LITTLE ROCK, Ark., April 17, 2024 (GLOBE NEWSWIRE) -- Bank OZK (the "Bank") (NASDAQ:OZK) today announced that net income available to common stockholders for the first quarter of 2024 was a record $171.5 million, a 3.4% increase from $165.9 million for the first quarter of 2023. Diluted earnings per common share for the first quarter of 2024 were a record $1.51, a 7.1% increase from $1.41 for the first quarter of 2023. Pre-tax pre-provision net revenue ("PPNR") was a record $272.7 million for the first quarter of 2024, a 10.7% increase from $246.4 million for the first quarter of 2023. The calculation of PPNR and the reconciliation to generally accepted accounting principles ("GAAP") are included in the schedules accompanying this release. Provision for credit losses was $42.9 million for the first quarter of 2024 compared to $35.8 million for the first quarter of 2023. The Bank's total allowance for credit losses ("ACL") was $536.9 million at March 31, 2024 compared to $393.8 million at March 31, 2023. The Bank's annualized returns on average assets, average common stockholders' equity and average tangible common stockholders' equity for the first quarter of 2024 were 1.96%, 14.16% and 16.38%, respectively, compared to 2.41%, 15.24% and 17.94%, respectively, for the first quarter of 2023. The calculation of the Bank's returns on average common stockholders' equity and average tangible common stockholders' equity and the reconciliations to GAAP are included in the schedules accompanying this release. George Gleason, Chairman and Chief Executive Officer, stated, "Our record net income and record diluted earnings per share in the quarter just ended are an excellent start to 2024. We feel that we are well positioned for the year, and we look forward to capitalizing on new opportunities." KEY BALANCE SHEET METRICS Total loans were $28.03 billion at March 31, 2024, a 27.1% increase from $22.06 billion at March 31, 2023. Deposits were $29.41 billion at March 31, 2024, a 32.0% increase from $22.28 billion at March 31, 2023. Total assets were $36.03 billion at March 31, 2024, a 24.4% increase from $28.97 billion at March 31, 2023. Common stockholders' equity was $4.93 billion at March 31, 2024, an 11.4% increase from $4.42 billion at March 31, 2023. Tangible common stockholders' equity was $4.27 billion at March 31, 2024, a 13.5% increase from $3.76 billion at March 31, 2023. The Bank's ratio of total common stockholders' equity to total assets was 13.68% at March 31, 2024, compared to 15.27% at March 31, 2023. The Bank's ratio of total tangible common stockholders' equity to total tangible assets was 12.06% at March 31, 2024, compared to 13.28% at March 31, 2023. Book value per common share was $43.44 at March 31, 2024, a 13.0% increase from $38.43 at March 31, 2023. Tangible book value per common share was $37.62 at March 31, 2024, a 15.1% increase from $32.68 at March 31, 2023. The calculations of the Bank's total common stockholders' equity, tangible common stockholders' equity, ratio of total tangible common stockholders' equity to total tangible assets and tangible book value per common share, and the reconciliations to GAAP are included in the schedules accompanying this release. ASSET QUALITY The Bank's ratio of nonperforming non-purchased loans to total loans (excluding purchased loans) was 0.20% at March 31, 2024, compared to 0.15% as of March 31, 2023. The Bank's ratio of nonperforming assets to total assets (excluding purchased loans, except for their inclusion in total assets) was 0.33% at March 31, 2024, compared to 0.34% as of March 31, 2023. The Bank's annualized ratio of net charge-offs to average total loans was 0.11% for the quarter ended March 31, 2024, compared to 0.14% for the quarter ended March 31, 2023. MANAGEMENT'S COMMENTS, CONFERENCE CALL, TRANSCRIPT AND FILINGS In connection with this release, the Bank released management's comments on its quarterly results, which are available at http://ir.ozk.com. This release should be read in conjunction with management's comments on the quarterly results. Management will conduct a conference call to take questions at 9:00 a.m. CT (10:00 a.m. ET) on Thursday, April 18, 2024. Interested parties may access the conference call live via webcast on the Bank's investor relations website at https://ir.ozk.com/news/event-calendar, or may participate via telephone by registering using this online form. Upon registration, all telephone participants will receive the dial-in number along with a unique PIN number that can be used to access the call. A replay of the conference call webcast will be archived on the Bank's website for at least 30 days. The Bank files annual, quarterly and current reports, proxy materials, and other information required by the Securities Exchange Act of 1934 with the Federal Deposit Insurance Corporation ("FDIC"), copies