Summit Financial Group, Inc. (“Company” or “Summit”) (NASDAQ: SMMF)
today reported third quarter 2019 net income of $8.06 million, or
$0.65 per diluted share. In comparison, earnings for second quarter
2019 were $8.56 million, or $0.68 per diluted share, and for third
quarter 2018 were $6.90 million, or $0.55 per diluted share. In the
second quarter 2019, we recognized a $1.91 million pre-tax gain on
the sale of our former insurance agency, Summit Insurance Services,
LLC (“SIS”). Summit achieved returns on average assets
and average tangible equity in third quarter 2019 of 1.41
percent and 15.55 percent, respectively, compared to 1.31 percent
and 15.53 percent, respectively, in the same period of 2018.
Third quarter 2019 earnings compared to both the linked quarter
and third quarter 2018 were positively impacted by increased net
interest income resulting primarily from loan growth and higher
realized securities gains. Also positively impacting third quarter
2019 results, write-downs on foreclosed properties were $133,000 in
Q3 2019 compared to $1.2 million in Q2 2019.
For the nine months ended September 30, 2019, Summit recorded
net income of $23.7 million, or $1.88 per diluted share, compared
with $20.6 million, or $1.66 per diluted share, for the comparable
2018 nine-month period, representing an increase of 15.0 percent or
13.3 percent per diluted share. Our returns on average assets
and average tangible equity for the nine months ended
September 30, 2019 were 1.40 percent and 15.80 percent,
respectively, compared to 1.30 percent and 15.97 percent,
respectively, for the same period of 2018.
Earnings for the nine months ended September 30, 2019 were
positively impacted by increased net interest income resulting
primarily from loan growth as well as a higher net interest margin,
increased realized securities gains and the SIS gain. These results
were partially offset by larger write-downs on foreclosed
properties in Q2 2019 with the goal of selling such properties more
rapidly, lower insurance commission revenue during 2019 and
increased merger-related expenses.
Summit completed its acquisition of Peoples Bankshares, Inc.
(“PBI”) and its subsidiary, First Peoples Bank, headquartered in
Mullens, West Virginia on January 1, 2019 and converted its
business processes and accounts to that of Summit’s during Q2 2019;
accordingly, PBI’s results of operations are included in Summit’s
consolidated results of operations from the date of
acquisition. Therefore, Summit’s third quarter and nine
months ended September 30, 2019 period results reflect increased
levels of average balances, income and expenses compared to the
same periods of 2018. At consummation, PBI had total assets
of $133.1 million, loans of $42.4 million, and deposits of $112.9
million.
Highlights for Q3 2019
- Mortgage warehouse lines of credit increased $43.4 million
during the quarter as we expanded our existing line participations
and established several new participations in light of strong
mortgage refinance and home purchase activity nationally;
- Loan balances, excluding mortgage warehouse lines of credit,
declined $10.6 million during the quarter, despite having increased
$50.9 million year-to-date. The Q3 2019 decline in such loan
balances is principally the result of payoffs of a couple
significant commercial real estate loan participations;
- Net interest income increased 3.26 percent (annualized)
compared to Q2 2019 and increased 10.7 percent year-to-date 2019
versus the same period in 2018, primarily due to our loan
growth;
- Net interest margin in Q3 2019 declined 9 basis points to 3.63
percent as compared to Q2 2019 as yields on loans declined, while
deposit and other funding costs remained stable;
- Efficiency ratio improved to 52.91 percent compared to 56.45
percent in the linked quarter and 54.25 percent for Q3 2018,
primarily as result of our sale of SIS which traditionally had a
low operating margin;
- Realized securities gains of $453,000 in Q3 2019 compared to
$1.09 million in Q2;
- Write-downs of foreclosed properties were $133,000 in Q3 2019
compared to $1.20 million in Q2 2019, while the net gain on sales
of foreclosed properties decreased from $156,000 in Q2 2019 to
$66,000 in Q3 2019;
- Nonperforming assets as a percentage of total assets declined
to 1.45 percent compared to 1.52 percent for the linked quarter and
1.82 percent for the year ago quarter; and
- Announced our entering into a definitive merger agreement to
acquire Cornerstone Financial Services, Inc. and its wholly-owned
subsidiary, Cornerstone Bank, Inc., headquartered in West Union,
West Virginia.
H. Charles Maddy, III, President and Chief Executive Officer of
Summit, commented, “I am very pleased to report that Summit
achieved another quarter of solid core operating performance
highlighted by core revenue growth, an improved efficiency ratio
and continued improvement in asset quality. Further, I am
encouraged that while the balances of our commercial and commercial
real estate loan portfolios exhibited some modest contraction over
the past quarter, we currently also have a robust pipeline of new
loans located within our core footprint which have been approved
and scheduled to close over the next few months. I am also
particularly pleased by the opportunities represented by our
pending acquisition of Cornerstone Financial Services, Inc.,
announced recently and expected to close at beginning of 2020. This
deal 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 2019, consisting of net interest
income and noninterest income, increased 8.2 percent to $23.2
million, principally as a result of higher net interest income
compared to $21.4 million for the third quarter 2018. For the
year-to-date period ended September 30, 2019, total revenue was
$72.1 million compared to $65.0 million for the same period of
2018, representing a 10.9 percent increase primarily as a result of
higher net interest income, increased realized securities gains and
the gain on the sale of SIS.
For the third quarter of 2019, net interest income was $19.4
million, an increase of 12.8 percent from the $17.2 million
reported in the prior-year third quarter and a 0.8 percent increase
compared to the linked quarter. The net interest margin for third
quarter 2019 was 3.63 percent compared to 3.72 percent for the
linked quarter and 3.53 percent for the year-ago quarter. Excluding
the impact of accretion and amortization of fair value acquisition
accounting adjustments, Summit’s net interest margin would have
been 3.59 percent for Q3 2019, 3.62 percent for Q2 2019 and 3.51
percent for Q3 2018.
Noninterest income, consisting primarily of service fee income
from community banking activities and trust and wealth management
fees, for third quarter 2019 was $3.76 million compared to $4.21
million for the comparable period of 2018. Excluding realized
securities gains, noninterest income was $3.31 million for third
quarter 2019, compared to $4.20 million reported for third quarter
2018 and was $3.82 million for the linked quarter, excluding
realized securities gains and the gain on the sale of SIS. Q3 2019
noninterest income declined compared to prior periods primarily due
to the elimination of insurance commission revenue as result of
SIS’ sale in Q2 2019.
We recorded a $500,000 provision for loan losses during third
quarter 2019 and 2018. Our provision continues to be directionally
consistent with changes in the credit quality in our loan
portfolio.
Q3 2019 total noninterest expense increased 3.6 percent to $12.8
million compared to $12.4 million for the prior-year third quarter
and decreased 16.5 percent compared to the linked quarter.
