MOOREFIELD, W.Va., Oct. 25, 2018 (GLOBE NEWSWIRE) -- Summit Financial Group, Inc. (“Company” or “Summit”) (NASDAQ: SMMF) today reported record third quarter 2018 net income of $6.90 million, or $0.55 per diluted share, compared to $5.93 million, or $0.48 per diluted share, for the third quarter of 2017, an increase of 16.3 percent, or 14.6 percent per diluted share.

For the nine months ended September 30, 2018, Summit recorded net income of $20.62 million, or $1.66 per diluted share, compared with $9.59 million, or $0.81 per diluted share, for the comparable 2017 nine-month period, representing an increase of 115.0 percent or 104.9 percent per diluted share.  The lower earnings in the 2017 period were principally attributable to a legal settlement during first quarter 2017 which reduced earnings by $0.54 per diluted share.

Highlights for Q3 2018 include:

  • Loan balances, excluding mortgage warehouse lines of credit, increased $34.2 million during the quarter, or 8.7 percent (on an annualized basis);
  • Core deposits grew $21.4 million quarter-over-quarter, or 6.4 percent (on an annualized basis);
  • Net interest margin for the quarter declined 5 basis points to 3.53 percent compared to Q2 2018;
  • Efficiency ratio improved to 54.25 percent compared to 55.88 percent for the linked-quarter;
  • Provision for loan losses decreased $250,000 compared to the prior quarter; and
  • Write-downs of foreclosed properties were $39,000 in Q3 2018 compared to $163,000 in Q2 2018, while the net loss on sales of foreclosed properties decreased to $18,000 in Q3 2018 from a net loss of $58,000 in Q2 2018.

H. Charles Maddy, III, President and Chief Executive Officer of Summit, commented, “I am very pleased to report that Summit achieved record third quarter earnings for the quarter just ended. Further, I am particularly gratified by this past quarter’s robust lending activity, solid deposit growth and strong core operating performance, and I optimistically look forward to the remainder of the year and beyond into 2019 as we seek to be a consistent, high-performing community banking institution. Our pending acquisition of Peoples Bankshares, Inc., expected to close at beginning of 2019, will serve to combine Summit with a financially strong bank that has a similar culture, core values and guiding principles as ours, and shares the same commitment to build long-term client relationships by providing ‘Service Beyond Expectations’.”

Results from Operations

Total revenue for third quarter 2018, consisting of net interest income and noninterest income, increased 0.9 percent to $21.4 million compared to $21.2 million for the third quarter 2017. For the year-to-date period ended September 30, 2018, total revenue was $65.0 million compared to $59.2 million for the same period of 2017, representing a 9.8 percent increase primarily due to the acquisition of First Century Bankshares, Inc. in Q2 2017.

For the third quarter of 2018, net interest income was unchanged at $17.2 million compared to the prior-year third quarter and remained nearly unchanged compared to the linked quarter. The net interest margin for third quarter 2018 was 3.53 percent compared to 3.65 percent for the same year-ago quarter, and 3.58 percent for the linked quarter. 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 3.51 percent for Q3 2018 and 3.54 percent for first nine months of 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 third quarter 2018 was $4.21 million compared to $4.00 million for the comparable period of 2017. Excluding realized securities gains, noninterest income was $4.20 million for third quarter 2018, compared to $3.97 million reported for third quarter 2017 and $4.06 million for the linked quarter.

We recorded a $500,000 provision for loan losses during third quarter 2018 and $375,000 in Q3 2017.  The need for increased loan loss provisioning during 2018 is directionally consistent with changes in the credit quality in our loan portfolio.

Q3 2018 total noninterest expense decreased 0.7 percent to $12.36 million compared to $12.45 million for the prior-year third quarter. Noninterest expense for the first nine months of 2018 decreased 17.6 percent compared to the first nine months of 2017 principally due to 1) $86,000 in merger expenses being incurred in 2018 through September 30 compared to $1.58 million in the 2017 nine-month period and 2) Summit recorded a $9.9 million charge 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 first nine months of 2018 increased 5.4 percent to $37.4 million compared to $35.5 million for the first nine months of 2017, principally as result of the FCB acquisition.

