On 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