FORM 10-Q

                      SECURITIES AND EXCHANGE COMMISSION
                            Washington, D.C.  20549

               QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
                    OF THE SECURITIES EXCHANGE ACT OF 1934

                 For The Quarterly Period Ended June 30, 1997

                       Commission File Number  000-19235

                         SUMMIT FINANCIAL CORPORATION
            (Exact name of registrant as specified in its charter)


SOUTH  CAROLINA                                                     57-0892056
(State  or  other  jurisdiction                               (I.R.S. Employer
of  incorporation  or          Identification  No.)
organization)

                             Post Office Box 1087
                         937 North Pleasantburg Drive
                       Greenville, South Carolina  29602
         (Address, including zip code, of principal executive offices)

                                (803) 242-2265
             (Registrant's telephone number, including area code)


Indicate  by  check  mark  whether  the  registrant  (1) has filed all reports
required  to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934  during  the  preceding  12  months  (or for such shorter period that the
registrant  was  required  to  file such reports), and (2) has been subject to
such  filing  requirements  for  the  past  90  days.        YES  [X]   NO [ ]

Indicate  the  number of shares outstanding of each of the issuer's classes of
common  stock,  as  of  the  latest  practicable  date.

As  of  July  20,  1997, 1,342,413 shares of $1.00 par value common stock were
outstanding.

<PAGE>
                         SUMMIT FINANCIAL CORPORATION

                               TABLE OF CONTENTS


PART  I  -  FINANCIAL  INFORMATION


Item

1.          Consolidated  Financial  Statements  (Unaudited):

     Consolidated  Balance  Sheets  as  of June 30, 1997 and December 31, 1996

     Consolidated  Statements  of  Operations  for  the  Quarters
     Ended  June  30,  1997  and  1996

     Consolidated  Statements  of  Operations  for  the  Six  Months
     Ended  June  30,  1997  and  1996

     Consolidated  Statements  of  Shareholders'  Equity  for  the  Six Months
     Ended  June  30,  1997  and  for  the  Year  Ended  December  31,  1996

     Consolidated  Statements  of  Cash  Flows  for  the  Six  Months  Ended
     June  30,  1997  and  1996

     Notes  to  Consolidated  Financial  Statements

2.          Management's  Discussion  and  Analysis  of  Financial  Condition
     and  Results  of  Operations  for  the  Quarters  and  the  Six  Months
     Ended  June  30,  1997  and  1996


Part  II  -  Other  Information


Signatures


<PAGE>
<TABLE>
<CAPTION>

                            SUMMIT FINANCIAL CORPORATION
                            CONSOLIDATED BALANCE SHEETS
                               (Dollars in Thousands)


                                                                      December 31,
                                                      June 30, 1997       1996
                                                     ---------------  -------------
                                                       (Unaudited)
<S>                                                  <C>              <C>

ASSETS:
Cash and interest-bearing deposits                   $        8,213   $       6,026
Federal funds sold                                            2,339           3,000
Investment securities available for sale
 (amortized cost of $20,656 and $18,510)                     20,665          18,511
Investments in stock of Federal Reserve Bank,
 Federal Home Loan Bank, and other, at cost                     693             634
Loans, net of unearned income and net of allowance
 for loan losses of $1,698 and $1,487                       112,911         101,205
Premises and equipment, net                                   2,433           2,502
Accrued interest receivable                                   1,010             940
Other assets                                                  1,428           1,344
                                                     ---------------  -------------
     TOTAL ASSETS                                    $      149,692   $     134,162
                                                     ===============  =============
LIABILITIES & SHAREHOLDERS' EQUITY:
Demand deposits                                      $       12,691   $      17,484
Interest-bearing demand deposits                              6,549           6,227
Savings and money market deposits                            34,399          23,366
Time deposits, $100,000 and over                             27,691          25,393
Other time deposits                                          49,889          45,335
                                                     ---------------  -------------
     TOTAL DEPOSITS                                         131,219         117,805
Securities sold under repurchase agreements                     781             761
Other borrowings                                              3,500           2,550
Accrued interest payable                                        964             823
Other liabilities                                               813             586
                                                     ---------------  -------------
     TOTAL LIABILITIES                                      137,277         122,525
                                                     ---------------  -------------
SHAREHOLDERS' EQUITY:
Common stock ($1.00 par value; 20,000,000 shares
 authorized; issued and outstanding 1,342,413 and
 1,334,409 shares)
Additional paid-in capital                                   10,293          10,254
Retained earnings                                               787              48
Unrealized net loss on investments available
 for sale, net of income taxes                                   (7)              -
                                                     ---------------  -------------
     TOTAL SHAREHOLDERS' EQUITY                              12,415          11,637
                                                     ---------------  -------------
     TOTAL LIABILITIES AND EQUITY                    $      149,692   $     134,162
                                                     ===============  =============

<FN>

SEE  NOTES  TO  CONSOLIDATED  FINANCIAL  STATEMENTS
</TABLE>



<PAGE>
<TABLE>
<CAPTION>

                         SUMMIT FINANCIAL CORPORATION
                     CONSOLIDATED STATEMENTS OF OPERATIONS
                                  (Unaudited)
                 (Dollars, except per share data in Thousands)

                                               For the Quarters Ended June 30,

                                                      1997     1996
                                                     -------  -------
<S>                                                  <C>      <C>

INTEREST INCOME:
 Loans                                               $2,871   $2,076 
 Taxable investment securities                          287      338 
 Nontaxable investment securities                        19        8 
 Federal funds sold                                      54       77 
 Other                                                   38       37 
                                                     -------  -------
                                                      3,269    2,536 
                                                     -------  -------
INTEREST EXPENSE:
 Deposits                                             1,446    1,174 
 Other                                                   67       53 
                                                     -------  -------
                                                      1,513    1,227 
                                                     -------  -------
Net interest income                                   1,756    1,309 
Provision for loan losses                              (124)    (103)
                                                     -------  -------
Net interest income after provision for loan losses   1,632    1,206 
                                                     -------  -------
OTHER INCOME:
 Service charges and fees                                52       42 
 Credit card service fees and income                     62       55 
 Insurance commission fee income                         46       52 
 Other income                                            94      109 
                                                     -------  -------
                                                        254      258 
                                                     -------  -------
OTHER OPERATING EXPENSES:
 Salaries, wages and benefits                           649      565 
 Occupancy                                              119       93 
 Furniture, fixtures and equipment                      107       96 
 Other operating expenses                               380      290 
                                                     -------  -------
                                                      1,255    1,044 
                                                     -------  -------
Net income before income taxes                          631      420 
Provision for income taxes                             (231)    (160)
                                                     -------  -------
NET INCOME                                           $  400   $  260 
                                                     =======  =======
PER SHARE DATA:
  Primary                                            $ 0.29   $ 0.18 
  Fully diluted                                      $ 0.29   $ 0.18 
AVERAGE SHARES OUTSTANDING:
  Primary                                             1,492    1,410 
  Fully Diluted                                       1,492    1,410 

<FN>

SEE  NOTES  TO  CONSOLIDATED  FINANCIAL  STATEMENTS
</TABLE>




<PAGE>
<TABLE>
<CAPTION>

                         SUMMIT FINANCIAL CORPORATION
                     CONSOLIDATED STATEMENTS OF OPERATIONS
                                  (Unaudited)
                 (Dollars, except per share data in Thousands)

                                             For the Six Months Ended June 30,

                                                      1997     1996
                                                     -------  -------
<S>                                                  <C>      <C>

INTEREST INCOME:
 Loans                                               $5,544   $4,047 
 Taxable investment securities                          554      645 
 Nontaxable investment securities                        28       14 
 Federal funds sold                                     125      116 
 Other                                                   78       77 
                                                     -------  -------
                                                      6,329    4,899 
                                                     -------  -------
INTEREST EXPENSE:
 Deposits                                             2,785    2,290 
 Other                                                  128      100 
                                                     -------  -------
                                                      2,913    2,390 
                                                     -------  -------
Net interest income                                   3,416    2,509 
Provision for loan losses                              (211)    (186)
                                                     -------  -------
Net interest income after provision for loan losses   3,205    2,323 
                                                     -------  -------
OTHER INCOME:
 Service charges and fees                               102       85 
 Credit card service fees and income                    122      112 
 Insurance commission fee income                         96       97 
 Other income                                           174      207 
                                                     -------  -------
                                                        494      501 
                                                     -------  -------
OTHER OPERATING EXPENSES:
 Salaries, wages and benefits                         1,341    1,149 
 Occupancy                                              231      189 
 Furniture, fixtures and equipment                      214      197 
 Other operating expenses                               744      602 
                                                     -------  -------
                                                      2,530    2,137 
                                                     -------  -------
Net income before income taxes                        1,169      687 
Provision for income taxes                             (430)    (262)
                                                     -------  -------
NET INCOME                                           $  739   $  425 
                                                     =======  =======
PER SHARE DATA:
  Primary                                            $ 0.52   $ 0.30 
  Fully diluted                                      $ 0.52   $ 0.30 
AVERAGE SHARES OUTSTANDING:
  Primary                                             1,491    1,410 
  Fully Diluted                                       1,491    1,410 

<FN>

SEE  NOTES  TO  CONSOLIDATED  FINANCIAL  STATEMENTS
</TABLE>




<PAGE>
<TABLE>
<CAPTION>

                                                SUMMIT FINANCIAL CORPORATION
                                       CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY
                                     FOR THE SIX MONTHS ENDED JUNE 30, 1997 (UNAUDITED)
                                          AND FOR THE YEAR ENDED DECEMBER 31, 1996


                                                   Shares  Amount   Additional    Retained     Unrealized         Total
                                                                      paid-in     earnings        net         shareholders'
                                                                      capital                 gain (loss)        equity
                                                                                                   on
                                                                                               investment
                                                                                               securities
                                                                                               available
                                                                                                  for
                                                                                              sale, net of
                                                                                                 income
                                                                                                 taxes
                                                                                             --------------         
<S>                                                <C>     <C>      <C>          <C>         <C>             <C>

Balance at December 31, 1995                        1,267  $ 1,267  $     9,342          -   $          54   $       10,663 
Net income for the year ended December 31, 1996         -        -            -  $   1,002               -            1,002 
Change in unrealized net gain (loss) on
 investment securities available for
 sale, net of income taxes                              -        -            -          -             (54)             (54)
Employee stock options exercised                        4        4           24          -               -               28 
Issuance of 5% stock distribution                      64       64          888       (952)              -                - 
Cash in lieu of fractional shares from
 stock distribution                                     -        -            -         (2)              -               (2)
                                                   ------  -------  -----------  ----------  --------------  ---------------
Balance at December 31, 1996                        1,335    1,335       10,254         48               -           11,637 
Net income for the six months ended June 30, 1997       -        -            -        739               -              739 
Change in unrealized net gain (loss) on
 investment securities available for
 sale, net of income taxes                              -        -            -          -              (7)              (7)
Employee stock options exercised                        7        7           39          -               -               46 
Balance at June 30, 1997                            1,342  $ 1,342  $    10,293  $     787             ($7)  $       12,415 
                                                   ======  =======  ===========  ==========  ==============  ===============

<FN>

                                       SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
</TABLE>




<PAGE>
<PAGE>
<TABLE>
<CAPTION>

                                 SUMMIT FINANCIAL CORPORATION
                             CONSOLIDATED STATEMENTS OF CASH FLOWS
                                          (Unaudited)

                                                             For the Six Months Ended June 30,

                                                                            1997       1996
                                                                          ---------  ---------
<S>                                                                       <C>        <C>

CASH FLOWS FROM OPERATING ACTIVITIES:
 Net income                                                               $    739   $    425 
 Adjustments to reconcile net income to net cash
  provided by operating activities:
   Provision for loan losses                                                   211        186 
   Depreciation and amortization                                               167        153 
   Gain on sale of fixed assets                                                (20)         - 
   Gain on sale of investments available for sale                               (1)         - 
   Net (accretion) amortization of net (discount) premium on investments       (12)         7 
   Increase in other assets                                                   (153)      (142)
   Increase (decrease) in other liabilities                                    371       (395)
Net cash provided by operating activities                                    1,302        234 
                                                                          ---------  ---------
CASH FLOWS FROM INVESTING ACTIVITIES:
 Purchases of securities available for sale                                 (7,145)    (7,316)
 Proceeds from maturities of securities available for sale                   2,002      5,338 
 Proceeds from sales of securities available for sale                        2,991          - 
 Purchases of Federal Home Loan Bank Stock                                     (58)      (122)
 Net increase in loans                                                     (11,418)   (11,577)
 Purchases of net finance loans receivable                                    (499)      (234)
 Purchases of fixed assets                                                    (101)       (15)
 Proceeds from sale of fixed assets                                             22          - 
Net cash used in investing activities                                      (14,206)   (13,926)
                                                                          ---------  ---------
CASH FLOWS FROM FINANCING ACTIVITIES:
 Net increase in deposit accounts                                           13,414     10,624 
 Net increase in securities sold under repurchase agreements                    20        161 
 Repayment of other borrowings                                                 (50)         - 
 Advances from other borrowings                                              1,000          - 
 Proceeds from stock issuance pursuant to employee stock option plan            46         10 
Net cash provided by financing activities                                   14,430     10,795 
                                                                          ---------  ---------
Net (decrease) increase in cash and cash equivalents                         1,526     (2,897)
Cash and cash equivalents, beginning of period                               9,026     15,445 
Cash and cash equivalents, end of period                                  $ 10,552   $ 12,548 
                                                                          =========  =========
SUPPLEMENTAL INFORMATION:
 Cash paid during period for interest                                     $  2,772   $  2,351 
 Cash paid during period for income taxes                                 $    485   $    434 
 Change in market value of investment securities available                $     (7)  $   (256)
  for sale, net of income taxes

<FN>


SEE  NOTES  TO  CONSOLIDATED  FINANCIAL  STATEMENTS
</TABLE>




<PAGE>
                         SUMMIT FINANCIAL CORPORATION

                  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                                 JUNE 30, 1997


NOTE  1  -  BASIS  OF  PRESENTATION:

     Summit Financial Corporation (the Company), a South Carolina corporation,
is  the  parent  holding  company  for  Summit  National  Bank  (the  Bank), a
nationally  chartered bank, and Freedom Finance, Inc. (the Finance Company), a
consumer  finance  company.

