Summit Financial Group Reports 2010 Second Quarter Results
MOOREFIELD, W.Va., Aug. 6, 2010 (GLOBE NEWSWIRE) -- Summit Financial Group, Inc. ("Company" or "Summit") (Nasdaq:SMMF) today reported a second quarter net loss applicable to common shares of $2.95 million, or ($0.40) per diluted share, compared to a net loss of $3.45 million, or ($0.46) per diluted share for the second quarter of 2009. For the first six months of 2010, the Company recorded a net loss applicable to common shares of $2.91 million, or ($0.39) per diluted share, compared to a net loss of $1.69 million, or ($0.23) per diluted share for the first six-months of 2009.
H. Charles Maddy III, President and Chief Executive Officer of Summit, commented, "We remain disappointed by our operating results. However, there are some signs of improved real estate sales activity in our northern Virginia markets -- albeit valuations remain depressed. This past quarter, we sold $11 million of our problem assets, and we have another $11 million of nonperforming assets under contract which we expect to dispose of during the current quarter. We continue to aggressively manage our nonperforming assets through a combination of asset sales, loan work-outs and charge-offs.
"Our earnings continue to be reduced by higher provisions for loan losses, foregone interest income on nonperforming assets, and expenses associated with the administration and resolution of our problem asset portfolio. We have managed to offset much of the impact through improved efficiencies and a reduction in funding costs. Our portfolio of local deposits has grown significantly over the past year, allowing us to reduce our reliance on short-term borrowings in absolute dollar terms and as a percent of total deposits, enabling us to maintain a reasonably stable net interest margin over the past year."Results from Operations Second quarter 2010 total revenue, consisting of net interest income and noninterest income, was $11.6 million compared to $8.8 million reported for the second quarter of 2009. Net interest income was $9.94 million, down 10.5 percent from the $11.1 million earned in the year-ago quarter; the decline resulted from the combined impact of a lower net interest margin, down eight basis points year over year to 2.92 percent, as well as a 7.7 percent decline in average earnings assets, to $1.41 billion.
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