FORM  10-Q

                   SECURITIES  AND  EXCHANGE  COMMISSION
                          Washington,  D.C.  20549

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

             For  The  Quarterly  Period  Ended  June  30,  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  July  30,  2000,  3,422,331  shares of $1.00 par value common stock were
outstanding.


<TABLE>
<CAPTION>

                  SUMMIT FINANCIAL CORPORATION AND SUBSIDIARIES
                           CONSOLIDATED BALANCE SHEETS
                  (Dollars in Thousands, Except Per Share Data)
                                   (Unaudited)


                                                    June 30,    December 31,
                                                      2000          1999
                                                   ----------  --------------
<S>                                                <C>         <C>
ASSETS
Cash and due from banks . . . . . . . . . . . . .  $   7,081   $       3,952
Interest-bearing bank balances. . . . . . . . . .      8,272           4,399
Federal funds sold. . . . . . . . . . . . . . . .      3,280           1,470
Investments available for sale. . . . . . . . . .     26,693          26,466
Loans, net of unearned income and net of
 allowance for loan losses of $2,279 and $2,163 .    155,413         146,007
Premises and equipment, net . . . . . . . . . . .      2,786           2,890
Accrued interest receivable . . . . . . . . . . .      1,470           1,337
Other assets. . . . . . . . . . . . . . . . . . .      5,183           4,708
                                                   ----------  --------------
                                                   $ 210,178   $     191,229
                                                   ==========  ==============
  LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits:
 Noninterest-bearing demand . . . . . . . . . . .  $  21,767   $      23,823
 Interest-bearing demand. . . . . . . . . . . . .     11,431          14,073
 Savings and money market . . . . . . . . . . . .     57,303          50,845
 Time deposits, $100,000 and over . . . . . . . .     33,324          28,459
 Other time deposits. . . . . . . . . . . . . . .     44,159          40,796
                                                   ----------  --------------
                                                     167,984         157,996
Federal funds purchased . . . . . . . . . . . . .          -           4,000
Other short-term borrowings . . . . . . . . . . .        500             500
FHLB advances . . . . . . . . . . . . . . . . . .     20,000           9,000
Accrued interest payable. . . . . . . . . . . . .      1,304           1,132
Other liabilities . . . . . . . . . . . . . . . .        943           1,010
                                                   ----------  --------------
                                                     190,731         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. . . . . . . . . . . . . . . .      1,803             483
 Accumulated other comprehensive loss, net of tax       (596)           (563)
 Nonvested resticted stock. . . . . . . . . . . .       (395)           (303)
                                                   ----------  --------------
     Total shareholders' equity . . . . . . . . .     19,447          17,591
                                                   ----------  --------------
                                                   $ 210,178   $     191,229
                                                   ==========  ==============
<FN>

SEE  NOTES  TO  CONSOLIDATED  FINANCIAL  STATEMENTS
</TABLE>

<TABLE>
<CAPTION>

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

                                                 For the Quarters Ended
                                                       June 30,
                                                  2000         1999
                                               -----------  -----------
<S>                                            <C>          <C>
Interest Income:
 Loans. . . . . . . . . . . . . . . . . . . .  $    4,020   $    3,301
 Taxable investment securities. . . . . . . .         264          232
 Nontaxable investment securities . . . . . .         135          124
 Federal funds sold . . . . . . . . . . . . .          35           10
 Other. . . . . . . . . . . . . . . . . . . .          44           23
                                               -----------  -----------
                                                    4,498        3,690
                                               -----------  -----------
Interest Expense:
 Deposits . . . . . . . . . . . . . . . . . .       1,832        1,430
 Other. . . . . . . . . . . . . . . . . . . .         227          154
                                               -----------  -----------
                                                    2,059        1,584
                                               -----------  -----------
     Net interest income. . . . . . . . . . .       2,439        2,106
Provision for loan losses . . . . . . . . . .        (105)        (129)
                                               -----------  -----------
     Net interest income after
      provision for loan losses . . . . . . .       2,334        1,977
                                               -----------  -----------
Noninterest income:
 Service charges and fees on deposit accounts          95           58
 Credit card service fees and income. . . . .          98           82
 Insurance commission fee income. . . . . . .          70           62
 Gain on sale of securities . . . . . . . . .          10            -
 Other income . . . . . . . . . . . . . . . .         160          188
                                               -----------  -----------
                                                      433          390
                                               -----------  -----------
Noninterest expenses:
 Salaries, wages and benefits . . . . . . . .       1,030          852
 Occupancy. . . . . . . . . . . . . . . . . .         151          142
 Furniture, fixtures and equipment. . . . . .         166          157
 Other expenses . . . . . . . . . . . . . . .         454          399
                                               -----------  -----------
                                                    1,801        1,550
                                               -----------  -----------
Income before income taxes. . . . . . . . . .         966          817
Provision for income taxes. . . . . . . . . .        (297)        (235)
                                               -----------  -----------
Net income. . . . . . . . . . . . . . . . . .  $      669   $      582
                                               ===========  ===========

