Plug Pulled on First Internet Merger Deal
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A planned $80 million merger of Fishers-based First Internet Bancorp (Nasdaq: INBK) and First Century Bancorp in Georgia will not proceed. The Hamilton County financial institution says First Century terminated the agreement that was first announced in November.
The merger had an April 30 deadline. The Federal Reserve Board of Governors approved the deal on April 29, but the banks could not close the deal until statutory waiting periods had ended.
First Internet says the two parties were unable to come to terms for an extension.
“Despite efforts to negotiate, we could not arrive at a mutually agreeable increased purchase price in exchange for an extension,” said David Becker, chief executive officer and chairman of First Internet Bancorp. “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 says while this deal did not work out, First Internet continues to explore strategic opportunities to grow.