Summit Financial Group Reports First Quarter 2018 Results

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| Source: Summit Financial Group, Inc.

Q1 2018 Diluted EPS $0.60 compared to $0.19 for Q4 2017 and ($0.15) for Q1 2017

MOOREFIELD, W.Va., April 26, 2018 (GLOBE NEWSWIRE) -- Summit Financial Group, Inc. (“Company” or “Summit”) (NASDAQ:SMMF) today reported first quarter 2018 net income of $7.44 million, or $0.60 per diluted share. In comparison, earnings for fourth quarter 2017 were $2.32 million, or $0.19 per diluted share, and for first quarter 2017, net loss of $1.62 million, or ($0.15) per diluted share. Earnings for first quarter 2018 were positively impacted by lower effective corporate income tax rate as result of enactment of the Tax Cuts and Jobs Act (“TCJA”) and by realized gains on sales of securities. Earnings per diluted share for fourth quarter 2017 were negatively impacted (on an after-tax basis) by the one-time charge of $0.28 to re-measure the Company’s net deferred tax assets as result of enactment of the TCJA. Summit’s first quarter 2017 net loss resulted principally from a legal settlement which reduced its earnings by $0.58 per diluted share.

Highlights for Q1 2018

  • Loans, excluding mortgage warehouse lines of credit and First Century Bankshares, Inc.’s (“FCB”) purchased loan portfolio, grew $42.7 million, or 12.3 percent (on an annualized basis);
  • Core deposits grew $27.1 million, or 11.0 percent (on an annualized basis);
  • Net interest margin declined 7 basis points compared to Q4 2017 primarily due to lower taxable equivalent yields on tax exempt interest earning assets resulting from reduction in the corporate income tax rate upon enactment of TCJA;
  • Efficiency ratio was 53.8 percent compared to 52.4 percent for Q4 2017, also negatively impacted by lower taxable equivalent earnings resulting from enactment of TCJA;
  • Provision for loan losses increased to $500,000 from $375,000 during the linked quarter;
  • Realized securities gains of $732,000 in Q1 2018 compared to realized securities losses of $71,000 in Q4 2017;
  • Write-downs of foreclosed properties were $257,000 in Q1 2018 compared to $347,000 in Q4 2017, while gains on sales of foreclosed properties increased from $46,000 in Q4 2017 to $64,000 in Q1 2018;
  • Nonperforming assets as a percentage of total assets were unchanged at 1.73 percent compared to the linked quarter and declined from 2.16 percent a year-ago; and
  • Quarterly dividend paid to shareholders increased 18.2 percent to $0.13 per share.

H. Charles Maddy, III, President and Chief Executive Officer of Summit, commented, “I am very pleased to report that Summit achieved both record quarterly net income and record quarterly earnings per share for the quarter just ended. Further, I am particularly gratified by our continued robust lending activity and strong core operating performance, and I optimistically look forward to the remainder of the year and beyond as we seek to be a consistent, high-performing community banking institution.”

Results of Operations

Total revenue for first quarter 2018, consisting of net interest income and noninterest income, grew 36.5 percent to $22.1 million, principally as result of the FCB acquisition, compared to $16.2 million for the first quarter 2017.

For the first quarter of 2018, net interest income was $17.3 million, an increase of 26.6 percent from the $13.6 million reported in the prior-year first quarter and decreased $181,000 compared to the linked-quarter. The net interest margin for first quarter 2018 was 3.58 percent compared to 3.54 percent for the year-ago quarter, and 3.65 percent for Q4 2017. Enactment of the TCJA reduced our net interest margin by 6 basis points in Q1 2018 as compared to Q4 2017. Excluding the impact of accretion and amortization of fair value acquisition accounting adjustments related to the interest earning assets and interest bearing liabilities acquired from FCB and HCB, Summit’s net interest margin was 3.53 percent for Q1 2018.

Noninterest income, consisting primarily of insurance commissions from Summit's insurance agency subsidiary, trust and wealth management fees and service fee income from community banking activities, for first quarter 2018 was $4.88 million compared to $3.93 million for the linked-quarter and $2.58 million for the comparable period of 2017. Excluding realized securities gains and losses, noninterest income was $4.14 million for first quarter 2018, compared to $2.64 million reported for first quarter 2017 and $4.00 million for the linked quarter.

