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8-K - OZRK-EARNINGS RELEASE-20170331 - BANK OF THE OZARKS INCozrk-8k_20170411.htm

NEWS RELEASE

Exhibit 99.1

Date:

 

April 11, 2017

Release Time:

 

6:00 a.m. (CT)

Media Contact:

 

Susan Blair (501) 978-2217

Investor Contact:

 

Tim Hicks (501) 978-2336

 

 

Bank of the Ozarks, Inc. Announces Record

First Quarter 2017 Earnings

 

LITTLE ROCK, ARKANSAS:  Bank of the Ozarks, Inc. (NASDAQ: OZRK) today announced that net income for the first quarter of 2017 was a record $89.2 million, a 72.6% increase from $51.7 million for the first quarter of 2016.  Diluted earnings per common share for the first quarter of 2017 were a record $0.73, a 28.1% increase from $0.57 for the first quarter of 2016.  

The Company’s annualized returns on average assets, average common stockholders’ equity and average tangible common stockholders’ equity for the first quarter of 2017 were 1.93%, 12.80% and 17.17%, respectively, compared to 1.98%, 14.00% and 15.59%, respectively, for the first quarter of 2016. The calculation of the Company’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 very pleased to report our excellent results for the first quarter of 2017, including quarterly records in net income, diluted earnings per common share and trust income, $612 million growth in the funded balance of non-purchased loans and leases, $1.19 billion growth in the unfunded balance of non-purchased loans and leases, a 4.88% net interest margin, a 35.0% efficiency ratio and excellent asset quality.”  

KEY BALANCE SHEET METRICS

Total loans and leases, including purchased loans, were $14.80 billion at March 31, 2017, a 59.6% increase from $9.27 billion at March 31, 2016.  Non-purchased loans and leases were $10.22 billion at March 31, 2017, a 34.6% increase from $7.59 billion at March 31, 2016.  Purchased loans were $4.58 billion at March 31, 2017, a 172.9% increase from $1.68 billion at March 31, 2016, but a 7.6% decrease from $4.96 billion at December 31, 2016.  The unfunded balance of closed loans totaled $11.26 billion at March 31, 2017, a 76.4% increase from $6.38 billion at March 31, 2016 and an 11.8% increase from $10.07 billion at December 31, 2016.

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Deposits were $15.71 billion at March 31, 2017, a 63.2% increase from $9.63 billion at March 31, 2016.  Total assets were $19.16 billion at March 31, 2017, a 67.7% increase from $11.43 billion at March 31, 2016.

Common stockholders’ equity was $2.87 billion at March 31, 2017, a 90.5% increase from $1.51 billion at March 31, 2016.  Tangible common stockholders’ equity was $2.15 billion at March 31, 2017, a 58.8% increase from $1.36 billion at March 31, 2016.  Book value per common share was $23.63 at March 31, 2017, a 42.2% increase from $16.62 at March 31, 2016.  Tangible book value per common share was $17.72 at March 31, 2017, an 18.4% increase from $14.96 at March 31, 2016.  The calculations of the Company’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 Company’s ratio of common stockholders’ equity to total assets was 15.00% at March 31, 2017 compared to 13.20% at March 31, 2016.  Its ratio of tangible common stockholders’ equity to total tangible assets was 11.69% at March 31, 2017 compared to 12.04% at March 31, 2016. The calculation of the Company’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 first quarter of 2017 was $190.8 million, a 69.5% increase from $112.5 million for the first quarter of 2016, but a 2.1% decrease compared to $194.8 million for the fourth quarter of 2016.  Net interest margin, on a fully taxable equivalent (“FTE”) basis, was 4.88% for the first quarter of 2017, a decrease of four basis points from 4.92% for the first quarter of 2016. Average earning assets were $16.14 billion for the first quarter of 2017, a 72.5% increase from $9.36 billion for the first quarter of 2016.

NON-INTEREST INCOME

Non-interest income for the first quarter of 2017 increased 46.3% to $29.1 million compared to $19.9 million for the first quarter of 2016, but decreased 4.9% compared to $30.6 million for the fourth quarter of 2016.  

NON-INTEREST EXPENSE

Non-interest expense for the first quarter of 2017 increased 64.1% to $78.3 million compared to $47.7 million for the first quarter of 2016, but decreased 0.1% compared to $78.4 million for the fourth quarter of 2016.  