Balance Sheet

At September 30, 2018, total assets were $2.14 billion, an increase of $4.5 million, or 0.2 percent since December 31, 2017. Total loans, net of unearned fees and allowance for loan losses, were $1.63 billion at September 30, 2018, up $39.0 million, or 2.4 percent, from the $1.59 billion reported at year-end 2017.  Loans, excluding mortgage warehouse lines of credit, increased $34.2 million during the quarter, or 8.7 percent (on an annualized basis), and have grown $34.2 million or 2.9 percent (on an annualized basis) since year-end 2017.

At September 30, 2018, deposits were $1.65 billion, an increase of $50.5 million, or 3.2 percent, since year end 2017. During first nine months of 2018, checking deposits increased $110.0 million or 17.5 percent, time deposits declined by $2.6 million or 0.4 percent and savings deposits declined $56.9 million or 15.9 percent.

Shareholders’ equity was $213.6 million as of September 30, 2018 compared to $201.5 million at December 31, 2017.

Tangible book value per common share increased to $15.13 at September 30, 2018 compared to $14.08 at December 31, 2017. Summit had 12,382,450 outstanding common shares at Q3 2018 quarter end compared to 12,358,562 at year end 2017.

Asset Quality

As of September 30, 2018, nonperforming assets (“NPAs”), consisting of nonperforming loans, foreclosed properties, and repossessed assets, were $39.0 million, or 1.82 percent of assets. This compares to $37.4 million, or 1.77 percent of assets at the linked quarter-end, and $38.7 million, or 1.84 percent of assets, at third quarter-end 2017.

Third quarter 2018 net loan charge-offs were $135,000, or 0.03 percent of average loans annualized; while adding $500,000 to the allowance for loan losses through the provision for loan losses. The allowance for loan losses stood at 0.79 percent of total loans at September 30, 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 were excluded, the allowance for loan losses to total loans ratio at September 30, 2018 and December 31, 2017 would have been 0.87 percent and 0.91 percent, respectively.

About the Company

Summit Financial Group, Inc. is a $2.14 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.

ADDITIONAL INFORMATION ABOUT THE MERGER WITH PEOPLES BANKSHARES, INC. (“PEOPLES”) AND WHERE TO FIND IT

This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities, or a solicitation of any vote or approval, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. In connection with the proposed Merger, Summit has filed with the SEC a Registration Statement on Form S-4 with respect to the offering of Summit common stock as the Merger Consideration under the Securities Act, which includes a proxy statement of Peoples seeking approval of the Merger by Peoples’ shareholders and a prospectus of Summit. Peoples delivered the proxy statement/prospectus to its shareholders. In addition, Summit may file other relevant documents concerning the proposed Merger with the SEC. Investors and security holders are urged to read the registration statement and proxy statement/prospectus and other relevant documents because they contain important information about the proposed Merger.

Investors and security holders may obtain free copies of these documents through the website maintained by the SEC at http://www.sec.gov. Security holders of Summit and Peoples may also obtain free copies of these documents by directing a request to Ms. Teresa Ely, Summit’s Director of Shareholder Relations, by telephone at (304) 530-0526 or by email at tely@summitfgi.com or by accessing these documents at Summit’s website: www.summitfgi.com.

   
SUMMIT FINANCIAL GROUP, INC. (NASDAQ:  SMMF)  
Quarterly Performance Summary (unaudited)   
Q3 2018 vs Q3 2017   
    
   For the Quarter Ended Percent 
Change 
Dollars in thousands 9/30/20189/30/2017
 Statements of Income    
 Interest income   
 Loans, including fees$  21,295$  19,4909.3%
 Securities   2,367   2,397-1.3%
 Other   138   149-7.4%
 Total interest income   23,800   22,0368.0%
 Interest expense   
 Deposits   4,714   2,96359.1%
 Borrowings   1,873   1,8411.7%
 Total interest expense   6,587   4,80437.1%
 Net interest income   17,213   17,232-0.1%
 Provision for loan losses   500   37533.3%
 Net interest income after provision for loan losses   16,713   16,857-0.9%
     
 Noninterest income   
 Insurance commissions   1,062   1,0431.8%
 Trust and wealth management fees   687   58916.6%
 Service charges on deposit accounts   1,215   1,1624.6%
 Bank card revenue   793   7387.5%
 Realized securities gains   8   26-69.2%
 Bank owned life insurance income   250   255-2.0%
 Other income   196   1874.8%
 Total noninterest income   4,211   4,0005.3%
 Noninterest expense   
 Salaries and employee benefits   6,806   6,6103.0%
 Net occupancy expense   856   8471.1%
 Equipment expense   1,118   1,0932.3%
 Professional fees   503   37334.9%
 Advertising and public relations   170   13724.1%
 Amortization of intangibles   413   448-7.8%
 FDIC premiums   210   310-32.3%
 Bank card expense   384   395-2.8%
 Foreclosed properties expense, net of losses   169   233-27.5%
 Merger-related expense   86   11681.8%
 Other expenses   1,643   1,990-17.4%
 Total noninterest expense   12,358   12,447-0.7%
 Income before income taxes   8,566   8,4101.9%
 Income taxes   1,667   2,480-32.8%
 Net income$  6,899$  5,93016.3%
        


   
SUMMIT FINANCIAL GROUP, INC. (NASDAQ:  SMMF)  
Quarterly Performance Summary (unaudited)   
Q3 2018 vs Q3 2017  
     
   For the Quarter Ended  Percent 
 Change 
  9/30/20189/30/2017
 Per Share Data    
 Earnings per common share   
 Basic$  0.56 $  0.48 16.7%
 Diluted$  0.55 $  0.48 14.6%
     
 Cash dividends$  0.13 $  0.11 18.2%
     
 Average common shares outstanding   
 Basic   12,374,350    12,299,987 0.6%
 Diluted   12,439,051    12,318,959 1.0%
     
 Common shares outstanding at period end   12,382,450    12,311,723 0.6%
     
 Performance Ratios    
 Return on average equity 13.00% 12.10%7.4%
 Return on average tangible equity 14.85% 14.12%5.2%
 Return on average assets 1.31% 1.14%14.9%
 Net interest margin 3.53% 3.65%-3.3%
 Efficiency ratio (A) 54.25% 54.51%-0.5%
     

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

   
SUMMIT FINANCIAL GROUP, INC. (NASDAQ:  SMMF)  
Nine Month Performance Summary (unaudited)   
2018 vs 2017   
     
   For the Nine Months Ended  Percent 
 Change 
 Dollars in thousands 9/30/20189/30/2017
 Statements of Income    
 Interest income   
 Loans, including fees$  62,624$  54,87814.1%
 Securities   7,060   6,5977.0%
 Other   412   466-11.6%
 Total interest income   70,096   61,94113.2%
 Interest expense   
 Deposits   12,572   7,98757.4%
 Borrowings   5,779   5,24510.2%
 Total interest expense   18,351   13,23238.7%
 Net interest income   51,745   48,7096.2%
 Provision for loan losses   1,750   875100.0%
 Net interest income after provision for loan losses   49,995   47,8344.5%
     
 Noninterest income   
 Insurance commissions   3,188   3,0006.3%
 Trust and wealth management fees   2,026   1,28457.8%
 Service charges on deposit accounts   3,421   2,91017.6%
 Bank card revenue   2,343   1,95519.8%
 Realized securities gains   828   58n/m
 Bank owned life insurance income   773   7582.0%
 Other income   656   53123.5%
 Total noninterest income   13,235   10,49626.1%
 Noninterest expense   
 Salaries and employee benefits   20,550   18,55510.8%
 Net occupancy expense   2,528   2,23912.9%
 Equipment expense   3,271   2,85914.4%
 Professional fees   1,222   1,01220.8%
 Advertising and public relations   461   39317.3%
 Amortization of intangibles   1,261   97429.5%
 FDIC premiums   690   815-15.3%
 Bank card expense   1,080   1,113-3.0%
 Foreclosed properties expense, net of losses   843   8242.3%
 Litigation settlement   -   9,900n/a
 Merger-related expense   86   1,575n/m
 Other expenses   5,415   5,1405.4%
 Total noninterest expense   37,407   45,399-17.6%
 Income before income taxes   25,823   12,93199.7%
 Income taxes   5,201   3,33955.8%
 Net income$  20,622$  9,592115.0%
     


   
SUMMIT FINANCIAL GROUP, INC. (NASDAQ:  SMMF)  
Nine Month Performance Summary (unaudited)   
2018 vs 2017  
     
   For the Nine Months Ended  Percent 
 Change 
  9/30/20189/30/2017
Per Share Data    
 Earnings per common share   
 Basic$  1.67 $  0.81 106.2%
 Diluted$  1.66 $  0.81 104.9%
     
 Cash dividends$  0.39 $  0.33 18.2%
     
 Average common shares outstanding   
 Basic   12,366,612    11,781,342 5.0%
 Diluted   12,430,227    11,807,002 5.3%
     
 Common shares outstanding at period end   12,382,450    12,311,723 0.6%
     
Performance Ratios    
 Return on average equity 13.28% 7.06%88.1%
 Return on average tangible equity 15.27% 8.08%89.0%
 Return on average assets 1.30% 0.65%100.0%
 Net interest margin 3.56% 3.67%-3.0%
 Efficiency ratio (A) 54.66% 52.76%3.6%
     

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 (unaudited)    
      
   For the Quarter Ended 
Dollars in thousands 9/30/20186/30/20183/31/201812/31/20179/30/2017
Statements of Income      
 Interest income     
 Loans, including fees$  21,295$  20,962$  20,366$  20,031 $  19,490
 Securities   2,367   2,303   2,391   2,412    2,397
 Other   138   134   140   144    149
 Total interest income   23,800   23,399   22,897   22,587    22,036
 Interest expense     
 Deposits   4,714   4,309   3,549   3,224    2,963
 Borrowings   1,873   1,815   2,091   1,925    1,841
 Total interest expense   6,587   6,124   5,640   5,149    4,804
 Net interest income   17,213   17,275   17,257   17,438    17,232
 Provision for loan losses   500   750   500   375    375
 Net interest income after provision for loan losses   16,713   16,525   16,757   17,063    16,857
 Noninterest income     
 Insurance commissions   1,062   1,013   1,113   1,005    1,043
 Trust and wealth management fees   687   672   667   578    589
 Service charges on deposit accounts   1,215   1,116   1,091   1,200    1,162
 Bank card revenue   793   801   749   742    738
 Realized securities gains (losses)   8   87   732   (71)   26
 Bank owned life insurance income   250   249   275   258    255
 Other income   196   210   249   219    187
 Total noninterest income   4,211   4,148   4,876   3,931    4,000
 Noninterest expense     
 Salaries and employee benefits   6,806   6,922   6,821   6,520    6,610
 Net occupancy expense   856   840   832   772    847
 Equipment expense   1,118   1,071   1,083   1,095    1,093
 Professional fees   503   385   333   355    373
 Advertising and public relations   170   188   103   185    137
 Amortization of intangibles   413   413   436   435    448
 FDIC premiums   210   240   240   250    310
 Bank card expense   384   361   335   319    395
 Foreclosed properties expense, net of losses   169   350   325   516    233
 Merger-related expense   86   -   -   14    11
 Other expenses   1,643   1,965   1,806   1,885    1,990
 Total noninterest expense   12,358   12,735   12,314   12,346    12,447
 Income before income taxes   8,566   7,938   9,319   8,648    8,410
 Income tax expense   1,667   1,658   1,876   6,325    2,480
 Net income$  6,899$  6,280$  7,443$  2,323 $  5,930

 

      
SUMMIT FINANCIAL GROUP, INC. (NASDAQ:  SMMF)     
Five Quarter Performance Summary (unaudited)     
       
  For the Quarter Ended
  9/30/20186/30/20183/31/201812/31/20179/30/2017
Per Share Data      
 Earnings per common share     
 Basic$  0.56$  0.51$  0.60$          0.19$  0.48
 Diluted$  0.55$  0.51$  0.60$  0.19$  0.48
       
 Cash dividends$  0.13$  0.13$  0.13$  0.11$  0.11
       
 Average common shares outstanding     
 Basic12,374,35012,366,52212,358,84912,325,06712,299,987
 Diluted12,439,05112,431,98412,383,75712,371,50712,318,959
       
 Common shares outstanding at period end12,382,45012,373,74712,366,36012,358,56212,311,723
       
Performance Ratios      
 Return on average equity13.00%12.16%14.73%4.62%12.10%
 Return on average tangible equity14.85%13.98%17.04%5.36%14.12%
 Return on average assets1.31%1.19%1.40%0.44%1.14%
 Net interest margin3.53%3.58%3.58%3.65%3.65%
 Efficiency ratio (A)54.25%55.88%53.84%52.44%54.51%
       

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

     
SUMMIT FINANCIAL GROUP, INC. (NASDAQ:  SMMF)    
Selected Balance Sheet Data (unaudited)     
       
Dollars in thousands, except per share amounts 9/30/20186/30/20183/31/201812/31/20179/30/2017
       
Assets      
 Cash and due from banks$  9,382 $  8,314 $  9,042 $  9,641 $  9,220 
 Interest bearing deposits other banks   44,452    38,097    38,365    42,990    41,994 
 Securities   288,040    283,221    296,890    328,723    328,726 
 Loans, net   1,632,747    1,617,373    1,631,150    1,593,744    1,559,328 
 Property held for sale   22,017    21,606    21,442    21,470    22,622 
 Premises and equipment, net   36,888    36,017    35,554    34,209    34,220 
 Goodwill and other intangible assets   26,252    26,665    27,077    27,513    27,879 
 Cash surrender value of life insurance policies   42,208    41,932    41,668    41,358    41,076 
 Other assets   36,741    34,427    33,707    34,592    36,071 
   Total assets$  2,138,727 $  2,107,652 $  2,134,895 $  2,134,240 $  2,101,136 
       
Liabilities and Shareholders' Equity      
 Deposits$  1,651,064 $  1,639,996 $  1,654,523 $  1,600,601 $  1,616,768 
 Short-term borrowings   238,403    202,429    193,513    250,499    202,988 
 Long-term borrowings and subordinated debentures   20,328    40,332    65,336    65,340    65,344 
 Other liabilities   15,376    15,016    16,514    16,295    17,254 
 Shareholders' equity   213,556    209,879    205,009    201,505    198,782 
   Total liabilities and shareholders' equity$  2,138,727 $  2,107,652 $  2,134,895 $  2,134,240 $  2,101,136 
       
 Book value per common share$  17.25 $  16.96 $  16.55 $  16.30 $  16.15 
 Tangible book value per common share$  15.13 $  14.81 $  14.36 $  14.08 $  13.88 
 Tangible common equity to tangible assets 8.9% 8.8% 8.4% 8.3% 8.2%
       


      
SUMMIT FINANCIAL GROUP INC. (NASDAQ:  SMMF)
     
Regulatory Capital Ratios (unaudited)     
       
  9/30/20186/30/20183/31/201812/31/20179/30/2017
Summit Financial Group, Inc.     
 CET1 Risk-based Capital11.1%11.0%10.7%10.6%10.8%
 Tier 1 Risk-based Capital12.2%12.1%11.8%11.8%11.9%
 Total Risk-based Capital12.9%12.8%12.5%12.5%12.7%
 Tier 1 Leverage Ratio10.1%9.9%9.5%9.4%9.5%
       
