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

Unaudited

	September 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, 2021		338,980			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, respectively		1,178			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

Unaudited

	Three 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

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 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

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 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 options		1			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 options		2			6,092			—			—			—			6,094
Issuance of 332,831 shares of unvested restricted common stock		3			(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

Unaudited

	Three 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

Unaudited


	September 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

Unaudited


	Allowance 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

Unaudited


	September 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

Unaudited


	September 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

Unaudited

	Three 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 meaningful

Selected Consolidated Financial Data (continued)

Unaudited

		Three 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

Bank OZK

Supplemental Quarterly Financial Data

Unaudited

		12/31/20			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)

Unaudited

		12/31/20			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

Unaudited

	Three Months Ended September 30,														Nine Months Ended September 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	$	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 interest		4,635,887							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 Measures

Calculation of Average Common Stockholders' Equity,

Average Tangible Common Stockholders' Equity

and the Annualized Returns on Average Common Stockholders' Equity and

Average Tangible Common Stockholders' Equity

Unaudited

	Three Months Ended									Nine Months Ended
	September 30, 2022			September 30, 2021			June 30, 2022			September 30, 2022			September 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' equity		4,296,907			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

Unaudited

	September 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

Unaudited

	September 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 assets		13.83	%		15.24	%

Calculation of Pre-Tax Pre-Provision Net Revenue

Unaudited

	Three Months Ended							Nine Months Ended
	September 30, 2022		September 30, 2021			June 30, 2022		September 30, 2022		September 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

Bank OZK Announces Third Quarter 2022 Earnings