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Bank OZK Announces Third Quarter 2022 Earnings
Source: Nasdaq GlobeNewswire / 20 Oct 2022 15:01:06 America/Chicago
LITTLE ROCK, Ark., Oct. 20, 2022 (GLOBE NEWSWIRE) -- Bank OZK (the “Bank”) (Nasdaq: OZK) today announced that net income available to common stockholders for the third quarter of 2022 was $128.3 million, a 1.5% decrease from $130.3 million for the third quarter of 2021. Diluted earnings per common share for the third quarter of 2022 were $1.08, an 8.0% increase from $1.00 for the third quarter of 2021.
For the nine months ended September 30, 2022, net income available to common stockholders was $388.7 million, a 9.4% decrease from $429.2 million for the first nine months of 2021. Diluted earnings per common share for the first nine months of 2022 were $3.20, a 3.0% decrease from $3.30 for the first nine months of 2021.
The Bank’s provision for credit losses was $39.8 million for the third quarter and $51.0 million for the first nine months of 2022 compared to negative provisions for credit losses of $7.5 million for the third quarter and $69.9 million for the first nine months of 2021. The growth in both funded and unfunded loan balances during the quarter contributed to the higher provision for credit losses, which impacted net income. The Bank’s total allowance for credit losses (“ACL”) was $335.6 million at September 30, 2022. The calculations of the Bank’s provision expense for the third quarter and first nine months of 2022 and its total ACL at September 30, 2022 were based on a number of key estimates, assumptions and economic forecasts and included certain qualitative adjustments to capture items not fully reflected in the modeled results.
Pre-tax pre-provision net revenue (“PPNR”) was $208.1 million for the third quarter of 2022, a 27.2% increase from $163.5 million for the third quarter of 2021. For the nine months ended September 30, 2022, PPNR was $564.0 million, a 15.3% increase from $489.0 million for the first nine months of 2021. The calculation of PPNR and the reconciliation to generally accepted accounting principles (“GAAP”) are included in the schedules accompanying this release.
The Bank’s annualized returns on average assets, average common stockholders’ equity and average tangible common stockholders’ equity for the third quarter of 2022 were 1.97%, 11.85% and 14.02%, respectively, compared to 1.98%, 11.41% and 13.39%, respectively, for the third quarter of 2021. The Bank’s annualized returns on average assets, average common stockholder’s equity and average tangible common stockholders’ equity for the first nine months of 2022 were 1.99%, 11.97%, and 14.14%, respectively, compared to 2.15%, 12.98%, and 15.31%, respectively, for the first nine months of 2021. 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 strong results for the third quarter of 2022. Our results were highlighted by our fourth consecutive quarter of record RESG loan originations and solid growth in RESG’s funded loans, along with meaningful contributions to growth from our Community Banking and other lending teams. This reflects our dual focus on both organic loan growth and increased portfolio diversification. Our strong capital and liquidity, disciplined credit culture and outstanding team have us well positioned for the current environment and the longer term.”
KEY BALANCE SHEET METRICS
Total loans were $19.51 billion at September 30, 2022, a 6.6% increase from $18.31 billion at September 30, 2021. Non-purchased loans were $19.10 billion at September 30, 2022, a 7.9% increase from $17.71 billion at September 30, 2021. Purchased loans, which consist of loans acquired in previous acquisitions, were $0.41 billion at September 30, 2022, a 31.4% decrease from $0.60 billion at September 30, 2021.
Deposits were $20.40 billion at September 30, 2022, a 1.5% increase from $20.10 billion at September 30, 2021. Total assets were $26.23 billion at September 30, 2022, a 0.3% increase from $26.14 billion at September 30, 2021.
Common stockholders’ equity was $4.20 billion at September 30, 2022, a 7.7% decrease from $4.55 billion at September 30, 2021. Tangible common stockholders’ equity was $3.54 billion at September 30, 2022, an 8.9% decrease from $3.88 billion at September 30, 2021. Book value per common share was $35.67 at September 30, 2022, a 0.9% increase from $35.35 at September 30, 2021. Tangible book value per common share was $30.02 at September 30, 2022, a 0.4% decrease from $30.14 at September 30, 2021. 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 16.01% at September 30, 2022, compared to 17.42% at September 30, 2021. Its ratio of total tangible common stockholders’ equity to total tangible assets was 13.83% at September 30, 2022, compared to 15.24% at September 30, 2021. 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.
STOCK REPURCHASES
During the quarter just ended, the Bank repurchased approximately 1.23 million shares of its common stock at a weighted average price of $38.96, for a total of $47.7 million. During the first nine months of 2022, the Bank repurchased approximately 7.80 million shares of its common stock at a weighted average price of $41.90, for a total of $326.7 million. Our current stock repurchase program expires November 4, 2022. In evaluating any plans for stock repurchases after expiration of the current program, the Bank will consider a variety of factors including its capital position, expected growth, alternative uses of capital, liquidity, financial performance, stock price, current and expected macro economic environment, regulatory requirements and other factors.
MANAGEMENT’S COMMENTS, CONFERENCE CALL, TRANSCRIPT AND FILINGS
In connection with this release, the Bank released management’s comments on its quarterly results, which are available at http://ir.ozk.com. This release should be read in conjunction with management’s comments on the quarterly results.
