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Summit Financial Group Reports First Quarter 2015 Results

MOOREFIELD, W. Va., April 27, 2015 (GLOBE NEWSWIRE) -- Summit Financial Group, Inc. ("Company" or "Summit") (Nasdaq:SMMF) today reported first quarter 2015 net income applicable to common shares of $4.29 million, or $0.41 per diluted share, compared to $2.20 million, or $0.25 per diluted share, for the first quarter of 2014, representing an increase of 95.1 percent, or 64.0 percent per diluted share. Q1 2015 earnings compared to Q1 2014 were positively impacted by a $1.48 million increase in net interest income and a $750,000 decline in provision for loan losses.

Excluding from first quarter 2015 (on a pre-tax basis) realized securities gains of $480,000, losses on sales of foreclosed properties of $150,000, and write-downs of foreclosed properties of $572,000, Q1 2015 core earnings approximated $4.44 million, or $0.42 per diluted share. Excluding from Q1 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 core earnings approximated $2.84 million, or $0.32 per diluted share.

Highlights for Q1 2015 include:

  • Net interest margin increased 17 basis points compared to the linked quarter and 26 basis points since Q1 2014.
  • Achieved loan growth of $19.5 million or 1.9 percent (non-annualized) in Q1 2015. Loans have grown $76.7 million or 7.9 percent since Q1 2014.
  • Core revenue increased $555,000 or 4.1 percent (non-annualized) compared to Q4 2014, and $1.3 million or 10.4 percent compared to Q1 2014.
  • Nonperforming assets declined for the thirteenth consecutive quarter. Compared to the linked quarter, nonperforming assets as a percentage of total assets declined from 3.48 percent to 3.18 percent, reaching its lowest level since Q2 2008; foreclosed properties are at the lowest level since Q3 2009.
  • Recorded charges of $572,000 to write-down foreclosed properties compared to $300,000 in Q4 2014 and $928,000 in Q1 2014.

H. Charles Maddy III, President and Chief Executive Officer of Summit, commented, "We are particularly pleased to report our Q1 2015 operating results. Our strong core earnings, growing loan portfolio, increasing revenues, improving net interest margin, strengthened capital and reductions in our portfolio of problem assets during the quarter are all very gratifying to note; but perhaps more importantly, these results represent a continuation of recent similar trends, giving us optimism as we look forward to the remainder of 2015 and beyond."

Results from Operations

Total revenue for first quarter 2015, consisting of net interest income and noninterest income, grew 14.3 percent to $14.7 million compared to $12.8 million for the first quarter 2014.

Total core revenue (excluding nonrecurring items, enumerated above) was $14.2 million for first quarter 2015 compared to $12.8 million for the same prior-year quarter, an increase of 10.4 percent.

For the first quarter of 2015, net interest income was $11.5 million, an increase of 14.8 percent from the $10.0 million reported in the prior-year first quarter and increased $569,000 compared to the linked quarter. The net interest margin for first quarter 2015 was 3.59 percent compared to 3.33 percent for the year-ago quarter, and 3.42 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 2015 was $3.14 million compared to $2.78 million for the comparable period of 2014. Excluding realized securities gains, noninterest income was $2.66 million for first quarter 2015, compared to $2.81 million reported for first quarter 2014.

Summit recognized $250,000 provision for loan losses in first quarter 2015, compared to none for the linked quarter and $1.0 million for the year-ago quarter.

Core noninterest expense continues to be well-controlled. Total noninterest expense decreased 3.5% to $8.20 million compared to $8.50 million for the prior-year first quarter. Excluding from noninterest expense (on a pre-tax basis) losses on sales of foreclosed properties of $150,000 in Q1 2015 and $75,000 in Q1 2014 and write-downs of foreclosed properties of $572,000 in Q1 2015 and $928,000 in Q1 2014, noninterest expense would have approximated $7.48 million for Q1 2015 compared to $7.50 million for the comparable period of 2014.

Balance Sheet

At March 31, 2015, total assets were $1.46 billion, an increase of $16.9 million, or 1.2 percent since December 31, 2014. Total loans, net of unearned fees and allowance for loan losses, were $1.04 billion at March 31, 2015, up $19.8 million, or 1.9 percent, from the $1.02 billion reported at year-end 2014.

At March 31, 2015, deposits were $1.06 billion, a decrease of $3.0 million, or 0.3 percent, since year end 2014. During Q1 2015, checking declined by $5.8 million or 1.8 percent while savings increased $4.1 million, or 1.6 percent. Long-term borrowings and subordinated debentures declined by 10.8 percent since year end 2014, as the Company prepaid $11.8 million in subordinated debentures, which was funded by short-term borrowings.

Asset Quality

As of March 31, 2015, nonperforming assets ("NPAs"), consisting of nonperforming loans, foreclosed properties, and repossessed assets, were $46.4 million, or 3.18 percent of assets. This compares to $50.2 million, or 3.48 percent of assets at the linked quarter, and $69.2 million, or 4.92 percent of assets, at first quarter 2014.

First quarter 2015 net loan charge-offs were $590,000, or 0.23 percent of average loans on an annualized basis. The allowance for loan losses stood at $10.8 million, or 1.03 percent of total loans at March 31, 2015, compared to 1.08 percent at year-end 2014.

Capital Adequacy

Shareholders' equity was $135.9 million as of March 31, 2015 compared to $131.6 million December 31, 2014. Tangible book value per common share increased to $12.23 at March 31, 2015 compared to $11.86 at December 31, 2014. Summit had 10,586,242 outstanding common shares at March 31, 2015.

At March 31, 2015, Summit's and its depository institution's, Summit Community Bank, Inc.'s (the "Bank's"), regulatory risk-based capital ratios computed in accordance with the new Basel III regulatory capital guidelines effective January 1, 2015, were each well in excess of the regulatory minimum required ratio relative to each plus the respective applicable capital conservation buffer on a fully phased-in basis. Respectively, the Company's and Bank's Tier 1 leverage capital ratios were 10.1 percent and 10.5 percent at March 31, 2015 compared to 9.9 percent and 10.6 percent reported at December 31, 2014.

About the Company

Summit Financial Group, Inc. is a $1.46 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 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 2015 vs Q1 2014
For the Quarter Ended Percent
Dollars in thousands 3/31/2015 3/31/2014 Change
Condensed Statements of Income
Interest income
Loans, including fees $ 12,848 $ 12,216 5.2%
Securities 1,894 1,852 2.3%
Other 1 2 -50.0%
Total interest income 14,743 14,070 4.8%
Interest expense
Deposits 2,071 2,241 -7.6%
Borrowings 1,152 1,791 -35.7%
Total interest expense 3,223 4,032 -20.1%
Net interest income 11,520 10,038 14.8%
Provision for loan losses 250 1,000 -75.0%
Net interest income after provision for loan losses 11,270 9,038 24.7%
Noninterest income
Insurance commissions 1,128 1,181 -4.5%
Service fees related to deposit accounts 976 1,043 -6.4%
Realized securities gains (losses) 480 (22) n/m
Other income 555 581 -4.5%
Total noninterest income 3,139 2,783 12.8%
Noninterest expense
Salaries and employee benefits 4,187 3,980 5.2%
Net occupancy expense 498 541 -7.9%
Equipment expense 535 566 -5.5%
Professional fees 335 316 6.0%
FDIC premiums 330 502 -34.3%
Foreclosed properties expense 208 254 -18.1%
Loss (gain) on sales of foreclosed properties 150 75 100.0%
Write-downs of foreclosed properties 572 928 -38.4%
Other expenses 1,389 1,336 4.0%
Total noninterest expense 8,204 8,498 -3.5%
Income before income taxes 6,205 3,323 86.7%
Income taxes 1,920 934 105.6%
Net income 4,285 2,389 79.4%
Preferred stock dividends -- 193 n/m
Net income applicable to common shares $ 4,285 $ 2,196 95.1%
SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF)
Quarterly Performance Summary -- Q1 2015 vs Q1 2014
For the Quarter Ended Percent
3/31/2015 3/31/2014 Change
Per Share Data
Earnings per common share
Basic $ 0.49 $ 0.29 69.0%
Diluted $ 0.41 $ 0.25 64.0%
Average shares outstanding
Basic 8,815,961 7,453,370 18.3%
Diluted 10,493,323 9,628,927 9.0%
Performance Ratios
Return on average equity (A) 12.79% 8.46% 51.2%
Return on average assets 1.18% 0.69% 71.0%
Net interest margin 3.59% 3.33% 7.8%
Efficiency ratio (B) 49.27% 54.13% -9.0%
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)
Five Quarter Performance Summary
For the Quarter Ended
Dollars in thousands 3/31/2015 12/31/2014 9/30/2014 6/30/2014 3/31/2014
Condensed Statements of Income
Interest income
Loans, including fees $ 12,848 $ 12,666 $ 13,033 $ 12,515 $ 12,216
Securities 1,894 1,784 1,724 1,827 1,852
Other 1 2 3 2 2
Total interest income 14,743 14,452 14,760 14,344 14,070
Interest expense
Deposits 2,071 2,130 2,288 2,335 2,241
Borrowings 1,152 1,371 1,395 1,689 1,791
Total interest expense 3,223 3,501 3,683 4,024 4,032
Net interest income 11,520 10,951 11,077 10,320 10,038
Provision for loan losses 250 -- 250 1,000 1,000
Net interest income after provision for loan losses 11,270 10,951 10,827 9,320 9,038
Noninterest income
Insurance commissions 1,128 1,023 1,105 1,091 1,181
Service fees related to deposit accounts 976 1,113 1,177 1,101 1,043
Realized securities gains (losses) 480 149 128 (43) (22)
Other-than-temporary impairment of securities -- -- -- (1) --
Other income 555 537 503 557 581
Total noninterest income 3,139 2,822 2,913 2,705 2,783
Noninterest expense
Salaries and employee benefits 4,187 4,133 4,026 4,045 3,980
Net occupancy expense 498 495 482 505 541
Equipment expense 535 487 520 513 566
Professional fees 335 452 380 282 316
FDIC premiums 330 315 480 495 502
Foreclosed properties expense 208 239 298 229 254
Loss (gain) on sale of foreclosed properties 150 628 70 54 75
Write-downs of foreclosed properties 572 300 1,580 962 928
Other expenses 1,389 2,061 1,350 1,445 1,336
Total noninterest expense 8,204 9,110 9,186 8,530 8,498
Income before income taxes 6,205 4,663 4,554 3,495 3,323
Income taxes 1,920 1,464 1,218 1,063 934
Net income 4,285 3,199 3,336 2,432 2,389
Preferred stock dividends -- 191 193 193 193
Net income applicable to common shares $ 4,285 $ 3,008 $ 3,143 $ 2,239 $ 2,196
SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF)
Five Quarter Performance Summary
For the Quarter Ended
3/31/2015 12/31/2014 9/30/2014 6/30/2014 3/31/2014
Per Share Data
Earnings per common share
Basic $ 0.49 $ 0.39 $ 0.42 $ 0.30 $ 0.29
Diluted $ 0.41 $ 0.32 $ 0.35 $ 0.25 $ 0.25
Average shares outstanding
Basic 8,815,961 7,796,508 7,457,222 7,457,222 7,453,370
Diluted 10,493,323 9,963,214 9,630,293 9,630,699 9,628,927
Performance Ratios
Return on average equity (A) 12.79% 10.10% 11.13% 8.37% 8.46%
Return on average assets 1.18% 0.89% 0.93% 0.69% 0.69%
Net interest margin 3.59% 3.42% 3.47% 3.32% 3.33%
Efficiency ratio (B) 49.27% 53.07% 51.19% 52.86% 54.13%
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 3/31/2015 12/31/2014 9/30/2014 6/30/2014 3/31/2014
Assets
Cash and due from banks $ 3,850 $ 3,728 $ 3,933 $ 3,749 $ 3,827
Interest bearing deposits other banks 8,437 8,783 9,300 9,970 13,424
Securities 282,135 282,834 282,401 287,883 281,865
Loans, net 1,039,669 1,019,842 993,347 992,816 962,714
Property held for sale 34,368 37,529 47,252 48,783 52,241
Premises and equipment, net 20,208 20,060 20,132 20,301 20,457
Intangible assets 7,648 7,698 7,748 7,798 7,861
Cash surrender value of life insurance policies 36,961 36,700 36,417 36,151 35,881
Other assets 27,216 26,394 28,139 28,507 27,847
Total assets $ 1,460,492 $ 1,443,568 $ 1,428,669 $ 1,435,958 $ 1,406,117
Liabilities and Shareholders' Equity
Deposits $ 1,058,308 $ 1,061,314 $ 1,054,454 $ 1,057,795 $ 1,052,630
Short-term borrowings 148,985 123,633 127,432 91,729 68,974
Long-term borrowings and subordinated debentures 101,602 113,879 114,855 158,331 159,881
Other liabilities 15,708 13,098 10,566 10,638 10,105
Shareholders' equity 135,889 131,644 121,362 117,465 114,527
Total liabilities and shareholders' equity $ 1,460,492 $ 1,443,568 $ 1,428,669 $ 1,435,958 $ 1,406,117
Book value per common share (A) $ 12.84 $ 12.60 $ 12.62 $ 12.21 $ 11.91
Tangible book value per common share (A) $ 12.11 $ 11.86 $ 11.81 $ 11.40 $ 11.09
Tangible equity to tangible assets 8.8% 8.6% 8.0% 7.7% 7.6%
Tangible common equity to tangible assets 8.8% 8.0% 7.3% 7.0% 7.0%
NOTE (A) – Computed on a fully-diluted basis assuming conversion of convertible preferred stock
SUMMIT FINANCIAL GROUP INC. (NASDAQ: SMMF)
Regulatory Capital Ratios (A)
3/31/2015 12/31/2014 9/30/2014 6/30/2014 3/31/2014
Summit Financial Group, Inc.
CET1 Risk-based Capital 11.3% n/a n/a n/a n/a
Tier 1 Risk-based Capital 13.0% 13.3% 12.5% 12.4% 12.4%
Total Risk-based Capital 14.0% 14.9% 14.3% 14.2% 14.2%
Tier 1 Leverage Ratio 10.1% 9.9% 9.2% 9.0% 9.0%
Summit Community Bank, Inc.
CET1 Risk-based Capital 13.5% n/a n/a n/a n/a
Tier 1 Risk-based Capital 13.5% 14.2% 14.4% 14.5% 14.5%
Total Risk-based Capital 14.5% 15.3% 15.5% 15.6% 15.6%
Tier 1 Leverage Ratio 10.5% 10.6% 10.5% 10.6% 10.6%
NOTE (A) – Computed in accordance with Basel III regulatory capital guidelines beginning January 1, 2015
SUMMIT FINANCIAL GROUP INC. (NASDAQ: SMMF)
Loan Composition
