Bank of the Ozarks Announces Record Third Quarter 2017 Earnings
LITTLE ROCK, Ark.--(BUSINESS WIRE)-- Bank of the Ozarks (the “Bank”) (NASDAQ: OZRK) today announced that net income for the third quarter of 2017 was a record $96.0 million, a 26.3% increase from $76.0 million for the third quarter of 2016. Diluted earnings per common share for the third quarter of 2017 were a record $0.75, a 13.6% increase from $0.66 for the third quarter of 2016.
For the first nine months of 2017, net income totaled $275.7 million, a 51.3% increase from net income of $182.2 million for the first nine months of 2016. Diluted earnings per common share for the first nine months of 2017 were $2.21, a 20.1% increase from $1.84 for the first nine months of 2016.
The Bank’s annualized returns on average assets, average common stockholders’ equity and average tangible common stockholders’ equity for the third quarter of 2017 were 1.89%, 11.56% and 14.76%, respectively, compared to 1.80%, 12.18% and 16.01%, respectively, for the third quarter of 2016. The Bank’s annualized returns on average assets, average common stockholders’ equity and average tangible common stockholders’ equity for the first nine months of 2017 were 1.91%, 12.10% and 15.81%, respectively, compared to 1.88%, 13.27% and 15.88%, respectively, for the first nine months of 2016. The calculation of the Bank’s return on average tangible common stockholders’ equity and the reconciliation to generally accepted accounting principles (“GAAP”) are included in the schedules accompanying this release.
George Gleason, Chairman and Chief Executive Officer, stated, “We are pleased to report another quarter of great results, including record net income for the eighth consecutive quarter, record diluted earnings per share, excellent asset quality and growth of $1.02 billion in non-purchased loans and leases.”
KEY BALANCE SHEET METRICS
Total loans and leases, including purchased loans, were $15.78 billion at September 30, 2017, an 11.4% increase from $14.16 billion at September 30, 2016. Non-purchased loans and leases, which exclude loans acquired in previous acquisitions, were $12.05 billion at September 30, 2017, a 37.5% increase from $8.76 billion at September 30, 2016. Purchased loans, which consist of loans acquired in previous acquisitions, were $3.73 billion at September 30, 2017, a 30.9% decrease from $5.40 billion at September 30, 2016. The unfunded balance of closed loans totaled $12.52 billion at September 30, 2017, a 44.6% increase from $8.66 billion at September 30, 2016.
Deposits were $16.82 billion at September 30, 2017, an 11.2% increase from $15.12 billion at September 30, 2016. Total assets were $20.77 billion at September 30, 2017, a 12.6% increase from $18.45 billion at September 30, 2016.
Common stockholders’ equity was $3.33 billion at September 30, 2017, a 21.0% increase from $2.76 billion at September 30, 2016. Tangible common stockholders’ equity was $2.62 billion at September 30, 2017, a 28.9% increase from $2.03 billion at September 30, 2016. Book value per common share was $26.02 at September 30, 2017, a 14.4% increase from $22.75 at September 30, 2016. Tangible book value per common share was $20.46 at September 30, 2017, a 21.9% increase from $16.79 at September 30, 2016. The calculations of the Bank’s tangible common stockholders’ equity and tangible book value per common share and the reconciliations to GAAP are included in the schedules accompanying this release.
The Bank’s ratio of common stockholders’ equity to total assets was 16.06% at September 30, 2017 compared to 14.94% at September 30, 2016. Its ratio of tangible common stockholders’ equity to total tangible assets was 13.08% at September 30, 2017 compared to 11.47% at September 30, 2016. The calculation of the Bank’s ratio of total tangible common stockholders’ equity to total tangible assets and the reconciliation to GAAP are included in the schedules accompanying this release.
NET INTEREST INCOME
Net interest income for the third quarter of 2017 was $209.7 million, a 19.7% increase from $175.2 million for the third quarter of 2016. Net interest margin, on a fully taxable equivalent (“FTE”) basis, was 4.84% for the third quarter of 2017, a decrease of six basis points from 4.90% for the third quarter of 2016. Average earning assets were $17.44 billion for the third quarter of 2017, a 20.9% increase from $14.43 billion for the third quarter of 2016.
Net interest income for the first nine months of 2017 was $602.6 million, a 48.2% increase from $406.7 million for the first nine months of 2016. Net interest margin, on a FTE basis, was 4.90% for the first nine months of 2017, an increase of two basis points from 4.88% for the first nine months of 2016. Average earning assets were $16.72 billion for the first nine months of 2017, a 47.6% increase from $11.32 billion for the first nine months of 2016.
NON-INTEREST INCOME
Non-interest income for the third quarter of 2017 increased 12.0% to $32.7 million compared to $29.2 million for the third quarter of 2016. Non-interest income for the first nine months of 2017 increased 30.4% to $93.6 million compared to $71.8 million for the first nine months of 2016.
Included in non-interest income for the third quarter and first nine months of 2017 were gains on investment securities totaling $2.43 million and $2.83 million, respectively, compared to no gains on investment securities for the third quarter and first nine months of 2016.