We recorded a $500,000 provision for loan losses during first quarter 2018 compared to $375,000 during fourth quarter 2017 and $250,000 for the year-ago quarter. The need for increased loan loss provisioning during Q1 2018 is principally the result of recent loan growth.

Q1 2018 total noninterest expense decreased 35.2 percent to $12.3 million compared to $19.0 million for the prior-year first quarter principally due to the $9.9 million litigation settlement to resolve fully all litigation with Residential Funding Company, LLC and ResCap Liquidating Trust (collectively “ResCap”)  during Q1 2017.  Excluding the impact of the ResCap litigation settlement charge, noninterest expense for Q1 2018 increased 35.1 percent to $12.4 million compared to $9.1 million for Q1 2017, principally as result of the acquisitions of HCB and FCB.

Balance Sheet

At March 31, 2018, total assets were unchanged from year-end 2017 at $2.13 billion. Total loans, net of unearned fees, were $1.64 billion at March 31, 2018, up $37.1 million, or 9.2 percent (on an annualized basis), from the $1.61 billion reported at year-end 2017.  Loans, excluding mortgage warehouse lines of credit, grew $42.7 million during the quarter, or 12.3 percent (on an annualized basis).

At March 31, 2018, deposits were $1.65 billion, an increase of $53.9 million, or 3.4 percent, since year end 2017. During Q1 2018, checking deposits increased $38.4 million or 6.1 percent, time deposits grew by $26.8 million or 4.4 percent and savings deposits decreased $11.2 million or 3.1 percent.

Shareholders’ equity was $204.7 million as of March 31, 2018 compared to $201.5 million at December 31, 2017.

Tangible book value per common share increased to $14.36 at March 31, 2018 compared to $14.08 at December 31, 2017. Summit had 12,366,360 outstanding common shares at March 31, 2018 compared to 12,358,562 at year end 2017.

Asset Quality

As of March 31, 2018, nonperforming assets (“NPAs”), consisting of nonperforming loans, foreclosed properties, and repossessed assets, were unchanged from year end 2017 at $36.9 million, or 1.73 percent of assets.

First quarter 2018 net loan charge-offs were $807,000, or 0.20 percent of average loans annualized; while we added $500,000 to the allowance for loan losses through the provision for loan losses. The allowance for loan losses stood at 0.75 percent of total loans at March 31, 2018, compared to 0.78 percent at year-end 2017. If the acquired FCB and HCB loans which were recorded at fair value on the acquisition dates are excluded, the allowance for loan losses to total loans ratio at March 31, 2018 and December 31, 2017 would have been 0.85 percent and 0.91 percent, respectively.

About the Company

Summit Financial Group, Inc. is a $2.13 billion financial holding company headquartered in Moorefield, West Virginia. Summit provides community banking services primarily in the Eastern Panhandle and Southern regions of West Virginia and the Northern, Shenandoah Valley and Southwestern regions of Virginia, through its bank subsidiary, Summit Community Bank, Inc., which operates thirty banking locations. Summit also operates Summit Insurance Services, LLC in Moorefield, West Virginia and Leesburg, Virginia.

FORWARD-LOOKING STATEMENTS

This press release contains comments or information that constitute forward-looking statements (within the meaning of the Private Securities Litigation Act of 1995) that are based on current expectations that involve a number of risks and uncertainties. Words such as “expects”, “anticipates”, “believes”, “estimates” and other similar expressions or future or conditional verbs such as “will”, “should”, “would” and “could” are intended to identify such forward-looking statements.

Although we believe the expectations reflected in such forward-looking statements are reasonable, actual results may differ materially.  Factors that might cause such a difference include changes in interest rates and interest rate relationships; demand for products and services; the degree of competition by traditional and non-traditional competitors; changes in banking laws and regulations; changes in tax laws; the impact of technological advances; the outcomes of contingencies; trends in customer behavior as well as their ability to repay loans; and changes in the national and local economies.  We undertake no obligation to revise these statements following the date of this press release.

Contact:  Robert S. Tissue, Sr. Vice President & CFO
Telephone: (304) 530-0552
Email:  rtissue@summitfgi.com
   


   
SUMMIT FINANCIAL GROUP, INC. (NASDAQ:SMMF)  
Quarterly Performance Summary -- Q1 2018 vs Q1 2017  
     
    
   For the Quarter Ended  Percent 
 Dollars in thousands 3/31/20183/31/2017 Change 
 Condensed Statements of Income (unaudited)    
  Interest income    
   Loans, including fees $  20,366 $  15,671 30.0%
   Securities    2,391    1,851 29.2%
   Other    140    152 -7.9%
 Total interest income    22,897    17,674 29.6%
  Interest expense    
   Deposits    3,549    2,390 48.5%
   Borrowings    2,091    1,654 26.4%
 Total interest expense    5,640    4,044 39.5%
 Net interest income    17,257    13,630 26.6%
  Provision for loan losses    500    250 100.0%
  Net interest income after provision    
   for loan losses    16,757    13,380 25.2%
  Noninterest income    
   Insurance commissions    1,113    968 15.0%
   Trust and wealth management fees    667    100 567.0%
   Service fees related to deposit accounts    1,801    1,168 54.2%
   Realized securities gains (losses)    732    (58)-1362.1%
   Other income    563    401 40.4%
 Total noninterest income   4,876    2,579 89.1%
  Noninterest expense    
   Salaries and employee benefits   6,821    5,187 31.5%
   Net occupancy expense   832    567 46.7%
   Equipment expense   1,083    735 47.3%
   Professional fees   333    285 16.8%
   Amortization of intangibles   436    97 349.5%
   FDIC premiums   240    210 14.3%
   Merger-related  expense   -    109 -100.0%
   Foreclosed properties expense   132    104 26.9%
   (Gain) on sales of foreclosed properties   (64)   (156)-59.0%
   Write-downs of foreclosed properties   257    418 -38.5%
   Litigation settlement   -    9,900 n/a     
   Other expenses   2,244    1,560 43.8%
 Total noninterest expense   12,314    19,016 -35.2%
  Income (loss) before income taxes    9,319    (3,057)-404.8%
  Income tax expense (benefit)    1,876    (1,441)-230.2%
 Net income (loss) $  7,443 $  (1,616)-560.6%
          


   
   
SUMMIT FINANCIAL GROUP, INC. (NASDAQ:SMMF)  
Quarterly Performance Summary -- Q1 2018 vs Q1 2017  
    
   For the Quarter Ended  Percent 
  3/31/20183/31/2017 Change 
 Per Share Data    
  Earnings per common share    
   Basic $  0.60 $  (0.15)n/m       
   Diluted $  0.60 $  (0.15)n/m       
     
  Cash dividends $  0.13 $  0.11 18.2%
     
  Average common shares outstanding    
   Basic    12,358,849    10,738,365 15.1%
   Diluted    12,383,757    10,738,365 15.3%
     
  Common shares outstanding at period end    12,366,360    10,750,477 15.0%
     
 Performance Ratios    
  Return on average equity  14.73% -4.11%n/m       
  Return on average tangible equity  17.04% -4.51%n/m       
  Return on average assets  1.40% -0.37%n/m       
  Net interest margin  3.58% 3.54%1.1%
  Efficiency ratio (A)  53.84% 51.78%4.0%
     

NOTE (A) – Computed on a tax equivalent basis excluding gains/losses on sales of assets, litigation settlement, write-downs of OREO properties to fair value and amortization of intangibles.

     
SUMMIT FINANCIAL GROUP, INC. (NASDAQ:SMMF)    
Five Quarter Performance Summary     
      
   For the Quarter Ended 
 Dollars in thousands 3/31/201812/31/20179/30/20176/30/20173/31/2017
 Condensed Statements of Income (unaudited)      
  Interest income      
   Loans, including fees $  20,366 $  20,031 $  19,490 $  19,717$  15,671 
   Securities    2,391    2,412    2,397    2,349   1,851 
   Other    140    144    149    165   152 
 Total interest income    22,897    22,587    22,036    22,231   17,674 
  Interest expense      
   Deposits    3,549    3,224    2,963    2,634   2,390 
   Borrowings    2,091    1,925    1,841    1,749   1,654 
 Total interest expense    5,640    5,149    4,804    4,383   4,044 
 Net interest income    17,257    17,438    17,232    17,848   13,630 
  Provision for loan losses    500    375    375    250   250 
  Net interest income after provision      
   for loan losses    16,757    17,063    16,857    17,598   13,380 
  Noninterest income      
   Insurance commissions    1,113    1,005    1,043    988   968 
   Trust and wealth management fees    667    578    589    595   100 
   Service fees related to deposit accounts    1,801    1,906    1,863    1,706   1,168 
   Realized securities gains (losses)    732    (71)   26    90   (58)
   Other income    563    513    479    537   401 
 Total noninterest income   4,876    3,931    4,000    3,916   2,579 
  Noninterest expense      
   Salaries and employee benefits   6,821    6,520    6,610    6,758   5,187 
   Net occupancy expense   832    772    847    826   567 
   Equipment expense   1,083    1,095    1,093    1,031   735 
   Professional fees   333    355    373    354   285 
   Amortization of intangibles   436    435    448    429   97 
   FDIC premiums   240    250    310    295   210 
   Merger-related expense   -    14    11    1,455   109 
   Foreclosed properties expense   132    215    171    122   104 
   (Gain) loss on sales of foreclosed properties    (64)   (46)   (29)   73   (156)
   Write-downs of foreclosed properties    257    347    91    29   418 
   Litigation settlement    -    -    -    -   9,900 
   Other expenses   2,244    2,389    2,522    2,564   1,560 
 Total noninterest expense   12,314    12,346    12,447    13,936   19,016 
  Income (loss) before income taxes    9,319    8,648    8,410    7,578   (3,057)
  Income tax expense (benefit)    1,876    6,325    2,480    2,300   (1,441)
 Net income (loss) $  7,443 $  2,323 $  5,930 $  5,278$  (1,616)
                


      
      
SUMMIT FINANCIAL GROUP, INC. (NASDAQ:SMMF)     
Five Quarter Performance Summary     
      
   For the Quarter Ended 
  3/31/201812/31/20179/30/20176/30/20173/31/2017
 Per Share Data      
  Earnings per common share      
    Basic $  0.60 $  0.19 $  0.48 $  0.43 $  (0.15)
    Diluted $  0.60 $  0.19 $  0.48 $  0.43 $  (0.15)
       
  Cash dividends $  0.13 $  0.11 $  0.11 $  0.11 $  0.11 
       
  Average common shares outstanding      
    Basic    12,358,849    12,325,067    12,299,987    12,288,514    10,738,365 
    Diluted    12,383,757    12,371,507    12,318,959    12,299,187    10,738,365 
       
  Common shares outstanding at period end    12,366,360    12,358,562    12,311,723    12,299,726    10,750,477 
       
 Performance Ratios      
  Return on average equity  14.73% 4.62% 12.10% 11.10% -4.11%
  Return on average tangible equity  17.04% 5.36% 14.12% 12.95% -4.51%
  Return on average assets  1.40% 0.44% 1.14% 1.01% -0.37%
  Net interest margin  3.58% 3.65% 3.65% 3.81% 3.54%
  Efficiency ratio (A)  53.84% 52.44% 54.51% 53.55% 51.78%
       

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

     
SUMMIT FINANCIAL GROUP, INC. (NASDAQ:SMMF)    
Selected Balance Sheet Data (unaudited)     
       
 Dollars in thousands, except per share amounts 3/31/201812/31/20179/30/20176/30/20173/31/2017
       
