Summit Financial Group Reports Fourth Quarter 2021 EPS of $0.95 on Continued Loan Growth and Record Net Interest Income, Total Revenue and Net Income
Summit Financial Group (SMMF) reported strong Q4 2021 results, with net income increasing 2.8% to $12.4 million, or $0.95 per diluted share. Yearly earnings rose 44.1% to $45.1 million. Total loans grew 6.4% in the quarter, while net interest income also increased by 2.8%, reaching $28.8 million. The efficiency ratio improved to 49.04%. Despite a $1.5 million provision for credit losses, nonperforming assets decreased to 0.63% of total assets. The company raised $75 million in capital via subordinated notes. Tangible book value per share increased to $19.54.
- Q4 2021 net income rose 2.8% to $12.4 million.
- Yearly earnings increased 44.1% to $45.1 million.
- Total loans grew 6.4% in Q4 and 20.9% year-over-year.
- Net interest income increased 10.0% year-over-year, reaching $28.8 million.
- Efficiency ratio improved to 49.04%.
- Provision for credit losses in Q4 2021 was $1.5 million, up from zero in Q3 2021.
- Residential real estate and consumer lending declined 0.5% in Q4.
MOOREFIELD, W.Va., Jan. 27, 2022 (GLOBE NEWSWIRE) -- Summit Financial Group, Inc. (“Company” or “Summit”) (NASDAQ: SMMF) today reported continued strong financial results for the fourth quarter of 2021, including growth in earnings, net interest income, revenue, and commercial and total loans to new record levels, while maintaining sustained asset quality strength and expense discipline.
The Company, which serves commercial and individual clients across West Virginia, the Washington metropolitan area, Virginia and Kentucky through Summit Community Bank, Inc., grew fourth quarter 2021 net income applicable to common shares to
“We believe we have some of the best bankers in the markets we serve, which has been key to our ability to accelerate organic loan growth through the fourth quarter and position us well with significant commercial new business pipelines heading into 2022,” said H. Charles Maddy, III, President and Chief Executive Officer. “We also continued to manage the balance sheet to maximize profitability while maintaining our low operating expense advantage relative to peers.”
Highlights for Q4 2021
- Total loans, excluding mortgage warehouse lines of credit and Paycheck Protection Program (“PPP”) lending, increased 6.4 percent, or 25.7 percent annualized, during the quarter and 20.9 percent during the year.
- Commercial loans excluding PPP lending increased 8.6 percent (34.4 percent annualized) during the quarter and 34.3 percent during 2021.
- Net interest income increased 2.8 percent from the linked quarter and 10.0 percent from the year-ago period, primarily due to loan growth and lower funding costs.
- Net interest margin (“NIM”) increased 2 basis points to 3.49 percent from the linked quarter, as yield on interest earning assets increased 3 basis points while the cost of funds increased 1 basis point. Summit remains strategically well positioned for a rising rate environment.
- Revenue from net interest income and noninterest income, excluding gains and losses on debt securities and equity investments, grew 6.2 percent from the linked quarter and 11.7 percent from the year-ago quarter.
- Incurred
$1.5 million provision for credit losses in the quarter compared to none in the linked quarter and$3.0 million in the year-ago quarter; period-end allowance for loan credit losses equaled$32.3 million , or 1.17 percent of total loans and 254.4 percent of nonperforming loans. - Grew pre-tax, pre-provision earnings 10.5 percent from the linked quarter and 9.6 percent from the year-ago quarter.
- Achieved an efficiency ratio of 49.04 percent and annualized non-interest expense of 2.02 percent of average assets.
- Reduced property held for sale by 20.8 percent during the quarter and 36.8 percent from December 31, 2020.
- Reduced nonperforming assets (“NPAs”) to 0.63 percent of total assets, excluding restructured assets, down 4 basis points during the quarter and 53 basis points from December 31, 2020.
- Issued
$75 million of growth capital through the private placement of3.25% Fixed-to-Floating Rate Subordinated Notes due 2031.
Results from Operations
Net interest income grew to
Noninterest income, consisting primarily of service fee income from community banking activities and trust and wealth management fees, for fourth quarter 2021 was
Mortgage origination revenue was
Excluding gains and losses on debt securities and equity investments and mortgage servicing rights fair value adjustments, noninterest income was
Revenue from net interest income and noninterest income, excluding gains and losses on debt securities and equity investments and mortgage servicing rights fair value adjustments, grew to
Total noninterest expense increased to
Salary and benefit expenses of
Additionally, other significant factors contributing to the changes in total noninterest expense in the fourth quarter of 2021 were: equipment expense of
- Fraud and robbery losses of
$190,000 during Q4 2021 compared to$36,000 and$86,000 in the linked and year-ago quarters, respectively; - Virginia franchise tax of
$228,000 during Q4 2021 compared to$137,000 and$95,000 in the linked and year-ago quarters, respectively; - Debit card processing expenses of
$340,000 during Q4 2021 compared to$343,000 and$259,000 in the linked and year-ago quarters, respectively; and - Internet banking expenses of
$322,000 during Q4 2021 compared to$306,000 and$279,000 in the linked and year-ago quarters, respectively.
Summit’s efficiency ratio was 49.04 percent in the fourth quarter of 2021 compared to 49.53 percent in the linked quarter and 48.93 percent for the year-ago period. Non-interest expense was 2.02 percent of average assets in the fourth quarter of 2021, compared to 2.01 percent during the linked quarter and 2.22 percent in the year-ago period.
Balance Sheet
At December 31, 2021, total assets were
Total loans net of unearned fees grew to
Total commercial loans, including commercial and industrial (C&I) and commercial real estate (CRE) and excluding PPP lending, grew to
PPP balances paid down to
As Summit deployed excess liquidity to enhance profitability and fund continued loan growth, it lowered total deposits to
Total shareholders’ equity was
Tangible book value per common share increased to
As announced in the first quarter of 2020, the Board of Directors authorized the open market repurchase of up to 750,000 shares of the issued and outstanding shares of Summit's common stock. The timing and quantity of stock purchases under this repurchase plan are at the discretion of management. During the fourth quarter of 2021, 248,244 shares of Summit’s common stock were repurchased under the Plan at an average price of
Asset Quality
Net loan charge-offs (“NCOs”) were
Summit recorded
Summit’s allowance for loan credit losses and allowance for credit losses on unfunded loan commitments were
The allowance for loan credit losses stood at 1.17 percent of total loans at year-end 2021 compared to1.27 percent at September 30, 2021 and 1.34 percent at December 31, 2020.
As of December 31, 2021, NPAs consisting of nonperforming loans, foreclosed properties and repossessed assets, totaled
About the Company
Summit Financial Group, Inc. is the
FORWARD-LOOKING STATEMENTS
This press release contains comments or information that constitute forward-looking statements (within the meaning of the Private Securities Litigation Act of 1995) that are based on current expectations that involve a number of risks and uncertainties. Words such as “expects”, “anticipates”, “believes”, “estimates” and other similar expressions or future or conditional verbs such as “will”, “should”, “would” and “could” are intended to identify such forward-looking statements.
Although we believe the expectations reflected in such forward-looking statements are reasonable, actual results may differ materially. Factors that might cause such a difference include: the effect of the COVID-19 pandemic, including the negative impacts and disruptions on the communities we serve, and the domestic and global economy, which may have an adverse effect on our business; current and future economic and market conditions, including the effects of declines in housing prices, high unemployment rates, U.S. fiscal debt, budget and tax matters, geopolitical matters, and any slowdown in global economic growth; fiscal and monetary policies of the Federal Reserve; future provisions for credit losses on loans and debt securities; changes in nonperforming assets; changes in interest rates and interest rate relationships; demand for products and services; the degree of competition by traditional and non-traditional competitors; the successful integration of operations of our acquisitions; changes in banking laws and regulations; changes in tax laws; the impact of technological advances; the outcomes of contingencies; trends in customer behavior as well as their ability to repay loans; and changes in the national and local economies. We undertake no obligation to revise these statements following the date of this press release.
SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF) | ||||||||
Quarterly Performance Summary (unaudited) | ||||||||
Q4 2021 vs Q4 2020 | ||||||||
For the Quarter Ended | Percent | |||||||
Dollars in thousands | 12/31/2021 | 12/31/2020 | Change | |||||
Statements of Income | ||||||||
Interest income | ||||||||
Loans, including fees | $ | 28,979 | $ | 27,897 | 3.9 | % | ||
Securities | 2,763 | 2,228 | 24.0 | % | ||||
Other | 75 | 51 | 47.1 | % | ||||
Total interest income | 31,817 | 30,176 | 5.4 | % | ||||
Interest expense | ||||||||
Deposits | 1,718 | 2,956 | -41.9 | % | ||||
Borrowings | 1,267 | 1,014 | 25.0 | % | ||||
Total interest expense | 2,985 | 3,970 | -24.8 | % | ||||
Net interest income | 28,832 | 26,206 | 10.0 | % | ||||
Provision for credit losses | 1,500 | 3,000 | n/m | |||||
Net interest income after provision | ||||||||
for credit losses | 27,332 | 23,206 | 17.8 | % | ||||
Noninterest income | ||||||||
Trust and wealth management fees | 847 | 626 | 35.3 | % | ||||
Mortgage origination revenue | 1,361 | 1,163 | 17.0 | % | ||||
Service charges on deposit accounts | 1,501 | 1,305 | 15.0 | % | ||||
Bank card revenue | 1,528 | 1,237 | 23.5 | % | ||||
Gains on equity investments | 202 | - | n/a | |||||
Realized gains/(losses) on debt securities, net | (109 | ) | 912 | -112.0 | % | |||
Bank owned life insurance and annuity income | 293 | 233 | 25.8 | % | ||||
Other income | 330 | 301 | 9.6 | % | ||||
Total noninterest income | 5,953 | 5,777 | 3.0 | % | ||||
Noninterest expense | ||||||||
Salaries and employee benefits | 8,977 | 8,250 | 8.8 | % | ||||
Net occupancy expense | 1,265 | 1,046 | 20.9 | % | ||||
Equipment expense | 1,902 | 1,502 | 26.6 | % | ||||
Professional fees | 438 | 370 | 18.4 | % | ||||
Advertising and public relations | 216 | 207 | 4.3 | % | ||||
Amortization of intangibles | 387 | 409 | -5.4 | % | ||||
FDIC premiums | 330 | 261 | 26.4 | % | ||||
Bank card expense | 703 | 573 | 22.7 | % | ||||
Foreclosed properties expense, net | 403 | 676 | -40.4 | % | ||||
Acquisition-related expense | 57 | 218 | -73.9 | % | ||||
Other expenses | 3,250 | 3,094 | 5.0 | % | ||||
Total noninterest expense | 17,928 | 16,606 | 8.0 | % | ||||
Income before income taxes | 15,357 | 12,377 | 24.1 | % | ||||
Income taxes | 2,777 | 2,126 | 30.6 | % | ||||
Net income | 12,580 | 10,251 | 22.7 | % | ||||
Preferred stock dividends | 225 | - | n/a | |||||
Net income applicable to common shares | $ | 12,355 | $ | 10,251 | 20.5 | % | ||
SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF) | |||||||||
Quarterly Performance Summary (unaudited) | |||||||||
Q4 2021 vs Q4 2020 | |||||||||
For the Quarter Ended | Percent | ||||||||
12/31/2021 | 12/31/2020 | Change | |||||||
Per Share Data | |||||||||
Earnings per common share | |||||||||
Basic | $ | 0.96 | $ | 0.79 | 21.5 | % | |||
Diluted | $ | 0.95 | $ | 0.79 | 20.3 | % | |||
Cash dividends per common share | $ | 0.18 | $ | 0.17 | 5.9 | % | |||
Common stock dividend payout ratio | -15.1 | % | |||||||
Average common shares outstanding | |||||||||
Basic | 12,916,555 | 12,932,768 | -0.1 | % | |||||
Diluted | 12,976,181 | 12,980,041 | -0.0 | % | |||||
Common shares outstanding at period end | 12,743,125 | 12,942,004 | -1.5 | % | |||||
Performance Ratios | |||||||||
Return on average equity | 3.9 | % | |||||||
Return on average tangible equity (C) | 5.5 | % | |||||||
Return on average tangible common equity (D) | 11.8 | % | |||||||
Return on average assets | 3.6 | % | |||||||
Net interest margin (A) | -7.2 | % | |||||||
Efficiency ratio (B) | 0.2 | % | |||||||
NOTES
(A) – Presented on a tax-equivalent basis assuming a federal tax rate of
(B) – Computed on a tax equivalent basis excluding acquisition-related expenses, gains/losses on sales of assets, write-downs of OREO properties to fair value and amortization of intangibles.
(C) – Return on average tangible equity = (Net income – Amortization of intangibles [after-tax]) / (Average shareholders’ equity – Average intangible assets).
(D) – Return on average tangible common equity = (Net income – Amortization of intangibles [after-tax]) / (Average common shareholders’ equity – Average intangible assets).
SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF) | |||||||||
Annual Performance Summary (unaudited) | |||||||||
2021 vs 2020 | |||||||||
For the Year Ended | Percent | ||||||||
Dollars in thousands | 12/31/2021 | 12/31/2020 | Change | ||||||
Statements of Income | |||||||||
Interest income | |||||||||
Loans, including fees | $ | 112,630 | $ | 105,564 | 6.7 | % | |||
Securities | 9,470 | 9,173 | 3.2 | % | |||||
Other | 316 | 266 | 18.8 | % | |||||
Total interest income | 122,416 | 115,003 | 6.4 | % | |||||
Interest expense | |||||||||
Deposits | 8,182 | 16,044 | -49.0 | % | |||||
Borrowings | 4,302 | 3,477 | 23.7 | % | |||||
Total interest expense | 12,484 | 19,521 | -36.0 | % | |||||
Net interest income | 109,932 | 95,482 | 15.1 | % | |||||
Provision for credit losses | 4,000 | 14,500 | n/m | ||||||
Net interest income after provision | |||||||||
for credit losses | 105,932 | 80,982 | 30.8 | % | |||||
Noninterest income | |||||||||
Trust and wealth management fees | 2,886 | 2,495 | 15.7 | % | |||||
Mortgage origination revenue | 3,999 | 2,799 | 42.9 | % | |||||
Service charges on deposit accounts | 5,032 | 4,588 | 9.7 | % | |||||
Bank card revenue | 5,896 | 4,494 | 31.2 | % | |||||
Gains on equity investments | 202 | - | n/a | ||||||
Realized gains on debt securities, net | 425 | 3,472 | -87.8 | % | |||||
Bank owned life insurance and annuity income | 1,026 | 1,567 | -34.5 | % | |||||
Other income | 742 | 668 | 11.1 | % | |||||
Total noninterest income | 20,208 | 20,083 | 0.6 | % | |||||
Noninterest expense | |||||||||
Salaries and employee benefits | 34,386 | 32,211 | 6.8 | % | |||||
Net occupancy expense | 4,824 | 3,963 | 21.7 | % | |||||
Equipment expense | 6,990 | 5,765 | 21.2 | % | |||||
Professional fees | 1,578 | 1,538 | 2.6 | % | |||||
Advertising and public relations | 697 | 596 | 16.9 | % | |||||
Amortization of intangibles | 1,563 | 1,659 | -5.8 | % | |||||
FDIC premiums | 1,449 | 856 | 69.3 | % | |||||
Bank card expense | 2,668 | 2,225 | 19.9 | % | |||||
Foreclosed properties expense, net | 1,745 | 2,490 | -29.9 | % | |||||
Acquisition-related expense | 1,224 | 1,671 | -26.8 | % | |||||
Other expenses | 11,615 | 9,337 | 24.4 | % | |||||
Total noninterest expense | 68,739 | 62,311 | 10.3 | % | |||||
Income before income taxes | 57,401 | 38,754 | 48.1 | % | |||||
Income taxes | 11,663 | 7,428 | 57.0 | % | |||||
Net income | 45,738 | 31,326 | 46.0 | % | |||||
Preferred stock dividends | 589 | - | n/a | ||||||
Net income applicable to common shares | $ | 45,149 | $ | 31,326 | 44.1 | % |
SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF) | |||||||||
Annual Performance Summary (unaudited) | |||||||||
2021 vs 2020 | |||||||||
For the Year Ended | Percent | ||||||||
12/31/2021 | 12/31/20020 | Change | |||||||
Per Share Data | |||||||||
Earnings per common share | |||||||||
Basic | $ | 3.49 | $ | 2.42 | 44.2 | % | |||
Diluted | $ | 3.47 | $ | 2.41 | 44.0 | % | |||
Cash dividends per common share | $ | 0.70 | $ | 0.68 | 2.9 | % | |||
Common stock dividend payout ratio | -29.6 | % | |||||||
Average common shares outstanding | |||||||||
Basic | 12,943,883 | 12,935,430 | 0.1 | % | |||||
Diluted | 13,003,428 | 12,975,385 | 0.2 | % | |||||
Common shares outstanding at period end | 12,743,125 | 12,942,004 | -1.5 | % | |||||
Performance Ratios | |||||||||
Return on average equity | 25.1 | % | |||||||
Return on average tangible equity (C) | 27.0 | % | |||||||
Return on average tangible common equity (D) | 32.5 | % | |||||||
Return on average assets | 20.4 | % | |||||||
Net interest margin (A) | -4.6 | % | |||||||
Efficiency ratio (B) | -1.6 | % | |||||||
NOTES
(A) – Presented on a tax-equivalent basis assuming a federal tax rate of
(B) – Computed on a tax equivalent basis excluding acquisition-related expenses, gains/losses on sales of assets, write-downs of OREO properties to fair value and amortization of intangibles.