Management will conduct a conference call to take questions on these quarterly results and management’s comments at 10:00 a.m. CT (11:00 a.m. ET) on October 21, 2022. 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, average tangible common stockholders’ equity, tangible book value per common share, common stockholders’ equity, 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 presentation 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 identifying satisfactory sites, 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 transition from the London Interbank Offered Rate (“LIBOR”) as a reference rate; 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; recently enacted and potential laws and regulatory requirements, including those actions in response to the coronavirus (“COVID-19”) pandemic, or changes to existing laws and regulatory requirements, including changes affecting oversight of the financial services industry 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; 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, our operational or security systems or infrastructure, or those of third parties with whom we do 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 ongoing global 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 the financial markets; the potential impact of continuing inflationary pressures; the potential impact of supply chain disruptions; national, international or political instability or military conflict, including the ongoing war in Ukraine; the competition and costs of recruiting and retaining human talent; impairment of our 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 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, 2021 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 with over 240 offices in eight states including Arkansas, Georgia, Florida, North Carolina, Texas, New York, California and Mississippi and had $26.23 billion in total assets as of September 30, 2022. Bank OZK can be found at www.ozk.com and on Facebook, Twitter and LinkedIn or contacted at (501) 978-2265 or P.O. Box 8811, Little Rock, Arkansas 72231-8811.
Bank OZK
Consolidated Balance Sheets
UnauditedSeptember 30, December 31, 2022 2021 (Dollars in thousands, except per share amounts) ASSETS Cash and cash equivalents $ 895,824 $ 2,053,829 Investment securities ― available for sale (“AFS”) 3,528,077 3,916,733 Investment securities ― trading 2,481 14,957 Federal Home Loan Bank of Dallas and other bankers’ bank stocks 31,841 40,788 Non-purchased loans 19,103,546 17,791,610 Purchased loans 410,166 516,215 Allowance for loan losses (200,098 ) (217,380 ) Net loans 19,313,614 18,090,445 Premises and equipment, net 684,930 695,857 Foreclosed assets 6,559 5,744 Accrued interest receivable 97,564 83,025 Bank owned life insurance (“BOLI”) 784,926 774,822 Goodwill and other intangible assets, net 664,732 669,063 Other, net 221,571 185,167 Total assets $ 26,232,119 $ 26,530,430 LIABILITIES AND STOCKHOLDERS’ EQUITY Deposits: Demand non-interest bearing $ 4,824,209 $ 4,983,788 Savings and interest bearing transaction 9,763,638 9,245,727 Time 5,814,029 5,979,619 Total deposits 20,401,876 20,209,134 Other borrowings 456,466 756,321 Subordinated notes 346,741 346,133 Subordinated debentures 121,450 121,033 Reserve for losses on unfunded loan commitments 135,537 71,609 Accrued interest payable and other liabilities 227,505 186,840 Total liabilities 21,689,575 21,691,070 Commitments and contingencies Stockholders’ equity: Preferred stock; $0.01 par value; 100,000,000 shares authorized;
14,000,000 issued and outstanding at September 30, 2022
and December 31, 2021338,980 338,980 Common stock; $0.01 par value; 300,000,000 shares authorized;
117,761,605 and 125,443,748 shares issued and outstanding at
September 30, 2022 and December 31, 2021, respectively1,178 1,254 Additional paid-in capital 1,773,562 2,093,702 Retained earnings 2,653,377 2,378,466 Accumulated other comprehensive (loss) income (227,673 ) 23,841 Total stockholders’ equity before noncontrolling interest 4,539,424 4,836,243 Noncontrolling interest 3,120 3,117 Total stockholders’ equity 4,542,544 4,839,360 Total liabilities and stockholders’ equity $ 26,232,119 $ 26,530,430 Bank OZK
Consolidated Statements of Income
UnauditedThree Months Ended
September 30,Nine Months Ended
