Bank OZK (the “Bank”) (Nasdaq: OZK) today announced that net income
for the fourth quarter of 2018 was $115.0 million, a 21.3% decrease
from net income of $146.2 million for the fourth quarter of
2017. Diluted earnings per common share for the fourth
quarter of 2018 were $0.89, a 21.9% decrease from $1.14 for the
fourth quarter of 2017.
For the full year of 2018, net income totaled $417.1 million, a
1.1% decrease from net income of $421.9 million for the full year
of 2017. Diluted earnings per common share for the full year
of 2018 were $3.24, a 3.3% decrease from $3.35 for the full year of
2017.
During the fourth quarter of 2017, the Bank recognized a
one-time income tax benefit of $49.8 million as a result of the
revaluation, in the fourth quarter of 2017, of the Bank’s net
deferred tax liability position to reflect the reduction in its
federal corporate income tax rate from 35% to 21% due to the Tax
Cuts and Jobs Act enacted on December 22, 2017. Additionally,
the Bank incurred pre-tax expenses of approximately $0.3 million
for the fourth quarter and $11.7 million for the full year of 2018
(none in 2017) related to its name change and related strategic
rebranding.
The Bank’s annualized returns on average assets, average common
stockholders’ equity and average tangible common stockholders’
equity for the fourth quarter of 2018 were 2.04%, 12.36% and
15.24%, respectively, compared to 2.81%, 17.23% and 21.84%,
respectively, for the fourth quarter of 2017. The Bank’s
returns on average assets, average common stockholders’ equity and
average tangible common stockholders’ equity for the full year of
2018 were 1.90%, 11.59% and 14.41%, respectively, compared to
2.15%, 13.49% and 17.49%, respectively, for the full year of
2017. The calculation of the Bank’s return on average
tangible common stockholders’ equity and the reconciliation to
generally accepted accounting principles (“GAAP”) are included in
the schedules accompanying this release.
“We had excellent fourth quarter results, achieving our most
profitable quarter of the year with net income of $115.0 million
and an annualized return on average assets of 2.04%,” stated George
Gleason, Chairman and Chief Executive Officer. “For the full year
of 2018, our net income was $417.1 million and our return on
average assets was 1.90%. Our strong net income in 2018
resulted in meaningful increases in our already strong risked based
capital ratios and allowed us to increase our cash dividends each
quarter. In 2018 we completed our strategic rebranding and
continued our efforts to enhance our team of industry and
technology professionals, which is key to our competitive
advantage. We believe we are well positioned for success in
2019.”
KEY BALANCE SHEET METRICS
Total loans, including purchased loans, were $17.12 billion at
December 31, 2018, a 6.7% increase from $16.04 billion at December
31, 2017. Non-purchased loans, which exclude loans acquired
in previous acquisitions, were $15.07 billion at December 31, 2018,
an 18.4% increase from $12.73 billion at December 31, 2017.
Purchased loans, which consist of loans acquired in previous
acquisitions, were $2.04 billion at December 31, 2018, a 38.2%
decrease from $3.31 billion at December 31, 2017. The
unfunded balance of closed loans totaled $11.36 billion at December
31, 2018, a 13.9% decrease from $13.19 billion at December 31,
2017.
Deposits were $17.94 billion at December 31, 2018, a 4.3%
increase from $17.19 billion at December 31, 2017. Total
assets were $22.39 billion at December 31, 2018, a 5.2% increase
from $21.28 billion at December 31, 2017.
Common stockholders’ equity was $3.77 billion at December 31,
2018, an 8.9% increase from $3.46 billion at December 31,
2017. Tangible common stockholders’ equity was $3.07 billion
at December 31, 2018, an 11.7% increase from $2.75 billion at
December 31, 2017. Book value per common share was $29.32 at
December 31, 2018, an 8.7% increase from $26.98 at December 31,
2017. Tangible book value per common share was $23.90 at
December 31, 2018, an 11.4% increase from $21.45 at December 31,
2017. 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 16.84% at December 31, 2018 compared to 16.27% at
December 31, 2017. Its ratio of total tangible common
stockholders’ equity to total tangible assets was 14.17% at
December 31, 2018 compared to 13.38% at December 31, 2017.
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.
NET INTEREST INCOME
Net interest income for the fourth quarter of 2018 was $228.4
million, a 6.3% increase from $214.8 million for the fourth quarter
of 2017. Net interest margin, on a fully taxable equivalent
(“FTE”) basis, was 4.55% for the fourth quarter of 2018, a decrease
of 17 basis points from 4.72% for the fourth quarter of 2017.
Average earning assets were $20.00 billion for the fourth quarter
of 2018, a 9.4% increase from $18.28 billion for the fourth quarter
of 2017.
Net interest income for the full year of 2018 was $891.4
million, a 9.1% increase from $817.4 million for the full year of
2017. Net interest margin, on a FTE basis, was 4.59% for the
full year of 2018, a decrease of 26 basis points from 4.85% for the
full year of 2017. Average earning assets were $19.52 billion
for the full year of 2018, a 14.1% increase from $17.11 billion for
the full year of 2017.
NON-INTEREST INCOME
Non-interest income for the fourth quarter of 2018 decreased
8.8% to $27.6 million compared to $30.2 million for the fourth
quarter of 2017. Non-interest income for the full year of
2018 decreased 13.0% to $107.8 million compared to $123.9 million
for the full year of 2017.
The Bank’s service charges on deposit accounts decreased from
$42.9 million in 2017 to $39.5 million in 2018 primarily due to the
Durbin Amendment’s impact on the Bank’s interchange revenue
effective July 1, 2017. The Bank’s mortgage lending income
decreased from $6.4 million in 2017 to $0.5 million in 2018 as a
result of the Bank’s decision in December 2017 to exit secondary
market mortgage lending and the wind down of that business in early
2018.
NON-INTEREST EXPENSE
Non-interest expense for the fourth quarter of 2018 increased
10.1% to $94.9 million compared to $86.2 million for the fourth
quarter of 2017. Non-interest expense for the full year of
2018 increased 14.5% to $380.8 million compared to $332.7 million
for the full year of 2017. Non-interest expense included
approximately $0.3 million for the fourth quarter and $11.7 million
for the full year of 2018 (none in 2017) related to the name change
and the related strategic rebranding.
The Bank’s efficiency ratio (non-interest expense divided by the
sum of net interest income FTE and non-interest income) for the
fourth quarter of 2018 was 36.9% compared to 34.8% for the fourth
quarter of 2017. The Bank’s efficiency ratio for the full
year of 2018 was 37.9% compared to 34.9% for the full year of
2017.
ASSET QUALITY, CHARGE-OFFS, PROVISIONS AND
ALLOWANCE
Excluding purchased loans, the Bank’s ratio of nonperforming
loans as a percent of total loans was 0.23% at December 31, 2018
compared to 0.10% at December 31, 2017, and its ratio of
nonperforming assets as a percent of total assets was 0.23% at
December 31, 2018 compared to 0.18% at December 31, 2017.
Excluding purchased loans, the Bank’s ratio of loans past due 30
days or more, including past due non-accrual loans, to total loans
was 0.28% at December 31, 2018 compared to 0.15% at December 31,
2017.
The Bank’s annualized net charge-off ratio for non-purchased
loans was 0.06% for the fourth quarter of 2018 compared to 0.08%
for the fourth quarter of 2017, and it was 0.38% for the full year
of 2018 compared to 0.06% for the full year of 2017. The
Bank’s annualized net charge-off ratio for all loans was 0.07% for
the fourth quarter of 2018 compared to 0.05% for the fourth quarter
of 2017, and it was 0.34% for the full year of 2018 compared to
0.07% for the full year of 2017.
The Bank’s provision for loan losses totaled $7.3 million for
the fourth quarter and $64.4 million for the full year of 2018
compared to $9.3 million for the fourth quarter and $28.1 million
for the full year of 2017.
