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Summit Financial Group Reports First Quarter 2024 Earnings of $1.14 Per Share

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Summit Financial Group, Inc. reported strong first-quarter earnings of $1.14 per share, showcasing growth in loans and net income of $16.8 million. The pending merger with Burke & Herbert is expected to enhance shareholder value. Key highlights include a 4.3% increase in TBVPCS, 0.48% growth in total loans, and a 0.91% increase in core deposits. Net interest income rose by 16.8%, while noninterest income decreased. Total assets reached $4.6 billion with a 0.2% increase, and total loans saw a 0.4% growth. Summit's efficiency ratio was 48.29%, up from the prior year. The company recorded net loan recoveries and no provision for credit losses in Q1 2024.
Summit Financial Group, Inc. ha riportato risultati forti per il primo trimestre, con un guadagno di 1,14 dollari per azione, dimostrando una crescita nei prestiti e un reddito netto di 16,8 milioni di dollari. La fusione in attesa con Burke & Herbert dovrebbe incrementare il valore per gli azionisti. I punti salienti includono un incremento del 4,3% in TBVPCS, una crescita dello 0,48% nei prestiti totali e un aumento dello 0,91% nei depositi principali. Il reddito netto da interessi è aumentato del 16,8%, mentre il reddito non derivante dagli interessi è diminuito. Gli attivi totali hanno raggiunto i 4,6 miliardi di dollari con un incremento dello 0,2%, e i prestiti totali hanno visto una crescita dello 0,4%. Il rapporto di efficienza di Summit era del 48,29%, in aumento rispetto all'anno precedente. La compagnia ha registrato recuperi netti sui prestiti e nessuna provvista per perdite su crediti nel primo trimestre del 2024.
Summit Financial Group, Inc. reportó sólidos resultados del primer trimestre con ganancias de $1.14 por acción, mostrando crecimiento en préstamos y un ingreso neto de $16.8 millones. Se espera que la fusión pendiente con Burke & Herbert aumente el valor para los accionistas. Destacan un aumento del 4.3% en TBVPCS, un crecimiento del 0.48% en préstamos totales y un aumento del 0.91% en depósitos nucleares. El ingreso neto por intereses subió un 16.8%, mientras que el ingreso no derivado de intereses decreció. Los activos totales alcanzaron los $4.6 mil millones con un aumento del 0.2%, y los préstamos totales vieron un crecimiento del 0.4%. La ratio de eficiencia de Summit fue del 48.29%, aumentando respecto al año anterior. La compañía registró recuperaciones netas de préstamos y no hubo provisiones para pérdidas crediticias en el Q1 2024.
Summit Financial Group, Inc.는 1분기 강력한 실적을 보고하였으며 주당 $1.14의 수익을 보여주었습니다. 이는 대출과 순수입의 성장을 보여주는 것으로 16.8백만 달러의 순수입을 기록하였습니다. Burke & Herbert와의 예정된 합병은 주주 가치를 증대시킬 것으로 예상됩니다. 주요 하이라이트로는 TBVPCS에서 4.3%의 증가, 전체 대출에서 0.48%의 성장, 그리고 핵심 예금에서 0.91%의 증가가 포함됩니다. 순이자 수익은 16.8% 증가했지만 비이자 수익은 감소했습니다. 총 자산은 $4.6 billion으로 0.2% 증가했고, 총 대출은 0.4% 성장했습니다. Summit의 효율성 비율은 전년 대비 상승한 48.29%였습니다. 회사는 2024년 1분기에 순대출 회수를 기록하고 신용 손실에 대한 충당금은 없었습니다.
Summit Financial Group, Inc. a rapporté de solides résultats pour le premier trimestre avec un bénéfice de 1,14 dollars par action, illustrant une croissance des prêts et un revenu net de 16,8 millions de dollars. La fusion en attente avec Burke & Herbert devrait accroître la valeur pour les actionnaires. Les points forts incluent une augmentation de 4,3 % du TBVPCS, une croissance de 0,48 % des prêts totaux et une augmentation de 0,91 % des dépôts de base. Le revenu net d'intérêts a augmenté de 16,8 %, tandis que le revenu non-intérêt a diminué. L'actif total atteint 4,6 milliards de dollars avec une hausse de 0,2 %, et les prêts totaux ont connu une croissance de 0,4 %. Le ratio d'efficience de Summit était de 48,29 %, en hausse par rapport à l'année précédente. L'entreprise a enregistré des récupérations nettes de prêts et aucune provision pour pertes sur crédits au T1 2024.
Summit Financial Group, Inc. berichtete über starke Ergebnisse im ersten Quartal mit einem Gewinn von 1,14 Dollar pro Aktie, was ein Wachstum bei Krediten und einem Nettogewinn von 16,8 Millionen Dollar zeigt. Die bevorstehende Fusion mit Burke & Herbert wird voraussichtlich den Aktionärswert steigern. Zu den Hauptmerkmalen gehören ein Anstieg von 4,3% bei TBVPCS, ein Wachstum von 0,48% bei Gesamtkrediten und ein Anstieg von 0,91% bei den Kerndepositen. Das Nettozinseinkommen stieg um 16,8%, während das nichtzinsertrag zurückging. Die Gesamtaktiva erreichten 4,6 Milliarden Dollar mit einem Anstieg von 0,2%, und die Gesamtkredite verzeichneten ein Wachstum von 0,4%. Das Effizienzverhältnis von Summit war 48,29%, ein Anstieg gegenüber dem Vorjahr. Das Unternehmen verzeichnete Netto-Kreditwiedergewinnungen und keine Vorsorge für Kreditverluste im Q1 2024.
Positive
  • Strong first-quarter earnings of $1.14 per share and net income of $16.8 million.
  • Pending merger with Burke & Herbert expected to enhance shareholder value.
  • TBVPCS increased by 4.3% to $24.91 in Q1 2024.
  • Net interest income rose by 16.8%, while noninterest income decreased.
  • Total assets reached $4.6 billion with a 0.2% increase.
  • Total loans saw a 0.4% growth in the first quarter of 2024.
  • Efficiency ratio stood at 48.29% in Q1 2024.
  • Recorded net loan recoveries and no provision for credit losses in Q1 2024.
Negative
  • None.

