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Bank OZK Announces Record Fourth Quarter and Full Year 2021 Earnings
Source: Nasdaq GlobeNewswire / 20 Jan 2022 15:01:01 America/Chicago
LITTLE ROCK, Arkansas, Jan. 20, 2022 (GLOBE NEWSWIRE) -- Bank OZK (the “Bank”) (Nasdaq: OZK) today announced that net income for the fourth quarter of 2021 was $149.8 million, a 24.3% increase from $120.5 million for the fourth quarter of 2020. Diluted earnings per common share for the fourth quarter of 2021 were a quarterly record $1.17, a 25.8% increase from $0.93 for the fourth quarter of 2020.
For the full year of 2021, net income was a record $579.0 million, a 98.4% increase from $291.9 million for the full year of 2020. Diluted earnings per common share for the full year of 2021 were a record $4.47, a 97.8% increase from $2.26 for the full year of 2020.
As a result of improved economic conditions and prospects for improvement in the U. S. economy, management recorded negative provision for credit losses of $8.0 million during the fourth quarter and $77.9 million for the full year of 2021, reducing the Bank’s total allowance for credit losses (“ACL”) from $377.3 million at December 31, 2020 to $289.0 million at December 31, 2021. The Bank’s provision for credit losses was $6.8 million during the fourth quarter and $203.6 million for the full year of 2020.
Pre-tax pre-provision net revenue (“PPNR”) was $186.0 million for the fourth quarter of 2021, a 14.2% increase from $162.9 million for the fourth quarter of 2020. PPNR was $675.0 million for the full year of 2021, a 16.4% increase from $579.8 million for the full year of 2020. The calculation of PPNR and the reconciliation to generally accepted accounting principles (“GAAP”) are included in the schedules accompanying this release.
The Bank’s annualized returns on average assets, average common stockholders’ equity and average tangible common stockholders’ equity for the fourth quarter of 2021 were 2.25%, 13.08% and 15.34%, respectively, compared to 1.79%, 11.36% and 13.53%, respectively, for the fourth quarter of 2020. The Bank’s returns on average assets, average common stockholder’s equity and average tangible common stockholders’ equity for the full year of 2021 were 2.17%, 13.01% and 15.32%, respectively, compared to 1.13%, 7.04% and 8.41%, respectively, for the full year of 2020. The calculation of the Bank’s returns on average common stockholders’ equity and average tangible common stockholders’ equity and the reconciliations to GAAP are included in the schedules accompanying this release.
George Gleason, Chairman and Chief Executive Officer stated, “We are pleased to report our excellent results for the fourth quarter and full year of 2021 – results that were record setting in many respects. We were particularly pleased to report our highest ever level of quarterly RESG loan originations, as organic growth is an important component of our long-term strategy to increase shareholder value. Our strong capital and liquidity, disciplined credit culture and outstanding team have us well positioned for the future.”
KEY BALANCE SHEET METRICS
Total loans were $18.31 billion at December 31, 2021, a 4.7% decrease from $19.21 billion at December 31, 2020. Non-purchased loans were $17.79 billion at December 31, 2021, a 3.3% decrease from $18.40 billion at December 31, 2020. Purchased loans, which consist of loans acquired in previous acquisitions, were $0.52 billion at December 31, 2021, a 36.1% decrease from $0.81 billion at December 31, 2020.
Deposits were $20.21 billion at December 31, 2021, a 5.8% decrease from $21.45 billion at December 31, 2020. Total assets were $26.53 billion at December 31, 2021, a 2.3% decrease from $27.16 billion at December 31, 2020.
Common stockholders’ equity was $4.50 billion at December 31, 2021, a 5.3% increase from $4.27 billion at December 31, 2020. Tangible common stockholders’ equity was $3.83 billion at December 31, 2021, a 6.4% increase from $3.60 billion at December 31, 2020. Book value per common share was $35.85 at December 31, 2021, an 8.5% increase from $33.03 at December 31, 2020. Tangible book value per common share was $30.52 at December 31, 2021, a 9.7% increase from $27.81 at December 31, 2020. The calculations of the Bank’s common stockholders’ equity, tangible common stockholders’ equity and tangible book value per common share and the reconciliations to GAAP are included in the schedules accompanying this release.
The Bank’s ratio of total common stockholders’ equity to total assets was 16.95% at December 31, 2021, compared to 15.73% at December 31, 2020. Its ratio of total tangible common stockholders’ equity to total tangible assets was 14.80% at December 31, 2021, compared to 13.58% at December 31, 2020. The calculation of the Bank’s ratio of total tangible common stockholders’ equity to total tangible assets and the reconciliation to GAAP are included in the schedules accompanying this release.
PREFERRED STOCK OFFERING
On November 4, 2021, the Bank completed its public offering of 14,000,000 shares of its 4.625% Series A Non-Cumulative Perpetual Preferred Stock (“Preferred Stock”), par value $0.01 per share, with a liquidation preference of $25 per share, which represents $350 million in aggregate liquidation preference. The Bank received net proceeds from the Preferred Stock, after deducting the initial purchaser discount and offering expenses, of $339.0 million.
SUBORDINATED DEBT REDEMPTION AND OFFERING
In July 2021, the Bank redeemed all of its $225 million of 5.50% Fixed-to-Floating rate Subordinated Notes at a redemption price equal to 100% of the principal amount of the subordinated notes plus accrued and unpaid interest. As a result of the subordinated debt redemption, the Bank recognized approximately $0.8 million in remaining unamortized debt issue cost as non-interest expense during the third quarter of 2021.
In September 2021, the Bank completed its public offering of $350 million in aggregate principal amount of its 2.75% Fixed-to-Floating rate Subordinated Notes (the “2.75% Notes”) due 2031, which bear interest at a fixed rate of 2.75% per annum until September 30, 2026. On October 1, 2026, the 2.75% Notes will bear interest at a floating rate equal to a benchmark (which is expected to be three-month SOFR) plus 209 basis points. The 2.75% Notes are unsecured, subordinated debt obligations and mature on October 1, 2031. As of December 31, 2021, the 2.75% Notes had a carrying value of $346.1 million and remaining unamortized debt issuance cost of $3.9 million.
STOCK REPURCHASE PROGRAM
In July 2021, the Bank adopted a stock repurchase program. In conjunction with the Bank’s Preferred Stock offering, its Board of Directors increased the size of its stock repurchase program from $300 million up to $650 million of the Bank’s outstanding common stock. During the quarter just ended, the Bank repurchased 3,387,421 shares at a weighted average cost of $46.16, for a total of $156.4 million. During 2021, the Bank repurchased 4,275,988 shares at a weighted average cost of $45.21, for a total of $193.4 million. The timing and amount of future repurchases will be determined by management based on a variety of factors such as the Bank’s capital position, liquidity, financial performance and alternative uses of capital, stock price, regulatory requirements and general market and economic conditions. The repurchase program may be suspended by the Bank at any time.
MANAGEMENT’S COMMENTS, CONFERENCE CALL, TRANSCRIPT AND FILINGS
In connection with this release, the Bank released management’s comments on its quarterly results, which are available at http://ir.ozk.com. This release should be read in conjunction with management’s comments on the quarterly results.
Management will conduct a conference call to take questions on these quarterly results and management’s comments at 10:00 a.m. CT (11:00 a.m. ET) on January 21, 2022. Interested parties may listen to this call by dialing 1-844-818-5110 (U.S. and Canada) or 210-229-8841 (internationally) and asking for the Bank OZK conference call. A recorded playback of the call will be available for one week following the call at 1-855-859-2056 (U.S. and Canada) or 404-537-3406 (internationally). The conference ID for this playback is 5324497. The call will be available live or in a recorded version on the Bank’s Investor Relations website at ir.ozk.com under “Company News/Webcasts.” The Bank will also provide a transcript of the conference call on its Investor Relations website.
The Bank files with the Federal Deposit Insurance Corporation (“FDIC”) annual, quarterly and current reports, proxy materials and other information required by the Securities Exchange Act of 1934, copies of which are available electronically at the FDIC’s website at https://efr.fdic.gov/fcxweb/efr/index.html and are also available on the Bank’s Investor Relations website at http://ir.ozk.com. To receive automated email alerts for these materials, please visit http://ir.ozk.com/EmailNotification to sign up.
NON-GAAP FINANCIAL MEASURES
This release contains certain non-GAAP financial measures. The Bank uses these non-GAAP financial measures, specifically return on average tangible common stockholders’ equity, tangible book value per common share, total common stockholders’ equity, total tangible common stockholders’ equity, the ratio of total tangible common stockholders’ equity to total tangible assets, and PPNR, to assess the strength of its capital, its ability to generate earnings on tangible capital invested by its shareholders and trends in its net revenue. These measures typically adjust GAAP financial measures to exclude intangible assets or provision for credit losses. Management believes presentation of these non-GAAP financial measures provides useful supplemental information which contributes to a proper understanding of the financial results and capital levels of the Bank. These non-GAAP disclosures should not be viewed as a substitute for financial results determined in accordance with GAAP, and they are not necessarily comparable to non-GAAP performance measures that may be presented by other banks. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are included in the tables at the end of this release under the caption “Reconciliation of Non-GAAP Financial Measures.”FORWARD-LOOKING STATEMENTS
This release and other communications by the Bank include certain “forward-looking statements” regarding the Bank’s plans, expectations, thoughts, beliefs, estimates, goals and outlook for the future that are intended to be covered by the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on management’s expectations as well as certain assumptions and estimates made by, and information available to, management at the time. Those statements are not guarantees of future results or performance and are subject to certain known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those expressed in, or implied by, such forward-looking statements. These risks, uncertainties and other factors include, but are not limited to: potential delays or other problems implementing the Bank’s growth, expansion and acquisition strategies, including delays in identifying satisfactory sites, hiring or retaining qualified personnel, obtaining regulatory or other approvals, obtaining permits and designing, constructing and opening new offices or relocating, selling or closing existing offices; the ability to enter into and/or close additional acquisitions; the availability of and access to capital; possible downgrades in the Bank’s credit ratings or outlook which could increase the costs of or decrease the availability of funding from capital markets; the ability to attract new or retain existing or acquired deposits or to retain or grow loans, including growth from unfunded closed loans; the ability to generate future revenue growth or to control future growth in non-interest expense; interest rate fluctuations, including changes in the yield curve between short-term and long-term interest rates or changes in the relative relationships of various interest rate indices; the potential impact of the phase-out of the London Interbank Offered Rate (“LIBOR”) or other changes involving LIBOR; competitive factors and pricing pressures, including their effect on the Bank’s net interest margin or core spread; general economic, unemployment, credit market and real estate market conditions, and the effect of such conditions on the creditworthiness of borrowers, collateral values, the value of investment securities and asset recovery values; changes in legal, financial and/or regulatory requirements; recently enacted and potential legislation and regulatory actions and the costs and expenses to comply with new and/or existing legislation and regulatory actions, including those in response to the COVID-19 pandemic such as the Coronavirus Aid, Relief and Economic Security Act, the Consolidated Appropriations Act of 2021, the American Rescue Plan Act of 2021, and any similar or related laws, rules and regulations; the impact of any future federal government shutdown and uncertainty regarding the federal government’s debt limit or changes in U.S. government monetary and fiscal policy; FDIC special assessments or changes to regular assessments; the ability to keep pace with technological changes, including changes regarding maintaining cybersecurity; the impact of failure in, or breach of, the Bank’s operational or security systems or infrastructure, or those of third parties with whom it does business, including as a result of cyber-attacks or an increase in the incidence or severity of fraud, illegal payments, security breaches or other illegal acts impacting the Bank or its customers; natural disasters or acts of war or terrorism; the adverse effects of the COVID-19 pandemic, including the duration of the pandemic and actions taken to contain or treat COVID-19, on the Bank, the Bank’s customers, the Bank’s staff, the global economy and financial markets; potential impact of supply chain disruptions or inflation; national, international or political instability; impairment of the Bank’s goodwill or other intangible assets; adoption of new accounting standards, or changes in existing standards; and adverse results (including costs, fines, reputational harm and/or other negative effects) from current or future litigation, regulatory examinations or other legal and/or regulatory actions or rulings as well as other factors identified in this press release or as detailed from time to time in the other public reports the Bank files with the FDIC, including those factors described in the disclosures under the headings “Forward-Looking Information” and “Item 1A. Risk Factors” in the Bank’s most recent Annual Report on Form 10-K for the year ended December 31, 2020 and its quarterly reports on Form 10-Q. Should one or more of the foregoing risks materialize, or should underlying assumptions prove incorrect, actual results or outcomes may vary materially from those projected in, or implied by, such forward-looking statements. The Bank disclaims any obligation to update or revise any forward-looking statements based on the occurrence of future events, the receipt of new information or otherwise.
GENERAL INFORMATION
Bank OZK (Nasdaq: OZK) is a regional bank providing innovative financial solutions delivered by expert bankers with a relentless pursuit of excellence. Headquartered in Little Rock, Arkansas, Bank OZK conducts operations with over 240 offices in eight states including Arkansas, Georgia, Florida, North Carolina, Texas, California, New York and Mississippi. Bank OZK can be found at www.ozk.com and on Facebook, Twitter and LinkedIn or contacted at (501) 978-2265 or P. O. Box 8811, Little Rock, Arkansas 72231-8811.
