Bank OZK Announces Fourth Quarter and Full Year 2020 Earnings

LITTLE ROCK, Ark., Jan. 21, 2021 (GLOBE NEWSWIRE) -- Bank OZK (the “Bank”) (Nasdaq: OZK) today announced that net income for the fourth quarter of 2020 was $120.5 million, a 19.5% increase from $100.8 million for the fourth quarter of 2019. Diluted earnings per common share for the fourth quarter of 2020 were $0.93, a 19.2% increase from $0.78 for the fourth quarter of 2019.

For the full year of 2020, net income was $291.9 million, a 31.5% decrease from $425.9 million for the full year of 2019. Diluted earnings per common share for the full year of 2020 were $2.26, a 31.5% decrease from $3.30 for the full year of 2019.

Pre-tax pre-provision net revenue (“PPNR”) was $162.9 million for the fourth quarter of 2020, a 15.5% increase from $141.0 million for the fourth quarter of 2019. PPNR was $579.8 million for the full year of 2020, a 1.8% decrease from $590.6 million for the full year of 2019. The calculation of PPNR and the reconciliation to generally accepted accounting principles (“GAAP”) are included in the schedules accompanying this release.

The COVID-19 pandemic significantly affected the global economy in 2020. The sudden and severe economic downturn, combined with the implementation of the current expected credit losses (“CECL”) method to calculate the Bank’s allowance for credit losses (“ACL”) and uncertain future economic projections, resulted in the Bank incurring significant provision for credit losses in the first and second quarters of 2020. The Bank’s provision for credit losses was $203.6 million for the full year of 2020, and the Bank’s ACL was $377.3 million at December 31, 2020.

The Bank’s annualized returns on average assets, average common stockholders’ equity and average tangible common stockholders’ equity for the fourth quarter of 2020 were 1.79%, 11.36% and 13.53%, respectively, compared to 1.74%, 9.73% and 11.68%, respectively, for the fourth quarter of 2019. The Bank’s returns on average assets, average common stockholder’s equity and average tangible common stockholders’ equity for the full year of 2020 were 1.13%, 7.04% and 8.41%, respectively, compared to 1.87%, 10.72%, and 12.98%, respectively, for the full year of 2019. 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 one of our best quarters ever, highlighted by record quarterly net interest income, our second highest quarterly net income in company history, excellent asset quality and an efficiency ratio among the best in the industry.  It was a strong finish to a challenging year. Our strong capital and liquidity, our disciplined credit culture and our exceptional team have us well positioned for the future.”

KEY BALANCE SHEET METRICS

Total loans were $19.21 billion at December 31, 2020, a 9.6% increase from $17.53 billion at December 31, 2019, but a 0.8% decrease from $19.36 billion at September 30, 2020. Non-purchased loans were $18.40 billion at December 31, 2020, a 13.4% increase from $16.22 billion at December 31, 2019, but a 0.1% decrease from $18.42 billion at September 30, 2020.  Purchased loans, which consist of loans acquired in previous acquisitions, were $0.81 billion at December 31, 2020, a 38.2% decrease from $1.31 billion at December 31, 2019.

Deposits were $21.45 billion at December 31, 2020, a 16.1% increase from $18.47 billion at December 31, 2019. Total assets were $27.16 billion at December 31, 2020, a 15.3% increase from $23.56 billion at December 31, 2019.

Common stockholders’ equity was $4.27 billion at December 31, 2020, a 2.9% increase from $4.15 billion at December 31, 2019. Tangible common stockholders’ equity was $3.60 billion at December 31, 2020, a 3.8% increase from $3.47 billion at December 31, 2019. Book value per common share was $33.03 at December 31, 2020, a 2.6% increase from $32.19 at December 31, 2019. Tangible book value per common share was $27.81 at December 31, 2020, a 3.5% increase from $26.88 at December 31, 2019. 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 15.73% at December 31, 2020 compared to 17.62% at December 31, 2019. Its ratio of total tangible common stockholders’ equity to total tangible assets was 13.59% at December 31, 2020 compared to 15.15% at December 31, 2019. 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.

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 January 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 passcode for this playback is 7995612. 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 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 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.”

STATEMENT REGARDING IMPACT OF COVID-19 PANDEMIC

The Bank prioritizes the health and safety of its employees and customers, and it will continue to do so throughout the duration of the COVID-19 pandemic. At the same time, the Bank remains focused on increasing shareholder value, managing credit exposure, managing expenses, enhancing the customer experience and supporting the communities it serves.

In management’s comments on its quarterly results (released simultaneously with this news release) and in its earnings conference call, the Bank has sought and will seek to describe the historical and future impact of the COVID-19 pandemic on the Bank’s assets, business, cash flows, financial condition, liquidity, prospects and results of operations, including the information and discussions regarding its provision and ACL and the discussion regarding its net interest margin. Although the Bank believes that the statements that pertain to future events, results and trends and their impact on the Bank’s business are reasonable at the present time, those statements are not historical facts and are based upon current assumptions, expectations, estimates and projections, many of which, by their nature, are beyond the Bank’s control. Accordingly, all discussions regarding future events, results and trends and their impact on the Bank’s business, even in the near term, are necessarily uncertain given the evolving nature of the COVID-19 pandemic.

If the health, logistical or economic effects of the COVID-19 pandemic worsen, or if the assumptions, expectations, estimates or projections that underlie the Bank’s statements regarding future effects or trends prove to be incorrect, then the Bank’s assets, business, cash flows, financial condition, liquidity, prospects and results of operations may be materially and adversely impacted in ways that the Bank cannot reasonably forecast. Accordingly, when reading this release and the accompanying prepared remarks from management on its quarterly results and when listening to the earnings conference call, undue reliance should not be placed upon any statement pertaining to future events, results and trends and their impact on the Bank’s business in future periods.

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 or 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 proposed 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 and any similar or related rules and regulations; changes in U.S. Government monetary and fiscal policy, including any changes that result from the recent U.S. elections; 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 ongoing global COVID-19 pandemic, including the magnitude and 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; national, international or political instability; impairment of the Bank’s goodwill or other intangible assets; adoption of new accounting standards, including the effects from the adoption of the CECL methodology on January 1, 2020, 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, 2019 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 more than 250 branches, loan production offices and other offices in Arkansas, Georgia, Florida, North Carolina, South 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. 

Investor Contact:	Tim Hicks (501) 978-2336
Media Contact:	Susan Blair (501) 978-2217

Bank OZK
Consolidated Balance Sheets
Unaudited

	December 31,
	2020				2019
	(Dollars in thousands, except per share amounts)
ASSETS
Cash and cash equivalents	$	2,393,662			$	1,495,757
Investment securities ― available for sale ("AFS")		3,405,351				2,277,389
Federal Home Loan Bank of Dallas and other bankers' bank stocks		38,486				21,855
Non-purchased loans		18,401,495				16,224,539
Purchased loans		807,673				1,307,504
Allowance for loan losses		(295,824	)			(108,525	)
Net loans		18,913,344				17,423,518
Premises and equipment, net		738,842				711,541
Foreclosed assets		11,085				19,096
Accrued interest receivable		88,077				75,208
Bank owned life insurance (“BOLI”)		758,071				738,860
Goodwill and other intangible assets, net		675,458				684,542
Other, net		140,220				107,962
Total assets	$	27,162,596			$	23,555,728
LIABILITIES AND STOCKHOLDERS’ EQUITY
Deposits:
Demand non-interest bearing	$	3,996,546			$	2,795,251
Savings and interest bearing transaction		8,160,982				8,307,607
Time		9,292,828				7,371,401
Total deposits		21,450,356				18,474,259
Repurchase agreements with customers		8,013				11,249
Other borrowings		750,928				351,387
Subordinated notes		224,047				223,663
Subordinated debentures		120,475				119,916
Reserve for losses on unfunded loan commitments		81,481				—
Accrued interest payable and other liabilities		251,940				221,786
Total liabilities		22,887,240				19,402,260
Commitments and contingencies
Stockholders’ equity:
Preferred stock; $0.01 par value; 100,000,000 shares authorized; no shares issued or outstanding at December 31, 2020 or 2019		—				—
Common stock; $0.01 par value; 300,000,000 shares authorized; 129,350,448 and 128,951,024 shares issued and outstanding at December 31, 2020 and 2019, respectively		1,294				1,289
Additional paid-in capital		2,265,850				2,251,824
Retained earnings		1,946,875				1,869,983
Accumulated other comprehensive income		58,252				27,255
Total stockholders’ equity before noncontrolling interest		4,272,271				4,150,351
Noncontrolling interest		3,085				3,117
Total stockholders’ equity		4,275,356				4,153,468
Total liabilities and stockholders’ equity	$	27,162,596			$	23,555,728

Bank OZK
Consolidated Statements of Income
Unaudited

	Three Months Ended								Year Ended
	December 31,								December 31,
	2020				2019				2020				2019
	(Dollars in thousands, except per share amounts)
Interest income:
Non-purchased loans	$	243,064			$	240,912			$	944,354			$	981,811
Purchased loans		16,069				22,152				70,812				106,908
Investment securities:
Taxable		9,066				11,820				40,547				52,812
Tax-exempt		4,767				3,323				19,403				14,252
Deposits with banks and federal funds sold		428				2,756				5,665				6,758
Total interest income		273,394				280,963				1,080,781				1,162,541
Interest expense:
Deposits		30,607				61,631				171,813				258,358
Repurchase agreements with customers		6				11				23				50
Other borrowings		1,011				34				3,179				1,531
Subordinated notes		3,207				3,216				12,758				12,757
Subordinated debentures		963				1,094				4,384				5,664
Total interest expense		35,794				65,986				192,157				278,360
Net interest income		237,600				214,977				888,624				884,181
Provision for credit losses		6,750				4,938				203,639				26,241
Net interest income after provision for credit losses		230,850				210,039				684,985				857,940
Non-interest income:
Service charges on deposit accounts		9,983				10,933				37,699				41,774
Trust income		1,909				2,010				7,544				7,554
BOLI income:
Increase in cash surrender value		5,034				5,167				20,239				20,715
Death benefits		—				2,989				608				3,194
Loan service, maintenance and other fees		3,797				4,282				14,257				17,917
Other income from purchased loans		—				759				—				3,684
Gains on sales of other assets		5,189				1,358				6,863				2,233
Net gains on investment securities		—				—				4,467				713
Other		2,749				2,908				12,931				9,743
Total non-interest income		28,661				30,406				104,608				107,527
Non-interest expense:
Salaries and employee benefits		53,832				52,050				206,834				192,851
Net occupancy and equipment		15,617				14,855				63,379				59,018
Other operating expenses		33,945				37,501				143,200				149,261
Total non-interest expense		103,394				104,406				413,413				401,130
Income before taxes		156,117				136,039				376,180				564,337
Provision for income taxes		35,607				35,240				84,314				138,429
Net income		120,510				100,799				291,866				425,908
Earnings attributable to noncontrolling interest		3				7				32				(2	)
Net income available to common stockholders	$	120,513			$	100,806			$	291,898			$	425,906
Basic earnings per common share	$	0.93			$	0.78			$	2.26			$	3.30
Diluted earnings per common share	$	0.93			$	0.78			$	2.26			$	3.30

Bank OZK
Consolidated Statements of Stockholders’ Equity
Unaudited

	Common Stock				Additional Paid-In Capital				Retained Earnings				Accumulated Other Comprehensive Income (Loss)				Non- Controlling Interest				Total
	(Dollars in thousands, except per share amounts)
Three months ended December 31, 2020:
Balances – September 30, 2020	$	1,293			$	2,261,864			$	1,862,012			$	61,116			$	3,088			$	4,189,373
Net income		—				—				120,510				—				—				120,510
Earnings attributable to noncontrolling interest		—				—				3				—				(3	)			—
Total other comprehensive loss		—				—				—				(2,864	)			—				(2,864	)
Common stock dividends, $0.275 per share		—				—				(35,650	)			—				—				(35,650	)
Issuance of 39,900 shares of common stock for exercise of stock options		—				991				—				—				—				991
Stock-based compensation expense		—				2,996				—				—				—				2,996
Forfeitures of 31,525 shares of unvested restricted common stock		1				(1	)			—				—				—				—
Balances – December 31, 2020	$	1,294			$	2,265,850			$	1,946,875			$	58,252			$	3,085			$	4,275,356
Year ended December 31, 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		—				—				291,866				—				—				291,866
Earnings attributable to noncontrolling interest		—				—				32				—				(32	)			—
Total other comprehensive income		—				—				—				30,997				—				30,997
Common stock dividends, $1.0775 per share		—				—				(139,662	)			—				—				(139,662	)
Issuance of 44,200 shares of common stock for exercise of stock options		—				1,036				—				—				—				1,036
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		—				14,848				—				—				—				14,848
Forfeitures of 76,664 shares of unvested restricted common stock		1				(1	)			—				—				—				—
Balances – December 31, 2020	$	1,294			$	2,265,850			$	1,946,875			$	58,252			$	3,085			$	4,275,356

Bank OZK
Consolidated Statements of Stockholders’ Equity (Continued)
Unaudited

	Common Stock				Additional Paid-In Capital				Retained Earnings				Accumulated Other Comprehensive Income (Loss)				Non- Controlling Interest				Total
	(Dollars in thousands, except per share amounts)
Three months ended December 31, 2019:
Balances – September 30, 2019	$	1,289			$	2,247,973			$	1,801,414			$	27,648			$	3,124			$	4,081,448
Net income		—				—				100,799				—				—				100,799
Earnings attributable to noncontrolling interest		—				—				7				—				(7	)			—
Total other comprehensive loss		—				—				—				(393	)			—				(393	)
Common stock dividends, $0.25 per share		—				—				(32,237	)			—				—				(32,237	)
Issuance of 16,150 shares of common stock for exercise of stock options		—				266				—				—				—				266
Stock-based compensation expense		—				3,585				—				—				—				3,585
Forfeitures of 11,485 shares of unvested restricted common stock		—				—				—				—				—				—
Balances – December 31, 2019	$	1,289			$	2,251,824			$	1,869,983			$	27,255			$	3,117			$	4,153,468
Year ended December 31, 2019:
Balances – December 31, 2018	$	1,286			$	2,237,948			$	1,565,201			$	(34,105	)		$	3,035			$	3,773,365
Net income		—				—				425,908				—				—				425,908
Earnings attributable to noncontrolling interest		—				—				(2	)			—				2				—
Total other comprehensive income		—				—				—				61,360				—				61,360
Common stock dividends, $0.94 per share		—				—				(121,124	)			—				—				(121,124	)
Noncontrolling interest cash contribution		—				—				—				—				80				80
Issuance of 83,500 shares of common stock for exercise of stock options		1				1,384				—				—				—				1,385
Issuance of 406,074 shares of unvested restricted common stock		4				(4	)			—				—				—				—
Repurchase and cancellation of 63,716 shares of common stock		(1	)			(1,674	)			—				—				—				(1,675	)
Stock-based compensation expense		—				14,169				—				—				—				14,169
Forfeiture of 85,883 shares of unvested restricted common stock		(1	)			1				—				—				—				—
Balances – December 31, 2019	$	1,289			$	2,251,824			$	1,869,983			$	27,255			$	3,117			$	4,153,468

Bank OZK
Summary of Non-Interest Expense
Unaudited

	Three Months Ended								Year Ended
	December 31,								December 31,
	2020				2019				2020				2019
	(Dollars in thousands)
Salaries and employee benefits	$	53,832			$	52,050			$	206,834			$	192,851
Net occupancy and equipment		15,617				14,855				63,379				59,018
Other operating expenses:
Professional and outside services		7,345				7,156				30,974				33,030
Software and data processing		5,729				4,974				21,279				19,535
Deposit insurance and assessments		3,647				3,780				15,247				13,425
Telecommunication services		2,296				2,335				9,159				10,583
Postage and supplies		1,709				2,483				7,462				8,684
Advertising and public relations		1,086				1,822				6,050				7,242
ATM expense		1,490				1,263				5,256				4,626
Travel and meals		835				2,845				4,336				11,230
Loan collection and repossession expense		481				600				3,062				2,818
Writedowns of foreclosed and other assets		1,582				910				3,669				2,419
Amortization of intangibles		1,794				2,854				9,085				11,918
Other		5,951				6,479				27,621				23,751
Total non-interest expense	$	103,394			$	104,406			$	413,413			$	401,130

Bank OZK
Summary of Total Loans Outstanding
Unaudited

	December 31,
	2020								2019
	(Dollars in thousands)
Real estate:
Residential 1-4 family	$	911,115				4.7	%		$	998,632				5.7	%
Non-farm/non-residential		4,213,636				21.9				3,956,579				22.6
Construction/land development		8,046,978				41.9				6,391,429				36.4
Agricultural		204,868				1.1				230,076				1.3
Multifamily residential		856,297				4.5				1,194,192				6.8
Total real estate		14,232,894				74.1				12,770,908				72.8
Commercial and industrial		842,206				4.4				661,952				3.8
Consumer		2,393,964				12.5				2,934,534				16.8
Other		1,740,104				9.0				1,164,649				6.6
Total loans		19,209,168				100.0	%			17,532,043				100.0	%
Allowance for loan losses		(295,824	)							(108,525	)
Net loans	$	18,913,344							$	17,423,518

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 December 31, 2020:
Balances – September 30, 2020	$	308,847			$	68,426			$	377,273
Net charge-offs		(6,718	)			—				(6,718	)
Provision for credit losses		(6,305	)			13,055				6,750
Balances – December 31, 2020	$	295,824			$	81,481			$	377,305
Year ended December 31, 2020:
Balances – December 31, 2019	$	108,525			$	—			$	108,525
Adoption of Current Expected Credit Loss (CECL) methodology		39,588				54,924				94,512
Balances – January 1, 2020		148,113				54,924				203,037
Net charge-offs		(29,371	)			—				(29,371	)
Provision for credit losses		177,082				26,557				203,639
Balances – December 31, 2020	$	295,824			$	81,481			$	377,305
Three months ended December 31, 2019:
Balances – September 30, 2019	$	109,001			$	—			$	109,001
Net charge-offs		(5,414	)			—				(5,414	)
Provision for credit losses		4,938				—				4,938
Balances – December 31, 2019	$	108,525			$	—			$	108,525
Year ended December 31, 2019:
Balances – December 31, 2018	$	102,264			$	—			$	102,264
Net charge-offs		(19,980	)			—				(19,980	)
Provision for credit losses		26,241				—				26,241
Balances – December 31, 2019	$	108,525			$	—			$	108,525

Bank OZK
Summary of Deposits – By Account Type
Unaudited

	December 31,
	2020								2019
	(Dollars in thousands)
Non-interest bearing	$	3,996,546				18.6	%		$	2,795,251				15.1	%
Interest bearing:
Transaction (NOW)		3,124,007				14.6				2,706,426				14.7
Savings and money market		5,036,975				23.5				5,601,181				30.3
Time deposits less than $100		3,075,845				14.3				3,321,446				18.0
Time deposits of $100 or more		6,216,983				29.0				4,049,955				21.9
Total deposits	$	21,450,356				100.0	%		$	18,474,259				100.0	%

Summary of Deposits – By Customer Type
Unaudited

	December 31,
	2020								2019
	(Dollars in thousands)
Consumer	$	11,165,603				52.1	%		$	7,526,014				40.7	%
Commercial		6,056,536				28.2				4,334,366				23.5
Public Funds		2,111,971				9.8				3,782,415				20.5
Brokered		1,600,116				7.5				2,115,193				11.4
Reciprocal		516,130				2.4				716,271				3.9
Total deposits	$	21,450,356				100.0	%		$	18,474,259				100.0	%