September 30,2022 2021 2022 2021 (Dollars in thousands, except per share amounts) Interest income: Non-purchased loans $ 295,054 $ 238,258 $ 791,313 $ 716,639 Purchased loans 7,148 11,350 24,300 34,985 Investment securities: Taxable 10,269 9,236 31,246 26,786 Tax-exempt 7,126 3,296 14,132 10,860 Deposits with banks and federal funds sold 3,690 523 6,155 1,556 Total interest income 323,287 262,663 867,146 790,826 Interest expense: Deposits 21,997 12,326 41,343 54,908 Other borrowings 2,460 1,017 4,500 3,010 Subordinated notes 2,631 429 7,808 6,755 Subordinated debentures 1,582 934 3,741 2,814 Total interest expense 28,670 14,706 57,392 67,487 Net interest income 294,617 247,957 809,754 723,339 Provision for credit losses 39,771 (7,454 ) 50,986 (69,946 ) Net interest income after provision for credit losses 254,846 255,411 758,768 793,285 Non-interest income: Service charges on deposit accounts: NSF/Overdraft fees 4,808 4,080 13,257 10,647 All other service charges 7,089 7,097 20,963 20,507 Trust income 2,007 2,247 6,012 6,365 BOLI income: Increase in cash surrender value 4,940 4,940 14,579 14,739 Death benefits 510 — 807 1,409 Loan service, maintenance and other fees 3,418 3,307 10,039 10,811 Gains on sales of other assets 3,182 463 10,957 8,632 Net gains on investment securities 321 — 762 — Other 2,888 3,850 9,583 12,733 Total non-interest income 29,163 25,984 86,959 85,843 Non-interest expense: Salaries and employee benefits 57,367 53,769 166,427 159,533 Net occupancy and equipment 18,244 17,161 52,474 49,797 Other operating expenses 40,080 39,467 113,807 110,840 Total non-interest expense 115,691 110,397 332,708 320,170 Income before taxes 168,318 170,998 513,019 558,958 Provision for income taxes 35,969 40,713 111,754 129,691 Net income 132,349 130,285 401,265 429,267 Earnings attributable to noncontrolling interest — 5 (3 ) (27 ) Preferred stock dividends 4,047 — 12,574 — Net income available to common stockholders $ 128,302 $ 130,290 $ 388,688 $ 429,240 Basic earnings per common share $ 1.08 $ 1.01 $ 3.21 $ 3.31 Diluted earnings per common share $ 1.08 $ 1.00 $ 3.20 $ 3.30
Bank OZK
Consolidated Statements of Stockholders’ Equity
UnauditedPreferred
StockCommon
StockAdditional
Paid-In
CapitalRetained
EarningsAccumulated
Other
Comprehensive
(Loss) IncomeNon-
Controlling
InterestTotal (Dollars in thousands, except per share amounts) Three months ended September 30, 2022: Balances – June 30, 2022 $ 338,980 $ 1,190 $ 1,817,650 $ 2,563,130 $ (114,168 ) $ 3,120 $ 4,609,902 Net income — — — 132,349 — — 132,349 Earnings attributable to noncontrolling
interest— — — — — — — Total other comprehensive loss — — — — (113,505 ) — (113,505 ) Preferred stock dividends, $0.28906 per
share— — — (4,047 ) — — (4,047 ) Common stock dividends, $0.32 per
share— — — (38,055 ) — — (38,055 ) Issuance of 5,414 shares of common
stock for exercise of stock options— — 172 — — — 172 Repurchase and cancellation of 1,225,688
shares of common stock under share
repurchase program— (12 ) (47,735 ) — — — (47,747 ) Stock-based compensation expense — — 3,475 — — — 3,475 Forfeitures of 14,142 shares of unvested
restricted common stock— — — — — — — Balances – September 30, 2022 $ 338,980 $ 1,178 $ 1,773,562 $ 2,653,377 $ (227,673 ) $ 3,120 $ 4,542,544 Nine months ended September 30, 2022: Balances – December 31, 2021 $ 338,980 $ 1,254 $ 2,093,702 $ 2,378,466 $ 23,841 $ 3,117 $ 4,839,360 Net income — — — 401,265 — — 401,265 Earnings attributable to noncontrolling
interest— — — (3 ) — 3 — Total other comprehensive loss — — — — (251,514 ) — (251,514 ) Preferred stock dividends, $0.89812 per
share— — — (12,574 ) — — (12,574 ) Common stock dividends, $0.93 per
share— — — (113,777 ) — — (113,777 ) Issuance of 74,521 shares of common
stock for exercise of stock options— 1 2,251 — — — 2,252 Issuance of 220,822 shares of unvested
restricted common stock— 2 (2 ) — — — — Repurchase and cancellation of 7,798,520
shares of common stock under share
repurchase program— (77 ) (326,667 ) — — — (326,744 ) Repurchase and cancellation of 112,974
shares of common stock withheld for
tax pursuant to restricted stock vesting— (1 ) (5,398 ) — — — (5,399 ) Stock-based compensation expense — — 9,675 — — — 9,675 Forfeitures of 65,992 shares of unvested
restricted common stock— (1 ) 1 — — — — Balances – September 30, 2022 $ 338,980 $ 1,178 $ 1,773,562 $ 2,653,377 $ (227,673 ) $ 3,120 $ 4,542,544 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 September 30, 2021: Balances – June 30, 2021 $ 1,297 $ 2,277,138 $ 2,173,114 $ 50,127 $ 3,117 $ 4,504,793 Net income — — 130,285 — — 130,285 Earnings attributable to noncontrolling
interest— — 5 — (5 ) — Total other comprehensive loss — — — (9,421 ) — (9,421 ) Common stock dividends, $0.285 per share — — (37,170 ) — — (37,170 ) Issuance of 33,850 shares of common
stock for exercise of stock options1 1,085 — — — 1,086 Repurchase and cancellation of 888,567
shares of common stock under share
repurchase program(9 ) (36,990 ) — — — (36,999 ) Stock-based compensation expense — 3,778 — — — 3,778 Forfeitures of 47,604 shares of unvested
restricted common stock(1 ) 1 — — — — Balances – September 30, 2021 $ 1,288 $ 2,245,012 $ 2,266,234 $ 40,706 $ 3,112 $ 4,556,352 Nine months ended September 30, 2021: Balances – December 31, 2020 $ 1,294 $ 2,265,850 $ 1,946,875 $ 58,252 $ 3,085 $ 4,275,356 Net income — — 429,267 — — 429,267 Earnings attributable to noncontrolling
interest— — (27 ) — 27 — Total other comprehensive income — — — (17,546 ) — (17,546 ) Common stock dividends, $0.8425 per share — — (109,881 ) — — (109,881 ) Issuance of 176,250 shares of common
stock for exercise of stock options2 6,092 — — — 6,094 Issuance of 332,831 shares of unvested
restricted common stock3 (3 ) — — — — Repurchase and cancellation of 888,567
shares of common stock under share
repurchase program(9 ) (36,990 ) — — — (36,999 ) 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 — 12,038 — — — 12,038 Forfeitures of 97,250 shares of unvested
restricted common stock(1 ) 1 — — — — Balances – September 30, 2021 $ 1,288 $ 2,245,012 $ 2,266,234 $ 40,706 $ 3,112 $ 4,556,352 Bank OZK
Summary of Non-Interest Expense
UnauditedThree Months Ended
September 30,Nine Months Ended
September 30,2022 2021 2022 2021 (Dollars in thousands) Salaries and employee benefits $ 57,367 $ 53,769 $ 166,427 $ 159,533 Net occupancy and equipment 18,244 17,161 52,474 49,797 Other operating expenses: Professional and outside services 8,059 7,084 23,602 21,134 Software and data processing 6,044 5,897 18,188 17,695 Advertising and public relations 3,448 719 5,810 1,621 Deposit insurance and assessments 2,650 2,655 6,900 9,060 Postage and supplies 2,035 1,530 5,240 4,718 Travel and meals 1,962 1,617 5,906 3,811 Telecommunication services 1,921 1,966 5,852 6,363 ATM expense 1,500 1,846 4,497 4,615 Loan collection and repossession expense 402 407 1,081 1,456 Writedowns of foreclosed and other assets 87 990 345 2,476 Amortization of intangibles 1,298 1,545 4,331 4,878 Amortization of CRA and tax credit investments 5,155 4,972 14,885 12,324 Other 5,519 8,239 17,170 20,689 Total non-interest expense $ 115,691 $ 110,397 $ 332,708 $ 320,170 Bank OZK
Summary of Total Loans Outstanding
UnauditedSeptember 30, 2022 December 31, 2021 (Dollars in thousands) Real estate: Residential 1-4 family $ 968,369 5.0 % $ 887,024 4.8 % Non-farm/non-residential 4,609,068 23.6 3,782,892 20.7 Construction/land development 7,367,128 37.8 8,246,674 45.0 Agricultural 231,730 1.2 247,727 1.4 Multifamily residential 1,341,639 6.9 934,845 5.1 Total real estate 14,517,934 74.5 14,099,162 77.0 Commercial and industrial 804,000 4.1 510,784 2.8 Consumer 2,427,361 12.4 2,185,429 11.9 Other 1,764,417 9.0 1,512,450 8.3 Total loans 19,513,712 100.0 % 18,307,825 100.0 % Allowance for loan losses (200,098 ) (217,380 ) Net loans $ 19,313,614 $ 18,090,445 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 September 30, 2022: Balances – June 30, 2022 $ 190,795 $ 109,143 $ 299,938 Net charge-offs (4,074 ) — (4,074 ) Provision for credit losses 13,377 26,394 39,771 Balances – September 30, 2022 $ 200,098 $ 135,537 $ 335,635 Nine months ended September 30, 2022: Balances – December 31, 2021 $ 217,380 $ 71,609 $ 288,989 Net charge-offs (4,340 ) — (4,340 ) Provision for credit losses (12,942 ) 63,928 50,986 Balances – September 30, 2022 $ 200,098 $ 135,537 $ 335,635 Three months ended September 30, 2021: Balances – June 30, 2021 $ 248,753 $ 58,811 $ 307,564 Net charge-offs (1,312 ) — (1,312 ) Provision for credit losses (9,719 ) 2,265 (7,454 ) Balances – September 30, 2021 $ 237,722 $ 61,076 $ 298,798 Nine months ended September 30, 2021: Balances – December 31, 2020 $ 295,824 $ 81,481 $ 377,305 Net charge-offs (8,561 ) — (8,561 ) Provision for credit losses (49,541 ) (20,405 ) (69,946 ) Balances – September 30, 2021 $ 237,722 $ 61,076 $ 298,798 Bank OZK
Summary of Deposits – By Account Type
UnauditedSeptember 30, 2022 December 31, 2021 (Dollars in thousands) Non-interest bearing $ 4,824,209 23.6 % $ 4,983,788 24.7 % Interest bearing: Transaction (NOW) 3,723,109 18.2 3,412,369 16.9 Savings and money market 6,040,529 29.6 5,833,358 28.9 Time deposits 5,814,029 28.6 5,979,619 29.5 Total deposits $ 20,401,876 100.0 % $ 20,209,134 100.0 % Summary of Deposits – By Customer Type
