PVF Capital Corp. of Solon, Ohio, has called off its planned sale to United Community Financial Corp. in Youngstown.
The cancellation was announced Tuesday, a day after the terms of the agreement gave both companies the option to walk away.
The deal, announced in July, had called for the $2.8 billion-asset United Community to buy the $908 million-asset PVF Capital for $130.8 million in cash and stock.
United is the parent of Home Savings and Loan Co. Buying PVF, the holding company for Park View Federal Savings Bank, would have added 17 branches, mostly in Cleveland, to Home Savings' 38 branches in northern Ohio and western Pennsylvania.
The deal stalled in December when United said the Office of Thrift Supervision was delaying its approval until it completed its examination of Home Federal.
The terms gave either company the right to exit the deal without penalty if it had not closed by March 31. Last week an investor who owns a 5% stake in PVF said he expected the deal to fall through, and he advised its board to either find another acquirer or improve profitability by overhauling its management team and reducing its concentration in mortgages.
PVF shares fell 10.8% Tuesday, to close at $9.71. United's stock rose 9.7%, to $6.80.