Our decreased noninterest expense compared to the linked quarter is
principally due to reductions in personnel costs resulting from the
sale of SIS and due to increased write-downs on foreclosed
properties during Q2 2019. In addition, our merger-related expenses
totaled $74,000 in Q3 2019 compared to $382,000 in Q2 2019 and
$86,000 in Q3 2018.
Noninterest expense for the first nine months of 2019 increased
12.3 percent compared to the first nine months of 2018. Our
increased noninterest expense is principally due to expenses
associated with the acquired PBI operations (including
merger-related expenses), increased write-downs of foreclosed
properties and to deferred director compensation plan expense of
$560,000 for the first nine months of 2019 compared to $104,000 for
the same period of 2018.
Balance Sheet
At September 30, 2019, total assets were $2.32 billion, an
increase of $123.0 million, or 5.6 percent since December 31, 2018.
Total loans, net of unearned fees and allowance for loan losses,
were $1.84 billion at September 30, 2019, up $156.9 million, or 9.3
percent, from the $1.68 billion reported at year-end 2018.
Loans, excluding mortgage warehouse lines of credit, decreased
$10.6 million during the quarter, or 2.5 percent (on an annualized
basis), and have increased $50.9 million, or 4.1 percent (on an
annualized basis) since year-end 2018.
At September 30, 2019, deposits were $1.83 billion, an increase
of $197.5 million, or 12.1 percent, since year end 2018. During the
first nine months of 2019, checking deposits increased $98.7
million or 13.2 percent, time deposits grew by $77.1 million or
12.7 percent and savings deposits increased $21.7 million or 7.6
percent.
Shareholders’ equity was $242.4 million as of September 30, 2019
compared to $219.8 million at December 31, 2018. In
conjunction with the acquisition of PBI on January 1, 2019, Summit
issued 465,931 shares of common stock valued at $9.0 million to the
former PBI shareholders.
Tangible book value per common share increased to $17.68 at
September 30, 2019 compared to $15.75 at December 31, 2018. Summit
had 12,400,804 outstanding common shares at Q3 2019 quarter end
compared to 12,312,933 at year end 2018.
As announced in Q3 2018, the Board of Directors authorized the
open market repurchase of up to 500,000 shares of the issued and
outstanding shares of Summit's common stock. The timing and
quantity of stock purchases under this repurchase plan were at the
discretion of management. During Q3 2019, the repurchase of
all shares authorized under the Plan was completed, whereby 52,460
shares were repurchased at an average price of $25.59 per share.
The average price of all shares repurchased under the Plan since
its inception was $24.15 per share.
Asset Quality
As of September 30, 2019, nonperforming assets (“NPAs”),
consisting of nonperforming loans, foreclosed properties, and
repossessed assets, were $33.7 million, or 1.45 percent of assets.
This compares to $34.9 million, or 1.52 percent of assets at the
linked quarter-end, and $36.5 million, or 1.66 percent of assets at
year end 2018.
Third quarter 2019 net loan charge-offs were $711,000, or 0.16
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 0.70 percent of total loans
at September 30, 2019, compared to 0.77 percent at year-end
2018.
About the Company
Summit Financial Group, Inc. is a $2.32 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-two banking locations.
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 CORNERSTONE
FINANCIAL SERVICES, INC. (“CORNERSTONE”) 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 Securities and Exchange
Commission (“SEC”) a Preliminary Registration Statement on Form S-4
with respect to the offering of Summit common stock as the merger
consideration under the Securities Act of 1933, which includes
include a proxy statement of Cornerstone seeking approval of the
merger by Cornerstone’s shareholders and a prospectus of Summit.
Summit will request effectiveness of its Registration Statement on
Form S-4 with the SEC and Cornerstone will deliver the proxy
statement/prospectus to its shareholders. In addition, Summit has
filed 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 will 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 Cornerstone
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.
Contact: |
Robert S. Tissue, Executive Vice President & CFO |
Telephone: |
(304) 530-0552 |
Email: |
rtissue@summitfgi.com |
SUMMIT
FINANCIAL GROUP, INC. (NASDAQ: SMMF) |
|
|
|
Quarterly
Performance Summary (unaudited) |
|
|
|
|
|
|
Q3 2019 vs
Q3 2018 |
|
|
|
|
|
|
|
|
|
|
|
|
For the Quarter Ended |
Percent |
Dollars in thousands |
|
9/30/2019 |
|
|
9/30/2018 |
Change |
Statements
of Income |
|
|
|
|
|
|
|
Interest income |
|
|
|
|
|
|
|
Loans, including fees |
$ |
24,940 |
|
$ |
21,295 |
17.1% |
|
Securities |
|
2,184 |
|
|
2,367 |
-7.7% |
|
Other |
|
125 |
|
|
138 |
-9.4% |
|
Total interest income |
|
27,249 |
|
|
23,800 |
14.5% |
|
Interest expense |
|
|
|
|
|
|
|
Deposits |
|
6,214 |
|
|
4,714 |
31.8% |
|
Borrowings |
|
1,615 |
|
|
1,873 |
-13.8% |
|
Total interest expense |
|
7,829 |
|
|
6,587 |
18.9% |
|
Net interest income |
|
19,420 |
|
|
17,213 |
12.8% |
|
Provision for loan
losses |
|
500 |
|
|
500 |
0.0% |
|
Net interest income after
provision for loan losses |
|
18,920 |
|
|
16,713 |
13.2% |
|
|
|
|
|
|
|
|
|
Noninterest income |
|
|
|
|
|
|
|
Insurance commissions |
|
40 |
|
|
1,062 |
-96.2% |
|
Trust and wealth management fees |
|
632 |
|
|
687 |
-8.0% |
|
Service charges on deposit accounts |
|
1,312 |
|
|
1,215 |
8.0% |
|
Bank card revenue |
|
924 |
|
|
793 |
16.5% |
|
Realized securities gains |
|
453 |
|
|
8 |
n/m |
|
Bank owned life insurance income |
|
