LITTLE ROCK, Ark., April 21, 2022 (GLOBE NEWSWIRE) -- Bank OZK (the “Bank”) (Nasdaq: OZK) today announced that net income available to common shareholders for the first quarter of 2022 was $128.0 million, a 13.7% decrease from $148.4 million for the first quarter of 2021. Diluted earnings per common share for the first quarter of 2022 were $1.02, a 10.5% decrease from $1.14 for the first quarter of 2021.
The Bank’s provision for credit losses was $4.2 million for the first quarter of 2022 compared to negative provision for credit losses of $31.6 million for the first quarter of 2021. Its total allowance for credit losses (“ACL”) was $293.5 million at March 31, 2022. The calculations of the Bank’s provision expense for the first quarter of 2022 and its total ACL at March 31, 2022 were based on a number of key estimates, assumptions and economic forecasts. The Bank’s provision for the first quarter of 2022 and its ACL at March 31, 2022 included certain qualitative adjustments to capture risks that management thought were not fully reflected in its modeled results.
During the fourth quarter of 2021, the Bank completed its public offering of 4.625% Series A Non-Cumulative Perpetual Preferred Stock (“Series A Preferred Stock”) and, during the first quarter of 2022, the Bank paid a Series A Preferred Stock dividend of $4.5 million.
Non-interest income for the first quarter of 2022 included gains on sales of other assets of $7.0 million, of which $1.8 million was a gain from the sale of the Bank’s Magnolia, Arkansas branch. The Bank had $0.3 million of Bank Owned Life Insurance (“BOLI”) death benefits in the first quarter of 2022. Non-interest income for the first quarter of 2021 included gains on sales of other assets of $5.8 million, of which $4.4 million was from the sale of the Bank’s South Carolina branches. The Bank had $1.4 million in BOLI death benefits in the first quarter of 2021.
Pre-tax pre-provision net revenue (“PPNR”) was $173.1 million for the first quarter of 2022, a 7.7% increase from $160.7 million for the first quarter of 2021. The calculation of PPNR and the reconciliation to generally accepted accounting principles (“GAAP”) are included in the schedules accompanying this release.
The Bank’s annualized returns on average assets, average common stockholders’ equity and average tangible common stockholders’ equity for the first quarter of 2022 were 1.97%, 11.67% and 13.73%, respectively, compared to 2.23%, 13.97% and 16.57%, respectively, for the first quarter of 2021. The calculation of the Bank’s returns on average common stockholders’ equity and average tangible common stockholders’ equity and the reconciliations to GAAP are included in the schedules accompanying this release.
George Gleason, Chairman and Chief Executive Officer stated, “We are pleased to report our excellent results for the first quarter of 2022. Our results were highlighted by our second consecutive quarter of record RESG loan originations, reflecting the importance of organic growth in our long-term strategy. Our strong capital and liquidity, disciplined credit culture and outstanding team have us well positioned for the future.”
KEY BALANCE SHEET METRICS
Total loans were $18.93 billion at March 31, 2022, a 1.2% increase from $18.72 billion at March 31, 2021. Non-purchased loans were $18.45 billion at March 31, 2022, a 2.6% increase from $17.98 billion at March 31, 2021. Purchased loans, which consist of loans acquired in previous acquisitions, were $0.48 billion at March 31, 2022, a 34.6% decrease from $0.74 billion at March 31, 2021.
Deposits were $20.33 billion at March 31, 2022, a 4.5% decrease from $21.30 billion at March 31, 2021. Total assets were $26.56 billion at March 31, 2022, a 2.6% decrease from $27.28 billion at March 31, 2021.
Common stockholders’ equity was $4.35 billion at March 31, 2022, a 0.7% decrease from $4.38 billion at March 31, 2021. Tangible common stockholders’ equity was $3.68 billion at March 31, 2022, a 0.7% decrease from $3.71 billion at March 31, 2021. Book value per common share was $35.47 at March 31, 2022, a 5.0% increase from $33.79 at March 31, 2021. Tangible book value per common share was $30.03 at March 31, 2022, a 5.0% increase from $28.60 at March 31, 2021. The calculations of the Bank’s common stockholders’ equity, tangible common stockholders’ equity and tangible book value per common share and the reconciliations to GAAP are included in the schedules accompanying this release.
The Bank’s ratio of total common stockholders’ equity to total assets was 16.38% at March 31, 2022, compared to 16.07% at March 31, 2021. Its ratio of total tangible common stockholders’ equity to total tangible assets was 14.22% at March 31, 2022, compared to 13.94% at March 31, 2021. The calculation of the Bank’s ratio of total tangible common stockholders’ equity to total tangible assets and the reconciliation to GAAP are included in the schedules accompanying this release.
STOCK REPURCHASES
During the quarter just ended, the Bank repurchased approximately 2.9 million of its common shares at a weighted average repurchase price of $45.61, for a total of $131.6 million. In evaluating its plans for future stock repurchases, the Bank considers a variety of factors including its capital position, alternative uses of capital, liquidity, financial performance, stock price, regulatory requirements and other factors. The Bank may suspend its stock repurchase program at any time.
MANAGEMENT’S COMMENTS, CONFERENCE CALL, TRANSCRIPT AND FILINGS
In connection with this release, the Bank released management’s comments on its quarterly results, which are available at http://ir.ozk.com. This release should be read in conjunction with management’s comments on the quarterly results.
Management will conduct a conference call to take questions on these quarterly results and management’s comments at 10:00 a.m. CT (11:00 a.m. ET) on April 22, 2022. Interested parties may listen to this call by dialing 1-844-818-5110 (U.S. and Canada) or 210-229-8841 (internationally) and asking for the Bank OZK conference call. A recorded playback of the call will be available for one week following the call at 1-855-859-2056 (U.S. and Canada) or 404-537-3406 (internationally). The conference ID for this playback is 8028109. The call will be available live or in a recorded version on the Bank’s Investor Relations website at ir.ozk.com under “Company News/Webcasts.” The Bank will also provide a transcript of the conference call on its Investor Relations website.
The Bank files with the Federal Deposit Insurance Corporation (“FDIC”) annual, quarterly and current reports, proxy materials and other information required by the Securities Exchange Act of 1934, copies of which are available electronically at the FDIC’s website at https://efr.fdic.gov/fcxweb/efr/index.html and are also available on the Bank’s Investor Relations website at http://ir.ozk.com. To receive automated email alerts for these materials, please visit http://ir.ozk.com/EmailNotification to sign up.
NON-GAAP FINANCIAL MEASURES
This release contains certain non-GAAP financial measures. The Bank uses these non-GAAP financial measures, specifically return on average tangible common stockholders’ equity, tangible book value per common share, total 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 presentation and other communications by the Bank include certain “forward-looking statements” regarding the Bank’s plans, expectations, thoughts, beliefs, estimates, goals and outlook for the future that are intended to be covered by the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on management’s expectations as well as certain assumptions and estimates made by, and information available to, management at the time. Those statements are not guarantees of future results or performance and are subject to certain known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those expressed in, or implied by, such forward-looking statements. These risks, uncertainties and other factors include, but are not limited to: potential delays or other problems in implementing the Bank’s growth, expansion and acquisition strategies, including 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 transition from the London Interbank Offered Rate (“LIBOR”) as a reference rate; competitive factors and pricing pressures, including their effect on the Bank’s net interest margin or core spread; general economic, unemployment, credit market and real estate market conditions, and the effect of such conditions on the creditworthiness of borrowers, collateral values, the value of investment securities and asset recovery values; 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 actions in response to the coronavirus (“COVID-19”) pandemic such as the Coronavirus Aid, Relief and Economic Security Act, the Consolidated Appropriations Act of 2021, the American Rescue Plan Act of 2021, and any similar or related laws, rules and regulations; changes in U.S. government monetary and fiscal policy; FDIC special assessments or changes to regular assessments; the ability to keep pace with technological changes, including changes regarding maintaining cybersecurity; the impact of failure in, or breach of, our operational or security systems or infrastructure, or those of third parties with whom we do business, including as a result of cyber-attacks or an increase in the incidence or severity of fraud, illegal payments, security breaches or other illegal acts impacting the Bank or its customers; natural disasters or acts of war or terrorism; the adverse effects of the ongoing global COVID-19 pandemic, including the duration of the pandemic and actions taken to contain or treat COVID-19, on the Bank, the Bank’s customers, the Bank’s staff, the global economy and the financial markets; potential impact of supply chain disruptions or inflation; national, international or political instability or military conflict, including the ongoing war in Ukraine; the competition and costs of recruiting and retaining human talent; impairment of our goodwill or other intangible assets; adoption of new accounting standards, or changes in existing standards; and adverse results (including costs, fines, reputational harm and/or other negative effects) from current or future litigation, regulatory examinations or other legal and/or regulatory actions or rulings as well as other factors identified in this communication or as detailed from time to time in our public filings, including those factors described in the disclosures under the headings “Forward-Looking Information” and “Item 1A. Risk Factors” in our most recent Annual Report on Form 10-K for the year ended December 31, 2021 and our quarterly reports on Form 10-Q. Should one or more of the foregoing risks materialize, or should underlying assumptions prove incorrect, actual results or outcomes may vary materially from those described in, or implied by, such forward-looking statements. The Bank disclaims any obligation to update or revise any forward-looking statements based on the occurrence of future events, the receipt of new information or otherwise.
GENERAL INFORMATION
Bank OZK (Nasdaq: OZK) is a regional bank providing innovative financial solutions delivered by expert bankers with a relentless pursuit of excellence. Headquartered in Little Rock, Arkansas, Bank OZK conducts operations with over 240 offices in eight states including Arkansas, Georgia, Florida, North Carolina, Texas, California, New York and Mississippi. Bank OZK can be found at www.ozk.com and on Facebook, Twitter and LinkedIn or contacted at (501) 978-2265 or P. O. Box 8811, Little Rock, Arkansas 72231-8811.
Bank OZK
Consolidated Balance Sheets
Unaudited
| March 31, | December 31, | |||||||
| 2022 | 2021 | |||||||
| (Dollars in thousands, except per share amounts) | ||||||||
| ASSETS | ||||||||
| Cash and cash equivalents | $ | 1,605,812 | $ | 2,053,829 | ||||
| Investment securities ― available for sale (“AFS”) | 3,728,284 | 3,916,733 | ||||||
| Investment securities ― trading | — | 14,957 | ||||||
| Federal Home Loan Bank of Dallas and other bankers’ bank stocks | 40,876 | 40,788 | ||||||
| Non-purchased loans | 18,449,723 | 17,791,610 | ||||||
| Purchased loans | 481,299 | 516,215 | ||||||
| Allowance for loan losses | (204,213 | ) | (217,380 | ) | ||||
| Net loans | 18,726,809 | 18,090,445 | ||||||
| Premises and equipment, net | 693,748 | 695,857 | ||||||
| Foreclosed assets | 3,417 | 5,744 | ||||||
| Accrued interest receivable | 83,114 | 83,025 | ||||||
| Bank owned life insurance (“BOLI”) | 779,271 | 774,822 | ||||||
| Goodwill and other intangible assets, net | 667,546 | 669,063 | ||||||
| Other, net | 233,476 | 185,167 | ||||||
| Total assets | $ | 26,562,353 | $ | 26,530,430 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Deposits: | ||||||||
| Demand non-interest bearing | $ | 5,008,742 | $ | 4,983,788 | ||||
| Savings and interest bearing transaction | 9,753,148 | 9,245,727 | ||||||
| Time | 5,567,772 | 5,979,619 | ||||||
| Total deposits | 20,329,662 | 20,209,134 | ||||||
| Other borrowings | 756,347 | 756,321 | ||||||
| Subordinated notes | 346,333 | 346,133 | ||||||
| Subordinated debentures | 121,171 | 121,033 | ||||||
| Reserve for losses on unfunded loan commitments | 89,327 | 71,609 | ||||||
| Accrued interest payable and other liabilities | 226,344 | 186,840 | ||||||
| Total liabilities | 21,869,184 | 21,691,070 | ||||||
| Commitments and contingencies | ||||||||
| Stockholders’ equity: | ||||||||
| Preferred stock; $0.01 par value; 100,000,000 shares authorized; 14,000,000 issued and outstanding at March 31, 2022 and December 31, 2021 | 338,980 | 338,980 | ||||||
| Common stock; $0.01 par value; 300,000,000 shares authorized; 122,677,195 and 125,443,748 shares issued and outstanding at March 31, 2022 and December 31, 2021, respectively | 1,227 | 1,254 | ||||||
| Additional paid-in capital | 1,962,126 | 2,093,702 | ||||||
| Retained earnings | 2,468,652 | 2,378,466 | ||||||
| Accumulated other comprehensive (loss) income | (80,928 | ) | 23,841 | |||||
| Total stockholders’ equity before noncontrolling interest | 4,690,057 | 4,836,243 | ||||||
| Noncontrolling interest | 3,112 | 3,117 | ||||||
| Total stockholders’ equity | 4,693,169 | 4,839,360 | ||||||
| Total liabilities and stockholders’ equity | $ | 26,562,353 | $ | 26,530,430 | ||||
Bank OZK
Consolidated Statements of Income
Unaudited
| Three Months Ended March 31, | |||||||
| 2022 | 2021 | ||||||
| (Dollars in thousands, except per share amounts) | |||||||
| Interest income: | |||||||
| Non-purchased loans | $ | 239,995 | $ | 239,827 | |||
| Purchased loans | 8,170 | 11,935 | |||||
| Investment securities: | |||||||
| Taxable | 10,611 | 8,083 | |||||
| Tax-exempt | 2,986 | 3,681 | |||||
| Deposits with banks and federal funds sold | 609 | 538 | |||||
| Total interest income | 262,371 | 264,064 | |||||
| Interest expense: | |||||||
| Deposits | 8,492 | 24,350 | |||||
| Other borrowings | 998 | 990 | |||||
| Subordinated notes | 2,574 | 3,146 | |||||
| Subordinated debentures | 964 | 942 | |||||
| Total interest expense | 13,028 | 29,428 | |||||
| Net interest income | 249,343 | 234,636 | |||||
| Provision for credit losses | 4,190 | (31,559 | ) | ||||
| Net interest income after provision for credit losses | 245,153 | 266,195 | |||||
| Non-interest income: | |||||||
| Service charges on deposit accounts: | |||||||
| NSF/Overdraft fees | 4,201 | 3,323 | |||||
| All other service charges | 6,690 | 6,342 | |||||
| Trust income | 2,094 | 2,206 | |||||
| BOLI income: | |||||||
| Increase in cash surrender value | 4,793 | 4,881 | |||||
| Death benefits | 297 | 1,409 | |||||
| Loan service, maintenance and other fees | 3,018 | 3,551 | |||||
| Gains on sales of other assets | 6,992 | 5,828 | |||||
| Net (losses) gains on investment securities | (90 | ) | — | ||||
| Other | 3,480 | 4,577 | |||||
| Total non-interest income | 31,475 | 32,117 | |||||
| Non-interest expense: | |||||||
| Salaries and employee benefits | 54,648 | 53,645 | |||||
| Net occupancy and equipment | 17,215 | 16,468 | |||||
| Other operating expenses | 35,852 | 35,946 | |||||
| Total non-interest expense | 107,715 | 106,059 | |||||
| Income before taxes | 168,913 | 192,253 | |||||
| Provision for income taxes | 36,410 | 43,818 | |||||
| Net income | 132,503 | 148,435 | |||||
| Earnings attributable to noncontrolling interest | 5 | (19 | ) | ||||
| Preferred stock dividends | 4,480 | — | |||||
| Net income available to common stockholders | $ | 128,028 | $ | 148,416 | |||
| Basic earnings per common share | $ | 1.03 | $ | 1.15 | |||
| Diluted earnings per common share | $ | 1.02 | $ | 1.14 | |||
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, 2022: | |||||||||||||||||||||||||||
| Balances – December 31, 2021 | $ | 338,980 | $ | 1,254 | $ | 2,093,702 | $ | 2,378,466 | $ | 23,841 | $ | 3,117 | $ | 4,839,360 | |||||||||||||
| Net income | — | — | — | 132,503 | — | — | 132,503 | ||||||||||||||||||||
| Earnings attributable to noncontrolling interest | — | — | — | 5 | — | (5 | ) | — | |||||||||||||||||||
| Total other comprehensive loss | — | — | — | — | (104,769 | ) | — | (104,769 | ) | ||||||||||||||||||
| Preferred stock dividends, $0.32 per share | — | — | — | (4,480 | ) | — | — | (4,480 | ) | ||||||||||||||||||
| Common stock dividends, $0.30 per share | — | — | — | (37,842 | ) | — | — | (37,842 | ) | ||||||||||||||||||
| Issuance of 49,020 shares of common stock for exercise of stock options | — | 1 | 1,486 | — | — | — | 1,487 | ||||||||||||||||||||
| Issuance of 199,406 shares of unvested restricted common stock | — | 2 | (2 | ) | — | — | — | — | |||||||||||||||||||
| Repurchase and cancellation of 2,883,013 shares of common stock under share repurchase program | — | (29 | ) | (131,536 | ) | — | — | — | (131,565 | ) | |||||||||||||||||
| Repurchase and cancellation of 112,974 shares of common stock withheld for taxes pursuant to restricted stock vesting | — | (1 | ) | (5,398 | ) | — | — | — | (5,399 | ) | |||||||||||||||||
| Stock-based compensation expense | — | — | 3,874 | — | — | — | 3,874 | ||||||||||||||||||||
| Forfeitures of 18,992 shares of unvested restricted common stock | — | — | — | — | — | — | — | ||||||||||||||||||||
| Balances – March 31, 2022 | $ | 338,980 | $ | 1,227 | $ | 1,962,126 | $ | 2,468,652 | $ | (80,928 | ) | $ | 3,112 | $ | 4,693,169 | ||||||||||||
| Three months ended March 31, 2021: | |||||||||||||||||||||||||||
| Balances – December 31, 2020 | $ | — | $ | 1,294 | $ | 2,265,850 | $ | 1,946,875 | $ | 58,252 | $ | 3,085 | $ | 4,275,356 | |||||||||||||
| Net income | — | — | — | 148,435 | — | — | 148,435 | ||||||||||||||||||||
| Earnings attributable to noncontrolling interest | — | — | — | (19 | ) | — | 19 | — | |||||||||||||||||||
| Total other comprehensive loss | — | — | — | — | (7,788 | ) | — | (7,788 | ) | ||||||||||||||||||
| Common stock dividends, $0.2775 per share | — | — | — | (35,893 | ) | — | — | (35,893 | ) | ||||||||||||||||||
| Issuance of 128,100 shares of common stock for exercise of stock options | — | 1 | 4,492 | — | — | — | 4,493 | ||||||||||||||||||||
| Issuance of 312,503 shares of unvested restricted common stock | — | 3 | (3 | ) | — | — | — | — | |||||||||||||||||||
| Repurchase and cancellation of 55,740 shares of common stock withheld for taxes pursuant to restricted stock vesting | — | (1 | ) | (1,970 | ) | — | — | — | (1,971 | ) | |||||||||||||||||
| Stock-based compensation expense | — | — | 3,677 | — | — | — | 3,677 | ||||||||||||||||||||
| Forfeitures of 16,405 shares of unvested restricted common stock | — | — | — | — | — | — | — | ||||||||||||||||||||
| Balances – March 31, 2021 | $ | — | $ | 1,297 | $ | 2,272,046 | $ | 2,059,398 | $ | 50,464 | $ | 3,104 | $ | 4,386,309 | |||||||||||||
Bank OZK
Summary of Non-Interest Expense
Unaudited
| Three Months Ended March 31, | ||||||||
| 2022 | 2021 | |||||||
| (Dollars in thousands) | ||||||||
| Salaries and employee benefits | $ | 54,648 | $ | 53,645 | ||||
| Net occupancy and equipment | 17,215 | 16,468 | ||||||
| Other operating expenses: | ||||||||
| Professional and outside services | 7,082 | 6,326 | ||||||
| Software and data processing | 5,921 | 5,792 | ||||||
| Deposit insurance and assessments | 2,150 | 3,520 | ||||||
| Telecommunication services | 2,010 | 2,232 | ||||||
| Travel and meals | 1,758 | 774 | ||||||
| Postage and supplies | 1,698 | 1,645 | ||||||
| ATM expense | 1,509 | 1,283 | ||||||
| Advertising and public relations | 1,259 | 308 | ||||||
| Loan collection and repossession expense | 325 | 509 | ||||||
| Writedowns of foreclosed and other assets | 258 | 1,363 | ||||||
| Amortization of intangibles | 1,517 | 1,730 | ||||||
| Amortization of CRA and tax credit investments | 5,102 | 4,125 | ||||||
| Other | 5,263 | 6,339 | ||||||
| Total non-interest expense | $ | 107,715 | $ | 106,059 | ||||
Bank OZK
Summary of Total Loans Outstanding
Unaudited
| March 31, 2022 | December 31, 2021 | |||||||||||||||
| (Dollars in thousands) | ||||||||||||||||
| Real estate: | ||||||||||||||||
| Residential 1-4 family | $ | 921,310 | 4.9 | % | $ | 887,024 | 4.8 | % | ||||||||
| Non-farm/non-residential | 3,942,133 | 20.8 | 3,782,892 | 20.7 | ||||||||||||
| Construction/land development | 8,752,873 | 46.2 | 8,246,674 | 45.0 | ||||||||||||
| Agricultural | 256,462 | 1.4 | 247,727 | 1.4 | ||||||||||||
| Multifamily residential | 761,634 | 4.0 | 934,845 | 5.1 | ||||||||||||
| Total real estate | 14,634,412 | 77.3 | 14,099,162 | 77.0 | ||||||||||||
| Commercial and industrial | 440,203 | 2.3 | 510,784 | 2.8 | ||||||||||||
| Consumer | 2,257,909 | 11.9 | 2,185,429 | 11.9 | ||||||||||||
| Other | 1,598,498 | 8.5 | 1,512,450 | 8.3 | ||||||||||||
| Total loans | 18,931,022 | 100.0 | % | 18,307,825 | 100.0 | % | ||||||||||
| Allowance for loan losses | (204,213 | ) | (217,380 | ) | ||||||||||||
| Net loans | $ | 18,726,809 | $ | 18,090,445 | ||||||||||||
Bank OZK
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 March 31, 2022: | ||||||||||||
| Balances – December 31, 2021 | $ | 217,380 | $ | 71,609 | $ | 288,989 | ||||||
| Net charge-offs | 361 | — | 361 | |||||||||
| Provision for credit losses | (13,528 | ) | 17,718 | 4,190 | ||||||||
| Balances – March 31, 2022 | $ | 204,213 | $ | 89,327 | $ | 293,540 | ||||||
| Three months ended March 31, 2021: | ||||||||||||
| Balances – December 31, 2020 | $ | 295,824 | $ | 81,481 | $ | 377,305 | ||||||
| Net charge-offs | (3,439 | ) | — | (3,439 | ) | |||||||
| Provision for credit losses | (24,308 | ) | (7,251 | ) | (31,559 | ) | ||||||
| Balances – March 31, 2021 | $ | 268,077 | $ | 74,230 | $ | 342,307 | ||||||
Bank OZK
Summary of Deposits – By Account Type
Unaudited
| March 31, 2022 | December 31, 2021 | |||||||||||||||
| (Dollars in thousands) | ||||||||||||||||
| Non-interest bearing | $ | 5,008,742 | 24.6 | % | $ | 4,983,788 | 24.7 | % | ||||||||
| Interest bearing: | ||||||||||||||||
| Transaction (NOW) | 3,434,321 | 16.9 | 3,412,369 | 16.9 | ||||||||||||
| Savings and money market | 6,318,827 | 31.1 | 5,833,358 | 28.9 | ||||||||||||
| Time deposits | 5,567,772 | 27.4 | 5,979,619 | 29.5 | ||||||||||||
| Total deposits | $ | 20,329,662 | 100.0 | % | $ | 20,209,134 | 100.0 | % | ||||||||
Summary of Deposits – By Customer Type
Unaudited
| March 31, 2022 | December 31, 2021 | |||||||||||||||
| (Dollars in thousands) | ||||||||||||||||
| Non-Interest Bearing | $ | 5,008,742 | 24.6 | % | $ | 4,983,788 | 24.7 | % | ||||||||
| Interest Bearing: | ||||||||||||||||
| Consumer and Commercial: | ||||||||||||||||
| Consumer – Non-Time | 4,491,178 | 22.1 | 4,334,378 | 21.4 | ||||||||||||
| Consumer – Time | 4,089,074 | 20.1 | 4,318,742 | 21.4 | ||||||||||||
| Commercial – Non-Time | 2,645,789 | 13.0 | 2,634,817 | 13.0 | ||||||||||||
| Commercial – Time | 792,562 | 3.9 | 905,347 | 4.5 | ||||||||||||
| Public Funds | 2,043,667 | 10.1 | 2,094,800 | 10.4 | ||||||||||||
| Brokered | 754,979 | 3.7 | 452,137 | 2.2 | ||||||||||||
| Reciprocal | 503,671 | 2.5 | 485,125 | 2.4 | ||||||||||||
| Total deposits | $ | 20,329,662 | 100.0 | % | $ | 20,209,134 | 100.0 | % | ||||||||
Bank OZK
Selected Consolidated Financial Data
Unaudited
| Three Months Ended March 31, | ||||||||||||
| 2022 | 2021 | % Change | ||||||||||
| (Dollars in thousands, except per share amounts) | ||||||||||||
| Income statement data: | ||||||||||||
| Net interest income | $ | 249,343 | $ | 234,636 | 6.3 | % | ||||||
| Provision for credit losses | 4,190 | (31,559 | ) | NM | ||||||||
| Non-interest income | 31,475 | 32,117 | (2.0 | ) | ||||||||
| Non-interest expense | 107,715 | 106,059 | 1.6 | |||||||||
| Net income | 132,503 | 148,435 | (10.7 | ) | ||||||||
| Preferred stock dividends | 4,480 | — | NM | |||||||||
| Net income available to common stockholders | 128,028 | 148,416 | (13.7 | ) | ||||||||
| Pre-tax pre-provision net revenue (1) | 173,103 | 160,694 | 7.7 | |||||||||
| Common share and per common share data: | ||||||||||||
| Diluted earnings per common share | $ | 1.02 | $ | 1.14 | (10.5 | )% | ||||||
| Basic earnings per common share | 1.03 | 1.15 | (10.4 | ) | ||||||||
| Common stock dividends per share | 0.30 | 0.2775 | 8.1 | |||||||||
| Book value per share | 35.47 | 33.79 | 5.0 | |||||||||
| Tangible book value per share (1) | 30.03 | 28.60 | 5.0 | |||||||||
| Weighted-average diluted shares outstanding (thousands) | 125,004 | 129,816 | (3.7 | ) | ||||||||
| End of period shares outstanding (thousands) | 122,677 | 129,719 | (5.4 | ) | ||||||||
| Balance sheet data at period end: | ||||||||||||
| Total assets | $ | 26,562,353 | $ | 27,276,892 | (2.6 | )% | ||||||
| Total loans | 18,931,022 | 18,715,065 | 1.2 | |||||||||
| Non-purchased loans | 18,449,723 | 17,979,435 | 2.6 | |||||||||
| Purchased loans | 481,299 | 735,630 | (34.6 | ) | ||||||||
| Allowance for loan losses | 204,213 | 268,077 | (23.8 | ) | ||||||||
| Foreclosed assets | 3,417 | 8,436 | (59.5 | ) | ||||||||
| Investment securities − AFS | 3,728,284 | 4,162,479 | (10.4 | ) | ||||||||
| Goodwill and other intangible assets, net | 667,546 | 673,728 | (0.9 | ) | ||||||||
| Deposits | 20,329,662 | 21,296,442 | (4.5 | ) | ||||||||
| Other borrowings | 756,347 | 756,297 | 0.0 | |||||||||
| Subordinated notes | 346,333 | 224,141 | 54.5 | |||||||||
| Subordinated debentures | 121,171 | 120,613 | 0.5 | |||||||||
| Unfunded balance of closed loans | 14,954,367 | 11,780,099 | 26.9 | |||||||||
| Reserve for losses on unfunded loan commitments | 89,327 | 74,230 | 20.3 | |||||||||
| Preferred stock | 338,980 | — | NM | |||||||||
| Total common stockholders’ equity (1) | 4,351,077 | 4,383,205 | (0.7 | ) | ||||||||
| Net unrealized (losses) gains on investment securities AFS included in stockholders’ equity | (80,928 | ) | 50,464 | |||||||||
| Loan (including purchased loans) to deposit ratio | 93.12 | % | 87.88 | % | ||||||||
| Selected ratios: | ||||||||||||
| Return on average assets (2) | 1.97 | % | 2.23 | % | ||||||||
| Return on average common stockholders’ equity (1) (2) | 11.67 | 13.97 | ||||||||||
| Return on average tangible common stockholders’ equity (1) (2) | 13.73 | 16.57 | ||||||||||
| Average common equity to total average assets | 16.86 | 15.93 | ||||||||||
| Net interest margin – FTE (2) | 4.24 | 3.86 | ||||||||||
| Efficiency ratio | 38.22 | 39.57 | ||||||||||
| Net charge-offs to average non-purchased loans (2) (3) | 0.08 | 0.08 | ||||||||||
| Net charge-offs to average total loans (2) | (0.01 | ) | 0.07 | |||||||||
| Nonperforming loans to total loans (4) | 0.21 | 0.25 | ||||||||||
| Nonperforming assets to total assets (4) | 0.16 | 0.19 | ||||||||||
| Allowance for loan losses to total loans (5) | 1.08 | 1.43 | ||||||||||
| Other information: | ||||||||||||
| Non-accrual loans (4) | $ | 37,363 | $ | 43,059 | ||||||||
| Accruing loans − 90 days past due (4) | — | — | ||||||||||
| Troubled and restructured non-purchased loans − accruing (4) | 1,263 | 1,380 | ||||||||||
| (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 | ||||||||||||
| March 31, | December 31, | |||||||||||
| 2022 | 2021 | % Change | ||||||||||
| (Dollars in thousands, except per share amounts) | ||||||||||||
| Income statement data: | ||||||||||||
| Net interest income | $ | 249,343 | $ | 266,381 | (6.4 | )% | ||||||
| Provision for credit losses | 4,190 | (7,992 | ) | NM | ||||||||
| Non-interest income | 31,475 | 29,695 | 6.0 | |||||||||
| Non-interest expense | 107,715 | 110,106 | (2.2 | ) | ||||||||
| Net income | 132,503 | 149,765 | (11.5 | ) | ||||||||
| Preferred stock dividends | 4,480 | — | NM | |||||||||
| Net income available to common stockholders | 128,028 | 149,760 | (14.5 | ) | ||||||||
| Pre-tax pre-provision net revenue (1) | 173,103 | 185,970 | (6.9 | ) | ||||||||
| Common share and per common share data: | ||||||||||||
| Diluted earnings per common share | $ | 1.02 | $ | 1.17 | (12.8 | )% | ||||||
| Basic earnings per common share | 1.03 | 1.17 | (12.0 | ) | ||||||||
| Dividends per share | 0.30 | 0.290 | 3.4 | |||||||||
