Attached files
| file | filename |
|---|---|
| 8-K - 8-K - SUMMIT FINANCIAL GROUP, INC. | smmf-20210201.htm |
EXHIBIT 99
FOR RELEASE 6:00 AM ET, February 1, 2021
Contact: Robert S. Tissue, Executive Vice President & CFO
Telephone: (304) 530-0552
Email: rtissue@summitfgi.com
SUMMIT FINANCIAL GROUP REPORTS RECORD QUARTERLY EPS AND NET INCOME
Q4 2020 Diluted EPS $0.79 compared to $0.74 for Q3 2020 and $0.65 for Q4 2019
MOOREFIELD, WV – February 1, 2021 (GLOBE NEWSWIRE) – Summit Financial Group, Inc. (“Company” or “Summit”) (NASDAQ: SMMF) today reported fourth quarter 2020 net income of $10.3 million, or $0.79 per diluted share, both representing a quarterly record. In comparison, earnings for third quarter 2020 were $9.62 million, or $0.74 per diluted share, and for fourth quarter 2019 were $8.15 million, or $0.65 per diluted share.
For the full year 2020, Summit recorded net income of $31.3 million, or $2.41 per diluted share, compared with $31.9 million, or $2.53 per diluted share, for 2019, representing a decrease of 1.7 percent or 4.7 percent per diluted share. The principal factor negatively impacting our earnings this past year was the $13.0 million increase in our provision for credit losses ($9.84 million after taxes, or $0.76 per diluted share) compared to 2019. Recently adopted loan loss accounting rules now require us to record all estimated future losses in our loan portfolio, and this contributed significantly to our credit loss provision for 2020 as we recorded our estimate of loan losses expected to result from the COVID-19 pandemic.
Summit completed its acquisition of WinFirst Financial Corp. (“WFC”) and its subsidiary, WinFirst Bank, headquartered in Winchester, Kentucky on December 14, 2020; accordingly, WFC’s results of operations are included in Summit’s consolidated results of operations from the date of acquisition. At consummation, WFC had total assets of $143.4 million, loans of $123.8 million, and deposits of $103.6 million.
H. Charles Maddy, III, President and Chief Executive Officer commented, “I am very pleased to report Summit concluded a challenging year by achieving both record quarterly earnings and net revenues in fourth quarter of 2020. I am particularly gratified by our continued strong core operating performance, highlighted by strong growth in net interest income, all while maintaining a stable net interest margin and well-controlled noninterest expenses. These results validate not only our core growth strategies, but our ability to remain disciplined in trying times. This is also a tribute to our management and employees who have worked tirelessly the past year to put forth consistent, high levels of client service despite the many challenges. Looking ahead, I am inspired by our gaining momentum towards the goal to be a consistently growing, high-performing community banking institution. We are both fundamentally and financially strong as we face the challenges of 2021 and beyond.”
Highlights for Q4 2020
•Net interest income increased 23.3 percent (annualized) compared to Q3 2020 and increased 32.2 percent year over year, primarily due to loan growth and lower funding costs.
•Net interest margin in Q4 2020 increased 12 basis points to 3.76 percent as compared to the linked quarter, as yield on interest earning assets increased 4 basis points while the cost of deposits and other funding declined 11 basis points, as well as our diligence and disciplined approach toward asset/liability management.
•Excluding mortgage warehouse lines of credit and acquired WFC loans, loan balances increased $29.8 million during the quarter, despite PPP loan pay downs totaling $22.6 million in Q4 2020.
•Recorded provision for credit losses of $3.00 million (of which $2.0 million is attributable to acquired WFC loans) in Q4 2020 compared to $3.25 million in Q3 2020 and $500,000 in Q4 2019; our increased credit provisions in 2020 are principally due to the estimated potential future economic impact of the COVID-19 crisis.
•Efficiency ratio was 49.38 percent compared to 48.95 percent in the linked quarter and 52.25 percent for Q4 2019.
•Net foreclosed properties expenses increased to $676,000 in Q4 2020 compared to $607,000 in Q3 2020 as net losses on sales of foreclosed properties in Q4 2020 totaled $489,000 compared to $44,000 net gains in Q3 2020 and write downs of foreclosed properties to estimated fair values totaled $64,000 in Q4 2020 compared to $555,000 in Q3 2020. During Q4 2019, such write downs totaled $497,000 and realized net gains were $312,000.
•Realized $912,000 securities gains in Q4 2020 compared to $1.52 million in the linked quarter and $403,000 in Q4 2019.
•Nonperforming assets as a percentage of total assets increased to 1.16 percent compared to 0.94 percent for the linked quarter and 1.28 percent at year end 2019.
•Completed acquisition of WinFirst Financial Corp. (“WFC”) and its wholly-owned subsidiary, WinFirst Bank, headquartered in Winchester, Kentucky.
Merger & Acquisition Activity
On December 14, 2020, Summit’s bank subsidiary, Summit Community Bank completed its acquisition of WinFirst Corp. and its subsidiary WinFirst Bank, headquartered in Winchester, Kentucky. At consummation, WinFirst had total assets of $143.4 million, loans of $123.8 million and deposits of $103.6 million.
Further, on April 24, 2020, Summit Community Bank completed its acquisition of four branch banking offices located in the Eastern Panhandle of West Virginia from MVB Bank, Inc., a bank subsidiary of MVB Financial Corp. Summit assumed approximately $195.0 million in deposits and acquired approximately $35.3 million in loans in conjunction with this purchase. Also, Summit completed its acquisition of Cornerstone Financial Services, Inc. (“Cornerstone”) and its subsidiary, Cornerstone Bank, headquartered in West Union, West Virginia on January 1, 2020.
At consummation, Cornerstone had total assets of $195.0 million, loans of $39.8 million, and deposits of $173.0 million.
Accordingly, the results of operations of WinFirst, Cornerstone and acquired MVB Bank branches are included in Summit’s consolidated results of operations from the dates of acquisition, and therefore Summit’s 2020 results reflect increased levels of average balances, income and expenses compared to comparable prior year periods.
Results from Operations
Total revenue for fourth quarter 2020, consisting of net interest income and noninterest income, increased 32.0 percent to $32.0 million, which included $912,000 in realized securities gains, compared to $24.2 million for fourth quarter 2019. For full year 2020, total revenue was $115.6 million compared to $96.3 million for 2019, representing a 20.0 percent increase primarily as result of higher net interest income.
For the fourth quarter of 2020, net interest income was $26.2 million, an increase of 32.2 percent from the $19.8 million reported in the prior-year fourth quarter and a 5.8 percent increase compared to the linked quarter. The net interest margin for fourth quarter 2020 was 3.76 percent compared to 3.64 percent for the linked quarter and 3.63 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 3.70 percent for Q4 2020, 3.59 percent for Q3 2020 and 3.60 percent for Q4 2019.
Noninterest income, consisting primarily of service fee income from community banking activities and trust and wealth management fees, for fourth quarter 2020 was $5.78 million compared to $6.21 million for the linked quarter and $4.40 million for the comparable period of 2019, which included realized securities gains of $912,000 in Q4 2020, $1.52 million in the linked quarter and $403,000 in Q4 2019. Excluding realized securities gains, noninterest income was $4.87 million for fourth quarter 2020 and $4.00 million for fourth quarter 2019. Mortgage origination revenue increased to $1.16 million for Q4 2020 compared to $379,000 in Q4 2019 due to higher volumes of secondary market loans driven primarily by historically low interest rates. Also included in Q3 2020 noninterest income is one-time income approximating $475,000 earned in conjunction with the recent investment in $9.3 million of annuities.
We recorded a $3.0 million provision for credit losses during fourth quarter 2020 compared to $3.25 million for the linked quarter and $500,000 in Q4 2019. As result of the adoption of CECL, the provision for credit losses now represents an estimate of the full amount of expected credit losses relative to loans, whereas under the pre-CECL incurred loss accounting method, the provision was only an estimate of probable existing loan losses.
Q4 2020 total noninterest expense increased 26.2 percent to $16.6 million compared to $13.2 million for the prior-year fourth quarter. This year-over-year increase resulted primarily due to the acquisition of Cornerstone and MVB Bank branches during early 2020. Additionally, other significant factors contributing to the changes in total noninterest expense period over period are as follows: higher FDIC premiums, as we fully utilized in prior periods our FDIC’s Small Bank Assessment Credits, decreased write downs of foreclosed properties to estimated fair values totaling $64,000 in Q4 2020 compared to $555,000 in Q3 2020 and $497,000 in Q4 2019, net losses on sales of foreclosed properties in Q4 2020 of $489,000 compared to net gains during Q3 2020 of $44,000 and Q4 2019 of $312,000 and deferred director compensation expense totaling $612,000 in Q4 2020, compared to $325,000 in Q3 2020 and $281,000 in Q4 2019.
Balance Sheet
At December 31, 2020, total assets were $3.11 billion, an increase of $702.9 million, or 29.2 percent since December 31, 2019. Total loans, net of unearned fees and allowance for loan losses, were $2.38 billion at December 31, 2020, up $479.5 million, or 25.2 percent, from the $1.90 billion reported at year-end 2019. Loans, excluding mortgage warehouse lines of credit and acquired WFC loans, increased $29.8 million during the quarter, or 5.9 percent (annualized). Loans, excluding mortgage warehouse lines of credit, PPP loans and acquired Cornerstone, MVB and WFC loans, have increased $100.4 million, or 5.6 percent since year-end 2019.
At December 31, 2020, core deposits were $2.46 billion, an increase of $774.5 million, or 46.0 percent, since year end 2019. During 2020, checking deposits increased $484.1 million or 54.3 percent, core time deposits grew by $87.3 million or 23.4 percent and savings deposits increased $203.1 million or 48.6 percent. Excluding acquired deposits (of Cornerstone, MVB branches and WFC), core deposits have increased $302.9 million, or 18.0 percent, since year end 2019.
Shareholders’ equity was $281.6 million as of December 31, 2020 compared to $247.8 million at December 31, 2019. In conjunction with the acquisition of Cornerstone on January 1, 2020, Summit issued 570,000 shares of common stock valued at $15.4 million to the former Cornerstone shareholders.
Tangible book value per common share increased to $17.50 as of December 31, 2020 compared to $17.31 at September 30, 2020, although it decreased from $18.11 at December 31, 2019 as result of the somewhat dilutive impacts of the Cornerstone, MVB Branches and WinFirst acquisitions. Summit had 12,942,004 outstanding common shares at Q4 2020 quarter end compared to 12,408,542 at year end 2019.
As announced in Q1 2020, the Board of Directors authorized the open market repurchase of up to 750,000 shares of the issued and outstanding shares of Summit's common stock. The timing and quantity of stock purchases under this repurchase plan are at the discretion of management. During Q4 2020, no shares of our common stock were repurchased under the Plan.
Asset Quality
We incurred net loan charge-offs of $239,000 in fourth quarter 2020 (0.04 percent of average loans annualized), compared to third quarter 2020 net loan charge-offs of $1.01 million, which included an $880,000 charge-off of a commercial real estate relationship which had previously been fully reserved and exhibited weakness prior to the COVID-19 pandemic while $2.34 million and $3.20 million were added to the allowance for loan credit losses through the provision for credit losses during Q4 2020 and Q3 2020, respectively. The allowance for loan credit losses stood at 1.34 percent of total loans as of December 31, 2020, compared to 0.68 percent at year-end 2019.
Similarly, during Q4 2020 and Q3 2020, we also added $665,000 and $48,000, respectively, to the allowance for credit losses on unfunded loan commitments through the provision for credit losses.
As of December 31, 2020, nonperforming assets (“NPAs”), consisting of nonperforming loans, foreclosed properties and repossessed assets, totaled $35.9 million, or 1.16 percent of assets primarily due to a loan relationship detrimentally impacted by the COVID-19 pandemic totaling $9.68 million that was placed on nonaccrual status. This compares to NPAs of $27.8 million, or
0.94 percent of assets at the linked quarter-end and $30.8 million, or 1.28 percent of assets at the end of 2019.
The following tables summarize the aggregate balances of loans the Company has modified as result of the COVID-19 pandemic as of December 31, 2020 and September 30, 2020 classified by types of loans and impacted borrowers.
| Loan Balances Modified Due to COVID-19 as of 12/31/20 | ||||||||||||||||||||
| Dollars in thousands | Total Loan Balance as of 12/31/20 | Loans Modified to Interest Only Payments | Loans Modified to Payment Deferral | Total Loans Modified | Percentage of Loans Modified | |||||||||||||||
| Hospitality Industry | $ | 121,502 | $ | 40,513 | $ | 12,930 | $ | 53,443 | 44.0 | % | ||||||||||
| Non-Owner Occupied Retail Stores | 135,405 | 7,223 | 447 | 7,670 | 5.7 | % | ||||||||||||||
| Owner-Occupied Retail Stores | 126,451 | 2,317 | 1,246 | 3,563 | 2.8 | % | ||||||||||||||
| Restaurants | 7,481 | — | — | — | — | % | ||||||||||||||
| Oil & Gas Industry | 17,152 | — | — | — | — | % | ||||||||||||||
| Other Commercial Loans | 1,134,759 | 12,006 | 286 | 12,292 | 1.1 | % | ||||||||||||||
