Bank of the Ozarks earned $20.4 million in the second quarter, up almost 7 percent from $19.1 million in the same period last year, the Little Rock bank said Thursday.
The bank earned 57 cents a share, matching the expectations of nine analysts surveyed by Thomson Reuters. In the second quarter last year, Bank of the Ozarks earned 55 cents a share.
While other banks are having a difficult time generating loans, Bank of Ozarks has done well, an analyst said.
The bank saw an increase of 23 percent in loans and leases - and purchased loans not covered by government agreements - to $2.4 billion, up from almost $2 billion in the second quarter last year.
“Our capabilities to generate loan and lease growth were evident in our second-quarter results,” said George Gleason, chairman and chief executive officer of the bank. “Those are noteworthy results given current economic and competitive conditions.”
Bank of the Ozarks shares closed at $45.29 Thursday, down 67 cents, in trading on the Nasdaq exchange. The bank’s earnings were released after the market closed.
In the second quarter, Bank of the Ozarks had set aside $2.7 million as a provision for possible loan losses, down from $3.1 million in the second quarter last year.
Bank of the Ozarks’ stock has performed well, rising about 35 percent since the beginning of the year, said Matt Olney, an analyst with Stephens Inc. in Little Rock.
The bank, which has $4 billion in assets, is one of the best banks of its size, Olney said.
“There has been renewed interest in [investing] in the banking [industry] over the last few months,” Olney said. “For the last several years, I think investor interest in the banking [industry] has been pretty low. But I think it is returning now. My point is there has been a tail wind [from investors] for all the banks, including Bank of the Ozarks.”
Bank of the Ozarks has continued to purchase failed and healthy banks. It hasacquired seven failed banks from the federal government and two healthy banks - Genala Banc, a holding company for The Citizens Bank in Dothan, Ala., and First National Bank of Shelby, N.C., which should close this summer.
That focus on acquisitions is likely to continue, Olney said.
“The banks they’ve purchased so far, they’ve done a very good job of integrating them,” Olney said.
The bank has 118 offices, including 66 in Arkansas, 28 in Georgia, 13 in Texas, four in Florida, three in Alabama, two in North Carolina and one each in South Carolina and New York.
Bank of the Ozarks had an efficiency ratio of 46.3 percent for the second quarter, up from 45.4 percent for the second quarter last year. That means it costs the bank $46.30 to earn $100.
Bank of the Ozarks will conduct a teleconference today at 10 a.m. to discuss its second quarter.
Those interested in listening to the call can dial (888) 401-4669 and ask for the Bank of the Ozarks conference call.
Business, Pages 23 on 07/12/2013