FORM  10-Q

           SECURITIES  AND  EXCHANGE  COMMISSION
                 Washington,  D.C.  20549

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

     For  The  Quarterly  Period  Ended  September  30,  1999

                 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  October  20, 1999, 3,055,704 shares of $1.00 par value common stock were
outstanding.

<PAGE>

<TABLE>
<CAPTION>

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



                                                     September 30,    December 31,
                                                         1999             1998
                                                    ---------------  --------------
<S>                                                 <C>              <C>
                                                       (Unaudited)
ASSETS
Cash and due from banks                             $        4,774   $       5,377
Interest-bearing bank balances                               3,434             623
Federal funds sold                                           3,030             400
Investments available for sale                              24,961          27,102
Loans, net of unearned income and net of
 allowance for loan losses of $2,065 and $1,827            142,187         128,842
Premises and equipment, net                                  2,984           3,101
Accrued interest receivable                                  1,170           1,132
Other assets                                                 4,271           3,908
                                                    ---------------  --------------
                                                    $      186,811   $     170,485
                                                    ===============  ==============
  LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits:
 Noninterest-bearing demand                         $       15,747   $      20,877
 Interest-bearing demand                                    10,499           8,541
 Savings and money market                                   63,412          50,047
 Time deposits, $100,000 and over                           19,838          17,801
 Other time deposits                                        48,636          42,977
                                                    ---------------  --------------
                                                           158,132         140,243
Federal funds purchased and repurchase agreements                -           3,566
Other short-term borrowings                                    500             820
FHLB advances                                                9,000           8,000
Accrued interest payable                                       954           1,052
Other liabilities                                            1,359           1,130
                                                    ---------------  --------------
                                                           169,945         154,811
                                                    ---------------  --------------
Shareholders' equity:
 Common stock, $1.00 par value; 20,000,000
  shares authorized; issued and
  outstanding 3,055,704 and 3,038,706 shares                 3,056           3,039
 Additional paid-in capital                                 12,779          12,726
 Retained earnings                                           1,766               -
 Accumulated other comprehensive (loss)
  income, net of tax                                          (407)            313
 Nonvested resticted stock                                    (328)           (404)
                                                    ---------------  --------------
     Total shareholders' equity                             16,866          15,674
                                                    ---------------  --------------
                                                    $      186,811   $     170,485
                                                    ===============  ==============
<FN>

SEE  NOTES  TO  CONSOLIDATED  FINANCIAL  STATEMENTS
</TABLE>

<PAGE>

<TABLE>
<CAPTION>

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

                                             For the Three Months Ended   For the Nine Months Ended
                                                    September 30,               September 30,
                                                  1999         1998         1999         1998
                                               -----------  -----------  -----------  -----------
<S>                                            <C>          <C>          <C>          <C>
Interest Income:
 Loans                                         $    3,531   $    3,102   $   10,014   $    9,134
 Taxable investment securities                        231          270          700          906
 Nontaxable investment securities                     124          108          370          289
 Federal funds sold                                    54          161           66          351
 Other                                                 51           50           96          148
                                               -----------  -----------  -----------  -----------
                                                    3,991        3,691       11,246       10,828
                                               -----------  -----------  -----------  -----------
Interest Expense:
 Deposits                                           1,607        1,632        4,432        4,906
 Other                                                130          115          409          259
                                               -----------  -----------  -----------  -----------
                                                    1,737        1,747        4,841        5,165
                                               -----------  -----------  -----------  -----------
     Net interest income                            2,254        1,944        6,405        5,663
Provision for loan losses                            (108)         (40)        (318)        (141)
                                               -----------  -----------  -----------  -----------
     Net interest income after
      provision for loan losses                     2,146        1,904        6,087        5,522
                                               -----------  -----------  -----------  -----------
Noninterest Income:
 Service charges and fees on deposit accounts          52           62          158          160
 Credit card service fees and income                   84           70          243          223
 Gain on sale of securities                             -            -           22            1
 Insurance commission fee income                       64           58          186          239
 Other income                                         169          149          544          483
                                               -----------  -----------  -----------  -----------
                                                      369          339        1,153        1,106
                                               -----------  -----------  -----------  -----------
Noninterest Expenses:
 Salaries, wages and benefits                         879          773        2,573        2,417
 Occupancy                                            150          119          437          339
 Furniture and equipment                              176          140          487          414
 Other expenses                                       456          427        1,277        1,299
                                               -----------  -----------  -----------  -----------
                                                    1,661        1,459        4,774        4,469
                                               -----------  -----------  -----------  -----------
Income before income taxes                            854          784        2,466        2,159
Income taxes                                         (237)        (284)        (700)        (789)
                                               -----------  -----------  -----------  -----------
Net income                                     $      617   $      500   $    1,766   $    1,370
                                               ===========  ===========  ===========  ===========

Net income per common share:
   Basic                                       $      .20   $      .16   $      .58   $      .45
   Diluted                                     $      .17   $      .14   $      .50   $      .38
Average common shares outstanding:
   Basic                                        3,051,000    3,032,000    3,048,000    3,029,000
   Diluted                                      3,545,000    3,607,000    3,563,000    3,587,000

<FN>

SEE  NOTES  TO  CONSOLIDATED  FINANCIAL  STATEMENTS
</TABLE>

<PAGE>

<TABLE>
<CAPTION>

                                   SUMMIT FINANCIAL CORPORATION AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY AND COMPREHENSIVE INCOME
                               FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1999 AND 1998
                                               (Dollars in Thousands)
                                                    (Unaudited)

                                                                                         Accumulated
                                                                                            other
                                                               Additional               comprehensive    Nonvested
                                                  Common        paid-in       Retained      (loss)       restricted
                                                  stock         capital       earnings    income, net      stock
                                               ------------  --------------  ----------  -------------  -----------
<S>                                            <C>           <C>             <C>         <C>            <C>
Balance at December 31, 1997                   $      3,022  $       10,762           -  $         90        ($505)
Net income for the nine months
 ended September 30, 1998                                 -               -       1,370             -            -
Other comprehensive income:
Unrealized holding gains on securities
  arising during the period, net of
  tax of $105                                             -               -           -           208            -

