• Bank OZK Announces Record Second Quarter 2023 Earnings

    来源: Nasdaq GlobeNewswire / 20 7月 2023 15:10:28   America/Chicago

    LITTLE ROCK, Ark., July 20, 2023 (GLOBE NEWSWIRE) -- Bank OZK (the “Bank”) (Nasdaq: OZK) today announced that net income available to common stockholders for the second quarter of 2023 was a record $167.9 million, a 26.9% increase from $132.4 million for the second quarter of 2022. Diluted earnings per common share for the second quarter of 2023 were a record $1.47, a 33.6% increase from $1.10 for the second quarter of 2022.

    For the six months ended June 30, 2023, net income available to common stockholders was $333.8 million, a 28.2% increase from $260.4 million for the first six months of 2022. Diluted earnings per common share for the first six months of 2023 were $2.88, a 35.8% increase from $2.12 for the first six months of 2022.

    Pre-tax pre-provision net revenue (“PPNR”) was $259.5 million for the second quarter of 2023, a 41.9% increase from $182.8 million for the second quarter of 2022. For the first six months of 2023, PPNR was $505.9 million, a 42.1% increase from $355.9 million for the first six months of 2022. The calculation of PPNR and the reconciliation to generally accepted accounting principles (“GAAP”) are included in the schedules accompanying this release.

    Provision for credit losses was $41.8 million for the second quarter and $77.6 million for the first six months of 2023 compared to $7.0 million for the second quarter of 2022 and $11.2 million for the first six months of 2022. The Bank’s total allowance for credit losses (“ACL”) was $426.8 million at June 30, 2023 compared to $299.9 million at June 30, 2022.

    The Bank’s annualized returns on average assets, average common stockholders’ equity and average tangible common stockholders’ equity for the second quarter of 2023 were 2.27%, 15.14% and 17.78%, respectively, compared to 2.02%, 12.40% and 14.69%, respectively, for the second quarter of 2022. The Bank’s annualized returns on average assets, average common stockholders’ equity and average tangible common stockholders’ equity for the first six months of 2023 were 2.34%, 15.19% and 17.86%, respectively, compared to 2.00%, 12.03% and 14.20%, respectively, for the first six months of 2022. The calculation of the Bank’s returns on average common stockholders’ equity and average tangible common stockholders’ equity and the reconciliations to GAAP are included in the schedules accompanying this release.

    George Gleason, Chairman and Chief Executive Officer stated, “We are pleased to report our record results for the quarter just ended, which continued our long tradition of industry-leading performance. Our strong earnings and capital have us well-positioned to grow and capitalize on opportunities resulting from the current macroeconomic and industry environment.”

    KEY BALANCE SHEET METRICS

    Total loans were $23.61 billion at June 30, 2023, a 26.0% increase from $18.74 billion at June 30, 2022. Deposits were $23.98 billion at June 30, 2023, a 20.0% increase from $19.98 billion at June 30, 2022. Total assets were $30.76 billion at June 30, 2023, an 18.7% increase from $25.92 billion at June 30, 2022.

    Common stockholders’ equity was $4.47 billion at June 30, 2023, a 4.8% increase from $4.27 billion at June 30, 2022. Tangible common stockholders’ equity was $3.81 billion at June 30, 2023, a 5.8% increase from $3.60 billion at June 30, 2022. During the quarter just ended, the Bank repurchased approximately 1.96 million shares for $66.1 million, which equates to a weighted average cost of approximately $33.80 per share. During the first six months of 2023, the Bank repurchased 4.3 million shares for $151.5 million, which equates to a weighted average cost of approximately $35.19 per share.

    Book value per common share was $39.51 at June 30, 2023, a 10.1% increase from $35.87 at June 30, 2022. Tangible book value per common share was $33.67 at June 30, 2023, an 11.2% increase from $30.27 at June 30, 2022.

    The Bank’s ratio of total common stockholders’ equity to total assets was 14.53% at June 30, 2023, compared to 16.47% at June 30, 2022. Its ratio of total tangible common stockholders’ equity to total tangible assets was 12.66% at June 30, 2023, compared to 14.26% at June 30, 2022. The calculations of the Bank’s total common stockholders’ equity, tangible common stockholders’ equity, tangible book value per common share, and ratio of total tangible common stockholders’ equity to total tangible assets and the reconciliations to GAAP are included in the schedules accompanying this release.

    ASSET QUALITY

    The Bank’s ratio of nonperforming non-purchased loans to total loans (excluding purchased loans) was 0.15% at June 30, 2023, compared to 0.16% as of June 30, 2022. The Bank’s ratio of nonperforming assets to total assets (excluding purchased loans, except for their inclusion in total assets) was 0.32% at June 30, 2023, compared to 0.12% as of June 30, 2022. The Bank’s annualized ratio of net charge-offs of total loans to average total loans was 0.15% for the second quarter and six months ended June 30, 2023 compared to 0.01% for the second quarter and 0.00% for the six months ended June 30, 2022.

    MANAGEMENT’S COMMENTS, CONFERENCE CALL, TRANSCRIPT AND FILINGS
    In connection with this release, the Bank released management’s comments on its quarterly results, which are available at http://ir.ozk.com. This release should be read in conjunction with management’s comments on the quarterly results.

    Management will conduct a conference call to take questions at 10:00 a.m. CT (11:00 a.m. ET) on Friday, July 21, 2023. Interested parties may access the conference call live via webcast on the Bank’s investor relations website at https://ir.ozk.com/news/event-calendar, or may participate via telephone by registering using this online form. Upon registration, all telephone participants will receive the dial-in number along with a unique PIN number that can be used to access the call. A replay of the conference call webcast will be archived on the Bank’s website for at least 30 days.

    The Bank files annual, quarterly and current reports, proxy materials, and other information required by the Securities Exchange Act of 1934 with the Federal Deposit Insurance Corporation (“FDIC”), copies of which are available electronically at the FDIC’s website at https://efr.fdic.gov/fcxweb/efr/index.html and are also available on the Bank’s investor relations website at ir.ozk.com. To receive automated email alerts for these materials please visit https://ir.ozk.com/other/email-alerts to sign up.

