Bank OZK Announces Third Quarter 2021 Earnings

المصدر: Nasdaq GlobeNewswire / 21 أكتوبر 2021 16:01:01 America/New_York

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

Bank OZK Announces Third Quarter 2021 Earnings

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