First Sound Bank Announces Termination of BMTX Merger

Rhea-AI Summary

First Sound Bank (OTC Pink: FSWA) announced the termination of its merger agreement with BM Technologies, Inc. on December 23, 2022. The decision reflects the Bank's commitment to maintaining its status as an independent community bank focused on serving small businesses, high net worth individuals, and non-profit entities in King, Pierce, and Snohomish Counties. President and CEO Marty Steele emphasized that the protracted regulatory approval process prompted a reassessment of the Bank's strategy, ultimately leading to a focus on growing profitability and maximizing stakeholder value.

Positive

• Continued independence allows First Sound Bank to focus on personalized banking services.
• The decision to terminate the merger may lead to increased profitability by avoiding the complexities associated with merging with a fintech company.

Negative

• Termination of the merger may signal challenges in integrating with fintech, affecting future growth prospects.

SEATTLE, Dec. 23, 2022 /PRNewswire/ -- First Sound Bank (OTC Pink: FSWA) ("the Bank", "we" or "our") today announced that it has reached a mutual agreement with BM Technologies, Inc. ("BMTX") to terminate our previously-announced merger agreement. The Bank will continue to do business as a locally owned, independent community bank, providing commercial and private banking services to our target customer base consisting of small businesses, high net worth individuals, professional service firms, and non-profit entities. Our target market will continue to be King, Pierce, and Snohomish Counties. 

Commenting on this decision, Marty Steele, President & CEO of the Bank, said "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 non-traditional nature: trying to merge a regulated bank with a fintech company. 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. 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."  

About First Sound Bank

Seattle-based First Sound Bank offers customized banking for small- to medium-sized businesses, not-for-profits organizations, and professionals in the Puget Sound region. The bank is committed to delivering personalized service, convenient access, and competitive rates to support the needs of the business community. First Sound Bank offers online banking at www.firstsoundbank.com and an expansive array of cash management services, as well as ATM banking throughout the country and abroad.

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SOURCE First Sound Bank

FAQ

What prompted First Sound Bank to terminate the merger with BM Technologies?

The merger was terminated due to a prolonged regulatory approval process and a strategic reassessment by the Bank's management.

What is the focus of First Sound Bank after canceling the merger?

First Sound Bank is focusing on maintaining its independence and enhancing profitability while serving small businesses and high net worth individuals in its target counties.

How will the termination of the merger impact First Sound Bank's operations?

The Bank aims to leverage its independence to grow its services and profitability, specifically in King, Pierce, and Snohomish Counties.

What date was the merger termination announced?

The merger termination was announced on December 23, 2022.