Bank OZK Announces Record Fourth Quarter and Full Year 2021 Earnings

LITTLE ROCK, Arkansas, Jan. 20, 2022 (GLOBE NEWSWIRE) -- Bank OZK (the “Bank”) (Nasdaq: OZK) today announced that net income for the fourth quarter of 2021 was $149.8 million, a 24.3% increase from $120.5 million for the fourth quarter of 2020. Diluted earnings per common share for the fourth quarter of 2021 were a quarterly record $1.17, a 25.8% increase from $0.93 for the fourth quarter of 2020.

For the full year of 2021, net income was a record $579.0 million, a 98.4% increase from $291.9 million for the full year of 2020. Diluted earnings per common share for the full year of 2021 were a record $4.47, a 97.8% increase from $2.26 for the full year of 2020.

As a result of improved economic conditions and prospects for improvement in the U. S. economy, management recorded negative provision for credit losses of $8.0 million during the fourth quarter and $77.9 million for the full year of 2021, reducing the Bank’s total allowance for credit losses (“ACL”) from $377.3 million at December 31, 2020 to $289.0 million at December 31, 2021. The Bank’s provision for credit losses was $6.8 million during the fourth quarter and $203.6 million for the full year of 2020.

Pre-tax pre-provision net revenue (“PPNR”) was $186.0 million for the fourth quarter of 2021, a 14.2% increase from $162.9 million for the fourth quarter of 2020. PPNR was $675.0 million for the full year of 2021, a 16.4% increase from $579.8 million for the full year of 2020. 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 fourth quarter of 2021 were 2.25%, 13.08% and 15.34%, respectively, compared to 1.79%, 11.36% and 13.53%, respectively, for the fourth quarter of 2020. The Bank’s returns on average assets, average common stockholder’s equity and average tangible common stockholders’ equity for the full year of 2021 were 2.17%, 13.01% and 15.32%, respectively, compared to 1.13%, 7.04% and 8.41%, respectively, for the full year of 2020. 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 fourth quarter and full year of 2021 – results that were record setting in many respects. We were particularly pleased to report our highest ever level of quarterly RESG loan originations, as organic growth is an important component of our long-term strategy to increase shareholder value. 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 $18.31 billion at December 31, 2021, a 4.7% decrease from $19.21 billion at December 31, 2020. Non-purchased loans were $17.79 billion at December 31, 2021, a 3.3% decrease from $18.40 billion at December 31, 2020. Purchased loans, which consist of loans acquired in previous acquisitions, were $0.52 billion at December 31, 2021, a 36.1% decrease from $0.81 billion at December 31, 2020.

Deposits were $20.21 billion at December 31, 2021, a 5.8% decrease from $21.45 billion at December 31, 2020. Total assets were $26.53 billion at December 31, 2021, a 2.3% decrease from $27.16 billion at December 31, 2020.

Common stockholders’ equity was $4.50 billion at December 31, 2021, a 5.3% increase from $4.27 billion at December 31, 2020. Tangible common stockholders’ equity was $3.83 billion at December 31, 2021, a 6.4% increase from $3.60 billion at December 31, 2020. Book value per common share was $35.85 at December 31, 2021, an 8.5% increase from $33.03 at December 31, 2020. Tangible book value per common share was $30.52 at December 31, 2021, a 9.7% increase from $27.81 at December 31, 2020. 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 16.95% at December 31, 2021, compared to 15.73% at December 31, 2020. Its ratio of total tangible common stockholders’ equity to total tangible assets was 14.80% at December 31, 2021, compared to 13.58% at December 31, 2020. 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.

PREFERRED STOCK OFFERING

On November 4, 2021, the Bank completed its public offering of 14,000,000 shares of its 4.625% Series A Non-Cumulative Perpetual Preferred Stock (“Preferred Stock”), par value $0.01 per share, with a liquidation preference of $25 per share, which represents $350 million in aggregate liquidation preference. The Bank received net proceeds from the Preferred Stock, after deducting the initial purchaser discount and offering expenses, of $339.0 million.

SUBORDINATED DEBT REDEMPTION AND OFFERING

In July 2021, the Bank redeemed all of its $225 million of 5.50% Fixed-to-Floating rate Subordinated Notes at a redemption price equal to 100% of the principal amount of the subordinated notes plus accrued and unpaid interest. As a result of the subordinated debt redemption, the Bank recognized approximately $0.8 million in remaining unamortized debt issue cost as non-interest expense during the third quarter of 2021.

In September 2021, the Bank completed its public offering of $350 million in aggregate principal amount of its 2.75% Fixed-to-Floating rate Subordinated Notes (the “2.75% Notes”) due 2031, which bear interest at a fixed rate of 2.75% per annum until September 30, 2026. On October 1, 2026, the 2.75% Notes will bear interest at a floating rate equal to a benchmark (which is expected to be three-month SOFR) plus 209 basis points. The 2.75% Notes are unsecured, subordinated debt obligations and mature on October 1, 2031. As of December 31, 2021, the 2.75% Notes had a carrying value of $346.1 million and remaining unamortized debt issuance cost of $3.9 million.

STOCK REPURCHASE PROGRAM

In July 2021, the Bank adopted a stock repurchase program. In conjunction with the Bank’s Preferred Stock offering, its Board of Directors increased the size of its stock repurchase program from $300 million up to $650 million of the Bank’s outstanding common stock. During the quarter just ended, the Bank repurchased 3,387,421 shares at a weighted average cost of $46.16, for a total of $156.4 million. During 2021, the Bank repurchased 4,275,988 shares at a weighted average cost of $45.21, for a total of $193.4 million. The timing and amount of future repurchases will be determined by management based on a variety of factors such as the Bank’s capital position, liquidity, financial performance and alternative uses of capital, stock price, regulatory requirements and general market and economic conditions. The repurchase program may be suspended by the Bank 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 January 21, 2022. Interested parties may listen to this call by dialing 1-844-818-5110 (U.S. and Canada) or 210-229-8841 (internationally) and asking for the Bank OZK conference call. A recorded playback of the call will be available for one week following the call at 1-855-859-2056 (U.S. and Canada) or 404-537-3406 (internationally). The conference ID for this playback is 5324497. The call will be available live or in a recorded version on the Bank’s Investor Relations website at ir.ozk.com under “Company News/Webcasts.” The Bank will also provide a transcript of the conference call on its Investor Relations website.

The Bank files with the Federal Deposit Insurance Corporation (“FDIC”) annual, quarterly and current reports, proxy materials and other information required by the Securities Exchange Act of 1934, 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 http://ir.ozk.com. To receive automated email alerts for these materials, please visit http://ir.ozk.com/EmailNotification 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 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 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 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 phase-out of the London Interbank Offered Rate (“LIBOR”) or other changes involving LIBOR; 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 in response to the 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; the impact of any future federal government shutdown and uncertainty regarding the federal government’s debt limit or 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, the Bank’s operational or security systems or infrastructure, or those of third parties with whom it does 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 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 financial markets; potential impact of supply chain disruptions or inflation; national, international or political instability; impairment of the Bank’s 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 press release or as detailed from time to time in the other public reports the Bank files with the FDIC, including those factors described in the disclosures under the headings “Forward-Looking Information” and “Item 1A. Risk Factors” in the Bank’s most recent Annual Report on Form 10-K for the year ended December 31, 2020 and its 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 projected 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. Headquartered in Little Rock, Arkansas, Bank OZK conducts operations with over 240 offices in eight states including Arkansas, Georgia, Florida, North Carolina, Texas, California, New York and Mississippi. 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.

Investor Contact:		Tim Hicks (501) 978-2336
Media Contact:		Candace Graham (501) 320-4165

Bank OZK
Consolidated Balance Sheets
Unaudited

		December 31,
		2021				2020
		(Dollars in thousands, except per share amounts)
ASSETS
Cash and cash equivalents		$	2,053,829			$	2,393,662
Investment securities ― available for sale ("AFS")			3,916,733				3,405,351
Investment securities ― trading			14,957				—
Federal Home Loan Bank of Dallas and other bankers' bank stocks			40,788				38,486
Non-purchased loans			17,791,610				18,401,495
Purchased loans			516,215				807,673
Allowance for loan losses			(217,380	)			(295,824	)
Net loans			18,090,445				18,913,344
Premises and equipment, net			695,857				738,842
Foreclosed assets			5,744				11,085
Accrued interest receivable			83,025				88,077
Bank owned life insurance (“BOLI”)			774,822				758,071
Goodwill and other intangible assets, net			669,063				675,458
Other, net			185,167				140,220
Total assets		$	26,530,430			$	27,162,596
LIABILITIES AND STOCKHOLDERS’ EQUITY
Deposits:
Demand non-interest bearing		$	4,983,788			$	3,996,546
Savings and interest bearing transaction			9,245,727				8,160,982
Time			5,979,619				9,292,828
Total deposits			20,209,134				21,450,356
Repurchase agreements with customers			6,115				8,013
Other borrowings			750,206				750,928
Subordinated notes			346,133				224,047
Subordinated debentures			121,033				120,475
Reserve for losses on unfunded loan commitments			71,609				81,481
Accrued interest payable and other liabilities			186,840				251,940
Total liabilities			21,691,070				22,887,240
Commitments and contingencies
Stockholders’ equity:
Preferred stock; $0.01 par value; 100,000,000 shares authorized; 14,000,000 and no shares issued and outstanding at December 31, 2021 and 2020, respectively			338,980				—
Common stock; $0.01 par value; 300,000,000 shares authorized; 125,443,748 and 129,350,448 shares issued and outstanding at December 31, 2021 and 2020, respectively			1,254				1,294
Additional paid-in capital			2,093,702				2,265,850
Retained earnings			2,378,466				1,946,875
Accumulated other comprehensive income			23,841				58,252
Total stockholders’ equity before noncontrolling interest			4,836,243				4,272,271
Noncontrolling interest			3,117				3,085
Total stockholders’ equity			4,839,360				4,275,356
Total liabilities and stockholders’ equity		$	26,530,430			$	27,162,596

Bank OZK
Consolidated Statements of Income
Unaudited

	Three Months Ended December 31,								Year Ended December 31,
	2021				2020				2021				2020
	(Dollars in thousands, except per share amounts)
Interest income:
Non-purchased loans	$	256,021			$	243,064			$	972,660			$	944,354
Purchased loans		11,190				16,069				46,174				70,812
Investment securities:
Taxable		9,448				9,066				36,234				40,547
Tax-exempt		2,869				4,767				13,729				19,403
Deposits with banks and federal funds sold		953				428				2,510				5,665
Total interest income		280,481				273,394				1,071,307				1,080,781
Interest expense:
Deposits		9,514				30,607				64,422				171,813
Repurchase agreements with customers		3				6				17				23
Other borrowings		1,017				1,011				4,012				3,179
Subordinated notes		2,631				3,207				9,386				12,758
Subordinated debentures		935				963				3,750				4,384
Total interest expense		14,100				35,794				81,587				192,157
Net interest income		266,381				237,600				989,720				888,624
Provision for credit losses		(7,992	)			6,750				(77,938	)			203,639
Net interest income after provision for credit losses		274,373				230,850				1,067,658				684,985
Non-interest income:
Service charges on deposit accounts:
NSF/Overdraft fees		4,315				4,024				14,962				14,782
All other service charges		7,149				5,959				27,656				22,917
Trust income		2,141				1,909				8,506				7,544
BOLI income:
Increase in cash surrender value		4,901				5,034				19,640				20,239
Death benefits		618				—				2,028				608
Loan service, maintenance and other fees		3,148				3,797				13,959				14,257
Gains on sales of other assets		1,330				5,189				9,962				6,863
Net gains on investment securities		504				—				504				4,467
Other		5,589				2,749				18,321				12,931
Total non-interest income		29,695				28,661				115,538				104,608
Non-interest expense:
Salaries and employee benefits		55,034				53,832				214,567				206,834
Net occupancy and equipment		17,004				15,617				66,801				63,379
Other operating expenses		38,068				33,945				148,907				143,200
Total non-interest expense		110,106				103,394				430,275				413,413
Income before taxes		193,962				156,117				752,921				376,180
Provision for income taxes		44,197				35,607				173,888				84,314
Net income		149,765				120,510				579,033				291,866
Earnings attributable to noncontrolling interest		(5	)			3				(32	)			32
Net income available to common stockholders	$	149,760			$	120,513			$	579,001			$	291,898
Basic earnings per common share	$	1.17			$	0.93			$	4.49			$	2.26
Diluted earnings per common share	$	1.17			$	0.93			$	4.47			$	2.26

Bank OZK
Consolidated Statements of Stockholders’ Equity
Unaudited

		Preferred Stock				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 December 31, 2021:
Balances – September 30, 2021		$	—			$	1,288			$	2,245,012			$	2,266,234			$	40,706			$	3,112			$	4,556,352
Net income			—				—				—				149,765				—				—				149,765
Earnings attributable to noncontrolling interest			—				—				—				(5	)			—				5				—
Total other comprehensive loss			—				—				—				—				(16,865	)			—				(16,865	)
Common stock dividends, $0.29 per share			—				—				—				(37,528	)			—				—				(37,528	)
Issuance of 14,000,000 shares of preferred stock, net of offering costs			338,980				—				—				—				—				—				338,980
Issuance of 31,400 shares of common stock for exercise of stock options			—				—				1,131				—				—				—				1,131
Repurchase and cancellation of 3,387,421 shares of common stock under share repurchase program			—				(34	)			(156,410	)			—				—				—				(156,444	)
Stock-based compensation expense			—				—				3,969				—				—				—				3,969
Forfeitures of 18,050 shares of unvested restricted common stock			—				—				—				—				—				—				—
Balances – December 31, 2021		$	338,980			$	1,254			$	2,093,702			$	2,378,466			$	23,841			$	3,117			$	4,839,360
Year ended December 31, 2021:
Balances – December 31, 2020		$	—			$	1,294			$	2,265,850			$	1,946,875			$	58,252			$	3,085			$	4,275,356
Net income			—				—				—				579,033				—				—				579,033
Earnings attributable to noncontrolling interest			—				—				—				(32	)			—				32				—
Total other comprehensive loss			—				—				—				—				(34,411	)			—				(34,411	)
Common stock dividends, $1.1325 per share			—				—				—				(147,410	)			—				—				(147,410	)
Issuance of 14,000,000 shares of preferred stock, net of offering costs			338,980				—				—				—				—				—				338,980
Issuance of 207,650 shares of common stock for exercise of stock options			—				2				7,224				—				—				—				7,226
Issuance of 332,831 shares of unvested restricted common stock			—				3				(3	)			—				—				—				—
Repurchase and cancellation of 4,275,988 shares of common stock under share repurchase program			—				(43	)			(193,401	)			—				—				—				(193,444	)
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			—				—				16,007				—				—				—				16,007
Forfeitures of 115,300 shares of unvested restricted common stock			—				(1	)			1				—				—				—				—
Balances – December 31, 2021		$	338,980			$	1,254			$	2,093,702			$	2,378,466			$	23,841			$	3,117			$	4,839,360

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 December 31, 2020:
Balances – September 30, 2020		$	1,293			$	2,261,864			$	1,862,012			$	61,116			$	3,088			$	4,189,373
Net income			—				—				120,510				—				—				120,510
Earnings attributable to noncontrolling interest			—				—				3				—				(3	)			—
Total other comprehensive loss			—				—				—				(2,864	)			—				(2,864	)
Common stock dividends, $0.275 per share			—				—				(35,650	)			—				—				(35,650	)
Issuance of 39,900 shares of common stock for exercise of stock options			—				991				—				—				—				991
Stock-based compensation expense			—				2,996				—				—				—				2,996
Forfeitures of 31,525 shares of unvested restricted common stock			1				(1	)			—				—				—				—
Balances – December 31, 2020		$	1,294			$	2,265,850			$	1,946,875			$	58,252			$	3,085			$	4,275,356
Year ended December 31, 2020:
Balances – December 31, 2019		$	1,289			$	2,251,824			$	1,869,983			$	27,255			$	3,117			$	4,153,468
Cumulative effect of change in accounting principle			—				—				(75,344	)			—				—				(75,344	)
Balances – January 1, 2020			1,289				2,251,824				1,794,639				27,255				3,117				4,078,124
Net income			—				—				291,866				—				—				291,866
Earnings attributable to noncontrolling interest			—				—				32				—				(32	)			—
Total other comprehensive income			—				—				—				30,997				—				30,997
Common stock dividends, $1.0775 per share			—				—				(139,662	)			—				—				(139,662	)
Issuance of 44,200 shares of common stock for exercise of stock options			—				1,036				—				—				—				1,036
Issuance of 493,761 shares of unvested restricted common stock			5				(5	)			—				—				—				—
Repurchase and cancellation of 61,873 shares of common stock withheld for taxes pursuant to restricted stock vesting			(1	)			(1,852	)			—				—				—				(1,853	)
Stock-based compensation expense			—				14,848				—				—				—				14,848
Forfeitures of 76,664 shares of unvested restricted common stock			1				(1	)			—				—				—				—
Balances – December 31, 2020		$	1,294			$	2,265,850			$	1,946,875			$	58,252			$	3,085			$	4,275,356

Bank OZK
Summary of Non-Interest Expense
Unaudited

		Three Months Ended December 31,								Year Ended December 31,
		2021				2020				2021				2020
		(Dollars in thousands)
Salaries and employee benefits		$	55,034			$	53,832			$	214,567			$	206,834
Net occupancy and equipment			17,004				15,617				66,801				63,379
Other operating expenses:
Professional and outside services			7,880				6,988				29,013				29,605
Software and data processing			6,165				5,729				23,860				21,279
Deposit insurance and assessments			2,125				3,647				11,185				15,247
Telecommunication services			2,064				2,296				8,427				9,159
Postage and supplies			1,909				1,709				6,627				7,462
ATM expense			1,639				1,490				6,255				5,256
Travel and meals			1,883				835				5,694				4,336
Writedowns of foreclosed and other assets			985				1,582				3,461				3,669
Loan collection and repossession expense			587				481				2,044				3,062
Advertising and public relations			1,151				1,086				2,772				6,050
Amortization of intangibles			1,517				1,794				6,394				9,085
Amortization of CRA and tax credit investments			2,755				821				15,078				8,279
Other			7,408				5,487				28,097				20,711
Total non-interest expense		$	110,106			$	103,394			$	430,275			$	413,413

Bank OZK
Summary of Total Loans Outstanding
Unaudited

		December 31,
		2021								2020
		(Dollars in thousands)
Real estate:
Residential 1-4 family		$	887,024				4.8	%		$	911,115				4.7	%
Non-farm/non-residential			3,782,892				20.7				4,267,147				22.2
Construction/land development			8,246,674				45.0				7,993,467				41.6
Agricultural			247,727				1.4				204,868				1.1
Multifamily residential			934,845				5.1				856,297				4.5
Total real estate			14,099,162				77.0				14,232,894				74.1
Commercial and industrial			510,784				2.8				842,206				4.4
Consumer			2,185,429				11.9				2,393,964				12.5
Other			1,512,450				8.3				1,740,104				9.0
Total loans			18,307,825				100.0	%			19,209,168				100.0	%
Allowance for loan losses			(217,380	)							(295,824	)
Net loans		$	18,090,445							$	18,913,344