Bank OZK
Selected Consolidated Financial Data
Unaudited

	Three Months Ended												Year Ended
	December 31,												December 31,
	2020				2019				% Change				2020				2019				% Change
	(Dollars in thousands, except per share amounts)
Income statement data:
Net interest income	$	237,600			$	214,977				10.5	%		$	888,624			$	884,181				0.5	%
Provision for credit losses		6,750				4,938				36.7				203,639				26,241				676.0
Non-interest income		28,661				30,406				(5.7	)			104,608				107,527				(2.7	)
Non-interest expense		103,394				104,406				(1.0	)			413,413				401,130				3.1
Net income available to common stockholders		120,513				100,806				19.5				291,898				425,906				(31.5	)
Pre-tax pre-provision net revenue(1)		162,867				140,977				15.5				579,819				590,578				(1.8	)
Common share and per common share data:
Net income per share − diluted	$	0.93			$	0.78				19.2	%		$	2.26			$	3.30				(31.5	)%
Net income per share − basic		0.93				0.78				19.2				2.26				3.30				(31.5	)
Dividends per share		0.275				0.25				10.0				1.0775				0.94				14.6
Book value per share		33.03				32.19				2.6				33.03				32.19				2.6
Tangible book value per share(1)		27.81				26.88				3.5				27.81				26.88				3.5
Weighted-average diluted shares outstanding (thousands)		129,523				129,036								129,435				129,006
End of period shares outstanding (thousands)		129,350				128,951								129,350				128,951
Balance sheet data at period end:
Total assets	$	27,162,596			$	23,555,728				15.3	%		$	27,162,596			$	23,555,728				15.3	%
Total loans		19,209,168				17,532,043				9.6				19,209,168				17,532,043				9.6
Non-purchased loans		18,401,495				16,224,539				13.4				18,401,495				16,224,539				13.4
Purchased loans		807,673				1,307,504				(38.2	)			807,673				1,307,504				(38.2	)
Allowance for loan losses		295,824				108,525				172.6				295,824				108,525				172.6
Foreclosed assets		11,085				19,096				(42.0	)			11,085				19,096				(42.0	)
Investment securities − AFS		3,405,351				2,277,389				49.5				3,405,351				2,277,389				49.5
Goodwill and other intangible assets, net		675,458				684,542				(1.3	)			675,458				684,542				(1.3	)
Deposits		21,450,356				18,474,259				16.1				21,450,356				18,474,259				16.1
Other borrowings		750,928				351,387				113.7				750,928				351,387				113.7
Subordinated notes		224,047				223,663				0.2				224,047				223,663				0.2
Subordinated debentures		120,475				119,916				0.5				120,475				119,916				0.5
Unfunded balance of closed loans		11,847,117				11,325,598				4.6				11,847,117				11,325,598				4.6
Reserve for losses on unfunded loan commitments		81,481				—			NM					81,481				—			NM
Total common stockholders’ equity		4,272,271				4,150,351				2.9				4,272,271				4,150,351				2.9
Net unrealized gains on investment securities AFS included in common stockholders' equity		58,252				27,255								58,252				27,255
Loan (including purchased loans) to deposit ratio		89.55	%			94.90	%							89.55	%			94.90	%
Selected ratios:
Return on average assets(2)		1.79	%			1.74	%							1.13	%			1.87	%
Return on average common stockholders’ equity(2)		11.36				9.73								7.04				10.72
Return on average tangible common stockholders’ equity(1) (2)		13.53				11.68								8.41				12.98
Average common equity to total average assets		15.74				17.86								16.10				17.45
Net interest margin – FTE(2)		3.88				4.15								3.81				4.34
Efficiency ratio		38.61				42.37								41.37				40.27
Net charge-offs to average non-purchased loans(2) (3)		0.14				0.10								0.09				0.09
Net charge-offs to average total loans(2)		0.14				0.12								0.16				0.11
Nonperforming loans to total loans(4)		0.25				0.15								0.25				0.15
Nonperforming assets to total assets(4)		0.21				0.18								0.21				0.18
Allowance for loan losses to total loans(5)		1.54				0.62								1.54			0.62
Other information:
Non-accrual loans(4)	$	45,162			$	23,221							$	45,162			$	23,221
Accruing loans − 90 days past due(4)		—				—								—				—
Troubled and restructured non-purchased loans − accruing(4)		1,483				656								1,483				656

(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.
NM – Not meaningful

Selected Consolidated Financial Data (continued)
Unaudited

	Three Months Ended
	December 31,				September 30,
	2020				2020				% Change
	(Dollars in thousands, except per share amounts)
Income statement data:
Net interest income	$	237,600			$	224,657				5.8	%
Provision for credit losses		6,750				7,200				(6.3	)
Non-interest income		28,661				26,676				7.4
Non-interest expense		103,394				105,641				(2.1	)
Net income available to common stockholders		120,513				109,253				10.3
Pre-tax pre-provision net revenue(1)		162,867				145,692				11.8
Common share and per common share data:
Net income per share − diluted	$	0.93			$	0.84				10.7	%
Net income per share − basic		0.93				0.84				10.7
Dividends per share		0.275				0.2725				0.9
Book value per share		33.03				32.37				2.0
Tangible book value per share(1)		27.81				27.13				2.5
Weighted-average diluted shares outstanding (thousands)		129,523				129,470
End of period shares outstanding (thousands)		129,350				129,342
Balance sheet data at period end:
Total assets	$	27,162,596			$	26,888,308				1.0	%
Total loans		19,209,168				19,358,443				(0.8	)
Non-purchased loans		18,401,495				18,419,958				(0.1	)
Purchased loans		807,673				938,485				(13.9	)
Allowance for loan losses		295,824				308,847				(4.2	)
Foreclosed assets		11,085				16,543				(33.0	)
Investment securities − AFS		3,405,351				3,468,243				(1.8	)
Goodwill and other intangible assets, net		675,458				677,251				(0.3	)
Deposits		21,450,356				21,287,405				0.8
Other borrowings		750,928				750,949				0.1
Subordinated notes		224,047				223,950				0.1
Subordinated debentures		120,475				120,335				0.1
Unfunded balance of closed loans		11,847,117				11,604,614				2.1
Reserve for losses on unfunded loan commitments		81,481				68,426				19.1
Total common stockholders’ equity		4,272,271				4,186,285				2.1
Net unrealized gains on investment securities AFS included in common stockholders' equity		58,252				61,116
Loan (including purchased loans) to deposit ratio		89.55	%			90.94	%
Selected ratios:
Return on average assets(2)		1.79	%			1.63	%
Return on average common stockholders’ equity(2)		11.36				10.48
Return on average tangible common stockholders’ equity(1) (2)		13.53				12.52
Average common equity to total average assets		15.74				15.56
Net interest margin – FTE(2)		3.88				3.69
Efficiency ratio		38.61				41.77
Net charge-offs to average non-purchased loans(2) (3)		0.14				0.09
Net charge-offs to average total loans(2)		0.14				0.09
Nonperforming loans to total loans(4)		0.25				0.15
Nonperforming assets to total assets(4)		0.21				0.17
Allowance for loan losses to total loans(5)		1.54				1.60
Other information:
Non-accrual loans(4)	$	45,162			$	27,181
Accruing loans − 90 days past due(4)		—				—
Troubled and restructured non-purchased loans − accruing(4)		1,483				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.

Bank OZK
Supplemental Quarterly Financial Data
Unaudited

	3/31/19				6/30/19				9/30/19				12/31/19				3/31/20				6/30/20				9/30/20				12/31/20
	(Dollars in thousands, except per share amounts)
Earnings Summary:
Net interest income	$	225,888			$	224,536			$	218,780			$	214,977			$	209,775			$	216,593			$	224,657			$	237,600
Federal tax (FTE) adjustment		1,207				1,136				1,038				1,028				1,133				1,753				1,605				1,533
Net interest income (FTE)		227,095				225,672				219,818				216,005				210,908				218,346				226,262				239,133
Provision for credit losses		(6,681	)			(6,769	)			(7,854	)			(4,938	)			(117,663	)			(72,026	)			(7,200	)			(6,750	)
Non-interest income		24,072				26,603				26,446				30,406				27,680				21,591				26,676				28,661
Non-interest expense		(96,678	)			(99,131	)			(100,914	)			(104,406	)			(103,425	)			(100,953	)			(105,641	)			(103,394	)
Pretax income (FTE)		147,808				146,375				137,496				137,067				17,500				66,958				140,097				157,650
FTE adjustment		(1,207	)			(1,136	)			(1,038	)			(1,028	)			(1,133	)			(1,753	)			(1,605	)			(1,533	)
Provision for income taxes		(35,889	)			(34,726	)			(32,574	)			(35,240	)			(4,509	)			(14,948	)			(29,251	)			(35,607	)
Noncontrolling interest		(6	)			(10	)			7				7				8				9				12				3
Net income available to common stockholders	$	110,706			$	110,503			$	103,891			$	100,806			$	11,866			$	50,266			$	109,253			$	120,513
Earnings per common share – diluted	$	0.86			$	0.86			$	0.81			$	0.78			$	0.09			$	0.39			$	0.84			$	0.93
Non-interest Income:
Service charges on deposit accounts	$	9,722			$	10,291			$	10,827			$	10,933			$	10,009			$	8,281			$	9,427			$	9,983
Trust income		1,730				1,839				1,975				2,010				1,939				1,759				1,936				1,909
BOLI income:
Increase in cash surrender value		5,162				5,178				5,208				5,167				5,067				5,057				5,081				5,034
Death benefits		—				—				206				2,989				608				—				—				—
Loan service, maintenance and other fees		4,874				4,565				4,197				4,282				3,716				3,394				3,351				3,797
Other income from purchased loans		795				1,455				674				759				—				—				—				—
Gains on sales of other assets		284				402				189				1,358				161				621				891				5,189
Net gains on investment securities		—				713				—				—				2,223				—				2,244				—
Other		1,505				2,160				3,170				2,908				3,957				2,479				3,746				2,749
Total non-interest income	$	24,072			$	26,603			$	26,446			$	30,406			$	27,680			$	21,591			$	26,676			$	28,661
Non-interest Expense:
Salaries and employee benefits	$	44,868			$	47,558			$	48,376			$	52,050			$	51,473			$	48,410			$	53,119			$	53,832
Net occupancy and equipment		14,750				14,587				14,825				14,855				15,330				15,756				16,676				15,617
Other operating expenses		37,060				36,986				37,713				37,501				36,622				36,787				35,846				33,945
Total non-interest expense	$	96,678			$	99,131			$	100,914			$	104,406			$	103,425			$	100,953			$	105,641			$	103,394
Balance Sheet Data:
Total assets	$	23,005,652			$	22,960,731			$	23,402,679			$	23,555,728			$	24,565,810			$	26,380,409			$	26,888,308			$	27,162,596
Non-purchased loans		15,610,681				15,786,809				16,307,621				16,224,539				17,030,378				18,247,431				18,419,958				18,401,495
Purchased loans		1,864,715				1,698,396				1,427,230				1,307,504				1,197,826				1,063,647				938,485				807,673
Investment securities – AFS		2,769,602				2,548,489				2,414,722				2,277,389				2,816,556				3,299,944				3,468,243				3,405,351
Deposits		18,476,868				18,186,215				18,440,078				18,474,259				18,809,190				20,723,598				21,287,405				21,450,356
Unfunded balance of closed loans		11,544,218				11,167,055				11,429,918				11,325,598				11,334,737				11,411,441				11,604,614				11,847,117
Common stockholders' equity		3,882,643				3,993,247				4,078,324				4,150,351				4,083,150				4,110,666				4,186,285				4,272,271

Bank OZK
Supplemental Quarterly Financial Data (Continued)
Unaudited

	3/31/19				6/30/19				9/30/19				12/31/19				3/31/20				6/30/20				9/30/20				12/31/20
	(Dollars in thousands, except per share amounts)
Allowance for Credit Losses:
Balance at beginning of period	$	102,264			$	105,954			$	106,642			$	109,001			$	108,525			$	316,409			$	374,494			$	377,273
Adoption of CECL(1) methodology		—				—				—				—				94,512				—				—				—
Net charge-offs		(2,991	)			(6,081	)			(5,495	)			(5,414	)			(4,291	)			(13,941	)			(4,421	)			(6,718	)
Provision for credit losses		6,681				6,769				7,854				4,938				117,663				72,026				7,200				6,750
Balance at end of period	$	105,954			$	106,642			$	109,001			$	108,525			$	316,409			$	374,494			$	377,273			$	377,305
Allowance for loan losses	$	105,954			$	106,642			$	109,001			$	108,525			$	238,737			$	306,196			$	308,847			$	295,824
Reserve for losses on unfunded loan commitments		—				—				—				—				77,672				68,298				68,426				81,481
Total allowance for credit losses	$	105,954			$	106,642			$	109,001			$	108,525			$	316,409			$	374,494			$	377,273			$	377,305
Selected Ratios:
Net interest margin – FTE(2)		4.53	%			4.45	%			4.26	%			4.15	%			3.96	%			3.74	%			3.69	%			3.88	%
Efficiency ratio		38.49				39.30				40.98				42.37				43.35				42.07				41.77				38.61
Net charge-offs to average non-purchased loans(2) (3)		0.05				0.12				0.07				0.10				0.08				0.05				0.09				0.14
Net charge-offs to average total loans(2)		0.07				0.14				0.12				0.12				0.10				0.29				0.09				0.14
Nonperforming loans to total loans(4)		0.22				0.15				0.17				0.15				0.16				0.18				0.15				0.25
Nonperforming assets to total assets(4)		0.21				0.25				0.26				0.18				0.19				0.19				0.17				0.21
Allowance for loan losses to total loans (5)		0.61				0.61				0.61				0.62				1.31				1.59				1.60				1.54
Loans past due 30 days or more, including past due non-accrual loans, to total loans(4)		0.28				0.13				0.14				0.19				0.18				0.13				0.13				0.16

	(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
Unaudited

	Three Months Ended December 31,																								Year Ended December 31,
	2020												2019												2020												2019
	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
Earning assets:
Interest earning deposits and federal funds sold	$	1,762,810			$	428				0.10	%		$	668,403			$	2,756				1.64	%		$	1,535,977			$	5,665				0.37	%		$	353,528			$	6,758				1.91	%
Investment securities:
Taxable		2,036,253				9,066				1.77				1,892,693				11,820				2.48				1,993,667				40,547				2.03				2,099,522				52,812				2.52
Tax-exempt – FTE		1,485,224				6,034				1.62				457,026				4,207				3.65				1,080,459				24,561				2.27				485,946				18,041				3.71
Non-purchased loans – FTE		18,378,050				243,330				5.27				16,260,467				241,056				5.88				17,797,684				945,222				5.31				15,861,797				982,430				6.19
Purchased loans		881,372				16,069				7.25				1,365,846				22,152				6.43				1,069,250				70,812				6.62				1,661,205				106,908				6.44
Total earning assets – FTE		24,543,709				274,927				4.46				20,644,435				281,991				5.42				23,477,037				1,086,807				4.63				20,461,998				1,166,949				5.70
Non-interest earning assets		2,258,105												2,370,753												2,291,135												2,297,372
Total assets	$	26,801,814											$	23,015,188											$	25,768,172											$	22,759,370
LIABILITIES AND STOCKHOLDERS’ EQUITY
Interest bearing liabilities:
Deposits:
Savings and interest bearing transaction	$	7,669,913			$	4,483				0.23	%		$	8,212,286			$	22,964				1.11	%		$	7,724,528			$	37,428				0.48	%		$	9,039,984			$	126,685				1.40	%
Time deposits of $100 or more		6,314,394				17,144				1.08				3,914,548				21,281				2.16				5,524,751				83,956				1.52				3,449,197				73,336				2.13
Other time deposits		3,294,323				8,980				1.08				3,392,019				17,386				2.03				3,511,220				50,429				1.44				2,872,676				58,337				2.03
Total interest bearing deposits		17,278,630				30,607				0.70				15,518,853				61,631				1.58				16,760,499				171,813				1.03				15,361,857				258,358				1.68
Repurchase agreements with customers		8,239				6				0.29				11,840				11				0.37				7,825				23				0.29				13,502				50				0.37
Other borrowings (1)		750,961				1,011				0.54				11,742				34				1.16				721,350				3,179				0.44				94,399				1,531				1.62
Subordinated notes		223,996				3,207				5.70				223,615				3,216				5.71				223,850				12,758				5.70				223,469				12,757				5.71
Subordinated debentures (1)		120,400				963				3.18				119,842				1,094				3.62				120,190				4,384				3.65				119,629				5,664				4.73
Total interest bearing liabilities		18,382,226				35,794				0.77				15,885,892				65,986				1.65				17,833,714				192,157				1.08				15,812,856				278,360				1.76
Non-interest bearing liabilities:
Non-interest bearing deposits		3,907,955												2,804,919												3,521,066												2,753,634
Other non-interest bearing liabilities		289,298												210,936												261,169												217,809
Total liabilities		22,579,479												18,901,747												21,615,949												18,784,299
Common stockholders’ equity		4,219,249												4,110,322												4,149,123												3,971,952
Noncontrolling interest		3,086												3,119												3,100												3,119
Total liabilities and stockholders’ equity	$	26,801,814											$	23,015,188											$	25,768,172											$	22,759,370
Net interest income – FTE					$	239,133											$	216,005											$	894,650											$	888,589
Net interest margin – FTE										3.88	%											4.15	%											3.81	%											4.34	%

