Bank OZK (the “Bank”) (Nasdaq: OZK) today announced that net income
available to common stockholders for the third quarter of 2022 was
$128.3 million, a 1.5% decrease from $130.3 million for the third
quarter of 2021. Diluted earnings per common share for the third
quarter of 2022 were $1.08, an 8.0% increase from $1.00 for the
third quarter of 2021.
For the nine months ended September 30, 2022, net income
available to common stockholders was $388.7 million, a 9.4%
decrease from $429.2 million for the first nine months of 2021.
Diluted earnings per common share for the first nine months of 2022
were $3.20, a 3.0% decrease from $3.30 for the first nine months of
2021.
The Bank’s provision for credit losses was $39.8 million for the
third quarter and $51.0 million for the first nine months of 2022
compared to negative provisions for credit losses of $7.5 million
for the third quarter and $69.9 million for the first nine months
of 2021. The growth in both funded and unfunded loan balances
during the quarter contributed to the higher provision for credit
losses, which impacted net income. The Bank’s total allowance for
credit losses (“ACL”) was $335.6 million at September 30, 2022. The
calculations of the Bank’s provision expense for the third quarter
and first nine months of 2022 and its total ACL at September 30,
2022 were based on a number of key estimates, assumptions and
economic forecasts and included certain qualitative adjustments to
capture items not fully reflected in the modeled results.
Pre-tax pre-provision net revenue (“PPNR”) was $208.1 million
for the third quarter of 2022, a 27.2% increase from $163.5 million
for the third quarter of 2021. For the nine months ended September
30, 2022, PPNR was $564.0 million, a 15.3% increase from $489.0
million for the first nine months of 2021. 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 third quarter of 2022 were 1.97%, 11.85% and 14.02%,
respectively, compared to 1.98%, 11.41% and 13.39%, respectively,
for the third quarter of 2021. The Bank’s annualized returns on
average assets, average common stockholder’s equity and average
tangible common stockholders’ equity for the first nine months of
2022 were 1.99%, 11.97%, and 14.14%, respectively, compared to
2.15%, 12.98%, and 15.31%, respectively, for the first nine months
of 2021. The calculation of the Bank’s returns on average common
stockholders’ equity and average tangible common stockholders’
equity and the reconciliations to GAAP are included in the
schedules accompanying this release.
George Gleason, Chairman and Chief Executive Officer stated, “We
are pleased to report our strong results for the third quarter of
2022. Our results were highlighted by our fourth consecutive
quarter of record RESG loan originations and solid growth in RESG’s
funded loans, along with meaningful contributions to growth from
our Community Banking and other lending teams. This reflects
our dual focus on both organic loan growth and increased portfolio
diversification. Our strong capital and liquidity, disciplined
credit culture and outstanding team have us well positioned for the
current environment and the longer term.”
KEY BALANCE SHEET METRICS
Total loans were $19.51 billion at September 30, 2022, a 6.6%
increase from $18.31 billion at September 30, 2021. Non-purchased
loans were $19.10 billion at September 30, 2022, a 7.9% increase
from $17.71 billion at September 30, 2021. Purchased loans, which
consist of loans acquired in previous acquisitions, were $0.41
billion at September 30, 2022, a 31.4% decrease from $0.60 billion
at September 30, 2021.
Deposits were $20.40 billion at September 30, 2022, a 1.5%
increase from $20.10 billion at September 30, 2021. Total assets
were $26.23 billion at September 30, 2022, a 0.3% increase from
$26.14 billion at September 30, 2021.
Common stockholders’ equity was $4.20 billion at September 30,
2022, a 7.7% decrease from $4.55 billion at September 30, 2021.
Tangible common stockholders’ equity was $3.54 billion at September
30, 2022, an 8.9% decrease from $3.88 billion at September 30,
2021. Book value per common share was $35.67 at September 30, 2022,
a 0.9% increase from $35.35 at September 30, 2021. Tangible book
value per common share was $30.02 at September 30, 2022, a 0.4%
decrease from $30.14 at September 30, 2021. The calculations of the
Bank’s common stockholders’ equity, 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 16.01% at September 30, 2022, compared to 17.42% at
September 30, 2021. Its ratio of total tangible common
stockholders’ equity to total tangible assets was 13.83% at
September 30, 2022, compared to 15.24% at September 30, 2021. 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.
STOCK REPURCHASES
During the quarter just ended, the Bank repurchased
approximately 1.23 million shares of its common stock at a weighted
average price of $38.96, for a total of $47.7 million. During the
first nine months of 2022, the Bank repurchased approximately 7.80
million shares of its common stock at a weighted average price of
$41.90, for a total of $326.7 million. Our current stock repurchase
program expires November 4, 2022. In evaluating any plans for stock
repurchases after expiration of the current program, the Bank will
consider a variety of factors including its capital position,
expected growth, alternative uses of capital, liquidity, financial
performance, stock price, current and expected macro economic
environment, regulatory requirements and other factors.
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 October 21, 2022. Interested parties may access
the conference call live via webcast on the Bank’s investor
relations website at https://ir.ozk.com/news/event-calendar, or may
participate via telephone by registering using this online form.
Upon registration, all telephone participants will receive the
dial-in number along with a unique PIN number that can be used to
access the call. A replay of the conference call webcast will be
archived on the Bank's website for at least 30 days.
The Bank files annual, quarterly and current reports, proxy
materials, and other information required by the Securities
Exchange Act of 1934 with the Federal Deposit Insurance Corporation
(“FDIC”), copies of which are available electronically at the
FDIC’s website
at https://efr.fdic.gov/fcxweb/efr/index.html and are
also available on the Bank’s investor relations website
at ir.ozk.com. To receive automated email alerts for these
materials please
visit https://ir.ozk.com/other/email-alerts to sign
up.
NON-GAAP FINANCIAL MEASURES This release
contains certain non-GAAP financial measures. The Bank uses
these non-GAAP financial measures, specifically return on average
common stockholders’ equity, average tangible common stockholders’
equity, tangible book value per common share, common stockholders’
equity, 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 presentation and other communications by the Bank include
certain “forward-looking statements” regarding the Bank’s plans,
expectations, thoughts, beliefs, estimates, goals and outlook for
the future that are intended to be covered by the Private
Securities Litigation Reform Act of 1995. Forward-looking
statements are based on management’s expectations as well as
certain assumptions and estimates made by, and information
available to, management at the time. Those statements are not
guarantees of future results or performance and are subject to
certain known and unknown risks, uncertainties and other factors
that may cause actual results to differ materially from those
expressed in, or implied by, such forward-looking statements. These
risks, uncertainties and other factors include, but are not limited
to: potential delays or other problems in implementing the Bank’s
growth, expansion and acquisition strategies, including hiring or
retaining qualified personnel, obtaining regulatory or other
approvals, delays in identifying satisfactory sites, obtaining
permits and designing, constructing and opening new offices or
relocating, selling or closing existing offices; the ability to
enter into and/or close additional acquisitions; the availability
of and access to capital; possible downgrades in the Bank’s credit
ratings or outlook which could increase the costs of or decrease
the availability of funding from capital markets; the ability to
attract new or retain existing or acquired deposits or to retain or
grow loans, including growth from unfunded closed loans; the
ability to generate future revenue growth or to control future
growth in non-interest expense; interest rate fluctuations,
including changes in the yield curve between short-term and
long-term interest rates or changes in the relative relationships
of various interest rate indices; the potential impact of the
transition from the London Interbank Offered Rate (“LIBOR”) as a
reference rate; 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; recently enacted
and potential laws and regulatory requirements, including those
actions in response to the coronavirus (“COVID-19”) pandemic, or
changes to existing laws and regulatory requirements, including
changes affecting oversight of the financial services industry or
changes in the interpretation and enforcement of such laws and
requirements, and the costs and expenses to comply with new and/or
existing legislation and regulatory requirements; 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, 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; natural disasters or acts of war or
terrorism; the adverse effects of the ongoing global 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 the financial markets; the
potential impact of continuing inflationary pressures; the
potential impact of supply chain disruptions; national,
international or political instability or military conflict,
including the ongoing war in Ukraine; the competition and costs of
recruiting and retaining human talent; impairment of our 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 communication or as detailed from time to time
in our public filings, including those factors described in the
disclosures under the headings “Forward-Looking Information” and
“Item 1A. Risk Factors” in our most recent Annual Report on Form
10-K for the year ended December 31, 2021 and our quarterly reports
on Form 10-Q. Should one or more of the foregoing risks
materialize, or should underlying assumptions prove incorrect,
actual results or outcomes may vary materially from those described
in, or implied by, such forward-looking statements. The Bank
disclaims any obligation to update or revise any forward-looking
statements based on the occurrence of future events, the receipt of
new information or otherwise.
GENERAL INFORMATION
Bank OZK (Nasdaq: OZK) is a regional bank providing innovative
financial solutions delivered by expert bankers with a relentless
pursuit of excellence. Established in 1903, Bank OZK conducts
banking operations with over 240 offices in eight states including
Arkansas, Georgia, Florida, North Carolina, Texas, New York,
California and Mississippi and had $26.23 billion in total assets
as of September 30, 2022. 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 OZKConsolidated
Balance SheetsUnaudited
|
|
September 30, |
|
|
December 31, |
|
|
|
2022 |
|
|
2021 |
|
|
|
(Dollars in thousands, except per share amounts) |
|
ASSETS |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
895,824 |
|
|
$ |
2,053,829 |
|
Investment securities ―
available for sale (“AFS”) |
|
|
3,528,077 |
|
|
|
3,916,733 |
|
Investment securities ―
trading |
|
|
2,481 |
|
|
|
14,957 |
|
Federal Home Loan Bank of
Dallas and other bankers’ bank stocks |
|
|
31,841 |
|
|
|
40,788 |
|
Non-purchased loans |
|
|
19,103,546 |
|
|
|
17,791,610 |
|
Purchased loans |
|
|
410,166 |
|
|
|
516,215 |
|
Allowance for loan losses |
|
|
(200,098 |
) |
|
|
(217,380 |
) |
Net loans |
|
|
19,313,614 |
|
|
|
18,090,445 |
|
Premises and equipment,
net |
|
|
684,930 |
|
|
|
695,857 |
|
Foreclosed assets |
|
|
6,559 |
|
|
|
5,744 |
|
Accrued interest
receivable |
|
|
97,564 |
|
|
|
83,025 |
|
Bank owned life insurance
(“BOLI”) |
|
|
784,926 |
|
|
|
774,822 |
|
Goodwill and other intangible
assets, net |
|
|
664,732 |
|
|
|
669,063 |
|
Other, net |
|
|
221,571 |
|
|
|
185,167 |
|
Total assets |
|
$ |
26,232,119 |
|
|
$ |
26,530,430 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
Demand non-interest bearing |
|
$ |
4,824,209 |
|
|
$ |
4,983,788 |
|
Savings and interest bearing transaction |
|
|
9,763,638 |
|
|
|
9,245,727 |
|
Time |
|
|
5,814,029 |
|
|
|
5,979,619 |
|
Total deposits |
|
|
20,401,876 |
|
|
|
20,209,134 |
|
Other borrowings |
|
|
456,466 |
|
|
|
756,321 |
|
Subordinated notes |
|
|
346,741 |
|
|
|
346,133 |
|
Subordinated debentures |
|
|
121,450 |
|
|
|
121,033 |
|
Reserve for losses on unfunded
loan commitments |
|
|
135,537 |
|
|
|
71,609 |
|
Accrued interest payable and
other liabilities |
|
|
227,505 |
|
|
|
186,840 |
|
Total liabilities |
|
|
21,689,575 |
|
|
|
21,691,070 |
|
|
|
|
|
|
|
|
|
|
Commitments and
contingencies |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders’ equity: |
|
|
|
|
|
|
|
|
Preferred stock; $0.01 par value; 100,000,000 shares authorized;
14,000,000 issued and outstanding at September 30, 2022 and
December 31, 2021 |
|
|
338,980 |
|
|
|
338,980 |
|
Common stock; $0.01 par value; 300,000,000 shares
authorized; 117,761,605 and 125,443,748 shares
issued and outstanding at September 30, 2022 and December 31, 2021,
respectively |
|
|
1,178 |
|
|
|
1,254 |
|
Additional paid-in capital |
|
|
1,773,562 |
|
|
|
2,093,702 |
|
Retained earnings |
|
|
2,653,377 |
|
|
|
2,378,466 |
|
Accumulated other comprehensive (loss) income |
|
|
(227,673 |
) |
|
|
23,841 |
|
Total stockholders’ equity before noncontrolling interest |
|
|
4,539,424 |
|
|
|
4,836,243 |
|
Noncontrolling interest |
|
|
3,120 |
|
|
|
3,117 |
|
Total stockholders’ equity |
|
|
4,542,544 |
|
|
|
4,839,360 |
|
Total liabilities and stockholders’ equity |
|
$ |
26,232,119 |
|
|
$ |
26,530,430 |
|
Bank OZKConsolidated
Statements of IncomeUnaudited
|
Three Months EndedSeptember
30, |
|
|
Nine Months EndedSeptember
30, |
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
|
(Dollars in thousands, except per share amounts) |
|
Interest income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-purchased loans |
$ |
295,054 |
|
|
$ |
238,258 |
|
|
$ |
791,313 |
|
|
$ |
716,639 |
|
Purchased loans |
|
7,148 |
|
|
|
11,350 |
|
|
|
24,300 |
|
|
|
34,985 |
|
Investment securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable |
|
10,269 |
|
|
|
9,236 |
|
|
|
31,246 |
|
|
|
26,786 |
|
Tax-exempt |
|
7,126 |
|
|
|
3,296 |
|
|
|
14,132 |
|
|
|
10,860 |
|
Deposits with banks and federal funds sold |
|
3,690 |
|
|
|
523 |
|
|
|
6,155 |
|
|
|
1,556 |
|
Total interest income |
|
323,287 |
|
|
|
262,663 |
|
|
|
867,146 |
|
|
|
790,826 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
21,997 |
|
|
|
12,326 |
|
|
|
41,343 |
|
|
|
54,908 |
|
Other borrowings |
|
2,460 |
|
|
|
1,017 |
|
|
|
4,500 |
|
|
|
3,010 |
|
Subordinated notes |
|
2,631 |
|
|
|
429 |
|
|
|
7,808 |
|
|
|
6,755 |
|
Subordinated debentures |
|
1,582 |
|
|
|
934 |
|
|
|
3,741 |
|
|
|
2,814 |
|
Total interest expense |
|
28,670 |
|
|
|
14,706 |
|
|
|
57,392 |
|
|
|
67,487 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
294,617 |
|
|
|
247,957 |
|
|
|
809,754 |
|
|
|
723,339 |
|
Provision for credit
losses |
|
39,771 |
|
|
|
(7,454 |
) |
|
|
50,986 |
|
|
|
(69,946 |
) |
Net interest income after
provision for credit losses |
|
254,846 |
|
|
|
255,411 |
|
|
|
758,768 |
|
|
|
793,285 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service charges on deposit accounts: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NSF/Overdraft fees |
|
4,808 |
|
|
|
4,080 |
|
|
|
13,257 |
|
|
|
10,647 |
|
All other service charges |
|
7,089 |
|
|
|
7,097 |
|
|
|
20,963 |
|
|
|
20,507 |
|
Trust income |
|
2,007 |
|
|
|
2,247 |
|
|
|
6,012 |
|
|
|
6,365 |
|
BOLI income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase in cash surrender value |
|
4,940 |
|
|
|
4,940 |
|
|
|
14,579 |
|
|
|
14,739 |
|
Death benefits |
|
510 |
|
|
|
— |
|
|
|
807 |
|
|
|
1,409 |
|
Loan service, maintenance and other fees |
|
3,418 |
|
|
|
3,307 |
|
|
|
10,039 |
|
|
|
10,811 |
|
Gains on sales of other assets |
|
3,182 |
|
|
|
463 |
|
|
|
10,957 |
|
|
|
8,632 |
|
Net gains on investment securities |
|
321 |
|
|
|
— |
|
|
|
762 |
|
|
|
— |
|
Other |
|
2,888 |
|
|
|
3,850 |
|
|
|
9,583 |
|
|
|
12,733 |
|
Total non-interest income |
|
29,163 |
|
|
|
25,984 |
|
|
|
86,959 |
|
|
|
85,843 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
|
57,367 |
|
|
|
53,769 |
|
|
|
166,427 |
|
|
|
159,533 |
|
Net occupancy and equipment |
|
18,244 |
|
|
|
17,161 |
|
|
|
52,474 |
|
|
|
49,797 |
|
Other operating expenses |
|
40,080 |
|
|
|
39,467 |
|
|
|
113,807 |
|
|
|
110,840 |
|
Total non-interest expense |
|
115,691 |
|
|
|
110,397 |
|
|
|
332,708 |
|
|
|
320,170 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before taxes |
|
168,318 |
|
|
|
170,998 |
|
|
|
513,019 |
|
|
|
558,958 |
|
Provision for income
taxes |
|
35,969 |
|
|
|
40,713 |
|
|
|
111,754 |
|
|
|
129,691 |
|
Net income |
|
132,349 |
|
|
|
130,285 |
|
|
|
401,265 |
|
|
|
429,267 |
|
Earnings attributable to
noncontrolling interest |
|
— |
|
|
|
5 |
|
|
|
(3 |
) |
|
|
(27 |
) |
Preferred stock dividends |
|
4,047 |
|
|
|
— |
|
|
|
12,574 |
|
|
|
— |
|
Net income available to common
stockholders |
$ |
128,302 |
|
|
$ |
130,290 |
|
|
$ |
388,688 |
|
|
$ |
429,240 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per common
share |
$ |
1.08 |
|
|
$ |
1.01 |
|
|
$ |
3.21 |
|
|
$ |
3.31 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per common
share |
$ |
1.08 |
|
|
$ |
1.00 |
|
|
$ |
3.20 |
|
|
$ |
3.30 |
|
Bank OZKConsolidated
Statements of Stockholders’ EquityUnaudited
|
|
PreferredStock |
|
|
CommonStock |
|
|
AdditionalPaid-InCapital |
|
|
RetainedEarnings |
|
|
AccumulatedOtherComprehensive(Loss)
Income |
|
|
Non-ControllingInterest |
|
|
Total |
|
|
|
(Dollars in thousands, except per share amounts) |
|
Three
months ended September 30, 2022: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balances – June 30, 2022 |
|
$ |
338,980 |
|
|
$ |
1,190 |
|
|
$ |
1,817,650 |
|
|
$ |
2,563,130 |
|
|
$ |
(114,168 |
) |
|
$ |
3,120 |
|
|
$ |
4,609,902 |
|
Net income |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
132,349 |
|
|
|
— |
|
|
|
— |
|
|
|
132,349 |
|
Earnings attributable to
noncontrolling interest |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Total other comprehensive
loss |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(113,505 |
) |
|
|
— |
|
|
|
(113,505 |
) |
Preferred stock dividends,
$0.28906 per share |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(4,047 |
) |
