Bank Of The Ozarks, Inc. Announces Third Quarter 2013 Earnings

Bank of the Ozarks, Inc. (NASDAQ:OZRK) today announced that net income for the quarter ended September 30, 2013 was $22.4 million, a 16.0% increase from $19.3 million for the third quarter of 2012. Diluted earnings per common share for the third quarter of 2013 were $0.61, a 10.9% increase from $0.55 for the third quarter of 2012.

For the nine months ended September 30, 2013, net income totaled $62.7 million, an 11.3% increase from net income of $56.4 million for the first nine months of 2012. Diluted earnings per common share for the first nine months of 2013 were $1.74, a 7.4% increase from $1.62 for the first nine months of 2012.

On July 31, 2013 the Company completed its acquisition of The First National Bank of Shelby (“FNB Shelby”) in Shelby, North Carolina. This acquisition resulted in a bargain purchase gain, net of acquisition and conversion costs, of approximately $0.2 million after applicable taxes, or slightly less than $0.01 of diluted earnings per common share, for the third quarter and first nine months of 2013.

The Company’s annualized returns on average assets and average common stockholders’ equity for the third quarter of 2013 were 1.99% and 15.40%, respectively, decreasing from 2.05% and 16.40%, respectively, for the third quarter of 2012. Annualized returns on average assets and average common stockholders’ equity for the first nine months of 2013 were 2.05% and 15.55%, respectively, compared to 2.00% and 16.73%, respectively, for the first nine months of 2012.

Loans and leases, excluding loans covered by FDIC loss share agreements (“covered loans”) and purchased loans not covered by loss share (“purchased non-covered loans”), were $2.52 billion at September 30, 2013, a 24.2% increase from $2.03 billion at September 30, 2012. Including covered loans and purchased non-covered loans, total loans and leases were $3.33 billion at September 30, 2013, a 24.0% increase from $2.69 billion at September 30, 2012.

In commenting on these results, George Gleason, Chairman and Chief Executive Officer, stated, “We are pleased to report our excellent third quarter results. Highlights of the quarter included significant expansion in North Carolina with the FNB Shelby acquisition, stellar asset quality and another quarter of excellent loan and lease growth. Our capabilities to generate loan and lease growth have been clearly evident this year. Our balance of loans and leases outstanding, excluding covered loans and purchased non-covered loans, increased $79 million in the quarter just ended and $407 million for the first three quarters this year. Our unfunded balance of closed loans increased $196 million during the third quarter, growing to $1.13 billion at September 30, 2013 compared to $935 million at June 30, 2013 and $769 million at December 31, 2012.”

Deposits were $3.65 billion at September 30, 2013, a 26.4% increase compared to $2.89 billion at September 30, 2012 and a 22.5% increase compared to $2.98 billion at June 30, 2013.

Total assets were $4.71 billion at September 30, 2013, a 23.1% increase compared to $3.82 billion at September 30, 2012 and a 16.4% increase compared to $4.04 billion at June 30, 2013.

Common stockholders’ equity was $608 million at September 30, 2013, a 27.3% increase from $478 million at September 30, 2012 and a 14.5% increase from $531 million at June 30, 2013. Book value per common share was $16.57 at September 30, 2013, a 20.2% increase from $13.78 at September 30, 2012 and a 10.5% increase from $14.99 at June 30, 2013. Changes in common stockholders’ equity and book value per common share reflect earnings, dividends paid, stock option and stock grant transactions, stock consideration issued in connection with the Company’s acquisitions 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 was 12.92% at September 30, 2013, an increase from 12.50% at September 30, 2012, but a decrease from 13.13% at June 30, 2013. Its ratio of tangible common stockholders’ equity to tangible total assets was 12.55% at September 30, 2013, an increase from 12.25% at September 30, 2012, but a decrease from 12.90% at June 30, 2013.

NET INTEREST INCOME

Net interest income for the third quarter of 2013 was $50.6 million, an increase of 13.9% from $44.4 million for the third quarter of 2012 and an increase of 16.5% from $43.5 million for the second quarter of 2013. Net interest margin, on a fully taxable equivalent (“FTE”) basis, decreased 42 basis points to 5.55% in the third quarter of 2013 compared to 5.97% in the third quarter of 2012, and decreased one basis point compared to 5.56% in the second quarter of 2013. Average earning assets increased to $3.78 billion for the third quarter of 2013 compared to $3.10 billion for the third quarter of 2012 and compared to $3.29 billion for the second quarter of 2013.

Net interest income for the first nine months of 2013 was $138.2 million, a 5.9% increase from $130.6 million for the first nine months of 2012. The Company’s net interest margin (FTE) for the first nine months of 2013 was 5.63%, a 30 basis point decrease from 5.93% for the first nine months of 2012. Average earning assets increased to $3.43 billion for the first nine months of 2013 compared to $3.09 billion for the first nine months of 2012.

NON-INTEREST INCOME

Non-interest income for the third quarter of 2013 increased 24.2% to $18.0 million from $14.5 million for the third quarter of 2012, but decreased 5.2% from $19.0 million for the second quarter of 2013. Non-interest income for the first nine months of 2013 increased 21.2% to $53.3 million from $44.0 million for the first nine months of 2012. The Company’s results for the third quarter and first nine months of 2013 included a $1.06 million bargain purchase gain from the FNB Shelby acquisition. The Company’s results for the third quarter and first nine months of 2012 included no acquisitions or bargain purchase gain.

Service charges on deposit accounts increased 16.3% to a record $5.82 million in the third quarter of 2013 from $5.00 million in the third quarter of 2012. Service charges on deposit accounts were $15.61 million in the first nine months of 2013, a 6.9% increase from $14.60 million for the first nine months of 2012.

Mortgage lending income decreased 23.7% to $1.28 million in the third quarter of 2013 from $1.67 million in the third quarter of 2012. Mortgage lending income was $4.66 million in the first nine months of 2013, a 13.6% increase from $4.10 million in the first nine months of 2012.

Trust income increased 22.5% to a record of $1.06 million in the third quarter of 2013 from $0.87 million in the third quarter of 2012. Trust income was $2.81 million in the first nine months of 2013, an 11.1% increase from $2.53 million in the first nine 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 $1.40 million in the third quarter of 2013, a decrease of 17.8% compared to $1.70 million in the third quarter of 2012. For the first nine months of 2013, income from accretion of the Company’s FDIC loss share receivable, net of amortization of the Company’s FDIC clawback payable, was $6.27 million, an increase of 3.8% compared to $6.04 million in the first nine months of 2012.

Other income from loss share and purchased non-covered loans was $2.48 million in the third quarter of 2013, an increase of 9.4% from $2.27 million in the third quarter of 2012, but a decrease of 32.7% from $3.69 million in the second quarter of 2013. For the first nine months of 2013, other income from loss share and purchased non-covered loans was $8.33 million, an increase of 11.8% from $7.45 million in the first nine months of 2012.

Net gains on sales of other assets were $2.50 million in the third quarter of 2013 compared to $1.43 million in the third quarter of 2012 and $3.11 million in the second quarter of 2013. Net gains on sales of other assets were $7.56 million in the first nine months of 2013 compared to $4.38 million in the first nine months of 2012.

NON-INTEREST EXPENSE

Non-interest expense for the third quarter of 2013 increased 12.3% to $32.2 million compared to $28.7 million in the third quarter of 2012. Non-interest expense for the first nine months of 2013 was $91.3 million, an 8.0% increase from $84.6 million in the first nine months of 2012. Non-interest expense for the third quarter and first nine months of 2013 included pretax acquisition and conversion costs totaling approximately $1.37 million as a result of the FNB Shelby acquisition. The Company had no acquisition and conversion costs during the third quarter and first nine months of 2012.

