Bank OZK reports record quarterly income, revenue up 7%

Little Rock-based Bank OZK on Wednesday (July 17) reported record second quarter net income of $173.496 million, with per share net income of $1.52 matching the consensus estimate. The regional bank did warn that loan growth would decline in 2024.

The second quarter income was 3.3% more than the $167.917 million in the same quarter of 2023. Revenue – interest income and non-interest income – totaled $416.276 million in the quarter, above the $388.811 million in the same quarter of 2023, and just above the consensus estimate of $414. 39 million.

The bank said its pre-tax pre-provision net revenue was $279.325 million in the quarter, better than the $259.456 million in the same quarter of 2023.

“We are very pleased with our record results for the quarter just ended giving us our seventh consecutive quarter of record net income and EPS and eighth consecutive quarter of record net interest income. These record results have allowed us to consistently increase dividends, significantly grow capital and opportunistically repurchase shares, all while almost doubling our allowance for credit losses,” the company noted in a management report posted in addition to the earnings report.

Net income in the first half of the year was $344.987 million, up from the $333.771 million in the same period of 2023. Revenue in the first six months was $1.362 billion, also better than the $1.016 billion in the same period of 2023. The bank’s total allowance for credit losses was $574.1 million as of June 30, above the $426.8 million as of June 30, 2023.

Loan growth, a key source of revenue for any bank, is projected by bank officials to be lower than in 2023.

“While we expect continued good loan growth in the remainder of 2024, we believe that loan growth for the full year of 2024 will likely be less than the $5.68 billion achieved in 2023. Loan growth may vary significantly from quarter to quarter and may be impacted by interest rates, economic conditions, competition or other factors,” the company noted.

Following are other financial items from the quarterly report.
• Total assets as of June 30 reached $36.836 billion, up from the $30.761 billion at the same period in 2023.

• Total loans as of June 30 were $28.67 billion, up from the $23.61 billion at the same period in 2023.

• Total deposits as of June 30 were $29.943 billion, up from the $23.983 billion at the same period in 2023.

• The return on assets as of June 30 was 1.94%, down from 2.34% at the same period in 2023.

Established in 1903, Bank OZK has banking operations and more than 240 offices in Arkansas, California, Florida, Georgia, Mississippi, New York, North Carolina and Texas. Bank OZK shares (NASDAQ: OZK) closed Wednesday at $46.92, up 40 cents. The share price has in the past 52 weeks ranged between $34.76 and $52.36.