Friday, January 25, 2013

OZRK Q4 & FY 2012 and Another Acquisition!

OZRK announced Q4 Earnings of $20.7 million, including $1.1 in gains from their acquisition of Genala bank, which closed 12/31/12. Aside from the day-1 gain on the acquisition, none of Genala’s results are included in OZRK’s Q4. Including these gains, this is a 17.6% increase from Q4 2012. FY 2012 amounted to$77.0 million, compared to FY 2011’s $101.3 million- although that included gains from 3 FDIC-assisted acquisitions. Total loans and leases increased 2.3% to $2.12 billion over 2011 while covered loans and leases declined (which is to be expected). On the other side of the balance sheet, deposits grew 5.3% from $2.94 billion in 2011 to $3.10 billion at the end of 2012.

Breakdown: Net Interest Income $43.8 million in Q4 2012 down $45.8 million in Q4 11, but was $174.3 million in all of ’12, up 3.3% in ’11. Quarterly NIM was down 12 bps, annual up 7bps. I’m not going to discuss Non-Interest Income as a whole since it includes acquisition gains in Q4 ’12 and FY ’11. Service charges down 2.8% on the quarter, up 7.2% on the year. Mortgage lending soared to 1.48 million, up 29.3% for Q4 2012 and annually was 5.58 million, up 70.4$ from 2011. Non-Interest expense increased marginally and both Q4 ’11 and ’12 included pre-tax acquisition and conversion costs. On an annual basis, non-interest expense was 114.5 million for ’12, down 6.6% from 122.5 million in ’11 (includes 6.3 million in acquisition costs). Efficiency Ratio was 41.6% in 2011, up to 46.6% in 2012.

As always, I look forward to the full 10-k, but this looks like a solid quarter with solid earnings and (finally) an accretive acquisition. OZRK had 3 acquisitions in 2011, so it is important to remember that for a lot of these numbers, comparing year to year or quarter to quarter is not exactly apples to apples.

Speaking of acquisitions, OZRK announced yesterday after close of market their acquisition of First National Bank of Shelby in Shelby, North Carolina. First national has 14 North Carolina banking offices  with (as of 12/31/12) $857 million assets including $474 million loans. First nation also hold $652 million in deposits and has been operating for almost 140 years. The transaction is valued at approximately $67.8 million; at least 51% of this consideration will consist of OZRK stock. More as I find it.


No comments: