Bank of the Ozarks (the “Bank”) (NASDAQ: OZRK) today announced
that net income for the first quarter of 2018 was $113.1 million, a
26.9% increase from $89.2 million for the first quarter of 2017.
Diluted earnings per common share for the first quarter of 2018
were $0.88, a 20.5% increase from $0.73 for the first quarter of
2017.
The Bank’s annualized returns on average assets, average common
stockholders’ equity and average tangible common stockholders’
equity for the first quarter of 2018 were 2.16%, 13.17% and 16.53%,
respectively, compared to 1.93%, 12.80% and 17.17%, respectively,
for the first quarter of 2017. The calculation of the Bank’s return
on average tangible common stockholders’ equity and the
reconciliation to generally accepted accounting principles (“GAAP”)
are included in the schedules accompanying this release.
George Gleason, Chairman and Chief Executive Officer, stated,
“We are very pleased to report our results for the first quarter of
2018, including record net interest income, an annualized return on
average assets of 2.16%, $941 million growth in the funded balance
of non-purchased loans, a 4.69% net interest margin and excellent
asset quality metrics.”
KEY BALANCE SHEET
METRICS
Total loans, including purchased loans, were $16.61 billion at
March 31, 2018, a 12.2% increase from $14.80 billion at March 31,
2017. Non-purchased loans, which exclude loans acquired in previous
acquisitions, were $13.67 billion at March 31, 2018, a 33.8%
increase from $10.22 billion at March 31, 2017. Purchased loans,
which consist of loans acquired in previous acquisitions, were
$2.93 billion at March 31, 2018, a 35.9% decrease from $4.58
billion at March 31, 2017. The unfunded balance of closed loans
totaled $12.55 billion at March 31, 2018, an 11.5% increase from
$11.26 billion at March 31, 2017, but a 4.9% decrease from $13.19
billion at December 31, 2017.
Deposits were $17.83 billion at March 31, 2018, a 13.5% increase
from $15.71 billion at March 31, 2017. Total assets were $22.04
billion at March 31, 2018, a 15.1% increase from $19.15 billion at
March 31, 2017.
Common stockholders’ equity was $3.53 billion at March 31, 2018,
a 22.7% increase from $2.87 billion at March 31, 2017. Tangible
common stockholders’ equity was $2.82 billion at March 31, 2018, a
30.9% increase from $2.15 billion at March 31, 2017. Book value per
common share was $27.42 at March 31, 2018, a 16.0% increase from
$23.63 at March 31, 2017. Tangible book value per common share was
$21.93 at March 31, 2018, a 23.8% increase from $17.72 at March 31,
2017. The calculations of the Bank’s tangible common stockholders’
equity and tangible book value per common share and the
reconciliations to GAAP are included in the schedules accompanying
this release.
The Bank’s ratio of total common stockholders’ equity to total
assets was 16.00% at March 31, 2018 compared to 15.00% at March 31,
2017. Its ratio of total tangible common stockholders’ equity to
total tangible assets was 13.22% at March 31, 2018 compared to
11.69% at March 31, 2017. The calculation of the Bank’s ratio of
total tangible common stockholders’ equity to total tangible assets
and the reconciliation to GAAP are included in the schedules
accompanying this release.
NET INTEREST INCOME
Net interest income for the first quarter of 2018 was a record
$217.8 million, a 14.2% increase from $190.8 million for the first
quarter of 2017. Net interest margin, on a fully taxable equivalent
(“FTE”) basis, was 4.69% for the first quarter of 2018, a decrease
of 19 basis points from 4.88% for the first quarter of 2017.
Average earning assets were $18.92 billion for the first quarter of
2018, a 17.2% increase from $16.14 billion for the first quarter of
2017.
NON-INTEREST INCOME
Non-interest income for the first quarter of 2018 decreased 1.2%
to $28.7 million compared to $29.1 million for the first quarter of
2017. The Bank’s non-interest income for the first quarter of 2018
included $2.73 million of tax-exempt bank owned life insurance
(“BOLI”) death benefits, which increased the Bank’s diluted
earnings per common share by $0.02. There were no such benefits in
the first quarter of 2017. The Bank’s service charges on deposit
accounts declined from $11.3 million for the first quarter of 2017
to $9.5 million for the first quarter of 2018 primarily due to the
Durbin Amendment’s impact on the Bank’s interchange revenue
effective as of July 1, 2017. The Bank’s mortgage lending income
declined from $1.6 million for the first quarter of 2017 to $0.5
million for the first quarter of 2018. This was a result of the
Bank’s decision in December 2017 to exit the secondary market
mortgage lending business and the substantial wind down of that
business in the quarter just ended. The Bank expects only a nominal
amount of mortgage lending income in the second quarter of 2018 and
none thereafter.
