First Century Bancorp terminated the agreement and plan merger it had with First Internet Bancorp, the parent company of First Internet Bank. Under the agreement, declared on Nov. 2, 2021, the consummation of the merger was meant to occur 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, leading to First Century’s termination of the agreement.
“Despite efforts to negotiate, we could not arrive at a mutually agreeable increased purchase price in exchange for an extension,” David Becker, CEO and chairman of First Internet Bancorp, said. “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. We remain steadfastly committed to increasing shareholder value.
“I offer heartfelt thanks to the employees of First Century Bank for their openness, hospitality and collaboration throughout the diligence and planning. Finally, I am tremendously proud of the First Internet Bank team that worked tirelessly on the opportunity and integration plan while continuing to serve our customers and enhance our capabilities. It is the unwavering commitment of our team that fuels our confidence in the strength of our franchise and ability to seize potential growth opportunities ahead.”
