Bank OZK Announces Record Fourth Quarter and Full Year 2023 Earnings

LITTLE ROCK, Ark., Jan. 18, 2024 (GLOBE NEWSWIRE) -- Bank OZK (the "Bank") (NASDAQ:OZK) today announced that net income available to common stockholders for the fourth quarter of 2023 was a record $171.1 million, a 7.7% increase from $158.8 million for the fourth quarter of 2022. Diluted earnings per common share for the fourth quarter of 2023 were a record $1.50, an 11.9% increase from $1.34 for the fourth quarter of 2022.

For the full year of 2023, net income available to common stockholders was $674.6 million, a 23.2% increase from $547.5 million for the full year of 2022. Diluted earnings per common share for the full year of 2023 were $5.87, a 29.3% increase from $4.54 for the full year of 2022.

Pre-tax pre-provision net revenue ("PPNR") was $262.6 million for the fourth quarter of 2023, an 8.9% increase from $241.0 million for the fourth quarter of 2022. For the full year of 2023, PPNR was $1.03 billion, a 28.3% increase from $0.81 billion for the full year of 2022. The calculation of PPNR and the reconciliation to generally accepted accounting principles ("GAAP") are included in the schedules accompanying this release.

The Bank's annualized returns on average assets, average common stockholders' equity and average tangible common stockholders' equity for the fourth quarter of 2023 were 2.04%, 14.58% and 16.99%, respectively, compared to 2.35%, 14.76% and 17.48%, respectively, for the fourth quarter of 2022. The Bank's returns on average assets, average common stockholders' equity and average tangible common stockholders' equity for the full year of 2023 were 2.20%, 14.93% and 17.50%, respectively, compared to 2.08%, 12.66% and 14.97%, respectively, for the full year of 2022. The results for the fourth quarter and full year of 2023 include the impact of a $9.9 million FDIC special assessment recorded during the fourth quarter of 2023. The calculation of the Bank's returns on average common stockholders' equity and average tangible common stockholders' equity and the reconciliations to GAAP are included in the schedules accompanying this release.

George Gleason, Chairman and Chief Executive Officer stated, "We are pleased to have reported record net income and record diluted earnings per share in each quarter of 2023, resulting in net income available to common stockholders for the year of $674.6 million and diluted earnings per common share of $5.87. Our goal for 2024 is to continue to improve our record annual net income and diluted earnings per common share achieved in 2023, and we believe that is a reasonable goal, notwithstanding what appears likely to remain a challenging macroeconomic environment. We feel that we are well positioned for the coming year, and we look forward to capitalizing on new opportunities."

KEY BALANCE SHEET METRICS

Total loans were $26.46 billion at December 31, 2023, a 27.3% increase from $20.78 billion at December 31, 2022. Deposits were $27.41 billion at December 31, 2023, a 27.5% increase from $21.50 billion at December 31, 2022. Total assets were $34.24 billion at December 31, 2023, a 23.8% increase from $27.66 billion at December 31, 2022.

Common stockholders' equity was $4.80 billion at December 31, 2023, a 10.3% increase from $4.35 billion at December 31, 2022. Tangible common stockholders' equity was $4.14 billion at December 31, 2023, a 12.3% increase from $3.69 billion at December 31, 2022. The Bank did not repurchase any shares during the three months ended December 31, 2023. During the full year of 2023, the Bank repurchased 4.3 million shares for $151.5 million, which equates to a weighted average cost of approximately $35.19 per share.

Book value per common share was $42.42 at December 31, 2023, a 14.2% increase from $37.13 at December 31, 2022. Tangible book value per common share was $36.58 at December 31, 2023, a 16.2% increase from $31.47 at December 31, 2022.

The Bank's ratio of total common stockholders' equity to total assets was 14.02% at December 31, 2023, compared to 15.73% at December 31, 2022. Its ratio of total tangible common stockholders' equity to total tangible assets was 12.33% at December 31, 2023, compared to 13.66% at December 31, 2022. The calculations of the Bank's total common stockholders' equity, tangible common stockholders' equity, tangible book value per common share, and ratio of total tangible common stockholders' equity to total tangible assets and the reconciliations to GAAP are included in the schedules accompanying this release.

ASSET QUALITY

The Bank's ratio of nonperforming non-purchased loans to total loans (excluding purchased loans) was 0.23% at December 31, 2023, compared to 0.22% as of December 31, 2022. The Bank's ratio of nonperforming assets to total assets (excluding purchased loans, except for their inclusion in total assets) was 0.36% at December 31, 2023, compared to 0.19% as of December 31, 2022. The Bank's annualized ratio of net charge-offs of total loans to average total loans was 0.06% for the fourth quarter and 0.13% for the twelve months ended December 31, 2023, compared to 0.06% for the fourth quarter and 0.04% for the twelve months ended December 31, 2022.

MANAGEMENT'S COMMENTS, CONFERENCE CALL, TRANSCRIPT AND FILINGS

In connection with this release, the Bank released management's comments on its quarterly results, which are available at https://ir.ozk.com. This release should be read in conjunction with management's comments on the fourth quarter and full year 2023 results.

Management will conduct a conference call to take questions at 10:00 a.m. CT (11:00 a.m. ET) on Friday, January 19, 2024. Interested parties may access the conference call live via webcast on the Bank's investor relations website at https://ir.ozk.com/news/event-calendar, or may participate via telephone by registering using this online form. Upon registration, all telephone participants will receive the dial-in number along with a unique PIN number that can be used to access the call. A replay of the conference call webcast will be archived on the Bank's website for at least 30 days.

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

NON-GAAP FINANCIAL MEASURES

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

FORWARD-LOOKING STATEMENTS

This press release and other communications by the Bank include certain "forward-looking statements" regarding the Bank's plans, expectations, thoughts, beliefs, estimates, goals and outlook for the future that are intended to be covered by the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on management's expectations as well as certain assumptions and estimates made by, and information available to, management at the time. Those statements are not guarantees of future results or performance and are subject to certain known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those expressed in, or implied by, such forward-looking statements. These risks, uncertainties and other factors include, but are not limited to: potential delays or other problems in implementing the Bank's growth, expansion and acquisition strategies, including hiring or retaining qualified personnel, obtaining regulatory or other approvals, delays in acquiring satisfactory sites, obtaining permits and designing, constructing and opening new offices or relocating, selling or closing existing offices; integrating any acquisitions; the availability of and access to capital; possible downgrades in the Bank's credit ratings or outlook which could increase the costs of or decrease the availability of funding from capital markets; the ability to attract new or retain existing deposits or to retain or grow loans, including growth from unfunded closed loans; the ability to generate future revenue growth or to control future growth in non-interest expense; interest rate fluctuations, including changes in the yield curve between short-term and long-term interest rates or changes in the relative relationships of various interest rate indices; competitive factors and pricing pressures, including their effect on the Bank's net interest margin or core spread; general economic, unemployment, credit market and real estate market conditions, and the effect of such conditions on the creditworthiness of borrowers, collateral values, the value of investment securities and asset recovery values; conditions within the banking industry, including the effects of recent failures of other financial institutions; recently enacted and potential laws and regulatory requirements or changes to existing laws and regulatory requirements, including changes affecting oversight of the financial services industry, changes intended to manage or mitigate climate and related environmental risks or changes in the interpretation and enforcement of such laws and requirements, and the costs and expenses to comply with new and/or existing legislation and regulatory requirements; uncertainty regarding changes in U.S. government monetary and fiscal policy; the impact of any U.S. federal government shutdown or budgetary crisis; FDIC special assessments or changes to regular assessments; the ability to keep pace with technological changes, including changes regarding artificial intelligence and maintaining cybersecurity; the impact of failure in, or breach of, our operational or security systems or infrastructure, or those of third parties with whom we do business or others, including as a result of cyber-attacks or an increase in the incidence or severity of fraud, illegal payments, security breaches or other illegal acts impacting the Bank, its customers or others; natural disasters; acts of war or terrorism; the potential impact of continuing inflationary pressures; the potential impact of supply chain disruptions; national or international political instability or military conflict, including the conflict in the Middle East and the ongoing war in Ukraine; the competition and costs of recruiting and retaining human talent; impairment of our goodwill; adoption of new accounting standards, or changes in existing standards; and adverse results (including costs, fines, reputational harm and/or other negative effects) from current or future litigation, regulatory examinations or other legal and/or regulatory actions or rulings as well as other factors identified in this communication or as detailed from time to time in our public filings, including those factors described in the disclosures under the headings "Forward-Looking Information" and "Item 1A. Risk Factors" in our most recent Annual Report on Form 10-K for the year ended December 31, 2022 and our quarterly reports on Form 10-Q. Should one or more of the foregoing risks materialize, or should underlying assumptions prove incorrect, actual results or outcomes may vary materially from those described in, or implied by, such forward-looking statements. The Bank disclaims any obligation to update or revise any forward-looking statements based on the occurrence of future events, the receipt of new information or otherwise.

GENERAL INFORMATION

Bank OZK (NASDAQ:OZK) is a regional bank providing innovative financial solutions delivered by expert bankers with a relentless pursuit of excellence. Established in 1903, Bank OZK conducts banking operations in approximately 240 offices in eight states including Arkansas, Georgia, Florida, North Carolina, Texas, New York, California and Mississippi and had $34.24 billion in total assets as of December 31, 2023. For more information, visit www.ozk.com.

Bank OZK Consolidated Balance Sheets Unaudited
		December 31,
			2023				2022
		(Dollars in thousands)
ASSETS
Cash and cash equivalents		$	2,149,529			$	1,033,454
Investment securities – available for sale ("AFS")			3,244,371				3,491,613
Investment securities – trading			—				8,817
Federal Home Loan Bank of Dallas ("FHLB") and other bankers' bank stocks			50,400				42,406
Non-purchased loans			26,195,030				20,400,154
Purchased loans			264,045				378,637
Allowance for loan losses			(339,394	)			(208,858	)
Net Loans			26,119,681				20,569,933
Premises and equipment, net			676,821				678,405
Foreclosed assets			61,720				6,616
Accrued interest receivable			170,110				125,130
Bank owned life insurance ("BOLI")			808,490				789,805
Goodwill and other intangible assets, net			660,789				663,543
Other, net			295,546				246,846
Total assets		$	34,237,457			$	27,656,568
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Demand non-interest bearing		$	4,095,874			$	4,658,451
Savings and interest bearing transaction			9,074,296				9,905,717
Time			14,234,973				6,935,975
Total deposits			27,405,143				21,500,143
Other borrowings			805,318				606,666
Subordinated notes			347,761				346,947
Subordinated debentures			121,652				121,591
Reserve for losses on unfunded loan commitments			161,834				156,419
Accrued interest payable and other liabilities			255,773				233,864
Total liabilities		$	29,097,481			$	22,965,630
Commitments and contingencies
Stockholders' equity:
Preferred Stock: $0.01 par value; 100,000,000 shares authorized; 14,000,000 issued and outstanding at December 31, 2023 and December 31, 2022			338,980				338,980
Common Stock: $0.01 par value; 300,000,000 shares authorized; 113,148,672 and 117,176,928 shares issued and outstanding at December 31, 2023 and December 31, 2022, respectively			1,131				1,172
Additional paid-in capital			1,612,446				1,753,941
Retained earnings			3,283,818				2,773,135
Accumulated other comprehensive loss			(97,374	)			(177,649	)
Total stockholders' equity before noncontrolling interest			5,139,001				4,689,579
Noncontrolling interest			975				1,359
Total stockholders' equity			5,139,976				4,690,938
Total liabilities and stockholders' equity		$	34,237,457			$	27,656,568

Bank OZK Consolidated Statements of Income Unaudited
		Three Months Ended December 31,							Year Ended December 31,
			2023				2022			2023				2022
		(Dollars in thousands, except per share amounts)
Interest income:
Non-purchased loans		$	557,844			$	367,019		$	1,968,289			$	1,158,332
Purchased loans			5,412				7,141			23,257				31,441
Investment securities:
Taxable			9,667				10,280			39,429				41,526
Tax-exempt			10,670				8,521			38,957				22,653
Deposits with banks			21,901				5,961			58,241				12,116
Total interest income			605,494				398,922			2,128,173				1,266,068
Interest expense:
Deposits			218,474				53,230			627,050				94,574
Other borrowings			11,329				8,534			41,669				13,033
Subordinated notes			2,631				2,631			10,439				10,439
Subordinated debentures			2,512				2,039			9,530				5,780
Total interest expense			234,946				66,434			688,688				123,826
Net interest income			370,548				332,488			1,439,485				1,142,242
Provision for credit losses			43,832				32,508			165,470				83,494
Net interest income after provision for credit losses			326,716				299,980			1,274,015				1,058,748
Non-interest income:
Service charges on deposit accounts:
NSF and overdraft fees			4,700				4,467			18,059				17,724
All other service charges			7,333				7,138			27,995				28,102
Trust income			2,165				1,977			8,524				7,990
BOLI income:
Increase in cash surrender value			5,401				4,953			20,696				19,532
Death benefits			2,966				—			2,966				807
Loan service, maintenance and other fees			6,755				3,780			18,920				13,819
Gains on sales of other assets			3,288				510			9,029				11,467
Net gains on investment securities			1,177				1,256			3,243				2,019
Other			3,242				3,463			13,117				13,043
Total non-interest income			37,027				27,544			122,549				114,503
Non-interest expense:
Salaries and employee benefits			66,270				59,946			258,846				226,373
Net occupancy and equipment			17,234				17,584			72,591				70,058
Other operating expenses			61,507				41,483			198,124				155,290
Total non-interest expense			145,011				119,013			529,561				451,721
Income before taxes			218,732				208,511			867,003				721,530
Provision for income taxes			43,600				45,686			176,164				157,440
Net income			175,132				162,825			690,839				564,090
Earnings attributable to noncontrolling interest			(6	)			54			(56	)			51
Preferred stock dividends			4,047				4,047			16,187				16,621
Net income available to common stockholders		$	171,079			$	158,832		$	674,596			$	547,520
Basic earnings per common share		$	1.51			$	1.35		$	5.89			$	4.55
Diluted earnings per common share		$	1.50			$	1.34		$	5.87			$	4.54

Bank OZK Consolidated Statements of Stockholders' Equity Unaudited
		Preferred Stock			Common Stock				Additional Paid-in Capital				Retained Earnings				Accumulated Other Comprehensive (Loss) Income				Non-Controlling Interest				Total
		(Dollars in thousands, except per share amounts)
Three months ended December 31, 2023:
Balances - September 30, 2023		$	338,980		$	1,131			$	1,607,510			$	3,154,869			$	(198,986	)		$	1,409			$	4,904,913
Net income			—			—				—				175,132				—				—				175,132
Earnings attributable to noncontrolling interest			—			—				—				(6	)			—				6				—
Total other comprehensive income			—			—				—				—				101,612				—				101,612
Preferred stock dividends, $0.28906 per share			—			—				—				(4,047	)			—				—				(4,047	)
Common stock dividends, $0.37 per share			—			—				—				(42,130	)			—				—				(42,130	)
Return of capital paid to non-controlling interest			—			—				—				—				—				(440	)			(440	)
Issuance of 17,018 shares of common stock pursuant to stock-based compensation plans			—			—				547				—				—				—				547
Stock-based compensation expense			—			—				4,389				—				—				—				4,389
Forfeitures of 4,578 shares of unvested restricted common stock			—			—				—				—				—				—				—
Balances - December 31, 2023		$	338,980		$	1,131			$	1,612,446			$	3,283,818			$	(97,374	)		$	975			$	5,139,976
Year ended December 31, 2023:
Balances - December 31, 2022		$	338,980		$	1,172			$	1,753,941			$	2,773,135			$	(177,649	)		$	1,359			$	4,690,938
Net income			—			—				—				690,839				—				—				690,839
Earnings attributable to noncontrolling interest			—			—				—				(56	)			—				56				—
Total other comprehensive income			—			—				—				—				80,275				—				80,275
Preferred stock dividends, $1.15624 per share			—			—				—				(16,187	)			—				—				(16,187	)
Common stock dividends, $1.42 per share			—			—				—				(163,913	)			—				—				(163,913	)
Return of capital paid to non-controlling interest																						(440	)			(440	)
Issuance of 522,651 shares of common stock pursuant to stock-based compensation plans			—			5				1,166				—				—				—				1,171
Repurchase and cancellation of 4,304,239 shares of common stock under share repurchase program, including excise taxes			—			(44	)			(151,421	)			—				—				—				(151,465	)
Repurchase and cancellation of 215,362 shares of common stock withheld for tax pursuant to stock-based compensation plans			—			(2	)			(8,672	)			—												(8,674	)
Stock-based compensation expense			—			—				17,432				—				—				—				17,432
Forfeitures of 31,306 shares of unvested restricted common stock			—			—				—				—				—				—				—
Balances - December 31, 2023		$	338,980		$	1,131			$	1,612,446			$	3,283,818			$	(97,374	)		$	975			$	5,139,976

Bank OZK Consolidated Statements of Stockholders' Equity Unaudited
		Preferred Stock			Common Stock				Additional Paid-in Capital				Retained Earnings				Accumulated Other Comprehensive (Loss) Income				Non-Controlling Interest				Total
		(Dollars in thousands, except per share amounts)
Three months ended December 31, 2022:
Balances - September 30, 2022		$	338,980		$	1,178			$	1,773,562			$	2,653,377			$	(227,673	)		$	3,120			$	4,542,544
Net income			—			—				—				162,825				—				—				162,825
Earnings attributable to noncontrolling interest			—			—				—				54				—				(54	)			—
Total other comprehensive income			—			—				—				—				50,024				—				50,024
Preferred stock dividends, $0.28906 per share			—			—				—				(4,047	)			—				—				(4,047	)
Common stock dividends, $0.33 per share			—			—				—				(39,074	)			—				—				(39,074	)
Return of capital to non-controlling interest			—			—				—				—				—				(1,707	)			(1,707	)
Issuance of 10,496 shares of common stock pursuant to stock-based compensation plans			—			—				241				—				—				—				241
Repurchase and cancellation of 574,878 shares of common stock under share repurchase program			—			(6	)			(23,219	)			—				—				—				(23,225	)
Repurchase and cancellation of 3,890 shares of common stock withheld for tax pursuant to restricted stock vesting			—			—				(174	)			—				—				—				(174	)
Stock-based compensation expense			—			—				3,531				—				—				—				3,531
Forfeitures of 16,405 shares of unvested restricted common stock			—			—				—				—				—				—				—
Balances - December 31, 2022		$	338,980		$	1,172			$	1,753,941			$	2,773,135			$	(177,649	)		$	1,359			$	4,690,938
Year ended December 31, 2022:
Balances - December 31, 2021		$	338,980		$	1,254			$	2,093,702			$	2,378,466			$	23,841			$	3,117			$	4,839,360
Net income			—			—				—				564,090				—				—				564,090
Earnings attributable to noncontrolling interest			—			—				—				51				—				(51	)			—
Total other comprehensive loss			—			—				—				—				(201,490	)			—				(201,490	)
Preferred stock dividends, $1.187 per share			—			—				—				(16,621	)			—				—				(16,621	)
Common stock dividends, $1.26 per share			—			—				—				(152,851	)			—				—				(152,851	)
Return of capital to non-controlling interest			—			—				—				—				—				(1,707	)			(1,707	)
Issuance of 305,839 shares of common stock pursuant to stock-based compensation plans			—			3				2,490				—				—				—				2,493
Repurchase and cancellation of 8,373,398 shares of common stock under share repurchase program			—			(83	)			(349,886	)			—				—				—				(349,969	)
Repurchase and cancellation of 116,864 shares of common stock withheld for tax pursuant to stock-based compensation plans.			—			(1	)			(5,572	)			—				—				—				(5,573	)
Stock-based compensation expense			—			—				13,206				—				—				—				13,206
Forfeitures of 82,397 shares of unvested restricted common stock			—			(1	)			1				—				—				—				—
Balances - December 31, 2022		$	338,980		$	1,172			$	1,753,941			$	2,773,135			$	(177,649	)		$	1,359			$	4,690,938

Bank OZK Summary of Non-Interest Expense Unaudited
	Three Months Ended December 31,						Year Ended December 31,
		2023			2022			2023			2022
	(Dollars in thousands)
Salaries and employee benefits	$	66,270		$	59,946		$	258,846		$	226,373
Net occupancy and equipment		17,234			17,584			72,591			70,058
Other operating expenses:
Deposit insurance and assessments		15,803			2,710			30,351			9,610
Software and data processing		10,577			9,512			39,212			35,373
Professional and outside services		6,233			5,652			21,423			21,581
Advertising and public relations		5,153			2,987			16,150			8,797
Telecommunication services		2,251			2,134			8,865			7,986
Postage and supplies		2,121			1,906			7,981			7,146
ATM expense		1,957			1,834			7,681			6,331
Travel and meals		1,938			1,755			7,582			7,661
Amortization of CRA and tax credit investments		7,618			5,408			27,768			20,293
Other		7,856			7,585			31,111			30,512
Total non-interest expense	$	145,011		$	119,013		$	529,561		$	451,721

Bank OZK Summary of Total Loans Outstanding Unaudited
	December 31,
		2023							2022
	(Dollars in thousands)
Real estate:
Residential 1-4 family	$	961,338			3.6	%		$	981,567			4.7	%
Non-farm/non-residential		5,309,239			20.1				4,665,268			22.5
Construction/land development		11,653,487			44.0				8,215,056			39.5
Agricultural		256,423			1.0				239,689			1.2
Multifamily residential		2,064,106			7.8				1,503,398			7.2
Total real estate		20,244,593			76.5				15,604,978			75.1
Commercial and industrial		1,269,610			4.8				902,321			4.3
Consumer		2,965,042			11.2				2,445,851			11.8
Other		1,979,830			7.5				1,825,641			8.8
Total loans		26,459,075			100.0	%			20,778,791			100.0	%
Allowance for loan losses		(339,394	)						(208,858	)
Net loans	$	26,119,681						$	20,569,933

Bank OZK Allowance for Credit Losses Unaudited
	Allowance for Loan Losses				Reserve for Losses on Unfunded Loan Commitments			Total Allowance for Credit Losses
	(Dollars in thousands)
Three months ended December 31, 2023:
Balances – September 30, 2023	$	303,358			$	158,128		$	461,486
Net charge-offs		(4,090	)			—			(4,090	)
Provision for credit losses		40,126				3,706			43,832
Balances – December 31, 2023	$	339,394			$	161,834		$	501,228
Year ended December 31, 2023:
Balances – December 31, 2022	$	208,858			$	156,419		$	365,277
Net charge-offs		(29,519	)			—			(29,519	)
Provision for credit losses		160,055				5,415			165,470
Balances – December 31, 2023	$	339,394			$	161,834		$	501,228
Three months ended December 31, 2022:
Balances – September 30, 2022	$	200,098			$	135,537		$	335,635
Net charge-offs		(2,866	)			—			(2,866	)
Provision for credit losses		11,626				20,882			32,508
Balances – December 31, 2022	$	208,858			$	156,419		$	365,277
Year ended December 31, 2022:
Balances – December 31, 2021	$	217,380			$	71,609		$	288,989
Net charge-offs		(7,206	)			—			(7,206	)
Provision for credit losses		(1,316	)			84,810			83,494
Balances – December 31, 2022	$	208,858			$	156,419		$	365,277

