45,698
Additions	37,947			6,750
Amounts collected	(30,203		)	(6,992		)
Other changes, net	(351		)	(1,557		)
Balance, ending	$	51,292		$	43,899

NOTE 8.  ALLOWANCE FOR LOAN LOSSES

The allowance for loan losses is maintained at a level considered adequate to provide for our estimate of probable credit losses inherent in the loan portfolio.  The allowance is increased by provisions charged to operating expense and reduced by net charge-offs.  Loans are charged against the allowance for loan losses when we believe that collectability is unlikely.  While we use the best information available to make our evaluation, future adjustments may be necessary if there are significant changes in conditions.

The allowance is comprised of three distinct components:  (1) specific allowances related to loans individually evaluated, (2) quantitative allowances related to loans collectively evaluated and (3) qualitative allowances related to loans collectively evaluated.  A summary of the methodology we employ on a quarterly basis with respect to each of these components in order to evaluate the overall adequacy of our allowance for loan losses is as follows.

Specific Allowance for Loans Individually Evaluated

First, we identify loan relationships having aggregate balances in excess of $500,000 and that may also have credit weaknesses.  Such loan relationships are identified primarily through our analysis of internal loan evaluations, past due loan reports and loans adversely classified internally or by regulatory authorities.  Each loan so identified is then individually evaluated to determine whether it is impaired – that is, based on current information and events, it is probable that we will be unable to collect all amounts due in accordance with the contractual terms of the underlying loan agreement.  Substantially all of our impaired loans historically have been collateral dependent, meaning repayment of the loan is expected or is considered to be provided solely from the sale of the loan’s underlying collateral.  For such loans, we measure impairment based on the fair value of the loan’s collateral, which is generally determined utilizing current appraisals.  A specific allowance is established in an amount equal to the excess, if any, of the recorded investment in each impaired loan over the fair value of its underlying collateral, less estimated costs to sell. Our policy is to re-evaluate the fair value of collateral dependent loans at least every twelve months unless there is a known deterioration in the collateral’s value, in which case a new appraisal is obtained.

PCI loans are individually evaluated.  The evaluation of the PCI loans requires continued quarterly assessment of key assumptions and estimates similar to the initial fair value estimate, including changes in the severity of loss, timing and speed of payments, collateral value changes, expected cash flows and other relevant factors.  The quarterly assessment is compared to the recorded investment and a determination is made if an adjustment to the allowance for loan loss is deemed necessary.

Quantitative Allowance for Loans Collectively Evaluated

Second, we stratify the loan portfolio into eleven loan pools.  Quantitative allowances relative to each loan pool are established as follows: we calculate a historical loss rate utilizing the net loan charge-offs experienced for the most recent twelve quarters for each loan pool. This historical loss rate is applied to the aggregate recorded investment as of the financial statement date for each pool. We believe that the most recent twelve quarter historical loss rate to be the most indicative of the losses that can be expected. Purchased performing loans are collectively evaluated as their own separate category within each loan pool. The historical loss rate, as calculated above for each pool, is applied to the principal balance of purchased performing loans by pool. The calculated allowance is then compared to the estimated fair value discount remaining to determine if the discount remains adequate. If the discount remaining is not adequate, additional allowances will be recognized.  

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Qualitative Allowance for Loans Collectively Evaluated

Third, we consider the necessity to adjust our average historical net loan charge-off rates relative to each of the above eleven loan pools for potential risks factors that could result in actual losses deviating from prior loss experience.  For example, if we observe a significant increase in delinquencies within the conventional mortgage loan pool above historical trends, an additional allocation to the average historical loan charge-off rate is applied.  Such qualitative risk factors considered are:  (1) levels of and trends in delinquencies and impaired loans, (2) levels of and trends in charge-offs and recoveries, (3) trends in volume and term of loans, (4) effects of any changes in risk selection and underwriting standards and other changes in lending policies, procedures and practice, (5) experience, ability and depth of lending management and other relevant staff, (6) national and local economic trends and conditions, (7) industry conditions and (8) effects of changes in credit concentrations.

An analysis of the allowance for loan losses for the years ended December 31, 2019, 2018 and 2017 is as follows:

Dollars in thousands	2019		2018		2017
Balance, beginning of year	$	13,047	$	12,565	$	11,674
Losses:
Commercial	281		248		23
Commercial real estate
Owner occupied	2		38		5
Non-owner occupied	170		619		65
Construction and development
Land and land development	2		259		3
Construction	—		—		33
Residential real estate
Non-jumbo	979		887		359
Jumbo	—		—		2
Home equity	24		26		158
Mortgage warehouse lines	—		—		—
Consumer	285		244		389
Other	360		282		251
Total	2,103		2,603		1,288
Recoveries:
Commercial	17		16		124
Commercial real estate
Owner occupied	21		23		89
Non-owner occupied	1		—		91
Construction and development
Land and land development	108		270		278
Construction	—		—		—
Real estate - mortgage
Non-jumbo	125		228		134
Jumbo	—		25		—
Home equity	19		10		30
Mortgage warehouse lines	—		—		—
Consumer	168		141		82
Other	121		122		101
Total	580		835		929
Net losses	1,523		1,768		359
Provision for loan losses	1,550		2,250		1,250
Balance, end of year	$	13,074	$	13,047	$	12,565

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The following tables present the activity in the allowance for loan losses, balance in allowance for loan losses and recorded investment in loans by portfolio segment and based on impairment method as of December 31, 2019 and 2018.

	For the Year Ended December 31, 2019												At December 31, 2019								At December 31, 2019
	Allowance for loan losses												Allowance related to:								Loans
Dollars in thousands	Beginning  Balance		Charge- offs			Recoveries		Provision			Ending Balance		Loans individua- lly evaluated  for impairm- ent		Loans collective- ly evaluated for impairm- ent		Loans acquired  with deteriora- ted credit quality (PCI)		Total		Loans individua- lly evaluated for impairm- ent		Loans collectively evaluated for impairment		Loans acquired with deteriora- ted credit quality (PCI)		Total
Commercial	$	1,705	$	(281	)	$	17	$	(295	)	$	1,146	$	51	$	1,095	$	—	$	1,146	$	5,285	$	201,853	$	—	$	207,138
Commercial real estate
Owner occupied	2,214		(2		)	21		467			2,700		409		2,291		—		2,700		11,085		265,133		—		276,218
Non-owner occupied	5,742		(170		)	1		366			5,939		113		5,821		5		5,939		9,054		619,499		653		629,206
Construction and development
Land and land development	339		(2		)	108		155			600		589		11		—		600		1,960		82,152		—		84,112
Construction	64		—			—		178			242		—		242		—		242		—		37,523		—		37,523
Residential real estate
Non-jumbo	2,090		(979		)	125		576			1,812		173		1,624		15		1,812		5,263		348,453		1,247		354,963
Jumbo	379		—			—		(368		)	11		—		11		—		11		3,980		66,023		944		70,947
Home equity	167		(24		)	19		(24		)	138		—		138		—		138		523		76,045		—		76,568
Mortgage warehouse lines	—		—			—		—			—		—		—		—		—		—		126,237		—		126,237
Consumer	79		(285		)	168		173			135		—		135		—		135		13		36,457		—		36,470
Other	268		(360		)	121		322			351		—		351		—		351		—		14,117		—		14,117
Total	$	13,047	$	(2,103	)	$	580	$	1,550		$	13,074	$	1,335	$	11,719	$	20	$	13,074	$	37,163	$	1,873,492	$	2,844	$	1,913,499

	For the Year Ended December 31, 2018												At December 31, 2018								At December 31, 2018
	Allowance for loan losses												Allowance related to:								Loans
Dollars in thousands	Beginning  Balance		Charge- offs			Recoveries		Provision			Ending  Balance		Loans individua- lly evaluated  for impairm- ent		Loans collective- ly evaluated for impairm- ent		Loans acquired  with deteriora- ted credit quality (PCI)		Total		Loans individua- lly evaluated for impairm- ent		Loans collectively evaluated for impairment		Loans acquired with deteriora- ted credit quality (PCI)		Total
Commercial	$	1,303	$	(248	)	$	16	$	634		$	1,705	$	682	$	1,023	$	—	$	1,705	$	4,362	$	189,953	$	—	$	194,315
Commercial real    estate
Owner occupied	2,424		(38		)	23		(195		)	2,214		462		1,752		—		2,214		11,569		254,793		—		266,362
Non-owner   occupied	4,950		(619		)	—		1,411			5,742		9		5,729		4		5,742		9,855		553,809		1,162		564,826
Construction and development
Land and land development	641		(259		)	270		(313		)	339		298		41		—		339		5,824		63,009		—		68,833
Construction	153		—			—		(89		)	64		—		64		—		64		—		24,731		—		24,731
Residential real estate
Non-jumbo	1,911		(887		)	228		838			2,090		585		1,495		10		2,090		6,261		329,342		1,374		336,977
Jumbo	72		—			25		282			379		106		273		—		379		4,953		67,671		975		73,599
Home equity	638		(26		)	10		(455		)	167		—		167		—		167		523		80,387		—		80,910
Mortgage warehouse    lines	—		—			—		—			—		—		—		—		—		—		39,140		—		39,140
Consumer	210		(244		)	141		(28		)	79		—		79		—		79		9		32,451		—		32,460
Other	263		(282		)	122		165			268		—		268		—		268		—		12,899		—		12,899
Total	$	12,565	$	(2,603	)	$	835	$	2,250		$	13,047	$	2,142	$	10,891	$	14	$	13,047	$	43,356	$	1,648,185	$	3,511	$	1,695,052

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NOTE 9.  PROPERTY HELD FOR SALE

Property held for sale consists of premises held for sale and real estate acquired through foreclosure on loans secured by such real estate.  Qualifying premises are transferred to property held for sale at estimated fair value less anticipated selling costs, establishing a new cost basis.  Foreclosed properties are recorded at the lower of the investment in the real estate or estimated fair value less anticipated selling costs based upon the property’s appraised value at the date of foreclosure, with any difference between the fair value of foreclosed property and the carrying value of the related loan charged to the allowance for loan losses.  We perform periodic valuations of property held for sale subsequent to transfer.  Changes in value subsequent to transfer are recorded in noninterest expense.  Gains or losses resulting from the sale of property held for sale is recognized on the date of sale and is included in noninterest expense.  Depreciation is not recorded on property held for sale.  Expenses incurred in connection with operating foreclosed properties are charged to noninterest expense.

The following table presents the activity of property held for sale during 2019, 2018 and 2017.

Dollars in thousands	2019			2018			2017
Beginning balance	$	21,432		$	21,470		$	24,504
Acquisitions	4,549			1,804			363
Acquisition of FCB	—			—			2,377
Capitalized improvements	512			1,304			316
Dispositions	(5,142		)	(2,370		)	(5,205		)
Valuation adjustments	(2,075		)	(776		)	(885		)
Balance at year end	$	19,276		$	21,432		$	21,470

At December 31, 2019, our foreclosed properties of consumer residential real estate totaled $1.6 million.

NOTE 10.  PREMISES AND EQUIPMENT

Land is carried at cost, while premises and equipment are stated at cost less accumulated depreciation.  Depreciation is computed primarily by the straight-line method for premises and equipment over the estimated useful lives of the assets.  The estimated useful lives employed are on average 30 years for premises and 3 to 10 years for furniture and equipment.  Repairs and maintenance expenditures are charged to operating expenses as incurred.  Major improvements and additions to premises and equipment, including construction period interest costs, are capitalized.  No interest was capitalized during 2019, 2018, or 2017.

The major categories of premises and equipment and accumulated depreciation at December 31, 2019 and 2018 are summarized as follows:

Dollars in thousands	2019		2018
Land	$	10,645	$	10,415
Buildings and improvements	34,885		32,283
Furniture and equipment	25,616		19,783
	71,146		62,481
Less accumulated depreciation	26,978		24,928
Total premises and equipment, net	$	44,168	$	37,553

Depreciation expense for the years ended December 31, 2019, 2018 and 2017 approximated $2.61 million, $2.17 million and $1.89 million, respectively.

NOTE 11.  GOODWILL AND OTHER INTANGIBLE ASSETS

Goodwill and certain other intangible assets with indefinite useful lives are not amortized into net income over an estimated life, but rather are tested at least annually for impairment.  Intangible assets determined to have definite useful lives are amortized over their estimated useful lives and also are subject to impairment testing.

In accordance with ASU No. 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment, during third quarter 2019, we performed the qualitative assessment of goodwill and determined that the fair value was more likely than not greater than its carrying value.  In performing the qualitative assessment, we considered certain events and circumstances such as macroeconomic conditions, industry and market considerations, overall financial performance and cost factors when

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evaluating whether it is more likely than not that the fair value is less than the carrying value.  No indicators of impairment were noted as of September 30, 2019.

The following table presents our goodwill activity by reporting unit for 2019.

	Goodwill Activity
Dollars in thousands	Community Banking		Insurance Services			Total
Balance, January 1, 2019	$	10,562	$	4,710		$	15,272
Reclassifications to goodwill	—		—			—
Acquired goodwill, net	2,096		—			2,096
Goodwill reduction in conjunction with sale of Summit Insurance Services, LLC	—		(4,710		)	(4,710		)
Balance, December 31, 2019	$	12,658	$	—		$	12,658

In addition, at December 31, 2019 and December 31, 2018, we had $10.36 million and $10.57 million in unamortized identified intangible assets comprised of $10.30 million core deposit intangible at December 31, 2019 and $9.80 million core deposit intangible and $700,000 customer intangible at December 31, 2018.

	Other Intangible Assets
	December 31, 2019						December 31, 2018
Dollars in thousands	Community Banking		Insurance Services		Total		Community Banking		Insurances Services		Total
Identified intangible assets
Gross carrying amount	$	14,727	$	—	$	14,727	$	12,598	$	3,000	$	15,598
Less: accumulated amortization	4,363		—		4,363		2,728		2,300		5,028
Net carrying amount	$	10,364	$	—	$	10,364	$	9,870	$	700	$	10,570

Amortization relative to our identified intangible assets is as follows:

	Core Deposit		Customer
Dollars in thousands	Intangible		Intangible
Actual:
2017	$	1,210	$	200
2018	1,471		200
2019	1,634		67
Expected:
2020	1,513		—
2021	1,393		—
2022	1,273		—
2023	1,152		—
2024	1,032		—
Thereafter	3,930		—

NOTE 12.  DEPOSITS

The following is a summary of interest bearing deposits by type as of December 31, 2019 and 2018:

Dollars in thousands	2019		2018
Demand deposits, interest bearing	$	630,351	$	523,257
Savings deposits	418,096		284,173
Time deposits	604,237		605,276
Total	$	1,652,684	$	1,412,706

Included in time deposits are deposits acquired through a third party (“brokered deposits”) totaling $150.6 million and $220.5 million at December 31, 2019 and 2018, respectively.

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A summary of the scheduled maturities for all time deposits as of December 31, 2019 is as follows:

Dollars in thousands	Amount
2020	$	336,485
2021	176,029
2022	44,678
2023	17,935
2024	10,661
Thereafter	18,449
Total	$	604,237

Time certificates of deposit in denominations of $100,000 or more totaled $387.8 million and $417.3 million at December 31, 2019 and 2018, respectively. The following is a summary of the maturity distribution of all certificates of deposit in denominations of $100,000 or more as of December 31, 2019:

Dollars in thousands	Amount		Percent
Three months or less	$	54,224	14.0	%
Three through six months	63,734		16.4	%
Six through twelve months	98,912		25.5	%
Over twelve months	170,979		44.1	%
Total	$	387,849	100.00	%

The aggregate amount of time deposits in denominations that meet or exceed the FDIC insurance limit of $250,000 totaled $198.1 million and $255.8 million at December 31, 2019 and 2018.

At December 31, 2019 and 2018, our deposits of related parties including directors, executive officers and their related interests approximated $31.2 million and $37.1 million.

NOTE 13.  BORROWED FUNDS

Our subsidiary bank is a member of the Federal Home Loan Bank (“FHLB”).  Membership in the FHLB makes available short-term and long-term advances under collateralized borrowing arrangements with each subsidiary bank.  All FHLB advances are collateralized by a blanket lien of $1.16 billion of residential mortgage loans, certain commercial loans, mortgage backed securities and securities of U. S. Government agencies and corporations.  We had $149.3 million available on a short term line of credit with the Federal Reserve Bank at December 31, 2019, which is primarily secured by a pledge of $283.0 million of our consumer loans, construction loans and commercial and industrial loan portfolios. We also had $6 million available on an unsecured line of credit with a correspondent bank.

At December 31, 2019, our subsidiary bank had additional borrowings availability of $609.3 million from the FHLB.  Short-term FHLB advances are granted for terms of 1 to 365 days and bear interest at a fixed or variable rate set at the time of the funding request.

Short-term borrowings:  At December 31, 2019, we had $155.3 million borrowing availability through credit lines and Federal funds purchased agreements.  Federal funds purchased mature the next business day.  A summary of short-term borrowings is presented below.

	2019						2018
Dollars in thousands	Short-term FHLB Advances			Federal Funds Purchased			Short-term FHLB Advances			Federal Funds Purchased
Balance at December 31	$	199,200		$	145		$	303,950		$	5,134
Average balance outstanding for the period	193,992			458			223,764			4,378
Maximum balance outstanding at any month end during period	237,400			145			303,950			7,534
Weighted average interest rate for the period	2.48		%	2.43		%	2.18		%	1.95		%
Weighted average interest rate for balances
outstanding at December 31	1.83		%	1.75		%	2.71		%	2.50		%

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Long-term borrowings:  Our long-term borrowings of $717,000 and $735,000 at December 31, 2019 and 2018, respectively, consisted of a fixed rate advance from the Federal Home Loan Bank (“FHLB”) maturing in 2026. The average interest rate paid on long-term borrowings during 2019 was 5.34% compared to 4.26% in 2018.

Subordinated debentures owed to unconsolidated subsidiary trusts:  We have three statutory business trusts that were formed for the purpose of issuing mandatorily redeemable securities (the “capital securities”) for which we are obligated to third party investors and investing the proceeds from the sale of the capital securities in our junior subordinated debentures (the “debentures”).  The debentures held by the trusts are their sole assets.  Our subordinated debentures totaled $19.6 million at December 31, 2019 and 2018.

In October 2002, we sponsored SFG Capital Trust I, in March 2004, we sponsored SFG Capital Trust II and in December 2005, we sponsored SFG Capital Trust III, of which 100% of the common equity of each trust is owned by us.  SFG Capital Trust I issued $3.5 million in capital securities and $109,000 in common securities and invested the proceeds in $3.61 million of debentures. SFG Capital Trust II issued $7.5 million in capital securities and $232,000 in common securities and invested the proceeds in $7.73 million of debentures. SFG Capital Trust III issued $8.0 million in capital securities and $248,000 in common securities and invested the proceeds in $8.25 million of debentures.  Distributions on the capital securities issued by the trusts are payable quarterly at a variable interest rate equal to 3 month LIBOR plus 345 basis points for SFG Capital Trust I, 3 month LIBOR plus 280 basis points for SFG Capital Trust II and 3 month LIBOR plus 145 basis points for SFG Capital Trust III and equals the interest rate earned on the debentures held by the trusts and is recorded as interest expense by us.  The capital securities are subject to mandatory redemption in whole or in part, upon repayment of the debentures.  We have entered into agreements which, taken collectively, fully and unconditionally guarantee the capital securities subject to the terms of the guarantee.  The debentures of each Capital Trust are redeemable by us quarterly.

The capital securities held by SFG Capital Trust I, SFG Capital Trust II and SFG Capital Trust III qualify as Tier 1 capital under Federal Reserve Board guidelines.  In accordance with these Guidelines, trust preferred securities generally are limited to 25% of Tier 1 capital elements, net of goodwill.  The amount of trust preferred securities and certain other elements in excess of the limit can be included in Tier 2 capital.

A summary of the maturities of all long-term borrowings and subordinated debentures for the next five years and thereafter is as follows:

Dollars in thousands	Long-term borrowings		Subordinated debentures owed to unconsolidated subsidiary trusts
2020	$	19	$	—
2021	19		—
2022	21		—
2023	22		—
2024	23		—
Thereafter	613		19,589
Total	$	717	$	19,589

NOTE  14.  DERIVATIVE FINANCIAL INSTRUMENTS

We use derivative instruments primarily to protect against the risk of adverse interest rate movements on the cash flows of certain assets and liabilities.  Derivative instruments represent contracts between parties that usually require little or no initial net investment and result in one party delivering cash or another type of asset to the other party based upon a notional amount and an underlying as specified in the contract.  A notional amount represents the number of units of a specific item, such as currency units.  An underlying represents a variable, such as an interest rate or price index.  The amount of cash or other asset delivered from one party to the other is determined based upon the interaction of the notional amount of the contract with the underlying.  Derivatives can also be implicit in certain contracts and commitments.

As with any financial instrument, derivative instruments have inherent risks, primarily market and credit risk.  Market risk associated with changes in interest rates is managed by establishing and monitoring limits as to the degree of risk that may be undertaken as part of our overall market risk monitoring process.  Credit risk occurs when a counterparty to a derivative contract with an unrealized gain fails to perform according to the terms of the agreement.  Credit risk is managed by monitoring the size and maturity structure of the derivative portfolio and applying uniform credit standards to all activities with credit risk.

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All derivative instruments are recorded on the balance sheet at fair value in either other assets or other liabilities.  Changes in the fair value of derivatives are recorded each period in current earnings or other comprehensive income, depending on whether a derivative is designated as part of a hedge transaction and the type of hedge transaction.

Fair value hedges – For transactions in which we are hedging changes in fair value of an asset, liability, or a firm commitment, changes in the fair value of the derivative instrument are generally offset in the income statement by changes in the hedged item’s fair value.

Cash flow hedges – For transactions in which we are hedging the variability of cash flows related to a variable-rate asset, liability, or a forecasted transaction, changes in the fair value of the derivative instrument are reported in other comprehensive income. The gains and losses on the derivative instrument, which are reported in comprehensive income, are reclassified to    earnings in the periods in which earnings are impacted by the variability of cash flows of the hedged item.

The ineffective portion of all hedges is recognized in current period earnings.

Our derivatives are governed by the terms of ISDA Master netting agreements and Credit Support Annexes. The ISDA Master agreements allow counterparties to offset trades in a gain against trades in a loss to determine net exposure and allow for the right of offset in the event of either a default or an additional termination event. Credit Support Annexes govern the terms of daily collateral posting practices. Collateral practices mitigate the potential loss impact to affected parties by requiring liquid collateral to be posted on a scheduled basis to secure the aggregate net unsecured exposure. In addition to collateral, the right of offset allows counterparties to offset net derivative values with a defaulting party against certain other contractual receivables from other obligations due to the defaulting party in determining the net termination amount.

We have entered into two forward-starting, pay-fixed/receive LIBOR interest rate swaps as follows:

• A $30 million notional interest rate swap expiring on October 18, 2020, was designated as a cash flow hedge of $30 million of variable rate Federal Home Loan Bank advances.  Under the terms of this swap we will pay a fixed rate of 2.89% and receive a variable rate equal to one month LIBOR.   

• A $40 million notional interest rate swap expiring on October 18, 2021, was designated as a cash flow hedge of $40 million of variable rate Federal Home Loan Bank advances. Under the terms of this swap we will pay a fixed rate of 2.19% and receive a variable rate equal to one month LIBOR.

Also, at December 31, 2018, we were a party to a third forward-starting, pay-fixed/receive LIBOR interest rate swap as follows:

• A $40 million notional interest rate swap that expired October 18, 2019, was designated as a cash flow hedge of $40 million of variable rate Federal Home Loan Bank advances.  Under the terms of the swap we paid a fixed rate of 2.84% and received a variable rate equal to one month LIBOR.

We have entered into two pay fixed/receive variable interest rate swaps to hedge fair value variability of two commercial fixed rate loans with the same principal, amortization, and maturity terms of the underlying loans, which are designated as fair value hedges as follows:

• Under the terms of a $9.95 million original notional interest rate swap expiring January 15, 2025, we will pay a fixed rate of 4.33% and receive a variable rate equal to one month LIBOR plus 2.4000 percent.

• Under the terms of a $11.3 million original notional interest rate swap expiring January 15, 2026, we will pay a fixed rate of 4.30% and receive a variable rate equal to one month LIBOR plus 2.18000 percent .

A summary of our derivative financial instruments as of December 31, 2019 and 2018 follows:

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	December 31, 2019
			Derivative Fair Value				Net Ineffective
Dollars in thousands	Notional Amount		Asset		Liability		Hedge Gains/(Losses)
CASH FLOW HEDGES
Pay-fixed/receive-variable interest rate swaps
Short term borrowings	$	70,000	$	—	$	679	$	—
FAIR VALUE HEDGES
Pay-fixed/receive-variable interest rate swaps
Commercial real estate loans	$	18,809	$	—	$	309	$	—

	December 31, 2018
			Derivative Fair Value				Net Ineffective
Dollars in thousands	Notional Amount		Asset		Liability		Hedge Gains/(Losses)
CASH FLOW HEDGES
Pay-fixed/receive-variable interest rate swaps
Short term borrowings	$	110,000	$	—	$	411	$	—
FAIR VALUE HEDGES
Pay-fixed/receive-variable interest rate swaps
Commercial real estate loans	$	19,399	$	555	$	—	$	—

NOTE 15.  INCOME TAXES

Income taxes, computed on the separate return basis with the benefit of filing a consolidated return being recorded at the holding company, include Federal and state income taxes and are based on pretax net income reported in the consolidated financial statements, adjusted for transactions that may never enter into the computation of income taxes payable (permanent differences).  Deferred tax assets and liabilities are determined based on the differences between the financial statement and tax basis of assets and liabilities that will result in taxable or deductible amounts in the future based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income.  Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment.  Valuation allowances are established, when deemed necessary, to reduce deferred tax assets to the amount expected to be realized.

On December 22, 2017, the Tax Cuts and Jobs Act (“TCJA”) was signed into law. Among other things, the TCJA permanently lowered the federal corporate income tax rate to 21% from the prior maximum rate of 35%, effective January 1, 2018. As a result of the reduction of the federal corporate income tax rate, ASC 740 - Income Taxes, required us to remeasure our deferred tax assets and deferred tax liabilities, including those accounted for in accumulated other comprehensive income, as of the date of TCJA’s enactment and record the effects as income tax expense in the reporting period of enactment.

We remeasured our deferred tax assets and deferred tax liabilities as of December 22, 2017, at the new federal corporate income tax rate of 21%, and recorded additional deferred federal income tax expense of $3.5 million to reduce our net deferred tax assets.

A tax position that meets a "probable recognition threshold" for the benefit of the uncertain tax position is recognized in the financial statements. A tax position that fails to meet the probable recognition threshold will result in either reduction of a current or deferred tax asset or receivable, or recording a current or deferred tax liability.  We concluded that there were no significant uncertain tax positions requiring recognition in the consolidated financial statements.  The evaluation was performed for the years ended 2016 through 2019, the tax years which remain subject to examination by major tax jurisdictions.

The components of applicable income tax expense for the years ended December 31, 2019, 2018 and 2017, are as follows:

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Dollars in thousands	2019		2018			2017
Current
Federal	$	6,676	$	6,400		$	5,092
State	938		973			496
	7,614		7,373			5,588
Deferred
Federal	88		(304		)	4,027
State	15		(45		)	49
	103		(349		)	4,076
Total	$	7,717	$	7,024		$	9,664

Reconciliation between the amount of reported income tax expense and the amount computed by multiplying the statutory income tax rates by book pretax income for the years ended December 31, 2019, 2018 and 2017 is as follows:

	2019					2018					2017
Dollars in thousands	Amount			Percent		Amount			Percent		Amount			Percent
Computed tax at applicable statutory rate	$	8,313		21		$	7,370		21		$	7,553		35
Increase (decrease) in taxes
resulting from:
Tax-exempt interest
and dividends, net	(728		)	(2	)	(1,011		)	(3	)	(1,569		)	(7	)
Non-deductible merger-related expenses	—			—		—			—		—			—
Low-income housing and rehabilitation tax credits	(177		)	—		(286		)	(1	)	(247		)	(1	)
Impact of enacted income tax rate change	—			—		—			—		3,461			16
State income taxes, net
of Federal income tax benefit	753			2		734			2		354			2
Other, net	(444		)	(1	)	217			1		112			—
Applicable income taxes	$	7,717		20		$	7,024		20		$	9,664		45

Deferred income taxes reflect the impact of "temporary differences" between amounts of assets and liabilities for financial reporting purposes and such amounts as measured for tax purposes.  Deferred tax assets and liabilities represent the future tax return consequences of temporary differences, which will either be taxable or deductible when the related assets and liabilities are recovered or settled.   

The tax effects of temporary differences, which give rise to our deferred tax assets and liabilities as of December 31, 2019 and 2018, are as follows:

Dollars in thousands	2019		2018
Deferred tax assets
Allowance for loan losses	$	3,017	$	2,921
Depreciation	29		405
Foreclosed properties	2,659		2,951
Deferred revenue	—		18
Deferred compensation	3,296		2,490
Other deferred costs and accrued expenses	534		645
Net unrealized loss on securities available for sale	—		265
Net unrealized loss on interest rate swaps	163		99
Capital loss carryforwards	—		166
Total	9,698		9,960
Deferred tax liabilities
Accretion on tax-exempt securities	62		29
Net unrealized gain on securities available for sale	994		—
Other post-retirement benefits	15		44
Purchase accounting adjustments and goodwill	2,099		2,253
Total	3,170		2,326
Net deferred tax assets	$	6,528	$	7,634

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We may from time to time be assessed interest or penalties associated with tax liabilities by major tax jurisdictions, although any such assessments are estimated to be minimal and immaterial.  To the extent we have received an assessment for interest and/or penalties; it has been classified in the consolidated statements of income as a component of other noninterest expense.

We are currently open to audit under the statute of limitations by the Internal Revenue Service for the years ended December 31, 2016 through 2018.  Tax years 2017 through 2018 remain subject to West Virginia State examination.

NOTE 16.  EMPLOYEE BENEFITS

Retirement Plans:  We have defined contribution profit-sharing plans with 401(k) provisions covering substantially all employees.  Contributions to the plans are at the discretion of the Board of Directors.  Contributions made to the plans and charged to expense were $616,000, $622,000 and $556,000 for the years ended December 31, 2019, 2018 and 2017, respectively.

Employee Stock Ownership Plan:  We have an Employee Stock Ownership Plan (“ESOP”), which enables eligible employees to acquire shares of our common stock.  The cost of the ESOP is borne by us through annual contributions to an Employee Stock Ownership Trust in amounts determined by the Board of Directors.

The expense recognized by us is based on cash contributed or committed to be contributed by us to the ESOP during the year.  Contributions to the ESOP for the years ended December 31, 2019, 2018 and 2017 were $721,000, $646,000 and $525,000 respectively.  Dividends paid by us to the ESOP are reported as a reduction of retained earnings.  The ESOP owned 527,705 shares of our common stock at December 31, 2019 and 554,158 shares of common stock at December 31, 2018, all of which were purchased at the prevailing market price. All but 66,099 unallocated shares at December 31, 2019 are considered outstanding for earnings per share computations.

The purchase of unallocated ESOP shares is shown as a reduction of shareholders' equity, similar to a purchase of treasury stock. The loan receivable from the ESOP to the Company is not reported as an asset nor is the debt of the ESOP reported as a liability on the Company's Consolidated Balance Sheets. Cash dividends on allocated shares (those credited to ESOP participants' accounts) are recorded as a reduction of shareholders' equity and distributed directly to participants' accounts.  Cash dividends on unallocated shares (those held by the ESOP not yet credited to participants' accounts) are used to pay a portion of the ESOPs debt service requirements.  

Unallocated ESOP shares will be allocated to ESOP participants ratably as the ESOP's loan is repaid. When the shares are committed to be released and become available for allocation to plan participants, the then fair value of such shares will be charged to compensation expense. 

The ESOP shares as of December 31 are as follows:

ESOP Shares	At December 31,
	2019		2018
Allocated shares	440,751		447,424
Shares committed to be released	20,855		19,780
Unallocated shares	66,099		86,954
Total ESOP shares	527,705		554,158
Market value of unallocated shares (in thousands)	$	1,791	$	1,679

Supplemental Executive Retirement Plan:  We have certain non-qualified Supplemental Executive Retirement Plans (“SERP”) with certain senior officers, which provide participating officers with an income benefit payable at retirement age or death.  The liabilities accrued for the SERP’s at December 31, 2019 and 2018 were $6.7 million and $6.1 million, respectively, which are included in other liabilities.  Included in salaries, commissions and employee benefits was $712,000, $669,000 and $707,000 expense related to these SERPS for the years December 31, 2019, 2018 and 2017, respectively.

Share-Based Compensation:  The 2014 Long-Term Incentive Plan (“2014 LTIP”) was adopted by our shareholders in May 2014 to enhance the ability of the Company to attract and retain exceptionally qualified individuals to serve as key employees. The LTIP provides for the issuance of up to 500,000 shares of common stock, in the form of equity awards including stock options, restricted stock, restricted stock units ("RSUs"), stock appreciation rights ("SARs"), performance units, other share-based awards or any combination thereof, to our key employees.

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Stock options awarded under the 2009 Officer Stock Option Plan and the 1998 Officer Stock Option Plan (collectively, the “Plans”) were not altered by the 2014 LTIP and remain subject to the terms of the Plans.  However, under the terms of the 2014 LTIP, all shares of common stock remaining issuable under the Plans at the time the 2014 LTIP was adopted ceased to be available for future issuance.

Under the 2014 LTIP and the Plans, stock options, SARs and RSUs have generally been granted with an exercise price equal to the fair value of Summit's common stock on the grant date. We periodically grant share based compensation to individual employees.

During first quarter 2019, we granted 28,306 SARs with a $9.74 grant date fair value per SAR that become exercisable ratably over seven years (14.3% per year) and expire ten years after the grant date. Also during first quarter 2019, we granted 109,819 SARs with a $8.41 grant date fair value per SAR that become exercisable ratably over five years (20% per year) and expire ten years after the grant date. There were no grants of stock options or SARs in 2018.

The fair value of our employee stock options and SARs granted under the Plans is estimated at the date of grant using the Black-Scholes option-pricing model. This model requires the input of highly subjective assumptions, changes to which can materially affect the fair value estimate. Additionally, there may be other factors that would otherwise have a significant effect on the value of employee stock options and SARs granted but are not considered by the model. Because our employee stock options and SARs have characteristics significantly different from those of traded options and because changes in the subjective input assumptions can materially affect the fair value estimate, in management’s opinion, the existing models do not necessarily provide a reliable single measure of the fair value of its employee stock options and SARs at the time of grant. The assumptions used to value SARs granted in 2019 are as follows:

	2019 grant with 7 year expiration		2019 grant with 5 year expiration
Risk-free interest rate	2.51	%	2.43	%
Expected dividend yield	2.30	%	2.30	%
Expected common stock volatility	40.84	%	35.71	%
Expected life	7 years		5.5 years

A summary of SAR and option activity during 2017, 2018 and 2019 is as follows:

					Weighted Average
Dollars in thousands, except per share amounts	Options / SARs		Aggregate Intrinsic Value		Remaining Contractual Term (Yrs.)	Exercise Price
Outstanding, December 31, 2016	217,857					$	13.56
Granted	87,615					26.01
Exercised	(51,781	)				13.62
Forfeited	—					—
Expired	(3,400	)				24.97
Outstanding, December 31, 2017	250,291					$	17.75
Granted	—					—
Exercised	(6,800	)				17.79
Forfeited	(3,200	)				25.50
Expired	(8,200	)				25.54
Outstanding, December 31, 2018	232,091					$	17.36
Granted	138,125					23.94
Exercised	(31,613	)				11.83
Forfeited	—					—
Expired	(7,900	)				25.83
Outstanding, December 31, 2019	330,703		$	2,200	7.33	$	20.44
Exercisable Options/SARs:
December 31, 2019	104,889		$	1,203	5.74	$	15.62
December 31, 2018	95,924		583		6.04	$	14.82
December 31, 2017	62,646		687		4.92	$	15.35

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The total intrinsic value of options and SARs exercised in 2019, 2018 and 2017 was $442,000, $24,000 and $694,000, respectively. The total fair value of options and SARs vested during 2019, 2018 and 2017 was $396,000, $396,000 and $200,000, respectively.

During 2019, we granted 2,892 RSUs which will vest ratably over three years. Grants of RSUs include time-based vesting conditions that generally vest ratably over a period of three to five years. A summary of our RSU activity and related information is as follows.

Dollars in thousands, except per share amounts	RSUs	Weighted Average Grant Date Fair Value
Nonvested, December 31, 2018	—	—
Granted	2,892	25.93
Exercised	—	—
Forfeited	—	—
Vested	—	—
Nonvested, December 31, 2019	2,892	25.93

Total stock compensation expense for all share-based arrangements totaled $590,000, $391,000 and $385,000 for the years ended December 31, 2019, 2018 and 2017, respectively, and the related income tax benefits recognized in 2019, 2018 and 2017 were $142,000, $94,000 and $142,000 respectively. We recognize compensation expense based on the estimated number of stock awards expected to actually vest, exclusive of the awards expected to be forfeited. At December 31, 2019, our total unrecognized compensation expense related to all nonvested awards not yet recognized totaled $1.47 million and is expected to be recognized over the next 1.82 years.

NOTE 17.  COMMITMENTS AND CONTINGENCIES

Off-Balance Sheet Arrangements

We are a party to certain financial instruments with off-balance-sheet risk in the normal course of business to meet the financing needs of our customers.  These instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the statement of financial position.  The contract amounts of these instruments reflect the extent of involvement that we have in this class of financial instruments.

Many of our lending relationships contain both funded and unfunded elements.  The funded portion is reflected on our balance sheet.  The unfunded portion of these commitments is not recorded on our balance sheet until a draw is made under the loan facility.  Since many of the commitments to extend credit may expire without being drawn upon, the total commitment amounts do not necessarily represent future cash flow requirements.

A summary of the total unfunded, or off-balance sheet, credit extension commitments follows:

Dollars in thousands	December 31, 2019		December 31, 2018
Commitments to extend credit:
Revolving home equity and credit card lines	$	69,200	$	69,893
Construction loans	119,456		85,392
Other loans	225,637		161,619
Standby letters of credit	12,078		6,366
Total	$	426,371	$	323,270

Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract.  Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee.  We evaluate each customer's credit worthiness on a case-by-case basis.  The amount of collateral obtained, if we deem necessary upon extension of credit, is based on our credit evaluation.  Collateral held varies but may include accounts receivable, inventory, equipment or real estate.

Standby letters of credit are conditional commitments issued to guarantee the performance of a customer to a third party.  Standby letters of credit generally are contingent upon the failure of the customer to perform according to the terms of the underlying contract with the third party and generally are of a term of no greater than one year.

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Our exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit is represented by the contractual amount of those instruments.  We use the same credit policies in making commitments and conditional obligations as we do for on-balance sheet instruments.

Employment Agreements

We have various employment agreements with our executive officers and other key employees.  These agreements contain change in control provisions that would entitle the officers to receive compensation in the event there is a change in control in the Company (as defined) and a termination of their employment without cause (as defined).

Legal Contingencies

On April 24, 2017, Summit entered into a Settlement and Release Agreement (the “Settlement Agreement”) with the Residential Funding Corporation ("RFC") and paid $9.9 million to fully resolve all claims by RFC and its successor, and to avoid the further costs, disruption, and distraction of defending the RFC lawsuits.  Summit recorded a charge to noninterest expense in its consolidated statement of income for the year December 31, 2017 to recognize this settlement.  

We are not a party to any other litigation except for matters that arise in the normal course of business.  While it is impossible to ascertain the ultimate resolution or range of financial liability, if any, with respect to these contingent matters, in the opinion of management, the outcome of these matters will not have a significant adverse effect on the consolidated financial statements.

NOTE 18.  REGULATORY MATTERS

The primary source of funds for our dividends paid to our shareholders is dividends received from our subsidiaries.  Dividends paid by the subsidiary bank are subject to restrictions by banking law and regulations and require approval by the bank’s regulatory agency if dividends declared in any year exceed the bank’s current year's net income, as defined, plus its retained net profits of the two preceding years.  During 2020, the Bank will have $41.6 million plus net income for the interim periods through the date of declaration, available for dividends for distribution to us.  

Our subsidiary bank is required to maintain reserve balances with the Federal Reserve Bank.  The required reserve balance was $1,992,000 at December 31, 2019.

Our bank subsidiary, Summit Community Bank, Inc. (“Summit Community”), is subject to various regulatory capital requirements administered by the banking regulatory agencies. Under the capital adequacy guidelines and the regulatory framework for prompt corrective action, Summit Community must meet specific capital guidelines that involve quantitative measures of its assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting practices.  Our bank subsidiary’s capital amounts and classifications are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. Quantitative measures established by regulation to ensure capital adequacy require Summit Community to maintain minimum amounts and ratios of Common Equity Tier 1("CET1"), Total capital and Tier I capital (as defined in the regulations) to risk-weighted assets (as defined), and of Tier I capital (as defined) to average assets (as defined).  We believe, as of December 31, 2019, that our bank subsidiary met all capital adequacy requirements to which they were subject.

The most recent notifications from the banking regulatory agencies categorized Summit Community as well capitalized under the regulatory framework for prompt corrective action.  To be categorized as well capitalized, Summit Community must maintain minimum CET1, Total risk-based, Tier I risk-based, and Tier I leverage ratios as set forth in the table below.

In December 2018, the federal bank regulatory agencies approved a final rule modifying their regulatory capital rules to provide an option to phase-in over a period of three years the day-one regulatory capital effects of the implementation of ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326) - Measurement of Credit Losses on Financial Instruments. We intend to elect to this optional phase-in period upon adoption of the ASU effective January 1, 2020. 

The following tables present Summit's, as well as Summit Community's, actual and required minimum regulatory capital amounts and ratios as of December 31, 2019 and December 31, 2018. Capital levels required to be considered well capitalized are based upon prompt corrective action regulations, as amended.

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	Actual				Minimum Required Capital - Basel III Fully Phased-in			Minimum Required To Be Well Capitalized
Dollars in thousands	Amount		Ratio		Amount	Ratio		Amount	Ratio
As of December 31, 2019
CET1 (to risk weighted assets)
Summit	$	224,679	11.1	%	N/A	N/A		N/A	N/A
Summit Community	244,045		12.1	%	141,183	7.0	%	131,099	6.5	%
Tier I Capital (to risk weighted assets)
Summit	243,679		12.1	%	N/A	N/A		N/A	N/A
Summit Community	244,045		12.1	%	171,437	8.5	%	161,352	8.0	%
Total Capital (to risk weighted assets)
Summit	256,753		12.7	%	N/A	N/A		N/A	N/A
Summit Community	257,119		12.7	%	212,579	10.5	%	202,456	10.0	%
Tier I Capital (to average assets)
Summit	243,679		10.5	%	N/A	N/A		N/A	N/A
Summit Community	244,045		10.6	%	92,092	4.0	%	115,116	5.0	%
As of December 31, 2018
CET1 (to risk weighted assets)
Summit	197,551		11.1	%	N/A	N/A		N/A	N/A
Summit Community	213,930		12.0	%	124,793	7.0	%	115,879	6.5	%
Tier I Capital (to risk weighted assets)
Summit	216,551		12.2	%	N/A	N/A		N/A	N/A
Summit Community	213,930		12.0	%	151,534	8.5	%	142,620	8.0	%
Total Capital (to risk weighted assets)
Summit	229,598		12.9	%	N/A	N/A		N/A	N/A
Summit Community	226,977		12.8	%	186,192	10.5	%	177,326	10.0	%
Tier I Capital (to average assets)
Summit	216,551		10.1	%	N/A	N/A		N/A	N/A
Summit Community	213,930		10.0	%	85,572	4.0	%	106,965	5.0	%

NOTE 19.  EARNINGS PER SHARE

The computations of basic and diluted earnings per share follow:

	For the Year Ended December 31,
	2019					2018					2017
			Common					Common					Common
Dollars in thousands,	Income		Shares	Per		Income		Shares	Per		Income		Shares	Per
except per share amounts	(Numerator)		(Denominator)	Share		(Numerator)		(Denominator)	Share		(Numerator)		(Denominator)	Share
Net income	$	31,866				$	28,072				$	11,915
Basic EPS	$	31,866	12,516,474	$	2.55	$	28,072	12,364,468	$	2.27	$	11,915	11,918,390	$	1.00
Effect of dilutive securities:
Stock options			4,935					7,071					11,338
SARs			53,737					53,034					19,517
RSUs			—					—					—
Diluted EPS	$	31,866	12,575,145	$	2.53	$	28,072	12,424,573	$	2.26	$	11,915	11,949,245	$	1.00

Stock option and SAR grants are disregarded in this computation if they are determined to be anti-dilutive.  At December 31, 2019, our anti-dilutive SARs totaled 222,740 and all outstanding stock options were dilutive. Our anti-dilutive stock options were 7,700 and anti-dilutive SARs totaled 87,615 at December 31, 2018. All outstanding stock options and SARs were dilutive at December 31, 2017.

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NOTE 20. ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

The following are the changes in accumulated other comprehensive income (loss) by component, net of tax, for the years ended December 31, 2019 and 2018.

				December 31, 2019
Dollars in thousands	Gains and Losses on Pension Plan			Gains on Other Post-Retirement Benefits			Gains and Losses on Cash Flow Hedges			Unrealized Gains and Losses on Available-for-Sale Securities			Total
Beginning balance	$	—		$	139		$	(314	)	$	(841	)	$	(1,016	)
Other comprehensive income (loss) before reclassification, net of tax	(140		)	(91		)	(204		)	5,459			5,024
Amounts reclassified from accumulated other comprehensive income, net of tax	—			—			—			(1,473		)	(1,473		)
Net current period other comprehensive income (loss)	(140		)	(91		)	(204		)	3,986			3,551
Ending balance	$	(140	)	$	48		$	(518	)	$	3,145		$	2,535

	December 31, 2018
Dollars in thousands	Gains on Other Post-Retirement Benefits			Gains and Losses on Cash Flow Hedges			Unrealized Gains and Losses on Available-for-Sale Securities			Total
Beginning balance	$	398		$	(1,564	)	$	2,898		$	1,732
Other comprehensive income (loss) before reclassification, net of tax	(259		)	1,250			(3,266		)	(2,275		)
Amounts reclassified from accumulated other comprehensive income (loss), net of tax	—			—			(473		)	(473		)
Net current period other comprehensive income (loss)	(259		)	1,250			(3,739		)	(2,748		)
Ending balance	139			$	(314	)	$	(841	)	$	(1,016	)

NOTE 21. REVENUE FROM CONTRACTS WITH CUSTOMERS

Interest income, loan fees, realized securities gains and losses, bank owned life insurance income and mortgage banking revenue are not in the scope of ASC Topic 606, Revenue from Contracts with Customers. With the exception of gains or losses on sales of foreclosed properties, all of our revenue from contracts with customers in the scope of ASC 606 is recognized within Noninterest Income in the Consolidated Statements of Income. Incremental costs of obtaining a contract are expensed when incurred when the amortization period is one year or less.