|
|
— |
|
|
|
— |
|
|
|
(4,047 |
) |
Common stock dividends, $0.32
per share |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(38,055 |
) |
|
|
— |
|
|
|
— |
|
|
|
(38,055 |
) |
Issuance of 5,414 shares of
common stock for exercise of stock options |
|
|
— |
|
|
|
— |
|
|
|
172 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
172 |
|
Repurchase and cancellation of
1,225,688 shares of common stock under share repurchase
program |
|
|
— |
|
|
|
(12 |
) |
|
|
(47,735 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(47,747 |
) |
Stock-based compensation
expense |
|
|
— |
|
|
|
— |
|
|
|
3,475 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
3,475 |
|
Forfeitures of 14,142 shares
of unvested restricted common stock |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Balances – September 30,
2022 |
|
$ |
338,980 |
|
|
$ |
1,178 |
|
|
$ |
1,773,562 |
|
|
$ |
2,653,377 |
|
|
$ |
(227,673 |
) |
|
$ |
3,120 |
|
|
$ |
4,542,544 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine
months ended September 30, 2022: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balances – December 31,
2021 |
|
$ |
338,980 |
|
|
$ |
1,254 |
|
|
$ |
2,093,702 |
|
|
$ |
2,378,466 |
|
|
$ |
23,841 |
|
|
$ |
3,117 |
|
|
$ |
4,839,360 |
|
Net income |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
401,265 |
|
|
|
— |
|
|
|
— |
|
|
|
401,265 |
|
Earnings attributable to
noncontrolling interest |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(3 |
) |
|
|
— |
|
|
|
3 |
|
|
|
— |
|
Total other comprehensive
loss |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(251,514 |
) |
|
|
— |
|
|
|
(251,514 |
) |
Preferred stock dividends,
$0.89812 per share |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(12,574 |
) |
|
|
— |
|
|
|
— |
|
|
|
(12,574 |
) |
Common stock dividends, $0.93
per share |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(113,777 |
) |
|
|
— |
|
|
|
— |
|
|
|
(113,777 |
) |
Issuance of 74,521 shares of
common stock for exercise of stock options |
|
|
— |
|
|
|
1 |
|
|
|
2,251 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2,252 |
|
Issuance of 220,822 shares of
unvested restricted common stock |
|
|
— |
|
|
|
2 |
|
|
|
(2 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Repurchase and cancellation of
7,798,520 shares of common stock under share repurchase
program |
|
|
— |
|
|
|
(77 |
) |
|
|
(326,667 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(326,744 |
) |
Repurchase and cancellation of
112,974 shares of common stock withheld for tax pursuant to
restricted stock vesting |
|
|
— |
|
|
|
(1 |
) |
|
|
(5,398 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(5,399 |
) |
Stock-based compensation
expense |
|
|
— |
|
|
|
— |
|
|
|
9,675 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
9,675 |
|
Forfeitures of 65,992 shares
of unvested restricted common stock |
|
|
— |
|
|
|
(1 |
) |
|
|
1 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Balances – September 30,
2022 |
|
$ |
338,980 |
|
|
$ |
1,178 |
|
|
$ |
1,773,562 |
|
|
$ |
2,653,377 |
|
|
$ |
(227,673 |
) |
|
$ |
3,120 |
|
|
$ |
4,542,544 |
|
Bank OZKConsolidated
Statements of Stockholders’ EquityUnaudited
|
|
CommonStock |
|
|
AdditionalPaid-InCapital |
|
|
RetainedEarnings |
|
|
AccumulatedOtherComprehensiveIncome |
|
|
Non-ControllingInterest |
|
|
Total |
|
|
|
(Dollars in thousands, except per share amounts) |
|
Three months ended
September 30, 2021: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balances – June 30, 2021 |
|
$ |
1,297 |
|
|
$ |
2,277,138 |
|
|
$ |
2,173,114 |
|
|
$ |
50,127 |
|
|
$ |
3,117 |
|
|
$ |
4,504,793 |
|
Net income |
|
|
— |
|
|
|
— |
|
|
|
130,285 |
|
|
|
— |
|
|
|
— |
|
|
|
130,285 |
|
Earnings attributable to
noncontrolling interest |
|
|
— |
|
|
|
— |
|
|
|
5 |
|
|
|
— |
|
|
|
(5 |
) |
|
|
— |
|
Total other comprehensive
loss |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(9,421 |
) |
|
|
— |
|
|
|
(9,421 |
) |
Common stock dividends, $0.285
per share |
|
|
— |
|
|
|
— |
|
|
|
(37,170 |
) |
|
|
— |
|
|
|
— |
|
|
|
(37,170 |
) |
Issuance of 33,850 shares of
common stock for exercise of stock options |
|
|
1 |
|
|
|
1,085 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,086 |
|
Repurchase and cancellation of
888,567 shares of common stock under share repurchase program |
|
|
(9 |
) |
|
|
(36,990 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(36,999 |
) |
Stock-based compensation
expense |
|
|
— |
|
|
|
3,778 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
3,778 |
|
Forfeitures of 47,604 shares
of unvested restricted common stock |
|
|
(1 |
) |
|
|
1 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Balances – September 30,
2021 |
|
$ |
1,288 |
|
|
$ |
2,245,012 |
|
|
$ |
2,266,234 |
|
|
$ |
40,706 |
|
|
$ |
3,112 |
|
|
$ |
4,556,352 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine months ended
September 30, 2021: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balances – December 31,
2020 |
|
$ |
1,294 |
|
|
$ |
2,265,850 |
|
|
$ |
1,946,875 |
|
|
$ |
58,252 |
|
|
$ |
3,085 |
|
|
$ |
4,275,356 |
|
Net income |
|
|
— |
|
|
|
— |
|
|
|
429,267 |
|
|
|
— |
|
|
|
— |
|
|
|
429,267 |
|
Earnings attributable to
noncontrolling interest |
|
|
— |
|
|
|
— |
|
|
|
(27 |
) |
|
|
— |
|
|
|
27 |
|
|
|
— |
|
Total other comprehensive
income |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(17,546 |
) |
|
|
— |
|
|
|
(17,546 |
) |
Common stock dividends,
$0.8425 per share |
|
|
— |
|
|
|
— |
|
|
|
(109,881 |
) |
|
|
— |
|
|
|
— |
|
|
|
(109,881 |
) |
Issuance of 176,250 shares of
common stock for exercise of stock options |
|
|
2 |
|
|
|
6,092 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
6,094 |
|
Issuance of 332,831 shares of
unvested restricted common stock |
|
|
3 |
|
|
|
(3 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Repurchase and cancellation of
888,567 shares of common stock under share repurchase program |
|
|
(9 |
) |
|
|
(36,990 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(36,999 |
) |
Repurchase and cancellation of
55,893 shares of common stock withheld for taxes pursuant to
restricted stock vesting |
|
|
(1 |
) |
|
|
(1,976 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1,977 |
) |
Stock-based compensation
expense |
|
|
— |
|
|
|
12,038 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
12,038 |
|
Forfeitures of 97,250 shares
of unvested restricted common stock |
|
|
(1 |
) |
|
|
1 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Balances – September 30,
2021 |
|
$ |
1,288 |
|
|
$ |
2,245,012 |
|
|
$ |
2,266,234 |
|
|
$ |
40,706 |
|
|
$ |
3,112 |
|
|
$ |
4,556,352 |
|
Bank OZKSummary of
Non-Interest ExpenseUnaudited
|
|
Three Months EndedSeptember
30, |
|
|
Nine Months EndedSeptember
30, |
|
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
|
|
(Dollars in thousands) |
|
Salaries and employee
benefits |
|
$ |
57,367 |
|
|
$ |
53,769 |
|
|
$ |
166,427 |
|
|
$ |
159,533 |
|
Net occupancy and
equipment |
|
|
18,244 |
|
|
|
17,161 |
|
|
|
52,474 |
|
|
|
49,797 |
|
Other operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Professional and outside services |
|
|
8,059 |
|
|
|
7,084 |
|
|
|
23,602 |
|
|
|
21,134 |
|
Software and data processing |
|
|
6,044 |
|
|
|
5,897 |
|
|
|
18,188 |
|
|
|
17,695 |
|
Advertising and public relations |
|
|
3,448 |
|
|
|
719 |
|
|
|
5,810 |
|
|
|
1,621 |
|
Deposit insurance and assessments |
|
|
2,650 |
|
|
|
2,655 |
|
|
|
6,900 |
|
|
|
9,060 |
|
Postage and supplies |
|
|
2,035 |
|
|
|
1,530 |
|
|
|
5,240 |
|
|
|
4,718 |
|
Travel and meals |
|
|
1,962 |
|
|
|
1,617 |
|
|
|
5,906 |
|
|
|
3,811 |
|
Telecommunication services |
|
|
1,921 |
|
|
|
1,966 |
|
|
|
5,852 |
|
|
|
6,363 |
|
ATM expense |
|
|
1,500 |
|
|
|
1,846 |
|
|
|
4,497 |
|
|
|
4,615 |
|
Loan collection and repossession expense |
|
|
402 |
|
|
|
407 |
|
|
|
1,081 |
|
|
|
1,456 |
|
Writedowns of foreclosed and other assets |
|
|
87 |
|
|
|
990 |
|
|
|
345 |
|
|
|
2,476 |
|
Amortization of intangibles |
|
|
1,298 |
|
|
|
1,545 |
|
|
|
4,331 |
|
|
|
4,878 |
|
Amortization of CRA and tax credit investments |
|
|
5,155 |
|
|
|
4,972 |
|
|
|
14,885 |
|
|
|
12,324 |
|
Other |
|
|
5,519 |
|
|
|
8,239 |
|
|
|
17,170 |
|
|
|
20,689 |
|
Total non-interest expense |
|
$ |
115,691 |
|
|
$ |
110,397 |
|
|
$ |
332,708 |
|
|
$ |
320,170 |
|
Bank OZKSummary of Total
Loans OutstandingUnaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, 2022 |
|
|
December 31, 2021 |
|
|
|
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential 1-4 family |
|
$ |
968,369 |
|
|
|
5.0 |
% |
|
$ |
887,024 |
|
|
|
4.8 |
% |
Non-farm/non-residential |
|
|
4,609,068 |
|
|
|
23.6 |
|
|
|
3,782,892 |
|
|
|
20.7 |
|
Construction/land development |
|
|
7,367,128 |
|
|
|
37.8 |
|
|
|
8,246,674 |
|
|
|
45.0 |
|
Agricultural |
|
|
231,730 |
|
|
|
1.2 |
|
|
|
247,727 |
|
|
|
1.4 |
|
Multifamily residential |
|
|
1,341,639 |
|
|
|
6.9 |
|
|
|
934,845 |
|
|
|
5.1 |
|
Total real estate |
|
|
14,517,934 |
|
|
|
74.5 |
|
|
|
14,099,162 |
|
|
|
77.0 |
|
Commercial and industrial |
|
|
804,000 |
|
|
|
4.1 |
|
|
|
510,784 |
|
|
|
2.8 |
|
Consumer |
|
|
2,427,361 |
|
|
|
12.4 |
|
|
|
2,185,429 |
|
|
|
11.9 |
|
Other |
|
|
1,764,417 |
|
|
|
9.0 |
|
|
|
1,512,450 |
|
|
|
8.3 |
|
Total loans |
|
|
19,513,712 |
|
|
|
100.0 |
% |
|
|
18,307,825 |
|
|
|
100.0 |
% |
Allowance for loan losses |
|
|
(200,098 |
) |
|
|
|
|
|
|
(217,380 |
) |
|
|
|
|
Net loans |
|
$ |
19,313,614 |
|
|
|
|
|
|
$ |
18,090,445 |
|
|
|
|
|
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
September 30, 2022: |
|
|
|
|
|
|
|
|
|
|
|
|
Balances – June 30, 2022 |
|
$ |
190,795 |
|
|
$ |
109,143 |
|
|
$ |
299,938 |
|
Net charge-offs |
|
|
(4,074 |
) |
|
|
— |
|
|
|
(4,074 |
) |
Provision for credit
losses |
|
|
13,377 |
|
|
|
26,394 |
|
|
|
39,771 |
|
Balances – September 30,
2022 |
|
$ |
200,098 |
|
|
$ |
135,537 |
|
|
$ |
335,635 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine months ended
September 30, 2022: |
|
|
|
|
|
|
|
|
|
|
|
|
Balances – December 31,
2021 |
|
$ |
217,380 |
|
|
$ |
71,609 |
|
|
$ |
288,989 |
|
Net charge-offs |
|
|
(4,340 |
) |
|
|
— |
|
|
|
(4,340 |
) |
Provision for credit
losses |
|
|
(12,942 |
) |
|
|
63,928 |
|
|
|
50,986 |
|
Balances – September 30,
2022 |
|
$ |
200,098 |
|
|
$ |
135,537 |
|
|
$ |
335,635 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
September 30, 2021: |
|
|
|
|
|
|
|
|
|
|
|
|
Balances – June 30, 2021 |
|
$ |
248,753 |
|
|
$ |
58,811 |
|
|
$ |
307,564 |
|
Net charge-offs |
|
|
(1,312 |
) |
|
|
— |
|
|
|
(1,312 |
) |
Provision for credit
losses |
|
|
(9,719 |
) |
|
|
2,265 |
|
|
|
(7,454 |
) |
Balances – September 30,
2021 |
|
$ |
237,722 |
|
|
$ |
61,076 |
|
|
$ |
298,798 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine months ended
September 30, 2021: |
|
|
|
|
|
|
|
|
|
|
|
|
Balances – December 31,
2020 |
|
$ |
295,824 |
|
|
$ |
81,481 |
|
|
$ |
377,305 |
|
Net charge-offs |
|
|
(8,561 |
) |
|
|
— |
|
|
|
(8,561 |
) |
Provision for credit
losses |
|
|
(49,541 |
) |
|
|
(20,405 |
) |
|
|
(69,946 |
) |
Balances – September 30,
2021 |
|
$ |
237,722 |
|
|
$ |
61,076 |
|
|
$ |
298,798 |
|
Bank OZKSummary of
Deposits – By Account TypeUnaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, 2022 |
|
|
December 31, 2021 |
|
|
|
(Dollars in thousands) |
|
Non-interest bearing |
|
$ |
4,824,209 |
|
|
|
23.6 |
% |
|
$ |
4,983,788 |
|
|
|
24.7 |
% |
Interest bearing: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transaction (NOW) |
|
|
3,723,109 |
|
|
|
18.2 |
|
|
|
3,412,369 |
|
|
|
16.9 |
|
Savings and money market |
|
|
6,040,529 |
|
|
|
29.6 |
|
|
|
5,833,358 |
|
|
|
28.9 |
|
Time deposits |
|
|
5,814,029 |
|
|
|
28.6 |
|
|
|
5,979,619 |
|
|
|
29.5 |
|
Total deposits |
|
$ |
20,401,876 |
|
|
|
100.0 |
% |
|
$ |
20,209,134 |
|
|
|
100.0 |
% |
Summary of Deposits – By Customer
TypeUnaudited
|
|
|
|
|
|
September 30, 2022 |
|
|
December 31, 2021 |
|
|
|
(Dollars in thousands) |
|
Non-interest bearing |
|
$ |
4,824,209 |
|
|
|
23.6 |
% |
|
$ |
4,983,788 |
|
|
|
24.7 |
% |
Interest bearing: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer and commercial: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer – non-time |
|
|
4,197,997 |
|
|
|
20.6 |
|
|
|
4,334,378 |
|
|
|
21.4 |
|
Consumer – time |
|
|
4,127,269 |
|
|
|
20.2 |
|
|
|
4,318,742 |
|
|
|
21.4 |
|
Commercial – non-time |
|
|
2,891,061 |
|
|
|
14.2 |
|
|
|
2,634,817 |
|
|
|
13.0 |
|
Commercial – time |
|
|
557,130 |
|
|
|
2.7 |
|
|
|
905,347 |
|
|
|
4.5 |
|
Public funds |
|
|
2,054,727 |
|
|
|
10.1 |
|
|
|
2,094,800 |
|
|
|
10.4 |
|
Brokered |
|
|
1,322,297 |
|
|
|
6.5 |
|
|
|
452,137 |
|
|
|
2.2 |
|
Reciprocal |
|
|
427,186 |
|
|
|
2.1 |
|
|
|
485,125 |
|
|
|
2.4 |
|
Total deposits |
|
$ |
20,401,876 |
|
|
|
100.0 |
% |
|
$ |
20,209,134 |
|
|
|
100.0 |
% |
Bank OZKSelected
Consolidated Financial DataUnaudited
|
|
Three Months EndedSeptember
30, |
|
|
Nine Months EndedSeptember
30, |
|
|
|
2022 |
|
|
2021 |
|
|
% Change |
|
|
2022 |
|
|
2021 |
|
|
% Change |
|
|
|
(Dollars in thousands, except per share amounts) |
|
Income statement
data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
$ |
294,617 |
|
|
$ |
247,957 |
|
|
|
18.8 |
% |
|
$ |
809,754 |
|
|
$ |
723,339 |
|
|
|
11.9 |
% |
Provision for credit losses |
|
|
39,771 |
|
|
|
(7,454 |
) |
|
NM |
|
|
|
50,986 |
|
|
|
(69,946 |
) |
|
NM |
|
Non-interest income |
|
|
29,163 |
|
|
|
25,984 |
|
|
|
12.2 |
|
|
|
86,959 |
|
|
|
85,843 |
|
|
|
1.3 |
|
Non-interest expense |
|
|
115,691 |
|
|
|
110,397 |
|
|
|
4.8 |
|
|
|
332,708 |
|
|
|
320,170 |
|
|
|
3.9 |
|
Net income |
|
|
132,349 |
|
|
|
130,285 |
|
|
|
1.6 |
|
|
|
401,265 |
|
|
|
429,267 |
|
|
|
(6.5 |
) |
Preferred stock dividends |
|
|
4,047 |
|
|
|
— |
|
|
NM |
|
|
|
12,574 |
|
|
|
— |
|
|
NM |
|
Net income available to common stockholders |
|
|
128,302 |
|
|
|
130,290 |
|
|
|
(1.5 |
) |
|
|
388,688 |
|
|
|
429,240 |
|
|
|
(9.4 |
) |
Pre-tax pre-provision net revenue (1) |
|
|
208,089 |
|
|
|
163,544 |
|
|
|
27.2 |
|
|
|
564,005 |
|
|
|
489,012 |
|
|
|
15.3 |
|
Common share and per
common share data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per common share |
|
$ |
1.08 |
|
|
$ |
1.00 |
|
|
|
8.0 |
% |
|
$ |
3.20 |
|
|
$ |
3.30 |
|
|
|
(3.0 |
)% |
Basic earnings per common share |
|
|
1.08 |
|
|
|
1.01 |
|
|
|
6.9 |
|
|
|
3.21 |
|
|
|
3.31 |
|
|
|
(3.0 |
) |
Common stock dividends per share |
|
|
0.32 |
|
|
|
0.285 |
|
|
|
12.3 |
|
|
|
0.93 |
|
|
|
0.8425 |
|
|
|
10.4 |
|
Book value per share |
|
|
35.67 |
|
|
|
35.35 |
|
|
|
0.9 |
|
|
|
35.67 |
|
|
|
35.35 |
|
|
|
0.9 |
|
Tangible book value per common share (1) |
|
|
30.02 |
|
|
|
30.14 |
|
|
|
(0.4 |
) |
|
|
30.02 |
|
|
|
30.14 |
|
|
|
(0.4 |
) |
Weighted-average diluted shares outstanding (thousands) |
|
|
118,856 |
|
|
|
129,929 |
|
|
|
(8.5 |
) |
|
|
121,539 |
|
|
|
130,063 |
|
|
|
(6.6 |
) |
End of period shares outstanding (thousands) |
|
|
117,762 |
|
|
|
128,818 |
|
|
|
(8.6 |
) |
|
|
117,762 |
|
|
|
128,818 |
|
|
|
(8.6 |
) |
Balance sheet data at
period end: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
26,232,119 |
|
|
$ |
26,143,367 |
|
|
|
0.3 |
% |
|
$ |
26,232,119 |
|
|
$ |
26,143,367 |
|
|
|
0.3 |
% |
Total loans |
|
|
19,513,712 |
|
|
|
18,305,303 |
|
|
|
6.6 |
|
|
|
19,513,712 |
|
|
|
18,305,303 |
|
|
|
6.6 |
|
Non-purchased loans |
|
|
19,103,546 |
|
|
|
17,707,452 |
|
|
|
7.9 |
|
|
|
19,103,546 |
|
|
|
17,707,452 |
|
|
|
7.9 |
|
Purchased loans |
|
|
410,166 |
|
|
|
597,851 |
|
|
|
(31.4 |
) |
|
|
410,166 |
|
|
|
597,851 |
|
|
|
(31.4 |
) |
Allowance for loan losses |
|
|
200,098 |
|
|
|
237,722 |
|
|
|
(15.8 |
) |
|
|
200,098 |
|
|
|
237,722 |
|
|
|
(15.8 |
) |
Foreclosed assets |
|
|
6,559 |
|
|
|
9,444 |
|
|
|
(30.5 |
) |
|
|
6,559 |
|
|
|
9,444 |
|
|
|
(30.5 |
) |
Investment securities − AFS |
|
|
3,528,077 |
|
|
|
3,846,496 |
|
|
|
(8.3 |
) |
|
|
3,528,077 |
|
|
|
3,846,496 |
|
|
|
(8.3 |
) |
Goodwill and other intangible assets, net |
|
|
664,732 |
|
|
|
670,580 |
|
|
|
(0.9 |
) |
|
|
664,732 |
|
|
|
670,580 |
|
|
|
(0.9 |
) |
Deposits |
|
|
20,401,876 |
|
|
|
20,102,440 |
|
|
|
1.5 |
|
|
|
20,401,876 |
|
|
|
20,102,440 |
|
|
|
1.5 |
|
Other borrowings |
|
|
456,466 |
|
|
|
750,217 |
|
|
|
(39.2 |
) |
|
|
456,466 |
|
|
|
750,217 |
|
|
|
(39.2 |
) |
Subordinated notes |
