Summit Financial Group, Inc. has mutually agreed to terminate the Agreement and Plan of Reorganization by and between Summit and Greater Atlantic Financial Corp.

Greater Atlantic is the holding company for Greater Atlantic Bank, a federally-chartered savings bank. The firm offers traditional banking services to customers through its bank branches located throughout the greater Washington, DC metropolitan area. The company had approximately $219 million in assets on June 30, 2008.

Both companies entered an agreement on June 9, 2008, under which Summit was to acquire Greater Atlantic.

Pursuant to the Termination Agreement, neither party shall have any liability or further obligation to any other party under the Merger Agreement.

The parties mutually agreed to terminate the Agreement because one or more conditions to closing could not be met prior to December 31, 2008, the date on which either party could exercise the right to terminate.

Summit Financial Group, Inc., a financial holding company with total assets of $1.6 billion, operates fifteen banking locations through its wholly-owned community bank, Summit Community Bank, headquartered in Moorefield, West Virginia.

The stock of the Summit Financial ended the day at $8.80 on Nasdaq. It touched an intraday high and low of $8.80 and $8.02 respectively.