NON-INTEREST EXPENSE
Non-interest expense for the first quarter of 2018 increased
19.9% to $93.8 million compared to $78.3 million for the first
quarter of 2017.
The Bank’s efficiency ratio (non-interest expense divided by the
sum of net interest income FTE and non-interest income) for the
first quarter of 2018 was 37.9% compared to 35.0% for the first
quarter of 2017.
ASSET QUALITY, CHARGE-OFFS AND
ALLOWANCE
Excluding purchased loans, the Bank’s ratio of nonperforming
loans as a percent of total loans was 0.09% at March 31, 2018
compared to 0.11% at March 31, 2017.
Excluding purchased loans, the Bank’s ratio of nonperforming
assets as a percent of total assets was 0.16% at March 31, 2018
compared to 0.25% at March 31, 2017.
Excluding purchased loans, the Bank’s ratio of loans past due 30
days or more, including past due non-accrual loans, to total loans
was 0.14% at March 31, 2018 compared to 0.16% at March 31,
2017.
The Bank’s annualized net charge-off ratio for non-purchased
loans was 0.04% for the first quarter of 2018 compared to 0.05% for
the first quarter of 2017. The Bank’s annualized net charge-off
ratio for purchased loans was 0.05% for the first quarter of 2018
compared to 0.16% for the first quarter of 2017. The Bank’s
annualized net charge-off ratio for all loans was 0.04% for the
first quarter of 2018 compared to 0.09% for the first quarter of
2017.
The Bank’s allowance for loan losses for its non-purchased loans
was $96.5 million, or 0.71% of total non-purchased loans, at March
31, 2018 compared to $76.6 million, or 0.75% of total non-purchased
loans, at March 31, 2017 and $92.5 million, or 0.73% of total
non-purchased loans, at December 31, 2017. The Bank had $1.6
million of allowance for loan losses for its purchased loans at
March 31, 2018 and 2017 and at December 31, 2017.
MANAGEMENT’S COMMENTS, CONFERENCE CALL,
TRANSCRIPT AND FILINGS
In connection with this release, the Bank released management’s
comments on the results for the quarter just ended. Management will
conduct a conference call to take questions on these quarterly
results and management’s comments on the first quarter at 10:00
a.m. CT (11:00 a.m. ET) on Thursday, April 12, 2018. Interested
parties may listen to this call by dialing 1-844-818-5110 (U.S. and
Canada) or 210-229-8841 (internationally) and asking for the Bank
of the Ozarks conference call. A recorded playback of the call will
be available for one week following the call at 1-855-859-2056
(U.S. and Canada) or 404-537-3406 (internationally). The passcode
for this playback is 9078203. The call will be available live or in
a recorded version on the Bank’s Investor Relations website at
ir.bankozarks.com under “Company News.” The Bank will also provide
a transcript of the conference call on its Investor Relations
website.
The Bank files annual, quarterly and current reports, proxy
materials, and other information required by the Securities and
Exchange Act of 1934 with the Federal Deposit Insurance Corporation
(“FDIC”), copies of which are available electronically at the
FDIC’s website at https://efr.fdic.gov/fcxweb/efr/index.html and
are also available on the Bank’s Investor Relations website at
http://ir.bankozarks.com.
NON-GAAP FINANCIAL
MEASURES
This release contains certain non-GAAP financial measures. The
Bank uses these non-GAAP financial measures, specifically return on
average tangible common stockholders’ equity, tangible book value
per common share, total tangible common stockholders’ equity and
the ratio of total tangible common stockholders’ equity to total
tangible assets, as important measures of the strength of its
capital and its ability to generate earnings on its tangible
capital invested by its shareholders. These measures typically
adjust GAAP financial measures to exclude intangible assets.
Management believes presentation of these non-GAAP financial
measures provides useful supplemental information which contributes
to a proper understanding of the financial results and capital
levels of the Bank. These non-GAAP disclosures should not be viewed
as a substitute for financial results determined in accordance with
GAAP, nor are they necessarily comparable to non-GAAP performance
measures that may be presented by other banks. Reconciliations of
these non-GAAP financial measures to the most directly comparable
GAAP financial measures are included in the tables at the end of
this release under the caption “Reconciliation of Non-GAAP
Financial Measures.”