Net income per share:
   Basic. . . . . . . . . . . . . . . . . . .  $      .20   $      .18
   Diluted. . . . . . . . . . . . . . . . . .  $      .18   $      .15
Average shares outstanding:
   Basic. . . . . . . . . . . . . . . . . . .   3,355,000    3,168,000
   Diluted. . . . . . . . . . . . . . . . . .   3,669,000    3,774,000

<FN>

SEE  NOTES  TO  CONSOLIDATED  FINANCIAL  STATEMENTS
</TABLE>


<TABLE>
<CAPTION>

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

                                               For the Six Months Ended
                                                       June 30,
                                                  2000         1999
                                               -----------  -----------
<S>                                            <C>          <C>
Interest Income:
 Loans. . . . . . . . . . . . . . . . . . . .  $    7,846   $    6,483
 Taxable investment securities. . . . . . . .         514          468
 Nontaxable investment securities . . . . . .         270          246
 Federal funds sold . . . . . . . . . . . . .          69           12
 Other. . . . . . . . . . . . . . . . . . . .          80           45
                                               -----------  -----------
                                                    8,779        7,254
                                               -----------  -----------
Interest Expense:
 Deposits . . . . . . . . . . . . . . . . . .       3,541        2,825
 Other. . . . . . . . . . . . . . . . . . . .         395          278
                                               -----------  -----------
                                                    3,936        3,103
                                               -----------  -----------
     Net interest income. . . . . . . . . . .       4,843        4,151
Provision for loan losses . . . . . . . . . .        (198)        (210)
                                               -----------  -----------
     Net interest income after
      provision for loan losses . . . . . . .       4,645        3,941
                                               -----------  -----------

Noninterest income:
 Service charges and fees on deposit accounts         190          106
 Credit card service fees and income. . . . .         187          159
 Insurance commission fee income. . . . . . .         146          122
 Gain on sale of securities . . . . . . . . .          10           22
 Other income . . . . . . . . . . . . . . . .         302          374
                                               -----------  -----------
                                                      835          783
                                               -----------  -----------
Noninterest expenses:
 Salaries, wages and benefits . . . . . . . .       2,002        1,694
 Occupancy. . . . . . . . . . . . . . . . . .         294          287
 Furniture, fixtures and equipment. . . . . .         333          311
 Other expenses . . . . . . . . . . . . . . .         925          820
                                               -----------  -----------
                                                    3,554        3,112
                                               -----------  -----------
Income before income taxes. . . . . . . . . .       1,926        1,612
Provision for income taxes. . . . . . . . . .        (605)        (463)
                                               -----------  -----------
Net income. . . . . . . . . . . . . . . . . .  $    1,321   $    1,149
                                               ===========  ===========

Net income per share:
   Basic. . . . . . . . . . . . . . . . . . .  $      .40   $      .36
   Diluted. . . . . . . . . . . . . . . . . .  $      .36   $      .30
Average shares outstanding:
   Basic. . . . . . . . . . . . . . . . . . .   3,336,000    3,165,000
   Diluted. . . . . . . . . . . . . . . . . .   3,687,000    3,772,000

<FN>

SEE  NOTES  TO  CONSOLIDATED  FINANCIAL  STATEMENTS
</TABLE>


<TABLE>
<CAPTION>

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

                                                                                Accumulated
                                                                                  other
                                                    Additional                 comprehensive   Nonvested        Total
                                        Common        paid-in       Retained      (loss)      restricted    shareholders'
                                        stock         capital       earnings    income, net      stock         equity
                                     ------------  --------------  ----------  -------------  -----------  ---------------
<S>                                  <C>           <C>             <C>         <C>            <C>          <C>
Balance at December 31, 1998. . . .  $      3,039  $       12,726           -  $        313        ($404)  $       15,674
Net income for the six months
 ended June 30, 1999. . . . . . . .             -               -       1,149             -            -            1,149
Other comprehensive income:
Unrealized gain on securities:
 Unrealized holding losses arising
  during the period, net
  of tax of ($307). . . . . . . . .             -               -           -          (486)           -                -
 Less: reclassification adjustment
  for gains included in net
  income, net of tax of $6. . . . .             -               -           -           (16)           -                -
                                                                               -------------
 Other comprehensive loss . . . . .             -               -           -          (502)           -             (502)
                                                                               -------------               ---------------
Comprehensive income. . . . . . . .             -               -           -             -            -              647
                                                                                                           ---------------
Employee stock options exercised. .            11              31           -             -            -               42
Amortization of deferred
 compensation on restricted stock .             -               -           -             -           50               50
                                     ------------  --------------  ----------  -------------  -----------  ---------------
Balance at June 30, 1999. . . . . .  $      3,050  $       12,757  $    1,149         ($189)       ($354)  $       16,413
                                     ============  ==============  ==========  =============  ===========  ===============


