During Q2 conference call, Bank of the Ozarks outlines 2007 initiatives
Bank of the Ozarks, Inc. (Nasdaq: OZRK) CEO George Gleason reported record second-quarter net income and outlined the Little Rock, Ark.-based bank’s plans for the future during a Friday afternoon conference call.
After investing in consumer initiatives, corporate growth and additional branch outlets in 2006, Gleason said the company has four major programs for 2007. First, Bank of the Ozarks wants to accelerate the growth rate of revenue. The company’s net interest income for 2007’s second quarter increased 7.3%.
Second, the bank is looking to decelerate the growth rate of non-interest expenses. For the second quarter ended June 30, the company recorded $11.8 million in non-interest expenses, compared with $11 million in the prior year’s period.
Third, the company wants to maintain or improve net interest margins. For the second quarter ended June 30, Bank of the Ozarks reported $8.08 million, or $0.48 per share, in net income, up 2% from $7.9 million, or $0.47 per share, in the same period of 2006.
“We are pleased to be reporting our second-quarter earnings and in our opinion, these results reflect good progress toward achieving a number of our goals in 2007,” Gleason said.
Fourth, Gleason said the bank wants to “maintain good asset quality.” During second-quarter 2007, the company’s return on average assets was down slightly at 1.27%, compared with 1.37% in 2006.
Growing earnings from loans and leases helped to propel the results, he said. Additionally, revenue from deposit account service charges increased 20.1% compared with second-quarter 2006. This was accomplished by enhancements made in applying and collecting charges, adjustments to the fee schedule and a large increase in deposit accounts due to the prior year’s initiatives.
Bank of the Ozarks, founded in 1981, operates 63 offices in locations in Arkansas, Texas and North Carolina.
In midday Friday trading, shares of Bank of the Ozarks climbed $1.67, or 5.90%, to $29.99. Over the last 52 weeks, the company’s shares have ranged between $34.90 and $26.61.
