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

Bank of the Ozarks, Inc. (NASDAQ: OZRK) today announced that net income for the quarter ended June 30, 2012 was $19.1 million, a 62.0% decrease from $50.2 million for the second quarter of 2011. Diluted earnings per common share for the second quarter of 2012 were $0.55, a 62.3% decrease from $1.46 for the second quarter of 2011.

For the six months ended June 30, 2012, net income totaled $37.1 million, a 42.8% decrease from net income of $64.8 million for the first six months of 2011. Diluted earnings per common share for the first six months of 2012 were $1.06, a 43.6% decrease from $1.88 for the first six months of 2011.

The Company made no FDIC-assisted acquisitions during the first six months of 2012, and its results for the second quarter and first six months of 2012 did not include any bargain purchase gains or any acquisition or conversion costs related to its seven previous FDIC-assisted acquisitions. The Company’s results for the second quarter of 2011 included two FDIC-assisted acquisitions which resulted in a gain, net of acquisition and conversion costs, of approximately $36.4 million after taxes, or approximately $1.06 of diluted earnings per common share. The Company’s results for the first six months of 2011 included three FDIC-assisted acquisitions which resulted in a gain, net of acquisition and conversion costs, of approximately $37.3 million after taxes, or approximately $1.09 of diluted earnings per common share.

On August 16, 2011 the Company completed a 2-for-1 stock split, in the form of a stock dividend, effected by issuing one share of common stock for each share of such stock outstanding on August 5, 2011. All share and per share information contained in this release has been adjusted to give effect to this stock split.

The Company’s annualized returns on average assets and average common stockholders’ equity for the second quarter of 2012 were 2.04% and 17.07%, respectively, compared to 5.24% and 55.88%, respectively, for the second quarter of 2011. Annualized returns on average assets and average common stockholders’ equity for the first six months of 2012 were 1.97% and 16.91%, respectively, compared to 3.63% and 38.05%, respectively, for the first six months of 2011.

In commenting on these results, George Gleason, Chairman and Chief Executive Officer, stated, “We are very pleased to report our excellent results for the quarter just ended. As we had expected, growth in non-covered loans and leases was robust. Asset quality, which has been one of our traditional strengths, got even better as evidenced by improvement in our asset quality ratios to the best levels in four years. Our net interest margin continued to be among the best in the industry. We had excellent results in almost every category of non-interest income, and our non-interest expense declined for the fourth consecutive quarter. Even more important, we believe we are well positioned for future growth and profitability.”

Loans and leases, excluding loans covered by FDIC loss share agreements (“covered loans”), were $1.98 billion at June 30, 2012, a 10.0% increase compared to $1.80 billion at June 30, 2011. Including covered loans, total loans and leases were $2.69 billion at June 30, 2012, a 0.4% decrease from $2.70 billion at June 30, 2011.

Mr. Gleason stated, “During the quarter just ended, our balance of loans and leases outstanding, excluding covered loans, increased $89 million, and our unfunded balance of closed loans increased $163 million from $391 million at March 31, 2012 to $554 million at June 30, 2012. The significant increase in our unfunded balance of closed loans has favorable implications for further growth in the balance of loans and leases outstanding in future quarters.”

Deposits were $2.81 billion at June 30, 2012, an 11.4% decrease compared to $3.17 billion at June 30, 2011.

Total assets were $3.76 billion at June 30, 2012, a 6.5% decrease compared to $4.03 billion at June 30, 2011.

Common stockholders’ equity was $460 million at June 30, 2012, a 19.2% increase from $386 million at June 30, 2011. Book value per common share was $13.29 at June 30, 2012, a 17.9% increase from $11.27 at June 30, 2011. Changes in common stockholders’ equity and book value per common share reflect earnings, dividends paid, stock option and stock grant transactions, and changes in the Company’s mark-to-market adjustment for unrealized gains and losses on investment securities available for sale.

The Company’s ratio of common stockholders’ equity to total assets increased to 12.21% as of June 30, 2012, compared to 9.57% as of June 30, 2011. Its ratio of tangible common stockholders’ equity to tangible total assets increased to 11.95% as of June 30, 2012 compared to 9.28% as of June 30, 2011.

NET INTEREST INCOME

Net interest income for the second quarter of 2012 decreased 0.4% to $42.3 million compared to $42.5 million for the second quarter of 2011 and decreased 3.5% compared to $43.8 million in the first quarter of 2012. Net interest margin, on a fully taxable equivalent (“FTE”) basis, increased four basis points to 5.84% in the second quarter of 2012 compared to 5.80% in the second quarter of 2011, but decreased 14 basis points compared to 5.98% in the first quarter of 2012. Average earning assets decreased to $3.06 billion in the second quarter of 2012 compared to $3.09 billion in the second quarter of 2011 and $3.10 billion in the first quarter of 2012.

Net interest income for the first six months of 2012 was $86.1 million, a 9.6% increase from $78.6 million for the first six months of 2011. The Company’s net interest margin (FTE) for the first six months of 2012 was 5.91%, a 20 basis point increase from 5.71% for the first six months of 2011. Average earning assets increased to $3.08 billion for the first six months of 2012 compared to $2.93 billion in the first six months of 2011.

NON-INTEREST INCOME

Non-interest income for the second quarter of 2012 decreased 79.1% to $15.7 million compared to $75.1 million for the second quarter of 2011 but increased 13.8% compared to $13.8 million for the first quarter of 2012. Results for the second quarter of 2011 included a pre-tax bargain purchase gain of $62.8 million on two FDIC-assisted acquisitions. The Company made no FDIC-assisted acquisitions in the second quarter or first six months of 2012.

Non-interest income for the first six months of 2012 was $29.5 million, a 66.5% decrease from $88.0 million for the first six months of 2011. Results for the first six months of 2011 included a pre-tax bargain purchase gain of $65.7 million on three FDIC-assisted acquisitions.

Service charges on deposit accounts increased 7.0% to $4.91 million in the second quarter of 2012 compared to $4.59 million in the second quarter of 2011. Service charges on deposit accounts were $9.60 million for the first six months of 2012, a 14.0% increase from $8.42 million for the first six months of 2011.

Mortgage lending income increased 109.5% to $1.33 million in the second quarter of 2012 compared to $0.63 million in the second quarter of 2011. Mortgage lending income was $2.43 million in the first six months of 2012, an 84.7% increase from $1.31 million in the first six months of 2011.

Trust income for the second quarter of 2012 increased 10.6% to $0.89 million compared to $0.80 million for the second quarter of 2011. Trust income was $1.66 million in the first six months of 2012, a 4.9% increase from $1.59 million in the first six months of 2011.

Income from accretion of the Company’s FDIC loss share receivable, net of amortization of the Company’s FDIC clawback payable, was $2.04 million in the second quarter of 2012, a decrease of 30.4% compared to $2.92 million in the second quarter of 2011. For the first six months of 2012, income from accretion of the Company’s FDIC loss share receivable, net of amortization of the Company’s FDIC clawback payable, was $4.34 million, a decrease of 11.8% compared to $4.92 million in the first six months of 2011.

Other loss share income was $3.20 million in the second quarter of 2012, an increase of 224.9% compared to $0.98 million in the second quarter of 2011. Other loss share income was $5.18 million in the first six months of 2012 compared to $1.96 million in the first six months of 2011, an increase of 165.0%.

Net gains on sales of other assets were $1.40 million in the second quarter of 2012 compared to $0.71 million in the second quarter of 2011. Net gains on sales of other assets were $2.95 million in the first six months of 2012 compared to $1.11 million in the first six months of 2011. The net gains on sales of other assets in the second quarter and first six months of 2012 were primarily due to net gains on sales of foreclosed assets covered by FDIC loss share agreements.

