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Summary

  • Recently, 3 insiders transacted a total of 14,288 shares at an average price of $58.82.
  • Overall, 166,288 shares were bought and 353,619 shares were sold in the last twelve months.
  • Together, insiders hold 13.39% of the shares outstanding.

According to management, Bank of the Ozarks "provides a wide range of retail and commercial banking services. Deposit services include checking, savings, money market, time deposit and individual retirement accounts. Loan services include various types of real estate, consumer, commercial, industrial and agricultural loans and various leasing services. The Company also provides mortgage

lending; treasury management services for businesses, individuals and non-profit and governmental entities including wholesale lock box services; remote deposit capture services; trust and wealth management services for businesses, individuals and non-profit and governmental entities including financial planning, money management, custodial services and corporate trust services; real estate appraisals; credit-related life and disability insurance; ATMs; telephone banking; online and mobile banking services including electronic bill pay; debit cards, gift cards and safe deposit boxes, among other products and services. Through third party providers, the Company offers credit cards for consumers and businesses, processing of merchant debit and credit card transactions, and full-service investment brokerage services. While the Company provides a wide variety of retail and commercial banking services, it operates in only one segment. No revenues are derived from foreign countries and no single external customer comprises more than 10% of the Company's revenues."

History

OZRK Chart

OZRK data by YCharts

Currently, OZRK trades near the top of its 52-week range.

Recent Transactions

NamePositionShares TransactedTransaction PriceDate
AREHART JEANDirector1,000$62.806/13/2014
AREHART JEANDirector1,000$62.946/13/2014
CISNE RICHARD LDirector2,025$58.375/22/2014
CISNE RICHARD LDirector1,325$58.495/22/2014
CISNE RICHARD LDirector2,825$58.305/22/2014
CISNE RICHARD LDirector3,400$58.305/22/2014
CISNE RICHARD LDirector450$58.255/22/2014
REYNOLDS JOHNDirector2,000$57.415/20/2014
REYNOLDS JOHNDirector263$56.895/20/2014

Recently, 3 insiders transacted a total of 14,288 shares at an average price of $58.82.

Insider Transactions in the Last Twelve Months

DateNet # of TransactionsShares BoughtShares SoldNet Shares TransactedPriceMonthly Volume
Jun-1412,000-8,000-6,000$64.872,605,000
May-14712,288 12,288$59.044,346,000
Apr-14    $59.904,877,000
Mar-1411,600 1,600$68.064,838,000
Feb-14-343,900-95,324-51,424$63.423,912,000
Jan-14612,000 12,000$63.404,805,000
Dec-13-1 -524-524$56.593,434,000
Nov-13473,700-107,400-33,700$56.152,629,000
Oct-13-814,800-38,071-23,271$49.483,715,000
Sep-13-2 -98,300-98,300$47.942,646,000
Aug-13 6,000-6,000 $45.381,962,000
Jul-13    $47.783,986,000

Overall, 166,288 shares were bought and 353,619 shares were sold in the last twelve months.

Current Insider Holdings

Holder NameAmount Held% Shares OutstandingLatest ChgFiling Date
GLEASON II GEORGE G3,027,7367.60%-50,0002/26/2014
WHIPPLE ROSS M1,158,5412.91%05/19/2014
ROSS MARK D494,7291.24%-19,0355/17/2013
FREEDBERG CATHERINE BLA91,4340.23%02/14/2014
GLEASON LINDA78,8160.20%02/26/2014
SMITH KENNITH73,2650.18%02/28/2013
RUSSELL R DARREL66,7230.17%02/27/2014
EAST ROBERT66,3000.17%02/14/2014
MARIANI HENRY55,0000.14%-8,0006/5/2014
VANCE TYLER A38,9320.10%02/14/2014
CISNE RICHARD L37,3250.09%10,0255/22/2014
THOMAS DAN28,2880.07%02/14/2014
MCKINNEY GREGORY L27,0700.07%02/14/2014
QUALLS R L20,2000.05%02/14/2014
AREHART JEAN18,2360.05%2,0006/13/2014
HASTINGS JAY SCOTT12,1340.03%1,50911/4/2013
HOLMAN GENE8,7700.02%1,50011/4/2013
REYNOLDS JOHN8,4180.02%2,2635/20/2014
KYLE REX W7,1710.02%1,50011/4/2013
KENNY PETER C4,3000.01%2,3002/25/2014
BROWN NICHOLAS2,3000.01%1,6003/3/2014
PROOST ROBERT L2,0000.01%02/14/2014
WEST-SCANTLEBURY SHERE280.00%02/14/2014

Source: Form 4

Together, insiders hold 13.39% of the shares outstanding.

