CLEVELAND, May 12 /PRNewswire/ -- 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."
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