Press Release

Bank OZK Announces Fourth Quarter and Record Full Year 2019 Earnings

Company Release - 1/16/2020 4:01 PM ET

LITTLE ROCK, Ark., Jan. 16, 2020 (GLOBE NEWSWIRE) -- Bank OZK (the “Bank”) (Nasdaq: OZK) today announced that net income for the fourth quarter of 2019 was $100.8 million, a 12.4% decrease from $115.0 million for the fourth quarter of 2018.  Diluted earnings per common share for the fourth quarter of 2019 were $0.78, a 12.4% decrease from $0.89 for the fourth quarter of 2018.

For the full year of 2019, net income was $425.9 million, a 2.1% increase from $417.1 million for the full year of 2018.  Diluted earnings per common share for the full year of 2019 were $3.30, a 1.9% increase from $3.24 for the full year of 2018.

The Bank’s annualized returns on average assets, average common stockholders’ equity and average tangible common stockholders’ equity for the fourth quarter of 2019 were 1.74%, 9.73% and 11.68%, respectively, compared to 2.04%, 12.36% and 15.24%, respectively, for the fourth quarter of 2018.  The Bank’s returns on average assets, average common stockholders’ equity and average tangible common stockholders’ equity for the full year of 2019 were 1.87%, 10.72% and 12.98%, respectively, compared to 1.90%, 11.59% and 14.41%, respectively, for the full year of 2018.  The calculation of the Bank’s return on average tangible common stockholders’ equity and the reconciliation to generally accepted accounting principles (“GAAP”) are included in the schedules accompanying this release.

“We are very pleased to have achieved record net income of $425.9 million in 2019 and a 1.87% return on average assets,” stated George Gleason, Chairman and Chief Executive Officer.  “Our strong credit culture and consistent discipline have been important ingredients in our long term success, and we are not wavering from those principles in today’s challenging competitive and interest rate environment.  We believe our competitive advantages will allow us to capitalize on opportunities throughout 2020 and beyond.”

KEY BALANCE SHEET METRICS

Total loans, including purchased loans, were $17.53 billion at December 31, 2019, a 2.4% increase from $17.12 billion at December 31, 2018.  Non-purchased loans, which exclude loans acquired in previous acquisitions, were $16.22 billion at December 31, 2019, a 7.6% increase from $15.07 billion at December 31, 2018, but a 0.5% decrease from $16.31 billion at September 30, 2019.  Purchased loans, which consist of loans acquired in previous acquisitions, were $1.31 billion at December 31, 2019, a 36.0% decrease from $2.04 billion at December 31, 2018.  The unfunded balance of closed loans totaled $11.33 billion at December 31, 2019, a 0.3% decrease from $11.36 billion at December 31, 2018.

Deposits were $18.47 billion at December 31, 2019, a 3.0% increase from $17.94 billion at December 31, 2018.  Total assets were $23.56 billion at December 31, 2019, a 5.2% increase from $22.39 billion at December 31, 2018.

Common stockholders’ equity was $4.15 billion at December 31, 2019, a 10.1% increase from $3.77 billion at December 31, 2018.  Tangible common stockholders’ equity was $3.47 billion at December 31, 2019, a 12.8% increase from $3.07 billion at December 31, 2018.  Book value per common share was $32.19 at December 31, 2019, a 9.8% increase from $29.32 at December 31, 2018.  Tangible book value per common share was $26.88 at December 31, 2019, a 12.5% increase from $23.90 at December 31, 2018.  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 17.62% at December 31, 2019 compared to 16.84% at December 31, 2018.  Its ratio of total tangible common stockholders’ equity to total tangible assets was 15.15% at December 31, 2019 compared to 14.17% at December 31, 2018.  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 and year-end results, which are available at http://ir.ozk.com.  This release should be read in conjunction with management’s comments on the quarterly and year-end results.

Management will conduct a conference call to take questions on these quarterly and year-end results and management’s comments at 10:00 a.m. CT (11:00 a.m. ET) on January 17, 2020.  Interested parties may listen to this call by dialing 1-844-818-5110 (U.S. and Canada) or 210-229-8841 (internationally) and asking for the Bank OZK conference call.  A recorded playback of the call will be available for one week following the call at 1-855-859-2056 (U.S. and Canada) or 404-537-3406 (internationally).  The passcode for this playback is 2495839.  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 and the ratio of total tangible common stockholders’ equity to total tangible assets, as important measures of the strength of its capital and its ability to generate earnings on its tangible capital invested by its shareholders. These measures typically adjust GAAP financial measures to exclude intangible assets.  Management believes presentation of these non-GAAP financial measures provides useful supplemental information which contributes to a proper understanding of the financial results and capital levels of the Bank. These non-GAAP disclosures should not be viewed as a substitute for financial results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other banks.  Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are included in the tables at the end of this release under the caption “Reconciliation of Non-GAAP Financial Measures.”

FORWARD-LOOKING STATEMENTS

This release and other communications by the Bank include certain “forward-looking statements” regarding the Bank’s plans, expectations, thoughts, beliefs, estimates, goals and outlook for the future that are intended to be covered by the Private Securities Litigation Reform Act of 1995.  Forward-looking statements are based on management’s expectations as well as certain assumptions and estimates made by, and information available to, management at the time.  Those statements are not guarantees of future results or performance and are subject to certain known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those expressed in, or implied by, such forward-looking statements.  These risks, uncertainties and other factors include, but are not limited to: potential delays or other problems implementing the Bank’s growth, expansion and acquisition strategies, including delays in identifying satisfactory sites, hiring or retaining qualified personnel, obtaining regulatory or other approvals, obtaining permits and designing, constructing and opening new offices or relocating 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 change in the method for determining 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; 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; international or political instability; impairment of our goodwill or other intangible assets; adoption of new accounting standards, including the estimated effects from the adoption of the current expected credit loss (“CECL”) model on January 1, 2020, 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, 2018 and its quarterly reports on Form 10-Q. Should one or more of the foregoing risks materialize, or should underlying assumptions prove incorrect, actual results or outcomes may vary materially from those projected in, or implied by, such forward-looking statements.  The Bank disclaims any obligation to update or revise any forward-looking statements based on the occurrence of future events, the receipt of new information or otherwise.

GENERAL INFORMATION

Bank OZK (Nasdaq: OZK) is a regional bank providing innovative financial solutions delivered by expert bankers with a relentless pursuit of excellence. Bank OZK has been recognized as the top performing bank in the nation in its asset size 13 times in the past eight years and in 2019 was named Best Bank in the South by Money, the personal finance news and advice brand. Headquartered in Little Rock, Arkansas, Bank OZK conducts operations through more than 250 offices in Arkansas, Georgia, Florida, North Carolina, Texas, Alabama, South Carolina, California, New York and Mississippi.  Bank OZK can be found at www.ozk.com and on Facebook, Twitter and LinkedIn or contacted at (501) 978-2265 or P. O. Box 8811, Little Rock, Arkansas 72231-8811.

    
Bank OZK
Consolidated Balance Sheets

Unaudited
    
  December 31, 
  2019  2018 
    
  (Dollars in thousands, except per share amounts) 
ASSETS        
Cash and cash equivalents $1,495,757  $290,672 
Investment securities - available for sale ("AFS")  2,277,389   2,862,340 
Federal Home Loan Bank of Dallas and other banker's bank stocks  21,855   25,941 
Non-purchased loans  16,224,539   15,073,791 
Purchased loans  1,307,504   2,044,032 
Allowance for loan losses  (108,525)  (102,264)
Net loans  17,423,518   17,015,559 
Premises and equipment, net  711,541   567,189 
Foreclosed assets  19,096   16,171 
Accrued interest receivable  75,208   81,968 
Bank owned life insurance (“BOLI”)  738,860   721,238 
Goodwill and intangible assets, net  684,542   696,461 
Other, net  111,634   110,491 
Total assets $23,559,400  $22,388,030 
         
LIABILITIES AND STOCKHOLDERS EQUITY        
Deposits:        
Demand non-interest bearing $2,795,251  $2,748,273 
Savings and interest bearing transaction  8,307,607   9,682,713 
Time  7,371,401   5,507,429 
Total deposits  18,474,259   17,938,415 
Repurchase agreements with customers  11,249   20,564 
Other borrowings  351,387   96,692 
Subordinated notes  223,663   223,281 
Subordinated debentures  119,916   119,358 
Accrued interest payable and other liabilities  225,458   216,355 
Total liabilities  19,405,932   18,614,665 
         
Commitments and contingencies        
         
Stockholders’ equity:        
Preferred stock; $0.01 par value; 100,000,000 shares authorized; no shares issued or outstanding at December 31, 2019 or 2018      
Common stock; $0.01 par value; 300,000,000 shares authorized; 128,951,024 and 128,611,049 shares issued and outstanding at December 31, 2019 and 2018, respectively  1,289   1,286 
Additional paid-in capital  2,251,824   2,237,948 
Retained earnings  1,869,983   1,565,201 
Accumulated other comprehensive income (loss)  27,255   (34,105)
Total stockholders’ equity before noncontrolling interest  4,150,351   3,770,330 
Noncontrolling interest  3,117   3,035 
Total stockholders’ equity  4,153,468   3,773,365 
Total liabilities and stockholders’ equity $23,559,400  $22,388,030 


      
Bank OZK
Consolidated Statements of Income
Unaudited
      
  Three Months Ended
December 31,
  Year Ended
December 31,
 
 2019  2018  2019  2018 
   
 (Dollars in thousands, except per share amounts) 
Interest income:               
Non-purchased loans$240,912  $237,443  $981,811  $858,102 
Purchased loans 22,152   35,453   106,908   173,465 
Investment securities:               
Taxable 11,820   14,642   52,812   50,021 
Tax-exempt 3,323   3,941   14,252   16,193 
Deposits with banks and federal funds sold 2,756   590   6,758   3,039 
Total interest income 280,963   292,069   1,162,541   1,100,820 
                
Interest expense:               
Deposits 61,631   56,608   258,358   186,617 
Repurchase agreements with customers 11   26   50   785 
Other borrowings 34   2,193   1,531   3,017 
Subordinated notes 3,216   3,216   12,757   12,757 
Subordinated debentures 1,094   1,644   5,664   6,211 
Total interest expense 65,986   63,687   278,360   209,387 
                
Net interest income 214,977   228,382   884,181   891,433 
Provision for loan losses 4,938   7,271   26,241   64,398 
Net interest income after provision for loan losses 210,039   221,111   857,940   827,035 
                
Non-interest income:               
Service charges on deposit accounts 10,933   10,585   41,774   39,544 
Trust income 2,010   1,821   7,554   6,935 
BOLI income:               
  Increase in cash surrender value 5,167   5,269   20,715   20,700 
  Death benefits 2,989   482   3,194   3,211 
Other income from purchased loans 759   2,370   3,684   7,784 
Loan service, maintenance and other fees 4,282   5,245   17,917   20,354 
Gains on sales of other assets 1,358   465   2,233   2,219 
Net gains on investment securities       713   17 
Other 2,908   1,323   9,743   7,011 
Total non-interest income 30,406   27,560   107,527   107,775 
                
Non-interest expense:               
Salaries and employee benefits 52,050   41,837   192,851   170,478 
Net occupancy and equipment 14,855   14,027   59,018   56,362 
Other operating expenses 37,501   39,029   149,261   153,912 
Total non-interest expense 104,406   94,893   401,130   380,752 
                
Income before taxes 136,039   153,778   564,337   554,058 
Provision for income taxes 35,240   38,750   138,429   136,977 
Net income 100,799   115,028   425,908   417,081 
Earnings attributable to noncontrolling interest 7   3   (2)  25 
Net income available to common stockholders$100,806  $115,031  $425,906  $417,106 
                
Basic earnings per common share$0.78  $0.89  $3.30  $3.24 
                
Diluted earnings per common share$0.78  $0.89  $3.30  $3.24 


                   
Bank OZK
Consolidated Statements of Stockholders’ Equity
Unaudited
                   
  Common
Stock
  Additional
Paid-In
Capital
  Retained
Earnings
  Accumulated
Other
Comprehensive
Income (Loss)
  Non-
Controlling
Interest
  Total 
    
  (Dollars in thousands, except per share amounts) 
                         
