MVB Financial Corp. in West Virginia and Integrated Financial Holdings Inc. in North Carolina have terminated their merger, the companies announced Tuesday.
The termination, credited to regulatory delays and changing market conditions, was approved by the boards of directors at both companies. Neither company will incur fees over the termination.
“Due primarily to the changes that have occurred in the banking industry since the announcement of the transaction, the termination of the merger agreement with IFHI is the right decision at this time for the shareholders of both companies,” said MVB CEO Larry Mazza.
“MVB will continue our working relationship with Windsor Advantage, IFHI’s wholly owned subsidiary providing comprehensive SBA 7(a) and USDA lending services to community banks,” Mazza said. “MVB’s diversified business model keeps our balance sheet strong through changing marketing conditions.”
IFHI CEO Marc McConnell didn’t name names when addressing recent developments in the banking industry, but, he said “the last 90-120 days have certainly demonstrated the interconnectedness of our financial system and the dynamic environment in which banks operate.”
McConnell said he expects to continue to do business with the MVB team, despite the termination of the merger, adding that IFHI is in a good position to move ahead on its own.
“During the pendency of the merger, 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,” he said.
The failed merger, announced in August, was supposed to be a “fast track growth vehicle” for MVB, which would have benefited from acquiring Integrated Financial’s deep government guaranteed lending business.
IFHI’s CEO at the time the merger was proposed, Eric Bergevin, died in a small plane crash in January in Suffolk, Virginia. McConnell, who took the reins upon Bergevin’s passing, called his death “an unfathomable loss.”
Had he not passed, and had the deal gone through, Bergevin was to join MVB’s executive leadership team.