(C) – Return on average tangible equity = (Net income – Amortization of intangibles [after-tax]) / (Average shareholders’ equity – Average intangible assets).
(D) – Return on average tangible common equity = (Net income – Amortization of intangibles [after-tax]) / (Average common shareholders’ equity – Average intangible assets).
SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF) | |||||||||||||||
Five Quarter Performance Summary (unaudited) | |||||||||||||||
For the Quarter Ended | |||||||||||||||
Dollars in thousands | 12/31/2021 | 9/30/2021 | 6/30/2021 | 3/31/2021 | 12/31/2020 | ||||||||||
Statements of Income | |||||||||||||||
Interest income | |||||||||||||||
Loans, including fees | $ | 28,979 | $ | 28,416 | $ | 27,697 | $ | 27,538 | $ | 27,897 | |||||
Securities | 2,763 | 2,348 | 2,202 | 2,157 | 2,228 | ||||||||||
Other | 75 | 118 | 56 | 67 | 51 | ||||||||||
Total interest income | 31,817 | 30,882 | 29,955 | 29,762 | 30,176 | ||||||||||
Interest expense | |||||||||||||||
Deposits | 1,718 | 1,832 | 2,136 | 2,496 | 2,956 | ||||||||||
Borrowings | 1,267 | 1,013 | 1,008 | 1,014 | 1,014 | ||||||||||
Total interest expense | 2,985 | 2,845 | 3,144 | 3,510 | 3,970 | ||||||||||
Net interest income | 28,832 | 28,037 | 26,811 | 26,252 | 26,206 | ||||||||||
Provision for credit losses | 1,500 | - | 1,000 | 1,500 | 3,000 | ||||||||||
Net interest income after provision | |||||||||||||||
for credit losses | 27,332 | 28,037 | 25,811 | 24,752 | 23,206 | ||||||||||
Noninterest income | |||||||||||||||
Trust and wealth management fees | 847 | 718 | 683 | 638 | 626 | ||||||||||
Mortgage origination revenue | 1,361 | 742 | 898 | 998 | 1,163 | ||||||||||
Service charges on deposit accounts | 1,501 | 1,338 | 1,093 | 1,100 | 1,305 | ||||||||||
Bank card revenue | 1,528 | 1,509 | 1,519 | 1,341 | 1,237 | ||||||||||
Gains on equity investments | 202 | - | - | - | - | ||||||||||
Realized gains/(losses) on debt securities, net | (109 | ) | (68 | ) | 127 | 476 | 912 | ||||||||
Bank owned life insurance and annuity income | 293 | 160 | 275 | 298 | 233 | ||||||||||
Other income | 330 | 168 | 120 | 123 | 301 | ||||||||||
Total noninterest income | 5,953 | 4,567 | 4,715 | 4,974 | 5,777 | ||||||||||
Noninterest expense | |||||||||||||||
Salaries and employee benefits | 8,977 | 8,745 | 8,230 | 8,435 | 8,250 | ||||||||||
Net occupancy expense | 1,265 | 1,254 | 1,131 | 1,174 | 1,046 | ||||||||||
Equipment expense | 1,902 | 1,908 | 1,598 | 1,581 | 1,502 | ||||||||||
Professional fees | 438 | 374 | 428 | 338 | 370 | ||||||||||
Advertising and public relations | 216 | 254 | 138 | 90 | 207 | ||||||||||
Amortization of intangibles | 387 | 390 | 382 | 405 | 409 | ||||||||||
FDIC premiums | 330 | 354 | 488 | 277 | 261 | ||||||||||
Bank card expense | 703 | 705 | 685 | 573 | 573 | ||||||||||
Foreclosed properties expense, net | 403 | 370 | 746 | 227 | 676 | ||||||||||
Acquisition-related expenses | 57 | 273 | 454 | 440 | 218 | ||||||||||
Other expenses | 3,250 | 2,716 | 2,756 | 2,893 | 3,094 | ||||||||||
Total noninterest expense | 17,928 | 17,343 | 17,036 | 16,433 | 16,606 | ||||||||||
Income before income taxes | 15,357 | 15,261 | 13,490 | 13,293 | 12,377 | ||||||||||
Income tax expense | 2,777 | 3,023 | 2,930 | 2,933 | 2,126 | ||||||||||
Net income | 12,580 | 12,238 | 10,560 | 10,360 | 10,251 | ||||||||||
Preferred stock dividends | 225 | 225 | 139 | - | - | ||||||||||
Net income applicable to common shares | $ | 12,355 | $ | 12,013 | $ | 10,421 | $ | 10,360 | $ | 10,251 | |||||
SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF) | ||||||||||||||||
Five Quarter Performance Summary (unaudited) | ||||||||||||||||
For the Quarter Ended | ||||||||||||||||
12/31/2021 | 9/30/2021 | 6/30/2021 | 3/31/2021 | 12/31/2020 | ||||||||||||
Per Share Data | ||||||||||||||||
Earnings per common share | ||||||||||||||||
Basic | $ | 0.96 | $ | 0.93 | $ | 0.80 | $ | 0.80 | $ | 0.79 | ||||||
Diluted | $ | 0.95 | $ | 0.92 | $ | 0.80 | $ | 0.80 | $ | 0.79 | ||||||
Cash dividends per common share | $ | 0.18 | $ | 0.18 | $ | 0.17 | $ | 0.17 | $ | 0.17 | ||||||
Common stock dividend payout ratio | ||||||||||||||||
Average common shares outstanding | ||||||||||||||||
Basic | 12,916,555 | 12,964,575 | 12,952,357 | 12,942,099 | 12,932,768 | |||||||||||
Diluted | 12,976,181 | 13,018,672 | 13,013,714 | 13,002,062 | 12,980,041 | |||||||||||
Common shares outstanding at period end | 12,743,125 | 12,976,693 | 12,963,057 | 12,950,714 | 12,942,004 | |||||||||||
Performance Ratios | ||||||||||||||||
Return on average equity | ||||||||||||||||
Return on average tangible equity (C) | ||||||||||||||||
Return on average tangible common equity (D) | ||||||||||||||||
Return on average assets | ||||||||||||||||
Net interest margin (A) | ||||||||||||||||
Efficiency ratio (B) |
NOTES
(A) – Presented on a tax-equivalent basis assuming a federal tax rate of
(B) – Computed on a tax equivalent basis excluding acquisition-related expenses, gains/losses on sales of assets, write-downs of OREO properties to fair value and amortization of intangibles.
