Back to SMMF
Summit Financial Group Reports 2009 Full Year and Fourth Quarter Results

MOOREFIELD, W.V., March 4, 2010 (GLOBE NEWSWIRE) -- Summit Financial Group, Inc. ("Company" or "Summit") (Nasdaq:SMMF) today reported full-year 2009 net loss applicable to common shares of $790,000, or ($0.11) per diluted share, compared to 2008 net income of $2.30 million, or $0.31 per diluted share. For the fourth quarter of 2009, net loss applicable to common shares was $508,000, or ($0.07) per diluted share, compared with net income of $3.56 million, or $0.48 per diluted share, in the prior-year fourth quarter.

The loss from nonrecurring items reported for 2009 totaled $4.60 million ($2.90 million after-tax, or $0.38 per diluted share), including a $1.50 million gain on the sale of securities, other-than-temporary-impairment ("OTTI") charges of $5.37 million on securities, and a $735,000 charge related to the industry-wide special FDIC assessment. For 2008, the loss from nonrecurring items was $6.56 million ($4.13 million after-tax, or $0.56 per diluted share), including OTTI charges of $7.06 million on securities, a $196,000 write-down of foreclosed property ("OREO") and a $705,000 gain in the fair value of interest rate swaps. Excluding nonrecurring items from full-year results, operating income applicable to common shares was $2.11 million for 2009, or $0.27 per diluted share, compared to 2008 operating income of $6.43 million, or $0.87 per diluted share.

Fourth quarter 2009 results include nonrecurring gains on the sale of securities of $773,000 ($487,000 after-tax, or $0.06 per diluted share) and a $383,000 OTTI charge on securities ($241,000 after-tax, or $0.03 per diluted share). For the prior-year fourth quarter, nonrecurring losses totaled $1.22 million ($768,000 after-tax, or $0.11 per diluted share), including OTTI charges of $1.02 million and a $196,000 OREO write-down. Excluding the nonrecurring items, 2009 fourth quarter operating loss applicable to common shares was $754,000 or ($0.10) per diluted share, compared to operating income of $4.33 million, or $0.59 per diluted share, for 2008.  

H. Charles Maddy III, President and Chief Executive Officer of Summit Financial Group, Inc., commented, "We continue to run our bank for the benefit of our communities – the people and their businesses – and our performance from ongoing banking activities reflects our success in these areas. In so many ways this past year, we have strengthened our bank, our products and our people, and the results are clear. We increased local retail deposits with our recently introduced savings products; we continue to make residential real estate loans as well as loans to small businesses in our communities. Our operations are becoming more efficient, which should position us more favorably in future quarters and our capital levels remain significantly above regulatory requirements for a well-capitalized bank.

"This past year, however, has also been one of the most challenging we've encountered in our long history. The severity of the recession has finally begun to moderate, and our local economies are beginning to stabilize. But they have a long way to go before a return to full health. Unemployment remains uncomfortably high; even in West Virginia – which we've always counted on for its stability – the unemployment rate has nearly doubled over the past year.

"Credit costs continue to take their toll on earnings. The majority of our larger-ticket credit problems originate in Northern Virginia, where the impact of the housing bubble and its subsequent fallout have been much more severe. Existing home prices have declined more than 40 percent from their peak, and homebuilding remains at an extremely low level. On the positive side, Northern Virginia traditionally has strong demographics, including a net population influx and a well-diversified economic base, so we should see a good recovery once a new post-recessionary equilibrium is achieved.

"Meanwhile, we are working actively with our borrowers to support and assist them while we wait for the markets' recovery. Many of the problem loans and foreclosed real estate on our books are high quality projects where borrowers simply ran out of cash. We've begun to market these projects and, in most cases, the initial responses have been encouraging."

2009 Highlights include:

  • Operating performance remains healthy. Excluding nonrecurring items, 2009 operating revenue of $53.3 million remains virtually unchanged from year-ago levels despite higher levels of nonaccruing assets. Operating expenses, excluding the one-time special FDIC assessment, increased by only 5.9 percent, including sharply higher credit and regulatory costs.
     
  • Asset quality continues to deteriorate. In 2009, nonperforming assets increased by $51.4 million. Loans charged off in 2009 totaled $22.3 million. $20.3 million was added to the allowance for loan losses.
     
  • The deposit mix benefited from higher levels of retail deposits, primarily savings accounts, allowing Summit to reduce brokered deposits and short-term borrowings.
     
