Turns out First National Bank of Louisburg won’t be buying two Peoples Bank locations in Ottawa after all.

The two banking companies announced Friday that the pending sale — announced in May — had been canceled.

“Unfortunately, the current economic and regulatory environment is not conducive for us to move forward with this transaction,” said Bob Nauman, president of First National Bank of Louisburg. “Needless to say, we were looking forward to the purchase and we’re disappointed that it did not materialize.”

The two branches will remain Peoples Bank locations, with all the same employees and services. They remain the original two locations owned by Peoples Inc., a Lawrence-based holding company that today has 25 branches in Kansas, Colorado and New Mexico.

“We understand and appreciate FNB-Louisburg’s situation,” said Wint Winter Jr., president and CEO of Peoples Bank. “We’ve served the Ottawa market since 1871 and look forward to continuing.”

Peoples Inc. is controlled by the Winter family and the company’s banks have more than $50 million in capital and about $600 million in assets.

First National Bank of Louisburg, with locations in Louisburg and Stilwell, has more than $16 million in capital and about $82 million in assets.