Summit Financial Group's earnings report indicates stable growth, highlighting a net income rise to $16.8 million from $13.9 million year-over-year. This growth is paired with a modest loan increase and strong net interest margin (NIM) retention, as well as an advantageous efficiency ratio.

From a financial perspective, the earnings per share (EPS) increase is a positive signal to investors, reflecting the company's profitability and operational efficiency. Moreover, the lack of provision for credit losses suggests confidence in asset quality, though it would be prudent for investors to consider the context of macroeconomic conditions that could influence loan performance in the future.

The upcoming merger with Burke & Herbert is a strategic move that could potentially enhance market reach and operational synergies. However, investors should be attentive to integration risks and the execution of combined operations, as these factors will be critical in realizing the forecasted benefits.

Summit's strategic focus on community banking and the impending merger is indicative of a trend within the financial sector towards consolidation to leverage operational efficiencies and client base expansion. The merger's completion might contribute positively to the bank's competitive positioning and could be a catalyst for future growth.

The 4.3 percent increase in Tangible Book Value Per Common Share is a reflection of the company's ability to generate value for shareholders. However, the slight decrease in Net Interest Margin, even if minimal, could warrant attention as it could impact future earnings, especially in fluctuating rate environments.

MOOREFIELD, W.Va., April 25, 2024 (GLOBE NEWSWIRE) -- Summit Financial Group, Inc. (“Company” or “Summit”) (NASDAQ: SMMF) today reported financial results for the first quarter of 2024, revealing a strong earnings performance marked by growth in loans. The Company’s continued success underscores its position as an exceptional community bank, reflecting a sound strategy and solid operational execution.

The Company, which serves commercial and individual clients across West Virginia, the Washington D.C. metropolitan area, Virginia, Kentucky, the Eastern Shore of Maryland and Delaware through Summit Community Bank, Inc., reported net income applicable to common shares of $16.8 million, or $1.14 per diluted share, for the first quarter of 2024, as compared to $16.4 million, or $1.11 per diluted share, for the fourth quarter of 2023 and $13.9 million, or $1.08 per diluted share, for the first quarter of 2023.

“We had a strong start to the year highlighted by solid earnings, a stable top quartile peer net interest margin, an enviable efficiency ratio and best-in-class return on tangible common equity” noted H. Charles Maddy, III, President and Chief Executive Officer. “Now as we look forward to the consummation of our strategic partnership with Burke & Herbert, which brings together two organizations dedicated to a community banking model that places an emphasis on service and dedication to the people who live and work among us, I could not be more excited by the combined organization’s prospects for robust growth and for enhancing shareholder value.”

Key Highlights for the First Quarter of 2024

  • Our pending merger of equals with Burke & Herbert Financial Services Corp. (“Burke & Herbert”) has received all required regulatory approvals or waivers and is expected to close May 3, 2024.
  • Tangible Book Value Per Common Share (“TBVPCS”) increased by $1.02 to $24.91 during the first quarter of 2024, representing a 4.3 percent increase. This increase was primarily due to net retained earnings.
  • Our net interest margin (“NIM”) decreased 1 basis point to 3.75 percent from the linked quarter.
  • The first quarter saw a modest increase in total loans, excluding mortgage warehouse lines of credit and acquired loans, registering an increase of 0.48 percent (1.93 percent annualized). This performance was further underscored by year-over-year growth of 6.7 percent.
  • Summit's core deposits likewise experienced a modest increase in the first quarter of 2024, up 0.91 percent (3.63 percent annualized) from the linked quarter.
  • The Company recorded no provision for credit losses in the first quarter of 2024 compared to $1.50 million in the linked quarter.
  • Summit’s efficiency ratio was 48.29 percent compared to 47.33 percent in the linked quarter, indicating optimized use of resources.

Results from Operations

Net interest income totaled $39.9 million in the first quarter of 2024, an increase of 16.8 percent from the prior-year first quarter, and a decrease of 2.1 percent from the linked quarter. NIM for the first quarter 2024 was 3.75 percent compared to 3.76 percent for the linked quarter and 3.83 percent for the prior-year quarter.

Summit recorded no provision for credit losses in the first quarter of 2024 compared to $1.50 million in both the linked quarter and the year ago quarter.

Noninterest income, consisting primarily of service fee income from community banking activities and trust and wealth management fees, for first quarter 2024 was $5.08 million compared to $5.80 million for the linked quarter and $4.39 million for the comparable period of 2023. The Company recorded realized securities losses on available for sale debt securities of $94,000 in the first quarter of 2024 and gains of $15,000 in the linked quarter. In addition, the Company recognized net gains on equity investments of $40,000 in the first quarter 2024 compared to $365,000 in the linked quarter.

Total noninterest expense decreased to $23.0 million in the first quarter of 2024, down 4.0 percent from $23.9 million in the linked quarter and up 18.3 percent from $19.4 million for the prior-year first quarter.

Salary and benefit expenses of $12.1 million in the first quarter of 2024 increased from $11.4 million for the linked quarter and $10.8 million from the prior-year first quarter. The year over year increase was primarily due to the PSB acquisition and higher group health insurance premiums.

Acquisition-related expenses were $53,000 for Q1 2024 compared to $839,000 for the linked quarter and $331,000 for Q1 2023.

Other expenses were very controlled at $3.44 million for Q1 2024 compared to $4.35 million for the linked quarter and $2.97 million in the year-ago period.

Summit’s efficiency ratio was 48.29 percent in the first quarter of 2024, up from 48.00 percent for the first quarter of 2023 and marginally higher compared to 47.33 percent in the linked quarter. Non-interest expense to average assets was 1.99 percent in first quarter of 2024 compared to 2.05 percent in the linked quarter and 1.97 percent in the year-ago quarter.

Balance Sheet

As of March 31, 2024, total assets were $4.6 billion, an increase of $8.56 million, or 0.2 percent since December 31, 2023.

Total loans net of unearned fees increased 0.4 percent (1.7 percent annualized) to $3.70 billion as of March 31, 2024, from $3.68 billion at December 31, 2023. Total loans, excluding those related to mortgage warehouse lending and acquired loans, reached $3.2 billion as of March 31, 2024. This represents an increase of 0.48 percent (or 1.93 percent when annualized) during the quarter just ended.

Deposits totaled $3.7 billion on March 31, 2024, a 0.9 percent (or 3.6 percent annualized) increase during the first quarter. Core deposits increased 0.9 percent (3.6 percent annualized) during the first quarter 2024 to $3.7 billion. Adjusted uninsured deposits (excluding uninsured public deposits otherwise secured or collateralized as required by law) were 34.4 percent of total deposits at March 31, 2024 compared to 34.8 percent at year-end 2023 and 29.3 percent at the year-ago period end.

Total shareholders’ equity was $454.3 million as of March 31, 2024, compared to $440.2 million at December 31, 2023. Summit paid a quarterly common dividend of $0.22 per share in the first quarter of 2024.

During the first quarter 2024, TBVPCS increased $1.02 to $24.91. In addition to the positive impact of retained earnings, TBVPCS was positively impacted by unrealized net gains on interest rate caps and swaps held as hedges against higher interest rates totaling $0.20 per common share (net of deferred income taxes) recorded in accumulated other comprehensive loss. However, these gains were nearly offset by unrealized net losses on AFS debt securities of $0.18 per common share (net of deferred income taxes), also recorded in accumulated other comprehensive loss, in the same period.

Summit had 14,686,738 outstanding common shares at March 31, 2024, compared to 14,683,457 at year-end 2023.

Asset Quality

The Company recorded net loan recoveries of $93,000 during first quarter 2024 compared to net loan recoveries of $188,000 in the fourth quarter of 2023 and $63,000 in the year-ago period.

Summit recorded no provision for credit losses in the first quarter of 2024. The provision for credit losses was $1.50 million for both the linked quarter and the first quarter of 2023.

Summit’s allowance for loan credit losses was $49.2 million on March 31, 2024, $48.1 million at the end of the linked quarter, and $40.8 million on March 31, 2023.

The allowance for loan credit losses stood at 1.33 percent of total loans at March 31, 2024 compared to 1.31 percent at December 31, 2023. The allowance was 227.6 percent of nonperforming loans at March 31, 2024, compared to 388.2 percent at year-end 2023.

Summit’s allowance for credit losses on unfunded loan commitments was $6.69 million as of March 31, 2024, compared to $7.74 million at the end of the linked quarter. The allowance for credit losses on unfunded loan commitments decreased $1.05 million during the most recent quarter, principally as a result of a change in the mix of unfunded commitments. Construction loan commitments, which on average have a higher historical loss ratio than do other loans, decreased, while commercial unfunded lines of credit, which carry a lower loss factor and lower utilization rates, increased.

As of March 31, 2024, nonperforming assets (“NPAs”), consisting of nonperforming loans, foreclosed properties, and repossessed assets, totaled $25.1 million, or 0.54 percent of assets, compared to NPAs of $16.2 million, or 0.35 percent of assets at year-end 2023.

About the Company

Summit Financial Group, Inc. is the $4.6 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, Kentucky, Eastern Shore of Maryland and Delaware. 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 MySummitBank.com and 54 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.

Non-GAAP Financial Measures

In addition to the results of operations presented in accordance with Generally Accepted Accounting Principles (GAAP), Summit’s management uses, and this press release contains or references, certain non-GAAP financial measures, such as tangible common equity/tangible assets; efficiency ratio; return on average tangible equity and return on average tangible common equity. Summit believes these financial measures provide information useful to investors in understanding our operational performance and business and performance trends which facilitate comparisons with the performance of others in the financial services industry. Although Summit believes that these non-GAAP financial measures enhance investors' understanding of Summit’s business and performance, these non-GAAP financial measures should not be considered an alternative to GAAP.

Forward-Looking Statements

This press release contains comments or information that constitute forward-looking statements (within the meaning of the Private Securities Litigation Act of 1995) that are based on current expectations that involve a number of risks and uncertainties. Words such as “expects”, “anticipates”, “believes”, “estimates” and other similar expressions or future or conditional verbs such as “will”, “should”, “would” and “could” are intended to identify such forward-looking statements.

Although we believe the expectations reflected in such forward-looking statements are reasonable, actual results may differ materially. Factors that might cause such a difference include: the effect of the COVID-19 pandemic, including the negative impacts and disruptions on the communities we serve, and the domestic and global economy, which may have an adverse effect on our business; current and future economic and market conditions, including the effects of declines in housing prices, high unemployment rates, U.S. fiscal debt, budget and tax matters, geopolitical matters, and any slowdown in global economic growth; fiscal and monetary policies of the Federal Reserve; future provisions for credit losses on loans and debt securities; changes in nonperforming assets; changes in interest rates and interest rate relationships; demand for products and services; the degree of competition by traditional and non-traditional competitors; the successful integration of operations of our acquisitions; changes in banking laws and regulations; changes in tax laws; the impact of technological advances; the outcomes of contingencies; trends in customer behavior as well as their ability to repay loans; and changes in the national and local economies. We undertake no obligation to revise these statements following the date of this press release.

 
SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF)  
Quarterly Performance Summary (unaudited)   
Q1 2024 vs Q1 2023   
    
  For the Quarter EndedPercent
Dollars in thousands3/31/20243/31/2023Change
Statements of Income   
 Interest income   
 Loans, including fees$59,249 $45,485 30.3%
 Securities 6,141  4,819 27.4%
 Other 132  171 -22.8%
 Total interest income 65,522  50,475 29.8%
 Interest expense   
 Deposits 21,430  14,000 53.1%
 Borrowings 4,169  2,286 82.4%
 Total interest expense 25,599  16,286 57.2%
 Net interest income 39,923  34,189 16.8%
 Provision for credit losses -  1,500 -100.0%
 Net interest income after provision   
 for credit losses 39,923  32,689 22.1%
     
 Noninterest income   
 Trust and wealth management fees 847  811 4.4%
 Mortgage origination revenue 154  171 -9.9%
 Service charges on deposit accounts 1,723  1,392 23.8%
 Bank card revenue 1,833  1,568 16.9%
 Net gains on equity investments 40  45 -11.1%
 Net realized losses on debt securities (94) (59)59.3%
 Bank owned life insurance and annuity income 463  336 37.8%
 Other income 112  122 -8.2%
 Total noninterest income 5,078  4,386 15.8%
 Noninterest expense   
 Salaries and employee benefits 12,058  10,807 11.6%
 Net occupancy expense 1,695  1,333 27.2%
 Equipment expense 2,508  2,030 23.5%
 Professional fees 385  376 2.4%
 Advertising and public relations 272  170 60.0%
 Amortization of intangibles 987  343 187.8%
 FDIC premiums 717  330 117.3%
 Bank card expense 832  696 19.5%
 Foreclosed properties expense, net of (gains)/losses 12  15 -20.0%
 Acquisition-related expense 53  331 -84.0%
 Other expenses 3,439  2,968 15.9%
 Total noninterest expense 22,958  19,399 18.3%
 Income before income taxes 22,043  17,676 24.7%
 Income taxes 4,996  3,575 39.7%
 Net income 17,047  14,101 20.9%
 Preferred stock dividends 225  225 n/a
     
 Net income applicable to common shares$16,822 $13,876 21.2%
 


SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF)  
Quarterly Performance Summary (unaudited)   
Q1 2024 vs Q1 2023  
     
