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Bank OZK Announces Record Fourth Quarter and Full Year 2024 Earnings
ソース: Nasdaq GlobeNewswire / 16 1 2025 16:01:44 America/New_York
LITTLE ROCK, Ark., Jan. 16, 2025 (GLOBE NEWSWIRE) -- Bank OZK (the “Bank”) (Nasdaq: OZK) today announced that net income available to common stockholders for the fourth quarter of 2024 was $178.1 million, its ninth consecutive quarterly record and a 4.1% increase from $171.1 million for the fourth quarter of 2023. For the full year of 2024, net income available to common stockholders was a record $700.3 million, a 3.8% increase from $674.6 million for the full year of 2023.
Diluted earnings per common share for the fourth quarter of 2024 were $1.56, its ninth consecutive quarterly record and a 4.0% increase from $1.50 for the fourth quarter of 2023. For the full year of 2024, diluted earnings per common share were a record $6.14, a 4.6% increase from $5.87 for the full year of 2023.
Pre-tax pre-provision net revenue (“PPNR”) was $272.2 million for the fourth quarter of 2024, a 3.7% increase from $262.6 million for the fourth quarter of 2023, but a 3.7% decrease from the third quarter of 2024. For the full year of 2024, PPNR was a record $1.11 billion, a 7.2% increase from $1.03 billion for the full year of 2023. The calculation of PPNR and the reconciliation to generally accepted accounting principles (“GAAP”) are included in the schedules accompanying this release.
Provision for credit losses was $37.2 million for the fourth quarter of 2024 compared to $43.8 million for the fourth quarter of 2023, while our net charge-offs were only $12.4 million and $4.1 million, respectively. For the full year of 2024, provision for credit losses was $175.6 million compared to $165.5 million for the full year of 2023, while our net charge-offs were only $57.4 million and $29.5 million, respectively. The Bank’s allowance for credit losses (“ACL”) was $619.4 million at December 31, 2024, an increase of $118.1 million or 23.6% compared to $501.2 million at December 31, 2023.
The Bank’s annualized returns on average assets, average common stockholders’ equity and average tangible common stockholders’ equity for the fourth quarter of 2024 were 1.87%, 13.33% and 15.22%, respectively, compared to 2.04%, 14.58% and 16.99%, respectively, for the fourth quarter of 2023. The Bank’s returns on average assets, average common stockholders’ equity and average tangible common stockholders’ equity for the full year of 2024 were 1.91%, 13.77% and 15.82%, respectively, compared to 2.20%, 14.93% and 17.50%, respectively, for the full year of 2023. The calculation of the Bank’s returns on average common stockholders’ equity and average tangible common stockholders’ equity and the reconciliations to GAAP are included in the schedules accompanying this release.
George Gleason, Chairman and Chief Executive Officer stated, “We are very pleased to have achieved record net income and earnings per share in each quarter of 2024 and for the full year. Our results for the quarter just ended were our ninth consecutive quarter of record net income and record earnings per share. Our consistent achievement of record earnings, while maintaining sound asset quality, has allowed us to accumulate capital, increase dividends and significantly expand and grow our business.”
KEY BALANCE SHEET METRICS
Loans were $29.97 billion at December 31, 2024, a 13.3% increase from $26.46 billion at December 31, 2023. Deposits were $31.04 billion at December 31, 2024, a 13.3% increase from $27.41 billion at December 31, 2023. Total assets were $38.26 billion at December 31, 2024, an 11.7% increase from $34.24 billion at December 31, 2023.
Common stockholders’ equity was $5.37 billion at December 31, 2024, an 11.8% increase from $4.80 billion at December 31, 2023. Tangible common stockholders’ equity was $4.71 billion at December 31, 2024, a 13.7% increase from $4.14 billion at December 31, 2023.
Book value per common share was $47.30 at December 31, 2024, an 11.5% increase from $42.42 at December 31, 2023. Tangible book value per common share was $41.48 at December 31, 2024, a 13.4% increase from $36.58 at December 31, 2023.
The Bank's strong earnings and earnings retention rate, among other factors, have contributed to its robust capital ratios. The Bank’s ratio of total common stockholders’ equity to total assets was 14.03% at December 31, 2024, compared to 14.02% at December 31, 2023. Its ratio of total tangible common stockholders’ equity to total tangible assets was 12.52% at December 31, 2024, compared to 12.33% at December 31, 2023. The calculations of the Bank’s total common stockholders’ equity, tangible common stockholders’ equity, tangible book value per common share, and ratio of total tangible common stockholders’ equity to total tangible assets and the reconciliations to GAAP are included in the schedules accompanying this release.
ASSET QUALITY
The Bank’s ratio of nonperforming loans to loans was 0.44% at December 31, 2024, compared to 0.23% as of December 31, 2023. The Bank’s ratio of nonperforming assets to total assets was 0.53% at December 31, 2024, compared to 0.38% as of December 31, 2023. The Bank's annualized ratio of net charge-offs of loans to average loans was 0.16% for the fourth quarter and 0.20% for the year ended December 31, 2024, compared to 0.06% for the fourth quarter and 0.13% for the year ended December 31, 2023.
MANAGEMENT COMMENTS, CONFERENCE CALL, TRANSCRIPT AND FILINGS
In connection with this release, the Bank released management comments on its quarterly results, which are available at https://ir.ozk.com. This release should be read in conjunction with management comments on the fourth quarter and full year 2024 results.