     Through its bank subsidiary, which commenced operations in July 1990, the
Company  provides  a  full  range of banking services, including the taking of
demand and time deposits and the making of commercial and consumer loans.  The
Bank  currently  has  two  full  service branch locations in Greenville, South
Carolina.  The Finance Company commenced operations in November 1994 and makes
and  services  small  installment loans to individuals from its twelve offices
throughout  South  Carolina.

     The  unaudited  consolidated  financial statements of the Company at June
30,  1997  and  for  the periods ended June 30, 1997 and 1996 were prepared in
accordance  with  the  instructions  for  Form  10-Q  and,  in  the opinion of
management,  all  adjustments  (consisting only of items of a normal recurring
nature)  necessary  for  a fair presentation of the financial position at June
30,  1997,  and the results of operations and cash flows for the periods ended
June 30, 1997 and 1996 have been included.  The results for the quarter or six
month period ended June 30, 1997 are not necessarily indicative of the results
that  may  be  expected  for  the  full  year  or  any  other  interim period.

     These  consolidated  financial  statements do not include all disclosures
required  by  generally  accepted  accounting principles and should be read in
conjunction  with  the Company's audited consolidated financial statements and
related  notes  for the year ended December 31, 1996 included in the Company's
1996  Annual  Report  on  Form  10K.

NOTE  2  -  CASH  FLOW  INFORMATION:

     The  Company  considers  those  amounts  included  in  the  balance sheet
captions  "Cash  and interest-bearing deposits" and "Federal funds sold" to be
cash  and cash equivalents, which totaled $10,552 and $12,548 at June 30, 1997
and  1996,  respectively.    Cash  includes  currency  and coin, cash items in
process  of  collection  and  due  from  banks.    Included  in  cash and cash
equivalents are overnight investments and short-term investments with original
maturities  of  less  than  six  months.



<PAGE>
                         SUMMIT FINANCIAL CORPORATION

                         PART I. FINANCIAL INFORMATION

                 ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS
               OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS


     Summit  Financial  Corporation  (the  Company) is a financial institution
holding  company headquartered in Greenville, South Carolina.  The Company has
a  wholly-owned  bank  subsidiary,  Summit  National  Bank  (the  Bank)  and a
wholly-owned  consumer  finance company subsidiary, Freedom Finance, Inc. (the
Finance  Company).

     During  the quarter ended June 30, 1996, the Company's net income totaled
$400,000  or  $.29  per  share.  This is compared to net income of $260,000 or
$.18  per  share  for the same quarterly period of 1996 or an increase of 54%.
For  the  first six months of 1997 the Company reported net income of $739,000
or  $.52  per  share, an improvement of approximately $314,000 compared to the
net  income  for  the  first six months of 1996 of $425,000 or $.30 per share.

     Total  assets  increased approximately $15.5 million or 12% from December
31,  1996 to June 30, 1997.  Deposits increased approximately $13.4 million or
11%  during  the period.  The increase in deposits, combined with the $950,000
(37%)  increase in other borrowings, funded gross loan growth of $11.9 million
(12%)  and  the  $2.2 million (12%) increase in investments available for sale
during  the  same  period.

RESULTS  OF  OPERATIONS  -  COMPARISON OF THE QUARTERS ENDED JUNE 30, 1997 AND
1996

GENERAL
     The  Company  reported consolidated net income for the quarter ended June
30, 1997 of $400,000, compared to net income of $260,000 for the quarter ended
June  30,  1996,  or  an  improvement  of  approximately $140,000 or 54%.  The
increase  in  consolidated  earnings  for  the  1997  period  is  primarily
attributable  to  a  $447,000  or  34%  increase in the Company's net interest
income  related  to  the higher level of earning assets in 1997 as compared to
the  prior  year combined with the increase in general level of interest rates
during the period.  The increase in net interest income was somewhat offset by
increases  in  other  operating  expenses.  The Company on a stand-alone basis
recorded  net  income  of  $22,000  for  the  second  quarter  of 1997 related
primarily  to  the  interest  income from an intercompany loan to its consumer
finance  subsidiary.

     Summit  National  Bank  recorded net earnings of $387,000 for the quarter
ended  June  30, 1997 which was a 59% increase from the second quarter of 1996
earnings of $244,000.  The increase in net income for this subsidiary resulted
primarily  from  a  $333,000  (31%) increase in the Bank's net interest income
which  was  directly  related to a 19% higher level of earning assets and a 39
basis  point improvement in the net interest margin.  This increase was offset
somewhat  by  a reduction in other income due to a lower volume of activity in
the  nondeposit  financial services area of the Bank during the second quarter
of  1997  as  compared  to  the  prior  year, and increases in other operating
expenses.

     The  Company's  consumer  finance  subsidiary,  Freedom  Finance,  Inc.,
recorded  net  losses  for  both  the  second  quarter  of  1997  and  1996 of
approximately  $(9,000)  and  $(3,000),  respectively.    The  higher level of
outstanding  loans  for  the  1997 period as compared to the 1996 period which
generated  a  $108,000  or  52%  increase  in  net  interest income was offset
primarily  by  increases  in  (1)  the provision for loan losses and (2) other
operating  expenses  resulting from the higher number of offices and employees
in  1997  as  compared  to  the  same  period  of  1996.

NET  INTEREST  INCOME
     Net  interest  income  is  the  difference between the interest earned on
assets and the interest paid for the liabilities used to support those assets.
It  is  the largest component of the Company's earnings and changes in it have
the greatest impact on net income.  Variations in the volume and mix of assets
and  liabilities  and  their  relative  sensitivity to interest rate movements
determine  changes  in net interest income.  During the quarter ended June 30,
1997, the Company recorded consolidated net interest income of $1.8 million, a
34%  increase  from  the  net  interest income of $1.3 million for the quarter
ended  June  30, 1996.  The increase in this amount is directly related to (1)
the  increase in the average loan and interest-bearing liability volume of the
Bank  of  29%  and  17%, respectively; and (2) the contribution of the Finance
Company as its average earning assets increased 51% between the second quarter
of  1996  and  1997.