| Book value per share | 35.47 | 35.85 | (1.1 | ) | ||||||||
| Tangible book value per share (1) | 30.03 | 30.52 | (1.6 | ) | ||||||||
| Weighted-average diluted shares outstanding (thousands) | 125,004 | 128,246 | (2.5 | ) | ||||||||
| End of period shares outstanding (thousands) | 122,677 | 125,444 | (2.2 | ) | ||||||||
| Balance sheet data at period end: | ||||||||||||
| Total assets | $ | 26,562,353 | $ | 26,530,430 | 0.1 | % | ||||||
| Total loans | 18,931,022 | 18,307,825 | 3.4 | |||||||||
| Non-purchased loans | 18,449,723 | 17,791,610 | 3.7 | |||||||||
| Purchased loans | 481,299 | 516,215 | (6.8 | ) | ||||||||
| Allowance for loan losses | 204,213 | 217,380 | (6.1 | ) | ||||||||
| Foreclosed assets | 3,417 | 5,744 | (40.5 | ) | ||||||||
| Investment securities − AFS | 3,728,284 | 3,916,733 | (4.8 | ) | ||||||||
| Goodwill and other intangible assets, net | 667,546 | 669,063 | (0.2 | ) | ||||||||
| Deposits | 20,329,662 | 20,209,134 | 0.6 | |||||||||
| Other borrowings | 756,347 | 756,321 | 0.0 | |||||||||
| Subordinated notes | 346,333 | 346,133 | 0.1 | |||||||||
| Subordinated debentures | 121,171 | 121,033 | 0.1 | |||||||||
| Unfunded balance of closed loans | 14,954,367 | 13,619,578 | 9.8 | |||||||||
| Reserve for losses on unfunded loan commitments | 89,327 | 71,609 | 24.7 | |||||||||
| Preferred stock | 338,980 | 338,980 | — | |||||||||
| Total common stockholders’ equity (1) | 4,351,077 | 4,497,263 | (3.3 | ) | ||||||||
| Net unrealized gains on investment securities AFS included in stockholders’ equity | (80,928 | ) | 23,841 | |||||||||
| Loan (including purchased loans) to deposit ratio | 93.12 | % | 90.59 | % | ||||||||
| Selected ratios: | ||||||||||||
| Return on average assets (2) | 1.97 | % | 2.25 | % | ||||||||
| Return on average common stockholders’ equity (1) (2) | 11.67 | 13.08 | ||||||||||
| Return on average tangible common stockholders’ equity (1) (2) | 13.73 | 15.34 | ||||||||||
| Net interest margin – FTE (2) | 4.24 | 4.41 | ||||||||||
| Efficiency ratio | 38.22 | 37.06 | ||||||||||
| Net charge-offs to average non-purchased loans (2) (3) | 0.08 | 0.05 | ||||||||||
| Net charge-offs to average total loans (2) | (0.01 | ) | 0.04 | |||||||||
| Nonperforming loans to total loans (4) | 0.21 | 0.19 | ||||||||||
| Nonperforming assets to total assets (4) | 0.16 | 0.15 | ||||||||||
| Allowance for loan losses to total loans (5) | 1.08 | 1.19 | ||||||||||
| Other information: | ||||||||||||
| Non-accrual loans (4) | $ | 37,363 | $ | 33,274 | ||||||||
| Accruing loans − 90 days past due (4) | — | — | ||||||||||
| Troubled and restructured non-purchased loans − accruing (4) | 1,263 | 1,285 | ||||||||||
| (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 | |
Bank OZK
Supplemental Quarterly Financial Data
Unaudited
| 6/30/20 | 9/30/20 | 12/31/20 | 3/31/21 | 6/30/21 | 9/30/21 | 12/31/21 | 03/31/22 | |||||||||||||||||||||||||
| (Dollars in thousands, except per share amounts) | ||||||||||||||||||||||||||||||||
| Earnings Summary: | ||||||||||||||||||||||||||||||||
| Net interest income | $ | 216,593 | $ | 224,657 | $ | 237,600 | $ | 234,636 | $ | 240,746 | $ | 247,957 | $ | 266,381 | $ | 249,343 | ||||||||||||||||
| Federal tax (FTE) adjustment | 1,753 | 1,605 | 1,533 | 1,275 | 1,355 | 1,106 | 1,009 | 1,017 | ||||||||||||||||||||||||
| Net interest income (FTE) | 218,346 | 226,262 | 239,133 | 235,911 | 242,101 | 249,063 | 267,390 | 250,360 | ||||||||||||||||||||||||
| Provision for credit losses | (72,026 | ) | (7,200 | ) | (6,750 | ) | 31,559 | 30,932 | 7,454 | 7,992 | (4,190 | ) | ||||||||||||||||||||
| Non-interest income | 21,591 | 26,676 | 28,661 | 32,117 | 27,742 | 25,984 | 29,695 | 31,475 | ||||||||||||||||||||||||
| Non-interest expense | (100,953 | ) | (105,641 | ) | (103,394 | ) | (106,059 | ) | (103,711 | ) | (110,397 | ) | (110,106 | ) | (107,715 | ) | ||||||||||||||||
| Pretax income (FTE) | 66,958 | 140,097 | 157,650 | 193,528 | 197,064 | 172,104 | 194,971 | 169,930 | ||||||||||||||||||||||||
| FTE adjustment | (1,753 | ) | (1,605 | ) | (1,533 | ) | (1,275 | ) | (1,355 | ) | (1,106 | ) | (1,009 | ) | (1,017 | ) | ||||||||||||||||
| Provision for income taxes | (14,948 | ) | (29,251 | ) | (35,607 | ) | (43,818 | ) | (45,161 | ) | (40,713 | ) | (44,197 | ) | (36,410 | ) | ||||||||||||||||
| Noncontrolling interest | 9 | 12 | 3 | (19 | ) | (13 | ) | 5 | (5 | ) | 5 | |||||||||||||||||||||
| Preferred stock dividend | — | — | — | — | — | — | — | (4,480 | ) | |||||||||||||||||||||||
| Net income available to common stockholders | $ | 50,266 | $ | 109,253 | $ | 120,513 | $ | 148,416 | $ | 150,535 | $ | 130,290 | $ | 149,760 | $ | 128,028 | ||||||||||||||||
| Earnings per common share – diluted | $ | 0.39 | $ | 0.84 | $ | 0.93 | $ | 1.14 | $ | 1.16 | $ | 1.00 | $ | 1.17 | $ | 1.02 | ||||||||||||||||
| PPNR | $ | 137,231 | $ | 145,692 | $ | 162,867 | $ | 160,694 | $ | 164,777 | $ | 163,544 | $ | 185,970 | $ | 173,103 | ||||||||||||||||
| Non-interest Income: | ||||||||||||||||||||||||||||||||
| Service charges on deposit accounts: | ||||||||||||||||||||||||||||||||
| NSF/Overdraft fees | $ | 2,702 | $ | 3,494 | $ | 4,024 | $ | 3,323 | $ | 3,244 | $ | 4,080 | $ | 4,315 | $ | 4,201 | ||||||||||||||||
| All other service charges | 5,579 | 5,933 | 5,959 | 6,342 | 7,067 | 7,097 | 7,149 | 6,690 | ||||||||||||||||||||||||
| Trust income | 1,759 | 1,936 | 1,909 | 2,206 | 1,911 | 2,247 | 2,141 | 2,094 | ||||||||||||||||||||||||
| BOLI income: | ||||||||||||||||||||||||||||||||
| Increase in cash surrender value | 5,057 | 5,081 | 5,034 | 4,881 | 4,919 | 4,940 | 4,901 | 4,793 | ||||||||||||||||||||||||
| Death benefits | — | — | — | 1,409 | — | — | 618 | 297 | ||||||||||||||||||||||||
| Loan service, maintenance and other fees | 3,394 | 3,351 | 3,797 | 3,551 | 3,953 | 3,307 | 3,148 | 3,018 | ||||||||||||||||||||||||
| Gains on sales of other assets | 621 | 891 | 5,189 | 5,828 | 2,341 | 463 | 1,330 | 6,992 | ||||||||||||||||||||||||
| Net gains (losses) on investment securities | — | 2,244 | — | — | — | — | 504 | (90 | ) | |||||||||||||||||||||||
| Other | 2,479 | 3,746 | 2,749 | 4,577 | 4,307 | 3,850 | 5,589 | 3,480 | ||||||||||||||||||||||||
| Total non-interest income | $ | 21,591 | $ | 26,676 | $ | 28,661 | $ | 32,117 | $ | 27,742 | $ | 25,984 | $ | 29,695 | $ | 31,475 | ||||||||||||||||
| Non-interest Expense: | ||||||||||||||||||||||||||||||||
| Salaries and employee benefits | $ | 48,410 | $ | 53,119 | $ | 53,832 | $ | 53,645 | $ | 52,119 | $ | 53,769 | $ | 55,034 | $ | 54,648 | ||||||||||||||||
| Net occupancy and equipment | 15,756 | 16,676 | 15,617 | 16,468 | 16,168 | 17,161 | 17,004 | 17,215 | ||||||||||||||||||||||||
| Other operating expenses | 36,787 | 35,846 | 33,945 | 35,946 | 35,424 | 39,467 | 38,068 | 35,852 | ||||||||||||||||||||||||
| Total non-interest expense | $ | 100,953 | $ | 105,641 | $ | 103,394 | $ | 106,059 | $ | 103,711 | $ | 110,397 | $ | 110,106 | $ | 107,715 | ||||||||||||||||
| Balance Sheet Data: | ||||||||||||||||||||||||||||||||
| Total assets | $ | 26,380,409 | $ | 26,888,308 | $ | 27,162,596 | $ | 27,276,892 | $ | 26,605,938 | $ | 26,143,367 | $ | 26,530,430 | $ | 26,562,353 | ||||||||||||||||
| Non-purchased loans | 18,247,431 | 18,419,958 | 18,401,495 | 17,979,435 | 17,611,848 | 17,707,452 | 17,791,610 | 18,449,723 | ||||||||||||||||||||||||
| Purchased loans | 1,063,647 | 938,485 | 807,673 | 735,630 | 659,822 | 597,851 | 516,215 | 481,299 | ||||||||||||||||||||||||
| Investment securities – AFS | 3,299,944 | 3,468,243 | 3,405,351 | 4,162,479 | 4,693,396 | 3,846,496 | 3,916,733 | 3,728,284 | ||||||||||||||||||||||||
| Deposits | 20,723,598 | 21,287,405 | 21,450,356 | 21,296,442 | 20,706,777 | 20,102,440 | 20,209,134 | 20,329,662 | ||||||||||||||||||||||||
| Unfunded balance of closed loans | 11,411,441 | 11,604,614 | 11,847,117 | 11,780,099 | 11,709,818 | 12,385,369 | 13,619,578 | 14,954,367 | ||||||||||||||||||||||||
| Preferred stock | — | — | — | — | — | — | 338,980 | 338,980 | ||||||||||||||||||||||||
| Total stockholders' equity before noncontrolling interest | 4,110,666 | 4,186,285 | 4,272,271 | 4,383,205 | 4,501,676 | 4,553,240 | 4,836,243 | 4,690,057 | ||||||||||||||||||||||||
Bank OZK
Supplemental Quarterly Financial Data (Continued)
Unaudited
| 6/30/20 | 9/30/20 | 12/31/20 | 3/31/21 | 6/30/21 | 9/30/21 | 12/31/21 | 03/31/22 | |||||||||||||||||||||||||
| (Dollars in thousands, except per share amounts) | ||||||||||||||||||||||||||||||||
| Allowance for Credit Losses: | ||||||||||||||||||||||||||||||||
| Balance at beginning of period | $ | 316,409 | $ | 374,494 | $ | 377,273 | $ | 377,305 | $ | 342,307 | $ | 307,564 | $ | 298,798 | $ | 288,989 | ||||||||||||||||
| Net charge-offs | (13,941 | ) | (4,421 | ) | (6,718 | ) | (3,439 | ) | (3,811 | ) | (1,312 | ) | (1,817 | ) | 361 | |||||||||||||||||
| Provision for credit losses | 72,026 | 7,200 | 6,750 | (31,559 | ) | (30,932 | ) | (7,454 | ) | (7,992 | ) | 4,190 | ||||||||||||||||||||
| Balance at end of period | $ | 374,494 | $ | 377,273 | $ | 377,305 | $ | 342,307 | $ | 307,564 | $ | 298,798 | $ | 288,989 | $ | 293,540 | ||||||||||||||||
| Allowance for loan losses | $ | 306,196 | $ | 308,847 | $ | 295,824 | $ | 268,077 | $ | 248,753 | $ | 237,722 | $ | 217,380 | $ | 204,213 | ||||||||||||||||
| Reserve for losses on unfunded loan commitments | 68,298 | 68,426 | 81,481 | 74,230 | 58,811 | 61,076 | 71,609 | 89,327 | ||||||||||||||||||||||||
| Total allowance for credit losses | $ | 374,494 | $ | 377,273 | $ | 377,305 | $ | 342,307 | $ | 307,564 | $ | 298,798 | $ | 288,989 | $ | 293,540 | ||||||||||||||||
| Selected Ratios: | ||||||||||||||||||||||||||||||||
| Net interest margin – FTE (1) | 3.74 | % | 3.69 | % | 3.88 | % | 3.86 | % | 3.95 | % | 4.16 | % | 4.41 | % | 4.24 | % | ||||||||||||||||
| Efficiency ratio | 42.07 | 41.77 | 38.61 | 39.57 | 38.43 | 40.14 | 37.06 | 38.22 | ||||||||||||||||||||||||
| Net charge-offs to average non-purchased loans (1) (2) | 0.05 | 0.09 | 0.14 | 0.08 | 0.09 | 0.04 | 0.05 | 0.08 | ||||||||||||||||||||||||
| Net charge-offs to average total loans (1) | 0.29 | 0.09 | 0.14 | 0.07 | 0.08 | 0.03 | 0.04 | (0.01 | ) | |||||||||||||||||||||||
| Nonperforming loans to total loans (3) | 0.18 | 0.15 | 0.25 | 0.25 | 0.22 | 0.20 | 0.19 | 0.21 | ||||||||||||||||||||||||
| Nonperforming assets to total assets (3) | 0.19 | 0.17 | 0.21 | 0.19 | 0.18 | 0.17 | 0.15 | 0.16 | ||||||||||||||||||||||||
| Allowance for loan losses to total loans (4) | 1.59 | 1.60 | 1.54 | 1.43 | 1.36 | 1.30 | 1.19 | 1.08 | ||||||||||||||||||||||||
| Loans past due 30 days or more, including past due non-accrual loans, to total loans (3) | 0.13 | 0.13 | 0.16 | 0.13 | 0.10 | 0.13 | 0.15 | 0.14 | ||||||||||||||||||||||||
(1) Ratios for interim periods annualized based on actual days.
(2) Excludes purchased loans and net charge-offs related to such loans.
(3) Excludes purchased loans, except for their inclusion in total assets.
(4) Excludes reserve for losses on unfunded loan commitments.