(C) – Return on average tangible equity = (Net income – Amortization of intangibles [after-tax]) / (Average shareholders’ equity – Average intangible assets).
(D) – Return on average tangible common equity = (Net income – Amortization of intangibles [after-tax]) / (Average common shareholders’ equity – Average intangible assets).
SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF) | ||||||||||||||||
Selected Balance Sheet Data (unaudited) | ||||||||||||||||
Dollars in thousands, except per share amounts | 12/31/2021 | 9/30/2021 | 6/30/2021 | 3/31/2021 | 12/31/2020 | |||||||||||
Assets | ||||||||||||||||
Cash and due from banks | $ | 21,006 | $ | 21,247 | $ | 18,707 | $ | 20,732 | $ | 19,522 | ||||||
Interest bearing deposits other banks | 57,452 | 189,862 | 176,282 | 155,865 | 80,265 | |||||||||||
Debt securities, available for sale | 401,103 | 424,741 | 345,742 | 311,384 | 286,127 | |||||||||||
Debt securities, held to maturity | 98,060 | 98,528 | 98,995 | 99,457 | 99,914 | |||||||||||
Equity investments | 20,202 | - | - | - | - | |||||||||||
Other investments | 11,304 | 10,649 | 10,661 | 10,776 | 14,185 | |||||||||||
Loans, net | 2,729,093 | 2,521,704 | 2,395,885 | 2,418,029 | 2,379,907 | |||||||||||
Property held for sale | 9,858 | 12,450 | 13,170 | 13,918 | 15,588 | |||||||||||
Premises and equipment, net | 56,371 | 56,818 | 53,104 | 53,289 | 52,537 | |||||||||||
Goodwill and other intangible assets | 63,590 | 63,977 | 53,858 | 54,239 | 55,123 | |||||||||||
Cash surrender value of life insurance policies and annuities | 60,613 | 60,241 | 60,087 | 59,740 | 59,438 | |||||||||||
Other assets | 48,067 | 48,734 | 46,042 | 50,706 | 43,778 | |||||||||||
Total assets | $ | 3,576,719 | $ | 3,508,951 | $ | 3,272,533 | $ | 3,248,135 | $ | 3,106,384 | ||||||
Liabilities and Shareholders' Equity | ||||||||||||||||
Deposits | $ | 2,943,089 | $ | 2,955,940 | $ | 2,729,205 | $ | 2,725,010 | $ | 2,595,651 | ||||||
Short-term borrowings | 140,146 | 140,146 | 140,146 | 140,145 | 140,146 | |||||||||||
Long-term borrowings and | ||||||||||||||||
subordinated debentures | 123,159 | 49,739 | 49,710 | 49,681 | 49,652 | |||||||||||
Other liabilities | 42,852 | 39,837 | 38,265 | 39,854 | 39,355 | |||||||||||
Shareholders' equity - preferred | 14,920 | 14,920 | 14,920 | - | - | |||||||||||
Shareholders' equity - common | 312,553 | 308,369 | 300,287 | 293,445 | 281,580 | |||||||||||
Total liabilities and shareholders' equity | $ | 3,576,719 | $ | 3,508,951 | $ | 3,272,533 | $ | 3,248,135 | $ | 3,106,384 | ||||||
Book value per common share | $ | 24.53 | $ | 23.76 | $ | 23.16 | $ | 22.66 | $ | 21.76 | ||||||
Tangible book value per common share (A) | $ | 19.54 | $ | 18.83 | $ | 19.01 | $ | 18.47 | $ | 17.50 | ||||||
Tangible common equity to tangible assets (B) | ||||||||||||||||
NOTES
(A) – Tangible book value per share = (Common shareholders’ equity – Intangible assets) / Common shares outstanding.
(B) – Tangible common equity to tangible assets = (Common shareholders’ equity – Intangible assets) / (Total assets – Intangible assets).