Balance at December 31, 1999. . . .  $      3,244  $       14,730  $      482         ($563)       ($303)  $       17,590
Net income for the six months
 ended June 30, 2000. . . . . . . .             -               -       1,321             -            -            1,321
Other comprehensive income:
Unrealized gain on securities:
 Unrealized holding losses arising
  during the period, net
  of tax of ($16) . . . . . . . . .             -               -           -           (27)           -                -
 Less: reclassification adjustment
  for gains included in net
  income, net of tax of $4. . . . .             -               -           -            (6)           -                -
                                                                               -------------
 Other comprehensive loss . . . . .             -               -           -           (33)           -              (33)
                                                                               -------------               ---------------
Comprehensive income. . . . . . . .             -               -           -             -            -            1,288
                                                                                                           ---------------
Employee stock options exercised. .           164             342           -             -            -              506
Restricted stock issued . . . . . .            14             141           -             -         (155)               -
Amortization of deferred
 compensation on restricted stock .             -               -           -             -           63               63
                                     ------------  --------------  ----------  -------------  -----------  ---------------
Balance at June 30, 2000. . . . . .  $      3,422  $       15,213  $    1,803         ($596)       ($395)  $       19,447
                                     ============  ==============  ==========  =============  ===========  ===============

<FN>

SEE  NOTES  TO  CONSOLIDATED  FINANCIAL  STATEMENTS
</TABLE>


<TABLE>
<CAPTION>

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

                                                       For  the  Six  Months  Ended
                                                                     June 30,
                                                                 2000       1999
                                                               ---------  ---------
<S>                                                            <C>        <C>
Cash flows from operating activities:
 Net income . . . . . . . . . . . . . . . . . . . . . . . . .  $  1,321   $  1,149
Adjustments to reconcile net income to net cash
 provided by operating activities:
    Provision for loan losses . . . . . . . . . . . . . . . .       198        210
    Depreciation and amortization . . . . . . . . . . . . . .       242        252
    Gain on sale of equipment and vehicles. . . . . . . . . .         -        (26)
    Gain on sale securities available for sale. . . . . . . .       (10)       (22)
    Net amortization of net premium on investments. . . . . .        17         44
    Amortization of deferred compensation on restricted stock        63         50
    (Increase) decrease in other assets . . . . . . . . . . .      (102)        33
    Increase in other liabilities . . . . . . . . . . . . . .       105        355
    Deferred income taxes . . . . . . . . . . . . . . . . . .       (36)         -
                                                               ---------  ---------
Net cash provided by operating activities . . . . . . . . . .     1,798      2,045
                                                               ---------  ---------

Cash flows from investing activities:
  Purchases of securities available for sale. . . . . . . . .    (3,805)    (2,888)
  Proceeds from maturities of securities available for sale .       606      2,905
  Proceeds from sales of securities available for sale. . . .     2,912      1,021
  Purchases of investments in FHLB and other stock. . . . . .      (450)      (146)
  Net increase in loans . . . . . . . . . . . . . . . . . . .    (9,604)   (10,943)
  Purchases of premises and equipment . . . . . . . . . . . .      (139)      (155)
  Proceeds from sale of equipment and vehicles. . . . . . . .         -         49
                                                               ---------  ---------
Net cash used in investing activities . . . . . . . . . . . .   (10,480)   (10,157)
                                                               ---------  ---------

Cash flows from financing activities:
  Net increase in deposit accounts. . . . . . . . . . . . . .     9,988     13,320
  Net decrease in federal funds purchased . . . . . . . . . .    (4,000)    (3,566)
  Repayment of other short-term borrowings. . . . . . . . . .         -       (320)
  Proceeds from FHLB advances . . . . . . . . . . . . . . . .    20,000     10,550
  Repayments of FHLB advances . . . . . . . . . . . . . . . .    (9,000)    (9,550)
  Proceeds from employee stock options exercised. . . . . . .       506         42
                                                               ---------  ---------
Net cash provided by financing activities . . . . . . . . . .    17,494     10,476
                                                               ---------  ---------
Net increase in cash and cash equivalents . . . . . . . . . .     8,812      2,364
Cash and cash equivalents, beginning of period. . . . . . . .     9,821      6,400
                                                               ---------  ---------
Cash and cash equivalents, end of period. . . . . . . . . . .  $ 18,633   $  8,764
                                                               =========  =========

SUPPLEMENTAL INFORMATION:
Cash paid during the period for interest. . . . . . . . . . .  $  3,765   $  3,140
Cash paid during the period for income taxes. . . . . . . . .  $    712   $    525
Change in fair market value of investment securities
 available for sale, net of income taxes. . . . . . . . . . .      ($33)     ($502)

<FN>

SEE  NOTES  TO  CONSOLIDATED  FINANCIAL  STATEMENTS
</TABLE>



                          SUMMIT FINANCIAL CORPORATION
     CONDENSED  NOTES  TO  CONSOLIDATED  FINANCIAL  STATEMENTS
                                  JUNE 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 June 30, 2000 and for the three month and
six  month periods ended June 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 June 30, 2000, and the results of
operations and cash flows for the periods ended June 30, 2000 and 1999 have been
included.  The  results  for the three month or six month periods ended June 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  $18,633,000 and
$8,764,000  at  June  30,  2000  and  1999,  respectively.


