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  March  31,  1998

                      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)

                              (864)  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  April  30, 1998, 1,441,510 shares of $1.00 par value common stock were
outstanding.


<PAGE>

<TABLE>
<CAPTION>

                         SUMMIT FINANCIAL CORPORATION
                          CONSOLIDATED BALANCE SHEETS
                            (Dollars in Thousands)
                                  (Unaudited)

                                                  March 31,     December 31,
                                                     1998           1997
                                                 ------------  --------------
<S>                                              <C>           <C>
ASSETS
Cash and short-term interest-bearing deposits .  $     9,449   $       6,441 
Federal funds sold. . . . . . . . . . . . . . .        4,730           2,920 
Investments available for sale (amortized cost.       27,841          28,213 
 of $27,642 and $28,077
Investments in stock of Federal Reserve Bank, .          792             708 
 FHLB and other, at cost
Loans, net of unearned income and net of
 allowance for loan losses of $1,742 and $1,728      114,661         117,027 
Premises and equipment, net . . . . . . . . . .        2,294           2,360 
Accrued interest receivable . . . . . . . . . .          946           1,168 
Other assets. . . . . . . . . . . . . . . . . .        1,339           1,442 
                                                 ------------  --------------
                                                 $   162,052   $     160,279 
                                                 ============  ==============
  LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits:
 Demand . . . . . . . . . . . . . . . . . . . .  $    18,216   $      17,679 
 Interest-bearing demand. . . . . . . . . . . .        5,311           6,249 
 Savings and money market . . . . . . . . . . .       41,659          37,355 
 Time deposits, $100,000 and over . . . . . . .       27,712          29,495 
 Other time deposits. . . . . . . . . . . . . .       49,370          50,150 
                                                 ------------  --------------
                                                     142,268         140,928 
Securities sold under repurchase agreements . .          814             803 
Other borrowings. . . . . . . . . . . . . . . .        3,000           3,000 
Accrued interest payable. . . . . . . . . . . .        1,148           1,370 
Other liabilities . . . . . . . . . . . . . . .          971             809 
                                                 ------------  --------------
                                                     148,201         146,910 
                                                 ------------  --------------
Shareholders' equity:
 Common stock, $1.00 par value; 20,000,000. . .                            
  shares authorized; issued and . . . . . . . .                            
  outstanding 1,441,510 and 1,438,424 shares. .        1,442           1,438 
 Additional paid-in capital . . . . . . . . . .       12,371          12,346 
 Retained earnings. . . . . . . . . . . . . . .          415             -  
 Nonvested restricted stock . . . . . . . . . .         (505)           (505)
 Accumulated other comprehensive income . . . .          128              90 
                                                 ------------  --------------
     Total shareholders' equity . . . . . . . .       13,851          13,369 
                                                 ------------  --------------
                                                 $   162,052   $     160,279 
                                                 ============  ==============
<FN>

SEE  NOTES  TO  CONSOLIDATED  FINANCIAL  STATEMENTS
</TABLE>

<PAGE>

<TABLE>
<CAPTION>

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


                                                 For the Three Months Ended
                                                          March 31,
                                                       ---------------        
                                                     1998            1997
                                                ---------------  ------------
                                                  (Unaudited)    (Unaudited)
<S>                                             <C>              <C>
Interest Income:
 Loans . . . . . . . . . . . . . . . . . . . .  $        3,009   $     2,673 
 Taxable investment securities . . . . . . . .             346           267 
 Nontaxable investment securities. . . . . . .              84             8 
 Federal funds sold. . . . . . . . . . . . . .              68            71 
 Other . . . . . . . . . . . . . . . . . . . .              42            41 
                                                ---------------  ------------
                                                         3,549         3,060 
                                                ---------------  ------------
Interest Expense:
 Deposits. . . . . . . . . . . . . . . . . . .           1,631         1,339 
 Other . . . . . . . . . . . . . . . . . . . .              55            61 
                                                ---------------  ------------
                                                         1,686         1,400 
                                                ---------------  ------------
     Net interest income . . . . . . . . . . .           1,863         1,660 
Provision for loan losses. . . . . . . . . . .             (50)          (87)
                                                ---------------  ------------
     Net interest income after
      provision for loan losses. . . . . . . .           1,813         1,573 
                                                ---------------  ------------