Summit Community Bank, Inc.     
 CET1 Risk-based Capital12.0%12.0%11.7%11.7%11.8%
 Tier 1 Risk-based Capital12.0%12.0%11.7%11.7%11.8%
 Total Risk-based Capital12.7%12.8%12.5%12.5%12.6%
 Tier 1 Leverage Ratio9.9%9.8%9.5%9.4%9.4%
       


    
SUMMIT FINANCIAL GROUP INC. (NASDAQ:  SMMF)   
Loan Composition (unaudited)     
      
Dollars in thousands9/30/20186/30/20183/31/201812/31/20179/30/2017
      
Commercial$  167,972$  171,410$  189,586$  189,981$  187,193
Mortgage warehouse lines   35,910   54,332   45,702   30,757   33,525
Commercial real estate     
Owner occupied   272,475   262,174   265,075   250,202   239,840
Non-owner occupied   530,568   503,047   498,445   484,902   464,543
Construction and development     
Land and development   71,819   74,018   66,841   67,219   71,412
Construction   25,703   25,711   33,327   33,412   28,756
Residential real estate     
Non-jumbo   340,783   343,044   346,477   354,101   355,642
Jumbo   72,327   66,831   67,169   62,267   61,253
Home equity   82,018   82,409   83,382   84,028   82,720
Consumer   33,664   34,249   34,825   36,202   36,915
Other   12,452   12,728   12,578   13,238   9,994
Total loans, net of unearned fees   1,645,691   1,629,953   1,643,407   1,606,309   1,571,793
Less allowance for loan losses   12,944   12,580   12,257   12,565   12,465
Loans, net$  1,632,747$  1,617,373$  1,631,150$  1,593,744$  1,559,328
      


    
SUMMIT FINANCIAL GROUP INC. (NASDAQ:  SMMF)   
Deposit Composition (unaudited)    
      
Dollars in thousands9/30/20186/30/20183/31/201812/31/20179/30/2017
Core deposits     
  Non-interest bearing checking$  232,697$  217,134$  219,293$  217,493$  215,910
  Interest bearing checking   505,411   472,041   447,172   410,606   397,843
  Savings   301,269   322,940   346,962   358,168   362,653
  Time deposits   316,941   322,801   318,556   318,036   322,338
Total core deposits   1,356,318   1,334,916   1,331,983   1,304,303   1,298,744
      
  Brokered deposits   227,312   238,662   242,049   202,509   205,274
  Other non-core time deposits   67,434   66,418   80,491   93,789   112,750
Total deposits$  1,651,064$  1,639,996$  1,654,523$  1,600,601$  1,616,768
      


     
SUMMIT FINANCIAL GROUP, INC. (NASDAQ:  SMMF)    
Asset Quality Information (unaudited)     
       
   For the Quarter Ended 
 Dollars in thousands 9/30/20186/30/20183/31/201812/31/20179/30/2017
       
 Gross loan charge-offs$  413 $  525 $  960 $  550 $  309 
 Gross loan recoveries   (278)   (97)   (153)   (276)   (67)
 Net loan charge-offs (recoveries)$  135 $  428 $  807 $  274 $  242 
       
 Net loan charge-offs to average loans (annualized) 0.03% 0.10% 0.20% 0.07% 0.06%
                 
 Allowance for loan losses$  12,944 $  12,580 $  12,257 $  12,565 $  12,465 
 Allowance for loan losses as a percentage of period end loans 0.79% 0.77% 0.75% 0.78% 0.79%
       
 Nonperforming assets:     
 Nonperforming loans     
 Commercial$  801 $  954 $  734 $  696 $  757 
 Commercial real estate   5,090    3,238    3,400    3,164    2,773 
 Residential construction and development   3,200    3,233    3,642    3,569    3,931 
 Residential real estate   7,760    8,241    7,521    7,656    8,082 
 Consumer   118    110    160    238    529 
 Total nonperforming loans   16,969    15,776    15,457    15,323    16,072 
 Foreclosed properties     
 Commercial real estate   1,762    1,818    1,875    1,789    1,988 
 Commercial construction and development   6,790    6,815