Bank OZK of Little Rock (NASDAQ: OZK) on Thursday reported third-quarter net income of $130.3 million, an increase of more than 19% from the same quarter last year.
The bank reported earnings of $1 per share, a 19% increase from earnings of 84 cents per share in the third quarter of 2020.
The results beat Wall Street expectations. The average estimate of five analysts surveyed by Zacks Investment Research was for earnings of 97 cents per share.
Revenue came to $288.6 million for the quarter, with revenue net of interest expense reported at $273.9 million, which also beat analysts' expectations of $264.1 million.
The company reported negative provision for credit losses of $7.5 million during the third quarter and $69.9 million during the first nine months of the year, which it attributed to improved economic conditions and outlook.
“We are pleased to report our highest level of quarterly (Real Estate Specialties Group) loan originations since 2017 along with record net interest income for the quarter just ended," Chairman and CEO George Gleason said in a news release.
The bank said its provision for credit losses was $7.2 million during the third quarter and $196.9 million during the first nine months of 2020, reflecting "significant economic uncertainty at that time."
For the nine months ended Sept. 30, net income was $429.2 million, an increase of more than 150% from $171.4 million over the same period in 2020. Diluted earnings per common share for the first nine months of 2021 were $3.30, up 150% from $1.32 for the first nine months of 2020.
Deposits were $20.10 billion as of Sept. 30, a 5.6% decrease from $21.29 billion at the same date last year. Total assets were $26.14 billion at Sept. 30, a 2.8% decrease from $26.89 billion on the same date last year.
The Associated Press contributed to this report.