Bank OZK Summary of Deposits – By Account Type Unaudited
		December 31,
			2023						2022
		(Dollars in thousands)
Non-interest bearing		$	4,095,874		14.9	%		$	4,658,451		21.7	%
Interest bearing:
Transaction (NOW)			4,486,372		16.4				4,097,532		19.1
Savings and money market			4,587,924		16.7				5,808,185		27.0
Time deposits			14,234,973		52.0				6,935,975		32.2
Total deposits		$	27,405,143		100.0	%		$	21,500,143		100.0	%

Bank OZK Summary of Deposits – By Customer Type Unaudited
	December 31,
		2023						2022
	(Dollars in thousands)
Non-interest bearing	$	4,095,874		14.9	%		$	4,658,451		21.7	%
Interest bearing:
Consumer and commercial:
Consumer – Non-Time		2,792,199		10.2				3,916,078		18.2
Consumer – Time		10,216,217		37.3				4,936,061		23.0
Commercial – Non-Time		2,439,175		8.9				2,741,007		12.7
Commercial – Time		767,566		2.8				516,477		2.4
Public funds		3,725,766		13.6				2,103,392		9.8
Brokered		2,655,317		9.7				2,050,294		9.5
Reciprocal		713,029		2.6				578,383		2.7
Total deposits	$	27,405,143		100.0	%		$	21,500,143		100.0	%

Bank OZK Selected Consolidated Financial Data Unaudited
	Three Months Ended December 31,											Year Ended December 31,
		2023				2022			% Change				2023				2022			% Change
	(Dollars in thousands, except per share amounts)
Income statement data:
Net interest income	$	370,548			$	332,488			11.4	%		$	1,439,485			$	1,142,242			26.0	%
Provision for credit losses		43,832				32,508			34.8				165,470				83,494			98.2
Non-interest income		37,027				27,544			34.4				122,549				114,503			7.0
Non-interest expense		145,011				119,013			21.8				529,561				451,721			17.2
Net income		175,132				162,825			7.6				690,839				564,090			22.5
Preferred stock dividends		4,047				4,047			—				16,187				16,621			(2.6	)
Net income available to common stockholders		171,079				158,832			7.7				674,596				547,520			23.2
Pre-tax pre-provision net revenue (1)		262,564				241,019			8.9				1,032,473				805,024			28.3
Common share and per common share data:
Diluted earnings per common share	$	1.50			$	1.34			11.9	%		$	5.87			$	4.54			29.3	%
Basic earnings per common share		1.51				1.35			11.9				5.89				4.55			29.5
Common stock dividends per share		0.37				0.33			12.1				1.42				1.26			12.7
Book value per share		42.42				37.13			14.2				42.42				37.13			14.2
Tangible book value per common share (1)		36.58				31.47			16.2				36.58				31.47			16.2
Weighted-average diluted shares outstanding (thousands)		113,756				118,201			(3.8	)			114,833				120,700			(4.9	)
End of period shares outstanding (thousands)		113,149				117,177			(3.4	)			113,149				117,177			(3.4	)
Balance sheet data at period end:
Total assets	$	34,237,457			$	27,656,568			23.8	%		$	34,237,457			$	27,656,568			23.8	%
Total loans		26,459,075				20,778,791			27.3				26,459,075				20,778,791			27.3
Non-purchased loans		26,195,030				20,400,154			28.4				26,195,030				20,400,154			28.4
Purchased loans		264,045				378,637			(30.3	)			264,045				378,637			(30.3	)
Allowance for loan losses		339,394				208,858			62.5				339,394				208,858			62.5
Foreclosed assets		61,720				6,616			832.9				61,720				6,616			832.9
Investment securities – AFS		3,244,371				3,491,613			(7.1	)			3,244,371				3,491,613			(7.1	)
Goodwill and other intangible assets, net		660,789				663,543			(0.4	)			660,789				663,543			(0.4	)
Deposits		27,405,143				21,500,143			27.5				27,405,143				21,500,143			27.5
Other borrowings		805,318				606,666			32.7				805,318				606,666			32.7
Subordinated notes		347,761				346,947			0.2				347,761				346,947			0.2
Subordinated debentures		121,652				121,591			0.1				121,652				121,591			0.1
Unfunded balance of closed loans		20,573,029				21,062,733			(2.3	)			20,573,029				21,062,733			(2.3	)
Reserve for losses on unfunded loan commitments		161,834				156,419			3.5				161,834				156,419			3.5
Preferred stock		338,980				338,980			—				338,980				338,980			—
Total common stockholders' equity (1)		4,800,021				4,350,599			10.3				4,800,021				4,350,599			10.3
Net unrealized losses on investment securities AFS included in stockholders' equity		(97,374	)			(177,649	)						(97,374	)			(177,649	)
Loan (including purchased loans) to deposit ratio		96.55	%			96.64	%						96.55	%			96.64	%
Selected ratios:
Return on average assets (2)		2.04	%			2.35	%						2.20	%			2.08	%
Return on average common stockholders' equity (1) (2)		14.58				14.76							14.93				12.66
Return on average tangible common stockholders' equity (1) (2)		16.99				17.48							17.50				14.97
Average common equity to total average assets		13.99				15.90							14.74				16.42
Net interest margin – FTE (2)		4.82				5.46							5.16				4.82
Efficiency ratio		35.33				32.84							33.67				35.75
Net charge-offs to average non-purchased loans (2) (3)		0.07				0.09							0.11				0.07
Net charge-offs to average total loans (2)		0.06				0.06							0.13				0.04
Nonperforming loans to total loans (4)		0.23				0.22							0.23				0.22
Nonperforming assets to total assets (4)		0.36				0.19							0.36				0.19
Allowance for loan losses to total loans (5)		1.28				1.01							1.28				1.01
Allowance for credit losses to total loans and unfunded loan commitments		1.07				0.87							1.07				0.87
Other information:
Non-accrual loans (4)	$	60,982			$	43,411						$	60,982			$	43,411
Accruing loans - 90 days past due (4)		—				—							—				—

⁽¹⁾  Calculations of pre-tax pre-provision net revenue, total common stockholders' equity, tangible book value per common share and returns on average common stockholders' equity and average tangible common stockholders' equity and the reconciliations to GAAP are included in the schedules accompanying this release.