    NON-GAAP FINANCIAL MEASURES

    This release contains certain non-GAAP financial measures. The Bank uses these non-GAAP financial measures, specifically return on average common stockholders’ equity, return on average tangible common stockholders’ equity, tangible book value per common share, total common stockholders’ equity, total tangible common stockholders’ equity, the ratio of total tangible common stockholders’ equity to total tangible assets, and PPNR, to assess the strength of its capital, its ability to generate earnings on tangible capital invested by its shareholders and trends in its net revenue. These measures typically adjust GAAP financial measures to exclude intangible assets or provision for credit losses. Management believes presentation of these non-GAAP financial measures provides useful supplemental information which contributes to a proper understanding of the financial results and capital levels of the Bank. These non-GAAP disclosures should not be viewed as a substitute for financial results determined in accordance with GAAP, and they are not necessarily comparable to non-GAAP performance measures that may be presented by other banks. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are included in the tables at the end of this release under the caption “Reconciliation of Non-GAAP Financial Measures.”

    FORWARD-LOOKING STATEMENTS

    This press release and other communications by the Bank include certain “forward-looking statements” regarding the Bank’s plans, expectations, thoughts, beliefs, estimates, goals and outlook for the future that are intended to be covered by the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on management’s expectations as well as certain assumptions and estimates made by, and information available to, management at the time. Those statements are not guarantees of future results or performance and are subject to certain known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those expressed in, or implied by, such forward-looking statements. These risks, uncertainties and other factors include, but are not limited to: potential delays or other problems in implementing the Bank’s growth and expansion strategies, including hiring or retaining qualified personnel, obtaining regulatory or other approvals, delays in identifying satisfactory sites, obtaining permits and designing, constructing and opening new offices or relocating, selling or closing existing offices; the availability of and access to capital; possible downgrades in the Bank’s credit ratings or outlook which could increase the costs of or decrease the availability of funding from capital markets; the ability to attract new or retain existing deposits or to retain or grow loans, including growth from unfunded closed loans; the ability to generate future revenue growth or to control future growth in non-interest expense; interest rate fluctuations, including changes in the yield curve between short-term and long-term interest rates or changes in the relative relationships of various interest rate indices; competitive factors and pricing pressures, including their effect on the Bank’s net interest margin or core spread; general economic, unemployment, credit market and real estate market conditions, and the effect of such conditions on the creditworthiness of borrowers, collateral values, the value of investment securities and asset recovery values; conditions within the banking industry, including the effects of recent failures of other financial institutions; recently enacted and potential laws and regulatory requirements, or changes to existing laws and regulatory requirements, including changes affecting oversight of the financial services industry, changes intended to manage or mitigate climate and related environmental risks, or changes in the interpretation and enforcement of such laws and requirements, and the costs and expenses to comply with new and/or existing legislation and regulatory requirements; uncertainty regarding changes in U.S. government monetary and fiscal policy; FDIC special assessments or changes to regular assessments; the ability to keep pace with technological changes, including changes regarding artificial intelligence and maintaining cybersecurity; the impact of failure in, or breach of, our operational or security systems or infrastructure, or those of third parties with whom we do business, including as a result of cyberattacks or an increase in the incidence or severity of fraud, illegal payments, security breaches or other illegal acts impacting the Bank or its customers; natural disasters; acts of war or terrorism; the potential impact of continuing inflationary pressures; the potential impact of supply chain disruptions; national or international political instability or military conflict, including the ongoing war in Ukraine; the competition and costs of recruiting and retaining human talent; impairment of our goodwill; adoption of new accounting standards, or changes in existing standards; and adverse results (including costs, fines, reputational harm and/or other negative effects) from current or future litigation, regulatory examinations or other legal and/or regulatory actions or rulings as well as other factors identified in this communication or as detailed from time to time in our public filings, including those factors described in the disclosures under the headings “Forward-Looking Information” and “Item 1A. Risk Factors” in our most recent Annual Report on Form 10-K for the year ended December 31, 2022 and our quarterly reports on Form 10-Q. Should one or more of the foregoing risks materialize, or should underlying assumptions prove incorrect, actual results or outcomes may vary materially from those described in, or implied by, such forward-looking statements. The Bank disclaims any obligation to update or revise any forward-looking statements based on the occurrence of future events, the receipt of new information or otherwise.

    GENERAL INFORMATION

    Bank OZK (Nasdaq: OZK) is a regional bank providing innovative financial solutions delivered by expert bankers with a relentless pursuit of excellence. Established in 1903, Bank OZK conducts banking operations with over 240 offices in eight states including Arkansas, Georgia, Florida, North Carolina, Texas, New York, California and Mississippi and had $30.76 billion in total assets as of June 30, 2023. Bank OZK can be found at www.ozk.com and on Facebook, Twitter and LinkedIn or contacted at (501) 978-2265 or P.O. Box 8811, Little Rock, Arkansas 72231-8811.


    Bank OZK
    Consolidated Balance Sheets
    Unaudited
         
      June 30, 2023 December 31, 2022
      (Dollars in thousands)
    ASSETS    
    Cash and cash equivalents $1,454,789  $1,033,454 
    Investment securities – available for sale (“AFS”)  3,262,366   3,491,613 
    Investment securities – trading  8,991   8,817 
    Federal Home Loan Bank of Dallas (“FHLB”) and other bankers’ bank stocks  62,855   42,406 
    Non-purchased loans  23,291,785   20,400,154 
    Purchased loans  315,661   378,637 
    Allowance for loan losses  (263,188)  (208,858)
    Net Loans  23,344,259   20,569,933 
    Premises and equipment, net  670,262   678,405 
    Foreclosed assets  62,048   6,616 
    Accrued interest receivable  144,842   125,130 
    Bank owned life insurance (“BOLI”)  799,142   789,805 
    Goodwill and other intangible assets, net  661,166   663,543 
    Other, net  291,151   246,846 
    Total assets $30,761,870  $27,656,568 
         
    LIABILITIES AND STOCKHOLDERS’ EQUITY    
    Deposits:    
    Demand non-interest bearing $4,535,365  $4,658,451 
    Savings and interest bearing transaction  8,975,142   9,905,717 
    Time  10,472,890   6,935,975 
    Total deposits  23,983,397   21,500,143 
    Other borrowings  1,104,478   606,666 
    Subordinated notes  347,350   346,947 
    Subordinated debentures  121,652   121,591 
    Reserve for losses on unfunded loan commitments  163,632   156,419 
    Accrued interest payable and other liabilities  230,098   233,864 
    Total liabilities $25,950,607  $22,965,630 
         
    Commitments and contingencies    
         
    Stockholders’ equity:    
    Preferred Stock: $0.01 par value; 100,000,000 shares authorized;
       14,000,000 issued and outstanding at June 30, 2023 and
       December 31, 2022    		  338,980   338,980 
    Common Stock: $0.01 par value; 300,000,000 shares authorized;
       113,145,449 and 117,176,928 shares issued and outstanding at June 30, 2023
       and December 31, 2022, respectively    		  1,131   1,172 
    Additional paid-in capital  1,602,964   1,753,941 
    Retained earnings  3,026,247   2,773,135 
    Accumulated other comprehensive (loss) income  (159,431)  (177,649)
    Total stockholders’ equity before noncontrolling interest  4,809,891   4,689,579 
    Noncontrolling interest  1,372   1,359 
    Total stockholders’ equity  4,811,263   4,690,938 
    Total liabilities and stockholders’ equity $30,761,870  $27,656,568 


    Bank OZK
    Consolidated Statements of Income
    Unaudited
         
      Three Months Ended
    June 30,    		 Six Months Ended
    June 30,
       2023   2022   2023   2022 
      (Dollars in thousands, except per share amounts)
    Interest income:        
    Non-purchased loans $472,524  $256,264  $887,420  $496,259 
    Purchased loans  5,322   8,982   11,840   17,152 
    Investment securities:        
    Taxable  9,704   10,367   19,875   20,978 
    Tax-exempt  9,489   4,020   18,753   7,006 
    Deposits with banks and federal funds sold  11,407   1,855   19,277   2,464 
    Total interest income  508,446   281,488   957,165   543,859 
             
    Interest expense:        
    Deposits  136,122   10,855   229,754   19,347 
    Other borrowings  10,591   1,042   16,013   2,039 
    Subordinated notes  2,603   2,603   5,177   5,177 
    Subordinated debentures  2,306   1,195   4,545   2,159 
    Total interest expense  151,622   15,695   255,489   28,722 
             
    Net interest income  356,824   265,793   701,676   515,137 
    Provision for credit losses  41,774   7,025   77,602   11,215 
    Net interest income after provision for credit losses  315,050   258,768   624,074   503,922 
             
    Non-interest income:        
    Service charges on deposit accounts:        
    NSF and overdraft fees  4,373   4,247   8,651   8,449 
    All other service charges  7,187   7,184   13,688   13,874 
    Trust income  2,113   1,911   4,146   4,005 
    BOLI income:        
    Increase in cash surrender value  5,069   4,846   10,043   9,639 
    Death benefits  —   —   —   297 
    Loan service, maintenance and other fees  4,095   3,603   8,170   6,621 
    Gains on sales of other assets  5,033   784   5,377   7,776 
    Net gains on investment securities  620   531   2,336   441 
    Other  3,497   3,214   7,384   6,694 
    Total non-interest income  31,987   26,320   59,795   57,796 
             
    Non-interest expense:        
    Salaries and employee benefits  65,219   54,412   128,468   109,060 
    Net occupancy and equipment  19,476   17,060   37,560   34,309 
    Other operating expenses  44,660   37,828   89,543   73,647 
    Total non-interest expense  129,355   109,300   255,571   217,016 
             
    Income before taxes  217,682   175,788   428,298   344,702 
    Provision for income taxes  45,717   39,375   86,420   75,786 
    Net income  171,965   136,413   341,878   268,916 
    Earnings attributable to noncontrolling interest  (1)  (8)  (13)  (3)
    Preferred stock dividends  4,047   4,047   8,094   8,527 
    Net income available to common stockholders $167,917  $132,358  $333,771  $260,386 
             
    Basic earnings per common share $1.47  $1.10  $2.89  $2.13 
             
    Diluted earnings per common share $1.47  $1.10  $2.88  $2.12 


    Bank OZK
    Consolidated Statements of Stockholders’ Equity
    Unaudited
     
      Preferred Stock Common Stock Additional
    Paid-in
    Capital    		 Retained Earnings Accumulated Other Comprehensive (Loss) Income Non-Controlling Interest Total
      (Dollars in thousands, except per share amounts)
    Three months ended June 30, 2023:              
    Balances – March 31, 2023 $338,980 $1,151  $1,664,569  $2,898,904  $(141,677) $1,371 $4,763,298 
    Net income  —  —   —   171,965   —   —  171,965 
    Earnings attributable to noncontrolling interest  —  —   —   (1)  —   1  — 
    Total other comprehensive income (loss)  —  —   —   —   (17,754)  —  (17,754)
    Preferred stock dividends, $0.28906 per share  —  —   —   (4,047)  —   —  (4,047)
    Common stock dividends, $0.35 per share  —  —   —   (40,574)  —   —  (40,574)
    Issuance of 30,148 shares of common stock pursuant to stock-based compensation plans  —  —   23   —   —   —  23 
    Repurchase and cancellation of 1,956,101 shares of common stock under share repurchase program, including excise taxes  —  (20)  (66,106)  —       (66,126)
    Stock-based compensation expense  —  —   4,478   —   —   —  4,478 
    Forfeitures of 8,706 shares of unvested restricted common stock  —  —   —   —   —   —  — 
    Balances – June 30, 2023 $338,980 $1,131  $1,602,964  $3,026,247  $(159,431) $1,372 $4,811,263 
                   
