CMS Bancorp (Nasdaq: CMSB) in White Plains, N.Y., plans to terminate its sale to Customers Bancorp (CUBI) in Wyomissing, Pa.
The $258 million-asset CMS said late Friday that it had decided against extending the Dec. 31 termination date for its $21 million sale to Customers. CMS said it understood that the $3.9 billion-asset Customers "will not satisfy" conditions that would have allowed Customers to extend the deadline to the end of March.
CMS said its board decided against another extension "due to the continued delay and uncertainty in the timing" of regulatory approvals. CMS also said Customers owes it a $1 million termination fee.
"The CMS board is disappointed that the proposed merger will not proceed," John Ritacco (pictured), president and chief executive of CMS. "However, the board is confident that the decision to not further extend the merger agreement at this time is the right decision for our shareholders, customers, and employees."
Customers has now had two potential acquisitions terminated. In April, Customers terminated its agreement to buy Acacia Federal Savings Bank in Falls Church, Va.