Press Release

Bank OZK Announces Record First Quarter 2024 Earnings

4/17/2024 at 4:01 PM EDT

LITTLE ROCK, Ark., April 17, 2024 (GLOBE NEWSWIRE) -- Bank OZK (the “Bank”) (Nasdaq: OZK) today announced that net income available to common stockholders for the first quarter of 2024 was a record $171.5 million, a 3.4% increase from $165.9 million for the first quarter of 2023. Diluted earnings per common share for the first quarter of 2024 were a record $1.51, a 7.1% increase from $1.41 for the first quarter of 2023.

Pre-tax pre-provision net revenue (“PPNR”) was a record $272.7 million for the first quarter of 2024, a 10.7% increase from $246.4 million for the first quarter of 2023. The calculation of PPNR and the reconciliation to generally accepted accounting principles (“GAAP”) are included in the schedules accompanying this release.

Provision for credit losses was $42.9 million for the first quarter of 2024 compared to $35.8 million for the first quarter of 2023. The Bank’s total allowance for credit losses (“ACL”) was $536.9 million at March 31, 2024 compared to $393.8 million at March 31, 2023.

The Bank’s annualized returns on average assets, average common stockholders’ equity and average tangible common stockholders’ equity for the first quarter of 2024 were 1.96%, 14.16% and 16.38%, respectively, compared to 2.41%, 15.24% and 17.94%, respectively, for the first quarter of 2023. 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, “Our record net income and record diluted earnings per share in the quarter just ended are an excellent start to 2024. We feel that we are well positioned for the year, and we look forward to capitalizing on new opportunities.”

KEY BALANCE SHEET METRICS

Total loans were $28.03 billion at March 31, 2024, a 27.1% increase from $22.06 billion at March 31, 2023. Deposits were $29.41 billion at March 31, 2024, a 32.0% increase from $22.28 billion at March 31, 2023. Total assets were $36.03 billion at March 31, 2024, a 24.4% increase from $28.97 billion at March 31, 2023.

Common stockholders’ equity was $4.93 billion at March 31, 2024, an 11.4% increase from $4.42 billion at March 31, 2023. Tangible common stockholders’ equity was $4.27 billion at March 31, 2024, a 13.5% increase from $3.76 billion at March 31, 2023. The Bank’s ratio of total common stockholders’ equity to total assets was 13.68% at March 31, 2024, compared to 15.27% at March 31, 2023. The Bank's ratio of total tangible common stockholders’ equity to total tangible assets was 12.06% at March 31, 2024, compared to 13.28% at March 31, 2023.

Book value per common share was $43.44 at March 31, 2024, a 13.0% increase from $38.43 at March 31, 2023. Tangible book value per common share was $37.62 at March 31, 2024, a 15.1% increase from $32.68 at March 31, 2023.

The calculations of the Bank’s total common stockholders’ equity, tangible common stockholders’ equity, ratio of total tangible common stockholders’ equity to total tangible assets and tangible book value per common share, and the reconciliations to GAAP are included in the schedules accompanying this release.

ASSET QUALITY

The Bank’s ratio of nonperforming non-purchased loans to total loans (excluding purchased loans) was 0.20% at March 31, 2024, compared to 0.15% as of March 31, 2023. The Bank’s ratio of nonperforming assets to total assets (excluding purchased loans, except for their inclusion in total assets) was 0.33% at March 31, 2024, compared to 0.34% as of March 31, 2023. The Bank's annualized ratio of net charge-offs to average total loans was 0.11% for the quarter ended March 31, 2024, compared to 0.14% for the quarter ended March 31, 2023.

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 at 9:00 a.m. CT (10:00 a.m. ET) on Thursday, April 18, 2024. 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, return on average tangible common stockholders’ equity, tangible book value per common share, total common stockholders’ equity, total tangible common stockholders’ equity, the ratio of total tangible common stockholders’ equity to total tangible assets, and PPNR, to assess the strength of its capital, its ability to generate earnings on tangible capital invested by its shareholders and trends in its net revenue. These measures typically adjust GAAP financial measures to exclude intangible assets or provision for credit losses. Management believes presentation of these non-GAAP financial measures provides useful supplemental information which contributes to a proper understanding of the financial results and capital levels of the Bank. These non-GAAP disclosures should not be viewed as a substitute for financial results determined in accordance with GAAP, and they are not necessarily comparable to non-GAAP performance measures that may be presented by other banks. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are included in the tables at the end of this release under the caption “Reconciliation of Non-GAAP Financial Measures.”

