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Bank OZK Announces Record First Quarter 2024 Earnings
Источник: Nasdaq GlobeNewswire / 17 апр 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
UnauditedMarch 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, 2023338,980 338,980 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, respectively1,134 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
UnauditedThree 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
UnauditedPreferred Stock Common Stock Additional
Paid-in
CapitalRetained 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
UnauditedThree 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
UnauditedMarch 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
UnauditedAllowance 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
UnauditedMarch 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
UnauditedThree 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)
UnauditedThree 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
Unaudited3/31/24 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
UnauditedThree 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
UnauditedThree 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
UnauditedMarch 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
UnauditedMarch 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
UnauditedThree 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 
