Bank OZK has inked two separate purchase and assumption deals to sell its two branches in Alabama, US.
Financial details of the deal have not been made public.
Under the agreement, the bank agreed to sell its Mobile branch to Merchants & Marine Bank (M&M), a subsidiary of Mississippi-based Merchants & Marine Bancorp.
The bank will also sell its Geneva branch to 22nd State Bank, a subsidiary of South Alabama-based FEB Bancshares.
M&M and 22nd State will assume certain deposit liabilities, loans, as well as cash, real property, personal property and other fixed assets of the Mobile and Geneva Branches, respectively.
The Mobile Branch has nearly $26m in deposits and $23m in loans as of 31 March 2020.
Similarly, the Geneva Branch has recorded $66m in deposits and $8m in loans for the the same period.
The decision to sell both the branches comes as the bank grapples with challenges to effectively operate the branches in separate markets.
Upon transaction completion, Bank OZK will not have any branches in the state of Alabama.
The customers in Alabama will be kept in the loop of this development and the impact of the sales in the near future.
The deals are expected to close in the fourth quarter of 2020, subject to regulatory nod.