Bank OZK Announces Third Quarter 2020 Earnings

Rhea-AI Summary

Bank OZK reported a net income of $109.3 million for Q3 2020, up 5.2% from $103.9 million in Q3 2019. Diluted earnings per share (EPS) were $0.84, a 3.7% increase from the previous year. However, net income for the first nine months fell 47.3% to $171.4 million, with EPS down 47.6% to $1.32 compared to 2019. Pre-tax pre-provision net revenue for Q3 2020 was $145.7 million, a 1.0% increase year-over-year. The COVID-19 pandemic resulted in a provision for credit losses of $7.2 million for Q3 and $196.9 million for the year-to-date, raising the allowance for credit losses to $377.3 million.

Positive

• Q3 2020 net income increased by 5.2% year-over-year.
• Diluted EPS rose to $0.84, up 3.7% from the prior year.
• Total loans grew by 9.2% to $19.36 billion compared to September 2019.
• Deposits increased by 15.4% to $21.29 billion year-over-year.

Negative

• Net income for the first nine months decreased by 47.3% compared to the same period in 2019.
• EPS fell by 47.6% for the first nine months of 2020.
• Pre-tax pre-provision net revenue declined by 7.3% for the first nine months of the year.
• Provision for credit losses increased to $196.9 million for the nine months ended September 30, 2020.

LITTLE ROCK, Ark., Oct. 22, 2020 (GLOBE NEWSWIRE) -- Bank OZK (the “Bank”) (Nasdaq: OZK) today announced that net income for the third quarter of 2020 was $109.3 million, a 5.2% increase from $103.9 million for the third quarter of 2019. Diluted earnings per common share for the third quarter of 2020 were $0.84, a 3.7% increase from $0.81 for the third quarter of 2019.

For the nine months ended September 30, 2020, net income was $171.4 million, a 47.3% decrease from $325.1 million for the first nine months of 2019. Diluted earnings per common share for the first nine months of 2020 were $1.32, a 47.6% decrease from $2.52 for the first nine months of 2019.

Pre-tax pre-provision net revenue (“PPNR”) was $145.7 million for the third quarter of 2020, a 1.0% increase from $144.3 million for the third quarter of 2019. PPNR was $417.0 million for the first nine months of 2020, a 7.3% decrease from $449.6 million for the first nine months of 2019. The calculation of PPNR and the reconciliation to generally accepted accounting principles (“GAAP”) are included in the schedules accompanying this release.

The COVID-19 pandemic significantly affected the global economy in the first nine months of 2020. The sudden and severe economic downturn, combined with the implementation of the current expected credit losses (“CECL”) method to calculate the Bank’s allowance for credit losses (“ACL”) and uncertain future economic projections, resulted in the Bank incurring provision for credit losses of $7.2 million in the third quarter and $196.9 million in the first nine months of 2020, resulting in a total ACL of $377.3 million at September 30, 2020.

The Bank’s annualized returns on average assets, average common stockholders’ equity and average tangible common stockholders’ equity for the third quarter of 2020 were 1.63%, 10.48% and 12.52%, respectively, compared to 1.81%, 10.22% and 12.33%, respectively, for the third quarter of 2019. The Bank’s annualized returns on average assets, average common stockholder’s equity and average tangible common stockholders’ equity for the first nine months of 2020 were 0.90%, 5.55% and 6.65%, respectively, compared to 1.92%, 11.07%, and 13.44%, respectively, for the first nine months of 2019. The calculation of the Bank’s return on average tangible common stockholders’ equity and the reconciliation to GAAP are included in the schedules accompanying this release.

George Gleason, Chairman and Chief Executive Officer stated, “Our strong credit culture and consistent discipline are important ingredients in our long-term success, and we believe they have positioned us well for the current economic environment and beyond. This is clearly evident in our excellent asset quality and earnings for the quarter just ended.”

KEY BALANCE SHEET METRICS

Total loans were $19.36 billion at September 30, 2020, a 9.2% increase from $17.73 billion at September 30, 2019. Non-purchased loans, which exclude loans acquired in previous acquisitions, were $18.42 billion at September 30, 2020, a 13.0% increase from $16.31 billion at September 30, 2019.   Purchased loans, which consist of loans acquired in previous acquisitions, were $0.94 billion at September 30, 2020, a 34.2% decrease from $1.43 billion at September 30, 2019.

Deposits were $21.29 billion at September 30, 2020, a 15.4% increase from $18.44 billion at September 30, 2019. Total assets were $26.89 billion at September 30, 2020, a 14.9% increase from $23.40 billion at September 30, 2019.

Common stockholders’ equity was $4.19 billion at September 30, 2020, a 2.6% increase from $4.08 billion at September 30, 2019. Tangible common stockholders’ equity was $3.51 billion at September 30, 2020, a 3.5% increase from $3.39 billion at September 30, 2019. Book value per common share was $32.37 at September 30, 2020, a 2.3% increase from $31.63 at September 30, 2019. Tangible book value per common share was $27.13 at September 30, 2020, a 3.2% increase from $26.30 at September 30, 2019. The calculations of the Bank’s 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 15.57% at September 30, 2020 compared to 17.43% at September 30, 2019. Its ratio of total tangible common stockholders’ equity to total tangible assets was 13.39% at September 30, 2020 compared to 14.93% at September 30, 2019. 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.

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 October 23, 2020. 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 passcode for this playback is 4644917. 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 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 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 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 and 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, nor are they 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.”

STATEMENT REGARDING IMPACT OF COVID-19 PANDEMIC

The Bank prioritizes the health and safety of its employees and customers, and it will continue to do so throughout the duration of the pandemic. At the same time, the Bank remains focused on increasing shareholder value, managing credit exposure, managing expenses, enhancing the customer experience and supporting the communities it serves.

