LITTLE ROCK, Ark. - Bank OZK (NASDAQ:OZK) reported fourth quarter earnings that beat analyst expectations, driven by strong loan growth and higher net interest income. The regional bank’s stock jumped 3.48% in after-hours trading Thursday following the release.
Bank OZK posted earnings per share of $1.56 for the quarter, surpassing the consensus estimate of $1.44. Revenue came in at $412.34 million, also topping expectations of $407.32 million.
Net income available to common stockholders rose 4.1% year-over-year to $178.1 million. The bank saw robust loan growth, with total loans increasing 13.3% from the prior year to $29.97 billion at quarter-end.
"We are very pleased to have achieved record net income and earnings per share in each quarter of 2024 and for the full year," said George Gleason, Chairman and CEO of Bank OZK. "Our consistent achievement of record earnings, while maintaining sound asset quality, has allowed us to accumulate capital, increase dividends and significantly expand and grow our business."
Net interest income grew 2.4% year-over-year to $379.4 million, benefiting from the expanded loan portfolio. However, the net interest margin compressed to 4.33% from 4.82% a year ago due to higher deposit costs.
Total (EPA:TTEF) deposits increased 13.3% from the prior year to $31.04 billion. The bank’s efficiency ratio improved to 33.71% from 35.33% in the year-ago quarter.
Bank OZK maintained strong asset quality, with non-performing loans to total loans at 0.44% compared to 0.25% a year earlier. The allowance for loan losses increased to 1.55% of total loans from 1.28% last year.
The strong quarterly results capped off a record year for Bank OZK, with full-year 2024 net income available to common stockholders rising 3.8% to $700.3 million.
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