Investor Contact: Tim Hicks (501) 978-2336 Media Contact: Candace Graham (501) 320-4165 Bank OZK
Consolidated Balance Sheets
UnauditedDecember 31, 2021 2020 (Dollars in thousands, except per share amounts) ASSETS Cash and cash equivalents $ 2,053,829 $ 2,393,662 Investment securities ― available for sale ("AFS") 3,916,733 3,405,351 Investment securities ― trading 14,957 — Federal Home Loan Bank of Dallas and other bankers' bank stocks 40,788 38,486 Non-purchased loans 17,791,610 18,401,495 Purchased loans 516,215 807,673 Allowance for loan losses (217,380 ) (295,824 ) Net loans 18,090,445 18,913,344 Premises and equipment, net 695,857 738,842 Foreclosed assets 5,744 11,085 Accrued interest receivable 83,025 88,077 Bank owned life insurance (“BOLI”) 774,822 758,071 Goodwill and other intangible assets, net 669,063 675,458 Other, net 185,167 140,220 Total assets $ 26,530,430 $ 27,162,596 LIABILITIES AND STOCKHOLDERS’ EQUITY Deposits: Demand non-interest bearing $ 4,983,788 $ 3,996,546 Savings and interest bearing transaction 9,245,727 8,160,982 Time 5,979,619 9,292,828 Total deposits 20,209,134 21,450,356 Repurchase agreements with customers 6,115 8,013 Other borrowings 750,206 750,928 Subordinated notes 346,133 224,047 Subordinated debentures 121,033 120,475 Reserve for losses on unfunded loan commitments 71,609 81,481 Accrued interest payable and other liabilities 186,840 251,940 Total liabilities 21,691,070 22,887,240 Commitments and contingencies Stockholders’ equity: Preferred stock; $0.01 par value; 100,000,000 shares authorized;
14,000,000 and no shares issued and outstanding at December 31,
2021 and 2020, respectively338,980 — Common stock; $0.01 par value; 300,000,000 shares authorized;
125,443,748 and 129,350,448 shares issued and outstanding at
December 31, 2021 and 2020, respectively1,254 1,294 Additional paid-in capital 2,093,702 2,265,850 Retained earnings 2,378,466 1,946,875 Accumulated other comprehensive income 23,841 58,252 Total stockholders’ equity before noncontrolling interest 4,836,243 4,272,271 Noncontrolling interest 3,117 3,085 Total stockholders’ equity 4,839,360 4,275,356 Total liabilities and stockholders’ equity $ 26,530,430 $ 27,162,596 Bank OZK
Consolidated Statements of Income
UnauditedThree Months Ended
December 31,Year Ended
December 31,2021 2020 2021 2020 (Dollars in thousands, except per share amounts) Interest income: Non-purchased loans $ 256,021 $ 243,064 $ 972,660 $ 944,354 Purchased loans 11,190 16,069 46,174 70,812 Investment securities: Taxable 9,448 9,066 36,234 40,547 Tax-exempt 2,869 4,767 13,729 19,403 Deposits with banks and federal funds sold 953 428 2,510 5,665 Total interest income 280,481 273,394 1,071,307 1,080,781 Interest expense: Deposits 9,514 30,607 64,422 171,813 Repurchase agreements with customers 3 6 17 23 Other borrowings 1,017 1,011 4,012 3,179 Subordinated notes 2,631 3,207 9,386 12,758 Subordinated debentures 935 963 3,750 4,384 Total interest expense 14,100 35,794 81,587 192,157 Net interest income 266,381 237,600 989,720 888,624 Provision for credit losses (7,992 ) 6,750 (77,938 ) 203,639 Net interest income after provision for credit losses 274,373 230,850 1,067,658 684,985 Non-interest income: Service charges on deposit accounts: NSF/Overdraft fees 4,315 4,024 14,962 14,782 All other service charges 7,149 5,959 27,656 22,917 Trust income 2,141 1,909 8,506 7,544 BOLI income: Increase in cash surrender value 4,901 5,034 19,640 20,239 Death benefits 618 — 2,028 608 Loan service, maintenance and other fees 3,148 3,797 13,959 14,257 Gains on sales of other assets 1,330 5,189 9,962 6,863 Net gains on investment securities 504 — 504 4,467 Other 5,589 2,749 18,321 12,931 Total non-interest income 29,695 28,661 115,538 104,608 Non-interest expense: Salaries and employee benefits 55,034 53,832 214,567 206,834 Net occupancy and equipment 17,004 15,617 66,801 63,379 Other operating expenses 38,068 33,945 148,907 143,200 Total non-interest expense 110,106 103,394 430,275 413,413 Income before taxes 193,962 156,117 752,921 376,180 Provision for income taxes 44,197 35,607 173,888 84,314 Net income 149,765 120,510 579,033 291,866 Earnings attributable to noncontrolling interest (5 ) 3 (32 ) 32 Net income available to common stockholders $ 149,760 $ 120,513 $ 579,001 $ 291,898 Basic earnings per common share $ 1.17 $ 0.93 $ 4.49 $ 2.26 Diluted earnings per common share $ 1.17 $ 0.93 $ 4.47 $ 2.26
Bank OZK
Consolidated Statements of Stockholders’ Equity
UnauditedPreferred
StockCommon
StockAdditional
Paid-In
CapitalRetained
EarningsAccumulated
Other
Comprehensive
IncomeNon-
Controlling
InterestTotal (Dollars in thousands, except per share amounts) Three months ended December 31, 2021: Balances – September 30, 2021 $ — $ 1,288 $ 2,245,012 $ 2,266,234 $ 40,706 $ 3,112 $ 4,556,352 Net income — — — 149,765 — — 149,765 Earnings attributable to noncontrolling
interest— — — (5 ) — 5 — Total other comprehensive loss — — — — (16,865 ) — (16,865 ) Common stock dividends, $0.29 per
share— — — (37,528 ) — — (37,528 ) Issuance of 14,000,000 shares of
preferred stock, net of offering costs338,980 — — — — — 338,980 Issuance of 31,400 shares of common
stock for exercise of stock options— — 1,131 — — — 1,131 Repurchase and cancellation of 3,387,421
shares of common stock under share
repurchase program— (34 ) (156,410 ) — — — (156,444 ) Stock-based compensation expense — — 3,969 — — — 3,969 Forfeitures of 18,050 shares of unvested
restricted common stock— — — — — — — Balances – December 31, 2021 $ 338,980 $ 1,254 $ 2,093,702 $ 2,378,466 $ 23,841 $ 3,117 $ 4,839,360 Year ended December 31, 2021: Balances – December 31, 2020 $ — $ 1,294 $ 2,265,850 $ 1,946,875 $ 58,252 $ 3,085 $ 4,275,356 Net income — — — 579,033 — — 579,033 Earnings attributable to noncontrolling
interest— — — (32 ) — 32 — Total other comprehensive loss — — — — (34,411 ) — (34,411 ) Common stock dividends, $1.1325 per
share— — — (147,410 ) — — (147,410 ) Issuance of 14,000,000 shares of
preferred stock, net of offering costs338,980 — — — — — 338,980 Issuance of 207,650 shares of common
stock for exercise of stock options— 2 7,224 — — — 7,226 Issuance of 332,831 shares of unvested
restricted common stock— 3 (3 ) — — — — Repurchase and cancellation of 4,275,988
shares of common stock under share
repurchase program— (43 ) (193,401 ) — — — (193,444 ) Repurchase and cancellation of 55,893
shares of common stock withheld for
taxes pursuant to restricted stock
vesting— (1 ) (1,976 ) — — — (1,977 ) Stock-based compensation expense — — 16,007 — — — 16,007 Forfeitures of 115,300 shares of unvested
restricted common stock— (1 ) 1 — — — — Balances – December 31, 2021 $ 338,980 $ 1,254 $ 2,093,702 $ 2,378,466 $ 23,841 $ 3,117 $ 4,839,360 Bank OZK
Consolidated Statements of Stockholders’ Equity
UnauditedCommon
StockAdditional
Paid-In
CapitalRetained
EarningsAccumulated
Other
Comprehensive
IncomeNon-
Controlling
InterestTotal (Dollars in thousands, except per share amounts) Three months ended December 31, 2020: Balances – September 30, 2020 $ 1,293 $ 2,261,864 $ 1,862,012 $ 61,116 $ 3,088 $ 4,189,373 Net income — — 120,510 — — 120,510 Earnings attributable to noncontrolling
interest— — 3 — (3 ) — Total other comprehensive loss — — — (2,864 ) — (2,864 ) Common stock dividends, $0.275 per share — — (35,650 ) — — (35,650 ) Issuance of 39,900 shares of common
stock for exercise of stock options— 991 — — — 991 Stock-based compensation expense — 2,996 — — — 2,996 Forfeitures of 31,525 shares of unvested
restricted common stock1 (1 ) — — — — Balances – December 31, 2020 $ 1,294 $ 2,265,850 $ 1,946,875 $ 58,252 $ 3,085 $ 4,275,356 Year ended December 31, 2020: Balances – December 31, 2019 $ 1,289 $ 2,251,824 $ 1,869,983 $ 27,255 $ 3,117 $ 4,153,468 Cumulative effect of change
in accounting principle— — (75,344 ) — — (75,344 ) Balances – January 1, 2020 1,289 2,251,824 1,794,639 27,255 3,117 4,078,124 Net income — — 291,866 — — 291,866 Earnings attributable to noncontrolling
interest— — 32 — (32 ) — Total other comprehensive income — — — 30,997 — 30,997 Common stock dividends,
$1.0775 per share— — (139,662 ) — — (139,662 ) Issuance of 44,200 shares of common
stock for exercise of stock options— 1,036 — — — 1,036 Issuance of 493,761 shares of unvested
restricted common stock5 (5 ) — — — — Repurchase and cancellation of 61,873
shares of common stock withheld for
taxes pursuant to restricted stock
vesting(1 ) (1,852 ) — — — (1,853 ) Stock-based compensation expense — 14,848 — — — 14,848 Forfeitures of 76,664 shares of unvested
restricted common stock1 (1 ) — — — — Balances – December 31, 2020 $ 1,294 $ 2,265,850 $ 1,946,875 $ 58,252 $ 3,085 $ 4,275,356 Bank OZK
Summary of Non-Interest Expense
UnauditedThree Months Ended
December 31,Year Ended
December 31,2021 2020 2021 2020 (Dollars in thousands) Salaries and employee benefits $ 55,034 $ 53,832 $ 214,567 $ 206,834 Net occupancy and equipment 17,004 15,617 66,801 63,379 Other operating expenses: Professional and outside services 7,880 6,988 29,013 29,605 Software and data processing 6,165 5,729 23,860 21,279 Deposit insurance and assessments 2,125 3,647 11,185 15,247 Telecommunication services 2,064 2,296 8,427 9,159 Postage and supplies 1,909 1,709 6,627 7,462 ATM expense 1,639 1,490 6,255 5,256 Travel and meals 1,883 835 5,694 4,336 Writedowns of foreclosed and other assets 985 1,582 3,461 3,669 Loan collection and repossession expense 587 481 2,044 3,062 Advertising and public relations 1,151 1,086 2,772 6,050 Amortization of intangibles 1,517 1,794 6,394 9,085 Amortization of CRA and tax credit investments 2,755 821 15,078 8,279 Other 7,408 5,487 28,097 20,711 Total non-interest expense $ 110,106 $ 103,394 $ 430,275 $ 413,413 Bank OZK
Summary of Total Loans Outstanding
UnauditedDecember 31, 2021 2020 (Dollars in thousands) Real estate: Residential 1-4 family $ 887,024 4.8 % $ 911,115 4.7 % Non-farm/non-residential 3,782,892 20.7 4,267,147 22.2 Construction/land development 8,246,674 45.0 7,993,467 41.6 Agricultural 247,727 1.4 204,868 1.1 Multifamily residential 934,845 5.1 856,297 4.5 Total real estate 14,099,162 77.0 14,232,894 74.1 Commercial and industrial 510,784 2.8 842,206 4.4 Consumer 2,185,429 11.9 2,393,964 12.5 Other 1,512,450 8.3 1,740,104 9.0 Total loans 18,307,825 100.0 % 19,209,168 100.0 % Allowance for loan losses (217,380 ) (295,824 ) Net loans $ 18,090,445 $ 18,913,344 Bank OZK
Allowance for Credit Losses
UnauditedAllowance for Loan Losses Reserve for Losses on Unfunded Loan Commitments Total Allowance for Credit Losses (Dollars in thousands) Three months ended December 31, 2021: Balances – September 30, 2021 $ 237,722 $ 61,076 $ 298,798 Net charge-offs (1,817 ) — (1,817 ) Provision for credit losses (18,525 ) 10,533 (7,992 ) Balances – December 31, 2021 $ 217,380 $ 71,609 $ 288,989 Year ended December 31, 2021: Balances – December 31, 2020 $ 295,824 $ 81,481 $ 377,305 Net charge-offs (10,378 ) — (10,378 ) Provision for credit losses (68,066 ) (9,872 ) (77,938 ) Balances – December 31, 2021 $ 217,380 $ 71,609 $ 288,989 Three months ended December 31, 2020: Balances – September 30, 2020 $ 308,847 $ 68,426 $ 377,273 Net charge-offs (6,718 ) — (6,718 ) Provision for credit losses (6,305 ) 13,055 6,750 Balances – December 31, 2020 $ 295,824 $ 81,481 $ 377,305 Year ended December 31, 2020: Balances – December 31, 2019 $ 108,525 $ — $ 108,525 Adoption of CECL (1) methodology 39,588 54,924 94,512 Balances – January 1, 2020 148,113 54,924 203,037 Net charge-offs (29,371 ) — (29,371 ) Provision for credit losses 177,082 26,557 203,639 Balances – December 31, 2020 $ 295,824 $ 81,481 $ 377,305 (1) Current Expected Credit Loss.
