SUBSEQUENT EVENTS

9 Months Ended

Sep. 30, 2016

Subsequent Events

Subsequent Events

(10)Subsequent Events

On October 6, 2016, the Company announced that Salem Five Bancorp, parent of Salem Five Cents Savings Bank and the Company had signed a definitive agreement whereby Salem Five Bancorp has agreed to acquire the Company and the Bank, in an all cash transaction valued at approximately $49.2 million. Under the terms of the agreement, shareholders of the Company will receive $26.00 in cash in exchange for each share of Company common stock.

The respective boards of each parent company have unanimously approved the transaction.  The transaction is subject to receipt of state and federal regulatory approvals and approval by shareholders of the Company and is expected to close in the first quarter of 2017. 

The definitive agreement provides for a termination fee of $2.0 million that would be payable to Salem Five Bancorp by the Company under certain circumstances, which are described in detail in the definitive agreement.