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Bank OZK Announces Third Quarter 2021 Earnings
来源: Nasdaq GlobeNewswire / 21 10月 2021 15:01:01 America/Chicago
LITTLE ROCK, Ark., Oct. 21, 2021 (GLOBE NEWSWIRE) -- Bank OZK (the “Bank”) (Nasdaq: OZK) today announced that net income for the third quarter of 2021 was $130.3 million, a 19.3% increase from $109.3 million for the third quarter of 2020. Diluted earnings per common share for the third quarter of 2021 were $1.00, a 19.0% increase from $0.84 for the third quarter of 2020.
For the nine months ended September 30, 2021, net income was $429.2 million, a 150.5% increase from $171.4 million for the first nine months of 2020. Diluted earnings per common share for the first nine months of 2021 were $3.30, a 150.0% increase from $1.32 for the first nine months of 2020.
As a result of improved economic conditions and prospects for improvement in the U.S. economy, management recorded negative provision for credit losses of $7.5 million during the third quarter and $69.9 million during the first nine months of 2021, reducing the Bank’s total allowance for credit losses (“ACL”) from $377.3 million at December 31, 2020 to $298.8 million at September 30, 2021. The Bank’s provision for credit losses was $7.2 million during the third quarter and $196.9 million during the first nine months of 2020, reflecting significant economic uncertainty at that time.
The Bank’s results for the first nine months of 2021 included pretax gains of $4.4 million from the sale of its South Carolina branches and $1.4 million of tax-exempt bank-owned life insurance (“BOLI”) death benefits, both of which were recognized during the first quarter of 2021. The Bank had no gains from branch sales and had $0.6 million of tax-exempt BOLI death benefits during the first nine months of 2020.
Pre-tax pre-provision net revenue (“PPNR”) was $163.5 million for the third quarter of 2021, a 12.3% increase from $145.7 million for the third quarter of 2020. For the nine months ended September 30, 2021, PPNR was $489.0 million, a 17.3% increase from $417.0 million for the first nine months of 2020. The calculation of PPNR and the reconciliation to generally accepted accounting principles (“GAAP”) are included in the schedules accompanying this release.
The Bank’s annualized returns on average assets, average common stockholders’ equity and average tangible common stockholders’ equity for the third quarter of 2021 were 1.98%, 11.41% and 13.39%, respectively, compared to 1.63%, 10.48% and 12.52%, respectively, for the third quarter of 2020. The Bank’s annualized returns on average assets, average common stockholder’s equity and average tangible common stockholders’ equity for the first nine months of 2021 were 2.15%, 12.98% and 15.31%, respectively, compared to 0.90%, 5.55%, and 6.65%, respectively, for the first nine months of 2020. The calculation of the Bank’s return on average tangible common stockholders’ equity and the reconciliation to GAAP are included in the schedules accompanying this release.
George Gleason, Chairman and Chief Executive Officer stated, “We are pleased to report our highest level of quarterly RESG loan originations since 2017 along with record net interest income for the quarter just ended. Our strong capital and liquidity, disciplined credit culture and outstanding team have us well positioned for the future.”
KEY BALANCE SHEET METRICS
Total loans were $18.31 billion at September 30, 2021, a 5.4% decrease from $19.36 billion at September 30, 2020. Non-purchased loans were $17.71 billion at September 30, 2021, a 3.9% decrease from $18.42 billion at September 30, 2020, but a 0.5% increase from $17.61 billion at June 30, 2021. Purchased loans, which consist of loans acquired in previous acquisitions, were $0.60 billion at September 30, 2021, a 36.3% decrease from $0.94 billion at September 30, 2020.
Deposits were $20.10 billion at September 30, 2021, a 5.6% decrease from $21.29 billion at September 30, 2020. Total assets were $26.14 billion at September 30, 2021, a 2.8% decrease from $26.89 billion at September 30, 2020.
Common stockholders’ equity was $4.55 billion at September 30, 2021, an 8.8% increase from $4.19 billion at September 30, 2020. Tangible common stockholders’ equity was $3.88 billion at September 30, 2021, a 10.6% increase from $3.51 billion at September 30, 2020. Book value per common share was $35.35 at September 30, 2021, a 9.2% increase from $32.37 at September 30, 2020. Tangible book value per common share was $30.14 at September 30, 2021, an 11.1% increase from $27.13 at September 30, 2020. The calculations of the Bank’s tangible common stockholders’ equity and tangible book value per common share and the reconciliations to GAAP are included in the schedules accompanying this release.
The Bank’s ratio of total common stockholders’ equity to total assets was 17.42% at September 30, 2021 compared to 15.57% at September 30, 2020. Its ratio of total tangible common stockholders’ equity to total tangible assets was 15.24% at September 30, 2021 compared to 13.39% at September 30, 2020. The calculation of the Bank’s ratio of total tangible common stockholders’ equity to total tangible assets and the reconciliation to GAAP are included in the schedules accompanying this release.
SUBORDINATED DEBT REDEMPTION AND OFFERING
On July 1, 2021, the Bank redeemed all of its $225 million of 5.50% Fixed-to-Floating rate Subordinated Notes at a redemption price equal to 100% of the principal amount of the subordinated notes plus accrued and unpaid interest. As a result of the subordinated debt redemption, the Bank recognized approximately $0.8 million in remaining unamortized debt issue cost as non-interest expense during the third quarter of 2021.
On September 16, 2021, the Bank completed its public offering of $350 million in aggregate principal amount of its 2.75% Fixed-to-Floating rate Subordinated Notes (the “2.75% Notes”) due 2031, which will initially bear interest at a fixed rate of 2.75% per annum until September 30, 2026. On October 1, 2026, the 2.75% Notes will bear interest at a floating rate equal to a benchmark (which is expected to be three-month SOFR) plus 209 basis points. The 2.75% Notes are unsecured, subordinated debt obligations and mature on October 1, 2031, and the Bank expects to use the net proceeds from the offering for general corporate purposes, which may include, among other things, financing organic growth or strategic acquisitions, repurchase of shares of the Bank’s common stock, supporting the Bank’s regulatory capital levels and ongoing working capital needs. As of September 30, 2021, the Bank’s subordinated debt had a carrying value of $345.9 million and remaining unamortized debt issuance cost of $4.1 million.
