Summit Financial Group, Inc. (“Company” or “Summit”) (NASDAQ:
SMMF) today reported strong financial results for the third quarter
of 2021, including growth in earnings, net interest income,
revenue, and commercial and total loans, as well as further asset
quality improvement and expense discipline.
The Company, which serves commercial and individual clients
across West Virginia, the Washington, D.C. metropolitan area,
Virginia, and Kentucky through Summit Community Bank, Inc., grew
third quarter 2021 net income applicable to common shares to $12.0
million, or $0.92 per diluted share. Earnings increased 15.3
percent from $10.4 million, or $0.80 per diluted share, in the
second quarter of 2021 and 24.9 percent from $9.6 million, or $0.74
per share, in the third quarter of 2020. For the nine months ended
September 30, 2021, Summit grew earnings by 55.6 percent to $32.8
million, or $2.52 per share, from $21.1 million, or $1.62 per
share, for the comparable 2020 nine-month period.
“With the significant increases in commercial and total loans
achieved in the third quarter, a vibrant business pipeline, and
Summit’s ability to retain and attract some of the top business
bankers and other producers across all our markets, we are poised
to continue generating sustainable loan growth in the recovering
economy,” said H. Charles Maddy, III, President and Chief Executive
Officer. “Third quarter results also reflected continued progress
on key asset quality metrics, as well as how we’re well positioned
to consistently leverage our low-cost operating model to profitably
grow our balance sheet, as well as the top line.”
Highlights for Q3 2021
- Total loans,
excluding mortgage warehouse lines of credit and Paycheck
Protection Program (“PPP”) lending, increased 3.7 percent (14.8
percent annualized) during the quarter, which included $54 million
acquired loans, 13.6 percent (18.2 percent annualized) year-to-date
and 24.0 percent since September 30, 2020.
- Commercial loans
excluding PPP lending increased 7.2 percent (28.9 percent
annualized) during the quarter, 23.7 percent (31.5 percent
annualized) year-to-date and 32.5 percent since September 30,
2020.
- Net interest income
increased 4.6 percent from the linked quarter and 13.2 percent from
the year-ago period, primarily due to loan growth and lower funding
costs.
- Net interest margin
(“NIM”) decreased 8 basis points to 3.47 percent from the linked
quarter, as yield on interest earning assets decreased 15 basis
points while the cost of deposits and other funding declined 8
basis points. Summit remains well positioned for a rising rate
environment.
- Revenue from net
interest income and noninterest income, excluding securities gains
and losses, grew 4.1 percent from the linked quarter and 10.9
percent from the year-ago quarter.
- Achieved an
efficiency ratio of 49.73 percent and lowered annualized
non-interest expense to 2.01 percent of average assets.
- Reduced property
held for sale by 5.5 percent during the quarter and 30.2 percent
from September 30, 2020.
- Reduced
nonperforming assets (“NPAs”) to 0.67 percent of total assets,
excluding restructured assets, down 43 basis points during the
quarter and 27 basis points from September 30, 2020.
- Summit’s asset
quality and mix of new loans required no provision for credit
losses in the quarter; period-end allowance for loan credit losses
equaled $32.4 million, or 1.27 percent of total loans and 291.6
percent of nonperforming loans.
- As previously
announced in July, completed the acquisition of substantially all
of MVB Bank’s southern West Virginia community banking operations,
including four full-service branches and two drive-up locations in
and around the state’s largest cities of Charleston and
Huntington.
Results from Operations
Net interest income grew to $28.0 million in the third quarter
of 2021, an increase of 4.6 percent from the linked quarter and
13.2 percent from the prior-year third quarter. NIM for third
quarter of 2021 was 3.47 percent compared to 3.55 percent for the
linked quarter and 3.64 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 3.41 percent for the third quarter of 2021, 3.50 percent for
the linked quarter and 3.59 percent for the year-ago period.
Noninterest income, consisting primarily of service fee income
from community banking activities and trust and wealth management
fees, for third quarter 2021 was $4.6 million compared to $4.7
million for the linked quarter and $6.2 million for the comparable
period of 2020. The Company recorded securities losses of $68,000
in the third quarter of 2021 and gains of $127,000 and $1.5 million
in the linked and year-ago quarters, respectively. Excluding
securities gains and losses, noninterest income was $4.6 million in
each of the third and second quarters of 2021 and $4.7 million in
the year-ago quarter.
Mortgage origination revenue was $742,000 in the third quarter
of 2021 compared to $898,000 for the linked quarter and $780,000
for the year-ago period. Year to date, mortgage origination revenue
grew to $2.6 million, increasing 61.2 percent from the first nine
months of 2020.
Revenue from net interest income and noninterest income,
excluding securities gains and losses, grew to $32.7 million, up
4.1 percent from $31.4 million in the linked quarter and 10.9
percent from $29.5 million in the year-ago quarter. Revenue,
excluding securities gains, for the first nine months of 2021, grew
to $94.8 million, up 17.0 percent from the first nine months of
2020 and outpacing the 11.2 percent noninterest expense increase
recorded for the comparable nine-month periods.
Total noninterest expense increased to $17.3 million in the
third quarter of 2021, up 1.8 percent from $17.0 million in the
linked quarter and 11.8 percent from $15.5 million for the
prior-year third quarter, reflecting acquisition-related expenses
primarily from Summit’s recently completed branch acquisitions, as
well as ongoing operating costs for its December 2020 purchase of
Kentucky’s WinFirst Bank.
Salary and benefit expenses of $8.7 million in the third quarter
of 2021 increased from $8.2 million in the linked quarter, while
acquisitions closed in December 2020 and July 2021 contributed to
an increase from $7.9 million in the year-ago period.
Additionally, other significant factors contributing to the
changes in total noninterest expense in the third quarter of 2021
were: equipment expense of $1.9 million compared to $1.6 million
for the linked quarter and $1.5 million for the year-ago period,
FDIC assessments of $354,000 compared to $488,000 for the linked
quarter and $320,000 for the year-ago period, as well as foreclosed
properties expense of $370,000 compared to $746,000 in the linked
quarter and $607,000 in the year-ago period.
Summit’s efficiency ratio was 49.73 percent in the third quarter
of 2021 compared to 49.09 percent in the linked quarter and 48.95
percent for the year-ago period. Non-interest expense improved to
2.01 percent of average assets in the third quarter of 2021,
compared to 2.09 percent during the linked quarter and 2.11 percent
in the year-ago period.
Balance Sheet
At September 30, 2021, total assets were $3.51 billion, an
increase of $402.6 million, or 13.0 percent since December 31,
2020.
Total loans net of unearned fees grew to $2.55 billion on
September 30, 2021, increasing 5.1 percent during the third
quarter, which included $54.4 million of loans in our branch
acquisitions, 5.9 percent year-to-date and 13.4 percent since
September 30, 2020. Excluding PPP and mortgage warehouse lending,
total loans grew to $2.37 billion on September 30, 2021, increasing
3.7 percent during the third quarter, 13.6 percent year-to-date and
24.0 percent since September 30, 2020.
Total commercial loans, including commercial and industrial
(C&I) and commercial real estate (CRE) and excluding PPP
lending, grew to $1.6 billion on September 30, 2021, increasing 7.2
percent during the third quarter, 23.7 percent year-to-date and
32.5 percent since September 30, 2020. Residential real estate and
consumer lending totaled $570.6 million on September 30, 2021, down
0.9 percent during the third quarter and 7.2 percent year-to-date,
while increasing 2.0 percent from September 30, 2020.
PPP balances paid down to $23.8 million on September 30, 2021
from a peak of $98.5 million on September 30, 2020. Mortgage
warehouse lines of credit, sourced solely from a participation
arrangement with a large regional bank, have paid down to $161.6
million on September 30, 2021 from a peak of $252.5 million on June
30, 2020.
Total deposits grew to $2.96 billion on September 30, 2021,
increasing 8.3 percent during the third quarter, which included
$164.0 million in deposits assumed in the acquisition of branches,
13.9 percent year-to-date and 20.6 percent since September 30,
2020. Core deposits grew to $2.86 billion on September 30, 2021,
increasing 8.8 percent during the third quarter, 16.3 percent
year-to-date and 24.2 percent since September 30, 2020.
Total shareholders’ equity was $323.3 million as of September
30, 2021 compared to $281.6 million at December 31, 2020. During
the second quarter of 2021, Summit raised $15.0 million in growth
capital through a previously disclosed private placement of 6%
Fixed-Rate Non-Cumulative Perpetual Preferred Stock.
Tangible book value per common share increased to $18.83 as of
September 30, 2021 compared to $17.50 at December 31, 2020 and
$17.31 at September 30, 2020. Summit had 12,976,693 outstanding
common shares at the end of the third quarter of 2021 compared to
12,942,004 at year-end 2020.
As announced in the first quarter of 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 the
third quarter of 2021, no shares of our common stock were
repurchased under the Plan.
Asset Quality
Net loan charge-offs (“NCOs”) were $370,000, or 0.06 percent of
average loans annualized, in the third quarter of 2021. NCOs of
$202,000 represented 0.03 percent of average loans annualized in
the linked quarter, and $1.0 million or 0.18 percent of average
loans annualized for third quarter 2020.
Summit’s asset quality and mix of new loans required no
provision for credit losses in the third quarter of 2021, while its
allowance for loan credit losses was $32.4 million, representing
1.27 percent of total loans and 291.6 percent of nonperforming
loans, as of September 30, 2021. The provision for credit losses
was $1.0 million and $3.25 million for the linked and year-ago
quarters, respectively. The allowance for loan credit losses stood
at $33.9 million or 1.39 percent of total loans on June 30, 2021
and $29.4 million or 1.30 percent at September 30, 2020. In support
of continued anticipated loan growth, Summit currently expects
provision expense of approximately $500,000 to $750,000 for reserve
build in the fourth quarter of 2021.
As of September 30, 2021, NPAs consisting of nonperforming
loans, foreclosed properties and repossessed assets, totaled $23.6
million, or 0.67 percent of assets, compared to $36.0 million, or
1.10 percent of assets at the linked quarter-end and $27.8 million,
or 0.94 percent of assets at the end of third quarter 2020. A loan
relationship totaling $9.5 million impacted by the COVID-19
pandemic and on nonaccrual at June 30, 2021 was restored to full
accrual status during the current quarter.
The aggregate balances of loans the Company has modified as
result of the COVID-19 pandemic continued to decline to $7.2
million or 0.3 percent of total loans on September 30, 2021, down
from $8.7 million, or 0.4 percent on June 30, 2021, as summarized
in the following table.
|
|
Loan Balances Modified Due to COVID-19 as of
9/30/2021 |
Dollars in thousands |
Total LoanBalance as of9/30/2021 |
Loans Modifiedto Interest OnlyPayments |
Loans Modifiedto PaymentDeferral |
Total LoansModified |
Percentageof LoansModified |
Hospitality Industry |
$ |
121,765 |
$ |
- |
$ |
- |
$ |
- |
0.0 |
% |
Non-Owner
Occupied Retail Stores |
|
154,120 |
|
7,223 |
|
- |
|
7,223 |
4.7 |
% |
Owner-Occupied Retail Stores |
|
163,350 |
|
- |
|
- |
|
- |
0.0 |
% |
Restaurants |
|
12,200 |
|
- |
|
- |
|
- |
0.0 |
% |
Oil &
Gas Industry |
|
18,657 |
|
- |
|
- |
|
- |
0.0 |
% |
Other
Commercial Loans |
|
1,349,187 |
|
- |
|
- |
|
- |
0.0 |
% |
Total Commercial Loans |
|
1,819,279 |
|
7,223 |
|
- |
|
7,223 |
0.4 |
% |
Residential
1-4 Family Personal |
|
270,951 |
|
- |
|
- |
|
- |
0.0 |
% |
Residential
1-4 Family Rentals |
|
195,914 |
|
- |
|
- |
|
- |
0.0 |
% |
Home Equity
Loans |
|
71,496 |
|
- |
|
- |
|
- |
0.0 |
% |
Total Residential Real Estate Loans |
|
538,361 |
|
- |
|
- |
|
- |
0.0 |
% |
Consumer
Loans |
|
32,285 |
|
- |
|
- |
|
- |
0.0 |
% |
Mortgage
Warehouse Loans |
|
161,627 |
|
- |
|
- |
|
- |
0.0 |
% |
Credit Cards and Overdrafts |
|
2,558 |
|
- |
|
- |
|
- |
0.0 |
% |
Total Loans |
$ |
2,554,110 |
$ |
7,223 |
$ |
- |
$ |
7,223 |
0.3 |
% |
About the Company
Summit Financial Group, Inc. is the $3.51 billion financial
holding company for Summit Community Bank, Inc. Its talented
bankers serve commercial and individual clients throughout West
Virginia, the Washington, D.C. metropolitan area, Virginia, and
Kentucky. Summit’s focus on in-market commercial lending and
providing other business banking services in dynamic markets is
designed to leverage its highly efficient operations and core
deposits in strong legacy locations. Residential and consumer
lending, trust and wealth management, and other retail financial
services are offered through convenient digital and mobile banking
platforms, including MySummit.bank, and 45 full-service branch
locations. More information on Summit Financial Group, Inc.
(NASDAQ: SMMF), headquartered in West Virginia’s Eastern Panhandle
in Moorefield, is available at SummitFGI.com.
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.
Contact: Robert S. Tissue, Executive Vice President &
CFOTelephone: (304) 530-0552Email: rtissue@summitfgi.com
SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF) |
|
|
Quarterly Performance Summary (unaudited) |
|
|
|
Q3 2021 vs Q3 2020 |
|
|
|
|
|
|
|
|
|
For the Quarter Ended |
Percent |
Dollars in thousands |
9/30/2021 |
9/30/2020 |
Change |
Statements of Income |
|
|
|
|
Interest
income |
|
|
|
|
Loans, including fees |
$ |
28,416 |
|
$ |
26,807 |
6.0 |
% |
|
Securities |
|
2,348 |
|
|
2,382 |
-1.4 |
% |
|
Other |
|
118 |
|
|
57 |
107.0 |
% |
|
Total interest income |
|
30,882 |
|
|
29,246 |
5.6 |
% |
|
Interest
expense |
|
|
|
|
Deposits |
|
1,832 |
|
|
3,552 |
-48.4 |
% |
|
Borrowings |
|
1,013 |
|
|
928 |
9.2 |
% |
|
Total
interest expense |
|
2,845 |
|
|
4,480 |
-36.5 |
% |
|
Net interest
income |
|
28,037 |
|
|
24,766 |
13.2 |
% |
|
Provision
for credit losses |
|
- |
|
|
3,250 |
n/m |
|
|
Net interest
income after provision |
|
|
|
|
for credit losses |
|
28,037 |
|
|
21,516 |
30.3 |
% |
|
|
|
|
|
|
Noninterest
income |
|
|
|
|
Trust and wealth management fees |
|
718 |
|
|
622 |
15.4 |
% |
|
Mortgage origination revenue |
|
742 |
|
|
780 |
-4.9 |
% |
|
Service charges on deposit accounts |
|
1,338 |
|
|
1,138 |
17.6 |
% |
|
Bank card revenue |
|
1,509 |
|
|
1,237 |
22.0 |
% |
|
Realized securities gains (losses) |
|
(68 |
) |
|
1,522 |
-104.5 |
% |
|
Bank owned life insurance and annuity income |
|
160 |
|
|
795 |
-79.9 |
% |
|
Other income |
|
168 |
|
|
113 |
48.7 |
% |
|
Total
noninterest income |
|
4,567 |
|
|
6,207 |
-26.4 |
% |
|
Noninterest
expense |
|
|
|
|
Salaries and employee benefits |
|
8,745 |
|
|
7,869 |
11.1 |
% |
|
Net occupancy expense |
|
1,254 |
|
|
1,057 |
18.6 |
% |
|
Equipment expense |
|
1,908 |
|
|
1,474 |
29.4 |
% |
|
Professional fees |
|
374 |
|
|
364 |
2.7 |
% |
|
Advertising and public relations |
|
254 |
|
|
145 |
75.2 |
% |
|
Amortization of intangibles |
|
390 |
|
|
412 |
-5.3 |
% |
|
FDIC premiums |
|
354 |
|
|
320 |
10.6 |
% |
|
Bank card expense |
|
705 |
|
|
589 |
19.7 |
% |
|
Foreclosed properties expense, net |
|
370 |
|
|
607 |
-39.0 |
% |
|
Acquisition-related expense |
|
273 |
|
|
28 |
875.0 |
% |
|
Other expenses |
|
2,716 |
|
|
2,644 |
2.7 |
% |
|
Total
noninterest expense |
|
17,343 |
|
|
15,509 |
11.8 |
% |
|
Income
before income taxes |
|
15,261 |
|
|
12,214 |
24.9 |
% |
|
Income
taxes |
|
3,023 |
|
|
2,594 |
16.5 |
% |
|
Net
income |
|
12,238 |
|
|
9,620 |
27.2 |
% |
|
Preferred
stock dividends |
|
225 |
|
|
- |
n/a |
|
|
|
|
|
|
|
Net income
applicable to common shares |
$ |
12,013 |
|
$ |
9,620 |
24.9 |
% |
SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF) |
|
|
Quarterly Performance Summary (unaudited) |
|
|
|
Q3 2021 vs Q3 2020 |
|
|
|
|
|
|
|
|
|
For the Quarter Ended |
Percent |
|
|
9/30/2021 |
9/30/2020 |
Change |
Per Share Data |
|
|
|
|
Earnings per
common share |
|
|
|
|
Basic |
$ |
0.93 |
|
$ |
0.74 |
|
25.7 |
% |
|
Diluted |
$ |
0.92 |
|
$ |
0.74 |
|
24.3 |
% |
|
|
|
|
|
|
Cash
dividends per common share |
$ |
0.18 |
|
$ |
0.17 |
|
5.9 |
% |
|
Common stock
dividend payout ratio |
|
19.1 |
% |
|
22.9 |
% |
-16.6 |
% |
|
|
|
|
|
|
Average
common shares outstanding |
|
|
|
|
Basic |
|
12,964,575 |
|
|
12,922,158 |
|
0.3 |
% |
|
Diluted |
|
13,018,672 |
|
|
12,949,584 |
|
0.5 |
% |
|
|
|
|
|
|
Common
shares outstanding at period end |
|
12,976,693 |
|
|
12,932,415 |
|
0.3 |
% |
|
|
|
|
|
Performance Ratios |
|
|
|
|
Return on
average equity |
|
15.30 |
% |
|
14.38 |
% |
6.4 |
% |
|
Return on
average tangible equity (C) |
|
19.51 |
% |
|
18.12 |
% |
7.7 |
% |
|
Return on
average tangible common equity (D) |
|
20.71 |
% |
|
18.12 |
% |
14.3 |
% |
|
Return on
average assets |
|
1.42 |
% |
|
1.31 |
% |
8.4 |
% |
|
Net interest
margin (A) |
|
3.47 |
% |
|
3.64 |
% |
-4.7 |
% |
|
Efficiency
ratio (B) |
|
49.73 |
% |
|
48.95 |
% |
1.6 |
% |
|
|
|
|
|
NOTES
(A) – Presented on a tax-equivalent basis assuming
a federal tax rate of 21%.
(B) – Computed on a tax equivalent basis excluding
acquisition-related expenses, gains/losses on sales of assets,
write-downs of OREO properties to fair value and amortization of
intangibles.
(C) – Return on average tangible equity = (Net income –
Amortization of intangibles [after-tax]) / (Average shareholders’
equity – Average intangible assets).
(D) – Return on average tangible common equity = (Net income –
Amortization of intangibles [after-tax]) / (Average common
shareholders’ equity – Average intangible assets).
SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF) |
|
|
Nine Month Performance Summary (unaudited) |
|
|
|
2021 vs 2020 |
|
|
|
|
|
|
|
|
|
|
For the Nine Months Ended |
Percent |
Dollars in thousands |
9/30/2021 |
9/30/2020 |
Change |
Statements of Income |
|
|
|
|
Interest
income |
|
|
|
|
Loans, including fees |
$ |
83,651 |
|
$ |
77,666 |
|
7.7 |
% |
|
Securities |
|
6,707 |
|
|
6,944 |
|
-3.4 |
% |
|
Other |
|
240 |
|
|
216 |
|
11.1 |
% |
|
Total
interest income |
|
90,598 |
|
|
84,826 |
|
6.8 |
% |
|
Interest
expense |
|
|
|
|
Deposits |
|
6,464 |
|
|
13,088 |
|
-50.6 |
% |
|
Borrowings |
|
3,035 |
|
|
2,463 |
|
23.2 |
% |
|
Total interest expense |
|
9,499 |
|
|
15,551 |
|
-38.9 |
% |
|
Net interest
income |
|
81,099 |
|
|
69,275 |
|
17.1 |
% |
|
Provision
for credit losses |
|
2,500 |
|
|
11,500 |
|
n/m |
|
|
Net interest
income after provision |
|
|
|
|
for credit losses |
|
78,599 |
|
|
57,775 |
|
36.0 |
% |
|
|
|
|
|
|
Noninterest
income |
|
|
|
|
Trust and wealth management fees |
|
2,039 |
|
|
1,870 |
|
9.0 |
% |
|
Mortgage origination revenue |
|
2,638 |
|
|
1,636 |
|
61.2 |
% |
|
Service charges on deposit accounts |
|
3,530 |
|
|
3,283 |
|
7.5 |
% |
|
Bank card revenue |
|
4,369 |
|
|
3,257 |
|
34.1 |
% |
|
Realized securities gains |
|
534 |
|
|
2,560 |
|
-79.1 |
% |
|
Bank owned life insurance and annuity income |
|
733 |
|
|
1,334 |
|
-45.1 |
% |
|
Other income |
|
413 |
|
|
367 |
|
12.5 |
% |
|
Total
noninterest income |
|
14,256 |
|
|
14,307 |
|
-0.4 |
% |
|
Noninterest
expense |
|
|
|
|
Salaries and employee benefits |
|
25,410 |
|
|
23,709 |
|
7.2 |
% |
|
Net occupancy expense |
|
3,559 |
|
|
2,917 |
|
22.0 |
% |
|
Equipment expense |
|
5,088 |
|
|
4,263 |
|
19.4 |
% |
|
Professional fees |
|
1,140 |
|
|
1,168 |
|
-2.4 |
% |
|
Advertising and public relations |
|
482 |
|
|
389 |
|
23.9 |
% |
|
Amortization of intangibles |
|
1,176 |
|
|
1,251 |
|
-6.0 |
% |
|
FDIC premiums |
|
1,119 |
|
|
595 |
|
88.1 |
% |
|
Bank card expense |
|
1,964 |
|
|
1,652 |
|
18.9 |
% |
|
Foreclosed properties expense, net |
|
1,342 |
|
|
1,815 |
|
-26.1 |
% |
|
Acquisition-related expense |
|
1,167 |
|
|
1,453 |
|
-19.7 |
% |
|
Other expenses |
|
8,365 |
|
|
6,493 |
|
28.8 |
% |
|
Total
noninterest expense |
|
50,812 |
|
|
45,705 |
|
11.2 |
% |
|
Income
before income taxes |
|
42,043 |
|
|
26,377 |
|
59.4 |
% |
|
Income
taxes |
|
8,886 |
|
|
5,302 |
|
67.6 |
% |
|
Net
income |
|
33,157 |
|
|
21,075 |
|
57.3 |
% |
|
Preferred
stock dividends |
|
364 |
|
|
- |
|
n/a |
|
|
|
|
|
|
|
Net income
applicable to common shares |
$ |
32,793 |
|
$ |
21,075 |
|
55.6 |
% |
SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF) |
|
|
Nine Month Performance Summary (unaudited) |
|
|
|
2021 vs 2020 |
|
|
|
|
|
|
|
|
|
For the Nine Months Ended |
Percent |
|
|
9/30/2021 |
9/30/2020 |
Change |
Per Share Data |
|
|
|
|
Earnings per
common share |
|
|
|
|
Basic |
$ |
2.53 |
|
$ |
1.63 |
|
55.2 |
% |
|
Diluted |
$ |
2.52 |
|
$ |
1.62 |
|
55.6 |
% |
|
|
|
|
|
|
Cash
dividends per common share |
$ |
0.52 |
|
$ |
0.51 |
|
2.0 |
% |
|
Common stock
dividend payout ratio |
|
20.4 |
% |
|
31.4 |
% |
-35.1 |
% |
|
|
|
|
|
|
Average
common shares outstanding |
|
|
|
|
Basic |
|
12,953,053 |
|
|
12,934,401 |
|
0.1 |
% |
|
Diluted |
|
13,011,526 |
|
|
12,971,792 |
|
0.3 |
% |
|
|
|
|
|
|
Common
shares outstanding at period end |
|
12,976,693 |
|
|
12,932,415 |
|
0.3 |
% |
|
|
|
|
|
Performance Ratios |
|
|
|
|
Return on
average equity |
|
14.51 |
% |
|
10.72 |
% |
35.4 |
% |
|
Return on
average tangible equity (C) |
|
18.35 |
% |
|
13.36 |
% |
37.4 |
% |
|
Return on
average tangible common equity (D) |
|
19.03 |
% |
|
13.36 |
% |
42.4 |
% |
|
Return on
average assets |
|
1.34 |
% |
|
1.04 |
% |
28.8 |
% |
|
Net interest
margin (A) |
|
3.56 |
% |
|
3.69 |
% |
-3.5 |
% |
|
Efficiency
ratio (B) |
|
49.54 |
% |
|
50.70 |
% |
-2.3 |
% |
|
|
|
|
|
NOTES
(A) – Presented on a tax-equivalent basis assuming
a federal tax rate of 21%.
(B) – Computed on a tax equivalent basis excluding
acquisition-related expenses, gains/losses on sales of assets,
write-downs of OREO properties to fair value and amortization of
intangibles.
(C) – Return on average tangible equity = (Net income –
Amortization of intangibles [after-tax]) / (Average shareholders’
equity – Average intangible assets).
(D) – Return on average tangible common equity = (Net income –
Amortization of intangibles [after-tax]) / (Average common
shareholders’ equity – Average intangible assets).
SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF) |
|
|
|
|
Five Quarter Performance Summary (unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Quarter Ended |
Dollars in thousands |
9/30/2021 |
6/30/2021 |
3/31/2021 |
12/31/2020 |
9/30/2020 |
Statements of Income |
|
|
|
|
|
|
Interest
income |
|
|
|
|
|
|
Loans, including fees |
$ |
28,416 |
|
$ |
27,697 |
|
$ |
27,538 |
|
$ |
27,897 |
|
$ |
26,807 |
|
Securities |
|
2,348 |
|
|
2,202 |
|
|
2,157 |
|
|
2,228 |
|
|
2,382 |
|
Other |
|
118 |
|
|
56 |
|
|
67 |
|
|
51 |
|
|
57 |
|
Total
interest income |
|
30,882 |
|
|
29,955 |
|
|
29,762 |
|
|
30,176 |
|
|
29,246 |
|
Interest
expense |
|
|
|
|
|
|
Deposits |
|
1,832 |
|
|
2,136 |
|
|
2,496 |
|
|
2,956 |
|
|
3,552 |
|
Borrowings |
|
1,013 |
|
|
1,008 |
|
|
1,014 |
|
|
1,014 |
|
|
928 |
|
Total
interest expense |
|
2,845 |
|
|
3,144 |
|
|
3,510 |
|
|
3,970 |
|
|
4,480 |
|
Net
interest income |
|
28,037 |
|
|
26,811 |
|
|
26,252 |
|
|
26,206 |
|
|
24,766 |
|
Provision
for credit losses |
|
- |
|
|
1,000 |
|
|
1,500 |
|
|
3,000 |
|
|
3,250 |
|
Net interest
income after provision |
|
|
|
|
|
|
for credit losses |
|
28,037 |
|
|
25,811 |
|
|
24,752 |
|
|
23,206 |
|
|
21,516 |
|
Noninterest
income |
|
|
|
|
|
|
Trust and wealth management fees |
|
718 |
|
|
683 |
|
|
638 |
|
|
626 |
|
|
622 |
|
Mortgage origination revenue |
|
742 |
|
|
898 |
|
|
998 |
|
|
1,163 |
|
|
780 |
|
Service charges on deposit accounts |
|
1,338 |
|
|
1,093 |
|
|
1,100 |
|
|
1,305 |
|
|
1,138 |
|
Bank card revenue |
|
1,509 |
|
|
1,519 |
|
|
1,341 |
|
|
1,237 |
|
|
1,237 |
|
Realized securities gains (losses) |
|
(68 |
) |
|
127 |
|
|
476 |
|
|
912 |
|
|
1,522 |
|
Bank owned life insurance and annuity income |
|
160 |
|
|
275 |
|
|
298 |
|
|
233 |
|
|
795 |
|
Other income |
|
168 |
|
|
120 |
|
|
123 |
|
|
301 |
|
|
113 |
|
Total
noninterest income |
|
4,567 |
|
|
4,715 |
|
|
4,974 |
|
|
5,777 |
|
|
6,207 |
|
Noninterest
expense |
|
|
|
|
|
|
Salaries and employee benefits |
|
8,745 |
|
|
8,230 |
|
|
8,435 |
|
|
8,250 |
|
|
7,869 |
|
Net occupancy expense |
|
1,254 |
|
|
1,131 |
|
|
1,174 |
|
|
1,046 |
|
|
1,057 |
|
Equipment expense |
|
1,908 |
|
|
1,598 |
|
|
1,581 |
|
|
1,502 |
|
|
1,474 |
|
Professional fees |
|
374 |
|
|
428 |
|
|
338 |
|
|
370 |
|
|
364 |
|
Advertising and public relations |
|
254 |
|
|
138 |
|
|
90 |
|
|
207 |
|
|
145 |
|
Amortization of intangibles |
|
390 |
|
|
382 |
|
|
405 |
|
|
409 |
|
|
412 |
|
FDIC premiums |
|
354 |
|
|
488 |
|
|
277 |
|
|
261 |
|
|
320 |
|
Bank card expense |
|
705 |
|
|
685 |
|
|
573 |
|
|
573 |
|
|
589 |
|
Foreclosed properties expense, net |
|
370 |
|
|
746 |
|
|
227 |
|
|
676 |
|
|
607 |
|
Acquisition-related expenses |
|
273 |
|
|
454 |
|
|
440 |
|
|
218 |
|
|
28 |
|
Other expenses |
|
2,716 |
|
|