UnauditedSeptember 30, 2022 December 31, 2021 (Dollars in thousands) Non-interest bearing $ 4,824,209 23.6 % $ 4,983,788 24.7 % Interest bearing: Consumer and commercial: Consumer – non-time 4,197,997 20.6 4,334,378 21.4 Consumer – time 4,127,269 20.2 4,318,742 21.4 Commercial – non-time 2,891,061 14.2 2,634,817 13.0 Commercial – time 557,130 2.7 905,347 4.5 Public funds 2,054,727 10.1 2,094,800 10.4 Brokered 1,322,297 6.5 452,137 2.2 Reciprocal 427,186 2.1 485,125 2.4 Total deposits $ 20,401,876 100.0 % $ 20,209,134 100.0 % Bank OZK
Selected Consolidated Financial Data
UnauditedThree Months Ended
September 30,Nine Months Ended
September 30,2022 2021 % Change 2022 2021 % Change (Dollars in thousands, except per share amounts) Income statement data: Net interest income $ 294,617 $ 247,957 18.8 % $ 809,754 $ 723,339 11.9 % Provision for credit losses 39,771 (7,454 ) NM 50,986 (69,946 ) NM Non-interest income 29,163 25,984 12.2 86,959 85,843 1.3 Non-interest expense 115,691 110,397 4.8 332,708 320,170 3.9 Net income 132,349 130,285 1.6 401,265 429,267 (6.5 ) Preferred stock dividends 4,047 — NM 12,574 — NM Net income available to common stockholders 128,302 130,290 (1.5 ) 388,688 429,240 (9.4 ) Pre-tax pre-provision net revenue (1) 208,089 163,544 27.2 564,005 489,012 15.3 Common share and per common share data: Diluted earnings per common share $ 1.08 $ 1.00 8.0 % $ 3.20 $ 3.30 (3.0 )% Basic earnings per common share 1.08 1.01 6.9 3.21 3.31 (3.0 ) Common stock dividends per share 0.32 0.285 12.3 0.93 0.8425 10.4 Book value per share 35.67 35.35 0.9 35.67 35.35 0.9 Tangible book value per common share (1) 30.02 30.14 (0.4 ) 30.02 30.14 (0.4 ) Weighted-average diluted shares outstanding (thousands) 118,856 129,929 (8.5 ) 121,539 130,063 (6.6 ) End of period shares outstanding (thousands) 117,762 128,818 (8.6 ) 117,762 128,818 (8.6 ) Balance sheet data at period end: Total assets $ 26,232,119 $ 26,143,367 0.3 % $ 26,232,119 $ 26,143,367 0.3 % Total loans 19,513,712 18,305,303 6.6 19,513,712 18,305,303 6.6 Non-purchased loans 19,103,546 17,707,452 7.9 19,103,546 17,707,452 7.9 Purchased loans 410,166 597,851 (31.4 ) 410,166 597,851 (31.4 ) Allowance for loan losses 200,098 237,722 (15.8 ) 200,098 237,722 (15.8 ) Foreclosed assets 6,559 9,444 (30.5 ) 6,559 9,444 (30.5 ) Investment securities − AFS 3,528,077 3,846,496 (8.3 ) 3,528,077 3,846,496 (8.3 ) Goodwill and other intangible assets, net 664,732 670,580 (0.9 ) 664,732 670,580 (0.9 ) Deposits 20,401,876 20,102,440 1.5 20,401,876 20,102,440 1.5 Other borrowings 456,466 750,217 (39.2 ) 456,466 750,217 (39.2 ) Subordinated notes 346,741 345,927 0.2 346,741 345,927 0.2 Subordinated debentures 121,450 120,892 0.5 121,450 120,892 0.5 Unfunded balance of closed loans 20,091,101 12,385,369 62.2 20,091,101 12,385,369 62.2 Reserve for losses on unfunded loan commitments 135,537 61,076 121.9 135,537 61,076 121.9 Preferred stock 338,980 — NM 338,980 — NM Total common stockholders’ equity (1) 4,200,444 4,553,240 (7.7 ) 4,200,444 4,553,240 (7.7 ) Net unrealized (losses) gains on investment securities AFS
included in stockholders’ equity(227,673 ) 40,706 NM (227,673 ) 40,706 NM Loan (including purchased loans) to deposit ratio 95.65 % 91.06 % 5.0 95.65 % 91.06 % 5.0 Selected ratios: Return on average assets (2) 1.97 % 1.98 % 1.99 % 2.15 % Return on average common stockholders’ equity (1) (2) 11.85 11.41 11.97 12.98 Return on average tangible common stockholders’ equity (1) (2) 14.02 13.39 14.14 15.31 Average common equity to total average assets 16.61 17.38 16.60 16.57 Net interest margin – FTE (2) 5.03 4.16 4.60 3.99 Efficiency ratio 35.50 40.14 36.92 39.39 Net charge-offs to average non-purchased loans (2) (3) 0.09 0.04 0.07 0.07 Net charge-offs to average total loans (2) 0.09 0.03 0.03 0.06 Nonperforming loans to total loans (4) 0.14 0.20 0.14 0.20 Nonperforming assets to total assets (4) 0.13 0.17 0.13 0.17 Allowance for loan losses to total loans (5) 1.03 1.30 1.03 1.30 Other information: Non-accrual loans (4) $ 24,633 $ 34,920 $ 24,633 $ 34,920 Accruing loans − 90 days past due (4) — — — — Troubled and restructured non-purchased loans − accruing (4) 1,610 1,253 1,610 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 meaningfulSelected Consolidated Financial Data (continued)
UnauditedThree Months Ended September 30, 2022 June 30,