FORWARD-LOOKING
STATEMENTS
This release and other communications by the Bank include
certain “forward-looking statements” regarding the Bank’s plans,
expectations, thoughts, beliefs, estimates, goals and outlook for
the future that are intended to be covered by the Private
Securities Litigation Reform Act of 1995. Forward-looking
statements are based on management’s expectations as well as
certain assumptions and estimates made by, and information
available to, management at the time. Those statements are not
guarantees of future results or performance and are subject to
certain known and unknown risks, uncertainties and other factors
that may cause actual results to differ materially from those
expressed in, or implied by, such forward-looking statements. These
risks, uncertainties and other factors include, but are not limited
to: potential delays or other problems implementing the Bank’s
growth, expansion and acquisition strategies 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 and/or close additional acquisitions; problems with, or
additional expenses relating to, integrating acquisitions; the
inability to realize expected cost savings and/or synergies from
acquisitions; problems with managing acquisitions; the effect of
the announcements of any future acquisition on customer
relationships and operating results; the availability and access to
capital; possible downgrades in the Bank’s credit ratings or
outlook which could increase the costs or availability of funding
from capital markets; the ability to attract new or retain existing
or acquired deposits or to retain or grow loans, 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 Bank’s
net interest margin; general economic, unemployment, credit market
and real estate market conditions, and the effect of such
conditions on the creditworthiness of borrowers, collateral values,
the value of investment securities and asset recovery values;
failure to receive approval of our pending applications for change
in accounting methods with the Internal Revenue Service; changes in
legal, financial and/or regulatory requirements; recently enacted
and potential legislation and regulatory actions and the costs and
expenses to comply with new and/or existing legislation and
regulatory actions; changes in U.S. government monetary and fiscal
policy; FDIC special assessments or changes to regular assessments;
the ability to keep pace with technological changes, including
changes regarding maintaining cybersecurity; the impact of failure
in, or breach of, our operational or security systems or
infrastructure, or those of third parties with whom we do business,
including as a result of cyber-attacks or an increase in the
incidence or severity of fraud, illegal payments, security breaches
or other illegal acts impacting the Bank or its customers; adoption
of new accounting standards or changes in existing standards; and
adverse results (including costs, fines, reputational harm and/or
other negative effects) from current or future litigation,
regulatory examinations or other legal and/or regulatory actions or
rulings as well as other factors identified in this press release
or as detailed from time to time in our public filings, including
those factors included in the disclosures under the headings
“Forward-Looking Information” and “Item 1A. Risk Factors” in our
most recent Annual Report on Form 10-K for the year ended December
31, 2017. Should one or more of the foregoing risks materialize, or
should underlying assumptions prove incorrect, actual results or
outcomes may vary materially from those projected in, or implied
by, such forward-looking statements. The Bank disclaims any
obligation to update or revise any forward-looking statements based
on the occurrence of future events, the receipt of new information
or otherwise.
GENERAL INFORMATION
Bank of the Ozarks (NASDAQ: OZRK) is a regional bank providing
innovative financial solutions delivered by expert bankers with a
relentless pursuit of excellence. Bank of the Ozarks has been
recognized as the #1 bank in the nation in its asset size for eight
consecutive years.
Headquartered in Little Rock, Arkansas, Bank of the Ozarks
conducts operations through 254 offices in Arkansas, Georgia,
Florida, North Carolina, Texas, Alabama, South Carolina,
California, New York, and Mississippi. Bank of the Ozarks can be
found at www.bankozarks.com and on Facebook, Twitter and LinkedIn
or contacted at (501) 978-2265 or P.O. Box 8811, Little Rock,
Arkansas 72231-8811.
