The deal is expected to complete in Q2 2023. Credit: Romain Dancre on Unsplash.

Summit Financial Group (Summit) has signed a definitive agreement to buy PSB Holding and its subsidiary Provident State Bank in a deal valued at $53.9m.

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.

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As of 30 September 2022, the merged entity will have about $4.5bn in total assets, $3.5bn in gross loans and $3.6bn in deposits.

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.

Summit president and CEO H. Charles Maddy, III said: “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.”

Provident State Bank president and CEO Melissa Quirk said: “We are excited about our combination with Summit. They are a larger institution with a breadth of products and services. Summit is just as committed to community banking as we are.

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“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.”

The transaction, which has secured approval from the board of directors of both entities, is expected to close in the second quarter of 2023.