FORM 10-Q

                      SECURITIES AND EXCHANGE COMMISSION
                            Washington, D.C.  20549

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

                 For The Quarterly Period Ended March 31, 1997

                       Commission File Number  000-19235

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


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

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

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


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

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

As  of  April 21, 1997, 1,342,413, shares of $1.00 par value common stock were
outstanding.

<PAGE>
                         SUMMIT FINANCIAL CORPORATION

                               TABLE OF CONTENTS


PART  I  -  FINANCIAL  INFORMATION


Item

1.          Consolidated  Financial  Statements  (Unaudited):

     Consolidated  Balance  Sheets  as of March 31, 1997 and December 31, 1996

     Consolidated  Statements  of  Operations  for  the  Three  Months and the
     Quarters  Ended  March  31,  1997  and  1996

     Consolidated  Statements  of  Shareholders'  Equity  for the Three Months
     Ended  March  31,  1997  and  for  the  Year  Ended  December  31,  1996

     Consolidated  Statements  of  Cash  Flows  for  the  Three  Months  Ended
     March  31,  1997  and  1996

     Notes  to  Consolidated  Financial  Statements

2.          Management's  Discussion  and  Analysis  of  Financial  Condition
     and  Results  of  Operations  for  the  and  the  Three  Months  and  the
     Quarters  Ended  March  31,  1997  and  1996


Part  II  -  Other  Information


Signatures


<PAGE>
<TABLE>
<CAPTION>

                             SUMMIT FINANCIAL CORPORATION
                             CONSOLIDATED BALANCE SHEETS


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

ASSETS:
Cash and interest-bearing deposits                    $     5,486,493   $   6,026,267
Federal funds sold                                          6,070,000       3,000,000
Investment securities available for sale
(amortized cost of $18,862,000 and $18,510,000)            18,736,711      18,510,478
Investments in stock of Federal Reserve Bank,
Federal Home Loan Bank, and other, at cost                    692,940         634,340
Loans, net of unearned income and net of allowance
for loan losses of $1,602,886 and $1,486,873              104,726,010     101,204,867
Premises and equipment, net                                 2,519,634       2,501,937
Accrued interest receivable                                   885,495         940,479
Other assets                                                1,512,126       1,343,798
                                                      ----------------  -------------
     TOTAL ASSETS                                     $   140,629,409   $ 134,162,166
                                                      ================  =============
LIABILITIES & SHAREHOLDERS' EQUITY:
Demand deposits                                       $    13,219,033   $  17,484,409
Interest-bearing demand deposits                            7,334,695       6,227,317
Savings and money market deposits                          31,275,632      23,366,281
Time deposits, $100,000 and over                           25,585,180      25,392,780
Other time deposits                                        45,419,184      45,334,608
                                                      ----------------  -------------
     TOTAL DEPOSITS                                       122,833,724     117,805,395
Securities sold under repurchase agreements                   770,965         761,047
Other borrowings                                            3,500,000       2,550,000
Accrued interest payable                                      906,441         822,911
Other liabilities                                             679,782         585,915
                                                      ----------------  -------------
     TOTAL LIABILITIES                                    128,690,912     122,525,268
                                                      ----------------  -------------
SHAREHOLDERS' EQUITY:
Common stock ($1.00 par value; 20,000,000 shares
authorized; issued and outstanding 1,342,413 and
1,334,409 shares)                                           1,342,413       1,334,409
Additional paid-in capital                                 10,292,040      10,254,039
Retained earnings                                             387,044          48,450
Unrealized net (loss) gain on investments available
for sale, net of income taxes                                 (83,000)              -
                                                      ----------------  -------------
     TOTAL SHAREHOLDERS' EQUITY                            11,938,497      11,636,898
                                                      ----------------  -------------
     TOTAL LIABILITIES AND EQUITY                     $   140,629,409   $ 134,162,166
                                                      ================  =============
<FN>


