• Bank OZK Announces Record Fourth Quarter and Full Year 2023 Earnings

    Источник: Nasdaq GlobeNewswire / 18 янв 2024 15:01:48   America/Chicago

    LITTLE ROCK, Ark., Jan. 18, 2024 (GLOBE NEWSWIRE) -- Bank OZK (the “Bank”) (Nasdaq: OZK) today announced that net income available to common stockholders for the fourth quarter of 2023 was a record $171.1 million, a 7.7% increase from $158.8 million for the fourth quarter of 2022. Diluted earnings per common share for the fourth quarter of 2023 were a record $1.50, an 11.9% increase from $1.34 for the fourth quarter of 2022.

    For the full year of 2023, net income available to common stockholders was $674.6 million, a 23.2% increase from $547.5 million for the full year of 2022. Diluted earnings per common share for the full year of 2023 were $5.87, a 29.3% increase from $4.54 for the full year of 2022.

    Pre-tax pre-provision net revenue (“PPNR”) was $262.6 million for the fourth quarter of 2023, an 8.9% increase from $241.0 million for the fourth quarter of 2022. For the full year of 2023, PPNR was $1.03 billion, a 28.3% increase from $0.81 billion for the full year of 2022. The calculation of PPNR and the reconciliation to generally accepted accounting principles (“GAAP”) are included in the schedules accompanying this release.

    The Bank’s annualized returns on average assets, average common stockholders’ equity and average tangible common stockholders’ equity for the fourth quarter of 2023 were 2.04%, 14.58% and 16.99%, respectively, compared to 2.35%, 14.76% and 17.48%, respectively, for the fourth quarter of 2022. The Bank’s returns on average assets, average common stockholders’ equity and average tangible common stockholders’ equity for the full year of 2023 were 2.20%, 14.93% and 17.50%, respectively, compared to 2.08%, 12.66% and 14.97%, respectively, for the full year of 2022. The results for the fourth quarter and full year of 2023 include the impact of a $9.9 million FDIC special assessment recorded during the fourth 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, “We are pleased to have reported record net income and record diluted earnings per share in each quarter of 2023, resulting in net income available to common stockholders for the year of $674.6 million and diluted earnings per common share of $5.87. Our goal for 2024 is to continue to improve our record annual net income and diluted earnings per common share achieved in 2023, and we believe that is a reasonable goal, notwithstanding what appears likely to remain a challenging macroeconomic environment. We feel that we are well positioned for the coming year, and we look forward to capitalizing on new opportunities.”

    KEY BALANCE SHEET METRICS

    Total loans were $26.46 billion at December 31, 2023, a 27.3% increase from $20.78 billion at December 31, 2022. Deposits were $27.41 billion at December 31, 2023, a 27.5% increase from $21.50 billion at December 31, 2022. Total assets were $34.24 billion at December 31, 2023, a 23.8% increase from $27.66 billion at December 31, 2022.

    Common stockholders’ equity was $4.80 billion at December 31, 2023, a 10.3% increase from $4.35 billion at December 31, 2022. Tangible common stockholders’ equity was $4.14 billion at December 31, 2023, a 12.3% increase from $3.69 billion at December 31, 2022. The Bank did not repurchase any shares during the three months ended December 31, 2023. During the full year of 2023, the Bank repurchased 4.3 million shares for $151.5 million, which equates to a weighted average cost of approximately $35.19 per share.

    Book value per common share was $42.42 at December 31, 2023, a 14.2% increase from $37.13 at December 31, 2022. Tangible book value per common share was $36.58 at December 31, 2023, a 16.2% increase from $31.47 at December 31, 2022.

    The Bank’s ratio of total common stockholders’ equity to total assets was 14.02% at December 31, 2023, compared to 15.73% at December 31, 2022. Its ratio of total tangible common stockholders’ equity to total tangible assets was 12.33% at December 31, 2023, compared to 13.66% at December 31, 2022. The calculations of the Bank’s total common stockholders’ equity, tangible common stockholders’ equity, tangible book value per common share, and ratio of total tangible common stockholders’ equity to total tangible assets and the reconciliations to GAAP are included in the schedules accompanying this release.

    ASSET QUALITY

    The Bank’s ratio of nonperforming non-purchased loans to total loans (excluding purchased loans) was 0.23% at December 31, 2023, compared to 0.22% as of December 31, 2022. The Bank’s ratio of nonperforming assets to total assets (excluding purchased loans, except for their inclusion in total assets) was 0.36% at December 31, 2023, compared to 0.19% as of December 31, 2022. The Bank's annualized ratio of net charge-offs of total loans to average total loans was 0.06% for the fourth quarter and 0.13% for the twelve months ended December 31, 2023, compared to 0.06% for the fourth quarter and 0.04% for the twelve months ended December 31, 2022.

    MANAGEMENT’S COMMENTS, CONFERENCE CALL, TRANSCRIPT AND FILINGS

    In connection with this release, the Bank released management’s comments on its quarterly results, which are available at https://ir.ozk.com. This release should be read in conjunction with management’s comments on the fourth quarter and full year 2023 results.