Three months ended December 31, 2019:                        
Balances – September 30, 2019 $1,289  $2,247,973  $1,801,414  $27,648  $3,124  $4,081,448 
Net income        100,799         100,799 
Earnings attributable to noncontrolling interest        7      (7)   
Total other comprehensive loss           (393)     (393)
Common stock dividends paid, $0.25 per share        (32,237)        (32,237)
Issuance of 16,150 shares of common stock for exercise of stock options     266            266 
Stock-based compensation expense     3,585            3,585 
Forfeitures of 11,485 shares of unvested restricted common stock                  
Balances – December 31, 2019 $1,289  $2,251,824  $1,869,983  $27,255  $3,117  $4,153,468 
                         
Twelve months ended December 31, 2019:                        
Balances – December 31, 2018 $1,286  $2,237,948  $1,565,201  $(34,105) $3,035  $3,773,365 
Net income        425,908         425,908 
Earnings attributable to noncontrolling interest        (2)     2    
Total other comprehensive income           61,360      61,360 
Common stock dividends paid, $0.94 per share        (121,124)        (121,124)
Noncontrolling interest cash contribution              80   80 
Issuance of 83,500 shares of common stock for exercise of stock options  1   1,384            1,385 
Issuance of 406,074 shares of unvested restricted common stock  4   (4)            
Repurchase and cancellation of 63,716 shares of common stock  (1)  (1,674)           (1,675)
Stock-based compensation expense     14,169            14,169 
Forfeiture of 85,883 shares of unvested restricted common stock  (1)  1             
Balances – December 31, 2019 $1,289  $2,251,824  $1,869,983  $27,255  $3,117  $4,153,468 


                   
Bank OZK
Consolidated Statements of Stockholders’ Equity (continued)
Unaudited
                   
  Common
Stock
  Additional
Paid-In
Capital
  Retained
Earnings
  Accumulated
Other
Comprehensive
Loss
  Non-
Controlling
Interest
  Total 
    
  (Dollars in thousands, except per share amounts) 
Three months ended December 31, 2018:                        
Balances – September 30, 2018 $1,286  $2,234,383  $1,477,178  $(59,251) $3,038  $3,656,634 
Net income        115,028         115,028 
Earnings attributable to noncontrolling interest        3      (3)   
Total other comprehensive income           25,146      25,146 
Common stock dividends paid, $0.21 per share        (27,008)        (27,008)
Issuance of 6,850 shares of common stock for exercise of stock options     63            63 
Issuance of 224 shares of unvested restricted common stock                  
Stock-based compensation expense     3,502            3,502 
Forfeiture of 5,262 shares of unvested restricted common stock                  
Balances – December 31, 2018 $1,286  $2,237,948  $1,565,201  $(34,105) $3,035  $3,773,365 
                         
Twelve months ended December 31, 2018:                        
Balances – December 31, 2017 $1,283  $2,221,844  $1,250,313  $(12,712) $3,060  $3,463,788 
Net income        417,081         417,081 
Earnings attributable to noncontrolling interest        25      (25)   
Total other comprehensive loss           (21,393)     (21,393)
Common stock dividends paid, $0.795 per share        (102,218)        (102,218)
Issuance of 223,840 shares of common stock for exercise of stock options  2   5,740            5,742 
Issuance of 220,326 shares of unvested restricted common stock  2   (2)            
Repurchase and cancellation of 71,750 shares of common stock  (1)  (3,769)           (3,770)
Stock-based compensation expense     14,135            14,135 
Forfeitures of 48,917 shares of unvested restricted common stock                  
Balances – December 31, 2018 $1,286  $2,237,948  $1,565,201  $(34,105) $3,035  $3,773,365 


       
Bank OZK
Summary of Non-Interest Expense
Unaudited
       
  Three Months Ended
December 31,
  Year Ended
December 31,
 
  2019  2018  2019  2018 
    
  (Dollars in thousands) 
Salaries and employee benefits $52,050  $41,837  $192,851  $170,478 
Net occupancy and equipment  14,855   14,027   59,018   56,362 
Other operating expenses:                
Professional and outside services  7,156   8,325   33,030   35,867 
Software and data processing  4,974   3,943   19,535   13,729 
Deposit insurance and assessments  3,780   3,672   13,425   14,740 
Travel and meals  2,845   2,482   11,230   9,650 
Telecommunication services  2,335   3,023   10,583   13,080 
Postage and supplies  2,483   2,214   8,684   9,144 
Advertising and public relations  1,822   1,472   7,242   11,557 
ATM expense  1,263   544   4,626   4,227 
Loan collection and repossession expense  600   1,077   2,818   3,302 
Writedowns of foreclosed assets  910   1,841   2,419   2,996 
Writedown of signage due to strategic rebranding           4,915 
Amortization of intangibles  2,854   3,144   11,918   12,579 
Other  6,479   7,292   23,751   18,126 
Total non-interest expense $104,406  $94,893  $401,130  $380,752 


    
Bank OZK
Summary of Total Loans Outstanding
Unaudited
    
  December 31, 
  2019  2018 
    
  (Dollars in thousands) 
Real estate:              
Residential 1-4 family $998,632  5.7% $1,049,460  6.1%
Non-farm/non-residential  3,956,579  22.6   4,319,388  25.2 
Construction/land development  6,391,429  36.4   6,562,185  38.4 
Agricultural  230,076  1.3   165,088  1.0 
Multifamily residential  1,194,192  6.8   1,116,026  6.5 
Total real estate  12,770,908  72.8   13,212,147  77.2 
Commercial and industrial  661,952  3.8   823,417  4.8 
Consumer  2,934,534  16.8   2,345,863  13.7 
Other  1,164,649  6.6   736,396  4.3 
Total loans  17,532,043  100.0%  17,117,823  100.0%
Allowance for loan losses  (108,525)     (102,264)   
Net loans $17,423,518     $17,015,559    


Summary of Deposits
Unaudited
 
    
  December 31, 
  2019  2018 
    
  (Dollars in thousands) 
Non-interest bearing $2,795,251  15.1% $2,748,273  15.3%
Interest bearing:              
Transaction (NOW)  2,706,426  14.7   2,359,299  13.2 
Savings and money market  5,601,181  30.3   7,323,414  40.8 
Time deposits less than $100  3,321,446  18.0   2,297,101  12.8 
Time deposits of $100 or more  4,049,955  21.9   3,210,328  17.9 
Total deposits $18,474,259  100.0% $17,938,415  100.0%


       
Bank OZK
Selected Consolidated Financial Data
Unaudited
       
  Three Months Ended
December 31,
  Year Ended
December 31,
 
  2019  2018  % Change  2019  2018  % Change 
    
  (Dollars in thousands, except per share amounts) 
Income statement data:                        
Net interest income $214,977  $228,382   (5.9)% $884,181  $891,433   (0.8)%
Provision for loan losses  4,938   7,271   (32.1)  26,241   64,398   (59.3)
Non-interest income  30,406   27,560   10.3   107,527   107,775   (0.2)
Non-interest expense  104,406   94,893   10.0   401,130   380,752   5.4 
Net income available to common stockholders  100,806   115,031   (12.4)  425,906   417,106   2.1 
Common stock data:                        
Net income per share - diluted $0.78  $0.89   (12.4)% $3.30  $3.24   1.9%
Net income per share - basic  0.78   0.89   (12.4)  3.30   3.24   1.9 
Cash dividends per share  0.25   0.21   19.0   0.94   0.795   18.2 
Book value per share  32.19   29.32   9.8   32.19   29.32   9.8 
Tangible book value per share(1)  26.88   23.90   12.5   26.88   23.90   12.5 
Diluted shares outstanding (thousands)  129,036   128,666       129,006   128,740     
End of period shares outstanding (thousands)  128,951   128,611       128,951   128,611     
Balance sheet data at period end:                        
Total assets $23,559,400  $22,388,030   5.2% $23,559,400  $22,388,030   5.2%
Total loans  17,532,043   17,117,823   2.4   17,532,043   17,117,823   2.4 
Non-purchased loans  16,224,539   15,073,791   7.6   16,224,539   15,073,791   7.6 
Purchased loans  1,307,504   2,044,032   (36.0)  1,307,504   2,044,032   (36.0)
Allowance for loan losses  108,525   102,264   6.1   108,525   102,264   6.1 
Foreclosed assets  19,096   16,171   18.1   19,096   16,171   18.1 
Investment securities - AFS  2,277,389   2,862,340   (20.4)  2,277,389   2,862,340   (20.4)
Goodwill and other intangible assets, net  684,542   696,461   (1.7)  684,542   696,461   (1.7)
Deposits  18,474,259   17,938,415   3.0   18,474,259   17,938,415   3.0 
Repurchase agreements with customers  11,249   20,564   (45.3)  11,249   20,564   (45.3)
Other borrowings  351,387   96,692   263.4   351,387   96,692   263.4 
Subordinated notes  223,663   223,281   0.2   223,663   223,281   0.2 
Subordinated debentures  119,916   119,358   0.5   119,916   119,358   0.5 
Unfunded balance of closed loans  11,325,598   11,364,975   (0.3)  11,325,598   11,364,975   (0.3)
Total common stockholders’ equity  4,150,351   3,770,330   10.1   4,150,351   3,770,330   10.1 
Net unrealized gains (losses) on investment securities AFS included in common stockholders' equity  27,255   (34,105)      27,255   (34,105)    
Loan (including purchased loans) to deposit ratio  94.90%  95.43%      94.90%  95.43%    
Selected ratios:                        
Return on average assets(2)  1.74%  2.04%      1.87%  1.90%    
Return on average common stockholders’ equity(2)  9.73   12.36       10.72   11.59     
Return on average tangible common stockholders’ equity(1) (2)  11.68   15.24       12.98   14.41     
Average common equity to total average assets  17.86   16.54       17.45   16.42     
Net interest margin – FTE(2)  4.15   4.55       4.34   4.59     
Efficiency ratio  42.37   36.90       40.27   37.93     
Net charge-offs to average non-purchased loans(2) (3)  0.10   0.06       0.09   0.38     
Net charge-offs to average total loans(2)  0.12   0.07       0.11   0.34     
Nonperforming loans to total loans(4)  0.15   0.23       0.15   0.23     
Nonperforming assets to total assets(4)  0.18   0.23       0.18   0.23     
Allowance for loan losses to non-purchased loans(5)  0.66   0.67      0.66  0.67     
Other information:                        
Non-accrual loans(4) $23,221  $34,762      $23,221  $34,762     
Accruing loans - 90 days past due(4)                    
Troubled and restructured non-purchased loans - accruing(4)  656   627       656   627     
Impaired purchased loans  10,910   7,801       10,910   7,801     
                         
(1)Calculations of tangible book value per common share and return on average tangible common stockholders’ equity and the reconciliations to GAAP are included in the schedules accompanying this release.
(2)Ratios for interim periods annualized based on actual days.
(3)Excludes purchased loans and net charge-offs related to such loans.
(4)Excludes purchased loans, except for their inclusion in total assets.
(5)Excludes purchased loans and any allowance for such loans.


        
Bank OZK
Selected Consolidated Financial Data (continued)
Unaudited
        
  Three Months Ended     
  December 31,  September 30,     
  2019  2019  % Change 
   
