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Bank of the Ozarks, Inc.$41.24($.88)(2.09%)

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 Bank of the Ozarks Announces Record Fourth Quarter and Full Year 2017 Earnings
   Tuesday, January 16, 2018 7:00:02 AM ET

Bank of the Ozarks (the "Bank") (OZRK ) today announced that net income for the fourth quarter of 2017 was a record $146.2 million, a 66.5% increase from $87.8 million for the fourth quarter of 2016. Diluted earnings per common share for the fourth quarter of 2017 were a record $1.14, a 58.3% increase from $0.72 for the fourth quarter of 2016.

For the full year of 2017, net income was a record $421.9 million, a 56.3% increase from net income of $270.0 million for the full year of 2016. Diluted earnings per common share for the full year of 2017 were a record $3.35, a 29.8% increase from $2.58 for the full year of 2016.

As a result of the Tax Cuts and Jobs Act that was enacted into law on December 22, 2017, the Bank revalued its net deferred tax liability position to reflect the reduction in its federal corporate income tax rate from 35% to 21%. This revaluation resulted in a one-time income tax benefit of approximately $49.8 million, or $0.39 of diluted earnings per common share, for the fourth quarter of 2017.



The Bank’s annualized returns on average assets, average common stockholders’ equity and average tangible common stockholders’ equity for the fourth quarter of 2017 were 2.81%, 17.23% and 21.84%, respectively, compared to 1.92%, 12.62% and 17.08%, respectively, for the fourth quarter of 2016. The Bank’s returns on average assets, average common stockholders’ equity and average tangible common stockholders’ equity for the full year of 2017 were 2.15%, 13.49% and 17.49%, respectively, compared to 1.89%, 13.05% and 16.25%, respectively, for the full year 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 our excellent results for 2017, including annual records for net income, diluted earnings per share and net interest income, excellent asset quality and continued strong growth in both the funded and unfunded balance of our non-purchased loans."

KEY BALANCE SHEET METRICS

Total loans, including purchased loans, were $16.04 billion at December 31, 2017, a 10.2% increase from $14.56 billion at December 31, 2016. Non-purchased loans, which exclude loans acquired in previous acquisitions, were $12.73 billion at December 31, 2017, a 32.6% increase from $9.61 billion at December 31, 2016. Purchased loans, which consist of loans acquired in previous acquisitions, were $3.31 billion at December 31, 2017, a 33.3% decrease from $4.96 billion at December 31, 2016. The unfunded balance of closed loans totaled $13.19 billion at December 31, 2017, a 31.0% increase from $10.07 billion at December 31, 2016.

Deposits were $17.19 billion at December 31, 2017, a 10.4% increase from $15.57 billion at December 31, 2016. Total assets were $21.28 billion at December 31, 2017, a 12.6% increase from $18.89 billion at December 31, 2016.

Common stockholders’ equity was $3.46 billion at December 31, 2017, a 24.0% increase from $2.79 billion at December 31, 2016. Tangible common stockholders’ equity was $2.75 billion at December 31, 2017, a 32.9% increase from $2.07 billion at December 31, 2016. Book value per common share was $26.98 at December 31, 2017, a 17.2% increase from $23.02 at December 31, 2016. Tangible book value per common share was $21.45 at December 31, 2017, a 25.6% increase from $17.08 at December 31, 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 16.27% at December 31, 2017 compared to 14.78% at December 31, 2016. Its ratio of tangible common stockholders’ equity to total tangible assets was 13.38% at December 31, 2017 compared to 11.40% at December 31, 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 fourth quarter of 2017 was a record $214.8 million, a 10.3% increase from $194.8 million for the fourth quarter of 2016. Net interest margin, on a fully taxable equivalent ("FTE") basis, was 4.72% for the fourth quarter of 2017, a decrease of 30 basis points from 5.02% for the fourth quarter of 2016. Average earning assets were $18.28 billion for the fourth quarter of 2017, a 16.5% increase from $15.69 billion for the fourth quarter of 2016.

Net interest income for the full year of 2017 was a record $817.4 million, a 35.9% increase from $601.5 million for the full year of 2016. Net interest margin, on a FTE basis, was 4.85% for the full year of 2017, a decrease of seven basis points from 4.92% for the full year of 2016. Average earning assets were $17.11 billion for the full year of 2017, a 37.8% increase from $12.42 billion for the full year of 2016.

NON-INTEREST INCOME

Non-interest income for the fourth quarter of 2017 decreased 1.2% to $30.2 million compared to $30.6 million for the fourth quarter of 2016. Non-interest income for the full year of 2017 increased 21.0% to $123.9 million compared to $102.4 million for the full year of 2016.

Included in non-interest income were gains on investment securities totaling $1.2 million for the fourth quarter of 2017 and $4.0 million for the full year of 2017, compared to no significant gains on investment securities for the fourth quarter or full year of 2016.

NON-INTEREST EXPENSE

Non-interest expense for the fourth quarter of 2017 increased 10.0% to $86.2 million compared to $78.4 million for the fourth quarter of 2016. Non-interest expense for the full year of 2017 increased 30.1% to $332.7 million compared to $255.8 million for the full year of 2016.

