Summit Financial Group Inc. in Moorefield, W.Va., is once again planning to buy Greater Atlantic Financial Corp. in Reston, Va.
The companies announced a new definitive agreement Tuesday. Summit did not say how much it would pay.
Their initial $13.9 million deal, announced in April of last year, was terminated a year later. At the time the companies did not say why the deal fell through, but industry observers said the $1.5 billion-asset Summit likely called it off because the $231 million-asset Greater Atlantic's asset quality had deteriorated further in the first quarter.
Under the new agreement, Greater Atlantic shareholders would receive Summit stock equal to $4 for each of their shares divided by the average closing price of Summit's common stock for the 20 days before the deal closes.
In addition to customary regulatory approvals, the deal requires Greater Atlantic's thrift subsidiary, Greater Atlantic Bank, to maintain minimum regulatory capital ratios of Tier 1 capital equal to 4%, Tier 1 risk-based capital equal to 4%, and total risk-based capital equal to 8%. The thrift also must have $144 million of core deposits when the deal closes.
