Bank OZK Announces Record Second Quarter Net Income

Q2 Earnings

Bank OZK is pleased to report record second quarter 2021 earnings.

Highlights of the quarter are as follows:

  • Record Net Income. Our $150.5 million of net income and our $1.16 of diluted earnings per common share for the quarter just ended were both our best quarterly results ever.
  • Record Net Interest Income and Improvement in Core Spread. Our net interest income for the quarter was a record $240.7 million, an increase of $24.2 million, or 11.2%, from the second quarter of 2020, and a $6.1 million, or 2.6% not annualized, increase from the level achieved in the first quarter of 2021.  In the quarter just ended, our core spread, which is how we describe the difference between our yield on non-purchased loans and our cost of interest bearing deposits, increased 90 and 24 basis points compared to the second quarter of 2020 and first quarter of 2021, respectively, helping offset the effect of the high level of net loan repayments in the quarter just ended.
  • Excellent Asset Quality. Our focus on asset quality was again evident, as reflected in our annualized net charge-off ratios for the quarter just ended of 0.09% for non-purchased loans and 0.08% for total loans.
  • Efficiency Among the Industry’s Best. Our efficiency ratio for the quarter was 38.4%.
  • Dividend Growth. We recently increased our regular quarterly dividend for the 44th consecutive quarter.
  • Multiple Options for Increasing Shareholder Value. Our combination of strong earnings and robust capital gives us great optionality to increase shareholder value.  Options for deploying our excess capital include organic loan growth, adding new business lines, continuing to increase our cash dividend, financially attractive acquisitions for cash or some combination of cash and stock, and stock repurchases pursuant to our recently adopted stock repurchase program.

George Gleason, Chairman and CEO Comment in Earnings Release

“We are pleased to report record results for the quarter just ended. Our strong capital and liquidity, our disciplined credit culture and our exceptional team have us well positioned for the future.”

Full Report and Management Comments

Bank OZK’s Earnings Release and Management Comments for the 2nd Quarter, 2021 are available here.