From the comparables table below, you can see that OZRK trumps its peers in terms of profitability, capital, and credit quality. As a regional bank, OZRK has a stronger balance sheet than the major banks in Bank of America (NYSE: BAC) and Citigroup (NYSE: C). Zions Bancorporation (NASDAQ: ZION), which also operates regional banks, lags OZRK in net interest spread and NPL's/Total Loans. Thus, OZRK is clearly a premium bank at a P/TV ratio of 3.85.

Comparables Table

In millions except per share data.     
Ticker(NASDAQ:OZRK)(NYSE:BBT)(NASDAQ:)(NYSE:)(NYSE:)
Fiscal Period Date3/31/20143/31/20143/31/20143/31/20143/31/2014
Market Value ($M)2,606.027,917.25,507.1164,570.1145,601.8
Price/ Tangible Book3.822.081.211.150.85
Return on Assets2.061.080.460.450.73
Annualized ROA2.101.180.73-0.050.84
Return on Equity15.709.445.303.876.89
Annualized ROE15.829.815.52-0.947.66
Net Interest Margin (%)5.633.583.302.512.74
Annualized Net Interest Margin (%)5.393.493.262.282.83
Net Interest Spread (%)5.283.312.942.292.66
Tier 1 Risk-Based Capital Ratio (%)15.2012.1013.1911.9011.10
Total Risk-Based Capital Ratio (%)16.1614.6015.1114.8012.30
Leverage Ratio (%)14.419.5010.717.405.60
Tier 1 Common Equity Ratio (%)-10.2010.5611.8014.59
Common Equity/ Total Assets (%)12.9911.269.9510.1710.62
Assets/ Equity7.667.848.519.279.01
Avg Equity/ Avg Assets (%)13.1010.759.6510.1110.37
Book Value per Share17.6828.9330.1920.7566.25
Price/ Book Value per Share3.851.391.030.830.72
Tangible Book Value per Share17.1118.6724.5313.6156.40
Tangible Common Equity63213,4174,535143,357171,345
Tangible Common Equity Ratio (%)12.627.578.246.919.19
Tang Com Equity/ Risk-Wtd Assets (%)13.899.7010.2411.1815.46
Total Risk Based Capital73620,1546,687190,124191,651
Risk-Weighted Assets4,552138,37544,2671,282,1171,108,011
T12M Net Chg Offs/ Avg Tot Loans0.170.560.110.731.47
Annualized Net Chg-Offs/ Avg Tot Loans0.050.550.080.601.48
Prov Loan Losses/ Total Loans (%)0.040.05-0.000.110.27
Provision for Loan Losses160-11,0091,793
Actual Loan Losses (Net Chg-Offs)015981,3882,439
T12M Actual Loan Losses (Net Chg-Offs)5662426,76810,024
Actual Loan Losses/ Provisions (%)29.75265.00-1,311.48137.56-
Loan Loss Coverage90.985.3819.590.243.20
Reserve for Loan Losses441,64273716,61818,923
Rsrv for Loan Losses/ Tot Loans (%)1.231.401.871.792.72
Loan Loss Res/ NPA's (NYSEMKT:BPS)151.98166.53167.1193.72210.21
NPL's1290340217,1098,593
NPA's2998644117,7329,002
NPA's/ Total Assets (%)0.570.530.790.820.48
NPA's/ Total Loans(%)0.810.841.121.911.29
NPL's/ Total Loans0.330.771.021.841.23

Conclusions

Given the terrific metrics in profitability, capital, and credit quality, Ozarks is a premium bank that could be bought long. The recent insider purchases only bolsters this view. Furthermore, Ozarks has raised its dividend every quarter for the last 15 quarters and currently yields 1.4%. The bank relies on acquisition of undervalued assets, and the financial crisis had brought on plenty of such opportunities.

Despite the exciting growth opportunities, the bank trades at a high TBV multiple. Thus, investors could find great entry points when a sell-off of fast growers develops.

Source: 3 Insiders Are Buying Bank Of The Ozarks Stock