Bank OZK Announces Record Fourth Quarter and Full Year 2021 Earnings
For the full year of 2021, net income was a record
As a result of improved economic conditions and prospects for improvement in the U. S. economy, management recorded negative provision for credit losses of
Pre-tax pre-provision net revenue (“PPNR”) was
The Bank’s annualized returns on average assets, average common stockholders’ equity and average tangible common stockholders’ equity for the fourth quarter of 2021 were 2.25%, 13.08% and 15.34%, respectively, compared to 1.79%, 11.36% and 13.53%, respectively, for the fourth quarter of 2020. The Bank’s returns on average assets, average common stockholder’s equity and average tangible common stockholders’ equity for the full year of 2021 were 2.17%, 13.01% and 15.32%, respectively, compared to 1.13%, 7.04% and 8.41%, respectively, for the full year of 2020. 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.
KEY BALANCE SHEET METRICS
Total loans were
Deposits were
Common stockholders’ equity was
The Bank’s ratio of total common stockholders’ equity to total assets was 16.95% at
PREFERRED STOCK OFFERING
On
SUBORDINATED DEBT REDEMPTION AND OFFERING
In
In
STOCK REPURCHASE PROGRAM
In
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
The Bank files with the
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 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 release and other communications by the Bank include certain “forward-looking statements” regarding the Bank’s plans, expectations, thoughts, beliefs, estimates, goals and outlook for the future that are intended to be covered by the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on management’s expectations as well as certain assumptions and estimates made by, and information available to, management at the time. Those statements are not guarantees of future results or performance and are subject to certain known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those expressed in, or implied by, such forward-looking statements. These risks, uncertainties and other factors include, but are not limited to: potential delays or other problems implementing the Bank’s growth, expansion and acquisition strategies, including delays in identifying satisfactory sites, hiring or retaining qualified personnel, obtaining regulatory or other approvals, obtaining permits and designing, constructing and opening new offices or relocating, selling or closing existing offices; the ability to enter into and/or close additional acquisitions; the availability of and access to capital; possible downgrades in the Bank’s credit ratings or outlook which could increase the costs 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 phase-out of the London Interbank Offered Rate (“LIBOR”) or other changes involving LIBOR; competitive factors and pricing pressures, including their effect on the Bank’s net interest margin or core spread; general economic, unemployment, credit market and real estate market conditions, and the effect of such conditions on the creditworthiness of borrowers, collateral values, the value of investment securities and asset recovery values; changes in legal, financial and/or regulatory requirements; recently enacted and potential legislation and regulatory actions and the costs and expenses to comply with new and/or existing legislation and regulatory actions, including those in response to the COVID-19 pandemic such as the Coronavirus Aid, Relief and Economic Security Act, the Consolidated Appropriations Act of 2021, the American Rescue Plan Act of 2021, and any similar or related laws, rules and regulations; the impact of any future federal government shutdown and uncertainty regarding the federal government’s debt limit or changes in
GENERAL INFORMATION
Investor Contact: | |||
Media Contact: |
Consolidated Balance Sheets
Unaudited
2021 | 2020 | |||||||
(Dollars in thousands, except per share amounts) | ||||||||
ASSETS | ||||||||
Cash and cash equivalents | $ | 2,053,829 | $ | 2,393,662 | ||||
Investment securities ― available for sale ("AFS") | 3,916,733 | 3,405,351 | ||||||
Investment securities ― trading | 14,957 | — | ||||||
40,788 | 38,486 | |||||||
Non-purchased loans | 17,791,610 | 18,401,495 | ||||||
Purchased loans | 516,215 | 807,673 | ||||||
Allowance for loan losses | (217,380 | ) | (295,824 | ) | ||||
Net loans | 18,090,445 | 18,913,344 | ||||||
Premises and equipment, net | 695,857 | 738,842 | ||||||
Foreclosed assets | 5,744 | 11,085 | ||||||
Accrued interest receivable | 83,025 | 88,077 | ||||||
Bank owned life insurance (“BOLI”) | 774,822 | 758,071 | ||||||
669,063 | 675,458 | |||||||
Other, net | 185,167 | 140,220 | ||||||
Total assets | $ | 26,530,430 | $ | 27,162,596 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Deposits: | ||||||||
Demand non-interest bearing | $ | 4,983,788 | $ | 3,996,546 | ||||
Savings and interest bearing transaction | 9,245,727 | 8,160,982 | ||||||
Time | 5,979,619 | 9,292,828 | ||||||
Total deposits | 20,209,134 | 21,450,356 | ||||||
Repurchase agreements with customers | 6,115 | 8,013 | ||||||
Other borrowings | 750,206 | 750,928 | ||||||
Subordinated notes | 346,133 | 224,047 | ||||||
Subordinated debentures | 121,033 | 120,475 | ||||||
Reserve for losses on unfunded loan commitments | 71,609 | 81,481 | ||||||
Accrued interest payable and other liabilities | 186,840 | 251,940 | ||||||
Total liabilities | 21,691,070 | 22,887,240 | ||||||
Commitments and contingencies | ||||||||
Stockholders’ equity: | ||||||||
Preferred stock; 14,000,000 and no shares issued and outstanding at 2021 and 2020, respectively |
338,980 | — | ||||||
Common stock; 125,443,748 and 129,350,448 shares issued and outstanding at |
1,254 | 1,294 | ||||||
Additional paid-in capital | 2,093,702 | 2,265,850 | ||||||
Retained earnings | 2,378,466 | 1,946,875 | ||||||
Accumulated other comprehensive income | 23,841 | 58,252 | ||||||
Total stockholders’ equity before noncontrolling interest | 4,836,243 | 4,272,271 | ||||||
Noncontrolling interest | 3,117 | 3,085 | ||||||
Total stockholders’ equity | 4,839,360 | 4,275,356 | ||||||
Total liabilities and stockholders’ equity | $ | 26,530,430 | $ | 27,162,596 |
Consolidated Statements of Income
Unaudited
Three Months Ended |
Year Ended |
||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||
