EX-99.1 2 a5310061ex991.txt EXHIBIT 99.1 Exhibit 99.1 Bank of the Ozarks, Inc. Announces Fourth Quarter and Full Year 2006 Earnings LITTLE ROCK, Ark.--(BUSINESS WIRE)--Jan. 16, 2007--Bank of the Ozarks, Inc. (NASDAQ: OZRK) today announced earnings for the fourth quarter and year ended December 31, 2006. Net income for 2006 totaled $31,693,000, a 0.6% increase over net income of $31,489,000 for 2005. Diluted earnings per share were $1.89 for 2006 compared to $1.88 for 2005, an increase of 0.5%. For the quarter ended December 31, 2006, net income totaled $7,355,000, a 12.3% decrease from net income of $8,383,000 for the fourth quarter of 2005. Diluted earnings per share for the fourth quarter of 2006 were $0.44, compared to $0.50 for the same period in 2005, a decrease of 12.0%. The Company's returns on average assets and average stockholders' equity for 2006 were 1.34% and 20.03%, respectively, compared to 1.65% and 22.95%, respectively, for 2005. Annualized returns on average assets and average stockholders' equity for the fourth quarter of 2006 were 1.17% and 16.97%, respectively, compared to 1.60% and 23.01%, respectively, for the fourth quarter of 2005. Loans and leases were $1.68 billion at December 31, 2006 compared to $1.37 billion at December 31, 2005, an increase of 22.4%. The Company's $307 million of loan and lease growth during 2006 was its largest ever annual loan and lease growth. This growth occurred in both the Company's more established markets and the four newer markets in which the Company expanded in 2006. As part of the Company's 2006 corporate growth initiative, the Company broadened its loan origination capabilities by developing new lending teams focused on professional and executive lending and commercial and industrial lending. Deposits were $2.05 billion at December 31, 2006 compared to $1.59 billion at December 31, 2005, an increase of 28.5%. The Company's $453 million of deposit growth in 2006 was its largest ever annual deposit growth. In addition the Company's number of deposit accounts grew by 85% more in 2006 than they grew in 2005. These results are due in large part to the deposit initiative which the Company pursued during 2006 in order to both grow and diversify its deposit sources. Total assets were $2.53 billion at December 31, 2006, an 18.5% increase from $2.13 billion at December 31, 2005. Stockholders' equity was $175 million at December 31, 2006 compared to $149 million at December 31, 2005, an increase of 16.9%. Book value per share was $10.43 at December 31, 2006 compared to $8.97 at December 31, 2005, a 16.3% increase. The Company's ratio of common equity to assets was 6.90% as of December 31, 2006 compared to 7.00% as of December 31, 2005, and its ratio of tangible common equity to tangible assets was 6.68% as of December 31, 2006 compared to 6.72% as of December 31, 2005. In commenting on these results, George Gleason, Chairman and Chief Executive Officer, stated, "Throughout 2006 we pursued three major initiatives intended to position us for continued long-term growth. These initiatives included a record number of new banking offices, significant development of corporate infrastructure and staff, and aggressive deposit growth. While these initiatives resulted in increased overhead and interest expense in 2006, we believe they also provide an excellent foundation for the future. In fact, much of what we did in 2006 was aimed at achieving long-term goals. With our 2006 initiatives accomplished, our priorities for 2007 will include goals to accelerate our rate of revenue growth and decelerate our rate of overhead growth." NET INTEREST INCOME Net interest income for 2006 increased 3.1% to $70,720,000 compared to $68,576,000 for 2005. Net interest margin, on a fully taxable equivalent basis, was 3.49% in 2006 compared to 4.18% in 2005, a decrease of 69 basis points. Net interest income for the fourth quarter of 2006 decreased 1.8% to $17,523,000 compared to $17,845,000 for the fourth quarter of 2005. The Company's net interest margin, on a fully taxable equivalent basis, was 3.22% in the fourth quarter of 2006, compared to 4.02% in the fourth quarter of 2005, a decrease of 80 basis points. The yield curve between short-term and long-term interest rates was essentially flat or inverted throughout 2006. This situation, along with challenging competitive conditions and the Company's decision to aggressively pursue and price deposits in 2006, contributed to the decline in the Company's net interest margin in 2006. The Company experienced strong growth in earning assets in 2006, as loans increased 22.4% and investment securities increased 8.0% from year-end 2005 to year-end 2006. The impact on net interest income from this substantial growth in earning assets was largely offset by the decline in net interest margin, resulting in net interest income increasing only 3.1% in 2006 compared to 2005. Mr. Gleason stated, "Despite the continuing inversion of the yield curve between short-term and long-term interest rates and intense competitive conditions, we are cautiously optimistic that in 2007 our net interest margin will stabilize at or near the level achieved in the fourth quarter of 2006 and may improve as 2007 progresses. One of our goals in 2007 is to continue to achieve strong growth in earning assets, primarily loans and leases." NON-INTEREST INCOME Non-interest income for 2006 was $23,231,000 compared with $19,252,000 for 2005, a 20.7% increase. Non-interest income for the fourth quarter of 2006 was $6,434,000 compared with $4,804,000 for the fourth quarter of 2005, a 33.9% increase. Service charges on deposit accounts are traditionally the Company's largest source of non-interest income and increased 3.5% to an annual record of $10,217,000 in 2006 compared to $9,875,000 in 2005. For the fourth quarter of 2006, service charges on deposit accounts were a quarterly record of $2,768,000, a 9.1% increase compared to $2,537,000 in the fourth quarter of 2005. Mortgage lending income decreased 3.8% to $2,918,000 in 2006 compared to $3,034,000 in 2005. For the fourth quarter of 2006, mortgage lending income was $744,000, a 2.5% decrease compared to $763,000 in the fourth quarter of 2005. Trust income for 2006 was an annual record of $1,947,000, a 16.4% increase from $1,673,000 in 2005. For the fourth quarter of 2006, trust income was a quarterly record of $550,000, a 24.4% increase compared to $442,000 in the fourth quarter of 2005. Net gains from sales of investment securities and other assets were $3,827,000 in 2006 compared to $780,000 in 2005. For the fourth quarter of 2006, net gains from sales of investment securities and other assets were $1,196,000 compared to $71,000 in the fourth quarter of 2005. The Company's investment securities portfolio has traditionally been both a strong contributor of earning assets and a source of collateral for customer repurchase agreements and trust and public funds deposits. In 2006 gains from sales of investment securities also provided a significant contribution to the Company's non-interest income. NON-INTEREST EXPENSE Non-interest expense for 2006 was $46,390,000 compared to $40,080,000 for 2005, an increase of 15.7%. The Company's efficiency ratio for 2006 was 47.1% compared to 43.4% for 2005. Non-interest expense for the fourth quarter of 2006 was $12,506,000 compared to $10,306,000 for the fourth quarter of 2005, an increase of 21.3%. The Company's efficiency ratio for the fourth quarter of 2006 was 50.3% compared to 42.9% for the fourth quarter of 2005. A number of factors contributed to the Company's growth in non-interest expense in the fourth quarter and full year of 2006 compared to the fourth quarter and full year of 2005. The most significant were the Company's initiatives to open a record number of new banking offices and to develop corporate infrastructure and staff to prepare for future growth. During 2006 the Company continued to pursue its growth and de novo branching strategy, resulting in the addition of a record 11 new banking offices. Additionally, the Company replaced one temporary office and one of its oldest offices with new banking facilities and established a loan production office in Tulsa, Oklahoma. Four of these new banking offices and one of the replacement banking offices were opened during the fourth quarter of 2006. The 11 new banking offices added in 2006 expanded the Company's presence in four important new markets. These markets include northwest Arkansas (Benton and Washington counties); Hot Springs in Garland County, Arkansas; the Texarkana market (both Bowie County, Texas and Miller County, Arkansas); and Frisco, Texas. The Company expects to continue its growth and de novo branching strategy, although at a much slower pace in 2007. The Company has reduced its previous plans for 2007 office additions, and now expects to replace one temporary banking office with a new permanent facility and open approximately five new banking offices in 2007. One of these new banking offices is expected to replace its current Oklahoma loan production office. Opening new offices and replacing existing temporary offices with permanent facilities are subject to availability of suitable sites, designing, constructing, equipping and staffing such offices, obtaining regulatory and other approvals, and many other conditions and contingencies that the Company cannot accurately predict with certainty. ASSET QUALITY, CHARGE-OFFS AND RESERVES Nonperforming loans and leases as a percent of total loans and leases were 0.34% at year-end 2006 compared to 0.25% as of year-end 2005. Nonperforming assets as a percent of total assets were 0.24% as of year-end 2006 compared to 0.18% as of year-end 2005. 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 0.60% at year-end 2006 compared to 0.39% at year-end 2005. The Company's net charge-off ratio for 2006 was 0.12% compared to 0.11% in 2005. Its annualized net charge-off ratio for the fourth quarter of 2006 was 0.13% compared to 0.12% for the fourth quarter of 2005. The Company's allowance for loan and lease losses increased to $17.7 million at December 31, 2006, or 1.06% of total loans and leases, from $17.0 million, or 1.24% of total loans and leases, at December 31, 2005. The $0.7 million increase in the allowance for loan and lease losses in 2006 is primarily a result of growth in the Company's loan and lease portfolio. As of December 31, 2006, the Company's allowance for loan and lease losses equaled 310% 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. CST (11:00 a.m. EST) on Wednesday, January 17, 2007. 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 5712031. The telephone playback will be available through January 31, 2007, 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, including the Company's goals to accelerate its rate of revenue growth and decelerate its rate of overhead growth, the Company's goals and expectations for net interest margin, growth in earning assets, growth in loans and leases, continuation of its growth and de novo branching strategy, plans to replace a temporary banking office with a new permanent facility and plans to open approximately five new banking offices, including replacing a loan production office with a permanent banking facility. Actual results may differ materially from those projected in such forward looking statements, due to, among other things, continued interest rate changes including changes in the shape of the yield curve, competitive factors, general economic conditions and their effects on the creditworthiness of borrowers, collateral values and the value of investment securities, the ability to attract new deposits and loans and leases, 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 2005 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 Global Select Market under the symbol "OZRK". The Company owns a state-chartered subsidiary bank that conducts banking operations through 62 offices in 34 communities throughout northern, western and central Arkansas, five Texas banking offices, and loan production offices in Little Rock, Arkansas, Charlotte, North Carolina and Tulsa, Oklahoma. 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 December 31, -------------------------------- 2006 2005 % Change -------------------------------- Income statement data: -------------------------------------- Net interest income $ 17,523 $ 17,845 (1.8)% Provision for loan and lease losses 900 500 80.0 Non-interest income 6,434 4,804 33.9 Non-interest expense 12,506 10,306 21.3 Net income 7,355 8,383 (12.3) Common stock data: -------------------------------------- Net income per share - diluted $ 0.44 $ 0.50 (12.0)% Net income per share - basic 0.44 0.50 (12.0) Cash dividends per share 0.10 0.10 - Book value per share 10.43 8.97 16.3 Diluted shares outstanding (thousands) 16,819 16,793 End of period shares outstanding (thousands) 16,747 16,665 Balance sheet data at period end: -------------------------------------- Total assets $2,529,400 $2,134,882 18.5% Total loans and leases 1,677,389 1,370,723 22.4 Allowance for loan and lease losses 17,699 17,007 4.1 Total investment securities 620,132 574,120 8.0 Goodwill 5,243 5,243 - Other intangibles - net of amortization 897 1,159 (22.6) Total deposits 2,045,092 1,591,643 28.5 Repurchase agreements with customers 41,001 35,671 14.9 Other borrowings 194,661 304,865 (36.1) Subordinated debentures 64,950 44,331 46.5 Stockholders' equity 174,633 149,403 16.9 Loan and lease to deposit ratio 82.02% 86.12% Selected ratios: -------------------------------------- Return on average assets(a) 1.17% 1.60% Return on average stockholders' equity(a) 16.97 23.01 Average equity to total average assets 6.90 6.96 Net interest margin - FTE(a) 3.22 4.02 Overhead ratio(a) 1.99 1.97 Efficiency ratio 50.29 42.93 Allowance for loan and lease losses to total loans and leases 1.06 1.24 Nonperforming loans and leases to total loans and leases 0.34 0.25 Nonperforming assets to total assets 0.24 0.18 Net charge-offs to average loans and leases(a) 0.13 0.12 Other information: -------------------------------------- Non-accrual loans and leases $ 5,713 $ 3,385 Accruing loans and leases - 90 days past due - - ORE and repossessions 407 356 Years Ended December 31, ------------------------------- 2006 2005 % Change ------------------------------- Income statement data: ------------------------------------- Net interest income $ 70,720 $ 68,576 3.1% Provision for loan and lease losses 2,450 2,300 6.5 Non-interest income 23,231 19,252 20.7 Non-interest expense 46,390 40,080 15.7 Net income 31,693 31,489 0.6 Common stock data: ------------------------------------- Net income per share - diluted $ 1.89 $ 1.88 0.5% Net income per share - basic 1.90 1.89 0.5 Cash dividends per share 0.40 0.37 8.1 Book value per share 10.43 8.97 16.3 Diluted shares outstanding (thousands) 16,803 16,766 End of period shares outstanding (thousands) 16,747 16,665 Balance sheet data at period end: ------------------------------------- Total assets $2,529,400 $2,134,882 18.5% Total loans and leases 1,677,389 1,370,723 22.4 Allowance for loan and lease losses 17,699 17,007 4.1 Total investment securities 620,132 574,120 8.0 Goodwill 5,243 5,243 - Other intangibles - net of amortization 897 1,159 (22.6) Total deposits 2,045,092 1,591,643 28.5 Repurchase agreements with customers 41,001 35,671 14.9 Other borrowings 194,661 304,865 (36.1) Subordinated debentures 64,950 44,331 46.5 Stockholders' equity 174,633 149,403 16.9 Loan and lease to deposit ratio 82.02% 86.12% Selected ratios: ------------------------------------- Return on average assets(a) 1.34% 1.65% Return on average stockholders' equity(a) 20.03 22.95 Average equity to total average assets 6.69 7.17 Net interest margin - FTE(a) 3.49 4.18 Overhead ratio(a) 1.96 2.10 Efficiency ratio 47.07 43.43 Allowance for loan and lease losses to total loans and leases 1.06 1.24 Nonperforming loans and leases to total loans and leases 0.34 0.25 Nonperforming assets to total assets 0.24 0.18 Net charge-offs to average loans and leases(a) 0.12 0.11 Other information: ------------------------------------- Non-accrual loans and leases $ 5,713 $ 3,385 Accruing loans and leases - 90 days past due - - ORE and repossessions 407 356 (a) Ratios for interim periods annualized based on actual days Bank of the Ozarks, Inc. Supplemental Quarterly Financial Data (Dollars in Thousands, Except Per Share Amounts) Unaudited 3/31/05 6/30/05 9/30/05 12/31/05 --------- --------- --------- ---------- Earnings Summary: ---------------------------- Net interest income $ 16,459 $ 16,811 $ 17,460 $ 17,845 Federal tax (FTE) adjustment 767 1,095 1,247 1,357 --------- --------- --------- ---------- Net interest income (FTE) 17,226 17,906 18,707 19,202 Provision for loan and lease losses (500) (500) (800) (500) Non-interest income 4,371 4,913 5,164 4,804 Non-interest expense (9,495) (10,008) (10,270) (10,306) --------- --------- --------- ---------- Pretax income (FTE) 11,602 12,311 12,801 13,200 FTE adjustment (767) (1,095) (1,247) (1,357) Provision for income taxes (3,513) (3,503) (3,483) (3,460) --------- --------- --------- ---------- Net income $ 7,322 $ 7,713 $ 8,071 $ 8,383 ========= ========= ========= ========== Earnings per share - diluted $ 0.44 $ 0.46 $ 0.48 $ 0.50 Non-interest Income: ---------------------------- Service charges on deposit accounts $ 2,204 $ 2,564 $ 2,570 $ 2,537 Mortgage lending income 671 712 888 763 Trust income 389 394 448 442 Bank owned life insurance income 449 455 465 446 Gains on sales of investment securities - - 211 3 Gains (losses) on sales of other assets 131 335 33 68 Other 527 453 549 545 --------- --------- --------- ---------- Total non-interest income $ 4,371 $ 4,913 $ 5,164 $ 4,804 Non-interest Expense: ---------------------------- Salaries and employee benefits $ 5,445 $ 5,866 $ 6,221 $ 5,945 Net occupancy expense 1,447 1,502 1,632 1,673 Other operating expenses 2,538 2,574 2,351 2,622 Amortization of intangibles 65 66 66 66 --------- --------- --------- ---------- Total non-interest expense $ 9,495 $ 10,008 $ 10,270 $ 10,306 Allowance for Loan and Lease Losses: ---------------------------- Balance at beginning of period $ 16,133 $ 16,437 $ 16,745 $ 16,915 Net charge-offs (196) (192) (630) (408) Provision for loan and lease losses 500 500 800 500 --------- --------- --------- ---------- Balance at end of period $ 16,437 $ 16,745 $ 16,915 $ 17,007 Selected Ratios: ---------------------------- Net interest margin - FTE(a) 4.33% 4.22% 4.19% 4.02% Overhead expense ratio(a) 2.18 2.15 2.10 1.97 Efficiency ratio 43.96 43.86 43.02 42.93 Nonperforming loans and leases/total loans and leases 0.36 0.26 0.18 0.25 Nonperforming assets/total assets 0.39 0.21 0.13 0.18 Loans and leases past due 30 days or more, including past due non- accrual loans and leases, to total loans and leases 0.49 0.45 0.38 0.39 3/31/06 6/30/06 9/30/06 12/31/06 --------- --------- -------------------- Earnings Summary: ----------------------------- Net interest income $ 17,438 $ 17,985 $ 17,774 $ 17,523 Federal tax (FTE) adjustment 1,357 1,130 1,196 912 --------- --------- -------------------- Net interest income (FTE) 18,795 19,115 18,970 18,435 Provision for loan and lease losses (500) (500) (550) (900) Non-interest income 6,164 4,954 5,680 6,434 Non-interest expense (11,160) (11,017) (11,707) (12,506) --------- --------- -------------------- Pretax income (FTE) 13,299 12,552 12,393 11,463 FTE adjustment (1,357) (1,130) (1,196) (912) Provision for income taxes (3,545) (3,491) (3,187) (3,196) --------- --------- -------------------- Net income $ 8,397 $ 7,931 $ 8,010 $ 7,355 ========= ========= ==================== Earnings per share - diluted $ 0.50 $ 0.47 $ 0.48 $ 0.44 Non-interest Income: ----------------------------- Service charges on deposit accounts $ 2,322 $ 2,587 $ 2,540 $ 2,768 Mortgage lending income 603 779 792 744 Trust income 433 478 486 550 Bank owned life insurance income 443 455 463 471 Gains on sales of investment securities 1,831 27 718 1,341 Gains (losses) on sales of other assets 2 11 42 (145) Other 530 617 639 705 --------- --------- -------------------- Total non-interest income $ 6,164 $ 4,954 $ 5,680 $ 6,434 Non-interest Expense: ----------------------------- Salaries and employee benefits $ 6,584 $ 6,569 $ 6,993 $ 7,360 Net occupancy expense 1,660 1,738 1,732 1,900 Other operating expenses 2,850 2,644 2,917 3,182 Amortization of intangibles 66 66 65 65 --------- --------- -------------------- Total non-interest expense $ 11,160 $ 11,017 $ 11,707 $ 12,507 Allowance for Loan and Lease Losses: ----------------------------- Balance at beginning of period $ 17,007 $ 17,175 $ 17,332 $ 17,340 Net charge-offs (332) (343) (542) (541) Provision for loan and lease losses 500 500 550 900 --------- --------- -------------------- Balance at end of period $ 17,175 $ 17,332 $ 17,340 $ 17,699 Selected Ratios: ----------------------------- Net interest margin - FTE(a) 3.84% 3.61% 3.34% 3.22% Overhead expense ratio(a) 2.08 1.90 1.88 1.99 Efficiency ratio 44.71 45.77 47.49 50.29 Nonperforming loans and leases/total loans and leases 0.24 0.18 0.21 0.34 Nonperforming assets/total assets 0.17 0.13 0.15 0.24 Loans and leases past due 30 days or more, including past due non-accrual loans and leases, to total loans and leases 0.63 0.45 0.60 0.60 (a) Annualized based on actual days Bank of the Ozarks, Inc. Average Consolidated Balance Sheet and Net Interest Analysis (Dollars in Thousands) Unaudited Quarter Ended December 31, 2006 --------------------------- Average Income/ Yield/ Balance Expense Rate ----------- -------- ------ ASSETS Earnings assets: Interest earning deposits and federal funds sold $ 438 $ 3 3.01% Investment securities: Taxable 495,368 6,990 5.60 Tax-exempt - FTE 150,387 2,555 6.74 Loans and leases - FTE 1,622,083 33,461 8.18 ----------- -------- Total earnings assets - FTE 2,268,276 43,009 7.52 Non-earning assets 223,314 ----------- Total assets $2,491,590 =========== LIABILITIES AND STOCKHOLDERS' EQUITY Interest bearing liabilities: Deposits: Savings and interest bearing transaction $ 526,362 $ 3,776 2.85% Time deposits of $100,000 or more 851,918 10,995 5.12 Other time deposits 464,637 5,555 4.74 ----------- -------- Total interest bearing deposits 1,842,917 20,326 4.38 Repurchase agreements with customers 41,774 382 3.63 Other borrowings 204,755 2,585 5.01 Subordinated debentures 64,950 1,280 7.82 ----------- -------- Total interest bearing liabilities 2,154,396 24,573 4.53 Non-interest bearing liabilities: Non-interest bearing deposits 154,806 Other non-interest bearing liabilities 10,398 ----------- Total liabilities 2,319,600 Stockholders' equity 171,990 ----------- Total liabilities and stockholders' equity $2,491,590 =========== Interest rate spread - FTE 2.99% -------- Net interest income - FTE $18,436 ======== Net interest margin - FTE 3.22% Year Ended December 31, 2006 ---------------------------- Average Income/ Yield/ Balance Expense Rate ----------- --------- ------ ASSETS Earnings assets: Interest earning deposits and federal funds sold $ 287 $ 10 3.44% Investment securities: Taxable 452,943 25,346 5.60 Tax-exempt - FTE 184,779 12,894 6.98 Loans and leases - FTE 1,517,818 121,544 8.01 ----------- --------- Total earnings assets - FTE 2,155,827 159,794 7.41 Non-earning assets 209,489 ----------- Total assets $2,365,316 =========== LIABILITIES AND STOCKHOLDERS' EQUITY Interest bearing liabilities: Deposits: Savings and interest bearing transaction $ 523,324 $ 13,694 2.62% Time deposits of $100,000 or more 752,765 35,120 4.67 Other time deposits 398,178 16,531 4.15 ----------- --------- Total interest bearing deposits 1,674,267 65,345 3.90 Repurchase agreements with customers 39,213 1,312 3.35 Other borrowings 282,925 13,953 4.93 Subordinated debentures 49,641 3,868 7.79 ----------- --------- Total interest bearing liabilities 2,046,046 84,478 4.13 Non-interest bearing liabilities: Non-interest bearing deposits 152,281 Other non-interest bearing liabilities 8,795 ----------- Total liabilities 2,207,122 Stockholders' equity 158,194 ----------- Total liabilities and stockholders' equity $2,365,316 =========== Interest rate spread - FTE 3.28% --------- Net interest income - FTE $ 75,316 ========= Net interest margin - FTE 3.49% CONTACT: Bank of the Ozarks, Inc. Susan Blair, 501-978-2217