Comprehensive income                                      -               -           -             -            -

Employee stock options exercised                         11              41           -             -            -
Amortization of deferred
 compensation on restricted stock                         -               -           -             -           76
                                               ------------  --------------  ----------  -------------  -----------
Balance at September 30, 1998                  $      3,033  $       10,803  $    1,370  $        298        ($429)
                                               ============  ==============  ==========  =============  ===========


Balance at December 31, 1998                   $      3,039  $       12,726           -  $        313        ($404)
Net income for the nine months
 ended September 30, 1999                                 -               -       1,766             -            -
Other comprehensive income:
Unrealized gain on securities:
 Unrealized holding losses arising during
  the period, net of tax of ($441)                        -               -           -          (704)           -
 Less: reclassification adjustment for gains
  included in net income, net of tax of $6                -               -           -           (16)           -
                                                                                         -------------
 Other comprehensive loss                                 -               -           -          (720)           -
                                                                                         -------------
Comprehensive income                                      -               -           -             -            -

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




                                                    Total
                                                shareholders'
                                                   equity
                                               ---------------
<S>                                            <C>
Balance at December 31, 1997                   $       13,369
Net income for the nine months
 ended September 30, 1998                               1,370
Other comprehensive income:
Unrealized holding gains on securities
  arising during the period, net of
  tax of $105                                             208
                                               ---------------
Comprehensive income                                    1,578
                                               ---------------
Employee stock options exercised                           52
Amortization of deferred
 compensation on restricted stock                          76
                                               ---------------
Balance at September 30, 1998                  $       15,075
                                               ===============


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

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

<FN>

SEE  NOTES  TO  CONSOLIDATED  FINANCIAL  STATEMENTS
</TABLE>

<PAGE>

<TABLE>
<CAPTION>

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

                                                      For  the  Nine  Months  Ended
                                                                  September 30,
                                                                  -------------
                                                                 1999       1998
                                                               ---------  --------
<S>                                                            <C>        <C>
Cash flows from operating activities:
 Net income                                                    $  1,766   $ 1,370
Adjustments to reconcile net income to net cash
 provided by operating activities:
    Provision for loan losses                                       318       141
    Depreciation and amortization                                   387       325
    Gain on sale of equipment and vehicles                          (26)        -
    Gain on sale securities available for sale                      (22)       (1)
    Net amortization of net premium on investments                   62        26
    Amortization of deferred compensation on restricted stock        76        76
    (Increase) decrease in other assets                            (255)      143
    Increase (decrease) in other liabilities                        572      (107)
                                                               ---------  --------
Net cash provided by operating activities                         2,878     1,973
                                                               ---------  --------

Cash flows from investing activities:
  Purchases of securities available for sale                     (3,889)   (9,524)
  Proceeds from maturities of securities available for sale       3,808     8,817
  Proceeds from sales of securities available for sale            1,021       951
  Purchases of investments in FHLB and other stock                 (146)      (84)
  Purchases of company-owned life insurance                           -    (1,725)
  Net increase in loans                                         (13,662)   (2,644)
  Purchases of premises and equipment                              (294)     (801)
  Proceeds from sale of equipment and vehicles                       49         -
                                                               ---------  --------
Net cash used in investing activities                           (13,113)   (5,010)
                                                               ---------  --------

Cash flows from financing activities:
  Net increase in deposit accounts                               17,889     1,688
  Net decrease in federal funds purchased                        (3,566)       33
  Repayment of other short-term borrowings                         (320)        -
  Proceeds from FHLB advances                                    10,550     6,500
  Repayments of FHLB advances                                    (9,550)   (2,500)
  Proceeds from employee stock options exercised                     70        52
                                                               ---------  --------
Net cash provided by financing activities                        15,073     5,773
                                                               ---------  --------
Net increase in cash and cash equivalents                         4,838     2,736
Cash and cash equivalents, beginning of period                    6,400     9,361
                                                               ---------  --------
Cash and cash equivalents, end of period                       $ 11,238   $12,097
                                                               =========  ========

SUPPLEMENTAL INFORMATION:
Cash paid during the period for interest                       $  4,938   $ 5,497
Cash paid during the period for income taxes                   $    800   $   595
Change in fair market value of investment securities
 available for sale, net of income taxes                          ($720)  $   208

<FN>

SEE  NOTES  TO  CONSOLIDATED  FINANCIAL  STATEMENTS
</TABLE>

<PAGE>

                          SUMMIT FINANCIAL CORPORATION
     CONDENSED  NOTES  TO  CONSOLIDATED  FINANCIAL  STATEMENTS
                               SEPTEMBER 30, 1999

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

     The  accompanying consolidated financial statements include the accounts of
the  Company  and  its  subsidiaries.  All significant intercompany accounts and
transactions  have been eliminated in consolidation.  The unaudited consolidated
financial  statements of the Company at September 30, 1999 and for the three and
nine month periods ended September 30, 1999 and 1998 were prepared in accordance
with  the  instructions  for  Form  10-Q.  In  the  opinion  of  management, all
adjustments  (consisting  only  of items of a normal recurring nature) necessary
for a fair presentation of the financial position at September 30, 1999, and the
results  of  operations  and cash flows for the periods ended September 30, 1999
and  1998  have  been  included.  The results for the three or nine month period
ended  September 30, 1999 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, 1998 included in the Company's
1998  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  $11,238,000 and
$12,097,000  at  September  30,  1999  and  1998,  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 three and the nine months
ended  September  30, 1999 and 1998.  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  and  the  1998  two-for-one stock split as of the earliest period
presented.  (Dollars,  except  per  share  data,  in  thousands).

