the-bank-accountOn April 11, 2017, Bank of the Ozarks announced that it would be completing an internal corporate reorganization to eliminate its holding company.  As a result, it will continue as a publicly-traded, stand-alone depository bank, without a bank holding company.

In this episode of The Bank Account, Jonathan and I discuss the advantages and disadvantages of the bank holding company structure.  Specific topics include:

  • praise for Bank of the Ozarks innovative approach to further improve its already impressive efficiency,
  • a review of the existing landscape of holding company and non-holding company structures,
  • activities that may require a holding company,
  • size-related thresholds impacting holding company analysis,
  • charter and corporate-governance related elements to the analysis, and
  • the impact the absence of a holding company may have on merger and acquisition activity.

Following the Bank of the Ozarks reorganization, the five largest U.S. banks without holding companies would be:

  • First Republic Bank – San Francisco, CA – $73 billion
  • Signature Bank – New York, NY – $39 billion
  • Bank of the Ozarks – Little Rock, AR – $19 billion
  • TowneBank – Portsmouth, VA – $8 billion
  • Opus Bank – Irvine, CA – $8 billion

 

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