First Sound Bank in Seattle said Friday its sale to BM Technologies had been nixed.
In a press release Friday, Marty Steele, president and CEO of the $161 million-asset First Sound, suggested the delays were tied to the bank's decision to sell itself to a financial technology company. The decision was mutual, First Sound's release said.
Radnor, Pennsylvania-based BM Technologies, the former unit of Customers Bancorp known for disbursing financial aid to college students,
"When we announced this proposed merger in November of last year, we knew that the regulatory approval process was likely going to be lengthy because of its nontraditional nature: trying to merge a regulated bank with a fintech company," Steele said in the release.
"As it turned out, the regulatory approval process was in fact prolonged, which gave us an opportunity to reflect on our broad strategy of maximizing the value of the bank to all of our stakeholders — our shareholders, customers, employees, business partners and regulators," he added. "Our board and senior management team now believe that continuing to grow the bank and continuing to increase its profitability is our best course of action."
First Sound is an independent community bank with one branch in downtown Seattle. It provides commercial and private banking services to small businesses and midsize companies in the Puget Sound region.
BM Technologies did not immediately comment Friday. The company was formed after BankMobile was