    Six months ended June 30, 2023:              
    Balances – December 31, 2022 $338,980 $1,172  $1,753,941  $2,773,135  $(177,649) $1,359 $4,690,938 
    Net income  —  —   —   341,878   —   —  341,878 
    Earnings attributable to noncontrolling interest  —  —   —   (13)  —   13  — 
    Total other comprehensive income  —  —   —   —   18,218   —  18,218 
    Preferred stock dividends, $0.57812 per share  —  —   —   (8,094)  —   —  (8,094)
    Common stock dividends, $0.69 per share  —  —   —   (80,659)  —   —  (80,659)
    Issuance of 503,187 shares of common stock pursuant to stock-based compensation plans  —  5   541   —   —   —  546 
    Repurchase and cancellation of 4,304,239 shares of common stock under share repurchase program, including excise taxes  —  (44)  (151,421)  —   —   —  (151,465)
    Repurchase and cancellation of 215,362 shares of common stock withheld for tax pursuant to stock-based compensation plans  —  (2)  (8,672)  —       (8,674)
    Stock-based compensation expense  —  —   8,575   —   —   —  8,575 
    Forfeitures of 15,065 shares of unvested restricted common stock  —  —   —   —   —   —  — 
    Balances – June 30, 2023 $338,980 $1,131  $1,602,964  $3,026,247  $(159,431) $1,372 $4,811,263 


    Bank OZK
    Consolidated Statements of Stockholders’ Equity
    Unaudited
     
      Preferred Stock Common Stock Additional
    Paid-in
    Capital    		 Retained Earnings Accumulated Other Comprehensive (Loss) Income Non-Controlling Interest Total
      (Dollars in thousands, except per share amounts)
    Three months ended June 30, 2022:              
    Balances – March 31, 2022 $338,980 $1,227  $1,962,126  $2,468,652  $(80,928) $3,112 $4,693,169 
    Net income  —  —   —   136,413   —   —  136,413 
    Earnings attributable to noncontrolling interest  —  —   —   (8)  —   8  — 
    Total other comprehensive loss  —  —   —   —   (33,240)  —  (33,240)
    Preferred stock dividends, $0.28906 per share  —  —   —   (4,047)  —     (4,047)
    Common stock dividends, $0.31 per share  —  —   —   (37,880)  —   —  (37,880)
    Issuance of 41,503 shares of common stock pursuant to stock-based compensation plans  —  —   594   —   —   —  594 
    Repurchase and cancellation of 3,689,819 shares of common stock under share repurchase program  —  (37)  (147,396)  —   —   —  (147,433)
    Stock-based compensation expense  —  —   2,326   —   —   —  2,326 
    Forfeitures of 32,858 shares of unvested restricted common stock  —  —   —   —   —   —  — 
    Balances – June 30, 2022 $338,980 $1,190  $1,817,650  $2,563,130  $(114,168) $3,120 $4,609,902 
                   
    Six months ended June 30, 2022:              
    Balances – December 31, 2021 $338,980 $1,254  $2,093,702  $2,378,466  $23,841  $3,117 $4,839,360 
    Net income  —  —   —   268,916   —   —  268,916 
    Earnings attributable to noncontrolling interest  —  —   —   (3)  —   3  — 
    Total other comprehensive loss  —  —   —   —   (138,009)  —  (138,009)
    Preferred stock dividends, $0.60906 per share  —  —   —   (8,527)  —     (8,527)
    Common stock dividends, $0.61 per share  —  —   —   (75,722)  —   —  (75,722)
    Issuance of 289,929 shares of common stock pursuant to stock-based compensation plans  —  3   2,077   —   —   —  2,080 
    Repurchase and cancellation of 6,572,832 shares of common stock under share repurchase program  —  (65)  (278,932)  —   —   —  (278,997)
    Repurchase and cancellation of 112,974 shares of common stock withheld for tax pursuant to stock-based compensation plans.  —  (1)  (5,398)  —   —   —  (5,399)
    Stock-based compensation expense  —  —   6,200   —   —   —  6,200 
    Forfeitures of 51,850 shares of unvested restricted common stock  —  (1)  1   —   —   —  — 
    Balances – June 30, 2022 $338,980 $1,190  $1,817,650  $2,563,130  $(114,168) $3,120 $4,609,902 


    Bank OZK
    Summary of Non-Interest Expense
    Unaudited
     
     Three Months Ended
    June 30,    		 Six Months Ended
    June 30,
     2023 2022 2023 2022
     (Dollars in thousands)
    Salaries and employee benefits$65,219 $54,412 $128,468 $109,060
    Net occupancy and equipment 19,476  17,060  37,560  34,309
    Other operating expenses:       
    Software and data processing 9,768  8,976  19,051  17,162
    Professional and outside services 5,445  5,708  10,550  10,525
    Deposit insurance and assessments 4,900  2,100  9,048  4,250
    Advertising and public relations 3,184  1,103  7,219  2,362
    Postage and supplies 2,431  1,461  4,144  3,126
    Telecommunication services 2,398  1,921  4,671  3,931
    Travel and meals 1,903  2,186  3,718  3,944
    ATM expense 1,659  1,488  3,798  2,997
    Amortization of intangibles 1,189  1,516  2,377  3,033
    Loan collection and repossession expense 517  353  904  678
    Writedowns of foreclosed and other assets 24  —  965  258
    Amortization of CRA and tax credit investments 5,566  4,628  11,980  9,730
    Other 5,676  6,388  11,118  11,651
    Total non-interest expense$129,355 $109,300 $255,571 $217,016


    Bank OZK
    Summary of Total Loans Outstanding
    Unaudited
     
     June 30, 2023 December 31, 2022
     (Dollars in thousands)
    Real estate:       
    Residential 1-4 family$966,684  4.1% $981,567  4.7%
    Non-farm/non-residential 4,960,287  21.0   4,665,268  22.5 
    Construction/land development 9,446,030  40.0   8,215,056  39.5 
    Agricultural 243,798  1.0   239,689  1.2 
    Multifamily residential 1,988,764  8.4   1,503,398  7.2 
    Total real estate 17,605,563  74.5   15,604,978  75.1 
    Commercial and industrial 1,268,787  5.4   902,321  4.3 
    Consumer 2,825,552  12.0   2,445,851  11.8 
    Other 1,907,545  8.1   1,825,641  8.8 
    Total loans 23,607,447  100.0%  20,778,791  100.0%
    Allowance for loan losses (263,188)    (208,858)  
    Net loans$23,344,259    $20,569,933   


