This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

5 Expensive Bank Stocks Still Worth Buying (Update 3)

Stocks in this article: BAC C JPM WFC USB CYN TCBI OZRK INDB

3. Bank of the Ozarks

Shares of Bank of the Ozarks (OZRK) of Little Rock, Ark., closed at $29.23, declining 1% year-to-date. Based on a quarterly payout of 9.5 cents, the shares have a dividend yield of 1.27%.

The bank expanded through three failed-bank purchases from the FDIC during 2011, following four in 2010. The 2011 acquisitions included The Park Avenue Bank of Valdosta, Ga., which had total assets of $953 million when it was shuttered by state regulators last April.

Bank of the Ozarks reported fourth-quarter net income available to common shareholders of $17.6 million, or 51 cents a share, declining from $18.9 million, or 55 cents a share, in the third quarter, but increasing from $16.9 million, or 49 cents a share, a year earlier. The sequential earnings decline reflected an increase in the provision for loan losses to $4.3 million in the fourth quarter, from $1.5 million in the third quarter.

The bank's fourth-quarter net revenue grew 5% from the third quarter and 30% year-over-year, to $31.7 million.

Over the past five quarters, Bank of the Ozarks has seen a major boost in earnings from bargain purchase gains on its failed bank acquisitions, with ROA ranging from 1.75% to 5.23%. The bank was included among TheStreet's 10 Bank Stocks Bringing Home the Bacon in November, as one of the strongest and most consistent earnings among actively traded banks, for the preceding five years.

FIG Partners analyst Brian Martin on Jan. 20 reiterated his "Market Perform" rating on Bank of the Ozarks, "primarily due to valuation," with a $29.50 price target, saying the bank remained "an active bidder and is optimistic more deals are on the horizon and that covered loans will continue to be a key driver of balance sheet growth in 2012."

The shares trade for 2.4 times tangible book value and for 14 times the consensus 2012 EPS estimate of $2.04. The shares are expensive when compared to the many of the largest U.S. banking names, yes, however, the bank's long-term track record speaks for itself.

The shares rose slightly on Wednesday, to close at $29.05.

Interested in more on Bank of the Ozarks? See TheStreet Ratings' report card for this stock.

4 of 6

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,652.44 +295.57 1.70%
S&P 500 2,048.04 +35.15 1.75%
NASDAQ 4,730.8750 +86.5630 1.86%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs