The $4.2 billion-asset First Internet said in
a press release Sunday that the $408 million-asset First Century called off the
deal. The proposed transaction, announced
on Nov. 2, was supposed to be completed by April 30.
First Internet said that, while the Federal
Reserve approved its purchase of First Century on Friday, the companies were
precluded to closing immediately due to “statutory waiting periods” and were unable to negotiate an extension.
“Despite efforts to negotiate, we could not
arrive at a mutually agreeable increased purchase price in exchange for an
extension,” David Becker, First Internet’s chairman and CEO, said in the
release.
“While the acquisition initially appeared to
provide opportunities to diversify our revenue streams, we will not support
excess deployment of capital without a clear and likely pathway to an
acceptable payback,” Becker added. “Even as we worked diligently on integration
with First Century, we continued to source and evaluate additional strategic
opportunities and have built a pipeline of actionable projects to drive results
higher in future periods.”
First Internet had agreed
to buy the deposit-rich First Century for $80 million in cash. The deal had
priced First Century at 135% of its tangible book value.
First Century is a technology-driven bank that
focuses on payments, tax product lending, sponsored card programs and
homeowners association services.
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