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Bank Of The Ozarks, Inc. Announces First Quarter 2012 Earnings

Stocks in this article: OZRK

GENERAL INFORMATION

Bank of the Ozarks, Inc. common stock trades on the NASDAQ Global Select Market under the symbol “OZRK”. The Company owns a state-chartered subsidiary bank that conducts banking operations through 113 offices, including 66 Arkansas offices, 27 Georgia offices, 12 Texas offices, four Florida offices, two North Carolina offices, and one office each in South Carolina and Alabama. The Company may be contacted at (501) 978-2265 or P. O. Box 8811, Little Rock, Arkansas 72231-8811. The Company’s website is: www.bankozarks.com.

       

Bank of the Ozarks, Inc.

Selected Consolidated Financial Data

(Dollars in Thousands, Except Per Share Amounts)

Unaudited

 
Quarters Ended
March 31,
  2012     2011   % Change  

Income statement data:

Net interest income $ 43,833 $ 36,083 21.5 %
Provision for loan and lease losses 3,076 2,250 36.7
Non-interest income 13,810 12,990 6.3
Non-interest expense 28,607 26,192 9.2
Net income available to common stockholders 18,009 14,630 23.1
 

Common stock data:*

Net income per share – diluted $ 0.52 $ 0.43 20.9 %
Net income per share – basic 0.52 0.43 20.9
Cash dividends per share 0.11 0.085 29.4
Book value per share 12.81 9.79 30.8
Diluted shares outstanding (thousands) 34,826 34,366
End of period shares outstanding (thousands) 34,571 34,196
 

Balance sheet data at period end:

Assets $ 3,837,382 $ 3,326,623 15.4 %
Loans and leases not covered by loss share 1,893,156 1,807,894 4.7
Allowance for loan and lease losses 38,632 39,225 (1.5 )
Loans covered by loss share 755,761 536,748 40.8
Foreclosed assets covered by loss share 71,950 46,132 56.0
FDIC loss share receivable 239,724 200,948 19.3
Investment securities 434,197 390,141 11.3
Goodwill 5,243 5,243 -
Other intangibles – net of amortization 6,455 2,855 126.1
Deposits 2,927,062 2,580,043 13.5
Repurchase agreements with customers 43,686 39,043 11.9
Other borrowings 280,786 282,689 (0.7 )
Subordinated debentures 64,950 64,950 -

Common stockholders’ equity

442,646

334,830

32.2

Net unrealized gains (losses) on investment securities AFS included in common stockholders’ equity

10,565

742

Loan and lease including covered loans to deposit ratio

90.50

%

90.88

%

 

Selected ratios:

Return on average assets** 1.91 % 1.77 %
Return on average common stockholders’ equity** 16.75 18.16
Average common equity to total average assets 11.38 9.74
Net interest margin – FTE** 5.98 5.61
Efficiency ratio 47.73 50.97
Net charge-offs to average loans and leases**(1) 0.44 0.72
Nonperforming loans and leases to total loans and leases(1)

0.61

0.77

Nonperforming assets to total assets(1) 0.77 1.62
Allowance for loan and lease losses to total loans and leases(1)

2.04

2.17

 

 

Other information:

Non-accrual loans and leases(1) $ 11,562 $ 13,973
Accruing loans and leases – 90 days past due(1) - -
Troubled and restructured loans and leases(1) - -
ORE and repossessions(1) 17,825 39,820
Impaired covered loans 7,235 -
 
* Adjusted to give effect to 2-for-1 stock split effective August 16, 2011.
** Ratios for interim periods annualized based on actual days.
(1) Excludes loans and/or foreclosed assets covered by FDIC loss share agreements, except for their inclusion in total assets.
                 

Bank of the Ozarks, Inc.

Supplemental Quarterly Financial Data

(Dollars in Thousands, Except Per Share Amounts)

Unaudited

 
  6/30/10     9/30/10     12/31/10     3/31/11     6/30/11     9/30/11     12/31/11     3/31/12  

Earnings Summary:

Net interest income $ 29,729 $ 32,768 $ 33,945 $ 36,083 $ 42,476 $ 44,336 $ 45,839 $ 43,833
Federal tax (FTE) adjustment   2,554     2,447     2,341     2,318     2,235     2,256     2,210     2,288  
Net interest income (FTE) 32,283 35,215 36,286 38,401 44,711 46,592 48,049 46,121
Provision for loan and lease losses (3,400 ) (4,300 ) (4,100 ) (2,250 ) (3,750 ) (1,500 ) (4,275 ) (3,076 )
Non-interest income 9,127 25,183 18,646 12,990 75,058 16,071 12,964 13,810
Non-interest expense   (21,110 )   (23,565 )   (25,274 )   (26,192 )   (35,200 )   (31,800 )   (29,339 )   (28,607 )
Pretax income (FTE) 16,900 32,533 25,558 22,949 80,819 29,363 27,399 28,248
FTE adjustment (2,554 ) (2,447 ) (2,341 ) (2,318 ) (2,235 ) (2,256 ) (2,210 ) (2,288 )
Provision for income taxes (3,488 ) (9,878 ) (6,303 ) (6,004 ) (28,380 ) (8,220 ) (7,604 ) (7,950 )
Noncontrolling interest   32     17     17     3     13     17     (15 )   (1 )
Net income available to common stockholders

$

10,890

 

$

20,225

 

$

16,931

 

$

14,630

 

$

50,217

 

$

18,904

 

$

17,570

 

$

18,009

 
 
Earnings per common share – diluted * $ 0.32 $ 0.59 $ 0.49 $ 0.43 $ 1.46 $ 0.55 $ 0.51 $ 0.52
 

Non-interest Income:

Service charges on deposit accounts $ 3,933 $ 4,002 $ 4,019 $ 3,838 $ 4,586 $ 4,734 $ 4,936 $ 4,693
Mortgage lending income 815 1,024 1,495 681 634 815 1,147 1,101
Trust income 794 802 888 782 803 810 811 774
Bank owned life insurance income 534 580 574 568 575 585 580 576

Accretion of FDIC loss share receivable, net of amortization of FDIC clawback payable

271

906

1,252

1,998

2,923

2,861

2,359

2,305

Other loss share income, net - 295 304

971

984 2,976 1,501 1,983
Gains (losses) on investment securities 2,052 570 226 152 199 638 (56 ) 1
Gains on sales of other assets 38 267 571 407 705 1,727 899 1,555
Gains on FDIC-assisted transactions - 16,122 8,859 2,952 62,756 - - -
Other   690     615     458     641     893     925     787     822  
Total non-interest income $ 9,127   $ 25,183   $ 18,646   $ 12,990   $ 75,058   $ 16,071   $ 12,964   $ 13,810  
 

Non-interest Expense:

Salaries and employee benefits $ 8,996 $ 10,539 $ 12,351 $ 11,647 $ 14,817 $ 14,597 $ 15,202 $ 14,052
Net occupancy expense 2,416 2,782 2,999 3,106 3,775 4,301 3,522 3,878
Other operating expenses 9,587 10,111 9,764 11,211 16,172 12,398 10,106 10,168
Amortization of intangibles   111     133     160     228     436     504     509     509  
Total non-interest expense $ 21,110   $ 23,565   $ 25,274   $ 26,192   $ 35,200   $ 31,800   $ 29,339   $ 28,607  
 

Allowance for Loan and Lease Losses:

 

Balance at beginning of period $ 39,774 $ 40,176 $ 40,250 $ 40,230 $ 39,225 $ 39,124 $ 39,136 $ 39,169
Net charge-offs (2,998 ) (4,226 ) (4,120 ) (3,255 ) (3,851 ) (1,488 ) (4,242 ) (3,613 )
Provision for loan and lease losses   3,400     4,300     4,100     2,250     3,750     1,500     4,275     3,076  
Balance at end of period $ 40,176   $ 40,250   $ 40,230   $ 39,225   $ 39,124   $ 39,136   $ 39,169   $ 38,632  
 