247 |
|
|
250 |
-1.2% |
|
Other income |
|
151 |
|
|
196 |
-23.0% |
|
Total noninterest income |
|
3,759 |
|
|
4,211 |
-10.7% |
|
Noninterest expense |
|
|
|
|
|
|
|
Salaries and employee benefits |
|
7,044 |
|
|
6,806 |
3.5% |
|
Net occupancy expense |
|
799 |
|
|
856 |
-6.7% |
|
Equipment expense |
|
1,296 |
|
|
1,118 |
15.9% |
|
Professional fees |
|
388 |
|
|
503 |
-22.9% |
|
Advertising and public relations |
|
177 |
|
|
170 |
4.1% |
|
Amortization of intangibles |
|
404 |
|
|
413 |
-2.2% |
|
FDIC premiums |
|
- |
|
|
210 |
n/m |
|
Bank card expense |
|
455 |
|
|
384 |
18.5% |
|
Foreclosed properties expense, net of losses |
|
305 |
|
|
169 |
80.5% |
|
Merger-related expenses |
|
74 |
|
|
86 |
-14.0% |
|
Other expenses |
|
1,864 |
|
|
1,643 |
13.5% |
|
Total noninterest expense |
|
12,806 |
|
|
12,358 |
3.6% |
|
Income before income
taxes |
|
9,873 |
|
|
8,566 |
15.3% |
|
Income taxes |
|
1,812 |
|
|
1,667 |
8.7% |
|
Net income |
$ |
8,061 |
|
$ |
6,899 |
16.8% |
SUMMIT
FINANCIAL GROUP, INC. (NASDAQ: SMMF) |
|
|
|
Quarterly
Performance Summary (unaudited) |
|
|
|
|
|
Q3 2019 vs
Q3 2018 |
|
|
|
|
|
|
|
|
|
|
|
For the Quarter Ended |
Percent |
|
|
|
9/30/2019 |
|
9/30/2018 |
Change |
Per Share
Data |
|
|
|
|
|
|
Earnings per common
share |
|
|
|
|
|
|
Basic |
$ |
0.65 |
$ |
0.56 |
16.1% |
|
Diluted |
$ |
0.65 |
$ |
0.55 |
18.2% |
|
|
|
|
|
|
|
|
Cash dividends |
$ |
0.15 |
$ |
0.13 |
15.4% |
|
Dividend payout
ratio |
|
23.0% |
|
23.3% |
-1.3% |
|
|
|
|
|
|
|
|
Average common shares
outstanding |
|
|
|
|
|
|
Basic |
|
12,412,982 |
|
12,374,350 |
0.3% |
|
Diluted |
|
12,467,777 |
|
12,439,051 |
0.2% |
|
|
|
|
|
|
|
|
Common shares outstanding at
period end |
|
12,400,804 |
|
12,382,450 |
0.1% |
|
|
|
|
|
|
|
Performance Ratios |
|
|
|
|
|
|
Return on average
equity |
|
13.51% |
|
13.00% |
3.9% |
|
Return on average tangible
equity |
|
15.55% |
|
15.53% |
0.1% |
|
Return on average
assets |
|
1.41% |
|
1.31% |
7.6% |
|
Net interest margin
(A) |
|
3.63% |
|
3.53% |
2.8% |
|
Efficiency ratio
(B) |
|
52.91% |
|
54.25% |
-2.5% |
NOTE (A) – Presented on a tax-equivalent basis
assuming a federal tax rate of 21%.
NOTE (B) – Computed on a tax equivalent basis
excluding merger-related expenses, 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) |
|
|
|
|
|
|
2019 vs
2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Nine Months Ended |
Percent |
Dollars in thousands |
|
9/30/2019 |
|
|
9/30/2018 |
Change |
Statements
of Income |
|
|
|
|
|
|
|
Interest income |
|
|
|
|
|
|
|
Loans, including fees |
$ |
72,344 |
|
$ |
62,624 |
15.5% |
|
Securities |
|
7,166 |
|
|
7,060 |
1.5% |
|
Other |
|
490 |
|
|
412 |
18.9% |
|
Total interest income |
|
80,000 |
|
|
70,096 |
14.1% |
|
Interest expense |
|
|
|
|
|
|
|
Deposits |
|
17,745 |
|
|
12,572 |
41.1% |
|
Borrowings |
|
4,998 |
|
|
5,779 |
-13.5% |
|
Total interest expense |
|
22,743 |
|
|
18,351 |
23.9% |
|
Net interest income |
|
57,257 |
|
|
51,745 |
10.7% |
|
Provision for loan
losses |
|
1,050 |
|
|
1,750 |
-40.0% |
|
Net interest income after
provision for loan losses |
|
56,207 |
|
|
49,995 |
12.4% |
|
|
|
|
|
|
|
|
|
Noninterest income |
|
|
|
|
|
|
|
Insurance commissions |
|
1,821 |
|
|
3,188 |
-42.9% |
|
Trust and wealth management fees |
|
1,830 |
|
|
2,026 |
-9.7% |
|
Service charges on deposit accounts |
|
3,716 |
|
|
3,421 |
8.6% |
|
Bank card revenue |
|
2,631 |
|
|
2,343 |
12.3% |
|
Realized securities gains |
|
1,535 |
|
|
828 |
85.4% |
|
Gain on sale of Summit Insurance Services, LLC |
|
1,906 |
|
|
- |
n/a |
|
Bank owned life insurance income |
|
733 |
|
|
773 |
-5.2% |
|
Other income |
|
627 |
|
|
656 |
-4.4% |
|
Total noninterest income |
|
14,799 |
|
|
13,235 |
11.8% |
|
Noninterest expense |
|
|
|
|
|
|
|
Salaries and employee benefits |
|
21,966 |
|
|
20,550 |
6.9% |
|
Net occupancy expense |
|
2,602 |
|
|
2,528 |
2.9% |
|
Equipment expense |
|
3,694 |
|
|
3,271 |
12.9% |
|
Professional fees |
|
1,266 |
|
|
1,222 |
3.6% |
|
Advertising and public relations |
|
484 |
|
|
461 |
5.0% |
|
Amortization of intangibles |
|
1,300 |
|
|
1,261 |
3.1% |
|
FDIC premiums |
|
88 |
|
|
690 |
-87.2% |
|
Bank card expense |
|
1,367 |
|
|
1,080 |
26.6% |
|
Foreclosed properties expense, net of losses |
|
2,236 |
|
|
843 |
165.2% |
|
Merger-related expenses |
|
519 |
|
|
86 |
503.5% |
|
Other expenses |
|
6,473 |
|
|
5,415 |
19.5% |
|
Total noninterest expense |
|
41,995 |
|
|
37,407 |
12.3% |
|
Income before income
taxes |
|
29,011 |
|
|
25,823 |
12.3% |
|
Income taxes |
|
5,293 |
|
|
5,201 |
1.8% |
|
Net income |
$ |
23,718 |
|
$ |
20,622 |
15.0% |
SUMMIT
FINANCIAL GROUP, INC. (NASDAQ: SMMF) |
|
|
|
Nine Month
Performance Summary (unaudited) |
|
|
|
|
|
2019 vs
2018 |
|
|
|
|
|
|
|
|
|
|
|
For the Nine Months Ended |
Percent |
|
|
|
9/30/2019 |
|
9/30/2018 |
Change |
Per Share
Data |
|
|
|
|
|
|
Earnings per common
share |
|
|
|
|
|
|
Basic |
$ |
1.89 |
$ |
1.67 |
13.2% |
|
Diluted |
$ |
1.88 |
$ |
1.66 |
13.3% |
|
|
|
|
|
|
|
|
Cash dividends |
$ |
0.44 |
$ |
0.39 |
12.8% |
|
Dividend payout
ratio |
|
23.2% |
|
23.4% |
-0.9% |
|
|
|
|
|
|
|
|
Average common shares
outstanding |
|
|
|
|
|
|
Basic |
|
12,555,411 |
|
12,366,612 |
1.5% |
|
Diluted |
|
12,614,382 |
|
12,430,227 |
1.5% |
|
|
|
|
|
|
|
|
Common shares outstanding at
period end |
|
12,400,804 |
|
12,382,450 |
0.1% |
|
|
|
|
|
|
|
Performance Ratios |
|
|
|
|
|
|
Return on average
equity |
|
13.48% |
|
13.28% |
1.5% |
|
Return on average tangible
equity |
|
15.80% |
|
15.97% |
-1.1% |
|
Return on average
assets |
|
1.40% |
|
1.30% |
7.7% |
|
Net interest margin
(A) |
|
3.67% |
|
3.56% |
3.1% |
|
Efficiency ratio
(B) |
|
55.34% |
|
54.66% |
1.2% |
NOTE (A) – Presented on a tax-equivalent basis assuming a
federal tax rate of 21%.
NOTE (B) – Computed on a tax equivalent basis
excluding merger-related expenses, gains/losses on sales of assets,
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 |
|
9/30/2019 |
|
|
6/30/2019 |
|
|
3/31/2019 |
|
|
12/31/2018 |
|
|
9/30/2018 |
Statements
of Income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans, including fees |
$ |
24,940 |
|
$ |
24,352 |
|
$ |
23,051 |
|
$ |
22,659 |
|
$ |
21,295 |
|
Securities |
|
2,184 |
|
|
2,396 |
|
|
2,586 |
|
|
2,527 |
|
|
2,367 |
|
Other |
|
125 |
|
|
134 |
|
|
231 |
|
|
127 |
|
|
138 |
|
Total interest income |
|
27,249 |
|
|
26,882 |
|
|
25,868 |
|
|
25,313 |
|
|
23,800 |
|
Interest expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
6,214 |
|
|
5,967 |
|
|
5,564 |
|
|
5,103 |
|
|
4,714 |
|
Borrowings |
|
1,615 |
|
|
1,652 |
|
|
1,731 |
|
|
2,158 |
|
|
1,873 |
|
Total interest expense |
|
7,829 |
|
|
7,619 |
|
|
7,295 |
|
|
7,261 |
|
|
6,587 |
|
Net interest income |
|
19,420 |
|
|
19,263 |
|
|
18,573 |
|
|
18,052 |
|
|
17,213 |
|
Provision for loan
losses |
|
500 |
|
|
300 |
|
|
250 |
|
|
500 |
|
|
500 |
|
Net interest income after provision for loan losses |
|
18,920 |
|
|
18,963 |
|
|
18,323 |
|
|
17,552 |
|
|
16,713 |
|
Noninterest income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Insurance commissions |
|
40 |
|
|
606 |
|
|
1,174 |
|
|
1,132 |
|
|
1,062 |
|
Trust and wealth management fees |
|
632 |
|
|
612 |
|
|
586 |
|
|
627 |
|
|
687 |
|
Service charges on deposit accounts |
|
1,312 |
|
|
1,224 |
|
|
1,180 |
|
|
1,209 |
|
|
1,215 |
|
Bank card revenue |
|
924 |
|
|
893 |
|
|
814 |
|
|
809 |
|
|
793 |
|
Realized securities gains (losses) |
|
453 |
|
|
1,086 |
|
|
(3) |
|
|
(205) |
|
|
8 |
|
Gain on sale of Summit Insurance Services, LLC |
|
- |
|
|
1,906 |
|
|
- |
|
|
- |
|
|
- |
|
Bank owned life insurance income |
|
247 |
|
|
248 |
|
|
238 |
|
|
248 |
|
|
250 |
|
Other income |
|
151 |
|
|
235 |
|
|
241 |
|
|
367 |
|
|
196 |
|
Total noninterest income |
|
3,759 |
|
|
6,810 |
|
|
4,230 |
|
|
4,187 |
|
|
4,211 |
|
Noninterest expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
|
7,044 |
|
|
7,576 |
|
|
7,347 |
|
|
6,928 |
|
|
6,806 |
|
Net occupancy expense |
|
799 |
|
|
880 |
|
|
924 |
|
|
836 |
|
|
856 |
|
Equipment expense |
|
1,296 |
|
|
1,219 |
|
|
1,179 |
|
|
1,139 |
|
|
1,118 |
|
Professional fees |
|
388 |
|
|
475 |
|
|
403 |
|
|
385 |
|
|
503 |
|
Advertising and public relations |
|
177 |
|
|
155 |
|
|
153 |
|
|
193 |
|
|
170 |
|
Amortization of intangibles |
|
404 |
|
|
420 |
|
|
476 |
|
|
410 |
|
|
413 |
|
FDIC premiums |
|
- |
|
|
88 |
|
|
- |
|
|
140 |
|
|
210 |
|
Bank card expense |
|
455 |
|
|
473 |
|
|
439 |
|
|
395 |
|
|
384 |
|
Foreclosed properties expense, net of losses |
|
305 |
|
|
1,545 |
|
|
384 |
|
|
507 |
|
|
169 |
|
Merger-related expenses |
|
74 |
|
|
382 |
|
|
63 |
|
|
59 |
|
|
86 |
|
Other expenses |
|
1,864 |
|
|
2,116 |
|
|
2,492 |
|
|
1,474 |
|
|
1,643 |
|
Total noninterest expense |
|
12,806 |
|
|
15,329 |
|
|
13,860 |
|
|
12,466 |
|
|
12,358 |
|
Income before income
taxes |
|
9,873 |
|
|
10,444 |
|
|
8,693 |
|
|
9,273 |
|
|
8,566 |
|
Income tax expense |
|
1,812 |
|
|
1,880 |
|
|
1,601 |
|
|
1,823 |
|
|
1,667 |
|
Net income |
$ |
8,061 |
|
$ |
8,564 |
|
$ |
7,092 |
|
$ |
7,450 |
|
$ |
6,899 |
SUMMIT
FINANCIAL GROUP, INC. (NASDAQ: SMMF) |
|
|
|
|
|
|
|
|
|
|
Five
Quarter Performance Summary (unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Quarter Ended |
|
|
|
9/30/2019 |
|
6/30/2019 |
|
3/31/2019 |
|
12/31/2018 |
|
9/30/2018 |
Per Share
Data |
|
|
|
|
|
|
|
|
|
|
|
Earnings per common
share |
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
0.65 |
$ |
0.68 |
$ |
0.56 |
$ |
0.60 |
$ |
0.56 |
|
Diluted |
$ |
0.65 |
$ |
0.68 |
$ |
0.56 |
$ |
0.60 |
$ |
0.55 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash dividends |
$ |
0.15 |
$ |
0.15 |
$ |
0.14 |
$ |
0.14 |
$ |
0.13 |
|
Dividend payout
ratio |
|
23.0% |
|
21.9% |
|
25.0% |
|
23.3% |
|
23.3% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Average common shares
outstanding |
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
12,412,982 |
|
12,539,095 |
|
12,717,501 |
|
12,358,104 |
|
12,374,350 |
|
Diluted |
|
12,467,777 |
|
12,600,071 |
|
12,778,644 |
|
12,407,678 |
|
12,439,051 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Common shares outstanding at
period end |
|
12,400,804 |
|
12,449,986 |
|
12,661,528 |
|
12,312,933 |
|
12,382,450 |
|
|
|
|
|
|
|
|
|
|
|
|
Performance Ratios |
|
|
|
|
|
|
|
|
|
|
|
Return on average
equity |
|
13.51% |
|
14.62% |
|
12.28% |
|
13.85% |
|
13.00% |
|
Return on average tangible
equity |
|
15.55% |
|
17.02% |
|
14.80% |
|
16.41% |
|
15.53% |
|
Return on average
assets |
|
1.41% |
|
1.52% |
|
1.27% |
|
1.38% |
|
1.31% |
|
Net interest margin
(A) |
|
3.63% |
|
3.72% |
|
3.66% |
|
3.61% |
|
3.53% |
|
Efficiency ratio
(B) |
|
52.91% |
|
56.45% |
|
56.63% |
|
51.02% |
|
54.25% |
NOTE (A) – Presented on a tax-equivalent basis
assuming a federal tax rate of 21%.