|
|
346,741 |
|
|
|
345,927 |
|
|
|
0.2 |
|
|
|
346,741 |
|
|
|
345,927 |
|
|
|
0.2 |
|
Subordinated debentures |
|
|
121,450 |
|
|
|
120,892 |
|
|
|
0.5 |
|
|
|
121,450 |
|
|
|
120,892 |
|
|
|
0.5 |
|
Unfunded balance of closed loans |
|
|
20,091,101 |
|
|
|
12,385,369 |
|
|
|
62.2 |
|
|
|
20,091,101 |
|
|
|
12,385,369 |
|
|
|
62.2 |
|
Reserve for losses on unfunded loan commitments |
|
|
135,537 |
|
|
|
61,076 |
|
|
|
121.9 |
|
|
|
135,537 |
|
|
|
61,076 |
|
|
|
121.9 |
|
Preferred stock |
|
|
338,980 |
|
|
|
— |
|
|
NM |
|
|
|
338,980 |
|
|
|
— |
|
|
NM |
|
Total common stockholders’ equity (1) |
|
|
4,200,444 |
|
|
|
4,553,240 |
|
|
|
(7.7 |
) |
|
|
4,200,444 |
|
|
|
4,553,240 |
|
|
|
(7.7 |
) |
Net unrealized (losses) gains on investment securities AFS included
in stockholders’ equity |
|
|
(227,673 |
) |
|
|
40,706 |
|
|
NM |
|
|
|
(227,673 |
) |
|
|
40,706 |
|
|
NM |
|
Loan (including purchased loans) to deposit ratio |
|
|
95.65 |
% |
|
|
91.06 |
% |
|
|
5.0 |
|
|
|
95.65 |
% |
|
|
91.06 |
% |
|
|
5.0 |
|
Selected
ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average assets (2) |
|
|
1.97 |
% |
|
|
1.98 |
% |
|
|
|
|
|
|
1.99 |
% |
|
|
2.15 |
% |
|
|
|
|
Return on average common stockholders’ equity (1) (2) |
|
|
11.85 |
|
|
|
11.41 |
|
|
|
|
|
|
|
11.97 |
|
|
|
12.98 |
|
|
|
|
|
Return on average tangible common stockholders’ equity (1) (2) |
|
|
14.02 |
|
|
|
13.39 |
|
|
|
|
|
|
|
14.14 |
|
|
|
15.31 |
|
|
|
|
|
Average common equity to total average assets |
|
|
16.61 |
|
|
|
17.38 |
|
|
|
|
|
|
|
16.60 |
|
|
|
16.57 |
|
|
|
|
|
Net interest margin – FTE (2) |
|
|
5.03 |
|
|
|
4.16 |
|
|
|
|
|
|
|
4.60 |
|
|
|
3.99 |
|
|
|
|
|
Efficiency ratio |
|
|
35.50 |
|
|
|
40.14 |
|
|
|
|
|
|
|
36.92 |
|
|
|
39.39 |
|
|
|
|
|
Net charge-offs to average non-purchased loans (2) (3) |
|
|
0.09 |
|
|
|
0.04 |
|
|
|
|
|
|
|
0.07 |
|
|
|
0.07 |
|
|
|
|
|
Net charge-offs to average total loans (2) |
|
|
0.09 |
|
|
|
0.03 |
|
|
|
|
|
|
|
0.03 |
|
|
|
0.06 |
|
|
|
|
|
Nonperforming loans to total loans (4) |
|
|
0.14 |
|
|
|
0.20 |
|
|
|
|
|
|
|
0.14 |
|
|
|
0.20 |
|
|
|
|
|
Nonperforming assets to total assets (4) |
|
|
0.13 |
|
|
|
0.17 |
|
|
|
|
|
|
|
0.13 |
|
|
|
0.17 |
|
|
|
|
|
Allowance for loan losses to total loans (5) |
|
|
1.03 |
|
|
|
1.30 |
|
|
|
|
|
|
|
1.03 |
|
|
|
1.30 |
|
|
|
|
|
Other
information: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-accrual loans (4) |
|
$ |
24,633 |
|
|
$ |
34,920 |
|
|
|
|
|
|
$ |
24,633 |
|
|
$ |
34,920 |
|
|
|
|
|
Accruing loans − 90 days past due (4) |
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
— |
|
|
|
— |
|
|
|
|
|
Troubled and restructured non-purchased loans − accruing (4) |
|
|
1,610 |
|
|
|
1,253 |
|
|
|
|
|
|
|
1,610 |
|
|
|
1,253 |
|
|
|
|
|
(1) Calculations of pre-tax pre-provision net
revenue, total common stockholders’ equity, tangible book value per
common share and returns on average common stockholders’ equity and
average tangible common stockholders’ equity and the
reconciliations to GAAP are included in the schedules accompanying
this release.(2) Ratios for interim periods annualized
based on actual days.(3) Excludes purchased loans and
net charge-offs related to such loans.(4) Excludes
purchased loans, except for their inclusion in total
assets.(5) Excludes reserve for losses on unfunded loan
commitments.NM – Not meaningful
Selected Consolidated Financial Data
(continued)Unaudited
|
|
Three Months Ended |
|
|
|
September 30, 2022 |
|
|
June 30, 2022 |
|
|
% Change |
|
|
(Dollars in thousands, except per share amounts) |
|
Income statement
data: |
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
$ |
294,617 |
|
|
$ |
265,793 |
|
|
|
10.8 |
% |
Provision for credit losses |
|
|
39,771 |
|
|
|
7,025 |
|
|
|
466.1 |
|
Non-interest income |
|
|
29,163 |
|
|
|
26,320 |
|
|
|
10.8 |
|
Non-interest expense |
|
|
115,691 |
|
|
|
109,300 |
|
|
|
5.8 |
|
Net income |
|
|
132,349 |
|
|
|
136,413 |
|
|
|
(3.0 |
) |
Preferred stock dividends |
|
|
4,047 |
|
|
|
4,047 |
|
|
|
— |
|
Net income available to common stockholders |
|
|
128,302 |
|
|
|
132,358 |
|
|
|
(3.1 |
) |
Pre-tax pre-provision net revenue (1) |
|
|
208,089 |
|
|
|
182,813 |
|
|
|
13.8 |
|
Common share and per
common share data: |
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per common share |
|
$ |
1.08 |
|
|
$ |
1.10 |
|
|
|
(1.8 |
)% |
Basic earnings per common share |
|
|
1.08 |
|
|
|
1.10 |
|
|
|
(1.8 |
) |
Common stock dividends per share |
|
|
0.32 |
|
|
|
0.31 |
|
|
|
3.2 |
|
Book value per share |
|
|
35.67 |
|
|
|
35.87 |
|
|
|
(0.6 |
) |
Tangible book value per common share (1) |
|
|
30.02 |
|
|
|
30.27 |
|
|
|
(0.8 |
) |
Weighted-average diluted shares outstanding (thousands) |
|
|
118,856 |
|
|
|
120,827 |
|
|
|
(1.6 |
) |
End of period shares outstanding (thousands) |
|
|
117,762 |
|
|
|
118,996 |
|
|
|
(1.0 |
) |
Balance sheet data at
period end: |
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
26,232,119 |
|
|
$ |
25,919,965 |
|
|
|
1.2 |
% |
Total loans |
|
|
19,513,712 |
|
|
|
18,742,718 |
|
|
|
4.1 |
|
Non-purchased loans |
|
|
19,103,546 |
|
|
|
18,297,638 |
|
|
|
4.4 |
|
Purchased loans |
|
|
410,166 |
|
|
|
445,080 |
|
|
|
(7.8 |
) |
Allowance for loan losses |
|
|
200,098 |
|
|
|
190,795 |
|
|
|
4.9 |
|
Foreclosed assets |
|
|
6,559 |
|
|
|
2,593 |
|
|
|
153.0 |
|
Investment securities − AFS |
|
|
3,528,077 |
|
|
|
3,705,807 |
|
|
|
(4.8 |
) |
Goodwill and other intangible assets, net |
|
|
664,732 |
|
|
|
666,029 |
|
|
|
(0.2 |
) |
Deposits |
|
|
20,401,876 |
|
|
|
19,984,187 |
|
|
|
2.1 |
|
Other borrowings |
|
|
456,466 |
|
|
|
505,221 |
|
|
|
(9.7 |
) |
Subordinated notes |
|
|
346,741 |
|
|
|
346,536 |
|
|
|
0.1 |
|
Subordinated debentures |
|
|
121,450 |
|
|
|
121,310 |
|
|
|
0.1 |
|
Unfunded balance of closed loans |
|
|
20,091,101 |
|
|
|
17,369,767 |
|
|
|
15.7 |
|
Reserve for losses on unfunded loan commitments |
|
|
135,537 |
|
|
|
109,143 |
|
|
|
24.2 |
|
Preferred stock |
|
|
338,980 |
|
|
|
338,980 |
|
|
|
— |
|
Total common stockholders’ equity (1) |
|
|
4,200,444 |
|
|
|
4,267,802 |
|
|
|
(1.6 |
) |
Net unrealized losses on investment securities AFS included in
stockholders’ equity |
|
|
(227,673 |
) |
|
|
(114,168 |
) |
|
|
99.4 |
|
Loan (including purchased loans) to deposit ratio |
|
|
95.65 |
% |
|
|
93.79 |
% |
|
|
2.0 |
|
Selected
ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
Return on average assets (2) |
|
|
1.97 |
% |
|
|
2.02 |
% |
|
|
|
|
Return on average common stockholders’ equity (1) (2) |
|
|
11.85 |
|
|
|
12.40 |
|
|
|
|
|
Return on average tangible common stockholders’ equity (1) (2) |
|
|
14.02 |
|
|
|
14.69 |
|
|
|
|
|
Average common equity to average assets |
|
|
16.61 |
|
|
|
16.32 |
|
|
|
|
|
Net interest margin – FTE (2) |
|
|
5.03 |
|
|
|
4.52 |
|
|
|
|
|
Efficiency ratio |
|
|
35.50 |
|
|
|
37.25 |
|
|
|
|
|
Net charge-offs to average non-purchased loans (2) (3) |
|
|
0.09 |
|
|
|
0.03 |
|
|
|
|
|
Net charge-offs to average total loans (2) |
|
|
0.09 |
|
|
|
0.01 |
|
|
|
|
|
Nonperforming loans to total loans (4) |
|
|
0.14 |
|
|
|
0.16 |
|
|
|
|
|
Nonperforming assets to total assets (4) |
|
|
0.13 |
|
|
|
0.12 |
|
|
|
|
|
Allowance for loan losses to total loans (5) |
|
|
1.03 |
|
|
|
1.02 |
|
|
|
|
|
Other
information: |
|
|
|
|
|
|
|
|
|
|
|
|
Non-accrual loans (4) |
|
$ |
24,633 |
|
|
$ |
28,171 |
|
|
|
|
|
Accruing loans − 90 days past due (4) |
|
|
— |
|
|
|
— |
|
|
|
|
|
Troubled and restructured non-purchased loans − accruing (4) |
|
|
1,610 |
|
|
|
1,033 |
|
|
|
|
|
(1) Calculations of pre-tax pre-provision net
revenue, total common stockholders’ equity, tangible book value per
common share and returns on average common stockholders’ equity and
average tangible common stockholders’ equity and the
reconciliations to GAAP are included in the schedules accompanying
this release. (2) Ratios for interim periods annualized
based on actual days.(3) Excludes purchased loans and
net charge-offs related to such loans.(4) Excludes
purchased loans, except for their inclusion in total
assets.(5) Excludes reserve for losses on unfunded loan
commitments.