SUMMIT FINANCIAL GROUP INC. (NASDAQ: SMMF) | |||||||||||
Regulatory Capital Ratios (unaudited) | |||||||||||
12/31/2021 | 9/30/2021 | 6/30/2021 | 3/31/2021 | 12/31/2020 | |||||||
Summit Financial Group, Inc. | |||||||||||
CET1 Risk-based Capital | 8.4 | % | 9.0 | % | 9.6 | % | 9.3 | % | 9.3 | % | |
Tier 1 Risk-based Capital | 9.5 | % | 10.2 | % | 10.9 | % | 10.1 | % | 10.0 | % | |
Total Risk-based Capital | 13.8 | % | 12.1 | % | 13.0 | % | 12.1 | % | 12.1 | % | |
Tier 1 Leverage | 8.3 | % | 8.4 | % | 8.9 | % | 8.5 | % | 8.6 | % | |
Summit Community Bank, Inc. | |||||||||||
CET1 Risk-based Capital | 11.9 | % | 11.2 | % | 11.9 | % | 11.1 | % | 11.1 | % | |
Tier 1 Risk-based Capital | 11.9 | % | 11.2 | % | 11.9 | % | 11.1 | % | 11.1 | % | |
Total Risk-based Capital | 12.8 | % | 12.1 | % | 12.9 | % | 12.0 | % | 12.0 | % | |
Tier 1 Leverage | 10.4 | % | 9.2 | % | 9.7 | % | 9.3 | % | 9.5 | % | |
SUMMIT FINANCIAL GROUP INC. (NASDAQ: SMMF) | ||||||||||||||||
Loan Composition (unaudited) | ||||||||||||||||
Dollars in thousands | 12/31/2021 | 9/30/2021 | 6/30/2021 | 3/31/2021 | 12/31/2020 | |||||||||||
Commercial | $ | 365,301 | $ | 317,855 | $ | 326,468 | $ | 348,022 | $ | 306,885 | ||||||
Mortgage warehouse lines | 227,869 | 161,628 | 105,288 | 187,995 | 251,810 | |||||||||||
Commercial real estate | ||||||||||||||||
Owner occupied | 484,708 | 439,202 | 392,164 | 358,200 | 351,860 | |||||||||||
Non-owner occupied | 866,031 | 835,071 | 784,415 | 735,594 | 685,565 | |||||||||||
Construction and development | ||||||||||||||||
Land and development | 100,805 | 99,718 | 102,670 | 106,312 | 107,342 | |||||||||||
Construction | 146,038 | 127,432 | 140,788 | 126,011 | 91,100 | |||||||||||
Residential real estate | ||||||||||||||||
Conventional | 384,794 | 394,889 | 398,239 | 411,103 | 425,519 | |||||||||||
Jumbo | 79,108 | 71,977 | 71,694 | 65,851 | 74,185 | |||||||||||
Home equity | 72,112 | 71,496 | 72,956 | 77,684 | 81,588 | |||||||||||
Consumer | 31,923 | 32,284 | 32,732 | 32,924 | 33,906 | |||||||||||
Other | 2,702 | 2,558 | 2,356 | 2,375 | 2,393 | |||||||||||
Total loans, net of unearned fees | 2,761,391 | 2,554,110 | 2,429,770 | 2,452,071 | 2,412,153 | |||||||||||
Less allowance for credit losses | 32,298 | 32,406 | 33,885 | 34,042 | 32,246 | |||||||||||
Loans, net | $ | 2,729,093 | $ | 2,521,704 | $ | 2,395,885 | $ | 2,418,029 | $ | 2,379,907 | ||||||
Unfunded loan commitments | $ | 688,493 | $ | 627,461 | $ | 535,587 | $ | 556,910 | $ | 534,256 | ||||||
SUMMIT FINANCIAL GROUP INC. (NASDAQ: SMMF) | ||||||||||||||||
Deposit Composition (unaudited) | ||||||||||||||||
Dollars in thousands | 12/31/2021 | 9/30/2021 | 6/30/2021 | 3/31/2021 | 12/31/2020 | |||||||||||
Core deposits | ||||||||||||||||
Non-interest bearing checking | $ | 568,986 | $ | 575,542 | $ | 503,097 | $ | 505,264 | $ | 440,819 | ||||||
Interest bearing checking | 1,127,298 | 1,121,028 | 1,005,725 | 988,204 | 934,185 | |||||||||||
Savings | 698,156 | 693,686 | 677,000 | 656,514 | 621,168 | |||||||||||
Time deposits | 451,713 | 467,024 | 441,139 | 456,431 | 460,443 | |||||||||||
Total core deposits | 2,846,153 | 2,857,280 | 2,626,961 | 2,606,413 | 2,456,615 | |||||||||||
Brokered time deposits | 14,677 | 14,671 | 23,521 | 39,125 | 55,454 | |||||||||||
Other non-core time deposits | 82,259 | 83,989 | 78,723 | 79,472 | 83,582 | |||||||||||
Total deposits | $ | 2,943,089 | $ | 2,955,940 | $ | 2,729,205 | $ | 2,725,010 | $ | 2,595,651 | ||||||
SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF) | ||||||||||||||||
Asset Quality Information (unaudited) | ||||||||||||||||
For the Quarter Ended | ||||||||||||||||
Dollars in thousands | 12/31/2021 | 9/30/2021 | 6/30/2021 | 3/31/2021 | 12/31/2020 | |||||||||||
Gross loan charge-offs | $ | 282 | $ | 528 | $ | 343 | $ | 354 | $ | 434 | ||||||
Gross loan recoveries | (89 | ) | (158 | ) | (141 | ) | (165 | ) | (195 | ) | ||||||
Net loan charge-offs | $ | 193 | $ | 370 | $ | 202 | $ | 189 | $ | 239 | ||||||
Net loan charge-offs to average loans (annualized) | ||||||||||||||||
Allowance for loan credit losses | $ | 32,298 | $ | 32,406 | $ | 33,885 | $ | 34,042 | $ | 32,246 | ||||||
Allowance for loan credit losses as a percentage | ||||||||||||||||
of period end loans | ||||||||||||||||
Allowance for credit losses on | ||||||||||||||||
unfunded loan commitments ("ULC") | $ | 7,275 | $ | 5,860 | $ | 4,660 | $ | 3,705 | $ | 4,190 | ||||||
Allowance for credit losses on ULC | ||||||||||||||||
as a percentage of peiod end ULC | ||||||||||||||||
Nonperforming assets: | ||||||||||||||||
Nonperforming loans | ||||||||||||||||
Commercial | $ | 740 | $ | 459 | $ | 968 | $ | 848 | $ | 525 | ||||||
Commercial real estate | 4,603 | 4,643 | 14,430 | 17,137 | 14,237 | |||||||||||
Residential construction and development | 1,560 | 448 | 621 | 626 | 235 | |||||||||||