Bank of the Ozarks
Consolidated Balance Sheets
Unaudited March
31, December 31, 2018 2017 (Dollars in
thousands, except per share amounts)
ASSETS Cash and cash
equivalents $ 632,873 $ 440,388 Investment securities - available
for sale 2,612,961 2,622,796 Non-purchased loans 13,674,561
12,733,937 Purchased loans 2,934,535 3,309,092 Allowance for loan
losses (98,097 ) (94,120 ) Net loans 16,510,999
15,948,909 Premises and equipment, net 532,263 519,811 Foreclosed
assets 21,931 25,357 Accrued interest receivable 69,126 64,608 Bank
owned life insurance (“BOLI”) 691,067 658,147 Intangible assets,
net 705,896 709,040 Other, net 262,323 286,591
Total assets $ 22,039,439 $ 21,275,647
LIABILITIES AND STOCKHOLDERS’ EQUITY Deposits: Demand
non-interest bearing $ 2,783,095 $ 2,726,623 Savings and interest
bearing transaction 10,513,959 10,051,122 Time 4,536,618
4,414,600 Total deposits 17,833,672 17,192,345
Repurchase agreements with customers 149,075 69,331 Other
borrowings 1,942 22,320 Subordinated notes 222,993 222,899
Subordinated debentures 118,938 118,800 Accrued interest payable
and other liabilities 183,165 186,164
Total liabilities 18,509,785 17,811,859
Commitments and contingencies Stockholders’ equity:
Preferred stock; $0.01 par value;
100,000,000 shares authorized; no shares issued or outstanding at
March 31, 2018 or December 31, 2017
— —
Common stock; $0.01 par value; 300,000,000
shares authorized; 128,611,611 and 128,287,550 shares issued and
outstanding at March 31, 2018 and December 31, 2017,
respectively
1,286 1,283 Additional paid-in capital 2,227,178 2,221,844 Retained
earnings 1,339,049 1,250,313 Accumulated other comprehensive loss
(40,908 ) (12,712 ) Total stockholders’ equity before
noncontrolling interest 3,526,605 3,460,728 Noncontrolling interest
3,049 3,060 Total stockholders’ equity
3,529,654 3,463,788 Total liabilities
and stockholders’ equity $ 22,039,439 $ 21,275,647
Bank of the Ozarks
Consolidated Statements of
Income
Unaudited
Three Months Ended March 31,
2018 2017 (Dollars in thousands, except
per share amounts) Interest income: Non-purchased loans $ 190,426 $
127,428 Purchased loans 50,977 75,994 Investment securities:
Taxable 11,431 3,816 Tax-exempt 4,160 6,512 Deposits with banks and
federal funds sold 498 20 Total interest
income 257,492 213,770 Interest
expense: Deposits 34,392 18,378 Repurchase agreements with
customers 159 30 Other borrowings 633 222 Subordinated notes 3,146
3,188 Subordinated debentures 1,386 1,181
Total interest expense 39,716 22,999
Net interest income 217,776 190,771 Provision for loan losses
5,567 4,933 Net interest income after
provision for loan losses 212,209 185,838
Non-interest income: Service charges on deposit accounts
9,525 11,301 Mortgage lending income 492 1,574 Trust income 1,793
1,631 BOLI income 7,580 4,464 Other income from purchased loans,
net 1,251 3,737 Loan service, maintenance and other fees 4,743
2,706 Net gains on investment securities 17 — Gains on sales of
other assets 1,426 1,619 Other 1,880 2,026
Total non-interest income 28,707 29,058
Non-interest expense: Salaries and employee benefits 45,499 38,554
Net occupancy and equipment 14,150 13,192 Other operating expenses
34,161 26,522 Total non-interest expense
93,810 78,268 Income before taxes
147,106 136,628 Provision for income taxes 33,973
47,417 Net income 113,133 89,211 Earnings attributable to
noncontrolling interest 11 (23 ) Net income available
to common stockholders $ 113,144 $ 89,188 Basic
earnings per common share $ 0.88 $ 0.73 Diluted
earnings per common share $ 0.88 $ 0.73 Dividends
declared per common share $ 0.19 $ 0.17
Bank of the Ozarks
Consolidated Statements of
Stockholders’ Equity
Unaudited
CommonStock
AdditionalPaid-InCapital
RetainedEarnings
AccumulatedOtherComprehensiveLoss
Non-ControllingInterest
Total (Dollars in thousands, except per share
amounts) Balances – December 31, 2016 $ 1,213 $ 1,901,880 $
914,434 $ (25,920 ) $ 3,264 $ 2,794,871
Cumulative effect of change in accounting
principals
— 1,133 2,720
(3,408 ) — 445 Balances – January 1,
2017, as adjusted 1,213 1,903,013 917,154 (29,328 ) 3,264 2,795,316
Net income — — 89,211 — — 89,211 Earnings attributable to
noncontrolling interest — — (23 ) — 23 — Total other comprehensive
income — — — 7,853 — 7,853 Common stock dividends paid, $0.17 per
share — — (20,659 ) — — (20,659 )
Issuance of 69,655 shares of common stock
for exercise of stock options
1 1,170 — — — 1,171
Issuance of 238,794 shares of unvested
restricted common stock
2 (2 ) — — — — Stock-based compensation expense — 3,712 — — — 3,712
Forfeiture of 1,018 shares of unvested
restricted common stock
— — — —
— — Balances – March 31, 2017 $ 1,216
$ 1,907,893 $ 985,683 $ (21,475 ) $ 3,287
$ 2,876,604 Balances – December 31, 2017 $
1,283 $ 2,221,844 $ 1,250,313 $ (12,712 ) $ 3,060 $ 3,463,788 Net
income — — 113,133 — — 113,133 Earnings attributable to
noncontrolling interest — — 11 — (11 ) — Total other comprehensive
loss — — — (28,196 ) — (28,196 ) Common stock dividends paid, $0.19
per share — — (24,408 ) — — (24,408 )
Issuance of 200,025 shares of common stock
for exercise of stock options
2 5,323 — — — 5,325
Issuance of 198,268 shares of unvested
restricted common stock
2 (2 ) — — — —
Repurchase and cancellation of 70,931
shares of common stock
(1 ) (3,729 ) — — — (3,730 ) Stock-based compensation expense —
3,742 — — — 3,742
Forfeitures of 3,301 shares of unvested
restricted common stock
— — — —
— — Balances – March 31, 2018 $ 1,286
$ 2,227,178 $ 1,339,049 $ (40,908 ) $ 3,049
$ 3,529,654
Bank of the Ozarks
Summary of Non-Interest Expense
Unaudited
Three Months Ended March 31,
2018 2017 (Dollars in thousands)
Salaries and employee benefits $ 45,499 $ 38,554 Net occupancy and
equipment 14,150 13,192 Other operating expenses: Professional and
outside services 8,705 5,338 Postage and supplies 2,195 1,919
Advertising and public relations 1,331 1,190 Telecommunication
services 3,197 3,970 Software and data processing 3,340 2,473 ATM
expense 1,363 1,138 Travel and meals 2,153 1,855 FDIC insurance
2,700 1,000 FDIC and state assessments 862 742 Loan collection and
repossession expense 790 1,302 Writedowns of foreclosed and other
assets 151 596 Amortization of intangibles 3,145 3,145 Other
4,229 1,854 Total non-interest expense $ 93,810 $ 78,268
Bank of the Ozarks
Summary of Total Loans
Outstanding
Unaudited
March 31, 2018
December 31, 2017 (Dollars in thousands) Real estate:
Residential 1-4 family $ 1,099,699 6.6 % $
1,174,427 7.3 % Non-farm/non-residential 4,347,791 26.2 4,478,876
27.9 Construction/land development 7,187,863 43.3 6,648,061 41.5
Agricultural 156,133 0.9 150,003 0.9 Multifamily residential
556,133 3.4 508,514 3.2 Total real estate
13,347,619 80.4 12,959,881 80.8 Commercial and industrial 786,932
4.7 738,225 4.6 Consumer 1,651,567 9.9 1,472,593 9.2 Other
822,978 5.0 872,330 5.4 Total loans $
16,609,096 100.0 % $ 16,043,029 100.0 %
Bank of the Ozarks
Selected Consolidated Financial
Data
Unaudited
Three Months EndedMarch
31,
2018 2017 % Change
(Dollars in thousands, except per share amounts)
Income statement
data:
Net interest income $ 217,776 $ 190,771 14.2 % Provision for loan
losses 5,567 4,933 12.9 Non-interest income 28,707 29,058 (1.2 )
Non-interest expense 93,810 78,268 19.9 Net income available to
common stockholders 113,144 89,188 26.9
Common share and
per common share data:
Earnings - diluted $ 0.88 $ 0.73 20.5 % Earnings - basic 0.88 0.73
20.5 Cash dividends 0.19 0.17 11.8 Book value 27.42 23.63 16.0
Tangible book value(1) 21.93 17.72 23.8 Weighted-average diluted
shares outstanding (thousands) 128,762 121,954 End of period shares
outstanding (thousands) 128,612 121,575
Balance sheet
data at period end:
Total assets $ 22,039,439 $ 19,152,212 15.1 % Total loans
16,609,096 14,796,922 12.2 Non-purchased loans 13,674,561
10,216,875 33.8 Purchased loans 2,934,535 4,580,047 (35.9 )
Allowance for loan losses 98,097 78,224 25.4 Foreclosed assets
21,931 36,899 (40.6 ) Investment securities 2,612,961 1,470,568
77.7 Goodwill and other intangible assets 705,896 718,475 (1.8 )
Deposits 17,833,672 15,713,427 13.5 Repurchase agreements with
customers 149,075 80,609 84.9 Other borrowings 1,942 42,291 (95.4 )
Subordinated notes 222,993 222,611 0.2 Subordinated debentures
118,938 118,380 0.5 Unfunded balance of closed loans 12,551,032
11,258,762 11.5 Total common stockholders’ equity 3,526,605
2,873,317 22.7
Selected
ratios:
Return on average assets(2) 2.16 % 1.93 % Return on average common
stockholders’ equity(2) 13.17 12.80 Return on average tangible
common stockholders’ equity(1) (2) 16.53 17.17 Loan, including
purchased loans, to deposit ratio 93.13 94.17 Average common equity
to total average assets 16.37 15.08 Net interest margin – FTE(2)
4.69 4.88 Efficiency ratio 37.88 35.03 Net charge-offs to average
non-purchased loans(2) (3) 0.04 0.05 Net charge-offs to average
total loans(2) 0.04 0.09 Nonperforming loans to total loans(4) 0.09
0.11 Nonperforming assets to total assets(4) 0.16 0.25 Allowance
for loan losses to non-purchased loans(5) 0.71 0.75
Other
information:
Non-accrual loans(4) $ 12,471 $ 11,069 Accruing loans - 90 days
past due(4) — — Troubled and restructured loans(4) — — Impaired
purchased loans 6,849 13,869
(1)
Calculations of tangible book value per common share and
return on average tangible common stockholders’ equity and the
reconciliations to GAAP are included in the schedules accompanying
this release.
