Summit Financial is buying Maryland bank

Summit Monetary Group in Moorefield, West Virginia, has agreed to accumulate PSB Holding Corp. in Preston, Maryland.

The all-stock deal is valued at $53.9 million and is predicted to shut within the second quarter. It could create a financial institution with whole belongings of $4.5 billion, loans of $3.5 billion and deposits of $3.6 billion, Summit mentioned.

The $594 million-asset PSB, the holding firm for Provident State Financial institution, has 10 branches on the Jap Shore of Maryland and in Delaware.

“Partnering with PSB not solely additional expands Summit’s neighborhood banking footprint to the japanese shore … but additionally permits each PSB’s and Summit’s purchasers the added comfort of enhanced banking providers at extra areas,” H. Charles Maddy III, president and CEO of the $3.9 billion-asset Summit, mentioned in a information launch Monday.

Summit operates all through West Virginia, Virginia, Kentucky and the Washington, D.C., metropolitan space. It has 44 branches.

Provident State President and CEO Melissa Quirk mentioned the mix would supply clients entry to a better breadth of services and products. “By becoming a member of forces, we are able to proceed to deliver alternatives and advantages to our shareholders, clients and communities,” she mentioned within the launch. 

Summit mentioned in a presentation it plans to chop about 25% of PSB’s annual noninterest bills. The customer estimated the deal can be 4.5% accretive to its earnings per share in 2023 and 9.7% accretive the next 12 months. Summit mentioned it ought to earn again 7% tangible e-book worth dilution inside three and a half years.

The events agreed to a termination price of $2.2 million, payable by PSB to Summit ought to the deal be known as off, in accordance with a regulatory submitting.

PSB was suggested by Piper Sandler and was represented by the regulation agency Holland & Knight. Summit was represented by the regulation agency of Bowles Rice.