(Dollars in thousands, except per share amounts) | |||||||||||||||
Interest income: | |||||||||||||||
Non-purchased loans | $ | 256,021 | $ | 243,064 | $ | 972,660 | $ | 944,354 | |||||||
Purchased loans | 11,190 | 16,069 | 46,174 | 70,812 | |||||||||||
Investment securities: | |||||||||||||||
Taxable | 9,448 | 9,066 | 36,234 | 40,547 | |||||||||||
Tax-exempt | 2,869 | 4,767 | 13,729 | 19,403 | |||||||||||
Deposits with banks and federal funds sold | 953 | 428 | 2,510 | 5,665 | |||||||||||
Total interest income | 280,481 | 273,394 | 1,071,307 | 1,080,781 | |||||||||||
Interest expense: | |||||||||||||||
Deposits | 9,514 | 30,607 | 64,422 | 171,813 | |||||||||||
Repurchase agreements with customers | 3 | 6 | 17 | 23 | |||||||||||
Other borrowings | 1,017 | 1,011 | 4,012 | 3,179 | |||||||||||
Subordinated notes | 2,631 | 3,207 | 9,386 | 12,758 | |||||||||||
Subordinated debentures | 935 | 963 | 3,750 | 4,384 | |||||||||||
Total interest expense | 14,100 | 35,794 | 81,587 | 192,157 | |||||||||||
Net interest income | 266,381 | 237,600 | 989,720 | 888,624 | |||||||||||
Provision for credit losses | (7,992 | ) | 6,750 | (77,938 | ) | 203,639 | |||||||||
Net interest income after provision for credit losses | 274,373 | 230,850 | 1,067,658 | 684,985 | |||||||||||
Non-interest income: | |||||||||||||||
Service charges on deposit accounts: | |||||||||||||||
NSF/Overdraft fees | 4,315 | 4,024 | 14,962 | 14,782 | |||||||||||
All other service charges | 7,149 | 5,959 | 27,656 | 22,917 | |||||||||||
Trust income | 2,141 | 1,909 | 8,506 | 7,544 | |||||||||||
BOLI income: | |||||||||||||||
Increase in cash surrender value | 4,901 | 5,034 | 19,640 | 20,239 | |||||||||||
Death benefits | 618 | — | 2,028 | 608 | |||||||||||
Loan service, maintenance and other fees | 3,148 | 3,797 | 13,959 | 14,257 | |||||||||||
Gains on sales of other assets | 1,330 | 5,189 | 9,962 | 6,863 | |||||||||||
Net gains on investment securities | 504 | — | 504 | 4,467 | |||||||||||
Other | 5,589 | 2,749 | 18,321 | 12,931 | |||||||||||
Total non-interest income | 29,695 | 28,661 | 115,538 | 104,608 | |||||||||||
Non-interest expense: | |||||||||||||||
Salaries and employee benefits | 55,034 | 53,832 | 214,567 | 206,834 | |||||||||||
Net occupancy and equipment | 17,004 | 15,617 | 66,801 | 63,379 | |||||||||||
Other operating expenses | 38,068 | 33,945 | 148,907 | 143,200 | |||||||||||
Total non-interest expense | 110,106 | 103,394 | 430,275 | 413,413 | |||||||||||
Income before taxes | 193,962 | 156,117 | 752,921 | 376,180 | |||||||||||
Provision for income taxes | 44,197 | 35,607 | 173,888 | 84,314 | |||||||||||
Net income | 149,765 | 120,510 | 579,033 | 291,866 | |||||||||||
Earnings attributable to noncontrolling interest | (5 | ) | 3 | (32 | ) | 32 | |||||||||
Net income available to common stockholders | $ | 149,760 | $ | 120,513 | $ | 579,001 | $ | 291,898 | |||||||
Basic earnings per common share | $ | 1.17 | $ | 0.93 | $ | 4.49 | $ | 2.26 | |||||||
Diluted earnings per common share | $ | 1.17 | $ | 0.93 | $ | 4.47 | $ | 2.26 |
Consolidated Statements of Stockholders’ Equity
Unaudited
Preferred Stock |
Common Stock |
Additional Paid-In Capital |
Retained Earnings |
Accumulated Other Comprehensive Income |
Non- Controlling Interest |
Total | ||||||||||||||||||||||
(Dollars in thousands, except per share amounts) | ||||||||||||||||||||||||||||
Three months ended |
||||||||||||||||||||||||||||
Balances – |
$ | — | $ | 1,288 | $ | 2,245,012 | $ | 2,266,234 | $ | 40,706 | $ | 3,112 | $ | 4,556,352 | ||||||||||||||
Net income | — | — | — | 149,765 | — | — | 149,765 | |||||||||||||||||||||
Earnings attributable to noncontrolling interest |
— | — | — | (5 | ) | — | 5 | — | ||||||||||||||||||||
Total other comprehensive loss | — | — | — | — | (16,865 | ) | — | (16,865 | ) | |||||||||||||||||||
Common stock dividends, share |
— | — | — | (37,528 | ) | — | — | (37,528 | ) | |||||||||||||||||||
Issuance of 14,000,000 shares of preferred stock, net of offering costs |
338,980 | — | — | — | — | — | 338,980 | |||||||||||||||||||||
Issuance of 31,400 shares of common stock for exercise of stock options |
— | — | 1,131 | — | — | — | 1,131 | |||||||||||||||||||||
Repurchase and cancellation of 3,387,421 shares of common stock under share repurchase program |
— | (34 | ) | (156,410 | ) | — | — | — | (156,444 | ) | ||||||||||||||||||
Stock-based compensation expense | — | — | 3,969 | — | — | — | 3,969 | |||||||||||||||||||||
Forfeitures of 18,050 shares of unvested restricted common stock |
— | — | — | — | — | — | — | |||||||||||||||||||||
Balances – |
$ | 338,980 | $ | 1,254 | $ | 2,093,702 | $ | 2,378,466 | $ | 23,841 | $ | 3,117 | $ | 4,839,360 | ||||||||||||||
Year ended |
||||||||||||||||||||||||||||
Balances – |
$ | — | $ | 1,294 | $ | 2,265,850 | $ | 1,946,875 | $ | 58,252 | $ | 3,085 | $ | 4,275,356 | ||||||||||||||
Net income | — | — | — | 579,033 | — | — | 579,033 | |||||||||||||||||||||
Earnings attributable to noncontrolling interest |
— | — | — | (32 | ) | — | 32 | — | ||||||||||||||||||||
Total other comprehensive loss | — | — | — | — | (34,411 | ) | — | (34,411 | ) | |||||||||||||||||||
Common stock dividends, share |
— | — | — | (147,410 | ) | — | — | (147,410 | ) | |||||||||||||||||||
Issuance of 14,000,000 shares of preferred stock, net of offering costs |
338,980 | — | — | — | — | — | 338,980 | |||||||||||||||||||||
Issuance of 207,650 shares of common stock for exercise of stock options |
— | 2 | 7,224 | — | — | — | 7,226 | |||||||||||||||||||||
Issuance of 332,831 shares of unvested restricted common stock |
— | 3 | (3 | ) | — | — | — | — | ||||||||||||||||||||
Repurchase and cancellation of 4,275,988 shares of common stock under share repurchase program |
— | (43 | ) | (193,401 | ) | — | — | — | (193,444 | ) | ||||||||||||||||||
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 | — | — | 16,007 | — | — | — | 16,007 | |||||||||||||||||||||
Forfeitures of 115,300 shares of unvested restricted common stock |
— | (1 | ) | 1 | — | — | — | — | ||||||||||||||||||||
Balances – |
$ | 338,980 | $ | 1,254 | $ | 2,093,702 | $ | 2,378,466 | $ | 23,841 | $ | 3,117 | $ | 4,839,360 |
Consolidated Statements of Stockholders’ Equity
Unaudited
Common Stock |
Additional Paid-In Capital |
Retained Earnings |
Accumulated Other Comprehensive Income |
Non- Controlling Interest |
Total | |||||||||||||||||||
(Dollars in thousands, except per share amounts) | ||||||||||||||||||||||||
Three months ended |
||||||||||||||||||||||||
Balances – |
$ | 1,293 | $ | 2,261,864 | $ | 1,862,012 | $ | 61,116 | $ | 3,088 | $ | 4,189,373 | ||||||||||||
Net income | — | — | 120,510 | — | — | 120,510 | ||||||||||||||||||
Earnings attributable to noncontrolling interest |
— | — | 3 | — | (3 | ) | — | |||||||||||||||||
Total other comprehensive loss | — | — | — | (2,864 | ) | — | (2,864 | ) | ||||||||||||||||
Common stock dividends, |
— | — | (35,650 | ) | — | — | (35,650 | ) | ||||||||||||||||
Issuance of 39,900 shares of common stock for exercise of stock options |
— | 991 | — | — | — | 991 | ||||||||||||||||||
Stock-based compensation expense | — | 2,996 | — | — | — | 2,996 | ||||||||||||||||||
Forfeitures of 31,525 shares of unvested restricted common stock |
1 | (1 | ) | — | — | — | — | |||||||||||||||||
Balances – |
$ | 1,294 | $ | 2,265,850 | $ | 1,946,875 | $ | 58,252 | $ | 3,085 | $ | 4,275,356 | ||||||||||||
Year ended |
||||||||||||||||||||||||
Balances – |
$ | 1,289 | $ | 2,251,824 | $ | 1,869,983 | $ | 27,255 | $ | 3,117 | $ | 4,153,468 | ||||||||||||
Cumulative effect of change in accounting principle |
— | — | (75,344 | ) | — | — | (75,344 | ) | ||||||||||||||||
Balances – |
1,289 | 2,251,824 | 1,794,639 | 27,255 | 3,117 | 4,078,124 | ||||||||||||||||||
Net income | — | — | 291,866 | — | — | 291,866 | ||||||||||||||||||
Earnings attributable to noncontrolling interest |
— | — | 32 | — | (32 | ) | — | |||||||||||||||||
Total other comprehensive income | — | — | — | 30,997 | — | 30,997 | ||||||||||||||||||
Common stock dividends, |
— | — | (139,662 | ) | — | — | (139,662 | ) | ||||||||||||||||
Issuance of 44,200 shares of common stock for exercise of stock options |
— | 1,036 | — | — | — | 1,036 | ||||||||||||||||||
Issuance of 493,761 shares of unvested restricted common stock |
5 | (5 | ) | — | — | — | — | |||||||||||||||||
Repurchase and cancellation of 61,873 shares of common stock withheld for taxes pursuant to restricted stock vesting |
(1 | ) | (1,852 | ) | — | — | — | (1,853 | ) | |||||||||||||||
Stock-based compensation expense | — | 14,848 | — | — | — | 14,848 | ||||||||||||||||||
Forfeitures of 76,664 shares of unvested restricted common stock |
1 | (1 | ) | — | — | — | — | |||||||||||||||||
Balances – |
$ | 1,294 | $ | 2,265,850 | $ | 1,946,875 | $ | 58,252 | $ | 3,085 | $ | 4,275,356 |
Summary of Non-Interest Expense
Unaudited
Three Months Ended |
Year Ended |
|||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
(Dollars in thousands) | ||||||||||||||||
Salaries and employee benefits | $ | 55,034 | $ | 53,832 | $ | 214,567 | $ | 206,834 | ||||||||
Net occupancy and equipment | 17,004 | 15,617 | 66,801 | 63,379 | ||||||||||||
Other operating expenses: | ||||||||||||||||
Professional and outside services | 7,880 | 6,988 | 29,013 | 29,605 | ||||||||||||
Software and data processing | 6,165 | 5,729 | 23,860 | 21,279 | ||||||||||||
Deposit insurance and assessments | 2,125 | 3,647 | 11,185 | 15,247 | ||||||||||||
Telecommunication services | 2,064 | 2,296 | 8,427 | 9,159 | ||||||||||||
Postage and supplies | 1,909 | 1,709 | 6,627 | 7,462 | ||||||||||||
ATM expense | 1,639 | 1,490 | 6,255 | 5,256 | ||||||||||||
Travel and meals | 1,883 | 835 | 5,694 | 4,336 | ||||||||||||
Writedowns of foreclosed and other assets | 985 | 1,582 | 3,461 | 3,669 | ||||||||||||
Loan collection and repossession expense | 587 | 481 | 2,044 | 3,062 | ||||||||||||
Advertising and public relations | 1,151 | 1,086 | 2,772 | 6,050 | ||||||||||||
Amortization of intangibles | 1,517 | 1,794 | 6,394 | 9,085 | ||||||||||||
Amortization of CRA and tax credit investments | 2,755 | 821 | 15,078 | 8,279 | ||||||||||||
Other | 7,408 | 5,487 | 28,097 | 20,711 | ||||||||||||
Total non-interest expense | $ | 110,106 | $ | 103,394 | $ | 430,275 | $ | 413,413 |
Summary of Total Loans Outstanding
Unaudited
2021 | 2020 | |||||||||||||||
(Dollars in thousands) | ||||||||||||||||
Real estate: | ||||||||||||||||
Residential 1-4 family | $ | 887,024 | 4.8 | % | $ | 911,115 | 4.7 | % | ||||||||
Non-farm/non-residential | 3,782,892 | 20.7 | 4,267,147 | 22.2 | ||||||||||||
Construction/land development | 8,246,674 | 45.0 | 7,993,467 | 41.6 | ||||||||||||
Agricultural | 247,727 | 1.4 | 204,868 | 1.1 | ||||||||||||
Multifamily residential | 934,845 | 5.1 | 856,297 | 4.5 | ||||||||||||
Total real estate | 14,099,162 | 77.0 | 14,232,894 | 74.1 | ||||||||||||
Commercial and industrial | 510,784 | 2.8 | 842,206 | 4.4 | ||||||||||||
Consumer | 2,185,429 | 11.9 | 2,393,964 | 12.5 | ||||||||||||
Other | 1,512,450 | 8.3 | 1,740,104 | 9.0 | ||||||||||||
Total loans | 18,307,825 | 100.0 | % | 19,209,168 | 100.0 | % | ||||||||||
Allowance for loan losses | (217,380 | ) | (295,824 | ) | ||||||||||||
Net loans | $ | 18,090,445 | $ | 18,913,344 |
Allowance for Credit Losses
Unaudited
Allowance for Loan Losses | Reserve for Losses on Unfunded Loan Commitments | Total Allowance for Credit Losses | ||||||||||
(Dollars in thousands) | ||||||||||||
Three months ended |
||||||||||||
Balances – |
$ | 237,722 | $ | 61,076 | $ | 298,798 | ||||||
Net charge-offs | (1,817 | ) | — | (1,817 | ) | |||||||
Provision for credit losses | (18,525 | ) | 10,533 | (7,992 | ) | |||||||
Balances – |
$ | 217,380 | $ | 71,609 | $ | 288,989 | ||||||
Year ended |
||||||||||||
Balances – |
$ | 295,824 | $ | 81,481 | $ | 377,305 | ||||||
Net charge-offs | (10,378 | ) | — | (10,378 | ) | |||||||
Provision for credit losses | (68,066 | ) | (9,872 | ) | (77,938 | ) | ||||||
Balances – |
$ | 217,380 | $ | 71,609 | $ | 288,989 | ||||||
Three months ended |
||||||||||||
Balances – |
$ | 308,847 | $ | 68,426 | $ | 377,273 | ||||||
Net charge-offs | (6,718 | ) | — | (6,718 | ) | |||||||
Provision for credit losses | (6,305 | ) | 13,055 | 6,750 | ||||||||
Balances – |
$ | 295,824 | $ | 81,481 | $ | 377,305 | ||||||
Year ended |
||||||||||||
Balances – |
$ | 108,525 | $ | — | $ | 108,525 | ||||||
Adoption of CECL (1) methodology | 39,588 | 54,924 | 94,512 | |||||||||
Balances – |
148,113 | 54,924 | 203,037 | |||||||||
Net charge-offs | (29,371 | ) | — | (29,371 | ) | |||||||
Provision for credit losses | 177,082 | 26,557 | 203,639 | |||||||||
Balances – |
$ | 295,824 | $ | 81,481 | $ | 377,305 |
(1) Current Expected Credit Loss.
Summary of Deposits – By Account Type
Unaudited
2021 | 2020 | |||||||||||||||
(Dollars in thousands) | ||||||||||||||||
Non-interest bearing | $ | 4,983,788 | 24.7 | % | $ | 3,996,546 | 18.6 | % | ||||||||
Interest bearing: | ||||||||||||||||
Transaction (NOW) | 3,412,369 | 16.9 | 3,124,007 | 14.6 | ||||||||||||
Savings and money market | 5,833,358 | 28.9 | 5,036,975 | 23.5 | ||||||||||||
Time deposits less than |
1,801,454 | 8.9 | 3,075,845 | 14.3 | ||||||||||||
Time deposits of |
4,178,165 | 20.6 | 6,216,983 | 29.0 | ||||||||||||
Total deposits | $ | 20,209,134 | 100.0 | % | $ | 21,450,356 | 100.0 | % |
Summary of Deposits – By Customer Type
Unaudited
2021 | 2020 | |||||||||||||||
(Dollars in thousands) | ||||||||||||||||
Non-Interest Bearing | $ | 4,983,788 | 24.7 | % | $ | 3,996,546 | 18.6 | % | ||||||||
Interest Bearing: | ||||||||||||||||
Consumer and Commercial: | ||||||||||||||||
Consumer – Non-Time | 4,334,378 | 21.4 | 3,506,014 | 16.3 | ||||||||||||
Consumer – Time | 4,318,742 | 21.4 | 6,511,664 | 30.4 | ||||||||||||
Commercial – Non-Time | 2,634,817 | 13.0 | 2,178,253 | 10.2 | ||||||||||||
Commercial – Time | 905,347 | 4.5 | 1,137,040 | 5.3 | ||||||||||||
Public Funds | 2,094,800 | 10.4 | 2,004,593 | 9.3 | ||||||||||||
Brokered | 452,137 | 2.2 | 1,600,116 | 7.5 | ||||||||||||
Reciprocal | 485,125 | 2.4 | 516,130 | 2.4 | ||||||||||||
Total deposits | $ | 20,209,134 | 100.0 | % | $ | 21,450,356 | 100.0 | % |
Selected Consolidated Financial Data
Unaudited
Three Months Ended |
Year Ended |
|||||||||||||||||||||||
2021 | 2020 | % Change | 2021 | 2020 | % Change | |||||||||||||||||||
(Dollars in thousands, except per share amounts) | ||||||||||||||||||||||||
Income statement data: | ||||||||||||||||||||||||
Net interest income | $ | 266,381 | $ | 237,600 | 12.1 | % | $ | 989,720 | $ | 888,624 | 11.4 | % | ||||||||||||
Provision for credit losses | (7,992 | ) | 6,750 | (218.4 | ) | (77,938 | ) | 203,639 | (138.3 | ) | ||||||||||||||
Non-interest income | 29,695 | 28,661 | 3.6 | 115,538 | 104,608 | 10.4 | ||||||||||||||||||
Non-interest expense | 110,106 | 103,394 | 6.5 | 430,275 | 413,413 | 4.1 | ||||||||||||||||||
Net income available to common stockholders | 149,760 | 120,513 | 24.3 | 579,001 | 291,898 | 98.4 | ||||||||||||||||||
Pre-tax pre-provision net revenue (1) | 185,970 | 162,867 | 14.2 | 674,983 | 579,819 | 16.4 | ||||||||||||||||||
Common share and per common share data: | ||||||||||||||||||||||||
Net income per share − diluted | $ | 1.17 | $ | 0.93 | 25.8 | % | $ | 4.47 | $ | 2.26 | 97.8 | % | ||||||||||||
Net income per share − basic | 1.17 | 0.93 | 25.8 | 4.49 | 2.26 | 98.7 | ||||||||||||||||||
Dividends per share | 0.29 | 0.275 | 5.5 | 1.1325 | 1.0775 | 5.1 | ||||||||||||||||||
Book value per share | 35.85 | 33.03 | 8.5 | 35.85 | 33.03 | 8.5 | ||||||||||||||||||
Tangible book value per share (1) | 30.52 | 27.81 | 9.7 | 30.52 | 27.81 | 9.7 | ||||||||||||||||||
Weighted-average diluted shares outstanding (thousands) | 128,246 | 129,523 | (1.0 | ) | 129,618 | 129,435 | 0.1 | |||||||||||||||||
End of period shares outstanding (thousands) | 125,444 | 129,350 | (3.0 | ) | 125,444 | 129,350 | (3.0 | ) | ||||||||||||||||
Balance sheet data at period end: | ||||||||||||||||||||||||
Total assets | $ | 26,530,430 | $ | 27,162,596 | (2.3 | )% | $ | 26,530,430 | $ | 27,162,596 | (2.3 | )% | ||||||||||||
Total loans | 18,307,825 | 19,209,168 | (4.7 | ) | 18,307,825 | 19,209,168 | (4.7 | ) | ||||||||||||||||
Non-purchased loans | 17,791,610 | 18,401,495 | (3.3 | ) | 17,791,610 | 18,401,495 | (3.3 | ) | ||||||||||||||||
Purchased loans | 516,215 | 807,673 | (36.1 | ) | 516,215 | 807,673 | (36.1 | ) | ||||||||||||||||
Allowance for loan losses | 217,380 | 295,824 | (26.5 | ) | 217,380 | 295,824 | (26.5 | ) | ||||||||||||||||
Foreclosed assets | 5,744 | 11,085 | (48.2 | ) | 5,744 | 11,085 | (48.2 | ) | ||||||||||||||||
Investment securities − AFS | 3,916,733 | 3,405,351 | 15.0 | 3,916,733 | 3,405,351 | 15.0 | ||||||||||||||||||
669,063 | 675,458 | (0.9 | ) | 669,063 | 675,458 | (0.9 | ) | |||||||||||||||||
Deposits | 20,209,134 | 21,450,356 | (5.8 | ) | 20,209,134 | 21,450,356 | (5.8 | ) | ||||||||||||||||
Other borrowings | 750,206 | 750,928 | (0.1 | ) | 750,206 | 750,928 | (0.1 | ) | ||||||||||||||||
Subordinated notes | 346,133 | 224,047 | 54.5 | 346,133 | 224,047 | 54.5 | ||||||||||||||||||
Subordinated debentures | 121,033 | 120,475 | 0.5 | 121,033 | 120,475 | 0.5 | ||||||||||||||||||
Unfunded balance of closed loans | 13,619,578 | 11,847,117 | 15.0 | 13,619,578 | 11,847,117 | 15.0 | ||||||||||||||||||
Reserve for losses on unfunded loan commitments | 71,609 | 81,481 | (12.11 | ) | 71,609 | 81,481 | (12.11 | ) | ||||||||||||||||
Preferred stock | 338,980 | — | NM | 338,980 | — | NM | ||||||||||||||||||
Total common stockholders’ equity (1) | 4,497,263 | 4,272,271 | 5.3 | 4,497,263 | 4,272,271 | 5.3 | ||||||||||||||||||
Net unrealized gains on investment securities AFS included in stockholders’ equity |
23,841 | 58,252 | 23,841 | 58,252 | ||||||||||||||||||||
Loan (including purchased loans) to deposit ratio | 90.59 | % | 89.55 | % | 90.59 | % | 89.55 | % | ||||||||||||||||
Selected ratios: | ||||||||||||||||||||||||
Return on average assets (2) | 2.25 | % | 1.79 | % | 2.17 | % | 1.13 | % | ||||||||||||||||
Return on average common stockholders’ equity (1) (2) | 13.08 | 11.36 | 13.01 | 7.04 | ||||||||||||||||||||
Return on average tangible common stockholders’ equity (1) (2) | 15.34 | 13.53 | 15.32 | 8.41 | ||||||||||||||||||||
Net interest margin – FTE (2) | 4.41 | 3.88 | 4.09 | 3.81 | ||||||||||||||||||||
Efficiency ratio | 37.06 | 38.61 | 38.76 | 41.37 | ||||||||||||||||||||
Net charge-offs to average non-purchased loans (2) (3) | 0.05 | 0.14 | 0.06 | 0.09 | ||||||||||||||||||||
Net charge-offs to average total loans (2) | 0.04 | 0.14 | 0.06 | 0.16 | ||||||||||||||||||||
Nonperforming loans to total loans (4) | 0.19 | 0.25 | 0.19 | 0.25 | ||||||||||||||||||||
Nonperforming assets to total assets (4) | 0.15 | 0.21 | 0.15 | 0.21 | ||||||||||||||||||||
Allowance for loan losses to total loans (5) | 1.19 | 1.54 | 1.19 | 1.54 | ||||||||||||||||||||
Other information: | ||||||||||||||||||||||||
Non-accrual loans (4) | $ | 33,274 | $ | 44,402 | $ | 33,274 | $ | 44,402 | ||||||||||||||||
Accruing loans − 90 days past due (4) | — | — | — | — | ||||||||||||||||||||
Troubled and restructured non-purchased loans − accruing (4) | 1,285 | 1,483 | 1,285 | 1,483 |
(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 | ||||||||||||
2021 | 2021 | % Change | ||||||||||
(Dollars in thousands, except per share amounts) | ||||||||||||
Income statement data: | ||||||||||||
Net interest income | $ | 266,381 | $ | 247,957 | 7.4 | % | ||||||
Provision for credit losses | (7,992 | ) | (7,454 | ) | 7.2 | |||||||
Non-interest income | 29,695 | 25,984 | 14.3 | |||||||||
Non-interest expense | 110,106 | 110,397 | (0.3 | ) | ||||||||
Net income available to common stockholders | 149,760 | 130,290 | 14.9 | |||||||||
Pre-tax pre-provision net revenue (1) | 185,970 | 163,544 | 13.7 | |||||||||
Common share and per common share data: | ||||||||||||
Earnings per share − diluted | $ | 1.17 | $ | 1.00 | 17.0 | % | ||||||
Earnings per share − basic | 1.17 | 1.01 | 15.8 | |||||||||
Dividends per share | 0.29 | 0.285 | 1.8 | |||||||||
Book value per share | 35.85 | 35.35 | 1.4 | |||||||||
Tangible book value per share (1) | 30.52 | 30.14 | 1.3 | |||||||||
Weighted-average diluted shares outstanding (thousands) | 128,246 | 129,929 | (1.3 | ) | ||||||||
End of period shares outstanding (thousands) | 125,444 | 128,818 | (2.6 | ) | ||||||||
Balance sheet data at period end: | ||||||||||||
Total assets | $ | 26,530,430 | $ | 26,143,367 | 1.5 | % | ||||||
Total loans | 18,307,825 | 18,305,303 | 0.1 | |||||||||
Non-purchased loans | 17,791,610 | 17,707,452 | 0.5 | |||||||||
Purchased loans | 516,215 | 597,851 | (13.7 | ) | ||||||||
Allowance for loan losses | 217,380 | 237,722 | (8.6 | ) | ||||||||
Foreclosed assets | 5,744 | 9,444 | (39.2 | ) | ||||||||
Investment securities − AFS | 3,916,733 | 3,846,496 | 1.8 | |||||||||
669,063 | 670,580 | (0.2 | ) | |||||||||
Deposits | 20,209,134 | 20,102,440 | 0.5 | |||||||||
Other borrowings | 750,206 | 750,217 | (0.1 | ) | ||||||||
Subordinated notes | 346,133 | 345,927 | 0.1 | |||||||||
Subordinated debentures | 121,033 | 120,892 | 0.1 | |||||||||
Unfunded balance of closed loans | 13,619,578 | 12,385,369 | 10.0 | |||||||||
Reserve for losses on unfunded loan commitments | 71,609 | 61,076 | 17.2 | |||||||||
Preferred stock | 338,980 | — | NM | |||||||||
Total common stockholders’ equity (1) | 4,497,263 | 4,553,240 | (1.2 | ) | ||||||||
Net unrealized gains on investment securities AFS included in stockholders’ equity |
23,841 | 40,706 | ||||||||||
Loan (including purchased loans) to deposit ratio | 90.59 | % | 91.06 | % | ||||||||
Selected ratios: | ||||||||||||
Return on average assets (2) | 2.25 | % | 1.98 | % | ||||||||
Return on average common stockholders’ equity (1) (2) | 13.08 | 11.41 | ||||||||||
Return on average tangible common stockholders’ equity (1) (2) | 15.34 | 13.39 | ||||||||||
Net interest margin – FTE (2) | 4.41 | 4.16 | ||||||||||
Efficiency ratio | 37.06 | 40.14 | ||||||||||
Net charge-offs to average non-purchased loans (2) (3) | 0.05 | 0.04 | ||||||||||
Net charge-offs to average total loans (2) | 0.04 | 0.03 | ||||||||||
Nonperforming loans to total loans (4) | 0.19 | 0.20 | ||||||||||
Nonperforming assets to total assets (4) | 0.15 | 0.17 | ||||||||||
Allowance for loan losses to total loans (5) | 1.19 | 1.30 | ||||||||||
Other information: | ||||||||||||
Non-accrual loans (4) | $ | 33,274 | $ | 34,920 | ||||||||
Accruing loans − 90 days past due (4) | — | — | ||||||||||
Troubled and restructured non-purchased loans − accruing (4) | 1,285 | 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
Supplemental Quarterly Financial Data
Unaudited
(Dollars in thousands) | ||||||||||||||||||||||||||||||||
Earnings Summary: | ||||||||||||||||||||||||||||||||
Net interest income | $ | 209,775 | $ | 216,593 | $ | 224,657 | $ | 237,600 | $ | 234,636 | $ | 240,746 | $ | 247,957 | $ | 266,381 | ||||||||||||||||
Federal tax (FTE) adjustment | 1,133 | 1,753 | 1,605 | 1,533 | 1,275 | 1,355 | 1,106 | 1,009 | ||||||||||||||||||||||||
Net interest income (FTE) | 210,908 | 218,346 | 226,262 | 239,133 | 235,911 | 242,101 | 249,063 | 267,390 | ||||||||||||||||||||||||
Provision for credit losses | (117,663 | ) | (72,026 | ) | (7,200 | ) | (6,750 | ) | 31,559 | 30,932 | 7,454 | 7,992 | ||||||||||||||||||||
Non-interest income | 27,680 | 21,591 | 26,676 | 28,661 | 32,117 | 27,742 | 25,984 | 29,695 | ||||||||||||||||||||||||
Non-interest expense | (103,425 | ) | (100,953 | ) | (105,641 | ) | (103,394 | ) | (106,059 | ) | (103,711 | ) | (110,397 | ) | (110,106 | ) | ||||||||||||||||
Pretax income (FTE) | 17,500 | 66,958 | 140,097 | 157,650 | 193,528 | 197,064 | 172,104 | 194,971 | ||||||||||||||||||||||||
FTE adjustment | (1,133 | ) | (1,753 | ) | (1,605 | ) | (1,533 | ) | (1,275 | ) | (1,355 | ) | (1,106 | ) | (1,009 | ) | ||||||||||||||||
Provision for income taxes | (4,509 | ) | (14,948 | ) | (29,251 | ) | (35,607 | ) | (43,818 | ) | (45,161 | ) | (40,713 | ) | (44,197 | ) | ||||||||||||||||
Noncontrolling interest | 8 | 9 | 12 | 3 | (19 | ) | (13 | ) | 5 | (5 | ) | |||||||||||||||||||||
Net income available to common stockholders | $ | 11,866 | $ | 50,266 | $ | 109,253 | $ | 120,513 | $ | 148,416 | $ | 150,535 | $ | 130,290 | $ | 149,760 | ||||||||||||||||
Earnings per common share – diluted | $ | 0.09 | $ | 0.39 | $ | 0.84 | $ | 0.93 | $ | 1.14 | $ | 1.16 | $ | 1.00 | $ | 1.17 | ||||||||||||||||
PPNR | 134,030 | 137,231 | 145,692 | 162,867 | 160,694 | 164,777 | 163,544 | 185,970 | ||||||||||||||||||||||||
Non-interest Income: | ||||||||||||||||||||||||||||||||
Service charges on deposit accounts: | ||||||||||||||||||||||||||||||||
NSF/Overdraft fees | $ | 4,562 | $ | 2,702 | $ | 3,494 | $ | 4,024 | $ | 3,323 | $ | 3,244 | $ | 4,080 | $ | 4,315 | ||||||||||||||||
All other service charges | 5,447 | 5,579 | 5,933 | 5,959 | 6,342 | 7,067 | 7,097 | 7,149 | ||||||||||||||||||||||||
Trust income | 1,939 | 1,759 | 1,936 | 1,909 | 2,206 | 1,911 | 2,247 | 2,141 | ||||||||||||||||||||||||
BOLI income: | ||||||||||||||||||||||||||||||||
Increase in cash surrender value | 5,067 | 5,057 | 5,081 | 5,034 | 4,881 | 4,919 | 4,940 | 4,901 | ||||||||||||||||||||||||
Death benefits | 608 | — | — | — | 1,409 | — | — | 618 | ||||||||||||||||||||||||
Loan service, maintenance and other fees | 3,716 | 3,394 | 3,351 | 3,797 | 3,551 | 3,953 | 3,307 | 3,148 | ||||||||||||||||||||||||
Gains on sales of other assets | 161 | 621 | 891 | 5,189 | 5,828 | 2,341 | 463 | 1,330 | ||||||||||||||||||||||||
Net gains on investment securities | 2,223 | — | 2,244 | — | — | — | — | 504 | ||||||||||||||||||||||||
Other | 3,957 | 2,479 | 3,746 | 2,749 | 4,577 | 4,307 | 3,850 | 5,589 | ||||||||||||||||||||||||
Total non-interest income | $ | 27,680 | $ | 21,591 | $ | 26,676 | $ | 28,661 | $ | 32,117 | $ | 27,742 | $ | 25,984 | $ | 29,695 | ||||||||||||||||
Non-interest Expense: | ||||||||||||||||||||||||||||||||
Salaries and employee benefits | $ | 51,473 | $ | 48,410 | $ | 53,119 | $ | 53,832 | $ | 53,645 | $ | 52,119 | $ | 53,769 | $ | 55,034 | ||||||||||||||||
Net occupancy and equipment | 15,330 | 15,756 | 16,676 | 15,617 | 16,468 | 16,168 | 17,161 | 17,004 | ||||||||||||||||||||||||
Other operating expenses | 36,622 | 36,787 | 35,846 | 33,945 | 35,946 | 35,424 | 39,467 | 38,068 | ||||||||||||||||||||||||
Total non-interest expense | $ | 103,425 | $ | 100,953 | $ | 105,641 | $ | 103,394 | $ | 106,059 | $ | 103,711 | $ | 110,397 | $ | 110,106 | ||||||||||||||||
Balance Sheet Data: | ||||||||||||||||||||||||||||||||
Total assets | $ | 24,565,810 | $ | 26,380,409 | $ | 26,888,308 | $ | 27,162,596 | $ | 27,276,892 | $ | 26,605,938 | $ | 26,143,367 | $ | 26,530,430 | ||||||||||||||||
Non-purchased loans | 17,030,378 | 18,247,431 | 18,419,958 | 18,401,495 | 17,979,435 | 17,611,848 | 17,707,452 | 17,791,610 | ||||||||||||||||||||||||
Purchased loans | 1,197,826 | 1,063,647 | 938,485 | 807,673 | 735,630 | 659,822 | 597,851 | 516,215 | ||||||||||||||||||||||||
Investment securities – AFS | 2,816,556 | 3,299,944 | 3,468,243 | 3,405,351 | 4,162,479 | 4,693,396 | 3,846,496 | 3,916,733 | ||||||||||||||||||||||||
Deposits | 18,809,190 | 20,723,598 | 21,287,405 | 21,450,356 | 21,296,442 | 20,706,777 | 20,102,440 | 20,209,134 | ||||||||||||||||||||||||
Unfunded balance of closed loans | 11,334,737 | 11,411,441 | 11,604,614 | 11,847,117 | 11,780,099 | 11,709,818 | 12,385,369 | 13,619,578 | ||||||||||||||||||||||||
Preferred stock | — | — | — | — | — | — | — | 338,980 | ||||||||||||||||||||||||
Total stockholders' equity before noncontrolling interest | 4,083,150 | 4,110,666 | 4,186,285 | 4,272,271 | 4,383,205 | 4,501,676 | 4,553,240 | 4,836,243 |
Supplemental Quarterly Financial Data (Continued)
Unaudited
(Dollars in thousands) | ||||||||||||||||||||||||||||||||
Allowance for Credit Losses: | ||||||||||||||||||||||||||||||||
Balance at beginning of period | $ | 108,525 | $ | 316,409 | $ | 374,494 | $ | 377,273 | $ | 377,305 | $ | 342,307 | $ | 307,564 | $ | 298,798 | ||||||||||||||||
Adoption of CECL (1) methodology | 94,512 | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Net charge-offs | (4,291 | ) | (13,941 | ) | (4,421 | ) | (6,718 | ) | (3,439 | ) | (3,811 | ) | (1,312 | ) | (1,817 | ) | ||||||||||||||||
Provision for credit losses | 117,663 | 72,026 | 7,200 | 6,750 | (31,559 | ) | (30,932 | ) | (7,454 | ) | (7,992 | ) | ||||||||||||||||||||
Balance at end of period | $ | 316,409 | $ | 374,494 | $ | 377,273 | $ | 377,305 | $ | 342,307 | $ | 307,564 | $ | 298,798 | $ | 288,989 | ||||||||||||||||
Allowance for loan losses | $ | 238,737 | $ | 306,196 | $ | 308,847 | $ | 295,824 | $ | 268,077 | $ | 248,753 | $ | 237,722 | $ | 217,380 | ||||||||||||||||
Reserve for losses on unfunded loan commitments | 77,672 | 68,298 | 68,426 | 81,481 | 74,230 | 58,811 | 61,076 | 71,609 | ||||||||||||||||||||||||
Total allowance for credit losses | $ | 316,409 | $ | 374,494 | $ | 377,273 | $ | 377,305 | $ | 342,307 | $ | 307,564 | $ | 298,798 | $ | 288,989 | ||||||||||||||||
Selected Ratios: | ||||||||||||||||||||||||||||||||
Net interest margin – FTE (2) | 3.96 | % | 3.74 | % | 3.69 | % | 3.88 | % | 3.86 | % | 3.95 | % | 4.16 | % | 4.41 | % | ||||||||||||||||
Efficiency ratio | 43.35 | 42.07 | 41.77 | 38.61 | 39.57 | 38.43 | 40.14 | 37.06 | ||||||||||||||||||||||||
Net charge-offs to average non-purchased loans (2) (3) | 0.08 | 0.05 | 0.09 | 0.14 | 0.08 | 0.09 | 0.04 | 0.05 | ||||||||||||||||||||||||
Net charge-offs to average total loans (2) | 0.10 | 0.29 | 0.09 | 0.14 | 0.07 | 0.08 | 0.03 | 0.04 | ||||||||||||||||||||||||
Nonperforming loans to total loans (4) | 0.16 | 0.18 | 0.15 | 0.25 | 0.25 | 0.22 | 0.20 | 0.19 | ||||||||||||||||||||||||
Nonperforming assets to total assets (4) | 0.19 | 0.19 | 0.17 | 0.21 | 0.19 | 0.18 | 0.17 | 0.15 | ||||||||||||||||||||||||
Allowance for loan losses to total loans (5) | 1.31 | 1.59 | 1.60 | 1.54 | 1.43 | 1.36 | 1.30 | 1.19 | ||||||||||||||||||||||||
Loans past due 30 days or more, including past due non-accrual loans, to total loans (4) |
0.18 | 0.13 | 0.13 | 0.16 | 0.13 | 0.10 | 0.13 | 0.15 |
(1) Current Expected Credit Loss.
(2) Ratios for interim periods annualized based on actual days.
(3) Excludes purchased loans and net charge-offs related to such loans.
(4) Excludes purchased loans, except for their inclusion in total assets.
(5) Excludes reserve for losses on unfunded loan commitments.
Average Consolidated Balance Sheets and Net Interest Analysis – FTE
Unaudited
Three Months Ended |
Year Ended |
|||||||||||||||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||||||||||||||
Average Balance |
Income/ Expense |
Yield/ Rate |
Average Balance |
Income/ Expense |
Yield/ Rate |
Average Balance |
Income/ Expense |
Yield/ Rate |
Average Balance |
Income/ Expense |
Yield/ Rate |
|||||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||||||||||||
ASSETS | ||||||||||||||||||||||||||||||||||||||
Interest earning assets: | ||||||||||||||||||||||||||||||||||||||
Interest earning deposits and federal funds sold |
$ | 2,106,395 | $ | 953 | 0.18 | % | $ | 1,762,810 | $ | 428 | 0.10 | % | $ | 1,871,388 | $ | 2,510 | 0.13 | % | $ | 1,535,977 | $ | 5,665 | 0.37 | % | ||||||||||||||
Investment securities: | ||||||||||||||||||||||||||||||||||||||
Taxable | 3,375,895 | 9,448 | 1.11 | 2,036,253 | 9,066 | 1.77 | 3,207,485 | 36,234 | 1.13 | 1,993,667 | 40,547 | 2.03 | ||||||||||||||||||||||||||
Tax-exempt – FTE | 593,242 | 3,632 | 2.43 | 1,485,224 | 6,034 | 1.62 | 864,432 | 17,378 | 2.01 | 1,080,459 | 24,561 | 2.27 | ||||||||||||||||||||||||||
Non-purchased loans – FTE | 17,449,281 | 256,267 | 5.83 | 18,378,050 | 243,330 | 5.27 | 17,683,033 | 973,755 | 5.51 | 17,797,684 | 945,222 | 5.31 | ||||||||||||||||||||||||||
Purchased loans | 551,917 | 11,190 | 8.04 | 881,372 | 16,069 | 7.25 | 662,434 | 46,174 | 6.97 | 1,069,250 | 70,812 | 6.62 | ||||||||||||||||||||||||||
Total earning assets – FTE | 24,076,730 | 281,490 | 4.64 | 24,543,709 | 274,927 | 4.46 | 24,288,772 | 1,076,051 | 4.43 | 23,477,037 | 1,086,807 | 4.63 | ||||||||||||||||||||||||||
Non-interest earning assets | 2,370,349 | 2,258,105 | 2,335,412 | 2,291,135 | ||||||||||||||||||||||||||||||||||
Total assets | $ | 26,447,079 | $ | 26,801,814 | $ | 26,624,184 | $ | 25,768,172 | ||||||||||||||||||||||||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||||||||||||||||||||||||||||
Interest bearing liabilities: | ||||||||||||||||||||||||||||||||||||||
Deposits: | ||||||||||||||||||||||||||||||||||||||
Savings and interest bearing transaction |
$ | 9,178,225 | $ | 2,641 | 0.11 | % | $ | 7,669,913 | $ | 4,483 | 0.23 | % | $ | 8,788,200 | $ | 12,481 | 0.14 | % | $ | 7,724,528 | $ | 37,428 | 0.48 | % | ||||||||||||||
Time deposits of |
4,358,217 | 4,638 | 0.42 | 6,314,394 | 17,144 | 1.08 | 5,218,981 | 35,375 | 0.68 | 5,524,751 | 83,956 | 1.52 | ||||||||||||||||||||||||||
Other time deposits | 1,898,687 | 2,235 | 0.47 | 3,294,323 | 8,980 | 1.08 | 2,315,263 | 16,566 | 0.72 | 3,511,220 | 50,429 | 1.44 | ||||||||||||||||||||||||||
Total interest bearing deposits | 15,435,129 | 9,514 | 0.24 | 17,278,630 | 30,607 | 0.70 | 16,322,444 | 64,422 | 0.39 | 16,760,499 | 171,813 | 1.03 | ||||||||||||||||||||||||||
Repurchase agreements with customers | 7,558 | 3 | 0.16 | 8,239 | 6 | 0.29 | 7,027 | 17 | 0.24 | 7,825 | 23 | 0.29 | ||||||||||||||||||||||||||
Other borrowings (1) | 750,226 | 1,017 | 0.54 | 750,961 | 1,011 | 0.54 | 750,276 | 4,012 | 0.53 | 721,350 | 3,179 | 0.44 | ||||||||||||||||||||||||||
Subordinated notes | 346,025 | 2,631 | 3.02 | 223,996 | 3,207 | 5.70 | 212,600 | 9,386 | 4.42 | 223,850 | 12,758 | 5.70 | ||||||||||||||||||||||||||
Subordinated debentures (1) | 120,956 | 935 | 3.07 | 120,400 | 963 | 3.18 | 120,751 | 3,750 | 3.11 | 120,190 | 4,384 | 3.65 | ||||||||||||||||||||||||||
Total interest bearing liabilities | 16,659,894 | 14,100 | 0.34 | 18,382,226 | 35,794 | 0.77 | 17,413,098 | 81,587 | 0.47 | 17,833,714 | 192,157 | 1.08 | ||||||||||||||||||||||||||
Non-interest bearing liabilities: | ||||||||||||||||||||||||||||||||||||||
Non-interest bearing deposits | 4,651,656 | 3,907,955 | 4,380,850 | 3,521,066 | ||||||||||||||||||||||||||||||||||
Other non-interest bearing liabilities | 376,706 | 289,298 | 321,583 | 261,169 | ||||||||||||||||||||||||||||||||||
Total liabilities | 21,688,256 | 22,579,479 | 22,115,531 | 21,615,949 | ||||||||||||||||||||||||||||||||||
Total common stockholders’ equity before noncontrolling interest |
4,755,706 | 4,219,249 | 4,505,544 | 4,149,123 | ||||||||||||||||||||||||||||||||||
Noncontrolling interest | 3,117 | 3,086 | 3,109 | 3,100 | ||||||||||||||||||||||||||||||||||
Total liabilities and stockholders’ equity |
$ | 26,447,079 | $ | 26,801,814 | $ | 26,624,184 | $ | 25,768,172 | ||||||||||||||||||||||||||||||
Net interest income – FTE | $ | 267,390 | $ | 239,133 | $ | 994,464 | $ | 894,650 | ||||||||||||||||||||||||||||||
Net interest margin – FTE | 4.41 | % | 3.88 | % | 4.09 | % | 3.81 | % | ||||||||||||||||||||||||||||||
Core spread (2) | 5.59 | % | 4.57 | % | 5.12 | % | 4.28 | % |
(1) The interest expense and the rates for “other borrowings” and for “subordinated debentures” were affected by capitalized interest. Capitalized interest included in other borrowings for the fourth quarter and for the full year of 2021 was not material compared to
(2) Core spread is the difference between the yield on the Bank’s non-purchased loans-FTE and the rate on its interest bearing deposits.
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 | |||||||||||||||||||
Year Ended |
|||||||||||||||||||
2021 | 2020 | 2021 | 2021 | 2020 | |||||||||||||||
(Dollars in thousands) | |||||||||||||||||||
Net income available to common stockholders |
$ | 149,760 | $ | 120,513 | $ | 130,290 | $ | 579,001 | $ | 291,898 | |||||||||
Average stockholders’ equity before noncontrolling interest |
$ | 4,755,706 | $ | 4,219,249 | $ | 4,530,995 | $ | 4,505,544 | $ | 4,149,123 | |||||||||
Less average preferred stock | (213,693 | ) | — | — | (53,862 | ) | — | ||||||||||||
Total average common stockholders’ equity |
4,542,013 | 4,219,249 | 4,530,995 | 4,451,682 | 4,149,123 | ||||||||||||||
Less average intangible assets: | |||||||||||||||||||
(660,789 | ) | (660,789 | ) | (660,789 | ) | (660,789 | ) | (660,789 | ) | ||||||||||
Core deposit and other intangible assets, net of accumulated amortization |
(9,032 | ) | (15,578 | ) | (10,617 | ) | (11,398 | ) | (18,741 | ) | |||||||||
Total average intangibles | (669,821 | ) | (676,367 | ) | (671,406 | ) | (672,187 | ) | (679,530 | ) | |||||||||
Average tangible common stockholders’ equity |
$ | 3,872,192 | $ | 3,542,882 | $ | 3,859,589 | $ | 3,779,495 | $ | 3,469,593 | |||||||||
Return on average common stockholders’ equity (1) |
13.08 | % | 11.36 | % | 11.41 | % | 13.01 | % | 7.04 | % | |||||||||
Return on average tangible common stockholders’ equity (1) |
15.34 | % | 13.53 | % | 13.39 | % | 15.32 | % | 8.41 | % |
(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
2021 | 2020 | 2021 | ||||||||||
(In thousands, except per share amounts) | ||||||||||||
Total stockholders’ equity before noncontrolling interest | $ | 4,836,243 | $ | 4,272,271 | $ | 4,553,240 | ||||||
Less preferred stock | (338,980 | ) | — | — | ||||||||
Total common stockholders’ equity | 4,497,263 | 4,272,271 | 4,553,240 | |||||||||
Less intangible assets: | ||||||||||||
(660,789 | ) | (660,789 | ) | (660,789 | ) | |||||||
Core deposit and other intangible assets, net of accumulated amortization |
(8,274 | ) | (14,669 | ) | (9,791 | ) | ||||||
Total intangibles | (669,063 | ) | (675,458 | ) | (670,580 | ) | ||||||
Total tangible common stockholders’ equity | $ | 3,828,200 | $ | 3,596,813 | $ | 3,882,660 | ||||||
Shares of common stock outstanding | 125,444 | 129,350 | 128,818 | |||||||||
Book value per common share | $ | 35.85 | $ | 33.03 | $ | 35.35 | ||||||
Tangible book value per common share | $ | 30.52 | $ | 27.81 | $ | 30.14 |
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
2021 | 2020 | |||||||
(Dollars in thousands) | ||||||||
Total stockholders’ equity before noncontrolling interest | $ | 4,836,243 | $ | 4,272,271 | ||||
Less preferred stock | (338,980 | ) | — | |||||
Total common stockholders’ equity | 4,497,263 | 4,272,271 | ||||||
Less intangible assets: | ||||||||
(660,789 | ) | (660,789 | ) | |||||
Core deposit and other intangible assets, net of accumulated amortization |
(8,274 | ) | (14,669 | ) | ||||
Total intangibles | (669,063 | ) | (675,458 | ) | ||||
Total tangible common stockholders’ equity | $ | 3,828,200 | $ | 3,596,813 | ||||
Total assets | $ | 26,530,430 | $ | 27,162,596 | ||||
Less intangible assets: | ||||||||
(660,789 | ) | (660,789 | ) | |||||
Core deposit and other intangible assets, net of accumulated amortization |
(8,274 | ) | (14,669 | ) | ||||
Total intangibles | (669,063 | ) | (675,458 | ) | ||||
Total tangible assets | $ | 25,861,367 | $ | 26,487,138 | ||||
Ratio of total common stockholders’ equity to total assets | 16.95 | % | 15.73 | % | ||||
Ratio of total tangible common stockholders’ equity to total tangible assets |
14.80 | % | 13.58 | % |
Calculation of Pre-Tax Pre-Provision Net Revenue
Unaudited
Three Months Ended | ||||||||||||||||||||
2021 |
2021 |
2021 |
2021 |
2020 |
||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Income before taxes | $ | 193,962 | $ | 170,998 | $ | 195,709 | $ | 192,253 | $ | 156,117 | ||||||||||
Provision for credit losses | (7,992 | ) | (7,454 | ) | (30,932 | ) | (31,559 | ) | 6,750 | |||||||||||
Pre-tax pre-provision net revenue | $ | 185,970 | $ | 163,544 | $ | 164,777 | $ | 160,694 | $ | 162,867 | ||||||||||
Three Months Ended | Year Ended |
|||||||||||||||||||
2020 |
2020 |
2020 |
2021 | 2020 | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Income before taxes | $ | 138,492 | $ | 65,205 | $ | 16,367 | $ | 752,921 | $ | 376,180 | ||||||||||
Provision for credit losses | 7,200 | 72,026 | 117,663 | (77,938 | ) | 203,639 | ||||||||||||||
Pre-tax pre-provision net revenue | $ | 145,692 | $ | 137,231 | $ | 134,030 | $ | 674,983 | $ | 579,819 |
![](https://ml.globenewswire.com/media/NmQxNmRmY2QtMzNkMS00MTM4LThmM2YtY2Q0Nzk3ZDM0MjA4LTExMzY4MTU=/tiny/Bank-OZK.png)
Source: Bank OZK