    Management will conduct a conference call to take questions at 10:00 a.m. CT (11:00 a.m. ET) on Friday, January 19, 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 hiring or retaining qualified personnel, obtaining regulatory or other approvals, delays in acquiring satisfactory sites, obtaining permits and designing, constructing and opening new offices or relocating, selling or closing existing offices; 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, including the effects of recent failures of other financial institutions; recently enacted and potential laws and regulatory requirements or changes to existing laws and regulatory requirements, including changes affecting oversight of the financial services industry, changes intended to manage or mitigate climate and related environmental risks or changes in the interpretation and enforcement of such laws and requirements, and the costs and expenses to comply with new and/or existing legislation and regulatory requirements; uncertainty regarding changes in U.S. government monetary and fiscal policy; 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 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 cyber-attacks 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; the competition and costs of recruiting and retaining human talent; impairment of our goodwill; adoption of new accounting standards, or changes in existing standards; and adverse results (including costs, fines, reputational harm and/or other negative effects) from current or future litigation, regulatory examinations or other legal and/or regulatory actions or rulings as well as other factors identified in this communication or as detailed from time to time in our public filings, including those factors described in the disclosures under the headings “Forward-Looking Information” and “Item 1A. Risk Factors” in our most recent Annual Report on Form 10-K for the year ended December 31, 2022 and our quarterly reports on Form 10-Q. Should one or more of the foregoing risks materialize, or should underlying assumptions prove incorrect, actual results or outcomes may vary materially from those described in, or implied by, such forward-looking statements. The Bank disclaims any obligation to update or revise any forward-looking statements based on the occurrence of future events, the receipt of new information or otherwise.

    GENERAL INFORMATION

    Bank OZK (Nasdaq: OZK) is a regional bank providing innovative financial solutions delivered by expert bankers with a relentless pursuit of excellence. Established in 1903, Bank OZK conducts banking operations in approximately 240 offices in eight states including Arkansas, Georgia, Florida, North Carolina, Texas, New York, California and Mississippi and had $34.24 billion in total assets as of December 31, 2023. For more information, visit www.ozk.com.

     
    Bank OZK
    Consolidated Balance Sheets
    Unaudited
     
      December 31,
       2023   2022 
      (Dollars in thousands)
    ASSETS    
    Cash and cash equivalents $2,149,529  $1,033,454 
    Investment securities – available for sale (“AFS”)  3,244,371   3,491,613 
    Investment securities – trading     8,817 
    Federal Home Loan Bank of Dallas (“FHLB”) and other bankers’ bank stocks  50,400   42,406 
    Non-purchased loans  26,195,030   20,400,154 
    Purchased loans  264,045   378,637 
    Allowance for loan losses  (339,394)  (208,858)
    Net Loans  26,119,681   20,569,933 
    Premises and equipment, net  676,821   678,405 
    Foreclosed assets  61,720   6,616 
    Accrued interest receivable  170,110   125,130 
    Bank owned life insurance (“BOLI”)  808,490   789,805 
    Goodwill and other intangible assets, net  660,789   663,543 
    Other, net  295,546   246,846 
    Total assets $34,237,457  $27,656,568 
         
    LIABILITIES AND STOCKHOLDERS’ EQUITY    
    Deposits:    
    Demand non-interest bearing $4,095,874  $4,658,451 
    Savings and interest bearing transaction  9,074,296   9,905,717 
    Time  14,234,973   6,935,975 
    Total deposits  27,405,143   21,500,143 
    Other borrowings  805,318   606,666 
    Subordinated notes  347,761   346,947 
    Subordinated debentures  121,652   121,591 
    Reserve for losses on unfunded loan commitments  161,834   156,419 
    Accrued interest payable and other liabilities  255,773   233,864 
    Total liabilities $29,097,481  $22,965,630 
         
    Commitments and contingencies    
         
    Stockholders’ equity:    
    Preferred Stock: $0.01 par value; 100,000,000 shares authorized;
    14,000,000 issued and outstanding at December 31, 2023 and
    December 31, 2022
      338,980   338,980 
    Common Stock: $0.01 par value; 300,000,000 shares authorized;
    113,148,672 and 117,176,928 shares issued and outstanding at
    December 31, 2023 and December 31, 2022, respectively
      1,131   1,172 
    Additional paid-in capital  1,612,446   1,753,941 
    Retained earnings  3,283,818   2,773,135 
    Accumulated other comprehensive loss  (97,374)  (177,649)
    Total stockholders’ equity before noncontrolling interest  5,139,001   4,689,579 
    Noncontrolling interest  975   1,359 
    Total stockholders’ equity  5,139,976   4,690,938 
    Total liabilities and stockholders’ equity $34,237,457  $27,656,568 


     
    Bank OZK
    Consolidated Statements of Income
    Unaudited
     
      Three Months Ended
    December 31,
     Year Ended
    December 31,
       2023   2022  2023   2022
      (Dollars in thousands, except per share amounts)
    Interest income:        
    Non-purchased loans $557,844  $367,019 $1,968,289  $1,158,332
    Purchased loans  5,412   7,141  23,257   31,441
    Investment securities:        
    Taxable  9,667   10,280  39,429   41,526
    Tax-exempt  10,670   8,521  38,957   22,653
    Deposits with banks  21,901   5,961  58,241   12,116
    Total interest income  605,494   398,922  2,128,173   1,266,068
             
