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Summit Financial Group Reports First Quarter 2013 Results

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MOOREFIELD, W.Va., April 25, 2013 (GLOBE NEWSWIRE) -- Summit Financial Group, Inc. ("Company" or "Summit") (Nasdaq:SMMF) today reported first quarter 2013 net income applicable to common shares of $1.60 million, or $0.19 per diluted share, compared to $1.50 million, or $0.18 per diluted share, for the first quarter of 2012. Q1 2013 earnings compared to Q1 2012 were positively impacted by a $1.5 million decrease in combined provision for loan losses and write downs of foreclosed properties, which was partially negated by $1.1 million reduction in realized securities gains.

Excluding from first quarter 2013 nonrecurring items (on a pre-tax basis) consisting of realized securities gains of $42,000, losses on sales of assets of $40,000, charges for other-than-temporary impairment ("OTTI") of securities of $54,000 and write-downs of foreclosed properties of $929,000, pro forma first quarter 2013 earnings were approximately $2.21 million, or $0.26 per diluted share. Excluding from first quarter 2012 nonrecurring realized securities gains of $1.2 million, losses on sales of assets of $77,000, OTTI of securities of $229,000, and write-downs of foreclosed properties of $1.9 million, pro forma earnings of $2.17 million would have resulted, or $0.25 per diluted share.

Highlights for Q1 2013 include:

  • Achieved eighth consecutive quarter of positive quarterly earnings.
  • Nonperforming assets declined for the fifth consecutive quarter, reaching its lowest level since Q1 2011.
  • Net interest margin increased 4 basis points quarter over quarter and 3 basis points compared to Q1 2012.
  • Achieved $7.7 million growth in gross loans.
  • Recorded charges of $929,000 and $54,000, respectively, to write-down foreclosed properties and to recognize OTTI of securities, compared to $1.91 million and $229,000, respectively, in Q1 2012.
  • Noninterest expenses remained well-controlled, increasing less than 1% compared to Q1 2012.
  • Summit's leverage capital ratio is at its highest level in seven years and its total risk-based capital ratio is at highest level in thirteen years.

H. Charles Maddy III, President and Chief Executive Officer of Summit, commented, "Our continued progress towards: achieving improved earnings performance, reducing our portfolio of problem assets, and strengthening our capital levels proceeds as planned. Reducing our portfolio of problem assets remains top priority, and we are very pleased to have reduced nonperforming assets in each of the five most recent quarters. While our disposal of foreclosed properties is still not at the pace we would like, we are encouraged to observe improvement in local real estate market conditions during the quarter just ended. 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 2013, consisting of net interest income and noninterest income, was $11.5 million compared to $11.7 million for the first quarter 2012. Total revenue excluding nonrecurring items (as enumerated above) was $12.5 million for first quarter 2013 compared to $12.8 million in the prior-year quarter.

For the first quarter of 2013, net interest income was $9.8 million, a decrease of 2.6 percent from the $10.0 million reported in the prior-year first quarter and decreased $138,000 compared to the linked quarter, reflecting reduced volumes of interest earning assets. The net interest margin for first quarter 2013 was 3.23 percent compared to 3.20 percent for the year-ago quarter, and 3.19 percent for the linked quarter, principally as result of maturing wholesale funds reissued at substantially lower rates which more than offset reductions in the yields on loans and securities.

Noninterest income, consisting primarily of insurance commissions from Summit's insurance agency subsidiary and service fee income from community banking activities, for first quarter 2013 was $1.78 million compared to $1.70 million for the comparable period of 2012. Excluding nonrecurring items (as enumerated above), noninterest income was $2.76 million for first quarter 2013, compared to $2.76 million reported for first quarter 2012.

The provision for loan losses was $1.5 million for the first quarter of 2013 compared to $2.5 million for the linked quarter and $2.0 million for the year-ago quarter.

Noninterest expense continues to be well-controlled. Total noninterest expense increased 0.7% to $7.59 million compared to $7.54 million for the prior-year first quarter. Our cost-saving initiatives continue and their impact remains beneficial.

