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  September  30,  2000

                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  November  6, 2000, 3,422,331 shares of $1.00 par value common stock were
outstanding.

<PAGE>

<TABLE>
<CAPTION>

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


                                                    September 30,    December 31,
                                                        2000             1999
                                                   ---------------  --------------
<S>                                                <C>              <C>
ASSETS
Cash and due from banks                            $       10,275   $       3,952
Interest-bearing bank balances                              4,592           4,399
Federal funds sold                                         20,300           1,470
Investments available for sale                             30,414          26,466
Loans, net of unearned income and net of
 allowance for loan losses of $2,357 and $2,163           165,823         146,007
Premises and equipment, net                                 3,427           2,890
Accrued interest receivable                                 1,493           1,337
Other assets                                                5,194           4,708
                                                   ---------------  --------------
                                                   $      241,518   $     191,229
                                                   ===============  ==============
  LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits:
 Noninterest-bearing demand                        $       25,133   $      23,823
 Interest-bearing demand                                   12,421          14,073
 Savings and money market                                  71,607          50,845
 Time deposits, $100,000 and over                          40,912          28,459
 Other time deposits                                       52,221          40,796
                                                   ---------------  --------------
                                                          202,294         157,996
Federal funds purchased                                         -           4,000
Other short-term borrowings                                   500             500
FHLB advances                                              16,000           9,000
Accrued interest payable                                    1,367           1,132
Other liabilities                                             897           1,010
                                                   ---------------  --------------
                                                          221,058         173,638
                                                   ---------------  --------------
Shareholders' equity:
 Common stock, $1.00 par value; 20,000,000
  shares authorized; issued and
  outstanding 3,422,331 and 3,243,739 shares                3,422           3,244
 Additional paid-in capital                                15,213          14,730
 Retained earnings                                          2,487             483
 Accumulated other comprehensive loss, net of tax            (299)           (563)
 Nonvested resticted stock                                   (363)           (303)
                                                   ---------------  --------------
     Total shareholders' equity                            20,460          17,591
                                                   ---------------  --------------
                                                   $      241,518   $     191,229
                                                   ===============  ==============
<FN>

SEE  NOTES  TO  CONSOLIDATED  FINANCIAL  STATEMENTS
</TABLE>


<PAGE>

<TABLE>
<CAPTION>

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

                                          For the Three Months Ended    For the Nine Months Ended
                                                    September 30,               September 30,
                                               ------------------------  ------------------------
                                                  2000         1999         2000         1999
                                               -----------  -----------  -----------  -----------
<S>                                            <C>          <C>          <C>          <C>
Interest Income:
 Loans                                         $    4,339   $    3,531   $   12,186   $   10,014
 Taxable investment securities                        313          231          827          700
 Nontaxable investment securities                     121          124          391          370
 Federal funds sold                                   269           54          337           66
 Other                                                 98           51          178           96
                                               -----------  -----------  -----------  -----------
                                                    5,140        3,991       13,919       11,246
                                               -----------  -----------  -----------  -----------
Interest Expense:
 Deposits                                           2,366        1,607        5,906        4,432
 Other                                                268          130          664          409
                                               -----------  -----------  -----------  -----------
                                                    2,634        1,737        6,570        4,841
                                               -----------  -----------  -----------  -----------
     Net interest income                            2,506        2,254        7,349        6,405
Provision for loan losses                            (119)        (108)        (317)        (318)
                                               -----------  -----------  -----------  -----------
     Net interest income after
      provision for loan losses                     2,387        2,146        7,032        6,087
                                               -----------  -----------  -----------  -----------
Noninterest Income:
 Service charges and fees on deposit accounts          81           52          271          158
 Credit card service fees and income                   86           84          273          243
 Insurance commission fee income                       66           64          212          186
 Gain on sale of securities                             -            -           10           22
 Other income                                         197          169          499          544
                                               -----------  -----------  -----------  -----------
                                                      430          369        1,265        1,153
                                               -----------  -----------  -----------  -----------
Noninterest Expenses:
 Salaries, wages and benefits                       1,105          879        3,108        2,573
 Occupancy                                            157          150          451          437
 Furniture and equipment                              158          176          491          487
 Other expenses                                       404          456        1,329        1,277
                                               -----------  -----------  -----------  -----------
                                                    1,824        1,661        5,379        4,774
                                               -----------  -----------  -----------  -----------
Income before income taxes                            993          854        2,918        2,466
Income taxes                                         (309)        (237)        (914)        (700)
                                               -----------  -----------  -----------  -----------
Net income                                     $      684   $      617   $    2,004   $    1,766
                                               ===========  ===========  ===========  ===========

Net income per common share:
   Basic                                       $      .20   $      .19   $      .60   $      .56
   Diluted                                     $      .19   $      .17   $      .54   $      .47
Average common shares outstanding:
   Basic                                        3,375,000    3,171,000    3,349,000    3,167,000
   Diluted                                      3,672,000    3,722,000    3,682,000    3,741,000

<FN>

SEE  NOTES  TO  CONSOLIDATED  FINANCIAL  STATEMENTS
</TABLE>

<PAGE>

<TABLE>
<CAPTION>

                                   SUMMIT FINANCIAL CORPORATION AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY AND COMPREHENSIVE INCOME
                               FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2000 AND 1999
                                               (Dollars in Thousands)
                                                    (Unaudited)

                                                                                          Accumulated
                                                                                             other
                                                               Additional                comprehensive   Nonvested
                                                  Common        paid-in       Retained      (loss)      restricted
                                                  stock         capital       earnings    income, net      stock
                                               ------------  --------------  ----------  -------------  -----------
<S>                                            <C>           <C>             <C>         <C>            <C>
Balance at December 31, 1998                   $      3,039  $       12,726           -  $        313        ($404)
Net income for the nine months
 ended September 30, 1999                                 -               -       1,766             -            -
Other comprehensive income:
Unrealized gain on securities:
 Unrealized holding losses arising during
  the period, net of tax of ($441)                        -               -           -          (704)           -
 Less: reclassification adjustment for gains
  included in net income, net of tax of $6                -               -           -           (16)           -
                                                                                         -------------
 Other comprehensive loss                                 -               -           -          (720)           -
                                                                                         -------------
Comprehensive income                                      -               -           -             -            -

Employee stock options exercised                         17              53           -             -            -
Amortization of deferred
 compensation on restricted stock                         -               -           -             -           76
                                               ------------  --------------  ----------  -------------  -----------
Balance at September 30, 1999                  $      3,056  $       12,779  $    1,766         ($407)       ($328)
                                               ============  ==============  ==========  =============  ===========


Balance at December 31, 1999                   $      3,244  $       14,730  $      483         ($563)       ($303)
Net income for the nine months
 ended September 30, 2000                                 -               -       2,004             -            -
Other comprehensive income:
Unrealized gain on securities:
 Unrealized holding losses arising during
  the period, net of tax of $162                          -               -           -           270            -
 Less: reclassification adjustment for gains
  included in net income, net of tax of $4                -               -           -            (6)           -
                                                                                         -------------
 Other comprehensive income                               -               -           -           264            -
                                                                                         -------------
Comprehensive income                                      -               -           -             -            -

Employee stock options exercised                        164             342           -             -            -
Restricted stock issued                                  14             141           -             -         (155)
Amortization of deferred
 compensation on restricted stock                         -               -           -             -           95
                                               ------------  --------------  ----------  -------------  -----------
Balance at September 30, 2000                  $      3,422  $       15,213  $    2,487         ($299)       ($363)
                                               ============  ==============  ==========  =============  ===========




                                                    Total
                                                shareholders'
                                                   equity
                                               ---------------
<S>                                            <C>
Balance at December 31, 1998                   $       15,674
Net income for the nine months
 ended September 30, 1999                               1,766
Other comprehensive income:
Unrealized gain on securities:
 Unrealized holding losses arising during
  the period, net of tax of ($441)                          -
 Less: reclassification adjustment for gains
  included in net income, net of tax of $6                  -

 Other comprehensive loss                                (720)
                                               ---------------
Comprehensive income                                    1,046
                                               ---------------
Employee stock options exercised                           70
Amortization of deferred
 compensation on restricted stock                          76
                                               ---------------
Balance at September 30, 1999                  $       16,866
                                               ===============


Balance at December 31, 1999                   $       17,591
Net income for the nine months
 ended September 30, 2000                               2,004
Other comprehensive income:
Unrealized gain on securities:
 Unrealized holding losses arising during
  the period, net of tax of $162                            -
 Less: reclassification adjustment for gains
  included in net income, net of tax of $4                  -

 Other comprehensive income                               264
                                               ---------------
Comprehensive income                                    2,268
                                               ---------------
Employee stock options exercised                          506
Restricted stock issued                                     -
Amortization of deferred
 compensation on restricted stock                          95
                                               ---------------
Balance at September 30, 2000                  $       20,460
                                               ===============

<FN>

SEE  NOTES  TO  CONSOLIDATED  FINANCIAL  STATEMENTS
</TABLE>


<PAGE>

<TABLE>
<CAPTION>

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

                                                          For the Nine Months Ended
                                                                  September 30,
                                                               --------------------
                                                                 2000       1999
                                                               ---------  ---------
<S>                                                            <C>        <C>
Cash flows from operating activities:
 Net income                                                    $  2,004   $  1,766
Adjustments to reconcile net income to net cash
 provided by operating activities:
    Provision for loan losses                                       317        318
    Depreciation and amortization                                   365        387
    Gain on sale of equipment and vehicles                            -        (26)
    Gain on sale securities available for sale                      (10)       (22)
    Net amortization of net premium on investments                   22         62
    Amortization of deferred compensation on restricted stock        95         76
    Increase in other assets                                       (354)      (255)
    Increase in other liabilities                                   122        572
                                                               ---------  ---------
Net cash provided by operating activities                         2,561      2,878
                                                               ---------  ---------

Cash flows from investing activities:
  Purchases of securities available for sale                     (7,715)    (3,889)
  Proceeds from maturities of securities available for sale       1,269      3,808
  Proceeds from sales of securities available for sale            2,912      1,021
  Purchases of investments in FHLB and other stock                 (450)      (146)
  Purchases of company-owned life insurance                           -          -
  Net increase in loans                                         (20,133)   (13,662)
  Purchases of premises and equipment                              (902)      (294)
  Proceeds from sale of equipment and vehicles                        -         49
                                                               ---------  ---------
Net cash used in investing activities                           (25,019)   (13,113)
                                                               ---------  ---------

Cash flows from financing activities:
  Net increase in deposit accounts                               44,298     17,889
  Net decrease in federal funds purchased                        (4,000)    (3,566)
  Repayment of other short-term borrowings                            -       (320)
  Proceeds from FHLB advances                                    22,000     10,550
  Repayments of FHLB advances                                   (15,000)    (9,550)
  Proceeds from employee stock options exercised                    506         70
                                                               ---------  ---------
Net cash provided by financing activities                        47,804     15,073
                                                               ---------  ---------
Net increase in cash and cash equivalents                        25,346      4,838
Cash and cash equivalents, beginning of period                    9,821      6,400
                                                               ---------  ---------
Cash and cash equivalents, end of period                       $ 35,167   $ 11,238
                                                               =========  =========

SUPPLEMENTAL INFORMATION:
Cash paid during the period for interest                       $  6,335   $  4,938
Cash paid during the period for income taxes                   $  1,094   $    800
Change in fair market value of investment securities
 available for sale, net of income taxes                       $    264      ($720)

<FN>

SEE  NOTES  TO  CONSOLIDATED  FINANCIAL  STATEMENTS
</TABLE>

<PAGE>

                          SUMMIT FINANCIAL CORPORATION
     CONDENSED  NOTES  TO  CONSOLIDATED  FINANCIAL  STATEMENTS
                               SEPTEMBER 30, 2000

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  three  full  service branch locations in Greenville, South
Carolina  and a Loan Production Office in Spartanburg, South Carolina.  In 1997,
the  Bank  incorporated  Summit  Investment  Services,  Inc.  as  a wholly-owned
subsidiary  to offer nondeposit products and financial management services.  The
Finance  Company  commenced  operations  in November 1994 and makes and services
small  installment loans to individuals from its eleven offices throughout South
Carolina.

     The  accompanying consolidated financial statements include the accounts of
the  Company  and  its  subsidiaries.  All significant intercompany accounts and
transactions  have been eliminated in consolidation.  The unaudited consolidated
financial  statements  of  the  Company  at September 30, 2000 and for the three
month  and nine month periods ended September 30, 2000 and 1999 were prepared in
accordance  with  the instructions for Form 10-Q.  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 September 30,
2000,  and  the  results  of  operations  and  cash  flows for the periods ended
September 30, 2000 and 1999 have been included.  The results for the three month
or nine month periods ended September 30, 2000 are not necessarily indicative of
the  results that may be expected for the full year or any other interim period.

     The  consolidated  financial  statements  are  prepared  in conformity with
generally  accepted  accounting principles ("GAAP") which requires management to
make  estimates  and  assumptions.  These  estimates  and assumptions affect the
reported  amounts  of  assets  and  liabilities and the disclosure of contingent
assets  and  liabilities  at the date of the financial statements.  In addition,
the  estimates  affect  the  reported  income  and  expense during the reporting
period.  Actual  results  could  differ  from  these  estimates and assumptions.

     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, 1999 included in the Company's
1999  Annual  Report  on  Form  10-K.

NOTE  2  -  CASH  FLOW  INFORMATION:
          For  the  purposes of reporting cash flows, cash includes currency and
coin,  cash items in process of collection and due from banks.  Included in cash
and  cash  equivalents  are  federal  funds sold and overnight investments.  The
Company  considers  the  amounts included in the balance sheet line items, "Cash
and  due  from banks", "Interest-bearing bank balances" and "Federal funds sold"
to  be  cash  and  cash  equivalents.  These  accounts  totaled  $35,167,000 and
$11,238,000  at  September  30,  2000  and  1999,  respectively.


NOTE  3  -  PER  SHARE  INFORMATION:
     The  following  is  a  reconciliation  of the denominators of the basic and
diluted  per share computations for net income for the three and the nine months
ended  September  30, 2000 and 1999.  There is no required reconciliation of the
numerator from the net income reported on the accompanying statements of income.
All  average  share  and  per share data have been restated to reflect all stock
dividends  as  of the earliest period presented.  (All numbers, except per share
data,  in  thousands).

<TABLE>
<CAPTION>

                             For the Three Months Ended September 30,
                                     2000     2000     1999     1999
                                   --------  ------  --------  ------
                                     BASIC  DILUTED    BASIC  DILUTED
                                    ------ --------   ------ --------
<S>                                <C>       <C>     <C>       <C>
Net Income                         $    684  $  684  $    617  $  617
                                   --------  ------  --------  ------
Weighted average shares
 outstanding                          3,375   3,375     3,171   3,171
Effective of Dilutive Securities:
 Stock options                            -     250         -     518
 Unvested restricted stock                -      47         -      33
                                   --------  ------  --------  ------
                                      3,375   3,672     3,171   3,722
                                   --------  ------  --------  ------
Per-share amount                   $   0.20  $ 0.19  $   0.19  $ 0.17
                                   ========  ======  ========  ======
</TABLE>


<TABLE>
<CAPTION>

                              For the Nine Months Ended September 30,
                                     2000     2000     1999     1999
                                   --------  ------  --------  ------
                                     BASIC  DILUTED    BASIC  DILUTED
                                    ------ --------   ------ --------
<S>                                <C>       <C>     <C>       <C>
Net Income                         $  2,004  $2,004  $  1,766  $1,766
                                   --------  ------  --------  ------
Weighted average shares
 outstanding                          3,349   3,349     3,167   3,167
Effective of Dilutive Securities:
 Stock options                            -     286         -     541
 Unvested restricted stock                -      47         -      33
                                   --------  ------  --------  ------
                                      3,349   3,682     3,167   3,741
                                   --------  ------  --------  ------
Per-share amount                   $   0.60  $ 0.54  $   0.56  $ 0.47
                                   ========  ======  ========  ======
</TABLE>

<PAGE>

NOTE  4  -  SEGMENT  INFORMATION:
     The  Company reports information about its operating segments in accordance
with  SFAS  131,  "Disclosures  about  Segments  of  an  Enterprise  and Related
Information".  Summit  Financial  Corporation  is the parent holding company for
Summit National Bank ("Bank"), a nationally chartered bank, and Freedom Finance,
Inc.  ("Finance"),  a  consumer finance company.  The Company considers the Bank
and  the  Finance  Company  separate  business  segments.

     Financial performance for each segment is detailed in the following tables.
Included  in the "Corporate" column are amounts for general corporate activities
and  eliminations  of  intersegment  transactions.

<TABLE>
<CAPTION>

                                    For  the  quarter  ended               At and for the nine months ended
                                      September 30,  2000                       September 30, 2000
                           -------------------------------------------   -----------------------------------------
                             Bank      Finance    Corporate     Total      Bank     Finance    Corporate    Total
                           ---------  ---------  -----------  ---------  --------  ---------  -----------  --------
<S>                        <C>        <C>        <C>          <C>        <C>       <C>        <C>          <C>
Interest income            $  4,745   $    426         ($31)  $  5,140   $12,699   $  1,301         ($81)  $13,919
Interest expense             (2,624)       (90)          80     (2,634)   (6,543)      (249)         222    (6,570)
                           ---------  ---------  -----------  ---------  --------  ---------  -----------  --------
Net interest income           2,121        336           49      2,506     6,156      1,052          141     7,349
Provision for loan losses       (90)       (29)           -       (119)     (227)       (90)           -      (317)
Other income                    363         79          (12)       430     1,052        249          (36)    1,265
Other expenses               (1,448)      (374)          (2)    (1,824)   (4,230)    (1,141)          (8)   (5,379)
                           ---------  ---------  -----------  ---------  --------  ---------  -----------  --------
Income before taxes             946         12           35        993     2,751         70           97     2,918
Income taxes                   (291)        (5)         (13)      (309)     (849)       (27)         (38)     (914)
                           ---------  ---------  -----------  ---------  --------  ---------  -----------  --------
Net income                 $    655   $      7   $       22   $    684   $ 1,902   $     43   $       59   $ 2,004
                           =========  =========  ===========  =========  ========  =========  ===========  ========
Net loans                                                               $163,980   $  3,128      ($1,285)  $165,823
                                                                        =========  =========  ===========  ========
Total assets                                                            $238,988   $  3,846      ($1,316)  $241,518
                                                                        =========  =========  ===========  ========
</TABLE>