| Total Commercial Loans | 1,542,750 | 62,059 | 14,909 | 76,968 | 5.0 | % | ||||||||||||||
| Residential 1-4 Family Personal | 305,093 | 159 | 1,754 | 1,913 | 0.6 | % | ||||||||||||||
| Residential 1-4 Family Rentals | 194,612 | 148 | 73 | 221 | 0.1 | % | ||||||||||||||
| Home Equity Loans | 81,588 | — | — | — | — | % | ||||||||||||||
| Total Residential Real Estate Loans | 581,293 | 307 | 1,827 | 2,134 | 0.4 | % | ||||||||||||||
| Consumer Loans | 33,906 | 48 | 143 | 191 | 0.6 | % | ||||||||||||||
| Mortgage Warehouse Loans | 251,810 | — | — | — | — | % | ||||||||||||||
| Credit Cards and Overdrafts | 2,394 | — | — | — | — | % | ||||||||||||||
| Total Loans | $ | 2,412,153 | $ | 62,414 | $ | 16,879 | $ | 79,293 | 3.3 | % | ||||||||||
| Loan Balances Modified Due to COVID-19 as of 9/30/20 | ||||||||||||||||||||
| Dollars in thousands | Total Loan Balance as of 9/30/20 | Loans Modified to Interest Only Payments | Loans Modified to Payment Deferral | Total Loans Modified | Percentage of Loans Modified | |||||||||||||||
| Hospitality Industry | $ | 120,324 | $ | 36,803 | $ | 11,466 | $ | 48,269 | 40.1 | % | ||||||||||
| Non-Owner Occupied Retail Stores | 108,326 | 19,497 | — | 19,497 | 18.0 | % | ||||||||||||||
| Owner-Occupied Retail Stores | 100,926 | 1,601 | 1,409 | 3,010 | 3.0 | % | ||||||||||||||
| Restaurants | 7,968 | — | — | — | — | % | ||||||||||||||
| Oil & Gas Industry | 24,404 | 914 | — | 914 | 3.7 | % | ||||||||||||||
| Other Commercial Loans | 1,084,385 | 40,846 | — | 40,846 | 3.8 | % | ||||||||||||||
| Total Commercial Loans | 1,446,333 | 99,661 | 12,875 | 112,536 | 7.8 | % | ||||||||||||||
| Residential 1-4 Family Personal | 263,315 | 195 | 991 | 1,186 | 0.5 | % | ||||||||||||||
| Residential 1-4 Family Rentals | 178,529 | 3,567 | 336 | 3,903 | 2.2 | % | ||||||||||||||
| Home Equity Loans | 82,991 | — | — | — | — | % | ||||||||||||||
| Total Residential Real Estate Loans | 524,835 | 3,762 | 1,327 | 5,089 | 1.0 | % | ||||||||||||||
| Consumer Loans | 34,655 | 34 | 22 | 56 | 0.2 | % | ||||||||||||||
| Mortgage Warehouse Loans | 243,730 | — | — | — | — | % | ||||||||||||||
| Credit Cards and Overdrafts | 2,251 | — | — | — | — | % | ||||||||||||||
| Total Loans | $ | 2,251,804 | $ | 103,457 | $ | 14,224 | $ | 117,681 | 5.2 | % | ||||||||||
About the Company
Summit Financial Group, Inc. is a $3.11 billion financial holding company headquartered in Moorefield, West Virginia. Summit provides community banking services primarily in the Eastern Panhandle, Southern and North Central regions of West Virginia, the Northern, Shenandoah Valley and Southwestern regions of Virginia and the central region of Kentucky, through its bank subsidiary, Summit Community Bank, Inc., which operates 43 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: the effect of the COVID-19 pandemic, including the negative impacts and disruptions on the communities we serve, and the domestic and global economy, which may have an adverse effect on our business; current and future economic and market conditions, including the effects of declines in housing prices, high unemployment rates, U.S. fiscal debt, budget and tax matters, geopolitical matters, and any slowdown in global economic growth; fiscal and monetary policies of the Federal Reserve; future provisions for credit losses on loans and debt securities; changes in nonperforming assets; changes in interest rates and interest rate relationships; demand for products and services; the degree of competition by traditional and non-traditional competitors; the successful integration of operations of our acquisitions; 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.
| SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF) | |||||||||||||||||
| Quarterly Performance Summary (unaudited) -- Q4 2020 vs Q4 2019 | |||||||||||||||||
| For the Quarter Ended | Percent | ||||||||||||||||
| Dollars in thousands | 12/31/2020 | 12/31/2019 | Change | ||||||||||||||
| Statements of Income | |||||||||||||||||
| Interest income | |||||||||||||||||
| Loans, including fees | $ | 27,897 | $ | 24,772 | 12.6 | % | |||||||||||
| Securities | 2,228 | 2,195 | 1.5 | % | |||||||||||||
| Other | 51 | 105 | -51.4 | % | |||||||||||||
| Total interest income | 30,176 | 27,072 | 11.5 | % | |||||||||||||
| Interest expense | |||||||||||||||||
| Deposits | 2,956 | 5,952 | -50.3 | % | |||||||||||||
| Borrowings | 1,014 | 1,292 | -21.5 | % | |||||||||||||
| Total interest expense | 3,970 | 7,244 | -45.2 | % | |||||||||||||
| Net interest income | 26,206 | 19,828 | 32.2 | % | |||||||||||||
| Provision for credit losses | 3,000 | 500 | n/m | ||||||||||||||
| Net interest income after provision for credit losses | 23,206 | 19,328 | 20.1 | % | |||||||||||||
| Noninterest income | |||||||||||||||||
| Insurance commissions | 127 | 90 | 41.1 | % | |||||||||||||
| Trust and wealth management fees | 626 | 734 | -14.7 | % | |||||||||||||
| Mortgage origination revenue | 1,163 | 379 | 206.9 | % | |||||||||||||
| Service charges on deposit accounts | 1,305 | 1,377 | -5.2 | % | |||||||||||||
| Bank card revenue | 1,237 | 906 | 36.5 | % | |||||||||||||
| Realized securities gains | 912 | 403 | 126.3 | % | |||||||||||||
| Bank owned life insurance and annuity income | 233 | 310 | -24.8 | % | |||||||||||||
| Other income | 174 | 205 | -15.1 | % | |||||||||||||
| Total noninterest income | 5,777 | 4,404 | 31.2 | % | |||||||||||||
| Noninterest expense | |||||||||||||||||
| Salaries and employee benefits | 8,501 | 7,099 | 19.7 | % | |||||||||||||
| Net occupancy expense | 1,046 | 815 | 28.3 | % | |||||||||||||
| Equipment expense | 1,502 | 1,278 | 17.5 | % | |||||||||||||
| Professional fees | 370 | 412 | -10.2 | % | |||||||||||||
| Advertising and public relations | 207 | 214 | -3.3 | % | |||||||||||||
| Amortization of intangibles | 409 | 401 | 2.0 | % | |||||||||||||
