• Bank OZK Announces Record First Quarter 2024 Earnings

    Source: Nasdaq GlobeNewswire / 17 Apr 2024 15:01:53   America/Chicago

    LITTLE ROCK, Ark., April 17, 2024 (GLOBE NEWSWIRE) -- Bank OZK (the “Bank”) (Nasdaq: OZK) today announced that net income available to common stockholders for the first quarter of 2024 was a record $171.5 million, a 3.4% increase from $165.9 million for the first quarter of 2023. Diluted earnings per common share for the first quarter of 2024 were a record $1.51, a 7.1% increase from $1.41 for the first quarter of 2023.

    Pre-tax pre-provision net revenue (“PPNR”) was a record $272.7 million for the first quarter of 2024, a 10.7% increase from $246.4 million for the first quarter of 2023. The calculation of PPNR and the reconciliation to generally accepted accounting principles (“GAAP”) are included in the schedules accompanying this release.

    Provision for credit losses was $42.9 million for the first quarter of 2024 compared to $35.8 million for the first quarter of 2023. The Bank’s total allowance for credit losses (“ACL”) was $536.9 million at March 31, 2024 compared to $393.8 million at March 31, 2023.

    The Bank’s annualized returns on average assets, average common stockholders’ equity and average tangible common stockholders’ equity for the first quarter of 2024 were 1.96%, 14.16% and 16.38%, respectively, compared to 2.41%, 15.24% and 17.94%, respectively, for the first quarter of 2023. The calculation of the Bank’s returns on average common stockholders’ equity and average tangible common stockholders’ equity and the reconciliations to GAAP are included in the schedules accompanying this release.

    George Gleason, Chairman and Chief Executive Officer, stated, “Our record net income and record diluted earnings per share in the quarter just ended are an excellent start to 2024. We feel that we are well positioned for the year, and we look forward to capitalizing on new opportunities.”

    KEY BALANCE SHEET METRICS

    Total loans were $28.03 billion at March 31, 2024, a 27.1% increase from $22.06 billion at March 31, 2023. Deposits were $29.41 billion at March 31, 2024, a 32.0% increase from $22.28 billion at March 31, 2023. Total assets were $36.03 billion at March 31, 2024, a 24.4% increase from $28.97 billion at March 31, 2023.

    Common stockholders’ equity was $4.93 billion at March 31, 2024, an 11.4% increase from $4.42 billion at March 31, 2023. Tangible common stockholders’ equity was $4.27 billion at March 31, 2024, a 13.5% increase from $3.76 billion at March 31, 2023. The Bank’s ratio of total common stockholders’ equity to total assets was 13.68% at March 31, 2024, compared to 15.27% at March 31, 2023. The Bank's ratio of total tangible common stockholders’ equity to total tangible assets was 12.06% at March 31, 2024, compared to 13.28% at March 31, 2023.

    Book value per common share was $43.44 at March 31, 2024, a 13.0% increase from $38.43 at March 31, 2023. Tangible book value per common share was $37.62 at March 31, 2024, a 15.1% increase from $32.68 at March 31, 2023.

    The calculations of the Bank’s total common stockholders’ equity, tangible common stockholders’ equity, ratio of total tangible common stockholders’ equity to total tangible assets and tangible book value per common share, and the reconciliations to GAAP are included in the schedules accompanying this release.

    ASSET QUALITY

    The Bank’s ratio of nonperforming non-purchased loans to total loans (excluding purchased loans) was 0.20% at March 31, 2024, compared to 0.15% as of March 31, 2023. The Bank’s ratio of nonperforming assets to total assets (excluding purchased loans, except for their inclusion in total assets) was 0.33% at March 31, 2024, compared to 0.34% as of March 31, 2023. The Bank's annualized ratio of net charge-offs to average total loans was 0.11% for the quarter ended March 31, 2024, compared to 0.14% for the quarter ended March 31, 2023.

    MANAGEMENT’S COMMENTS, CONFERENCE CALL, TRANSCRIPT AND FILINGS

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

    Management will conduct a conference call to take questions at 9:00 a.m. CT (10:00 a.m. ET) on Thursday, April 18, 2024. Interested parties may access the conference call live via webcast on the Bank’s investor relations website at https://ir.ozk.com/news/event-calendar, or may participate via telephone by registering using this online form. Upon registration, all telephone participants will receive the dial-in number along with a unique PIN number that can be used to access the call. A replay of the conference call webcast will be archived on the Bank’s website for at least 30 days.