    Interest expense:        
    Deposits  218,474   53,230  627,050   94,574
    Other borrowings  11,329   8,534  41,669   13,033
    Subordinated notes  2,631   2,631  10,439   10,439
    Subordinated debentures  2,512   2,039  9,530   5,780
    Total interest expense  234,946   66,434  688,688   123,826
             
    Net interest income  370,548   332,488  1,439,485   1,142,242
    Provision for credit losses  43,832   32,508  165,470   83,494
    Net interest income after provision for credit losses  326,716   299,980  1,274,015   1,058,748
             
    Non-interest income:        
    Service charges on deposit accounts:        
    NSF and overdraft fees  4,700   4,467  18,059   17,724
    All other service charges  7,333   7,138  27,995   28,102
    Trust income  2,165   1,977  8,524   7,990
    BOLI income:        
    Increase in cash surrender value  5,401   4,953  20,696   19,532
    Death benefits  2,966     2,966   807
    Loan service, maintenance and other fees  6,755   3,780  18,920   13,819
    Gains on sales of other assets  3,288   510  9,029   11,467
    Net gains on investment securities  1,177   1,256  3,243   2,019
    Other  3,242   3,463  13,117   13,043
    Total non-interest income  37,027   27,544  122,549   114,503
             
    Non-interest expense:        
    Salaries and employee benefits  66,270   59,946  258,846   226,373
    Net occupancy and equipment  17,234   17,584  72,591   70,058
    Other operating expenses  61,507   41,483  198,124   155,290
    Total non-interest expense  145,011   119,013  529,561   451,721
             
    Income before taxes  218,732   208,511  867,003   721,530
    Provision for income taxes  43,600   45,686  176,164   157,440
    Net income  175,132   162,825  690,839   564,090
    Earnings attributable to noncontrolling interest  (6)  54  (56)  51
    Preferred stock dividends  4,047   4,047  16,187   16,621
    Net income available to common stockholders $171,079  $158,832 $674,596  $547,520
             
    Basic earnings per common share $1.51  $1.35 $5.89  $4.55
             
    Diluted earnings per common share $1.50  $1.34 $5.87  $4.54


     
    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 December 31, 2023:              
    Balances - September 30, 2023 $338,980 $1,131  $1,607,510  $3,154,869  $(198,986) $1,409  $4,904,913 
    Net income          175,132         175,132 
    Earnings attributable to noncontrolling interest          (6)     6    
    Total other comprehensive income             101,612      101,612 
    Preferred stock dividends, $0.28906 per share          (4,047)        (4,047)
    Common stock dividends, $0.37 per share          (42,130)        (42,130)
    Return of capital paid to non-controlling interest                (440)  (440)
    Issuance of 17,018 shares of common stock pursuant to stock-based compensation plans       547            547 
    Stock-based compensation expense       4,389            4,389 
    Forfeitures of 4,578 shares of
    unvested restricted common stock
                        
    Balances - December 31, 2023 $338,980 $1,131  $1,612,446  $3,283,818  $(97,374) $975  $5,139,976 
                   
    Year ended December 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          690,839         690,839 
    Earnings attributable to noncontrolling interest          (56)     56    
    Total other comprehensive income             80,275      80,275 
    Preferred stock dividends, $1.15624 per share          (16,187)        (16,187)
    Common stock dividends, $1.42 per share          (163,913)        (163,913)
    Return of capital paid to non-controlling interest            (440)  (440)
    Issuance of 522,651 shares of common stock pursuant to stock-based
    compensation plans
        5   1,166            1,171 
    Repurchase and cancellation of 4,304,239 shares of common stock under share
    repurchase program, including excise taxes
        (44)  (151,421)           (151,465)
    Repurchase and cancellation of 215,362 shares of common stock withheld for tax pursuant to stock-based compensation
    plans
        (2)  (8,672)         (8,674)
    Stock-based compensation expense       17,432            17,432 
    Forfeitures of 31,306 shares of unvested restricted common stock                    
    Balances - December 31, 2023 $338,980 $1,131  $1,612,446  $3,283,818  $(97,374) $975  $5,139,976 


     
    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 December 31, 2022:              
    Balances - September 30, 2022 $338,980 $1,178  $1,773,562  $2,653,377  $(227,673) $3,120  $4,542,544 
    Net income          162,825         162,825 
    Earnings attributable to noncontrolling interest          54      (54)   
    Total other comprehensive income             50,024      50,024 
    Preferred stock dividends, $0.28906 per share          (4,047)        (4,047)
    Common stock dividends, $0.33 per share          (39,074)        (39,074)
    Return of capital to non-controlling interest                (1,707)  (1,707)
    Issuance of 10,496 shares of common stock pursuant to stock-based compensation plans       241            241 
    Repurchase and cancellation of 574,878 shares of common stock under share repurchase program    (6)  (23,219)           (23,225)
    Repurchase and cancellation of 3,890 shares of common stock withheld for tax pursuant to restricted stock vesting       (174)           (174)
    Stock-based compensation expense       3,531            3,531 
    Forfeitures of 16,405 shares of unvested restricted common stock                    
    Balances - December 31, 2022 $338,980 $1,172  $1,753,941  $2,773,135  $(177,649) $1,359  $4,690,938 
                   
    Year ended December 31, 2022:              
    Balances - December 31, 2021 $338,980 $1,254  $2,093,702  $2,378,466  $23,841  $3,117  $4,839,360 
    Net income          564,090         564,090 
    Earnings attributable to noncontrolling interest          51      (51)   
    Total other comprehensive loss             (201,490)     (201,490)
    Preferred stock dividends, $1.187 per share          (16,621)        (16,621)
    Common stock dividends, $1.26 per share          (152,851)        (152,851)
    Return of capital to non-controlling interest                (1,707)  (1,707)
    Issuance of 305,839 shares of common stock pursuant to stock-based compensation plans    3   2,490            2,493 
    Repurchase and cancellation of 8,373,398 shares of common stock under share
    repurchase program
        (83)  (349,886)           (349,969)
    Repurchase and cancellation of 116,864 shares of common stock withheld for tax pursuant to stock-based compensation
    plans.
        (1)  (5,572)           (5,573)
    Stock-based compensation expense       13,206            13,206 
    Forfeitures of 82,397 shares of unvested restricted common stock    (1)  1             
    Balances - December 31, 2022 $338,980 $1,172  $1,753,941  $2,773,135  $(177,649) $1,359  $4,690,938 


     
    Bank OZK
    Summary of Non-Interest Expense
    Unaudited
     
     Three Months Ended
    December 31,
     Year Ended
    December 31,
      2023  2022  2023  2022
     (Dollars in thousands)
    Salaries and employee benefits$66,270 $59,946 $258,846 $226,373
    Net occupancy and equipment 17,234  17,584  72,591  70,058
    Other operating expenses:       
    Deposit insurance and assessments 15,803  2,710  30,351  9,610
    Software and data processing 10,577  9,512  39,212  35,373
    Professional and outside services 6,233  5,652  21,423  21,581
    Advertising and public relations 5,153  2,987  16,150  8,797
    Telecommunication services 2,251  2,134  8,865  7,986
    Postage and supplies 2,121  1,906  7,981  7,146
    ATM expense 1,957  1,834  7,681  6,331
    Travel and meals 1,938  1,755  7,582  7,661
    Amortization of CRA and tax credit investments 7,618  5,408  27,768  20,293
    Other 7,856  7,585  31,111  30,512
    Total non-interest expense$145,011 $119,013 $529,561 $451,721


     
    Bank OZK
    Summary of Total Loans Outstanding
    Unaudited
     
     December 31,
      2023   2022 
     (Dollars in thousands)
    Real estate:       
    Residential 1-4 family$961,338  3.6% $981,567  4.7%
    Non-farm/non-residential 5,309,239  20.1   4,665,268  22.5 
    Construction/land development 11,653,487  44.0   8,215,056  39.5 
    Agricultural 256,423  1.0   239,689  1.2 
    Multifamily residential 2,064,106  7.8   1,503,398  7.2 
    Total real estate 20,244,593  76.5   15,604,978  75.1 
    Commercial and industrial 1,269,610  4.8   902,321  4.3 
    Consumer 2,965,042  11.2   2,445,851  11.8 
    Other 1,979,830  7.5   1,825,641  8.8 
    Total loans 26,459,075  100.0%  20,778,791  100.0%
    Allowance for loan losses (339,394)    (208,858)  
    Net loans$26,119,681    $20,569,933   


     
    Bank OZK
    Allowance for Credit Losses
    Unaudited
     
     Allowance for Loan Losses Reserve for Losses on Unfunded Loan Commitments Total Allowance for Credit Losses
     (Dollars in thousands)
    Three months ended December 31, 2023:     
    Balances – September 30, 2023$303,358  $158,128 $461,486 
    Net charge-offs (4,090)    (4,090)
    Provision for credit losses 40,126   3,706  43,832 
    Balances – December 31, 2023$339,394  $161,834 $501,228 
          
    Year ended December 31, 2023:     
    Balances – December 31, 2022$208,858  $156,419 $365,277 
    Net charge-offs (29,519)    (29,519)
    Provision for credit losses 160,055   5,415  165,470 
    Balances – December 31, 2023$339,394  $161,834 $501,228 
          
    Three months ended December 31, 2022:     
    Balances – September 30, 2022$200,098  $135,537 $335,635 
    Net charge-offs (2,866)    (2,866)
    Provision for credit losses 11,626   20,882  32,508 
    Balances – December 31, 2022$208,858  $156,419 $365,277 
          
    Year ended December 31, 2022:     
    Balances – December 31, 2021$217,380  $71,609 $288,989 
    Net charge-offs (7,206)    (7,206)
    Provision for credit losses (1,316)  84,810  83,494 
    Balances – December 31, 2022$208,858  $156,419 $365,277 