A description of our significant sources of revenue accounted for under ASC 606 follows:

Service fees on deposit accounts are fees we charge our deposit customers for transaction-based, account maintenance and overdraft services. Transaction-based fees, which are earned based on specific transactions or customer activity within a customer’s deposit account, are recognized at the time the related transaction or activity occurs, as it is at this point when we fulfill the customer’s request. Account maintenance fees, which relate primarily to monthly maintenance, are earned over the course of a month, representing the period over which Summit satisfied the performance obligation. Overdraft fees are recognized when the overdraft occurs. Service fees on deposit accounts are paid through a direct charge to the customer’s account.

Bank card revenue is comprised of interchange revenue and ATM fees. Interchange revenue is earned when Summit’s debit and credit cardholders conduct transactions through Mastercard and other payment networks. Interchange fees represent a percentage of the underlying cardholder’s transaction value and are generally recognized daily, concurrent with the transaction processing services provided to the cardholder. ATM fees are earned when a non-Summit cardholder uses a Summit ATM. ATM fees are recognized daily, as the related ATM transactions are settled.

Trust and wealth management fees consist of 1) trust fees and 2) commissions earned from an independent, third-party broker-dealer. We earn trust fees from our contracts with trust clients to administer or manage assets for investment. Trust fees are earned over time (generally monthly) as Summit provides the contracted services and are assessed based on the value of assets under management at each month-end. We earn commissions from investment brokerage services provided to our clients by an

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independent, third-party broker-dealer. We receive monthly commissions from the third-party broker-dealer based upon client activity for the previous month.

Insurance commissions principally consisted of commissions we earned as agents of insurers for selling group employee benefit and property and casualty insurance products to clients. Group employee benefit insurance commissions were recognized over time (generally monthly) as the related customary implied servicing obligations of group policyholders were fulfilled. Property and casualty insurance commissions were recognized using methods which approximated the time of placement of the underlying policy. We were paid insurance commissions ratably as the related policy premiums were paid by clients.

The following table illustrates our total non-interest income segregated by revenues within the scope of ASC Topic 606 and those which are within the scope of other ASC Topics: 

	For the Year Ended December 31,
Dollars in thousands	2019		2018		2017
Service fees on deposit accounts	$	5,094	$	4,631	$	4,109
Bank card revenue	3,536		3,152		2,697
Trust and wealth management fees	2,564		2,653		1,863
Insurance commissions	1,911		4,320		4,005
Other	292		246		227
Net revenue from contracts with customers	13,397		15,002		12,901
Non-interest income within the scope of other ASC topics	5,806		2,420		1,526
Total noninterest income	$	19,203	$	17,422	$	14,427

NOTE 22.  CONDENSED FINANCIAL STATEMENTS OF PARENT COMPANY

Information relative to our parent company balance sheets at December 31, 2019 and 2018 and the related statements of income and cash flows for the years ended December 31, 2019, 2018 and 2017, are presented as follows:

Balance Sheets
	December 31,
Dollars in thousands	2019			2018
Assets
Cash	$	2,185		$	4,326
Investment in subsidiaries	267,132			236,422
Other investments	77			77
Premises and equipment	146			126
Other assets	1,317			1,365
Total assets	$	270,857		$	242,316
Liabilities and Shareholders' Equity
Subordinated debentures owed to unconsolidated subsidiary trusts	$	19,589		$	19,589
Other liabilities	3,504			2,897
Total liabilities	23,093			22,486
Preferred stock, $1.00 par value, authorized 250,000 shares	—			—
Common stock and related surplus, $2.50 par value, authorized
20,000,000 shares; issued: 12,474,641 shares 2019, 12,399,887 shares 2018; outstanding: 12,408,542 shares 2019, 12,312,933 shares 2018	80,084			80,431
Unallocated common stock held by Employee Stock Ownership Plan - 2019 - 66,099 shares, 2018 - 86,954 shares	(714		)	(939		)
Retained earnings	165,859			141,354
Accumulated other comprehensive income (loss)	2,535			(1,016		)
Total shareholders' equity	247,764			219,830
Total liabilities and shareholders' equity	$	270,857		$	242,316

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Statements of Income
	For the Year Ended December 31,
Dollars in thousands	2019			2018			2017
Income
Dividends from subsidiaries	$	16,757		$	10,600		$	6,500
Other dividends and interest income	54			28			24
Management and service fees from subsidiaries	1,542			1,555			1,964
Total income	18,353			12,183			8,488
Expense
Interest expense	949			899			714
Operating expenses	3,755			2,565			2,462
Total expenses	4,704			3,464			3,176
Income before income taxes and equity in
undistributed income of subsidiaries	13,649			8,719			5,312
Income tax (benefit)	(276		)	(374		)	(129		)
Income before equity in undistributed income of subsidiaries	13,925			9,093			5,441
Equity in undistributed income of subsidiaries	17,941			18,979			6,474
Net income	$	31,866		$	28,072		$	11,915

Statements of Cash Flows
	For the Year Ended December 31,
Dollars in thousands	2019			2018			2017
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$	31,866		$	28,072		$	11,915
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in undistributed net income of subsidiaries	(17,941		)	(18,979		)	(6,474		)
Deferred tax (benefit) expense	(18		)	(8		)	346
Depreciation	50			41			39
Share-based compensation expense	274			181			174
Earnings on bank owned life insurance	—			7			(1		)
Decrease (increase) in other assets	491			(375		)	535
Increase in other liabilities	807			1,036			512
Net cash provided by operating activities	15,529			9,975			7,046
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of premises and equipment	(123		)	(86		)	(92		)
Proceeds from sale of premises and equipment	53			13			60
Net cash used in investing activities	(70		)	(73		)	(32		)
CASH FLOWS FROM FINANCING ACTIVITIES
Dividends paid on common stock	(7,361		)	(6,545		)	(5,238		)
Exercise of stock options	7			122			303
Repayment of long-term borrowings	—			—			(902		)
Purchase and retirement of common stock	(10,405		)	(1,689		)	—
Proceeds from issuance of common stock, net of issuance costs	159			237			10
Net cash used in financing activities	(17,600		)	(7,875		)	(5,827		)
(Decrease) increase in cash	(2,141		)	2,027			1,187
Cash:
Beginning	4,326			2,299			1,112
Ending	$	2,185		$	4,326		$	2,299
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Cash payments for:
Interest	$	961		$	875		$	704

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Item 9.  Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

None.

Item 9A.  Controls and Procedures

Disclosure Controls and Procedures:  Our management, including the Chief Executive Officer and Chief Financial Officer, have conducted as of December 31, 2019, an evaluation of the effectiveness of disclosure controls and procedures as defined in Exchange Act Rule 13a-15(e).  Based on that evaluation, the Chief Executive Officer and Chief Financial Officer concluded that the disclosure controls and procedures as of December 31, 2019 were effective.

Management’s Report on Internal Control Over Financial Reporting:  Information required by this item is set forth on page 43.

Attestation Report of the Registered Public Accounting Firm:  Information required by this item is set forth on page 44.

Changes in Internal Control Over Financial Reporting:  There were no changes in our internal control over financial reporting during the quarter ended December 31, 2019, that materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

Item 9B.  Other Information

None

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PART III.

Item 10.  Directors, Executive Officers and Corporate Governance

Information required by this item is set forth under the caption “Delinquent Section 16(a) Reports”, under the headings "NOMINEE WHOSE TERM EXPIRES IN 2021", “NOMINEES WHOSE TERMS EXPIRE IN 2023”, “DIRECTORS WHOSE TERMS EXPIRE IN 2022", “DIRECTORS WHOSE TERMS EXPIRE IN 2021” and “EXECUTIVE OFFICERS” and under the captions “Family Relationships”, “Director Qualifications and Review of Director Nominees”, “Compensation and Nominating Committee” and “Audit and Compliance Committee” in our 2020 Proxy Statement and is incorporated herein by reference.

We have adopted a Code of Ethics that applies to our chief executive officer, chief financial officer, chief accounting officer and all directors, officers and employees.  We have posted this Code of Ethics on our internet website at www.summitfgi.com under “Governance Documents”.  Any amendments to or waivers from any provision of the Code of Ethics applicable to the chief executive officer, chief financial officer, or chief accounting officer will be disclosed by timely posting such information on our internet website.

There have been no material changes to the procedures by which shareholders may recommend nominees since the disclosure of the procedures in our 2019 proxy statement.

Item 11.  Executive Compensation

Information required by this item is set forth under the heading "COMPENSATION DISCUSSION AND ANALYSIS", “EXECUTIVE COMPENSATION” and "COMPENSATION AND NOMINATING COMMITTEE REPORT" in our 2020 Proxy Statement and is incorporated herein by reference.

Item 12.  Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

The following table provides information on our equity compensation plans as of December 31, 2019.

Plan Category	Number of securities to be issued upon exercise of outstanding options, warrants and rights (#) (1)	Weighted-average exercise price of outstanding options, warrants and rights ($)		Number of securities remaining available for future issuance under equity compensation plans (#) (2)
Equity compensation plans approved by stockholders	82,776	$	20.44	104,651
Equity compensation plans not approved by stockholders	—	—		—
Total	82,776	$	20.44	104,651

(1) The number of securities issuable upon exercise of currently outstanding options and SARs includes 5,300 options awarded under the 1998 Officer Stock Option Plan and the 2009 Officer Stock Option Plan, 74,584 shares issuable, based upon our December 31, 2019 closing stock price of $27.09, relative to 325,405 SARs issued under the Summit Financial Group, Inc. 2014 Long-Term Incentive Plan and 2,892 shares issuable pursuant to outstanding RSUs. Since RSUs have no exercise price, they are not included in the weighted average exercise price calculation.

(2) Under the Summit Financial Group, Inc. 2014 Long-Term Incentive Plan, approved by our shareholders on May 15, 2014, we may make equity awards up to 500,000 shares of common stock. During 2019, we issued 138,125 stock appreciation rights with an exercise price of $23.94 and 2,892 RSUs. During 2017, we issued 87,615 stock appreciation rights with an exercise price of $26.01. During 2015, we issued 166,717 stock appreciation rights with an exercise price of $12.01.

The remaining information required by this item is set forth under the caption “Security Ownership of Directors and Officers” and under the headings "NOMINEE FOR DIRECTOR WHOSE TERM EXPIRES IN 2021", “NOMINEES WHOSE TERMS EXPIRE IN 2023”, “DIRECTORS WHOSE TERMS EXPIRE IN 2022”, “DIRECTORS WHOSE TERMS EXPIRE IN 2021”, “PRINCIPAL SHAREHOLDERS” and “EXECUTIVE OFFICERS” in our 2020 Proxy Statement and is incorporated herein by reference.

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Item 13.  Certain Relationships and Related Transactions and Director Independence

Information required by this item is set forth under the captions “Transactions with Related Persons” and “Independence of Directors and Nominees” in our 2020 Proxy Statement and is incorporated herein by reference.

Item 14.  Principal Accounting Fees and Services

Information required by this item is set forth under the caption “Fees to Independent Registered Public Accounting Firm” in our 2020 Proxy Statement and is incorporated herein by reference.

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PART IV.

Item 15.  Exhibits, Financial Statement Schedules

All financial statements and financial statement schedules required to be filed by this Form or by Regulation S-X, which are applicable to the Registrant, have been presented in the financial statements and notes thereto in Item 8 in Management’s Discussion and Analysis of Financial Condition and Results of Operation in Item 7 or elsewhere in this filing where appropriate.  The listing of exhibits follows:

Exhibit Number		Exhibit Description		Incorporated by Reference*
			Filed Herewith	Form	Exhibit	Filing Date
(2)  Plan of acquisition, reorganization, arrangement, liquidation or succession:
	(i)	Agreement and Plan of Merger dated as of September 17, 2019 by and between Summit Financial Group, Inc. and Cornerstone Financial Services, Inc.		8-K	2.1	9/18/2019
	(ii)	Purchase and Assumption Agreement dated as of November 21, 2019 by and between Summit Community Bank, Inc. and MVB Bank, Inc.		8-K	2.1	11/22/2019
(3)  Articles of Incorporation and By-Laws:
	(i)	Amended and Restated Articles of Incorporation of Summit Financial Group, Inc.		10-Q	3.i	5/10/2006
	(ii)	Articles of Amendment 2009		8-K	3.1	11/4/2011
	(iii)	Articles of Amendment 2011		8-K	3.1	5/10/2007
	(iv)	Amended and Restated By-laws of Summit Financial Group, Inc.		10-Q	3.1	3/31/2007
(4) Instruments Defining the Rights of Securities Holders, Including Indentures
	(i)	Description of Registrant's Securities	X
(10)  Material Contracts
	(i)	Amended and Restated Employment Agreement with H. Charles Maddy, III		10-K	10.1	3/16/2009
	(ii)	First Amendment to Amended and Restated Employment Agreement with H. Charles Maddy, III		8-K	10.1	2/4/2010
	(iii)	Second Amendment to Amended and Restated Employment Agreement with H. Charles Maddy, III		8-K	10.1	12/14/2010
	(iv)	Third Amendment to Amended and Restated Employment Agreement with H. Charles Maddy, III		8-K	10.1	2/23/2012
	(v)	Fourth Amendment to Amended and Restated Employment Agreement with H. Charles Maddy, III		8-K	10.1	2/21/2013
	(vi)	Fifth Amendment to Amended and Restated Employment Agreement with H. Charles Maddy, III		8-K	10.1	2/25/2014
	(vii)	Sixth Amendment to Amended and Restated Employment Agreement with H. Charles Maddy, III		8-K	10.1	2/23/2015
	(viii)	Seventh Amendment to Amended and Restated Employment Agreement with H. Charles Maddy, III		8-K	10.1	2/17/2016
	(ix)	Eighth Amendment to Amended and Restated Employment Agreement with H. Charles Maddy, III		8-K	10.1	2/15/2017
	(x)	Ninth Amendment to Amended and Restated Employment Agreement with H. Charles Maddy, III		8-K	10.1	2/9/2018
	(xi)	Tenth Amendment to Amended and Restated Employment Agreement with H. Charles Maddy, III		8-K	10.1	2/7/2019
	(xii)	Eleventh Amendment to Amended and Restated Employment Agreement with H. Charles Maddy, III		8-K	10.1	2/12/2020
	(xiii)	Change in Control Agreement with H. Charles Maddy, III		10-K	10.2	3/16/2009
	(xiv)	Executive Salary Continuation Agreement with H. Charles Maddy, III		10-K	10.3	3/16/2009
	(xv)	Form of Amended and Restated Employment Agreement entered into with Robert S. Tissue, Patrick N. Frye and Scott C. Jennings		10-K	10.4	3/16/2009
	(xvi)	First Amendment to Amended and Restated Employment Agreement with Patrick N. Frye		10-K	10.8	3/1/2012
	(xvii)	Form of Executive Salary Continuation Agreement entered into with Robert S. Tissue, Patrick N. Frye and Scott C. Jennings		10-K	10.5	3/16/2009

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Exhibit Number		Exhibit Description		Incorporated by Reference*
			Filed Herewith	Form	Exhibit	Filing Date
	(xviii)	Amended and Restated Employment Agreement with Bradford E. Ritchie		10-K	10.12	3/1/2012
	(xix)	Executive Salary Continuation Agreement with Bradford E.  Ritchie		10-K	10.13	3/1/2012
	(xx)	Form of Indemnification Agreement between Summit and each Director of Summit		8-K	1.01	2/12/2009
	(xxi)	1998 Officers Stock Option Plan		10-QSB	10	8/17/1998
	(xxii)	Summit Financial Group, Inc. Directors Deferral Plan		10-K	10.10	3/14/2006
	(xxiii)	Amendment No. 1 to Directors Deferral Plan		10-K	10.11	3/14/2006
	(xxiv)	Amendment No. 2 to Directors Deferral Plan		10-K	10.14	3/16/2009
	(xxv)	Summit Community Bank, Inc. Amended and Restated Directors Deferral Plan		10-K	10.15	3/16/2009
	(xxvi)	Rabbi Trust for The Summit Financial Group, Inc. Directors Deferral Plan		10-K	10.16	3/16/2009
	(xxvii)	Amendment No. One to Rabbi Trust for Summit Financial Group, Inc. Directors Deferral Plan		10-K	10.2	3/16/2009
	(xxviii)	Amendment No. One to Rabbi Trust for Summit Community Bank, Inc. (successor in interest to Capital State Bank, Inc.) Directors Deferral Plan		10-K	10.2	3/16/2009
	(xxix)	Amendment No. One to Rabbi Trust for Summit Community Bank, Inc. (successor in interest to Shenandoah Valley National Bank, Inc.) Directors Deferral Plan		10-K	10.2	3/16/2009
	(xxx)	Amendment No. One to Rabbi Trust for Summit Community Bank, Inc. (successor in interest to South Branch Valley National Bank) Directors Deferral Plan		10-K	10.2	3/16/2009
	(xxxi)	Form of Non-Qualified Stock Option Grant Agreement		10-Q	10.3	5/10/2006
	(xxxii)	Form of First Amendment to Non-Qualified Stock Option Grant Agreement		10-Q	10.4	5/10/2006
	(xxxiii)	2009 Officer Stock Option Plan		8-K	10.1	5/14/2009
	(xxxiv)	SFGI 2014 Long-Term Incentive Plan		S-8	4	9/25/2014
	(xxxv)	Form of Summit Financial Group, Inc. 2014 Long-Term Incentive Plan Stock-Settled Stock Appreciation Rights Agreement 2015 award		8-K	10.1	4/29/2015
	(xxxvi)	Form of Summit Financial Group, Inc. 2014 Long-Term Incentive Plan Stock-Settled Stock Appreciation Rights Agreement 2017 award		8-K/A	10.3	2/15/2017
	(xxxvii)	Form of Summit Financial Group, Inc. 2014 Long-Term Incentive Plan Stock-Settled Stock Appreciation Rights Agreement 2019 award		8-K	10.3	2/7/2019
	(xxxxiii)	Securities Purchase Agreement with Castle Creek Capital Partners V, LP		8-K	10.1	8/25/2014
	(xxxxiv)	Executive Officer Management Incentive Plan 2020		8-K	10.2	2/12/2020
(10.1)	Board Attendance and Compensation Policy, as amended			10-K	10.1	3/1/2019
(21)	Subsidiaries of Registrant			10-K	21	3/16/2009
(23)	Consent of Yount, Hyde & Barbour, P.C.		X
(24)	Power of Attorney		X
(31.1)	Sarbanes-Oxley Act Section 302 Certification of Chief Executive Officer		X
(31.2)	Sarbanes-Oxley Act Section 302 Certification of Chief Financial Officer		X
(32.1)**	Sarbanes-Oxley Act Section 906 Certification of Chief Executive Officer		X
(32.2)**	Sarbanes-Oxley Act Section 906 Certification of Chief Financial Officer		X
(101)	Interactive date file (XBRL)		X

* The SEC reference number for all exhibits incorporated by reference is 0-16587.

**  Furnished, not filed.

Item 16.  Form 10-K Summary

Registrants may voluntarily include a summary of information required by Form 10-K under this Item 16. We have elected not to include such summary information.

96

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

			SUMMIT FINANCIAL GROUP, INC.
				a West Virginia Corporation (registrant)
By:	/s/ H. Charles Maddy, III	3/5/2020		By:	/s/ Julie R. Markwood	3/5/2020
	H. Charles Maddy, III	Date			Julie R. Markwood	Date
	President & Chief Executive Officer				Senior Vice President & Chief Accounting Officer
By:	/s/ Robert S. Tissue	3/5/2020
	Robert S. Tissue	Date
	Executive Vice President & Chief Financial Officer

The Directors of Summit Financial Group, Inc. executed a power of attorney appointing Robert S. Tissue and/or Julie R. Markwood their attorneys-in-fact, empowering them to sign this report on their behalf.

By:	/s/ Robert S. Tissue	3/5/2020
	Robert S. Tissue	Date
	Attorney-in-fact

97

EX-4.1

Exhibit 4.1

DESCRIPTION OF REGISTRANT’S SECURITIES

The authorized capital stock of Summit Financial Group, Inc. consists of 20,250,000 shares, of which 20,000,000 shares are common stock, par value $2.50 per share, and 250,000 shares are preferred stock, par value $1.00 per share. As of December 31, 2019, only Summit’s common stock is registered under Section 12 of the Securities Exchange Act of 1934 (the “Exchange Act”).

The following description of Summit’s common stock is a summary and does not describe every right, term or condition of owning Summit’s common stock. It is subject to and is qualified in its entirety by reference to Summit’s Amended and Restated Articles of Incorporation (the “Articles of Incorporation”) and Amended and Restated Bylaws (the “Bylaws”). For a complete description, refer to the Articles of Incorporation and the Bylaws and any applicable provisions of relevant law, including the applicable provisions of the West Virginia Business Corporation Act (WVBCA) and federal law governing bank holding companies.

General

Pursuant to the Articles of Incorporation, Summit is authorized to issue 20,000,000 shares of common stock, par value $2.50 per share. Summit’s common stock is listed on the NASDAQ Capital Market under the symbol “SMMF.” The transfer agent for Summit’s common stock is Computershare. The transfer agent’s address is P.O. Box 505000 Louisville, Kentucky 40233.

Dividends

Summit’s shareholders are entitled to receive dividends when and as declared by Summit’s board of directors. The payment of dividends is also subject to the restrictions set forth in the WVBCA and the limitations imposed by the Federal Reserve Board.

Summit’s payment of dividends depends upon receipt of dividends from Summit Community Bank, Summit’s banking subsidiary. Payment of dividends by Summit Community Bank is regulated by the Federal Deposit Insurance Corporation (“FDIC”) and the West Virginia Division of Financial Institutions (“WVDFI”) and generally, the prior approval of the FDIC is required if the total dividends declared by Summit Community Bank, in any calendar year exceeds its net profits, as defined, for that year combined with its retained net profits for the preceding two years. Additionally, prior approval of the FDIC is required when a state non-member bank has deficit retained earnings but has sufficient current year’s net income, as defined, plus the retained net profits of the two preceding years. The FDIC may prohibit dividends if it deems the payment to be an unsafe or unsound banking practice. The FDIC has issued guidelines for dividend payments by state non-member banks emphasizing that proper dividend size depends on the bank’s earnings and capital.

Voting Rights

All voting rights are vested in the holders of Summit’s common stock. On all matters subject to a vote of shareholders, Summit’s shareholders will be entitled to one vote for each share of common stock owned. Summit’s shareholders have cumulative voting rights with regard to election of directors.

Preemptive Rights

No holder of any share of Summit capital stock has any preemptive right to subscribe to an additional issue of capital stock or to any security convertible into such stock.

Liquidation Rights

Upon any liquidation, dissolution or winding up of Summit’s affairs, the holders of Summit common stock are entitled to receive pro rata all of Summit’s assets for distribution to shareholders. There are no redemption or sinking fund provisions applicable to the common stock.

Summit’s board of directors may approve for issuance, without approval of the holders of common stock, preferred stock that has voting, dividend or liquidation rights superior to that of Summit common stock and which may adversely affect the rights of holders of common stock. The issuance of preferred stock, while providing flexibility in connection with possible acquisitions and other corporate purposes, could, among other things, adversely affect the voting power of the holders of common stock and could have the effect of delaying, deferring or preventing a change in control of Summit.

Assessment and Redemption

Shares of Summit common stock presently outstanding are validly issued, fully paid and nonassessable. There is no provision for any voluntary redemption of Summit common stock.

Anti-Takeover Provisions

Provisions of Summit’s Articles of Incorporation and Bylaws may have anti-takeover effects. These provisions may discourage attempts by others to acquire control of Summit without negotiation with Summit’s board of directors. The effect of these provisions is discussed briefly below.

• Authorized Stock. The shares of Summit’s common stock authorized by Summit’s Articles of Incorporation but not issued provide Summit’s board of directors with the flexibility to effect financings, acquisitions, stock dividends, stock splits and stock-based grants without the need for a shareholder vote. Summit’s board of directors, consistent with its fiduciary duties, could also authorize the issuance of shares of preferred stock, and could establish voting, conversion, liquidation and other rights for preferred stock being issued, in an effort to deter attempts to gain control of Summit.

• Classification of Board of Directors. Summit’s Articles of Incorporation currently provide that the board of directors is divided into three classes of as nearly equal size as possible, with one class elected annually to serve for a term of three years. This classification of the board of directors may discourage a takeover of Summit because a shareholder with a majority interest in the company would have to wait for at least two consecutive annual meetings of shareholders to elect a majority of the members of the board of directors.

• Amendment of Articles of Incorporation. Summit’s Articles of Incorporation requires the approval of 66 2/3% of shareholders to amend certain of the provisions of Summit’s Articles of Incorporation. This requirement is intended to prevent a shareholder who controls a majority of Summit common stock from avoiding the requirements of important provisions of Summit’s Articles of Incorporation simply by amending or repealing those provisions. Accordingly, the holders of a minority of the shares of Summit common stock could block the future repeal or modification of certain provisions of

Summit’s Articles of Incorporation, even if that action were deemed beneficial by the holders of more than a majority, but less than 66 2/3%, of Summit common stock.

Business Combination Provisions

Summit’s Articles of Incorporation provide that at least 66 2/3% of the authorized, issued and outstanding voting shares must approve certain business combination transactions unless the particular business combination transaction has been previously approved by at least 66 2/3% of the board of directors, in which case a simple majority vote of the shareholders is required. In addition, Summit’s Articles of Incorporation provide that neither Summit nor any of its subsidiaries may become a party to any business combination transaction unless certain fair price requirements are satisfied.

Anti-Greenmail Provisions

Summit’s Articles of Incorporation provide that it may not repurchase, directly or indirectly, any shares of Summit’s common stock at a purchase price that is greater than fair market value for such shares, from a 10% or greater shareholder (or an affiliate or associate of such shareholder) who acquired at least half of such shares within the last two years, unless such stock repurchase is approved by the holders of at least a majority of Summit’s outstanding shares of common stock (other than the interested shareholder).

EX-23

Exhibit 23

CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

We consent to the incorporation by reference in Registration Statements No. 333-199598, 333-166662 and 333-153517 on Form S-3 and No. 333-170145, 333-198941, 333-198939 and 333-99291 on Form S-8 of Summit Financial Group, Inc. of our reports dated March 6, 2020, relating to the consolidated financial statements and the effectiveness of internal control over financial reporting, appearing in the Annual Report on Form 10-K of Summit Financial Group, Inc. for the year ended December 31, 2019.

/s/ Yount, Hyde & Barbour, P.C.

Winchester, Virginia

March 6, 2020

EX-24

Exhibit 24

POWER OF ATTORNEY

KNOW ALL MEN BY THESE PRESENTS, that each person whose signature appears below, constitutes and appoints Robert S. Tissue and Julie R. Markwood or either of them his true and lawful attorneys-in-fact and agents, with full power of substitution and resubstitution, for him and in his name, place and stead, in any and all capacities, to sign Summit Financial Group, Inc.’s Annual Report on Form 10-K for the fiscal year ended December 31, 2019, and all amendments thereto, and file the same, with all exhibits thereto, and other documents in connection therewith, with the Securities and Exchange Commission, granting unto said attorneys-in-fact and agents and each of them, full power and authority to do and perform each and every act and thing requisite and necessary to be done in and about the premises, as fully to all intents and purposes as he might or could do in person, hereby ratifying and confirming all that said attorneys-in-fact and agents, or any of them, or their or his substitute or substitutes, may lawfully do or cause to be done by virtue hereof.

/s/ Oscar M. Bean	/s/ Gary L. Hinkle
Oscar M. Bean	Gary L. Hinkle
/s/ Dewey F. Bensenhaver, M.D.	/s/ Gerald W. Huffman
Dewey F. Bensenhaver, M.D.	Gerald W. Huffman
/s/ James M. Cookman	/s/ H. Charles Maddy, III
James M. Cookman	H. Charles Maddy, III
/s/ J. Scott Bridgeforth	/s/ Charles S. Piccirillo
J. Scott Bridgeforth	Charles S. Piccirillo
/s/ James P. Geary, II	/s/ Thomas J. Hawse, III
James P. Geary, II	Thomas J. Hawse, III
/s/ Georgette R. George	/s/ John W. Crites, II
Georgette R. George	John W. Crites, II
/s/ John B. Gianola	/s/ Kyle E. Almond
John B. Gianola	Kyle E. Almond
/s/ John H. Shott	/s/ Ronald L. Bowling
John H. Shott	Ronald L. Bowling
/s/ Jason A. Kitzmiller	/s/ Ronald B. Spencer
Jason A. Kitzmiller	Ronald B. Spencer

EX-31.1

Exhibit 31.1

SARBANES-OXLEY ACT SECTION 302

CERTIFICATION OF CHIEF EXECUTIVE OFFICER

I, H. Charles Maddy, III, certify that:

1. I have reviewed this annual report on Form 10-K of Summit Financial Group, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant's board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in registrant’s internal control over financial reporting.

	/s/ H. Charles Maddy, III
	H. Charles Maddy, III
Date: March 5, 2020	President and Chief Executive Officer

EX-31.2

Exhibit 31.2

SARBANES-OXLEY ACT SECTION 302

CERTIFICATION OF CHIEF FINANCIAL OFFICER

I, Robert S. Tissue, certify that:

1. I have reviewed this annual report on Form 10-K of Summit Financial Group, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report)that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant's board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in registrant’s internal control over financial reporting.

	/s/ Robert S. Tissue
	Robert S. Tissue
Date: March 5, 2020	Exec. Vice President and Chief Financial Officer

EX-32.1

Exhibit 32.1

SARBANES-OXLEY ACT SECTION 906

CERTIFICATION OF CHIEF EXECUTIVE OFFICER

In connection with this Annual Report of Summit Financial Group, Inc. ("Summit “) on Form 10-K for the year ending December 31, 2019 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, H. Charles Maddy, III, President and Chief Executive Officer of Summit, certify pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of Summit.

	/s/ H. Charles Maddy, III
	H. Charles Maddy, III
Date: March 5, 2020	President and Chief Executive Officer

The foregoing certification is being furnished solely pursuant to 18 U.S.C. § 1350 and is not being filed as part of the Report or as a separate disclosure document.

EX-32.2

Exhibit 32.2

SARBANES-OXLEY ACT SECTION 906

CERTIFICATION OF CHIEF FINANCIAL OFFICER

In connection with this Annual Report of Summit Financial Group, Inc. ("Summit “) on Form 10-K for the year ending December 31, 2019 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Robert S. Tissue, Senior Vice President and Chief Financial Officer of Summit, certify pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of Summit.

	/s/ Robert S. Tissue
	Robert S. Tissue,
Date: March 5, 2020	Exec. Vice President and Chief Financial Officer

The foregoing certification is being furnished solely pursuant to 18 U.S.C. § 1350 and is not being filed as part of the Report or as a separate disclosure document.

XML

Loans (Schedule of the Activity Regarding TDRs by Loan Type) (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2019 USD ($)
Troubled Debt Restructurings [Roll Forward]
Troubled debt restructurings, beginning balance	$ 26,997
Additions	1,074
Charge-offs	0
Net (paydowns) advances	(2,395)
Transfer into OREO	0
Refinance out of TDR status	0
Troubled debt restructurings, ending balance	25,676
Allowance related to troubled debt restructurings	1,001
Land And Land Improvements [Member]
Troubled Debt Restructurings [Roll Forward]
Troubled debt restructurings, beginning balance	2,654
Additions	0
Charge-offs	0
Net (paydowns) advances	(694)
Transfer into OREO	0
Refinance out of TDR status	0
Troubled debt restructurings, ending balance	1,960
Allowance related to troubled debt restructurings	589
Construction [Member]
Troubled Debt Restructurings [Roll Forward]
Troubled debt restructurings, beginning balance	0
Additions	0
Charge-offs	0
Net (paydowns) advances	0
Transfer into OREO	0
Refinance out of TDR status	0
Troubled debt restructurings, ending balance	0
Allowance related to troubled debt restructurings	0
Commercial Loan [Member]
Troubled Debt Restructurings [Roll Forward]
Troubled debt restructurings, beginning balance	273
Additions	0
Charge-offs	0
Net (paydowns) advances	(71)
Transfer into OREO	0
Refinance out of TDR status	0
Troubled debt restructurings, ending balance	202
Allowance related to troubled debt restructurings	4
Owner Occupied [Member]
Troubled Debt Restructurings [Roll Forward]
Troubled debt restructurings, beginning balance	9,365
Additions	325
Charge-offs	0
Net (paydowns) advances	(204)
Transfer into OREO	0
Refinance out of TDR status	0
Troubled debt restructurings, ending balance	9,486
Allowance related to troubled debt restructurings	245
Non Owner Occupied [Member]
Troubled Debt Restructurings [Roll Forward]
Troubled debt restructurings, beginning balance	5,404
Additions	324
Charge-offs	0
Net (paydowns) advances	(203)
Transfer into OREO	0
Refinance out of TDR status	0
Troubled debt restructurings, ending balance	5,525
Allowance related to troubled debt restructurings	0
Non Jumbo [Member]
Troubled Debt Restructurings [Roll Forward]
Troubled debt restructurings, beginning balance	4,490
Additions	410
Charge-offs	0
Net (paydowns) advances	(287)
Transfer into OREO	0
Refinance out of TDR status	0
Troubled debt restructurings, ending balance	4,613
Allowance related to troubled debt restructurings	163
Jumbo [Member]
Troubled Debt Restructurings [Roll Forward]
Troubled debt restructurings, beginning balance	4,278
Additions	0
Charge-offs	0
Net (paydowns) advances	(924)
Transfer into OREO	0
Refinance out of TDR status	0
Troubled debt restructurings, ending balance	3,354
Allowance related to troubled debt restructurings	0
Home Equity Line of Credit [Member]
Troubled Debt Restructurings [Roll Forward]
Troubled debt restructurings, beginning balance	523
Additions	0
Charge-offs	0
Net (paydowns) advances	0
Transfer into OREO	0
Refinance out of TDR status	0
Troubled debt restructurings, ending balance	523
Allowance related to troubled debt restructurings	0
Mortgage Warehouse Lines [Member]
Troubled Debt Restructurings [Roll Forward]
Troubled debt restructurings, beginning balance	0
Additions	0
Charge-offs	0
Net (paydowns) advances	0
Transfer into OREO	0
Refinance out of TDR status	0
Troubled debt restructurings, ending balance	0
Allowance related to troubled debt restructurings	0
Consumer Portfolio Segment [Member]
Troubled Debt Restructurings [Roll Forward]
Troubled debt restructurings, beginning balance	10
Additions	15
Charge-offs	0
Net (paydowns) advances	(12)
Transfer into OREO	0
Refinance out of TDR status	0
Troubled debt restructurings, ending balance	13
Allowance related to troubled debt restructurings	0
Other Loans [Member]
Troubled Debt Restructurings [Roll Forward]
Troubled debt restructurings, beginning balance	0
Additions	0
Charge-offs	0
Net (paydowns) advances	0
Transfer into OREO	0
Refinance out of TDR status	0
Troubled debt restructurings, ending balance	0
Allowance related to troubled debt restructurings	$ 0

XML

Premises And Equipment (Narrative) (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Property, Plant and Equipment [Line Items]
Capitalized Interest	$ 0	$ 0	$ 0
Depreciation expense	$ 2,614,000	$ 2,168,000	$ 1,887,000
Building [Member]
Property, Plant and Equipment [Line Items]
Useful life	30 years
Furniture and equipment [Member] | Minimum [Member]
Property, Plant and Equipment [Line Items]
Useful life	3 years
Furniture and equipment [Member] | Maximum [Member]
Property, Plant and Equipment [Line Items]
Useful life	10 years

XML

Allowance For Loan Losses (Summary Of Net Unearned Income) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2019	Dec. 31, 2018
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning balance	$ 13,047	$ 12,565	$ 11,674
Total Losses	(2,103)	(2,603)	(1,288)
Total Recoveries	580	835	929
Provision for loan losses	1,550	2,250	1,250
Ending balance	13,074	13,047	12,565
Allowance related to: Loans individually evaluated for impairment				$ 1,335	$ 2,142
Allowance related to: Loans collectively evaluated for impairment				11,719	10,891
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Allowance for Loan Losses				20	14
Total Allowance	13,074	13,047	12,565	13,074	13,047
Loans individually evaluated for impairment				37,163	43,356
Loans collectively evaluated for impairment				1,873,492	1,648,185
Loans Acquired with Deteriorated Credit Quality				2,844	3,511
Total Loans				1,913,499	1,695,052
Commercial Loan [Member]
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning balance	1,705	1,303
Total Losses	(281)	(248)	(23)
Total Recoveries	17	16	124
Provision for loan losses	(295)	634
Ending balance	1,146	1,705	1,303
Allowance related to: Loans individually evaluated for impairment				51	682
Allowance related to: Loans collectively evaluated for impairment				1,095	1,023
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Allowance for Loan Losses				0	0
Total Allowance	1,146	1,705	1,303	1,146	1,705
Loans individually evaluated for impairment				5,285	4,362
Loans collectively evaluated for impairment				201,853	189,953
Loans Acquired with Deteriorated Credit Quality				0	0
Total Loans				207,138	194,315
Owner Occupied [Member]
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning balance	2,214	2,424
Total Losses	(2)	(38)	(5)
Total Recoveries	21	23	89
Provision for loan losses	467	(195)
Ending balance	2,700	2,214	2,424
Allowance related to: Loans individually evaluated for impairment				409	462
Allowance related to: Loans collectively evaluated for impairment				2,291	1,752
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Allowance for Loan Losses				0	0
Total Allowance	2,700	2,214	2,424	2,700	2,214
Loans individually evaluated for impairment				11,085	11,569
Loans collectively evaluated for impairment				265,133	254,793
Loans Acquired with Deteriorated Credit Quality				0	0
Total Loans				276,218	266,362
Non Owner Occupied [Member]
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning balance	5,742	4,950
Total Losses	(170)	(619)	(65)
Total Recoveries	1	0	91
Provision for loan losses	366	1,411
Ending balance	5,939	5,742	4,950
Allowance related to: Loans individually evaluated for impairment				113	9
Allowance related to: Loans collectively evaluated for impairment				5,821	5,729
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Allowance for Loan Losses				5	4
Total Allowance	5,939	5,742	4,950	5,939	5,742
Loans individually evaluated for impairment				9,054	9,855
Loans collectively evaluated for impairment				619,499	553,809
Loans Acquired with Deteriorated Credit Quality				653	1,162
Total Loans				629,206	564,826
Land And Land Development [Member]
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning balance	339	641
Total Losses	(2)	(259)	(3)
Total Recoveries	108	270	278
Provision for loan losses	155	(313)
Ending balance	600	339	641
Allowance related to: Loans individually evaluated for impairment				589	298
Allowance related to: Loans collectively evaluated for impairment				11	41
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Allowance for Loan Losses				0	0
Total Allowance	600	339	641	600	339
Loans individually evaluated for impairment				1,960	5,824
Loans collectively evaluated for impairment				82,152	63,009
Loans Acquired with Deteriorated Credit Quality				0	0
Total Loans				84,112	68,833
Construction Loans [Member]
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning balance	64	153
Total Losses	0	0	(33)
Total Recoveries	0	0	0
Provision for loan losses	178	(89)
Ending balance	242	64	153
Allowance related to: Loans individually evaluated for impairment				0	0
Allowance related to: Loans collectively evaluated for impairment				242	64
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Allowance for Loan Losses				0	0
Total Allowance	242	64	153	242	64
Loans individually evaluated for impairment				0	0
Loans collectively evaluated for impairment				37,523	24,731
Loans Acquired with Deteriorated Credit Quality				0	0
Total Loans				37,523	24,731
Non Jumbo [Member]
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning balance	2,090	1,911
Total Losses	(979)	(887)	(359)
Total Recoveries	125	228	134
Provision for loan losses	576	838
Ending balance	1,812	2,090	1,911
Allowance related to: Loans individually evaluated for impairment				173	585
Allowance related to: Loans collectively evaluated for impairment				1,624	1,495
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Allowance for Loan Losses				15	10
Total Allowance	1,812	2,090	1,911	1,812	2,090
Loans individually evaluated for impairment				5,263	6,261
Loans collectively evaluated for impairment				348,453	329,342
Loans Acquired with Deteriorated Credit Quality				1,247	1,374
Total Loans				354,963	336,977
Jumbo [Member]
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning balance	379	72
Total Losses	0	0	(2)
Total Recoveries	0	25	0
Provision for loan losses	(368)	282
Ending balance	11	379	72
Allowance related to: Loans individually evaluated for impairment				0	106
Allowance related to: Loans collectively evaluated for impairment				11	273
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Allowance for Loan Losses				0	0
Total Allowance	11	379	72	11	379
Loans individually evaluated for impairment				3,980	4,953
Loans collectively evaluated for impairment				66,023	67,671
Loans Acquired with Deteriorated Credit Quality				944	975
Total Loans				70,947	73,599
Home Equity [Member]
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning balance	167	638
Total Losses	(24)	(26)	(158)
Total Recoveries	19	10	30
Provision for loan losses	(24)	(455)
Ending balance	138	167	638
Allowance related to: Loans individually evaluated for impairment				0	0
Allowance related to: Loans collectively evaluated for impairment				138	167
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Allowance for Loan Losses				0	0
Total Allowance	138	167	638	138	167
Loans individually evaluated for impairment				523	523
Loans collectively evaluated for impairment				76,045	80,387
Loans Acquired with Deteriorated Credit Quality				0	0
Total Loans				76,568	80,910
Mortgage Warehouse Lines [Member]
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning balance	0	0
Total Losses	0	0	0
Total Recoveries	0	0	0
Provision for loan losses	0	0
Ending balance	0	0	0
Allowance related to: Loans individually evaluated for impairment				0	0
Allowance related to: Loans collectively evaluated for impairment				0	0
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Allowance for Loan Losses				0	0
Total Allowance	0	0	0	0	0
Loans individually evaluated for impairment				0	0
Loans collectively evaluated for impairment				126,237	39,140
Loans Acquired with Deteriorated Credit Quality				0	0
Total Loans				126,237	39,140
Consumer Portfolio Segment [Member]
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning balance	79	210
Total Losses	(285)	(244)	(389)
Total Recoveries	168	141	82
Provision for loan losses	173	(28)
Ending balance	135	79	210
Allowance related to: Loans individually evaluated for impairment				0	0
Allowance related to: Loans collectively evaluated for impairment				135	79
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Allowance for Loan Losses				0	0
Total Allowance	135	79	210	135	79
Loans individually evaluated for impairment				13	9
Loans collectively evaluated for impairment				36,457	32,451
Loans Acquired with Deteriorated Credit Quality				0	0
Total Loans				36,470	32,460
Other
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning balance	268	263
Total Losses	(360)	(282)	(251)
Total Recoveries	121	122	101
Provision for loan losses	322	165
Ending balance	351	268	263
Allowance related to: Loans individually evaluated for impairment				0	0
Allowance related to: Loans collectively evaluated for impairment				351	268
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Allowance for Loan Losses				0	0
Total Allowance	$ 351	$ 268	$ 263	351	268
Loans individually evaluated for impairment				0	0
Loans collectively evaluated for impairment				14,117	12,899
Loans Acquired with Deteriorated Credit Quality				0	0
Total Loans				$ 14,117	$ 12,899

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Loans (Schedule Of Nonaccrual Loans Included In Net Balance Of Loans) (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Financing Receivable, Recorded Investment, Past Due [Line Items]
Nonaccrual loans	$ 11,468	$ 14,989
Commercial Loan [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Nonaccrual loans	764	935
Owner Occupied [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Nonaccrual loans	4,198	1,028
Non Owner Occupied [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Nonaccrual loans	1,602	2,210
Land And Land Improvements [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Nonaccrual loans	188	3,198
Construction Loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Nonaccrual loans	138	0
Non Jumbo [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Nonaccrual loans	4,120	6,532
Jumbo [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Nonaccrual loans	0	675
Home Equity [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Nonaccrual loans	284	299
Mortgage Warehouse Lines [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Nonaccrual loans	0	0
Consumer Portfolio Segment [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Nonaccrual loans	74	112
Other Loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Nonaccrual loans	$ 100	$ 0

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Loans Loans (Schedule of Acquired Loans) (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items]
Acquired Loans Total Outstanding Balance	$ 135,233	$ 142,442
Acquired Loans Carrying Value	132,808	140,198
Commercial Portfolio Segment [Member]
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items]
Acquired Loans Carrying Value	3,333	3,934
Owner Occupied [Member]
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items]
Acquired Loans Carrying Value	17,416	16,133
Non Owner Occupied [Member]
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items]
Acquired Loans Carrying Value	13,610	24,593
Land And Land Improvements [Member]
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items]
Acquired Loans Carrying Value	3,031	5,161
Construction Loans [Member]
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items]
Acquired Loans Carrying Value	0	0
Non Jumbo [Member]
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items]
Acquired Loans Carrying Value	85,103	79,268
Jumbo [Member]
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items]
Acquired Loans Carrying Value	3,999	3,552
Home Equity [Member]
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items]
Acquired Loans Carrying Value	2,144	2,805
Consumer Portfolio Segment [Member]
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items]
Acquired Loans Carrying Value	4,159	4,630
Other Loans [Member]
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items]
Acquired Loans Carrying Value	13	122
Purchased Nonimpaired Loans [Member]
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items]
Acquired Loans Purchased Performing Outstanding Balance	131,745	138,167
Acquired Loans Purchased Performing Carrying Value	129,964	136,687
Purchased Nonimpaired Loans [Member] | Commercial Portfolio Segment [Member]
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items]
Acquired Loans Purchased Performing Carrying Value	3,333	3,934
Purchased Nonimpaired Loans [Member] | Owner Occupied [Member]
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items]
Acquired Loans Purchased Performing Carrying Value	17,416	16,133
Purchased Nonimpaired Loans [Member] | Non Owner Occupied [Member]
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items]
Acquired Loans Purchased Performing Carrying Value	12,957	23,431
Purchased Nonimpaired Loans [Member] | Land And Land Improvements [Member]
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items]
Acquired Loans Purchased Performing Carrying Value	3,031	5,161
Purchased Nonimpaired Loans [Member] | Construction Loans [Member]
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items]
Acquired Loans Purchased Performing Carrying Value	0	0
Purchased Nonimpaired Loans [Member] | Non Jumbo [Member]
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items]
Acquired Loans Purchased Performing Carrying Value	83,856	77,894
Purchased Nonimpaired Loans [Member] | Jumbo [Member]
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items]
Acquired Loans Purchased Performing Carrying Value	3,055	2,577
Purchased Nonimpaired Loans [Member] | Home Equity [Member]
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items]
Acquired Loans Purchased Performing Carrying Value	2,144	2,805
Purchased Nonimpaired Loans [Member] | Consumer Portfolio Segment [Member]
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items]
Acquired Loans Purchased Performing Carrying Value	4,159	4,630
Purchased Nonimpaired Loans [Member] | Other Loans [Member]
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items]
Acquired Loans Purchased Performing Carrying Value	13	122
Purchased Impaired Loans [Member]
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items]
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance	3,488	4,275
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Carrying Amount, Net	2,844	3,511
Purchased Impaired Loans [Member] | Commercial Portfolio Segment [Member]
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items]
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Carrying Amount, Net	0	0
Purchased Impaired Loans [Member] | Owner Occupied [Member]
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items]
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Carrying Amount, Net	0	0
Purchased Impaired Loans [Member] | Non Owner Occupied [Member]
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items]
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Carrying Amount, Net	653	1,162
Purchased Impaired Loans [Member] | Land And Land Improvements [Member]
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items]
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Carrying Amount, Net	0	0
Purchased Impaired Loans [Member] | Construction Loans [Member]
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items]
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Carrying Amount, Net	0	0
Purchased Impaired Loans [Member] | Non Jumbo [Member]
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items]
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Carrying Amount, Net	1,247	1,374
Purchased Impaired Loans [Member] | Jumbo [Member]
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items]
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Carrying Amount, Net	944	975
Purchased Impaired Loans [Member] | Home Equity [Member]
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items]
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Carrying Amount, Net	0	0
Purchased Impaired Loans [Member] | Consumer Portfolio Segment [Member]
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items]
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Carrying Amount, Net	0	0
Purchased Impaired Loans [Member] | Other Loans [Member]
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items]
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Carrying Amount, Net	$ 0	$ 0

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Loans (Schedule Of Recorded Investment Evaluated Based On Aging Status Of Loans And Payment Activity) (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Performing Financing Receivable [Member]
Financing Receivable, Recorded Investment [Line Items]
Total	$ 548,445	$ 529,191
Performing Financing Receivable [Member] | Non Jumbo [Member]
Financing Receivable, Recorded Investment [Line Items]
Total	350,843	330,445
Performing Financing Receivable [Member] | Jumbo [Member]
Financing Receivable, Recorded Investment [Line Items]
Total	70,947	72,924
Performing Financing Receivable [Member] | Home Equity [Member]
Financing Receivable, Recorded Investment [Line Items]
Total	76,284	80,611
Performing Financing Receivable [Member] | Consumer Portfolio Segment [Member]
Financing Receivable, Recorded Investment [Line Items]
Total	36,354	32,312
Performing Financing Receivable [Member] | Other Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Total	14,017	12,899
Nonperforming Financing Receivable [Member]
Financing Receivable, Recorded Investment [Line Items]
Total	4,620	7,654
Nonperforming Financing Receivable [Member] | Non Jumbo [Member]
Financing Receivable, Recorded Investment [Line Items]
Total	4,120	6,532
Nonperforming Financing Receivable [Member] | Jumbo [Member]
Financing Receivable, Recorded Investment [Line Items]
Total	0	675
Nonperforming Financing Receivable [Member] | Home Equity [Member]
Financing Receivable, Recorded Investment [Line Items]
Total	284	299
Nonperforming Financing Receivable [Member] | Consumer Portfolio Segment [Member]
Financing Receivable, Recorded Investment [Line Items]
Total	116	148
Nonperforming Financing Receivable [Member] | Other Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Total	$ 100	$ 0

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Significant New Authoritative Accounting Guidance Significant New Authoritative Accounting Guidance (Narrative) (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Jan. 01, 2020
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]
Operating Leases, Rent Expense, Net	$ 121,000	$ 305,000	$ 284,000
ASU 2016-13 Adjustment to Allowance for Loan Credit Losses and Unfunded Commitments				$ 8,890,000
Retained Earnings Adjustment Due to Adoption of ASU 2016-13				7,020,000
Deferred Tax Adjustment Due to Adoption of ASU 2016-13				$ 1,870,000

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Fair Value Measurements (Narrative) (Details)	12 Months Ended
	Dec. 31, 2019
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Threshold Period for Ordering Appraisal on Impaired Loans, Length of Existing Appraisal	12 months
Length of Time Generally Receive New Appraisal Post Impairment	3 months
Length of Time Generally Receive New Appraisal on Foreclosed Properties	18 months
Minimum [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Discount to sell collateral	7.00%
Maximum [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Discount to sell collateral	10.00%

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Securities (Tables)

12 Months Ended

Dec. 31, 2019

Debt Securities, Available-for-sale [Abstract]

Available-for-sale Securities

The amortized cost, unrealized gains, unrealized losses and estimated fair values of securities at December 31, 2019 and 2018, are summarized as follows:

	December 31, 2019
	Amortized		Unrealized
Dollars in thousands	Cost		Gains		Losses		Fair Value
Available for Sale
Taxable debt securities
U.S. Government and agencies and corporations	$	21,036	$	212	$	384	$	20,864
Residential mortgage-backed securities:
Government-sponsored agencies	70,379		1,031		435		70,975
Nongovernment-sponsored entities	10,253		17		41		10,229
State and political subdivisions
General obligations	12,603		25		171		12,457
Water and sewer revenues	7,170		71		114		7,127
Lease revenues	5,310		25		77		5,258
University revenues	5,917		164		16		6,065
Other revenues	18,831		344		109		19,066
Corporate debt securities	18,268		81		149		18,200
Asset-backed securities	33,826		—		812		33,014
Total taxable debt securities	203,593		1,970		2,308		203,255
Tax-exempt debt securities
State and political subdivisions
General obligations	36,673		2,526		—		39,199
Water and sewer revenues	9,565		633		—		10,198
Lease revenues	8,455		598		—		9,053
Other revenues	13,929		728		7		14,650
Total tax-exempt debt securities	68,622		4,485		7		73,100
Total available for sale securities	$	272,215	$	6,455	$	2,315	$	276,355

	December 31, 2018
	Amortized		Unrealized
Dollars in thousands	Cost		Gains		Losses		Fair Value
Available for Sale
Taxable debt securities
U.S. Government and agencies and corporations	$	26,303	$	203	$	366	$	26,140
Residential mortgage-backed securities:
Government-sponsored agencies	80,883		603		1,177		80,309
Nongovernment-sponsored entities	611		4		1		614
State and political subdivisions
General obligations	6,081		—		126		5,955
Other revenues	13,457		17		186		13,288
Corporate debt securities	14,807		9		304		14,512
Asset-backed securities	25,288		10		123		25,175
Total taxable debt securities	167,430		846		2,283		165,993
Tax-exempt debt securities
State and political subdivisions
General obligations	65,626		624		344		65,906
Water and sewer revenues	20,018		225		98		20,145
Lease revenues	10,980		135		7		11,108
Other revenues	30,197		77		279		29,995
Total tax-exempt debt securities	126,821		1,061		728		127,154
Total available for sale securities	$	294,251	$	1,907	$	3,011	$	293,147

Summary Of Volume of State and Political Subdivision Securities Held in Portfolio

We own no such securities of any single issuer which we deem to be a concentration.

	December 31, 2019
	Amortized		Unrealized
Dollars in thousands	Cost		Gains		Losses		Fair Value
California	$	21,194	$	1,109	$	128	$	22,175
Michigan	10,864		623		—		11,487
Illinois	9,245		410		—		9,655
Texas	8,934		344		64		9,214
West Virginia	8,490		206		7		8,689

Schedule of Realized Gain (Loss)

The proceeds from sales, calls and maturities of available for sale securities, including principal payments received on mortgage-backed obligations, and the related gross gains and losses realized are as follows:

Dollars in thousands	Proceeds from						Gross realized
			Calls and		Principal
Years ended December 31,	Sales		Maturities		Payments		Gains		Losses
2019	$	142,423	$	1,871	$	22,870	$	2,270	$	332
2018	107,559		1,145		24,814		1,785		1,163
2017	152,882		2,700		31,902		685		699

Investments Classified by Contractual Maturity Date

The maturities, amortized cost and estimated fair values of securities at December 31, 2019, are summarized as follows:

Dollars in thousands	Amortized Cost		Fair Value
Due in one year or less	$	29,692	$	29,768
Due from one to five years	79,060		79,170
Due from five to ten years	60,439		60,627
Due after ten years	103,024		106,790
Total	$	272,215	$	276,355

Schedule of Unrealized Loss on Investments

Provided below is a summary of securities available for sale which were in an unrealized loss position at December 31, 2019 and 2018.

	2019
		Less than 12 months				12 months or more				Total
Dollars in thousands	# of securities in loss position	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
Taxable debt securities
U.S. Government agencies and corporations	15	$	—	$	—	$	14,903	$	384	$	14,903	$	384
Residential mortgage-backed securities:
Government-sponsored agencies	21	12,298		96		15,174		339		27,472		435
Nongovernment-sponsored entities	4	8,323		41		—		—		8,323		41
State and political subdivisions:
General obligations	10	10,581		171		—		—		10,581		171
Water and sewer revenues	4	4,421		114		—		—		4,421		114
Lease revenues	4	4,235		77		—		—		4,235		77
University revenues	1	1,307		16		—		—		1,307		16
Other revenues	6	6,517		109		—		—		6,517		109
Corporate debt securities	6	1,686		3		3,739		146		5,425		149
Asset-backed securities	15	3,441		34		29,573		778		33,014		812
Tax-exempt debt securities
State and political subdivisions:
Other revenues	2	1,183		7		—		—		1,183		7
Total	88	$	53,992	$	668	$	63,389	$	1,647	$	117,381	$	2,315

	2018
		Less than 12 months				12 months or more				Total
Dollars in thousands	# of securities in loss position	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
Taxable debt securities
U.S. Government agencies and corporations	15	$	12,185	$	184	$	7,464	$	182	$	19,649	$	366
Residential mortgage-backed securities:
Government-sponsored agencies	37	23,277		241		24,472		936		47,749		1,177
Nongovernment-sponsored entities	1	—		—		436		1		436		1
State and political subdivisions:
General obligations	8	—		—		5,222		126		5,222		126
Other revenues	11	968		16		9,450		170		10,418		186
Corporate debt securities	7	2,759		109		4,587		195		7,346		304
Asset-backed securities	9	20,129		123		—		—		20,129		123
Tax-exempt debt securities
State and political subdivisions:
General obligations	25	7,273		50		16,830		294		24,103		344
Water and sewer revenues	7	989		6		4,311		92		5,300		98
Lease revenues	2	553		—		557		7		1,110		7
Other revenues	12	7,309		62		11,531		217		18,840		279
Total	134	$	75,442	$	791	$	84,860	$	2,220	$	160,302	$	3,011

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Income Taxes (Schedule of Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Deferred tax assets
Allowance for loan losses	$ 3,017	$ 2,921
Depreciation	29	405
Foreclosed properties	2,659	2,951
Deferred Revenue	0	18
Deferred compensation	3,296	2,490
Other deferred costs and accrued expenses	534	645
Deferred Tax Assets, Unrealized Losses on Available-for-Sale Securities, Gross	0	265
Net unrealized loss on interest rate swaps	163	99
Capital loss carryforwards	0	166
Total	9,698	9,960
Deferred tax liabilities
Deferred tax liabilities, Accretion on tax-exempt securities	62	29
Net unrealized gain on securities available for sale	994	0
Deferred Tax Liability, Other Post Retirement Benefits	15	44
Purchase accounting adjustments and goodwill	2,099	2,253
Total	3,170	2,326
Net deferred tax assets	$ 6,528	$ 7,634

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Derivative Financial Instruments Derivative Financial Instruments (Narrative) (Details) $ in Thousands	Dec. 31, 2019 USD ($) contract	Dec. 31, 2018 USD ($)
Interest Rate Swap Maturing October 18 2020 [Domain]
Derivative [Line Items]
Derivative Liability, Notional Amount	$ 30,000
Cash flow hedges, notional amount	$ 30,000
Swaption interest rate	2.89%
Interest Rate Swap Maturing October 18 2021 [Domain]
Derivative [Line Items]
Derivative Liability, Notional Amount	$ 40,000
Cash flow hedges, notional amount	$ 40,000
Swaption interest rate	2.19%
Interest Rate Swap Maturing October 18 2019 [Domain]
Derivative [Line Items]
Derivative Liability, Notional Amount		$ 40,000
Cash flow hedges, notional amount		$ 40,000
Swaption interest rate		2.84%
Cash Flow Hedging [Member]
Derivative [Line Items]
Number of instruments held | contract	2
Fair Value Hedging [Member]
Derivative [Line Items]
Number of instruments held | contract	2
Fair Value Hedging [Member] | Commercial Real Estate [Member] | Interest Rate Swap Maturing January 15 2025 [Domain]
Derivative [Line Items]
Derivative Asset, Notional Amount	$ 9,950
Swaption interest rate	4.33%
Derivative, Basis Spread on Variable Rate	240.00%
Fair Value Hedging [Member] | Commercial Real Estate [Member] | Interest Rate Swap Maturing January 15 2026 [Domain]
Derivative [Line Items]
Derivative Asset, Notional Amount	$ 11,300
Swaption interest rate	4.30%
Derivative, Basis Spread on Variable Rate	218.00%

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Condensed Financial Statements Of Parent Company

12 Months Ended

Dec. 31, 2019

Condensed Financial Information Disclosure [Abstract]

Condensed Financial Statements of Parent Company

CONDENSED FINANCIAL STATEMENTS OF PARENT COMPANY

Information relative to our parent company balance sheets at December 31, 2019 and 2018 and the related statements of income and cash flows for the years ended December 31, 2019, 2018 and 2017, are presented as follows:

Balance Sheets
	December 31,
Dollars in thousands	2019			2018
Assets
Cash	$	2,185		$	4,326
Investment in subsidiaries	267,132			236,422
Other investments	77			77
Premises and equipment	146			126
Other assets	1,317			1,365
Total assets	$	270,857		$	242,316
Liabilities and Shareholders' Equity
Subordinated debentures owed to unconsolidated subsidiary trusts	$	19,589		$	19,589
Other liabilities	3,504			2,897
Total liabilities	23,093			22,486
Preferred stock, $1.00 par value, authorized 250,000 shares	—			—
Common stock and related surplus, $2.50 par value, authorized
20,000,000 shares; issued: 12,474,641 shares 2019, 12,399,887 shares 2018; outstanding: 12,408,542 shares 2019, 12,312,933 shares 2018	80,084			80,431
Unallocated common stock held by Employee Stock Ownership Plan - 2019 - 66,099 shares, 2018 - 86,954 shares	(714		)	(939		)
Retained earnings	165,859			141,354
Accumulated other comprehensive income (loss)	2,535			(1,016		)
Total shareholders' equity	247,764			219,830
Total liabilities and shareholders' equity	$	270,857		$	242,316

Statements of Income
	For the Year Ended December 31,
Dollars in thousands	2019			2018			2017
Income
Dividends from subsidiaries	$	16,757		$	10,600		$	6,500
Other dividends and interest income	54			28			24
Management and service fees from subsidiaries	1,542			1,555			1,964
Total income	18,353			12,183			8,488
Expense
Interest expense	949			899			714
Operating expenses	3,755			2,565			2,462
Total expenses	4,704			3,464			3,176
Income before income taxes and equity in
undistributed income of subsidiaries	13,649			8,719			5,312
Income tax (benefit)	(276		)	(374		)	(129		)
Income before equity in undistributed income of subsidiaries	13,925			9,093			5,441
Equity in undistributed income of subsidiaries	17,941			18,979			6,474
Net income	$	31,866		$	28,072		$	11,915

Statements of Cash Flows
	For the Year Ended December 31,
Dollars in thousands	2019			2018			2017
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$	31,866		$	28,072		$	11,915
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in undistributed net income of subsidiaries	(17,941		)	(18,979		)	(6,474		)
Deferred tax (benefit) expense	(18		)	(8		)	346
Depreciation	50			41			39
Share-based compensation expense	274			181			174
Earnings on bank owned life insurance	—			7			(1		)
Decrease (increase) in other assets	491			(375		)	535
Increase in other liabilities	807			1,036			512
Net cash provided by operating activities	15,529			9,975			7,046
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of premises and equipment	(123		)	(86		)	(92		)
Proceeds from sale of premises and equipment	53			13			60
Net cash used in investing activities	(70		)	(73		)	(32		)
CASH FLOWS FROM FINANCING ACTIVITIES
Dividends paid on common stock	(7,361		)	(6,545		)	(5,238		)
Exercise of stock options	7			122			303
Repayment of long-term borrowings	—			—			(902		)
Purchase and retirement of common stock	(10,405		)	(1,689		)	—
Proceeds from issuance of common stock, net of issuance costs	159			237			10
Net cash used in financing activities	(17,600		)	(7,875		)	(5,827		)
(Decrease) increase in cash	(2,141		)	2,027			1,187
Cash:
Beginning	4,326			2,299			1,112
Ending	$	2,185		$	4,326		$	2,299
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Cash payments for:
Interest	$	961		$	875		$	704

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Basis of Presentation

12 Months Ended

Dec. 31, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation

BASIS OF PRESENTATION

We are a financial holding company headquartered in Moorefield, West Virginia.  We offer community banking and trust and wealth management services through our community bank subsidiary, Summit Community Bank (“Summit Community”). We provide commercial and retail banking services primarily in the Eastern Panhandle, Southern and North Central regions of West Virginia and the Northern, Shenandoah Valley and Southwestern regions of Virginia.  

Our accounting and reporting policies conform to accounting principles generally accepted in the United States of America and to general practices within the banking industry.

Use of estimates:  We must make estimates and assumptions that affect the reported amounts and disclosures in preparing our financial statements in conformity with accounting principles generally accepted in the United States of America.  Actual results could differ significantly from those estimates.

Principles of consolidation:  The accompanying consolidated financial statements include the accounts of Summit and its wholly-owned subsidiary.  All significant accounts and transactions among these entities have been eliminated.

Comprehensive income: Comprehensive income consists of net income and other comprehensive income. Other comprehensive income includes unrealized gains and losses on securities available for sale, cash flow hedges, other post-retirement benefits and pension plans, which are recognized as separate components of equity.

Cash and cash equivalents:  Cash and cash equivalents includes cash on hand, amounts due from banks (including cash items in process of clearing), interest bearing deposits with other banks and federal funds sold.

Loans held for sale: Loans held for sale are valued at the lower of aggregate carrying cost or fair value. Gains or losses realized on the sales of loans are recognized in other income at the time of sale.

Cash surrender value of life insurance policies: We have purchased life insurance policies on certain employees. Company owned life insurance is recorded at the amount that can be realized under the insurance contract at the balance sheet date, which is the cash surrender value adjusted for other charges or other amounts due that are probable at settlement.

Presentation of cash flows:  For purposes of reporting, cash flows from demand deposits, NOW accounts, savings accounts and short-term borrowings are reported on a net basis, since their original maturities are less than three months.  Cash flows from loans and certificates of deposit and other time deposits are reported net.

Advertising:  Advertising costs are expensed as incurred.

Trust services:  Assets held in an agency or fiduciary capacity are not our assets and are not included in the accompanying consolidated balance sheets.  Trust services income is recognized on the cash basis in accordance with customary banking practice.  Reporting such income on a cash basis does not produce results that are materially different from those that would result from use of the accrual basis.

Transfer of Financial Assets:Transfers of financial assets are accounted for as sales, when control over the assets has been relinquished. Control over transferred assets is deemed to be surrendered when the assets have been isolated from us, the transferee obtains the right (free of condition that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and we do not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity date.

Unconsolidated subsidiary trusts:  In accordance with accounting principles generally accepted in the United States, we do not consolidate subsidiary trusts which issue guaranteed preferred beneficial interests in subordinated debentures (Trust Preferred Securities).  The Trust Preferred Securities qualify as Tier 1 capital for regulatory purposes. See Note 13 of our Notes to Consolidated Financial Statements for a discussion of our subordinated debentures owed to unconsolidated subsidiary trusts.

Significant accounting policies:  The following table identifies our other significant accounting policies and the Note and page where a detailed description of each policy can be found.

Acquisitions	Note 3	Page 54
Fair Value Measurements	Note 4	Page 56
Debt Securities	Note 5	Page 60
Other Investments	Note 6	Page 64
Loans	Note 7	Page 64
Allowance for Loan Losses	Note 8	Page 73
Property Held for Sale	Note 9	Page 76
Premises and Equipment	Note 10	Page 76
Goodwill and Other Intangible Assets	Note 11	Page 76
Securities Sold Under Agreements to Repurchase	Note 13	Page 78
Derivative Financial Instruments	Note 14	Page 79
Income Taxes	Note 15	Page 81
Employee Benefit Plans	Note 16	Page 83
Share-Based Compensation	Note 16	Page 83
Earnings Per Share	Note 19	Page 87
Accumulated Other Comprehensive Income	Note 20	Page 88
Revenue Recognition	Note 21	Page 88

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Accumulated Other Comprehensive Income (Loss) Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated Other Comprehensive Income (Loss), Net of Tax	$ 2,535	$ (1,016)	$ 1,732
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax	5,024	(2,275)
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax	(1,473)	(473)
Other Comprehensive Income (Loss), Net of Tax	3,551	(2,748)	4,696
Accumulated Pension Plan Adjustment Net Unamortized Gain Loss [Domain]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated Other Comprehensive Income (Loss), Net of Tax	(140)	0
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax	(140)
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax	0
Other Comprehensive Income (Loss), Net of Tax	(140)
Accumulated Defined Benefit Plans Adjustment, Net Gain (Loss) Attributable to Parent [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated Other Comprehensive Income (Loss), Net of Tax	48	139	398
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax	(91)	(259)
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax	0	0
Other Comprehensive Income (Loss), Net of Tax	(91)	(259)
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated Other Comprehensive Income (Loss), Net of Tax	(518)	(314)	(1,564)
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax	(204)	1,250
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax	0	0
Other Comprehensive Income (Loss), Net of Tax	(204)	1,250
Accumulated Net Investment Gain (Loss) Attributable to Parent [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated Other Comprehensive Income (Loss), Net of Tax	3,145	(841)	$ 2,898
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax	5,459	(3,266)
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax	(1,473)	(473)
Other Comprehensive Income (Loss), Net of Tax	$ 3,986	$ (3,739)

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Condensed Financial Statements Of Parent Company (Statements Of Cash Flows) (Details) - USD ($) $ in Thousands		12 Months Ended
	Dec. 22, 2017	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
CASH FLOWS FROM OPERATING ACTIVITIES
Net income		$ 31,866	$ 28,072	$ 11,915
Adjustments to reconcile net earnings to net cash
Deferred tax (benefit) expense	$ 3,500	103	(349)	4,076
Depreciation		2,614	2,168	1,887
Realized securities losses		(1,938)	(622)	14
Share-based compensation expense		590	391	385
Earnings on bank owned life insurance		(1,148)	(1,028)	(707)
(Increase) decrease in other assets		133	(320)	668
Increase in other liabilities		4,478	3,384	510
Net cash provided by operating activities		40,927	38,521	24,373
Proceeds from Sale of Debt Securities, Available-for-sale		142,423	107,559	152,882
CASH FLOWS FROM INVESTING ACTIVITIES
Principal payments received on securities available for sale		22,870	24,814	31,902
Purchases of premises and equipment		(9,218)	(5,545)	(6,185)
Proceeds from disposal of premises and equipment		860	42	0
Net cash provided by (used in) investing activities		(77,570)	(71,735)	13,969
CASH FLOWS FROM FINANCING ACTIVITIES
Payments of Ordinary Dividends, Common Stock		(7,361)	(6,545)	(5,238)
Exercise of stock options		7	122	303
Repayment of long-term borrowings		(18)	(45,016)	(918)
Payments for Repurchase of Common Stock		(10,405)	(1,689)	0
Proceeds from issuance of common stock, net of issuance costs		159	237	10
Net cash provided by (used in) financing activities		38,991	40,123	(32,327)
Cash and Cash Equivalents, at Carrying Value		61,888	59,540	52,631	$ 46,616
Supplemental Disclosures of Cash Flow Information
Interest Paid, Excluding Capitalized Interest, Operating Activities		29,855	25,426	18,201
Parent Company [Member]
CASH FLOWS FROM OPERATING ACTIVITIES
Net income		31,866	28,072	11,915
Adjustments to reconcile net earnings to net cash
Equity in undistributed net income of subsidiaries		(17,941)	(18,979)	(6,474)
Deferred tax (benefit) expense		(18)	(8)	346
Depreciation		50	41	39
Share-based compensation expense		274	181	174
Earnings on bank owned life insurance		0	7	(1)
(Increase) decrease in other assets		491	(375)	535
Increase in other liabilities		807	1,036	512
Net cash provided by operating activities		15,529	9,975	7,046
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of premises and equipment		(123)	(86)	(92)
Proceeds from disposal of premises and equipment		53	13	60
Net cash provided by (used in) investing activities		(70)	(73)	(32)
CASH FLOWS FROM FINANCING ACTIVITIES
Payments of Ordinary Dividends, Common Stock		(7,361)	(6,545)	(5,238)
Exercise of stock options		7	122	303
Repayment of long-term borrowings		0	0	(902)
Payments for Repurchase of Common Stock		(10,405)	(1,689)	0
Proceeds from issuance of common stock, net of issuance costs		159	237	10
Net cash provided by (used in) financing activities		(17,600)	(7,875)	(5,827)
(Decrease) increase in cash		(2,141)	2,027	1,187
Cash and Cash Equivalents, at Carrying Value		2,185	4,326	2,299	$ 1,112
Cash, Ending Balance		2,185	4,326
Supplemental Disclosures of Cash Flow Information
Interest Paid, Excluding Capitalized Interest, Operating Activities		$ 961	$ 875	$ 704

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Securities

12 Months Ended

Dec. 31, 2019

Debt Securities, Available-for-sale [Abstract]

Securities

 DEBT SECURITIES

We classify debt securities as “held to maturity”, “available for sale” or “trading” according to management’s intent.  The appropriate classification is determined at the time of purchase of each security and re-evaluated at each reporting date.

Securities held to maturity: Certain debt securities for which we have the positive intent and ability to hold to maturity are reported at cost, adjusted for amortization of premiums and accretion of discounts.  There are no securities classified as held to maturity in the accompanying financial statements.

Securities available for sale: Securities not classified as "held to maturity" or as "trading" are classified as "available for sale."  Securities classified as "available for sale" are those securities that we intend to hold for an indefinite period of time, but not necessarily to maturity.  "Available for sale" securities are reported at estimated fair value net of unrealized gains or losses, which are adjusted for applicable income taxes and reported as a separate component of shareholders' equity.

Trading securities: There are no securities classified as "trading" in the accompanying financial statements.

Impairment assessment:  Impairment exists when the fair value of a security is less than its cost.  Cost includes adjustments made to the cost basis of a security for accretion, amortization and previous other-than-temporary impairments.  We perform a quarterly assessment of the debt securities in our investment portfolio that have an unrealized loss to determine whether the decline in the fair value of these securities below their cost is other-than-temporary.  This determination requires significant judgment.  Impairment is considered other-than-temporary when it becomes probable that we will be unable to recover the cost of an investment.  This assessment takes into consideration factors such as the length of time and the extent to which the market values have been less than cost, the financial condition and near term prospects of the issuer including events specific to the issuer or industry, defaults or deferrals of scheduled interest, principal or dividend payments, external credit ratings and recent downgrades and our intent and ability to hold the security for a period of time sufficient to allow for a recovery in fair value.  If a decline in fair value is judged to be other than temporary, the cost basis of the individual security is written down to fair value which then becomes the new cost basis.  The amount of the write down is included in other-than-temporary impairment of securities in the consolidated statements of income.  The new cost basis is not adjusted for subsequent recoveries in fair value, if any.

Realized gains and losses on sales of securities are recognized on the specific identification method.  Amortization of premiums and accretion of discounts are computed using the interest method.

The amortized cost, unrealized gains, unrealized losses and estimated fair values of securities at December 31, 2019 and 2018, are summarized as follows:

	December 31, 2019
	Amortized		Unrealized
Dollars in thousands	Cost		Gains		Losses		Fair Value
Available for Sale
Taxable debt securities
U.S. Government and agencies and corporations	$	21,036	$	212	$	384	$	20,864
Residential mortgage-backed securities:
Government-sponsored agencies	70,379		1,031		435		70,975
Nongovernment-sponsored entities	10,253		17		41		10,229
State and political subdivisions
General obligations	12,603		25		171		12,457
Water and sewer revenues	7,170		71		114		7,127
Lease revenues	5,310		25		77		5,258
University revenues	5,917		164		16		6,065
Other revenues	18,831		344		109		19,066
Corporate debt securities	18,268		81		149		18,200
Asset-backed securities	33,826		—		812		33,014
Total taxable debt securities	203,593		1,970		2,308		203,255
Tax-exempt debt securities
State and political subdivisions
General obligations	36,673		2,526		—		39,199
Water and sewer revenues	9,565		633		—		10,198
Lease revenues	8,455		598		—		9,053
Other revenues	13,929		728		7		14,650
Total tax-exempt debt securities	68,622		4,485		7		73,100
Total available for sale securities	$	272,215	$	6,455	$	2,315	$	276,355

	December 31, 2018
	Amortized		Unrealized
Dollars in thousands	Cost		Gains		Losses		Fair Value
Available for Sale
Taxable debt securities
U.S. Government and agencies and corporations	$	26,303	$	203	$	366	$	26,140
Residential mortgage-backed securities:
Government-sponsored agencies	80,883		603		1,177		80,309
Nongovernment-sponsored entities	611		4		1		614
State and political subdivisions
General obligations	6,081		—		126		5,955
Other revenues	13,457		17		186		13,288
Corporate debt securities	14,807		9		304		14,512
Asset-backed securities	25,288		10		123		25,175
Total taxable debt securities	167,430		846		2,283		165,993
Tax-exempt debt securities
State and political subdivisions
General obligations	65,626		624		344		65,906
Water and sewer revenues	20,018		225		98		20,145
Lease revenues	10,980		135		7		11,108
Other revenues	30,197		77		279		29,995
Total tax-exempt debt securities	126,821		1,061		728		127,154
Total available for sale securities	$	294,251	$	1,907	$	3,011	$	293,147

The below information is relative to the five states where issuers with the highest volume of state and political subdivision securities held in our portfolio are located.  We own no such securities of any single issuer which we deem to be a concentration.

	December 31, 2019
	Amortized		Unrealized
Dollars in thousands	Cost		Gains		Losses		Fair Value
California	$	21,194	$	1,109	$	128	$	22,175
Michigan	10,864		623		—		11,487
Illinois	9,245		410		—		9,655
Texas	8,934		344		64		9,214
West Virginia	8,490		206		7		8,689

Management performs pre-purchase and ongoing analysis to confirm that all investment securities meet applicable credit quality standards.  We principally use credit ratings from Nationally Recognized Statistical Rating Organizations (“NRSROs”) to support analyses of our portfolio of securities issued by state and political subdivisions, as we generally do not purchase securities that are rated below the six highest NRSRO rating categories.  In addition to considering a security’s NRSRO rating, we also assess or confirm through an internal review of an issuer’s financial information and other applicable information that:  1) the issuer’s risk of default is low; 2) the characteristics of the issuer’s demographics and economic environment are satisfactory; and 3) the issuer’s budgetary position and stability of tax or other revenue sources are sound.

The proceeds from sales, calls and maturities of available for sale securities, including principal payments received on mortgage-backed obligations, and the related gross gains and losses realized are as follows:

Dollars in thousands	Proceeds from						Gross realized
			Calls and		Principal
Years ended December 31,	Sales		Maturities		Payments		Gains		Losses
2019	$	142,423	$	1,871	$	22,870	$	2,270	$	332
2018	107,559		1,145		24,814		1,785		1,163
2017	152,882		2,700		31,902		685		699

Residential mortgage-backed obligations having contractual maturities ranging from 5 to 50 years are included in the following maturity distribution schedules based on their anticipated average life to maturity, which ranges from 1 month to 32 years.  Accordingly, discounts are accreted and premiums are amortized over the anticipated average life to maturity of the specific obligation.

The maturities, amortized cost and estimated fair values of securities at December 31, 2019, are summarized as follows:

Dollars in thousands	Amortized Cost		Fair Value
Due in one year or less	$	29,692	$	29,768
Due from one to five years	79,060		79,170
Due from five to ten years	60,439		60,627
Due after ten years	103,024		106,790
Total	$	272,215	$	276,355

At December 31, 2019 and 2018, securities with estimated fair values of $86.1 million and $58.6 million respectively, were pledged to secure public deposits and for other purposes required or permitted by law.

We held 88 available for sale securities having an unrealized loss at December 31, 2019.  We do not intend to sell these securities and it is more likely than not that we will not be required to sell these securities before recovery of their amortized cost bases.  We believe that this decline in value is primarily attributable to the lack of market liquidity and to changes in market interest rates and not due to credit quality.  Accordingly, no other-than-temporary impairment charge to earnings is warranted at this time.

Provided below is a summary of securities available for sale which were in an unrealized loss position at December 31, 2019 and 2018.

	2019
		Less than 12 months				12 months or more				Total
Dollars in thousands	# of securities in loss position	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
Taxable debt securities
U.S. Government agencies and corporations	15	$	—	$	—	$	14,903	$	384	$	14,903	$	384
Residential mortgage-backed securities:
Government-sponsored agencies	21	12,298		96		15,174		339		27,472		435
Nongovernment-sponsored entities	4	8,323		41		—		—		8,323		41
State and political subdivisions:
General obligations	10	10,581		171		—		—		10,581		171
Water and sewer revenues	4	4,421		114		—		—		4,421		114
Lease revenues	4	4,235		77		—		—		4,235		77
University revenues	1	1,307		16		—		—		1,307		16
Other revenues	6	6,517		109		—		—		6,517		109
Corporate debt securities	6	1,686		3		3,739		146		5,425		149
Asset-backed securities	15	3,441		34		29,573		778		33,014		812
Tax-exempt debt securities
State and political subdivisions:
Other revenues	2	1,183		7		—		—		1,183		7
Total	88	$	53,992	$	668	$	63,389	$	1,647	$	117,381	$	2,315

	2018
		Less than 12 months				12 months or more				Total
Dollars in thousands	# of securities in loss position	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
Taxable debt securities
U.S. Government agencies and corporations	15	$	12,185	$	184	$	7,464	$	182	$	19,649	$	366
Residential mortgage-backed securities:
Government-sponsored agencies	37	23,277		241		24,472		936		47,749		1,177
Nongovernment-sponsored entities	1	—		—		436		1		436		1
State and political subdivisions:
General obligations	8	—		—		5,222		126		5,222		126
Other revenues	11	968		16		9,450		170		10,418		186
Corporate debt securities	7	2,759		109		4,587		195		7,346		304
Asset-backed securities	9	20,129		123		—		—		20,129		123
Tax-exempt debt securities
State and political subdivisions:
General obligations	25	7,273		50		16,830		294		24,103		344
Water and sewer revenues	7	989		6		4,311		92		5,300		98
Lease revenues	2	553		—		557		7		1,110		7
Other revenues	12	7,309		62		11,531		217		18,840		279
Total	134	$	75,442	$	791	$	84,860	$	2,220	$	160,302	$	3,011

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Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands	Total	Common Stock and Related Surplus [Member]	Unearned ESOP Shares [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive Income [Member]
Beginning Balance at Dec. 31, 2016	$ 155,360	$ 46,757	$ (1,583)	$ 113,448	$ (3,262)
Comprehensive income:
Net income	11,915			11,915
Other comprehensive income	4,696				4,696
Tax Cuts and Jobs Act of 2017 Reclassification from AOCI to Retained Earnings	0			(298)	298
Exercise of stock options	304	304
Stock compensation expense	385	385
Stock Issued During Period, Value, Employee Stock Ownership Plan	946	515	431
Stock Issued During Period, Value, Acquisitions	32,968	32,968
Stock Issued During Period, Value, Dividend Reinvestment Plan	169	169
Dividends, Common Stock, Cash	(5,238)			(5,238)
Ending Balance at Dec. 31, 2017	201,505	81,098	(1,152)	119,827	1,732
Comprehensive income:
Net income	28,072			28,072
Other comprehensive income	(2,748)				(2,748)
Exercise of stock options	122	122
Stock compensation expense	391	391
Stock Issued During Period, Value, Employee Stock Ownership Plan	485	272	213
Stock Repurchased and Retired During Period, Value	(1,689)	(1,689)
Stock Issued During Period, Value, Dividend Reinvestment Plan	237	237
Dividends, Common Stock, Cash	(6,545)			(6,545)
Ending Balance at Dec. 31, 2018	219,830	80,431	(939)	141,354	(1,016)
Comprehensive income:
Net income	31,866			31,866
Other comprehensive income	3,551				3,551
Exercise of stock options	7	7
Stock compensation expense	590	590
Stock Issued During Period, Value, Employee Stock Ownership Plan	530	305	225
Stock Repurchased and Retired During Period, Value	(10,405)	(10,405)
Stock Issued During Period, Value, Acquisitions	8,918	8,918
Stock Issued During Period, Value, Dividend Reinvestment Plan	238	238
Dividends, Common Stock, Cash	(7,361)			(7,361)
Ending Balance at Dec. 31, 2019	$ 247,764	$ 80,084	$ (714)	$ 165,859	$ 2,535

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Consolidated Balance Sheets (Parenthetical) - $ / shares	Dec. 31, 2019	Dec. 31, 2018
Preferred stock, shares authorized	250,000	250,000
Preferred stock, par value	$ 1.00	$ 1.00
Common stock, par value	$ 2.50	$ 2.50
Common stock, shares authorized	20,000,000	20,000,000
Common stock, shares issued	12,474,641	12,399,887
Common stock, shares outstanding	12,408,542	12,312,933
Employee Stock Ownership Plan (ESOP), Number of Suspense Shares	66,099	86,954

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Property Held For Sale

12 Months Ended

Dec. 31, 2019

Property, Plant and Equipment Assets Held-for-sale Disclosure [Abstract]

Property Held For Sale

PROPERTY HELD FOR SALE

Property held for sale consists of premises held for sale and real estate acquired through foreclosure on loans secured by such real estate.  Qualifying premises are transferred to property held for sale at estimated fair value less anticipated selling costs, establishing a new cost basis.  Foreclosed properties are recorded at the lower of the investment in the real estate or estimated fair value less anticipated selling costs based upon the property’s appraised value at the date of foreclosure, with any difference between the fair value of foreclosed property and the carrying value of the related loan charged to the allowance for loan losses.  We perform periodic valuations of property held for sale subsequent to transfer.  Changes in value subsequent to transfer are recorded in noninterest expense.  Gains or losses resulting from the sale of property held for sale is recognized on the date of sale and is included in noninterest expense.  Depreciation is not recorded on property held for sale.  Expenses incurred in connection with operating foreclosed properties are charged to noninterest expense.

The following table presents the activity of property held for sale during 2019, 2018 and 2017.

Dollars in thousands	2019			2018			2017
Beginning balance	$	21,432		$	21,470		$	24,504
Acquisitions	4,549			1,804			363
Acquisition of FCB	—			—			2,377
Capitalized improvements	512			1,304			316
Dispositions	(5,142		)	(2,370		)	(5,205		)
Valuation adjustments	(2,075		)	(776		)	(885		)
Balance at year end	$	19,276		$	21,432		$	21,470

At December 31, 2019, our foreclosed properties of consumer residential real estate totaled $1.6 million.

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Borrowed Funds

12 Months Ended

Dec. 31, 2019

Debt Disclosure [Abstract]

Borrowed Funds

BORROWED FUNDS

Our subsidiary bank is a member of the Federal Home Loan Bank (“FHLB”).  Membership in the FHLB makes available short-term and long-term advances under collateralized borrowing arrangements with each subsidiary bank.  All FHLB advances are collateralized by a blanket lien of $1.16 billion of residential mortgage loans, certain commercial loans, mortgage backed securities and securities of U. S. Government agencies and corporations.  We had $149.3 million available on a short term line of credit with the Federal Reserve Bank at December 31, 2019, which is primarily secured by a pledge of $283.0 million of our consumer loans, construction loans and commercial and industrial loan portfolios. We also had $6 million available on an unsecured line of credit with a correspondent bank.

At December 31, 2019, our subsidiary bank had additional borrowings availability of $609.3 million from the FHLB.  Short-term FHLB advances are granted for terms of 1 to 365 days and bear interest at a fixed or variable rate set at the time of the funding request.

Short-term borrowings:  At December 31, 2019, we had $155.3 million borrowing availability through credit lines and Federal funds purchased agreements.  Federal funds purchased mature the next business day.  A summary of short-term borrowings is presented below.

	2019						2018
Dollars in thousands	Short-term FHLB Advances			Federal Funds Purchased			Short-term FHLB Advances			Federal Funds Purchased
Balance at December 31	$	199,200		$	145		$	303,950		$	5,134
Average balance outstanding for the period	193,992			458			223,764			4,378
Maximum balance outstanding at any month end during period	237,400			145			303,950			7,534
Weighted average interest rate for the period	2.48		%	2.43		%	2.18		%	1.95		%
Weighted average interest rate for balances
outstanding at December 31	1.83		%	1.75		%	2.71		%	2.50		%

Long-term borrowings:  Our long-term borrowings of $717,000 and $735,000 at December 31, 2019 and 2018, respectively, consisted of a fixed rate advance from the Federal Home Loan Bank (“FHLB”) maturing in 2026. The average interest rate paid on long-term borrowings during 2019 was 5.34% compared to 4.26% in 2018.

Subordinated debentures owed to unconsolidated subsidiary trusts:  We have three statutory business trusts that were formed for the purpose of issuing mandatorily redeemable securities (the “capital securities”) for which we are obligated to third party investors and investing the proceeds from the sale of the capital securities in our junior subordinated debentures (the “debentures”).  The debentures held by the trusts are their sole assets.  Our subordinated debentures totaled $19.6 million at December 31, 2019 and 2018.

In October 2002, we sponsored SFG Capital Trust I, in March 2004, we sponsored SFG Capital Trust II and in December 2005, we sponsored SFG Capital Trust III, of which 100% of the common equity of each trust is owned by us.  SFG Capital Trust I issued $3.5 million in capital securities and $109,000 in common securities and invested the proceeds in $3.61 million of debentures. SFG Capital Trust II issued $7.5 million in capital securities and $232,000 in common securities and invested the proceeds in $7.73 million of debentures. SFG Capital Trust III issued $8.0 million in capital securities and $248,000 in common securities and invested the proceeds in $8.25 million of debentures.  Distributions on the capital securities issued by the trusts are payable quarterly at a variable interest rate equal to 3 month LIBOR plus 345 basis points for SFG Capital Trust I, 3 month LIBOR plus 280 basis points for SFG Capital Trust II and 3 month LIBOR plus 145 basis points for SFG Capital Trust III and equals the interest rate earned on the debentures held by the trusts and is recorded as interest expense by us.  The capital securities are subject to mandatory redemption in whole or in part, upon repayment of the debentures.  We have entered into agreements which, taken collectively, fully and unconditionally guarantee the capital securities subject to the terms of the guarantee.  The debentures of each Capital Trust are redeemable by us quarterly.

The capital securities held by SFG Capital Trust I, SFG Capital Trust II and SFG Capital Trust III qualify as Tier 1 capital under Federal Reserve Board guidelines.  In accordance with these Guidelines, trust preferred securities generally are limited to 25% of Tier 1 capital elements, net of goodwill.  The amount of trust preferred securities and certain other elements in excess of the limit can be included in Tier 2 capital.

A summary of the maturities of all long-term borrowings and subordinated debentures for the next five years and thereafter is as follows:

Dollars in thousands	Long-term borrowings		Subordinated debentures owed to unconsolidated subsidiary trusts
2020	$	19	$	—
2021	19		—
2022	21		—
2023	22		—
2024	23		—
Thereafter	613		19,589
Total	$	717	$	19,589

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Employee Benefits (Summary Of Activity In Stock Option Plans) (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Options / SARs
Outstanding Options, Exercised	(17,366)	(6,800)	(36,925)
Employee Stock Option and Stock Appreciation Rights (SARs) [Member]
Options / SARs
Outstanding Options, Beginning Balance	232,091	250,291	217,857
Outstanding Options, Granted	138,125	0	87,615
Outstanding Options, Exercised	(31,613)	(6,800)	(51,781)
Outstanding Options, Forfeited	0	(3,200)	0
Outstanding Options, Expired	(7,900)	(8,200)	(3,400)
Outstanding Options, Ending Balance	330,703	232,091	250,291
Exercise Price
Outstanding, Weighted-Average Exercise Price, Beginning Balance	$ 17.36	$ 17.75	$ 13.56
Outstanding, Weighted-Average Exercise Price, Granted	23.94	0.00	26.01
Outstanding, Weighted-Average Exercise Price, Exercised	11.83	17.79	13.62
Outstanding, Weighted-Average Exercise Price, Forfeited	0.00	25.50	0.00
Outstanding, Weighted-Average Exercise Price, Expired	25.83	25.54	24.97
Outstanding, Weighted-Average Exercise Price, Ending Balance	$ 20.44	$ 17.36	$ 17.75
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value	$ 2,200
Options Outstanding, Wted. Avg. Remaining Contractual Life (yrs)	7 years 3 months 29 days
Exercisable Options, Ending Balance	104,889	95,924	62,646
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value	$ 1,203	$ 583	$ 687
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Exercisable Options, Weighted Average Remaining Contractual Term	5 years 8 months 27 days	6 years 15 days	4 years 11 months 1 day
Exercisable Options, Weighted-Average Exercise Price, Ending Balance	$ 15.62	$ 14.82	$ 15.35

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Regulatory Matters (Narrative) (Details) - USD ($)	Dec. 31, 2020	Dec. 31, 2019
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Required reserve balance		$ 1,992,000
Scenario, Forecast [Member]
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Amount Available for Dividend Distribution without Affecting Capital Adequacy Requirements	$ 41,600,000

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Commitments and Contingencies

12 Months Ended

Dec. 31, 2019

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

COMMITMENTS AND CONTINGENCIES

Off-Balance Sheet Arrangements

We are a party to certain financial instruments with off-balance-sheet risk in the normal course of business to meet the financing needs of our customers.  These instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the statement of financial position.  The contract amounts of these instruments reflect the extent of involvement that we have in this class of financial instruments.

Many of our lending relationships contain both funded and unfunded elements.  The funded portion is reflected on our balance sheet.  The unfunded portion of these commitments is not recorded on our balance sheet until a draw is made under the loan facility.  Since many of the commitments to extend credit may expire without being drawn upon, the total commitment amounts do not necessarily represent future cash flow requirements.

A summary of the total unfunded, or off-balance sheet, credit extension commitments follows:

Dollars in thousands	December 31, 2019		December 31, 2018
Commitments to extend credit:
Revolving home equity and credit card lines	$	69,200	$	69,893
Construction loans	119,456		85,392
Other loans	225,637		161,619
Standby letters of credit	12,078		6,366
Total	$	426,371	$	323,270

Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract.  Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee.  We evaluate each customer's credit worthiness on a case-by-case basis.  The amount of collateral obtained, if we deem necessary upon extension of credit, is based on our credit evaluation.  Collateral held varies but may include accounts receivable, inventory, equipment or real estate.

Standby letters of credit are conditional commitments issued to guarantee the performance of a customer to a third party.  Standby letters of credit generally are contingent upon the failure of the customer to perform according to the terms of the underlying contract with the third party and generally are of a term of no greater than one year.