NOTE (B) – Computed on a tax equivalent basis
excluding merger-related expenses, 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 |
|
9/30/2019 |
|
|
6/30/2019 |
|
|
3/31/2019 |
|
|
12/31/2018 |
|
|
9/30/2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks |
$ |
12,374 |
|
$ |
$ 13,481 |
|
$ |
$ 14,265 |
|
$ |
23,061 |
|
$ |
$ 9,382 |
|
Interest bearing deposits
other banks |
|
40,296 |
|
|
42,994 |
|
|
43,689 |
|
|
36,479 |
|
|
44,452 |
|
Securities |
|
265,347 |
|
|
269,920 |
|
|
297,126 |
|
|
293,284 |
|
|
288,040 |
|
Loans, net |
|
1,838,891 |
|
|
1,805,850 |
|
|
1,725,064 |
|
|
1,682,005 |
|
|
1,632,747 |
|
Property held for sale |
|
20,979 |
|
|
21,390 |
|
|
24,393 |
|
|
21,432 |
|
|
22,017 |
|
Premises and equipment,
net |
|
43,592 |
|
|
42,896 |
|
|
39,345 |
|
|
37,553 |
|
|
36,888 |
|
Goodwill and other intangible
assets |
|
23,182 |
|
|
23,585 |
|
|
29,349 |
|
|
25,842 |
|
|
26,252 |
|
Cash surrender value of life
insurance policies |
|
43,216 |
|
|
42,976 |
|
|
42,714 |
|
|
42,420 |
|
|
42,208 |
|
Other assets |
|
35,732 |
|
|
36,022 |
|
|
33,696 |
|
|
38,510 |
|
|
36,741 |
|
Total assets |
$ |
2,323,609 |
|
$ |
$ 2,299,114 |
|
$ |
2,249,641 |
|
$ |
2,200,586 |
|
$ |
2,138,727 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Shareholders'
Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
$ 1,832,285 |
|
|
$ 1,797,493 |
|
|
$ 1,789,032 |
|
|
$ 1,634,826 |
|
|
$ 1,651,064 |
|
Short-term borrowings |
|
206,694 |
|
|
225,343 |
|
|
186,292 |
|
|
309,084 |
|
|
238,403 |
|
Long-term borrowings and
subordinated debentures |
|
20,311 |
|
|
20,315 |
|
|
20,319 |
|
|
20,324 |
|
|
20,328 |
|
Other liabilities |
|
21,897 |
|
|
20,262 |
|
|
20,368 |
|
|
16,522 |
|
|
15,376 |
|
Shareholders' equity |
|
242,422 |
|
|
235,701 |
|
|
233,630 |
|
|
219,830 |
|
|
213,556 |
|
Total liabilities and shareholders' equity |
|
$ 2,323,609 |
|
|
$ 2,299,114 |
|
|
$ 2,249,641 |
|
|
$ 2,200,586 |
|
|
$ 2,138,727 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Book value per common
share |
|
$ 19.55 |
|
|
$ 18.93 |
|
|
$ 18.45 |
|
|
$ 17.85 |
|
|
$ 17.25 |
|
Tangible book value per common
share |
|
$ 17.68 |
|
|
$ 17.04 |
|
|
$ 16.13 |
|
|
$ 15.75 |
|
|
$ 15.13 |
|
Tangible common equity to
tangible assets |
|
9.5% |
|
|
9.3% |
|
|
9.2% |
|
|
8.9% |
|
|
8.9% |
SUMMIT
FINANCIAL GROUP INC. (NASDAQ: SMMF) |
|
|
|
|
Regulatory
Capital Ratios (unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
9/30/2019 |
6/30/2019 |
3/31/2019 |
12/31/2018 |
9/30/2018 |
Summit
Financial Group, Inc. |
|
|
|
|
|
|
CET1 Risk-based Capital |
11.2% |
11.1% |
11.4% |
11.1% |
11.1% |
|
Tier 1 Risk-based Capital |
12.2% |
12.1% |
12.5% |
12.2% |
12.2% |
|
Total Risk-based Capital |
12.8% |
12.8% |
13.2% |
12.9% |
12.9% |
|
Tier 1 Leverage |
10.4% |
10.4% |
10.2% |
10.1% |
10.1% |
|
|
|
|
|
|
|
Summit
Community Bank, Inc. |
|
|
|
|
|
|
CET1 Risk-based Capital |
12.2% |
11.9% |
12.3% |
12.0% |
12.0% |
|
Tier 1 Risk-based Capital |
12.2% |
11.9% |
12.3% |
12.0% |
12.0% |
|
Total Risk-based Capital |
12.9% |
12.6% |
13.0% |
12.8% |
12.7% |
|
Tier 1 Leverage |
10.4% |
10.2% |
10.0% |
10.0% |
9.9% |
SUMMIT
FINANCIAL GROUP INC. (NASDAQ: SMMF) |
|
|
|
|
|
|
|
|
|
Loan
Composition (unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dollars in
thousands |
|
9/30/2019 |
|
|
6/30/2019 |
|
|
3/31/2019 |
|
|
12/31/2018 |
|
|
9/30/2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial |
|
$ |
199,391 |
|
$ |
204,138 |
|
$ |
189,248 |
|
$ |
194,315 |
|
$ |
167,972 |
Mortgage warehouse
lines |
|
145,039 |
|
|
101,607 |
|
|
49,355 |
|
|
39,140 |
|
|
35,910 |
Commercial real
estate |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Owner occupied |
|
255,828 |
|
|
262,901 |
|
|
256,671 |
|
|
257,256 |
|
|
261,290 |
Non-owner occupied |
|
567,670 |
|
|
574,677 |
|
|
585,809 |
|
|
573,932 |
|
|
541,753 |
Construction and
development |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Land and development |
|
69,589 |
|
|
67,769 |
|
|
64,192 |
|
|
68,833 |
|
|
71,819 |
Construction |
|
|
56,255 |
|
|
46,975 |
|
|
36,040 |
|
|
24,731 |
|
|
25,703 |
Residential real
estate |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-jumbo |
|
|
359,399 |
|
|
360,752 |
|
|
359,107 |
|
|
336,977 |
|
|
340,783 |
Jumbo |
|
|
69,815 |
|
|
70,171 |
|
|
69,313 |
|
|
73,599 |
|
|
72,327 |
Home equity |
|
|
78,493 |
|
|
81,373 |
|
|
80,370 |
|
|
80,910 |
|
|
82,018 |
Consumer |
|
|
36,982 |
|
|
36,715 |
|
|
36,046 |
|
|
32,460 |
|
|
33,664 |
Other |
|
|
13,371 |
