Business
Bank OZK Announces Sale of its Alabama Branches
LITTLE ROCK, Ark., July 01, 2020 (GLOBE NEWSWIRE) -- Bank OZK (the “Bank”) (Nasdaq: OZK) today announced that it has entered into two separate Purchase and
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[{"type":"text","content":"LITTLE ROCK, Ark., July 01, 2020 (GLOBE NEWSWIRE) -- Bank OZK (the “Bank”) (Nasdaq: OZK) today announced that it has entered into two separate Purchase and Assumption Agreements to sell its only two Alabama branches. The Bank has agreed to sell its Mobile, Alabama branch (“Mobile Branch”) to Merchants & Marine Bank (“M&M”), a wholly owned subsidiary of Merchants & Marine Bancorp, Inc. headquartered in Pascagoula, Mississippi. The Bank has agreed to sell its Geneva, Alabama branch (“Geneva Branch”) to 22nd State Bank (“22nd State”), a wholly owned subsidiary of FEB Bancshares, Inc., headquartered in south Alabama.\n Pursuant to the terms of the Purchase and Assumption Agreements, M&M and 22nd State have agreed to assume certain deposit liabilities and to acquire certain loans, as well as cash, real property, personal property and other fixed assets associated with the Mobile Branch and Geneva Branch, respectively. Subject to obtaining the necessary regulatory approvals, the pending sales are expected to close in the fourth quarter of 2020 and should result in small gains on sale. Customers of these branches will receive additional information regarding the impact of the sales in the near future. The deposit and loan balances at the Mobile Branch as of March 31, 2020 were approximately $26 million and $23 million, respectively. The deposit and loan balances at the Geneva Branch as of March 31, 2020 were approximately $66 million and $8 million, respectively. The Bank has found it difficult to operate efficiently within Alabama with just two branches that are in separate markets. After the transactions close, the Bank will have no branch offices in the state of Alabama. DD&F Consulting Group served as financial advisor to the Bank in the transactions. ProBank Austin served as financial advisor and Bass, Berry & Sims PLC served as legal advisor to M&M in the Mobile Branch transaction. Olson Palmer LLC served as financial advisor and Jones Walker LLP served as legal advisor to 22nd State in the Geneva Branch transaction. About Bank OZK Bank OZK (Nasdaq: OZK) is a regional bank providing innovative financial solutions delivered by expert bankers with a relentless pursuit of excellence. Bank OZK is the #1 capitalized bank among the nation’s top 100 U.S. publicly traded banks based on asset size and Tier 1 Leverage Capital Ratio as of M...