Bank of the Ozarks in Little Rock, Ark., reported record profits in the third quarter thanks largely to a surge in new loan originations.
The $21 billion-asset company said Wednesday that its net income in the quarter climbed 26% from the same period in 2016 to $96 million. Earnings per share of 75 cents came in a penny higher than the average of analysts’ estimates compiled by FactSet Research Systems.
“We are pleased to report another quarter of great results, including record net income for the eighth consecutive quarter, record diluted earnings per share, excellent asset quality and growth of $1.02 billion in non-purchased loans and leases,” Chairman and CEO George Gleason said in a news release.
Total loans and leases rose 11% to $15.8 billion. Loans and leases originated by Bank of the Ozarks increased 38% to $12.1 billion. Deposits rose 11% to $16.8 billion.
Net interest income rose 20% to $210 million. Bank of the Ozarks' credit quality remained pristine, as net chargeoffs to average nonpurchased loans and leases rose just 2 basis points to 0.08%. The company increased its provision for loan losses by 10% to $7.8 million.
Noninterest income increased 12% to $33 million. The results included $2.4 million of gains on investment securities.
Noninterest expenses rose 7% to $84 million. The efficiency ratio improved to 34.38%.
Bank of the Ozarks, which dissolved its bank holding company in June and no longer files financial statements with the Securities and Exchange Commission, did not provide a breakout of figures by loan category, such as commercial real estate.