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Bank of the Ozarks Reports Operating Results (10-Q)

November 05, 2012 | About:
10qk

10qk

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Bank of the Ozarks (OZRK) filed Quarterly Report for the period ended 2012-09-30.

Bank Of The Ozarks, Inc. has a market cap of $1.12 billion; its shares were traded at around $32.09 with a P/E ratio of 15.2 and P/S ratio of 3.5. The dividend yield of Bank Of The Ozarks, Inc. stocks is 1.7%. Bank Of The Ozarks, Inc. had an annual average earning growth of 13.1% over the past 10 years. GuruFocus rated Bank Of The Ozarks, Inc. the business predictability rank of 3.5-star.

Highlight of Business Operations:

Net income available to common stockholders for Bank of the Ozarks, Inc. (the Company) was $19.3 million for the third quarter of 2012, a 2.0% increase from $18.9 million for the third quarter of 2011. Diluted earnings per common share were $0.55 for both the third quarter of 2012 and the third quarter of 2011. For the first nine months of 2012, net income available to common stockholders was $56.4 million, a 32.7% decrease from $83.8 million for the first nine months of 2011. Diluted earnings per common share for the first nine months of 2012 were $1.62, a 33.3% decrease from $2.43 for the first nine months of 2011.

Net interest income for the third quarter of 2012 decreased 0.1% to $46.5 million compared to $46.6 million for the third quarter of 2011. Net interest income for the nine months ended September 30, 2012 increased 5.7% to $137.1 million compared to $129.7 million for the nine months ended September 30, 2011. Net interest margin was 5.97% for the third quarter and 5.93% for the first nine months of 2012 compared to 5.90% for the third quarter and 5.77% for the first nine months of 2011. The 0.1% decrease in net interest income for the third quarter of 2012 compared to the third quarter of 2011 was primarily due to a decrease in average earning assets from $3.13 billion for the third quarter of 2011 to $3.10 billion for the third quarter of 2012, almost fully offset by an increase in net interest margin, which increased seven basis points (bps). The increase in net interest income for the first nine months of 2012 compared to the first nine months of 2011 was a result of the increase in average earning assets from $3.01 billion for the first nine months of 2011 to $3.09 billion for the first nine months of 2012 and the improvement in net interest margin, which increased 20 bps in the first nine months of 2012 compared to the first nine months of 2011.

The decrease in average earning assets for the third quarter of 2012 compared to the third quarter of 2011 was primarily due to decreases in the average balances of covered loans of $202 million and aggregate investment securities of $41 million, partially offset by an increase in the average balance of non-covered loans and leases of $207 million. The increase in average earning assets for the first nine months of 2012 compared to the first nine months of 2011 was primarily due to the $118 million increase in the average balance of non-covered loans and leases, partially offset by decreases in the average balances of investment securities of $24 million and covered loans of $12 million.

The Company had no sales of investment securities in the third quarter of 2012 compared with net gains of $0.6 million from the sale of $58 million of investment securities in the third quarter of 2011. The Company had net gains of $0.4 million from the sale of $8 million of investment securities in the first nine months of 2012 compared to net gains of $1.0 million from the sale of $96 million of investment securities in the first nine months of 2011. During the quarters ended September 30, 2012 and 2011, respectively, investment securities totaling $16 million and $9 million matured, were called or were paid down by the issuer. During the nine months ended September 30, 2012 and 2011, respectively, investment securities totaling $46 million and $20 million matured, were called or paid down by the issuer. The Company purchased $17 million and $10,000 of investment securities during the quarters ended September 30, 2012 and 2011, respectively, and purchased $27 million and $8 million of investment securities during the first nine months of 2012 and 2011, respectively.

Investing activities provided $160.7 million in the nine months ended September 30, 2012 and $704.7 million in the nine months ended September 30, 2011. Net activity in the Companys investment securities portfolio provided $28.1 million and $109.5 million in the nine months ended September 30, 2012 and 2011, respectively. Net non-covered loans and leases used $136.3 million and $2.9 million in the nine months ended September 30, 2012 and 2011, respectively. Payments received on covered loans provided $157.9 million and $148.0 million for the nine months ended September 30, 2012 and 2011, respectively, and payments received from the FDIC under loss share agreements provided $122.7 million and $58.7 million for the nine months ended September 30, 2012 and 2011, respectively. The Company received net cash of $365.4 million in the nine months ended September 30, 2011 (none in the quarter ended September 30, 2012) in connection with its FDIC-assisted acquisitions. Other loss share activity provided $12.7 million and $18.3 million in the nine months ended September 30, 2012 and 2011, respectively. The Company had proceeds from sales of other assets of $46.3 million and $26.2 million in the nine months ended September 30, 2012 and 2011, respectively. Purchases of premises and equipment used $40.9 million and $16.8 million in the nine months ended September 30, 2012 and 2011, respectively. During the third quarter of 2012, the Company purchased $30.0 million of additional BOLI.

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