LITTLE ROCK, Ark., July 21, 2022 (GLOBE NEWSWIRE) -- Bank OZK (the "Bank") (NASDAQ:OZK) today announced that net income available to common stockholders for the second quarter of 2022 was $132.4 million, a 12.1% decrease from $150.5 million for the second quarter of 2021. Diluted earnings per common share for the second quarter of 2022 were $1.10, a 5.2% decrease from $1.16 for the second quarter of 2021.

For the six months ended June 30, 2022, net income available to common stockholders was $260.4 million, a 12.9% decrease from $299.0 million for the first six months of 2021. Diluted earnings per common share for the first six months of 2022 were $2.12, a 7.8% decrease from $2.30 for the first six months of 2021.

The Bank's provision for credit losses was $7.0 million for the second quarter and $11.2 million for the first six months of 2022 compared to negative provision for credit losses of $30.9 million for the second quarter and $62.5 million for the first six months of 2021. The Bank's total allowance for credit losses ("ACL") was $299.9 million at June 30, 2022. The calculations of the Bank's provision expense for the second quarter and first six months of 2022 and its total ACL at June 30, 2022 were based on a number of key estimates, assumptions and economic forecasts. The Bank's provision expense for the second quarter and first six months of 2022 and its ACL at June 30, 2022 included certain qualitative adjustments to capture items that management believed were not fully reflected in its modeled results.

Pre-tax pre-provision net revenue ("PPNR") was $182.8 million for the second quarter of 2022, a 10.9% increase from $164.8 million for the second quarter of 2021. For the six months ended June 30, 2022, PPNR was $355.9 million, a 9.4% increase from $325.5 million for the first six 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 second quarter of 2022 were 2.02%, 12.40% and 14.69%, respectively, compared to 2.24%, 13.65% and 16.10%, respectively, for the second 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 six months of 2022 were 2.00%, 12.03%, and 14.20%, respectively, compared to 2.23%, 13.81%, and 16.33%, respectively, for the first six 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 excellent results for the second quarter of 2022. Our results were highlighted by our third consecutive quarter of record RESG loan originations and solid contributions from Community Banking and other lending teams, reflecting the importance of organic growth and increased portfolio diversification in our long-term strategy. 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 $18.74 billion at June 30, 2022, a 2.6% increase from $18.27 billion at June 30, 2021. Non-purchased loans were $18.30 billion at June 30, 2022, a 3.9% increase from $17.61 billion at June 30, 2021. Purchased loans, which consist of loans acquired in previous acquisitions, were $0.45 billion at June 30, 2022, a 32.5% decrease from $0.66 billion at June 30, 2021.

Deposits were $19.98 billion at June 30, 2022, a 3.5% decrease from $20.71 billion at June 30, 2021. Total assets were $25.92 billion at June 30, 2022, a 2.6% decrease from $26.61 billion at June 30, 2021.

Common stockholders' equity was $4.27 billion at June 30, 2022, a 5.2% decrease from $4.50 billion at June 30, 2021. Tangible common stockholders' equity was $3.60 billion at June 30, 2022, a 5.9% decrease from $3.83 billion at June 30, 2021. Book value per common share was $35.87 at June 30, 2022, a 3.4% increase from $34.70 at June 30, 2021. Tangible book value per common share was $30.27 at June 30, 2022, a 2.5% increase from $29.52 at June 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 16.47% at June 30, 2022, compared to 16.92% at June 30, 2021. Its ratio of total tangible common stockholders' equity to total tangible assets was 14.26% at June 30, 2022, compared to 14.77% at June 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 3.7 million shares of its common stock at a weighted average price of $39.93, for a total of $147.4 million. During the first six months of 2022, the Bank repurchased approximately 6.6 million shares of its common stock at a weighted average price of $42.42, for a total of $279.0 million. In evaluating its plans for future stock repurchases, the Bank considers a variety of factors including its capital position, alternative uses of capital, liquidity, financial performance, stock price, regulatory requirements and other factors. The Bank may suspend its stock repurchase program 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 July 22, 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, 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 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 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 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; 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 actions in response to the coronavirus ("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; 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 $25.92 billion in total assets as of June 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 Unaudited

	June 30,			December 31,
	2022			2021
	(Dollars in thousands, except per share amounts)
ASSETS
Cash and cash equivalents	$	1,140,448		$	2,053,829
Investment securities ― available for sale ("AFS")		3,705,807			3,916,733
Investment securities ― trading		4,080			14,957
Federal Home Loan Bank of Dallas and other bankers' bank stocks		36,654			40,788
Non-purchased loans		18,297,638			17,791,610
Purchased loans		445,080			516,215
Allowance for loan losses		(190,795	)		(217,380	)
Net loans		18,551,923			18,090,445
Premises and equipment, net		687,093			695,857
Foreclosed assets		2,593			5,744
Accrued interest receivable		82,756			83,025
Bank owned life insurance ("BOLI")		784,117			774,822
Goodwill and other intangible assets, net		666,029			669,063
Other, net		258,465			185,167
Total assets	$	25,919,965		$	26,530,430

LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Demand non-interest bearing	$	5,117,961		$	4,983,788
Savings and interest bearing transaction		9,655,436			9,245,727
Time		5,210,790			5,979,619
Total deposits		19,984,187			20,209,134
Other borrowings		505,221			756,321
Subordinated notes		346,536			346,133
Subordinated debentures		121,310			121,033
Reserve for losses on unfunded loan commitments		109,143			71,609
Accrued interest payable and other liabilities		243,666			186,840
Total liabilities		21,310,063			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 June 30, 2022 and December 31, 2021		338,980			338,980
Common stock; $0.01 par value; 300,000,000 shares authorized; 118,996,021 and 125,443,748 shares issued and outstanding at June 30, 2022 and December 31, 2021, respectively		1,190			1,254
Additional paid-in capital		1,817,650			2,093,702
Retained earnings		2,563,130			2,378,466
Accumulated other comprehensive (loss) income		(114,168	)		23,841
Total stockholders' equity before noncontrolling interest		4,606,782			4,836,243
Noncontrolling interest		3,120			3,117
Total stockholders' equity		4,609,902			4,839,360
Total liabilities and stockholders' equity	$	25,919,965		$	26,530,430


Bank OZK Consolidated Statements of Income Unaudited

	Three Months Ended June 30,						Six Months Ended June 30,
	2022			2021			2022			2021
	(Dollars in thousands, except per share amounts)
Interest income:
Non-purchased loans	$	256,264		$	238,554		$	496,259		$	478,381
Purchased loans		8,982			11,699			17,152			23,635
Investment securities:
Taxable		10,367			9,467			20,978			17,550
Tax-exempt		4,020			3,883			7,006			7,563
Deposits with banks and federal funds sold		1,855			496			2,464			1,033
Total interest income		281,488			264,099			543,859			528,162

Interest expense:
Deposits		10,855			18,231			19,347			42,582
Other borrowings		1,042			1,002			2,039			1,982
Subordinated notes		2,603			3,181			5,177			6,326
Subordinated debentures		1,195			939			2,159			1,881
Total interest expense		15,695			23,353			28,722			52,771

Net interest income		265,793			240,746			515,137			475,381
Provision for credit losses		7,025			(30,932	)		11,215			(62,491	)
Net interest income after provision for credit losses		258,768			271,678			503,922			537,872

Non-interest income:
Service charges on deposit accounts:
NSF/Overdraft fees		4,247			3,244			8,449			6,567
All other service charges		7,184			7,067			13,874			13,409
Trust income		1,911			1,911			4,005			4,118
BOLI income:
Increase in cash surrender value		4,846			4,919			9,639			9,799
Death benefits		—			—			297			1,409
Loan service, maintenance and other fees		3,603			3,953			6,621			7,504
Gains on sales of other assets		784			2,341			7,776			8,169
Net (losses) gains on investment securities		531			—			441			—
Other		3,214			4,307			6,694			8,884
Total non-interest income		26,320			27,742			57,796			59,859

Non-interest expense:
Salaries and employee benefits		54,412			52,119			109,060			105,764
Net occupancy and equipment		17,014			16,168			34,230			32,636
Other operating expenses		37,874			35,424			73,726			71,371
Total non-interest expense		109,300			103,711			217,016			209,771

Income before taxes		175,788			195,709			344,702			387,960
Provision for income taxes		39,375			45,161			75,786			88,978
Net income		136,413			150,548			268,916			298,982
Earnings attributable to noncontrolling interest		(8	)		(13	)		(3	)		(32	)
Preferred stock dividends		4,047			—			8,527			—
Net income available to common stockholders	$	132,358		$	150,535		$	260,386		$	298,950

