Bank of the Ozark profits jump 141%
Bank of the Ozarks Inc.’s profits soared in the third quarter, beating last year’s results by a record 141 percent on the strength of two FDIC-backed acquisitions.
For the period ended Sept. 30, the Little Rock-based bank reported net income of $20.2 million, or $1.19 cents per share, compared to $8.4 million, or 50 cents per share a year ago. Analysts, on average, had expected the Arkansas regional bank to report third quarter earnings of 62 cents per share, according to Thomson Reuters.
“We are very pleased with our record third quarter results,” Bank of the Ozarks CEO George Gleason said in a statement. “Highlights of the quarter include our two profitable acquisitions, record net interest income, our best quarterly net interest margin as a public company, record income from service charges on deposit accounts, and favorable results for mortgage lending income, trust income and asset quality.”
Earlier this month, Bank of the Ozarks entered into a purchase and assumption agreement with the Federal Deposit Insurance Corporation (FDIC) to assume all of the deposits of Bradenton, Fla-based Horizon Bank.
In acquiring the Florida thrift, Bank of the Ozark garnered $164.6 million in deposits and $187.8 million in assets.
In July, Bank of the Ozarks reach a similar deal with the FDIC to purchase Woodlands Bank of Bluffton, South Carolina. That deal padded the Arkansas bank’s coffers with $350 million in deposits and $390 million in assets, including approximately $275 million of loans and approximately $85 million of investment securities.
Altogether, the two third quarter acquisitions — after taxes and other associated charges — contributed $8.8 million to net income, or $0.51 to diluted earnings per common share, to the Arkansas bank’s bottom line.
Other highlights of Bank of the Ozark’s record third quarter financial results, include:
• Loans and leases, excluding those covered by FDIC loss share agreements, were $1.89 billion at Sept. 30, 2010, a decrease of 2.2% from $1.93 billion at Sept. 30, 2009;
• Including loans covered by FDIC loss share agreements, loans and leases were $2.28 billion at Sept. 30, 2010, an increase of 18.2% from $1.93 billion at Sept. 30, 2009;
• Deposits were $2.42 billion at Sept. 30, 2010, an increase of 18.1% compared to $2.05 billion at Sept. 30, 2009;
• Total assets were $3.18 billion at Sept. 30, 2010, an increase of 9.9% from $2.89 billion at Sept. 30, 2009; and,
• Common stockholders’ equity was $316 million at Sept. 30, 2010, an increase of 15.5% from $274 million at Sept. 30, 2009.
Bank of the Ozarks’ shares closed Wednesday at $37.98, up 77 cents. During the past 52 weeks, the share price has ranged from a $39.78 high to a $22.26 low.