MOOREFIELD, W.Va. — Summit Financial Group has signed a definitive agreement to buy PSB Holding and its subsidiary Provident State Bank in a deal valued at $53.9 million.
Under the terms of the all-stock transaction, PSB shareholders will be entitled to receive 1.2347 shares of Summit common stock for each outstanding share of PSB common stock.
As of Sept. 30, 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.
Upon completion, which is subject to regulatory approval, Maryland-based Provident State Bank will be merged with and into Summit’s banking unit, Summit Community Bank, which has branches in the Tri-State area.
“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,’” Summit’s president and CEO H. Charles Maddy III said in the announcement.
“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,” Melissa Quirk, president and CEO of Provident State Bank, said. “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.”
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