Summit Financial Group Inc. recently reported record second-quarter 2019 net income of $8.56 million, or $0.68 per diluted share, according to a release.
In comparison, earnings for first quarter 2019 were $7.09 million, or $0.56 per diluted share, and for second quarter 2018 were $6.28 million, or $0.51 per diluted share.
For the six months ended June 30, 2019, Summit recorded net income of $15.7 million, or $1.23 per diluted share, compared with $13.7 million, or $1.10 per diluted share, for the comparable 2018 six-month period, representing an increase of 14.1 percent or 11.8 percent per diluted share, the release said.
Both quarterly and six-month 2019 earnings were positively impacted by increased net interest income resulting primarily from loan growth as well as a higher net interest margin, significant realized securities gains, and the previously announced gain on sale of its insurance agency, Summit Insurance Services LLC (“SIS”), in Q2. These results were partly offset by larger write-downs on foreclosed properties in Q2 with the goal of selling such properties more rapidly.
Summit completed its acquisition of Peoples Bankshares Inc. (“PBI”) and its subsidiary, First Peoples Bank, headquartered in Mullens on Jan. 1, 2019, and converted its business processes and accounts to that of Summit’s during Q2 2019; accordingly, PBI’s results of operations are included in Summit’s consolidated results of operations from the date of acquisition.
The release said Summit’s second quarter and six months ended June 30, 2019, period results reflect increased levels of average balances, income and expenses compared to the same periods of 2018. At consummation, PBI had total assets of $133.1 million, loans of $42.4 million, and deposits of $112.9 million. In addition, the merger-related expenses totaled $382,000 in Q2 2019 versus $63,000 in the prior quarter.
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