     For the quarters ended June 30, 1997 and 1996, the Company's consolidated
net  interest  margin  was  5.12%  and  4.53%, respectively.  The net interest
margin is calculated as annualized net interest income divided by year-to-date
average  earning  assets.  The increase in consolidated net interest margin is
related to the Bank's net interest margin which increased 39 basis points as a
result  of the higher average yield on loans and investments during the period
related  to  the  increase in the prime lending rate and repricing of numerous
securities  at  higher current market rates during the second quarter of 1997.
The  contribution of the Finance Company's margin added to the increase in the
consolidated  results.

INTEREST  INCOME
     For  the  quarter  ended  June  30,  1997,  the  Company's earning assets
averaged  $137.6  million and had an average yield of 9.56%.  This compares to
average  earning  assets  of  $115.7  million  for the second quarter of 1996,
yielding  approximately  8.81%.    Thus,  the  significant  contributor to the
increase in interest income of $733,000 or 29% between the quarters ended June
30, 1996 and 1997 is the increase in volume of earning assets of 19%, combined
with  the  75  basis  point  increase  in  average  yield.

     Consolidated  loans  averaged  approximately 80% of the Company's average
earning  assets.    The  majority of the Company's loans are tied to the prime
rate  (approximately  60% of the Bank's portfolio is at floating rates), which
averaged  8.50%  and  8.25%  for  the  quarters  ended June 30, 1997 and 1996,
respectively.    During  the second quarter of 1997, the Bank's loans averaged
$108.5  million, yielding an average rate of 9.25%, compared to $84.0 million,
yielding  an  average  of  rate  8.82%  for  the  second quarter of 1996.  The
increase in the average yield on the Bank's loans is related to higher pricing
on  loans  originated  during  the latter half of 1996 and into 1997, combined
with the 25 basis point increase in the prime lending rate in late March 1997.
The  increase in average yield of the Finance Company loans contributed to the
consolidated  average  yield on loans which increased to 10.47% for the second
quarter  of 1997 compared to 9.84% for the second quarter of 1996.  The higher
level  of  average loans, combined with the increase in average rate, resulted
in  an  increase  in consolidated interest income on loans of $795,000 or 38%.

     Investment  securities  averaged  $19.9 million or 14% of average earning
assets  and  yielded 6.37% (tax equivalent basis) during the second quarter of
1997,  compared  to average securities of $22.6 million yielding 6.16% for the
quarter  ended  June  30,  1996.    The  increase  in the average yield of the
investment portfolio is related to the timing, maturity distribution and types
of  securities  purchased during the latter half of 1996 and into 1997 as well
as  the  maturities  of  some investments at lower than current market yields.
The  12%  decrease  in  average  securities  (which  was  primarily related to
maturities  of  the  holding  company's  securities  being  reinvested  in
intercompany  borrowings) was offset somewhat by the increase in average rate,
and  resulted  in  the decrease of interest income on securities of $40,000 or
12%.

INTEREST  EXPENSE
     The  Company's  interest  expense for the quarter ended June 30, 1997 was
$1.5 million.  The increase of 23% from the comparable quarter in 1996 of $1.2
million  was related to the 17% increase in average volume of interest-bearing
liabilities,  combined  with  the increase in average rate of 24 basis points.
Interest-bearing liabilities averaged $115.7 million for the second quarter of
1997 with an average rate of 5.25%.  This compares to average interest-bearing
liabilities  of  $98.6  million  with an average rate of 5.01% for the quarter
ended  June  30, 1996.  The increase in the average rate was the result of (1)
the higher level of general interest rates in 1997 as compared to 1996 and (2)
the  increase  in rates paid on money market deposit accounts and certificates
of  deposit  in  1997 for promotions to increase deposits required to meet the
loan  growth  demand.

PROVISION  FOR  LOAN  LOSSES
     The  amount  charged to the provision for loan losses by the Bank and the
Finance  Company  is based on management's judgment as to the amounts required
to  maintain an allowance adequate to provide for potential losses in the loan
portfolio.    The level of this allowance is dependent upon growth in the loan
portfolios;  the  total  amount  of past due loans; nonperforming loans; known
loan  deteriorations  and/or  concentrations  of  credit;  trends in portfolio
volume,  maturity  and  composition;  projected  collateral  values;  general
economic  conditions;  and  management's  assessment of potential losses based
upon internal credit grading of the loans and periodic reviews and assessments
of  credit  risk  associated  with  particular  loans.

     While  it  is  the  Company's  policy to charge-off in the current period
loans  in  which  a loss is considered probable, there are additional risks of
future losses which cannot be quantified precisely or attributed to particular
loans  or classes of loans.  Management uses the best information available to
make  evaluations,  however,  future  adjustments  to  the  allowance  may  be
necessary  if  economic  conditions  differ substantially from the assumptions
used  in  making  evaluations.    The  Company  is  also subject to regulatory
examinations and determinations as to the adequacy of the allowance, which may
take  into  account  such  factors  as  the  methodology used to calculate the
allowance  for  loan  losses  and the size of the allowance in comparison to a
group  of  peer  companies  identified  by  the  regulatory  agencies.

     Included  in  the  net  income  for  the quarter ended June 30, 1997 is a
provision  for loan losses of $124,000 compared to a provision of $103,000 for
the  second  quarter of 1996.  Net originations for the second quarter of 1997
were  $8.3  million  as  compared to $5.7 million for the same period of 1996,
thus  the  increase  in  the  provision  for the comparable quarterly periods.

     At  June  30,  1997,  the consolidated allowance for loan losses was $1.7
million  or 1.48% of total gross loans.  This compares to an allowance of $1.3
million  or 1.45% of gross loans at June 30, 1996.  For the quarter ended June
30,  1997,  the Company reported net charge-offs of $29,000, which is a result
of  the  Finance Company net charge-offs of $32,000 (4.07% of average loans of
the  Finance  Company)  combined with the Bank's net recoveries for the second
quarter  of 1997 of ($3,000).  This is compared to consolidated net recoveries
of  previously  charged-off  loans  of  ($6,000) for the comparable quarter of
1996.    There  were  no loans on nonaccrual status at either June 30, 1997 or
1996.    Loans  past due 90 days and greater totaled $80,000 or 0.07% of gross
loans  at  June  30, 1997 and $68,000 or .08% of gross loans at June 30, 1996.
Generally  loans of the Bank are placed on nonaccrual status at the earlier of
when  they  are  90  days  past due or when the collection of interest becomes
doubtful.   Loans of the Finance Company are not classified as nonaccrual, but
are charged-off when they become 150 days contractually past due or earlier if
the  loan  is deemed uncollectible.  The allowance for loan losses at June 30,
1997  represents  management's  estimate  of  potential  losses  in  the  loan
portfolio  at  that  date.

OTHER  INCOME  AND  EXPENSES
     Other income, which is primarily related to service charges on customers'
deposit  accounts;  credit  card  interchange  fees;  merchant  discount fees;
commissions  on  nondeposit  investment  product  sales  and insurance product
sales;  and mortgage origination fees, was $254,000 for the quarter ended June
30, 1997 compared to $258,000 for the second quarter of 1996, or a decrease of
2%.  The majority of the decrease is related to the lower volume of nondeposit
sale  transactions  generating commission income in the second quarter of 1997
as  compared  to  1996.

     For  the  quarter  ended June 30, 1997, total overhead expenses were $1.3
million  which  is an increase of 20% over the amount incurred for the quarter
ended  June  30,  1996 of $1.0 million.  The most significant item included in
other  expenses is salaries, wages and benefits which amounted to $649,000 for
the  quarter ended June 30, 1997 as compared to $565,000 for the quarter ended
June  30,  1996.    The  increase  of $84,000 or 15% is a result of (1) normal
annual  raises;  and  (2)  the  Finance  Company's  operations which increased
$72,000  or  54%  related to the additional offices and staff (approximately 7
new  employees)  between  the  second  quarters of 1996 and 1997.  The Finance
Company's  operations  accounted  for  85%  of  the  increase  in salaries and
benefits  for  the  second  quarter  of  1997  as  compared to the prior year.

     The  28%  ($26,000)  increase in occupancy expenses and the 12% ($11,000)
increase  in  furniture,  fixtures,  and  equipment ("FFE") between the second
quarters of 1996 and 1997 are primarily related to an $8,000 vault door repair
at  the Bank during the second quarter of 1997, and the additional branches of
the  Finance  Company  in  the second quarter of 1997 as compared to the prior
year.

     Included  in  the  line  item "other operating expenses", which increased
$90,000  or  31%  from  the  comparable  quarter  of 1996, are charges for OCC
assessments;  property  and  bond  insurance; Relay/Cirrus switch fees; credit
card  expenses; professional services; education and seminars; advertising and
public relations; and other branch and customer related expenses.  These items
are  related  directly  to  the  normal operations of the Bank and increase in
relation  to  the  increase in assets, the higher level of transaction volume,
and the larger number of customer accounts.  The Bank's activity accounted for
$45,000  or  50%  of  the  increase  and, in addition to normal volume-related
activity  had  increases in advertising due to several new deposit promotions;
expenses  for  the  check  card  product  introduced  in  1997;  and  higher
professional  and  outside  service  fees  related  to  additional  technology
consulting  engagements  during  1997.

     Also  included in the line item "other operating expenses" is activity of
the  Finance  Company which includes charges for credit reports, license fees,
acquisition premium amortization, and office support.  These items increase in
relation  to the volume of activity, number of branches and number of customer
accounts.    The Finance Company increased the number of branches between June
1996  and  June  1997  by  33%.

INCOME  TAXES
     For  the  quarter  ended  June 30, 1997, the Company reported $231,000 in
income  tax  expense,  or an effective tax rate of 36.6%.  This is compared to
income  tax  expense of $160,000 for the same quarter of the prior year, or an
effective  tax  rate of 38%.  The reduction in the effective rate is primarily
related  to the increase in tax-free municipal investments in 1997 as compared
to  the  prior  year.



RESULTS  OF  OPERATIONS - COMPARISON OF THE SIX MONTHS ENDED JUNE 30, 1997 AND
1996

GENERAL
     The  Company  reported  consolidated  net income for the six months ended
June  30,  1997  of  $739,000,  compared to net income of $425,000 for the six
months  ended  June  30,  1996, or an improvement of approximately $314,000 or
74%.    The increase in consolidated earnings for the 1997 period is primarily
attributable  to  a  $907,000  or  36%  increase in the Company's net interest
income  related  to  the higher level of earning assets in 1997 as compared to
the  prior  year combined with the increase in general level of interest rates
during the period.  The increase in net interest income was somewhat offset by
increases  in  other  operating  expenses.  The Company on a stand-alone basis
recorded  net income of $41,000 for the six months ended June 30, 1997 related
primarily  to  the  interest  income from an intercompany loan to its consumer
finance  subsidiary.

     Summit National Bank recorded net earnings of $709,000 for the six months
ended  June  30,  1997  which was an 81% increase from the first six months of
1996  earnings  of  $392,000.   The increase in net income for this subsidiary
resulted  primarily  from a $635,000 (31%) increase in the Bank's net interest
income  which  was  directly  related to a 21% higher level of average earning
assets  and  a  59  basis  point improvement in the net interest margin.  This
increase  was  offset  somewhat  by a reduction in other income due to a lower
volume  of  activity  in  the  nondeposit  financial services area of the Bank
during  the  first  six  months  of  1997  as  compared to the prior year, and
increases  in  other  operating  expenses.

     The  Company's  consumer  finance  subsidiary,  Freedom  Finance,  Inc.,
recorded  net  losses  for  both  the  first  six  months  of 1997 and 1996 of
approximately  $(11,000)  and  $(5,000),  respectively.    The higher level of
outstanding  loans  for  the  1997 period as compared to the 1996 period which
generated  a  $261,000  or  63%  increase  in  net  interest income was offset
primarily  by  increases  in  (1)  the provision for loan losses and (2) other
operating  expenses  resulting from the higher number of offices and employees
in  1997  as  compared  to  the  same  period  of  1996.

NET  INTEREST  INCOME
     Net  interest  income,  the  difference  between  the interest earned and
interest  paid, is the largest component of the Company's earnings and changes
in  it  have  the greatest impact on net income.  Variations in the volume and
mix  of assets and liabilities and their relative sensitivity to interest rate
movements  determine  changes  in  net interest income.  During the six months
ended  June 30, 1997, the Company recorded consolidated net interest income of
$3.4  million, a 36% increase from the net interest income of $2.5 million for
the  six  months ended June 30, 1996.  The increase in this amount is directly
related to (1) the increase in the average loan and interest-bearing liability
volume  of  the Bank of 30% and 19%, respectively; and (2) the contribution of
the  Finance  Company  as its average earning assets increased 50% between the
first  six  months  of  1996  and  1997.

     For  the  six  months  ended  June  30,  1997  and  1996,  the  Company's
consolidated  net  interest margin was 5.14% and 4.55%, respectively.  The net
interest  margin  is  calculated  as annualized net interest income divided by
year-to-date  average  earning  assets.    The  increase  in  consolidated net
interest  margin  is related to the Bank's net interest margin which increased
34  basis  points  as  a  result  of  the  higher  average  yield on loans and
investments  during  the  period  related to the increase in the prime lending
rate  and  repricing  of  numerous  securities  at higher current market rates
during  the  first  six  months  of  1997.    The  contribution of the Finance
Company's  margin  added  to  the  increase  in  the  consolidated  results.

