Summit Financial Group Reports First Quarter 2016 Results

MOOREFIELD, W.Va., April 25, 2016 (GLOBE NEWSWIRE) -- Summit Financial Group, Inc. (“Company” or “Summit”) (NASDAQ:SMMF) today reported first quarter 2016 net income of $4.06 million, or $0.38 per diluted share, representing a decrease of 5.2 percent, or 7.3 percent per diluted share, compared to the $4.29 million, or $0.41 per diluted share, reported for the first quarter of 2015, and a decrease of 2.0 percent, or 2.6 percent per diluted share, compared to the $4.15 million, or $0.39 per diluted share, reported for the fourth quarter of 2015. Q1 2016 earnings compared to Q1 2015 and Q4 2015 were negatively impacted by increased personnel costs and other noninterest expenses as well as reductions in insurance commission revenue, which were partially offset by increased net interest earnings and reductions in write-downs of foreclosed properties.

Excluding from first quarter 2016 one-time items of income, gain, expense and loss, Q1 2016 core earnings approximated $3.96 million, or $0.37 per diluted share compared to Q1 2015 core earnings of $4.33 million, or $0.40 per diluted share, and to Q4 2015 core earnings of $4.08 million, or $0.38 per diluted share.

Highlights for Q1 2016 include:

  • Net interest margin remained stable compared to the linked quarter, but has declined 9 basis points since Q1 2015.
  • Achieved loan growth of $17.3 million or 6.3 percent (on an annualized basis). Loans have grown $57.6 million or 5.5 percent since Q1 2015.
  • Core revenue for the quarter is unchanged compared to Q4 2015, and is up $189,000 or 1.3 percent compared to Q1 2015.
  • Nonperforming assets as a percentage of total assets declined to 2.66 percent compared to 2.77 percent for the linked quarter, and 3.18 percent at Q1 2015; foreclosed properties are at the lowest level since Q2 2009.
  • Recorded charges of $109,000 to write-down foreclosed properties compared to $636,000 in Q4 2015 and $572,000 in Q1 2015.
  • Announced our entering into a definitive merger agreement to acquire Highland County Bankshares, Inc. headquartered in Monterey, Virginia.

H. Charles Maddy III, President and Chief Executive Officer of Summit, commented, “I am pleased to report Summit achieved another quarter of solid performance, despite the challenges of higher overhead costs resulting from important investments we are making in both our people and in our infrastructure to assist to maintain our growth momentum. Our solid core earnings, growing loan portfolio and continued reductions in our portfolio of problem assets are all very gratifying to note; but I am particularly gratified by the opportunity represented by our pending acquisition of Highland County Bankshares. This deal will combine two financially strong banks with similar cultures, core values and guiding principles, as well as a shared commitment to build long-term client relationships by providing service beyond expectations.”

Results from Operations

Total revenue for first quarter 2016, consisting of net interest income and noninterest income, declined 0.5 percent to $14.6 million compared to $14.7 million for the first quarter 2015, and was unchanged compared to the linked quarter.

Total core revenue (excluding nonrecurring items, enumerated above) was $14.2 million for first quarter 2015, $14.0 million for the same prior-year quarter and $14.2 million for the linked quarter.

For the first quarter of 2016, net interest income was $11.8 million, an increase of 2.2 percent from the $11.5 million reported in the prior-year first quarter and increased $46,000 compared to the linked quarter. The net interest margin for first quarter 2016 was 3.50 percent compared to 3.59 percent for the year-ago quarter, and 3.51 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 2016 was $2.81 million compared to $3.14 million for the comparable period of 2015 and $2.87 million for Q4 2015. Excluding realized securities gains, noninterest income was $2.41 million for first quarter 2016 compared to $2.66 million reported for first quarter 2015 and $2.45 million for linked quarter. The quarter over year-ago quarter decline principally resulted from decreased insurance commission revenues, while the decline compared to the linked quarter was due to lower service fees on deposit accounts.

Summit recognized $250,000 provision for loan losses in first quarter 2016, as well as for the linked quarter and for the year-ago quarter.

Total noninterest expense increased 4.3% to $8.55 million compared to $8.20 million for the prior-year first quarter and increased 0.7 percent compared to $8.49 million for the linked quarter. Excluding from noninterest expense merger expenses, gains and losses on sales of foreclosed properties and write-downs of foreclosed properties, noninterest expense would have approximated $8.34 million for Q1 2016, $7.48 million for the comparable period of 2015 and $8.17 million for linked quarter. The Q1 2016 compared to Q1 2015 increase is primarily due to net additions of staff, general merit raises and higher incentive compensation.

Balance Sheet

At March 31, 2016, total assets were $1.51 billion, an increase of $16.1 million, or 1.1 percent since December 31, 2015. Total loans, net of unearned fees and allowance for loan losses, were $1.10 billion at March 31, 2016, up $17.5 million, or 1.6 percent, from the $1.08 billion reported at year-end 2015.

At March 31, 2016, deposits were $1.09 billion, an increase of $27.8 million, or 2.6 percent, since year end 2015. During Q1 2016, checking deposits declined by $1.5 million or 0.4 percent, while savings deposits increased $19.9 million, or 7.4 percent.

Asset Quality

As of March 31, 2016, nonperforming assets (“NPAs”), consisting of nonperforming loans, foreclosed properties, and repossessed assets, were $40.1 million, or 2.66 percent of assets. This compares to $41.3 million, or 2.77 percent of assets at the linked quarter, and $46.4 million, or 3.18 percent of assets, at first quarter 2015.

First quarter 2016 net loan charge-offs were $407,000, or 0.15 percent of average loans on an annualized basis. The allowance for loan losses stood at $11.3 million, or 1.02 percent of total loans at March 31, 2016, compared to 1.05 percent at year-end 2015.

Capital Adequacy

Shareholders’ equity was $146.1 million as of March 31, 2016 compared to $143.7 million December 31, 2015. Tangible book value per common share increased to $12.98 at March 31, 2016 compared to $12.78 at December 31, 2015. Summit had 10,681,880 outstanding common shares at Q1 2016 quarter end compared to 10,671,744 at year end 2015.

Summit's depository institution, Summit Community Bank, Inc. (the “Bank”), is well in excess of regulatory requirements for a "well capitalized" institution at March 31, 2016. The Bank’s total risk-based capital ratio was 14.5 percent at both March 31, 2016 and December 31, 2015, while its Tier 1 leverage capital ratio was 10.7 percent at March 31, 2016 compared to the 10.8 percent reported at December 31, 2015.

About the Company

Summit Financial Group, Inc. is a $1.51 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 2016 vs Q1 2015
For the Quarter Ended Percent
Dollars in thousands 3/31/20163/31/2015 Change
Condensed Statements of Income
Interest income
Loans, including fees$13,436 $12,848 4.6%
Securities 1,726 1,894 -8.9%
Other 3 1 200.0%
Total interest income 15,165 14,743 2.9%
Interest expense
Deposits 2,170 2,071 4.8%
Borrowings 1,216 1,152 5.6%
Total interest expense 3,386 3,223 5.1%
Net interest income 11,779 11,520 2.2%
Provision for loan losses 250 250 0.0%
Net interest income after provision
for loan losses 11,529 11,270 2.3%
Noninterest income
Insurance commissions 924 1,128 -18.1%
Service fees related to deposit accounts 978 976 0.2%
Realized securities gains (losses) 393 480 -18.1%
Other income 511 555 -7.9%
Total noninterest income 2,806 3,139 -10.6%
Noninterest expense
Salaries and employee benefits 4,682 4,187 11.8%
Net occupancy expense 540 498 8.4%
Equipment expense 656 535 22.6%
Professional fees 472 335 40.9%
FDIC premiums 300 330 -9.1%
Merger expense 112 - n/a
Foreclosed properties expense 124 208 -40.4%
Loss (gain) on sales of foreclosed properties (6) 150 n/a
Write-downs of foreclosed properties 109 572 -80.9%
Other expenses 1,565 1,389 12.7%
Total noninterest expense 8,554 8,204 4.3%
Income before income taxes 5,781 6,205 -6.8%
Income taxes 1,719 1,920 -10.5%
Net income$4,062 $4,285 -5.2%


SUMMIT FINANCIAL GROUP, INC. (NASDAQ:SMMF)
Quarterly Performance Summary -- Q1 2016 vs Q1 2015
For the Quarter Ended Percent
3/31/20163/31/2015 Change
Per Share Data
Earnings per common share
Basic$0.38 $0.49 -22.4%
Diluted$0.38 $0.41 -7.3%
Cash dividends$0.10 $0.08 25.0%
Average common shares outstanding
Basic 10,671,856 8,815,961 21.1%
Diluted 10,679,301 10,493,323 1.8%
Common shares outstanding at period end 10,681,880 10,586,242 0.9%
Performance Ratios
Return on average equity 11.10% 12.79% -13.2%
Return on average tangible equity 11.70% 13.56% -13.7%
Return on average assets 1.08% 1.18% -8.5%
Net interest margin 3.50% 3.59% -2.5%
Efficiency ratio (A) 55.93% 49.27% 13.5%
NOTE (A) – 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 3/31/201612/31/20159/30/20156/30/20153/31/2015
Condensed Statements of Income
Interest income
Loans, including fees$13,436 $13,265 $12,983 $12,972 $12,848
Securities 1,726 1,685 1,543 1,685 1,894
Other 3 1 5 1 1
Total interest income 15,165 14,951 14,531 14,658 14,743
Interest expense
Deposits 2,170 2,085 2,106 2,074 2,071
Borrowings 1,216 1,133 1,120 1,126 1,152
Total interest expense 3,386 3,218 3,226 3,200 3,223
Net interest income 11,779 11,733 11,305 11,458 11,520
Provision for loan losses 250 250 250 500 250
Net interest income after provision
for loan losses 11,529 11,483 11,055 10,958 11,270
Noninterest income
Insurance commissions 924 851 983 1,080 1,128
Service fees related to deposit accounts 978 1,126 1,111 1,072 976
Realized securities gains (losses) 393 421 372 170 480
Other income 511 471 527 538 555
Total noninterest income 2,806 2,869 2,993 2,860 3,139
Noninterest expense
Salaries and employee benefits 4,682 4,530 4,479 4,442 4,187
Net occupancy expense 540 481 496 489 498
Equipment expense 656 617 582 560 535
Professional fees 472 507 402 372 335
FDIC premiums 300 270 300 320 330
Merger expense 112 - - - -
Foreclosed properties expense 124 150 168 158 208
Loss (gain) on sale of foreclosed properties (6) (314) 35 103 150
Write-downs of foreclosed properties 109 636 1,046 160 572
Other expenses 1,565 1,617 1,364 1,457 1,389
Total noninterest expense 8,554 8,494 8,872 8,061 8,204
Income before income taxes 5,781 5,858 5,176 5,757 6,205
Income taxes 1,719 1,712 1,515 1,747 1,920
Net income$4,062 $4,146 $3,661 $4,010 $4,285