(2)
Ratios for interim periods annualized based on actual days.
(3)
Excludes purchased loans and net
charge-offs related to such loans.
(4)
Excludes purchased loans, except for their
inclusion in total assets.
(5)
Excludes purchased loans and any allowance
for such loans.
Bank of the Ozarks
Supplemental Quarterly Financial
Data
Unaudited
6/30/16 9/30/16
12/31/16 3/31/17
6/30/17 9/30/17
12/31/17 3/31/18 (Dollars in Thousands,
Except Per Share Amounts)
Earnings
Summary:
Net interest income $ 119,038 $ 175,150 $ 194,800 $ 190,771 $
202,105 $ 209,722 $ 214,831 $ 217,776 Federal tax (FTE) adjustment
2,067 2,533 3,254
3,594 3,396 3,014 2,450
1,166 Net interest income (FTE) 121,105
177,683 198,054 194,365 205,501 212,736 217,281 218,942 Provision
for loan losses (4,834 ) (7,086 ) (9,855 ) (4,933 ) (6,103 ) (7,777
) (9,279 ) (5,567 ) Non-interest income 22,733 29,231 30,571 29,058
31,840 32,747 30,213 28,707 Non-interest expense (50,928 )
(78,781 ) (78,358 ) (78,268 ) (83,828 )
(84,399 ) (86,177 ) (93,810 ) Pretax income
(FTE) 88,076 121,047 140,412 140,222 147,410 153,307 152,038
148,272 FTE adjustment (2,067 ) (2,533 ) (3,254 ) (3,594 ) (3,396 )
(3,014 ) (2,450 ) (1,166 ) Provision for income taxes (31,514 )
(42,470 ) (49,312 ) (47,417 ) (53,488 ) (54,246 ) (3,434 ) (33,973
) Noncontrolling interest (21 ) (14 ) (59 )
(23 ) 6 (40 ) 10
11
Net income available to common
stockholders
$ 54,474 $ 76,030 $ 87,787 $ 89,188 $
90,532 $ 96,007 $ 146,164 $ 113,144
Earnings per common share – diluted $ 0.60 $ 0.66 $ 0.72 $ 0.73 $
0.73 $ 0.75 $ 1.14 $ 0.88
Non-interest
Income:
Service charges on deposit accounts $ 8,119 $ 10,926 $ 11,759 $
11,301 $ 11,764 $ 9,729 $ 10,058 $ 9,525 Mortgage lending income
2,057 2,616 2,097 1,574 1,910 1,620 1,294 492 Trust income 1,574
1,564 1,623 1,631 1,577 1,755 1,729 1,793 BOLI income 2,745 4,638
4,564 4,464 4,594 4,453 5,166 7,580 Other income from purchased
loans 4,599 4,635 4,993 3,737 4,777 2,933 2,009 1,251
Loan service, maintenance and other
fees
1,238 1,687 2,962 2,706 3,427 5,274 4,289 4,743 Net gains on
investment securities — — 4 — 404 2,429 1,201 17 Gains on sales of
other assets 998 594 1,537 1,619 672 1,363 1,899 1,426 Other
1,403 2,571 1,032 2,026
2,715 3,191 2,568
1,880 Total non-interest income $ 22,733 $
29,231 $ 30,571 $ 29,058 $ 31,840 $
32,747 $ 30,213 $ 28,707
Non-interest
Expense:
Salaries and employee benefits $ 24,921 $ 38,069 $ 36,481 $ 38,554
$ 39,892 $ 35,331 $ 38,417 $ 45,499 Net occupancy expense 8,388
11,669 13,936 13,192 12,937 13,595 13,474 14,150 Other operating
expenses 17,619 29,043 27,941
26,522 30,999 35,473
34,286 34,161 Total non-interest
expense $ 50,928 $ 78,781 $ 78,358 $ 78,268
$ 83,828 $ 84,399 $ 86,177 $ 93,810
Balance Sheet
Data:
Total assets $ 12,279,579 $ 18,451,783 $ 18,890,142 $ 19,152,212 $
20,064,589 $ 20,768,493 $ 21,275,647 $ 22,039,439 Non-purchased
loans 8,214,900 8,759,766 9,605,093 10,216,875 11,025,203
12,047,094 12,733,937 13,674,561 Purchased loans 1,515,104
5,399,831 4,958,022 4,580,047 4,159,139 3,731,536 3,309,092
2,934,535 Deposits 10,195,072 15,123,804 15,574,878 15,713,427
16,241,440 16,823,359 17,192,345 17,833,672
Common stockholders’ equity
1,556,921 2,756,346 2,791,607 2,873,317 3,260,123 3,334,740
3,460,728 3,526,605
Allowance for
Loan Losses:
Balance at beginning of period $ 61,760 $ 65,133 $ 69,760 $ 76,541
$ 78,224 $ 82,320 $ 86,784 $ 94,120 Net charge-offs (1,461 ) (2,459
) (3,074 ) (3,250 ) (2,007 ) (3,313 ) (1,943 ) (1,590 ) Provision
for loan losses 4,834 7,086
9,855 4,933 6,103 7,777
9,279 5,567 Balance at end of
period $ 65,133 $ 69,760 $ 76,541 $ 78,224
$ 82,320 $ 86,784 $ 94,120 $ 98,097
Selected
Ratios:
Net interest margin – FTE(1) 4.82 % 4.90 % 5.02 % 4.88 % 4.99 %
4.84 % 4.72 % 4.69 % Efficiency ratio 35.41 38.07 34.27 35.03 35.32
34.38 34.82 37.88 Net charge-offs to average
non-purchased loans(1) (2)
0.05 0.06 0.08 0.05 0.03 0.08 0.08 0.04 Net charge-offs to average
total loans(1)
0.06 0.07 0.09 0.09 0.05 0.09 0.05 0.04 Nonperforming loans
to total loans(3)
0.09 0.08 0.15 0.11 0.11 0.11 0.10 0.09 Nonperforming assets to
total assets(3) 0.25 0.28 0.31 0.25 0.23 0.20 0.18 0.16 Allowance
for loan losses to
total non-purchased loans(4)
0.78 0.78 0.78 0.75 0.73 0.71 0.73 0.71
Loans past due 30 days or more, including
past due non-accrual loans, to total loans(3)
0.22 0.17 0.16 0.16 0.15 0.12 0.15 0.14
(1)
Ratios for interim periods annualized
based on actual days.
(2)
Excludes purchased loans and net
charge-offs related to such loans.
(3)
Excludes purchased loans, except for their
inclusion in total assets.
(4)
Excludes purchased loans and any allowance
for such loans.
Bank of the Ozarks
Average Consolidated Balance Sheets and
Net Interest Analysis – FTE
Unaudited
Three Months Ended March 31,
2018 2017
AverageBalance
Income/Expense
Yield/Rate
AverageBalance
Income/Expense
Yield/Rate
(Dollars in thousands)
ASSETS Interest earning assets:
Interest earning deposits and federal
funds sold
$ 110,085 $ 498 1.83 % $ 41,806 $ 20 0.19 % Investment securities:
Taxable 2,062,358 11,431 2.25 663,153 3,816 2.33 Tax-exempt – FTE
556,776 5,265 3.84 803,589 10,019 5.06 Non-purchased loans – FTE
13,010,093 190,487 5.94 9,827,717 127,515 5.26 Purchased loans
3,181,740 50,977 6.50 4,807,080 75,993
6.41 Total earning assets – FTE 18,921,052 258,658 5.54 16,143,345
217,363 5.46 Non-interest earning assets 2,359,796
2,603,381 Total assets $ 21,280,848 $ 18,746,726
LIABILITIES AND STOCKHOLDERS’
EQUITY
Interest bearing liabilities: Deposits:
Savings and interest bearing
transaction
$ 9,857,347 $ 22,570 0.93 % $ 7,862,653 $ 8,458 0.44 % Time
deposits of $100 or more 3,036,123 8,781 1.17 3,241,587 7,132 0.89
Other time deposits 1,445,948 3,041 0.85
1,699,858 2,787 0.66 Total interest bearing deposits
14,339,418 34,392 0.97 12,804,098 18,377 0.58 Repurchase agreements
with customers 112,434 159 0.57 79,884 30 0.15 Other borrowings
165,943 633 1.55 42,137 222 2.14 Subordinated notes 222,947 3,146
5.72 222,561 3,188 5.81 Subordinated debentures 118,864
1,386 4.73 118,300 1,181 4.05 Total interest
bearing liabilities 14,959,606 39,716 1.08 13,266,980 22,998 0.70
Non-interest bearing liabilities: Non-interest bearing deposits
2,666,111 2,574,540 Other non-interest bearing liabilities
167,778 75,107 Total liabilities 17,793,495 15,916,627
Common stockholders’ equity 3,484,297 2,826,832 Noncontrolling
interest 3,056 3,267
Total liabilities and stockholders’
equity
$ 21,280,848 $ 18,746,726 Net interest income – FTE $
218,942 $ 194,365 Net interest margin – FTE 4.69 % 4.88 %
RECONCILIATION OF NON-GAAP FINANCIAL
MEASURES
Bank of the Ozarks
Calculation of Average Tangible
Common
Stockholders’ Equity and the Return
on
Average Tangible Common Stockholders’
Equity
Unaudited
Three Months Ended March 31,
2018 2017 (Dollars in thousands) Net
income available to common stockholders $ 113,144 $ 89,188
Average common stockholders’ equity before
noncontrolling interest
$ 3,484,297 $ 2,826,832 Less average intangible assets: Goodwill
(660,789 ) (660,151 )
Core deposit and other intangibles, net of
accumulated amortization
(47,122 ) (59,596 ) Total average intangibles
(707,911 ) (719,747 ) Average tangible common stockholders’
equity $ 2,776,386 $ 2,107,085 Return on average
common stockholders’ equity(1) 13.17 % 12.80 % Return
on average tangible common stockholders’ equity(1) 16.53 %
17.17 % (1) Ratios for interim periods
annualized based on actual days.
Bank of the Ozarks
Calculation of Total Tangible
Common
Stockholders’ Equity and
Tangible
Book Value per Common Share
Unaudited
March 31, 2018
2017 (In thousands, except per share amounts) Total common
stockholders’ equity before noncontrolling interest $ 3,526,605 $
2,873,317 Less intangible assets: Goodwill (660,789 ) (660,789 )
Core deposit and other intangibles, net of
accumulated amortization
(45,107 ) (57,686 ) Total intangibles (705,896
) (718,475 ) Total tangible common stockholders’ equity $
2,820,709 $ 2,154,842 Shares of common stock
outstanding 128,612 121,575 Book value
per common share $ 27.42 $ 23.63 Tangible book value
per common share $ 21.93 $ 17.72
Bank of the Ozarks
Calculation of Total Tangible Common
Stockholders’
Equity and the Ratio of Total Tangible
Common
Stockholders’ Equity to Total Tangible
Assets
Unaudited
March 31, 2018
2017 (Dollars in thousands) Total common stockholders’
equity before noncontrolling interest $ 3,526,605 $ 2,873,317 Less
intangible assets: Goodwill (660,789 ) (660,789 )
Core deposit and other intangibles, net of
accumulated amortization
(45,107 ) (57,686 ) Total intangibles (705,896
) (718,475 ) Total tangible common stockholders’ equity $
2,820,709 $ 2,154,842 Total assets $ 22,039,439 $
19,152,212 Less intangible assets: Goodwill (660,789 ) (660,789 )
Core deposit and other intangibles, net of
accumulated amortization
(45,107 ) (57,686 ) Total intangibles (705,896
) (718,475 ) Total tangible assets $ 21,333,543 $
18,433,737 Ratio of total common stockholders’ equity to
total assets 16.00 % 15.00 %
Ratio of total tangible common
stockholders’ equity to total tangible assets
13.22 % 11.69 %
View source
version on businesswire.com: https://www.businesswire.com/news/home/20180412005246/en/
Bank of the OzarksMedia Contact:Susan Blair,
501-978-2217orInvestor Contact:Tim Hicks, 501-978-2336
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