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Bank OZK Announces Record Second Quarter 2021 Earnings
Источник: Nasdaq GlobeNewswire / 22 июл 2021 16:01:01 America/New_York
LITTLE ROCK, Ark., July 22, 2021 (GLOBE NEWSWIRE) -- Bank OZK (the “Bank”) (Nasdaq: OZK) today announced that net income for the second quarter of 2021 was a record $150.5 million, a 199.5% increase from $50.3 million for the second quarter of 2020. Diluted earnings per common share for the second quarter of 2021 were a record $1.16, a 197.4% increase from $0.39 for the second quarter of 2020.
For the six months ended June 30, 2021, net income was $299.0 million, a 381.2% increase from $62.1 million for the first six months of 2020. Diluted earnings per common share for the first six months of 2021 were $2.30, a 379.2% increase from $0.48 for the first six months of 2020.
As a result of improving economic conditions and prospects for improvement in the U.S. economy, management recorded negative provision for credit losses of $30.9 million during the second quarter and $62.5 million during the first six months of 2021, reducing the Bank’s total allowance for credit losses (“ACL”) from $377.3 million at December 31, 2020 to $307.6 million at June 30, 2021. The Bank’s provision for credit losses was $72.0 million during the second quarter and $189.7 million during the first six months of 2020, reflecting significant economic uncertainty at that time.
The Bank’s results for the first six months of 2021 included pretax gains of $4.4 million from the sale of its South Carolina branches and $1.4 million of tax-exempt bank-owned life insurance (“BOLI”) death benefits, both of which were recognized during the first quarter of 2021. The Bank had no gains from branch sales and had $0.6 million of tax-exempt BOLI death benefits during the first six months of 2020.
Pre-tax pre-provision net revenue (“PPNR”) was $164.8 million for the second quarter of 2021, a 20.1% increase from $137.2 million for the second quarter of 2020. For the six months ended June 30, 2021, PPNR was $325.5 million, a 20.0% increase from $271.3 million for the first six months of 2020. The calculation of PPNR and the reconciliation to generally accepted accounting principles (“GAAP”) are included in the schedules accompanying this release.
The Bank’s annualized returns on average assets, average common stockholders’ equity and average tangible common stockholders’ equity for the second quarter of 2021 were 2.24%, 13.65% and 16.10%, respectively, compared to 0.78%, 4.92% and 5.89%, respectively, for the second quarter of 2020. The Bank’s annualized returns on average assets, average common stockholder’s equity and average tangible common stockholders’ equity for the first six months of 2021 were 2.23%, 13.81% and 16.33%, respectively, compared to 0.50%, 3.04%, and 3.64%, respectively, for the first six months of 2020. The calculation of the Bank’s return on average tangible common stockholders’ equity and the reconciliation to GAAP are included in the schedules accompanying this release.
George Gleason, Chairman and Chief Executive Officer stated, “We are pleased to report record results for the quarter just ended. Our strong capital and liquidity, our disciplined credit culture and our exceptional team have us well positioned for the future.”
KEY BALANCE SHEET METRICS
Total loans were $18.27 billion at June 30, 2021, a 5.4% decrease from $19.31 billion at June 30, 2020. Non-purchased loans were $17.61 billion at June 30, 2021, a 3.5% decrease from $18.25 billion at June 30, 2020. Purchased loans, which consist of loans acquired in previous acquisitions, were $0.66 billion at June 30, 2021, a 38.0% decrease from $1.06 billion at June 30, 2020.
Deposits were $20.71 billion at June 30, 2021, a 0.1% decrease from $20.72 billion at June 30, 2020. Total assets were $26.61 billion at June 30, 2021, a 0.9% increase from $26.38 billion at June 30, 2020, but a 2.5% decrease from $27.28 billion at March 31, 2021.
Common stockholders’ equity was $4.50 billion at June 30, 2021, a 9.5% increase from $4.11 billion at June 30, 2020. Tangible common stockholders’ equity was $3.83 billion at June 30, 2021, an 11.6% increase from $3.43 billion at June 30, 2020. Book value per common share was $34.70 at June 30, 2021, a 9.2% increase from $31.78 at June 30, 2020. Tangible book value per common share was $29.52 at June 30, 2021, an 11.3% increase from $26.53 at June 30, 2020. The calculations of the Bank’s tangible common stockholders’ equity and tangible book value per common share and the reconciliations to GAAP are included in the schedules accompanying this release.
The Bank’s ratio of total common stockholders’ equity to total assets was 16.92% at June 30, 2021 compared to 15.58% at June 30, 2020. Its ratio of total tangible common stockholders’ equity to total tangible assets was 14.77% at June 30, 2021 compared to 13.35% at June 30, 2020. The calculation of the Bank’s ratio of total tangible common stockholders’ equity to total tangible assets and the reconciliation to GAAP are included in the schedules accompanying this release.
AUTHORIZATION OF STOCK REPURCHASE PROGRAM
In July 2021, the Bank’s Board of Directors authorized a stock repurchase program pursuant to which the Bank may repurchase up to $300 million of its outstanding common stock. The Bank has received regulatory approval of the repurchase program, and the timing and amount of repurchases will be determined by management based on a variety of factors such as the Bank’s capital position, liquidity, financial performance and alternative uses of capital, stock price, regulatory requirements and general market and economic conditions. The repurchase program will expire on July 1, 2022, unless extended or shortened by the Board of Directors, and may be suspended by the Bank at any time.
SUBORDINATED DEBT REDEMPTION
On July 1, 2021, the Bank redeemed all of its $225 million of fixed-to-floating rate subordinated notes at a redemption price equal to 100% of the principal amount of the subordinated notes plus accrued and unpaid interest. As of June 30, 2021, the Bank’s subordinated debt had a carrying value of $224.2 million and remaining unamortized debt issuance cost of $0.8 million.
MANAGEMENT’S COMMENTS, CONFERENCE CALL, TRANSCRIPT AND FILINGS
In connection with this release, the Bank released management’s comments on its quarterly results, which are available at http://ir.ozk.com. This release should be read in conjunction with management’s comments on the quarterly results.
Management will conduct a conference call to take questions on these quarterly results and management’s comments at 10:00 a.m. CT (11:00 a.m. ET) on July 23, 2021. Interested parties may listen to this call by dialing 1-844-818-5110 (U.S. and Canada) or 210-229-8841 (internationally) and asking for the Bank OZK conference call. A recorded playback of the call will be available for one week following the call at 1-855-859-2056 (U.S. and Canada) or 404-537-3406 (internationally). The conference ID for this playback is 3462545. The call will be available live or in a recorded version on the Bank’s Investor Relations website at ir.ozk.com under “Company News/Webcasts.” The Bank will also provide a transcript of the conference call on its Investor Relations website.
The Bank files annual, quarterly and current reports, proxy materials and other information required by the Securities Exchange Act of 1934 with the Federal Deposit Insurance Corporation (“FDIC”), copies of which are available electronically at the FDIC’s website at https://efr.fdic.gov/fcxweb/efr/index.html and are also available on the Bank’s Investor Relations website at http://ir.ozk.com. To receive automated email alerts for these materials, please visit http://ir.ozk.com/EmailNotification to sign up.
NON-GAAP FINANCIAL MEASURES
This release contains certain non-GAAP financial measures. The Bank uses these non-GAAP financial measures, specifically return on average tangible common stockholders’ equity, tangible book value per common share, total tangible common stockholders’ equity, the ratio of total tangible common stockholders’ equity to total tangible assets and PPNR, to assess the strength of its capital, its ability to generate earnings on tangible capital invested by its shareholders and trends in its net revenue. These measures typically adjust GAAP financial measures to exclude intangible assets or provision for credit losses. Management believes presentation of these non-GAAP financial measures provides useful supplemental information which contributes to a proper understanding of the financial results and capital levels of the Bank. These non-GAAP disclosures should not be viewed as a substitute for financial results determined in accordance with GAAP, and they are not necessarily comparable to non-GAAP performance measures that may be presented by other banks. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are included in the tables at the end of this release under the caption “Reconciliation of Non-GAAP Financial Measures.”
FORWARD-LOOKING STATEMENTS
This release and other communications by the Bank include certain “forward-looking statements” regarding the Bank’s plans, expectations, thoughts, beliefs, estimates, goals and outlook for the future that are intended to be covered by the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on management’s expectations as well as certain assumptions and estimates made by, and information available to, management at the time. Those statements are not guarantees of future results or performance and are subject to certain known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those expressed in, or implied by, such forward-looking statements. These risks, uncertainties and other factors include, but are not limited to: potential delays or other problems implementing the Bank’s growth, expansion and acquisition strategies, including delays in identifying satisfactory sites, hiring or retaining qualified personnel, obtaining regulatory or other approvals, obtaining permits and designing, constructing and opening new offices or relocating, selling or closing existing offices; the ability to enter into and/or close additional acquisitions; the availability of and access to capital; possible downgrades in the Bank’s credit ratings or outlook which could increase the costs of or decrease the availability of funding from capital markets; the ability to attract new or retain existing or acquired deposits or to retain or grow loans, including growth from unfunded closed loans; the ability to generate future revenue growth or to control future growth in non-interest expense; interest rate fluctuations, including changes in the yield curve between short-term and long-term interest rates or changes in the relative relationships of various interest rate indices; the potential impact of the phase-out of the London Interbank Offered Rate (“LIBOR”) or other changes involving LIBOR; competitive factors and pricing pressures, including their effect on the Bank’s net interest margin or core spread; general economic, unemployment, credit market and real estate market conditions, and the effect of such conditions on the creditworthiness of borrowers, collateral values, the value of investment securities and asset recovery values; changes in legal, financial and/or regulatory requirements; recently enacted and potential legislation and regulatory actions and the costs and expenses to comply with new and/or existing legislation and regulatory actions, including those in response to the COVID-19 pandemic such as the Coronavirus Aid, Relief and Economic Security Act, the Consolidated Appropriations Act of 2021, the American Rescue Plan Act of 2021, and any similar or related laws, rules and regulations; changes in U.S. government monetary and fiscal policy; FDIC special assessments or changes to regular assessments; the ability to keep pace with technological changes, including changes regarding maintaining cybersecurity; the impact of failure in, or breach of, the Bank’s operational or security systems or infrastructure, or those of third parties with whom it does business, including as a result of cyber-attacks or an increase in the incidence or severity of fraud, illegal payments, security breaches or other illegal acts impacting the Bank or its customers; natural disasters or acts of war or terrorism; the adverse effects of the COVID-19 pandemic, including the duration of the pandemic and actions taken to contain or treat COVID-19, on the Bank, the Bank’s customers, the Bank’s staff, the global economy and financial markets; national, international or political instability; impairment of the Bank’s goodwill or other intangible assets; adoption of new accounting standards, or changes in existing standards; and adverse results (including costs, fines, reputational harm and/or other negative effects) from current or future litigation, regulatory examinations or other legal and/or regulatory actions or rulings as well as other factors identified in this press release or as detailed from time to time in the other public reports the Bank files with the FDIC, including those factors described in the disclosures under the headings “Forward-Looking Information” and “Item 1A. Risk Factors” in the Bank’s most recent Annual Report on Form 10-K for the year ended December 31, 2020 and its quarterly reports on Form 10-Q. Should one or more of the foregoing risks materialize, or should underlying assumptions prove incorrect, actual results or outcomes may vary materially from those projected in, or implied by, such forward-looking statements. The Bank disclaims any obligation to update or revise any forward-looking statements based on the occurrence of future events, the receipt of new information or otherwise.
GENERAL INFORMATION
Bank OZK (Nasdaq: OZK) is a regional bank providing innovative financial solutions delivered by expert bankers with a relentless pursuit of excellence. Headquartered in Little Rock, Arkansas, Bank OZK conducts operations through 250 branches, loan production offices and other offices in Arkansas, Georgia, Florida, North Carolina, Texas, California, New York and Mississippi. Bank OZK can be found at www.ozk.com and on Facebook, Twitter and LinkedIn or contacted at (501) 978-2265 or P. O. Box 8811, Little Rock, Arkansas 72231-8811.
Bank OZK
Consolidated Balance Sheets
UnauditedJune 30, December 31, 2021 2020 (Dollars in thousands, except per share amounts) ASSETS Cash and cash equivalents $ 1,424,249 $ 2,393,662 Investment securities ― available for sale ("AFS") 4,693,396 3,405,351 Federal Home Loan Bank of Dallas and other bankers' bank stocks 40,609 38,486 Non-purchased loans 17,611,848 18,401,495 Purchased loans 659,822 807,673 Allowance for loan losses (248,753 ) (295,824 ) Net loans 18,022,917 18,913,344 Premises and equipment, net 729,187 738,842 Foreclosed assets 7,542 11,085 Accrued interest receivable 93,693 88,077 Bank owned life insurance (“BOLI”) 766,362 758,071 Goodwill and other intangible assets, net 672,125 675,458 Other, net 155,858 140,220 Total assets $ 26,605,938 $ 27,162,596 LIABILITIES AND STOCKHOLDERS’ EQUITY Deposits: Demand non-interest bearing $ 4,510,678 $ 3,996,546 Savings and interest bearing transaction 8,835,674 8,160,982 Time 7,360,425 9,292,828 Total deposits 20,706,777 21,450,356 Repurchase agreements with customers 8,449 8,013 Other borrowings 750,228 750,928 Subordinated notes 224,236 224,047 Subordinated debentures 120,752 120,475 Reserve for losses on unfunded loan commitments 58,811 81,481 Accrued interest payable and other liabilities 231,892 251,940 Total liabilities 22,101,145 22,887,240 Commitments and contingencies Stockholders’ equity: Preferred stock; $0.01 par value; 100,000,000 shares authorized; no shares issued or outstanding at June 30, 2021 or December 31, 2020 — — Common stock; $0.01 par value; 300,000,000 shares authorized; 129,720,140 and 129,350,448 shares issued and outstanding at June 30, 2021 and December 31, 2020, respectively 1,297 1,294 Additional paid-in capital 2,277,138 2,265,850 Retained earnings 2,173,114 1,946,875 Accumulated other comprehensive income 50,127 58,252 Total stockholders’ equity before noncontrolling interest 4,501,676 4,272,271 Noncontrolling interest 3,117 3,085 Total stockholders’ equity 4,504,793 4,275,356 Total liabilities and stockholders’ equity $ 26,605,938 $ 27,162,596 Bank OZK
Consolidated Statements of Income
UnauditedThree Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (Dollars in thousands, except per share amounts) Interest income: Non-purchased loans $ 238,554 $ 232,816 $ 478,381 $ 464,669 Purchased loans 11,699 17,087 23,635 38,474 Investment securities: Taxable 9,467 11,055 17,550 21,814 Tax-exempt 3,883 5,846 7,563 9,443 Deposits with banks and federal funds sold 496 330 1,033 4,706 Total interest income 264,099 267,134 528,162 539,106 Interest expense: Deposits 18,231 45,251 42,582 102,933 Repurchase agreements with customers 6 6 10 13 Other borrowings 996 963 1,982 1,013 Subordinated notes 3,181 3,172 6,326 6,344 Subordinated debentures 939 1,149 1,881 2,436 Total interest expense 23,353 50,541 52,781 112,739 Net interest income 240,746 216,593 475,381 426,367 Provision for credit losses (30,932 ) 72,026 (62,491 ) 189,689 Net interest income after provision for credit losses 271,678 144,567 537,872 236,678 Non-interest income: Service charges on deposit accounts 10,311 8,281 19,976 18,290 Trust income 1,911 1,759 4,118 3,698 BOLI income: Increase in cash surrender value 4,919 5,057 9,799 10,124 Death benefits — — 1,409 608 Loan service, maintenance and other fees 3,953 3,394 7,504 7,110 Gains on sales of other assets 2,341 621 8,169 783 Net gains on investment securities — — — 2,223 Other 4,307 2,479 8,884 6,435 Total non-interest income 27,742 21,591 59,859 49,271 Non-interest expense: Salaries and employee benefits 52,119 48,410 105,764 99,883 Net occupancy and equipment 16,168 15,756 32,636 31,086 Other operating expenses 35,424 36,787 71,371 73,409 Total non-interest expense 103,711 100,953 209,771 204,378 Income before taxes 195,709 65,205 387,960 81,571 Provision for income taxes 45,161 14,948 88,978 19,456 Net income 150,548 50,257 298,982 62,115 Earnings attributable to noncontrolling interest (13 ) 9 (32 ) 17 Net income available to common stockholders $ 150,535 $ 50,266 $ 298,950 $ 62,132 Basic earnings per common share $ 1.16 $ 0.39 $ 2.31 $ 0.48 Diluted earnings per common share $ 1.16 $ 0.39 $ 2.30 $ 0.48 Bank OZK
Consolidated Statements of Stockholders’ Equity
UnauditedCommon
StockAdditional
Paid-In
CapitalRetained
EarningsAccumulated
Other
Comprehensive
IncomeNon-
Controlling
InterestTotal (Dollars in thousands, except per share amounts) Three months ended June 30, 2021: Balances – March 31, 2021 $ 1,297 $ 2,272,046 $ 2,059,398 $ 50,464 $ 3,104 $ 4,386,309 Net income — — 150,548 — — 150,548 Earnings attributable to noncontrolling interest — — (13 ) — 13 — Total other comprehensive loss — — — (337 ) — (337 ) Common stock dividends, $0.28 per share — — (36,819 ) — — (36,819 ) Issuance of 14,300 shares of common stock for exercise of stock options — 515 — — — 515 Issuance of 20,328 shares of unvested restricted common stock — — — — — — Repurchase and cancellation of 153 shares of common stock — (6 ) — — — (6 ) Stock-based compensation expense — 4,583 — — — 4,583 Forfeitures of 33,241 shares of unvested restricted common stock — — — — — — Balances – June 30, 2021 $ 1,297 $ 2,277,138 $ 2,173,114 $ 50,127 $ 3,117 $ 4,504,793 Six months ended June 30, 2021: Balances – December 31, 2020 $ 1,294 $ 2,265,850 $ 1,946,875 $ 58,252 $ 3,085 $ 4,275,356 Net income — — 298,982 — — 298,982 Earnings attributable to noncontrolling interest — — (32 ) — 32 — Total other comprehensive loss — — — (8,125 ) — (8,125 ) Common stock dividends, $0.5575 per share — — (72,711 ) — — (72,711 ) Issuance of 142,400 shares of common stock for exercise of stock options 1 5,007 — — — 5,008 Issuance of 332,831 shares of unvested restricted common stock 3 (3 ) — — — — Repurchase and cancellation of 55,893 shares of common stock (1 ) (1,976 ) — — — (1,977 ) Stock-based compensation expense — 8,260 — — — 8,260 Forfeitures of 49,646 shares of unvested restricted common stock — — — — — — Balances – June 30, 2021 $ 1,297 $ 2,277,138 $ 2,173,114 $ 50,127 $ 3,117 $ 4,504,793 Bank OZK
Consolidated Statements of Stockholders’ Equity
UnauditedCommon
StockAdditional
Paid-In
CapitalRetained
EarningsAccumulated
Other
Comprehensive
Income (Loss)Non-
Controlling
InterestTotal (Dollars in thousands, except per share amounts) Three months ended June 30, 2020: Balances – March 31, 2020 $ 1,293 $ 2,253,991 $ 1,772,978 $ 54,888 $ 3,109 $ 4,086,259 Net income — — 50,257 — — 50,257 Earnings attributable to noncontrolling interest — — 9 — (9 ) — Total other comprehensive income — — — 8,289 — 8,289 Common stock dividends, $0.27 per share — — (34,915 ) — — (34,915 ) Issuance of 46,676 shares of unvested restricted common stock — — — — — — Stock-based compensation expense — 3,876 — — — 3,876 Forfeitures of 20,810 shares of unvested restricted common stock — — — — — — Balances – June 30, 2020 $ 1,293 $ 2,257,867 $ 1,788,329 $ 63,177 $ 3,100 $ 4,113,766 Six months ended June 30, 2020: Balances – December 31, 2019 $ 1,289 $ 2,251,824 $ 1,869,983 $ 27,255 $ 3,117 $ 4,153,468 Cumulative effect of change in accounting principle — — (75,344 ) — — (75,344 ) Balances – January 1, 2020 1,289 2,251,824 1,794,639 27,255 3,117 4,078,124 Net income — — 62,115 — — 62,115 Earnings attributable to noncontrolling interest — — 17 — (17 ) — Total other comprehensive income — — — 35,922 — 35,922 Common stock dividends, $0.53 per share — — (68,442 ) — — (68,442 ) Issuance of 4,300 shares of common stock for exercise of stock options — 45 — — — 45 Issuance of 493,761 shares of unvested restricted common stock 5 (5 ) — — — — Repurchase and cancellation of 61,873 shares of common stock (1 ) (1,852 ) — — — (1,853 ) Stock-based compensation expense — 7,855 — — — 7,855 Forfeitures of 36,911 shares of unvested restricted common stock — — — — — — Balances – June 30, 2020 $ 1,293 $ 2,257,867 $ 1,788,329 $ 63,177 $ 3,100 $ 4,113,766 Bank OZK
Summary of Non-Interest Expense
UnauditedThree Months Ended
June 30,Six Months Ended
June 30,2021 2020 2021 2020 (Dollars in thousands) Salaries and employee benefits $ 52,119 $ 48,410 $ 105,764 $ 99,883 Net occupancy and equipment 16,168 15,756 32,636 31,086 Other operating expenses: Professional and outside services 7,724 7,629 14,050 14,393 Software and data processing 6,006 5,145 11,798 10,119 Deposit insurance and assessments 2,885 4,585 6,405 8,005 Telecommunication services 2,165 2,334 4,397 4,511 Postage and supplies 1,544 1,892 3,188 3,945 ATM expense 1,486 1,002 2,769 2,162 Travel and meals 1,419 710 2,194 2,812 Writedowns of foreclosed and other assets 123 720 1,486 1,599 Loan collection and repossession expense 540 857 1,050 1,551 Advertising and public relations 593 1,704 902 3,407 Amortization of intangibles 1,602 2,582 3,332 5,377 Amortization of CRA and tax credit investments 3,227 3,107 7,352 5,847 Other 6,110 4,520 12,448 9,681 Total non-interest expense $ 103,711 $ 100,953 $ 209,771 $ 204,378 Bank OZK
Summary of Total Loans Outstanding
UnauditedJune 30, 2021 December 31, 2020 (Dollars in thousands) Real estate: Residential 1-4 family $ 894,404 4.9 % $ 911,115 4.7 % Non-farm/non-residential 4,415,246 24.2 4,213,636 21.9 Construction/land development 7,289,254 39.9 8,046,978 41.9 Agricultural 226,345 1.2 204,868 1.1 Multifamily residential 1,065,123 5.8 856,297 4.5 Total real estate 13,890,372 76.0 14,232,894 74.1 Commercial and industrial 651,019 3.6 842,206 4.4 Consumer 2,220,660 12.2 2,393,964 12.5 Other 1,509,619 8.2 1,740,104 9.0 Total loans 18,271,670 100.0 % 19,209,168 100.0 % Allowance for loan losses (248,753 ) (295,824 ) Net loans $ 18,022,917 $ 18,913,344 Bank OZK
Allowance for Credit Losses
UnauditedAllowance for
Loan LossesReserve for
Losses on
Unfunded
Loan
CommitmentsTotal Allowance
for Credit
Losses(Dollars in thousands) Three months ended June 30, 2021: Balances – March 31, 2021 $ 268,077 $ 74,230 $ 342,307 Net charge-offs (3,811 ) — (3,811 ) Provision for credit losses (15,513 ) (15,419 ) (30,932 ) Balances – June 30, 2021 $ 248,753 $ 58,811 $ 307,564 Six months ended June 30, 2021: Balances – December 31, 2020 $ 295,824 $ 81,481 $ 377,305 Net charge-offs (7,250 ) — (7,250 ) Provision for credit losses (39,821 ) (22,670 ) (62,491 ) Balances – June 30, 2021 $ 248,753 $ 58,811 $ 307,564 Three months ended June 30, 2020: Balances – March 31, 2020 $ 238,737 $ 77,672 $ 316,409 Net charge-offs (13,941 ) — (13,941 ) Provision for credit losses 81,400 (9,374 ) 72,026 Balances – June 30, 2020 $ 306,196 $ 68,298 $ 374,494 Six months ended June 30, 2020: Balances – December 31, 2019 $ 108,525 $ — $ 108,525 Adoption of CECL methodology 39,588 54,924 94,512 Balances – January 1, 2020 148,113 54,924 203,037 Net charge-offs (18,232 ) — (18,232 ) Provision for credit losses 176,315 13,374 189,689 Balances – June 30, 2020 $ 306,196 $ 68,298 $ 374,494 Bank OZK
Summary of Deposits – By Account Type
UnauditedJune 30, 2021 December 31, 2020 (Dollars in thousands) Non-interest bearing $ 4,510,678 21.8 % $ 3,996,546 18.6 % Interest bearing: Transaction (NOW) 3,252,394 15.7 3,124,007 14.6 Savings and money market 5,583,280 27.0 5,036,975 23.5 Time deposits less than $100 2,173,883 10.5 3,075,845 14.3 Time deposits of $100 or more 5,186,542 25.0 6,216,983 29.0 Total deposits $ 20,706,777 100.0 % $ 21,450,356 100.0 % Summary of Deposits – By Customer Type
UnauditedJune 30, 2021 December 31, 2020 (Dollars in thousands) Consumer $ 10,679,525 51.6 % $ 11,165,603 52.1 % Commercial 6,566,031 31.7 6,056,536 28.2 Public Funds 2,082,988 10.1 2,111,971 9.8 Brokered 914,907 4.4 1,600,116 7.5 Reciprocal 463,326 2.2 516,130 2.4 Total deposits $ 20,706,777 100.0 % $ 21,450,356 100.0 % Bank OZK
Selected Consolidated Financial Data
UnauditedThree Months Ended
June 30,Six Months Ended
June 30,2021 2020 % Change 2021 2020 % Change (Dollars in thousands, except per share amounts) Income statement data: Net interest income $ 240,746 $ 216,593 11.2 % $ 475,381 $ 426,367 11.5 % Provision for credit losses (30,932 ) 72,026 (142.9 ) (62,491 ) 189,689 (132.9 ) Non-interest income 27,742 21,591 28.5 59,859 49,271 21.5 Non-interest expense 103,711 100,953 2.7 209,771 204,378 2.6 Net income available to common stockholders 150,535 50,266 199.5 298,950 62,132 381.2 Pre-tax pre-provision net revenue(1) 164,777 137,231 20.1 325,469 271,260 20.0 Common share and per common share data: Net income per share − diluted $ 1.16 $ 0.39 197.4 % $ 2.30 $ 0.48 379.2 % Net income per share − basic 1.16 0.39 197.4 2.31 0.48 381.3 Dividends per share 0.28 0.27 3.7 0.5575 0.53 5.2 Book value per share 34.70 31.78 9.2 34.70 31.78 9.2 Tangible book value per share(1) 29.52 26.53 11.3 29.52 26.53 11.3 Weighted-average diluted shares outstanding (thousands) 130,255 129,399 0.7 130,109 129,349 0.6 End of period shares outstanding (thousands) 129,720 129,350 0.3 129,720 129,350 0.3 Balance sheet data at period end: Total assets $ 26,605,938 $ 26,380,409 0.9 % $ 26,605,938 $ 26,380,409 0.9 % Total loans 18,271,670 19,311,078 (5.4 ) 18,271,670 19,311,078 (5.4 ) Non-purchased loans 17,611,848 18,247,431 (3.5 ) 17,611,848 18,247,431 (3.5 ) Purchased loans 659,822 1,063,647 (38.0 ) 659,822 1,063,647 (38.0 ) Allowance for loan losses 248,753 306,196 (18.8 ) 248,753 306,196 (18.8 ) Foreclosed assets 7,542 18,328 (58.8 ) 7,542 18,328 (58.8 ) Investment securities − AFS 4,693,396 3,299,944 42.2 4,693,396 3,299,944 42.2 Goodwill and other intangible assets, net 672,125 679,166 (1.0 ) 672,125 679,166 (1.0 ) Deposits 20,706,777 20,723,598 (0.1 ) 20,706,777 20,723,598 (0.1 ) Other borrowings 750,228 903,696 (17.0 ) 750,228 903,696 (17.0 ) Subordinated notes 224,236 223,854 0.2 224,236 223,854 0.2 Subordinated debentures 120,752 120,194 0.5 120,752 120,194 0.5 Unfunded balance of closed loans 11,709,818 11,411,441 2.6 11,709,818 11,411,441 2.6 Reserve for losses on unfunded loan commitments 58,811 68,298 (13.9 ) 58,811 68,298 (13.9 ) Total common stockholders’ equity 4,501,676 4,110,666 9.5 4,501,676 4,110,666 9.5 Net unrealized gains on investment securities AFS included in common stockholders' equity 50,127 63,177 50,127 63,177 Loan (including purchased loans) to deposit ratio 88.24 % 93.18 % 88.24 % 93.18 % Selected ratios: Return on average assets(2) 2.24 % 0.78 % 2.23 % 0.50 % Return on average common stockholders’ equity(2) 13.65 4.92 13.81 3.04 Return on average tangible common stockholders’ equity(1) (2) 16.10 5.89 16.33 3.64 Average common equity to total average assets 16.42 15.93 16.17 16.59 Net interest margin – FTE(2) 3.95 3.74 3.91 3.84 Efficiency ratio 38.43 42.07 39.00 42.71 Net charge-offs to average non-purchased loans(2) (3) 0.09 0.05 0.08 0.06 Net charge-offs to average total loans(2) 0.08 0.29 0.08 0.20 Nonperforming loans to total loans(4) 0.22 0.18 0.22 0.18 Nonperforming assets to total assets(4) 0.18 0.19 0.18 0.19 Allowance for loan losses to total loans(5) 1.36 1.59 1.36 1.59 Other information: Non-accrual loans(4) $ 38,195 $ 31,083 $ 38,195 $ 31,083 Accruing loans − 90 days past due(4) — — — — Troubled and restructured non-purchased loans − accruing(4) 1,365 934 1,365 934 (1) Calculations of pre-tax pre-provision net revenue, tangible book value per common share and return on average tangible common stockholders’ equity and the reconciliations to GAAP are included in the schedules accompanying this release.
(2) Ratios for interim periods annualized based on actual days.
(3) Excludes purchased loans and net charge-offs related to such loans.
(4) Excludes purchased loans, except for their inclusion in total assets.
(5) Excludes reserve for losses on unfunded loan commitments.Selected Consolidated Financial Data (continued)
UnauditedThree Months Ended June 30, March 31, 2021 2021 % Change (Dollars in thousands, except per share amounts) Income statement data: Net interest income $ 240,746 $ 234,636 2.6 % Provision for credit losses (30,932 ) (31,559 ) (2.0 ) Non-interest income 27,742 32,117 (13.6 ) Non-interest expense 103,711 106,059 (2.2 ) Net income available to common stockholders 150,535 148,416 1.4 Pre-tax pre-provision net revenue(1) 164,777 160,694 2.5 Common share and per common share data: Net income per share − diluted $ 1.16 $ 1.14 1.8 % Net income per share − basic 1.16 1.15 0.9 Dividends per share 0.28 0.2775 0.9 Book value per share 34.70 33.79 2.7 Tangible book value per share(1) 29.52 28.60 3.2 Weighted-average diluted shares outstanding (thousands) 130,255 129,816 0.3 End of period shares outstanding (thousands) 129,720 129,719 0.1 Balance sheet data at period end: Total assets $ 26,605,938 $ 27,276,892 (2.5 )% Total loans 18,271,670 18,715,065 (2.4 ) Non-purchased loans 17,611,848 17,979,435 (2.0 ) Purchased loans 659,822 735,630 (10.3 ) Allowance for loan losses 248,753 268,077 (7.2 ) Foreclosed assets 7,542 8,436 (10.6 ) Investment securities − AFS 4,693,396 4,162,479 12.8 Goodwill and other intangible assets, net 672,125 673,728 (0.2 ) Deposits 20,706,777 21,296,442 (2.8 ) Other borrowings 750,228 750,361 (0.1 ) Subordinated notes 224,236 224,141 0.1 Subordinated debentures 120,752 120,613 0.1 Unfunded balance of closed loans 11,709,818 11,780,099 (0.6 ) Reserve for losses on unfunded loan commitments 58,811 74,230 (20.8 ) Total common stockholders’ equity 4,501,676 4,383,205 2.7 Net unrealized gains on investment securities AFS included in common stockholders' equity 50,127 50,464 Loan (including purchased loans) to deposit ratio 88.24 % 87.88 % Selected ratios: Return on average assets(2) 2.24 % 2.23 % Return on average common stockholders’ equity(2) 13.65 13.97 Return on average tangible common stockholders’ equity(1) (2) 16.10 16.57 Average common equity to total average assets 16.42 15.93 Net interest margin – FTE(2) 3.95 3.86 Efficiency ratio 38.43 39.57 Net charge-offs to average non-purchased loans(2) (3) 0.09 0.08 Net charge-offs to average total loans(2) 0.08 0.07 Nonperforming loans to total loans(4) 0.22 0.25 Nonperforming assets to total assets(4) 0.18 0.19 Allowance for loan losses to total loans(5) 1.36 1.43 Other information: Non-accrual loans(4) $ 38,195 $ 43,059 Accruing loans − 90 days past due(4) — — Troubled and restructured non-purchased loans − accruing(4) 1,365 1,380 (1) Calculations of pre-tax pre-provision net revenue, tangible book value per common share and return on average tangible common stockholders’ equity and the reconciliations to GAAP are included in the schedules accompanying this release.
(2) Ratios for interim periods annualized based on actual days.
(3) Excludes purchased loans and net charge-offs related to such loans.
(4) Excludes purchased loans, except for their inclusion in total assets.
(5) Excludes reserve for losses on unfunded loan commitments.Bank OZK
Supplemental Quarterly Financial Data
Unaudited9/30/19 12/31/19 3/31/20 6/30/20 9/30/20 12/31/20 3/31/21 6/30/21 (Dollars in thousands, except per share amounts) Earnings Summary: Net interest income $ 218,780 $ 214,977 $ 209,775 $ 216,593 $ 224,657 $ 237,600 $ 234,636 $ 240,746 Federal tax (FTE) adjustment 1,038 1,028 1,133 1,753 1,605 1,533 1,275 1,355 Net interest income (FTE) 219,818 216,005 210,908 218,346 226,262 239,133 235,911 242,101 Provision for credit losses (7,854 ) (4,938 ) (117,663 ) (72,026 ) (7,200 ) (6,750 ) 31,559 30,932 Non-interest income 26,446 30,406 27,680 21,591 26,676 28,661 32,117 27,742 Non-interest expense (100,914 ) (104,406 ) (103,425 ) (100,953 ) (105,641 ) (103,394 ) (106,059 ) (103,711 ) Pretax income (FTE) 137,496 137,067 17,500 66,958 140,097 157,650 193,528 197,064 FTE adjustment (1,038 ) (1,028 ) (1,133 ) (1,753 ) (1,605 ) (1,533 ) (1,275 ) (1,355 ) Provision for income taxes (32,574 ) (35,240 ) (4,509 ) (14,948 ) (29,251 ) (35,607 ) (43,818 ) (45,161 ) Noncontrolling interest 7 7 8 9 12 3 (19 ) (13 ) Net income available to common stockholders $ 103,891 $ 100,806 $ 11,866 $ 50,266 $ 109,253 $ 120,513 $ 148,416 $ 150,535 Earnings per common share – diluted $ 0.81 $ 0.78 $ 0.09 $ 0.39 $ 0.84 $ 0.93 $ 1.14 $ 1.16 Non-interest Income: Service charges on deposit accounts $ 10,827 $ 10,933 $ 10,009 $ 8,281 $ 9,427 $ 9,983 $ 9,665 $ 10,311 Trust income 1,975 2,010 1,939 1,759 1,936 1,909 2,206 1,911 BOLI income: Increase in cash surrender value 5,208 5,167 5,067 5,057 5,081 5,034 4,881 4,919 Death benefits 206 2,989 608 — — — 1,409 — Loan service, maintenance and other fees 4,197 4,282 3,716 3,394 3,351 3,797 3,551 3,953 Gains on sales of other assets 189 1,358 161 621 891 5,189 5,828 2,341 Net gains on investment securities — — 2,223 — 2,244 — — — Other 3,844 3,667 3,957 2,479 3,746 2,749 4,577 4,307 Total non-interest income $ 26,446 $ 30,406 $ 27,680 $ 21,591 $ 26,676 $ 28,661 $ 32,117 $ 27,742 Non-interest Expense: Salaries and employee benefits $ 48,376 $ 52,050 $ 51,473 $ 48,410 $ 53,119 $ 53,832 $ 53,645 $ 52,119 Net occupancy and equipment 14,825 14,855 15,330 15,756 16,676 15,617 16,468 16,168 Other operating expenses 37,713 37,501 36,622 36,787 35,846 33,945 35,946 35,424 Total non-interest expense $ 100,914 $ 104,406 $ 103,425 $ 100,953 $ 105,641 $ 103,394 $ 106,059 $ 103,711 Balance Sheet Data: Total assets $ 23,402,679 $ 23,555,728 $ 24,565,810 $ 26,380,409 $ 26,888,308 $ 27,162,596 $ 27,276,892 $ 26,605,938 Non-purchased loans 16,307,621 16,224,539 17,030,378 18,247,431 18,419,958 18,401,495 17,979,435 17,611,848 Purchased loans 1,427,230 1,307,504 1,197,826 1,063,647 938,485 807,673 735,630 659,822 Investment securities – AFS 2,414,722 2,277,389 2,816,556 3,299,944 3,468,243 3,405,351 4,162,479 4,693,396 Deposits 18,440,078 18,474,259 18,809,190 20,723,598 21,287,405 21,450,356 21,296,442 20,706,777 Unfunded balance of closed loans 11,429,918 11,325,598 11,334,737 11,411,441 11,604,614 11,847,117 11,780,099 11,709,818 Common stockholders' equity 4,078,324 4,150,351 4,083,150 4,110,666 4,186,285 4,272,271 4,383,205 4,501,676 Bank OZK
Supplemental Quarterly Financial Data (Continued)
Unaudited9/30/19 12/31/19 3/31/20 6/30/20 9/30/20 12/31/20 3/31/21 6/30/21 (Dollars in thousands, except per share amounts) Allowance for Credit Losses: Balance at beginning of period $ 106,642 $ 109,001 $ 108,525 $ 316,409 $ 374,494 $ 377,273 $ 377,305 $ 342,307 Adoption of CECL(1) methodology — — 94,512 — — — — — Net charge-offs (5,495 ) (5,414 ) (4,291 ) (13,941 ) (4,421 ) (6,718 ) (3,439 ) (3,811 ) Provision for credit losses 7,854 4,938 117,663 72,026 7,200 6,750 (31,559 ) (30,932 ) Balance at end of period $ 109,001 $ 108,525 $ 316,409 $ 374,494 $ 377,273 $ 377,305 $ 342,307 $ 307,564 Allowance for loan losses $ 109,001 $ 108,525 $ 238,737 $ 306,196 $ 308,847 $ 295,824 $ 268,077 $ 248,753 Reserve for losses on unfunded loan commitments — — 77,672 68,298 68,426 81,481 74,230 58,811 Total allowance for credit losses $ 109,001 $ 108,525 $ 316,409 $ 374,494 $ 377,273 $ 377,305 $ 342,307 $ 307,564 Selected Ratios: Net interest margin – FTE(2) 4.26 % 4.15 % 3.96 % 3.74 % 3.69 % 3.88 % 3.86 % 3.95 % Efficiency ratio 40.98 42.37 43.35 42.07 41.77 38.61 39.57 38.43 Net charge-offs to average non-purchased loans(2) (3) 0.07 0.10 0.08 0.05 0.09 0.14 0.08 0.09 Net charge-offs to average total loans(2) 0.12 0.12 0.10 0.29 0.09 0.14 0.07 0.08 Nonperforming loans to total loans(4) 0.17 0.15 0.16 0.18 0.15 0.25 0.25 0.22 Nonperforming assets to total assets(4) 0.26 0.18 0.19 0.19 0.17 0.21 0.19 0.18 Allowance for loan losses to total loans (5) 0.61 0.62 1.31 1.59 1.60 1.54 1.43 1.36 Loans past due 30 days or more, including past due non-accrual loans, to total loans(4) 0.14 0.19 0.18 0.13 0.13 0.16 0.13 0.10 (1) Current Expected Credit Loss.
(2) Ratios for interim periods annualized based on actual days.
(3) Excludes purchased loans and net charge-offs related to such loans.
(4) Excludes purchased loans, except for their inclusion in total assets.
(5) Excludes reserve for losses on unfunded loan commitments.Bank OZK
Average Consolidated Balance Sheets and Net Interest Analysis – FTE
UnauditedThree Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Average
BalanceIncome/
ExpenseYield/
RateAverage
BalanceIncome/
ExpenseYield/
RateAverage
BalanceIncome/
ExpenseYield/
RateAverage
BalanceIncome/
ExpenseYield/
Rate(Dollars in thousands) ASSETS Earning assets: Interest earning deposits and federal funds sold $ 1,886,166 $ 496 0.11 % $ 1,303,791 $ 330 0.10 % $ 2,048,521 $ 1,033 0.10 % $ 1,335,544 $ 4,706 0.71 % Investment securities: Taxable 3,508,655 9,467 1.08 1,923,362 11,055 2.31 2,968,393 17,550 1.19 1,859,711 21,814 2.36 Tax-exempt – FTE 963,522 4,915 2.05 1,151,492 7,400 2.58 1,065,110 9,574 1.81 818,777 11,953 2.94 Non-purchased loans – FTE 17,544,405 238,877 5.46 17,963,230 233,015 5.22 17,864,558 479,001 5.41 17,244,750 465,046 5.42 Purchased loans 697,136 11,699 6.73 1,133,611 17,087 6.06 736,399 23,635 6.47 1,199,512 38,474 6.45 Total earning assets – FTE 24,599,884 265,454 4.33 23,475,486 268,887 4.61 24,682,981 530,793 4.34 22,458,294 541,993 4.85 Non-interest earning assets 2,345,169 2,318,334 2,312,504 2,335,832 Total assets $ 26,945,053 $ 25,793,820 $ 26,995,485 $ 24,794,126 LIABILITIES AND STOCKHOLDERS’ EQUITY Interest bearing liabilities: Deposits: Savings and interest bearing transaction $ 8,735,178 $ 3,338 0.15 % $ 7,517,260 $ 7,702 0.41 % $ 8,537,681 $ 6,954 0.16 % $ 7,824,330 $ 27,449 0.71 % Time deposits of $100 or more 5,592,645 10,317 0.74 5,279,716 23,765 1.81 5,842,740 24,229 0.84 4,834,026 45,955 1.91 Other time deposits 2,407,569 4,576 0.76 3,752,793 13,784 1.48 2,652,713 11,399 0.87 3,543,161 29,529 1.68 Total interest bearing deposits 16,735,392 18,231 0.44 16,549,769 45,251 1.10 17,033,134 42,582 0.50 16,201,517 102,933 1.28 Repurchase agreements with customers 7,161 6 0.33 8,087 6 0.30 6,484 10 0.30 7,985 13 0.31 Other borrowings(1) 750,274 996 0.53 1,043,004 963 0.37 750,329 1,982 0.53 669,987 1,013 0.30 Subordinated notes 224,188 3,181 5.69 223,793 3,172 5.70 224,140 6,326 5.69 223,752 6,344 5.70 Subordinated debentures(1) 120,680 939 3.12 120,120 1,149 3.85 120,610 1,881 3.14 120,052 2,436 4.08 Total interest bearing liabilities 17,837,695 23,353 0.53 17,944,773 50,541 1.13 18,134,697 52,781 0.59 17,223,293 112,739 1.32 Non-interest bearing liabilities: Non-interest bearing deposits 4,366,380 3,478,030 4,170,685 3,202,663 Other non-interest bearing liabilities 314,768 257,874 321,546 251,026 Total liabilities 22,518,843 21,680,677 22,626,928 20,676,982 Common stockholders’ equity 4,423,093 4,110,038 4,365,454 4,114,035 Noncontrolling interest 3,117 3,105 3,103 3,109 Total liabilities and stockholders’ equity $ 26,945,053 $ 25,793,820 $ 26,995,485 $ 24,794,126 Net interest income – FTE $ 242,101 $ 218,346 $ 478,012 $ 429,254 Net interest margin – FTE 3.95 % 3.74 % 3.91 % 3.84 % Core spread(2) 5.02 % 4.12 % 4.91 % 4.14 % (1) The interest expense and the rates for “other borrowings” and for “subordinated debentures” were affected by capitalized interest. Capitalized interest included in other borrowings totaled $0.02 million for the second quarter and $0.05 million for the first six months of 2021 compared to $0.27 million for the second quarter and $0.62 million for the first six months of 2020. In the absence of this interest capitalization, the rates on other borrowings would have been 0.54% for the second quarter and 0.55% for the first six months of 2021 compared to 0.47% for the second quarter and 0.49% for the first six months of 2020. Capitalized interest included in subordinated debentures totaled $0.03 million for the second quarter and $0.18 million for the first six months of 2020 (none in the second quarter or first six months of 2021). In the absence of this interest capitalization, the rates on subordinated debentures would have been 3.95% for the second quarter and 4.37% for the first six months of 2020.
(2) Core spread is the difference between the yield on the Bank’s non-purchased loans-FTE and the rate on its interest bearing deposits.
Bank OZK
Reconciliation of Non-GAAP Financial MeasuresCalculation of Average Tangible Common Stockholders’ Equity
and the Annualized Return on Average Tangible Common Stockholders’ Equity
UnauditedThree Months Ended Six Months Ended June 30, 2021 June 30, 2020 March 31, 2021 June 30, 2021 June 30, 2020 (Dollars in thousands) Net income available to common stockholders $ 150,535 $ 50,266 $ 148,416 $ 298,950 $ 62,132 Average common stockholders’ equity before noncontrolling interest $ 4,423,093 $ 4,110,038 $ 4,307,174 $ 4,365,454 $ 4,114,035 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 (12,175 ) (19,563 ) (13,828 ) (12,997 ) (20,987 ) Total average intangibles (672,964 ) (680,352 ) (674,617 ) (673,786 ) (681,776 ) Average tangible common stockholders’ equity $ 3,750,129 $ 3,429,686 $ 3,632,557 $ 3,691,668 $ 3,432,259 Return on average common stockholders’ equity(1) 13.65 % 4.92 % 13.97 % 13.81 % 3.04 % Return on average tangible common stockholders' equity(1) 16.10 % 5.89 % 16.57 % 16.33 % 3.64 % (1) Ratios for interim periods annualized based on actual days.
Calculation of Total Tangible Common Stockholders’ Equity
and Tangible Book Value per Common Share
UnauditedJune 30, March 31, 2021 2020 2021 (In thousands, except per share amounts) Total common stockholders’ equity before noncontrolling interest $ 4,501,676 $ 4,110,666 $ 4,383,205 Less intangible assets: Goodwill (660,789 ) (660,789 ) (660,789 ) Core deposit and other intangible assets, net of accumulated amortization (11,336 ) (18,377 ) (12,939 ) Total intangibles (672,125 ) (679,166 ) (673,728 ) Total tangible common stockholders' equity $ 3,829,551 $ 3,431,500 $ 3,709,477 Shares of common stock outstanding 129,720 129,350 129,719 Book value per common share $ 34.70 $ 31.78 $ 33.79 Tangible book value per common share $ 29.52 $ 26.53 $ 28.60 Calculation of Total Tangible Common Stockholders’ Equity
and the Ratio of Total Tangible Common Stockholders’ Equity
to Total Tangible Assets
UnauditedJune 30, 2021 2020 (Dollars in thousands) Total common stockholders’ equity before noncontrolling interest $ 4,501,676 $ 4,110,666 Less intangible assets: Goodwill (660,789 ) (660,789 ) Core deposit and other intangible assets, net of accumulated amortization (11,336 ) (18,377 ) Total intangibles (672,125 ) (679,166 ) Total tangible common stockholders' equity $ 3,829,551 $ 3,431,500 Total assets $ 26,605,938 $ 26,380,409 Less intangible assets: Goodwill (660,789 ) (660,789 ) Core deposit and other intangible assets, net of accumulated amortization (11,336 ) (18,377 ) Total intangibles (672,125 ) (679,166 ) Total tangible assets $ 25,933,813 $ 25,701,243 Ratio of total common stockholders’ equity to total assets 16.92 % 15.58 % Ratio of total tangible common stockholders’ equity to total tangible assets 14.77 % 13.35 % Calculation of Pre-Tax Pre-Provision Net Revenue
UnauditedThree Months Ended Six Months Ended June 30, 2021 June 30, 2020 March 31, 2021 June 30, 2021 June 30, 2020 (Dollars in thousands) Income before taxes $ 195,709 $ 65,205 $ 192,253 $ 387,960 $ 81,571 Provision for credit losses (30,932 ) 72,026 (31,559 ) (62,491 ) 189,689 Pre-tax pre-provision net revenue $ 164,777 $ 137,231 $ 160,694 $ 325,469 $ 271,260 Investor Contact: Tim Hicks (501) 978-2336 Media Contact: Susan Blair (501) 978-2217 