Bank OZK reports record quarterly earnings, revenue growth of 7%

Little Rock-based Bank OZK on Wednesday (July 17) reported record second-quarter net income of $173.496 million, with net income per share of $1.52 matching consensus estimates. The regional bank warned that loan growth would slow in 2024.

Second-quarter revenue was 3.3% higher than $167.917 million in the same quarter of 2023. Revenue – interest income and non-interest income – totaled $416.276 million in the quarter, up from $388.811 million in the same quarter of 2023 and slightly above the consensus estimate of $414.39 million.

The bank reported that its net income before tax and provisions amounted to $279.325 million in the quarter, up from $259.456 million in the same quarter of 2023.

“We are very pleased with our record results for the quarter just ended, which delivered our seventh consecutive quarter of record net income and earnings per share and our eighth consecutive quarter of record net interest income. This record performance enabled us to consistently increase dividends, significantly increase capital and opportunistically repurchase shares, all while nearly doubling our allowance for credit losses,” the company noted in a management report released alongside the earnings report.

Net income in the first half of the year was $344.987 million, up from $33.771 million in the same period of 2023. Revenue in the first six months was $1.362 billion, also up from $1.016 billion in the same period of 2023. The bank’s total provision for credit losses was $574.1 million as of June 30, up from $426.8 million as of June 30, 2023.

Representatives of the banking sector predict that the growth of loans, which are a key source of income for every bank, will be lower than in 2023.

“While we expect continued strong loan growth in the remainder of 2024, we believe full-year 2024 loan growth will likely be lower than the $5.68 billion achieved in 2023. Loan growth can vary significantly from quarter to quarter and could be impacted by interest rates, economic conditions, competition or other factors,” the company noted.

Other financial items from the quarterly report are presented below.
• Total assets as of June 30 reached $36.836 billion, up from $30.761 billion in the same period in 2023.

• Total loans outstanding as of June 30 were $28.67 billion, up from $23.61 billion in the same period in 2023.

• Total deposits as of June 30 were $29.943 billion, up from $23.983 billion during the same period in 2023.

• The return on assets as of June 30 was 1.94%, down from 2.34% in the same period in 2023.

Founded in 1903, Bank OZK conducts banking business and has more than 240 offices in Arkansas, California, Florida, Georgia, Mississippi, New York, North Carolina and Texas. Bank OZK (NASDAQ: OZK) shares closed Wednesday at $46.92, up 40 cents. The stock has traded between $34.76 and $52.36 over the past 52 weeks.

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