-----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, IbpDZ7KSmalxLlLzc7vRmWn6t2rjalOoSRbIQcScFzmL3MH8E5GgfRGt7RDMEgAp n6Gs/0jG49tcP6p5TLHWwg== 0001157523-04-003300.txt : 20040416 0001157523-04-003300.hdr.sgml : 20040416 20040416104346 ACCESSION NUMBER: 0001157523-04-003300 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20040415 ITEM INFORMATION: ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 20040416 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: 04737275 BUSINESS ADDRESS: STREET 1: 300 NORTH MAIN ST CITY: MOOREFIELD STATE: WV ZIP: 26836 BUSINESS PHONE: 3045381000 MAIL ADDRESS: STREET 1: 300 NORTH MAIN ST CITY: MOOREFIELD STATE: WV ZIP: 26836 FORMER COMPANY: FORMER CONFORMED NAME: SOUTH BRANCH VALLEY BANCORP INC DATE OF NAME CHANGE: 19920703 8-K 1 a4617262.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): April 15, 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 7. Financial Statements and Exhibits (c) Exhibits. 99.1 News Release, dated April 15, 2004 incorporated herein by reference. Item 12. Results of Operations and Financial Condition On April 15, 2004, Summit issued a News Release announcing its earnings for the first quarter of 2004. A copy of the News Release is attached as Exhibit 99.1 to this Report. 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: April 15, 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 April 15, 2004 incorporated herein by reference. EX-99.1 3 a4617262ex99.txt EXHIBIT 99.1 PRESS RELEASE Exhibit 99.1 Summit Financial Group Announces Q1 2004 Earnings; Diluted EPS Increases 30.2% to $0.69 MOOREFIELD, W.Va--(BUSINESS WIRE)--April 15, 2004--SUMMIT FINANCIAL GROUP, INC. (OTCBB:SMMF) today reported first quarter 2004 net income of $2,451,000 or $0.69 per diluted share, up 30.2 percent on an earnings per share basis from the $1,864,000, or $0.53 per diluted share, reported in the first quarter of 2003. Net income for the first quarter of 2004 generated an annualized return on average shareholders' equity of 16.77% and an annualized return on average assets of 1.23% compared to first quarter 2003 ratios of 14.33% and 1.09%, respectively. H. Charles Maddy, III, President and Chief Executive Officer commented, "We are very pleased to begin 2004 with exceptionally strong financial performance. Our three community banks increased earnings 23% in first quarter 2004 over the same period in 2003, while achieving 30% annualized loan growth and 15% annualized deposit growth since year end 2003. Summit Financial, LLC, our mortgage banking unit organized in the third quarter of 2003, contributed $244,000 to Summit's first quarter 2004 consolidated net income, and we anticipate its earnings contributions will become relatively more significant in the remainder of 2004." Summit Financial Group, Inc. is a financial holding company with total assets of $809 million. Summit operates thirteen banking locations through its three wholly owned community 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. 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 -- Q1 2004 vs Q1 2003 For the Quarter Percent Ended Change --------------------- Dollars in thousands, except per share amounts 3/31/2004 3/31/2003 - -------------------------------------------------- ---------- -------- Condensed Statements of Income Interest income Loans, including fees $8,314 $7,495 10.9% Securities 2,527 2,590 -2.4% Other 32 46 -30.4% ---------- ---------- Total interest income 10,873 10,131 7.3% ---------- ---------- Interest expense Deposits 2,414 2,625 -8.0% Borrowings 1,857 1,837 1.1% ---------- ---------- Total interest expense 4,271 4,462 -4.3% ---------- ---------- Net interest income 6,602 5,669 16.5% Provision for loan losses 233 218 6.9% ---------- ---------- Net interest income after provision for loan losses 6,369 5,451 16.8% ---------- ---------- Noninterest income Service fee income 509 339 50.1% Mortgage origination revenue 4,319 139 3007.2% Securities gains (losses) 20 41 -51.2% Other income 94 54 74.1% ---------- ---------- Total noninterest income 4,942 573 762.5% ---------- ---------- Noninterest expense Salaries and employee benefits 3,686 1,920 92.0% Net occupancy expense 304 194 56.7% Equipment expense 429 300 43.0% Postage expense 1,353 52 2501.9% Advertising 962 49 1863.3% Other expenses 1,105 825 33.9% ---------- ---------- Total noninterest expense 7,839 3,340 134.7% ---------- ---------- Income before income taxes 3,472 2,684 29.4% Income taxes 1,021 820 24.5% ---------- ---------- Net income $2,451 $1,864 31.5% ========== ========== Per Share Data Basic earnings $0.70 $0.53 32.1% Diluted earnings $0.69 $0.53 30.2% Average shares outstanding Basic 3,510,063 3,503,930 0.2% Diluted 3,553,392 3,529,886 0.7% Performance Ratios Return on average equity 16.77% 14.33% 17.0% Return on average assets 1.23% 1.09% 12.8% Net yield on earning assets - taxable equivalent 3.67% 3.66% 0.3% Efficiency ratio (A) 67.69% 53.09% 27.5% NOTE: (A) - Excludes nonrecurring income and expense items and amortization of intangibles. SUMMIT FINANCIAL GROUP, INC. (OTCBB:SMMF) Five Quarter Performance Summary For the Quarter Ended --------------------------------------------------- Dollars in thousands, except per share amounts 3/31/2004 12/31/2003 9/30/2003 6/30/2003 3/31/2003 - ------------------ --------------------------------------------------- Condensed State- ments of Income Interest income Loans, including fees $8,314 $8,096 $7,877 $7,697 $7,495 Securities 2,527 2,501 2,375 2,426 2,590 Other 32 37 42 46 46 --------------------------------------------------- Total interest income 10,873 10,634 10,294 10,169 10,131 --------------------------------------------------- Interest expense Deposits 2,414 2,390 2,467 2,516 2,625 Borrowings 1,857 1,862 1,885 1,952 1,837 --------------------------------------------------- Total interest expense 4,271 4,252 4,352 4,468 4,462 --------------------------------------------------- Net interest income 6,602 6,382 5,942 5,701 5,669 Provision for loan losses 233 232 232 233 218 --------------------------------------------------- Net interest income after provision for loan losses 6,369 6,150 5,710 5,468 5,451 --------------------------------------------------- Noninterest income Service fee income 509 455 403 388 339 Mortgage origination revenue 4,319 2,604 211 184 139 Securities gains (losses) 20 105 - 66 41 Other income 94 480 196 159 54 --------------------------------------------------- Total noninterest income 4,942 3,644 810 797 573 --------------------------------------------------- Noninterest expense Salaries and employee benefits 3,686 3,064 2,142 1,880 1,920 Nett occupancy expense 304 240 223 210 194 Equipment expense 429 383 326 311 300 Postage expense 1,353 781 103 49 52 Advertising 962 571 89 63 49 Other expenses 1,105 1,268 914 926 825 --------------------------------------------------- Total noninterest expense 7,839 6,307 3,797 3,439 3,340 --------------------------------------------------- Income before income taxes 3,472 3,487 2,723 2,826 2,684 Income taxes 1,021 994 880 818 820 --------------------------------------------------- Net income $2,451 $2,493 $1,843 $2,008 $1,864 =================================================== Per Share Data Basic earnings $0.70 $0.71 $0.53 $0.57 $0.53 Diluted earnings $0.69 $0.70 $0.52 $0.57 $0.53 Average shares outstanding Basic 3,510,063 3,506,874 3,504,820 3,504,358 3,503,930 Diluted 3,553,392 3,541,296 3,554,700 3,534,643 3,529,886 Performance Ratios Return on average equity 16.77% 17.66% 13.36% 14.62% 