(RTTNews) – First Internet Bancorp (INBK), the parent company of First Internet Bank, said that First Century Bancorp. has terminated the agreement and plan of merger between the two companies.
As per the agreement, the consummation of the merger was to have occurred on or before April 30, 2022.
The Board of Governors of the Federal Reserve approved the merger on April 29, 2022, but the parties were precluded from closing immediately thereafter due to statutory waiting periods. The parties were unable to agree on extension terms; First Century terminated the agreement on May 1, 2022.
First Internet Bancorp said it could not arrive at a mutually agreeable increased purchase price in exchange for an extension. It will not support excess deployment of capital without a clear and likely pathway to an acceptable payback. It remains steadfastly committed to increasing shareholder value.
In November 2021, First Internet Bancorp had agreed to acquire First Century Bancorp, the parent company of First Century Bank, N.A. for $80 million in cash.
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