Bank of the Ozarks Inc. on Tuesday announced record fourth quarter net income of $87.8 million, a 71 percent increase from quarterly net income of $51.5 million a year ago.
The performance helped power the Little Rock bank holding company (Nasdaq: OZRK) to record earnings of $270 million during 2016, a 48 percent increase over 2015.
The acquisitions of Community & Southern Holdings Inc. and C1 Financial Inc. in July 2016 contributed mightily to the fiscal growth, nearly doubling the size of the company.
Record profits were among a list of financial achievements itemized in a prepared statement by George Gleason, chairman and CEO of the $18.9 billion-asset lender.
"We are very pleased to report our record results for both the fourth quarter and full year of 2016, including quarterly and annual records in net income, diluted earnings per common share, net interest income, service charge income and trust income, as well as quarterly growth of $845 million in non-purchased loans and leases, an excellent 5.02 percent net interest margin, a superb 34.3 percent efficiency ratio (for the quarter) and pristine asset quality," Gleason said.
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The company's efficiency ratio for 2016 improved to 35.8 percent compared to 38.4 percent for 2015. Other year-over-year highlights at the company included:
• Total loans and leases, including purchased loans, were $14.56 billion at Dec. 31, a 75 percent increase from $8.33 billion in 2015.
• Non-purchased loans and leases were $9.61 billion at Dec. 31, a 47 percent increase from $6.53 billion in 2015.
• Purchased loans were $4.96 billion at Dec. 31, a 174 percent increase from $1.81 billion at Dec. 31, 2015, but an 8 percent decrease from $5.40 billion at Sept. 30.
• Deposits were $15.57 billion at Dec. 31, a 95 percent increase from $7.97 billion in 2015.
• Total assets were $18.89 billion at Dec. 31, a 91 percent increase from $9.88 billion in 2015.
• Diluted earnings per common share for the fourth quarter of 2016 were 72 cents, a 26 percent increase from 57 cents for the fourth quarter of 2015.
• Diluted earnings per common share for 2016 were $2.58, a 23 percent increase from $2.09 for 2015.
• Returns on average assets, average common stockholders' equity and average tangible common stockholders' equity for the full year of 2016 were 1.89 percent, 13.05 percent and 16.25 percent, respectively, compared to 2.11 percent, 14.97 percent and 17.02 percent, respectively, for the full year of 2015.
Bank of the Ozarks owns a state-chartered subsidiary bank that conducts banking operations through 249 offices in Arkansas, Georgia, Florida, North Carolina, Texas, Alabama, South Carolina, New York and California.