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Bank OZK Announces Record Third Quarter 2024 Earnings
ソース: Nasdaq GlobeNewswire / 17 10 2024 16:01:22 America/New_York
LITTLE ROCK, Ark., Oct. 17, 2024 (GLOBE NEWSWIRE) -- Bank OZK (the “Bank”) (Nasdaq: OZK) today announced that net income available to common stockholders for the third quarter of 2024 was $177.1 million, its eighth consecutive quarterly record and a 4.4% increase from $169.7 million for the third quarter of 2023. For the first nine months of 2024, net income available to common stockholders was $522.1 million, a 3.7% increase from $503.5 million for the first nine months of 2023.
Diluted earnings per common share for the third quarter of 2024 were $1.55, its eighth consecutive quarterly record and a 4.0% increase from $1.49 for the third quarter of 2023. For the first nine months of 2024, diluted earnings per common share were $4.58, a 4.8% increase from $4.37 for the first nine months of 2023.
Pre-tax pre-provision net revenue (“PPNR”) was a record $282.6 million for the third quarter of 2024, a 7.0% increase from $264.0 million for the third quarter of 2023. For the first nine months of 2024, PPNR was $834.6 million, an 8.4% increase from $769.9 million for the first nine months 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 $46.4 million for the third quarter of 2024 compared to $44.0 million for the third quarter of 2023, while our net charge-offs were only $26.0 million and $9.4 million, respectively, for those quarters. For the first nine months of 2024, provision for credit losses was $138.4 million compared to $121.6 million for the first nine months of 2023, while our net charge-offs were only $45.1 million and $25.4 million, respectively, for those nine month periods. The Bank’s total allowance for credit losses (“ACL”) was $594.5 million at September 30, 2024, an increase of $133.1 million or 28.8% compared to $461.5 million at September 30, 2023.
The Bank’s annualized returns on average assets, average common stockholders’ equity and average tangible common stockholders’ equity for the third quarter of 2024 were 1.90%, 13.65% and 15.65%, respectively, compared to 2.13%, 14.81% and 17.33%, respectively, for the third quarter of 2023. For the first nine months of 2024, the Bank’s annualized returns on average assets, average common stockholders’ equity and average tangible common stockholders’ equity were 1.93%, 13.92%, and 16.04%, respectively, compared to 2.26%, 15.06%, and 17.68%, respectively, for the first nine months 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 with our results for the quarter just ended giving us our eighth consecutive quarter of record net income and earnings per share and ninth consecutive quarter of record net interest income. This consistent achievement of record results has allowed us to consistently increase dividends, significantly grow capital and opportunistically repurchase shares, all while significantly increasing our allowance for credit losses.”
KEY BALANCE SHEET METRICS
Loans were $29.22 billion at September 30, 2024, a 15.3% increase from $25.33 billion at September 30, 2023. Deposits were $30.57 billion at September 30, 2024, a 19.6% increase from $25.55 billion at September 30, 2023. Total assets were $37.44 billion at September 30, 2024, a 14.3% increase from $32.77 billion at September 30, 2023.
Common stockholders’ equity was $5.25 billion at September 30, 2024, a 15.1% increase from $4.56 billion at September 30, 2023. Tangible common stockholders’ equity was $4.59 billion at September 30, 2024, a 17.7% increase from $3.90 billion at September 30, 2023.
Book value per common share was $46.31 at September 30, 2024, a $5.96 increase from $40.35 at September 30, 2023. Tangible book value per common share was $40.49 at September 30, 2024, a $5.99 increase from $34.50 at September 30, 2023.
The Bank’s strong earnings and earning retention rate, among other factors, have contributed to our robust capital ratios. The Bank’s ratio of total common stockholders’ equity to total assets was 14.03% at September 30, 2024, compared to 13.93% at September 30, 2023. The Bank’s ratio of total tangible common stockholders’ equity to total tangible assets was 12.49% at September 30, 2024, compared to 12.16% at September 30, 2023. The calculations of the Bank’s total common stockholders’ equity, tangible common stockholders’ equity, ratio of total tangible common stockholders’ equity to total tangible assets and tangible book value per common share, and the reconciliations to GAAP, are included in the schedules accompanying this release.
ASSET QUALITY
The Bank’s ratio of nonperforming loans to total loans was 0.60% at September 30, 2024, compared to 0.30% at June 30, 2024 and 0.27% as of September 30, 2023. The Bank’s ratio of nonperforming assets to total assets was 0.68% at September 30, 2024, compared to 0.42% at June 30, 2024 and September 30, 2023. The Bank's annualized ratio of net charge-offs to average total loans was 0.36% for the quarter and 0.21% for the first nine months of 2024, compared to 0.15% for both the third quarter and first nine months of 2023.
MANAGEMENT’S COMMENTS, CONFERENCE CALL, TRANSCRIPT AND FILINGS
In connection with this release, the Bank released management’s comments on its quarterly results, which are available at http://ir.ozk.com. This release should be read in conjunction with management’s comments on the quarterly results.
Management will conduct a conference call to take questions at 10:00 a.m. CT (11:00 a.m. ET) on Friday, October 18, 2024. Interested parties may access the conference call live via webcast on the Bank’s investor relations website at https://ir.ozk.com/news/event-calendar, or may participate via telephone by registering using this online form. Upon registration, all telephone participants will receive the dial-in number along with a unique PIN number that can be used to access the call. A replay of the conference call webcast will be archived on the Bank’s website for at least 30 days.