⁽²⁾  Ratios for interim periods annualized based on actual days.

⁽³⁾  Excludes purchased loans and net charge-offs related to such loans.

⁽⁴⁾  Excludes purchased loans, except for their inclusion in total assets.

⁽⁵⁾  Excludes reserve for losses on unfunded loan commitments.

Bank OZK Selected Consolidated Financial Data (continued) Unaudited
	Three Months Ended
	December 31, 2023				September 30, 2023				% Change
	(Dollars in thousands, except per share amounts)
Income statement data:
Net interest income	$	370,548			$	367,261			0.9	%
Provision for credit losses		43,832				44,036			(0.5	)
Non-interest income		37,027				25,727			43.9
Non-interest expense		145,011				128,978			12.4
Net income		175,132				173,830			0.7
Preferred stock dividends		4,047				4,047			—
Net income available to common stockholders		171,079				169,746			0.8
Pre-tax pre-provision net revenue (1)		262,564				264,010			(0.5	)
Common share and per common share data:
Diluted earnings per common share	$	1.50			$	1.49			0.7	%
Basic earnings per common share		1.51				1.50			0.7
Common stock dividends per share		0.37				0.36			2.8
Book value per share		42.42				40.35			5.1
Tangible book value per common share (1)		36.58				34.50			6.0
Weighted-average diluted shares outstanding (thousands)		113,756				113,770			—
End of period shares outstanding (thousands)		113,149				113,136			—
Balance sheet data at period end:
Total assets	$	34,237,457			$	32,767,328			4.5	%
Total loans		26,459,075				25,331,740			4.5
Non-purchased loans		26,195,030				25,051,214			4.6
Purchased loans		264,045				280,526			(5.9	)
Allowance for loan losses		339,394				303,358			11.9
Foreclosed assets		61,720				68,738			(10.2	)
Investment securities – AFS		3,244,371				3,153,817			2.9
Goodwill and other intangible assets, net		660,789				660,789			—
Deposits		27,405,143				25,552,856			7.2
Other borrowings		805,318				1,430,192			(43.7	)
Subordinated notes		347,761				347,556			0.1
Subordinated debentures		121,652				121,652			—
Unfunded balance of closed loans		20,573,029				20,625,371			(0.3	)
Reserve for losses on unfunded loan commitments		161,834				158,128			2.3
Preferred stock		338,980				338,980			—
Total common stockholders' equity (1)		4,800,021				4,564,524			5.2
Net unrealized losses on investment securities AFS included in stockholders' equity		(97,374	)			(198,986	)
Loan (including purchased loans) to deposit ratio		96.55	%			99.13	%
Selected ratios:
Return on average assets (2)		2.04	%			2.13	%
Return on average common stockholders' equity (1) (2)		14.58				14.81
Return on average tangible common stockholders' equity (1) (2)		16.99				17.33
Average common equity to total average assets		13.99				14.38
Net interest margin – FTE (2)		4.82				5.05
Efficiency ratio		35.33				32.60
Net charge-offs to average non-purchased loans (2) (3)		0.07				0.17
Net charge-offs to average total loans (2)		0.06				0.15
Nonperforming loans to total loans (4)		0.23				0.25
Nonperforming assets to total assets (4)		0.36				0.40
Allowance for loan losses to total loans (5)		1.28				1.20
Allowance for credit losses to total loans and unfunded loan commitments		1.07				1.00
Other information:
Non-accrual loans (4)	$	60,982			$	62,648
Accruing loans - 90 days past due (4)		—				—

⁽¹⁾  Calculations of pre-tax pre-provision net revenue, total common stockholders' equity, tangible book value per common share and returns on average common stockholders' equity and average tangible common stockholders' equity and the reconciliations to GAAP are included in the schedules accompanying this release.

⁽²⁾  Ratios for interim periods annualized based on actual days.

⁽³⁾  Excludes purchased loans and net charge-offs related to such loans.

⁽⁴⁾  Excludes purchased loans, except for their inclusion in total assets.

⁽⁵⁾  Excludes reserve for losses on unfunded loan commitments.