Other Income:
 Service charges and fees on deposit accounts.              41            49 
 Credit card service fees and income . . . . .              76            60 
 Insurance commission fee income . . . . . . .             101            50 
 Other income. . . . . . . . . . . . . . . . .             164            80 
                                                ---------------  ------------
                                                           382           239 
                                                ---------------  ------------
Other Operating Expenses:
 Salaries, wages and benefits. . . . . . . . .             837           691 
 Occupancy . . . . . . . . . . . . . . . . . .             112           113 
 Furniture, fixtures and equipment . . . . . .             144           106 
 Other operating expenses. . . . . . . . . . .             452           364 
                                                ---------------  ------------
                                                         1,545         1,274 
                                                ---------------  ------------
Net income before income taxes . . . . . . . .             650           538 
Provision for income taxes . . . . . . . . . .            (235)         (199)
                                                ---------------  ------------
Net income . . . . . . . . . . . . . . . . . .             415           339 
                                                ---------------  ------------
Other comprehensive income, net of tax:
  Unrealized net gain on investments
   available for sale, net of income
   taxes of $25 and ($39). . . . . . . . . . .              38           (83)
                                                ---------------  ------------
Comprehensive income . . . . . . . . . . . . .  $          453   $       256 
                                                ===============  ============

Net income per share:
   Basic . . . . . . . . . . . . . . . . . . .  $          .29   $       .24 
   Diluted . . . . . . . . . . . . . . . . . .  $          .25   $       .22 
Average shares outstanding:
   Basic . . . . . . . . . . . . . . . . . . .       1,440,000     1,409,000 
   Diluted . . . . . . . . . . . . . . . . . .       1,692,000     1,524,000 

<FN>

SEE  NOTES  TO  CONSOLIDATED  FINANCIAL  STATEMENTS
</TABLE>


<PAGE>

<TABLE>
<CAPTION>

                                 SUMMIT FINANCIAL CORPORATION
                       CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY
                      FOR THE THREE MONTHS ENDED MARCH 31, 1998 AND 1997
                                    (Dollars in Thousands)
                                         (Unaudited)


                                                               Accumulated         
                                                                  other                Total
                                           Additional             compre-  Nonvested   share
                                     Common  paid-in   Retained   hensive restricted  holders'
                                     stock   capital   earnings   income     stock    equity
                                     ------  --------  ---------  --------  -------  --------
<S>                                  <C>     <C>       <C>        <C>       <C>      <C>
Balance at December 31, 1996. . . .  $1,335  $ 10,254  $      48        -        -   $11,637 
Net income for the three months
 ended March 31, 1997 . . . . . . .       -         -        339        -        -       339 
Change in unrealized net gain
 on investment securities available
 for sale . . . . . . . . . . . . .       -         -          -      (83)       -       (83)
Employee stock options exercised. .       8        38          -        -        -        46 
                                     ------  --------  ---------  --------  -------  --------
Balance at March 31, 1997 . . . . .  $1,343  $ 10,292  $     387     ($83)  $    0   $11,939 
                                     ======  ========  =========  ========  =======  ========

Balance at December 31, 1997. . . .  $1,438  $ 12,346          -  $    90    ($505)  $13,369 
Net income for the three months
 ended March 31, 1998 . . . . . . .       -         -        415        -        -       415 
Change in unrealized net gain
 on investment securities available
 for sale . . . . . . . . . . . . .       -         -          -       38        -        38 
Employee stock options exercised. .       4        25          -        -                 29 
                                     ------  --------  ---------  --------  -------  --------
Balance at March 31, 1998 . . . . .  $1,442  $ 12,371  $     415  $   128    ($505)  $13,851 
                                     ======  ========  =========  ========  =======  ========

