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Summit Financial Group reports earnings increase

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Summit Financial Group reported increased earnings for both the fourth quarter and the full year of 2012, but the company's leadership is warning of "choppy" times ahead.

Summit, which is based in Moorefield, on Jan. 30 reported fourth quarter earnings of $1.91 million, up from $1.33 million in 2011. For the year, earnings were $4.94 million, up from $3.7 million.

In its earnings release, the company listed several high points of the year, including:

  • Achieving the seventh consecutive quarter of positive quarterly earnings.
  • Nonperforming assets continued to decline, reaching their lowest level since the first quarter of 2011.
  • Noninterest expenses remained under control.
  • The company's leverage capital ratio is at its highest level in six years and its total risk-based capital ratio is at highest level in twelve years.

"Reducing our portfolio of problem assets remains our top priority, and we reduced nonperforming assets in each of the four most recent quarters," H. Charles Maddy III, Summit's president and CEO said in the earnings release.

"However, dispositions of foreclosed properties remain frustratingly slow, particularly with respect to commercial and residential development properties. Further, we anticipate earnings may remain choppy 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."

Summit Financial Group is a $1.39 billion financial holding company that 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, which operates 15 banking locations. Summit also operates Summit Insurance Services LLC in Moorefield and in Leesburg, Va.