Banking

First Sound Bank in Seattle states its sale to BM Technologies is canceled

First Sound Bank in Seattle stated Friday its sale to BM Technologies had actually been nixed.

The $23 million offer, revealed in November 2021 and initially anticipated to close in the 2nd half of this year, was cancelled amidst regulative hold-ups. The business in November had actually divulged they required to resubmit a merger application to deal with a series of concerns from regulators.

In a news release Friday, Marty Steele, president and CEO of the $161 million-asset First Sound, recommended the hold-ups were connected to the bank’s choice to offer itself to a monetary innovation business. The choice was shared, First Sound’s release stated.

Radnor, Pennsylvania-based BM Technologies, the previous system of Customers Bancorp understood for paying out financial assistance to university student, went public in 2021 and looked for to purchase a bank to match the business’s existing fee-based service lines with credit items that create interest earnings.

“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 stated 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 included. “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 neighborhood bank with one branch in downtown Seattle. It offers industrial and personal banking services to small companies and midsize business in the Puget Sound area.

BM Technologies did not instantly comment Friday. The business was formed after BankMobile was spun off from the $20 billion-asset Customers in Wyomissing, Pennsylvania. It then entered into a special-purpose acquisition business called Megalith Financial Acquisition Corp. Last year, BankMobile went public through a merger with Megalith and produced BM Technologies.

Gabriel

A news media journalist always on the go, I've been published in major publications including VICE, The Atlantic, and TIME.

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