Bank OZK
Summary of Deposits – By Account Type
UnauditedDecember 31, 2021 2020 (Dollars in thousands) Non-interest bearing $ 4,983,788 24.7 % $ 3,996,546 18.6 % Interest bearing: Transaction (NOW) 3,412,369 16.9 3,124,007 14.6 Savings and money market 5,833,358 28.9 5,036,975 23.5 Time deposits less than $100 1,801,454 8.9 3,075,845 14.3 Time deposits of $100 or more 4,178,165 20.6 6,216,983 29.0 Total deposits $ 20,209,134 100.0 % $ 21,450,356 100.0 % Summary of Deposits – By Customer Type
UnauditedDecember 31, 2021 2020 (Dollars in thousands) Non-Interest Bearing $ 4,983,788 24.7 % $ 3,996,546 18.6 % Interest Bearing: Consumer and Commercial: Consumer – Non-Time 4,334,378 21.4 3,506,014 16.3 Consumer – Time 4,318,742 21.4 6,511,664 30.4 Commercial – Non-Time 2,634,817 13.0 2,178,253 10.2 Commercial – Time 905,347 4.5 1,137,040 5.3 Public Funds 2,094,800 10.4 2,004,593 9.3 Brokered 452,137 2.2 1,600,116 7.5 Reciprocal 485,125 2.4 516,130 2.4 Total deposits $ 20,209,134 100.0 % $ 21,450,356 100.0 % Bank OZK
Selected Consolidated Financial Data
UnauditedThree Months Ended
December 31,Year Ended
December 31,2021 2020 % Change 2021 2020 % Change (Dollars in thousands, except per share amounts) Income statement data: Net interest income $ 266,381 $ 237,600 12.1 % $ 989,720 $ 888,624 11.4 % Provision for credit losses (7,992 ) 6,750 (218.4 ) (77,938 ) 203,639 (138.3 ) Non-interest income 29,695 28,661 3.6 115,538 104,608 10.4 Non-interest expense 110,106 103,394 6.5 430,275 413,413 4.1 Net income available to common stockholders 149,760 120,513 24.3 579,001 291,898 98.4 Pre-tax pre-provision net revenue (1) 185,970 162,867 14.2 674,983 579,819 16.4 Common share and per common share data: Net income per share − diluted $ 1.17 $ 0.93 25.8 % $ 4.47 $ 2.26 97.8 % Net income per share − basic 1.17 0.93 25.8 4.49 2.26 98.7 Dividends per share 0.29 0.275 5.5 1.1325 1.0775 5.1 Book value per share 35.85 33.03 8.5 35.85 33.03 8.5 Tangible book value per share (1) 30.52 27.81 9.7 30.52 27.81 9.7 Weighted-average diluted shares outstanding (thousands) 128,246 129,523 (1.0 ) 129,618 129,435 0.1 End of period shares outstanding (thousands) 125,444 129,350 (3.0 ) 125,444 129,350 (3.0 ) Balance sheet data at period end: Total assets $ 26,530,430 $ 27,162,596 (2.3 )% $ 26,530,430 $ 27,162,596 (2.3 )% Total loans 18,307,825 19,209,168 (4.7 ) 18,307,825 19,209,168 (4.7 ) Non-purchased loans 17,791,610 18,401,495 (3.3 ) 17,791,610 18,401,495 (3.3 ) Purchased loans 516,215 807,673 (36.1 ) 516,215 807,673 (36.1 ) Allowance for loan losses 217,380 295,824 (26.5 ) 217,380 295,824 (26.5 ) Foreclosed assets 5,744 11,085 (48.2 ) 5,744 11,085 (48.2 ) Investment securities − AFS 3,916,733 3,405,351 15.0 3,916,733 3,405,351 15.0 Goodwill and other intangible assets, net 669,063 675,458 (0.9 ) 669,063 675,458 (0.9 ) Deposits 20,209,134 21,450,356 (5.8 ) 20,209,134 21,450,356 (5.8 ) Other borrowings 750,206 750,928 (0.1 ) 750,206 750,928 (0.1 ) Subordinated notes 346,133 224,047 54.5 346,133 224,047 54.5 Subordinated debentures 121,033 120,475 0.5 121,033 120,475 0.5 Unfunded balance of closed loans 13,619,578 11,847,117 15.0 13,619,578 11,847,117 15.0 Reserve for losses on unfunded loan commitments 71,609 81,481 (12.11 ) 71,609 81,481 (12.11 ) Preferred stock 338,980 — NM 338,980 — NM Total common stockholders’ equity (1) 4,497,263 4,272,271 5.3 4,497,263 4,272,271 5.3 Net unrealized gains on investment securities AFS
included in stockholders’ equity23,841 58,252 23,841 58,252 Loan (including purchased loans) to deposit ratio 90.59 % 89.55 % 90.59 % 89.55 % Selected ratios: Return on average assets (2) 2.25 % 1.79 % 2.17 % 1.13 % Return on average common stockholders’ equity (1) (2) 13.08 11.36 13.01 7.04 Return on average tangible common stockholders’ equity (1) (2) 15.34 13.53 15.32 8.41 Net interest margin – FTE (2) 4.41 3.88 4.09 3.81 Efficiency ratio 37.06 38.61 38.76 41.37 Net charge-offs to average non-purchased loans (2) (3) 0.05 0.14 0.06 0.09 Net charge-offs to average total loans (2) 0.04 0.14 0.06 0.16 Nonperforming loans to total loans (4) 0.19 0.25 0.19 0.25 Nonperforming assets to total assets (4) 0.15 0.21 0.15 0.21 Allowance for loan losses to total loans (5) 1.19 1.54 1.19 1.54 Other information: Non-accrual loans (4) $ 33,274 $ 44,402 $ 33,274 $ 44,402 Accruing loans − 90 days past due (4) — — — — Troubled and restructured non-purchased loans − accruing (4) 1,285 1,483 1,285 1,483 (1) Calculations of pre-tax pre-provision net revenue, total common stockholders’ equity, tangible book value per common share and returns on average common stockholders’ equity and average tangible common stockholders’ equity and the reconciliations to GAAP are included in the schedules accompanying this release.
(2) Ratios for interim periods annualized based on actual days.
(3) Excludes purchased loans and net charge-offs related to such loans.
(4) Excludes purchased loans, except for their inclusion in total assets.
(5) Excludes reserve for losses on unfunded loan commitments.
