By William Gullotti
Buffalo, N.Y., Nov. 16 – Summit Financial Group, Inc. completed a $75 million private placement of 10-year fixed-to-floating rate subordinated notes, according to a press release on Tuesday.
The notes will bear a fixed interest rate of 3.25% until Dec. 1, 2026, after which they will bear a floating rate equal to SOFR plus 230 basis points that resets quarterly.
The notes will qualify as tier 2 capital.
Summit may redeem the notes at par on any interest payment date beginning Dec. 1, 2026.
Piper Sandler & Co. served as placement agent.
Bowles Rice LLP served as legal counsel to the company, and Troutman Pepper Hamilton Sanders LLP served as legal counsel to the placement agent.
Proceeds will be used for general corporate purposes, which may include common stock repurchases, organic growth and strategic initiatives, such as acquisitions.
Based in Moorefield, W.Va., Summit provides community banking services through its bank subsidiary, Summit Community Bank, Inc.
| Issuer: | Summit Financial Group, Inc.
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| Issue: | Fixed-to-floating rate subordinated notes
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| Amount: | $75 million
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| Maturity: | Sept. 30, 2031
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| Placement agent: | Piper Sandler & Co.
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| Trustee: | UMB Bank, NA
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| Coupon: | Initially 3.25%, payable quarterly; beginning Dec. 1, 2026, SOFR plus 230 bps, resetting quarterly
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| Call option: | At par on any interest payment date beginning Dec. 1, 2026
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| Announcement date: | Nov. 16
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