2022% Change (Dollars in thousands, except per share amounts) Income statement data: Net interest income $ 294,617 $ 265,793 10.8 % Provision for credit losses 39,771 7,025 466.1 Non-interest income 29,163 26,320 10.8 Non-interest expense 115,691 109,300 5.8 Net income 132,349 136,413 (3.0 ) Preferred stock dividends 4,047 4,047 — Net income available to common stockholders 128,302 132,358 (3.1 ) Pre-tax pre-provision net revenue (1) 208,089 182,813 13.8 Common share and per common share data: Diluted earnings per common share $ 1.08 $ 1.10 (1.8 )% Basic earnings per common share 1.08 1.10 (1.8 ) Common stock dividends per share 0.32 0.31 3.2 Book value per share 35.67 35.87 (0.6 ) Tangible book value per common share (1) 30.02 30.27 (0.8 ) Weighted-average diluted shares outstanding (thousands) 118,856 120,827 (1.6 ) End of period shares outstanding (thousands) 117,762 118,996 (1.0 ) Balance sheet data at period end: Total assets $ 26,232,119 $ 25,919,965 1.2 % Total loans 19,513,712 18,742,718 4.1 Non-purchased loans 19,103,546 18,297,638 4.4 Purchased loans 410,166 445,080 (7.8 ) Allowance for loan losses 200,098 190,795 4.9 Foreclosed assets 6,559 2,593 153.0 Investment securities − AFS 3,528,077 3,705,807 (4.8 ) Goodwill and other intangible assets, net 664,732 666,029 (0.2 ) Deposits 20,401,876 19,984,187 2.1 Other borrowings 456,466 505,221 (9.7 ) Subordinated notes 346,741 346,536 0.1 Subordinated debentures 121,450 121,310 0.1 Unfunded balance of closed loans 20,091,101 17,369,767 15.7 Reserve for losses on unfunded loan commitments 135,537 109,143 24.2 Preferred stock 338,980 338,980 — Total common stockholders’ equity (1) 4,200,444 4,267,802 (1.6 ) Net unrealized losses on investment securities AFS
included in stockholders’ equity(227,673 ) (114,168 ) 99.4 Loan (including purchased loans) to deposit ratio 95.65 % 93.79 % 2.0 Selected ratios: Return on average assets (2) 1.97 % 2.02 % Return on average common stockholders’ equity (1) (2) 11.85 12.40 Return on average tangible common stockholders’ equity (1) (2) 14.02 14.69 Average common equity to average assets 16.61 16.32 Net interest margin – FTE (2) 5.03 4.52 Efficiency ratio 35.50 37.25 Net charge-offs to average non-purchased loans (2) (3) 0.09 0.03 Net charge-offs to average total loans (2) 0.09 0.01 Nonperforming loans to total loans (4) 0.14 0.16 Nonperforming assets to total assets (4) 0.13 0.12 Allowance for loan losses to total loans (5) 1.03 1.02 Other information: Non-accrual loans (4) $ 24,633 $ 28,171 Accruing loans − 90 days past due (4) — — Troubled and restructured non-purchased loans − accruing (4) 1,610 1,033 (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
Unaudited12/31/20 3/31/21 6/30/21 9/30/21 12/31/21 03/31/22 06/30/22 09/30/22 (Dollars in thousands) Earnings Summary: Net interest income $ 237,600 $ 234,636 $ 240,746 $ 247,957 $ 266,381 $ 249,343 $ 265,793 $ 294,617 Federal tax (FTE) adjustment 1,533 1,275 1,355 1,106 1,009 1,017 1,300 2,151 Net interest income (FTE) 239,133 235,911 242,101 249,063 267,390 250,360 267,093 296,768 Provision for credit losses (6,750 ) 31,559 30,932 7,454 7,992 (4,190 ) (7,025 ) (39,771 ) Non-interest income 28,661 32,117 27,742 25,984 29,695 31,475 26,320 29,163 Non-interest expense (103,394 ) (106,059 ) (103,711 ) (110,397 ) (110,106 ) (107,715 ) (109,300 ) (115,691 ) Pretax income (FTE) 157,650 193,528 197,064 172,104 194,971 169,930 177,088 170,469 FTE adjustment (1,533 ) (1,275 ) (1,355 ) (1,106 ) (1,009 ) (1,017 ) (1,300 ) (2,151 ) Provision for income taxes (35,607 ) (43,818 ) (45,161 ) (40,713 ) (44,197 ) (36,410 ) (39,375 ) (35,969 ) Noncontrolling interest 3 (19 ) (13 ) 5 (5 ) 5 (8 ) — Preferred stock dividend — — — — — (4,480 ) (4,047 ) (4,047 ) Net income available to common stockholders $ 120,513 $ 148,416 $ 150,535 $ 130,290 $ 149,760 $ 128,028 $ 132,358 $ 128,302 Earnings per common share – diluted $ 0.93 $ 1.14 $ 1.16 $ 1.00 $ 1.17 $ 1.02 $ 1.10 $ 1.08 PPNR $ 162,867 $ 160,694 $ 164,777 $ 163,544 $ 185,970 $ 173,103 $ 182,813 $ 208,089 Non-interest Income: Service charges on deposit accounts: NSF/Overdraft fees $ 4,024 $ 3,323 $ 3,244 $ 4,080 $ 4,315 $ 4,201 $ 4,247 $ 4,808 All other service charges 5,959 6,342 7,067 7,097 7,149 6,690 7,184 7,089 Trust income 1,909 2,206 1,911 2,247 2,141 2,094 1,911 2,007 BOLI income: Increase in cash surrender value 5,034 4,881 4,919 4,940 4,901 4,793 4,846 4,940 Death benefits — 1,409 — — 618 297 — 510 Loan service, maintenance and other fees 3,797 3,551 3,953 3,307 3,148 3,018 3,603 3,418 Gains on sales of other assets 5,189 5,828 2,341 463 1,330 6,992 784 3,182 Net gains (losses) on investment securities — — — — 504 (90 ) 531 321 Other 2,749 4,577 4,307 3,850 5,589 3,480 3,214 2,888 Total non-interest income $ 28,661 $ 32,117 $ 27,742 $ 25,984 $ 29,695 $ 31,475 $ 26,320 $ 