LITTLE ROCK, Ark., July 17, 2024 (GLOBE NEWSWIRE) -- Bank OZK (the "Bank") (NASDAQ:OZK) today announced that net income available to common stockholders for the second quarter of 2024 was a record $173.5 million, a 3.3% increase from $167.9 million for the second quarter of 2023. For the first six months of 2024, net income available to common stockholders was $345.0 million, a 3.4% increase from $333.8 million for the first six months of 2023. Diluted earnings per common share for the second quarter of 2024 were a record $1.52, a 3.4% increase from $1.47 for the second quarter of 2023. For the first six months of 2024, diluted earnings per common share were $3.03, a 5.2% increase from $2.88 for the first six months of 2023. Pre-tax pre-provision net revenue ("PPNR") was a record $279.3 million for the second quarter of 2024, a 7.7% increase from $259.5 million for the second quarter of 2023. For the first six months of 2024, PPNR was $552.0 million, a 9.1% increase from the $505.9 million for the first six months of 2023. The calculation of PPNR and the reconciliation to generally accepted accounting principles ("GAAP") are included in the schedules accompanying this release. Provision for credit losses was $49.0 million for the second quarter of 2024 compared to $41.8 million for the second quarter of 2023, while our net charge-offs were only $11.8 million and $8.7 million, respectively, for those quarters. For the first six months of 2024, provision for credit losses was $91.9 million compared to $77.6 million for the first six months of 2023, while our net charge-offs were only $19.1 million and $16.1 million, respectively, for those six-month periods. The Bank's total allowance for credit losses ("ACL") was $574.1 million at June 30, 2024, an increase of $147.3 million compared to $426.8 million at June 30, 2023. The Bank's annualized returns on average assets, average common stockholders' equity and average tangible common stockholders' equity for the second quarter of 2024 were 1.92%, 13.98% and 16.11%, respectively, compared to 2.27%, 15.14% and 17.78%, respectively, for the second quarter of 2023. For the first six months of 2024, the Bank's annualized returns on average assets, average common stockholders' equity and average tangible common stockholders' equity were 1.94%, 14.07%, and 16.24%, respectively, compared to 2.34%, 15.19%, and 17.86%, respectively, for the first six months of 2023. The calculation of the Bank's returns on average common stockholders' equity and average tangible common stockholders' equity and the reconciliations to GAAP are included in the schedules accompanying this release. George Gleason, Chairman and Chief Executive Officer, stated, "We are very pleased with our record results for the quarter just ended giving us our seventh consecutive quarter of record net income and earnings per share and eighth consecutive quarter of record net interest income. These record results have allowed us to consistently increase dividends, significantly grow capital and opportunistically repurchase shares, all while almost doubling our allowance for credit losses." KEY BALANCE SHEET METRICS Total loans were $28.67 billion at June 30, 2024, a 21.5% increase from $23.61 billion at June 30, 2023. Deposits were $29.94 billion at June 30, 2024, a 24.9% increase from $23.98 billion at June 30, 2023. Total assets were $36.84 billion at June 30, 2024, a 19.7% increase from $30.76 billion at June 30, 2023. Common stockholders' equity was $5.07 billion at June 30, 2024, a 13.4% increase from $4.47 billion at June 30, 2023. Tangible common stockholders' equity was $4.41 billion at June 30, 2024, a 15.7% increase from $3.81 billion at June 30, 2023. Book value per common share was $44.67 at June 30, 2024, a $5.16 increase from $39.51 at June 30, 2023. Tangible book value per common share was $38.85 at June 30, 2024, a $5.18 increase from $33.67 at June 30, 2023. The Bank's strong profitability has allowed it to maintain strong capital ratios even as it has achieved significant growth. The Bank's ratio of total common stockholders' equity to total assets was 13.76% at June 30, 2024, compared to 14.53% at June 30, 2023. The Bank's ratio of total tangible common stockholders' equity to total tangible assets was 12.19% at June 30, 2024, compared to 12.66% at June 30, 2023. The calculations of the Bank's total common stockholders' equity, tangible common stockholders' equity, ratio of total tangible common stockholders' equity to total tangible assets and tangible book value per common share, and the reconciliations to GAAP, are included in the schedules accompanying this release. The Bank's Board recently approved a stock repurchase program authorizing the purchase of up to $200 million of outstanding common stock through expiration of the program on July 1, 2025. In evaluating stock repurchases, management will consider a variety of factors including the Bank's stock price, expected growth, capital position, alternative uses of capital, liquidity, financial performance, current and expected macroeconomic environment, regulatory requirements and other factors. ASSET QUALITY The Bank's various asset quality ratios for the quarter just ended continued to perform well compared to the industry, notwithstanding the challenging macroeconomic environment. This reflects the Bank's long-term focus on asset quality. The Bank's ratio of nonperforming non-purchased loans to total loans (excluding purchased loans) was 0.28% at June 30, 2024, compared to 0.15% as of June 30, 2023. The Bank's ratio of nonperforming assets to total assets (excluding purchased loans, except for their inclusion in total assets) was 0.41% at June 30, 2024, compared to 0.32% as of June 30, 2023. The Bank's annualized ratio of net charge-offs to average total loans was 0.17% for the quarter and 0.14% for the six months ended June 30, 2024, compared to 0.15% for both the second quarter and six months ended June 30, 2023. 