Bank of the Ozarks, Inc. Announces Record Second Quarter 2008 Earnings.LITTLE ROCK, Ark. -- Bank of the Ozarks, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : OZRK) today announced that net income for the quarter ended June June: see month. 30, 2008 was a record $8,607,000, an increase of 6.4% compared to net income of $8,086,000 in the second quarter of 2007. Diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of were a record $0.51 for the second quarter of 2008 compared to $0.48 for the second quarter of 2007, an increase of 6.3%. For the six months ended June 30, 2008, net income totaled $16,372,000, a 4.9% increase from net income of $15,607,000 for the first six months of 2007. Diluted earnings per share for the first six months of 2008 were $0.97, compared to $0.93 for the first six months of 2007, an increase of 4.3%. The Company's annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. returns on average assets and average stockholders' equity Stockholders' Equity The portion of the balance sheet that includes capital received from investors in exchange for stock (paid-in capital), donated capital, and retained earnings. This is equal to total assets minus liabilities, preferred stock and intangible assets. for the second quarter of 2008 were 1.13% and 16.65%, respectively, compared to 1.27% and 17.82%, respectively, for the second quarter of 2007. Annualized returns on average assets and average stockholders' equity for the six months ended June 30, 2008 were 1.12% and 15.99%, respectively, compared with 1.23% and 17.47%, respectively, for the six months ended June 30, 2007. Loans and leases were $2.01 billion at June 30, 2008 compared to $1.76 billion at June 30, 2007, an increase of 14.5%. Deposits were $2.31 billion at June 30, 2008 compared to $2.16 billion at June 30, 2007, an increase of 7.0%. Total assets were $3.06 billion at June 30, 2008, an 18.7% increase from $2.58 billion at June 30, 2007. Stockholders' equity was $211 million at June 30, 2008, an increase of 18.4% from $178 million at June 30, 2007, but a slight decrease from $213 million at March 31, 2008. Book value per share was $12.53 at June 30, 2008, an increase of 18.0% from $10.62 at June 30, 2007, but a slight decrease from $12.66 at March 31, 2008. Changes in stockholders' equity and book value per share reflect earnings, dividends paid, stock option transactions and changes in unrealized gains Unrealized Gain A profit that results from holding on to an asset rather than cashing it in and using the funds. Notes: Let's say you own a stock that has doubled, but you haven't sold it yet. This is said to be an unrealized gain. and losses on investment securities available for sale. The Company's ratio of common equity to assets was 6.89% as of June 30, 2008 compared to 6.90% as of June 30, 2007. Its ratio of tangible common equity to tangible assets Tangible Asset An asset that has a physical form such as machinery, buildings and land. Notes: This is the opposite of an intangible asset such as a patent or trademark. Whether an asset is tangible or intangible isn't inherently good or bad. was 6.71% as of June 30, 2008 compared to 6.68% as of June 30, 2007. In commenting on these results, George Gleason, Chairman and Chief Executive Officer, stated, "We are very pleased to report records in both net income and earnings per share for the quarter just completed. This was accomplished by achieving strong revenue growth while maintaining favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. asset quality results." NET INTEREST INCOME Net interest income for the second quarter of 2008 increased 22.4% to $23,603,000 compared to $19,291,000 for the second quarter of 2007. Net interest margin, on a fully taxable equivalent ("FTE FTE Full-Time Equivalent FTE Full-Time Employee FTE Full-Time Equivalency FTE Full Time Employment FTE Foundation for Teaching Economics FTE Full Time Enrollment FTE For the Enterprise (SQL) FTE Fund for Theological Education ") basis, improved to 3.77% in the second quarter of 2008, an increase of 31 basis points from 3.46% in the second quarter of 2007 and an increase of eight basis points from 3.69% in the first quarter of 2008. Net interest income for the six months ended June 30, 2008 increased 20.8% to $45,353,000 compared to $37,540,000 for the six months ended June 30, 2007. The Company's net interest margin (FTE) for the first half of 2008 was 3.73%, an increase of 32 basis points from 3.41% in the first half of 2007. Mr. Gleason stated, "Good growth in average earning assets Earning Assets Any income-earning asset owned by a company. Notes: These assets are generally interest-bearing accounts, bonds, and securities available for sale. See also: Asset, Asset Valuation, Earnings, Net Interest Margin , combined with continued improvement in our net interest margin, allowed us to achieve our sixth consecutive quarter of record net interest income in the quarter just ended. Early in the year, we stated that one of our goals for 2008 was to achieve record net interest income in each quarter, and this will continue to be an important goal." NON-INTEREST INCOME Non-interest income for the second quarter of 2008 decreased 1.2% to $5,557,000 compared to $5,623,000 for the comparable quarter of 2007. Non-interest income for the six months ended June 30, 2008 was $10,682,000 compared to $11,582,000 for the six months ended June 30, 2007, a 7.8% decrease. Service charges on deposit accounts, the Company's largest source of non-interest income, were $2,967,000 in the second quarter of 2008, a decrease of 4.5% compared to $3,107,000 in the second quarter of 2007. Service charges on deposit accounts decreased 1.8% to $5,837,000 for the first half of 2008 compared with $5,942,000 for the first half of 2007. Mortgage lending income was $636,000 in the second quarter of 2008, a decrease of 22.2% compared to $817,000 in the second quarter of 2008. Mortgage lending income was $1,309,000 in the first half of 2008, a 15.4% decrease from $1,548,000 in the first half of 2007. Trust income was $629,000 in the second quarter of 2008, an increase of 18.5% compared to $531,000 in the second quarter of 2007. Trust income was $1,233,000 in the first half of 2008, a 23.8% increase from $996,000 in the first half of 2007. Net gains from sales of investment securities and other assets other assets Assets of relatively small value. For financial reporting purposes, firms frequently combine small assets into a single category rather than listing each item separately. were $206,000 in the second quarter of 2008 compared to a $47,000 net loss in the second quarter of 2007. Such gains were $134,000 for the first half of 2008 compared to $325,000 for the first half of 2007. NON-INTEREST EXPENSE Non-interest expense for the second quarter of 2008 was $13,442,000 compared to $11,876,000 for the second quarter of 2007, an increase of 13.2%. The Company's efficiency ratio for the quarter ended June 30, 2008 improved to 42.1% compared to 46.1% for the second quarter of 2007. Non-interest expense for the first six months of 2008 was $26,322,000 compared with $24,014,000 for the first six months of 2007, an increase of 9.6%. The Company's efficiency ratio for the first six months of 2008 improved to 43.5% compared to 47.3% for the first six months of 2007. Mr. Gleason stated, "We have a tradition of operating with excellent efficiency and a goal of continuing to improve our efficiency ratio over time. The 42.1% efficiency ratio achieved in the quarter just ended is our best quarterly efficiency ratio since becoming a public company in 1997." ASSET QUALITY, CHARGE-OFFS AND ALLOWANCE Nonperforming loans and leases as a percent of total loans and leases increased to 0.74% as of June 30, 2008 compared to 0.23% as of June 30, 2007 and 0.68% as of March 31, 2008. Nonperforming assets Nonperforming asset An asset that is not effectively producing income, such as an overdue loan. nonperforming asset An asset that produces no income. as a percent of total assets increased to 0.59% as of June 30, 2008 compared to 0.26% as of June 30, 2007 and 0.58% as of March 31, 2008. The Company's ratio of loans and leases past due 30 days or more, including past due non-accrual loans and leases, to total loans and leases was 0.92% as of June 30, 2008, an increase from 0.53% as of June 30, 2007, but a decrease from 1.30% as of March 31, 2008. The Company's annualized net charge-off Eliminate or write off. The term charge-off is used to describe the process of removing from the records of a company something that was once regarded as an asset but has subsequently become worthless. ratio for the second quarter of 2008 was 0.33%, an increase from 0.14% for the second quarter of 2007, but a decrease from 0.38% for the first quarter of 2008. The Company's annualized net charge-off ratio was 0.35% for the first six months of 2008 compared to 0.15% for the first six months of 2007 and 0.24% for the full year of 2007. The Company's allowance for loan and lease losses increased to $23.4 million at June 30, 2008, or 1.16% of total loans and leases, compared to $18.7 million, or 1.07% of total loans and leases, at June 30, 2007 and $21.1 million, or 1.06% of total loans and leases, at March 31, 2008. During the first two quarters of 2008, the Company increased its allowance for loan and lease losses due to changes in economic conditions and continued growth of its loan and lease portfolio. In the quarter just ended, the Company's provision to the allowance for loan and lease losses was $4.0 million and net charge-offs were $1.6 million, compared to a provision of $1.3 million and net charge-offs of $0.6 million in the second quarter of 2007. In the first six months of 2008, the Company's provision to the allowance for loan and lease losses was $7.3 million and net charge-offs were $3.4 million, compared to a provision of $2.4 million and net charge-offs of $1.3 million in the first six months of 2007. Mr. Gleason commented, "During the first half of 2008, our asset quality metrics metrics Managed care A popular term for standards by which the quality of a product, service, or outcome of a particular form of Pt management is evaluated. See TQM. have been impacted by slower economic and housing market conditions which adversely affected some borrowers. However, we believe our loan and lease portfolio has performed relatively well. This is a result of our strong commitment to sound underwriting Underwriting 1. The process by which investment bankers raise investment capital from investors on behalf of corporations and governments that are issuing securities (both equity and debt). 2. The process of issuing insurance policies. standards, thorough documentation, effective servicing and diligent dil·i·gent adj. Marked by persevering, painstaking effort. See Synonyms at busy. [Middle English, from Old French, from Latin d collection efforts. We believe that our strong credit culture will continue to serve us well." CONFERENCE CALL Management will conduct a conference call to review announcements made in this press release at 10:00 a.m. CDT CDT abbr. Central Daylight Time CDT Central Daylight Time CDT n abbr (US) (= Central Daylight Time) → hora de verano del centro; (BRIT (11:00 a.m. EDT EDT abbr. Eastern Daylight Time EDT Eastern Daylight Time EDT n abbr (US) (= Eastern Daylight Time) → hora de verano de Nueva York EDT ) on Friday, July 11, 2008. The call will be available live or in recorded version on the Company's website www.bankozarks.com under "Investor Relations Investor relations The process by which the corporation communicates with its investors. " or interested parties calling from locations within the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. and Canada may call 1-800-990-4845 up to ten minutes prior to the beginning of the conference and ask for the Bank of the Ozarks conference call. A recorded playback Playback could mean:
FORWARD LOOKING STATEMENTS This release contains forward looking statements regarding the Company's plans, expectations, beliefs, goals and outlook for the future, including the Company's goals and expectations for achieving record net interest income in each quarter of 2008, continuing to improve its efficiency ratio over time, and continuing to be well served by its strong credit culture. Actual results may differ materially from those projected in such forward looking statements due to, among other things, continued interest rate changes including changes in the shape of the yield curve, competitive factors, general economic and housing market conditions and their effects on the creditworthiness Creditworthiness The condition in which the risk of default on a debt obligation by that entity is deemed low. Creditworthiness Eligibility of an individual or firm to borrow money. of borrowers and collateral values, potential legislation including legislation intended to protect homeowners, changes in the value and volume of investment securities, the ability to attract new deposits and loans and leases, delays in identifying and acquiring satisfactory sites and opening new offices, delays in or inability to obtain required regulatory approvals, the ability to generate future revenue growth or to control future growth in non-interest expense, as well as other factors identified in this press release or in Management's Discussion and Analysis Management's discussion and analysis (MD&A) A report from management to shareholders that accompanies the firm's financial statements in the annual report. It explains the period's financial results and enables management to discuss topics that may not be apparent in the financial under the caption "Forward Looking Information" contained in the Company's 2007 Annual Report to Stockholders and the most recent Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. filed with the Securities and Exchange Commission. GENERAL INFORMATION Bank of the Ozarks, Inc. common stock trades on the NASDAQ Global Select Market under the symbol "OZRK". The Company owns a state-chartered subsidiary bank that conducts banking operations through 73 offices including 65 banking offices in 34 communities throughout northern, western and central Arkansas Arkansas, river, United States Arkansas (ärkăn`zəs, är`kənsô'), river, c.1,450 mi (2,330 km) long, rising in the Rocky Mts., central Colo. , six Texas banking offices, and loan production offices in Little Rock, Arkansas Little Rock, Arkansas required military intervention to desegregate schools (1957–1958). [Am. Hist.: Van Doren, 556–557] See : Bigotry , and Charlotte, North Carolina “Charlotte” redirects here. For other uses, see Charlotte (disambiguation). Charlotte is the largest city in the state of North Carolina and the 20th largest city in the United States. . The Company may be contacted at (501) 978-2265 or P. O. Box 8811, Little Rock, Arkansas 72231-8811. The Company's website is: www.bankozarks.com. [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] |
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