Investors Bancorp in Short Hills, N.J., and Bank of Princeton in New Jersey have terminated their planned merger.
The $22.5 billion-asset Investors had agreed in May to buy the $1 billion-asset Bank of Princeton for $154 million. The deal would have been Investors’ big move into Philadelphia.
The companies said in a press release Tuesday that they were unlikely to receive approval from the Federal Deposit Insurance Corp. before the deal’s March 31 termination date.
Each bank will bear its own costs and expenses in connection with the terminated deal, without penalties.
Investors disclosed in August that it had entered into an informal agreement with the FDIC and the New Jersey Department of Banking and Insurance in connection with Bank Secrecy Act and anti-money-laundering compliance. At that time, Investors said its application to buy Bank of Princeton remained under processing by the FDIC, adding that it hoped to "demonstrate substantial compliance" to get the deal approved.