Announcement • May 15
Summit Financial Group Files Form 15 Summit Financial Group, Inc. has announced that it has filed a Form 15 with the Securities and Exchange Commission to voluntarily deregister its common stock under the Securities Exchange Act of 1934, as amended. The par value of the company's common stock was $2.50 per share. Announcement • May 04
Nasdaq Files with the SEC a Notification of Removal from Listing And/Or Registration on Form 25 to Remove Summit’s Common Stock from Listing on Nasdaq Summit Financial Group, Inc. notified its principal trading market, The Nasdaq Global Select Market (“Nasdaq”) that the Merger would be effective at 12:02 a.m., Eastern Time, on May 3, 2024. On May 3, 2024, Nasdaq filed with the Securities and Exchange Commission (the “SEC”) a Notification of Removal from Listing and/or Registration Under Section 12(b) of the Securities and Exchange Act of 1934, as amended (the “Exchange Act”) on Form 25 to remove Summit’s Common Stock from listing on Nasdaq and withdraw the registration of Summit’s Common Stock under Section 12(b) of the Securities Exchange Act of 1934. Following the effectiveness of such Form 25, Summit intends to file with the SEC certifications on Form 15 under the Exchange Act requesting that the shares of Summit’s Common Stock be deregistered and that Summit’s reporting obligations under Sections 13 and 15(d) of the Exchange Act be suspended. Reported Earnings • Apr 27
First quarter 2024 earnings released: EPS: US$1.15 (vs US$1.09 in 1Q 2023) First quarter 2024 results: EPS: US$1.15 (up from US$1.09 in 1Q 2023). Revenue: US$45.0m (up 21% from 1Q 2023). Net income: US$16.8m (up 21% from 1Q 2023). Profit margin: 37% (in line with 1Q 2023). Revenue is forecast to grow 4.9% p.a. on average during the next 2 years, compared to a 6.0% growth forecast for the Banks industry in the US. Over the last 3 years on average, earnings per share has increased by 9% per year but the company’s share price has only increased by 2% per year, which means it is significantly lagging earnings growth. Reported Earnings • Mar 13
Full year 2023 earnings: Revenues and EPS in line with analyst expectations Full year 2023 results: EPS: US$3.83. Revenue: US$165.2m (up 18% from FY 2022). Net income: US$54.3m (up 3.9% from FY 2022). Profit margin: 33% (down from 37% in FY 2022). The decrease in margin was driven by higher expenses. Net interest margin (NIM): 3.84% (up from 3.73% in FY 2022). Non-performing loans: 0.34% (up from 0.25% in FY 2022). Revenue was in line with analyst estimates. Earnings per share (EPS) were also in line with analyst expectations. Revenue is forecast to grow 6.6% p.a. on average during the next 2 years, compared to a 5.9% growth forecast for the Banks industry in the US. Upcoming Dividend • Mar 07
Upcoming dividend of US$0.22 per share Eligible shareholders must have bought the stock before 14 March 2024. Payment date: 29 March 2024. Trailing yield: 3.3%. Lower than top quartile of American dividend payers (4.7%). In line with average of industry peers (3.0%). Declared Dividend • Feb 28
Fourth quarter dividend of US$0.22 announced Shareholders will receive a dividend of US$0.22. Ex-date: 14th March 2024 Payment date: 29th March 2024 Dividend yield will be 3.3%, which is about the same as the industry average. Sustainability & Growth Dividend is well covered by earnings (22% payout ratio) and is expected to be well covered in 3 years' time (20% forecast payout ratio). The dividend has increased by an average of 12% per year over the past 9 years and payments have been stable during that time. EPS is expected to grow by 4.5% over the next 2 years, which should provide support to the dividend and adequate earnings cover. Announcement • Feb 23
Summit Financial Group, Inc. Declares Dividend for the First Quarter 2024, Payable on March 29, 2024 Summit Financial Group, Inc. announced its Board of Directors recently declared a first quarter 2024 dividend of $0.22 per share payable on March 29, 2024 to common shareholders of record as of the close of business on March 15, 2024. Reported Earnings • Jan 26
Full year 2023 earnings: Revenues and EPS in line with analyst expectations Full year 2023 results: EPS: US$3.83. Revenue: US$165.2m (up 18% from FY 2022). Net income: US$54.3m (up 3.9% from FY 2022). Profit margin: 33% (down from 37% in FY 2022). The decrease in margin was driven by higher expenses. Net interest margin (NIM): 3.84% (up from 3.73% in FY 2022). Revenue was in line with analyst estimates. Earnings per share (EPS) were also in line with analyst expectations. Revenue is forecast to grow 8.4% p.a. on average during the next 2 years, compared to a 5.5% growth forecast for the Banks industry in the US. Announcement • Dec 08
Summit Financial Group, Inc. Announces Resignation of John H. Shott as Member of the Board of Director Summit Financial Group, Inc. announced on December 4, 2023, John H. Shott notified the Chairman of the Board of Directors of the company that he voluntarily resigned his position as a member of the Board of Directors (the “ Board”) of the Company effective as of the end of the day on December 6, 2023, the date on which the shareholders of the Company approved the Agreement and Plan of Reorganization and accompanying Plan of Merger (the “Merger Agreement”), dated as of August 24, 2023, by and between Burke & Herbert Financial Services Corp. (“Burke & Herbert”) and the Company. In connection with his decision, Mr. Shott advised that his resignation was not due to a disagreement with the Company on any matter relating to the Company’s operations, policies or practices. Upcoming Dividend • Dec 07
Upcoming dividend of US$0.22 per share at 3.5% yield Eligible shareholders must have bought the stock before 14 December 2023. Payment date: 29 December 2023. Payout ratio is a comfortable 21% and this is well supported by cash flows. Trailing yield: 3.5%. Lower than top quartile of American dividend payers (4.8%). In line with average of industry peers (3.5%). Announcement • Nov 29
Summit Financial Group, Inc. Declares Dividend for the Fourth Quarter of 2023, Payable on December 29, 2023 Summit Financial Group, Inc. announced its Board of Directors declared a fourth quarter 2023 dividend of $0.22 per share payable on December 29, 2023 to common shareholders of record as of the close of business on December 15, 2023. Price Target Changed • Oct 31
Price target decreased by 8.0% to US$23.00 Down from US$25.00, the current price target is provided by 1 analyst. New target price is 7.0% above last closing price of US$21.50. The company is forecast to post earnings per share of US$3.82 for next year compared to US$4.10 last year. Reported Earnings • Oct 29
Third quarter 2023 earnings: EPS exceeds analyst expectations while revenues lag behind Third quarter 2023 results: EPS: US$1.10. Revenue: US$45.3m (up 21% from 3Q 2022). Net income: US$16.1m (up 13% from 3Q 2022). Profit margin: 36% (down from 38% in 3Q 2022). The decrease in margin was driven by higher expenses. Revenue missed analyst estimates by 1.9%. Earnings per share (EPS) exceeded analyst estimates by 5.8%. Revenue is forecast to grow 5.9% p.a. on average during the next 3 years, compared to a 4.3% growth forecast for the Banks industry in the US. Announcement • Oct 28
Summit Financial Group, Inc. Reports Impairment Charges for the Third Quarter Ended September 30, 2023 Summit Financial Group, Inc. reported impairment charges for the third quarter ended September 30, 2023. For the period, the company announced net loan charge-offs of $118,000 against $8,000 a year ago. Recent Insider Transactions • Sep 15
Independent Director recently bought US$343k worth of stock On the 14th of September, Gary Hinkle bought around 14k shares on-market at roughly US$24.17 per share. This transaction amounted to 2.8% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. Insiders have collectively bought US$1.0m more in shares than they have sold in the last 12 months. Announcement • Sep 12
Summit Financial Group, Inc. Announces Resignation of John W. Crites, as A Member of the Board of Directors Summit Financial Group, Inc. announced that John W. Crites, II voluntarily resigned his position as a member of the Board of Directors effective September 8, 2023. In connection with his decision, Mr. Crites advised that he had no disagreements with the Company. The Board expresses its gratitude to Mr. Crites for his many years of service to the Company and substantial contributions to the Board. Upcoming Dividend • Sep 07