    Bank OZK
    Allowance for Credit Losses
    Unaudited
     
     Allowance for Loan Losses Reserve for Losses on Unfunded Loan Commitments Total Allowance for Credit Losses
     (Dollars in thousands)
    Three months ended June 30, 2023:     
    Balances – March 31, 2023$222,025  $171,742  $393,767 
    Net charge-offs (8,721)  —   (8,721)
    Provision for credit losses 49,884   (8,110)  41,774 
    Balances – June 30, 2023$263,188  $163,632  $426,820 
          
    Six Months Ended June 30, 2023:     
    Balances – December 31, 2022$208,858  $156,419  $365,277 
    Net charge-offs (16,059)  —   (16,059)
    Provision for credit losses 70,389   7,213   77,602 
    Balances – June 30, 2023$263,188  $163,632  $426,820 
          
    Three months ended June 30, 2022:     
    Balances – March 31, 2022$204,213  $89,327  $293,540 
    Net charge-offs (627)  —   (627)
    Provision for credit losses (12,791)  19,816   7,025 
    Balances – June 30, 2022$190,795  $109,143  $299,938 
          
    Six Months Ended June 30, 2022:     
    Balances – December 31, 2021$217,380  $71,609  $288,989 
    Net charge-offs (266)  —   (266)
    Provision for credit losses (26,319)  37,534   11,215 
    Balances – June 30, 2022$190,795  $109,143  $299,938 


    Bank OZK
    Summary of Deposits – By Account Type
    Unaudited
     
      June 30, 2023 December 31, 2022
      (Dollars in thousands)
    Non-interest bearing $4,535,365 18.9% $4,658,451 21.7%
    Interest bearing:        
    Transaction (NOW)  4,208,777 17.5   4,097,532 19.1 
    Savings and money market  4,766,365 19.9   5,808,185 27.0 
    Time deposits  10,472,890 43.7   6,935,975 32.2 
    Total deposits $23,983,397 100.0% $21,500,143 100.0%


    Bank OZK
    Summary of Deposits – By Customer Type
    Unaudited
     
     June 30, 2023 December 31, 2022
     (Dollars in thousands)
    Non-interest bearing$4,535,365 18.9% $4,658,451 21.7%
    Interest bearing:       
    Consumer and commercial:       
    Consumer – Non-Time 3,142,531 13.1   3,916,078 18.2 
    Consumer – Time 7,498,988 31.3   4,936,061 23.0 
    Commercial – Non-Time 2,333,786 9.7   2,741,007 12.7 
    Commercial – Time 621,105 2.6   516,477 2.4 
    Public funds 2,595,415 10.8   2,103,392 9.8 
    Brokered 2,355,647 9.8   2,050,294 9.5 
    Reciprocal 900,560 3.8   578,383 2.7 
    Total deposits$23,983,397 100.0% $21,500,143 100.0%


    Bank OZK
    Selected Consolidated Financial Data
    Unaudited
     
     Three Months Ended
    June 30,    		 Six Months Ended
    June 30,
      2023   2022  %
    Change    		  2023   2022  %
    Change
     (Dollars in thousands, except per share amounts)
    Income statement data:           
    Net interest income$356,824  $265,793  34.2% $701,676  $515,137  36.2%
    Provision for credit losses 41,774   7,025  494.6   77,602   11,215  591.9 
    Non-interest income 31,987   26,320  21.5   59,795   57,796  3.5 
    Non-interest expense 129,355   109,300  18.3   255,571   217,016  17.8 
    Net income 171,965   136,413  26.1   341,878   268,916  27.1 
    Preferred stock dividends 4,047   4,047  —   8,094   8,527  (5.1)
    Net income available to common stockholders 167,917   132,358  26.9   333,771   260,386  28.2 
    Pre-tax pre-provision net revenue (1) 259,456   182,813  41.9   505,900   355,917  42.1 
    Common share and per common share data:           
    Diluted earnings per common share$1.47  $1.10  33.6% $2.88  $2.12  35.8%
    Basic earnings per common share 1.47   1.10  33.6   2.89   2.13  35.7 
    Common stock dividends per share 0.35   0.31  12.9   0.69   0.61  13.1 
    Book value per share 39.51   35.87  10.1   39.51   35.87  10.1 
    Tangible book value per common share (1) 33.67   30.27  11.2   33.67   30.27  11.2 
    Weighted-average diluted shares outstanding (thousands) 114,284   120,827  (5.4)  115,871   122,905  (5.7)
    End of period shares outstanding (thousands) 113,145   118,996  (4.9)  113,145   118,996  (4.9)
    Balance sheet data at period end:           
    Total assets$30,761,870  $25,919,965  18.7% $30,761,870  $25,919,965  18.7%
    Total loans 23,607,446   18,742,718  26.0   23,607,446   18,742,718  26.0 
    Non-purchased loans 23,291,785   18,297,638  27.3   23,291,785   18,297,638  27.3 
    Purchased loans 315,661   445,080  (29.1)  315,661   445,080  (29.1)
    Allowance for loan losses 263,188   190,795  37.9   263,188   190,795  37.9 
    Foreclosed assets 62,048   2,593  2292.9   62,048   2,593  2292.9 
    Investment securities – AFS 3,262,366   3,705,807  (12.0)  3,262,366   3,705,807  (12.0)
    Goodwill and other intangible assets, net 661,166   666,029  (0.7)  661,166   666,029  (0.7)
    Deposits 23,983,397   19,984,187  20.0   23,983,397   19,984,187  20.0 
    Other borrowings 1,104,478   505,221  118.6   1,104,478   505,221  118.6 
    Subordinated notes 347,350   346,536  0.2   347,350   346,536  0.2 
    Subordinated debentures 121,652   121,310  0.3   121,652   121,310  0.3 
    Unfunded balance of closed loans 21,119,761   17,369,767  21.6   21,119,761   17,369,767  21.6 
    Reserve for losses on unfunded loan commitments 163,632   109,143  49.9   163,632   109,143  49.9 
    Preferred stock 338,980   338,980  —   338,980   338,980  — 
    Total common stockholders’ equity 4,470,911   4,267,802  4.8   4,470,911   4,267,802  4.8 
    Net unrealized losses on investment securities AFS included in stockholders’ equity (159,431)  (114,168)    (159,431)  (114,168)  
    Loan (including purchased loans) to deposit ratio 98.43%  93.79%    98.43%  93.79%  
    Selected ratios:           
    Return on average assets (2) 2.27%  2.02%    2.34%  2.00%  
    Return on average common stockholders’ equity (1) (2) 15.14   12.40     15.19   12.03   
    Return on average tangible common stockholders’ equity (1) (2) 17.78   14.69     17.86   14.20   
    Average common equity to total average assets 15.00   16.32     15.38   16.60   
    Net interest margin – FTE (2) 5.32   4.52     5.43   4.38   
    Efficiency ratio 33.05   37.25     33.33   37.73   
    Net charge-offs to average non-purchased loans (2) (3) 0.03   0.03     0.09   0.05   
    Net charge-offs to average total loans (2) 0.15   0.01     0.15   0.00   
    Nonperforming loans to total loans (4) 0.15   0.16     0.15   0.16   
    Nonperforming assets to total assets (4) 0.32   0.12     0.32   0.12   
    Allowance for loan losses to total loans (5) 1.11   1.02     1.11   1.02   
    Allowance for credit losses to total loans and unfunded loan commitments 0.95   0.83     0.95   0.83   
    Other information:           
    Non-accrual loans (4)$35,320  $28,171    $35,320  $28,171   
    Accruing loans - 90 days past due (4) —   —     —   —   