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

    NON-GAAP FINANCIAL MEASURES

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

    FORWARD-LOOKING STATEMENTS

    This press release and other communications by the Bank include certain “forward-looking statements” regarding the Bank’s plans, expectations, thoughts, beliefs, estimates, goals and outlook for the future that are intended to be covered by the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on management’s expectations as well as certain assumptions and estimates made by, and information available to, management at the time. Those statements are not guarantees of future results or performance and are subject to certain known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those expressed in, or implied by, such forward-looking statements. These risks, uncertainties and other factors include, but are not limited to: potential delays or other problems in implementing the Bank’s growth, expansion and acquisition strategies, including obtaining regulatory or other approvals, delays in acquiring satisfactory sites, obtaining permits and designing, constructing and opening new offices, relocating, selling or closing existing offices, or integrating any 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 deposits or to retain or grow loans, including growth from unfunded closed loans; the ability to generate future revenue growth or to control future growth in non-interest expense; interest rate fluctuations, including changes in the yield curve between short-term and long-term interest rates or changes in the relative relationships of various interest rate indices; competitive factors and pricing pressures, including their effect on the Bank’s net interest margin or core spread; general economic, unemployment, credit market and real estate market conditions, and the effect of such conditions on the creditworthiness of borrowers, collateral values, the value of investment securities and asset recovery values; conditions within the banking industry; recently enacted and potential new laws and regulatory requirements or changes to existing laws and regulatory requirements, including changes affecting oversight of the financial services industry, changes intended to manage or mitigate climate and related environmental risks or changes in the interpretation and enforcement of such laws and requirements, and the costs and expenses to comply with new and/or existing legislation and regulatory requirements; uncertainty regarding changes in U.S. government monetary and fiscal policy; the impact of any U.S. federal government shutdown or budgetary crisis; FDIC special assessments or changes to regular assessments; the ability to keep pace with technological changes, including changes regarding artificial intelligence and maintaining cybersecurity; the impact of any failure in, or breach of, our operational or security systems or infrastructure, or those of third parties with whom we do business or others, including as a result of cyberattacks or an increase in the incidence or severity of fraud, illegal payments, security breaches or other illegal acts impacting the Bank, its customers or others; natural disasters; acts of war or terrorism; the potential impact of continuing inflationary pressures; the potential impact of supply chain disruptions; national or international political instability or military conflict, including the conflict in the Middle East and the ongoing war in Ukraine; competition for and costs of recruiting and retaining qualified personnel; impairment of our goodwill; adoption of new accounting standards, or changes in existing standards; and adverse results (including costs, fines, reputational harm and/or other negative effects) from current or future litigation, regulatory examinations or other legal and/or regulatory actions or rulings as well as other factors identified in this communication or as detailed from time to time in our public filings, including those factors described in the disclosures under the headings “Forward-Looking Information” and “Item 1A. Risk Factors” in our most recent Annual Report on Form 10-K for the year ended December 31, 2023 and our quarterly reports on Form 10-Q. Should one or more of the foregoing risks materialize, or should underlying assumptions prove incorrect, actual results or outcomes may vary materially from those described in, or implied by, such forward-looking statements. The Bank disclaims any obligation to update or revise any forward-looking statements based on the occurrence of future events, the receipt of new information or otherwise.

    GENERAL INFORMATION

    Bank OZK (Nasdaq: OZK) is a regional bank providing innovative financial solutions delivered by expert bankers with a relentless pursuit of excellence. Established in 1903, Bank OZK conducts banking operations in approximately 240 offices in eight states including Arkansas, Georgia, Florida, North Carolina, Texas, New York, California and Mississippi and had $36.03 billion in total assets as of March 31, 2024. For more information, visit www.ozk.com.

     
    Bank OZK
    Consolidated Balance Sheets
    Unaudited
     
      March 31, 2024 December 31, 2023
      (Dollars in thousands)
    ASSETS    
    Cash and cash equivalents $2,323,813  $2,149,529 
    Investment securities – available for sale (“AFS”)  3,072,391   3,244,371 
    Federal Home Loan Bank of Dallas (“FHLB”) and other bankers’ bank stocks  14,484   50,400 
    Non-purchased loans  27,781,091   26,195,030 
    Purchased loans  250,257   264,045 
    Allowance for loan losses  (365,935)  (339,394)
    Net Loans  27,665,413   26,119,681 
    Premises and equipment, net  681,865   676,821 
    Foreclosed assets  60,782   61,720 
    Accrued interest receivable  175,201   170,110 
    Bank owned life insurance (“BOLI”)  813,996   808,490 
    Goodwill  660,789   660,789 
    Other, net  561,170   295,546 
    Total assets $36,029,904  $34,237,457 
         
