BMTX - BM Technologies terminates partnership with First Sound Bank and authorizes $10M buyback

• BM Technologies ( NYSE: BMTX ) and First Sound Bank ( OTCPK:FSWA ) have reached a mutual decision not to move forward with the previously announced merger.
• The company will focus near-term strategy on a sponsor bank model.
• Also, the company's Board of Directors has authorized the repurchase of up to $10M of shares and warrants.
• BMTX recently signed a letter of intent with a new sponsor bank and is working towards a transfer of deposits to the new sponsor bank in the first half of 2023.
• Luvleen Sidhu, Founder, Chair and CEO commented, "The prolonged regulatory approval process provided us the opportunity to reflect on our broader strategy to maximize the value of BMTX-serviced deposits in the context of an evolving macro environment. Interest rates and their outlook are materially higher today than last year when the merger was announced. In this environment, we believe BMTX is better situated as a FinTech with a sponsor bank without the capital needs and credit risk that an on-balance sheet strategy would entail. We believe this is in the best long-term interest of our shareholders. We are working towards a new sponsor bank agreement with variable pricing and improved economics."
• The stock up 2.2% .

For further details see: