Quarterly income and revenue for Bank OZK beat estimates

Little Rock-based Bank OZK on Thursday (July 22) posted second quarter net income of $150.535 million, well ahead of the $50.266 million in the second quarter of 2020. The multi-state bank operator beat the consensus estimate on quarterly earnings and revenue.

Quarterly per share earnings of $1.16 were far better than the 39 cents per share in the same quarter of 2020 and ahead of the 92 cents that was the consensus among the analysts who follow the company.

Revenue in the quarter reached $268.488 million, up from $238.184 million in the 2020 quarter and also better than the consensus estimate of $259.36 million.

“We are pleased to report record results for the quarter just ended. Our strong capital and liquidity, our disciplined credit culture and our exceptional team have us well positioned for the future,” Bank OZK Chairman and CEO George Gleason noted in the earnings report posted after the markets closed.

Net income in the first six months was $298.95 million, up from the $62.132 million in the first half of 2020. Revenue in the six months was $535.24 million, also better than the $475.638 million in the first half of 2020.

Following are other financials in the earnings report.
• Total loans were $18.27 billion at June 30, 2021, a 5.4% decrease from $19.31 billion at June 30, 2020. Non-purchased loans were $17.61 billion at June 30, 2021, a 3.5% decrease from $18.25 billion at June 30, 2020. Purchased loans, which consist of loans acquired in previous acquisitions, were $660 million at June 30, 2021, a 38% decrease from $1.06 billion at June 30, 2020.

• Deposits were $20.71 billion at June 30, 2021, a 0.1% decrease from $20.72 billion at June 30, 2020.

• Total assets were $26.605 billion at June 30, 2021, a 0.9% increase from $26.38 billion at June 30, 2020, but a 2.5% decrease from $27.28 billion at March 31, 2021.

• Return on assets at the end of the quarter was 2.24%, up from the 0.78% at the end of the second quarter of 2020.

• The bank’s results for the first six months of 2021 included pretax gains of $4.4 million from the sale of its South Carolina branches and $1.4 million of tax-exempt bank-owned life insurance death benefits, both of which were recognized during the first quarter of 2021.

Bank OZK operates 250 branches, loan production offices and other offices in Arkansas, California, Florida Georgia, Mississippi, New York, North Carolina and Texas, New York.

The bank’s shares (NASDAQ: OZK) closed Thursday at $39.76, down 65 cents. During the past 52 weeks, the share price has ranged between $45.83 and $20.10.