Two more banks are seeking to deregister their common stock following the passage of the Jumpstart Our Business Startups Act, citing potential savings on compliance costs.
Bank of Napa in California and Britton & Koontz Capital (BKBK) in Natchez, Miss., said they should be able to reduce accounting, legal and administrative costs by deregistering with the Securities and Exchange Commission.
Dozens of bank have said they would stop filing financial reports with the SEC since the JOBS Act was signed into law in early April. Banks can deregister if they have fewer than 1,200 shareholders, compared with 300 before the law went into effect.
The $137 million-asset Bank of Napa said Tuesday that it expects to deregister its shares later this quarter and the $356 million-asset Britton & Koontz said last week that its delisting should take place later this month as it had already notified the Nasdaq of its plans.
The stock for both banks would then be traded over the counter.