Summit Financial Group, Inc. (West Virginia) : SMMF-US: Dividend Analysis : December 15th, 2017 (record date) : By the numbers : December 18, 2017

Our analysis is based on comparing Summit Financial Group, Inc. (West Virginia) with the following peers – First Community Bancshares, Inc., First West Virginia Bancorp, Inc., TowneBank, Premier Financial Bancorp, Inc., American National Bankshares Inc., Regions Financial Corporation, City Holding Company, Peoples Bancorp Inc., Huntington Bancshares Incorporated and F.N.B. Corporation (FCBC-US, FWVB-US, TOWN-US, PFBI-US, AMNB-US, RF-US, CHCO-US, PEBO-US, HBAN-US and FNB-US).

Summit Financial Group, Inc. (West Virginia)’s dividend yield is 1.62 percent and its dividend payout is 35.83 percent. This compares to a peer average dividend yield of 2.52 percent and a payout level of 42.04 percent. This relatively lagging dividend performance could spur some dividend action going forward – except the company’s current dividend quality score of 58 out of a possible score of 100 is only about average.

Dividend Yield
Dividend Quality Score

Dividend Quality Overview

  • Over the last twelve months (prior to September 30, 2017), SMMF-US paid a high quality dividend, which represents a yield of 1.58% at the current price.
  • Dividend quality trend has not been consistent over the last five years. Dividends were paid during 2 of these years — of these 1 was medium quality and 1 was low quality.
  • The ending cash balance, with a dividend coverage of 1.83x, provides a moderate cushion in case of a significant reduction of cash flows in the future.
Dividend Quality Score Vs Dividend Yield

Quadrant label definitions. Hover to know more

High Score;High Yield, High Score;Low Yield, Low Score;Low Yield, Low Score;High Yield

Dividend Coverage

Over the last twelve months (prior to September 30, 2017), SMMF-US paid a high quality dividend.

The source of the company’s cash to support the dividend paid over the last twelve months is operating cash flow (coverage of 4.40x), investing cash flow (coverage of 12.66x), issuance cash flow (coverage of -12.73x) and twelve-month prior cash (coverage of 4.99x), for a total dividend coverage of 2.83x.

SMMF-US’s issuance cash flow includes outflows from net debt repayment (coverage of -13.40x).

Dividend Coverage by Cash Flow (TTM)

These coverage ratio factors imply that the firm’s dividends are wholly paid from operating and investing cash flows net of any debt repayments, which suggests a high dividend quality.

Dividend History

Item 2012-12-31 2013-12-31 2014-12-31 2015-12-31 2016-12-31 Latest
Dividend Yield (%) 0 0 0 2.63 1.45 1.62
Dividend Payout (%) 0 0 0 21.33 24.84 35.83

A complete list of metrics and analysis is available on the company page.

Company Profile

Summit Financial Group, Inc. is a financial holding company, which engages in the provision of community banking and insurance services. It provides community banking services, which include demand, savings and time deposits; commercial, real estate and consumer loans; letters of credit; and cash management services. The company also provides commercial, commercial real estate, construction and development, residential real estate, and consumer and mortgage warehouse lines of credit. It operates through two segments: Community Banking and Insurance & Financial Services. The Community Banking segment consists of full service banks which offer customers traditional banking products and services through various delivery channels. The Insurance & Financial Services segment consists of three insurance agency offices that sell insurance products. Summit Financial Group was founded on March 5, 1987 and is headquartered in Moorefield, WV.

Disclaimer

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