     
    Bank OZK
    Summary of Deposits – By Account Type
    Unaudited
      December 31,
        2023    2022 
      (Dollars in thousands)
    Non-interest bearing $4,095,874 14.9% $4,658,451 21.7%
    Interest bearing:        
    Transaction (NOW)  4,486,372 16.4   4,097,532 19.1 
    Savings and money market  4,587,924 16.7   5,808,185 27.0 
    Time deposits  14,234,973 52.0   6,935,975 32.2 
    Total deposits $27,405,143 100.0% $21,500,143 100.0%


     
    Bank OZK
    Summary of Deposits – By Customer Type
    Unaudited
     
     December 31,
       2023    2022 
     (Dollars in thousands)
    Non-interest bearing$4,095,874 14.9% $4,658,451 21.7%
    Interest bearing:       
    Consumer and commercial:       
    Consumer – Non-Time 2,792,199 10.2   3,916,078 18.2 
    Consumer – Time 10,216,217 37.3   4,936,061 23.0 
    Commercial – Non-Time 2,439,175 8.9   2,741,007 12.7 
    Commercial – Time 767,566 2.8   516,477 2.4 
    Public funds 3,725,766 13.6   2,103,392 9.8 
    Brokered 2,655,317 9.7   2,050,294 9.5 
    Reciprocal 713,029 2.6   578,383 2.7 
    Total deposits$27,405,143 100.0% $21,500,143 100.0%