(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 $0.03 million for the fourth quarter and $0.68 million for the full year of 2020 compared to $0.04 million for the fourth quarter and $0.90 million for the full year of 2019. In the absence of this interest capitalization, the rates on other borrowings would have been 0.55% for the fourth quarter and 0.53% for the full year of 2020 and 2.64% for the fourth quarter and 2.58% for the full year of 2019. Capitalized interest included in subordinated debentures totaled $0.01 million for the fourth quarter and $0.18 million for the full year of 2020, compared to $0.45 million for the fourth quarter and $0.89 million for the full year of 2019. In the absence of this interest capitalization, the rates on subordinated debentures would have been 3.20% for the fourth quarter and 3.80% for the full year of 2020 and 5.10% for the fourth quarter and 5.48% for the full year of 2019.

Bank OZK
Reconciliation of Non-GAAP Financial Measures

Calculation of Average Tangible Common Stockholders’ Equity
and the Annualized Return on Average Tangible Common Stockholders’ Equity
Unaudited

	Three Months Ended
	December 31,								September 30,				Year Ended
	2020				2019				2020				2020				2019
	(Dollars in thousands)
Net income available to common stockholders	$	120,513			$	100,806			$	109,253			$	291,898			$	425,906
Average common stockholders’ equity before noncontrolling interest	$	4,219,249			$	4,110,322			$	4,148,409			$	4,149,123			$	3,971,952
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		(15,578	)			(25,315	)			(17,461	)			(18,741	)			(29,784	)
Total average intangibles		(676,367	)			(686,104	)			(678,250	)			(679,530	)			(690,573	)
Average tangible common stockholders’ equity	$	3,542,882			$	3,424,218			$	3,470,159			$	3,469,593			$	3,281,379
Return on average common stockholders’ equity(1)		11.36	%			9.73	%			10.48	%			7.04	%			10.72	%
Return on average tangible common stockholders' equity(1)		13.53	%			11.68	%			12.52	%			8.41	%			12.98	%

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

Calculation of Total Tangible Common Stockholders’ Equity
and Tangible Book Value per Common Share
Unaudited

	December 31,								September 30,
	2020				2019				2020
	(In thousands, except per share amounts)
Total common stockholders’ equity before noncontrolling interest	$	4,272,271			$	4,150,351			$	4,186,285
Less intangible assets:
Goodwill		(660,789	)			(660,789	)			(660,789	)
Core deposit and other intangible assets, net of accumulated amortization		(14,669	)			(23,753	)			(16,462	)
Total intangibles		(675,458	)			(684,542	)			(677,251	)
Total tangible common stockholders' equity	$	3,596,813			$	3,465,809			$	3,509,034
Shares of common stock outstanding		129,350				128,951				129,342
Book value per common share	$	33.03			$	32.19			$	32.37
Tangible book value per common share	$	27.81			$	26.88			$	27.13

Calculation of Total Tangible Common Stockholders’ Equity
and the Ratio of Total Tangible Common Stockholders’ Equity
to Total Tangible Assets
Unaudited

	December 31,
	2020				2019
	(Dollars in thousands)
Total common stockholders’ equity before noncontrolling interest	$	4,272,271			$	4,150,351
Less intangible assets:
Goodwill		(660,789	)			(660,789	)
Core deposit and other intangible assets, net of accumulated amortization		(14,669	)			(23,753	)
Total intangibles		(675,458	)			(684,542	)
Total tangible common stockholders' equity	$	3,596,813			$	3,465,809
Total assets	$	27,162,596			$	23,555,728
Less intangible assets:
Goodwill		(660,789	)			(660,789	)
Core deposit and other intangible assets, net of accumulated amortization		(14,669	)			(23,753	)
Total intangibles		(675,458	)			(684,542	)
Total tangible assets	$	26,487,138			$	22,871,186
Ratio of total common stockholders’ equity to total assets		15.73	%			17.62	%
Ratio of total tangible common stockholders’ equity to total tangible assets		13.58	%			15.15	%

Calculation of Pre-Tax Pre-Provision Net Revenue
Unaudited

	Three Months Ended												Year Ended
	December 31,								September 30,				December 31,
	2020				2019				2020				2020				2019
	(Dollars in thousands)
Income before taxes	$	156,117			$	136,039			$	138,492			$	376,180			$	564,337
Provision for credit losses		6,750				4,938				7,200				203,639				26,241
Pre-tax pre-provision net revenue	$	162,867			$	140,977			$	145,692			$	579,819			$	590,578