Upcoming dividend of US$0.22 per share at 3.6% yield Eligible shareholders must have bought the stock before 14 September 2023. Payment date: 29 September 2023. Payout ratio is a comfortable 21% and this is well supported by cash flows. Trailing yield: 3.6%. Lower than top quartile of American dividend payers (4.9%). In line with average of industry peers (3.7%). New Risk • Aug 30
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 19% per year for the foreseeable future. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are expected to decline, then in most cases the share price will decline over time as well. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risk Earnings are forecast to decline by an average of 19% per year for the foreseeable future. Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Shareholders have been diluted in the past year (15% increase in shares outstanding). Price Target Changed • Jul 31
Price target increased by 16% to US$25.00 Up from US$21.50, the current price target is provided by 1 analyst. New target price is 11% above last closing price of US$22.56. Stock is down 25% over the past year. The company is forecast to post earnings per share of US$3.67 for next year compared to US$4.10 last year. New Risk • Jul 28
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 15% This is considered a minor risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Shareholders have been diluted in the past year (15% increase in shares outstanding). Reported Earnings • Jul 28
Second quarter 2023 earnings: EPS and revenues exceed analyst expectations Second quarter 2023 results: EPS: US$0.54 (down from US$0.92 in 2Q 2022). Revenue: US$37.7m (up 15% from 2Q 2022). Net income: US$7.98m (down 32% from 2Q 2022). Profit margin: 21% (down from 36% in 2Q 2022). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 6.2%. Earnings per share (EPS) also surpassed analyst estimates by 3.8%. Revenue is forecast to grow 12% p.a. on average during the next 2 years, compared to a 4.4% growth forecast for the Banks industry in the US. Over the last 3 years on average, earnings per share has increased by 21% per year but the company’s share price has only increased by 14% per year, which means it is significantly lagging earnings growth. Announcement • Jul 28
Summit Financial Group, Inc. Reports Net Loan Charge-Offs for the Second Quarter Ended June 30, 2023 Summit Financial Group, Inc. reported net loan charge-offs for the second quarter ended June 30, 2023. For the quarter, the company reported net loan charge-offs of $3.828 million against $0.159 million a year ago. Upcoming Dividend • Jun 07
Upcoming dividend of US$0.20 per share at 3.8% yield Eligible shareholders must have bought the stock before 14 June 2023. Payment date: 30 June 2023. Payout ratio is a comfortable 18% and this is well supported by cash flows. Trailing yield: 3.8%. Lower than top quartile of American dividend payers (5.1%). In line with average of industry peers (3.7%). Announcement • May 26
Summit Financial Group, Inc. Declares Dividend for the Second Quarter 2023, Payable on June 30, 2023 Summit Financial Group, Inc. announced its Board of Directors recently declared a second quarter 2023 dividend of $0.20 per share payable on June 30, 2023 to common shareholders of record as of the close of business on June 15, 2023. Recent Insider Transactions • May 02
Executive VP & Chief Risk Officer recently bought US$59k worth of stock On the 1st of May, Joseph Hager bought around 3k shares on-market at roughly US$19.62 per share. This transaction increased Joseph's direct individual holding by 1x at the time of the trade. In the last 3 months, there was an even bigger purchase from another insider worth US$199k. Insiders have collectively bought US$626k more in shares than they have sold in the last 12 months. Price Target Changed • Apr 10
Price target decreased by 29% to US$22.00 Down from US$31.00, the current price target is provided by 1 analyst. New target price is 11% above last closing price of US$19.81. Stock is down 20% over the past year. The company is forecast to post earnings per share of US$3.68 for next year compared to US$4.10 last year. Recent Insider Transactions • Mar 19
Independent Director recently bought US$199k worth of stock On the 13th of March, Jason Kitzmiller bought around 9k shares on-market at roughly US$21.75 per share. This transaction amounted to 68% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. Insiders have collectively bought US$556k more in shares than they have sold in the last 12 months. Reported Earnings • Mar 15
