• Bank OZK Announces Record Fourth Quarter and Full Year 2021 Earnings

    المصدر: Nasdaq GlobeNewswire / 20 يناير 2022 16:01:01   America/New_York

    LITTLE ROCK, Arkansas, Jan. 20, 2022 (GLOBE NEWSWIRE) -- Bank OZK (the “Bank”) (Nasdaq: OZK) today announced that net income for the fourth quarter of 2021 was $149.8 million, a 24.3% increase from $120.5 million for the fourth quarter of 2020. Diluted earnings per common share for the fourth quarter of 2021 were a quarterly record $1.17, a 25.8% increase from $0.93 for the fourth quarter of 2020.

    For the full year of 2021, net income was a record $579.0 million, a 98.4% increase from $291.9 million for the full year of 2020. Diluted earnings per common share for the full year of 2021 were a record $4.47, a 97.8% increase from $2.26 for the full year of 2020.

    As a result of improved economic conditions and prospects for improvement in the U. S. economy, management recorded negative provision for credit losses of $8.0 million during the fourth quarter and $77.9 million for the full year of 2021, reducing the Bank’s total allowance for credit losses (“ACL”) from $377.3 million at December 31, 2020 to $289.0 million at December 31, 2021. The Bank’s provision for credit losses was $6.8 million during the fourth quarter and $203.6 million for the full year of 2020.

    Pre-tax pre-provision net revenue (“PPNR”) was $186.0 million for the fourth quarter of 2021, a 14.2% increase from $162.9 million for the fourth quarter of 2020. PPNR was $675.0 million for the full year of 2021, a 16.4% increase from $579.8 million for the full year of 2020. The calculation of PPNR and the reconciliation to generally accepted accounting principles (“GAAP”) are included in the schedules accompanying this release.

    The Bank’s annualized returns on average assets, average common stockholders’ equity and average tangible common stockholders’ equity for the fourth quarter of 2021 were 2.25%, 13.08% and 15.34%, respectively, compared to 1.79%, 11.36% and 13.53%, respectively, for the fourth quarter of 2020. The Bank’s returns on average assets, average common stockholder’s equity and average tangible common stockholders’ equity for the full year of 2021 were 2.17%, 13.01% and 15.32%, respectively, compared to 1.13%, 7.04% and 8.41%, respectively, for the full year of 2020. The calculation of the Bank’s returns on average common stockholders’ equity and average tangible common stockholders’ equity and the reconciliations to GAAP are included in the schedules accompanying this release.

    George Gleason, Chairman and Chief Executive Officer stated, “We are pleased to report our excellent results for the fourth quarter and full year of 2021 – results that were record setting in many respects. We were particularly pleased to report our highest ever level of quarterly RESG loan originations, as organic growth is an important component of our long-term strategy to increase shareholder value. Our strong capital and liquidity, disciplined credit culture and outstanding team have us well positioned for the future.”

    KEY BALANCE SHEET METRICS

    Total loans were $18.31 billion at December 31, 2021, a 4.7% decrease from $19.21 billion at December 31, 2020. Non-purchased loans were $17.79 billion at December 31, 2021, a 3.3% decrease from $18.40 billion at December 31, 2020. Purchased loans, which consist of loans acquired in previous acquisitions, were $0.52 billion at December 31, 2021, a 36.1% decrease from $0.81 billion at December 31, 2020.

    Deposits were $20.21 billion at December 31, 2021, a 5.8% decrease from $21.45 billion at December 31, 2020. Total assets were $26.53 billion at December 31, 2021, a 2.3% decrease from $27.16 billion at December 31, 2020.

    Common stockholders’ equity was $4.50 billion at December 31, 2021, a 5.3% increase from $4.27 billion at December 31, 2020. Tangible common stockholders’ equity was $3.83 billion at December 31, 2021, a 6.4% increase from $3.60 billion at December 31, 2020. Book value per common share was $35.85 at December 31, 2021, an 8.5% increase from $33.03 at December 31, 2020. Tangible book value per common share was $30.52 at December 31, 2021, a 9.7% increase from $27.81 at December 31, 2020. The calculations of the Bank’s common stockholders’ equity, tangible common stockholders’ equity and tangible book value per common share and the reconciliations to GAAP are included in the schedules accompanying this release.

    The Bank’s ratio of total common stockholders’ equity to total assets was 16.95% at December 31, 2021, compared to 15.73% at December 31, 2020. Its ratio of total tangible common stockholders’ equity to total tangible assets was 14.80% at December 31, 2021, compared to 13.58% at December 31, 2020. The calculation of the Bank’s ratio of total tangible common stockholders’ equity to total tangible assets and the reconciliation to GAAP are included in the schedules accompanying this release.

    PREFERRED STOCK OFFERING

    On November 4, 2021, the Bank completed its public offering of 14,000,000 shares of its 4.625% Series A Non-Cumulative Perpetual Preferred Stock (“Preferred Stock”), par value $0.01 per share, with a liquidation preference of $25 per share, which represents $350 million in aggregate liquidation preference. The Bank received net proceeds from the Preferred Stock, after deducting the initial purchaser discount and offering expenses, of $339.0 million.

    SUBORDINATED DEBT REDEMPTION AND OFFERING

    In July 2021, the Bank redeemed all of its $225 million of 5.50% Fixed-to-Floating rate Subordinated Notes at a redemption price equal to 100% of the principal amount of the subordinated notes plus accrued and unpaid interest. As a result of the subordinated debt redemption, the Bank recognized approximately $0.8 million in remaining unamortized debt issue cost as non-interest expense during the third quarter of 2021.

    In September 2021, the Bank completed its public offering of $350 million in aggregate principal amount of its 2.75% Fixed-to-Floating rate Subordinated Notes (the “2.75% Notes”) due 2031, which bear interest at a fixed rate of 2.75% per annum until September 30, 2026. On October 1, 2026, the 2.75% Notes will bear interest at a floating rate equal to a benchmark (which is expected to be three-month SOFR) plus 209 basis points. The 2.75% Notes are unsecured, subordinated debt obligations and mature on October 1, 2031. As of December 31, 2021, the 2.75% Notes had a carrying value of $346.1 million and remaining unamortized debt issuance cost of $3.9 million.

    STOCK REPURCHASE PROGRAM

    In July 2021, the Bank adopted a stock repurchase program. In conjunction with the Bank’s Preferred Stock offering, its Board of Directors increased the size of its stock repurchase program from $300 million up to $650 million of the Bank’s outstanding common stock. During the quarter just ended, the Bank repurchased 3,387,421 shares at a weighted average cost of $46.16, for a total of $156.4 million. During 2021, the Bank repurchased 4,275,988 shares at a weighted average cost of $45.21, for a total of $193.4 million. The timing and amount of future repurchases will be determined by management based on a variety of factors such as the Bank’s capital position, liquidity, financial performance and alternative uses of capital, stock price, regulatory requirements and general market and economic conditions. The repurchase program may be suspended by the Bank at any time.

    MANAGEMENT’S COMMENTS, CONFERENCE CALL, TRANSCRIPT AND FILINGS

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

    Management will conduct a conference call to take questions on these quarterly results and management’s comments at 10:00 a.m. CT (11:00 a.m. ET) on January 21, 2022. Interested parties may listen to this call by dialing 1-844-818-5110 (U.S. and Canada) or 210-229-8841 (internationally) and asking for the Bank OZK conference call. A recorded playback of the call will be available for one week following the call at 1-855-859-2056 (U.S. and Canada) or 404-537-3406 (internationally). The conference ID for this playback is 5324497. The call will be available live or in a recorded version on the Bank’s Investor Relations website at ir.ozk.com under “Company News/Webcasts.” The Bank will also provide a transcript of the conference call on its Investor Relations website.

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

    NON-GAAP FINANCIAL MEASURES

    This release contains certain non-GAAP financial measures. The Bank uses these non-GAAP financial measures, specifically return on average tangible common stockholders’ equity, tangible book value per common share, total 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 release and other communications by the Bank include certain “forward-looking statements” regarding the Bank’s plans, expectations, thoughts, beliefs, estimates, goals and outlook for the future that are intended to be covered by the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on management’s expectations as well as certain assumptions and estimates made by, and information available to, management at the time. Those statements are not guarantees of future results or performance and are subject to certain known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those expressed in, or implied by, such forward-looking statements. These risks, uncertainties and other factors include, but are not limited to: potential delays or other problems implementing the Bank’s growth, expansion and acquisition strategies, including delays in identifying satisfactory sites, hiring or retaining qualified personnel, obtaining regulatory or other approvals, obtaining permits and designing, constructing and opening new offices or relocating, selling or closing existing offices; the ability to enter into and/or close additional acquisitions; the availability of and access to capital; possible downgrades in the Bank’s credit ratings or outlook which could increase the costs of or decrease the availability of funding from capital markets; the ability to attract new or retain existing or acquired deposits or to retain or grow loans, including growth from unfunded closed loans; the ability to generate future revenue growth or to control future growth in non-interest expense; interest rate fluctuations, including changes in the yield curve between short-term and long-term interest rates or changes in the relative relationships of various interest rate indices; the potential impact of the phase-out of the London Interbank Offered Rate (“LIBOR”) or other changes involving LIBOR; competitive factors and pricing pressures, including their effect on the Bank’s net interest margin or core spread; general economic, unemployment, credit market and real estate market conditions, and the effect of such conditions on the creditworthiness of borrowers, collateral values, the value of investment securities and asset recovery values; changes in legal, financial and/or regulatory requirements; recently enacted and potential legislation and regulatory actions and the costs and expenses to comply with new and/or existing legislation and regulatory actions, including those in response to the COVID-19 pandemic such as the Coronavirus Aid, Relief and Economic Security Act, the Consolidated Appropriations Act of 2021, the American Rescue Plan Act of 2021, and any similar or related laws, rules and regulations; the impact of any future federal government shutdown and uncertainty regarding the federal government’s debt limit or changes in U.S. government monetary and fiscal policy; FDIC special assessments or changes to regular assessments; the ability to keep pace with technological changes, including changes regarding maintaining cybersecurity; the impact of failure in, or breach of, the Bank’s operational or security systems or infrastructure, or those of third parties with whom it does business, including as a result of cyber-attacks or an increase in the incidence or severity of fraud, illegal payments, security breaches or other illegal acts impacting the Bank or its customers; natural disasters or acts of war or terrorism; the adverse effects of the COVID-19 pandemic, including the duration of the pandemic and actions taken to contain or treat COVID-19, on the Bank, the Bank’s customers, the Bank’s staff, the global economy and financial markets; potential impact of supply chain disruptions or inflation; national, international or political instability; impairment of the Bank’s goodwill or other intangible assets; adoption of new accounting standards, or changes in existing standards; and adverse results (including costs, fines, reputational harm and/or other negative effects) from current or future litigation, regulatory examinations or other legal and/or regulatory actions or rulings as well as other factors identified in this press release or as detailed from time to time in the other public reports the Bank files with the FDIC, including those factors described in the disclosures under the headings “Forward-Looking Information” and “Item 1A. Risk Factors” in the Bank’s most recent Annual Report on Form 10-K for the year ended December 31, 2020 and its quarterly reports on Form 10-Q. Should one or more of the foregoing risks materialize, or should underlying assumptions prove incorrect, actual results or outcomes may vary materially from those projected in, or implied by, such forward-looking statements. The Bank disclaims any obligation to update or revise any forward-looking statements based on the occurrence of future events, the receipt of new information or otherwise.

    GENERAL INFORMATION

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

    Investor Contact: Tim Hicks (501) 978-2336
    Media Contact: Candace Graham (501) 320-4165


    Bank OZK
    Consolidated Balance Sheets
    Unaudited

      December 31, 
      2021  2020 
      (Dollars in thousands, except per share amounts) 
    ASSETS        
    Cash and cash equivalents $2,053,829  $2,393,662 
    Investment securities ― available for sale ("AFS")  3,916,733   3,405,351 
    Investment securities ― trading  14,957    
    Federal Home Loan Bank of Dallas and other bankers' bank stocks  40,788   38,486 
    Non-purchased loans  17,791,610   18,401,495 
    Purchased loans  516,215   807,673 
    Allowance for loan losses  (217,380)  (295,824)
    Net loans  18,090,445   18,913,344 
    Premises and equipment, net  695,857   738,842 
    Foreclosed assets  5,744   11,085 
    Accrued interest receivable  83,025   88,077 
    Bank owned life insurance (“BOLI”)  774,822   758,071 
    Goodwill and other intangible assets, net  669,063   675,458 
    Other, net  185,167   140,220 
    Total assets $26,530,430  $27,162,596 
             
    LIABILITIES AND STOCKHOLDERS’ EQUITY        
    Deposits:        
    Demand non-interest bearing $4,983,788  $3,996,546 
    Savings and interest bearing transaction  9,245,727   8,160,982 
    Time  5,979,619   9,292,828 
    Total deposits  20,209,134   21,450,356 
    Repurchase agreements with customers  6,115   8,013 
    Other borrowings  750,206   750,928 
    Subordinated notes  346,133   224,047 
    Subordinated debentures  121,033   120,475 
    Reserve for losses on unfunded loan commitments  71,609   81,481 
    Accrued interest payable and other liabilities  186,840   251,940 
    Total liabilities  21,691,070   22,887,240 
             
    Commitments and contingencies        
             
    Stockholders’ equity:        
    Preferred stock; $0.01 par value; 100,000,000 shares authorized;
    14,000,000 and no shares issued and outstanding at December 31,
    2021 and 2020, respectively
      338,980    
    Common stock; $0.01 par value; 300,000,000 shares authorized;
    125,443,748 and 129,350,448 shares issued and outstanding at
    December 31, 2021 and 2020, respectively
      1,254   1,294 
    Additional paid-in capital  2,093,702   2,265,850 
    Retained earnings  2,378,466   1,946,875 
    Accumulated other comprehensive income  23,841   58,252 
    Total stockholders’ equity before noncontrolling interest  4,836,243   4,272,271 
    Noncontrolling interest  3,117   3,085 
    Total stockholders’ equity  4,839,360   4,275,356 
    Total liabilities and stockholders’ equity $26,530,430  $27,162,596 


    Bank OZK
    Consolidated Statements of Income
    Unaudited

     Three Months Ended
    December 31,
      Year Ended
    December 31,
     
     2021  2020  2021  2020 
     (Dollars in thousands, except per share amounts) 
    Interest income:               
    Non-purchased loans$256,021  $243,064  $972,660  $944,354 
    Purchased loans 11,190   16,069   46,174   70,812 
    Investment securities:               
    Taxable 9,448   9,066   36,234   40,547 
    Tax-exempt 2,869   4,767   13,729   19,403 
    Deposits with banks and federal funds sold 953   428   2,510   5,665 
    Total interest income 280,481   273,394   1,071,307   1,080,781 
                    
    Interest expense:               
    Deposits 9,514   30,607   64,422   171,813 
    Repurchase agreements with customers 3   6   17   23 
    Other borrowings 1,017   1,011   4,012   3,179 
    Subordinated notes 2,631   3,207   9,386   12,758 
    Subordinated debentures 935   963   3,750   4,384 
    Total interest expense 14,100   35,794   81,587   192,157 
                    
    Net interest income 266,381   237,600   989,720   888,624 
    Provision for credit losses (7,992)  6,750   (77,938)  203,639 
    Net interest income after provision for credit losses 274,373   230,850   1,067,658   684,985 
                    
    Non-interest income:               
    Service charges on deposit accounts:               
    NSF/Overdraft fees 4,315   4,024   14,962   14,782 
    All other service charges 7,149   5,959   27,656   22,917 
    Trust income 2,141   1,909   8,506   7,544 
    BOLI income:               
    Increase in cash surrender value 4,901   5,034   19,640   20,239 
    Death benefits 618      2,028   608 
    Loan service, maintenance and other fees 3,148   3,797   13,959   14,257 
    Gains on sales of other assets 1,330   5,189   9,962   6,863 
    Net gains on investment securities 504      504   4,467 
    Other 5,589   2,749   18,321   12,931 
    Total non-interest income 29,695   28,661   115,538   104,608 
                    
    Non-interest expense:               
    Salaries and employee benefits 55,034   53,832   214,567   206,834 
    Net occupancy and equipment 17,004   15,617   66,801   63,379 
    Other operating expenses 38,068   33,945   148,907   143,200 
    Total non-interest expense 110,106   103,394   430,275   413,413 
                    
    Income before taxes 193,962   156,117   752,921   376,180 
    Provision for income taxes 44,197   35,607   173,888   84,314 
    Net income 149,765   120,510   579,033   291,866 
    Earnings attributable to noncontrolling interest (5)  3   (32)  32 
    Net income available to common stockholders$149,760  $120,513  $579,001  $291,898 
                    
    Basic earnings per common share$1.17  $0.93  $4.49  $2.26 
                    
    Diluted earnings per common share$1.17  $0.93  $4.47  $2.26 


    Bank OZK
    Consolidated Statements of Stockholders’ Equity
    Unaudited

      Preferred
    Stock
      Common
    Stock
      Additional
    Paid-In
    Capital
      Retained
    Earnings
      Accumulated
    Other
    Comprehensive
    Income
      Non-
    Controlling
    Interest
      Total 
      (Dollars in thousands, except per share amounts) 
    Three months ended December 31, 2021:                     
    Balances – September 30, 2021 $  $1,288  $2,245,012  $2,266,234  $40,706  $3,112  $4,556,352 
    Net income           149,765         149,765 
    Earnings attributable to noncontrolling
    interest
               (5)     5    
    Total other comprehensive loss              (16,865)     (16,865)
    Common stock dividends, $0.29 per
    share
               (37,528)        (37,528)
    Issuance of 14,000,000 shares of
    preferred stock, net of offering costs
      338,980                  338,980 
    Issuance of 31,400 shares of common
    stock for exercise of stock options
            1,131            1,131 
    Repurchase and cancellation of 3,387,421
    shares of common stock under share
    repurchase program
         (34)  (156,410)           (156,444)
    Stock-based compensation expense        3,969            3,969 
    Forfeitures of 18,050 shares of unvested
    restricted common stock
                         
    Balances – December 31, 2021 $338,980  $1,254  $2,093,702  $2,378,466  $23,841  $3,117  $4,839,360 
                                 
    Year ended December 31, 2021:                            
    Balances – December 31, 2020 $  $1,294  $2,265,850  $1,946,875  $58,252  $3,085  $4,275,356 
    Net income           579,033         579,033 
    Earnings attributable to noncontrolling
    interest
               (32)     32    
    Total other comprehensive loss              (34,411)     (34,411)
    Common stock dividends, $1.1325 per
    share
               (147,410)        (147,410)
    Issuance of 14,000,000 shares of
    preferred stock, net of offering costs
      338,980                  338,980 
    Issuance of 207,650 shares of common
    stock for exercise of stock options
         2   7,224            7,226 
    Issuance of 332,831 shares of unvested
    restricted common stock
         3   (3)            
    Repurchase and cancellation of 4,275,988
    shares of common stock under share
    repurchase program
         (43)  (193,401)           (193,444)
    Repurchase and cancellation of 55,893
    shares of common stock withheld for
    taxes pursuant to restricted stock
    vesting
         (1)  (1,976)           (1,977)
    Stock-based compensation expense        16,007            16,007 
    Forfeitures of 115,300 shares of unvested
    restricted common stock
         (1)  1             
    Balances – December 31, 2021 $338,980  $1,254  $2,093,702  $2,378,466  $23,841  $3,117  $4,839,360 


    Bank OZK
    Consolidated Statements of Stockholders’ Equity
    Unaudited

      Common
    Stock
      Additional
    Paid-In
    Capital
      Retained
    Earnings
      Accumulated
    Other
    Comprehensive
    Income
      Non-
    Controlling
    Interest
      Total 
      (Dollars in thousands, except per share amounts) 
    Three months ended December 31, 2020:                        
    Balances – September 30, 2020 $1,293  $2,261,864  $1,862,012  $61,116  $3,088  $4,189,373 
    Net income        120,510         120,510 
    Earnings attributable to noncontrolling
    interest
            3      (3)   
    Total other comprehensive loss           (2,864)     (2,864)
    Common stock dividends, $0.275 per share        (35,650)        (35,650)
    Issuance of 39,900 shares of common
    stock for exercise of stock options
         991            991 
    Stock-based compensation expense     2,996            2,996 
    Forfeitures of 31,525 shares of unvested
    restricted common stock
      1   (1)            
    Balances – December 31, 2020 $1,294  $2,265,850  $1,946,875  $58,252  $3,085  $4,275,356 
                             
    Year ended December 31, 2020:                        
    Balances – December 31, 2019 $1,289  $2,251,824  $1,869,983  $27,255  $3,117  $4,153,468 
    Cumulative effect of change
    in accounting principle
            (75,344)        (75,344)
    Balances – January 1, 2020  1,289   2,251,824   1,794,639   27,255   3,117   4,078,124 
    Net income        291,866         291,866 
    Earnings attributable to noncontrolling
    interest
            32      (32)   
    Total other comprehensive income           30,997      30,997 
    Common stock dividends,
    $1.0775 per share
            (139,662)        (139,662)
    Issuance of 44,200 shares of common
    stock for exercise of stock options
         1,036            1,036 
    Issuance of 493,761 shares of unvested
    restricted common stock
      5   (5)            
    Repurchase and cancellation of 61,873
    shares of common stock withheld for
    taxes pursuant to restricted stock
    vesting
      (1)  (1,852)           (1,853)
    Stock-based compensation expense     14,848            14,848 
    Forfeitures of 76,664 shares of unvested
    restricted common stock
      1   (1)            
    Balances – December 31, 2020 $1,294  $2,265,850  $1,946,875  $58,252  $3,085  $4,275,356 


    Bank OZK
    Summary of Non-Interest Expense
    Unaudited

      Three Months Ended
    December 31,
      Year Ended
    December 31,
     
      2021  2020  2021  2020 
      (Dollars in thousands) 
    Salaries and employee benefits $55,034  $53,832  $214,567  $206,834 
    Net occupancy and equipment  17,004   15,617   66,801   63,379 
    Other operating expenses:                
    Professional and outside services  7,880   6,988   29,013   29,605 
    Software and data processing  6,165   5,729   23,860   21,279 
    Deposit insurance and assessments  2,125   3,647   11,185   15,247 
    Telecommunication services  2,064   2,296   8,427   9,159 
    Postage and supplies  1,909   1,709   6,627   7,462 
    ATM expense  1,639   1,490   6,255   5,256 
    Travel and meals  1,883   835   5,694   4,336 
    Writedowns of foreclosed and other assets  985   1,582   3,461   3,669 
    Loan collection and repossession expense  587   481   2,044   3,062 
    Advertising and public relations  1,151   1,086   2,772   6,050 
    Amortization of intangibles  1,517   1,794   6,394   9,085 
    Amortization of CRA and tax credit investments  2,755   821   15,078   8,279 
    Other  7,408   5,487   28,097   20,711 
    Total non-interest expense $110,106  $103,394  $430,275  $413,413 


    Bank OZK
    Summary of Total Loans Outstanding
    Unaudited

      December 31, 
      2021  2020 
      (Dollars in thousands) 
    Real estate:                
    Residential 1-4 family $887,024   4.8% $911,115   4.7%
    Non-farm/non-residential  3,782,892   20.7   4,267,147   22.2 
    Construction/land development  8,246,674   45.0   7,993,467   41.6 
    Agricultural  247,727   1.4   204,868   1.1 
    Multifamily residential  934,845   5.1   856,297   4.5 
    Total real estate  14,099,162   77.0   14,232,894   74.1 
    Commercial and industrial  510,784   2.8   842,206   4.4 
    Consumer  2,185,429   11.9   2,393,964   12.5 
    Other  1,512,450   8.3   1,740,104   9.0 
    Total loans  18,307,825   100.0%  19,209,168   100.0%
    Allowance for loan losses  (217,380)      (295,824)    
    Net loans $18,090,445      $18,913,344     


    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 December 31, 2021:            
    Balances – September 30, 2021 $237,722  $61,076  $298,798 
    Net charge-offs  (1,817)     (1,817)
    Provision for credit losses  (18,525)  10,533   (7,992)
    Balances – December 31, 2021 $217,380  $71,609  $288,989 
                 
    Year ended December 31, 2021:            
    Balances – December 31, 2020 $295,824  $81,481  $377,305 
    Net charge-offs  (10,378)     (10,378)
    Provision for credit losses  (68,066)  (9,872)  (77,938)
    Balances – December 31, 2021 $217,380  $71,609  $288,989 
                 
    Three months ended December 31, 2020:            
    Balances – September 30, 2020 $308,847  $68,426  $377,273 
    Net charge-offs  (6,718)     (6,718)
    Provision for credit losses  (6,305)  13,055   6,750 
    Balances – December 31, 2020 $295,824  $81,481  $377,305 
                 
    Year ended December 31, 2020:            
    Balances – December 31, 2019 $108,525  $  $108,525 
    Adoption of CECL (1) methodology  39,588   54,924   94,512 
    Balances – January 1, 2020  148,113   54,924   203,037 
    Net charge-offs  (29,371)     (29,371)
    Provision for credit losses  177,082   26,557   203,639 
    Balances – December 31, 2020 $295,824  $81,481  $377,305 

    (1) Current Expected Credit Loss.

    Bank OZK
    Summary of Deposits – By Account Type
    Unaudited

      December 31, 
      2021  2020 
      (Dollars in thousands) 
    Non-interest bearing $4,983,788   24.7% $3,996,546   18.6%
    Interest bearing:                
    Transaction (NOW)  3,412,369   16.9   3,124,007   14.6 
    Savings and money market  5,833,358   28.9   5,036,975   23.5 
    Time deposits less than $100  1,801,454   8.9   3,075,845   14.3 
    Time deposits of $100 or more  4,178,165   20.6   6,216,983   29.0 
    Total deposits $20,209,134   100.0% $21,450,356   100.0%


    Summary of Deposits – By Customer Type
    Unaudited

      December 31, 
      2021  2020 
      (Dollars in thousands) 
    Non-Interest Bearing $4,983,788   24.7% $3,996,546   18.6%
    Interest Bearing:                
    Consumer and Commercial:                
    Consumer – Non-Time  4,334,378   21.4   3,506,014   16.3 
    Consumer – Time  4,318,742   21.4   6,511,664   30.4 
    Commercial – Non-Time  2,634,817   13.0   2,178,253   10.2 
    Commercial – Time  905,347   4.5   1,137,040   5.3 
    Public Funds  2,094,800   10.4   2,004,593   9.3 
    Brokered  452,137   2.2   1,600,116   7.5 
    Reciprocal  485,125   2.4   516,130   2.4 
    Total deposits $20,209,134   100.0% $21,450,356   100.0%


    Bank OZK
    Selected Consolidated Financial Data
    Unaudited

      Three Months Ended
    December 31,
      Year Ended
    December 31,
     
      2021  2020  % Change  2021  2020  % Change 
      (Dollars in thousands, except per share amounts) 
    Income statement data:                        
    Net interest income $266,381  $237,600   12.1% $989,720  $888,624   11.4%
    Provision for credit losses  (7,992)  6,750   (218.4)  (77,938)  203,639   (138.3)
    Non-interest income  29,695   28,661   3.6   115,538   104,608   10.4 
    Non-interest expense  110,106   103,394   6.5   430,275   413,413   4.1 
    Net income available to common stockholders  149,760   120,513   24.3   579,001   291,898   98.4 
    Pre-tax pre-provision net revenue (1)  185,970   162,867   14.2   674,983   579,819   16.4 
    Common share and per common share data:                        
    Net income per share − diluted $1.17  $0.93   25.8% $4.47  $2.26   97.8%
    Net income per share − basic  1.17   0.93   25.8   4.49   2.26   98.7 
    Dividends per share  0.29   0.275   5.5   1.1325   1.0775   5.1 
    Book value per share  35.85   33.03   8.5   35.85   33.03   8.5 
    Tangible book value per share (1)  30.52   27.81   9.7   30.52   27.81   9.7 
    Weighted-average diluted shares outstanding (thousands)  128,246   129,523   (1.0)  129,618   129,435   0.1 
    End of period shares outstanding (thousands)  125,444   129,350   (3.0)  125,444   129,350   (3.0)
    Balance sheet data at period end:                        
    Total assets $26,530,430  $27,162,596   (2.3)% $26,530,430  $27,162,596   (2.3)%
    Total loans  18,307,825   19,209,168   (4.7)  18,307,825   19,209,168   (4.7)
    Non-purchased loans  17,791,610   18,401,495   (3.3)  17,791,610   18,401,495   (3.3)
    Purchased loans  516,215   807,673   (36.1)  516,215   807,673   (36.1)
    Allowance for loan losses  217,380   295,824   (26.5)  217,380   295,824   (26.5)
    Foreclosed assets  5,744   11,085   (48.2)  5,744   11,085   (48.2)
    Investment securities − AFS  3,916,733   3,405,351   15.0   3,916,733   3,405,351   15.0 
    Goodwill and other intangible assets, net  669,063   675,458   (0.9)  669,063   675,458   (0.9)
    Deposits  20,209,134   21,450,356   (5.8)  20,209,134   21,450,356   (5.8)
    Other borrowings  750,206   750,928   (0.1)  750,206   750,928   (0.1)
    Subordinated notes  346,133   224,047   54.5   346,133   224,047   54.5 
    Subordinated debentures  121,033   120,475   0.5   121,033   120,475   0.5 
    Unfunded balance of closed loans  13,619,578   11,847,117   15.0   13,619,578   11,847,117   15.0 
    Reserve for losses on unfunded loan commitments  71,609   81,481   (12.11)  71,609   81,481   (12.11)
    Preferred stock  338,980     NM   338,980     NM 
    Total common stockholders’ equity (1)  4,497,263   4,272,271   5.3   4,497,263   4,272,271   5.3 
    Net unrealized gains on investment securities AFS
    included in stockholders’ equity
      23,841   58,252       23,841   58,252     
    Loan (including purchased loans) to deposit ratio  90.59%  89.55%      90.59%  89.55%    
    Selected ratios:                        
    Return on average assets (2)  2.25%  1.79%      2.17%  1.13%    
    Return on average common stockholders’ equity (1) (2)  13.08   11.36       13.01   7.04     
    Return on average tangible common stockholders’ equity (1) (2)  15.34   13.53       15.32   8.41     
    Net interest margin – FTE (2)  4.41   3.88       4.09   3.81     
    Efficiency ratio  37.06   38.61       38.76   41.37     
    Net charge-offs to average non-purchased loans (2) (3)  0.05   0.14       0.06   0.09     
    Net charge-offs to average total loans (2)  0.04   0.14       0.06   0.16     
    Nonperforming loans to total loans (4)  0.19   0.25       0.19   0.25     
    Nonperforming assets to total assets (4)  0.15   0.21       0.15   0.21     
    Allowance for loan losses to total loans (5)  1.19   1.54       1.19   1.54     
    Other information:                        
    Non-accrual loans (4) $33,274  $44,402      $33,274  $44,402     
    Accruing loans − 90 days past due (4)                    
    Troubled and restructured non-purchased loans − accruing (4)  1,285   1,483       1,285   1,483     


    (1) Calculations of pre-tax pre-provision net revenue, total common stockholders’ equity, tangible book value per common share and returns on average common stockholders’ equity and average tangible common stockholders’ equity and the reconciliations to GAAP are included in the schedules accompanying this release.
    (2) Ratios for interim periods annualized based on actual days.
    (3) Excludes purchased loans and net charge-offs related to such loans.
    (4) Excludes purchased loans, except for their inclusion in total assets.
    (5) Excludes reserve for losses on unfunded loan commitments.
    NM – Not meaningful


    Selected Consolidated Financial Data (continued)
    Unaudited

      Three Months Ended 
      December 31,  September 30,     
      2021  2021  % Change 
     (Dollars in thousands, except per share amounts) 
    Income statement data:            
    Net interest income $266,381  $247,957   7.4%
    Provision for credit losses  (7,992)  (7,454)  7.2 
    Non-interest income  29,695   25,984   14.3 
    Non-interest expense  110,106   110,397   (0.3)
    Net income available to common stockholders  149,760   130,290   14.9 
    Pre-tax pre-provision net revenue (1)  185,970   163,544   13.7 
    Common share and per common share data:            
    Earnings per share − diluted $1.17  $1.00   17.0%
    Earnings per share − basic  1.17   1.01   15.8 
    Dividends per share  0.29   0.285   1.8 
    Book value per share  35.85   35.35   1.4 
    Tangible book value per share (1)  30.52   30.14   1.3 
    Weighted-average diluted shares outstanding (thousands)  128,246   129,929   (1.3)
    End of period shares outstanding (thousands)  125,444   128,818   (2.6)
    Balance sheet data at period end:            
    Total assets $26,530,430  $26,143,367   1.5%
    Total loans  18,307,825   18,305,303   0.1 
    Non-purchased loans  17,791,610   17,707,452   0.5 
    Purchased loans  516,215   597,851   (13.7)
    Allowance for loan losses  217,380   237,722   (8.6)
    Foreclosed assets  5,744   9,444   (39.2)
    Investment securities − AFS  3,916,733   3,846,496   1.8 
    Goodwill and other intangible assets, net  669,063   670,580   (0.2)
    Deposits  20,209,134   20,102,440   0.5 
    Other borrowings  750,206   750,217   (0.1)
    Subordinated notes  346,133   345,927   0.1 
    Subordinated debentures  121,033   120,892   0.1 
    Unfunded balance of closed loans  13,619,578   12,385,369   10.0 
    Reserve for losses on unfunded loan commitments  71,609   61,076   17.2 
    Preferred stock  338,980     NM 
    Total common stockholders’ equity (1)  4,497,263   4,553,240   (1.2)
    Net unrealized gains on investment securities AFS
    included in stockholders’ equity
      23,841   40,706     
    Loan (including purchased loans) to deposit ratio  90.59%  91.06%    
    Selected ratios:            
    Return on average assets (2)  2.25%  1.98%    
    Return on average common stockholders’ equity (1) (2)  13.08   11.41     
    Return on average tangible common stockholders’ equity (1) (2)  15.34   13.39     
    Net interest margin – FTE (2)  4.41   4.16     
    Efficiency ratio  37.06   40.14     
    Net charge-offs to average non-purchased loans (2) (3)  0.05   0.04     
    Net charge-offs to average total loans (2)  0.04   0.03     
    Nonperforming loans to total loans (4)  0.19   0.20     
    Nonperforming assets to total assets (4)  0.15   0.17     
    Allowance for loan losses to total loans (5)  1.19   1.30     
    Other information:            
    Non-accrual loans (4) $33,274  $34,920     
    Accruing loans − 90 days past due (4)          
    Troubled and restructured non-purchased loans − accruing (4)  1,285   1,253     

    (1)  Calculations of pre-tax pre-provision net revenue, total common stockholders’ equity, tangible book value per common share and returns on average common stockholders’ equity and average tangible common stockholders’ equity and the reconciliations to GAAP are included in the schedules accompanying this release.
    (2)  Ratios for interim periods annualized based on actual days.
    (3)  Excludes purchased loans and net charge-offs related to such loans.
    (4)  Excludes purchased loans, except for their inclusion in total assets.
    (5)  Excludes reserve for losses on unfunded loan commitments.
    NM – Not meaningful  

    Bank OZK
    Supplemental Quarterly Financial Data
    Unaudited

      3/31/20  6/30/20  9/30/20  12/31/20  3/31/21  6/30/21  9/30/21  12/31/21 
      (Dollars in thousands) 
    Earnings Summary:                                
    Net interest income $209,775  $216,593  $224,657  $237,600  $234,636  $240,746  $247,957  $266,381 
    Federal tax (FTE) adjustment  1,133   1,753   1,605   1,533   1,275   1,355   1,106   1,009 
    Net interest income (FTE)  210,908   218,346   226,262   239,133   235,911   242,101   249,063   267,390 
    Provision for credit losses  (117,663)  (72,026)  (7,200)  (6,750)  31,559   30,932   7,454   7,992 
    Non-interest income  27,680   21,591   26,676   28,661   32,117   27,742   25,984   29,695 
    Non-interest expense  (103,425)  (100,953)  (105,641)  (103,394)  (106,059)  (103,711)  (110,397)  (110,106)
    Pretax income (FTE)  17,500   66,958   140,097   157,650   193,528   197,064   172,104   194,971 
    FTE adjustment  (1,133)  (1,753)  (1,605)  (1,533)  (1,275)  (1,355)  (1,106)  (1,009)
    Provision for income taxes  (4,509)  (14,948)  (29,251)  (35,607)  (43,818)  (45,161)  (40,713)  (44,197)
    Noncontrolling interest  8   9   12   3   (19)  (13)  5   (5)
    Net income available to common stockholders $11,866  $50,266  $109,253  $120,513  $148,416  $150,535  $130,290  $149,760 
    Earnings per common share – diluted $0.09  $0.39  $0.84  $0.93  $1.14  $1.16  $1.00  $1.17 
    PPNR  134,030   137,231   145,692   162,867   160,694   164,777   163,544   185,970 
    Non-interest Income:                                
    Service charges on deposit accounts:                                
                NSF/Overdraft fees $4,562  $2,702  $3,494  $4,024  $3,323  $3,244  $4,080  $4,315 
                 All other service charges  5,447   5,579   5,933   5,959   6,342   7,067   7,097   7,149 
    Trust income  1,939   1,759   1,936   1,909   2,206   1,911   2,247   2,141 
    BOLI income:                                
    Increase in cash surrender value  5,067   5,057   5,081   5,034   4,881   4,919   4,940   4,901 
    Death benefits  608            1,409         618 
    Loan service, maintenance and other fees  3,716   3,394   3,351   3,797   3,551   3,953   3,307   3,148 
    Gains on sales of other assets  161   621   891   5,189   5,828   2,341   463   1,330 
    Net gains on investment securities  2,223      2,244               504 
    Other  3,957   2,479   3,746   2,749   4,577   4,307   3,850   5,589 
    Total non-interest income $27,680  $21,591  $26,676  $28,661  $32,117  $27,742  $25,984  $29,695 
    Non-interest Expense:                                
    Salaries and employee benefits $51,473  $48,410  $53,119  $53,832  $53,645  $52,119  $53,769  $55,034 
    Net occupancy and equipment  15,330   15,756   16,676   15,617   16,468   16,168   17,161   17,004 
    Other operating expenses  36,622   36,787   35,846   33,945   35,946   35,424   39,467   38,068 
    Total non-interest expense $103,425  $100,953  $105,641  $103,394  $106,059  $103,711  $110,397  $110,106 
    Balance Sheet Data:                                
    Total assets $24,565,810  $26,380,409  $26,888,308  $27,162,596  $27,276,892  $26,605,938  $26,143,367  $26,530,430 
    Non-purchased loans  17,030,378   18,247,431   18,419,958   18,401,495   17,979,435   17,611,848   17,707,452   17,791,610 
    Purchased loans  1,197,826   1,063,647   938,485   807,673   735,630   659,822   597,851   516,215 
    Investment securities – AFS  2,816,556   3,299,944   3,468,243   3,405,351   4,162,479   4,693,396   3,846,496   3,916,733 
    Deposits  18,809,190   20,723,598   21,287,405   21,450,356   21,296,442   20,706,777   20,102,440   20,209,134 
    Unfunded balance of closed loans  11,334,737   11,411,441   11,604,614   11,847,117   11,780,099   11,709,818   12,385,369   13,619,578 
    Preferred stock                       338,980 
    Total stockholders' equity before noncontrolling interest  4,083,150   4,110,666   4,186,285   4,272,271   4,383,205   4,501,676   4,553,240   4,836,243 


    Bank OZK
    Supplemental Quarterly Financial Data (Continued)
    Unaudited

      3/31/20  6/30/20  9/30/20  12/31/20  3/31/21  6/30/21  9/30/21  12/31/21 
     (Dollars in thousands) 
    Allowance for Credit Losses:                                
    Balance at beginning of period $108,525  $316,409  $374,494  $377,273  $377,305  $342,307  $307,564  $298,798 
    Adoption of CECL (1) methodology  94,512                      
    Net charge-offs  (4,291)  (13,941)  (4,421)  (6,718)  (3,439)  (3,811)  (1,312)  (1,817)
    Provision for credit losses  117,663   72,026   7,200   6,750   (31,559)  (30,932)  (7,454)  (7,992)
    Balance at end of period $316,409  $374,494  $377,273  $377,305  $342,307  $307,564  $298,798  $288,989 
    Allowance for loan losses $238,737  $306,196  $308,847  $295,824  $268,077  $248,753  $237,722  $217,380 
    Reserve for losses on unfunded loan commitments  77,672   68,298   68,426   81,481   74,230   58,811   61,076   71,609 
    Total allowance for credit losses $316,409  $374,494  $377,273  $377,305  $342,307  $307,564  $298,798  $288,989 
    Selected Ratios:                                
    Net interest margin – FTE (2)  3.96%  3.74%  3.69%  3.88%  3.86%  3.95%  4.16%  4.41%
    Efficiency ratio  43.35   42.07   41.77   38.61   39.57   38.43   40.14   37.06 
    Net charge-offs to average non-purchased loans (2) (3)  0.08   0.05   0.09   0.14   0.08   0.09   0.04   0.05 
    Net charge-offs to average total loans (2)  0.10   0.29   0.09   0.14   0.07   0.08   0.03   0.04 
    Nonperforming loans to total loans (4)  0.16   0.18   0.15   0.25   0.25   0.22   0.20   0.19 
    Nonperforming assets to total assets (4)  0.19   0.19   0.17   0.21   0.19   0.18   0.17   0.15 
    Allowance for loan losses to total loans (5)  1.31   1.59   1.60   1.54   1.43   1.36   1.30   1.19 
    Loans past due 30 days or more, including
    past due non-accrual loans, to total loans (4)
      0.18   0.13   0.13   0.16   0.13   0.10   0.13   0.15 

    (1) Current Expected Credit Loss.
    (2) Ratios for interim periods annualized based on actual days.
    (3) Excludes purchased loans and net charge-offs related to such loans.
    (4) Excludes purchased loans, except for their inclusion in total assets.
    (5) Excludes reserve for losses on unfunded loan commitments.


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

      Three Months Ended December 31,  Year Ended December 31, 
      2021  2020  2021  2020 
      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
     $2,106,395 $953 0.18% $1,762,810 $428  0.10% $1,871,388 $2,510  0.13% $1,535,977 $5,665 0.37%
    Investment securities:                                      
    Taxable  3,375,895  9,448 1.11   2,036,253  9,066  1.77   3,207,485  36,234  1.13   1,993,667  40,547 2.03 
    Tax-exempt – FTE  593,242  3,632 2.43   1,485,224  6,034  1.62   864,432  17,378  2.01   1,080,459  24,561 2.27 
    Non-purchased loans – FTE  17,449,281  256,267 5.83   18,378,050  243,330  5.27   17,683,033  973,755  5.51   17,797,684  945,222 5.31 
    Purchased loans  551,917  11,190 8.04   881,372  16,069  7.25   662,434  46,174  6.97   1,069,250  70,812 6.62 
    Total earning assets – FTE  24,076,730  281,490 4.64   24,543,709  274,927  4.46   24,288,772  1,076,051  4.43   23,477,037  1,086,807 4.63 
    Non-interest earning assets  2,370,349        2,258,105         2,335,412         2,291,135      
    Total assets $26,447,079       $26,801,814        $26,624,184        $25,768,172      
    LIABILITIES AND STOCKHOLDERS’ EQUITY                                      
    Interest bearing liabilities:                                      
    Deposits:                                      
    Savings and interest bearing
    transaction
     $9,178,225 $2,641 0.11% $7,669,913 $4,483  0.23% $8,788,200 $12,481  0.14% $7,724,528 $37,428 0.48%
    Time deposits of $100 or more  4,358,217  4,638 0.42   6,314,394  17,144  1.08   5,218,981  35,375  0.68   5,524,751  83,956 1.52 
    Other time deposits  1,898,687  2,235 0.47   3,294,323  8,980  1.08   2,315,263  16,566  0.72   3,511,220  50,429 1.44 
    Total interest bearing deposits  15,435,129  9,514 0.24   17,278,630  30,607  0.70   16,322,444  64,422  0.39   16,760,499  171,813 1.03 
    Repurchase agreements with customers  7,558  3 0.16   8,239  6  0.29   7,027  17  0.24   7,825  23 0.29 
    Other borrowings (1)  750,226  1,017 0.54   750,961  1,011  0.54   750,276  4,012  0.53   721,350  3,179 0.44 
    Subordinated notes  346,025  2,631 3.02   223,996  3,207  5.70   212,600  9,386  4.42   223,850  12,758 5.70 
    Subordinated debentures (1)  120,956  935 3.07   120,400  963  3.18   120,751  3,750  3.11   120,190  4,384 3.65 
    Total interest bearing liabilities  16,659,894  14,100 0.34   18,382,226  35,794  0.77   17,413,098  81,587  0.47   17,833,714  192,157 1.08 
    Non-interest bearing liabilities:                                      
    Non-interest bearing deposits  4,651,656        3,907,955         4,380,850         3,521,066      
    Other non-interest bearing liabilities  376,706        289,298         321,583         261,169      
    Total liabilities  21,688,256        22,579,479         22,115,531         21,615,949      
    Total common stockholders’ equity before
    noncontrolling interest
      4,755,706        4,219,249         4,505,544         4,149,123      
    Noncontrolling interest  3,117        3,086         3,109         3,100      
    Total liabilities and stockholders’
    equity
     $26,447,079       $26,801,814        $26,624,184        $25,768,172      
    Net interest income – FTE    $267,390       $239,133        $994,464        $894,650   
    Net interest margin – FTE       4.41%        3.88%        4.09%       3.81%
    Core spread (2)       5.59%        4.57%        5.12%       4.28%

