OZK Bank OZK

Bank OZK (the “Bank”) (Nasdaq: OZK) today announced that net income available to common stockholders for the third quarter of 2023 was a record $169.7 million, a 32.3% increase from $128.3 million for the third quarter of 2022. Diluted earnings per common share for the third quarter of 2023 were a record $1.49, a 38.0% increase from $1.08 for the third quarter of 2022.

For the nine months ended September 30, 2023, net income available to common stockholders was $503.5 million, a 29.5% increase from $388.7 million for the first nine months of 2022. Diluted earnings per common share for the first nine months of 2023 were $4.37, a 36.6% increase from $3.20 for the first nine months of 2022.

Pre-tax pre-provision net revenue (“PPNR”) was $264.0 million for the third quarter of 2023, a 26.9% increase from $208.1 million for the third quarter of 2022. For the first nine months of 2023, PPNR was $769.9 million, a 36.5% increase from $564.0 million for the first nine months of 2022. 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 $44.0 million for the third quarter and $121.6 million for the first nine months of 2023 compared to $39.8 million for the third quarter of 2022 and $51.0 million for the first nine months of 2022. The Bank’s total allowance for credit losses (“ACL”) was $461.5 million at September 30, 2023 compared to $335.6 million at September 30, 2022.

The Bank’s annualized returns on average assets, average common stockholders’ equity and average tangible common stockholders’ equity for the third quarter of 2023 were 2.13%, 14.81% and 17.33%, respectively, compared to 1.97%, 11.85% and 14.02%, respectively, for the third quarter of 2022. The Bank’s annualized returns on average assets, average common stockholders’ equity and average tangible common stockholders’ equity for the first nine months of 2023 were 2.26%, 15.06% and 17.68%, respectively, compared to 1.99%, 11.97% and 14.14%, respectively, for the first nine months of 2022. 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 have been well positioned for rising interest rates and the turbulent environment of the last six quarters, and our preparation has been reflected in our record results. We believe we are well positioned for the coming quarters, and we look forward to capitalizing on new opportunities.”

KEY BALANCE SHEET METRICS

Total loans were $25.33 billion at September 30, 2023, a 29.8% increase from $19.51 billion at September 30, 2022. Deposits were $25.55 billion at September 30, 2023, a 25.2% increase from $20.40 billion at September 30, 2022. Total assets were $32.77 billion at September 30, 2023, a 24.9% increase from $26.23 billion at September 30, 2022.

Common stockholders’ equity was $4.56 billion at September 30, 2023, an 8.7% increase from $4.20 billion at September 30, 2022. Tangible common stockholders’ equity was $3.90 billion at September 30, 2023, a 10.4% increase from $3.54 billion at September 30, 2022. The Bank did not repurchase any shares during the three months ended September 30, 2023. During the first nine months of 2023, the Bank repurchased 4.3 million shares for $151.5 million, which equates to a weighted average cost of approximately $35.19 per share.

Book value per common share was $40.35 at September 30, 2023, a 13.1% increase from $35.67 at September 30, 2022. Tangible book value per common share was $34.50 at September 30, 2023, a 14.9% increase from $30.02 at September 30, 2022.

The Bank’s ratio of total common stockholders’ equity to total assets was 13.93% at September 30, 2023, compared to 16.01% at September 30, 2022. Its ratio of total tangible common stockholders’ equity to total tangible assets was 12.16% at September 30, 2023, compared to 13.83% at September 30, 2022. The calculations of the Bank’s total common stockholders’ equity, tangible common stockholders’ equity, tangible book value per common share, and ratio of total tangible common stockholders’ equity to total tangible assets and the reconciliations to GAAP are included in the schedules accompanying this release.

ASSET QUALITY

The Bank’s ratio of nonperforming non-purchased loans to total loans (excluding purchased loans) was 0.25% at September 30, 2023, compared to 0.14% as of September 30, 2022. The Bank’s ratio of nonperforming assets to total assets (excluding purchased loans, except for their inclusion in total assets) was 0.40% at September 30, 2023, compared to 0.13% as of September 30, 2022. The Bank's annualized ratio of net charge-offs of total loans to average total loans was 0.15% for the third quarter and nine months ended September 30, 2023, compared to 0.09% for the third quarter and 0.03% for the first nine months of September 30, 2022.