Bank OZK
Average Consolidated Balance Sheets and Net Interest Analysis – FTE
Unaudited
| Three Months Ended March 31, | ||||||||||||||||||||||||
| 2022 | 2021 | |||||||||||||||||||||||
| 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 | $ | 1,359,510 | $ | 609 | 0.18 | % | $ | 2,212,680 | $ | 538 | 0.10 | % | ||||||||||||
| Investment securities: | ||||||||||||||||||||||||
| Taxable | 3,378,613 | 10,611 | 1.27 | 2,422,127 | 8,083 | 1.35 | ||||||||||||||||||
| Tax-exempt – FTE | 570,987 | 3,779 | 2.68 | 1,167,827 | 4,659 | 1.62 | ||||||||||||||||||
| Non-purchased loans – FTE | 18,154,626 | 240,219 | 5.37 | 18,188,269 | 240,124 | 5.35 | ||||||||||||||||||
| Purchased loans | 499,418 | 8,170 | 6.63 | 776,097 | 11,935 | 6.24 | ||||||||||||||||||
| Total earning assets – FTE | 23,963,154 | 263,388 | 4.46 | 24,767,000 | 265,339 | 4.34 | ||||||||||||||||||
| Non-interest earning assets | 2,421,122 | 2,279,477 | ||||||||||||||||||||||
| Total assets | $ | 26,384,276 | $ | 27,046,477 | ||||||||||||||||||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||||||||||||||
| Interest bearing liabilities: | ||||||||||||||||||||||||
| Deposits: | ||||||||||||||||||||||||
| Savings and interest bearing transaction | $ | 9,522,195 | $ | 2,783 | 0.12 | % | $ | 8,337,990 | $ | 3,616 | 0.18 | % | ||||||||||||
| Time deposits | 5,760,998 | 5,709 | 0.40 | 8,996,193 | 20,734 | 0.93 | ||||||||||||||||||
| Total interest bearing deposits | 15,283,193 | 8,492 | 0.23 | 17,334,183 | 24,350 | 0.57 | ||||||||||||||||||
| Other borrowings | 756,115 | 998 | 0.54 | 756,184 | 990 | 0.53 | ||||||||||||||||||
| Subordinated notes | 346,227 | 2,574 | 3.02 | 224,092 | 3,146 | 5.69 | ||||||||||||||||||
| Subordinated debentures | 121,097 | 964 | 3.23 | 120,540 | 942 | 3.17 | ||||||||||||||||||
| Total interest bearing liabilities | 16,506,632 | 13,028 | 0.32 | 18,434,999 | 29,428 | 0.65 | ||||||||||||||||||
| Non-interest bearing liabilities: | ||||||||||||||||||||||||
| Non-interest bearing deposits | 4,773,827 | 3,972,815 | ||||||||||||||||||||||
| Other non-interest bearing liabilities | 312,408 | 328,401 | ||||||||||||||||||||||
| Total liabilities | 21,592,867 | 22,736,215 | ||||||||||||||||||||||
| Total stockholders’ equity before noncontrolling interest | 4,788,294 | 4,307,174 | ||||||||||||||||||||||
| Noncontrolling interest | 3,114 | 3,088 | ||||||||||||||||||||||
| Total liabilities and stockholders’ equity | $ | 26,384,275 | $ | 27,046,477 | ||||||||||||||||||||
| Net interest income – FTE | $ | 250,360 | $ | 235,911 | ||||||||||||||||||||
| Net interest margin – FTE | 4.24 | % | 3.86 | % | ||||||||||||||||||||
| Core spread (1) | 5.14 | % | 4.78 | % | ||||||||||||||||||||
(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, | December 31, | ||||||||||
| 2022 | 2021 | 2021 | |||||||||
| (Dollars in thousands) | |||||||||||
| Net income available to common stockholders | $ | 128,028 | $ | 148,416 | $ | 149,760 | |||||
| Average stockholders’ equity before noncontrolling interest | $ | 4,788,294 | $ | 4,307,174 | $ | 4,755,706 | |||||
| Less average preferred stock | (338,980 | ) | — | (213,693 | ) | ||||||
| Total average common stockholders’ equity | 4,449,314 | 4,307,174 | 4,542,013 | ||||||||
| Less average intangible assets: | |||||||||||
| Goodwill | (660,789 | ) | (660,789 | ) | (660,789 | ) | |||||
| Core deposit and other intangible assets, net of accumulated amortization | (7,572 | ) | (13,828 | ) | (9,032 | ) | |||||
| Total average intangibles | (668,361 | ) | (674,617 | ) | (669,821 | ) | |||||
| Average tangible common stockholders’ equity | $ | 3,780,953 | $ | 3,632,557 | $ | 3,872,192 | |||||
| Return on average common stockholders’ equity (1) | 11.67 | % | 13.97 | % | 13.08 | % | |||||
| Return on average tangible common stockholders’ equity (1) | 13.73 | % | 16.57 | % | 15.34 | % | |||||
(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, | |||||||||||
| 2022 | 2021 | 2021 | ||||||||||
| (In thousands, except per share amounts) | ||||||||||||
| Total stockholders’ equity before noncontrolling interest | $ | 4,690,057 | $ | 4,383,205 | $ | 4,836,243 | ||||||
| Less preferred stock | (338,980 | ) | — | (338,980 | ) | |||||||
| Total common stockholders' equity | 4,351,077 | 4,383,205 | 4,497,263 | |||||||||
| Less intangible assets: | ||||||||||||
| Goodwill | (660,789 | ) | (660,789 | ) | (660,789 | ) | ||||||
| Core deposit and other intangible assets, net of accumulated amortization | (6,757 | ) | (12,939 | ) | (8,274 | ) | ||||||
| Total intangibles | (667,546 | ) | (673,728 | ) | (669,063 | ) | ||||||
| Total tangible common stockholders’ equity | $ | 3,683,531 | $ | 3,709,477 | $ | 3,828,200 | ||||||
| Shares of common stock outstanding | 122,677 | 129,719 | 125,444 | |||||||||
| Book value per common share | $ | 35.47 | $ | 33.79 | $ | 35.85 | ||||||
| Tangible book value per common share | $ | 30.03 | $ | 28.60 | $ | 30.52 | ||||||
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, | ||||||||
| 2022 | 2021 | |||||||
| (Dollars in thousands) | ||||||||
| Total stockholders’ equity before noncontrolling interest | $ | 4,690,057 | $ | 4,383,205 | ||||
| Less preferred stock | (338,980 | ) | — | |||||
| Total common stockholders’ equity | 4,351,077 | 4,383,205 | ||||||
| Less intangible assets: | ||||||||
| Goodwill | (660,789 | ) | (660,789 | ) | ||||
| Core deposit and other intangible assets, net of accumulated amortization | (6,757 | ) | (12,939 | ) | ||||
| Total intangibles | (667,546 | ) | (673,728 | ) | ||||
| Total tangible common stockholders’ equity | $ | 3,683,531 | $ | 3,709,477 | ||||
| Total assets | $ | 26,562,353 | $ | 27,276,892 | ||||
| Less intangible assets: | ||||||||
| Goodwill | (660,789 | ) | (660,789 | ) | ||||
| Core deposit and other intangible assets, net of accumulated amortization | (6,757 | ) | (12,939 | ) | ||||
| Total intangibles | (667,546 | ) | (673,728 | ) | ||||
| Total tangible assets | $ | 25,894,807 | $ | 26,603,164 | ||||
| Ratio of total common stockholders’ equity to total assets | 16.38 | % | 16.07 | % | ||||
| Ratio of total tangible common stockholders’ equity to total tangible assets | 14.22 | % | 13.94 | % | ||||
Calculation of Pre-Tax Pre-Provision Net Revenue
Unaudited
| Three Months Ended | ||||||||||||
| March 31, | December 31, | |||||||||||
| 2022 | 2021 | 2021 | ||||||||||
| (Dollars in thousands) | ||||||||||||
| Income before taxes | $ | 168,913 | $ | 192,253 | $ | 193,962 | ||||||
| Provision for credit losses | 4,190 | (31,559 | ) | (7,992 | ) | |||||||
| Pre-tax pre-provision net revenue | $ | 173,103 | $ | 160,694 | $ | 185,970 | ||||||
Investor Contact: Tim Hicks (501) 978-2336
Media Contact: Candace Graham (501) 320-4165