29,163 Non-interest Expense: Salaries and employee benefits $ 53,832 $ 53,645 $ 52,119 $ 53,769 $ 55,034 $ 54,648 $ 54,412 $ 57,367 Net occupancy and equipment 15,617 16,468 16,168 17,161 17,004 17,215 17,014 18,244 Other operating expenses 33,945 35,946 35,424 39,467 38,068 35,852 37,874 40,080 Total non-interest expense $ 103,394 $ 106,059 $ 103,711 $ 110,397 $ 110,106 $ 107,715 $ 109,300 $ 115,691 Balance Sheet Data: Total assets $ 27,162,596 $ 27,276,892 $ 26,605,938 $ 26,143,367 $ 26,530,430 $ 26,562,353 $ 25,919,965 $ 26,232,119 Non-purchased loans 18,401,495 17,979,435 17,611,848 17,707,452 17,791,610 18,449,723 18,297,638 19,103,546 Purchased loans 807,673 735,630 659,822 597,851 516,215 481,299 445,080 410,166 Investment securities – AFS 3,405,351 4,162,479 4,693,396 3,846,496 3,916,733 3,728,284 3,705,807 3,528,077 Deposits 21,450,356 21,296,442 20,706,777 20,102,440 20,209,134 20,329,662 19,984,187 20,401,876 Unfunded balance of closed loans 11,847,117 11,780,099 11,709,818 12,385,369 13,619,578 14,954,367 17,369,767 20,091,101 Preferred stock — — — — 338,980 338,980 338,980 338,980 Total stockholders' equity before noncontrolling interest 4,272,271 4,383,205 4,501,676 4,553,240 4,836,243 4,690,057 4,606,782 4,539,424 Bank OZK
Supplemental Quarterly Financial Data (Continued)
Unaudited12/31/20 3/31/21 6/30/21 9/30/21 12/31/21 03/31/22 06/30/2022 09/30/22 (Dollars in thousands) Allowance for Credit Losses: Balance at beginning of period $ 377,273 $ 377,305 $ 342,307 $ 307,564 $ 298,798 $ 288,989 $ 293,540 $ 299,938 Net charge-offs (6,718 ) (3,439 ) (3,811 ) (1,312 ) (1,817 ) 361 (627 ) (4,074 ) Provision for credit losses 6,750 (31,559 ) (30,932 ) (7,454 ) (7,992 ) 4,190 7,025 39,771 Balance at end of period $ 377,305 $ 342,307 $ 307,564 $ 298,798 $ 288,989 $ 293,540 $ 299,938 $ 335,635 Allowance for loan losses $ 295,824 $ 268,077 $ 248,753 $ 237,722 $ 217,380 $ 204,213 $ 190,795 $ 200,098 Reserve for losses on unfunded loan commitments 81,481 74,230 58,811 61,076 71,609 89,327 109,143 135,537 Total allowance for credit losses $ 377,305 $ 342,307 $ 307,564 $ 298,798 $ 288,989 $ 293,540 $ 299,938 $ 335,635 Selected Ratios: Net interest margin – FTE (1) 3.88 % 3.86 % 3.95 % 4.16 % 4.41 % 4.24 % 4.52 % 5.03 % Efficiency ratio 38.61 39.57 38.43 40.14 37.06 38.22 37.25 35.50 Net charge-offs to average non-purchased loans (1) (2) 0.14 0.08 0.09 0.04 0.05 0.08 0.03 0.09 Net charge-offs to average total loans (1) 0.14 0.07 0.08 0.03 0.04 (0.01 ) 0.01 0.09 Nonperforming loans to total loans (3) 0.25 0.25 0.22 0.20 0.19 0.21 0.16 0.14 Nonperforming assets to total assets (3) 0.21 0.19 0.18 0.17 0.15 0.16 0.12 0.13 Allowance for loan losses to total loans (4) 1.54 1.43 1.36 1.30 1.19 1.08 1.02 1.03 Loans past due 30 days or more, including
past due non-accrual loans, to total loans (3)0.16 0.13 0.10 0.13 0.15 0.14 0.11 0.11 (1) Ratios for interim periods annualized based on actual days.
(2) Excludes purchased loans and net charge-offs related to such loans.
(3) Excludes purchased loans, except for their inclusion in total assets.
(4) Excludes reserve for losses on unfunded loan commitments.
Bank OZK
Average Consolidated Balance Sheets and Net Interest Analysis – FTE
UnauditedThree Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 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$ 699,489 $ 3,690 2.09 % $ 1,287,890 $ 523 0.16 % $ 1,023,707 $ 6,155 0.80 % $ 1,792,191 $ 1,556 0.12 % Investment securities: Taxable 2,809,479 10,269 1.45 3,509,465 9,236 1.04 3,080,645 31,246 1.36 3,150,732 26,786 1.14 Tax-exempt – FTE 907,955 9,020 3.94 740,809 4,172 2.23 706,628 17,889 3.38 955,822 13,747 1.92 Non-purchased loans – FTE 18,544,681 295,311 6.32 17,559,654 238,488 5.39 18,413,106 792,025 5.75 17,761,807 717,488 5.40 Purchased loans 429,312 7,148 6.61 627,436 11,350 7.18 464,205 24,300 7.00 699,678 34,985 6.69 Total earning assets – FTE 23,390,916 325,438 5.52 23,725,254 263,769 4.41 23,688,291 871,615 4.92 24,360,230 794,562 4.36 Non-interest earning assets 2,474,862 2,348,740 2,460,424 2,324,716 Total assets $ 25,865,778 $ 26,073,994 $ 26,148,715 $ 26,684,946 LIABILITIES AND STOCKHOLDERS’ EQUITY Interest bearing liabilities: Deposits: Savings and interest bearing transaction $ 9,614,806 $ 13,639 0.56 % $ 8,891,042 $ 2,885 0.13 % $ 9,611,716 $ 21,801 0.30 % $ 8,656,762 $ 9,840 0.15 % Time deposits 5,232,727 8,358 0.63 6,920,513 9,441 0.54 5,464,267 19,542 0.48 7,964,704 45,068 0.76 Total interest bearing deposits 14,847,533 21,997 0.59 15,811,555 12,326 0.31 15,075,983 41,343 0.37 