Northwest Bancshares Inc. (NWBI), the holding company for Northwest Savings Bank, Monday said its agreement to buy NexTier Inc., the holding company for NexTier Bank, has been terminated. The company said that the termination was based on the expectation that the merger would not receive required approval from the Federal Deposit Insurance Corporation, Northwest Savings Bank's primary federal regulator.
The FDIC criticized various components of Northwest Savings Bank's consumer compliance program. Northwest Savings Bank said it is taking steps to promptly address the issues identified by the FDIC.
In was on May 5 that Northwest Bancshares announced it has reached a definitive agreement to acquire NexTier, Inc. and NexTier Bank. Under the terms of the agreement, the shareholders of NexTier, Inc. would have receive $200 in cash for each outstanding share of common stock of NexTier, resulting in a cash payment by Northwest of approximately $20.3 million.
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