Full year 2022 earnings: Revenues and EPS in line with analyst expectations Full year 2022 results: EPS: US$4.10 (up from US$3.49 in FY 2021). Revenue: US$140.2m (up 11% from FY 2021). Net income: US$52.3m (up 16% from FY 2021). Profit margin: 37% (up from 36% in FY 2021). The increase in margin was driven by higher revenue. Net interest margin (NIM): 3.73% (up from 3.54% in FY 2021). Non-performing loans: 0.25% (down from 0.46% in FY 2021). Revenue was in line with analyst estimates. Earnings per share (EPS) were also in line with analyst expectations. Revenue is forecast to grow 16% p.a. on average during the next 2 years, compared to a 6.4% growth forecast for the Banks industry in the US. Over the last 3 years on average, earnings per share has increased by 21% per year but the company’s share price has only increased by 12% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Mar 13
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to US$21.20, the stock trades at a forward P/E ratio of 6x. Average forward P/E is 9x in the Banks industry in the US. Total returns to shareholders of 34% over the past three years. Upcoming Dividend • Mar 07
Upcoming dividend of US$0.20 per share at 3.2% yield Eligible shareholders must have bought the stock before 14 March 2023. Payment date: 31 March 2023. Trailing yield: 3.2%. Lower than top quartile of American dividend payers (4.3%). In line with average of industry peers (3.0%). Announcement • Jan 28
Summit Financial Group, Inc. Reports Unaudited Net Charge-Offs for the Fourth Quarter Ended December 31, 2022 Summit Financial Group, Inc. reported unaudited net charge-offs for the fourth quarter ended December 31, 2022. For the quarter, the company reported net loan charge-offs of $1,000 against $193,000 same period a year ago. Reported Earnings • Jan 26
Full year 2022 earnings: Revenues and EPS in line with analyst expectations Full year 2022 results: EPS: US$4.10 (up from US$3.49 in FY 2021). Revenue: US$140.2m (up 11% from FY 2021). Net income: US$52.3m (up 16% from FY 2021). Profit margin: 37% (up from 36% in FY 2021). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) were also in line with analyst expectations. Revenue is forecast to grow 16% p.a. on average during the next 2 years, compared to a 6.2% growth forecast for the Banks industry in the US. Over the last 3 years on average, earnings per share has increased by 21% per year but the company’s share price has fallen by 1% per year, which means it is significantly lagging earnings. Announcement • Dec 14
Summit Financial Group, Inc. (NasdaqGS:SMMF) signed a definitive merger agreement to acquire PSB Holding Corp. (OTCPK:PSBP) for $51 million. Summit Financial Group, Inc. (NasdaqGS:SMMF) signed a definitive merger agreement to acquire PSB Holding Corp. (OTCPK:PSBP) for $51 million on December 9, 2022. As per the terms of the transaction, PSB shareholders will receive 1.2347 shares of Summit common stock for each outstanding share of PSB common stock. In addition, each outstanding option to purchase shares of PSB Common Stock (“PSB Option”) will be entitled to receive cash in an amount equal to the product obtained by multiplying (i) the difference between (a) $35.00 and (b) the exercise price for each outstanding PSB Option by (ii) the number of shares of PSB Common Stock subject to such PSB Option. Following consummation of the merger, PSB’s bank subsidiary, Provident State Bank, Inc., will be merged with Summit’s bank subsidiary, Summit Community Bank, Inc. PSB shall pay a termination fee of $2.2 million to Summit. The transaction has been approved by each company’s board of directors and is pending regulatory approvals, authorization for listing on the NASDAQ of the shares of Summit Common Stock to be issued in the Merger, effectiveness of the registration statement on Form S-4 and the approval of PSB’s shareholders. The transaction is expected to close in the second quarter of 2023. PSB was advised by the investment banking firm of Piper Sandler & Co., and was represented by the law firm of Kevin M. Houlihan of Holland & Knight LLP. Summit was represented by the law firm of Sandra M. Murphy of Bowles Rice LLP. Upcoming Dividend • Dec 07