<TABLE>
<CAPTION>

                                    For  the  quarter  ended               At and for the nine months ended
                                      September 30,  1999                       September 30, 1999
                           -------------------------------------------   -----------------------------------------
                             Bank      Finance    Corporate     Total      Bank     Finance    Corporate    Total
                           ---------  ---------  -----------  ---------  --------  ---------  -----------  --------
<S>                        <C>        <C>        <C>          <C>        <C>       <C>        <C>          <C>
Interest income            $  3,598   $    420         ($27)  $  3,991   $10,047   $  1,271         ($72)  $11,246
Interest expense             (1,729)       (73)          65     (1,737)   (4,815)      (208)         182    (4,841)
                           ---------  ---------  -----------  ---------  --------  ---------  -----------  --------
Net interest income           1,869        347           38      2,254     5,232      1,063          110     6,405
Provision for loan losses       (60)       (48)           -       (108)     (200)      (118)           -      (318)
Other income                    296         85          (12)       369       938        251          (36)    1,153
Other expenses               (1,273)      (386)          (2)    (1,661)   (3,641)    (1,126)          (7)   (4,774)
                           ---------  ---------  -----------  ---------  --------  ---------  -----------  --------
Income before taxes             832         (2)          24        854     2,329         70           67     2,466
Income taxes                   (234)         7          (10)      (237)     (660)       (18)         (22)     (700)
                           ---------  ---------  -----------  ---------  --------  ---------  -----------  --------
Net income                 $    598   $      5   $       14   $    617   $ 1,669   $     52   $       45   $ 1,766
                           =========  =========  ===========  =========  ========  =========  ===========  ========
Net loans                                                               $140,710   $  2,761      ($1,284)  $142,187
                                                                        =========  =========  ===========  ========
Total assets                                                            $184,545   $  3,593      ($1,327)  $186,811
                                                                        =========  =========  ===========  ========
</TABLE>


                          SUMMIT FINANCIAL CORPORATION

                         PART  I.  FINANCIAL  INFORMATION

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


     The  following  discussion  and analysis should be read in conjunction with
the consolidated financial statements and related notes and with the statistical
information  and  financial  data appearing in this report as well as the Annual
Report  of Summit Financial Corporation (the "Company") on Form 10K for the year
ended  December  31,  1999.  Results  of operations for the three month and nine
month periods ended September 30, 2000 are not necessarily indicative of results
to  be  attained  for  any  other  period.

FORWARD-LOOKING  STATEMENTS
     This  report  may  contain certain "forward-looking statements", within the
meaning of  Section 27A of the Securities Exchange Act of l934, as amended, that
represent  the Company's expectations or beliefs concerning future events.  Such
forward-looking  statements  are  about  matters  that are inherently subject to
certain risks, uncertainties, and assumptions.  Factors that could influence the
matters  discussed  in  certain  forward-looking statements include the relative
levels of market interest rates, loan prepayments and deposit decline rates, the
timing  and  amount  of  revenues  that  may  be  recognized  by  the  Company,
continuation  of  current  revenue,  expense  and  charge-off  trends, legal and
regulatory  changes,  and general changes in the economy.  Should one or more of
these risks or uncertainties materialize, or should underlying assumptions prove
incorrect,  actual results may vary materially from those expected or projected.
These forward-looking statements speak only as of the date of the document.  The
Company assumes no obligation to update any forward-looking statements.  Because
of  the  risks and uncertainties inherent in forward-looking statements, readers
are  cautioned  not  to  place  undue  reliance  on  them.

OVERVIEW
     Summit  Financial  Corporation  (the  "Company") is a financial institution
holding company headquartered in Greenville, South Carolina.  The Company offers
a  broad range of financial services through its wholly-owned subsidiary, Summit
National  Bank  (the  "Bank,"  or "Summit").  The Bank is a nationally chartered
commercial  bank  which  operates  principally in the Upstate of South Carolina.
The  Bank  received its charter and commenced operations in July 1990.  In 1997,
the  Bank  incorporated  Summit  Investment  Services,  Inc.  as  a wholly-owned
subsidiary  to  provide  a  wider  range  of  investment  products and financial
planning  services.  The  Bank  currently  has  four  full  service  offices  in
Greenville  and  Spartanburg,  South  Carolina.  Summit provides a full range of
banking services to individuals and businesses, including the taking of time and
demand deposits, making loans, and offering nondeposit investment services.  The
Bank emphasizes close personal contact with its customers and strives to provide
a consistently high level of service to both individual and corporate customers.

     Freedom  Finance,  Inc.  (the  "Finance  Company"  or  "Freedom,")  is  a
wholly-owned subsidiary of the Company  which is operating as a consumer finance
company  headquartered  in  Greenville,  South  Carolina.  The  Finance  Company
primarily  makes  and  services  installment  loans  to  individuals  with  loan
principal  amounts  generally  not  exceeding $2,000 and with maturities ranging
from  three  to  eighteen  months.  Freedom  operates eleven branches throughout
South  Carolina.

     During  the  quarter  ended  September  30,  2000, the Company's net income
totaled  $684,000  or $.19 per diluted share.  This is compared to net income of
$617,000  or  $.17 per diluted share for the same quarterly period of 1999 or an
increase  of  11%.  For  the first nine months of 2000, the Company reported net
income of $2,004,000 or $0.54 per diluted share, an improvement of approximately
$239,000  or  13%  from  the  net  income  for  the first nine months of 1999 of
$1,766,000  or  $0.47  per  diluted  share.

BALANCE  SHEET  ACTIVITY
     Total  assets  increased  $50.3  million or 26.3% from December 31, 1999 to
September  30,  2000.  Deposits  increased  approximately $44.3 million or 28.0%
during the period.  A majority of the increase in deposits was in jumbo (greater
than  $100,000) certificates of deposit which accounted for $12.5 million of the
increase  and  money  market  deposits  which accounted for $20.8 million of the
increase  .  The  increase in deposits funded gross loan growth of $20.0 million
(13.5%).  The  balance  is reflected in the increase of $18.8 million in federal
funds  sold  and  the  $3.9  million  increase  in  investment  securities.

ALLOWANCE  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 probable losses inherent 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;  estimated  collateral  values;  general  economic
conditions;  and  management's assessment of inherent losses based upon internal
credit  grading of the loans and periodic reviews and assessments of credit risk
associated  with  particular  loans.

     At  September 30, 2000, the consolidated allowance for loan losses was $2.4
million  or  1.40%  of  total loans net of unearned income.  This compares to an
allowance  of  $2.1  million  or  1.43% of total loans net of unearned income at
September  30,  1999.  For  the  quarter  ended  September 30, 2000, the Company
reported consolidated net charge-offs of $41,000 or 0.10% of average loans on an
annualized  basis.  This  is compared to consolidated net charge-offs of $93,000
or  0.26% (annualized) of average loans for the comparable quarter of 1999.  For
the  nine  months  ended September 30, 2000, net charge-offs totaled $124,000 or
0.11% of average loans on an annualized basis.  This is compared to consolidated
net  charge-offs of $80,000 or 0.08% (annualized) of average loans for the prior
year.

     There were no loans on nonaccrual status at September 30, 1999 and loans on
nonaccrual  at  September  30,  2000  totaled  $388,000 or 0.23% of total loans.
Loans  past  due 90 days and greater totaled $136,000 or 0.08% of gross loans at
September  30,  2000 and $266,000 or 0.18% of gross loans at September 30, 1999.
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 September
30,  2000  represents  management's  estimate of probable losses inherent in the
loan  portfolio  at  that  date.



<PAGE>
EARNINGS  REVIEW  FOR  THE  QUARTER  ENDED  SEPTEMBER  30,  2000  AND  1999

GENERAL
     The  Company  reported  consolidated  net  income  for  the  quarter  ended
September  30,  2000  of  $684,000,  compared  to net income of $617,000 for the
quarter  ended September 30, 1999, or an improvement of approximately $67,000 or
10.8%.  The  increase  in consolidated earnings for the 2000 period is primarily
attributable  to  the  $252,000  or 11.2% increase in the Company's net interest
income.  The  higher net interest income is directly related to the higher level
of average earning assets which increased 20.8% in 2000 as compared to the prior
year,  offset  by  the  lower  net interest margin for the third quarter of 2000
which  decreased  42 basis points from the prior year.  Also contributing to the
higher  net  income in the 16.5% increase in noninterest income, offset somewhat
by  the  9.8%  increase  in  noninterest  expense  during  the  same  period.

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 quarter ended September
30, 2000, the Company recorded consolidated net interest income of $2.5 million,
an  11.2%  increase from the net interest income of $2.3 million for the quarter
ended  September  30,  1999.  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  20.8% and 20.3% respectively, offset by the 42 basis point
increase  in  the  net  interest  margin  for  the  Company.

     For  the  quarter  ended  September  30,  2000  and  1999,  the  Company's
consolidated  net  interest  margin  was 4.81% and 5.23%, 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 significant increase in the cost of funds in 2000
resulting  from  the  increasing interest rate environment in the latter half of
1999 and into 2000 and the certificate of deposit promotion rates offered in the
third quarter of 2000.  During this period, the average rate on assets increased
60  basis  points  related  to the prime rate increases during the period.  This
increase  was  more  than  offset by the 122 basis point increase in the average
cost  of  liabilities.

INTEREST  INCOME
     For  the  quarter  ended  September  30, 2000, the Company's earning assets
averaged  $212.3  million  and  had an average yield of 9.75%.  This compares to
average earning assets of $175.8 million for the third quarter of 1999, yielding
approximately  9.15%.  Thus,  the  20.8%  increase  in volume of average earning
assets, combined with the 60 basis point increase in average yield, accounts for
the  $1.1  million (28.8%) increase in interest income between the third quarter
of  1999  and  2000.

     Consolidated  loans  comprised  approximately  76% of the Company's average
earning  assets  for  the  third  quarter  of 2000 compared to 81% for the third
quarter of 1999.  The majority of the Company's loans are tied to the prime rate
(approximately 64% of the Bank's portfolio is at floating rates at September 30,
2000),  which averaged 9.50% and 8.10% for the quarters ended September 30, 2000
and  1999,  respectively.  During  the third quarter of 2000, consolidated loans
averaged  $161.7  million,  yielding  an  average  of 10.68%, compared to $142.6
million,  yielding  an  average  of 9.82% for the third quarter of 1999.  The 85
basis  point  increase in the average yield on loans is primarily related to the
higher  prime  lending rate.  The higher level of average loans (which increased
13.4%),  combined  with  the  increase  in  average rate, resulted in the higher
consolidated  interest  income  on  loans  of  $808,000  or  22.9%.

     Investment  securities  averaged  $28.6 million or 13.5% of average earning
assets  and  yielded  6.89%  (tax  equivalent basis) during the third quarter of
2000,  compared  to  average  securities  of  $25.8  million yielding 6.44% (tax
equivalent basis) for the quarter ended September 30, 1999.  The increase in the
average  yield  of  the investment portfolio is related to the portfolio mix and
the  timing  of  security  maturities  and sales which were reinvested in higher
market rate instruments.  This increase in average rate, combined with the 10.8%
increase  in  average securities, resulted in the increase of interest income on
securities  of  $79,000.

INTEREST  EXPENSE
     The Company's interest expense for the quarter ended September 30, 2000 was
$2.6 million.  The increase of 51.6% from the comparable quarter in 1999 of $1.7
million was directly related to the 122 basis point increase in the average rate
on  liabilities,  combined  with the 20.3% increase in volume.  Interest-bearing
liabilities  averaged  $179.5  million  for  the  third  quarter of 2000 with an
average rate of 5.84%.  This is compared to average interest-bearing liabilities
of  $149.2 million with an average rate of 4.62% for the quarter ended September
30,  1999.  The  increase  in average rate on liabilities is directly related to
the  increasing  interest  rate  environment  and  the  resulting higher cost of
deposits.

PROVISION  FOR  LOAN  LOSSES
     The allowance for loan losses is established through charges in the form of
a provision for loan losses.  Loan losses and recoveries are charged or credited
directly  to the allowance.  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 adequate allowance.  The level of this allowance
is  dependent  upon  growth in the loan portfolios; the total amount of past due
loans;  nonperforming loans; and known loan deteriorations and/or concentrations
of  credit.  Other  factors  affecting  the  allowance  are  trends in portfolio
volume,  maturity  and  composition;  collateral  values;  and  general economic
conditions.  Finally,  management's  assessment  of  probable  losses based upon
internal  credit  grading  of  the loans and periodic reviews and assessments of
credit  risk  associated with particular loans is considered in establishing the
allowance  amount.

     Management  maintains  an  allowance  for  loan losses which it believes is
adequate  to cover inherent losses in the loan portfolio.  However, management's
judgment  is  based  upon  a  number  of  assumptions  which  are believed to be
reasonable,  but  which  may  or may not prove valid.  There are 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 September 30, 2000 is a
provision  for  loan  losses of $119,000 compared to a provision of $108,000 for
the  third  quarter  of 1999.  The difference in the provision is related to the
timing  and  amount  of  net  loan originations for the third quarter of 2000 as
compared  to  1999  and the amount of net charge-offs in the comparable quarter.

NONINTEREST  INCOME  AND  EXPENSES
     Noninterest  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  $430,000  for  the quarter ended
September  30,  2000  compared  to $369,000 for the third quarter of 1999, or an
increase  of  16.5%.  Increases  in service charges on customer accounts and NSF
fees  and higher commission on nondeposit product sales are primarily related to
the  higher  level  of  activity  and  transactions of the Bank generating other
income  in  the  normal  course  of  business.

     For  the  quarter  ended September 30, 2000, noninterest expenses were $1.8
million  which  is  an increase of 9.8% over the amount incurred for the quarter
ended September 30, 1999 of $1.7 million.  The most significant item included in
other  expenses  is  salaries, wages and benefits which amounted to $1.1 million
for the quarter ended September 30, 2000 as compared to $879,000 for the quarter
ended  September 30, 1999.  The increase of $226,000 or 25.7% is a result of (1)
normal  annual  raises,  (2)  replacement  of  staff  due  to turnover at higher
salaries,  (3) higher incentive bonus accruals related to new bonus plans put in
place  in  2000, and (4) the staff added at the Spartanburg branch office during
the  third  quarter  of  2000  totaling three management-level and 6 staff-level
employees.

     Occupancy  expenses  increased 4.7% related to expenses associated with the
startup  of  the Spartanburg branch.  Furniture, fixtures, and equipment ("FFE")
expenses  decreased  10.2%  between  the  third quarter of 2000 and 1999 related
primarily  to  decreases  in  depreciation  on  fully  depreciated  assets.

     Included  in  the  line  item  "other  operating expenses", which decreased
$52,000  or  11.4%  from  the  comparable  period  of  1999, are charges for OCC
assessments; property and bond insurance; ATM switch fees; credit card expenses;
professional services; education and seminars; advertising and public relations;
and  other  branch  and  customer  related  expenses.  The decrease is primarily
related  to  lower legal fees for loan collections and bankruptcies in the third
quarter  of  2000  as  compared  to  the  prior year.  Advertising and marketing
expenses  were  also  less  in  2000  given the timing and amount of advertising
campaigns  between  the  two  periods.

INCOME  TAXES
     For  the quarter ended September 30, 2000, the Company reported $309,000 in
income  tax  expense,  or  an  effective tax rate of 31.1%.  This is compared to
income  tax  expense  of  $237,000  for the same period of the prior year, or an
effective  tax  rate  of 27.8%.  The increase in the effective rate is primarily
related  to  the  full  utilization of state net operating loss carryforwards in
early  2000  and  adjustments  to  the  TEFRA  interest disallowance on tax-free
municipal  investments.


RESULTS  OF  OPERATIONS - COMPARISON OF THE NINE MONTHS ENDED SEPTEMBER 30, 2000
AND  1999

GENERAL
     The  Company  reported  consolidated  net  income for the nine months ended
September  30,  2000 of $2,004,000, compared to net income of $1,766,000 for the
nine  months  ended  September  30,  1999,  or  an  improvement of approximately
$238,000 or 13.5%.  The increase in consolidated earnings for the 2000 period is
primarily  attributable  to  the $944,000 or 14.7% increase in the Company's net
interest  income  related  to  the  higher  level  of  earning assets in 2000 as
compared  to  the  prior  year and the general rising interest rate environment.
Partially  offsetting the increase in net interest income and noninterest income
is  the  increase  in  noninterest  expenses  of  approximately  12.7%.

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  nine  months  ended
September  30,  2000,  the  Company recorded consolidated net interest income of
$7.3  million, a 14.7% increase from the net interest income of $6.4 million for
the  nine  months  ended  September  30,  1999.  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  15.9%  and  15.4%
respectively,  offset slightly by the 8 basis point decrease in the net interest
margin  of  the  Company  for  the  two  comparable  periods.

     For  the  nine  months  ended  September  30,  2000 and 1999, the Company's
consolidated  net  interest  margin  was 5.21% and 5.29%, 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 cost of funds resulting from the
general  rising  interest rate environment and promotions offers on certificates
of  deposit  in  the  third  quarter  of  2000.

INTEREST  INCOME
     For  the nine months ended September 30, 2000, the Company's earning assets
averaged  $193.4  million  and  had an average yield of 9.75%.  This compares to
average  earning  assets  of  $166.8  million for the first nine months of 1999,
yielding  approximately  9.17%.  Thus,  the  15.9% increase in volume of average
earning  assets,  combined  with  the  58 basis point increase in average yield,
accounts  for  the $2.7 million (23.8%) increase in interest income between 1999
and  2000.

     Consolidated  loans  averaged  approximately  80%  of the Company's average
earning  assets for the first nine months of 2000 compared to 82% for 1999.  The
majority of the Company's loans are tied to the prime rate (approximately 64% of
the Bank's portfolio is at floating rates at September 30, 2000), which averaged
9.31%  and  7.87%  for  the  nine  months  ended  September  30,  2000 and 1999,
respectively.  During the first nine months of 2000, consolidated loans averaged
$155.1  million,  yielding  an  average  of  10.50%, compared to $136.9 million,
yielding  an  average  of 9.78% for the first nine months of 1999.  The 72 basis
point  increase in the average yield on loans is primarily related to the higher
prime  lending rate in 2000.  The higher level of average loans (which increased
13.2%),  combined  with the increase in average rate, resulted in an increase in
consolidated  interest  income  on  loans  of  $2.2  million  or  21.7%.

     Investment  securities  averaged  $27.8 million or 14.4% of average earning
assets  and yielded 6.82% (tax equivalent basis) during the first nine months of
2000,  compared  to  average  securities  of  $26.0  million yielding 6.48% (tax
equivalent basis) for the nine months ended September 30, 1999.  The increase in
the  average  yield  of the investment portfolio is related to the portfolio mix
and  the timing of security maturities and sales which were reinvested in higher
market rate instruments.  The 6.9% increase in average volume, combined with the
34  basis  point  increase  in  yield  on  investment securities resulted in the
increase  in  interest  income  on  securities  of  $148,000.

INTEREST  EXPENSE
     The Company's interest expense for the nine months ended September 30, 2000
was $6.6 million.  The increase of 35.7% from the comparable nine months in 1999
of  $4.8  million  was  directly  related to the 15.4% increase in the volume of
average  interest-bearing liabilities, combined with the 81 basis point increase
in  the  average  rate  on  liabilities.  Interest-bearing  liabilities averaged
$161.6  million for the first nine months of 2000 with an average rate of 5.43%.
This  is compared to average interest-bearing liabilities of $140.0 million with
an  average  rate  of  4.62%  for the nine months ended September 30, 1999.  The
increase  in  the  average  rate  on  liabilities is the result of maturities of
certificates of deposit renewed at higher current market rates as the prime rate
increased in the latter half of 1999 and through 2000, combined with promotional
rates  offered  on  CDs  during  the  third  quarter  of  2000.



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 probable losses inherent in the loan portfolio. Included
in  the  net  income for the nine months ended September 30, 2000 is a provision
for  loan  losses  of $317,000 compared to a provision of $318,000 for the first
nine  months  of  1999.

NONINTEREST  INCOME  AND  EXPENSES
     Noninterest  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 $1.3 million for the nine months ended
September  30,  2000 compared to $1.2 million for the first nine months of 1999,
or  an  increase of 9.7%.  The increases was primarily related to higher service
charges,  credit  card/merchant  fees,  and insurance commissions related to the
higher level of activity and transactions of the Bank generating other income in
the  normal  course  of  business.  These  increases  were  somewhat  offset  by
reductions  in  gains  on  sales  of investment securities and company vehicles.

     For  the  nine  months ended September 30, 2000, total noninterest expenses
were $5.4 million which is an increase of 12.7% over the amount incurred for the
nine months ended September 30, 1999 of $4.8 million.  The most significant item
included  in  other  expenses  is salaries, wages and benefits which amounted to
$3.1  million  for  the nine months ended September 30, 2000 as compared to $2.6
million  for the nine months ended September 30, 1999.  The increase of $535,000
or  20.8%  is a result of (1) normal annual raises, (2) replacement of staff due
to  turnover  at higher salaries, (3) higher incentive bonus accruals related to
new bonus plans put in place in 2000, and (4) the staff added at the Spartanburg
branch  office  during  the  second  and  third  quarters of 2000 totaling three
management-level  and  6  staff-level  employees.

     Occupancy and furniture, fixtures, and equipment ("FFE") expenses increased
slightly  (3.2%  and 1%, respectively) between the first nine months of 2000 and
1999  related  primarily  to  the  expenses  associated with the loan production
office  which  commenced  operations in April 2000, offset by lower depreciation
expense  for  fully  depreciated  assets  in  2000.

     Included  in  the  line  item  "other  operating expenses", which increased
$52,000  or  4.1%  from  the  comparable  period  of  1999,  are charges for OCC
assessments; property and bond insurance; ATM switch fees; credit card expenses;
professional services; education and seminars; advertising and public relations;
and  other  branch  and  customer  related  expenses.


INCOME  TAXES
     For the nine months ended September 30, 2000, the Company reported $914,000
in  income  tax expense, or an effective tax rate of 31.3%.  This is compared to
income  tax  expense  of  $700,000  for the same period of the prior year, or an
effective  tax  rate  of  28.4%. The increase in the effective rate is primarily
related  to  the  full  utilization of state net operating loss carryforwards in
early  2000  and  adjustments  to  the  TEFRA  interest disallowance on tax-free
municipal  investments.


LIQUIDITY
     Liquidity  management  involves  meeting  the cash flow requirements of the
Company  both at the holding company level as well as the subsidiary level.  The
Company's  bank subsidiary 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 short-term borrowings, 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.  These primary liquidity sources accounted for
14%  and  12%  of  average assets for the nine month periods ended September 30,
2000  and  1999,  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 advances
from  the  Federal Home Loan Bank, purchasing federal funds from other financial
institutions,  lines  of credit through the Federal Reserve Bank, and increasing
deposits  by  raising  rates  paid.  At  September  30,  2000,  the  Company had
approximately  $35  million in available credit under its FHLB and correspondent
bank  borrowing  facilities.

     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
approximately  $2.8  million  in  available liquidity remaining from its initial
public  offering  and  the retention of earnings.  Approximately $1.8 million of
this  liquidity was advanced to the Finance Company to fund its operations as of
September  30,  2000.  In  addition,  Summit  Financial has an available line of
credit  totaling $2.5 million with an unaffiliated financial institution, all of
which  was available at September 30, 2000.  Additional sources of liquidity for
Summit  Financial  include unsecured borrowings from individuals, and management
fees  and  debt  service  which  are  paid  by  its  subsidiaries.

     Liquidity  needs  of  Freedom  Finance,  primarily  for the funding of loan
originations,  acquisitions,  and  operating  expenses,  have  been  met 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
     Total  shareholders' equity at September 30, 2000 was $20.5 million or 8.5%
of  total  assets.  This is compared to $17.6 million or 9.2% of total assets at
December  31,  1999.  The  $2.9  million  increase in total shareholders' equity
resulted principally from the retention of earnings and stock issued pursuant to
the  Company's  incentive  stock  option  plan.

     Book  value  per  share at September 30, 2000 and 1999 was $5.98 and $5.26,
respectively.  Tangible  book value per share at September 30, 2000 and 1999 was
$5.87  and  $5.09,  respectively.  Tangible book value was below book value as a
result  of  the purchase premiums associated with branch acquisitions of Freedom
Finance  which  were  accounted  for  as  purchases.

     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.  In  the  normal  course  of  business,  during  July  2000,  the Company
purchased  land  and  entered into an agreement with an architect and contractor
related  to  the  construction  of  a bank branch facility in Spartanburg, South
Carolina.  The  Company  believes that its current available capital is adequate
to  fund  this  facility.  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.

     The  Company  and  the  Bank  are  required to maintain minimum amounts and
ratios  of total risk-based capital, Tier 1 capital, and Tier 1 leverage capital
as  set  forth in the table following.  Management believes, as of September 30,
2000,  that  the  Company and the Bank meet all capital adequacy requirements to
which  they  are  subject.  At  September  30,  2000  and  1999,  the  Bank  was
categorized  as  "well  capitalized"  under  the regulatory framework for prompt
corrective  action.  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 September 30, 2000 and 1999 as well
as  the  minimum  calculated  amounts  for  each  regulatory  defined  category.

<TABLE>
<CAPTION>

                              RISK-BASED CAPITAL CALCULATION

                                                                       TO BE CATEGORIZED
                                                          FOR CAPITAL          "WELL-
                                           ACTUAL       ADEQUACY PURPOSES   CAPITALIZED"
                                       ---------------  ---------------  ----------------
                                        AMOUNT   RATIO   AMOUNT   RATIO   AMOUNT   RATIO
                                        -------  ------  -------  ------  -------  ------
<S>                                     <C>      <C>     <C>      <C>     <C>      <C>
AS OF SEPTEMBER 30, 2000
THE COMPANY
Total capital to risk-weighted assets   $23,043  12.52%  $14,722   8.00%        N.A.
Tier 1 capital to risk-weighted assets  $20,743  11.27%  $ 7,361   4.00%        N.A.
Tier 1 capital to average assets        $20,743  10.16%  $ 8,165   4.00%        N.A.

THE BANK
Total capital to risk-weighted assets   $20,042  11.05%  $14,509   8.00%  $18,137  10.00%
Tier 1 capital to risk-weighted assets  $17,896   9.87%  $ 7,255   4.00%  $10,882   6.00%
Tier 1 capital to average assets        $17,896   8.88%  $ 8,064   4.00%  $10,080   5.00%

AS OF SEPTEMBER 30, 1999
THE COMPANY
Total capital to risk-weighted assets   $18,996  12.30%  $12,359   8.00%        N.A.
Tier 1 capital to risk-weighted assets  $17,065  11.05%  $ 6,180   4.00%        N.A.
Tier 1 capital to average assets        $17,065   9.64%  $ 7,082   4.00%        N.A.

THE BANK
Total capital to risk-weighted assets   $17,191  11.30%  $12,166   8.00%  $15,207  10.00%
Tier 1 capital to risk-weighted assets  $15,372  10.11%  $ 6,083   4.00%  $ 9,124   6.00%
Tier 1 capital to average assets        $15,372   8.79%  $ 6,992   4.00%  $ 8,740   5.00%

</TABLE>



ACCOUNTING,  REPORTING  AND  REGULATORY  MATTERS
     In September 1999, the Financial Accounting Standards Board ("FASB") issued
Statement  of  Financial  Accounting  Standards  ("SFAS")  133,  "Accounting for
Derivative  Instruments  and Hedging Activities."  SFAS 133 changes the previous
accounting definition of a derivative and discusses the appropriateness of hedge
accounting  for  various  forms of hedging activities.  Under this standard, all
derivatives  are  measured  at  fair  value  and  recognized in the statement of
financial  position as assets or liabilities.  This standard, as amended by SFAS
137,  is  effective  for  all  fiscal quarters of years beginning after June 15,
2000,  with earlier adoption permitted.  SFAS 133 is further amended by SFAS 138
to  address  a  limited  number  of  issues causing implementation difficulties.
Management  does not expect that this standard will have a significant effect on
the  Company.


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.

     The  yield  on  a  majority  of  the  Company's  earning  assets  adjusts
simultaneously  with  changes in the general level of interest rates.  Given the
Company's  asset-sensitive  balance  sheet  position, assets reprice faster than
liabilities,  which generally results in increases in net interest income during
periods  of  rising  interest  rates, as experienced from mid-1999 through 2000.
This  may  cause  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.  The  opposite  effect  (that  is,  a decrease in net interest
income)  is  generally  realized in a declining 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.

INTEREST  RATE  SENSITIVITY
     Achieving  consistent  growth  in net interest income, which is affected by
fluctuations  in  interest  rates,  is  the  primary  goal  of  the  Company's
asset/liability  function.  The  Company  attempts  to  control  the  mix  and
maturities  of  assets  and liabilities to maintain a reasonable balance between
exposure  to  interest  rate fluctuations and earnings and to achieve consistent
growth in net interest income, while maintaining adequate liquidity and capital.
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  Company's  asset/liability  mix is
sufficiently  balanced  so  that  the  effect of interest rates moving in either
direction  is  not  expected  to  be  significant  over  time.

     The  Company's  Asset/Liability Committee ("ALCO") uses a simulation model,
among other techniques, to assist in achieving consistent growth in net interest
income  while managing interest rate risk.  The model takes into account, over a
12 month period or longer if necessary, interest rate changes as well as changes
in  the  mix  and  volume  of  assets  and liabilities.  The model simulates the
Company's  balance  sheet  and  income  statement  under  several different rate
scenarios  and  rate  shocks.  The  model's  inputs  (such as interest rates and
levels  of  loans  and deposits) are updated as necessary throughout the year in
order  to  maintain  a current forecast as assumptions change.  According to the
model,  the  Company  is  presently  positioned so that net interest income will
increase  slightly  if  interest  rates  rise in the near term and will decrease
slightly  if  interest  rates  decline  in  the  near  term.

     The Company also uses interest rate sensitivity gap analysis to monitor the
relationship  between  the maturity and repricing of its interest-earning assets
and  interest-bearing  liabilities.  Interest rate sensitivity gap is defined as
the  difference  between  the  amount  of  interest-earning  assets  maturing or
repricing  within  a  specific  time  period  and the amount of interest-bearing
liabilities  maturing  or  repricing  within  the  same time period.  The static
interest  sensitivity  gap  position,  while  not a complete measure of interest
sensitivity, is also reviewed periodically to provide insights related to static
repricing  structure  of  assets  and  liabilities.  At September 30, 2000, on a
cumulative  basis  through  12  months,  rate-sensitive  liabilities  exceed
rate-sensitive  assets,  resulting  in  a  12  month  period liability-sensitive
position  of  $5.4  million.  When  the  effective  change ratio (the historical
relative  movement  of  each  asset's and liability's rates in relation to a 100
basis  point  change in the prime rate) is applied to the interest gap position,
the  Company  is  actually in an asset-sensitive position over a 12 month period
and the entire repricing lives of the assets and liabilities.  This is primarily
due  to  the  fact  that  over  60% of the loan portfolio moves immediately on a
one-to-one  ratio with a change in the prime rate, while the deposit accounts do
not  increase  or  decrease  as  much  relative  to  a  prime  rate  movement.

     The  Company's  asset-sensitive  position  means that assets reprice faster
than  the  liabilities, which generally results in increases in the net interest
income  during periods of rising rates and decreases in net interest income when
market  rates  decline.  The Company's net interest margin decreased between the
first  nine  months of 1999 and 2000 primarily as a result of the higher cost of
liabilities  given  the  general  rise  in  interest  rates  during  the period.


       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  it  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  Bank's  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  which  is charged with the
responsibility  to maintain the level of sensitivity of the Bank's net portfolio
value  within  Board  approved  limits.  Interest rate risk exposure is measured
using  interest  rate sensitivity analysis 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 - 300 basis points increase or decrease in the market
interest rates.  The 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 September 30, 2000, 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, 1999.  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, 1999 included in the
Company's  1999  Annual  Report  on  Form  10-K.




<PAGE>
                          SUMMIT FINANCIAL CORPORATION

                           PART  II.  OTHER  INFORMATION



Item  1.     Legal  Proceedings.

The  Corporation  and  its  subsidiaries  from  time  to time may be 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:  November  8,  2000

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


Dated:  November  8,  2000

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