    LIABILITIES AND STOCKHOLDERS’ EQUITY    
    Deposits:    
    Demand non-interest bearing $4,046,054  $4,095,874 
    Savings and interest bearing transaction  9,504,445   9,074,296 
    Time  15,855,571   14,234,973 
    Total deposits  29,406,070   27,405,143 
    Other borrowings  202,009   805,318 
    Subordinated notes  347,961   347,761 
    Subordinated debentures  121,652   121,652 
    Reserve for losses on unfunded loan commitments  170,952   161,834 
    Accrued interest payable and other liabilities  513,420   255,773 
    Total liabilities $30,762,064  $29,097,481 
         
    Commitments and contingencies    
         
    Stockholders’ equity:    
    Preferred Stock: $0.01 par value; 100,000,000 shares authorized;
    14,000,000 issued and outstanding at March 31, 2024 and
    December 31, 2023
      338,980   338,980 
    Common Stock: $0.01 par value; 300,000,000 shares authorized;
    113,434,816 and 113,148,672 shares issued and outstanding at
    March 31, 2024 and December 31, 2023, respectively
      1,134   1,131 
    Additional paid-in capital  1,609,268   1,612,446 
    Retained earnings  3,424,672   3,283,818 
    Accumulated other comprehensive loss  (107,207)  (97,374)
    Total stockholders’ equity before noncontrolling interest  5,266,847   5,139,001 
    Noncontrolling interest  993   975 
    Total stockholders’ equity  5,267,840   5,139,976 
    Total liabilities and stockholders’ equity $36,029,904  $34,237,457 


     
    Bank OZK
    Consolidated Statements of Income
    Unaudited
     
      Three Months Ended
    March 31,
       2024   2023 
      (Dollars in thousands, except per share amounts)
    Interest income:    
    Non-purchased loans $586,981  $414,896 
    Purchased loans  4,960   6,518 
    Investment securities:    
    Taxable  9,333   10,171 
    Tax-exempt  11,173   9,264 
    Deposits with banks  24,606   7,870 
    Total interest income  637,053   448,719 
         
    Interest expense:    
    Deposits  254,323   93,632 
    Other borrowings  750   5,422 
    Subordinated notes  2,574   2,574 
    Subordinated debentures  2,472   2,239 
    Total interest expense  260,119   103,867 
         
    Net interest income  376,934   344,852 
    Provision for credit losses  42,923   35,829 
    Net interest income after provision for credit losses  334,011   309,023 
         
    Non-interest income:    
    Service charges on deposit accounts:    
    NSF fees     991 
    Overdraft fees  3,427   3,287 
    All other service charges  6,839   6,502 
    Trust income  2,324   2,033 
    BOLI income  5,506   4,974 
    Loan service, maintenance and other fees  6,343   4,076 
    Gains on sales of other assets  459   343 
    Net gains on investment securities  410   1,716 
    Other  3,776   3,887 
    Total non-interest income  29,084   27,809 
         
    Non-interest expense:    
    Salaries and employee benefits  69,564   63,249 
    Net occupancy and equipment  17,974   17,870 
    Other operating expenses  45,776   45,098 
    Total non-interest expense  133,314   126,217 
         
    Income before taxes  229,781   210,615 
    Provision for income taxes  54,226   40,703 
    Net income  175,555   169,912 
    Earnings attributable to noncontrolling interest  (18)  (12)
    Preferred stock dividends  4,047   4,047 
    Net income available to common stockholders $171,490  $165,853 
         
    Basic earnings per common share $1.51  $1.42 
         
    Diluted earnings per common share $1.51  $1.41 

    Bank OZK
    Consolidated Statements of Stockholders’ Equity
    Unaudited

      Preferred Stock Common Stock Additional
    Paid-in
    Capital
     Retained Earnings Accumulated Other Comprehensive (Loss) Income Non-Controlling Interest Total
      (Dollars in thousands, except per share amounts)
    Three months ended March 31, 2024:              
    Balances - December 31, 2023 $338,980 $1,131  $1,612,446  $3,283,818  $(97,374) $975 $5,139,976 
    Cumulative effect of change in accounting principle        12,690       12,690 
    Balances - January 1, 2024  338,980  1,131   1,612,446   3,296,508   (97,374)  975  5,152,666 
    Net income          175,555        175,555 
    Earnings attributable to noncontrolling interest          (18)     18   
    Total other comprehensive loss             (9,833)    (9,833)
    Preferred stock dividends, $0.28906 per share          (4,047)       (4,047)
    Common stock dividends, $0.38 per share          (43,326)       (43,326)
    Issuance of 484,818 shares of common stock pursuant to stock-based compensation plans    5   179           184 
    Repurchase and cancellation of 184,415 shares of common stock withheld for tax pursuant to stock-based compensation plans    (2)  (8,008)          (8,010)
    Stock-based compensation expense       4,651           4,651 
    Forfeitures of 14,259 shares of unvested restricted common stock                   
    Balances - March 31, 2024 $338,980 $1,134  $1,609,268  $3,424,672  $(107,207) $993 $5,267,840 
                   


    Three months ended March 31, 2023:              
    Balances - December 31, 2022 $338,980 $1,172  $1,753,941  $2,773,135  $(177,649) $1,359 $4,690,938 
    Net income          169,912        169,912 
    Earnings attributable to noncontrolling interest          (12)     12   
    Total other comprehensive income             35,972     35,972 
    Preferred stock dividends, $0.28906 per share          (4,047)       (4,047)
    Common stock dividends, $0.34 per share          (40,084)       (40,084)
    Issuance of 473,039 shares of common stock pursuant to stock-based
    compensation plans
        5   518           523 
    Repurchase and cancellation of 2,348,138 shares of common stock under share repurchase program    (24)  (85,315)          (85,339)
    Repurchase and cancellation of 215,362 shares of common stock withheld for tax pursuant to stock-based compensation plans.    (2)  (8,672)          (8,674)
    Stock-based compensation expense       4,097           4,097 
    Forfeitures of 6,359 shares of unvested restricted common stock                   
    Balances - March 31, 2023 $338,980 $1,151  $1,664,569  $2,898,904  $(141,677) $1,371 $4,763,298 


     
    Bank OZK
    Summary of Non-Interest Expense
    Unaudited
     
     Three Months Ended
    March 31,
      2024   2023
     (Dollars in thousands)
    Salaries and employee benefits$69,564  $63,249
    Net occupancy and equipment 17,974   17,870
    Other operating expenses:    
    Software and data processing 11,115   9,283
    Deposit insurance and assessments 8,250   4,148
    Professional and outside services 5,970   5,105
    Advertising and public relations 3,897   4,036
    Amortization of CRA and tax credit investments (1)    6,414
    Other 16,544   16,112
    Total non-interest expense$133,314  $126,217

    (1) Effective January 1, 2024, the Bank adopted ASU 2023-02, Investments-Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method, which resulted in the amortization of the Bank's CRA and tax credit investments being included in income tax expense instead of non-interest expense.

     
    Bank OZK
    Summary of Total Loans Outstanding
    Unaudited
     
     March 31, 2024 December 31, 2023
     (Dollars in thousands)
    Real estate:       
    Residential 1-4 family$967,941  3.5% $961,338  3.6%
    Non-farm/non-residential 5,590,632  19.9   5,309,239  20.1 
    Construction/land development 12,322,321  44.0   11,653,487  44.0 
    Agricultural 252,232  0.9   256,423  1.0 
    Multifamily residential 2,408,875  8.6   2,064,106  7.8 
    Total real estate 21,542,001  76.9   20,244,593  76.5 
    Commercial and industrial 1,355,125  4.8   1,269,610  4.8 
    Consumer 3,169,016  11.3   2,965,042  11.2 
    Other 1,965,206  7.0   1,979,830  7.5 
    Total loans 28,031,348  100.0%  26,459,075  100.0%
    Allowance for loan losses (365,935)    (339,394)  
    Net loans$27,665,413    $26,119,681   


     
    Bank OZK
    Allowance for Credit Losses
    Unaudited
     
     Allowance for Loan Losses Reserve for Losses on Outstanding Credit Commitments Total Allowance for Credit Losses
     (Dollars in thousands)
    Three months ended March 31, 2024:     
    Balances – December 31, 2023$339,394  $161,834 $501,228 
    Net charge-offs (7,264)    (7,264)
    Provision for credit losses 33,805   9,118  42,923 
    Balances – March 31, 2024$365,935  $170,952 $536,887 
          
    Three months ended March 31, 2023:     
    Balances – December 31, 2022$208,858  $156,419 $365,277 
    Net charge-offs (7,339)    (7,339)
    Provision for credit losses 20,506   15,323  35,829 
    Balances – March 31, 2023$222,025  $171,742 $393,767 


     
    Bank OZK
    Deposits – By Customer Type
    Unaudited
     
     March 31, 2024 December 31, 2023
     (Dollars in thousands)
    Non-interest bearing$4,046,054 13.8% $4,095,874 14.9%
    Interest bearing:       
    Consumer and commercial:       
    Consumer – Non-Time 2,807,465 9.5   2,792,199 10.2 
    Consumer – Time 11,545,695 39.3   10,216,217 37.3 
    Commercial – Non-Time 2,860,322 9.7   2,439,175 8.9 
    Commercial – Time 868,118 3.0   767,566 2.8 
    Public funds 3,631,328 12.3   3,725,766 13.6 
    Brokered 2,842,124 9.7   2,655,317 9.7 
    Reciprocal 804,964 2.7   713,029 2.6 
    Total deposits$29,406,070 100.0% $27,405,143 100.0%


     
    Bank OZK
    Selected Consolidated Financial Data
    Unaudited
     
     Three Months Ended
    March 31,
      2024   2023  %
    Change
     (Dollars in thousands, except per share amounts)
    Income statement data:     
    Net interest income$376,934  $344,852  9.3%
    Provision for credit losses 42,923   35,829  19.8 
    Non-interest income 29,084   27,809  4.6 
    Non-interest expense 133,314   126,217  5.6 
    Net income 175,555   169,912  3.3 
    Preferred stock dividends 4,047   4,047   
    Net income available to common stockholders 171,490   165,853  3.4 
    Pre-tax pre-provision net revenue (1) 272,704   246,444  10.7 
    Common share and per common share data:     
    Diluted earnings per common share$1.51  $1.41  7.1%
    Basic earnings per common share 1.51   1.42  6.3 
    Common stock dividends per share 0.38   0.34  11.8 
    Book value per share 43.44   38.43  13.0 
    Tangible book value per common share (1) 37.62   32.68  15.1 
    Weighted-average diluted shares outstanding (thousands) 113,883   117,405  (3.0)
    End of period shares outstanding (thousands) 113,435   115,080  (1.4)
    Balance sheet data at period end:     
    Total assets$36,029,904  $28,971,170  24.4%
    Total loans 28,031,348   22,062,006  27.1 
    Non-purchased loans 27,781,091   21,700,941  28.0 
    Purchased loans 250,257   361,065  (30.7)
    Allowance for loan losses 365,935   222,025  64.8 
    Foreclosed assets 60,782   66,227  (8.2)
    Investment securities – AFS 3,072,391   3,422,031  (10.2)
    Goodwill and intangibles 660,789   662,354  (0.2)
    Deposits 29,406,070   22,282,983  32.0 
    Other borrowings 202,009   994,079  (79.7)
    Subordinated notes 347,961   347,147  0.2 
    Subordinated debentures 121,652   121,652   
    Unfunded balance of outstanding credit commitments 20,458,796   20,965,040  (2.4)
    Reserve for losses on unfunded loan commitments 170,952   171,742  (0.5)
    Preferred stock 338,980   338,980   
    Total common stockholders’ equity (1)  4,927,867   4,422,947  11.4 
    Net unrealized losses on investment securities AFS included in stockholders' equity (107,207)  (141,677)  
    Loan (including purchased loans) to deposit ratio 95.33%  99.01%  
    Selected ratios:     
    Return on average assets (2) 1.96%  2.41%  
    Return on average common stockholders' equity (1) (2) 14.16   15.24   
    Return on average tangible common stockholders' equity (1) (2) 16.38   17.94   
    Average common equity to total average assets 13.84   15.78   
    Net interest margin – FTE (2) 4.71   5.54   
    Efficiency ratio 32.59   33.63   
    Net charge-offs to average non-purchased loans (2) (3) 0.11   0.15   
    Net charge-offs to average total loans (2) 0.11   0.14   
    Nonperforming loans to total loans (4) 0.20   0.15   
    Nonperforming assets to total assets (4) 0.33   0.34   
    Allowance for loan losses to total loans (5) 1.31   1.01   
    Allowance for credit losses to total loans and unfunded credit commitments 1.11   0.92   
    Other information:     
    Non-accrual loans (4)$56,341  $33,371   
    Accruing loans - 90 days past due (4)       