Basic earnings per common share	$	1.10		$	1.16		$	2.13		$	2.31

Diluted earnings per common share	$	1.10		$	1.16		$	2.12		$	2.30


Bank OZK Consolidated Statements of Stockholders' Equity Unaudited

	Preferred Stock		Common Stock			Additional Paid-In Capital			Retained Earnings			Accumulated Other Comprehensive (Loss) Income			Non- Controlling Interest		Total
	(Dollars in thousands, except per share amounts)
Three months ended June 30, 2022:
Balances – March 31, 2022	$	338,980	$	1,227		$	1,962,126		$	2,468,652		$	(80,928	)	$	3,112	$	4,693,169
Net income		—		—			—			136,413			—			—		136,413
Earnings attributable to noncontrolling interest		—		—			—			(8	)		—			8		—
Total other comprehensive loss		—		—			—			—			(33,240	)		—		(33,240	)
Preferred stock dividends, $0.28906 per share		—		—			—			(4,047	)		—			—		(4,047	)
Common stock dividends, $0.31 per share		—		—			—			(37,880	)		—			—		(37,880	)
Issuance of 20,087 shares of common stock for exercise of stock options		—		—			594			—			—			—		594
Issuance of 21,416 shares of unvested restricted common stock		—		—			—			—			—			—		—
Repurchase and cancellation of 3,689,819 shares of common stock under share repurchase program		—		(37	)		(147,396	)		—			—			—		(147,433	)
Stock-based compensation expense		—		—			2,326			—			—			—		2,326
Forfeitures of 32,858 shares of unvested restricted common stock		—		—			—			—			—			—		—
Balances – June 30, 2022	$	338,980	$	1,190		$	1,817,650		$	2,563,130		$	(114,168	)	$	3,120	$	4,609,902

Six months ended June 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		—		—			—			268,916			—			—		268,916
Earnings attributable to noncontrolling interest		—		—			—			(3	)		—			3		—
Total other comprehensive loss		—		—			—			—			(138,009	)		—		(138,009	)
Preferred stock dividends, $0.60906 per share		—		—			—			(8,527	)		—			—		(8,527	)
Common stock dividends, $0.61 per share		—		—			—			(75,722	)		—			—		(75,722	)
Issuance of 69,107 shares of common stock for exercise of stock options		—		1			2,079			—			—			—		2,080
Issuance of 220,822 shares of unvested restricted common stock		—		2			(2	)		—			—			—		—
Repurchase and cancellation of 6,572,832 shares of common stock under share repurchase program		—		(65	)		(278,932	)		—			—			—		(278,997	)
Repurchase and cancellation of 112,974 of shares of common stock withheld for tax pursuant to restricted stock vesting		—		(1	)		(5,398	)		—			—			—		(5,399	)
Stock-based compensation expense		—		—			6,200			—			—			—		6,200
Forfeitures of 51,850 shares of unvested restricted common stock		—		(1	)		1			—			—			—		—
Balances – June 30, 2022	$	338,980	$	1,190		$	1,817,650		$	2,563,130		$	(114,168	)	$	3,120	$	4,609,902


Bank OZK Consolidated Statements of Stockholders' Equity Unaudited

	Common Stock			Additional Paid-In Capital			Retained Earnings			Accumulated Other Comprehensive Income			Non- Controlling Interest		Total
	(Dollars in thousands, except per share amounts)
Three months ended June 30, 2021:
Balances – March 31, 2021	$	1,297		$	2,272,046		$	2,059,398		$	50,464		$	3,104	$	4,386,309
Net income		—			—			150,548			—			—		150,548
Earnings attributable to noncontrolling interest		—			—			(13	)		—			13		—
Total other comprehensive loss		—			—			—			(337	)		—		(337	)
Common stock dividends, $0.28 per share		—			—			(36,819	)		—			—		(36,819	)
Issuance of 14,300 shares of common stock for exercise of stock options		—			515			—			—			—		515
Issuance of 20,328 shares of unvested restricted common stock		—			—			—			—			—		—
Repurchase and cancellation of 153 shares of common stock		—			(6	)		—			—			—		(6	)
Stock-based compensation expense		—			4,583			—			—			—		4,583
Forfeitures of 33,241 shares of unvested restricted common stock		—			—			—			—			—		—
Balances – June 30, 2021	$	1,297		$	2,277,138		$	2,173,114		$	50,127		$	3,117	$	4,504,793

Six months ended June 30, 2021:
Balances – December 31, 2020	$	1,294		$	2,265,850		$	1,946,875		$	58,252		$	3,085	$	4,275,356
Net income		—			—			298,982			—			—		298,982
Earnings attributable to noncontrolling interest		—			—			(32	)		—			32		—
Total other comprehensive income		—			—			—			(8,125	)		—		(8,125	)
Common stock dividends, $0.5575 per share		—			—			(72,711	)		—			—		(72,711	)
Issuance of 142,400 shares of common stock for exercise of stock options		1			5,007			—			—			—		5,008
Issuance of 332,831 shares of unvested restricted common stock		3			(3	)		—			—			—		—
Repurchase and cancellation of 55,893 shares of common stock		(1	)		(1,976	)		—			—			—		(1,977	)
Stock-based compensation expense		—			8,260			—			—			—		8,260
Forfeitures of 49,646 shares of unvested restricted common stock		—			—			—			—			—		—
Balances – June 30, 2021	$	1,297		$	2,277,138		$	2,173,114		$	50,127		$	3,117	$	4,504,793


Bank OZK Summary of Non-Interest Expense Unaudited

	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
	(Dollars in thousands)
Salaries and employee benefits	$	54,412	$	52,119	$	109,060	$	105,764
Net occupancy and equipment		17,014		16,168		34,230		32,636
Other operating expenses:
Professional and outside services		8,461		7,724		15,543		14,050
Software and data processing		6,223		6,006		12,144		11,798
Travel and meals		2,186		1,419		3,944		2,194
Deposit insurance and assessments		2,100		2,885		4,250		6,405
Telecommunication services		1,921		2,165		3,931		4,397
Postage and supplies		1,507		1,544		3,205		3,188
ATM expense		1,488		1,486		2,997		2,769
Advertising and public relations		1,103		593		2,362		902
Loan collection and repossession expense		353		540		678		1,050
Writedowns of foreclosed and other assets		—		123		258		1,486
Amortization of intangibles		1,516		1,602		3,033		3,332
Amortization of CRA and tax credit investments		4,628		3,227		9,730		7,352
Other		6,388		6,110		11,651		12,448
Total non-interest expense	$	109,300	$	103,711	$	217,016	$	209,771


Bank OZK Summary of Total Loans Outstanding Unaudited

	June 30, 2022					December 31, 2021
	(Dollars in thousands)

Real estate:
Residential 1-4 family	$	975,794		5.2	%	$	887,024		4.8	%
Non-farm/non-residential		4,201,587		22.4			3,782,892		20.7
Construction/land development		7,810,223		41.7			8,246,674		45.0
Agricultural		238,610		1.3			247,727		1.4
Multifamily residential		1,123,955		6.0			934,845		5.1



Total real estate		14,350,169		76.6			14,099,162		77.0
Commercial and industrial		696,105		3.7			510,784		2.8
Consumer		2,332,202		12.4			2,185,429		11.9
Other		1,364,242		7.3			1,512,450		8.3



Total loans		18,742,718		100.0	%		18,307,825		100.0	%
Allowance for loan losses		(190,795	)				(217,380	)



Net loans	$	18,551,923				$	18,090,445


Bank OZK Allowance for Credit Losses Unaudited

	Allowance for Loan Losses			Reserve for Losses on Unfunded Loan Commitments			Total Allowance for Credit Losses
	(Dollars in thousands)
Three months ended June 30, 2022:
Balances – March 31, 2022	$	204,213		$	89,327		$	293,540
Net charge-offs		(627	)		—			(627	)
Provision for credit losses		(12,791	)		19,816			7,025
Balances – June 30, 2022	$	190,795		$	109,143		$	299,938

Six months ended June 30, 2022:
Balances – December 31, 2021	$	217,380		$	71,609		$	288,989
Net charge-offs		(266	)		—			(266	)
Provision for credit losses		(26,319	)		37,534			11,215
Balances – June 30, 2022	$	190,795		$	109,143		$	299,938

Three months ended June 30, 2021:
Balances – March 31, 2021	$	268,077		$	74,230		$	342,307
Net charge-offs		(3,811	)		—			(3,811	)
Provision for credit losses		(15,513	)		(15,419	)		(30,932	)
Balances – June 30, 2021	$	248,753		$	58,811		$	307,564

Six months ended June 30, 2021:
Balances – December 31, 2020	$	295,824		$	81,481		$	377,305
Net charge-offs		(7,250	)		—			(7,250	)
Provision for credit losses		(39,821	)		(22,670	)		(62,491	)
Balances – June 30, 2021	$	248,753		$	58,811		$	307,564


Bank OZK Summary of Deposits – By Account Type Unaudited

	June 30, 2022				December 31, 2021
	(Dollars in thousands)
Non-interest bearing	$	5,117,961	25.6	%	$	4,983,788	24.7	%
Interest bearing:
Transaction (NOW)		3,393,659	17.0			3,412,369	16.9
Savings and money market		6,261,777	31.3			5,833,358	28.9
Time deposits		5,210,790	26.1			5,979,619	29.5
Total deposits	$	19,984,187	100.0	%	$	20,209,134	100.0	%


Summary of Deposits – By Customer Type Unaudited

	June 30, 2022				December 31, 2021
	(Dollars in thousands)
Non-Interest Bearing	$	5,117,961	25.6	%	$	4,983,788	24.7	%
Interest Bearing:
Consumer and Commercial:
Consumer – Non-Time		4,462,108	22.3			4,334,378	21.4
Consumer – Time		3,939,342	19.7			4,318,742	21.4
Commercial – Non-Time		2,788,061	14.0			2,634,817	13.0
Commercial – Time		641,777	3.2			905,347	4.5
Public Funds		1,828,026	9.1			2,094,800	10.4
Brokered		814,633	4.1			452,137	2.2
Reciprocal		392,279	2.0			485,125	2.4
Total deposits	$	19,984,187	100.0	%	$	20,209,134	100.0	%


Bank OZK Selected Consolidated Financial Data Unaudited

	Three Months Ended June 30,									Six Months Ended June 30,
	2022			2021			% Change			2022			2021			% Change
	(Dollars in thousands, except per share amounts)
Income statement data:
Net interest income	$	265,793		$	240,746			10.4	%	$	515,137		$	475,381			8.4	%
Provision for credit losses		7,025			(30,932	)	NM				11,215			(62,491	)	NM
Non-interest income		26,320			27,742			(5.1	)		57,796			59,859			(3.4	)
Non-interest expense		109,300			103,711			5.4			217,016			209,771			3.5
Net income		136,413			150,548			(9.4	)		268,916			298,982			(10.1	)
Preferred stock dividends		4,047			—		NM				8,527			—		NM
Net income available to common stockholders		132,358			150,535			(12.1	)		260,386			298,950			(12.9	)
Pre-tax pre-provision net revenue ⁽¹⁾		182,813			164,777			10.9			355,917			325,469			9.4
Common share and per common share data:
Diluted earnings per common share	$	1.10		$	1.16			(5.2	)%	$	2.12		$	2.30			(7.8	)%
Basic earnings per common share		1.10			1.16			(5.2	)		2.13			2.31			(7.8	)
Common stock dividends per share		0.31			0.28			10.7			0.61			0.5575			9.4
Book value per share		35.87			34.70			3.4			35.87			34.70			3.4
Tangible book value per common share ⁽¹⁾		30.27			29.52			2.5			30.27			29.52			2.5
Weighted-average diluted shares outstanding (thousands)		120,827			130,255			(7.2	)		122,905			130,109			(5.5	)
End of period shares outstanding (thousands)		118,996			129,720			(8.3	)		118,996			129,720			(8.3	)
Balance sheet data at period end:
Total assets	$	25,919,965		$	26,605,938			(2.6	)%	$	25,919,965		$	26,605,938			(2.6	)%
Total loans		18,742,718			18,271,670			2.6			18,742,718			18,271,670			2.6
Non-purchased loans		18,297,638			17,611,848			3.9			18,297,638			17,611,848			3.9
Purchased loans		445,080			659,822			(32.5	)		445,080			659,822			(32.5	)
Allowance for loan losses		190,795			248,753			(23.3	)		190,795			248,753			(23.3	)
Foreclosed assets		2,593			7,542			(65.6	)		2,593			7,542			(65.6	)
Investment securities − AFS		3,705,807			4,693,396			(21.0	)		3,705,807			4,693,396			(21.0	)
Goodwill and other intangible assets, net		666,029			672,125			(0.9	)		666,029			672,125			(0.9	)
Deposits		19,984,187			20,706,777			(3.5	)		19,984,187			20,706,777			(3.5	)
Other borrowings		505,221			758,677			(33.4	)		505,221			758,677			(33.4	)
Subordinated notes		346,536			224,236			54.5			346,536			224,236			54.5
Subordinated debentures		121,310			120,752			0.5			121,310			120,752			0.5
Unfunded balance of closed loans		17,369,767			11,709,818			48.3			17,369,767			11,709,818			48.3
Reserve for losses on unfunded loan commitments		109,143			58,811			85.6			109,143			58,811			85.6
Preferred stock		338,980			—		NM				338,980			—		NM
Total common stockholders' equity ⁽¹⁾		4,267,802			4,501,676			(5.2	)		4,267,802			4,501,676			(5.2	)
Net unrealized (losses) gains on investment securities AFS included in stockholders' equity		(114,168	)		50,127		NM				(114,168	)		50,127		NM
Loan (including purchased loans) to deposit ratio		93.79	%		88.24	%		5.6			93.79	%		88.24	%		5.6
Selected ratios:
Return on average assets ⁽²⁾		2.02	%		2.24	%					2.00	%		2.23	%
Return on average common stockholders' equity ^{(1) (2)}		12.40			13.65						12.03			13.81
Return on average tangible common stockholders' equity ^{(1) (2)}		14.69			16.10						14.20			16.33
Average common equity to total average assets		16.32			16.42						16.60			16.17
Net interest margin – FTE ⁽²⁾		4.52			3.95						4.38			3.91
Efficiency ratio		37.25			38.43						37.73			39.00
Net charge-offs to average non-purchased loans ^{(2) (3)}		0.03			0.09						0.05			0.08
Net charge-offs to average total loans ⁽²⁾		0.01			0.08						0.00			0.08
Nonperforming loans to total loans ⁽⁴⁾		0.16			0.22						0.16			0.22
Nonperforming assets to total assets ⁽⁴⁾		0.12			0.18						0.12			0.18
Allowance for loan losses to total loans ⁽⁵⁾		1.02			1.36						1.02			1.36
Other information:
Non-accrual loans ⁽⁴⁾	$	28,171		$	38,195					$	28,171		$	38,195
Accruing loans − 90 days past due ⁽⁴⁾		—			—						—			—
Troubled and restructured non-purchased loans − accruing ⁽⁴⁾		1,033			1,365						1,033			1,365

	⁽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 meaningful


Selected Consolidated Financial Data (continued) Unaudited

		Three Months Ended
		June 30, 2022			March 31, 2022			% Change
	(Dollars in thousands, except per share amounts)
Income statement data:
Net interest income		$	265,793		$	249,343			6.6	%
Provision for credit losses			7,025			4,190			67.7
Non-interest income			26,320			31,475			(16.4	)
Non-interest expense			109,300			107,715			1.5
Net income			136,413			132,503			3.0
Preferred stock dividends			4,047			4,480			(9.7	)
Net income available to common stockholders			132,358			128,028			3.4
Pre-tax pre-provision net revenue ⁽¹⁾			182,813			173,103			5.6
Common share and per common share data:
Diluted earnings per common share		$	1.10		$	1.02			7.8	%
Basic earnings per common share			1.10			1.03			6.8
Common stock dividends per share			0.31			0.300			3.3
Book value per share			35.87			35.47			1.1
Tangible book value per common share ⁽¹⁾			30.27			30.03			0.8
Weighted-average diluted shares outstanding (thousands)			120,827			125,004			(3.3	)
End of period shares outstanding (thousands)			118,996			122,677			(3.0	)
Balance sheet data at period end:
Total assets		$	25,919,965		$	26,562,353			(2.4	)%
Total loans			18,742,718			18,931,022			(1.0	)
Non-purchased loans			18,297,638			18,449,723			(0.8	)
Purchased loans			445,080			481,299			(7.5	)
Allowance for loan losses			190,795			204,213			(6.6	)
Foreclosed assets			2,593			3,417			(24.1	)
Investment securities − AFS			3,705,807			3,728,284			(0.6	)
Goodwill and other intangible assets, net			666,029			667,546			(0.2	)
Deposits			19,984,187			20,329,662			(1.7	)
Other borrowings			505,221			756,347			(33.2	)
Subordinated notes			346,536			346,333			0.1
Subordinated debentures			121,310			121,171			0.1
Unfunded balance of closed loans			17,369,767			14,954,367			16.2
Reserve for losses on unfunded loan commitments			109,143			89,327			22.2
Preferred stock			338,980			338,980			—
Total common stockholders' equity ⁽¹⁾			4,267,802			4,351,077			(1.9	)
Net unrealized gains on investment securities AFS included in stockholders' equity			(114,168	)		(80,928	)		(41.1	)
Loan (including purchased loans) to deposit ratio			93.79	%		93.12	%		0.7
Selected ratios:
Return on average assets ⁽²⁾			2.02	%		1.97	%
Return on average common stockholders' equity ^{(1) (2)}			12.40			11.67
Return on average tangible common stockholders' equity ^{(1) (2)}			14.69			13.73
Average common equity to average assets			16.32			16.86
Net interest margin – FTE ⁽²⁾			4.52			4.24
Efficiency ratio			37.25			38.22
Net charge-offs to average non-purchased loans ^{(2) (3)}			0.03			0.08
Net charge-offs to average total loans ⁽²⁾			0.01			(0.01	)
Nonperforming loans to total loans ⁽⁴⁾			0.16			0.21
Nonperforming assets to total assets ⁽⁴⁾			0.12			0.16
Allowance for loan losses to total loans ⁽⁵⁾			1.02			1.08
Other information:
Non-accrual loans ⁽⁴⁾		$	28,171		$	37,363
Accruing loans − 90 days past due ⁽⁴⁾			—			—
Troubled and restructured non-purchased loans − accruing ⁽⁴⁾			1,033			1,263

	⁽¹⁾		Calculations of pre-tax pre-provision net revenue, total common stockholders' equity, tangible book value per common share and returns on average common stockholders' equity and average tangible common stockholders' equity and the reconciliations to GAAP are included in the schedules accompanying this release.
	⁽²⁾		Ratios for interim periods annualized based on actual days.
	⁽³⁾		Excludes purchased loans and net charge-offs related to such loans.
	⁽⁴⁾		Excludes purchased loans, except for their inclusion in total assets.
	⁽⁵⁾		Excludes reserve for losses on unfunded loan commitments.


Bank OZK Supplemental Quarterly Financial Data Unaudited

		9/30/20			12/31/20			3/31/21			6/30/21			9/30/21			12/31/21			03/31/22			06/30/22
	(Dollars in thousands, except per share amounts)
Earnings Summary:
Net interest income		$	224,657		$	237,600		$	234,636		$	240,746		$	247,957		$	266,381		$	249,343		$	265,793
Federal tax (FTE) adjustment			1,605			1,533			1,275			1,355			1,106			1,009			1,017			1,300
Net interest income (FTE)			226,262			239,133			235,911			242,101			249,063			267,390			250,360			267,093
Provision for credit losses			(7,200	)		(6,750	)		31,559			30,932			7,454			7,992			(4,190	)		(7,025	)
Non-interest income			26,676			28,661			32,117			27,742			25,984			29,695			31,475			26,320
Non-interest expense			(105,641	)		(103,394	)		(106,059	)		(103,711	)		(110,397	)		(110,106	)		(107,715	)		(109,300	)
Pretax income (FTE)			140,097			157,650			193,528			197,064			172,104			194,971			169,930			177,088
FTE adjustment			(1,605	)		(1,533	)		(1,275	)		(1,355	)		(1,106	)		(1,009	)		(1,017	)		(1,300	)
Provision for income taxes			(29,251	)		(35,607	)		(43,818	)		(45,161	)		(40,713	)		(44,197	)		(36,410	)		(39,375	)
Noncontrolling interest			12			3			(19	)		(13	)		5			(5	)		5			(8	)
Preferred stock dividend			—			—			—			—			—			—			(4,480	)		(4,047	)
Net income available to common stockholders		$	109,253		$	120,513		$	148,416		$	150,535		$	130,290		$	149,760		$	128,028		$	132,358
Earnings per common share – diluted		$	0.84		$	0.93		$	1.14		$	1.16		$	1.00		$	1.17		$	1.02		$	1.10
PPNR		$	145,692		$	162,867		$	160,694		$	164,777		$	163,544		$	185,970		$	173,103		$	182,813
Non-interest Income:
Service charges on deposit accounts:
NSF/Overdraft fees		$	3,494		$	4,024		$	3,323		$	3,244		$	4,080		$	4,315		$	4,201		$	4,247
All other service charges			5,933			5,959			6,342			7,067			7,097			7,149			6,690			7,184
Trust income			1,936			1,909			2,206			1,911			2,247			2,141			2,094			1,911
BOLI income:
Increase in cash surrender value			5,081			5,034			4,881			4,919			4,940			4,901			4,793			4,846
Death benefits			—			—			1,409			—			—			618			297			—
Loan service, maintenance and other fees			3,351			3,797			3,551			3,953			3,307			3,148			3,018			3,603
Gains on sales of other assets			891			5,189			5,828			2,341			463			1,330			6,992			784
Net gains (losses) on investment securities			2,244			—			—			—			—			504			(90	)		531
Other			3,746			2,749			4,577			4,307			3,850			5,589			3,480			3,214
Total non-interest income		$	26,676		$	28,661		$	32,117		$	27,742		$	25,984		$	29,695		$	31,475		$	26,320
Non-interest Expense:
Salaries and employee benefits		$	53,119		$	53,832		$	53,645		$	52,119		$	53,769		$	55,034		$	54,648		$	54,412
Net occupancy and equipment			16,676			15,617			16,468			16,168			17,161			17,004			17,215			17,014
Other operating expenses			35,846			33,945			35,946			35,424			39,467			38,068			35,852			37,874
Total non-interest expense		$	105,641		$	103,394		$	106,059		$	103,711		$	110,397		$	110,106		$	107,715		$	109,300
Balance Sheet Data:
Total assets		$	26,888,308		$	27,162,596		$	27,276,892		$	26,605,938		$	26,143,367		$	26,530,430		$	26,562,353		$	25,919,965
Non-purchased loans			18,419,958			18,401,495			17,979,435			17,611,848			17,707,452			17,791,610			18,449,723			18,297,638
Purchased loans			938,485			807,673			735,630			659,822			597,851			516,215			481,299			445,080
Investment securities – AFS			3,468,243			3,405,351			4,162,479			4,693,396			3,846,496			3,916,733			3,728,284			3,705,807
Deposits			21,287,405			21,450,356			21,296,442			20,706,777			20,102,440			20,209,134			20,329,662			19,984,187
Unfunded balance of closed loans			11,604,614			11,847,117			11,780,099			11,709,818			12,385,369			13,619,578			14,954,367			17,369,767
Preferred stock			—			—			—			—			—			338,980			338,980			338,980
Total stockholders' equity before noncontrolling interest			4,186,285			4,272,271			4,383,205			4,501,676			4,553,240			4,836,243			4,690,057			4,606,782