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 at 10:00 a.m. CT (11:00 a.m. ET) on Thursday, July 18, 2024. Interested parties may access the conference call live via webcast on the Bank's investor relations website at https://ir.ozk.com/news/event-calendar, or may participate via telephone by registering using this online form. Upon registration, all telephone participants will receive the dial-in number along with a unique PIN number that can be used to access the call. A replay of the conference call webcast will be archived on the Bank's website for at least 30 days. The Bank files annual, quarterly and current reports, proxy materials, and other information required by the Securities Exchange Act of 1934 with the Federal Deposit Insurance Corporation ("FDIC"), copies of which are available electronically at the FDIC's website at https://efr.fdic.gov/fcxweb/efr/index.html and are also available on the Bank's investor relations website at ir.ozk.com. To receive automated email alerts for these materials please visit https://ir.ozk.com/other/email-alerts to sign up. NON-GAAP FINANCIAL MEASURES This release contains certain non-GAAP financial measures. The Bank uses these non-GAAP financial measures, specifically return on average common stockholders' equity, return on average tangible common stockholders' equity, tangible book value per common share, total common stockholders' equity, total tangible common stockholders' equity, the ratio of total tangible common stockholders' equity to total tangible assets, and PPNR, to assess the strength of its capital, its ability to generate earnings on tangible capital invested by its shareholders and trends in its net revenue. These measures typically adjust GAAP financial measures to exclude intangible assets or provision for credit losses. Management believes presentation of these non-GAAP financial measures provides useful supplemental information which contributes to a proper understanding of the financial results and capital levels of the Bank. These non-GAAP disclosures should not be viewed as a substitute for financial results determined in accordance with GAAP, and they are not necessarily comparable to non-GAAP performance measures that may be presented by other banks. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are included in the tables at the end of this release under the caption "Reconciliation of Non-GAAP Financial Measures." FORWARD-LOOKING STATEMENTS This press release and other communications by the Bank include certain "forward-looking statements" regarding the Bank's plans, expectations, thoughts, beliefs, estimates, goals and outlook for the future that are intended to be covered by the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on management's expectations as well as certain assumptions and estimates made by, and information available to, management at the time. Those statements are not guarantees of future results or performance and are subject to certain known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those expressed in, or implied by, such forward-looking statements. These risks, uncertainties and other factors include, but are not limited to: potential delays or other problems in implementing the Bank's growth, expansion and acquisition strategies, including obtaining regulatory or other approvals, delays in acquiring satisfactory sites, obtaining permits and designing, constructing and opening new offices, relocating, selling or closing existing offices, or integrating any acquisitions; the availability of and access to capital; possible downgrades in the Bank's credit ratings or outlook which could increase the costs of or decrease the availability of funding from capital markets; the ability to attract new or retain existing deposits or to retain or grow loans, including growth from unfunded closed loans; the ability to generate future revenue growth or to control future growth in non-interest expense; interest rate fluctuations, including changes in the yield curve between short-term and long-term interest rates or changes in the relative relationships of various interest rate indices; competitive factors and pricing pressures, including their effect on the Bank's net interest margin or core spread; general economic, unemployment, credit market and real estate market conditions, and the effect of such conditions on the creditworthiness of borrowers, collateral values, the value of investment securities and asset recovery values; conditions within the banking industry; recently enacted and potential new laws and regulatory requirements or changes to existing laws and regulatory requirements, including changes affecting oversight of the financial services industry, changes intended to manage or mitigate climate and related environmental risks or changes in the interpretation and enforcement of such laws