MOOREFIELD, W.Va. and PRESTON, Md., Dec. 12, 2022 (GLOBE NEWSWIRE) — Summit Financial Group, Inc. (NASDAQ: SMMF) and PSB Holding Corp. announce the signing of a definitive merger agreement between Summit and PSB.
Subject to the terms of the merger agreement, PSB shareholders will receive 1.2347 shares of Summit common stock for each outstanding share of PSB common stock. Based upon the 20-day average closing price of $28.35 per share of Summit’s common stock through December 8, 2022, this equates to $35.00 per PSB common share and an aggregate transaction value of approximately $53.9 million. As of September 30, 2022, the combined company would have had approximate total assets of $4.5 billion, gross loans of $3.5 billion and deposits of $3.6 billion.
The transaction has been approved by each company’s board of directors and is expected to close in the second quarter of 2023, pending regulatory approvals and the approval of PSB’s shareholders. Following consummation of the merger, PSB’s bank subsidiary, Provident State Bank, Inc., will be merged with Summit’s bank subsidiary, Summit Community Bank, Inc.
“This transaction represents an exceptional opportunity for Summit to combine with a financially strong and exceptionally well-managed bank possessing a culture and core values similar to ours, as well as the same commitment to build long-term client relationships by providing ‘Service Beyond Expectations’,” stated Summit’s President and Chief Executive Officer, H. Charles Maddy, III. “Partnering with PSB not only further expands Summit’s community banking footprint to the Eastern Shore of Maryland and Delaware, but also permits both PSB’s and Summit’s clients the added convenience of enhanced banking services at more locations. Our top priority now is to assure PSB’s clients experience a smooth transition.”
“We are excited about our combination with Summit. They are a larger institution with a breadth of products and services,” said Melissa Quirk, President and Chief Executive Officer of Provident State Bank. “Summit is just as committed to community banking as we are. Together we will continue our commitment to the communities that we serve, with the personal banking experience our customers expect. By joining forces, we can continue to bring opportunities and benefits to our shareholders, customers and communities.”
PSB was advised by the investment banking firm of Piper Sandler & Co., and was represented by the law firm of Holland & Knight LLP. Summit was represented by the law firm of Bowles Rice LLP.
About Summit
Summit Financial Group, Inc. is the $3.9 billion financial holding company for Summit Community Bank, Inc. Its talented bankers serve commercial and individual clients throughout West Virginia, the Washington, D.C. metropolitan area, Virginia, and Kentucky. Summit’s focus on in-market commercial lending and providing other business banking services in dynamic markets is designed to leverage its highly efficient operations and core deposits in strong legacy locations. Residential and consumer lending, trust and wealth management, and other retail financial services are offered through convenient digital and mobile banking platforms, including MySummitBank.com and 44 full-service branch locations.
About PSB
PSB Holding Corp., at September 30, 2022, had $594 million in assets and is the holding company for Provident State Bank, Inc., a full-service bank serving the eastern shore of Maryland since 1904. Provident State Bank, Inc. has ten branch locations in Preston, Federalsburg, Ridgely, Denton, Easton-Elliot Road, Easton-Harrison Street, Secretary, Cambridge, Salisbury, and Lewes (Delaware). For more information on PSB Holding Corp. and Provident State Bank, Inc., visit www.providentstatebank.com.