NON-INTEREST EXPENSE
Non-interest expense for the third quarter of 2017 increased 7.1% to $84.4 million compared to $78.8 million for the third quarter of 2016. Non-interest expense for the first nine months of 2017 increased 39.0% to $246.5 million compared to $177.4 million for the first nine months of 2016.
The Bank’s efficiency ratio (non-interest expense divided by the sum of net interest income FTE and non-interest income) for the third quarter of 2017 was 34.4% compared to 38.1% for the third quarter of 2016. The Bank’s efficiency ratio for the first nine months of 2017 was 34.9% compared to 36.6% for the first nine months of 2016.
ASSET QUALITY, CHARGE-OFFS AND ALLOWANCE
Excluding purchased loans, the Bank’s ratio of nonperforming loans and leases as a percent of total loans and leases was 0.11% at September 30, 2017 compared to 0.08% at September 30, 2016.
Excluding purchased loans, the Bank’s ratio of nonperforming assets as a percent of total assets was 0.20% at September 30, 2017 compared to 0.28% at September 30, 2016.
Excluding purchased loans, the Bank’s ratio of loans and leases past due 30 days or more, including past due non-accrual loans and leases, to total loans and leases was a record 0.12% at September 30, 2017 compared to 0.17% at September 30, 2016.
The Bank’s annualized net charge-off ratio for all loans and leases was 0.09% for the third quarter of 2017 compared to 0.07% for the third quarter of 2016. The Bank’s annualized net charge-off ratio for all loans and leases was 0.08% for the first nine months of 2017 compared to 0.06% for the first nine months of 2016.
The Bank’s allowance for loan and lease losses for its non-purchased loans and leases was $85.2 million, or 0.71% of total non-purchased loans and leases, at September 30, 2017 compared to $68.2 million, or 0.78% of total non-purchased loans and leases, at September 30, 2016. The Bank had $1.6 million of allowance for loan and lease losses for its purchased loans at both September 30, 2017 and 2016.
CONFERENCE CALL, TRANSCRIPT AND FILINGS
Management will conduct a conference call to discuss its quarterly results at 10:00 a.m. CT (11:00 a.m. ET) on Wednesday, October 11, 2017. Interested parties may listen to this call by dialing 844-818-5110 (U.S. and Canada) or 210-229-8841 (internationally) and asking for the Bank of the Ozarks conference call. A recorded playback of the call will be available for one week following the call at 855-859-2056 (U.S. and Canada) or 404-537-3406 (internationally). The passcode for this playback is 83984173. The call will be available live or in a recorded version on the Bank’s Investor Relations website at http://ir.bankozarks.com under “Company News.” The Bank will also provide a transcript of the conference call on its Investor Relations website, which will be available for 90 days.
The Bank files certain reports, proxy materials, and other information required by the Securities and Exchange Act of 1934 with the Federal Deposit Insurance Corporation (“FDIC”), copies of which are available electronically at the FDIC’s website at http://www.fdic.gov and are also available on the Bank’s Investor Relations website at http://ir.bankozarks.com under “Filings.”
NON-GAAP FINANCIAL MEASURES
This release contains certain non-GAAP financial measures. The Bank uses these non-GAAP financial measures, specifically return on average tangible common stockholders’ equity, tangible book value per common share, total tangible common stockholders’ equity and the ratio of total tangible common stockholders’ equity to total tangible assets, as important measures of the strength of its capital and its ability to generate earnings on its tangible capital invested by its shareholders. These measures typically adjust GAAP financial measures to exclude intangible assets. Management believes presentation of these non-GAAP financial measures provides useful supplemental information which contributes to a proper understanding of the financial results and capital levels of the Bank. These non-GAAP disclosures should not be viewed as a substitute for financial results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other banks. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are included in the tables at the end of this release under the caption “Reconciliation of Non-GAAP Financial Measures.”