14.33% Return on average assets 1.23% 1.30% 1.02% 1.12% 1.09% Net yield on earning assets - taxable equivalent 3.67% 3.69% 3.62% 3.54% 3.66% Efficiency ratio (A) 67.69% 63.68% 56.30% 53.03% 53.09% NOTE: (A) - Excludes nonrecurring income and expense items and amortization of intangibles. SUMMIT FINANCIAL GROUP, INC. (OTCBB:SMMF) Segment Information For the Quarter Ended March 31, 2004 Community Mortgage Dollars in thousands Banking Banking Parent Eliminations Total - ------------------------------- -------------------------------------- Condensed State- ments of Income Interest income $10,755 $207 $3 $(92) $10,873 Interest expense 4,169 89 105 (92) 4,271 ---------- -------------------------------------- Net interest income 6,586 118 (102) - 6,602 Provision for loan losses 233 - - - 233 ---------- -------------------------------------- Net interest income after provision for loan losses 6,353 118 (102) - 6,369 ---------- -------------------------------------- Noninterest income 624 4,318 888 (888) 4,942 Noninterest expense 3,600 4,062 1,065 (888) 7,839 ---------- -------------------------------------- Income before income taxes 3,377 374 (279) - 3,472 Income taxes 999 130 (108) - 1,021 ---------- -------------------------------------- Net income $2,378 $244 $(171) $- $2,451 ========== ====================================== Average assets $790,721 $9,417 $68,282 $(71,397)$797,023 ========== ====================================== SUMMIT FINANCIAL GROUP, INC. (OTCBB:SMMF) Segment Information For the Quarter Ended March 31, 2003 Community Mortgage Dollars in Banking Banking Parent Eliminations Total thousands - ---------------------------- --------- -------- ------------ --------- Condensed State- ments of Income Interest income $10,134 $- $2 $(6) $10,130 Interest expense 4,413 - 54 (6) 4,461 ---------- --------- -------- ------------ --------- Net interest income 5,721 - (52) - 5,669 Provision for loan losses 218 - - - 218 ---------- --------- -------- ------------ --------- Net interest income after provision for loan losses 5,503 - (52) - 5,451 ---------- --------- -------- ------------ --------- Noninterest income 454 139 782 (802) 573 Noninterest expense 3,167 83 892 (802) 3,340 ---------- --------- -------- ------------ --------- Income before income taxes 2,790 56 (162) - 2,684 Income taxes 854 19 (53) - 820 ---------- --------- -------- ------------ --------- Net income $1,936 $37 $(109) $- $1,864 ========== ========= ======== ============ ========= Average assets $683,562 $2,278 $55,725 $(55,256) $686,309 ========== ========= ======== ============ ========= SUMMIT FINANCIAL GROUP, INC. (OTCBB:SMMF) Selected Balance Sheet Data For the Quarter Ended ------------------------------------------------------- Dollars in thousands, except per share amounts 3/31/2004 12/31/2003 9/30/2003 6/30/2004 3/31/2003 - -------------- ---------- ----------- ---------- ---------- ---------- Assets $809,216 $791,465 $744,173 $716,194 $710,892 Securities 215,732 235,409 223,607 217,538 231,560 Loans, net 542,451 504,693 474,489 456,242 436,020 Intangible assets 3,612 3,050 3,088 3,126 3,163 Deposits 530,372 511,801 474,955 473,255 468,842 Short-term borrowings 42,547 49,714 41,049 24,220 28,029 Long-term borrowings and subordinated debentures 169,608 168,255 169,135 159,369 156,322 Shareholders' equity 60,674 57,188 55,502 55,873 53,379 Book value per share $17.28 $16.30 $15.84 $15.94 $15.23 SUMMIT FINANCIAL GROUP, INC. (OTCBB:SMMF) Asset Quality Information For the Quarter Ended ------------------------------------------------------- Dollars in thousands 3/31/2004 12/31/2003 9/30/2003 6/30/2003 3/31/2003 - ------------------------- ----------- ---------- ---------- ---------- Net loan charge-off's $192 $37 $46 $63 $142 Net loan