<PAGE>
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 quarter and the six months
ended  June  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
distributions  as  of  the  earliest period presented.  (All numbers, except per
share  data,  in  thousands).

<TABLE>
<CAPTION>

                                      For the Quarter Ended June 30,
                                     2000     2000     1999     1999
                                   --------  ------  --------  ------
                                    BASIC   DILUTED   BASIC   DILUTED
                                   ------  --------  ------  --------
<S>                                <C>       <C>     <C>       <C>
Net Income. . . . . . . . . . . .  $    669  $  669  $    582  $  582
                                   --------  ------  --------  ------
Weighted average shares
 outstanding. . . . . . . . . . .     3,355   3,355     3,168   3,168
Effective of Dilutive Securities:
    Stock options . . . . . . . .         -     267         -     573
    Unvested restricted stock . .         -      47         -      33
                                   --------  ------  --------  ------
                                      3,355   3,669     3,168   3,774
                                   --------  ------  --------  ------
Per-share amount. . . . . . . . .  $   0.20  $ 0.18  $   0.18  $ 0.15
                                   ========  ======  ========  ======

</TABLE>


<TABLE>
<CAPTION>

                                    For the Six Months Ended June 30,
                                     2000     2000     1999     1999
                                   --------  ------  --------  ------
                                    BASIC   DILUTED   BASIC   DILUTED
                                   -------  --------  ------  --------
<S>                                <C>       <C>     <C>       <C>
Net Income. . . . . . . . . . . .  $  1,321  $1,321  $  1,149  $1,149
                                   --------  ------  --------  ------
Weighted average shares
 outstanding. . . . . . . . . . .     3,336   3,336     3,165   3,165
Effective of Dilutive Securities:
    Stock options . . . . . . . .         -     304         -     574
    Unvested restricted stock . .         -      47         -      33
                                   --------  ------  --------  ------
                                      3,336   3,687     3,165   3,772
                                   --------  ------  --------  ------
Per-share amount. . . . . . . . .  $   0.40  $ 0.36  $   0.36  $ 0.30
                                   ========  ======  ========  ======

</TABLE>


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>
                                                                                         At and For the
                                 For the quarter ended June 30, 2000            Six Months Ended June 30, 2000
                             Bank      Finance    Corporate     Total      Bank     Finance    Corporate    Total
                           ---------  ---------  -----------  ---------  --------  ---------  -----------  --------
<S>                        <C>        <C>        <C>          <C>        <C>       <C>        <C>          <C>
Interest income . . . . .  $  4,114   $    410         ($26)  $  4,498   $ 7,953   $    875         ($49)  $ 8,779
Interest expense. . . . .    (2,050)       (83)          74     (2,059)   (3,918)      (159)         141    (3,936)
                           ---------  ---------  -----------  ---------  --------  ---------  -----------  --------
Net interest income . . .     2,064        327           48      2,439     4,035        716           92     4,843
Provision for loan losses       (72)       (33)           -       (105)     (137)       (61)           -      (198)
Other income. . . . . . .       369         76          (12)       433       689        170          (24)      835
Other expenses. . . . . .    (1,422)      (377)          (2)    (1,801)   (2,782)      (766)          (6)   (3,554)
                           ---------  ---------  -----------  ---------  --------  ---------  -----------  --------
Income before taxes . . .       939         (7)          34        966     1,805         59           62     1,926
Income taxes. . . . . . .      (285)         2          (14)      (297)     (558)       (22)         (25)     (605)
                           ---------  ---------  -----------  ---------  --------  ---------  -----------  --------
Net income. . . . . . . .  $    654        ($5)  $       20   $    669   $ 1,247   $     37   $       37   $ 1,321
                           =========  =========  ===========  =========  ========  =========  ===========  ========
Net loans . . . . . . . .                                                $153,607   $  2,966    ($1,160)  $155,413
                                                                         =========  ========  ==========  =========
Total assets. . . . . . .                                                $207,660   $  3,724    ($1,206)  $210,178
                                                                        =========  =========  ==========  =========