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

     
    Bank OZK
    Selected Consolidated Financial Data (continued)
    Unaudited
     
     Three Months Ended
     March 31, 2024 December 31, 2023 %
    Change
     (Dollars in thousands, except per share amounts)
    Income statement data:     
    Net interest income$376,934  $370,548  1.7%
    Provision for credit losses 42,923   43,832  (2.1)
    Non-interest income 29,084   37,027  (21.5)
    Non-interest expense 133,314   145,011  (8.1)
    Net income 175,555   175,132  0.2 
    Preferred stock dividends 4,047   4,047   
    Net income available to common stockholders 171,490   171,079  0.2 
    Pre-tax pre-provision net revenue (1) 272,704   262,564  3.9 
    Common share and per common share data:     
    Diluted earnings per common share$1.51  $1.50  0.7%
    Basic earnings per common share 1.51   1.51   
    Common stock dividends per share 0.38   0.37  2.7 
    Book value per share 43.44   42.42  2.4 
    Tangible book value per common share (1) 37.62   36.58  2.8 
    Weighted-average diluted shares outstanding (thousands) 113,883   113,756  0.1 
    End of period shares outstanding (thousands) 113,435   113,149  0.3 
    Balance sheet data at period end:     
    Total assets$36,029,904  $34,237,457  5.2%
    Total loans 28,031,348   26,459,075  5.9 
    Non-purchased loans 27,781,091   26,195,030  6.1 
    Purchased loans 250,257   264,045  (5.2)
    Allowance for loan losses 365,935   339,394  7.8 
    Foreclosed assets 60,782   61,720  (1.5)
    Investment securities – AFS 3,072,391   3,244,371  (5.3)
    Goodwill and intangibles 660,789   660,789   
    Deposits 29,406,070   27,405,143  7.3 
    Other borrowings 202,009   805,318  (74.9)
    Subordinated notes 347,961   347,761  0.1 
    Subordinated debentures 121,652   121,652   
    Unfunded balance of outstanding credit commitments 20,458,796   20,561,029  (0.5)
    Reserve for losses on unfunded loan commitments 170,952   161,834  5.6 
    Preferred stock 338,980   338,980   
    Total common stockholders’ equity (1)  4,927,867   4,800,021  2.7 
    Net unrealized losses on investment securities AFS included in stockholders' equity (107,207)  (97,374)  
    Loan (including purchased loans) to deposit ratio 95.33%  96.55%  
    Selected ratios:     
    Return on average assets (2) 1.96%  2.04%  
    Return on average common stockholders' equity (1) (2) 14.16   14.58   
    Return on average tangible common stockholders' equity (1) (2) 16.38   16.99   
    Average common equity to total average assets 13.84   13.99   
    Net interest margin – FTE (2) 4.71   4.82   
    Efficiency ratio 32.59   35.33   
    Net charge-offs to average non-purchased loans (2) (3) 0.11   0.07   
    Net charge-offs to average total loans (2) 0.11   0.06   
    Nonperforming loans to total loans (4) 0.20   0.23   
    Nonperforming assets to total assets (4) 0.33   0.36   
    Allowance for loan losses to total loans (5) 1.31   1.28   
    Allowance for credit losses to total loans and unfunded credit commitments 1.11   1.07   
    Other information:     
    Non-accrual loans (4)$56,341  $60,982   
    Accruing loans - 90 days past due (4)       

