-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, FxY0H1R/LlfGz9YmUJKQT7xcDsrBmRvuFnoE9QD1VXVMc/Wy1yOKpTrq6APinLHx 6g8x2lteAgW75te18G8NZw== 0001157523-03-005724.txt : 20031023 0001157523-03-005724.hdr.sgml : 20031023 20031022180801 ACCESSION NUMBER: 0001157523-03-005724 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20031022 ITEM INFORMATION: ITEM INFORMATION: Financial statements and exhibits ITEM INFORMATION: Regulation FD Disclosure FILED AS OF DATE: 20031023 FILER: COMPANY DATA: COMPANY CONFORMED NAME: SUMMIT FINANCIAL GROUP INC CENTRAL INDEX KEY: 0000811808 STANDARD INDUSTRIAL CLASSIFICATION: NATIONAL COMMERCIAL BANKS [6021] IRS NUMBER: 550672148 STATE OF INCORPORATION: WV FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-16587 FILM NUMBER: 03952771 BUSINESS ADDRESS: STREET 1: 223 NORTH MAIN ST CITY: MOOREFIELD STATE: WV ZIP: 26836 BUSINESS PHONE: 3045381000 MAIL ADDRESS: STREET 1: PO BOX 179 CITY: MOOREFIELD STATE: WV ZIP: 26836 FORMER COMPANY: FORMER CONFORMED NAME: SOUTH BRANCH VALLEY BANCORP INC DATE OF NAME CHANGE: 19920703 8-K 1 a4499540.txt SUMMIT FINANCIAL GROUP, INC. 8-K UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): October 22, 2003 Summit Financial Group, Inc. (Exact name of registrant as specified in its charter) West Virginia 0-16587 55-0672148 (State or Other (Commission (I.R.S. Employer Jurisdiction) File Number) Identification) 300 North Main Street Moorefield, WV 26836 (Address of principal executive offices) (Zip Code) (304) 538-7233 (Registrant's telephone number, including area code) Not Applicable (Former name, address, and fiscal year, if changed since last report) Item 7. Financial Statements and Exhibits (c) Exhibits. 99.1 News Release, dated October 22, 2003 incorporated herein by reference. Item 9. Regulation FD Disclosure On October 22, 2003, Summit Financial Group, Inc. ("Summit ") issued a News Release announcing its earnings for the third quarter and first nine months of 2003. A copy of the News Release is attached as Exhibit 99.1 to this Report. Item 12. Results of Operations and Financial Condition On October 22, 2003, Summit issued a News Release announcing its earnings for the third quarter and first nine months of 2003. A copy of the News Release is attached as Exhibit 99.1 to this Report. The information in this report and the accompanying exhibit is being furnished under Item 9 and Item 12 and shall not be deemed to be "filed" for the purposes of Section 18 of the Securities and Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of such section, nor shall such information be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing. SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. SUMMIT FINANCIAL GROUP, INC. Date: October 22, 2003 By: /s/ Robert S. Tissue -------------------------- Robert S. Tissue Senior Vice President and Chief Financial Officer EXHIBIT INDEX Exhibit No. Description - ----------- ----------- 99.1 News Release, dated October 22, 2003 incorporated herein by reference. EX-99 3 a4499540ex991.txt SUMMIT FINANCIAL GROUP, INC. PRESS RELEASE Exhibit 99.1 Summit Financial Group Announces Q3 2003 Earnings & New Mortgage Origination Unit; Q3 GAAP EPS Declines 3.7%; First Nine Months 2003 GAAP EPS Up 9.5% MOOREFIELD, W.Va.