Upcoming dividend of US$0.20 per share Eligible shareholders must have bought the stock before 14 December 2022. Payment date: 30 December 2022. Payout ratio is a comfortable 19% and this is well supported by cash flows. Trailing yield: 2.9%. Lower than top quartile of American dividend payers (4.3%). In line with average of industry peers (3.1%). Announcement • Nov 18
Summit Financial Group, Inc. Declares Dividend for Fourth Quarter 2022, Payable on December 30, 2022 Summit Financial Group, Inc. announced its Board of Directors declared a fourth quarter 2022 dividend of $0.20 per share payable on December 30, 2022 to common shareholders of record as of the close of business on December 15, 2022. Announcement • Oct 28
Summit Financial Group, Inc. Reports Net Loan Charge-Offs for the Third Quarter Ended September 30, 2022 Summit Financial Group, Inc. reported Net loan charge-offs for the third quarter ended September 30, 2022. For the quarter, the company reported Net loan charge-offs of $8,000 against $370,000 a year ago. Reported Earnings • Oct 27
Third quarter 2022 earnings released: EPS: US$1.11 (vs US$0.93 in 3Q 2021) Third quarter 2022 results: EPS: US$1.11 (up from US$0.93 in 3Q 2021). Revenue: US$37.5m (up 15% from 3Q 2021). Net income: US$14.2m (up 18% from 3Q 2021). Profit margin: 38% (up from 37% in 3Q 2021). The increase in margin was driven by higher revenue. Revenue is forecast to grow 7.5% p.a. on average during the next 3 years, compared to a 6.3% growth forecast for the Banks industry in the US. Over the last 3 years on average, earnings per share has increased by 19% per year but the company’s share price has only increased by 4% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Sep 07
Upcoming dividend of US$0.20 per share Eligible shareholders must have bought the stock before 14 September 2022. Payment date: 30 September 2022. Payout ratio is a comfortable 19% and this is well supported by cash flows. Trailing yield: 2.8%. Lower than top quartile of American dividend payers (4.3%). Lower than average of industry peers (3.2%). Announcement • Aug 26
Summit Financial Group, Inc. Increases Quarterly Dividend for the Third Quarter of 2022, Payable on September 30, 2022 Summit Financial Group, Inc. announced its Board of Directors declared a third quarter of 2022 dividend of $0.20 per share payable on September 30, 2022 to common shareholders of record as of the close of business on September 15, 2022, representing an 11% increase compared to the $0.18 paid in the second quarter of 2022. Announcement • Jul 29
Summit Financial Group, Inc. Announces Net Loan Charge Offs for the Quarter Ended June 30, 2022 Summit Financial Group, Inc. announced net loan charge offs for the quarter ended June 30, 2022. for the quarter, the company reported net loan charge offs of $159,000 as compared to $202,000 a year ago. Reported Earnings • Jul 28
Second quarter 2022 earnings: EPS and revenues miss analyst expectations Second quarter 2022 results: EPS: US$0.92 (up from US$0.81 in 2Q 2021). Revenue: US$32.8m (up 7.5% from 2Q 2021). Net income: US$11.8m (up 13% from 2Q 2021). Profit margin: 36% (up from 34% in 2Q 2021). The increase in margin was driven by higher revenue. Revenue missed analyst estimates by 2.2%. Earnings per share (EPS) also missed analyst estimates by 4.2%. Over the next year, revenue is forecast to grow 14%, compared to a 15% growth forecast for the industry in the US. Over the last 3 years on average, earnings per share has increased by 18% per year but the company’s share price has only increased by 5% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Jun 07
Upcoming dividend of US$0.18 per share Eligible shareholders must have bought the stock before 14 June 2022. Payment date: 30 June 2022. Payout ratio is a comfortable 20% and this is well supported by cash flows. Trailing yield: 2.6%. Lower than top quartile of American dividend payers (3.9%). Lower than average of industry peers (2.9%). Announcement • Jun 01
Summit Financial Group, Inc. Declares Second Quarter 2022 Dividend, Payable on June 30, 2022 Summit Financial Group, Inc. announces its Board of Directors recently declared a second quarter 2022 dividend of $0.18 per share payable on June 30, 2022 to common shareholders of record as of the close of business on June 15, 2022. Major Estimate Revision • May 05
