Bank of Salem was organized and incorporated in December 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. Watson.
Since 1908, 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), and Mark H. Montgomery (1994 to 2020). Guy “Buck” Smith serves as the current President and Mike Falco serves as the current Chief Executive Officer.
Smith Associated Banking Corporation (SABCO) of Hot Springs, purchased the bank in 1982. The present Board of Directors include Mark Montgomery (Chairman), Dwayne Plumlee (Secretary), Mike Falco, Guy “Buck” Smith, Jim Short, John Ed Welch, and Karrol Fowlkes.
In 1908 Bank of Salem was located on the north side of the Court Square in the embossed tin front building which later became Short’s Hardware and then Aid True Value. In 1919, Bank of Salem moved to a new native stone structure on the Northeast corner of the Square where Welch, Couch, and Company is presently located. In 1965, Bank of Salem moved to its present location, just off the Court Square on Church Street. In 1982, the bank opened its first branch facility at Viola and in 2004 opened a branch in Mammoth Spring.
Bank of Salem also owns an independent insurance agency, Sabco Insurance Agency. Sabco Insurance is located next door to the bank on Pickren Street. Sabco Insurance President, Terry Harris, is located inside the lobby at the Bank of Salem. Sabco Insurance employees four full-time licensed insurance agents.