GlobeNewswire Inc | Sep 23, 2020 01:26PM EDT

September 23, 2020

MOOREFIELD, W. Va., Sept. 23, 2020 (GLOBE NEWSWIRE) -- Summit Financial Group, Inc. (Company or Summit) (NASDAQ: SMMF) today announced the completion of a private placement of$30 millionof its 5.00% Fixed to Floating Rate Subordinated Notes due 2030 (the "Notes") to certain qualified institutional buyers and accredited investors.

The Notes will initially bear interest at a fixed annual rate of 5.00% for the first five years and will reset quarterly thereafter to the then current three-month SOFR rate plus 487 basis points. Beginning on September 30, 2025 through maturity, the Notes may be redeemed, at the Companys option, on any scheduled interest payment date. The Notes are intended to qualify as Tier 2 capital for regulatory capital purposes for the Company.

Summit intends to use the net proceeds from the offering for general corporate purposes, which may include organic growth and strategic initiatives, such as acquisitions.

D.A. Davidson & Co. served as the sole placement agent for the offering.Hunton Andrews Kurth LLPserved as legal counsel to the Company andBowles Rice, LLPserved as legal counsel to the placement agents.

This press release is for informational purposes only and shall not constitute an offer to sell, or the solicitation of an offer to buy, any security, nor shall there by any sale in any jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction. The Notes have not been registered under the Securities Act and may not be offered or sold inthe United Statesabsent registration or an applicable exemption from registration requirements. The indebtedness evidenced by the Notes is not a deposit and is not insured by theFederal Deposit Insurance Corporationor any other government agency or fund.

About Summit

Summit Financial Group, Inc. is a $2.86 billion financial holding company headquartered in Moorefield, West Virginia. Summit provides community banking services primarily in the Eastern Panhandle, Southern and North Central regions of West Virginia and the Northern, Shenandoah Valley and Southwestern regions of Virginia, through its bank subsidiary, Summit Community Bank, Inc., which operates 41 banking locations.

Contact:Robert S. Tissue, Executive Vice President & CFOTelephone: (304) 530-0552Email: rtissue@summitfgi.com