--(BUSINESS WIRE)--Oct. 22, 2003--Summit Financial Group, Inc. (OTCBB: SMMF) today reported third quarter 2003 GAAP net income of $1,843,000 or $0.52 per diluted share, down 3.7 percent on an earnings per share basis from the $1,923,000, or $0.54 per diluted share, reported in the third quarter of 2002. Net income for the third quarter generated an annualized return on average shareholders' equity of 13.36% and an annualized return on average assets of 1.02% compared to third quarter ratios of 15.62% and 1.20%, respectively, in the prior year. Operating earnings, which exclude the impact of nonrecurring income and expense items, for third quarter 2003 were $1,797,000 or $0.51 per diluted share, down 5.6 percent on an earnings per share basis compared to operating earnings of $1,917,000 or $0.54 per diluted share for third quarter 2002. Summit's third quarter 2003 results, excluding nonrecurring items, produced an annualized return on average shareholders' equity of 13.02% and an annualized return on average assets of 0.99%, compared to prior year ratios of 15.56% and 1.19%, respectively. Nonrecurring items consisted principally of gains and losses realized on securities transactions and other significant transactional gains and losses. GAAP net income for the nine months ended September 30, 2003 was $5,716,000, or $1.61 per diluted share, up 9.5 percent on an earnings per share basis compared to $5,194,000 or $1.47 per diluted share for the same period of 2002. For the nine months ended September 30, 2003 operating earnings excluding one time income and expense items were $5,605,000 or $1.58 per diluted share, up 8.2 percent on an earnings per share basis, as compared to the $5,148,000 or $1.46 per diluted share for the same period of 2002. In third quarter 2003, Summit organized and established Summit Financial, LLC ("SFLLC") as a wholly owned subsidiary of Shenandoah Valley National Bank. SFLLC, headquartered in Herndon, Virginia, will originate for resale: 1) primarily residential second mortgage debt consolidation loans to customers throughout the United States marketed utilizing direct mail; and 2) traditional residential first mortgage loans to borrowers in northern Virginia. SFLLC incurred a net loss of $135,000 (net of income tax benefit of $70,000) during third quarter 2003, which is included in Summit's consolidated earnings. Management anticipates that SFLLC will achieve break even results during fourth quarter 2003, and will contribute to the Company's earnings beginning in first quarter 2004. Summit Financial Group, Inc. is a financial holding company with total assets of $744 million. Summit operates thirteen banking locations through its three wholly owned subsidiary banks, Summit Community Bank headquartered in Moorefield, West Virginia, Capital State Bank, Inc. in Charleston, West Virginia, and Shenandoah Valley National Bank in Winchester, Virginia. As discussed above, Summit organized Summit Financial, LLC, a residential mortgage loan originator located in Herndon, Virginia during third quarter 2003. This press release contains forward-looking statements as defined by federal securities laws. These statements may address issues that involve significant risks, uncertainties, estimates and assumptions made by management. Actual results could differ materially from current projections. Please refer to Summit's filings with the Securities and Exchange Commission for a summary of important factors that could affect Summit's forward-looking statements. Summit undertakes no obligation to revise these statements following the date of this press release. SUMMIT FINANCIAL GROUP, INC. (OTCBB: SMMF) Quarterly Performance Summary -- Q3 2003 vs Q3 2002 GAAP Basis For the Quarter Dollars in thousands, except Ended Percent per share amounts 9/30/2003 9/30/2002 Change - --------------------------------------------------------------------- Condensed Statements of Income -- GAAP Basis Interest income - taxable equivalent $10,572 $10,586 -0.1% Interest expense 4,350 4,803 -9.4% ----------------------------- Net interest income - taxable equivalent 6,222 5,783 7.6% Less: taxable equivalent adjustment 280 241 16.2% ----------------------------- Net interest income 5,942 5,542 7.2% Provision for loan losses 232 307 -24.4% ----------------------------- Net interest income after provision for loan losses 5,710 5,235 9.1% Noninterest income 810 601 34.8% Noninterest expense 3,797 3,115 21.9% ----------------------------- Income before income taxes 2,723 2,721 0.1% Income taxes 880 798 10.3% ----------------------------- Net income $1,843 $1,923 -4.2% ============================= Per Share Data -- GAAP Basis Basic earnings $0.53 $0.55 -3.6% Diluted earnings $0.52 $0.54 -3.7% Average shares outstanding Basic 3,504,820 3,508,566 -0.1% Diluted 3,554,700 3,536,220 0.5% Performance Ratios -- GAAP Basis Return on average equity 13.36% 15.62% -14.5% Return on average assets 1.02% 1.20% -15.0% Net yield on earning assets - taxable equivalent 3.62% 3.80% -4.7% Efficiency ratio (A) 56.30% 50.15% 12.3% NOTE: (A) - Excludes nonrecurring income and expense items and amortization of intangibles. SUMMIT FINANCIAL GROUP, INC. (OTCBB: SMMF) Quarterly Performance Summary -- Q3 2003 vs Q3 2002 Excluding Nonrecurring Items For the Quarter Dollars in thousands, except Ended Percent per share amounts 9/30/2003 9/30/2002 Change - --------------------------------------------------------------------- Condensed Statements of Income Excluding Nonrecurring Items Interest income - taxable equivalent $10,572 $10,586 -0.1% Interest expense 4,350 4,803 -9.4% ------------------------ Net interest income - taxable equivalent 6,222 5,783 7.6% Less: taxable equivalent adjustment 280 241 16.2% ------------------------ Net interest income 5,942 5,542 7.2% Provision for loan losses 232 307 -24.4% ------------------------ Net interest income after provision for loan losses 5,710 5,235 9.1% Noninterest income 735 581 26.5% Noninterest expense 3,797 3,115 21.9% ------------------------ Income before income taxes 2,648 2,701 -2.0% Income taxes 851 792 7.4% ------------------------ Net income excluding nonrecurring items $1,797 $1,909 -5.9% ======================== Per Share Data Excluding Nonrecurring Items Basic earnings $0.51 $0.54 -5.6% Diluted earnings $0.51 $0.54 -5.6% Average shares outstanding Basic 3,504,820 3,508,566 -0.1% Diluted 3,554,700 3,536,220 0.5% Performance Ratios Excluding Nonrecurring Items Return on average equity 13.02% 15.56% -16.3% Return on average assets 0.99% 1.19% -16.8% Net yield on earning assets - taxable equivalent 3.62% 3.80% -4.7% Efficiency ratio (A) 56.30% 50.15% 12.3% NOTE: (A) - Excludes nonrecurring income and expense items and amortization of intangibles. SUMMIT FINANCIAL GROUP, INC. (OTCBB: SMMF) Nine Month Performance Summary -- 2003 vs. 2002 GAAP Basis For the Nine Months Dollars in thousands, except Ended Percent per share amounts 9/30/2003 9/30/2002 Change - --------------------------------------------------------------------- Condensed Statements of Income -- GAAP Basis Interest income - taxable equivalent $31,423 $30,975 1.4% Interest expense 13,278 14,148 -6.1% ------------------------ Net interest income - taxable equivalent 18,145 16,827 7.8% Less: taxable equivalent adjustment 833 752 10.8% ------------------------ Net interest income 17,312 16,075 7.7% Provision for loan losses 683 907 -24.7% ------------------------ Net interest income after provision for loan losses 16,629 15,168 9.6% Noninterest income 2,180 1,539 41.7% Noninterest expense 10,576 9,380 12.8% ------------------------ Income before income taxes 8,233 7,327 12.4% Income taxes 2,517 2,133 18.0% ------------------------ Net income $5,716 $5,194 10.1% ======================== Per Share Data -- GAAP Basis Basic earnings $1.63 $1.48 10.1% Diluted earnings $1.61 $1.47 9.5% Average shares outstanding Basic 3,504,373 3,508,602 -0.1% Diluted 3,549,988 3,535,458 0.4% Performance Ratios -- GAAP Basis Return on average equity 14.06% 14.94% -5.9% Return on average assets 1.08% 1.13% -4.4% Net yield on earning assets - taxable equivalent 3.61% 3.86% -6.5% Efficiency ratio (A) 54.18% 52.83% 2.6% NOTE: (A) - Excludes nonrecurring income and expense items and amortization of intangibles. SUMMIT FINANCIAL GROUP, INC. (OTCBB: SMMF) Nine Month Performance Summary -- 2003 vs. 2002 Excluding Nonrecurring Items For the Nine Months Dollars in thousands, except per Ended Percent share amounts 9/30/2003 9/30/2002 Change - -------------------------------------------------------------------- Condensed Statements of Income Excluding Nonrecurring Items Interest income - taxable equivalent $31,423 $30,979 1.4% Interest expense 13,278 14,148 -6.1% ----------------------- Net interest income - taxable equivalent 18,145 16,831 7.8% Less: taxable equivalent adjustment 833 756 10.2% ----------------------- Net interest income 17,312 16,075 7.7% Provision for loan losses 683 907 -24.7% ----------------------- Net interest income after provision for loan losses 16,629 15,168 9.6% Noninterest income 2,000 1,473 35.8% Noninterest expense 10,576 9,380 12.8% ----------------------- Income before income taxes 8,053 7,261 10.9% Income taxes 2,448 2,108 16.1% ----------------------- Net income $5,605 $5,153 8.8% ======================= Per Share Data Excluding Nonrecurring Items Basic earnings $1.60 $1.47 8.8% Diluted earnings $1.58 $1.46 8.2% Average shares outstanding Basic 3,504,373 3,508,602 -0.1% Diluted 3,549,988 3,535,458 0.4% Performance Ratios Excluding Nonrecurring Items Return on average equity 13.78% 14.81% -7.0% Return on average assets 1.05% 1.12% -6.2% Net yield on earning assets - taxable equivalent 3.61% 3.86% -6.5% Efficiency ratio (A) 54.18% 52.83% 2.6% NOTE: (A) - Excludes nonrecurring income and expense items and amortization of intangibles SUMMIT FINANCIAL GROUP, INC. (OTCBB: SMMF) Five Quarter Performance Summary GAAP Basis For the Quarter Dollars in thousands, except Ended per share amounts 9/30/2003 6/30/2003 3/31/2003 - -------------------------------------------------------------------- Condensed Statements of Income -- GAAP Basis Interest income - taxable equivalent $10,572 $10,445 $10,408 Interest expense 4,350 4,467 4,461 --------------------------------- Net interest income - taxable equivalent 6,222 5,978 5,947 Less: taxable equivalent adjustment 280 277 278 --------------------------------- Net interest income 5,942 5,701 5,669 Provision for loan losses 232 233 218 --------------------------------- Net interest income after provision for loan losses 5,710 5,468 5,451 Noninterest income 810 797 573 Noninterest expense 3,797 3,439 3,340 --------------------------------- Income before income taxes 2,723 2,826 2,684 Income taxes 880 818 820 --------------------------------- Net income $1,843 $2,008 $1,864 ================================= Per Share Data -- GAAP Basis Basic earnings $0.53 $0.57 $0.53 Diluted earnings $0.52 $0.57 $0.53 Average shares outstanding Basic 3,504,820 3,504,358 3,503,930 Diluted 3,554,700 3,534,643 3,529,886 Performance Ratios -- GAAP Basis Return on average equity 13.36% 14.62% 14.33% Return on average assets 1.02% 1.12% 1.09% Net yield on earning assets - taxable equivalent 3.62% 3.54% 3.66% Efficiency ratio (A) 56.30% 53.03% 53.09% NOTE: (A) - Excludes nonrecurring income and expense items and amortization of intangibles SUMMIT FINANCIAL GROUP, INC. (OTCBB: SMMF) Five Quarter Performance Summary GAAP Basis Dollars in thousands, except For the Quarter Ended per share amounts 12/31/2002 9/30/2002 - ------------------------------------------------------------ Condensed Statements of Income -- GAAP Basis Interest income - taxable equivalent $10,738 $10,586 Interest expense 4,694 4,803 ------------------------- Net