Bank OZK Supplemental Quarterly Financial Data (Continued) Unaudited

		9/30/20			12/31/20			3/31/21			6/30/21			9/30/21			12/31/21			03/31/22			06/30/22
	(Dollars in thousands)
Allowance for Credit Losses:
Balance at beginning of period		$	374,494		$	377,273		$	377,305		$	342,307		$	307,564		$	298,798		$	288,989		$	293,540
Net charge-offs			(4,421	)		(6,718	)		(3,439	)		(3,811	)		(1,312	)		(1,817	)		361			(627	)
Provision for credit losses			7,200			6,750			(31,559	)		(30,932	)		(7,454	)		(7,992	)		4,190			7,025
Balance at end of period		$	377,273		$	377,305		$	342,307		$	307,564		$	298,798		$	288,989		$	293,540		$	299,938
Allowance for loan losses		$	308,847		$	295,824		$	268,077		$	248,753		$	237,722		$	217,380		$	204,213		$	190,795
Reserve for losses on unfunded loan commitments			68,426			81,481			74,230			58,811			61,076			71,609			89,327			109,143
Total allowance for credit losses		$	377,273		$	377,305		$	342,307		$	307,564		$	298,798		$	288,989		$	293,540		$	299,938
Selected Ratios:
Net interest margin – FTE ⁽¹⁾			3.69	%		3.88	%		3.86	%		3.95	%		4.16	%		4.41	%		4.24	%		4.52	%
Efficiency ratio			41.77			38.61			39.57			38.43			40.14			37.06			38.22			37.25
Net charge-offs to average non-purchased loans ^{(1) (2)}			0.09			0.14			0.08			0.09			0.04			0.05			0.08			0.03
Net charge-offs to average total loans ⁽¹⁾			0.09			0.14			0.07			0.08			0.03			0.04			(0.01	)		0.01
Nonperforming loans to total loans ⁽³⁾			0.15			0.25			0.25			0.22			0.20			0.19			0.21			0.16
Nonperforming assets to total assets ⁽³⁾			0.17			0.21			0.19			0.18			0.17			0.15			0.16			0.12
Allowance for loan losses to total loans ⁽⁴⁾			1.60			1.54			1.43			1.36			1.30			1.19			1.08			1.02
Loans past due 30 days or more, including past due non-accrual loans, to total loans ⁽³⁾			0.13			0.16			0.13			0.10			0.13			0.15			0.14			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 Unaudited

	Three Months Ended June 30,														Six Months Ended June 30,
	2022							2021							2022							2021
	Average Balance		Income/ Expense		Yield/ Rate			Average Balance		Income/ Expense		Yield/ Rate			Average Balance		Income/ Expense		Yield/ Rate			Average Balance		Income/ Expense		Yield/ Rate
	(Dollars in thousands)

ASSETS
Interest earning assets:
Interest earning deposits and federal funds sold	$	1,019,374	$	1,856		0.73	%	$	1,886,166	$	496		0.11	%	$	1,188,502	$	2,465		0.42	%	$	2,048,521	$	1,033		0.10	%
Investment securities:
Taxable		3,060,097		10,367		1.36			3,508,655		9,467		1.08			3,218,475		20,978		1.31			2,968,393		17,550		1.19
Tax-exempt – FTE		637,235		5,088		3.20			963,522		4,915		2.05			604,295		8,868		2.96			1,065,110		9,574		1.81
Non-purchased loans – FTE		18,535,726		256,495		5.55			17,544,405		238,877		5.46			18,346,228		496,714		5.46			17,864,558		479,001		5.41
Purchased loans		464,655		8,982		7.75			697,136		11,699		6.73			481,941		17,152		7.18			736,399		23,635		6.47
Total earning assets – FTE		23,717,087		282,788		4.78			24,599,884		265,454		4.33			23,839,441		546,177		4.62			24,682,981		530,793		4.34
Non-interest earning assets		2,507,837							2,345,169							2,453,085							2,312,504
Total assets	$	26,224,924						$	26,945,053						$	26,292,526						$	26,995,485
LIABILITIES AND STOCKHOLDERS' EQUITY
Interest bearing liabilities:
Deposits:
Savings and interest bearing transaction	$	9,697,128	$	5,379		0.22	%	$	8,735,178	$	3,338		0.15	%	$	9,610,145	$	8,162		0.17	%	$	8,537,681	$	6,954		0.16	%
Time deposits		5,404,880		5,476		0.41			8,000,214		14,893		0.75			5,581,955		11,185		0.40			8,495,453		35,628		0.85
Total interest bearing deposits		15,102,008		10,855		0.29			16,735,392		18,231		0.44			15,192,100		19,347		0.26			17,033,134		42,582		0.50
Other borrowings

Bank OZK Announces Second Quarter 2022 Earnings