The Bank Slate


Burke & Herbert, Summit Financial announce merger

Burke & Herbert Financial Services in Alexandria, Va., has agreed to buy Summit Financial Group in Moorefield, W.Va.

The $3.6 billion-asset Burke & Herbert said in a press release that it will pay $371.5 million in stock for the $4.5 billion-asset Summit. The deal is expected to close in the first quarter.

The combined entity, which will retain the Burke & Herbert name, will be equally owned by each company’s shareholders and the 16-member board will be evenly split.

The company, which will be based in Alexandria, will have $8 billion of assets and more than 75 branches in five states. The transaction is expected to result in combined earnings per share of about $7.90 in the first full year of combined operations.

The companies also said they will create a $5 million community foundation to ensure support of Summit’s communities.

“This partnership brings together two organizations dedicated to a community banking model that places an emphasis on service and dedication to the people who live and work among us,” David Boyle, Burke & Herbert’s chairman, president and CEO, said in the release.

Charlie Maddy, Summit’s president and CEO, will become Burke & Herbert’s president and join the board. Oscar Bean, Summit’s chairman, will become vice chairman.

Burke & Herbert plans to cut about 11% of the combined company’s annual noninterest expenses. It expects to incur $45.5 million of merger-related expenses.

Keefe, Bruyette & Woods and Troutman Pepper Hamilton Sanders advised Burke & Herbert. D.A. Davidson and Bowles Rice advised Summit.

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