SEE  NOTES  TO  CONSOLIDATED  FINANCIAL  STATEMENTS
</TABLE>




<PAGE>
<TABLE>
<CAPTION>

                         SUMMIT FINANCIAL CORPORATION
                     CONSOLIDATED STATEMENTS OF OPERATIONS
                                  (Unaudited)

                                                  For the Three Months and the
                                                      Quarters Ended March 31,

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

INTEREST INCOME:
 Loans                                               $2,672,962   $1,971,549 
 Taxable investment securities                          267,179      308,665 
 Nontaxable investment securities                         8,442        4,722 
 Federal funds sold                                      70,597       38,164 
 Other                                                   40,913       39,964 
                                                     -----------  -----------
                                                      3,060,093    2,363,064 
                                                     -----------  -----------
INTEREST EXPENSE:
 Deposits                                             1,338,888    1,116,376 
 Other                                                   61,535       46,440 
                                                     -----------  -----------
                                                      1,400,423    1,162,816 
                                                     -----------  -----------
Net interest income                                   1,659,670    1,200,248 
Provision for loan losses                               (87,000)     (83,000)
                                                     -----------  -----------
Net interest income after provision for loan losses   1,572,670    1,117,248 
                                                     -----------  -----------
OTHER INCOME:
 Service charges and fees                                48,956       42,892 
 Credit card service fees and income                     59,898       56,950 
 Insurance commission fee income                         50,251       45,296 
 Other income                                            80,160       97,698 
                                                     -----------  -----------
                                                        239,265      242,836 
                                                     -----------  -----------
OTHER OPERATING EXPENSES:
 Salaries, wages and benefits                           691,255      584,524 
 Occupancy                                              112,693       95,075 
 Furniture, fixtures and equipment                      106,154      100,799 
 Other operating expenses                               364,039      312,680 
                                                     -----------  -----------
                                                      1,274,141    1,093,078 
                                                     -----------  -----------
Net income before income taxes                          537,794      267,006 
Provision for income taxes                             (199,200)    (102,000)
                                                     -----------  -----------
NET INCOME                                           $  338,594   $  165,006 
                                                     ===========  ===========
PER SHARE DATA:
  Primary                                            $     0.24   $     0.12 
  Fully diluted                                      $     0.24   $     0.12 
AVERAGE SHARES OUTSTANDING:
  Primary                                             1,471,186    1,409,221 
  Fully Diluted                                       1,471,186    1,409,221 
<FN>


SEE  NOTES  TO  CONSOLIDATED  FINANCIAL  STATEMENTS
</TABLE>




<PAGE>
<TABLE>
<CAPTION>

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



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

Balance at December 31, 1995             1,267,251  $1,267,251  $ 9,342,451           -   $        53,800   $   10,663,502 
Net income for the year ended
 December 31, 1996                               -           -            -   1,001,774                 -        1,001,774 
Change in unrealized net gain (loss) on
 investment securities available for
 sale, net of income taxes                       -           -            -           -           (53,800)         (53,800)
Employee stock options exercised             3,728       3,728       23,568           -                 -           27,296 
Issuance of 5% stock distribution           63,430      63,430      888,020    (951,450)                -                - 
Cash in lieu of fractional shares from
 stock distribution                              -           -            -      (1,874)                -           (1,874)
                                         ---------  ----------  -----------  -----------  ----------------  ---------------
Balance at December 31, 1996             1,334,409   1,334,409   10,254,039      48,450                 -       11,636,898 
Net income for the three months
 ended March 31, 1997                            -           -            -     338,594                 -          338,594 
Change in unrealized net gain (loss) on
 investment securities available for
 sale, net of income taxes                       -           -            -           -           (83,000)         (83,000)
Employee stock options exercised             8,004       8,004       38,001           -                 -           46,005 
                                         ---------  ----------  -----------  -----------  ----------------  ---------------
Balance at March 31, 1997                1,342,413  $1,342,413  $10,292,040  $  387,044          ($83,000)  $   11,938,497 
                                         =========  ==========  ===========  ===========  ================  ===============

<FN>


SEE  NOTES  TO  CONSOLIDATED  FINANCIAL  STATEMENTS
</TABLE>





<PAGE>
<TABLE>
<CAPTION>

                                  SUMMIT FINANCIAL CORPORATION
                              CONSOLIDATED STATEMENTS OF CASH FLOWS
                                           (Unaudited)

                                                            For the Three Months Ended March 31,

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

CASH FLOWS FROM OPERATING ACTIVITIES:
 Net income                                                           $   338,594   $   165,006 
 Adjustments to reconcile net income to net cash
  provided by operating activities:
   Provision for loan losses                                               87,000        83,000 
   Depreciation and amortization                                           83,210        76,440 
   Net amortization (accretion) of net premium                              4,444           588 
    (discount) on investments
   Increase in other assets                                              (113,344)       (1,987)
   (Decrease) increase in other liabilities                               220,397      (390,056)
                                                                      ------------  ------------
Net cash provided by operating activities                                 620,301       (67,009)
                                                                      ------------  ------------
CASH FLOWS FROM INVESTING ACTIVITIES:
 Purchases of securities available for sale                            (1,694,015)   (5,315,743)
 Proceeds from maturities and sales of securities available for sale    1,337,338     1,914,259 
 Purchases of Federal Home Loan Bank Stock                                (58,600)      (92,000)
 Net increase in loans                                                 (3,109,144)   (5,890,363)
 Purchases of net finance loans receivable                               (498,999)     (176,730)
 Purchases of fixed assets                                               (100,907)      (11,088)
                                                                      ------------  ------------
Net cash used in investing activities                                  (4,124,327)   (9,571,665)
                                                                      ------------  ------------
CASH FLOWS FROM FINANCING ACTIVITIES:
 Net increase in deposit accounts                                       5,028,329     7,039,004 
 Net increase (decrease) in securities sold under repurchase                9,918      (952,625)
  agreements and federal funds purchased
 Repayment of other borrowings                                            (50,000)            - 
 Advances from other borrowings                                         1,000,000             - 
 Proceeds from stock issuance from employee stock option plan              46,005         9,761 
                                                                      ------------  ------------
Net cash provided by financing activities                               6,034,252     6,096,140 
                                                                      ------------  ------------
Net (decrease) increase in cash and cash equivalents                    2,530,226    (3,542,534)
Cash and cash equivalents, beginning of period                          9,026,267    15,445,071 
                                                                      ------------  ------------
Cash and cash equivalents, end of period                              $11,556,493   $11,902,537 
                                                                      ============  ============
SUPPLEMENTAL INFORMATION:
 Cash paid during period for interest                                 $ 1,316,893   $ 1,216,360 
 Cash paid during period for income taxes                             $    44,119   $   138,783 
 Change in market value of investment securities available            $   (83,000)  $   (53,800)
  for sale, net of income taxes
<FN>


SEE  NOTES  TO  CONSOLIDATED  FINANCIAL  STATEMENTS
</TABLE>




<PAGE>
                         SUMMIT FINANCIAL CORPORATION

                  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                                March 31, 1997


NOTE  1  -  BASIS  OF  PRESENTATION:

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

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

     The  unaudited  consolidated financial statements of the Company at March
31,  1997  and  for the periods ended March 31, 1997 and 1996 were prepared in
accordance  with  the  instructions  for  Form  10-Q  and,  in  the opinion of
management,  all  adjustments  (consisting only of items of a normal recurring
nature)  necessary  for a fair presentation of the financial position at March
31,  1997,  and the results of operations and cash flows for the periods ended
March  31,  1997  and 1996 have been included.  The results for the quarter or
three  month period ended March 31, 1997 are not necessarily indicative of the
results  that  may  be expected for the full year or any other interim period.

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

NOTE  2  -  CASH  FLOW  INFORMATION:

     The  Company  considers  those  amounts  included  in  the  balance sheet
captions  "Cash  and interest-bearing deposits" and "Federal funds sold" to be
cash  and cash equivalents, which totaled $11,556,493 and $11,902,537 at March
31,  1997 and 1996, respectively.  Cash includes currency and coin, cash items
in  process  of  collection  and  due  from  banks.  Included in cash and cash
equivalents are overnight investments and short-term investments with original
maturities  of  less  than  three  months.



<PAGE>
                         SUMMIT FINANCIAL CORPORATION

                         PART I. FINANCIAL INFORMATION

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

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

     For  the  first  three  months of 1997 the Company reported net income of
$339,000  or $.24 per share, an improvement of approximately $174,000 compared
to  the  net income for the first three months of 1996 of $165,000 or $.12 per
share.

     Total assets increased approximately $6.5 million or 5% from December 31,
1996  to  March  31,  1997.  Deposits increased approximately $5 million or 4%
during  the  period.    The increase in deposits, combined with the $1 million
(37%)  increase  in other borrowings, funded gross loan growth of $3.5 million
(3%)  and the $3 million (102%) increase in federal funds sold during the same
period.

RESULTS  OF  OPERATIONS  -  COMPARISON  OF THE THREE MONTHS AND QUARTERS ENDED
MARCH  31,  1997  AND  1996

GENERAL

     The  Company reported consolidated net income for the quarter ended March
31, 1997 of $339,000, compared to net income of $165,000 for the quarter ended
March  31,  1996,  or  an  improvement of approximately $174,000 or 105%.  The
increase  in  consolidated  earnings  for  the  1997  period  is  primarily
attributable  to  a  $459,000  or  38%  increase in the Company's net interest
income  related  to  the higher level of earning assets in 1997 as compared to
the  prior  year.   The increase in net interest income was somewhat offset by
increases  in  other  operating  expenses.  The Company on a stand-alone basis
recorded net income of $20,000 for the first quarter of 1997 related primarily
to  the  interest  income  from  an  intercompany loan to its consumer finance
subsidiary.

     Summit  National  Bank  recorded net earnings of $321,000 for the quarter
ended  March 31, 1997 which was a 117% increase from the first quarter of 1996
earnings of $148,000.  The increase in net income for this subsidiary resulted
primarily  from  a  $302,000  (32%) increase in the Bank's net interest income
which  was  directly  related to a 23% higher level of earning assets and a 30
basis  point improvement in the net interest margin.  This increase was offset
somewhat  by  a reduction in other income due to a lower volume of activity in
the nondeposit financial services area of the Bank during the first quarter of
1997,  and  increases  in  other  operating  expenses.

     The  Company's  consumer  finance  subsidiary,  Freedom  Finance,  Inc.,
recorded  net  losses  for  both  the  first  quarter  of  1997  and  1996  of
approximately  $(2,000).    The higher level of outstanding loans for the 1997
period  as  compared  to  the  1996  period  which generated a $154,000 or 75%
increase  in net interest income was offset by (1) a higher provision for loan
losses  in  the  1997  quarter  due  to  the  level  of past dues and consumer
bankruptcies  as  compared  to  1996;  and  (2)  increases  in other operating
expenses  resulting  from  the higher number of offices and employees in 1997.

NET  INTEREST  INCOME

     Net  interest  income  is  the  difference between the interest earned on
assets and the interest paid for the liabilities used to support those assets.
It  is  the largest component of the Company's earnings and changes in it have
the greatest impact on net income.  Variations in the volume and mix of assets
and  liabilities  and  their  relative  sensitivity to interest rate movements
determine  changes in net interest income.  During the quarter ended March 31,
1997, the Company recorded consolidated net interest income of $1.7 million, a
38%  increase  from  the  net  interest income of $1.2 million for the quarter
ended  March 31, 1996.  The increase in this amount is directly related to (1)
the  increase in the loan and interest-bearing liability volume of the Bank of
29%  and 22%, respectively; and (2) the contribution of the Finance Company as
its  earning  assets increased 51% between the first quarter of 1996 and 1997.

     For  the  quarters  ended  March  31,  1997  and  1996,  the  Company's
consolidated  net  interest margin was 5.17% and 4.50%, respectively.  The net
interest  margin  is  calculated  as annualized net interest income divided by
year-to-date  average  earning  assets.  The increase is related to the Bank's
net interest margin which increased 30 basis points as a result of the decline
in  the average cost of liabilities and the increase in average yield on loans
and  investments  during  the  period, despite the lower prime rate during the
first  quarter  of 1997.  The remainder of the increase in net interest margin
is  related  to  increases  in the Finance Company's margin as this subsidiary
continues  to  grow  and  contribute  more  to  the  consolidated  results.

INTEREST  INCOME

     For  the  quarter  ended  March  31,  1997,  the Company's earning assets
averaged  $130.2  million and had an average yield of 9.53%.  This compares to
average  earning  assets  of  $107.2  million  for  the first quarter of 1996,
yielding  approximately  8.87%.    Thus,  the  significant  contributor to the
increase  in  interest  income  of  $697,000 or 29% between the quarters ended
March  31,  1996  and 1997 is the increase in volume of earning assets of 22%,
combined  with  the  66  basis  point  increase  in  average  yield.

     Consolidated  loans  averaged  approximately 80% of the Company's average
earning  assets.    The  majority of the Company's loans are tied to the prime
rate  (approximately  59% of the Bank's portfolio is at floating rates), which
averaged  8.27%  and  8.35%  for  the  quarters ended March 31, 1997 and 1996,
respectively.    During  the  first quarter of 1997, the Bank's loans averaged
$102  million,  yielding  an  average  of  9.00%,  compared  to $78.9 million,
yielding  an  average of 8.92% for the first quarter of 1996.  The increase in
the  average  yield on the Bank's loans despite the decrease in the prime rate
is  related  to  higher pricing on loans originated during 1996 and into 1997.
The  average  yield  of  the  Finance  Company  loans, which account for 3% of
consolidated  average  loans, contributed to the consolidated average yield on
loans  which  increased  to  10.42%  for the first quarter of 1997 compared to
9.96%  for  the  first  quarter  of  1996.  The higher level of average loans,
combined  with  the  increase  in  average  rate,  resulted  in an increase in
consolidated  interest  income  on  loans  of  $701,000  or  36%.

     Investment  securities  averaged  $18  million  or 14% of average earning
assets and yielded 6.33% during the first quarter of 1997, compared to average
securities  of  $22.3  million  yielding 5.65% for the quarter ended March 31,
1996.    The  increase  in  the  average  yield of the investment portfolio is
related to the timing, maturity distribution and types of securities purchased
during the latter half of 1996 and into 1997 as well as the maturities of some
investments  at lower than current market yields.  The 20% decrease in average
securities,  offset  somewhat by the increase in average rate, resulted in the
decrease  of  interest  income  on  securities  of  $38,000  or  12%.

INTEREST  EXPENSE

     The  Company's  interest expense for the quarter ended March 31, 1997 was
$1.4 million.  The increase of 20% from the comparable quarter in 1996 of $1.2
million  was related to the 22% increase in average volume of interest-bearing
liabilities,  offset  somewhat  by  the  decrease  in  average rate of 3 basis
points.    Interest-bearing  liabilities averaged $110.4 million for the first
quarter  of  1997  with  an  average  rate of 5.15%.  This compares to average
interest-bearing  liabilities  of  $90.3 million with an average rate of 5.18%
for  the  quarter  ended March 31, 1996.  The decrease in the average rate was
primarily  the  result  of  repricing  of maturing certificates of deposits to
lower  current market rates during the first quarter of 1997 and the reduction
of  the  average  rate paid on money market deposit accounts between the first
quarter  of  1996  and  1997.

PROVISION  FOR  LOAN  LOSSES

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

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

     Included  in  the  net  income  for the quarter ended March 31, 1997 is a
provision  for  loan  losses of $87,000 compared to a provision of $83,000 for
the  first  quarter  of  1996.  Net originations for the first quarter of 1997
were  $3.5  million  as  compared to $6.0 million for the same period of 1996,
however, net charge-offs of the Finance Company increased in the first quarter
of  1997  as compared to the prior year, thus the provision actually increased
5%.

     At  March  31,  1997, the consolidated allowance for loan losses was $1.6
million  or 1.48% of total gross loans.  This compares to an allowance of $1.2
million  or  1.43%  of  gross  loans at March 31, 1996.  For the quarter ended
March  31,  1997,  the  Company reported net charge-offs of $7,000, which is a
result  of  the  Finance  Company net charge-offs of $58,000 (7.46% of average
loans  of the Finance Company) combined with the Bank's net recoveries for the
first  quarter  of  1997  of  ($51,000).  This is compared to consolidated net
recoveries  of  previously  charged-off  loans  of ($6,000) for the comparable
quarter of 1996.  Loans on nonaccrual status at March 31, 1997 totaled $18,000
and  there were no nonaccrual loans at March 31, 1996.  Loans past due 90 days
and  greater  totaled  $98,000  or  0.09% of gross loans at March 31, 1997 and
$52,000 or .06% of gross loans at March 31, 1996.  Generally loans of the Bank
are  placed  on  nonaccrual status at the earlier of when they are ninety days
past  due  or  when the collection of interest becomes doubtful.  Loans of the
Finance  Company  are  not  classified as nonaccrual, but are charged-off when
they  become  150 days contractually past due or earlier if the loan is deemed
uncollectible.    The  allowance  for loan losses at March 31, 1997 represents
management's estimate of potential future losses in the loan portfolio at that
date.

OTHER  INCOME  AND  EXPENSES

     Other income, which is primarily related to service charges on customers'
deposit  accounts;  credit  card  interchange  fees;  merchant  discount fees;
commissions  on  nondeposit  investment  product  sales  and insurance product
sales; and mortgage origination fees, was $239,000 for the quarter ended March
31,  1997 compared to $243,000 for the first quarter of 1996, or a decrease of
1%.  The majority of the decrease is related to the lower volume of nondeposit
sale transactions generating commission income in the first quarter of 1997 as
compared  to  1996.

     For  the  quarter ended March 31, 1997, total overhead expenses were $1.3
million  which  is an increase of 17% over the amount incurred for the quarter
ended  March  31, 1996 of $1.1 million.  The most significant item included in
other  expenses is salaries, wages and benefits which amounted to $691,000 for
the quarter ended March 31, 1997 as compared to $585,000 for the quarter ended
March  31,  1996.    The increase of $107,000 or 18% is a result of (1) normal
annual  raises;  and  (2)  the  Finance  Company's  operations which increased
$88,000  or  64% related to the additional offices and staff (approximately 10
new  employees)  between  the  first  quarters  of 1996 and 1997.  The Finance
Company's  operations  accounted  for  82%  of  the  increase  in salaries and
benefits  for  the  first  quarter  of  1997  as  compared  to the prior year.

     The  19%  ($18,000)  increase  in  occupancy expenses and the 5% ($5,000)
increase  in  furniture,  fixtures,  and  equipment  ("FFE") between the first
quarters  of 1996 and 1997 are primarily related to the additional branches of
the  Finance  Company  in  the  first quarter of 1997 as compared to the prior
year.

     Included  in  the  line  item "other operating expenses", which increased
$51,000  or  16%  from  the  comparable  quarter  of 1996, are charges for OCC
assessments;  property  and  bond  insurance; Relay/Cirrus switch fees; credit
card  expenses; professional services; education and seminars; advertising and
public relations; and other branch and customer related expenses.  These items
are  related  directly  to  the  normal operations of the Bank and increase in
relation  to  the  increase in assets, the higher level of transaction volume,
and  the  larger number of customer accounts.  Also included in this line item
for  activity  of  the Finance Company are charges for credit reports, license
fees,  acquisition  premium  amortization,  and  office  support.  These items
increase  in relation to the volume of activity, number of branches and number
of  customer  accounts.