16,621,466 54,908 0.44 Other borrowings 517,161 2,460 1.89 757,786 1,017 0.53 647,083 4,500 0.93 757,141 3,010 0.53 Subordinated notes 346,642 2,631 3.01 56,468 429 3.01 346,433 7,808 3.01 167,636 6,755 5.39 Subordinated debentures 121,382 1,582 5.17 120,822 934 3.07 121,239 3,741 4.13 120,681 2,814 3.12 Total interest bearing liabilities 15,832,718 28,670 0.72 16,746,631 14,706 0.35 16,190,738 57,392 0.47 17,666,924 67,487 0.51 Non-interest bearing liabilities: Non-interest bearing deposits 4,998,392 4,523,521 4,915,023 4,289,589 Other non-interest bearing liabilities 395,671 269,733 359,327 304,086 Total liabilities 21,226,781 21,539,885 21,465,088 22,260,599 Total stockholders’ equity before
noncontrolling interest4,635,887 4,530,995 4,680,513 4,421,240 Noncontrolling interest 3,110 3,114 3,114 3,107 Total liabilities and stockholders’ equity $ 25,865,778 $ 26,073,994 $ 26,148,715 $ 26,684,946 Net interest income – FTE $ 296,768 $ 249,063 $ 814,223 $ 727,075 Net interest margin – FTE 5.03 % 4.16 % 4.60 % 3.99 % Core spread (1) 5.73 % 5.08 % 5.38 % 4.96 % (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 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 Nine Months Ended September 30,
2022September 30,
2021June 30,
2022September 30,
2022September 30,
2021(Dollars in thousands) Net income available to common
stockholders$ 128,302 $ 130,290 $ 132,358 $ 388,688 $ 429,240 Average stockholders’ equity before
noncontrolling interest$ 4,635,887 $ 4,530,995 $ 4,619,033 $ 4,680,513 $ 4,421,240 Less average preferred stock (338,980 ) — (338,980 ) (338,980 ) — Total average common stockholders’
equity4,296,907 4,530,995 4,280,053 4,341,533 4,421,240 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(4,747 ) (10,617 ) (6,084 ) (6,124 ) (12,195 ) Total average intangibles (665,536 ) (671,406 ) (666,873 ) (666,913 ) (672,984 ) Average tangible common
stockholders’ equity$ 3,631,371 $ 3,859,589 $ 3,613,180 $ 3,674,620 $ 3,748,256 Return on average common
stockholders’ equity (1)11.85 % 11.41 % 12.40 % 11.97 % 12.98 % Return on average tangible common
stockholders’ equity (1)14.02 % 13.39 % 14.69 % 14.14 % 15.31 % (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
UnauditedSeptember 30, June 30, 2022 2021 2022 (In thousands, except per share amounts) Total stockholders’ equity before noncontrolling interest $ 4,539,424 $ 4,553,240 $ 4,606,782 Less preferred stock (338,980 ) — (338,980 ) Total common stockholders' equity 4,200,444 4,553,240 4,267,802 Less intangible assets: Goodwill (660,789 ) (660,789 ) (660,789 ) Core deposit and other intangible assets, net of
accumulated amortization(3,943 ) (9,791 ) (5,240 ) Total intangibles (664,732 ) (670,580 ) (666,029 ) Total tangible common stockholders’ equity $ 3,535,712 $ 3,882,660 $ 3,601,773 Shares of common stock outstanding 117,762 128,818 118,996 Book value per common share $ 35.67 $ 35.35 $ 35.87 Tangible book value per common share $ 30.02 $ 30.14 $ 30.27 Calculation of Total Common Stockholders’ Equity,
Total Tangible Common Stockholders’ Equity
and the Ratio of Total Tangible Common Stockholders’ Equity
to Total Tangible Assets
UnauditedSeptember 30, 2022 2021 (Dollars in thousands) Total stockholders’ equity before noncontrolling interest $ 4,539,424 $ 4,553,240 Less preferred stock (338,980 ) — Total common stockholders’ equity 4,200,444 4,553,240 Less intangible assets: Goodwill (660,789 ) (660,789 ) Core deposit and other intangible assets, net of
accumulated amortization(3,943 ) (9,791 ) Total intangibles (664,732 ) (670,580 ) Total tangible common stockholders’ equity $ 3,535,712 $ 3,882,660 Total assets $ 26,232,119 $ 26,143,367 Less intangible assets: Goodwill (660,789 ) (660,789 ) Core deposit and other intangible assets, net of
accumulated amortization(3,943 ) (9,791 ) Total intangibles (664,732 ) (670,580 ) Total tangible assets $ 25,567,387 $ 25,472,787 Ratio of total common stockholders’ equity to total assets 16.01 % 17.42 % Ratio of total tangible common stockholders’ equity to total
tangible assets13.83 % 15.24 % Calculation of Pre-Tax Pre-Provision Net Revenue
UnauditedThree Months Ended Nine Months Ended September 30,
2022September 30,
2021June 30,
2022September 30,
2022September 30,
2021(Dollars in thousands) Income before taxes $ 168,318 $ 170,998 $ 175,788 $ 513,019 $ 558,958 Provision for credit losses 39,771 (7,454 ) 7,025 50,986 (69,946 ) Pre-tax pre-provision net revenue $ 208,089 $ 163,544 $ 182,813 $ 564,005 $ 489,012 Investor Contact: Jay Staley (501) 906-7842 Media Contact: Michelle Rossow (501) 906-3922