FORWARD-LOOKING STATEMENTS

This press 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 in implementing the Bank’s growth, expansion and acquisition strategies, including obtaining regulatory or other approvals, delays in acquiring satisfactory sites, obtaining permits and designing, constructing and opening new offices, relocating, selling or closing existing offices, or integrating any 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 deposits or to retain or grow loans, including growth from unfunded closed loans; the ability to generate future revenue growth or to control future growth in non-interest expense; interest rate fluctuations, including changes in the yield curve between short-term and long-term interest rates or changes in the relative relationships of various interest rate indices; competitive factors and pricing pressures, including their effect on the Bank’s net interest margin or core spread; general economic, unemployment, credit market and real estate market conditions, and the effect of such conditions on the creditworthiness of borrowers, collateral values, the value of investment securities and asset recovery values; conditions within the banking industry; recently enacted and potential new laws and regulatory requirements or changes to existing laws and regulatory requirements, including changes affecting oversight of the financial services industry, changes intended to manage or mitigate climate and related environmental risks 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; uncertainty regarding changes in U.S. government monetary and fiscal policy; the impact of any U.S. federal government shutdown or budgetary crisis; FDIC special assessments or changes to regular assessments; the ability to keep pace with technological changes, including changes regarding artificial intelligence and maintaining cybersecurity; the impact of any failure in, or breach of, our operational or security systems or infrastructure, or those of third parties with whom we do business or others, including as a result of cyberattacks or an increase in the incidence or severity of fraud, illegal payments, security breaches or other illegal acts impacting the Bank, its customers or others; natural disasters; acts of war or terrorism; the potential impact of continuing inflationary pressures; the potential impact of supply chain disruptions; national or international political instability or military conflict, including the conflict in the Middle East and the ongoing war in Ukraine; competition for and costs of recruiting and retaining qualified personnel; impairment of our goodwill; 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, 2023 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 in approximately 240 offices in eight states including Arkansas, Georgia, Florida, North Carolina, Texas, New York, California and Mississippi and had $36.03 billion in total assets as of March 31, 2024. For more information, visit www.ozk.com.

 
Bank OZK
Consolidated Balance Sheets
Unaudited
 
    March 31, 2024   December 31, 2023
    (Dollars in thousands)
ASSETS        
Cash and cash equivalents   $ 2,323,813     $ 2,149,529  
Investment securities – available for sale (“AFS”)     3,072,391       3,244,371  
Federal Home Loan Bank of Dallas (“FHLB”) and other bankers’ bank stocks     14,484       50,400  
Non-purchased loans     27,781,091       26,195,030  
Purchased loans     250,257       264,045  
Allowance for loan losses     (365,935 )     (339,394 )
Net Loans     27,665,413       26,119,681  
Premises and equipment, net     681,865       676,821  
Foreclosed assets     60,782       61,720  
Accrued interest receivable     175,201       170,110  
Bank owned life insurance (“BOLI”)     813,996       808,490  
Goodwill     660,789       660,789  
Other, net     561,170       295,546  
Total assets   $ 36,029,904     $ 34,237,457  
         
LIABILITIES AND STOCKHOLDERS’ EQUITY        
Deposits:        
Demand non-interest bearing   $ 4,046,054     $ 4,095,874  
Savings and interest bearing transaction     9,504,445       9,074,296  
Time     15,855,571       14,234,973  
Total deposits     29,406,070       27,405,143  
Other borrowings     202,009       805,318  
Subordinated notes     347,961       347,761  
Subordinated debentures     121,652       121,652  
Reserve for losses on unfunded loan commitments     170,952       161,834  
Accrued interest payable and other liabilities     513,420       255,773  
Total liabilities   $ 30,762,064     $ 29,097,481  
         
Commitments and contingencies        
         
Stockholders’ equity:        
Preferred Stock: $0.01 par value; 100,000,000 shares authorized;
14,000,000 issued and outstanding at March 31, 2024 and
December 31, 2023
    338,980       338,980  
Common Stock: $0.01 par value; 300,000,000 shares authorized;
113,434,816 and 113,148,672 shares issued and outstanding at
March 31, 2024 and December 31, 2023, respectively
    1,134       1,131  
Additional paid-in capital     1,609,268       1,612,446  
Retained earnings     3,424,672       3,283,818  
Accumulated other comprehensive loss     (107,207 )     (97,374 )
Total stockholders’ equity before noncontrolling interest     5,266,847       5,139,001  
Noncontrolling interest     993       975  
Total stockholders’ equity     5,267,840       5,139,976  
Total liabilities and stockholders’ equity   $ 36,029,904     $ 34,237,457  


 
Bank OZK
Consolidated Statements of Income
Unaudited
 
    Three Months Ended
 March 31,
      2024       2023  
    (Dollars in thousands, except per share amounts)
Interest income:        
Non-purchased loans   $ 586,981     $ 414,896  
Purchased loans     4,960       6,518  
Investment securities:        
Taxable     9,333       10,171  
Tax-exempt     11,173       9,264  
Deposits with banks     24,606       7,870  
Total interest income     637,053       448,719  
         
Interest expense:        
Deposits     254,323       93,632  
Other borrowings     750       5,422  
Subordinated notes     2,574       2,574  
Subordinated debentures     2,472       2,239  
Total interest expense     260,119       103,867  
         
Net interest income     376,934       344,852  
Provision for credit losses     42,923       35,829  
Net interest income after provision for credit losses     334,011       309,023  
         
Non-interest income:        
Service charges on deposit accounts:        
NSF fees           991  
Overdraft fees     3,427       3,287  
All other service charges     6,839       6,502  
Trust income     2,324       2,033  
BOLI income     5,506       4,974  
Loan service, maintenance and other fees     6,343       4,076  
Gains on sales of other assets     459       343  
Net gains on investment securities     410       1,716  
Other     3,776       3,887  
Total non-interest income     29,084       27,809  
         
Non-interest expense:        
Salaries and employee benefits     69,564       63,249  
Net occupancy and equipment     17,974       17,870  
Other operating expenses     45,776       45,098  
Total non-interest expense     133,314       126,217  
         
Income before taxes     229,781       210,615  
Provision for income taxes     54,226       40,703  
Net income     175,555       169,912  
Earnings attributable to noncontrolling interest     (18 )     (12 )
Preferred stock dividends     4,047       4,047  
Net income available to common stockholders   $ 171,490     $ 165,853  
         
Basic earnings per common share   $ 1.51     $ 1.42  
         
Diluted earnings per common share   $ 1.51     $ 1.41  

Bank OZK
Consolidated Statements of Stockholders’ Equity
Unaudited

    Preferred Stock   Common Stock   Additional
Paid-in
Capital
  Retained Earnings   Accumulated Other Comprehensive (Loss) Income   Non-Controlling Interest   Total
    (Dollars in thousands, except per share amounts)
Three months ended March 31, 2024:                            
Balances - December 31, 2023   $ 338,980   $ 1,131     $ 1,612,446     $ 3,283,818     $ (97,374 )   $ 975   $ 5,139,976  
Cumulative effect of change in accounting principle                 12,690               12,690  
Balances - January 1, 2024     338,980     1,131       1,612,446       3,296,508       (97,374 )     975     5,152,666  
Net income                     175,555                 175,555  
Earnings attributable to noncontrolling interest                     (18 )           18      
Total other comprehensive loss                           (9,833 )         (9,833 )
Preferred stock dividends, $0.28906 per share                     (4,047 )               (4,047 )
Common stock dividends, $0.38 per share                     (43,326 )               (43,326 )
Issuance of 484,818 shares of common stock pursuant to stock-based compensation plans         5       179                       184  
Repurchase and cancellation of 184,415 shares of common stock withheld for tax pursuant to stock-based compensation plans         (2 )     (8,008 )                     (8,010 )
Stock-based compensation expense               4,651                       4,651  
Forfeitures of 14,259 shares of unvested restricted common stock                                      
Balances - March 31, 2024   $ 338,980   $ 1,134     $ 1,609,268     $ 3,424,672     $ (107,207 )   $ 993   $ 5,267,840  
                             