and requirements, changes as a result of the U.S. presidential and congressional elections, and the costs and expenses to comply with new and/or existing legislation and regulatory requirements; uncertainty regarding changes in U.S. government monetary and fiscal policy; the impact of any U.S. federal government shutdown or budgetary crisis; FDIC special assessments or changes to regular assessments; the ability to keep pace with technological changes, including changes regarding artificial intelligence and maintaining cybersecurity; the impact of any failure in, or breach of, our operational or security systems or infrastructure, or those of third parties with whom we do business or others, including as a result of cyberattacks or an increase in the incidence or severity of fraud, illegal payments, security breaches or other illegal acts impacting the Bank, its customers or others; natural disasters; acts of war or terrorism; the potential impact of continuing inflationary pressures; the potential impact of supply chain disruptions; national or international political instability or military conflict, including the conflict in the Middle East and the ongoing war in Ukraine; competition for and costs of recruiting and retaining qualified personnel; impairment of our goodwill; adoption of new accounting standards, or changes in existing standards; and adverse results (including costs, fines, reputational harm and/or other negative effects) from current or future litigation, regulatory examinations or other legal and/or regulatory actions or rulings as well as other factors identified in this communication or as detailed from time to time in our public filings, including those factors described in the disclosures under the headings "Forward-Looking Information" and "Item 1A. Risk Factors" in our most recent Annual Report on Form 10-K for the year ended December 31, 2023 and our quarterly reports on Form 10-Q. Should one or more of the foregoing risks materialize, or should underlying assumptions prove incorrect, actual results or outcomes may vary materially from those described in, or implied by, such forward-looking statements. The Bank disclaims any obligation to update or revise any forward-looking statements based on the occurrence of future events, the receipt of new information or otherwise. GENERAL INFORMATION Bank OZK (NASDAQ:OZK) is a regional bank providing innovative financial solutions delivered by expert bankers with a relentless pursuit of excellence. Established in 1903, Bank OZK conducts banking operations in approximately 240 offices in nine states including Arkansas, Georgia, Florida, North Carolina, Tennessee, Texas, New York, California and Mississippi and had $36.84 billion in total assets as of June 30, 2024. For more information, visit www.ozk.com.   Bank OZKConsolidated Balance SheetsUnaudited     June 30, 2024   December 31, 2023   (Dollars in thousands) ASSETS       Cash and cash equivalents $         2,568,813     $         2,149,529   Investment securities – available for sale ("AFS")           2,981,929               3,244,371   Federal Home Loan Bank of Dallas ("FHLB") and other bankers' bank stocks           24,453               50,400   Non-purchased loans           28,455,342               26,195,030   Purchased loans           218,343               264,045   Allowance for loan losses           (407,079 )             (339,394 ) Net Loans           28,266,606               26,119,681   Premises and equipment, net           702,505               676,821   Foreclosed assets           71,023               61,720   Accrued interest receivable           177,403               170,110   Bank owned life insurance ("BOLI")           819,602               808,490   Goodwill           660,789               660,789   Other, net           563,050               295,546   Total assets $         36,836,173     $         34,237,457           LIABILITIES AND STOCKHOLDERS' EQUITY       Deposits:       Demand non-interest bearing $         4,045,666     $         4,095,874   Savings and interest bearing transaction           9,209,732               9,074,296   Time           16,688,265               14,234,973   Total deposits           29,943,663               27,405,143   Other borrowings           400,943               805,318   Subordinated notes           348,164               347,761   Subordinated debentures           121,652               121,652   Reserve for losses on unfunded credit commitments           167,022               161,834   Accrued interest payable and other liabilities           445,944               255,773   Total liabilities $         31,427,388     $         29,097,481           Commitments and contingencies               Stockholders' equity:       Preferred Stock: $0.01 par value; 100,000,000 shares authorized; 14,000,000 issued and outstanding at June 30, 2024 and December 31, 2023           338,980               338,980   Common Stock: $0.01 par value; 300,000,000 shares authorized; 113,465,238 and 113,148,672 shares issued and outstanding at June 30, 2024 and December 31, 2023, respectively           1,135               1,131   Additional paid-in capital           1,615,101               1,612,446   Retained earnings           3,553,523               3,283,818   Accumulated other comprehensive loss           (100,939 )             (97,374 ) Total stockholders' equity before noncontrolling interest           