</TABLE>


<TABLE>
<CAPTION>

                                                                                         At and For the
                                 For the quarter ended June 30, 1999            Six Months Ended June 30, 1999
                             Bank      Finance    Corporate     Total      Bank     Finance    Corporate    Total
                           ---------  ---------  -----------  ---------  --------  ---------  -----------  --------
<S>                        <C>        <C>        <C>          <C>        <C>       <C>        <C>          <C>
Interest income . . . . .  $  3,309   $    403         ($22)  $  3,690   $ 6,449   $    851         ($46)  $ 7,254
Interest expense. . . . .    (1,575)       (67)          58     (1,584)   (3,086)      (135)         118    (3,103)
                           ---------  ---------  -----------  ---------  --------  ---------  -----------  --------
Net interest income . . .     1,734        336           36      2,106     3,363        716           72     4,151
Provision for loan losses      (100)       (29)           -       (129)     (140)       (70)           -      (210)
Other income. . . . . . .       324         78          (12)       390       641        166          (24)      783
Other expenses. . . . . .    (1,175)      (373)          (2)    (1,550)   (2,368)      (740)          (4)   (3,112)
                           ---------  ---------  -----------  ---------  --------  ---------  -----------  --------
Income before taxes . . .       783         12           22        817     1,496         72           44     1,612
Income taxes. . . . . . .      (227)        (2)          (6)      (235)     (426)       (25)         (12)     (463)
                           ---------  ---------  -----------  ---------  --------  ---------  -----------  --------
Net income. . . . . . . .  $    556   $     10   $       16   $    582   $ 1,070   $     47   $       32   $ 1,149
                           =========  =========  ===========  =========  ========  =========  ===========  ========
Net loans . . . . . . . .                                                $138,075   $  2,560    ($1,060)  $139,575
                                                                        =========  =========  ==========  =========
Total assets. . . . . . .                                                $179,419   $  3,376    ($1,090)  $181,705
                                                                        =========  =========  ==========  =========

</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 six
month  periods  ended June 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  three  full  service  offices in
Greenville,  South  Carolina  and a loan production office in 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 June 30, 2000, the Company's net income totaled
$669,000  or $.18 per diluted share.  This is compared to net income of $582,000
or  $.15  per diluted share for the same quarterly period of 1999 or an increase
of  15.0%.  For the first six months of 2000, the Company reported net income of
$1,321,000  or $0.36 per diluted share, an improvement of approximately $172,000
or  15%  from  the  net income for the first six months of 1999 of $1,149,000 or
$0.30  per  diluted  share.

BALANCE  SHEET  ACTIVITY
     Total assets increased $18.9 million or 9.9% from December 31, 1999 to June
30,  2000.  Deposits  increased  approximately  $10.0 million or 6.3% during the
period.  A  majority of the increase in deposits was in the money market deposit
category  which  accounted  for  $6.5 million of the increase and jumbo (greater
than $100,000) certificates of deposit category which accounted for $4.9 million
of  the  increase.  The  increase  in  deposits funded gross loan growth of $9.5
million  (6.4%).  Increases  in  liquidity  (cash, interest-bearing deposits and
federal  funds  sold)  was  related  to  the 122% ($11 million) increase in FHLB
advances.

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  June  30,  2000,  the  consolidated  allowance for loan losses was $2.3
million  or  1.45%  of  total loans net of unearned income.  This compares to an
allowance of $2.2 million or 1.45% of total loans net of unearned income at June
30,  1999.  For  the  quarter  ended  June  30,  2000,  the  Company  reported
consolidated  net  charge-offs  of  $36,000  or  0.09%  of  average  loans on an
annualized  basis.  This  is compared to consolidated net charge-offs of $23,000
or  0.07% (annualized) of average loans for the comparable quarter of 1999.  For
the  six months ended June 30, 2000, net charge-offs totaled $82,000 or 0.05% of
average  loans  on  an  annualized  basis.  This is compared to consolidated net
recoveries  of  ($13,000)  or  0.02% (annualized) of average loans for the prior
year.

     There  were  no  loans  on  nonaccrual status at June 30, 1999 and loans on
nonaccrual  at  June  30,  2000 totaled $147,000 or 0.09% of total loans.  Loans
past due 90 days and greater totaled $73,000 or 0.05% of gross loans at June 30,
2000  and $328,000 or 0.23% of gross loans at June 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  June  30, 2000 represents
management's  estimate of probable losses inherent in the loan portfolio at that
date.



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

GENERAL
     The Company reported consolidated net income for the quarter ended June 30,
2000  of $669,000, compared to net income of $582,000 for the quarter ended June
30,  1999, or an improvement of approximately $87,000 or 15.0%.  The increase in
consolidated  earnings  for  the  2000  period  is primarily attributable to the
$333,000 or 15.8% 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  11.9%  in 2000 as compared to the prior year, combined
with  the  higher  net  interest  margin  for  the  second quarter of 2000 which
increased  19 basis points from the prior year.  Somewhat offsetting these items
is  the  increase  in  noninterest  expenses  of  approximately  16.2%.

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 June 30,
2000,  the  Company recorded consolidated net interest income of $2.4 million, a
15.8%  increase  from  the  net  interest income of $2.1 million for the quarter
ended  June  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  11.9% and 11.5% respectively, combined with the 19 basis point
increase  in  the  net  interest  margin  for  the  Company.

     For  the  quarter  ended June 30, 2000 and 1999, the Company's consolidated
net  interest margin was 5.42% and 5.23%, respectively.  The net interest margin
is  calculated as annualized net interest income divided by year-to-date average
earning  assets.  The  increase  in  consolidated net interest margin is related
primarily to the increasing interest rate environment in the latter half of 1999
and  into  2000.  During  this period, the prime rate increased 175 basis points
resulting  in  an  average  prime  rate  of 9.25% for the second quarter of 2000
compared  to  7.75% for the prior year.  The increase in average yield on assets
was partially offset by the related increase in the average cost of liabilities.

INTEREST  INCOME
     For  the quarter ended June 30, 2000, the Company's earning assets averaged
$186.2  million  and  had  an  average yield of 9.87%.  This compares to average
earning  assets  of  $166.5  million  for  the  second quarter of 1999, yielding
approximately  9.04%.  Thus,  the  11.9%  increase  in volume of average earning
assets, combined with the 83 basis point increase in average yield, accounts for
the  $808,000  (21.9%) increase in interest income between the second quarter of
1999  and  2000.

     Consolidated  loans  comprised  approximately  83% of the Company's average
earning  assets  for  both the second quarter of 2000 and 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 June 30, 2000), which averaged 9.25% and 7.75%
for  the quarters ended June 30, 2000 and 1999, respectively.  During the second
quarter of 2000, consolidated loans averaged $154.6 million, yielding an average
of  10.46%,  compared  to  $137.8  million, yielding an average of 9.61% for the
second  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 12.2%), combined with the increase in average
rate,  resulted  in the higher consolidated interest income on loans of $719,000
or  21.8%.

     Investment  securities  averaged  $26.4 million or 14.2% of average earning
assets  and  yielded  7.13%  (tax equivalent basis) during the second quarter of
2000,  compared  to  average  securities  of  $26.2  million yielding 6.43% (tax
equivalent  basis)  for  the  quarter  ended June 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,  combined  with the 1.0% increase in
average securities, resulted in the increase of interest income on securities of
$43,000.

INTEREST  EXPENSE
     The Company's interest expense for the quarter ended June 30, 2000 was $2.1
million.  The  increase  of  30.0%  from  the comparable quarter in 1999 of $1.6
million  was directly related to the 78 basis point increase in the average rate
on  liabilities,  combined  with  the 11.5% increase in volume. Interest-bearing
liabilities  averaged  $154.6  million  for  the  second quarter of 2000 with an
average  rate of 5.36%. This is compared to average interest-bearing liabilities
of  $138.6  million with an average rate of 4.58% for the quarter ended June 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
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 June 30, 2000 is a
provision  for  loan  losses of $105,000 compared to a provision of $129,000 for
the  second  quarter  of 1999.  The reduction in the provision is related to the
timing  and  amount  of  net loan originations for the second quarter of 2000 as
compared  to  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 $433,000 for the quarter ended June
30,  2000 compared to $390,000 for the second quarter of 1999, or an increase of
11.0%.  Increases  in  service  charges, credit card/merchant fees, and gains on
sales  of  available  for sale investment securities accounted for a majority of
the  increase.  The  increases  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 June 30, 2000, noninterest expenses were $1.8 million
which  is  an  increase  of 16.2% over the amount incurred for the quarter ended
June  30,  1999  of  $1.6  million.  The most significant item included in other
expenses  is salaries, wages and benefits which amounted to $1.0 million for the
quarter  ended  June 30, 2000 as compared to $852,000 for the quarter ended June
30,  1999.  The  increase  of  $178,000  or  20.9%  is a result of normal annual
raises,  replacement  of  staff  due  to  turnover  at  higher  salaries, higher
incentive  bonus  accruals  related to new bonus plans put in place in 2000, and
the  commencement  of  a loan production office in April 2000 staffed with three
high  level  management  employees.

     Occupancy and furniture, fixtures, and equipment ("FFE") expenses increased
slightly  (6.3%  and  5.7%, respectively) between the second quarter of 2000 and
1999  related  primarily  to  the  expenses  associated with the loan production
office  which  commenced  operations  in  April  2000.

     Included  in  the  line  item  "other  operating expenses", which increased
$55,000  or  13.8%  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 increase is primarily
related  to  (1) additional printing, telephone, and office support expenses and
higher  marketing  expenses  related  to the loan production office ; (2) higher
levels  of  legal  fees related to loan collection efforts; (3) higher directors
fees  due to an increase in attendance fees; (4) security expense related to Y2K
staffing in January, and (5) increases in credit card/merchant and other deposit
related  expenses  due  to  general  business  volume  increases.

INCOME  TAXES
     For  the  quarter  ended  June  30,  2000, the Company reported $297,000 in
income  tax  expense,  or  an  effective tax rate of 30.7%.  This is compared to
income  tax  expense  of  $235,000  for the same period of the prior year, or an
effective  tax  rate  of  28.8%. 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 SIX MONTHS ENDED JUNE 30, 2000 AND
1999

GENERAL
     The  Company reported consolidated net income for the six months ended June
30,  2000 of $1,321,000, compared to net income of $1,149,000 for the six months
ended  June 30, 1999, or an improvement of approximately $172,000 or 15.0%.  The
increase  in consolidated earnings for the 2000 period is primarily attributable
to  the  $692,000 or 16.7% 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.  Offsetting the increase in net
interest  income  and noninterest income is the increase in noninterest expenses
of  approximately  14.2%.