Bank OZK Supplemental Quarterly Financial Data Unaudited
	12/31/23				9/30/23				6/30/23				3/31/23				12/31/22
	(Dollars in thousands)
Earnings summary:
Net interest income	$	370,548			$	367,261			$	356,824			$	344,852			$	332,488
Federal tax (FTE) adjustment		2,925				2,632				2,602				2,603				2,383
Net interest income (FTE)		373,473				369,893				359,426				347,455				334,871
Provision for credit losses		(43,832	)			(44,036	)			(41,774	)			(35,829	)			(32,508	)
Non-interest income		37,027				25,727				31,987				27,809				27,544
Non-interest expense		(145,011	)			(128,978	)			(129,355	)			(126,217	)			(119,013	)
Pre-tax income (FTE)		221,657				222,606				220,284				213,218				210,894
FTE adjustment		(2,925	)			(2,632	)			(2,602	)			(2,603	)			(2,383	)
Provision for income taxes		(43,600	)			(46,144	)			(45,717	)			(40,703	)			(45,686	)
Noncontrolling interest		(6	)			(37	)			(1	)			(12	)			54
Preferred stock dividend		(4,047	)			(4,047	)			(4,047	)			(4,047	)			(4,047	)
Net income available to common stockholders	$	171,079			$	169,746			$	167,917			$	165,853			$	158,832
Earnings per common share – diluted	$	1.50			$	1.49			$	1.47			$	1.41			$	1.34
Pre-tax pre-provision net revenue (1)	$	262,564			$	264,010			$	259,456			$	246,444			$	241,019
Selected balance sheet data at period end:
Total assets	$	34,237,457			$	32,767,328			$	30,761,870			$	28,971,170			$	27,656,568
Non-purchased loans		26,195,030				25,051,214				23,291,785				21,700,941				20,400,154
Purchased loans		264,045				280,526				315,661				361,065				378,637
Investment securities – AFS		3,244,371				3,153,817				3,262,366				3,422,031				3,491,613
Deposits		27,405,143				25,552,856				23,983,397				22,282,983				21,500,143
Unfunded balance of closed loans		20,573,029				20,625,371				21,119,761				20,965,040				21,062,733
Allowance for credit losses:
Balance at beginning of period	$	461,486			$	426,820			$	393,767			$	365,277			$	335,635
Net charge-offs		(4,090	)			(9,370	)			(8,721	)			(7,339	)			(2,866	)
Provision for credit losses		43,832				44,036				41,774				35,829				32,508
Balance at end of period	$	501,228			$	461,486			$	426,820			$	393,767			$	365,277
Allowance for loan losses	$	339,394			$	303,358			$	263,188			$	222,025			$	208,858
Reserve for losses on unfunded loan commitments		161,834				158,128				163,632				171,742				156,419
Total allowance for credit losses	$	501,228			$	461,486			$	426,820			$	393,767			$	365,277
Selected ratios:
Net interest margin – FTE (2)		4.82	%			5.05	%			5.32	%			5.54	%			5.46	%
Efficiency ratio		35.33				32.60				33.05				33.63				32.84
Net charge-offs to average non-purchased loans (2) (3)		0.07				0.17				0.03				0.15				0.09
Net charge-offs to average total loans (2)		0.06				0.15				0.15				0.14				0.06
Nonperforming loans to total loans (4)		0.23				0.25				0.15				0.15				0.22
Nonperforming assets to total assets (4)		0.36				0.40				0.32				0.34				0.19
Allowance for loan losses to total loans (5)		1.28				1.20				1.11				1.01				1.01
Allowance for credit losses to total loans and unfunded loan commitments		1.07				1.00				0.95				0.92				0.87
Loans past due 30 days or more, including past due non-accrual loans, to total loans (4)		0.20				0.21				0.14				0.15				0.13

⁽¹⁾  Calculations of pre-tax pre-provision net revenue and the reconciliation to GAAP are included in the schedules accompanying this release.

⁽²⁾  Ratios for interim periods annualized based on actual days.

⁽³⁾  Excludes purchased loans and net charge-offs related to such loans.

⁽⁴⁾  Excludes purchased loans, except for their inclusion in total assets.

⁽⁵⁾  Excludes reserve for losses on unfunded loan commitments.

Bank OZK Average Consolidated Balance Sheets and Net Interest Analysis – FTE Unaudited
	Three Months Ended December 31,																		Year Ended December 31,
		2023									2022									2023									2022
	Average Balance			Income/ Expense			Yield/Rate			Average Balance			Income/ Expense			Yield/Rate			Average Balance			Income/ Expense			Yield/Rate			Average Balance			Income/ Expense			Yield/Rate
	(Dollars in thousands)
ASSETS
Interest earning assets:
Interest earning deposits and federal funds sold	$	1,637,395		$	21,902		5.31	%		$	692,066		$	5,961		3.42	%		$	1,164,595		$	58,241		5.00	%		$	940,116		$	12,116		1.29	%
Investment securities:
Taxable		2,143,606			9,667		1.79				2,566,011			10,280		1.59				2,299,254			39,429		1.71				2,950,929			41,526		1.41
Tax-exempt – FTE		1,097,750			13,506		4.88				974,070			10,786		4.39				1,049,642			49,313		4.70				774,038			28,675		3.70
Non-purchased loans – FTE		25,590,389			557,932		8.65				19,728,477			367,136		7.38				23,258,595			1,968,696		8.46				18,744,652			1,159,161		6.18
Purchased loans		271,222			5,412		7.92				391,801			7,141		7.23				321,570			23,257		7.23				445,955			31,441		7.05
Total earning assets – FTE		30,740,362			608,419		7.85				24,352,425			401,304		6.54				28,093,656			2,138,936		7.61				23,855,690			1,272,919		5.34
Non-interest earning assets		2,538,592									2,508,505									2,550,276									2,472,672
Total assets	$	33,278,954								$	26,860,930								$	30,643,932								$	26,328,362
LIABILITIES AND STOCKHOLDERS' EQUITY
Interest bearing liabilities:
Deposits:
Savings and interest bearing transaction	$	9,004,724		$	64,165		2.83	%		$	9,519,104		$	26,543		1.11	%		$	9,152,060		$	211,498		2.31	%		$	9,588,372		$	48,344		0.50	%
Time deposits		13,280,889			154,309		4.61				6,321,731			26,687		1.67				10,543,800			415,552		3.94				5,680,395			46,229		0.81
Total interest bearing deposits		22,285,613			218,474		3.89				15,840,835			53,230		1.33				19,695,860			627,050		3.18				15,268,767			94,573		0.62
Other borrowings		863,828			11,329		5.20				753,605			8,533		4.49				803,797			41,669		5.18				673,932			13,034		1.93
Subordinated notes		347,661			2,631		3.00				346,847			2,631		3.01				347,356			10,439		3.01				346,538			10,439		3.01
Subordinated debentures		121,652			2,512		8.19				121,523			2,039		6.66				121,648			9,530		7.83				121,310			5,780		4.76
Total interest bearing liabilities		23,618,754			234,946		3.95				17,062,810			66,433		1.54				20,968,661			688,688		3.28				16,410,547			123,826		0.75
Non-interest bearing liabilities:
Non-interest bearing deposits		4,150,323									4,751,644									4,315,200									4,873,842
Other non-interest bearing liabilities		513,326									435,108									502,732									378,471
Total liabilities		28,282,403									22,249,562									25,786,593									21,662,860
Total stockholders' equity before noncontrolling interest		4,995,217									4,608,570									4,855,976									4,662,467
Noncontrolling interest		1,334									2,798									1,363									3,035
Total liabilities and stockholders' equity	$	33,278,954								$	26,860,930								$	30,643,932								$	26,328,362
Net interest income – FTE				$	373,473								$	334,871								$	1,450,248								$	1,149,093
Net interest margin – FTE							4.82	%								5.46	%								5.16	%								4.82	%
Core spread (1)							4.76	%								6.05	%								5.28	%								5.56	%