In management’s comments on its quarterly results (released simultaneously with this news release) and in its earnings conference call, the Bank has sought and will seek to describe the historical and future impact of the COVID-19 pandemic on the Bank’s assets, business, cash flows, financial condition, liquidity, prospects and results of operations, including the information and discussions regarding its provision and allowance for credit losses and the discussion regarding its net interest margin. Although the Bank believes that the statements that pertain to future events, results and trends and their impact on the Bank’s business are reasonable at the present time, those statements are not historical facts and are based upon current assumptions, expectations, estimates and projections, many of which, by their nature, are beyond the Bank’s control. Accordingly, all discussions regarding future events, results and trends and their impact on the Bank’s business, even in the near term, are necessarily uncertain given the fluid and evolving nature of the pandemic.

If the health, logistical or economic effects of the pandemic worsen, or if the assumptions, expectations, estimates or projections that underlie the Bank’s statements regarding future effects or trends prove to be incorrect, then the Bank’s actual assets, business, cash flows, financial condition, liquidity, prospects and results of operations may be materially and adversely impacted in ways that the Bank cannot reasonably forecast. Accordingly, when reading this news release and the accompanying prepared remarks from management on its quarterly results and when listening to the earnings conference call, undue reliance should not be placed upon any statement pertaining to future events, results and trends and their impact on the Bank’s business in future periods.

FORWARD-LOOKING STATEMENTS

This release and other communications by the Bank include certain “forward-looking statements” regarding the Bank’s plans, expectations, thoughts, beliefs, estimates, goals and outlook for the future that are intended to be covered by the Private Securities Litigation Reform Act of 1995.  Forward-looking statements are based on management’s expectations as well as certain assumptions and estimates made by, and information available to, management at the time.  Those statements are not guarantees of future results or performance and are subject to certain known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those expressed in, or implied by, such forward-looking statements.  These risks, uncertainties and other factors include, but are not limited to: potential delays or other problems implementing the Bank’s growth, expansion and acquisition strategies, including delays in identifying satisfactory sites, hiring or retaining qualified personnel, obtaining regulatory or other approvals, obtaining permits and designing, constructing and opening new offices or relocating, selling or closing existing offices; the ability to enter into and/or close additional acquisitions; the availability of and access to capital; possible downgrades in the Bank’s credit ratings or outlook which could increase the costs or 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 proposed phase-out of the London Interbank Offered Rate (“LIBOR”) or other changes involving LIBOR; competitive factors and pricing pressures, including their effect on the Bank’s net interest margin or core spread; general economic, unemployment, credit market and real estate market conditions, and the effect of such conditions on the creditworthiness of borrowers, collateral values, the value of investment securities and asset recovery values; changes in legal, financial and/or regulatory requirements; recently enacted and potential legislation and regulatory actions and the costs and expenses to comply with new and/or existing legislation and regulatory actions, including those in response to the coronavirus (COVID-19) pandemic; changes in U.S. Government monetary and fiscal policy, including any changes that result from the upcoming elections in November; 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, the Bank’s operational or security systems or infrastructure, or those of third parties with whom it does 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 magnitude and duration of the pandemic and actions taken to contain or treat COVID-19, on the Bank, the Bank’s customers, the global economy and financial markets; international or political instability; impairment of the Bank’s goodwill or other intangible assets; adoption of new accounting standards, including the effects from the adoption of the CECL methodology on January 1, 2020, 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 press release or as detailed from time to time in the other public reports the Bank files with the FDIC, including those factors described in the disclosures under the headings “Forward-Looking Information” and “Item 1A. Risk Factors” in the Bank’s most recent Annual Report on Form 10-K for the year ended December 31, 2019 and its 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 projected 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. Bank OZK was named Best Bank in the South for 2019-2020 by Money, the personal finance news and advice brand. Headquartered in Little Rock, Arkansas, Bank OZK conducts operations through more than 250 offices in Arkansas, Georgia, Florida, North Carolina, Texas, Alabama, South Carolina, 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. 

Investor Contact:		Tim Hicks (501) 978-2336
Media Contact:		Susan Blair (501) 978-2217

Bank OZK
Consolidated Balance Sheets
Unaudited

		September 30,				December 31,
		2020				2019
		(Dollars in thousands, except per share amounts)
ASSETS
Cash and cash equivalents		$	1,934,095			$	1,495,757
Investment securities ― available for sale ("AFS")			3,468,243				2,277,389
Federal Home Loan Bank of Dallas and other bankers' bank stocks			38,388				21,855
Non-purchased loans			18,419,958				16,224,539
Purchased loans			938,485				1,307,504
Allowance for loan losses			(308,847	)			(108,525	)
Net loans			19,049,596				17,423,518
Premises and equipment, net			739,066				711,541
Foreclosed assets			16,543				19,096
Accrued interest receivable			85,858				75,208
Bank owned life insurance (“BOLI”)			753,038				738,860
Goodwill and other intangible assets, net			677,251				684,542
Other, net			126,230				107,962
Total assets		$	26,888,308			$	23,555,728
LIABILITIES AND STOCKHOLDERS’ EQUITY
Deposits:
Demand non-interest bearing		$	3,908,207			$	2,795,251
Savings and interest bearing transaction			7,585,032				8,307,607
Time			9,794,166				7,371,401
Total deposits			21,287,405				18,474,259
Repurchase agreements with customers			4,994				11,249
Other borrowings			750,949				351,387
Subordinated notes			223,950				223,663
Subordinated debentures			120,335				119,916
Reserve for losses on unfunded loan commitments			68,426				—
Accrued interest payable and other liabilities			242,876				221,786
Total liabilities			22,698,935				19,402,260
Commitments and contingencies
Stockholders’ equity:
Preferred stock; $0.01 par value; 100,000,000 shares authorized; no shares issued or outstanding at September 30, 2020 or December 31, 2019			—				—
Common stock; $0.01 par value; 300,000,000 shares authorized; 129,342,073 and 128,951,024 shares issued and outstanding at September 30, 2020 and December 31, 2019, respectively			1,293				1,289
Additional paid-in capital			2,261,864				2,251,824
Retained earnings			1,862,012				1,869,983
Accumulated other comprehensive income			61,116				27,255
Total stockholders’ equity before noncontrolling interest			4,186,285				4,150,351
Noncontrolling interest			3,088				3,117
Total stockholders’ equity			4,189,373				4,153,468
Total liabilities and stockholders’ equity		$	26,888,308			$	23,555,728