NET  INTEREST  INCOME
     Net  interest  income,  the  difference  between  the  interest  earned and
interest paid, is the largest component of the Company's earnings and changes in
it  have the greatest impact on net income.  Variations in the volume and mix of
assets and liabilities and their relative sensitivity to interest rate movements
determine  changes in net interest income.  During the six months ended June 30,
2000,  the  Company recorded consolidated net interest income of $4.8 million, a
16.7%  increase  from the net interest income of $4.2 million for the six months
ended  June  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  12.7% and 12.6% respectively, combined with the 16 basis point
increase  in  the  net  interest  margin  for  the  Company.

     For the six months ended June 30, 2000 and 1999, the Company's consolidated
net  interest margin was 5.48% and 5.32%, respectively.  The net interest margin
is  calculated as annualized net interest income divided by year-to-date average
earning  assets.  The  increase  in  consolidated net interest margin is related
primarily  to the general rising interest rate environment from mid-1999 through
2000.

INTEREST  INCOME
     For  the  six  months  ended  June  30,  2000, the Company's earning assets
averaged  $182.8  million  and  had an average yield of 9.81%.  This compares to
average  earning  assets  of  $162.2  million  for the first six months of 1999,
yielding  approximately  9.18%.  Thus,  the  12.7% increase in volume of average
earning  assets,  combined  with  the  63 basis point increase in average yield,
accounts  for  the $1.5 million (21.0%) increase in interest income between 1999
and  2000.

     Consolidated  loans  averaged  approximately  83%  of the Company's average
earning  assets for both the first six months of 2000 and 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 June 30, 2000), which averaged 8.97% and 7.75%
for the six months ended June 30, 2000 and 1999, respectively.  During the first
six  months  of  2000,  consolidated  loans averaged $151.7 million, yielding an
average  of 10.40%, compared to $133.9 million, yielding an average of 9.76% for
the  first six months of 1999.  The 64 basis point increase in the average yield
on  loans  is primarily related to the higher prime lending rate which increased
175  basis points from mid-1999 through 2000.  The higher level of average loans
(which  increased 13.3%) combined with the increase in average rate and resulted
in  an  increase  in  consolidated  interest  income on loans of $1.4 million or
21.0%.

     Investment  securities  averaged  $26.3  million  or 14% of average earning
assets  and  yielded 7.07% (tax equivalent basis) during the first six months of
2000,  compared  to  average  securities  of  $26.4  million yielding 6.43% (tax
equivalent  basis)  for the six months ended June 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  64  basis point increase in yield on investment
securities resulted in the increase in interest income on securities of $70,000.

INTEREST  EXPENSE
     The  Company's  interest expense for the six months ended June 30, 2000 was
$3.9  million.  The  increase of 26.8% from the comparable six months in 1999 of
$3.1 million was directly related to the 12.6% increase in the volume of average
interest-bearing  liabilities,  combined with the 57 basis point increase in the
average  rate  on  liabilities.  Interest-bearing  liabilities  averaged  $152.5
million  for the first six months of 2000 with an average rate of 5.19%. This is
compared  to  average  interest-bearing  liabilities  of  $135.4 million with an
average  rate  of 4.62% for the six months ended June 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.

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 six months ended June 30, 2000 is a
provision  for  loan  losses of $198,000 compared to a provision of $210,000 for
the  first  six months of 1999.  The decrease in the provision is related to the
timing  and  amount  of  net  originations experienced by the Company during the
first  six  months  of  2000  as  compared  to  the  same  period  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 $835,000 for the six months ended June
30,  2000  compared to $783,000 for the first six months of 1999, or an increase
of 6.6%.  Increases in service charges, credit card/merchant fees, and insurance
commissions  accounted  for  a  majority  of  the  increase.  The  increases are
primarily  related  to the higher level of activity and transactions of the Bank
generating  other income in the normal course of business.  These increases were
offset  by  reductions  in  gains  on sales of investment securities and company
vehicles  and  lower  commissions  on  nondeposit  product  sales.

     For  the  six  months  ended June 30, 2000, total noninterest expenses were
$3.6  million which is an increase of 14.2% over the amount incurred for the six
months  ended June 30, 1999 of $3.1 million.  The most significant item included
in other expenses is salaries, wages and benefits which amounted to $2.0 million
for  the  six months ended June 30, 2000 as compared to $1.7 million for the six
months  ended  June  30, 1999.  The increase of $308,000 or 18.2% is a result of
normal  annual  raises, replacement of staff due to turnover at higher salaries,
higher incentive bonus accruals related to new bonus plans put in place in 2000,
and  the  commencement  of  a  loan production office in April 2000 staffed with
three  high  level  management  employees.

