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 1.94 percent and its dividend payout is 24.84 percent. This compares to a peer average dividend yield of 2.47 percent and a payout level of 43.22 percent. This relatively lagging dividend performance would normally spur the company to consider some dividend action going forward – but for the fact that the current dividend quality score of 25 out of a possible score of 100 looks weak.
Dividend Quality Overview
- Over the last twelve months (prior to December 31, 2016), SMMF-US paid a medium quality dividend, which represents a yield of 1.89% 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 is less than the last full year dividend payment and cannot be relied on to cushion any significant reduction of cash flows in the future.
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Over the last twelve months (prior to December 31, 2016), SMMF-US paid a medium 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 5.29x), investing cash flow (coverage of -29.95x), issuance cash flow (coverage of 34.35x) and twelve-month prior cash (coverage of 0.85x), for a total dividend coverage of 2.00x.
These coverage ratio factors imply that the firm’s net cash inflow from issuance was required (in addition to operating and investment cash) to pay the dividend, which suggests a medium dividend quality.
|Dividend Yield (%)||0||0||0||2.63||1.45||1.94|
|Dividend Payout (%)||0||0||0||21.33||24.84||24.84|
A complete list of metrics and analysis is available on the company page.
Summit Financial Group, Inc. is a financial holding company, which engages in the provision of community banking and insurance services. It provides 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. It also provides commercial, commercial real estate, construction and development, residential real estate, and consumer loans. The firm operates through the Community Banking and Insurance and Financial Services segments. The Community Banking segment consists of full service banks which offer customers traditional banking products and services through various delivery channels. The Insurance and Financial Services segment consists of three insurance agency offices that sell insurance products. The company was founded on March 5, 1987 and is headquartered in Moorefield, WV.
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