Balance Sheet

At March 31, 2013, total assets were $1.39 billion, an increase of $3.1 million, or 0.2 percent since December 31, 2012. Total loans, net of unearned fees and allowance for loan losses, were $945.7 million at March 31, 2013, up $8.6 million, or 0.9 percent, from the $937.2 million reported at year-end 2012.

Commercial loans increased $1.0 million or 1.2 percent and commercial real estate ("CRE") increased $10.1 million, or 2.3 percent. All other loan categories declined since year-end 2012. Residential real estate declined $965,000, or 0.3 percent, while construction and development ("C&D") loans declined $1.0 million, or 1.3 percent.

At March 31, 2013, deposits were $1.07 billion, an increase of $39.2 million, or 3.8 percent, since year end 2012. During first quarter 2013, savings and time deposits grew by $4.5 million and $36.5 million, respectively, or 2.4 percent and 6.5 percent, respectively. Long-term borrowings and subordinated debentures declined by 16.6 percent since year end 2012, as the Company paid down $39.7 million in maturing borrowings, which was funded by issuance of long-term time deposits.

Asset Quality

As of March 31, 2013, nonperforming assets ("NPAs"), consisting of nonperforming loans, foreclosed properties, and repossessed assets, were $90.9 million, or 6.54 percent of assets. This compares to $94.0 million, or 6.77 percent of assets at the linked quarter, and $108.6 million, or 7.52 percent of assets, at first quarter 2012.

First quarter 2013 net loan charge-offs were $2.4 million, or 0.99 percent of average loans annualized; while adding $1.5 million to its allowance for loan losses. The allowance for loan losses stood at $17.0 million, or 1.77 percent of total loans at March 31, 2013, compared to 1.88 percent at year-end 2012.

Capital Adequacy

Shareholders' equity was $110.0 million as of March 31, 2013 compared to $108.6 million December 31, 2012.

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, 2013. The Bank's total risk-based capital ratio improved to 15.2 percent at March 31, 2013 compared to 15.0 percent at December 31, 2012, while its Tier 1 leverage capital ratio improved to 10.0 from the 9.8 percent reported at December 31, 2012. Total common shares outstanding as of March 31, 2013 were 7,437,472.

About the Company

Summit Financial Group, Inc. is a $1.39 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 2013 vs Q1 2012
For the Quarter Ended Percent
Dollars in thousands 3/31/2013 3/31/2012 Change
Condensed Statements of Income
Interest income
Loans, including fees $ 12,904 $ 14,365 -10.2%
Securities 1,664 2,421 -31.3%
Other 1 11 -90.9%
Total interest income 14,569 16,797 -13.3%
Interest expense
Deposits 2,768 3,713 -25.5%
Borrowings 2,043 3,066 -33.4%
Total interest expense 4,811 6,779 -29.0%
Net interest income 9,758 10,018 -2.6%
Provision for loan losses 1,500 2,001 -25.0%
Net interest income after provision for loan losses 8,258 8,017 3.0%
Noninterest income
Insurance commissions 1,184 1,158 2.2%
Service fees related to deposit accounts 1,012 1,014 -0.2%
Realized securities gains 42 1,165 -96.4%
Gain (loss) on sale of assets (40) (77) -48.1%
Other-than-temporary impairment of securities (54) (229) -76.4%
Write-downs of foreclosed properties (929) (1,912) -51.4%
Other income 564 584 -3.4%
Total noninterest income 1,779 1,703 4.5%
Noninterest expense
Salaries and employee benefits 4,117 3,901 5.5%
Net occupancy expense 457 479 -4.6%
Equipment expense 598 594 0.7%
Professional fees 251 304 -17.4%
FDIC premiums 540 522 3.4%
Foreclosed properties expense 279 374 -25.4%
Other expenses 1,351 1,365 -1.0%
Total noninterest expense 7,593 7,539 0.7%
Income before income taxes 2,444 2,181 12.1%
Income taxes 651 483 34.8%
Net income 1,793 1,698 5.6%
Preferred stock dividends 194 194 0.0%
Net income applicable to common shares $ 1,599 $ 1,504 6.3%
SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF)
Quarterly Performance Summary --- Q1 2013 vs Q1 2012
For the Quarter Ended Percent
3/31/2013 3/31/2012 Change
Per Share Data
Earnings per common share
Basic $ 0.22 $ 0.20 10.0%
Diluted $ 0.19 $ 0.18 5.6%
Average shares outstanding
Basic 7,432,254 7,425,472 0.1%
Diluted 9,613,886 9,600,017 0.1%
Performance Ratios
Return on average equity (A) 6.55% 6.49% 0.9%
Return on average assets 0.52% 0.47% 10.6%
Net interest margin 3.23% 3.20% 0.9%
Efficiency ratio (B) 56.00% 53.71% 4.3%