| FDIC premiums | 261 | — | n/a | ||||||||||||||
| Bank card expense | 573 | 454 | 26.2 | % | |||||||||||||
| Foreclosed properties expense, net | 676 | 262 | 158.0 | % | |||||||||||||
| Merger-related expenses | 218 | 98 | 122.4 | % | |||||||||||||
| Other expenses | 2,843 | 2,126 | 33.7 | % | |||||||||||||
| Total noninterest expense | 16,606 | 13,159 | 26.2 | % | |||||||||||||
| Income before income taxes | 12,377 | 10,573 | 17.1 | % | |||||||||||||
| Income tax expense | 2,126 | 2,424 | -12.3 | % | |||||||||||||
| Net income | $ | 10,251 | $ | 8,149 | 25.8 | % | |||||||||||
| SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF) | |||||||||||||||||
| Quarterly Performance Summary (unaudited) -- Q4 2020 vs Q4 2019 | |||||||||||||||||
| For the Quarter Ended | Percent | ||||||||||||||||
| 12/31/2020 | 12/31/2019 | Change | |||||||||||||||
| Per Share Data | |||||||||||||||||
| Earnings per common share | |||||||||||||||||
| Basic | $ | 0.79 | $ | 0.66 | 19.7 | % | |||||||||||
| Diluted | $ | 0.79 | $ | 0.65 | 21.5 | % | |||||||||||
| Cash dividends | $ | 0.17 | $ | 0.15 | 13.3 | % | |||||||||||
| Dividend payout ratio | 21.5 | % | 22.3 | % | -3.6 | % | |||||||||||
| Average common shares outstanding | |||||||||||||||||
| Basic | 12,932,768 | 12,400,932 | 4.3 | % | |||||||||||||
| Diluted | 12,980,041 | 12,458,702 | 4.2 | % | |||||||||||||
| Common shares outstanding at period end | 12,942,004 | 12,408,542 | 4.3 | % | |||||||||||||
| Performance Ratios | |||||||||||||||||
| Return on average equity | 14.90 | % | 13.32 | % | 11.9 | % | |||||||||||
| Return on average tangible equity | 18.70 | % | 15.25 | % | 22.6 | % | |||||||||||
| Return on average assets | 1.37 | % | 1.39 | % | -1.4 | % | |||||||||||
| Net interest margin (A) | 3.76 | % | 3.63 | % | 3.6 | % | |||||||||||
| Efficiency ratio (B) | 49.38 | % | 52.25 | % | -5.5 | % | |||||||||||
| 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) | |||||||||||||||||
| Annual Performance Summary (unaudited) -- 2020 vs 2019 | |||||||||||||||||
| For the Year Ended | Percent | ||||||||||||||||
| Dollars in thousands | 12/31/2020 | 12/31/2019 | Change | ||||||||||||||
| Statements of Income | |||||||||||||||||
| Interest income | |||||||||||||||||
| Loans, including fees | $ | 105,564 | $ | 97,115 | 8.7 | % | |||||||||||
| Securities | 9,173 | 9,361 | -2.0 | % | |||||||||||||
| Other | 266 | 595 | -55.3 | % | |||||||||||||
| Total interest income | 115,003 | 107,071 | 7.4 | % | |||||||||||||
| Interest expense | |||||||||||||||||
| Deposits | 16,044 | 23,697 | -32.3 | % | |||||||||||||
| Borrowings | 3,477 | 6,290 | -44.7 | % | |||||||||||||
| Total interest expense | 19,521 | 29,987 | -34.9 | % | |||||||||||||
| Net interest income | 95,482 | 77,084 | 23.9 | % | |||||||||||||
| Provision for credit losses | 14,500 | 1,550 | n/m | ||||||||||||||
| Net interest income after provision for credit losses | 80,982 | 75,534 | 7.2 | % | |||||||||||||
| Noninterest income | |||||||||||||||||
| Insurance commissions | 202 | 1,911 | -89.4 | % | |||||||||||||
| Trust and wealth management fees | 2,495 | 2,564 | -2.7 | % | |||||||||||||
| Mortgage origination revenue | 2,799 | 770 | 263.5 | % | |||||||||||||
| Service charges on deposit accounts | 4,588 | 5,094 | -9.9 | % | |||||||||||||
| Bank card revenue | 4,494 | 3,536 | 27.1 | % | |||||||||||||
| Realized securities gains | 3,472 | 1,938 | 79.2 | % | |||||||||||||
| Gain on sale Summit Insurance Services, LLC | — | 1,906 | n/a | ||||||||||||||
| Bank owned life insurance income and annuity income | 1,567 | 1,044 | 50.1 | % | |||||||||||||
| Other income | 466 | 440 | 5.9 | % | |||||||||||||
| Total noninterest income | 20,083 | 19,203 | 4.6 | % | |||||||||||||
| Noninterest expense | |||||||||||||||||
| Salaries and employee benefits | 32,211 | 29,066 | 10.8 | % | |||||||||||||
| Net occupancy expense | 3,963 | 3,417 | 16.0 | % | |||||||||||||
| Equipment expense | 5,765 | 4,972 | 15.9 | % | |||||||||||||
| Professional fees | 1,538 | 1,678 | -8.3 | % | |||||||||||||
| Advertising and public relations | 596 | 698 | -14.6 | % | |||||||||||||
| Amortization of intangibles | 1,659 | 1,701 | -2.5 | % | |||||||||||||
| FDIC premiums | 856 | 88 | 872.7 | % | |||||||||||||
| Bank card expense | 2,225 | 1,820 | 22.3 | % | |||||||||||||
| Foreclosed properties expense, net | 2,490 | 2,498 | -0.3 | % | |||||||||||||
| Merger-related expenses | 1,671 | 617 | 170.8 | % | |||||||||||||
| Other expenses | 9,337 | 8,599 | 8.6 | % | |||||||||||||
| Total noninterest expense | 62,311 | 55,154 | 13.0 | % | |||||||||||||
| Income before income taxes | 38,754 | 39,583 | -2.1 | % | |||||||||||||
| Income tax expense | 7,428 | 7,717 | -3.7 | % | |||||||||||||
| Net income | $ | 31,326 | $ | 31,866 | -1.7 | % | |||||||||||
| SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF) | |||||||||||||||||
| Annual Performance Summary (unaudited) -- 2020 vs 2019 | |||||||||||||||||
| For the Year Ended | Percent | ||||||||||||||||
| 12/31/2020 | 12/31/2019 | Change | |||||||||||||||
| Per Share Data | |||||||||||||||||
| Earnings per common share | |||||||||||||||||
| Basic | $ | 2.42 | $ | 2.55 | -5.1 | % | |||||||||||
| Diluted | $ | 2.41 | $ | 2.53 | -4.7 | % | |||||||||||
| Cash dividends | $ | 0.68 | $ | 0.59 | 15.3 | % | |||||||||||
| Dividend payout ratio | 28.2 | % | 23.1 | % | 22.1 | % | |||||||||||
| Average common shares outstanding | |||||||||||||||||
| Basic | 12,935,430 | 12,516,474 | 3.3 | % | |||||||||||||
| Diluted | 12,975,385 | 12,575,145 | 3.2 | % | |||||||||||||
| Common shares outstanding at period end | 12,942,004 | 12,408,542 | 4.3 | % | |||||||||||||
| Performance Ratios | |||||||||||||||||
| Return on average equity | 11.80 | % | 13.43 | % | -12.1 | % | |||||||||||
| Return on average tangible equity | 14.73 | % | 15.65 | % | -5.9 | % | |||||||||||
| Return on average assets | 1.13 | % | 1.40 | % | -19.3 | % | |||||||||||
