OZK Bank OZK

Bank OZK (the “Bank”) (Nasdaq: OZK) today announced that net income available to common stockholders for the second quarter of 2024 was a record $173.5 million, a 3.3% increase from $167.9 million for the second quarter of 2023. For the first six months of 2024, net income available to common stockholders was $345.0 million, a 3.4% increase from $333.8 million for the first six months of 2023.

Diluted earnings per common share for the second quarter of 2024 were a record $1.52, a 3.4% increase from $1.47 for the second quarter of 2023. For the first six months of 2024, diluted earnings per common share were $3.03, a 5.2% increase from $2.88 for the first six months of 2023.

Pre-tax pre-provision net revenue (“PPNR”) was a record $279.3 million for the second quarter of 2024, a 7.7% increase from $259.5 million for the second quarter of 2023. For the first six months of 2024, PPNR was $552.0 million, a 9.1% increase from the $505.9 million for the first six months of 2023. The calculation of PPNR and the reconciliation to generally accepted accounting principles (“GAAP”) are included in the schedules accompanying this release.

Provision for credit losses was $49.0 million for the second quarter of 2024 compared to $41.8 million for the second quarter of 2023, while our net charge-offs were only $11.8 million and $8.7 million, respectively, for those quarters. For the first six months of 2024, provision for credit losses was $91.9 million compared to $77.6 million for the first six months of 2023, while our net charge-offs were only $19.1 million and $16.1 million, respectively, for those six-month periods. The Bank’s total allowance for credit losses (“ACL”) was $574.1 million at June 30, 2024, an increase of $147.3 million compared to $426.8 million at June 30, 2023.

The Bank’s annualized returns on average assets, average common stockholders’ equity and average tangible common stockholders’ equity for the second quarter of 2024 were 1.92%, 13.98% and 16.11%, respectively, compared to 2.27%, 15.14% and 17.78%, respectively, for the second quarter of 2023. For the first six months of 2024, the Bank’s annualized returns on average assets, average common stockholders’ equity and average tangible common stockholders’ equity were 1.94%, 14.07%, and 16.24%, respectively, compared to 2.34%, 15.19%, and 17.86%, respectively, for the first six months of 2023. The calculation of the Bank’s returns on average common stockholders’ equity and average tangible common stockholders’ equity and the reconciliations to GAAP are included in the schedules accompanying this release.

George Gleason, Chairman and Chief Executive Officer, stated, “We are very pleased with our record results for the quarter just ended giving us our seventh consecutive quarter of record net income and earnings per share and eighth consecutive quarter of record net interest income. These record results have allowed us to consistently increase dividends, significantly grow capital and opportunistically repurchase shares, all while almost doubling our allowance for credit losses.”

KEY BALANCE SHEET METRICS

Total loans were $28.67 billion at June 30, 2024, a 21.5% increase from $23.61 billion at June 30, 2023. Deposits were $29.94 billion at June 30, 2024, a 24.9% increase from $23.98 billion at June 30, 2023. Total assets were $36.84 billion at June 30, 2024, a 19.7% increase from $30.76 billion at June 30, 2023.

Common stockholders’ equity was $5.07 billion at June 30, 2024, a 13.4% increase from $4.47 billion at June 30, 2023. Tangible common stockholders’ equity was $4.41 billion at June 30, 2024, a 15.7% increase from $3.81 billion at June 30, 2023.

Book value per common share was $44.67 at June 30, 2024, a $5.16 increase from $39.51 at June 30, 2023. Tangible book value per common share was $38.85 at June 30, 2024, a $5.18 increase from $33.67 at June 30, 2023.

The Bank’s strong profitability has allowed it to maintain strong capital ratios even as it has achieved significant growth. The Bank’s ratio of total common stockholders’ equity to total assets was 13.76% at June 30, 2024, compared to 14.53% at June 30, 2023. The Bank’s ratio of total tangible common stockholders’ equity to total tangible assets was 12.19% at June 30, 2024, compared to 12.66% at June 30, 2023. The calculations of the Bank’s total common stockholders’ equity, tangible common stockholders’ equity, ratio of total tangible common stockholders’ equity to total tangible assets and tangible book value per common share, and the reconciliations to GAAP, are included in the schedules accompanying this release.

The Bank’s Board recently approved a stock repurchase program authorizing the purchase of up to $200 million of outstanding common stock through expiration of the program on July 1, 2025. In evaluating stock repurchases, management will consider a variety of factors including the Bank’s stock price, expected growth, capital position, alternative uses of capital, liquidity, financial performance, current and expected macroeconomic environment, regulatory requirements and other factors.

ASSET QUALITY

The Bank’s various asset quality ratios for the quarter just ended continued to perform well compared to the industry, notwithstanding the challenging macroeconomic environment. This reflects the Bank’s long-term focus on asset quality. The Bank’s ratio of nonperforming non-purchased loans to total loans (excluding purchased loans) was 0.28% at June 30, 2024, compared to 0.15% as of June 30, 2023. The Bank’s ratio of nonperforming assets to total assets (excluding purchased loans, except for their inclusion in total assets) was 0.41% at June 30, 2024, compared to 0.32% as of June 30, 2023. The Bank’s annualized ratio of net charge-offs to average total loans was 0.17% for the quarter and 0.14% for the six months ended June 30, 2024, compared to 0.15% for both the second quarter and six months ended June 30, 2023.

MANAGEMENT’S COMMENTS, CONFERENCE CALL, TRANSCRIPT AND FILINGS

In connection with this release, the Bank released management’s comments on its quarterly results, which are available at http://ir.ozk.com. This release should be read in conjunction with management’s comments on the quarterly results.