5,407,800               5,139,001   Noncontrolling interest           985               975   Total stockholders' equity           5,408,785               5,139,976   Total liabilities and stockholders' equity $         36,836,173     $         34,237,457     Bank OZKConsolidated Statements of IncomeUnaudited     Three Months Ended June 30,   Six Months Ended June 30,     2024       2023       2024       2023     (Dollars in thousands, except per share amounts) Interest income:               Non-purchased loans $         616,648     $         472,524     $         1,203,629     $         887,420   Purchased loans           4,644               5,322               9,604               11,840   Investment securities:               Taxable           8,793               9,704               18,126               19,875   Tax-exempt           11,147               9,489               22,321               18,753   Deposits with banks           26,604               11,407               51,210               19,277   Total interest income           667,836               508,446               1,304,890               957,165                   Interest expense:               Deposits           270,804               136,122               525,126               229,754   Other borrowings           3,964               10,591               4,715               16,013   Subordinated notes           2,603               2,603               5,177               5,177   Subordinated debentures           2,471               2,306               4,944               4,545   Total interest expense           279,842               151,622               539,962               255,489                   Net interest income           387,994               356,824               764,928               701,676   Provision for credit losses           49,012               41,774               91,935               77,602   Net interest income after provision for credit losses           338,982               315,050               672,993               624,074                   Non-interest income:               Service charges on deposit accounts:               NSF fees           —               1,004               —               1,995   Overdraft fees           3,364               3,369               6,790               6,656   All other service charges           7,558               7,187               14,397               13,688   Trust income           2,082               2,113               4,406               4,146   BOLI income           5,606               5,069               11,112               10,043   Loan service, maintenance and other fees           6,481               4,095               12,824               8,170   Gains on sales of other assets           1,073               5,033               1,532               5,377   Net gains on investment securities           125               620               535               2,336   Other           2,493               3,497               6,271               7,384   Total non-interest income           28,782               31,987               57,867               59,795                   Non-interest expense:               Salaries and employee benefits           73,409               65,219               142,973               128,468   Net occupancy and equipment           18,421               19,476               36,395               37,560   Other operating expenses           45,621               44,660               91,396               89,543   Total non-interest expense           137,451               129,355               270,764               255,571                   Income before taxes           230,313               217,682               460,096               428,298   Provision for income taxes           52,778               45,717               107,005               86,420   Net income           177,535               171,965               353,091               341,878   Earnings attributable to noncontrolling interest           8               (1 )             (10 )             (13 ) Preferred stock dividends           4,047               4,047               8,094               8,094   Net income available to common stockholders $         173,496     $         167,917     $         344,987     $         333,771                   Basic earnings per common share $         1.53     $         1.47     $         3.04     $         2.89                   Diluted earnings per common share $         1.52     $         1.47     $         3.03     $         2.88     Bank OZKConsolidated Statements of Stockholders' EquityUnaudited     Preferred Stock   Common Stock   Additional Paid-in Capital   Retained Earnings   Accumulated Other Comprehensive (Loss) Income   Non-Controlling Interest   Total   (Dollars in thousands, except per share amounts) Three months ended June 30, 2024:                           Balances – March 31, 2024 $         338,980     $         1,134     $         1,609,268     $         3,424,672     $         (107,207 )   $         993     $         5,267,840   Net income           —               —               —               177,535               —               —               177,535   Earnings attributable to noncontrolling interest           —               —               —               8               —               (8 )             —   Total other comprehensive income           —               —               —               —               6,268               —               6,268   Preferred stock dividends, $0.28906 per share           —               —               —               (4,047 )             —               —               (4,047 ) Common stock dividends, $0.39 per share           —               —               —               (44,645 )             —               —               (44,645 ) Issuance of 33,636 shares of common stock pursuant to stock-based compensation plans           —               1               232               —               —               —               233   Stock-based compensation expense           —               —               5,601               —               —               —               5,601   Forfeitures of 3,214 shares of unvested restricted common stock           —               —               —               —               —               —               —   Balances – June 30, 2024 $         338,980     $         1,135     $         1,615,101     $         3,553,523     $         (100,939 )   $         985     $         5,408,785                               Six months ended June 30, 2024:                           Balances – December 31, 2023 $         338,980     $         1,131     $         1,612,446     $         3,283,818     $         (97,374 )   $         975     $         5,139,976   Cumulative effect of change in accounting principle           —               —               —               12,690               —               —               12,690   Balances – January 1, 2024           338,980               1,131               1,612,446               3,296,508               (97,374 )             975               5,152,666   Net income           —               —               —               353,091               —               —               353,091   Earnings attributable to noncontrolling interest           —               —               —               (10 )             —               10               —   Total other comprehensive loss           —               —               —               —               (3,565 )             —               (3,565 ) Preferred stock dividends, $0.57812 per share           —               —               —               (8,094 )             —               —               (8,094 ) Common stock dividends, $0.77 per share           —               —               —               (87,972 )             —               —               (87,972 ) Issuance of 518,454 shares of common stock pursuant to stock-based compensation plans           —               6               411               —               —               —               417   Repurchase and cancellation of 184,415 shares of common stock withheld for tax pursuant to stock-based compensation plans           —               (2 )             (8,008 )             —               —               —               (8,010 ) Stock-based compensation expense           —               —               10,252               —               —               —               10,252   Forfeitures of 17,473 shares of unvested restricted common stock           —               —               —               —               —               —               —   Balances – June 30, 2024 $         338,980     $         1,135     $         1,615,101     $         3,553,523     $         (100,939 )   $         985     $         5,408,785     Bank OZKConsolidated Statements of Stockholders' EquityUnaudited     Preferred Stock   Common Stock   Additional Paid-in Capital   Retained Earnings   Accumulated Other Comprehensive (Loss) Income   Non-Controlling Interest   Total   (Dollars in thousands, except per share amounts) Three months ended June 30, 2023:                           Balances – March 31, 2023 $         338,980     $         1,151     $         1,664,569     $         2,898,904     $         (141,677 )   $         1,371     $         4,763,298   Net income           —               —               —               171,965               —               —               171,965   Earnings attributable to noncontrolling interest           —               —               —               (1 )             —               1               —   Total other comprehensive income (loss)           —               —               —               —               (17,754 )             —               (17,754 ) Preferred stock dividends, $0.28906 per share           —               —               —               (4,047 )             —                   (4,047 ) Common stock dividends, $0.35 per share           —               —               —               (40,574 )             —               —               (40,574 ) Issuance of 30,148 shares of common stock pursuant to stock-based compensation plans           —               —               23               —               —               —               23   Repurchase and cancellation of 1,956,101 shares of common stock under share repurchase program, including excise tax           —               (20 )             (66,106 )             —               —               —               (66,126 ) Stock-based compensation expense           —               —               4,478               —               —               —               4,478   Forfeitures of 8,706 shares of unvested restricted common stock           —               —               —