Summit Financial Group, Inc. (“Company” or “Summit”) (NASDAQ: SMMF)
today reported first quarter 2020 net income of $4.51 million, or
$0.35 per diluted share. In comparison, earnings for fourth quarter
2019 were $8.15 million, or $0.65 per diluted share, and for first
quarter 2019, $7.09 million, or $0.56 per diluted share. Summit
achieved returns on average assets and average tangible equity in
first quarter 2020 of 0.73 percent and 8.55 percent, respectively,
compared to 1.27 percent and 14.80 percent, respectively, in the
same period of 2019.
“Despite the unprecedented challenges posed by the COVID-19
crisis and its resulting business conditions, Summit produced solid
core earnings this past quarter,” commented H. Charles Maddy, III,
President and Chief Executive Officer of Summit. “As we navigate
the COVID-19 crisis, we believe our Company is well-prepared to
endure its impacts. The Company has strong levels of capital and
liquidity, diversified revenue streams, a sound credit record and
an experienced management team. I am extremely proud of the
diligent efforts and steadfast commitment put forth by our
management and employees to maintain operational continuity and a
high level of client service during this crisis. We are very
concerned about the health and welfare of our employees, clients,
shareholders and communities, and are supporting all our
stakeholders throughout this crisis in a thoughtful, disciplined
and compassionate manner. We especially appreciate our employees’
efforts in this uncertain time, and we will continue to
persevere.”
Highlights for Q1 2020
- Provision for credit losses of $5.25 million in Q1 2020
compared to $500,000 in Q4 2019 and $250,000 in Q1 2019; the
increase in this quarter’s provision resulted principally due to
the estimated potential future economic impact of the COVID-19
crisis.
- Net interest income increased 32.6 percent (annualized)
compared to Q4 2019 and increased 15.5 percent versus the same
period in 2019, primarily due to loan growth and lower funding
costs.
- Despite volatile markets, net interest margin in Q1 2020
increased 13 basis points to 3.76 percent as compared to the linked
quarter, as yields on interest earning assets declined 11 basis
points while deposit and other funding costs declined 23 basis
points.
- Loan balances, excluding mortgage warehouse lines of credit,
increased $53.2 million during the quarter, including $39.8 million
in loans acquired from Cornerstone; excluding mortgage warehouse
lines of credit and acquired Cornerstone loans, loans increased
$13.4 million during the quarter, or 3.0 percent (annualized).
- Mortgage warehouse lines of credit increased $40.6 million
during the quarter.
- Efficiency ratio improved to 51.41 percent compared to 52.25
percent in the linked quarter and 56.63 percent for Q1 2019.
- Realized securities gains of $1.04 million in Q1 2020 compared
to $403,000 in the linked quarter.
- Merger expenses were $788,000 in Q1 2020 compared to $98,000 in
the linked quarter.
- Net foreclosed properties expenses increased to $966,000 in Q1
2020 compared to $262,000 in Q4 2019; this is primarily the result
of write downs of foreclosed properties to fair values totaling
$946,000 in Q1 2020 compared to $497,000 in Q4 2019, while realized
net gains on sales of foreclosed properties were $61,000 during Q1
2020 compared to $312,000 in Q4 2019.
- Nonperforming assets as a percentage of total assets improved
to 1.16 percent from 1.28 percent for the linked quarter and 1.53
percent at the end of Q1 2019.
COVID-19 Impacts
Operations
As the COVID-19 related events unfolded throughout Q1 2020,
Summit implemented various plans, strategies and protocols to
protect our employees, maintain services for clients, assure the
functional continuity of our operating systems, controls and
processes, and mitigate financial risks posed by changing market
conditions. In order to protect employees and assure workforce
continuity and operational redundancy, we imposed business travel
restrictions, enhanced our sanitizing protocols within our
facilities and physically separated, to the extent possible, our
critical operations workforce that cannot work remotely. To limit
the risk of virus spread, the Company implemented drive-thru only
and by appointment operating protocols throughout its bank branch
network. We also maintained active communications with our critical
vendors to assure all mission-critical activities and functions are
being performed in line with our client-service standards.
Capital and Liquidity
Although there is a high degree of uncertainty around the
magnitude and duration of the economic impact of the COVID-19
pandemic, management believes that our financial position,
including high levels of capital and liquidity, will allow us to
successfully endure the negative economic impacts of the crisis.
Our capital management activities, coupled with our historically
strong earnings performance and prudent dividend practices, have
allowed us to build and maintain strong capital reserves. At March
31, 2020, all of Summit’s regulatory capital ratios significantly
exceeded well-capitalized standards. More specifically, the Company
bank subsidiary’s Tier 1 Leverage Ratio, a common measure to
evaluate a financial institutions capital strength, was 10.2% at
March 31, 2020, which represents over two times its
well-capitalized regulatory minimum of 5.0%.
In addition, management believes the Company’s liquidity
position is strong. The Company’s bank subsidiary maintains a
funding base largely comprised of core noninterest bearing demand
deposit accounts and low cost interest-bearing transactional
deposit accounts with clients that operate or reside within the
footprint of its branch bank network. At March 31, 2020, the
Company’s cash and cash equivalent balances were $41.5 million. In
addition, Summit maintains an available-for-sale securities
portfolio, comprised primarily of highly liquid U.S. agency
securities, highly-rated municipal securities and U.S.
agency-backed mortgage backed securities, which serves as a ready
source of liquidity. At March 31, 2020, the Company’s
available-for-sale securities portfolio totaled $305.0 million,
$205.8 million of which was unpledged as collateral. The Company
bank subsidiary’s unused borrowing capacity at the Federal Home
Loan Bank of Pittsburgh at March 31, 2020 was $689.2 million, and
it maintained $177.1 million of borrowing availability at the
Federal Reserve Bank of Richmond’s discount window. The Company has
not experienced significant draws on clients’ available commercial
lines of credit and home equity lines of credit due to the COVID-19
crisis, nor has it observed any significant or unusual client
activity that portends unmanageable levels of stress on the our
liquidity profile.
Summit is participating in the Paycheck Protection Program
(“PPP”), a $660 billion low-interest business loan program funded
by the U.S. Treasury Department and administered by the U.S. Small
Business Administration. The PPP Loan Program provides U.S.
government guarantees for lenders, as well as loan forgiveness
incentives for borrowers that predominately utilize the loan
proceeds to cover employee compensation-related business costs.
Through April 28, 2020, Summit had approved 468 PPP loans totaling
$83.8 million. While we anticipate high levels of client
utilization of the PPP loan program, our liquidity resources are
adequate to meet the funding requirements of these loans.
Lending
We have taken actions to identify and assess our COVID-19
related credit exposures by asset classes and borrower types. We
implemented a loan modification program to assist both consumer and
business borrowers that are experiencing or expect to experience
financial hardships due to COVID-19 related challenges.
Accordingly, the following table summarizes the aggregate balances
of loans the Company has modified as result of COVID-19 through
April 24, 2020 classified by types of loans and impacted
borrowers.
|
|
Loan Balances Modified Due to COVID-19 through
4/24/2020 |
Dollars
in thousands |
Total Loan Balance as of
3/31/2020 |
Loans Modified to Interest Only Payments (6
Months or Less) |
Loans Modified to Payment Deferral (3
Months) |
Total Loans Modified |
Percentage of Loans Modified |
Hospitality Industry |
$ |
120,201 |
$ |
56,006 |
$ |
45,778 |
$ |
101,784 |
84.7 |
% |
Non-Owner Occupied Retail
Stores |
|
107,420 |
|
34,774 |
|
12,518 |
|
47,292 |
44.0 |
% |
Owner-Occupied Retail
Stores |
|
118,535 |
|
21,103 |
|
8,715 |
|
29,818 |
25.2 |
% |
Restaurants |
|
7,416 |
|
2,173 |
|
1,765 |
|
3,938 |
53.1 |
% |
Oil & Gas Industry |
|
32,297 |
|
914 |
|
4,425 |
|
5,339 |
16.5 |
% |
Other Commercial Loans |
|
898,310 |
|
78,836 |
|
29,061 |
|
107,897 |
12.0 |
% |
Total Commercial Loans |
|
1,284,179 |
|
193,806 |
|
102,262 |
|
296,068 |
23.1 |
% |
Residential 1-4 Family
Personal |
|
276,189 |
|
3,278 |
|
13,061 |
|
16,339 |
5.9 |
% |
Residential 1-4 Family
Rentals |
|
167,295 |
|
15,467 |
|
4,841 |
|
20,308 |
12.1 |
% |
Home Equity Loans |
|
75,170 |
|
- |
|
402 |
|
402 |
0.5 |
% |
Total Residential Real Estate Loans |
|
518,654 |
|
18,745 |
|
18,304 |
|
37,049 |
7.1 |
% |
Consumer Loans |
|
35,344 |
|
365 |
|
613 |
|
978 |
2.8 |
% |
Mortgage Warehouse Loans |
|
166,826 |
|
- |
|
- |
|
- |
0.0 |
% |
Credit
Cards and Overdrafts |
|
2,266 |
|
- |
|
- |
|
- |
0.0 |
% |
Total Loans |
$ |
2,007,269 |
$ |
212,916 |
$ |
121,179 |
$ |
334,095 |
16.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
Modified loans with deferred payments will continue to accrue
interest during the deferral period unless otherwise classified as
nonperforming. Consistent with bank regulatory guidance, borrowers
that were otherwise current on loan payments that were granted
COVID-19 related financial hardship payment deferrals will continue
to be reported as current loans throughout the agreed upon deferral
periods. COVID-19 related loan modifications are also deemed
to be insignificant borrower concessions, and therefore, such
modified loans were not classified as troubled-debt restructured
loans as of March 31, 2020. We anticipate that the amounts of
COVID-19 related loan modifications will continue to increase
during Q2 2020.
The COVID-19 crisis is expected to continue to impact our
financial results, as well as demand for our services and products
during the second quarter of 2020 and potentially beyond. The short
and long-term implications of the COVID-19 crisis, and related
monetary and fiscal stimulus measures, on our future revenues,
earnings results, allowance for credit losses, capital reserves and
liquidity are unknown at present.
CECL Adoption and Asset Quality
Effective January 1, 2020, we adopted ASU No. 2016-13, Financial
Instruments – Credit Losses, also known as Current Expected Credit
Losses (“CECL”). Upon the adoption of CECL, the Company recorded a
net cumulative-effect adjustment that decreased retained earnings
by $6.76 million. This adjustment was the result of a $6.93 million
net increase in the allowance for credit losses (“ACL”), from
$13.07 million at December 31, 2019 to $20.00 million upon adoption
(including a $470,000 reclassification from loans to the ACL for
purchased credit deteriorated (“PCD”) loans now accounted for in
the ACL), a $2.43 million increase in other liabilities to provide
an allowance for off-balance sheet credit exposures, offset by an
increase to deferred income tax assets of $2.13 million.
The table below summarizes the changes in the ACL prior to CECL
adoption through March 31, 2020.
Dollars in thousands |
Allowance for Loan Losses at December 31,
2019 |
Impact of CECL Adoption |
Allowance for Loan Credit Losses at January 1,
2020 |
Provision for Loan Credit Losses for Q1 2020 |
CornerstoneDay 1 PCD Loan Credit
Marks |
Loan Net Charge-offs for Q1 2020 |
Allowance for Loan Credit Losses at March 31,
2020 |
Balance |
$ |
13,074 |
$ |
6,927 |
|
$ |
20,001 |
$ |
4,699 |
|
$ |
409 |
|
$ |
(501 |
) |
$ |
24,608 |
|
% Changes |
NA |
|
53.0 |
% |
NA |
|
35.9 |
% |
|
3.1 |
% |
|
-3.8 |
% |
|
88.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
We have recorded no allowance for credit losses relative to the
Company’s available-for-sale debt securities or its other
instruments carried at amortized cost.
First quarter 2020 net loan charge-offs were $501,000, or 0.10
percent of average loans annualized, while $4.7 million was added
to the allowance for loan credit losses through the provision for
loan credit losses. The allowance for loan credit losses stood at
1.23 percent of total loans at March 31, 2020, compared to 0.68
percent at year-end 2019.
As of March 31, 2020, nonperforming assets (“NPAs”), consisting
of nonperforming loans, foreclosed properties and repossessed
assets, improved to $29.1 million, or 1.16 percent of assets. This
compares to $30.8 million, or 1.28 percent of assets at the linked
quarter-end and $34.4 million, or 1.53 percent of assets at the end
of Q1 2019.
Merger & Acquisition Activity
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
and converted substantially all of its data processing systems to
that of Summit’s on March 21, 2020; accordingly, Cornerstone’s
results of operations are included in Summit’s consolidated results
of operations from the date of acquisition, and therefore Summit’s
first quarter 2020 results reflect increased levels of average
balances, income and expenses compared to its first quarter 2019
and fourth quarter 2019 results. At consummation, Cornerstone
had total assets of $195.0 million, loans of $39.8 million, and
deposits of $173.0 million.
On April 24, 2020, Summit’s bank subsidiary, 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. (NASDAQ: MVBF).
Summit assumed approximately $195.0 million in deposits and
acquired approximately $35.3 million in loans in conjunction with
this purchase.
Results of Operations
Total revenue for first quarter 2020, consisting of net interest
income and noninterest income, increased 13.8 percent to $25.9
million, principally as a result of higher net interest income
compared to $22.8 million for the first quarter 2019.
For the first quarter of 2020, net interest income was $21.4
million, an increase of 15.5 percent from the $18.6 million
reported in the prior-year first quarter and an 8.1 percent
increase compared to the linked quarter. The net interest margin
for first quarter 2020 increased to 3.76 percent compared to 3.63
percent for the linked quarter and 3.66 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 Q1 2020, 3.60 percent for
Q4 2019 and 3.64 percent for Q1 2019.
Noninterest income, consisting primarily of service fee income
from community banking activities and trust and wealth management
fees, for first quarter 2020 was $4.50 million compared to $4.23
million for the comparable period of 2019. Excluding realized
securities gains, noninterest income was $3.46 million for first
quarter 2020, compared to $4.23 million reported for first quarter
2019 and was $4.00 million for the linked quarter. The lower levels
of 2020 noninterest income compared to 2019 periods are primarily
due to the elimination of insurance commission revenue as result of
SIS’ sale in Q2 2019.
We recorded a $5.25 million provision for credit losses during
first quarter 2020 compared to $500,000 for the linked quarter and
$250,000 for the comparable period of 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. Our Q1 2020 provision for credit losses reflects a change
in our CECL computational model’s forecasted economic conditions
over the next four quarters from “major improvement” as of January
1, 2020 to “major risk” as of March 31, 2020 due to the COVID-19
crisis.
Q1 2020 total noninterest expense increased 8.2 percent to $15.0
million compared to $13.9 million for the prior-year first quarter
and increased 14.0 percent compared to the linked quarter.
Our increased noninterest expense is principally due to expenses
associated with the acquired Cornerstone operations, higher
writedowns of foreclosed properties and increased merger
expenses. This increase is partially offset by income related
to our deferred director compensation plan of $483,000 recognized
in Q1 2020 compared to deferred director compensation plan expense
of $484,000 and $239,000 recorded in Q1 2019 and Q4 2019,
respectively. Under our director deferred compensation plans,
directors optionally elect to defer their director fees into a
"phantom" investment plan whereby the Company recognizes expense or
benefit relative to the phantom returns or losses of such
investments. As result of the stock market’s deterioration during
Q1 2020, we recognized income related to deferred director
compensation this quarter.
Balance Sheet
At March 31, 2020, total assets were $2.51 billion, an increase
of $109.8 million, or 4.6 percent since December 31, 2019. Total
loans, net of unearned fees and allowance for loan credit losses,
were $1.98 billion at March 31, 2020, up $82.2 million, or 4.3
percent, from the $1.90 billion reported at year-end 2019.
Loans, excluding mortgage warehouse lines of credit and acquired
Cornerstone loans, increased $13.4 million during the quarter, or
3.0 percent (on an annualized basis).
At March 31, 2020, core deposits were $1.83 billion, an increase
of $144.6 million or 8.6 percent during first quarter 2020 -- as
checking deposits increased $94.8 million or 10.6 percent, core
time deposits increased by $10.9 million or 2.9 percent and savings
deposits increased $38.9 million or 9.3 percent. Excluding
acquired deposits, Q1 2020 core deposit growth was $3.44 million or
2.0 percent.
Shareholders’ equity was $256.0 million as of March 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 decreased to $17.17 at
March 31, 2020 compared to $18.11 at December 31, 2019. Summit had
12,920,244 outstanding common shares at March 31, 2020 compared to
12,408,542 at year end 2019.
As announced this quarter, 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 Q1 2020, 66,611 shares of our
common stock were repurchased under the Plan at an average price of
19.21 per share.
About the Company
Summit Financial Group, Inc. is a $2.51 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 and
the Northern, Shenandoah Valley and Southwestern regions of
Virginia, through its bank subsidiary, Summit Community Bank, Inc.,
which operates thirty-nine 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 crisis, 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)Q1 2020 vs Q1 2019
|
|
|
|
For the Quarter Ended |
Percent |
Dollars in
thousands |
3/31/2020 |
3/31/2019 |
Change |
Statements of Income |
|
|
|
Interest income |
|
|
|
Loans, including fees |
$ |
25,235 |
|
$ |
23,051 |
|
9.5 |
% |
Securities |
|
2,310 |
|
|
2,586 |
|
-10.7 |
% |
Other |
|
98 |
|
|
231 |
|
-57.6 |
% |
Total interest income |
|
27,643 |
|
|
25,868 |
|
6.9 |
% |
Interest expense |
|
|
|
Deposits |
|
5,351 |
|
|
5,564 |
|
-3.8 |
% |
Borrowings |
|
849 |
|
|
1,731 |
|
-51.0 |
% |
Total interest expense |
|
6,200 |
|
|
7,295 |
|
-15.0 |
% |
Net interest income |
|
21,443 |
|
|
18,573 |
|
15.5 |
% |
Provision for credit losses |
|
5,250 |
|
|
250 |
|
2000.0 |
% |
Net interest income after provision for credit losses |
|
16,193 |
|
|
18,323 |
|
-11.6 |
% |
|
|
|
|
Noninterest income |
|
|
|
Insurance commissions |
|
7 |
|
|
1,174 |
|
-99.4 |
% |
Trust and wealth management fees |
|
665 |
|
|
586 |
|
13.5 |
% |
Service charges on deposit accounts |
|
1,263 |
|
|
1,180 |
|
7.0 |
% |
Bank card revenue |
|
933 |
|
|
814 |
|
14.6 |
% |
Realized securities gains (losses) |
|
1,038 |
|
|
(3 |
) |
n/m |
|
Bank owned life insurance income |
|
264 |
|
|
238 |
|
10.9 |
% |
Other income |
|
332 |
|
|
241 |
|
37.8 |
% |
Total noninterest income |
|
4,502 |
|
|
4,230 |
|
6.4 |
% |
Noninterest expense |
|
|
|
Salaries and employee benefits |
|
7,672 |
|
|
7,347 |
|
4.4 |
% |
Net occupancy expense |
|
883 |
|
|
924 |
|
-4.4 |
% |
Equipment expense |
|
1,429 |
|
|
1,179 |
|
21.2 |
% |
Professional fees |
|
387 |
|
|
403 |
|
-4.0 |
% |
Advertising and public relations |
|
152 |
|
|
153 |
|
-0.7 |
% |
Amortization of intangibles |
|
429 |
|
|
476 |
|
-9.9 |
% |
FDIC premiums |
|
165 |
|
|
- |
|
n/m |
|
Bank card expense |
|
503 |
|
|
439 |
|
14.6 |
% |
Foreclosed properties expense, net |
|
966 |
|
|
384 |
|
151.6 |
% |
Merger-related expenses |
|
788 |
|
|
63 |
|
1150.8 |
% |
Other expenses |
|
1,625 |
|
|
2,492 |
|
-34.8 |
% |
Total noninterest expense |
|
14,999 |
|
|
13,860 |
|
8.2 |
% |
Income before income taxes |
|
5,696 |
|
|
8,693 |
|
-34.5 |
% |
Income taxes |
|
1,190 |
|
|
1,601 |
|
-25.7 |
% |
Net income |
$ |
4,506 |
|
$ |
7,092 |
|
-36.5 |
% |
|
|
|
|
|
|
|
|
|
SUMMIT
FINANCIAL GROUP, INC. (NASDAQ: SMMF) |
|
|
Quarterly Performance Summary
(unaudited) |
|
|
Q1 2020 vs Q1 2019 |
|
|
|
|
|
|
|
For the Quarter Ended |
Percent |
|
3/31/2020 |
3/31/2019 |
Change |
Per Share
Data |
|
|
|
Earnings per common share |
|
|
|
Basic |
$ |
0.35 |
|
$ |
0.56 |
|
-37.5 |
% |
Diluted |
$ |
0.35 |
|
$ |
0.56 |
|
-37.5 |
% |
|
|
|
|
Cash dividends |
$ |
0.17 |
|
$ |
0.14 |
|
21.4 |
% |
Dividend payout ratio |
|
49.1 |
% |
|
25.0 |
% |
96.4 |
% |
|
|
|
|
Average common shares outstanding |
|
|
|
Basic |
|
12,975,429 |
|
|
12,717,501 |
|
2.0 |
% |
Diluted |
|
13,028,409 |
|
|
12,778,644 |
|
2.0 |
% |
|
|
|
|
Common shares outstanding at period end |
|
12,920,244 |
|
|
12,661,528 |
|
2.0 |
% |
|
|
|
|
Performance
Ratios |
|
|
|
Return on average equity |
|
6.92 |
% |
|
12.28 |
% |
-43.6 |
% |
Return on average tangible equity |
|
8.55 |
% |
|
14.80 |
% |
-42.2 |
% |
Return on average assets |
|
0.73 |
% |
|
1.27 |
% |
-42.5 |
% |
Net interest margin (A) |
|
3.76 |
% |
|
3.66 |
% |
2.7 |
% |
Efficiency ratio (B) |
|
51.41 |
% |
|
56.63 |
% |
9.2 |
% |
|
|
|
|
|
|
|
|
|
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 |
3/31/2020 |
12/31/2019 |
9/30/2019 |
6/30/2019 |
3/31/2019 |
Statements of
Income |
|
|
|
|
|
Interest income |
|
|
|
|
|
Loans, including fees |
$ |
25,235 |
|
$ |
24,772 |
|
$ |
24,940 |
|
$ |
24,352 |
|
$ |
23,051 |
|
Securities |
|
2,310 |
|
|
2,195 |
|
|
2,184 |
|
|
2,396 |
|
|
2,586 |
|
Other |
|
98 |
|
|
105 |
|
|
125 |
|
|
134 |
|
|
231 |
|
Total interest income |
|
27,643 |
|
|
27,072 |
|
|
27,249 |
|
|
26,882 |
|
|
25,868 |
|
Interest expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
5,351 |
|
|
5,952 |
|
|
6,214 |
|
|
5,967 |
|
|
5,564 |
|
Borrowings |
|
849 |
|
|
1,292 |
|
|
1,615 |
|
|
1,652 |
|
|
1,731 |
|
Total interest expense |
|
6,200 |
|
|
7,244 |
|
|
7,829 |
|
|
7,619 |
|
|
7,295 |
|
Net interest income |
|
21,443 |
|
|
19,828 |
|
|
19,420 |
|
|
19,263 |
|
|
18,573 |
|
Provision for credit losses |
|
5,250 |
|
|
500 |
|
|
500 |
|
|
300 |
|
|
250 |
|
Net interest income after provision for credit losses |
|
16,193 |
|
|
19,328 |
|
|
18,920 |
|
|
18,963 |
|
|
18,323 |
|
Noninterest income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Insurance commissions |
|
7 |
|
|
90 |
|
|
40 |
|
|
606 |
|
|
1,174 |
|
Trust and wealth management fees |
|
665 |
|
|
734 |
|
|
632 |
|
|
612 |
|
|
586 |
|
Service charges on deposit accounts |
|
1,263 |
|
|
1,377 |
|
|
1,312 |
|
|
1,224 |
|
|
1,180 |
|
Bank card revenue |
|
933 |
|
|
906 |
|
|
924 |
|
|
893 |
|
|
814 |
|
Realized securities gains (losses) |
|
1,038 |
|
|
403 |
|
|
453 |
|
|
1,086 |
|
|
(3 |
) |
Gain on sale of Summit Insurance Services, LLC |
|
- |
|
|
- |
|
|
- |
|
|
1,906 |
|
|
- |
|
Bank owned life insurance income |
|
264 |
|
|
310 |
|
|
247 |
|
|
248 |
|
|
238 |
|
Other income |
|
332 |
|
|
584 |
|
|
151 |
|
|
235 |
|
|
241 |
|
Total noninterest income |
|
4,502 |
|
|
4,404 |
|
|
3,759 |
|
|
6,810 |
|
|
4,230 |
|
Noninterest expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
|
7,672 |
|
|
7,099 |
|
|
7,044 |
|
|
7,576 |
|
|
7,347 |
|
Net occupancy expense |
|
883 |
|
|
815 |
|
|
799 |
|
|
880 |
|
|
924 |
|
Equipment expense |
|
1,429 |
|
|
1,278 |
|
|
1,296 |
|
|
1,219 |
|
|
1,179 |
|
Professional fees |
|
387 |
|
|
412 |
|
|
388 |
|
|
475 |
|
|
403 |
|
Advertising and public relations |
|
152 |
|
|
214 |
|
|
177 |
|
|
155 |
|
|
153 |
|
Amortization of intangibles |
|
429 |
|
|
401 |
|
|
404 |
|
|
420 |
|
|
476 |
|
FDIC premiums |
|
165 |
|
|
- |
|
|
- |
|
|
88 |
|
|
- |
|
Bank card expense |
|
503 |
|
|
454 |
|
|
455 |
|
|
473 |
|
|
439 |
|
Foreclosed properties expense, net |
|
966 |
|
|
262 |
|
|
305 |
|
|
1,545 |
|
|
384 |
|
Merger-related expenses |
|
788 |
|
|
98 |
|
|
74 |
|
|
382 |
|
|
63 |
|
Other expenses |
|
1,625 |
|
|
2,126 |
|
|
1,864 |
|
|
2,116 |
|
|
2,492 |
|
Total noninterest expense |
|
14,999 |
|
|
13,159 |
|
|
12,806 |
|
|
15,329 |
|
|
13,860 |
|
Income before income taxes |
|
5,696 |
|
|
10,573 |
|
|
9,873 |
|
|
10,444 |
|
|
8,693 |
|
Income tax expense |
|
1,190 |
|
|
2,424 |
|
|
1,812 |
|
|
1,880 |
|
|
1,601 |
|
Net income |
$ |
4,506 |
|
$ |
8,149 |
|
$ |
8,061 |
|
$ |
8,564 |
|
$ |
7,092 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SUMMIT FINANCIAL GROUP, INC. (NASDAQ:
SMMF) |
|
|
|
|
|
Five Quarter Performance Summary
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
For the Quarter Ended |
|
3/31/2020 |
12/31/2019 |
9/30/2019 |
6/30/2019 |
3/31/2019 |
Per Share Data |
|
|
|
|
|
Earnings per common share |
|
|
|
|
|
Basic |
$ |
0.35 |
|
$ |
0.66 |
|
$ |
0.65 |
|
$ |
0.68 |
|
$ |
0.56 |
|
Diluted |
$ |
0.35 |
|
$ |
0.65 |
|
$ |
0.65 |
|
$ |
0.68 |
|
$ |
0.56 |
|
|
|
|
|
|
|
Cash dividends |
$ |
0.17 |
|
$ |
0.15 |
|
$ |
0.15 |
|
$ |
0.15 |
|
$ |
0.14 |
|
Dividend payout ratio |
|
49.1 |
% |
|
22.3 |
% |
|
23.0 |
% |
|
21.9 |
% |
|
25.0 |
% |
|
|
|
|
|
|
Average common shares outstanding |
|
|
|
|
|
Basic |
|
12,975,429 |
|
|
12,400,932 |
|
|
12,412,982 |
|
|
12,539,095 |
|
|
12,717,501 |
|
Diluted |
|
13,028,409 |
|
|
12,458,702 |
|
|
12,467,777 |
|
|
12,600,071 |
|
|
12,778,644 |
|
|
|
|
|
|
|
Common shares outstanding at period end |
|
12,920,244 |
|
|
12,408,542 |
|
|
12,400,804 |
|
|
12,449,986 |
|
|
12,661,528 |
|
|
|
|
|
|
|
Performance Ratios |
|
|
|
|
|
Return on average equity |
|
6.92 |
% |
|
13.32 |
% |
|
13.51 |
% |
|
14.62 |
% |
|
12.28 |
% |
Return on average tangible equity |
|
8.55 |
% |
|
15.25 |
% |
|
15.55 |
% |
|
17.02 |
% |
|
14.80 |
% |
Return on average assets |
|
0.73 |
% |
|
1.39 |
% |
|
1.41 |
% |
|
1.52 |
% |
|
1.27 |
% |
Net interest margin (A) |
|
3.76 |
% |
|
3.63 |
% |
|
3.63 |
% |
|
3.72 |
% |
|
3.66 |
% |
Efficiency ratio (B) |
|
51.41 |
% |
|
52.25 |
% |
|
52.91 |
% |
|
56.45 |
% |
|
56.63 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
3/31/2020 |
12/31/2019 |
9/30/2019 |
6/30/2019 |
3/31/2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks |
$ |
18,633 |
|
|
$ |
28,137 |
|
|
$ |
12,374 |
|
|
$ |
13,481 |
|
|
$ |
14,265 |
|
Interest bearing deposits other banks |
|
22,821 |
|
|
|
33,751 |
|
|
|
40,296 |
|
|
|
42,994 |
|
|
|
43,689 |
|
Securities |
|
305,045 |
|
|
|
276,355 |
|
|
|
265,347 |
|
|
|
269,920 |
|
|
|
297,126 |
|
Loans, net |
|
1,982,661 |
|
|
|
1,900,425 |
|
|
|
1,838,891 |
|
|
|
1,805,850 |
|
|
|
1,725,064 |
|
Property held for sale |
|
18,287 |
|
|
|
19,276 |
|
|
|
20,979 |
|
|
|
21,390 |
|
|
|
24,393 |
|
Premises and equipment, net |
|
47,078 |
|
|
|
44,168 |
|
|
|
43,592 |
|
|
|
42,896 |
|
|
|
39,345 |
|
Goodwill and other intangible assets |
|
34,132 |
|
|
|
23,022 |
|
|
|
23,182 |
|
|
|
23,585 |
|
|
|
29,349 |
|
Cash surrender value of life insurance policies |
|
46,497 |
|
|
|
43,603 |
|
|
|
43,216 |
|
|
|
42,976 |
|
|
|
42,714 |
|
Other assets |
|
38,168 |
|
|
|
34,755 |
|
|
|
35,732 |
|
|
|
36,022 |
|
|
|
33,696 |
|
Total assets |
$ |
2,513,322 |
|
|
$ |
2,403,492 |
|
|
$ |
2,323,609 |
|
|
$ |
2,299,114 |
|
|
$ |
2,249,641 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
$ |
2,044,914 |
|
|
$ |
1,913,237 |
|
|
$ |
1,832,285 |
|
|
$ |
1,797,493 |
|
|
$ |
1,789,032 |
|
Short-term borrowings |
|
161,745 |
|
|
|
199,345 |
|
|
|
206,694 |
|
|
|
225,343 |
|
|
|
186,292 |
|
Long-term borrowings and subordinated debentures |
|
20,301 |
|
|
|
20,306 |
|
|
|
20,311 |
|
|
|
20,315 |
|
|
|
20,319 |
|
Other liabilities |
|
30,337 |
|
|
|
22,840 |
|
|
|
21,897 |
|
|
|
20,262 |
|
|
|
20,368 |
|
Shareholders' equity |
|
256,025 |
|
|
|
247,764 |
|
|
|
242,422 |
|
|
|
235,701 |
|
|
|
233,630 |
|
Total liabilities and shareholders' equity |
$ |
2,513,322 |
|
|
$ |
2,403,492 |
|
|
$ |
2,323,609 |
|
|
$ |
2,299,114 |
|
|
$ |
2,249,641 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Book value per common share |
$ |
19.82 |
|
|
$ |
19.97 |
|
|
$ |
19.55 |
|
|
$ |
18.93 |
|
|
$ |
18.45 |
|
Tangible book value per common
share |
$ |
17.17 |
|
|
$ |
18.11 |
|
|
$ |
17.68 |
|
|
$ |
17.04 |
|
|
$ |
16.13 |
|
Tangible common equity to
tangible assets |
|
9.0 |
% |
|
|
9.4 |
% |
|
|
9.5 |
% |
|
|
9.3 |
% |
|
|
9.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SUMMIT
FINANCIAL GROUP INC. (NASDAQ: SMMF) |
|
|
|
|
Regulatory Capital
Ratios (unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
3/31/2020 |
|
12/31/2019 |
|
9/30/2019 |
|
6/30/2019 |
|
3/31/2019 |
|
Summit Financial
Group, Inc. |
|
|
|
|
|
CET1 Risk-based Capital |
10.8 |
% |
11.1 |
% |
11.2 |
% |
11.1 |
% |
11.4 |
% |
Tier 1 Risk-based Capital |
11.7 |
% |
12.1 |
% |
12.2 |
% |
12.1 |
% |
12.5 |
% |
Total Risk-based Capital |
12.5 |
% |
12.7 |
% |
12.8 |
% |
12.8 |
% |
13.2 |
% |
Tier 1 Leverage |
10.2 |
% |
10.5 |
% |
10.4 |
% |
10.4 |
% |
10.2 |
% |
|
|
|
|
|
|
Summit Community Bank,
Inc. |
|
|
|
|
|
CET1 Risk-based Capital |
11.7 |
% |
12.1 |
% |
12.2 |
% |
11.9 |
% |
12.3 |
% |
Tier 1 Risk-based Capital |
11.7 |
% |
12.1 |
% |
12.2 |
% |
11.9 |
% |
12.3 |
% |
Total Risk-based Capital |
12.5 |
% |
12.7 |
% |
12.9 |
% |
12.6 |
% |
13.0 |
% |
Tier 1 Leverage |
10.2 |
% |
10.6 |
% |
10.4 |
% |
10.2 |
% |
10.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
SUMMIT
FINANCIAL GROUP INC. (NASDAQ: SMMF) |
|
|
|
Loan Composition
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
Dollars in thousands |
3/31/2020 |
12/31/2019 |
9/30/2019 |
6/30/2019 |
3/31/2019 |
|
|
|
|
|
|
Commercial |
$ |
224,659 |
|
$ |
207,138 |
|
$ |
199,391 |
|
$ |
204,138 |
|
$ |
189,248 |
Mortgage warehouse lines |
|
166,826 |
|
|
126,237 |
|
|
145,039 |
|
|
101,607 |
|
|
49,355 |
Commercial real estate |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Owner occupied |
|
331,486 |
|
|
276,218 |
|
|
255,828 |
|
|
262,901 |
|
|
256,671 |
Non-owner occupied |
|
580,619 |
|
|
629,206 |
|
|
567,670 |
|
|
574,677 |
|
|
585,809 |
Construction and development |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Land and development |
|
92,332 |
|
|
84,112 |
|
|
69,589 |
|
|
67,769 |
|
|
64,192 |
Construction |
|
43,121 |
|
|
37,523 |
|
|
56,255 |
|
|
46,975 |
|
|
36,040 |
Residential real estate |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-jumbo |
|
378,540 |
|
|
354,963 |
|
|
359,399 |
|
|
360,752 |
|
|
359,107 |
Jumbo |
|
64,944 |
|
|
70,947 |
|
|
69,815 |
|
|
70,171 |
|
|
69,313 |
Home equity |
|
75,170 |
|
|
76,568 |
|
|
78,493 |
|
|
81,373 |
|
|
80,370 |
Consumer |
|
36,611 |
|
|
36,470 |
|
|
36,982 |
|
|
36,715 |
|
|
36,046 |
Other |
|
12,961 |
|
|
14,117 |
|
|
13,371 |
|
|
11,924 |
|
|
12,045 |
Total loans, net of unearned fees |
|
2,007,269 |
|
|
1,913,499 |
|
|
1,851,832 |
|
|
1,819,002 |
|
|
1,738,196 |
Less allowance for credit
losses |
|
24,608 |
|
|
13,074 |
|
|
12,941 |
|
|
13,152 |
|
|
13,132 |
Loans, net |
$ |
1,982,661 |
|
$ |
1,900,425 |
|
$ |
1,838,891 |
|
$ |
1,805,850 |
|
$ |
1,725,064 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SUMMIT
FINANCIAL GROUP INC. (NASDAQ: SMMF) |
|
|
|
Deposit
Composition (unaudited) |
|
|
|
|
|
|
|
|
|
|
Dollars
in thousands |
3/31/2020 |
12/31/2019 |
9/30/2019 |
6/30/2019 |
3/31/2019 |
Core deposits |
|
|
|
|
|
Non-interest bearing checking |
$ |
337,446 |
|
$ |
260,553 |
|
$ |
241,999 |
|
$ |
234,397 |
|
$ |
258,679 |
Interest bearing checking |
|
648,214 |
|
|
630,352 |
|
|
602,059 |
|
|
588,948 |
|
|
560,800 |
Savings |
|
457,010 |
|
|
418,096 |
|
|
305,891 |
|
|
301,403 |
|
|
310,646 |
Time deposits |
|
384,062 |
|
|
373,125 |
|
|
371,178 |
|
|
365,275 |
|
|
359,141 |
Total core deposits |
|
1,826,732 |
|
|
1,682,126 |
|
|
1,521,127 |
|
|
1,490,023 |
|
|
1,489,266 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Brokered time deposits |
|
111,156 |
|
|
150,554 |
|
|
227,369 |
|
|
222,901 |
|
|
218,913 |
Other non-core time
deposits |
|
107,026 |
|
|
80,557 |
|
|
83,789 |
|
|
84,569 |
|
|
80,853 |
Total deposits |
$ |
2,044,914 |
|
$ |
1,913,237 |
|
$ |
1,832,285 |
|
$ |
1,797,493 |
|
$ |
1,789,032 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SUMMIT
FINANCIAL GROUP, INC. (NASDAQ: SMMF) |
|
|
|
|
Asset Quality
Information (unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
For the Quarter Ended |
Dollars in thousands |
3/31/2020 |
12/31/2019 |
9/30/2019 |
6/30/2019 |
3/31/2019 |
|
|
|
|
|
|
Gross loan charge-offs |
$ |
698 |
|
|
$ |
455 |
|
|
$ |
843 |
|
|
$ |
391 |
|
|
$ |
414 |
|
Gross loan recoveries |
|
(197 |
) |
|
|
(88 |
) |
|
|
(132 |
) |
|
|
(111 |
) |
|
|
(249 |
) |
Net loan charge-offs |
$ |
501 |
|
|
$ |
367 |
|
|
$ |
711 |
|
|
$ |
280 |
|
|
$ |
165 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loan charge-offs to average loans (annualized) |
|
0.10 |
% |
|
|
0.08 |
% |
|
|
0.16 |
% |
|
|
0.06 |
% |
|
|
0.04 |
% |
Allowance for loan credit losses |
$ |
24,608 |
|
|
$ |
13,074 |
|
|
$ |
12,941 |
|
|
$ |
13,152 |
|
|
$ |
13,132 |
|
Allowance for loan credit losses as a percentage of period end
loans |
|
1.23 |
% |
|
|
0.68 |
% |
|
|
0.70 |
% |
|
|
0.72 |
% |
|
|
0.76 |
% |
Nonperforming assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming loans |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial |
$ |
560 |
|
|
$ |
764 |
|
|
$ |
835 |
|
|
$ |
948 |
|
|
$ |
729 |
|
Commercial real estate |
|
5,644 |
|
|
|
5,800 |
|
|
|
7,037 |
|
|
|
6,544 |
|
|
|
2,981 |
|
Residential construction and development |
|
11 |
|
|
|
326 |
|
|
|
191 |
|
|
|
66 |
|
|
|
24 |
|
Residential real estate |
|
4,343 |
|
|
|
4,404 |
|
|
|
4,461 |
|
|
|
5,657 |
|
|
|
5,928 |
|
Consumer |
|
65 |
|
|
|
116 |
|
|
|
115 |
|
|
|
160 |
|
|
|
182 |
|
Other |
|
100 |
|
|
|
100 |
|
|
|
100 |
|
|
|
100 |
|
|
|
130 |
|
Total nonperforming loans |
|
10,723 |
|
|
|
11,510 |
|
|
|
12,739 |
|
|
|
13,475 |
|
|
|
9,974 |
|
Foreclosed properties |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate |
|
1,866 |
|
|
|
1,930 |
|
|
|
1,514 |
|
|
|
1,544 |
|
|
|
1,841 |
|
Commercial construction and development |
|
4,511 |
|
|
|
4,601 |
|
|
|
4,909 |
|
|
|
4,910 |
|
|
|
6,326 |
|
Residential construction and development |
|
10,774 |
|
|
|
11,169 |
|
|
|
12,847 |
|
|
|
13,132 |
|
|
|
14,347 |
|
Residential real estate |
|
1,136 |
|
|
|
1,576 |
|
|
|
1,709 |
|
|
|
1,804 |
|
|
|
1,879 |
|
Total foreclosed properties |
|
18,287 |
|
|
|
19,276 |
|
|
|
20,979 |
|
|
|
21,390 |
|
|
|
24,393 |
|
Other repossessed assets |
|
49 |
|
|
|
17 |
|
|
|
16 |
|
|
|
12 |
|
|
|
34 |
|
Total nonperforming assets |
$ |
29,059 |
|
|
$ |
30,803 |
|
|
$ |
33,734 |
|
|
$ |
34,877 |
|
|
$ |
34,401 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming loans to period end loans |
|
0.53 |
% |
|
|
0.60 |
% |
|
|
0.69 |
% |
|
|
0.74 |
% |
|
|
0.57 |
% |
Nonperforming assets to period end assets |
|
1.16 |
% |
|
|
1.28 |
% |
|
|
1.45 |
% |
|
|
1.52 |
% |
|
|
1.53 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Troubled debt restructurings |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performing |
$ |
22,966 |
|
|
$ |
23,339 |
|
|
$ |
23,420 |
|
|
$ |
23,266 |
|
|
$ |
27,845 |
|
Nonperforming |
|
2,831 |
|
|
|
2,337 |
|
|
|
2,443 |
|
|
|
2,915 |
|
|
|
- |
|
Total troubled debt restructurings |
$ |
25,797 |
|
|
$ |
25,676 |
|
|
$ |
25,863 |
|
|
$ |
26,181 |
|
|
$ |
27,845 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans Past Due 30-89
Days (unaudited) |
|
|
|
|
|
|
For the Quarter Ended |
Dollars in thousands |
3/31/2020 |
12/31/2019 |
9/30/2019 |
6/30/2019 |
3/31/2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial |
$ |
160 |
|
$ |
111 |
|
$ |
390 |
|
$ |
375 |
|
$ |
264 |
Commercial real estate |
|
2,106 |
|
|
1,196 |
|
|
312 |
|
|
1,719 |
|
|
4,128 |
Construction and development |
|
53 |
|
|
236 |
|
|
65 |
|
|
235 |
|
|
179 |
Residential real estate |
|
5,178 |
|
|
4,775 |
|
|
5,573 |
|
|
5,670 |
|
|
2,944 |
Consumer |
|
222 |
|
|
269 |
|
|
365 |
|
|
234 |
|
|
432 |
Other |
|
7 |
|
|
25 |
|
|
63 |
|
|
9 |
|
|
52 |
Total |
$ |
7,726 |
|
$ |
6,612 |
|
$ |
6,768 |
|
$ |
8,242 |
|
$ |
7,999 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SUMMIT
FINANCIAL GROUP, INC. (NASDAQ: SMMF) |
|
|
|
|
|
|
|
|
|
Average
Balance Sheet, Interest Earnings & Expenses and Average
Rates |
|
|
|
|
|
|
Q1 2020 vs
Q4 2019 vs Q1 2019 (unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q1 2020 |
|
Q4 2019 |
|
Q1 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 |
$ |
1,935,473 |
|
|
$ |
25,089 |
|
5.21 |
% |
|
$ |
1,853,197 |
|
|
$ |
24,622 |
|
5.27 |
% |
|
$ |
1,712,286 |
|
|
$ |
22,907 |
|
5.43 |
% |
Tax-exempt (2) |
|
14,873 |
|
|
|
185 |
|
5.00 |
% |
|
|
15,738 |
|
|
|
189 |
|
4.76 |
% |
|
|
14,907 |
|
|
|
184 |
|
5.01 |
% |
Securities |
|
|
|
|
|
|
|
|
|
|
|
Taxable |
|
258,889 |
|
|
|
1,757 |
|
2.73 |
% |
|
|
218,375 |
|
|
|
1,654 |
|
3.00 |
% |
|
|
195,932 |
|
|
|
1,687 |
|
3.49 |
% |
Tax-exempt (2) |
|
70,239 |
|
|
|
699 |
|
4.00 |
% |
|
|
69,276 |
|
|
|
686 |
|
3.93 |
% |
|
|
114,831 |
|
|
|
1,139 |
|
4.02 |
% |
Interest bearing deposits other banks and Federal funds sold |
|
35,648 |
|
|
|
98 |
|
1.11 |
% |
|
|
32,779 |
|
|
|
105 |
|
1.27 |
% |
|
|
51,187 |
|
|
|
230 |
|
1.82 |
% |
Total interest earning
assets |
|
2,315,122 |
|
|
|
27,828 |
|
4.83 |
% |
|
|
2,189,365 |
|
|
|
27,256 |
|
4.94 |
% |
|
|
2,089,143 |
|
|
|
26,147 |
|
5.08 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest earning
assets |
|
|
|
|
|
|
|
|
|
|
|
Cash & due from banks |
|
14,422 |
|
|
|
|
|
12,932 |
|
|
|
|
|
12,825 |
|
|
|
Premises & equipment |
|
46,151 |
|
|
|
|
|
44,136 |
|
|
|
|
|
38,404 |
|
|
|
Other assets |
|
120,846 |
|
|
|
|
|
103,481 |
|
|
|
|
|
113,340 |
|
|
|
Allowance for credit losses |
|
(20,452 |
) |
|
|
|
|
(13,055 |
) |
|
|
|
|
(13,309 |
) |
|
|
Total assets |
$ |
2,476,089 |
|
|
|
|
$ |
2,336,859 |
|
|
|
|
$ |
2,240,403 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
Interest bearing
liabilities |
|
|
|
|
|
|
|
|
|
|
|
Interest bearing demand deposits |
$ |
643,955 |
|
|
$ |
1,081 |
|
0.68 |
% |
|
$ |
619,939 |
|
|
$ |
1,378 |
|
0.88 |
% |
|
$ |
556,766 |
|
|
$ |
1,663 |
|
1.21 |
% |
Savings deposits |
|
449,021 |
|
|
|
1,337 |
|
1.20 |
% |
|
|
351,653 |
|
|
|
1,201 |
|
1.35 |
% |
|
|
310,848 |
|
|
|
898 |
|
1.17 |
% |
Time deposits |
|
615,102 |
|
|
|
2,933 |
|
1.92 |
% |
|
|
641,160 |
|
|
|
3,373 |
|
2.09 |
% |
|
|
654,404 |
|
|
|
3,003 |
|
1.86 |
% |
Short-term borrowings |
|
119,607 |
|
|
|
630 |
|
2.12 |
% |
|
|
188,007 |
|
|
|
1,062 |
|
2.24 |
% |
|
|
200,297 |
|
|
|
1,472 |
|
2.98 |
% |
Long-term borrowings and subordinated debentures |
|
20,304 |
|
|
|
219 |
|
4.34 |
% |
|
|
20,308 |
|
|
|
230 |
|
4.49 |
% |
|
|
20,321 |
|
|
|
259 |
|
5.17 |
% |
Total interest bearing
liabilities |
|
1,847,989 |
|
|
|
6,200 |
|
1.35 |
% |
|
|
1,821,067 |
|
|
|
7,244 |
|
1.58 |
% |
|
|
1,742,636 |
|
|
|
7,295 |
|
1.70 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest bearing
liabilities |
|
|
|
|
|
|
|
|
|
|
|
Demand deposits |
|
339,340 |
|
|
|
|
|
248,159 |
|
|
|
|
|
248,354 |
|
|
|
Other liabilities |
|
28,400 |
|
|
|
|
|
22,856 |
|
|
|
|
|
18,322 |
|
|
|
Total liabilities |
|
2,215,729 |
|
|
|
|
|
2,092,082 |
|
|
|
|
|
2,009,312 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders' equity |
|
260,360 |
|
|
|
|
|
244,777 |
|
|
|
|
|
231,091 |
|
|
|
Total liabilities and shareholders' equity |
$ |
2,476,089 |
|
|
|
|
$ |
2,336,859 |
|
|
|
|
$ |
2,240,403 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INTEREST
EARNINGS |
|
|
$ |
21,628 |
|
|
|
|
$ |
20,012 |
|
|
|
|
$ |
18,852 |
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INTEREST
MARGIN |
|
|
|
3.76 |
% |
|
|
|
|
3.63 |
% |
|
|
|
|
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% for all periods presented. The tax
equivalent adjustment resulted in an increase in interest income of
$185,000, $184,000, and $279,000 for Q1 2020, Q4 2019 and Q1
2019, respectively.
Contact:Telephone:Email: |
|
Robert S. Tissue, Executive Vice President & CFO(304)
530-0552rtissue@summitfgi.com |
|
|
|
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