NM – Not meaningfulSelected Consolidated Financial Data (continued)
UnauditedThree Months Ended December 31, September 30, 2021 2021 % Change (Dollars in thousands, except per share amounts) Income statement data: Net interest income $ 266,381 $ 247,957 7.4 % Provision for credit losses (7,992 ) (7,454 ) 7.2 Non-interest income 29,695 25,984 14.3 Non-interest expense 110,106 110,397 (0.3 ) Net income available to common stockholders 149,760 130,290 14.9 Pre-tax pre-provision net revenue (1) 185,970 163,544 13.7 Common share and per common share data: Earnings per share − diluted $ 1.17 $ 1.00 17.0 % Earnings per share − basic 1.17 1.01 15.8 Dividends per share 0.29 0.285 1.8 Book value per share 35.85 35.35 1.4 Tangible book value per share (1) 30.52 30.14 1.3 Weighted-average diluted shares outstanding (thousands) 128,246 129,929 (1.3 ) End of period shares outstanding (thousands) 125,444 128,818 (2.6 ) Balance sheet data at period end: Total assets $ 26,530,430 $ 26,143,367 1.5 % Total loans 18,307,825 18,305,303 0.1 Non-purchased loans 17,791,610 17,707,452 0.5 Purchased loans 516,215 597,851 (13.7 ) Allowance for loan losses 217,380 237,722 (8.6 ) Foreclosed assets 5,744 9,444 (39.2 ) Investment securities − AFS 3,916,733 3,846,496 1.8 Goodwill and other intangible assets, net 669,063 670,580 (0.2 ) Deposits 20,209,134 20,102,440 0.5 Other borrowings 750,206 750,217 (0.1 ) Subordinated notes 346,133 345,927 0.1 Subordinated debentures 121,033 120,892 0.1 Unfunded balance of closed loans 13,619,578 12,385,369 10.0 Reserve for losses on unfunded loan commitments 71,609 61,076 17.2 Preferred stock 338,980 — NM Total common stockholders’ equity (1) 4,497,263 4,553,240 (1.2 ) Net unrealized gains on investment securities AFS
included in stockholders’ equity23,841 40,706 Loan (including purchased loans) to deposit ratio 90.59 % 91.06 % Selected ratios: Return on average assets (2) 2.25 % 1.98 % Return on average common stockholders’ equity (1) (2) 13.08 11.41 Return on average tangible common stockholders’ equity (1) (2) 15.34 13.39 Net interest margin – FTE (2) 4.41 4.16 Efficiency ratio 37.06 40.14 Net charge-offs to average non-purchased loans (2) (3) 0.05 0.04 Net charge-offs to average total loans (2) 0.04 0.03 Nonperforming loans to total loans (4) 0.19 0.20 Nonperforming assets to total assets (4) 0.15 0.17 Allowance for loan losses to total loans (5) 1.19 1.30 Other information: Non-accrual loans (4) $ 33,274 $ 34,920 Accruing loans − 90 days past due (4) — — Troubled and restructured non-purchased loans − accruing (4) 1,285 1,253 (1) Calculations of pre-tax pre-provision net revenue, total common stockholders’ equity, tangible book value per common share and returns on average common stockholders’ equity and average tangible common stockholders’ equity and the reconciliations to GAAP are included in the schedules accompanying this release.
(2) Ratios for interim periods annualized based on actual days.
(3) Excludes purchased loans and net charge-offs related to such loans.
(4) Excludes purchased loans, except for their inclusion in total assets.
(5) Excludes reserve for losses on unfunded loan commitments.
NM – Not meaningfulBank OZK
Supplemental Quarterly Financial Data
Unaudited3/31/20 6/30/20 9/30/20 12/31/20 3/31/21 6/30/21 9/30/21 12/31/21 (Dollars in thousands) Earnings Summary: Net interest income $ 209,775 $ 216,593 $ 224,657 $ 237,600 $ 234,636 $ 240,746 $ 247,957 $ 266,381 Federal tax (FTE) adjustment 1,133 1,753 1,605 1,533 1,275 1,355 1,106 1,009 Net interest income (FTE) 210,908 218,346 226,262 239,133 235,911 242,101 249,063 267,390 Provision for credit losses (117,663 ) (72,026 ) (7,200 ) (6,750 ) 31,559 30,932 7,454 7,992 Non-interest income 27,680 21,591 26,676 28,661 32,117 27,742 25,984 29,695 Non-interest expense (103,425 ) (100,953 ) (105,641 ) (103,394 ) (106,059 ) (103,711 ) (110,397 ) (110,106 ) Pretax income (FTE) 17,500 66,958 140,097 157,650 193,528 197,064 172,104 194,971 FTE adjustment (1,133 ) (1,753 ) (1,605 ) (1,533 ) (1,275 ) (1,355 ) (1,106 ) (1,009 ) Provision for income taxes (4,509 ) (14,948 ) (29,251 ) (35,607 ) (43,818 ) (45,161 ) (40,713 ) (44,197 ) Noncontrolling interest 8 9 12 3 (19 ) (13 ) 5 (5 ) Net income available to common stockholders $ 11,866 $ 50,266 $ 109,253 $ 120,513 $ 148,416 $ 150,535 $ 130,290 $ 149,760 Earnings per common share – diluted $ 0.09 $ 0.39 $ 0.84 $ 0.93 $ 1.14 $ 1.16 $ 1.00 $ 1.17 PPNR 134,030 137,231 145,692 162,867 160,694 164,777 163,544 185,970 Non-interest Income: Service charges on deposit accounts: NSF/Overdraft fees $ 4,562 $ 2,702 $ 3,494 $ 4,024 $ 3,323 $ 3,244 $ 4,080 $ 4,315 All other service charges 5,447 5,579 5,933 5,959 6,342 7,067 7,097 7,149 Trust income 1,939 1,759 1,936 1,909 2,206 1,911 2,247 2,141 BOLI income: Increase in cash surrender value 5,067 5,057 5,081 5,034 4,881 4,919 4,940 4,901 Death benefits 608 — — — 1,409 — — 618 Loan service, maintenance and other fees 3,716 3,394 3,351 3,797 3,551 3,953 3,307 3,148 Gains on sales of other assets 161 621 891 5,189 5,828 2,341 463 1,330 Net gains on investment securities 2,223 — 2,244 — — — — 504 Other 3,957 2,479 3,746 2,749 4,577 4,307 3,850 5,589 Total non-interest income $ 27,680 $ 21,591 $ 26,676 $ 28,661 $ 32,117 $ 27,742 $ 25,984 $ 29,695 Non-interest Expense: Salaries and employee benefits $ 51,473 $ 48,410 $ 53,119 $ 53,832 $ 53,645 $ 52,119 $ 53,769 $ 55,034 Net occupancy and equipment 15,330 15,756 16,676 15,617 16,468 16,168 17,161 17,004 Other operating expenses 36,622 36,787 35,846 33,945 35,946 35,424 39,467 38,068 Total non-interest expense $ 103,425 $ 100,953 $ 105,641 $ 103,394 $ 106,059 $ 103,711 $ 110,397 $ 110,106 Balance Sheet Data: Total assets $ 24,565,810 $ 26,380,409 $ 26,888,308 $ 27,162,596 $ 27,276,892 $ 26,605,938 $ 26,143,367 $ 26,530,430 Non-purchased loans 17,030,378 18,247,431 18,419,958 18,401,495 17,979,435 17,611,848 17,707,452 17,791,610 Purchased loans 1,197,826 1,063,647 938,485 807,673 735,630 659,822 597,851 516,215 Investment securities – AFS 2,816,556 3,299,944 3,468,243 3,405,351 4,162,479 4,693,396 3,846,496 3,916,733 Deposits 18,809,190 20,723,598 21,287,405 21,450,356 21,296,442 20,706,777 20,102,440 20,209,134 Unfunded balance of closed loans 11,334,737 11,411,441 11,604,614 11,847,117 11,780,099 11,709,818 12,385,369 13,619,578 Preferred stock — — — — — — — 338,980 Total stockholders' equity before noncontrolling interest 4,083,150 4,110,666 4,186,285 4,272,271 4,383,205 4,501,676 4,553,240 4,836,243 Bank OZK
Supplemental Quarterly Financial Data (Continued)
Unaudited3/31/20 6/30/20 9/30/20 12/31/20 3/31/21 6/30/21 9/30/21 12/31/21 (Dollars in thousands) Allowance for Credit Losses: Balance at beginning of period $ 108,525 $ 316,409 $ 374,494 $ 377,273 $ 377,305 $ 342,307 $ 307,564 $ 298,798 Adoption of CECL (1) methodology 94,512 — — — — — — — Net charge-offs (4,291 ) (13,941 ) (4,421 ) (6,718 ) (3,439 ) (3,811 ) (1,312 ) (1,817 ) Provision for credit losses 117,663 72,026 7,200 6,750 (31,559 ) (30,932 ) (7,454 ) (7,992 ) Balance at end of period $ 316,409 $ 374,494 $ 377,273 $ 377,305 $ 342,307 $ 307,564 $ 298,798 $ 288,989 Allowance for loan losses $ 238,737 $ 306,196 $ 308,847 $ 295,824 $ 268,077 $ 248,753 $ 237,722 $ 217,380 Reserve for losses on unfunded loan commitments 77,672 68,298 68,426 81,481 74,230 58,811 61,076 71,609 Total allowance for credit losses $ 316,409 $ 374,494 $ 377,273 $ 377,305 $ 342,307 $ 307,564 $ 298,798 $ 288,989 Selected Ratios: Net interest margin – FTE (2) 3.96 % 3.74 % 3.69 % 3.88 % 3.86 % 3.95 % 4.16 % 4.41 % Efficiency ratio 43.35 42.07 41.77 38.61 39.57 38.43 40.14 37.06 Net charge-offs to average non-purchased loans (2) (3) 0.08 0.05 0.09 0.14 0.08 0.09 0.04 0.05 Net charge-offs to average total loans (2) 0.10 0.29 0.09 0.14 0.07 0.08 0.03 0.04 Nonperforming loans to total loans (4) 0.16 0.18 0.15 0.25 0.25 0.22 0.20 0.19 Nonperforming assets to total assets (4) 0.19 0.19 0.17 0.21 0.19 0.18 0.17 0.15 Allowance for loan losses to total loans (5) 1.31 1.59 1.60 1.54 1.43 1.36 1.30 1.19 Loans past due 30 days or more, including
past due non-accrual loans, to total loans (4)0.18 0.13 0.13 0.16 0.13 0.10 0.13 0.15 (1) Current Expected Credit Loss.
(2) Ratios for interim periods annualized based on actual days.
(3) Excludes purchased loans and net charge-offs related to such loans.
(4) Excludes purchased loans, except for their inclusion in total assets.
(5) Excludes reserve for losses on unfunded loan commitments.Bank OZK
Average Consolidated Balance Sheets and Net Interest Analysis – FTE
UnauditedThree Months Ended December 31, Year Ended December 31, 2021 2020 2021 2020 Average
BalanceIncome/
ExpenseYield/
RateAverage
BalanceIncome/
ExpenseYield/
RateAverage
BalanceIncome/
ExpenseYield/
RateAverage
BalanceIncome/
ExpenseYield/
Rate(Dollars in thousands) ASSETS Interest earning assets: Interest earning deposits and federal
funds sold$ 2,106,395 $ 953 0.18 % $ 1,762,810 $ 428 0.10 % $ 1,871,388 $ 2,510 0.13 % $ 1,535,977 $ 5,665 0.37 % Investment securities: Taxable 3,375,895 9,448 1.11 2,036,253 9,066 1.77 3,207,485 36,234 1.13 1,993,667 40,547 2.03 Tax-exempt – FTE 593,242 3,632 2.43 1,485,224 6,034 1.62 864,432 17,378 2.01 1,080,459 24,561 2.27 Non-purchased loans – FTE 17,449,281 256,267 5.83 18,378,050 243,330 5.27 17,683,033 973,755 5.51 17,797,684 945,222 5.31 Purchased loans 551,917 11,190 8.04 881,372 16,069 7.25 662,434 46,174 6.97 1,069,250 70,812 6.62 Total earning assets – FTE 24,076,730 281,490 4.64 24,543,709 274,927 4.46 24,288,772 1,076,051 4.43 23,477,037 1,086,807 4.63 Non-interest earning assets 2,370,349 2,258,105 2,335,412 2,291,135 Total assets $ 26,447,079 $ 26,801,814 $ 26,624,184 $ 25,768,172 LIABILITIES AND STOCKHOLDERS’ EQUITY Interest bearing liabilities: Deposits: Savings and interest bearing
transaction$ 9,178,225 $ 2,641 0.11 % $ 7,669,913 $ 4,483 0.23 % $ 8,788,200 $ 12,481 0.14 % $ 7,724,528 $ 37,428 0.48 % Time deposits of $100 or more 4,358,217 4,638 0.42 6,314,394 17,144 1.08 5,218,981 35,375 0.68 5,524,751 83,956 1.52 Other time deposits 1,898,687 2,235 0.47 3,294,323 8,980 1.08 2,315,263 16,566 0.72 3,511,220 50,429 1.44 Total interest bearing deposits 15,435,129 9,514 0.24 17,278,630 30,607 0.70 16,322,444 64,422 0.39 16,760,499 171,813 1.03 Repurchase agreements with customers 7,558 3 0.16 8,239 6 0.29 7,027 17 0.24 7,825 23 0.29 Other borrowings (1) 750,226 1,017 0.54 750,961 1,011 0.54 750,276 4,012 0.53 721,350 3,179 0.44 Subordinated notes 346,025 2,631 3.02 223,996 3,207 5.70 212,600 9,386 4.42 223,850 12,758 5.70 Subordinated debentures (1) 120,956 935 3.07 120,400 963 3.18 120,751 3,750 3.11 120,190 4,384 3.65 Total interest bearing liabilities 16,659,894 14,100 0.34 18,382,226 35,794 0.77 17,413,098 81,587 0.47 17,833,714 192,157 1.08 Non-interest bearing liabilities: Non-interest bearing deposits 4,651,656 3,907,955 4,380,850 3,521,066 Other non-interest bearing liabilities 376,706 289,298 321,583 261,169 Total liabilities 21,688,256 22,579,479 22,115,531 21,615,949 Total common stockholders’ equity before
noncontrolling interest4,755,706 4,219,249 4,505,544 4,149,123 Noncontrolling interest 3,117 3,086 3,109 3,100 Total liabilities and stockholders’
equity$ 26,447,079 $ 26,801,814 $ 26,624,184 $ 25,768,172 Net interest income – FTE $ 267,390 $ 239,133 $ 994,464 $ 894,650 Net interest margin – FTE 4.41 % 3.88 % 4.09 % 3.81 % Core spread (2) 5.59 % 4.57 % 5.12 % 4.28 % (1) The interest expense and the rates for “other borrowings” and for “subordinated debentures” were affected by capitalized interest. Capitalized interest included in other borrowings for the fourth quarter and for the full year of 2021 was not material compared to $0.03 million for the fourth quarter and $0.68 million for the full year of 2020. In the absence of this interest capitalization, the rates on other borrowings would have been 0.55% for the fourth quarter and 0.53% for the full year of 2020. Capitalized interest included in subordinated debentures totaled $0.01 million for the fourth quarter and $0.18 million for the full year of 2020 (none in the fourth quarter or full year of 2021). In the absence of this interest capitalization, the rates on subordinated debentures would have been 3.20% for the fourth quarter and 3.80% for the full year of 2020.
