Bank of the Ozarks to Buy Bank of the Carolinas in $65M Deal

George Gleason

Bank of the Ozarks Inc. of Little Rock said Wednesday that it has agreed to purchase Bank of the Carolinas Corp. of Mocksville, North Carolina, and its struggling bank subsidiary, Bank of the Carolinas, in an all-stock deal worth about $64.7 million.

The deal, set to close in the third quarter, works out to about 14 cents per share the company, which is traded over-the-counter under the symbol BCAR. It will be Bank of the Ozarks’ 13th acquisition since March 2010.

Bank of the Carolinas operates eight offices in North Carolina between Charlotte and Winston-Salem. At March 31, BCAR had about $363 million in total assets, $279 million in loans and $314 million in deposits. But Bank of the Carolinas has not turned an annual profit since 2007; between 2008 and 2014, it lost more than $46 million, requiring an infusion to bring its capital to $45.3 million as of March 31.

“This acquisition adds eight North Carolina offices, bringing our North Carolina office count to 24,” Bank of the Ozarks’ Chairman and CEO George Gleason said in a news release. “Customers of Bank of the Carolinas will continue to enjoy friendly hometown banking in addition to benefitting from a broader range of financial services.”

Bank of the Ozarks (Nasdaq: OZRK) entered North Carolina with its own office in 2001. It expanded by acquiring Woodlands Bank in 2010 and First National Bank of Shelby in 2013, and by adding its own de novo branches.

“We are confident that the merger with Bank of the Ozarks will be a great fit for our clients, employees and the communities we serve,” Bank of the Carolinas Corp. Board Chairman Harvey Glick said. “Bank of the Ozarks’ larger loan limit and more robust products and services will have an immediate positive impact on our valued clients. We couldn’t have found a better merger partner.”

The deal has already been approved by the boards of directors of both companies. Per the transaction, each common stock shareholder of BCAR will receive shares of common stock of Bank of the Ozarks. The number of OZRK shares will be determined based on the company’s 10-day average closing stock price as of the second business day before to the closing date.