  For the Quarter EndedPercent
  3/31/20243/31/2023Change
Per Share Data   
 Earnings per common share   
 Basic$1.15 $1.09 5.5%
 Diluted$1.14 $1.08 5.6%
     
 Cash dividends per common share$0.22 $0.20 10.0%
 Common stock dividend payout ratio 19.0% 18.1%5.0%
     
 Average common shares outstanding   
 Basic 14,683,596  12,783,851 14.9%
 Diluted 14,750,052  12,830,102 15.0%
     
 Common shares outstanding at period end 14,686,738  12,786,404 14.9%
     
Performance Ratios   
 Return on average equity 15.37% 15.55%-1.2%
 Return on average tangible equity (C) 19.27% 19.10%0.9%
 Return on average tangible common equity (D) 20.08% 20.10%-0.1%
 Return on average assets 1.47% 1.43%2.8%
 Net interest margin (A) 3.75% 3.83%-2.1%
 Efficiency ratio (B) 48.29% 48.00%0.6%
     
NOTES

(A) – Presented on a tax-equivalent basis assuming a federal tax rate of 21%.

(B) – Non-GAAP financial measure 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) – Non-GAAP financial measure that equals: (Net income + Amortization of intangibles [after-tax]) / (Average shareholders’ equity – Average intangible assets).

(D) – Non-GAAP financial measure that equals: (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 thousands3/31/202412/31/20239/30/20236/30/20233/31/2023
Statements of Income     
 Interest income     
 Loans, including fees$59,249 $59,856 $58,102 $54,413 $45,485 
 Securities 6,141  6,538  6,357  6,247  4,819 
 Other 132  122  235  203  171 
 Total interest income 65,522  66,516  64,694  60,863  50,475 
 Interest expense     
 Deposits 21,430  21,417  19,924  17,851  14,000 
 Borrowings 4,169  4,306  3,497  2,699  2,286 
 Total interest expense 25,599  25,723  23,421  20,550  16,286 
 Net interest income 39,923  40,793  41,273  40,313  34,189 
 Provision for credit losses -  1,500  1,250  8,000  1,500 
 Net interest income after provision     
 for credit losses 39,923  39,293  40,023  32,313  32,689 
 Noninterest income     
 Trust and wealth management fees 847  952  819  854  811 
 Mortgage origination revenue 154  65  172  169  171 
 Service charges on deposit accounts 1,723  1,866  1,775  1,943  1,392 
 Bank card revenue 1,833  1,837  1,907  1,987  1,568 
 Net gains on equity investments 40  365  180  150  45 
 Net realized gains/(losses) on debt securities (94) 15  (12) (211) (59)
 Bank owned life insurance and annuity income 463  499  311  431  336 
 Other income 112  202  113  100  122 
 Total noninterest income 5,078  5,801  5,265  5,423  4,386 
 Noninterest expense     
 Salaries and employee benefits 12,058  11,374  11,959  12,156  10,807 
 Net occupancy expense 1,695  1,554  1,436  1,528  1,333 
 Equipment expense 2,508  2,342  2,361  2,361  2,030 
 Professional fees 385  529  400  471  376 
 Advertising and public relations 272  432  247  264  170 
 Amortization of intangibles 987  995  998  999  343 
 FDIC premiums 717  670  716  742  330 
 Bank card expense 832  809  972  951  696 
 Foreclosed properties expense, net of (gains)/losses 12  16  10  48  15 
 Acquisition-related expenses 53  839  1,110  4,163  331 
 Other expenses 3,439  4,347  3,953  3,641  2,968 
 Total noninterest expense 22,958  23,907  24,162  27,324  19,399 
 Income before income taxes 22,043  21,187  21,126  10,412  17,676 
 Income tax expense 4,996  4,590  4,794  2,203  3,575 
 Net income 17,047  16,597  16,332  8,209  14,101 
 Preferred stock dividends 225  225  225  225  225 
       
 Net income applicable to common shares$16,822 $16,372 $16,107 $7,984 $13,876 
 


SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF)     
Five Quarter Performance Summary (unaudited)      
       
  For the Quarter Ended 
  3/31/202412/31/20239/30/20236/30/20233/31/2023 
Per Share Data      
 Earnings per common share      
 Basic$1.15 $1.12 $1.10 $0.54 $1.09  
 Diluted$1.14 $1.11 $1.09 $0.54 $1.08  
        
 Cash dividends per common share$0.22 $0.22 $0.22 $0.20 $0.20  
 Common stock dividend payout ratio 19.0% 19.5% 19.8% 36.7% 18.1% 
        
 Average common shares outstanding      
 Basic 14,683,596  14,676,383  14,672,176  14,668,923  12,783,851  
 Diluted 14,750,052  14,718,790  14,714,211  14,703,636  12,830,102  
        
 Common shares outstanding at period end 14,686,738  14,683,457  14,674,852  14,672,147  12,786,404  
        
Performance Ratios      
 Return on average equity 15.37% 15.74% 15.66% 7.99% 15.55% 
 Return on average tangible equity (C) 19.27% 20.01% 20.03% 10.86% 19.10% 
 Return on average tangible common equity (D) 20.08% 20.91% 20.95% 11.37% 20.10% 
 Return on average assets 1.47% 1.42% 1.42% 0.73% 1.43% 
 Net interest margin (A) 3.75% 3.76% 3.88% 3.89% 3.83% 
 Efficiency ratio (B) 48.29% 47.33% 47.15% 47.90% 48.00% 
 
NOTES

(A) – Presented on a tax-equivalent basis assuming a federal tax rate of 21%.

