Bank OZK (the “Bank”) (Nasdaq: OZK) today announced that net income
for the first quarter of 2021 was a record $148.4 million compared
to $11.9 million for the first quarter of 2020. Diluted earnings
per common share for the first quarter of 2021 were $1.14 compared
to $0.09 for the first quarter of 2020.
As a result of improving economic conditions, management
recorded negative provision for credit losses of $31.6 million
during the first quarter of 2021, reducing the Bank’s total
allowance for credit losses (“ACL”) from $377.3 million at December
31, 2020 to $342.3 million at March 31, 2021. The Bank’s provision
for credit losses was $117.7 million during the first quarter of
2020, reflecting significant economic uncertainty at that time. The
Bank’s results for the first quarter of 2021 also 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. The Bank had no gains from branch sales and had
$0.6 million of tax-exempt BOLI death benefits during the first
quarter of 2020.
Pre-tax pre-provision net revenue (“PPNR”) was $160.7 million
for the first quarter of 2021, a 19.9% increase from $134.0 million
for the first quarter of 2020, but a decrease of 1.3% from $162.9
million for the fourth quarter 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 first quarter of 2021 were 2.23%, 13.97% and 16.57%,
respectively, compared to 0.20%, 1.16% and 1.39%, respectively, for
the first quarter 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 excellent results for the first quarter of
2021, including record quarterly net income, strong net interest
income, continued improvement in our core spread, excellent asset
quality and an efficiency ratio among the best in the industry. Our
combination of strong earnings, robust capital and an exceptional
team have us well positioned for the future.”
KEY BALANCE SHEET METRICS
Total loans were $18.72 billion at March 31, 2021, a 2.7%
increase from $18.23 billion at March 31, 2020, but a decrease of
2.6% from $19.21 billion at December 31, 2020. Non-purchased loans
were $17.98 billion at March 31, 2021, a 5.6% increase from $17.03
billion at March 31, 2020, but a decrease of 2.3% from $18.40
billion at December 31, 2020. Purchased loans, which consist of
loans acquired in previous acquisitions, were $0.74 billion at
March 31, 2021, a 38.6% decrease from $1.20 billion at March 31,
2020.
Deposits were $21.30 billion at March 31, 2021, a 13.2% increase
from $18.81 billion at March 31, 2020, but a decrease of 0.7% from
$21.45 billion at December 31, 2020. Total assets were $27.28
billion at March 31, 2021, an 11.0% increase from $24.57 billion at
March 31, 2020.
Common stockholders’ equity was $4.38 billion at March 31, 2021,
a 7.5% increase from $4.08 billion at March 31, 2020. Tangible
common stockholders’ equity was $3.71 billion at March 31, 2021, a
9.1% increase from $3.40 billion at March 31, 2020. Book value per
common share was $33.79 at March 31, 2021, a 7.0% increase from
$31.57 at March 31, 2020. Tangible book value per common share was
$28.60 at March 31, 2021, an 8.7% increase from $26.30 at March 31,
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 16.07% at March 31, 2021 compared to 16.62% at March 31,
2020. Its ratio of total tangible common stockholders’ equity to
total tangible assets was 13.94% at March 31, 2021 compared to
14.24% at March 31, 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.
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 April 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 4472527. 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 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; the potential impact of the
proposed 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 more than 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.
Investor Contact: |
|
Tim Hicks (501)
978-2336 |
Media Contact: |
|
Susan Blair (501)
978-2217 |
Bank OZKConsolidated
Balance SheetsUnaudited
|
|
March 31, |
|
|
December 31, |
|
|
|
2021 |
|
|
2020 |
|
|
|
(Dollars in thousands, except per share amounts) |
|
ASSETS |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
2,216,336 |
|
|
$ |
2,393,662 |
|
Investment securities ―
available for sale ("AFS") |
|
|
4,162,479 |
|
|
|
3,405,351 |
|
Federal Home Loan Bank of
Dallas and other bankers' bank stocks |
|
|
38,578 |
|
|
|
38,486 |
|
Non-purchased loans |
|
|
17,979,435 |
|
|
|
18,401,495 |
|
Purchased loans |
|
|
735,630 |
|
|
|
807,673 |
|
Allowance for loan losses |
|
|
(268,077 |
) |
|
|
(295,824 |
) |
Net loans |
|
|
18,446,988 |
|
|
|
18,913,344 |
|
Premises and equipment,
net |
|
|
729,433 |
|
|
|
738,842 |
|
Foreclosed assets |
|
|
8,436 |
|
|
|
11,085 |
|
Accrued interest
receivable |
|
|
94,265 |
|
|
|
88,077 |
|
Bank owned life insurance
(“BOLI”) |
|
|
761,680 |
|
|
|
758,071 |
|
Goodwill and other intangible
assets, net |
|
|
673,728 |
|
|
|
675,458 |
|
Other, net |
|
|
144,969 |
|
|
|
140,220 |
|
Total assets |
|
$ |
27,276,892 |
|
|
$ |
27,162,596 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
Demand non-interest bearing |
|
$ |
4,196,603 |
|
|
$ |
3,996,546 |
|
Savings and interest bearing transaction |
|
|
8,529,229 |
|
|
|
8,160,982 |
|
Time |
|
|
8,570,610 |
|
|
|
9,292,828 |
|
Total deposits |
|
|
21,296,442 |
|
|
|
21,450,356 |
|
Repurchase agreements with
customers |
|
|
5,936 |
|
|
|
8,013 |
|
Other borrowings |
|
|
750,361 |
|
|
|
750,928 |
|
Subordinated notes |
|
|
224,141 |
|
|
|
224,047 |
|
Subordinated debentures |
|
|
120,613 |
|
|
|
120,475 |
|
Reserve for losses on unfunded
loan commitments |
|
|
74,230 |
|
|
|
81,481 |
|
Accrued interest payable and
other liabilities |
|
|
418,860 |
|
|
|
251,940 |
|
Total liabilities |
|
|
22,890,583 |
|
|
|
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 March 31, 2021 or December 31,
2020 |
|
|
— |
|
|
|
— |
|
Common stock; $0.01 par value; 300,000,000 shares authorized;
129,718,906 and 129,350,448 shares issued and outstanding at March
31, 2021 and December 31, 2020, respectively |
|
|
1,297 |
|
|
|
1,294 |
|
Additional paid-in capital |
|
|
2,272,046 |
|
|
|
2,265,850 |
|
Retained earnings |
|
|
2,059,398 |
|
|
|
1,946,875 |
|
Accumulated other comprehensive income |
|
|
50,464 |
|
|
|
58,252 |
|
Total stockholders’ equity before noncontrolling interest |
|
|
4,383,205 |
|
|
|
4,272,271 |
|
Noncontrolling interest |
|
|
3,104 |
|
|
|
3,085 |
|
Total stockholders’ equity |
|
|
4,386,309 |
|
|
|
4,275,356 |
|
Total liabilities and stockholders’ equity |
|
$ |
27,276,892 |
|
|
$ |
27,162,596 |
|
Bank OZKConsolidated
Statements of IncomeUnaudited
|
Three Months Ended March 31, |
|
|
2021 |
|
|
2020 |
|
|
(Dollars in thousands, except per share amounts) |
|
Interest income: |
|
|
|
|
|
|
|
Non-purchased loans |
$ |
239,827 |
|
|
$ |
231,853 |
|
Purchased loans |
|
11,935 |
|
|
|
21,387 |
|
Investment securities: |
|
|
|
|
|
|
|
Taxable |
|
8,083 |
|
|
|
10,760 |
|
Tax-exempt |
|
3,681 |
|
|
|
3,597 |
|
Deposits with banks and federal funds sold |
|
538 |
|
|
|
4,376 |
|
Total interest income |
|
264,064 |
|
|
|
271,973 |
|
|
|
|
|
|
|
|
|
Interest expense: |
|
|
|
|
|
|
|
Deposits |
|
24,350 |
|
|
|
57,682 |
|
Repurchase agreements with customers |
|
4 |
|
|
|
6 |
|
Other borrowings |
|
986 |
|
|
|
50 |
|
Subordinated notes |
|
3,146 |
|
|
|
3,172 |
|
Subordinated debentures |
|
942 |
|
|
|
1,288 |
|
Total interest expense |
|
29,428 |
|
|
|
62,198 |
|
|
|
|
|
|
|
|
|
Net interest income |
|
234,636 |
|
|
|
209,775 |
|
Provision for credit
losses |
|
(31,559 |
) |
|
|
117,663 |
|
Net interest income after
provision for credit losses |
|
266,195 |
|
|
|
92,112 |
|
|
|
|
|
|
|
|
|
Non-interest income: |
|
|
|
|
|
|
|
Service charges on deposit accounts |
|
9,665 |
|
|
|
10,009 |
|
Trust income |
|
2,206 |
|
|
|
1,939 |
|
BOLI income: |
|
|
|
|
|
|
|
Increase in cash surrender value |
|
4,881 |
|
|
|
5,067 |
|
Death benefits |
|
1,409 |
|
|
|
608 |
|
Loan service, maintenance and other fees |
|
3,551 |
|
|
|
3,716 |
|
Gains on sales of other assets |
|
5,828 |
|
|
|
161 |
|
Net gains on investment securities |
|
— |
|
|
|
2,223 |
|
Other |
|
4,577 |
|
|
|
3,957 |
|
Total non-interest income |
|
32,117 |
|
|
|
27,680 |
|
|
|
|
|
|
|
|
|
Non-interest expense: |
|
|
|
|
|
|
|
Salaries and employee benefits |
|
53,645 |
|
|
|
51,473 |
|
Net occupancy and equipment |
|
16,468 |
|
|
|
15,330 |
|
Other operating expenses |
|
35,946 |
|
|
|
36,622 |
|
Total non-interest expense |
|
106,059 |
|
|
|
103,425 |
|
|
|
|
|
|
|
|
|
Income before taxes |
|
192,253 |
|
|
|
16,367 |
|
Provision for income
taxes |
|
43,818 |
|
|
|
4,509 |
|
Net income |
|
148,435 |
|
|
|
11,858 |
|
Earnings attributable to
noncontrolling interest |
|
(19 |
) |
|
|
8 |
|
Net income available to common
stockholders |
$ |
148,416 |
|
|
$ |
11,866 |
|
|
|
|
|
|
|
|
|
Basic earnings per common
share |
$ |
1.15 |
|
|
$ |
0.09 |
|
|
|
|
|
|
|
|
|
Diluted earnings per common
share |
$ |
1.14 |
|
|
$ |
0.09 |
|
Bank OZKConsolidated
Statements of Stockholders’ EquityUnaudited
|
|
CommonStock |
|
|
AdditionalPaid-InCapital |
|
|
RetainedEarnings |
|
|
AccumulatedOtherComprehensiveIncome |
|
|
Non-ControllingInterest |
|
|
Total |
|
|
|
(Dollars in thousands, except per share amounts) |
|
Three months ended March 31, 2021: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balances – December 31,
2020 |
|
$ |
1,294 |
|
|
$ |
2,265,850 |
|
|
$ |
1,946,875 |
|
|
$ |
58,252 |
|
|
$ |
3,085 |
|
|
$ |
4,275,356 |
|
Net income |
|
|
— |
|
|
|
— |
|
|
|
148,435 |
|
|
|
— |
|
|
|
— |
|
|
|
148,435 |
|
Earnings attributable to
noncontrolling interest |
|
|
— |
|
|
|
— |
|
|
|
(19 |
) |
|
|
— |
|
|
|
19 |
|
|
|
— |
|
Total other comprehensive
loss |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(7,788 |
) |
|
|
— |
|
|
|
(7,788 |
) |
Common stock dividends,
$0.2775 per share |
|
|
— |
|
|
|
— |
|
|
|
(35,893 |
) |
|
|
— |
|
|
|
— |
|
|
|
(35,893 |
) |
Issuance of 128,100 shares of
common stock for exercise of stock options |
|
|
1 |
|
|
|
4,492 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
4,493 |
|
Issuance of 312,503 shares of
unvested restricted common stock |
|
|
3 |
|
|
|
(3 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Repurchase and cancellation of
55,740 shares of common stock |
|
|
(1 |
) |
|
|
(1,970 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1,971 |
) |
Stock-based compensation
expense |
|
|
— |
|
|
|
3,677 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
3,677 |
|
Forfeitures of 16,405 shares
of unvested restricted common stock |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Balances – March 31, 2021 |
|
$ |
1,297 |
|
|
$ |
2,272,046 |
|
|
$ |
2,059,398 |
|
|
$ |
50,464 |
|
|
$ |
3,104 |
|
|
$ |
4,386,309 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
March 31, 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 |
|
|
— |
|
|
|
— |
|
|
|
11,858 |
|
|
|
— |
|
|
|
— |
|
|
|
11,858 |
|
Earnings attributable to
noncontrolling interest |
|
|
— |
|
|
|
— |
|
|
|
8 |
|
|
|
— |
|
|
|
(8 |
) |
|
|
— |
|
Total other comprehensive
income |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
27,633 |
|
|
|
— |
|
|
|
27,633 |
|
Common stock dividends, $0.26
per share |
|
|
— |
|
|
|
— |
|
|
|
(33,527 |
) |
|
|
— |
|
|
|
— |
|
|
|
(33,527 |
) |
Issuance of 4,300 shares of
common stock for exercise of stock options |
|
|
— |
|
|
|
45 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
45 |
|
Issuance of 447,085 shares of
unvested restricted common stock |
|
|
4 |
|
|
|
(4 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Repurchase and cancellation of
61,873 shares of common stock |
|
|
— |
|
|
|
(1,853 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1,853 |
) |
Stock-based compensation
expense |
|
|
— |
|
|
|
3,979 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
3,979 |
|
Forfeitures of 16,101 shares
of unvested restricted common stock |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Balances – March 31, 2020 |
|
$ |
1,293 |
|
|
$ |
2,253,991 |
|
|
$ |
1,772,978 |
|
|
$ |
54,888 |
|
|
$ |
3,109 |
|
|
$ |
4,086,259 |
|
Bank OZKSummary of
Non-Interest ExpenseUnaudited
|
|
Three Months EndedMarch 31, |
|
|
|
2021 |
|
|
2020 |
|
|
|
(Dollars in thousands) |
|
Salaries and employee benefits |
|
$ |
53,645 |
|
|
$ |
51,473 |
|
Net occupancy and
equipment |
|
|
16,468 |
|
|
|
15,330 |
|
Other operating expenses: |
|
|
|
|
|
|
|
|
Professional and outside services |
|
|
6,326 |
|
|
|
6,764 |
|
Software and data processing |
|
|
5,792 |
|
|
|
4,974 |
|
Deposit insurance and assessments |
|
|
3,520 |
|
|
|
3,420 |
|
Telecommunication services |
|
|
2,232 |
|
|
|
2,177 |
|
Postage and supplies |
|
|
1,645 |
|
|
|
2,053 |
|
Writedowns of foreclosed and other assets |
|
|
1,363 |
|
|
|
879 |
|
ATM expense |
|
|
1,283 |
|
|
|
1,160 |
|
Travel and meals |
|
|
774 |
|
|
|
2,102 |
|
Loan collection and repossession expense |
|
|
509 |
|
|
|
694 |
|
Advertising and public relations |
|
|
308 |
|
|
|
1,703 |
|
Amortization of intangibles |
|
|
1,730 |
|
|
|
2,795 |
|
Amortization of CRA and tax credit investments |
|
|
4,125 |
|
|
|
2,740 |
|
Other |
|
|
6,339 |
|
|
|
5,161 |
|
Total non-interest expense |
|
$ |
106,059 |
|
|
$ |
103,425 |
|
Bank OZKSummary of Total
Loans OutstandingUnaudited
|
|
March 31, 2021 |
|
|
December 31, 2020 |
|
|
|
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential 1-4 family |
|
$ |
869,585 |
|
|
|
4.6 |
% |
|
$ |
911,115 |
|
|
|
4.7 |
% |
Non-farm/non-residential |
|
|
4,406,692 |
|
|
|
23.5 |
|
|
|
4,213,636 |
|
|
|
21.9 |
|
Construction/land development |
|
|
7,733,670 |
|
|
|
41.3 |
|
|
|
8,046,978 |
|
|
|
41.9 |
|
Agricultural |
|
|
212,681 |
|
|
|
1.1 |
|
|
|
204,868 |
|
|
|
1.1 |
|
Multifamily residential |
|
|
797,847 |
|
|
|
4.3 |
|
|
|
856,297 |
|
|
|
4.5 |
|
Total real estate |
|
|
14,020,475 |
|
|
|
74.8 |
|
|
|
14,232,894 |
|
|
|
74.1 |
|
Commercial and industrial |
|
|
790,568 |
|
|
|
4.2 |
|
|
|
842,206 |
|
|
|
4.4 |
|
Consumer |
|
|
2,275,011 |
|
|
|
12.2 |
|
|
|
2,393,964 |
|
|
|
12.5 |
|
Other |
|
|
1,629,011 |
|
|
|
8.8 |
|
|
|
1,740,104 |
|
|
|
9.0 |
|
Total loans |
|
|
18,715,065 |
|
|
|
100.0 |
% |
|
|
19,209,168 |
|
|
|
100.0 |
% |
Allowance for loan losses |
|
|
(268,077 |
) |
|
|
|
|
|
|
(295,824 |
) |
|
|
|
|
Net loans |
|
$ |
18,446,988 |
|
|
|
|
|
|
$ |
18,913,344 |
|
|
|
|
|
Bank OZKAllowance for
Credit LossesUnaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for Loan Losses |
|
|
Reserve for Losses on Unfunded Loan
Commitments |
|
|
Total Allowance for Credit Losses |
|
|
|
(Dollars in thousands) |
|
Three months ended
March 31, 2021: |
|
|
|
|
|
|
|
|
|
|
|
|
Balances – December 31,
2020 |
|
$ |
295,824 |
|
|
$ |
81,481 |
|
|
$ |
377,305 |
|
Net charge-offs |
|
|
(3,439 |
) |
|
|
— |
|
|
|
(3,439 |
) |
Provision |
|
|
(24,308 |
) |
|
|
(7,251 |
) |
|
|
(31,559 |
) |
Balances – March 31, 2021 |
|
$ |
268,077 |
|
|
$ |
74,230 |
|
|
$ |
342,307 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
March 31, 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 |
|
|
(4,291 |
) |
|
|
— |
|
|
|
(4,291 |
) |
Provision |
|
|
94,915 |
|
|
|
22,748 |
|
|
|
117,663 |
|
Balances – March 31, 2020 |
|
$ |
238,737 |
|
|
$ |
77,672 |
|
|
$ |
316,409 |
|
Bank OZKSummary of
Deposits – By Account TypeUnaudited
|
|
March 31, 2021 |
|
|
December 31, 2020 |
|
|
|
(Dollars in thousands) |
|
Non-interest bearing |
|
$ |
4,196,603 |
|
|
|
19.7 |
% |
|
$ |
3,996,546 |
|
|
|
18.6 |
% |
Interest bearing: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transaction (NOW) |
|
|
3,253,715 |
|
|
|
15.3 |
|
|
|
3,124,007 |
|
|
|
14.6 |
|
Savings and money market |
|
|
5,275,514 |
|
|
|
24.8 |
|
|
|
5,036,975 |
|
|
|
23.5 |
|
Time deposits less than $100 |
|
|
2,657,568 |
|
|
|
12.5 |
|
|
|
3,075,845 |
|
|
|
14.3 |
|
Time deposits of $100 or more |
|
|
5,913,042 |
|
|
|
27.7 |
|
|
|
6,216,983 |
|
|
|
29.0 |
|
Total deposits |
|
$ |
21,296,442 |
|
|
|
100.0 |
% |
|
$ |
21,450,356 |
|
|
|
100.0 |
% |
Summary of Deposits – By Customer
TypeUnaudited
|
|
March 31, 2021 |
|
|
December 31, 2020 |
|
|
|
(Dollars in thousands) |
|
Consumer |
|
$ |
11,252,744 |
|
|
|
52.8 |
% |
|
$ |
11,165,603 |
|
|
|
52.1 |
% |
Commercial |
|
|
6,259,409 |
|
|
|
29.4 |
|
|
|
6,056,536 |
|
|
|
28.2 |
|
Public Funds |
|
|
2,048,909 |
|
|
|
9.6 |
|
|
|
2,111,971 |
|
|
|
9.8 |
|
Brokered |
|
|
1,210,155 |
|
|
|
5.7 |
|
|
|
1,600,116 |
|
|
|
7.5 |
|
Reciprocal |
|
|
525,225 |
|
|
|
2.5 |
|
|
|
516,130 |
|
|
|
2.4 |
|
Total deposits |
|
$ |
21,296,442 |
|
|
|
100.0 |
% |
|
$ |
21,450,356 |
|
|
|
100.0 |
% |
Bank OZKSelected
Consolidated Financial DataUnaudited
|
|
Three Months EndedMarch 31, |
|
|
|
2021 |
|
|
2020 |
|
|
% Change |
|
|
|
(Dollars in thousands, except per share amounts) |
|
Income statement data: |
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
$ |
234,636 |
|
|
$ |
209,775 |
|
|
|
11.9 |
% |
Provision for credit losses |
|
|
(31,559 |
) |
|
|
117,663 |
|
|
|
(126.8 |
) |
Non-interest income |
|
|
32,117 |
|
|
|
27,680 |
|
|
|
16.0 |
|
Non-interest expense |
|
|
106,059 |
|
|
|
103,425 |
|
|
|
2.5 |
|
Net income available to common stockholders |
|
|
148,416 |
|
|
|
11,866 |
|
|
|
1,150.8 |
|
Pre-tax pre-provision net revenue(1) |
|
|
160,694 |
|
|
|
134,030 |
|
|
|
19.9 |
|
Common share and per
common share data: |
|
|
|
|
|
|
|
|
|
|
|
|
Net income per share − diluted |
|
$ |
1.14 |
|
|
$ |
0.09 |
|
|
|
1,166.7 |
% |
Net income per share − basic |
|
|
1.15 |
|
|
|
0.09 |
|
|
|
1,177.8 |
|
Dividends per share |
|
|
0.2775 |
|
|
|
0.26 |
|
|
|
6.7 |
|
Book value per share |
|
|
33.79 |
|
|
|
31.57 |
|
|
|
7.0 |
|
Tangible book value per share(1) |
|
|
28.60 |
|
|
|
26.30 |
|
|
|
8.7 |
|
Weighted-average diluted shares outstanding (thousands) |
|
|
129,816 |
|
|
|
129,307 |
|
|
|
0.4 |
|
End of period shares outstanding (thousands) |
|
|
129,719 |
|
|
|
129,324 |
|
|
|
0.3 |
|
Balance sheet data at
period end: |
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
27,276,892 |
|
|
$ |
24,565,810 |
|
|
|
11.0 |
% |
Total loans |
|
|
18,715,065 |
|
|
|
18,228,204 |
|
|
|
2.7 |
|
Non-purchased loans |
|
|
17,979,435 |
|
|
|
17,030,378 |
|
|
|
5.6 |
|
Purchased loans |
|
|
735,630 |
|
|
|
1,197,826 |
|
|
|
(38.6 |
) |
Allowance for loan losses |
|
|
268,077 |
|
|
|
238,737 |
|
|
|
12.3 |
|
Foreclosed assets |
|
|
8,436 |
|
|
|
20,616 |
|
|
|
(59.1 |
) |
Investment securities − AFS |
|
|
4,162,479 |
|
|
|
2,816,556 |
|
|
|
47.8 |
|
Goodwill and other intangible assets, net |
|
|
673,728 |
|
|
|
681,747 |
|
|
|
(1.2 |
) |
Deposits |
|
|
21,296,442 |
|
|
|
18,809,190 |
|
|
|
13.2 |
|
Other borrowings |
|
|
750,361 |
|
|
|
1,051,353 |
|
|
|
(28.6 |
) |
Subordinated notes |
|
|
224,141 |
|
|
|
223,759 |
|
|
|
0.2 |
|
Subordinated debentures |
|
|
120,613 |
|
|
|
120,055 |
|
|
|
0.5 |
|
Unfunded balance of closed loans |
|
|
11,780,099 |
|
|
|
11,334,737 |
|
|
|
3.9 |
|
Reserve for losses on unfunded loan commitments |
|
|
74,230 |
|
|
|
77,672 |
|
|
|
(4.4 |
) |
Total common stockholders’ equity |
|
|
4,383,205 |
|
|
|
4,083,150 |
|
|
|
7.3 |
|
Net unrealized gains on investment securities AFS included in
common stockholders' equity |
|
|
50,464 |
|
|
|
54,888 |
|
|
|
|
|
Loan (including purchased loans) to deposit ratio |
|
|
87.88 |
% |
|
|
96.91 |
% |
|
|
|
|
Selected
ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
Return on average assets(2) |
|
|
2.23 |
% |
|
|
0.20 |
% |
|
|
|
|
Return on average common stockholders’ equity(2) |
|
|
13.97 |
|
|
|
1.16 |
|
|
|
|
|
Return on average tangible common stockholders’ equity(1) (2) |
|
|
16.57 |
|
|
|
1.39 |
|
|
|
|
|
Average common equity to total average assets |
|
|
15.93 |
|
|
|
17.31 |
|
|
|
|
|
Net interest margin – FTE(2) |
|
|
3.86 |
|
|
|
3.96 |
|
|
|
|
|
Efficiency ratio |
|
|
39.57 |
|
|
|
43.35 |
|
|
|
|
|
Net charge-offs to average non-purchased loans(2) (3) |
|
|
0.08 |
|
|
|
0.08 |
|
|
|
|
|
Net charge-offs to average total loans(2) |
|
|
0.07 |
|
|
|
0.10 |
|
|
|
|
|
Nonperforming loans to total loans(4) |
|
|
0.25 |
|
|
|
0.16 |
|
|
|
|
|
Nonperforming assets to total assets(4) |
|
|
0.19 |
|
|
|
0.19 |
|
|
|
|
|
Allowance for loan losses to total loans(5) |
|
|
1.43 |
|
|
|
1.31 |
|
|
|
|
|
Other
information: |
|
|
|
|
|
|
|
|
|
|
|
|
Non-accrual loans(4) |
|
$ |
43,059 |
|
|
$ |
25,681 |
|
|
|
|
|
Accruing loans − 90 days past due(4) |
|
|
— |
|
|
|
— |
|
|
|
|
|
Troubled and restructured non-purchased loans − accruing(4) |
|
|
1,380 |
|
|
|
757 |
|
|
|
|
|
(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)Unaudited
|
|
Three Months Ended |
|
|
|
March 31, |
|
|
December 31, |
|
|
|
|
|
|
|
2021 |
|
|
2020 |
|
|
% Change |
|
|
(Dollars in thousands, except per share amounts) |
|
Income statement data: |
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
$ |
234,636 |
|
|
$ |
237,600 |
|
|
|
(1.2 |
)% |
Provision for credit losses |
|
|
(31,559 |
) |
|
|
6,750 |
|
|
|
(567.5 |
) |
Non-interest income |
|
|
32,117 |
|
|
|
28,661 |
|
|
|
12.1 |
|
Non-interest expense |
|
|
106,059 |
|
|
|
103,394 |
|
|
|
2.6 |
|
Net income available to common stockholders |
|
|
148,416 |
|
|
|
120,513 |
|
|
|
23.2 |
|
Pre-tax pre-provision net revenue(1) |
|
|
160,694 |
|
|
|
162,867 |
|
|
|
(1.3 |
) |
Common share and per
common share data: |
|
|
|
|
|
|
|
|
|
|
|
|
Net income per share − diluted |
|
$ |
1.14 |
|
|
$ |
0.93 |
|
|
|
22.6 |
% |
Net income per share − basic |
|
|
1.15 |
|
|
|
0.93 |
|
|
|
23.7 |
|
Dividends per share |
|
|
0.2775 |
|
|
|
0.275 |
|
|
|
0.9 |
|
Book value per share |
|
|
33.79 |
|
|
|
33.03 |
|
|
|
2.3 |
|
Tangible book value per share(1) |
|
|
28.60 |
|
|
|
27.81 |
|
|
|
2.8 |
|
Weighted-average diluted shares outstanding (thousands) |
|
|
129,816 |
|
|
|
129,523 |
|
|
|
0.2 |
|
End of period shares outstanding (thousands) |
|
|
129,719 |
|
|
|
129,350 |
|
|
|
0.3 |
|
Balance sheet data at
period end: |
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
27,276,892 |
|
|
$ |
27,162,596 |
|
|
|
0.4 |
% |
Total loans |
|
|
18,715,065 |
|
|
|
19,209,168 |
|
|
|
(2.6 |
) |
Non-purchased loans |
|
|
17,979,435 |
|
|
|
18,401,495 |
|
|
|
(2.3 |
) |
Purchased loans |
|
|
735,630 |
|
|
|
807,673 |
|
|
|
(8.9 |
) |
Allowance for loan losses |
|
|
268,077 |
|
|
|
295,824 |
|
|
|
(9.4 |
) |
Foreclosed assets |
|
|
8,436 |
|
|
|
11,085 |
|
|
|
(23.9 |
) |
Investment securities − AFS |
|
|
4,162,479 |
|
|
|
3,405,351 |
|
|
|
22.2 |
|
Goodwill and other intangible assets, net |
|
|
673,728 |
|
|
|
675,458 |
|
|
|
(0.3 |
) |
Deposits |
|
|
21,296,442 |
|
|
|
21,450,356 |
|
|
|
(0.7 |
) |
Other borrowings |
|
|
750,361 |
|
|
|
750,928 |
|
|
|
(0.1 |
) |
Subordinated notes |
|
|
224,141 |
|
|
|
224,047 |
|
|
|
0.1 |
|
Subordinated debentures |
|
|
120,613 |
|
|
|
120,475 |
|
|
|
0.1 |
|
Unfunded balance of closed loans |
|
|
11,780,099 |
|
|
|
11,847,117 |
|
|
|
(0.6 |
) |
Reserve for losses on unfunded loan commitments |
|
|
74,230 |
|
|
|
81,481 |
|
|
|
(8.9 |
) |
Total common stockholders’ equity |
|
|
4,383,205 |
|
|
|
4,272,271 |
|
|
|
2.6 |
|
Net unrealized gains on investment securities AFS included in
common stockholders' equity |
|
|
50,464 |
|
|
|
58,252 |
|
|
|
|
|
Loan (including purchased loans) to deposit ratio |
|
|
87.88 |
% |
|
|
89.55 |
% |
|
|
|
|
Selected
ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
Return on average assets(2) |
|
|
2.23 |
% |
|
|
1.79 |
% |
|
|
|
|
Return on average common stockholders’ equity(2) |
|
|
13.97 |
|
|
|
11.36 |
|
|
|
|
|
Return on average tangible common stockholders’ equity(1) (2) |
|
|
16.57 |
|
|
|
13.53 |
|
|
|
|
|
Average common equity to total average assets |
|
|
15.93 |
|
|
|
15.74 |
|
|
|
|
|
Net interest margin – FTE(2) |
|
|
3.86 |
|
|
|
3.88 |
|
|
|
|
|
Efficiency ratio |
|
|
39.57 |
|
|
|
38.61 |
|
|
|
|
|
Net charge-offs to average non-purchased loans(2) (3) |
|
|
0.08 |
|
|
|
0.14 |
|
|
|
|
|
Net charge-offs to average total loans(2) |
|
|
0.07 |
|
|
|
0.14 |
|
|
|
|
|
Nonperforming loans to total loans(4) |
|
|
0.25 |
|
|
|
0.25 |
|
|
|
|
|
Nonperforming assets to total assets(4) |
|
|
0.19 |
|
|
|
0.21 |
|
|
|
|
|
Allowance for loan losses to total loans(5) |
|
|
1.43 |
|
|
|
1.54 |
|
|
|
|
|
Other
information: |
|
|
|
|
|
|
|
|
|
|
|
|
Non-accrual loans(4) |
|
$ |
43,059 |
|
|
$ |
44,402 |
|
|
|
|
|
Accruing loans − 90 days past due(4) |
|
|
— |
|
|
|
— |
|
|
|
|
|
Troubled and restructured non-purchased loans − accruing(4) |
|
|
1,380 |
|
|
|
1,483 |
|
|
|
|
|
(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 OZKSupplemental
Quarterly Financial DataUnaudited
|
|
6/30/19 |
|
|
9/30/19 |
|
|
12/31/19 |
|
|
3/31/20 |
|
|
6/30/20 |
|
|
9/30/20 |
|
|
12/31/20 |
|
|
3/31/21 |
|
|
|
(Dollars in thousands, except per share amounts) |
|
Earnings Summary: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
$ |
224,536 |
|
|
$ |
218,780 |
|
|
$ |
214,977 |
|
|
$ |
209,775 |
|
|
$ |
216,593 |
|
|
$ |
224,657 |
|
|
$ |
237,600 |
|
|
$ |
234,636 |
|
Federal tax (FTE) adjustment |
|
|
1,136 |
|
|
|
1,038 |
|
|
|
1,028 |
|
|
|
1,133 |
|
|
|
1,753 |
|
|
|
1,605 |
|
|
|
1,533 |
|
|
|
1,275 |
|
Net interest income (FTE) |
|
|
225,672 |
|
|
|
219,818 |
|
|
|
216,005 |
|
|
|
210,908 |
|
|
|
218,346 |
|
|
|
226,262 |
|
|
|
239,133 |
|
|
|
235,911 |
|
Provision for credit losses |
|
|
(6,769 |
) |
|
|
(7,854 |
) |
|
|
(4,938 |
) |
|
|
(117,663 |
) |
|
|
(72,026 |
) |
|
|
(7,200 |
) |
|
|
(6,750 |
) |
|
|
31,559 |
|
Non-interest income |
|
|
26,603 |
|
|
|
26,446 |
|
|
|
30,406 |
|
|
|
27,680 |
|
|
|
21,591 |
|
|
|
26,676 |
|
|
|
28,661 |
|
|
|
32,117 |
|
Non-interest expense |
|
|
(99,131 |
) |
|
|
(100,914 |
) |
|
|
(104,406 |
) |
|
|
(103,425 |
) |
|
|
(100,953 |
) |
|
|
(105,641 |
) |
|
|
(103,394 |
) |
|
|
(106,059 |
) |
Pretax income (FTE) |
|
|
146,375 |
|
|
|
137,496 |
|
|
|
137,067 |
|
|
|
17,500 |
|
|
|
66,958 |
|
|
|
140,097 |
|
|
|
157,650 |
|
|
|
193,528 |
|
FTE adjustment |
|
|
(1,136 |
) |
|
|
(1,038 |
) |
|
|
(1,028 |
) |
|
|
(1,133 |
) |
|
|
(1,753 |
) |
|
|
(1,605 |
) |
|
|
(1,533 |
) |
|
|
(1,275 |
) |
Provision for income taxes |
|
|
(34,726 |
) |
|
|
(32,574 |
) |
|
|
(35,240 |
) |
|
|
(4,509 |
) |
|
|
(14,948 |
) |
|
|
(29,251 |
) |
|
|
(35,607 |
) |
|
|
(43,818 |
) |
Noncontrolling interest |
|
|
(10 |
) |
|
|
7 |
|
|
|
7 |
|
|
|
8 |
|
|
|
9 |
|
|
|
12 |
|
|
|
3 |
|
|
|
(19 |
) |
Net income available to common stockholders |
|
$ |
110,503 |
|
|
$ |
103,891 |
|
|
$ |
100,806 |
|
|
$ |
11,866 |
|
|
$ |
50,266 |
|
|
$ |
109,253 |
|
|
$ |
120,513 |
|
|
$ |
148,416 |
|
Earnings per common share – diluted |
|
$ |
0.86 |
|
|
$ |
0.81 |
|
|
$ |
0.78 |
|
|
$ |
0.09 |
|
|
$ |
0.39 |
|
|
$ |
0.84 |
|
|
$ |
0.93 |
|
|
$ |
1.14 |
|
Non-interest
Income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service charges on deposit accounts |
|
$ |
10,291 |
|
|
$ |
10,827 |
|
|
$ |
10,933 |
|
|
$ |
10,009 |
|
|
$ |
8,281 |
|
|
$ |
9,427 |
|
|
$ |
9,983 |
|
|
$ |
9,665 |
|
Trust income |
|
|
1,839 |
|
|
|
1,975 |
|
|
|
2,010 |
|
|
|
1,939 |
|
|
|
1,759 |
|
|
|
1,936 |
|
|
|
1,909 |
|
|
|
2,206 |
|
BOLI income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase in cash surrender value |
|
|
5,178 |
|
|
|
5,208 |
|
|
|
5,167 |
|
|
|
5,067 |
|
|
|
5,057 |
|
|
|
5,081 |
|
|
|
5,034 |
|
|
|
4,881 |
|
Death benefits |
|
|
— |
|
|
|
206 |
|
|
|
2,989 |
|
|
|
608 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,409 |
|
Loan service, maintenance and other fees |
|
|
4,565 |
|
|
|
4,197 |
|
|
|
4,282 |
|
|
|
3,716 |
|
|
|
3,394 |
|
|
|
3,351 |
|
|
|
3,797 |
|
|
|
3,551 |
|
Gains on sales of other assets |
|
|
402 |
|
|
|
189 |
|
|
|
1,358 |
|
|
|
161 |
|
|
|
621 |
|
|
|
891 |
|
|
|
5,189 |
|
|
|
5,828 |
|
Net gains on investment securities |
|
|
713 |
|
|
|
— |
|
|
|
— |
|
|
|
2,223 |
|
|
|
— |
|
|
|
2,244 |
|
|
|
— |
|
|
|
— |
|
Other |
|
|
3,615 |
|
|
|
3,844 |
|
|
|
3,667 |
|
|
|
3,957 |
|
|
|
2,479 |
|
|
|
3,746 |
|
|
|
2,749 |
|
|
|
4,577 |
|
Total non-interest income |
|
$ |
26,603 |
|
|
$ |
26,446 |
|
|
$ |
30,406 |
|
|
$ |
27,680 |
|
|
$ |
21,591 |
|
|
$ |
26,676 |
|
|
$ |
28,661 |
|
|
$ |
32,117 |
|
Non-interest
Expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
|
$ |
47,558 |
|
|
$ |
48,376 |
|
|
$ |
52,050 |
|
|
$ |
51,473 |
|
|
$ |
48,410 |
|
|
$ |
53,119 |
|
|
$ |
53,832 |
|
|
$ |
53,645 |
|
Net occupancy and equipment |
|
|
14,587 |
|
|
|
14,825 |
|
|
|
14,855 |
|
|
|
15,330 |
|
|
|
15,756 |
|
|
|
16,676 |
|
|
|
15,617 |
|
|
|
16,468 |
|
Other operating expenses |
|
|
36,986 |
|
|
|
37,713 |
|
|
|
37,501 |
|
|
|
36,622 |
|
|
|
36,787 |
|
|
|
35,846 |
|
|
|
33,945 |
|
|
|
35,946 |
|
Total non-interest expense |
|
$ |
99,131 |
|
|
$ |
100,914 |
|
|
$ |
104,406 |
|
|
$ |
103,425 |
|
|
$ |
100,953 |
|
|
$ |
105,641 |
|
|
$ |
103,394 |
|
|
$ |
106,059 |
|
Balance Sheet
Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
22,960,731 |
|
|
$ |
23,402,679 |
|
|
$ |
23,555,728 |
|
|
$ |
24,565,810 |
|
|
$ |
26,380,409 |
|
|
$ |
26,888,308 |
|
|
$ |
27,162,596 |
|
|
$ |
27,276,892 |
|
Non-purchased loans |
|
|
15,786,809 |
|
|
|
16,307,621 |
|
|
|
16,224,539 |
|
|
|
17,030,378 |
|
|
|
18,247,431 |
|
|
|
18,419,958 |
|
|
|
18,401,495 |
|
|
|
17,979,435 |
|
Purchased loans |
|
|
1,698,396 |
|
|
|
1,427,230 |
|
|
|
1,307,504 |
|
|
|
1,197,826 |
|
|
|
1,063,647 |
|
|
|
938,485 |
|
|
|
807,673 |
|
|
|
735,630 |
|
Investment securities – AFS |
|
|
2,548,489 |
|
|
|
2,414,722 |
|
|
|
2,277,389 |
|
|
|
2,816,556 |
|
|
|
3,299,944 |
|
|
|
3,468,243 |
|
|
|
3,405,351 |
|
|
|
4,162,479 |
|
Deposits |
|
|
18,186,215 |
|
|
|
18,440,078 |
|
|
|
18,474,259 |
|
|
|
18,809,190 |
|
|
|
20,723,598 |
|
|
|
21,287,405 |
|
|
|
21,450,356 |
|
|
|
21,296,442 |
|
Unfunded balance of closed loans |
|
|
11,167,055 |
|
|
|
11,429,918 |
|
|
|
11,325,598 |
|
|
|
11,334,737 |
|
|
|
11,411,441 |
|
|
|
11,604,614 |
|
|
|
11,847,117 |
|
|
|
11,780,099 |
|
Common stockholders' equity |
|
|
3,993,247 |
|
|
|
4,078,324 |
|
|
|
4,150,351 |
|
|
|
4,083,150 |
|
|
|
4,110,666 |
|
|
|
4,186,285 |
|
|
|
4,272,271 |
|
|
|
4,383,205 |
|
Bank OZKSupplemental
Quarterly Financial Data (Continued)Unaudited
|
|
6/30/19 |
|
|
9/30/19 |
|
|
12/31/19 |
|
|
3/31/20 |
|
|
6/30/20 |
|
|
9/30/20 |
|
|
12/31/20 |
|
|
3/31/21 |
|
|
|
(Dollars in thousands, except per share amounts) |
|
Allowance for Credit Losses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at beginning of period |
|
$ |
105,954 |
|
|
$ |
106,642 |
|
|
$ |
109,001 |
|
|
$ |
108,525 |
|
|
$ |
316,409 |
|
|
$ |
374,494 |
|
|
$ |
377,273 |
|
|
$ |
377,305 |
|
Adoption of CECL(1) methodology |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
94,512 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Net charge-offs |
|
|
(6,081 |
) |
|
|
(5,495 |
) |
|
|
(5,414 |
) |
|
|
(4,291 |
) |
|
|
(13,941 |
) |
|
|
(4,421 |
) |
|
|
(6,718 |
) |
|
|
(3,439 |
) |
Provision for credit losses |
|
|
6,769 |
|
|
|
7,854 |
|
|
|
4,938 |
|
|
|
117,663 |
|
|
|
72,026 |
|
|
|
7,200 |
|
|
|
6,750 |
|
|
|
(31,559 |
) |
Balance at end of period |
|
$ |
106,642 |
|
|
$ |
109,001 |
|
|
$ |
108,525 |
|
|
$ |
316,409 |
|
|
$ |
374,494 |
|
|
$ |
377,273 |
|
|
$ |
377,305 |
|
|
$ |
342,307 |
|
Allowance for loan losses |
|
$ |
106,642 |
|
|
$ |
109,001 |
|
|
$ |
108,525 |
|
|
$ |
238,737 |
|
|
$ |
306,196 |
|
|
$ |
308,847 |
|
|
$ |
295,824 |
|
|
$ |
268,077 |
|
Reserve for losses on unfunded loan commitments |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
77,672 |
|
|
|
68,298 |
|
|
|
68,426 |
|
|
|
81,481 |
|
|
|
74,230 |
|
Total allowance for credit losses |
|
$ |
106,642 |
|
|
$ |
109,001 |
|
|
$ |
108,525 |
|
|
$ |
316,409 |
|
|
$ |
374,494 |
|
|
$ |
377,273 |
|
|
$ |
377,305 |
|
|
$ |
342,307 |
|
Selected
Ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest margin – FTE(2) |
|
|
4.45 |
% |
|
|
4.26 |
% |
|
|
4.15 |
% |
|
|
3.96 |
% |
|
|
3.74 |
% |
|
|
3.69 |
% |
|
|
3.88 |
% |
|
|
3.86 |
% |
Efficiency ratio |
|
|
39.30 |
|
|
|
40.98 |
|
|
|
42.37 |
|
|
|
43.35 |
|
|
|
42.07 |
|
|
|
41.77 |
|
|
|
38.61 |
|
|
|
39.57 |
|
Net charge-offs to average non-purchased loans(2) (3) |
|
|
0.12 |
|
|
|
0.07 |
|
|
|
0.10 |
|
|
|
0.08 |
|
|
|
0.05 |
|
|
|
0.09 |
|
|
|
0.14 |
|
|
|
0.08 |
|
Net charge-offs to average total loans(2) |
|
|
0.14 |
|
|
|
0.12 |
|
|
|
0.12 |
|
|
|
0.10 |
|
|
|
0.29 |
|
|
|
0.09 |
|
|
|
0.14 |
|
|
|
0.07 |
|
Nonperforming loans to total loans(4) |
|
|
0.15 |
|
|
|
0.17 |
|
|
|
0.15 |
|
|
|
0.16 |
|
|
|
0.18 |
|
|
|
0.15 |
|
|
|
0.25 |
|
|
|
0.25 |
|
Nonperforming assets to total assets(4) |
|
|
0.25 |
|
|
|
0.26 |
|
|
|
0.18 |
|
|
|
0.19 |
|
|
|
0.19 |
|
|
|
0.17 |
|
|
|
0.21 |
|
|
|
0.19 |
|
Allowance for loan losses to total loans (5) |
|
|
0.61 |
|
|
|
0.61 |
|
|
|
0.62 |
|
|
|
1.31 |
|
|
|
1.59 |
|
|
|
1.60 |
|
|
|
1.54 |
|
|
|
1.43 |
|
Loans past due 30 days or more, including past due non-accrual
loans, to total loans(4) |
|
|
0.13 |
|
|
|
0.14 |
|
|
|
0.19 |
|
|
|
0.18 |
|
|
|
0.13 |
|
|
|
0.13 |
|
|
|
0.16 |
|
|
|
0.13 |
|
(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 OZKAverage
Consolidated Balance Sheets and Net Interest Analysis –
FTEUnaudited
|
|
Three Months Ended March 31, |
|
|
|
2021 |
|
|
2020 |
|
|
|
AverageBalance |
|
|
Income/Expense |
|
|
Yield/Rate |
|
|
AverageBalance |
|
|
Income/Expense |
|
|
Yield/Rate |
|
|
|
(Dollars in thousands) |
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest earning deposits and federal funds sold |
|
$ |
2,212,680 |
|
|
$ |
538 |
|
|
|
0.10 |
% |
|
$ |
1,367,297 |
|
|
$ |
4,376 |
|
|
|
1.29 |
% |
Investment securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable |
|
|
2,422,127 |
|
|
|
8,083 |
|
|
|
1.35 |
|
|
|
1,796,061 |
|
|
|
10,760 |
|
|
|
2.41 |
|
Tax-exempt – FTE |
|
|
1,167,827 |
|
|
|
4,659 |
|
|
|
1.62 |
|
|
|
486,062 |
|
|
|
4,553 |
|
|
|
3.77 |
|
Non-purchased loans – FTE |
|
|
18,188,269 |
|
|
|
240,124 |
|
|
|
5.35 |
|
|
|
16,526,270 |
|
|
|
232,030 |
|
|
|
5.65 |
|
Purchased loans |
|
|
776,097 |
|
|
|
11,935 |
|
|
|
6.24 |
|
|
|
1,265,413 |
|
|
|
21,387 |
|
|
|
6.80 |
|
Total earning assets – FTE |
|
|
24,767,000 |
|
|
|
265,339 |
|
|
|
4.34 |
|
|
|
21,441,103 |
|
|
|
273,106 |
|
|
|
5.12 |
|
Non-interest earning
assets |
|
|
2,279,477 |
|
|
|
|
|
|
|
|
|
|
|
2,353,330 |
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
27,046,477 |
|
|
|
|
|
|
|
|
|
|
$ |
23,794,433 |
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Savings and interest bearing transaction |
|
$ |
8,337,990 |
|
|
$ |
3,616 |
|
|
|
0.18 |
% |
|
$ |
8,131,400 |
|
|
$ |
19,747 |
|
|
|
0.98 |
% |
Time deposits of $100 or more |
|
|
6,095,614 |
|
|
|
13,913 |
|
|
|
0.93 |
|
|
|
4,388,337 |
|
|
|
22,190 |
|
|
|
2.03 |
|
Other time deposits |
|
|
2,900,579 |
|
|
|
6,821 |
|
|
|
0.95 |
|
|
|
3,333,529 |
|
|
|
15,745 |
|
|
|
1.90 |
|
Total interest bearing deposits |
|
|
17,334,183 |
|
|
|
24,350 |
|
|
|
0.57 |
|
|
|
15,853,266 |
|
|
|
57,682 |
|
|
|
1.46 |
|
Repurchase agreements with customers |
|
|
5,800 |
|
|
|
4 |
|
|
|
0.26 |
|
|
|
7,883 |
|
|
|
6 |
|
|
|
0.32 |
|
Other borrowings(1) |
|
|
750,384 |
|
|
|
986 |
|
|
|
0.53 |
|
|
|
296,969 |
|
|
|
50 |
|
|
|
0.07 |
|
Subordinated notes |
|
|
224,092 |
|
|
|
3,146 |
|
|
|
5.69 |
|
|
|
223,711 |
|
|
|
3,172 |
|
|
|
5.70 |
|
Subordinated debentures(1) |
|
|
120,540 |
|
|
|
942 |
|
|
|
3.17 |
|
|
|
119,984 |
|
|
|
1,288 |
|
|
|
4.31 |
|
Total interest bearing liabilities |
|
|
18,434,999 |
|
|
|
29,428 |
|
|
|
0.65 |
|
|
|
16,501,813 |
|
|
|
62,198 |
|
|
|
1.52 |
|
Non-interest bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest bearing deposits |
|
|
3,972,815 |
|
|
|
|
|
|
|
|
|
|
|
2,927,296 |
|
|
|
|
|
|
|
|
|
Other non-interest bearing liabilities |
|
|
328,401 |
|
|
|
|
|
|
|
|
|
|
|
243,598 |
|
|
|
|
|
|
|
|
|
Total liabilities |
|
|
22,736,215 |
|
|
|
|
|
|
|
|
|
|
|
19,672,707 |
|
|
|
|
|
|
|
|
|
Common stockholders’
equity |
|
|
4,307,174 |
|
|
|
|
|
|
|
|
|
|
|
4,118,614 |
|
|
|
|
|
|
|
|
|
Noncontrolling interest |
|
|
3,088 |
|
|
|
|
|
|
|
|
|
|
|
3,112 |
|
|
|
|
|
|
|
|
|
Total liabilities and stockholders’ equity |
|
$ |
27,046,477 |
|
|
|
|
|
|
|
|
|
|
$ |
23,794,433 |
|
|
|
|
|
|
|
|
|
Net interest income – FTE |
|
|
|
|
|
$ |
235,911 |
|
|
|
|
|
|
|
|
|
|
$ |
210,908 |
|
|
|
|
|
Net interest margin – FTE |
|
|
|
|
|
|
|
|
|
|
3.86 |
% |
|
|
|
|
|
|
|
|
|
|
3.96 |
% |
Core spread(2) |
|
|
|
|
|
|
|
|
|
|
4.78 |
% |
|
|
|
|
|
|
|
|
|
|
4.19 |
% |
(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 $0.03 million for the first quarter of 2021
compared to $0.36 million for the first quarter of 2020. In the
absence of this interest capitalization, the rates on other
borrowings would have been 0.55% for the first quarter of 2021 and
0.55% for the first quarter of 2020. Capitalized interest included
in subordinated debentures totaled $0.14 million for the first
quarter of 2020 (none in the first quarter of 2021). In the absence
of this interest capitalization, the rate on subordinated
debentures would have been 4.80% for the first quarter of 2020.
(2) Core spread is the difference between the yield on the
Bank’s non-purchased loans-FTE and the cost of its interest bearing
deposits.
Bank OZKReconciliation
of Non-GAAP Financial Measures
Calculation of Average Tangible Common
Stockholders’ Equityand the Annualized Return on
Average Tangible Common Stockholders’ EquityUnaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
March 31, |
|
|
December 31, |
|
|
|
2021 |
|
|
2020 |
|
|
2020 |
|
|
|
(Dollars in thousands) |
|
Net income available to common
stockholders |
|
$ |
148,416 |
|
|
$ |
11,866 |
|
|
$ |
120,513 |
|
Average common stockholders’
equity before noncontrolling interest |
|
$ |
4,307,174 |
|
|
$ |
4,118,614 |
|
|
$ |
4,219,249 |
|
Less average intangible
assets: |
|
|
|
|
|
|
|
|
|
|
|
|
Goodwill |
|
|
(660,789 |
) |
|
|
(660,789 |
) |
|
|
(660,789 |
) |
Core deposit and other intangible assets, net of accumulated
amortization |
|
|
(13,828 |
) |
|
|
(22,412 |
) |
|
|
(15,578 |
) |
Total average intangibles |
|
|
(674,617 |
) |
|
|
(683,201 |
) |
|
|
(676,367 |
) |
Average tangible common
stockholders’ equity |
|
$ |
3,632,557 |
|
|
$ |
3,435,413 |
|
|
$ |
3,542,882 |
|
Return on average common
stockholders’ equity(1) |
|
|
13.97 |
% |
|
|
1.16 |
% |
|
|
11.36 |
% |
Return on average tangible
common stockholders' equity(1) |
|
|
16.57 |
% |
|
|
1.39 |
% |
|
|
13.53 |
% |
(1) Ratios for interim periods annualized based on actual
days.
Calculation of Total Tangible Common
Stockholders’ Equityand Tangible Book Value per
Common ShareUnaudited
|
|
March 31, |
|
|
December 31, |
|
|
|
2021 |
|
|
2020 |
|
|
2020 |
|
|
|
(In thousands, except per share amounts) |
|
Total common stockholders’ equity before noncontrolling
interest |
|
$ |
4,383,205 |
|
|
$ |
4,083,150 |
|
|
$ |
4,272,271 |
|
Less intangible assets: |
|
|
|
|
|
|
|
|
|
|
|
|
Goodwill |
|
|
(660,789 |
) |
|
|
(660,789 |
) |
|
|
(660,789 |
) |
Core deposit and other intangible assets, net of
accumulatedamortization |
|
|
(12,939 |
) |
|
|
(20,958 |
) |
|
|
(14,669 |
) |
Total intangibles |
|
|
(673,728 |
) |
|
|
(681,747 |
) |
|
|
(675,458 |
) |
Total tangible common
stockholders' equity |
|
$ |
3,709,477 |
|
|
$ |
3,401,403 |
|
|
$ |
3,596,813 |
|
Shares of common stock
outstanding |
|
|
129,719 |
|
|
|
129,324 |
|
|
|
129,350 |
|
Book value per common
share |
|
$ |
33.79 |
|
|
$ |
31.57 |
|
|
$ |
33.03 |
|
Tangible book value per common
share |
|
$ |
28.60 |
|
|
$ |
26.30 |
|
|
$ |
27.81 |
|
Calculation of Total Tangible Common
Stockholders’ Equityand the Ratio of Total
Tangible Common Stockholders’ Equityto Total
Tangible AssetsUnaudited
|
|
March 31, |
|
|
|
2021 |
|
|
2020 |
|
|
|
(Dollars in thousands) |
|
Total common stockholders’ equity before noncontrolling
interest |
|
$ |
4,383,205 |
|
|
$ |
4,083,150 |
|
Less intangible assets: |
|
|
|
|
|
|
|
|
Goodwill |
|
|
(660,789 |
) |
|
|
(660,789 |
) |
Core deposit and other intangible assets, net of accumulated
amortization |
|
|
(12,939 |
) |
|
|
(20,958 |
) |
Total intangibles |
|
|
(673,728 |
) |
|
|
(681,747 |
) |
Total tangible common
stockholders' equity |
|
$ |
3,709,477 |
|
|
$ |
3,401,403 |
|
Total assets |
|
$ |
27,276,892 |
|
|
$ |
24,565,810 |
|
Less intangible assets: |
|
|
|
|
|
|
|
|
Goodwill |
|
|
(660,789 |
) |
|
|
(660,789 |
) |
Core deposit and other intangible assets, net of accumulated
amortization |
|
|
(12,939 |
) |
|
|
(20,958 |
) |
Total intangibles |
|
|
(673,728 |
) |
|
|
(681,747 |
) |
Total tangible assets |
|
$ |
26,603,164 |
|
|
$ |
23,884,063 |
|
Ratio of total common
stockholders’ equity to total assets |
|
|
16.07 |
% |
|
|
16.62 |
% |
Ratio of total tangible common
stockholders’ equity to total tangible assets |
|
|
13.94 |
% |
|
|
14.24 |
% |
Calculation of Pre-Tax Pre-Provision Net
RevenueUnaudited
|
|
Three Months Ended |
|
|
|
March 31, |
|
|
December 31, |
|
|
|
2021 |
|
|
2020 |
|
|
2020 |
|
|
|
(Dollars in thousands) |
|
Income before taxes |
|
$ |
192,253 |
|
|
$ |
16,367 |
|
|
$ |
156,117 |
|
Provision for credit
losses |
|
|
(31,559 |
) |
|
|
117,663 |
|
|
|
6,750 |
|
Pre-tax pre-provision net
revenue |
|
$ |
160,694 |
|
|
$ |
134,030 |
|
|
$ |
162,867 |
|
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