Offer to purchase Decatur State Bank is withdrawn

DECATUR — The proposed sale of troubled Decatur State Bank to Mathias Bancshares, Inc., of Springdale has been withdrawn, according to the Federal Reserve Bank of St. Louis.

Mathias, which owns First State Bank of Northwest Arkansas in Huntsville, withdrew its offer to buy Decatur State Bank on Aug. 20. No reasonwas given for the withdrawal.

Decatur State Bank is one of the most financially troubled banks in the state. With only $134 million in assets, the bank has lost $3.1 million through the first six months of the year, the biggest loss of any bank in the state. It lost almost $13 million last year.

Decatur State Bank also has been under a sanction from the Federal Deposit Insurance Corp. since November.