First National Bank Northwest Florida no longer pursuing sale to Harvesters CU

First National Bank Northwest Florida has withdrawn its application with the Federal Deposit Insurance Corp. to sell itself to Harvesters CU.

The CEOs of the companies did not immediately respond to a request for comment. However, a source familiar with the matter said Harvesters CU and First National Bank Northwest Florida mutually agreed to terminate their planned merger.

The deal was called off due to the macroeconomic environment, according to the source, specifically the rapid increase in interest rates since the transaction was announced in August 2022. The deal was not cancelled due to regulatory denial, as the companies voluntarily withdrew their plans from regulators, the source said.

The companies originally announced their tie-up plans on Aug. 15, 2022. The two companies were similar in size, as Harvesters CU reported $274.5 million in total assets as of June 30, 2022, while First National Bank Northwest Florida reported $239.4 million as of the same date, according to S&P Global Market Intelligence data.