     
    Bank OZK
    Selected Consolidated Financial Data
    Unaudited
     
     Three Months Ended
    December 31,
     Year Ended
    December 31,
      2023   2022  %
    Change
      2023   2022  %
    Change
     (Dollars in thousands, except per share amounts)
    Income statement data:           
    Net interest income$370,548  $332,488  11.4% $1,439,485  $1,142,242  26.0%
    Provision for credit losses 43,832   32,508  34.8   165,470   83,494  98.2 
    Non-interest income 37,027   27,544  34.4   122,549   114,503  7.0 
    Non-interest expense 145,011   119,013  21.8   529,561   451,721  17.2 
    Net income 175,132   162,825  7.6   690,839   564,090  22.5 
    Preferred stock dividends 4,047   4,047     16,187   16,621  (2.6)
    Net income available to common stockholders 171,079   158,832  7.7   674,596   547,520  23.2 
    Pre-tax pre-provision net revenue (1) 262,564   241,019  8.9   1,032,473   805,024  28.3 
    Common share and per common share data:           
    Diluted earnings per common share$1.50  $1.34  11.9% $5.87  $4.54  29.3%
    Basic earnings per common share 1.51   1.35  11.9   5.89   4.55  29.5 
    Common stock dividends per share 0.37   0.33  12.1   1.42   1.26  12.7 
    Book value per share 42.42   37.13  14.2   42.42   37.13  14.2 
    Tangible book value per common share (1) 36.58   31.47  16.2   36.58   31.47  16.2 
    Weighted-average diluted shares outstanding (thousands) 113,756   118,201  (3.8)  114,833   120,700  (4.9)
    End of period shares outstanding (thousands) 113,149   117,177  (3.4)  113,149   117,177  (3.4)
    Balance sheet data at period end:           
    Total assets$34,237,457  $27,656,568  23.8% $34,237,457  $27,656,568  23.8%
    Total loans 26,459,075   20,778,791  27.3   26,459,075   20,778,791  27.3 
    Non-purchased loans 26,195,030   20,400,154  28.4   26,195,030   20,400,154  28.4 
    Purchased loans 264,045   378,637  (30.3)  264,045   378,637  (30.3)
    Allowance for loan losses 339,394   208,858  62.5   339,394   208,858  62.5 
    Foreclosed assets 61,720   6,616  832.9   61,720   6,616  832.9 
    Investment securities – AFS 3,244,371   3,491,613  (7.1)  3,244,371   3,491,613  (7.1)
    Goodwill and other intangible assets, net 660,789   663,543  (0.4)  660,789   663,543  (0.4)
    Deposits 27,405,143   21,500,143  27.5   27,405,143   21,500,143  27.5 
    Other borrowings 805,318   606,666  32.7   805,318   606,666  32.7 
    Subordinated notes 347,761   346,947  0.2   347,761   346,947  0.2 
    Subordinated debentures 121,652   121,591  0.1   121,652   121,591  0.1 
    Unfunded balance of closed loans 20,573,029   21,062,733  (2.3)  20,573,029   21,062,733  (2.3)
    Reserve for losses on unfunded loan commitments 161,834   156,419  3.5   161,834   156,419  3.5 
    Preferred stock 338,980   338,980     338,980   338,980   
    Total common stockholders’ equity (1) 4,800,021   4,350,599  10.3   4,800,021   4,350,599  10.3 
    Net unrealized losses on investment securities AFS
    included in stockholders' equity
     (97,374)  (177,649)    (97,374)  (177,649)  
    Loan (including purchased loans) to deposit ratio 96.55%  96.64%    96.55%  96.64%  
    Selected ratios:           
    Return on average assets (2) 2.04%  2.35%    2.20%  2.08%  
    Return on average common stockholders' equity (1) (2) 14.58   14.76     14.93   12.66   
    Return on average tangible common stockholders' equity (1) (2) 16.99   17.48     17.50   14.97   
    Average common equity to total average assets 13.99   15.90     14.74   16.42   
    Net interest margin – FTE (2) 4.82   5.46     5.16   4.82   
    Efficiency ratio 35.33   32.84     33.67   35.75   
    Net charge-offs to average non-purchased loans (2) (3) 0.07   0.09     0.11   0.07   
    Net charge-offs to average total loans (2) 0.06   0.06     0.13   0.04   
    Nonperforming loans to total loans (4) 0.23   0.22     0.23   0.22   
    Nonperforming assets to total assets (4) 0.36   0.19     0.36   0.19   
    Allowance for loan losses to total loans (5) 1.28   1.01     1.28   1.01   
    Allowance for credit losses to total loans and unfunded loan commitments 1.07   0.87     1.07   0.87   
    Other information:           
    Non-accrual loans (4)$60,982  $43,411    $60,982  $43,411   
    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
     December 31, 2023 September 30, 2023 %
    Change
     (Dollars in thousands, except per share amounts)
    Income statement data:     
    Net interest income$370,548  $367,261  0.9%
    Provision for credit losses 43,832   44,036  (0.5)
    Non-interest income 37,027   25,727  43.9 
    Non-interest expense 145,011   128,978  12.4 
    Net income 175,132   173,830  0.7 
    Preferred stock dividends 4,047   4,047   
    Net income available to common stockholders 171,079   169,746  0.8 
    Pre-tax pre-provision net revenue (1) 262,564   264,010  (0.5)
    Common share and per common share data:     
    Diluted earnings per common share$1.50  $1.49  0.7%
    Basic earnings per common share 1.51   1.50  0.7 
    Common stock dividends per share 0.37   0.36  2.8 
    Book value per share 42.42   40.35  5.1 
    Tangible book value per common share (1) 36.58   34.50  6.0 
    Weighted-average diluted shares outstanding (thousands) 113,756   113,770   
    End of period shares outstanding (thousands) 113,149   113,136   
    Balance sheet data at period end:     
    Total assets$34,237,457  $32,767,328  4.5%
    Total loans 26,459,075   25,331,740  4.5 
    Non-purchased loans 26,195,030   25,051,214  4.6 
    Purchased loans 264,045   280,526  (5.9)
    Allowance for loan losses 339,394   303,358  11.9 
    Foreclosed assets 61,720   68,738  (10.2)
    Investment securities – AFS 3,244,371   3,153,817  2.9 
    Goodwill and other intangible assets, net 660,789   660,789   
    Deposits 27,405,143   25,552,856  7.2 
    Other borrowings 805,318   1,430,192  (43.7)
    Subordinated notes 347,761   347,556  0.1 
    Subordinated debentures 121,652   121,652   
    Unfunded balance of closed loans 20,573,029   20,625,371  (0.3)
    Reserve for losses on unfunded loan commitments 161,834   158,128  2.3 
    Preferred stock 338,980   338,980   
    Total common stockholders’ equity (1) 4,800,021   4,564,524  5.2 
    Net unrealized losses on investment securities AFS
    included in stockholders' equity
     (97,374)  (198,986)  
    Loan (including purchased loans) to deposit ratio 96.55%  99.13%  
    Selected ratios:     
    Return on average assets (2) 2.04%  2.13%  
    Return on average common stockholders' equity (1) (2) 14.58   14.81   
    Return on average tangible common stockholders' equity (1) (2) 16.99   17.33   
    Average common equity to total average assets 13.99   14.38   
    Net interest margin – FTE (2) 4.82   5.05   
    Efficiency ratio 35.33   32.60   
    Net charge-offs to average non-purchased loans (2) (3) 0.07   0.17   
    Net charge-offs to average total loans (2) 0.06   0.15   
    Nonperforming loans to total loans (4) 0.23   0.25   
    Nonperforming assets to total assets (4) 0.36   0.40   
    Allowance for loan losses to total loans (5) 1.28   1.20   
    Allowance for credit losses to total loans and unfunded loan commitments 1.07   1.00   
    Other information:     
    Non-accrual loans (4)$60,982  $62,648   
    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
     