    (1)  Calculations of pre-tax pre-provision net revenue, total common stockholders’ equity, tangible book value per common share and returns on average common stockholders’ equity and average tangible common stockholders’ equity and the reconciliations to GAAP are included in the schedules accompanying this release.
    (2)  Ratios for interim periods annualized based on actual days.
    (3)  Excludes purchased loans and net charge-offs related to such loans.
    (4)  Excludes purchased loans, except for their inclusion in total assets.
    (5)  Excludes reserve for losses on unfunded loan commitments.


    Bank OZK
    Selected Consolidated Financial Data (continued)
    Unaudited
     
     Three Months Ended
     June 30, 2023 March 31, 2023 %
    Change
     (Dollars in thousands, except per share amounts)
    Income statement data:     
    Net interest income$356,824  $344,852  3.5%
    Provision for credit losses 41,774   35,829  16.6 
    Non-interest income 31,987   27,809  15.0 
    Non-interest expense 129,355   126,217  2.5 
    Net income 171,965   169,912  1.2 
    Preferred stock dividends 4,047   4,047  — 
    Net income available to common stockholders 167,917   165,853  1.2 
    Pre-tax pre-provision net revenue (1) 259,456   246,444  5.3 
    Common share and per common share data:     
    Diluted earnings per common share$1.47  $1.41  4.3%
    Basic earnings per common share 1.47   1.42  3.5 
    Common stock dividends per share 0.35   0.34  2.9 
    Book value per share 39.51   38.43  2.8 
    Tangible book value per common share (1) 33.67   32.68  3.0 
    Weighted-average diluted shares outstanding (thousands) 114,284   117,405  (2.7)
    End of period shares outstanding (thousands) 113,145   115,080  (1.7)
    Balance sheet data at period end:     
    Total assets$30,761,870  $28,971,170  6.2%
    Total loans 23,607,446   22,062,006  7.0 
    Non-purchased loans 23,291,785   21,700,941  7.3 
    Purchased loans 315,661   361,065  (12.6)
    Allowance for loan losses 263,188   222,025  18.5 
    Foreclosed assets 62,048   66,227  (6.3)
    Investment securities – AFS 3,262,366   3,422,031  (4.7)
    Goodwill and other intangible assets, net 661,166   662,354  (0.2)
    Deposits 23,983,397   22,282,983  7.6 
    Other borrowings 1,104,478   994,079  11.1 
    Subordinated notes 347,350   347,147  0.1 
    Subordinated debentures 121,652   121,652  — 
    Unfunded balance of closed loans 21,119,761   20,965,040  0.7 
    Reserve for losses on unfunded loan commitments 163,632   171,742  (4.7)
    Preferred stock 338,980   338,980  — 
    Total common stockholders’ equity 4,470,911   4,422,947  1.1 
    Net unrealized losses on investment securities AFS included in stockholders’ equity (159,431)  (141,677)  
    Loan (including purchased loans) to deposit ratio 98.43%  99.01%  
    Selected ratios:     
    Return on average assets (2) 2.27%  2.41%  
    Return on average common stockholders’ equity (1) (2) 15.14   15.24   
    Return on average tangible common stockholders’ equity (1) (2) 17.78   17.94   
    Average common equity to total average assets 15.00   15.78   
    Net interest margin – FTE (2) 5.32   5.54   
    Efficiency ratio 33.05   33.63   
    Net charge-offs to average non-purchased loans (2) (3) 0.03   0.15   
    Net charge-offs to average total loans (2) 0.15   0.14   
    Nonperforming loans to total loans (4) 0.15   0.15   
    Nonperforming assets to total assets (4) 0.32   0.34   
    Allowance for loan losses to total loans (5) 1.11   1.01   
    Allowance for credit losses to total loans and unfunded loan commitments 0.95   0.92   
    Other information:     
    Non-accrual loans (4)$35,320  $33,371   
    Accruing loans – 90 days past due (4) —   —   

    (1)  Calculations of pre-tax pre-provision net revenue, total common stockholders’ equity, tangible book value per common share and returns on average common stockholders’ equity and average tangible common stockholders’ equity and the reconciliations to GAAP are included in the schedules accompanying this release.
    (2)  Ratios for interim periods annualized based on actual days.
    (3)  Excludes purchased loans and net charge-offs related to such loans.
    (4)  Excludes purchased loans, except for their inclusion in total assets.
    (5)  Excludes reserve for losses on unfunded loan commitments.


    Bank OZK
    Supplemental Quarterly Financial Data
    Unaudited
     
     6/30/23 3/31/23 12/31/22 9/30/22 6/30/22
     (Dollars in thousands)
    Earnings summary:         
    Net interest income$356,824  $344,852  $332,488  $294,617  $265,793 
    Federal tax (FTE) adjustment 2,602   2,603   2,383   2,151   1,300 
    Net interest income (FTE) 359,426   347,455   334,871   296,768   267,093 
    Provision for credit losses (41,774)  (35,829)  (32,508)  (39,771)  (7,025)
    Non-interest income 31,987   27,809   27,544   29,163   26,320 
    Non-interest expense (129,355)  (126,217)  (119,013)  (115,691)  (109,300)
    Pre-tax income (FTE) 220,284   213,218   210,894   170,469   177,088 
    FTE adjustment (2,602)  (2,603)  (2,383)  (2,151)  (1,300)
    Provision for income taxes (45,717)  (40,703)  (45,686)  (35,969)  (39,375)
    Noncontrolling interest (1)  (12)  54   —   (8)
    Preferred stock dividend (4,047)  (4,047)  (4,047)  (4,047)  (4,047)
    Net income available to common stockholders$167,917  $165,853  $158,832  $128,302  $132,358 
    Earnings per common share – diluted$1.47  $1.41  $1.34  $1.08  $1.10 
    Pre-tax pre-provision net revenue (1)$259,456  $246,444  $241,019  $208,089  $182,813 
    Selected balance sheet data at period end:         
    Total assets$30,761,870  $28,971,170  $27,656,568  $26,232,119  $25,919,965 
    Non-purchased loans 23,291,785   21,700,941   20,400,154   19,103,546   18,297,638 
    Purchased loans 315,661   361,065   378,637   410,166   445,080 
    Investment securities – AFS 3,262,366   3,422,031   3,491,613   3,528,077   3,705,807 
    Deposits 23,983,397   22,282,983   21,500,143   20,401,876   19,984,187 
    Unfunded balance of closed loans 21,119,761   20,965,040   21,062,733   20,091,101   17,369,767 
    Allowance for credit losses:         
    Balance at beginning of period$393,767  $365,277  $335,635  $299,938  $293,540 
    Net charge-offs (8,721)  (7,339)  (2,866)  (4,074)  (627)
    Provision for credit losses 41,774   35,829   32,508   39,771   7,025 
    Balance at end of period$426,820  $393,767  $365,277  $335,635  $299,938 
    Allowance for loan losses$263,188  $222,025  $208,858  $200,098  $190,795 
    Reserve for losses on unfunded loan commitments 163,632   171,742   156,419   135,537   109,143 
    Total allowance for credit losses$426,820  $393,767  $365,277  $335,635  $299,938 
    Selected ratios:         
    Net interest margin – FTE (2) 5.32%  5.54%  5.46%  5.03%  4.52%
    Efficiency ratio 33.05   33.63   32.84   35.50   37.25 
    Net charge-offs to average non-purchased loans (2) (3) 0.03   0.15   0.09   0.09   0.03 
    Net charge-offs to average total loans (2) 0.15   0.14   0.06   0.09   0.01 
    Nonperforming loans to total loans (4) 0.15   0.15   0.22   0.14   0.16 
    Nonperforming assets to total assets (4) 0.32   0.34   0.19   0.13   0.12 
    Allowance for loan losses to total loans (5) 1.11   1.01   1.01   1.03   1.02 
    Allowance for credit losses to total loans and unfunded loan commitments 0.95   0.92   0.87   0.85   0.83 
    Loans past due 30 days or more, including past due non-accrual loans, to total loans (4) 0.14   0.15   0.13   0.11   0.11 

    (1)  Calculations of pre-tax pre-provision net revenue and the reconciliation to GAAP are included in the schedules accompanying this release.
    (2)  Ratios for interim periods annualized based on actual days.
    (3)  Excludes purchased loans and net charge-offs related to such loans.
    (4)  Excludes purchased loans, except for their inclusion in total assets.
    (5)  Excludes reserve for losses on unfunded loan commitments.


    Bank OZK
    Average Consolidated Balance Sheets and Net Interest Analysis – FTE
    Unaudited
     
     Three Months Ended June 30, Six Months Ended June 30,
      2023   2022   2023   2022 
     Average Balance Income/ Expense Yield/Rate Average Balance Income/ Expense Yield/Rate Average Balance Income/ Expense Yield/Rate Average Balance Income/ Expense Yield/Rate
     (Dollars in thousands)
    ASSETS
    Interest earning assets:                       
    Interest earning deposits and federal funds sold$957,439 $11,407 4.78% $1,019,374 $1,855 0.73% $849,082 $19,277 4.58% $1,188,502 $2,464 0.42%
    Investment securities:                       
    Taxable 2,363,265  9,704 1.65   3,060,097  10,367 1.36   2,406,769  19,875 1.67   3,218,475  20,978 1.31 
    Tax-exempt – FTE 1,040,757  12,011 4.63   637,235  5,088 3.20   1,034,317  23,738 4.63   604,295  8,868 2.96 
    Non-purchased loans – FTE 22,368,771  472,604 8.47   18,535,726  256,495 5.55   21,613,844  887,640 8.28   18,346,228  496,714 5.46 
    Purchased loans 346,696  5,322 6.16   464,655  8,982 7.75   358,725  11,840 6.66   481,941  17,152 7.18 
    Total earning assets – FTE 27,076,928  511,048 7.57   23,717,087  282,787 4.78   26,262,737  962,370 7.39   23,839,441  546,176 4.62 
    Non-interest earning assets 2,587,338      2,507,837      2,552,387      2,453,085    
    Total assets$29,664,266     $26,224,924     $28,815,124     $26,292,526    
    LIABILITIES AND STOCKHOLDERS’ EQUITY
    Interest bearing liabilities:                       
    Deposits:                       
    Savings and interest bearing transaction$9,075,132 $48,650 2.15% $9,697,128 $5,379 0.22% $9,402,496 $91,164 1.96% $9,610,145 $8,162 0.17%
    Time deposits 9,650,599  87,472 3.64   5,404,880  5,476 0.41   8,612,573  138,590 3.24   5,581,955  11,185 0.40 
    Total interest bearing deposits 18,725,731  136,122 2.92   15,102,008  10,855 0.29   18,015,069  229,754 2.57   15,192,100  19,347 0.26 
    Other borrowings 828,644  10,591 5.13   670,599  1,042 0.62   648,870  16,013 4.98   713,121  2,039 0.58 
    Subordinated notes 347,251  2,603 3.01   346,426  2,603 3.01   347,151  5,177 3.01   346,327  5,177 3.01 
    Subordinated debentures 121,652  2,306 7.60   121,234  1,195 3.95   121,645  4,545 7.54   121,166  2,159 3.59 
    Total interest bearing liabilities 20,023,278  151,622 3.04   16,240,267  15,695 0.39   19,132,735  255,489 2.69   16,372,714  28,722 0.35 
    Non-interest bearing liabilities:                       
    Non-interest bearing deposits 4,348,639      4,970,380      4,409,684      4,872,646    
    Other non-interest bearing liabilities 502,394      392,126      501,203      340,854    
    Total liabilities 24,874,311      21,602,773      24,043,622      21,586,214    
    Total stockholders’ equity before
    noncontrolling interest    		 4,788,584      4,619,033      4,770,135      4,703,196    
    Noncontrolling interest 1,371      3,118      1,367      3,116    
    Total liabilities and stockholders’ equity$29,664,266     $26,224,924     $28,815,124     $26,292,526    
    Net interest income – FTE  $359,427     $267,092     $706,881     $517,454  
    Net interest margin – FTE    5.32%     4.52%     5.43%     4.38%
    Core spread (1)    5.55%     5.26%     5.71%     5.20%

