This will be a jolt to Georgia banking this morning.
Arkansas-based Bank of the Ozarks announced Monday it plans to acquire the holding company of Georgia’s Community & Southern Bank for $800 million. It’ll be a marriage of two companies that rolled up a bunch of failed and struggling Georgia banks following the economic collapse.
Community & Southern, founded by former bank regulator Pat Frawley, acquired 14 institutions or major pieces of other banks since its founding in 2010. It’s business model, at least early on, was to use its war chest of investor capital to acquire failed banks from the Federal Deposit Insurance Corp. and work out the problem loans, often under what’s called a loss-share agreement with the regulator.
Since then, the company has also acquired branches from healthy institutions.
Bank of the Ozarks did much the same here, entering the Georgia market through failed bank deals. The combined company will have 75 offices in Georgia, a news release said.
“Our teammates have worked incredibly hard over the past six years building a quality franchise, and I am very proud of them,” Frawley said in a news release. “As a result of this transaction, our shareholders will be rewarded, and our employees, customers and communities will have enhanced opportunities available to them by being associated with the highest performing community bank in the United States. We are extremely optimistic about our future prospects and are eager to get underway with our new partner.”
Read more about this deal later today at MyAJC.com and in the print edition of The Atlanta Journal-Constitution.