 (Dollars in thousands, except per share amounts) 
Income statement data:            
Net interest income $214,997  $218,780   (1.7)%
Provision for loan losses  4,938   7,854   (37.1)
Non-interest income  30,406   26,446   15.0 
Non-interest expense  104,406   100,914   3.5 
Net income available to common stockholders  100,806   103,891   (3.0)
Common stock data:            
Net income per share - diluted $0.78  $0.81   (3.7)%
Net income per share - basic  0.78   0.81   (3.7)
Cash dividends per share  0.25   0.24   4.2 
Book value per share  32.19   31.63   1.8 
Tangible book value per share (1)  26.88   26.30   2.2 
Diluted shares outstanding (thousands)  129,036   129,012     
End of period shares outstanding (thousands)  128,951   128,946     
Balance sheet data at period end:            
Total assets $23,559,400  $23,402,679   0.7%
Total loans  17,532,043   17,734,851   (1.1)
Non-purchased loans  16,224,539   16,307,621   (0.5)
Purchased loans  1,307,504   1,427,230   (8.4)
Allowance for loan losses  108,525   109,001   (0.4)
Foreclosed assets  19,096   33,319   (42.7)
Investment securities - AFS  2,277,389   2,414,722   (5.7)
Goodwill and other intangible assets, net  684,542   687,397   (0.4)
Deposits  18,474,259   18,440,078   0.2 
Repurchase agreements with customers  11,249   12,156   (7.5)
Other borrowings  351,387   301,421   16.6 
Subordinated notes  223,663   223,567   0.1 
Subordinated debentures  119,916   119,775   0.1 
Unfunded balance of closed loans  11,325,598   11,429,918   (0.9)
Total common stockholders’ equity  4,150,351   4,078,324   1.8 
Net unrealized gains on investment securities AFS included in common stockholders' equity  27,255   27,648     
Loan (including purchased loans) to deposit ratio  94.90%  96.18%    
Selected ratios:            
Return on average assets(2)  1.74%  1.81%    
Return on average common stockholders’ equity(2)  9.73   10.22     
Return on average tangible common stockholders’ equity(1) (2)  11.68   12.33     
Average common equity to total average assets  17.86   17.69     
Net interest margin – FTE(2)  4.15   4.26     
Efficiency ratio  42.37   40.98     
Net charge-offs to average non-purchased loans(2) (3)  0.10   0.07     
Net charge-offs to average total loans(2)  0.12   0.12     
Nonperforming loans to total loans(4)  0.15   0.17     
Nonperforming assets to total assets(4)  0.18   0.26     
Allowance for loan losses to non-purchased loans(5)  0.66   0.66     
Other information:            
Non-accrual loans(4) $23,221  $25,552     
Accruing loans - 90 days past due(4)          
Troubled and restructured non-purchased loans - accruing(4)  656   1,510     
Impaired purchased loans  10,910   12,969     
             
(1)Calculations of tangible book value per common share and return on average tangible common stockholders’ equity and the reconciliations to GAAP are included in the schedules accompanying this release.
(2)Ratios for interim periods annualized based on actual days.
(3)Excludes purchased loans and net charge-offs related to such loans.
(4)Excludes purchased loans, except for their inclusion in total assets.
(5)Excludes purchased loans and any allowance for such loans.


                         
Bank OZK
Supplemental Quarterly Financial Data
Unaudited
                         
   3/31/18  6/30/18  9/30/18  12/31/18  3/31/19  6/30/19  9/30/19  12/31/19 
    
  (Dollars in thousands, except per share amounts) 
Earnings Summary:                                
Net interest income $217,776  $224,661  $220,614  $228,382  $225,888  $224,536  $218,780  $214,977 
Federal tax (FTE) adjustment  1,166   1,151   1,132   1,219   1,207   1,136   1,038   1,028 
Net interest income (FTE)  218,942   225,812   221,746   229,601   227,095   225,672   219,818   216,005 
Provision for loan losses  (5,567)  (9,610)  (41,949)  (7,271)  (6,681)  (6,769)  (7,854)  (4,938)
Non-interest income  28,707   27,386   24,121   27,560   24,072   26,603   26,446   30,406 
Non-interest expense  (93,810)  (89,107)  (102,942)  (94,893)  (96,678)  (99,131)  (100,914)  (104,406)
Pretax income (FTE)  148,272   154,481   100,976   154,997   147,808   146,375   137,496   137,067 
FTE adjustment  (1,166)  (1,151)  (1,132)  (1,219)  (1,207)  (1,136)  (1,038)  (1,028)
Provision for income taxes  (33,973)  (38,589)  (25,665)  (38,750)  (35,889)  (34,726)  (32,574)  (35,240)
Noncontrolling interest  11   10   1   3   (6)  (10)  7   7 
Net income available to common stockholders $113,144  $114,751  $74,180  $115,031  $110,706  $110,503  $103,891  $100,806 
Earnings per common share – diluted $0.88  $0.89  $0.58  $0.89  $0.86  $0.86  $0.81  $0.78 
Non-interest Income:                                
Service charges on deposit accounts $9,525  $9,704  $9,730  $10,585  $9,722  $10,291  $10,827  $10,933 
Trust income  1,793   1,591   1,730   1,821   1,730   1,839   1,975   2,010 
BOLI income:                                
  Increase in cash surrender value  4,852   5,259   5,321   5,269   5,162   5,178   5,208   5,167 
  Death benefits  2,728