SUMMIT FINANCIAL GROUP, INC. (NASDAQ:SMMF)
Five Quarter Performance Summary
For the Quarter Ended
3/31/1612/31/20159/30/20156/30/20153/31/2015
Per Share Data
Earnings per common share
Basic$0.38 $0.39 $0.34 $0.38 $0.49
Diluted$0.38 $0.39 $0.34 $0.38 $0.41
Cash dividends$0.10 $0.08 $0.08 $0.08 $0.08
Average common shares outstanding
Basic 10,671,856 10,661,700 10,703,526 10,667,892 8,815,961
Diluted 10,679,301 10,669,192 10,712,203 10,676,474 10,493,323
Common shares outstanding at period end 10,681,880 10,671,744 10,658,199 10,843,676 10,586,242
Performance Ratios
Return on average equity 11.10% 11.66% 10.42% 11.67% 12.79%
Return on average tangible equity 11.70% 12.31% 11.01% 12.36% 13.56%
Return on average assets 1.08% 1.12% 1.00% 1.09% 1.18%
Net interest margin 3.50% 3.51% 3.41% 3.49% 3.59%
Efficiency ratio (A) 55.93% 54.46% 52.93% 52.05% 49.27%
NOTE (A) – 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 3/31/201612/31/20159/30/20156/30/20153/31/2015
Assets
Cash and due from banks$4,005 $3,625 $4,232 $3,988 $3,850
Interest bearing deposits other banks 12,655 5,862 8,057 9,274 8,437
Securities 271,515 280,792 272,127 276,661 282,135
Loans, net 1,096,790 1,079,331 1,062,348 1,064,472 1,039,669
Property held for sale 24,684 25,567 29,713 31,500 34,368
Premises and equipment, net 21,589 21,572 20,457 20,490 20,208
Intangible assets 7,448 7,498 7,548 7,598 7,648
Cash surrender value of life insurance policies 37,989 37,732 37,482 37,222 36,961
Other assets 31,893 30,450 27,340 28,764 27,216
Total assets$1,508,568 $1,492,429 $1,469,304 $1,479,969 $1,460,492
Liabilities and Shareholders' Equity
Deposits$1,094,544 $1,066,709 $1,072,091 $1,053,310 $1,058,308
Short-term borrowings 153,448 171,394 145,291 174,599 148,985
Long-term borrowings and
subordinated debentures 94,692 95,170 95,648 98,625 101,602
Other liabilities 19,755 15,412 15,985 13,363 15,708
Shareholders' equity 146,129 143,744 140,289 140,072 135,889
Total liabilities and shareholders' equity$1,508,568 $1,492,429 $1,469,304 $1,479,969 $1,460,492
Book value per common share (A)$13.68 $13.48 $13.16 $12.92 $12.84
Tangible book value per common share (A)$12.98 $12.78 $12.45 $12.22 $12.11
Tangible equity to tangible assets 9.2% 9.2% 9.1% 9.0% 8.8%
Tangible common equity to tangible assets 9.2% 9.2% 9.1% 9.0% 8.8%
NOTE (A) – Computed on a fully-diluted basis assuming conversion of convertible preferred stock


SUMMIT FINANCIAL GROUP INC. (NASDAQ:SMMF)
Regulatory Capital Ratios (A)
3/31/201612/31/20159/30/20156/30/20153/31/2015
Summit Financial Group, Inc.
CET1 Risk-based Capital 11.9% 11.8% 11.7% 11.6% 11.3%
Tier 1 Risk-based Capital 13.5% 13.4% 13.4% 13.2% 13.0%
Total Risk-based Capital 14.5% 14.4% 14.4% 14.2% 14.0%
Tier 1 Leverage Ratio 10.7% 10.7% 10.5% 10.4% 10.1%
Summit Community Bank, Inc.
CET1 Risk-based Capital 13.6% 13.6% 13.6% 13.4% 13.5%
Tier 1 Risk-based Capital 13.6% 13.6% 13.6% 13.4% 13.5%
Total Risk-based Capital 14.5% 14.5% 14.6% 14.4% 14.5%
Tier 1 Leverage Ratio 10.7% 10.8% 10.7% 10.6% 10.5%
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 thousands3/31/201612/31/20159/30/20156/30/20153/31/2015
Commercial $101,743 $97,201 $89,250 $97,284 $89,928
Commercial real estate
Owner occupied 202,680 203,555 199,068 191,743 180,269
Non-owner occupied 353,350 337,295 336,550 331,056 325,764
Construction and development
Land and development 66,483 65,500 66,164 64,435 66,558
Construction 7,997 9,970 8,419 18,214 19,094
Residential real estate
Non-jumbo 221,368 221,749 222,739 220,199 219,938
Jumbo 50,057 50,313 46,092 49,203 50,492
Home equity 74,097 74,300 73,652 72,504 68,894
Consumer 19,095 19,251 19,124 18,683 18,485
Other 11,235 11,669 12,518 12,423 11,074
Total loans, net of unearned fees 1,108,105 1,090,803 1,073,576 1,075,744 1,050,496
Less allowance for loan losses 11,315 11,472 11,228 11,272 10,827
Loans, net$1,096,790 $1,079,331 $1,062,348 $1,064,472 $1,039,669