INTEREST  INCOME
     For  the  six  months  ended  June 30, 1997, the Company's earning assets
averaged  $134.1  million and had an average yield of 9.54%.  This compares to
average  earning  assets  of  $110.9 million for the first six months of 1996,
yielding  approximately  8.88%.    Thus,  the  significant  contributor to the
increase  in  interest  income  of  $1.4 million or 29% between the six months
ended  June  30,  1996 and 1997 is the increase in volume of earning assets of
20%,  combined  with  the  66  basis  point  increase  in  average  yield.

     Consolidated  loans  averaged  approximately 80% of the Company's average
earning  assets.    The  majority of the Company's loans are tied to the prime
rate  (approximately  60% of the Bank's portfolio is at floating rates), which
averaged  8.38%  and  8.30%  for  the six months ended June 30, 1997 and 1996,
respectively.   During the first six months of 1997, the Bank's loans averaged
$105.2  million,  yielding  an  average  of  9.13%, compared to $81.1 million,
yielding  an  average of 8.91% for the first six months of 1996.  The increase
in the average yield on the Bank's loans is related to higher pricing on loans
originated  during  the latter half of 1996 and into 1997, combined with the 8
basis  point  increase  in  the average prime lending between the two periods.
The  increase in average yield of the Finance Company loans contributed to the
higher  consolidated  average yield on loans which increased to 10.47% for the
first  six  months of 1997 compared to 9.92% for the first six months of 1996.
The higher level of average loans, combined with the increase in average rate,
resulted  in  an  increase  in  consolidated  interest income on loans of $1.5
million  or  37%.

     Investment  securities  averaged  $18.9 million or 14% of average earning
assets and yielded 6.35% (tax equivalent basis) during the first six months of
1997,  compared  to average securities of $22.4 million yielding 5.90% for the
six  months  ended  June  30,  1996.  The increase in the average yield of the
investment portfolio is related to the timing, maturity distribution and types
of  securities  purchased during the latter half of 1996 and into 1997 as well
as  the  maturities  of  some investments at lower than current market yields.
The  16%  decrease  in  average  securities  (which  was  primarily related to
maturities  of  the  holding  company's  securities  being  reinvested  in
intercompany  borrowings) was offset somewhat by the increase in average rate,
and  resulted  in  the decrease of interest income on securities of $77,000 or
12%.

INTEREST  EXPENSE
     The Company's interest expense for the six months ended June 30, 1997 was
$2.9  million.   The increase of 22% from the comparable six months in 1996 of
$2.4  million  was  related  to  the  20%  increase  in  average  volume  of
interest-bearing liabilities, combined with the increase in average rate of 11
basis  points.    Interest-bearing liabilities averaged $113.0 million for the
first  six  months  of  1997  with an average rate of 5.20%.  This compares to
average  interest-bearing liabilities of $94.4 million with an average rate of
5.09%  for  the  six  months ended June 30, 1996.  The increase in the average
rate  was the result of (1) the higher level of general interest rates in 1997
as compared to 1996 and (2) the increase in rates paid on money market deposit
accounts  and  certificates  of  deposit  in  1997  for promotions to increase
deposits  required  to  meet  the  loan  growth  demand.

PROVISION  FOR  LOAN  LOSSES
     As  previously discussed under the quarterly analysis, the amount charged
to  the provision for loan losses by the Bank and the Finance Company is based
on  management's  judgment as to the amounts required to maintain an allowance
adequate  to  provide  for  potential  losses  in  the  loan  portfolio.

     Included  in  the  net income for the six months ended June 30, 1997 is a
provision  for loan losses of $211,000 compared to a provision of $186,000 for
the  first  six  months  of 1996.  The increase in the provision is related to
higher  originations  for  the  six  month period of 1997 as compared to 1996,
combined  with  the higher level of activity and past due loans of the Finance
Company  between the two periods as the loans of the Finance Company generally
have  higher  risk  and  are  therefore  provided  for  at  a  higher  level.

     At  June  30,  1997,  the consolidated allowance for loan losses was $1.7
million  or 1.48% of total gross loans.  This compares to an allowance of $1.3
million  or  1.45%  of gross loans at June 30, 1996.  For the six months ended
June  30,  1997,  the  Company reported net charge-offs of $26,000, which is a
result  of  the  Finance  Company  net charge-offs of $80,000 (2.6% of average
consolidated  loans) combined with the Bank's net recoveries for the first six
months  of 1997 of ($54,000).  This is compared to consolidated net recoveries
of  previously  charged-off  loans  of ($500) for the comparable six months of
1996.

OTHER  INCOME  AND  EXPENSES
     Other income, which is primarily related to service charges on customers'
deposit  accounts;  credit  card  interchange  fees;  merchant  discount fees;
commissions  on  nondeposit  investment  product  sales  and insurance product
sales;  and  mortgage  origination fees, was $494,000 for the six months ended
June  30,  1997  compared  to  $501,000 for the first six months of 1996, or a
decrease  of  1%.  The majority of the decrease is related to the lower volume
of  nondeposit sale transactions generating commission income in the first six
months  of  1997  as  compared  to  1996.

     For the six months ended June 30, 1997, total overhead expenses were $2.5
million  which  is  an  increase  of  18% over the amount incurred for the six
months  ended  June  30,  1996  of  $2.1  million.   The most significant item
included  in  other expenses is salaries, wages and benefits which amounted to
$1.3  million  for  the  six  months  ended  June 30, 1997 as compared to $1.1
million  for  the six months ended June 30, 1996.  The increase of $192,000 or
17%  is  a  result  of (1) normal annual raises; and (2) the Finance Company's
operations  which  increased $159,000 or 59% related to the additional offices
and staff (approximately 7 new employees) between the first six months of 1996
and  1997.  The Finance Company's operations accounted for 83% of the increase
in  salaries  and benefits for the first six months of 1997 as compared to the
prior  year.

     The  22%  ($42,000)  increase  in occupancy expenses and the 9% ($17,000)
increase  in  furniture, fixtures, and equipment ("FFE") between the first six
months  of  1996 and 1997 are primarily related to an $8,000 vault door repair
at  the  Bank during the first six months of 1997, and the additional branches
of  the  Finance  Company  in  the first six months of 1997 as compared to the
prior  year.

     Included  in  the  line  item "other operating expenses", which increased
$142,000  or  24%  from the comparable six months of 1996, are charges for OCC
assessments;  property  and  bond  insurance; Relay/Cirrus switch fees; credit
card  expenses; professional services; education and seminars; advertising and
public relations; and other branch and customer related expenses.  These items
are  related  directly  to  the  normal operations of the Bank and increase in
relation  to  the  increase in assets, the higher level of transaction volume,
and the larger number of customer accounts.  The Bank's activity accounted for
$55,000  or  39%  of  the  increase  and, in addition to normal volume-related
activity  had  increases in advertising due to several new deposit promotions;
expenses  for  the  check  card  product  introduced  in  1997;  and  higher
professional  and  outside  service  fees  related  to  additional  consulting
engagements  during  1997.

