Bank of the Ozarks in Little Rock, Ark., reported higher quarterly earnings that reflected a pair of bank acquisitions it completed in the second half of last year.

The $20 billion-asset bank said in a press release Wednesday that its second-quarter profit rose 66% from a year earlier, to $90.5 million, or 73 cents a share. The increase reflected Bank of the Ozarks’ July 2016 purchases of C1 Financial in Tampa, Fla., and Community & Southern Holdings in Atlanta.

Bank of the Ozarks CEO George Gleason.
Bank of the Ozarks, led by Chairman and CEO George Gleason, has been an active acquirer in recent years. The bank also decided to get rid of its holding company to become more efficient.

Earnings rose by 1.5% from the first quarter.

Net interest income rose 70% from a year earlier to $202.1 million. Total loans increased by 56% to $15.2 billion, while the net interest margin widened by 17 basis points to 4.99%.

Noninterest income went up 40.1% to $31.84 million. Service charges increased by 46% and mortgage income fell slightly.

Noninterest expenses increased by 65% to $83.8 million, reflecting the acquisitions. The bank’s efficiency ratio at June 30 was 35.3%. Bank of the Ozarks recently dissolved its holding company in an effort to improve efficiency.

The bank’s loan-loss provision increased by 26% to $6.1 million.

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