| Net interest margin (A) | 3.71 | % | 3.66 | % | 1.4 | % | |||||||||||
| Efficiency ratio (B) | 50.34 | % | 54.55 | % | -7.7 | % | |||||||||||
| 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 | 12/31/2020 | 9/30/2020 | 6/30/2020 | 3/31/2020 | 12/31/2019 | ||||||||||||||||||||||||
| Statements of Income | |||||||||||||||||||||||||||||
| Interest income | |||||||||||||||||||||||||||||
| Loans, including fees | $ | 27,897 | $ | 26,807 | $ | 25,624 | $ | 25,235 | $ | 24,772 | |||||||||||||||||||
| Securities | 2,228 | 2,382 | 2,253 | 2,310 | 2,195 | ||||||||||||||||||||||||
| Other | 51 | 57 | 60 | 98 | 105 | ||||||||||||||||||||||||
| Total interest income | 30,176 | 29,246 | 27,937 | 27,643 | 27,072 | ||||||||||||||||||||||||
| Interest expense | |||||||||||||||||||||||||||||
| Deposits | 2,956 | 3,552 | 4,186 | 5,351 | 5,952 | ||||||||||||||||||||||||
| Borrowings | 1,014 | 928 | 685 | 849 | 1,292 | ||||||||||||||||||||||||
| Total interest expense | 3,970 | 4,480 | 4,871 | 6,200 | 7,244 | ||||||||||||||||||||||||
| Net interest income | 26,206 | 24,766 | 23,066 | 21,443 | 19,828 | ||||||||||||||||||||||||
| Provision for credit losses | 3,000 | 3,250 | 3,000 | 5,250 | 500 | ||||||||||||||||||||||||
| Net interest income after provision for credit losses | 23,206 | 21,516 | 20,066 | 16,193 | 19,328 | ||||||||||||||||||||||||
| Noninterest income | |||||||||||||||||||||||||||||
| Insurance commissions | 127 | 44 | 24 | 7 | 90 | ||||||||||||||||||||||||
| Trust and wealth management fees | 626 | 622 | 582 | 665 | 734 | ||||||||||||||||||||||||
| Mortgage origination revenue | 1,163 | 780 | 641 | 214 | 379 | ||||||||||||||||||||||||
| Service charges on deposit accounts | 1,305 | 1,138 | 882 | 1,263 | 1,377 | ||||||||||||||||||||||||
| Bank card revenue | 1,237 | 1,237 | 1,087 | 933 | 906 | ||||||||||||||||||||||||
| Realized securities gains | 912 | 1,522 | — | 1,038 | 403 | ||||||||||||||||||||||||
| Bank owned life insurance and annuity income | 233 | 795 | 275 | 264 | 310 | ||||||||||||||||||||||||
| Other income | 174 | 69 | 107 | 118 | 205 | ||||||||||||||||||||||||
| Total noninterest income | 5,777 | 6,207 | 3,598 | 4,502 | 4,404 | ||||||||||||||||||||||||
| Noninterest expense | |||||||||||||||||||||||||||||
| Salaries and employee benefits | 8,501 | 8,108 | 7,930 | 7,672 | 7,099 | ||||||||||||||||||||||||
| Net occupancy expense | 1,046 | 1,057 | 977 | 883 | 815 | ||||||||||||||||||||||||
| Equipment expense | 1,502 | 1,474 | 1,360 | 1,429 | 1,278 | ||||||||||||||||||||||||
| Professional fees | 370 | 364 | 417 | 387 | 412 | ||||||||||||||||||||||||
| Advertising and public relations | 207 | 145 | 93 | 152 | 214 | ||||||||||||||||||||||||
| Amortization of intangibles | 409 | 412 | 410 | 429 | 401 | ||||||||||||||||||||||||
| FDIC premiums | 261 | 320 | 110 | 165 | — | ||||||||||||||||||||||||
| Bank card expense | 573 | 589 | 560 | 503 | 454 | ||||||||||||||||||||||||
| Foreclosed properties expense, net | 676 | 607 | 240 | 966 | 262 | ||||||||||||||||||||||||
| Merger-related expenses | 218 | 28 | 637 | 788 | 98 | ||||||||||||||||||||||||
| Other expenses | 2,843 | 2,405 | 2,463 | 1,625 | 2,126 | ||||||||||||||||||||||||
| Total noninterest expense | 16,606 | 15,509 | 15,197 | 14,999 | 13,159 | ||||||||||||||||||||||||
| Income before income taxes | 12,377 | 12,214 | 8,467 | 5,696 | 10,573 | ||||||||||||||||||||||||
| Income tax expense | 2,126 | 2,594 | 1,518 | 1,190 | 2,424 | ||||||||||||||||||||||||
| Net income | $ | 10,251 | $ | 9,620 | $ | 6,949 | $ | 4,506 | $ | 8,149 | |||||||||||||||||||
| SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF) | |||||||||||||||||||||||||||||
| Five Quarter Performance Summary (unaudited) | |||||||||||||||||||||||||||||
| For the Quarter Ended | |||||||||||||||||||||||||||||
| 12/31/2020 | 9/30/2020 | 6/30/2020 | 3/31/2020 | 12/31/2019 | |||||||||||||||||||||||||
| Per Share Data | |||||||||||||||||||||||||||||
| Earnings per common share | |||||||||||||||||||||||||||||
| Basic | $ | 0.79 | $ | 0.74 | $ | 0.54 | $ | 0.35 | $ | 0.66 | |||||||||||||||||||
| Diluted | $ | 0.79 | $ | 0.74 | $ | 0.54 | $ | 0.35 | $ | 0.65 | |||||||||||||||||||
| Cash dividends | $ | 0.17 | $ | 0.17 | $ | 0.17 | $ | 0.17 | $ | 0.15 | |||||||||||||||||||
| Dividend payout ratio | 21.5 | % | 22.9 | % | 31.7 | % | 49.1 | % | 22.3 | % | |||||||||||||||||||
| Average common shares outstanding | |||||||||||||||||||||||||||||
| Basic | 12,932,768 | 12,922,158 | 12,911,979 | 12,975,429 | 12,400,932 | ||||||||||||||||||||||||
| Diluted | 12,980,041 | 12,949,584 | 12,943,804 | 13,028,409 | 12,458,702 | ||||||||||||||||||||||||
| Common shares outstanding at period end | 12,942,004 | 12,932,415 | 12,922,045 | 12,920,244 | 12,408,542 | ||||||||||||||||||||||||
| Performance Ratios | |||||||||||||||||||||||||||||
| Return on average equity | 14.90 | % | 14.38 | % | 10.75 | % | 6.92 | % | 13.32 | % | |||||||||||||||||||
| Return on average tangible equity | 18.70 | % | 18.12 | % | 13.57 | % | 8.55 | % | 15.25 | % | |||||||||||||||||||
| Return on average assets | 1.37 | % | 1.31 | % | 1.02 | % | 0.73 | % | 1.39 | % | |||||||||||||||||||
| Net interest margin (A) | 3.76 | % | 3.64 | % | 3.68 | % | 3.76 | % | 3.63 | % | |||||||||||||||||||
| Efficiency ratio (B) | 49.38 | % | 48.95 | % | 51.97 | % | 51.41 | % | 52.25 | % | |||||||||||||||||||
| 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 | 12/31/2020 | 9/30/2020 | 6/30/2020 | 3/31/2020 | 12/31/2019 | ||||||||||||||||||||||||
| Assets | |||||||||||||||||||||||||||||
| Cash and due from banks | $ | 19,522 | $ | 16,257 | $ | 16,572 | $ | 18,633 | $ | 28,137 | |||||||||||||||||||
| Interest bearing deposits other banks | 80,265 | 92,729 | 26,218 | 22,821 | 33,751 | ||||||||||||||||||||||||
| Securities available for sale | 286,127 | 297,989 | 322,539 | 305,045 | 276,355 | ||||||||||||||||||||||||