<TABLE>
<CAPTION>

                                         For the Three Months Ended September 30,
                                        1999        1999        1998        1998
                                     ----------  ----------  ----------  ----------
                                        BASIC       DILUTED      BASIC      DILUTED
                                      ----------  ----------  ----------  ----------
<S>                                  <C>         <C>         <C>         <C>
Net Income                           $      617  $      617  $      500  $      500
                                     ----------  ----------  ----------  ----------
Weighted average shares
 outstanding                          3,051,590   3,051,590   3,032,333   3,032,333
Effective of Dilutive Securities:
 Stock options and restricted stock           -     493,009           -     574,106
                                     ----------  ----------  ----------  ----------
                                      3,051,590   3,544,599   3,032,333   3,606,439
                                     ----------  ----------  ----------  ----------
Per-share amount                     $     0.20  $     0.17  $     0.16  $     0.14
                                     ==========  ==========  ==========  ==========
</TABLE>


<TABLE>
<CAPTION>

                                          For the Nine Months Ended September 30,
                                        1999        1999        1998        1998
                                     ----------  ----------  ----------  ----------
                                        BASIC      DILUTED      BASIC      DILUTED
                                      ---------  ----------  ----------  ----------
<S>                                  <C>         <C>         <C>         <C>
Net Income                           $    1,766  $    1,766  $    1,370  $    1,370
                                     ----------  ----------  ----------  ----------
Weighted average shares
 outstanding                          3,048,020   3,048,020   3,028,510   3,028,510
Effective of Dilutive Securities:
 Stock options and restricted stock           -     515,128           -     558,009
                                     ----------  ----------  ----------  ----------
                                      3,048,020   3,563,148   3,028,510   3,586,519
                                     ----------  ----------  ----------  ----------
Per-share amount                     $     0.58  $     0.50  $     0.45  $     0.38
                                     ==========  ==========  ==========  ==========
</TABLE>

<PAGE>

NOTE  4  -  SEGMENT  INFORMATION:
     The  Company reports information about its operating segments in accordance
with  SFAS  131,  "Disclosures  about  Segments  of  an  Enterprise  and Related
Information".  Summit  Financial  Corporation  is the parent holding company for
Summit National Bank ("Bank"), a nationally chartered bank, and Freedom Finance,
Inc.  ("Finance"),  a  consumer finance company.  The Company considers the Bank
and the Finance Company separate business segments which are evaluated regularly
by  the chief operating decision maker in deciding how to allocate resources and
assess  performance.

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

<TABLE>
<CAPTION>

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


<TABLE>
<CAPTION>

                                     For  the  quarter  ended                At and for the nine months ended
                                       September 30,  1998                          September 30, 1998
                             Bank      Finance    Corporate     TOTAL      Bank     Finance    Corporate    TOTAL
                           ---------  ---------  -----------  ---------  --------  ---------  -----------  --------
<S>                        <C>        <C>        <C>          <C>        <C>       <C>        <C>          <C>
Interest income            $  3,335   $    373         ($17)  $  3,691   $ 9,714   $  1,168         ($54)  $10,828
Interest expense             (1,729)       (72)          54     (1,747)   (5,109)      (216)         160    (5,165)
                           ---------  ---------  -----------  ---------  --------  ---------  -----------  --------
Net interest income           1,606        301           37      1,944     4,605        952          106     5,663
Provision for loan losses       (10)       (30)           -        (40)      (70)       (71)           -      (141)
Other income                    281         70          (12)       339       920        222          (36)    1,106
Other expenses               (1,075)      (382)          (2)    (1,459)   (3,299)    (1,156)         (14)   (4,469)
                           ---------  ---------  -----------  ---------  --------  ---------  -----------  --------
Income before taxes             802        (41)          23        784     2,156        (53)          56     2,159
Income taxes                   (291)        13           (6)      (284)     (787)        15          (17)     (789)
                           ---------  ---------  -----------  ---------  --------  ---------  -----------  --------
Net income                 $    511       ($28)  $       17   $    500   $ 1,369       ($38)  $       39   $ 1,370
                           =========  =========  ===========  =========  ========  =========  ===========  ========
Net loans                                                              $118,010   $  2,295        ($775)  $119,530
                                                                       =========  =========  ===========  =========
Total assets                                                           $165,273   $  3,289        ($860)  $167,702
                                                                       =========  =========  ===========  =========
</TABLE>


<PAGE>

                          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, 1998.  Results of operations for the nine month period ended
September  30, 1999 are not necessarily indicative of results to be attained for
any  other  period.

FORWARD-LOOKING  STATEMENTS
     Statements  included  in this report which are not historical in nature are
intended  to  be, and are hereby identified as, "forward-looking statements" for
purposes  of  the safe harbor provided by Section 21E of the Securities Exchange
Act  of  1934, as amended (the "Act"). In addition, certain statements in future
filings  by  the  Company  with the Securities and Exchange Commission, in press
releases  and in oral and written statements made by or with the approval of the
Company  which  are not statements of historical fact constitute forward-looking
statements  within  the  meaning  of  the Act. The Company cautions readers that
forward-looking  statements, including without limitation, those relating to the
Company's  future  business  prospects,  plans,  objectives,  future  economic
performance,  revenues,  working  capital,  liquidity,  capital  needs, interest
costs,  income  or loss, income or loss per share, dividends and other financial
items  are  subject  to  certain risks and uncertainties that could cause actual
results  to  differ  materially  from  those  indicated  in  the forward-looking
statements due to several important factors herein identified, among others, and
other  risks  and  factors identified from time to time in the Company's reports
filed  with  the  Securities  and  Exchange  Commission.

     The  risks  and  uncertainties that may affect the operations, performance,
development  and  results of the Company's business include, but are not limited
to,  the  following:  projections  regarding  the estimated annualized financial
impact  from  the  sale  of  the  credit  cards; risks from changes in economic,
monetary  policy  and industry conditions; changes in interest rates; inflation;
risks  inherent  in  making  loans  including  repayment  risks  and  value  of
collateral;  fluctuations  in  consumer  spending;  the demand for the Company's
products  and  services; dependence on senior management; technological changes;
ability  to increase market share and control expenses; acquisitions; changes in
accounting  policies  and  practices;  costs and effects of litigation; recently
enacted  or  proposed  legislation;  and  year  2000  readiness.