     Also  included in the line item "other operating expenses" is activity of
the  Finance  Company which includes charges for credit reports, license fees,
acquisition premium amortization, and office support.  These items increase in
relation  to the volume of activity, number of branches and number of customer
accounts.    The  Finance Company increased the number of its branches between
June  1996  and  1997  by  33%.

INCOME  TAXES
     For  the six months ended June 30, 1997, the Company reported $430,000 in
income  tax  expense,  or an effective tax rate of 36.8%.  This is compared to
income  tax  expense of $262,000 for the same six months of the prior year, or
an  effective  tax  rate  of  38%.    The  reduction  in the effective rate is
primarily related to the increase in tax-free municipal investments in 1997 as
compared  to  the  prior  year.



LIQUIDITY
     Liquidity  management  involves meeting the cash flow requirements of the
Company.  The Company must maintain an adequate liquidity position in order to
respond  to  the  short-term  demand  for funds caused by the withdrawals from
deposit  accounts,  maturities  of repurchase agreements, extensions of credit
and  for  the payment of operating expenses.  Maintaining an adequate level of
liquidity  is accomplished through a combination of liquid assets, those which
can  easily be converted into cash, and access to additional sources of funds.
The Company's primary liquid assets are cash and due from banks, federal funds
sold,  unpledged  investment  securities  available for sale, other short-term
investments and maturing loans.  The Company's primary liquid assets accounted
for 15% and 20% of average assets at June 30, 1997 and 1996, respectively.  In
management's  opinion,  the  Company maintains adequate levels of liquidity by
retaining liquid assets and assets which can easily be converted into cash and
by  maintaining  access  to  various sources of funds.  The primary sources of
funds  available through the Bank include borrowing on a short-term basis from
the  Federal  Home  Loan  Bank  and Federal Reserve System, purchasing federal
funds  from  other  financial institutions, and increasing deposits by raising
rates  paid.

     The Company's core deposits consist of consumer non-jumbo (i.e. less than
$100,000)  time  deposits,  and  consumer and commercial savings accounts, NOW
accounts,  money  market  accounts, and checking accounts.  Although such core
deposits are becoming increasingly more costly and interest sensitive for both
the  Company  and  the  industry  as  a  whole, such core deposits continue to
provide  the  Company  with a large and stable source of funds.  Core deposits
averaged 72% and 69% of earning assets during the first six months of 1997 and
1996, respectively.  The Company closely monitors its reliance on certificates
of  deposits greater than $100,000, which are generally considered less stable
and  more interest rate sensitive than core deposits.  Certificates of deposit
in  excess  of  $100,000, which represented 21% of total deposits at both June
30,  1997  and  1996, are held primarily by customers in the Company's service
area  who  have  dealt  with  the Company for an extended period of time.  The
Company  has  no  brokered  deposits.

     Summit  Financial  Corporation  ("Summit  Financial"), the parent holding
company,  has limited liquidity needs.  Summit Financial requires liquidity to
pay limited operating expenses, to service its debt, and to provide funding to
its  consumer  finance subsidiary, Freedom Finance.  Summit Financial has $1.8
million  in available liquidity remaining from its initial public offering and
the  retention of earnings.  All of this liquidity was advanced to the Finance
Company  to  fund  its  operations  as  of June 30, 1997.  In addition, Summit
Financial  has available lines of credit totaling $3 million with unaffiliated
financial  institutions,  of  which  all  was  available  at June 30, 1997.  A
further  source of liquidity for Summit Financial includes management fees and
debt  service  which  are  paid  by  its  subsidiary  on  a  monthly  basis.

     Liquidity  needs  of  Freedom  Finance, primarily for the funding of loan
originations,  acquisitions,  and  operating  expenses, have been meet to date
through  the  initial capital investment of $500,000 made by Summit Financial,
borrowings  from  an unrelated private investor, and line of credit facilities
provided  by  Summit  Financial  and Summit National Bank, its sister company.

     The  Company's  management believes its liquidity sources are adequate to
meet  its  operating  needs  and  does  not  know  of  any  trends,  events or
uncertainties that may result in a significant adverse affect on the Company's
liquidity  position.



CAPITAL  RESOURCES
     To  date,  the  capital  needs  of  the Company have been met through the
retention  of  net  income  and  from  the proceeds of its initial offering of
common  stock.    The  Company believes that the rate of asset growth will not
negatively  impact  the capital base.  Total equity at June 30, 1997 was $12.4
million.    The  Company  has  no  commitments  or  immediate  plans  for  any
significant  capital  expenditures outside the normal course of business.  The
Company's management does not know of any trends, events or uncertainties that
may  result  in  the  Company's  capital  resources  materially  increasing or
decreasing.

     The  Company  and  the  Bank  are  subject  to various regulatory capital
requirements  administered  by  the federal banking agencies.  Failure to meet
minimum  capital  requirements  can  initiate  certain  mandatory and possibly
additional discretionary actions by regulators that, if undertaken, could have
a  material  effect  on  the  financial  statements.    Under capital adequacy
guidelines  and  the  regulatory  framework  for prompt corrective action, the
Company  and  the  Bank  must  meet  specific  capital guidelines that involve
quantitative  measures of the Company's and the Bank's assets, liabilities and
certain  off-balance  sheet  items  as  calculated under regulatory accounting
practices.    The  Company's and the Bank's capital amounts and classification
are  also subject to qualitative judgments by the regulators about components,
risk  weightings,  and  other  factors.

     Quantitative  measures  established  by  regulation  to  ensure  capital
adequacy  require  the  Company  and  the Bank to maintain minimum amounts and
ratios  (set forth in the table below) of total and Tier 1 capital (as defined
in  the  regulation) to risk-weighted assets (as defined) and to total assets.
Management  believes,  as of June 30, 1997, that the Company and the Bank meet
all capital adequacy requirements to which they are subject.  At June 30, 1997
and  1996,  the  Company  and  the  Bank  are  both  categorized  as  "well
capitalized"under  the  regulatory framework for prompt corrective action.  To
be  categorized  as "well capitalized", the Company and the Bank must maintain
minimum total risk-based, Tier 1 risk-based, and Tier 1 leverage ratios as set
forth  in  the  table  below.   There are no current conditions or events that
management  believes  would  change  the  Company's  or  the  Bank's category.

     The  following table presents the Company's and the Bank's actual capital
amounts  (dollars  in  thousands)  and  ratios at June 30, 1997 as well as the
minimum  calculated  amounts  for  each  regulatory  defined  category.

