George Gleason
Bank of the Ozarks Inc. of Little Rock today reported second quarter net income of $26.5 million, a 29.9 percent increase compared to 2013, and record loan growth of $393 million in the quarter.
Net income for the six months ending June 30 totaled $51.8 million, a 28.2 percent increase for the same period in 2013.
The company’s allowance for loan and lease losses was $47 million, or 1.48 percent of total loans and leases, down from 1.61 percent a year ago.
Bank of the Ozarks completed the purchase of Summit Bancorp Inc. of Arkadelphia in May, and acquisition-related expenses reduced earnings by $500,000 during the second quarter.
The company noted three significant unusual items that resulted in an overall earnings gain of $700,000 for 2014.
The March acquisition of Bancshares Inc. of Houston produced a tax-exempt bargain purchase gain of $4.7 million. Total acquisition-related costs cut profits by $900,000, and a change in software yielded termination costs of $3.1 million.
“While acquisitions have contributed significantly to our growth and profitability in recent years, our ability to organically grow our portfolio of high quality, good yielding loans and leases has been even more important,” Chairman and CEO George Gleason said in a press release announcing the quarterly results. “Our balance of loans and leases outstanding, excluding covered loans and purchased non-covered loans, increased a record $393 million in the quarter just ended and $539 million for the first six months of 2014.”
Total assets at June 30 were $6.3 billion, a 55.8 percent increase compared to a year ago thanks in great part to the acquisitions. Deposits at June 30 were $4.98 billion, a 67 percent increase compared to 12 months earlier.
Bank of the Ozarks completed a 2-for-1 stock split on June 23.
The company owns a state-chartered subsidiary bank that conducts banking operations through 164 offices, including 88 in Arkansas, 28 in Georgia, 21 in Texas, 16 in North Carolina, five in Florida, three in Alabama and one office each in South Carolina, New York and California.
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