SUMMIT FINANCIAL GROUP INC. (NASDAQ:SMMF)
Deposit Composition
Dollars in thousands 3/31/201612/31/20159/30/20156/30/20153/31/2015
Non interest bearing checking$122,378 $119,010 $118,887 $113,256 $117,049
Interest bearing checking 210,878 215,721 217,242 202,957 196,606
Savings 286,695 266,825 259,185 246,949 257,687
Time deposits 474,593 465,153 476,777 490,148 486,966
Total deposits$1,094,544 $1,066,709 $1,072,091 $1,053,310 $1,058,308


SUMMIT FINANCIAL GROUP, INC. (NASDAQ:SMMF)
Asset Quality Information
For the Quarter Ended
Dollars in thousands 3/31/201612/31/20159/30/20156/30/20153/31/2015
Gross loan charge-offs$561 $132 $774 $463 $782
Gross loan recoveries (154) (126) (481) (407) (192)
Net loan charge-offs$407 $6 $293 $56 $590
Net loan charge-offs to average loans (annualized) 0.15% 0.00% 0.11% 0.02% 0.23%
Allowance for loan losses$11,315 $11,472 $11,228 $11,272 $10,827
Allowance for loan losses as a percentage
of period end loans 1.02% 1.05% 1.05% 1.05% 1.03%
Nonperforming assets:
Nonperforming loans
Commercial$430 $853 $884 $1,065 $788
Commercial real estate 6,140 5,955 5,294 2,421 1,340
Commercial construction and development - - - - -
Residential construction and development 5,467 5,623 5,345 5,627 5,333
Residential real estate 3,248 3,245 3,881 4,433 4,491
Consumer 121 92 53 45 65
Total nonperforming loans 15,406 15,768 15,457 13,591 12,017
Foreclosed properties
Commercial - - - - 110
Commercial real estate 976 1,300 3,209 3,279 3,657
Commercial construction and development 8,717 8,717 9,328 10,178 10,191
Residential construction and development 13,808 14,068 14,965 15,839 17,590
Residential real estate 1,183 1,482 2,211 2,204 2,819
Total foreclosed properties 24,684 25,567 29,713 31,500 34,367
Other repossessed assets - 5 - 55 55
Total nonperforming assets$40,090 $41,340 $45,170 $45,146 $46,439
Nonperforming loans to period end loans 1.39% 1.45% 1.44% 1.26% 1.14%
Nonperforming assets to period end assets 2.66% 2.77% 3.07% 3.05% 3.18%


Loans Past Due 30-89 Days
For the Quarter Ended
In thousands 3/31/201612/31/20159/30/20156/30/20153/31/2015
Commercial$465 $339 $42 $344 $387
Commercial real estate 920 543 1,926 4,945 783
Construction and development 218 1,182 39 21 2,735
Residential real estate 3,055 4,442 3,888 3,932 3,614
Consumer 73 186 216 211 148
Other 14 9 9 7 18
Total$4,745 $6,701 $6,120 $9,460 $7,685


