Bank Of The Ozarks Inc (NASDAQ:OZRK) Q4 2014 Earnings Conference Call - Final Transcript

Jan 16, 2015 • 11:00 am ET


Bank Of The Ozarks Inc (NASDAQ:OZRK) Q4 2014 Earnings Conference Call - Final Transcript


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Susan Blair

flows of our purchased loan portfolio; changes in the value and volume of our securities portfolio; the impact from termination of the loss share agreement, conversion of our core banking software and expected cost saved in connections with such conversions, the opening, relocating and closing of banking offices; our expectations regarding recent mergers and acquisitions and our goals for additional mergers and acquisitions in the future; changes in growth in our staff and expenses with regard to regulatory compliance.

You should understand that our actual results may differ materially from those projected in the forward-looking statements, due to a number of risks and uncertainties, some of which we will point out during the course of this call.

For a list of certain risks associated with our business, you should also refer to the Forward-Looking Information section of our periodic public reports, the forward-looking statements caption of our most recent earnings release, and the description of certain risk factors contained in our most recent Annual Report on Form 10-K all as filed with the SEC.

Forward-looking statements made by the company and its management are based on estimates, projections, beliefs and assumptions of management at the time of such statements and are not guarantees of future performance.

Unidentified Speaker

25 spin-off offices to fund the record loan in lease growth that Greg just described.

You can see this on our $357 million of deposit growth in the quarter just ended when of course we had no acquisitions. More importantly, excluding accounts acquired in our 2014 acquisitions, we achieved record growth in 2014 in our number of net new core checking accounts with approximately 9,370 net new accounts added.

This record core account growth along with our acquisitions, contributed to our record annual service charge income in 2014. Even as we achieved substantial deposit growth, our favorable cost of interest bearing deposits contributed to our superb net interest margin of 5.53% for the fourth quarter and 5.52% for the full year of 2014.

2014 was a very important year for us, more so than just for our stellar financial results and excellent growth, we successfully implemented the biggest technology advancements our company has made in the past 30 years. Laying a foundation it should serve us well for years to come.

Earlier in the year we completed an extensive RFP process which resulted in our decision to convert our core operating systems to Fiserv Premier. This was a significant decision and a monumental initiative.

In August we converted our legacy bank systems. In October we converted our acquired omni bank systems. And in November we converted our acquired Summit bank systems. We expect to complete conversion of our acquired FNB Shelby systems in February 2015 and are soon to be acquired Intervest systems in June 2015.

Additionally, in the second quarter of 2015 we expect to open our new Arkansas data center which is now under development.Our core systems convergent project has been a significant undertaking but yet combined with our new data center