Bank OZK of Little Rock on Thursday reported first-quarter net income of $148.4 million, up more than 1,100% from $11.9 million in the same quarter last year. The company also beat analysts’ expectations for earnings per share and revenue.
The bank reported earnings per share of $1.14. Adjusted for non-recurring gains, EPS came to $1.11 per share, well ahead of Wall Street expectations of 87 cents.
Revenue was $296.2 million, and revenue net of interest expense was $266.8 million, topping analyst expectations of $258.4 million.
Executives noted that quarterly net income was a company record and EPS matched its all-time high.
“We are pleased to report excellent results for the first quarter of 2021, including record quarterly net income, strong net interest income, continued improvement in our core spread, excellent asset quality and an efficiency ratio among the best in the industry,” Chairman and CEO George Gleason said in a news release. “Our combination of strong earnings, robust capital and an exceptional team have us well positioned for the future.”
Citing “improving economic conditions,” the company recorded negative provision for credit losses of $31.6 million during the first quarter, cutting its total allowance for credit losses from $377.3 million on Dec. 31 to $342.3 million on March 31. Bank OZK said its provision for credit losses was $117.7 million during the first quarter of 2020, “reflecting significant economic uncertainty at that time” as the COVID-19 pandemic took hold in the United States.
The company noted that first-quarter 2021 results included pretax gains of $4.4 million from the sale of its South Carolina branches and $1.4 million of tax-exempt bank-owned life insurance death benefits. It had no gains from branch sales and had $600,000 of tax-exempt BOLI death benefits during the first quarter last year.
Bank OZK (Nasdaq: OZK) shares have increased 26% since the beginning of the year. In the final minutes of trading on Thursday, shares hit $39.28, more than doubling in the last 12 months, according to The Associated Press.
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