Bank of the Ozarks Announces Stock Split

Bank of the Ozarks Inc. announced July 19 a two-for-one stock split effective Aug. 16 for shareholders of record Aug. 5.

The split will be the third for BOZ stock since its initial public offering 14 years ago and the first stock split – not including ominous reverse splits – by an Arkansas company since Murphy Oil Corp.’s two-for-one split in June 2005. Bank of the Ozarks stock previously split in June 2002 and December 2003.

The stock opened at $53.47 on the morning of July 20, up more than 1 percent from the July 19 closing price of $52.80. As of presstime, the stock’s price was $53.50.

“This declaration reflects our Board’s confidence in our ability to drive long-term value to our shareholders and recognizes our Company’s strong market performance and continued growth prospects,” Chairman and CEO George Gleason said in a press release announcing the split. “The decision to declare a two-for-one stock split will allow us to maintain a market price for our stock that is affordable and accessible to a wider range of investors and to increase our overall shareholder base and liquidity in our stock.”

The split follows closely two other positive announcements by the fast-growing Little Rock bank holding company. A week ago, BOZ announced second-quarter earnings of $50.2 million, a 361 percent increase from the comparable period in 2010 thanks to two FDIC-assisted acquisitions in Georgia. And on July 1, the board of directors announced a 19-cent per share cash dividend payable later this week, an increase from 18 cents per share last quarter and the sixth increased dividend in the past seven quarters.