Short Hills, N.J.-based Investors Bancorp Inc. and Princeton, N.J.-based Bank of Princeton have mutually agreed to terminate their pending transaction.

The cash-and-stock deal, announced May 3, 2016, was initially valued around $154 million.

According to a Jan. 24 news release, the two banks concluded that the FDIC would not approve Investors Bank's application regarding the deal before the March 31 termination deadline.

Each company will shoulder its own costs and expenses related to the termination, and both agreed to release the other from any claims of liability.

In the past, proposed merger talks leading to the deal also saw terminations and the reopening of discussions.

Investors Bancorp had $22.54 billion in assets as of Sept. 30, while Bank of Princeton had $1.01 billion in assets.