Bank of the Ozarks, Inc. Announces Record Third Quarter 2007 Net Income.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 September 30, 2007 was a record $8,402,000, a 4.9% increase over net income of $8,010,000 for the third quarter of 2006. 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 $0.50 for the third quarter of 2007 compared to $0.48 for the third quarter of 2006, an increase of 4.2%. For the nine months ended September 30, 2007, net income totaled $24,009,000, a 1.4% decrease from net income of $24,338,000 for the first nine months of 2006. Diluted earnings per share for the first nine months of 2007 were $1.43, compared to $1.45 for the first nine months of 2006, a decrease of 1.4%. 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 third quarter of 2007 were 1.28% and 18.15%, respectively, compared to 1.29% and 20.18% for the third quarter of 2006. Annualized returns on average assets and average stockholders' equity for the nine months ended September 30, 2007 were 1.25% and 17.70%, respectively, compared with 1.40% and 21.19% for the nine months ended September 30, 2006. Loans and leases were $1.82 billion at September 30, 2007 compared to $1.59 billion at September 30, 2006, an increase of 13.9%. Deposits were $2.02 billion at September 30, 2007 compared to $2.01 billion at September 30, 2006, an increase of 0.8%. Total assets were $2.65 billion at September 30, 2007, a 5.4% increase from $2.52 billion at September 30, 2006. Stockholders' equity was $189 million at September 30, 2007 compared to $167 million at September 30, 2006, an increase of 13.3%. Book value per share was $11.23 at September 30, 2007 compared to $9.96 at September 30, 2006, an increase of 12.8%. 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 increased to 7.12% as of September 30, 2007 compared to 6.62% as of September 30, 2006, and 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. increased to 6.91% as of September 30, 2007 compared to 6.39% as of September 30, 2006. In commenting on these results, George Gleason, Chairman and Chief Executive Officer, stated, "During the quarter just ended, we achieved our third consecutive quarter of record net interest income, our second best quarter of income from deposit account service charges and record trust income. These revenue results, combined with good control of non-interest expense and favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. asset quality results, helped us achieve record net income in the third quarter. Our key goals for 2007 include, among others, accelerating our rate of revenue growth, decelerating our rate of overhead growth and maintaining good asset quality. Our third quarter results reflect excellent progress in achieving each of these goals." NET INTEREST INCOME Net interest income for the third quarter of 2007 increased 10.7% to a record $19,671,000 compared to $17,774,000 for the third quarter of 2006. 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, was 3.45% in the third quarter of 2007, an increase of 11 basis points from 3.34% in the third quarter of 2006. Compared to the second quarter of 2007, third quarter 2007 net interest margin (FTE) declined one basis point. Net interest income for the nine months ended September 30, 2007 increased 7.5% to $57,212,000 compared to $53,197,000 for the nine months ended September 30, 2006. The Company's net interest margin (FTE) for the first nine months of 2007 was 3.42%, a decrease of 17 basis points from 3.59% in the first nine months of 2006. Mr. Gleason stated, "The relatively flat yield curve Flat Yield Curve A chart that shows that the yields of bonds with short maturities are equal to the yields of bonds with longer maturities. between short-term and long-term interest rates and intense competition continued to provide a challenging interest margin environment during the quarter just ended. Despite these conditions, our growth in loans and leases more than offset the one basis point quarter-to-quarter reduction in our net interest margin allowing us to achieve our third consecutive quarter of record net interest income. Our goals for 2007 include improving net interest income each quarter by maintaining, or hopefully improving, our net interest margin and achieving good growth in 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 , primarily loans and leases." NON-INTEREST INCOME Non-interest income for the third quarter of 2007 was $5,419,000 compared to $5,680,000 for the third quarter of 2006, a 4.6% decrease. Non-interest income for the nine months ended September 30, 2007 was $17,001,000 compared to $16,798,000 for the nine months ended September 30, 2006, a 1.2% increase. Service charges on deposit accounts, the Company's largest source of non-interest income, were $3,075,000 in the third quarter of 2007, an increase of 21.1% compared to $2,540,000 in the third quarter of 2006, but down slightly from $3,107,000 in the second quarter of 2007. Service charges on deposit accounts increased 21.0% to $9,017,000 for the first nine months of 2007 compared with $7,449,000 for the first nine months of 2006. Mortgage lending income was $594,000 in the third quarter of 2007 compared to $792,000 in the third quarter of 2006, a decrease of 25.0%, and a decrease of 27.3% compared to $817,000 in the second quarter of 2007. Mortgage lending income was $2,142,000 in the first nine months of 2007, a 1.5% decrease from $2,174,000 in the first nine months of 2006. Trust income increased 16.3% to a record $565,000 in the third quarter of 2007 compared to $486,000 in the third quarter of 2006. Trust income was $1,561,000 in the first nine months of 2007, an 11.7% increase from $1,397,000 in the first nine months of 2006. 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. resulted in net gains of $115,000 in the third quarter of 2007 compared to net gains of $760,000 in the third quarter of 2006. Net gains from sales of investment securities and other assets were $440,000 for the first nine months of 2007 compared to $2,631,000 for the first nine months of 2006. NON-INTEREST EXPENSE Non-interest expense for the third quarter of 2007 was $11,732,000 compared to $11,707,000 for the third quarter of 2006, an increase of 0.2%, but down slightly from $11,876,000 in the second quarter of 2007. The Company's efficiency ratio for the quarter ended September 30, 2007 improved to 45.1% compared to 47.5% for the third quarter of 2006. Non-interest expense for the first nine months of 2007 was $35,746,000 compared with $33,884,000 for the first nine months of 2006, an increase of 5.5%. The Company's efficiency ratio for the first nine months of 2007 was 46.6% compared to 46.0% for the first nine months of 2006. ASSET QUALITY, CHARGE-OFFS AND ALLOWANCE Nonperforming loans and leases as a percent of total loans and leases were 0.19% as of September 30, 2007 compared to 0.21% as of September 30, 2006 and 0.23% as of June 30, 2007. 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 were 0.22% as of September 30, 2007 compared to 0.15% as of September 30, 2006 and 0.26% as of June 30, 2007. 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 0.45% as of September 30, 2007 compared to 0.60% as of September 30, 2006 and 0.53% as of June 30, 2007. The Company's annualized net charge-off ratio for the third quarter of 2007 was 0.17% compared to 0.14% in both the third quarter of 2006 and the second quarter of 2007. The Company's annualized net charge-off ratio was 0.16% for the first nine months of 2007 compared to 0.11% for the first nine months of 2006. The Company's allowance for loan and lease losses was $19.1 million at September 30, 2007, or 1.05% of total loans and leases, compared to $17.3 million, or 1.09% of total loans and leases, at September 30, 2006. As of September 30, 2007, the Company's allowance for loan and lease losses equaled 564% of its total nonperforming loans and leases. GROWTH AND EXPANSION The Company is continuing its growth and de novo [Latin, Anew.] A second time; afresh. A trial or a hearing that is ordered by an appellate court that has reviewed the record of a hearing in a lower court and sent the matter back to the original court for a new trial, as if it had not been previously heard nor decided. branching strategy, although at a slower pace than in 2006. In addition to the Hot Springs, Arkansas Hot Springs is the tenth most populous city in the state of Arkansas in the United States of America, the county seat of Garland County, Arkansas, and the principal city of the Hot Springs Metropolitan Statistical Area encompassing all of Garland County. office added in the second quarter of 2007, during the quarter just ended the Company opened a new banking office in Fayetteville, Arkansas
It is a northern suburb of Dallas. As of the 2000 census, the city population was 33,714, while according to 2007 estimate, the city's population is approximately 95,000. with a new permanent facility. The Company expects to open one additional banking office in Rogers, Arkansas
Opening new offices is subject to availability of suitable sites, designing, constructing, equipping e·quip tr.v. e·quipped, e·quip·ping, e·quips 1. a. To supply with necessities such as tools or provisions. b. and staffing such offices, obtaining regulatory and other approvals, and many other conditions and contingencies that the Company cannot accurately predict with certainty. 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 October 12, 2007. 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 of the entire call will be available on the Company's website or by telephone by calling 1-800-642-1687 in the United States and Canada or 706-645-9291 internationally. The passcode for this telephone playback is 17669341. The telephone playback will be available through October 31, 2007, and the website recording of the call will be available for 12 months. FORWARD LOOKING STATEMENTS This release contains forward looking statements regarding the Company's plans, expectations, goals and outlook for the future, including the Company's goals to accelerate its rate of revenue growth, decelerate de·cel·er·ate v. de·cel·er·at·ed, de·cel·er·at·ing, de·cel·er·ates v.tr. 1. To decrease the velocity of. 2. its rate of overhead growth, and maintain good asset quality, and the Company's goals and expectations for improving net interest income, maintaining or improving net interest margin, growth in earning assets, growth in loans and leases, continuation of its growth and de novo branching strategy and plans to add new banking offices. 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 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, collateral values and the value 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 2006 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 64 offices in 34 communities throughout northern, western and central Arkansas, five 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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