MANAGEMENT’S COMMENTS, CONFERENCE CALL, TRANSCRIPT AND FILINGS

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

Management will conduct a conference call to take questions at 10:00 a.m. CT (11:00 a.m. ET) on Friday, October 20, 2023. 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 hiring or retaining qualified personnel, obtaining regulatory or other approvals, delays in acquiring satisfactory sites, obtaining permits and designing, constructing and opening new offices or 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, including the effects of recent failures of other financial institutions; recently enacted and potential 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, 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 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 cyber-attacks 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; the competition and costs of recruiting and retaining human talent; 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, 2022 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 $32.77 billion in total assets as of September 30, 2023. For more information, visit www.ozk.com.

Bank OZK
Consolidated Balance Sheets
Unaudited
	September 30, 2023				December 31, 2022
	(Dollars in thousands)
ASSETS
Cash and cash equivalents	$	1,864,300			$	1,033,454
Investment securities – available for sale (“AFS”)		3,153,817				3,491,613
Investment securities – trading		—				8,817
Federal Home Loan Bank of Dallas (“FHLB”) and other bankers’ bank stocks		63,722				42,406
Non-purchased loans		25,051,214				20,400,154
Purchased loans		280,526				378,637
Allowance for loan losses		(303,358	)			(208,858	)
Net Loans		25,028,382				20,569,933
Premises and equipment, net		665,806				678,405
Foreclosed assets		68,738				6,616
Accrued interest receivable		154,244				125,130
Bank owned life insurance (“BOLI”)		804,394				789,805
Goodwill and other intangible assets, net		660,789				663,543
Other, net		303,136				246,846
Total assets	$	32,767,328			$	27,656,568
LIABILITIES AND STOCKHOLDERS’ EQUITY
Deposits:
Demand non-interest bearing	$	4,283,925			$	4,658,451
Savings and interest bearing transaction		9,029,610				9,905,717
Time		12,239,321				6,935,975
Total deposits		25,552,856				21,500,143
Other borrowings		1,430,192				606,666
Subordinated notes		347,556				346,947
Subordinated debentures		121,652				121,591
Reserve for losses on unfunded loan commitments		158,128				156,419
Accrued interest payable and other liabilities		252,031				233,864
Total liabilities	$	27,862,415			$	22,965,630
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, 2023 and December 31, 2022		338,980				338,980
Common Stock: $0.01 par value; 300,000,000 shares authorized; 113,136,232 and 117,176,928 shares issued and outstanding at September 30, 2023 and December 31, 2022, respectively		1,131				1,172
Additional paid-in capital		1,607,510				1,753,941
Retained earnings		3,154,869				2,773,135
Accumulated other comprehensive (loss) income		(198,986	)			(177,649	)
Total stockholders’ equity before noncontrolling interest		4,903,504				4,689,579
Noncontrolling interest		1,409				1,359
Total stockholders’ equity		4,904,913				4,690,938
Total liabilities and stockholders’ equity	$	32,767,328			$	27,656,568

Bank OZK
Consolidated Statements of Income
Unaudited
	Three Months Ended September 30,							Nine Months Ended September 30,
	2023				2022			2023				2022
	(Dollars in thousands, except per share amounts)
Interest income:
Non-purchased loans	$	523,026			$	295,054		$	1,410,446			$	791,313
Purchased loans		6,005				7,148			17,845				24,300
Investment securities:
Taxable		9,887				10,269			29,761				31,246
Tax-exempt		9,534				7,126			28,288				14,132
Deposits with banks and federal funds sold		17,061				3,690			36,338				6,155
Total interest income		565,513				323,287			1,522,678				867,146
Interest expense:
Deposits		178,823				21,997			408,577				41,343
Other borrowings		14,326				2,460			30,339				4,500
Subordinated notes		2,631				2,631			7,808				7,808
Subordinated debentures		2,472				1,582			7,017				3,741
Total interest expense		198,252				28,670			453,741				57,392
Net interest income		367,261				294,617			1,068,937				809,754
Provision for credit losses		44,036				39,771			121,638				50,986
Net interest income after provision for credit losses		323,225				254,846			947,299				758,768
Non-interest income:
Service charges on deposit accounts:
NSF and overdraft fees		4,708				4,808			13,359				13,257
All other service charges		6,973				7,089			20,662				20,963
Trust income		2,213				2,007			6,358				6,012
BOLI income:
Increase in cash surrender value		5,252				4,940			15,295				14,579
Death benefits		—				510			—				807
Loan service, maintenance and other fees		3,995				3,418			12,165				10,039
Gains on sales of other assets		364				3,182			5,740				10,957
Net gains (loss) on investment securities		(270	)			321			2,066				762
Other		2,492				2,888			9,877				9,583
Total non-interest income		25,727				29,163			85,522				86,959
Non-interest expense:
Salaries and employee benefits		64,107				57,367			192,576				166,427
Net occupancy and equipment		17,797				18,244			55,357				52,474
Other operating expenses		47,074				40,080			136,616				113,807
Total non-interest expense		128,978				115,691			384,549				332,708
Income before taxes		219,974				168,318			648,272				513,019
Provision for income taxes		46,144				35,969			132,564				111,754
Net income		173,830				132,349			515,708				401,265
Earnings attributable to noncontrolling interest		(37	)			—			(50	)			(3	)
Preferred stock dividends		4,047				4,047			12,141				12,574
Net income available to common stockholders	$	169,746			$	128,302		$	503,517			$	388,688
Basic earnings per common share	$	1.50			$	1.08		$	4.39			$	3.21
Diluted earnings per common share	$	1.49			$	1.08		$	4.37			$	3.20