<FN>

SEE  NOTES  TO  CONSOLIDATED  FINANCIAL  STATEMENTS
</TABLE>

<PAGE>

<TABLE>
<CAPTION>

                             SUMMIT FINANCIAL CORPORATION
                         CONSOLIDATED STATEMENTS OF CASH FLOWS
                                (Dollars in Thousands)


                                                          For the Three Months Ended
                                                                   March 31,
                                                                ---------------        
                                                              1998            1997
                                                         ---------------  ------------
                                                           (Unaudited)    (Unaudited)
<S>                                                      <C>              <C>
Cash flows from operating activities:
 Net income . . . . . . . . . . . . . . . . . . . . . .  $          415   $       339 
Adjustments to reconcile net income to net cash
 provided by operating activities:
    Provision for loan losses . . . . . . . . . . . . .              50            87 
    Depreciation and amortization . . . . . . . . . . .             116            83 
    Gain on sale investments available for sale . . . .              (1)            0 
    Net (accretion) amortization of net (discount)
     premium on investments . . . . . . . . . . . . . .             (17)            4 
    (Decrease) increase in other assets . . . . . . . .             325          (113)
    (Decrease) increase in other liabilities. . . . . .             (85)          220 
                                                         ---------------  ------------
Net cash provided by operating activities . . . . . . .             803           620 
                                                         ---------------  ------------

Cash flows from investing activities:
  Purchases of securities available for sale. . . . . .            (750)       (1,694)
  Proceeds from maturities of securities
   available for sale . . . . . . . . . . . . . . . . .             252         1,337 
  Proceeds from sales of securities available for sale.             951             - 
  Purchases of Federal Home Bank Stock. . . . . . . . .             (84)          (58)
  Net decrease (increase) in loans. . . . . . . . . . .           2,315        (3,109)
  Purchases of net finance loans receivable . . . . . .               -          (499)
  Purchases of fixed assets . . . . . . . . . . . . . .             (49)         (101)
                                                         ---------------  ------------
Net cash provided by (used in) investing activities . .           2,635        (4,124)
                                                         ---------------  ------------

Cash flows from financing activities:
  Net increase in deposit accounts. . . . . . . . . . .           1,340         5,028 
  Net increase in securities sold under
   repurchase agreements. . . . . . . . . . . . . . . .              11            10 
  Advances from other borrowings. . . . . . . . . . . .           2,500         1,000 
  Repayment of other borrowings . . . . . . . . . . . .          (2,500)          (50)
  Proceeds from stock issuance pursuant
   to employee stock option plan. . . . . . . . . . . .              29            46 
                                                         ---------------  ------------
Net cash provided by financing activities . . . . . . .           1,380         6,034 
                                                         ---------------  ------------
Net increase (decrease) in cash and cash equivalents. .           4,818         2,530 
Cash and cash equivalents, beginning of period. . . . .           9,361         9,026 
                                                         ---------------  ------------
Cash and cash equivalents, end of period. . . . . . . .  $       14,179   $    11,556 
                                                         ===============  ============

SUPPLEMENTAL INFORMATION:
Cash paid during the period for interest. . . . . . . .  $        1,908   $     1,317 
Cash paid during the period for income taxes. . . . . .  $           36   $        44 
Change in market value of investment securities
 available for sale, net of income taxes. . . . . . . .  $           38          ($83)

<FN>

SEE  NOTES  TO  CONSOLIDATED  FINANCIAL  STATEMENTS
</TABLE>


<PAGE>

                           SUMMIT FINANCIAL CORPORATION
           CONDENSED  NOTES  TO  CONSOLIDATED  FINANCIAL  STATEMENTS
                                MARCH 31, 1998

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.   In 1997, the Bank incorporated Summit Investment
Services,  Inc.  as a wholly-owned subsidiary to provide an increased level of
nondeposit  products  and  financial  management  services.

     Through its bank subsidiary, which commenced operations in July 1990, the
Company  provides  a full range of banking services, including demand and time
deposits,  commercial  and  consumer loans, and investment services.  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,  short-term  installment  loans  and related credit insurance
products  to  individuals  from  its twelve offices throughout South Carolina.

     The  unaudited  consolidated financial statements of the Company at March
31,  1998  and  for the periods ended March 31, 1998 and 1997 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 March
31,  1998,  and the results of operations and cash flows for the periods ended
March 31, 1998 and 1997 have been included.  The results for the quarter ended
March  31,  1998  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, 1997 included in the Company's
1997  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 $14,179 and $9,361 at March 31, 1998
and  1997,  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.

NOTE  3  -  COMPREHENSIVE  INCOME:
     Effective  January  1,  1998,  the  Company  adopted  the  provisions  of
Statement  of  Financial  Accounting  Standards  ("SFAS")  No. 130, "Reporting
Comprehensive  Income".    In  accordance with the provisions of SFAS No. 130,
comparative  financial  statements  presented  for  earlier  periods have been
reclassified  to  reflect  the  provisions  of  this Statement.  Comprehensive
income  is  the  change  in  the  Company's  equity  during  the  period  from
transactions  and  other  events  and  circumstances.  Comprehensive income is
divided  into net income and other comprehensive income.  The Company's "other
comprehensive  income"  for the three months ended march 31, 1998 and 1997 and
"accumulated  other  comprehensive  income"  as of March 31, 1998 and 1997 are
comprised solely of unrealized gains and losses on certain investments in debt
and  equity  securities.

<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).    In  1997,  the Bank incorporated Summit Investment
Services,  Inc.  as a wholly-owned subsidiary to provide an increased level of
nondeposit  products  and  financial  management  services.

     During the quarter ended March 31, 1998, the Company's net income totaled
$415,000  or  $.25  per  diluted  share.    This  is compared to net income of
$339,000 or $.22 per diluted share for the same quarterly period of 1997 or an
increase  of  23%.

     Total assets increased approximately $1.8 million or 1% from December 31,
1997  to  March 31, 1998.  Deposits increased approximately $1.3 million or 1%
during  the period.  Gross loans decreased $2.4 million (2%) from year end due
primarily  to  several  loan  payoffs and fewer loan originations in the first
quarter  of  1998 as compared to the prior year.  Management does not consider
this  decline  in  loans  a  permanent  trend.

RESULTS  OF  OPERATIONS  - COMPARISON OF THE THREE MONTHS ENDED MARCH 31, 1998
AND  1997

GENERAL
     The  Company reported consolidated net income for the quarter ended March
31, 1998 of $415,000, compared to net income of $339,000 for the quarter ended
March  31,  1997,  or  an  improvement  of  approximately $76,000 or 23%.  The
increase  in  consolidated  earnings  for  the  1998  period  is  primarily
attributable  to  (1) a $204,000 or 12% increase in the Company's net interest
income  related  to  the higher level of earning assets in 1998 as compared to
the prior year, (2) a reduction in the provision for loan losses for the first
quarter  of  1998  as  compared  to  the  prior year due to the lower net loan
originations  for  the  1998 quarter, and (3) the 60% increase in other income
related  to  higher  insurance  and  nondeposit  product  commission  fees and
mortgage  referral  fees.  The increases are somewhat offset by a 21% increase
in  other  operating  expenses.

     Summit  National  Bank  recorded net earnings of $386,000 for the quarter
ended  March  31, 1998 which was a 20% increase from the first quarter of 1997
earnings of $322,000.  The increase in net income for this subsidiary resulted
primarily  from  a  $215,000  (17%) increase in the Bank's net interest income
which  was  directly  related  to  a  19%  higher  level  of  earning  assets.

     The  Company's  consumer  finance  subsidiary,  Freedom  Finance,  Inc.,
recorded net income for the first quarter of 1998 of $19,000 compared to a net
loss  of ($2,000) for the first quarter of 1997.  The lower operating expenses
related  to  reduced  salaries  and  benefits and the lower provision for loan
losses due to fewer charge-offs in 1998 as compared to the same period of 1997
were  the  primary  contributors  to  the  increase  in  net  income  in 1998.

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 March 31,
1998, the Company recorded consolidated net interest income of $1.9 million, a
12%  increase  from  the  net  interest income of $1.7 million for the quarter
ended  March 31, 1997.  The increase in this amount is directly related to the
increase in the average earning asset and interest-bearing liability volume of
the  Company  of  19% and 17%, respectively, offset somewhat by the decline in
net  interest  margin  for  the  Company.

     For  the  quarters  ended  March  31,  1998  and  1997,  the  Company's
consolidated  net  interest margin was 5.03% and 5.17%, respectively.  The net
interest  margin  is  calculated  as annualized net interest income divided by
year-to-date  average  earning  assets.    The  decrease  in  consolidated net
interest margin is related primarily to the higher average cost of liabilities
as the Bank offered several promotional deposit rates, combined with the shift
of  earning  assets  to  lower  yielding  federal  funds  sold  and short-term
interest-bearing  deposits  as  the loan growth slowed in the first quarter of
1998.

INTEREST  INCOME
     For  the  quarter  ended  March  31,  1998,  the Company's earning assets
averaged  $153.6  million and had an average yield of 9.49%.  This compares to
average  earning  assets  of  $129.6  million  for  the first quarter of 1997,
yielding  9.53%.   Thus, the contributor to the increase in interest income of
$490,000  or  16%  between  the  quarters ended March 31, 1998 and 1997 is the
increase  in  volume  of earning assets of 18%, offset somewhat by the 4 basis
point  reduction  in  average  yield.

     Consolidated  loans  averaged  approximately 77% of the Company's average
earning  assets  for the first quarter of 1998.  The majority of the Company's
loans are tied to the prime rate (approximately 62% of the Bank's portfolio is
at  floating  rates),  which  averaged  8.50% and 8.27% for the quarters ended
March  31, 1998 and 1997, respectively.  During the first quarter of 1998, the
Bank's  loans  averaged  $116.1  million,  yielding  an average rate of 9.09%,
compared  to  $101.9  million, yielding an average of rate 9.00% for the first
quarter  of  1997.    The increase in the average yield on the Bank's loans is
primarily  related  to  the  increase  in  the  prime  lending rate, offset by
competitive  pricing  pressures  on  new  originations.    The higher level of
average  loans  (which  increased  14%), combined with the increase in average
rate,  resulted  in  an  increase  in consolidated interest income on loans of
$336,000  or  13%.

     Investment  securities  averaged  $28.1 million or 18% of average earning
assets  and  yielded  6.68% (tax equivalent basis) during the first quarter of
1998,  compared  to average securities of $17.9 million yielding 6.33% for the
quarter  ended  March  31,  1997.    The  increase in the average yield of the
investment portfolio is related to the timing, maturity distribution and types
of  securities  (primarily longer term municipals) purchased during the latter
half  of  1997  and into 1998 as well as the maturities of some investments at
lower  than  current  market  yields.  The 56% increase in average securities,
combined  with  the  increase  in  average  rate,  resulted in the increase of
interest  income  on  securities  of  $154,000.


INTEREST  EXPENSE
     The  Company's  interest expense for the quarter ended March 31, 1998 was
$1.7 million.  The increase of 20% from the comparable quarter in 1997 of $1.4
million  was related to the 17% increase in average volume of interest-bearing
liabilities,  combined  with  the increase in average rate of 13 basis points.
Interest-bearing  liabilities averaged $129.4 million for the first quarter of
1998 with an average rate of 5.28%.  This compares to average interest-bearing
liabilities  of  $110.4  million with an average rate of 5.15% for the quarter
ended  March 31, 1998.  The increase in the average rate was the result of (1)
the higher level of general interest rates in 1998 as compared to 1997 and (2)
the  increase  in rates paid on money market deposit accounts and certificates
of  deposit throughout 1997 and into 1998 for promotions to increase deposits.