STOCK REPURCHASE PROGRAM
In July 2021, the Bank adopted a stock repurchase program authorizing the purchase of up to $300 million of the Bank’s outstanding shares of common stock. During the quarter just ended, the Bank repurchased 888,567 shares at a weighted average cost of $41.61, for a total of $37.0 million. The timing and amount of future repurchases will be determined by management based on a variety of factors such as the Bank’s capital position, liquidity, financial performance and alternative uses of capital, stock price, regulatory requirements and general market and economic conditions. The repurchase program may be suspended by the Bank at any time.
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 on these quarterly results and management’s comments at 10:00 a.m. CT (11:00 a.m. ET) on October 22, 2021. Interested parties may listen to this call by dialing 1-844-818-5110 (U.S. and Canada) or 210-229-8841 (internationally) and asking for the Bank OZK conference call. A recorded playback of the call will be available for one week following the call at 1-855-859-2056 (U.S. and Canada) or 404-537-3406 (internationally). The conference ID for this playback is 8870579. The call will be available live or in a recorded version on the Bank’s Investor Relations website at ir.ozk.com under “Company News/Webcasts.” The Bank will also provide a transcript of the conference call on its Investor Relations website.
The Bank files with the Federal Deposit Insurance Corporation (“FDIC”) annual, quarterly and current reports, proxy materials and other information required by the Securities Exchange Act of 1934, 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 http://ir.ozk.com. To receive automated email alerts for these materials, please visit http://ir.ozk.com/EmailNotification 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 tangible common stockholders’ equity, tangible book value per common share, 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 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 implementing the Bank’s growth, expansion and acquisition strategies, including delays in identifying satisfactory sites, hiring or retaining qualified personnel, obtaining regulatory or other approvals, obtaining permits and designing, constructing and opening new offices or relocating, selling or closing existing offices; the ability to enter into and/or close additional acquisitions; 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 or acquired 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; the potential impact of the phase-out of the London Interbank Offered Rate (“LIBOR”) or other changes involving LIBOR; 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; changes in legal, financial and/or regulatory requirements; recently enacted and potential legislation and regulatory actions and the costs and expenses to comply with new and/or existing legislation and regulatory actions, including those in response to the COVID-19 pandemic such as the Coronavirus Aid, Relief and Economic Security Act, the Consolidated Appropriations Act of 2021, the American Rescue Plan Act of 2021, and any similar or related laws, rules and regulations; the impact of any future federal government shutdown and uncertainty regarding the federal government’s debt limit or 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 maintaining cybersecurity; the impact of failure in, or breach of, the Bank’s operational or security systems or infrastructure, or those of third parties with whom it does business, including as a result of cyber-attacks 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 or acts of war or terrorism; the adverse effects of the COVID-19 pandemic, including the duration of the pandemic and actions taken to contain or treat COVID-19, on the Bank, the Bank’s customers, the Bank’s staff, the global economy and financial markets; potential impact of supply chain disruptions; national, international or political instability; impairment of the Bank’s goodwill or other intangible assets; 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 press release or as detailed from time to time in the other public reports the Bank files with the FDIC, including those factors described in the disclosures under the headings “Forward-Looking Information” and “Item 1A. Risk Factors” in the Bank’s most recent Annual Report on Form 10-K for the year ended December 31, 2020 and its 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 projected 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. Headquartered in Little Rock, Arkansas, Bank OZK conducts operations through 249 offices in eight states, including Arkansas, Georgia, Florida, North Carolina, Texas, California, New York and Mississippi. 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
UnauditedSeptember 30, December 31, 2021 2020 (Dollars in thousands, except per share amounts) ASSETS Cash and cash equivalents $ 1,782,503 $ 2,393,662 Investment securities ― available for sale ("AFS") 3,846,496 3,405,351 Federal Home Loan Bank of Dallas and other bankers' bank stocks 40,698 38,486 Non-purchased loans 17,707,452 18,401,495 Purchased loans 597,851 807,673 Allowance for loan losses (237,722 ) (295,824 ) Net loans 18,067,581 18,913,344 Premises and equipment, net 699,427 738,842 Foreclosed assets 9,444 11,085 Accrued interest receivable 84,358 88,077 Bank owned life insurance (“BOLI”) 770,829 758,071 Goodwill and other intangible assets, net 670,580 675,458 Other, net 171,451 140,220 Total assets $ 26,143,367 $ 27,162,596 LIABILITIES AND STOCKHOLDERS’ EQUITY Deposits: Demand non-interest bearing $ 4,586,163 $ 3,996,546 Savings and interest bearing transaction 8,961,316 8,160,982 Time 6,554,961 9,292,828 Total deposits 20,102,440 21,450,356 Repurchase agreements with customers 7,735 8,013 Other borrowings 750,217 750,928 Subordinated notes 345,927 224,047 Subordinated debentures 120,892 120,475 Reserve for losses on unfunded loan commitments 61,076 81,481 Accrued interest payable and other liabilities 198,728 251,940 Total liabilities 21,587,015 22,887,240 Commitments and contingencies Stockholders’ equity: Preferred stock; $0.01 par value; 100,000,000 shares authorized; no shares issued or outstanding at September 30, 2021 or December 31, 2020 — — Common stock; $0.01 par value; 300,000,000 shares authorized; 128,817,819 and 129,350,448 shares issued and outstanding at September 30, 2021 and December 31, 2020, respectively 1,288 1,294 Additional paid-in capital 2,245,012 2,265,850 Retained earnings 2,266,234 1,946,875 Accumulated other comprehensive income 40,706 58,252 Total stockholders’ equity before noncontrolling interest 4,553,240 4,272,271 Noncontrolling interest 3,112 3,085 Total stockholders’ equity 4,556,352 4,275,356 Total liabilities and stockholders’ equity $ 26,143,367 $ 27,162,596 Bank OZK
Consolidated Statements of Income
UnauditedThree Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 (Dollars in thousands, except per share amounts) Interest income: Non-purchased loans $ 238,258 $ 236,621 $ 716,639 $ 701,290 Purchased loans 11,350 16,269 34,985 54,743 Investment securities: Taxable 9,236 9,666 26,786 31,480 Tax-exempt 3,296 5,193 10,860 14,636 Deposits with banks and federal funds sold 523 532 1,556 5,237 Total interest income 262,663 268,281 790,826 807,386 Interest expense: Deposits 12,326 38,273 54,908 141,206 Repurchase agreements with customers 4 4 14 17 Other borrowings 1,013 1,156 2,996 2,168 Subordinated notes 429 3,207 6,755 9,551 Subordinated debentures 934 984 2,814 3,420 Total interest expense 14,706 43,624 67,487 156,362 Net interest income 247,957 224,657 723,339 651,024 Provision for credit losses (7,454 ) 7,200 (69,946 ) 196,889 Net interest income after provision for credit losses 255,411 217,457 793,285 454,135 Non-interest income: Service charges on deposit accounts 11,177 9,427 31,154 27,717 Trust income 2,247 1,936 6,365 5,635 BOLI income: Increase in cash surrender value 4,940 5,081 14,739 15,205 Death benefits — — 1,409 608 Loan service, maintenance and other fees 3,307 3,351 10,811 10,461 Gains on sales of other assets 463 891 8,632 1,674 Net gains on investment securities — 2,244 — 4,467 Other 3,850 3,746 12,733 10,180 Total non-interest income 25,984 26,676 85,843 75,947 Non-interest expense: Salaries and employee benefits 53,769 53,119 159,533 153,003 Net occupancy and equipment 17,161 16,676 49,797 47,761 Other operating expenses 39,467 35,846 110,840 109,255 Total non-interest expense 110,397 105,641 320,170 310,019 Income before taxes 170,998 138,492 558,958 220,063 Provision for income taxes 40,713 29,251 129,691 48,707 Net income 130,285 109,241 429,267 171,356 Earnings attributable to noncontrolling interest 5 12 (27 ) 29 Net income available to common stockholders $ 130,290 $ 109,253 $ 429,240 $ 171,385 Basic earnings per common share $ 1.01 $ 0.84 $ 3.31 $ 1.33 Diluted earnings per common share $ 1.00 $ 0.84 $ 3.30 $ 1.32 Bank OZK
Consolidated Statements of Stockholders’ Equity
UnauditedCommon
StockAdditional
Paid-In
CapitalRetained
EarningsAccumulated
Other
Comprehensive
IncomeNon-
Controlling
InterestTotal (Dollars in thousands, except per share amounts) Three months ended September 30, 2021: Balances – June 30, 2021 $ 1,297 $ 2,277,138 $ 2,173,114 $ 50,127 $ 3,117 $ 4,504,793 Net income — — 130,285 — — 130,285 Earnings attributable to noncontrolling interest — — 5 — (5 ) — Total other comprehensive loss — — — (9,421 ) — (9,421 ) Common stock dividends, $0.285 per share — — (37,170 ) — — (37,170 ) Issuance of 33,850 shares of common stock for exercise of stock options 1 1,085 — — — 1,086 Repurchase and cancellation of 888,567 shares of common stock (9 ) (36,990 ) — — — (36,999 ) Stock-based compensation expense — 3,778 — — — 3,778 Forfeitures of 47,604 shares of unvested restricted common stock (1 ) 1 — — — — Balances – September 30, 2021 $ 1,288 $ 2,245,012 $ 2,266,234 $ 40,706 $ 3,112 $ 4,556,352 Nine months ended September 30, 2021: Balances – December 31, 2020 $ 1,294 $ 2,265,850 $ 1,946,875 $ 58,252 $ 3,085 $ 4,275,356 Net income — — 429,267 — — 429,267 Earnings attributable to noncontrolling interest — — (27 ) — 27 — Total other comprehensive loss — — — (17,546 ) — (17,546 ) Common stock dividends, $0.8425 per share — — (109,881 ) — — (109,881 ) Issuance of 176,250 shares of common stock for exercise of stock options 2 6,092 — — — 6,094 Issuance of 332,831 shares of unvested restricted common stock 3 (3 ) — — — — Repurchase and cancellation of 944,460 shares of common stock (10 ) (38,966 ) — — — (38,976 ) Stock-based compensation expense — 12,038 — — — 12,038 Forfeitures of 97,250 shares of unvested restricted common stock (1 ) 1 — — — — Balances – September 30, 2021 $ 1,288 $ 2,245,012 $ 2,266,234 $ 40,706 $ 3,112 $ 4,556,352 Bank OZK
Consolidated Statements of Stockholders’ Equity
UnauditedCommon
StockAdditional
Paid-In
CapitalRetained
EarningsAccumulated
Other
Comprehensive
IncomeNon-
Controlling
InterestTotal (Dollars in thousands, except per share amounts) Three months ended September 30, 2020: Balances – June 30, 2020 $ 1,293 $ 2,257,867 $ 1,788,329 $ 63,177 $ 3,100 $ 4,113,766 Net income — — 109,241 — — 109,241 Earnings attributable to noncontrolling interest — — 12 — (12 ) — Total other comprehensive loss — — — (2,061 ) — (2,061 ) Common stock dividends, $0.2725 per share — — (35,570 ) — — (35,570 ) Stock-based compensation expense — 3,997 — — — 3,997 Forfeitures of 8,228 shares of unvested restricted common stock — — — — — — Balances – September 30, 2020 $ 1,293 $ 2,261,864 $ 1,862,012 $ 61,116 $ 3,088 $ 4,189,373 Nine months ended September 30, 2020: Balances – December 31, 2019 $ 1,289 $ 2,251,824 $ 1,869,983 $ 27,255 $ 3,117 $ 4,153,468 Cumulative effect of change in accounting principle — — (75,344 ) — — (75,344 ) Balances – January 1, 2020 1,289 2,251,824 1,794,639 27,255 3,117 4,078,124 Net income — — 171,356 — — 171,356 Earnings attributable to noncontrolling interest — — 29 — (29 ) — Total other comprehensive income — — — 33,861 — 33,861 Common stock dividends, $0.8025 per share — — (104,012 ) — — (104,012 ) Issuance of 4,300 shares of common stock for exercise of stock options — 45 — — — 45 Issuance of 493,761 shares of unvested restricted common stock 5 (5 ) — — — — Repurchase and cancellation of 61,873 shares of common stock (1 ) (1,852 ) — — — (1,853 ) Stock-based compensation expense — 11,852 — — — 11,852 Forfeitures of 45,139 shares of unvested restricted common stock — — — — — — Balances – September 30, 2020 $ 1,293 $ 2,261,864 $ 1,862,012 $ 61,116 $ 3,088 $ 4,189,373 Bank OZK
Summary of Non-Interest Expense
UnauditedThree Months Ended
September 30,Nine Months Ended
September 30,2021 2020 2021 2020 (Dollars in thousands) Salaries and employee benefits $ 53,769 $ 53,119 $ 159,533 $ 153,003 Net occupancy and equipment 17,161 16,676 49,797 47,761 Other operating expenses: Professional and outside services 7,084 8,263 21,134 22,618 Software and data processing 5,897 5,431 17,695 15,550 Deposit insurance and assessments 2,655 3,595 9,060 11,600 Telecommunication services 1,966 2,352 6,363 6,863 Postage and supplies 1,530 1,808 4,718 5,753 ATM expense 1,846 1,604 4,615 3,766 Travel and meals 1,617 689 3,811 3,501 Writedowns of foreclosed and other assets 990 488 2,476 2,087 Loan collection and repossession expense 407 1,030 1,456 2,581 Advertising and public relations 719 1,557 1,621 4,964 Amortization of intangibles 1,545 1,914 4,878 7,291 Amortization of CRA and tax credit investments 4,972 1,611 12,324 7,458 Other 8,239 5,504 20,689 15,223 Total non-interest expense $ 110,397 $ 105,641 $ 320,170 $ 310,019 Bank OZK
Summary of Total Loans Outstanding
UnauditedSeptember 30, 2021 December 31, 2020 (Dollars in thousands) Real estate: Residential 1-4 family $ 887,769 4.8 % $ 911,115 4.7 % Non-farm/non-residential 4,080,616 22.3 4,267,147 22.2 Construction/land development 7,718,567 42.2 7,993,467 41.6 Agricultural 237,073 1.3 204,868 1.1 Multifamily residential 1,242,202 6.8 856,297 4.5 Total real estate 14,166,227 77.4 14,232,894 74.1 Commercial and industrial 528,866 2.9 842,206 4.4 Consumer 2,168,307 11.8 2,393,964 12.5 Other 1,441,903 7.9 1,740,104 9.0 Total loans 18,305,303 100.0 % 19,209,168 100.0 % Allowance for loan losses (237,722 ) (295,824 ) Net loans $ 18,067,581 $ 18,913,344 Bank OZK
Allowance for Credit Losses
UnauditedAllowance for Loan Losses Reserve for Losses on Unfunded Loan Commitments Total Allowance for Credit Losses (Dollars in thousands) Three months ended September 30, 2021: Balances – June 30, 2021 $ 248,753 $ 58,811 $ 307,564 Net charge-offs (1,312 ) — (1,312 ) Provision for credit losses (9,719 ) 2,265 (7,454 ) Balances – September 30, 2021 $ 237,722 $ 61,076 $ 298,798 Nine months ended September 30, 2021: Balances – December 31, 2020 $ 295,824 $ 81,481 $ 377,305 Net charge-offs (8,561 ) — (8,561 ) Provision for credit losses (49,541 ) (20,405 ) (69,946 ) Balances – September 30, 2021 $ 237,722 $ 61,076 $ 298,798 Three months ended September 30, 2020: Balances – June 30, 2020 $ 306,196 $ 68,298 $ 374,494 Net charge-offs (4,421 ) — (4,421 ) Provision for credit losses 7,072 128 7,200 Balances – September 30, 2020 $ 308,847 $ 68,426 $ 377,273 Nine months ended September 30, 2020: Balances – December 31, 2019 $ 108,525 $ — $ 108,525 Adoption of CECL(1) methodology 39,588 54,924 94,512 Balances – January 1, 2020 148,113 54,924 203,037 Net charge-offs (22,653 ) — (22,653 ) Provision for credit losses 183,387 13,502 196,889 Balances – September 30, 2020 $ 308,847 $ 68,426 $ 377,273 (1) Current Expected Credit Loss.
Bank OZK
Summary of Deposits – By Account Type
UnauditedSeptember 30, 2021 December 31, 2020 (Dollars in thousands) Non-interest bearing $ 4,586,163 22.8 % $ 3,996,546 18.6 % Interest bearing: Transaction (NOW) 3,188,840 15.9 3,124,007 14.6 Savings and money market 5,772,476 28.7 5,036,975 23.5 Time deposits less than $100 1,994,503 9.9 3,075,845 14.3 Time deposits of $100 or more 4,560,458 22.7 6,216,983 29.0 Total deposits $ 20,102,440 100.0 % $ 21,450,356 100.0 % Summary of Deposits – By Customer Type
UnauditedSeptember 30, 2021 December 31, 2020 (Dollars in thousands) Consumer $ 10,186,211 50.7 % $ 11,165,603 52.1 % Commercial 6,502,287 32.3 6,056,536 28.2 Public Funds 2,028,243 10.1 2,111,971 9.8 Brokered 894,791 4.5 1,600,116 7.5 Reciprocal 490,908 2.4 516,130 2.4 Total deposits $ 20,102,440 100.0 % $ 21,450,356 100.0 % Bank OZK
Selected Consolidated Financial Data
UnauditedThree Months Ended
September 30,Nine Months Ended
September 30,2021 2020 % Change 2021 2020 % Change (Dollars in thousands, except per share amounts) Income statement data: Net interest income $ 247,957 $ 224,657 10.4 % $ 723,339 $ 651,024 11.1 % Provision for credit losses (7,454 ) 7,200 (203.5 ) (69,946 ) 196,889 (135.5 ) Non-interest income 25,984 26,676 (2.6 ) 85,843 75,947 13.0 Non-interest expense 110,397 105,641 4.5 320,170 310,019 3.3 Net income available to common stockholders 130,290 109,253 19.3 429,240 171,385 150.5 Pre-tax pre-provision net revenue(1) 163,544 145,692 12.3 489,012 416,952 17.3 Common share and per common share data: Earnings per share − diluted $ 1.00 $ 0.84 19.0 % $ 3.30 $ 1.32 150.0 % Earnings per share − basic 1.01 0.84 20.2 3.31 1.33 148.9 Dividends per share 0.285 0.2725 4.6 0.8425 0.8025 5.0 Book value per share 35.35 32.37 9.2 35.35 32.37 9.2 Tangible book value per share(1) 30.14 27.13 11.1 30.14 27.13 11.1 Weighted-average diluted shares outstanding (thousands) 129,929 129,470 0.4 130,063 129,398 0.5 End of period shares outstanding (thousands) 128,818 129,342 (0.4 ) 128,818 129,342 (0.4 ) Balance sheet data at period end: Total assets $ 26,143,367 $ 26,888,308 (2.8 )% $ 26,143,367 $ 26,888,308 (2.8 )% Total loans 18,305,303 19,358,443 (5.4 ) 18,305,303 19,358,443 (5.4 ) Non-purchased loans 17,707,452 18,419,958 (3.9 ) 17,707,452 18,419,958 (3.9 ) Purchased loans 597,851 938,485 (36.3 ) 597,851 938,485 (36.3 ) Allowance for loan losses 237,722 308,847 (23.0 ) 237,722 308,847 (23.0 ) Foreclosed assets 9,444 16,543 (42.9 ) 9,444 16,543 (42.9 ) Investment securities − AFS 3,846,496 3,468,243 10.9 3,846,496 3,468,243 10.9 Goodwill and other intangible assets, net 670,580 677,251 (1.0 ) 670,580 677,251 (1.0 ) Deposits 20,102,440 21,287,405 (5.6 ) 20,102,440 21,287,405 (5.6 ) Other borrowings 750,217 750,949 (0.1 ) 750,217 750,949 (0.1 ) Subordinated notes 345,927 223,950 54.5 345,927 223,950 54.5 Subordinated debentures 120,892 120,335 0.5 120,892 120,335 0.5 Unfunded balance of closed loans 12,385,369 11,604,614 6.7 12,385,369 11,604,614 6.7 Reserve for losses on unfunded loan commitments 61,076 68,426 (10.7 ) 61,076 68,426 (10.7 ) Total common stockholders’ equity 4,553,240 4,186,285 8.8 4,553,240 4,186,285 8.8 Net unrealized gains on investment securities AFS
included in common stockholders' equity40,706 61,116 40,706 61,116 Loan (including purchased loans) to deposit ratio 91.06 % 90.94 % 91.06 % 90.94 % Selected ratios: Return on average assets(2) 1.98 % 1.63 % 2.15 % 0.90 % Return on average common stockholders’ equity(2) 11.41 10.48 12.98 5.55 Return on average tangible common stockholders’ equity(1) (2) 13.39 12.52 15.31 6.65 Average common equity to total average assets 17.38 15.56 16.57 16.23 Net interest margin – FTE(2) 4.16 3.69 3.99 3.79 Efficiency ratio 40.14 41.77 39.39 42.38 Net charge-offs to average non-purchased loans(2) (3) 0.04 0.09 0.07 0.07 Net charge-offs to average total loans(2) 0.03 0.09 0.06 0.16 Nonperforming loans to total loans(4) 0.20 0.15 0.20 0.15 Nonperforming assets to total assets(4) 0.17 0.17 0.17 0.17 Allowance for loan losses to total loans(5) 1.30 1.60 1.30 1.60 Other information: Non-accrual loans(4) $ 34,920 $ 27,181 $ 34,920 $ 21,181 Accruing loans − 90 days past due(4) — — — — Troubled and restructured non-purchased loans − accruing(4) 1,253 1,251 1,253 1,251 (1) Calculations of pre-tax pre-provision net revenue, tangible book value per common share and return on 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.Selected Consolidated Financial Data (continued)