During the fourth quarter of 2017, the Bank incurred $1.14 million of employee severance expenses associated with the elimination of the small ticket equipment finance group in its Leasing Division, the elimination of the secondary market mortgage loan group in its Mortgage Division and other restructuring of staff.

The Bank’s efficiency ratio (non-interest expense divided by the sum of net interest income FTE and non-interest income) for the fourth quarter of 2017 was 34.8% compared to 34.3% for the fourth quarter of 2016. The Bank’s efficiency ratio for the full year of 2017 was 34.9% compared to 35.8% for the full year of 2016.

ASSET QUALITY, CHARGE-OFFS AND ALLOWANCE

Excluding purchased loans, the Bank’s ratio of nonperforming loans as a percent of total loans was 0.10% at December 31, 2017 compared to 0.15% at December 31, 2016.

Excluding purchased loans, the Bank’s ratio of nonperforming assets as a percent of total assets was 0.18% at December 31, 2017 compared to 0.31% at December 31, 2016.

Excluding purchased loans, the Bank’s ratio of loans past due 30 days or more, including past due non-accrual loans, to total loans was 0.15% at December 31, 2017 compared to 0.16% at December 31, 2016.

The Bank’s annualized net charge-off ratio for all loans was 0.05% for the fourth quarter of 2017 compared to 0.09% for the fourth quarter of 2016. The Bank’s net charge-off ratio for all loans was 0.07% for both the full years of 2017 and 2016.

The Bank’s allowance for loan losses for its non-purchased loans was $92.5 million, or 0.73% of total non-purchased loans, at December 31, 2017 compared to $74.9 million, or 0.78% of total non-purchased loans, at December 31, 2016. The Bank had $1.6 million of allowance for loan losses for its purchased loans at both December 31, 2017 and December 31, 2016.

CONFERENCE CALL, TRANSCRIPT AND FILINGS

Management will conduct a conference call to discuss its quarterly and year end results at 10:00 a.m. CT (11:00 a.m. ET) on Tuesday, January 16, 2018. Interested parties may listen to this call by dialing 1-844-818-5110 (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 1-888-859-2056 (U.S. and Canada) or 404-537-3406 (internationally). The passcode for this playback is 7979578. 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.

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, 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, collateral values, the value of investment securities and asset recovery values; failure to receive approval of our pending applications for change in accounting methods with the Internal Revenue Service; 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 and/or existing 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; FDIC special assessments or changes to regular assessments; 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 or rulings 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 (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 253 offices in Arkansas, Georgia, Florida, North Carolina, Texas, Alabama, South Carolina, California, New York, and Mississippi. 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.

 
                                                                                                                                                                                              Bank of the Ozarks
                                                                                                                                                                                     Selected Consolidated Financial Data
                                                                                                                                                                               (Dollars in Thousands, Except Per Share Amounts)
                                                                                                                                                                                                   Unaudited
                                                                                                                                                                                                                                   
                                                                                                                                                           Quarters Ended December 31,                                                                                                            Years Ended December 31,                                             
                                                                                                                 -----------------------------------------------------------------------------------------------------------------------------------                      -----------------------------------------------------------------------------------------------------------------------------------
                                                                                                                        2017                   2016                     % Change                                        2017                   2016                     % Change           
                                                                                                                 ------------------                        ------------------                        -----------------------------------------------                      ------------------                        ------------------                        -----------------------------------------------
Income statement data:                                                                                                                                                                                                                                                                                                                      
-------------------------------------------------------------------------------------------
  Net interest income                                                                                             $        214,831                          $        194,800                                               10.3 %                                          $        817,429                          $        601,505                                               35.9 %
  Provision for loan losses                                                                                                  9,279                                     9,855                                               (5.8 )                                                    28,092                                    23,792                                               18.1
  Non-interest income                                                                                                       30,213                                    30,571                                               (1.2 )                                                   123,858                                   102,399                                               21.0
  Non-interest expense                                                                                                      86,177                                    78,358                                               10.0                                                     332,672                                   255,754                                               30.1
  Net income available to common stockholders                                                                              146,164                                    87,787                                               66.5                                                     421,891                                   269,979                                               56.3
Common stock data:
-------------------------------------------------------------------------------------------
  Net income per share - diluted                                                                                  $           1.14                          $           0.72                                               58.3 %                                          $           3.35                          $           2.58                                               29.8 %
  Net income per share - basic                                                                                                1.14                                      0.72                                               58.3                                                        3.36                                      2.59                                               29.7
  Cash dividends per share                                                                                                   0.185                                     0.165                                               12.1                                                        0.71                                      0.63                                               12.7
  Book value per share                                                                                                       26.98                                     23.02                                               17.2                                                       26.98                                     23.02                                               17.2
  Tangible book value per share(1)                                                                                           21.45                                     17.08                                               25.6                                                       21.45                                     17.08                                               25.6
  Diluted shares outstanding (thousands)                                                                                   128,510                                   121,476                                                                                                        125,809                                   104,700
  End of period shares outstanding (thousands)                                                                             128,288                                   121,268                                                                                                        128,288                                   121,268
Balance sheet data at period end:
-------------------------------------------------------------------------------------------
  Assets                                                                                                          $     21,275,647                          $     18,890,142                                               12.6 %                                          $     21,275,647                          $     18,890,142                                               12.6 %
  Non-purchased loans                                                                                                   12,733,937                                 9,605,093                                               32.6                                                  12,733,937                                 9,605,093                                               32.6
  Purchased loans                                                                                                        3,309,092                                 4,958,022                                              (33.3 )                                                 3,309,092                                 4,958,022                                              (33.3 )
  Allowance for loan losses                                                                                                 94,120                                    76,541                                               23.0                                                      94,120                                    76,541                                               23.0
  Foreclosed assets                                                                                                         25,357                                    43,702                                              (42.0 )                                                    25,357                                    43,702                                              (42.0 )
  Investment securities                                                                                                  2,622,796                                 1,471,612                                               78.2                                                   2,622,796                                 1,471,612                                               78.2
  Goodwill                                                                                                                 660,789                                   660,119                                                0.1                                                     660,789                                   660,119                                                0.1
  Other intangibles - net of amortization                                                                                   48,251                                    60,831                                              (20.7 )                                                    48,251                                    60,831                                              (20.7 )
  Deposits                                                                                                              17,192,345                                15,574,878                                               10.4                                                  17,192,345                                15,574,878                                               10.4
  Repurchase agreements with customers                                                                                      69,331                                    65,110                                                6.5                                                      69,331                                    65,110                                                6.5
  Other borrowings                                                                                                          22,320                                    41,903                                              (46.7 )                                                    22,320                                    41,903                                              (46.7 )
  Subordinated notes                                                                                                       222,899                                   222,516                                                0.2                                                     222,899                                   222,516                                                0.2
  Subordinated debentures                                                                                                  118,800                                   118,242                                                0.5                                                     118,800                                   118,242                                                0.5
  Common stockholders’ equity                                                                 3,460,728                                 2,791,607                                               24.0                                                   3,460,728                                 2,791,607                                               24.0
  Net unrealized gains (losses) on investment securities AFS                                                                (9,304 )                                 (25,920 )                                                                                                       (9,304 )                                 (25,920 )
  included in common stockholders’ equity
  Loan (including purchased loans) to deposit ratio                                                                          93.31 %                                   93.50 %                                                                                                        93.31 %                                   93.50 %
Selected ratios:
-------------------------------------------------------------------------------------------
  Return on average assets (2)                                                                                                2.81 %                                    1.92 %                                                                                                         2.15 %                                    1.89 %
  Return on average common stockholders’ equity (2)                                               17.23                                     12.62                                                                                                          13.49                                     13.05
  Return on average tangible common stockholders’ equity (1) (2)                                  21.84                                     17.08                                                                                                          17.49                                     16.25
  Average common equity to total average assets                                                                              16.32                                     15.21                                                                                                          15.91                                     14.49
  Net interest margin - FTE (2)                                                                                  4.72                                      5.02                                                                                                           4.85                                      4.92
  Efficiency ratio                                                                                                           34.82                                     34.27                                                                                                          34.88                                     35.84
  Net charge-offs to average non-purchased loans(2) (3)                                                                       0.08                                      0.08                                                                                                           0.06                                      0.06
  Net charge-offs to average total loans(2)                                                                                   0.05                                      0.09                                                                                                           0.07                                      0.07
  Nonperforming loans to total loans(4)                                                                                       0.10                                      0.15                                                                                                           0.10                                      0.15
  Nonperforming assets to total assets(4)                                                                                     0.18                                      0.31                                                                                                           0.18                                      0.31
  Allowance for loan losses to non-purchased                                                                                  0.73                                      0.78                                                                                                           0.73                                      0.78
  loans(4)
Other information:
-------------------------------------------------------------------------------------------
  Non-accrual loans(4)                                                                                            $         12,899                          $         14,371                                                                                               $         12,899                          $         14,371
  Accruing loans - 90 days past due(4)                                                                              --                            --                                                                                                 --                            --
  Troubled and restructured loans (4)                                                                               --                            --                                                                                                 --                            --
  Impaired purchased loans                                                                                                  10,019                                     6,516                                                                                                         10,019                                     6,516
(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.
(2)Ratios for interim periods annualized based on
actual days.
(3)Excludes purchased loans and net charge-offs related
to such loans.
(4)Excludes purchased loans and any allowance for such
loans, except for their inclusion in total assets.
 
                                                                                                                                                                                                                                     Bank of the Ozarks
                                                                                                                                                                                                                                     Supplemental Quarterly Financial Data
                                                                                                                                                                                                                                     (Dollars in Thousands, Except Per Share Amounts)
                                                                                                                                                                                                                                     Unaudited
                                                                                                                                                                                                                                                                                                                                
                                                                                       3/31/16                                                    6/30/16                                                    9/30/16                                                 12/31/16                                                  3/31/17                               6/30/17                                                9/30/17                                               12/31/17
                                                                        ------------------------------------                       ------------------------------------                       ------------------------------------                       --------------------------------                       ------------------------------------  -------------------- --------------------------------                       --------------------------------                       --------------------------------
Earnings Summary:
--------------------------------------------------
  Net interest income                                                                      $        112,517                                           $        119,038                                           $        175,150                                           $    194,800                                           $        190,771                                           $    202,105                                           $    209,722                                           $    214,831
  Federal tax (FTE) adjustment                                                     1,911                                   2,067                                   2,533                               3,254                                   3,594            3,396                               3,014                               2,450
                                                                        -------------------- --------------                        -------------------- --------------                        -------------------- --------------                        -------------------- ----------                        -------------------- --------------   -------------------- -------------------- ----------                        -------------------- ----------                        -------------------- ----------
  Net interest income (FTE)                                                                         114,428                                                    121,105                                                    177,683                                                198,054                                                    194,365                                                205,501                                                212,736                                                217,281
  Provision for loan losses                                                                          (2,017 )                                                   (4,834 )                                                   (7,086 )                                               (9,855 )                                                   (4,933 )                                               (6,103 )                                               (7,777 )                                               (9,279 )
  Non-interest income                                                                                19,865                                                     22,733                                                     29,231                                                 30,571                                                     29,058                                                 31,840                                                 32,747                                                 30,213
  Non-interest expense                                                           (47,686 )                               (50,928 )                               (78,781 )                           (78,358 )                               (78,268 )        (83,828 )                           (84,399 )                           (86,177 )
                                                                        -------------------- --------------                        -------------------- --------------                        -------------------- --------------                        -------------------- ----------                        -------------------- --------------   -------------------- -------------------- ----------                        -------------------- ----------                        -------------------- ----------
  Pretax income (FTE)                                                                                84,590                                                     88,076                                                    121,047                                                140,412                                                    140,222                                                147,410                                                153,307                                                152,038
  FTE adjustment                                                                                     (1,911 )                                                   (2,067 )                                                   (2,533 )                                               (3,254 )                                                   (3,594 )                                               (3,396 )                                               (3,014 )                                               (2,450 )
  Provision for income taxes                                                                        (30,984 )                                                  (31,514 )                                                  (42,470 )                                              (49,312 )                                                  (47,417 )                                              (53,488 )                                              (54,246 )                                               (3,434 )
  Noncontrolling interest                                                             (7 )                                   (21 )                                   (14 )                               (59 )                                   (23 )              6                                 (40 )                                10
                                                                        -------------------- --------------                        -------------------- --------------                        -------------------- --------------                        -------------------- ----------                        -------------------- --------------   -------------------- -------------------- ----------                        -------------------- ----------                        -------------------- ----------
     Net income available to                                                               $         51,688                                           $         54,474                                           $         76,030                                           $     87,787                                           $         89,188                        $     90,532                                           $     96,007                                           $    146,164
     common stockholders
                                                                        ==================== ==============                        ==================== ==============                        ==================== ==============                        ==================== ==========                        ==================== ==============   ==================== ==================== ==========                        ==================== ==========                        ==================== ==========
  Earnings per common share - diluted                                         $           0.57                                           $           0.60                                           $           0.66                                           $       0.72                                           $           0.73                                           $       0.73                                           $       0.75                                           $       1.14
Non-interest Income:
--------------------------------------------------
  Service charges on deposit accounts                                                      $          7,657                                           $          8,119                                           $         10,926                                           $     11,759                                           $         11,301                                           $     11,764                                           $      9,729                                           $     10,058
  Mortgage lending income                                                                             1,284                                                      2,057                                                      2,616                                                  2,097                                                      1,574                                                  1,910                                                  1,620                                                  1,294
  Trust income                                                                                        1,507                                                      1,574                                                      1,564                                                  1,623                                                      1,631                                                  1,577                                                  1,755                                                  1,729
  BOLI income                                                                                         2,861                                                      2,745                                                      4,638                                                  4,564                                                      4,464                                                  4,594                                                  4,453                                                  5,166
  Other income from purchased loans                                                                   3,052                                                      4,599                                                      4,635                                                  4,993                                                      3,737                                                  4,777                                                  2,933                                                  2,009
  Loan service, maintenance and other                                                                   949                                                      1,238                                                      1,687                                                  2,962                                                      2,706                                                  3,427                                                  5,274                                                  4,289
  fees
  Net gains on investment securities                                                         --                                             --                                             --                                                      4                                             --                                                    404                                                  2,429                                                  1,201
  Gains on sales of other assets                                                                      1,027                                                        998                                                        594                                                  1,537                                                      1,619                                                    672                                                  1,363                                                  1,899
  Other                                                                            1,528                                   1,403                                   2,571                               1,032                                   2,026            2,715                               3,191                               2,568
                                                                        -------------------- --------------                        -------------------- --------------                        -------------------- --------------                        -------------------- ----------                        -------------------- --------------   -------------------- -------------------- ----------                        -------------------- ----------                        -------------------- ----------
     Total non-interest income                                                             $         19,865                                           $         22,733                                           $         29,231                                           $     30,571                                           $         29,058                        $     31,840                                           $     32,747                                           $     30,213
                                                                        -------------------- --------------                        -------------------- --------------                        -------------------- --------------                        -------------------- ----------                        -------------------- --------------   -------------------- -------------------- ----------                        -------------------- ----------                        -------------------- ----------
Non-interest Expense:
--------------------------------------------------
  Salaries and employee benefits                                                           $         23,362                                           $         24,921                                           $         38,069                                           $     36,481                                           $         38,554                                           $     39,892                                           $     35,331                                           $     38,417
  Net occupancy expense                                                                               8,531                                                      8,388                                                     11,669                                                 13,936                                                     13,192                                                 12,937                                                 13,595                                                 13,474
  Other operating expenses                                                                           14,067                                                     16,062                                                     26,447                                                 24,783                                                     23,377                                                 27,854                                                 32,328                                                 31,141
  Amortization of intangibles                                                      1,726                                   1,557                                   2,596                               3,158                                   3,145            3,145                               3,145                               3,145
                                                                        -------------------- --------------                        -------------------- --------------                        -------------------- --------------                        -------------------- ----------                        -------------------- --------------   -------------------- -------------------- ----------                        -------------------- ----------                        -------------------- ----------
     Total non-interest expense                                                            $         47,686                                           $         50,928                                           $         78,781                                           $     78,358                                           $         78,268                        $     83,828                                           $     84,399                                           $     86,177
                                                                        -------------------- --------------                        -------------------- --------------                        -------------------- --------------                        -------------------- ----------                        -------------------- --------------   -------------------- -------------------- ----------                        -------------------- ----------                        -------------------- ----------
Balance Sheet Data:
--------------------------------------------------
  Total assets                                                                             $     11,427,419                                           $     12,279,579                                           $     18,451,783                                           $ 18,890,142                                           $     19,152,212                                           $ 20,064,589                                           $ 20,768,493                                           $ 21,275,647
  Non-purchased loans                                                                             7,591,339                                                  8,214,900                                                  8,759,766                                              9,605,093                                                 10,216,875                                             11,025,203                                             12,047,094                                             12,733,937
  Purchased loans                                                                                 1,678,351                                                  1,515,104                                                  5,399,831                                              4,958,022                                                  4,580,047                                              4,159,139                                              3,731,536                                              3,309,092
  Deposits                                                                                        9,626,825                                                 10,195,072                                                 15,123,804                                             15,574,878                                                 15,713,427                                             16,241,440                                             16,823,359                                             17,192,345
  Common stockholders’ equity                                                                     1,508,080                                                  1,556,921                                                  2,756,346                                              2,791,607                                                  2,873,317                                              3,260,123                                              3,334,740                                              3,460,728
Allowance for Loan Losses:
--------------------------------------------------
  Balance at beginning of period                                                           $         60,854                                           $         61,760                                           $         65,133                                           $     69,760                                           $         76,541                                           $     78,224                                           $     82,320                                           $     86,784
  Net charge-offs                                                                                    (1,111 )                                                   (1,461 )                                                   (2,459 )                                               (3,074 )                                                   (3,250 )                                               (2,007 )                                               (3,313 )                                               (1,943 )
  Provision for loan losses                                                        2,017                                   4,834                                   7,086                               9,855                                   4,933            6,103                               7,777                               9,279
                                                                        -------------------- --------------                        -------------------- --------------                        -------------------- --------------                        -------------------- ----------                        -------------------- --------------   -------------------- -------------------- ----------                        -------------------- ----------                        -------------------- ----------
     Balance at end of period                                                              $         61,760                                           $         65,133                                           $         69,760                                           $     76,541                                           $         78,224                        $     82,320                                           $     86,784                                           $     94,120
                                                                        -------------------- --------------                        -------------------- --------------                        -------------------- --------------                        -------------------- ----------                        -------------------- --------------   -------------------- -------------------- ----------                        -------------------- ----------                        -------------------- ----------
Selected Ratios:
--------------------------------------------------
  Net interest margin - FTE(1)                                                            4.92 %                                                     4.82 %                                                     4.90 %                                                 5.02 %                                                     4.88 %                                                 4.99 %                                                 4.84 %                                                 4.72 %
  Efficiency ratio                                                                                    35.51                                                      35.41                                                      38.07                                                  34.27                                                      35.03                                                  35.32                                                  34.38                                                  34.82
  Net charge-offs to average                                                                           0.06                                                       0.05                                                       0.06                                                   0.08                                                       0.05                                                   0.03                                                   0.08                                                   0.08
  non-purchased loans(1) (2)
  Net charge-offs to average                                                                           0.05                                                       0.06                                                       0.07                                                   0.09                                                       0.09                                                   0.05                                                   0.09                                                   0.05
  total loans(1)
  Nonperforming loans                                                                                  0.15                                                       0.09                                                       0.08                                                   0.15                                                       0.11                                                   0.11                                                   0.11                                                   0.10
  to total loans(3)
  Nonperforming assets to total assets(3)                                                              0.29                                                       0.25                                                       0.28                                                   0.31                                                       0.25                                                   0.23                                                   0.20                                                   0.18
  Allowance for loan losses to                                                                         0.80                                                       0.78                                                       0.78                                                   0.78                                                       0.75                                                   0.73                                                   0.71                                                   0.73
  total non-purchased loans(3)
  Loans past due 30 days or                                                                            0.23                                                       0.22                                                       0.17                                                   0.16                                                       0.16                                                   0.15                                                   0.12                                                   0.15
  more, including past due non-accrual
  loans, to total loans(3)
(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
                                                                                                                                                                                                                                                                                                 
                                                                                                                                                                                                                                                                            Quarters Ended December 31,                                                                                                                                                                                                                                                                                                                                                                                                                       Years Ended December 31,
                                                                            ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------                       ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                      2017                                                                                                                                                                                        2016                                                                                                                                                                                                           2017                                                                                                                                                                                        2016
                                                                            ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------                      ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------                       ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------                      ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                         Average                                  Income/                               Yield/                                              Average                                  Income/                               Yield/                                              Average                                  Income/                               Yield/                                              Average                                  Income/                               Yield/
                                                                                         Balance                                                                        Expense                                                                      Rate                                                                  Balance                                                                        Expense                                                                      Rate                                               Balance                                                                        Expense                                                                      Rate                                                                  Balance                                                                        Expense                                                                      Rate
                                                                            ------------------------------  --------------------                      ----------------------------------------  --------------------                      ------------------------  --------------------                      ------------------------------                                            ----------------------------------------                                            ------------------------                         ------------------------------  --------------------                      ----------------------------------------  --------------------                      ------------------------  --------------------                      ------------------------------                                            ----------------------------------------                                            ------------------------
                                                                                                                                                                                                                                                                                                                 (Dollars in thousands)
  ASSETS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
Earning assets:
 Interest earning deposits and                                                                 $     56,500                                                              $                  268                                                                1.88 %                                                            $     52,300                                                              $                  214                                                                1.63 %                                         $     81,504                                                              $                  656                                                                0.81 %                                                            $     30,260                                                              $                  366                                                                1.21 %
 federal funds sold
 Investment securities:
    Taxable                                                                                       1,818,633                                                                               9,661                                                                2.11                                                                   686,632                                                                               3,559                                                                2.06                                              1,158,519                                                                              25,460                                                                2.20                                                                   466,059                                                                              11,373                                                                2.44
    Tax-exempt - FTE                                                                   577,614                                                                               6,680                                                                4.59                                                                   737,712                                                                               9,037                                                                4.87                                                714,329                                                                              34,508                                                                4.83                                                                   514,545                                                                              27,049                                                                5.26
 Non-purchased loans- FTE                                                           12,293,725                                                                             178,638                                                                5.76                                                                 9,017,000                                                                             116,565                                                                5.14                                             10,979,369                                                                             607,925                                                                5.54                                                                 8,083,647                                                                             411,181                                                                5.09
 Purchased loans                                                               3,528,823                                        56,303                                             6.33                                              5,197,439                                                           89,408                                                                6.84                           4,175,146                                       276,499                                             6.62                                              3,325,443                                                          222,350                                                                6.69
                                                                            -------------------- ---------- --------------------                      -------------------- -------------------- --------------------                                                                                          -------------------- ----------                                           -------------------- --------------------                                                                                            -------------------- ---------- --------------------                      -------------------- -------------------- --------------------                                                                                          -------------------- ----------                                           -------------------- --------------------
     Total earning assets -                                                         18,275,295                                                                             251,550                                                                5.46                                                                15,691,083                                                                             218,783                                                                5.55                                             17,108,867                                                                             945,048                                                                5.52                                                                12,419,954                                                                             672,319                                                                5.41
     FTE
Non-interest earning assets                                                    2,345,373                                                                                                                                                                                   2,492,341                                                                                                                                                                                   2,545,797                                                                                                                                                                                   1,850,124
                                                                            -------------------- ---------- --------------------                                                                                                                                                                              -------------------- ----------                                                                                                                                                                                -------------------- ---------- --------------------                                                                                                                                                                              -------------------- ----------
     Total assets                                                                              $ 20,620,668                                                                                                                                                                                                   $ 18,183,424                                                                                                                                                                                                   $ 19,654,664                                                                                                                                                                                                   $ 14,270,078
                                                                            ==================== ========== ====================                                                                                                                                                                              ==================== ==========                                                                                                                                                                                ==================== ========== ====================                                                                                                                                                                              ==================== ==========
  LIABILITIES AND
  STOCKHOLDERS’
  EQUITY
Interest bearing liabilities:
 Deposits:
    Savings and interest                                                                       $  9,409,297                                                              $               18,052                                                                0.76 %                                                            $  7,344,679                                                              $                6,450                                                                0.35 %                                         $  8,587,404                                                              $               53,496                                                                0.62 %                                                            $  5,897,821                                                              $               20,316                                                                0.34 %
    bearing transaction
    Time deposits of $100,000                                                                     3,043,311                                                                               8,218                                                                1.07                                                                 3,209,817                                                                               6,808                                                                0.84                                              3,164,843                                                                              31,222                                                                0.99                                                                 2,439,447                                                                              19,906                                                                0.82
    or more
    Other time deposits                                                        1,452,325                                         2,880                                             0.79                                              1,768,097                                                            2,738                                                                0.62                           1,560,035                                        11,365                                             0.73                                              1,448,166                                                            8,372                                                                0.58
                                                                            -------------------- ---------- --------------------                      -------------------- -------------------- --------------------                                                                                          -------------------- ----------                                           -------------------- --------------------                                                                                            -------------------- ---------- --------------------                      -------------------- -------------------- --------------------                                                                                          -------------------- ----------                                           -------------------- --------------------
     Total interest bearing                                                                      13,904,933                                                                              29,150                                                                0.83                                                                12,322,593                                                                              15,996                                                                0.52                                             13,312,282                                                                              96,083                                                                0.72                                                                 9,785,434                                                                              48,594                                                                0.50
     deposits
 Repurchase agreements with                                                                          74,233                                                                                  38                                                                0.21                                                                    69,664                                                                                  26                                                                0.15                                                 75,915                                                                                 132                                                                0.17                                                                    64,044                                                                                  89                                                                0.14
 customers
 Other borrowings                                                                                   124,340                                                                                 574                                                                1.83                                                                    41,947                                                                                 287                                                                2.72                                                 62,988                                                                               1,305                                                                2.07                                                                    46,949                                                                               1,168                                                                2.49
 Subordinated notes                                                                                 222,846                                                                               3,190                                                                5.68                                                                   222,467                                                                               3,259                                                                5.83                                                222,705                                                                              12,620                                                                5.67                                                                   116,679                                                                               6,801                                                                5.83
 Subordinated debentures                                                         118,723                                         1,317                                             4.40                                                118,165                                                            1,161                                                                3.91                             118,515                                         5,024                                             4.24                                                117,958                                                            4,398                                                                3.73
                                                                            -------------------- ---------- --------------------                      -------------------- -------------------- --------------------                                                                                          -------------------- ----------                                           -------------------- --------------------                                                                                            -------------------- ---------- --------------------                      -------------------- -------------------- --------------------                                                                                          -------------------- ----------                                           -------------------- --------------------
     Total interest bearing                                                                      14,445,075                                                                              34,269                                                                0.94                                                                12,774,836                                                                              20,729                                                                0.65                                             13,792,405                                                                             115,164                                                                0.83                                                                10,131,064                                                                              61,050                                                                0.60
     liabilities
Non-interest bearing liabilities:
 Non-interest bearing deposits                                                                    2,729,090                                                                                                                                                                                                                         2,565,123                                                                                                                                                                                                      2,652,895                                                                                                                                                                                                                         2,006,933
 Other non-interest bearing                                                       77,588                                                                                                                                                                                      73,806                                                                                                                                                                                      78,684                                                                                                                                                                                      60,553
 liabilities
                                                                            -------------------- ---------- --------------------                                                                                                                                                                              -------------------- ----------                                                                                                                                                                                -------------------- ---------- --------------------                                                                                                                                                                              -------------------- ----------
     Total liabilities                                                                           17,251,753                                                                                                                                                                                                                        15,413,765                                                                                                                                                                                                     16,523,984                                                                                                                                                                                                                        12,198,550
Common stockholders’ equity                                            3,365,848                                                                                                                                                                                                                         2,766,415                                                                                                                                                                                                      3,127,576                                                                                                                                                                                                                         2,068,328
Noncontrolling interest                                         3,067                                                                                                                                                                                       3,244                                                                                                                                                                                       3,104                                                                                                                                                                                       3,200
                                                       -------------------- -------------------- ---------- --------------------                                                                                                                                                                              -------------------- ----------                                                                                                                                                                                -------------------- ---------- --------------------                                                                                                                                                                              -------------------- ----------
     Total liabilities and                                                  $ 20,620,668                                                                                                                                          $ 18,183,424                                                                                                                                                             $ 19,654,664                                                                                                                                          $ 14,270,078                                              
     stockholders’ equity
                                                       ==================== ==================== ========== ====================                      -------------------- -------------------- --------------------                                                                                          ==================== ==========                                           -------------------- --------------------                                                                                            ==================== ========== ====================                      -------------------- -------------------- --------------------                                                                                          ==================== ==========                                           -------------------- --------------------
Net interest income - FTE                                                                                                                                   $              217,281                                                                                                                                                                                         $              198,054                                                                                                                                                                                         $              829,884                                                                                                                                                                                         $              611,269
                                                                                                                                                      ==================== ==================== ====================                                                                                                                                                                    ==================== ====================                                                                                                                                                                      ==================== ==================== ====================                                                                                                                                                                    ==================== ====================
Net interest margin - FTE                                                                                                                                                                                                      4.72 %                                                                                                                                                                                                         5.02 %                                                                                                                                                                                      4.85 %                                                                                                                                                                                                         4.92 %
                                                                                                                                                                                                                                          ==================== ==== ====================                                                                                                                                                                                    ==================== ====                                                                                                                                                                                      ==================== ==== ====================                                                                                                                                                                                    ==================== ====
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
                                                                                                                                      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
                                                                                                                                                                                     
                                                                                                                                               Quarters Ended                                                                                                      Years Ended
                                                                                                                                                December 31,                                                                                                      December 31,
                                                                                                          ----------------------------------------------------------------------------------------                          ----------------------------------------------------------------------------------------
                                                                                                                       2017                                  2016                                                     2017                                  2016
                                                                                                          -------------------------------                          -------------------------------                          -------------------------------                          -------------------------------
                                                                                                                                                                                                    (Dollars in thousands)
Net income available to common stockholders                                                                                  $   146,164                                              $    87,787                                              $   421,891                                              $   269,979
                                                                                                          ==================== =========                           ==================== =========                           ==================== =========                           ==================== =========
Average common stockholders’ equity before
 noncontrolling interest                                                                                                     $ 3,365,848                                              $ 2,766,415                                              $ 3,127,576                                              $ 2,068,328
Less average intangible assets:
  Goodwill                                                                                                                      (660,789 )                                               (658,224 )                                               (660,632 )                                               (363,324 )
  Core deposit and other intangibles, net of
   accumulated amortization                                                                                   (49,927 )                             (62,937 )                             (54,702 )                             (43,623 )
                                                                                                          -------------------- ---------                           -------------------- ---------                           -------------------- ---------                           -------------------- ---------
     Total average intangibles                                                                               (710,716 )                            (721,161 )                            (715,334 )                            (406,947 )
                                                                                                          -------------------- ---------                           -------------------- ---------                           -------------------- ---------                           -------------------- ---------
Average tangible common stockholders’ equity                                                      $ 2,655,132                                              $ 2,045,254                                              $ 2,412,242                                              $ 1,661,381
                                                                                                          ==================== =========                           ==================== =========                           ==================== =========                           ==================== =========
Return on average common stockholders’ equity(1)                                     17.23 %                               12.62 %                               13.49 %                               13.05 %
                                                                                                          ==================== =========                           ==================== =========                           ==================== =========                           ==================== =========
Return on average tangible common stockholders’ equity(1)                            21.84 %                               17.08 %                               17.49 %                               16.25 %
                                                                                                          ==================== =========                           ==================== =========                           ==================== =========                           ==================== =========
(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
                                                                                             
                                                                                                                                                     December 31,
                                                                                                                 -------------------------------------------------------------------------------------
                                                                                                                              2017                               2016
                                                                                                                 -------------------------------                       -------------------------------
                                                                                                                                       (In thousands, except per share amounts)
Total common stockholders’ equity before noncontrolling interest                                         $ 3,460,728                                           $ 2,791,607
Less intangible assets:
  Goodwill                                                                                                                             (660,789 )                                            (660,119 )
  Core deposit and other intangibles, net of
   accumulated amortization                                                                                          (48,251 )                          (60,831 )
                                                                                                                 -------------------- ---------                        -------------------- ---------
     Total intangibles                                                                                              (709,040 )                         (720,950 )
                                                                                                                 -------------------- ---------                        -------------------- ---------
  Total tangible common stockholders’ equity                                                             $ 2,751,688                                           $ 2,070,657
                                                                                                                 ==================== =========                        ==================== =========
Shares of common stock outstanding                                                                                   128,288                            121,268
                                                                                                                 ==================== =========                        ==================== =========
Book value per common share                                                                                                         $     26.98                                           $     23.02
                                                                                                                 ==================== =========                        ==================== =========
Tangible book value per common share                                                                                                $     21.45                                           $     17.08
                                                                                                                 ==================== =========                        ==================== =========
                                                                                                                                                                                                       
                                                                                            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
                                                                                             
                                                                                                                                                      December 31,
                                                                                                                 ---------------------------------------------------------------------------------------
                                                                                                                               2017                                2016
                                                                                                                 --------------------------------                       --------------------------------
                                                                                                                                                 (Dollars in thousands)
Total common stockholders’ equity before noncontrolling interest                                         $  3,460,728                                           $  2,791,607
Less intangible assets:
  Goodwill                                                                                                                              (660,789 )                                             (660,119 )
  Core deposit and other intangibles, net of
   accumulated amortization                                                                                           (48,251 )                           (60,831 )
                                                                                                                 -------------------- ----------                        -------------------- ----------
     Total intangibles                                                                                               (709,040 )                          (720,950 )
                                                                                                                 -------------------- ----------                        -------------------- ----------
  Total tangible common stockholders’ equity                                                             $  2,751,688                                           $  2,070,657
                                                                                                                 ==================== ==========                        ==================== ==========
Total assets                                                                                                                        $ 21,275,647                                           $ 18,890,142
Less intangible assets:
  Goodwill                                                                                                                              (660,789 )                                             (660,119 )
  Core deposit and other intangibles, net of                                                                          (48,251 )                           (60,831 )
  accumulated amortization
                                                                                                                 -------------------- ----------                        -------------------- ----------
     Total intangibles                                                                                               (709,040 )                          (720,950 )
                                                                                                                 -------------------- ----------                        -------------------- ----------
     Total tangible assets                                                                                                          $ 20,566,607                                           $ 18,169,192
                                                                                                                 ==================== ==========                        ==================== ==========
Ratio of total common stockholders’ equity to total assets                                   16.27 %                             14.78 %
                                                                                                                 ==================== ==========                        ==================== ==========
Ratio of total tangible common stockholders’ equity to total
 tangible assets                                                                                                        13.38 %                             11.40 %
                                                                                                                 ==================== ==========                        ==================== ==========

http://cts.businesswire.com/ct/CT?id=bwnews&sty=20180116005745r1&sid=cmtx6&distro=nx&lang=en

View source version on businesswire.com: http://www.businesswire.com/news/home/20180116005745/en/

SOURCE: Bank of the Ozarks

Bank of the Ozarks 
Media 
Susan Blair, 501-978-2217 
or 
Investors 
Tim Hicks, 501-978-2336


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