Regulatory Compliance - The company is required to file annual reports on Form 10-K and quarterly reports on Form 10-Q with the SEC, containing detailed financial and operating information [30]. - The Dodd-Frank Act established the Bureau of Consumer Financial Protection and requires compliance with its rules, enforced by the FDIC [33]. - The Basel III Capital Rules mandate a minimum Common Equity Tier 1 (CET1) risk-based capital ratio of 4.5% and a total risk-based capital ratio of 8% [50]. - The company must maintain a capital conservation buffer of 2.5% composed solely of CET1 capital to avoid limitations on certain activities [51]. - The FRB has the authority to require a financial holding company to contribute capital to a troubled subsidiary bank [47]. - The company is subject to limitations on dividend payments if its capital conservation buffer is less than or equal to 2.5% [51]. - The FRB regulates and monitors the capital adequacy of bank holding companies, using risk-based guidelines and leverage ratios [48]. - The company is excluded from the Volcker Rule due to its asset size, which has not materially impacted its operations [41]. - The BHC Act requires prior approval from the FRB for the acquisition of more than 5.0% of the voting shares of a commercial bank [42]. - The Dodd-Frank Act established the Consumer Financial Protection Bureau (CFPB) to oversee compliance with federal consumer protection laws, which applies to Summit as a bank with less than $10 billion in assets [66]. - The USA Patriot Act requires financial institutions to have policies to detect and prevent money laundering, with Summit expected to allocate significant resources to its anti-money laundering program [69]. - Federal banking regulators require institutions to notify their primary regulator within 36 hours of a significant cybersecurity incident [73]. - The Community Reinvestment Act (CRA) requires banks to meet the credit needs of the communities they serve, and Summit Community received a "satisfactory" CRA rating in its most recent examination [61]. - The Graham-Leach-Bliley Act mandates that financial institutions adopt privacy policies and restrict sharing nonpublic customer data, which Summit has established compliance procedures for [63]. - Under West Virginia banking law, any acquisition or merger is limited to not exceeding 25% of total deposits held by insured depository institutions in the state [64]. Financial Performance - Net interest income on a fully tax equivalent basis increased to $130.3 million in 2022, representing a 17.4% increase from 2021 [224]. - Total average earning assets rose by 11.4% to $3.49 billion in 2022, compared to $3.13 billion in 2021 [226]. - The company's net interest margin was 3.73% in 2022, an increase of 19 basis points from 2021 [227]. - Earnings on interest earning assets increased by $36.6 million in 2022, primarily due to higher volumes [225]. - Total average interest bearing liabilities increased by 12.0% to $2.78 billion at December 31, 2022 [226]. - Noninterest income decreased to $18,153,000 in 2022 from $20,208,000 in 2021, primarily due to a $2,519,000 decline in mortgage origination revenue [240]. - Noninterest expense rose to $72,879,000 in 2022, a 6.0% increase from $68,739,000 in 2021, driven mainly by higher salaries and employee benefits [241]. - The effective tax rate for 2022 was 20.9%, up from 20.3% in 2021, with income tax expense totaling $14,100,000 [248]. - Trust and wealth management fees increased to $2,978,000 in 2022 from $2,886,000 in 2021, indicating growth in this segment [240]. - The company recorded realized losses on debt securities of $708,000 in 2022, compared to gains of $425,000 in 2021 [240]. Capital Management - As of December 31, 2022, the company's regulatory capital ratios are well in excess of the minimum regulatory capital ratios plus the full Capital Conservation Buffer [53]. - A bank is considered "well capitalized" if it has a total risk-based capital ratio of 10.0% or greater, a CET1 capital ratio of 6.5% or greater, a Tier 1 risk-based capital ratio of 8.0% or greater, and a leverage ratio of 5.0% or greater [58]. - The company has approximately $19.6 million in junior subordinated debentures as of December 31, 2022, which are senior to common stock in terms of payment priority [150]. - The company issued $30 million in subordinated notes with a fixed interest rate of 5.00% until 2025, after which the rate will reset based on the three-month term SOFR plus 487 basis points [155]. - The capital securities held by the company's trust subsidiaries qualify as Tier 1 capital under FRB guidelines, with limitations on the amount that can be included [154]. - The company issued $75 million in subordinated notes with a fixed interest rate of 3.25% per year until December 1, 2026, after which it will switch to a floating rate [158]. - Total interest payments on the subordinated notes amounted to $4.0 million in 2022, with quarterly obligations of approximately $1.2 million for the 2021 subordinated notes [162]. Workforce and Diversity - As of December 31, 2022, Summit employed 432 full-time equivalent team members, with an increase of approximately 209 full-time employees from acquisitions over the last six years [87]. - The average tenure of full-time employees is 9.98 years, while the executive management team's average tenure is approximately 24.74 years [87]. - Summit's workforce is 78% gender/racial diverse, reflecting the company's commitment to diversity and inclusion [92]. - The Company matches 100% of employee salary reduction contributions to the 401(k) plan, up to 4% of compensation [94]. - The Employee Stock Ownership Plan (ESOP) owned 4.3% of the Company's common stock as of December 31, 2022, with discretionary contributions made by the Company for 2022 amounting to 6% [94]. Market Position and Competition - Summit has been recognized as the number-one "Best-In-State-Bank" in West Virginia by Forbes in both 2018 and 2022, based on a survey of over 25,000 customers [88]. - The Company actively competes for market share by offering competitive rates and terms on loans and deposits [86]. - The company faces aggressive competition from larger financial institutions, which may impact its market share and profitability [166]. - The Company has acquired five whole banks and eight branches over the last six years, enhancing its market presence [87]. Risk Management - The company is exposed to risks related to fraud and financial crimes, which have been increasing nationally [126]. - The company faces significant cybersecurity risks, including attempts to misappropriate sensitive information and introduce malware, which could adversely affect operations and customer trust [130]. - The company has implemented various security measures, but there is no assurance that these will be effective against evolving cyber threats, potentially leading to operational disruptions and financial liabilities [131]. - The company relies on third-party vendors for critical information systems and data management, which poses operational risks if these vendors encounter issues [133]. - The company is subject to environmental liability risks associated with its lending activities, particularly with properties securing loans [119]. - Economic conditions in the company's primary markets, including West Virginia and parts of Virginia and Kentucky, could negatively impact financial performance during prolonged economic downturns [139]. - Inflation has risen sharply since 2021, with expectations of continued elevated levels throughout 2023, potentially affecting the ability of business clients to repay loans and increasing operational costs [140]. - Changes in accounting standards could materially impact the company's financial statements and reported earnings [169]. Asset and Deposit Management - Total assets increased to $3,760,303 thousand in 2022, up from $3,353,281 thousand in 2021, representing a growth of 12.1% [229]. - Total liabilities increased to $3,424,202 thousand in 2022, compared to $3,043,472 thousand in 2021, marking a rise of 12.5% [229]. - Total deposits increased by $226,790,000 to $3,169,879,000 in 2022, reflecting strong customer retention and growth [251]. - Interest-bearing demand deposits grew to $1,350,227 thousand in 2022, up from $1,044,817 thousand in 2021, reflecting a 29.2% increase [229]. - Brokered deposits increased to $32.8 million, or approximately 1.0% of total deposits, compared to $14.7 million, or approximately 0.5% of total deposits at December 31, 2021 [113]. - Total deposits acquired from the purchase of MVB Bank branches in 2021 totaled $164.0 million [267]. - Retail time deposits declined by $189.7 million during 2022 [267]. - Core transaction accounts grew by $598.3 million or 35.3% during 2022, while internet-only high yielding savings products decreased by $166.3 million [267].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 300 North Main Street Moorefield, West Virginia 26836 (Address of principal executive offices) (Zip Code) FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___________ to __________. Commission File Number 0-16587 ( ...

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___________ to __________. UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Commission File Number 0-16587 FORM 10-Q Summit Financial Group, Inc. (Exact name of registrant as specified in its charter) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2022 or West Virginia 55-0672148 (St ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___________ to __________. Commission File Number 0-16587 Summit Financial Group, Inc. (Exact name of registrant as specified in its charter) (304) 530-1000 Large accele ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2021 Commission File Number 0-16587 Summit Financial Group, Inc. (Exact name of registrant as specified in its charter) West Virginia (State or other jurisdiction of incorporation or organization) 300 N. Main Street Moorefield, West Virginia (Address of principal executive offices) 55-0672148 (I.R.S. Empl ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2021 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___________ to __________. Commission File Number 0-16587 Summit Financial Group, Inc. (Exact name of registrant as specified in its charter) West Virginia 55-067214 ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2021 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___________ to __________. Commission File Number 0-16587 Summit Financial Group, Inc. (Exact name of registrant as specified in its charter) West Virginia 55-0672148 (St ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2021 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___________ to __________. Commission File Number 0-16587 Summit Financial Group, Inc. (Exact name of registrant as specified in its charter) West Virginia 55-0672148 (S ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2020 Commission File Number 0-16587 Summit Financial Group, Inc. (Exact name of registrant as specified in its charter) West Virginia (State or other jurisdiction of incorporation or organization) 300 N. Main Street Moorefield, West Virginia (Address of principal executive offices) 55-0672148 (I.R.S. Empl ...