     Such  forward-looking  statements  speak  only as of the date on which such
statements  are  made,  and  the  Company undertakes no obligation to update any
forward-looking  statement  to reflect events or circumstances after the date on
which  such statement is made to reflect the occurrence of unanticipated events.


<PAGE>

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

     During  the  quarter  ended  September  30,  1999, the Company's net income
totaled  $617,000  or $.17 per diluted share.  This is compared to net income of
$500,000  or  $.14 per diluted share for the same quarterly period of 1998 or an
increase  of  23.5%.  For the first nine months of 1999 the Company reported net
income  of $1,766,000 or $.50 per diluted share, an improvement of approximately
$396,000  (28.9%)  from  the  net  income  for  the first nine months of 1998 of
$1,370,000  or  $.38  per  diluted  share.

BALANCE  SHEET  ACTIVITY
     Total  assets  increased  $16.3  million  or 9.6% from December 31, 1998 to
September  30,  1999.  Deposits  increased  approximately $17.9 million or 12.8%
during  the  period.  A  majority  of  the increase in deposits was in the money
market  account  category  which  accounted  for  $13.4 million of the increase.
The  increase in deposits funded gross loan growth of $13.6 million (10.4%), the
$2.8  million (451%) increase in interest-bearing deposits, and the $2.6 million
(657%)  increase  in  federal  funds  sold  during  the  same  period.

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

     At  September 30, 1999, the consolidated allowance for loan losses was $2.1
million  or  1.43%  of  total loans net of unearned income.  This compares to an
allowance  of  $1.8  million  or  1.47% of total loans net of unearned income at
September  30,  1998.  For  the  quarter  ended  September 30, 1999, the Company
reported consolidated net charge-offs of $93,000 or 0.07% of average loans on an
annualized  basis.  This  is compared to consolidated net charge-offs of $52,000
or  0.17%  (annualized)  of  average  loans  for the comparable quarter of 1998.
There  were  no loans on nonaccrual status at either September 30, 1999 or 1998.
Loans  past  due 90 days and greater totaled $267,000 or 0.18% of gross loans at
September  30,  1999 and $365,000 or 0.30% of gross loans at September 30, 1998.
Generally  loans  of  the Bank are placed on nonaccrual status at the earlier of
when  they  are  90  days  past  due  or when the collection of interest becomes
doubtful.  Loans  of  the  Finance Company are not classified as nonaccrual, but
are  charged-off  when they become 150 days contractually past due or earlier if
the  loan  is  deemed uncollectible.  The allowance for loan losses at September
30,  1999  represents  management's  estimate of probable losses inherent in the
loan  portfolio  at  that  date.



<PAGE>
EARNINGS  REVIEW  FOR  THE  QUARTERS  ENDED  SEPTEMBER  30,  1999  AND  1998

GENERAL
     The  Company  reported  consolidated  net  income  for  the  quarter  ended
September  30,  1999  of  $617,000,  compared  to net income of $500,000 for the
quarter ended September 30, 1998, or an improvement of approximately $117,000 or
23.5%.  The  increase  in consolidated earnings for the 1999 period is primarily
attributable  to  the  $310,000  or 15.9% increase in the Company's net interest
income  related  to  the  higher level of average earning assets which increased
8.9% in 1999 as compared to the prior year.  Also contributing to the higher net
interest  income  is  the reduction in the Company's average cost of liabilities
which  more  than  offset  the  higher level of interest-bearing liabilities and
resulted  in lower interest expense.  Also contributing to the higher net income
was  the 8.7% increase in other income and the reduction in the effective income
tax  rate  due  to  a higher level of tax-free municipal securities.  Offsetting
these  items  is the increase in other operating expenses of approximately 13.8%
and  the  higher  provision  for  loan  losses  of  $68,000  or  170%.

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 September 30, 1999,
the  Company  recorded consolidated net interest income of $2.3 million, a 15.9%
increase  from  the  net  interest  income of $1.9 million for the quarter ended
September  30,  1998.  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  8.9%  and 10.7% respectively, combined with the 31 basis point
increase  in  net  interest  margin  for  the  Company.

     For  the  quarters  ended  September  30,  1999  and  1998,  the  Company's
consolidated  net  interest  margin  was 5.23% and 4.92%, 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 lower average cost of liabilities in 1999 as
higher priced certificates of deposit matured and were replaced with deposits of
lower current market rates.  Also contributing to the lower cost of funds is the
shift  of  the  deposit  portfolio to a higher percentage of floating rate money
market  accounts which averaged 38.5% of total deposits for the third quarter of
1999.

INTEREST  INCOME
     For  the  quarter  ended  September  30, 1999, the Company's earning assets
averaged  $175.8  million  and  had an average yield of 9.15%.  This compares to
average earning assets of $161.4 million for the third quarter of 1998, yielding
9.21%.  Thus,  the 8.9% increase in volume of earning assets, offset somewhat by
the  6  basis point reduction in average yield, accounts for the $300,000 (8.1%)
increase  in  interest  income  between  the  third  quarter  of  1998 and 1999.

     Consolidated  loans  averaged  approximately  81%  of the Company's average
earning assets for the third quarter of 1999 compared to 74% for the prior year.
The  majority  of  the Company's loans are tied to the prime rate (approximately
64%  of  the Bank's portfolio is at floating rates at September 30, 1999), which
averaged  8.10%  and  8.50%  for  the quarters ended September 30, 1999 and 1998
respectively.  During  the  third  quarter  of 1999, consolidated loans averaged
$142.6  million,  yielding an average rate of 9.82%, compared to $119.9 million,
yielding  an average rate of 10.26% for the third quarter of 1998.  The 44 basis
point  decrease  in the average yield on loans is primarily related to the lower
prime  lending rate which decreased 40 basis points between the third quarter of
1998 and 1999.  The higher level of average loans (which increased 18.9%) offset
the  decrease  in  average  rate  and  resulted  in  an increase in consolidated
interest  income  on  loans  of  $429,000  or  13.8%.