Our exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit is represented by the contractual amount of those instruments.  We use the same credit policies in making commitments and conditional obligations as we do for on-balance sheet instruments.

Employment Agreements

We have various employment agreements with our executive officers and other key employees.  These agreements contain change in control provisions that would entitle the officers to receive compensation in the event there is a change in control in the Company (as defined) and a termination of their employment without cause (as defined).

Legal Contingencies

On April 24, 2017, Summit entered into a Settlement and Release Agreement (the “Settlement Agreement”) with the Residential Funding Corporation ("RFC") and paid $9.9 million to fully resolve all claims by RFC and its successor, and to avoid the further costs, disruption, and distraction of defending the RFC lawsuits.  Summit recorded a charge to noninterest expense in its consolidated statement of income for the year December 31, 2017 to recognize this settlement.  

We are not a party to any other litigation except for matters that arise in the normal course of business.  While it is impossible to ascertain the ultimate resolution or range of financial liability, if any, with respect to these contingent matters, in the opinion of management, the outcome of these matters will not have a significant adverse effect on the consolidated financial statements.

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Goodwill And Other Intangible Assets (Summary Of Other Intangible Assets) (Details) - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Identifiable intangible assets [Abstract]
Gross carrying amount	$ 14,727,000	$ 15,598,000
Less: accumulated amortization	4,363,000	5,028,000
Net carrying amount	10,360,000	10,570,000
Community Banking [Member]
Identifiable intangible assets [Abstract]
Gross carrying amount	14,727,000	12,598,000
Less: accumulated amortization	4,363,000	2,728,000
Net carrying amount	10,364,000	9,870,000
Insurance Services [Member]
Identifiable intangible assets [Abstract]
Gross carrying amount	0	3,000,000
Less: accumulated amortization	0	2,300,000
Net carrying amount	$ 0	$ 700,000

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Securities (Summary Of Amortized Cost, Unrealized Gains, Unrealized Losses And Estimated Fair Values) (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Debt Securities, Available-for-sale [Line Items]
Total Amortized Cost	$ 272,215	$ 294,251
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax	6,455	1,907
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax	2,315	3,011
Debt Securities, Available-for-sale	276,355	293,147
U.S. Government and agencies and corporations [Member]
Debt Securities, Available-for-sale [Line Items]
Total Amortized Cost	21,036	26,303
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax	212	203
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax	384	366
Debt Securities, Available-for-sale	20,864	26,140
Government-sponsored agencies [Member]
Debt Securities, Available-for-sale [Line Items]
Total Amortized Cost	70,379	80,883
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax	1,031	603
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax	435	1,177
Debt Securities, Available-for-sale	70,975	80,309
Nongovernment-sponsored entities [Member]
Debt Securities, Available-for-sale [Line Items]
Total Amortized Cost	10,253	611
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax	17	4
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax	41	1
Debt Securities, Available-for-sale	10,229	614
State and Political Subdivisions General Obligations [Member]
Debt Securities, Available-for-sale [Line Items]
Total Amortized Cost	12,603	6,081
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax	25	0
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax	171	126
Debt Securities, Available-for-sale	12,457	5,955
State and Policital Subdivisions Water and Sewer Revenues [Member]
Debt Securities, Available-for-sale [Line Items]
Total Amortized Cost	7,170
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax	71
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax	114
Debt Securities, Available-for-sale	7,127
State and Political Subdivisions Lease Revenues [Member]
Debt Securities, Available-for-sale [Line Items]
Total Amortized Cost	5,310
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax	25
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax	77
Debt Securities, Available-for-sale	5,258
State and Political Subdivisions University Revenues [Member]
Debt Securities, Available-for-sale [Line Items]
Total Amortized Cost	5,917
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax	164
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax	16
Debt Securities, Available-for-sale	6,065
State and policital subdivisions, Other revenues [Member]
Debt Securities, Available-for-sale [Line Items]
Total Amortized Cost	18,831	13,457
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax	344	17
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax	109	186
Debt Securities, Available-for-sale	19,066	13,288
Corporate debt securities [Member]
Debt Securities, Available-for-sale [Line Items]
Total Amortized Cost	18,268	14,807
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax	81	9
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax	149	304
Debt Securities, Available-for-sale	18,200	14,512
Asset-backed Securities [Member]
Debt Securities, Available-for-sale [Line Items]
Total Amortized Cost	33,826	25,288
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax	0	10
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax	812	123
Debt Securities, Available-for-sale	33,014	25,175
Total taxable debt securities [Member]
Debt Securities, Available-for-sale [Line Items]
Total Amortized Cost	203,593	167,430
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax	1,970	846
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax	2,308	2,283
Debt Securities, Available-for-sale	203,255	165,993
Tax Exempt State and Political Subdivisions General Obligations [Member]
Debt Securities, Available-for-sale [Line Items]
Total Amortized Cost	36,673	65,626
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax	2,526	624
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax	0	344
Debt Securities, Available-for-sale	39,199	65,906
Tax Exempt State and Political Subdivisions Water and Sewer Revenues [Member]
Debt Securities, Available-for-sale [Line Items]
Total Amortized Cost	9,565	20,018
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax	633	225
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax	0	98
Debt Securities, Available-for-sale	10,198	20,145
Tax Exempt State and Political Subdivisions Lease Revenues [Member]
Debt Securities, Available-for-sale [Line Items]
Total Amortized Cost	8,455	10,980
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax	598	135
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax	0	7
Debt Securities, Available-for-sale	9,053	11,108
Tax Exempt State and Political Subdivisions Other Revenues [Member]
Debt Securities, Available-for-sale [Line Items]
Total Amortized Cost	13,929	30,197
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax	728	77
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax	7	279
Debt Securities, Available-for-sale	14,650	29,995
Total tax-exempt debt securities [Member]
Debt Securities, Available-for-sale [Line Items]
Total Amortized Cost	68,622	126,821
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax	4,485	1,061
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax	7	728
Debt Securities, Available-for-sale	$ 73,100	$ 127,154

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Securities (Narrative) (Details) $ in Millions	12 Months Ended
	Dec. 31, 2019 USD ($) security state	Dec. 31, 2018 USD ($) security
Debt Securities, Available-for-sale [Line Items]
State and Political Subdivisions Securities, Number of States with Highest Volume | state	5
Securities pledged to secure public deposits and other purposes | $	$ 86.1	$ 58.6
Debt Securities, Available-for-sale, Unrealized Loss Position, Number of Positions | security	88	134
Residential Mortgage Backed Securities [Member] | Minimum [Member]
Debt Securities, Available-for-sale [Line Items]
Contractual maturity	5 years
Estimated average life to maturity	1 month
Residential Mortgage Backed Securities [Member] | Maximum [Member]
Debt Securities, Available-for-sale [Line Items]
Contractual maturity	50 years
Estimated average life to maturity	32 years

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Deposits (Summary Of Maturity Distribution Of All Certificates Of Deposit) (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Deposits [Abstract]
Three months or less	$ 54,224
Three through six months	63,734
Six through twelve months	98,912
Over twelve months	170,979
Total	$ 387,849	$ 417,300
Three months or less, percentage	14.00%
Three through six months, percentage	16.40%
Six through twelve months, percentage	25.50%
Over twelve months, percentage	44.10%
Total, percentage	100.00%

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Borrowed Funds (Summary Of Short-Term Borrowings) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Debt Instrument [Line Items]
Balance at December 31	$ 199,345	$ 309,084
Short-term FHLB Advances [Member]
Debt Instrument [Line Items]
Balance at December 31	199,200	303,950
Average balance outstanding for the period	193,992	223,764
Maximum balance outstanding at any month end during period	$ 237,400	$ 303,950
Weighted average interest rate for the period	2.48%	2.18%
Weighted average interest rate for balances outstanding	1.83%	2.71%
Federal Funds Purchased and Lines of Credit [Member]
Debt Instrument [Line Items]
Balance at December 31	$ 145	$ 5,134
Average balance outstanding for the period	458	4,378
Maximum balance outstanding at any month end during period	$ 145	$ 7,534
Weighted average interest rate for the period	2.43%	1.95%
Weighted average interest rate for balances outstanding	1.75%	2.50%

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Loans (Summary Of Loans, Net Of Unearned Fees) (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Net of Deferred Income	$ 1,913,499	$ 1,695,052
Loans and Leases Receivable, Allowance	(13,074)	(13,047)
Loans, net	1,900,425	1,682,005
Commercial Loan [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Net of Deferred Income	207,138	194,315
Owner Occupied [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Net of Deferred Income	276,218	266,362
Non Owner Occupied [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Net of Deferred Income	629,206	564,826
Land And Land Improvements [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Net of Deferred Income	84,112	68,833
Construction Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Net of Deferred Income	37,523	24,731
Non Jumbo [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Net of Deferred Income	354,963	336,977
Jumbo [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Net of Deferred Income	70,947	73,599
Home Equity [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Net of Deferred Income	76,568	80,910
Mortgage Warehouse Lines [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Net of Deferred Income	126,237	39,140
Consumer Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Net of Deferred Income	36,470	32,460
Other Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Net of Deferred Income	$ 14,117	$ 12,899

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Employee Benefits (Tables)

12 Months Ended

Dec. 31, 2019

Employee Benefits and Share-based Compensation, Noncash [Abstract]

Employee Stock Ownership Plan (ESOP) Disclosures

The ESOP shares as of December 31 are as follows:

ESOP Shares	At December 31,
	2019		2018
Allocated shares	440,751		447,424
Shares committed to be released	20,855		19,780
Unallocated shares	66,099		86,954
Total ESOP shares	527,705		554,158
Market value of unallocated shares (in thousands)	$	1,791	$	1,679

Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions

The assumptions used to value SARs granted in 2019 are as follows:

	2019 grant with 7 year expiration		2019 grant with 5 year expiration
Risk-free interest rate	2.51	%	2.43	%
Expected dividend yield	2.30	%	2.30	%
Expected common stock volatility	40.84	%	35.71	%
Expected life	7 years		5.5 years

Schedule of Stock Options, Activity

A summary of SAR and option activity during 2017, 2018 and 2019 is as follows:

					Weighted Average
Dollars in thousands, except per share amounts	Options / SARs		Aggregate Intrinsic Value		Remaining Contractual Term (Yrs.)	Exercise Price
Outstanding, December 31, 2016	217,857					$	13.56
Granted	87,615					26.01
Exercised	(51,781	)				13.62
Forfeited	—					—
Expired	(3,400	)				24.97
Outstanding, December 31, 2017	250,291					$	17.75
Granted	—					—
Exercised	(6,800	)				17.79
Forfeited	(3,200	)				25.50
Expired	(8,200	)				25.54
Outstanding, December 31, 2018	232,091					$	17.36
Granted	138,125					23.94
Exercised	(31,613	)				11.83
Forfeited	—					—
Expired	(7,900	)				25.83
Outstanding, December 31, 2019	330,703		$	2,200	7.33	$	20.44
Exercisable Options/SARs:
December 31, 2019	104,889		$	1,203	5.74	$	15.62
December 31, 2018	95,924		583		6.04	$	14.82
December 31, 2017	62,646		687		4.92	$	15.35

Schedule of Share-based Compensation, Restricted Stock Units Award Activity

A summary of our RSU activity and related information is as follows.

Dollars in thousands, except per share amounts	RSUs	Weighted Average Grant Date Fair Value
Nonvested, December 31, 2018	—	—
Granted	2,892	25.93
Exercised	—	—
Forfeited	—	—
Vested	—	—
Nonvested, December 31, 2019	2,892	25.93

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Deposits (Tables)

12 Months Ended

Dec. 31, 2019

Deposits [Abstract]

Summary Of Interest Bearing Deposits By Type

The following is a summary of interest bearing deposits by type as of December 31, 2019 and 2018:

Dollars in thousands	2019		2018
Demand deposits, interest bearing	$	630,351	$	523,257
Savings deposits	418,096		284,173
Time deposits	604,237		605,276
Total	$	1,652,684	$	1,412,706

Summary Of Scheduled Maturities For All Time Deposits

A summary of the scheduled maturities for all time deposits as of December 31, 2019 is as follows:

Dollars in thousands	Amount
2020	$	336,485
2021	176,029
2022	44,678
2023	17,935
2024	10,661
Thereafter	18,449
Total	$	604,237

Summary Of Maturity Distribution Of All Certificates Of Deposit

The following is a summary of the maturity distribution of all certificates of deposit in denominations of $100,000 or more as of December 31, 2019:

Dollars in thousands	Amount		Percent
Three months or less	$	54,224	14.0	%
Three through six months	63,734		16.4	%
Six through twelve months	98,912		25.5	%
Over twelve months	170,979		44.1	%
Total	$	387,849	100.00	%

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Deposits

12 Months Ended

Dec. 31, 2019

Deposits [Abstract]

Deposits

 DEPOSITS

The following is a summary of interest bearing deposits by type as of December 31, 2019 and 2018:

Dollars in thousands	2019		2018
Demand deposits, interest bearing	$	630,351	$	523,257
Savings deposits	418,096		284,173
Time deposits	604,237		605,276
Total	$	1,652,684	$	1,412,706

Included in time deposits are deposits acquired through a third party (“brokered deposits”) totaling $150.6 million and $220.5 million at December 31, 2019 and 2018, respectively.

A summary of the scheduled maturities for all time deposits as of December 31, 2019 is as follows:

Dollars in thousands	Amount
2020	$	336,485
2021	176,029
2022	44,678
2023	17,935
2024	10,661
Thereafter	18,449
Total	$	604,237

Time certificates of deposit in denominations of $100,000 or more totaled $387.8 million and $417.3 million at December 31, 2019 and 2018, respectively. The following is a summary of the maturity distribution of all certificates of deposit in denominations of $100,000 or more as of December 31, 2019:

Dollars in thousands	Amount		Percent
Three months or less	$	54,224	14.0	%
Three through six months	63,734		16.4	%
Six through twelve months	98,912		25.5	%
Over twelve months	170,979		44.1	%
Total	$	387,849	100.00	%

The aggregate amount of time deposits in denominations that meet or exceed the FDIC insurance limit of $250,000 totaled $198.1 million and $255.8 million at December 31, 2019 and 2018.

At December 31, 2019 and 2018, our deposits of related parties including directors, executive officers and their related interests approximated $31.2 million and $37.1 million.

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Employee Benefits Employee Benefits Schedule of Share-Based Compensation Restricted Stock Awards Activity (Details) - Restricted Stock Units (RSUs) [Member] - $ / shares	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number	2,892	0
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value	$ 25.93	$ 0
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period	2,892
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value	$ 25.93
Share Based Compensation Arrangement by Share-based Payment Award Equity Instruments Other than Options, Exercises in Period	0
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options Exercises in Period Weighted Average Grant Date Fair Value	$ 0
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period	0
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value	$ 0
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period	0
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value	$ 0

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Regulatory Matters (Summary Of Actual Capital Amounts And Ratios) (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Summit [Member]
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Common Equity Tier One Capital	$ 224,679	$ 197,551
Common Equity Tier One Capital Ratio	11.10%	11.10%
Tier I Capital (to risk weighted assets ), Actual Amount	$ 243,679	$ 216,551
Tier I Capital (to risk weighted assets), Actual Ratio	12.10%	12.20%
Total Capital (to risk weighted assets), Actual Amount	$ 256,753	$ 229,598
Total Capital (to risk weighted assets), Actual Ratio	12.70%	12.90%
Tier I Capital (to average assets), Actual Amount	$ 243,679	$ 216,551
Tier I Capital (to average assets), Actual Ratio	10.50%	10.10%
Summit Community [Member]
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Common Equity Tier One Capital	$ 244,045	$ 213,930
Common Equity Tier One Capital Ratio	12.10%	12.00%
Common Equity Tier One Capital Required for Capital Adequacy	$ 141,183	$ 124,793
Tier One Common Equity Required for Capital Adequacy to Risk Weighted Assets	7.00%	7.00%
Common Equity Tier One Capital Required to be Well-Capitalized	$ 131,099	$ 115,879
Tier One Common Equity Required to be Well Capitalized to Risk Weighted Assets	6.50%	6.50%
Tier I Capital (to risk weighted assets ), Actual Amount	$ 244,045	$ 213,930
Tier I Capital (to risk weighted assets), Actual Ratio	12.10%	12.00%
Tier I Capital (to risk weighted assets), Minimum Required Regulatory Capital, Amount	$ 171,437	$ 151,534
Tier I Capital (to risk weighted assets), Minimum Required Regulatory Capital, Ratio	8.50%	8.50%
Tier I Capital (to risk weighted assets), To be Well Capitalized under Prompt Corrective Action Provisions, Amount	$ 161,352	$ 142,620
Tier I Capital (to risk weighted assets), To be Well Capitalized under Prompt Corrective Action Provisions, Ratio	8.00%	8.00%
Total Capital (to risk weighted assets), Actual Amount	$ 257,119	$ 226,977
Total Capital (to risk weighted assets), Actual Ratio	12.70%	12.80%
Total Capital (to risk weighted assets), Minimum Required Regulatory Capital, Amount	$ 212,579	$ 186,192
Total Capital (to risk weighted assets), Minimum Required Regulatory Capital, Ratio	10.50%	10.50%
Total Capital (to risk weighted assets), To be Well Capitalized under Prompt Corrective Action Provisions, Amount	$ 202,456	$ 177,326
Total Capital (to risk weighted assets), To be Well Capitalized under Prompt Corrective Action Provisions, Ratio	10.00%	10.00%
Tier I Capital (to average assets), Actual Amount	$ 244,045	$ 213,930
Tier I Capital (to average assets), Actual Ratio	10.60%	10.00%
Tier I Capital (to average assets), Minimum Required Regulatory Capital, Amount	$ 92,092	$ 85,572
Tier I Capital (to average assets), Minimum Required Regulatory Capital, Ratio	4.00%	4.00%
Tier I Capital (to average assets), To be Well Capitalized under Prompt Corrective Action Provisions, Amount	$ 115,116	$ 106,965
Tier I Capital (to average assets), To be Well Capitalized under Prompt Corrective Action Provisions, Ratio	5.00%	5.00%

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Employee Benefits

12 Months Ended

Dec. 31, 2019

Employee Benefits and Share-based Compensation, Noncash [Abstract]

Employee Benefits

EMPLOYEE BENEFITS

Retirement Plans:  We have defined contribution profit-sharing plans with 401(k) provisions covering substantially all employees.  Contributions to the plans are at the discretion of the Board of Directors.  Contributions made to the plans and charged to expense were $616,000, $622,000 and $556,000 for the years ended December 31, 2019, 2018 and 2017, respectively.

Employee Stock Ownership Plan:  We have an Employee Stock Ownership Plan (“ESOP”), which enables eligible employees to acquire shares of our common stock.  The cost of the ESOP is borne by us through annual contributions to an Employee Stock Ownership Trust in amounts determined by the Board of Directors.

The expense recognized by us is based on cash contributed or committed to be contributed by us to the ESOP during the year.  Contributions to the ESOP for the years ended December 31, 2019, 2018 and 2017 were $721,000, $646,000 and $525,000 respectively.  Dividends paid by us to the ESOP are reported as a reduction of retained earnings.  The ESOP owned 527,705 shares of our common stock at December 31, 2019 and 554,158 shares of common stock at December 31, 2018, all of which were purchased at the prevailing market price. All but 66,099 unallocated shares at December 31, 2019 are considered outstanding for earnings per share computations.

The purchase of unallocated ESOP shares is shown as a reduction of shareholders' equity, similar to a purchase of treasury stock. The loan receivable from the ESOP to the Company is not reported as an asset nor is the debt of the ESOP reported as a liability on the Company's Consolidated Balance Sheets. Cash dividends on allocated shares (those credited to ESOP participants' accounts) are recorded as a reduction of shareholders' equity and distributed directly to participants' accounts.  Cash dividends on unallocated shares (those held by the ESOP not yet credited to participants' accounts) are used to pay a portion of the ESOPs debt service requirements.  

Unallocated ESOP shares will be allocated to ESOP participants ratably as the ESOP's loan is repaid. When the shares are committed to be released and become available for allocation to plan participants, the then fair value of such shares will be charged to compensation expense. 

The ESOP shares as of December 31 are as follows:

ESOP Shares	At December 31,
	2019		2018
Allocated shares	440,751		447,424
Shares committed to be released	20,855		19,780
Unallocated shares	66,099		86,954
Total ESOP shares	527,705		554,158
Market value of unallocated shares (in thousands)	$	1,791	$	1,679

Supplemental Executive Retirement Plan:  We have certain non-qualified Supplemental Executive Retirement Plans (“SERP”) with certain senior officers, which provide participating officers with an income benefit payable at retirement age or death.  The liabilities accrued for the SERP’s at December 31, 2019 and 2018 were $6.7 million and $6.1 million, respectively, which are included in other liabilities.  Included in salaries, commissions and employee benefits was $712,000, $669,000 and $707,000 expense related to these SERPS for the years December 31, 2019, 2018 and 2017, respectively.

Share-Based Compensation:  The 2014 Long-Term Incentive Plan (“2014 LTIP”) was adopted by our shareholders in May 2014 to enhance the ability of the Company to attract and retain exceptionally qualified individuals to serve as key employees. The LTIP provides for the issuance of up to 500,000 shares of common stock, in the form of equity awards including stock options, restricted stock, restricted stock units ("RSUs"), stock appreciation rights ("SARs"), performance units, other share-based awards or any combination thereof, to our key employees.

Stock options awarded under the 2009 Officer Stock Option Plan and the 1998 Officer Stock Option Plan (collectively, the “Plans”) were not altered by the 2014 LTIP and remain subject to the terms of the Plans.  However, under the terms of the 2014 LTIP, all shares of common stock remaining issuable under the Plans at the time the 2014 LTIP was adopted ceased to be available for future issuance.

Under the 2014 LTIP and the Plans, stock options, SARs and RSUs have generally been granted with an exercise price equal to the fair value of Summit's common stock on the grant date. We periodically grant share based compensation to individual employees.

During first quarter 2019, we granted 28,306 SARs with a $9.74 grant date fair value per SAR that become exercisable ratably over seven years (14.3% per year) and expire ten years after the grant date. Also during first quarter 2019, we granted 109,819 SARs with a $8.41 grant date fair value per SAR that become exercisable ratably over five years (20% per year) and expire ten years after the grant date. There were no grants of stock options or SARs in 2018.

The fair value of our employee stock options and SARs granted under the Plans is estimated at the date of grant using the Black-Scholes option-pricing model. This model requires the input of highly subjective assumptions, changes to which can materially affect the fair value estimate. Additionally, there may be other factors that would otherwise have a significant effect on the value of employee stock options and SARs granted but are not considered by the model. Because our employee stock options and SARs have characteristics significantly different from those of traded options and because changes in the subjective input assumptions can materially affect the fair value estimate, in management’s opinion, the existing models do not necessarily provide a reliable single measure of the fair value of its employee stock options and SARs at the time of grant. The assumptions used to value SARs granted in 2019 are as follows:

	2019 grant with 7 year expiration		2019 grant with 5 year expiration
Risk-free interest rate	2.51	%	2.43	%
Expected dividend yield	2.30	%	2.30	%
Expected common stock volatility	40.84	%	35.71	%
Expected life	7 years		5.5 years

A summary of SAR and option activity during 2017, 2018 and 2019 is as follows:

					Weighted Average
Dollars in thousands, except per share amounts	Options / SARs		Aggregate Intrinsic Value		Remaining Contractual Term (Yrs.)	Exercise Price
Outstanding, December 31, 2016	217,857					$	13.56
Granted	87,615					26.01
Exercised	(51,781	)				13.62
Forfeited	—					—
Expired	(3,400	)				24.97
Outstanding, December 31, 2017	250,291					$	17.75
Granted	—					—
Exercised	(6,800	)				17.79
Forfeited	(3,200	)				25.50
Expired	(8,200	)				25.54
Outstanding, December 31, 2018	232,091					$	17.36
Granted	138,125					23.94
Exercised	(31,613	)				11.83
Forfeited	—					—
Expired	(7,900	)				25.83
Outstanding, December 31, 2019	330,703		$	2,200	7.33	$	20.44
Exercisable Options/SARs:
December 31, 2019	104,889		$	1,203	5.74	$	15.62
December 31, 2018	95,924		583		6.04	$	14.82
December 31, 2017	62,646		687		4.92	$	15.35

The total intrinsic value of options and SARs exercised in 2019, 2018 and 2017 was $442,000, $24,000 and $694,000, respectively. The total fair value of options and SARs vested during 2019, 2018 and 2017 was $396,000, $396,000 and $200,000, respectively.

During 2019, we granted 2,892 RSUs which will vest ratably over three years. Grants of RSUs include time-based vesting conditions that generally vest ratably over a period of three to five years. A summary of our RSU activity and related information is as follows.

Dollars in thousands, except per share amounts	RSUs	Weighted Average Grant Date Fair Value
Nonvested, December 31, 2018	—	—
Granted	2,892	25.93
Exercised	—	—
Forfeited	—	—
Vested	—	—
Nonvested, December 31, 2019	2,892	25.93

Total stock compensation expense for all share-based arrangements totaled $590,000, $391,000 and $385,000 for the years ended December 31, 2019, 2018 and 2017, respectively, and the related income tax benefits recognized in 2019, 2018 and 2017 were $142,000, $94,000 and $142,000 respectively. We recognize compensation expense based on the estimated number of stock awards expected to actually vest, exclusive of the awards expected to be forfeited. At December 31, 2019, our total unrecognized compensation expense related to all nonvested awards not yet recognized totaled $1.47 million and is expected to be recognized over the next 1.82 years.

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Borrowed Funds (Short-term Borrowings) (Narrative) (Details) $ in Millions	Dec. 31, 2019 USD ($)
Debt Disclosure [Abstract]
Borrowing availability through credit lines and Federal funds purchased agreements	$ 155.3

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Loans (Narrative) (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Loans and Leases Receivable Disclosure [Abstract]
Residential real estate loan threshold for jumbo loans	$ 600,000
Threshold period past due for nonaccrual status of financing receivable	90 days
Threshold period past due for write-off of credit card loans	180 days
Threshold period special event notification for writeoff of financing receivable	60 days
Threshold period past due for writeoff of residential mortgage loans	180 days
Threshold period for writeoff of collateralized consumer loans	120 days
Risk rate loans, aggregate balance threshold	$ 2,500,000.0
Risk rate loans, loan balance threshold	500,000
Average impaired balance	39,230,000	$ 37,972,000	$ 35,600,000
Interest income recognized while impaired	1,763,000	1,680,000	$ 2,200,000
Troubled debt restructurings included in impaired loans	25,700,000	27,000,000
Current Troubled debt restructurings included in impaired loans	$ 22,900,000	26,600,000
Threshold Period Past Due for Loans to be Default	30 days
Non Homogenous Commercial Loan Relationship, Annual Loan Review, Threshold	$ 2,500,000
Concentrations of Loans to any Single Industry in Excess of Ten Percent of Total Loans	0	$ 0
Threshold for related party loans	$ 60,000

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Goodwill And Other Intangible Assets (Summary Of Goodwill Activity) (Details)	12 Months Ended
	Dec. 31, 2019 USD ($)
Goodwill [Roll Forward]
Beginning balance	$ 15,272,000
Goodwill, Purchase Accounting Adjustments	0
Acquired goodwill, net	2,096,000
Goodwill Reduction in Conjunction with Sale	(4,710,000)
Ending balance	12,658,000
Community Banking [Member]
Goodwill [Roll Forward]
Beginning balance	10,562,000
Goodwill, Purchase Accounting Adjustments	0
Acquired goodwill, net	2,096,000
Goodwill Reduction in Conjunction with Sale	0
Ending balance	12,658,000
Insurance Services [Member]
Goodwill [Roll Forward]
Beginning balance	4,710,000
Goodwill, Purchase Accounting Adjustments	0
Acquired goodwill, net	0
Goodwill Reduction in Conjunction with Sale	(4,710,000)
Ending balance	$ 0

XML

Fair Value Measurements (Carrying Values And Estimated Fair Values Of Financial Instruments) (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt Securities, Available-for-sale	$ 276,355	$ 293,147
Loans held for sale, net	1,319	400
Cash surrender value of life insurance policies	43,603	42,386
Carrying Value [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	61,888	59,540
Debt Securities, Available-for-sale	276,355	293,147
Other investments	12,972	16,635
Loans held for sale, net	1,319	400
Loans, net	1,900,425	1,682,005
Accrued interest receivable	8,439	8,708
Cash surrender value of life insurance policies	43,603	42,386
Derivative Asset	0	555
Total assets	2,305,001	2,103,376
Deposits	1,913,237	1,634,826
Short-term borrowings	199,345	309,084
Long-term borrowings	717	735
Subordinated debentures owed to unconsolidated subsidiary trusts	19,589	19,589
Accrued interest payable	1,234	1,102
Derivative financial liabilities	988	411
Total liabilities	2,135,110	1,965,747
Estimated Fair Value [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	61,888	59,540
Debt Securities, Available-for-sale	276,355	293,147
Other investments	12,972	16,635
Loans held for sale, net	1,319	400
Loans, net	1,901,020	1,666,834
Accrued interest receivable	8,439	8,708
Cash surrender value of life insurance policies	43,603	42,386
Derivative Asset	0	555
Total assets	2,305,596	2,088,205
Deposits	1,918,610	1,631,456
Short-term borrowings	199,345	309,084
Long-term borrowings	854	843
Subordinated debentures owed to unconsolidated subsidiary trusts	19,589	19,589
Accrued interest payable	1,234	1,102
Derivative financial liabilities	988	411
Total liabilities	2,140,620	1,962,485
Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans held for sale, net	0	0
Fair Value, Inputs, Level 1 [Member] | Estimated Fair Value [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	0	0
Debt Securities, Available-for-sale	0	0
Other investments	0	0
Loans held for sale, net	0	0
Loans, net	0	0
Accrued interest receivable	0	0
Cash surrender value of life insurance policies	0	0
Derivative Asset	0	0
Total assets	0	0
Deposits	0	0
Short-term borrowings	0	0
Long-term borrowings	0	0
Subordinated debentures owed to unconsolidated subsidiary trusts	0	0
Accrued interest payable	0	0
Derivative financial liabilities	0	0
Total liabilities	0	0
Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans held for sale, net	1,319	400
Fair Value, Inputs, Level 2 [Member] | Estimated Fair Value [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	61,888	59,540
Debt Securities, Available-for-sale	276,355	293,147
Other investments	12,972	16,635
Loans held for sale, net	1,319	400
Loans, net	7,685	4,553
Accrued interest receivable	8,439	8,708
Cash surrender value of life insurance policies	43,603	42,386
Derivative Asset	0	555
Total assets	412,261	425,924
Deposits	1,918,610	1,631,456
Short-term borrowings	199,345	309,084
Long-term borrowings	854	843
Subordinated debentures owed to unconsolidated subsidiary trusts	19,589	19,589
Accrued interest payable	1,234	1,102
Derivative financial liabilities	988	411
Total liabilities	2,140,620	1,962,485
Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans held for sale, net	0	0
Fair Value, Inputs, Level 3 [Member] | Estimated Fair Value [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	0	0
Debt Securities, Available-for-sale	0	0
Other investments	0	0
Loans held for sale, net	0	0
Loans, net	1,893,335	1,662,281
Accrued interest receivable	0	0
Cash surrender value of life insurance policies	0	0
Derivative Asset	0	0
Total assets	1,893,335	1,662,281
Deposits	0	0
Short-term borrowings	0	0
Long-term borrowings	0	0
Subordinated debentures owed to unconsolidated subsidiary trusts	0	0
Accrued interest payable	0	0
Derivative financial liabilities	0	0
Total liabilities	$ 0	$ 0

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Securities (Summary Of Maturities, Amortized Cost And Estimated Fair Values Of Securities) (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Debt Securities, Available-for-sale [Abstract]
Due in one year or less, Amortized Cost	$ 29,692
Due from one to five years, Amortized Cost	79,060
Due from five to ten years, Amortized Cost	60,439
Due after ten years, Amortized Cost	103,024
Total Amortized Cost	272,215	$ 294,251
Due in one year or less, Estimated Fair Value	29,768
Due from one to five years, Estimated Fair Value	79,170
Due from five to ten years, Estimated Fair Value	60,627
Due after ten years, Estimated Fair Value	106,790
Total Estimated Fair Value	$ 276,355	$ 293,147

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Deposits (Summary Of Scheduled Maturities For All Time Deposits) (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Deposits [Abstract]
2020	$ 336,485
2021	176,029
2022	44,678
2023	17,935
2024	10,661
Thereafter	18,449
Total	$ 604,237	$ 605,276

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Commitments and Contingencies (Tables)

12 Months Ended

Dec. 31, 2019

Commitments and Contingencies Disclosure [Abstract]

Summary Of The Total Unfunded, Or Off-Balance Sheet, Credit Extension Commitments

A summary of the total unfunded, or off-balance sheet, credit extension commitments follows:

Dollars in thousands	December 31, 2019		December 31, 2018
Commitments to extend credit:
Revolving home equity and credit card lines	$	69,200	$	69,893
Construction loans	119,456		85,392
Other loans	225,637		161,619
Standby letters of credit	12,078		6,366
Total	$	426,371	$	323,270

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Borrowed Funds (Tables)

12 Months Ended

Dec. 31, 2019

Debt Disclosure [Abstract]

Schedule of Short-term Debt

A summary of short-term borrowings is presented below.

	2019						2018
Dollars in thousands	Short-term FHLB Advances			Federal Funds Purchased			Short-term FHLB Advances			Federal Funds Purchased
Balance at December 31	$	199,200		$	145		$	303,950		$	5,134
Average balance outstanding for the period	193,992			458			223,764			4,378
Maximum balance outstanding at any month end during period	237,400			145			303,950			7,534
Weighted average interest rate for the period	2.48		%	2.43		%	2.18		%	1.95		%
Weighted average interest rate for balances
outstanding at December 31	1.83		%	1.75		%	2.71		%	2.50		%

Schedule of Maturities of Long-term Debt

A summary of the maturities of all long-term borrowings and subordinated debentures for the next five years and thereafter is as follows:

Dollars in thousands	Long-term borrowings		Subordinated debentures owed to unconsolidated subsidiary trusts
2020	$	19	$	—
2021	19		—
2022	21		—
2023	22		—
2024	23		—
Thereafter	613		19,589
Total	$	717	$	19,589

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Property Held For Sale (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Activity of Property Held for Sale [Roll Forward]
Beginning balance	$ 21,432	$ 21,470	$ 24,504
Acquisitions	4,549	1,804	363
Real Estate Acquired Through Foreclosure Acquired through Merger Acquisition	0	0	2,377
Capitalized improvements	512	1,304	316
Dispositions	(5,142)	(2,370)	(5,205)
Valuation adjustments	(2,075)	(776)	(885)
Balance at year end	$ 19,276	$ 21,432	$ 21,470

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Loans (Schedule Of Loans Individually Evaluated For Impairment) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Financing Receivable, Impaired [Line Items]
Recorded Investment	$ 37,163	$ 43,356
Unpaid Principal Balance	37,176	43,607
Related Allowance	1,335	2,142
Average Impaired Balance	39,230	37,972	$ 35,600
Interest Income Recognized while impaired	1,763	1,680	$ 2,200
Commercial Loan [Member]
Financing Receivable, Impaired [Line Items]
Without a related allowance, Recorded Investment	403	1,019
Without a related allowance, Unpaid Principal Balance	403	1,253
Without a related allowance, Average Impaired Balance	467	321
Without a related allowance, Interest Income Recognized while impaired	21	16
With a related allowance, Recorded Investment	4,882	3,343
With a related allowance, Unpaid Principal Balance	4,882	3,342
With a related allowance, Related Allowance	51	682
With a related allowance, Average Impaired Balance	4,786	705
With a related allowance, Interest Income Recognized while impaired	274	39
Owner Occupied [Member]
Financing Receivable, Impaired [Line Items]
Without a related allowance, Recorded Investment	7,223	8,600
Without a related allowance, Unpaid Principal Balance	7,224	8,605
Without a related allowance, Average Impaired Balance	7,534	7,730
Without a related allowance, Interest Income Recognized while impaired	224	318
With a related allowance, Recorded Investment	3,862	2,969
With a related allowance, Unpaid Principal Balance	3,866	2,969
With a related allowance, Related Allowance	409	462
With a related allowance, Average Impaired Balance	3,893	2,397
With a related allowance, Interest Income Recognized while impaired	113	117
Non Owner Occupied [Member]
Financing Receivable, Impaired [Line Items]
Without a related allowance, Recorded Investment	8,514	9,666
Without a related allowance, Unpaid Principal Balance	8,515	9,673
Without a related allowance, Average Impaired Balance	9,389	9,753
Without a related allowance, Interest Income Recognized while impaired	495	493
With a related allowance, Recorded Investment	540	189
With a related allowance, Unpaid Principal Balance	544	191
With a related allowance, Related Allowance	113	9
With a related allowance, Average Impaired Balance	535	226
With a related allowance, Interest Income Recognized while impaired	5	16
Land And Land Improvements [Member]
Financing Receivable, Impaired [Line Items]
Without a related allowance, Recorded Investment	945	4,767
Without a related allowance, Unpaid Principal Balance	945	4,767
Without a related allowance, Average Impaired Balance	1,143	4,947
Without a related allowance, Interest Income Recognized while impaired	65	102
With a related allowance, Recorded Investment	1,015	1,057
With a related allowance, Unpaid Principal Balance	1,015	1,057
With a related allowance, Related Allowance	589	298
With a related allowance, Average Impaired Balance	1,030	1,073
With a related allowance, Interest Income Recognized while impaired	51	56
Construction [Member]
Financing Receivable, Impaired [Line Items]
Without a related allowance, Recorded Investment	0	0
Without a related allowance, Unpaid Principal Balance	0	0
Without a related allowance, Average Impaired Balance	0	0
Without a related allowance, Interest Income Recognized while impaired	0	0
With a related allowance, Recorded Investment	0	0
With a related allowance, Unpaid Principal Balance	0	0
With a related allowance, Related Allowance	0	0
With a related allowance, Average Impaired Balance	0	0
With a related allowance, Interest Income Recognized while impaired	0	0
Non Jumbo [Member]
Financing Receivable, Impaired [Line Items]
Without a related allowance, Recorded Investment	3,387	3,279
Without a related allowance, Unpaid Principal Balance	3,393	3,284
Without a related allowance, Average Impaired Balance	3,787	3,401
Without a related allowance, Interest Income Recognized while impaired	217	180
With a related allowance, Recorded Investment	1,876	2,982
With a related allowance, Unpaid Principal Balance	1,874	2,981
With a related allowance, Related Allowance	173	585
With a related allowance, Average Impaired Balance	2,112	2,539
With a related allowance, Interest Income Recognized while impaired	59	98
Jumbo [Member]
Financing Receivable, Impaired [Line Items]
Without a related allowance, Recorded Investment	3,980	4,132
Without a related allowance, Unpaid Principal Balance	3,979	4,130
Without a related allowance, Average Impaired Balance	4,017	3,517
Without a related allowance, Interest Income Recognized while impaired	210	166
With a related allowance, Recorded Investment	0	821
With a related allowance, Unpaid Principal Balance	0	822
With a related allowance, Related Allowance	0	106
With a related allowance, Average Impaired Balance	0	827
With a related allowance, Interest Income Recognized while impaired	0	48
Home Equity [Member]
Financing Receivable, Impaired [Line Items]
Without a related allowance, Recorded Investment	523	523
Without a related allowance, Unpaid Principal Balance	523	523
Without a related allowance, Average Impaired Balance	523	523
Without a related allowance, Interest Income Recognized while impaired	27	30
With a related allowance, Recorded Investment	0	0
With a related allowance, Unpaid Principal Balance	0	0
With a related allowance, Related Allowance	0	0
With a related allowance, Average Impaired Balance	0	0
With a related allowance, Interest Income Recognized while impaired	0	0
Mortgage Warehouse Lines [Member]
Financing Receivable, Impaired [Line Items]
Without a related allowance, Recorded Investment	0	0
Without a related allowance, Unpaid Principal Balance	0	0
Without a related allowance, Average Impaired Balance	0	0
Without a related allowance, Interest Income Recognized while impaired	0	0
With a related allowance, Recorded Investment	0	0
With a related allowance, Unpaid Principal Balance	0	0
With a related allowance, Related Allowance	0	0
With a related allowance, Average Impaired Balance	0	0
With a related allowance, Interest Income Recognized while impaired	0	0
Consumer Portfolio Segment [Member]
Financing Receivable, Impaired [Line Items]
Without a related allowance, Recorded Investment	13	9
Without a related allowance, Unpaid Principal Balance	13	10
Without a related allowance, Average Impaired Balance	14	13
Without a related allowance, Interest Income Recognized while impaired	2	1
With a related allowance, Recorded Investment	0	0
With a related allowance, Unpaid Principal Balance	0	0
With a related allowance, Related Allowance	0	0
With a related allowance, Average Impaired Balance	0	0
With a related allowance, Interest Income Recognized while impaired	0	0
Total Without a Related Allowance
Financing Receivable, Impaired [Line Items]
Without a related allowance, Recorded Investment	24,988	31,995
Without a related allowance, Unpaid Principal Balance	24,995	32,245
Without a related allowance, Average Impaired Balance	26,874	30,205
Without a related allowance, Interest Income Recognized while impaired	1,261	1,306
Total With a Related Allowance
Financing Receivable, Impaired [Line Items]
With a related allowance, Recorded Investment	12,175	11,361
With a related allowance, Unpaid Principal Balance	12,181	11,362
With a related allowance, Related Allowance	1,335	2,142
With a related allowance, Average Impaired Balance	12,356	7,767
With a related allowance, Interest Income Recognized while impaired	502	374
Total Commercial
Financing Receivable, Impaired [Line Items]
Recorded Investment	27,384	31,610
Unpaid Principal Balance	27,394	31,857
Related Allowance	1,162	1,451
Average Impaired Balance	28,777	27,152
Interest Income Recognized while impaired	1,248	1,157
Total Residential Real Estate
Financing Receivable, Impaired [Line Items]
Recorded Investment	9,766	11,737
Unpaid Principal Balance	9,769	11,740
Related Allowance	173	691
Average Impaired Balance	10,439	10,807
Interest Income Recognized while impaired	513	522
Total Consumer
Financing Receivable, Impaired [Line Items]
Recorded Investment	13	9
Unpaid Principal Balance	13	10
Related Allowance	0	0
Average Impaired Balance	14	13
Interest Income Recognized while impaired	$ 2	$ 1

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Loans Loans (Summary of Change in Accretable Yield PCI Loans (Details) - Purchased Impaired Loans [Member] - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Summary of Change in Accretable Yield PCI Loans [Line Items]
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield	$ 523	$ 632	$ 745
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield, Accretion	(63)	(115)
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield, Reclassifications from Nonaccretable Difference	0	0
Certain Loans Acquired in Transfer Not Accounting for as Debt Securities Accretable Yield Other Changes, Net	$ (46)	$ 2

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Loans Loans (Activity for Related Party Loans of $60,000 or More) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Loans and Leases Receivable, Related Parties [Roll Forward]
Balance, beginning	$ 43,899	$ 45,698
Additions	37,947	6,750
Amounts collected	(30,203)	(6,992)
Other changes, net	(351)	(1,557)
Balance, ending	$ 51,292	$ 43,899

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Loans (Schedule Of Recorded Investment Evaluated Based On Internal Risk Ratings) (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Financing Receivable, Recorded Investment [Line Items]
Total	$ 1,913,499	$ 1,695,052
Land And Land Improvements [Member]
Financing Receivable, Recorded Investment [Line Items]
Total	84,112	68,833
Construction Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Total	37,523	24,731
Commercial Loan [Member]
Financing Receivable, Recorded Investment [Line Items]
Total	207,138	194,315
Owner Occupied [Member]
Financing Receivable, Recorded Investment [Line Items]
Total	276,218	266,362
Non Owner Occupied [Member]
Financing Receivable, Recorded Investment [Line Items]
Total	629,206	564,826
Mortgage Warehouse Lines [Member]
Financing Receivable, Recorded Investment [Line Items]
Total	126,237	39,140
Pass [Member] | Land And Land Improvements [Member]
Financing Receivable, Recorded Investment [Line Items]
Total	82,317	63,743
Pass [Member] | Construction Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Total	37,385	24,589
Pass [Member] | Commercial Loan [Member]
Financing Receivable, Recorded Investment [Line Items]
Total	200,313	182,651
Pass [Member] | Owner Occupied [Member]
Financing Receivable, Recorded Investment [Line Items]
Total	269,357	259,360
Pass [Member] | Non Owner Occupied [Member]
Financing Receivable, Recorded Investment [Line Items]
Total	622,857	556,609
Pass [Member] | Mortgage Warehouse Lines [Member]
Financing Receivable, Recorded Investment [Line Items]
Total	126,237	39,140
Special Mention [Member] | Land And Land Improvements [Member]
Financing Receivable, Recorded Investment [Line Items]
Total	454	472
Special Mention [Member] | Construction Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Total	138	142
Special Mention [Member] | Commercial Loan [Member]
Financing Receivable, Recorded Investment [Line Items]
Total	1,052	6,748
Special Mention [Member] | Owner Occupied [Member]
Financing Receivable, Recorded Investment [Line Items]
Total	2,184	1,864
Special Mention [Member] | Non Owner Occupied [Member]
Financing Receivable, Recorded Investment [Line Items]
Total	1,876	1,554
Special Mention [Member] | Mortgage Warehouse Lines [Member]
Financing Receivable, Recorded Investment [Line Items]
Total	0	0
Substandard [Member] | Land And Land Improvements [Member]
Financing Receivable, Recorded Investment [Line Items]
Total	1,341	4,618
Substandard [Member] | Construction Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Total	0	0
Substandard [Member] | Commercial Loan [Member]
Financing Receivable, Recorded Investment [Line Items]
Total	5,773	4,916
Substandard [Member] | Owner Occupied [Member]
Financing Receivable, Recorded Investment [Line Items]
Total	4,677	5,138
Substandard [Member] | Non Owner Occupied [Member]
Financing Receivable, Recorded Investment [Line Items]
Total	4,473	6,663
Substandard [Member] | Mortgage Warehouse Lines [Member]
Financing Receivable, Recorded Investment [Line Items]
Total	0	0
Doubtful [Member] | Land And Land Improvements [Member]
Financing Receivable, Recorded Investment [Line Items]
Total	0	0
Doubtful [Member] | Construction Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Total	0	0
Doubtful [Member] | Commercial Loan [Member]
Financing Receivable, Recorded Investment [Line Items]
Total	0	0
Doubtful [Member] | Owner Occupied [Member]
Financing Receivable, Recorded Investment [Line Items]
Total	0	0
Doubtful [Member] | Non Owner Occupied [Member]
Financing Receivable, Recorded Investment [Line Items]
Total	0	0
Doubtful [Member] | Mortgage Warehouse Lines [Member]
Financing Receivable, Recorded Investment [Line Items]
Total	0	0
Loss [Member] | Land And Land Improvements [Member]
Financing Receivable, Recorded Investment [Line Items]
Total	0	0
Loss [Member] | Construction Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Total	0	0
Loss [Member] | Commercial Loan [Member]
Financing Receivable, Recorded Investment [Line Items]
Total	0	0
Loss [Member] | Owner Occupied [Member]
Financing Receivable, Recorded Investment [Line Items]
Total	0	0
Loss [Member] | Non Owner Occupied [Member]
Financing Receivable, Recorded Investment [Line Items]
Total	0	0
Loss [Member] | Mortgage Warehouse Lines [Member]
Financing Receivable, Recorded Investment [Line Items]
Total	$ 0	$ 0