    (1)   The interest expense and the rates for “other borrowings” and for “subordinated debentures” were affected by capitalized interest. Capitalized interest included in other borrowings for the fourth quarter and for the full year of 2021 was not material compared to $0.03 million for the fourth quarter and $0.68 million for the full year of 2020. In the absence of this interest capitalization, the rates on other borrowings would have been 0.55% for the fourth quarter and 0.53% for the full year of 2020. Capitalized interest included in subordinated debentures totaled $0.01 million for the fourth quarter and $0.18 million for the full year of 2020 (none in the fourth quarter or full year of 2021). In the absence of this interest capitalization, the rates on subordinated debentures would have been 3.20% for the fourth quarter and 3.80% for the full year of 2020.

    (2)   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    
     December 31,  September 30,  Year Ended December 31, 
     2021  2020  2021  2021  2020 
     (Dollars in thousands) 
    Net income available to common
    stockholders
    $149,760  $120,513  $130,290  $579,001  $291,898 
    Average stockholders’ equity before
    noncontrolling interest
    $4,755,706  $4,219,249  $4,530,995  $4,505,544  $4,149,123 
    Less average preferred stock (213,693)        (53,862)   
    Total average common stockholders’
    equity
     4,542,013   4,219,249   4,530,995   4,451,682   4,149,123 
    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
     (9,032)  (15,578)  (10,617)  (11,398)  (18,741)
    Total average intangibles (669,821)  (676,367)  (671,406)  (672,187)  (679,530)
    Average tangible common stockholders’
    equity
    $3,872,192  $3,542,882  $3,859,589  $3,779,495  $3,469,593 
    Return on average common stockholders’
        equity (1)
     13.08%  11.36%  11.41%  13.01%  7.04%
    Return on average tangible common
    stockholders’ equity (1)
     15.34%  13.53%  13.39%  15.32%  8.41%

    (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

      December 31,  September 30, 
      2021  2020  2021 
      (In thousands, except per share amounts) 
    Total stockholders’ equity before noncontrolling interest $4,836,243  $4,272,271  $4,553,240 
    Less preferred stock  (338,980)      
    Total common stockholders’ equity  4,497,263   4,272,271   4,553,240 
    Less intangible assets:            
    Goodwill  (660,789)  (660,789)  (660,789)
    Core deposit and other intangible assets, net of
    accumulated amortization
      (8,274)  (14,669)  (9,791)
    Total intangibles  (669,063)  (675,458)  (670,580)
    Total tangible common stockholders’ equity $3,828,200  $3,596,813  $3,882,660 
    Shares of common stock outstanding  125,444   129,350   128,818 
    Book value per common share $35.85  $33.03  $35.35 
    Tangible book value per common share $30.52  $27.81  $30.14 


    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

      December 31, 
      2021  2020 
      (Dollars in thousands) 
    Total stockholders’ equity before noncontrolling interest $4,836,243  $4,272,271 
    Less preferred stock  (338,980)   
    Total common stockholders’ equity  4,497,263   4,272,271 
    Less intangible assets:        
    Goodwill  (660,789)  (660,789)
    Core deposit and other intangible assets, net of
    accumulated amortization
      (8,274)  (14,669)
    Total intangibles  (669,063)  (675,458)
    Total tangible common stockholders’ equity $3,828,200  $3,596,813 
    Total assets $26,530,430  $27,162,596 
    Less intangible assets:        
    Goodwill  (660,789)  (660,789)
    Core deposit and other intangible assets, net of
    accumulated amortization
      (8,274)  (14,669)
    Total intangibles  (669,063)  (675,458)
    Total tangible assets $25,861,367  $26,487,138 
    Ratio of total common stockholders’ equity to total assets  16.95%  15.73%
    Ratio of total tangible common stockholders’ equity to total
    tangible assets
      14.80%  13.58%


    Calculation of Pre-Tax Pre-Provision Net Revenue
    Unaudited

      Three Months Ended 
      December 31,
    2021
      September 30,
    2021
      June 30,
    2021
      March 31,
    2021
      December 31,
    2020
     
      (Dollars in thousands) 
    Income before taxes $193,962  $170,998  $195,709  $192,253  $156,117 
    Provision for credit losses  (7,992)  (7,454)  (30,932)  (31,559)  6,750 
    Pre-tax pre-provision net revenue $185,970  $163,544  $164,777  $160,694  $162,867 
                         
      Three Months Ended  Year Ended December 31, 
      September 30,
    2020
      June 30,
    2020
      March 31,
    2020
      2021  2020 
      (Dollars in thousands) 
    Income before taxes $138,492  $65,205  $16,367  $752,921  $376,180 
    Provision for credit losses  7,200   72,026   117,663   (77,938)  203,639 
    Pre-tax pre-provision net revenue $145,692  $137,231  $134,030  $674,983  $579,819 


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