     Occupancy and furniture, fixtures, and equipment ("FFE") expenses increased
slightly  (2.4% and 7.1%, respectively) between the first six months of 2000 and
1999  related  primarily  to  the  expenses  associated with the loan production
office  which  commenced  operations  in  April  2000.

     Included  in  the  line  item  "other  operating expenses", which increased
$105,000  or  12.8%  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 increase is primarily
related  to  (1) additional printing, telephone, and office support expenses and
higher  marketing  expenses  related  to the loan production office ; (2) higher
levels  of  legal  fees related to loan collection efforts; (3) higher directors
fees  due to an increase in attendance fees; (4) security expense related to Y2K
staffing in January, and (5) increases in credit card/merchant and other deposit
related  expenses  due  to  general  business  volume  increases.


INCOME  TAXES
     For  the  six  months ended June 30, 2000, the Company reported $605,000 in
income  tax  expense,  or  an  effective tax rate of 31.4%.  This is compared to
income  tax  expense  of  $463,000  for the same period of the prior year, or an
effective  tax  rate  of  28.7%. 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
12%  of  average  assets  for both the six month periods ended June 30, 2000 and
1999.  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 June 30, 2000, the Company had approximately $27 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  $2.6  million  in  available liquidity remaining from its initial
public  offering  and  the  retention  of  earnings.  Substantially  all of this
liquidity  was advanced to the Finance Company to fund its operations as of June
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  June  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 June 30, 2000 was $19.4 million or 9.3% of
total  assets.  This  is  compared  to  $17.6 million or 9.2% of total assets at
December  31,  1999.  The  $1.8  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  June  30,  2000  and 1999 was $5.68 and $5.16,
respectively.  Tangible book value per share at June 30, 2000 and 1999 was $5.56
and  $5.02,  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 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 June 30, 2000,
that  the  Company  and the Bank meet all capital adequacy requirements to which
they  are subject.  At June 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 June 30, 2000 and 1999 as well as
the  minimum  calculated  amounts  for  each  regulatory  defined  category.


<TABLE>
<CAPTION>

                              RISK-BASED CAPITAL CALCULATION

                                                          FOR CAPITAL    TO BE CATEGORIZED
                                            ACTUAL     ADEQUACY PURPOSES "WELL-CAPITALIZED"
                                        AMOUNT   RATIO   AMOUNT   RATIO   AMOUNT   RATIO
                                        -------  ------  -------  ------  -------  ------
<S>                                     <C>      <C>     <C>      <C>     <C>      <C>
AS OF JUNE 30, 2000
THE COMPANY
Total capital to risk-weighted assets.  $22,164  12.92%  $13,723   8.00%        N.A.
Tier 1 capital to risk-weighted assets  $20,020  11.67%  $ 6,862   4.00%        N.A.
Tier 1 capital to average assets . . .  $20,020  10.31%  $ 7,768   4.00%        N.A.

THE BANK
Total capital to risk-weighted assets.  $19,298  11.60%  $13,311   8.00%  $16,639  10.00%
Tier 1 capital to risk-weighted assets  $17,242  10.36%  $ 6,655   4.00%  $ 9,983   6.00%
Tier 1 capital to average assets . . .  $17,242   9.00%  $ 7,667   4.00%  $ 9,583   5.00%

AS OF JUNE 30, 1999
THE COMPANY
Total capital to risk-weighted assets.  $18,253  12.18%  $11,989   8.00%       N.A.
Tier 1 capital to risk-weighted assets  $16,380  10.93%  $ 5,994   4.00%       N.A.
Tier 1 capital to average assets . . .  $16,380   9.50%  $ 6,898   4.00%       N.A.

THE BANK
Total capital to risk-weighted assets.  $16,590  11.26%  $11,790   8.00%  $14,737  10.00%
Tier 1 capital to risk-weighted assets  $14,773  10.02%  $ 5,895   4.00%  $ 8,842   6.00%
Tier 1 capital to average assets . . .  $14,773   8.68%  $ 6,808   4.00%  $ 8,510   5.00%

</TABLE>


ACCOUNTING,  REPORTING  AND  REGULATORY  MATTERS
     In  June  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  June  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  $8.2  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 increased between the
first  six  months of 1999 and 2000 primarily as a result of 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 June 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.



                          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.

          At  the Annual Meeting of Shareholders held April 18, 2000 pursuant to
the Notice of Annual Meeting of Shareholders and Proxy Statement dated March 20,
2000,  the  following  matters  were  voted  on:

          (1)  election  of  3  nominees  for  directors  to  terms  of 3 years:
2,876,596  shares  (99.4%  of  the  votes  cast)  voted  FOR the election of the
directors;  and
          (2)  the  approval  of the Summit Financial Corporation 1999 Incentive
Stock  Option  Plan:  1,779,815  shares  (95%  of  the votes cast) voted FOR the
approval;  93,901  shares  AGAINST;  5,255  shares  ABSTAIN  (note  that  broker
non-votes  were  excluded).

          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:  August  9,  2000

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


Dated:  August  9,  2000

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