Burke & Herbert Financial Services and Summit Financial Group inch towards closing merger deal
Burke & Herbert Financial Services Corp. (Nasdaq: BHRB) and Summit Financial Group, Inc. (Nasdaq: SMMF) announced they have secured all necessary regulatory approvals to finalize their merger of equals, previously announced on August 24, 2023. The deal, valued at approximately $371.5 million or $25.20 per share of Summit common stock, is based on the closing price of Burke & Herbert’s common stock at $49.98 as of August 23, 2023. The merger is scheduled to close on May 3, 2024, subject to customary closing conditions.
The merger will result in a combined entity with assets exceeding $8 billion and a market capitalization nearing $750 million. The operational headquarters will be in Alexandria, Virginia, with a significant presence in Moorefield, West Virginia. The combined company will be named Burke & Herbert Financial Services Corp. and will continue to trade under the Burke & Herbert ticker symbol “BHRB” on the Nasdaq Capital Market. The merger aims to blend the strengths of both organizations, enhancing their capacity to serve more communities across Virginia, West Virginia, Maryland, Delaware, and Kentucky with over 75 branches.
This strategic alignment is projected to yield an earnings per share of approximately $7.90 in the first full year post-merger, assuming full realization of planned cost savings. Additionally, the merger establishes a $5 million community foundation to support ongoing community engagements and initiatives.
“We are excited about our growth into Western New York and expanding our unparalleled home services expertise to a new range of customers as we take the next step in our growth strategy,” said Jason Rabbino, CEO of Sila Services. “Partnering with T-Mark enhances our industry-leading position and expands our strong presence in New York. We’re thrilled to welcome Ryan Miller and the entire team at T-Mark to the Sila Services family. For over 25 years, the T-Mark team has built an unmatched reputation rooted in providing first-class quality repairs and installations, delivering guaranteed customer satisfaction, and supporting the communities they serve across Western New York.”
Burke & Herbert Bank & Trust Company, part of Burke & Herbert Financial Services Corp., is the oldest continuously operating bank in the greater Washington, D.C. metropolitan area, boasting a $3.6 billion financial portfolio. Summit Financial Group, Inc., the holding company for Summit Community Bank, Inc., manages $4.6 billion and has a robust presence in the Mid-Atlantic and Southeastern U.S.
This merger is not just a significant financial transaction but a strategic expansion that positions the new entity to leverage combined resources for enhanced customer service and community involvement. With a solid financial base and a shared vision for growth, Burke & Herbert and Summit are poised to become a formidable force in the regional banking sector, setting a new benchmark in customer and community service.