Selected Ratios:

Net interest margin - FTE** 5.10 % 5.31 % 5.35 % 5.61 % 5.80 % 5.90 % 6.05 % 5.98 %
Efficiency ratio 50.98 39.02 46.01 50.97 29.39 50.75 48.09 47.73
Net charge-offs to average loans and leases**(1)

0.64

0.88

0.87

0.72

0.85

0.33

0.84

0.44

Nonperforming loans and leases to total loans and leases(1)

0.87

0.90

0.75

0.77

1.09

1.22

0.70

0.61

Nonperforming assets to total assets(1) 2.12 1.85 1.72 1.62 1.39 1.45 1.17 0.77
Allowance for loan and lease losses to total loans and leases(1)

2.11

2.13

2.17

2.17

2.17

2.10

2.08

2.04

Loans and leases past due 30 days or more, including past due non-accrual loans and leases, to total loans and leases(1)

1.80

1.90

2.02

2.19

2.47

1.89

1.56

0.86

 
* Adjusted to give effect to 2-for-1 stock split effective August 16, 2011.
** Ratios for interim periods annualized based on actual days.
(1) Excludes loans and/or foreclosed assets covered by FDIC loss share agreements, except for their inclusion in total assets.
   

Bank of the Ozarks, Inc.

Average Consolidated Balance Sheets and Net Interest Analysis - FTE

(Dollars in Thousands)

Unaudited

 
Three Months Ended March 31,
2012         2011  
Average       Income/     Yield/ Average       Income/     Yield/
Balance Expense Rate Balance Expense Rate
ASSETS
Interest earning assets:
Interest earning deposits and federal funds sold

$

827

$

2

0.81

%

$

1,884

$

3

0.54

%

Investment securities:
Taxable 85,906 715 3.35 42,263 427 4.09
Tax-exempt – FTE 349,939 6,516 7.49 351,570 6,604 7.62
Loans and leases – FTE 1,886,441 28,303 6.03 1,827,543 27,882 6.19
Covered loans*   780,969   16,695 8.60   551,629   11,424 8.40
Total interest earning assets – FTE 3,104,082 52,231 6.77 2,774,889 46,340 6.77
Non-interest earning assets   697,528   578,644
Total assets $ 3,801,610 $ 3,353,533
 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Interest bearing liabilities:
Deposits:
Savings and interest bearing transaction

$

1,550,154

$

1,376

0.36

%

$

1,338,957

$

2,266

0.69

%

Time deposits of $100,000 or more

396,762 669 0.68 481,032 1,235 1.04
Other time deposits   494,457   870 0.71   464,046   1,279 1.12
Total interest bearing deposits 2,441,373 2,915 0.48 2,284,035 4,780 0.85
Repurchase agreements with customers

38,675

21

0.21

42,595

61

0.58

Other borrowings 299,073 2,700 3.63 297,351 2,672 3.64
Subordinated debentures   64,950   474 2.94   64,950   426 2.66
Total interest bearing liabilities 2,844,071 6,110 0.86 2,688,931 7,939 1.20
Non-interest bearing liabilities:
Non-interest bearing deposits 452,292 314,173
Other non-interest bearing liabilities   69,285   20,207
Total liabilities 3,365,648 3,023,311
Common stockholders’ equity 432,536 326,787
Noncontrolling interest   3,426   3,435
Total liabilities and stockholders’ equity

$

3,801,610

 

 

$

3,353,533

   
Net interest income – FTE $ 46,121 $ 38,401
Net interest margin – FTE 5.98 % 5.61 %
 
* Covered loans are loans covered by FDIC loss share agreements.




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