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Goodwill And Other Intangible Assets (Narrative) (Details) - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
Finite-lived intangible assets, net	$ 10,360,000	$ 10,570,000
Finite-Lived Core Deposits, Gross	$ 10,300,000	9,800,000
Finite-Lived Customer Relationships, Gross		$ 700,000

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Condensed Financial Statements Of Parent Company (Tables) - Parent Company [Member]

12 Months Ended

Dec. 31, 2019

Balance Sheets

Balance Sheets
	December 31,
Dollars in thousands	2019			2018
Assets
Cash	$	2,185		$	4,326
Investment in subsidiaries	267,132			236,422
Other investments	77			77
Premises and equipment	146			126
Other assets	1,317			1,365
Total assets	$	270,857		$	242,316
Liabilities and Shareholders' Equity
Subordinated debentures owed to unconsolidated subsidiary trusts	$	19,589		$	19,589
Other liabilities	3,504			2,897
Total liabilities	23,093			22,486
Preferred stock, $1.00 par value, authorized 250,000 shares	—			—
Common stock and related surplus, $2.50 par value, authorized
20,000,000 shares; issued: 12,474,641 shares 2019, 12,399,887 shares 2018; outstanding: 12,408,542 shares 2019, 12,312,933 shares 2018	80,084			80,431
Unallocated common stock held by Employee Stock Ownership Plan - 2019 - 66,099 shares, 2018 - 86,954 shares	(714		)	(939		)
Retained earnings	165,859			141,354
Accumulated other comprehensive income (loss)	2,535			(1,016		)
Total shareholders' equity	247,764			219,830
Total liabilities and shareholders' equity	$	270,857		$	242,316

Statements of Income

Statements of Income
	For the Year Ended December 31,
Dollars in thousands	2019			2018			2017
Income
Dividends from subsidiaries	$	16,757		$	10,600		$	6,500
Other dividends and interest income	54			28			24
Management and service fees from subsidiaries	1,542			1,555			1,964
Total income	18,353			12,183			8,488
Expense
Interest expense	949			899			714
Operating expenses	3,755			2,565			2,462
Total expenses	4,704			3,464			3,176
Income before income taxes and equity in
undistributed income of subsidiaries	13,649			8,719			5,312
Income tax (benefit)	(276		)	(374		)	(129		)
Income before equity in undistributed income of subsidiaries	13,925			9,093			5,441
Equity in undistributed income of subsidiaries	17,941			18,979			6,474
Net income	$	31,866		$	28,072		$	11,915

Statements of Cash Flows

Statements of Cash Flows
	For the Year Ended December 31,
Dollars in thousands	2019			2018			2017
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$	31,866		$	28,072		$	11,915
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in undistributed net income of subsidiaries	(17,941		)	(18,979		)	(6,474		)
Deferred tax (benefit) expense	(18		)	(8		)	346
Depreciation	50			41			39
Share-based compensation expense	274			181			174
Earnings on bank owned life insurance	—			7			(1		)
Decrease (increase) in other assets	491			(375		)	535
Increase in other liabilities	807			1,036			512
Net cash provided by operating activities	15,529			9,975			7,046
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of premises and equipment	(123		)	(86		)	(92		)
Proceeds from sale of premises and equipment	53			13			60
Net cash used in investing activities	(70		)	(73		)	(32		)
CASH FLOWS FROM FINANCING ACTIVITIES
Dividends paid on common stock	(7,361		)	(6,545		)	(5,238		)
Exercise of stock options	7			122			303
Repayment of long-term borrowings	—			—			(902		)
Purchase and retirement of common stock	(10,405		)	(1,689		)	—
Proceeds from issuance of common stock, net of issuance costs	159			237			10
Net cash used in financing activities	(17,600		)	(7,875		)	(5,827		)
(Decrease) increase in cash	(2,141		)	2,027			1,187
Cash:
Beginning	4,326			2,299			1,112
Ending	$	2,185		$	4,326		$	2,299
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Cash payments for:
Interest	$	961		$	875		$	704

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Acquisitions Financial Effects of Purchase Accounting Adjustments (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Business Acquisition [Line Items]
Interest and Fees on Loans	$ 694	$ 386	$ 825
Interest Expense on Deposits	316	205	237
Amortization of Intangibles	(1,634)	(1,471)	(1,210)
Income Before Income Tax Expense	$ (624)	$ (880)	$ (148)

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Loans (Tables)

12 Months Ended

Dec. 31, 2019

Loans and Leases Receivable Disclosure [Abstract]

Summary Of Loans, Net Of Unearned Fees

Loans are summarized as follows:

Dollars in thousands	2019		2018
Commercial	$	207,138	$	194,315
Commercial real estate
Owner-occupied	276,218		266,362
Non-owner occupied	629,206		564,826
Construction and development
Land and land development	84,112		68,833
Construction	37,523		24,731
Residential real estate
Non-jumbo	354,963		336,977
Jumbo	70,947		73,599
Home equity	76,568		80,910
Mortgage warehouse lines	126,237		39,140
Consumer	36,470		32,460
Other	14,117		12,899
Total loans, net of unearned fees	1,913,499		1,695,052
Less allowance for loan losses	13,074		13,047
Loans, net	$	1,900,425	$	1,682,005

Schedule Of Acquired Loans

The outstanding balance and the recorded investment of acquired loans included in the consolidated balance sheet at December 31, 2019 and 2018 are as follows:

	Acquired Loans
	2019						2018
Dollars in thousands	Purchased Credit Impaired		Purchased Performing		Total		Purchased Credit Impaired		Purchased Performing		Total
Outstanding balance	$	3,488	$	131,745	$	135,233	$	4,275	$	138,167	$	142,442
Recorded investment
Commercial	$	—	$	3,333	$	3,333	$	—	$	3,934	$	3,934
Commercial real estate
Owner-occupied	—		17,416		17,416		—		16,133		16,133
Non-owner occupied	653		12,957		13,610		1,162		23,431		24,593
Construction and development
Land and land development	—		3,031		3,031		—		5,161		5,161
Construction	—		—		—		—		—		—
Residential real estate
Non-jumbo	1,247		83,856		85,103		1,374		77,894		79,268
Jumbo	944		3,055		3,999		975		2,577		3,552
Home equity	—		2,144		2,144		—		2,805		2,805
Consumer	—		4,159		4,159		—		4,630		4,630
Other	—		13		13		—		122		122
Total recorded investment	$	2,844	$	129,964	$	132,808	$	3,511	$	136,687	$	140,198

Summary of Change in Accretable Yield PCI Loans

The following table presents a summary of the change in the accretable yield of the purchased credit impaired ("PCI") loan portfolio during 2019 and 2018:

Dollars in thousands	2019			2018
Accretable yield, January 1	$	632		$	745
Accretion	(63		)	(115		)
Reclassification of nonaccretable difference due to improvement in expected cash flows	—			—
Other changes, net	(46		)	2
Accretable yield, December 31	$	523		$	632

Schedule Of Loan Maturities

The following presents loan maturities at December 31, 2019:

	Within		After 1 but		After
Dollars in thousands	1 Year		within 5 Years		5 Years
Commercial	$	101,625	$	63,132	$	42,381
Commercial real estate	88,846		119,993		696,585
Construction and development	43,713		28,611		49,311
Residential real estate	25,830		39,072		437,576
Mortgage warehouse lines	126,237		—		—
Consumer	5,247		25,849		5,374
Other	1,026		6,232		6,859
	$	392,524	$	282,889	$	1,238,086
Loans due after one year with:
Variable rates			$	564,490
Fixed rates			956,485
			$	1,520,975

Schedule Of Contractual Aging Of Recorded Investment In Past Due Loans By Class

The following table presents the contractual aging of the recorded investment in past due loans by class as of December 31, 2019 and 2018.

	At December 31, 2019
	Past Due										> 90 days and Accruing
Dollars in thousands	30-59 days		60-89 days		> 90 days		Total		Current
Commercial	$	216	$	—	$	383	$	599	$	206,539	$	—
Commercial real estate
Owner-occupied	119		137		4,035		4,291		271,927		—
Non-owner occupied	879		179		1,363		2,421		626,785		—
Construction and development
Land and land development	208		28		188		424		83,688		—
Construction	—		—		138		138		37,385		—
Residential mortgage
Non-jumbo	4,172		826		1,877		6,875		348,088		—
Jumbo	—		—		—		—		70,947		—
Home equity	760		—		223		983		75,585		—
Mortgage warehouse lines	—		—		—		—		126,237		—
Consumer	208		86		112		406		36,064		42
Other	—		—		100		100		14,017		—
Total	$	6,562	$	1,256	$	8,419	$	16,237	$	1,897,262	$	42

	At December 31, 2018
	Past Due										> 90 days and Accruing
Dollars in thousands	30-59 days		60-89 days		> 90 days		Total		Current
Commercial	$	254	$	51	$	483	$	788	$	193,527	$	—
Commercial real estate
Owner-occupied	—		—		612		612		265,750		—
Non-owner occupied	156		255		1,756		2,167		562,659		—
Construction and development
Land and land development	190		4		3,174		3,368		65,465		—
Construction	—		—		—		—		24,731		—
Residential mortgage
Non-jumbo	4,120		2,235		3,753		10,108		326,869		—
Jumbo	—		—		675		675		72,924		—
Home equity	754		261		181		1,196		79,714		—
Mortgage warehouse lines	—		—		—		—		39,140		—
Consumer	502		121		125		748		31,712		36
Other	31		—		—		31		12,868		—
Total	$	6,007	$	2,927	$	10,759	$	19,693	$	1,675,359	$	36

Schedule of Financing Receivables, Non Accrual Status

Nonaccrual loans:  The following table presents the nonaccrual loans included in the net balance of loans at December 31, 2019 and 2018.

Dollars in thousands	2019		2018
Commercial	$	764	$	935
Commercial real estate
Owner-occupied	4,198		1,028
Non-owner occupied	1,602		2,210
Construction and development
Land & land development	188		3,198
Construction	138		—
Residential mortgage
Non-jumbo	4,120		6,532
Jumbo	—		675
Home equity	284		299
Mortgage warehouse lines	—		—
Consumer	74		112
Other	100		—
Total	$	11,468	$	14,989

Impaired Financing Receivables

The following tables present loans individually evaluated for impairment at December 31, 2019 and 2018.

	December 31, 2019
Dollars in thousands	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Impaired Balance		Interest Income Recognized while impaired
Without a related allowance
Commercial	$	403	$	403	$	—	$	467	$	21
Commercial real estate
Owner-occupied	7,223		7,224		—		7,534		224
Non-owner occupied	8,514		8,515		—		9,389		495
Construction and development
Land & land development	945		945		—		1,143		65
Construction	—		—		—		—		—
Residential real estate
Non-jumbo	3,387		3,393		—		3,787		217
Jumbo	3,980		3,979		—		4,017		210
Home equity	523		523		—		523		27
Mortgage warehouse lines	—		—		—		—		—
Consumer	13		13		—		14		2
Total without a related allowance	$	24,988	$	24,995	$	—	$	26,874	$	1,261
With a related allowance
Commercial	$	4,882	$	4,882	$	51	$	4,786	$	274
Commercial real estate
Owner-occupied	3,862		3,866		409		3,893		113
Non-owner occupied	540		544		113		535		5
Construction and development
Land & land development	1,015		1,015		589		1,030		51
Construction	—		—		—		—		—
Residential real estate
Non-jumbo	1,876		1,874		173		2,112		59
Jumbo	—		—		—		—		—
Home equity	—		—		—		—		—
Mortgage warehouse lines	—		—		—		—		—
Consumer	—		—		—		—		—
Total with a related allowance	$	12,175	$	12,181	$	1,335	$	12,356	$	502
Total
Commercial	$	27,384	$	27,394	$	1,162	$	28,777	$	1,248
Residential real estate	9,766		9,769		173		10,439		513
Consumer	13		13		—		14		2
Total	$	37,163	$	37,176	$	1,335	$	39,230	$	1,763

The above table does not include PCI loans.

	December 31, 2018
Dollars in thousands	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Impaired Balance		Interest Income Recognized while impaired
Without a related allowance
Commercial	$	1,019	$	1,253	$	—	$	321	$	16
Commercial real estate
Owner-occupied	8,600		8,605		—		7,730		318
Non-owner occupied	9,666		9,673		—		9,753		493
Construction and development
Land & land development	4,767		4,767		—		4,947		102
Construction	—		—		—		—		—
Residential real estate
Non-jumbo	3,279		3,284		—		3,401		180
Jumbo	4,132		4,130		—		3,517		166
Home equity	523		523		—		523		30
Mortgage warehouse lines	—		—		—		—		—
Consumer	9		10		—		13		1
Total without a related allowance	$	31,995	$	32,245	$	—	$	30,205	$	1,306
With a related allowance
Commercial	$	3,343	$	3,342	$	682	$	705	$	39
Commercial real estate
Owner-occupied	2,969		2,969		462		2,397		117
Non-owner occupied	189		191		9		226		16
Construction and development
Land & land development	1,057		1,057		298		1,073		56
Construction	—		—		—		—		—
Residential real estate
Non-jumbo	2,982		2,981		585		2,539		98
Jumbo	821		822		106		827		48
Home equity	—		—		—		—		—
Mortgage warehouse lines	—		—		—		—		—
Consumer	—		—		—		—		—
Total with a related allowance	$	11,361	$	11,362	$	2,142	$	7,767	$	374
Total
Commercial	$	31,610	$	31,857	$	1,451	$	27,152	$	1,157
Residential real estate	11,737		11,740		691		10,807		522
Consumer	9		10		—		13		1
Total	$	43,356	$	43,607	$	2,142	$	37,972	$	1,680

Troubled Debt Restructurings on Financing Receivables

All TDRs are evaluated individually for allowance for loan loss purposes.

	2019					2018
Dollars in thousands	Number of Modifications	Pre-modification Recorded Investment		Post-modification Recorded Investment		Number of Modifications	Pre-modification Recorded Investment		Post-modification Recorded Investment
Commercial	—	$	—	$	—	2	$	157	$	157
Commercial real estate
Owner-occupied	1	325		325		—	—		—
Non-owner occupied	4	324		324		2	183		183
Residential real estate
Non-jumbo	7	410		410		8	899		899
Consumer	1	15		15		—	—		—
Total	13	$	1,074	$	1,074	12	$	1,239	$	1,239

Schedule Of Defaults During Stated Period Of Trouble Debt Restructurings

For purposes of these tables, a default is considered as either the loan was past due 30 days or more at any time during the period, or the loan was fully or partially charged off during the period. 

	2019			2018
Dollars in thousands	Number of Defaults	Recorded Investment at Default Date		Number of Defaults	Recorded Investment at Default Date
Commercial	—	$	—	2	$	157
Commercial real estate
Non-owner occupied	2	178		—	—
Residential real estate
Non-jumbo	3	174		7	847
Total	5	$	352	9	$	1,004

Schedule of the Activity Regarding TDRs by Loan Type

The following table details the activity regarding TDRs by loan type during 2019 and the related allowance on TDRs.

2019
	Construction & Land Development								Commercial Real Estate						Residential Real Estate
Dollars in thousands	Land & Land Develop- ment			Construc- tion		Commer- cial			Owner Occupied			Non- Owner Occupied			Non- jumbo			Jumbo			Home Equity		Mortgage Warehouse Lines		Con- sumer			Other		Total
Troubled debt restructurings
Balance January 1, 2019	$	2,654		$	—	$	273		$	9,365		$	5,404		$	4,490		$	4,278		$	523	$	—	$	10		$	—	$	26,997
Additions	—			—		—			325			324			410			—			—		—		15			—		1,074
Charge-offs	—			—		—			—			—			—			—			—		—		—			—		—
Net (paydowns) advances	(694		)	—		(71		)	(204		)	(203		)	(287		)	(924		)	—		—		(12		)	—		(2,395		)
Transfer into foreclosed properties	—			—		—			—			—			—			—			—		—		—			—		—
Refinance out of TDR status	—			—		—			—			—			—			—			—		—		—			—		—
Balance, December 31, 2019	$	1,960		$	—	$	202		$	9,486		$	5,525		$	4,613		$	3,354		$	523	$	—	$	13		$	—	$	25,676
Allowance related to troubled debt restructurings	$	589		$	—	$	4		$	245		$	—		$	163		$	—		$	—	$	—	$	—		$	—	$	1,001

Financing Receivable Credit Quality Indicators

The following table presents the recorded investment in construction and development, commercial and commercial real estate loans which are generally evaluated based upon our internal risk ratings defined above.

Loan Risk Profile by Internal Risk Rating
	Construction and Development												Commercial Real Estate
	Land and Land Development				Construction				Commercial				Owner Occupied				Non-Owner Occupied				Mortgage Warehouse Lines
Dollars in thousands	2019		2018		2019		2018		2019		2018		2019		2018		2019		2018		2019		2018
Pass	$	82,317	$	63,743	$	37,385	$	24,589	$	200,313	$	182,651	$	269,357	$	259,360	$	622,857	$	556,609	$	126,237	$	39,140
OLEM (Special Mention)	454		472		138		142		1,052		6,748		2,184		1,864		1,876		1,554		—		—
Substandard	1,341		4,618		—		—		5,773		4,916		4,677		5,138		4,473		6,663		—		—
Doubtful	—		—		—		—		—		—		—		—		—		—		—		—
Loss	—		—		—		—		—		—		—		—		—		—		—		—
Total	$	84,112	$	68,833	$	37,523	$	24,731	$	207,138	$	194,315	$	276,218	$	266,362	$	629,206	$	564,826	$	126,237	$	39,140

Schedule Of Recorded Investment Evaluated Based On Aging Status Of Loans And Payment Activity

The following table presents the recorded investment in consumer, residential real estate and home equity loans, which are generally evaluated based on the aging status of the loans, which was previously presented, and payment activity.

	Performing				Nonperforming
Dollars in thousands	2019		2018		2019		2018
Residential real estate
Non-jumbo	$	350,843	$	330,445	$	4,120	$	6,532
Jumbo	70,947		72,924		—		675
Home Equity	76,284		80,611		284		299
Consumer	36,354		32,312		116		148
Other	14,017		12,899		100		—
Total	$	548,445	$	529,191	$	4,620	$	7,654

Schedule of Related Party Loans Aggregating $60,000 or More

The following presents the activity with respect to related party loans aggregating $60,000 or more to any one related party (other changes represent additions to and changes in director and executive officer status):

Dollars in thousands	2019			2018
Balance, beginning	$	43,899		$	45,698
Additions	37,947			6,750
Amounts collected	(30,203		)	(6,992		)
Other changes, net	(351		)	(1,557		)
Balance, ending	$	51,292		$	43,899

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Income Taxes (Reconciliation Income Tax Expense And Statutory Income Tax Rates) (Details) - USD ($) $ in Thousands		12 Months Ended
	Dec. 22, 2017	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Amount
Computed tax at applicable statutory rate		$ 8,313	$ 7,370	$ 7,553
Tax-exempt interest and dividends, net		(728)	(1,011)	(1,569)
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Amount		0	0	0
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Other, Amount		(177)	(286)	(247)
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Amount		0	0	3,461
State income taxes, net of Federal income tax benefit		753	734	354
Other, net		(444)	217	112
Applicable income taxes		$ 7,717	$ 7,024	$ 9,664
Percent
Computed tax at applicable statutory rate	35.00%	21.00%	21.00%	35.00%
Tax-exempt interest and dividends, net		(2.00%)	(3.00%)	(7.00%)
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Percent		0.00%	0.00%	0.00%
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Other, Percent		0.00%	(1.00%)	(1.00%)
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Percent		0.00%	0.00%	16.00%
State income taxes, net of Federal income tax benefit		2.00%	2.00%	2.00%
Other, net		(1.00%)	1.00%	0.00%
Applicable income taxes		20.00%	20.00%	45.00%

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Borrowed Funds (Summary Of The Maturities Of All Long-Term Borrowings And Subordinated Debentures) (Details) - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Total	$ 717,000	$ 735,000
Long-term borrowings [Member]
2020	19,000
2021	19,000
2022	21,000
2023	22,000
2024	23,000
Thereafter	613,000
Total	717,000
Subordinated debentures owed to unconsolidated subsidiary trusts [Member]
2020	0
2021	0
2022	0
2023	0
2024	0
Thereafter	19,589,000
Total	$ 19,589,000

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Basis of Presentation (Policies)

12 Months Ended

Dec. 31, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Use of estimates

Use of estimates:  We must make estimates and assumptions that affect the reported amounts and disclosures in preparing our financial statements in conformity with accounting principles generally accepted in the United States of America.  Actual results could differ significantly from those estimates.

Principles of consolidation

Principles of consolidation:  The accompanying consolidated financial statements include the accounts of Summit and its wholly-owned subsidiary.  All significant accounts and transactions among these entities have been eliminated.

Comprehensive Income, Policy

Comprehensive income: Comprehensive income consists of net income and other comprehensive income. Other comprehensive income includes unrealized gains and losses on securities available for sale, cash flow hedges, other post-retirement benefits and pension plans, which are recognized as separate components of equity.

Cash and cash equivalents

Cash and cash equivalents:  Cash and cash equivalents includes cash on hand, amounts due from banks (including cash items in process of clearing), interest bearing deposits with other banks and federal funds sold.

Finance, Loan and Lease Receivables, Held-for-sale, Policy

Loans held for sale: Loans held for sale are valued at the lower of aggregate carrying cost or fair value. Gains or losses realized on the sales of loans are recognized in other income at the time of sale.

Cash surrender value of life insurance policies

Cash surrender value of life insurance policies: We have purchased life insurance policies on certain employees. Company owned life insurance is recorded at the amount that can be realized under the insurance contract at the balance sheet date, which is the cash surrender value adjusted for other charges or other amounts due that are probable at settlement.

Presentation of cash flows

Presentation of cash flows:  For purposes of reporting, cash flows from demand deposits, NOW accounts, savings accounts and short-term borrowings are reported on a net basis, since their original maturities are less than three months.  Cash flows from loans and certificates of deposit and other time deposits are reported net.

Advertising

Advertising:  Advertising costs are expensed as incurred

Trust services

Trust services:  Assets held in an agency or fiduciary capacity are not our assets and are not included in the accompanying consolidated balance sheets.  Trust services income is recognized on the cash basis in accordance with customary banking practice.  Reporting such income on a cash basis does not produce results that are materially different from those that would result from use of the accrual basis.

Transfers and Servicing of Financial Assets, Transfers of Financial Assets, Sales, Policy [Policy Text Block]

Transfer of Financial Assets:Transfers of financial assets are accounted for as sales, when control over the assets has been relinquished. Control over transferred assets is deemed to be surrendered when the assets have been isolated from us, the transferee obtains the right (free of condition that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and we do not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity date.

Variable interest entities

Unconsolidated subsidiary trusts:  In accordance with accounting principles generally accepted in the United States, we do not consolidate subsidiary trusts which issue guaranteed preferred beneficial interests in subordinated debentures (Trust Preferred Securities).  The Trust Preferred Securities qualify as Tier 1 capital for regulatory purposes. See Note 13 of our Notes to Consolidated Financial Statements for a discussion of our subordinated debentures owed to unconsolidated subsidiary trusts.

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Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Statement of Comprehensive Income [Abstract]
Net unrealized gain (loss) on cashflow hedge	$ (268)	$ 1,645	$ 2,556
Net unrealized gain (loss) on cashflow hedge, deferred taxes	(64)	395	946
Net unrealized gain (loss) on available for sale debt securities	5,244	(4,920)	4,378
Net unrealized gain (loss) on available for sale debt securities, deferred taxes	1,258	(1,181)	1,620
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, before Tax	1,938	622	(14)
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Tax	465	149	(5)
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss) Arising During Period, before Tax	(120)	(341)	521
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss) Arising During Period, Tax	(29)	(82)	193
Other Comprehensive Income (Loss), Pension Plan, Gain (Loss) Arising During Period, before Tax	(184)	0	0
Other Comprehensive Income (Loss), Pension Plan, Gain (Loss) Arising During Period, Tax	$ (44)	$ 0	$ 0

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Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
ASSETS
Cash and due from banks	$ 28,137	$ 23,061
Interest bearing deposits with other banks	33,751	36,479
Cash and cash equivalents	61,888	59,540
Debt Securities, Available-for-sale	276,355	293,147
Other investments	12,972	16,635
Loans held for sale, net	1,319	400
Loans and Leases Receivable, Net of Deferred Income	1,913,499	1,695,052
Loans and Leases Receivable, Allowance	(13,074)	(13,047)
Loans, net	1,900,425	1,682,005
Property held for sale	19,276	21,432
Premises and equipment, net	44,168	37,553
Accrued interest receivable	8,439	8,708
Intangible assets	23,022	25,842
Cash surrender value of life insurance policies	43,603	42,386
Other assets	12,025	12,938
Total assets	2,403,492	2,200,586
Deposits
Non interest bearing	260,553	222,120
Interest bearing	1,652,684	1,412,706
Total deposits	1,913,237	1,634,826
Short-term borrowings	199,345	309,084
Long-term borrowings	717	735
Subordinated debentures owed to unconsolidated subsidiary trusts	19,589	19,589
Other liabilities	22,840	16,522
Total liabilities	2,155,728	1,980,756
Commitments and Contingencies
Shareholders' Equity
Preferred stock, $1.00 par value, authorized 250,000 shares	0	0
Common stock and related surplus, $2.50 par value; authorized 20,000,000 shares; issued: 2019 - 12,474,641 shares, 2018 - 12,399,887 shares; outstanding: 2019 - 12,408,542 shares, 2018 - 12,312,933 shares	80,084	80,431
Unearned ESOP Shares	(714)	(939)
Retained earnings	165,859	141,354
Accumulated other comprehensive income	2,535	(1,016)
Total shareholders' equity	247,764	219,830
Total liabilities and shareholders' equity	$ 2,403,492	$ 2,200,586

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Allowance For Loan Losses

12 Months Ended

Dec. 31, 2019

Allowance for Loan and Lease Losses Write-offs, Net [Abstract]

Allowance for Loan Losses

ALLOWANCE FOR LOAN LOSSES

The allowance for loan losses is maintained at a level considered adequate to provide for our estimate of probable credit losses inherent in the loan portfolio.  The allowance is increased by provisions charged to operating expense and reduced by net charge-offs.  Loans are charged against the allowance for loan losses when we believe that collectability is unlikely.  While we use the best information available to make our evaluation, future adjustments may be necessary if there are significant changes in conditions.

The allowance is comprised of three distinct components:  (1) specific allowances related to loans individually evaluated, (2) quantitative allowances related to loans collectively evaluated and (3) qualitative allowances related to loans collectively evaluated.  A summary of the methodology we employ on a quarterly basis with respect to each of these components in order to evaluate the overall adequacy of our allowance for loan losses is as follows.

Specific Allowance for Loans Individually Evaluated

First, we identify loan relationships having aggregate balances in excess of $500,000 and that may also have credit weaknesses.  Such loan relationships are identified primarily through our analysis of internal loan evaluations, past due loan reports and loans adversely classified internally or by regulatory authorities.  Each loan so identified is then individually evaluated to determine whether it is impaired – that is, based on current information and events, it is probable that we will be unable to collect all amounts due in accordance with the contractual terms of the underlying loan agreement.  Substantially all of our impaired loans historically have been collateral dependent, meaning repayment of the loan is expected or is considered to be provided solely from the sale of the loan’s underlying collateral.  For such loans, we measure impairment based on the fair value of the loan’s collateral, which is generally determined utilizing current appraisals.  A specific allowance is established in an amount equal to the excess, if any, of the recorded investment in each impaired loan over the fair value of its underlying collateral, less estimated costs to sell. Our policy is to re-evaluate the fair value of collateral dependent loans at least every twelve months unless there is a known deterioration in the collateral’s value, in which case a new appraisal is obtained.

PCI loans are individually evaluated.  The evaluation of the PCI loans requires continued quarterly assessment of key assumptions and estimates similar to the initial fair value estimate, including changes in the severity of loss, timing and speed of payments, collateral value changes, expected cash flows and other relevant factors.  The quarterly assessment is compared to the recorded investment and a determination is made if an adjustment to the allowance for loan loss is deemed necessary.

Quantitative Allowance for Loans Collectively Evaluated

Second, we stratify the loan portfolio into eleven loan pools.  Quantitative allowances relative to each loan pool are established as follows: we calculate a historical loss rate utilizing the net loan charge-offs experienced for the most recent twelve quarters for each loan pool. This historical loss rate is applied to the aggregate recorded investment as of the financial statement date for each pool. We believe that the most recent twelve quarter historical loss rate to be the most indicative of the losses that can be expected. Purchased performing loans are collectively evaluated as their own separate category within each loan pool. The historical loss rate, as calculated above for each pool, is applied to the principal balance of purchased performing loans by pool. The calculated allowance is then compared to the estimated fair value discount remaining to determine if the discount remains adequate. If the discount remaining is not adequate, additional allowances will be recognized.  

Qualitative Allowance for Loans Collectively Evaluated

Third, we consider the necessity to adjust our average historical net loan charge-off rates relative to each of the above eleven loan pools for potential risks factors that could result in actual losses deviating from prior loss experience.  For example, if we observe a significant increase in delinquencies within the conventional mortgage loan pool above historical trends, an additional allocation to the average historical loan charge-off rate is applied.  Such qualitative risk factors considered are:  (1) levels of and trends in delinquencies and impaired loans, (2) levels of and trends in charge-offs and recoveries, (3) trends in volume and term of loans, (4) effects of any changes in risk selection and underwriting standards and other changes in lending policies, procedures and practice, (5) experience, ability and depth of lending management and other relevant staff, (6) national and local economic trends and conditions, (7) industry conditions and (8) effects of changes in credit concentrations.

An analysis of the allowance for loan losses for the years ended December 31, 2019, 2018 and 2017 is as follows:

Dollars in thousands	2019		2018		2017
Balance, beginning of year	$	13,047	$	12,565	$	11,674
Losses:
Commercial	281		248		23
Commercial real estate
Owner occupied	2		38		5
Non-owner occupied	170		619		65
Construction and development
Land and land development	2		259		3
Construction	—		—		33
Residential real estate
Non-jumbo	979		887		359
Jumbo	—		—		2
Home equity	24		26		158
Mortgage warehouse lines	—		—		—
Consumer	285		244		389
Other	360		282		251
Total	2,103		2,603		1,288
Recoveries:
Commercial	17		16		124
Commercial real estate
Owner occupied	21		23		89
Non-owner occupied	1		—		91
Construction and development
Land and land development	108		270		278
Construction	—		—		—
Real estate - mortgage
Non-jumbo	125		228		134
Jumbo	—		25		—
Home equity	19		10		30
Mortgage warehouse lines	—		—		—
Consumer	168		141		82
Other	121		122		101
Total	580		835		929
Net losses	1,523		1,768		359
Provision for loan losses	1,550		2,250		1,250
Balance, end of year	$	13,074	$	13,047	$	12,565

The following tables present the activity in the allowance for loan losses, balance in allowance for loan losses and recorded investment in loans by portfolio segment and based on impairment method as of December 31, 2019 and 2018.

	For the Year Ended December 31, 2019												At December 31, 2019								At December 31, 2019
	Allowance for loan losses												Allowance related to:								Loans
Dollars in thousands	Beginning  Balance		Charge- offs			Recoveries		Provision			Ending Balance		Loans individua- lly evaluated  for impairm- ent		Loans collective- ly evaluated for impairm- ent		Loans acquired  with deteriora- ted credit quality (PCI)		Total		Loans individua- lly evaluated for impairm- ent		Loans collectively evaluated for impairment		Loans acquired with deteriora- ted credit quality (PCI)		Total
Commercial	$	1,705	$	(281	)	$	17	$	(295	)	$	1,146	$	51	$	1,095	$	—	$	1,146	$	5,285	$	201,853	$	—	$	207,138
Commercial real estate
Owner occupied	2,214		(2		)	21		467			2,700		409		2,291		—		2,700		11,085		265,133		—		276,218
Non-owner occupied	5,742		(170		)	1		366			5,939		113		5,821		5		5,939		9,054		619,499		653		629,206
Construction and development
Land and land development	339		(2		)	108		155			600		589		11		—		600		1,960		82,152		—		84,112
Construction	64		—			—		178			242		—		242		—		242		—		37,523		—		37,523
Residential real estate
Non-jumbo	2,090		(979		)	125		576			1,812		173		1,624		15		1,812		5,263		348,453		1,247		354,963
Jumbo	379		—			—		(368		)	11		—		11		—		11		3,980		66,023		944		70,947
Home equity	167		(24		)	19		(24		)	138		—		138		—		138		523		76,045		—		76,568
Mortgage warehouse lines	—		—			—		—			—		—		—		—		—		—		126,237		—		126,237
Consumer	79		(285		)	168		173			135		—		135		—		135		13		36,457		—		36,470
Other	268		(360		)	121		322			351		—		351		—		351		—		14,117		—		14,117
Total	$	13,047	$	(2,103	)	$	580	$	1,550		$	13,074	$	1,335	$	11,719	$	20	$	13,074	$	37,163	$	1,873,492	$	2,844	$	1,913,499

	For the Year Ended December 31, 2018												At December 31, 2018								At December 31, 2018
	Allowance for loan losses												Allowance related to:								Loans
Dollars in thousands	Beginning  Balance		Charge- offs			Recoveries		Provision			Ending  Balance		Loans individua- lly evaluated  for impairm- ent		Loans collective- ly evaluated for impairm- ent		Loans acquired  with deteriora- ted credit quality (PCI)		Total		Loans individua- lly evaluated for impairm- ent		Loans collectively evaluated for impairment		Loans acquired with deteriora- ted credit quality (PCI)		Total
Commercial	$	1,303	$	(248	)	$	16	$	634		$	1,705	$	682	$	1,023	$	—	$	1,705	$	4,362	$	189,953	$	—	$	194,315
Commercial real    estate
Owner occupied	2,424		(38		)	23		(195		)	2,214		462		1,752		—		2,214		11,569		254,793		—		266,362
Non-owner   occupied	4,950		(619		)	—		1,411			5,742		9		5,729		4		5,742		9,855		553,809		1,162		564,826
Construction and development
Land and land development	641		(259		)	270		(313		)	339		298		41		—		339		5,824		63,009		—		68,833
Construction	153		—			—		(89		)	64		—		64		—		64		—		24,731		—		24,731
Residential real estate
Non-jumbo	1,911		(887		)	228		838			2,090		585		1,495		10		2,090		6,261		329,342		1,374		336,977
Jumbo	72		—			25		282			379		106		273		—		379		4,953		67,671		975		73,599
Home equity	638		(26		)	10		(455		)	167		—		167		—		167		523		80,387		—		80,910
Mortgage warehouse    lines	—		—			—		—			—		—		—		—		—		—		39,140		—		39,140
Consumer	210		(244		)	141		(28		)	79		—		79		—		79		9		32,451		—		32,460
Other	263		(282		)	122		165			268		—		268		—		268		—		12,899		—		12,899
Total	$	12,565	$	(2,603	)	$	835	$	2,250		$	13,047	$	2,142	$	10,891	$	14	$	13,047	$	43,356	$	1,648,185	$	3,511	$	1,695,052

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Consolidated Statements of Cash Flows Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2017
Statement of Cash Flows [Abstract]
Payments to Acquire Businesses, Gross	$ 12,740	$ 14,989

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Revenue Recognition Revenue from Contracts with Customers (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Revenue from Contracts with Customers [Line Items]
Insurance commissions	$ 1,911	$ 4,320	$ 4,005
Noninterest Income, Other Operating Income	1,210	1,022	750
Non-interest income within the scope of other ASC topics	5,806	2,420	1,526
Noninterest Income	19,203	17,422	14,427
Revenue in Scope ASC 606 [Member]
Revenue from Contracts with Customers [Line Items]
Insurance commissions	1,911	4,320	4,005
Noninterest Income, Other Operating Income	292	246	227
Total Revenue in ASC 606	13,397	15,002	12,901
Deposit Account [Member]
Revenue from Contracts with Customers [Line Items]
Revenue from Contract with Customer, Including Assessed Tax	5,094	4,631	4,109
Deposit Account [Member] | Revenue in Scope ASC 606 [Member]
Revenue from Contracts with Customers [Line Items]
Revenue from Contract with Customer, Including Assessed Tax	5,094	4,631	4,109
Credit and Debit Card [Member]
Revenue from Contracts with Customers [Line Items]
Revenue from Contract with Customer, Including Assessed Tax	3,536	3,152	2,697
Credit and Debit Card [Member] | Revenue in Scope ASC 606 [Member]
Revenue from Contracts with Customers [Line Items]
Revenue from Contract with Customer, Including Assessed Tax	3,536	3,152	2,697
Fiduciary and Trust [Member]
Revenue from Contracts with Customers [Line Items]
Revenue from Contract with Customer, Including Assessed Tax	2,564	2,653	1,863
Fiduciary and Trust [Member] | Revenue in Scope ASC 606 [Member]
Revenue from Contracts with Customers [Line Items]
Revenue from Contract with Customer, Including Assessed Tax	$ 2,564	$ 2,653	$ 1,863

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Condensed Financial Statements Of Parent Company Condensed Financial Statements of Parent Company (Narrative) (Details) - $ / shares	Dec. 31, 2019	Dec. 31, 2018
Preferred stock, shares authorized	250,000	250,000
Preferred stock, par value	$ 1.00	$ 1.00
Common stock, par value	$ 2.50	$ 2.50
Common stock, shares authorized	20,000,000	20,000,000
Common stock, shares issued	12,474,641	12,399,887
Common stock, shares outstanding	12,408,542	12,312,933
Employee Stock Ownership Plan (ESOP), Number of Suspense Shares	66,099	86,954

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Fair Value Measurements

12 Months Ended

Dec. 31, 2019

Fair Value Disclosures [Abstract]

Fair Value Measurements

FAIR VALUE MEASUREMENTS

In accordance with ASU 2016-01 - Recognition and measurement of Financial Assets and Financial Liabilities, fair value is based upon the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date.  A fair value hierarchy is utilized to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value.  The three levels of inputs used to measure fair value are as follows:

Level 1: Quoted prices (unadjusted) or identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date.

Level 2: Significant other observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active and other inputs that are observable or can be corroborated by observable market data.

Level 3: Significant unobservable inputs that reflect a company’s own assumptions about the assumptions that market participants would use in pricing an asset or liability.

Accordingly, securities available-for-sale and derivative financial instruments are recorded at fair value on a recurring basis. Additionally, from time to time, we may be required to record other assets at fair value on a nonrecurring basis, such as loans held for sale, property held for sale and impaired loans held for investment.  These nonrecurring fair value adjustments typically involve application of lower of cost or market accounting or write-downs of individual assets.

Following is a description of valuation methodologies used for assets and liabilities recorded at fair value.

Cash and Cash Equivalents: The carrying amount of cash and cash equivalents is a reasonable estimate of fair value due to their short term nature.

Debt Securities Available for Sale:  Debt Securities available-for-sale are recorded at fair value on a recurring basis. Fair value measurement is based upon quoted prices, if available.  If quoted prices are not available, fair values are measured using independent pricing models or other model-based valuation techniques such as the present value of future cash flows, adjusted for the security’s credit rating, prepayment assumptions and other factors such as credit loss assumptions.  Level 1 securities include those traded on an active exchange, such as the New York Stock Exchange, U.S. Treasury securities that are traded by dealers or brokers in active over-the-counter markets and money market funds.  Level 2 securities include mortgage-backed securities issued by government sponsored entities, municipal bonds and corporate debt securities. Certain trust preferred securities classified as corporate debt securities are Level 3 due to limited market trades of these classes of securities.

Other Investments: The carrying value of other investments, consisting principally of Federal Home Loan Bank stock, is a reasonable estimate of fair value of this stock. This stock is non-transferable and can only be redeemed at its par value by FHLB.

Derivative Financial Instruments:  Derivative financial instruments are recorded at fair value on a recurring basis. Fair value measurement is based on pricing models run by a third-party, utilizing observable market-based inputs.  All future floating cash flows are projected and both floating and fixed cash flows are discounted to the valuation date.  As a result, we classify interest rate swaps as Level 2.

Loans Held for Sale:  Loans held for sale are carried at the lower of cost or fair value.  The fair value of loans held for sale is based on what secondary markets are currently offering for portfolios with similar characteristics.  As such, we classify loans subject to nonrecurring fair value adjustments as Level 2.

Loans:  We do not record loans at fair value on a recurring basis. However, from time to time, a loan is considered impaired and an allowance for loan loss is established.  Loans for which it is probable that payment of interest and principal will not be made in accordance with the original contractual terms of the loan agreement are considered impaired.  Once a loan is identified as individually impaired, management measures impairment using one of several methods, including collateral value, liquidation value and discounted cash flows. Those impaired loans not requiring an allowance represent loans for which the discounted cash flows or collateral value exceeds the recorded investments in such loans. These loans are carried at recorded loan investment and therefore are not included in the following tables of loans measured at fair value. Impaired loans internally graded as substandard or doubtful are evaluated using the fair value of collateral method.  All other impaired loans are measured for impairment using the discounted cash flows method. Impaired loans where an allowance is established based on the fair value of collateral are included in the fair value hierarchy. When the fair value of the collateral is based on an observable market price or a current appraised value, we record the impaired loan as nonrecurring Level 2. When a current appraised value is not available and there is no observable market price, we record the impaired loan as nonrecurring Level 3.  

When impaired loans are deemed required to be included in the fair value hierarchy, management immediately begins the process of evaluating the estimated fair value of the underlying collateral to determine if a related specific allowance for loan losses or charge-off is necessary.  Current appraisals are ordered once a loan is deemed impaired if the existing appraisal is more than twelve months old, or more frequently if there is known deterioration in value. For recently identified impaired loans, a current appraisal may not be available at the financial statement date. Until the current appraisal is obtained, the original appraised value is discounted, as appropriate, to compensate for the estimated depreciation in the value of the loan’s underlying collateral since the date of the original appraisal.  Such discounts are generally estimated based upon management’s knowledge of sales of similar collateral within the applicable market area and its knowledge of other real estate market-related data as well as general economic trends.  When a new appraisal is received (which is generally within 3 months of a loan being identified as impaired), management then re-evaluates the fair value of the collateral and adjusts any specific allocated allowance for loan losses, as appropriate.  In addition, management also assigns a discount of 7–10% for the estimated costs to sell the collateral.

Property Held for Sale:  Property held for sale consists of real estate acquired in foreclosure or other settlement of loans. Foreclosed assets are initially recorded at fair value, less estimated selling costs, when acquired establishing a new cost basis. Such assets are carried on the balance sheet at the lower of the investment in the real estate or its fair value less estimated selling costs.  The fair value of foreclosed properties is determined on a nonrecurring basis generally utilizing current appraisals performed by an independent, licensed appraiser applying an income or market value approach using observable market data (Level 2).  Updated appraisals of foreclosed properties are generally obtained if the existing appraisal is more than 18 months old or more frequently if there is a known deterioration in value.  However, if a current appraisal is not available, the original appraised value is discounted, as appropriate, to compensate for the estimated depreciation in the value of the real estate since the date of its original appraisal.  Such discounts are generally estimated based upon management’s knowledge of sales of similar property within the applicable market area and its knowledge of other real estate market-related data as well as general economic trends (Level 3).  Upon foreclosure, any fair value adjustment is charged against the allowance for loan losses.  Subsequent fair value adjustments are recorded in the period incurred and included in other noninterest expense in the consolidated statements of income.

Assets and Liabilities Recorded at Fair Value on a Recurring Basis

The tables below present the recorded amount of assets and liabilities measured at fair value on a recurring basis.

	Balance at		Fair Value Measurements Using:
Dollars in thousands	December 31, 2019		Level 1		Level 2		Level 3
Available for sale securities
U.S. Government sponsored agencies	$	20,864	$	—	$	20,864	$	—
Mortgage backed securities:
Government sponsored agencies	70,975		—		70,975		—
Nongovernment sponsored entities	10,229		—		10,229		—
State and political subdivisions	49,973		—		49,973		—
Corporate debt securities	18,200		—		18,200		—
Asset-backed securities	33,014		—		33,014		—
Tax-exempt state and political subdivisions	73,100		—		73,100		—
Total available for sale securities	$	276,355	$	—	$	276,355	$	—
Derivative financial liabilities
Interest rate swaps	$	988	$	—	$	988	$	—

	Balance at		Fair Value Measurements Using:
Dollars in thousands	December 31, 2018		Level 1		Level 2		Level 3
Available for sale securities
U.S. Government sponsored agencies	$	26,140	$	—	$	26,140	$	—
Mortgage backed securities:
Government sponsored agencies	80,309		—		80,309		—
Nongovernment sponsored entities	614		—		614		—
State and political subdivisions	19,243		—		19,243		—
Corporate debt securities	14,512		—		14,512		—
Asset-backed securities	25,175		—		25,175		—
Tax-exempt state and political subdivisions	127,154		—		127,154		—
Total available for sale securities	$	293,147	$	—	$	293,147	$	—
Derivative financial assets
Interest rate swaps	$	555	$	—	$	555	$	—
Derivative financial liabilities
Interest rate swaps	$	411	$	—	$	411	$	—

Assets and Liabilities Recorded at Fair Value on a Nonrecurring Basis

We may be required, from time to time, to measure certain assets at fair value on a nonrecurring basis in accordance with U.S. generally accepted accounting principles.  These include assets that are measured at the lower of cost or market that were recognized at fair value below cost at the end of the period.  Assets measured at fair value on a nonrecurring basis are included in the tables below.

	Balance at		Fair Value Measurements Using:
Dollars in thousands	December 31, 2019		Level 1		Level 2		Level 3
Residential mortgage loans held for sale	$	1,319	$	—	$	1,319	$	—
Collateral-dependent impaired loans
Commercial	$	4,831	$	—	$	4,831	$	—
Commercial real estate	1,863		—		1,863		—
Construction and development	425		—		425		—
Residential real estate	692		—		566		126
Total collateral-dependent impaired loans	$	7,811	$	—	$	7,685	$	126
Property held for sale
Commercial real estate	$	1,304	$	—	$	1,304	$	—
Construction and development	12,182		—		12,182		—
Residential real estate	705		—		705		—
Total property held for sale	$	14,191	$	—	$	14,191	$	—

	Balance at		Fair Value Measurements Using:
Dollars in thousands	December 31, 2018		Level 1		Level 2		Level 3
Residential mortgage loans held for sale	$	400	$	—	$	400	$	—
Collateral-dependent impaired loans
Commercial	$	2,660	—		$	2,611	$	49
Commercial real estate	420		—		420		—
Construction and development	759		—		759		—
Residential real estate	763		—		763		—
Total collateral-dependent impaired loans	$	4,602	$	—	$	4,553	$	49
Property held for sale
Commercial real estate	$	1,677	$	—	$	1,677	$	—
Construction and development	16,363		—		16,363		—
Residential real estate	403		—		403		—
Total property held for sale	$	18,443	$	—	$	18,443	$	—

The following tables present the carrying amount, fair value, and placement in the fair value hierarchy of our financial instruments as of December 31, 2019 and December 31, 2018.

	At December 31,
	2019				Fair Value Measurements Using:
Dollars in thousands	Carrying Value		Estimated Fair Value		Level 1		Level 2		Level 3
Financial assets
Cash and cash equivalents	$	61,888	$	61,888	$	—	$	61,888	$	—
Securities available for sale	276,355		276,355		—		276,355		—
Other investments	12,972		12,972		—		12,972		—
Loans held for sale, net	1,319		1,319		—		1,319		—
Loans, net	1,900,425		1,901,020		—		7,685		1,893,335
Accrued interest receivable	8,439		8,439		—		8,439		—
Cash surrender value of life insurance policies	43,603		43,603		—		43,603		—
Derivative financial assets	—		—		—		—		—
	$	2,305,001	$	2,305,596	$	—	$	412,261	$	1,893,335
Financial liabilities
Deposits	$	1,913,237	$	1,918,610	$	—	$	1,918,610	$	—
Short-term borrowings	199,345		199,345		—		199,345		—
Long-term borrowings	717		854		—		854		—
Subordinated debentures owed to unconsolidated subsidiary trusts	19,589		19,589		—		19,589		—
Accrued interest payable	1,234		1,234		—		1,234		—
Derivative financial liabilities	988		988		—		988		—
	$	2,135,110	$	2,140,620	$	—	$	2,140,620	$	—

	At December 31
		2018				Fair Value Measurements Using:
Dollars in thousands		Carrying Value		Estimated Fair Value		Level 1		Level 2		Level 3
Financial assets
Cash and cash equivalents		$	59,540	$	59,540	$	—	$	59,540	$	—
Securities available for sale		293,147		293,147		—		293,147		—
Other investments		16,635		16,635		—		16,635		—
Loans held for sale, net		400		400		—		400		—
Loans, net		1,682,005		1,666,834		—		4,553		1,662,281
Accrued interest receivable		8,708		8,708		—		8,708		—
Cash surrender value of life insurance policies		42,386		42,386		—		42,386		—
Derivative financial assets		555		555		—		555		—
		$	2,103,376	$	2,088,205	$	—	$	425,924	$	1,662,281
Financial liabilities
Deposits		$	1,634,826	$	1,631,456	$	—	$	1,631,456	$	—
Short-term borrowings		309,084		309,084		—		309,084		—
Long-term borrowings		735		843		—		843		—
Subordinated debentures owed to unconsolidated subsidiary trusts		19,589		19,589		—		19,589		—
Accrued interest payable		1,102		1,102		—		1,102		—
Derivative financial liabilities		411		411		—		411		—
		$	1,965,747	$	1,962,485	$	—	$	1,962,485	$	—

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Premises And Equipment

12 Months Ended

Dec. 31, 2019

Property, Plant and Equipment [Abstract]

Premises and Equipment

PREMISES AND EQUIPMENT

Land is carried at cost, while premises and equipment are stated at cost less accumulated depreciation.  Depreciation is computed primarily by the straight-line method for premises and equipment over the estimated useful lives of the assets.  The estimated useful lives employed are on average 30 years for premises and 3 to 10 years for furniture and equipment.  Repairs and maintenance expenditures are charged to operating expenses as incurred.  Major improvements and additions to premises and equipment, including construction period interest costs, are capitalized.  No interest was capitalized during 2019, 2018, or 2017.

The major categories of premises and equipment and accumulated depreciation at December 31, 2019 and 2018 are summarized as follows:

Dollars in thousands	2019		2018
Land	$	10,645	$	10,415
Buildings and improvements	34,885		32,283
Furniture and equipment	25,616		19,783
	71,146		62,481
Less accumulated depreciation	26,978		24,928
Total premises and equipment, net	$	44,168	$	37,553

Depreciation expense for the years ended December 31, 2019, 2018 and 2017 approximated $2.61 million, $2.17 million and $1.89 million, respectively.

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Employee Benefits Employee Benefits (Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions) (Details)	3 Months Ended
	Mar. 31, 2019
7 Year Vesting Stock Appreciation Rights [Member]
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate	2.51%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate	2.30%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate	40.84%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term	7 years
5 Year Vesting Stock Appreciation Rights [Member]
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate	2.43%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate	2.30%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate	35.71%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term	5 years 6 months

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Commitments and Contingencies (Narrative) (Details) $ in Millions	Apr. 24, 2017 USD ($)
Commitments and Contingencies Disclosure [Abstract]
Litigation Settlement, Amount	$ 9.9

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Derivative Financial Instruments

12 Months Ended

Dec. 31, 2019

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Financial Instruments

DERIVATIVE FINANCIAL INSTRUMENTS

We use derivative instruments primarily to protect against the risk of adverse interest rate movements on the cash flows of certain assets and liabilities.  Derivative instruments represent contracts between parties that usually require little or no initial net investment and result in one party delivering cash or another type of asset to the other party based upon a notional amount and an underlying as specified in the contract.  A notional amount represents the number of units of a specific item, such as currency units.  An underlying represents a variable, such as an interest rate or price index.  The amount of cash or other asset delivered from one party to the other is determined based upon the interaction of the notional amount of the contract with the underlying.  Derivatives can also be implicit in certain contracts and commitments.

As with any financial instrument, derivative instruments have inherent risks, primarily market and credit risk.  Market risk associated with changes in interest rates is managed by establishing and monitoring limits as to the degree of risk that may be undertaken as part of our overall market risk monitoring process.  Credit risk occurs when a counterparty to a derivative contract with an unrealized gain fails to perform according to the terms of the agreement.  Credit risk is managed by monitoring the size and maturity structure of the derivative portfolio and applying uniform credit standards to all activities with credit risk.

All derivative instruments are recorded on the balance sheet at fair value in either other assets or other liabilities.  Changes in the fair value of derivatives are recorded each period in current earnings or other comprehensive income, depending on whether a derivative is designated as part of a hedge transaction and the type of hedge transaction.

Fair value hedges – For transactions in which we are hedging changes in fair value of an asset, liability, or a firm commitment, changes in the fair value of the derivative instrument are generally offset in the income statement by changes in the hedged item’s fair value.

Cash flow hedges – For transactions in which we are hedging the variability of cash flows related to a variable-rate asset, liability, or a forecasted transaction, changes in the fair value of the derivative instrument are reported in other comprehensive income. The gains and losses on the derivative instrument, which are reported in comprehensive income, are reclassified to    earnings in the periods in which earnings are impacted by the variability of cash flows of the hedged item.

The ineffective portion of all hedges is recognized in current period earnings.

Our derivatives are governed by the terms of ISDA Master netting agreements and Credit Support Annexes. The ISDA Master agreements allow counterparties to offset trades in a gain against trades in a loss to determine net exposure and allow for the right of offset in the event of either a default or an additional termination event. Credit Support Annexes govern the terms of daily collateral posting practices. Collateral practices mitigate the potential loss impact to affected parties by requiring liquid collateral to be posted on a scheduled basis to secure the aggregate net unsecured exposure. In addition to collateral, the right of offset allows counterparties to offset net derivative values with a defaulting party against certain other contractual receivables from other obligations due to the defaulting party in determining the net termination amount.

We have entered into two forward-starting, pay-fixed/receive LIBOR interest rate swaps as follows:

• A $30 million notional interest rate swap expiring on October 18, 2020, was designated as a cash flow hedge of $30 million of variable rate Federal Home Loan Bank advances.  Under the terms of this swap we will pay a fixed rate of 2.89% and receive a variable rate equal to one month LIBOR.   

• A $40 million notional interest rate swap expiring on October 18, 2021, was designated as a cash flow hedge of $40 million of variable rate Federal Home Loan Bank advances. Under the terms of this swap we will pay a fixed rate of 2.19% and receive a variable rate equal to one month LIBOR.

Also, at December 31, 2018, we were a party to a third forward-starting, pay-fixed/receive LIBOR interest rate swap as follows:

• A $40 million notional interest rate swap that expired October 18, 2019, was designated as a cash flow hedge of $40 million of variable rate Federal Home Loan Bank advances.  Under the terms of the swap we paid a fixed rate of 2.84% and received a variable rate equal to one month LIBOR.

We have entered into two pay fixed/receive variable interest rate swaps to hedge fair value variability of two commercial fixed rate loans with the same principal, amortization, and maturity terms of the underlying loans, which are designated as fair value hedges as follows:

• Under the terms of a $9.95 million original notional interest rate swap expiring January 15, 2025, we will pay a fixed rate of 4.33% and receive a variable rate equal to one month LIBOR plus 2.4000 percent.

• Under the terms of a $11.3 million original notional interest rate swap expiring January 15, 2026, we will pay a fixed rate of 4.30% and receive a variable rate equal to one month LIBOR plus 2.18000 percent .

A summary of our derivative financial instruments as of December 31, 2019 and 2018 follows:

	December 31, 2019
			Derivative Fair Value				Net Ineffective
Dollars in thousands	Notional Amount		Asset		Liability		Hedge Gains/(Losses)
CASH FLOW HEDGES
Pay-fixed/receive-variable interest rate swaps
Short term borrowings	$	70,000	$	—	$	679	$	—
FAIR VALUE HEDGES
Pay-fixed/receive-variable interest rate swaps
Commercial real estate loans	$	18,809	$	—	$	309	$	—

	December 31, 2018
			Derivative Fair Value				Net Ineffective
Dollars in thousands	Notional Amount		Asset		Liability		Hedge Gains/(Losses)
CASH FLOW HEDGES
Pay-fixed/receive-variable interest rate swaps
Short term borrowings	$	110,000	$	—	$	411	$	—
FAIR VALUE HEDGES
Pay-fixed/receive-variable interest rate swaps
Commercial real estate loans	$	19,399	$	555	$	—	$	—

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Regulatory Matters

12 Months Ended

Dec. 31, 2019

Banking and Thrift [Abstract]

Regulatory Matters

REGULATORY MATTERS

The primary source of funds for our dividends paid to our shareholders is dividends received from our subsidiaries.  Dividends paid by the subsidiary bank are subject to restrictions by banking law and regulations and require approval by the bank’s regulatory agency if dividends declared in any year exceed the bank’s current year's net income, as defined, plus its retained net profits of the two preceding years.  During 2020, the Bank will have $41.6 million plus net income for the interim periods through the date of declaration, available for dividends for distribution to us.  

Our subsidiary bank is required to maintain reserve balances with the Federal Reserve Bank.  The required reserve balance was $1,992,000 at December 31, 2019.

Our bank subsidiary, Summit Community Bank, Inc. (“Summit Community”), is subject to various regulatory capital requirements administered by the banking regulatory agencies. Under the capital adequacy guidelines and the regulatory framework for prompt corrective action, Summit Community must meet specific capital guidelines that involve quantitative measures of its assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting practices.  Our bank subsidiary’s capital amounts and classifications are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. Quantitative measures established by regulation to ensure capital adequacy require Summit Community to maintain minimum amounts and ratios of Common Equity Tier 1("CET1"), Total capital and Tier I capital (as defined in the regulations) to risk-weighted assets (as defined), and of Tier I capital (as defined) to average assets (as defined).  We believe, as of December 31, 2019, that our bank subsidiary met all capital adequacy requirements to which they were subject.

The most recent notifications from the banking regulatory agencies categorized Summit Community as well capitalized under the regulatory framework for prompt corrective action.  To be categorized as well capitalized, Summit Community must maintain minimum CET1, Total risk-based, Tier I risk-based, and Tier I leverage ratios as set forth in the table below.

In December 2018, the federal bank regulatory agencies approved a final rule modifying their regulatory capital rules to provide an option to phase-in over a period of three years the day-one regulatory capital effects of the implementation of ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326) - Measurement of Credit Losses on Financial Instruments. We intend to elect to this optional phase-in period upon adoption of the ASU effective January 1, 2020. 

The following tables present Summit's, as well as Summit Community's, actual and required minimum regulatory capital amounts and ratios as of December 31, 2019 and December 31, 2018. Capital levels required to be considered well capitalized are based upon prompt corrective action regulations, as amended.

	Actual				Minimum Required Capital - Basel III Fully Phased-in			Minimum Required To Be Well Capitalized
Dollars in thousands	Amount		Ratio		Amount	Ratio		Amount	Ratio
As of December 31, 2019
CET1 (to risk weighted assets)
Summit	$	224,679	11.1	%	N/A	N/A		N/A	N/A
Summit Community	244,045		12.1	%	141,183	7.0	%	131,099	6.5	%
Tier I Capital (to risk weighted assets)
Summit	243,679		12.1	%	N/A	N/A		N/A	N/A
Summit Community	244,045		12.1	%	171,437	8.5	%	161,352	8.0	%
Total Capital (to risk weighted assets)
Summit	256,753		12.7	%	N/A	N/A		N/A	N/A
Summit Community	257,119		12.7	%	212,579	10.5	%	202,456	10.0	%
Tier I Capital (to average assets)
Summit	243,679		10.5	%	N/A	N/A		N/A	N/A
Summit Community	244,045		10.6	%	92,092	4.0	%	115,116	5.0	%
As of December 31, 2018
CET1 (to risk weighted assets)
Summit	197,551		11.1	%	N/A	N/A		N/A	N/A
Summit Community	213,930		12.0	%	124,793	7.0	%	115,879	6.5	%
Tier I Capital (to risk weighted assets)
Summit	216,551		12.2	%	N/A	N/A		N/A	N/A
Summit Community	213,930		12.0	%	151,534	8.5	%	142,620	8.0	%
Total Capital (to risk weighted assets)
Summit	229,598		12.9	%	N/A	N/A		N/A	N/A
Summit Community	226,977		12.8	%	186,192	10.5	%	177,326	10.0	%
Tier I Capital (to average assets)
Summit	216,551		10.1	%	N/A	N/A		N/A	N/A
Summit Community	213,930		10.0	%	85,572	4.0	%	106,965	5.0	%

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Earnings Per Share (Narrative) (Details) - shares	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount		7,700
Stock Appreciation Rights (SARs) [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	222,740	87,615

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Earnings Per Share (Tables)

12 Months Ended

Dec. 31, 2019

Earnings Per Share [Abstract]

Schedule of Earnings Per Share, Basic and Diluted

The computations of basic and diluted earnings per share follow:

	For the Year Ended December 31,
	2019					2018					2017
			Common					Common					Common
Dollars in thousands,	Income		Shares	Per		Income		Shares	Per		Income		Shares	Per
except per share amounts	(Numerator)		(Denominator)	Share		(Numerator)		(Denominator)	Share		(Numerator)		(Denominator)	Share
Net income	$	31,866				$	28,072				$	11,915
Basic EPS	$	31,866	12,516,474	$	2.55	$	28,072	12,364,468	$	2.27	$	11,915	11,918,390	$	1.00
Effect of dilutive securities:
Stock options			4,935					7,071					11,338
SARs			53,737					53,034					19,517
RSUs			—					—					—
Diluted EPS	$	31,866	12,575,145	$	2.53	$	28,072	12,424,573	$	2.26	$	11,915	11,949,245	$	1.00

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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

Schedule of Components of Income Tax Expense (Benefit)

The components of applicable income tax expense for the years ended December 31, 2019, 2018 and 2017, are as follows:

Dollars in thousands	2019		2018			2017
Current
Federal	$	6,676	$	6,400		$	5,092
State	938		973			496
	7,614		7,373			5,588
Deferred
Federal	88		(304		)	4,027
State	15		(45		)	49
	103		(349		)	4,076
Total	$	7,717	$	7,024		$	9,664

Schedule of Effective Income Tax Rate Reconciliation

Reconciliation between the amount of reported income tax expense and the amount computed by multiplying the statutory income tax rates by book pretax income for the years ended December 31, 2019, 2018 and 2017 is as follows:

	2019					2018					2017
Dollars in thousands	Amount			Percent		Amount			Percent		Amount			Percent
Computed tax at applicable statutory rate	$	8,313		21		$	7,370		21		$	7,553		35
Increase (decrease) in taxes
resulting from:
Tax-exempt interest
and dividends, net	(728		)	(2	)	(1,011		)	(3	)	(1,569		)	(7	)
Non-deductible merger-related expenses	—			—		—			—		—			—
Low-income housing and rehabilitation tax credits	(177		)	—		(286		)	(1	)	(247		)	(1	)
Impact of enacted income tax rate change	—			—		—			—		3,461			16
State income taxes, net
of Federal income tax benefit	753			2		734			2		354			2
Other, net	(444		)	(1	)	217			1		112			—
Applicable income taxes	$	7,717		20		$	7,024		20		$	9,664		45

Schedule of Deferred Tax Assets and Liabilities

The tax effects of temporary differences, which give rise to our deferred tax assets and liabilities as of December 31, 2019 and 2018, are as follows:

Dollars in thousands	2019		2018
Deferred tax assets
Allowance for loan losses	$	3,017	$	2,921
Depreciation	29		405
Foreclosed properties	2,659		2,951
Deferred revenue	—		18
Deferred compensation	3,296		2,490
Other deferred costs and accrued expenses	534		645
Net unrealized loss on securities available for sale	—		265
Net unrealized loss on interest rate swaps	163		99
Capital loss carryforwards	—		166
Total	9,698		9,960
Deferred tax liabilities
Accretion on tax-exempt securities	62		29
Net unrealized gain on securities available for sale	994		—
Other post-retirement benefits	15		44
Purchase accounting adjustments and goodwill	2,099		2,253
Total	3,170		2,326
Net deferred tax assets	$	6,528	$	7,634

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Goodwill And Other Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Goodwill

The following table presents our goodwill activity by reporting unit for 2019.

	Goodwill Activity
Dollars in thousands	Community Banking		Insurance Services			Total
Balance, January 1, 2019	$	10,562	$	4,710		$	15,272
Reclassifications to goodwill	—		—			—
Acquired goodwill, net	2,096		—			2,096
Goodwill reduction in conjunction with sale of Summit Insurance Services, LLC	—		(4,710		)	(4,710		)
Balance, December 31, 2019	$	12,658	$	—		$	12,658

Summary Of Other Intangible Assets

	Other Intangible Assets
	December 31, 2019						December 31, 2018
Dollars in thousands	Community Banking		Insurance Services		Total		Community Banking		Insurances Services		Total
Identified intangible assets
Gross carrying amount	$	14,727	$	—	$	14,727	$	12,598	$	3,000	$	15,598
Less: accumulated amortization	4,363		—		4,363		2,728		2,300		5,028
Net carrying amount	$	10,364	$	—	$	10,364	$	9,870	$	700	$	10,570

Finite-lived Intangible Assets Amortization Expense

Amortization relative to our identified intangible assets is as follows:

	Core Deposit		Customer
Dollars in thousands	Intangible		Intangible
Actual:
2017	$	1,210	$	200
2018	1,471		200
2019	1,634		67
Expected:
2020	1,513		—
2021	1,393		—
2022	1,273		—
2023	1,152		—
2024	1,032		—
Thereafter	3,930		—

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Goodwill And Other Intangible Assets Schedule of Amortization Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Schedule of Amortization of Intangibles [Line Items]
Amortization of Intangible Assets	$ 1,701	$ 1,671	$ 1,410
Core Deposits
Schedule of Amortization of Intangibles [Line Items]
Amortization of Intangible Assets	1,634	1,471	1,210
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months	1,513
Finite-Lived Intangible Assets, Amortization Expense, Year Two	1,393
Finite-Lived Intangible Assets, Amortization Expense, Year Three	1,273
Finite-Lived Intangible Assets, Amortization Expense, Year Four	1,152
Finite-Lived Intangible Assets, Amortization Expense, Year Five	1,032
Finite-Lived Intangible Assets, Amortization Expense, after Year Five	3,930
Customer-Related Intangible Assets [Member]
Schedule of Amortization of Intangibles [Line Items]
Amortization of Intangible Assets	67	$ 200	$ 200
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months	0
Finite-Lived Intangible Assets, Amortization Expense, Year Two	0
Finite-Lived Intangible Assets, Amortization Expense, Year Three	0
Finite-Lived Intangible Assets, Amortization Expense, Year Four	0
Finite-Lived Intangible Assets, Amortization Expense, Year Five	0
Finite-Lived Intangible Assets, Amortization Expense, after Year Five	$ 0

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Securities (Summary of Volume of State and Political Subdivision Securities Held in Portfolio) (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Debt Securities, Available-for-sale [Line Items]
Debt Securities, Available-for-sale, Amortized Cost	$ 272,215	$ 294,251
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax	6,455	1,907
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax	2,315	3,011
Debt Securities, Available-for-sale	276,355	$ 293,147
CALIFORNIA
Debt Securities, Available-for-sale [Line Items]
Debt Securities, Available-for-sale, Amortized Cost	21,194
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax	1,109
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax	128
Debt Securities, Available-for-sale	22,175
MICHIGAN [Member]
Debt Securities, Available-for-sale [Line Items]
Debt Securities, Available-for-sale, Amortized Cost	10,864
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax	623
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax	0
Debt Securities, Available-for-sale	11,487
ILLINOIS
Debt Securities, Available-for-sale [Line Items]
Debt Securities, Available-for-sale, Amortized Cost	9,245
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax	410
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax	0
Debt Securities, Available-for-sale	9,655
TEXAS
Debt Securities, Available-for-sale [Line Items]
Debt Securities, Available-for-sale, Amortized Cost	8,934
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax	344
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax	64
Debt Securities, Available-for-sale	9,214
West Virginia [Member]
Debt Securities, Available-for-sale [Line Items]
Debt Securities, Available-for-sale, Amortized Cost	8,490
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax	206
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax	7
Debt Securities, Available-for-sale	$ 8,689

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Securities (Summary Of Securities Available For Sale In Unrealized Loss Position) (Details) $ in Thousands	Dec. 31, 2019 USD ($) security	Dec. 31, 2018 USD ($) security
Debt Securities, Available-for-sale [Line Items]
Debt Securities, Available-for-sale, Unrealized Loss Position, Number of Positions | security	88	134
Less than 12 months, Estimated Fair Value	$ 53,992	$ 75,442
Less than 12 months, Unrealized Loss	(668)	(791)
12 months or more, Estimated Fair Value	63,389	84,860
12 months or more, Unrealized Loss	(1,647)	(2,220)
Debt Securities, Available-for-sale, Unrealized Loss Position	117,381	160,302
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss	$ 2,315	$ 3,011
U.S. Government and agencies and corporations [Member]
Debt Securities, Available-for-sale [Line Items]
Debt Securities, Available-for-sale, Unrealized Loss Position, Number of Positions | security	15	15
Less than 12 months, Estimated Fair Value	$ 0	$ 12,185
Less than 12 months, Unrealized Loss	0	(184)
12 months or more, Estimated Fair Value	14,903	7,464
12 months or more, Unrealized Loss	(384)	(182)
Debt Securities, Available-for-sale, Unrealized Loss Position	14,903	19,649
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss	$ 384	$ 366
Government-sponsored agencies [Member]
Debt Securities, Available-for-sale [Line Items]
Debt Securities, Available-for-sale, Unrealized Loss Position, Number of Positions | security	21	37
Less than 12 months, Estimated Fair Value	$ 12,298	$ 23,277
Less than 12 months, Unrealized Loss	(96)	(241)
12 months or more, Estimated Fair Value	15,174	24,472
12 months or more, Unrealized Loss	(339)	(936)
Debt Securities, Available-for-sale, Unrealized Loss Position	27,472	47,749
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss	$ 435	$ 1,177
Nongovernment-sponsored entities [Member]
Debt Securities, Available-for-sale [Line Items]
Debt Securities, Available-for-sale, Unrealized Loss Position, Number of Positions | security	4	1
Less than 12 months, Estimated Fair Value	$ 8,323	$ 0
Less than 12 months, Unrealized Loss	(41)	0
12 months or more, Estimated Fair Value	0	436
12 months or more, Unrealized Loss	0	(1)
Debt Securities, Available-for-sale, Unrealized Loss Position	8,323	436
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss	$ 41	$ 1
State and Political Subdivisions General Obligations [Member]
Debt Securities, Available-for-sale [Line Items]
Debt Securities, Available-for-sale, Unrealized Loss Position, Number of Positions | security	10	8
Less than 12 months, Estimated Fair Value	$ 10,581	$ 0
Less than 12 months, Unrealized Loss	(171)	0
12 months or more, Estimated Fair Value	0	5,222
12 months or more, Unrealized Loss	0	(126)
Debt Securities, Available-for-sale, Unrealized Loss Position	10,581	5,222
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss	$ 171	$ 126
State and Political Subdivisions Water and Sewer Revenues [Member]
Debt Securities, Available-for-sale [Line Items]
Debt Securities, Available-for-sale, Unrealized Loss Position, Number of Positions | security	4
Less than 12 months, Estimated Fair Value	$ 4,421
Less than 12 months, Unrealized Loss	(114)
12 months or more, Estimated Fair Value	0
12 months or more, Unrealized Loss	0
Debt Securities, Available-for-sale, Unrealized Loss Position	4,421
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss	$ 114
State and Political Subdivisions Lease Revenues [Member]
Debt Securities, Available-for-sale [Line Items]
Debt Securities, Available-for-sale, Unrealized Loss Position, Number of Positions | security	4
Less than 12 months, Estimated Fair Value	$ 4,235
Less than 12 months, Unrealized Loss	(77)
12 months or more, Estimated Fair Value	0
12 months or more, Unrealized Loss	0
Debt Securities, Available-for-sale, Unrealized Loss Position	4,235
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss	$ 77
State and Political Subdivisions University Revenues [Member]
Debt Securities, Available-for-sale [Line Items]
Debt Securities, Available-for-sale, Unrealized Loss Position, Number of Positions | security	1
Less than 12 months, Estimated Fair Value	$ 1,307
Less than 12 months, Unrealized Loss	(16)
12 months or more, Estimated Fair Value	0
12 months or more, Unrealized Loss	0
Debt Securities, Available-for-sale, Unrealized Loss Position	1,307
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss	$ 16
State and political subdivisions, Other revenues [Member]
Debt Securities, Available-for-sale [Line Items]
Debt Securities, Available-for-sale, Unrealized Loss Position, Number of Positions | security	6	11
Less than 12 months, Estimated Fair Value	$ 6,517	$ 968
Less than 12 months, Unrealized Loss	(109)	(16)
12 months or more, Estimated Fair Value	0	9,450
12 months or more, Unrealized Loss	0	(170)
Debt Securities, Available-for-sale, Unrealized Loss Position	6,517	10,418
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss	$ 109	$ 186
Corporate debt securities [Member]
Debt Securities, Available-for-sale [Line Items]
Debt Securities, Available-for-sale, Unrealized Loss Position, Number of Positions | security	6	7
Less than 12 months, Estimated Fair Value	$ 1,686	$ 2,759
Less than 12 months, Unrealized Loss	(3)	(109)
12 months or more, Estimated Fair Value	3,739	4,587
12 months or more, Unrealized Loss	(146)	(195)
Debt Securities, Available-for-sale, Unrealized Loss Position	5,425	7,346
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss	$ 149	$ 304
Asset-backed Securities [Member]
Debt Securities, Available-for-sale [Line Items]
Debt Securities, Available-for-sale, Unrealized Loss Position, Number of Positions | security	15	9
Less than 12 months, Estimated Fair Value	$ 3,441	$ 20,129
Less than 12 months, Unrealized Loss	(34)	(123)
12 months or more, Estimated Fair Value	29,573	0
12 months or more, Unrealized Loss	(778)	0
Debt Securities, Available-for-sale, Unrealized Loss Position	33,014	20,129
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss	$ 812	$ 123
Tax Exempt State and Political Subdivisions General Obligations [Member]
Debt Securities, Available-for-sale [Line Items]
Debt Securities, Available-for-sale, Unrealized Loss Position, Number of Positions | security		25
Less than 12 months, Estimated Fair Value		$ 7,273
Less than 12 months, Unrealized Loss		(50)
12 months or more, Estimated Fair Value		16,830
12 months or more, Unrealized Loss		(294)
Debt Securities, Available-for-sale, Unrealized Loss Position		24,103
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss		$ 344
Tax Exempt State and Political Subdivisions Water and Sewer Revenues [Member]
Debt Securities, Available-for-sale [Line Items]
Debt Securities, Available-for-sale, Unrealized Loss Position, Number of Positions | security		7
Less than 12 months, Estimated Fair Value		$ 989
Less than 12 months, Unrealized Loss		(6)
12 months or more, Estimated Fair Value		4,311
12 months or more, Unrealized Loss		(92)
Debt Securities, Available-for-sale, Unrealized Loss Position		5,300
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss		$ 98
Tax Exempt State and Political Subdivisions Lease Revenues [Member]
Debt Securities, Available-for-sale [Line Items]
Debt Securities, Available-for-sale, Unrealized Loss Position, Number of Positions | security		2
Less than 12 months, Estimated Fair Value		$ 553
Less than 12 months, Unrealized Loss		0
12 months or more, Estimated Fair Value		557
12 months or more, Unrealized Loss		(7)
Debt Securities, Available-for-sale, Unrealized Loss Position		1,110
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss		$ 7
Tax Exempt State and Political Subdivisions Other Revenues [Member]
Debt Securities, Available-for-sale [Line Items]
Debt Securities, Available-for-sale, Unrealized Loss Position, Number of Positions | security	2	12
Less than 12 months, Estimated Fair Value	$ 1,183	$ 7,309
Less than 12 months, Unrealized Loss	(7)	(62)
12 months or more, Estimated Fair Value	0	11,531
12 months or more, Unrealized Loss	0	(217)
Debt Securities, Available-for-sale, Unrealized Loss Position	1,183	18,840
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss	$ 7	$ 279

XML

Deposits (Narrative) (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Deposits [Abstract]
Time deposits acquired through a third party (brokered deposits)	$ 150,600	$ 220,500
Time Deposits, $100,000 or More	387,849	417,300
Time Deposits in denominations that meet or exceed the FDIC Insurance limit	198,100	255,800
Related party deposit liabilities	$ 31,200	$ 37,100

XML

Accumulated Other Comprehensive Income (Loss) Accumulated Other Comprehensive Income (Loss) (Tables)

12 Months Ended

Dec. 31, 2019

Accumulated Other Comprehensive Income (Loss) [Abstract]

Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block]

The following are the changes in accumulated other comprehensive income (loss) by component, net of tax, for the years ended December 31, 2019 and 2018.

				December 31, 2019
Dollars in thousands	Gains and Losses on Pension Plan			Gains on Other Post-Retirement Benefits			Gains and Losses on Cash Flow Hedges			Unrealized Gains and Losses on Available-for-Sale Securities			Total
Beginning balance	$	—		$	139		$	(314	)	$	(841	)	$	(1,016	)
Other comprehensive income (loss) before reclassification, net of tax	(140		)	(91		)	(204		)	5,459			5,024
Amounts reclassified from accumulated other comprehensive income, net of tax	—			—			—			(1,473		)	(1,473		)
Net current period other comprehensive income (loss)	(140		)	(91		)	(204		)	3,986			3,551
Ending balance	$	(140	)	$	48		$	(518	)	$	3,145		$	2,535

	December 31, 2018
Dollars in thousands	Gains on Other Post-Retirement Benefits			Gains and Losses on Cash Flow Hedges			Unrealized Gains and Losses on Available-for-Sale Securities			Total
Beginning balance	$	398		$	(1,564	)	$	2,898		$	1,732
Other comprehensive income (loss) before reclassification, net of tax	(259		)	1,250			(3,266		)	(2,275		)
Amounts reclassified from accumulated other comprehensive income (loss), net of tax	—			—			(473		)	(473		)
Net current period other comprehensive income (loss)	(259		)	1,250			(3,739		)	(2,748		)
Ending balance	139			$	(314	)	$	(841	)	$	(1,016	)

XML

Acquisitions Acquisitions (Narrative) (Details) - USD ($)			12 Months Ended
	Jan. 01, 2020	Jan. 01, 2019	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Business Acquisition [Line Items]
Net income			$ 31,866,000	$ 28,072,000	$ 11,915,000
Goodwill			12,658,000	15,272,000
Peoples Bankshares Inc [Member]
Business Acquisition [Line Items]
Percentage of ownership acquired		100.00%
Business Acquisition, Share Price, Number Of Shares		465,931
Value of assets acquired		$ 133,086,000		133,000,000
Value of liabilities acquired		113,486,000		113,000,000
Revenues, Net of Interest Expense				3,600,000
Net income				$ 21,000
Goodwill		2,100,000
Cornerstone Financial Services Inc. [Member]
Business Acquisition [Line Items]
Percentage of ownership acquired	100.00%
Business Acquisition, Share Price, Number Of Shares	570,000
Value of assets acquired			195,000,000
Value of liabilities acquired			176,000,000
Revenues, Net of Interest Expense			3,300,000
Net income			638,000
MVB Bank [Member]
Business Acquisition [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets			190,000,000
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities			$ 40,000,000
Cash Consideration [Member] | Peoples Bankshares Inc [Member]
Business Acquisition [Line Items]
Consideration paid in acquisition		$ 12,700,000
Cash Consideration [Member] | Cornerstone Financial Services Inc. [Member]
Business Acquisition [Line Items]
Consideration paid in acquisition	$ 14,250,000
Core Deposits | Peoples Bankshares Inc [Member]
Business Acquisition [Line Items]
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life		15 years

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Fair Value Measurements (Assets And Liabilities Recorded At Fair Value On A Recurring Basis) (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt Securities, Available-for-sale	$ 276,355	$ 293,147
U.S. Government and agencies and corporations [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt Securities, Available-for-sale	20,864	26,140
Government-sponsored agencies [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt Securities, Available-for-sale	70,975	80,309
Nongovernment-sponsored entities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt Securities, Available-for-sale	10,229	614
Corporate debt securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt Securities, Available-for-sale	18,200	14,512
Asset-backed Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt Securities, Available-for-sale	33,014	25,175
Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt Securities, Available-for-sale	276,355	293,147
Fair Value, Measurements, Recurring [Member] | U.S. Government and agencies and corporations [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt Securities, Available-for-sale	20,864	26,140
Fair Value, Measurements, Recurring [Member] | Government-sponsored agencies [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt Securities, Available-for-sale	70,975	80,309
Fair Value, Measurements, Recurring [Member] | Nongovernment-sponsored entities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt Securities, Available-for-sale	10,229	614
Fair Value, Measurements, Recurring [Member] | State and political subdivisions [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt Securities, Available-for-sale	49,973	19,243
Fair Value, Measurements, Recurring [Member] | Corporate debt securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt Securities, Available-for-sale	18,200	14,512
Fair Value, Measurements, Recurring [Member] | Asset-backed Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt Securities, Available-for-sale	33,014	25,175
Fair Value, Measurements, Recurring [Member] | Tax-exempt state and political subdivisions [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt Securities, Available-for-sale	73,100	127,154
Fair Value, Measurements, Recurring [Member] | Interest Rate Swap [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value Hedge Assets		555
Fair Value Hedge Liabilities	988	411
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt Securities, Available-for-sale	0	0
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | U.S. Government and agencies and corporations [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt Securities, Available-for-sale	0	0
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Government-sponsored agencies [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt Securities, Available-for-sale	0	0
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Nongovernment-sponsored entities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt Securities, Available-for-sale	0	0
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | State and political subdivisions [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt Securities, Available-for-sale	0	0
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Corporate debt securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt Securities, Available-for-sale	0	0
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Asset-backed Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt Securities, Available-for-sale	0	0
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Tax-exempt state and political subdivisions [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt Securities, Available-for-sale	0	0
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Interest Rate Swap [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value Hedge Assets		0
Fair Value Hedge Liabilities	0	0
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt Securities, Available-for-sale	276,355	293,147
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | U.S. Government and agencies and corporations [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt Securities, Available-for-sale	20,864	26,140
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Government-sponsored agencies [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt Securities, Available-for-sale	70,975	80,309
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Nongovernment-sponsored entities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt Securities, Available-for-sale	10,229	614
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | State and political subdivisions [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt Securities, Available-for-sale	49,973	19,243
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Corporate debt securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt Securities, Available-for-sale	18,200	14,512
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Asset-backed Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt Securities, Available-for-sale	33,014	25,175
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Tax-exempt state and political subdivisions [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt Securities, Available-for-sale	73,100	127,154
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Interest Rate Swap [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value Hedge Assets		555
Fair Value Hedge Liabilities	988	411
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt Securities, Available-for-sale	0	0
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | U.S. Government and agencies and corporations [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt Securities, Available-for-sale	0	0
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Government-sponsored agencies [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt Securities, Available-for-sale	0	0
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Nongovernment-sponsored entities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt Securities, Available-for-sale	0	0
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | State and political subdivisions [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt Securities, Available-for-sale	0	0
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Corporate debt securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt Securities, Available-for-sale	0	0
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Asset-backed Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt Securities, Available-for-sale	0	0
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Tax-exempt state and political subdivisions [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt Securities, Available-for-sale	0	0
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Interest Rate Swap [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value Hedge Assets		0
Fair Value Hedge Liabilities	$ 0	$ 0

XML

Premises And Equipment (Major Categories Of Premises And Equipment And Accumulated Depreciation) (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Property, Plant and Equipment [Line Items]
Premises and equipment, gross	$ 71,146	$ 62,481
Less accumulated depreciation	26,978	24,928
Total premises and equipment, net	44,168	37,553
Land [Member]
Property, Plant and Equipment [Line Items]
Premises and equipment, gross	10,645	10,415
Building and improvements [Member]
Property, Plant and Equipment [Line Items]
Premises and equipment, gross	34,885	32,283
Furniture and equipment [Member]
Property, Plant and Equipment [Line Items]
Premises and equipment, gross	$ 25,616	$ 19,783

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Loans (Schedule Of Defaults During Stated Period Of Trouble Debt Restructurings) (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2019 USD ($) contract	Dec. 31, 2018 USD ($) contract
Financing Receivable, Impaired [Line Items]
Number of Defaults | contract	5	9
Recorded Investment at Default Date | $	$ 352	$ 1,004
Commercial Loan [Member]
Financing Receivable, Impaired [Line Items]
Number of Defaults | contract	0	2
Recorded Investment at Default Date | $	$ 0	$ 157
Non Owner Occupied [Member]
Financing Receivable, Impaired [Line Items]
Number of Defaults | contract	2	0
Recorded Investment at Default Date | $	$ 178	$ 0
Non Jumbo [Member]
Financing Receivable, Impaired [Line Items]
Number of Defaults | contract	3	7
Recorded Investment at Default Date | $	$ 174	$ 847

XML

Loans (Schedule Of Contractual Aging Of Recorded Investment In Past Due Loans By Class) (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due, Total	$ 16,237	$ 19,693
Current	1,897,262	1,675,359
Recorded Investment greater then 90 days and Accruing	42	36
Commercial Loan [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due, Total	599	788
Current	206,539	193,527
Recorded Investment greater then 90 days and Accruing	0	0
Owner Occupied [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due, Total	4,291	612
Current	271,927	265,750
Recorded Investment greater then 90 days and Accruing	0	0
Non Owner Occupied [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due, Total	2,421	2,167
Current	626,785	562,659
Recorded Investment greater then 90 days and Accruing	0	0
Land And Land Improvements [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due, Total	424	3,368
Current	83,688	65,465
Recorded Investment greater then 90 days and Accruing	0	0
Construction Loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due, Total	138	0
Current	37,385	24,731
Recorded Investment greater then 90 days and Accruing	0	0
Non Jumbo [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due, Total	6,875	10,108
Current	348,088	326,869
Recorded Investment greater then 90 days and Accruing	0	0
Jumbo [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due, Total	0	675
Current	70,947	72,924
Recorded Investment greater then 90 days and Accruing	0	0
Home Equity [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due, Total	983	1,196
Current	75,585	79,714
Recorded Investment greater then 90 days and Accruing	0	0
Mortgage Warehouse Lines [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due, Total	0	0
Current	126,237	39,140
Recorded Investment greater then 90 days and Accruing	0	0
Consumer Portfolio Segment [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due, Total	406	748
Current	36,064	31,712
Recorded Investment greater then 90 days and Accruing	42	36
Other Loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due, Total	100	31
Current	14,017	12,868
Recorded Investment greater then 90 days and Accruing	0	0
Financing Receivables, 30 to 59 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due, Total	6,562	6,007
Financing Receivables, 30 to 59 Days Past Due [Member] | Commercial Loan [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due, Total	216	254
Financing Receivables, 30 to 59 Days Past Due [Member] | Owner Occupied [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due, Total	119	0
Financing Receivables, 30 to 59 Days Past Due [Member] | Non Owner Occupied [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due, Total	879	156
Financing Receivables, 30 to 59 Days Past Due [Member] | Land And Land Improvements [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due, Total	208	190
Financing Receivables, 30 to 59 Days Past Due [Member] | Construction Loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due, Total	0	0
Financing Receivables, 30 to 59 Days Past Due [Member] | Non Jumbo [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due, Total	4,172	4,120
Financing Receivables, 30 to 59 Days Past Due [Member] | Jumbo [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due, Total	0	0
Financing Receivables, 30 to 59 Days Past Due [Member] | Home Equity [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due, Total	760	754
Financing Receivables, 30 to 59 Days Past Due [Member] | Mortgage Warehouse Lines [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due, Total	0	0
Financing Receivables, 30 to 59 Days Past Due [Member] | Consumer Portfolio Segment [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due, Total	208	502
Financing Receivables, 30 to 59 Days Past Due [Member] | Other Loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due, Total	0	31
Financing Receivables, 60 to 89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due, Total	1,256	2,927
Financing Receivables, 60 to 89 Days Past Due [Member] | Commercial Loan [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due, Total	0	51
Financing Receivables, 60 to 89 Days Past Due [Member] | Owner Occupied [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due, Total	137	0
Financing Receivables, 60 to 89 Days Past Due [Member] | Non Owner Occupied [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due, Total	179	255
Financing Receivables, 60 to 89 Days Past Due [Member] | Land And Land Improvements [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due, Total	28	4
Financing Receivables, 60 to 89 Days Past Due [Member] | Construction Loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due, Total	0	0
Financing Receivables, 60 to 89 Days Past Due [Member] | Non Jumbo [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due, Total	826	2,235
Financing Receivables, 60 to 89 Days Past Due [Member] | Jumbo [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due, Total	0	0
Financing Receivables, 60 to 89 Days Past Due [Member] | Home Equity [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due, Total	0	261
Financing Receivables, 60 to 89 Days Past Due [Member] | Mortgage Warehouse Lines [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due, Total	0	0
Financing Receivables, 60 to 89 Days Past Due [Member] | Consumer Portfolio Segment [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due, Total	86	121
Financing Receivables, 60 to 89 Days Past Due [Member] | Other Loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due, Total	0	0
Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due, Total	8,419	10,759
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Commercial Loan [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due, Total	383	483
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Owner Occupied [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due, Total	4,035	612
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Non Owner Occupied [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due, Total	1,363	1,756
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Land And Land Improvements [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due, Total	188	3,174
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Construction Loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due, Total	138	0
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Non Jumbo [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due, Total	1,877	3,753
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Jumbo [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due, Total	0	675
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Home Equity [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due, Total	223	181
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Mortgage Warehouse Lines [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due, Total	0	0
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Consumer Portfolio Segment [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due, Total	112	125
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Other Loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due, Total	$ 100	$ 0

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Allowance For Loan Losses (Summary Of Analysis Of Allowance For Loan Losses) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning balance	$ 13,047	$ 12,565	$ 11,674
Total Losses	2,103	2,603	1,288
Total Recoveries	580	835	929
Net losses	1,523	1,768	359
Provision for loan losses	1,550	2,250	1,250
Ending balance	13,074	13,047	12,565
Commercial Loan [Member]
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning balance	1,705	1,303
Total Losses	281	248	23
Total Recoveries	17	16	124
Provision for loan losses	(295)	634
Ending balance	1,146	1,705	1,303
Owner Occupied [Member]
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning balance	2,214	2,424
Total Losses	2	38	5
Total Recoveries	21	23	89
Provision for loan losses	467	(195)
Ending balance	2,700	2,214	2,424
Non Owner Occupied [Member]
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning balance	5,742	4,950
Total Losses	170	619	65
Total Recoveries	1	0	91
Provision for loan losses	366	1,411
Ending balance	5,939	5,742	4,950
Land And Land Development [Member]
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning balance	339	641
Total Losses	2	259	3
Total Recoveries	108	270	278
Provision for loan losses	155	(313)
Ending balance	600	339	641
Construction Loans [Member]
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning balance	64	153
Total Losses	0	0	33
Total Recoveries	0	0	0
Provision for loan losses	178	(89)
Ending balance	242	64	153
Non Jumbo [Member]
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning balance	2,090	1,911
Total Losses	979	887	359
Total Recoveries	125	228	134
Provision for loan losses	576	838
Ending balance	1,812	2,090	1,911
Jumbo [Member]
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning balance	379	72
Total Losses	0	0	2
Total Recoveries	0	25	0
Provision for loan losses	(368)	282
Ending balance	11	379	72
Home Equity [Member]
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning balance	167	638
Total Losses	24	26	158
Total Recoveries	19	10	30
Provision for loan losses	(24)	(455)
Ending balance	138	167	638
Mortgage Warehouse Lines [Member]
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning balance	0	0
Total Losses	0	0	0
Total Recoveries	0	0	0
Provision for loan losses	0	0
Ending balance	0	0	0
Consumer Portfolio Segment [Member]
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning balance	79	210
Total Losses	285	244	389
Total Recoveries	168	141	82
Provision for loan losses	173	(28)
Ending balance	135	79	210
Other
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning balance	268	263
Total Losses	360	282	251
Total Recoveries	121	122	101
Provision for loan losses	322	165
Ending balance	$ 351	$ 268	$ 263

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Consolidated Statements of Income - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Interest and fees on loans
Taxable	$ 96,500	$ 84,716	$ 74,365
Tax-exempt	615	567	543
Interest and dividends on securities
Interest Income, Securities, Operating, Taxable	6,511	5,341	5,071
Interest Income, Securities, Operating, Tax Exempt	2,850	4,246	3,939
Interest on interest bearing deposits with other banks	595	539	609
Total interest income	107,071	95,409	84,527
Interest expense
Interest on deposits	23,697	17,675	11,210
Interest on short-term borrowings	5,303	5,993	4,473
Interest on long-term borrowings and subordinated debentures	987	1,944	2,697
Total interest expense	29,987	25,612	18,380
Net interest income	77,084	69,797	66,147
Provision for loan losses	1,550	2,250	1,250
Net interest income after provision for loan losses	75,534	67,547	64,897
Other income
Insurance commissions	1,911	4,320	4,005
Available-for-sale Securities, Gross Realized Gain (Loss), Excluding Other than Temporary Impairments	1,938	622	(14)
Gain (Loss) on Disposition of Business	1,906	0	0
Bank owned life insurance income	1,044	1,022	1,017
Other	1,210	1,022	750
Total other income	19,203	17,422	14,427
Other expense
Salaries, commissions, and employee benefits	29,066	27,478	25,075
Net occupancy expense	3,417	3,364	3,011
Equipment expense	4,972	4,411	3,954
Professional fees	1,678	1,607	1,367
Marketing and Advertising Expense	698	654	578
Amortization of intangibles	1,701	1,671	1,410
FDIC premiums	88	830	1,065
Bank card expense	1,820	1,475	1,432
Foreclosed properties expense, net of losses	2,498	1,350	1,339
Litigation Settlement	0	0	9,900
Business Combination, Acquisition Related Costs	617	144	1,589
Other	8,599	6,889	7,025
Total other expense	55,154	49,873	57,745
Income before income taxes	39,583	35,096	21,579
Income tax expense	7,717	7,024	9,664
Net Income	31,866	28,072	11,915
Net income (loss) applicable to common shares	$ 31,866	$ 28,072	$ 11,915
Basic earnings per share	$ 2.55	$ 2.27	$ 1.00
Diluted earnings per share	$ 2.53	$ 2.26	$ 1.00
Fiduciary and Trust [Member]
Other income
Revenue from Contract with Customer, Including Assessed Tax	$ 2,564	$ 2,653	$ 1,863
Deposit Account [Member]
Other income
Revenue from Contract with Customer, Including Assessed Tax	5,094	4,631	4,109
Credit and Debit Card [Member]
Other income
Revenue from Contract with Customer, Including Assessed Tax	$ 3,536	$ 3,152	$ 2,697

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Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Stock Repurchased and Retired During Period, Shares	417,577	82,423	0
Common Stock, Dividends, Per Share, Declared	$ 0.59	$ 0.53	$ 0.44
Common stock issuances from reinvested dividends, number of shares	9,034	10,214	6,950
Stock Issued During Period, Shares, Acquisitions	465,931		1,537,912
Stock Issued During Period, Shares, Employee Stock Ownership Plan	20,855	19,780	39,805
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period	17,366	6,800	36,925

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Significant New Authoritative Accounting Guidance

12 Months Ended

Dec. 31, 2019

New Accounting Pronouncements and Changes in Accounting Principles [Abstract]

Significant New Authoritative Accounting Guidance

SIGNIFICANT NEW AUTHORITATIVE ACCOUNTING GUIDANCE

Recently Adopted

We adopted ASU No. 2016-02, Leases (Topic 842) and its related amendments on its required effective date of January 1, 2019 utilizing the modified retrospective approach. Since there was no net income impact upon adoption of the new guidance, a cumulative effect adjustment to opening retained earnings was not deemed necessary. The impact was insignificant to our consolidated financial position. Total net rent expense included in the accompanying consolidated financial statements was $121,000 in 2019, $305,000 in 2018 and $284,000 in 2017.

We adopted ASU No. 2017-08, Receivables-Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities on its required effective date of January 1, 2019. This guidance shortens the amortization period for premiums on certain callable debt securities to the earliest call date (with an explicit, noncontingent call feature that is callable at a fixed price and on a preset date), rather than contractual maturity date as currently required under GAAP. The ASU does not impact instruments without preset call dates such as mortgage-backed securities. The adoption of the new pronouncement did not have a significant impact on our consolidated financial statements.

Pending Adoption

During June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326) - Measurement of Credit Losses on Financial Instruments. This ASU, as amended, among other things, requires the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions and reasonable and supportable forecasts. Financial institutions and other organizations will now use forward-looking information to better inform their credit loss estimates. Many of the loss estimation techniques applied today will still be permitted, although the inputs to those techniques will change to reflect the full amount of expected credit losses. In addition, the ASU amends the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration. This ASU, as amended, is effective for SEC filers which are not Smaller Reporting Companies for fiscal years and interim periods within those fiscal years, beginning after December 15, 2019. Accordingly, we adopted the guidance on January 1, 2020, whereby we increased the allowances for loan credit losses and unfunded commitments by $8.89 million and recorded a cumulative-effect adjustment to retained earnings of $7.02 million (net of deferred income taxes of $1.87 million).

In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement. The amendments modify the disclosure requirements in Topic 820 to add disclosures regarding changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements and the narrative description of measurement uncertainty. Certain disclosure requirements in Topic 820 are also removed or modified. The amendments are effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Certain of the amendments are to be applied prospectively while others are to be applied retrospectively. Early adoption is permitted. We do not expect the adoption of ASU 2018-13 to have a material impact on our consolidated financial statements.

In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740) - Simplifying the Accounting for Income Taxes. The ASU is expected to reduce cost and complexity related to the accounting for income taxes by removing specific exceptions to general principles in Topic 740 (eliminating the need for an organization to analyze whether certain exceptions apply in a given period) and improving financial statement preparers’ application of certain income tax-related guidance. This ASU is part of the FASB’s simplification initiative to make narrow-scope simplifications and improvements to accounting standards through a series of short-term projects. For public business entities, the amendments are effective for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. Early adoption is permitted. We are currently assessing the impact that ASU 2019-12 will have on our consolidated financial statements.

In January 2020, the FASB issued ASU 2020-01, Investments - Equity Securities (Topic 321), Investments - Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815) - Clarifying the Interactions between Topic 321, Topic 323, and Topic 815. The ASU is based on a consensus of the Emerging Issues Task Force and is expected to increase comparability in accounting for these transactions. ASU 2016-01 made targeted improvements to accounting for financial instruments, including providing an entity the ability to measure certain equity securities without a readily determinable fair value at cost, less any impairment, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. Among other topics, the amendments clarify that an entity should consider observable transactions that require it to either apply or discontinue the equity method of accounting. For public business entities, the amendments in the ASU are effective for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. Early adoption is permitted. We do not expect the adoption of ASU 2020-01 to have a material impact on our consolidated financial statements.

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Condensed Financial Statements Of Parent Company (Statements of Income) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Available-for-sale Securities, Gross Realized Gain (Loss), Excluding Other than Temporary Impairments	$ 1,938	$ 622	$ (14)
Interest expense	29,987	25,612	18,380
Income before income taxes	39,583	35,096	21,579
Income tax expense	7,717	7,024	9,664
Net Income	31,866	28,072	11,915
Net income (loss) applicable to common shares	31,866	28,072	11,915
Parent Company [Member]
Dividends from subsidiaries	16,757	10,600	6,500
Other dividends and interest income	54	28	24
Management and service fees from subsidiaries	1,542	1,555	1,964
Total income	18,353	12,183	8,488
Interest expense	949	899	714
Operating expenses	3,755	2,565	2,462
Total expenses	4,704	3,464	3,176
Income before income taxes	13,649	8,719	5,312
Income tax expense	(276)	(374)	(129)
Income before equity in undistributed income of subsidiaries	13,925	9,093	5,441
Equity in undistributed income of subsidiaries	17,941	18,979	6,474
Net Income	$ 31,866	$ 28,072	$ 11,915

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Other Investments Other Investments

12 Months Ended

Dec. 31, 2019

Investments, All Other Investments [Abstract]

Investments and Other Noncurrent Assets [Text Block]

OTHER INVESTMENTS

Equity securities are carried at fair value, with changes in fair value reported in net income. Equity securities without readily determinable fair values are carried at cost, minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for an identical or similar investment. Our equity securities totaled $137,000 at December 31, 2019 and 2018.

We are a member bank of the Federal Home Loan Bank ("FHLB") system. Members are required to own a certain amount of stock based on the level of borrowings from FHLB and other factors. FHLB stock is carried at cost and periodically evaluated for impairment based on ultimate recovery of par value. Dividends are reported as income as earned. This stock totaled $8.9 million and $13.1 million at December 31, 2019 and 2018.

We have invested in two limited partnerships which own interests in diversified portfolios of qualified affordable housing projects. Also, we have purchased substantially all the interest in a limited liability company owning a qualified rehabilitated multi-family housing project. As result of these investments, Summit is allocated its proportional share of each investees’ operating losses and Federal Low-Income Housing and Rehabilitation Tax Credits. We use the proportional amortization method to account for each of these investments, whereby the cost of the investment is amortized in proportion to the amount of tax credits and other tax benefits received, and the net investment performance is recognized in the consolidated statement of income as a component of the provision for current income taxes. As of December 31, 2019 and 2018, our carrying value of these investments totaled $3.9 million and $3.35 million, respectively. For the years ended December 31, 2019, 2018 and 2017, we realized $669,000, $1,544,000 and $927,000, respectively, in tax credits and other tax benefits on these investments, against which we amortized these investments $552,000, $1.27 million and $680,000 and recognized income tax benefits of $117,000, $274,000 and $247,000.

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Income Taxes Income Taxes (Narrative) (Details) - USD ($) $ in Thousands		12 Months Ended
	Dec. 22, 2017	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Federal Income Tax Rate [Line Items]
Computed tax at applicable statutory rate	35.00%	21.00%	21.00%	35.00%
Deferred tax (benefit) expense	$ 3,500	$ 103	$ (349)	$ 4,076
Federal Income Tax Rate under TCJA [Member]
Federal Income Tax Rate [Line Items]
Computed tax at applicable statutory rate	21.00%

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Property Held For Sale (Tables)

12 Months Ended

Dec. 31, 2019

Property, Plant and Equipment Assets Held-for-sale Disclosure [Abstract]

Schedule Of Activity Of Property Held For Sale

The following table presents the activity of property held for sale during 2019, 2018 and 2017.

Dollars in thousands	2019			2018			2017
Beginning balance	$	21,432		$	21,470		$	24,504
Acquisitions	4,549			1,804			363
Acquisition of FCB	—			—			2,377
Capitalized improvements	512			1,304			316
Dispositions	(5,142		)	(2,370		)	(5,205		)
Valuation adjustments	(2,075		)	(776		)	(885		)
Balance at year end	$	19,276		$	21,432		$	21,470

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Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2019

Fair Value Disclosures [Abstract]

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

The tables below present the recorded amount of assets and liabilities measured at fair value on a recurring basis.

	Balance at		Fair Value Measurements Using:
Dollars in thousands	December 31, 2019		Level 1		Level 2		Level 3
Available for sale securities
U.S. Government sponsored agencies	$	20,864	$	—	$	20,864	$	—
Mortgage backed securities:
Government sponsored agencies	70,975		—		70,975		—
Nongovernment sponsored entities	10,229		—		10,229		—
State and political subdivisions	49,973		—		49,973		—
Corporate debt securities	18,200		—		18,200		—
Asset-backed securities	33,014		—		33,014		—
Tax-exempt state and political subdivisions	73,100		—		73,100		—
Total available for sale securities	$	276,355	$	—	$	276,355	$	—
Derivative financial liabilities
Interest rate swaps	$	988	$	—	$	988	$	—

	Balance at		Fair Value Measurements Using:
Dollars in thousands	December 31, 2018		Level 1		Level 2		Level 3
Available for sale securities
U.S. Government sponsored agencies	$	26,140	$	—	$	26,140	$	—
Mortgage backed securities:
Government sponsored agencies	80,309		—		80,309		—
Nongovernment sponsored entities	614		—		614		—
State and political subdivisions	19,243		—		19,243		—
Corporate debt securities	14,512		—		14,512		—
Asset-backed securities	25,175		—		25,175		—
Tax-exempt state and political subdivisions	127,154		—		127,154		—
Total available for sale securities	$	293,147	$	—	$	293,147	$	—
Derivative financial assets
Interest rate swaps	$	555	$	—	$	555	$	—
Derivative financial liabilities
Interest rate swaps	$	411	$	—	$	411	$	—

Fair Value Measurements, Nonrecurring

Assets measured at fair value on a nonrecurring basis are included in the tables below.

	Balance at		Fair Value Measurements Using:
Dollars in thousands	December 31, 2019		Level 1		Level 2		Level 3
Residential mortgage loans held for sale	$	1,319	$	—	$	1,319	$	—
Collateral-dependent impaired loans
Commercial	$	4,831	$	—	$	4,831	$	—
Commercial real estate	1,863		—		1,863		—
Construction and development	425		—		425		—
Residential real estate	692		—		566		126
Total collateral-dependent impaired loans	$	7,811	$	—	$	7,685	$	126
Property held for sale
Commercial real estate	$	1,304	$	—	$	1,304	$	—
Construction and development	12,182		—		12,182		—
Residential real estate	705		—		705		—
Total property held for sale	$	14,191	$	—	$	14,191	$	—

	Balance at		Fair Value Measurements Using:
Dollars in thousands	December 31, 2018		Level 1		Level 2		Level 3
Residential mortgage loans held for sale	$	400	$	—	$	400	$	—
Collateral-dependent impaired loans
Commercial	$	2,660	—		$	2,611	$	49
Commercial real estate	420		—		420		—
Construction and development	759		—		759		—
Residential real estate	763		—		763		—
Total collateral-dependent impaired loans	$	4,602	$	—	$	4,553	$	49
Property held for sale
Commercial real estate	$	1,677	$	—	$	1,677	$	—
Construction and development	16,363		—		16,363		—
Residential real estate	403		—		403		—
Total property held for sale	$	18,443	$	—	$	18,443	$	—

Fair Value, by Balance Sheet Grouping

	At December 31,
	2019				Fair Value Measurements Using:
Dollars in thousands	Carrying Value		Estimated Fair Value		Level 1		Level 2		Level 3
Financial assets
Cash and cash equivalents	$	61,888	$	61,888	$	—	$	61,888	$	—
Securities available for sale	276,355		276,355		—		276,355		—
Other investments	12,972		12,972		—		12,972		—
Loans held for sale, net	1,319		1,319		—		1,319		—
Loans, net	1,900,425		1,901,020		—		7,685		1,893,335
Accrued interest receivable	8,439		8,439		—		8,439		—
Cash surrender value of life insurance policies	43,603		43,603		—		43,603		—
Derivative financial assets	—		—		—		—		—
	$	2,305,001	$	2,305,596	$	—	$	412,261	$	1,893,335
Financial liabilities
Deposits	$	1,913,237	$	1,918,610	$	—	$	1,918,610	$	—
Short-term borrowings	199,345		199,345		—		199,345		—
Long-term borrowings	717		854		—		854		—
Subordinated debentures owed to unconsolidated subsidiary trusts	19,589		19,589		—		19,589		—
Accrued interest payable	1,234		1,234		—		1,234		—
Derivative financial liabilities	988		988		—		988		—
	$	2,135,110	$	2,140,620	$	—	$	2,140,620	$	—

	At December 31
		2018				Fair Value Measurements Using:
Dollars in thousands		Carrying Value		Estimated Fair Value		Level 1		Level 2		Level 3
Financial assets
Cash and cash equivalents		$	59,540	$	59,540	$	—	$	59,540	$	—
Securities available for sale		293,147		293,147		—		293,147		—
Other investments		16,635		16,635		—		16,635		—
Loans held for sale, net		400		400		—		400		—
Loans, net		1,682,005		1,666,834		—		4,553		1,662,281
Accrued interest receivable		8,708		8,708		—		8,708		—
Cash surrender value of life insurance policies		42,386		42,386		—		42,386		—
Derivative financial assets		555		555		—		555		—
		$	2,103,376	$	2,088,205	$	—	$	425,924	$	1,662,281
Financial liabilities
Deposits		$	1,634,826	$	1,631,456	$	—	$	1,631,456	$	—
Short-term borrowings		309,084		309,084		—		309,084		—
Long-term borrowings		735		843		—		843		—
Subordinated debentures owed to unconsolidated subsidiary trusts		19,589		19,589		—		19,589		—
Accrued interest payable		1,102		1,102		—		1,102		—
Derivative financial liabilities		411		411		—		411		—
		$	1,965,747	$	1,962,485	$	—	$	1,962,485	$	—

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Derivative Financial Instruments (Details) - Interest Rate Swap [Member] - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Short-term Debt [Member] | Cash Flow Hedging [Member]
Derivative [Line Items]
Derivative Liability, Notional Amount	$ 70,000	$ 110,000
Fair Value Hedge Assets	0	0
Fair Value Hedge Liabilities	679	411
Gain (Loss) on Fair Value Hedge Ineffectiveness, Net	0	0
Commercial Real Estate [Member] | Fair Value Hedging [Member]
Derivative [Line Items]
Derivative Asset, Notional Amount	18,809	19,399
Fair Value Hedge Assets	0	555
Fair Value Hedge Liabilities	309	0
Gain (Loss) on Fair Value Hedge Ineffectiveness, Net	$ 0	$ 0

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Borrowed Funds (Long-term Borrowings) (Narrative) (Details) - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Debt Disclosure [Abstract]
Long-term borrowings	$ 717,000	$ 735,000
Average interest rate paid on long-term borrowings	5.34%	4.26%

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Revenue Recognition Revenue from Contracts with Customers (Notes)

12 Months Ended

Dec. 31, 2019

Revenue from Contracts with Customers [Abstract]

Revenue from Contracts with Customers

REVENUE FROM CONTRACTS WITH CUSTOMERS

Interest income, loan fees, realized securities gains and losses, bank owned life insurance income and mortgage banking revenue are not in the scope of ASC Topic 606, Revenue from Contracts with Customers. With the exception of gains or losses on sales of foreclosed properties, all of our revenue from contracts with customers in the scope of ASC 606 is recognized within Noninterest Income in the Consolidated Statements of Income. Incremental costs of obtaining a contract are expensed when incurred when the amortization period is one year or less.

A description of our significant sources of revenue accounted for under ASC 606 follows:

Service fees on deposit accounts are fees we charge our deposit customers for transaction-based, account maintenance and overdraft services. Transaction-based fees, which are earned based on specific transactions or customer activity within a customer’s deposit account, are recognized at the time the related transaction or activity occurs, as it is at this point when we fulfill the customer’s request. Account maintenance fees, which relate primarily to monthly maintenance, are earned over the course of a month, representing the period over which Summit satisfied the performance obligation. Overdraft fees are recognized when the overdraft occurs. Service fees on deposit accounts are paid through a direct charge to the customer’s account.

Bank card revenue is comprised of interchange revenue and ATM fees. Interchange revenue is earned when Summit’s debit and credit cardholders conduct transactions through Mastercard and other payment networks. Interchange fees represent a percentage of the underlying cardholder’s transaction value and are generally recognized daily, concurrent with the transaction processing services provided to the cardholder. ATM fees are earned when a non-Summit cardholder uses a Summit ATM. ATM fees are recognized daily, as the related ATM transactions are settled.

Trust and wealth management fees consist of 1) trust fees and 2) commissions earned from an independent, third-party broker-dealer. We earn trust fees from our contracts with trust clients to administer or manage assets for investment. Trust fees are earned over time (generally monthly) as Summit provides the contracted services and are assessed based on the value of assets under management at each month-end. We earn commissions from investment brokerage services provided to our clients by an independent, third-party broker-dealer. We receive monthly commissions from the third-party broker-dealer based upon client activity for the previous month.

Insurance commissions principally consisted of commissions we earned as agents of insurers for selling group employee benefit and property and casualty insurance products to clients. Group employee benefit insurance commissions were recognized over time (generally monthly) as the related customary implied servicing obligations of group policyholders were fulfilled. Property and casualty insurance commissions were recognized using methods which approximated the time of placement of the underlying policy. We were paid insurance commissions ratably as the related policy premiums were paid by clients.

The following table illustrates our total non-interest income segregated by revenues within the scope of ASC Topic 606 and those which are within the scope of other ASC Topics: 

	For the Year Ended December 31,
Dollars in thousands	2019		2018		2017
Service fees on deposit accounts	$	5,094	$	4,631	$	4,109
Bank card revenue	3,536		3,152		2,697
Trust and wealth management fees	2,564		2,653		1,863
Insurance commissions	1,911		4,320		4,005
Other	292		246		227
Net revenue from contracts with customers	13,397		15,002		12,901
Non-interest income within the scope of other ASC topics	5,806		2,420		1,526
Total noninterest income	$	19,203	$	17,422	$	14,427

XML

Fair Value Measurements (Assets And Liabilities Recorded At Fair Value On A Nonrecurring Basis) (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Residential mortgage loans held for sale	$ 1,319	$ 400
Collateral-dependent impaired loans	7,811	4,602
Property held for sale	14,191	18,443
Commercial [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Collateral-dependent impaired loans	4,831	2,660
Commercial real estate [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Collateral-dependent impaired loans	1,863	420
Property held for sale	1,304	1,677
Construction and development [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Collateral-dependent impaired loans	425	759
Property held for sale	12,182	16,363
Residential real estate [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Collateral-dependent impaired loans	692	763
Property held for sale	705	403
Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Residential mortgage loans held for sale	0	0
Collateral-dependent impaired loans	0	0
Property held for sale	0	0
Fair Value, Inputs, Level 1 [Member] | Commercial [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Collateral-dependent impaired loans	0	0
Fair Value, Inputs, Level 1 [Member] | Commercial real estate [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Collateral-dependent impaired loans	0	0
Property held for sale	0	0
Fair Value, Inputs, Level 1 [Member] | Construction and development [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Collateral-dependent impaired loans	0	0
Property held for sale	0	0
Fair Value, Inputs, Level 1 [Member] | Residential real estate [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Collateral-dependent impaired loans	0	0
Property held for sale	0	0
Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Residential mortgage loans held for sale	1,319	400
Collateral-dependent impaired loans	7,685	4,553
Property held for sale	14,191	18,443
Fair Value, Inputs, Level 2 [Member] | Commercial [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Collateral-dependent impaired loans	4,831	2,611
Fair Value, Inputs, Level 2 [Member] | Commercial real estate [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Collateral-dependent impaired loans	1,863	420
Property held for sale	1,304	1,677
Fair Value, Inputs, Level 2 [Member] | Construction and development [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Collateral-dependent impaired loans	425	759
Property held for sale	12,182	16,363
Fair Value, Inputs, Level 2 [Member] | Residential real estate [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Collateral-dependent impaired loans	566	763
Property held for sale	705	403
Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Residential mortgage loans held for sale	0	0
Collateral-dependent impaired loans	126	49
Property held for sale	0	0
Fair Value, Inputs, Level 3 [Member] | Commercial [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Collateral-dependent impaired loans	0	49
Fair Value, Inputs, Level 3 [Member] | Commercial real estate [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Collateral-dependent impaired loans	0	0
Property held for sale	0	0
Fair Value, Inputs, Level 3 [Member] | Construction and development [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Collateral-dependent impaired loans	0	0
Property held for sale	0	0
Fair Value, Inputs, Level 3 [Member] | Residential real estate [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Collateral-dependent impaired loans	126	0
Property held for sale	$ 0	$ 0

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Revenue Recognition Revenue from Contracts with Customers (Tables)

12 Months Ended

Dec. 31, 2019

Revenue from Contracts with Customers [Abstract]

Revenue from Contracts with Customers [Table Text Block]

The following table illustrates our total non-interest income segregated by revenues within the scope of ASC Topic 606 and those which are within the scope of other ASC Topics: 

	For the Year Ended December 31,
Dollars in thousands	2019		2018		2017
Service fees on deposit accounts	$	5,094	$	4,631	$	4,109
Bank card revenue	3,536		3,152		2,697
Trust and wealth management fees	2,564		2,653		1,863
Insurance commissions	1,911		4,320		4,005
Other	292		246		227
Net revenue from contracts with customers	13,397		15,002		12,901
Non-interest income within the scope of other ASC topics	5,806		2,420		1,526
Total noninterest income	$	19,203	$	17,422	$	14,427

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Acquisitions Schedule of Consideration Paid, Assets Acquired and Liabilities Assumed in Acquisition of PBI (Details) - USD ($) $ in Thousands	Jan. 01, 2019	Dec. 31, 2019	Dec. 31, 2018
Business Acquisition [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property Held-For-Sale	$ 0
Goodwill		$ 12,658	$ 15,272
As Recorded By Summit [Member]
Business Acquisition [Line Items]
Consideration paid in acquisition	21,737
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Cash and Equivalents	33,329
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Fair Value Adjustment, Cash and Cash Equivalents	(93)
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Marketable Securities	55,113
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Fair Value Adjustment, Securities Available for Sale	(93)
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Purchased Performing Loans	41,399
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Fair Value Adjustment, Purchased Performing Loans	(977)
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Purchased Credit Impaired Loans	0
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Fair Value Adjustment, Purchased Credit Impaired Loans	0
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Financial Assets, Allowance For Loan Losses	0
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Fair Value Adjustment, Allowance For Loan Losses	410
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment	815
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Fair Value Adjustment, Property, Plant, And Equipment	(567)
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Fair Value Adjustment, Property Held-For-Sale	0
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles	2,129
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Fair Value Adjustment, Intangibles	2,129
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Other Noncurrent Assets	1,010
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Fair Value Adjustment, Other Assets	(100)
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets	133,795
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Fair Value Adjustment, Assets	709
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deposits	112,379
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Fair Value Adjustment, Deposits	315
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Other	1,775
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Fair Value Adjustment, Other Liabilities	353
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities	114,154
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Fair Value Adjustment, Liabilities	668
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net	19,641
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Fair Value Adjustment, Assets (Liabilities), Net	41
Goodwill	2,096
Peoples Bankshares Inc [Member]
Business Acquisition [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Cash and Equivalents	33,422
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Marketable Securities	55,206
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Purchased Performing Loans	42,376
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Purchased Credit Impaired Loans	0
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Financial Assets, Allowance For Loan Losses	(410)
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment	1,382
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property Held-For-Sale	0
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles	0
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Other Noncurrent Assets	1,110
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets	133,086		133,000
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deposits	112,064
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Other	1,422
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities	113,486		$ 113,000
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net	19,600
Goodwill	2,100
Cash Consideration [Member] | As Recorded By Summit [Member]
Business Acquisition [Line Items]
Consideration paid in acquisition	12,740
Cash Consideration [Member] | Peoples Bankshares Inc [Member]
Business Acquisition [Line Items]
Consideration paid in acquisition	12,700
Stock Consideration [Member] | As Recorded By Summit [Member]
Business Acquisition [Line Items]
Consideration paid in acquisition	$ 8,997

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Property Held For Sale Property Held for Sale (Narrative) (Details)	Dec. 31, 2019 USD ($)
Property, Plant and Equipment Assets Held-for-sale Disclosure [Abstract]
Foreclosed Property Consumer Residential Real Estate	$ 1,600,000.0

XML

Loans (Schedule Of Restructured Trouble Debt Restructuring By Class) (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2019 USD ($) contract	Dec. 31, 2018 USD ($) contract
Financing Receivable, Modifications [Line Items]
Number of Modifications | contract	13	12
Pre-modification Recorded Investment	$ 1,074	$ 1,239
Post-modification Recorded Investment	$ 1,074	$ 1,239
Commercial Loan [Member]
Financing Receivable, Modifications [Line Items]
Number of Modifications | contract	0	2
Pre-modification Recorded Investment	$ 0	$ 157
Post-modification Recorded Investment	$ 0	$ 157
Owner Occupied [Member]
Financing Receivable, Modifications [Line Items]
Number of Modifications | contract	1	0
Pre-modification Recorded Investment	$ 325	$ 0
Post-modification Recorded Investment	$ 325	$ 0
Non Owner Occupied [Member]
Financing Receivable, Modifications [Line Items]
Number of Modifications | contract	4	2
Pre-modification Recorded Investment	$ 324	$ 183
Post-modification Recorded Investment	$ 324	$ 183
Non Jumbo [Member]
Financing Receivable, Modifications [Line Items]
Number of Modifications | contract	7	8
Pre-modification Recorded Investment	$ 410	$ 899
Post-modification Recorded Investment	$ 410	$ 899
Consumer Portfolio Segment [Member]
Financing Receivable, Modifications [Line Items]
Number of Modifications | contract	1	0
Pre-modification Recorded Investment	$ 15	$ 0
Post-modification Recorded Investment	$ 15	$ 0

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Loans (Loan Maturities) (Details) $ in Thousands	Dec. 31, 2019 USD ($)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loan maturities, Within 1 Year	$ 392,524
Loan maturities, After 1 but within 5 Years	282,889
Loan maturities, After 5 Years	1,238,086
Loans due after one year with: Variable rates	564,490
Loans due after one year with: Fixed rates	956,485
Loans due after one year	1,520,975
Commercial Loan [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loan maturities, Within 1 Year	101,625
Loan maturities, After 1 but within 5 Years	63,132
Loan maturities, After 5 Years	42,381
Commercial Real Estate Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loan maturities, Within 1 Year	88,846
Loan maturities, After 1 but within 5 Years	119,993
Loan maturities, After 5 Years	696,585
Construction Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loan maturities, Within 1 Year	43,713
Loan maturities, After 1 but within 5 Years	28,611
Loan maturities, After 5 Years	49,311
Residential Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loan maturities, Within 1 Year	25,830
Loan maturities, After 1 but within 5 Years	39,072
Loan maturities, After 5 Years	437,576
Mortgage Warehouse Lines [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loan maturities, Within 1 Year	126,237
Loan maturities, After 1 but within 5 Years	0
Loan maturities, After 5 Years	0
Consumer Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loan maturities, Within 1 Year	5,247
Loan maturities, After 1 but within 5 Years	25,849
Loan maturities, After 5 Years	5,374
Other Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loan maturities, Within 1 Year	1,026
Loan maturities, After 1 but within 5 Years	6,232
Loan maturities, After 5 Years	$ 6,859

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Allowance For Loan Losses (Narrative) (Details)	12 Months Ended
	Dec. 31, 2019 USD ($) loan_pool reserve_component
Allowance for Loan and Lease Losses Write-offs, Net [Abstract]
Number of distinct reserve components | reserve_component	3
Aggregate balance threshold for evaluating individual loans | $	$ 500,000
Period for re-evaluation of fair value for collateral dependent loans	12 months
Number of loan pools for stratification | loan_pool	11
Historical net loan charge-off rate	36 months

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Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Cash Flows from Operating Activities
Net income	$ 31,866	$ 28,072	$ 11,915
Adjustments to reconcile net earnings to net cash
Depreciation	2,614	2,168	1,887
Provision for loan losses	1,550	2,250	1,250
Stock compensation expense	590	391	385
Deferred income tax expense	103	(349)	4,076
Loans originated for sale	(22,518)	(15,939)	(16,248)
Proceeds from loans sold	22,004	15,834	16,747
Gain (Loss) on Sales of Loans, Net	(405)	(295)	(323)
Available-for-sale Securities, Gross Realized Gain (Loss), Excluding Other than Temporary Impairments	1,938	622	(14)
Loss on disposal of assets	(236)	74	(133)
Gain (Loss) on Disposition of Business	(1,906)	0	0
Write down of foreclosed properties	2,075	776	885
Amortization of securities premiums (accretion of discounts), net	2,263	3,412	4,190
Amortization (accretion) related to acquisitions, net	(998)	(580)	(1,051)
Amortization of intangibles	1,701	1,671	1,410
Increase in cash surrender value of bank owned life insurance	(1,148)	(1,028)	(707)
Decrease in accrued interest receivable	699	(378)	(1,102)
(Increase) decrease in other assets	133	(320)	668
Increase (decrease) in other liabilities	4,478	3,384	510
Net cash provided by operating activities	40,927	38,521	24,373
Cash Flows from Investing Activities
Proceeds from maturities and calls of securities available for sale	1,871	1,145	2,700
Proceeds from Sale of Debt Securities, Available-for-sale	142,423	107,559	152,882
Principal payments received on securities available for sale	22,870	24,814	31,902
Payments to Acquire Debt Securities, Available-for-sale	90,341	105,789	148,174
Purchases of other investments	(18,228)	(14,550)	(18,604)
Redemption of Federal Home Loan Bank Stock	21,412	11,717	15,932
Net principal payments received on loans	(181,615)	(92,189)	(61,104)
Purchases of premises and equipment	(9,218)	(5,545)	(6,185)
Proceeds from disposal of premises and equipment	860	42	0
Improvements to property held for sale	(512)	(1,304)	(316)
Proceeds from sales of other repossessed assets & property held for sale	5,271	2,365	5,883
Proceeds from Divestiture of Businesses	7,117	0	0
Cash Acquired from Acquisition	20,589	0	39,053
Payment to Acquire Life Insurance Policy, Investing Activities	69	0	0
Net cash provided by (used in) investing activities	(77,570)	(71,735)	13,969
Cash Flows from Financing Activities
Net increase in demand deposit, NOW and savings accounts	204,757	43,282	48
Net decrease in time deposits	(38,409)	(8,853)	(45,261)
Net increase in short-term borrowings	(109,739)	58,585	18,729
Repayment of long-term borrowings	(18)	(45,016)	(918)
Proceeds from issuance of common stock, net of issuance costs	159	237	10
Payments for Repurchase of Common Stock	(10,405)	(1,689)	0
Exercise of stock options	7	122	303
Payments of Ordinary Dividends, Common Stock	(7,361)	(6,545)	(5,238)
Net cash provided by (used in) financing activities	38,991	40,123	(32,327)
Increase in cash and cash equivalents	2,348	6,909	6,015
Cash and cash equivalents:
Beginning	59,540	52,631	46,616
Ending	61,888	59,540	52,631
Cash payments for:
Interest Paid, Excluding Capitalized Interest, Operating Activities	29,855	25,426	18,201
Income taxes	7,850	7,539	5,996
Supplemental Schedule of Noncash Investing and Financing Activities
Other assets acquired in settlement of loans	4,600	1,822	430
Noncash or Part Noncash Acquisition, Value of Assets Acquired	100,377	0	350,894
Noncash or Part Noncash Acquisition, Value of Liabilities Assumed	$ 114,151	$ 0	$ 361,045

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Acquisitions

12 Months Ended

Dec. 31, 2019

Business Combinations [Abstract]

Acquisitions

ACQUISITIONS

Cornerstone Financial Services, Inc.

On January 1, 2020, Summit Community Bank, Inc., a wholly-owned subsidiary of Summit, acquired 100% of the ownership of Cornerstone Financial Services, Inc. ("Cornerstone") and its subsidiary Cornerstone Bank, Inc., headquartered in West Union, West Virginia, for consideration of 570,000 shares of Summit common stock and $14.25 million cash. With this transaction, Summit expanded its footprint into Doddridge, Harrison, Ritchie and Wood counties of West Virginia. Cornerstone's assets and liabilities approximated $195 million and $176 million, respectively at December 31, 2019 and 2019's total revenues, net of interest expense were $3.3 million and 2019 net income totaled $638,000. The acquisition will be accounted for using the acquisition method of accounting and is deemed immaterial to our financial statements.

The former Cornerstone offices will continue to operate under that name until close of business on Friday, March 20, 2020, and will commence operating under the name Summit Community Bank on Monday, March 23, 2020.

Peoples Bankshares, Inc.

On January 1, 2019, Summit Community Bank, Inc. acquired 100% of the ownership of Peoples Bankshares, Inc. ("PBI") and its subsidiary First Peoples Bank, Inc., headquartered in Mullens, West Virginia, for consideration of 465,931 shares of Summit common stock and $12.7 million cash. With this transaction, Summit expanded its footprint into Wyoming and Raleigh counties of West Virginia. PBI's assets and liabilities approximated $133 million and $113 million, respectively, at December 31, 2018 and 2018's total revenues, net of interest expense were $3.6 million and 2018 net income totaled $21,000. The acquisition was deemed immaterial to our financial statements.

We accounted for the acquisition using the acquisition method of accounting in accordance with ASC 805, Business Combinations and accordingly, the assets and liabilities of PBI were recorded at their respective acquisition date fair values. Determining the fair value of assets and liabilities, particularly related to the loan portfolio, is a complicated process involving significant judgment regarding methods and assumptions used to calculate the estimated fair values. The fair values are preliminary and subject to refinement for up to one year after the acquisition date as additional information relative to the acquisition date fair values becomes available. We recognized goodwill of $2.10 million in connection with the acquisition (not deductible for income tax purposes), which is not amortized for financial reporting purposes, but is subject to annual impairment testing. The core deposit intangible represents the value of long-term deposit relationships acquired in this transaction and will be amortized over an estimated weighted average life of 15 years using an accelerated method which approximates the estimated run-off of the acquired deposits. The following table details the total consideration paid on January 1, 2019 in connection with the acquisition of PBI, the fair values of the assets acquired and liabilities assumed and the resulting preliminary goodwill.

(Dollars in thousands)	As Recorded by PBI			Estimated Fair Value Adjustments			Estimated Fair Values as Recorded by Summit
Cash consideration							$	12,740
Stock consideration							8,997
Total consideration							21,737
Identifiable assets acquired:
Cash and cash equivalents	$	33,422		$	(93	)	$	33,329
Securities available for sale, at fair value	55,206			(93		)	55,113
Loans
Purchased performing	42,376			(977		)	41,399
Purchased credit impaired	—			—			—
Allowance for loan losses	(410		)	410			—
Premises and equipment	1,382			(567		)	815
Property held for sale	—			—			—
Core deposit intangibles	—			2,129			2,129
Other assets	1,110			(100		)	1,010
Total identifiable assets acquired	$	133,086		$	709		$	133,795
Identifiable liabilities assumed:
Deposits	112,064			315			112,379
Other liabilities	1,422			353			1,775
Total identifiable liabilities assumed	$	113,486		$	668		$	114,154
Net identifiable assets acquired	$	19,600		$	41		$	19,641
Goodwill resulting from acquisition							$	2,096

The following is a description of the methods used to determine the fair values of significant assets and liabilities presented above.

Cash and cash equivalents: The carrying amount of these assets approximates their fair value based on the short-term nature of these assets, with the exception of certificates of deposits held at other banks, which were adjusted to fair value based upon current interest rates.

Securities: Fair values for securities are based on quoted market prices, where available. If quoted market prices are not available, fair value estimates are based on observable inputs including quoted market prices for similar instruments, quoted market prices that are not in an active market or other inputs that are observable in the market.

Loans: Fair values for loans are based on a discounted cash flow methodology that considered factors including the type of loan and related collateral, collectibility, fixed or variable interest rate, term of loan, amortization status and current market rates. Loans were grouped together according to similar characteristics and were treated in the aggregate when applying various valuation techniques. The discount rates used for loans are based on current market rates for new originations of comparable loans and include adjustments for liquidity concerns, if any.

Premises and equipment: The fair value of PBI's real property was determined based upon appraisals by licensed appraisers. The fair value of tangible personal property, which is not material, was assumed to equal the carrying value by PBI.

Core deposit intangible: This intangible asset represents the value of the relationships with deposit customers. The fair value was estimated based on a discounted cash flow methodology that gave appropriate consideration to expected customer attrition rates, cost of the deposit base, reserve requirements and the net maintenance cost attributable to customer deposits.

Deposits: The fair values of the demand and savings deposits by definition equal the amount payable on demand at the acquisition date. The fair values for time deposits are estimated using a discounted cash flow calculation that applies interest rates currently being offered to the contractual interest rates on such time deposits.

Loans acquired in a business combination are recorded at estimated fair value on the date of acquisition without the carryover of the related allowance for loan losses. Purchased credit-impaired (PCI) loans are those for which there is evidence of credit deterioration since origination and for which it is probable at the date of acquisition that we will not collect all contractually required principal and interest payments. When determining fair value, PCI loans are identified as of the date of acquisition based upon evidence of credit quality such as internal risk grades and past due and nonaccrual status. The difference between contractually required payments of principal and interest at acquisition and the cash flows expected to be collected at acquisition is accounted for as a"nonaccretable difference," and is available to absorb future credit losses on those loans. For purposes of determining the nonaccretable difference, no prepayments are generally assumed in determining contractually required payments of principal and interest or cash flows expected to be collected. Subsequent decreases to the expected cash flows will generally result in a provision for loan losses. Subsequent significant increases in cash flows may result in a reversal of the provision for loan losses to the extent of prior charges, or a transfer from nonaccretable difference to accretable yield. Further, any excess of cash flows expected at acquisition over the estimated fair value is accounted for as accretable yield and is recognized as interest income over the remaining life of the loan when there is a reasonable expectation about the amount and timing of such cash flows. No acquired PBI loans were designated as PCI loans.

Loans not designated PCI loans as of the acquisition date are designated purchased performing loans. We account for purchased performing loans using the contractual cash flows method of recognizing discount accretion based on the acquired loans’ contractual cash flows. Purchased performing loans are recorded at fair value, including a credit discount. The fair value discount is accreted as an adjustment to yield over the estimated lives of the loans. There is no allowance for loan losses established at the acquisition date for purchased performing loans. A provision for loan losses is recorded for any deterioration in these loans subsequent to the acquisition.

The following presents the financial effects of adjustments recognized in the statements of income for the years ended December 31, 2019, 2018 and 2017 related to all business combinations.

	Income increase (decrease)
Dollars in thousands	2019			2018			2017
Interest and fees on loans	$	694		$	386		$	825
Interest expense on deposits	316			205			237
Amortization of intangibles	(1,634		)	(1,471		)	(1,210		)
Income before income tax expense	$	(624	)	$	(880	)	$	(148	)

Pending MVB Bank Branches Acquisition

On November 22, 2019, Summit announced the signing of a definitive agreement under which Summit Community Bank, Inc. will acquire three MVB Bank locations in Berkeley County, West Virginia and one MVB Bank location in Jefferson County, West Virginia. The transaction is expected to close early second quarter 2020. Summit will assume certain deposits and loans whose balances at December 31, 2019, were approximately $190 million and $40 million, respectively.

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Condensed Financial Statements Of Parent Company (Balance Sheets) (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Condensed Financial Statements, Captions [Line Items]
Other investments	$ 12,972	$ 16,635
Premises and equipment	44,168	37,553
Other assets	12,025	12,938
Total assets	2,403,492	2,200,586
Long-term borrowings	717	735
Subordinated debentures owed to unconsolidated subsidiary trusts	19,589	19,589
Other liabilities	22,840	16,522
Total liabilities	2,155,728	1,980,756
Preferred stock, $1.00 par value, authorized 250,000 shares	0	0
Common stock and related surplus, $2.50 par value; authorized 20,000,000 shares; issued: 2019 - 12,474,641 shares, 2018 - 12,399,887 shares; outstanding: 2019 - 12,408,542 shares, 2018 - 12,312,933 shares	80,084	80,431
Unearned ESOP Shares	(714)	(939)
Retained earnings	165,859	141,354
Accumulated other comprehensive income	2,535	(1,016)	$ 1,732
Total shareholders' equity	247,764	219,830	$ 201,505	$ 155,360
Total liabilities and shareholders' equity	2,403,492	2,200,586
Parent Company [Member]
Condensed Financial Statements, Captions [Line Items]
Cash	2,185	4,326
Investment in subsidiaries	267,132	236,422
Other investments	77	77
Premises and equipment	146	126
Other assets	1,317	1,365
Total assets	270,857	242,316
Subordinated debentures owed to unconsolidated subsidiary trusts	19,589	19,589
Other liabilities	3,504	2,897
Total liabilities	23,093	22,486
Preferred stock, $1.00 par value, authorized 250,000 shares	0	0
Common stock and related surplus, $2.50 par value; authorized 20,000,000 shares; issued: 2019 - 12,474,641 shares, 2018 - 12,399,887 shares; outstanding: 2019 - 12,408,542 shares, 2018 - 12,312,933 shares	80,084	80,431
Unearned ESOP Shares	(714)	(939)
Retained earnings	165,859	141,354
Accumulated other comprehensive income	2,535	(1,016)
Total shareholders' equity	247,764	219,830
Total liabilities and shareholders' equity	$ 270,857	$ 242,316

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Loans

12 Months Ended

Dec. 31, 2019

Loans and Leases Receivable Disclosure [Abstract]

Loans

LOANS

Loans are generally stated at the amount of unpaid principal, reduced by unearned discount and allowance for loan losses. Interest on loans is accrued daily on the outstanding balances.  Loan origination fees and certain direct loan origination costs are deferred and amortized as adjustments of the related loan yield over its contractual life. We categorize residential real estate loans in excess of $600,000 as jumbo loans.

Generally, loans are placed on nonaccrual status when principal or interest is greater than 90 days past due based upon the loan's contractual terms.  Interest is accrued daily on impaired loans unless the loan is placed on nonaccrual status.  Impaired loans are placed on nonaccrual status when the payments of principal and interest are in default for a period of 90 days, unless the loan is both well-secured and in the process of collection.  Interest on nonaccrual loans is recognized primarily using the cost-recovery method.  Loans may be returned to accrual status when repayment is reasonably assured and there has been demonstrated performance under the terms of the loan or, if applicable, the terms of the restructured loans.

Commercial-related loans or portions thereof are charged off to the allowance for loan losses when the loss has been confirmed.  This determination is made on a case by case basis considering many factors, including the prioritization of our claim in bankruptcy, expectations of the workout/restructuring of the loan and valuation of the borrower’s equity.  We deem a loss confirmed when a loan or a portion of a loan is classified “loss” in accordance with bank regulatory classification guidelines, which state, “Assets classified loss are considered uncollectible and of such little value that their continuance as bankable assets is not warranted”.

Consumer-related loans are generally charged to the allowance for loan losses upon reaching specified stages of delinquency, in accordance with the Federal Financial Institutions Examination Council policy.  For example, credit card loans are charged off by the end of the month in which the account becomes 180 days past due or within 60 days from receiving notification about a specified event (e.g., bankruptcy of the borrower), whichever is earlier.  Residential mortgage loans are generally charged off to net realizable value no later than when the account becomes 180 days past due.  Other consumer loans, if collateralized, are generally charged off to net realizable value at 120 days past due.

Loans are summarized as follows:

Dollars in thousands	2019		2018
Commercial	$	207,138	$	194,315
Commercial real estate
Owner-occupied	276,218		266,362
Non-owner occupied	629,206		564,826
Construction and development
Land and land development	84,112		68,833
Construction	37,523		24,731
Residential real estate
Non-jumbo	354,963		336,977
Jumbo	70,947		73,599
Home equity	76,568		80,910
Mortgage warehouse lines	126,237		39,140
Consumer	36,470		32,460
Other	14,117		12,899
Total loans, net of unearned fees	1,913,499		1,695,052
Less allowance for loan losses	13,074		13,047
Loans, net	$	1,900,425	$	1,682,005

The outstanding balance and the recorded investment of acquired loans included in the consolidated balance sheet at December 31, 2019 and 2018 are as follows:

	Acquired Loans
	2019						2018
Dollars in thousands	Purchased Credit Impaired		Purchased Performing		Total		Purchased Credit Impaired		Purchased Performing		Total
Outstanding balance	$	3,488	$	131,745	$	135,233	$	4,275	$	138,167	$	142,442
Recorded investment
Commercial	$	—	$	3,333	$	3,333	$	—	$	3,934	$	3,934
Commercial real estate
Owner-occupied	—		17,416		17,416		—		16,133		16,133
Non-owner occupied	653		12,957		13,610		1,162		23,431		24,593
Construction and development
Land and land development	—		3,031		3,031		—		5,161		5,161
Construction	—		—		—		—		—		—
Residential real estate
Non-jumbo	1,247		83,856		85,103		1,374		77,894		79,268
Jumbo	944		3,055		3,999		975		2,577		3,552
Home equity	—		2,144		2,144		—		2,805		2,805
Consumer	—		4,159		4,159		—		4,630		4,630
Other	—		13		13		—		122		122
Total recorded investment	$	2,844	$	129,964	$	132,808	$	3,511	$	136,687	$	140,198

The following table presents a summary of the change in the accretable yield of the purchased credit impaired ("PCI") loan portfolio during 2019 and 2018:

Dollars in thousands	2019			2018
Accretable yield, January 1	$	632		$	745
Accretion	(63		)	(115		)
Reclassification of nonaccretable difference due to improvement in expected cash flows	—			—
Other changes, net	(46		)	2
Accretable yield, December 31	$	523		$	632

The following presents loan maturities at December 31, 2019:

	Within		After 1 but		After
Dollars in thousands	1 Year		within 5 Years		5 Years
Commercial	$	101,625	$	63,132	$	42,381
Commercial real estate	88,846		119,993		696,585
Construction and development	43,713		28,611		49,311
Residential real estate	25,830		39,072		437,576
Mortgage warehouse lines	126,237		—		—
Consumer	5,247		25,849		5,374
Other	1,026		6,232		6,859
	$	392,524	$	282,889	$	1,238,086
Loans due after one year with:
Variable rates			$	564,490
Fixed rates			956,485
			$	1,520,975

The following table presents the contractual aging of the recorded investment in past due loans by class as of December 31, 2019 and 2018.

	At December 31, 2019
	Past Due										> 90 days and Accruing
Dollars in thousands	30-59 days		60-89 days		> 90 days		Total		Current
Commercial	$	216	$	—	$	383	$	599	$	206,539	$	—
Commercial real estate
Owner-occupied	119		137		4,035		4,291		271,927		—
Non-owner occupied	879		179		1,363		2,421		626,785		—
Construction and development
Land and land development	208		28		188		424		83,688		—
Construction	—		—		138		138		37,385		—
Residential mortgage
Non-jumbo	4,172		826		1,877		6,875		348,088		—
Jumbo	—		—		—		—		70,947		—
Home equity	760		—		223		983		75,585		—
Mortgage warehouse lines	—		—		—		—		126,237		—
Consumer	208		86		112		406		36,064		42
Other	—		—		100		100		14,017		—
Total	$	6,562	$	1,256	$	8,419	$	16,237	$	1,897,262	$	42

	At December 31, 2018
	Past Due										> 90 days and Accruing
Dollars in thousands	30-59 days		60-89 days		> 90 days		Total		Current
Commercial	$	254	$	51	$	483	$	788	$	193,527	$	—
Commercial real estate
Owner-occupied	—		—		612		612		265,750		—
Non-owner occupied	156		255		1,756		2,167		562,659		—
Construction and development
Land and land development	190		4		3,174		3,368		65,465		—
Construction	—		—		—		—		24,731		—
Residential mortgage
Non-jumbo	4,120		2,235		3,753		10,108		326,869		—
Jumbo	—		—		675		675		72,924		—
Home equity	754		261		181		1,196		79,714		—
Mortgage warehouse lines	—		—		—		—		39,140		—
Consumer	502		121		125		748		31,712		36
Other	31		—		—		31		12,868		—
Total	$	6,007	$	2,927	$	10,759	$	19,693	$	1,675,359	$	36

Nonaccrual loans:  The following table presents the nonaccrual loans included in the net balance of loans at December 31, 2019 and 2018.

Dollars in thousands	2019		2018
Commercial	$	764	$	935
Commercial real estate
Owner-occupied	4,198		1,028
Non-owner occupied	1,602		2,210
Construction and development
Land & land development	188		3,198
Construction	138		—
Residential mortgage
Non-jumbo	4,120		6,532
Jumbo	—		675
Home equity	284		299
Mortgage warehouse lines	—		—
Consumer	74		112
Other	100		—
Total	$	11,468	$	14,989

Impaired loans:  Impaired loans include the following:

▪ Loans which we risk-rate (consisting of loan relationships having aggregate balances in excess of $2.5 million, or loans exceeding $500,000 and exhibiting credit weakness) through our normal loan review procedures and which, based on current information and events, it is probable that we will be unable to collect all amounts due in accordance with the original contractual terms of the loan agreement.   Risk-rated loans with insignificant delays or insignificant short falls in the amount of payments expected to be collected are not considered to be impaired.

▪ Loans that have been modified in a troubled debt restructuring.

Both commercial and consumer loans are deemed impaired upon being contractually modified in a troubled debt restructuring. Troubled debt restructurings typically result from our loss mitigation activities and occur when we grant a concession to a borrower who is experiencing financial difficulty in order to minimize our economic loss and to avoid foreclosure or repossession of collateral.  Once restructured, a loan is generally considered impaired until its maturity, regardless of whether the borrower performs under the modified terms.  Although such a loan may be returned to accrual status if the criteria set forth in our accounting policy are met, the loan would continue to be evaluated for an asset-specific allowance for loan losses and we would continue to report the loan in the impaired loan table below.

The following tables present loans individually evaluated for impairment at December 31, 2019 and 2018.

	December 31, 2019
Dollars in thousands	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Impaired Balance		Interest Income Recognized while impaired
Without a related allowance
Commercial	$	403	$	403	$	—	$	467	$	21
Commercial real estate
Owner-occupied	7,223		7,224		—		7,534		224
Non-owner occupied	8,514		8,515		—		9,389		495
Construction and development
Land & land development	945		945		—		1,143		65
Construction	—		—		—		—		—
Residential real estate
Non-jumbo	3,387		3,393		—		3,787		217
Jumbo	3,980		3,979		—		4,017		210
Home equity	523		523		—		523		27
Mortgage warehouse lines	—		—		—		—		—
Consumer	13		13		—		14		2
Total without a related allowance	$	24,988	$	24,995	$	—	$	26,874	$	1,261
With a related allowance
Commercial	$	4,882	$	4,882	$	51	$	4,786	$	274
Commercial real estate
Owner-occupied	3,862		3,866		409		3,893		113
Non-owner occupied	540		544		113		535		5
Construction and development
Land & land development	1,015		1,015		589		1,030		51
Construction	—		—		—		—		—
Residential real estate
Non-jumbo	1,876		1,874		173		2,112		59
Jumbo	—		—		—		—		—
Home equity	—		—		—		—		—
Mortgage warehouse lines	—		—		—		—		—
Consumer	—		—		—		—		—
Total with a related allowance	$	12,175	$	12,181	$	1,335	$	12,356	$	502
Total
Commercial	$	27,384	$	27,394	$	1,162	$	28,777	$	1,248
Residential real estate	9,766		9,769		173		10,439		513
Consumer	13		13		—		14		2
Total	$	37,163	$	37,176	$	1,335	$	39,230	$	1,763

The above table does not include PCI loans.

	December 31, 2018
Dollars in thousands	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Impaired Balance		Interest Income Recognized while impaired
Without a related allowance
Commercial	$	1,019	$	1,253	$	—	$	321	$	16
Commercial real estate
Owner-occupied	8,600		8,605		—		7,730		318
Non-owner occupied	9,666		9,673		—		9,753		493
Construction and development
Land & land development	4,767		4,767		—		4,947		102
Construction	—		—		—		—		—
Residential real estate
Non-jumbo	3,279		3,284		—		3,401		180
Jumbo	4,132		4,130		—		3,517		166
Home equity	523		523		—		523		30
Mortgage warehouse lines	—		—		—		—		—
Consumer	9		10		—		13		1
Total without a related allowance	$	31,995	$	32,245	$	—	$	30,205	$	1,306
With a related allowance
Commercial	$	3,343	$	3,342	$	682	$	705	$	39
Commercial real estate
Owner-occupied	2,969		2,969		462		2,397		117
Non-owner occupied	189		191		9		226		16
Construction and development
Land & land development	1,057		1,057		298		1,073		56
Construction	—		—		—		—		—
Residential real estate
Non-jumbo	2,982		2,981		585		2,539		98
Jumbo	821		822		106		827		48
Home equity	—		—		—		—		—
Mortgage warehouse lines	—		—		—		—		—
Consumer	—		—		—		—		—
Total with a related allowance	$	11,361	$	11,362	$	2,142	$	7,767	$	374
Total
Commercial	$	31,610	$	31,857	$	1,451	$	27,152	$	1,157
Residential real estate	11,737		11,740		691		10,807		522
Consumer	9		10		—		13		1
Total	$	43,356	$	43,607	$	2,142	$	37,972	$	1,680

The above table does not include PCI loans.

The average recorded investment of impaired loans during 2017 was $35.6 million and $2.2 million interest income was recognized on those loans while impaired.

A modification of a loan is considered a troubled debt restructuring (“TDR”) when a borrower is experiencing financial difficulty and the modification constitutes a concession that we would not otherwise consider. This may include a transfer of real estate or other assets from the borrower, a modification of loan terms, or a combination of both.  A loan continues to be classified as a TDR for the life of the loan.  Included in impaired loans are TDRs of $25.7 million, of which $22.9 million were current with respect to restructured contractual payments at December 31, 2019 and $27 million, of which $26.6 million were current with respect to restructured contractual payments at December 31, 2018.  There were no commitments to lend additional funds under these restructurings at either balance sheet date.

The following table presents by class the TDRs that were restructured during 2019 and 2018.  Generally, the modifications were extensions of term, modifying the payment terms from principal and interest to interest only for an extended period, or reduction in interest rate.  All TDRs are evaluated individually for allowance for loan loss purposes.

	2019					2018
Dollars in thousands	Number of Modifications	Pre-modification Recorded Investment		Post-modification Recorded Investment		Number of Modifications	Pre-modification Recorded Investment		Post-modification Recorded Investment
Commercial	—	$	—	$	—	2	$	157	$	157
Commercial real estate
Owner-occupied	1	325		325		—	—		—
Non-owner occupied	4	324		324		2	183		183
Residential real estate
Non-jumbo	7	410		410		8	899		899
Consumer	1	15		15		—	—		—
Total	13	$	1,074	$	1,074	12	$	1,239	$	1,239

The following table presents defaults during the stated period of TDRs that were restructured during the past twelve months.  For purposes of these tables, a default is considered as either the loan was past due 30 days or more at any time during the period, or the loan was fully or partially charged off during the period. 

	2019			2018
Dollars in thousands	Number of Defaults	Recorded Investment at Default Date		Number of Defaults	Recorded Investment at Default Date
Commercial	—	$	—	2	$	157
Commercial real estate
Non-owner occupied	2	178		—	—
Residential real estate
Non-jumbo	3	174		7	847
Total	5	$	352	9	$	1,004

The following table details the activity regarding TDRs by loan type during 2019 and the related allowance on TDRs.

2019
	Construction & Land Development								Commercial Real Estate						Residential Real Estate
Dollars in thousands	Land & Land Develop- ment			Construc- tion		Commer- cial			Owner Occupied			Non- Owner Occupied			Non- jumbo			Jumbo			Home Equity		Mortgage Warehouse Lines		Con- sumer			Other		Total
Troubled debt restructurings
Balance January 1, 2019	$	2,654		$	—	$	273		$	9,365		$	5,404		$	4,490		$	4,278		$	523	$	—	$	10		$	—	$	26,997
Additions	—			—		—			325			324			410			—			—		—		15			—		1,074
Charge-offs	—			—		—			—			—			—			—			—		—		—			—		—
Net (paydowns) advances	(694		)	—		(71		)	(204		)	(203		)	(287		)	(924		)	—		—		(12		)	—		(2,395		)
Transfer into foreclosed properties	—			—		—			—			—			—			—			—		—		—			—		—
Refinance out of TDR status	—			—		—			—			—			—			—			—		—		—			—		—
Balance, December 31, 2019	$	1,960		$	—	$	202		$	9,486		$	5,525		$	4,613		$	3,354		$	523	$	—	$	13		$	—	$	25,676
Allowance related to troubled debt restructurings	$	589		$	—	$	4		$	245		$	—		$	163		$	—		$	—	$	—	$	—		$	—	$	1,001

We categorize loans into risk categories based on relevant information about the ability of borrowers to service their debt such as current financial information, historical payment experience, credit documentation, public information and current economic trends, among other factors. We analyze loans individually by classifying the loans as to credit risk.  We internally grade all commercial loans at the time of loan origination. In addition, we perform an annual loan review on all non-homogenous commercial loan relationships with an aggregate exposure of $2.5 million, at which time these loans are re-graded. We use the following definitions for our risk grades:

Pass: Loans graded as Pass are loans to borrowers of acceptable credit quality and risk. They are higher quality loans that do not fit any of the other categories described below.

OLEM (Special Mention):  Commercial loans categorized as OLEM are potentially weak. The credit risk may be relatively minor yet represent a risk given certain specific circumstances. If the potential weaknesses are not monitored or mitigated, the asset may weaken or inadequately protect our position in the future.

Substandard:   Commercial loans categorized as Substandard are inadequately protected by the borrower’s ability to repay, equity and/or the collateral pledged to secure the loan. These loans have identified weaknesses that could hinder normal repayment or collection of the debt. These loans are characterized by the distinct possibility that we will sustain some loss if the identified weaknesses are not mitigated.

Doubtful:  Commercial loans categorized as Doubtful have all the weaknesses inherent in those loans classified as Substandard, with the added elements that the full collection of the loan is improbable and the possibility of loss is high.

Loss:  Loans classified as loss are considered to be non-collectible and of such little value that their continuance as a bankable asset is not warranted. This does not mean that the loan has absolutely no recovery value, but rather it is neither practical nor desirable to defer writing off the loan, even though partial recovery may be obtained in the future.

The following table presents the recorded investment in construction and development, commercial and commercial real estate loans which are generally evaluated based upon our internal risk ratings defined above.

Loan Risk Profile by Internal Risk Rating
	Construction and Development												Commercial Real Estate
	Land and Land Development				Construction				Commercial				Owner Occupied				Non-Owner Occupied				Mortgage Warehouse Lines
Dollars in thousands	2019		2018		2019		2018		2019		2018		2019		2018		2019		2018		2019		2018
Pass	$	82,317	$	63,743	$	37,385	$	24,589	$	200,313	$	182,651	$	269,357	$	259,360	$	622,857	$	556,609	$	126,237	$	39,140
OLEM (Special Mention)	454		472		138		142		1,052		6,748		2,184		1,864		1,876		1,554		—		—
Substandard	1,341		4,618		—		—		5,773		4,916		4,677		5,138		4,473		6,663		—		—
Doubtful	—		—		—		—		—		—		—		—		—		—		—		—
Loss	—		—		—		—		—		—		—		—		—		—		—		—
Total	$	84,112	$	68,833	$	37,523	$	24,731	$	207,138	$	194,315	$	276,218	$	266,362	$	629,206	$	564,826	$	126,237	$	39,140

The following table presents the recorded investment in consumer, residential real estate and home equity loans, which are generally evaluated based on the aging status of the loans, which was previously presented, and payment activity.

	Performing				Nonperforming
Dollars in thousands	2019		2018		2019		2018
Residential real estate
Non-jumbo	$	350,843	$	330,445	$	4,120	$	6,532
Jumbo	70,947		72,924		—		675
Home Equity	76,284		80,611		284		299
Consumer	36,354		32,312		116		148
Other	14,017		12,899		100		—
Total	$	548,445	$	529,191	$	4,620	$	7,654

Industry concentrations:  At December 31, 2019 and 2018, we had no concentrations of loans to any single industry in excess of 10% of total loans.

Loans to related parties:  We have had, and may be expected to have in the future, banking transactions in the ordinary course of business with our directors, principal officers, their immediate families and affiliated companies in which they are principal shareholders (commonly referred to as related parties).  These transactions have been, in our opinion, on the same terms, including interest rates and collateral, as those prevailing at the time for comparable transactions with others.

The following presents the activity with respect to related party loans aggregating $60,000 or more to any one related party (other changes represent additions to and changes in director and executive officer status):

Dollars in thousands	2019			2018
Balance, beginning	$	43,899		$	45,698
Additions	37,947			6,750
Amounts collected	(30,203		)	(6,992		)
Other changes, net	(351		)	(1,557		)
Balance, ending	$	51,292		$	43,899

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Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Statement of Comprehensive Income [Abstract]
Net income	$ 31,866	$ 28,072	$ 11,915
Other comprehensive income (loss):
Net unrealized gain (loss) on cashflow hedge of ($268), $1,645, and $2,556 net of deferred taxes of ($64), $395, and $946 for the years ended December 31, 2019, 2018, and 2017 respectfully	(204)	1,250	1,610
Net unrealized gain (loss) on available for sale debt securities of $5,244, ($4,920), and $4,378, net of deferred taxes of $1,258, ($1,181), and $1,620 and reclassification adjustment for net realized gains (losses) included in net income of $1,938, $622, and $521, net of tax of $465, $149, and ($5) for the years ended December 31, 2019, 2018, and 2017, respectfully	3,986	(3,739)	2,758
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss) Arising During Period, after Tax	(91)	(259)	328
Other Comprehensive Income (Loss), Pension Plan, Gain (Loss) Arising During Period, after Tax	(140)	0	0
Other Comprehensive Income (Loss), Net of Tax	3,551	(2,748)	4,696
Total comprehensive income	$ 35,417	$ 25,324	$ 16,611

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Document And Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2019	Feb. 28, 2020	Jun. 30, 2019
Document And Entity Information
Entity Registrant Name	SUMMIT FINANCIAL GROUP INC
Entity Central Index Key	0000811808
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Document Type	10-K
Document Period End Date	Dec. 31, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	FY
Amendment Flag	false
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		13,044,641
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Public Float			$ 290,620,000

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Acquisitions Acquisitions (Tables)

12 Months Ended

Dec. 31, 2019

Business Combinations [Abstract]

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block]

The following table details the total consideration paid on January 1, 2019 in connection with the acquisition of PBI, the fair values of the assets acquired and liabilities assumed and the resulting preliminary goodwill.

(Dollars in thousands)	As Recorded by PBI			Estimated Fair Value Adjustments			Estimated Fair Values as Recorded by Summit
Cash consideration							$	12,740
Stock consideration							8,997
Total consideration							21,737
Identifiable assets acquired:
Cash and cash equivalents	$	33,422		$	(93	)	$	33,329
Securities available for sale, at fair value	55,206			(93		)	55,113
Loans
Purchased performing	42,376			(977		)	41,399
Purchased credit impaired	—			—			—
Allowance for loan losses	(410		)	410			—
Premises and equipment	1,382			(567		)	815
Property held for sale	—			—			—
Core deposit intangibles	—			2,129			2,129
Other assets	1,110			(100		)	1,010
Total identifiable assets acquired	$	133,086		$	709		$	133,795
Identifiable liabilities assumed:
Deposits	112,064			315			112,379
Other liabilities	1,422			353			1,775
Total identifiable liabilities assumed	$	113,486		$	668		$	114,154
Net identifiable assets acquired	$	19,600		$	41		$	19,641
Goodwill resulting from acquisition							$	2,096

Financial Effects of Purchase Accounting Adjustments

The following presents the financial effects of adjustments recognized in the statements of income for the years ended December 31, 2019, 2018 and 2017 related to all business combinations.

	Income increase (decrease)
Dollars in thousands	2019			2018			2017
Interest and fees on loans	$	694		$	386		$	825
Interest expense on deposits	316			205			237
Amortization of intangibles	(1,634		)	(1,471		)	(1,210		)
Income before income tax expense	$	(624	)	$	(880	)	$	(148	)

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Income Taxes (Schedule of Components of Applicable Income Tax Expense (Benefit)) (Details) - USD ($) $ in Thousands		12 Months Ended
	Dec. 22, 2017	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Current
Federal		$ 6,676	$ 6,400	$ 5,092
State		938	973	496
Total Current		7,614	7,373	5,588
Deferred
Federal		88	(304)	4,027
State		15	(45)	49
Total Deferred	$ 3,500	103	(349)	4,076
Applicable income taxes		$ 7,717	$ 7,024	$ 9,664

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Borrowed Funds (Subordinated Debentures Owed to Unconsolidated Subsidiary Trusts) (Narrative) (Details)	1 Months Ended			12 Months Ended
	Dec. 31, 2005 USD ($)	Mar. 31, 2004 USD ($)	Oct. 31, 2002 USD ($)	Dec. 31, 2019 USD ($) trust	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)
Debt Instrument [Line Items]
Number of Statutory Business Trusts | trust				3
Subordinated debentures owed to unconsolidated subsidiary trusts				$ 19,589,000	$ 19,589,000
Ownership percentage				100.00%
Proceeds from issuance of common stock, net of issuance costs				$ 159,000	$ 237,000	$ 10,000
Trust preferred securities limited to tier one capital elements, Nnt of goodwill				25.00%
Sfg Capital Trust I [Member]
Debt Instrument [Line Items]
Proceeds from issuance or sale of equity			$ 3,500,000
Proceeds from issuance of common stock, net of issuance costs			109,000
Payments to acquire investments			$ 3,610,000
Basis spread on variable rate			3.45%
Sfg Capital Trust Ii [Member]
Debt Instrument [Line Items]
Proceeds from issuance or sale of equity		$ 7,500,000
Proceeds from issuance of common stock, net of issuance costs		232,000
Payments to acquire investments		$ 7,730,000
Basis spread on variable rate		2.80%
Sfg Capital Trust Iii [Member]
Debt Instrument [Line Items]
Proceeds from issuance or sale of equity	$ 8,000,000
Proceeds from issuance of common stock, net of issuance costs	248,000
Payments to acquire investments	$ 8,250,000
Basis spread on variable rate	1.45%

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Accumulated Other Comprehensive Income (Loss) (Notes)

12 Months Ended

Dec. 31, 2019

Accumulated Other Comprehensive Income (Loss) [Abstract]

Comprehensive Income (Loss) Note [Text Block]

NOTE 20. ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

The following are the changes in accumulated other comprehensive income (loss) by component, net of tax, for the years ended December 31, 2019 and 2018.

				December 31, 2019
Dollars in thousands	Gains and Losses on Pension Plan			Gains on Other Post-Retirement Benefits			Gains and Losses on Cash Flow Hedges			Unrealized Gains and Losses on Available-for-Sale Securities			Total
Beginning balance	$	—		$	139		$	(314	)	$	(841	)	$	(1,016	)
Other comprehensive income (loss) before reclassification, net of tax	(140		)	(91		)	(204		)	5,459			5,024
Amounts reclassified from accumulated other comprehensive income, net of tax	—			—			—			(1,473		)	(1,473		)
Net current period other comprehensive income (loss)	(140		)	(91		)	(204		)	3,986			3,551
Ending balance	$	(140	)	$	48		$	(518	)	$	3,145		$	2,535

	December 31, 2018
Dollars in thousands	Gains on Other Post-Retirement Benefits			Gains and Losses on Cash Flow Hedges			Unrealized Gains and Losses on Available-for-Sale Securities			Total
Beginning balance	$	398		$	(1,564	)	$	2,898		$	1,732
Other comprehensive income (loss) before reclassification, net of tax	(259		)	1,250			(3,266		)	(2,275		)
Amounts reclassified from accumulated other comprehensive income (loss), net of tax	—			—			(473		)	(473		)
Net current period other comprehensive income (loss)	(259		)	1,250			(3,739		)	(2,748		)
Ending balance	139			$	(314	)	$	(841	)	$	(1,016	)

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Employee Benefits (Narrative) (Details) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2019	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	May 31, 2014
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Contributions to the plans		$ 616,000	$ 622,000	$ 556,000
Shares owned by ESOP		527,705	554,158
Employee Stock Ownership Plan (ESOP), Number of Suspense Shares		66,099	86,954
Common stock, shares authorized		20,000,000	20,000,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures			0
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value		$ 442,000	$ 24,000	694,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value		$ 396,000	396,000	200,000
Stock Issued During Period, Shares, Restricted Stock Award, Gross		2,892
Allocated Share-based Compensation Expense		$ 590,000	391,000	385,000
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense		142,000	$ 94,000	$ 142,000
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options		$ 1,470,000
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition		1 year 9 months 26 days
Stock Issued During Period, Shares, Employee Stock Ownership Plan		20,855	19,780	39,805
Stock Issued During Period, Value, Employee Stock Ownership Plan		$ 530,000	$ 485,000	$ 946,000
7 Year Vesting Stock Appreciation Rights [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures	28,306
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value	$ 9.74
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period	7 years
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage	14.30%
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period	10 years
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate	2.51%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate	2.30%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate	40.84%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term	7 years
5 Year Vesting Stock Appreciation Rights [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures	109,819
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value	$ 8.41
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period	5 years
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage	20.00%
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period	10 years
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate	2.43%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate	2.30%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate	35.71%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term	5 years 6 months
2014 LTIP [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Common stock, shares authorized					500,000
Supplemental Employee Retirement Plan [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Accrued liabilities		6,700,000	6,100,000
Supplemental Employee Retirement Plan Expense		712,000	669,000	707,000
Summit Financial Group Inc. Employee Stock Ownership Plan [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Contributions to the ESOP		$ 721,000	$ 646,000	$ 525,000
Shares owned by ESOP		527,705	554,158
Employee Stock Ownership Plan (ESOP), Number of Suspense Shares		66,099

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Allowance For Loan Losses (Tables)

12 Months Ended

Dec. 31, 2019

Allowance for Loan and Lease Losses Write-offs, Net [Abstract]

Schedule of Credit Losses Related to Financing Receivables, Current and Noncurrent

An analysis of the allowance for loan losses for the years ended December 31, 2019, 2018 and 2017 is as follows:

Dollars in thousands	2019		2018		2017
Balance, beginning of year	$	13,047	$	12,565	$	11,674
Losses:
Commercial	281		248		23
Commercial real estate
Owner occupied	2		38		5
Non-owner occupied	170		619		65
Construction and development
Land and land development	2		259		3
Construction	—		—		33
Residential real estate
Non-jumbo	979		887		359
Jumbo	—		—		2
Home equity	24		26		158
Mortgage warehouse lines	—		—		—
Consumer	285		244		389
Other	360		282		251
Total	2,103		2,603		1,288
Recoveries:
Commercial	17		16		124
Commercial real estate
Owner occupied	21		23		89
Non-owner occupied	1		—		91
Construction and development
Land and land development	108		270		278
Construction	—		—		—
Real estate - mortgage
Non-jumbo	125		228		134
Jumbo	—		25		—
Home equity	19		10		30
Mortgage warehouse lines	—		—		—
Consumer	168		141		82
Other	121		122		101
Total	580		835		929
Net losses	1,523		1,768		359
Provision for loan losses	1,550		2,250		1,250
Balance, end of year	$	13,074	$	13,047	$	12,565

Allowance for Credit Losses on Financing Receivables

The following tables present the activity in the allowance for loan losses, balance in allowance for loan losses and recorded investment in loans by portfolio segment and based on impairment method as of December 31, 2019 and 2018.

	For the Year Ended December 31, 2019												At December 31, 2019								At December 31, 2019
	Allowance for loan losses												Allowance related to:								Loans
Dollars in thousands	Beginning  Balance		Charge- offs			Recoveries		Provision			Ending Balance		Loans individua- lly evaluated  for impairm- ent		Loans collective- ly evaluated for impairm- ent		Loans acquired  with deteriora- ted credit quality (PCI)		Total		Loans individua- lly evaluated for impairm- ent		Loans collectively evaluated for impairment		Loans acquired with deteriora- ted credit quality (PCI)		Total
Commercial	$	1,705	$	(281	)	$	17	$	(295	)	$	1,146	$	51	$	1,095	$	—	$	1,146	$	5,285	$	201,853	$	—	$	207,138
Commercial real estate
Owner occupied	2,214		(2		)	21		467			2,700		409		2,291		—		2,700		11,085		265,133		—		276,218
Non-owner occupied	5,742		(170		)	1		366			5,939		113		5,821		5		5,939		9,054		619,499		653		629,206
Construction and development
Land and land development	339		(2		)	108		155			600		589		11		—		600		1,960		82,152		—		84,112
Construction	64		—			—		178			242		—		242		—		242		—		37,523		—		37,523
Residential real estate
Non-jumbo	2,090		(979		)	125		576			1,812		173		1,624		15		1,812		5,263		348,453		1,247		354,963
Jumbo	379		—			—		(368		)	11		—		11		—		11		3,980		66,023		944		70,947
Home equity	167		(24		)	19		(24		)	138		—		138		—		138		523		76,045		—		76,568
Mortgage warehouse lines	—		—			—		—			—		—		—		—		—		—		126,237		—		126,237
Consumer	79		(285		)	168		173			135		—		135		—		135		13		36,457		—		36,470
Other	268		(360		)	121		322			351		—		351		—		351		—		14,117		—		14,117
Total	$	13,047	$	(2,103	)	$	580	$	1,550		$	13,074	$	1,335	$	11,719	$	20	$	13,074	$	37,163	$	1,873,492	$	2,844	$	1,913,499

	For the Year Ended December 31, 2018												At December 31, 2018								At December 31, 2018
	Allowance for loan losses												Allowance related to:								Loans
Dollars in thousands	Beginning  Balance		Charge- offs			Recoveries		Provision			Ending  Balance		Loans individua- lly evaluated  for impairm- ent		Loans collective- ly evaluated for impairm- ent		Loans acquired  with deteriora- ted credit quality (PCI)		Total		Loans individua- lly evaluated for impairm- ent		Loans collectively evaluated for impairment		Loans acquired with deteriora- ted credit quality (PCI)		Total
Commercial	$	1,303	$	(248	)	$	16	$	634		$	1,705	$	682	$	1,023	$	—	$	1,705	$	4,362	$	189,953	$	—	$	194,315
Commercial real    estate
Owner occupied	2,424		(38		)	23		(195		)	2,214		462		1,752		—		2,214		11,569		254,793		—		266,362
Non-owner   occupied	4,950		(619		)	—		1,411			5,742		9		5,729		4		5,742		9,855		553,809		1,162		564,826
Construction and development
Land and land development	641		(259		)	270		(313		)	339		298		41		—		339		5,824		63,009		—		68,833
Construction	153		—			—		(89		)	64		—		64		—		64		—		24,731		—		24,731
Residential real estate
Non-jumbo	1,911		(887		)	228		838			2,090		585		1,495		10		2,090		6,261		329,342		1,374		336,977
Jumbo	72		—			25		282			379		106		273		—		379		4,953		67,671		975		73,599
Home equity	638		(26		)	10		(455		)	167		—		167		—		167		523		80,387		—		80,910
Mortgage warehouse    lines	—		—			—		—			—		—		—		—		—		—		39,140		—		39,140
Consumer	210		(244		)	141		(28		)	79		—		79		—		79		9		32,451		—		32,460
Other	263		(282		)	122		165			268		—		268		—		268		—		12,899		—		12,899
Total	$	12,565	$	(2,603	)	$	835	$	2,250		$	13,047	$	2,142	$	10,891	$	14	$	13,047	$	43,356	$	1,648,185	$	3,511	$	1,695,052

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Earnings Per Share

12 Months Ended

Dec. 31, 2019

Earnings Per Share [Abstract]

Earnings Per Share

EARNINGS PER SHARE

The computations of basic and diluted earnings per share follow:

	For the Year Ended December 31,
	2019					2018					2017
			Common					Common					Common
Dollars in thousands,	Income		Shares	Per		Income		Shares	Per		Income		Shares	Per
except per share amounts	(Numerator)		(Denominator)	Share		(Numerator)		(Denominator)	Share		(Numerator)		(Denominator)	Share
Net income	$	31,866				$	28,072				$	11,915
Basic EPS	$	31,866	12,516,474	$	2.55	$	28,072	12,364,468	$	2.27	$	11,915	11,918,390	$	1.00
Effect of dilutive securities:
Stock options			4,935					7,071					11,338
SARs			53,737					53,034					19,517
RSUs			—					—					—
Diluted EPS	$	31,866	12,575,145	$	2.53	$	28,072	12,424,573	$	2.26	$	11,915	11,949,245	$	1.00

Stock option and SAR grants are disregarded in this computation if they are determined to be anti-dilutive.  At December 31, 2019, our anti-dilutive SARs totaled 222,740 and all outstanding stock options were dilutive. Our anti-dilutive stock options were 7,700 and anti-dilutive SARs totaled 87,615 at December 31, 2018. All outstanding stock options and SARs were dilutive at December 31, 2017.

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Earnings Per Share (Computations Of Basic And Diluted Earnings Per Share) (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Earnings Per Share [Line Items]
Net income	$ 31,866	$ 28,072	$ 11,915
Net income (loss) applicable to common shares	$ 31,866	$ 28,072	$ 11,915
Basic EPS, Common Shares (Denominator) (in shares)	12,516,474	12,364,468	11,918,390
Basic EPS (in dollars per share)	$ 2.55	$ 2.27	$ 1.00
Diluted EPS, Stock options, Common Shares (Denominator) (in shares)	4,935	7,071	11,338
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements	53,737	53,034	19,517
Diluted EPS, Income (Numerator)	$ 31,866	$ 28,072	$ 11,915
Diluted EPS, Common Shares (Denominator) (in shares)	12,575,145	12,424,573	11,949,245
Diluted EPS (in dollars per share)	$ 2.53	$ 2.26	$ 1.00
Restricted Stock Units (RSUs) [Member]
Earnings Per Share [Line Items]
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements	0	0	0

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Goodwill And Other Intangible Assets

12 Months Ended

Dec. 31, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets

GOODWILL AND OTHER INTANGIBLE ASSETS

Goodwill and certain other intangible assets with indefinite useful lives are not amortized into net income over an estimated life, but rather are tested at least annually for impairment.  Intangible assets determined to have definite useful lives are amortized over their estimated useful lives and also are subject to impairment testing.

In accordance with ASU No. 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment, during third quarter 2019, we performed the qualitative assessment of goodwill and determined that the fair value was more likely than not greater than its carrying value.  In performing the qualitative assessment, we considered certain events and circumstances such as macroeconomic conditions, industry and market considerations, overall financial performance and cost factors when evaluating whether it is more likely than not that the fair value is less than the carrying value.  No indicators of impairment were noted as of September 30, 2019.

The following table presents our goodwill activity by reporting unit for 2019.

	Goodwill Activity
Dollars in thousands	Community Banking		Insurance Services			Total
Balance, January 1, 2019	$	10,562	$	4,710		$	15,272
Reclassifications to goodwill	—		—			—
Acquired goodwill, net	2,096		—			2,096
Goodwill reduction in conjunction with sale of Summit Insurance Services, LLC	—		(4,710		)	(4,710		)
Balance, December 31, 2019	$	12,658	$	—		$	12,658

In addition, at December 31, 2019 and December 31, 2018, we had $10.36 million and $10.57 million in unamortized identified intangible assets comprised of $10.30 million core deposit intangible at December 31, 2019 and $9.80 million core deposit intangible and $700,000 customer intangible at December 31, 2018.

	Other Intangible Assets
	December 31, 2019						December 31, 2018
Dollars in thousands	Community Banking		Insurance Services		Total		Community Banking		Insurances Services		Total
Identified intangible assets
Gross carrying amount	$	14,727	$	—	$	14,727	$	12,598	$	3,000	$	15,598
Less: accumulated amortization	4,363		—		4,363		2,728		2,300		5,028
Net carrying amount	$	10,364	$	—	$	10,364	$	9,870	$	700	$	10,570

Amortization relative to our identified intangible assets is as follows:

	Core Deposit		Customer
Dollars in thousands	Intangible		Intangible
Actual:
2017	$	1,210	$	200
2018	1,471		200
2019	1,634		67
Expected:
2020	1,513		—
2021	1,393		—
2022	1,273		—
2023	1,152		—
2024	1,032		—
Thereafter	3,930		—

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Employee Benefits Employee Stock Ownership Plan (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Employee Stock Ownership Plan [Abstract]
Employee Stock Ownership Plan (ESOP), Number of Allocated Shares	440,751	447,424
Employee Stock Ownership Plan (ESOP), Number of Committed-to-be-Released Shares	20,855	19,780
Employee Stock Ownership Plan (ESOP), Number of Suspense Shares	66,099	86,954
Employee Stock Ownership Plan (ESOP), Shares in ESOP	527,705	554,158
Employee Stock Ownership Plan (ESOP), Deferred Shares, Fair Value	$ 1,791	$ 1,679

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Commitments and Contingencies (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Loss Contingencies [Line Items]
Total unfunded commitments	$ 426,371	$ 323,270
Revolving home equity and credit card lines [Member]
Loss Contingencies [Line Items]
Total unfunded commitments	69,200	69,893
Construction loans [Member]
Loss Contingencies [Line Items]
Total unfunded commitments	119,456	85,392
Other loans [Member]
Loss Contingencies [Line Items]
Total unfunded commitments	225,637	161,619
Standby letters of credit [Member]
Loss Contingencies [Line Items]
Total unfunded commitments	$ 12,078	$ 6,366

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Income Taxes

12 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

Income Taxes

INCOME TAXES

Income taxes, computed on the separate return basis with the benefit of filing a consolidated return being recorded at the holding company, include Federal and state income taxes and are based on pretax net income reported in the consolidated financial statements, adjusted for transactions that may never enter into the computation of income taxes payable (permanent differences).  Deferred tax assets and liabilities are determined based on the differences between the financial statement and tax basis of assets and liabilities that will result in taxable or deductible amounts in the future based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income.  Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment.  Valuation allowances are established, when deemed necessary, to reduce deferred tax assets to the amount expected to be realized.

On December 22, 2017, the Tax Cuts and Jobs Act (“TCJA”) was signed into law. Among other things, the TCJA permanently lowered the federal corporate income tax rate to 21% from the prior maximum rate of 35%, effective January 1, 2018. As a result of the reduction of the federal corporate income tax rate, ASC 740 - Income Taxes, required us to remeasure our deferred tax assets and deferred tax liabilities, including those accounted for in accumulated other comprehensive income, as of the date of TCJA’s enactment and record the effects as income tax expense in the reporting period of enactment.

We remeasured our deferred tax assets and deferred tax liabilities as of December 22, 2017, at the new federal corporate income tax rate of 21%, and recorded additional deferred federal income tax expense of $3.5 million to reduce our net deferred tax assets.

A tax position that meets a "probable recognition threshold" for the benefit of the uncertain tax position is recognized in the financial statements. A tax position that fails to meet the probable recognition threshold will result in either reduction of a current or deferred tax asset or receivable, or recording a current or deferred tax liability.  We concluded that there were no significant uncertain tax positions requiring recognition in the consolidated financial statements.  The evaluation was performed for the years ended 2016 through 2019, the tax years which remain subject to examination by major tax jurisdictions.

The components of applicable income tax expense for the years ended December 31, 2019, 2018 and 2017, are as follows:

Dollars in thousands	2019		2018			2017
Current
Federal	$	6,676	$	6,400		$	5,092
State	938		973			496
	7,614		7,373			5,588
Deferred
Federal	88		(304		)	4,027
State	15		(45		)	49
	103		(349		)	4,076
Total	$	7,717	$	7,024		$	9,664

Reconciliation between the amount of reported income tax expense and the amount computed by multiplying the statutory income tax rates by book pretax income for the years ended December 31, 2019, 2018 and 2017 is as follows:

	2019					2018					2017
Dollars in thousands	Amount			Percent		Amount			Percent		Amount			Percent
Computed tax at applicable statutory rate	$	8,313		21		$	7,370		21		$	7,553		35
Increase (decrease) in taxes
resulting from:
Tax-exempt interest
and dividends, net	(728		)	(2	)	(1,011		)	(3	)	(1,569		)	(7	)
Non-deductible merger-related expenses	—			—		—			—		—			—
Low-income housing and rehabilitation tax credits	(177		)	—		(286		)	(1	)	(247		)	(1	)
Impact of enacted income tax rate change	—			—		—			—		3,461			16
State income taxes, net
of Federal income tax benefit	753			2		734			2		354			2
Other, net	(444		)	(1	)	217			1		112			—
Applicable income taxes	$	7,717		20		$	7,024		20		$	9,664		45

Deferred income taxes reflect the impact of "temporary differences" between amounts of assets and liabilities for financial reporting purposes and such amounts as measured for tax purposes.  Deferred tax assets and liabilities represent the future tax return consequences of temporary differences, which will either be taxable or deductible when the related assets and liabilities are recovered or settled.   

The tax effects of temporary differences, which give rise to our deferred tax assets and liabilities as of December 31, 2019 and 2018, are as follows:

Dollars in thousands	2019		2018
Deferred tax assets
Allowance for loan losses	$	3,017	$	2,921
Depreciation	29		405
Foreclosed properties	2,659		2,951
Deferred revenue	—		18
Deferred compensation	3,296		2,490
Other deferred costs and accrued expenses	534		645
Net unrealized loss on securities available for sale	—		265
Net unrealized loss on interest rate swaps	163		99
Capital loss carryforwards	—		166
Total	9,698		9,960
Deferred tax liabilities
Accretion on tax-exempt securities	62		29
Net unrealized gain on securities available for sale	994		—
Other post-retirement benefits	15		44
Purchase accounting adjustments and goodwill	2,099		2,253
Total	3,170		2,326
Net deferred tax assets	$	6,528	$	7,634

We may from time to time be assessed interest or penalties associated with tax liabilities by major tax jurisdictions, although any such assessments are estimated to be minimal and immaterial.  To the extent we have received an assessment for interest and/or penalties; it has been classified in the consolidated statements of income as a component of other noninterest expense.

We are currently open to audit under the statute of limitations by the Internal Revenue Service for the years ended December 31, 2016 through 2018.  Tax years 2017 through 2018 remain subject to West Virginia State examination.

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Derivative Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2019

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Interest Rate Derivatives

A summary of our derivative financial instruments as of December 31, 2019 and 2018 follows:

	December 31, 2019
			Derivative Fair Value				Net Ineffective
Dollars in thousands	Notional Amount		Asset		Liability		Hedge Gains/(Losses)
CASH FLOW HEDGES
Pay-fixed/receive-variable interest rate swaps
Short term borrowings	$	70,000	$	—	$	679	$	—
FAIR VALUE HEDGES
Pay-fixed/receive-variable interest rate swaps
Commercial real estate loans	$	18,809	$	—	$	309	$	—

	December 31, 2018
			Derivative Fair Value				Net Ineffective
Dollars in thousands	Notional Amount		Asset		Liability		Hedge Gains/(Losses)
CASH FLOW HEDGES
Pay-fixed/receive-variable interest rate swaps
Short term borrowings	$	110,000	$	—	$	411	$	—
FAIR VALUE HEDGES
Pay-fixed/receive-variable interest rate swaps
Commercial real estate loans	$	19,399	$	555	$	—	$	—

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Premises And Equipment (Tables)

12 Months Ended

Dec. 31, 2019

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment

The major categories of premises and equipment and accumulated depreciation at December 31, 2019 and 2018 are summarized as follows:

Dollars in thousands	2019		2018
Land	$	10,645	$	10,415
Buildings and improvements	34,885		32,283
Furniture and equipment	25,616		19,783
	71,146		62,481
Less accumulated depreciation	26,978		24,928
Total premises and equipment, net	$	44,168	$	37,553

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Regulatory Matters (Tables)

12 Months Ended

Dec. 31, 2019

Banking and Thrift [Abstract]

Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations

	Actual				Minimum Required Capital - Basel III Fully Phased-in			Minimum Required To Be Well Capitalized
Dollars in thousands	Amount		Ratio		Amount	Ratio		Amount	Ratio
As of December 31, 2019
CET1 (to risk weighted assets)
Summit	$	224,679	11.1	%	N/A	N/A		N/A	N/A
Summit Community	244,045		12.1	%	141,183	7.0	%	131,099	6.5	%
Tier I Capital (to risk weighted assets)
Summit	243,679		12.1	%	N/A	N/A		N/A	N/A
Summit Community	244,045		12.1	%	171,437	8.5	%	161,352	8.0	%
Total Capital (to risk weighted assets)
Summit	256,753		12.7	%	N/A	N/A		N/A	N/A
Summit Community	257,119		12.7	%	212,579	10.5	%	202,456	10.0	%
Tier I Capital (to average assets)
Summit	243,679		10.5	%	N/A	N/A		N/A	N/A
Summit Community	244,045		10.6	%	92,092	4.0	%	115,116	5.0	%
As of December 31, 2018
CET1 (to risk weighted assets)
Summit	197,551		11.1	%	N/A	N/A		N/A	N/A
Summit Community	213,930		12.0	%	124,793	7.0	%	115,879	6.5	%
Tier I Capital (to risk weighted assets)
Summit	216,551		12.2	%	N/A	N/A		N/A	N/A
Summit Community	213,930		12.0	%	151,534	8.5	%	142,620	8.0	%
Total Capital (to risk weighted assets)
Summit	229,598		12.9	%	N/A	N/A		N/A	N/A
Summit Community	226,977		12.8	%	186,192	10.5	%	177,326	10.0	%
Tier I Capital (to average assets)
Summit	216,551		10.1	%	N/A	N/A		N/A	N/A
Summit Community	213,930		10.0	%	85,572	4.0	%	106,965	5.0	%

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Deposits (Summary Of Interest Bearing Deposits By Type) (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Deposits [Abstract]
Demand deposits, interest bearing	$ 630,351	$ 523,257
Savings deposits	418,096	284,173
Time deposits	604,237	605,276
Total	$ 1,652,684	$ 1,412,706

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Securities (Summary Of Proceeds From Sales, Calls And Maturities, Principal Payments, Gains And Losses Of Securities) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Debt Securities, Available-for-sale [Abstract]
Proceeds from Sale of Debt Securities, Available-for-sale	$ 142,423	$ 107,559	$ 152,882
Securities available for sale, Proceeds from Calls and Maturities	1,871	1,145	2,700
Securities available for sale, Proceeds from Principal Payments	22,870	24,814	31,902
Debt Securities, Available-for-sale, Realized Gain	2,270	1,785	685
Debt Securities, Available-for-sale, Realized Loss	$ 332	$ 1,163	$ 699

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Other Investments Other Investment (Narrative) (Details)	12 Months Ended
	Dec. 31, 2019 USD ($)	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)
Investments, All Other Investments [Abstract]
Equity Securities without Readily Determinable Fair Value, Amount	$ 137,000	$ 137,000
Federal Home Loan Bank Stock	$ 8,900,000	13,100,000
Number of Limited Partnerships	2
Investment in a limited partnership	$ 3,900,000	3,350,000
Investment Tax Credit	669,000	1,544,000	$ 927,000
Amortization on Investment in Limited Partnership	552,000	1,270,000	680,000
Income Tax Benefit Recognized on Limited Partnerships	$ 117,000	$ 274,000	$ 247,000

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Borrowed Funds (Narrative) (Details) $ in Millions	Dec. 31, 2019 USD ($)
Debt Instrument [Line Items]
Federal Home Loan Bank Collateral Amount for Advances	$ 1,160.0
Federal Reserve Bank Amount of Loans Pledged For Line of Credit	283.0
Subsidiaries [Member]
Debt Instrument [Line Items]
Additional borrowings available from the FHLB	609.3
Line of Credit [Member]
Debt Instrument [Line Items]
Line of credit	6.0
Line of Credit [Member] | Federal Reserve Bank Advances [Member]
Debt Instrument [Line Items]
Line of credit	$ 149.3