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Summit Financial posts big loss

November 05, 2008 @ 12:00 AM

MOOREFIELD, W.Va. -- The financial meltdown caught up with Summit Financial Group in the third quarter.

The Moorefield-based bank said Tuesday it lost $7.6 million, or $1.03, in the period. Summit earned $3.6 million, or 48 cents per share, in third-quarter 2007.

CEO H. Charles Maddy III blames bad real estate loans for the bulk of Summit's problems.

Summit increased its provision for loan losses to $12 million in the period, from $525,000 a year earlier. Summit also took a $4.5 million, pretax, non-cash charge on to the declining value of preferred shares of mortgage giants Fannie Mae and Freddie Mac. Summit wrote down the value of those investments to $600,000 from $4.9 million.

Summit has approximately $1.5 billion in assets and has 15 branches in Virginia and West Virginia.