NON-INTEREST EXPENSE

Non-interest expense for the second quarter of 2012 decreased 22.5% to $27.3 million compared to $35.2 million for the second quarter of 2011. Non-interest expense for the second quarter of 2011 included pre-tax acquisition and conversion costs related to FDIC-assisted acquisitions of approximately $2.9 million. There were no acquisition and conversion costs included in the Company’s results for the second quarter of 2012.

The Company’s efficiency ratio for the quarter ended June 30, 2012 was 45.4% compared to 29.4% for the second quarter of 2011 and 47.7% for the first quarter of 2012.

Non-interest expense for the first six months of 2012 was $55.9 million, a 9.0% decrease from $61.4 million for the first six months of 2011. Non-interest expense for the first six months of 2011 included pre-tax acquisition and conversion costs related to FDIC-assisted acquisitions of approximately $4.3 million. There were no acquisition and conversion costs included in the Company’s results for the first six months of 2012.

The Company’s efficiency ratio for the first six months of 2012 was 46.5% compared to 35.9% for the first six months of 2011.

ASSET QUALITY, CHARGE-OFFS AND ALLOWANCE

Loans, repossessions and foreclosed assets covered by FDIC loss share agreements, along with the related FDIC loss share receivable, are presented in the Company’s financial reports with a carrying value equal to the net present value of expected future proceeds. At June 30, 2012, the carrying value of covered loans was $712 million, foreclosed assets covered by loss share was $65 million and the FDIC loss share receivable was $209 million. At June 30, 2011, the carrying value of covered loans was $903 million, foreclosed assets covered by loss share was $78 million and the FDIC loss share receivable was $357 million.

Excluding covered loans, nonperforming loans and leases as a percent of total loans and leases improved to 0.50% as of June 30, 2012 compared to 1.09% as of June 30, 2011 and 0.61% as of March 31, 2012.

Excluding covered loans and foreclosed assets covered by loss share, nonperforming assets as a percent of total assets improved to 0.63% as of June 30, 2012 compared to 1.39% as of June 30, 2011 and 0.77% as of March 31, 2012.

Excluding covered loans, the Company’s ratio of loans and leases past due 30 days or more, including past due non-accrual loans and leases, to total loans and leases improved to 0.75% as of June 30, 2012 compared to 2.47% as of June 30, 2011 and 0.86% as of March 31, 2012.

The Company’s net charge-offs for the second quarter of 2012 decreased to $2.8 million compared to $3.9 million for the second quarter of 2011 and $3.6 million for the first quarter of 2012. The Company’s net charge-offs for the second quarter of 2012 included $0.8 million for non-covered loans and leases and $2.0 million for covered loans. The Company’s net charge-offs for the second quarter of 2011 included $3.9 million for non-covered loans and leases and none for covered loans. The Company’s net charge-offs for the first quarter of 2012 included $2.1 million for non-covered loans and leases and $1.5 million for covered loans. Net charge-offs for covered loans are reported net of applicable FDIC loss share receivable amounts.

The Company’s annualized net charge-off ratio for its non-covered loans and leases improved to 0.18% for the second quarter of 2012 compared to 0.85% for the second quarter of 2011 and 0.44% for the first quarter of 2012. The Company’s annualized net charge-off ratio for all loans and leases, including covered loans, improved to 0.43% for the second quarter of 2012 compared to 0.59% for the second quarter of 2011 and 0.55% for the first quarter of 2012.

The Company’s net charge-offs for the first six months of 2012 decreased to $6.4 million compared to $7.1 million for the first six months of 2011. The Company’s net charge-offs for the first six months of 2012 included $3.0 million for non-covered loans and leases and $3.4 million for covered loans. The Company’s net charge-offs for the first six months of 2011 included $7.1 million for non-covered loans and leases and none for covered loans.

The Company’s annualized net charge-off ratio for its non-covered loans and leases improved to 0.31% for the first six months of 2012 compared to 0.79% for the first six months of 2011. The Company’s annualized net charge-off ratio for all loans and leases, including covered loans, improved to 0.49% for the first six months of 2012 compared to 0.57% for the first six months of 2011.

For the second quarter of 2012, the Company’s provision for loan and lease losses decreased to $3.1 million, which included $1.1 million for non-covered loans and leases and $2.0 million for covered loans. For the second quarter of 2011, the Company’s provision for loan and lease losses was $3.8 million, all of which was for non-covered loans and leases. For the first six months of 2012, the Company’s provision for loan and lease losses increased to $6.1 million, which included $2.7 million for non-covered loans and leases and $3.4 million for covered loans. For the first six months of 2011, the Company’s provision for loan and lease losses was $6.0 million, all of which was for non-covered loans and leases.

The Company’s allowance for loan and lease losses was $38.9 million, or 1.96% of total non-covered loans and leases at June 30, 2012, compared to $39.1 million, or 2.17% of total non-covered loans and leases at June 30, 2011, and $38.6 million, or 2.04% of total non-covered loans and leases at March 31, 2012. The Company had no allowance for covered loans at June 30, 2012 or 2011 or March 31, 2012.

CONFERENCE CALL

Management will conduct a conference call to review announcements made in this press release at 10:00 a.m. CDT (11:00 a.m. EDT) on Friday, July 13, 2012. The call will be available live or in recorded version on the Company’s website www.bankozarks.com under “Investor Relations” or interested parties calling from locations within the United States and Canada may call 1-888-298-3511 up to ten minutes prior to the beginning of the conference and ask for the Bank of the Ozarks conference call. A recorded playback of the entire call will be available on the Company’s website or by telephone by calling 1-888-203-1112 in the United States and Canada or 719-457-0820 internationally. The passcode for this telephone playback is 2450813. The telephone playback will be available for one week following the call, and the website recording of the call will be available for 12 months.

FORWARD LOOKING STATEMENTS

This release and other communications by the Company contain forward looking statements regarding the Company’s plans, expectations, thoughts, beliefs, estimates, goals and outlook for the future. Actual results may differ materially from those projected in such forward looking statements due to, among other things, potential delays or other problems implementing the Company’s growth and expansion strategy including delays in identifying satisfactory sites, hiring or retaining qualified personnel, obtaining regulatory or other approvals, obtaining permits and designing, constructing and opening new offices; the ability to enter into additional FDIC-assisted acquisitions or problems with integrating or managing acquisitions; opportunities to profitably deploy capital; the ability to achieve growth in loans, leases and deposits, including growth from unfunded closed loans; the ability to generate future revenue growth or to control future growth in non-interest expense; interest rate fluctuations, including changes in the yield curve between short-term and long-term interest rates; competitive factors and pricing pressures, including their effect on the Company’s net interest margin; general economic, unemployment, credit market and real estate market conditions, including their effect on the creditworthiness of borrowers and lessees, collateral values, the value of investment securities and asset recovery values, including the value of the FDIC loss share receivable and related assets covered by FDIC loss share agreements; changes in legal and regulatory requirements; recently enacted and potential legislation and regulatory actions, including legislation and regulatory actions intended to stabilize economic conditions and credit markets, increase regulation of the financial services industry and protect homeowners or consumers; changes in U.S. government monetary and fiscal policy; possible further downgrade of U.S. Treasury securities; adoption of new accounting standards or changes in existing standards; and adverse results in current or future litigation as well as other factors identified in this press release or in Management’s Discussion and Analysis under the caption “Forward Looking Information” contained in the Company’s 2011 Annual Report to Stockholders and the most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission.

