Written by The Business Journal Staff
The two banks have had to extend their merger agreement several times since Security First Bank shareholders approved it in May 2015.
The termination stems from an expense reimbursement contingency in the most recent merger agreement that was not satisfied.
A part of the most recent merger agreement extension, SunPac was to reimburse Security First Bank $150,000 in merger-related costs, in addition to $250,000 received from SunPac in February. That was to cover all of Security First Bank’s merger costs through July 15, which was also the date of the latest extension.
“Security First Bank will continue conducting business as an independent community bank, serving its Fresno market as it has since the bank was founded in 2007,” according to a news release from Security First Bank. “CEO Steve Jones spoke to employees on June 6th about the decision to terminate the merger agreement, reaffirming Security First Bank’s commitment to its customers, its employees, and its community, a commitment to providing superior banking products and services at competitive rates while maintaining personal banking relationships.”