UnauditedThree Months Ended September 30, June 30, 2021 2021 % Change (Dollars in thousands, except per share amounts) Income statement data: Net interest income $ 247,957 $ 240,746 3.0 % Provision for credit losses (7,454 ) (30,932 ) (75.9 ) Non-interest income 25,984 27,742 (6.3 ) Non-interest expense 110,397 103,711 6.4 Net income available to common stockholders 130,290 150,535 (13.4 ) Pre-tax pre-provision net revenue(1) 163,544 164,777 (0.7 ) Common share and per common share data: Earnings per share − diluted $ 1.00 $ 1.16 (13.8 )% Earnings per share − basic 1.01 1.16 (12.9 ) Dividends per share 0.285 0.28 1.8 Book value per share 35.35 34.70 1.9 Tangible book value per share(1) 30.14 29.52 2.1 Weighted-average diluted shares outstanding (thousands) 129,929 130,255 (0.3 ) End of period shares outstanding (thousands) 128,818 129,720 (0.7 ) Balance sheet data at period end: Total assets $ 26,143,367 $ 26,605,938 (1.7 )% Total loans 18,305,303 18,271,670 0.2 Non-purchased loans 17,707,452 17,611,848 0.5 Purchased loans 597,851 659,822 (9.4 ) Allowance for loan losses 237,722 248,753 (4.4 ) Foreclosed assets 9,444 7,542 25.2 Investment securities − AFS 3,846,496 4,693,396 (18.0 ) Goodwill and other intangible assets, net 670,580 672,125 (0.2 ) Deposits 20,102,440 20,706,777 (2.9 ) Other borrowings 750,217 750,228 (0.1 ) Subordinated notes 345,927 224,236 54.3 Subordinated debentures 120,892 120,752 0.1 Unfunded balance of closed loans 12,385,369 11,709,818 5.8 Reserve for losses on unfunded loan commitments 61,076 58,811 3.9 Total common stockholders’ equity 4,553,240 4,501,676 1.1 Net unrealized gains on investment securities AFS included in common stockholders' equity 40,706 50,127 Loan (including purchased loans) to deposit ratio 91.06 % 88.24 % Selected ratios: Return on average assets(2) 1.98 % 2.24 % Return on average common stockholders’ equity(2) 11.41 13.65 Return on average tangible common stockholders’ equity(1) (2) 13.39 16.10 Average common equity to total average assets 17.38 16.42 Net interest margin – FTE(2) 4.16 3.95 Efficiency ratio 40.14 38.43 Net charge-offs to average non-purchased loans(2) (3) 0.04 0.09 Net charge-offs to average total loans(2) 0.03 0.08 Nonperforming loans to total loans(4) 0.20 0.22 Nonperforming assets to total assets(4) 0.17 0.18 Allowance for loan losses to total loans(5) 1.30 1.36 Other information: Non-accrual loans(4) $ 34,920 $ 38,195 Accruing loans − 90 days past due(4) — — Troubled and restructured non-purchased loans − accruing(4) 1,253 1,365 (1) Calculations of pre-tax pre-provision net revenue, tangible book value per common share and return on 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
Unaudited12/31/19 3/31/20 6/30/20 9/30/20 12/31/20 3/31/21 6/30/21 9/30/21 (Dollar in thousands) Earnings Summary: Net interest income $ 214,977 $ 209,775 $ 216,593 $ 224,657 $ 237,600 $ 234,636 $ 240,746 $ 247,957 Federal tax (FTE) adjustment 1,028 1,133 1,753 1,605 1,533 1,275 1,355 1,106 Net interest income (FTE) 216,005 210,908 218,346 226,262 239,133 235,911 242,101 249,063 Provision for credit losses (4,938 ) (117,663 ) (72,026 ) (7,200 ) (6,750 ) 31,559 30,932 7,454 Non-interest income 30,406 27,680 21,591 26,676 28,661 32,117 27,742 25,984 Non-interest expense (104,406 ) (103,425 ) (100,953 ) (105,641 ) (103,394 ) (106,059 ) (103,711 ) (110,397 ) Pretax income (FTE) 137,067 17,500 66,958 140,097 157,650 193,528 197,064 172,104 FTE adjustment (1,028 ) (1,133 ) (1,753 ) (1,605 ) (1,533 ) (1,275 ) (1,355 ) (1,106 ) Provision for income taxes (35,240 ) (4,509 ) (14,948 ) (29,251 ) (35,607 ) (43,818 ) (45,161 ) (40,713 ) Noncontrolling interest 7 8 9 12 3 (19 ) (13 ) 5 Net income available to common stockholders $ 100,806 $ 11,866 $ 50,266 $ 109,253 $ 120,513 $ 148,416 $ 150,535 $ 130,290 Earnings per common share – diluted $ 0.78 $ 0.09 $ 0.39 $ 0.84 $ 0.93 $ 1.14 $ 1.16 $ 1.00 Non-interest Income: Service charges on deposit accounts $ 10,933 $ 10,009 $ 8,281 $ 9,427 $ 9,983 $ 9,665 $ 10,311 $ 11,177 Trust income 2,010 1,939 1,759 1,936 1,909 2,206 1,911 2,247 BOLI income: Increase in cash surrender value 5,167 5,067 5,057 5,081 5,034 4,881 4,919 4,940 Death benefits 2,989 608 — — — 1,409 — — Loan service, maintenance and other fees 4,282 3,716 3,394 3,351 3,797 3,551 3,953 3,307 Gains on sales of other assets 1,358 161 621 891 5,189 5,828 2,341 463 Net gains on investment securities — 2,223 — 2,244 — — — — Other 3,667 3,957 2,479 3,746 2,749 4,577 4,307 3,850 Total non-interest income $ 30,406 $ 27,680 $ 21,591 $ 26,676 $ 28,661 $ 32,117 $ 27,742 $ 25,984 Non-interest Expense: Salaries and employee benefits $ 52,050 $ 51,473 $ 48,410 $ 53,119 $ 53,832 $ 53,645 $ 52,119 $ 53,769 Net occupancy and equipment 14,855 15,330 15,756 16,676 15,617 16,468 16,168 17,161 Other operating expenses 37,501 36,622 36,787 35,846 33,945 35,946 35,424 39,467 Total non-interest expense $ 104,406 $ 103,425 $ 100,953 $ 105,641 $ 103,394 $ 106,059 $ 103,711 $ 110,397 Balance Sheet Data: Total assets $ 23,555,728 $ 24,565,810 $ 26,380,409 $ 26,888,308 $ 27,162,596 $ 27,276,892 $ 26,605,938 $ 26,143,367 Non-purchased loans 16,224,539 17,030,378 18,247,431 18,419,958 18,401,495 17,979,435 17,611,848 17,707,452 Purchased loans 1,307,504 1,197,826 1,063,647 938,485 807,673 735,630 659,822 597,851 Investment securities – AFS 2,277,389 2,816,556 3,299,944 3,468,243 3,405,351 4,162,479 4,693,396 3,846,496 Deposits 18,474,259 18,809,190 20,723,598 21,287,405 21,450,356 21,296,442 20,706,777 20,102,440 Unfunded balance of closed loans 11,325,598 11,334,737 11,411,441 11,604,614 11,847,117 11,780,099 11,709,818 12,385,369 Common stockholders' equity 4,150,351 4,083,150 4,110,666 4,186,285 4,272,271 4,383,205 4,501,676 4,553,240 Bank OZK
Supplemental Quarterly Financial Data (Continued)
Unaudited12/31/19 3/31/20 6/30/20 9/30/20 12/31/20 3/31/21 6/30/21 9/30/21 (Dollars in thousands) Allowance for Credit Losses: Balance at beginning of period $ 109,001 $ 108,525 $ 316,409 $ 374,494 $ 377,273 $ 377,305 $ 342,307 $ 307,564 Adoption of CECL(1) methodology — 94,512 — — — — — — Net charge-offs (5,414 ) (4,291 ) (13,941 ) (4,421 ) (6,718 ) (3,439 ) (3,811 ) (1,312 ) Provision for credit losses 4,938 117,663 72,026 7,200 6,750 (31,559 ) (30,932 ) (7,454 ) Balance at end of period $ 108,525 $ 316,409 $ 374,494 $ 377,273 $ 377,305 $ 342,307 $ 307,564 $ 298,798 Allowance for loan losses $ 108,525 $ 238,737 $ 306,196 $ 308,847 $ 295,824 $ 268,077 $ 248,753 $ 237,722 Reserve for losses on unfunded loan commitments — 77,672 68,298 68,426 81,481 74,230 58,811 61,076 Total allowance for credit losses $ 108,525 $ 316,409 $ 374,494 $ 377,273 $ 377,305 $ 342,307 $ 307,564 $ 298,798 Selected Ratios: Net interest margin – FTE(2) 4.15 % 3.96 % 3.74 % 3.69 % 3.88 % 3.86 % 3.95 % 4.16 % Efficiency ratio 42.37 43.35 42.07 41.77 38.61 39.57 38.43 40.14 Net charge-offs to average non-purchased loans(2) (3) 0.10 0.08 0.05 0.09 0.14 0.08 0.09 0.04 Net charge-offs to average total loans(2) 0.12 0.10 0.29 0.09 0.14 0.07 0.08 0.03 Nonperforming loans to total loans(4) 0.15 0.16 0.18 0.15 0.25 0.25 0.22 0.20 Nonperforming assets to total assets(4) 0.18 0.19 0.19 0.17 0.21 0.19 0.18 0.17 Allowance for loan losses to total loans (5) 0.62 1.31 1.59 1.60 1.54 1.43 1.36 1.30 Loans past due 30 days or more, including past due non-accrual loans, to total loans(4) 0.19 0.18 0.13 0.13 0.16 0.13 0.10 0.13 (1) Current Expected Credit Loss.
(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
UnauditedThree Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Average
BalanceIncome/
ExpenseYield/
RateAverage
BalanceIncome/
ExpenseYield/
RateAverage
BalanceIncome/
ExpenseYield/
RateAverage
BalanceIncome/
ExpenseYield/
Rate(Dollars in thousands) ASSETS Earning assets: Interest earning deposits and federal funds sold $ 1,287,890 $ 523 0.16 % $ 1,705,652 $ 532 0.12 % $ 1,792,191 $ 1,556 0.12 % $ 1,459,814 $ 5,237 0.48 % Investment securities: Taxable 3,509,465 9,236 1.04 2,216,041 9,666 1.74 3,150,732 26,786 1.14 1,979,368 31,480 2.12 Tax-exempt – FTE 740,809 4,172 2.23 1,193,407 6,573 2.19 955,822 13,747 1.92 944,552 18,527 2.62 Non-purchased loans – FTE 17,559,654 238,488 5.39 18,311,166 236,846 5.15 17,761,807 717,488 5.40 17,602,817 701,892 5.33 Purchased loans 627,436 11,350 7.18 999,438 16,269 6.48 699,678 34,985 6.69 1,132,334 54,743 6.46 Total earning assets – FTE 23,725,254 263,769 4.41 24,425,704 269,886 4.40 24,360,230 794,562 4.36 23,118,885 811,879 4.69 Non-interest earning assets 2,348,740 2,235,853 2,324,716 2,302,225 Total assets $ 26,073,994 $ 26,661,557 $ 26,684,946 $ 25,421,110 LIABILITIES AND STOCKHOLDERS’ EQUITY Interest bearing liabilities: Deposits: Savings and interest bearing transaction $ 8,891,042 $ 2,885 0.13 % $ 7,581,707 $ 5,496 0.29 % $ 8,656,762 $ 9,840 0.15 % $ 7,742,865 $ 32,945 0.57 % Time deposits of $100 or more 4,852,566 6,508 0.53 6,101,542 20,858 1.36 5,509,055 30,737 0.75 5,259,616 66,813 1.70 Other time deposits 2,067,947 2,933 0.56 3,664,931 11,919 1.29 2,455,649 14,331 0.78 3,584,047 41,448 1.54 Total interest bearing deposits 15,811,555 12,326 0.31 17,348,180 38,273 0.88 16,621,466 54,908 0.44 16,586,528 141,206 1.14 Repurchase agreements with customers 7,565 4 0.21 7,093 4 0.24 6,849 14 0.27 7,686 17 0.29 Other borrowings(1) 750,221 1,013 0.54 793,350 1,156 0.58 750,292 2,996 0.53 711,408 2,168 0.41 Subordinated notes 56,468 429 3.01 223,899 3,207 5.70 167,636 6,755 5.39 223,801 9,551 5.70 Subordinated debentures(1) 120,822 934 3.07 120,253 984 3.26 120,681 2,814 3.12 120,119 3,420 3.80 Total interest bearing liabilities 16,746,631 14,706 0.35 18,492,775 43,624 0.94 17,666,924 67,487 0.51 17,649,542 156,362 1.18 Non-interest bearing liabilities: Non-interest bearing deposits 4,523,521 3,764,063 4,289,589 3,391,162 Other non-interest bearing liabilities 269,733 253,211 304,086 251,723 Total liabilities 21,539,885 22,510,049 22,260,599 21,292,427 Common stockholders’ equity 4,530,995 4,148,409 4,421,240 4,125,578 Noncontrolling interest 3,114 3,099 3,107 3,105 Total liabilities and stockholders’