    (1) Core spread is the difference between the yield on the Bank’s non-purchased loans-FTE and the rate on its interest bearing deposits.


    Bank OZK
    Reconciliation of Non-GAAP Financial Measures
     
    Calculation of Average Common Stockholders’ Equity,
    Average Tangible Common Stockholders’ Equity
    and the Annualized Returns on Average Common Stockholders’ Equity and
    Average Tangible Common Stockholders’ Equity
     
    Unaudited
     
     Three Months Ended Six Months Ended
     June 30, June 30, March 31, June 30, June 30,
     2023 2022 2023 2023 2022
     (Dollars in thousands)
    Net income available to common stockholders$167,917  $132,358  $165,853  $333,771  $260,386 
    Average stockholders’ equity before noncontrolling interest$4,788,584  $4,619,033  $4,751,481  $4,770,135  $4,703,196 
    Less average preferred stock (338,980)  (338,980)  (338,980)  (338,980)  (338,980)
    Total average common stockholders’ equity 4,449,604   4,280,053   4,412,501   4,431,155   4,364,216 
    Less average intangible assets:         
    Goodwill (660,789)  (660,789)  (660,789)  (660,789)  (660,789)
    Core deposit and other intangible assets, net of accumulated amortization (999)  (6,084)  (2,243)  (1,618)  (6,824)
    Total average intangibles (661,788)  (666,873)  (663,032)  (662,407)  (667,613)
    Average tangible common stockholders’ equity$3,787,816  $3,613,180  $3,749,469  $3,768,748  $3,696,603 
    Return on average common stockholders’ equity(1) 15.14%  12.40%  15.24%  15.19%  12.03%
    Return on average tangible common stockholders’ equity(1) 17.78%  14.69%  17.94%  17.86%  14.20%

    (1) Ratios for interim periods annualized based on actual days.


    Calculation of Total Common Stockholders’ Equity,
    Total Tangible Common Stockholders’ Equity
    and Tangible Book Value per Common Share
    Unaudited
     
     June 30, December 31,
      2023   2022   2022 
     (In thousands, except per share amounts)
    Total stockholders’ equity before noncontrolling interest$4,809,891  $4,606,782  $4,689,579 
    Less preferred stock (338,980)  (338,980)  (338,980)
    Total common stockholders’ equity$4,470,911  $4,267,802  $4,350,599 
    Less intangible assets:     
    Goodwill (660,789)  (660,789)  (660,789)
    Core deposit and other intangible assets, net of
       accumulated amortization    		 (377)  (5,240)  (2,754)
    Total intangibles (661,166)  (666,029)  (663,543)
    Total tangible common stockholders’ equity$3,809,745  $3,601,773  $3,687,056 
    Shares of common stock outstanding 113,145   118,996   117,177 
    Book value per common share$39.51  $35.87  $37.13 
    Tangible book value per common share$33.67  $30.27  $31.47 


    Calculation of Total Common Stockholders’ Equity,
    Total Tangible Common Stockholders’ Equity
    and the Ratio of Total Tangible Common Stockholders’ Equity
    to Total Tangible Assets
    Unaudited
     
     June 30,
     2023 2022
     (Dollars in thousands)
    Total stockholders’ equity before noncontrolling interest$4,809,891  $4,606,782 
    Less preferred stock (338,980)  (338,980)
    Total common stockholders’ equity$4,470,911  $4,267,802 
    Less intangible assets:   
    Goodwill (660,789)  (660,789)
    Core deposit and other intangible assets, net of accumulated amortization (377)  (5,240)
    Total intangibles (661,166)  (666,029)
    Total tangible common stockholders’ equity 3,809,745   3,601,773 
    Total assets$30,761,870  $25,919,965 
    Less intangible assets:   
    Goodwill$(660,789) $(660,789)
    Core deposit and other intangible assets, net of accumulated amortization (377)  (5,240)
    Total intangibles$(661,166) $(666,029)
    Total tangible assets$30,100,704  $25,253,936 
    Ratio of total common stockholders’ equity to total assets 14.53%  16.47%
    Ratio of total tangible common stockholders’ equity to total tangible assets 12.66%  14.26%


    Calculation of Pre-Tax Pre-Provision Net Revenue
    Unaudited
     
     Three Months Ended Six Months Ended
     June 30, March 31, December 31, September 30, June 30, June 30, June 30,
     2023 2023  2022  2022 2022 2023 2022
     (Dollars in thousands)    
    Net income available to common stockholders$167,917 $165,853 $158,832  $128,302 $132,358 $333,771 $260,386
    Preferred stock dividends 4,047  4,047  4,047   4,047  4,047  8,094  8,527
    Earnings attributable to noncontrolling interest 1  12  (54)  —  8  13  3
    Provision for income taxes 45,717  40,703  45,686   35,969  39,375  86,420  75,786
    Provision for credit losses 41,774  35,829  32,508   39,771  7,025  77,602  11,215
    Pre-tax pre-provision net revenue$259,456 $246,444 $241,019  $208,089 $182,813 $505,900 $355,917


    Investor Contact: Jay Staley (501) 906-7842
    Media Contact: Michelle Rossow (501) 906-3922

     


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