Summit Financial Group, Inc. has reported financial results for the third quarter of 2023, highlighting robust core operating performance marked by continued notable strength in its net interest margin. The company’s continued success underscores its position as an exceptional community bank, reflecting a sound strategy and solid operational execution.
The company, which serves commercial and individual clients across West Virginia, the Washington, DC, metropolitan area, Virginia, Kentucky, the Eastern Shore of Maryland and Delaware through Summit Community Bank, Inc., reported net income applicable to common shares of $16.1 million, or $1.09 per diluted share, for the third quarter of 2023, as compared to $7.98 million, or $0.54 per diluted share, for the second quarter of 2023 and $14.2 million, or $1.11 per diluted share, for the third quarter of 2022. Higher earnings in quarter three 2023 were driven primarily by lower provision for credit losses and acquisition-related expenses compared to second quarter 2023 as quarter two included significant acquisition-related expenses attributable to the acquisition of PSB Holding Corp. and its bank subsidiary, Provident State Bank, Inc. (“PSB”) and higher provision for credit losses recorded on purchased non-credit deteriorated (“non-PCD”) loans from PSB and on a nonperforming commercial real estate participation loan.
“We are extremely encouraged by our achievements in the third quarter of 2023, as our strategic initiatives have continued to bear fruit in several critical areas,” stated H. Charles Maddy III, president and chief executive officer of Summit Financial Group. “Our core operational performance was robust, demonstrated by favorable net interest margin and a marked growth in our core deposits, reflecting the strong confidence our customers place in us.”
Maddy continued, “A pivotal highlight of this quarter was the announcement of our merger of peers with Burke & Herbert Financial Services Corp. (Burke & Herbert) headquartered in Alexandria, Virginia, a renowned financial institution located in one of the best banking markets in the United States. This significant step forward is not just a growth strategy but a commitment to expanding our service excellence and community impact. We anticipate this consolidation to be a cornerstone event in our history, positioning us for substantial opportunities in 2024 and beyond.” He concluded, “Looking ahead as we edge closer to the culmination of our two strategic merger with Burke & Herbert, we remain committed to enhancing shareholder value, driven by our foundational strengths and synergistic growth plans. With our dedicated team, resilient strategies and community trust, we are optimistic and geared up for the opportunities and challenges ahead.”
