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MVB Financial (MVBF) to Divest Banking Centers to Summit Bank

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MVB Bank, a subsidiary of MVB Financial Corp. (MVBF - Free Report) , recently announced a deal to sell its four banking centers to Summit Community Bank, Inc. —  a subsidiary of Summit Financial Group, Inc. (SMMF - Free Report) . The deal, expected to close in the third quarter of 2021, is subject to customary closing conditions.

Financial terms of the deal remain undisclosed. As a result of this divesture, Summit Community Bank will assume roughly $193 million, and $57 million of deposits and loans respectively.

As part of the transaction, Summit Community Bank will acquire MVB Bank’s Southern West Virginia community banking operations, which includes four full-service banking centers at Charleston, Hurricane, Barboursville and Huntington, along with drive-up banking locations at Barboursville and Huntington.

The president and CEO, MVB Financial, Larry F. Mazza said, “As trusted partners, MVB Bank and Summit Community Bank share a successful history, including a prior branch transaction in which Summit purchased MVB’s Eastern Panhandle West Virginia banking centers in 2020. This transaction is the latest in a series of opportunistic activities undertaken by MVB that have resulted in industry-leading value creation for MVB shareholders.”

Per Summit Bank’s president and CEO, H. Charles Maddy, III, “Summit’s purchase of these branches represents an outstanding opportunity to expand our presence in and commitment to the Charleston-Huntington, West Virginia, market as well as adds the convenience of more banking locations for our clients.”

This divestiture is part of MVB Bank’s aim to be focused on its core commercial markets in North Central West Virginia and Northern Virginia, and the Fintech vertical.

Similar Actions by Other Banks

Northwest Bank, a subsidiary of Northwest Bancshares, Inc. (NWBI - Free Report) , has announced a deal to sell its insurance business unit — Northwest Insurance Services — to the insurance brokerage and consulting firm, USI Insurance Services. Financial terms of the deal, announced in April 2021, remain undisclosed.

In March 2021 Wells Fargo (WFC - Free Report) has inked a definitive agreement to sell its Corporate Trust Services business to Australia-based Computershare Limited for $750 million. This is in line with the company’s strategy of concentrating on businesses core to its consumer and corporate client base. The transaction, likely to close in the first half of 2021, is still subject to customary closing conditions.

Zacks Rank & Price Performance

Over the past six months, shares of MVB Financial have surged 133.4%, outperforming the industry’s 3.8% rally.

MVB Financial currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

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