MOOREFIELD, W. Va. and MULLENS, W.Va.–(GLOBE NEWSWIRE)–Summit Financial Group, Inc. (“Summit”) (NASDAQ:SMMF) and Peoples Bankshares, Inc. (“Peoples”) announce the signing of a definitive merger agreement between Summit and Peoples.
Pursuant to the terms of the merger agreement, Summit will acquire all of the outstanding shares of common stock of Peoples in exchange for cash in the amount of $47.00 per share or 1.7193 shares of Summit common stock, resulting in an aggregate transaction value of approximately $25.5 million. Peoples shareholders will have a right to receive cash, Summit’s common stock or a combination of cash and Summit common stock, subject to proration to result in approximately 50% cash and 50% stock consideration in the aggregate. Total merger consideration received by Peoples shareholders is subject to an adjustment if Peoples’ adjusted shareholders’ equity as of the effective date of the merger deviates from the range mutually determined by the parties.
The transaction has been unanimously approved by each company’s board of directors and is expected to close early in 2019, pending regulatory approvals and the approval of Peoples’ shareholders. Following consummation of the merger, Peoples’ wholly-owned subsidiary First Peoples Bank, Inc. will be consolidated 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 Peoples not only further expands Summit’s community banking footprint in Wyoming and Raleigh Counties of West Virginia, but permits both Peoples’ and Summit’s clients the added convenience of more banking locations provided by our combined organizations. Our top priority now is to make sure Peoples’ clients experience a smooth transition.”