Management will conduct a conference call to take questions at 10:00 a.m. CT (11:00 a.m. ET) on Friday, January 17, 2025. Interested parties may access the conference call live via webcast on the Bank’s investor relations website at https://ir.ozk.com/news/event-calendar, or may participate via telephone by registering using this online form. Upon registration, all telephone participants will receive the dial-in number along with a unique PIN number that can be used to access the call. A replay of the conference call webcast will be archived on the Bank's website for at least 30 days.
The Bank files annual, quarterly and current reports, proxy materials, and other information required by the Securities Exchange Act of 1934 with the Federal Deposit Insurance Corporation (“FDIC”), copies of which are available electronically at the FDIC’s website at https://efr.fdic.gov/fcxweb/efr/index.html and are also available on the Bank’s investor relations website at ir.ozk.com. To receive automated email alerts for these materials please visit https://ir.ozk.com/other/email-alerts to sign up.
NON-GAAP FINANCIAL MEASURES
This release contains certain non-GAAP financial measures. The Bank uses these non-GAAP financial measures, specifically return on average common stockholders’ equity, return on average tangible common stockholders’ equity, tangible book value per common share, total common stockholders’ equity, total tangible common stockholders’ equity, the ratio of total tangible common stockholders’ equity to total tangible assets, and PPNR, to assess the strength of its capital, its ability to generate earnings on tangible capital invested by its shareholders and trends in its net revenue. These measures adjust GAAP financial measures to exclude certain financial measures, such as, preferred stock, goodwill, provision for income taxes, provision for credit loses, and other measures. Management believes presentation of these non-GAAP financial measures provides useful supplemental information which contributes to a proper understanding of the financial results and capital levels of the Bank. These non-GAAP disclosures should not be viewed as a substitute for financial results determined in accordance with GAAP, and they are not necessarily comparable to non-GAAP performance measures that may be presented by other banks. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are included in the tables at the end of this release under the caption “Reconciliation of Non-GAAP Financial Measures.”
FORWARD-LOOKING STATEMENTS
This press release and other communications by the Bank include certain “forward-looking statements” regarding the Bank’s plans, expectations, thoughts, beliefs, estimates, goals and outlook for the future that are intended to be covered by the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on management’s expectations as well as certain assumptions and estimates made by, and information available to, management at the time. Those statements are not guarantees of future results or performance and are subject to certain known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those expressed in, or implied by, such forward-looking statements. These risks, uncertainties and other factors include, but are not limited to: potential delays or other problems in implementing the Bank’s growth, expansion and acquisition strategies, including obtaining regulatory or other approvals, delays in acquiring satisfactory sites, obtaining permits and designing, constructing and opening new offices, relocating, selling or closing existing offices, or integrating any acquisitions; the availability of and access to capital; possible downgrades in the Bank’s credit ratings or outlook which could increase the costs of or decrease the availability of funding from capital markets; the ability to attract new or retain existing deposits or to retain or grow loans, including growth from unfunded closed loans; the ability to generate future revenue growth or to control future growth in non-interest expense; interest rate fluctuations, including changes in the yield curve between short-term and long-term interest rates or changes in the relative relationships of various interest rate indices; competitive factors and pricing pressures, including their effect on the Bank’s net interest margin or core spread; general economic, unemployment, credit market and real estate market conditions, and the effect of such conditions on the creditworthiness of borrowers, collateral values, the value of investment securities and asset recovery values; conditions within the banking industry; recently enacted and potential new laws and regulatory requirements or changes to existing laws and regulatory requirements, including changes affecting oversight of the financial services industry, changes intended to manage or mitigate climate and related environmental risks or changes in the interpretation and enforcement of such laws and requirements; changes as a result of the recent U.S. presidential and congressional elections; impacts of potential changes in U.S. tax, tariff and immigration laws, regulations and policies; the costs and expenses to comply with new and/or existing legislation and regulatory requirements; uncertainty regarding changes in U.S. government monetary and fiscal policy; the impact of any U.S. federal government shutdown or budgetary crisis; FDIC special assessments or changes to regular assessments; the ability to keep pace with technological changes, including changes regarding artificial intelligence and maintaining cybersecurity; the impact of any failure in, or breach of, our operational or security systems or infrastructure, or those of third parties with whom we do business or others, including as a result of cyberattacks or an increase in the incidence or severity of fraud, illegal payments, security breaches or other illegal acts impacting the Bank, its customers or others; natural disasters; acts of war or terrorism; the potential impact of continuing inflationary pressures; the potential impact of supply chain disruptions; national or international political instability or military conflict, including the conflict in the Middle East and the ongoing war in Ukraine; competition for and costs of recruiting and retaining qualified personnel; impairment of our goodwill; adoption of new accounting standards, or changes in existing standards; and adverse results (including costs, fines, reputational harm and/or other negative effects) from current or future litigation, regulatory examinations or other legal and/or regulatory actions or rulings as well as other factors identified in this communication or as detailed from time to time in our public filings, including those factors described in the disclosures under the headings “Forward-Looking Information” and “Item 1A. Risk Factors” in our most recent Annual Report on Form 10-K for the year ended December 31, 2023 and our quarterly reports on Form 10-Q. Should one or more of the foregoing risks materialize, or should underlying assumptions prove incorrect, actual results or outcomes may vary materially from those described in, or implied by, such forward-looking statements. The Bank disclaims any obligation to update or revise any forward-looking statements based on the occurrence of future events, the receipt of new information or otherwise.
GENERAL INFORMATION
Bank OZK (Nasdaq: OZK) is a regional bank providing innovative financial solutions delivered by expert bankers with a relentless pursuit of excellence. Established in 1903, Bank OZK conducts banking operations in more than 240 offices in nine states including Arkansas, Georgia, Florida, North Carolina, Texas, Tennessee, New York, California and Mississippi and had $38.26 billion in total assets as of December 31, 2024. For more information, visit www.ozk.com.
Bank OZK
Consolidated Balance Sheets
UnauditedDecember 31, 2024 2023 (Dollars in thousands) ASSETS Cash and cash equivalents $ 2,781,101 $ 2,149,529 Investment securities – available for sale (“AFS”) 2,836,150 3,244,371 Federal Home Loan Bank of Dallas (“FHLB”) and other bankers’ bank stocks 39,930 50,400 Loans 29,968,867 26,459,075 Allowance for loan losses (465,547 ) (339,394 ) Net Loans 29,503,320 26,119,681 Premises and equipment, net 739,111 676,821 Foreclosed assets 69,381 61,720 Accrued interest receivable 174,025 170,110 Bank owned life insurance (“BOLI”) 829,405 808,490 Goodwill 660,789 660,789 Other, net 625,640 295,546 Total assets $ 38,258,852 $ 34,237,457 LIABILITIES AND STOCKHOLDERS’ EQUITY Deposits: Demand non-interest bearing $ 3,769,543 $ 4,095,874 Savings and interest bearing transaction 9,954,723 9,074,296 Time 17,318,806 14,234,973 Total deposits 31,043,072 27,405,143 Other borrowings 420,813 805,318 Subordinated notes 348,575 347,761 Subordinated debentures 113,652 121,652 Reserve for losses on unfunded loan commitments 153,813 161,834 Accrued interest payable and other liabilities 472,733 255,773 Total liabilities 32,552,658 29,097,481 Commitments and contingencies Stockholders’ equity: Preferred Stock: $0.01 par value; 100,000,000 shares authorized;
14,000,000 issued and outstanding at December 31, 2024 and
December 31, 2023338,980 338,980 Common Stock: $0.01 par value; 300,000,000 shares authorized;
113,457,726 and 113,148,672 shares issued and outstanding at
December 31, 2024 and December 31, 2023, respectively1,135 1,131 Additional paid-in capital 1,625,506 1,612,446 Retained earnings 3,816,138 3,283,818 Accumulated other comprehensive loss (76,136 ) (97,374 ) Total stockholders’ equity before noncontrolling interest 5,705,623 5,139,001 Noncontrolling interest 571 975 Total stockholders’ equity 5,706,194 5,139,976 Total liabilities and stockholders’ equity $ 38,258,852 $ 34,237,457 Bank OZK
Consolidated Statements of Income
UnauditedThree Months Ended
December 31,Year Ended
December 31,2024 2023 2024 2023 (Dollars in thousands, except per share amounts) Interest income: Loans $ 615,384 $ 563,256 $ 2,458,551 $ 1,991,546 Investment securities: Taxable 8,736 9,667 34,736 39,429 Tax-exempt 12,192 10,670 46,067 38,957 Deposits with banks 26,324 21,901 110,223 58,241 Total interest income 662,636 605,494 2,649,577 2,128,173 Interest expense: Deposits 273,119 218,474 1,084,855 627,050 Other borrowings 5,153 11,329 10,819 41,669 Subordinated notes 2,631 2,631 10,439 10,439 Subordinated debentures 2,335 2,512 9,740 9,530 Total interest expense 283,238 234,946 1,115,853 688,688 Net interest income 379,398 370,548 1,533,724 1,439,485 Provision for credit losses 37,174 43,832 175,552 165,470 Net interest income after provision for credit losses 342,224 326,716 1,358,172 1,274,015 Non-interest income: Deposit-related fees: NSF fees — 1,129 — 4,228 Overdraft fees 3,488 3,571 13,842 13,831 All other service charges 7,537 7,333 29,495 27,995 Loan-related fees 8,786 6,755 28,144 18,920 BOLI income: Increase in cash surrender value 5,807 5,401 22,677 20,696 Death benefits — 2,966 1,344 2,966 Trust income 2,632 2,165 9,567 8,524 Gains on sales of other assets 582 3,288 3,417 9,029 Net gains on investment securities — 1,177 560 3,243 Other 4,110 3,242 15,367 13,117 Total non-interest income 32,942 37,027 124,413 122,549 Non-interest expense: Salaries and employee benefits 77,719 66,270 296,016 258,846 Net occupancy and equipment 17,901 17,234 71,676 72,591 Other operating expenses 44,507 61,507 183,601 198,124 Total non-interest expense 140,127 145,011 551,293 529,561 Income before taxes 235,039 218,732 931,292 867,003 Provision for income taxes 52,831 43,600 214,789 176,164 Net income 182,208 175,132 716,503 690,839 Earnings attributable to noncontrolling interest (26 ) (6 ) (47 ) (56 ) Preferred stock dividends 4,047 4,047 16,187 16,187 Net income available to common stockholders $ 178,135 $ 171,079 $ 700,269 $ 674,596 Basic earnings per common share $ 1.57 $ 1.51 $ 6.16 $ 5.89 Diluted earnings per common share $ 1.56 $ 1.50 $ 6.14 $ 5.87 Bank OZK
Consolidated Statements of Stockholders’ Equity
UnauditedPreferred Stock Common Stock Additional
Paid-in
CapitalRetained Earnings Accumulated Other Comprehensive (Loss) Income Non-Controlling Interest Total (Dollars in thousands, except per share amounts) Three months ended December 31, 2024: Balances – September 30, 2024 $ 338,980 $ 1,135 $ 1,619,832 $ 3,684,869 $ (51,957 ) $ 696 $ 5,593,555 Net income — — — 182,208 — — 182,208 Earnings attributable to noncontrolling interest — — — (26 ) — 26 — Total other comprehensive income — — — — (24,179 ) — (24,179 ) Preferred stock dividends, $0.28906 per share — — — (4,047 ) — — (4,047 ) Common stock dividends, $0.41 per share — — — (46,866 ) — — (46,866 ) Return of capital paid to non-controlling interest — — — — — (151 ) (151 ) Issuance of 11,290 shares of common stock pursuant to stock-based compensation plans — — 417 — — — 417 Stock-based compensation expense — — 5,257 — — — 5,257 Forfeitures of 3,450 shares of unvested restricted common stock — — — — — — — Balances – December 31, 2024 $ 338,980 $ 1,135 $ 1,625,506 $ 3,816,138 $ (76,136 ) $ 571 $ 5,706,194 Year ended December 31, 2024: Balances – December 31, 2023 $ 338,980 $ 1,131 $ 1,612,446 $ 3,283,818 $ (97,374 ) $ 975 $ 5,139,976 Cumulative effect of change in accounting principle — — — 12,690 — — 12,690 Balances – January 1, 2024 $ 338,980 $ 1,131 $ 1,612,446 $ 3,296,508 $ (97,374 ) $ 975 $ 5,152,666 Net income — — — 716,503 — — 716,503 Earnings attributable to noncontrolling
interest— — — (47 ) — 47 — Total other comprehensive income — — — — 21,238 — 21,238 Preferred stock dividends, $1.15624 per share — — — (16,187 ) — — (16,187 ) Common stock dividends, $1.58 per share — — — (180,639 ) — — (180,639 ) Return of capital to non-controlling interest — — — — — (451 ) (451 ) Issuance of 532,941 shares of common stock pursuant to stock-based compensation plans — 6 856 — — — 862 Repurchase and cancellation of 11,903 shares of common stock under share repurchase program, including excise taxes — — (462 ) — — — (462 ) Repurchase and cancellation of 184,415 shares of common stock withheld for tax pursuant to stock-based compensation plans — (2 ) (8,008 ) — — — (8,010 ) Stock-based compensation expense — — 20,674 — — — 20,674 Forfeitures of 27,569 shares of unvested restricted common stock — — — — — — — Balances – December 31, 2024 $ 338,980 $ 1,135 $ 1,625,506 $ 3,816,138 $ (76,136 ) $ 571 $ 5,706,194 Bank OZK
Consolidated Statements of Stockholders’ Equity
UnauditedPreferred Stock Common Stock Additional
Paid-in
CapitalRetained Earnings Accumulated Other Comprehensive (Loss) Income Non-Controlling Interest Total (Dollars in thousands, except per share amounts) Three months ended December 31, 2023: Balances – September 30, 2023 $ 338,980 $ 1,131 $ 1,607,510 $ 3,154,869 $ (198,986 ) $ 1,409 $ 4,904,913 Net income — — — 175,132 — — 175,132 Earnings attributable to noncontrolling interest — — — (6 ) — 6 — Total other comprehensive income — — — — 101,612 — 101,612 Preferred stock dividends, $0.28906 per share — — — (4,047 ) — — (4,047 ) Common stock dividends, $0.37 per share — — — (42,130 ) — — (42,130 ) Return of capital to non-controlling interest — — — — — (440 ) (440 ) Issuance of 17,018 shares of common stock pursuant to stock-based compensation plans — — 547 — — — 547 Stock-based compensation expense — — 4,389 — — — 4,389 Forfeitures of 4,578 shares of unvested restricted common stock — — — — — — — Balances – December 31, 2023 $ 338,980 $ 1,131 $ 1,612,446 $ 3,283,818 $ (97,374 ) $ 975 $ 5,139,976 Year ended December 31, 2023: Balances – December 31, 2022 $ 338,980 $ 1,172 $ 1,753,941 $ 2,773,135 $ (177,649 ) $ 1,359 $ 4,690,938 Net income — — — 690,839 — — 690,839 Earnings attributable to noncontrolling interest — — — (56 ) — 56 — Total other comprehensive income — — — — 80,275 — 80,275 Preferred stock dividends, $1.15624 per share — — — (16,187 ) — — (16,187 ) Common stock dividends, $1.42 per share — — — (163,913 ) — — (163,913 ) Return of capital to non-controlling interest — — — — — (440 ) (440 ) Issuance of 522,651 shares of common stock pursuant to stock-based compensation plans — 5 1,166 — — — 1,171 Repurchase and cancellation of 4,304,239 shares of common stock under share repurchase program, including excise taxes — (44 ) (151,421 ) — — — (151,465 ) Repurchase and cancellation of 215,362 shares of common stock withheld for tax pursuant to stock-based compensation plans. — (2 ) (8,672 ) — — — (8,674 ) Stock-based compensation expense — — 17,432 — — — 17,432 Forfeitures of 31,306 shares of unvested restricted common stock — — — — — — — Balances – December 31, 2023 $ 338,980 $ 1,131 $ 1,612,446 $ 3,283,818 $ (97,374 ) $ 975 $ 5,139,976 Bank OZK
Summary of Non-Interest Expense
UnauditedThree Months Ended
December 31,Year Ended
December 31,2024 2023 2024 2023 (Dollars in thousands) Salaries and employee benefits $ 77,719 $ 66,270 $ 296,016 $ 258,846 Net occupancy and equipment 17,901 17,234 71,676 72,591 Other operating expenses: Software and data processing 10,964 10,577 46,980 39,212 Professional and outside services 6,600 6,233 24,872 21,423 Deposit insurance and assessments 5,975 15,803 25,584 30,351 Advertising and public relations 3,702 5,153 20,576 16,150 Amortization of CRA and tax credit investments(1) — 7,618 — 27,768 Other 17,266 16,123 65,589 63,220 Total non-interest expense $ 140,127 $ 145,011 $ 551,293 $ 529,561 (1) Effective January 1, 2024, the Bank adopted ASU 2023-02, Investments-Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method, which resulted in the amortization of the Bank's CRA and tax credit investments being included in income tax expense instead of non-interest expense.
Bank OZK
Summary of Total Loans Outstanding
UnauditedDecember 31, 2024 2023 (Dollars in thousands) Real estate: Residential 1-4 family $ 1,323,435 4.4 % $ 961,338 3.6 % Non-farm/non-residential 7,842,692 26.2 5,309,239 20.1 Construction/land development 9,522,676 31.8 11,653,487 44.0 Agricultural 296,898 1.0 256,423 1.0 Multifamily residential 3,272,635 10.9 2,064,106 7.8 Total real estate 22,258,336 74.3 20,244,593 76.5 Commercial and industrial 1,728,801 5.8 1,269,610 4.8 Consumer 3,659,713 12.2 2,965,042 11.2 Other 2,322,017 7.7 1,979,830 7.5 Total loans 29,968,867 100.0 % 26,459,075 100.0 % Allowance for loan losses (465,547 ) (339,394 ) Net loans $ 29,503,320 $ 26,119,681 Bank OZK
Allowance for Credit Losses
UnauditedAllowance for Loan Losses Reserve for Losses on Unfunded Loan Commitments Total Allowance for Credit Losses (Dollars in thousands) Three months ended December 31, 2024: Balances – September 30, 2024 $ 420,058 $ 174,479 $ 594,537 Net charge-offs (12,351 ) — (12,351 ) Provision for credit losses 57,840 (20,666 ) 37,174 Balances – December 31, 2024 $ 465,547 $ 153,813 $ 619,360 Year ended December 31, 2024: Balances – December 31, 2023 $ 339,394 $ 161,834 $ 501,228 Net charge-offs (57,420 ) — (57,420 ) Provision for credit losses 183,573 (8,021 ) 175,552 Balances – December 31, 2024 $ 465,547 $ 153,813 $ 619,360 Three months ended December 31, 2023: Balances – September 30, 2023 $ 303,358 $ 158,128 $ 461,486 Net charge-offs (4,090 ) — (4,090 ) Provision for credit losses 40,126 3,706 43,832 Balances – December 31, 2023 $ 339,394 $ 161,834 $ 501,228 Year ended December 31, 2023: Balances – December 31, 2022 $ 208,858 $ 156,419 $ 365,277 Net charge-offs (29,519 ) — (29,519 ) Provision for credit losses 160,055 5,415 165,470 Balances – December 31, 2023 $ 339,394 $ 161,834 $ 501,228 Bank OZK
Summary of Deposits – By Customer Type
UnauditedDecember 31, 2024 2023 (Dollars in thousands) Non-interest bearing $ 3,769,543 12.1 % $ 4,095,874 14.9 % Interest bearing: Consumer and commercial: Consumer – Non-Time 2,983,401 9.6 2,792,199 10.2 Consumer – Time 13,446,545 43.3 10,216,217 37.3 Commercial – Non-Time 2,728,307 8.8 2,439,175 8.9 Commercial – Time 970,320 3.1 767,566 2.8 Public funds 3,964,350 12.8 3,725,766 13.6 Brokered 2,611,464 8.4 2,655,317 9.7 Reciprocal 569,142 1.9 713,029 2.6 Total deposits $ 31,043,072 100.0 % $ 27,405,143 100.0 % Bank OZK
Selected Consolidated Financial Data
UnauditedThree Months Ended
December 31,Year Ended
December 31,2024 2023 %
Change2024 2023 %
Change(Dollars in thousands, except per share amounts) Income statement data: Net interest income $ 379,398 $ 370,548 2.4 % $ 1,533,724 $ 1,439,485 6.5 % Provision for credit losses 37,174 43,832 (15.2 ) 175,552 165,470 6.1 Non-interest income 32,942 37,027 (11.0 ) 124,413 122,549 1.5 Non-interest expense 140,127 145,011 (3.4 ) 551,293 529,561 4.1 Net income 182,208 175,132 4.0 716,503 690,839 3.7 Preferred stock dividends 4,047 4,047 — 16,187 16,187 — Net income available to common stockholders 178,135 171,079 4.1 700,269 674,596 3.8 Pre-tax pre-provision net revenue (1) 272,213 262,564 3.7 1,106,844 1,032,473 7.2 Common share and per common share data: Diluted earnings per common share $ 1.56 $ 1.50 4.0 % $ 6.14 $ 5.87 4.6 % Basic earnings per common share 1.57 1.51 4.0 6.16 5.89 4.6 Common stock dividends per share 0.41 0.37 10.8 1.58 1.42 11.3 Book value per common share 47.30 42.42 11.5 47.30 42.42 11.5 Tangible book value per common share (1) 41.48 36.58 13.4 41.48 36.58 13.4 Weighted-average diluted shares outstanding (thousands) 114,101 113,756 0.3 114,015 114,833 (0.7 ) End of period shares outstanding (thousands) 113,458 113,149 0.3 113,458 113,149 0.3 Balance sheet data at period end: Total assets $ 38,258,852 $ 34,237,457 11.7 % $ 38,258,852 $ 34,237,457 11.7 % Loans 29,968,867 26,459,075 13.3 29,968,867 26,459,075 13.3 Allowance for loan losses 465,547 339,394 37.2 465,547 339,394 37.2 Foreclosed assets 69,381 61,720 12.4 69,381 61,720 12.4 Investment securities – AFS 2,836,150 3,244,371 (12.6 ) 2,836,150 3,244,371 (12.6 ) Deposits 31,043,072 27,405,143 13.3 31,043,072 27,405,143 13.3 Other borrowings 420,813 805,318 (47.7 ) 420,813 805,318 (47.7 ) Unfunded loan commitments 19,078,633 20,561,029 (7.2 ) 19,078,633 20,561,029 (7.2 ) Reserve for losses on unfunded loan commitments 153,813 161,834 (5.0 ) 153,813 161,834 (5.0 ) Total common stockholders’ equity (1) 5,366,643 4,800,021 11.8 5,366,643 4,800,021 11.8 Total tangible common stockholders’ equity (1) 4,705,854 4,139,232 13.7 4,705,854 4,139,232 13.7 Accumulated other comprehensive loss (76,136 ) (97,374 ) (76,136 ) (97,374 ) Loan to deposit ratio 96.54 % 96.55 % 96.54 % 96.55 % Selected ratios: Return on average assets (2) 1.87 % 2.04 % 1.91 % 2.20 % Return on average common stockholders’ equity (1) (2) 13.33 14.58 13.77 14.93 Return on average tangible common stockholders’ equity (1) (2) 15.22 16.99 15.82 17.50 Total tangible common stockholders’ equity to total tangible assets (1) 12.52 12.33 12.52 12.33 Net interest margin – FTE (2) 4.33 4.82 4.56 5.16 Efficiency ratio 33.71 35.33 33.00 33.67 Net charge-offs to average loans (2) 0.16 0.06 0.20 0.13 Nonperforming loans to loans 0.44 0.25 0.44 0.25 Nonperforming assets to total assets 0.53 0.38 0.53 0.38 Allowance for loan losses to loans 1.55 1.28 1.55 1.28 Allowance for credit losses to loans and unfunded loan commitments 1.26 1.07 1.26 1.07 Other information: Non-accrual loans $ 131,494 $ 66,677 $ 131,494 $ 66,677 (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, total tangible common stockholders' equity to total tangible assets and the reconciliations to GAAP are included in the schedules accompanying this release.
(2) Ratios for interim periods annualized based on actual days.Bank OZK
Selected Consolidated Financial Data (continued)
UnauditedThree Months Ended December 31, 2024 September 30, 2024 %
Change(Dollars in thousands, except per share amounts) Income statement data: Net interest income $ 379,398 $ 389,398 (2.6 %) Provision for credit losses 37,174 46,443 (20.0 ) Non-interest income 32,942 33,605 (2.0 ) Non-interest expense 140,127 140,401 (0.2 ) Net income 182,208 181,206 0.6 Preferred stock dividends 4,047 4,047 — Net income available to common stockholders 178,135 177,147 0.6 Pre-tax pre-provision net revenue (1) 272,213 282,602 (3.7 ) Common share and per common share data: Diluted earnings per common share $ 1.56 $ 1.55 0.6 % Basic earnings per common share 1.57 1.56 0.6 Common stock dividends per share 0.41 0.40 2.5 Book value per common share 47.30 46.31 2.1 Tangible book value per common share (1) 41.48 40.49 2.4 Weighted-average diluted shares outstanding (thousands) 114,101 114,031 0.1 End of period shares outstanding (thousands) 113,458 113,450 — Balance sheet data at period end: Total assets $ 38,258,852 $ 37,441,804 2.2 % Loans 29,968,867 29,218,144 2.6 Allowance for loan losses 465,547 420,058 10.8 Foreclosed assets 69,381 77,949 (11.0 ) Investment securities – AFS 2,836,150 2,952,022 (3.9 ) Deposits 31,043,072 30,571,613 1.5 Other borrowings 420,813 151,035 178.6 Unfunded loan commitments 19,078,633 19,307,972 (1.2 ) Reserve for losses on unfunded loan commitments 153,813 174,479 (11.8 ) Total common stockholders’ equity (1) 5,366,643 5,253,879 2.1 Total tangible common stockholders’ equity (1) 4,705,854 4,593,090 2.5 Accumulated other comprehensive loss (76,136 ) (51,957 ) Loan to deposit ratio 96.54 % 95.57 % Selected ratios: Return on average assets (2) 1.87 % 1.90 % Return on average common stockholders’ equity (1) (2) 13.33 13.65 Return on average tangible common stockholders’ equity (1) (2) 15.22 15.65 Total tangible common stockholders’ equity to total tangible assets (1) 12.52 12.49 Net interest margin – FTE (2) 4.33 4.55 Efficiency ratio 33.71 32.95 Net charge-offs to average loans (2) 0.16 0.36 Nonperforming loans to loans 0.44 0.60 Nonperforming assets to total assets 0.53 0.68 Allowance for loan losses to loans 1.55 1.44 Allowance for credit losses to loans and unfunded loan commitments 1.26 1.23 Other information: Non-accrual loans $ 131,494 $ 175,665 (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, total tangible common stockholders' equity to total tangible assets and the reconciliations to GAAP are included in the schedules accompanying this release.
(2) Ratios for interim periods annualized based on actual days.Bank OZK
Supplemental Quarterly Financial Data
Unaudited12/31/24 9/30/24 6/30/24 3/31/24 12/31/23 (Dollars in thousands, except per share amounts) Earnings summary: Net interest income $ 379,398 $ 389,398 $ 387,994 $ 376,934 $ 370,548 Federal tax (FTE) adjustment 3,324 3,151 3,037 3,030 2,925 Net interest income (FTE) 382,722 392,549 391,031 379,964 373,473 Provision for credit losses (37,174 ) (46,443 ) (49,012 ) (42,923 ) (43,832 ) Non-interest income 32,942 33,605 28,782 29,084 37,027 Non-interest expense (140,127 ) (140,401 ) (137,451 ) (133,314 ) (145,011 ) Pre-tax income (FTE) 238,363 239,310 233,350 232,811 221,657 FTE adjustment (3,324 ) (3,151 ) (3,037 ) (3,030 ) (2,925 ) Provision for income taxes (52,831 ) (54,953 ) (52,778 ) (54,226 ) (43,600 ) Noncontrolling interest (26 ) (12 ) 8 (18 ) (6 ) Preferred stock dividend (4,047 ) (4,047 ) (4,047 ) (4,047 ) (4,047 ) Net income available to common stockholders $ 178,135 $ 177,147 $ 173,496 $ 171,490 $ 171,079 Earnings per common share – diluted $ 1.56 $ 1.55 $ 1.52 $ 1.51 $ 1.50 Pre-tax pre-provision net revenue (1) $ 272,213 $ 282,602 $ 279,325 $ 272,704 $ 262,564 Selected balance sheet data at period end: Total assets $ 38,258,852 $ 37,441,804 $ 36,836,173 $ 36,029,904 $ 34,237,457 Loans 29,968,867 29,218,144 28,673,685 28,031,348 26,459,075 Investment securities – AFS 2,836,150 2,952,022 2,981,929 3,072,391 3,244,371 Deposits 31,043,072 30,571,613 29,943,663 29,406,070 27,405,143 Unfunded loan commitments 19,078,633 19,307,972 19,737,557 20,458,796 20,561,029 Allowance for credit losses: Balance at beginning of period $ 594,537 $ 574,101 $ 536,887 $ 501,228 $ 461,486 Net charge-offs (12,351 ) (26,007 ) (11,798 ) (7,264 ) (4,090 ) Provision for credit losses 37,174 46,443 49,012 42,923 43,832 Balance at end of period $ 619,360 $ 594,537 $ 574,101 $ 536,887 $ 501,228 Allowance for loan losses $ 465,547 $ 420,058 $ 407,079 $ 365,935 $ 339,394 Reserve for losses on unfunded loan commitments 153,813 174,479 167,022 170,952 161,834 Total allowance for credit losses $ 619,360 $ 594,537 $ 574,101 $ 536,887 $ 501,228 Selected ratios: Net interest margin – FTE (2) 4.33 % 4.55 % 4.68 % 4.71 % 4.82 % Efficiency ratio 33.71 32.95 32.74 32.59 35.33 Net charge-offs to average loans (2) 0.16 0.36 0.17 0.11 0.06 Nonperforming loans to loans 0.44 0.60 0.30 0.22 0.25 Nonperforming assets to total assets 0.53 0.68 0.42 0.34 0.38 Allowance for loan losses to loans 1.55 1.44 1.42 1.31 1.28 Allowance for credit losses to loans and unfunded loan commitments 1.26 1.23 1.19 1.11 1.07 Loans past due 30 days or more, including past due non-accrual loans, to total loans 0.17 0.14 0.17 0.18 0.21 (1) Calculations of pre-tax pre-provision net revenue and the reconciliation to GAAP are included in the schedules accompanying this release.
(2) Ratios for interim periods annualized based on actual days.Bank OZK
Average Consolidated Balance Sheets and Net Interest Analysis – FTE
UnauditedThree Months Ended December 31, Year Ended December 31, 2024 2023 2024 2023 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 $ 2,263,875 $ 26,324 4.63 % $ 1,637,395 $ 21,902 5.31 % $ 2,138,560 $ 110,223 5.15 % $ 1,164,595 $ 58,241 5.00 % Investment securities: Taxable 1,679,300 8,736 2.07 2,143,606 9,667 1.79 1,846,639 34,736 1.88 2,299,254 39,429 1.71 Tax-exempt – FTE 1,262,676 15,432 4.86 1,097,750 13,506 4.88 1,195,851 58,312 4.88 1,049,642 49,313 4.70 Total loans – FTE 29,952,752 615,468 8.17 25,861,611 563,344 8.64 28,711,132 2,458,847 8.56 23,580,165 1,991,953 8.45 Total earning assets – FTE 35,158,603 665,960 7.54 30,740,362 608,419 7.85 33,892,182 2,662,118 7.85 28,093,656 2,138,936 7.61 Non-interest earning assets 2,679,566 2,538,592 2,723,606 2,550,276 Total assets $ 37,838,169 $ 33,278,954 $ 36,615,788 $ 30,643,932 LIABILITIES AND STOCKHOLDERS’ EQUITY Interest bearing liabilities: Deposits: Savings and interest bearing transaction $ 9,371,509 $ 64,674 2.75 % $ 9,004,724 $ 64,165 2.83 % $ 9,247,175 $ 269,072 2.91 % $ 9,152,060 $ 211,498 2.31 % Time deposits 17,326,058 208,445 4.79 13,280,889 154,309 4.61 16,622,440 815,783 4.91 10,543,800 415,552 3.94 Total interest bearing deposits 26,697,567 273,119 4.07 22,285,613 218,474 3.89 25,869,615 1,084,855 4.19 19,695,860 627,050 3.18 Other borrowings (1) 500,286 5,153 4.10 863,828 11,329 5.20 257,055 10,819 4.21 803,797 41,669 5.18 Subordinated notes 348,475 2,631 3.00 347,661 2,631 3.00 348,170 10,439 3.00 347,356 10,439 3.01 Subordinated debentures 121,565 2,335 7.64 121,652 2,512 8.19 121,630 9,740 8.01 121,648 9,530 7.83 Total interest bearing liabilities 27,667,893 283,238 4.07 23,618,754 234,946 3.95 26,596,470 1,115,853 4.20 20,968,661 688,688 3.28 Non-interest bearing liabilities: Non-interest bearing deposits 3,812,596 4,150,323 3,917,887 4,315,200 Other non-interest bearing liabilities 701,650 513,326 674,873 502,732 Total liabilities 32,182,139 28,282,403 31,189,230 25,786,593 Total stockholders’ equity before noncontrolling interest 5,655,337 4,995,217 5,425,658 4,855,976 Noncontrolling interest 693 1,334 900 1,363 Total liabilities and stockholders’ equity $ 37,838,169 $ 33,278,954 $ 36,615,788 $ 30,643,932 Net interest income – FTE $ 382,722 $ 373,473 $ 1,546,265 $ 1,450,248 Net interest margin – FTE 4.33 % 4.82 % 4.56 % 5.16 % Core spread (2) 4.10 % 4.75 % 4.37 % 5.27 % (1) The interest expense and the rates paid related to "other borrowings" include capitalized interest which totaled $0.8 million and $2.3 million for the fourth quarter and full year of 2024. Capitalized interest was not material for the fourth quarter and full year of 2023. Excluding capitalized interest from the "other borrowings" expense calculation would result in a rate of 4.76% and 5.12% for the fourth quarter and full year of 2024.