of which are available electronically at the FDIC's website at https://efr.fdic.gov/fcxweb/efr/index.html and are also available on the Bank's investor relations website at ir.ozk.com. To receive automated email alerts for these materials please visit https://ir.ozk.com/other/email-alerts to sign up. NON-GAAP FINANCIAL MEASURES This release contains certain non-GAAP financial measures. The Bank uses these non-GAAP financial measures, specifically return on average common stockholders' equity, return on average tangible common stockholders' equity, tangible book value per common share, total common stockholders' equity, total tangible common stockholders' equity, the ratio of total tangible common stockholders' equity to total tangible assets, and PPNR, to assess the strength of its capital, its ability to generate earnings on tangible capital invested by its shareholders and trends in its net revenue. These measures typically adjust GAAP financial measures to exclude intangible assets or provision for credit losses. Management believes presentation of these non-GAAP financial measures provides useful supplemental information which contributes to a proper understanding of the financial results and capital levels of the Bank. These non-GAAP disclosures should not be viewed as a substitute for financial results determined in accordance with GAAP, and they are not necessarily comparable to non-GAAP performance measures that may be presented by other banks. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are included in the tables at the end of this release under the caption "Reconciliation of Non-GAAP Financial Measures." FORWARD-LOOKING STATEMENTS This press release and other communications by the Bank include certain "forward-looking statements" regarding the Bank's plans, expectations, thoughts, beliefs, estimates, goals and outlook for the future that are intended to be covered by the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on management's expectations as well as certain assumptions and estimates made by, and information available to, management at the time. Those statements are not guarantees of future results or performance and are subject to certain known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those expressed in, or implied by, such forward-looking statements. These risks, uncertainties and other factors include, but are not limited to: potential delays or other problems in implementing the Bank's growth, expansion and acquisition strategies, including obtaining regulatory or other approvals, delays in acquiring satisfactory sites, obtaining permits and designing, constructing and opening new offices, relocating, selling or closing existing offices, or integrating any acquisitions; the availability of and access to capital; possible downgrades in the Bank's credit ratings or outlook which could increase the costs of or decrease the availability of funding from capital markets; the ability to attract new or retain existing deposits or to retain or grow loans, including growth from unfunded closed loans; the ability to generate future revenue growth or to control future growth in non-interest expense; interest rate fluctuations, including changes in the yield curve between short-term and long-term interest rates or changes in the relative relationships of various interest rate indices; competitive factors and pricing pressures, including their effect on the Bank's net interest margin or core spread; general economic, unemployment, credit market and real estate market conditions, and the effect of such conditions on the creditworthiness of borrowers, collateral values, the value of investment securities and asset recovery values; conditions within the banking industry; recently enacted and potential new laws and regulatory requirements or changes to existing laws and regulatory requirements, including changes affecting oversight of the financial services industry, changes intended to manage or mitigate climate and related environmental risks or changes in the interpretation and enforcement of such laws and requirements, and the costs and expenses to comply with new and/or existing legislation and regulatory requirements; uncertainty regarding changes in U.S. government monetary and fiscal policy; the impact of any U.S. federal government shutdown or budgetary crisis; FDIC special assessments or changes to regular assessments; the ability to keep pace with technological changes, including changes regarding artificial intelligence and maintaining cybersecurity; the impact of any failure in, or breach of, our operational or security systems or infrastructure, or those of third parties with whom we do business or others, including as a result of cyberattacks or an increase in the incidence or severity of fraud, illegal payments, security breaches or other illegal acts impacting the Bank, its customers or others; natural disasters; acts of war or terrorism; the potential impact of continuing inflationary pressures; the potential impact of supply chain disruptions; national or international political instability or military conflict, including the conflict in the Middle East and the ongoing war in Ukraine; competition for and costs of recruiting and retaining qualified personnel; impairment of our goodwill; adoption of new accounting standards, or changes in existing standards; and adverse results (including costs, fines, reputational harm and/or other negative effects) from current or future litigation, regulatory examinations or other legal and/or regulatory actions or rulings as well as other factors identified in this communication or as detailed from time to time in our public filings, including those factors described in the disclosures under the headings "Forward-Looking Information" and "Item 1A. Risk Factors" in our most recent Annual Report on Form 10-K for the year ended December 31, 2023 and our quarterly reports on Form 10-Q. Should one or more of the foregoing risks materialize, or should underlying assumptions prove incorrect, actual results or outcomes may vary materially from those described in, or implied by, such forward-looking statements. The Bank disclaims any obligation to update or revise any forward-looking statements based on the occurrence of future events, the receipt of new information or otherwise. GENERAL INFORMATION Bank OZK (NASDAQ:OZK) is a regional bank providing innovative financial solutions delivered by expert bankers with a relentless pursuit of excellence. Established in 1903, Bank OZK conducts banking operations in approximately 240 offices in eight states including Arkansas, Georgia, Florida, North Carolina, Texas, New York, California and Mississippi and had $36.03 billion in total assets as of March 31, 2024. For more information, visit www.ozk.com.   Bank OZKConsolidated Balance SheetsUnaudited       March 31, 2024   December 31, 2023     (Dollars in thousands) ASSETS         Cash and cash equivalents   $ 2,323,813     $ 2,149,529   Investment securities – available for sale ("AFS")     3,072,391       3,244,371   Federal Home Loan Bank of Dallas ("FHLB") and other bankers' bank stocks     14,484       50,400   Non-purchased loans     27,781,091       26,195,030   Purchased loans     250,257       264,045   Allowance for loan losses     (365,935 )     (339,394 ) Net Loans     27,665,413       26,119,681   Premises and equipment, net     681,865       676,821   Foreclosed assets     60,782       61,720   Accrued interest receivable     175,201       170,110   Bank owned life insurance ("BOLI")     813,996       808,490   Goodwill     660,789       660,789   Other, net     561,170       295,546   Total assets   $ 36,029,904     $ 34,237,457             LIABILITIES AND STOCKHOLDERS' EQUITY         Deposits:         Demand non-interest bearing   $ 4,046,054     $ 4,095,874   Savings and interest bearing transaction     9,504,445       9,074,296   Time     15,855,571       14,234,973   Total deposits     29,406,070       27,405,143   Other borrowings     202,009       805,318   Subordinated notes     347,961       347,761   Subordinated debentures     121,652       121,652   Reserve for losses on unfunded loan commitments     170,952       161,834   Accrued interest payable and other liabilities     513,420       255,773   Total liabilities   $ 30,762,064     $ 29,097,481             Commitments and contingencies                   Stockholders' equity:         Preferred Stock: $0.01 par value; 100,000,000 shares authorized;14,000,000 issued and outstanding at March 31, 2024 and December 31, 2023     338,980       338,980   Common Stock: $0.01 par value; 300,000,000 shares authorized; 113,434,816 and 113,148,672 shares issued and outstanding at March 31, 2024 and December 31, 2023, respectively     1,134       1,131   Additional paid-in capital     1,609,268       1,612,446   Retained earnings     3,424,672       3,283,818   Accumulated other comprehensive loss     (107,207 )     (97,374 ) Total stockholders' equity before noncontrolling interest     5,266,847       5,139,001   Noncontrolling interest     993       975   Total stockholders' equity     5,267,840       5,139,976   Total liabilities and stockholders' equity   $ 36,029,904     $ 34,237,457     Bank OZKConsolidated Statements of IncomeUnaudited       Three Months Ended March 31,       2024       2023       (Dollars in thousands, except per share amounts) Interest income:         Non-purchased loans   $ 586,981     $ 414,896   Purchased loans     4,960       6,518   Investment securities:         Taxable     9,333       10,171   Tax-exempt     11,173       9,264   Deposits with banks     24,606       7,870   Total interest income     637,053       