The Company’s efficiency ratio for the third quarter of 2013 improved to 45.5% compared to 47.0% for the third quarter of 2012 and 46.3% for the second quarter of 2013. The Company’s efficiency ratio improved to 46.2% for the first nine months of 2013 compared to 46.7% for the first nine months of 2012.

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 September 30, 2013, the carrying value of covered loans was $409 million, foreclosed assets covered by loss share was $40 million and the FDIC loss share receivable was $90 million. At September 30, 2012, the carrying value of covered loans was $653 million, foreclosed assets covered by loss share was $58 million and the FDIC loss share receivable was $175 million.

Purchased non-covered loans include a small volume of non-covered loans acquired in FDIC-assisted acquisitions and loans acquired in the December 31, 2012 acquisition of Genala Banc, Inc. and the July 31, 2013 acquisition of FNB Shelby. Purchased non-covered loans that contain evidence of credit deterioration on the date of purchase are initially recorded at fair value and are presented in the Company’s financial reports with a carrying value equal to the net present value of expected future proceeds. Other purchased non-covered loans are initially recorded at fair value on the date of purchase and are presented in the Company’s financial reports at their initial fair value, adjusted for subsequent advances, pay downs, amortization or accretion of any premium or discount on purchase, charge-offs and any other adjustments to carrying value. The carrying value of purchased non-covered loans was $399 million at September 30, 2013 compared to $2 million at September 30, 2012 and $31 million at June 30, 2013.

Excluding covered loans and purchased non-covered loans, nonperforming loans and leases as a percent of total loans and leases decreased to 0.41% at September 30, 2013 compared to 0.43% at September 30, 2012 and 0.66% at June 30, 2013.

Excluding covered loans, purchased non-covered loans and foreclosed assets covered by loss share, nonperforming assets as a percent of total assets decreased to 0.47% at September 30, 2013 compared to 0.59% at September 30, 2012 and 0.66% at June 30, 2013.

Excluding covered loans and purchased non-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 decreased to 0.54% at September 30, 2013 compared to 0.61% as of September 30, 2012 and 0.74% at June 30, 2013.

The Company’s net charge-offs for the third quarter of 2013 decreased to $1.5 million compared to $3.3 million for the third quarter for 2012 and $1.7 million for the second quarter of 2013. The Company’s net charge-offs for the third quarter of 2013 included $0.6 million for non-covered loans and leases and $0.9 million for covered loans. The Company’s net charge-offs for the third quarter of 2012 included $1.6 million for non-covered loans and leases and $1.7 million for covered loans. The Company’s net charge-offs for the second quarter of 2013 included $0.6 million for non-covered loans and leases and $1.1 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 0.09% for the third quarter of 2013 compared to 0.32% for the third quarter of 2012 and 0.11% for the second quarter of 2013. The Company’s annualized net charge-off ratio for all loans and leases, including covered loans, improved to 0.19% for the third quarter of 2013 compared to 0.48% for the third quarter of 2012 and 0.25% for the second quarter of 2013.

The Company’s net charge-offs for the first nine months of 2013 decreased to $6.3 million compared to $9.7 million for the first nine months of 2012. The Company’s net charge-offs for the first nine months of 2013 included $2.3 million for non-covered loans and leases and $4.0 million for covered loans. The Company’s net charge-offs for the first nine months of 2012 included $4.5 million for non-covered loans and leases and $5.2 million for covered loans.

The Company’s annualized net charge-off ratio for its non-covered loans and leases improved to 0.13% for the first nine months of 2013 compared to 0.31% for the first nine months of 2012. The Company’s annualized net charge-off ratio for all loans and leases, including covered loans, improved to 0.29% for the first nine months of 2013 compared to 0.49% for the first nine months of 2012.

For the third quarter of 2013, the Company’s provision for loan and lease losses increased to $3.8 million, which included $2.9 million for non-covered loans and leases and $0.9 million for covered loans. For the third quarter of 2012, the Company’s provision for loan and lease losses was $3.1 million, which included $1.4 million for non-covered loans and leases and $1.7 million for covered loans. For the second quarter of 2013, the Company’s provision for loan and lease losses was $2.7 million, which included $1.6 million for non-covered loans and leases and $1.1 million for covered loans.

