The acquisition of a small Dallas-area bank has been called off because the buyer was unable to raise enough capital to complete the deal.
The Bank Arlington in Texas sent a letter to shareholders earlier this month to inform them that the deal to be acquired by TAB Capital Corp., in Dallas, had expired. In the letter, the company blamed the buyer's "lack of success" in raising money for the deal's demise.
TAB was formed in August 2010 for the purpose of acquiring a bank in the Dallas-Forth Worth market. In April it announced that it intended to acquire The Bank Arlington, which has $41 million of assets and one branch in Arlington. TAB said when it announced the deal that it planned to add a branch in Dallas.
In the Sept. 14 letter to shareholders, Billy Allen, president and chairman of The Bank Arlington, said the deal would would have provided the five-year-old bank with the capital to grow while also giving its initial shareholders a return on their investment.
The Bank Arlington reported a profit of $99,000 for the first half of 2011 and at June 30 it had a total risk-based capital ratio of 20.98%.