First Defiance, First Community Terminate Ohio Merger

First Defiance Financial (FDEF) in Defiance, Ohio, isn't going to buy First Community Bank in Columbus, Ohio, after all.

The companies said in a short press release Monday that they jointly agreed to terminate the merger after they realized it would take "significantly longer than expected" to complete the transaction. Cancelling plans to merger "was in the best interest of all parties," the release added.

Several banks have called off mergers in recent months after getting frustrated with lengthy waits for regulatory approval, though First Defiance and First Community did not provide specific details on what would have delayed their deal.

First Defiance agreed in February to buy the $101.4 million-asset First Community for $12.9 million in cash in a deal it expected to close in the third quarter. It would have marked the $2.1 billion-asset First Defiance's entrance into Columbus.

First Defiance said in a separate press release that the termination cost it $511,000, after taxes. The company said it remains interested in expanding its business in adjacent markets and "will explore mergers or acquisitions that meet its criteria."