Bank OZK of Little Rock on Thursday reported second-quarter net income of $150.5 million, up nearly 200% from the same quarter last year, when the COVID-19 pandemic and a new accounting standard dragged on results.
The bank said earnings rose to $1.16 per share from 39 cents in the same quarter last year.
The results beat Wall Street expectations. The average estimate of five analysts surveyed by Zacks Investment Research was for earnings of 94 cents per share.
Revenue came to $291.8 million, with revenue net of interest expense at $268.5 million, which also beat analysts' expectations of $259.4 million.
"We are pleased to report record results for the quarter just ended," Chairman and CEO George Gleason said in a news release. "Our strong capital and liquidity, our disciplined credit culture and our exceptional team have us well positioned for the future."
The company said that, as a result of "improving economic conditions and prospects for improvement in the U.S. economy," it recorded negative provision for credit losses of $30.9 million during the second quarter and $62.5 million during the first six months of 2021, reducing its total allowance for credit losses from $377.3 million at Dec. 31 to $307.6 million as of June 30.
The bank said its provision for credit losses was $72 million during the second quarter and $189.7 million during the first six months of 2020, reflecting the "significant economic uncertainty at that time."
For the six months ended June 30, net income was $299.0 million, a 381% increase from $62.1 million in the same period last year. Diluted earnings per common share were $2.30, up 379% from 48 cents for the first six months of 2020.
The company said total deposits were $20.71 billion as of June 30, a 0.1% decrease from $20.72 billion as of June 30, 2020. Total assets were $26.61 billion, a 0.9% increase from $26.38 billion at June 30, 2020, but a 2.5% decrease from $27.28 billion at March 31, 2021.
In July, the bank's board of directors authorized a stock repurchase program through which it may repurchase up to $300 million of its outstanding common stock. The program will expire on July 1, 2022, unless extended or shortened by the board.
(The Associated Press contributed to this report.)
