This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
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
TheStreet Open House

5 Bank Stocks That Can't Stop Posting Profits

Stocks in this article: BACCUSBPBCFRBOHOZRKCBUNBTBFFINI:BKX

3. Bank of the Ozarks


Shares of Bank of the Ozarks (OZRK) of Little Rock, Ark., closed at $33.47 Monday, returning 15% during 2012, with a three-year total return of 143% and a five-year return of 180%.

The shares traded for 2.5 times tangible book value, and for 14.6 times the consensus 2013 EPS estimate of $2.29. The consensus 2014 EPS estimate is $2.42.

Based on Monday's close and a quarterly payout of 14 cents, the shares had a dividend yield of 1.67%.

For the first quarter of 2010 through the third quarter of 2012, the bank's return on average tangible common equity was 22.05%.

Bank of the Ozarks had $3.8 billion in total assets as of Sept. 30. The bank has been expanding through acquisitions, including the purchase of seven failed institutions from the Federal Deposit Insurance Corp. in 2010 and 2011. The bank's most recent acquisition was Genala Banc., Inc., which held The Citizens Bank of Geneva Ala., which had $166.8 million in total assets as of Sept. 30. Bank of the Ozarks paid roughly $27.5 million in cash and stock to complete the deal.

The bank reported third-quarter earnings of $19.3 million, or 55 cents a share, increasing from $19.1 million, or 55 cents a share, the previous quarter, and $18.9 million, or 55 cents a share, a year earlier. Bank of the Ozarks bucked the industry trend, with its net interest margin expanding to 5.97% in the third quarter from 5.84% in the second quarter and 5.90% in the third quarter of 2011.

The third-quarter return on average tangible common equity was 16.84%.

FIG Partners analyst Brian Martin rates Bank of the Ozarks "Market Perform," with a $35 price target, saying on Oct. 15 that "an increased focus on organic loan growth sets the stage for positive earnings momentum in the coming quarters even without the benefit of M&A," although he also said that "M&A is a key priority for OZRK as they continue to build capital at a faster rate than they can deploy it with any deal announced expected to be additive to EPS and tangible book value given pricing disciplines."

Martin said that his neutral rating for the shares was "value driven," although "on a fundamental basis, OZRK remains one of the best performing banks in our coverage universe and industry."

The analyst estimates that Bank of the Ozarks will earn $2.34 a share in 2013.

OZRK Chart OZRK data by YCharts

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!

COMPARE ALL SERVICES
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 16,461.32 -153.49 -0.92%
S&P 500 1,927.11 -14.17 -0.73%
NASDAQ 4,382.8470 -36.6310 -0.83%

Brokerage Partners

Rates from Bankrate.com

  • 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