Residential real estate | 5,772 | 5,514 | 6,800 | 6,667 | 5,264 | |||||||||||
Consumer | 21 | 48 | 38 | 54 | 74 | |||||||||||
Other | - | - | - | - | - | |||||||||||
Total nonperforming loans | 12,696 | 11,112 | 22,857 | 25,332 | 20,335 | |||||||||||
Foreclosed properties | ||||||||||||||||
Commercial real estate | 1,389 | 2,192 | 2,281 | 2,281 | 2,581 | |||||||||||
Commercial construction and development | 2,332 | 2,925 | 3,146 | 3,884 | 4,154 | |||||||||||
Residential construction and development | 5,561 | 6,712 | 6,859 | 7,129 | 7,791 | |||||||||||
Residential real estate | 576 | 621 | 884 | 624 | 1,062 | |||||||||||
Total foreclosed properties | 9,858 | 12,450 | 13,170 | 13,918 | 15,588 | |||||||||||
Other repossessed assets | - | - | - | - | - | |||||||||||
Total nonperforming assets | $ | 22,554 | $ | 23,562 | $ | 36,027 | $ | 39,250 | $ | 35,923 | ||||||
Nonperforming loans to period end loans | ||||||||||||||||
Nonperforming assets to period end assets | ||||||||||||||||
Troubled debt restructurings | ||||||||||||||||
Performing | $ | 18,887 | $ | 20,535 | $ | 20,799 | $ | 20,462 | $ | 21,375 | ||||||
Nonperforming | 2,039 | 1,141 | 1,235 | 3,828 | 3,127 | |||||||||||
Total troubled debt restructurings | $ | 20,926 | $ | 21,676 | $ | 22,034 | $ | 24,290 | $ | 24,502 |
SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF) | |||||||||||||||
Loans Past Due 30-89 Days (unaudited) | |||||||||||||||
Dollars in thousands | 12/31/2021 | 9/30/2021 | 6/30/2021 | 3/31/2021 | 12/31/2020 | ||||||||||
Commercial | $ | 751 | $ | 304 | $ | 414 | $ | 335 | $ | 1 | |||||
Commercial real estate | 683 | 281 | 733 | 508 | 274 | ||||||||||
Construction and development | 45 | 1,215 | 1,911 | 330 | 47 | ||||||||||
Residential real estate | 3,552 | 2,643 | 3,594 | 2,146 | 4,405 | ||||||||||
Consumer | 190 | 193 | 404 | 96 | 233 | ||||||||||
Other | 22 | 1 | - | 3 | 5 | ||||||||||
Total | $ | 5,243 | $ | 4,637 | $ | 7,056 | $ | 3,418 | $ | 4,965 | |||||
SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF) | ||||||||||||||||||||||||||
Average Balance Sheet, Interest Earnings & Expenses and Average Rates | ||||||||||||||||||||||||||
Q4 2021 vs Q3 2021 vs Q4 2020 (unaudited) | ||||||||||||||||||||||||||
Q4 2021 | Q3 2021 | Q4 2020 | ||||||||||||||||||||||||
Average | Earnings / | Yield / | Average | Earnings / | Yield / | Average | Earnings / | Yield / | ||||||||||||||||||
Dollars in thousands | Balances | Expense | Rate | Balances | Expense | Rate | Balances | Expense | Rate | |||||||||||||||||
ASSETS | ||||||||||||||||||||||||||
Interest earning assets | ||||||||||||||||||||||||||
Loans, net of unearned interest (1) | ||||||||||||||||||||||||||
Taxable | $ | 2,640,975 | $ | 28,916 | 4.34 | % | $ | 2,495,880 | $ | 28,340 | 4.50 | % | $ | 2,292,797 | $ | 27,774 | 4.82 | % | ||||||||
Tax-exempt (2) | 6,888 | 81 | 4.67 | % | 7,871 | 96 | 4.84 | % | 13,062 | 156 | 4.75 | % | ||||||||||||||
Securities | ||||||||||||||||||||||||||
Taxable | 349,541 | 1,806 | 2.05 | % | 315,082 | 1,432 | 1.80 | % | 258,594 | 1,341 | 2.06 | % | ||||||||||||||
Tax-exempt (2) | 177,757 | 1,212 | 2.71 | % | 166,285 | 1,159 | 2.77 | % | 147,979 | 1,122 | 3.02 | % | ||||||||||||||
Interest bearing deposits other banks | ||||||||||||||||||||||||||
and Federal funds sold | 132,471 | 75 | 0.22 | % | 248,315 | 118 | 0.19 | % | 87,151 | 51 | 0.23 | % | ||||||||||||||
Total interest earning assets | 3,307,632 | 32,090 | 3.85 | % | 3,233,433 | 31,145 | 3.82 | % | 2,799,583 | 30,444 | 4.33 | % | ||||||||||||||
Noninterest earning assets | ||||||||||||||||||||||||||
Cash & due from banks | 21,037 | 20,077 | 16,846 | |||||||||||||||||||||||
Premises & equipment | 56,566 | 55,908 | 52,688 | |||||||||||||||||||||||
Other assets | 190,445 | 175,975 | 157,436 | |||||||||||||||||||||||
Allowance for credit losses | (32,691 | ) | (33,911 | ) | (30,778 | ) | ||||||||||||||||||||
Total assets | $ | 3,542,989 | $ | 3,451,482 | $ | 2,995,775 | ||||||||||||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||
Interest bearing liabilities | ||||||||||||||||||||||||||
Interest bearing | ||||||||||||||||||||||||||
demand deposits | 1,128,637 | 319 | 0.11 | % | $ | 1,092,392 | $ | 325 | 0.12 | % | $ | 895,325 | $ | 357 | 0.16 | % | ||||||||||
Savings deposits | 692,893 | 590 | 0.34 | % | 691,411 | 602 | 0.35 | % | 607,481 | 716 | 0.47 | % | ||||||||||||||
Time deposits | 560,140 | 809 | 0.57 | % | 571,445 | 905 | 0.63 | % | 566,917 | 1,883 | 1.32 | % | ||||||||||||||
Short-term borrowings | 140,146 | 365 | 1.03 | % | 140,146 | 470 | 1.33 | % | 140,243 | 467 | 1.32 | % | ||||||||||||||
Long-term borrowings and | ||||||||||||||||||||||||||
subordinated debentures | 86,509 | 902 | 4.14 | % | 49,724 | 543 | 4.33 | % | 49,637 | 547 | 4.38 | % | ||||||||||||||
Total interest bearing liabilities | 2,608,325 | 2,985 | 0.45 | % | 2,545,118 | 2,845 | 0.44 | % | 2,259,603 | 3,970 | 0.70 | % | ||||||||||||||