<TABLE>
<CAPTION>



                                    For Capital               To Be
                   Actual             Adequacy             Categorized
                                      Purposes                "Well
                                                          Capitalized"
                                                          -------------     
                   Actual   Ratio      Amount     Ratio      Amount      Ratio
                   -------  ------  ------------  ------  -------------  ------
<S>                <C>      <C>     <C>           <C>     <C>            <C>

Total Qualifying
 Capital to Risk-
 Weighted Assets:
     Company       $13,920  11.62%  $      9,585   8.00%  $      11,981  10.00%
     Bank          $11,886  10.14%  $      9,373   8.00%  $      11,717  10.00%
Tier 1 Capital to
 Risk-Weighted
 Assets:
     Company       $12,422  10.37%  $      4,792   4.00%  $       7,189   6.00%
     Bank          $10,421   8.89%  $      4,687   4.00%  $       7,030   6.00%
Tier 1 Capital to
 Average Assets:
     Company       $12,422   8.87%  $      5,601   4.00%  $       7,002   5.00%
     Bank          $10,421   7.41%  $      5,629   4.00%  $       7,036   5.00%

</TABLE>





EFFECT  OF  INFLATION  AND  CHANGING  PRICES
     The  consolidated  financial  statements have been prepared in accordance
with generally accepted accounting principles which require the measurement of
financial  position  and results of operations in terms of historical dollars,
without  consideration  of  changes in the relative purchasing power over time
due  to  inflation.

     Unlike most other industries, virtually all of the assets and liabilities
of  a  financial  institution  are  monetary in nature.  As a result, interest
rates  generally  have  a more significant effect in a financial institution's
performance  than  does  the  effect  of  inflation.

     The  yield  on  a  majority  of  the  Company's  earning  assets  adjusts
simultaneously  with  changes in the general level of interest rates.  Most of
the Company's liabilities are issued with fixed terms and can be repriced only
at  maturity.   During periods of rising interest rates, as experienced at the
end of the first quarter of 1997, the Company's assets reprice faster than the
supporting  liabilities.    This causes an increase in the net interest margin
until the fixed rate deposits mature and are repriced at higher current market
rates,  thus  narrowing  the  difference between what the Company earns on its
assets  and  what  it  pays  on  its liabilities.  Given the Company's current
balance  sheet  structure,  the  opposite  effect  (that is, a decrease in net
interest  income)  is  realized  in a falling rate environment.  The degree of
interest  rate  sensitivity  of  the  Company's assets and liabilities and the
differences  in  timing  of  repricing  assets  and  liabilities  provides  an
indication  of  the  extent  to which the Company's net interest income may be
affected  by  interest  rate  movements.





ACCOUNTING,  REPORTING  AND  REGULATORY  MATTERS
     In  December  1996,  the  Financial  Accounting  Standards Board ("FASB")
issued Statement of Financial Accounting Standards ("SFAS") No. 127, "Deferral
of  the Effective Date of Certain Provisions of SFAS No. 125", an amendment to
SFAS No. 125 whish was effective December 31, 1996.  This statement delays the
effective  date of certain provisions of SFAS No. 125 until December 31, 1997.
The  amended  provisions  included those related to the transfers of financial
assets  and  secured  borrowings.    The provisions in SFAS No. 125 related to
servicing  assets  and  liabilities  are  not  delayed by this amendment.  The
adoption  of  this  standard  did  not have a material effect on the Company's
financial  statements.

     In  February  1997,  the  FASB issued SFAS No. 128, "Earnings per Share",
which  is  effective for both interim and annual periods ending after December
15,  1997.   This statement supersedes Accounting Principles Board Opinion No.
15,  "Earnings  per  Share".    The  purpose  of this statement is to simplify
current  reporting  and  make  U.S.  reporting  comparable  to  international
standards.   The statement requires dual presentation of basic and diluted EPS
by  entities  with  complex  capital structures (as defined by the statement).
The  Company  anticipates  that  adoption  of  this  standard  will not have a
material  effect  on  EPS.

     Also,  in  February  1997,  the  FASB issued SFAS No. 129, "Disclosure of
Information  about  Capital  Structure",  which  is  effective  for  financial
statements for periods ending after December 31, 1997.  This statement applies
to  both  public and nonpublic entities.  The new statement requires no change
for  entities  subject  to the existing requirements.  The Company anticipates
that adoption of this standard will not have a material effect on the Company.

     In  June  1997,  the  FASB  issued SFAS No. 130, "Reporting Comprehensive
Income",  which  establishes  standards  for  reporting  and  display  of
comprehensive  income  and  its  components  in  a full set of general purpose
financial  statements.    Under  this  statement,  enterprises are required to
classify  items  of  "other  comprehensive  income"  by  their  nature  in the
financial  statement  and  display  the  balance of other comprehensive income
separately  in  the  equity  section  of  a  statement  of financial position.
Statement 130 is effective for both interim and annual periods beginning after
December  15,  1997.    Comparative  financial statements provided for earlier
periods  are  required  to  be  reclassified  to reflect the provisions of the
statement,  The  Company will adopt Statement 130 effective March 31, 1998 and
will  provide  the  required  disclosures  in  the  Company's  Form  10-Q.

     Also  in  June  1997,  the  FASB  issued SFAS No. 131, "Disclosures about
Segments  of  an  Enterprise  and  Related  Information".    This  statement
establishes standards for the way public enterprises are to report information
about  operating  segments  in  annual financial statements and requires those
enterprises to report selected information about operating segments in interim
financial  reports  issued  to  shareholders.   Statement 131 is effective for
financial  statements  for  periods beginning after December 15, 1997.  In the
initial  year  of application, comparative information for earlier years is to
be  restated,  unless  it is impractical to do so.  It is not anticipated that
the  adoption  of  this statement will materially effect the Company's current
method  of  financial  reporting.

<PAGE>
                         SUMMIT FINANCIAL CORPORATION

                          PART II. OTHER INFORMATION



Item  1.          Legal  Proceedings.

The  Corporation  and  its  subsidiaries  from  time to time and currently are
involved  as  plaintiff  or defendant in various legal actions incident to its
business.    There  are  no  material  actions  currently  pending.

Item  2.          Changes  in  Securities.

          None.

Item  3.          Defaults  Upon  Senior  Securities.

          None.

Item  4.          Submission  of  Matters  to  a  Vote  of  Security  Holders.

          No matters were submitted to the shareholders for a vote at any time
during  the  quarter.

Item  5.          Other  Information.

          None.

Item  6.          Exhibits  and  Reports  on  Form  8-K.

          (a)          Exhibits:

               27.1  Financial  Data  Schedule

          (b)          Reports  on  Form  8-K:

               None.


<PAGE>
                         SUMMIT FINANCIAL CORPORATION

                                  SIGNATURES



Pursuant  to  the  requirements  of  the  Securities Exchange Act of 1934, the
registrant  has  duly  caused  this  report  to be signed on its behalf by the
undersigned  thereunto  duly  authorized.

                                                  SUMMIT FINANCIAL CORPORATION


Dated:  August  12,  1997                              /s/  J. Randolph Potter
                                                       -----------------------
                                                 J. Randolph Potter, President
                                                   and Chief Executive Officer


Dated:  August  12,  1997                             /s/ Blaise B. Bettendorf
                                                      ------------------------
                                                  Blaise B. Bettendorf, Senior
                                                      Vice President and Chief
                                                             Financial Officer