448,719             Interest expense:         Deposits     254,323       93,632   Other borrowings     750       5,422   Subordinated notes     2,574       2,574   Subordinated debentures     2,472       2,239   Total interest expense     260,119       103,867             Net interest income     376,934       344,852   Provision for credit losses     42,923       35,829   Net interest income after provision for credit losses     334,011       309,023             Non-interest income:         Service charges on deposit accounts:         NSF fees     —       991   Overdraft fees     3,427       3,287   All other service charges     6,839       6,502   Trust income     2,324       2,033   BOLI income     5,506       4,974   Loan service, maintenance and other fees     6,343       4,076   Gains on sales of other assets     459       343   Net gains on investment securities     410       1,716   Other     3,776       3,887   Total non-interest income     29,084       27,809             Non-interest expense:         Salaries and employee benefits     69,564       63,249   Net occupancy and equipment     17,974       17,870   Other operating expenses     45,776       45,098   Total non-interest expense     133,314       126,217             Income before taxes     229,781       210,615   Provision for income taxes     54,226       40,703   Net income     175,555       169,912   Earnings attributable to noncontrolling interest     (18 )     (12 ) Preferred stock dividends     4,047       4,047   Net income available to common stockholders   $ 171,490     $ 165,853             Basic earnings per common share   $ 1.51     $ 1.42             Diluted earnings per common share   $ 1.51     $ 1.41   Bank OZKConsolidated Statements of Stockholders' EquityUnaudited     Preferred Stock   Common Stock   AdditionalPaid-inCapital   Retained Earnings   Accumulated Other Comprehensive (Loss) Income   Non-Controlling Interest   Total     (Dollars in thousands, except per share amounts) Three months ended March 31, 2024:                             Balances - December 31, 2023   $ 338,980   $ 1,131     $ 1,612,446     $ 3,283,818     $ (97,374 )   $ 975   $ 5,139,976   Cumulative effect of change in accounting principle                 12,690               12,690   Balances - January 1, 2024     338,980     1,131       1,612,446       3,296,508       (97,374 )     975     5,152,666   Net income     —     —       —       175,555       —       —     175,555   Earnings attributable to noncontrolling interest     —     —       —       (18 )     —       18     —   Total other comprehensive loss     —     —       —       —       (9,833 )     —     (9,833 ) Preferred stock dividends, $0.28906 per share     —     —       —       (4,047 )     —       —     (4,047 ) Common stock dividends, $0.38 per share     —     —       —       (43,326 )     —       —     (43,326 ) Issuance of 484,818 shares of common stock pursuant to stock-based compensation plans     —     5       179       —       —       —     184   Repurchase and cancellation of 184,415 shares of common stock withheld for tax pursuant to stock-based compensation plans     —     (2 )     (8,008 )     —       —       —     (8,010 ) Stock-based compensation expense     —     —       4,651       —       —       —     4,651   Forfeitures of 14,259 shares of unvested restricted common stock     —     —       —       —       —       —     —   Balances - March 31, 2024   $ 338,980   $ 1,134     $ 1,609,268     $ 3,424,672     $ (107,207 )   $ 993   $ 5,267,840                                 Three months ended March 31, 2023:                             Balances - December 31, 2022   $ 338,980   $ 1,172     $ 1,753,941     $ 2,773,135     $ (177,649 )   $ 1,359   $ 4,690,938   Net income     —     —       —       169,912       —       —     169,912   Earnings attributable to noncontrolling interest     —     —       —       (12 )     —       12     —   Total other comprehensive income     —     —       —       —       35,972       —     35,972   Preferred stock dividends, $0.28906 per share     —     —       —       (4,047 )     —           (4,047 ) Common stock dividends, $0.34 per share     —     —       —       (40,084 )     —       —     (40,084 ) Issuance of 473,039 shares of common stock pursuant to stock-based compensation plans     —     5       518       —       —       —     523   Repurchase and cancellation of 2,348,138 shares of common stock under share repurchase program     —     (24 )     (85,315 )     —       —       —     (85,339 ) Repurchase and cancellation of 215,362 shares of common stock withheld for tax pursuant to stock-based compensation plans.     —     (2 )     (8,672 )     —       —       —     (8,674 ) Stock-based compensation expense     —     —       4,097       —       —       —     4,097   Forfeitures of 6,359 shares of unvested restricted common stock