Bank of the Ozarks saw its second quarter profits decline substantially from a year ago due to one-time charges from two FDIC transactions.
The Little Rock-based bank reported net income of $19.1 million in the second quarter of 2012 versus $50.2 million one year ago. During the second quarter of 2011, Bank of the Ozarks made two FDIC-assisted acquisitions which resulted in a gain of approximately $36.4 million after taxes.
For the six months ended June 30, 2012, net income totaled $37.1 million, a 42.8% decrease from net income of $64.8 million for the first six months of 2011. Diluted earnings per common share for the first six months of 2012 were $1.06, a 43.6% decrease from $1.88 for the first six months of 2011.
“We are very pleased to report our excellent results for the quarter just ended,” said Chairman and CEO George Gleason.
“As we had expected, growth in non-covered loans and leases was robust. Asset quality, which has been one of our traditional strengths, got even better as evidenced by improvement in our asset quality ratios to the best levels in four years. Our net interest margin continued to be among the best in the industry. We had excellent results in almost every category of non-interest income, and our non-interest expense declined for the fourth consecutive quarter. Even more important, we believe we are well-positioned for future growth and profitability,” Gleason added.
Highlights from the quarter included:
• Loans and leases, excluding loans covered by FDIC loss share agreements (“covered loans”), were $1.98 billion at June 30, 2012, a 10.0% increase compared to $1.80 billion at June 30, 2011.
• Including covered loans, total loans and leases were $2.69 billion at June 30, 2012, a 0.4% decrease from $2.70 billion at June 30, 2011.
• Deposits were $2.81 billion at June 30, 2012, an 11.4% decrease compared to $3.17 billion at June 30, 2011.
• Total assets were $3.76 billion at June 30, 2012, a 6.5% decrease compared to $4.03 billion at June 30, 2011.
• Net interest income for the second quarter of 2012 decreased 0.4% to $42.3 million compared to $42.5 million for the second quarter of 2011 and decreased 3.5% compared to $43.8 million in the first quarter of 2012.
• Non-interest income for the second quarter of 2012 decreased 79.1% to $15.7 million compared to $75.1 million for the second quarter of 2011 but increased 13.8% compared to $13.8 million for the first quarter of 2012.
Bank of the Ozarks stock closed trading Thursday at $30.39 per share. The company’s stock has traded between a low of $19.14 and a high of $32.26 per share during the past 12 months. On August 16, 2011 the company completed a 2-for-1 stock split.