Just weeks after receiving regulatory approval to merge, the parent company of Patriot Bank and American Challenger Development Corp. have terminated their merger agreement.
Patriot National Bancorp said in a statement yesterday that the companies, both based in Stamford, had mutually determined that they would not be able to satisfy all closing conditions of the merger agreement as it was structured.
“Although the parties remain in active discussions regarding a modified transaction, it is uncertain whether a new agreement can be reached,” Patriot said in the statement.
Patriot Bank has about $925 million in assets and eight branches in Fairfield and New Haven counties, as well as one branch in Scarsdale, New York. American Challenger was formed in January 2020 to establish a new digital bank that would operate nationally.
The merger would have maintained Patriot as a community bank while creating a national digital bank.
Patriot Chairman Michael Carrazza had said in a statement earlier this month that receiving conditional regulatory approval for the deal was a “significant and necessary milestone.”
“We are thrilled to have gained regulatory support for our forward business plan and intentions to create one of the largest digital-forward banks in the country,” Carrazza had said in a July 6 statement.
The companies had announced merger plans in November 2021, originally planning a reverse subsidiary merger. The merger agreement was amended earlier this year to have Patriot as the surviving entity.
The deal had called for Patriot to raise $875 million in capital.
The boards of each company unanimously decided to terminate the merger agreement, Patriot said in yesterday’s statement.
“Pursuant to the parties’ mutual termination and release agreement, the parties have agreed to release each other from any claims relating to or arising out of the Merger Agreement or the transactions contemplated thereby,” the statement said.