SUMMIT FINANCIAL GROUP, INC. (NASDAQ:SMMF)
Average Balance Sheet, Interest Earnings & Expenses and Average Rates
Q1 2016 vs Q1 2015
Q1 2016 Q1 2015
AverageEarnings /Yield / AverageEarnings /Yield /
Dollars in thousandsBalancesExpenseRate BalancesExpenseRate
ASSETS
Interest earning assets
Loans, net of unearned interest
Taxable$1,089,083 $13,291 4.91% $1,035,610 $12,734 4.99%
Tax-exempt 15,824 220 5.59% 12,567 174 5.62%
Securities
Taxable 209,365 1,083 2.08% 211,471 1,281 2.46%
Tax-exempt 79,314 974 4.94% 76,012 927 4.95%
Interest bearing deposits other banks
and Federal funds sold 8,092 3 0.15% 7,081 1 0.06%
Total interest earning assets 1,401,678 15,571 4.47% 1,342,741 15,117 4.57%
Noninterest earning assets
Cash & due from banks 3,762 3,679
Premises & equipment 21,594 20,203
Other assets 89,642 98,685
Allowance for loan losses (11,562) (11,237)
Total assets$1,505,114 $1,454,071
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Interest bearing liabilities
Interest bearing
demand deposits$209,733 $83 0.16% $199,840 $58 0.12%
Savings deposits 277,396 506 0.73% 254,398 428 0.68%
Time deposits 471,597 1,581 1.35% 485,975 1,585 1.32%
Short-term borrowings 168,548 240 0.57% 144,779 112 0.31%
Long-term borrowings and
subordinated debentures 95,052 976 4.13% 105,741 1,040 3.99%
Total interest bearing liabilities 1,222,326 3,386 1.11% 1,190,733 3,223 1.10%
Noninterest bearing liabilities
Demand deposits 120,464 115,198
Other liabilities 15,928 14,096
Total liabilities 1,358,718 1,320,027
Shareholders' equity - preferred - 7,244
Shareholders' equity - common 146,396 126,800
Total liabilities and
shareholders' equity$1,505,114 $1,454,071
NET INTEREST EARNINGS $12,185 $11,894
NET INTEREST MARGIN 3.50% 3.59%


SUMMIT FINANCIAL GROUP, INC. (NASDAQ:SMMF)
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures
For the Quarter Ended
Dollars in thousands 3/31/201612/31/20153/31/2015
Core earnings applicable to common shares$3,950 $4,084 $4,326
FHLB special dividend - - 176
Applicable income tax effect - - (65)
Realized securities gains (losses) 393 421 480
Applicable income tax effect (145) (156) (178)
Merger expense (112) - -
Applicable income tax effect 41 - -
Gain (loss) on sale of foreclosed properties 6 314 (150)
Applicable income tax effect (2) (116) 56
Write-downs foreclosed properties (109) (636) (572)
Applicable income tax effect 40 235 212
112 62 (41)
GAAP net income applicable to common shares$4,062 $4,146 $4,285
Core diluted earnings per common share$0.37 $0.38 $0.40
FHLB special dividend - - 0.02
Applicable income tax effect - - -
Realized securities gains (losses) 0.04 0.04 0.05
Applicable income tax effect (0.01) (0.01) (0.02)
Merger expense (0.01) - -
Applicable income tax effect - - -
Gain (loss) on sale of foreclosed properties - 0.03 (0.01)
Applicable income tax effect - (0.01) -
Write-downs of foreclosed properties (0.01) (0.06) (0.05)
Applicable income tax effect - 0.02 0.02
0.01 0.01 0.01
GAAP diluted earnings per common share$0.38 $0.39 $0.41


SUMMIT FINANCIAL GROUP, INC. (NASDAQ:SMMF)
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures
For the Quarter Ended
Dollars in thousands 3/31/201612/31/20153/31/2015
Total core revenue$14,192 $14,181 $14,003
FHLB special dividend - - 176
Realized securities gains (losses) 393 421 480
GAAP total revenue$ 14,585 $ 14,602 $ 14,659
Total core noninterest income$2,413 $2,448 $2,659
Realized securities gains (losses) 393 421 480
GAAP total noninterest income$ 2,806 $ 2,869 $ 3,139
Total core noninterest expense$8,339 $8,172 $7,482
Merger expense 112 - -
(Gains) losses on sales of foreclosed properties (6) (314) 150
Write-downs of foreclosed properties 109 636 572
215 322 722
GAAP total noninterest expense$ 8,554 $ 8,494 $ 8,204


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

Source:Summit Financial Group, Inc.