interest income - taxable equivalent 6,044 5,783 Less: taxable equivalent adjustment 272 241 ------------------------- Net interest income 5,772 5,542 Provision for loan losses 308 307 ------------------------- Net interest income after provision for loan losses 5,464 5,235 Noninterest income 407 601 Noninterest expense 3,227 3,115 ------------------------- Income before income taxes 2,644 2,721 Income taxes 600 798 ------------------------- Net income $2,044 $1,923 ========================= Per Share Data -- GAAP Basis Basic earnings $0.58 $0.55 Diluted earnings $0.58 $0.54 Average shares outstanding Basic 3,506,073 3,508,566 Diluted 3,525,115 3,536,220 Performance Ratios -- GAAP Basis Return on average equity 15.74% 15.62% Return on average assets 1.22% 1.20% Net yield on earning assets - taxable equivalent 3.83% 3.80% Efficiency ratio (A) 49.97% 50.15% NOTE: (A) - Excludes nonrecurring income and expense items and amortization of intangibles SUMMIT FINANCIAL GROUP, INC. (OTCBB: SMMF) Five Quarter Performance Summary Excluding Nonrecurring Items For the Quarter Dollars in thousands, except Ended per share amounts 9/30/2003 6/30/2003 3/31/2003 - ------------------------------------------------------------------- Condensed Statements of Income Excluding Nonrecurring Items Interest income - taxable equivalent $10,572 $10,445 $10,408 Interest expense 4,350 4,467 4,461 --------------------------------- Net interest income - taxable equivalent 6,222 5,978 5,947 Less: taxable equivalent adjustment 280 277 278 --------------------------------- Net interest income 5,942 5,701 5,669 Provision for loan losses 232 233 218 --------------------------------- Net interest income after provision for loan losses 5,710 5,468 5,451 Noninterest income 735 713 552 Noninterest expense 3,797 3,439 3,340 --------------------------------- Income before income taxes 2,648 2,742 2,663 Income taxes 851 786 812 --------------------------------- Net income $1,797 $1,956 $1,851 ================================= Per Share Data Excluding Nonrecurring Items Basic earnings $0.51 $0.56 $0.53 Diluted earnings $0.51 $0.55 $0.52 Average shares outstanding Basic 3,504,820 3,504,358 3,503,930 Diluted 3,554,700 3,534,643 3,529,886 Performance Ratios Excluding Nonrecurring Items Return on average equity 13.02% 14.24% 14.23% Return on average assets 0.99% 1.10% 1.08% Net yield on earning assets - taxable equivalent 3.62% 3.54% 3.66% Efficiency ratio (A) 56.30% 53.03% 53.09% NOTE: (A) - Excludes nonrecurring income and expense items and amortization of intangibles SUMMIT FINANCIAL GROUP, INC. (OTCBB: SMMF) Five Quarter Performance Summary Excluding Nonrecurring Items Dollars in thousands, except For the Quarter Ended per share amounts 12/31/2002 9/30/2002 - -------------------------------------------------------- Condensed Statements of Income Excluding Nonrecurring Items Interest income - taxable equivalent $10,738 $10,586 Interest expense 4,694 4,803 ----------------------- Net interest income - taxable equivalent 6,044 5,783 Less: taxable equivalent adjustment 272 241 ----------------------- Net interest income 5,772 5,542 Provision for loan losses 308 307 ----------------------- Net interest income after provision for loan losses 5,464 5,235 Noninterest income 610 581 Noninterest expense 3,227 3,115 ----------------------- Income before income taxes 2,847 2,701 Income taxes 917 792 ----------------------- Net income $1,930 $1,909 ======================= Per Share Data Excluding Nonrecurring Items Basic earnings $0.55 $0.54 Diluted earnings $0.55 $0.54 Average shares outstanding Basic 3,506,073 3,508,566 Diluted 3,525,115 3,536,220 Performance Ratios Excluding Nonrecurring Items Return on average equity 14.86% 15.56% Return on average