Posted 10/4/2012 04:33 pm
Updated 2 years ago
Bank of the Ozarks Inc. of Little Rock said Thursday that it is purchasing Genala Banc Inc. of Geneva, Ala., in a $27.3 million deal.
Genala is the holding company for The Citizens Bank, which operates one banking office in Geneva. As of June 30, Citizens Bank had about $170 million in total assets, $45 million in loans and $142 million in deposits.
The Citizens Bank opened in Geneva in 1901.
Following closing, the transaction is expected to be accretive to Bank of the Ozarks' book value per common share, tangible book value per common share and diluted earnings per common share.
"The Citizens Bank is a healthy bank with a great history and a solid market share in southeastern Alabama," George Gleason, Bank of the Ozarks' chairman and CEO, said in a news release.
"This acquisition provides us an opportunity to expand our already substantial presence in the Southeast region and provides a nice link between our two offices in Mobile, Alabama and our two offices in Bainbridge, Ga.
"Customers of The Citizens Bank will continue to enjoy local decision making and the same quality of friendly hometown banking to which they have become accustomed, as well as benefitting from an enhanced menu of financial services and technology options," Gleason said.
The deal has been unanimously approved by both companies' boards.
According to the deal, Bank of the Ozarks will issue shares of its common stock valued at about $13.9 million plus about $13.4 million in cash for all outstanding shares of Genala common stock.
At the time of closing, Genala will merge into Bank of the Ozarks, and The Citizens Bank will merge into Bank of the Ozarks. The deal is expected to close in late December or during the first quarter of 2013.