NasdaqCM:SMMF

Stock Analysis Report

Summit Financial Group

Executive Summary

Summit Financial Group, Inc. operates as a financial holding company for Summit Community Bank, Inc.

Snowflake

Fundamentals

Excellent balance sheet with proven track record and pays a dividend.


Similar Companies

Share Price & News

How has Summit Financial Group's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

1.1%

SMMF

2.9%

US Banks

0.07%

US Market


1 Year Return

21.4%

SMMF

8.6%

US Banks

8.9%

US Market

Return vs Industry: SMMF exceeded the US Banks industry which returned 8.6% over the past year.

Return vs Market: SMMF exceeded the US Market which returned 8.9% over the past year.


Shareholder returns

SMMFIndustryMarket
7 Day1.1%2.9%0.07%
30 Day-3.8%3.4%-0.3%
90 Day1.0%2.1%-1.6%
1 Year24.3%21.4%11.8%8.6%11.3%8.9%
3 Year37.9%29.6%54.8%44.1%46.3%36.8%
5 Year186.9%157.7%70.2%51.6%62.1%44.3%

Price Volatility Vs. Market

How volatile is Summit Financial Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Summit Financial Group undervalued compared to its fair value and its price relative to the market?

10.9x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SMMF ($26.16) is trading above our estimate of fair value ($20.89)

Significantly Below Fair Value: SMMF is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: SMMF is good value based on its PE Ratio (10.9x) compared to the Banks industry average (12.6x).

PE vs Market: SMMF is good value based on its PE Ratio (10.9x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: SMMF's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: SMMF is overvalued based on its PB Ratio (1.4x) compared to the US Banks industry average (1.2x).


Next Steps

Future Growth

How is Summit Financial Group forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

-1.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SMMF's earnings are forecast to decline over the next 3 years (-1.9% per year).

Earnings vs Market: SMMF's earnings are forecast to decline over the next 3 years (-1.9% per year).

High Growth Earnings: SMMF's earnings are forecast to decline over the next 3 years.

Revenue vs Market: SMMF's revenue (4.1% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: SMMF's revenue (4.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SMMF's Return on Equity is forecast to be low in 3 years time (10.9%).


Next Steps

Past Performance

How has Summit Financial Group performed over the past 5 years?

19.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: SMMF's earnings have grown by 19% per year over the past 5 years.

Accelerating Growth: SMMF's earnings growth over the past year (36.5%) exceeds its 5-year average (19% per year).

Earnings vs Industry: SMMF earnings growth over the past year (36.5%) exceeded the Banks industry 29.7%.


Return on Equity

High ROE: SMMF's Return on Equity (12.7%) is considered low.


Return on Assets

ROA vs Industry: SMMF has a higher Return on Assets than the Banks industry average last year.


Return on Capital Employed

ROCE Improving: Insufficient data to calculate SMMF's Return on Capital Employed to determine if it has improved over the past 3 years.


Next Steps

Financial Health

How is Summit Financial Group's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: SMMF has a low level of unsold assets or inventory.

Debt Coverage by Assets: SMMF's debt is not covered by short term assets (assets are 0.4x debt).


Financial Institutions Analysis

Asset Level: SMMF's level of assets compared to its equity is low.

Allowance for Bad Loans: SMMF has a low allowance for bad loans.

Low Risk Liabilities: SMMF's liabilities are made up of primarily low risk sources of funding.

Loan Level: SMMF has an acceptable proportion of non-loan assets held.

Low Risk Deposits: SMMF's loans are broadly funded by customer deposits.

Level of Bad Loans: SMMF has an appropriate level of bad loans (0.74%)


Next Steps

Dividend

What is Summit Financial Group's current dividend yield, its reliability and sustainability?

2.29%

Current Dividend Yield


Dividend Yield vs Market

company2.3%marketbottom25%1.4%markettop25%3.7%industryaverage2.9%forecastin3Years2.3%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: SMMF's dividend (2.29%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: SMMF's dividend (2.29%) is low compared to the top 25% of dividend payers in the US market (3.68%).

Stable Dividend: SMMF's dividend payments have been volatile in the past 10 years.

Growing Dividend: SMMF's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (23.3%), SMMF's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SMMF's dividends in 3 years are forecast to be well covered by earnings (27% payout ratio).


Next Steps

Management

What is the CEO of Summit Financial Group's salary, the management and board of directors tenure and is there insider trading?

20.4yrs

Average management tenure


CEO

Charlie Maddy (56yo)

25.8yrs

Tenure

US$1,309,907

Compensation

Mr. H. Charles Maddy, III, also known as Charlie has been the President and Chief Executive Officer of Summit Financial Group Inc. ("Group") since 1994. Mr. Maddy has been Chief Executive Officer of Summit ...


CEO Compensation Analysis

Compensation vs. Market: Charlie's total compensation ($USD1.31M) is about average for companies of similar size in the US market ($USD1.81M).

Compensation vs Earnings: Charlie's compensation has increased by more than 20% in the past year.


Management Age and Tenure

20.4yrs

Average Tenure

56yo

Average Age

Experienced Management: SMMF's management team is seasoned and experienced (20.4 years average tenure).