 Assets      
 Cash and due from banks$  9,042 $  9,641 $  9,220 $  9,294 $  19,326 
 Interest bearing deposits other banks   38,365    42,990    41,994    44,242    38,895 
 Securities   296,890    328,723    328,726    336,811    282,028 
 Loans, net   1,631,150    1,593,744    1,559,328    1,538,083    1,292,915 
 Property held for sale   21,442    21,470    22,622    23,592    23,491 
 Premises and equipment, net   35,554    34,209    34,220    33,234    26,377 
 Goodwill and other intangible assets   27,077    27,513    27,879    28,214    13,587 
 Cash surrender value of life insurance policies   41,668    41,358    41,076    41,189    39,412 
 Other assets   33,707    34,592    36,071    40,641    40,411 
 Total assets$  2,134,895 $  2,134,240 $  2,101,136 $  2,095,300 $  1,776,442 
       
 Liabilities and Shareholders' Equity      
 Deposits$  1,654,523 $  1,600,601 $  1,616,768 $  1,613,919 $  1,301,241 
 Short-term borrowings   193,513    250,499    202,988    205,728    228,868 
 Long-term borrowings and     
   subordinated debentures   65,336    65,340    65,344    65,348    65,804 
 Other liabilities   16,514    16,295    17,254    17,173    26,910 
 Shareholders' equity   205,009    201,505    198,782    193,132    153,619 
 Total liabilities and shareholders' equity$  2,134,895 $  2,134,240 $  2,101,136 $  2,095,300 $  1,776,442 
       
 Book value per common share$  16.55 $  16.30 $  16.15 $  15.70 $  14.29 
 Tangible book value per common share$  14.36 $  14.08 $  13.88 $  13.41 $  13.03 
 Tangible common equity to tangible assets 8.4% 8.3% 8.2% 8.0% 7.9%
       


     
     
SUMMIT FINANCIAL GROUP INC. (NASDAQ:SMMF)    
Regulatory Capital Ratios     
       
  3/31/201812/31/20179/30/20176/30/20173/31/2017
Summit Financial Group, Inc.     
 CET1 Risk-based Capital10.7%10.6%10.8%10.5%10.3%
 Tier 1 Risk-based Capital11.8%11.8%11.9%11.7%11.5%
 Total Risk-based Capital12.5%12.5%12.7%12.4%12.3%
 Tier 1 Leverage Ratio9.5%9.4%9.5%9.2%9.4%
       
Summit Community Bank, Inc.     
 CET1 Risk-based Capital11.7%11.7%11.8%11.6%11.6%
 Tier 1 Risk-based Capital11.7%11.7%11.8%11.6%11.6%
 Total Risk-based Capital12.5%12.5%12.6%12.4%12.4%
 Tier 1 Leverage Ratio9.5%9.4%9.4%9.2%9.4%
       


     
     
SUMMIT FINANCIAL GROUP INC. (NASDAQ:SMMF)    
Loan Composition      
        
Dollars in thousands3/31/201812/31/20179/30/20176/30/20173/31/2017 
        
Commercial $  189,586$  189,981$  187,193$  176,362$  134,808 
Mortgage warehouse lines   45,702   30,757   33,525   35,068   30,217 
Commercial real estate      
  Owner occupied   265,075   250,202   239,840   239,108   217,733 
  Non-owner occupied   498,445   484,902   464,543   455,439   401,795 
Construction and development      
  Land and development   66,841   67,219   71,412   74,155   68,079 
  Construction    33,327   33,412   28,756   22,967   16,511 
Residential real estate      
  Non-jumbo    346,477   354,101   355,642   355,546   266,140 
  Jumbo    67,169   62,267   61,253   63,899   60,780 
  Home equity    83,382   84,028   82,720   81,192   75,299 
Consumer    34,825   36,202   36,915   37,630   24,440 
Other    12,578   13,238   9,994   9,049   8,831 
 Total loans, net of unearned fees   1,643,407   1,606,309   1,571,793   1,550,415   1,304,633 
Less allowance for loan losses   12,257   12,565   12,465   12,332   11,718 
Loans, net$  1,631,150$  1,593,744$  1,559,328$  1,538,083$  1,292,915 
        


     
     