(2) Core spread is the difference between the yield on the Bank’s non-purchased loans-FTE and the rate on its interest bearing deposits.
Bank OZK
Reconciliation of Non-GAAP Financial MeasuresCalculation of Average Common Stockholders’ Equity,
Average Tangible Common Stockholders’ Equity
and the Annualized Returns on Average Common Stockholders’ Equity and
Average Tangible Common Stockholders’ Equity
UnauditedThree Months Ended December 31, September 30, Year Ended December 31, 2021 2020 2021 2021 2020 (Dollars in thousands) Net income available to common
stockholders$ 149,760 $ 120,513 $ 130,290 $ 579,001 $ 291,898 Average stockholders’ equity before
noncontrolling interest$ 4,755,706 $ 4,219,249 $ 4,530,995 $ 4,505,544 $ 4,149,123 Less average preferred stock (213,693 ) — — (53,862 ) — Total average common stockholders’
equity4,542,013 4,219,249 4,530,995 4,451,682 4,149,123 Less average intangible assets: Goodwill (660,789 ) (660,789 ) (660,789 ) (660,789 ) (660,789 ) Core deposit and other intangible assets,
net of accumulated amortization(9,032 ) (15,578 ) (10,617 ) (11,398 ) (18,741 ) Total average intangibles (669,821 ) (676,367 ) (671,406 ) (672,187 ) (679,530 ) Average tangible common stockholders’
equity$ 3,872,192 $ 3,542,882 $ 3,859,589 $ 3,779,495 $ 3,469,593 Return on average common stockholders’
equity (1)13.08 % 11.36 % 11.41 % 13.01 % 7.04 % Return on average tangible common
stockholders’ equity (1)15.34 % 13.53 % 13.39 % 15.32 % 8.41 % (1) Ratios for interim periods annualized based on actual days.
Calculation of Total Common Stockholders’ Equity,
Total Tangible Common Stockholders’ Equity
and Tangible Book Value per Common Share
UnauditedDecember 31, September 30, 2021 2020 2021 (In thousands, except per share amounts) Total stockholders’ equity before noncontrolling interest $ 4,836,243 $ 4,272,271 $ 4,553,240 Less preferred stock (338,980 ) — — Total common stockholders’ equity 4,497,263 4,272,271 4,553,240 Less intangible assets: Goodwill (660,789 ) (660,789 ) (660,789 ) Core deposit and other intangible assets, net of
accumulated amortization(8,274 ) (14,669 ) (9,791 ) Total intangibles (669,063 ) (675,458 ) (670,580 ) Total tangible common stockholders’ equity $ 3,828,200 $ 3,596,813 $ 3,882,660 Shares of common stock outstanding 125,444 129,350 128,818 Book value per common share $ 35.85 $ 33.03 $ 35.35 Tangible book value per common share $ 30.52 $ 27.81 $ 30.14 Calculation of Total Common Stockholders’ Equity,
Total Tangible Common Stockholders’ Equity
and the Ratio of Total Tangible Common Stockholders’ Equity
to Total Tangible Assets
UnauditedDecember 31, 2021 2020 (Dollars in thousands) Total stockholders’ equity before noncontrolling interest $ 4,836,243 $ 4,272,271 Less preferred stock (338,980 ) — Total common stockholders’ equity 4,497,263 4,272,271 Less intangible assets: Goodwill (660,789 ) (660,789 ) Core deposit and other intangible assets, net of
accumulated amortization(8,274 ) (14,669 ) Total intangibles (669,063 ) (675,458 ) Total tangible common stockholders’ equity $ 3,828,200 $ 3,596,813 Total assets $ 26,530,430 $ 27,162,596 Less intangible assets: Goodwill (660,789 ) (660,789 ) Core deposit and other intangible assets, net of
accumulated amortization(8,274 ) (14,669 ) Total intangibles (669,063 ) (675,458 ) Total tangible assets $ 25,861,367 $ 26,487,138 Ratio of total common stockholders’ equity to total assets 16.95 % 15.73 % Ratio of total tangible common stockholders’ equity to total
tangible assets14.80 % 13.58 % Calculation of Pre-Tax Pre-Provision Net Revenue
UnauditedThree Months Ended December 31,
2021September 30,
2021June 30,
2021March 31,
2021December 31,
2020(Dollars in thousands) Income before taxes $ 193,962 $ 170,998 $ 195,709 $ 192,253 $ 156,117 Provision for credit losses (7,992 ) (7,454 ) (30,932 ) (31,559 ) 6,750 Pre-tax pre-provision net revenue $ 185,970 $ 163,544 $ 164,777 $ 160,694 $ 162,867 Three Months Ended Year Ended December 31, September 30,
2020June 30,
2020March 31,
20202021 2020 (Dollars in thousands) Income before taxes $ 138,492 $ 65,205 $ 16,367 $ 752,921 $ 376,180 Provision for credit losses 7,200 72,026 117,663 (77,938 ) 203,639 Pre-tax pre-provision net revenue $ 145,692 $ 137,231 $ 134,030 $ 674,983 $ 579,819 