Bank OZK
Consolidated Statements of Income
Unaudited

	Three Months Ended September 30,								Nine Months Ended September 30,
	2020				2019				2020				2019
	(Dollars in thousands, except per share amounts)
Interest income:
Non-purchased loans	$	236,621			$	244,954			$	701,290			$	740,900
Purchased loans		16,269				26,042				54,743				84,756
Investment securities:
Taxable		9,666				12,511				31,480				40,992
Tax-exempt		5,193				3,363				14,636				10,930
Deposits with banks and federal funds sold		532				2,647				5,237				4,001
Total interest income		268,281				289,517				807,386				881,579
Interest expense:
Deposits		38,273				66,248				141,206				196,727
Repurchase agreements with customers		4				5				17				39
Other borrowings		1,156				90				2,168				1,497
Subordinated notes		3,207				3,216				9,551				9,542
Subordinated debentures		984				1,178				3,420				4,570
Total interest expense		43,624				70,737				156,362				212,375
Net interest income		224,657				218,780				651,024				669,204
Provision for credit losses		7,200				7,854				196,889				21,303
Net interest income after provision for credit losses		217,457				210,926				454,135				647,901
Non-interest income:
Service charges on deposit accounts		9,427				10,827				27,717				30,841
Trust income		1,936				1,975				5,635				5,544
BOLI income:
Increase in cash surrender value		5,081				5,208				15,205				15,547
Death benefits		—				206				608				206
Loan service, maintenance and other fees		3,351				4,197				10,461				13,636
Other income from purchased loans		—				674				—				2,925
Gains on sales of other assets		891				189				1,674				875
Net gains on investment securities		2,244				—				4,467				713
Other		3,746				3,170				10,180				6,834
Total non-interest income		26,676				26,446				75,947				77,121
Non-interest expense:
Salaries and employee benefits		53,119				48,376				153,003				140,801
Net occupancy and equipment		16,676				14,825				47,761				44,163
Other operating expenses		35,846				37,713				109,255				111,760
Total non-interest expense		105,641				100,914				310,019				296,724
Income before taxes		138,492				136,458				220,063				428,298
Provision for income taxes		29,251				32,574				48,707				103,189
Net income		109,241				103,884				171,356				325,109
Earnings attributable to noncontrolling interest		12				7				29				(9	)
Net income available to common stockholders	$	109,253			$	103,891			$	171,385			$	325,100
Basic earnings per common share	$	0.84			$	0.81			$	1.33			$	2.52
Diluted earnings per common share	$	0.84			$	0.81			$	1.32			$	2.52

Bank OZK
Consolidated Statements of Stockholders’ Equity
Unaudited

		Common Stock				Additional Paid-In Capital				Retained Earnings				Accumulated Other Comprehensive Income (Loss)				Non- Controlling Interest				Total
		(Dollars in thousands, except per share amounts)
Three months ended September 30, 2020:
Balances – June 30, 2020		$	1,293			$	2,257,867			$	1,788,329			$	63,177			$	3,100			$	4,113,766
Net income			—				—				109,241				—				—				109,241
Earnings attributable to noncontrolling interest			—				—				12				—				(12	)			—
Total other comprehensive loss			—				—				—				(2,061	)			—				(2,061	)
Common stock dividends, $0.2725 per share			—				—				(35,570	)			—				—				(35,570	)
Stock-based compensation expense			—				3,997				—				—				—				3,997
Forfeitures of 8,228 shares of unvested restricted common stock			—				—				—				—				—				—
Balances – September 30, 2020		$	1,293			$	2,261,864			$	1,862,012			$	61,116			$	3,088			$	4,189,373
Nine months ended September 30, 2020:
Balances – December 31, 2019		$	1,289			$	2,251,824			$	1,869,983			$	27,255			$	3,117			$	4,153,468
Cumulative effect of change in accounting principle			—				—				(75,344	)			—				—				(75,344	)
Balances – January 1, 2020			1,289				2,251,824				1,794,639				27,255				3,117				4,078,124
Net income			—				—				171,356				—				—				171,356
Earnings attributable to noncontrolling interest			—				—				29				—				(29	)			—
Total other comprehensive income			—				—				—				33,861				—				33,861
Common stock dividends, $0.8025 per share			—				—				(104,012	)			—				—				(104,012	)
Issuance of 4,300 shares of common stock for exercise of stock options			—				45				—				—				—				45
Issuance of 493,761 shares of unvested restricted common stock			5				(5	)			—				—				—				—
Repurchase and cancellation of 61,873 shares of common stock			(1	)			(1,852	)			—				—				—				(1,853	)
Stock-based compensation expense			—				11,852				—				—				—				11,852
Forfeitures of 45,139 shares of unvested restricted common stock			—				—				—				—				—				—
Balances – September 30, 2020		$	1,293			$	2,261,864			$	1,862,012			$	61,116			$	3,088			$	4,189,373

