Summit Financial Group Reports First Quarter 2014 Results

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MOOREFIELD, W.Va., April 30, 2014 (GLOBE NEWSWIRE) -- Summit Financial Group, Inc. ("Company" or "Summit") (Nasdaq:SMMF) today reported first quarter 2014 net income applicable to common shares of $2.20 million, or $0.25 per diluted share, compared to $1.60 million, or $0.19 per diluted share, for the first quarter of 2013, representing an increase of 37.3%, or 31.6% per diluted share. Q1 2014 earnings compared to Q1 2013 were positively impacted by a $500,000 decrease in provision for loan losses and a $280,000 increase in net interest income.

Excluding from first quarter 2014 (on a pre-tax basis) realized securities losses of $22,000, losses on sales of foreclosed properties of $75,000, and write-downs of foreclosed properties of $928,000, Q1 2014 earnings would have approximated $2.84 million, or $0.32 per diluted share. Excluding from Q1 2013 (on a pre-tax basis) realized securities gains of $42,000, losses on sales of foreclosed properties of $40,000, charges for other-than-temporary impairment ("OTTI") of securities of $54,000 and write-downs of foreclosed properties of $929,000, Q1 2013 earnings would have approximated $2.22 million, or $0.26 per diluted share.

Highlights for Q1 2014 include:

  • Nonperforming assets declined for the eighth consecutive quarter, reaching its lowest level since Q4 2008; foreclosed properties are at the lowest level since Q4 2009.
  • Net interest margin increased 9 basis points quarter over quarter and 10 basis points compared to Q1 2013.
  • Achieved $24.1 million in loan growth.
  • Recorded charges of $928,000 to write-down foreclosed properties compared to $644,000 in Q4 2013 and $929,000 in Q1 2013.
  • Noninterest expenses remained well-controlled decreasing nearly 1% compared to Q1 2013.
  • Summit's regulatory capital ratios are at the highest levels in fourteen years.

H. Charles Maddy III, President and Chief Executive Officer of Summit, commented, "I was very pleased by our performance this past quarter. We improved our earnings markedly, grew our loan portfolio, increased our revenues, enhanced our net interest margin, strengthened our capital levels and reduced our portfolio of problem assets. Reducing our portfolio of problem assets remains an important priority, and we are very pleased to have reduced nonperforming assets in each of the six most recent quarters. While our disposal of foreclosed properties is still not at the pace we would like, we are encouraged to observe modest improvement in local real estate market conditions. We anticipate earnings may continue to fluctuate from quarter-to-quarter in the near term as our foreclosed properties are re-appraised and written-down to estimated fair values on an ongoing basis."

Results from Operations

Total revenue for first quarter 2014, consisting of net interest income and noninterest income, grew 2.5 percent to $12.8 million compared to $12.5 million for the first quarter 2013. Total revenue excluding realized securities losses of $22,000 for Q1 2014 and excluding $42,000 in realized securities gains and $54,000 OTTI of securities from Q1 2013 was $12.8 million for first quarter 2014 compared to $12.5 million in the prior-year quarter.

For the first quarter of 2014, net interest income was $10.0 million, an increase of 2.9 percent from the $9.8 million reported in the prior-year first quarter and increased $35,000 compared to the linked quarter. The net interest margin for first quarter 2014 was 3.33 percent compared to 3.23 percent for the year-ago quarter, and 3.24 percent for the linked quarter.

Noninterest income, consisting primarily of insurance commissions from Summit's insurance agency subsidiary and service fee income from community banking activities, for first quarter 2014 was $2.78 million compared to $2.75 million for the comparable period of 2013. Excluding realized securities gains/losses and OTTI of securities, noninterest income was $2.81 million for first quarter 2014, compared to $2.76 million reported for first quarter 2013.

The first quarter 2014 provision for loan losses remained unchanged compared to the linked quarter at $1.00 million, and decreased from the $1.50 million for the year-ago quarter.

Noninterest expense continues to be well-controlled. Total noninterest expense decreased 0.7% to $8.50 million compared to $8.56 million for the prior-year first quarter. Excluding from noninterest expense (on a pre-tax basis) losses on sales of foreclosed properties of $75,000 in Q1 2014 and $40,000 in Q1 2013 and write-downs of foreclosed properties of $928,000 in Q1 2014 and $929,000 in Q1 2013, noninterest expense would have approximated $7.50 million for Q1 2014 compared to $7.59 million for the comparable period of 2013.

Balance Sheet

At March 31, 2014, total assets were $1.41 billion, an increase of $19.9 million, or 1.4 percent since December 31, 2013. Total loans, net of unearned fees and allowance for loan losses, were $962.7 million at March 31, 2014, up $25.6 million, or 2.7 percent, from the $937.1 million reported at year-end 2013.

At March 31, 2014, deposits were $1.05 billion, an increase of $48.8 million, or 4.9 percent, since year end 2013. During first quarter 2014, checking and savings grew by $15.9 million and $35.4 million, respectively, or 5.7 percent and 18.3 percent, respectively. Long-term borrowings and subordinated debentures declined by 20.0 percent since year end 2013, as the Company paid down $40.0 million in maturing borrowings, which was funded by checking and savings deposits.

Asset Quality

As of March 31, 2014, nonperforming assets ("NPAs"), consisting of nonperforming loans, foreclosed properties, and repossessed assets, were $69.2 million, or 4.92 percent of assets. This compares to $72.3 million, or 5.22 percent of assets at the linked quarter, and $90.9 million, or 6.54 percent of assets, at first quarter 2013.

First quarter 2014 net loan charge-offs were $2.59 million, or 1.08 percent of average loans annualized; while adding $1.00 million to the allowance for loan losses. The allowance for loan losses stood at $11.1 million, or 1.14 percent of total loans at March 31, 2014, compared to 1.33 percent at year-end 2013.

Capital Adequacy

Shareholders' equity was $114.5 million as of March 31, 2014 compared to $111.1 million December 31, 2013.

Summit's depository institution, Summit Community Bank, Inc. (the "Bank"), remains well in excess of regulatory requirements for a "well capitalized" institution at March 31, 2014. The Bank's total risk-based capital ratio improved to 15.6 percent at March 31, 2014 compared to 15.7 percent at December 31, 2013, while its Tier 1 leverage capital ratio improved to 10.6 from the 10.4 percent reported at December 31, 2013.

About the Company

Summit Financial Group, Inc. is a $1.41 billion financial holding company headquartered in Moorefield, West Virginia. Summit provides community banking services primarily in the Eastern Panhandle and South Central regions of West Virginia and the Northern and Shenandoah Valley regions of Virginia, through its bank subsidiary, Summit Community Bank, Inc., which operates fifteen banking locations. Summit also operates Summit Insurance Services, LLC in Moorefield, West Virginia and Leesburg, Virginia.

FORWARD-LOOKING STATEMENTS

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

Although we believe the expectations reflected in such forward-looking statements are reasonable, actual results may differ materially. Factors that might cause such a difference include changes in interest rates and interest rate relationships; demand for products and services; the degree of competition by traditional and non-traditional competitors; changes in banking laws and regulations; changes in tax laws; the impact of technological advances; the outcomes of contingencies; trends in customer behavior as well as their ability to repay loans; and changes in the national and local economies. We undertake no obligation to revise these statements following the date of this press release.

NON-GAAP FINANCIAL MEASURES

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

SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF)
Quarterly Performance Summary --- Q1 2014 vs Q1 2013
For the Quarter Ended Percent
Dollars in thousands 3/31/2014 3/31/2013 Change
Condensed Statements of Income
Interest income
Loans, including fees $ 12,216 $ 12,904 -5.3%
Securities 1,852 1,664 11.3%
Other 2 1 100.0%
Total interest income 14,070 14,569 -3.4%
Interest expense
Deposits 2,241 2,768 -19.0%
Borrowings 1,791 2,043 -12.3%
Total interest expense 4,032 4,811 -16.2%
Net interest income 10,038 9,758 2.9%
Provision for loan losses 1,000 1,500 -33.3%
Net interest income after provision for loan losses 9,038 8,258 9.4%
Noninterest income
Insurance commissions 1,181 1,184 -0.3%
Service fees related to deposit accounts 1,043 1,012 3.1%
Realized securities gains (losses) (22) 42 -152.4%
Other-than-temporary impairment of securities -- (54) -100.0%
Other income 581 564 3.0%
Total noninterest income 2,783 2,748 1.3%
Noninterest expense
Salaries and employee benefits 3,980 4,117 -3.3%
Net occupancy expense 541 457 18.4%
Equipment expense 566 598 -5.4%
Professional fees 316 251 25.9%
FDIC premiums 502 540 -7.0%
Foreclosed properties expense 254 279 -9.0%
Loss (gain) on sale of foreclosed properties 75 40 87.5%
Write-downs of foreclosed properties 928 929 -0.1%
Other expenses 1,336 1,351 -1.1%
Total noninterest expense 8,498 8,562 -0.7%
Income before income taxes 3,323 2,444 36.0%
Income taxes 934 651 43.5%
Net income 2,389 1,793 33.2%
Preferred stock dividends 193 194 -0.5%
Net income applicable to common shares $ 2,196 $ 1,599 37.3%
SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF)
Quarterly Performance Summary --- Q1 2014 vs Q1 2013
For the Quarter Ended Percent
3/31/2014 3/31/2013 Change
Per Share Data
Earnings per common share
Basic $ 0.29 $ 0.22 31.8%
Diluted $ 0.25 $ 0.19 31.6%
Average shares outstanding
Basic 7,453,370 7,432,254 0.3%
Diluted 9,628,927 9,613,886 0.2%
Performance Ratios
Return on average equity (A) 8.46% 6.55% 29.2%
Return on average assets 0.69% 0.52% 32.7%
Net interest margin 3.33% 3.23% 3.1%
Efficiency ratio (B) 54.13% 56.00% -3.3%

NOTE (A) – Net income divided by total shareholders' equity.

NOTE (B) – Computed on a tax equivalent basis excluding nonrecurring income and expense items and amortization of intangibles.

SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF)
Five Quarter Performance Summary
For the Quarter Ended
Dollars in thousands 3/31/2014 12/31/2013 9/30/2013 6/30/2013 3/31/2013
Condensed Statements of Income
Interest income
Loans, including fees $ 12,216 $ 12,507 $ 12,532 $ 12,799 $ 12,904
Securities 1,852 1,850 1,512 1,507 1,664
Other 2 2 1 2 1
Total interest income 14,070 14,359 14,045 14,308 14,569
Interest expense
Deposits 2,241 2,317 2,487 2,820 2,768
Borrowings 1,791 2,039 2,020 1,984 2,043
Total interest expense 4,032 4,356 4,507 4,804 4,811
Net interest income 10,038 10,003 9,538 9,504 9,758
Provision for loan losses 1,000 1,000 1,000 1,000 1,500
Net interest income after provision for loan losses 9,038 9,003 8,538 8,504 8,258
Noninterest income
Insurance commissions 1,181 1,056 1,057 1,132 1,184
Service fees related to deposit accounts 1,043 1,124 1,106 1,085 1,012
Realized securities gains (losses) (22) 124 132 (57) 42
Other-than-temporary impairment of securities -- -- (38) (27) (54)
Other income 581 592 606 570 564
Total noninterest income 2,783 2,896 2,863 2,703 2,748
Noninterest expense
Salaries and employee benefits 3,980 4,024 4,050 3,987 4,117
Net occupancy expense 541 466 454 476 457
Equipment expense 566 580 578 559 598
Professional fees 316 295 263 360 251
FDIC premiums 502 502 503 515 540
Foreclosed properties expense 254 209 262 295 279
Loss (gain) on sale of foreclosed properties 75 (28) (17) 523 40
Write-downs of foreclosed properties 928 644 654 1,494 929
Other expenses 1,336 1,732 1,484 1,329 1,351
Total noninterest expense 8,498 8,424 8,231 9,538 8,562
Income before income taxes 3,323 3,475 3,170 1,669 2,444
Income taxes 934 687 898 452 651
Net income 2,389 2,788 2,272 1,217 1,793
Preferred stock dividends 193 194 194 194 194
Net income applicable to common shares $ 2,196 $ 2,594 $ 2,078 $ 1,023 $ 1,599
SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF)
Five Quarter Performance Summary
For the Quarter Ended
3/31/2014 12/31/2013 9/30/2013 6/30/2013 3/31/2013
Per Share Data
Earnings per common share
Basic $ 0.29 $ 0.35 $ 0.28 $ 0.14 $ 0.22
Diluted $ 0.25 $ 0.29 $ 0.24 $ 0.13 $ 0.19
Average shares outstanding
Basic 7,453,370 7,450,379 7,443,865 7,438,401 7,432,254
Diluted 9,628,927 9,624,312 9,621,957 9,619,585 9,613,886
Performance Ratios
Return on average equity (A) 8.46% 10.15% 8.49% 4.40% 6.55%
Return on average assets 0.69% 0.80% 0.67% 0.35% 0.52%
Net interest margin 3.33% 3.24% 3.15% 3.12% 3.23%
Efficiency ratio - (B) 54.13% 57.31% 56.22% 56.52% 56.00%

NOTE (A) – Net income divided by average total shareholders' equity.

NOTE (B) – Computed on a tax equivalent basis excluding nonrecurring income and expense items and amortization of intangibles.

SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF)
Selected Balance Sheet Data
For the Quarter Ended
Dollars in thousands, except per share amounts 3/31/2014 12/31/2013 9/30/2013 6/30/2013 3/31/2013
Assets
Cash and due from banks $ 3,827 $ 3,442 $ 4,571 $ 4,336 $ 3,906
Interest bearing deposits other banks 13,424 8,340 11,532 7,971 7,915
Securities 281,865 288,780 291,258 291,180 283,054
Loans, net 962,714 937,070 939,169 925,979 945,741
Property held for sale 52,241 53,392 45,303 47,258 54,625
Premises and equipment, net 20,457 20,623 20,780 20,936 21,023
Intangible assets 7,861 7,949 8,036 8,124 8,212
Cash surrender value of life insurance policies 35,881 35,611 35,257 30,027 29,791
Other assets 27,847 31,020 31,881 34,159 35,931
Total assets $ 1,406,117 $ 1,386,227 $ 1,387,787 $ 1,369,970 $ 1,390,198
Liabilities and Shareholders' Equity
Deposits $ 1,052,630 $ 1,003,812 $ 1,016,735 $ 1,038,163 $ 1,066,318
Short-term borrowings 68,974 62,769 54,163 16,762 5,960
Long-term borrowings and subordinated debentures 159,881 199,905 199,929 199,954 199,977
Other liabilities 10,105 8,669 8,155 7,880 7,928
Shareholders' equity 114,527 111,072 108,805 107,211 110,015
Total liabilities and shareholders' equity $ 1,406,117 $ 1,386,227 $ 1,387,787 $ 1,369,970 $ 1,390,198
Book value per common share (A) $ 11.91 $ 11.55 $ 11.32 $ 11.15 $ 11.45
Tangible book value per common share (A) $ 11.09 $ 10.72 $ 10.48 $ 10.31 $ 10.60
Tangible equity / Tangible assets 7.6% 7.5% 7.3% 7.3% 7.4%

NOTE (A) – Assumes conversion of convertible preferred stock

SUMMIT FINANCIAL GROUP INC. (NASDAQ: SMMF)
Regulatory Capital Ratios
3/31/2014 12/31/2013 9/30/2013 6/30/2013 3/31/2013
Summit Financial Group, Inc.
Total Risk Based Capital 14.2% 14.5% 14.5% 14.4% 14.1%
Tier 1 Risk-based Capital 12.4% 12.4% 12.1% 12.1% 11.8%
Tier 1 Leverage Ratio 9.0% 8.9% 8.9% 8.6% 8.4%
Summit Community Bank, Inc.
Total Risk Based Capital 15.6% 15.7% 15.5% 15.6% 15.2%
Tier 1 Risk-based Capital 14.5% 14.5% 14.3% 14.3% 13.9%
Tier 1 Leverage Ratio 10.6% 10.4% 10.4% 10.2% 10.0%
SUMMIT FINANCIAL GROUP INC. (NASDAQ: SMMF)
Loan Composition
Dollars in thousands 3/31/2014 12/31/2013 9/30/2013 6/30/2013 3/31/2013
Commercial $ 93,517 $ 88,352 $ 83,844 $ 78,964 $ 86,877
Commercial real estate
Owner occupied 150,025 149,618 151,261 149,660 151,942
Non-owner occupied 297,197 280,790 279,412 277,773 288,475
Construction and development
Land and development 67,342 71,453 73,089 73,426 76,277
Construction 18,327 15,155 12,323 7,634 5,782
Residential real estate
Non-jumbo 215,665 212,946 215,058 216,759 213,965
Jumbo 51,406 53,406 59,701 58,567 62,849
Home equity 56,161 54,844 53,674 53,774 53,765
Consumer 19,106 19,889 20,472 20,147 19,638
Other 5,037 3,276 3,374 3,397 3,191
Total loans, net of unearned fees 973,783 949,729 952,208 940,101 962,761
Less allowance for loan losses 11,069 12,659 13,039 14,122 17,020
Loans, net $ 962,714 $ 937,070 $ 939,169 $ 925,979 $ 945,741
SUMMIT FINANCIAL GROUP INC. (NASDAQ: SMMF)
Deposit Composition
Dollars in thousands 3/31/2014 12/31/2013 9/30/2013 6/30/2013 3/31/2013
Non interest bearing checking $ 99,445 $ 92,837 $ 99,109 $ 92,147 $ 93,125
Interest bearing checking 195,898 186,578 186,702 187,244 181,327
Savings 228,854 193,446 193,285 196,069 197,587
Time deposits 528,433 530,951 537,639 562,703 594,279
Total deposits $ 1,052,630 $ 1,003,812 $ 1,016,735 $ 1,038,163 $ 1,066,318
SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF)
Asset Quality Information
For the Quarter Ended
Dollars in thousands 3/31/2014 12/31/2013 9/30/2013 6/30/2013 3/31/2013
Gross loan charge-offs $ 2,862 $ 1,669 $ 2,825 $ 3,968 $ 2,497
Gross loan recoveries (272) (289) (742) (70) (84)
Net loan charge-offs $ 2,590 $ 1,380 $ 2,083 $ 3,898 $ 2,413
Net loan charge-offs to average loans (annualized) 1.08% 0.58% 0.89% 1.63% 1.00%
Allowance for loan losses $ 11,069 $ 12,659 $ 13,039 $ 14,122 $ 17,020
Allowance for loan losses as a percentage of period end loans 1.14% 1.33% 1.37% 1.50% 1.77%
Nonperforming assets:
Nonperforming loans
Commercial $ 866 $ 1,224 $ 2,557 $ 3,996 $ 4,763
Commercial real estate 2,834 2,318 3,795 1,695 1,525
Commercial construction and development 3,653 3,782 3,761 -- --
Residential construction and development 6,599 9,048 9,128 11,505 13,076
Residential real estate 2,890 2,446 12,385 13,605 16,869
Consumer 73 128 145 91 72
Total nonperforming loans 16,915 18,946 31,771 30,892 36,305
Foreclosed properties
Commercial -- -- -- -- --
Commercial real estate 8,523 9,903 9,961 10,310 11,779
Commercial construction and development 11,097 11,125 11,161 11,492 16,670
Residential construction and development 20,640 20,485 20,585 21,591 21,929
Residential real estate 11,981 11,879 3,596 3,865 4,247
Total foreclosed properties 52,241 53,392 45,303 47,258 54,625
Other repossessed assets 28 8 -- 2 19
Total nonperforming assets $ 69,184 $ 72,346 $ 77,074 $ 78,152 $ 90,949
Nonperforming loans to period end loans 1.74% 1.99% 3.34% 3.29% 3.77%
Nonperforming assets to period end assets 4.92% 5.22% 5.55% 5.70% 6.54%
Loans Past Due 30-89 Days
For the Quarter Ended
In thousands 3/31/2014 12/31/2013 9/30/2013 6/30/2013 3/31/2013
Commercial $ 52 $ 74 $ 30 $ 199 $ 27
Commercial real estate 1,310 1,809 1,757 626 2,161
Construction and development 754 1,628 154 698 64
Residential real estate 3,847 4,332 4,697 4,479 4,522
Consumer 219 292 229 286 277
Other -- -- 50 53 --
Total $ 6,182 $ 8,135 $ 6,917 $ 6,341 $ 7,051
SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF)
Average Balance Sheet, Interest Earnings & Expenses and Average Rates
Q1 2014 vs Q1 2013
Q1 2014 Q1 2013
Average Earnings / Yield / Average Earnings / Yield /
Dollars in thousands Balances Expense Rate Balances Expense Rate
ASSETS
Interest earning assets
Loans, net of unearned interest
Taxable $ 957,482 $ 12,145 5.14% $ 960,509 $ 12,833 5.42%
Tax-exempt 5,830 108 7.51% 5,965 106 7.21%
Securities
Taxable 216,900 1,281 2.40% 216,306 1,030 1.93%
Tax-exempt 75,437 864 4.64% 79,147 961 4.92%
Interest bearing deposits other banks and Federal funds sold 8,923 2 0.09% 7,510 1 0.05%
Total interest earning assets 1,264,572 14,400 4.62% 1,269,437 14,931 4.77%
Noninterest earning assets
Cash & due from banks 3,897 4,240
Premises & equipment 20,582 21,101
Other assets 116,421 114,701
Allowance for loan losses (12,969) (17,572)
Total assets $ 1,392,503 $ 1,391,907
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Interest bearing liabilities
Interest bearing demand deposits $ 186,982 $ 52 0.11% $ 174,724 $ 70 0.16%
Savings deposits 208,529 319 0.62% 195,556 309 0.64%
Time deposits 530,117 1,870 1.43% 574,545 2,388 1.69%
Short-term borrowings 75,177 52 0.28% 27,834 17 0.25%
Long-term borrowings and subordinated debentures 174,559 1,739 4.04% 209,255 2,027 3.93%
Total interest bearing liabilities 1,175,364 4,032 1.39% 1,181,914 4,811 1.65%
Noninterest bearing liabilities
Demand deposits 95,138 92,926
Other liabilities 9,037 7,653
Total liabilities 1,279,539 1,282,493
Shareholders' equity - preferred 9,291 9,325
Shareholders' equity - common 103,673 100,089
Total liabilities and shareholders' equity $ 1,392,503 $ 1,391,907
NET INTEREST EARNINGS $ 10,368 $ 10,120
NET INTEREST MARGIN 3.33% 3.23%
SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF)
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures
For the Quarter Ended
Dollars in thousands 3/31/2014 3/31/2013 12/31/2013
Net income applicable to common shares - excluding realized securities gains, gains/losses on sales of assets, other-than-temporary impairment of securities and write-downs of foreclosed properties $ 2,842 $ 2,217 $ 2,904
Realized securities gains (losses) (22) 42 124
Applicable income tax effect 8 (16) (46)
Gain (loss) on sale of foreclosed properties (75) (40) 28
Applicable income tax effect 28 15 (10)
Other-than-temporary impairment of securities -- (54) --
Applicable income tax effect -- 20 --
Write-downs foreclosed properties (928) (929) (644)
Applicable income tax effect 343 344 238
(646) (618) (310)
GAAP net income applicable to common shares $ 2,196 $ 1,599 $ 2,594
Diluted earnings per common share - excluding realized securities gains, gains/losses on sales of assets, other-than-temporary impairment of securities and write-downs of foreclosed properties $ 0.32 $ 0.26 $ 0.32
Realized securities gains (losses) -- -- 0.01
Applicable income tax effect -- -- --
Gain (loss) on sale of foreclosed properties (0.01) -- --
Applicable income tax effect -- -- --
Other-than-temporary impairment of securities -- (0.01) --
Applicable income tax effect -- -- --
Write-downs of foreclosed properties (0.10) (0.10) (0.07)
Applicable income tax effect 0.04 0.04 0.03
(0.07) (0.07) (0.03)
GAAP diluted earnings per common share $ 0.25 $ 0.19 $ 0.29
SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF)
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures
For the Quarter Ended
Dollars in thousands 3/31/2014 3/31/2013 12/31/2013
Total revenue - excluding realized securities gains and other-than-temporary impairment of securities $ 12,843 $ 12,518 $ 12,775
Realized securities gains/(losses) (22) 42 124
Other-than-temporary impairment of securities -- (54) --
(22) (12) 124
GAAP total revenue $ 12,821 $ 12,506 $ 12,899
Total noninterest income - excluding realized securities gains and other-than-temporary impairment of securities $ 2,805 $ 2,760 $ 2,772
Realized securities gains/(losses) (22) 42 124
Other-than-temporary impairment of securities -- (54) --
(22) (12) 124
GAAP total noninterest income $ 2,783 $ 2,748 $ 2,896
Total noninterest expense - excluding gains/losses on sales of foreclosed properties and write-downs of foreclosed properties $ 7,495 $ 7,593 $ 7,808
(Gains)/losses on sales of foreclosed properties 75 40 (28)
Write-downs of foreclosed properties 928 929 644
1,003 969 616
GAAP total noninterest expense $ 8,498 $ 8,562 $ 8,424

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

Source:Summit Financial Group, Inc.