Bank OZK Announces Third Quarter 2022 Earnings

Rhea-AI Summary

Bank OZK reported a net income of $128.3 million for Q3 2022, down 1.5% from Q3 2021. Diluted EPS increased by 8.0% to $1.08. For the first nine months, net income decreased by 9.4% to $388.7 million. The provision for credit losses rose to $39.8 million in Q3 2022 compared to a negative provision in Q3 2021. Total loans reached $19.51 billion, a 6.6% increase year-over-year. The bank repurchased 1.23 million shares for $47.7 million in Q3. Pre-tax pre-provision net revenue (PPNR) surged 27.2% to $208.1 million.

Positive

• Diluted EPS increased 8.0% to $1.08 in Q3 2022.
• Pre-tax pre-provision net revenue (PPNR) rose 27.2% to $208.1 million.
• Total loans grew 6.6% to $19.51 billion year-over-year.
• Share repurchases totaled 1.23 million shares for $47.7 million in Q3.

Negative

• Q3 2022 net income decreased 1.5% from Q3 2021.
• Net income for the first nine months fell 9.4% to $388.7 million.
• Provision for credit losses increased to $39.8 million in Q3 2022.

LITTLE ROCK, Ark., Oct. 20, 2022 (GLOBE NEWSWIRE) -- Bank OZK (the “Bank”) (Nasdaq: OZK) today announced that net income available to common stockholders for the third quarter of 2022 was $128.3 million, a 1.5% decrease from $130.3 million for the third quarter of 2021. Diluted earnings per common share for the third quarter of 2022 were $1.08, an 8.0% increase from $1.00 for the third quarter of 2021.

For the nine months ended September 30, 2022, net income available to common stockholders was $388.7 million, a 9.4% decrease from $429.2 million for the first nine months of 2021. Diluted earnings per common share for the first nine months of 2022 were $3.20, a 3.0% decrease from $3.30 for the first nine months of 2021.

The Bank’s provision for credit losses was $39.8 million for the third quarter and $51.0 million for the first nine months of 2022 compared to negative provisions for credit losses of $7.5 million for the third quarter and $69.9 million for the first nine months of 2021. The growth in both funded and unfunded loan balances during the quarter contributed to the higher provision for credit losses, which impacted net income. The Bank’s total allowance for credit losses (“ACL”) was $335.6 million at September 30, 2022. The calculations of the Bank’s provision expense for the third quarter and first nine months of 2022 and its total ACL at September 30, 2022 were based on a number of key estimates, assumptions and economic forecasts and included certain qualitative adjustments to capture items not fully reflected in the modeled results.

Pre-tax pre-provision net revenue (“PPNR”) was $208.1 million for the third quarter of 2022, a 27.2% increase from $163.5 million for the third quarter of 2021. For the nine months ended September 30, 2022, PPNR was $564.0 million, a 15.3% increase from $489.0 million for the first nine months of 2021. The calculation of PPNR and the reconciliation to generally accepted accounting principles (“GAAP”) are included in the schedules accompanying this release.

The Bank’s annualized returns on average assets, average common stockholders’ equity and average tangible common stockholders’ equity for the third quarter of 2022 were 1.97%, 11.85% and 14.02%, respectively, compared to 1.98%, 11.41% and 13.39%, respectively, for the third quarter of 2021. 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 2022 were 1.99%, 11.97%, and 14.14%, respectively, compared to 2.15%, 12.98%, and 15.31%, respectively, for the first nine months of 2021. The calculation of the Bank’s returns on average common stockholders’ equity and average tangible common stockholders’ equity and the reconciliations to GAAP are included in the schedules accompanying this release.

George Gleason, Chairman and Chief Executive Officer stated, “We are pleased to report our strong results for the third quarter of 2022. Our results were highlighted by our fourth consecutive quarter of record RESG loan originations and solid growth in RESG’s funded loans, along with meaningful contributions to growth from our Community Banking and other lending teams. This reflects our dual focus on both organic loan growth and increased portfolio diversification. Our strong capital and liquidity, disciplined credit culture and outstanding team have us well positioned for the current environment and the longer term.”

KEY BALANCE SHEET METRICS

Total loans were $19.51 billion at September 30, 2022, a 6.6% increase from $18.31 billion at September 30, 2021. Non-purchased loans were $19.10 billion at September 30, 2022, a 7.9% increase from $17.71 billion at September 30, 2021. Purchased loans, which consist of loans acquired in previous acquisitions, were $0.41 billion at September 30, 2022, a 31.4% decrease from $0.60 billion at September 30, 2021.

Deposits were $20.40 billion at September 30, 2022, a 1.5% increase from $20.10 billion at September 30, 2021. Total assets were $26.23 billion at September 30, 2022, a 0.3% increase from $26.14 billion at September 30, 2021.

Common stockholders’ equity was $4.20 billion at September 30, 2022, a 7.7% decrease from $4.55 billion at September 30, 2021. Tangible common stockholders’ equity was $3.54 billion at September 30, 2022, an 8.9% decrease from $3.88 billion at September 30, 2021. Book value per common share was $35.67 at September 30, 2022, a 0.9% increase from $35.35 at September 30, 2021. Tangible book value per common share was $30.02 at September 30, 2022, a 0.4% decrease from $30.14 at September 30, 2021. The calculations of the Bank’s common stockholders’ equity, tangible common stockholders’ equity and tangible book value per common share and the reconciliations to GAAP are included in the schedules accompanying this release.

The Bank’s ratio of total common stockholders’ equity to total assets was 16.01% at September 30, 2022, compared to 17.42% at September 30, 2021. Its ratio of total tangible common stockholders’ equity to total tangible assets was 13.83% at September 30, 2022, compared to 15.24% at September 30, 2021. The calculation of the Bank’s ratio of total tangible common stockholders’ equity to total tangible assets and the reconciliation to GAAP are included in the schedules accompanying this release.

STOCK REPURCHASES

During the quarter just ended, the Bank repurchased approximately 1.23 million shares of its common stock at a weighted average price of $38.96, for a total of $47.7 million. During the first nine months of 2022, the Bank repurchased approximately 7.80 million shares of its common stock at a weighted average price of $41.90, for a total of $326.7 million. Our current stock repurchase program expires November 4, 2022. In evaluating any plans for stock repurchases after expiration of the current program, the Bank will consider a variety of factors including its capital position, expected growth, alternative uses of capital, liquidity, financial performance, stock price, current and expected macro economic environment, regulatory requirements and other factors.

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 21, 2022. 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, average tangible common stockholders’ equity, tangible book value per common share, common stockholders’ equity, tangible common stockholders’ equity, the ratio of total tangible common stockholders’ equity to total tangible assets, and PPNR, to assess the strength of its capital, its ability to generate earnings on tangible capital invested by its shareholders and trends in its net revenue. These measures typically adjust GAAP financial measures to exclude intangible assets or provision for credit losses. Management believes presentation of these non-GAAP financial measures provides useful supplemental information which contributes to a proper understanding of the financial results and capital levels of the Bank. These non-GAAP disclosures should not be viewed as a substitute for financial results determined in accordance with GAAP, and they are not necessarily comparable to non-GAAP performance measures that may be presented by other banks. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are included in the tables at the end of this release under the caption “Reconciliation of Non-GAAP Financial Measures.”

FORWARD-LOOKING STATEMENTS

This presentation and other communications by the Bank include certain “forward-looking statements” regarding the Bank’s plans, expectations, thoughts, beliefs, estimates, goals and outlook for the future that are intended to be covered by the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on management’s expectations as well as certain assumptions and estimates made by, and information available to, management at the time. Those statements are not guarantees of future results or performance and are subject to certain known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those expressed in, or implied by, such forward-looking statements. These risks, uncertainties and other factors include, but are not limited to: potential delays or other problems in implementing the Bank’s growth, expansion and acquisition strategies, including hiring or retaining qualified personnel, obtaining regulatory or other approvals, delays in identifying satisfactory sites, obtaining permits and designing, constructing and opening new offices or relocating, selling or closing existing offices; the ability to enter into and/or close additional acquisitions; the availability of and access to capital; possible downgrades in the Bank’s credit ratings or outlook which could increase the costs of or decrease the availability of funding from capital markets; the ability to attract new or retain existing or acquired deposits or to retain or grow loans, including growth from unfunded closed loans; the ability to generate future revenue growth or to control future growth in non-interest expense; interest rate fluctuations, including changes in the yield curve between short-term and long-term interest rates or changes in the relative relationships of various interest rate indices; the potential impact of the transition from the London Interbank Offered Rate (“LIBOR”) as a reference rate; competitive factors and pricing pressures, including their effect on the Bank’s net interest margin or core spread; general economic, unemployment, credit market and real estate market conditions, and the effect of such conditions on the creditworthiness of borrowers, collateral values, the value of investment securities and asset recovery values; recently enacted and potential laws and regulatory requirements, including those actions in response to the coronavirus (“COVID-19”) pandemic, or changes to existing laws and regulatory requirements, including changes affecting oversight of the financial services industry or changes in the interpretation and enforcement of such laws and requirements, and the costs and expenses to comply with new and/or existing legislation and regulatory requirements; changes in U.S. government monetary and fiscal policy; FDIC special assessments or changes to regular assessments; the ability to keep pace with technological changes, including changes regarding maintaining cybersecurity; the impact of failure in, or breach of, our operational or security systems or infrastructure, or those of third parties with whom we do business, including as a result of cyber-attacks or an increase in the incidence or severity of fraud, illegal payments, security breaches or other illegal acts impacting the Bank or its customers; natural disasters or acts of war or terrorism; the adverse effects of the ongoing global COVID-19 pandemic, including the duration of the pandemic and actions taken to contain or treat COVID-19, on the Bank, the Bank’s customers, the Bank’s staff, the global economy and the financial markets; the potential impact of continuing inflationary pressures; the potential impact of supply chain disruptions; national, international or political instability or military conflict, including the ongoing war in Ukraine; the competition and costs of recruiting and retaining human talent; impairment of our goodwill or other intangible assets; adoption of new accounting standards, or changes in existing standards; and adverse results (including costs, fines, reputational harm and/or other negative effects) from current or future litigation, regulatory examinations or other legal and/or regulatory actions or rulings as well as other factors identified in this communication or as detailed from time to time in our public filings, including those factors described in the disclosures under the headings “Forward-Looking Information” and “Item 1A. Risk Factors” in our most recent Annual Report on Form 10-K for the year ended December 31, 2021 and our quarterly reports on Form 10-Q. Should one or more of the foregoing risks materialize, or should underlying assumptions prove incorrect, actual results or outcomes may vary materially from those described in, or implied by, such forward-looking statements. The Bank disclaims any obligation to update or revise any forward-looking statements based on the occurrence of future events, the receipt of new information or otherwise.

GENERAL INFORMATION

Bank OZK (Nasdaq: OZK) is a regional bank providing innovative financial solutions delivered by expert bankers with a relentless pursuit of excellence. Established in 1903, Bank OZK conducts banking operations with over 240 offices in eight states including Arkansas, Georgia, Florida, North Carolina, Texas, New York, California and Mississippi and had $26.23 billion in total assets as of September 30, 2022. Bank OZK can be found at www.ozk.com and on Facebook, Twitter and LinkedIn or contacted at (501) 978-2265 or P.O. Box 8811, Little Rock, Arkansas 72231-8811.

Bank OZK
Consolidated Balance Sheets
Unaudited

		September 30,				December 31,
		2022				2021
		(Dollars in thousands, except per share amounts)
ASSETS
Cash and cash equivalents		$	895,824			$	2,053,829
Investment securities ― available for sale (“AFS”)			3,528,077				3,916,733
Investment securities ― trading			2,481				14,957
Federal Home Loan Bank of Dallas and other bankers’ bank stocks			31,841				40,788
Non-purchased loans			19,103,546				17,791,610
Purchased loans			410,166				516,215
Allowance for loan losses			(200,098	)			(217,380	)
Net loans			19,313,614				18,090,445
Premises and equipment, net			684,930				695,857
Foreclosed assets			6,559				5,744
Accrued interest receivable			97,564				83,025
Bank owned life insurance (“BOLI”)			784,926				774,822
Goodwill and other intangible assets, net			664,732				669,063
Other, net			221,571				185,167
Total assets		$	26,232,119			$	26,530,430
LIABILITIES AND STOCKHOLDERS’ EQUITY
Deposits:
Demand non-interest bearing		$	4,824,209			$	4,983,788
Savings and interest bearing transaction			9,763,638				9,245,727
Time			5,814,029				5,979,619
Total deposits			20,401,876				20,209,134
Other borrowings			456,466				756,321
Subordinated notes			346,741				346,133
Subordinated debentures			121,450				121,033
Reserve for losses on unfunded loan commitments			135,537				71,609
Accrued interest payable and other liabilities			227,505				186,840
Total liabilities			21,689,575				21,691,070
Commitments and contingencies
Stockholders’ equity:
Preferred stock; $0.01 par value; 100,000,000 shares authorized; 14,000,000 issued and outstanding at September 30, 2022 and December 31, 2021			338,980				338,980
Common stock; $0.01 par value; 300,000,000 shares authorized;     117,761,605 and 125,443,748 shares issued and outstanding at September 30, 2022 and December 31, 2021, respectively			1,178				1,254
Additional paid-in capital			1,773,562				2,093,702
Retained earnings			2,653,377				2,378,466
Accumulated other comprehensive (loss) income			(227,673	)			23,841
Total stockholders’ equity before noncontrolling interest			4,539,424				4,836,243
Noncontrolling interest			3,120				3,117
Total stockholders’ equity			4,542,544				4,839,360
Total liabilities and stockholders’ equity		$	26,232,119			$	26,530,430

Bank OZK
Consolidated Statements of Income
Unaudited

	Three Months Ended September 30,								Nine Months Ended September 30,
	2022				2021				2022				2021
	(Dollars in thousands, except per share amounts)
Interest income:
Non-purchased loans	$	295,054			$	238,258			$	791,313			$	716,639
Purchased loans		7,148				11,350				24,300				34,985
Investment securities:
Taxable		10,269				9,236				31,246				26,786
Tax-exempt		7,126				3,296				14,132				10,860
Deposits with banks and federal funds sold		3,690				523				6,155				1,556
Total interest income		323,287				262,663				867,146				790,826
Interest expense:
Deposits		21,997				12,326				41,343				54,908
Other borrowings		2,460				1,017				4,500				3,010
Subordinated notes		2,631				429				7,808				6,755
Subordinated debentures		1,582				934				3,741				2,814
Total interest expense		28,670				14,706				57,392				67,487
Net interest income		294,617				247,957				809,754				723,339
Provision for credit losses		39,771				(7,454	)			50,986				(69,946	)
Net interest income after provision for credit losses		254,846				255,411				758,768				793,285
Non-interest income:
Service charges on deposit accounts:
NSF/Overdraft fees		4,808				4,080				13,257				10,647
All other service charges		7,089				7,097				20,963				20,507
Trust income		2,007				2,247				6,012				6,365
BOLI income:
Increase in cash surrender value		4,940				4,940				14,579				14,739
Death benefits		510				—				807				1,409
Loan service, maintenance and other fees		3,418				3,307				10,039				10,811
Gains on sales of other assets		3,182				463				10,957				8,632
Net gains on investment securities		321				—				762				—
Other		2,888				3,850				9,583				12,733
Total non-interest income		29,163				25,984				86,959				85,843
Non-interest expense:
Salaries and employee benefits		57,367				53,769				166,427				159,533
Net occupancy and equipment		18,244				17,161				52,474				49,797
Other operating expenses		40,080				39,467				113,807				110,840
Total non-interest expense		115,691				110,397				332,708				320,170
Income before taxes		168,318				170,998				513,019				558,958
Provision for income taxes		35,969				40,713				111,754				129,691
Net income		132,349				130,285				401,265				429,267
Earnings attributable to noncontrolling interest		—				5				(3	)			(27	)
Preferred stock dividends		4,047				—				12,574				—
Net income available to common stockholders	$	128,302			$	130,290			$	388,688			$	429,240
Basic earnings per common share	$	1.08			$	1.01			$	3.21			$	3.31
Diluted earnings per common share	$	1.08			$	1.00			$	3.20			$	3.30

Bank OZK
Consolidated Statements of Stockholders’ Equity
Unaudited

		Preferred Stock				Common Stock				Additional Paid-In Capital				Retained Earnings				Accumulated Other Comprehensive (Loss) Income				Non- Controlling Interest				Total
		(Dollars in thousands, except per share amounts)
Three months ended September 30, 2022:
Balances – June 30, 2022		$	338,980			$	1,190			$	1,817,650			$	2,563,130			$	(114,168	)		$	3,120			$	4,609,902
Net income			—				—				—				132,349				—				—				132,349
Earnings attributable to noncontrolling interest			—				—				—				—				—				—				—
Total other comprehensive loss			—				—				—				—				(113,505	)			—				(113,505	)
Preferred stock dividends, $0.28906 per share			—				—				—				(4,047	)			—				—				(4,047	)
Common stock dividends, $0.32 per share			—				—				—				(38,055	)			—				—				(38,055	)
Issuance of 5,414 shares of common stock for exercise of stock options			—				—				172				—				—				—				172
Repurchase and cancellation of 1,225,688 shares of common stock under share repurchase program			—				(12	)			(47,735	)			—				—				—				(47,747	)
Stock-based compensation expense			—				—				3,475				—				—				—				3,475
Forfeitures of 14,142 shares of unvested restricted common stock			—				—				—				—				—				—				—
Balances – September 30, 2022		$	338,980			$	1,178			$	1,773,562			$	2,653,377			$	(227,673	)		$	3,120			$	4,542,544
Nine months ended September 30, 2022:
Balances – December 31, 2021		$	338,980			$	1,254			$	2,093,702			$	2,378,466			$	23,841			$	3,117			$	4,839,360
Net income			—				—				—				401,265				—				—				401,265
Earnings attributable to noncontrolling interest			—				—				—				(3	)			—				3				—
Total other comprehensive loss			—				—				—				—				(251,514	)			—				(251,514	)
Preferred stock dividends, $0.89812 per share			—				—				—				(12,574	)			—				—				(12,574	)
Common stock dividends, $0.93 per share			—				—				—				(113,777	)			—				—				(113,777	)
Issuance of 74,521 shares of common stock for exercise of stock options			—				1				2,251				—				—				—				2,252
Issuance of 220,822 shares of unvested restricted common stock			—				2				(2	)			—				—				—				—
Repurchase and cancellation of 7,798,520 shares of common stock under share repurchase program			—				(77	)			(326,667	)			—				—				—				(326,744	)
Repurchase and cancellation of 112,974 shares of common stock withheld for tax pursuant to restricted stock vesting			—				(1	)			(5,398	)			—				—				—				(5,399	)
Stock-based compensation expense			—				—				9,675				—				—				—				9,675
Forfeitures of 65,992 shares of unvested restricted common stock			—				(1	)			1				—				—				—				—
Balances – September 30, 2022		$	338,980			$	1,178			$	1,773,562			$	2,653,377			$	(227,673	)		$	3,120			$	4,542,544

Bank OZK
Consolidated Statements of Stockholders’ Equity
Unaudited

		Common Stock				Additional Paid-In Capital				Retained Earnings				Accumulated Other Comprehensive Income				Non- Controlling Interest				Total
		(Dollars in thousands, except per share amounts)
Three months ended September 30, 2021:
Balances – June 30, 2021		$	1,297			$	2,277,138			$	2,173,114			$	50,127			$	3,117			$	4,504,793
Net income			—				—				130,285				—				—				130,285
Earnings attributable to noncontrolling interest			—				—				5				—				(5	)			—
Total other comprehensive loss			—				—				—				(9,421	)			—				(9,421	)
Common stock dividends, $0.285 per share			—				—				(37,170	)			—				—				(37,170	)
Issuance of 33,850 shares of common stock for exercise of stock options			1				1,085				—				—				—				1,086
Repurchase and cancellation of 888,567 shares of common stock under share repurchase program			(9	)			(36,990	)			—				—				—				(36,999	)
Stock-based compensation expense			—				3,778				—				—				—				3,778
Forfeitures of 47,604 shares of unvested restricted common stock			(1	)			1				—				—				—				—
Balances – September 30, 2021		$	1,288			$	2,245,012			$	2,266,234			$	40,706			$	3,112			$	4,556,352
Nine months ended September 30, 2021:
Balances – December 31, 2020		$	1,294			$	2,265,850			$	1,946,875			$	58,252			$	3,085			$	4,275,356
Net income			—				—				429,267				—				—				429,267
Earnings attributable to noncontrolling interest			—				—				(27	)			—				27				—
Total other comprehensive income			—				—				—				(17,546	)			—				(17,546	)
Common stock dividends, $0.8425 per share			—				—				(109,881	)			—				—				(109,881	)
Issuance of 176,250 shares of common stock for exercise of stock options			2				6,092				—				—				—				6,094
Issuance of 332,831 shares of unvested restricted common stock			3				(3	)			—				—				—				—
Repurchase and cancellation of 888,567 shares of common stock under share repurchase program			(9	)			(36,990	)			—				—				—				(36,999	)
Repurchase and cancellation of 55,893 shares of common stock withheld for taxes pursuant to restricted stock vesting			(1	)			(1,976	)			—				—				—				(1,977	)
Stock-based compensation expense			—				12,038				—				—				—				12,038
Forfeitures of 97,250 shares of unvested restricted common stock			(1	)			1				—				—				—				—
Balances – September 30, 2021		$	1,288			$	2,245,012			$	2,266,234			$	40,706			$	3,112			$	4,556,352

Bank OZK
Summary of Non-Interest Expense
Unaudited

		Three Months Ended September 30,								Nine Months Ended September 30,
		2022				2021				2022				2021
		(Dollars in thousands)
Salaries and employee benefits		$	57,367			$	53,769			$	166,427			$	159,533
Net occupancy and equipment			18,244				17,161				52,474				49,797
Other operating expenses:
Professional and outside services			8,059				7,084				23,602				21,134
Software and data processing			6,044				5,897				18,188				17,695
Advertising and public relations			3,448				719				5,810				1,621
Deposit insurance and assessments			2,650				2,655				6,900				9,060
Postage and supplies			2,035				1,530				5,240				4,718
Travel and meals			1,962				1,617				5,906				3,811
Telecommunication services			1,921				1,966				5,852				6,363
ATM expense			1,500				1,846				4,497				4,615
Loan collection and repossession expense			402				407				1,081				1,456
Writedowns of foreclosed and other assets			87				990				345				2,476
Amortization of intangibles			1,298				1,545				4,331				4,878
Amortization of CRA and tax credit investments			5,155				4,972				14,885				12,324
Other			5,519				8,239				17,170				20,689
Total non-interest expense		$	115,691			$	110,397			$	332,708			$	320,170

Bank OZK
Summary of Total Loans Outstanding
Unaudited

		September 30, 2022								December 31, 2021
		(Dollars in thousands)
Real estate:
Residential 1-4 family		$	968,369				5.0	%		$	887,024				4.8	%
Non-farm/non-residential			4,609,068				23.6				3,782,892				20.7
Construction/land development			7,367,128				37.8				8,246,674				45.0
Agricultural			231,730				1.2				247,727				1.4
Multifamily residential			1,341,639				6.9				934,845				5.1
Total real estate			14,517,934				74.5				14,099,162				77.0
Commercial and industrial			804,000				4.1				510,784				2.8
Consumer			2,427,361				12.4				2,185,429				11.9
Other			1,764,417				9.0				1,512,450				8.3
Total loans			19,513,712				100.0	%			18,307,825				100.0	%
Allowance for loan losses			(200,098	)							(217,380	)
Net loans		$	19,313,614							$	18,090,445

Bank OZK
Allowance for Credit Losses
Unaudited

		Allowance for Loan Losses				Reserve for Losses on Unfunded Loan Commitments				Total Allowance for Credit Losses
		(Dollars in thousands)
Three months ended September 30, 2022:
Balances – June 30, 2022		$	190,795			$	109,143			$	299,938
Net charge-offs			(4,074	)			—				(4,074	)
Provision for credit losses			13,377				26,394				39,771
Balances – September 30, 2022		$	200,098			$	135,537			$	335,635
Nine months ended September 30, 2022:
Balances – December 31, 2021		$	217,380			$	71,609			$	288,989
Net charge-offs			(4,340	)			—				(4,340	)
Provision for credit losses			(12,942	)			63,928				50,986
Balances – September 30, 2022		$	200,098			$	135,537			$	335,635
Three months ended September 30, 2021:
Balances – June 30, 2021		$	248,753			$	58,811			$	307,564
Net charge-offs			(1,312	)			—				(1,312	)
Provision for credit losses			(9,719	)			2,265				(7,454	)
Balances – September 30, 2021		$	237,722			$	61,076			$	298,798
Nine months ended September 30, 2021:
Balances – December 31, 2020		$	295,824			$	81,481			$	377,305
Net charge-offs			(8,561	)			—				(8,561	)
Provision for credit losses			(49,541	)			(20,405	)			(69,946	)
Balances – September 30, 2021		$	237,722			$	61,076			$	298,798

Bank OZK
Summary of Deposits – By Account Type
Unaudited

		September 30, 2022								December 31, 2021
		(Dollars in thousands)
Non-interest bearing		$	4,824,209				23.6	%		$	4,983,788				24.7	%
Interest bearing:
Transaction (NOW)			3,723,109				18.2				3,412,369				16.9
Savings and money market			6,040,529				29.6				5,833,358				28.9
Time deposits			5,814,029				28.6				5,979,619				29.5
Total deposits		$	20,401,876				100.0	%		$	20,209,134				100.0	%

Summary of Deposits – By Customer Type
Unaudited

		September 30, 2022								December 31, 2021
		(Dollars in thousands)
Non-interest bearing		$	4,824,209				23.6	%		$	4,983,788				24.7	%
Interest bearing:
Consumer and commercial:
Consumer – non-time			4,197,997				20.6				4,334,378				21.4
Consumer – time			4,127,269				20.2				4,318,742				21.4
Commercial – non-time			2,891,061				14.2				2,634,817				13.0
Commercial – time			557,130				2.7				905,347				4.5
Public funds			2,054,727				10.1				2,094,800				10.4
Brokered			1,322,297				6.5				452,137				2.2
Reciprocal			427,186				2.1				485,125				2.4
Total deposits		$	20,401,876				100.0	%		$	20,209,134				100.0	%

Bank OZK
Selected Consolidated Financial Data
Unaudited

		Three Months Ended September 30,												Nine Months Ended September 30,
		2022				2021				% Change				2022				2021				% Change
		(Dollars in thousands, except per share amounts)
Income statement data:
Net interest income		$	294,617			$	247,957				18.8	%		$	809,754			$	723,339				11.9	%
Provision for credit losses			39,771				(7,454	)		NM					50,986				(69,946	)		NM
Non-interest income			29,163				25,984				12.2				86,959				85,843				1.3
Non-interest expense			115,691				110,397				4.8				332,708				320,170				3.9
Net income			132,349				130,285				1.6				401,265				429,267				(6.5	)
Preferred stock dividends			4,047				—			NM					12,574				—			NM
Net income available to common stockholders			128,302				130,290				(1.5	)			388,688				429,240				(9.4	)
Pre-tax pre-provision net revenue (1)			208,089				163,544				27.2				564,005				489,012				15.3
Common share and per common share data:
Diluted earnings per common share		$	1.08			$	1.00				8.0	%		$	3.20			$	3.30				(3.0	)%
Basic earnings per common share			1.08				1.01				6.9				3.21				3.31				(3.0	)
Common stock dividends per share			0.32				0.285				12.3				0.93				0.8425				10.4
Book value per share			35.67				35.35				0.9				35.67				35.35				0.9
Tangible book value per common share (1)			30.02				30.14				(0.4	)			30.02				30.14				(0.4	)
Weighted-average diluted shares outstanding (thousands)			118,856				129,929				(8.5	)			121,539				130,063				(6.6	)
End of period shares outstanding (thousands)			117,762				128,818				(8.6	)			117,762				128,818				(8.6	)
Balance sheet data at period end:
Total assets		$	26,232,119			$	26,143,367				0.3	%		$	26,232,119			$	26,143,367				0.3	%
Total loans			19,513,712				18,305,303				6.6				19,513,712				18,305,303				6.6
Non-purchased loans			19,103,546				17,707,452				7.9				19,103,546				17,707,452				7.9
Purchased loans			410,166				597,851				(31.4	)			410,166				597,851				(31.4	)
Allowance for loan losses			200,098				237,722				(15.8	)			200,098				237,722				(15.8	)
Foreclosed assets			6,559				9,444				(30.5	)			6,559				9,444				(30.5	)
Investment securities − AFS			3,528,077				3,846,496				(8.3	)			3,528,077				3,846,496				(8.3	)
Goodwill and other intangible assets, net			664,732				670,580				(0.9	)			664,732				670,580				(0.9	)
Deposits			20,401,876				20,102,440				1.5				20,401,876				20,102,440				1.5
Other borrowings			456,466				750,217				(39.2	)			456,466				750,217				(39.2	)
Subordinated notes			346,741				345,927				0.2				346,741				345,927				0.2
Subordinated debentures			121,450				120,892				0.5				121,450				120,892				0.5
Unfunded balance of closed loans			20,091,101				12,385,369				62.2				20,091,101				12,385,369				62.2
Reserve for losses on unfunded loan commitments			135,537				61,076				121.9				135,537				61,076				121.9
Preferred stock			338,980				—			NM					338,980				—			NM
Total common stockholders’ equity (1)			4,200,444				4,553,240				(7.7	)			4,200,444				4,553,240				(7.7	)
Net unrealized (losses) gains on investment securities AFS included in stockholders’ equity			(227,673	)			40,706			NM					(227,673	)			40,706			NM
Loan (including purchased loans) to deposit ratio			95.65	%			91.06	%			5.0				95.65	%			91.06	%			5.0
Selected ratios:
Return on average assets (2)			1.97	%			1.98	%							1.99	%			2.15	%
Return on average common stockholders’ equity (1) (2)			11.85				11.41								11.97				12.98
Return on average tangible common stockholders’ equity (1) (2)			14.02				13.39								14.14				15.31
Average common equity to total average assets			16.61				17.38								16.60				16.57
Net interest margin – FTE (2)			5.03				4.16								4.60				3.99
Efficiency ratio			35.50				40.14								36.92				39.39
Net charge-offs to average non-purchased loans (2) (3)			0.09				0.04								0.07				0.07
Net charge-offs to average total loans (2)			0.09				0.03								0.03				0.06
Nonperforming loans to total loans (4)			0.14				0.20								0.14				0.20
Nonperforming assets to total assets (4)			0.13				0.17								0.13				0.17
Allowance for loan losses to total loans (5)			1.03				1.30								1.03				1.30
Other information:
Non-accrual loans (4)		$	24,633			$	34,920							$	24,633			$	34,920
Accruing loans − 90 days past due (4)			—				—								—				—
Troubled and restructured non-purchased loans − accruing (4)			1,610				1,253								1,610				1,253

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

NM – Not meaningful

Selected Consolidated Financial Data (continued)
Unaudited

		Three Months Ended
		September 30, 2022				June 30, 2022				% Change
	(Dollars in thousands, except per share amounts)
Income statement data:
Net interest income		$	294,617			$	265,793				10.8	%
Provision for credit losses			39,771				7,025				466.1
Non-interest income			29,163				26,320				10.8
Non-interest expense			115,691				109,300				5.8
Net income			132,349				136,413				(3.0	)
Preferred stock dividends			4,047				4,047				—
Net income available to common stockholders			128,302				132,358				(3.1	)
Pre-tax pre-provision net revenue (1)			208,089				182,813				13.8
Common share and per common share data:
Diluted earnings per common share		$	1.08			$	1.10				(1.8	)%
Basic earnings per common share			1.08				1.10				(1.8	)
Common stock dividends per share			0.32				0.31				3.2
Book value per share			35.67				35.87				(0.6	)
Tangible book value per common share (1)			30.02				30.27				(0.8	)
Weighted-average diluted shares outstanding (thousands)			118,856				120,827				(1.6	)
End of period shares outstanding (thousands)			117,762				118,996				(1.0	)
Balance sheet data at period end:
Total assets		$	26,232,119			$	25,919,965				1.2	%
Total loans			19,513,712				18,742,718				4.1
Non-purchased loans			19,103,546				18,297,638				4.4
Purchased loans			410,166				445,080				(7.8	)
Allowance for loan losses			200,098				190,795				4.9
Foreclosed assets			6,559				2,593				153.0
Investment securities − AFS			3,528,077				3,705,807				(4.8	)
Goodwill and other intangible assets, net			664,732				666,029				(0.2	)
Deposits			20,401,876				19,984,187				2.1
Other borrowings			456,466				505,221				(9.7	)
Subordinated notes			346,741				346,536				0.1
Subordinated debentures			121,450				121,310				0.1
Unfunded balance of closed loans			20,091,101				17,369,767				15.7
Reserve for losses on unfunded loan commitments			135,537				109,143				24.2
Preferred stock			338,980				338,980				—
Total common stockholders’ equity (1)			4,200,444				4,267,802				(1.6	)
Net unrealized losses on investment securities AFS included in stockholders’ equity			(227,673	)			(114,168	)			99.4
Loan (including purchased loans) to deposit ratio			95.65	%			93.79	%			2.0
Selected ratios:
Return on average assets (2)			1.97	%			2.02	%
Return on average common stockholders’ equity (1) (2)			11.85				12.40
Return on average tangible common stockholders’ equity (1) (2)			14.02				14.69
Average common equity to average assets			16.61				16.32
Net interest margin – FTE (2)			5.03				4.52
Efficiency ratio			35.50				37.25
Net charge-offs to average non-purchased loans (2) (3)			0.09				0.03
Net charge-offs to average total loans (2)			0.09				0.01
Nonperforming loans to total loans (4)			0.14				0.16
Nonperforming assets to total assets (4)			0.13				0.12
Allowance for loan losses to total loans (5)			1.03				1.02
Other information:
Non-accrual loans (4)		$	24,633			$	28,171
Accruing loans − 90 days past due (4)			—				—
Troubled and restructured non-purchased loans − accruing (4)			1,610				1,033

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

Bank OZK
Supplemental Quarterly Financial Data
Unaudited

		12/31/20				3/31/21				6/30/21				9/30/21				12/31/21				03/31/22				06/30/22				09/30/22
	(Dollars in thousands)
Earnings Summary:
Net interest income		$	237,600			$	234,636			$	240,746			$	247,957			$	266,381			$	249,343			$	265,793			$	294,617
Federal tax (FTE) adjustment			1,533				1,275				1,355				1,106				1,009				1,017				1,300				2,151
Net interest income (FTE)			239,133				235,911				242,101				249,063				267,390				250,360				267,093				296,768
Provision for credit losses			(6,750	)			31,559				30,932				7,454				7,992				(4,190	)			(7,025	)			(39,771	)
Non-interest income			28,661				32,117				27,742				25,984				29,695				31,475				26,320				29,163
Non-interest expense			(103,394	)			(106,059	)			(103,711	)			(110,397	)			(110,106	)			(107,715	)			(109,300	)			(115,691	)
Pretax income (FTE)			157,650				193,528				197,064				172,104				194,971				169,930				177,088				170,469
FTE adjustment			(1,533	)			(1,275	)			(1,355	)			(1,106	)			(1,009	)			(1,017	)			(1,300	)			(2,151	)
Provision for income taxes			(35,607	)			(43,818	)			(45,161	)			(40,713	)			(44,197	)			(36,410	)			(39,375	)			(35,969	)
Noncontrolling interest			3				(19	)			(13	)			5				(5	)			5				(8	)			—
Preferred stock dividend			—				—				—				—				—				(4,480	)			(4,047	)			(4,047	)
Net income available to common stockholders		$	120,513			$	148,416			$	150,535			$	130,290			$	149,760			$	128,028			$	132,358			$	128,302
Earnings per common share – diluted		$	0.93			$	1.14			$	1.16			$	1.00			$	1.17			$	1.02			$	1.10			$	1.08
PPNR		$	162,867			$	160,694			$	164,777			$	163,544			$	185,970			$	173,103			$	182,813			$	208,089
Non-interest Income:
Service charges on deposit accounts:
NSF/Overdraft fees		$	4,024			$	3,323			$	3,244			$	4,080			$	4,315			$	4,201			$	4,247			$	4,808
All other service charges			5,959				6,342				7,067				7,097				7,149				6,690				7,184				7,089
Trust income			1,909				2,206				1,911				2,247				2,141				2,094				1,911				2,007
BOLI income:
Increase in cash surrender value			5,034				4,881				4,919				4,940				4,901				4,793				4,846				4,940
Death benefits			—				1,409				—				—				618				297				—				510
Loan service, maintenance and other fees			3,797				3,551				3,953				3,307				3,148				3,018				3,603				3,418
Gains on sales of other assets			5,189				5,828				2,341				463				1,330				6,992				784				3,182
Net gains (losses) on investment securities			—				—				—				—				504				(90	)			531				321
Other			2,749				4,577				4,307				3,850				5,589				3,480				3,214				2,888
Total non-interest income		$	28,661			$	32,117			$	27,742			$	25,984			$	29,695			$	31,475			$	26,320			$	29,163
Non-interest Expense:
Salaries and employee benefits		$	53,832			$	53,645			$	52,119			$	53,769			$	55,034			$	54,648			$	54,412			$	57,367
Net occupancy and equipment			15,617				16,468				16,168				17,161				17,004				17,215				17,014				18,244
Other operating expenses			33,945				35,946				35,424				39,467				38,068				35,852				37,874				40,080
Total non-interest expense		$	103,394			$	106,059			$	103,711			$	110,397			$	110,106			$	107,715			$	109,300			$	115,691
Balance Sheet Data:
Total assets		$	27,162,596			$	27,276,892			$	26,605,938			$	26,143,367			$	26,530,430			$	26,562,353			$	25,919,965			$	26,232,119
Non-purchased loans			18,401,495				17,979,435				17,611,848				17,707,452				17,791,610				18,449,723				18,297,638				19,103,546
Purchased loans			807,673				735,630				659,822				597,851				516,215				481,299				445,080				410,166
Investment securities – AFS			3,405,351				4,162,479				4,693,396				3,846,496				3,916,733				3,728,284				3,705,807				3,528,077
Deposits			21,450,356				21,296,442				20,706,777				20,102,440				20,209,134				20,329,662				19,984,187				20,401,876
Unfunded balance of closed loans			11,847,117				11,780,099				11,709,818				12,385,369				13,619,578				14,954,367				17,369,767				20,091,101
Preferred stock			—				—				—				—				338,980				338,980				338,980				338,980
Total stockholders' equity before noncontrolling interest			4,272,271				4,383,205				4,501,676				4,553,240				4,836,243				4,690,057				4,606,782				4,539,424

Bank OZK
Supplemental Quarterly Financial Data (Continued)
Unaudited

		12/31/20				3/31/21				6/30/21				9/30/21				12/31/21				03/31/22				06/30/2022				09/30/22
	(Dollars in thousands)
Allowance for Credit Losses:
Balance at beginning of period		$	377,273			$	377,305			$	342,307			$	307,564			$	298,798			$	288,989			$	293,540			$	299,938
Net charge-offs			(6,718	)			(3,439	)			(3,811	)			(1,312	)			(1,817	)			361				(627	)			(4,074	)
Provision for credit losses			6,750				(31,559	)			(30,932	)			(7,454	)			(7,992	)			4,190				7,025				39,771
Balance at end of period		$	377,305			$	342,307			$	307,564			$	298,798			$	288,989			$	293,540			$	299,938			$	335,635
Allowance for loan losses		$	295,824			$	268,077			$	248,753			$	237,722			$	217,380			$	204,213			$	190,795			$	200,098
Reserve for losses on unfunded loan commitments			81,481				74,230				58,811				61,076				71,609				89,327				109,143				135,537
Total allowance for credit losses		$	377,305			$	342,307			$	307,564			$	298,798			$	288,989			$	293,540			$	299,938			$	335,635
Selected Ratios:
Net interest margin – FTE (1)			3.88	%			3.86	%			3.95	%			4.16	%			4.41	%			4.24	%			4.52	%			5.03	%
Efficiency ratio			38.61				39.57				38.43				40.14				37.06				38.22				37.25				35.50
Net charge-offs to average non-purchased loans (1) (2)			0.14				0.08				0.09				0.04				0.05				0.08				0.03				0.09
Net charge-offs to average total loans (1)			0.14				0.07				0.08				0.03				0.04				(0.01	)			0.01				0.09
Nonperforming loans to total loans (3)			0.25				0.25				0.22				0.20				0.19				0.21				0.16				0.14
Nonperforming assets to total assets (3)			0.21				0.19				0.18				0.17				0.15				0.16				0.12				0.13
Allowance for loan losses to total loans (4)			1.54				1.43				1.36				1.30				1.19				1.08				1.02				1.03
Loans past due 30 days or more, including past due non-accrual loans, to total loans (3)			0.16				0.13				0.10				0.13				0.15				0.14				0.11				0.11

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

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

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

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

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

		Three Months Ended September 30,																								Nine Months Ended September 30,
		2022												2021												2022												2021
		Average Balance				Income/ Expense				Yield/ Rate				Average Balance				Income/ Expense				Yield/ Rate				Average Balance				Income/ Expense				Yield/ Rate				Average Balance				Income/ Expense				Yield/ Rate
		(Dollars in thousands)
ASSETS
Interest earning assets:
Interest earning deposits and federal funds sold		$	699,489			$	3,690				2.09	%		$	1,287,890			$	523				0.16	%		$	1,023,707			$	6,155				0.80	%		$	1,792,191			$	1,556				0.12	%
Investment securities:
Taxable			2,809,479				10,269				1.45				3,509,465				9,236				1.04				3,080,645				31,246				1.36				3,150,732				26,786				1.14
Tax-exempt – FTE			907,955				9,020				3.94				740,809				4,172				2.23				706,628				17,889				3.38				955,822				13,747				1.92
Non-purchased loans – FTE			18,544,681				295,311				6.32				17,559,654				238,488				5.39				18,413,106				792,025				5.75				17,761,807				717,488				5.40
Purchased loans			429,312				7,148				6.61				627,436				11,350				7.18				464,205				24,300				7.00				699,678				34,985				6.69
Total earning assets – FTE			23,390,916				325,438				5.52				23,725,254				263,769				4.41				23,688,291				871,615				4.92				24,360,230				794,562				4.36
Non-interest earning assets			2,474,862												2,348,740												2,460,424												2,324,716
Total assets		$	25,865,778											$	26,073,994											$	26,148,715											$	26,684,946
LIABILITIES AND STOCKHOLDERS’ EQUITY
Interest bearing liabilities:
Deposits:
Savings and interest bearing transaction		$	9,614,806			$	13,639				0.56	%		$	8,891,042			$	2,885				0.13	%		$	9,611,716			$	21,801				0.30	%		$	8,656,762			$	9,840				0.15	%
Time deposits			5,232,727				8,358				0.63				6,920,513				9,441				0.54				5,464,267				19,542				0.48				7,964,704				45,068				0.76
Total interest bearing deposits			14,847,533				21,997				0.59				15,811,555				12,326				0.31				15,075,983				41,343				0.37				16,621,466				54,908				0.44
Other borrowings			517,161				2,460				1.89				757,786				1,017				0.53				647,083				4,500				0.93				757,141				3,010				0.53
Subordinated notes			346,642				2,631				3.01				56,468				429				3.01				346,433				7,808				3.01				167,636				6,755				5.39
Subordinated debentures			121,382				1,582				5.17				120,822				934				3.07				121,239				3,741				4.13				120,681				2,814				3.12
Total interest bearing liabilities			15,832,718				28,670				0.72				16,746,631				14,706			0.35					16,190,738				57,392				0.47				17,666,924				67,487			0.51
Non-interest bearing liabilities:
Non-interest bearing deposits			4,998,392												4,523,521												4,915,023												4,289,589
Other non-interest bearing liabilities			395,671												269,733												359,327												304,086
Total liabilities			21,226,781												21,539,885												21,465,088												22,260,599
Total stockholders’ equity before noncontrolling interest			4,635,887												4,530,995												4,680,513												4,421,240
Noncontrolling interest			3,110												3,114												3,114												3,107
Total liabilities and stockholders’ equity		$	25,865,778											$	26,073,994											$	26,148,715											$	26,684,946
Net interest income – FTE						$	296,768											$	249,063											$	814,223											$	727,075
Net interest margin – FTE											5.03	%											4.16	%											4.60	%											3.99	%
Core spread (1)											5.73	%											5.08	%											5.38	%											4.96	%

⁽¹⁾   Core spread is the difference between the yield on the Bank’s non-purchased loans-FTE and the rate on its interest bearing deposits.

Bank OZK
Reconciliation of Non-GAAP Financial Measures

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

	Three Months Ended												Nine Months Ended
	September 30, 2022				September 30, 2021				June 30, 2022				September 30, 2022				September 30, 2021
	(Dollars in thousands)
Net income available to common stockholders	$	128,302			$	130,290			$	132,358			$	388,688			$	429,240
Average stockholders’ equity before noncontrolling interest	$	4,635,887			$	4,530,995			$	4,619,033			$	4,680,513			$	4,421,240
Less average preferred stock		(338,980	)			—				(338,980	)			(338,980	)			—
Total average common stockholders’ equity		4,296,907				4,530,995				4,280,053				4,341,533				4,421,240
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		(4,747	)			(10,617	)			(6,084	)			(6,124	)			(12,195	)
Total average intangibles		(665,536	)			(671,406	)			(666,873	)			(666,913	)			(672,984	)
Average tangible common stockholders’ equity	$	3,631,371			$	3,859,589			$	3,613,180			$	3,674,620			$	3,748,256
Return on average common stockholders’ equity (1)		11.85	%			11.41	%			12.40	%			11.97	%			12.98	%
Return on average tangible common stockholders’ equity (1)		14.02	%			13.39	%			14.69	%			14.14	%			15.31	%

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

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

		September 30,								June 30,
		2022				2021				2022
		(In thousands, except per share amounts)
Total stockholders’ equity before noncontrolling interest		$	4,539,424			$	4,553,240			$	4,606,782
Less preferred stock			(338,980	)			—				(338,980	)
Total common stockholders' equity			4,200,444				4,553,240				4,267,802
Less intangible assets:
Goodwill			(660,789	)			(660,789	)			(660,789	)
Core deposit and other intangible assets, net of accumulated amortization			(3,943	)			(9,791	)			(5,240	)
Total intangibles			(664,732	)			(670,580	)			(666,029	)
Total tangible common stockholders’ equity		$	3,535,712			$	3,882,660			$	3,601,773
Shares of common stock outstanding			117,762				128,818				118,996
Book value per common share		$	35.67			$	35.35			$	35.87
Tangible book value per common share		$	30.02			$	30.14			$	30.27

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

		September 30,
		2022				2021
		(Dollars in thousands)
Total stockholders’ equity before noncontrolling interest		$	4,539,424			$	4,553,240
Less preferred stock			(338,980	)			—
Total common stockholders’ equity			4,200,444				4,553,240
Less intangible assets:
Goodwill			(660,789	)			(660,789	)
Core deposit and other intangible assets, net of accumulated amortization			(3,943	)			(9,791	)
Total intangibles			(664,732	)			(670,580	)
Total tangible common stockholders’ equity		$	3,535,712			$	3,882,660
Total assets		$	26,232,119			$	26,143,367
Less intangible assets:
Goodwill			(660,789	)			(660,789	)
Core deposit and other intangible assets, net of accumulated amortization			(3,943	)			(9,791	)
Total intangibles			(664,732	)			(670,580	)
Total tangible assets		$	25,567,387			$	25,472,787
Ratio of total common stockholders’ equity to total assets			16.01	%			17.42	%
Ratio of total tangible common stockholders’ equity to total tangible assets			13.83	%			15.24	%

Calculation of Pre-Tax Pre-Provision Net Revenue
Unaudited

		Three Months Ended												Nine Months Ended
		September 30, 2022				September 30, 2021				June 30, 2022				September 30, 2022				September 30, 2021
		(Dollars in thousands)
Income before taxes		$	168,318			$	170,998			$	175,788			$	513,019			$	558,958
Provision for credit losses			39,771				(7,454	)			7,025				50,986				(69,946	)
Pre-tax pre-provision net revenue		$	208,089			$	163,544			$	182,813			$	564,005			$	489,012

Investor Contact:		Jay Staley (501) 906-7842
Media Contact:		Michelle Rossow (501) 906-3922

        

FAQ

What were Bank OZK's earnings for Q3 2022?

Bank OZK reported a net income of $128.3 million for Q3 2022.

How did diluted earnings per share change in Q3 2022?

Diluted earnings per share increased by 8.0% to $1.08 in Q3 2022.

What is the provision for credit losses for Q3 2022?

The provision for credit losses was $39.8 million for Q3 2022.

What was the growth in total loans for Bank OZK?

Total loans grew by 6.6% to $19.51 billion year-over-year.

How much stock did Bank OZK repurchase in Q3 2022?

Bank OZK repurchased approximately 1.23 million shares for $47.7 million in Q3 2022.