SUMMIT FINANCIAL GROUP INC. (NASDAQ:SMMF)    
Deposit Composition      
        
Dollars in thousands 3/31/201812/31/20179/30/20176/30/20173/31/2017 
Non-interest bearing checking$  219,293$  217,493$  215,910$  234,173$  152,086 
Interest bearing checking   447,172   410,606   397,843   372,327   275,678 
Savings    346,962   358,168   362,653   373,439   342,548 
Time deposits    641,096   614,334   640,362   633,980   530,929 
Total deposits$  1,654,523$  1,600,601$  1,616,768$  1,613,919$  1,301,241 
        


     
     
SUMMIT FINANCIAL GROUP, INC. (NASDAQ:SMMF)    
Asset Quality Information     
       
   For the Quarter Ended 
 Dollars in thousands 3/31/201812/31/20179/30/20176/30/20173/31/2017
       
 Gross loan charge-offs$  960 $  550 $  309 $  114 $  315 
 Gross loan recoveries   (153)   (276)   (67)   (478)   (108)
   Net loan charge-offs (recoveries)$  807 $  274 $  242 $  (364)$  207 
       
 Net loan charge-offs to average loans (annualized) 0.20% 0.07% 0.06% -0.09% 0.06%
 Allowance for loan losses$  12,257 $  12,565 $  12,465 $  12,332 $  11,718 
 Allowance for loan losses as a percentage     
   of period end loans 0.75% 0.78% 0.79% 0.79% 0.90%
 Nonperforming assets:     
   Nonperforming loans     
     Commercial$  734 $  696 $  757 $  786 $  226 
     Commercial real estate   3,400    3,164    2,773    2,051    4,734 
     Residential construction and development   3,642    3,569    3,931    3,613    3,936 
     Residential real estate   7,521    7,656    8,082    6,860    5,886 
     Consumer   160    238    529    391    162 
 Total nonperforming loans   15,457    15,323    16,072    13,701    14,944 
   Foreclosed properties     
     Commercial real estate   1,875    1,789    1,988    2,126    1,749 
     Commercial construction and development   7,140    7,392    7,392    7,527    8,276 
     Residential construction and development   11,053    11,182    11,852    12,402    12,635 
     Residential real estate   1,374    1,107    1,390    1,537    831 
 Total foreclosed properties   21,442    21,470    22,622    23,592    23,491 
   Other repossessed assets   18    68    12    57    12 
 Total nonperforming assets$  36,917 $  36,861 $  38,706 $  37,350 $  38,447 
       
 Nonperforming loans to period end loans 0.94% 0.95% 1.02% 0.88% 1.15%
 Nonperforming assets to period end assets 1.73% 1.73% 1.84% 1.78% 2.16%
       
 Troubled debt restructurings     
   Performing$  27,408 $  28,347 $  28,304 $  26,472 $  28,183 
   Nonperforming   76    26    760    464    719 
 Total troubled debt restructurings$  27,484 $  28,373 $  29,064 $  26,936 $  28,902 
                 


      
      
Loans Past Due 30-89 Days     
   For the Quarter Ended 
 Dollars in thousands 3/31/201812/31/20179/30/20176/30/20173/31/2017
       
 Commercial$  539$  586$  378$  470$  162
 Commercial real estate   601   1,082   944   976   2,758
 Construction and development   174   1,127   238   308   291
 Residential real estate   5,218   7,236   6,260   6,943   2,924
 Consumer   425   504   419   548   155
 Other   15   38   92   49   17
   Total$  6,972$  10,573$  8,331$  9,294$  6,307
       


       
SUMMIT FINANCIAL GROUP, INC. (NASDAQ:SMMF)      
Average Balance Sheet, Interest Earnings & Expenses and Average Rates     
Q1 2018 vs Q1 2017        
 Q1 2018 Q1 2017 
 AverageEarnings /Yield / AverageEarnings /Yield / 
Dollars in thousandsBalancesExpenseRate BalancesExpenseRate 
         
ASSETS        
Interest earning assets        
  Loans, net of unearned  interest        
  Taxable$  1,611,813 $  20,2235.09% $  1,278,386 $  15,5494.93% 
  Tax-exempt   16,307    1824.53%    13,292    1865.68% 
 Securities        
  Taxable   191,713    1,3722.90%    186,332    1,1282.46% 
  Tax-exempt   132,306    1,2903.95%    95,300    1,1124.73% 
  Interest bearing deposits other banks        
    and Federal funds sold   39,656    1401.43%    40,698    1521.51% 
Total interest earning assets   1,991,795    23,2074.73%    1,614,008    18,1274.55% 
         
Noninterest earning assets        
  Cash & due from banks   9,962       4,631    
  Premises & equipment   34,586       24,504    
  Other assets   107,125       98,253    
  Allowance for loan losses   (12,737)      (11,761)   
    Total assets$  2,130,731    $  1,729,635    
         
 LIABILITIES AND SHAREHOLDERS' EQUITY       
         
Liabilities        
Interest bearing liabilities        
  Interest bearing         
    demand deposits$  423,095 $  6320.61% $  262,849 $  1480.23% 
  Savings deposits   346,358    7170.84%    339,930    6250.75% 
  Time deposits   622,543    2,2001.43%    540,692    1,6161.21% 
  Short-term borrowings   243,686    1,4052.34%    196,946    9952.05% 
  Long-term borrowings and        
    subordinated debentures   65,338    6864.26%    66,146    6604.05% 
Total interest bearing liabilities   1,701,020    5,6401.34%    1,406,563    4,0441.17% 
         
Noninterest bearing liabilities        
  Demand deposits   210,883       148,286    
  Other liabilities   16,771       17,700    
    Total liabilities   1,928,674       1,572,549    
         
Shareholders' equity   202,057       157,086    
  Total liabilities and        
    shareholders' equity$  2,130,731    $  1,729,635    
         
NET INTEREST EARNINGS $  17,567   $  14,083  
         
NET INTEREST MARGIN  3.58%   3.54% 
         


       
       
SUMMIT FINANCIAL GROUP, INC. (NASDAQ:SMMF)      
Average Balance Sheet, Interest Earnings & Expenses and Average Rates     
Q1 2018 vs Q4 2017        
 Q1 2018 Q4 2017 
 AverageEarnings /Yield / AverageEarnings /Yield / 
Dollars in thousandsBalancesExpenseRate BalancesExpenseRate 
         
ASSETS        
Interest earning assets        
  Loans, net of unearned  interest        
  Taxable$  1,611,813 $  20,2235.09% $  1,562,978 $  19,8795.05% 
  Tax-exempt   16,307    1824.53%    16,902    2345.49% 
Securities        
  Taxable   191,713    1,3722.90%    202,377    1,3282.60% 
  Tax-exempt   132,306    1,2903.95%    142,641    1,6684.64% 
Interest bearing deposits other banks        
    and Federal funds sold   39,656    1401.43%    42,021    1441.36% 
Total interest earning assets   1,991,795    23,2074.73%    1,966,919    23,2534.69% 
         
Noninterest earning assets        
  Cash & due from banks   9,962       9,753    
  Premises & equipment   34,586       34,263    
  Other assets   107,125       111,596    
  Allowance for loan losses   (12,737)      (12,628)   
    Total assets$  2,130,731    $  2,109,903    
         
 LIABILITIES AND SHAREHOLDERS' EQUITY       
         
Liabilities        
Interest bearing liabilities        
  Interest bearing         
    demand deposits$  423,095 $  6320.61% $  405,307 $  4470.44% 
  Savings deposits   346,358    7170.84%    360,630    6840.75% 
  Time deposits   622,543    2,2001.43%    629,871    2,0931.32% 
  Short-term borrowings   243,686    1,4052.34%    220,027    1,2402.24% 
  Long-term borrowings and        
    subordinated debentures   65,338    6864.26%    65,342    6854.16% 
Total interest bearing liabilities   1,701,020    5,6401.34%    1,681,177    5,1491.22% 
         
Noninterest bearing liabilities        
  Demand deposits   210,883       214,624    
  Other liabilities   16,771       12,886    
    Total liabilities   1,928,674       1,908,687    
         
Shareholders' equity    202,057       201,216    
  Total liabilities and        
    shareholders' equity$  2,130,731    $  2,109,903    
         
NET INTEREST EARNINGS $  17,567   $  18,104  
         
NET INTEREST MARGIN  3.58%   3.65%