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 3/31/2013 12/31/2012 9/30/2012 6/30/2012 3/31/2012
Condensed Statements of Income
Interest income
Loans, including fees $ 12,904 $ 13,512 $ 13,648 $ 14,041 $ 14,365
Securities 1,664 1,703 1,934 2,225 2,421
Other 1 5 7 12 11
Total interest income 14,569 15,220 15,589 16,278 16,797
Interest expense
Deposits 2,768 3,017 3,067 3,360 3,713
Borrowings 2,043 2,307 2,587 2,947 3,066
Total interest expense 4,811 5,324 5,654 6,307 6,779
Net interest income 9,758 9,896 9,935 9,971 10,018
Provision for loan losses 1,500 2,498 2,000 2,001 2,001
Net interest income after provision for loan losses 8,258 7,398 7,935 7,970 8,017
Noninterest income
Insurance commissions 1,184 1,082 1,052 1,141 1,158
Service fees related to deposit accounts 1,012 1,092 1,074 1,075 1,014
Gain (loss) on sale of assets 42 (94) 16 (523) (77)
Realized securities gains (losses) (40) 103 760 320 1,165
Other-than-temporary impairment of securities (54) (76) (39) (106) (229)
Write-downs of foreclosed properties (929) (748) (2,571) (1,631) (1,912)
Other income 564 644 514 552 584
Total noninterest income 1,779 2,003 806 828 1,703
Noninterest expense
Salaries and employee benefits 4,117 3,799 3,940 3,892 3,901
Net occupancy expense 457 495 476 490 479
Equipment expense 598 576 576 603 594
Professional fees 251 314 289 242 316
FDIC premiums 540 535 510 500 522
Foreclosed properties expense 279 269 356 233 362
Other expenses 1,351 1,434 1,325 1,335 1,365
Total noninterest expense 7,593 7,422 7,472 7,295 7,539
Income before income taxes 2,444 1,979 1,269 1,503 2,181
Income taxes 651 (126) 272 590 483
Net income 1,793 2,105 997 913 1,698
Preferred stock dividends 194 194 194 194 194
Net income applicable to common shares $ 1,599 $ 1,911 $ 803 $ 719 $ 1,504
SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF)
Five Quarter Performance Summary
For the Quarter Ended
3/31/2013 12/31/2012 9/30/2012 6/30/2012 3/31/2012
Per Share Data
Earnings per common share
Basic $ 0.22 $ 0.26 $ 0.11 $ 0.10 $ 0.20
Diluted $ 0.19 $ 0.22 $ 0.10 $ 0.09 $ 0.18
Average shares outstanding
Basic 7,432,254 7,425,472 7,425,472 7,425,472 7,425,472
Diluted 9,613,886 9,601,435 9,601,278 8,927,802 9,600,017
Performance Ratios
Return on average equity (A) 6.55% 7.76% 3.71% 3.44% 6.49%
Return on average assets 0.52% 0.60% 0.28% 0.25% 0.47%
Net interest margin 3.23% 3.19% 3.17% 3.20% 3.20%
Efficiency ratio (B) 56.00% 54.00% 54.37% 53.13% 53.71%

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 3/31/2013 12/31/2012 9/30/2012 6/30/2012 3/31/2012
Assets
Cash and due from banks $ 3,906 $ 3,833 $ 3,752 $ 4,266 $ 4,059
Interest bearing deposits other banks 7,915 10,969 13,441 14,288 26,855
Securities 283,054 281,539 291,992 289,151 292,002
Loans, net 945,741 937,168 940,933 948,294 957,797
Property held for sale 54,625 56,172 56,033 60,069 61,584
Premises and equipment, net 21,023 21,129 21,265 21,470 21,756
Intangible assets 8,212 8,300 8,387 8,475 8,563
Cash surrender value of life insurance policies 29,791 29,553 30,065 29,808 29,559
Other assets 35,931 38,441 38,218 40,620 42,190
Total assets $ 1,390,198 $ 1,387,104 $ 1,404,086 $ 1,416,441 $ 1,444,365
Liabilities and Shareholders' Equity
Deposits $ 1,066,318 $ 1,027,125 $ 1,027,307 $ 1,001,669 $ 1,011,139
Short-term borrowings 5,960 3,958 20,957 10,957 15,956
Long-term borrowings and subordinated debentures 199,977 239,657 240,133 290,024 303,510
Other liabilities 7,928 7,809 8,361 8,084 9,361
Shareholders' equity 110,015 108,555 107,328 105,707 104,399
Total liabilities and shareholders' equity $ 1,390,198 $ 1,387,104 $ 1,404,086 $ 1,416,441 $ 1,444,365
Book value per common share (A) $ 11.45 $ 11.31 $ 11.20 $ 11.01 $ 10.87
Tangible book value per common share (A) $ 10.60 $ 10.44 $ 10.33 $ 10.13 $ 9.98
Tangible equity / Tangible assets 7.4% 7.3% 7.1% 6.9% 6.7%

