Bank OZK Announces Third Quarter 2021 Earnings

LITTLE ROCK, Ark., Oct. 21, 2021 (GLOBE NEWSWIRE) -- Bank OZK (the “Bank”) (Nasdaq: OZK) today announced that net income for the third quarter of 2021 was $130.3 million, a 19.3% increase from $109.3 million for the third quarter of 2020. Diluted earnings per common share for the third quarter of 2021 were $1.00, a 19.0% increase from $0.84 for the third quarter of 2020.

For the nine months ended September 30, 2021, net income was $429.2 million, a 150.5% increase from $171.4 million for the first nine months of 2020. Diluted earnings per common share for the first nine months of 2021 were $3.30, a 150.0% increase from $1.32 for the first nine months 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 $7.5 million during the third quarter and $69.9 million during the first nine months of 2021, reducing the Bank’s total allowance for credit losses (“ACL”) from $377.3 million at December 31, 2020 to $298.8 million at September 30, 2021. The Bank’s provision for credit losses was $7.2 million during the third quarter and $196.9 million during the first nine months of 2020, reflecting significant economic uncertainty at that time.

The Bank’s results for the first nine months of 2021 included pretax gains of $4.4 million from the sale of its South Carolina branches and $1.4 million of tax-exempt bank-owned life insurance (“BOLI”) death benefits, both of which were recognized during the first quarter of 2021. The Bank had no gains from branch sales and had $0.6 million of tax-exempt BOLI death benefits during the first nine months of 2020.

Pre-tax pre-provision net revenue (“PPNR”) was $163.5 million for the third quarter of 2021, a 12.3% increase from $145.7 million for the third quarter of 2020. For the nine months ended September 30, 2021, PPNR was $489.0 million, a 17.3% increase from $417.0 million for the first nine months 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 third quarter of 2021 were 1.98%, 11.41% and 13.39%, respectively, compared to 1.63%, 10.48% and 12.52%, respectively, for the third quarter of 2020. The Bank’s annualized returns on average assets, average common stockholder’s equity and average tangible common stockholders’ equity for the first nine months of 2021 were 2.15%, 12.98% and 15.31%, respectively, compared to 0.90%, 5.55%, and 6.65%, respectively, for the first nine months of 2020. The calculation of the Bank’s return on average tangible common stockholders’ equity and the reconciliation to GAAP are included in the schedules accompanying this release.

George Gleason, Chairman and Chief Executive Officer stated, “We are pleased to report our highest level of quarterly RESG loan originations since 2017 along with record net interest income for the quarter just ended. 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 September 30, 2021, a 5.4% decrease from $19.36 billion at September 30, 2020. Non-purchased loans were $17.71 billion at September 30, 2021, a 3.9% decrease from $18.42 billion at September 30, 2020, but a 0.5% increase from $17.61 billion at June 30, 2021. Purchased loans, which consist of loans acquired in previous acquisitions, were $0.60 billion at September 30, 2021, a 36.3% decrease from $0.94 billion at September 30, 2020.

Deposits were $20.10 billion at September 30, 2021, a 5.6% decrease from $21.29 billion at September 30, 2020. Total assets were $26.14 billion at September 30, 2021, a 2.8% decrease from $26.89 billion at September 30, 2020.

Common stockholders’ equity was $4.55 billion at September 30, 2021, an 8.8% increase from $4.19 billion at September 30, 2020. Tangible common stockholders’ equity was $3.88 billion at September 30, 2021, a 10.6% increase from $3.51 billion at September 30, 2020. Book value per common share was $35.35 at September 30, 2021, a 9.2% increase from $32.37 at September 30, 2020. Tangible book value per common share was $30.14 at September 30, 2021, an 11.1% increase from $27.13 at September 30, 2020. The calculations of the Bank’s tangible common stockholders’ equity and tangible book value per common share and the reconciliations to GAAP are included in the schedules accompanying this release.

The Bank’s ratio of total common stockholders’ equity to total assets was 17.42% at September 30, 2021 compared to 15.57% at September 30, 2020. Its ratio of total tangible common stockholders’ equity to total tangible assets was 15.24% at September 30, 2021 compared to 13.39% at September 30, 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.

SUBORDINATED DEBT REDEMPTION AND OFFERING

On July 1, 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.

On September 16, 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 will initially 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, and the Bank expects to use the net proceeds from the offering for general corporate purposes, which may include, among other things, financing organic growth or strategic acquisitions, repurchase of shares of the Bank’s common stock, supporting the Bank’s regulatory capital levels and ongoing working capital needs. As of September 30, 2021, the Bank’s subordinated debt had a carrying value of $345.9 million and remaining unamortized debt issuance cost of $4.1 million.

STOCK REPURCHASE PROGRAM

In July 2021, the Bank adopted a stock repurchase program authorizing the purchase of up to $300 million of the Bank’s outstanding shares of common stock. During the quarter just ended, the Bank repurchased 888,567 shares at a weighted average cost of $41.61, for a total of $37.0 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 October 22, 2021. 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 8870579. 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 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; 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 through 249 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.

Bank OZK Consolidated Balance Sheets Unaudited
		September 30,				December 31,
		2021				2020
		(Dollars in thousands, except per share amounts)
ASSETS
Cash and cash equivalents		$	1,782,503			$	2,393,662
Investment securities ― available for sale ("AFS")			3,846,496				3,405,351
Federal Home Loan Bank of Dallas and other bankers' bank stocks			40,698				38,486
Non-purchased loans			17,707,452				18,401,495
Purchased loans			597,851				807,673
Allowance for loan losses			(237,722	)			(295,824	)
Net loans			18,067,581				18,913,344
Premises and equipment, net			699,427				738,842
Foreclosed assets			9,444				11,085
Accrued interest receivable			84,358				88,077
Bank owned life insurance (“BOLI”)			770,829				758,071
Goodwill and other intangible assets, net			670,580				675,458
Other, net			171,451				140,220
Total assets		$	26,143,367			$	27,162,596
LIABILITIES AND STOCKHOLDERS’ EQUITY
Deposits:
Demand non-interest bearing		$	4,586,163			$	3,996,546
Savings and interest bearing transaction			8,961,316				8,160,982
Time			6,554,961				9,292,828
Total deposits			20,102,440				21,450,356
Repurchase agreements with customers			7,735				8,013
Other borrowings			750,217				750,928
Subordinated notes			345,927				224,047
Subordinated debentures			120,892				120,475
Reserve for losses on unfunded loan commitments			61,076				81,481
Accrued interest payable and other liabilities			198,728				251,940
Total liabilities			21,587,015				22,887,240
Commitments and contingencies
Stockholders’ equity:
Preferred stock; $0.01 par value; 100,000,000 shares authorized; no shares issued or outstanding at September 30, 2021 or December 31, 2020			—				—
Common stock; $0.01 par value; 300,000,000 shares authorized; 128,817,819 and 129,350,448 shares issued and outstanding at September 30, 2021 and December 31, 2020, respectively			1,288				1,294
Additional paid-in capital			2,245,012				2,265,850
Retained earnings			2,266,234				1,946,875
Accumulated other comprehensive income			40,706				58,252
Total stockholders’ equity before noncontrolling interest			4,553,240				4,272,271
Noncontrolling interest			3,112				3,085
Total stockholders’ equity			4,556,352				4,275,356
Total liabilities and stockholders’ equity		$	26,143,367			$	27,162,596

Bank OZK Consolidated Statements of Income Unaudited
	Three Months Ended September 30,								Nine Months Ended September 30,
	2021				2020				2021				2020
	(Dollars in thousands, except per share amounts)
Interest income:
Non-purchased loans	$	238,258			$	236,621			$	716,639			$	701,290
Purchased loans		11,350				16,269				34,985				54,743
Investment securities:
Taxable		9,236				9,666				26,786				31,480
Tax-exempt		3,296				5,193				10,860				14,636
Deposits with banks and federal funds sold		523				532				1,556				5,237
Total interest income		262,663				268,281				790,826				807,386
Interest expense:
Deposits		12,326				38,273				54,908				141,206
Repurchase agreements with customers		4				4				14				17
Other borrowings		1,013				1,156				2,996				2,168
Subordinated notes		429				3,207				6,755				9,551
Subordinated debentures		934				984				2,814				3,420
Total interest expense		14,706				43,624				67,487				156,362
Net interest income		247,957				224,657				723,339				651,024
Provision for credit losses		(7,454	)			7,200				(69,946	)			196,889
Net interest income after provision for credit losses		255,411				217,457				793,285				454,135
Non-interest income:
Service charges on deposit accounts		11,177				9,427				31,154				27,717
Trust income		2,247				1,936				6,365				5,635
BOLI income:
Increase in cash surrender value		4,940				5,081				14,739				15,205
Death benefits		—				—				1,409				608
Loan service, maintenance and other fees		3,307				3,351				10,811				10,461
Gains on sales of other assets		463				891				8,632				1,674
Net gains on investment securities		—				2,244				—				4,467
Other		3,850				3,746				12,733				10,180
Total non-interest income		25,984				26,676				85,843				75,947
Non-interest expense:
Salaries and employee benefits		53,769				53,119				159,533				153,003
Net occupancy and equipment		17,161				16,676				49,797				47,761
Other operating expenses		39,467				35,846				110,840				109,255
Total non-interest expense		110,397				105,641				320,170				310,019
Income before taxes		170,998				138,492				558,958				220,063
Provision for income taxes		40,713				29,251				129,691				48,707
Net income		130,285				109,241				429,267				171,356
Earnings attributable to noncontrolling interest		5				12				(27	)			29
Net income available to common stockholders	$	130,290			$	109,253			$	429,240			$	171,385
Basic earnings per common share	$	1.01			$	0.84			$	3.31			$	1.33
Diluted earnings per common share	$	1.00			$	0.84			$	3.30			$	1.32