The Bank files annual, quarterly and current reports, proxy materials, and other information required by the Securities Exchange Act of 1934 with the Federal Deposit Insurance Corporation (“FDIC”), copies of which are available electronically at the FDIC’s website at https://efr.fdic.gov/fcxweb/efr/index.html and are also available on the Bank’s investor relations website at ir.ozk.com. To receive automated email alerts for these materials please visit https://ir.ozk.com/other/email-alerts to sign up.
NON-GAAP FINANCIAL MEASURES
This release contains certain non-GAAP financial measures. The Bank uses these non-GAAP financial measures, specifically return on average common stockholders’ equity, return on average tangible common stockholders’ equity, tangible book value per common share, total common stockholders’ equity, total tangible common stockholders’ equity, the ratio of total tangible common stockholders’ equity to total tangible assets, and PPNR, to assess the strength of its capital, its ability to generate earnings on tangible capital invested by its shareholders and trends in its net revenue. These measures typically adjust GAAP financial measures to exclude intangible assets or provision for credit losses. Management believes presentation of these non-GAAP financial measures provides useful supplemental information which contributes to a proper understanding of the financial results and capital levels of the Bank. These non-GAAP disclosures should not be viewed as a substitute for financial results determined in accordance with GAAP, and they are not necessarily comparable to non-GAAP performance measures that may be presented by other banks. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are included in the tables at the end of this release under the caption “Reconciliation of Non-GAAP Financial Measures.”
FORWARD-LOOKING STATEMENTS
This press release and other communications by the Bank include certain “forward-looking statements” regarding the Bank’s plans, expectations, thoughts, beliefs, estimates, goals and outlook for the future that are intended to be covered by the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on management’s expectations as well as certain assumptions and estimates made by, and information available to, management at the time. Those statements are not guarantees of future results or performance and are subject to certain known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those expressed in, or implied by, such forward-looking statements. These risks, uncertainties and other factors include, but are not limited to: potential delays or other problems in implementing the Bank’s growth, expansion and acquisition strategies, including obtaining regulatory or other approvals, delays in acquiring satisfactory sites, obtaining permits and designing, constructing and opening new offices, relocating, selling or closing existing offices, or integrating any acquisitions; the availability of and access to capital; possible downgrades in the Bank’s credit ratings or outlook which could increase the costs of or decrease the availability of funding from capital markets; the ability to attract new or retain existing deposits or to retain or grow loans, including growth from unfunded closed loans; the ability to generate future revenue growth or to control future growth in non-interest expense; interest rate fluctuations, including changes in the yield curve between short-term and long-term interest rates or changes in the relative relationships of various interest rate indices; competitive factors and pricing pressures, including their effect on the Bank’s net interest margin or core spread; general economic, unemployment, credit market and real estate market conditions, and the effect of such conditions on the creditworthiness of borrowers, collateral values, the value of investment securities and asset recovery values; conditions within the banking industry; recently enacted and potential new laws and regulatory requirements or changes to existing laws and regulatory requirements, including changes affecting oversight of the financial services industry, changes intended to manage or mitigate climate and related environmental risks or changes in the interpretation and enforcement of such laws and requirements, changes as a result of the U.S. presidential and congressional elections, and the costs and expenses to comply with new and/or existing legislation and regulatory requirements; uncertainty regarding changes in U.S. government monetary and fiscal policy; the impact of any U.S. federal government shutdown or budgetary crisis; FDIC special assessments or changes to regular assessments; the ability to keep pace with technological changes, including changes regarding artificial intelligence and maintaining cybersecurity; the impact of any failure in, or breach of, our operational or security systems or infrastructure, or those of third parties with whom we do business or others, including as a result of cyberattacks or an increase in the incidence or severity of fraud, illegal payments, security breaches or other illegal acts impacting the Bank, its customers or others; natural disasters; acts of war or terrorism; the potential impact of continuing inflationary pressures; the potential impact of supply chain disruptions; national or international political instability or military conflict, including the conflict in the Middle East and the ongoing war in Ukraine; competition for and costs of recruiting and retaining qualified personnel; impairment of our goodwill; adoption of new accounting standards, or changes in existing standards; and adverse results (including costs, fines, reputational harm and/or other negative effects) from current or future litigation, regulatory examinations or other legal and/or regulatory actions or rulings as well as other factors identified in this communication or as detailed from time to time in our public filings, including those factors described in the disclosures under the headings “Forward-Looking Information” and “Item 1A. Risk Factors” in our most recent Annual Report on Form 10-K for the year ended December 31, 2023 and our quarterly reports on Form 10-Q. Should one or more of the foregoing risks materialize, or should underlying assumptions prove incorrect, actual results or outcomes may vary materially from those described in, or implied by, such forward-looking statements. The Bank disclaims any obligation to update or revise any forward-looking statements based on the occurrence of future events, the receipt of new information or otherwise.
GENERAL INFORMATION
Bank OZK (Nasdaq: OZK) is a regional bank providing innovative financial solutions delivered by expert bankers with a relentless pursuit of excellence. Established in 1903, Bank OZK conducts banking operations in approximately 240 offices in nine states including Arkansas, Georgia, Florida, North Carolina, Tennessee, Texas, New York, California and Mississippi and had $37.44 billion in total assets as of September 30, 2024. For more information, visit www.ozk.com.
Bank OZK
Consolidated Balance Sheets
UnauditedSeptember 30, 2024 December 31, 2023 (Dollars in thousands) ASSETS Cash and cash equivalents $ 2,678,726 $ 2,149,529 Investment securities – available for sale (“AFS”) 2,952,022 3,244,371 Federal Home Loan Bank of Dallas (“FHLB”) and other bankers’ bank stocks 13,808 50,400 Loans 29,218,144 26,459,075 Allowance for loan losses (420,058 ) (339,394 ) Net Loans 28,798,086 26,119,681 Premises and equipment, net 712,787 676,821 Foreclosed assets 77,949 61,720 Accrued interest receivable 173,246 170,110 Bank owned life insurance (“BOLI”) 823,598 808,490 Goodwill 660,789 660,789 Other, net 550,793 295,546 Total assets $ 37,441,804 $ 34,237,457 LIABILITIES AND STOCKHOLDERS’ EQUITY Deposits: Demand non-interest bearing $ 3,855,214 $ 4,095,874 Savings and interest bearing transaction 9,303,466 9,074,296 Time 17,412,933 14,234,973 Total deposits 30,571,613 27,405,143 Other borrowings 151,035 805,318 Subordinated notes 348,370 347,761 Subordinated debentures 121,652 121,652 Reserve for losses on unfunded credit commitments 174,479 161,834 Accrued interest payable and other liabilities 481,100 255,773 Total liabilities 31,848,249 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 September 30, 2024 and December 31, 2023 338,980 338,980 Common stock: $0.01 par value; 300,000,000 shares authorized; 113,449,886 and 113,148,672 shares issued and outstanding at September 30, 2024 and December 31, 2023, respectively 1,135 1,131 Additional paid-in capital 1,619,832 1,612,446 Retained earnings 3,684,869 3,283,818 Accumulated other comprehensive loss (51,957 ) (97,374 ) Total stockholders’ equity before noncontrolling interest 5,592,859 5,139,001 Noncontrolling interest 696 975 Total stockholders’ equity 5,593,555 5,139,976 Total liabilities and stockholders’ equity $ 37,441,804 $ 34,237,457 Bank OZK
Consolidated Statements of Income
UnauditedThree Months Ended
September 30,Nine Months Ended
September 30,2024 2023 2024 2023 (Dollars in thousands, except per share amounts) Interest income: Loans $ 629,934 $ 529,031 $ 1,843,167 $ 1,428,291 Investment securities: Taxable 7,874 9,887 26,000 29,761 Tax-exempt 11,555 9,534 33,876 28,288 Deposits with banks 32,689 17,061 83,899 36,338 Total interest income 682,052 565,513 1,986,942 1,522,678 Interest expense: Deposits 286,608 178,823 811,735 408,577 Other borrowings 953 14,326 5,668 30,339 Subordinated notes 2,631 2,631 7,808 7,808 Subordinated debentures 2,462 2,472 7,405 7,017 Total interest expense 292,654 198,252 832,616 453,741 Net interest income 389,398 367,261 1,154,326 1,068,937 Provision for credit losses 46,443 44,036 138,378 121,638 Net interest income after provision for credit losses 342,955 323,225 1,015,948 947,299 Non-interest income: Service charges on deposit accounts: NSF fees — 1,102 — 3,097 Overdraft fees 3,563 3,606 10,354 10,262 All other service charges 7,561 6,973 21,958 20,662 Trust income 2,529 2,213 6,935 6,358 BOLI income: Increase in cash surrender value 5,758 5,252 16,870 15,295 Death benefits 1,344 — 1,344 — Loan service, maintenance and other fees 6,534 3,995 19,358 12,165 Gains on sales of other assets 1,303 364 2,835 5,740 Net gains (losses) on investment securities 25 (270 ) 560 2,066 Other 4,988 2,492 11,257 9,877 Total non-interest income 33,605 25,727 91,471 85,522 Non-interest expense: Salaries and employee benefits 75,324 64,107 218,297 192,576 Net occupancy and equipment 17,380 17,797 53,775 55,357 Other operating expenses 47,697 47,074 139,092 136,616 Total non-interest expense 140,401 128,978 411,164 384,549 Income before taxes 236,159 219,974 696,255 648,272 Provision for income taxes 54,953 46,144 161,958 132,564 Net income 181,206 173,830 534,297 515,708 Earnings attributable to noncontrolling interest (12 ) (37 ) (22 ) (50 ) Preferred stock dividends 4,047 4,047 12,141 12,141 Net income available to common stockholders $ 177,147 $ 169,746 $ 522,134 $ 503,517 Basic earnings per common share $ 1.56 $ 1.50 $ 4.60 $ 4.39 Diluted earnings per common share $ 1.55 $ 1.49 $ 4.58 $ 4.37 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 September 30, 2024: Balances – June 30, 2024 $ 338,980 $ 1,135 $ 1,615,101 $ 3,553,523 $ (100,939 ) $ 985 $ 5,408,785 Net income — — — 181,206 — — 181,206 Earnings attributable to noncontrolling interest — — — (12 ) — 12 — Total other comprehensive income — — — — 48,982 — 48,982 Preferred stock dividends, $0.28906 per share — — — (4,047 ) — — (4,047 ) Common stock dividends, $0.40 per share — — — (45,801 ) — — (45,801 ) Return of capital paid to noncontrolling interest — — — — — (301 ) (301 ) Issuance of 3,197 shares of common stock pursuant to stock-based compensation plans — — 28 — — — 28 Repurchase and