During the first quarter, Cornerstone Financial Services Inc. President Lorraine Brisell and members of the firm's board of directors engaged in preliminary discussions with a competitor regarding a potential merger.
Later that quarter, Brisell and Chairman Ronald Spencer engaged in similar discussions with Summit Financial Group Inc. CEO and President H. Charles Maddy III and CFO Robert Tissue.
West Union, W.Va.-based Cornerstone entered into nondisclosure agreements with both firms in April.
The deal process continued, with each suitor eventually delivering indications of interest for the potential acquisition of Cornerstone in early August.
The Cornerstone board considered the terms of each proposal Aug. 15. It authorized Brisell to execute and deliver the indication of interest provided by Moorefield, W.Va.-based Summit, which included a 30-day exclusivity period for Summit and Cornerstone to pursue the completion of definitive agreements with respect to the transaction.
The board also authorized Cornerstone's management to negotiate a definitive agreement with Summit. Later that day, Brisell executed and delivered the indication of interest letter to Summit.
Summit and Cornerstone announced the proposed merger Sept. 17.
