Burke & Herbert Financial Services completes merger with Summit Financial Group

Burke & Herbert Financial Services Corp. (Nasdaq: BHRB) today announced the successful completion of its merger with Summit Financial Group, Inc. (Nasdaq: SMMF), marking a significant milestone in the history of both companies. Effective May 3, 2024, Summit Financial Group has merged with and into Burke & Herbert, including the merger of Summit Community Bank, Inc. into Burke & Herbert Bank & Trust Company.

Merger Details and Financial Implications

The merger, first announced in August 2023, was valued at approximately $371.5 million, or $25.20 per share of Summit Financial Group common stock. This strategic combination has created a bank holding company with assets surpassing $8 billion and a combined market capitalization nearing $750 million. Burke & Herbert Financial Services’ common stock closed at $49.98 on August 23, 2023. The merged entity is expected to have a 50-50 ownership split between the shareholders of both companies, with anticipated earnings per share of around $7.90 in the first full year of operation, assuming fully realized cost savings.

Burke & Herbert Financial Services announces the completion of its merger with Summit Financial Group, expanding community banking services.

Leadership Statements and Future Outlook

David P. Boyle, Chair and Chief Executive Officer of Burke & Herbert, expressed optimism about the merger: “The consummation of this partnership brings together two organizations committed to being the quintessential community bank in our markets, where we care about the people who live and work among us. We look forward to delivering increased value for our constituencies with an experienced and respected board, a seasoned management group, and a team of people dedicated to exceptional service.”

H. Charles Maddy, III, President, also commented on the strategic alignment: “This combination brings together organizations that are unified by a shared vision, values, and a forward-thinking approach to banking. Our synergistic cultures strategically position us for future growth and lay the foundation for cultivating richer relationships in order to become the most sought-after community bank in our markets.”

This merger between Burke & Herbert and Summit Financial Group represents a transformative step in the community banking sector. By combining their resources and aligning their corporate cultures, the new entity is poised to enhance its service offerings and expand its market presence significantly. The strategic focus on synergy and shared values is expected to facilitate smooth integration and drive long-term growth, benefiting stakeholders and customers alike.