Management will conduct a conference call to take questions at 10:00 a.m. CT (11:00 a.m. ET) on Thursday, July 18, 2024. Interested parties may access the conference call live via webcast on the Bank’s investor relations website at https://ir.ozk.com/news/event-calendar, or may participate via telephone by registering using this online form. Upon registration, all telephone participants will receive the dial-in number along with a unique PIN number that can be used to access the call. A replay of the conference call webcast will be archived on the Bank’s website for at least 30 days.

The Bank files annual, quarterly and current reports, proxy materials, and other information required by the Securities Exchange Act of 1934 with the Federal Deposit Insurance Corporation (“FDIC”), copies of which are available electronically at the FDIC’s website at https://efr.fdic.gov/fcxweb/efr/index.html and are also available on the Bank’s investor relations website at ir.ozk.com. To receive automated email alerts for these materials please visit https://ir.ozk.com/other/email-alerts to sign up.

NON-GAAP FINANCIAL MEASURES

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

FORWARD-LOOKING STATEMENTS

This press release and other communications by the Bank include certain “forward-looking statements” regarding the Bank’s plans, expectations, thoughts, beliefs, estimates, goals and outlook for the future that are intended to be covered by the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on management’s expectations as well as certain assumptions and estimates made by, and information available to, management at the time. Those statements are not guarantees of future results or performance and are subject to certain known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those expressed in, or implied by, such forward-looking statements. These risks, uncertainties and other factors include, but are not limited to: potential delays or other problems in implementing the Bank’s growth, expansion and acquisition strategies, including obtaining regulatory or other approvals, delays in acquiring satisfactory sites, obtaining permits and designing, constructing and opening new offices, relocating, selling or closing existing offices, or integrating any acquisitions; the availability of and access to capital; possible downgrades in the Bank’s credit ratings or outlook which could increase the costs of or decrease the availability of funding from capital markets; the ability to attract new or retain existing deposits or to retain or grow loans, including growth from unfunded closed loans; the ability to generate future revenue growth or to control future growth in non-interest expense; interest rate fluctuations, including changes in the yield curve between short-term and long-term interest rates or changes in the relative relationships of various interest rate indices; competitive factors and pricing pressures, including their effect on the Bank’s net interest margin or core spread; general economic, unemployment, credit market and real estate market conditions, and the effect of such conditions on the creditworthiness of borrowers, collateral values, the value of investment securities and asset recovery values; conditions within the banking industry; recently enacted and potential new laws and regulatory requirements or changes to existing laws and regulatory requirements, including changes affecting oversight of the financial services industry, changes intended to manage or mitigate climate and related environmental risks or changes in the interpretation and enforcement of such laws and requirements, changes as a result of the U.S. presidential and congressional elections, and the costs and expenses to comply with new and/or existing legislation and regulatory requirements; uncertainty regarding changes in U.S. government monetary and fiscal policy; the impact of any U.S. federal government shutdown or budgetary crisis; FDIC special assessments or changes to regular assessments; the ability to keep pace with technological changes, including changes regarding artificial intelligence and maintaining cybersecurity; the impact of any failure in, or breach of, our operational or security systems or infrastructure, or those of third parties with whom we do business or others, including as a result of cyberattacks or an increase in the incidence or severity of fraud, illegal payments, security breaches or other illegal acts impacting the Bank, its customers or others; natural disasters; acts of war or terrorism; the potential impact of continuing inflationary pressures; the potential impact of supply chain disruptions; national or international political instability or military conflict, including the conflict in the Middle East and the ongoing war in Ukraine; competition for and costs of recruiting and retaining qualified personnel; impairment of our goodwill; adoption of new accounting standards, or changes in existing standards; and adverse results (including costs, fines, reputational harm and/or other negative effects) from current or future litigation, regulatory examinations or other legal and/or regulatory actions or rulings as well as other factors identified in this communication or as detailed from time to time in our public filings, including those factors described in the disclosures under the headings “Forward-Looking Information” and “Item 1A. Risk Factors” in our most recent Annual Report on Form 10-K for the year ended December 31, 2023 and our quarterly reports on Form 10-Q. Should one or more of the foregoing risks materialize, or should underlying assumptions prove incorrect, actual results or outcomes may vary materially from those described in, or implied by, such forward-looking statements. The Bank disclaims any obligation to update or revise any forward-looking statements based on the occurrence of future events, the receipt of new information or otherwise.

GENERAL INFORMATION

Bank OZK (Nasdaq: OZK) is a regional bank providing innovative financial solutions delivered by expert bankers with a relentless pursuit of excellence. Established in 1903, Bank OZK conducts banking operations in approximately 240 offices in nine states including Arkansas, Georgia, Florida, North Carolina, Tennessee, Texas, New York, California and Mississippi and had $36.84 billion in total assets as of June 30, 2024. For more information, visit www.ozk.com.