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 115 offices, including 66 Arkansas offices, 28 Georgia offices, 13 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 Six Months Ended
June 30, June 30,

2012
 

2011
 

%

Change

2012
 

2011
 

%

Change

Income statement data:
Net interest income $ 42,298 $ 42,476 (0.4 )% $ 86,132 $ 78,559 9.6 %
Provision for loan and lease losses 3,055 3,750 (18.5 ) 6,131 6,000 2.2
Non-interest income 15,710 75,058 (79.1 ) 29,520 88,048 (66.5 )
Non-interest expense 27,282 35,200 (22.5 ) 55,889 61,392 (9.0 )
Net income available to common stockholders 19,092 50,217 (62.0 ) 37,102 64,847 (42.8 )
 

Common stock data:*
Net income per share – diluted $ 0.55 $ 1.46 (62.3 )% $ 1.06 $ 1.88 (43.6 )%
Net income per share – basic 0.55 1.47 (62.6 ) 1.07 1.90 (43.7 )
Cash dividends per share 0.12 0.09 33.3 0.23 0.175 31.4
Book value per share 13.29 11.27 17.9 13.29 11.27 17.9
Diluted shares outstanding (thousands) 34,887 34,464 34,851 34,406
End of period shares outstanding (thousands) 34,594 34,237 34,594 34,237
 

Balance sheet data at period end:
Assets $ 3,764,860 $ 4,028,339 (6.5 )% $ 3,764,860 $ 4,028,339 (6.5 )%
Loans and leases not covered by loss share 1,981,684 1,802,127 10.0 1,981,684 1,802,127 10.0
Allowance for loan and lease losses 38,862 39,124 (0.7 ) 38,862 39,124 (0.7 )
Loans covered by loss share 711,723 902,832 (21.2 ) 711,723 902,832 (21.2 )
Foreclosed assets covered by loss share 65,405 77,538 (15.6 ) 65,405 77,538 (15.6 )
FDIC loss share receivable 208,758 357,449 (41.6 ) 208,758 357,449 (41.6 )
Investment securities 414,898 499,244 (16.9 ) 414,898 499,244 (16.9 )
Goodwill 5,243 5,243 - 5,243 5,243 -
Other intangibles – net of amortization 5,946 7,977 (25.5 ) 5,946 7,977 (25.5 )
Deposits 2,808,986 3,170,483 (11.4 ) 2,808,986 3,170,483 (11.4 )
Repurchase agreements with customers 31,600 39,403 (19.8 ) 31,600 39,403 (19.8 )
Other borrowings 339,703 292,682 16.1 339,703 292,682 16.1
Subordinated debentures 64,950 64,950 - 64,950 64,950 -
Common stockholders’ equity 459,590 385,683 19.2 459,590 385,683 19.2
Net unrealized gains (losses) on investment securities AFS included in common stockholders’ equity

11,452

3,330

 

11,452

3,330

 
Loan and lease, including covered loans, to deposit ratio

95.89

%

85.32

%

95.89

%

85.32

%
 

Selected ratios:
Return on average assets** 2.04 % 5.24 % 1.97 % 3.63 %
Return on average common stockholders’ equity** 17.07 55.88 16.91 38.05
Average common equity to total average assets 11.95 9.38 11.66 9.55
Net interest margin – FTE** 5.84 5.80 5.91 5.71
Efficiency ratio 45.35 29.39 46.54 35.87
Net charge-offs to average loans and leases**(1)(2) 0.18 0.85 0.31 0.79
Nonperforming loans and leases to total loans and leases(1)

0.50

1.09

0.50

1.09
Nonperforming assets to total assets(1) 0.63 1.39 0.63 1.39
Allowance for loan and lease losses to total loans and leases(1)

1.96

2.17

 

1.96

2.17

 
 

Other information:
Non-accrual loans and leases(1) $ 9,832 $ 19,599 $ 9,832 $ 19,599
Accruing loans and leases – 90 days past due(1) - - - -
Troubled and restructured loans and leases(1) - - - -
ORE and repossessions(1) 13,898 36,348 13,898 36,348
Impaired covered loans 22,758 - 22,758 -
 
* 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.

Supplemental Quarterly Financial Data

(Dollars in Thousands, Except Per Share Amounts)

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

Earnings Summary:
Net interest income $ 32,768 $ 33,945 $ 36,083 $ 42,476 $ 44,336 $ 45,839 $ 43,833 $ 42,298
Federal tax (FTE) adjustment   2,447     2,341     2,318     2,235     2,256     2,210     2,288     2,151  
Net interest income (FTE) 35,215 36,286 38,401 44,711 46,592 48,049 46,121 44,449
Provision for loan and lease losses (4,300 ) (4,100 ) (2,250 ) (3,750 ) (1,500 ) (4,275 ) (3,076 ) (3,055 )
Non-interest income 25,183 18,646 12,990 75,058 16,071 12,964 13,810 15,710
Non-interest expense   (23,565 )   (25,274 )   (26,192 )   (35,200 )   (31,800 )   (29,339 )   (28,607 )   (27,282 )
Pretax income (FTE) 32,533 25,558 22,949 80,819 29,363 27,399 28,248 29,822
FTE adjustment (2,447 ) (2,341 ) (2,318 ) (2,235 ) (2,256 ) (2,210 ) (2,288 ) (2,151 )
Provision for income taxes (9,878 ) (6,303 ) (6,004 ) (28,380 ) (8,220 ) (7,604 ) (7,950 ) (8,584 )
Noncontrolling interest   17     17     3     13     17     (15 )   (1 )   5  
Net income available to common stockholders

$

20,225
 

$

16,931
 

$

14,630
 

$

50,217
 

$

18,904
 

$

17,570
 

$

18,009
 

$

19,092
 
 
Earnings per common share – diluted * $ 0.59 $ 0.49 $ 0.43 $ 1.46 $ 0.55 $ 0.51 $ 0.52 $ 0.55
 

Non-interest Income:

Service charges on deposit accounts
$ 4,002 $ 4,019 $ 3,838 $ 4,586 $ 4,734 $ 4,936 $ 4,693 $ 4,908

Mortgage lending income
1,024 1,495 681 634 815 1,147 1,101 1,328

Trust income
802 888 782 803 810 811 774 888

Bank owned life insurance income

580

574

568

575

585

580

576

567

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

906

1,252

1,998

2,923

2,861

2,359

2,305

2,035
Other loss share income, net 295 304 971 984 2,976 1,501 1,983 3,197
Gains (losses) on investment securities 570 226 152 199 638 (56 ) 1 402
Gains on sales of other assets 267 571 407 705 1,727 899 1,555 1,397
Gains on FDIC-assisted transactions 16,122 8,859 2,952 62,756 - - - -
Other   615     458     641     893     925     787     822     988  
Total non-interest income $ 25,183   $ 18,646   $ 12,990   $ 75,058   $ 16,071   $ 12,964   $ 13,810   $ 15,710  
 

Non-interest Expense:
Salaries and employee benefits $ 10,539 $ 12,351 $ 11,647 $ 14,817 $ 14,597 $ 15,202 $ 14,052 $ 14,574
Net occupancy expense 2,782 2,999 3,106 3,775 4,301 3,522 3,878 3,650
Other operating expenses 10,111 9,764 11,211 16,172 12,398 10,106 10,168 8,549
Amortization of intangibles   133     160     228     436     504     509     509     509  
Total non-interest expense $ 23,565   $ 25,274   $ 26,192   $ 35,200   $ 31,800   $ 29,339   $ 28,607   $ 27,282  
 

Allowance for Loan and Lease Losses:
Balance at beginning of period $ 40,176 $ 40,250 $ 40,230 $ 39,225 $ 39,124 $ 39,136 $ 39,169 $ 38,632
Net charge-offs (4,226 ) (4,120 ) (3,255 ) (3,851 ) (1,488 ) (4,242 ) (3,613 ) (2,825 )
Provision for loan and lease losses   4,300     4,100     2,250     3,750     1,500     4,275     3,076     3,055  
Balance at end of period $ 40,250   $ 40,230   $ 39,225   $ 39,124   $ 39,136   $ 39,169   $ 38,632   $ 38,862  
 

Selected Ratios:
Net interest margin - FTE** 5.31 % 5.35 % 5.61 % 5.80 % 5.90 % 6.05 % 5.98 % 5.84 %
Efficiency ratio 39.02 46.01 50.97 29.39 50.75 48.09 47.73 45.35
Net charge-offs to average loans and leases**(1)(2)

0.88

0.87

0.72

0.85

0.33

0.84

0.44

0.18
Nonperforming loans and leases to total loans and leases(1)

0.90

0.75

0.77

1.09

1.22

0.70

0.61

0.50
Nonperforming assets to total assets(1) 1.85 1.72 1.62 1.39 1.45 1.17 0.77 0.63
Allowance for loan and lease losses to total loans and leases(1)

2.13

2.17

2.17

2.17

2.10

2.08

2.04

1.96
Loans and leases past due 30 days or more, including past due non-accrual loans and leases, to total loans and leases(1)

1.90

2.02

2.19

2.47

1.89

1.56

0.86

0.75
 
* 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 June 30,   Six Months Ended June 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

$

1,361

$

1

0.44

%

$

3,178

$

25

3.16

%

$

1,094

$

3

0.58

%

$

2,092

$

28

2.66

%
Investment securities:
Taxable 82,434 705 3.44 131,223 1,057 3.23 84,170 1,420 3.39 86,977 1,484 3.44
Tax-exempt – FTE 337,208 6,127 7.31 340,696 6,368 7.50 343,573 12,644 7.40 346,103 12,972 7.56
Loans and leases – FTE 1,907,898 27,422 5.78 1,814,949 28,052 6.20 1,897,170 55,725 5.91 1,821,998 55,935 6.19
Covered loans   732,038   15,668 8.61   802,371   17,607 8.80   756,503   32,362 8.58   676,111   29,030 8.66
Total earning assets – FTE 3,060,939 49,923 6.56 3,092,417 53,109 6.89 3,082,510 102,154 6.66 2,933,281 99,449 6.84
Non-interest earning assets   704,404   751,287   700,967   665,309
Total assets $ 3,765,343 $ 3,843,704 $ 3,783,477 $ 3,598,590
 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Interest bearing liabilities:
Deposits:
Savings and interest bearing transaction

$

1,574,598

$

1,138

0.29

%

$

1,527,094

$

2,516

0.66

%

$

1,562,376

$

2,515

0.32

%

$

1,433,168

$

4,783

0.67

%

Time deposits of $100,000 or more
348,278 494 0.57 524,381 1,239 0.95 372,520 1,163 0.63 502,693 2,474 0.99
Other time deposits   455,629   679 0.60   581,600   1,436 0.99   475,043   1,548 0.66   522,541   2,715 1.05
Total interest bearing deposits 2,378,505 2,311 0.39 2,633,075 5,191 0.79 2,409,939 5,226 0.44 2,458,402 9,972 0.82
Repurchase agreements with customers

35,952

12

0.14

40,213

57

0.57

37,313

33

0.18

41,396

118

0.58
Other borrowings 285,210 2,691 3.79 294,042 2,718 3.71 292,142 5,391 3.71 295,683 5,389 3.68
Subordinated debentures   64,950   460 2.85   64,950   432 2.67   64,950   934 2.89   64,950   858 2.66
Total interest bearing liabilities 2,764,617 5,474 0.80 3,032,280 8,398 1.11 2,804,344 11,584 0.83 2,860,431 16,337 1.15
Non-interest bearing liabilities:
Non-interest bearing deposits 490,760 396,788 471,526 355,516
Other non-interest bearing liabilities   56,591   50,749   62,938   35,525
Total liabilities 3,311,968 3,479,817 3,338,808 3,251,472
Common stockholders’ equity 449,955 360,459 441,246 343,686
Noncontrolling interest   3,420   3,428   3,423   3,432
Total liabilities and stockholders’ equity

$

3,765,343

$

3,843,704

 

 

$

3,783,477

$

3,598,590

 

 
       
Net interest income – FTE $ 44,449 $ 44,711 $ 90,570 $ 83,112
Net interest margin – FTE 5.84 % 5.80 % 5.91 % 5.71 %

Copyright Business Wire 2010

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