Bank OZK announced fourth quarter 2020 net income of $120.5 million and diluted earnings per common share of $0.93. For the full year of 2020, net income was $291.9 million and diluted earnings per common share were $2.26.
Highlights of the fourth quarter include:
- Outstanding Financial Results. Our $120.5 million of net income for the fourth quarter was up 19.5% from the fourth quarter of 2019 and was our second best quarterly net income ever. Importantly, our net interest income for the quarter was a record $237.6 million, an increase of $12.9 million sequentially, or 5.8% not annualized, from the third quarter of 2020. Diluted earnings per common share for the fourth quarter of 2020 were $0.93, a 19.2% increase from the fourth quarter of 2019.
- Strong RESG Origination Volume. Loan originations for our Real Estate Specialties Group (“RESG”) for the fourth quarter and full year of 2020 were $1.77 billion and $6.59 billion, respectively. It is a great credit to our RESG team and evidence of our leadership in the sector, that RESG’s 2020 origination volume exceeded its 2019 origination volume.
- Excellent Asset Quality. Our continued focus on asset quality showed very well throughout 2020 as reflected in our annualized net charge-off ratios for the quarter just ended of 0.14% for both non-purchased loans (loans we originated) and total loans. For the full year of 2020, our net charge-off ratio for non-purchased loans was just 0.09% and for total loans was 0.16%. Our December 31, 2020 ratios of nonperforming non-purchased loans to total non-purchased loans and nonperforming assets to total assets (excludes purchased loans, except for their inclusion in total assets) were just 0.25% and 0.21%, respectively.
- Strong Deposit Growth. Our commitment to our customers and communities, combined with our reputation for strength, stability and service, allowed us to achieve $163 million of deposit growth during the quarter, bringing our deposit growth for the full year of 2020 to $2.98 billion.
- Robust Capital. Our strong capital position is among the best in the industry. At December 31, 2020, all of our regulatory capital ratios were substantially above the regulatory ratios required to be considered “well-capitalized.” This positions us well to navigate the current economic environment and to capitalize on future opportunities.
- Excellent Efficiency. Our efficiency ratio for the quarter was 38.6%, our best quarterly result for 2020 and among the best in the industry.
George Gleason, Chairman and CEO Statement in Earnings Release
“We are pleased to report one of our best quarters ever, highlighted by record quarterly net interest income, our second highest quarterly net income in company history, excellent asset quality and an efficiency ratio among the best in the industry. It was a strong finish to a challenging year. Our strong capital and liquidity, our disciplined credit culture and our exceptional team have us well positioned for the future.”
Bank OZK’s Earnings Release and Management Comments for the Fourth Quarter and Full Year of 2020 are available here.