The transaction has been unanimously approved by the board of directors of both companies and is planned to be completed in early 2020
Image: The transaction includes merger of Cornerstone Bank with Summit Community Bank. Photo: Courtesy of rawpixel from Pixabay.
US-based financial holding company Summit Financial Group has signed an agreement to acquire Cornerstone Financial Services for approximately $28.5m (£22.8m).
Under the merger agreement terms, Summit would acquire all of the outstanding shares of common stock of Cornerstone for an amount of $5,700 per share in cash or 228 shares of Summit common stock.
Cornerstone shareholders will hold a right to receive cash, Summit’s common stock or a combination of cash and Summit common stock, based on proration to result in 50% cash and 50% stock consideration for the deal.
Summit president and chief executive officer Charles Maddy said: “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’.
“Partnering with Cornerstone not only further expands Summit’s community banking footprint into the central region of West Virginia, but it permits both Cornerstone’s and Summit’s clients the added convenience of more banking locations provided by our combined organizations. Our top priority now is to make sure Cornerstone’s clients experience a smooth transition.”
The transaction includes merger of Cornerstone Bank with Summit Community Bank
The transaction has been unanimously approved by the board of directors of both companies and is planned to be completed in early 2020, subject to receipt of regulatory approvals and Cornerstone’s shareholders’ approval.
In addition, Cornerstone’s wholly-owned subsidiary, Cornerstone Bank, would be combined with Summit’s bank subsidiary, Summit Community Bank, which operates thirty-two banking locations.
Headquartered in West Union, West Virginia, Cornerstone is a bank holding company operates four community banking offices in central West Virginia through Cornerstone Bank.
Cornerstone president Lorraine Brisell said: “We are excited to partner with Summit, an exceptionally strong financial services company that mirrors our long standing commitment to promote community banking and provide excellence in serving our clients.
“Summit’s demonstrated history of successful merger integration, operating performance, focus on employee value and well-planned product design and development, makes them an ideal partner for Cornerstone.”
For the transaction, investment banking firm D.A. Davidson & Co. and the law firm of Bowles Rice, have advised Cornerstone, and the law firm of Hunton Andrews Kurth represented Summit.