Consensus EPS estimates increase by 12% The consensus outlook for earnings per share (EPS) in 2022 has improved. 2022 revenue forecast increased from US$126.3m to US$134.4m. EPS estimate increased from US$3.49 to US$3.90 per share. Net income forecast to grow 8.5% next year vs 2.6% growth forecast for Banks industry in the US. Consensus price target up from US$30.00 to US$31.50. Share price was steady at US$26.97 over the past week. Reported Earnings • Apr 29
First quarter 2022 earnings: EPS and revenues exceed analyst expectations First quarter 2022 results: EPS: US$0.90 (up from US$0.80 in 1Q 2021). Revenue: US$32.1m (up 8.2% from 1Q 2021). Net income: US$11.5m (up 11% from 1Q 2021). Profit margin: 36% (in line with 1Q 2021). Revenue exceeded analyst estimates by 11%. Earnings per share (EPS) also surpassed analyst estimates by 5.3%. Over the next year, revenue is forecast to grow 5.8%, compared to a 11% growth forecast for the industry in the US. Over the last 3 years on average, earnings per share has increased by 16% per year but the company’s share price has only increased by 1% per year, which means it is significantly lagging earnings growth. Announcement • Apr 12
Summit Financial Group, Inc., Annual General Meeting, May 19, 2022 Summit Financial Group, Inc., Annual General Meeting, May 19, 2022, at 13:00 US Eastern Standard Time. Agenda: To consider election of directors; to adopt a non-binding resolution to approve the compensation of the company's named executive officers; to consider ratification of auditor; and to consider other matters. Upcoming Dividend • Mar 07
Upcoming dividend of US$0.18 per share Eligible shareholders must have bought the stock before 14 March 2022. Payment date: 31 March 2022. Payout ratio is a comfortable 20% and this is well supported by cash flows. Trailing yield: 2.8%. Lower than top quartile of American dividend payers (3.6%). Higher than average of industry peers (2.5%). Reported Earnings • Mar 06
Full year 2021 earnings: EPS exceeds analyst expectations Full year 2021 results: EPS: US$3.49 (up from US$2.42 in FY 2020). Revenue: US$126.1m (up 25% from FY 2020). Net income: US$45.1m (up 44% from FY 2020). Profit margin: 36% (up from 31% in FY 2020). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 2.2%. Over the next year, revenue is forecast to grow 7.1%, compared to a 6.0% growth forecast for the banks industry in the US. Over the last 3 years on average, earnings per share has increased by 14% per year but the company’s share price has only increased by 2% per year, which means it is significantly lagging earnings growth. Announcement • Feb 26
Summit Financial Group, Inc. Declares First Quarter 2022 Dividend, Payable on March 31, 2022 Summit Financial Group, Inc. announced its Board of Directors recently declared a first quarter 2022 dividend of $0.18 per share payable on March 31, 2022 to common shareholders of record as of the close of business on March 15, 2022. Major Estimate Revision • Feb 03
Consensus EPS estimates increase by 16% The consensus outlook for earnings per share (EPS) in 2022 has improved. 2022 revenue forecast increased from US$129.3m to US$135.1m. EPS estimate increased from US$2.91 to US$3.39 per share. Net income forecast to shrink 3.4% next year vs 7.1% decline forecast for Banks industry in the US. Consensus price target up from US$28.50 to US$31.00. Share price was steady at US$27.54 over the past week. Price Target Changed • Jan 30
Price target increased to US$29.50 Up from US$27.00, the current price target is an average from 2 analysts. New target price is 7.5% above last closing price of US$27.45. Stock is up 33% over the past year. The company is forecast to post earnings per share of US$3.57 for next year compared to US$3.49 last year. Reported Earnings • Jan 29
Full year 2021 earnings: EPS exceeds analyst expectations Full year 2021 results: EPS: US$3.49 (up from US$2.42 in FY 2020). Revenue: US$126.1m (up 25% from FY 2020). Net income: US$45.1m (up 44% from FY 2020). Profit margin: 36% (up from 31% in FY 2020). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 2.2%. Over the next year, revenue is forecast to grow 2.5%, compared to a 4.1% growth forecast for the banks industry in the US. Over the last 3 years on average, earnings per share has increased by 14% per year but the company’s share price has only increased by 5% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Dec 07