FORWARD-LOOKING STATEMENTS
This release and other communications by the Bank include certain “forward-looking statements” regarding the Bank’s plans, expectations, thoughts, beliefs, estimates, goals and outlook for the future that are intended to be covered by the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on management’s expectations as well as certain assumptions and estimates made by, and information available to, management at the time. Those statements are not guarantees of future results or performance and are subject to certain known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those expressed in, or implied by, such forward-looking statements. These risks, uncertainties and other factors include, but are not limited to: potential delays or other problems implementing the Bank’s growth, expansion and acquisition strategies including delays in identifying sites, hiring or retaining qualified personnel, obtaining regulatory or other approvals, obtaining permits and designing, constructing and opening new offices; the ability to enter into and/or close additional acquisitions; problems with, or additional expenses relating to, integrating acquisitions; the inability to realize expected cost savings and/or synergies from acquisitions; problems with managing acquisitions; the effect of the announcements of any future acquisition on customer relationships and operating results; the availability and access to capital; possible downgrades in the Bank’s credit ratings or outlook which could increase the costs or availability of funding from capital markets; the ability to attract new or retain existing or acquired deposits or to retain or grow loans and leases, including growth from unfunded closed loans; the ability to generate future revenue growth or to control future growth in non-interest expense; interest rate fluctuations, including changes in the yield curve between short-term and long-term interest rates; competitive factors and pricing pressures, including their effect on the Bank’s net interest margin; general economic, unemployment, credit market and real estate market conditions, and the effect of such conditions on the creditworthiness of borrowers and lessees, collateral values, the value of investment securities and asset recovery values; changes in legal, financial and/or regulatory requirements; recently enacted and potential legislation and regulatory actions and the costs and expenses to comply with new legislation and regulatory actions; changes in U.S. government monetary and fiscal policy; the ability to keep pace with technological changes, including changes regarding maintaining cybersecurity; the impact of failure in, or breach of, our operational or security systems or infrastructure, or those of third parties with whom we do business, including as a result of cyber-attacks or an increase in the incidence or severity of fraud, illegal payments, security breaches or other illegal acts impacting the Bank or its customers; adoption of new accounting standards or changes in existing standards; and adverse results (including costs, fines, reputational harm and/or other negative effects) from current or future litigation, regulatory examinations or other legal and/or regulatory actions as well as other factors identified in this press release or as detailed from time to time in our public filings, including those factors included in the disclosures under the headings “Forward-Looking Information” and “Item 1A. Risk Factors” in our most recent Annual Report on Form 10-K for the year ended December 31, 2016 or our Quarterly Reports on Form 10-Q. Should one or more of the foregoing risks materialize, or should underlying assumptions prove incorrect, actual results or outcomes may vary materially from those projected in, or implied by, such forward-looking statements. The Bank disclaims any obligation to update or revise any forward-looking statements based on the occurrence of future events, the receipt of new information or otherwise.
GENERAL INFORMATION
Bank of the Ozarks (NASDAQ: OZRK) is a regional bank providing innovative financial solutions delivered by expert bankers with a relentless pursuit of excellence. Bank of the Ozarks has been recognized as the #1 bank in the nation in its asset size for seven consecutive years. Headquartered in Little Rock, Arkansas, Bank of the Ozarks conducts operations through 252 offices in Arkansas, Georgia, Florida, North Carolina, Texas, Alabama, South Carolina, California and New York and had $20.77 billion in total assets at September 30, 2017. Bank of the Ozarks can be found at www.bankozarks.com and on Facebook, Twitter and LinkedIn or contacted at (501) 978-2265 or P. O. Box 8811, Little Rock, Arkansas 72231-8811.
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Bank of the Ozarks Selected Consolidated Financial Data (Dollars in Thousands, Except Per Share Amounts) Unaudited |
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| Three Months Ended
September 30, |
Nine Months Ended
September 30, |
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| 2017 | 2016 | % Change | 2017 | 2016 | % Change | |||||||||||||||||||
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Income statement data: |
||||||||||||||||||||||||
| Net interest income | $ | 209,722 | $ | 175,150 | 19.7 | % | $ | 602,598 | $ | 406,705 | 48.2 | % | ||||||||||||
| Provision for loan and lease losses | 7,777 | 7,086 | 9.8 | 18,814 | 13,937 | 35.0 | ||||||||||||||||||
| Non-interest income | 32,747 | 29,231 | 12.0 | 93,645 | 71,829 | 30.4 | ||||||||||||||||||
| Non-interest expense | 84,399 | 78,781 | 7.1 | 246,493 | 177,395 | 39.0 | ||||||||||||||||||
| Net income available to common stockholders | 96,007 | 76,030 | 26.3 | 275,727 | 182,193 | 51.3 | ||||||||||||||||||
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Common stock data: |
||||||||||||||||||||||||
| Net income per share - diluted | $ | 0.75 | $ | 0.66 | 13.6 | % | $ | 2.21 | $ | 1.84 | 20.1 | % | ||||||||||||
| Net income per share - basic | 0.75 | 0.66 | 13.6 |
2.21 |
1.84 | 20.7 | ||||||||||||||||||
| Cash dividends per share | 0.180 | 0.160 | 12.5 | 0.525 | 0.465 | 12.9 | ||||||||||||||||||
| Book value per share | 26.02 | 22.75 | 14.4 | 26.02 | 22.75 | 14.4 | ||||||||||||||||||
| Tangible book value per share(1) | 20.46 | 16.79 | 21.9 | 20.46 | 16.79 | 21.9 | ||||||||||||||||||
| Diluted shares outstanding (thousands) | 128,472 | 115,007 | 124,900 | 99,064 | ||||||||||||||||||||
| End of period shares outstanding (thousands) | 128,174 | 121,134 | 128,174 | 121,134 | ||||||||||||||||||||
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Balance sheet data at period end: |
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| Assets | $ | 20,768,493 | $ | 18,451,783 | 12.6 | % | $ | 20,768,493 | $ | 18,451,783 | 12.6 | % | ||||||||||||
| Non-purchased loans and leases | 12,047,094 | 8,759,766 | 37.5 | 12,047,094 | 8,759,766 | 37.5 | ||||||||||||||||||
| Purchased loans | 3,731,536 | 5,399,831 | (30.9 | ) | 3,731,536 | 5,399,831 | (30.9 | ) | ||||||||||||||||
| Allowance for loan and lease losses | 86,784 | 69,760 | 24.4 | 86,784 | 69,760 | 24.4 | ||||||||||||||||||
| Foreclosed assets | 28,016 | 44,250 | (36.7 | ) | 28,016 | 44,250 | (36.7 | ) | ||||||||||||||||
| Investment securities | 1,975,102 | 1,341,894 | 47.2 | 1,975,102 | 1,341,894 | 47.2 | ||||||||||||||||||
| Goodwill | 660,789 | 657,806 | 0.5 | 660,789 | 657,806 | 0.5 | ||||||||||||||||||
| Other intangibles - net of amortization | 51,396 | 64,347 | (20.1 | ) | 51,396 | 64,347 | (20.1 | ) | ||||||||||||||||
| Deposits | 16,823,359 | 15,123,804 | 11.2 | 16,823,359 | 15,123,804 | 11.2 | ||||||||||||||||||
| Repurchase agreements with customers | 70,165 | 70,640 | (0.7 | ) | 70,165 | 70,640 | (0.7 | ) | ||||||||||||||||
| Other borrowings | 42,404 | 41,978 | 1.0 | 42,404 | 41,978 | 1.0 | ||||||||||||||||||
| Subordinated notes | 222,802 | 222,420 | 0.2 | 222,802 | 222,420 | 0.2 | ||||||||||||||||||
| Subordinated debentures | 118,660 | 118,102 | 0.5 | 118,660 | 118,102 | 0.5 | ||||||||||||||||||
| Common stockholders’ equity | 3,334,740 | 2,756,346 | 21.0 | 3,334,740 | 2,756,346 | 21.0 | ||||||||||||||||||
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Net unrealized (losses) gains on investment securities AFS included in common stockholders' equity |
(5,626 | ) | 13,635 | (5,626 | ) | 13,635 | ||||||||||||||||||
| Loan and lease (including purchased loans) to deposit ratio | 93.79 | % | 93.62 | % | 93.79 | % | 93.62 | % | ||||||||||||||||
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Selected ratios: |
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| Return on average assets (2) | 1.89 | % | 1.80 | % | 1.91 | % | 1.88 | % | ||||||||||||||||
| Return on average common stockholders’ equity (2) | 11.56 | 12.18 | 12.10 | 13.27 | ||||||||||||||||||||
| Return on average tangible common stockholders’ equity (1) (2) | 14.76 | 16.01 | 15.81 | 15.88 | ||||||||||||||||||||
| Average common equity to total average assets | 16.35 | 14.74 | 15.77 | 14.15 | ||||||||||||||||||||
| Net interest margin – FTE (2) | 4.84 | 4.90 | 4.90 | 4.88 | ||||||||||||||||||||
| Efficiency ratio | 34.38 | 38.07 | 34.90 | 36.57 | ||||||||||||||||||||
| Net charge-offs to average non-purchased loans and leases (2) (3) | 0.08 | 0.06 | 0.06 | 0.06 | ||||||||||||||||||||
| Net charge-offs to average total loans and leases(2) | 0.09 | 0.07 | 0.08 | 0.06 | ||||||||||||||||||||
| Nonperforming loans and leases to total loans and leases(4) | 0.11 | 0.08 | 0.11 | 0.08 | ||||||||||||||||||||
| Nonperforming assets to total assets(4) | 0.20 | 0.28 | 0.20 | 0.28 | ||||||||||||||||||||
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Allowance for loan and lease losses to non-purchased loans and leases(4) |
0.71 | 0.78 | 0.71 | 0.78 | ||||||||||||||||||||
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Other information: |
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| Non-accrual loans and leases(4) | $ | 13,269 | $ | 7,428 | $ | 13,269 | $ | 7,428 | ||||||||||||||||
| Accruing loans and leases - 90 days past due(4) | — | — | — | — | ||||||||||||||||||||
| Troubled and restructured loans and leases(4) | — | — | — | — | ||||||||||||||||||||
| Impaired purchased loans | 9,502 | 6,048 | 9,502 | 6,048 | ||||||||||||||||||||
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(1) |
Calculations of tangible book value per common share and return on average tangible common stockholders’ equity and the reconciliations to GAAP are included in the schedules accompanying this release. |
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(2) |
Ratios for interim periods annualized based on actual days. |
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(3) |
Excludes purchased loans and net charge-offs related to such loans. |
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(4) |
Excludes purchased loans and any allowance for such loans, except for their inclusion in total assets. |
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Bank of the Ozarks Supplemental Quarterly Financial Data (Dollars in Thousands, Except Per Share Amounts) Unaudited |
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| 12/31/15 | 3/31/16 | 6/30/16 | 9/30/16 | 12/31/16 | 3/31/17 | 6/30/17 | 9/30/17 | ||||||||||||||||||||||||
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Earnings Summary: |
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| Net interest income | $ | 106,518 | $ | 112,517 | $ | 119,038 | $ | 175,150 | $ | 194,800 | $ | 190,771 | $ | 202,105 | $ | 209,722 | |||||||||||||||
| Federal tax (FTE) adjustment | 2,092 | 1,911 | 2,067 | 2,533 | 3,254 | 3,594 | 3,396 | 3,014 | |||||||||||||||||||||||
| Net interest income (FTE) | 108,610 | 114,428 | 121,105 | 177,683 | 198,054 | 194,365 | 205,501 | 212,736 | |||||||||||||||||||||||
| Provision for loan and lease losses | (5,211 | ) | (2,017 | ) | (4,834 | ) | (7,086 | ) | (9,855 | ) | (4,933 | ) | (6,103 | ) | (7,777 | ) | |||||||||||||||
| Non-interest income | 30,540 | 19,865 | 22,733 | 29,231 | 30,571 | 29,058 | 31,840 | 32,747 | |||||||||||||||||||||||
| Non-interest expense | (51,646 | ) | (47,686 | ) | (50,928 | ) | (78,781 | ) | (78,358 | ) | (78,268 | ) | (83,828 | ) | (84,399 | ) | |||||||||||||||
| Pretax income (FTE) | 82,293 | 84,590 | 88,076 | 121,047 | 140,412 | 140,222 | 147,410 | 153,307 | |||||||||||||||||||||||
| FTE adjustment | (2,092 | ) | (1,911 | ) | (2,067 | ) | (2,533 | ) | (3,254 | ) | (3,594 | ) | (3,396 | ) | (3,014 | ) | |||||||||||||||
| Provision for income taxes | (28,740 | ) | (30,984 | ) | (31,514 | ) | (42,470 | ) | (49,312 | ) | (47,417 | ) | (53,488 | ) | (54,246 | ) | |||||||||||||||
| Noncontrolling interest | (6 | ) | (7 | ) | (21 | ) | (14 | ) | (59 | ) | (23 | ) | 6 | (40 | ) | ||||||||||||||||
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Net income available to common stockholders
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$ | 51,455 | $ | 51,688 | $ | 54,474 | $ | 76,030 | $ | 87,787 | $ | 89,188 | $ | 90,532 | $ | 96,007 | |||||||||||||||
| Earnings per common share – diluted | $ | 0.57 | $ | 0.57 | $ | 0.60 | $ | 0.66 | $ | 0.72 | $ | 0.73 | $ | 0.73 | $ | 0.75 | |||||||||||||||
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Non-interest Income: |
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| Service charges on deposit accounts | $ | 7,558 | $ | 7,657 | $ | 8,119 | $ | 10,926 | $ | 11,759 | $ | 11,301 | $ | 11,764 | $ | 9,729 | |||||||||||||||
| Mortgage lending income | 1,713 | 1,284 | 2,057 | 2,616 | 2,097 | 1,574 | 1,910 | 1,620 | |||||||||||||||||||||||
| Trust income | 1,508 | 1,507 | 1,574 | 1,564 | 1,623 | 1,631 | 1,577 | 1,755 | |||||||||||||||||||||||
| BOLI income | 2,412 | 2,861 | 2,745 | 4,638 | 4,564 | 4,464 | 4,594 | 4,453 | |||||||||||||||||||||||
| Other income from purchased loans | 4,790 | 3,052 | 4,599 | 4,635 | 4,993 | 3,737 | 4,777 | 2,933 | |||||||||||||||||||||||
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Loan service, maintenance and other fees |
908 | 949 | 1,238 | 1,687 | 2,962 | 2,706 | 3,427 | 5,274 | |||||||||||||||||||||||
| Net gains on investment securities | 2,863 | — | — | — | 4 | — | 404 | 2,429 | |||||||||||||||||||||||
| Gains on sales of other assets | 7,463 | 1,027 | 998 | 594 | 1,537 | 1,619 | 672 | 1,363 | |||||||||||||||||||||||
| Other | 1,325 | 1,528 | 1,403 | 2,571 | 1,032 | 2,026 | 2,715 | 3,191 | |||||||||||||||||||||||
| Total non-interest income | $ | 30,540 | $ | 19,865 | $ | 22,733 | $ | 29,231 | $ | 30,571 | $ | 29,058 | $ | 31,840 | $ | 32,747 | |||||||||||||||
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Non-interest Expense: |
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| Salaries and employee benefits | $ | 21,504 | $ | 23,362 | $ | 24,921 | $ | 38,069 | $ | 36,481 | $ | 38,554 | $ | 39,892 | $ | 35,331 | |||||||||||||||
| Net occupancy expense | 8,537 | 8,531 | 8,388 | 11,669 | 13,936 | 13,192 | 12,937 | 13,595 | |||||||||||||||||||||||
| Other operating expenses | 19,879 | 14,067 | 16,062 | 26,447 | 24,783 | 23,377 | 27,854 | 32,328 | |||||||||||||||||||||||
| Amortization of intangibles | 1,726 | 1,726 | 1,557 | 2,596 | 3,158 | 3,145 | 3,145 | 3,145 | |||||||||||||||||||||||
| Total non-interest expense | $ | 51,646 | $ | 47,686 | $ | 50,928 | $ | 78,781 | $ | 78,358 | $ | 78,268 | $ | 83,828 | $ | 84,399 | |||||||||||||||
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Balance Sheet Data: |
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| Total assets | $ | 9,879,459 | $ | 11,427,419 | $ | 12,279,579 | $ | 18,451,783 | $ | 18,890,142 | $ | 19,152,212 | $ | 20,064,589 | $ | 20,768,493 | |||||||||||||||
| Non-purchased loans and leases | 6,528,634 | 7,591,339 | 8,214,900 | 8,759,766 | 9,605,093 | 10,216,875 | 11,025,203 | 12,047,094 | |||||||||||||||||||||||
| Purchased loans | 1,806,037 | 1,678,351 | 1,515,104 | 5,399,831 | 4,958,022 | 4,580,047 | 4,159,139 | 3,731,536 | |||||||||||||||||||||||
| Deposits | 7,971,468 | 9,626,825 | 10,195,072 | 15,123,804 | 15,574,878 | 15,713,427 | 16,241,440 | 16,823,359 | |||||||||||||||||||||||
| Common stockholders' equity | 1,464,631 | 1,508,080 | 1,556,921 | 2,756,346 | 2,791,607 | 2,873,317 | 3,260,123 | 3,334,740 | |||||||||||||||||||||||
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Allowance for Loan and Lease Losses: |
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| Balance at beginning of period | $ | 59,017 | $ | 60,854 | $ | 61,760 | $ | 65,133 | $ | 69,760 | $ | 76,541 | $ | 78,224 | $ | 82,320 | |||||||||||||||
| Net charge-offs | (3,374 | ) | (1,111 | ) | (1,461 | ) | (2,459 | ) | (3,074 | ) | (3,250 | ) | (2,007 | ) | (3,313 | ) | |||||||||||||||
| Provision for loan and lease losses | 5,211 | 2,017 | 4,834 | 7,086 | 9,855 | 4,933 | 6,103 | 7,777 | |||||||||||||||||||||||
| Balance at end of period | $ | 60,854 | $ | 61,760 | $ | 65,133 | $ | 69,760 | $ | 76,541 | $ | 78,224 | $ | 82,320 | $ | 86,784 | |||||||||||||||
|
Selected Ratios: |
|||||||||||||||||||||||||||||||
| Net interest margin – FTE (1) | 4.98 | % | 4.92 | % | 4.82 | % | 4.90 | % | 5.02 | % | 4.88 | % | 4.99 | % | 4.84 | % | |||||||||||||||
| Efficiency ratio | 37.12 | 35.51 | 35.41 | 38.07 | 34.27 | 35.03 | 35.32 | 34.38 | |||||||||||||||||||||||
|
Net charge-offs to average non-purchased loans and leases (1) (2) |
0.22 | 0.06 | 0.05 | 0.06 | 0.08 | 0.05 | 0.03 | 0.08 | |||||||||||||||||||||||
|
Net charge-offs to average total loans and leases (1) |
0.17 | 0.05 | 0.06 | 0.07 | 0.09 | 0.09 | 0.05 | 0.09 | |||||||||||||||||||||||
|
Nonperforming loans and leases to total loans and leases (3) |
0.20 | 0.15 | 0.09 | 0.08 | 0.15 | 0.11 | 0.11 | 0.11 | |||||||||||||||||||||||
| Nonperforming assets to total assets (3) | 0.37 | 0.29 | 0.25 | 0.28 | 0.31 | 0.25 | 0.23 | 0.20 | |||||||||||||||||||||||
|
Allowance for loan and lease losses to total non-purchased loans and leases (3) |
0.91 | 0.80 | 0.78 | 0.78 | 0.78 | 0.75 | 0.73 | 0.71 | |||||||||||||||||||||||
|
Loans and leases past due 30 days or more, including past due non-accrual loans and leases, to total loans and leases (3) |
0.28 | 0.23 | 0.22 | 0.17 | 0.16 | 0.16 | 0.15 | 0.12 | |||||||||||||||||||||||
|
(1) |
Ratios for interim periods annualized based on actual days. |
|
(2) |
Excludes purchased loans and net charge-offs related to such loans. |
|
(3) |
Excludes purchased loans and any allowance for such loans, except for their inclusion in total assets. |
|
Bank of the Ozarks Average Consolidated Balance Sheets and Net Interest Analysis – FTE Unaudited |
||||||||||||||||||||||||||||||||||||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||
| 2017 | 2016 | 2017 | 2016 | |||||||||||||||||||||||||||||||||||||||||||||
| Average
Balance |
Income/
Expense |
Yield/
Rate |
Average
Balance |
Income/
Expense |
Yield/
Rate |
Average
Balance |
Income/
Expense |
Yield/
Rate |
Average
Balance |
Income/
Expense |
Yield/
Rate |
|||||||||||||||||||||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||
| ASSETS | ||||||||||||||||||||||||||||||||||||||||||||||||
| Earning assets: | ||||||||||||||||||||||||||||||||||||||||||||||||
|
Interest earning deposits and federal funds sold |
$ | 102,972 | $ | 253 | 0.98 | % | $ | 58,786 | $ | 133 | 0.90 | % | $ | 89,930 | $ | 388 | 0.58 | % | $ | 22,860 | $ | 151 | 0.89 | % | ||||||||||||||||||||||||
| Investment securities: | ||||||||||||||||||||||||||||||||||||||||||||||||
| Taxable | 1,397,768 | 7,802 | 2.21 | 615,459 | 3,102 | 2.01 | 936,059 | 15,799 | 2.26 | 391,998 | 7,814 | 2.66 | ||||||||||||||||||||||||||||||||||||
| Tax-exempt – FTE | 703,873 | 8,351 | 4.71 | 562,511 | 6,999 | 4.95 | 760,401 | 27,827 | 4.89 | 439,612 | 18,013 | 5.47 | ||||||||||||||||||||||||||||||||||||
|
Non-purchased loans and leases – FTE |
11,248,314 | 159,701 | 5.63 | 8,499,333 | 109,448 | 5.12 | 10,536,436 | 429,287 | 5.45 | 7,770,259 | 294,616 | 5.06 | ||||||||||||||||||||||||||||||||||||
| Purchased loans | 3,988,881 | 68,473 | 6.81 | 4,695,139 | 77,208 | 6.54 | 4,392,955 | 220,196 | 6.70 | 2,696,890 | 132,942 | 6.58 | ||||||||||||||||||||||||||||||||||||
|
Total earning assets – FTE |
17,441,808 | 244,580 | 5.56 | 14,431,228 | 196,890 | 5.43 | 16,715,781 | 693,497 | 5.55 | 11,321,619 | 453,536 | 5.35 | ||||||||||||||||||||||||||||||||||||
| Non-interest earning assets | 2,714,176 | 2,418,569 | 2,613,342 | 1,636,012 | ||||||||||||||||||||||||||||||||||||||||||||
| Total assets | $ | 20,155,984 | $ | 16,849,797 | $ | 19,329,123 | $ | 12,957,631 | ||||||||||||||||||||||||||||||||||||||||
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
||||||||||||||||||||||||||||||||||||||||||||||||
| Interest bearing liabilities: | ||||||||||||||||||||||||||||||||||||||||||||||||
| Deposits: | ||||||||||||||||||||||||||||||||||||||||||||||||
|
Savings and interest bearing transaction |
$ | 8,972,419 | $ | 16,074 | 0.71 | % | $ | 6,865,627 | $ | 6,086 | 0.35 | % | $ | 8,310,430 | $ | 35,445 | 0.57 | % | $ | 5,412,015 | $ | 13,866 | 0.34 | % | ||||||||||||||||||||||||
|
Time deposits of $100,000 or more |
3,164,875 | 8,135 | 1.02 | 2,967,149 | 6,012 | 0.81 | 3,205,799 | 23,003 | 0.96 | 2,180,783 | 13,099 | 0.80 | ||||||||||||||||||||||||||||||||||||
| Other time deposits | 1,518,430 | 2,868 | 0.75 | 1,713,471 | 2,437 | 0.57 | 1,596,332 | 8,485 | 0.71 | 1,340,744 | 5,633 | 0.56 | ||||||||||||||||||||||||||||||||||||
|
Total interest bearing deposits |
13,655,724 | 27,077 | 0.79 | 11,546,247 | 14,535 | 0.50 | 13,112,561 | 66,933 | 0.68 | 8,933,542 | 32,598 | 0.49 | ||||||||||||||||||||||||||||||||||||
|
Repurchase agreements with customers |
73,026 | 33 | 0.18 | 59,910 | 22 | 0.15 | 76,481 | 93 | 0.16 | 62,156 | 64 | 0.14 | ||||||||||||||||||||||||||||||||||||
| Other borrowings | 42,433 | 255 | 2.39 | 42,004 | 286 | 2.71 | 42,312 | 732 | 2.31 | 48,628 | 880 | 2.42 | ||||||||||||||||||||||||||||||||||||
| Subordinated notes | 222,749 | 3,190 | 5.68 | 222,369 | 3,259 | 5.83 | 222,658 | 9,430 | 5.66 | 81,159 | 3,542 | 5.83 | ||||||||||||||||||||||||||||||||||||
| Subordinated debentures | 118,582 | 1,289 | 4.31 | 118,028 | 1,105 | 3.72 | 118,445 | 3,707 | 4.18 | 117,889 | 3,237 | 3.67 | ||||||||||||||||||||||||||||||||||||
|
Total interest bearing liabilities |
14,112,514 | 31,844 | 0.90 | 11,988,558 | 19,207 | 0.64 | 13,572,457 | 80,895 | 0.80 | 9,243,374 | 40,321 | 0.58 | ||||||||||||||||||||||||||||||||||||
| Non-interest bearing liabilities: | ||||||||||||||||||||||||||||||||||||||||||||||||
| Non-interest bearing deposits | 2,662,265 | 2,303,728 | 2,627,214 | 1,819,530 | ||||||||||||||||||||||||||||||||||||||||||||
|
Other non-interest bearing liabilities |
82,764 | 71,132 | 79,056 | 57,609 | ||||||||||||||||||||||||||||||||||||||||||||
| Total liabilities | 16,857,543 | 14,363,418 | 16,278,727 | 11,120,513 | ||||||||||||||||||||||||||||||||||||||||||||
| Common stockholders’ equity | 3,295,394 | 2,483,181 | 3,047,279 | 1,833,933 | ||||||||||||||||||||||||||||||||||||||||||||
| Noncontrolling interest | 3,047 | 3,198 | 3,117 | 3,185 | ||||||||||||||||||||||||||||||||||||||||||||
|
Total liabilities and stockholders’ equity |
$ | 20,155,984 | $ | 16,849,797 | $ | 19,329,123 | $ | 12,957,631 | ||||||||||||||||||||||||||||||||||||||||
| Net interest income – FTE | $ | 212,736 | $ | 177,683 | $ | 612,602 | $ | 413,215 | ||||||||||||||||||||||||||||||||||||||||
| Net interest margin – FTE | 4.84 | % | 4.90 | % | 4.90 | % | 4.88 | % | ||||||||||||||||||||||||||||||||||||||||
|
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
Bank of the Ozarks Calculation of Average Tangible Common Stockholders’ Equity and the Return on Average Tangible Common Stockholders’ Equity Unaudited |
||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| 2017 | 2016 | 2017 | 2016 | |||||||||||||
| (Dollars in thousands) | ||||||||||||||||
| Net income available to common stockholders | $ | 96,007 | $ | 76,030 | $ | 275,727 | $ | 182,193 | ||||||||
| Average common stockholders’ equity before
noncontrolling interest |
$ | 3,295,394 | $ | 2,483,181 | $ | 3,047,279 | $ | 1,833,933 | ||||||||
| Less average intangible assets: | ||||||||||||||||
| Goodwill | (660,789 | ) | (538,583 | ) | (659,871 | ) | (264,306 | ) | ||||||||
|
Core deposit and other intangibles, net of accumulated amortization |
(53,128 | ) | (55,693 | ) | (56,311 | ) | (36,844 | ) | ||||||||
| Total average intangibles | (713,917 | ) | (594,276 | ) | (716,182 | ) | (301,150 | ) | ||||||||
| Average tangible common stockholders’ equity | $ | 2,581,477 | $ | 1,888,905 | $ | 2,331,097 | $ | 1,532,783 | ||||||||
| Return on average common stockholders’ equity(1) | 11.56 | % | 12.18 | % | 12.10 | % | 13.27 | % | ||||||||
| Return on average tangible common stockholders’ equity(1) | 14.76 | % | 16.01 | % | 15.81 | % | 15.88 | % | ||||||||
|
(1) |
Ratios for interim periods annualized based on actual days. |
|
Bank of the Ozarks Calculation of Total Tangible Common Stockholders’ Equity and Tangible Book Value per Common Share Unaudited |
|||||||||||||
| September 30, | |||||||||||||
| 2017 | 2016 | ||||||||||||
| (In thousands, except per share amounts) | |||||||||||||
| Total common stockholders’ equity before noncontrolling interest | $ | 3,334,740 | $ | 2,756,346 | |||||||||
| Less intangible assets: | |||||||||||||
| Goodwill | (660,789 | ) | (657,806 | ) | |||||||||
| Core deposit and other tangible assets, net of accumulated amortization | (51,396 | ) | (64,347 | ) | |||||||||
| Total intangibles | (712,185 | ) | (722,153 | ) | |||||||||
| Total tangible common stockholders’ equity | $ | 2,622,555 | $ | 2,034,193 | |||||||||
| Shares of common stock outstanding | 128,174 | 121,134 | |||||||||||
| Book value per common share | $ | 26.02 | $ | 22.75 | |||||||||
| Tangible book value per common share | $ | 20.46 | $ | 16.79 | |||||||||
|
Bank of the Ozarks Calculation of Total Tangible Common Stockholders’ Equity and the Ratio of Total Tangible Common Stockholders’ Equity to Total Tangible Assets Unaudited |
|||||||||||||
| September 30, | |||||||||||||
| 2017 | 2016 | ||||||||||||
| (Dollars in thousands) | |||||||||||||
| Total common stockholders’ equity before noncontrolling interest | $ | 3,334,740 | $ | 2,756,346 | |||||||||
| Less intangible assets: | |||||||||||||
| Goodwill | (660,789 | ) | (657,806 | ) | |||||||||
| Core deposit and other intangible assets, net of accumulated amortization | (51,396 | ) | (64,347 | ) | |||||||||
| Total intangibles | (712,185 | ) | (722,153 | ) | |||||||||
| Total tangible common stockholders’ equity | $ | 2,622,555 | $ | 2,034,193 | |||||||||
| Total assets | $ | 20,768,493 | $ | 18,451,783 | |||||||||
| Less intangible assets: | |||||||||||||
| Goodwill | (660,789 | ) | (657,806 | ) | |||||||||
| Core deposit and other intangible assets, net of accumulated amortization | (51,396 | ) | (64,347 | ) | |||||||||
| Total intangibles | (712,185 | ) | (722,153 | ) | |||||||||
| Total tangible assets | $ | 20,056,308 | $ | 17,729,630 | |||||||||
| Ratio of total common stockholders’ equity to total assets | 16.06 | % | 14.94 | % | |||||||||
|
Ratio of total tangible common stockholders’ equity to total tangible assets |
13.08 | % | 11.47 | % | |||||||||
View source version on businesswire.com: http://www.businesswire.com/news/home/20171011005176/en/
Bank of the Ozarks
Media Contact:
Susan Blair, 501-978-2217
or
Investor Contact:
Tim Hicks, 501-978-2336
Source: Bank of the Ozarks