⁽¹⁾ Core spread is the difference between the yield on the Bank's non-purchased loans-FTE and the rate on its interest bearing deposits.

Bank OZK Reconciliation of Non-GAAP Financial Measures Calculation of Average Common Stockholders' Equity, Average Tangible Common Stockholders' Equity and the Annualized Returns on Average Common Stockholders' Equity and Average Tangible Common Stockholders' Equity Unaudited
	Three Months Ended
	December 31,								September 30,				Year Ended December 31,
		2023				2022				2023				2023				2022
	(Dollars in thousands)
Net income available to common stockholders	$	171,079			$	158,832			$	169,746			$	674,596			$	547,520
Average stockholders' equity before noncontrolling interest	$	4,995,217			$	4,608,570			$	4,885,620			$	4,855,976			$	4,662,467
Less average preferred stock		(338,980	)			(338,980	)			(338,980	)			(338,980	)			(338,980	)
Total average common stockholders' equity		4,656,237				4,269,590				4,546,640				4,516,996				4,323,487
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		—				(3,421	)			—				(821	)			(5,443	)
Total average intangibles		(660,789	)			(664,210	)			(660,789	)			(661,610	)			(666,232	)
Average tangible common stockholders' equity	$	3,995,448			$	3,605,380			$	3,885,851			$	3,855,386			$	3,657,255
Return on average common stockholders' equity(1)		14.58	%			14.76	%			14.81	%			14.93	%			12.66	%
Return on average tangible common stockholders' equity(1)		16.99	%			17.48	%			17.33	%			17.50	%			14.97	%

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

Calculation of Total Common Stockholders' Equity, Total Tangible Common Stockholders' Equity and Tangible Book Value per Common Share Unaudited
	December 31,								September 30,
		2023				2022				2023
	(In thousands, except per share amounts)
Total stockholders' equity before noncontrolling interest	$	5,139,001			$	4,689,579			$	4,903,504
Less preferred stock		(338,980	)			(338,980	)			(338,980	)
Total common stockholders' equity	$	4,800,021			$	4,350,599			$	4,564,524
Less intangible assets:
Goodwill		(660,789	)			(660,789	)			(660,789	)
Core deposit and other intangible assets, net of accumulated amortization		—				(2,754	)			—
Total intangibles		(660,789	)			(663,543	)			(660,789	)
Total tangible common stockholders' equity	$	4,139,232			$	3,687,056			$	3,903,735
Shares of common stock outstanding		113,149				117,177				113,136
Book value per common share	$	42.42			$	37.13			$	40.35
Tangible book value per common share	$	36.58			$	31.47			$	34.50

Calculation of Total Common Stockholders' Equity, Total Tangible Common Stockholders' Equity and the Ratio of Total Tangible Common Stockholders' Equity to Total Tangible Assets Unaudited
	December 31,
		2023				2022
	(Dollars in thousands)
Total stockholders' equity before noncontrolling interest	$	5,139,001			$	4,689,579
Less preferred stock		(338,980	)			(338,980	)
Total common stockholders' equity	$	4,800,021			$	4,350,599
Less intangible assets:
Goodwill		(660,789	)			(660,789	)
Core deposit and other intangible assets, net of accumulated amortization		—				(2,754	)
Total intangibles		(660,789	)			(663,543	)
Total tangible common stockholders' equity		4,139,232				3,687,056
Total assets	$	34,237,457			$	27,656,568
Less intangible assets:
Goodwill	$	(660,789	)		$	(660,789	)
Core deposit and other intangible assets, net of accumulated amortization		—				(2,754	)
Total intangibles		(660,789	)			(663,543	)
Total tangible assets	$	33,576,668			$	26,993,025
Ratio of total common stockholders' equity to total assets		14.02	%			15.73	%
Ratio of total tangible common stockholders' equity to total tangible assets		12.33	%			13.66	%

Calculation of Pre-Tax Pre-Provision Net Revenue Unaudited
	Three Months Ended																Year Ended
	Dec 31,			Sept 30,			June 30,			March 31,			Dec 31,				December 31,
		2023			2023			2023			2023			2022				2023			2022
	(Dollars in thousands)
Net income available to common stockholders	$	171,079		$	169,746		$	167,917		$	165,853		$	158,832			$	674,596		$	547,520
Preferred stock dividends		4,047			4,047			4,047			4,047			4,047				16,187			16,621
Earnings attributable to noncontrolling interest		6			37			1			12			(54	)			56			(51	)
Provision for income taxes		43,600			46,144			45,717			40,703			45,686				176,164			157,440
Provision for credit losses		43,832			44,036			41,774			35,829			32,508				165,470			83,494
Pre-tax pre-provision net revenue	$	262,564		$	264,010		$	259,456		$	246,444		$	241,019			$	1,032,473		$	805,024

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