Bank OZKConsolidated Balance SheetsUnaudited
	June 30, 2024				December 31, 2023
	(Dollars in thousands)
ASSETS
Cash and cash equivalents	$	2,568,813			$	2,149,529
Investment securities – available for sale (“AFS”)		2,981,929				3,244,371
Federal Home Loan Bank of Dallas (“FHLB”) and other bankers’ bank stocks		24,453				50,400
Non-purchased loans		28,455,342				26,195,030
Purchased loans		218,343				264,045
Allowance for loan losses		(407,079	)			(339,394	)
Net Loans		28,266,606				26,119,681
Premises and equipment, net		702,505				676,821
Foreclosed assets		71,023				61,720
Accrued interest receivable		177,403				170,110
Bank owned life insurance (“BOLI”)		819,602				808,490
Goodwill		660,789				660,789
Other, net		563,050				295,546
Total assets	$	36,836,173			$	34,237,457
LIABILITIES AND STOCKHOLDERS’ EQUITY
Deposits:
Demand non-interest bearing	$	4,045,666			$	4,095,874
Savings and interest bearing transaction		9,209,732				9,074,296
Time		16,688,265				14,234,973
Total deposits		29,943,663				27,405,143
Other borrowings		400,943				805,318
Subordinated notes		348,164				347,761
Subordinated debentures		121,652				121,652
Reserve for losses on unfunded credit commitments		167,022				161,834
Accrued interest payable and other liabilities		445,944				255,773
Total liabilities	$	31,427,388			$	29,097,481
Commitments and contingencies
Stockholders’ equity:
Preferred Stock: $0.01 par value; 100,000,000 shares authorized; 14,000,000 issued and outstanding at June 30, 2024 and December 31, 2023		338,980				338,980
Common Stock: $0.01 par value; 300,000,000 shares authorized; 113,465,238 and 113,148,672 shares issued and outstanding at June 30, 2024 and December 31, 2023, respectively		1,135				1,131
Additional paid-in capital		1,615,101				1,612,446
Retained earnings		3,553,523				3,283,818
Accumulated other comprehensive loss		(100,939	)			(97,374	)
Total stockholders’ equity before noncontrolling interest		5,407,800				5,139,001
Noncontrolling interest		985				975
Total stockholders’ equity		5,408,785				5,139,976
Total liabilities and stockholders’ equity	$	36,836,173			$	34,237,457

Bank OZKConsolidated Statements of IncomeUnaudited
	Three Months Ended June 30,								Six Months Ended June 30,
		2024				2023				2024				2023
	(Dollars in thousands, except per share amounts)
Interest income:
Non-purchased loans	$	616,648			$	472,524			$	1,203,629			$	887,420
Purchased loans		4,644				5,322				9,604				11,840
Investment securities:
Taxable		8,793				9,704				18,126				19,875
Tax-exempt		11,147				9,489				22,321				18,753
Deposits with banks		26,604				11,407				51,210				19,277
Total interest income		667,836				508,446				1,304,890				957,165
Interest expense:
Deposits		270,804				136,122				525,126				229,754
Other borrowings		3,964				10,591				4,715				16,013
Subordinated notes		2,603				2,603				5,177				5,177
Subordinated debentures		2,471				2,306				4,944				4,545
Total interest expense		279,842				151,622				539,962				255,489
Net interest income		387,994				356,824				764,928				701,676
Provision for credit losses		49,012				41,774				91,935				77,602
Net interest income after provision for credit losses		338,982				315,050				672,993				624,074
Non-interest income:
Service charges on deposit accounts:
NSF fees		—				1,004				—				1,995
Overdraft fees		3,364				3,369				6,790				6,656
All other service charges		7,558				7,187				14,397				13,688
Trust income		2,082				2,113				4,406				4,146
BOLI income		5,606				5,069				11,112				10,043
Loan service, maintenance and other fees		6,481				4,095				12,824				8,170
Gains on sales of other assets		1,073				5,033				1,532				5,377
Net gains on investment securities		125				620				535				2,336
Other		2,493				3,497				6,271				7,384
Total non-interest income		28,782				31,987				57,867				59,795
Non-interest expense:
Salaries and employee benefits		73,409				65,219				142,973				128,468
Net occupancy and equipment		18,421				19,476				36,395				37,560
Other operating expenses		45,621				44,660				91,396				89,543
Total non-interest expense		137,451				129,355				270,764				255,571
Income before taxes		230,313				217,682				460,096				428,298
Provision for income taxes		52,778				45,717				107,005				86,420
Net income		177,535				171,965				353,091				341,878
Earnings attributable to noncontrolling interest		8				(1	)			(10	)			(13	)
Preferred stock dividends		4,047				4,047				8,094				8,094
Net income available to common stockholders	$	173,496			$	167,917			$	344,987			$	333,771
Basic earnings per common share	$	1.53			$	1.47			$	3.04			$	2.89
Diluted earnings per common share	$	1.52			$	1.47			$	3.03			$	2.88

Bank OZKConsolidated Statements of Stockholders’ EquityUnaudited
	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 June 30, 2024:
Balances – March 31, 2024	$	338,980			$	1,134			$	1,609,268			$	3,424,672			$	(107,207	)		$	993			$	5,267,840
Net income		—				—				—				177,535				—				—				177,535
Earnings attributable to noncontrolling interest		—				—				—				8				—				(8	)			—
Total other comprehensive income		—				—				—				—				6,268				—				6,268
Preferred stock dividends, $0.28906 per share		—				—				—				(4,047	)			—				—				(4,047	)
Common stock dividends, $0.39 per share		—				—				—				(44,645	)			—				—				(44,645	)
Issuance of 33,636 shares of common stock pursuant to stock-based compensation plans		—				1				232				—				—				—				233
Stock-based compensation expense		—				—				5,601				—				—				—				5,601
Forfeitures of 3,214 shares of unvested restricted common stock		—				—				—				—				—				—				—
Balances – June 30, 2024	$	338,980			$	1,135			$	1,615,101			$	3,553,523			$	(100,939	)		$	985			$	5,408,785
Six months ended June 30, 2024:
Balances – December 31, 2023	$	338,980			$	1,131			$	1,612,446			$	3,283,818			$	(97,374	)		$	975			$	5,139,976
Cumulative effect of change in accounting principle		—				—				—				12,690				—				—				12,690
Balances – January 1, 2024		338,980				1,131				1,612,446				3,296,508				(97,374	)			975				5,152,666
Net income		—				—				—				353,091				—				—				353,091
Earnings attributable to noncontrolling interest		—				—				—				(10	)			—				10				—
Total other comprehensive loss		—				—				—				—				(3,565	)			—				(3,565	)
Preferred stock dividends, $0.57812 per share		—				—				—				(8,094	)			—				—				(8,094	)
Common stock dividends, $0.77 per share		—				—				—				(87,972	)			—				—				(87,972	)
Issuance of 518,454 shares of common stock pursuant to stock-based compensation plans		—				6				411				—				—				—				417
Repurchase and cancellation of 184,415 shares of common stock withheld for tax pursuant to stock-based compensation plans		—				(2	)			(8,008	)			—				—				—				(8,010	)
Stock-based compensation expense		—				—				10,252				—				—				—				10,252
Forfeitures of 17,473 shares of unvested restricted common stock		—				—				—				—				—				—				—
Balances – June 30, 2024	$	338,980			$	1,135			$	1,615,101			$	3,553,523			$	(100,939	)		$	985			$	5,408,785

Bank OZKConsolidated Statements of Stockholders’ EquityUnaudited
	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 June 30, 2023:
Balances – March 31, 2023	$	338,980			$	1,151			$	1,664,569			$	2,898,904			$	(141,677	)		$	1,371			$	4,763,298
Net income		—				—				—				171,965				—				—				171,965
Earnings attributable to noncontrolling interest		—				—				—				(1	)			—				1				—
Total other comprehensive income (loss)		—				—				—				—				(17,754	)			—				(17,754	)
Preferred stock dividends, $0.28906 per share		—				—				—				(4,047	)			—								(4,047	)
Common stock dividends, $0.35 per share		—				—				—				(40,574	)			—				—				(40,574	)
Issuance of 30,148 shares of common stock pursuant to stock-based compensation plans		—				—				23				—				—				—				23
Repurchase and cancellation of 1,956,101 shares of common stock under share repurchase program, including excise tax		—				(20	)			(66,106	)			—				—				—				(66,126	)
Stock-based compensation expense		—				—				4,478				—				—				—				4,478
Forfeitures of 8,706 shares of unvested restricted common stock		—				—				—				—				—				—				—
Balances – June 30, 2023	$	338,980			$	1,131			$	1,602,964			$	3,026,247			$	(159,431	)		$	1,372			$	4,811,263
Six months ended June 30, 2023:
Balances – December 31, 2022	$	338,980			$	1,172			$	1,753,941			$	2,773,135			$	(177,649	)		$	1,359			$	4,690,938
Net income		—				—				—				341,878				—				—				341,878
Earnings attributable to noncontrolling interest		—				—				—				(13	)			—				13				—
Total other comprehensive income		—				—				—				—				18,218				—				18,218
Preferred stock dividends, $0.57812 per share		—				—				—				(8,094	)			—								(8,094	)
Common stock dividends, $0.69 per share		—				—				—				(80,659	)			—				—				(80,659	)
Issuance of 503,187 shares of common stock pursuant to stock-based compensation plans		—				5				541				—				—				—				546
Repurchase and cancellation of 4,304,239 shares of common stock under share repurchase program, including excise tax		—				(44	)			(151,421	)			—				—				—				(151,465	)
Repurchase and cancellation of 215,362 shares of common stock withheld for tax pursuant to stock-based compensation plans		—				(2	)			(8,672	)			—				—				—				(8,674	)
Stock-based compensation expense		—				—				8,575				—				—				—				8,575
Forfeitures of 15,065 shares of unvested restricted common stock		—				—				—				—				—				—				—
Balances – June 30, 2023	$	338,980			$	1,131			$	1,602,964			$	3,026,247			$	(159,431	)		$	1,372			$	4,811,263

Bank OZKSummary of Non-Interest ExpenseUnaudited
	Three Months Ended June 30,								Six Months Ended June 30,
		2024				2023				2024				2023
	(Dollars in thousands)
Salaries and employee benefits	$	73,409			$	65,219			$	142,973			$	128,468
Net occupancy and equipment		18,421				19,476				36,395				37,560
Other operating expenses:
Software and data processing		12,159				9,768				23,274				19,051
Deposit insurance and assessments		5,309				4,900				13,559				9,048
Professional and outside services		6,683				5,445				12,652				10,550
Advertising and public relations		6,888				3,184				10,785				7,219
Amortization of CRA and tax credit investments (1)		—				5,566				—				11,980
Other		14,582				15,797				31,126				31,695
Total non-interest expense	$	137,451			$	129,355			$	270,764			$	255,571
(1) Effective January 1, 2024, the Bank adopted ASU 2023-02, Investments-Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method, which resulted in the amortization of the Bank's CRA and tax credit investments being included in income tax expense instead of non-interest expense.

Bank OZKSummary of Total Loans OutstandingUnaudited
	June 30, 2024							December 31, 2023
	(Dollars in thousands)
Real estate:
Residential 1-4 family	$	1,001,809			3.5	%		$	961,338			3.6	%
Non-farm/non-residential		6,479,285			22.6				5,309,239			20.1
Construction/land development		11,491,193			40.1				11,653,487			44.0
Agricultural		276,785			1.0				256,423			1.0
Multifamily residential		2,359,446			8.2				2,064,106			7.8
Total real estate		21,608,518			75.4				20,244,593			76.5
Commercial and industrial		1,499,489			5.2				1,269,610			4.8
Consumer		3,419,053			11.9				2,965,042			11.2
Other		2,146,625			7.5				1,979,830			7.5
Total loans		28,673,685			100.0	%			26,459,075			100.0	%
Allowance for loan losses		(407,079	)						(339,394	)
Net loans	$	28,266,606						$	26,119,681

Bank OZKAllowance for Credit LossesUnaudited
	Allowance for Loan Losses				Reserve for Losses on Unfunded Credit Commitments				Total Allowance for Credit Losses
	(Dollars in thousands)
Three months ended June 30, 2024:
Balances – March 31, 2024	$	365,935			$	170,952			$	536,887
Net charge-offs		(11,798	)			—				(11,798	)
Provision for credit losses		52,942				(3,930	)			49,012
Balances – June 30, 2024	$	407,079			$	167,022			$	574,101
Six months ended June 30, 2024:
Balances – December 31, 2023	$	339,394			$	161,834			$	501,228
Net charge-offs		(19,062	)			—				(19,062	)
Provision for credit losses		86,747				5,188				91,935
Balances – June 30, 2024	$	407,079			$	167,022			$	574,101
Three months ended June 30, 2023:
Balances – March 31, 2023	$	222,025			$	171,742			$	393,767
Net charge-offs		(8,721	)			—				(8,721	)
Provision for credit losses		49,884				(8,110	)			41,774
Balances – June 30, 2023	$	263,188			$	163,632			$	426,820
Six months ended June 30, 2023:
Balances – December 31, 2022	$	208,858			$	156,419			$	365,277
Net charge-offs		(16,059	)			—				(16,059	)
Provision for credit losses		70,389				7,213				77,602
Balances – June 30, 2023	$	263,188			$	163,632			$	426,820

Bank OZKDeposits – By Customer TypeUnaudited
	June 30, 2024							December 31, 2023
	(Dollars in thousands)
Non-interest bearing	$	4,045,666			13.5	%		$	4,095,874			14.9	%
Interest bearing:
Consumer and commercial:
Consumer – Non-Time		2,832,203			9.5				2,792,199			10.2
Consumer – Time		12,188,301			40.7				10,216,217			37.3
Commercial – Non-Time		2,780,634			9.3				2,439,175			8.9
Commercial – Time		906,077			3.0				767,566			2.8
Public funds		3,760,669			12.6				3,725,766			13.6
Brokered		2,860,164			9.6				2,655,317			9.7
Reciprocal		569,949			1.8				713,029			2.6
Total deposits	$	29,943,663			100.0	%		$	27,405,143			100.0	%

Bank OZKSelected Consolidated Financial DataUnaudited
	Three Months Ended June 30,											Six Months Ended June 30,
		2024				2023			% Change				2024				2023			%Change
	(Dollars in thousands, except per share amounts)
Income statement data:
Net interest income	$	387,994			$	356,824			8.7	%		$	764,928			$	701,676			9.0	%
Provision for credit losses		49,012				41,774			17.3				91,935				77,602			18.5
Non-interest income		28,782				31,987			(10.0	)			57,867				59,795			(3.2	)
Non-interest expense		137,451				129,355			6.3				270,764				255,571			5.9
Net income		177,535				171,965			3.2				353,091				341,878			3.3
Preferred stock dividends		4,047				4,047			—				8,094				8,094			—
Net income available to common stockholders		173,496				167,917			3.3				344,987				333,771			3.4
Pre-tax pre-provision net revenue (1)		279,325				259,456			7.7				552,031				505,900			9.1
Common share and per common share data:
Diluted earnings per common share	$	1.52			$	1.47			3.4	%		$	3.03			$	2.88			5.2	%
Basic earnings per common share		1.53				1.47			4.1				3.04				2.89			5.2
Common stock dividends per share		0.39				0.35			11.4				0.77				0.69			11.6
Book value per share		44.67				39.51			13.1				44.67				39.51			13.1
Tangible book value per common share (1)		38.85				33.67			15.4				38.85				33.67			15.4
Weighted-average diluted shares outstanding (thousands)		113,995				114,284			(0.3	)			113,954				115,871			(1.7	)
End of period shares outstanding (thousands)		113,465				113,145			0.3				113,465				113,145			0.3
Balance sheet data at period end:
Total assets	$	36,836,173			$	30,761,870			19.7	%		$	36,836,173			$	30,761,870			19.7	%
Total loans		28,673,685				23,607,446			21.5				28,673,685				23,607,446			21.5
Non-purchased loans		28,455,342				23,291,785			22.2				28,455,342				23,291,785			22.2
Purchased loans		218,343				315,661			(30.8	)			218,343				315,661			(30.8	)
Allowance for loan losses		407,079				263,188			54.7				407,079				263,188			54.7
Foreclosed assets		71,023				62,048			14.5				71,023				62,048			14.5
Investment securities – AFS		2,981,929				3,262,366			(8.6	)			2,981,929				3,262,366			(8.6	)
Deposits		29,943,663				23,983,397			24.9				29,943,663				23,983,397			24.9
Other borrowings		400,943				1,104,478			(63.7	)			400,943				1,104,478			(63.7	)
Unfunded credit commitments		19,737,557				21,119,761			(6.5	)			19,737,557				21,119,761			(6.5	)
Reserve for losses on unfunded credit commitments		167,022				163,632			2.1				167,022				163,632			2.1
Preferred stock		338,980				338,980			—				338,980				338,980			—
Total common stockholders’ equity (1)		5,068,820				4,470,911			13.4				5,068,820				4,470,911			13.4
Total tangible common stockholders' equity (1)		4,408,031				3,809,745			15.7				4,408,031				3,809,745			15.7
Net unrealized losses on investment securities AFS included in stockholders’ equity		(100,939	)			(159,431	)						(100,939	)			(159,431	)
Loan (including purchased loans) to deposit ratio		95.76	%			98.43	%						95.76	%			98.43	%
Selected ratios:
Return on average assets (2)		1.92	%			2.27	%						1.94	%			2.34	%
Return on average common stockholders’ equity (1) (2)		13.98				15.14							14.07				15.19
Return on average tangible common stockholders’ equity (1) (2)		16.11				17.78							16.24				17.86
Total tangible common stockholders' equity to total tangible assets (1)		12.19				12.66							12.19				12.66
Net interest margin – FTE (2)		4.68				5.32							4.70				5.43
Efficiency ratio		32.74				33.05							32.67				33.33
Net charge-offs to average non-purchased loans (2) (3)		0.18				0.03							0.14				0.09
Net charge-offs to average total loans (2)		0.17				0.15							0.14				0.15
Nonperforming loans to total loans (4)		0.28				0.15							0.28				0.15
Nonperforming assets to total assets (4)		0.41				0.32							0.41				0.32
Allowance for loan losses to total loans (5)		1.42				1.11							1.42				1.11
Allowance for credit losses to total loans and unfunded credit commitments		1.19				0.95							1.19				0.95
Other information:
Non-accrual loans (4)	$	80,523			$	35,320						$	80,523			$	35,320