(2) Core spread is the difference between the yield on the Bank’s 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
UnauditedThree Months Ended December 31, September 30, Year Ended December 31, 2024 2023 2024 2024 2023 (Dollars in thousands) Net income available to common stockholders $ 178,135 $ 171,079 $ 177,147 $ 700,269 $ 674,596 Average stockholders’ equity before noncontrolling interest $ 5,655,337 $ 4,995,217 $ 5,502,526 $ 5,425,658 $ 4,855,976 Less average preferred stock (338,980 ) (338,980 ) (338,980 ) (338,980 ) (338,980 ) Total average common stockholders’ equity 5,316,357 4,656,237 5,163,546 5,086,678 4,516,996 Less average intangible assets: Goodwill (660,789 ) (660,789 ) (660,789 ) (660,789 ) (660,789 ) Core deposit and other intangible assets, net of accumulated amortization — — — — (821 ) Total average intangibles (660,789 ) (660,789 ) (660,789 ) (660,789 ) (661,610 ) Average tangible common stockholders’ equity $ 4,655,568 $ 3,995,448 $ 4,502,757 $ 4,425,889 $ 3,855,386 Return on average common stockholders’ equity(1) 13.33 % 14.58 % 13.65 % 13.77 % 14.93 % Return on average tangible common stockholders’ equity(1) 15.22 % 16.99 % 15.65 % 15.82 % 17.50 % (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
UnauditedDecember 31, September 30, 2024 2023 2024 (In thousands, except per share amounts) Total stockholders’ equity before noncontrolling interest $ 5,705,623 $ 5,139,001 $ 5,592,859 Less preferred stock (338,980 ) (338,980 ) (338,980 ) Total common stockholders’ equity $ 5,366,643 $ 4,800,021 $ 5,253,879 Less goodwill (660,789 ) (660,789 ) (660,789 ) Total tangible common stockholders’ equity $ 4,705,854 $ 4,139,232 $ 4,593,090 Shares of common stock outstanding 113,458 113,149 113,450 Book value per common share $ 47.30 $ 42.42 $ 46.31 Tangible book value per common share $ 41.48 $ 36.58 $ 40.49 Calculation of Total Common Stockholders’ Equity,
Total Tangible Common Stockholders’ Equity
and the Ratio of Total Tangible Common Stockholders’ Equity
to Total Tangible Assets
UnauditedDecember 31, September 30, 2024 2023 2024 (Dollars in thousands) Total stockholders’ equity before noncontrolling interest $ 5,705,623 $ 5,139,001 $ 5,592,859 Less preferred stock (338,980 ) (338,980 ) (338,980 ) Total common stockholders’ equity $ 5,366,643 $ 4,800,021 $ 5,253,879 Less goodwill (660,789 ) (660,789 ) (660,789 ) Total tangible common stockholders’ equity 4,705,854 4,139,232 4,593,090 Total assets $ 38,258,852 $ 34,237,457 $ 37,441,804 Less goodwill $ (660,789 ) $ (660,789 ) $ (660,789 ) Total tangible assets $ 37,598,063 $ 33,576,668 $ 36,781,015 Ratio of total common stockholders’ equity to total assets 14.03 % 14.02 % 14.03 % Ratio of total tangible common stockholders’ equity to total tangible assets 12.52 % 12.33 % 12.49 % Calculation of Pre-Tax Pre-Provision Net Revenue
UnauditedThree Months Ended Year Ended Dec 31, Sept 30, June 30, March 31, Dec 31, December 31, 2024 2024 2024 2024 2023 2024 2023 (Dollars in thousands) Net income available to common stockholders $ 178,135 $ 177,147 $ 173,496 $ 171,490 $ 171,079 $ 700,269 $ 674,596 Preferred stock dividends 4,047 4,047 4,047 4,047 4,047 16,187 16,187 Earnings attributable to noncontrolling interest 26 12 (8 ) 18 6 47 56 Provision for income taxes 52,831 54,953 52,778 54,226 43,600 214,789 176,164 Provision for credit losses 37,174 46,443 49,012 42,923 43,832 175,552 165,470 Pre-tax pre-provision net revenue $ 272,213 $ 282,602 $ 279,325 $ 272,704 $ 262,564 $ 1,106,844 $ 1,032,473 Investor Contact: Jay Staley (501) 906-7842 Media Contact: Michelle Rossow (501) 906-3922 