  • Summit raised a total of $10.5 million in regulatory capital in 2009 in the form of convertible preferred stock and subordinated debt. Summit Community Bank (the "Bank") is "well-capitalized" in accordance with regulatory capital guidelines; however, Summit's cash dividend to common shareholders was eliminated to conserve capital until economic conditions further improve.  

Results from Operations

Total revenue, consisting of net interest income and noninterest income, was $49.3 million for 2009, up 5.1 percent from the $46.9 million of revenue generated in 2008. Excluding nonrecurring charges (net of tax) aggregating $3.98 million in 2009 and $6.43 million in 2008 from total revenue, operating revenue was $53.3 million for 2009, virtually unchanged from $53.4 million in 2008. Net interest income was $43.5 million, a 1.2 percent decline from the $44.1 million reported in 2008. The decline resulted from a 17 basis point, or 5.4 percent, reduction in the net interest margin, from an average of 3.13 percent for 2008 to 2.96 percent for 2009, partially offset by 4.2 percent growth of average earning assets over the same twelve-month period. The 2009 fourth quarter net interest margin was 2.83 percent, down 21 basis points from the year-ago period.

Noninterest income for 2009 on a GAAP basis was $5.80 million compared to $2.87 million reported in 2008. Excluding nonrecurring charges totaling a net $3.87 million in 2009 and $6.56 million in 2008, including for both years, a securities impairment charge, gains on the sale of securities and other assets, and for 2008 only, the OREO write-down and change in the fair value of interest rate swaps, noninterest income from operations for 2009 was $9.78 million compared with $9.30 million for the prior year, an increase of 5.2 percent.

The provision for loan losses was $20.3 million for 2009 compared to $15.5 million for 2008, up 31.1 percent. The larger 2009 provision reflects a higher level of nonperforming loans and a higher level of net loan charge-offs in 2009: $20.3 million compared to $7.8 million for 2008, up $12.5 million. As of December 31, 2009, the allowance for loan losses was 1.47 percent of total loans compared with 1.18 percent and 1.40 percent at September 30, 2009 and December 31, 2008, respectively.

Noninterest expense for the 2009 full-year was $31.9 million, up $2.47 million, or 8.4 percent, from the $29.4 million reported in 2008. Excluding the one-time special FDIC insurance premium of $735,000 assessed in the June 2009 quarter, noninterest expense from operations increased by 5.9 percent. Costs associated with the administration and sale of OREO increased by a net $336,000 in 2009, while FDIC premiums, excluding the one-time special assessment, were $1.74 million higher in 2009. Summit partially offset rising credit and regulatory costs by disciplined control of overhead expenses; salaries and benefits, occupancy, and equipment expense which together decreased by $714,000, or 3.4 percent, year over year.

Balance Sheet

As of December 31, 2009, total assets were $1.58 billion, down $42.5 million, or 2.6 percent, from December 31, 2008. Total loans, net of unearned interest and fees, were $1.15 billion, a decline of $54.8 million, or 4.5 percent, from the $1.21 billion at year-end 2008. Commercial real estate loans constitute the largest loan category – 40 percent of the portfolio at year-end 2009 – while residential real estate loans contributed an additional 32 percent share. Construction and development ("C&D") loans, at 14 percent of the 2009 year-end loan portfolio, were the only category to have declined significantly during the course of the year, down $53.4 million, or 25 percent, primarily through a combination of loan charge-offs and foreclosures.

Total deposits as of December 31, 2009 were $1.02 billion, up $51.5 million, or 5.3 percent, compared to $966 million at December 2008. Summit used this opportunity to improve its funding mix, replacing $103.4 million of short-term borrowings with $106.3 million of retail deposits, driven primarily by the successful introduction of a new internet savings account product, SFGI Direct. Savings account balances grew by $126.7 million during 2009.

Loan paydowns, due to a combination of weaker demand and aggressive management of problem loans, allowed Summit to reduce brokered time deposits by $54.8 million, or 18.5 percent, during the course of the year. At year-end 2009, brokered deposits accounted for 23.8 percent of total deposits compared to 30.7 percent for the year-ago period.

Asset Quality

Nonperforming assets ("NPAs") at December 31, 2009 were $107.5 million, or 6.8 percent of total assets, compared to $56.1 million (3.5 percent of total assets) at December 31, 2008, a net increase of $51.4 million. At December 31, 2009, C&D and CRE accounted for the majority of problem assets, 54.5 percent and 37.2 percent, respectively. Nonperforming loans accounted for $66.9 million of total NPAs and foreclosed real estate of $40.3 million accounted for the remainder.

