SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark one)
| x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended June 30, 2004
| ¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from to .
Commission File Number 0-22759
BANK OF THE OZARKS, INC.
(Exact name of registrant as specified in its charter)
| ARKANSAS | 71-0556208 | |
| (State or other jurisdiction of incorporation or organization) |
(I.R.S. Employer Identification Number) |
| 12615 CHENAL PARKWAY, LITTLE ROCK, ARKANSAS | 72211 | |
| (Address of principal executive offices) | (Zip Code) |
Registrant’s telephone number, including area code: (501) 978-2265
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No ¨
Indicate by check mark whether the registrant is an accelerated filer (as defined by Rule 12b-2 of the Act). Yes x No ¨
Indicate the number of shares outstanding of each of the registrant’s classes of common stock, as of the latest practical date.
| Class |
Outstanding at June 30, 2004 | |
| Common Stock, $0.01 par value per share |
16,391,390 |
FORM 10-Q
June 30, 2004
INDEX
| PART I. Financial Information |
||||
| Item 1. |
Consolidated Balance Sheets as of June 30, 2004 and 2003 and December 31, 2003 |
1 | ||
| 2 | ||||
| Consolidated Statements of Stockholders’ Equity for the Six Months Ended June 30, 2004 and 2003 |
3 | |||
| Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2004 and 2003 |
4 | |||
| 5 | ||||
| Item 2. |
Management’s Discussion and Analysis of Financial Condition and Results of Operations |
8 | ||
| 19 | ||||
| Item 3. |
21 | |||
| Item 4. |
23 | |||
| PART II. Other Information |
||||
| Item 1. |
24 | |||
| Item 2 |
Changes in Securities, Use of Proceeds and Issuer Purchases of Equity Securities |
24 | ||
| Item 3. |
24 | |||
| Item 4. |
24 | |||
| Item 5. |
25 | |||
| Item 6. |
25 | |||
| (a). Exhibits |
25 | |||
| Reference is made to the Exhibit Index contained at the end of this report |
||||
| (b). Reports on Form 8-K |
25 | |||
| 26 | ||||
| 27 | ||||
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands, except per share amounts)
Unaudited
| June 30, |
December 31, 2003 |
|||||||||||
| 2004 |
2003 |
|||||||||||
| ASSETS | ||||||||||||
| Cash and due from banks |
$ | 30,057 | $ | 28,769 | $ | 28,405 | ||||||
| Interest-earning deposits |
431 | 428 | 428 | |||||||||
| Investment securities - available for sale (“AFS”) |
371,675 | 268,408 | 364,320 | |||||||||
| Loans and leases |
1,021,199 | 825,726 | 909,147 | |||||||||
| Allowance for loan and lease losses |
(15,113 | ) | (12,579 | ) | (13,820 | ) | ||||||
| Net loans and leases |
1,006,086 | 813,147 | 895,327 | |||||||||
| Premises and equipment, net |
55,313 | 45,970 | 50,251 | |||||||||
| Foreclosed assets held for sale, net |
624 | 628 | 780 | |||||||||
| Accrued interest receivable |
7,377 | 6,550 | 7,029 | |||||||||
| Intangible assets, net |
6,820 | 6,436 | 6,375 | |||||||||
| Other |
37,792 | 24,660 | 33,614 | |||||||||
| Total assets |
$ | 1,516,175 | $ | 1,194,996 | $ | 1,386,529 | ||||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||
| Deposits: |
||||||||||||
| Demand noninterest-bearing |
$ | 123,021 | $ | 99,893 | $ | 106,586 | ||||||
| Savings and interest-bearing transaction |
429,137 | 359,706 | 396,443 | |||||||||
| Time |
636,517 | 487,475 | 559,035 | |||||||||
| Total deposits |
1,188,675 | 947,074 | 1,062,064 | |||||||||
| Repurchase agreements with customers |
39,227 | 37,697 | 29,898 | |||||||||
| Other borrowings |
155,702 | 98,594 | 145,541 | |||||||||
| Subordinated debentures |
28,867 | 17,783 | 46,651 | |||||||||
| Accrued interest and other liabilities |
3,382 | 3,830 | 3,889 | |||||||||
| Total liabilities |
1,415,853 | 1,104,978 | 1,288,043 | |||||||||
| Commitments and contingencies |
||||||||||||
| Stockholders’ equity: |
||||||||||||
| Preferred stock; $0.01 par value, 1,000,000 shares authorized, no shares issued and outstanding |
— | — | — | |||||||||
| Common stock; $0.01 par value, 50,000,000 shares authorized at June 30, 2004 and December 31, 2003 and 10,000,000 shares authorized at June 30, 2003; 16,391,390, 16,109,140 (split adjusted) and 16,232,540 shares issued and outstanding at June 30, 2004, June 30, 2003 and December 31, 2003, respectively |
164 | 81 | 162 | |||||||||
| Additional paid-in capital |
29,153 | 25,773 | 27,131 | |||||||||
| Retained earnings |
81,231 | 62,425 | 71,293 | |||||||||
| Accumulated other comprehensive (loss) income |
(10,226 | ) | 1,739 | (100 | ) | |||||||
| Total stockholders’ equity |
100,322 | 90,018 | 98,486 | |||||||||
| Total liabilities and stockholders’ equity |
$ | 1,516,175 | $ | 1,194,996 | $ | 1,386,529 | ||||||
See accompanying notes to consolidated financial statements.
1
CONSOLIDATED STATEMENTS OF INCOME
(Dollars in thousands, except per share amounts)
Unaudited
| Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||||||
| 2004 |
2003 |
2004 |
2003 |
|||||||||||||
| Interest income: |
||||||||||||||||
| Loans and leases |
$ | 15,573 | $ | 13,412 | $ | 30,506 | $ | 26,104 | ||||||||
| Investment securities: |
||||||||||||||||
| Taxable |
3,743 | 3,065 | 6,975 | 5,967 | ||||||||||||
| Tax-exempt |
1,043 | 338 | 2,105 | 619 | ||||||||||||
| Deposits with banks and federal funds sold |
5 | 7 | 9 | 15 | ||||||||||||
| Total interest income |
20,364 | 16,822 | 39,595 | 32,705 | ||||||||||||
| Interest expense: |
||||||||||||||||
| Deposits |
3,677 | 3,332 | 7,082 | 6,644 | ||||||||||||
| Repurchase agreements with customers |
84 | 88 | 149 | 153 | ||||||||||||
| Other borrowings |
1,231 | 1,218 | 2,368 | 2,450 | ||||||||||||
| Subordinated debentures |
651 | 409 | 1,356 | 817 | ||||||||||||
| Total interest expense |
5,643 | 5,047 | 10,955 | 10,064 | ||||||||||||
| Net interest income |
14,721 | 11,775 | 28,640 | 22,641 | ||||||||||||
| Provision for loan and lease losses |
(1,045 | ) | (1,095 | ) | (1,790 | ) | (1,845 | ) | ||||||||
| Net interest income after provision for loan and lease losses |
13,676 | 10,680 | 26,850 | 20,796 | ||||||||||||
| Noninterest income: |
||||||||||||||||
| Service charges on deposit accounts |
2,441 | 1,981 | 4,548 | 3,655 | ||||||||||||
| Mortgage lending income |
985 | 1,626 | 1,800 | 2,668 | ||||||||||||
| Trust income |
358 | 312 | 659 | 548 | ||||||||||||
| Bank owned life insurance income |
254 | 291 | 507 | 575 | ||||||||||||
| Gain on sale of securities |
752 | 97 | 752 | 97 | ||||||||||||
| Other |
414 | 275 | 931 | 573 | ||||||||||||
| Total noninterest income |
5,204 | 4,582 | 9,197 | 8,116 | ||||||||||||
| Noninterest expense: |
||||||||||||||||
| Salaries and employee benefits |
4,973 | 4,511 | 9,824 | 8,578 | ||||||||||||
| Net occupancy and equipment |
1,254 | 1,095 | 2,467 | 2,089 | ||||||||||||
| Other operating expenses |
3,383 | 2,148 | 5,702 | 3,841 | ||||||||||||
| Total noninterest expense |
9,610 | 7,754 | 17,993 | 14,508 | ||||||||||||
| Income before income taxes |
9,270 | 7,508 | 18,054 | 14,404 | ||||||||||||
| Provision for income taxes |
3,010 | 2,668 | 5,829 | 5,089 | ||||||||||||
| Net income |
$ | 6,260 | $ | 4,840 | $ | 12,225 | $ | 9,315 | ||||||||