(B) – Non-GAAP financial measure 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) – Non-GAAP financial measure that equals: (Net income + Amortization of intangibles [after-tax]) / (Average shareholders’ equity – Average intangible assets).

(D) – Non-GAAP financial measure that equals: (Net income applicable to common shares + 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 amounts3/31/202412/31/20239/30/20236/30/20233/31/2023
Assets     
 Cash and due from banks$23,706 $21,834 $23,159 $23,341 $16,488 
 Interest bearing deposits other banks 31,950  30,398  36,398  39,902  54,328 
 Debt securities, available for sale 490,271  502,762  511,403  512,038  431,933 
 Debt securities, held to maturity 93,737  94,227  94,715  95,200  95,682 
 Equity investments 11,571  10,958  31,241  30,818  29,867 
 Other investments 21,842  21,130  19,579  16,014  12,696 
 Loans, net 3,647,810  3,633,522  3,551,686  3,506,880  3,059,099 
 Property held for sale 3,432  3,729  4,505  4,742  5,128 
 Premises and equipment, net 62,293  63,038  62,721  60,967  54,491 
 Goodwill and other intangible assets, net 73,443  74,430  75,425  76,423  61,807 
 Cash surrender value of life insurance policies and annuities 86,230  85,679  85,076  84,790  72,019 
 Derivative financial instruments 36,803  33,145  44,527  39,951  34,758 
 Other assets 59,796  59,470  63,773  61,204  49,111 
 Total assets$4,642,884 $4,634,322 $4,604,208 $4,552,270 $3,977,407 
Liabilities and Shareholders' Equity     
 Deposits$3,748,415 $3,715,148 $3,754,495 $3,735,034 $3,299,846 
 Short-term borrowings 262,359  302,957  258,054  232,150  140,150 
 Long-term borrowings and     
 subordinated debentures, net 124,123  124,008  123,892  123,776  123,660 
 Other liabilities 53,706  52,001  51,315  48,136  44,205 
 Total liabilities 4,188,603  4,194,114  4,187,756  4,139,096  3,607,861 
 Preferred stock and related surplus 14,920  14,920  14,920  14,920  14,920 
 Common stock and related surplus 130,235  129,990  130,508  130,227  90,939 
 Retained earnings 316,375  302,783  289,641  276,762  271,712 
 Accumulated other comprehensive loss (7,249) (7,485) (18,617) (8,735) (8,025)
 Total shareholders' equity 454,281  440,208  416,452  413,174  369,546 
 Total liabilities and shareholders' equity$4,642,884 $4,634,322 $4,604,208 $4,552,270 $3,977,407 
       
 Book value per common share$29.92 $28.96 $27.36 $27.14 $27.73 
 Tangible book value per common share (A)$24.91 $23.89 $22.22 $21.93 $22.90 
 Tangible common equity to tangible assets (B) 8.0% 7.7 7.2% 7.2% 7.5%
       
NOTES

(A)   – Tangible book value per share = (Common stock and related surplus plus Retained earnings plus Accumulated other comprehensive income/loss – Intangible assets) / Common shares outstanding.

(B)   – Tangible common equity to tangible assets = (Common stock and related surplus plus Retained earnings plus Accumulated other comprehensive income/loss – Intangible assets) / (Total assets – Intangible assets).
 


SUMMIT FINANCIAL GROUP INC. (NASDAQ: SMMF)    
Loan Composition (unaudited)      
        
Dollars in thousands3/31/202412/31/20239/30/20236/30/20233/31/2023 
        
Commercial $533,214 $503,842 $511,951 $511,457 $498,268 
Mortgage warehouse lines 108,858  108,848  114,734  118,785  86,240 
Commercial real estate      
Owner occupied 569,407  545,108  547,886  566,447  469,560 
Non-owner occupied 1,280,948  1,254,337  1,217,029  1,193,927  1,036,358 
Construction and development      
Land and development 105,425  145,258  114,354  117,371  102,351 
Construction  341,727  374,026  349,049  309,709  290,556 
Residential real estate      
Conventional  507,599  505,398  497,076  483,998  395,312 
Jumbo  123,132  116,614  113,837  117,219  111,475 
Home equity  80,027  81,126  81,967  86,050  70,167 
Consumer  43,107  43,756  44,288  44,429  36,531 
Other  3,598  3,299  6,748  3,169  3,117 
Total loans, net of unearned fees 3,697,042  3,681,612  3,598,919  3,552,561  3,099,935 
Less allowance for loan credit losses  49,232  48,090  47,233  45,681  40,836 
Loans, net$3,647,810 $3,633,522 $3,551,686 $3,506,880 $3,059,099 
        
