Bank of Salem was organized and incorporated in November 1908 with
stockholders: B.H. Castleberry, Rex Castleberry, J.L. Short, Harry Pickren,
George T. Humphries, H.J. (Race) Humphries, C.W. Dixon, J.A. Sigler, and J.A.
The first bank was on the north side of the Court Square in the embossed tin
front building where Aid True Value was located for years. In 1919 it moved
to a new native stone structure on the NE corner of the square where Hughes,
Welch, and Milligan is presently located. In 1965 the bank moved to its
third and present location, a new brick veneer building just off the square
on Church Street. The facility was expanded to double its original size in
1976. In 1982, the Bank of Salem opened its first branch facility at Viola,
10 miles west of Salem, to better serve the western part of Fulton County.
In January 2004 the bank opened the Mammoth Spring Bank, a branch of the
Bank of Salem. Bank of Salem also has an insurance company, SABCO Insurance,
which has offices located inside the main bank lobby and on Pickren Street
bank was established with $25,000 in capital, which was later changed to
$20,000 in capital and $5,000 in surplus. In 1950 capital was increased to
$50,000 and in 2007 has increased to over $11 million and asset size has
increased to over $120 million.
In the past 100 years the following people have served as president of the
bank: B.H. Castleberry (1908-1919), George T. Humphries (1920-1921), G.T.
Cunningham (1922-1924), H.A. Northcutt (1924-1927), Rex Castleberry
(1927-1957), Jim Humphries (1957-1982), Frank B. Burge (1982-1992), James
Burns (1992-1993), Mark H. Montgomery (1994 to present). Other stockholders
have included: Fay Castleberry, W.R. Castleberry, Ray Castleberry, H.J.
Humphries, G.A. Edmonston, C.W. Pardue, E.M. Reeves, Lanis Ashley, Cuthbert
Pickren, George Rex Humphries, Corwin Mosey, Mary Linn, Kathryn Cogburn, and
L.R. “Jack” Cochran, The Bank of Salem now has 40 full-time employees and
employs 4 full-time at the SABCO Insurance offices.
Richard T. Smith, Chairman and Chief Executive Officer of Smith Associated
Banking Corporation (SABCO) of Hot Springs, purchased the bank in 1982. The
present directors are: Mark H. Montgomery, C. Dwayne Plumlee, Guy “Buck”
Smith, Jim Short, John Ed Welch and Karrol Fowlkes.