assets 1.15% 1.19% Net yield on earning assets - taxable equivalent 3.83% 3.80% Efficiency ratio (A) 49.97% 50.15% NOTE: (A) - Excludes nonrecurring income and expense items and amortization of intangibles SUMMIT FINANCIAL GROUP, INC. (OTCBB: SMMF) Reconciliation of Operating Earnings to GAAP Net Income For the Quarter Ended - ---------------------------------------------------------------------- Dollars in thousands 9/30/03 6/30/03 3/31/03 12/31/02 9/30/02 - ---------------------------------------------------------------------- Operating earnings $1,797 $1,956 $1,851 $1,930 $1,909 Securities gains (losses): Gross gains (losses) - 66 41 (214) 9 Applicable income tax effect - (25) (16) 82 (3) ------------------------------------------------ - 41 25 (132) 6 Other gains (losses): Gross gains (losses) 75 18 (20) 10 11 Applicable income tax effect (29) (7) 8 (4) (3) ------------------------------------------------ 46 11 (12) 6 8 Purchased state ncome tax credits - - - 240 - ------------------------------------------------ GAAP net income $1,843 $2,008 $1,864 $2,044 $1,923 ================================================ For the Nine Months Ended -------------------- Dollars in thousands 9/30/2003 9/30/2002 - -------------------------------------------------------- Operating earnings $5,605 $5,153 Securities gains losses): Gross gains (losses) 106 74 Applicable income tax effect (41) (28) -------------------- 65 46 Other gains (losses): Gross gains (losses) 74 (8) Applicable income tax effect (28) 3 -------------------- 46 (5) Purchased state income tax credits - - -------------------- GAAP net income $5,716 $5,194 ==================== SUMMIT FINANCIAL GROUP, INC. (OTCBB: SMMF) Selected Balance Sheet Data As of -------------------- Dollars in thousands, Percent except per share amounts 9/30/2003 9/30/2002 Change - ---------------------------------------------------------------------- Assets $744,173 $669,382 11.2% Securities 223,607 218,490 2.3% Loans, net 474,489 408,186 16.2% Intangible assets 3,088 3,239 -4.7% Deposits 474,955 463,915 2.4% Short-term borrowings 41,049 12,165 237.4% Long-term borrowings 165,526 137,597 20.3% Shareholders' equity 55,502 51,379 8.0% Book value per share $15.84 $14.65 8.1% SUMMIT FINANCIAL GROUP, INC. (OTCBB: SMMF) Asset Quality Information For the Quarter Ended ------------------------------------------------- Dollars in thousands 9/30/03 6/30/03 3/31/03 12/31/02 9/30/02 - ---------------------------------------------------------------------- Net loan charge-off's $46 $63 $142 $173 $29 Net loan charge- off's to average loans (annualized) 0.04% 0.06% 0.13% 0.18% 0.03% Allowance for loan losses $4,484 $4,298 $4,129 $4,053 $3,919 Allowance for loan losses as a percentage of period end loans 0.94% 0.94% 0.90% 0.95% 0.95% Nonperforming assets: Nonperforming loans $604 $1,056 $715 $1,491 $975 Foreclosed properties 560 546 677 81 81 Nonaccrual securitites 399 405 412 421 - ----------------------------------------- Total $1,563 $2,007 $1,804 $1,993 $1,056 ========================================= Nonperforming loans and foreclosed properties to period end loans and foreclosed properties 0.24% 0.35% 0.32% 0.38% 0.26% ========================================= Nonperforming assets to period end assets 0.21% 0.28% 0.25% 0.30% 0.16% ========================================= SUMMIT FINANCIAL GROUP, INC. (OTCBB: SMMF) Average Balance Sheet, Interest Earnings & Expenses and Average Rates Q3 2003 vs Q3 2002 Q3 2003 Q3 2002 --------------------------- --------------------------- Average Earnings/ Yield/ Average Earnings/ Yield/ Balances Expense Rate Balances Expense Rate - ------------------------------------------ --------------------------- Dollars in thousands ASSETS Interest earning