Company Quick10K Filing
Bank of The Ozarks
Price38.98 EPS3
Shares122 P/E15
MCap4,754 P/FCF14
Net Debt-929 EBIT557
TEV3,825 TEV/EBIT7
TTM 2017-03-31, in MM, except price, ratios
10-Q 2017-03-31 Filed 2017-05-05
10-K 2016-12-31 Filed 2017-03-01
10-Q 2016-09-30 Filed 2016-11-08
10-Q 2016-06-30 Filed 2016-08-08
10-Q 2016-03-31 Filed 2016-05-06
10-K 2015-12-31 Filed 2016-02-19
10-Q 2015-09-30 Filed 2015-11-06
10-Q 2015-06-30 Filed 2015-08-07
10-Q 2015-03-31 Filed 2015-05-08
10-K 2014-12-31 Filed 2015-02-27
10-Q 2014-09-30 Filed 2014-11-07
10-Q 2014-06-30 Filed 2014-08-07
10-Q 2014-03-31 Filed 2014-05-09
10-K 2013-12-31 Filed 2014-02-28
10-Q 2013-09-30 Filed 2013-11-07
10-Q 2013-06-30 Filed 2013-08-09
10-Q 2013-03-31 Filed 2013-05-10
10-K 2012-12-31 Filed 2013-02-28
10-Q 2012-09-30 Filed 2012-11-05
10-Q 2012-06-30 Filed 2012-08-08
10-Q 2012-03-31 Filed 2012-05-10
10-K 2011-12-31 Filed 2012-02-29
10-Q 2011-09-30 Filed 2011-11-08
10-Q 2011-06-30 Filed 2011-08-05
10-Q 2011-03-31 Filed 2011-05-05
10-K 2010-12-31 Filed 2011-03-10
10-Q 2010-09-30 Filed 2010-11-08
10-Q 2010-06-30 Filed 2010-08-09
10-Q 2010-03-31 Filed 2010-05-07
10-K 2009-12-31 Filed 2010-03-11

OZK 10Q Quarterly Report

Part I. Financial Information
Item 1. Financial Statements
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
Item 3. Quantitative and Qualitative Disclosures About Market Risk
Item 4. Controls and Procedures
Part II. Other Information
Item 1. Legal Proceedings
Item 1A. Risk Factors
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Item 3. Defaults Upon Senior Securities
Item 4. Mine Safety Disclosures
Item 5. Other Information
Item 6. Exhibits
EX-12.1 ozrk-ex121_9.htm
EX-31.1 ozrk-ex311_10.htm
EX-31.2 ozrk-ex312_8.htm
EX-32.1 ozrk-ex321_7.htm
EX-32.2 ozrk-ex322_6.htm

Bank of The Ozarks Earnings 2017-03-31

Balance SheetIncome StatementCash Flow

10-Q 1 ozrk-10q_20170331.htm OZRK-10Q-20170331 ozrk-10q_20170331.htm

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

(Mark one)

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2017

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                      to                     .

Commission File Number 0-22759

 

BANK OF THE OZARKS, INC.

(Exact name of registrant as specified in its charter)

 

 

ARKANSAS

 

71-0556208

(State or other jurisdiction of

incorporation or organization)

 

(I.R.S. Employer

Identification Number)

 

17901 CHENAL PARKWAY, LITTLE ROCK, ARKANSAS

 

72223

(Address of principal executive offices)

 

(Zip Code)

Registrant’s telephone number, including area code: (501) 978-2265

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes      No  

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes      No  

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer

 

 

Accelerated filer

 

 

 

 

 

 

 

 

Non-accelerated filer (Do not check if a smaller reporting company)

 

 

 

 

 

 

 

 

 

 

 

Smaller reporting company

 

 

Emerging growth company

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.     

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes      No  

Indicate the number of shares outstanding of each of the registrant’s classes of common stock, as of the latest practical date.

 

 

Class

 

 

 

Outstanding at

April 30, 2017

 

Common Stock, $0.01 par value per share

 

121,577,177

 

 


BANK OF THE OZARKS, INC.

FORM 10-Q

March 31, 2017

INDEX

 

PART I.

 

Financial Information

 

 

 

 

 

 

 

Item 1.

 

Financial Statements

 

 

 

 

 

 

 

 

 

Consolidated Balance Sheets as of March 31, 2017 (Unaudited) and December 31, 2016

 

3

 

 

 

 

 

 

 

Consolidated Statements of Income for the Three Months Ended March 31, 2017 and 2016 (Unaudited)

 

4

 

 

 

 

 

 

 

Consolidated Statements of Comprehensive Income for the Three Months Ended March 31, 2017 and 2016 (Unaudited)

 

5

 

 

 

 

 

 

 

Consolidated Statements of Stockholders’ Equity for the Three Months Ended March 31, 2017 and 2016 (Unaudited)

 

6

 

 

 

 

 

 

 

Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2017 and 2016 (Unaudited)

 

7

 

 

 

 

 

 

 

Notes to Consolidated Financial Statements

 

8

 

 

 

 

 

Item 2.

 

Management’s Discussion and Analysis of Financial Condition and Results of Operations

 

30

 

 

 

 

 

Item 3.

 

Quantitative and Qualitative Disclosures About Market Risk

 

62

 

 

 

 

 

Item 4.

 

Controls and Procedures

 

63

 

 

 

 

 

PART II.

 

Other Information

 

 

 

 

 

 

 

Item 1.

 

Legal Proceedings

 

64

 

 

 

 

 

Item 1A.

 

Risk Factors

 

64

 

 

 

 

 

Item 2.

 

Unregistered Sales of Equity Securities and Use of Proceeds

 

64

 

 

 

 

 

Item 3.

 

Defaults Upon Senior Securities

 

64

 

 

 

 

 

Item 4.

 

Mine Safety Disclosures

 

64

 

 

 

 

 

Item 5.

 

Other Information

 

64

 

 

 

 

 

Item 6.

 

Exhibits

 

64

 

 

 

Signature

 

65

 

 

 

Exhibit Index

 

66

 

 

 


PART I. FINANCIAL INFORMATION

Item 1.

Financial Statements

BANK OF THE OZARKS, INC.

CONSOLIDATED BALANCE SHEETS

 

 

 

Unaudited

 

 

 

 

 

 

 

March 31,

 

 

December 31,

 

 

 

2017

 

 

2016

 

 

 

(Dollars in thousands, except per share amounts)

 

ASSETS

 

 

 

 

 

 

 

 

Cash and due from banks

 

$

892,085

 

 

$

814,255

 

Interest earning deposits

 

 

36,680

 

 

 

52,105

 

Cash and cash equivalents

 

 

928,765

 

 

 

866,360

 

Investment securities - available for sale (“AFS”)

 

 

1,470,568

 

 

 

1,471,612

 

Non-purchased loans and leases

 

 

10,216,875

 

 

 

9,605,093

 

Purchased loans

 

 

4,580,047

 

 

 

4,958,022

 

Allowance for loan and lease losses

 

 

(78,224

)

 

 

(76,541

)

Net loans and leases

 

 

14,718,698

 

 

 

14,486,574

 

Premises and equipment, net

 

 

506,520

 

 

 

504,086

 

Foreclosed assets

 

 

36,899

 

 

 

43,702

 

Accrued interest receivable

 

 

37,531

 

 

 

51,919

 

Bank owned life insurance (“BOLI”)

 

 

585,409

 

 

 

580,945

 

Intangible assets, net

 

 

718,475

 

 

 

720,950

 

Other, net

 

 

149,347

 

 

 

163,994

 

Total assets

 

$

19,152,212

 

 

$

18,890,142

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

Demand non-interest bearing

 

$

2,704,022

 

 

$

2,589,458

 

Savings and interest bearing transaction

 

 

8,179,718

 

 

 

8,048,355

 

Time

 

 

4,829,687

 

 

 

4,937,065

 

Total deposits

 

 

15,713,427

 

 

 

15,574,878

 

Repurchase agreements with customers

 

 

80,609

 

 

 

65,110

 

Other borrowings

 

 

42,291

 

 

 

41,903

 

Subordinated notes

 

 

222,611

 

 

 

222,516

 

Subordinated debentures

 

 

118,380

 

 

 

118,242

 

Accrued interest payable and other liabilities

 

 

98,290

 

 

 

72,622

 

Total liabilities

 

 

16,275,608

 

 

 

16,095,271

 

 

 

 

 

 

 

 

 

 

Commitments and contingencies

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stockholders’ equity:

 

 

 

 

 

 

 

 

Preferred stock; $0.01 par value; 1,000,000 shares authorized; no shares

   outstanding at March 31, 2017 or December 31, 2016

 

 

 

 

 

 

Common stock; $0.01 par value; 300,000,000 shares authorized;

    121,575,047  and 121,267,616 shares issued at March 31, 2017

    and December 31, 2016, respectively

 

 

1,216

 

 

 

1,213

 

Additional paid-in capital

 

 

1,907,893

 

 

 

1,901,880

 

Retained earnings

 

 

982,275

 

 

 

914,434

 

Accumulated other comprehensive income (loss)

 

 

(18,067

)

 

 

(25,920

)

Total stockholders’ equity before noncontrolling interest

 

 

2,873,317

 

 

 

2,791,607

 

Noncontrolling interest

 

 

3,287

 

 

 

3,264

 

Total stockholders’ equity

 

 

2,876,604

 

 

 

2,794,871

 

Total liabilities and stockholders’ equity

 

$

19,152,212

 

 

$

18,890,142

 

 

See accompanying notes to consolidated financial statements.

3


BANK OF THE OZARKS, INC.

CONSOLIDATED STATEMENTS OF INCOME

Unaudited

 

 

 

Three Months Ended

 

 

 

March 31,

 

 

 

2017

 

 

2016

 

 

 

(Dollars in thousands, except per share amounts)

 

Interest income:

 

 

 

 

 

 

 

 

Non-purchased loans and leases

 

$

127,428

 

 

$

87,010

 

Purchased loans

 

 

75,994

 

 

 

29,023

 

Investment securities:

 

 

 

 

 

 

 

 

Taxable

 

 

3,816

 

 

 

2,270

 

Tax-exempt

 

 

6,512

 

 

 

3,432

 

Deposits with banks and federal funds sold

 

 

20

 

 

 

6

 

Total interest income

 

 

213,770

 

 

 

121,741

 

 

 

 

 

 

 

 

 

 

Interest expense:

 

 

 

 

 

 

 

 

Deposits

 

 

18,378

 

 

 

7,850

 

Repurchase agreements with customers

 

 

30

 

 

 

19

 

Other borrowings

 

 

222

 

 

 

302

 

Subordinated notes

 

 

3,188

 

 

 

 

Subordinated debentures

 

 

1,181

 

 

 

1,053

 

Total interest expense

 

 

22,999

 

 

 

9,224

 

 

 

 

 

 

 

 

 

 

Net interest income

 

 

190,771

 

 

 

112,517

 

Provision for loan and lease losses

 

 

4,933

 

 

 

2,017

 

Net interest income after provision for loan and lease losses

 

 

185,838

 

 

 

110,500

 

 

 

 

 

 

 

 

 

 

Non-interest income:

 

 

 

 

 

 

 

 

Service charges on deposit accounts

 

 

11,301

 

 

 

7,657

 

Mortgage lending income

 

 

1,574

 

 

 

1,284

 

Trust income

 

 

1,631

 

 

 

1,507

 

BOLI income

 

 

4,464

 

 

 

2,861

 

Other income from purchased loans, net

 

 

3,737

 

 

 

3,052

 

Gains on sales of other assets

 

 

1,619

 

 

 

1,027

 

Other

 

 

4,732

 

 

 

2,477

 

Total non-interest income

 

 

29,058

 

 

 

19,865

 

 

 

 

 

 

 

 

 

 

Non-interest expense:

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

38,554

 

 

 

23,362

 

Net occupancy and equipment

 

 

13,192

 

 

 

8,531

 

Other operating expenses

 

 

26,522

 

 

 

15,793

 

Total non-interest expense

 

 

78,268

 

 

 

47,686

 

 

 

 

 

 

 

 

 

 

Income before taxes

 

 

136,628

 

 

 

82,679

 

Provision for income taxes

 

 

47,417

 

 

 

30,984

 

Net income

 

 

89,211

 

 

 

51,695

 

Earnings attributable to noncontrolling interest

 

 

(23

)

 

 

(7

)

Net income available to common stockholders

 

$

89,188

 

 

$

51,688

 

 

 

 

 

 

 

 

 

 

Basic earnings per common share

 

$

0.73

 

 

$

0.57

 

 

 

 

 

 

 

 

 

 

Diluted earnings per common share

 

$

0.73

 

 

$

0.57

 

 

 

 

 

 

 

 

 

 

Dividends declared per common share

 

$

0.17

 

 

$

0.15

 

 

See accompanying notes to consolidated financial statements.

4


BANK OF THE OZARKS, INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

Unaudited

 

 

 

Three Months Ended

 

 

 

March 31,

 

 

 

2017

 

 

2016

 

 

 

(Dollars in thousands)

 

Net income

 

$

89,211

 

 

$

51,695

 

Other comprehensive income:

 

 

 

 

 

 

 

 

Unrealized gains and losses on investment securities AFS

 

 

12,081

 

 

 

4,195

 

Tax effect of unrealized gains and losses on investment

   securities AFS

 

 

(4,228

)

 

 

(1,723

)

Reclassification of gains and losses on investment

   securities AFS included in net income

 

 

 

 

 

 

Tax effect of reclassification of gains and losses

   on investment securities AFS included in net income

 

 

 

 

 

 

Total other comprehensive income

 

 

7,853

 

 

 

2,472

 

Total comprehensive income

 

$

97,064

 

 

$

54,167

 

 

See accompanying notes to consolidated financial statements.

5


BANK OF THE OZARKS, INC.

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

Unaudited

 

 

 

Common

Stock

 

 

Additional

Paid-In

Capital

 

 

Retained

Earnings

 

 

Accumulated

Other

Comprehensive

Income (Loss)

 

 

Treasury

Stock

 

 

Non-

Controlling

Interest

 

 

Total

 

 

 

(Dollars in thousands, except per share amounts)

 

Balances – December 31, 2015

 

$

906

 

 

$

755,995

 

 

$

706,628

 

 

$

7,959

 

 

$

(6,857

)

 

$

3,163

 

 

$

1,467,794

 

Net income

 

 

 

 

 

 

 

 

51,695

 

 

 

 

 

 

 

 

 

 

 

 

51,695

 

Earnings attributable to noncontrolling interest

 

 

 

 

 

 

 

 

(7

)

 

 

 

 

 

 

 

 

7

 

 

 

 

Total other comprehensive income

 

 

 

 

 

 

 

 

 

 

 

2,472

 

 

 

 

 

 

 

 

 

2,472

 

Common stock dividends paid, $0.15 per share

 

 

 

 

 

 

 

 

(13,603

)

 

 

 

 

 

 

 

 

 

 

 

(13,603

)

Issuance of 27,200 shares of common stock

   for exercise of stock options

 

 

 

 

 

322

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

322

 

Issuance of 213,907 shares of unvested

   restricted common stock

 

 

1

 

 

 

(6,858

)

 

 

 

 

 

 

 

 

6,857

 

 

 

 

 

 

 

Excess tax benefit on exercise and forfeiture of

   stock options and restricted common stock

 

 

 

 

 

550

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

550

 

Stock-based compensation expense

 

 

 

 

 

2,020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2,020

 

Forfeiture of 5,804 shares of unvested

   restricted common stock

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balances – March 31, 2016

 

$

907

 

 

$

752,029

 

 

$

744,713

 

 

$

10,431

 

 

$

 

 

$

3,170

 

 

$

1,511,250

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balances – December 31, 2016

 

$

1,213

 

 

$

1,901,880

 

 

$

914,434

 

 

$

(25,920

)

 

$

 

 

$

3,264

 

 

$

2,794,871

 

Cumulative effect of change

   in accounting principal

 

 

 

 

 

1,133

 

 

 

(688

)

 

 

 

 

 

 

 

 

 

 

 

445

 

Balances – January 1, 2017, as adjusted

 

 

1,213

 

 

 

1,903,013

 

 

 

913,746

 

 

 

(25,920

)

 

 

 

 

 

3,264

 

 

 

2,795,316

 

Net income

 

 

 

 

 

 

 

 

89,211

 

 

 

 

 

 

 

 

 

 

 

 

89,211

 

Earnings attributable to noncontrolling interest

 

 

 

 

 

 

 

 

(23

)

 

 

 

 

 

 

 

 

23

 

 

 

 

Total other comprehensive income

 

 

 

 

 

 

 

 

 

 

 

7,853

 

 

 

 

 

 

 

 

 

7,853

 

Common stock dividends paid, $0.17 per share

 

 

 

 

 

 

 

 

(20,659

)

 

 

 

 

 

 

 

 

 

 

 

(20,659

)

Issuance of 69,655 shares of common

   stock for exercise of stock options

 

 

1

 

 

 

1,170

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,171

 

Issuance of 238,794 shares of unvested

   restricted common stock

 

 

2

 

 

 

(2

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation expense

 

 

 

 

 

3,712

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3,712

 

Forfeiture of 1,018 shares of unvested

   restricted common stock

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balances – March 31, 2017

 

$

1,216

 

 

$

1,907,893

 

 

$

982,275

 

 

$

(18,067

)

 

$

 

 

$

3,287

 

 

$

2,876,604

 

 

See accompanying notes to consolidated financial statements.

6


BANK OF THE OZARKS, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

Unaudited

 

 

 

Three Months Ended

 

 

 

March 31,

 

 

 

2017

 

 

2016

 

 

 

(Dollars in thousands)

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

Net income

 

$

89,211

 

 

$

51,695

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

 

 

 

 

Depreciation

 

 

5,027

 

 

 

2,970

 

Amortization

 

 

3,377

 

 

 

1,865

 

Earnings attributable to noncontrolling interest

 

 

(23

)

 

 

(7

)

Provision for loan and lease losses

 

 

4,933

 

 

 

2,017

 

Provision for losses on foreclosed assets

 

 

596

 

 

 

670

 

Net amortization of investment securities AFS

 

 

2,819

 

 

 

230

 

Originations of mortgage loans held for sale

 

 

(48,222

)

 

 

(47,322

)

Proceeds from sales of mortgage loans held for sale

 

 

56,041

 

 

 

45,059

 

Accretion of purchased loans

 

 

(20,619

)

 

 

(9,651

)

Gains on sales of other assets

 

 

(1,619

)

 

 

(1,027

)

Deferred income tax expense (benefits)

 

 

6,899

 

 

 

(1,921

)

Increase in cash surrender value of BOLI

 

 

(4,464

)

 

 

(2,861

)

Stock-based compensation expense

 

 

3,712

 

 

 

2,020

 

Excess tax benefit on stock-based compensation

 

 

 

 

 

(550

)

Changes in assets and liabilities:

 

 

 

 

 

 

 

 

Accrued interest receivable

 

 

14,388

 

 

 

(7,828

)

Other assets, net

 

 

5,939

 

 

 

(2,135

)

Accrued interest payable and other liabilities

 

 

24,036

 

 

 

12,091

 

Net cash provided by operating activities

 

 

142,031

 

 

 

45,315

 

Cash flows from investing activities:

 

 

 

 

 

 

 

 

Proceeds from maturities/calls/paydowns of investment securities AFS

 

 

32,188

 

 

 

58,176

 

Purchases of investment securities AFS

 

 

(21,882

)

 

 

(79,810

)

Net increase of non-purchased loans and leases

 

 

(546,734

)

 

 

(1,064,677

)

Net payments received on purchased loans

 

 

312,514

 

 

 

135,373

 

Purchases of premises and equipment

 

 

(7,465

)

 

 

(6,582

)

Purchases of BOLI

 

 

 

 

 

(42,000

)

Proceeds from sales of other assets

 

 

16,847

 

 

 

5,654

 

Cash (invested in) received from unconsolidated investments and noncontrolling interest

 

 

(42

)

 

 

223

 

Net cash used by investing activities

 

 

(214,574

)

 

 

(993,643

)

Cash flows from financing activities:

 

 

 

 

 

 

 

 

Net increase in deposits

 

 

138,549

 

 

 

1,655,357

 

Net proceeds from (repayments of) other borrowings

 

 

388

 

 

 

(162,608

)

Net increase in repurchase agreements with customers

 

 

15,499

 

 

 

83

 

Proceeds from exercise of stock options

 

 

1,171

 

 

 

322

 

Excess tax benefit on stock-based compensation

 

 

 

 

 

550

 

Cash dividends paid on common stock

 

 

(20,659

)

 

 

(13,603

)

Net cash provided by financing activities

 

 

134,948

 

 

 

1,480,101

 

Net increase in cash and cash equivalents

 

 

62,405

 

 

 

531,773

 

Cash and cash equivalents – beginning of period

 

 

866,360