Bank OZK
Consolidated Statements of Stockholders’ Equity (Continued)
Unaudited

		Common Stock				Additional Paid-In Capital				Retained Earnings				Accumulated Other Comprehensive Income (Loss)				Non- Controlling Interest				Total
		(Dollars in thousands, except per share amounts)
Three months ended September 30, 2019:
Balances – June 30, 2019		$	1,289			$	2,243,779			$	1,728,486			$	19,693			$	3,131			$	3,996,378
Net income			—				—				103,884				—				—				103,884
Earnings attributable to noncontrolling interest			—				—				7				—				(7	)			—
Total other comprehensive income			—				—				—				7,955				—				7,955
Common stock dividends, $0.24 per share			—				—				(30,963	)			—				—				(30,963	)
Issuance of 10,800 shares of common stock for exercise of stock options			—				242				—				—				—				242
Repurchase and cancellation of 974 shares of common stock			—				(28	)			—				—				—				(28	)
Stock-based compensation expense			—				3,980				—				—				—				3,980
Forfeitures of 10,183 shares of unvested restricted common stock			—				—				—				—				—				—
Balances – September 30, 2019		$	1,289			$	2,247,973			$	1,801,414			$	27,648			$	3,124			$	4,081,448
Nine months ended September 30, 2019:
Balances – December 31, 2018		$	1,286			$	2,237,948			$	1,565,201			$	(34,105	)		$	3,035			$	3,773,365
Net income			—				—				325,109				—				—				325,109
Earnings attributable to noncontrolling interest			—				—				(9	)			—				9				—
Total other comprehensive income			—				—				—				61,753				—				61,753
Common stock dividends, $0.69 per share			—				—				(88,887	)			—				—				(88,887	)
Noncontrolling interest cash contribution			—				—				—				—				80				80
Issuance of 67,350 shares of common stock for exercise of stock options			1				1,118				—				—				—				1,119
Issuance of 406,074 shares of unvested restricted common stock			4				(4	)			—				—				—				—
Repurchase and cancellation of 63,716 shares of common stock			(1	)			(1,674	)			—				—				—				(1,675	)
Stock-based compensation expense			—				10,584				—				—				—				10,584
Forfeiture of 74,398 shares of unvested restricted common stock			(1	)			1				—				—				—				—
Balances – September 30, 2019		$	1,289			$	2,247,973			$	1,801,414			$	27,648			$	3,124			$	4,081,448

Bank OZK
Summary of Non-Interest Expense
Unaudited

		Three Months Ended September 30,								Nine Months Ended September 30,
		2020				2019				2020				2019
		(Dollars in thousands)
Salaries and employee benefits		$	53,119			$	48,376			$	153,003			$	140,801
Net occupancy and equipment			16,676				14,825				47,761				44,163
Other operating expenses:
Professional and outside services			8,647				9,204				23,629				25,874
Software and data processing			5,431				5,095				15,550				14,561
Deposit insurance and assessments			3,595				2,505				11,600				9,645
Telecommunication services			2,352				2,094				6,863				8,248
Postage and supplies			1,808				2,040				5,753				6,201
Advertising and public relations			1,557				2,067				4,964				5,421
ATM expense			1,604				1,277				3,766				3,363
Travel and meals			689				2,777				3,501				8,385
Loan collection and repossession expense			1,030				317				2,581				2,218
Writedowns of foreclosed and other assets			488				354				2,087				1,509
Amortization of intangibles			1,914				2,907				7,291				9,064
Other			6,731				7,076				21,670				17,271
Total non-interest expense		$	105,641			$	100,914			$	310,019			$	296,724

Bank OZK
Summary of Total Loans Outstanding
Unaudited

		September 30, 2020								December 31, 2019
		(Dollars in thousands)
Real estate:
Residential 1-4 family		$	966,462				5.0	%		$	998,632				5.7	%
Non-farm/non-residential			4,415,477				22.8				3,956,579				22.6
Construction/land development			7,406,447				38.2				6,391,429				36.4
Agricultural			227,143				1.2				230,076				1.3
Multifamily residential			1,346,385				7.0				1,194,192				6.8
Total real estate			14,361,914				74.2				12,770,908				72.8
Commercial and industrial			944,490				4.9				661,952				3.8
Consumer			2,581,035				13.3				2,934,534				16.8
Other			1,471,004				7.6				1,164,649				6.6
Total loans			19,358,443				100.0	%			17,532,043				100.0	%
Allowance for loan losses			(308,847	)							(108,525	)
Net loans		$	19,049,596							$	17,423,518

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 September 30, 2020:
Balances – June 30, 2020		$	306,196			$	68,298			$	374,494
Net charge-offs			(4,421	)			—				(4,421	)
Provision for credit losses			7,072				128				7,200
Balances – September 30, 2020		$	308,847			$	68,426			$	377,273
Nine months ended September 30, 2020:
Balances – December 31, 2019		$	108,525			$	—			$	108,525
Adoption of Current Expected Credit Loss (CECL) methodology			39,588				54,924				94,512
Balances – January 1, 2020			148,113				54,924				203,037
Net charge-offs			(22,653	)			—				(22,653	)
Provision for credit losses			183,387				13,502				196,889
Balances – September 30, 2020		$	308,847			$	68,426			$	377,273
Three months ended September 30, 2019:
Balances – June 30, 2019		$	106,642			$	—			$	106,642
Net charge-offs			(5,495	)			—				(5,495	)
Provision for credit losses			7,854				—				7,854
Balances – September 30, 2019		$	109,001			$	—			$	109,001
Nine months ended September 30, 2019:
Balances – December 31, 2018		$	102,264			$	—			$	102,264
Net charge-offs			(14,566	)			—				(14,566	)
Provision for credit losses			21,303				—				21,303
Balances – September 30, 2019		$	109,001			$	—			$	109,001

Bank OZK
Summary of Deposits – By Account Type
Unaudited

		September 30, 2020								December 31, 2019
		(Dollars in thousands)
Non-interest bearing		$	3,908,207				18.4	%		$	2,795,251				15.1	%
Interest bearing:
Transaction (NOW)			2,973,192				14.0				2,706,426				14.7
Savings and money market			4,611,840				21.7				5,601,181				30.3
Time deposits less than $100			3,483,557				16.4				3,321,446				18.0
Time deposits of $100 or more			6,310,609				29.5				4,049,955				21.9
Total deposits		$	21,287,405				100.0	%		$	18,474,259				100.0	%

Summary of Deposits – By Customer Type
Unaudited

		September 30, 2020								December 31, 2019
		(Dollars in thousands)
Consumer		$	10,909,452				51.2	%		$	7,526,014				40.7	%
Commercial			5,963,072				28.0				4,334,366				23.5
Public Funds			2,330,726				10.9				3,782,415				20.5
Brokered			1,580,165				7.4				2,115,193				11.4
Reciprocal			503,990				2.5				716,271				3.9
Total deposits		$	21,287,405				100.0	%		$	18,474,259				100.0	%

Bank OZK
Selected Consolidated Financial Data
Unaudited

		Three Months Ended September 30,												Nine Months Ended September 30,
		2020				2019				% Change				2020				2019				% Change
		(Dollars in thousands, except per share amounts)
Income statement data:
Net interest income		$	224,657			$	218,780				2.7	%		$	651,024			$	669,204				(2.7	)%
Provision for credit losses			7,200				7,854				(8.3	)			196,889				21,303				824.2
Non-interest income			26,676				26,446				0.9				75,947				77,121				(1.5	)
Non-interest expense			105,641				100,914				4.7				310,019				296,724				4.5
Net income available to common stockholders			109,253				103,891				5.2				171,385				325,100				(47.3	)
Pre-tax pre-provision net revenue (1)			145,692				144,312				1.0				416,952				449,601				(7.3	)
Common share and per common share data:
Net income per share − diluted		$	0.84			$	0.81				3.7	%		$	1.32			$	2.52				(47.6	)%
Net income per share − basic			0.84				0.81				3.7				1.33				2.52				(47.2	)
Dividends per share			0.2725				0.24				13.5				0.8025				0.69				16.3
Book value per share			32.37				31.63				2.3				32.37				31.63				2.3
Tangible book value per share(1)			27.13				26.30				3.2				27.13				26.30				3.2
Weighted-average diluted shares outstanding (thousands)			129,470				129,012								129,398				128,995
End of period shares outstanding (thousands)			129,342				128,946								129,342				128,946
Balance sheet data at period end:
Total assets		$	26,888,308			$	23,402,679				14.9	%		$	26,888,308			$	23,402,679				14.9	%
Total loans			19,358,443				17,734,851				9.2				19,358,443				17,734,851				9.2
Non-purchased loans			18,419,958				16,307,621				13.0				18,419,958				16,307,621				13.0
Purchased loans			938,485				1,427,230				(34.2	)			938,485				1,427,230				(34.2	)
Allowance for loan losses			308,847				109,001				183.3				308,847				109,001				183.3
Foreclosed assets			16,543				33,319				(50.3	)			16,543				33,319				(50.3	)
Investment securities − AFS			3,468,243				2,414,722				43.6				3,468,243				2,414,722				43.6
Goodwill and other intangible assets, net			677,251				687,397				(1.5	)			677,251				687,397				(1.5	)
Deposits			21,287,405				18,440,078				15.4				21,287,405				18,440,078				15.4
Other borrowings			750,949				301,421				149.1				750,949				301,421				149.1
Subordinated notes			223,950				223,567				0.2				223,950				223,567				0.2
Subordinated debentures			120,335				119,775				0.5				120,335				119,775				0.5
Unfunded balance of closed loans			11,604,614				11,429,918				1.5				11,604,614				11,429,918				1.5
Reserve for losses on unfunded loan commitments			68,426				—			NM					68,426				—			NM
Total common stockholders’ equity			4,186,285				4,078,324				2.6				4,186,285				4,078,324				2.6
Net unrealized gains on investment securities AFS included in common stockholders' equity			61,116				27,648								61,116				27,648
Loan (including purchased loans) to deposit ratio			90.94	%			96.18	%							90.94	%			96.18	%
Selected ratios:
Return on average assets(2)			1.63	%			1.81	%							0.90	%			1.92	%
Return on average common stockholders’ equity(2)			10.48				10.22								5.55				11.07
Return on average tangible common stockholders’ equity(1) (2)			12.52				12.33								6.65				13.44
Average common equity to total average assets			15.56				17.69								16.23				17.31
Net interest margin – FTE(2)			3.69				4.26								3.79				4.41
Efficiency ratio			41.77				40.98								42.38				39.58
Net charge-offs to average non-purchased loans(2) (3)			0.09				0.07								0.07				0.08
Net charge-offs to average total loans(2)			0.09				0.12								0.16				0.11
Nonperforming loans to total loans(4)			0.15				0.17								0.15				0.17
Nonperforming assets to total assets(4)			0.17				0.26								0.17				0.26
Allowance for loan losses to total loans (5)			1.60				0.61								1.60			0.61
Other information:
Non-accrual loans(4)		$	27,181			$	25,552							$	27,181			$	25,552
Accruing loans − 90 days past due(4)			—				—								—				—
Troubled and restructured non-purchased loans − accruing(4)			1,251				1,510								1,251				1,510

(1) Calculations of pre-tax pre-provision net revenue, tangible book value per common share and return on 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
		September 30,				June 30,
		2020				2020				% Change
	(Dollars in thousands, except per share amounts)
Income statement data:
Net interest income		$	224,657			$	216,593				3.7	%
Provision for credit losses			7,200				72,026				(90.0	)
Non-interest income			26,676				21,591				23.6
Non-interest expense			105,641				100,953				4.6
Net income available to common stockholders			109,253				50,266				117.3
Pre-tax pre-provision net revenue(1)			145,692				137,231				6.2
Common share and per common share data:
Net income per share − diluted		$	0.84			$	0.39				115.4	%
Net income per share − basic			0.84				0.39				115.4
Dividends per share			0.2725				0.27				0.9
Book value per share			32.37				31.78				1.9
Tangible book value per share (1)			27.13				26.53				2.3
Weighted-average diluted shares outstanding (thousands)			129,470				129,399
End of period shares outstanding (thousands)			129,342				129,350
Balance sheet data at period end:
Total assets		$	26,888,308			$	26,380,409				1.9	%
Total loans			19,358,443				19,311,078				0.2
Non-purchased loans			18,419,958				18,247,431				0.9
Purchased loans			938,485				1,063,647				(11.8	)
Allowance for loan losses			308,847				306,196				0.9
Foreclosed assets			16,543				18,328				(9.7	)
Investment securities − AFS			3,468,243				3,299,944				5.1
Goodwill and other intangible assets, net			677,251				679,166				(0.3	)
Deposits			21,287,405				20,723,598				2.7
Other borrowings			750,949				903,696				(16.9	)
Subordinated notes			223,950				223,854				0.1
Subordinated debentures			120,335				120,194				0.1
Unfunded balance of closed loans			11,604,614				11,411,441				1.7
Reserve for losses on unfunded loan commitments			68,426				68,298				0.2
Total common stockholders’ equity			4,186,285				4,110,666				1.8
Net unrealized gains on investment securities AFS included in common stockholders' equity			61,116				63,177
Loan (including purchased loans) to deposit ratio			90.94	%			93.18	%
Selected ratios:
Return on average assets(2)			1.63	%			0.78	%
Return on average common stockholders’ equity(2)			10.48				4.92
Return on average tangible common stockholders’ equity(1) (2)			12.52				5.89
Average common equity to total average assets			15.56				15.93
Net interest margin – FTE(2)			3.69				3.74
Efficiency ratio			41.77				42.07
Net charge-offs to average non-purchased loans(2) (3)			0.09				0.05
Net charge-offs to average total loans(2)			0.09				0.29
Nonperforming loans to total loans(4)			0.15				0.18
Nonperforming assets to total assets(4)			0.17				0.19
Allowance for loan losses to total loans (5)			1.60				1.59
Other information:
Non-accrual loans(4)		$	27,181			$	31,083
Accruing loans − 90 days past due(4)			—				—
Troubled and restructured non-purchased loans − accruing(4)			1,251				934

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

Bank OZK
Supplemental Quarterly Financial Data
Unaudited

		12/31/18				3/31/19				6/30/19				9/30/19				12/31/19				3/31/20				6/30/20				9/30/20
		(Dollars in thousands, except per share amounts)
Earnings Summary:
Net interest income		$	228,382			$	225,888			$	224,536			$	218,780			$	214,977			$	209,775			$	216,593			$	224,657
Federal tax (FTE) adjustment			1,219				1,207				1,136				1,038				1,028				1,133				1,753				1,605
Net interest income (FTE)			229,601				227,095				225,672				219,818				216,005				210,908				218,346				226,262
Provision for credit losses			(7,271	)			(6,681	)			(6,769	)			(7,854	)			(4,938	)			(117,663	)			(72,026	)			(7,200	)
Non-interest income			27,560				24,072				26,603				26,446				30,406				27,680				21,591				26,676
Non-interest expense			(94,893	)			(96,678	)			(99,131	)			(100,914	)			(104,406	)			(103,425	)			(100,953	)			(105,641	)
Pretax income (FTE)			154,997				147,808				146,375				137,496				137,067				17,500				66,958				140,097
FTE adjustment			(1,219	)			(1,207	)			(1,136	)			(1,038	)			(1,028	)			(1,133	)			(1,753	)			(1,605	)
Provision for income taxes			(38,750	)			(35,889	)			(34,726	)			(32,574	)			(35,240	)			(4,509	)			(14,948	)			(29,251	)
Noncontrolling interest			3				(6	)			(10	)			7				7				8				9				12
Net income available to common stockholders		$	115,031			$	110,706			$	110,503			$	103,891			$	100,806			$	11,866			$	50,266			$	109,253
Earnings per common share – diluted		$	0.89			$	0.86			$	0.86			$	0.81			$	0.78			$	0.09			$	0.39			$	0.84
Non-interest Income:
Service charges on deposit accounts		$	10,585			$	9,722			$	10,291			$	10,827			$	10,933			$	10,009			$	8,281			$	9,427
Trust income			1,821				1,730				1,839				1,975				2,010				1,939				1,759				1,936
BOLI income:
Increase in cash surrender value			5,269				5,162				5,178				5,208				5,167				5,067				5,057				5,081
Death benefits			482				—				—				206				2,989				608				—				—
Loan service, maintenance and other fees			5,245				4,874				4,565				4,197				4,282				3,716				3,394				3,351
Other income from purchased loans			2,370				795				1,455				674				759				—				—				—
Gains on sales of other assets			465				284				402				189				1,358				161				621				891
Net gains on investment securities			—				—				713				—				—				2,223				—				2,244
Other			1,323				1,505				2,160				3,170				2,908				3,957				2,479				3,746
Total non-interest income		$	27,560			$	24,072			$	26,603			$	26,446			$	30,406			$	27,680			$	21,591			$	26,676
Non-interest Expense:
Salaries and employee benefits		$	41,837			$	44,868			$	47,558			$	48,376			$	52,050			$	51,473			$	48,410			$	53,119
Net occupancy and equipment			14,027				14,750				14,587				14,825				14,855				15,330				15,756				16,676
Other operating expenses			39,029				37,060				36,986				37,713				37,501				36,622				36,787				35,846
Total non-interest expense		$	94,893			$	96,678			$	99,131			$	100,914			$	104,406			$	103,425			$	100,953			$	105,641
Balance Sheet Data:
Total assets		$	22,388,030			$	23,005,652			$	22,960,731			$	23,402,679			$	23,555,728			$	24,565,810			$	26,380,409			$	26,888,308
Non-purchased loans			15,073,791				15,610,681				15,786,809				16,307,621				16,224,539				17,030,378				18,247,431				18,419,958
Purchased loans			2,044,032				1,864,715				1,698,396				1,427,230				1,307,504				1,197,826				1,063,647				938,485
Investment securities – AFS			2,862,340				2,769,602				2,548,489				2,414,722				2,277,389				2,816,556				3,299,944				3,468,243
Deposits			17,938,415				18,476,868				18,186,215				18,440,078				18,474,259				18,809,190				20,723,598				21,287,405
Unfunded balance of closed loans			11,364,975				11,544,218				11,167,055				11,429,918				11,325,598				11,334,737				11,411,441				11,604,614
Common stockholders' equity			3,770,330				3,882,643				3,993,247				4,078,324				4,150,351				4,083,150				4,110,666				4,186,285

