Bank of the Ozarks (OZRK) posted a 16% rise in quarterly profit after completing an acquisition and reporting strong loan growth.
The $4.7 billion-asset company reported on Thursday a $22.4 million third-quarter profit, up from $19.3 million a year earlier. Earnings per share of 61 cents beat the estimates of analysts polled by Bloomberg by a penny.
Bank of the Ozarks' net interest income rose 14%, to $44.4 million, as its loan portfolio grew by 24%, to $2.5 billion. The increase in loans was largely due to the company's acquisition of First National Bank of Shelby in North Carolina, which closed in July. The deal added about $857 million in assets to Bank of the Ozarks. However, the company's net interest margin fell 42 basis points, to 5.55%.
The company's noninterest income increased by 24%, to $18 million, partly from higher revenue on service charges and asset sales. Expenses rose 12%, to $32.2 million, as the Shelby merger added $1.4 million of pretax closing and conversion costs for the quarter.
Bank of the Ozarks' net chargeoffs fell almost 55%, to $1.5 million, while its provision for loan losses ticked up more than 22%, to $3.8 million.
Bank of the Ozarks named Tyler Vance as its chief operating officer in August after Mark Ross, who had been with the company for more than 30 years, said he would retire.