Bank OZK Consolidated Statements of Stockholders’ Equity Unaudited
		Common Stock				Additional Paid-In Capital				Retained Earnings				Accumulated Other Comprehensive Income				Non- Controlling Interest				Total
		(Dollars in thousands, except per share amounts)
Three months ended September 30, 2021:
Balances – June 30, 2021		$	1,297			$	2,277,138			$	2,173,114			$	50,127			$	3,117			$	4,504,793
Net income			—				—				130,285				—				—				130,285
Earnings attributable to noncontrolling interest			—				—				5				—				(5	)			—
Total other comprehensive loss			—				—				—				(9,421	)			—				(9,421	)
Common stock dividends, $0.285 per share			—				—				(37,170	)			—				—				(37,170	)
Issuance of 33,850 shares of common stock for exercise of stock options			1				1,085				—				—				—				1,086
Repurchase and cancellation of 888,567 shares of common stock			(9	)			(36,990	)			—				—				—				(36,999	)
Stock-based compensation expense			—				3,778				—				—				—				3,778
Forfeitures of 47,604 shares of unvested restricted common stock			(1	)			1				—				—				—				—
Balances – September 30, 2021		$	1,288			$	2,245,012			$	2,266,234			$	40,706			$	3,112			$	4,556,352
Nine months ended September 30, 2021:
Balances – December 31, 2020		$	1,294			$	2,265,850			$	1,946,875			$	58,252			$	3,085			$	4,275,356
Net income			—				—				429,267				—				—				429,267
Earnings attributable to noncontrolling interest			—				—				(27	)			—				27				—
Total other comprehensive loss			—				—				—				(17,546	)			—				(17,546	)
Common stock dividends, $0.8425 per share			—				—				(109,881	)			—				—				(109,881	)
Issuance of 176,250 shares of common stock for exercise of stock options			2				6,092				—				—				—				6,094
Issuance of 332,831 shares of unvested restricted common stock			3				(3	)			—				—				—				—
Repurchase and cancellation of 944,460 shares of common stock			(10	)			(38,966	)			—				—				—				(38,976	)
Stock-based compensation expense			—				12,038				—				—				—				12,038
Forfeitures of 97,250 shares of unvested restricted common stock			(1	)			1				—				—				—				—
Balances – September 30, 2021		$	1,288			$	2,245,012			$	2,266,234			$	40,706			$	3,112			$	4,556,352

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

Bank OZK Summary of Non-Interest Expense Unaudited
		Three Months Ended September 30,								Nine Months Ended September 30,
		2021				2020				2021				2020
		(Dollars in thousands)
Salaries and employee benefits		$	53,769			$	53,119			$	159,533			$	153,003
Net occupancy and equipment			17,161				16,676				49,797				47,761
Other operating expenses:
Professional and outside services			7,084				8,263				21,134				22,618
Software and data processing			5,897				5,431				17,695				15,550
Deposit insurance and assessments			2,655				3,595				9,060				11,600
Telecommunication services			1,966				2,352				6,363				6,863
Postage and supplies			1,530				1,808				4,718				5,753
ATM expense			1,846				1,604				4,615				3,766
Travel and meals			1,617				689				3,811				3,501
Writedowns of foreclosed and other assets			990				488				2,476				2,087
Loan collection and repossession expense			407				1,030				1,456				2,581
Advertising and public relations			719				1,557				1,621				4,964
Amortization of intangibles			1,545				1,914				4,878				7,291
Amortization of CRA and tax credit investments			4,972				1,611				12,324				7,458
Other			8,239				5,504				20,689				15,223
Total non-interest expense		$	110,397			$	105,641			$	320,170			$	310,019

Bank OZK Summary of Total Loans Outstanding Unaudited
		September 30, 2021								December 31, 2020
		(Dollars in thousands)
Real estate:
Residential 1-4 family		$	887,769				4.8	%		$	911,115				4.7	%
Non-farm/non-residential			4,080,616				22.3				4,267,147				22.2
Construction/land development			7,718,567				42.2				7,993,467				41.6
Agricultural			237,073				1.3				204,868				1.1
Multifamily residential			1,242,202				6.8				856,297				4.5
Total real estate			14,166,227				77.4				14,232,894				74.1
Commercial and industrial			528,866				2.9				842,206				4.4
Consumer			2,168,307				11.8				2,393,964				12.5
Other			1,441,903				7.9				1,740,104				9.0
Total loans			18,305,303				100.0	%			19,209,168				100.0	%
Allowance for loan losses			(237,722	)							(295,824	)
Net loans		$	18,067,581							$	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 September 30, 2021:
Balances – June 30, 2021		$	248,753			$	58,811			$	307,564
Net charge-offs			(1,312	)			—				(1,312	)
Provision for credit losses			(9,719	)			2,265				(7,454	)
Balances – September 30, 2021		$	237,722			$	61,076			$	298,798
Nine months ended September 30, 2021:
Balances – December 31, 2020		$	295,824			$	81,481			$	377,305
Net charge-offs			(8,561	)			—				(8,561	)
Provision for credit losses			(49,541	)			(20,405	)			(69,946	)
Balances – September 30, 2021		$	237,722			$	61,076			$	298,798
Three months ended September 30, 2020:
Balances – June 30, 2020		$	306,196			$	68,298			$	374,494
Net charge-offs			(4,421	)			—				(4,421	)
Provision for credit losses			7,072				128				7,200
Balances – September 30, 2020		$	308,847			$	68,426			$	377,273
Nine months ended September 30, 2020:
Balances – December 31, 2019		$	108,525			$	—			$	108,525
Adoption of CECL(1) methodology			39,588				54,924				94,512
Balances – January 1, 2020			148,113				54,924				203,037
Net charge-offs			(22,653	)			—				(22,653	)
Provision for credit losses			183,387				13,502				196,889
Balances – September 30, 2020		$	308,847			$	68,426			$	377,273

(1)  Current Expected Credit Loss.

Bank OZK Summary of Deposits – By Account Type Unaudited
		September 30, 2021								December 31, 2020
		(Dollars in thousands)
Non-interest bearing		$	4,586,163				22.8	%		$	3,996,546				18.6	%
Interest bearing:
Transaction (NOW)			3,188,840				15.9				3,124,007				14.6
Savings and money market			5,772,476				28.7				5,036,975				23.5
Time deposits less than $100			1,994,503				9.9				3,075,845				14.3
Time deposits of $100 or more			4,560,458				22.7				6,216,983				29.0
Total deposits		$	20,102,440				100.0	%		$	21,450,356				100.0	%

Summary of Deposits – By Customer Type Unaudited
		September 30, 2021								December 31, 2020
		(Dollars in thousands)
Consumer		$	10,186,211				50.7	%		$	11,165,603				52.1	%
Commercial			6,502,287				32.3				6,056,536				28.2
Public Funds			2,028,243				10.1				2,111,971				9.8
Brokered			894,791				4.5				1,600,116				7.5
Reciprocal			490,908				2.4				516,130				2.4
Total deposits		$	20,102,440				100.0	%		$	21,450,356				100.0	%

Bank OZK Selected Consolidated Financial Data Unaudited
		Three Months Ended September 30,												Nine Months Ended September 30,
		2021				2020				% Change				2021				2020				% Change
		(Dollars in thousands, except per share amounts)
Income statement data:
Net interest income		$	247,957			$	224,657				10.4	%		$	723,339			$	651,024				11.1	%
Provision for credit losses			(7,454	)			7,200				(203.5	)			(69,946	)			196,889				(135.5	)
Non-interest income			25,984				26,676				(2.6	)			85,843				75,947				13.0
Non-interest expense			110,397				105,641				4.5				320,170				310,019				3.3
Net income available to common stockholders			130,290				109,253				19.3				429,240				171,385				150.5
Pre-tax pre-provision net revenue(1)			163,544				145,692				12.3				489,012				416,952				17.3
Common share and per common share data:
Earnings per share − diluted		$	1.00			$	0.84				19.0	%		$	3.30			$	1.32				150.0	%
Earnings per share − basic			1.01				0.84				20.2				3.31				1.33				148.9
Dividends per share			0.285				0.2725				4.6				0.8425				0.8025				5.0
Book value per share			35.35				32.37				9.2				35.35				32.37				9.2
Tangible book value per share(1)			30.14				27.13				11.1				30.14				27.13				11.1
Weighted-average diluted shares outstanding (thousands)			129,929				129,470				0.4				130,063				129,398				0.5
End of period shares outstanding (thousands)			128,818				129,342				(0.4	)			128,818				129,342				(0.4	)
Balance sheet data at period end:
Total assets		$	26,143,367			$	26,888,308				(2.8	)%		$	26,143,367			$	26,888,308				(2.8	)%
Total loans			18,305,303				19,358,443				(5.4	)			18,305,303				19,358,443				(5.4	)
Non-purchased loans			17,707,452				18,419,958				(3.9	)			17,707,452				18,419,958				(3.9	)
Purchased loans			597,851				938,485				(36.3	)			597,851				938,485				(36.3	)
Allowance for loan losses			237,722				308,847				(23.0	)			237,722				308,847				(23.0	)
Foreclosed assets			9,444				16,543				(42.9	)			9,444				16,543				(42.9	)
Investment securities − AFS			3,846,496				3,468,243				10.9				3,846,496				3,468,243				10.9
Goodwill and other intangible assets, net			670,580				677,251				(1.0	)			670,580				677,251				(1.0	)
Deposits			20,102,440				21,287,405				(5.6	)			20,102,440				21,287,405				(5.6	)
Other borrowings			750,217				750,949				(0.1	)			750,217				750,949				(0.1	)
Subordinated notes			345,927				223,950				54.5				345,927				223,950				54.5
Subordinated debentures			120,892				120,335				0.5				120,892				120,335				0.5
Unfunded balance of closed loans			12,385,369				11,604,614				6.7				12,385,369				11,604,614				6.7
Reserve for losses on unfunded loan commitments			61,076				68,426				(10.7	)			61,076				68,426				(10.7	)
Total common stockholders’ equity			4,553,240				4,186,285				8.8				4,553,240				4,186,285				8.8
Net unrealized gains on investment securities AFS included in common stockholders' equity			40,706				61,116								40,706				61,116
Loan (including purchased loans) to deposit ratio			91.06	%			90.94	%							91.06	%			90.94	%
Selected ratios:
Return on average assets(2)			1.98	%			1.63	%							2.15	%			0.90	%
Return on average common stockholders’ equity(2)			11.41				10.48								12.98				5.55
Return on average tangible common stockholders’ equity(1) (2)			13.39				12.52								15.31				6.65
Average common equity to total average assets			17.38				15.56								16.57				16.23
Net interest margin – FTE(2)			4.16				3.69								3.99				3.79
Efficiency ratio			40.14				41.77								39.39				42.38
Net charge-offs to average non-purchased loans(2) (3)			0.04				0.09								0.07				0.07
Net charge-offs to average total loans(2)			0.03				0.09								0.06				0.16
Nonperforming loans to total loans(4)			0.20				0.15								0.20				0.15
Nonperforming assets to total assets(4)			0.17				0.17								0.17				0.17
Allowance for loan losses to total loans(5)			1.30				1.60								1.30				1.60
Other information:
Non-accrual loans(4)		$	34,920			$	27,181							$	34,920			$	21,181
Accruing loans − 90 days past due(4)			—				—								—				—
Troubled and restructured non-purchased loans − accruing(4)			1,253				1,251								1,253				1,251