| Securities held to maturity | 99,914 | 91,600 | 80,497 | — | — | ||||||||||||||||||||||||
| Loans, net | 2,379,907 | 2,222,450 | 2,192,541 | 1,982,661 | 1,900,425 | ||||||||||||||||||||||||
| Property held for sale | 15,588 | 17,831 | 17,954 | 18,287 | 19,276 | ||||||||||||||||||||||||
| Premises and equipment, net | 52,537 | 52,880 | 51,847 | 47,078 | 44,168 | ||||||||||||||||||||||||
| Goodwill and other intangible assets | 55,123 | 48,101 | 48,513 | 34,132 | 23,022 | ||||||||||||||||||||||||
| Cash surrender value of life insurance policies and annuities | 59,438 | 57,029 | 55,315 | 46,497 | 43,603 | ||||||||||||||||||||||||
| Other assets | 57,963 | 49,996 | 49,355 | 38,168 | 34,755 | ||||||||||||||||||||||||
| Total assets | $ | 3,106,384 | $ | 2,946,862 | $ | 2,861,351 | $ | 2,513,322 | $ | 2,403,492 | |||||||||||||||||||
| Liabilities and Shareholders' Equity | |||||||||||||||||||||||||||||
| Deposits | $ | 2,595,651 | $ | 2,451,891 | $ | 2,451,769 | $ | 2,044,914 | $ | 1,913,237 | |||||||||||||||||||
| Short-term borrowings | 140,146 | 140,145 | 90,945 | 161,745 | 199,345 | ||||||||||||||||||||||||
| Long-term borrowings and subordinated debentures | 49,652 | 50,292 | 20,297 | 20,301 | 20,306 | ||||||||||||||||||||||||
| Other liabilities | 39,355 | 32,571 | 34,909 | 30,337 | 22,840 | ||||||||||||||||||||||||
| Shareholders' equity | 281,580 | 271,963 | 263,431 | 256,025 | 247,764 | ||||||||||||||||||||||||
| Total liabilities and shareholders' equity | $ | 3,106,384 | $ | 2,946,862 | $ | 2,861,351 | $ | 2,513,322 | $ | 2,403,492 | |||||||||||||||||||
| Book value per common share | $ | 21.76 | $ | 21.03 | $ | 20.39 | $ | 19.82 | $ | 19.97 | |||||||||||||||||||
| Tangible book value per common share | $ | 17.50 | $ | 17.31 | $ | 16.63 | $ | 17.17 | $ | 18.11 | |||||||||||||||||||
| Tangible common equity to tangible assets | 7.4 | % | 7.7 | % | 7.6 | % | 9.0 | % | 9.4 | % | |||||||||||||||||||
| SUMMIT FINANCIAL GROUP INC. (NASDAQ: SMMF) | |||||||||||||||||||||||||||||
| Regulatory Capital Ratios (unaudited) | |||||||||||||||||||||||||||||
| 12/31/2020 | 9/30/2020 | 6/30/2020 | 3/31/2020 | 12/31/2019 | |||||||||||||||||||||||||
| Summit Financial Group, Inc. | |||||||||||||||||||||||||||||
| CET1 Risk-based Capital | 9.3 | % | 9.9 | % | 9.7 | % | 10.8 | % | 11.1 | % | |||||||||||||||||||
| Tier 1 Risk-based Capital | 10.0 | % | 10.7 | % | 10.5 | % | 11.7 | % | 12.1 | % | |||||||||||||||||||
| Total Risk Based Capital | 12.1 | % | 12.9 | % | 11.3 | % | 12.5 | % | 12.7 | % | |||||||||||||||||||
| Tier 1 Leverage | 8.6 | % | 8.7 | % | 9.0 | % | 10.2 | % | 10.5 | % | |||||||||||||||||||
| Summit Community Bank, Inc. | |||||||||||||||||||||||||||||
| CET1 Risk-based Capital | 11.1 | % | 11.8 | % | 10.5 | % | 11.7 | % | 12.1 | % | |||||||||||||||||||
| Tier 1 Risk-based Capital | 11.1 | % | 11.8 | % | 10.5 | % | 11.7 | % | 12.1 | % | |||||||||||||||||||
| Total Risk Based Capital | 12.0 | % | 12.7 | % | 11.4 | % | 12.5 | % | 12.7 | % | |||||||||||||||||||
| Tier 1 Leverage | 9.5 | % | 9.6 | % | 9.0 | % | 10.2 | % | 10.6 | % | |||||||||||||||||||
| SUMMIT FINANCIAL GROUP INC. (NASDAQ: SMMF) | |||||||||||||||||||||||||||||
| Loan Composition (unaudited) | |||||||||||||||||||||||||||||
| Dollars in thousands | 12/31/2020 | 9/30/2020 | 6/30/2020 | 3/31/2020 | 12/31/2019 | ||||||||||||||||||||||||
| Commercial | $ | 296,832 | $ | 338,685 | $ | 311,755 | $ | 224,659 | $ | 207,138 | |||||||||||||||||||
| Mortgage warehouse lines | 251,815 | 243,730 | 252,472 | 166,826 | 126,237 | ||||||||||||||||||||||||
| Commercial real estate | |||||||||||||||||||||||||||||
| Owner occupied | 351,859 | 312,502 | 336,143 | 331,486 | 276,218 | ||||||||||||||||||||||||
| Non-owner occupied | 685,563 | 618,624 | 593,168 | 580,619 | 629,206 | ||||||||||||||||||||||||
| Construction and development | |||||||||||||||||||||||||||||
| Land and development | 107,342 | 97,343 | 92,706 | 92,332 | 84,112 | ||||||||||||||||||||||||
| Construction | 91,100 | 66,878 | 48,115 | 43,121 | 37,523 | ||||||||||||||||||||||||
| Residential real estate | |||||||||||||||||||||||||||||
| Non-jumbo | 425,520 | 368,008 | 371,225 | 378,540 | 354,963 | ||||||||||||||||||||||||
| Jumbo | 74,185 | 73,836 | 76,360 | 64,944 | 70,947 | ||||||||||||||||||||||||
| Home equity | 81,588 | 82,991 | 88,929 | 75,170 | 76,568 | ||||||||||||||||||||||||
| Consumer | 35,269 | 35,905 | 35,781 | 36,611 | 36,470 | ||||||||||||||||||||||||
| Other | 11,080 | 13,302 | 13,053 | 12,961 | 14,117 | ||||||||||||||||||||||||
| Total loans, net of unearned fees | 2,412,153 | 2,251,804 | 2,219,707 | 2,007,269 | 1,913,499 | ||||||||||||||||||||||||
| Less allowance for credit losses | 32,246 | 29,354 | 27,166 | 24,608 | 13,074 | ||||||||||||||||||||||||
| Loans, net | $ | 2,379,907 | $ | 2,222,450 | $ | 2,192,541 | $ | 1,982,661 | $ | 1,900,425 | |||||||||||||||||||
| SUMMIT FINANCIAL GROUP INC. (NASDAQ: SMMF) | |||||||||||||||||||||||||||||
| Deposit Composition (unaudited) | |||||||||||||||||||||||||||||
| Dollars in thousands | 12/31/2020 | 9/30/2020 | 6/30/2020 | 3/31/2020 | 12/31/2019 | ||||||||||||||||||||||||
| Core deposits | |||||||||||||||||||||||||||||
Non interest bearing checking | $ | 440,819 | $ | 420,070 | $ | 443,190 | $ | 337,446 | $ | 260,553 | |||||||||||||||||||
Interest bearing checking | 934,185 | 867,442 | 830,258 | 648,214 | 630,352 | ||||||||||||||||||||||||
Savings | 621,168 | 598,564 | 561,029 | 457,010 | 418,096 | ||||||||||||||||||||||||
Time deposits | 460,443 | 414,542 | 422,286 | 384,062 | 373,125 | ||||||||||||||||||||||||
| Total core deposits | 2,456,615 | 2,300,618 | 2,256,763 | 1,826,732 | 1,682,126 | ||||||||||||||||||||||||
Brokered deposits | 55,454 | 64,120 | 90,279 | 111,156 | 150,554 | ||||||||||||||||||||||||
Other non-core time deposits | 83,582 | 87,153 | 104,727 | 107,026 | 80,557 | ||||||||||||||||||||||||
| Total deposits | $ | 2,595,651 | $ | 2,451,891 | $ | 2,451,769 | $ | 2,044,914 | $ | 1,913,237 | |||||||||||||||||||
| SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF) | |||||||||||||||||||||||||||||
Asset Quality Information (unaudited) | |||||||||||||||||||||||||||||
| For the Quarter Ended | |||||||||||||||||||||||||||||
| Dollars in thousands | 12/31/2020 | 9/30/2020 | 6/30/2020 | 3/31/2020 | 12/31/2019 | ||||||||||||||||||||||||
| Gross loan charge-offs | $ | 434 | $ | 1,259 | $ | 218 | $ | 698 | $ | 455 | |||||||||||||||||||
| Gross loan recoveries | (195) | (245) | (269) | (197) | (88) | ||||||||||||||||||||||||
| Net loan charge-offs/(recoveries) | $ | 239 | $ | 1,014 | $ | (51) | $ | 501 | $ | 367 | |||||||||||||||||||
| Net loan charge-offs to average loans (annualized) | 0.04 | % | 0.18 | % | -0.01 | % | 0.10 | % | 0.08 | % | |||||||||||||||||||
| Allowance for loan credit losses | $ | 32,246 | $ | 29,354 | $ | 27,166 | $ | 24,608 | $ | 13,074 | |||||||||||||||||||
| Allowance for loan credit losses as a percentage of period end loans | 1.34 | % | 1.30 | % | 1.22 | % | 1.23 | % | 0.68 | % | |||||||||||||||||||
| Allowance for credit losses on unfunded loan commitments | $ | 4,190 | $ | 3.525 | $ | 3,477 | $ | 2,984 | $ | — | |||||||||||||||||||
| Nonperforming assets: | |||||||||||||||||||||||||||||
| Nonperforming loans | |||||||||||||||||||||||||||||
| Commercial | $ | 525 | $ | 553 | $ | 754 | $ | 560 | $ | 764 | |||||||||||||||||||
| Commercial real estate | 14,237 | 4,313 | 5,822 | 5,644 | 5,800 | ||||||||||||||||||||||||
| Residential construction and development | 235 | 2 | 14 | 11 | 326 | ||||||||||||||||||||||||
| Residential real estate | 5,264 | 5,104 | 5,873 | 4,343 | 4,404 | ||||||||||||||||||||||||
| Consumer | 74 | 31 | 29 | 65 | 116 | ||||||||||||||||||||||||
| Other | — | — | 35 | 100 | 100 | ||||||||||||||||||||||||
| Total nonperforming loans | 20,335 | 10,003 | 12,527 | 10,723 | 11,510 | ||||||||||||||||||||||||
| Foreclosed properties | |||||||||||||||||||||||||||||
| Commercial real estate | 2,581 | 2,500 | 1,774 | 1,866 | 1,930 | ||||||||||||||||||||||||
| Commercial construction and development | 4,154 | 4,154 | 4,511 | 4,511 | 4,601 | ||||||||||||||||||||||||
| Residential construction and development | 7,791 | 10,330 | 10,645 | 10,774 | 11,169 | ||||||||||||||||||||||||
| Residential real estate | 1,062 | 847 | 1,024 | 1,136 | 1,576 | ||||||||||||||||||||||||
| Total foreclosed properties | 15,588 | 17,831 | 17,954 | 18,287 | 19,276 | ||||||||||||||||||||||||
| Other repossessed assets | — | — | — | 49 | 17 | ||||||||||||||||||||||||
| Total nonperforming assets | $ | 35,923 | $ | 27,834 | $ | 30,481 | $ | 29,059 | $ | 30,803 | |||||||||||||||||||
| Nonperforming loans to period end loans | 0.84 | % | 0.44 | % | 0.56 | % | 0.53 | % | 0.60 | % | |||||||||||||||||||
| Nonperforming assets to period end assets | 1.16 | % | 0.94 | % | 1.07 | % | 1.16 | % | 1.28 | % | |||||||||||||||||||
| Troubled debt restructurings | |||||||||||||||||||||||||||||
Performing | $ | 21,375 | $ | 22,232 | $ | 22,117 | $ | 22,966 | $ | 23,339 | |||||||||||||||||||
Nonperforming | 3,127 | 2,988 | 3,003 | 2,831 | 2,337 | ||||||||||||||||||||||||
Total troubled debt restructurings | $ | 24,502 | $ | 25,220 | $ | 25,120 | $ | 25,797 | $ | 25,676 | |||||||||||||||||||
| Loans Past Due 30-89 Days (unaudited) | |||||||||||||||||||||||||||||
| For the Quarter Ended | |||||||||||||||||||||||||||||
| Dollars in thousands | 12/31/2020 | 9/30/2020 | 6/30/2020 | 3/31/2020 | 12/31/2019 | ||||||||||||||||||||||||
| Commercial | $ | 1 | $ | 147 | $ | 196 | $ | 160 | $ | 111 | |||||||||||||||||||
| Commercial real estate | 274 | 1,740 | 1,231 | 2,106 | 1,196 | ||||||||||||||||||||||||
| Construction and development | 47 | 422 | 8 | 53 | 236 | ||||||||||||||||||||||||
| Residential real estate | 4,405 | 4,464 | 2,763 | 5,178 | 4,775 | ||||||||||||||||||||||||
| Consumer | 233 | 160 | 164 | 222 | 269 | ||||||||||||||||||||||||
| Other | 5 | 2 | 3 | 7 | 25 | ||||||||||||||||||||||||
| Total | $ | 4,965 | $ | 6,935 | $ | 4,365 | $ | 7,726 | $ | 6,612 | |||||||||||||||||||
| SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Average Balance Sheet, Interest Earnings & Expenses and Average Rates | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Q4 2020 vs Q3 2020 vs Q4 2019 (unaudited) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Q4 2020 | Q3 2020 | Q4 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||
| 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 | $ | 2,292,797 | $ | 27,774 | 4.82 | % | $ | 2,251,722 | $ | 26,656 | 4.71 | % | $ | 1,853,197 | $ | 24,622 | 5.27 | % | |||||||||||||||||||||||||||||||||||
| Tax-exempt (2) | 13,062 | 156 | 4.75 | % | 16,245 | 191 | 4.68 | % | 15,738 | 189 | 4.76 | % | |||||||||||||||||||||||||||||||||||||||||
| Securities | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Taxable | 258,594 | 1,341 | 2.06 | % | 261,231 | 1,445 | 2.20 | % | 218,375 | 1,654 | 3.00 | % | |||||||||||||||||||||||||||||||||||||||||
| Tax-exempt (2) | 147,979 | 1,122 | 3.02 | % | 150,350 | 1,186 | 3.14 | % | 69,276 | 686 | 3.93 | % | |||||||||||||||||||||||||||||||||||||||||
| Interest bearing deposits other banks and Federal funds sold | 87,151 | 51 | 0.23 | % | 60,639 | 57 | 0.37 | % | 32,779 | 105 | 1.27 | % | |||||||||||||||||||||||||||||||||||||||||
| Total interest earning assets | 2,799,583 | 30,444 | 4.33 | % | 2,740,187 | 29,535 | 4.29 | % | 2,189,365 | 27,256 | 4.94 | % | |||||||||||||||||||||||||||||||||||||||||
| Noninterest earning assets | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Cash & due from banks | 16,846 | 16,603 | 12,932 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Premises & equipment | 52,688 | 52,329 | 44,136 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Other assets | 157,436 | 154,578 | 103,481 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Allowance for credit losses | (30,778) | (28,144) | (13,055) | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Total assets | $ | 2,995,775 | $ | 2,935,553 | $ | 2,336,859 | |||||||||||||||||||||||||||||||||||||||||||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Liabilities | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest bearing liabilities | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest bearing | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| demand deposits | $ | 895,325 | $ | 357 | 0.16 | % | $ | 850,281 | $ | 380 | 0.18 | % | $ | 619,939 | $ | 1,378 | 0.88 | % | |||||||||||||||||||||||||||||||||||
| Savings deposits | 607,481 | 716 | 0.47 | % | 588,085 | 925 | 0.63 | % | 351,653 | 1,201 | 1.35 | % | |||||||||||||||||||||||||||||||||||||||||
| Time deposits | 566,917 | 1,883 | 1.32 | % | 585,092 | 2,247 | 1.53 | % | 641,160 | 3,373 | 2.09 | % | |||||||||||||||||||||||||||||||||||||||||
| Short-term borrowings | 140,243 | 467 | 1.32 | % | 165,555 | 734 | 1.76 | % | 188,007 | 1,062 | 2.24 | % | |||||||||||||||||||||||||||||||||||||||||
| Long-term borrowings and subordinated debentures | 49,637 | 547 | 4.38 | % | 23,230 | 194 | 3.32 | % | 20,308 | 230 | 4.49 | % | |||||||||||||||||||||||||||||||||||||||||
| Total interest bearing liabilities | 2,259,603 | 3,970 | 0.70 | % | 2,212,243 | 4,480 | 0.81 | % | 1,821,067 | 7,244 | 1.58 | % | |||||||||||||||||||||||||||||||||||||||||
| Noninterest bearing liabilities | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Demand deposits | 426,441 | 421,741 | 248,159 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Other liabilities | 34,558 | 33,978 | 22,856 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Total liabilities | 2,720,602 | 2,667,962 | 2,092,082 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Shareholders' equity - common | 275,173 | 267,591 | 244,777 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total liabilities and shareholders' equity | $ | 2,995,775 | $ | 2,935,553 | $ | 2,336,859 | |||||||||||||||||||||||||||||||||||||||||||||||
| NET INTEREST EARNINGS | $ | 26,474 | $ | 25,055 | $ | 20,012 | |||||||||||||||||||||||||||||||||||||||||||||||
| NET INTEREST MARGIN | 3.76 | % | 3.64 | % | 3.63 | % | |||||||||||||||||||||||||||||||||||||||||||||||
| (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 $268,000, $289,000 and $184,000 for Q4 2020, Q3 2020 and Q4 2019, respectively. | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF) | |||||||||||||||||||||||||||||||||||
| Average Balance Sheet, Interest Earnings & Expenses and Average Rates | |||||||||||||||||||||||||||||||||||
| YTD 2020 vs YTD 2019 (unaudited) | |||||||||||||||||||||||||||||||||||
| YTD 2020 | YTD 2019 | ||||||||||||||||||||||||||||||||||
| 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 | $ | 2,150,294 | $ | 104,986 | 4.88 | % | $ | 1,782,477 | $ | 96,499 | 5.41 | % | |||||||||||||||||||||||
| Tax-exempt (2) | 15,352 | 732 | 4.77 | % | 15,315 | 780 | 5.09 | % | |||||||||||||||||||||||||||
| Securities | |||||||||||||||||||||||||||||||||||
| Taxable | 256,893 | 5,996 | 2.33 | % | 205,340 | 6,511 | 3.17 | % | |||||||||||||||||||||||||||
| Tax-exempt (2) | 122,386 | 4,020 | 3.28 | % | 90,823 | 3,608 | 3.97 | % | |||||||||||||||||||||||||||
| Interest bearing deposits other banks and Federal funds sold | 56,399 | 266 | 0.47 | % | 39,408 | 595 | 1.51 | % | |||||||||||||||||||||||||||
| Total interest earning assets | 2,601,324 | 116,000 | 4.46 | % | 2,133,363 | 107,993 | 5.06 | % | |||||||||||||||||||||||||||
| Noninterest earning assets | |||||||||||||||||||||||||||||||||||
| Cash & due from banks | 16,139 | 12,939 | |||||||||||||||||||||||||||||||||
| Premises & equipment | 50,418 | 41,778 | |||||||||||||||||||||||||||||||||
| Other assets | 143,284 | 107,456 | |||||||||||||||||||||||||||||||||
| Allowance for loan losses | (26,915) | (13,225) | |||||||||||||||||||||||||||||||||
| Total assets | $ | 2,784,250 | $ | 2,282,311 | |||||||||||||||||||||||||||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||||||||||||||||||||||||||
| Liabilities | |||||||||||||||||||||||||||||||||||
| Interest bearing liabilities | |||||||||||||||||||||||||||||||||||
| Interest bearing | |||||||||||||||||||||||||||||||||||
| demand deposits | $ | 789,064 | $ | 2,187 | 0.28 | % | $ | 586,938 | $ | 6,394 | 1.09 | % | |||||||||||||||||||||||
| Savings deposits | 539,625 | 4,178 | 0.77 | % | 317,569 | 3,969 | 1.25 | % | |||||||||||||||||||||||||||
| Time deposits | 598,085 | 9,680 | 1.62 | % | 660,910 | 13,334 | 2.02 | % | |||||||||||||||||||||||||||
| Short-term borrowings | 130,411 | 2,330 | 1.79 | % | 194,450 | 5,303 | 2.73 | % | |||||||||||||||||||||||||||
| Long-term borrowings and subordinated debentures | 28,396 | 1,147 | 4.04 | % | 20,315 | 987 | 4.86 | % | |||||||||||||||||||||||||||
| Total interest bearing liabilities | 2,085,581 | 19,522 | 0.94 | % | 1,780,182 | 29,987 | 1.68 | % | |||||||||||||||||||||||||||
| Noninterest bearing liabilities | |||||||||||||||||||||||||||||||||||
| Demand deposits | 401,502 | 244,559 | |||||||||||||||||||||||||||||||||
| Other liabilities | 31,712 | 20,341 | |||||||||||||||||||||||||||||||||
| Total liabilities | 2,518,795 | 2,045,082 | |||||||||||||||||||||||||||||||||
| Shareholders' equity - common | 265,455 | 237,229 | |||||||||||||||||||||||||||||||||
Total liabilities and shareholders' equity | $ | 2,784,250 | $ | 2,282,311 | |||||||||||||||||||||||||||||||
| NET INTEREST EARNINGS | $ | 96,478 | $ | 78,006 | |||||||||||||||||||||||||||||||
| NET INTEREST MARGIN | 3.71 | % | 3.66 | % | |||||||||||||||||||||||||||||||
| (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 $998,000 and $922,000 for the YTD 2020 and YTD 2019, respectively. | |||||||||||||||||||||||||||||||||||