For the first nine months of 2013, the Company’s provision for loan and lease losses was $9.2 million, which included $5.2 million for non-covered loans and leases and $4.0 million for covered loans. For the first nine months of 2012, the Company’s provision for loan and lease losses was $9.2 million, which included $4.0 million for non-covered loans and leases and $5.2 million for covered loans.

The Company’s allowance for loan and lease losses was $41.7 million, or 1.65% of total loans and leases, excluding covered loans and purchased non-covered loans, at September 30, 2013, compared to $38.7 million, or 1.90% of total loans and leases, excluding covered loans and purchased non-covered loans, at September 30, 2012 and $39.4 million, or 1.61% of total loans and leases, excluding covered loans and purchased non-covered loans, at June 30, 2013. The Company had no allowance for covered loans or purchased non-covered loans at September 30, 2013, September 30, 2012 or June 30, 2013.

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, October 11, 2013. 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 1-888-287-5563 up to ten minutes prior to the beginning of the call 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 1-888-203-1122 in the United States and Canada or 719-457-0820 internationally. The passcode for this telephone playback is 9087926. 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 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 or traditional acquisitions; 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 conditions from current political stalemates in the U.S. Congress resulting in possible monetary defaults by the U. S. Government on its monetary obligations, and the effect of any such conditions or results 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, strengthen the capital of financial institutions, 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 2012 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 131 offices, including 66 Arkansas offices, 28 Georgia offices, 15 North Carolina offices, 13 Texas offices, four Florida offices, three Alabama offices and one office each in South Carolina and New York. 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,  
 

2013
       

2012
       

%Change
   

2013
       

2012
       

%Change
 

Income statement data:
               
Net interest income $ 50,633 $ 44,444 13.9 % $ 138,237 $ 130,576 5.9 %
Provision for loan and lease losses 3,818 3,080 24.0 9,212 9,212 -
Non-interest income 18,000 14,491 24.2 53,344 44,012 21.2
Non-interest expense 32,208 28,682 12.3 91,341 84,571 8.0
Net income available to common stockholders 22,350 19,275 16.0 62,737 56,377 11.3
 

Common stock data:
Net income per share – diluted $ 0.61 $ 0.55 10.9 % $ 1.74 $ 1.62 7.4 %
Net income per share – basic 0.62 0.56 10.7 1.76 1.63 8.0
Cash dividends per share 0.19 0.13 46.2 0.51 0.36 41.7
Book value per share 16.57 13.78 20.2 16.57 13.78 20.2
Diluted shares outstanding (thousands) 36,648 34,963 35,994 34,872
End of period shares outstanding (thousands) 36,702 34,665 36,702 34,665
 

Balance sheet data at period end:
Assets $ 4,706,465 $ 3,823,017 23.1 % $ 4,706,465 $ 3,823,017 23.1 %
Loans and leases 2,522,589 2,030,832 24.2 2,522,589 2,030,832 24.2
Purchased loans not covered by loss share 399,058 2,173 18,264.4 399,058 2,173 18,264.4
Loans covered by loss share 409,319 652,798 (37.3 ) 409,319 652,798 (37.3 )
Allowance for loan and lease losses 41,660 38,672 7.7 41,660 38,672 7.7
Foreclosed assets covered by loss share 40,452 57,632 (29.8 ) 40,452 57,632 (29.8 )
FDIC loss share receivable 89,642 174,899 (48.7 ) 89,642 174,899 (48.7 )
Investment securities 671,393 429,935 56.2 671,393 429,935 56.2
Goodwill 5,243 5,243 - 5,243 5,243 -
Other intangibles – net of amortization 14,796 5,437 172.1 14,796 5,437 172.1
Deposits 3,654,686 2,891,735 26.4 3,654,686 2,891,735 26.4
Repurchase agreements with customers 50,254 32,511 54.6 50,254 32,511 54.6
Other borrowings 280,905 280,771 0.1 280,905 280,771 0.1
Subordinated debentures 64,950 64,950 - 64,950 64,950 -
Common stockholders’ equity 608,236 477,851 27.3 608,236 477,851 27.3
Net unrealized gains (losses) on investment securities AFS included in common stockholders’ equity