cancellation of 11,903 shares of common stock under share repurchase program — — (462 ) — — — (462 ) Stock-based compensation expense — — 5,165 — — — 5,165 Forfeitures of 6,646 shares of unvested restricted common stock — — — — — — — Balances – September 30, 2024 $ 338,980 $ 1,135 $ 1,619,832 $ 3,684,869 $ (51,957 ) $ 696 $ 5,593,555 Nine months ended September 30, 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 — — — 534,297 — — 534,297 Earnings attributable to noncontrolling interest — — — (22 ) — 22 — Total other comprehensive income — — — — 45,417 — 45,417 Preferred stock dividends, $0.86718 per share — — — (12,141 ) — — (12,141 ) Common stock dividends, $1.17 per share — — — (133,773 ) — — (133,773 ) Return of capital paid to noncontrolling interest — — — — — (301 ) (301 ) Issuance of 521,651 shares of common stock pursuant to stock-based compensation plans — 6 439 — — — 445 Repurchase and cancellation of 11,903 shares of common stock under share repurchase program — — (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 — — 15,417 — — — 15,417 Forfeitures of 24,119 shares of unvested restricted common stock — — — — — — — Balances – September 30, 2024 $ 338,980 $ 1,135 $ 1,619,832 $ 3,684,869 $ (51,957 ) $ 696 $ 5,593,555 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 September 30, 2023: Balances – June 30, 2023 $ 338,980 $ 1,131 $ 1,602,964 $ 3,026,247 $ (159,431 ) $ 1,372 $ 4,811,263 Net income — — — 173,830 — — 173,830 Earnings attributable to noncontrolling interest — — — (37 ) — 37 — Total other comprehensive loss — — — — (39,555 ) — (39,555 ) Preferred stock dividends, $0.28906 per share — — — (4,047 ) — (4,047 ) Common stock dividends, $0.36 per share — — — (41,124 ) — — (41,124 ) Issuance of 2,446 shares of common stock pursuant to stock-based compensation plans — — 77 — — — 77 Stock-based compensation expense — — 4,469 — — — 4,469 Forfeitures of 11,663 shares of unvested restricted common stock — — — — — — — Balances – September 30, 2023 $ 338,980 $ 1,131 $ 1,607,510 $ 3,154,869 $ (198,986 ) $ 1,409 $ 4,904,913 Nine months ended September 30, 2023: Balances – December 31, 2022 $ 338,980 $ 1,172 $ 1,753,941 $ 2,773,135 $ (177,649 ) $ 1,359 $ 4,690,938 Net income — — — 515,708 — — 515,708 Earnings attributable to noncontrolling interest — — — (50 ) — 50 — Total other comprehensive loss — — — — (21,337 ) — (21,337 ) Preferred stock dividends, $0.86718 per share — — — (12,141 ) — (12,141 ) Common stock dividends, $1.05 per share — — — (121,783 ) — — (121,783 ) Issuance of 505,633 shares of common stock pursuant to stock-based compensation plans — 5 618 — — — 623 Repurchase and cancellation of 4,304,239 shares of common stock under share repurchase program, including excise tax — (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 — — 13,044 — — — 13,044 Forfeitures of 26,728 shares of unvested restricted common stock — — — — — — — Balances – September 30, 2023 $ 338,980 $ 1,131 $ 1,607,510 $ 3,154,869 $ (198,986 ) $ 1,409 $ 4,904,913 Bank OZK
Summary of Non-Interest Expense
UnauditedThree Months Ended
September 30,Nine Months Ended
September 30,2024 2023 2024 2023 (Dollars in thousands) Salaries and employee benefits $ 75,324 $ 64,107 $ 218,297 $ 192,576 Net occupancy and equipment 17,380 17,797 53,775 55,357 Other operating expenses: Software and data processing 12,742 9,584 36,016 28,634 Deposit insurance and assessments 6,050 5,500 19,609 14,548 Professional and outside services 5,620 4,640 18,272 15,190 Advertising and public relations 6,089 3,779 16,874 10,998 Amortization of CRA and tax credit investments(1) — 8,171 — 20,151 Other 17,196 15,400 48,321 47,095 Total non-interest expense $ 140,401 $ 128,978 $ 411,164 $ 384,549 (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
UnauditedSeptember 30, 2024 December 31, 2023 (Dollars in thousands) Real estate: Residential 1-4 family $ 1,075,912 3.7 % $ 961,338 3.6 % Non-farm/non-residential 7,924,453 27.1 5,309,239 20.1 Construction/land development 9,827,974 33.6 11,653,487 44.0 Agricultural 274,703 0.9 256,423 1.0 Multifamily residential 3,058,056 10.5 2,064,106 7.8 Total real estate 22,161,098 75.8 20,244,593 76.5 Commercial and industrial 1,632,110 5.6 1,269,610 4.8 Consumer 3,565,400 12.2 2,965,042 11.2 Other 1,859,536 6.4 1,979,830 7.5 Total loans 29,218,144 100.0 % 26,459,075 100.0 % Allowance for loan losses (420,058 ) (339,394 ) Net loans $ 28,798,086 $ 26,119,681 Bank OZK
Allowance for Credit Losses
UnauditedAllowance for Loan Losses Reserve for Losses on Unfunded Credit Commitments Total Allowance for Credit Losses (Dollars in thousands) Three months ended September 30, 2024: Balances – June 30, 2024 $ 407,079 $ 167,022 $ 574,101 Net charge-offs (26,007 ) — (26,007 ) Provision for credit losses 38,986 7,457 46,443 Balances – September 30, 2024 $ 420,058 $ 174,479 $ 594,537 Nine months ended September 30, 2024: Balances – December 31, 2023 $ 339,394 $ 161,834 $ 501,228 Net charge-offs (45,069 ) — (45,069 ) Provision for credit losses 125,733 12,645 138,378 Balances – September 30, 2024 $ 420,058 $ 174,479 $ 594,537 Three months ended September 30, 2023: Balances – June 30, 2023 $ 263,188 $ 163,632 $ 426,820 Net charge-offs (9,370 ) — (9,370 ) Provision for credit losses 49,540 (5,504 ) 44,036 Balances – September 30, 2023 $ 303,358 $ 158,128 $ 461,486 Nine months ended September 30, 2023: Balances – December 31, 2022 $ 208,858 $ 156,419 $ 365,277 Net charge-offs (25,429 ) — (25,429 ) Provision for credit losses 119,929 1,709 121,638 Balances – September 30, 2023 $ 303,358 $ 158,128 $ 461,486 Bank OZK
Deposits – By Customer Type
UnauditedSeptember 30, 2024 December 31, 2023 (Dollars in thousands) Non-interest bearing $ 3,855,214 12.6 % $ 4,095,874 14.9 % Interest bearing: Consumer and commercial: Consumer – non-time 2,854,094 9.3 2,792,199 10.2 Consumer – time 13,133,060 43.0 10,216,217 37.3 Commercial – non-time 2,819,146 9.2 2,439,175 8.9 Commercial – time 971,632 3.2 767,566 2.8 Public funds 3,628,461 11.9 3,725,766 13.6 Brokered 2,716,206 8.9 2,655,317 9.7 Reciprocal 593,800 1.9 713,029 2.6 Total deposits $ 30,571,613 100.0 % $ 27,405,143 100.0 % Bank OZK
Selected Consolidated Financial Data
UnauditedThree Months Ended
September 30,Nine Months Ended
September 30,2024 2023 %
Change2024 2023 %
Change(Dollars in thousands, except per share amounts) Income statement data: Net interest income $ 389,398 $ 367,261 6.0 % $ 1,154,326 $ 1,068,937 8.0 % Provision for credit losses 46,443 44,036 5.5 138,378 121,638 13.8 Non-interest income 33,605 25,727 30.6 91,471 85,522 7.0 Non-interest expense 140,401 128,978 8.9 411,164 384,549 6.9 Net income 181,206 173,830 4.2 534,297 515,708 3.6 Preferred stock dividends 4,047 4,047 — 12,141 12,141 — Net income available to common stockholders 177,147 169,746 4.4 522,134 503,517 3.7 Pre-tax pre-provision net revenue(1) 282,602 264,010 7.0 834,633 769,910 8.4 Common share and per common share data: Diluted earnings per common share $ 1.55 $ 1.49 4.0 % $ 4.58 $ 4.37 4.8 % Basic earnings per common share 1.56 1.50 4.0 4.60 4.39 4.8 Common stock dividends per share 0.40 0.36 11.1 1.17 1.05 11.4 Book value per share 46.31 40.35 14.8 46.31 40.35 14.8 Tangible book value per common share(1) 40.49 34.50 17.4 40.49 34.50 17.4 Weighted-average diluted shares outstanding (thousands) 114,031 113,770 0.2 113,988 115,226 (1.1 ) End of period shares outstanding (thousands) 113,450 113,136 0.3 113,450 113,136 0.3 Balance sheet data at period end: Total assets $ 37,441,804 $ 32,767,328 14.3 % $ 37,441,804 $ 32,767,328 14.3 % Loans 29,218,144 25,331,740 15.3 29,218,144 25,331,740 15.3 Allowance for loan losses 420,058 303,358 38.5 420,058 303,358 38.5 Foreclosed assets 77,949 68,738 13.4 77,949 68,738 13.4 Investment securities – AFS 2,952,022 3,153,817 (6.4 ) 2,952,022 3,153,817 (6.4 ) Deposits 30,571,613 25,552,856 19.6 30,571,613 25,552,856 19.6 Other borrowings 151,035 1,430,192 (89.4 ) 151,035 1,430,192 (89.4 ) Unfunded credit commitments 19,307,972 20,625,371 (6.4 ) 19,307,972 20,625,371 (6.4 ) Reserve for losses on unfunded credit commitments 174,479 158,128 10.3 174,479 158,128 10.3 Preferred stock 338,980 338,980 — 338,980 338,980 — Total common stockholders’ equity(1) 5,253,879 4,564,524 15.1 5,253,879 4,564,524 15.1 Total tangible common stockholders' equity(1) 4,593,090 3,903,735 17.7 4,593,090 3,903,735 17.7 Net unrealized losses on investment securities AFS included in stockholders’ equity (51,957 ) (198,986 ) (51,957 ) (198,986 ) Loan to deposit ratio 95.57 % 99.13 % 95.57 % 99.13 % Selected ratios: Return on average assets(2) 1.90 % 2.13 % 1.93 % 2.26 % Return on average common stockholders’ equity(1)(2) 13.65 14.81 13.92 15.06 Return on average tangible common stockholders’ equity(1)(2) 15.65 17.33 16.04 17.68 Total tangible common stockholders' equity to total tangible assets(1) 12.49 12.16 12.49 12.16 Net interest margin – FTE(2) 4.55 5.05 4.64 5.29 Efficiency ratio 32.95 32.60 32.76 33.09 Net charge-offs to average total loans(2) 0.36 0.15 0.21 0.15 Nonperforming loans to total loans 0.60 0.27 0.60 0.27 Nonperforming assets to total assets 0.68 0.42 0.68 0.42 Allowance for loan losses to total loans 1.44 1.20 1.44 1.20 Allowance for credit losses to total loans and unfunded credit commitments 1.23 1.00 1.23 1.00 Other information: Non-accrual loans $ 175,665 $ 68,233 $ 175,665 $ 68,233 (1) See accompanying schedules for reconciliation of non-GAAP financial measures.
(2) Ratios for interim periods annualized based on actual days.Bank OZK
Selected Consolidated Financial Data (continued)
UnauditedThree Months Ended September 30, 2024 June 30, 2024 %
Change(Dollars in thousands, except per share amounts) Income statement data: Net interest income $ 389,398 $ 387,994 0.4 % Provision for credit losses 46,443 49,012 (5.2 ) Non-interest income 33,605 28,782 16.8 Non-interest expense 140,401 137,451 2.1 Net income 181,206 177,535 2.1 Preferred stock dividends 4,047 4,047 — Net income available to common stockholders 177,147 173,496 2.1 Pre-tax pre-provision net revenue(1) 282,602 279,325 1.2 Common share and per common share data: Diluted earnings per common share $ 1.55 $ 1.52 2.0 % Basic earnings per common share 1.56 1.53 2.0 Common stock dividends per share 0.40 0.39 2.6 Book value per share 46.31 44.67 3.7 Tangible book value per common share(1) 40.49 38.85 4.2 Weighted-average diluted shares outstanding (thousands) 114,031 113,995 — End of period shares outstanding (thousands) 113,450 113,465 — Balance sheet data at period end: Total assets $ 37,441,804 $ 36,836,173 1.6 % Loans 29,218,144 28,673,685 1.9 Allowance for loan losses 420,058 407,079 3.2 Foreclosed assets 77,949 71,023 9.8 Investment securities – AFS 2,952,022 2,981,929 (1.0 ) Deposits 30,571,613 29,943,663 2.1 Other borrowings 151,035 400,943 (62.3 ) Unfunded credit commitments 19,307,972 19,737,557 (2.2 ) Reserve for losses on unfunded credit commitments 174,479 167,022 4.5 Total common stockholders’ equity(1) 5,253,879 5,068,820 3.7 Total tangible common stockholders' equity(1) 4,593,090 4,408,031 4.2 Net unrealized losses on investment securities AFS included in stockholders’ equity (51,957 ) (100,939 ) Loan to deposit ratio 95.57 % 95.76 % Selected ratios: Return on average assets(2) 1.90 % 1.92 % Return on average common stockholders’ equity(1)(2) 13.65 13.98 Return on average tangible common stockholders’ equity(1)(2) 15.65 16.11 Total tangible common stockholders' equity to total tangible assets(1) 12.49 12.19 Net interest margin – FTE(2) 4.55 4.68 Efficiency ratio 32.95 32.74 Net charge-offs to average total loans(2) 0.36 0.17 Nonperforming loans to total loans 0.60 0.30 Nonperforming assets to total assets 0.68 0.42 Allowance for loan losses to total loans 1.44 1.42 Allowance for credit losses to total loans and unfunded credit commitments 1.23 1.19 Other information: Non-accrual loans $ 175,665 $ 85,265 (1) See accompanying schedules for reconciliation of non-GAAP financial measures.
(2) Ratios for interim periods annualized based on actual days.Bank OZK
Supplemental Quarterly Financial Data
Unaudited9/30/24 6/30/24 3/31/24 12/31/23 9/30/23 (Dollars in thousands, except per share amounts) Earnings summary: Net interest income $ 389,398 $ 387,994 $ 376,934 $ 370,548 $ 367,261 Fully taxable equivalent – FTE adjustment 3,151 3,037 3,030 2,925 2,632 Net interest income – FTE 392,549 391,031 379,964 373,473 369,893 Provision for credit losses (46,443 ) (49,012 ) (42,923 ) (43,832 ) (44,036 ) Non-interest income 33,605 28,782 29,084 37,027 25,727 Non-interest expense (140,401 ) (137,451 ) (133,314 ) (145,011 ) (128,978 ) Pre-tax income – FTE 239,310 233,350 232,811 221,657 222,606 FTE adjustment (3,151 ) (3,037 ) (3,030 ) (2,925 ) (2,632 ) Provision for income taxes (54,953 ) (52,778 ) (54,226 ) (43,600 ) (46,144 ) Noncontrolling interest (12 ) 8 (18 ) (6 ) (37 ) Preferred stock dividend (4,047 ) (4,047 ) (4,047 ) (4,047 ) (4,047 ) Net income available to common stockholders $ 177,147 $ 173,496 $ 171,490 $ 171,079 $ 169,746 Earnings per common share – diluted $ 1.55 $ 1.52 $ 1.51 $ 1.50 $ 1.49 Pre-tax pre-provision net revenue(1) $ 282,602 $ 279,325 $ 272,704 $ 262,564 $ 264,010 Selected balance sheet data at period end: Total assets $ 37,441,804 $ 36,836,173 $ 36,029,904 $ 34,237,457 $ 32,767,328 Loans 29,218,144 28,673,685 28,031,348 26,459,075 25,331,740 Investment securities – AFS 2,952,022 2,981,929 3,072,391 3,244,371 3,153,817 Deposits 30,571,613 29,943,663 29,406,070 27,405,143 25,552,856 Unfunded credit commitments 19,307,972 19,737,557 20,458,796 20,561,029 20,625,371 Allowance for credit losses: Balance at beginning of period $ 574,101 $ 536,887 $ 501,228 $ 461,486 $ 426,820 Net charge-offs (26,007 ) (11,798 ) (7,264 ) (4,090 ) (9,370 ) Provision for credit losses 46,443 49,012 42,923 43,832 44,036 Balance at end of period $ 594,537 $ 574,101 $ 536,887 $ 501,228 $ 461,486 Allowance for loan losses $ 420,058 $ 407,079 $ 365,935 $ 339,394 $ 303,358 Reserve for losses on unfunded credit commitments 174,479 167,022 170,952 161,834 158,128 Total allowance for credit losses $ 594,537 $ 574,101 $ 536,887 $ 501,228 $ 461,486 Selected ratios: Net interest margin – FTE(2) 4.55 % 4.68 % 4.71 % 4.82 % 5.05 % Efficiency ratio 32.95 32.74 32.59 35.33 32.60 Net charge-offs to average total loans 0.36 0.17 0.11 0.06 0.15 Nonperforming loans to total loans 0.60 0.30 0.22 0.25 0.27 Nonperforming assets to total assets 0.68 0.42 0.34 0.38 0.42 Allowance for loan losses to total loans 1.44 1.42 1.31 1.28 1.20 Allowance for credit losses to total loans and unfunded credit commitments 1.23 1.19 1.11 1.07 1.00 Loans past due 30 days or more, including past due non-accrual loans, to total loans 0.14 0.17 0.18 0.21 0.22 (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 September 30, Nine Months Ended September 30, 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 $ 2,411,007 $ 32,689 5.39 % $ 1,312,533 $ 17,061 5.16 % $ 2,096,483 $ 83,899 5.35 % $ 1,005,263 $ 36,338 4.83 % Investment securities: Taxable 1,779,675 7,874 1.76 2,243,378 9,887 1.75 1,902,826 26,000 1.83 2,351,707 29,761 1.69 Tax-exempt – FTE 1,204,528 14,627 4.83 1,031,685 12,068 4.64 1,173,413 42,882 4.88 1,033,430 35,807 4.63 Total loans - FTE 28,957,386 630,013 8.66 24,461,488 529,129 8.58 28,294,238 1,843,379 8.70 22,811,326 1,428,609 8.37 Total earning assets – FTE 34,352,596 685,203 7.94 29,049,084 568,145 7.76 33,466,960 1,996,160 7.97 27,201,726 1,530,515 7.52 Non-interest earning assets 2,713,462 2,557,808 2,738,394 2,554,214 Total assets $ 37,066,058 $ 31,606,892 $ 36,205,354 $ 29,755,940 LIABILITIES AND STOCKHOLDERS’ EQUITY Interest bearing liabilities: Deposits: Savings and interest bearing transaction $ 9,156,941 $ 68,903 2.99 % $ 8,806,690 $ 56,169 2.53 % $ 9,205,428 $ 204,398 2.97 % $ 9,201,712 $ 147,334 2.14 % Time deposits 17,286,964 217,705 5.01 11,606,189 122,654 4.19 16,386,188 607,337 4.95 9,621,410 261,243 3.63 Total interest bearing deposits 26,443,905 286,608 4.31 20,412,879 178,823 3.48 25,591,616 811,735 4.24 18,823,122 408,577 2.90 Other borrowings(1) 120,203 953 3.15 1,048,566 14,326 5.42 175,386 5,668 4.32 783,566 30,339 5.20 Subordinated notes 348,270 2,631 3.01 347,456 2,631 3.00 348,067 7,808 3.00 347,254 7,808 3.01 Subordinated debentures 121,652 2,462 8.05 121,652 2,472 8.06 121,652 7,405 8.13 121,647 7,017 7.71 Total interest bearing liabilities 27,034,030 292,654 4.31 21,930,553 198,252 3.59 26,236,721 832,616 4.24 20,075,589 453,741 3.02 Non-interest bearing liabilities: Non-interest bearing deposits 3,866,808 4,294,191 3,953,241 4,370,763 Other non-interest bearing liabilities 661,754 495,147 665,882 499,163 Total liabilities 31,562,592 26,719,891 30,855,844 24,945,515 Total stockholders’ equity before noncontrolling interest 5,502,526 4,885,620 5,348,540 4,809,053 Noncontrolling interest 940 1,381 970 1,372 Total liabilities and stockholders’ equity $ 37,066,058 $ 31,606,892 $ 36,205,354 $ 29,755,940 Net interest income – FTE $ 392,549 $ 369,893 $ 1,163,544 $ 1,076,774 Net interest margin – FTE 4.55 % 5.05 % 4.64 % 5.29 % (1) The interest expense and the rates paid related to "other borrowings" include capitalized interest which totaled $0.7 million and $1.5 million for the third quarter and first nine months of 2024. Capitalized interest was not material
for the third quarter and first nine months of 2023. Excluding capitalized interest from the "other borrowings" expense calculation would result in a rate of 5.42% and 5.46% for the third quarter and first nine months of 2024.Bank OZK
Reconciliation of Non-GAAP Financial MeasuresCalculation of Average Common Stockholders’ Equity,
Average Tangible Common Stockholders’ Equity
and the Annualized Returns on Average Common Stockholders’ Equity and
Average Tangible Common Stockholders’ EquityUnaudited Three Months Ended Nine Months Ended Sept. 30, Sept. 30, June 30 Sept. 30, Sept. 30, 2024 2023 2024 2024 2023 (Dollars in thousands) Net income available to common stockholders $ 177,147 $ 169,746 $ 173,496 $ 522,134 $ 503,517 Average stockholders’ equity before noncontrolling interest $ 5,502,526 $ 4,885,620 $ 5,330,984 $ 5,348,540 $ 4,809,053 Less average preferred stock (338,980 ) (338,980 ) (338,980 ) (338,980 ) (338,980 ) Total average common stockholders’ equity 5,163,546 4,546,640 4,992,004 5,009,560 4,470,073 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 — — — — (1,098 ) Total average intangibles (660,789 ) (660,789 ) (660,789 ) (660,789 ) (661,887 ) Average tangible common stockholders’ equity $ 4,502,757 $ 3,885,851 $ 4,331,215 $ 4,348,771 $ 3,808,186 Return on average common stockholders’ equity(1) 13.65 % 14.81 % 13.98 % 13.92 % 15.06 % Return on average tangible common stockholders’ equity(1) 15.65 % 17.33 % 16.11 % 16.04 % 17.68 % (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
UnauditedSeptember 30, June 30, 2024 2023 2024 (In thousands, except per share amounts) Total stockholders’ equity before noncontrolling interest $ 5,592,859 $ 4,903,504 $ 5,407,800 Less preferred stock (338,980 ) (338,980 ) (338,980 ) Total common stockholders’ equity $ 5,253,879 $ 4,564,524 $ 5,068,820 Less goodwill (660,789 ) (660,789 ) (660,789 ) Total tangible common stockholders’ equity $ 4,593,090 $ 3,903,735 $ 4,408,031 Shares of common stock outstanding 113,450 113,136 113,465 Book value per common share $ 46.31 $ 40.35 $ 44.67 Tangible book value per common share $ 40.49 $ 34.50 $ 38.85 Calculation of Total Common Stockholders’ Equity,
Total Tangible Common Stockholders’ Equity
and the Ratio of Total Tangible Common Stockholders’ Equity
to Total Tangible Assets
UnauditedSeptember 30, June 30, 2024 2023 2024 (Dollars in thousands) Total stockholders’ equity before noncontrolling interest $ 5,592,859 $ 4,903,504 $ 5,407,800 Less preferred stock (338,980 ) (338,980 ) (338,980 ) Total common stockholders’ equity $ 5,253,879 $ 4,564,524 $ 5,068,820 Less goodwill (660,789 ) (660,789 ) (660,789 ) Total tangible common stockholders’ equity 4,593,090 3,903,735 4,408,031 Total assets $ 37,441,804 $ 32,767,328 $ 36,836,173 Less goodwill $ (660,789 ) $ (660,789 ) $ (660,789 ) Total tangible assets $ 36,781,015 $ 32,106,539 $ 36,175,384 Ratio of total common stockholders’ equity to total assets 14.03 % 13.93 % 13.76 % Ratio of total tangible common stockholders’ equity to total tangible assets 12.49 % 12.16 % 12.19 % Calculation of Pre-Tax Pre-Provision Net Revenue
UnauditedThree Months Ended Nine Months Ended Sept 30, June 30, Mar 31, Dec 31, Sept 30, September 30, 2024 2024 2024 2023 2023 2024 2023 (Dollars in thousands) Net income available to common stockholders $ 177,147 $ 173,496 $ 171,490 $ 171,079 $ 169,746 $ 522,134 $ 503,517 Preferred stock dividends 4,047 4,047 4,047 4,047 4,047 12,141 12,141 Earnings attributable to noncontrolling interest 12 (8 ) 18 6 37 22 50 Provision for income taxes 54,953 52,778 54,226 43,600 46,144 161,958 132,564 Provision for credit losses 46,443 49,012 42,923 43,832 44,036 138,378 121,638 Pre-tax pre-provision net revenue $ 282,602 $ 279,325 $ 272,704 $ 262,564 $ 264,010 $ 834,633 $ 769,910 Investor Contact: Jay Staley (501) 906-7842 Media Contact: Michelle Rossow (501) 906-3922 