Bank OZK
Consolidated Statements of Stockholders’ Equity
Unaudited
	PreferredStock			CommonStock				AdditionalPaid-inCapital				RetainedEarnings				AccumulatedOtherComprehensive(Loss) Income				Non-ControllingInterest			Total
	(Dollars in thousands, except per share amounts)
Three months ended September 30, 2023:
Balances - June 30, 2023	$	338,980		$	1,131			$	1,602,964			$	3,026,247			$	(159,431	)		$	1,372		$	4,811,263
Net income		—			—				—				173,830				—				—			173,830
Earnings attributable to noncontrolling interest		—			—				—				(37	)			—				37			—
Total other comprehensive loss		—			—				—				—				(39,555	)			—			(39,555	)
Preferred stock dividends, $0.28906 per share		—			—				—				(4,047	)			—				—			(4,047	)
Common stock dividends, $0.36 per share		—			—				—				(41,124	)			—				—			(41,124	)
Issuance of 2,446 shares of common stock pursuant to stock-based compensation plans		—			—				77				—				—				—			77
Stock-based compensation expense		—			—				4,469				—				—				—			4,469
Forfeitures of 11,663 shares of unvested restricted common stock		—			—				—				—				—				—			—
Balances - September 30, 2023	$	338,980		$	1,131			$	1,607,510			$	3,154,869			$	(198,986	)		$	1,409		$	4,904,913
Nine months ended September 30, 2023:
Balances - December 31, 2022	$	338,980		$	1,172			$	1,753,941			$	2,773,135			$	(177,649	)		$	1,359		$	4,690,938
Net income		—			—				—				515,708				—				—			515,708
Earnings attributable to noncontrolling interest		—			—				—				(50	)			—				50			—
Total other comprehensive loss		—			—				—				—				(21,337	)			—			(21,337	)
Preferred stock dividends, $0.86718 per share		—			—				—				(12,141	)			—				—			(12,141	)
Common stock dividends, $1.05 per share		—			—				—				(121,783	)			—				—			(121,783	)
Issuance of 505,633 shares of common stock pursuant to stock-based compensation plans		—			5				618				—				—				—			623
Repurchase and cancellation of 4,304,239 shares of common stock under share repurchase program, including excise taxes		—			(44	)			(151,421	)			—				—				—			(151,465	)
Repurchase and cancellation of 215,362 shares of common stock withheld for tax pursuant to stock-based compensation plans		—			(2	)			(8,672	)			—											(8,674	)
Stock-based compensation expense		—			—				13,044				—				—				—			13,044
Forfeitures of 26,728 shares of unvested restricted common stock		—			—				—				—				—				—			—
Balances - September 30, 2023	$	338,980		$	1,131			$	1,607,510			$	3,154,869			$	(198,986	)		$	1,409		$	4,904,913

Bank OZK
Consolidated Statements of Stockholders’ Equity
Unaudited
	PreferredStock			CommonStock				AdditionalPaid-inCapital				RetainedEarnings				AccumulatedOtherComprehensive(Loss) Income				Non-ControllingInterest			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 pursuant to stock-based compensation plans		—			—				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 295,343 shares of common stock pursuant to stock-based compensation plans		—			3				2,249				—				—				—			2,252
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 stock-based compensation plans.		—			(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
Summary of Non-Interest Expense
Unaudited
	Three Months Ended September 30,						Nine Months Ended September 30,
	2023			2022			2023			2022
	(Dollars in thousands)
Salaries and employee benefits	$	64,107		$	57,367		$	192,576		$	166,427
Net occupancy and equipment		17,797			18,244			55,357			52,474
Other operating expenses:
Software and data processing		9,584			8,700			28,634			25,861
Deposit insurance and assessments		5,500			2,650			14,548			6,900
Professional and outside services		4,640			5,403			15,190			15,929
Advertising and public relations		3,779			3,448			10,998			5,810
Telecommunication services		1,943			1,921			6,614			5,852
ATM expense		1,927			1,500			5,725			4,497
Travel and meals		1,926			1,962			5,644			5,906
Postage and supplies		1,716			2,035			5,859			5,240
Loan collection and repossession expense		1,210			402			2,113			1,081
Amortization of intangibles		376			1,298			2,754			4,331
Writedowns of foreclosed and other assets		141			87			1,106			345
Amortization of CRA and tax credit investments		8,171			5,155			20,151			14,885
Other		6,161			5,519			17,280			17,170
Total non-interest expense	$	128,978		$	115,691		$	384,549		$	332,708