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 March 31, 1998 is a
provision  for  loan  losses of $50,000 compared to a provision of $87,000 for
the  first  quarter of 1997.  The Company had no net loan growth for the first
quarter  of 1998 due to numerous large payoffs, fewer originations at the Bank
as  compared  to  prior  periods, and the expected payoffs of loans at Freedom
Finance  due to the seasonality of this subsidiary.  Based on the reduction in
gross  loans,  the  required provision decreased from the comparable period of
1997.

     At  March  31,  1998, the consolidated allowance for loan losses was $1.7
million  or 1.50% of total gross loans.  This compares to an allowance of $1.6
million  or  1.50%  of  gross  loans at March 31, 1997.  For the quarter ended
March  31,  1998,  the  Company reported net charge-offs of $37,000 or .12% of
average  loans  on  an annualized basis.  This is compared to consolidated net
charge-offs of $7,000 or .03% (annualized) of average loans for the comparable
quarter  of  1997.  There were no loans on nonaccrual status at March 31, 1998
and  nonaccrual loans for the prior year were $18,000.  Loans past due 90 days
and  greater  totaled  $75,000  or  0.06% of gross loans at March 31, 1998 and
$98,000 or .09% of gross loans at March 31, 1997.  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 March 31, 1998 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 $382,000 for the quarter ended March
31, 1998 compared to $239,000 for the first quarter of 1997, or an increase of
60%.  The increase is primarily related to a higher level of annuity and other
nondeposit  product  sales  generating  commission  income  and  mortgage loan
referral  fees  in  the  first  quarter  of  1998  as  compared  to  1997.

     For  the  quarter ended March 31, 1998, total overhead expenses were $1.5
million  which  is an increase of 21% over the amount incurred for the quarter
ended  March  31, 1997 of $1.3 million.  The most significant item included in
other  expenses is salaries, wages and benefits which amounted to $836,000 for
the quarter ended March 31, 1998 as compared to $691,000 for the quarter ended
March  31,  1997.    The increase of $145,000 or 21% is a result of (1) normal
annual  raises;  (2)  additional  staff  added  at  the Bank between the first
quarter  of  1997  and  March 31, 1998; (3) higher commission expense paid and
associated payroll taxes related to the higher nondeposit product sales in the
first quarter of 1998; (4) amortization of the compensation expense related to
restricted  stock  granted  in  late  1997;  and (5) additional bonus accruals
pursuant  to  the  Bank's  incentive  bonus  program.

     The  35% ($38,000) increase in furniture, fixtures, and equipment ("FFE")
between  the  first  quarter  of 1997 and 1998 is directly related to a higher
level  of  depreciation  at the Bank for fixed asset expenditures in the later
part  of  1997 and in anticipation of expenditures in 1998, primarily software
and  hardware related to technology upgrades and furnishings and equipment for
a  new  leased branch facility expected to open in the fourth quarter of 1998.

     Included  in  the  line  item "other operating expenses", which increased
$89,000  or  24%  from  the  comparable  quarter  of 1997, 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.  A majority
of  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  increased  29% and accounted for $73,000 or 82% of the increase and,
in  addition  to  normal  volume-related  activity,  reported (1) increases in
advertising  and  legal expenses related to the new branch expected to open in
the  fourth  quarter  of  1998; (2) higher expenses for the check card product
introduced  in mid-1997; (3) higher credit card expenses related to the volume
of  activity  in 1998 as compared to 1997; and (4) increased education expense
related  to  training  on  the  new software and hardware installed related to
technology  upgrades.


INCOME  TAXES
     For  the  quarter  ended March 31, 1998, the Company reported $235,000 in
income  tax  expense,  or  an  effective tax rate of 36%.  This is compared to
income  tax  expense of $199,000 for the same quarter of the prior year, or an
effective  tax  rate of 37%.  The reduction in the effective rate is primarily
related to the increase in tax-free municipal investments purchased throughout
1997.


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  16%  of  average assets at both March 31, 1998 and 1997.  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  70%  and 69% of earning assets during the first three months of 1998
and  1997,  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 19% and 21% of total
deposits  at  March  31,  1998  and  1997, respectively, 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 $1.3
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 March 31, 1998.  In addition, Summit
Financial  has  an  available  line  of  credit  totaling $2.2 million with an
unaffiliated  financial  institution,  all of which was available at March 31,
1998.    During  1997, Summit Financial entered into term loan agreements with
several  individuals  to  provide liquidity for funding the operating needs of
Freedom Finance.  These term loans totaled $500,000 at March 31, 1998 and have
various  maturities  throughout  1998.    Additional  sources of liquidity for
Summit  Financial  include  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 March 31, 1998 was $13.9
million.

     On  April  22,  1998,  the  Company  entered into an agreement to lease a
facility  for  a  branch  location  in  Greenville, South Carolina, subject to
regulatory  approval.  The facility is approximately 8,000 square feet and has
an  initial term of 7 years.  The lease requires initial monthly rent payments
of  $5,900 for a period of 4 years, at which time the rent increases to $6,492
per  month.   The agreement includes a renewal option for an additional 7 year
period  at substantially the same terms of the initial lease and for a monthly
rent of $6,492 throughout the renewal period.  The Company anticipates opening
the  branch  facility  by the fourth quarter of 1998.  Management believes the
current  capital  resources are adequate to meet the needs for the anticipated
branch  facility  and  related  furnishings  and  equipment.

     The  Company  has  no  other  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 average assets.
Management  believes, as of March 31, 1998, that the Company and the Bank meet
all  capital  adequacy  requirements  to which they are subject.  At March 31,
1998  and  1997,  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 March 31, 1998 as well as the
minimum  calculated  amounts  for  each  regulatory  defined  category.


<TABLE>
<CAPTION>

                        RISK-BASED CAPITAL CALCULATIONS


                                          FOR CAPITAL           TO BE 
                                            ADEQUACY         CATEGORIZED
                             ACTUAL         PURPOSES      "WELL-CAPITALIZED"
                         Actual   Ratio   Amount   Ratio   Amount   Ratio
                         -------  ------  -------  ------  -------  ------
<S>                      <C>      <C>     <C>      <C>     <C>      <C>
Total Capital to Risk-
Weighted Assets

     Company. . . . . .  $15,756  12.89%  $ 9,781   8.00%  $12,227  10.00%
     Bank . . . . . . .  $13,674  11.43%  $ 9,572   8.00%  $11,964  10.00%

Tier I Capital to Risk-
Weighted Assets

     Company. . . . . .  $14,228  11.64%  $ 4,891   4.00%  $ 7,336   6.00%
     Bank . . . . . . .  $12,178  10.18%  $ 4,786   4.00%  $ 7,179   6.00%

Tier I Capital to
Average Assets

     Company. . . . . .  $14,228   8.82%  $ 6,449   4.00%  $ 8,061   5.00%
     Bank . . . . . . .  $12,178   7.67%  $ 6,354   4.00%  $ 7,942   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.  Over 50%
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 in
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  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.




      ITEM 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

     Market risk is the risk of loss from adverse changes in market prices and
rates.    The Company's market risk arises principally from interest rate risk
inherent  in  its  lending,  deposit  and  borrowing  activities.   Management
actively  monitors  and manages its interest rate risk exposure.  Although the
Company  manages  other risks, as in credit quality and liquidity risk, in the
normal  course  of business, management considers interest rate risk to be its
most  significant  market  risk and change in interest rates could potentially
have  the  largest  material  effect  on the Company's financial condition and
results  of operations.  Other types of market risks, such as foreign currency
exchange rate risk and commodity price risk, do not arise in the normal course
of  the  Company's  business  activities.