|
|
11,924 |
|
|
12,045 |
|
|
12,899 |
|
|
12,452 |
Total loans, net of unearned fees |
|
1,851,832 |
|
|
1,819,002 |
|
|
1,738,196 |
|
|
1,695,052 |
|
|
1,645,691 |
Less allowance for
loan losses |
|
12,941 |
|
|
13,152 |
|
|
13,132 |
|
|
13,047 |
|
|
12,944 |
Loans, net |
$ |
1,838,891 |
|
$ |
1,805,850 |
|
$ |
1,725,064 |
|
$ |
1,682,005 |
|
$ |
1,632,747 |
SUMMIT
FINANCIAL GROUP INC. (NASDAQ: SMMF) |
|
|
|
|
|
|
|
|
|
Deposit
Composition (unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dollars
in thousands |
|
|
9/30/2019 |
|
|
6/30/2019 |
|
|
3/31/2019 |
|
|
12/31/2018 |
|
|
9/30/2018 |
Core deposits |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest bearing checking |
$ |
241,999 |
|
$ |
234,397 |
|
$ |
258,679 |
|
$ |
222,120 |
|
$ |
232,697 |
Interest bearing checking |
|
602,059 |
|
|
588,948 |
|
|
560,800 |
|
|
523,257 |
|
|
505,411 |
Savings |
|
|
305,891 |
|
|
301,403 |
|
|
310,646 |
|
|
284,173 |
|
|
301,269 |
Time deposits |
|
|
371,178 |
|
|
365,275 |
|
|
359,141 |
|
|
316,914 |
|
|
316,941 |
Total core deposits |
|
1,521,127 |
|
|
1,490,023 |
|
|
1,489,266 |
|
|
1,346,464 |
|
|
1,356,318 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Brokered time
deposits |
|
227,369 |
|
|
222,901 |
|
|
218,913 |
|
|
220,497 |
|
|
227,312 |
Other non-core
time deposits |
|
83,789 |
|
|
84,569 |
|
|
80,853 |
|
|
67,865 |
|
|
67,434 |
Total deposits |
$ |
1,832,285 |
|
$ |
1,797,493 |
|
$ |
1,789,032 |
|
$ |
1,634,826 |
|
$ |
1,651,064 |
SUMMIT
FINANCIAL GROUP, INC. (NASDAQ: SMMF) |
|
|
|
|
|
|
|
|
|
|
|
|
Asset
Quality Information (unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Quarter Ended |
Dollars
in thousands |
|
9/30/2019 |
|
|
6/30/2019 |
|
|
3/31/2019 |
|
|
12/31/2018 |
|
|
9/30/2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross loan charge-offs |
$ |
843 |
|
$ |
391 |
|
$ |
414 |
|
$ |
705 |
|
$ |
413 |
|
Gross loan recoveries |
|
(132) |
|
|
(111) |
|
|
(249) |
|
|
(307) |
|
|
(278) |
|
Net loan charge-offs (recoveries) |
$ |
711 |
|
$ |
280 |
|
$ |
165 |
|
$ |
398 |
|
$ |
135 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loan charge-offs to
average loans (annualized) |
|
0.16% |
|
|
0.06% |
|
|
0.04% |
|
|
0.10% |
|
|
0.03% |
|
Allowance for loan losses |
$ |
12,941 |
|
$ |
13,152 |
|
$ |
13,132 |
|
$ |
13,047 |
|
$ |
12,944 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan losses as a
percentage of period end loans |
|
0.70% |
|
|
0.72% |
|
|
0.76% |
|
|
0.77% |
|
|
0.79% |
|
Nonperforming assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming loans |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial |
$ |
835 |
|
$ |
948 |
|
$ |
729 |
|
$ |
935 |
|
$ |
801 |
|
Commercial real estate |
|
7,037 |
|
|
6,544 |
|
|
2,981 |
|
|
3,239 |
|
|
5,090 |
|
Residential construction and development |
|
191 |
|
|
66 |
|
|
24 |
|
|
3,198 |
|
|
3,200 |
|
Residential real estate |
|
4,461 |
|
|
5,657 |
|
|
5,928 |
|
|
7,506 |
|
|
7,760 |
|
Consumer |
|
115 |
|
|
160 |
|
|
182 |
|
|
147 |
|
|
118 |
|
Other |
|
100 |
|
|
100 |
|
|
130 |
|
|
- |
|
|
- |
|
Total nonperforming loans |
|
12,739 |
|
|
13,475 |
|
|
9,974 |
|
|
15,025 |
|
|
16,969 |
|
Foreclosed properties |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate |
|
1,514 |
|
|
1,544 |
|
|
1,841 |
|
|
1,762 |
|
|
1,762 |
|
Commercial construction and development |
|
4,909 |
|
|
4,910 |
|
|
6,326 |
|
|
6,479 |
|
|
6,790 |
|
Residential construction and development |
|
12,847 |
|
|
13,132 |
|
|
14,347 |
|
|
11,543 |
|
|
11,614 |
|
Residential real estate |
|
1,709 |
|
|
1,804 |
|
|
1,879 |
|
|
1,648 |
|
|
1,851 |
|
Total foreclosed properties |
|
20,979 |
|
|
21,390 |
|
|
24,393 |
|
|
21,432 |
|
|
22,017 |
|
Other repossessed assets |
|
16 |
|
|
12 |
|
|
34 |
|
|
5 |
|
|
5 |
|
Total nonperforming assets |
$ |
33,734 |
|
$ |
34,877 |
|
$ |
34,401 |
|
$ |
36,462 |
|
$ |
38,991 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming loans to period
end loans |
|
0.69% |
|
|
0.74% |
|
|
0.57% |
|
|
0.89% |
|
|
1.03% |
|
Nonperforming assets to period
end assets |
|
1.45% |
|
|
1.52% |
|
|
1.53% |
|
|
1.66% |
|
|
1.82% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Troubled debt
restructurings |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performing |
$ |
23,420 |
|
$ |
23,266 |
|
$ |
27,845 |
|
$ |
26,609 |
|
$ |
27,441 |
|
Nonperforming |
|
2,443 |
|
|
2,915 |
|
|
- |
|
|
388 |
|
|
113 |
|
Total troubled debt restructurings |
$ |
25,863 |
|
$ |
26,181 |
|
$ |
27,845 |
|
$ |
26,997 |