     Investment  securities  averaged  $25.3 million or 14.4% of average earning
assets  and  yielded  6.56%  (tax  equivalent basis) during the third quarter of
1999,  compared  to  average  securities  of  $26.8  million yielding 6.42% (tax
equivalent  basis)  for  the  quarter ended September 30, 1998.  The increase in
average  yield  of  the investment portfolio is related to the portfolio mix and
the percentage of higher yielding tax-free municipal securities in the portfolio
in  1999 as compared to the prior year.  This increase partially offset the 5.5%
reduction  in average securities and resulted in the decrease of interest income
on  securities  of  $23,000.

INTEREST  EXPENSE
     The  Company's  interest  expense for both the quarters ended September 30,
1999 and 1998 was $1.7 million.  The 52 basis point reduction in average rate on
liabilities  was  offset  by  the  10.7%  increase in volume of interest-bearing
liabilities  resulting  in  a  $10,000  reduction  in  interest  expense.
Interest-bearing  liabilities  averaged  $149.2 million for the third quarter of
1999  with  an average rate of 4.62%.  This compares to average interest-bearing
liabilities  of  $134.8  million  with  an average rate of 5.14% for the quarter
ended  September  30,  1998.  The decrease in the average rate on liabilities is
the  result  of  maturities  of  certificates  of deposit that were subsequently
renewed  at  lower  current  market  rates and the shift of deposits to a larger
percentage of lower cost, floating rate deposits which were repriced immediately
as the prime rate dropped in the fourth quarter of 1998.  At September 30, 1999,
money  market  deposits  accounted for 40% of total deposits compared to 34% for
the  prior  year.

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

     Included  in  the  net income for the quarter ended September 30, 1999 is a
provision for loan losses of $108,000 compared to a provision of $40,000 for the
third  quarter  of 1998.  The higher net loan originations for the third quarter
of  1999  as  compared  to  the  same period of 1998, led to the increase in the
provision  for  loan  losses  in  the  current  year.

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  $369,000  for  the quarter ended
September  30,  1999 compared to $340,000 for the third quarter of September 30,
1998,  or  an increase of 8.7%.  The increase was related to the higher level of
activity  and  transactions  of  the  Bank generating other income in the normal
course  of  business.

     For  the  quarter  ended  September  30,  1999,  total noninterest overhead
expenses  were  $1.7  million which is an increase of $202,000 or 13.8% over the
amount  incurred  for the quarter ended September 30, 1998 of $1.5 million.  The
most significant item included in other expenses is salaries, wages and benefits
which  amounted to $879,000 for the quarter ended September 30, 1999 as compared
to  $773,000 for the quarter ended September 30, 1998.  The increase of $106,000
or  13.7% is a result of normal annual raises, and additional staff added at the
new  branch  of  the  Bank  in  the  fourth  quarter  of  1998.

     The  25.9% ($31,000) increase in occupancy and the 25.8% ($36,000) increase
in furniture, fixtures, and equipment ("FFE") between the third quarters of 1999
and  1998  was  directly  related to normal expenses, including rent, utilities,
depreciation, property taxes, maintenance and insurance, associated with the new
Bank  branch  facility  which  opened  in  the  fourth  quarter  of  1998.

     Included in the line item "other expenses", which increased $29,000 or 6.9%
from  the  comparable quarter of 1998, 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 was related to the higher
level  of  activity  in  the  normal  course  of  business  for  the  Bank.

INCOME  TAXES
     For  the quarter ended September 30, 1999, the Company reported $237,000 in
income  tax  expense,  or  an  effective tax rate of 27.8%.  This is compared to
income  tax  expense  of  $285,000 for the same quarter of the prior year, or an
effective  tax  rate  of 36.3%. The reduction in the effective rate is primarily
related  to  the  higher  level  of  tax-free  municipal  investments  in  1999.


EARNINGS  REVIEW  FOR  THE  NINE  MONTHS  ENDED  SEPTEMBER  30,  1999  AND  1998

GENERAL
     The  Company  reported  consolidated  net  income for the nine months ended
September  30,  1999 of $1,766,000, compared to net income of $1,370,000 for the
nine  months  ended  September  30,  1998,  or  an  improvement of approximately
$396,000 or 28.9%.  The increase in consolidated earnings for the 1999 period is
primarily  attributable  to  the $742,000 or 13.1% increase in the Company's net
interest  income  related  to  the  higher level of average earning assets which
increased  5.9% in 1999 as compared to the prior year.  Also contributing to the
higher  net  interest  income  is the reduction in the Company's average cost of
liabilities  which  more  than  offset  the  higher  level  of  interest-bearing
liabilities  and  resulted  in  a  6.3%  reduction  in  interest  expense.  Also
contributing  to the higher net income was the 4.3% increase in other income and
the reduction in the effective income tax rate due to a higher level of tax-free
municipal  securities. Offsetting these items is the increase in other operating
expenses  of  approximately  6.8%  and  the  higher provision for loan losses of
$177,000  or  126%.

NET  INTEREST  INCOME
     Net  interest  income,  the  difference  between  the  interest  earned and
interest paid, is the largest component of the Company's earnings and changes in
it  have the greatest impact on net income.  Variations in the volume and mix of
assets and liabilities and their relative sensitivity to interest rate movements
determine  changes  in  net  interest  income.  During  the  nine  months  ended
September  30,  1999,  the  Company recorded consolidated net interest income of
$6.4  million, a 13.1% increase from the net interest income of $5.7 million for
the  nine  months  ended  September  30,  1998.  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 5.9% and 5.8% respectively,
combined  with  the  36  basis point increase in the net interest margin for the
Company.

     For  the  nine  months  ended  September  30,  1999 and 1998, the Company's
consolidated  net  interest  margin  was 5.29% and 4.93%, 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 lower average cost liabilities in 1999 as
higher priced certificates of deposit matured and were replaced with deposits of
lower current market rates.  Also contributing to the lower cost of funds is the
shift  of  the  deposit  portfolio to a higher percentage of floating rate money
market accounts which averaged 38.4% of total deposits for the first nine months
of  1999.

INTEREST  INCOME
     For  the nine months ended September 30, 1999, the Company's earning assets
averaged  $166.8  million  and  had an average yield of 9.17%.  This compares to
average  earning  assets  of  $157.6  million for the first nine months of 1998,
yielding  approximately  9.31%.  Thus,  the  5.9%  increase in volume of average
earning  assets,  offset  by  the  14  basis  point  reduction in average yield,
accounts  for  the  $418,000 (3.9%) increase in interest income between 1998 and
1999.

     Consolidated  loans  averaged  approximately  82%  of the Company's average
earning  assets  for the first nine months of 1999 compared to 75% for the prior
year.  The  majority  of  the  Company's  loans  are  tied  to  the  prime  rate
(approximately 64% of the Bank's portfolio is at floating rates at September 30,
1999),  which  averaged  7.87% and 8.50% for the nine months ended September 30,
1999 and 1998, respectively.  During the first nine months of 1999, consolidated
loans  averaged $136.9 million, yielding an average of 9.78%, compared to $118.6
million,  yielding  an average of 10.30% for the first nine months of 1998.  The
52  basis  point  decrease in the average yield on loans is primarily related to
the  lower  prime lending rate which decreased 63 basis points during the fourth
quarter  of  1998.  The  higher  level  of average loans (which increased 15.4%)
offset  the decrease in average rate and resulted in an increase in consolidated
interest  income  on  loans  of  $880,000  or  9.6%.

     Investment  securities  averaged  $26.0  million  or 16% of average earning
assets  and yielded 6.48% (tax equivalent basis) during the first nine months of
1999,  compared  to  average  securities  of  $27.5  million yielding 6.54% (tax
equivalent basis) for the nine months ended September 30, 1998.  The decrease in
the  average  yield  of the investment portfolio is related to the portfolio mix
and  the timing of higher yielding securities maturing.  This decrease, combined
with  the  5.3%  reduction in average securities and resulted in the decrease of
interest  income  on  securities  of  $126,000.

INTEREST  EXPENSE
     The Company's interest expense for the nine months ended September 30, 1999
was  $4.8 million.  The decrease of 6.3% from the comparable nine months in 1998
of  $5.2  million  was  directly  related to the 59 basis point reduction in the
average  rate  on  liabilities,  offset  by  the  5.8%  increase  in  volume.
Interest-bearing  liabilities  averaged $140.0 million for the first nine months
of  1999  with  an  average  rate  of  4.62%.  This  is  compared  to  average
interest-bearing liabilities of $132.4 million with an average rate of 5.21% for
the  nine  months ended September 30, 1998.  The decrease in the average rate on
liabilities  is  the  result of maturities of certificates of deposit renewed at
lower  current  market rates and the shift of deposits to a larger percentage of
lower  cost, floating rate deposits which were repriced immediately as the prime
rate dropped in the fourth quarter of 1998.  At September 30, 1999, money market
deposits accounted for 40% of total deposits compared to 36% for the prior year.

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

     Included  in the net income for the nine months ended September 30, 1999 is
a  provision for loan losses of $318,000 compared to a provision of $141,000 for
the  first  nine months of 1998.  The higher net loan originations for the first
nine  months  of  1999, which totaled $13.6 million compared to $2.6 million for
1998,  led to the increase in the provision for loan losses in the current year.


NONINTEREST  INCOME  AND  EXPENSES
     Noninterest  income,  which  is  primarily  related  to  service charges on
customers'  deposit  accounts;  credit  card interchange fees; merchant discount
fees;  commissions  on nondeposit investment product sales and insurance product
sales; and mortgage origination fees, was $1.2 million for the nine months ended
September  30,  1999 compared to $1.1 million for the first nine months of 1998,
or  an  increase  of  4.3%.  Reductions  in  the  volume  of activity generating
insurance  commission  income  was  offset  by  increases  in other income items
related  to  gains  on  sales  of  available  for sale investment securities and
company  vehicles.  Other  increases are related to the higher level of activity
and  transactions  of  the  Bank generating other income in the normal course of
business.

     For  the  nine  months  ended September 30, 1999, noninterest expenses were
$4.8  million which is an increase of 6.8% over the amount incurred for the nine
months  ended  September  30,  1998  of $4.5 million.  The most significant item
included  in  other  expenses  is salaries, wages and benefits which amounted to
$2.6  million  for  the nine months ended September 30, 1999 as compared to $2.4
million  for the nine months ended September 30, 1998.  The increase of $156,000
or  6.5%  is a result of normal annual raises, and additional staff added at the
new  branch  of  the  Bank  in  the  fourth  quarter  of  1998.

     The  28.8% ($98,000) increase in occupancy and the 17.7% ($73,000) increase
in  furniture,  fixtures, and equipment ("FFE") between the first nine months of
1999 and 1998 is directly related to normal expenses, including rent, utilities,
depreciation, property taxes, maintenance and insurance, associated with the new
Bank  branch  facility  which  opened  in  the  fourth  quarter  of  1998.

     Included in the line item "other expenses", which decreased $22,000 or 1.7%
from  the  comparable  period of 1998, are charges for OCC assessments; property
and  bond  insurance;  ATM  switch  fees;  credit  card  expenses;  professional
services;  education  and  seminars; advertising and public relations; and other
branch  and  customer  related  expenses.  The  decrease is primarily related to
reductions  in  advertising,  education, professional services, and travel which
were  incurred  in  1998  at  higher  levels  than  experienced  in  1999.

INCOME  TAXES
     For the nine months ended September 30, 1999, the Company reported $700,000
in  income  tax expense, or an effective tax rate of 28.4%.  This is compared to
income  tax  expense  of  $789,000  for the same period of the prior year, or an
effective  tax  rate  of 36.5%. The reduction in the effective rate is primarily
related  to  the  higher  level  of  tax-free  municipal  investments  in  1999.