Three months ended March 31, 2023:                            
Balances - December 31, 2022   $ 338,980   $ 1,172     $ 1,753,941     $ 2,773,135     $ (177,649 )   $ 1,359   $ 4,690,938  
Net income                     169,912                 169,912  
Earnings attributable to noncontrolling interest                     (12 )           12      
Total other comprehensive income                           35,972           35,972  
Preferred stock dividends, $0.28906 per share                     (4,047 )               (4,047 )
Common stock dividends, $0.34 per share                     (40,084 )               (40,084 )
Issuance of 473,039 shares of common stock pursuant to stock-based
compensation plans
        5       518                       523  
Repurchase and cancellation of 2,348,138 shares of common stock under share repurchase program         (24 )     (85,315 )                     (85,339 )
Repurchase and cancellation of 215,362 shares of common stock withheld for tax pursuant to stock-based compensation plans.         (2 )     (8,672 )                     (8,674 )
Stock-based compensation expense               4,097                       4,097  
Forfeitures of 6,359 shares of unvested restricted common stock                                      
Balances - March 31, 2023   $ 338,980   $ 1,151     $ 1,664,569     $ 2,898,904     $ (141,677 )   $ 1,371   $ 4,763,298  


 
Bank OZK
Summary of Non-Interest Expense
Unaudited
 
  Three Months Ended
 March 31,
    2024       2023
  (Dollars in thousands)
Salaries and employee benefits $ 69,564     $ 63,249
Net occupancy and equipment   17,974       17,870
Other operating expenses:        
Software and data processing   11,115       9,283
Deposit insurance and assessments   8,250       4,148
Professional and outside services   5,970       5,105
Advertising and public relations   3,897       4,036
Amortization of CRA and tax credit investments (1)         6,414
Other   16,544       16,112
Total non-interest expense $ 133,314     $ 126,217

(1) Effective January 1, 2024, the Bank adopted ASU 2023-02, Investments-Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method, which resulted in the amortization of the Bank's CRA and tax credit investments being included in income tax expense instead of non-interest expense.

 
Bank OZK
Summary of Total Loans Outstanding
Unaudited
 
  March 31, 2024   December 31, 2023
  (Dollars in thousands)
Real estate:              
Residential 1-4 family $ 967,941     3.5 %   $ 961,338     3.6 %
Non-farm/non-residential   5,590,632     19.9       5,309,239     20.1  
Construction/land development   12,322,321     44.0       11,653,487     44.0  
Agricultural   252,232     0.9       256,423     1.0  
Multifamily residential   2,408,875     8.6       2,064,106     7.8  
Total real estate   21,542,001     76.9       20,244,593     76.5  
Commercial and industrial   1,355,125     4.8       1,269,610     4.8  
Consumer   3,169,016     11.3       2,965,042     11.2  
Other   1,965,206     7.0       1,979,830     7.5  
Total loans   28,031,348     100.0 %     26,459,075     100.0 %
Allowance for loan losses   (365,935 )         (339,394 )    
Net loans $ 27,665,413         $ 26,119,681      


 
Bank OZK
Allowance for Credit Losses
Unaudited
 
  Allowance for Loan Losses   Reserve for Losses on Outstanding Credit Commitments   Total Allowance for Credit Losses
  (Dollars in thousands)
Three months ended March 31, 2024:          
Balances – December 31, 2023 $ 339,394     $ 161,834   $ 501,228  
Net charge-offs   (7,264 )         (7,264 )
Provision for credit losses   33,805       9,118     42,923  
Balances – March 31, 2024 $ 365,935     $ 170,952   $ 536,887  
           
Three months ended March 31, 2023:          
Balances – December 31, 2022 $ 208,858     $ 156,419   $ 365,277  
Net charge-offs   (7,339 )         (7,339 )
Provision for credit losses   20,506       15,323     35,829  
Balances – March 31, 2023 $ 222,025     $ 171,742   $ 393,767  


 
Bank OZK
Deposits – By Customer Type
Unaudited
 
  March 31, 2024   December 31, 2023
  (Dollars in thousands)
Non-interest bearing $ 4,046,054   13.8 %   $ 4,095,874   14.9 %
Interest bearing:              
Consumer and commercial:              
Consumer – Non-Time   2,807,465   9.5       2,792,199   10.2  
Consumer – Time   11,545,695   39.3       10,216,217   37.3  
Commercial – Non-Time   2,860,322   9.7       2,439,175   8.9  
Commercial – Time   868,118   3.0       767,566   2.8  
Public funds   3,631,328   12.3       3,725,766   13.6  
Brokered   2,842,124   9.7       2,655,317   9.7  
Reciprocal   804,964   2.7       713,029   2.6  
Total deposits $ 29,406,070   100.0 %   $ 27,405,143   100.0 %


 
Bank OZK
Selected Consolidated Financial Data
Unaudited
 
  Three Months Ended
 March 31,
    2024       2023     %
Change
  (Dollars in thousands, except per share amounts)
Income statement data:          
Net interest income $ 376,934     $ 344,852     9.3 %
Provision for credit losses   42,923       35,829     19.8  
Non-interest income   29,084       27,809     4.6  
Non-interest expense   133,314       126,217     5.6  
Net income   175,555       169,912     3.3  
Preferred stock dividends   4,047       4,047      
Net income available to common stockholders   171,490       165,853     3.4  
Pre-tax pre-provision net revenue (1)   272,704       246,444     10.7  
Common share and per common share data:          
Diluted earnings per common share $ 1.51     $ 1.41     7.1 %
Basic earnings per common share   1.51       1.42     6.3  
Common stock dividends per share   0.38       0.34     11.8  
Book value per share   43.44       38.43     13.0  
Tangible book value per common share (1)   37.62       32.68     15.1  
Weighted-average diluted shares outstanding (thousands)   113,883       117,405     (3.0 )
End of period shares outstanding (thousands)   113,435       115,080     (1.4 )
Balance sheet data at period end:          
Total assets $ 36,029,904     $ 28,971,170     24.4 %
Total loans   28,031,348       22,062,006     27.1  
Non-purchased loans   27,781,091       21,700,941     28.0  
Purchased loans   250,257       361,065     (30.7 )
Allowance for loan losses   365,935       222,025     64.8  
Foreclosed assets   60,782       66,227     (8.2 )
Investment securities – AFS   3,072,391       3,422,031     (10.2 )
Goodwill and intangibles   660,789       662,354     (0.2 )
Deposits   29,406,070       22,282,983     32.0  
Other borrowings   202,009       994,079     (79.7 )
Subordinated notes   347,961       347,147     0.2  
Subordinated debentures   121,652       121,652      
Unfunded balance of outstanding credit commitments   20,458,796       20,965,040     (2.4 )
Reserve for losses on unfunded loan commitments   170,952       171,742     (0.5 )
Preferred stock   338,980       338,980      
Total common stockholders’ equity (1)   4,927,867       4,422,947     11.4  
Net unrealized losses on investment securities AFS included in stockholders' equity   (107,207 )     (141,677 )    
Loan (including purchased loans) to deposit ratio   95.33 %     99.01 %    
Selected ratios:          
Return on average assets (2)   1.96 %     2.41 %    
Return on average common stockholders' equity (1) (2)   14.16       15.24      
Return on average tangible common stockholders' equity (1) (2)   16.38       17.94      
Average common equity to total average assets   13.84       15.78      
Net interest margin – FTE (2)   4.71       5.54      
Efficiency ratio   32.59       33.63      
Net charge-offs to average non-purchased loans (2) (3)   0.11       0.15      
Net charge-offs to average total loans (2)   0.11       0.14      
Nonperforming loans to total loans (4)   0.20       0.15      
Nonperforming assets to total assets (4)   0.33       0.34      
Allowance for loan losses to total loans (5)   1.31       1.01      
Allowance for credit losses to total loans and unfunded credit commitments   1.11       0.92      
Other information:          
Non-accrual loans (4) $ 56,341     $ 33,371      
Accruing loans - 90 days past due (4)              

(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 OZK
Selected Consolidated Financial Data (continued)
Unaudited
 
  Three Months Ended
  March 31, 2024   December 31, 2023   %
Change
  (Dollars in thousands, except per share amounts)
Income statement data:          
Net interest income $ 376,934     $ 370,548     1.7 %
Provision for credit losses   42,923       43,832     (2.1 )
Non-interest income   29,084       37,027     (21.5 )
Non-interest expense   133,314       145,011     (8.1 )
Net income   175,555       175,132     0.2  
Preferred stock dividends   4,047       4,047      
Net income available to common stockholders   171,490       171,079     0.2  
Pre-tax pre-provision net revenue (1)   272,704       262,564     3.9  
Common share and per common share data:          
Diluted earnings per common share $ 1.51     $ 1.50     0.7 %
Basic earnings per common share   1.51       1.51      
Common stock dividends per share   0.38       0.37     2.7  
Book value per share   43.44       42.42     2.4  
Tangible book value per common share (1)   37.62       36.58     2.8  
Weighted-average diluted shares outstanding (thousands)   113,883       113,756     0.1  
End of period shares outstanding (thousands)   113,435       113,149     0.3  
Balance sheet data at period end:          
Total assets $ 36,029,904     $ 34,237,457     5.2 %
Total loans   28,031,348       26,459,075     5.9  
Non-purchased loans   27,781,091       26,195,030     6.1  
Purchased loans   250,257       264,045     (5.2 )
Allowance for loan losses   365,935       339,394     7.8  
Foreclosed assets   60,782       61,720     (1.5 )
Investment securities – AFS   3,072,391       3,244,371     (5.3 )
Goodwill and intangibles   660,789       660,789      
Deposits   29,406,070       27,405,143     7.3  
Other borrowings   202,009       805,318     (74.9 )
Subordinated notes   347,961       347,761     0.1  
Subordinated debentures   121,652       121,652      
Unfunded balance of outstanding credit commitments   20,458,796       20,561,029     (0.5 )
Reserve for losses on unfunded loan commitments   170,952       161,834     5.6  
Preferred stock   338,980       338,980      
Total common stockholders’ equity (1)   4,927,867       4,800,021     2.7  
Net unrealized losses on investment securities AFS included in stockholders' equity   (107,207 )     (97,374 )    
Loan (including purchased loans) to deposit ratio   95.33 %     96.55 %    
Selected ratios:          
Return on average assets (2)   1.96 %     2.04 %    
Return on average common stockholders' equity (1) (2)   14.16       14.58      
Return on average tangible common stockholders' equity (1) (2)   16.38       16.99      
Average common equity to total average assets   13.84       13.99      
Net interest margin – FTE (2)   4.71       4.82      
Efficiency ratio   32.59       35.33      
Net charge-offs to average non-purchased loans (2) (3)   0.11       0.07      
Net charge-offs to average total loans (2)   0.11       0.06      
Nonperforming loans to total loans (4)   0.20       0.23      
Nonperforming assets to total assets (4)   0.33       0.36      
Allowance for loan losses to total loans (5)   1.31       1.28      
Allowance for credit losses to total loans and unfunded credit commitments   1.11       1.07      
Other information:          
Non-accrual loans (4) $ 56,341     $ 60,982      
Accruing loans - 90 days past due (4)              

(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 OZK
Supplemental Quarterly Financial Data
Unaudited
 
  3/31/24   12/31/23   9/30/23   6/30/23   3/31/23
  (Dollars in thousands)
Earnings summary:                  
Net interest income $ 376,934     $ 370,548     $ 367,261     $ 356,824     $ 344,852  
Federal tax (FTE) adjustment   3,030       2,925       2,632       2,602       2,603  
Net interest income (FTE)   379,964       373,473       369,893       359,426       347,455  
Provision for credit losses   (42,923 )     (43,832 )     (44,036 )     (41,774 )     (35,829 )
Non-interest income   29,084       37,027       25,727       31,987       27,809  
Non-interest expense   (133,314 )     (145,011 )     (128,978 )     (129,355 )     (126,217 )
Pre-tax income (FTE)   232,811       221,657       222,606       220,284       213,218  
FTE adjustment   (3,030 )     (2,925 )     (2,632 )     (2,602 )     (2,603 )
Provision for income taxes   (54,226 )     (43,600 )     (46,144 )     (45,717 )     (40,703 )
Noncontrolling interest   (18 )     (6 )     (37 )     (1 )     (12 )
Preferred stock dividend   (4,047 )     (4,047 )     (4,047 )     (4,047 )     (4,047 )
Net income available to common stockholders $ 171,490     $ 171,079     $ 169,746     $ 167,917     $ 165,853  
Earnings per common share – diluted $ 1.51     $ 1.50     $ 1.49     $ 1.47     $ 1.41  
Pre-tax pre-provision net revenue (1) $ 272,704     $ 262,564     $ 264,010     $ 259,456     $ 246,444  
Selected balance sheet data at period end:                  
Total assets $ 36,029,904     $ 34,237,457     $ 32,767,328     $ 30,761,870     $ 28,971,170  
Non-purchased loans   27,781,091       26,195,030       25,051,214       23,291,785       21,700,941  
Purchased loans   250,257       264,045       280,526       315,661       361,065  
Investment securities – AFS   3,072,391       3,244,371       3,153,817       3,262,366       3,422,031  
Deposits   29,406,070       27,405,143       25,552,856       23,983,397       22,282,983  
Unfunded balance of outstanding credit commitments   20,458,796       20,561,029       20,625,371       21,119,761       20,965,040  
Allowance for credit losses:                  
Balance at beginning of period $ 501,228     $ 461,486     $ 426,820     $ 393,767     $ 365,277  
Net charge-offs   (7,264 )     (4,090 )     (9,370 )     (8,721 )     (7,339 )
Provision for credit losses   42,923       43,832       44,036       41,774       35,829  
Balance at end of period $ 536,887     $ 501,228     $ 461,486     $ 426,820     $ 393,767  
Allowance for loan losses $ 365,935     $ 339,394     $ 303,358     $ 263,188     $ 222,025  
Reserve for losses on unfunded loan commitments   170,952       161,834       158,128       163,632       171,742  
Total allowance for credit losses $ 536,887     $ 501,228     $ 461,486     $ 426,820     $ 393,767  
Selected ratios:                  
Net interest margin – FTE (2)   4.71 %     4.82 %     5.05 %     5.32 %     5.54 %
Efficiency ratio   32.59       35.33       32.60       33.05       33.63  
Net charge-offs to average non-purchased loans (2) (3)   0.11       0.07       0.17       0.03       0.15  
Net charge-offs to average total loans (2)   0.11       0.06       0.15       0.15       0.14  
Nonperforming loans to total loans (4)   0.20       0.23       0.25       0.15       0.15  
Nonperforming assets to total assets (4)   0.33       0.36       0.40       0.32       0.34  
Allowance for loan losses to total loans (5)   1.31       1.28       1.20       1.11       1.01  
Allowance for credit losses to total loans and unfunded credit commitments   1.11       1.07       1.00       0.95       0.92  
Loans past due 30 days or more, including past due non-accrual loans, to total loans (4)   0.17       0.20       0.21       0.14       0.15  

