Bank OZK posted first quarter net income of $148.416 million, well ahead of the $11.866 million in the same quarter of 2020. Quarterly revenue of $266.753 million was up from the $265.261 million in the same quarter of 2020 and better than the consensus estimate of $257.66 million.
Per share earnings for the Little Rock-based regional banking company was $1.14, which blew past the consensus estimate of 86 cents per share.
Part of the net income gain came for a reduction of $31.6 million in the provision for credit losses. The reduction was the result of “improving economic conditions,” noted the bank’s earnings report which was posted Thursday (April 22) after the markets closed. By way of comparison, the bank posted a $117.7 million hit against earnings in the first quarter of 2020 to boost the provision for credit losses.
First quarter results also benefited from a $4.4 million pre-tax gain after the sale of South Carolina branches.
“We are pleased to report excellent results for the first quarter of 2021, including record quarterly net income, strong net interest income, continued improvement in our core spread, excellent asset quality and an efficiency ratio among the best in the industry. Our combination of strong earnings, robust capital and an exceptional team have us well positioned for the future,” George Gleason, chairman and CEO, said in the earnings report.
Following are other items in the quarterly report.
• Return on assets, a key metric in the banking sector, was 2.23% at the end of the first quarter, better than the 0.2% at the end of the same quarter in 2020.
• Total assets as of March 31 were $27.276 billion, above the $24.565 billion at the end of the same quarter in 2020.
• Total deposits as of March 31 were $21.296 billion, above the $18.809 billion at the end of the same quarter in 2020.
• Total loans as of March 31 were $18.715 billion, below the $18.228 billion at the end of the same quarter in 2020.
• At March 31, 2021, foreclosed assets were $8.436 million, well below the $20.616 million in the same period in 2020.
Bank OZK has more than 250 branches, loan production offices and other offices in Arkansas, California, Florida, Georgia, Mississippi, New York, North Carolina and Texas.
Bank shares (NASDAQ: OZK) closed Thursday at $39.28, down 43 cents. During the past 52 weeks, the share price has ranged between $45.83 and $17.33.