Bank of the Ozarks 2Q Profit Tops $50 Million

by George Waldon  on Wednesday, Jul. 13, 2011 5:30 pm  

George Gleason, chairman and CEO of Bank of the Ozarks Inc.

Bank of the Ozarks today announced record second-quarter earnings of $50.2 million, compared to $10.9 million a year ago.

The whopping 361 percent increase was powered by two FDIC-assisted acquisitions. The company's purchase of First Choice Community Bank of Dallas, Ga., and The Park Avenue Bank of Valdosta, Ga., marked its sixth and seventh FDIC-assisted deals.

(Click here for a report on Thursday morning's conference call with investors and analysts.)

The $36.4 million earnings boost from these deals propelled combined net income for the first two quarters to $64.8 million, a 142 percent increase compared to the same period a year ago.

Bank of the Ozarks reported annualized returns on average assets of 5.24 percent and on average common stockholders' equity of 55.88 percent for the second quarter. That performance compares to 1.48 percent and 15.19 percent for the second quarter in 2010.

For the six months ending June 30, annualized returns on average assets were 3.63 percent and average common stockholders' equity were 38.05 percent. Those numbers nearly doubled last year's 1.89 percent and 19.31 percent performance for the same period.

"We are very pleased to report our record second quarter results," said George Gleason, chairman and CEO of the Little Rock bank holding company, said in a statement accompanying the results.

"Highlights of the quarter included two more strategic and profitable acquisitions, record net interest income, our best quarterly net interest margin as a public company, record service charge income, favorable asset quality and significant growth in our capital accounts."

Other financial highlights for the June 30 period include:

  •  Loans and leases, excluding loans covered by FDIC loss share agreements, were $1.80 billion, a 5.2 percent decrease from $1.9 billion a year ago.
  • Total loans and leases, including covered loans, were $2.71 billion, a 33.7 percent increase from $2.03 billion at June 30, 2010.
  • Deposits were $3.17 billion, a 46.9 percent increase from $2.16 billion a year ago.
  • Total assets were $4.03 billion, a 39.9 percent increase from $2.88 billion at June 30, 2010.
"In recent years our strong earnings have resulted in accumulation of significant capital," Gleason said in the release. "We believe we will have numerous opportunities over the next several years, including opportunities for additional FDIC-assisted acquisitions, to profitably deploy this accumulated capital."



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