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

Selected Consolidated Financial Data (continued) Unaudited
		Three Months Ended
		September 30,				June 30,
		2021				2021				% Change
	(Dollars in thousands, except per share amounts)
Income statement data:
Net interest income		$	247,957			$	240,746				3.0	%
Provision for credit losses			(7,454	)			(30,932	)			(75.9	)
Non-interest income			25,984				27,742				(6.3	)
Non-interest expense			110,397				103,711				6.4
Net income available to common stockholders			130,290				150,535				(13.4	)
Pre-tax pre-provision net revenue(1)			163,544				164,777				(0.7	)
Common share and per common share data:
Earnings per share − diluted		$	1.00			$	1.16				(13.8	)%
Earnings per share − basic			1.01				1.16				(12.9	)
Dividends per share			0.285				0.28				1.8
Book value per share			35.35				34.70				1.9
Tangible book value per share(1)			30.14				29.52				2.1
Weighted-average diluted shares outstanding (thousands)			129,929				130,255				(0.3	)
End of period shares outstanding (thousands)			128,818				129,720				(0.7	)
Balance sheet data at period end:
Total assets		$	26,143,367			$	26,605,938				(1.7	)%
Total loans			18,305,303				18,271,670				0.2
Non-purchased loans			17,707,452				17,611,848				0.5
Purchased loans			597,851				659,822				(9.4	)
Allowance for loan losses			237,722				248,753				(4.4	)
Foreclosed assets			9,444				7,542				25.2
Investment securities − AFS			3,846,496				4,693,396				(18.0	)
Goodwill and other intangible assets, net			670,580				672,125				(0.2	)
Deposits			20,102,440				20,706,777				(2.9	)
Other borrowings			750,217				750,228				(0.1	)
Subordinated notes			345,927				224,236				54.3
Subordinated debentures			120,892				120,752				0.1
Unfunded balance of closed loans			12,385,369				11,709,818				5.8
Reserve for losses on unfunded loan commitments			61,076				58,811				3.9
Total common stockholders’ equity			4,553,240				4,501,676				1.1
Net unrealized gains on investment securities AFS included in common stockholders' equity			40,706				50,127
Loan (including purchased loans) to deposit ratio			91.06	%			88.24	%
Selected ratios:
Return on average assets(2)			1.98	%			2.24	%
Return on average common stockholders’ equity(2)			11.41				13.65
Return on average tangible common stockholders’ equity(1) (2)			13.39				16.10
Average common equity to total average assets			17.38				16.42
Net interest margin – FTE(2)			4.16				3.95
Efficiency ratio			40.14				38.43
Net charge-offs to average non-purchased loans(2) (3)			0.04				0.09
Net charge-offs to average total loans(2)			0.03				0.08
Nonperforming loans to total loans(4)			0.20				0.22
Nonperforming assets to total assets(4)			0.17				0.18
Allowance for loan losses to total loans(5)			1.30				1.36
Other information:
Non-accrual loans(4)		$	34,920			$	38,195
Accruing loans − 90 days past due(4)			—				—
Troubled and restructured non-purchased loans − accruing(4)			1,253				1,365

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

Bank OZK Supplemental Quarterly Financial Data Unaudited
		12/31/19				3/31/20				6/30/20				9/30/20				12/31/20				3/31/21				6/30/21				9/30/21
	(Dollar in thousands)
Earnings Summary:
Net interest income		$	214,977			$	209,775			$	216,593			$	224,657			$	237,600			$	234,636			$	240,746			$	247,957
Federal tax (FTE) adjustment			1,028				1,133				1,753				1,605				1,533				1,275				1,355				1,106
Net interest income (FTE)			216,005				210,908				218,346				226,262				239,133				235,911				242,101				249,063
Provision for credit losses			(4,938	)			(117,663	)			(72,026	)			(7,200	)			(6,750	)			31,559				30,932				7,454
Non-interest income			30,406				27,680				21,591				26,676				28,661				32,117				27,742				25,984
Non-interest expense			(104,406	)			(103,425	)			(100,953	)			(105,641	)			(103,394	)			(106,059	)			(103,711	)			(110,397	)
Pretax income (FTE)			137,067				17,500				66,958				140,097				157,650				193,528				197,064				172,104
FTE adjustment			(1,028	)			(1,133	)			(1,753	)			(1,605	)			(1,533	)			(1,275	)			(1,355	)			(1,106	)
Provision for income taxes			(35,240	)			(4,509	)			(14,948	)			(29,251	)			(35,607	)			(43,818	)			(45,161	)			(40,713	)
Noncontrolling interest			7				8				9				12				3				(19	)			(13	)			5
Net income available to common stockholders		$	100,806			$	11,866			$	50,266			$	109,253			$	120,513			$	148,416			$	150,535			$	130,290
Earnings per common share – diluted		$	0.78			$	0.09			$	0.39			$	0.84			$	0.93			$	1.14			$	1.16			$	1.00
Non-interest Income:
Service charges on deposit accounts		$	10,933			$	10,009			$	8,281			$	9,427			$	9,983			$	9,665			$	10,311			$	11,177
Trust income			2,010				1,939				1,759				1,936				1,909				2,206				1,911				2,247
BOLI income:
Increase in cash surrender value			5,167				5,067				5,057				5,081				5,034				4,881				4,919				4,940
Death benefits			2,989				608				—				—				—				1,409				—				—
Loan service, maintenance and other fees			4,282				3,716				3,394				3,351				3,797				3,551				3,953				3,307
Gains on sales of other assets			1,358				161				621				891				5,189				5,828				2,341				463
Net gains on investment securities			—				2,223				—				2,244				—				—				—				—
Other			3,667				3,957				2,479				3,746				2,749				4,577				4,307				3,850
Total non-interest income		$	30,406			$	27,680			$	21,591			$	26,676			$	28,661			$	32,117			$	27,742			$	25,984
Non-interest Expense:
Salaries and employee benefits		$	52,050			$	51,473			$	48,410			$	53,119			$	53,832			$	53,645			$	52,119			$	53,769
Net occupancy and equipment			14,855				15,330				15,756				16,676				15,617				16,468				16,168				17,161
Other operating expenses			37,501				36,622				36,787				35,846				33,945				35,946				35,424				39,467
Total non-interest expense		$	104,406			$	103,425			$	100,953			$	105,641			$	103,394			$	106,059			$	103,711			$	110,397
Balance Sheet Data:
Total assets		$	23,555,728			$	24,565,810			$	26,380,409			$	26,888,308			$	27,162,596			$	27,276,892			$	26,605,938			$	26,143,367
Non-purchased loans			16,224,539				17,030,378				18,247,431				18,419,958				18,401,495				17,979,435				17,611,848				17,707,452
Purchased loans			1,307,504				1,197,826				1,063,647				938,485				807,673				735,630				659,822				597,851
Investment securities – AFS			2,277,389				2,816,556				3,299,944				3,468,243				3,405,351				4,162,479				4,693,396				3,846,496
Deposits			18,474,259				18,809,190				20,723,598				21,287,405				21,450,356				21,296,442				20,706,777				20,102,440
Unfunded balance of closed loans			11,325,598				11,334,737				11,411,441				11,604,614				11,847,117				11,780,099				11,709,818				12,385,369
Common stockholders' equity			4,150,351				4,083,150				4,110,666				4,186,285				4,272,271				4,383,205				4,501,676				4,553,240

Bank OZK Supplemental Quarterly Financial Data (Continued) Unaudited
		12/31/19				3/31/20				6/30/20				9/30/20				12/31/20				3/31/21				6/30/21				9/30/21
	(Dollars in thousands)
Allowance for Credit Losses:
Balance at beginning of period		$	109,001			$	108,525			$	316,409			$	374,494			$	377,273			$	377,305			$	342,307			$	307,564
Adoption of CECL(1) methodology			—				94,512				—				—				—				—				—				—
Net charge-offs			(5,414	)			(4,291	)			(13,941	)			(4,421	)			(6,718	)			(3,439	)			(3,811	)			(1,312	)
Provision for credit losses			4,938				117,663				72,026				7,200				6,750				(31,559	)			(30,932	)			(7,454	)
Balance at end of period		$	108,525			$	316,409			$	374,494			$	377,273			$	377,305			$	342,307			$	307,564			$	298,798
Allowance for loan losses		$	108,525			$	238,737			$	306,196			$	308,847			$	295,824			$	268,077			$	248,753			$	237,722
Reserve for losses on unfunded loan commitments			—				77,672				68,298				68,426				81,481				74,230				58,811				61,076
Total allowance for credit losses		$	108,525			$	316,409			$	374,494			$	377,273			$	377,305			$	342,307			$	307,564			$	298,798
Selected Ratios:
Net interest margin – FTE(2)			4.15	%			3.96	%			3.74	%			3.69	%			3.88	%			3.86	%			3.95	%			4.16	%
Efficiency ratio			42.37				43.35				42.07				41.77				38.61				39.57				38.43				40.14
Net charge-offs to average non-purchased loans(2) (3)			0.10				0.08				0.05				0.09				0.14				0.08				0.09				0.04
Net charge-offs to average total loans(2)			0.12				0.10				0.29				0.09				0.14				0.07				0.08				0.03
Nonperforming loans to total loans(4)			0.15				0.16				0.18				0.15				0.25				0.25				0.22				0.20
Nonperforming assets to total assets(4)			0.18				0.19				0.19				0.17				0.21				0.19				0.18				0.17
Allowance for loan losses to total loans (5)			0.62				1.31				1.59				1.60				1.54				1.43				1.36				1.30
Loans past due 30 days or more, including past due non-accrual loans, to total loans(4)			0.19				0.18				0.13				0.13				0.16				0.13				0.10				0.13

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

Bank OZK Average Consolidated Balance Sheets and Net Interest Analysis – FTE Unaudited
		Three Months Ended September 30,																								Nine Months Ended September 30,
		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
Earning assets:
Interest earning deposits and federal funds sold		$	1,287,890			$	523				0.16	%		$	1,705,652			$	532				0.12	%		$	1,792,191			$	1,556				0.12	%		$	1,459,814			$	5,237				0.48	%
Investment securities:
Taxable			3,509,465				9,236				1.04				2,216,041				9,666				1.74				3,150,732				26,786				1.14				1,979,368				31,480				2.12
Tax-exempt – FTE			740,809				4,172				2.23				1,193,407				6,573				2.19				955,822				13,747				1.92				944,552				18,527				2.62
Non-purchased loans – FTE			17,559,654				238,488				5.39				18,311,166				236,846				5.15				17,761,807				717,488				5.40				17,602,817				701,892				5.33
Purchased loans			627,436				11,350				7.18				999,438				16,269				6.48				699,678				34,985				6.69				1,132,334				54,743				6.46
Total earning assets – FTE			23,725,254				263,769				4.41				24,425,704				269,886				4.40				24,360,230				794,562				4.36				23,118,885				811,879				4.69
Non-interest earning assets			2,348,740												2,235,853												2,324,716												2,302,225
Total assets		$	26,073,994											$	26,661,557											$	26,684,946											$	25,421,110
LIABILITIES AND STOCKHOLDERS’ EQUITY
Interest bearing liabilities:
Deposits:
Savings and interest bearing transaction		$	8,891,042			$	2,885				0.13	%		$	7,581,707			$	5,496				0.29	%		$	8,656,762			$	9,840				0.15	%		$	7,742,865			$	32,945				0.57	%
Time deposits of $100 or more			4,852,566				6,508				0.53				6,101,542				20,858				1.36				5,509,055				30,737				0.75				5,259,616				66,813				1.70
Other time deposits			2,067,947				2,933				0.56				3,664,931				11,919				1.29				2,455,649				14,331				0.78				3,584,047				41,448				1.54
Total interest bearing deposits			15,811,555				12,326				0.31				17,348,180				38,273				0.88				16,621,466				54,908				0.44				16,586,528				141,206				1.14
Repurchase agreements with customers			7,565				4				0.21				7,093				4				0.24				6,849				14				0.27				7,686				17				0.29
Other borrowings(1)			750,221				1,013				0.54				793,350				1,156				0.58				750,292				2,996				0.53				711,408				2,168				0.41
Subordinated notes			56,468				429				3.01				223,899				3,207				5.70				167,636				6,755				5.39				223,801				9,551				5.70
Subordinated debentures(1)			120,822				934				3.07				120,253				984				3.26				120,681				2,814				3.12				120,119				3,420				3.80
Total interest bearing liabilities			16,746,631				14,706				0.35				18,492,775				43,624				0.94				17,666,924				67,487				0.51				17,649,542				156,362				1.18
Non-interest bearing liabilities:
Non-interest bearing deposits			4,523,521												3,764,063												4,289,589												3,391,162
Other non-interest bearing liabilities			269,733												253,211												304,086												251,723
Total liabilities			21,539,885												22,510,049												22,260,599												21,292,427
Common stockholders’ equity			4,530,995												4,148,409												4,421,240												4,125,578
Noncontrolling interest			3,114												3,099												3,107												3,105
Total liabilities and stockholders’ equity		$	26,073,994											$	26,661,557											$	26,684,946											$	25,421,110
Net interest income – FTE						$	249,063											$	226,262											$	727,075											$	655,517
Net interest margin – FTE											4.16	%											3.69	%											3.99	%											3.79	%
Core spread(2)											5.08	%											4.27	%											4.96	%											4.19	%