     12/31/23 9/30/23 6/30/23 3/31/23 12/31/22
     (Dollars in thousands)
    Earnings summary:         
    Net interest income$370,548  $367,261  $356,824  $344,852  $332,488 
    Federal tax (FTE) adjustment 2,925   2,632   2,602   2,603   2,383 
    Net interest income (FTE) 373,473   369,893   359,426   347,455   334,871 
    Provision for credit losses (43,832)  (44,036)  (41,774)  (35,829)  (32,508)
    Non-interest income 37,027   25,727   31,987   27,809   27,544 
    Non-interest expense (145,011)  (128,978)  (129,355)  (126,217)  (119,013)
    Pre-tax income (FTE) 221,657   222,606   220,284   213,218   210,894 
    FTE adjustment (2,925)  (2,632)  (2,602)  (2,603)  (2,383)
    Provision for income taxes (43,600)  (46,144)  (45,717)  (40,703)  (45,686)
    Noncontrolling interest (6)  (37)  (1)  (12)  54 
    Preferred stock dividend (4,047)  (4,047)  (4,047)  (4,047)  (4,047)
    Net income available to common stockholders$171,079  $169,746  $167,917  $165,853  $158,832 
    Earnings per common share – diluted$1.50  $1.49  $1.47  $1.41  $1.34 
    Pre-tax pre-provision net revenue (1)$262,564  $264,010  $259,456  $246,444  $241,019 
    Selected balance sheet data at period end:         
    Total assets$34,237,457  $32,767,328  $30,761,870  $28,971,170  $27,656,568 
    Non-purchased loans 26,195,030   25,051,214   23,291,785   21,700,941   20,400,154 
    Purchased loans 264,045   280,526   315,661   361,065   378,637 
    Investment securities – AFS 3,244,371   3,153,817   3,262,366   3,422,031   3,491,613 
    Deposits 27,405,143   25,552,856   23,983,397   22,282,983   21,500,143 
    Unfunded balance of closed loans 20,573,029   20,625,371   21,119,761   20,965,040   21,062,733 
    Allowance for credit losses:         
    Balance at beginning of period$461,486  $426,820  $393,767  $365,277  $335,635 
    Net charge-offs (4,090)  (9,370)  (8,721)  (7,339)  (2,866)
    Provision for credit losses 43,832   44,036   41,774   35,829   32,508 
    Balance at end of period$501,228  $461,486  $426,820  $393,767  $365,277 
    Allowance for loan losses$339,394  $303,358  $263,188  $222,025  $208,858 
    Reserve for losses on unfunded loan commitments 161,834   158,128   163,632   171,742   156,419 
    Total allowance for credit losses$501,228  $461,486  $426,820  $393,767  $365,277 
    Selected ratios:         
    Net interest margin – FTE (2) 4.82%  5.05%  5.32%  5.54%  5.46%
    Efficiency ratio 35.33   32.60   33.05   33.63   32.84 
    Net charge-offs to average non-purchased loans (2) (3) 0.07   0.17   0.03   0.15   0.09 
    Net charge-offs to average total loans (2) 0.06   0.15   0.15   0.14   0.06 
    Nonperforming loans to total loans (4) 0.23   0.25   0.15   0.15   0.22 
    Nonperforming assets to total assets (4) 0.36   0.40   0.32   0.34   0.19 
    Allowance for loan losses to total loans (5) 1.28   1.20   1.11   1.01   1.01 
    Allowance for credit losses to total loans
    and unfunded loan commitments
     1.07   1.00   0.95   0.92   0.87 
    Loans past due 30 days or more, including past due
    non-accrual loans, to total loans (4)
     0.20   0.21   0.14   0.15   0.13 

    (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 December 31, Year Ended December 31,
      2023   2022   2023   2022 
     Average Balance Income/ Expense Yield/Rate Average Balance Income/ Expense Yield/Rate Average Balance Income/ Expense Yield/Rate Average Balance Income/ Expense Yield/Rate
     (Dollars in thousands)
    ASSETS                       
    Interest earning assets:                       
    Interest earning deposits and federal funds sold$1,637,395 $21,902 5.31% $692,066 $5,961 3.42% $1,164,595 $58,241 5.00% $940,116 $12,116 1.29%
    Investment securities:                       
    Taxable 2,143,606  9,667 1.79   2,566,011  10,280 1.59   2,299,254  39,429 1.71   2,950,929  41,526 1.41 
    Tax-exempt – FTE 1,097,750  13,506 4.88   974,070  10,786 4.39   1,049,642  49,313 4.70   774,038  28,675 3.70 
    Non-purchased loans – FTE 25,590,389  557,932 8.65   19,728,477  367,136 7.38   23,258,595  1,968,696 8.46   18,744,652  1,159,161 6.18 
    Purchased loans 271,222  5,412 7.92   391,801  7,141 7.23   321,570  23,257 7.23   445,955  31,441 7.05 
    Total earning assets – FTE 30,740,362  608,419 7.85   24,352,425  401,304 6.54   28,093,656  2,138,936 7.61   23,855,690  1,272,919 5.34 
    Non-interest earning assets 2,538,592      2,508,505      2,550,276      2,472,672    
    Total assets$33,278,954     $26,860,930     $30,643,932     $26,328,362    
    LIABILITIES AND STOCKHOLDERS’ EQUITY                    
    Interest bearing liabilities:                       
    Deposits:                       
    Savings and interest bearing transaction$9,004,724 $64,165 2.83% $9,519,104 $26,543 1.11% $9,152,060 $211,498 2.31% $9,588,372 $48,344 0.50%
    Time deposits 13,280,889  154,309 4.61   6,321,731  26,687 1.67   10,543,800  415,552 3.94   5,680,395  46,229 0.81 
    Total interest bearing deposits 22,285,613  218,474 3.89   15,840,835  53,230 1.33   19,695,860  627,050 3.18   15,268,767  94,573 0.62 
    Other borrowings 863,828  11,329 5.20   753,605  8,533 4.49   803,797  41,669 5.18   673,932  13,034 1.93 
    Subordinated notes 347,661  2,631 3.00   346,847  2,631 3.01   347,356  10,439 3.01   346,538  10,439 3.01 
    Subordinated debentures 121,652  2,512 8.19   121,523  2,039 6.66   121,648  9,530 7.83   121,310  5,780 4.76 
    Total interest bearing liabilities 23,618,754  234,946 3.95   17,062,810  66,433 1.54   20,968,661  688,688 3.28   16,410,547  123,826 0.75 
    Non-interest bearing liabilities:                       
    Non-interest bearing deposits 4,150,323      4,751,644      4,315,200      4,873,842    
    Other non-interest bearing liabilities 513,326      435,108      502,732      378,471    
    Total liabilities 28,282,403      22,249,562      25,786,593      21,662,860    
    Total stockholders’ equity before noncontrolling interest 4,995,217      4,608,570      4,855,976      4,662,467    
    Noncontrolling interest 1,334      2,798      1,363      3,035    
    Total liabilities and stockholders’ equity$33,278,954     $26,860,930     $30,643,932     $26,328,362    
    Net interest income – FTE  $373,473     $334,871     $1,450,248     $1,149,093  
    Net interest margin – FTE    4.82%     5.46%     5.16%     4.82%
    Core spread (1)    4.76%     6.05%     5.28%     5.56%

    (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    
     December 31, September 30, Year Ended December 31,
      2023   2022   2023   2023   2022 
     (Dollars in thousands)
    Net income available to common stockholders$171,079  $158,832  $169,746  $674,596  $547,520 
    Average stockholders’ equity before noncontrolling interest$4,995,217  $4,608,570  $4,885,620  $4,855,976  $4,662,467 
    Less average preferred stock (338,980)  (338,980)  (338,980)  (338,980)  (338,980)
    Total average common stockholders’ equity 4,656,237   4,269,590   4,546,640   4,516,996   4,323,487 
    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    (3,421)     (821)  (5,443)
    Total average intangibles (660,789)  (664,210)  (660,789)  (661,610)  (666,232)
    Average tangible common stockholders’ equity$3,995,448  $3,605,380  $3,885,851  $3,855,386  $3,657,255 
    Return on average common stockholders’ equity(1) 14.58%  14.76%  14.81%  14.93%  12.66%
    Return on average tangible common stockholders’ equity(1) 16.99%  17.48%  17.33%  17.50%  14.97%

    (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
     
     December 31, September 30,
      2023   2022   2023 
     (In thousands, except per share amounts)
    Total stockholders’ equity before noncontrolling interest$5,139,001  $4,689,579  $4,903,504 
    Less preferred stock (338,980)  (338,980)  (338,980)
    Total common stockholders’ equity$4,800,021  $4,350,599  $4,564,524 
    Less intangible assets:     
    Goodwill (660,789)  (660,789)  (660,789)
    Core deposit and other intangible assets, net of accumulated amortization    (2,754)   
    Total intangibles (660,789)  (663,543)  (660,789)
    Total tangible common stockholders’ equity$4,139,232  $3,687,056  $3,903,735 
    Shares of common stock outstanding 113,149   117,177   113,136 
    Book value per common share$42.42  $37.13  $40.35 
    Tangible book value per common share$36.58  $31.47  $34.50 


     
    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
     
     December 31,
      2023   2022 
     (Dollars in thousands)
    Total stockholders’ equity before noncontrolling interest$5,139,001  $4,689,579 
    Less preferred stock (338,980)  (338,980)
    Total common stockholders’ equity$4,800,021  $4,350,599 
    Less intangible assets:   
    Goodwill (660,789)  (660,789)
    Core deposit and other intangible assets, net of accumulated amortization    (2,754)
    Total intangibles (660,789)  (663,543)
    Total tangible common stockholders’ equity 4,139,232   3,687,056 
    Total assets$34,237,457  $27,656,568 
    Less intangible assets:   
    Goodwill$(660,789) $(660,789)
    Core deposit and other intangible assets, net of accumulated amortization    (2,754)
    Total intangibles (660,789)  (663,543)
    Total tangible assets$33,576,668  $26,993,025 
    Ratio of total common stockholders’ equity to total assets 14.02%  15.73%
    Ratio of total tangible common stockholders’ equity to total tangible assets 12.33%  13.66%


     
    Calculation of Pre-Tax Pre-Provision Net Revenue
    Unaudited
     
     Three Months Ended Year Ended
     Dec 31, Sept 30, June 30, March 31, Dec 31, December 31,
      2023  2023  2023  2023  2022   2023  2022 
     (Dollars in thousands)    
    Net income available to common stockholders$171,079 $169,746 $167,917 $165,853 $158,832  $674,596 $547,520 
    Preferred stock dividends 4,047  4,047  4,047  4,047  4,047   16,187  16,621 
    Earnings attributable to
    noncontrolling interest
     6  37  1  12  (54)  56  (51)
    Provision for income taxes 43,600  46,144  45,717  40,703  45,686   176,164  157,440 
    Provision for credit losses 43,832  44,036  41,774  35,829  32,508   165,470  83,494 
    Pre-tax pre-provision net revenue$262,564 $264,010 $259,456 $246,444 $241,019  $1,032,473 $805,024 


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

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