CITBA Financial (CBAF) in Mooresville, Ind., has terminated its proposed merger with Merchants Bancorp in Carmel.

The $378 million-asset CITBA said in a press release Wednesday that it decided to terminate the deal because of delays obtaining regulatory approval. Those delays "pushed the expected closing date beyond the outside date specified by the merger agreement," Lynn Gordon, CITBA's president and chief executive, said in the release.

The decision to terminate the deal "had nothing to do with any regulatory concern" about the companies' earnings, asset quality or financial condition or "with the merger transaction itself," Gordon said.

CITBA announced in May that it had agreed to merge with the $1 billion-asset Merchants. Even though CITBA was to be the surviving corporation, it planned to take Merchants' name. In addition, Merchants' shareholders were to end up with an 80% stake in the surviving entity.

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