The Bank of Salem announced Nov. 5 that Twin Lakes Bancshares of Flippin has terminated its buy-out of the bank.
Twin Lakes Bancshares had entered into an agreement with the Bank of Salem's shareholders. The agreement would have transferred ownership of the bank to Twin Lakes Community Bank. "The transaction was scheduled to close on or before Oct. 31, 2008," according to the press release.
The sale of the Bank of Salem was terminated when Twin Lakes Bancshares withdrew its applications for approval with the state and federal banking authorities. According to the press release, "The Bank of Salem was informed by Judy Loving, chairman of Twin Lakes Community Bank, that Twin Lakes withdrew the applications after the banking authorities determined that Twin Lakes' proposals would have insufficient capital after the merger."
The proposed merger would have allowed the banks to have over $150 million in assets. However, Twin Lakes Community Bank has assets of $40 million, while the Bank of Salem has $121 million in assets.
"While we believe the Twin Lakes merger would have provided certain benefits for our north Arkansas customers, Bank of Salem will remain focused on meeting the needs of our customers as we have for the past 100 years and continue to be a well capitalized and profitable financial institution. The recent financial turmoil has had little effect on our operations and we continue to serve our loan and deposit customers," Bank of Salem President Mark Montgomery, said.