First quarter income for Bank OZK down 2.2%, but beats market estimate

Little Rock-based Bank OZK reported first quarter net income of $110.712 million, down from $113.144 million in the 2018 quarter. The per share income of 86 cents was better than the consensus estimate of 84 cents. Total income of $319.315 million was up 11.6% compared with the same quarter of 2018.

The income blew past the consensus estimate of $252.19 million.

“We are pleased with our first quarter results. Our $110.7 million net income, 1.99% annualized return on average assets, 4.53% net interest margin and 38.5% efficiency ratio provide an excellent start for 2019. Our team of industry and technology professionals is well-positioned to capitalize on opportunities throughout 2019 and beyond,” bank Chairman and CEO George Gleason noted in the earnings report posted Wednesday (April 17) after the markets closed.

The first quarter net income decline follows a full year 2018 decline. The 2018 net income totaled $417.1 million, down 1.1% from 2017 net income of $421.9 million. Yearly revenue was just short of $1 billion at $999.2 million, up nearly 30% from 2017.

Following are closely watched financial data from the first quarter report.
• Total loans were $17.48 billion at the end of the first quarter, up 5.2% from $16.61 billion in the 2018 quarter. Non-purchased loans, excluding loans acquired in acquisitions, were $15.61 billion at the end of the quarter, up 14.2% from $13.67 billion at March 31, 2018. Purchased loans, those acquired in previous acquisitions, were $1.86 billion at the end of the quarter, down 36.5% from the same quarter in 2018.

• Deposits were $18.48 billion at the end of the quarter, up 3.6% from $17.83 billion at March 31, 2018. Total assets were $23.01 billion at March 31, 2019, up 4.4% from $22.04 billion at March 31, 2018.

• Non-interest expense – primarily salaries and benefits, rent, equipment costs, and professional services – totaled $96.678 million at the end of the quarter, up 3.05% compared with the same quarter in 2018.

• Allowance for loan losses $105.954 million at the end of the quarter, up slightly from the $102.264 million at the end of the first quarter of 2018.

Bank shares (NASDAQ: OZK) closed Wednesday at $30.37, down 21 cents. During the past 52 weeks the share price has ranged between $50.39 and $21.02.

The bank has 254 office operations in Alabama, Arkansas, California, Florida, Georgia, Mississippi, New York, North Carolina, South Carolina and Texas.