INCOME  TAXES

     For  the  quarter  ended March 31, 1997, the Company reported $199,000 in
income  tax  expense,  or  an  effective tax rate of 37%.  This is compared to
income  tax  expense of $102,000 for the same quarter of the prior year, or an
effective  tax  rate of 38%.  The reduction in the effective rate is primarily
related  to the increase in tax-free municipal investments in 1997 as compared
to  the  prior  year.


LIQUIDITY

     Liquidity  management  involves meeting the cash flow requirements of the
Company.  The Company must maintain an adequate liquidity position in order to
respond  to  the  short-term  demand  for funds caused by the withdrawals from
deposit  accounts,  maturities  of repurchase agreements, extensions of credit
and  for  the payment of operating expenses.  Maintaining an adequate level of
liquidity  is accomplished through a combination of liquid assets, those which
can  easily be converted into cash, and access to additional sources of funds.
The Company's primary liquid assets are cash and due from banks, federal funds
sold,  unpledged  investment  securities  available for sale, other short-term
investments  and  maturing  loans.    The  Company's  primary    liquid assets
accounted  for  16%  and  20%  of  average  assets at March 31, 1997 and 1996,
respectively.   In management's opinion, the Company maintains adequate levels
of  liquidity  by  retaining  liquid  assets  and  assets  which can easily be
converted  into  cash  and  by maintaining access to various sources of funds.
The primary sources of funds available through the Bank include borrowing on a
short-term  basis  from the Federal Home Loan Bank and Federal Reserve System,
purchasing  federal  funds  from  other financial institutions, and increasing
deposits  by  raising  rates  paid.

     The Company's core deposits consist of consumer non-jumbo (i.e. less than
$100,000)  time  deposits,  and  consumer and commercial savings accounts, NOW
accounts,  money  market  accounts, and checking accounts.  Although such core
deposits are becoming increasingly more costly and interest sensitive for both
the  Company  and  the  industry  as  a  whole, such core deposits continue to
provide  the  Company  with a large and stable source of funds.  Core deposits
averaged  69%  and 67% of earning assets during the first three months of 1997
and  1996,  respectively.    The  Company  closely  monitors  its  reliance on
certificates of deposits greater than $100,000, which are generally considered
less stable and more interest rate sensitive than core deposits.  Certificates
of deposit in excess of $100,000, which represented 21% and 22%, respectively,
of  total deposits at March 31, 1997 and 1996, are held primarily by customers
in  the Company's service area who have dealt with the Company for an extended
period  of  time.    The  Company  has  no  brokered  deposits.

     Summit  Financial  Corporation  ("Summit  Financial"), the parent holding
company,  has limited liquidity needs.  Summit Financial requires liquidity to
pay limited operating expenses, to service its debt, and to provide funding to
its  consumer  finance subsidiary, Freedom Finance.  Summit Financial has $1.8
million  in available liquidity remaining from its initial public offering and
the  retention of earnings.  All of this liquidity was advanced to the Finance
Company  to  fund  its  operations  as of March 31, 1997.  In addition, Summit
Financial  has available lines of credit totaling $3 million with unaffiliated
financial  institutions,  of  which  all  was  available at March 31, 1997.  A
further  source of liquidity for Summit Financial includes management fees and
debt  service  which  are  paid  by  its  subsidiary  on  a  monthly  basis.

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

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

CAPITAL  RESOURCES

     To  date,  the  capital  needs  of  the Company have been met through the
retention  of  net  income  and  from  the proceeds of its initial offering of
common  stock.    The  Company believes that the rate of asset growth will not
negatively  impact the capital base.  Total equity at March 31, 1997 was $11.9
million.    The  Company  has  no  commitments  or  immediate  plans  for  any
significant  capital  expenditures outside the normal course of business.  The
Company's management does not know of any trends, events or uncertainties that
may  result  in  the  Company's  capital  resources  materially  increasing or
decreasing.