Board Age and Tenure

20.7yrs

Average Tenure

67yo

Average Age

Experienced Board: SMMF's board of directors are seasoned and experienced ( 20.7 years average tenure).


Insider Trading

Insider Buying: SMMF insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

SellUS$200,00020 Sep 19
Dewey Bensenhaver
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares8,000
Max PriceUS$25.00
BuyUS$200,00020 Sep 19
Gary Hinkle
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares8,000
Max PriceUS$25.00
SellUS$26,00014 Aug 19
Oscar Bean
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares1,000
Max PriceUS$26.00
SellUS$232,03231 Jul 19
H. Maddy
EntityIndividual
Role
Chief Executive Officer
Vice Chairman
Shares8,561
Max PriceUS$27.10
BuyUS$102,20021 Jun 19
Jason Kitzmiller
EntityIndividual
Shares4,088
Max PriceUS$25.00
SellUS$102,20021 Jun 19
James Geary
EntityIndividual
Shares4,088
Max PriceUS$25.00
SellUS$52,76523 May 19
Patrick Frye
EntityIndividual
Shares2,060
Max PriceUS$25.61
SellUS$38,55023 May 19
Julie Markwood
EntityIndividual
Role
Chief Accounting Officer
Senior VP & Chief Accounting Officer
Shares1,500
Max PriceUS$25.70
SellUS$142,38817 May 19
Patrick Frye
EntityIndividual
Shares5,559
Max PriceUS$25.62
SellUS$25,05907 Mar 19
Dewey Bensenhaver
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,027
Max PriceUS$24.40
SellUS$24,89425 Feb 19
Dewey Bensenhaver
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,039
Max PriceUS$23.96
SellUS$54,09505 Feb 19
Duke McDaniel
EntityIndividual
Shares2,296
Max PriceUS$23.56
BuyUS$17,81904 Feb 19
Gary Hinkle
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares744
Max PriceUS$23.95
BuyUS$21,00006 Dec 18
Gary Hinkle
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,000
Max PriceUS$21.00

Ownership Breakdown


Management Team

  • Charlie Maddy (56yo)

    Vice Chairman

    • Tenure: 25.8yrs
    • Compensation: US$1.31m
  • Robert Tissue (56yo)

    Executive VP & CFO

    • Tenure: 21.8yrs
    • Compensation: US$427.05k
  • Scott Jennings (58yo)

    Senior VP & COO

    • Tenure: 19yrs
    • Compensation: US$434.29k
  • Julie Markwood

    Senior VP & Chief Accounting Officer

    • Tenure: 0yrs
  • Brad Ritchie (51yo)

    Senior VP & President of Summit Community Bank

    • Tenure: 7.8yrs
    • Compensation: US$404.24k
  • Teresa Ely

    Executive Assistant to President & CEO and Director of Shareholder Relations

    • Tenure: 0yrs
  • Patty Owens

    Chief Banking Officer

    • Tenure: 0yrs
  • Danyl Freeman (49yo)

    VP & Chief Human Resources Officer

    • Tenure: 0yrs

Board Members

  • Oscar Bean (69yo)

    Chairman of the Board

    • Tenure: 24.8yrs
    • Compensation: US$69.61k
  • Charlie Maddy (56yo)

    Vice Chairman

    • Tenure: 25.8yrs
    • Compensation: US$1.31m
  • Dewey Bensenhaver (72yo)

    Independent Director

    • Tenure: 19.7yrs
    • Compensation: US$15.95k
  • James Cookman (65yo)

    Independent Director

    • Tenure: 25.8yrs
    • Compensation: US$14.00k
  • Thomas Hawse (74yo)

    Independent Director

    • Tenure: 31.8yrs
    • Compensation: US$18.75k
  • Gary Hinkle (69yo)

    Independent Director

    • Tenure: 26.8yrs
    • Compensation: US$19.95k
  • Gerald Huffman (74yo)

    Independent Director

    • Tenure: 19.7yrs
    • Compensation: US$17.30k
  • Charles Piccirillo (64yo)

    Independent Director

    • Tenure: 21.8yrs
    • Compensation: US$18.55k
  • Jay Geary (63yo)

    Independent Director

    • Tenure: 12.4yrs
    • Compensation: US$17.35k
  • John Gianola (65yo)

    Independent Director

    • Tenure: 2.8yrs
    • Compensation: US$19.85k

Company Information

Summit Financial Group, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Summit Financial Group, Inc.
  • Ticker: SMMF
  • Exchange: NasdaqCM
  • Founded: 1987
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$326.217m
  • Shares outstanding: 12.47m
  • Website: https://www.summitfgi.com

Number of Employees


Location

  • Summit Financial Group, Inc.
  • 300 North Main Street
  • Moorefield
  • West Virginia
  • 26836
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SMMFNasdaqCM (Nasdaq Capital Market)YesCommon StockUSUSDJan 1999

Biography

Summit Financial Group, Inc. operates as a financial holding company for Summit Community Bank, Inc. that provides community banking and other financial services to individuals and businesses primarily in  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 23:40
End of Day Share Price2019/10/22 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.