Upcoming dividend of US$0.18 per share Eligible shareholders must have bought the stock before 14 December 2021. Payment date: 31 December 2021. Payout ratio is a comfortable 21% and this is well supported by cash flows. Trailing yield: 2.7%. Lower than top quartile of American dividend payers (3.6%). Higher than average of industry peers (2.3%). Reported Earnings • Oct 30
Third quarter 2021 earnings released The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2021 results: Revenue: US$32.7m (up 18% from 3Q 2020). Net income: US$12.1m (up 26% from 3Q 2020). Profit margin: 37% (up from 35% in 3Q 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 11% per year whereas the company’s share price has increased by 6% per year. Recent Insider Transactions Derivative • Sep 21
Insider exercised options to buy US$94k worth of stock. On the 16th of September, Bradford Ritchie exercised options to buy 4k shares at a strike price of around US$24.09, costing a total of US$96k. This transaction amounted to 17% of their direct individual holding at the time of the trade. Since March 2021, Bradford's direct individual holding has increased from 23.34k shares to 27.82k. Company insiders have collectively bought US$315k more than they sold, via options and on-market transactions, in the last 12 months. Reported Earnings • Jul 30
Second quarter 2021 earnings released: EPS US$0.81 (vs US$0.54 in 2Q 2020) The company reported a strong second quarter result with improved earnings, revenues and profit margins. Second quarter 2021 results: Revenue: US$30.5m (up 29% from 2Q 2020). Net income: US$10.4m (up 50% from 2Q 2020). Profit margin: 34% (up from 29% in 2Q 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 12% per year but the company’s share price has fallen by 3% per year, which means it is significantly lagging earnings. Upcoming Dividend • Jun 08
Upcoming dividend of US$0.17 per share Eligible shareholders must have bought the stock before 14 June 2021. Payment date: 30 June 2021. Trailing yield: 2.9%. Lower than top quartile of American dividend payers (3.4%). Higher than average of industry peers (2.1%). Announcement • May 29
Summit Financial Group, Inc. Declares a Second Quarter 2021 Dividend Payable on June 30, 2021 Summit Financial Group, Inc. announced its Board of Directors declared a second quarter 2021 dividend of $0.17 per share payable on June 30, 2021 to common shareholders of record as of the close of business on June 15, 2021. Reported Earnings • Apr 24
First quarter 2021 earnings released: EPS US$0.80 (vs US$0.35 in 1Q 2020) The company reported a strong first quarter result with improved earnings, revenues and profit margins. First quarter 2021 results: Revenue: US$29.7m (up 44% from 1Q 2020). Net income: US$10.4m (up 130% from 1Q 2020). Profit margin: 35% (up from 22% in 1Q 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 12% per year but the company’s share price has remained flat, which means it is significantly lagging earnings. Reported Earnings • Mar 13
Full year 2020 earnings released: EPS US$2.42 (vs US$2.55 in FY 2019) The company reported a soft full year result with weaker earnings and profit margins, although revenues improved. Full year 2020 results: Revenue: US$101.1m (up 8.9% from FY 2019). Net income: US$31.3m (down 1.7% from FY 2019). Profit margin: 31% (down from 34% in FY 2019). The decrease in margin was driven by higher expenses. Net interest margin (NIM): 3.71% (up from 3.66% in FY 2019). Non-performing loans: 0.84% (up from 0.60% in FY 2019). Over the last 3 years on average, earnings per share has increased by 16% per year but the company’s share price has only increased by 2% per year, which means it is significantly lagging earnings growth. Analyst Estimate Surprise Post Earnings • Mar 13
Revenue and earnings beat expectations Revenue exceeded analyst estimates by 1.5%. Earnings per share (EPS) also surpassed analyst estimates by 15%. Over the next year, revenue is forecast to grow 23%, compared to a 18% growth forecast for the Banks industry in the US. Is New 90 Day High Low • Feb 27