	(1)	See accompanying schedules for reconciliation of non-GAAP financial measures.
	(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 OZKSelected Consolidated Financial Data (continued)Unaudited
	Three Months Ended
	June 30, 2024				March 31, 2024				% Change
	(Dollars in thousands, except per share amounts)
Income statement data:
Net interest income	$	387,994			$	376,934			2.9	%
Provision for credit losses		49,012				42,923			14.2
Non-interest income		28,782				29,084			(1.0	)
Non-interest expense		137,451				133,314			3.1
Net income		177,535				175,555			1.1
Preferred stock dividends		4,047				4,047			—
Net income available to common stockholders		173,496				171,490			1.2
Pre-tax pre-provision net revenue (1)		279,325				272,704			2.4
Common share and per common share data:
Diluted earnings per common share	$	1.52			$	1.51			0.7	%
Basic earnings per common share		1.53				1.51			1.3
Common stock dividends per share		0.39				0.38			2.6
Book value per share		44.67				43.44			2.8
Tangible book value per common share (1)		38.85				37.62			3.3
Weighted-average diluted shares outstanding (thousands)		113,995				113,883			0.1
End of period shares outstanding (thousands)		113,465				113,435			—
Balance sheet data at period end:
Total assets	$	36,836,173			$	36,029,904			2.2	%
Total loans		28,673,685				28,031,348			2.3
Non-purchased loans		28,455,342				27,781,091			2.4
Purchased loans		218,343				250,257			(12.8	)
Allowance for loan losses		407,079				365,935			11.2
Foreclosed assets		71,023				60,782			16.8
Investment securities – AFS		2,981,929				3,072,391			(2.9	)
Deposits		29,943,663				29,406,070			1.8
Other borrowings		400,943				202,009			98.5
Unfunded credit commitments		19,737,557				20,458,796			(3.5	)
Reserve for losses on unfunded credit commitments		167,022				170,952			(2.3	)
Total common stockholders’ equity (1)		5,068,820				4,927,867			2.9
Total tangible common stockholders' equity (1)		4,408,031				4,267,078			3.3
Net unrealized losses on investment securities AFS included in stockholders’ equity		(100,939	)			(107,207	)
Loan (including purchased loans) to deposit ratio		95.76	%			95.33	%
Selected ratios:
Return on average assets (2)		1.92	%			1.96	%
Return on average common stockholders’ equity (1) (2)		13.98				14.16
Return on average tangible common stockholders’ equity (1) (2)		16.11				16.38
Total tangible common stockholders' equity to total tangible assets (1)		12.19				12.06
Net interest margin – FTE (2)		4.68				4.71
Efficiency ratio		32.74				32.59
Net charge-offs to average non-purchased loans (2) (3)		0.18				0.11
Net charge-offs to average total loans (2)		0.17				0.11
Nonperforming loans to total loans (4)		0.28				0.20
Nonperforming assets to total assets (4)		0.41				0.32
Allowance for loan losses to total loans (5)		1.42				1.31
Allowance for credit losses to total loans and unfunded credit commitments		1.19				1.11
Other information:
Non-accrual loans (4)	$	80,523			$	56,217