(453

)

12,960

 

(453

)

12,960
Loan and lease, including covered loans and purchased non-covered loans, to deposit ratio

91.14

%

92.88

%

91.14

%

92.88

%
 

Selected ratios:
Return on average assets* 1.99 % 2.05 % 2.05 % 2.00 %
Return on average common stockholders’ equity* 15.40 16.40 15.55 16.73
Average common equity to total average assets 12.94 12.50 13.16 11.94
Net interest margin – FTE* 5.55 5.97 5.63 5.93
Efficiency ratio 45.49 47.00 46.17 46.69
Net charge-offs to average loans and leases*(1) 0.09 0.32 0.13 0.31
Nonperforming loans and leases to total loans and leases(2)

0.41

0.43

0.41

0.43
Nonperforming assets to total assets(2) 0.47 0.59 0.47 0.59
Allowance for loan and lease losses to total loans and leases(2)

1.65

1.90

1.65

1.90
 

Other information:
Non-accrual loans and leases(2) $ 10,405 $ 8,882 $ 10,405 $ 8,882
Accruing loans and leases – 90 days past due(2) - - - -
Troubled and restructured loans and leases(2) - - - -
ORE and repossessions(2) 11,647 13,828 11,647 13,828
Impaired covered loans 52,575 31,002 52,575 31,002
Impaired purchased non-covered loans - - - -
 
*Ratios for interim periods annualized based on actual days.
(1) Excludes covered loans and net charge-offs related to covered loans.

(2) Excludes purchased non-covered loans, covered loans and covered foreclosed assets, except for their inclusion in total assets.
 

 

Bank of the Ozarks, Inc.

Supplemental Quarterly Financial Data

(Dollars in Thousands, Except Per Share Amounts)

Unaudited
 
      12/31/11         3/31/12         6/30/12         9/30/12         12/31/12         3/31/13         6/30/13         9/30/13  

Earnings Summary:
                             
Net interest income $ 45,839 $ 43,833 $ 42,298 $ 44,444 $ 43,771 $ 44,139 $ 43,465 $ 50,633
Federal tax (FTE) adjustment     2,210         2,288         2,151         2,087         2,009         2,020         2,076         2,161    
Net interest income (FTE) 48,049 46,121 44,449 46,531 45,780 46,159 45,541 52,794
Provision for loan and lease losses (4,275 ) (3,076 ) (3,055 ) (3,080 ) (2,533 ) (2,728 ) (2,666 ) (3,818 )
Non-interest income 12,964 13,810 15,710 14,491 18,848 16,357 18,987 18,000
Non-interest expense     (29,339 )       (28,607 )       (27,282 )       (28,682 )       (29,891 )       (29,231 )       (29,901 )       (32,208 )  
Pretax income (FTE) 27,399 28,248 29,822 29,260 32,204 30,557 31,961 34,768
FTE adjustment (2,210 ) (2,288 ) (2,151 ) (2,087 ) (2,009 ) (2,020 ) (2,076 ) (2,161 )
Provision for income taxes (7,604 ) (7,950 ) (8,584 ) (7,883 ) (9,519 ) (8,526 ) (9,506 ) (10,224 )
Noncontrolling interest     (15 )       (1 )       5         (15 )       (9 )       (11 )       8         (33 )  
Net income available to common stockholders  

$

17,570
     

$

18,009
     

$

19,092
     

$

19,275
     

$

20,667
     

$

20,000
     

$

20,387
     

$

22,350
   
 
Earnings per common share – diluted $ 0.51 $ 0.52 $ 0.55 $ 0.55 $ 0.59 $ 0.56 $ 0.57 $ 0.61
 

