Bonifay Holding Company and its subsidiary, collectively referred to as The Bank of Bonifay, have terminated their agreement with Protective Life under which Protective would acquire The Bank of Bonifay.
Protective noted that the agreement gave either party the option of terminating the agreement if the acquisition was not completed by March 31, 2009, and The Bank of Bonifay elected to exercise this right of termination.
One of the conditions of closing Protective’s acquisition of The Bank of Bonifay was the receipt by Protective of approval from the US Treasury Department to participate in the capital purchase programme (CPP) on terms acceptable to Protective.
Protective said that the Treasury Department has not yet acted on any pending insurer applications for participation in its CPP and has not specified a timetable for such action. Protective understands that in light of this uncertainty, The Bank of Bonifay determined that termination of the agreement was in its best interest. Under current guidance from the Treasury Department, a life insurance company participating in the CPP must own a bank or thrift. Protective does not own a bank or thrift and does not have a current plan to acquire one.
