Friday, April 27, 2012

OZRK Q1 2012 Earnings Report

The Bank of the Ozarks held their Q1 2012 earnings report conference call Thursday, April 12. Net income was 18m, up 24.1% from Q1 2011. They saw a 21.5% increase in net interest income over Q1 2011, driven by a net interest margin of 5.98%, up 37bps from Q1 2011. Their average earning assets increased 11.9% with a 5.55% spread between yield on non-covered loans/leases and the cost of interest-bearing deposits as well as an 8.6% yield on covered loans. Management reiterated guidance of a minimum of 240m in new loans for 2012, 360m in 2013 and 500m in 2014. Non-interest income also increased 6.3% over Q1 2011 with a 22.3% increase in service charge income over Q1 2011. Mortgage lending was up 61.7% from Q1 2011. Net charge-off ratio for non-covered loans was 44bps, down from 72 in Q1 2011 and 69bps for all of 2011. In the past quarter, they opened 2 new office with plans of opening 3 more and relocating 3 others to larger and updated offices by the end of the year. OZRK continues to pursue additional FDIC-assisted acquisitions, as well as traditional M&A activity. Management anticipates achieving increased income quarter-over-quarter for the remainder of the year.
Stock initially dropped 3% but has since recovered and closed at 31.43.

No comments: