-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, UEvOw2jU1iLd2hbikTgphXtsGpNhIMSjbFdTrqECq/eypZSXIMdpHIpcEc8KDUsF VQr8I1erui3N6GuGjF956A== 0001157523-05-008743.txt : 20051013 0001157523-05-008743.hdr.sgml : 20051013 20051012180020 ACCESSION NUMBER: 0001157523-05-008743 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20051012 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Regulation FD Disclosure ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20051013 DATE AS OF CHANGE: 20051012 FILER: COMPANY DATA: COMPANY CONFORMED NAME: BANK OF THE OZARKS INC CENTRAL INDEX KEY: 0001038205 STANDARD INDUSTRIAL CLASSIFICATION: STATE COMMERCIAL BANKS [6022] IRS NUMBER: 710556208 STATE OF INCORPORATION: AR FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 333-27641 FILM NUMBER: 051135781 BUSINESS ADDRESS: STREET 1: 12615 CHENAL PARKWAY STREET 2: SUITE 3100 CITY: LITTLE ROCK STATE: AR ZIP: 72211 BUSINESS PHONE: 5019782265 MAIL ADDRESS: STREET 1: 12615 CHENAL PARKWAY CITY: LITTLE ROCK STATE: AR ZIP: 72211 8-K 1 a4992902.txt BANK OF THE OZARKS, INC. 8-K UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of report (Date of earliest event reported) October 12, 2005 Bank of the Ozarks, Inc. (Exact name of registrant as specified in its charter) Arkansas (State or other jurisdiction of incorporation) 0-22759 71-0556208 (Commission File Number) (IRS Employer Identification No.) 12615 Chenal Parkway, Little Rock, Arkansas 72211 (Address of principal executive offices) (Zip Code) (501) 978-2265 (Registrant's telephone number, including area code) Not Applicable (Former Name or Former Address, if Changed Since Last Report) Check the appropriate box below if the form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below): ( ) Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) ( ) Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) ( ) Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) ( ) Pre-commencement communications pursuant to Rule 13c-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) - -------------------------------------------------------------------------------- 1 Item 2.02 Results of Operations and Financial Condition. The Registrant hereby furnishes its press release announcing Third Quarter 2005 Earnings Report which is attached hereto as Exhibit 99.1 and incorporated herein by reference. Item 7.01 Regulation FD Disclosure See Item 2.02. Results of Operations and Financial Condition Item 9.01 Financial Statements and Exhibits. (c) Exhibits 99.1 Press Release Announcing Third Quarter 2005 Earnings Report 2 SIGNA6TURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. BANK OF THE OZARKS, INC. ------------------------ (Registrant) Date: October 12, 2005 /s/ George G. Gleason ----------------------------------- George G. Gleason Chairman and Chief Executive Officer Exhibit No. Document Description 99.1 Press Release Announcing Third Quarter 2005 Earnings Report 3 EX-99.1 2 a4992902ex99-1.txt EXHIBIT 99.1 Exhibit 99.1 Bank of the Ozarks, Inc. Announces Record Third Quarter Earnings LITTLE ROCK, Ark.--(BUSINESS WIRE)--Oct. 12, 2005--Bank of the Ozarks, Inc. (NASDAQ:OZRK) today announced record earnings for the quarter ended September 30, 2005. Net income for the quarter was $8,071,000, a 21.4% increase over net income of $6,647,000 for the third quarter of 2004. Diluted earnings per share were $0.48 for the third quarter of 2005 compared to $0.40 for the third quarter of 2004, an increase of 20.0%. For the nine months ended September 30, 2005, net income totaled $23,106,000, a 22.4% increase over net income of $18,872,000 for the first nine months of 2004. Diluted earnings per share for the first nine months of 2005 were $1.38, compared to $1.14 for the comparable period in 2004, an increase of 21.1%. The Company's annualized returns on average assets and average stockholders' equity for the third quarter of 2005 were 1.65% and 22.62%, respectively, compared with 1.66% and 23.89%, respectively, for the third quarter of 2004. Annualized returns on average assets and average stockholders' equity for the nine months ended September 30, 2005 were 1.66% and 22.93%, respectively, compared with 1.68% and 23.98%, respectively, for the nine months ended September 30, 2004. Loans and leases were $1.33 billion at September 30, 2005 compared to $1.07 billion at September 30, 2004, an increase of 23.9%. Deposits were $1.49 billion at September 30, 2005 compared to $1.26 billion at September 30, 2004, an increase of 18.1%. Total assets were $2.02 billion at September 30, 2005, a 23.9% increase from $1.63 billion at September 30, 2004. Stockholders' equity was $143.1 million at September 30, 2005 compared to $115.2 million at September 30, 2004, an increase of 24.2%. Book value per share was $8.59 at September 30, 2005 compared to $7.01 at September 30, 2004, a 22.5% increase. The Company's ratio of common equity to assets was 7.08% as of September 30, 2005 compared to 7.07% as of September 30, 2004, and its ratio of tangible common equity to tangible assets was 6.79% as of September 30, 2005 compared to 6.68% as of September 30, 2004. In commenting on these results, George Gleason, Chairman and Chief Executive Officer, stated, "Record loan growth, excellent asset quality and a record efficiency ratio contributed to our favorable third quarter results and helped us achieve our 19th consecutive quarter of record net income and earnings per share. We have now reported record net income in 33 of the last 35 quarters. Total loans and leases grew a record $109 million in the quarter. Our September 30, 2005 ratios of nonperforming loans and leases, nonperforming assets and past due loans and leases were each the best we have reported in our eight years as a public company. Good revenue growth, combined with a focus on controlling overhead, resulted in a record efficiency ratio of 43.0% for the quarter." NET INTEREST INCOME Net interest income for the third quarter of 2005 increased 9.8% to $17,460,000 compared to $15,908,000 for the third quarter of 2004. The Company has now achieved 18 consecutive quarters of record net interest income. Net interest margin, on a fully taxable equivalent basis, was 4.19% in the quarter just ended compared to 4.47% in the third quarter of 2004, a decrease of 28 basis points. The Company's third quarter 2005 net interest margin of 4.19% reflected a decrease of three basis points from the second quarter's 4.22%. Net interest income for the nine months ended September 30, 2005 increased 13.9% to $50,731,000 compared with $44,548,000 for the nine months ended September 30, 2004. The Company's net interest margin for the first nine months of 2005 was 4.24%, a decrease of 22 basis points from 4.46% in the first nine months of 2004. The increase in the Company's net interest income in the third quarter and first nine months of 2005 is a result of growth in the Company's earning assets. A number of factors have contributed to the decline in the Company's net interest margin during 2005, including competitive pressures and the flattening yield curve between short and long term interest rates. NON-INTEREST INCOME Non-interest income for the third quarter of 2005 was $5,164,000 compared with $4,631,000 for the third quarter of 2004, an 11.5% increase. Non-interest income for the nine months ended September 30, 2005 was $14,448,000 compared to $13,828,000 for the nine months ended September 30, 2004, a 4.5% increase. The Company's third quarter 2005 income from service charges on deposit accounts was a record, increasing slightly from the previous record level set in the second quarter of 2005. Third quarter mortgage lending income improved from the level achieved in the comparable quarter of 2004 and the earlier quarters of 2005. This improvement was primarily a result of favorable housing market conditions. NON-INTEREST EXPENSE Non-interest expense for the third quarter of 2005 was $10,270,000 compared with $9,766,000 for the third quarter of 2004, an increase of 5.2%. The Company's efficiency ratio for the quarter ended September 30, 2005 improved to a record 43.0% compared to 46.1% for the third quarter of 2004. The Company has achieved a record efficiency ratio in each of the first three quarters of 2005. Non-interest expense for the first nine months of 2005 was $29,774,000 compared with $27,759,000 for the first nine months of 2004, an increase of 7.3%. The Company's efficiency ratio for the first nine months of 2005 was 43.6% compared to 46.1% for the first nine months of 2004. A number of factors contributed to the Company's growth in non-interest expense in the first nine months of 2005 compared to the first nine months of 2004, but the most significant was the Company's continued growth and expansion. From September 30, 2004 to September 30, 2005, the Company continued to pursue its growth and de novo branching strategy, resulting in the addition of seven new banking offices. The Company opened five new offices in the first half of 2005. In the third quarter, it completed an expansion of its Marshall, Arkansas office. In the fourth quarter of 2005, the Company expects to replace its initial temporary banking offices in Bentonville, Arkansas and Texarkana, Texas with permanent facilities and open its third Russellville, Arkansas banking office. ASSET QUALITY, CHARGE-OFFS AND RESERVES Nonperforming loans and leases as a percent of total loans and leases were 0.18% at September 30, 2005 compared to 0.27% as of September 30, 2004. Nonperforming assets as a percent of total assets were 0.13% as of September 30, 2005 compared to 0.23% as of September 30, 2004. The Company's ratio of loans and leases past due 30 days or more, including past due non-accrual loans and leases, to total loans and leases, was 0.38% at September 30, 2005 compared to 0.46% at September 30, 2004. The Company's annualized net charge-off ratio for the third quarter of 2005 was 0.20% compared to 0.10% for the third quarter of 2004. The Company's annualized net charge-off ratio for the first nine months of 2005 was 0.11% compared to 0.10% for the first nine months of 2004. Mr. Gleason stated, "Our third quarter asset quality ratios were outstanding. Our ratios of nonperforming assets as a percent of total assets, nonperforming loans and leases as a percent of total loans and leases and past due loans and leases as a percent of total loans and leases were the best we have achieved at the end of any quarter since becoming a public company in 1997. These record ratios reflect our significant emphasis on asset quality." The Company's allowance for loan and lease losses increased to $16.9 million at September 30, 2005, or 1.27% of total loans and leases, from $15.9 million, or 1.48% of total loans and leases, at September 30, 2004. The increase of $1.0 million in the allowance for loan and lease losses over the past twelve months is a result of the growth in the Company's loan and lease portfolio. As of September 30, 2005, the Company's allowance for loan and lease losses equaled 700% of its total nonperforming loans and leases. CONFERENCE CALL Management will conduct a conference call to review announcements made in this press release at 10:00 a.m. CDT (11:00 a.m. EDT) on Thursday, October 13, 2005. The call will be available live or in recorded version on the Company's website www.bankozarks.com under "Investor Relations" or interested parties calling from locations within the United States and Canada may call 1-800-990-4845 up to ten minutes prior to the beginning of the conference and ask for the Bank of the Ozarks conference call. A recorded playback of the entire call will be available on the Company's website or by telephone by calling 1-800-642-1687 in the United States and Canada or 706-645-9291 internationally. The passcode for this telephone playback is 1102387. The telephone playback will be available through October 31, 2005, and the website recording of the call will be available for 12 months. GENERAL This release contains forward looking statements regarding the Company's plans, expectations, goals and outlook for the future. Actual results may differ materially from those projected in such forward looking statements, due, among other things, to continued interest rate changes, competitive factors, general economic conditions and their effects on the creditworthiness of borrowers, collateral values and the value of securities, the ability to attract new deposits and loans, delays in identifying and acquiring satisfactory sites and opening new offices, delays in or inability to obtain required regulatory approvals, the ability to generate future revenue growth or to control future growth in non-interest expense, as well as other factors identified in this press release or in Management's Discussion and Analysis under the caption "Forward Looking Information" contained in the Company's 2004 Annual Report to Stockholders and the most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission. Bank of the Ozarks, Inc. trades on the NASDAQ National Market under the symbol "OZRK". The Company owns a state-chartered subsidiary bank that conducts banking operations through 53 offices in 29 communities throughout northern, western and central Arkansas, three Texas banking offices, and loan production offices in Little Rock, Arkansas and Charlotte, North Carolina. The Company may be contacted at (501) 978-2265 or P.O. Box 8811, Little Rock, Arkansas 72231-8811. The Company's website is: www.bankozarks.com. Bank of the Ozarks, Inc. Selected Consolidated Financial Data (Dollars in Thousands, Except Per Share Amounts) Unaudited Quarters Ended September 30, -------------------------------- 2005 2004 % Change ---------- ---------- --------- Income statement data: - ------------------------------------ Net interest income $ 17,460 $ 15,908 9.8% Provision for loan and lease losses 800 1,040 (23.1) Non-interest income 5,164 4,631 11.5 Non-interest expense 10,270 9,766 5.2 Net income 8,071 6,647 21.4 Common stock data: - ------------------------------------ Net income per share - diluted $ 0.48 $ 0.40 20.0% Net income per share - basic 0.48 0.41 17.1 Cash dividends per share 0.10 0.08 25.0 Book value per share 8.59 7.01 22.5 Diluted shares outstanding (thousands) 16,780 16,641 0.8 End of period shares outstanding (thousands) 16,653 16,430 1.4 Balance sheet data at period end: - ------------------------------------ Total assets $2,019,711 $1,630,096 23.9% Total loans and leases 1,330,724 1,073,754 23.9 Allowance for loan and lease losses 16,915 15,888 6.5 Total investment securities 514,299 433,716 18.6 Goodwill 5,243 5,243 - Other intangibles - net of amortization 1,224 1,512 (19.0) Total deposits 1,491,310 1,262,413 18.1 Repurchase agreements with customers 25,422 45,863 (44.6) Other borrowings 307,567 157,103 95.8 Subordinated debentures 44,331 44,331 - Stockholders' equity 143,082 115,225 24.2 Loan and lease to deposit ratio 89.23% 85.06% Selected ratios: - ------------------------------------ Return on average assets(a) 1.65% 1.66% Return on average stockholders' equity(a) 22.62 23.89 Average equity to total average assets 7.29 6.95 Net interest margin - FTE(a) 4.19 4.47 Overhead ratio(a) 2.10 2.44 Efficiency ratio 43.02 46.14 Allowance for loan and lease losses to total loans and leases 1.27 1.48 Nonperforming loans and leases to total loans and leases 0.18 0.27 Nonperforming assets to total assets 0.13 0.23 Net charge-offs to average loans and leases(a) 0.20 0.10 Other information: - ------------------------------------ Non-accrual loans and leases $ 2,416 $ 2,907 Accruing loans and leases - 90 days past due - - ORE and repossessions 271 882 Nine Months Ended September 30, -------------------------------- 2005 2004 % Change ---------- ---------- --------- Income statement data: - ------------------------------------ Net interest income $ 50,731 $ 44,548 13.9% Provision for loan and lease losses 1,800 2,830 (36.4) Non-interest income 14,448 13,828 4.5 Non-interest expense 29,774 27,759 7.3 Net income 23,106 18,872 22.4 Common stock data: - ------------------------------------ Net income per share - diluted $ 1.38 $ 1.14 21.1% Net income per share - basic 1.39 1.15 20.9 Cash dividends per share 0.27 0.22 22.7 Book value per share 8.59 7.01 22.5 Diluted shares outstanding (thousands) 16,759 16,614 0.9 End of period shares outstanding (thousands) 16,653 16,430 1.4 Balance sheet data at period end: - ------------------------------------ Total assets $2,019,711 $1,630,096 23.9% Total loans and leases 1,330,724 1,073,754 23.9 Allowance for loan and lease losses 16,915 15,888 6.5 Total investment securities 514,299 433,716 18.6 Goodwill 5,243 5,243 - Other intangibles - net of amortization 1,224 1,512 (19.0) Total deposits 1,491,310 1,262,413 18.1 Repurchase agreements with customers 25,422 45,863 (44.6) Other borrowings 307,567 157,103 95.8 Subordinated debentures 44,331 44,331 - Stockholders' equity 143,082 115,225 24.2 Loan and lease to deposit ratio 89.23% 85.06% Selected ratios: - ------------------------------------ Return on average assets(a) 1.66% 1.68% Return on average stockholders' equity(a) 22.93 23.98 Average equity to total average assets 7.25 6.99 Net interest margin - FTE(a) 4.24 4.46 Overhead ratio(a) 2.14 2.47 Efficiency ratio 43.60 46.13 Allowance for loan and lease losses to total loans and leases 1.27 1.48 Nonperforming loans and leases to total loans and leases 0.18 0.27 Nonperforming assets to total assets 0.13 0.23 Net charge-offs to average loans and leases(a) 0.11 0.10 Other information: - ------------------------------------ Non-accrual loans and leases $ 2,416 $ 2,907 Accruing loans and leases - 90 days past due - - ORE and repossessions 271 882 (a) Ratios annualized based on actual days Bank of the Ozarks, Inc. Supplemental Quarterly Financial Data (Dollars in Thousands, Except Per Share Amounts) Unaudited 12/31/03 3/31/04 6/30/04 9/30/04 --------- -------- -------- -------- Earnings Summary: - ------------------------------ Net interest income $ 13,469 $ 13,919 $ 14,721 $ 15,908 Federal tax (FTE) adjustment 479 591 582 625 --------- -------- -------- -------- Net interest income (FTE) 13,948 14,510 15,303 16,533 Loan and lease loss provision (970) (745) (1,045) (1,040) Non-interest income 4,128 3,993 5,204 4,631 Non-interest expense (8,855) (8,384) (9,610) (9,766) --------- -------- -------- -------- Pretax income (FTE) 8,251 9,374 9,852 10,358 FTE adjustment (479) (591) (582) (625) Provision for taxes (2,160) (2,818) (3,010) (3,086) --------- -------- -------- -------- Net income $ 5,612 $ 5,965 $ 6,260 $ 6,647 ========= ======== ======== ======== Earnings per share - diluted $ 0.34 $ 0.36 $ 0.38 $ 0.40 Non-interest Income: - ------------------------------ Trust income $ 523 $ 301 $ 358 $ 390 Service charges on deposit accounts 2,063 2,107 2,441 2,520 Mortgage lending income 922 815 985 863 Gain (loss) on sales of assets 8 100 20 108 Security gains (losses) 11 - 752 22 Bank owned life insurance income 258 253 254 258 Other 343 417 394 470 --------- -------- -------- -------- Total non-interest income $ 4,128 $ 3,993 $ 5,204 $ 4,631 Non-interest Expense: - ------------------------------ Salaries and employee benefits $ 4,697 $ 4,901 $ 5,023 $ 5,550 Net occupancy expense 1,152 1,213 1,254 1,286 Write-off of deferred debt costs - - 852 - Other operating expenses 2,944 2,208 2,416 2,865 Amortization of intangibles 62 62 65 65 --------- -------- -------- -------- Total non-interest expense $ 8,855 $ 8,384 $ 9,610 $ 9,766 Allowance for Loan and Lease Losses: - ------------------------------ Balance beginning of period $ 13,100 $ 13,820 $ 14,460 $ 15,113 Net charge-offs (250) (105) (392) (265) Loan and lease loss provision 970 745 1,045 1,040 --------- -------- -------- -------- Balance at end of period $ 13,820 $ 14,460 $ 15,113 $ 15,888 Selected Ratios: - ------------------------------ Net interest margin - FTE(b) 4.45% 4.48% 4.43% 4.47% Overhead expense ratio(b) 2.61 2.39 2.57 2.44 Efficiency ratio 48.99 45.31 46.86 46.14 Nonperforming loans and leases/total loans and leases 0.47 0.36 0.25 0.27 Nonperforming assets/total assets 0.36 0.28 0.21 0.23 Loans and leases past due 30 days or more, including past due non-accrual loans and leases, to total loans and leases 0.77 0.46 0.44 0.46 12/31/04 3/31/05 6/30/05 9/30/05 --------- -------- -------- -------- Earnings Summary: - ----------------------------- Net interest income $ 16,075 $ 16,459 $ 16,811 $ 17,460 Federal tax (FTE) adjustment 702 767 1,095 1,247 --------- -------- -------- -------- Net interest income (FTE) 16,777 17,226 17,906 18,707 Loan and lease loss provision (500) (500) (500) (800) Non-interest income 4,397 4,371 4,913 5,164 Non-interest expense (9,845) (9,495) (10,008) (10,270) --------- -------- -------- -------- Pretax income (FTE) 10,829 11,602 12,311 12,801 FTE adjustment (702) (767) (1,095) (1,247) Provision for taxes (3,116) (3,513) (3,503) (3,483) --------- -------- -------- -------- Net income $ 7,011 $ 7,322 $ 7,713 $ 8,071 ========= ======== ======== ======== Earnings per share - diluted $ 0.42 $ 0.44 $ 0.46 $ 0.48 Non-interest Income: - ----------------------------- Trust income $ 427 $ 389 $ 394 $ 448 Service charges on deposit accounts 2,411 2,204 2,564 2,570 Mortgage lending income 629 671 712 888 Gain (loss) on sales of assets 13 131 335 33 Security gains (losses) - - - 211 Bank owned life insurance income 448 449 455 465 Other 469 527 453 549 --------- -------- -------- -------- Total non-interest income $ 4,397 $ 4,371 $ 4,913 $ 5,164 Non-interest Expense: - ----------------------------- Salaries and employee benefits $ 5,358 $ 5,445 $ 5,866 $ 6,221 Net occupancy expense 1,436 1,447 1,502 1,632 Write-off of deferred debt costs - - - - Other operating expenses 2,985 2,538 2,574 2,351 Amortization of intangibles 66 65 66 66 --------- -------- -------- -------- Total non-interest expense $ 9,845 $ 9,495 $ 10,008 $ 10,270 Allowance for Loan and Lease Losses: - ----------------------------- Balance beginning of period $ 15,888 $ 16,133 $ 16,437 $ 16,745 Net charge-offs (255) (196) (192) (630) Loan and lease loss provision 500 500 500 800 --------- -------- -------- -------- Balance at end of period $ 16,133 $ 16,437 $ 16,745 $ 16,915 Selected Ratios: - ----------------------------- Net interest margin - FTE(b) 4.34% 4.33% 4.22% 4.19% Overhead expense ratio(b) 2.33 2.18 2.15 2.10 Efficiency ratio 46.50 43.96 43.86 43.02 Nonperforming loans and leases/total loans and leases 0.57 0.36 0.26 0.18 Nonperforming assets/total assets 0.39 0.39 0.21 0.13 Loans and leases past due 30 days or more, including past due non-accrual loans and leases, to total loans and leases 0.76 0.49 0.45 0.38 (b) Annualized Bank of the Ozarks, Inc. Average Consolidated Balance Sheet and Net Interest Analysis (Dollars in Thousands) Unaudited Quarter Ended September 30, 2005 --------------------------- Average Income/ Yield/ Balance Expense Rate ----------- -------- ------ ASSETS Earnings assets: Interest earning deposits and federal funds sold $ 326 $ 2 1.99% Investment securities: Taxable 303,997 4,026 5.25 Tax-exempt - FTE 203,209 3,491 6.82 Loans and leases - FTE 1,265,588 22,951 7.19 ---------- ------- Total earnings assets 1,773,120 30,470 6.82 Non-earning assets 167,897 ---------- Total assets $1,941,017 ========== LIABILITIES AND STOCKHOLDERS' EQUITY Interest bearing liabilities: Deposits: Savings and interest bearing transaction $ 465,150 1,789 1.53% Time deposits of $100,000 or more 543,546 4,334 3.16 Other time deposits 308,377 2,181 2.81 ---------- ------- Total interest bearing deposits 1,317,073 8,304 2.50 Repurchase agreements with customers 23,139 97 1.66 Other borrowings 266,490 2,661 3.96 Subordinated debentures 44,331 701 6.27 ---------- ------- Total interest bearing liabilities 1,651,033 11,763 2.83 Non-interest bearing liabilities: Non-interest bearing deposits 138,914 Other non-interest bearing liabilities 9,522 ---------- Total liabilities 1,799,469 Stockholders' equity 141,548 ---------- Total liabilities and stockholders' equity $1,941,017 ========== Interest rate spread - FTE 3.99% ------- Net interest income - FTE $18,707 ======= Net interest margin - FTE 4.19% Nine Months Ended September 30, 2005 --------------------------- Average Income/ Yield/ Balance Expense Rate ----------- -------- ------ ASSETS Earnings assets: Interest earning deposits and federal funds sold $ 367 $ 9 3.45% Investment securities: Taxable 317,135 12,644 5.33 Tax-exempt - FTE 168,518 8,671 6.88 Loans and leases - FTE 1,210,096 62,619 6.92 ---------- ------- Total earnings assets 1,696,116 83,943 6.62 Non-earning assets 162,029 ---------- Total assets $1,858,145 ========== LIABILITIES AND STOCKHOLDERS' EQUITY Interest bearing liabilities: Deposits: Savings and interest bearing transaction $ 456,076 $ 4,757 1.39% Time deposits of $100,000 or more 528,918 10,999 2.78 Other time deposits 294,793 5,638 2.56 ---------- ------- Total interest bearing deposits 1,279,787 21,394 2.24 Repurchase agreements with customers 26,689 310 1.55 Other borrowings 230,219 6,471 3.76 Subordinated debentures 44,331 1,929 5.82 ---------- ------- Total interest bearing liabilities 1,581,026 30,104 2.55 Non-interest bearing liabilities: Non-interest bearing deposits 135,708 Other non-interest bearing liabilities 6,696 ---------- Total liabilities 1,723,430 Stockholders' equity 134,715 ---------- Total liabilities and stockholders' equity $1,858,145 ========== Interest rate spread - FTE 4.07% ------- Net interest income - FTE $53,839 ======= Net interest margin - FTE 4.24% CONTACT: Bank of the Ozarks Inc., Little Rock Susan Blair, 501-978-2217 -----END PRIVACY-ENHANCED MESSAGE-----