Bank OZK
Summary of Total Loans Outstanding
Unaudited
	September 30, 2023							December 31, 2022
	(Dollars in thousands)
Real estate:
Residential 1-4 family	$	960,262			3.8	%		$	981,567			4.7	%
Non-farm/non-residential		5,251,392			20.7				4,665,268			22.5
Construction/land development		10,743,850			42.4				8,215,056			39.5
Agricultural		254,147			1.0				239,689			1.2
Multifamily residential		2,045,927			8.1				1,503,398			7.2
Total real estate		19,255,578			76.0				15,604,978			75.1
Commercial and industrial		1,257,018			5.0				902,321			4.3
Consumer		2,936,455			11.6				2,445,851			11.8
Other		1,882,689			7.4				1,825,641			8.8
Total loans		25,331,740			100.0	%			20,778,791			100.0	%
Allowance for loan losses		(303,358	)						(208,858	)
Net loans	$	25,028,382						$	20,569,933

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, 2023:
Balances – June 30, 2023	$	263,188			$	163,632			$	426,820
Net charge-offs		(9,370	)			—				(9,370	)
Provision for credit losses		49,540				(5,504	)			44,036
Balances - September 30, 2023	$	303,358			$	158,128			$	461,486
Nine months ended September 30, 2023:
Balances – December 31, 2022	$	208,858			$	156,419			$	365,277
Net charge-offs		(25,429	)			—				(25,429	)
Provision for credit losses		119,929				1,709				121,638
Balances - September 30, 2023	$	303,358			$	158,128			$	461,486
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

Bank OZK
Summary of Deposits – By Account Type
Unaudited
	September 30, 2023						December 31, 2022
	(Dollars in thousands)
Non-interest bearing	$	4,283,925		16.8	%		$	4,658,451		21.7	%
Interest bearing:
Transaction (NOW)		4,319,285		16.9				4,097,532		19.1
Savings and money market		4,710,325		18.4				5,808,185		27.0
Time deposits		12,239,321		47.9				6,935,975		32.2
Total deposits	$	25,552,856		100.0	%		$	21,500,143		100.0	%

Bank OZK
Summary of Deposits – By Customer Type
Unaudited
	September 30, 2023						December 31, 2022
	(Dollars in thousands)
Non-interest bearing	$	4,283,925		16.8	%		$	4,658,451		21.7	%
Interest bearing:
Consumer and commercial:
Consumer – Non-Time		2,928,352		11.5				3,916,078		18.2
Consumer – Time		8,756,078		34.3				4,936,061		23.0
Commercial – Non-Time		2,320,691		9.1				2,741,007		12.7
Commercial – Time		683,849		2.7				516,477		2.4
Public funds		2,992,447		11.7				2,103,392		9.8
Brokered		2,774,888		10.9				2,050,294		9.5
Reciprocal		812,626		3.0				578,383		2.7
Total deposits	$	25,552,856		100.0	%		$	21,500,143		100.0	%

Bank OZK
Selected Consolidated Financial Data
Unaudited
	Three Months Ended September 30,											Nine Months Ended September 30,
	2023				2022				%Change			2023				2022				%Change
	(Dollars in thousands, except per share amounts)
Income statement data:
Net interest income	$	367,261			$	294,617			24.7	%		$	1,068,937			$	809,754			32.0	%
Provision for credit losses		44,036				39,771			10.7				121,638				50,986			138.6
Non-interest income		25,727				29,163			(11.8	)			85,522				86,959			(1.7	)
Non-interest expense		128,978				115,691			11.5				384,549				332,708			15.6
Net income		173,830				132,349			31.3				515,708				401,265			28.5
Preferred stock dividends		4,047				4,047			—				12,141				12,574			(3.4	)
Net income available to common stockholders		169,746				128,302			32.3				503,517				388,688			29.5
Pre-tax pre-provision net revenue(1)		264,010				208,089			26.9				769,910				564,005			36.5
Common share and per common share data:
Diluted earnings per common share	$	1.49			$	1.08			38.0	%		$	4.37			$	3.20			36.6	%
Basic earnings per common share		1.50				1.08			38.9				4.39				3.21			36.8
Common stock dividends per share		0.36				0.32			12.5				1.05				0.93			12.9
Book value per share		40.35				35.67			13.1				40.35				35.67			13.1
Tangible book value per common share(1)		34.50				30.02			14.9				34.50				30.02			14.9
Weighted-average diluted shares outstanding (thousands)		113,770				118,856			(4.3	)			115,226				121,539			(5.2	)
End of period shares outstanding (thousands)		113,136				117,762			(3.9	)			113,136				117,762			(3.9	)
Balance sheet data at period end:
Total assets	$	32,767,328			$	26,232,119			24.9	%		$	32,767,328			$	26,232,119			24.9	%
Total loans		25,331,740				19,513,712			29.8				25,331,740				19,513,712			29.8
Non-purchased loans		25,051,214				19,103,546			31.1				25,051,214				19,103,546			31.1
Purchased loans		280,526				410,166			(31.6	)			280,526				410,166			(31.6	)
Allowance for loan losses		303,358				200,098			51.6				303,358				200,098			51.6
Foreclosed assets		68,738				6,559			948.0				68,738				6,559			948.0
Investment securities – AFS		3,153,817				3,528,077			(10.6	)			3,153,817				3,528,077			(10.6	)
Goodwill and other intangible assets, net		660,789				664,732			(0.6	)			660,789				664,732			(0.6	)
Deposits		25,552,856				20,401,876			25.2				25,552,856				20,401,876			25.2
Other borrowings		1,430,192				456,466			213.3				1,430,192				456,466			213.3
Subordinated notes		347,556				346,741			0.2				347,556				346,741			0.2
Subordinated debentures		121,652				121,450			0.2				121,652				121,450			0.2
Unfunded balance of closed loans		20,625,371				20,091,101			2.7				20,625,371				20,091,101			2.7
Reserve for losses on unfunded loan commitments		158,128				135,537			16.7				158,128				135,537			16.7
Preferred stock		338,980				338,980			—				338,980				338,980			—
Total common stockholders’ equity		4,564,524				4,200,444			8.7				4,564,524				4,200,444			8.7
Net unrealized losses on investment securities AFS included in stockholders' equity		(198,986	)			(227,673	)						(198,986	)			(227,673	)
Loan (including purchased loans) to deposit ratio		99.13	%			95.65	%						99.13	%			95.65	%
Selected ratios:
Return on average assets(2)		2.13	%			1.97	%						2.26	%			1.99	%
Return on average common stockholders' equity(1) (2)		14.81				11.85							15.06				11.97
Return on average tangible common stockholders' equity(1) (2)		17.33				14.02							17.68				14.14
Average common equity to total average assets		14.38				16.61							15.02				16.60
Net interest margin – FTE(2)		5.05				5.03							5.29				4.60
Efficiency ratio		32.60				35.50							33.09				36.92
Net charge-offs to average non-purchased loans(2) (3)		0.17				0.09							0.12				0.07
Net charge-offs to average total loans(2)		0.15				0.09							0.15				0.03
Nonperforming loans to total loans(4)		0.25				0.14							0.25				0.14
Nonperforming assets to total assets(4)		0.40				0.13							0.40				0.13
Allowance for loan losses to total loans(5)		1.20				1.03							1.20				1.03
Allowance for credit losses to total loans and unfunded loan commitments		1.00				0.85							1.00				0.85
Other information:
Non-accrual loans(4)	$	62,648			$	24,633						$	62,648			$	24,633
Accruing loans - 90 days past due(4)		—				—							—				—

(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
Selected Consolidated Financial Data (continued)
Unaudited
	Three Months Ended
	September 30, 2023				June 30, 2023				%Change
	(Dollars in thousands, except per share amounts)
Income statement data:
Net interest income	$	367,261			$	356,824			2.9	%
Provision for credit losses		44,036				41,774			5.4
Non-interest income		25,727				31,987			(19.6	)
Non-interest expense		128,978				129,355			(0.3	)
Net income		173,830				171,965			1.1
Preferred stock dividends		4,047				4,047			—
Net income available to common stockholders		169,746				167,917			1.1
Pre-tax pre-provision net revenue(1)		264,010				259,456			1.8
Common share and per common share data:
Diluted earnings per common share	$	1.49			$	1.47			1.4	%
Basic earnings per common share		1.50				1.47			2.0
Common stock dividends per share		0.36				0.35			2.9
Book value per share		40.35				39.51			2.1
Tangible book value per common share(1)		34.50				33.67			2.5
Weighted-average diluted shares outstanding (thousands)		113,770				114,284			(0.4	)
End of period shares outstanding (thousands)		113,136				113,145			—
Balance sheet data at period end:
Total assets	$	32,767,328			$	30,761,870			6.5	%
Total loans		25,331,740				23,607,446			7.3
Non-purchased loans		25,051,214				23,291,785			7.6
Purchased loans		280,526				315,661			(11.1	)
Allowance for loan losses		303,358				263,188			15.3
Foreclosed assets		68,738				62,048			10.8
Investment securities – AFS		3,153,817				3,262,366			(3.3	)
Goodwill and other intangible assets, net		660,789				661,166			(0.1	)
Deposits		25,552,856				23,983,397			6.5
Other borrowings		1,430,192				1,104,478			29.5
Subordinated notes		347,556				347,350			0.1
Subordinated debentures		121,652				121,652			—
Unfunded balance of closed loans		20,625,371				21,119,761			(2.3	)
Reserve for losses on unfunded loan commitments		158,128				163,632			(3.4	)
Preferred stock		338,980				338,980			—
Total common stockholders’ equity		4,564,524				4,470,911			2.1
Net unrealized losses on investment securities AFS included in stockholders' equity		(198,986	)			(159,431	)
Loan (including purchased loans) to deposit ratio		99.13	%			98.43	%
Selected ratios:
Return on average assets(2)		2.13	%			2.27	%
Return on average common stockholders' equity(1) (2)		14.81				15.14
Return on average tangible common stockholders' equity(1) (2)		17.33				17.78
Average common equity to total average assets		14.38				15.00
Net interest margin – FTE(2)		5.05				5.32
Efficiency ratio		32.60				33.05
Net charge-offs to average non-purchased loans(2) (3)		0.17				0.03
Net charge-offs to average total loans(2)		0.15				0.15
Nonperforming loans to total loans(4)		0.25				0.15
Nonperforming assets to total assets(4)		0.40				0.32
Allowance for loan losses to total loans(5)		1.20				1.11
Allowance for credit losses to total loans and unfunded loan commitments		1.00				0.95
Other information:
Non-accrual loans(4)	$	62,648			$	35,320
Accruing loans - 90 days past due(4)		—				—

(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
	9/30/23				6/30/23				3/31/23				12/31/22				9/30/22
	(Dollars in thousands)
Earnings summary:
Net interest income	$	367,261			$	356,824			$	344,852			$	332,488			$	294,617
Federal tax (FTE) adjustment		2,632				2,602				2,603				2,383				2,151
Net interest income (FTE)		369,893				359,426				347,455				334,871				296,768
Provision for credit losses		(44,036	)			(41,774	)			(35,829	)			(32,508	)			(39,771	)
Non-interest income		25,727				31,987				27,809				27,544				29,163
Non-interest expense		(128,978	)			(129,355	)			(126,217	)			(119,013	)			(115,691	)
Pre-tax income (FTE)		222,606				220,284				213,218				210,894				170,469
FTE adjustment		(2,632	)			(2,602	)			(2,603	)			(2,383	)			(2,151	)
Provision for income taxes		(46,144	)			(45,717	)			(40,703	)			(45,686	)			(35,969	)
Noncontrolling interest		(37	)			(1	)			(12	)			54				—
Preferred stock dividend		(4,047	)			(4,047	)			(4,047	)			(4,047	)			(4,047	)
Net income available to common stockholders	$	169,746			$	167,917			$	165,853			$	158,832			$	128,302
Earnings per common share – diluted	$	1.49			$	1.47			$	1.41			$	1.34			$	1.08
Pre-tax pre-provision net revenue(1)	$	264,010			$	259,456			$	246,444			$	241,019			$	208,089
Selected balance sheet data at period end:
Total assets	$	32,767,328			$	30,761,870			$	28,971,170			$	27,656,568			$	26,232,119
Non-purchased loans		25,051,214				23,291,785				21,700,941				20,400,154				19,103,546
Purchased loans		280,526				315,661				361,065				378,637				410,166
Investment securities – AFS		3,153,817				3,262,366				3,422,031				3,491,613				3,528,077
Deposits		25,552,856				23,983,397				22,282,983				21,500,143				20,401,876
Unfunded balance of closed loans		20,625,371				21,119,761				20,965,040				21,062,733				20,091,101
Allowance for credit losses:
Balance at beginning of period	$	426,820			$	393,767			$	365,277			$	335,635			$	299,938
Net charge-offs		(9,370	)			(8,721	)			(7,339	)			(2,866	)			(4,074	)
Provision for credit losses		44,036				41,774				35,829				32,508				39,771
Balance at end of period	$	461,486			$	426,820			$	393,767			$	365,277			$	335,635
Allowance for loan losses	$	303,358			$	263,188			$	222,025			$	208,858			$	200,098
Reserve for losses on unfunded loan commitments		158,128				163,632				171,742				156,419				135,537
Total allowance for credit losses	$	461,486			$	426,820			$	393,767			$	365,277			$	335,635
Selected ratios:
Net interest margin – FTE(2)		5.05	%			5.32	%			5.54	%			5.46	%			5.03	%
Efficiency ratio		32.60				33.05				33.63				32.84				35.50
Net charge-offs to average non-purchased loans(2) (3)		0.17				0.03				0.15				0.09				0.09
Net charge-offs to average total loans(2)		0.15				0.15				0.14				0.06				0.09
Nonperforming loans to total loans(4)		0.25				0.15				0.15				0.22				0.14
Nonperforming assets to total assets(4)		0.40				0.32				0.34				0.19				0.13
Allowance for loan losses to total loans(5)		1.20				1.11				1.01				1.01				1.03
Allowance for credit losses to total loans and unfunded loan commitments		1.00				0.95				0.92				0.87				0.85
Loans past due 30 days or more, including past due non-accrual loans, to total loans(4)		0.21				0.14				0.15				0.13				0.11

(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 OZK
Average Consolidated Balance Sheets and Net Interest Analysis – FTE
Unaudited
	Three Months Ended September 30,																		Nine Months Ended September 30,
	2023									2022									2023									2022
	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	$	1,312,533		$	17,061		5.16	%		$	699,489		$	3,690		2.09	%		$	1,005,263		$	36,338		4.83	%		$	1,023,707		$	6,155		0.80	%
Investment securities:
Taxable		2,243,378			9,887		1.75				2,809,479			10,269		1.45				2,351,707			29,761		1.69				3,080,645			31,246		1.36
Tax-exempt – FTE		1,031,685			12,068		4.64				907,955			9,020		3.94				1,033,430			35,807		4.63				706,628			17,889		3.38
Non-purchased loans – FTE		24,162,671			523,124		8.59				18,544,681			295,311		6.32				22,472,789			1,410,764		8.39				18,413,106			792,025		5.75
Purchased loans		298,817			6,005		7.97				429,312			7,148		6.61				338,537			17,845		7.05				464,205			24,300		7.00
Total earning assets – FTE		29,049,084			568,145		7.76				23,390,916			325,438		5.52				27,201,726			1,530,515		7.52				23,688,291			871,615		4.92
Non-interest earning assets		2,557,808									2,474,862									2,554,214									2,460,424
Total assets	$	31,606,892								$	25,865,778								$	29,755,940								$	26,148,715
LIABILITIES AND STOCKHOLDERS’ EQUITY
Interest bearing liabilities:
Deposits:
Savings and interest bearing transaction	$	8,806,690		$	56,169		2.53	%		$	9,614,806		$	13,639		0.56	%		$	9,201,712		$	147,334		2.14	%		$	9,611,716		$	21,801		0.30	%
Time deposits		11,606,189			122,654		4.19				5,232,727			8,358		0.63				9,621,410			261,243		3.63				5,464,267			19,542		0.48
Total interest bearing deposits		20,412,879			178,823		3.48				14,847,533			21,997		0.59				18,823,122			408,577		2.90				15,075,983			41,343		0.37
Other borrowings		1,048,566			14,326		5.42				517,161			2,460		1.89				783,566			30,339		5.20				647,083			4,500		0.93
Subordinated notes		347,456			2,631		3.00				346,642			2,631		3.01				347,254			7,808		3.01				346,433			7,808		3.01
Subordinated debentures		121,652			2,472		8.06				121,382			1,582		5.17				121,647			7,017		7.71				121,239			3,741		4.13
Total interest bearing liabilities		21,930,553			198,252		3.59				15,832,718			28,670		0.72				20,075,589			453,741		3.02				16,190,738			57,392		0.47
Non-interest bearing liabilities:
Non-interest bearing deposits		4,294,191									4,998,392									4,370,763									4,915,023
Other non-interest bearing liabilities		495,147									395,671									499,163									359,327
Total liabilities		26,719,891									21,226,781									24,945,515									21,465,088
Total stockholders’ equity before noncontrolling interest		4,885,620									4,635,887									4,809,053									4,680,513
Noncontrolling interest		1,381									3,110									1,372									3,114
Total liabilities and stockholders’ equity	$	31,606,892								$	25,865,778								$	29,755,940								$	26,148,715
Net interest income – FTE				$	369,893								$	296,768								$	1,076,774								$	814,223
Net interest margin – FTE							5.05	%								5.03	%								5.29	%								4.60	%
Core spread(1)							5.11	%								5.73	%								5.49	%								5.38	%

(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,				September 30,				June 30,				September 30,				September 30,
	2023				2022				2023				2023				2022
	(Dollars in thousands)
Net income available to common stockholders	$	169,746			$	128,302			$	167,917			$	503,517			$	388,688
Average stockholders’ equity before noncontrolling interest	$	4,885,620			$	4,635,887			$	4,788,584			$	4,809,053			$	4,680,513
Less average preferred stock		(338,980	)			(338,980	)			(338,980	)			(338,980	)			(338,980	)
Total average common stockholders’ equity		4,546,640				4,296,907				4,449,604				4,470,073				4,341,533
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	)			(999	)			(1,098	)			(6,124	)
Total average intangibles		(660,789	)			(665,536	)			(661,788	)			(661,887	)			(666,913	)
Average tangible common stockholders’ equity	$	3,885,851			$	3,631,371			$	3,787,816			$	3,808,186			$	3,674,620
Return on average common stockholders’ equity(1)		14.81	%			11.85	%			15.14	%			15.06	%			11.97	%
Return on average tangible common stockholders’ equity(1)		17.33	%			14.02	%			17.78	%			17.68	%			14.14	%

(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,								December 31,
	2023				2022				2022
	(In thousands, except per share amounts)
Total stockholders’ equity before noncontrolling interest	$	4,903,504			$	4,539,424			$	4,689,579
Less preferred stock		(338,980	)			(338,980	)			(338,980	)
Total common stockholders’ equity	$	4,564,524			$	4,200,444			$	4,350,599
Less intangible assets:
Goodwill		(660,789	)			(660,789	)			(660,789	)
Core deposit and other intangible assets, net of accumulated amortization		—				(3,943	)			(2,754	)
Total intangibles		(660,789	)			(664,732	)			(663,543	)
Total tangible common stockholders’ equity	$	3,903,735			$	3,535,712			$	3,687,056
Shares of common stock outstanding		113,136				117,762				117,177
Book value per common share	$	40.35			$	35.67			$	37.13
Tangible book value per common share	$	34.50			$	30.02			$	31.47

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,
	2023				2022
	(Dollars in thousands)
Total stockholders’ equity before noncontrolling interest	$	4,903,504			$	4,539,424
Less preferred stock		(338,980	)			(338,980	)
Total common stockholders’ equity	$	4,564,524			$	4,200,444
Less intangible assets:
Goodwill		(660,789	)			(660,789	)
Core deposit and other intangible assets, net of accumulated amortization		—				(3,943	)
Total intangibles		(660,789	)			(664,732	)
Total tangible common stockholders’ equity		3,903,735				3,535,712
Total assets	$	32,767,328			$	26,232,119
Less intangible assets:
Goodwill	$	(660,789	)		$	(660,789	)
Core deposit and other intangible assets, net of accumulated amortization		—				(3,943	)
Total intangibles		(660,789	)			(664,732	)
Total tangible assets	$	32,106,539			$	25,567,387
Ratio of total common stockholders’ equity to total assets		13.93	%			16.01	%
Ratio of total tangible common stockholders’ equity to total tangible assets		12.16	%			13.83	%

Calculation of Pre-Tax Pre-Provision Net Revenue
Unaudited
	Three Months Ended																Nine Months Ended
	Sept 30,			June 30,			March 31,			December 31,				Sept 30,			September 30,
	2023			2023			2023			2022				2022			2023			2022
	(Dollars in thousands)
Net income available to common stockholders	$	169,746		$	167,917		$	165,853		$	158,832			$	128,302		$	503,517		$	388,688
Preferred stock dividends		4,047			4,047			4,047			4,047				4,047			12,141			12,574
Earnings attributable to noncontrolling interest		37			1			12			(54	)			—			50			3
Provision for income taxes		46,144			45,717			40,703			45,686				35,969			132,564			111,754
Provision for credit losses		44,036			41,774			35,829			32,508				39,771			121,638			50,986
Pre-tax pre-provision net revenue	$	264,010		$	259,456		$	246,444		$	241,019			$	208,089		$	769,910		$	564,005

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