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

     Quantitative  measures  established  by  regulation  to  ensure  capital
adequacy  require  the  Company  and  the Bank to maintain minimum amounts and
ratios  (set forth in the table below) of total and Tier 1 capital (as defined
in  the  regulation) to risk-weighted assets (as defined) and to total assets.
Management  believes, as of March 31, 1997, that the Company and the Bank meet
all  capital  adequacy  requirements  to which they are subject.  At March 31,
1997  and  1996,  the  Company  and  the  Bank  are  both categorized as "well
capitalized"under  the  regulatory framework for prompt corrective action.  To
be  categorized  as "well capitalized", the Company and the Bank must maintain
minimum total risk-based, Tier 1 risk-based, and Tier 1 leverage ratios as set
forth  in  the  table  below.   There are no current conditions or events that
management  believes  would  change  the  Company's  or  the  Bank's category.

     The  following table presents the Company's and the Bank's actual capital
amounts  (dollars  in  thousands)  and ratios at March 31, 1997 as well as the
minimum  calculated  amounts  for  each  regulatory  defined  category.

<TABLE>
<CAPTION>



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

Total Qualifying
Capital to
Risk-Weighted
Assets:
     Company       $13,418  12.00%  $      8,943   8.00%  $      11,179  10.00%
     Bank          $11,398  10.45%  $      8,728   8.00%  $      10,910  10.00%
Tier 1 Capital to
Risk-Weighted
Assets:
     Company       $12,021  10.75%  $      4,471   4.00%  $       6,707   6.00%
     Bank          $10,034   9.20%  $      4,364   4.00%  $       6,546   6.00%
Tier 1 Capital to
Average Assets:
     Company       $12,021   8.79%  $      5,470   4.00%  $       6,838   5.00%
     Bank          $10,034   7.48%  $      5,367   4.00%  $       6,709   5.00%

</TABLE>



EFFECT  OF  INFLATION  AND  CHANGING  PRICES

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

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

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


ACCOUNTING,  REPORTING  AND  REGULATORY  MATTERS

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

     In  February  1997,  the  FASB issued SFAS No. 128, "Earnings per Share",
which  is  effective for both interim and annual periods ending after December
15,  1997.   This statement supersedes Accounting Principles Board Opinion No.
15,  "Earnings  per  Share".    The  purpose  of this statement is to simplify
current  reporting  and  make  U.S.  reporting  comparable  to  international
standards.   The statement requires dual presentation of basic and diluted EPS
by  entities  with  complex  capital structures (as defined by the statement).
The  Company  anticipates  that  adoption  of  this  standard  will not have a
material  effect  on  EPS.
     Also,  in  February  1997,  the  FASB issued SFAS No. 129, "Disclosure of
Information  about  Capital  Structure",  which  is  effective  for  financial
statements for periods ending after December 31, 1997.  This statement applies
to  both  public and nonpublic entities.  The new statement requires no change
for  entities  subject  to the existing requirements.  The Company anticipates
that adoption of this standard will not have a material effect on the Company.


<PAGE>
                         SUMMIT FINANCIAL CORPORATION

                          PART II. OTHER INFORMATION



Item  1.          Legal  Proceedings.

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

Item  2.          Changes  in  Securities.

          None.

Item  3.          Defaults  Upon  Senior  Securities.

          None.

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

          At  the  Annual Meeting of Shareholders held April 16, 1997 pursuant
to  the  Notice  of  Annual  Meeting of Shareholders and Proxy Statement dated
March  12,  1997,  the  following  matters  were  voted  on:

          (1)  election  of  4  nominees  for  directors  to terms of 3 years:
1,074,086  shares  (99.9%  of  the  votes  cast) voted FOR the election of the
directors;  and
          (2)  the ratification of the appointment of KPMG Peat Marwick LLP as
independent accountants for the Company: 1,070,010 shares (99.6% of the shares
represented  at the meeting) voted FOR ratification; 761 shares AGAINST; 3,435
shares  ABSTAIN.

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

Item  5.          Other  Information.

          None.

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

          (a)          Exhibits:

               27.1  Financial  Data  Schedule

          (b)          Reports  on  Form  8-K:

               None.


<PAGE>
                         SUMMIT FINANCIAL CORPORATION

                                  SIGNATURES



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

                                                  SUMMIT FINANCIAL CORPORATION


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


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