Summit Financial Group, Inc. is a financial holding company headquartered in
Moorefield, West Virginia incorporated on March 5, 1987. We provide community
banking services primarily in the Eastern Panhandle and South Central regions
of West Virginia and the Shenandoah Valley and Northern region of Virginia.
We provide these services through our community bank subsidiary, Summit Community
Bank. We also operate Summit Insurance Services, LLC in Moorefield, West Virginia
and Leesburg, Virginia, which provides insurance brokerage services to individuals
and businesses covering corporate and personal property and casualty insurance
products, as well as group health and life insurance products and consulting
services.
We provide a wide range of community banking services, including demand, savings
and time deposits; commercial, real estate and consumer loans; letters of credit;
and cash management services. The deposits of Summit Community are insured by
the Federal Deposit Insurance Corporation ("FDIC").
In order to compete with other financial service providers, we principally
rely upon personal relationships established by our officers, directors and
employees with our clients, and specialized services tailored to meet our clients’
needs. We have maintained a strong community orientation by, among other things,
supporting the active participation of staff members in local charitable, civic,
school, religious and community development activities. We also have a marketing
program that primarily utilizes local radio and newspapers to advertise. Banking,
like most industries, is becoming more dependent on technology as a means of
marketing to customers, including the Internet, which we also utilize. This
approach, coupled with continuity of service by the same staff members, enables
Summit Community to develop long-term customer relationships, maintain high
quality service and respond quickly to customer needs. We believe that our emphasis
on local relationship banking, together with a prudent approach to lending,
are important factors in our success and growth.
All operational and support functions that are transparent to clients are centralized
in order to achieve consistency and cost efficiencies in the delivery of products
and services by each banking office. The central office provides services such
as data processing, deposit operations, accounting, treasury management, loan
administration, loan review, compliance, risk management and internal auditing
to enhance our delivery of quality service. We also provide overall direction
in the areas of credit policy and administration, strategic planning, marketing,
investment portfolio management, human resources administration, and other financial
and administrative services. The banking offices work closely with us to develop
new products and services needed by their customers and to introduce enhancements
to existing products and services.
Our primary lending focus is providing commercial loans to local businesses
with annual sales generally ranging from $300,000 to $30 million and providing
owner-occupied real estate loans to individuals. Typically, our customers have
financing requirements between $50,000 and $5 million. We generally do not seek
loans of more than $10 million but will consider larger lending relationships
exhibiting above-average credit quality. Under our commercial banking strategy,
we focus on offering a broad line of financial products and services to small
and medium-sized businesses through full service banking offices. Summit Community
Bank has senior management with extensive lending experience. These managers
exercise substantial authority over credit and pricing decisions, subject to
loan committee approval for larger credits.
We segment our loan portfolio in to the following major lending categories:
commercial, commercial real estate, construction and development, residential
real estate, and consumer. Commercial loans are loans made to commercial borrowers
that are not secured by real estate. These encompass loans secured by accounts
receivable, inventory, and equipment, as well as unsecured loans. Commercial
real estate loans consist of commercial mortgages, which generally are secured
by nonresidential and multi-family residential properties. Commercial real estate
loans are made to many of the same customers and carry similar industry risks
as the commercial loan portfolio. Construction and development loans are loans
made for the purpose of financing construction or development projects. This
portfolio includes commercial and residential land development loans, one-to-four
family housing construction, both pre-sold and speculative in nature, multi-family
housing construction, non-residential building construction, and undeveloped
land. Residential real estate loans are mortgage loans to consumers and are
secured primarily by a first lien deed of trust. These loans are traditional
one-to-four family residential mortgages. Also included in this category of
loans are second liens on one-to-four family properties, commercial loans secured
by one-to-four family residence, and home equity loans. Consumer loans are loans
that establish consumer credit that is granted for the consumer’s personal
use. These loans include automobile loans and recreational vehicle loans, as
well as personal secured and unsecured loans.
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