SEATTLE -- Summit Bancorp said that it and Washington Mutual Savings Bank

have signed a definitive merger agreement.

The pact calls for Washington Mutual to exchange $11.60 worth of its common stock for each share of Summit, in a transaction valued at $24.8 million.

The price could be adjusted downward to $11.30 per Summit share, and Washington Mutual has the right to terminate the agreement if the approval of Summit's major shareholders is not obtained, Summit said.

The transaction is expected to be completed in the fourth quarter.

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