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

     
    Bank OZK
    Supplemental Quarterly Financial Data
    Unaudited
     
     3/31/24 12/31/23 9/30/23 6/30/23 3/31/23
     (Dollars in thousands)
    Earnings summary:         
    Net interest income$376,934  $370,548  $367,261  $356,824  $344,852 
    Federal tax (FTE) adjustment 3,030   2,925   2,632   2,602   2,603 
    Net interest income (FTE) 379,964   373,473   369,893   359,426   347,455 
    Provision for credit losses (42,923)  (43,832)  (44,036)  (41,774)  (35,829)
    Non-interest income 29,084   37,027   25,727   31,987   27,809 
    Non-interest expense (133,314)  (145,011)  (128,978)  (129,355)  (126,217)
    Pre-tax income (FTE) 232,811   221,657   222,606   220,284   213,218 
    FTE adjustment (3,030)  (2,925)  (2,632)  (2,602)  (2,603)
    Provision for income taxes (54,226)  (43,600)  (46,144)  (45,717)  (40,703)
    Noncontrolling interest (18)  (6)  (37)  (1)  (12)
    Preferred stock dividend (4,047)  (4,047)  (4,047)  (4,047)  (4,047)
    Net income available to common stockholders$171,490  $171,079  $169,746  $167,917  $165,853 
    Earnings per common share – diluted$1.51  $1.50  $1.49  $1.47  $1.41 
    Pre-tax pre-provision net revenue (1)$272,704  $262,564  $264,010  $259,456  $246,444 
    Selected balance sheet data at period end:         
    Total assets$36,029,904  $34,237,457  $32,767,328  $30,761,870  $28,971,170 
    Non-purchased loans 27,781,091   26,195,030   25,051,214   23,291,785   21,700,941 
    Purchased loans 250,257   264,045   280,526   315,661   361,065 
    Investment securities – AFS 3,072,391   3,244,371   3,153,817   3,262,366   3,422,031 
    Deposits 29,406,070   27,405,143   25,552,856   23,983,397   22,282,983 
    Unfunded balance of outstanding credit commitments 20,458,796   20,561,029   20,625,371   21,119,761   20,965,040 
    Allowance for credit losses:         
    Balance at beginning of period$501,228  $461,486  $426,820  $393,767  $365,277 
    Net charge-offs (7,264)  (4,090)  (9,370)  (8,721)  (7,339)
    Provision for credit losses 42,923   43,832   44,036   41,774   35,829 
    Balance at end of period$536,887  $501,228  $461,486  $426,820  $393,767 
    Allowance for loan losses$365,935  $339,394  $303,358  $263,188  $222,025 
    Reserve for losses on unfunded loan commitments 170,952   161,834   158,128   163,632   171,742 
    Total allowance for credit losses$536,887  $501,228  $461,486  $426,820  $393,767 
    Selected ratios:         
    Net interest margin – FTE (2) 4.71%  4.82%  5.05%  5.32%  5.54%
    Efficiency ratio 32.59   35.33   32.60   33.05   33.63 
    Net charge-offs to average non-purchased loans (2) (3) 0.11   0.07   0.17   0.03   0.15 
    Net charge-offs to average total loans (2) 0.11   0.06   0.15   0.15   0.14 
    Nonperforming loans to total loans (4) 0.20   0.23   0.25   0.15   0.15 
    Nonperforming assets to total assets (4) 0.33   0.36   0.40   0.32   0.34 
    Allowance for loan losses to total loans (5) 1.31   1.28   1.20   1.11   1.01 
    Allowance for credit losses to total loans and unfunded credit commitments 1.11   1.07   1.00   0.95   0.92 
    Loans past due 30 days or more, including past due non-accrual loans, to total loans (4) 0.17   0.20   0.21   0.14   0.15 

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

     
    Bank OZK
    Average Consolidated Balance Sheets and Net Interest Analysis – FTE
    Unaudited
     
     Three Months Ended March 31,
      2024   2023 
     Average Balance Income/ Expense Yield/Rate Average Balance Income/ Expense Yield/Rate
     (Dollars in thousands)
    ASSETS           
    Interest earning assets:           
    Interest earning deposits$1,861,871 $24,606 5.32% $739,521 $7,870 4.32%
    Investment securities:           
    Taxable 2,052,980  9,333 1.83   2,450,756  10,171 1.68 
    Tax-exempt – FTE 1,172,116  14,144 4.85   1,027,806  11,727 4.63 
    Non-purchased loans – FTE 27,116,207  587,040 8.71   20,850,529  415,037 8.07 
    Purchased loans 257,788  4,960 7.74   370,887  6,518 7.13 
    Total earning assets – FTE 32,460,962  640,083 7.93   25,439,499  451,323 7.19 
    Non-interest earning assets 2,747,337      2,517,047    
    Total assets$35,208,299     $27,956,546    
    LIABILITIES AND STOCKHOLDERS’ EQUITY        
    Interest bearing liabilities:           
    Deposits:           
    Savings and interest bearing transaction$9,182,745 $66,902 2.93% $9,733,499 $42,515 1.77%
    Time deposits 15,476,373  187,421 4.87   7,563,013  51,117 2.74 
    Total interest bearing deposits 24,659,118  254,323 4.15   17,296,512  93,632 2.20 
    Other borrowings 85,041  750 3.55   467,098  5,422 4.71 
    Subordinated notes 347,864  2,574 2.98   347,049  2,574 3.01 
    Subordinated debentures 121,652  2,472 8.18   121,638  2,239 7.47 
    Total interest bearing liabilities 25,213,675  260,119 4.15   18,232,297  103,867 2.31 
    Non-interest bearing liabilities:           
    Non-interest bearing deposits 4,100,769      4,471,407    
    Other non-interest bearing liabilities 682,455      499,997    
    Total liabilities 29,996,899      23,203,701    
    Total stockholders’ equity before noncontrolling interest 5,210,418      4,751,481    
    Noncontrolling interest 982      1,364    
    Total liabilities and stockholders’ equity$35,208,299     $27,956,546    
    Net interest income – FTE  $379,964     $347,456  
    Net interest margin – FTE    4.71%     5.54%
    Core spread (1)    4.56%     5.87%

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

     
    Bank OZK
    Reconciliation of Non-GAAP Financial Measures

    Calculation of Average Common Stockholders’ Equity,
    Average Tangible Common Stockholders’ Equity
    and the Annualized Returns on Average Common Stockholders’ Equity and
    Average Tangible Common Stockholders’ Equity

    Unaudited
     
     Three Months Ended
    March 31,
     Three Months Ended
    December 31,
      2024   2023   2023 
     (Dollars in thousands)
    Net income available to common stockholders$171,490  $165,853  $171,079 
    Average stockholders’ equity before noncontrolling interest$5,210,418  $4,751,481  $4,995,217 
    Less average preferred stock (338,980)  (338,980)  (338,980)
    Total average common stockholders’ equity 4,871,438   4,412,501   4,656,237 
    Less average intangible assets:     
    Goodwill (660,789)  (660,789)  (660,789)
    Core deposit and other intangible assets, net of accumulated amortization    (2,243)   
    Total average intangibles (660,789)  (663,032)  (660,789)
    Average tangible common stockholders’ equity$4,210,649  $3,749,469  $3,995,448 
    Return on average common stockholders’ equity(1) 14.16%  15.24%  14.58%
    Return on average tangible common stockholders’ equity(1) 16.38%  17.94%  16.99%

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

     
    Calculation of Total Common Stockholders’ Equity,
    Total Tangible Common Stockholders’ Equity
    and Tangible Book Value per Common Share
    Unaudited
     
     March 31, December 31,
      2024   2023   2023 
     (In thousands, except per share amounts)
    Total stockholders’ equity before noncontrolling interest$5,266,847  $4,761,927  $5,139,001 
    Less preferred stock (338,980)  (338,980)  (338,980)
    Total common stockholders’ equity$4,927,867  $4,422,947  $4,800,021 
    Less intangible assets:     
    Goodwill (660,789)  (660,789)  (660,789)
    Core deposit and other intangible assets, net of accumulated amortization    (1,565)   
    Total intangibles (660,789)  (662,354)  (660,789)
    Total tangible common stockholders’ equity$4,267,078  $3,760,593  $4,139,232 
    Shares of common stock outstanding 113,435   115,080   113,149 
    Book value per common share$43.44  $38.43  $42.42 
    Tangible book value per common share$37.62  $32.68  $36.58 


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

    Unaudited
     
     March 31,
      2024   2023 
     (Dollars in thousands)
    Total stockholders’ equity before noncontrolling interest$5,266,847  $4,761,927 
    Less preferred stock (338,980)  (338,980)
    Total common stockholders’ equity$4,927,867  $4,422,947 
    Less intangible assets:   
    Goodwill (660,789)  (660,789)
    Core deposit and other intangible assets, net of accumulated amortization    (1,565)
    Total intangibles (660,789)  (662,354)
    Total tangible common stockholders’ equity 4,267,078   3,760,593 
    Total assets$36,029,904  $28,971,170 
    Less intangible assets:   
    Goodwill$(660,789) $(660,789)
    Core deposit and other intangible assets, net of accumulated amortization    (1,565)
    Total intangibles (660,789)  (662,354)
    Total tangible assets$35,369,115  $28,308,816 
    Ratio of total common stockholders’ equity to total assets 13.68%  15.27%
    Ratio of total tangible common stockholders’ equity to total tangible assets 12.06%  13.28%


      
    Calculation of Pre-Tax Pre-Provision Net Revenue
    Unaudited
     
      
     Three Months Ended 
     March 31, December 31, September 30, June 30, March 31, 
      2024  2023  2023  2023  2023 
     (Dollars in thousands) 
    Net income available to common stockholders$171,490 $171,079 $169,746 $167,917 $165,853 
    Preferred stock dividends 4,047  4,047  4,047  4,047  4,047 
    Earnings attributable to noncontrolling interest 18  6  37  1  12 
    Provision for income taxes 54,226  43,600  46,144  45,717  40,703 
    Provision for credit losses 42,923  43,832  44,036  41,774  35,829 
    Pre-tax pre-provision net revenue$272,704 $262,564 $264,010 $259,456 $246,444 


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

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