Proposed Century Bank MergerMonday, May 12, 2008
Liberty Bank announces Mutual Cancellation of Proposed Century Bank Merger
May 12, 2008; Cleveland, Ohio -- Beachwood, Ohio-based Liberty Bank, N.A. announced today that, effective as of April 23, the Boards of Directors of Liberty Bank, N.A. and Parma, Ohio-based Century Bank approved the mutual cancellation of the proposed merger of the two companies.
On November 27, 2007, Century Bank entered into a definitive agreement to merge with Liberty Bank. In conjunction with the proposed merger, the Board of Directors of Century Bank had adopted a plan of conversion to convert from the mutual to stock form of organization.
Unforeseen delays were encountered in the approval of the application for conversion and merger with the regulators, requiring additional expenses to go forward. When combined with current market conditions for financial institution stocks in general, these obstacles increased the risk that significant additional spending would be needed to continue pursuing the transaction.
"We believed that the transaction was in the best interest of all of the constituencies of both parties, however, due to the unforeseen development of additional risks, the parties have mutually agreed to cancel the transaction," stated William A. Valerian, Chairman of the Board, President and CEO of Liberty Bank, N.A. "Our Board and management team look forward to growing the bank and will continue to investigate opportunities to form strategic alliances that will aid in that goal."
During the recent period of turmoil in the banking industry caused by credit quality issues at some of the largest institutions, Liberty Bank has maintained a strong balance sheet with a high quality asset portfolio. Further, Liberty Bank continues to be "well capitalized" according to bank regulatory standards.
About Liberty Bank, N.A.
Liberty Bank, N.A., a nationally chartered commercial bank headquartered in Beachwood, Ohio, was organized in 1990. Liberty Bank is a full-service community national bank with assets of $244 million at December 31, 2007. With offices in Beachwood, Solon and Twinsburg, Ohio, the independently owned bank serves local consumers and privately-held businesses with sales of up to $25 million.