	(1)	See accompanying schedules for reconciliation of non-GAAP financial measures.
	(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 OZKSupplemental Quarterly Financial DataUnaudited
	6/30/24				3/31/24				12/31/23				9/30/23				6/30/23
	(Dollars in thousands, except per share amounts)
Earnings summary:
Net interest income	$	387,994			$	376,934			$	370,548			$	367,261			$	356,824
Federal tax (FTE) adjustment		3,037				3,030				2,925				2,632				2,602
Net interest income (FTE)		391,031				379,964				373,473				369,893				359,426
Provision for credit losses		(49,012	)			(42,923	)			(43,832	)			(44,036	)			(41,774	)
Non-interest income		28,782				29,084				37,027				25,727				31,987
Non-interest expense		(137,451	)			(133,314	)			(145,011	)			(128,978	)			(129,355	)
Pre-tax income (FTE)		233,350				232,811				221,657				222,606				220,284
FTE adjustment		(3,037	)			(3,030	)			(2,925	)			(2,632	)			(2,602	)
Provision for income taxes		(52,778	)			(54,226	)			(43,600	)			(46,144	)			(45,717	)
Noncontrolling interest		8				(18	)			(6	)			(37	)			(1	)
Preferred stock dividend		(4,047	)			(4,047	)			(4,047	)			(4,047	)			(4,047	)
Net income available to common stockholders	$	173,496			$	171,490			$	171,079			$	169,746			$	167,917
Earnings per common share – diluted	$	1.52			$	1.51			$	1.50			$	1.49			$	1.47
Pre-tax pre-provision net revenue (1)	$	279,325			$	272,704			$	262,564			$	264,010			$	259,456
Selected balance sheet data at period end:
Total assets	$	36,836,173			$	36,029,904			$	34,237,457			$	32,767,328			$	30,761,870
Non-purchased loans		28,455,342				27,781,091				26,195,030				25,051,214				23,291,785
Purchased loans		218,343				250,257				264,045				280,526				315,661
Investment securities – AFS		2,981,929				3,072,391				3,244,371				3,153,817				3,262,366
Deposits		29,943,663				29,406,070				27,405,143				25,552,856				23,983,397
Unfunded credit commitments		19,737,557				20,458,796				20,561,029				20,625,371				21,119,761
Allowance for credit losses:
Balance at beginning of period	$	536,887			$	501,228			$	461,486			$	426,820			$	393,767
Net charge-offs		(11,798	)			(7,264	)			(4,090	)			(9,370	)			(8,721	)
Provision for credit losses		49,012				42,923				43,832				44,036				41,774
Balance at end of period	$	574,101			$	536,887			$	501,228			$	461,486			$	426,820
Allowance for loan losses	$	407,079			$	365,935			$	339,394			$	303,358			$	263,188
Reserve for losses on unfunded credit commitments		167,022				170,952				161,834				158,128				163,632
Total allowance for credit losses	$	574,101			$	536,887			$	501,228			$	461,486			$	426,820
Selected ratios:
Net interest margin – FTE (2)		4.68	%			4.71	%			4.82	%			5.05	%			5.32	%
Efficiency ratio		32.74				32.59				35.33				32.60				33.05
Net charge-offs to average non-purchased loans (2) (3)		0.18				0.11				0.07				0.17				0.03
Net charge-offs to average total loans (2)		0.17				0.11				0.06				0.15				0.15
Nonperforming loans to total loans (4)		0.28				0.20				0.23				0.25				0.15
Nonperforming assets to total assets (4)		0.41				0.32				0.36				0.40				0.32
Allowance for loan losses to total loans (5)		1.42				1.31				1.28				1.20				1.11
Allowance for credit losses to total loans and unfunded credit commitments		1.19				1.11				1.07				1.00				0.95
Loans past due 30 days or more, including past due non-accrual loans, to total loans (4)		0.16				0.17				0.20				0.21				0.14

	(1)	Calculations of pre-tax pre-provision net revenue and the reconciliation to GAAP are included in the schedules accompanying this release.
	(2)	Ratios for interim periods annualized based on actual days.
	(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 OZKAverage Consolidated Balance Sheets and Net Interest Analysis – FTEUnaudited
	Three Months Ended June 30,																		Six months ended June 30,
		2024									2023									2024									2023
	Average Balance			Income/ Expense			Yield/Rate			Average Balance			Income/ Expense			Yield/Rate			Average Balance			Income/ Expense			Yield/Rate			Average Balance			Income/ Expense			Yield/Rate
	(Dollars in thousands)
ASSETS
Interest earning assets:
Interest earning deposits	$	2,013,116		$	26,604		5.32	%		$	957,439		$	11,407		4.78	%		$	1,937,493		$	51,210		5.32	%		$	849,082		$	19,277		4.58	%
Investment securities:
Taxable		1,877,176			8,793		1.88				2,363,265			9,704		1.65				1,965,078			18,126		1.85				2,406,769			19,875		1.67
Tax-exempt – FTE		1,143,254			14,111		4.96				1,040,757			12,011		4.63				1,157,685			28,254		4.91				1,034,317			23,738		4.63
Non-purchased loans – FTE		28,303,265			616,720		8.76				22,368,771			472,604		8.47				27,709,736			1,203,762		8.74				21,613,844			887,640		8.28
Purchased loans		240,778			4,644		7.76				346,696			5,322		6.16				249,283			9,604		7.75				358,725			11,840		6.66
Total earning assets – FTE		33,577,589			670,872		8.04				27,076,928			511,048		7.57				33,019,275			1,310,956		7.98				26,262,737			962,370		7.39
Non-interest earning assets		2,761,795									2,587,338									2,750,997									2,552,387
Total assets	$	36,339,384								$	29,664,266								$	35,770,272								$	28,815,124
LIABILITIES AND STOCKHOLDERS’ EQUITY
Interest bearing liabilities:
Deposits:
Savings and interest bearing transaction	$	9,277,131		$	68,593		2.97	%		$	9,075,132		$	48,650		2.15	%		$	9,229,938		$	135,494		2.95	%		$	9,402,496		$	91,164		1.96	%
Time deposits		16,385,329			202,211		4.96				9,650,599			87,472		3.64				15,930,851			389,632		4.92				8,612,573			138,590		3.24
Total interest bearing deposits		25,662,460			270,804		4.24				18,725,731			136,122		2.92				25,160,789			525,126		4.20				18,015,069			229,754		2.57
Other borrowings (2)		321,521			3,964		4.96				828,644			10,591		5.13				203,281			4,715		4.66				648,870			16,013		4.98
Subordinated notes		348,066			2,603		3.01				347,251			2,603		3.01				347,965			5,177		2.99				347,151			5,177		3.01
Subordinated debentures		121,652			2,471		8.17				121,652			2,306		7.60				121,652			4,944		8.17				121,645			4,545		7.54
Total interest bearing liabilities		26,453,699			279,842		4.25				20,023,278			151,622		3.04				25,833,687			539,962		4.20				19,132,735			255,489		2.69
Non-interest bearing liabilities:
Non-interest bearing deposits		3,893,094									4,348,639									3,996,931									4,409,684
Other non-interest bearing liabilities		660,618									502,394									667,969									501,203
Total liabilities		31,007,411									24,874,311									30,498,587									24,043,622
Total stockholders’ equity before noncontrolling interest		5,330,984									4,788,584									5,270,700									4,770,135
Noncontrolling interest		989									1,371									985									1,367
Total liabilities and stockholders’ equity	$	36,339,384								$	29,664,266								$	35,770,272								$	28,815,124
Net interest income – FTE				$	391,030								$	359,426								$	770,994								$	706,881
Net interest margin – FTE							4.68	%								5.32	%								4.70	%								5.43	%
Core spread (1)							4.52	%								5.55	%								4.54	%								5.71	%

	(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.
	(2)	The interest expense and the rates paid "other borrowings" include capitalized interest which totaled $0.5 million and $0.8 million for the second quarter and first six months of 2024. Capitalized interest was not material for the second quarter and first six months of 2023.

