Bank of the Carolinas Corp. in Mocksville, N.C., will be delisted from the Nasdaq after failing to maintain a market value of publicly traded shares of at least $5 million.
The $486 million-asset company said in a news release on Wednesday that it had chosen not to appeal the decision because of the "management time and expense involved in pursuing an appeal." The bank's market value of publicly traded shares totaled roughly $1.5 million on Thursday.
Trading will be suspended on March 5, at which point the company's stock will move to the OTC Pink market. It said that it will pursue being listed on the OTC Bulletin Board. Bank of the Carolinas lost $29.2 million last year amid a spike in problem loans and mounting costs related to foreclosed real estate. The company has lost more than $40 million since 2008.
In September, the company entered into an agreement with the Federal Reserve in which it said it would serve as a source for strength for its ailing banking unit, which has been operating under a consent order from state and federal regulators since April.
The company's stock was trading at 38 cents on Thursday afternoon, down more than 16% from Wednesday's closing price.