2,756 |
|
|
2,893 |
|
|
3,094 |
|
|
2,644 |
|
Total
noninterest expense |
|
17,343 |
|
|
17,036 |
|
|
16,433 |
|
|
16,606 |
|
|
15,509 |
|
Income
before income taxes |
|
15,261 |
|
|
13,490 |
|
|
13,293 |
|
|
12,377 |
|
|
12,214 |
|
Income tax
expense |
|
3,023 |
|
|
2,930 |
|
|
2,933 |
|
|
2,126 |
|
|
2,594 |
|
Net
income |
|
12,238 |
|
|
10,560 |
|
|
10,360 |
|
|
10,251 |
|
|
9,620 |
|
Preferred
stock dividends |
|
225 |
|
|
139 |
|
|
- |
|
|
- |
|
|
- |
|
|
|
|
|
|
|
|
Net income
applicable to common shares |
$ |
12,013 |
|
$ |
10,421 |
|
$ |
10,360 |
|
$ |
10,251 |
|
$ |
9,620 |
SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF) |
|
|
|
|
Five Quarter Performance Summary (unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Quarter Ended |
|
|
9/30/2021 |
6/30/2021 |
3/31/2021 |
12/31/2020 |
9/30/2020 |
Per Share Data |
|
|
|
|
|
|
Earnings per
common share |
|
|
|
|
|
|
Basic |
$ |
0.93 |
|
$ |
0.80 |
|
$ |
0.80 |
|
$ |
0.79 |
|
$ |
0.74 |
|
|
Diluted |
$ |
0.92 |
|
$ |
0.80 |
|
$ |
0.80 |
|
$ |
0.79 |
|
$ |
0.74 |
|
|
|
|
|
|
|
|
|
Cash
dividends per common share |
$ |
0.18 |
|
$ |
0.17 |
|
$ |
0.17 |
|
$ |
0.17 |
|
$ |
0.17 |
|
|
Common stock
dividend payout ratio |
|
19.1 |
% |
|
21.2 |
% |
|
20.6 |
% |
|
21.5 |
% |
|
22.9 |
% |
|
|
|
|
|
|
|
|
Average
common shares outstanding |
|
|
|
|
|
|
Basic |
|
12,964,575 |
|
|
12,952,357 |
|
|
12,942,099 |
|
|
12,932,768 |
|
|
12,922,158 |
|
|
Diluted |
|
13,018,672 |
|
|
13,013,714 |
|
|
13,002,062 |
|
|
12,980,041 |
|
|
12,949,584 |
|
|
|
|
|
|
|
|
|
Common
shares outstanding at period end |
|
12,976,693 |
|
|
12,963,057 |
|
|
12,950,714 |
|
|
12,942,004 |
|
|
12,932,415 |
|
|
|
|
|
|
|
|
Performance Ratios |
|
|
|
|
|
|
Return on
average equity |
|
15.30 |
% |
|
13.67 |
% |
|
14.51 |
% |
|
14.90 |
% |
|
14.38 |
% |
|
Return on
average tangible equity (C) |
|
19.51 |
% |
|
17.03 |
% |
|
18.49 |
% |
|
18.70 |
% |
|
18.12 |
% |
|
Return on
average tangible common equity (D) |
|
20.71 |
% |
|
17.59 |
% |
|
18.49 |
% |
|
18.70 |
% |
|
18.12 |
% |
|
Return on
average assets |
|
1.42 |
% |
|
1.29 |
% |
|
1.31 |
% |
|
1.37 |
% |
|
1.31 |
% |
|
Net interest
margin (A) |
|
3.47 |
% |
|
3.55 |
% |
|
3.65 |
% |
|
3.76 |
% |
|
3.64 |
% |
|
Efficiency
ratio (B) |
|
49.73 |
% |
|
49.09 |
% |
|
49.79 |
% |
|
49.38 |
% |
|
48.95 |
% |
NOTES
(A) – Presented on a tax-equivalent basis assuming
a federal tax rate of 21%.
(B) – Computed on a tax equivalent basis excluding
acquisition-related expenses, gains/losses on sales of assets,
write-downs of OREO properties to fair value and amortization of
intangibles.
(C) – Return on average tangible equity = (Net income –
Amortization of intangibles [after-tax]) / (Average shareholders’
equity – Average intangible assets).
(D) – Return on average tangible common equity = (Net income –
Amortization of intangibles [after-tax]) / (Average common
shareholders’ equity – Average intangible assets).
SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF) |
|
|
|
|
|
Selected Balance Sheet Data (unaudited) |
|
|
|
|
|
Dollars in thousands, except per share amounts |
9/30/2021 |
6/30/2021 |
3/31/2021 |
12/31/2020 |
9/30/2020 |
Assets |
|
|
|
|
|
|
Cash and due from banks |
$ |
21,247 |
|
|
$ |
18,707 |
|
|
$ |
20,732 |
|
|
$ |
19,522 |
|
|
$ |
16,257 |
|
|
Interest
bearing deposits other banks |
|
189,862 |
|
|
|
176,282 |
|
|
|
155,865 |
|
|
|
80,265 |
|
|
|
92,729 |
|
|
Debt
securities, available for sale |
|
424,741 |
|
|
|
345,742 |
|
|
|
311,384 |
|
|
|
286,127 |
|
|
|
297,989 |
|
|
Debt
securities, held to maturity |
|
98,528 |
|
|
|
98,995 |
|
|
|
99,457 |
|
|
|
99,914 |
|
|
|
91,600 |
|
|
Loans,
net |
|
2,521,704 |
|
|
|
2,395,885 |
|
|
|
2,418,029 |
|
|
|
2,379,907 |
|
|
|
2,222,450 |
|
|
Property
held for sale |
|
12,450 |
|
|
|
13,170 |
|
|
|
13,918 |
|
|
|
15,588 |
|
|
|
17,831 |
|
|
Premises and
equipment, net |
|
56,818 |
|
|
|
53,104 |
|
|
|
53,289 |
|
|
|
52,537 |
|
|
|
52,880 |
|
|
Goodwill and
other intangible assets |
|
63,977 |
|
|
|
53,858 |
|
|
|
54,239 |
|
|
|
55,123 |
|
|
|
48,101 |
|
|
Cash
surrender value of life insurance policies and annuities |
|
60,241 |
|
|
|
60,087 |
|
|
|
59,740 |
|
|
|
59,438 |
|
|
|
57,029 |
|
|
Other
assets |
|
59,383 |
|
|
|
56,703 |
|
|
|
61,482 |
|
|
|
57,963 |
|
|
|
49,996 |
|
|
Total
assets |
$ |
3,508,951 |
|
|
$ |
3,272,533 |
|
|
$ |
3,248,135 |
|
|
$ |
3,106,384 |
|
|
$ |
2,946,862 |
|
Liabilities and Shareholders' Equity |
|
|
|
|
|
|
Deposits |
$ |
2,955,940 |
|
|
$ |
2,729,205 |
|
|
$ |
2,725,010 |
|
|
$ |
2,595,651 |
|
|
$ |
2,451,891 |
|
|
Short-term
borrowings |
|
140,146 |
|
|
|
140,146 |
|
|
|
140,145 |
|
|
|
140,146 |
|
|
|
140,145 |
|
|
Long-term
borrowings and |
|
|
|
|
|
|
subordinated debentures |
|
49,739 |
|
|
|
49,710 |
|
|
|
49,681 |
|
|
|
49,652 |
|
|
|
50,292 |
|
|
Other
liabilities |
|
39,837 |
|
|
|
38,265 |
|
|
|
39,854 |
|
|
|
39,355 |
|
|
|
32,571 |
|
|
Shareholders' equity - preferred |
|
14,920 |
|
|
|
14,920 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
Shareholders' equity - common |
|
308,369 |
|
|
|
300,287 |
|
|
|
293,445 |
|
|
|
281,580 |
|
|
|
271,963 |
|
|
Total
liabilities and shareholders' equity |
$ |
3,508,951 |
|
|
$ |
3,272,533 |
|
|
$ |
3,248,135 |
|
|
$ |
3,106,384 |
|
|
$ |
2,946,862 |
|
|
|
|
|
|
|
|
|
Book value
per common share |
$ |
23.76 |
|
|
$ |
23.16 |
|
|
$ |
22.66 |
|
|
$ |
21.76 |
|
|
$ |
21.03 |
|
|
Tangible
book value per common share (A) |
$ |
18.83 |
|
|
$ |
19.01 |
|
|
$ |
18.47 |
|
|
$ |
17.50 |
|
|
$ |
17.31 |
|
|
Tangible
common equity to tangible assets (B) |
|
7.1 |
% |
|
|
7.7 |
% |
|
|
7.5 |
% |
|
|
7.4 |
% |
|
|
7.7 |
% |
NOTES(A) – Tangible book value per share = (Common
shareholders’ equity – Intangible assets) / Common shares
outstanding.(B) – Tangible common equity to tangible assets =
(Common shareholders’ equity – Intangible assets) / (Total assets –
Intangible assets).
SUMMIT FINANCIAL GROUP INC. (NASDAQ: SMMF) |
|
|
|
Regulatory Capital Ratios (unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
9/30/2021 |
6/30/2021 |
3/31/2021 |
12/31/2020 |
9/30/2020 |
Summit Financial Group, Inc. |
|
|
|
|
|
|
CET1 Risk-based Capital |
9.0 |
% |
9.6 |
% |
9.3 |
% |
9.3 |
% |
9.9 |
% |
|
Tier 1
Risk-based Capital |
10.2 |
% |
10.9 |
% |
10.1 |
% |
10.0 |
% |
10.7 |
% |
|
Total
Risk-based Capital |
12.1 |
% |
13.0 |
% |
12.1 |
% |
12.1 |
% |
12.9 |
% |
|
Tier 1
Leverage |
8.4 |
% |
8.9 |
% |
8.5 |
% |
8.6 |
% |
8.7 |
% |
|
|
|
|
|
|
|
Summit Community Bank, Inc. |
|
|
|
|
|
|
CET1
Risk-based Capital |
11.2 |
% |
11.9 |
% |
11.1 |
% |
11.1 |
% |
11.8 |
% |
|
Tier 1
Risk-based Capital |
11.2 |
% |
11.9 |
% |
11.1 |
% |
11.1 |
% |
11.8 |
% |
|
Total
Risk-based Capital |
12.1 |
% |
12.9 |
% |
12.0 |
% |
12.0 |
% |
12.7 |
% |
|
Tier 1
Leverage |
9.2 |
% |
9.7 |
% |
9.3 |
% |
9.5 |
% |
9.6 |
% |
|
|
|
|
|
|
|
SUMMIT FINANCIAL GROUP INC. (NASDAQ: SMMF) |
|
|
|
Loan Composition (unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
Dollars in thousands |
9/30/2021 |
6/30/2021 |
3/31/2021 |
12/31/2020 |
9/30/2020 |
|
|
|
|
|
|
|
Commercial |
|
$ |
317,855 |
|
$ |
326,468 |
|
$ |
348,022 |
|
$ |
306,885 |
|
$ |
350,985 |
Mortgage warehouse lines |
|
161,628 |
|
|
105,288 |
|
|
187,995 |
|
|
251,810 |
|
|
243,730 |
Commercial real estate |
|
|
|
|
|
Owner occupied |
|
439,202 |
|
|
392,164 |
|
|
358,200 |
|
|
351,860 |
|
|
312,502 |
Non-owner occupied |
|
835,071 |
|
|
784,415 |
|
|
735,594 |
|
|
685,565 |
|
|
618,624 |
Construction and development |
|
|
|
|
|
Land and development |
|
99,718 |
|
|
102,670 |
|
|
106,312 |
|
|
107,342 |
|
|
97,343 |
Construction |
|
127,432 |
|
|
140,788 |
|
|
126,011 |
|
|
91,100 |
|
|
66,878 |
Residential real estate |
|
|
|
|
|
Conventional |
|
394,889 |
|
|
398,239 |
|
|
411,103 |
|
|
425,519 |
|
|
368,009 |
Jumbo |
|
|
71,977 |
|
|
71,694 |
|
|
65,851 |
|
|
74,185 |
|
|
73,836 |
Home equity |
|
71,496 |
|
|
72,956 |
|
|
77,684 |
|
|
81,588 |
|
|
82,991 |
Consumer |
|
|
32,284 |
|
|
32,732 |
|
|
32,924 |
|
|
33,906 |
|
|
34,655 |
Other |
|
|
2,558 |
|
|
2,356 |
|
|
2,375 |
|
|
2,393 |
|
|
2,251 |
Total loans, net of unearned fees |
|
2,554,110 |
|
|
2,429,770 |
|
|
2,452,071 |
|
|
2,412,153 |
|
|
2,251,804 |
Less allowance for credit losses |
|
32,406 |
|
|
33,885 |
|
|
34,042 |
|
|
32,246 |
|
|
29,354 |
Loans, net |
$ |
2,521,704 |
|
$ |
2,395,885 |
|
$ |
2,418,029 |
|
$ |
2,379,907 |
|
$ |
2,222,450 |
|
|
|
|
|
|
|
SUMMIT FINANCIAL GROUP INC. (NASDAQ: SMMF) |
|
|
|
Deposit Composition (unaudited) |
|
|
|
|
|
|
|
|
|
|
|
Dollars in thousands |
|
9/30/2021 |
6/30/2021 |
3/31/2021 |
12/31/2020 |
9/30/2020 |
Core
deposits |
|
|
|
|
|
|
Non-interest bearing checking |
$ |
575,542 |
|
$ |
503,097 |
|
$ |
505,264 |
|
$ |
440,819 |
|
$ |
420,070 |
Interest bearing checking |
|
1,121,028 |
|
|
1,005,725 |
|
|
988,204 |
|
|
934,185 |
|
|
867,442 |
Savings |
|
|
693,686 |
|
|
677,000 |
|
|
656,514 |
|
|
621,168 |
|
|
598,564 |
Time deposits |
|
|
467,024 |
|
|
441,139 |
|
|
456,431 |
|
|
460,443 |
|
|
414,542 |
Total core
deposits |
|
2,857,280 |
|
|
2,626,961 |
|
|
2,606,413 |
|
|
2,456,615 |
|
|
2,300,618 |
|
|
|
|
|
|
|
Brokered time deposits |
|
14,671 |
|
|
23,521 |
|
|
39,125 |
|
|
55,454 |
|
|
64,120 |
Other non-core time deposits |
|
83,989 |
|
|
78,723 |
|
|
79,472 |
|
|
83,582 |
|
|
87,153 |
Total deposits |
$ |
2,955,940 |
|
$ |
2,729,205 |
|
$ |
2,725,010 |
|
$ |
2,595,651 |
|
$ |
2,451,891 |
SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF) |
|
|
|
|
Asset Quality Information (unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Quarter Ended |
Dollars in thousands |
9/30/2021 |
6/30/2021 |
3/31/2021 |
12/31/2020 |
9/30/2020 |
|
|
|
|
|
|
|
|
Gross loan charge-offs |
$ |
528 |
|
|
$ |
343 |
|
|
$ |
354 |
|
|
$ |
434 |
|
|
$ |
1,259 |
|
|
Gross loan
recoveries |
|
(158 |
) |
|
|
(141 |
) |
|
|
(165 |
) |
|
|
(195 |
) |
|
|
(245 |
) |
|
Net loan charge-offs/(recoveries) |
$ |
370 |
|
|
$ |
202 |
|
|
$ |
189 |
|
|
$ |
239 |
|
|
$ |
1,014 |
|
|
|
|
|
|
|
|
|
Net loan
charge-offs to average loans (annualized) |
|
0.06 |
% |
|
|
0.03 |
% |
|
|
0.03 |
% |
|
|
0.04 |
% |
|
|
0.18 |
% |
|
Allowance
for loan credit losses |
$ |
32,406 |
|
|
$ |
33,885 |
|
|
$ |
34,042 |
|
|
$ |
32,246 |
|
|
$ |
29,354 |
|
|
Allowance
for loan credit losses as a percentage |
|
|
|
|
|
|
of period end loans |
|
1.27 |
% |
|
|
1.39 |
% |
|
|
1.39 |
% |
|
|
1.34 |
% |
|
|
1.30 |
% |
|
Allowance
for credit losses on |
|
|
|
|
|
|
unfunded loan commitments |
$ |
5,860 |
|
|
$ |
4,660 |
|
|
$ |
3,705 |
|
|
$ |
4,190 |
|
|
$ |
3,525 |
|
|
Nonperforming assets: |
|
|
|
|
|
|
Nonperforming loans |
|
|
|
|
|
|
Commercial |
$ |
459 |
|
|
$ |
968 |
|
|
$ |
848 |
|
|
$ |
525 |
|
|
$ |
553 |
|
|
Commercial real
estate |
|
4,643 |
|
|
|
14,430 |
|
|
|
17,137 |
|
|
|
14,237 |
|
|
|
4,313 |
|
|
Residential construction
and development |
|
448 |
|
|
|
621 |
|
|
|
626 |
|
|
|
235 |
|
|
|
2 |
|
|
Residential real
estate |
|
5,514 |
|
|
|
6,800 |
|
|
|
6,667 |
|
|
|
5,264 |
|
|
|
5,104 |
|
|
Consumer |
|
48 |
|
|
|
38 |
|
|
|
54 |
|
|
|
74 |
|
|
|
31 |
|
|
Other |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
Total
nonperforming loans |
|
11,112 |
|
|
|
22,857 |
|
|
|
25,332 |
|
|
|
20,335 |
|
|
|
10,003 |
|
|
Foreclosed properties |
|
|
|
|
|
|
Commercial real
estate |
|
2,192 |
|
|
|
2,281 |
|
|
|
2,281 |
|
|
|
2,581 |
|
|
|
2,500 |
|
|
Commercial construction
and development |
|
2,925 |
|
|
|
3,146 |
|
|
|
3,884 |
|
|
|
4,154 |
|
|
|
4,154 |
|
|
Residential construction
and development |
|
6,712 |
|
|
|
6,859 |
|
|
|
7,129 |
|
|
|
7,791 |
|
|
|
10,330 |
|
|
Residential real
estate |
|
621 |
|
|
|
884 |
|
|
|
624 |
|
|
|
1,062 |
|
|
|
847 |
|
|
Total
foreclosed properties |
|
12,450 |
|
|
|
13,170 |
|
|
|
13,918 |
|
|
|
15,588 |
|
|
|
17,831 |
|
|
Other repossessed assets |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
Total
nonperforming assets |
$ |
23,562 |
|
|
$ |
36,027 |
|
|
$ |
39,250 |
|
|
$ |
35,923 |
|
|
$ |
27,834 |
|
|
|
|
|
|
|
|
|
Nonperforming loans to period end loans |
|
0.44 |
% |
|
|
0.94 |
% |
|
|
1.03 |
% |
|
|
0.84 |
% |
|
|
0.44 |
% |
|
Nonperforming assets to period end assets |
|
0.67 |
% |
|
|
1.10 |
% |
|
|
1.21 |
% |
|
|
1.16 |
% |
|
|
0.94 |
% |
|
|
|
|
|
|
|
|
Troubled
debt restructurings |
|
|
|
|
|
|
Performing |
$ |
20,535 |
|
|
$ |
20,799 |
|
|
$ |
20,462 |
|
|
$ |
21,375 |
|
|
$ |
22,232 |
|
|
Nonperforming |
|
1,141 |
|
|
|
1,235 |
|
|
|
3,828 |
|
|
|
3,127 |
|
|
|
2,988 |
|
|
Total
troubled debt restructurings |
$ |
21,676 |
|
|
$ |
22,034 |
|
|
$ |
24,290 |
|
|
$ |
24,502 |
|
|
$ |
25,220 |
|
Loans Past Due 30-89 Days (unaudited) |
|
|
|
|
|
|
|
|
Dollars in thousands |
9/30/2021 |
6/30/2021 |
3/31/2021 |
12/31/2020 |
9/30/2020 |
|
|
|
|
|
|
|
|
Commercial |
$ |
304 |
|
$ |
414 |
|
$ |
335 |
|
$ |
1 |
|
$ |
147 |
|
Commercial
real estate |
|
281 |
|
|
733 |
|
|
508 |
|
|
274 |
|
|
1,740 |
|
Construction
and development |
|
1,215 |
|
|
1,911 |
|
|
330 |
|
|
47 |
|
|
422 |
|
Residential
real estate |
|
2,643 |
|
|
3,594 |
|
|
2,146 |
|
|
4,405 |
|
|
4,464 |
|
Consumer |
|
193 |
|
|
404 |
|
|
96 |
|
|
233 |
|
|
160 |
|
Other |
|
1 |
|
|
- |
|
|
3 |
|
|
5 |
|
|
2 |
|
Total |
$ |
4,637 |
|
$ |
7,056 |
|
$ |
3,418 |
|
$ |
4,965 |
|
$ |
6,935 |
|
|
|
|
|
|
|
SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF) |
|
|
|
|
|
|
|
|
|
Average
Balance Sheet, Interest Earnings & Expenses and Average
Rates |
|
|
|
|
|
|
Q3 2021 vs Q2 2021 vs Q3 2020 (unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q3 2021 |
|
Q2 2021 |
|
Q3 2020 |
|
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 |
$ |
2,495,880 |
|
|
$ |
28,340 |
|
4.50 |
% |
|
$ |
2,455,757 |
|
|
$ |
27,593 |
|
4.51 |
% |
|
$ |
2,251,722 |
|
|
$ |
26,656 |
|
|
4.71 |
% |
Tax-exempt (2) |
|
7,871 |
|
|
|
96 |
|
4.84 |
% |
|
|
11,370 |
|
|
|
132 |
|
4.66 |
% |
|
|
16,245 |
|
|
|
191 |
|
|
4.68 |
% |
Securities |
|
|
|
|
|
|
|
|
|
|
|
Taxable |
|
315,082 |
|
|
|
1,432 |
|
1.80 |
% |
|
|
285,092 |
|
|
|
1,351 |
|
1.90 |
% |
|
|
261,231 |
|
|
|
1,445 |
|
|
2.20 |
% |
Tax-exempt (2) |
|
166,285 |
|
|
|
1,159 |
|
2.77 |
% |
|
|
147,703 |
|
|
|
1,078 |
|
2.93 |
% |
|
|
150,350 |
|
|
|
1,186 |
|
|
3.17 |
% |
Interest bearing deposits other banks |
|
|
|
|
|
|
|
|
|
|
and Federal funds
sold |
|
248,315 |
|
|
|
118 |
|
0.19 |
% |
|
|
154,677 |
|
|
|
56 |
|
0.15 |
% |
|
|
60,639 |
|
|
|
57 |
|
|
0.37 |
% |
Total
interest earning assets |
|
3,233,433 |
|
|
|
31,145 |
|
3.82 |
% |
|
|
3,054,599 |
|
|
|
30,210 |
|
3.97 |
% |
|
|
2,740,187 |
|
|
|
29,535 |
|
|
4.29 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
earning assets |
|
|
|
|
|
|
|
|
|
|
|
Cash & due from banks |
|
20,077 |
|
|
|
|
|
19,095 |
|
|
|
|
|
16,603 |
|
|
|
Premises & equipment |
|
55,908 |
|
|
|
|
|
53,210 |
|
|
|
|
|
52,329 |
|
|
|
Other assets |
|
175,975 |
|
|
|
|
|
170,470 |
|
|
|
|
|
154,578 |
|
|
|
Allowance for credit losses |
|
(33,911 |
) |
|
|
|
|
(34,674 |
) |
|
|
|
|
(28,144 |
) |
|
|
Total assets |
$ |
3,451,482 |
|
|
|
|
$ |
3,262,700 |
|
|
|
|
$ |
2,935,553 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
Interest
bearing liabilities |
|
|
|
|
|
|
|
|
|
|
|
Interest bearing |
|
|
|
|
|
|
|
|
|
|
|
demand deposits |
$ |
1,092,392 |
|
|
$ |
325 |
|
0.12 |
% |
|
$ |
995,673 |
|
|
$ |
371 |
|
0.15 |
% |
|
$ |
850,281 |
|
|
$ |
380 |
|
|
0.18 |
% |
Savings deposits |
|
691,411 |
|
|
|
602 |
|
0.35 |
% |
|
|
665,735 |
|
|
|
634 |
|
0.38 |
% |
|
|
588,085 |
|
|
|
925 |
|
|
0.63 |
% |
Time deposits |
|
571,445 |
|
|
|
905 |
|
0.63 |
% |
|
|
562,605 |
|
|
|
1,131 |
|
0.81 |
% |
|
|
585,092 |
|
|
|
2,247 |
|
|
1.53 |
% |
Short-term borrowings |
|
140,146 |
|
|
|
470 |
|
1.33 |
% |
|
|
140,146 |
|
|
|
464 |
|
1.33 |
% |
|
|
165,555 |
|
|
|
734 |
|
|
1.76 |
% |
Long-term borrowings and |
|
|
|
|
|
|
|
|
|
|
|
subordinated debentures |
|
49,724 |
|
|
|
543 |
|
4.33 |
% |
|
|
49,694 |
|
|
|
544 |
|
4.39 |
% |
|
|
23,230 |
|
|
|
194 |
|
|
3.32 |
% |
Total
interest bearing liabilities |
|
2,545,118 |
|
|
|
2,845 |
|
0.44 |
% |
|
|
2,413,853 |
|
|
|
3,144 |
|
0.52 |
% |
|
|
2,212,243 |
|
|
|
4,480 |
|
|
0.81 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
bearing liabilities |
|
|
|
|
|
|
|
|
|
|
|
Demand deposits |
|
547,627 |
|
|
|
|
|
503,116 |
|
|
|
|
|
421,741 |
|
|
|
Other liabilities |
|
38,789 |
|
|
|
|
|
36,842 |
|
|
|
|
|
33,978 |
|
|
|
Total liabilities |
|
3,131,534 |
|
|
|
|
|
2,953,811 |
|
|
|
|
|
2,667,962 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders' equity - preferred |
|
14,920 |
|
|
|
|
|
11,254 |
|
|
|
|
|
- |
|
|
|
Shareholders' equity - common |
|
305,028 |
|
|
|
|
|
297,635 |
|
|
|
|
|
267,591 |
|
|
|
Total liabilities and |
|
|
|
|
|
|
|
|
|
|
|
shareholders' equity |
$ |
3,451,482 |
|
|
|
|
$ |
3,262,700 |
|
|
|
|
$ |
2,935,553 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET
INTEREST EARNINGS |
|
|
$ |
28,300 |
|
|
|
|
$ |
27,066 |
|
|
|
|
$ |
25,055 |
|
|
|
|
|
|
|
|
|
|
|
|
|
NET
INTEREST MARGIN |
|
|
|
3.47 |
% |
|
|
|
|
3.55 |
% |
|
|
|
|
|
3.64 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
(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 $263,000,
$255,000, and $289,000 for Q3 2021, |
Q2 2021 and Q3 2020,
respectively. |
|
|
|
|
|
|
|
|
|
SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF) |
|
|
|
|
|
Average
Balance Sheet, Interest Earnings & Expenses and Average
Rates |
|
|
|
|
YTD
2021 vs YTD 2020 (unaudited) |
|
|
|
|
|
|
|
|
|
|
YTD 2021 |
|
YTD 2020 |
|
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 |
$ |
2,436,295 |
|
|
$ |
83,352 |
|
4.57 |
% |
|
$ |
2,102,331 |
|
|
$ |
77,211 |
|
4.91 |
% |
Tax-exempt (2) |
|
10,622 |
|
|
|
377 |
|
4.75 |
% |
|
|
16,121 |
|
|
|
576 |
|
4.77 |
% |
Securities |
|
|
|
|
|
|
|
Taxable |
|
288,999 |
|
|
|
4,079 |
|
1.89 |
% |
|
|
256,322 |
|
|
|
4,657 |
|
2.43 |
% |
Tax-exempt (2) |
|
153,035 |
|
|
|
3,328 |
|
2.91 |
% |
|
|
113,793 |
|
|
|
2,897 |
|
3.40 |
% |
Interest bearing deposits other banks |
|
|
|
|
|
|
and Federal funds
sold |
|
190,154 |
|
|
|
241 |
|
0.17 |
% |
|
|
46,074 |
|
|
|
215 |
|
0.62 |
% |
Total
interest earning assets |
|
3,079,105 |
|
|
|
91,377 |
|
3.97 |
% |
|
|
2,534,641 |
|
|
|
85,556 |
|
4.51 |
% |
|
|
|
|
|
|
|
|
Noninterest
earning assets |
|
|
|
|
|
|
|
Cash & due from banks |
|
19,093 |
|
|
|
|
|
15,901 |
|
|
|
Premises & equipment |
|
54,154 |
|
|
|
|
|
49,655 |
|
|
|
Other assets |
|
170,868 |
|
|
|
|
|
138,651 |
|
|
|
Allowance for loan losses |
|
(33,765 |
) |
|
|
|
|
(25,618 |
) |
|
|
Total assets |
$ |
3,289,455 |
|
|
|
|
$ |
2,713,230 |
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
Interest
bearing liabilities |
|
|
|
|
|
|
|
Interest bearing |
|
|
|
|
|
|
|
demand deposits |
$ |
1,016,569 |
|
|
$ |
1,090 |
|
0.14 |
% |
|
$ |
753,384 |
|
|
$ |
1,830 |
|
0.32 |
% |
Savings deposits |
|
666,642 |
|
|
|
1,881 |
|
0.38 |
% |
|
|
516,841 |
|
|
|
3,462 |
|
0.89 |
% |
Time deposits |
|
572,547 |
|
|
|
3,493 |
|
0.82 |
% |
|
|
608,551 |
|
|
|
7,796 |
|
1.71 |
% |
Short-term borrowings |
|
140,146 |
|
|
|
1,403 |
|
1.34 |
% |
|
|
127,109 |
|
|
|
1,863 |
|
1.96 |
% |
Long-term borrowings and |
|
|
|
|
|
|
|
subordinated debentures |
|
49,694 |
|
|
|
1,632 |
|
4.39 |
% |
|
|
21,284 |
|
|
|
600 |
|
3.77 |
% |
|
|
2,445,598 |
|
|
|
9,499 |
|
0.52 |
% |
|
|
2,027,169 |
|
|
|
15,551 |
|
1.02 |
% |
Noninterest
bearing liabilities |
|
|
|
|
|
|
|
Demand deposits |
|
501,309 |
|
|
|
|
|
393,128 |
|
|
|
Other liabilities |
|
37,856 |
|
|
|
|
|
30,741 |
|
|
|
Total liabilities |
|
2,984,763 |
|
|
|
|
|
2,451,038 |
|
|
|
|
|
|
|
|
|
|
|
Shareholders' equity - preferred |
|
8,780 |
|
|
|
|
|
- |
|
|
|
Shareholders' equity - common |
|
295,912 |
|
|
|
|
|
262,192 |
|
|
|
Total liabilities and |
|
|
|
|
|
|
|
shareholders' equity |
$ |
3,289,455 |
|
|
|
|
$ |
2,713,230 |
|
|
|
|
|
|
|
|
|
|
|
NET
INTEREST EARNINGS |
|
|
$ |
81,878 |
|
|
|
|
$ |
70,005 |
|
|
|
|
|
|
|
|
|
NET
INTEREST MARGIN |
|
|
|
3.56 |
% |
|
|
|
|
3.69 |
% |
|
|
|
|
|
|
|
|
(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 $779,000
and $730,000 for the |
YTD 2021 and YTD 2020
periods, respectively. |
|
|
|
|
|
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