(1)  Calculations of pre-tax pre-provision net revenue and the reconciliation to GAAP are included in the schedules accompanying this release.
(2)  Ratios for interim periods annualized based on actual days.
(3)  Excludes purchased loans and net charge-offs related to such loans.
(4)  Excludes purchased loans, except for their inclusion in total assets.
(5)  Excludes reserve for losses on unfunded loan commitments.

 
Bank OZK
Average Consolidated Balance Sheets and Net Interest Analysis – FTE
Unaudited
 
  Three Months Ended March 31,
    2024       2023  
  Average Balance   Income/ Expense   Yield/Rate   Average Balance   Income/ Expense   Yield/Rate
  (Dollars in thousands)
ASSETS                      
Interest earning assets:                      
Interest earning deposits $ 1,861,871   $ 24,606   5.32 %   $ 739,521   $ 7,870   4.32 %
Investment securities:                      
Taxable   2,052,980     9,333   1.83       2,450,756     10,171   1.68  
Tax-exempt – FTE   1,172,116     14,144   4.85       1,027,806     11,727   4.63  
Non-purchased loans – FTE   27,116,207     587,040   8.71       20,850,529     415,037   8.07  
Purchased loans   257,788     4,960   7.74       370,887     6,518   7.13  
Total earning assets – FTE   32,460,962     640,083   7.93       25,439,499     451,323   7.19  
Non-interest earning assets   2,747,337             2,517,047        
Total assets $ 35,208,299           $ 27,956,546        
LIABILITIES AND STOCKHOLDERS’ EQUITY                
Interest bearing liabilities:                      
Deposits:                      
Savings and interest bearing transaction $ 9,182,745   $ 66,902   2.93 %   $ 9,733,499   $ 42,515   1.77 %
Time deposits   15,476,373     187,421   4.87       7,563,013     51,117   2.74  
Total interest bearing deposits   24,659,118     254,323   4.15       17,296,512     93,632   2.20  
Other borrowings   85,041     750   3.55       467,098     5,422   4.71  
Subordinated notes   347,864     2,574   2.98       347,049     2,574   3.01  
Subordinated debentures   121,652     2,472   8.18       121,638     2,239   7.47  
Total interest bearing liabilities   25,213,675     260,119   4.15       18,232,297     103,867   2.31  
Non-interest bearing liabilities:                      
Non-interest bearing deposits   4,100,769             4,471,407        
Other non-interest bearing liabilities   682,455             499,997        
Total liabilities   29,996,899             23,203,701        
Total stockholders’ equity before noncontrolling interest   5,210,418             4,751,481        
Noncontrolling interest   982             1,364        
Total liabilities and stockholders’ equity $ 35,208,299           $ 27,956,546        
Net interest income – FTE     $ 379,964           $ 347,456    
Net interest margin – FTE         4.71 %           5.54 %
Core spread (1)         4.56 %           5.87 %

(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 OZK
Reconciliation 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
March 31,
  Three Months Ended
December 31,
    2024       2023       2023  
  (Dollars in thousands)
Net income available to common stockholders $ 171,490     $ 165,853     $ 171,079  
Average stockholders’ equity before noncontrolling interest $ 5,210,418     $ 4,751,481     $ 4,995,217  
Less average preferred stock   (338,980 )     (338,980 )     (338,980 )
Total average common stockholders’ equity   4,871,438       4,412,501       4,656,237  
Less average intangible assets:          
Goodwill   (660,789 )     (660,789 )     (660,789 )
Core deposit and other intangible assets, net of accumulated amortization         (2,243 )      
Total average intangibles   (660,789 )     (663,032 )     (660,789 )
Average tangible common stockholders’ equity $ 4,210,649     $ 3,749,469     $ 3,995,448  
Return on average common stockholders’ equity(1)   14.16 %     15.24 %     14.58 %
Return on average tangible common stockholders’ equity(1)   16.38 %     17.94 %     16.99 %

(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
 
  March 31,   December 31,
    2024       2023       2023  
  (In thousands, except per share amounts)
Total stockholders’ equity before noncontrolling interest $ 5,266,847     $ 4,761,927     $ 5,139,001  
Less preferred stock   (338,980 )     (338,980 )     (338,980 )
Total common stockholders’ equity $ 4,927,867     $ 4,422,947     $ 4,800,021  
Less intangible assets:          
Goodwill   (660,789 )     (660,789 )     (660,789 )
Core deposit and other intangible assets, net of accumulated amortization         (1,565 )      
Total intangibles   (660,789 )     (662,354 )     (660,789 )
Total tangible common stockholders’ equity $ 4,267,078     $ 3,760,593     $ 4,139,232  
Shares of common stock outstanding   113,435       115,080       113,149  
Book value per common share $ 43.44     $ 38.43     $ 42.42  
Tangible book value per common share $ 37.62     $ 32.68     $ 36.58  


 
Calculation of Total Common Stockholders’ Equity,
Total Tangible Common Stockholders’ Equity
and the Ratio of Total Tangible Common Stockholders’ Equity
to Total Tangible Assets

Unaudited
 
  March 31,
    2024       2023  
  (Dollars in thousands)
Total stockholders’ equity before noncontrolling interest $ 5,266,847     $ 4,761,927  
Less preferred stock   (338,980 )     (338,980 )
Total common stockholders’ equity $ 4,927,867     $ 4,422,947  
Less intangible assets:      
Goodwill   (660,789 )     (660,789 )
Core deposit and other intangible assets, net of accumulated amortization         (1,565 )
Total intangibles   (660,789 )     (662,354 )
Total tangible common stockholders’ equity   4,267,078       3,760,593  
Total assets $ 36,029,904     $ 28,971,170  
Less intangible assets:      
Goodwill $ (660,789 )   $ (660,789 )
Core deposit and other intangible assets, net of accumulated amortization         (1,565 )
Total intangibles   (660,789 )     (662,354 )
Total tangible assets $ 35,369,115     $ 28,308,816  
Ratio of total common stockholders’ equity to total assets   13.68 %     15.27 %
Ratio of total tangible common stockholders’ equity to total tangible assets   12.06 %     13.28 %


   
Calculation of Pre-Tax Pre-Provision Net Revenue
Unaudited
 
   
  Three Months Ended  
  March 31,   December 31,   September 30,   June 30,   March 31,  
    2024     2023     2023     2023     2023  
  (Dollars in thousands)  
Net income available to common stockholders $ 171,490   $ 171,079   $ 169,746   $ 167,917   $ 165,853  
Preferred stock dividends   4,047     4,047     4,047     4,047     4,047  
Earnings attributable to noncontrolling interest   18     6     37     1     12  
Provision for income taxes   54,226     43,600     46,144     45,717     40,703  
Provision for credit losses   42,923     43,832     44,036     41,774     35,829  
Pre-tax pre-provision net revenue $ 272,704   $ 262,564   $ 264,010   $ 259,456   $ 246,444  


   
Investor Contact: Jay Staley (501) 906-7842
Media Contact: Michelle Rossow (501) 906-3922

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Source: Bank OZK