Bank OZKSupplemental
Quarterly Financial DataUnaudited
|
|
12/31/20 |
|
|
3/31/21 |
|
|
6/30/21 |
|
|
9/30/21 |
|
|
12/31/21 |
|
|
03/31/22 |
|
|
06/30/22 |
|
|
09/30/22 |
|
|
(Dollars in thousands) |
|
Earnings
Summary: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
$ |
237,600 |
|
|
$ |
234,636 |
|
|
$ |
240,746 |
|
|
$ |
247,957 |
|
|
$ |
266,381 |
|
|
$ |
249,343 |
|
|
$ |
265,793 |
|
|
$ |
294,617 |
|
Federal tax (FTE) adjustment |
|
|
1,533 |
|
|
|
1,275 |
|
|
|
1,355 |
|
|
|
1,106 |
|
|
|
1,009 |
|
|
|
1,017 |
|
|
|
1,300 |
|
|
|
2,151 |
|
Net interest income (FTE) |
|
|
239,133 |
|
|
|
235,911 |
|
|
|
242,101 |
|
|
|
249,063 |
|
|
|
267,390 |
|
|
|
250,360 |
|
|
|
267,093 |
|
|
|
296,768 |
|
Provision for credit losses |
|
|
(6,750 |
) |
|
|
31,559 |
|
|
|
30,932 |
|
|
|
7,454 |
|
|
|
7,992 |
|
|
|
(4,190 |
) |
|
|
(7,025 |
) |
|
|
(39,771 |
) |
Non-interest income |
|
|
28,661 |
|
|
|
32,117 |
|
|
|
27,742 |
|
|
|
25,984 |
|
|
|
29,695 |
|
|
|
31,475 |
|
|
|
26,320 |
|
|
|
29,163 |
|
Non-interest expense |
|
|
(103,394 |
) |
|
|
(106,059 |
) |
|
|
(103,711 |
) |
|
|
(110,397 |
) |
|
|
(110,106 |
) |
|
|
(107,715 |
) |
|
|
(109,300 |
) |
|
|
(115,691 |
) |
Pretax income (FTE) |
|
|
157,650 |
|
|
|
193,528 |
|
|
|
197,064 |
|
|
|
172,104 |
|
|
|
194,971 |
|
|
|
169,930 |
|
|
|
177,088 |
|
|
|
170,469 |
|
FTE adjustment |
|
|
(1,533 |
) |
|
|
(1,275 |
) |
|
|
(1,355 |
) |
|
|
(1,106 |
) |
|
|
(1,009 |
) |
|
|
(1,017 |
) |
|
|
(1,300 |
) |
|
|
(2,151 |
) |
Provision for income taxes |
|
|
(35,607 |
) |
|
|
(43,818 |
) |
|
|
(45,161 |
) |
|
|
(40,713 |
) |
|
|
(44,197 |
) |
|
|
(36,410 |
) |
|
|
(39,375 |
) |
|
|
(35,969 |
) |
Noncontrolling interest |
|
|
3 |
|
|
|
(19 |
) |
|
|
(13 |
) |
|
|
5 |
|
|
|
(5 |
) |
|
|
5 |
|
|
|
(8 |
) |
|
|
— |
|
Preferred stock dividend |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(4,480 |
) |
|
|
(4,047 |
) |
|
|
(4,047 |
) |
Net income available to common stockholders |
|
$ |
120,513 |
|
|
$ |
148,416 |
|
|
$ |
150,535 |
|
|
$ |
130,290 |
|
|
$ |
149,760 |
|
|
$ |
128,028 |
|
|
$ |
132,358 |
|
|
$ |
128,302 |
|
Earnings per common share – diluted |
|
$ |
0.93 |
|
|
$ |
1.14 |
|
|
$ |
1.16 |
|
|
$ |
1.00 |
|
|
$ |
1.17 |
|
|
$ |
1.02 |
|
|
$ |
1.10 |
|
|
$ |
1.08 |
|
PPNR |
|
$ |
162,867 |
|
|
$ |
160,694 |
|
|
$ |
164,777 |
|
|
$ |
163,544 |
|
|
$ |
185,970 |
|
|
$ |
173,103 |
|
|
$ |
182,813 |
|
|
$ |
208,089 |
|
Non-interest
Income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service charges on deposit accounts: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NSF/Overdraft fees |
|
$ |
4,024 |
|
|
$ |
3,323 |
|
|
$ |
3,244 |
|
|
$ |
4,080 |
|
|
$ |
4,315 |
|
|
$ |
4,201 |
|
|
$ |
4,247 |
|
|
$ |
4,808 |
|
All other service charges |
|
|
5,959 |
|
|
|
6,342 |
|
|
|
7,067 |
|
|
|
7,097 |
|
|
|
7,149 |
|
|
|
6,690 |
|
|
|
7,184 |
|
|
|
7,089 |
|
Trust income |
|
|
1,909 |
|
|
|
2,206 |
|
|
|
1,911 |
|
|
|
2,247 |
|
|
|
2,141 |
|
|
|
2,094 |
|
|
|
1,911 |
|
|
|
2,007 |
|
BOLI income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase in cash surrender value |
|
|
5,034 |
|
|
|
4,881 |
|
|
|
4,919 |
|
|
|
4,940 |
|
|
|
4,901 |
|
|
|
4,793 |
|
|
|
4,846 |
|
|
|
4,940 |
|
Death benefits |
|
|
— |
|
|
|
1,409 |
|
|
|
— |
|
|
|
— |
|
|
|
618 |
|
|
|
297 |
|
|
|
— |
|
|
|
510 |
|
Loan service, maintenance and other fees |
|
|
3,797 |
|
|
|
3,551 |
|
|
|
3,953 |
|
|
|
3,307 |
|
|
|
3,148 |
|
|
|
3,018 |
|
|
|
3,603 |
|
|
|
3,418 |
|
Gains on sales of other assets |
|
|
5,189 |
|
|
|
5,828 |
|
|
|
2,341 |
|
|
|
463 |
|
|
|
1,330 |
|
|
|
6,992 |
|
|
|
784 |
|
|
|
3,182 |
|
Net gains (losses) on investment securities |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
504 |
|
|
|
(90 |
) |
|
|
531 |
|
|
|
321 |
|
Other |
|
|
2,749 |
|
|
|
4,577 |
|
|
|
4,307 |
|
|
|
3,850 |
|
|
|
5,589 |
|
|
|
3,480 |
|
|
|
3,214 |
|
|
|
2,888 |
|
Total non-interest income |
|
$ |
28,661 |
|
|
$ |
32,117 |
|
|
$ |
27,742 |
|
|
$ |
25,984 |
|
|
$ |
29,695 |
|
|
$ |
31,475 |
|
|
$ |
26,320 |
|
|
$ |
29,163 |
|
Non-interest
Expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
|
$ |
53,832 |
|
|
$ |
53,645 |
|
|
$ |
52,119 |
|
|
$ |
53,769 |
|
|
$ |
55,034 |
|
|
$ |
54,648 |
|
|
$ |
54,412 |
|
|
$ |
57,367 |
|
Net occupancy and equipment |
|
|
15,617 |
|
|
|
16,468 |
|
|
|
16,168 |
|
|
|
17,161 |
|
|
|
17,004 |
|
|
|
17,215 |
|
|
|
17,014 |
|
|
|
18,244 |
|
Other operating expenses |
|
|
33,945 |
|
|
|
35,946 |
|
|
|
35,424 |
|
|
|
39,467 |
|
|
|
38,068 |
|
|
|
35,852 |
|
|
|
37,874 |
|
|
|
40,080 |
|
Total non-interest expense |
|
$ |
103,394 |
|
|
$ |
106,059 |
|
|
$ |
103,711 |
|
|
$ |
110,397 |
|
|
$ |
110,106 |
|
|
$ |
107,715 |
|
|
$ |
109,300 |
|
|
$ |
115,691 |
|
Balance Sheet
Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
27,162,596 |
|
|
$ |
27,276,892 |
|
|
$ |
26,605,938 |
|
|
$ |
26,143,367 |
|
|
$ |
26,530,430 |
|
|
$ |
26,562,353 |
|
|
$ |
25,919,965 |
|
|
$ |
26,232,119 |
|
Non-purchased loans |
|
|
18,401,495 |
|
|
|
17,979,435 |
|
|
|
17,611,848 |
|
|
|
17,707,452 |
|
|
|
17,791,610 |
|
|
|
18,449,723 |
|
|
|
18,297,638 |
|
|
|
19,103,546 |
|
Purchased loans |
|
|
807,673 |
|
|
|
735,630 |
|
|
|
659,822 |
|
|
|
597,851 |
|
|
|
516,215 |
|
|
|
481,299 |
|
|
|
445,080 |
|
|
|
410,166 |
|
Investment securities – AFS |
|
|
3,405,351 |
|
|
|
4,162,479 |
|
|
|
4,693,396 |
|
|
|
3,846,496 |
|
|
|
3,916,733 |
|
|
|
3,728,284 |
|
|
|
3,705,807 |
|
|
|
3,528,077 |
|
Deposits |
|
|
21,450,356 |
|
|
|
21,296,442 |
|
|
|
20,706,777 |
|
|
|
20,102,440 |
|
|
|
20,209,134 |
|
|
|
20,329,662 |
|
|
|
19,984,187 |
|
|
|
20,401,876 |
|
Unfunded balance of closed loans |
|
|
11,847,117 |
|
|
|
11,780,099 |
|
|
|
11,709,818 |
|
|
|
12,385,369 |
|
|
|
13,619,578 |
|
|
|
14,954,367 |
|
|
|
17,369,767 |
|
|
|
20,091,101 |
|
Preferred stock |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
338,980 |
|
|
|
338,980 |
|
|
|
338,980 |
|
|
|
338,980 |
|
Total stockholders' equity before noncontrolling interest |
|
|
4,272,271 |
|
|
|
4,383,205 |
|
|
|
4,501,676 |
|
|
|
4,553,240 |
|
|
|
4,836,243 |
|
|
|
4,690,057 |
|
|
|
4,606,782 |
|
|
|
4,539,424 |
|
Bank OZKSupplemental
Quarterly Financial Data (Continued)Unaudited
|
|
12/31/20 |
|
|
3/31/21 |
|
|
6/30/21 |
|
|
9/30/21 |
|
|
12/31/21 |
|
|
03/31/22 |
|
|
06/30/2022 |
|
|
09/30/22 |
|
|
(Dollars in thousands) |
|
Allowance for Credit
Losses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at beginning of period |
|
$ |
377,273 |
|
|
$ |
377,305 |
|
|
$ |
342,307 |
|
|
$ |
307,564 |
|
|
$ |
298,798 |
|
|
$ |
288,989 |
|
|
$ |
293,540 |
|
|
$ |
299,938 |
|
Net charge-offs |
|
|
(6,718 |
) |
|
|
(3,439 |
) |
|
|
(3,811 |
) |
|
|
(1,312 |
) |
|
|
(1,817 |
) |
|
|
361 |
|
|
|
(627 |
) |
|
|
(4,074 |
) |
Provision for credit losses |
|
|
6,750 |
|
|
|
(31,559 |
) |
|
|
(30,932 |
) |
|
|
(7,454 |
) |
|
|
(7,992 |
) |
|
|
4,190 |
|
|
|
7,025 |
|
|
|
39,771 |
|
Balance at end of period |
|
$ |
377,305 |
|
|
$ |
342,307 |
|
|
$ |
307,564 |
|
|
$ |
298,798 |
|
|
$ |
288,989 |
|
|
$ |
293,540 |
|
|
$ |
299,938 |
|
|
$ |
335,635 |
|
Allowance for loan losses |
|
$ |
295,824 |
|
|
$ |
268,077 |
|
|
$ |
248,753 |
|
|
$ |
237,722 |
|
|
$ |
217,380 |
|
|
$ |
204,213 |
|
|
$ |
190,795 |
|
|
$ |
200,098 |
|
Reserve for losses on unfunded loan commitments |
|
|
81,481 |
|
|
|
74,230 |
|
|
|
58,811 |
|
|
|
61,076 |
|
|
|
71,609 |
|
|
|
89,327 |
|
|
|
109,143 |
|
|
|
135,537 |
|
Total allowance for credit losses |
|
$ |
377,305 |
|
|
$ |
342,307 |
|
|
$ |
307,564 |
|
|
$ |
298,798 |
|
|
$ |
288,989 |
|
|
$ |
293,540 |
|
|
$ |
299,938 |
|
|
$ |
335,635 |
|
Selected
Ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest margin – FTE (1) |
|
|
3.88 |
% |
|
|
3.86 |
% |
|
|
3.95 |
% |
|
|
4.16 |
% |
|
|
4.41 |
% |
|
|
4.24 |
% |
|
|
4.52 |
% |
|
|
5.03 |
% |
Efficiency ratio |
|
|
38.61 |
|
|
|
39.57 |
|
|
|
38.43 |
|
|
|
40.14 |
|
|
|
37.06 |
|
|
|
38.22 |
|
|
|
37.25 |
|
|
|
35.50 |
|
Net charge-offs to average non-purchased loans (1) (2) |
|
|
0.14 |
|
|
|
0.08 |
|
|
|
0.09 |
|
|
|
0.04 |
|
|
|
0.05 |
|
|
|
0.08 |
|
|
|
0.03 |
|
|
|
0.09 |
|
Net charge-offs to average total loans (1) |
|
|
0.14 |
|
|
|
0.07 |
|
|
|
0.08 |
|
|
|
0.03 |
|
|
|
0.04 |
|
|
|
(0.01 |
) |
|
|
0.01 |
|
|
|
0.09 |
|
Nonperforming loans to total loans (3) |
|
|
0.25 |
|
|
|
0.25 |
|
|
|
0.22 |
|
|
|
0.20 |
|
|
|
0.19 |
|
|
|
0.21 |
|
|
|
0.16 |
|
|
|
0.14 |
|
Nonperforming assets to total assets (3) |
|
|
0.21 |
|
|
|
0.19 |
|
|
|
0.18 |
|
|
|
0.17 |
|
|
|
0.15 |
|
|
|
0.16 |
|
|
|
0.12 |
|
|
|
0.13 |
|
Allowance for loan losses to total loans (4) |
|
|
1.54 |
|
|
|
1.43 |
|
|
|
1.36 |
|
|
|
1.30 |
|
|
|
1.19 |
|
|
|
1.08 |
|
|
|
1.02 |
|
|
|
1.03 |
|
Loans past due 30 days or more, including past due non-accrual
loans, to total loans (3) |
|
|
0.16 |
|
|
|
0.13 |
|
|
|
0.10 |
|
|
|
0.13 |
|
|
|
0.15 |
|
|
|
0.14 |
|
|
|
0.11 |
|
|
|
0.11 |
|
(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
reserve for losses on unfunded loan commitments.
Bank OZKAverage
Consolidated Balance Sheets and Net Interest Analysis –
FTEUnaudited
|
|
Three Months Ended September 30, |
|
|
Nine Months Ended September 30, |
|
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
|
|
AverageBalance |
|
|
Income/Expense |
|
|
Yield/Rate |
|
|
AverageBalance |
|
|
Income/Expense |
|
|
Yield/Rate |
|
|
AverageBalance |
|
|
Income/Expense |
|
|
Yield/Rate |
|
|
AverageBalance |
|
|
Income/Expense |
|
|
Yield/Rate |
|
|
|
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest earning deposits and federal funds sold |
|
$ |
699,489 |
|
|
$ |
3,690 |
|
|
|
2.09 |
% |
|
$ |
1,287,890 |
|
|
$ |
523 |
|
|
|
0.16 |
% |
|
$ |
1,023,707 |
|
|
$ |
6,155 |
|
|
|
0.80 |
% |
|
$ |
1,792,191 |
|
|
$ |
1,556 |
|
|
|
0.12 |
% |
Investment securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable |
|
|
2,809,479 |
|
|
|
10,269 |
|
|
|
1.45 |
|
|
|
3,509,465 |
|
|
|
9,236 |
|
|
|
1.04 |
|
|
|
3,080,645 |
|
|
|
31,246 |
|
|
|
1.36 |
|
|
|
3,150,732 |
|
|
|
26,786 |
|
|
|
1.14 |
|
Tax-exempt – FTE |
|
|
907,955 |
|
|
|
9,020 |
|
|
|
3.94 |
|
|
|
740,809 |
|
|
|
4,172 |
|
|
|
2.23 |
|
|
|
706,628 |
|
|
|
17,889 |
|
|
|
3.38 |
|
|
|
955,822 |
|
|
|
13,747 |
|
|
|
1.92 |
|
Non-purchased loans – FTE |
|
|
18,544,681 |
|
|
|
295,311 |
|
|
|
6.32 |
|
|
|
17,559,654 |
|
|
|
238,488 |
|
|
|
5.39 |
|
|
|
18,413,106 |
|
|
|
792,025 |
|
|
|
5.75 |
|
|
|
17,761,807 |
|
|
|
717,488 |
|
|
|
5.40 |
|
Purchased loans |
|
|
429,312 |
|
|
|
7,148 |
|
|
|
6.61 |
|
|
|
627,436 |
|
|
|
11,350 |
|
|
|
7.18 |
|
|
|
464,205 |
|
|
|
24,300 |
|
|
|
7.00 |
|
|
|
699,678 |
|
|
|
34,985 |
|
|
|
6.69 |
|
Total earning assets – FTE |
|
|
23,390,916 |
|
|
|
325,438 |
|
|
|
5.52 |
|
|
|
23,725,254 |
|
|
|
263,769 |
|
|
|
4.41 |
|
|
|
23,688,291 |
|
|
|
871,615 |
|
|
|
4.92 |
|
|
|
24,360,230 |
|
|
|
794,562 |
|
|
|
4.36 |
|
Non-interest earning
assets |
|
|
2,474,862 |
|
|
|
|
|
|
|
|
|
|
|
2,348,740 |
|
|
|
|
|
|
|
|
|
|
|
2,460,424 |
|
|
|
|
|
|
|
|
|
|
|
2,324,716 |
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
25,865,778 |
|
|
|
|
|
|
|
|
|
|
$ |
26,073,994 |
|
|
|
|
|
|
|
|
|
|
$ |
26,148,715 |
|
|
|
|
|
|
|
|
|
|
$ |
26,684,946 |
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Savings and interest bearing transaction |
|
$ |
9,614,806 |
|
|
$ |
13,639 |
|
|
|
0.56 |
% |
|
$ |
8,891,042 |
|
|
$ |
2,885 |
|
|
|
0.13 |
% |
|
$ |
9,611,716 |
|
|
$ |
21,801 |
|
|
|
0.30 |
% |
|
$ |
8,656,762 |
|
|
$ |
9,840 |
|
|
|
0.15 |
% |
Time deposits |
|
|
5,232,727 |
|
|
|
8,358 |
|
|
|
0.63 |
|
|
|
6,920,513 |
|
|
|
9,441 |
|
|
|
0.54 |
|
|
|
5,464,267 |
|
|
|
19,542 |
|
|
|
0.48 |
|
|
|
7,964,704 |
|
|
|
45,068 |
|
|
|
0.76 |
|
Total interest bearing deposits |
|
|
14,847,533 |
|
|
|
21,997 |
|
|
|
0.59 |
|
|
|
15,811,555 |
|
|
|
12,326 |
|
|
|
0.31 |
|
|
|
15,075,983 |
|
|
|
41,343 |
|
|
|
0.37 |
|
|
|
16,621,466 |
|
|
|
54,908 |
|
|
|
0.44 |
|
Other borrowings |
|
|
517,161 |
|
|
|
2,460 |
|
|
|
1.89 |
|
|
|
757,786 |
|
|
|
1,017 |
|
|
|
0.53 |
|
|
|
647,083 |
|
|
|
4,500 |
|
|
|
0.93 |
|
|
|
757,141 |
|
|
|
3,010 |
|
|
|
0.53 |
|
Subordinated notes |
|
|
346,642 |
|
|
|
2,631 |
|
|
|
3.01 |
|
|
|
56,468 |
|
|
|
429 |
|
|
|
3.01 |
|
|
|
346,433 |
|
|
|
7,808 |
|
|
|
3.01 |
|
|
|
167,636 |
|
|
|
6,755 |
|
|
|
5.39 |
|
Subordinated debentures |
|
|
121,382 |
|
|
|
1,582 |
|
|
|
5.17 |
|
|
|
120,822 |
|
|
|
934 |
|
|
|
3.07 |
|
|
|
121,239 |
|
|
|
3,741 |
|
|
|
4.13 |
|
|
|
120,681 |
|
|
|
2,814 |
|
|
|
3.12 |
|
Total interest bearing liabilities |
|
|
15,832,718 |
|
|
|
28,670 |
|
|
|
0.72 |
|
|
|
16,746,631 |
|
|
|
14,706 |
|
|
0.35 |
|
|
|
16,190,738 |
|
|
|
57,392 |
|
|
|
0.47 |
|
|
|
17,666,924 |
|
|
|
67,487 |
|
|
0.51 |
|
Non-interest bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest bearing deposits |
|
|
4,998,392 |
|
|
|
|
|
|
|
|
|
|
|
4,523,521 |
|
|
|
|
|
|
|
|
|
|
|
4,915,023 |
|
|
|
|
|
|
|
|
|
|
|
4,289,589 |
|
|
|
|
|
|
|
|
|
Other non-interest bearing liabilities |
|
|
395,671 |
|
|
|
|
|
|
|
|
|
|
|
269,733 |
|
|
|
|
|
|
|
|
|
|
|
359,327 |
|
|
|
|
|
|
|
|
|
|
|
304,086 |
|
|
|
|
|
|
|
|
|
Total liabilities |
|
|
21,226,781 |
|
|
|
|
|
|
|
|
|
|
|
21,539,885 |
|
|
|
|
|
|
|
|
|
|
|
21,465,088 |
|
|
|
|
|
|
|
|
|
|
|
22,260,599 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total stockholders’ equity
before noncontrolling interest |
|
|
4,635,887 |
|
|
|
|
|
|
|
|
|
|
|
4,530,995 |
|
|
|
|
|
|
|
|
|
|
|
4,680,513 |
|
|
|
|
|
|
|
|
|
|
|
4,421,240 |
|
|
|
|
|
|
|
|
|
Noncontrolling interest |
|
|
3,110 |
|
|
|
|
|
|
|
|
|
|
|
3,114 |
|
|
|
|
|
|
|
|
|
|
|
3,114 |
|
|
|
|
|
|
|
|
|
|
|
3,107 |
|
|
|
|
|
|
|
|
|
Total liabilities and stockholders’ equity |
|
$ |
25,865,778 |
|
|
|
|
|
|
|
|
|
|
$ |
26,073,994 |
|
|
|
|
|
|
|
|
|
|
$ |
26,148,715 |
|
|
|
|
|
|
|
|
|
|
$ |
26,684,946 |
|
|
|
|
|
|
|
|
|
Net interest income – FTE |
|
|
|
|
|
$ |
296,768 |
|
|
|
|
|
|
|
|
|
|
$ |
249,063 |
|
|
|
|
|
|
|
|
|
|
$ |
814,223 |
|
|
|
|
|
|
|
|
|
|
$ |
727,075 |
|
|
|
|
|
Net interest margin – FTE |
|
|
|
|
|
|
|
|
|
|
5.03 |
% |
|
|
|
|
|
|
|
|
|
|
4.16 |
% |
|
|
|
|
|
|
|
|
|
|
4.60 |
% |
|
|
|
|
|
|
|
|
|
|
3.99 |
% |
Core spread (1) |
|
|
|
|
|
|
|
|
|
|
5.73 |
% |
|
|
|
|
|
|
|
|
|
|
5.08 |
% |
|
|
|
|
|
|
|
|
|
|
5.38 |
% |
|
|
|
|
|
|
|
|
|
|
4.96 |
% |
(1) Core spread is the difference between the
yield on the Bank’s non-purchased loans-FTE and the rate on its
interest bearing deposits.
Bank OZKReconciliation
of Non-GAAP Financial Measures
Calculation of Average Common
Stockholders’ Equity,Average Tangible Common
Stockholders’ Equity and the Annualized
Returns on Average Common Stockholders’ Equity
and Average Tangible Common Stockholders’
Equity Unaudited
|
Three Months Ended |
|
|
Nine Months Ended |
|
|
September 30,2022 |
|
|
September 30,2021 |
|
|
June 30,2022 |
|
|
September 30,2022 |
|
|
September 30,2021 |
|
|
(Dollars in thousands) |
|
Net income available to common
stockholders |
$ |
128,302 |
|
|
$ |
130,290 |
|
|
$ |
132,358 |
|
|
$ |
388,688 |
|
|
$ |
429,240 |
|
Average stockholders’ equity
before noncontrolling interest |
$ |
4,635,887 |
|
|
$ |
4,530,995 |
|
|
$ |
4,619,033 |
|
|
$ |
4,680,513 |
|
|
$ |
4,421,240 |
|
Less average preferred
stock |
|
(338,980 |
) |
|
|
— |
|
|
|
(338,980 |
) |
|
|
(338,980 |
) |
|
|
— |
|
Total average common stockholders’ equity |
|
4,296,907 |
|
|
|
4,530,995 |
|
|
|
4,280,053 |
|
|
|
4,341,533 |
|
|
|
4,421,240 |
|
Less average intangible
assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Goodwill |
|
(660,789 |
) |
|
|
(660,789 |
) |
|
|
(660,789 |
) |
|
|
(660,789 |
) |
|
|
(660,789 |
) |
Core deposit and other intangible assets, net of accumulated
amortization |
|
(4,747 |
) |
|
|
(10,617 |
) |
|
|
(6,084 |
) |
|
|
(6,124 |
) |
|
|
(12,195 |
) |
Total average intangibles |
|
(665,536 |
) |
|
|
(671,406 |
) |
|
|
(666,873 |
) |
|
|
(666,913 |
) |
|
|
(672,984 |
) |
Average tangible common
stockholders’ equity |
$ |
3,631,371 |
|
|
$ |
3,859,589 |
|
|
$ |
3,613,180 |
|
|
$ |
3,674,620 |
|
|
$ |
3,748,256 |
|
Return on average common
stockholders’ equity (1) |
|
11.85 |
% |
|
|
11.41 |
% |
|
|
12.40 |
% |
|
|
11.97 |
% |
|
|
12.98 |
% |
Return on average tangible
common stockholders’ equity (1) |
|
14.02 |
% |
|
|
13.39 |
% |
|
|
14.69 |
% |
|
|
14.14 |
% |
|
|
15.31 |
% |
(1) Ratios for interim periods annualized based on actual
days.
Calculation of Total Common Stockholders’
Equity, Total Tangible Common Stockholders’
Equity and Tangible Book Value per Common
Share Unaudited
|
|
September 30, |
|
|
June 30, |
|
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
|
(In thousands, except per share amounts) |
|
Total stockholders’ equity
before noncontrolling interest |
|
$ |
4,539,424 |
|
|
$ |
4,553,240 |
|
|
$ |
4,606,782 |
|
Less preferred stock |
|
|
(338,980 |
) |
|
|
— |
|
|
|
(338,980 |
) |
Total common stockholders' equity |
|
|
4,200,444 |
|
|
|
4,553,240 |
|
|
|
4,267,802 |
|
Less intangible assets: |
|
|
|
|
|
|
|
|
|
|
|
|
Goodwill |
|
|
(660,789 |
) |
|
|
(660,789 |
) |
|
|
(660,789 |
) |
Core deposit and other intangible assets, net of accumulated
amortization |
|
|
(3,943 |
) |
|
|
(9,791 |
) |
|
|
(5,240 |
) |
Total intangibles |
|
|
(664,732 |
) |
|
|
(670,580 |
) |
|
|
(666,029 |
) |
Total tangible common
stockholders’ equity |
|
$ |
3,535,712 |
|
|
$ |
3,882,660 |
|
|
$ |
3,601,773 |
|
Shares of common stock
outstanding |
|
|
117,762 |
|
|
|
128,818 |
|
|
|
118,996 |
|
Book value per common
share |
|
$ |
35.67 |
|
|
$ |
35.35 |
|
|
$ |
35.87 |
|
Tangible book value per common
share |
|
$ |
30.02 |
|
|
$ |
30.14 |
|
|
$ |
30.27 |
|
Calculation of Total Common Stockholders’
Equity,Total Tangible Common Stockholders’
Equityand the Ratio of Total Tangible Common
Stockholders’ Equityto Total Tangible
AssetsUnaudited
|
|
September 30, |
|
|
|
2022 |
|
|
2021 |
|
|
|
(Dollars in thousands) |
|
Total stockholders’ equity
before noncontrolling interest |
|
$ |
4,539,424 |
|
|
$ |
4,553,240 |
|
Less preferred stock |
|
|
(338,980 |
) |
|
|
— |
|
Total common stockholders’ equity |
|
|
4,200,444 |
|
|
|
4,553,240 |
|
Less intangible assets: |
|
|
|
|
|
|
|
|
Goodwill |
|
|
(660,789 |
) |
|
|
(660,789 |
) |
Core deposit and other intangible assets, net of accumulated
amortization |
|
|
(3,943 |
) |
|
|
(9,791 |
) |
Total intangibles |
|
|
(664,732 |
) |
|
|
(670,580 |
) |
Total tangible common
stockholders’ equity |
|
$ |
3,535,712 |
|
|
$ |
3,882,660 |
|
Total assets |
|
$ |
26,232,119 |
|
|
$ |
26,143,367 |
|
Less intangible assets: |
|
|
|
|
|
|
|
|
Goodwill |
|
|
(660,789 |
) |
|
|
(660,789 |
) |
Core deposit and other intangible assets, net of accumulated
amortization |
|
|
(3,943 |
) |
|
|
(9,791 |
) |
Total intangibles |
|
|
(664,732 |
) |
|
|
(670,580 |
) |
Total tangible assets |
|
$ |
25,567,387 |
|
|
$ |
25,472,787 |
|
Ratio of total common
stockholders’ equity to total assets |
|
|
16.01 |
% |
|
|
17.42 |
% |
Ratio of total tangible common
stockholders’ equity to total tangible assets |
|
|
13.83 |
% |
|
|
15.24 |
% |
Calculation of Pre-Tax Pre-Provision Net
RevenueUnaudited
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
|
|
September 30,2022 |
|
|
September 30,2021 |
|
|
June 30, 2022 |
|
|
September 30,2022 |
|
|
September 30,2021 |
|
|
|
(Dollars in thousands) |
|
Income before taxes |
|
$ |
168,318 |
|
|
$ |
170,998 |
|
|
$ |
175,788 |
|
|
$ |
513,019 |
|
|
$ |
558,958 |
|
Provision for credit
losses |
|
|
39,771 |
|
|
|
(7,454 |
) |
|
|
7,025 |
|
|
|
50,986 |
|
|
|
(69,946 |
) |
Pre-tax pre-provision net
revenue |
|
$ |
208,089 |
|
|
$ |
163,544 |
|
|
$ |
182,813 |
|
|
$ |
564,005 |
|
|
$ |
489,012 |
|
Investor Contact: |
|
Jay Staley (501)
906-7842 |
Media Contact: |
|
Michelle Rossow
(501) 906-3922 |
Bank OZK (NASDAQ:OZKAP)
Historical Stock Chart
From Jun 2024 to Jul 2024
Bank OZK (NASDAQ:OZKAP)
Historical Stock Chart
From Jul 2023 to Jul 2024