Noninterest bearing liabilities | ||||||||||||||||||||||||||
Demand deposits | 568,764 | 547,627 | 426,441 | |||||||||||||||||||||||
Other liabilities | 40,905 | 38,789 | 34,558 | |||||||||||||||||||||||
Total liabilities | 3,217,994 | 3,131,534 | 2,720,602 | |||||||||||||||||||||||
Shareholders' equity - preferred | 14,920 | 14,920 | - | |||||||||||||||||||||||
Shareholders' equity - common | 310,075 | 305,028 | 275,173 | |||||||||||||||||||||||
Total liabilities and | ||||||||||||||||||||||||||
shareholders' equity | $ | 3,542,989 | $ | 3,451,482 | $ | 2,995,775 | ||||||||||||||||||||
NET INTEREST EARNINGS | $ | 29,105 | $ | 28,300 | $ | 26,474 | ||||||||||||||||||||
NET INTEREST MARGIN | 3.49 | % | 3.47 | % | 3.76 | % | ||||||||||||||||||||
(1) - For purposes of this table, nonaccrual loans are included in average loan balances. | ||||||||||||||||||||||||||
(2) - Interest income on tax-exempt securities and loans has been adjusted assuming a Federal tax rate of | ||||||||||||||||||||||||||
The tax equivalent adjustment resulted in an increase in interest income of | ||||||||||||||||||||||||||
Q3 2021 and Q4 2020. | ||||||||||||||||||||||||||
SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF) | ||||||||||||||||||
Average Balance Sheet, Interest Earnings & Expenses and Average Rates | ||||||||||||||||||
YTD 2021 vs YTD 2020 (unaudited) | ||||||||||||||||||
YTD 2021 | YTD 2020 | |||||||||||||||||
Average | Earnings / | Yield / | Average | Earnings / | Yield / | |||||||||||||
Dollars in thousands | Balances | Expense | Rate | Balances | Expense | Rate | ||||||||||||
ASSETS | ||||||||||||||||||
Interest earning assets | ||||||||||||||||||
Loans, net of unearned interest (1) | ||||||||||||||||||
Taxable | $ | 2,487,885 | $ | 112,269 | 4.51 | % | $ | 2,150,294 | $ | 104,986 | 4.88 | % | ||||||
Tax-exempt (2) | 9,681 | 458 | 4.73 | % | 15,352 | 732 | 4.77 | % | ||||||||||
Securities | ||||||||||||||||||
Taxable | 301,446 | 5,883 | 1.95 | % | 256,893 | 5,996 | 2.33 | % | ||||||||||
Tax-exempt (2) | 159,266 | 4,541 | 2.85 | % | 122,386 | 4,020 | 3.28 | % | ||||||||||
Interest bearing deposits other banks | ||||||||||||||||||
and Federal funds sold | 175,615 | 315 | 0.18 | % | 56,399 | 266 | 0.47 | % | ||||||||||
Total interest earning assets | 3,133,893 | 123,466 | 3.94 | % | 2,601,324 | 116,000 | 4.46 | % | ||||||||||
Noninterest earning assets | ||||||||||||||||||
Cash & due from banks | 19,582 | 16,139 | ||||||||||||||||
Premises & equipment | 54,762 | 50,418 | ||||||||||||||||
Other assets | 178,535 | 143,284 | ||||||||||||||||
Allowance for loan losses | (33,491 | ) | (26,915 | ) | ||||||||||||||
Total assets | $ | 3,353,281 | $ | 2,784,250 | ||||||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||||||
Liabilities | ||||||||||||||||||
Interest bearing liabilities | ||||||||||||||||||
Interest bearing | ||||||||||||||||||
demand deposits | $ | 1,044,817 | $ | 1,408 | 0.13 | % | $ | 789,064 | $ | 2,187 | 0.28 | % | ||||||
Savings deposits | 673,259 | 2,471 | 0.37 | % | 539,625 | 4,178 | 0.77 | % | ||||||||||
Time deposits | 569,420 | 4,302 | 0.76 | % | 598,085 | 9,679 | 1.62 | % | ||||||||||
Short-term borrowings | 140,146 | 1,768 | 1.26 | % | 130,411 | 2,330 | 1.79 | % | ||||||||||
Long-term borrowings and | ||||||||||||||||||
subordinated debentures | 58,974 | 2,535 | 4.30 | % | 28,396 | 1,147 | 4.04 | % | ||||||||||
2,486,616 | 12,484 | 0.50 | % | 2,085,581 | 19,521 | 0.94 | % | |||||||||||
Noninterest bearing liabilities | ||||||||||||||||||
Demand deposits | 518,311 | 401,502 | ||||||||||||||||
Other liabilities | 38,545 | 31,712 | ||||||||||||||||
Total liabilities | 3,043,472 | 2,518,795 | ||||||||||||||||
Shareholders' equity - preferred | 10,327 | - | ||||||||||||||||
Shareholders' equity - common | 299,482 | 265,455 | ||||||||||||||||
Total liabilities and | ||||||||||||||||||
shareholders' equity | $ | 3,353,281 | $ | 2,784,250 | ||||||||||||||
NET INTEREST EARNINGS | $ | 110,982 | $ | 96,479 | ||||||||||||||
NET INTEREST MARGIN | 3.54 | % | 3.71 | % | ||||||||||||||
(1) - For purposes of this table, nonaccrual loans are included in average loan balances. | ||||||||||||||||||
(2) - Interest income on tax-exempt securities and loans has been adjusted assuming a Federal tax rate of | ||||||||||||||||||
The tax equivalent adjustment resulted in an increase in interest income of | ||||||||||||||||||
YTD 2021 and YTD 2020 periods, respectively. | ||||||||||||||||||
Contact: | Robert S. Tissue, Executive Vice President & CFO |
Telephone: | (304) 530-0552 |
Email: | rtissue@summitfgi.com |
FAQ
What were Summit Financial Group's Q4 2021 earnings?
How much did Summit Financial Group's annual earnings increase in 2021?
What is the total loan growth for Summit Financial Group in Q4 2021?
What was the net interest income for Summit Financial Group in Q4 2021?