Net loan charge-offs for 2009 totaled $20.3 million, or 1.70 percent of average loans compared to $7.8 million, or 0.68 percent of average loans, for 2008. For the fourth quarter of 2009, net charge-offs were $3.67 million, or 1.25 percent of average loans annualized. This compares to a loan loss provision of $20.3 million for 2009, and $5.5 million for the fourth quarter. At year-end 2009, the loan loss allowance was $17.0 million, or 1.47 percent of total loans.

Nonperforming CRE assets were $40.0 million at year-end 2009, consisting of $35.2 million in nonperforming loans and $4.8 million of OREO. During the course of the year, nonperforming CRE assets increased by $14.8 million, and $0.5 million was charged off. Within this category, four properties account for approximately 90 percent of problem CRE assets. Mr. Maddy added, "We transferred one large credit this past quarter to nonperforming status; it is collateralized by a recently completed hotel in an excellent location but still has to build occupancy to cover debt service. All four of these properties are attractive and saleable."

Nonperforming C&D assets stood at $58.6 million at year-end 2009, consisting of $26.3 million of nonperforming loans and $32.3 million of OREO. During 2009, nonperforming C&D assets increased by $33.4 million and $16.9 million of C&D loans were charged off. Within this category, eight nonaccruing loans and nine foreclosed properties account for 78 percent of problem C&D assets. Residential nonperforming assets were $7.81 million at December 31, 2009, divided approximately 60/40 between loans and OREO. During the course of the year, nonaccrual residential loans declined modestly, by $423,000, to $4.6 million at year-end. In addition, $3.2 million was foreclosed and $3.1 million was charged off.

Capital Adequacy

Shareholders' equity at December 31, 2009 was $90.7 million compared to $87.2 million at December 31, 2008. In 2009, Summit raised an aggregate $10.5 million of additional regulatory capital, comprised of $3.7 million in convertible preferred stock and $6.8 million in subordinated debentures to help bolster the Bank's "well-capitalized" status. Total common shares outstanding as of 2009 year-end were 7,425,472.

In conclusion, Mr. Maddy added, "We anticipate a stronger economy and an improving real estate market in the coming quarters. Within this context, we've stepped up our efforts to dispose of foreclosed properties. We are hopeful that initiatives in progress will reduce nonperforming assets with only a modest impact on our capital base."

About the Company

Summit Financial Group, Inc., a financial holding company with total assets of $1.6 billion, operates fifteen banking locations through its wholly-owned community bank, Summit Community Bank, headquartered in Moorefield, West Virginia. Summit also operates Summit Insurance Services, LLC, headquartered in Moorefield, West Virginia.

The Summit Financial Group, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=2990

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; changes in local real estate values; and changes in the national and local economies. We undertake no obligation to revise these statements following the date of this press release.

NON-GAAP FINANCIAL MEASURES

This press release contains financial information determined by methods other than in accordance with generally accepted accounting principles in the United States of America ("GAAP"). Specifically, Summit adjusted several GAAP performance measures to exclude the effects of other-than-temporary impairment charge on securities, realized securities gains, the FDIC's special assessment, write downs of OREO and non-cash changes in fair value of interest rate swaps included in its Statements of Income. Management believes presentations of financial measures excluding the impact of these items provide useful supplemental information that is important for a proper understanding of the operating results of Summit's core business. These disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies.

SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF)    
Quarterly Performance Summary --- Q4 2009 vs Q4 2008    
     
   For the Quarter Ended   Percent 
 Dollars in thousands  12/31/2009 12/31/2008  Change 
 Condensed Statements of Income       
 Interest income       
 Loans, including fees   $ 17,480  $ 19,343 -9.6%
 Securities   3,882  4,305 -9.8%
 Other   6  1 500.0%
 Total interest income   21,368  23,649 -9.6%
 Interest expense       
 Deposits   5,878  7,081 -17.0%
 Borrowings   5,286  5,190 1.8%
 Total interest expense   11,164  12,271 -9.0%
 Net interest income   10,204  11,378 -10.3%
 Provision for loan losses   6,825  750 810.0%
 Net interest income after provision for loan losses   3,379  10,628 -68.2%
 Noninterest income       
 Insurance commissions   1,164  1,200 -3.0%
 Service fee income   878  851 3.2%
 Other-than-temporary impairment of securities   (383)  (1,024) -62.6%
 Realized securities gains (losses)   773  -- n/a
 Other income   437  40 992.5%
Total noninterest income  2,869  1,067 168.9%
 Noninterest expense       
 Salaries and employee benefits  3,459  4,067 -14.9%
 Net occupancy expense  484  463 4.5%
 Equipment expense  529  567 -6.7%
 Professional fees  342  250 36.8%
 FDIC premiums  935  210 345.2%
 Other expenses  1,822  2,354 -22.6%
Total noninterest expense  7,571  7,911 -4.3%
 Income (loss) before income taxes   (1,323)  3,784 -135.0%
 Income taxes   (889)  227 -491.6%
 Net income (loss)   (434)  3,557 -112.2%
Preferred stock dividends  74  -- n/a
Net income (loss) applicable to common shares  $ (508)  $ 3,557 -114.3%
SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF)    
Quarterly Performance Summary --- Q4 2009 vs Q4 2008    
     
   For the Quarter Ended   Percent 
  12/31/2009 12/31/2008  Change 
 Per Share Data       
 Earnings per share       
 Basic   $ (0.07)  $ 0.48 -114.6%
 Diluted   $ (0.07)  $ 0.48 -114.6%
       
 Average shares outstanding       
 Basic   7,425,472  7,411,577 0.2%
 Diluted   7,425,472  7,434,643 -0.1%
       
 Performance Ratios       
 Return on average equity  -2.21% 17.08% -112.9%
 Return on average assets  -0.13% 0.89% -114.6%
 Net interest margin  2.83% 3.04% -6.9%
 Efficiency ratio - (A)  57.33% 51.14% 12.1%
NOTE: (A) – Computed on a tax equivalent basis excluding nonrecurring income and expense items and amortization of intangibles.
SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF)      
Annual Performance Summary --- 2009 vs 2008      
       
       
   For the Year Ended   Percent 
 Dollars in thousands  12/31/2009 12/31/2008  Change 
 Condensed Statements of Income       
 Interest income       
 Loans, including fees   $ 71,843  $ 77,515 -7.3%
 Securities   17,680  15,961 10.8%
 Other   13  8 62.5%
 Total interest income   89,536  93,484 -4.2%
 Interest expense       
 Deposits   24,951  27,343 -8.7%
 Borrowings   21,043  22,066 -4.6%
 Total interest expense   45,994  49,409 -6.9%
 Net interest income   43,542  44,075 -1.2%
 Provision for loan losses   20,325  15,500 31.1%
 Net interest income after provision for loan losses   23,217  28,575 -18.8%
 Noninterest income       
 Insurance commissions   5,045  5,139 -1.8%
 Service fee income   3,330  3,246 2.6%
 Net cash settlement on interest rate swaps   --  (171) 100.0%
 Change in fair value of interest rate swaps   --  705 -100.0%
 Realized securities gains (losses)   1,497  (6) n/a
 Other-than-temporary impairment of securities  (5,366)  (7,060) 24.0%
 Other income  1,294  1,014 27.6%
Total noninterest income  5,800  2,867 102.3%
 Noninterest expense       
 Salaries and employee benefits  15,908  16,762 -5.1%
 Net occupancy expense  2,032  1,870 8.7%
 Equipment expense  2,151  2,173 -1.0%
 Professional fees  1,408  723 94.7%
 FDIC premiums  3,223  744 333.2%
 Other expenses  7,176  7,161 0.2%
Total noninterest expense  31,898  29,433 8.4%
Income (loss) before income taxes   (2,881)  2,009 -243.4%
Income taxes   (2,165)  (291) -644.0%
Net income (loss)   (716)  2,300 -131.1%
Preferred stock dividends  74  -- n/a
Net income (loss) applicable to common shares  $ (790)  $ 2,300 -134.3%
SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF)    
Annual Performance Summary --- 2009 vs 2008    
     
   For the Year Ended   Percent 
  12/31/2009 12/31/2008  Change 
 Per Share Data       
 Earnings per share       
 Basic   (0.11)  0.31 -135.5%
 Diluted   (0.11)  0.31 -135.5%
       
 Average shares outstanding       
 Basic   7,421,596  7,411,715 0.1%
 Diluted   7,431,672  7,446,991 -0.2%
       
 Performance Ratios       
 Return on average equity  -0.90% 2.59% -134.7%
 Return on average assets  -0.05% 0.15% -133.3%
 Net interest margin  2.96% 3.13% -5.4%
 Efficiency ratio (A)  56.16% 51.86% 8.3%
NOTE: (A) – Computed on a tax equivalent basis excluding nonrecurring income and expense items and amortization of intangibles.
SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF)          
Five Quarter Performance Summary          
         
   For the Quarter Ended 
 Dollars in thousands  12/31/2009 9/30/2009 6/30/2009 3/31/2009 12/31/2008
 Condensed Statements of Income           
 Interest income           
 Loans, including fees   $ 17,480  $ 18,061  $ 18,050  $ 18,254  $ 19,343
 Securities   3,882  4,351  4,710  4,737  4,305
 Other   6  5  1  --  1
 Total interest income   21,368  22,417  22,761  22,991  23,649
 Interest expense           
 Deposits   5,878  6,094  6,358  6,620  7,081
 Borrowings   5,286  5,427  5,296  5,035  5,190
 Total interest expense   11,164  11,521  11,654  11,655  12,271
 Net interest income   10,204  10,896  11,107  11,336  11,378
 Provision for loan losses   6,825  4,000  5,500  4,000  750
 Net interest income after provision for loan losses   3,379  6,896  5,607  7,336  10,628
 Noninterest income           
 Insurance commissions   1,164  1,254  1,283  1,344  1,200
 Service fee income   878  859  857  736  851
 Realized securities gains (losses)   773  428  39  256  --
 Other-than-temporary impairment of securities   (383)  --  (4,768)  (215)  (1,024)
 Other income   437  291  247  319  40
Total noninterest income  2,869  2,832  (2,342)  2,440  1,067
 Noninterest expense           
 Salaries and employee benefits  3,459  3,862  4,308  4,279  4,067
 Net occupancy expense  484  484  466  597  463
 Equipment expense  529  527  527  568  567
 Professional fees  342  330  403  334  250
 FDIC premiums  935  660  1,245  383  210
 Other expenses  1,822  2,004  1,760  1,590  2,354
Total noninterest expense  7,571  7,867  8,709  7,751  7,911
 Income (loss) before income taxes   (1,323)  1,861  (5,444)  2,025  3,784
 Income taxes   (889)  458  (1,994)  260  227
 Net income (loss)   (434)  1,403  (3,450)  1,765  3,557
 Preferred stock dividends   74  --  --  --  --
Net income (loss) applicable to common shares  $ (508)  $ 1,403  $ (3,450)  $ 1,765  $ 3,557
SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF)        
Five Quarter Performance Summary          
         
   For the Quarter Ended 
  12/31/2009 9/30/2009 6/30/2009 3/31/2009 12/31/2008
 Per Share Data           
 Earnings per share           
 Basic   $ (0.07)  $ 0.19  $ (0.47)  $ 0.24  $ 0.48
 Diluted   $ (0.07)  $ 0.19  $ (0.46)  $ 0.24  $ 0.48
           
 Average shares outstanding           
 Basic   7,425,472  7,425,472  7,419,974  7,415,310  7,411,577
 Diluted   7,425,472  7,432,584  7,431,969  7,435,510  7,434,643
           
 Performance Ratios           
 Return on average equity  -2.21% 6.49% -16.13% 7.94% 17.08%
 Return on average assets  -0.13% 0.35% -0.86% 0.43% 0.89%
 Net interest margin  2.83% 2.99% 3.00% 3.04% 3.04%
 Efficiency ratio - (A)  57.33% 56.27% 56.50% 54.63% 51.14%
           
NOTE: (A) – Computed on a tax equivalent basis excluding nonrecurring income and expense items and amortization of intangibles.
SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF)          
Selected Balance Sheet Data          
   For the Quarter Ended 
 Dollars in thousands, except per share amounts  12/31/2009 9/30/2009 6/30/2009 3/31/2009 12/31/2008
 Assets   $ 1,584,625  $ 1,577,793  $ 1,583,910  $ 1,598,968  $ 1,627,116
 Securities   271,654  285,156  289,267  295,706  350,622
 Loans, net   1,137,336  1,156,432  1,165,653  1,186,042  1,192,157
 Intangible assets   9,353  9,441  9,529  9,617  9,704
 Retail deposits   775,524  702,785  705,953  699,065  669,261
 Brokered time deposits   241,814  267,237  248,271  256,293  296,589
 Short-term borrowings   49,740  73,733  104,718  120,480  153,100
 Long-term borrowings and subordinated debentures  417,882  433,037  432,391  430,687  412,337
 Shareholders' equity   90,660  91,937  83,753  83,604  87,244
           
Book value per common share (A)  $ 11.19  $ 11.35  $ 11.28  $ 11.27  $ 11.77
Tangible book value per common share (A)  $ 10.04  $ 10.18  $ 10.00  $ 9.98  $ 10.46
Tangible equity / Tangible assets 5.2% 5.3% 4.7% 4.7% 4.8%
Tier 1 leverage ratio 6.4% 6.5% 6.1% 6.2% 6.2%
           
NOTE: (A) – Assumes conversion of convertible preferred stock        
SUMMIT FINANCIAL GROUP INC. (NASDAQ: SMMF)        
Loan Composition          
           
Dollars in thousands 12/31/2009 9/30/2009 6/30/2009 3/31/2009 12/31/2008
Commercial  $ 122,508  $ 125,743  $ 126,661  $ 128,707  $ 130,106
Commercial real estate  465,037  457,669  459,671  452,987  452,264
Construction and development  162,080  176,783  183,733  211,849  215,465
Residential real estate  372,867  376,440  376,019  380,351  376,026
Consumer  28,203  29,555  30,179  30,201  31,519
Other  5,652  6,087  5,760  6,133  6,061
Total loans  1,156,347  1,172,277  1,182,023  1,210,228  1,211,441
Less unearned fees and interest  2,011  1,997  2,065  2,190  2,351
Total loans net of unearned fees and interest  1,154,336  1,170,280  1,179,958  1,208,038  1,209,090
Less allowance for loan losses  17,000  13,848  14,305  21,996  16,933
Loans, net  $ 1,137,336  $ 1,156,432  $ 1,165,653  $ 1,186,042  $ 1,192,157
SUMMIT FINANCIAL GROUP INC. (NASDAQ: SMMF)      
Retail Deposit Composition          
           
Dollars in thousands 12/31/2009 9/30/2009 6/30/2009 3/31/2009 12/31/2008
Non interest bearing checking  $ 74,119  $ 68,929  $ 69,878  $ 70,483  $ 69,808
Interest bearing checking  148,587  154,683  152,498  155,157  156,990
Savings  188,419  115,767  105,828  94,294  61,688
Time deposits  364,399  363,406  377,749  379,131  380,775
Total retail deposits  $ 775,524  $ 702,785  $ 705,953  $ 699,065  $ 669,261
SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF)          
Asset Quality Information          
   For the Quarter Ended 
 Dollars in thousands  12/31/2009 9/30/2009 6/30/2009 3/31/2009 12/31/2008
           
Gross loan charge-offs  $ 3,864  $ 4,586  $ 13,288  $ 522  $ 5,351
Gross loan recoveries  (192)  (127)  (98)  (1,585)  (102)
Net loan charge-offs  $ 3,672  $ 4,459  $ 13,190  $ (1,063)  $ 5,249
           
Net loan charge-offs to average loans (annualized) 1.25% 1.51% 4.37% -0.35% 1.75%
Allowance for loan losses  $ 17,000  $ 13,848  $ 14,305  $ 21,996  $ 16,933
Allowance for loan losses as a percentage of period end loans 1.47% 1.18% 1.21% 1.82% 1.40%
Nonperforming assets:          
 Nonperforming loans          
 Commercial  $ 431  $ 431  $ 680  $ 637  $ 199
 Commercial real estate  35,217  22,684  23,287  25,788  24,323
 Construction and development  26,328  27,084  29,508  45,194  18,382
 Residential real estate  4,563  8,578  8,116  7,933  4,986
 Consumer  403  75  107  31  79
Total nonperforming loans  66,942  58,852  61,698  79,583  47,969
 Foreclosed properties          
 Commercial real estate  4,788  4,873  4,561  961  875
 Construction and development  32,258  25,278  14,904  6,726  6,755
 Residential real estate  3,247  1,042  970  120  480
Total foreclosed properties  40,293  31,193  20,435  7,807  8,110
Other repossessed assets  269  1  11  17  3
Total nonperforming assets  $ 107,504  $ 90,046  $ 82,144  $ 87,407  $ 56,082
           
