After more than a year of working through the regulatory and financial hurdles, Atlantic Bay Mortgage Group and Virginia Community Bank announced this week that they are abandoning their plan to merge.
According to the companies, the move to give up on the pending merger was a mutual one. The companies said this week that they are withdrawing their merger applications from the Federal Deposit Insurance Corporation and Virginia Bureau of Financial Institutions and plan to move forward as separate entities.
The companies announced their plans to merge over a year ago, but the companies said that the timeframe to complete the merger “remains unclear.”
And due to the “unclear” timeline, the companies say they both believe that it is in the best interest of each company to no longer pursue the merger.
“Atlantic Bay and Virginia Community Bank feel that it is best for their respective shareholders, employees, and clients to move forward separately so that they can focus on the successes that have been impactful in their respective communities,” the companies said in a release.
According to the companies, Virginia Community Bank plans to continue its partnership with Atlantic Bay, and plans to use its mortgage lending and operational support through Atlantic Bay’s DBA Lender Select Mortgage Group.
Atlantic Bay is s a privately owned mortgage lender that is based in Virginia Beach, Virginia, is licensed in 26 states, has branches in nine states, and has nearly 900 employees.
“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.
“Our associates, our customers, and our communities are what make Atlantic Bay what it is,” Holland added. “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.”