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MVB Financial Corp. (MVBF - Free Report) and Integrated Financial Holdings, Inc. have agreed to terminate their previously announced merger agreement. In August 2022, MVBF agreed to buy Integrated Financial in an all-stock deal worth $98 million.
The termination of the deal, which has been approved by the boards of directors of the companies, will not result in fees to either firm.
Larry F. Mazza, the CEO of MVB Financial, said, “Due primarily to the changes that have occurred in the banking industry since the announcement of the transaction, the termination of the merger agreement with IFHI is the right decision at this time for the shareholders of both companies. MVB will continue our working relationship with Windsor Advantage, IFHI’s wholly owned subsidiary providing comprehensive SBA 7(a) and USDA lending services to community banks.”
Marc McConnell, the chairman and CEO of Integrated Financial, stated, “As with many things, timing plays a crucial factor in business combinations. The last 90-120 days have certainly demonstrated the interconnectedness of our financial system and the dynamic environment in which banks operate. We have appreciated the relationships that we have developed with the MVB team and expect we will continue to do business together.”
Deal Details
At the time of the deal announcement, it was agreed that shareholders of Integrated Financial would receive 1.21 shares of MVBF’s common stock for each of their shares held.
The deal was expected to be immediately accretive to tangible book value per share at closing. Also, it would have been accretive to earnings per share by 15% in 2023.
With the acquisition, MVBF would have been able to expand its government-guaranteed lending business, including SBA and USDA originations and servicing.
Over the past six months, shares of MVBF have lost 29.7% compared with a decline of 14.2% for the industry.
Image Source: Zacks Investment Research
Currently, MVBF carries a Zacks Rank #5 (Strong Sell).
Recently, Washington Federal, Inc. (WAFD - Free Report) and Luther Burbank Corporation’s shareholders approved their merger agreement. The all-stock deal, which was announced in November 2022, is subject to regulatory approvals and customary closing conditions.
Under the terms of the transaction, Luther Burbank shareholders will receive 0.3353 shares of Washington Federal common stock for each share of LBC common stock they hold.
By acquiring Luther Burbank, WAFD will be foraying into the lucrative and “fast-growing” California market. The company intends to enhance multi-family loan origination capabilities and expand commercial banking activities to Northern and Southern California.
However, of late, the U.S. regional banking industry is facing huge turmoil. Since March, there have been four bank failures — Silvergate Capital, Signature Bank, Silicon Valley Bank and First Republic Bank. The collapse of these banks was largely due to the fastest rate hikes since the 1980s and internal risk management issues.
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MVB Financial (MVBF), Integrated Financial Merger Terminated
MVB Financial Corp. (MVBF - Free Report) and Integrated Financial Holdings, Inc. have agreed to terminate their previously announced merger agreement. In August 2022, MVBF agreed to buy Integrated Financial in an all-stock deal worth $98 million.
The termination of the deal, which has been approved by the boards of directors of the companies, will not result in fees to either firm.
Larry F. Mazza, the CEO of MVB Financial, said, “Due primarily to the changes that have occurred in the banking industry since the announcement of the transaction, the termination of the merger agreement with IFHI is the right decision at this time for the shareholders of both companies. MVB will continue our working relationship with Windsor Advantage, IFHI’s wholly owned subsidiary providing comprehensive SBA 7(a) and USDA lending services to community banks.”
Marc McConnell, the chairman and CEO of Integrated Financial, stated, “As with many things, timing plays a crucial factor in business combinations. The last 90-120 days have certainly demonstrated the interconnectedness of our financial system and the dynamic environment in which banks operate. We have appreciated the relationships that we have developed with the MVB team and expect we will continue to do business together.”
Deal Details
At the time of the deal announcement, it was agreed that shareholders of Integrated Financial would receive 1.21 shares of MVBF’s common stock for each of their shares held.
The deal was expected to be immediately accretive to tangible book value per share at closing. Also, it would have been accretive to earnings per share by 15% in 2023.
With the acquisition, MVBF would have been able to expand its government-guaranteed lending business, including SBA and USDA originations and servicing.
Over the past six months, shares of MVBF have lost 29.7% compared with a decline of 14.2% for the industry.
Image Source: Zacks Investment Research
Currently, MVBF carries a Zacks Rank #5 (Strong Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Competitive Landscape
Recently, Washington Federal, Inc. (WAFD - Free Report) and Luther Burbank Corporation’s shareholders approved their merger agreement. The all-stock deal, which was announced in November 2022, is subject to regulatory approvals and customary closing conditions.
Under the terms of the transaction, Luther Burbank shareholders will receive 0.3353 shares of Washington Federal common stock for each share of LBC common stock they hold.
By acquiring Luther Burbank, WAFD will be foraying into the lucrative and “fast-growing” California market. The company intends to enhance multi-family loan origination capabilities and expand commercial banking activities to Northern and Southern California.
However, of late, the U.S. regional banking industry is facing huge turmoil. Since March, there have been four bank failures — Silvergate Capital, Signature Bank, Silicon Valley Bank and First Republic Bank. The collapse of these banks was largely due to the fastest rate hikes since the 1980s and internal risk management issues.