Bank OZK
Supplemental Quarterly Financial Data (Continued)
Unaudited

		12/31/18				3/31/19				6/30/19				9/30/19				12/31/19				3/31/20				6/30/20				9/30/20
		(Dollars in thousands, except per share amounts)
Allowance for Credit Losses:
Balance at beginning of period		$	98,200			$	102,264			$	105,954			$	106,642			$	109,001			$	108,525			$	316,409			$	374,494
Adoption of CECL(1) methodology			—				—				—				—				—				94,512				—				—
Net charge-offs			(3,207	)			(2,991	)			(6,081	)			(5,495	)			(5,414	)			(4,291	)			(13,941	)			(4,421	)
Provision for credit losses			7,271				6,681				6,769				7,854				4,938				117,663				72,026				7,200
Balance at end of period		$	102,264			$	105,954			$	106,642			$	109,001			$	108,525			$	316,409			$	374,494			$	377,273
Allowance for loan losses		$	102,264			$	105,954			$	106,642			$	109,001			$	108,525			$	238,737			$	306,196			$	308,847
Reserve for losses on unfunded loan commitments			—				—				—				—				—				77,672				68,298				68,426
Total allowance for credit losses		$	102,264			$	105,954			$	106,642			$	109,001			$	108,525			$	316,409			$	374,494			$	377,273
Selected Ratios:
Net interest margin – FTE(2)			4.55	%			4.53	%			4.45	%			4.26	%			4.15	%			3.96	%			3.74	%			3.69	%
Efficiency ratio			36.90				38.49				39.30				40.98				42.37				43.35				42.07				41.77
Net charge-offs to average non-purchased loans(2) (3)			0.06				0.05				0.12				0.07				0.10				0.08				0.05				0.09
Net charge-offs to average total loans(2)			0.07				0.07				0.14				0.12				0.12				0.10				0.29				0.09
Nonperforming loans to total loans(4)			0.23				0.22				0.15				0.17				0.15				0.16				0.18				0.15
Nonperforming assets to total assets(4)			0.23				0.21				0.25				0.26				0.18				0.19				0.19				0.17
Allowance for loan losses to total loans (5)			0.60				0.61				0.61				0.61				0.62				1.31				1.59				1.60
Loans past due 30 days or more, including past due non-accrual loans, to total loans(4)			0.28				0.28				0.13				0.14				0.19				0.18				0.13				0.13

(1)  Current Expected Credit Loss.

(2)  Ratios for interim periods annualized based on actual days.

(3)  Excludes purchased loans and net charge-offs related to such loans.

(4)  Excludes purchased loans, except for their inclusion in total assets.

(5)  Excludes reserve for losses on unfunded loan commitments.

Bank OZK
Average Consolidated Balance Sheets and Net Interest Analysis – FTE
Unaudited

		Three Months Ended September 30,																								Nine Months Ended September 30,
		2020												2019												2020												2019
		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
Earning assets:
Interest earning deposits and federal funds sold		$	1,705,652			$	532				0.12	%		$	486,174			$	2,647				2.16	%		$	1,459,814			$	5,237				0.48	%		$	242,476			$	4,001				2.21	%
Investment securities:
Taxable			2,216,041				9,666				1.74				2,027,267				12,511				2.45				1,979,368				31,480				2.12				2,169,218				40,992				2.53
Tax-exempt – FTE			1,193,407				6,573				2.19				462,927				4,256				3.65				944,552				18,527				2.62				495,694				13,835				3.73
Non-purchased loans – FTE			18,311,166				236,846				5.15				15,934,033				245,099				6.10				17,602,817				701,892				5.33				15,727,447				741,375				6.30
Purchased loans			999,438				16,269				6.48				1,553,398				26,042				6.65				1,132,334				54,743				6.46				1,760,740				84,756				6.44
Total earning assets – FTE			24,425,704				269,886				4.40				20,463,799				290,555				5.63				23,118,885				811,879				4.69				20,395,575				884,959				5.80
Non-interest earning assets			2,235,853												2,323,028												2,302,225												2,277,584
Total assets		$	26,661,557											$	22,786,827											$	25,421,110											$	22,673,159
LIABILITIES AND STOCKHOLDERS’ EQUITY
Interest bearing liabilities:
Deposits:
Savings and interest bearing transaction		$	7,581,707			$	5,496				0.29	%		$	8,792,998			$	30,108				1.36	%		$	7,742,865			$	32,945				0.57	%		$	9,318,915			$	103,721				1.49	%
Time deposits of $100 or more			6,101,542				20,858				1.36				3,564,862				19,803				2.20				5,259,616				66,813				1.70				3,292,375				52,056				2.11
Other time deposits			3,664,931				11,919				1.29				3,069,997				16,337				2.11				3,584,047				41,448				1.54				2,697,660				40,950				2.03
Total interest bearing deposits			17,348,180				38,273				0.88				15,427,857				66,248				1.70				16,586,528				141,206				1.14				15,308,950				196,727				1.72
Repurchase agreements with customers			7,093				4				0.24				9,037				5				0.24				7,686				17				0.29				14,062				39				0.37
Other borrowings (1)			793,350				1,156				0.58				29,422				90				1.21				711,408				2,168				0.41				122,254				1,497				1.64
Subordinated notes			223,899				3,207				5.70				223,516				3,216				5.71				223,801				9,551				5.70				223,419				9,542				5.71
Subordinated debentures (1)			120,253				984				3.26				119,700				1,178				3.90				120,119				3,420				3.80				119,558				4,570				5.11
Total interest bearing liabilities			18,492,775				43,624				0.94				15,809,532				70,737				1.78				17,649,542				156,362				1.18				15,788,243				212,375				1.80
Non-interest bearing liabilities:
Non-interest bearing deposits			3,764,063												2,728,596												3,391,162												2,736,350
Other non-interest bearing liabilities			253,211												213,505												251,723												220,126
Total liabilities			22,510,049												18,751,633												21,292,427												18,744,719
Common stockholders’ equity			4,148,409												4,032,066												4,125,578												3,925,321
Noncontrolling interest			3,099												3,128												3,105												3,119
Total liabilities and stockholders’ equity		$	26,661,557											$	22,786,827											$	25,421,110											$	22,673,159
Net interest income – FTE						$	226,262											$	219,818											$	655,517											$	672,584
Net interest margin – FTE											3.69	%											4.26	%											3.79	%											4.41	%

⁽¹⁾   The interest expense and the rates for “other borrowings” and for “subordinated debentures” were affected by capitalized interest. Capitalized interest included in other borrowings totaled $0.03 million for the third quarter and $0.65 million for the first nine months of 2020 compared to $0.11 million for the third quarter and $0.86 million for the first nine months of 2019. In the absence of this interest capitalization, the rates on other borrowings would have been 0.59% for the third quarter and 0.53% for the first nine months of 2020 and 2.69% for the third quarter and 2.57% for the first nine months of 2019. Capitalized interest included in subordinated debentures totaled $0.01 million for the third quarter and $0.18 million for the first nine months of 2020, compared to $0.45 million for both the third quarter and first nine months of 2019. In the absence of this interest capitalization, the rates on subordinated debentures would have been 3.27% for the third quarter and 4.00% for the first nine months of 2020 and 5.39% for the third quarter and 5.61% for the first nine months of 2019.

Bank OZK
Reconciliation of Non-GAAP Financial Measures

Calculation of Average Tangible Common Stockholders’ Equity
and the Annualized Return on Average Tangible Common Stockholders’ Equity
Unaudited

		Three Months Ended												Nine Months Ended
		September 30,								June 30,				September 30,
		2020				2019				2020				2020				2019
		(Dollars in thousands)
Net income available to common stockholders		$	109,253			$	103,891			$	50,266			$	171,385			$	325,100
Average common stockholders’ equity before noncontrolling interest		$	4,148,409			$	4,032,066			$	4,110,038			$	4,125,578			$	3,925,321
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			(17,461	)			(28,275	)			(19,563	)			(19,803	)			(31,290	)
Total average intangibles			(678,250	)			(689,064	)			(680,352	)			(680,592	)			(692,079	)
Average tangible common stockholders’ equity		$	3,470,159			$	3,343,002			$	3,429,686			$	3,444,986			$	3,233,242
Return on average common stockholders’ equity(1)			10.48	%			10.22	%			4.92	%			5.55	%			11.07	%
Return on average tangible common stockholders’ equity(1)			12.52	%			12.33	%			5.89	%			6.65	%			13.44	%

⁽¹⁾ Ratios for interim periods annualized based on actual days.

Calculation of Total Tangible Common Stockholders’ Equity
and Tangible Book Value per Common Share
Unaudited

		September 30,								June 30,
		2020				2019				2020
		(In thousands, except per share amounts)
Total common stockholders’ equity before noncontrolling interest		$	4,186,285			$	4,078,324			$	4,110,666
Less intangible assets:
Goodwill			(660,789	)			(660,789	)			(660,789	)
Core deposit and other intangible assets, net of accumulated amortization			(16,462	)			(26,608	)			(18,377	)
Total intangibles			(677,251	)			(687,397	)			(679,166	)
Total tangible common stockholders' equity		$	3,509,034			$	3,390,927			$	3,431,500
Shares of common stock outstanding			129,342				128,946				129,350
Book value per common share		$	32.37			$	31.63			$	31.78
Tangible book value per common share		$	27.13			$	26.30			$	26.53

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

		September 30,
		2020				2019
		(Dollars in thousands)
Total common stockholders’ equity before noncontrolling interest		$	4,186,285			$	4,078,324
Less intangible assets:
Goodwill			(660,789	)			(660,789	)
Core deposit and other intangible assets, net of accumulated amortization			(16,462	)			(26,608	)
Total intangibles			(677,251	)			(687,397	)
Total tangible common stockholders' equity		$	3,509,034			$	3,390,927
Total assets		$	26,888,308			$	23,402,679
Less intangible assets:
Goodwill			(660,789	)			(660,789	)
Core deposit and other intangible assets, net of accumulated amortization			(16,462	)			(26,608	)
Total intangibles			(677,251	)			(687,397	)
Total tangible assets		$	26,211,057			$	22,715,282
Ratio of total common stockholders’ equity to total assets			15.57	%			17.43	%
Ratio of total tangible common stockholders’ equity to total tangible assets			13.39	%			14.93	%

Calculation of Pre-Tax Pre-Provision Net Revenue

Unaudited

		Three Months Ended												Nine Months Ended
		September 30,								June 30,				September 30,
		2020				2019				2020				2020				2019
		(Dollars in thousands)
Income before taxes		$	138,492			$	136,458			$	65,205			$	220,063			$	428,298
Provision for credit losses			7,200				7,854				72,026				196,889				21,303
Pre-tax pre-provision net revenue		$	145,692			$	144,312			$	137,231			$	416,952			$	449,601

FAQ

What was Bank OZK's net income for Q3 2020?

Bank OZK reported a net income of $109.3 million for Q3 2020.

How much did Bank OZK's diluted EPS increase in Q3 2020?

Diluted earnings per share for Q3 2020 were $0.84, a 3.7% increase from the previous year.

What was the provision for credit losses for Bank OZK in Q3 2020?

The provision for credit losses for Q3 2020 was $7.2 million.

How did total loans change at Bank OZK by September 30, 2020?

Total loans increased by 9.2% to $19.36 billion compared to September 30, 2019.

What is the impact of COVID-19 on Bank OZK's financial results?

The COVID-19 pandemic led to a substantial provision for credit losses, increasing the total allowance for credit losses to $377.3 million.