Financial institution OZK inventory beneficial properties 3% on earnings beat, robust mortgage development

LITTLE ROCK, Ark. – Financial institution OZK (NASDAQ:OZK) reported fourth quarter earnings that beat analyst expectations, pushed by robust mortgage development and better internet curiosity earnings. The regional financial institution’s inventory jumped 3.48% in after-hours buying and selling Thursday following the discharge.

Financial institution OZK posted earnings per share of $1.56 for the quarter, surpassing the consensus estimate of $1.44. Income got here in at $412.34 million, additionally topping expectations of $407.32 million.

Web earnings out there to frequent stockholders rose 4.1% year-over-year to $178.1 million. The financial institution noticed strong mortgage development, with complete loans growing 13.3% from the prior yr to $29.97 billion at quarter-end.

“We’re more than happy to have achieved document internet earnings and earnings per share in every quarter of 2024 and for the complete yr,” mentioned George Gleason, Chairman and CEO of Financial institution OZK. “Our constant achievement of document earnings, whereas sustaining sound asset high quality, has allowed us to build up capital, improve dividends and considerably broaden and develop our enterprise.”

Web curiosity earnings grew 2.4% year-over-year to $379.4 million, benefiting from the expanded mortgage portfolio. Nonetheless, the web curiosity margin compressed to 4.33% from 4.82% a yr in the past attributable to increased deposit prices.

Complete (EPA:TTEF) deposits elevated 13.3% from the prior yr to $31.04 billion. The financial institution’s effectivity ratio improved to 33.71% from 35.33% within the year-ago quarter.

Financial institution OZK maintained robust asset high quality, with non-performing loans to complete loans at 0.44% in comparison with 0.25% a yr earlier. The allowance for mortgage losses elevated to 1.55% of complete loans from 1.28% final yr.

The robust quarterly outcomes capped off a document yr for Financial institution OZK, with full-year 2024 internet earnings out there to frequent stockholders rising 3.8% to $700.3 million.

This text was generated with the help of AI and reviewed by an editor. For extra info see our T&C.