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 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  Bank's  liquidity  ratio,  which  is an
indication  of  the  a  company's  ability  to  meet  its  short  term  funding
obligations,  was 15% and 20%, respectively, at September 30, 1999 and 1998.  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.  At
September  30,  1999, the Company had approximately $33 million 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  $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 September 30, 1999.
In  addition,  Summit  Financial  has  an available line of credit totaling $2.5
million  with  an unaffiliated financial institution, all of which was available
at  September  30,  1999.  Additional  sources of liquidity for Summit Financial
include  unsecured borrowings from individuals, 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  equity  at  September  30,  1999  was $16.9 million or 9.0% of total
assets.  This  is compared to $15.1 million or 8.9% of total assets at September
30, 1998.  The $1.8 million increase in total shareholders' equity resulted from
the  retention  of earnings and stock issued pursuant to the Company's incentive
stock  option  plan,  offset by the increase in unrealized loss on available for
sales  securities.

     Book  value  per  share at September 30, 1999 and 1998 was $5.52 and $4.97,
respectively.  Tangible  book value per share at September 30, 1999 and 1998 was
$5.34  and  $4.74,  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.  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.

     The  Company  and  the  Bank  are  required to maintain minimum amounts and
ratios  of total risk-based capital, Tier 1 capital, and Tier 1 leverage capital
as  set  forth in the table following.  Management believes, as of September 30,
1999,  that  the  Company and the Bank meet all capital adequacy requirements to
which they are subject.  At September 30, 1999 and 1998, the Bank is categorized
as  "well  capitalized"  under  the  regulatory  framework for prompt corrective
action.  There  are  no  current  conditions  or events that management believes
would  change  the  Company's  or  the  Bank's  category.

     The  following  table  presents the Company's and the Bank's actual capital
amounts  (dollars  in thousands) and ratios at September 30, 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 SEPTEMBER 30, 1999
THE COMPANY
Total capital to risk-weighted assets   $18,996  12.30%  $12,359   8.00%            N.A.
Tier 1 capital to risk-weighted assets  $17,065  11.05%  $ 6,180   4.00%            N.A.
Tier 1 capital to average assets        $17,065   9.64%  $ 7,082   4.00%            N.A.

THE BANK
Total capital to risk-weighted assets   $17,191  11.30%  $12,166   8.00%  $15,207  10.00%
Tier 1 capital to risk-weighted assets  $15,372  10.11%  $ 6,083   4.00%  $ 9,124   6.00%
Tier 1 capital to average assets        $15,375   8.79%  $ 6,992   4.00%  $ 8,740   5.00%

AS OF SEPTEMBER 30,1998
THE COMPANY
Total capital to risk-weighted assets   $16,161  12.25%  $10,556   8.00%            N.A.
Tier 1 capital to risk-weighted assets  $14,514  11.00%  $ 5,278   4.00%            N.A.
Tier 1 capital to average assets        $14,514   8.76%  $ 6,625   4.00%            N.A.

THE BANK
Total capital to risk-weighted assets   $14,749  11.40%  $10,350   8.00%  $12,937  10.00%
Tier 1 capital to risk-weighted assets  $13,161  10.17%  $ 5,175   4.00%  $ 7,762   6.00%
Tier 1 capital to average assets        $13,161   8.06%  $ 6,528   4.00%  $ 8,160   5.00%

</TABLE>


<PAGE>

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.
Approximately  40%  of the Company's liabilities at September 30, 1999 had fixed
terms  that can be repriced only at maturity.  During periods of rising interest
rates, as experienced in the third quarter of 1999, the Company's assets reprice
faster  than  the supporting liabilities.  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.  Given the Company's
current balance sheet structure, the opposite effect (that is, a decrease in net
interest  income)  is  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.


ACCOUNTING,  REPORTING  AND  REGULATORY  MATTERS
     In  June  1998,  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 is effective for all
fiscal  quarters of all fiscal years beginning after June 15, 2000, with earlier
adoption  permitted,  as  amended  by  SFAS  137.  Because  the  Company  has no
derivative  activity at this time, management does not expect that this standard
will  have  a  significant  effect  on  the  Company.


YEAR  2000
     The  Company  recognizes  that  there  is  a  business risk in computerized
systems  as  the  calendar  rolls  into the next century.  The Federal Financial
Institutions  Examination  Council  ("FFIEC") issued an interagency statement on
May  5,  1997,  providing  an outline for institutions to effectively manage the
Year  2000  ("Y2K")  challenges.  The  Company  has  developed  an  ongoing plan
designed  to  ensure  that  its  operational  and  financial systems will not be
adversely  affected  by  Y2K  software failures due to processing errors arising
from  calculations  using  dates  after  December  31, 1999.  The Company has an
internal  task  force  assigned  to  this project and the Board of Directors and
management  of  the Company have established Year 2000 compliance as a strategic
initiative.

     The  Company has completed the assessment phase of the project in which all
critical  applications  are  identified  and  programming issues determined.  In
conjunction  with  this  phase,  the  Company  inventoried  all of its hardware,
software,  and  environmental or other non-computerized systems.  Each inventory
item  (equipment,  application, or service provider system) has been prioritized
and  evaluated  as  to its Y2K compliance.  Currently, all systems identified as
"mission critical" have been certified as Y2K compliant by the vendors providing
the  software  applications or hardware.  The Company has successfully completed
its  testing  phase  for both the mission critical applications as well as other
inventoried  items.  The  Company  has  also  completed both its remediation and
business  resumption  contingency  plans  and is in the validation phase for the
resumption  plan.  In  the  business  resumption  contingency plan, all possible
scenarios have attempted to be addressed, including the resources and procedures
necessary  to manually process transactions in the event the core systems do not
function  on  January 1, 2000.  While the Company believes that it has available
resources  to  assure  Y2K  compliance, it is to some extent dependent on vendor
cooperation.  Accordingly,  management  is  in constant contact with its various
vendors  and  is  monitoring  their  Y2K  efforts  on  an  on-going  basis.

     In  addition to the internal processing risks associated with the Year 2000
issue,  the  Company has made every attempt to address external risks, primarily
credit  and  liquidity,  associated with our major customers and their Year 2000
remediation  efforts.  The way that these material customers approach and comply
with  Y2K  readiness  will have a potentially significant impact on the Company.
In  an  effort  to  identify  and manage the risks posed by those customers, the
Company  has  (1)  identified  material customers; (2) evaluated their Year 2000
preparedness through questionnaires and interviews; (3) assessed their Year 2000
risk  to  the  Company;  and  (4) implemented appropriate controls to manage and
mitigate  their Year 2000 related risk to the Company.  The controls implemented
may  include  ongoing monitoring of a customer's Y2K remediation efforts, review
and  adjustment  of  credit  maturities,  obtaining  additional  collateral,  or
including  specific  Year  2000  language  in  loan  agreements, as appropriate.
Management  is  also  addressing all new relationships for Y2K risk.  Currently,
there  are  no  significant customers which are rated as a "high" Year 2000 risk
and  which  the Company believes a risk of loss is present.  Other components of
the  Company's  Year  2000 Customer Awareness Program include questionnaires for
major  customers,  hosting  seminars  for customers, employee training seminars,
distributing  the  Company's  "Year  2000 Position Statement" which contains the
initiatives and status of the Company's Y2K efforts, and informative mailers and
brochures  describing  the  Year  2000 challenges in general as well as specific
information  related  to  the  Company.

     At  this  time,  the  Company  believes the cost of making modifications to
correct  any  Y2K  issues  will be nominal.  Corrections and "fixes" to software
provided  by  third-party vendors is covered in the annual maintenance fees paid
by  the  Company  on  a  regular  basis.  In  addition,  equipment  and software
acquisition  expenses  are  not  expected  to  materially differ from historical
levels  as the Company routinely upgrades and purchases technologically advanced
software  and hardware on a continual basis and expects to specifically evaluate
and  test  such  purchases  for  Y2K  compliance.  There has been no significant
change  to  the Company's existing technology plans due to any Year 2000 issues.

     The Company's management believes it has adequately addressed the Year 2000
issue  and  has  adequate resources and personnel executing the Year 2000 Action
Plan  to  ensure compliance in accordance with the timeframes established in the
plan  and  as  mandated by the regulatory agencies which oversee the Company and
its subsidiaries.  The Company's bank subsidiary has already been subject to and
will  undergo  additional  examinations  of  its Year 2000 initiatives to ensure
compliance  with  all  regulatory requirements.  Management does not know of any
trends,  events,  or  uncertainities  related  to  the  Year 2000 issues that it
believes  may  result in a significant adverse effect on the Company's financial
position.


INTEREST  RATE  SENSITIVITY
     Achieving  consistent  growth in net interest income is the primary goal of
the Company's asset/liability function.  The Company's profitability is affected
by  fluctuations in interest rates.  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.  The Company seeks to accomplish this goal while
maintaining  adequate  liquidity and capital.  A sudden and substantial increase
in interest rates may adversely impact the Company's earnings to the extent that
the  interest  rates on interest-earning assets and interest-bearing liabilities
do  not  change at the same speed, to the same extent or on the same basis.  The
Company's  asset/liability  mix  is  sufficiently balanced so that the effect of
interest rates moving in either direction is not expected to be significant over
time.

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

     The Company also uses interest rate sensitivity gap analysis to monitor the
relationship  between  the maturity and repricing of its interest-earning assets
and  interest-bearing  liabilities.  Interest rate sensitivity gap is defined as
the  difference  between  the  amount  of  interest-earning  assets  maturing or
repricing  within  a  specific  time  period  and the amount of interest-bearing
liabilities  maturing  or  repricing  within  the  same time period.  The static
interest  sensitivity  gap  position,  while  not a complete measure of interest
sensitivity, is also reviewed periodically to provide insights related to static
repricing  structure  of  assets  and  liabilities.  At September 30, 1999, on a
cumulative  basis  through  12  months,  rate-sensitive  liabilities  exceed
rate-sensitive  assets,  resulting  in  a  12  month  period liability sensitive
position  at  the  date  of $26.0 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 approximately 64% 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, resulting in increases in the net interest income during
periods  of  rising rates and decreases in net interest income when market rates
decline.  In  the  fourth  quarter  of  1998, interest rates dropped, leading to
declines  in  the  average  yield  on assets for the first six months of 1999 as
compared  to  1998,  until rates began to increase in the third quarter of 1999.
However,  the  Company  was  able to increase the net interest margin in 1999 as
compared  to  1998  due  to  the  reduction  in  the overall cost of funds based
primarily  on  (1)  the  higher  percentage of floating rate deposits in 1999 as
compared  to  1998;  and  (2)  the  maturities  of higher priced certificates of
deposit  throughout  1998  which  were  replaced with CDs at lower current rates
during  the  year.

<PAGE>


       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 - 400 basis points increase or decrease in the market
interest  rates.  The  Company's Board of Directors has adopted an interest rate
risk policy which establishes maximum allowable decreases in NPV in the event of
a  sudden  and  sustained  increase  or  decrease  in  market  interest  rates.

     As of September 30, 1999, 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, 1998. 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, 1998 included in the
Company's  1998  Annual  Report  on  Form  10-K.


<PAGE>

                          SUMMIT FINANCIAL CORPORATION

                         PART  II.  OTHER  INFORMATION



Item  1.     Legal  Proceedings.

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

Item  2.     Changes  in  Securities.

     None.

Item  3.     Defaults  Upon  Senior  Securities.

     None.

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

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

Item  5.     Other  Information.

     None.

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

(a)     Exhibits:

     27.1  Financial  Data  Schedule

     (b)     Reports  on  Form  8-K:

     None.


<PAGE>


                   SUMMIT  FINANCIAL  CORPORATION

                           SIGNATURES



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

SUMMIT  FINANCIAL  CORPORATION


Dated:  November  8,  1999

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


Dated:  November  8,  1999

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