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Posted December 17, 2008 | Copyright © The Northern Virginia Daily
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Summit deal with Greater Atlantic off
MOOREFIELD, W.Va. -- Summit Financial Group on Tuesday announced the termination of its agreement to acquire Greater Atlantic Bank of Reston.
The holding company for Winchester-based Summit Community Bank said the decision was mutual because one or more conditions to closing the deal could not be met prior to Dec. 31.
"While we are disappointed that we were unable to move forward with the transaction, we believe the mutual termination is in the best interest of shareholders, customers and employees," Summit President and CEO H. Charles Madddy III says in a statement.
The deal, which would have enabled Summit to tap into markets in Northern Virginia and along the Interstate 81 corridor, had originally been slated for the fourth quarter of 2007. Greater Atlantic's shareholders approved the deal in March, but Summit pulled the plug April 12.
In June, the banks again agreed to terms, and Greater Atlantic shareholders approved the merger in September.
Summit reported a loss of $7.7 million in the third quarter, hurt by a soured real estate market and a further write-down in the value of its preferred stock in government-backed mortgage giants Fannie Mae and Freddie Mac.
Summit said it expects a pre-tax charge of approximately $1.4 million in the fourth quarter from its previous purchase of Greater Atlantic stock and certain acquisition costs.
-- Daily Staff Report
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