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Reston, Va.-based Greater Atlantic Financial Corp. ($230.4 million) on June 10 entered into a new definitive merger agreement to merge with and into Moorefield, W.Va.-based Summit Financial Group Inc. ($1.47 billion).
The companies had entered into a definitive merger agreement April 12, 2007, but Summit exercised its right to terminate the agreement April 4.
Greater Atlantic Financial consented to the issuance of a cease and desist order from the OTS on April 25, which required to company to immediately cease originating commercial real estate loans, commercial loans and raw land loans without the prior written approval of the Southeast regional director of the OTS and to cease accepting brokered deposits. Greater Atlantic Financial was also to provide ongoing reports to the regulator regarding the status of ongoing negotiations with Summit and to reach and maintain certain capital ratios.
Under the terms of the new agreement, shareholders of Greater Atlantic Financial will receive the...