Nonperforming loans to period end loans 5.79% 5.02% 5.22% 6.58% 3.97%
Nonperforming assets to period end assets 6.78% 5.71% 5.19% 5.47% 3.45%
SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF)          
Average Balance Sheet, Interest Earnings & Expenses and Average Rates      
Q4 2009 vs Q4 2008            
             
  Q4 2009 Q4 2008
  Average Earnings / Yield / Average Earnings / Yield /
Dollars in thousands Balances Expense Rate Balances Expense Rate
             
ASSETS            
Interest earning assets            
Loans, net of unearned interest            
Taxable  $ 1,163,441  $ 17,372 5.92%  $ 1,188,368  $ 19,232 6.44%
Tax-exempt  7,845  164 8.29%  8,174  168 8.18%
Securities            
Taxable  254,792  3,372 5.25%  287,789  3,786 5.23%
Tax-exempt  46,003  768 6.62%  47,062  786 6.64%
Interest bearing deposits other banks            
and Federal funds sold  2,264  6 1.05%  305  1 1.30%
Total interest earning assets  1,474,345  21,682 5.83%  1,531,698  23,973 6.23%
             
Noninterest earning assets            
Cash & due from banks  30,665      20,799    
Premises & equipment  24,241      22,441    
Other assets  76,279      45,152    
Allowance for loan losses  (15,076)      (21,191)    
Total assets  $ 1,590,454      $ 1,598,899    
             
LIABILITIES AND SHAREHOLDERS' EQUITY          
             
Liabilities            
Interest bearing liabilities            
Interest bearing             
demand deposits  $ 152,119  $ 198 0.52%  $ 165,705  $ 283 0.68%
Savings deposits  162,270  601 1.47%  58,444  240 1.63%
Time deposits  622,363  5,093 3.25%  663,789  6,558 3.93%
Short-term borrowings  56,768  86 0.60%  118,801  231 0.77%
Long-term borrowings and            
subordinated debentures  425,129  5,186 4.84%  422,996  4,959 4.66%
   1,418,649  11,164 3.12%  1,429,735  12,271 3.41%
Noninterest bearing liabilities            
Demand deposits  71,050      78,180    
Other liabilities  8,889      7,675    
Total liabilities  1,498,588      1,515,590    
             
Shareholders' equity  91,866      83,309    
Total liabilities and            
shareholders' equity  $ 1,590,454      $ 1,598,899    
             
NET INTEREST EARNINGS    $ 10,518      $ 11,702  
             
NET INTEREST YIELD ON EARNING ASSETS   2.83%     3.04%
             
SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF)        
Average Balance Sheet, Interest Earnings & Expenses and Average Rates    
YTD 2009 vs YTD 2008            
             
  For the Years Ended December 31,
  2009 2008
  Average Earnings / Yield / Average Earnings / Yield /
Dollars in thousands Balances Expense Rate Balances Expense Rate
             
ASSETS            
Interest earning assets            
Loans, net of unearned interest            
Taxable  $ 1,184,571  $ 71,405 6.03%  $ 1,127,808  $ 77,055 6.83%
Tax-exempt  8,045  665 8.27%  8,528  697 8.17%
Securities            
Taxable  271,820  15,602 5.74%  264,667  13,707 5.18%
Tax-exempt  46,740  3,150 6.74%  49,953  3,380 6.77%
Interest bearing deposits other            
banks and Federal funds sold  1,335  13 0.97%  370  8 2.16%
Total interest earning assets  1,512,511  90,835 6.01%  1,451,326  94,847 6.54%
             
Noninterest earning assets            
Cash & due from banks  18,282      18,792    
Premises & equipment  23,646      22,154    
Other assets  60,656      38,760    
Allowance for loan losses  (18,293)      (12,980)    
Total assets  $ 1,596,802      $ 1,518,052    
             
LIABILITIES AND SHAREHOLDERS' EQUITY          
             
Liabilities            
Interest bearing liabilities            
Interest bearing             
demand deposits  $ 154,233  $ 784 0.51%  $ 190,066  $ 2,416 1.27%
Savings deposits  112,712  1,774 1.57%  55,554  908 1.63%
Time deposits  632,988  22,407 3.54%  568,491  24,019 4.23%
Short-term borrowings  99,497  573 0.58%  112,383  2,392 2.13%
Long-term borrowings and            
subordinated debentures  429,481  20,457 4.76%  419,454  19,674 4.69%
   1,428,911  45,995 3.22%  1,345,948  49,409 3.67%
Noninterest bearing liabilities            
Demand deposits  71,281      75,165    
Other liabilities  8,666      7,976    
Total liabilities  1,508,858      1,429,089    
             