charge-off's to average loans (annualized) 0.15% 0.03% 0.04% 0.06% 0.13% Allowance for loan losses $4,721 $4,681 $4,484 $4,298 $4,129 Allowance for loan losses as a percentage of period end loans 0.88% 0.93% 0.94% 0.94% 0.94% Nonperforming assets: Nonperforming loans $1,448 $1,356 $604 $1,056 $715 Foreclosed properties 475 480 560 546 677 Nonaccrual securities 389 396 399 405 412 ---------- ----------- ---------- ---------- ---------- Total $2,312 $2,232 $1,563 $2,007 $1,804 ========== =========== ========== ========== ========== Nonperforming loans to period end loans and other real estate 0.36% 0.36% 0.24% 0.35% 0.32% ========== =========== ========== ========== ========== Nonperforming assets to period end assets 0.29% 0.28% 0.21% 0.28% 0.25% ========== =========== ========== ========== ========== SUMMIT FINANCIAL GROUP, INC. (OTCBB:SMMF) Average Balance Sheet, Interest Earnings & Expenses and Average Rates Q1 2004 vs Q1 2003 Q1 2004 --------- -------- ----- Average/ Earnings/ Yield/ Dollars in thousands Balances Expense Rate - ------------------------------------------------------- -------- ----- ASSETS Interest earning assets Loans, net of unearned interest Taxable $522,007 $8,217 6.30% Tax-exempt 7,630 147 7.71% Securities Taxable 172,397 1,975 4.58% Tax-exempt 48,288 825 6.83% Interest bearing deposits other banks and Federal funds sold 3,572 32 3.58% --------- -------- ----- Total interest earning assets 753,894 11,196 5.94% Noninterest earning assets Cash & due from banks 9,965 Premises & equipment 18,777 Other assets 19,161 Allowance for loan losses (4,774) --------- Total assets $797,023 ========= LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities Interest bearing liabilities Interest bearing demand deposits $115,233 $253 0.88% Savings deposits 48,053 56 0.47% Time deposits 301,375 2,105 2.79% Short-term borrowings 54,183 172 1.27% Long-term borrowings and subordinated debentures 165,465 1,685 4.07% --------- -------- ----- 684,309 4,271 2.50% Noninterest bearing liabilities Demand deposits 48,394 Other liabilities 5,847 --------- Total liabilities 738,550 Shareholders' equity 58,473 --------- Total liabilities and shareholders' equity $797,023 ========= NET INTEREST EARNINGS $6,925 ======== NET INTEREST YIELD ON EARNING ASSETS 3.67% ===== Q1 2003 --------- -------- ----- Average/ Earnings/ Yield/ Dollars in thousands Balances Expense Rate - ------------------------------------------------------- -------- ----- ASSETS Interest earning assets Loans, net of unearned interest Taxable $422,953 $7,412 7.01% Tax-exempt 6,208 127 8.18% Securities Taxable 174,478 2,114 4.85% Tax-exempt 39,209 710 7.24% Interest bearing deposits other banks and Federal funds sold 6,724 45 2.68% --------- -------- ----- Total interest earning assets 649,572 10,408 6.41% Noninterest earning assets Cash & due from banks 8,168 Premises & equipment 12,765 Other assets 19,895 Allowance for loan losses (4,091) --------- Total assets $686,309 ========= LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities Interest bearing liabilities Interest bearing demand deposits $99,283 $229 0.92% Savings deposits 46,098 73 0.63% Time deposits 273,566 2,323 3.40% Short-term borrowings 21,337 80 1.50% Long-term borrowings and subordinated debentures 144,639 1,757 4.86% --------- -------- ----- 584,923 4,462 3.05% Noninterest bearing liabilities Demand deposits 44,217 Other liabilities 5,152 --------- Total liabilities 634,292 Shareholders' equity 52,017 --------- Total liabilities and shareholders' equity $686,309 ========= NET INTEREST EARNINGS $5,946 ======== NET INTEREST YIELD ON EARNING ASSETS 3.66% ===== CONTACT: Summit Financial Group, Inc. Robert S. Tissue, 304-530-0552 rtissue@SummitFGI.com -----END PRIVACY-ENHANCED MESSAGE-----