|
$ |
27,554 |
Loans Past
Due 30-89 Days (unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Quarter Ended |
Dollars
in thousands |
|
9/30/2019 |
|
|
6/30/2019 |
|
|
3/31/2019 |
|
|
12/31/2018 |
|
|
9/30/2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial |
$ |
390 |
|
$ |
375 |
|
$ |
264 |
|
$ |
219 |
|
$ |
607 |
|
Commercial real estate |
|
312 |
|
|
1,719 |
|
|
4,128 |
|
|
161 |
|
|
988 |
|
Construction and
development |
|
65 |
|
|
235 |
|
|
179 |
|
|
194 |
|
|
393 |
|
Residential real estate |
|
5,573 |
|
|
5,670 |
|
|
2,944 |
|
|
6,249 |
|
|
5,513 |
|
Consumer |
|
365 |
|
|
234 |
|
|
432 |
|
|
593 |
|
|
345 |
|
Other |
|
63 |
|
|
9 |
|
|
52 |
|
|
38 |
|
|
11 |
|
Total |
$ |
6,768 |
|
$ |
8,242 |
|
$ |
7,999 |
|
$ |
7,454 |
|
$ |
7,857 |
SUMMIT
FINANCIAL GROUP, INC. (NASDAQ: SMMF) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
Balance Sheet, Interest Earnings & Expenses and Average
Rates |
|
|
|
|
|
|
|
|
|
|
|
|
|
Q3 2019 vs
Q2 2019 vs Q3 2018 (unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q3 2019 |
|
Q2 2019 |
|
Q3 2018 |
|
|
Average |
|
|
Earnings / |
|
Yield / |
|
|
Average |
|
|
Earnings / |
|
Yield / |
|
|
Average |
|
|
Earnings / |
|
Yield / |
Dollars
in thousands |
|
Balances |
|
|
Expense |
|
Rate |
|
|
Balances |
|
|
Expense |
|
Rate |
|
|
Balances |
|
|
Expense |
|
Rate |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest earning assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans, net of unearned interest (1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable |
$ |
1,813,555 |
|
$ |
24,786 |
|
5.42% |
|
$ |
1,749,032 |
|
$ |
24,184 |
|
5.55% |
|
$ |
1,615,700 |
|
$ |
21,154 |
|
5.19% |
Tax-exempt (2) |
|
15,903 |
|
|
195 |
|
4.86% |
|
|
14,695 |
|
|
213 |
|
5.81% |
|
|
15,688 |
|
|
178 |
|
4.50% |
Securities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable |
|
203,288 |
|
|
1,566 |
|
3.06% |
|
|
203,049 |
|
|
1,607 |
|
3.17% |
|
|
155,574 |
|
|
1,227 |
|
3.13% |
Tax-exempt (2) |
|
79,387 |
|
|
782 |
|
3.91% |
|
|
100,307 |
|
|
999 |
|
3.99% |
|
|
146,174 |
|
|
1,443 |
|
3.92% |
Interest bearing deposits other banks and Federal funds sold |
|
35,214 |
|
|
125 |
|
1.41% |
|
|
38,214 |
|
|
134 |
|
1.41% |
|
|
38,642 |
|
|
138 |
|
1.42% |
Total interest earning
assets |
|
2,147,347 |
|
|
27,454 |
|
5.07% |
|
|
2,105,297 |
|
|
27,137 |
|
5.17% |
|
|
1,971,778 |
|
|
24,140 |
|
4.86% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest earning
assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash & due from banks |
|
12,815 |
|
|
|
|
|
|
|
14,124 |
|
|
|
|
|
|
|
9,326 |
|
|
|
|
|
Premises & equipment |
|
43,160 |
|
|
|
|
|
|
|
41,318 |
|
|
|
|
|
|
|
36,533 |
|
|
|
|
|
Other assets |
|
104,789 |
|
|
|
|
|
|
|
109,642 |
|
|
|
|
|
|
|
108,628 |
|
|
|
|
|
Allowance for loan losses |
|
(13,276) |
|
|
|
|
|
|
|
(13,260) |
|
|
|
|
|
|
|
(12,865) |
|
|
|
|
|
Total assets |
$ |
2,294,835 |
|
|
|
|
|
|
$ |
2,257,121 |
|
|
|
|
|
|
$ |
2,113,400 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest bearing
liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest bearing demand deposits |
$ |
594,772 |
|
$ |
1,621 |
|
1.08% |
|
$ |
575,240 |
|
$ |
1,731 |
|
1.21% |
|
$ |
486,107 |
|
$ |
1,168 |
|
0.95% |
Savings deposits |
|
302,331 |
|
|
949 |
|
1.25% |
|
|
305,342 |
|
|
921 |
|
1.21% |
|
|
312,467 |
|
|
857 |
|
1.09% |
Time deposits |
|
674,869 |
|
|
3,644 |
|
2.14% |
|
|
673,272 |
|
|
3,315 |
|
1.97% |
|
|
616,657 |
|
|
2,689 |
|
1.73% |
Short-term borrowings |
|
202,425 |
|
|
1,372 |
|
2.69% |
|
|
187,120 |
|
|
1,397 |
|
2.99% |
|
|
211,211 |
|
|
1,436 |
|
2.70% |
Long-term borrowings and subordinated debentures |
|
20,312 |
|
|
243 |
|
4.75% |
|
|
20,317 |
|
|
255 |
|
5.03% |
|
|
39,265 |
|
|
437 |
|
4.42% |
Total interest bearing
liabilities |
|
1,794,709 |
|
|
7,829 |
|
1.73% |
|
|
1,761,291 |
|
|
7,619 |
|
1.74% |
|
|
1,665,707 |
|
|
6,587 |
|
1.57% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest bearing
liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand deposits |
|
240,193 |
|
|
|
|
|
|
|
241,811 |
|
|
|
|
|
|
|
219,986 |
|
|
|
|
|
Other liabilities |
|
21,320 |
|
|
|
|
|
|
|
19,750 |
|
|
|
|
|
|
|
15,447 |
|
|
|
|
|
Total liabilities |
|
2,056,222 |
|
|
|
|
|
|
|
2,022,852 |
|
|
|
|
|
|
|
1,901,140 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders' equity |
|
238,613 |
|
|
|
|
|
|
|
234,269 |
|
|
|
|
|
|
|
212,260 |
|
|
|
|
|
Total liabilities and shareholders' equity |
$ |
2,294,835 |
|
|
|
|
|
|
$ |
2,257,121 |
|
