Huntingdon Valley Bank in Huntingdon Valley, Pa., and Victory Bank in Limerick, Pa., have called off a planned merger of equals.
The banks said in a press release Friday that they terminated the deal after the Federal Deposit Insurance Corp. indicated that it would not accept an updated merger application. The FDIC had already raised concerns about mutual conversion and mergers during the application's initial review.
The $167 million-asset Huntingdon Valley had planned to convert to a stock institution in conjunction with the merger.
"No concerns about the safety and soundness of either bank or about the business merits of the proposed merger were ever raised by the FDIC during its review," Joseph Major, the $153 million-asset Victory's chairman, said in the release.
The merger "was designed to combine two banking companies of similar size in the same county with complementary business offerings and also raise a significant amount of new capital," Major added. "However, it appears that conversion/mergers are still problematic."
Huntingdon Valley was advised by Griffin Financial Group and Jones Walker. Victory was advised by The Kafafian Group and Kilpatrick Townsend & Stockton.