Shareholders' equity  87,944      88,963    
Total liabilities and            
shareholders' equity  $ 1,596,802      $ 1,518,052    
             
NET INTEREST EARNINGS    $ 44,840      $ 45,438  
             
NET INTEREST YIELD ON EARNING ASSETS   2.96%     3.13%
             
SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF)        
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures    
         
   For the Quarter Ended   For the Years Ended 
 Dollars in thousands  12/31/2009 12/31/2008 12/31/2009 12/31/2008
         
 Operating income (loss) applicable to common shares   $ (754)  $ 4,325  $ 2,111  $ 6,431
         
 Realized securities gains/(losses)   773  --  1,497  (6)
 Applicable income tax effect   (286)  --  (554)  2
 Other-than-temporary impairment of securities   (383)  (1,024)  (5,366)  (7,060)
 Applicable income tax effect   142  379  1,985  2,612
 Write down of OREO   --  (196)  --  (196)
 Applicable income tax effect   --  73  --  73
 FDIC special assessment   --  --  (735)  --
 Applicable income tax effect   --  --  272  --
 Change in fair value of interest rate swaps   --  --  --  705
 Applicable income tax effect   --  --  --  (261)
   246  (768)  (2,901)  (4,131)
 GAAP net income (loss) applicable to common shares   $ (508)  $ 3,557  $ (790)  $ 2,300
         
         
Diluted earnings per share - excluding realized securities gains/(losses),  other-than-temporary impairment of securities, FDIC special assessment, change in fair value of interest swaps and  write down of OREO   $ (0.10)  $ 0.59  $ 0.27  $ 0.87
         
 Realized securities gains/(losses)   0.10  --   0.20  -- 
 Applicable income tax effect   (0.04)  --   (0.07)  -- 
 Other-than-temporary impairment of securities   (0.05)  (0.14)  (0.71)  (0.95)
 Applicable income tax effect   0.02  0.05  0.26  0.35
 Write down of OREO     (0.03)    (0.03)
 Applicable income tax effect   --   0.01  --   0.01
 FDIC special assessment   --   --   (0.10)  -- 
 Applicable income tax effect   --   --   0.04  -- 
 Change in fair value of interest rate swaps   --   --   --   0.09
 Applicable income tax effect   --   --   --   (0.03)
   0.03  (0.11)  (0.38)  (0.56)
 GAAP diluted earnings per share   $ (0.07)  $ 0.48  $ (0.11)  $ 0.31
         
SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF)        
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures (con't)  
         
   For the Quarter Ended   For the Years Ended 
 Dollars in thousands  12/31/2009 12/31/2008 12/31/2009 12/31/2008
         
 Total revenue - excluding realized securities gains/(losses), other-than-temporary impairment of securities and change in fair value of interest rate swaps   $ 12,683  $ 13,665  $ 53,211  $ 53,500
         
 Realized securities gains/(losses)   773  --  1,497  (6)
 Other-than-temporary impairment of securities   (383)  (1,024)  (5,366)  (7,060)
 Write down of OREO   --  (196)  --  (196)
 Change in fair value of interest rate swaps   --  --  --  705
   390  (1,220)  (3,869)  (6,557)
 GAAP total revenue   $ 13,073  $ 12,445  $ 49,342  $ 46,943
         
         
Total noninterest income - excluding realized securities gains/(losses), other-than-temporary impairment of securities and change in fair value of interest rate swaps   $ 2,479  $ 2,287  $ 9,669  $ 9,425
         
 Realized securities gains/(losses)   773  --  1,497  (6)
 Other-than-temporary impairment of securities   (383)  (1,024)  (5,366)  (7,060)
 Write down of OREO property   --  (196)  --  (196)
 Change in fair value of interest rate swaps   --  --  --  705
   390  (1,220)  (3,869)  (6,557)
 GAAP total noninterest income   $ 2,869  $ 1,067  $ 5,800  $ 2,868
         
CONTACT:  Summit Financial Group, Inc.
          Robert S. Tissue, Sr. Vice President & CFO
          (304) 530-0552
          rtissue@SummitFGI.com

company logo

Back to SMMF
Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki