Regulatory approval proved to be a roadblock for the deal
The merger between privately owned national mortgage lender Atlantic Bay Mortgage Group and Virginia Community Bank will no longer push through as the transaction stalled pending regulatory approvals.
The companies have mutually decided to withdraw their merger application from consideration by the Federal Deposit Insurance Corporation and Virginia Bureau of Financial Institutions.
Atlantic Bay and Virginia Community announced the deal in July 2017, expecting to close in the fourth quarter of that year. However, Atlantic Bay said that despite more than a year passing since the start of the process, the timeframe in which the companies expect to complete the deal remains unclear.
As a result, the companies now think it is no longer in the best interest of their organizations to continue the process. Atlantic Bay and Virginia Community Bank said it is best for their respective shareholders, employees, and clients to move forward separately so that they can focus on their respective businesses.
"While this process has been an arduous one, we certainly value the relationships we have built with Virginia Community Bank through this process," Atlantic Bay CEO Brian Holland said.
Virginia Community Bank plans to continue its partnership with Atlantic Bay by utilizing mortgage lending and operational support through its Richmond, Va.-based DBA Lender Select Mortgage Group.
"Our associates, our customers, and our communities are what make Atlantic Bay what it is," Holland said. "It is what we founded our company on, what has created our success, and why we are so excited to get back to focusing on exactly that."