The increases in the Bank’s net charge-off ratios and provision
expense for the full year of 2018 compared to 2017 were primarily
due to the charge-offs totaling $45.5 million during the third
quarter of 2018 on two Real Estate Specialties Group credits.
The Bank’s allowance for loan losses for its non-purchased loans
was $100.7 million, or 0.67% of total non-purchased loans, at
December 31, 2018 compared to $92.5 million, or 0.73% of total
non-purchased loans, at December 31, 2017. The Bank had $1.6
million of allowance for loan losses for its purchased loans at
both December 31, 2018 and 2017.
MANAGEMENT’S COMMENTS, CONFERENCE CALL, TRANSCRIPT AND
FILINGS
In connection with this release, the Bank released management’s
comments on its quarterly and year end results. Management
will conduct a conference call to take questions on the quarterly
and year end results and management’s comments at 10:00 a.m. CT
(11:00 a.m. ET) on Friday, January 18, 2019. Interested
parties may listen to this call by dialing 1-844-818-5110 (U.S. and
Canada) or 210-229-8841 (internationally) and asking for the Bank
OZK conference call. A recorded playback of the call will be
available for one week following the call at 1-855-859-2056 (U.S.
and Canada) or 404-537-3406 (internationally). The passcode
for this playback is 4759034. 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
ir.ozk.com.
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 and the ratio of total tangible common stockholders’ equity
to total tangible assets, as important measures of the strength of
its capital and its ability to generate earnings on its tangible
capital invested by its shareholders. These measures typically
adjust GAAP financial measures to exclude intangible assets.
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, nor are they 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 sites, hiring or retaining qualified
personnel, obtaining regulatory or other approvals, obtaining
permits and designing, constructing and opening new offices; the
ability to enter into and/or close additional acquisitions;
problems with, or additional expenses relating to, integrating
acquisitions; the inability to realize expected cost savings and/or
synergies from acquisitions; problems with managing acquisitions;
the effect of the announcements of any future acquisition on
customer relationships and operating results; the availability of
and access to capital; possible downgrades in the Bank’s credit
ratings or outlook which could increase the costs or availability
of funding from capital markets; the ability to attract new or
retain existing or acquired deposits or to retain or grow loans,
including growth from unfunded closed loans; the ability to
generate future revenue growth or to control future growth in
non-interest expense; interest rate fluctuations, including changes
in the yield curve between short-term and long-term interest rates
or changes in the relative relationships of various interest rate
indices; 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; changes in U.S. government monetary and fiscal
policy; future 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, our operational or security systems or
infrastructure, or those of third parties with whom we do 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; 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 Bank’s public filings,
including those factors included 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, 2017 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. Bank OZK has been recognized as the #1
bank in the nation in its asset size for eight consecutive years.
Headquartered in Little Rock, Arkansas, Bank OZK conducts
operations through 253 offices in Arkansas, Georgia, Florida, North
Carolina, Texas, Alabama, South Carolina, 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 |
|
Unaudited |
|
|
|
|
December 31, |
|
|
2018 |
|
|
2017 |
|
|
|
|
|
(Dollars in thousands, except per share amounts) |
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
Cash and cash
equivalents |
$ |
290,672 |
|
|
$ |
440,388 |
|
Investment securities -
available for sale |
|
2,862,340 |
|
|
|
2,593,873 |
|
Federal Home Loan Bank
of Dallas and other banker's bank stocks |
|
25,941 |
|
|
|
28,923 |
|
Non-purchased
loans |
|
15,073,791 |
|
|
|
12,733,937 |
|
Purchased loans |
|
2,044,032 |
|
|
|
3,309,092 |
|
Allowance for loan
losses |
|
(102,264 |
) |
|
|
(94,120 |
) |
Net
loans |
|
17,015,559 |
|
|
|
15,948,909 |
|
Premises and equipment,
net |
|
567,189 |
|
|
|
519,811 |
|
Foreclosed assets |
|
16,171 |
|
|
|
25,357 |
|
Accrued interest
receivable |
|
81,968 |
|
|
|
64,608 |
|
Bank owned life
insurance (“BOLI”) |
|
721,238 |
|
|
|
658,147 |
|
Intangible assets,
net |
|
696,461 |
|
|
|
709,040 |
|
Other, net |
|
110,491 |
|
|
|
286,591 |
|
Total
assets |
$ |
22,388,030 |
|
|
$ |
21,275,647 |
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’
EQUITY |
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
Demand
non-interest bearing |
$ |
2,748,273 |
|
|
$ |
2,726,623 |
|
Savings
and interest bearing transaction |
|
9,682,713 |
|
|
|
10,051,122 |
|
Time |
|
5,507,429 |
|
|
|
4,414,600 |
|
Total
deposits |
|
17,938,415 |
|
|
|
17,192,345 |
|
Repurchase agreements
with customers |
|
20,564 |
|
|
|
69,331 |
|
Other borrowings |
|
96,692 |
|
|
|
22,320 |
|
Subordinated notes |
|
223,281 |
|
|
|
222,899 |
|
Subordinated
debentures |
|
119,358 |
|
|
|
118,800 |
|
Accrued interest
payable and other liabilities |
|
216,355 |
|
|
|
186,164 |
|
Total
liabilities |
|
18,614,665 |
|
|
|
17,811,859 |
|
|
|
|
|
|
|
|
|
Commitments and
contingencies |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders’
equity: |
|
|
|
|
|
|
|
Preferred
stock; $0.01 par value; 100,000,000 shares authorized; no
shares |
|
— |
|
|
|
— |
|
issued or outstanding at December 31, 2018 or December 31,
2017 |
Common
stock; $0.01 par value; 300,000,000 shares authorized; |
|
1,286 |
|
|
|
1,283 |
|
128,611,049 and 128,287,550 shares issued and outstanding at |
December 31, 2018 and 2017, respectively |
Additional paid-in capital |
|
2,237,948 |
|
|
|
2,221,844 |
|
Retained
earnings |
|
1,565,201 |
|
|
|
1,250,313 |
|
Accumulated other comprehensive loss |
|
(34,105 |
) |
|
|
(12,712 |
) |
Total
stockholders’ equity before noncontrolling interest |
|
3,770,330 |
|
|
|
3,460,728 |
|
Noncontrolling interest |
|
3,035 |
|
|
|
3,060 |
|
Total
stockholders’ equity |
|
3,773,365 |
|
|
|
3,463,788 |
|
Total
liabilities and stockholders’ equity |
$ |
22,388,030 |
|
|
$ |
21,275,647 |
|
|
|
|
Bank OZK |
|
Consolidated Statements of
Income |
|
Unaudited |
|
|
|
|
Three Months Ended |
|
|
Year Ended |
|
December 31, |
December 31, |
|
2018 |
|
|
2017 |
|
|
2018 |
|
|
2017 |
|
|
|
|
|
(Dollars in thousands, except per share amounts) |
|
Interest income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-purchased loans |
$ |
237,443 |
|
|
$ |
178,525 |
|
|
$ |
858,102 |
|
|
$ |
607,548 |
|
Purchased
loans |
|
35,453 |
|
|
|
56,303 |
|
|
|
173,465 |
|
|
|
276,499 |
|
Investment securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable |
|
14,642 |
|
|
|
9,661 |
|
|
|
50,021 |
|
|
|
25,460 |
|
Tax-exempt |
|
3,941 |
|
|
|
4,343 |
|
|
|
16,193 |
|
|
|
22,430 |
|
Deposits
with banks and federal funds sold |
|
590 |
|
|
|
268 |
|
|
|
3,039 |
|
|
|
656 |
|
Total
interest income |
|
292,069 |
|
|
|
249,100 |
|
|
|
1,100,820 |
|
|
|
932,593 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
56,608 |
|
|
|
29,150 |
|
|
|
186,617 |
|
|
|
96,083 |
|
Repurchase agreements with customers |
|
26 |
|
|
|
38 |
|
|
|
785 |
|
|
|
132 |
|
Other
borrowings |
|
2,193 |
|
|
|
574 |
|
|
|
3,017 |
|
|
|
1,305 |
|
Subordinated notes |
|
3,216 |
|
|
|
3,190 |
|
|
|
12,757 |
|
|
|
12,620 |
|
Subordinated debentures |
|
1,644 |
|
|
|
1,317 |
|
|
|
6,211 |
|
|
|
5,024 |
|
Total
interest expense |
|
63,687 |
|
|
|
34,269 |
|
|
|
209,387 |
|
|
|
115,164 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income |
|
228,382 |
|
|
|
214,831 |
|
|
|
891,433 |
|
|
|
817,429 |
|
Provision for loan
losses |
|
7,271 |
|
|
|
9,279 |
|
|
|
64,398 |
|
|
|
28,092 |
|
Net interest income
after provision for loan losses |
|
221,111 |
|
|
|
205,552 |
|
|
|
827,035 |
|
|
|
789,337 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest
income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service
charges on deposit accounts |
|
10,585 |
|
|
|
10,058 |
|
|
|
39,544 |
|
|
|
42,853 |
|
Mortgage
lending income |
|
20 |
|
|
|
1,294 |
|
|
|
538 |
|
|
|
6,399 |
|
Trust
income |
|
1,821 |
|
|
|
1,729 |
|
|
|
6,935 |
|
|
|
6,691 |
|
BOLI
income |
|
5,751 |
|
|
|
5,166 |
|
|
|
23,911 |
|
|
|
18,677 |
|
Other
income from purchased loans |
|
2,370 |
|
|
|
2,009 |
|
|
|
7,784 |
|
|
|
13,456 |
|
Loan
service, maintenance and other fees |
|
5,245 |
|
|
|
4,289 |
|
|
|
20,354 |
|
|
|
15,696 |
|
Gains on
sales of other assets |
|
465 |
|
|
|
1,899 |
|
|
|
2,219 |
|
|
|
5,553 |
|
Net gains
on investment securities |
|
— |
|
|
|
1,201 |
|
|
|
17 |
|
|
|
4,033 |
|
Other |
|
1,303 |
|
|
|
2,568 |
|
|
|
6,473 |
|
|
|
10,500 |
|
Total
non-interest income |
|
27,560 |
|
|
|
30,213 |
|
|
|
107,775 |
|
|
|
123,858 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest
expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries
and employee benefits |
|
41,837 |
|
|
|
38,417 |
|
|
|
170,478 |
|
|
|
152,194 |
|
Net
occupancy and equipment |
|
14,027 |
|
|
|
13,474 |
|
|
|
56,362 |
|
|
|
53,198 |
|
Other
operating expenses |
|
39,029 |
|
|
|
34,286 |
|
|
|
153,912 |
|
|
|
127,280 |
|
Total
non-interest expense |
|
94,893 |
|
|
|
86,177 |
|
|
|
380,752 |
|
|
|
332,672 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before
taxes |
|
153,778 |
|
|
|
149,588 |
|
|
|
554,058 |
|
|
|
580,523 |
|
Provision for income
taxes |
|
38,750 |
|
|
|
3,434 |
|
|
|
136,977 |
|
|
|
158,586 |
|
Net income |
|
115,028 |
|
|
|
146,154 |
|
|
|
417,081 |
|
|
|
421,937 |
|
Earnings attributable
to noncontrolling interest |
|
3 |
|
|
|
10 |
|
|
|
25 |
|
|
|
(46 |
) |
Net income available to
common stockholders |
$ |
115,031 |
|
|
$ |
146,164 |
|
|
$ |
417,106 |
|
|
$ |
421,891 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
common share |
$ |
0.89 |
|
|
$ |
1.14 |
|
|
$ |
3.24 |
|
|
$ |
3.36 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
common share |
$ |
0.89 |
|
|
$ |
1.14 |
|
|
$ |
3.24 |
|
|
$ |
3.35 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends declared per
common share |
$ |
0.21 |
|
|
$ |
0.185 |
|
|
$ |
0.795 |
|
|
$ |
0.71 |
|
|
|
|
Bank OZK |
|
Consolidated Statements of Stockholders’
Equity |
|
Unaudited |
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated |
|
|
|
|
|
Total |
|
|
Additional |
|
Other |
Non- |
Common |
Paid-In |
Retained |
Comprehensive |
Controlling |
Stock |
Capital |
Earnings |
Loss |
Interest |
|
|
|
|
(Dollars in thousands, except per share amounts) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balances – December 31,
2017 |
$ |
1,283 |
|
|
$ |
2,221,844 |
|
|
$ |
1,250,313 |
|
|
$ |
(12,712 |
) |
|
$ |
3,060 |
|
|
$ |
3,463,788 |
|
Net income |
|
— |
|
|
|
— |
|
|
|
417,081 |
|
|
|
— |
|
|
|
— |
|
|
|
417,081 |
|
Earnings attributable
to noncontrolling interest |
|
— |
|
|
|
— |
|
|
|
25 |
|
|
|
— |
|
|
|
(25 |
) |
|
|
— |
|
Total other
comprehensive loss |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(21,393 |
) |
|
|
— |
|
|
|
(21,393 |
) |
Common stock dividends
paid, $0.795 per share |
|
— |
|
|
|
— |
|
|
|
(102,218 |
) |
|
|
— |
|
|
|
— |
|
|
|
(102,218 |
) |
Issuance of 223,840
shares of common stock for exercise of stock options |
|
2 |
|
|
|
5,740 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
5,742 |
|
Issuance of 220,326
shares of unvested restricted common stock |
|
2 |
|
|
|
(2 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Repurchase and
cancellation of 71,750 shares of common stock |
|
(1 |
) |
|
|
(3,769 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(3,770 |
) |
Stock-based
compensation expense |
|
— |
|
|
|
14,135 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
14,135 |
|
Forfeiture of 48,917
shares of unvested restricted common stock |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Balances – December 31,
2018 |
$ |
1,286 |
|
|
$ |
2,237,948 |
|
|
$ |
1,565,201 |
|
|
$ |
(34,105 |
) |
|
$ |
3,035 |
|
|
$ |
3,773,365 |
|
|
|
|
|
|
Bank OZK |
Summary of Non-Interest Expense |
Unaudited |
|
|
Three Months Ended |
|
|
Year Ended |
December 31, |
December 31, |
|
2018 |
|
|
2017 |
|
|
2018 |
|
|
2017 |
|
|
|
(Dollars in thousands) |
Salaries and employee
benefits |
$ |
41,837 |
|
|
$ |
38,417 |
|
|
$ |
170,478 |
|
|
$ |
152,194 |
Net occupancy and
equipment |
|
14,027 |
|
|
|
13,474 |
|
|
|
56,362 |
|
|
|
53,198 |
Other operating
expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Professional and outside services |
|
8,325 |
|
|
|
10,269 |
|
|
|
35,867 |
|
|
|
32,441 |
Telecommunication services |
|
3,023 |
|
|
|
3,537 |
|
|
|
13,080 |
|
|
|
13,935 |
Software
and data processing |
|
3,943 |
|
|
|
2,382 |
|
|
|
13,729 |
|
|
|
10,126 |
Postage
and supplies |
|
2,214 |
|
|
|
2,063 |
|
|
|
9,144 |
|
|
|
7,769 |
Advertising and public relations |
|
1,472 |
|
|
|
1,634 |
|
|
|
11,557 |
|
|
|
5,989 |
ATM
expense |
|
544 |
|
|
|
1,644 |
|
|
|
4,227 |
|
|
|
5,725 |
Travel
and meals |
|
2,482 |
|
|
|
2,338 |
|
|
|
9,650 |
|
|
|
8,477 |
FDIC
insurance |
|
3,100 |
|
|
|
2,700 |
|
|
|
11,800 |
|
|
|
9,700 |
FDIC and
state assessments |
|
572 |
|
|
|
883 |
|
|
|
2,940 |
|
|
|
3,414 |
Loan
collection and repossession expense |
|
1,077 |
|
|
|
949 |
|
|
|
3,302 |
|
|
|
5,303 |
Writedowns of foreclosed assets |
|
1,841 |
|
|
|
994 |
|
|
|
2,996 |
|
|
|
3,488 |
Writedown
of signage due to strategic rebranding |
|
— |
|
|
|
— |
|
|
|
4,915 |
|
|
|
— |
Amortization of intangibles |
|
3,144 |
|
|
|
3,145 |
|
|
|
12,579 |
|
|
|
12,580 |
Other |
|
7,292 |
|
|
|
1,748 |
|
|
|
18,126 |
|
|
|
8,333 |
Total
non-interest expense |
$ |
94,893 |
|
|
$ |
86,177 |
|
|
$ |
380,752 |
|
|
$ |
332,672 |
|
|
Bank OZK |
Summary of Total Loans
Outstanding |
Unaudited |
|
|
December 31, |
|
2018 |
|
|
2017 |
|
|
|
(Dollars in thousands) |
Real estate: |
|
|
|
|
|
|
Residential 1-4 family |
$ |
1,049,460 |
|
|
$ |
1,174,427 |
Non-farm/non-residential |
|
4,319,388 |
|
|
|
4,478,876 |
Construction/land development |
|
6,562,185 |
|
|
|
6,648,061 |
Agricultural |
|
165,088 |
|
|
|
150,003 |
Multifamily residential |
|
1,116,026 |
|
|
|
508,514 |
Total
real estate |
|
13,212,147 |
|
|
|
12,959,881 |
Commercial and
industrial |
|
823,417 |
|
|
|
738,225 |
Consumer |
|
2,345,863 |
|
|
|
1,472,593 |
Other |
|
736,396 |
|
|
|
872,330 |
Total
loans |
$ |
17,117,823 |
|
|
$ |
16,043,029 |
|
|
|
Bank OZK |
|
Selected Consolidated Financial
Data |
|
(Dollars in thousands, except per share amounts) |
|
Unaudited |
|
|
|
|
Three Months Ended |
|
|
Year Ended |
|
December 31, |
December 31, |
|
2018 |
|
|
2017 |
|
|
% Change |
|
|
2018 |
|
|
2017 |
|
|
% Change |
|
Income statement
data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
interest income |
$ |
228,382 |
|
|
$ |
214,831 |
|
|
|
6.3 |
% |
|
$ |
891,433 |
|
|
$ |
817,429 |
|
|
|
9.1 |
% |
Provision
for loan losses |
|
7,271 |
|
|
|
9,279 |
|
|
|
(21.6 |
) |
|
|
64,398 |
|
|
|
28,092 |
|
|
|
129.2 |
|
Non-interest income |
|
27,560 |
|
|
|
30,213 |
|
|
|
(8.8 |
) |
|
|
107,775 |
|
|
|
123,858 |
|
|
|
(13.0 |
) |
Non-interest expense |
|
94,893 |
|
|
|
86,177 |
|
|
|
10.1 |
|
|
|
380,752 |
|
|
|
332,672 |
|
|
|
14.5 |
|
Net
income available to common stockholders |
|
115,031 |
|
|
|
146,164 |
|
|
|
(21.3 |
) |
|
|
417,106 |
|
|
|
421,891 |
|
|
|
(1.1 |
) |
Common stock
data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income per share - diluted |
$ |
0.89 |
|
|
$ |
1.14 |
|
|
|
(21.9 |
)% |
|
$ |
3.24 |
|
|
$ |
3.35 |
|
|
|
(3.3 |
)% |
Net
income per share - basic |
|
0.89 |
|
|
|
1.14 |
|
|
|
(21.9 |
) |
|
|
3.24 |
|
|
|
3.36 |
|
|
|
(3.6 |
) |
Cash
dividends per share |
|
0.21 |
|
|
|
0.185 |
|
|
|
13.5 |
|
|
|
0.795 |
|
|
|
0.71 |
|
|
|
12 |
|
Book
value per share |
|
29.32 |
|
|
|
26.98 |
|
|
|
8.7 |
|
|
|
29.32 |
|
|
|
26.98 |
|
|
|
8.7 |
|
Tangible
book value per share(1) |
|
23.9 |
|
|
|
21.45 |
|
|
|
11.4 |
|
|
|
23.9 |
|
|
|
21.45 |
|
|
|
11.4 |
|
Diluted
shares outstanding (thousands) |
|
128,666 |
|
|
|
128,510 |
|
|
|
|
|
|
|
128,740 |
|
|
|
125,809 |
|
|
|
|
|
End of
period shares outstanding (thousands) |
|
128,611 |
|
|
|
128,288 |
|
|
|
|
|
|
|
128,611 |
|
|
|
128,288 |
|
|
|
|
|
Balance sheet
data at period end: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets |
$ |
22,388,030 |
|
|
$ |
21,275,647 |
|
|
|
5.2 |
% |
|
$ |
22,388,030 |
|
|
$ |
21,275,647 |
|
|
|
5.2 |
% |
Total
loans |
|
17,117,823 |
|
|
|
16,043,029 |
|
|
|
6.7 |
|
|
|
17,117,823 |
|
|
|
16,043,029 |
|
|
|
6.7 |
|
Non-purchased loans |
|
15,073,791 |
|
|
|
12,733,937 |
|
|
|
18.4 |
|
|
|
15,073,791 |
|
|
|
12,733,937 |
|
|
|
18.4 |
|
Purchased
loans |
|
2,044,032 |
|
|
|
3,309,092 |
|
|
|
(38.2 |
) |
|
|
2,044,032 |
|
|
|
3,309,092 |
|
|
|
(38.2 |
) |
Allowance
for loan losses |
|
102,264 |
|
|
|
94,120 |
|
|
|
8.7 |
|
|
|
102,264 |
|
|
|
94,120 |
|
|
|
8.7 |
|
Foreclosed assets |
|
16,171 |
|
|
|
25,357 |
|
|
|
(36.2 |
) |
|
|
16,171 |
|
|
|
25,357 |
|
|
|
(36.2 |
) |
Investment securities |
|
2,888,281 |
|
|
|
2,622,796 |
|
|
|
10.1 |
|
|
|
2,888,281 |
|
|
|
2,622,796 |
|
|
|
10.1 |
|
Goodwill
and other intangible assets |
|
696,461 |
|
|
|
709,040 |
|
|
|
(1.8 |
) |
|
|
696,461 |
|
|
|
709,040 |
|
|
|
(1.8 |
) |
Deposits |
|
17,938,415 |
|
|
|
17,192,345 |
|
|
|
4.3 |
|
|
|
17,938,415 |
|
|
|
17,192,345 |
|
|
|
4.3 |
|
Repurchase agreements with customers |
|
20,564 |
|
|
|
69,331 |
|
|
|
(70.3 |
) |
|
|
20,564 |
|
|
|
69,331 |
|
|
|
(70.3 |
) |
Other
borrowings |
|
96,692 |
|
|
|
22,320 |
|
|
|
333.2 |
|
|
|
96,692 |
|
|
|
22,320 |
|
|
|
333.2 |
|
Subordinated notes |
|
223,281 |
|
|
|
222,899 |
|
|
|
0.2 |
|
|
|
223,281 |
|
|
|
222,899 |
|
|
|
0.2 |
|
Subordinated debentures |
|
119,358 |
|
|
|
118,800 |
|
|
|
0.5 |
|
|
|
119,358 |
|
|
|
118,800 |
|
|
|
0.5 |
|
Unfunded
balance of closed loans |
|
11,364,975 |
|
|
|
13,192,439 |
|
|
|
(13.9 |
) |
|
|
11,364,975 |
|
|
|
13,192,439 |
|
|
|
(13.9 |
) |
Common
stockholders’ equity |
|
3,770,330 |
|
|
|
3,460,728 |
|
|
|
8.9 |
|
|
|
3,770,330 |
|
|
|
3,460,728 |
|
|
|
8.9 |
|
Net
unrealized losses on investment securities AFS included in
common stockholders' equity |
|
(34,105 |
) |
|
|
(12,712 |
) |
|
|
|
|
|
|
(34,105 |
) |
|
|
(12,712 |
) |
|
|
|
|
Loan
(including purchased loans) to deposit ratio |
|
95.43 |
% |
|
|
93.31 |
% |
|
|
|
|
|
|
95.43 |
% |
|
|
93.31 |
% |
|
|
|
|
Selected
ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on
average assets(2) |
|
2.04 |
% |
|
|
2.81 |
% |
|
|
|
|
|
|
1.9 |
% |
|
|
2.15 |
% |
|
|
|
|
Return on
average common stockholders’ equity(2) |
|
12.36 |
|
|
|
17.23 |
|
|
|
|
|
|
|
11.59 |
|
|
|
13.49 |
|
|
|
|
|
Return on
average tangible common stockholders’ equity(1) (2) |
|
15.24 |
|
|
|
21.84 |
|
|
|
|
|
|
|
14.41 |
|
|
|
17.49 |
|
|
|
|
|
Average
common equity to total average assets |
|
16.54 |
|
|
|
16.32 |
|
|
|
|
|
|
|
16.42 |
|
|
|
15.91 |
|
|
|
|
|
Net
interest margin – FTE(2) |
|
4.55 |
|
|
|
4.72 |
|
|
|
|
|
|
|
4.59 |
|
|
|
4.85 |
|
|
|
|
|
Efficiency ratio |
|
36.9 |
|
|
|
34.82 |
|
|
|
|
|
|
|
37.93 |
|
|
|
34.88 |
|
|
|
|
|
Net
charge-offs to average non-purchased loans(2) (3) |
|
0.06 |
|
|
|
0.08 |
|
|
|
|
|
|
|
0.38 |
|
|
|
0.06 |
|
|
|
|
|
Net
charge-offs to average total loans(2) |
|
0.07 |
|
|
|
0.05 |
|
|
|
|
|
|
|
0.34 |
|
|
|
0.07 |
|
|
|
|
|
Nonperforming loans to total loans(4) |
|
0.23 |
|
|
|
0.1 |
|
|
|
|
|
|
|
0.23 |
|
|
|
0.1 |
|
|
|
|
|
Nonperforming assets to total assets(4) |
|
0.23 |
|
|
|
0.18 |
|
|
|
|
|
|
|
0.23 |
|
|
|
0.18 |
|
|
|
|
|
Allowance
for loan losses to non-purchased loans(5) |
|
0.67 |
|
|
|
0.73 |
|
|
|
|
|
|
0.67 |
|
|
|
0.73 |
|
|
|
|
|
Other
information: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-accrual loans(4) |
$ |
34,762 |
|
|
$ |
12,899 |
|
|
|
|
|
|
$ |
34,762 |
|
|
$ |
12,899 |
|
|
|
|
|
Accruing
loans - 90 days past due(4) |
|
— |
|
|
|
— |
|
|
|
|
|
|
|
— |
|
|
|
— |
|
|
|
|
|
Troubled
and restructured non-purchased loans - accruing(4) |
|
627 |
|
|
|
— |
|
|
|
|
|
|
|
627 |
|
|
|
— |
|
|
|
|
|
Impaired
purchased loans |
|
7,801 |
|
|
|
10,019 |
|
|
|
|
|
|
|
7,971 |
|
|
|
10,019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)Calculations of 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 purchased
loans and any allowance for such loans. |
|
Bank OZK |
|
Supplemental Quarterly Financial
Data |
|
(Dollars in thousands, except per share amounts) |
|
Unaudited |
|
|
|
|
3/31/2017 |
|
|
6/30/2017 |
|
|
9/30/2017 |
|
|
12/31/2017 |
|
|
3/31/2018 |
|
|
6/30/2018 |
|
|
9/30/2018 |
|
|
12/31/2018 |
|
Earnings
Summary: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
interest income |
$ |
190,771 |
|
|
$ |
202,105 |
|
|
$ |
209,722 |
|
|
$ |
214,831 |
|
|
$ |
217,776 |
|
|
$ |
224,661 |
|
|
$ |
220,614 |
|
|
$ |
228,382 |
|
Federal
tax (FTE) adjustment |
|
3,594 |
|
|
|
3,396 |
|
|
|
3,014 |
|
|
|
2,450 |
|
|
|
1,166 |
|
|
|
1,151 |
|
|
|
1,132 |
|
|
|
1,219 |
|
Net
interest income (FTE) |
|
194,365 |
|
|
|
205,501 |
|
|
|
212,736 |
|
|
|
217,281 |
|
|
|
218,942 |
|
|
|
225,812 |
|
|
|
221,746 |
|
|
|
229,601 |
|
Provision
for loan losses |
|
(4,933 |
) |
|
|
(6,103 |
) |
|
|
(7,777 |
) |
|
|
(9,279 |
) |
|
|
(5,567 |
) |
|
|
(9,610 |
) |
|
|
(41,949 |
) |
|
|
(7,271 |
) |
Non-interest income |
|
29,058 |
|
|
|
31,840 |
|
|
|
32,747 |
|
|
|
30,213 |
|
|
|
28,707 |
|
|
|
27,386 |
|
|
|
24,121 |
|
|
|
27,560 |
|
Non-interest expense |
|
(78,268 |
) |
|
|
(83,828 |
) |
|
|
(84,399 |
) |
|
|
(86,177 |
) |
|
|
(93,810 |
) |
|
|
(89,107 |
) |
|
|
(102,942 |
) |
|
|
(94,893 |
) |
Pretax
income (FTE) |
|
140,222 |
|
|
|
147,410 |
|
|
|
153,307 |
|
|
|
152,038 |
|
|
|
148,272 |
|
|
|
154,481 |
|
|
|
100,976 |
|
|
|
154,997 |
|
FTE
adjustment |
|
(3,594 |
) |
|
|
(3,396 |
) |
|
|
(3,014 |
) |
|
|
(2,450 |
) |
|
|
(1,166 |
) |
|
|
(1,151 |
) |
|
|
(1,132 |
) |
|
|
(1,219 |
) |
Provision
for income taxes |
|
(47,417 |
) |
|
|
(53,488 |
) |
|
|
(54,246 |
) |
|
|
(3,434 |
) |
|
|
(33,973 |
) |
|
|
(38,589 |
) |
|
|
(25,665 |
) |
|
|
(38,750 |
) |
Noncontrolling interest |
|
(23 |
) |
|
|
6 |
|
|
|
(40 |
) |
|
|
10 |
|
|
|
11 |
|
|
|
10 |
|
|
|
1 |
|
|
|
3 |
|
Net
income available to common stockholders |
$ |
89,188 |
|
|
$ |
90,532 |
|
|
$ |
96,007 |
|
|
$ |
146,164 |
|
|
$ |
113,144 |
|
|
$ |
114,751 |
|
|
$ |
74,180 |
|
|
$ |
115,031 |
|
Earnings
per common share – diluted |
$ |
0.73 |
|
|
$ |
0.73 |
|
|
$ |
0.75 |
|
|
$ |
1.14 |
|
|
$ |
0.88 |
|
|
$ |
0.89 |
|
|
$ |
0.58 |
|
|
$ |
0.89 |
|
Non-interest
Income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service
charges on deposit accounts |
$ |
11,301 |
|
|
$ |
11,764 |
|
|
$ |
9,729 |
|
|
$ |
10,058 |
|
|
$ |
9,525 |
|
|
$ |
9,704 |
|
|
$ |
9,730 |
|
|
$ |
10,585 |
|
Mortgage
lending income |
|
1,574 |
|
|
|
1,910 |
|
|
|
1,620 |
|
|
|
1,294 |
|
|
|
492 |
|
|
|
1 |
|
|
|
24 |
|
|
|
20 |
|
Trust
income |
|
1,631 |
|
|
|
1,577 |
|
|
|
1,755 |
|
|
|
1,729 |
|
|
|
1,793 |
|
|
|
1,591 |
|
|
|
1,730 |
|
|
|
1,821 |
|
BOLI
income |
|
4,464 |
|
|
|
4,594 |
|
|
|
4,453 |
|
|
|
5,166 |
|
|
|
7,580 |
|
|
|
5,259 |
|
|
|
5,321 |
|
|
|
5,751 |
|
Other
income from purchased loans |
|
3,737 |
|
|
|
4,777 |
|
|
|
2,933 |
|
|
|
2,009 |
|
|
|
1,251 |
|
|
|
2,744 |
|
|
|
1,418 |
|
|
|
2,370 |
|
Loan
service, maintenance and other fees |
|
2,706 |
|
|
|
3,427 |
|
|
|
5,274 |
|
|
|
4,289 |
|
|
|
4,743 |
|
|
|
5,641 |
|
|
|
4,724 |
|
|
|
5,245 |
|
Gains
(losses) on sales of other assets |
|
1,619 |
|
|
|
672 |
|
|
|
1,363 |
|
|
|
1,899 |
|
|
|
1,426 |
|
|
|
844 |
|
|
|
(518 |
) |
|
|
465 |
|
Net gains
on investment securities |
|
— |
|
|
|
404 |
|
|
|
2,429 |
|
|
|
1,201 |
|
|
|
17 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Other |
|
2,026 |
|
|
|
2,715 |
|
|
|
3,191 |
|
|
|
2,568 |
|
|
|
1,880 |
|
|
|
1,602 |
|
|
|
1,692 |
|
|
|
1,303 |
|
Total
non-interest income |
$ |
29,058 |
|
|
$ |
31,840 |
|
|
$ |
32,747 |
|
|
$ |
30,213 |
|
|
$ |
28,707 |
|
|
$ |
27,386 |
|
|
$ |
24,121 |
|
|
$ |
27,560 |
|
Non-interest
Expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries
and employee benefits |
$ |
38,554 |
|
|
$ |
39,892 |
|
|
$ |
35,331 |
|
|
$ |
38,417 |
|
|
$ |
45,499 |
|
|
$ |
41,665 |
|
|
$ |
41,477 |
|
|
$ |
41,837 |
|
Net
occupancy expense |
|
13,192 |
|
|
|
12,937 |
|
|
|
13,595 |
|
|
|
13,474 |
|
|
|
14,150 |
|
|
|
13,827 |
|
|
|
14,358 |
|
|
|
14,027 |
|
Other
operating expenses |
|
26,522 |
|
|
|
30,999 |
|
|
|
35,473 |
|
|
|
34,286 |
|
|
|
34,161 |
|
|
|
33,615 |
|
|
|
47,107 |
|
|
|
39,029 |
|
Total
non-interest expense |
$ |
78,268 |
|
|
$ |
83,828 |
|
|
$ |
84,399 |
|
|
$ |
86,177 |
|
|
$ |
93,810 |
|
|
$ |
89,107 |
|
|
$ |
102,942 |
|
|
$ |
94,893 |
|
Balance Sheet
Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets |
$ |
19,152,212 |
|
|
$ |
20,064,589 |
|
|
$ |
20,768,493 |
|
|
$ |
21,275,647 |
|
|
$ |
22,039,439 |
|
|
$ |
22,220,380 |
|
|
$ |
22,086,539 |
|
|
$ |
22,388,030 |
|
Non-purchased loans |
|
10,216,875 |
|
|
|
11,025,203 |
|
|
|
12,047,094 |
|
|
|
12,733,937 |
|
|
|
13,674,561 |
|
|
|
14,183,533 |
|
|
|
14,440,623 |
|
|
|
15,073,791 |
|
Purchased
loans |
|
4,580,047 |
|
|
|
4,159,139 |
|
|
|
3,731,536 |
|
|
|
3,309,092 |
|
|
|
2,934,535 |
|
|
|
2,580,341 |
|
|
|
2,285,168 |
|
|
|
2,044,032 |
|
Investment securities |
|
1,470,568 |
|
|
|
2,101,751 |
|
|
|
1,975,102 |
|
|
|
2,622,796 |
|
|
|
2,612,961 |
|
|
|
2,617,859 |
|
|
|
2,706,156 |
|
|
|
2,888,281 |
|
Deposits |
|
15,713,427 |
|
|
|
16,241,440 |
|
|
|
16,823,359 |
|
|
|
17,192,345 |
|
|
|
17,833,672 |
|
|
|
17,897,085 |
|
|
|
17,822,915 |
|
|
|
17,938,415 |
|
Unfunded
balance of closed loans |
|
11,258,762 |
|
|
|
11,883,679 |
|
|
|
12,519,839 |
|
|
|
13,192,439 |
|
|
|
12,551,032 |
|
|
|
11,999,661 |
|
|
|
11,891,247 |
|
|
|
11,364,975 |
|
Common
stockholders' equity |
|
2,873,317 |
|
|
|
3,260,123 |
|
|
|
3,334,740 |
|
|
|
3,460,728 |
|
|
|
3,526,605 |
|
|
|
3,613,903 |
|
|
|
3,653,596 |
|
|
|
3,770,330 |
|
Allowance for
Loan Losses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance
at beginning of period |
$ |
76,541 |
|
|
$ |
78,224 |
|
|
$ |
82,320 |
|
|
$ |
86,784 |
|
|
$ |
94,120 |
|
|
$ |
98,097 |
|
|
$ |
104,638 |
|
|
$ |
98,200 |
|
Net
charge-offs |
|
(3,250 |
) |
|
|
(2,007 |
) |
|
|
(3,313 |
) |
|
|
(1,943 |
) |
|
|
(1,590 |
) |
|
|
(3,069 |
) |
|
|
(48,387 |
) |
|
|
(3,207 |
) |
Provision
for loan losses |
|
4,933 |
|
|
|
6,103 |
|
|
|
7,777 |
|
|
|
9,279 |
|
|
|
5,567 |
|
|
|
9,610 |
|
|
|
41,949 |
|
|
|
7,271 |
|
Balance
at end of period |
$ |
78,224 |
|
|
$ |
82,320 |
|
|
$ |
86,784 |
|
|
$ |
94,120 |
|
|
$ |
98,097 |
|
|
$ |
104,638 |
|
|
$ |
98,200 |
|
|
$ |
102,264 |
|
Selected
Ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
interest margin – FTE(1) |
|
4.88 |
% |
|
|
4.99 |
% |
|
|
4.84 |
% |
|
|
4.72 |
% |
|
|
4.69 |
% |
|
|
4.66 |
% |
|
|
4.47 |
% |
|
|
4.55 |
% |
Efficiency ratio |
|
35.03 |
|
|
|
35.32 |
|
|
|
34.38 |
|
|
|
34.82 |
|
|
|
37.88 |
|
|
|
35.19 |
|
|
|
41.87 |
|
|
|
36.9 |
|
Net
charge-offs to average non-purchased loans(1) (2) |
|
0.05 |
|
|
|
0.03 |
|
|
|
0.08 |
|
|
|
0.08 |
|
|
|
0.04 |
|
|
|
0.05 |
|
|
|
1.32 |
|
|
|
0.06 |
|
Net
charge-offs to average total loans(1) |
|
0.09 |
|
|
|
0.05 |
|
|
|
0.09 |
|
|
|
0.05 |
|
|
|
0.04 |
|
|
|
0.07 |
|
|
|
1.14 |
|
|
|
0.07 |
|
Nonperforming loans to total loans(3) |
|
0.11 |
|
|
|
0.11 |
|
|
|
0.11 |
|
|
|
0.1 |
|
|
|
0.09 |
|
|
|
0.1 |
|
|
|
0.23 |
|
|
|
0.23 |
|
Nonperforming assets to total assets(3) |
|
0.25 |
|
|
|
0.23 |
|
|
|
0.2 |
|
|
|
0.18 |
|
|
|
0.16 |
|
|
|
0.15 |
|
|
|
0.23 |
|
|
|
0.23 |
|
Allowance
for loan losses to total non-purchased loans(4) |
|
0.75 |
|
|
|
0.73 |
|
|
|
0.71 |
|
|
|
0.73 |
|
|
|
0.71 |
|
|
|
0.73 |
|
|
|
0.67 |
|
|
|
0.67 |
|
Loans
past due 30 days or more, including past due
non-accrual loans, to total loans(3) |
|
0.16 |
|
|
|
0.15 |
|
|
|
0.12 |
|
|
|
0.15 |
|
|
|
0.14 |
|
|
|
0.12 |
|
|
|
0.17 |
|
|
|
0.28 |
|
|
|
(1)Ratios for interim periods annualized based on actual
days.(2)Excludes purchased loans and net charge-offs related to
such loans.(3)Excludes purchased loans, except for their inclusion
in total assets.(4)Excludes purchased loans and any allowance for
such loans. |
|
|
|
Bank OZK |
|
Average Consolidated Balance Sheets and Net
Interest Analysis – FTE |
|
Unaudited |
|
|
|
|
Three Months Ended December 31, |
|
|
Year Ended December 31, |
|
|
2018 |
|
|
2017 |
|
|
2018 |
|
|
2017 |
|
|
Average |
|
Income/ |
Yield/ |
|
|
Average |
|
Income/ |
|
Yield/ |
|
|
Average |
|
Income/ |
|
Yield/ |
|
|
Average |
|
Income/ |
|
Yield/ |
|
Balance |
Expense |
Rate |
Balance |
Expense |
Rate |
Balance |
Expense |
Rate |
Balance |
Expense |
Rate |
|
|
|
|
(Dollars in thousands) |
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
earning deposits and federal funds sold |
$ |
102,931 |
|
$ |
590 |
|
2.27 |
% |
|
$ |
56,500 |
|
$ |
268 |
|
|
1.88 |
% |
|
$ |
160,148 |
|
$ |
3,039 |
|
|
1.9 |
% |
|
$ |
81,504 |
|
$ |
656 |
|
|
0.81 |
% |
Investment securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable |
|
2,335,512 |
|
|
14,642 |
|
2.49 |
|
|
|
1,818,633 |
|
|
9,661 |
|
|
2.11 |
|
|
|
2,143,455 |
|
|
50,021 |
|
|
2.33 |
|
|
|
1,158,519 |
|
|
25,460 |
|
|
2.2 |
|
Tax-exempt – FTE |
|
516,512 |
|
|
4,988 |
|
3.83 |
|
|
|
577,614 |
|
|
6,680 |
|
|
4.59 |
|
|
|
537,616 |
|
|
20,497 |
|
|
3.81 |
|
|
|
714,329 |
|
|
34,508 |
|
|
4.83 |
|
Non-purchased loans – FTE |
|
14,874,156 |
|
|
237,615 |
|
6.34 |
|
|
|
12,293,725 |
|
|
178,638 |
|
|
5.76 |
|
|
|
14,040,952 |
|
|
858,466 |
|
|
6.11 |
|
|
|
10,979,369 |
|
|
607,925 |
|
|
5.54 |
|
Purchased
loans |
|
2,170,489 |
|
|
35,453 |
|
6.48 |
|
|
|
3,528,823 |
|
|
56,303 |
|
|
6.33 |
|
|
|
2,633,271 |
|
|
173,465 |
|
|
6.59 |
|
|
|
4,175,146 |
|
|
276,499 |
|
|
6.62 |
|
Total
earning assets – FTE |
|
19,999,600 |
|
|
293,288 |
|
5.82 |
|
|
|
18,275,295 |
|
|
251,550 |
|
|
5.46 |
|
|
|
19,515,442 |
|
|
1,105,488 |
|
|
5.66 |
|
|
|
17,108,867 |
|
|
945,048 |
|
|
5.52 |
|
Non-interest earning
assets |
|
2,319,305 |
|
|
|
|
|
|
|
|
2,345,373 |
|
|
|
|
|
|
|
|
|
2,395,813 |
|
|
|
|
|
|
|
|
|
2,545,797 |
|
|
|
|
|
|
|
Total
assets |
$ |
22,318,905 |
|
|
|
|
|
|
|
$ |
20,620,668 |
|
|
|
|
|
|
|
|
$ |
21,911,255 |
|
|
|
|
|
|
|
|
$ |
19,654,664 |
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’
EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Savings
and interest bearing transaction |
$ |
9,594,919 |
|
$ |
33,200 |
|
1.37 |
% |
|
$ |
9,409,297 |
|
$ |
18,052 |
|
|
0.76 |
% |
|
$ |
9,983,075 |
|
$ |
118,771 |
|
|
1.19 |
% |
|
$ |
8,587,404 |
|
$ |
53,496 |
|
|
0.62 |
% |
Time
deposits of $100 or more |
|
3,204,627 |
|
|
14,595 |
|
1.81 |
|
|
|
3,043,311 |
|
|
8,218 |
|
|
1.07 |
|
|
|
3,183,108 |
|
|
47,691 |
|
|
1.5 |
|
|
|
3,164,843 |
|
|
31,222 |
|
|
0.99 |
|
Other
time deposits |
|
2,124,920 |
|
|
8,813 |
|
1.65 |
|
|
|
1,452,325 |
|
|
2,880 |
|
|
0.79 |
|
|
|
1,651,960 |
|
|
20,155 |
|
|
1.22 |
|
|
|
1,560,035 |
|
|
11,365 |
|
|
0.73 |
|
Total
interest bearing deposits |
|
14,924,466 |
|
|
56,608 |
|
1.5 |
|
|
|
13,904,933 |
|
|
29,150 |
|
|
0.83 |
|
|
|
14,818,143 |
|
|
186,617 |
|
|
1.26 |
|
|
|
13,312,282 |
|
|
96,083 |
|
|
0.72 |
|
Repurchase agreements with customers |
|
36,680 |
|
|
26 |
|
0.29 |
|
|
|
74,233 |
|
|
38 |
|
|
0.21 |
|
|
|
101,682 |
|
|
785 |
|
|
0.77 |
|
|
|
75,915 |
|
|
132 |
|
|
0.17 |
|
Other
borrowings |
|
400,874 |
|
|
2,193 |
|
2.17 |
|
|
|
124,340 |
|
|
574 |
|
|
1.83 |
|
|
|
166,937 |
|
|
3,017 |
|
|
1.81 |
|
|
|
62,988 |
|
|
1,305 |
|
|
2.07 |
|
Subordinated notes |
|
223,230 |
|
|
3,216 |
|
5.71 |
|
|
|
222,846 |
|
|
3,190 |
|
|
5.68 |
|
|
|
223,089 |
|
|
12,757 |
|
|
5.72 |
|
|
|
222,705 |
|
|
12,620 |
|
|
5.67 |
|
Subordinated debentures |
|
119,284 |
|
|
1,644 |
|
5.47 |
|
|
|
118,723 |
|
|
1,317 |
|
|
4.4 |
|
|
|
119,076 |
|
|
6,211 |
|
|
5.22 |
|
|
|
118,515 |
|
|
5,024 |
|
|
4.24 |
|
Total
interest bearing liabilities |
|
15,704,534 |
|
|
63,687 |
|
1.61 |
|
|
|
14,445,075 |
|
|
34,269 |
|
|
0.94 |
|
|
|
15,428,927 |
|
|
209,387 |
|
|
1.36 |
|
|
|
13,792,405 |
|
|
115,164 |
|
|
0.83 |
|
Non-interest bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest bearing deposits |
|
2,712,858 |
|
|
|
|
|
|
|
|
2,729,090 |
|
|
|
|
|
|
|
|
|
2,695,623 |
|
|
|
|
|
|
|
|
|
2,652,895 |
|
|
|
|
|
|
|
Other
non-interest bearing liabilities |
|
206,434 |
|
|
|
|
|
|
|
|
77,588 |
|
|
|
|
|
|
|
|
|
185,035 |
|
|
|
|
|
|
|
|
|
78,684 |
|
|
|
|
|
|
|
Total
liabilities |
|
18,623,826 |
|
|
|
|
|
|
|
|
17,251,753 |
|
|
|
|
|
|
|
|
|
18,309,585 |
|
|
|
|
|
|
|
|
|
16,523,984 |
|
|
|
|
|
|
|
Common stockholders’
equity |
|
3,692,044 |
|
|
|
|
|
|
|
|
3,365,848 |
|
|
|
|
|
|
|
|
|
3,598,628 |
|
|
|
|
|
|
|
|
|
3,127,576 |
|
|
|
|
|
|
|
Noncontrolling
interest |
|
3,035 |
|
|
|
|
|
|
|
|
3,067 |
|
|
|
|
|
|
|
|
|
3,042 |
|
|
|
|
|
|
|
|
|
3,104 |
|
|
|
|
|
|
|
Total
liabilities and stockholders’ equity |
$ |
22,318,905 |
|
|
|
|
|
|
|
$ |
20,620,668 |
|
|
|
|
|
|
|
|
$ |
21,911,255 |
|
|
|
|
|
|
|
|
$ |
19,654,664 |
|
|
|
|
|
|
|
Net interest income –
FTE |
|
|
|
$ |
229,601 |
|
|
|
|
|
|
|
$ |
217,281 |
|
|
|
|
|
|
|
|
$ |
896,101 |
|
|
|
|
|
|
|
|
$ |
829,884 |
|
|
|
|
Net interest margin –
FTE |
|
|
|
|
|
|
4.55 |
% |
|
|
|
|
|
|
|
|
4.72 |
% |
|
|
|
|
|
|
|
|
4.59 |
% |
|
|
|
|
|
|
|
|
4.85 |
% |
|
|
Bank OZK |
|
Reconciliation of Non-GAAP Financial
Measures |
|
|
|
Calculation of Average Tangible
Common |
|
Stockholders’ Equity and the Annualized Return
on |
|
Average Tangible Common Stockholders’
Equity |
|
Unaudited |
|
|
|
|
Three Months Ended |
|
|
Year Ended |
|
December 31, |
December 31, |
|
2018 |
|
|
2017 |
|
|
2018 |
|
|
2017 |
|
|
|
|
|
(Dollars in thousands) |
|
Net income available to
common stockholders |
$ |
115,031 |
|
|
$ |
146,164 |
|
|
$ |
417,106 |
|
|
$ |
421,891 |
|
Average common
stockholders’ equity before noncontrolling interest |
$ |
3,692,044 |
|
|
$ |
3,365,848 |
|
|
$ |
3,598,628 |
|
|
$ |
3,127,576 |
|
Less average intangible
assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Goodwill |
|
(660,789 |
) |
|
|
(660,789 |
) |
|
|
(660,789 |
) |
|
|
(660,632 |
) |
Core
deposit and other intangibles, net of accumulated
amortization |
|
(37,654 |
) |
|
|
(49,927 |
) |
|
|
(42,315 |
) |
|
|
(54,702 |
) |
Total
average intangibles |
|
(698,443 |
) |
|
|
(710,716 |
) |
|
|
(703,104 |
) |
|
|
(715,334 |
) |
Average tangible common
stockholders’ equity |
$ |
2,993,601 |
|
|
$ |
2,655,132 |
|
|
$ |
2,895,524 |
|
|
$ |
2,412,242 |
|
Return on average
common stockholders’ equity(1) |
|
12.36 |
% |
|
|
17.23 |
% |
|
|
11.59 |
% |
|
|
13.49 |
% |
Return on average
tangible common stockholders’ equity(1) |
|
15.24 |
% |
|
|
21.84 |
% |
|
|
14.41 |
% |
|
|
17.49 |
% |
|
(1)Ratios for interim periods annualized based on actual
days. |
|
|
Calculation of Total Tangible
Common |
|
Stockholders’ Equity and Tangible |
|
Book Value per Common Share |
|
Unaudited |
|
|
|
|
December 31, |
|
|
2018 |
|
|
2017 |
|
|
|
|
|
(In thousands, except per share amounts) |
|
Total common
stockholders’ equity before noncontrolling interest |
$ |
3,770,330 |
|
|
$ |
3,460,728 |
|
Less intangible
assets: |
|
|
|
|
|
|
|
Goodwill |
|
(660,789 |
) |
|
|
(660,789 |
) |
Core
deposit and other intangible assets, net of accumulated
amortization |
|
(35,672 |
) |
|
|
(48,251 |
) |
Total
intangibles |
|
(696,461 |
) |
|
|
(709,040 |
) |
Total
tangible common stockholders’ equity |
$ |
3,073,869 |
|
|
$ |
2,751,688 |
|
Shares of common stock
outstanding |
|
128,611 |
|
|
|
128,288 |
|
Book value per common
share |
$ |
29.32 |
|
|
$ |
26.98 |
|
Tangible book value per
common share |
$ |
23.9 |
|
|
$ |
21.45 |
|
|
|
|
Calculation of Total Tangible Common
Stockholders’ |
|
Equity and the Ratio of Total Tangible
Common |
|
Stockholders’ Equity to Total Tangible
Assets |
|
Unaudited |
|
|
|
|
December 31, |
|
|
2018 |
|
|
2017 |
|
|
|
|
|
(Dollars in thousands) |
|
Total common
stockholders’ equity before noncontrolling interest |
$ |
3,770,330 |
|
|
$ |
3,460,728 |
|
Less intangible
assets: |
|
|
|
|
|
|
|
Goodwill |
|
(660,789 |
) |
|
|
(660,789 |
) |
Core
deposit and other intangible assets, net of accumulated
amortization |
|
(35,672 |
) |
|
|
(48,251 |
) |
Total
intangibles |
|
(696,461 |
) |
|
|
(709,040 |
) |
Total
tangible common stockholders’ equity |
$ |
3,073,869 |
|
|
$ |
2,751,688 |
|
Total assets |
$ |
22,388,030 |
|
|
$ |
21,275,647 |
|
Less intangible
assets: |
|
|
|
|
|
|
|
Goodwill |
|
(660,789 |
) |
|
|
(660,789 |
) |
Core
deposit and other intangible assets, net of accumulated
amortization |
|
(35,672 |
) |
|
|
(48,251 |
) |
Total
intangibles |
|
(696,461 |
) |
|
|
(709,040 |
) |
Total
tangible assets |
$ |
21,691,569 |
|
|
$ |
20,566,607 |
|
Ratio of total common
stockholders’ equity to total assets |
|
16.84 |
% |
|
|
16.27 |
% |
Ratio of total tangible
common stockholders’ equity to total |
|
14.17 |
% |
|
|
13.38 |
% |
tangible
assets |
|
|
|
Media Contact: |
Susan Blair (501)
978-2217 |
Investor Contact: |
Tim Hicks (501)
978-2336 |
Bank OZK (NASDAQ:OZK)
Historical Stock Chart
From Mar 2024 to Apr 2024
Bank OZK (NASDAQ:OZK)
Historical Stock Chart
From Apr 2023 to Apr 2024