Bank of the Ozarks reported a 26% increase in first quarter 2014 net income as the Little Rock-based financial institution saw an unexpected bump in seasonal loan activity.
First quarter profits topped $25.3 million, up from $20 million one year ago. Diluted earnings per common share for the first quarter of 2014 were 68 cents, a 21.4% increase from 56 cents for the first quarter of 2013.
There were also three unusual items in first quarter earnings. Bank of the Ozarks recorded a $4.7 million gain on its acquisition of Texas-based Bancshares, Inc., parent company of OmniBank. Bank of the Ozarks also incurred $3.5 million in one-time charges for acquisition-related costs and new banking software.
“We are pleased to report our excellent first quarter results. While our results reflect some of the headwinds typically encountered during the first quarter, our excellent loan and lease growth, our favorable asset quality as shown by our net charge-off ratio, and our record trust income provided a great start for 2014,” said CEO George Gleason.
“Our balance of loans and leases outstanding, excluding covered loans and purchased non-covered loans, increased $146 million in the quarter just ended, reflecting unusually strong growth for the first quarter, which has been a quarter of minimal growth in most years,” he added.
Bank of the Ozarks announced in January that it would purchase Arkadelphia-based Summit Bank for $216 million.
Additional financial highlights included:
• Total loans and leases were $3.57 billion at March 31, 2014, a 30.4% increase from $2.74 billion at March 31, 2013.
• Deposits were $3.92 billion at March 31, 2014, a 30.9% increase compared to $2.99 billion at March 31, 2013.
• Total assets were $5.03 billion at March 31, 2014, a 27.3% increase compared to $3.95 billion at March 31, 2013.
• Net interest income for the first quarter of 2014 was $52.4 million, an 18.7% increase from $44.1 million for the first quarter of 2013, but a 5.2% decrease from $55.3 million for the fourth quarter of 2013.
• Non-interest income for the first quarter of 2014 increased 24.5% to $20.4 million compared to $16.4 million for the first quarter of 2013.
Bank of the Ozarks (NASDAQ: OZRK) shares closed trading on Monday at $62.85. The company’s stock has traded between $39.45 and $70.49 per share during the past year.