Quarterly income dips for Bank of the Ozarks

Bank of the Ozarks reported third quarter net income of $18.9 million, a 6.5% decrease from $20.2 million for the third quarter of 2010.

Diluted earnings per common share hit 55 cents, a 6.8% decrease from 59 cents for the third quarter of 2010. On Aug. 16, Bank of the Ozarks completed a two-for-one stock split in the form of a dividend payment.

The Little Rock-based bank holding company has been on an acquisition spree during the past year, but made no FDIC-assisted transactions in the last quarter.

For the nine months ended Sept. 30, 2011, net income totaled $83.8 million, a 77.9% increase from net income of $47.1 million for the first nine months of 2010. Diluted earnings per common share for the first nine months of 2011 were $2.43, a 76.1% increase from $1.38 for the first nine months of 2010.

“We are very pleased to report excellent third quarter results. Highlights of the quarter included record net interest income, our best quarterly net interest margin as a public company, record service charge income, favorable asset quality and good growth in non-covered loans and leases,” George Gleason, Bank of the Ozarks chairman and CEO, said in the earnings statement.

Bank of the Ozarks’ deposits were $3.05 billion on Sept. 30, a 26% increase from $2.42 billion at Sept. 30, 2010, but a 3.9% decrease from $3.17 billion at June 30, 2011.

Total assets were $3.93 billion at the end of the quarter, up 23.8% from $3.18 billion at Sept. 30, 2010, but a 2.4% decrease from $4.03 billion at June 30, 2011.

As the bank has increased its holdings through acquisitions, it has also reduced slightly the quality of its loans. Nonperforming loans and leases as a percent of total loans and leases were 1.22% as of Sept. 30, 2011, up from 0.9% as of Sept. 30, 2010.

However, nonperforming assets as a percent of total assets were 1.45% as of Sept. 30, 2011, down from 1.85% as of Sept. 30, 2010, but up from 1.39% as of June 30.

Bank of the Ozarks shares (NASDAQ: OZRK) closed Wednesday at $23.47, up 79 cents. During the previous 52 weeks the share price has ranged from a $27.71 high to a $18.52 low.