BM Technologies and First Sound Bank in Seattle have terminated their plans to merge.
BM Technologies, a fintech spun off from Customers Bancorp, agreed in November 2021 to buy the $154 million-asset First Sound for $23 million in cash but they were unable to secure the required regulatory approvals.
The fintech said a few weeks ago that it had withdrawn its application to buy First Sound, with plans to resubmit the paperwork in 2023.
“When we announced this proposed merger … we knew that the regulatory approval process was likely going to be lengthy because of its no-traditional nature,” Marty Steele, First Sound’s president and CEO, said in a Friday press release.
“The regulatory approval process was in fact prolonged, which gave us an opportunity to reflect on our broad strategy of maximizing the value of the bank to all of our stakeholders,” Steele added. “Our board and senior management team now believe that continuing to grow the bank and continuing to increase its profitability is our best course of action.”