Unfunded loan commitments$911,132 $950,001 $943,508 $957,278 $907,757 
        
 


SUMMIT FINANCIAL GROUP INC. (NASDAQ: SMMF)    
Deposit Composition (unaudited)     
        
Dollars in thousands 3/31/202412/31/20239/30/20236/30/20233/31/2023 
Core deposits       
Non-interest bearing checking$605,509 $593,576 $630,055 $679,139 $552,716 
Interest bearing checking 2,145,824  2,164,522  2,144,737  2,024,341  1,886,011 
Savings  438,451  450,526  477,348  512,129  462,631 
Time deposits  525,932  473,687  469,530  465,026  327,037 
Total core deposits 3,715,716  3,682,311  3,721,670  3,680,635  3,228,395 
        
Brokered time deposits 32,699  32,837  32,825  54,399  71,451 
Total deposits$3,748,415 $3,715,148 $3,754,495 $3,735,034 $3,299,846 
        
Estimated uninsured deposits (A)$1,288,845 $1,291,467 $1,283,610 $1,189,908 $933,703 
        
(A) - Excludes uninsured public funds otherwise secured or collateralized as required by law.
 


SUMMIT FINANCIAL GROUP INC. (NASDAQ: SMMF)    
Regulatory Capital Ratios (unaudited)      
  3/31/202412/31/20239/30/20236/30/20233/31/2023 
Summit Financial Group, Inc.      
 CET1 Risk-based Capital9.4%9.1%8.9%8.7%8.9% 
 Tier 1 Risk-based Capital10.2%9.9%9.7%9.5%9.8% 
 Total Risk-based Capital14.0%13.7%13.5%13.3%14.0% 
 Tier 1 Leverage9.0%8.7%8.5%8.4%8.7% 
        
Summit Community Bank, Inc.      
 CET1 Risk-based Capital12.0%11.7%11.6%11.3%11.9% 
 Tier 1 Risk-based Capital12.0%11.7%11.6%11.3%11.9% 
 Total Risk-based Capital13.3%12.9%12.7%12.5%13.1% 
 Tier 1 Leverage10.6%10.2%10.1%9.9%10.6% 
        
 


SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF)    
Asset Quality Information (unaudited)     
  For the Quarter Ended
Dollars in thousands3/31/202412/31/20239/30/20236/30/20233/31/2023
 Gross loan charge-offs$776 $444 $227 $4,009 $164 
 Gross loan recoveries (869) (632) (108) (118) (227)
 Net loan charge-offs (recoveries)$(93)$(188)$119 $3,891 $(63)
       
 Net loan charge-offs (recoveries) to average loans (annualized) -0.01% -0.02% 0.01% 0.44% -0.01%
       
 Allowance for loan credit losses$49,232 $48,090 $47,233 $45,681 $40,836 
 Allowance for loan credit losses as a percentage     
 of period end loans 1.33% 1.31% 1.31% 1.29% 1.32%
       
 Allowance for credit losses on     
 unfunded loan commitments ("ULC")$6,692 $7,742 $6,912 $7,332 $6,572 
 Allowance for credit losses on ULC     
 as a percentage of period end ULC 0.73% 0.81% 0.73% 0.81% 0.72%
       
 Nonperforming assets:     
 Nonperforming loans     
 Commercial$7,827 $1,088 $783 $254 $402 
 Commercial real estate 8,378  5,675  6,402  5,970  1,700 
 Residential construction and development 891  708  750  772  813 
 Residential real estate 4,436  4,831  4,787  4,298  4,322 
 Consumer 95  137  124  46  65 
 Total nonperforming loans 21,627  12,439  12,846  11,340  7,302 
 Foreclosed properties     
 Commercial real estate -  297  297  297  297 
 Commercial construction and development 1,253  1,253  2,187  2,187  2,187 
 Residential construction and development 1,924  1,924  1,924  2,161  2,293 
 Residential real estate 255  255  97  97  351 
 Total foreclosed properties 3,432  3,729  4,505  4,742  5,128 
 Total nonperforming assets$25,059 $16,168 $17,351 $16,082 $12,430 
       
 Nonperforming loans to period end loans 0.58% 0.34% 0.36% 0.32% 0.24%
 Nonperforming assets to period end assets 0.54% 0.35% 0.38% 0.35% 0.31%
       
 


SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF)    
Loans Past Due 30-89 Days (unaudited)     
       
Dollars in thousands3/31/202412/31/20239/30/20236/30/20233/31/2023
       
 Commercial$183 $1,152 $3,300 $1,006 $463 
 Commercial real estate 281  1,711  781  513  1,000 
 Construction and development -  570  793  161  3,459 
 Residential real estate 4,570  6,114  4,620  4,933  2,311 
 Consumer 379  401  440  389  252 
 Other 10  43  37  17  13 
 Total$5,423 $9,991 $9,971 $7,019 $7,498 
       
 


SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF)          
Average Balance Sheet, Interest Earnings & Expenses and Average Rates       
Q1 2024 vs Q4 2023 vs Q1 2023 (unaudited)          
             
 Q1 2024 Q4 2023 Q1 2023 
 AverageEarnings /Yield / AverageEarnings /Yield / AverageEarnings /Yield / 
Dollars in thousandsBalancesExpenseRate BalancesExpenseRate BalancesExpenseRate 
             
ASSETS            
Interest earning assets            
Loans, net of unearned interest (1)           
Taxable$3,686,788 $59,204 6.46% $3,688,505 $59,802 6.43% $3,087,068 $45,421 5.97% 
Tax-exempt (2) 4,427  57 5.18%  4,357  68 6.19%  6,086  81 5.40% 
Securities            
Taxable 413,656  5,025 4.89%  410,211  5,129 4.96%  314,004  3,412 4.41% 
Tax-exempt (2) 184,810  1,413 3.08%  206,375  1,784 3.43%  216,430  1,781 3.34% 
Interest bearing deposits other banks           
and Federal funds sold 29,287  132 1.81%  31,053  122 1.56%  34,330  171 2.02% 
Total interest earning assets 4,318,968  65,831 6.13%  4,340,501  66,905 6.12%  3,657,918  50,866 5.64% 
             
Noninterest earning assets            
Cash & due from banks 24,037     22,485     17,387    
Premises & equipment 62,773     63,298     54,112    
Intangible assets 74,057     75,043     62,024    
Other assets 194,694     215,821     190,533    
Allowance for loan credit losses (48,897)    (47,834)    (39,507)   
Total assets$4,625,632    $4,669,314    $3,942,467    
             
 LIABILITIES AND SHAREHOLDERS' EQUITY          
             
Liabilities            
Interest bearing liabilities            
Interest bearing            
demand deposits 2,126,722  15,480 2.93%  2,170,953  16,196 2.96%  1,819,505  10,796 2.41% 
Savings deposits 442,122  1,822 1.66%  459,277  1,986 1.72%  480,207  1,917 1.62% 
Time deposits 531,125  4,128 3.13%  508,383  3,235 2.52%  389,252  1,287 1.34% 
Short-term borrowings 298,325  2,661 3.59%  309,657  2,791 3.58%  166,365  824 2.01% 
Long-term borrowings and            
subordinated debentures 124,060  1,508 4.89%  123,954  1,515 4.85%  123,599  1,462 4.80% 
Total interest bearing liabilities 3,522,354  25,599 2.92%  3,572,224  25,723 2.86%  2,978,928  16,286 2.22% 
             
Noninterest bearing liabilities            
Demand deposits 605,190     621,082     557,209    
Other liabilities 54,513     54,160     43,508    
Total liabilities 4,182,057     4,247,466     3,579,645    
             
Shareholders' equity - preferred 14,920     14,920     14,920    
Shareholders' equity - common 428,655     406,928     347,902    
Total liabilities and            
shareholders' equity$4,625,632    $4,669,314    $3,942,467    
             
NET INTEREST EARNINGS $40,232    $41,182    $34,580   
             
NET INTEREST MARGIN  3.75%   3.76%   3.83% 
             
(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 $309,000, $389,000, and $391,000 for Q1 2024,
Q4 2023 and Q1 2023, respectively.          
             
 


Contact: Robert S. Tissue, Executive Vice President & CFO
Telephone: (304) 530-0552
Email: rtissue@summitfgi.com

 


FAQ

What were Summit Financial Group's first-quarter earnings per share in 2024?

Summit Financial Group reported first-quarter earnings of $1.14 per share in 2024.

What was Summit Financial Group's net income in the first quarter of 2024?

Summit Financial Group reported a net income of $16.8 million in the first quarter of 2024.

What is the pending merger that Summit Financial Group is involved in?

Summit Financial Group is involved in a pending merger of equals with Burke & Herbert Financial Services Corp.

How much did TBVPCS increase by in the first quarter of 2024?

Tangible Book Value Per Common Share (TBVPCS) increased by $1.02 to $24.91 in the first quarter of 2024.

What was the percentage increase in total loans for Summit Financial Group in the first quarter of 2024?

Total loans for Summit Financial Group increased by 0.4% in the first quarter of 2024.

Summit Financial Group, Inc.

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About SMMF

summit financial group, inc. is a financial holding company which provides community banking and insurance services . summit’s community banking operations consist of 15 banking offices located in the eastern panhandle and south central regions of west virginia and in the shenandoah valley and northern regions of virginia. summit financial group inc.’s affiliate entities are: summit community bank, a state chartered community bank , and summit insurance services, llc, a full lines insurance agency.