equity$ 26,073,994 $ 26,661,557 $ 26,684,946 $ 25,421,110 Net interest income – FTE $ 249,063 $ 226,262 $ 727,075 $ 655,517 Net interest margin – FTE 4.16 % 3.69 % 3.99 % 3.79 % Core spread(2) 5.08 % 4.27 % 4.96 % 4.19 % (1) The interest expense and the rates for “other borrowings” and for “subordinated debentures” were affected by capitalized interest. Capitalized interest included in other borrowings totaled $0.02 million for the third quarter $0.07 million for the first nine months of 2021 compared to $0.03 million for the third quarter and $0.65 million for the first nine months of 2020. In the absence of this interest capitalization, the rates on other borrowings would have been 0.54% for the third quarter and 0.55% for the first nine months of 2021 compared to 0.59% for the third quarter and 0.53% for the first nine months of 2020. Capitalized interest included in subordinated debentures totaled $0.01 million for the third quarter and $0.18 million for the first nine months of 2020 (none in the third quarter or first nine months of 2021). In the absence of this interest capitalization, the rates on subordinated debentures would have been 3.27% for the third quarter and 4.00% for the first nine months of 2020.
(2) 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 MeasuresCalculation of Average Tangible Common Stockholders’ Equity
and the Annualized Return on Average Tangible Common Stockholders’ Equity
UnauditedThree Months Ended Nine Months Ended September 30, June 30, September 30, 2021 2020 2021 2021 2020 (Dollars in thousands) Net income available to common stockholders $ 130,290 $ 109,253 $ 150,535 $ 429,240 $ 171,385 Average common stockholders’ equity before noncontrolling interest $ 4,530,995 $ 4,148,409 $ 4,423,093 $ 4,421,240 $ 4,125,578 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 (10,617 ) (17,461 ) (12,175 ) (12,195 ) (19,803 ) Total average intangibles (671,406 ) (678,250 ) (672,964 ) (672,984 ) (680,592 ) Average tangible common stockholders’ equity $ 3,859,589 $ 3,470,159 $ 3,750,129 $ 3,748,256 $ 3,444,986 Return on average common stockholders’ equity(1) 11.41 % 10.48 % 13.65 % 12.98 % 5.55 % Return on average tangible common stockholders' equity(1) 13.39 % 12.52 % 16.10 % 15.31 % 6.65 % (1) Ratios for interim periods annualized based on actual days.
Calculation of Total Tangible Common Stockholders’ Equity
and Tangible Book Value per Common Share
UnauditedSeptember 30, June 30, 2021 2020 2021 (In thousands, except per share amounts) Total common stockholders’ equity before noncontrolling interest $ 4,553,240 $ 4,186,285 $ 4,501,676 Less intangible assets: Goodwill (660,789 ) (660,789 ) (660,789 ) Core deposit and other intangible assets, net of accumulated amortization (9,791 ) (16,462 ) (11,336 ) Total intangibles (670,580 ) (677,251 ) (672,125 ) Total tangible common stockholders' equity $ 3,882,660 $ 3,509,034 $ 3,829,551 Shares of common stock outstanding 128,818 129,342 129,720 Book value per common share $ 35.35 $ 32.37 $ 34.70 Tangible book value per common share $ 30.14 $ 27.13 $ 29.52 Calculation of Total Tangible Common Stockholders’ Equity
and the Ratio of Total Tangible Common Stockholders’ Equity
to Total Tangible Assets
UnauditedSeptember 30, 2021 2020 (Dollars in thousands) Total common stockholders’ equity before noncontrolling interest $ 4,553,240 $ 4,186,285 Less intangible assets: Goodwill (660,789 ) (660,789 ) Core deposit and other intangible assets, net of accumulated amortization (9,791 ) (16,462 ) Total intangibles (670,580 ) (677,251 ) Total tangible common stockholders' equity $ 3,882,660 $ 3,509,034 Total assets $ 26,143,367 $ 26,888,308 Less intangible assets: Goodwill (660,789 ) (660,789 ) Core deposit and other intangible assets, net of accumulated amortization (9,791 ) (16,462 ) Total intangibles (670,580 ) (677,251 ) Total tangible assets $ 25,472,787 $ 26,211,057 Ratio of total common stockholders’ equity to total assets 17.42 % 15.57 % Ratio of total tangible common stockholders’ equity to total tangible assets 15.24 % 13.39 % Calculation of Pre-Tax Pre-Provision Net Revenue
UnauditedThree Months Ended Nine Months Ended September 30, June 30, September 30, 2021 2020 2021 2021 2020 (Dollars in thousands) Income before taxes $ 170,998 $ 138,492 $ 195,709 $ 558,958 $ 220,063 Provision for credit losses (7,454 ) 7,200 (30,932 ) (69,946 ) 196,889 Pre-tax pre-provision net revenue $ 163,544 $ 145,692 $ 164,777 $ 489,012 $ 416,952 Investor Contact: Tim Hicks (501) 978-2336 Media Contact: Susan Blair (501) 978-2217 