|
|
|
|
|
$ |
2,113,400 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INTEREST
EARNINGS |
|
|
|
$ |
19,625 |
|
|
|
|
|
|
$ |
19,518 |
|
|
|
|
|
|
$ |
17,553 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INTEREST
MARGIN |
|
|
|
|
|
|
3.63% |
|
|
|
|
|
|
|
3.72% |
|
|
|
|
|
|
|
3.53% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) - For
purposes of this table, nonaccrual loans are included in average
loan balances. |
|
|
|
|
|
|
|
|
|
|
|
|
|
(2) - Interest
income on tax-exempt securities and loans has been adjusted
assuming a Federal tax rate of 21% for all periods presented. |
|
|
The tax
equivalent adjustment resulted in an increase in interest income of
$205,000, $255,000, and $340,000 for Q3 2019, Q2 2019 and Q3
2018, respectively. |
|
|
|
|
|
SUMMIT
FINANCIAL GROUP, INC. (NASDAQ: SMMF) |
|
|
|
|
|
|
|
|
|
|
Average
Balance Sheet, Interest Earnings & Expenses and Average
Rates |
|
|
|
|
|
|
|
|
YTD 2019 vs YTD 2018 (unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
YTD 2019 |
|
YTD 2018 |
|
|
Average |
|
|
Earnings / |
|
Yield / |
|
|
Average |
|
|
Earnings / |
|
Yield / |
Dollars
in thousands |
|
Balances |
|
|
Expense |
|
Rate |
|
|
Balances |
|
|
Expense |
|
Rate |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest earning assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans, net of unearned interest (1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable |
$ |
1,758,645 |
|
$ |
71,877 |
|
5.46% |
|
$ |
1,615,427 |
|
$ |
62,196 |
|
5.15% |
Tax-exempt (2) |
|
15,172 |
|
|
591 |
|
5.21% |
|
|
15,929 |
|
|
542 |
|
4.55% |
Securities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable |
|
200,947 |
|
|
4,858 |
|
3.23% |
|
|
169,177 |
|
|
3,839 |
|
3.03% |
Tax-exempt (2) |
|
98,084 |
|
|
2,920 |
|
3.98% |
|
|
138,539 |
|
|
4,078 |
|
3.94% |
Interest bearing deposits other banks and Federal funds sold |
|
41,642 |
|
|
490 |
|
1.57% |
|
|
39,075 |
|
|
412 |
|
1.41% |
Total interest earning
assets |
|
2,114,490 |
|
|
80,736 |
|
5.10% |
|
|
1,978,147 |
|
|
71,067 |
|
4.80% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest earning
assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash & due from banks |
|
12,941 |
|
|
|
|
|
|
|
9,459 |
|
|
|
|
|
Premises & equipment |
|
40,983 |
|
|
|
|
|
|
|
35,620 |
|
|
|
|
|
Other assets |
|
108,984 |
|
|
|
|
|
|
|
107,789 |
|
|
|
|
|
Allowance for loan losses |
|
(13,283) |
|
|
|
|
|
|
|
(12,715) |
|
|
|
|
|
Total assets |
$ |
2,264,115 |
|
|
|
|
|
|
$ |
2,118,300 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest bearing
liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest bearing demand deposits |
$ |
575,817 |
|
$ |
5,016 |
|
1.16% |
|
$ |
455,637 |
|
$ |
2,701 |
|
0.79% |
Savings deposits |
|
306,083 |
|
|
2,768 |
|
1.21% |
|
|
330,420 |
|
|
2,373 |
|
0.96% |
Time deposits |
|
667,565 |
|
|
9,960 |
|
1.99% |
|
|
626,587 |
|
|
7,498 |
|
1.60% |
Short-term borrowings |
|
196,622 |
|
|
4,241 |
|
2.88% |
|
|
214,005 |
|
|
4,084 |
|
2.55% |
Long-term borrowings and subordinated debentures |
|
20,317 |
|
|
757 |
|
4.98% |
|
|
52,155 |
|
|
1,696 |
|
4.35% |
|
|
1,766,404 |
|
|
22,742 |
|
1.72% |
|
|
1,678,804 |
|
|
18,352 |
|
1.46% |
Noninterest bearing
liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand deposits |
|
243,356 |
|
|
|
|
|
|
|
216,701 |
|
|
|
|
|
Other liabilities |
|
19,669 |
|
|
|
|
|
|
|
15,778 |
|
|
|
|
|
Total liabilities |
|
2,029,429 |
|
|
|
|
|
|
|
1,911,283 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders' equity |
|
234,686 |
|
|
|
|
|
|
|
207,017 |
|
|
|
|
|
Total liabilities and shareholders' equity |
$ |
2,264,115 |
|
|
|
|
|
|
$ |
2,118,300 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INTEREST
EARNINGS |
|
|
|
$ |
$ 57,994 |
|
|
|
|
|
|
$ |
52,715 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INTEREST
MARGIN |
|
|
|
|
|
|
3.67% |
|
|
|
|
|
|
|
3.56% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) - For
purposes of this table, nonaccrual loans are included in average
loan balances. |
|
|
|
|
|
|
|
(2) - Interest
income on tax-exempt securities and loans has been adjusted
assuming a Federal tax rate of 21%. |
|
|
The tax
equivalent adjustment resulted in an increase in interest income of
$737,000 and $970,000 for the |
|
|
|
|
|
YTD 2019
and YTD 2018, respectively. |
|
|
|
|
|
|
|
|
|
|
|
|
|
Summit Financial (NASDAQ:SMMF)
Historical Stock Chart
From Aug 2024 to Sep 2024
Summit Financial (NASDAQ:SMMF)
Historical Stock Chart
From Sep 2023 to Sep 2024