MVB Financial in Fairmont, W.Va., and Integrated Financial Holdings in Raleigh, N.C., have terminated MVB’s proposed purchase of IFHI.
The $3.6 billion-asset MVB said in a press release that the decision reflected “changing market conditions that have pressured bank industry stock prices” and “understandable delays in regulatory processes.”
Neither company will pay termination fees.
MVB agreed in August to buy the parent of the $404 million-asset West Town Bank & Trust for $98 million.
The termination “is the right decision at this time for the shareholders of both companies,” Larry Mazza, MVB’s CEO, said in the release. He said that MVB will continue to work with Windsor Advantage, an IFHI unit that provides SBA 7(a) and USDA lending services.
“As with many things, timing plays a crucial factor in business combinations,” Marc McConnell, IFHI’s chairman, president and CEO said in the release.
“We have appreciated the relationships that we have developed with the MVB team and expect we will continue to do business together,” McConnell added. “We have right-sized IFHI in a number of respects, and with our strong capital base and improving efficiency, we believe that IFHI is well-positioned to proceed as an independent company.”