     The  Company's  profitability  is  affected  by  fluctuations in interest
rates.  Management's goal is to maintain a reasonable balance between exposure
to interest rate fluctuations and earnings.  A sudden and substantial increase
in  interest  rates  may adversely impact the Company's earnings to the extent
that  the  interest  rates  on  interest-earning  assets  and interest-bearing
liabilities do not change at the same speed, to the same extent or on the same
basis.

     The  Bank's  Asset  Liability  Management Committee ("ALCO") monitors and
considers  methods  of  managing  the  rate  and  sensitivity  repricing
characteristics  of  the  balance sheet components consistent with maintaining
acceptable  levels  of changes in net portfolio value ("NPV") and net interest
income.    Net portfolio value represents the market value of portfolio equity
and  is  equal  to  the  market  value  of  assets  minus  the market value of
liabilities, with adjustments made for off-balance sheet items over a range of
assumed  changes in market interest rates.  A primary purpose of the Company's
asset  and liability management is to manage interest rate risk to effectively
invest  the  Company's  capital  and to preserve the value created by its core
business  operations.    As  such, certain management monitoring processes are
designed  to  minimize  the impact of sudden and sustained changes in interest
rates  on  NPV  and  net  interest  income.

     The  Company's  exposure  to interest rate risk is reviewed on a periodic
basis  by the Board of Directors and the ALCO.  Interest rate risk exposure is
measured  using  interest rate sensitivity analysis to determine the Company's
change  in  NPV  in  the  event  of  hypothetical  changes  in interest rates.
Further,  interest  rate  sensitivity  gap  analysis  is used to determine the
repricing  characteristics  of the Bank's assets and liabilities.  The ALCO is
charged  with  the  responsibility to maintain the level of sensitivity of the
Bank's  net  portfolio  value  within  Board  approved  limits.

     Interest  rate  sensitivity  analysis  is  used  to measure the Company's
interest  rate  risk  by  computing estimated changes in NPV of its cash flows
from  assets, liabilities, and off-balance sheet items in the event of a range
of  assumed changes in market interest rates.  This analysis assesses the risk
of  loss  in  market  risk  sensitive instruments in the event of a sudden and
sustained  100  - 400 basis points increase or decrease in the market interest
rates.    The  Company's  Board of Directors has adopted an interest rate risk
policy  which establishes maximum allowable decreases in NPV in the event of a
sudden  and  sustained  increase  or  decrease  in  market  interest  rates.

     As  of  March 31, 1998, there was no substantial change from the interest
rate  sensitivity analysis or the market value of portfolio equity for various
changes  in  interest rates calculated as of December 31, 1997.  The foregoing
disclosures  related  to  the  market  risk  of  the Company should be read in
conjunction  with  the  Company's  audited  consolidated financial statements,
related  notes and management's discussion and analysis of financial condition
and results of operations for the year ended December 31, 1997 included in the
Company's  1997  Annual  Report  on  Form  10K.


<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.

          At  the  Annual Meeting of Shareholders held April 15, 1998 pursuant
to  the  Notice  of  Annual  Meeting of Shareholders and Proxy Statement dated
March  12,  1998,  the  following  matters  were  voted  on:

          (1)    election  of  4  nominees  for directors to terms of 3 years:
1,235,203  shares  (99.9%  of  the  votes  cast) voted FOR the election of the
directors;  and
          (2)  the ratification of the appointment of KPMG Peat Marwick LLP as
independent  accountants  for  the  Company:    1,234,864 shares (99.9% of the
shares  represented  at  the  meeting)  voted FOR the ratification; 726 shares
AGAINST;  120  shares  ABSTAIN.

          No  other  matters were submitted to the shareholders for  a vote at
the  Annual  Meeting  or  at  any  other  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:  May  12,  1998         

/s/  J.  Randolph  Potter
-------------------------
J.  Randolph  Potter,  President
 and  Chief  Executive  Officer


Dated:  May  12,  1998                    

/s/  Blaise  B.  Bettendorf
---------------------------
Blaise  B.  Bettendorf,  Senior
Vice  President  and  Chief
Financial  Officer