-----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, JcKNEUVu2JQP9rjAIKHP2YsZwWS6nDsP7ByKDWQdfFuy76DbrWDsFrGMsWR/e4Dk PRq4hgKTZd4gNBNXM1ZKXg== 0001157523-04-000523.txt : 20040126 0001157523-04-000523.hdr.sgml : 20040126 20040126091414 ACCESSION NUMBER: 0001157523-04-000523 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20040122 ITEM INFORMATION: ITEM INFORMATION: Other events ITEM INFORMATION: Financial statements and exhibits ITEM INFORMATION: Regulation FD Disclosure FILED AS OF DATE: 20040126 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: 04542306 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 a4557448.txt SUMMIT FINANCIAL 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): January 22, 2004 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) 530-7233 (Registrant's telephone number, including area code) Not Applicable (Former name, address, and fiscal year, if changed since last report) Item 5. Other Event and Regulation FD Disclosure On January 23, 2004, Summit Financial Group, Inc. ("Summit ") issued a News Release announcing Corinthian Mortgage Corporation's petition for temporary injunction against Summit Financial, LLC and Shenandoah Valley National Bank, subsidiaries of Summit Financial Group, Inc., was denied. A copy of the News Release is attached as Exhibit 99.1 to this Report. Item 7. Financial Statements and Exhibits (c) Exhibits. 99.1 News Release, dated January 23, 2004 incorporated herein by reference. 99.2 News Release, dated January 23, 2004 incorporated herein by reference. Item 9. Regulation FD Disclosure On January 23, 2004, Summit Financial Group, Inc. ("Summit ") issued a News Release announcing its earnings for the fourth quarter and for the year 2003. A copy of the News Release is attached as Exhibit 99.2 to this Report. Item 12. Results of Operations and Financial Condition On January 23, 2004, Summit issued a News Release announcing its earnings for the fourth quarter and for the year ended 2003. A copy of the News Release is attached as Exhibit 99.2 to this Report. The information in this report and the accompanying exhibits are being furnished under Item 5, 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: January 23, 2004 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 January 23, 2004 incorporated herein by reference. 99.2 News Release, dated January 23, 2004 incorporated herein by reference EX-99 3 a4557448ex99.txt EXHIBIT 99.1 PRESS RELEASE Exhibit 99.1 Summit Defeats Petition for Temporary Injunction MOOREFIELD, W.Va.--(BUSINESS WIRE)--Jan. 23, 2004--Summit Financial, LLC and Shenandoah Valley National Bank, subsidiaries of Summit Financial Group, Inc. (OTCBB: SMMF), successfully defeated a Petition for Temporary Injunction brought against them by Corinthian Mortgage Corporation. Corinthian had sought a temporary injunction against Summit Financial, LLC, Shenandoah Valley National Bank and various employees of Summit Financial, LLC based on the alleged use of trade secrets. The Circuit Court of Fairfax County, Virginia denied Corinthian's petition. Summit Financial Group, Inc., after consultation with legal counsel, continues to believe that Corinthian's claims made in its recent lawsuit arising out of the hiring of former employees of Corinthian Mortgage Corporation and the alleged use of trade secrets are without foundation and that meritorious defenses exist as to all the claims. Summit Financial Group, Inc. will continue to evaluate the claims in the Corinthian lawsuit and intends to vigorously defend against them. Summit Financial Group, Inc. believes that the lawsuit is without merit and will have no material adverse effect on the company. Management of Summit Financial Group, Inc., at the present time, is unable to estimate the impact, if any, an adverse decision may have on Summit Financial Group's results of operations or financial condition. Summit Financial Group, Inc. is a financial holding company with total assets of $791 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. Summit also operates Summit Financial, LLC, a residential mortgage loan originator located in Herndon, Virginia and organized 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. CONTACT: Summit Financial Group, Inc. Robert S. Tissue, 304-530-0552 rtissue@SummitFGI.com EX-99 4 a4557448ex992.txt EXHIBIT 99.2 PRESS RELEASE Exhibit 99.2 Summit Financial Group Announces Both Record Quarterly and Annual Earnings; Q4 GAAP EPS Increases 20.7%; Year End GAAP EPS Up 13.2% MOOREFIELD, W.Va--(BUSINESS WIRE)--Jan. 23, 2004--Summit Financial Group, Inc. (OTCBB: SMMF) today reported fourth quarter 2003 GAAP net income of $2,493,000 or $0.70 per diluted share, up 20.7 percent on an earnings per share basis from the $2,044,000, or $0.58 per diluted share, reported in the fourth quarter of 2002. Net income for the fourth quarter generated an annualized return on average shareholders' equity of 17.66% and an annualized return on average assets of 1.30% compared to fourth quarter ratios of 15.74% and 1.22%, respectively, in the prior year. Operating earnings, which exclude the impact of nonrecurring income and expense items, for fourth quarter 2003 were $2,323,000 or $0.66 per diluted share, up 20.0 percent on an earnings per share basis compared to operating earnings of $1,930,000 or $0.55 per diluted share for fourth quarter 2002. Summit's fourth quarter 2003 results, excluding nonrecurring items, produced an annualized return on average shareholders' equity of 16.46% and an annualized return on average assets of 1.22%, compared to prior year ratios of 14.86% and 1.15%, 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 year ended December 31, 2003 was $8,208,000, or $2.32 per diluted share, up 13.2 percent on an earnings per share basis compared to $7,238,000 or $2.05 per diluted share for the same period of 2002. For the year ended December 31, 2003 operating earnings excluding one time income and expense items were $7,926,000 or $2.23 per diluted share, up 10.9 percent on an earnings per share basis, as compared to the $7,090,000 or $2.01 per diluted share for the same period of 2002. H. Charles Maddy, III, President and Chief Executive Officer commented, "We are extremely proud of Summit's consistent, strong financial performance, as 2003 marks the 16th consecutive year the Company has achieved record earnings. Additionally, we are equally pleased with the continued growth of each of our community banks, particularly in our Virginia markets, where our assets grew 24.1% during 2003. Further, Summit Financial, LLC, our recently organized mortgage loan origination operation achieved profitability in fourth quarter 2003, and we look forward to it contributing significantly to Summit's earnings in 2004." Summit Financial Group, Inc. is a financial holding company with total assets of $791 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. Summit also operates Summit Financial, LLC, a residential mortgage loan originator located in Herndon, Virginia and organized 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 --Q4 2003 vs Q4 2002 GAAP Basis For the Quarter Ended --------------------------- Dollars in thousands, except per Percent share amounts 12/31/2003 12/31/2002 Change - ---------------------------------------------------------------------- Condensed Statements of Income --GAAP Basis Interest income - taxable equivalent $10,917 $10,738 1.7% Interest expense 4,252 4,694 -9.4% --------------------------- Net interest income - taxable equivalent 6,665 6,044 10.3% Less: taxable equivalent adjustment 283 272 4.0% --------------------------- Net interest income 6,382 5,772 10.6% Provision for loan losses 232 308 -24.7% --------------------------- Net interest income after provision for loan losses 6,150 5,464 12.6% Noninterest income 3,644 407 795.3% Noninterest expense 6,307 3,227 95.4% --------------------------- Income before income taxes 3,487 2,644 31.9% Income taxes 994 600 65.7% --------------------------- Net income $2,493 $2,044 22.0% =========================== Per Share Data -- GAAP Basis Basic earnings $0.71 $0.58 22.4% Diluted earnings $0.70 $0.58 20.7% Average shares outstanding Basic 3,506,874 3,506,073 0.0% Diluted 3,541,296 3,525,115 0.5% Performance Ratios -- GAAP Basis Return on average equity 17.66% 15.74% 12.2% Return on average assets 1.30% 1.22% 6.6% Net yield on earning assets - taxable equivalent 3.69% 3.83% -3.7% Efficiency ratio (A) 63.68% 49.97% 27.4% NOTE: (A) - Excludes nonrecurring income and expense items and amortization of intangibles SUMMIT FINANCIAL GROUP, INC. (OTCBB: SMMF) Quarterly Performance Summary -- Q4 2003 vs Q4 2002 Excluding Nonrecurring Items For the Quarter Ended ---------------------------- Dollars in thousands, except per Percent share amounts 12/31/2003 12/31/2002 Change - ---------------------------------------------------------------------- Condensed Statements of Income Excluding Nonrecurring Items Interest income - taxable equivalent $10,917 $10,738 1.7% Interest expense 4,252 4,694 -9.4% ---------------------------- Net interest income - taxable equivalent 6,665 6,044 10.3% Less: taxable equivalent adjustment 283 272 4.0% ---------------------------- Net interest income 6,382 5,772 10.6% Provision for loan losses 232 308 -24.7% ---------------------------- Net interest income after provision for loan losses 6,150 5,464 12.6% Noninterest income 3,206 610 425.6% Noninterest expense 6,143 3,227 90.4% ---------------------------- Income before income taxes 3,213 2,847 12.9% Income taxes 890 917 -2.9% ---------------------------- Net income excluding nonrecurring items $2,323 $1,930 20.4% ============================ Per Share Data Excluding Nonrecurring Items Basic earnings $0.66 $0.55 20.0% Diluted earnings $0.66 $0.55 20.0% Average shares outstanding Basic 3,506,874 3,506,073 0.0% Diluted 3,541,296 3,525,115 0.5% Performance Ratios Excluding Nonrecurring Items Return on average equity 16.46% 14.86% 10.8% Return on average assets 1.22% 1.15% 6.1% Net yield on earning assets - taxable equivalent 3.69% 3.83% -3.7% Efficiency ratio (A) 63.68% 49.97% 27.4% NOTE: (A) - Excludes nonrecurring income and expense items and amortization of intangibles SUMMIT FINANCIAL GROUP, INC. (OTCBB: SMMF) Annual Performance Summary -- 2003 vs. 2002 GAAP Basis For the Year Ended ---------------------------- Dollars in thousands, except per Percent share amounts 12/31/2003 12/31/2002 Change - ---------------------------------------------------------------------- Condensed Statements of Income --GAAP Basis Interest income - taxable equivalent $42,344 $41,715 1.5% Interest expense 17,530 18,842 -7.0% ---------------------------- Net interest income - taxable equivalent 24,814 22,873 8.5% Less: taxable equivalent adjustment 1,120 1,026 9.2% ---------------------------- Net interest income 23,694 21,847 8.5% Provision for loan losses 915 1,215 -24.7% ---------------------------- Net interest income after provision for loan losses 22,779 20,632 10.4% Noninterest income 5,824 1,945 199.4% Noninterest expense 16,884 12,607 33.9% ---------------------------- Income before income taxes 11,719 9,970 17.5% Income taxes 3,511 2,732 28.5% ---------------------------- Net income $8,208 $7,238 13.4% ============================ Per Share Data Excluding Nonrecurring Items Basic earnings $2.34 $2.06 13.6% Diluted earnings $2.32 $2.05 13.2% Average shares outstanding Basic 3,505,003 3,507,964 -0.1% Diluted 3,536,643 3,526,081 0.3% Performance Ratios Excluding Nonrecurring Items Return on average equity 15.03% 15.15% -0.8% Return on average assets 1.14% 1.15% -0.9% Net yield on earning assets - taxable equivalent 3.63% 3.86% -6.0% Efficiency ratio (A) 57.33% 52.03% 10.2% NOTE: (A) - Excludes nonrecurring income and expense items and amortization of intangibles SUMMIT FINANCIAL GROUP, INC. (OTCBB: SMMF) Annual Performance Summary -- 2003 vs. 2002 Excluding Nonrecurring Items For the Year Ended -------------------------------- Dollars in thousands, except Percent per share amounts 12/31/2003 12/31/2002 Change - ---------------------------------------------------------------------- Condensed Statements of Income Excluding Nonrecurring Items Interest income - taxable equivalent $42,344 $41,715 1.5% Interest expense 17,530 18,842 -7.0% -------------------------------- Net interest income - taxable equivalent 24,814 22,873 8.5% Less: taxable equivalent adjustment 1,120 1,026 9.2% -------------------------------- Net interest income 23,694 21,847 8.5% Provision for loan losses 915 1,215 -24.7% -------------------------------- Net interest income after provision for loan losses 22,779 20,632 10.4% Noninterest income 5,205 2,094 148.6% Noninterest expense 16,720 12,607 32.6% -------------------------------- Income before income taxes 11,264 10,119 11.3% Income taxes 3,338 3,029 10.2% -------------------------------- Net income $7,926 $7,090 11.8% ================================ Per Share Data Excluding Nonrecurring Items Basic earnings $2.26 $2.02 11.9% Diluted earnings $2.24 $2.01 11.4% Average shares outstanding Basic 3,504,373 3,507,964 -0.1% Diluted 3,536,643 3,526,081 0.3% Performance Ratios Excluding Nonrecurring Items Return on average equity 14.51% 14.84% -2.2% Return on average assets 1.10% 1.13% -2.7% Net yield on earning assets - taxable equivalent 3.63% 3.86% -6.0% Efficiency ratio (A) 57.33% 52.03% 10.2% 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 Ended ------------------------------------------- Dollars in thousands, except per share amounts 12/31/2003 9/30/2003 6/30/2003 - ---------------------------------------------------------------------- Condensed Statements of Income -- GAAP Basis Interest income - taxable equivalent $10,917 $10,572 $10,445 Interest expense 4,252 4,350 4,467 ------------------------------------------- Net interest income - taxable equivalent 6,665 6,222 5,978 Less: taxable equivalent adjustment 283 280 277 ------------------------------------------- Net interest income 6,382 5,942 5,701 Provision for loan losses 232 232 233 ------------------------------------------- Net interest income after provision for loan losses 6,150 5,710 5,468 Noninterest income 3,644 810 797 Noninterest expense 6,307 3,797 3,439 ------------------------------------------- Income before income taxes 3,487 2,723 2,826 Income taxes 994 880 818 ------------------------------------------- Net income $2,493 $1,843 $2,008 =========================================== Per Share Data -- GAAP Basis Basic earnings $0.71 $0.53 $0.57 Diluted earnings $0.70 $0.52 $0.57 Average shares outstanding Basic 3,506,874 3,504,820 3,504,358 Diluted 3,541,296 3,554,700 3,534,643 Performance Ratios -- GAAP Basis Return on average equity 17.66% 13.36% 14.62% Return on average assets 1.30% 1.02% 1.12% Net yield on earning assets - taxable equivalent 3.69% 3.62% 3.54% Efficiency ratio (A) 63.68% 56.30% 53.03% 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 Ended ------------------------------------ Dollars in thousands, except per share amounts 3/31/2003 12/31/2002 - ---------------------------------------------------------------------- Condensed Statements of Income --GAAP Basis Interest income - taxable equivalent $10,408 $10,738 Interest expense 4,461 4,694 -------------------------- Net interest income - taxable equivalent 5,947 6,044 Less: taxable equivalent adjustment 278 272 -------------------------- Net interest income 5,669 5,772 Provision for loan losses 218 308 -------------------------- Net interest income after provision for loan losses 5,451 5,464 Noninterest income 573 407 Noninterest expense 3,340 3,227 -------------------------- Income before income taxes 2,684 2,644 Income taxes 820 600 -------------------------- Net income $1,864 $2,044 ========================== Per Share Data -- GAAP Basis Basic earnings $0.53 $0.58 Diluted earnings $0.53 $0.58 Average shares outstanding Basic 3,503,930 3,506,073 Diluted 3,529,886 3,525,115 Performance Ratios -- GAAP Basis Return on average equity 14.33% 15.74% Return on average assets 1.09% 1.22% Net yield on earning assets - taxable equivalent 3.66% 3.83% Efficiency ratio (A) 53.09% 49.97% 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 Ended ------------------------------------------- Dollars in thousands, except per share amounts 12/31/2003 9/30/2003 6/30/2003 - ---------------------------------------------------------------------- Condensed Statements of Income Excluding Nonrecurring Items Interest income - taxable equivalent $10,917 $10,572 $10,445 Interest expense 4,252 4,350 4,467 ------------------------------------------- Net interest income - taxable equivalent 6,665 6,222 5,978 Less: taxable equivalent adjustment 283 280 277 ------------------------------------------- Net interest income 6,382 5,942 5,701 Provision for loan losses 232 232 233 ------------------------------------------- Net interest income after provision for loan losses 6,150 5,710 5,468 Noninterest income 3,206 735 713 Noninterest expense 6,143 3,797 3,439 ------------------------------------------- Income before income taxes 3,213 2,648 2,742 Income taxes 890 851 786 ------------------------------------------- Net income $2,323 $1,797 $1,956 =========================================== Per Share Data Excluding Nonrecurring Items Basic earnings $0.66 $0.51 $0.56 Diluted earnings $0.66 $0.51 $0.55 Average shares outstanding Basic 3,506,874 3,504,820 3,504,358 Diluted 3,541,296 3,554,700 3,534,643 Performance Ratios Excluding Nonrecurring Items Return on average equity 16.46% 13.02% 14.24% Return on average assets 1.22% 0.99% 1.10% Net yield on earning assets - taxable equivalent 3.69% 3.62% 3.54% Efficiency ratio (A) 63.68% 56.30% 53.03% 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 Ended --------------------------------- Dollars in thousands, except per share amounts 3/31/2003 12/31/2002 ------------------------------------------------------------ Condensed Statements of Income Excluding Nonrecurring Items Interest income - taxable equivalent $10,408 $10,738 Interest expense 4,461 4,694 --------------------------------- Net interest income - taxable equivalent 5,947 6,044 Less: taxable equivalent adjustment 278 272 --------------------------------- Net interest income 5,669 5,772 Provision for loan losses 218 308 --------------------------------- Net interest income after provision for loan losses 5,451 5,464 Noninterest income 552 610 Noninterest expense 3,340 3,227 --------------------------------- Income before income taxes 2,663 2,847 Income taxes 812 917 --------------------------------- Net income $1,851 $1,930 ================================= Per Share Data Excluding Nonrecurring Items Basic earnings $0.53 $0.55 Diluted earnings $0.52 $0.55 Average shares outstanding Basic 3,503,930 3,506,073 Diluted 3,529,886 3,525,115 Performance Ratios Excluding Nonrecurring Items Return on average equity 14.23% 14.86% Return on average assets 1.08% 1.15% Net yield on earning assets - taxable equivalent 3.66% 3.83% Efficiency ratio (A) 53.09% 49.97% SUMMIT FINANCIAL GROUP, INC. (OTCBB: SMMF) Reconciliation of Operating Earnings to GAAP Net Income For the Quarter Ended ------------------------------------------------------ Dollars in thousands 12/31/2003 9/30/2003 6/30/2003 3/31/2003 12/31/2002 - ---------------------------------------------------------------------- Operating earnings $2,323 $1,797 $1,956 $1,851 $1,930 Securities gains (losses): Gross gains (losses) 105 - 66 41 (214) Applicable income tax effect (40) - (25) (16) 82 ------------------------------------------------------ 65 - 41 25 (132) Other gains (losses): Gross gains (losses) 169 75 18 (20) 10 Applicable income tax effect (64) (29) (7) 8 (4) ------------------------------------------------------ 105 46 11 (12) 6 Purchased state income tax credits - - - - 240 ------------------------------------------------------ GAAP net income $2,493 $1,843 $2,008 $1,864 $2,044 ====================================================== For the Year Ended ---------------------- Dollars in thousands 12/31/2003 12/31/2002 - ------------------------------------------------- Operating earnings $7,926 $7,090 Securities gains (losses): Gross gains (losses) 212 (140) Applicable income tax effect (81) 54 ---------------------- 131 (86) Other gains (losses): Gross gains (losses) 243 (9) Applicable income tax effect (92) 3 ---------------------- 151 (6) Purchased state income tax credits - 240 ---------------------- GAAP net income $8,208 $7,238 ====================== SUMMIT FINANCIAL GROUP, INC. (OTCBB: SMMF) Selected Balance Sheet Data As of Dollars in thousands, except per ----------------------- Percent share amounts 12/31/2003 12/31/2002 Change - ---------------------------------------------------------------------- Assets $791,465 $671,894 17.8% Securities 235,409 212,598 10.7% Loans, net 504,693 415,152 21.6% Intangible assets 3,050 3,201 -4.7% Deposits 511,801 458,648 11.6% Short-term borrowings 49,714 20,191 146.2% Long-term borrowings 168,255 137,396 22.5% Shareholders' equity 57,188 52,080 9.8% Book value per share $16.30 $14.87 9.6% SUMMIT FINANCIAL GROUP, INC. (OTCBB: SMMF) Asset Quality Information For the Quarter Ended ---------------------------------------------------- Dollars in thousands 12/31/2003 9/30/2003 6/30/2003 3/31/2003 12/31/2002 - --------------------------------------------------------------------- Net loan charge- off's $37 $46 $63 $142 $173 Net loan charge- off's to average loans (annualized) 0.03% 0.04% 0.06% 0.13% 0.18% Allowance for loan losses $4,681 $4,484 $4,298 $4,129 $4,053 Allowance for loan losses as a percentage of period end loans 0.94% 0.94% 0.94% 0.90% 0.95% Nonperforming assets: Nonperforming loans $1,658 $604 $1,056 $715 $1,491 Foreclosed properties 497 560 546 677 81 Nonaccrual securitites 396 399 405 412 421 ---------------------------------------------------- Total $2,551 $1,563 $2,007 $1,804 $1,993 ==================================================== Nonperforming loans and foreclosed properties to period end loans and foreclosed properties 0.43% 0.24% 0.35% 0.32% 0.38% ==================================================== Nonperforming assets to period end assets 0.32% 0.21% 0.28% 0.25% 0.30% ==================================================== SUMMIT FINANCIAL GROUP, INC. (OTCBB: SMMF) Average Balance Sheet, Interest Earnings & Expenses and Average Rates Q4 2003 vs Q4 2002 Q4 2003 -------------------------------------- Average Earnings / Yield / Dollars in thousands Balances Expense Rate - --------------------------------------------------------------- ASSETS Interest earning assets Loans, net of unearned interest Taxable $490,823 $8,016 6.53% Tax-exempt 5,943 122 8.21% Securities Taxable 179,265 2,002 4.47% Tax-exempt 43,323 738 6.81% Interest bearing deposits other banks and Federal funds sold 3,908 39 3.99% ---------------- ---------- -------- Total interest earning assets 723,262 10,917 6.04% Noninterest earning assets Cash & due from banks 9,928 Premises & equipment 17,360 Other assets 18,646 Allowance for loan losses (4,574) ---------------- Total assets $764,622 ================ LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities Interest bearing liabilities Interest bearing demand deposits $106,587 $203 0.76% Savings deposits 47,472 54 0.46% Time deposits 284,266 2,133 3.00% Short-term borrowings 48,222 156 1.29% Long-term borrowings 168,570 1,706 4.05% ---------------- ---------- -------- 655,117 4,252 2.60% Noninterest bearing liabilities Demand deposits 48,454 Other liabilities 4,592 ---------------- Total liabilities 708,163 Shareholders' equity 56,459 ---------------- Total liabilities and shareholders' equity $764,622 ================ NET INTEREST EARNINGS $6,665 ========== NET INTEREST YIELD ON EARNING ASSETS 3.69% ======== SUMMIT FINANCIAL GROUP, INC. (OTCBB: SMMF) Average Balance Sheet, Interest Earnings & Expenses and Average Rates Q4 2003 vs Q4 2002 Q4 2002 --------------------------------------------- Average Earnings/ Yield/ Dollars in thousands Balances Expense Rate - ---------------------------------------------------------------------- ASSETS Interest earning assets Loans, net of unearned interest Taxable $407,562 $7,551 7.41% Tax-exempt 6,569 138 8.40% Securities Taxable 171,980 2,333 5.43% Tax-exempt 38,297 681 7.11% Interest bearing deposits other banks and Federal funds sold 7,119 35 1.97% ------------------------------ -------- ----- Total interest earning assets 631,527 10,738 6.80% Noninterest earning assets Cash & due from banks 9,512 Premises & equipment 13,049 Other assets 20,197 Allowance for loan losses (4,029) ------------------------------ Total assets $670,256 ============================== LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities Interest bearing liabilities Interest bearing demand deposits $102,317 $295 1.15% Savings deposits 45,367 103 0.91% Time deposits 265,542 2,456 3.70% Short-term borrowings 19,088 80 1.68% Long-term borrowings 137,550 1,760 5.12% ------------------------------ -------- ----- 569,864 4,694 3.29% Noninterest bearing liabilities Demand deposits 42,838 Other liabilities 5,611 ------------------------------ Total liabilities 618,313 Shareholders' equity 51,943 ------------------------------ Total liabilities and shareholders' equity $670,256 ============================== NET INTEREST EARNINGS $6,044 ======== NET INTEREST YIELD ON EARNING ASSETS 3.83% ===== SUMMIT FINANCIAL GROUP, INC. (OTCBB:SMMF) Average Balance Sheet, Interest Earnings & Expenses and Average Rates YTD 2003 vs YTD 2002 For the Year Ended December 31, ---------------------------------------------------- 2003 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 $455,526 $30,842 6.77% $376,745 $28,626 7.60% Tax-exempt 5,933 489 8.24% 6,268 529 8.44% Securities Taxable 175,821 7,952 4.52% 169,728 9,840 5.80% Tax-exempt 41,537 2,889 6.96% 34,968 2,572 7.36% Interest bearing deposits other banks and Federal funds sold 5,368 170 3.17% 5,458 148 2.71% ------------ -------- ----- --------- -------- ----- Total interest earning assets 684,185 42,342 6.19% 593,167 41,715 7.03% Noninterest earning assets Cash & due from banks 8,970 8,981 Premises & equipment 14,168 13,079 Other assets 19,746 16,966 Allowance for loan losses (4,325) (3,649) ------------ --------- Total assets $722,744 $628,544 ============ ========= LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities Interest bearing liabilities Interest bearing demand deposits $100,084 $793 0.79% $93,001 $1,302 1.40% Savings deposits 46,985 256 0.54% 45,766 550 1.20% Time deposits 280,064 8,950 3.20% 247,587 9,712 3.92% Short-term borrowings 31,907 441 1.38% 15,973 326 2.04% Long-term borrowings 158,040 7,090 4.49% 134,384 6,952 5.17% ------------ -------- ----- --------- -------- ----- 617,080 17,530 2.84% 536,711 18,842 3.51% Noninterest bearing liabilities Demand deposits 46,166 39,364 Other liabilities 4,870 4,687 ------------ --------- Total liabilities 668,116 580,762 Shareholders' equity 54,628 47,782 ------------ --------- Total liabilities and shareholders' equity $722,744 $628,544 ============ ========= NET INTEREST EARNINGS $24,812 $22,873 ======== ======== NET INTEREST YIELD ON EARNING ASSETS 3.63% 3.86% ===== ===== CONTACT: Summit Financial Group Robert S. Tissue, 304-530-0552 rtissue@SummitFGI.com -----END PRIVACY-ENHANCED MESSAGE-----