Bank of the Ozarks Inc. of Little Rock on Monday announced record second-quarter net income of $54.5 million, up nearly 22 percent from the same quarter last year.
The publicly traded company (Nasdaq: OZRK) said diluted earnings per common share were a record 60 cents, up nearly 18 percent from the same quarter last year.
The earnings beat Wall Street expectations. The average estimate of five analysts surveyed by Zacks Investment Research was for earnings of 58 cents per share, according to the Associated Press.
"We are very pleased with our excellent second quarter results, highlighted by quarterly records for net income, earnings per share, net interest income, service charge income, mortgage income and trust income," Chairman and CEO George Gleason said in a news release. "Combined with our 4.82 percent net interest margin, 35.4 percent efficiency ratio, excellent growth in both the funded and unfunded balances of closed loans, and some of our best asset quality ratios as a public company, we are clearly hitting on all cylinders."
For the six months that ended June 30, net income totaled $106.2 million, up about 25 percent from net income of $84.7 million for the first six months of 2015.
Diluted earnings per common share for the first six months of 2016 were $1.16, up about 18 percent from 98 cents for the first six months of 2015.
Results for the first six months of this year included about $1.3 million of acquisition-related and systems conversion expenses and $100,000 million in software and contract termination charges, the company said.
Last month, the Federal Reserve Board approved Bank of the Ozarks' record-setting deal to buy Community & Southern Bank of Atlanta, along with another deal to buy C1 Financial Inc. of St. Petersburg, Florida. Both deals are set to close before the end of the month.
Total loans and leases, including purchased loans, were $9.73 billion as of June 30, up almost 48 percent from $6.6 billion at June 30, 2015. Deposits were $10.2 billion, up almost 44 percent. Total assets were $12.3 billion, up 41 percent.
Quarterly net interest income was a record $119 million, up 27 percent from the second quarter of 2015. Non-interest income was $22.7 million, down a little more than 2 percent.
The company's second-quarter efficiency ratio improved to 35.4 percent compared to 36.6 percent in the second quarter of 2015.