Drummond Banking Company, parent company of Drummond Community Bank and Williston

Holding Company, parent company of Perkins State Bank, jointly announce the signing of a

definitive merger agreement. The merger, expected to be completed during the first quarter of

2013, is subject to customary conditions, including the approval of the Williston shareholders

and bank regulators. Shareholders of Williston will elect to receive Drummond common stock

or cash in exchange for their shares, subject to election and proration procedures. Under terms

of the definitive agreement, the transaction is presently valued at $14.6 million, subject to

adjustment. A portion of the purchase price may be payable after the transaction is completed

based on the disposition of certain assets of Williston and Perkins State Bank.

This combination will create a larger, well-capitalized community bank with a growing market

presence in five counties, including Lafayette County. The combined bank will have assets approaching $400 million, deposits of more than $310 million, and nearly $200 million in loans, with capital and reserves totaling more than $45 million. The merger of Drummond Community Bank and Perkins State Bank, will bring together thousands of depositors and borrowers who prefer community banking. 
Luther Drummond will remain as President and CEO while Frank Etheridge will be serving as Area President of the combined Drummond Community Bank. Both bankers agree this partnership provides a solid foundation to ensure that the advantages of personalized community banking in the hands of capable local owners, remain available to all residents of the five-county region currently served by the banks well into the foreseeable future.

Drummond Community Bank ranks among the best capitalized banks in Florida. Throughout

the past 22 years, the bank has generated its strong capital position with above average

returns. Perkins State Bank, one of the oldest banks in Florida, founded in 1913, is approaching

its 100th anniversary of providing community banking services to Levy and Alachua counties.

“Drummond Community Bank has many things in common with Perkins State Bank,” remarked

Luther Drummond. “We share the same values such as our commitment to superior customer

service and our commitment to the community. We both are dedicated to providing our

customers world-class financial management in a community-bank atmosphere.” 
Drummond added, “We are going to build our combined banks into one of the premiere community banks in Florida.”

Frank Etheridge, President of Perkins State Bank, commented, “The merger of these two sound

community banks will create an enduring banking alliance enabling us to continue our long

standing safe-banking traditions in Williston, Chiefland and in all of the important communities

we serve.” Mr. Etheridge continued, “We are committed to maintaining our strong customer

service brought to you by the people you know.”