assets Loans, net of unearned interest Taxable $463,496 $7,793 6.73% $385,536 $7,323 7.60% Tax-exempt 5,846 122 8.35% 6,451 137 8.49% Securities Taxable 171,064 1,887 4.41% 172,027 2,407 5.60% Tax-exempt 42,254 726 6.87% 36,241 674 7.44% Interest bearing deposits other banks and Federal funds sold 5,586 44 3.15% 9,163 45 1.96% ------ ------ ------ ------ ------ ------ Total interest earning assets 688,246 10,572 6.14% 609,418 10,586 6.95% Noninterest earning assets Cash & due from banks 8,761 9,102 Premises & equipment 14,084 13,237 Other assets 19,010 14,424 Allowance for loan losses (4,391) (3,773) ------- ------- Total assets $725,710 $642,408 ======== ======== LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities Interest bearing liabilities Interest bearing demand deposit $98,084 $163 0.66% $98,726 $391 1.58% Savings deposits 47,522 57 0.48% 46,622 154 1.32% Time deposits 281,071 2,240 3.19% 253,569 2,453 3.87% Short-term borrowings 32,000 114 1.43% 15,157 65 1.72% Long-term borrowings 160,349 1,776 4.43% 135,180 1,740 5.15% ------- ------ ------ ------- ------ ------ 619,026 4,350 2.81% 549,254 4,803 3.50% Noninterest bearing liabilities Demand deposits 46,994 39,330 Other liabilities 4,501 4,565 ------ ------ Total liabilities 670,521 593,149 Shareholders' equity 55,189 49,259 ------ ------ Total liabilities and shareholders' equity $725,710 $642,408 ======== ======== NET INTEREST EARNINGS $6,222 $5,783 ====== ====== NET INTEREST YIELD ON EARNING ASSETS 3.62% 3.80% ===== ===== SUMMIT FINANCIAL GROUP, INC. (OTCBB: SMMF) Average Balance Sheet, Interest Earnings & Expenses and Average Rates YTD 2003 vs YTD 2002 For the Nine Months Ended September 30, ----------------------------------------------------- 2003 2002 ------------------------- ------------------------- Average Earnings/ Yield/ Average Earnings/ Yield/ Balances Expense Rate Balances Expense Rate - ------------------------------------------ ------------------------- ASSETS Interest earning assets Loans, net of unearned interest Taxable $443,628 $22,827 6.86% $366,361 $21,075 7.67% Tax-exempt 5,931 367 8.25% 6,166 392 8.48% Securities Taxable 174,554 5,945 4.54% 168,983 7,507 5.92% Tax-exempt 40,934 2,151 7.01% 33,846 1,892 7.45% Interest bearing deposits other banks and Federal funds sold 5,860 133 3.03% 5,686 113 2.65% ------- ------ ------ ------- ------ ------ Total interest earning assets 670,907 31,423 6.24% 581,042 30,979 7.11% Noninterest earning assets Cash & due from banks 8,645 8,518 Premises & equipment 13,091 13,090 Other assets 20,321 15,836 Allowance for loan losses (4,240) (3,520) -------- -------- Total assets $708,724 $614,966 ======== ======== LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities Interest bearing liabilities Interest bearing demand deposits $97,891 $590 0.80% $89,861 $1,007 1.49% Savings deposits 46,821 202 0.58% 45,899 447 1.30% Time deposits 278,648 6,816 3.26% 241,536 7,256 4.01% Short-term borrowings 26,407 286 1.44% 15,428 246 2.13% Long-term borrowings 154,382 5,384 4.65% 133,316 5,192 5.19% ------- ------ ------ ------- ------ ------ 604,149 13,278 2.93% 526,040 14,148 3.59% Noninterest bearing liabilities Demand deposits 45,394 38,193 Other liabilities 4,965 4,373 ------- ------- Total liabilities 654,508 568,606 Shareholders' equity 54,216 46,360 ------- ------- Total liabilities and shareholders' equity $708,724 $614,966 ======== ======== NET INTEREST EARNINGS $18,145 $16,831 ======= ======= NET INTEREST YIELD ON EARNING ASSETS 3.61% 3.86% ===== ===== CONTACT: Summit Financial Group, Inc. Robert S. Tissue, 304-530-0552; rtissue@SummitFGI.com KEYWORD: WEST VIRGINIA VIRGINIA INDUSTRY KEYWORD: BANKING EARNINGS SOURCE: Summit Financial Group, Inc. -----END PRIVACY-ENHANCED MESSAGE-----