Dollars in thousands 3/31/2015 12/31/2014 9/30/2014 6/30/2014 3/31/2014
Commercial $ 89,928 $ 88,590 $ 83,762 $ 90,096 $ 93,517
Commercial real estate
Owner occupied 180,269 157,783 156,765 154,260 150,025
Non-owner occupied 325,764 317,136 314,577 314,439 297,197
Construction and development
Land and development 66,558 67,881 61,088 64,246 67,342
Construction 19,094 28,591 27,239 20,902 18,327
Residential real estate
Non-jumbo 219,938 220,071 218,125 219,569 215,665
Jumbo 50,492 52,879 51,917 52,487 51,406
Home equity 68,894 67,115 64,256 61,248 56,161
Consumer 18,485 19,456 19,906 19,777 19,106
Other 11,074 11,507 6,753 6,798 5,037
Total loans, net of unearned fees 1,050,496 1,031,009 1,004,388 1,003,822 973,783
Less allowance for loan losses 10,827 11,167 11,041 11,006 11,069
Loans, net $ 1,039,669 $ 1,019,842 $ 993,347 $ 992,816 $ 962,714
SUMMIT FINANCIAL GROUP INC. (NASDAQ: SMMF)
Deposit Composition
Dollars in thousands 3/31/2015 12/31/2014 9/30/2014 6/30/2014 3/31/2014
Non interest bearing checking $ 117,049 $ 115,427 $ 104,442 $ 106,134 $ 99,445
Interest bearing checking 196,606 204,030 195,183 187,855 195,898
Savings 257,687 253,578 255,880 243,323 228,854
Time deposits 486,966 488,279 498,949 520,483 528,433
Total deposits $ 1,058,308 $ 1,061,314 $ 1,054,454 $ 1,057,795 $ 1,052,630
SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF)
Asset Quality Information
For the Quarter Ended
Dollars in thousands 3/31/2015 12/31/2014 9/30/2014 6/30/2014 3/31/2014
Gross loan charge-offs $ 782 $ 362 $ 297 $ 1,312 $ 2,862
Gross loan recoveries (192) (488) (82) (249) (272)
Net loan charge-offs $ 590 $ (126) $ 215 $ 1,063 $ 2,590
Net loan charge-offs to average loans (annualized) 0.23% -0.05% 0.09% 0.43% 1.08%
Allowance for loan losses $ 10,827 $ 11,167 $ 11,041 $ 11,006 $ 11,069
Allowance for loan losses as a percentage of period end loans 1.03% 1.08% 1.10% 1.10% 1.14%
Nonperforming assets:
Nonperforming loans
Commercial $ 788 $ 392 $ 309 $ 415 $ 866
Commercial real estate 1,340 1,844 936 1,537 2,834
Commercial construction and development -- -- -- 3,601 3,653
Residential construction and development 5,333 4,619 4,592 5,248 6,599
Residential real estate 4,491 5,556 5,257 3,289 2,890
Consumer 65 83 146 129 73
Total nonperforming loans 12,017 12,494 11,240 14,219 16,915
Foreclosed properties
Commercial 110 110 110 110 --
Commercial real estate 3,657 5,204 5,815 5,762 8,523
Commercial construction and development 10,191 10,179 10,178 10,363 11,097
Residential construction and development 17,590 19,267 20,431 20,557 20,640
Residential real estate 2,819 2,769 10,718 11,991 11,981
Total foreclosed properties 34,367 37,529 47,252 48,783 52,241
Other repossessed assets 55 221 34 -- 28
Total nonperforming assets $ 46,439 $ 50,244 $ 58,526 $ 63,002 $ 69,184
Nonperforming loans to period end loans 1.14% 1.21% 1.12% 1.42% 1.74%
Nonperforming assets to period end assets 3.18% 3.48% 4.10% 4.39% 4.92%
Loans Past Due 30-89 Days
For the Quarter Ended
In thousands 3/31/2015 12/31/2014 9/30/2014 6/30/2014 3/31/2014
Commercial $ 387 $ 382 $ 253 $ 376 $ 52
Commercial real estate 783 266 1,094 1,032 1,310
Construction and development 2,735 2,278 324 156 754
Residential real estate 3,614 7,413 5,087 5,775 3,847
Consumer 148 269 427 585 219
Other 18 14 18 -- --
Total $ 7,685 $ 10,622 $ 7,203 $ 7,924 $ 6,182
SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF)
Average Balance Sheet, Interest Earnings & Expenses and Average Rates
Q1 2015 vs Q1 2014
Q1 2015 Q1 2014
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 $ 1,035,610 $ 12,734 4.99% $ 957,482 $ 12,145 5.14%
Tax-exempt 12,567 174 5.62% 5,830 108 7.51%
Securities
Taxable 211,471 1,281 2.46% 216,900 1,281 2.40%
Tax-exempt 76,012 927 4.95% 75,437 864 4.64%
Interest bearing deposits other banks and Federal funds sold 7,081 1 0.06% 8,923 2 0.09%
Total interest earning assets 1,342,741 15,117 4.57% 1,264,572 14,400 4.62%
Noninterest earning assets
Cash & due from banks 3,679 3,897
Premises & equipment 20,203 20,582
Other assets 98,685 116,421
Allowance for loan losses (11,237) (12,969)
Total assets $ 1,454,071 $ 1,392,503
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Interest bearing liabilities
Interest bearing demand deposits $ 199,840 $ 58 0.12% $ 186,982 $ 52 0.11%
Savings deposits 254,398 428 0.68% 208,529 319 0.62%
Time deposits 485,975 1,585 1.32% 530,117 1,870 1.43%
Short-term borrowings 144,779 112 0.31% 75,177 52 0.28%
Long-term borrowings and subordinated debentures 105,741 1,040 3.99% 174,559 1,739 4.04%
Total interest bearing liabilities 1,190,733 3,223 1.10% 1,175,364 4,032 1.39%
Noninterest bearing liabilities
Demand deposits 115,198 95,138
Other liabilities 14,096 9,037
Total liabilities 1,320,027 1,279,539
Shareholders' equity - preferred 7,244 9,291
Shareholders' equity - common 126,800 103,673
Total liabilities and shareholders' equity $ 1,454,071 $ 1,392,503
NET INTEREST EARNINGS $ 11,894 $ 10,368
NET INTEREST MARGIN 3.59% 3.33%
SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF)
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures
For the Quarter Ended
Dollars in thousands 3/31/2015 12/31/2014 3/31/2014
Core earnings applicable to common shares $ 4,437 $ 3,789 $ 2,842
Realized securities gains (losses) 480 149 (22)
Applicable income tax effect (178) (55) 8
Gain (loss) on sale of foreclosed properties (150) (628) (75)
Applicable income tax effect 56 232 28
Fraud loss -- (461) --
Applicable income tax effect -- 171 --
Write-downs foreclosed properties (572) (300) (928)
Applicable income tax effect 212 111 343
(152) (781) (646)
GAAP net income applicable to common shares $ 4,285 $ 3,008 $ 2,196
Core diluted earnings per common share $ 0.42 $ 0.40 $ 0.32
Realized securities gains (losses) 0.05 0.01 --
Applicable income tax effect (0.02) -- --
Gain (loss) on sale of foreclosed properties (0.01) (0.06) (0.01)
Applicable income tax effect -- 0.02 --
Fraud loss -- (0.05) --
Applicable income tax effect -- 0.02 --
Write-downs of foreclosed properties (0.05) (0.03) (0.10)
Applicable income tax effect 0.02 0.01 0.04
(0.01) (0.08) (0.07)
GAAP diluted earnings per common share $ 0.41 $ 0.32 $ 0.25
SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF)
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures
For the Quarter Ended
Dollars in thousands 3/31/2015 12/31/2014 3/31/2014
Total core revenue $ 14,179 $ 13,624 $ 12,843
Realized securities gains (losses) 480 149 (22)
GAAP total revenue $ 14,659 $ 13,773 $ 12,821
Total core noninterest income $ 2,659 $ 2,673 $ 2,805
Realized securities gains (losses) 480 149 (22)
GAAP total noninterest income $ 3,139 $ 2,822 $ 2,783
Total core noninterest expense $ 7,482 $ 7,721 $ 7,495
Fraud loss -- 461 --
(Gains) losses on sales of foreclosed properties 150 628 75
Write-downs of foreclosed properties 572 300 928
722 1,389 1,003
GAAP total noninterest expense $ 8,204 $ 9,110 $ 8,498

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

Source:Summit Financial Group, Inc.