NOTE (A) – Assumes conversion of convertible preferred stock

SUMMIT FINANCIAL GROUP INC. (NASDAQ: SMMF)
Regulatory Capital Ratios
3/31/2013 12/31/2012 9/30/2012 6/30/2012 3/31/2012
Summit Financial Group, Inc.
Total Risk Based Capital 14.1% 14.0% 13.8% 13.6% 13.3%
Tier 1 Risk Based Capital 11.8% 11.6% 11.3% 11.1% 10.8%
Tier 1 Leverage Ratio 8.4% 8.3% 8.0% 7.9% 7.8%
Summit Community Bank, Inc.
Total Risk Based Capital 15.2% 15.0% 14.6% 14.3% 14.0%
Tier 1 Risk Based Capital 13.9% 13.7% 13.3% 13.1% 12.7%
Tier 1 Leverage Ratio 10.0% 9.8% 9.5% 9.3% 9.1%
SUMMIT FINANCIAL GROUP INC. (NASDAQ: SMMF)
Loan Composition
Dollars in thousands 3/31/2013 12/31/2012 9/30/2012 6/30/2012 3/31/2012
Commercial $ 86,877 $ 85,829 $ 88,997 $ 92,060 $ 99,386
Commercial real estate
Owner occupied 151,942 154,252 150,090 152,347 153,528
Non-owner occupied 288,475 276,082 279,132 280,891 275,727
Construction and development
Land and development 76,277 79,335 82,857 84,383 88,212
Construction 5,782 3,772 2,087 1,793 2,148
Residential real estate
Non-jumbo 213,965 216,714 215,584 217,321 219,485
Jumbo 62,849 61,567 62,748 61,962 62,836
Home equity 53,765 53,263 53,455 51,692 50,884
Consumer 19,638 20,586 21,290 21,212 21,573
Other 3,191 3,701 2,513 2,523 2,540
Total loans, net of unearned fees 962,761 955,101 958,753 966,184 976,319
Less allowance for loan losses 17,020 17,933 17,820 17,890 18,522
Loans, net $ 945,741 $ 937,168 $ 940,933 $ 948,294 $ 957,797
SUMMIT FINANCIAL GROUP INC. (NASDAQ: SMMF)
Deposit Composition
Dollars in thousands 3/31/2013 12/31/2012 9/30/2012 6/30/2012 3/31/2012
Non interest bearing checking $ 93,125 $ 100,592 $ 96,764 $ 96,172 $ 87,916
Interest bearing checking 181,327 175,706 177,236 164,867 172,506
Savings 197,587 193,039 197,610 204,509 212,402
Time deposits 594,279 557,788 555,697 536,121 538,315
Total deposits $ 1,066,318 $ 1,027,125 $ 1,027,307 $ 1,001,669 $ 1,011,139
SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF)
Asset Quality Information
For the Quarter Ended
Dollars in thousands 3/31/2013 12/31/2012 9/30/2012 6/30/2012 3/31/2012
Gross loan charge-offs $ 2,497 $ 2,545 $ 2,142 $ 2,790 $ 1,340
Gross loan recoveries (84) (160) (73) (156) (149)
Net loan charge-offs $ 2,413 $ 2,385 $ 2,069 $ 2,634 $ 1,191
Net loan charge-offs to average loans (annualized) 1.00% 0.99% 0.86% 1.08% 0.49%
Allowance for loan losses $ 17,020 $ 17,933 $ 17,820 $ 17,890 $ 18,523
Allowance for loan losses as a percentage of period end loans 1.77% 1.88% 1.86% 1.85% 1.89%
Nonperforming assets:
Nonperforming loans
Commercial $ 4,763 $ 5,002 $ 5,343 $ 6,476 $ 2,477
Commercial real estate 1,525 2,556 2,803 3,536 4,282
Commercial construction and development -- -- 428 662 799
Residential construction and development 13,076 13,641 16,333 16,735 21,375
Residential real estate 16,869 16,522 18,809 18,550 17,754
Consumer 72 55 88 78 81
Total nonperforming loans 36,305 37,776 43,804 46,037 46,768
Foreclosed properties
Commercial -- -- -- -- --
Commercial real estate 11,779 11,835 11,802 12,029 14,703
Commercial construction and development 16,670 17,597 17,683 18,632 17,377
Residential construction and development 21,929 23,074 23,769 26,014 25,724
Residential real estate 4,247 3,666 2,779 3,393 3,780
Total foreclosed properties 54,625 56,172 56,033 60,068 61,584
Other repossessed assets 19 6 -- -- 266
Total nonperforming assets $ 90,949 $ 93,954 $ 99,837 $ 106,105 $ 108,618
Nonperforming loans to period end loans 3.77% 3.96% 4.57% 4.76% 4.79%
Nonperforming assets to period end assets 6.54% 6.77% 7.11% 7.49% 7.52%
Loans Past Due 30-89 Days
For the Quarter Ended
In thousands 3/31/2013 12/31/2012 9/30/2012 6/30/2012 3/31/2012
Commercial $ 27 $ 180 $ 874 $ 300 $ 689
Commercial real estate 2,161 437 1,264 1,787 2,776
Construction and development 64 -- 56 293 518
Residential real estate 4,522 6,170 4,346 5,763 5,509
Consumer 277 326 313 408 242
Total $ 7,051 $ 7,113 $ 6,853 $ 8,551 $ 9,734
SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF)
Average Balance Sheet, Interest Earnings & Expenses and Average Rates
Q1 2013 vs Q1 2012
Q1 2013 Q1 2012
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 $ 960,509 $ 12,833 5.42% $ 973,862 $ 14,279 5.90%
Tax-exempt 5,965 106 7.21% 7,248 130 7.21%
Securities
Taxable 216,306 1,030 1.93% 234,973 1,699 2.91%
Tax-exempt 79,147 961 4.92% 71,559 1,092 6.14%
Interest bearing deposits other banks and Federal funds sold 7,510 1 0.05% 24,882 11 0.18%
Total interest earning assets 1,269,437 14,931 4.77% 1,312,524 17,211 5.27%
Noninterest earning assets
Cash & due from banks 4,240 4,073
Premises & equipment 21,101 21,978
Other assets 114,701 122,188
Allowance for loan losses (17,572) (18,251)
Total assets $ 1,391,907 $ 1,442,512
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Interest bearing liabilities
Interest bearing demand deposits $ 174,724 $ 70 0.16% $ 160,147 $ 82 0.21%
Savings deposits 195,556 309 0.64% 211,783 381 0.72%
Time deposits 574,545 2,388 1.69% 550,689 3,250 2.37%
Short-term borrowings 27,834 17 0.25% 14,390 7 0.20%
Long-term borrowings and subordinated debentures 209,255 2,027 3.93% 305,027 3,059 4.03%
Total interest bearing liabilities 1,181,914 4,811 1.65% 1,242,036 6,779 2.20%
Noninterest bearing liabilities
Demand deposits 92,926 87,000
Other liabilities 7,653 8,850
Total liabilities 1,282,493 1,337,886
Shareholders' equity - preferred 9,325 9,326
Shareholders' equity - common 100,089 95,300
Total liabilities and shareholders' equity $ 1,391,907 $ 1,442,512
NET INTEREST EARNINGS $ 10,120 $ 10,432
NET INTEREST MARGIN 3.23% 3.20%
SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF)
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures
For the Quarter Ended
Dollars in thousands 3/31/2013 3/31/2012 12/31/2012
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 $ 2,217 $ 2,167 $ 2,424
Realized securities gains 42 1,165 103
Applicable income tax effect (16) (431) (38)
Gain (loss) on sale of assets (40) (77) (94)
Applicable income tax effect 15 28 35
Other-than-temporary impairment of securities (54) (229) (76)
Applicable income tax effect 20 85 28
Write-downs foreclosed properties (929) (1,912) (748)
Applicable income tax effect 344 707 277
(618) (663) (513)
GAAP net income applicable to common shares $ 1,599 $ 1,504 $ 1,911
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 $ 0.26 $ 0.25 $ 0.28
Realized securities gains -- 0.12 0.01
Applicable income tax effect -- (0.04) --
Gain (loss) on sale of assets -- (0.01) (0.01)
Applicable income tax effect -- -- --
Other-than-temporary impairment of securities (0.01) (0.02) (0.01)
Applicable income tax effect -- 0.01 --
Write-downs of foreclosed properties (0.10) (0.20) (0.08)
Applicable income tax effect 0.04 0.07 0.03
(0.07) (0.07) (0.06)
GAAP diluted earnings per common share $ 0.19 $ 0.18 $ 0.22
SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF)
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures
For the Quarter Ended
Dollars in thousands 3/31/2013 3/31/2012 12/31/2012
Total revenue - excluding realized securities gains, gains/losses on sales of assets, other-than-temporary impairment of securities and write-downs of foreclosed properties $ 12,518 $ 12,773 $ 12,714
Realized securities gains 42 1,165 103
Gain (loss) on sale of assets (40) (77) (94)
Other-than-temporary impairment of securities (54) (229) (76)
Write-downs of foreclosed properties (929) (1,912) (748)
(981) (1,053) (815)
GAAP total revenue $ 11,537 $ 11,720 $ 11,899
Total noninterest income - excluding realized securities gains, gains/losses on sales of assets, other-than-temporary impairment of securities and write-downs of foreclosed properties $ 2,760 $ 2,755 $ 2,818
Realized securities gains 42 1,165 103
Gain (loss) on sale of assets (40) (77) (94)
Other-than-temporary impairment of securities (54) (229) (76)
Write-downs of foreclosed properties (929) (1,912) (748)
(981) (1,053) (815)
GAAP total noninterest income $ 1,779 $ 1,702 $ 2,003

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

Source:Summit Financial Group, Inc.