Bank OZKReconciliation of Non-GAAP Financial MeasuresCalculation of Average Common Stockholders’ Equity, Average Tangible Common Stockholders’ Equity and the Annualized Returns on Average Common Stockholders’ Equity and Average Tangible Common Stockholders’ Equity Unaudited
	Three Months Ended												Six Months Ended
	June 30,				June 30,				March 31,				June 30,				June 30,
		2024				2023				2024				2024				2023
	(Dollars in thousands)
Net income available to common stockholders	$	173,496			$	167,917			$	171,490			$	344,987			$	333,771
Average stockholders’ equity before noncontrolling interest	$	5,330,984			$	4,788,584			$	5,210,418			$	5,270,700			$	4,770,135
Less average preferred stock		(338,980	)			(338,980	)			(338,980	)			(338,980	)			(338,980	)
Total average common stockholders’ equity		4,992,004				4,449,604			$	4,871,438				4,931,720				4,431,155
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		—				(999	)							—				(1,618	)
Total average intangibles		(660,789	)			(661,788	)			(660,789	)			(660,789	)			(662,407	)
Average tangible common stockholders’ equity	$	4,331,215			$	3,787,816			$	4,210,649			$	4,270,931			$	3,768,748
Return on average common stockholders’ equity(1)		13.98	%			15.14	%			14.16	%			14.07	%			15.19	%
Return on average tangible common stockholders’ equity(1)		16.11	%			17.78	%			16.38	%			16.24	%			17.86	%

 

(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 ShareUnaudited
	June 30,								March 31,
		2024				2023				2024
	(In thousands, except per share amounts)
Total stockholders’ equity before noncontrolling interest	$	5,407,800			$	4,809,891			$	5,266,847
Less preferred stock		(338,980	)			(338,980	)			(338,980	)
Total common stockholders’ equity	$	5,068,820			$	4,470,911			$	4,927,867
Less intangible assets:
Goodwill		(660,789	)			(660,789	)			(660,789	)
Core deposit and other intangible assets, net of accumulated amortization		—				(377	)			—
Total intangibles		(660,789	)			(661,166	)			(660,789	)
Total tangible common stockholders’ equity	$	4,408,031			$	3,809,745			$	4,267,078
Shares of common stock outstanding		113,465				113,145				113,435
Book value per common share	$	44.67			$	39.51			$	43.44
Tangible book value per common share	$	38.85			$	33.67			$	37.62

Calculation of Total Common Stockholders’ Equity,Total Tangible Common Stockholders’ Equityand the Ratio of Total Tangible Common Stockholders’ Equity to Total Tangible AssetsUnaudited
	June 30,								March 31,
		2024				2023				2024
	(Dollars in thousands)
Total stockholders’ equity before noncontrolling interest	$	5,407,800			$	4,809,891			$	5,266,847
Less preferred stock		(338,980	)			(338,980	)			(338,980	)
Total common stockholders’ equity	$	5,068,820			$	4,470,911			$	4,927,867
Less intangible assets:
Goodwill		(660,789	)			(660,789	)			(660,789	)
Core deposit and other intangible assets, net of accumulated amortization		—				(377	)			—
Total intangibles		(660,789	)			(661,166	)			(660,789	)
Total tangible common stockholders’ equity		4,408,031				3,809,745				4,267,078
Total assets	$	36,836,173			$	30,761,870			$	36,029,904
Less intangible assets:
Goodwill	$	(660,789	)		$	(660,789	)		$	(660,789	)
Core deposit and other intangible assets, net of accumulated amortization		—				(377	)			—
Total intangibles		(660,789	)			(661,166	)			(660,789	)
Total tangible assets	$	36,175,384			$	30,100,704			$	35,369,115
Ratio of total common stockholders’ equity to total assets		13.76	%			14.53	%			13.68	%
Ratio of total tangible common stockholders’ equity to total tangible assets		12.19	%			12.66	%			12.06	%

Calculation of Pre-Tax Pre-Provision Net RevenueUnaudited
	Three Months Ended																				Six Months Ended
	June 30,				March 31,				December 31,				September 30				June 30,				June 30,
		2024				2024				2023				2023				2023				2024				2023
	(Dollars in thousands)
Net income available to common stockholders	$	173,496			$	171,490			$	171,079			$	169,746			$	167,917			$	344,987			$	333,771
Preferred stock dividends		4,047				4,047				4,047				4,047				4,047				8,094				8,094
Earnings attributable to noncontrolling interest		(8	)			18				6				37				1				10				13
Provision for income taxes		52,778				54,226				43,600				46,144				45,717				107,005				86,420
Provision for credit losses		49,012				42,923				43,832				44,036				41,774				91,935				77,602
Pre-tax pre-provision net revenue	$	279,325			$	272,704			$	262,564			$	264,010			$	259,456			$	552,031			$	505,900

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Media Contact:		Michelle Rossow (501) 906-3922