⁽¹⁾   The interest expense and the rates for “other borrowings” and for “subordinated debentures” were affected by capitalized interest. Capitalized interest included in other borrowings totaled $0.02 million for the third quarter $0.07 million for the first nine months of 2021 compared to $0.03 million for the third quarter and $0.65 million for the first nine months of 2020. In the absence of this interest capitalization, the rates on other borrowings would have been 0.54% for the third quarter and 0.55% for the first nine months of 2021 compared to 0.59% for the third quarter and 0.53% for the first nine months of 2020. Capitalized interest included in subordinated debentures totaled $0.01 million for the third quarter and $0.18 million for the first nine months of 2020 (none in the third quarter or first nine months of 2021). In the absence of this interest capitalization, the rates on subordinated debentures would have been 3.27% for the third quarter and 4.00% for the first nine months of 2020.

⁽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 Tangible Common Stockholders’ Equity and the Annualized Return on Average Tangible Common Stockholders’ Equity Unaudited
	Three Months Ended												Nine Months Ended
	September 30,								June 30,				September 30,
	2021				2020				2021				2021				2020
	(Dollars in thousands)
Net income available to common stockholders	$	130,290			$	109,253			$	150,535			$	429,240			$	171,385
Average common stockholders’ equity before noncontrolling interest	$	4,530,995			$	4,148,409			$	4,423,093			$	4,421,240			$	4,125,578
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		(10,617	)			(17,461	)			(12,175	)			(12,195	)			(19,803	)
Total average intangibles		(671,406	)			(678,250	)			(672,964	)			(672,984	)			(680,592	)
Average tangible common stockholders’ equity	$	3,859,589			$	3,470,159			$	3,750,129			$	3,748,256			$	3,444,986
Return on average common stockholders’ equity(1)		11.41	%			10.48	%			13.65	%			12.98	%			5.55	%
Return on average tangible common stockholders' equity(1)		13.39	%			12.52	%			16.10	%			15.31	%			6.65	%

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

Calculation of Total Tangible Common Stockholders’ Equity and Tangible Book Value per Common Share Unaudited
		September 30,								June 30,
		2021				2020				2021
		(In thousands, except per share amounts)
Total common stockholders’ equity before noncontrolling interest		$	4,553,240			$	4,186,285			$	4,501,676
Less intangible assets:
Goodwill			(660,789	)			(660,789	)			(660,789	)
Core deposit and other intangible assets, net of accumulated amortization			(9,791	)			(16,462	)			(11,336	)
Total intangibles			(670,580	)			(677,251	)			(672,125	)
Total tangible common stockholders' equity		$	3,882,660			$	3,509,034			$	3,829,551
Shares of common stock outstanding			128,818				129,342				129,720
Book value per common share		$	35.35			$	32.37			$	34.70
Tangible book value per common share		$	30.14			$	27.13			$	29.52

Calculation of Total Tangible Common Stockholders’ Equity and the Ratio of Total Tangible Common Stockholders’ Equity to Total Tangible Assets Unaudited
		September 30,
		2021				2020
		(Dollars in thousands)
Total common stockholders’ equity before noncontrolling interest		$	4,553,240			$	4,186,285
Less intangible assets:
Goodwill			(660,789	)			(660,789	)
Core deposit and other intangible assets, net of accumulated amortization			(9,791	)			(16,462	)
Total intangibles			(670,580	)			(677,251	)
Total tangible common stockholders' equity		$	3,882,660			$	3,509,034
Total assets		$	26,143,367			$	26,888,308
Less intangible assets:
Goodwill			(660,789	)			(660,789	)
Core deposit and other intangible assets, net of accumulated amortization			(9,791	)			(16,462	)
Total intangibles			(670,580	)			(677,251	)
Total tangible assets		$	25,472,787			$	26,211,057
Ratio of total common stockholders’ equity to total assets			17.42	%			15.57	%
Ratio of total tangible common stockholders’ equity to total tangible assets			15.24	%			13.39	%

Calculation of Pre-Tax Pre-Provision Net Revenue Unaudited
		Three Months Ended												Nine Months Ended
		September 30,								June 30,				September 30,
		2021				2020				2021				2021				2020
		(Dollars in thousands)
Income before taxes		$	170,998			$	138,492			$	195,709			$	558,958			$	220,063
Provision for credit losses			(7,454	)			7,200				(30,932	)			(69,946	)			196,889
Pre-tax pre-provision net revenue		$	163,544			$	145,692			$	164,777			$	489,012			$	416,952

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