Non-interest Income:
Service charges on deposit accounts $ 4,936 $ 4,693 $ 4,908 $ 5,000 $ 4,799 $ 4,722 $ 5,074 $ 5,817
Mortgage lending income 1,147 1,101 1,328 1,672 1,483 1,741 1,643 1,276
Trust income 811 774 888 865 928 883 865 1,060
Bank owned life insurance income 580 576 567 598 1,027 1,083 1,104 1,179
Accretion of FDIC loss share receivable, net of amortization of FDIC clawback payable

2,359

2,305

2,035

1,699

1,336

2,392

2,481

1,396
Other income from loss share and purchased non-covered loans, net

1,501

1,983

3,197

2,270

3,194

2,155

3,689

2,484
Gains (losses) on investment securities (56 ) 1 402 - 55 156 - -
Gains on sales of other assets 899 1,555 1,397 1,425 2,431 1,974 3,110 2,501
Gains on merger and acquisition transactions

-

-

-

-

2,403

-

-

1,061
Other     787         822         988         962         1,192         1,251         1,021         1,226    
Total non-interest income   $ 12,964       $ 13,810       $ 15,710       $ 14,491       $ 18,848       $ 16,357       $ 18,987       $ 18,000    
 

Non-interest Expense:
Salaries and employee benefits $ 15,202 $ 14,052 $ 14,574 $ 15,040 $ 15,362 $ 15,694 $ 15,294 $ 16,456
Net occupancy expense 3,522 3,878 3,650 4,105 4,160 4,514 4,370 4,786
Other operating expenses 10,106 10,168 8,549 9,028 9,860 8,455 9,669 10,178
Amortization of intangibles     509         509         509         509         509         568         568         788    
Total non-interest expense   $ 29,339       $ 28,607       $ 27,282       $ 28,682       $ 29,891       $ 29,231       $ 29,901       $ 32,208    
 

Allowance for Loan and Lease Losses:
Balance at beginning of period $ 39,136 $ 39,169 $ 38,632 $ 38,862 $ 38,672 $ 38,738 $ 38,422 $ 39,373
Net charge-offs (4,242 ) (3,613 ) (2,825 ) (3,270 ) (2,467 ) (3,044 ) (1,715 ) (1,531 )
Provision for loan and lease losses     4,275         3,076         3,055         3,080         2,533         2,728         2,666         3,818    
Balance at end of period   $ 39,169       $ 38,632       $ 38,862       $ 38,672       $ 38,738       $ 38,422       $ 39,373       $ 41,660    
 

Selected Ratios:
Net interest margin - FTE* 6.05 % 5.98 % 5.84 % 5.97 % 5.84 % 5.83 % 5.56 % 5.55 %
Efficiency ratio 48.09 47.73 45.35 47.00 46.25 46.76 46.34 45.49
Net charge-offs to average loans and leases*(1)

0.84

0.44

0.18

0.32

0.28

0.19

0.11

0.09
Nonperforming loans and leases to total loans and leases(2)

0.70

0.60

0.49

0.43

0.43

0.40

0.66

0.41
Nonperforming assets to total assets(2) 1.17 0.76 0.63 0.59 0.57 0.50 0.66 0.47
Allowance for loan and lease losses to total loans and leases(2)

2.08

2.04

1.96

1.90

1.83

1.78

1.61

1.65
Loans and leases past due 30 days or more, including past due non-accrual loans and leases, to total loans and leases(2)

1.53

0.83

0.74

0.61

0.73

0.56

0.74

0.54
 
*Ratios for interim periods annualized based on actual days.
(1) Excludes covered loans and net charge-offs related to covered loans.
(2) Excludes purchased non-covered loans, covered loans and covered foreclosed assets, except for their inclusion in total assets.
 

 

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,
2013     2012 2013     2012
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

$

1,223

$

11

3.63

%

$

1,226

$

2

0.61

%

$

1,135

$

21

2.47

%

$

1,138

$

5

0.59

%
Investment securities:
Taxable 235,216 1,988 3.35 85,845 757 3.51 176,793 4,456 3.37 84,732 2,177 3.43
Tax-exempt – FTE 357,438 6,163 6.84 325,756 5,945 7.26 348,054 17,844 6.85 337,591 18,589 7.36
Loans and leases – FTE 2,459,427 33,187 5.35 2,000,594 29,437 5.85 2,276,801 93,794 5.51 1,929,490 85,006 5.88
Purchased non-covered loans 283,364 5,653 7.92 2,419 55 9.05 120,339 7,366 8.18 3,218 211 8.76
Covered loans   438,913   10,501 9.49   682,506   15,347 8.95   507,708   34,845 9.18   731,658   47,710 8.69
Total earning assets – FTE 3,775,581 57,503 6.04 3,098,346 51,543 6.62 3,430,830 158,326 6.17 3,087,827 153,698 6.65
Non-interest earning assets   672,447   640,824   667,161   680,379

Total assets
$ 4,448,028 $ 3,739,170 $ 4,097,991 $ 3,768,206
 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Interest bearing liabilities:
Deposits:
Savings and interest bearing transaction

$

1,843,060

$

913

0.20

%

$

1,559,520

$

1,002

0.26

%

$

1,721,794

$

2,583

0.20

%

$

1,561,417

$

3,517

0.30

%

Time deposits of $100,000 or more

430,586
296 0.27 332,122 377 0.45 365,846 828 0.30 358,956 1,539 0.57
Other time deposits   465,759   328 0.28   422,632   533 0.50   432,436   1,046 0.32   457,445   2,082 0.61
Total interest bearing deposits 2,739,405 1,537 0.22 2,314,274 1,912 0.33 2,520,076 4,457 0.24 2,377,818 7,138 0.40
Repurchase agreements with customers

41,879

7

0.07

32,288

7

0.09

35,244

21

0.08

35,626

40

0.15
Other borrowings 308,875 2,732 3.51 301,673 2,628 3.47 292,221 8,064 3.69 295,342 8,020 3.63
Subordinated debentures   64,950   433 2.64   64,950   465 2.85   64,950   1,290 2.65   64,950   1,398 2.88
Total interest bearing liabilities 3,155,109 4,709 0.59 2,713,185 5,012 0.73 2,912,491 13,832 0.63 2,773,736 16,596 0.80
Non-interest bearing liabilities:
Non-interest bearing deposits 673,215 498,529 601,146 480,593
Other non-interest bearing liabilities   40,589   56,588   41,431   60,411
Total liabilities 3,868,913 3,268,302 3,555,068 3,314,740
Common stockholders’ equity 575,647 467,449 539,470 450,044
Noncontrolling interest   3,468   3,419   3,453   3,422
Total liabilities and stockholders’ equity

$

4,448,028

$

3,739,170

$

4,097,991

$

3,768,206

 

 
       
Net interest income – FTE $ 52,794 $ 46,531 $ 144,494 $ 137,102
Net interest margin – FTE 5.55 % 5.97 % 5.63 % 5.93 %
 

Copyright Business Wire 2010

More from Press Releases

NFL Pushes for Regulation Following Supreme Court's Sports Gambling Ruling

NFL Pushes for Regulation Following Supreme Court's Sports Gambling Ruling

21st Century Fox Scoops Up Local News Stations

21st Century Fox Scoops Up Local News Stations

Walmart CEO: 'We Are Transforming Globally' With Flipkart

Walmart CEO: 'We Are Transforming Globally' With Flipkart

Three-Part FREE Webinar Series

Three-Part FREE Webinar Series

March 24 Full-Day Course Offering: Professional Approach to Trading SPX

March 24 Full-Day Course Offering: Professional Approach to Trading SPX