New 90-day high: US$24.09 The company is up 11% from its price of US$21.70 on 27 November 2020. The American market is up 3.0% over the last 90 days, indicating the company outperformed over that time. However, it underperformed the Banks industry, which is up 26% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is US$46.61 per share. Major Estimate Revision • Feb 09
Analysts increase EPS estimates to US$2.94 The 2021 consensus revenue estimate increased from US$118.2m to US$124.3m. The earnings per share estimate also received an upgrade from US$2.37 to US$2.94 for the same period. Net income is expected to grow by 21% next year compared to 14% growth forecast for the Banks industry in the US. The consensus price target was lowered from US$24.50 to US$22.75. Share price is up 12% to US$23.38 over the past week. Price Target Changed • Feb 03
Price target lowered to US$22.75 Down from US$24.50, the current price target is an average from 2 analysts. The new target price is close to the current share price of US$21.79. As of last close, the stock is down 16% over the past year. Reported Earnings • Feb 02
Full year 2020 earnings released: EPS US$2.42 (vs US$2.55 in FY 2019) The company reported a soft full year result with weaker earnings and profit margins, although revenues improved. Full year 2020 results: Revenue: US$101.1m (up 8.9% from FY 2019). Net income: US$31.3m (down 1.7% from FY 2019). Profit margin: 31% (down from 34% in FY 2019). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 16% per year but the company’s share price has fallen by 4% per year, which means it is significantly lagging earnings. Analyst Estimate Surprise Post Earnings • Feb 02
Revenue and earnings beat expectations Revenue exceeded analyst estimates by 1.5%. Earnings per share (EPS) also surpassed analyst estimates by 15%. Over the next year, revenue is forecast to grow 17%, compared to a 17% growth forecast for the Banks industry in the US. Is New 90 Day High Low • Jan 07
New 90-day high: US$23.51 The company is up 37% from its price of US$17.16 on 08 October 2020. The American market is up 12% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Banks industry, which is up 26% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is US$46.93 per share. Is New 90 Day High Low • Dec 16
New 90-day high: US$22.50 The company is up 43% from its price of US$15.73 on 16 September 2020. The American market is up 12% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Banks industry, which is up 23% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is US$44.85 per share. Recent Insider Transactions • Dec 06
Independent Director recently bought US$105k worth of stock On the 2nd of December, Gary Hinkle bought around 5k shares on-market at roughly US$21.17 per share. This was the largest purchase by an insider in the last 3 months. Insiders have collectively bought US$213k more in shares than they have sold in the last 12 months. Valuation Update With 7 Day Price Move • Nov 14
Market bids up stock over the past week After last week's 15% share price gain to US$20.04, the stock is trading at a trailing P/E ratio of 8.8x, up from the previous P/E ratio of 7.6x. This compares to an average P/E of 11x in the Banks industry in the US. Total return to shareholders over the past three years is a loss of 18%. Is New 90 Day High Low • Nov 10
New 90-day high: US$19.60 The company is up 20% from its price of US$16.40 on 12 August 2020. The American market is up 7.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Banks industry, which is up 9.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is US$40.18 per share. Reported Earnings • Nov 09
Third quarter 2020 earnings released: EPS US$0.74 The company reported a solid third quarter result with improved earnings and revenues, although profit margins were weaker. Third quarter 2020 results: Revenue: US$27.7m (up 22% from 3Q 2019). Net income: US$9.62m (up 19% from 3Q 2019). Profit margin: 35% (down from 36% in 3Q 2019). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 20% per year but the company’s share price has fallen by 12% per year, which means it is significantly lagging earnings. Analyst Estimate Surprise Post Earnings • Nov 09
Revenue and earnings beat expectations Revenue exceeded analyst estimates by 13%. Earnings per share (EPS) also surpassed analyst estimates by 124%. Over the next year, revenue is forecast to grow 25%, compared to a 18% growth forecast for the Banks industry in the US.