C1 drew interest, concern

A recent securities filing shows there was substantial interest when C1 Financial informed rivals it was for sale — but just two entities ended up bidding on the St. Petersburg-based parent of C1 Bank.

The documents also show some possible buyers could have been scared off by a number of factors. Those range from doubt on if and how the bank's recent loan growth could continue to concern that C1 President and CEO Trevor Burgess is too much of a solo executive.

Bank of the Ozarks announced in November it would acquire C1 for $403 million. The sale at two-times-book-value is one of the richest in recent years, comparable bank sales data from SNL Financial shows.

C1's board hired investment-banking firm Sandler O'Neill in August to shop the bank to prospective buyers. Sandler O'Neill executives held preliminary discussions with 35 potential acquirers, documents filed with the Securities and Exchange Commission show.

“Discussions with potential counterparties ranged from general exploratory discussions to more detailed discussions and management presentations regarding a potential business combination,” says a proxy statement filed by Bank of the Ozarks detailing the history of the transaction.

Nine banks, including Bank of the Ozarks, entered into confidentiality agreements with C1. The proxy doesn't identify the other banks.

In September, C1 asked the nine prospective buyers to submit written offers to acquire the bank. That whittled the number of banks to two: Bank of the Ozarks and one other undisclosed bank.

“None of the other financial institutions that C1 and Sandler O'Neill had contacted submitted a written expression of interest on Sept. 23 or thereafter. The reasons such institutions provided for not being interested in continuing discussions or making a proposal included concern whether historic loan growth could be replicated or expanded, concern that a market premium could not be offered, concern about geographic fit and concern that [C1 President and CEO Trevor] Burgess was a 'one-man show,'” the proxy says.

The deal with Bank of the Ozarks could be completed later this year.