Merger with Randolph Bank & Trust Company
MOCKSVILLE, N.C., Nov. 14 /PRNewswire-FirstCall/ -- Bank of the Carolinas
Corporation ("BOCC") (Nasdaq: BCAR) reported today that its subsidiary, Bank
of the Carolinas, and Randolph Bank & Trust Company ("Randolph"), each has
chosen to terminate their merger agreement dated April 12, 2007, after
Randolph's shareholders did not approve the merger at Randolph's meeting of
shareholders. The holders of over 60% of Randolph's outstanding shares voted
in favor of the merger, but the merger did not receive the favorable vote of
the holders of two-thirds of the outstanding shares as required by North
Carolina banking law. BOCC's shareholders previously had approved the merger.
As a result of termination of the merger, expenses incurred in connection
with the transaction will be charged against BOCC's earnings during the fourth
quarter of 2007. After adjustment for taxes, BOCC currently expects that
charge to reduce its consolidated earnings for the fourth quarter by
approximately $430,000, or $0.11 per diluted share.
BOCC is the holding company for Bank of the Carolinas, a state chartered
bank headquartered in Mocksville, North Carolina, with offices in Advance,
Asheboro, Cleveland, Concord, Harrisburg, King, Landis, Lexington and Winston-Salem. BOCC's common stock is traded on The NASDAQ Capital Market under the
This press release contains forward-looking statements as defined by
federal securities laws. These statements may address issues that involve
significant risks, uncertainties, estimates and assumptions made by
management. Actual results could differ materially from current projections.
BOCC undertakes no obligation to revise these statements following the date of
this press release.
For further information contact:
Eric E. Rhodes
Chief Financial Officer
Bank of the Carolinas
SOURCE Bank of the Carolinas Corporation
Eric E. Rhodes, Chief Financial Officer, Bank of the Carolinas, +1-336-751-5755
-0- Nov/14/2007 17:57 GMT
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