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Bank Of The Ozarks, Inc. Announces Third 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 116 offices, including 66 Arkansas offices, 28 Georgia offices, 13 Texas offices, four Florida offices, two Alabama offices, two North Carolina offices and one South Carolina office. 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     Nine Months Ended
September 30, September 30,

2012

   

2011

   

% Change

2012

   

2011

   

% Change

Income statement data:

Net interest income $ 44,444 $ 44,336 0.2 % $ 130,576 $ 122,895 6.3 %
Provision for loan and lease losses 3,080 1,500 105.3 9,212 7,500 22.8
Non-interest income 14,491 16,071 (9.8 ) 44,012 104,119 (57.7 )
Non-interest expense 28,682 31,800 (9.8 ) 84,571 93,191 (9.2 )
Net income available to common stockholders 19,275 18,904 2.0 56,377 83,751 (32.7 )

 

Common stock data:

Net income per share – diluted $ 0.55 $ 0.55 0.0 % $ 1.62 $ 2.43 (33.3 )%
Net income per share – basic 0.56 0.55 1.8 1.63 2.45 (33.5 )
Cash dividends per share 0.13 0.095 36.8 0.36 0.27 33.3
Book value per share 13.78 11.87 16.1 13.78 11.87 16.1
Diluted shares outstanding (thousands) 34,963 34,510 34,872 34,434
End of period shares outstanding (thousands) 34,665 34,277 34,665 34,277
 

Balance sheet data at period end:

Assets $ 3,823,017 $ 3,932,145 (2.8 )% $ 3,823,017 $ 3,932,145 (2.8 )%
Loans and leases not covered by loss share 2,033,005 1,863,114 9.1 2,033,005 1,863,114 9.1
Loans covered by loss share 652,798 860,425 (24.1 ) 652,798 860,425 (24.1 )
Allowance for loan and lease losses 38,672 39,136 (1.2 ) 38,672 39,136 (1.2 )
Foreclosed assets covered by loss share 57,632 72,740 (20.8 ) 57,632 72,740 (20.8 )
FDIC loss share receivable 174,899 324,456 (46.1 ) 174,899 324,456 (46.1 )
Investment securities 429,935 439,596 (2.2 ) 429,935 439,596 (2.2 )
Goodwill 5,243 5,243 - 5,243 5,243 -
Other intangibles – net of amortization 5,437 7,473 (27.2 ) 5,437 7,473 (27.2 )
Deposits 2,891,735 3,046,469 (5.1 ) 2,891,735 3,046,469 (5.1 )
Repurchase agreements with customers 32,511 46,334 (29.8 ) 32,511 46,334 (29.8 )
Other borrowings 280,771 289,353 (3.0 ) 280,771 289,353 (3.0 )
Subordinated debentures 64,950 64,950 - 64,950 64,950 -
Common stockholders’ equity 477,851 406,945 17.4 477,851 406,945 17.4
Net unrealized gains (losses) on investment securities AFS included in common stockholders’ equity

12,960

7,930

 

12,960

7,930

 

Loan and lease, including covered loans, to deposit ratio

92.88

%

89.40

%

92.88

%

89.40

%

 

Selected ratios:

Return on average assets* 2.05 % 1.91 % 2.00 % 3.01 %
Return on average common stockholders’ equity* 16.40 18.97 16.73 31.01
Average common equity to total average assets 12.50 10.05 11.94 9.72
Net interest margin – FTE* 5.97 5.90 5.93 5.77
Efficiency ratio 47.00 50.75 46.69 39.86
Net charge-offs to average loans and leases*(1)(2) 0.32 0.33 0.31 0.63
Nonperforming loans and leases to total loans and leases(1)

0.44

1.22

0.44

1.22

Nonperforming assets to total assets(1) 0.59 1.45 0.59 1.45
Allowance for loan and lease losses to total loans and leases(1)

1.90

2.10

 

1.90

2.10

 

 

Other information:

Non-accrual loans and leases(1) $ 8,882 $ 22,805 $ 8,882 $ 22,805
Accruing loans and leases – 90 days past due(1) - - - -
Troubled and restructured loans and leases(1) - - - -
ORE and repossessions(1) 13,828 34,338 13,828 34,338
Impaired covered loans 31,002 - 31,002 -
 
* 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.
(2) Excludes net charge-offs related to loans covered by FDIC loss share agreements.

 
 
 

Bank of the Ozarks, Inc. Supplemental Quarterly Financial Data(Dollars in Thousands, Except Per Share Amounts)Unaudited

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

Earnings Summary:

Net interest income $ 33,945 $ 36,083 $ 42,476 $ 44,336 $ 45,839 $ 43,833 $ 42,298 $ 44,444
Federal tax (FTE) adjustment   2,341     2,318     2,235     2,256     2,210     2,288     2,151     2,087  
Net interest income (FTE) 36,286 38,401 44,711 46,592 48,049 46,121 44,449 46,531
Provision for loan and lease losses (4,100 ) (2,250 ) (3,750 ) (1,500 ) (4,275 ) (3,076 ) (3,055 ) (3,080 )
Non-interest income 18,646 12,990 75,058 16,071 12,964 13,810 15,710 14,491
Non-interest expense   (25,274 )   (26,192 )   (35,200 )   (31,800 )   (29,339 )   (28,607 )   (27,282 )   (28,682 )
Pretax income (FTE) 25,558 22,949 80,819 29,363 27,399 28,248 29,822 29,260
FTE adjustment (2,341 ) (2,318 ) (2,235 ) (2,256 ) (2,210 ) (2,288 ) (2,151 ) (2,087 )
Provision for income taxes (6,303 ) (6,004 ) (28,380 ) (8,220 ) (7,604 ) (7,950 ) (8,584 ) (7,883 )
Noncontrolling interest   17     3     13     17     (15 )   (1 )   5     (15 )
Net income available to common stockholders

$

16,931

 

$

14,630

 

$

50,217

 

$

18,904

 

$

17,570

 

$

18,009

 

$

19,092

 

$

19,275

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

Non-interest Income:

Service charges on deposit accounts $ 4,019 $ 3,838 $ 4,586 $ 4,734 $ 4,936 $ 4,693 $ 4,908 $ 5,000
Mortgage lending income 1,495 681 634 815 1,147 1,101 1,328 1,672
Trust income 888 782 803 810 811 774 888 865
Bank owned life insurance income 574 568 575 585 580 576 567 598
Accretion of FDIC loss share receivable, net of amortization of FDIC clawback payable

 

1,252

 

1,998

 

2,923

 

2,861

 

2,359

 

2,305

 

2,035

 

1,699

Other loss share income, net 304 971 984 2,976 1,501 1,983 3,197 2,270
Gains (losses) on investment securities 226 152 199 638 (56 ) 1 402 -
Gains on sales of other assets 571 407 705 1,727 899 1,555 1,397 1,425
Gains on FDIC-assisted transactions 8,859 2,952 62,756 - - - - -
Other   458     641     893     925     787     822     988     962  
Total non-interest income $ 18,646   $ 12,990   $ 75,058   $ 16,071   $ 12,964   $ 13,810   $ 15,710   $ 14,491  
 

Non-interest Expense:

Salaries and employee benefits $ 12,351 $ 11,647 $ 14,817 $ 14,597 $ 15,202 $ 14,052 $ 14,574 $ 15,040
Net occupancy expense 2,999 3,106 3,775 4,301 3,522 3,878 3,650 4,105
Other operating expenses 9,764 11,211 16,172 12,398 10,106 10,168 8,549 9,028
Amortization of intangibles   160     228     436     504     509     509     509     509  
Total non-interest expense $ 25,274   $ 26,192   $ 35,200   $ 31,800   $ 29,339   $ 28,607   $ 27,282   $ 28,682  
 

Allowance for Loan and Lease Losses:

Balance at beginning of period $ 40,250 $ 40,230 $ 39,225 $ 39,124 $ 39,136 $ 39,169 $ 38,632 $ 38,862
Net charge-offs (4,120 ) (3,255 ) (3,851 ) (1,488 ) (4,242 ) (3,613 ) (2,825 ) (3,270 )
Provision for loan and lease losses   4,100     2,250     3,750     1,500     4,275     3,076     3,055     3,080  
Balance at end of period $ 40,230   $ 39,225   $ 39,124   $ 39,136   $ 39,169   $ 38,632   $ 38,862   $ 38,672  
 

Selected Ratios:

Net interest margin - FTE** 5.35 % 5.61 % 5.80 % 5.90 % 6.05 % 5.98 % 5.84 % 5.97 %
Efficiency ratio 46.01 50.97 29.39 50.75 48.09 47.73 45.35 47.00
Net charge-offs to average loans and leases**(1)(2)

0.87

0.72

0.85

0.33

0.84

0.44

0.18

0.32

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

0.75

0.77

1.09

1.22

0.70

0.61

0.50

0.44

Nonperforming assets to total assets(1) 1.72 1.62 1.39 1.45 1.17 0.77 0.63 0.59
Allowance for loan and lease losses to total loans and leases(1)

2.17

2.17

2.17

2.10

2.08

2.04

1.96

1.90

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

 

 

2.02

 

 

2.19

 

 

2.47

 

 

1.89

 

 

1.56

 

 

0.86

 

 

0.75

 

 

0.62

 
* 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.
(2) Excludes net charge-offs related to loans covered by FDIC loss share agreements.

 
 
 

Bank of the Ozarks, Inc.

Average Consolidated Balance Sheets and Net Interest Analysis – FTE

Unaudited

 
    Three Months Ended September 30,     Nine Months Ended September 30,
2012     2011 2012     2011
Average     Income/     Yield/ Average     Income/     Yield/ Average     Income/     Yield/ Average     Income/     Yield/

Balance

Expense

Rate

Balance

Expense

Rate

Balance

Expense

Rate

Balance

Expense

Rate

(Dollars in thousands)
ASSETS
Earning assets:
Interest earning deposits and federal funds sold

$

1,226

$

2

0.61

%

$

1,405

$

5

1.60

%

$

1,138

$

5

0.59

%

$

1,865

$

31

2.21

%

Investment securities:
Taxable 85,845 757 3.51 109,782 838 3.03 84,732 2,177 3.43 101,646 2,324 3.06
Tax-exempt – FTE 325,756 5,945 7.26 342,368 6,427 7.45 337,591 18,589 7.36 344,845 19,399 7.52
Loans and leases – FTE 2,003,013 29,492 5.86 1,796,113 27,799 6.14 1,932,708 85,217 5.89 1,815,004 83,734 6.17
Covered loans   682,506   15,347 8.95   884,864   19,089 8.56   731,658   47,710 8.69   744,069   48,119 8.65
Total earning assets – FTE 3,098,346 51,543 6.62 3,134,532 54,158 6.85 3,087,827 153,698 6.65 3,007,429 153,607 6.83
Non-interest earning assets   640,824   800,269   680,379   706,952
Total assets $ 3,739,170 $ 3,934,801 $ 3,768,206 $ 3,714,381
 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Interest bearing liabilities:
Deposits:
Savings and interest bearing transaction

$

1,559,520

$

1,002

0.26

%

$

1,632,593

$

2,071

0.50

%

$

1,561,417

$

3,517

0.30

%

$

1,500,892

$

6,854

0.61

%

Time deposits of $100,000 or more

332,122 377 0.45 403,394 888 0.87 358,956 1,539 0.57 446,737 3,219 0.96
Other time deposits   422,632   533 0.50   631,347   1,430 0.90   457,445   2,082 0.61   582,906   4,294 0.99
Total interest bearing deposits 2,314,274 1,912 0.33 2,667,334 4,389 0.65 2,377,818 7,138 0.40 2,530,535 14,367 0.76
Repurchase agreements with customers

32,288

7

0.09

37,082

35

0.37

35,626

40

0.15

39,944

153

0.51

Other borrowings 301,673 2,628 3.47 283,176 2,712 3.80 295,342 8,020 3.63 291,484 8,096 3.71
Subordinated debentures   64,950   465 2.85   64,950   430 2.63   64,950   1,398 2.88   64,950   1,288 2.65
Total interest bearing liabilities 2,713,185 5,012 0.73 3,052,542 7,566 0.98 2,773,736 16,596 0.80 2,926,913 23,904 1.09
Non-interest bearing liabilities:
Non-interest bearing deposits 498,529 419,349 480,593 377,278
Other non-interest bearing liabilities   56,588   64,069   60,411   45,642
Total liabilities 3,268,302 3,535,960 3,314,740 3,349,833
Common stockholders’ equity 467,449 395,430 450,044 361,123
Noncontrolling interest   3,419   3,411   3,422   3,425
Total liabilities and stockholders’ equity

$

3,739,170

$

3,934,801

 

 

$

3,768,206

$

3,714,381

 

 

       
Net interest income – FTE $ 46,531 $ 46,592 $ 137,102 $ 129,703
Net interest margin – FTE 5.97 % 5.90 % 5.93 % 5.77 %
 




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