MOOREFIELD, W.Va. (AP) - Summit Financial Group Inc. plans to acquire Greater Atlantic Financial Corp. in a cash and stock deal that Summit says will expand its presence in Virginia and provide access to markets in Maryland.
Summit said Thursday that it has signed an agreement to acquire Reston, Va.-based Greater Atlantic's common stock for $4.60 per share. The deal's total value will depend on Greater Atlantic's adjusted shareholder equity at the end of the month in which it sells a branch in Pasadena, Md., to another institution, which Summit didn't identify.
For example, if Greater Atlantic's adjusted shareholder equity is equal to $11 million, the deal's value would be about $18.2 million. If the adjusted shareholder equity is equal to $10.5 million, the deal's value would be about $17.7 million, said Summit, a financial holding company based in Moorefield.
Summit said it will pay 70 percent of the price in stock and 30 percent in cash. The acquisition is expected to be completed in the fourth quarter of this year, pending regulatory approval.
Greater Atlantic's other branches are located in Reston, South Riding, New Market and Front Royal, Va.
'Greater Atlantic provides us with an opportunity to expand our presence in one of the best markets in the country. We know this market well and have been very successful in the de novo expansion of our community banking activities in northern Virginia over the past eight years,' said H. Charles Maddy III, Summit's president and chief executive officer.
Summit operates 15 branches through Moorefield-based Summit Community Bank and Winchester, Va.-based Shenandoah Valley National Bank. Summit, which has $1.2 billion in assets, also operates Summit Insurance Services LLC in Moorefield.
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