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The Company’s efficiency ratio (non-interest expense divided by the sum of net interest income FTE and non-interest income) for the first quarter of 2017 was 35.0% compared to 35.5% for the first quarter of 2016.

ASSET QUALITY, CHARGE-OFFS AND ALLOWANCE

Excluding purchased loans, the Company’s ratio of nonperforming loans and leases as a percent of total loans and leases was 0.11% at March 31, 2017 compared to 0.15% at March 31, 2016.

Excluding purchased loans, the Company’s ratio of nonperforming assets as a percent of total assets was 0.25% at March 31, 2017 compared to 0.29% at March 31, 2016.

Excluding purchased loans, 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 0.16% at March 31, 2017 compared to 0.23% at March 31, 2016.

The Company’s annualized net charge-off ratio for non-purchased loans and leases was 0.05% for the first quarter of 2017 compared to 0.06% for the first quarter of 2016.  The Company’s annualized net charge-off ratio for all loans and leases was 0.09% for the first quarter of 2017 compared to 0.05% for the first quarter of 2016.  

The Company’s allowance for loan and lease losses for its non-purchased loans and leases was $76.6 million, or 0.75% of total non-purchased loans and leases, at March 31, 2017 compared to $60.6 million, or 0.80% of total non-purchased loans and leases, at March 31, 2016 and compared to $74.9 million, or 0.78% of total non-purchased loans and leases, at December 31, 2016. The Company had $1.6 million of allowance for loan and lease losses for its purchased loans at March 31, 2017 compared to $1.2 million at March 31, 2016 and $1.6 million at December 31, 2016.

CONFERENCE CALL AND TRANSCRIPT

Management will conduct a conference call to discuss its quarterly results at 10:00 a.m. CT (11:00 a.m. ET) on April 11, 2017.  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 1-855-859-2056 or 1-800-585-8367 (U.S. and Canada) or 404-537-3406 (internationally).  The passcode for this playback is 87260238.  The call will be available live or in a recorded version on the Company’s website www.bankozarks.com under “Investor Relations.”  The Company will also provide a transcript of the conference call on the Company’s website under Investor Relations.  The transcript will be available for 90 days.

3

 


NON-GAAP FINANCIAL MEASURES

This release contains certain non-GAAP financial measures.  The Company’s management uses these non-GAAP financial measures, specifically return on average tangible common stockholders’ equity, tangible book value per common share 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 Company. 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 companies. 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 Company include certain “forward-looking statements” regarding the Company’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 Company’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, including the proposed reorganization; problems with managing acquisitions; the effect of the announcements of any future acquisition on customer relationships and operating results; the ability to consummate the proposed reorganization, including the receipt of shareholder approval and the receipt of required regulatory approvals; the

4

 


availability and access to capital; possible downgrades in the Company’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 and leases, 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 Company’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 and lessees, collateral values, the value of investment securities and asset recovery values; changes in legal and regulatory requirements, including additional legal and regulatory requirements to which the Company is subject as a result of its total assets exceeding $10 billion; recently enacted and potential legislation and regulatory actions and the costs and expenses to comply with new legislation and regulatory actions; changes in U.S. government monetary and fiscal policy; possible further downgrade of U.S. Treasury securities; the ability to keep pace with technological changes, including changes regarding maintaining cybersecurity; an increase in the incidence or severity of fraud, illegal payments, security breaches or other illegal acts impacting the Company 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 as well as other factors identified in this press release or as detailed from time to time in the Company’s reports filed with the Securities and Exchange Commission (“SEC”), including those factors included in the disclosures under the headings “Forward-Looking Information” and “Item 1A. Risk Factors” in the Company’s most recent Annual Report on Form 10-K for the year ended December 31, 2016 or its 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 Company 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, Inc. shares trade on the NASDAQ Global Select Market under the symbol “OZRK.”  The Company owns a state-chartered subsidiary bank that conducts banking operations through 250 offices in Arkansas, Georgia, Florida, North Carolina, Texas, Alabama, South Carolina, New York and California.  The Company may be contacted at (501) 978-2265 or P. O. Box 8811,

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Little Rock, Arkansas 72231-8811.  The Company can be found at www.bankozarks.com and on Facebook, Twitter and LinkedIn.  

6

 


Bank of the Ozarks, Inc.

Selected Consolidated Financial Data

(Dollars in Thousands, Except Per Share Amounts)

Unaudited

 

 

 

 

Quarter Ended

March 31,

 

 

 

2017

 

 

2016

 

 

% Change

 

Income statement data:

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

$

190,771

 

 

$

112,517

 

 

 

69.5

%

Provision for loan and lease losses

 

 

4,933

 

 

 

2,017

 

 

 

144.6

 

Non-interest income

 

 

29,058

 

 

 

19,865

 

 

 

46.3

 

Non-interest expense

 

 

78,268

 

 

 

47,686

 

 

 

64.1

 

Net income available to common stockholders

 

 

89,188

 

 

 

51,688

 

 

 

72.6

 

Common stock data:

 

 

 

 

 

 

 

 

 

 

 

 

Net income per share - diluted

 

$

0.73

 

 

$

0.57

 

 

 

28.1

%

Net income per share - basic

 

 

0.73

 

 

 

0.57

 

 

 

28.1

 

Cash dividends per share

 

 

0.17

 

 

 

0.15

 

 

 

13.3

 

Book value per share

 

 

23.63

 

 

 

16.62

 

 

 

42.2

 

Tangible book value per share(1)

 

 

17.72

 

 

 

14.96

 

 

 

18.4

 

Diluted shares outstanding (thousands)

 

 

121,816

 

 

 

91,251

 

 

 

 

 

End of period shares outstanding (thousands)

 

 

121,575

 

 

 

90,714

 

 

 

 

 

Balance sheet data at period end:

 

 

 

 

 

 

 

 

 

 

 

 

Assets

 

$

19,158,746

 

 

$

11,427,419

 

 

 

67.7

%

Non-purchased loans and leases

 

 

10,216,875

 

 

 

7,591,339

 

 

 

34.6

 

Purchased loans

 

 

4,580,047

 

 

 

1,678,351

 

 

 

172.9

 

Allowance for loan and lease losses

 

 

78,224

 

 

 

61,760

 

 

 

26.7

 

Foreclosed assets

 

 

36,899

 

 

 

22,248

 

 

 

65.9

 

Investment securities

 

 

1,470,568

 

 

 

627,946

 

 

 

134.2

 

Goodwill

 

 

660,789

 

 

 

125,693

 

 

 

425.7

 

Other intangibles - net of amortization

 

 

57,686

 

 

 

25,172

 

 

 

129.2

 

Deposits

 

 

15,713,427

 

 

 

9,626,825

 

 

 

63.2

 

Repurchase agreements with customers

 

 

80,609

 

 

 

65,883

 

 

 

22.4

 

Other borrowings

 

 

42,291

 

 

 

41,933

 

 

 

0.9

 

Subordinated notes

 

 

222,611

 

 

 

 

 

 

 

Subordinated debentures

 

 

118,380

 

 

 

117,823

 

 

 

0.5

 

Common stockholders’ equity

 

 

2,873,317

 

 

 

1,508,080

 

 

 

90.5

 

Net unrealized (losses) gains on investment securities AFS included

   in common stockholders' equity

 

 

(18,067

)

 

 

10,431

 

 

 

 

 

Loan and lease (including purchased loans) to deposit ratio

 

 

94.17

%

 

 

96.29

%

 

 

 

 

Selected ratios:

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets (2)

 

 

1.93

%

 

 

1.98

%

 

 

 

 

Return on average common stockholders’ equity (2)

 

 

12.80

 

 

 

14.00

 

 

 

 

 

Return on average tangible common stockholders’ equity (1) (2)

 

 

17.17

 

 

 

15.59

 

 

 

 

 

Average common equity to total average assets

 

 

15.08

 

 

 

14.15

 

 

 

 

 

Net interest margin – FTE (2)

 

 

4.88

 

 

 

4.92

 

 

 

 

 

Efficiency ratio

 

 

35.03

 

 

 

35.51

 

 

 

 

 

Net charge-offs to average non-purchased loans and leases (2) (3)

 

 

0.05

 

 

 

0.06

 

 

 

 

 

Net charge-offs to average total loans and leases(2)

 

 

0.09

 

 

 

0.05

 

 

 

 

 

Nonperforming loans and leases to total loans and leases(4)

 

 

0.11

 

 

 

0.15

 

 

 

 

 

Nonperforming assets to total assets(4)

 

 

0.25

 

 

 

0.29

 

 

 

 

 

Allowance for loan and lease losses to non-purchased

   loans and leases(4)

 

 

0.75

 

 

 

0.80

 

 

 

 

 

Other information:

 

 

 

 

 

 

 

 

 

 

 

 

Non-accrual loans and leases(4)

 

$

11,069

 

 

$

11,374

 

 

 

 

 

Accruing loans and leases - 90 days past due(4)

 

 

 

 

 

 

 

 

 

 

Troubled and restructured loans and leases(4)

 

 

 

 

 

 

 

 

 

 

Impaired purchased loans

 

 

13,869

 

 

 

6,974

 

 

 

 

 

 

 

 

(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, Inc.

Supplemental Quarterly Financial Data

(Dollars in Thousands, Except Per Share Amounts)

Unaudited

  

 

6/30/15

 

 

9/30/15

 

 

12/31/15

 

 

3/31/16

 

6/30/16

 

9/30/16

 

12/31/16

 

3/31/17

 

Earnings Summary:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

$

93,756

 

 

$

96,387

 

 

$

106,518

 

 

$

112,517

 

$

119,038

 

$

175,150

 

$

194,800

 

$

190,771

 

Federal tax (FTE) adjustment

 

 

2,552

 

 

 

2,368

 

 

 

2,092

 

 

 

1,911

 

 

2,067

 

 

2,533

 

 

3,254

 

 

3,594

 

Net interest income (FTE)

 

 

96,308

 

 

 

98,755

 

 

 

108,610

 

 

 

114,428

 

 

121,105

 

 

177,683

 

 

198,054

 

 

194,365

 

Provision for loan and lease losses

 

 

(4,308

)

 

 

(3,581

)

 

 

(5,211

)

 

 

(2,017

)

 

(4,834

)

 

(7,086

)

 

(9,855

)

 

(4,933

)

Non-interest income

 

 

23,270

 

 

 

22,138

 

 

 

30,540

 

 

 

19,865

 

 

22,733

 

 

29,231

 

 

30,571

 

 

29,058

 

Non-interest expense

 

 

(43,724

)

 

 

(45,428

)

 

 

(51,646

)

 

 

(47,686

)

 

(50,928

)

 

(78,781

)

 

(78,358

)

 

(78,268

)

Pretax income (FTE)

 

 

71,546

 

 

 

71,884

 

 

 

82,293

 

 

 

84,590

 

 

88,076

 

 

121,047

 

 

140,412

 

 

140,222

 

FTE adjustment

 

 

(2,552

)

 

 

(2,368

)

 

 

(2,092

)

 

 

(1,911

)

 

(2,067

)

 

(2,533

)

 

(3,254

)

 

(3,594

)

Provision for income taxes

 

 

(24,190

)

 

 

(23,385

)

 

 

(28,740

)

 

 

(30,984

)

 

(31,514

)

 

(42,470

)

 

(49,312

)

 

(47,417

)

Noncontrolling interest

 

 

(28

)

 

 

(3

)

 

 

(6

)

 

 

(7

)

 

(21

)

 

(14

)

 

(59

)

 

(23

)

Net income available to

   common stockholders

 

$

44,776

 

 

$

46,128

 

 

$

51,455

 

 

$

51,688

 

$

54,474

 

$

76,030

 

$

87,787

 

$

89,188

 

Earnings per common share – diluted

 

$

0.51

 

 

$

0.52

 

 

$

0.57

 

 

$

0.57

 

$

0.60

 

$

0.66

 

$

0.72

 

$

0.73

 

Non-interest Income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Service charges on deposit accounts

 

$

7,088

 

 

$

7,425

 

 

$

7,558

 

 

$

7,657

 

$

8,119

 

$

10,926

 

$

11,759

 

$

11,301

 

Mortgage lending income

 

 

1,772

 

 

 

1,825

 

 

 

1,713

 

 

 

1,284

 

 

2,057

 

 

2,616

 

 

2,097

 

 

1,574

 

Trust income

 

 

1,463

 

 

 

1,500

 

 

 

1,508

 

 

 

1,507

 

 

1,574

 

 

1,564

 

 

1,623

 

 

1,631

 

BOLI income

 

 

1,785

 

 

 

2,264

 

 

 

2,412

 

 

 

2,861

 

 

2,745

 

 

4,638

 

 

4,564

 

 

4,464

 

Other income from purchased loans

 

 

6,971

 

 

 

5,456

 

 

 

4,790

 

 

 

3,052

 

 

4,599

 

 

4,635

 

 

4,993

 

 

3,737

 

Net gains on investment securities

 

 

85

 

 

 

 

 

 

2,863

 

 

 

 

 

 

 

 

 

4

 

 

 

Gains on sales of other assets

 

 

2,557

 

 

 

1,905

 

 

 

7,463

 

 

 

1,027

 

 

998

 

 

594

 

 

1,537

 

 

1,619

 

Other

 

 

1,549

 

 

 

1,763

 

 

 

2,233

 

 

 

2,477

 

 

2,641

 

 

4,258

 

 

3,994

 

 

4,732

 

Total non-interest income

 

$

23,270

 

 

$

22,138

 

 

$

30,540

 

 

$

19,865

 

$

22,733

 

$

29,231

 

$

30,571

 

$

29,058

 

Non-interest Expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

$

22,646

 

 

$

21,207

 

 

$

21,504

 

 

$

23,362

 

$

24,921

 

$

38,069

 

$

36,481

 

$

38,554

 

Net occupancy expense

 

 

7,344

 

 

 

8,076

 

 

 

8,537

 

 

 

8,531

 

 

8,388

 

 

11,669

 

 

13,936

 

 

13,192

 

Other operating expenses

 

 

12,094

 

 

 

14,448

 

 

 

19,879

 

 

 

14,067

 

 

16,062

 

 

26,447

 

 

24,783

 

 

23,377

 

Amortization of intangibles

 

 

1,640

 

 

 

1,697

 

 

 

1,726

 

 

 

1,726

 

 

1,557

 

 

2,596

 

 

3,158

 

 

3,145

 

Total non-interest expense

 

$

43,724

 

 

$

45,428

 

 

$

51,646

 

 

$

47,686

 

$

50,928

 

$

78,781

 

$

78,358

 

$

78,268

 

Allowance for Loan and Lease Losses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at beginning of period

 

$

54,147

 

 

$

56,749

 

 

$

59,017

 

 

$

60,854

 

$

61,760

 

$

65,133

 

$

69,760

 

$

76,541

 

Net charge-offs

 

 

(1,706

)

 

 

(1,313

)

 

 

(3,374

)

 

 

(1,111

)

 

(1,461

)

 

(2,459

)

 

(3,074

)

 

(3,250

)

Provision for loan and lease losses

 

 

4,308

 

 

 

3,581

 

 

 

5,211

 

 

 

2,017

 

 

4,834

 

 

7,086

 

 

9,855

 

 

4,933

 

Balance at end of period

 

$

56,749

 

 

$

59,017

 

 

$

60,854

 

 

$

61,760

 

$

65,133

 

$

69,760

 

$

76,541

 

$

78,224

 

Selected Ratios:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest margin – FTE (1)

 

 

5.37

%

 

 

5.07

%

 

 

4.98

%

 

 

4.92

%

 

4.82

%

 

4.90

%

 

5.02

%

 

4.88

%

Efficiency ratio

 

 

36.56

 

 

 

37.58

 

 

 

37.12

 

 

 

35.51

 

 

35.41

 

 

38.07

 

 

34.27

 

 

35.03

 

Net charge-offs to average

   non-purchased loans and leases (1) (2)

 

 

0.12

 

 

 

0.05

 

 

 

0.22

 

 

 

0.06

 

 

0.05

 

 

0.06

 

 

0.08

 

 

0.05

 

Net charge-offs to average

   total loans and leases (1)

 

 

0.11

 

 

 

0.08

 

 

 

0.17

 

 

 

0.05

 

 

0.06

 

 

0.07

 

 

0.09

 

 

0.09

 

Nonperforming loans and leases

   to total loans and leases (3)

 

 

0.34

 

 

 

0.26

 

 

 

0.20

 

 

 

0.15

 

 

0.09

 

 

0.08

 

 

0.15

 

 

0.11

 

Nonperforming assets to total assets (3)

 

 

0.49

 

 

 

0.41

 

 

 

0.37

 

 

 

0.29

 

 

0.25

 

 

0.28

 

 

0.31

 

 

0.25

 

Allowance for loan and lease losses to

   total non-purchased loans and leases (3)

 

 

1.19

 

 

 

1.08

 

 

 

0.91

 

 

 

0.80

 

 

0.78

 

 

0.78

 

 

0.78

 

 

0.75

 

Loans and leases past due 30 days or

   more, including past due non-accrual

   loans and leases, to total loans and

   leases (3)

 

 

0.50

 

 

 

0.41

 

 

 

0.28

 

 

 

0.23

 

 

0.22

 

 

0.17

 

 

0.16

 

 

0.16

 

 

 

(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, Inc.

Average Consolidated Balance Sheets and Net Interest Analysis – FTE

Unaudited

 

 

Quarter Ended March 31,

 

 

 

2017

 

 

2016

 

 

 

Average

Balance

 

 

Income/

Expense

 

 

Yield/

Rate

 

 

Average

Balance

 

 

Income/

Expense

 

 

Yield/

Rate

 

 

 

(Dollars in thousands)

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest earning deposits and federal

   funds sold

 

$

41,806

 

 

$

20

 

 

 

0.19

%

 

$

2,987

 

 

$

6

 

 

 

0.77

%

Investment securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable

 

 

663,153

 

 

 

3,816

 

 

 

2.33

 

 

 

264,098

 

 

 

2,270

 

 

 

3.46

 

Tax-exempt – FTE

 

 

803,589

 

 

 

10,019

 

 

 

5.06

 

 

 

338,780

 

 

 

5,281

 

 

 

6.27

 

Non-purchased loans and leases – FTE

 

 

9,827,717

 

 

 

127,515

 

 

 

5.26

 

 

 

7,009,068

 

 

 

87,072

 

 

 

5.00

 

Purchased loans

 

 

4,807,080

 

 

 

75,993

 

 

 

6.41

 

 

 

1,740,827

 

 

 

29,023

 

 

 

6.71

 

Total earning assets – FTE

 

 

16,143,345

 

 

 

217,363

 

 

 

5.46

 

 

 

9,355,760

 

 

 

123,652

 

 

 

5.32

 

Non-interest earning assets

 

 

2,603,381

 

 

 

 

 

 

 

 

 

 

 

1,136,947

 

 

 

 

 

 

 

 

 

Total assets

 

$

18,746,726

 

 

 

 

 

 

 

 

 

 

$

10,492,707

 

 

 

 

 

 

 

 

 

LIABILITIES AND

   STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Savings and interest bearing

   transaction

 

$

7,862,653

 

 

$

8,458

 

 

 

0.44

%

 

$

4,595,405

 

 

$

3,718

 

 

 

0.33

%

Time deposits of $100,000 or more

 

 

3,241,587

 

 

 

7,132

 

 

 

0.89

 

 

 

1,622,703

 

 

 

2,947

 

 

 

0.73

 

Other time deposits

 

 

1,699,858

 

 

 

2,787

 

 

 

0.66

 

 

 

987,231

 

 

 

1,185

 

 

 

0.48

 

Total interest bearing deposits

 

 

12,804,098

 

 

 

18,377

 

 

 

0.58

 

 

 

7,205,339

 

 

 

7,850

 

 

 

0.44

 

Repurchase agreements with customers

 

 

79,884

 

 

 

30

 

 

 

0.15

 

 

 

68,301

 

 

 

19

 

 

 

0.11

 

Other borrowings

 

 

42,137

 

 

 

222

 

 

 

2.14

 

 

 

51,053

 

 

 

302

 

 

 

2.38

 

Subordinated notes

 

 

222,561

 

 

 

3,188

 

 

 

5.81

 

 

 

 

 

 

 

 

 

 

Subordinated debentures

 

 

118,300

 

 

 

1,181

 

 

 

4.05

 

 

 

117,749

 

 

 

1,053

 

 

 

3.60

 

Total interest bearing liabilities

 

 

13,266,980

 

 

 

22,998

 

 

 

0.70

 

 

 

7,442,442

 

 

 

9,224

 

 

 

0.50

 

Non-interest bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest bearing deposits

 

 

2,574,540

 

 

 

 

 

 

 

 

 

 

 

1,508,829

 

 

 

 

 

 

 

 

 

Other non-interest bearing liabilities

 

 

75,107

 

 

 

 

 

 

 

 

 

 

 

53,615

 

 

 

 

 

 

 

 

 

Total liabilities

 

 

15,916,627

 

 

 

 

 

 

 

 

 

 

 

9,004,886

 

 

 

 

 

 

 

 

 

Common stockholders’ equity

 

 

2,826,832

 

 

 

 

 

 

 

 

 

 

 

1,484,657

 

 

 

 

 

 

 

 

 

Noncontrolling interest

 

 

3,267

 

 

 

 

 

 

 

 

 

 

 

3,164

 

 

 

 

 

 

 

 

 

Total liabilities and stockholders’

   equity

 

$

18,746,726

 

 

 

 

 

 

 

 

 

 

$

10,492,707

 

 

 

 

 

 

 

 

 

Net interest income – FTE

 

 

 

 

 

$

194,365

 

 

 

 

 

 

 

 

 

 

$

114,428

 

 

 

 

 

Net interest margin – FTE

 

 

 

 

 

 

 

 

 

 

4.88

%

 

 

 

 

 

 

 

 

 

 

4.92

%

 

 

 

 

 


RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

 

Bank of the Ozarks, Inc.

Calculation of Average Tangible Common

Stockholders’ Equity and the Return on

Average Tangible Common Stockholders’ Equity

Unaudited

 

 

Quarter Ended

 

 

 

March 31,

 

 

 

2017

 

 

2016

 

 

 

(Dollars in thousands)

 

Net income available to common stockholders

 

$

89,188

 

 

$

51,688

 

Average common stockholders’ equity before

   noncontrolling interest

 

$

2,826,832

 

 

$

1,484,657

 

Less average intangible assets:

 

 

 

 

 

 

 

 

Goodwill

 

 

(660,151

)

 

 

(125,448

)

Core deposit and other intangibles, net of

   accumulated amortization

 

 

(59,596

)

 

 

(26,164

)

Total average intangibles

 

 

(719,747

)

 

 

(151,612

)

Average tangible common stockholders’ equity

 

$

2,107,085

 

 

$

1,333,045

 

Return on average common stockholders’ equity(1)

 

 

12.80

%

 

 

14.00

%

Return on average tangible common stockholders’ equity(1)

 

 

17.17

%

 

 

15.59

%

 

(1)Ratios for interim periods annualized based on actual days.

 

 

 

Bank of the Ozarks, Inc.

Calculation of Total Tangible Common

Stockholders’ Equity and Tangible

Book Value per Common Share

Unaudited

 

 

 

March 31,

 

 

 

2017

 

 

2016

 

 

 

(In thousands, except per share amounts)

 

Total common stockholders’ equity before noncontrolling interest

 

$

2,873,317

 

 

$

1,508,080

 

Less intangible assets:

 

 

 

 

 

 

 

 

Goodwill

 

 

(660,789

)

 

 

(125,693

)

Core deposit and other intangibles, net of

   accumulated amortization

 

 

(57,686

)

 

 

(25,172

)

Total intangibles

 

 

(718,475

)

 

 

(150,865

)

Total tangible common stockholders’ equity

 

$

2,154,842

 

 

$

1,357,215

 

Shares of common stock outstanding

 

 

121,575

 

 

 

90,714

 

Book value per common share

 

$

23.63

 

 

$

16.62

 

Tangible book value per common share

 

$

17.72

 

 

$

14.96

 


 


Bank of the Ozarks, Inc.

Calculation of Total Tangible Common Stockholders’

Equity and the Ratio of Total Tangible Common

Stockholders’ Equity to Total Tangible Assets

Unaudited

 

 

March 31,

 

 

 

2017

 

 

2016

 

 

 

(Dollars in thousands)

 

Total common stockholders’ equity before noncontrolling interest

 

$

2,873,317

 

 

$

1,508,080

 

Less intangible assets:

 

 

 

 

 

 

 

 

Goodwill

 

 

(660,789

)

 

 

(125,693

)

Core deposit and other intangibles, net of

   accumulated amortization

 

 

(57,686

)

 

 

(25,172

)

Total intangibles

 

 

(718,475

)

 

 

(150,865

)

Total tangible common stockholders’ equity

 

$

2,154,842

 

 

$

1,357,215

 

Total assets

 

$

19,158,746

 

 

$

11,427,419

 

Less intangible assets:

 

 

 

 

 

 

 

 

Goodwill

 

 

(660,789

)

 

 

(125,693

)

Core deposit and other intangibles, net of

   accumulated amortization

 

 

(57,686

)

 

 

(25,172

)

Total intangibles

 

 

(718,475

)

 

 

(150,865

)

Total tangible assets

 

$

18,440,271

 

 

$

11,276,554

 

Ratio of total common stockholders’ equity to total assets

 

 

15.00

%

 

 

13.20

%

Ratio of total tangible common stockholders’ equity to total

   tangible assets

 

 

11.69

%

 

 

12.04

%