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 December 31, 2021:
Balances – September 30, 2021		$	237,722			$	61,076			$	298,798
Net charge-offs			(1,817	)			—				(1,817	)
Provision for credit losses			(18,525	)			10,533				(7,992	)
Balances – December 31, 2021		$	217,380			$	71,609			$	288,989
Year ended December 31, 2021:
Balances – December 31, 2020		$	295,824			$	81,481			$	377,305
Net charge-offs			(10,378	)			—				(10,378	)
Provision for credit losses			(68,066	)			(9,872	)			(77,938	)
Balances – December 31, 2021		$	217,380			$	71,609			$	288,989
Three months ended December 31, 2020:
Balances – September 30, 2020		$	308,847			$	68,426			$	377,273
Net charge-offs			(6,718	)			—				(6,718	)
Provision for credit losses			(6,305	)			13,055				6,750
Balances – December 31, 2020		$	295,824			$	81,481			$	377,305
Year ended December 31, 2020:
Balances – December 31, 2019		$	108,525			$	—			$	108,525
Adoption of CECL (1) methodology			39,588				54,924				94,512
Balances – January 1, 2020			148,113				54,924				203,037
Net charge-offs			(29,371	)			—				(29,371	)
Provision for credit losses			177,082				26,557				203,639
Balances – December 31, 2020		$	295,824			$	81,481			$	377,305

(1) Current Expected Credit Loss.

Bank OZK
Summary of Deposits – By Account Type
Unaudited

		December 31,
		2021								2020
		(Dollars in thousands)
Non-interest bearing		$	4,983,788				24.7	%		$	3,996,546				18.6	%
Interest bearing:
Transaction (NOW)			3,412,369				16.9				3,124,007				14.6
Savings and money market			5,833,358				28.9				5,036,975				23.5
Time deposits less than $100			1,801,454				8.9				3,075,845				14.3
Time deposits of $100 or more			4,178,165				20.6				6,216,983				29.0
Total deposits		$	20,209,134				100.0	%		$	21,450,356				100.0	%

Summary of Deposits – By Customer Type
Unaudited

		December 31,
		2021								2020
		(Dollars in thousands)
Non-Interest Bearing		$	4,983,788				24.7	%		$	3,996,546				18.6	%
Interest Bearing:
Consumer and Commercial:
Consumer – Non-Time			4,334,378				21.4				3,506,014				16.3
Consumer – Time			4,318,742				21.4				6,511,664				30.4
Commercial – Non-Time			2,634,817				13.0				2,178,253				10.2
Commercial – Time			905,347				4.5				1,137,040				5.3
Public Funds			2,094,800				10.4				2,004,593				9.3
Brokered			452,137				2.2				1,600,116				7.5
Reciprocal			485,125				2.4				516,130				2.4
Total deposits		$	20,209,134				100.0	%		$	21,450,356				100.0	%

Bank OZK
Selected Consolidated Financial Data
Unaudited

		Three Months Ended December 31,												Year Ended December 31,
		2021				2020				% Change				2021				2020				% Change
		(Dollars in thousands, except per share amounts)
Income statement data:
Net interest income		$	266,381			$	237,600				12.1	%		$	989,720			$	888,624				11.4	%
Provision for credit losses			(7,992	)			6,750				(218.4	)			(77,938	)			203,639				(138.3	)
Non-interest income			29,695				28,661				3.6				115,538				104,608				10.4
Non-interest expense			110,106				103,394				6.5				430,275				413,413				4.1
Net income available to common stockholders			149,760				120,513				24.3				579,001				291,898				98.4
Pre-tax pre-provision net revenue (1)			185,970				162,867				14.2				674,983				579,819				16.4
Common share and per common share data:
Net income per share − diluted		$	1.17			$	0.93				25.8	%		$	4.47			$	2.26				97.8	%
Net income per share − basic			1.17				0.93				25.8				4.49				2.26				98.7
Dividends per share			0.29				0.275				5.5				1.1325				1.0775				5.1
Book value per share			35.85				33.03				8.5				35.85				33.03				8.5
Tangible book value per share (1)			30.52				27.81				9.7				30.52				27.81				9.7
Weighted-average diluted shares outstanding (thousands)			128,246				129,523				(1.0	)			129,618				129,435				0.1
End of period shares outstanding (thousands)			125,444				129,350				(3.0	)			125,444				129,350				(3.0	)
Balance sheet data at period end:
Total assets		$	26,530,430			$	27,162,596				(2.3	)%		$	26,530,430			$	27,162,596				(2.3	)%
Total loans			18,307,825				19,209,168				(4.7	)			18,307,825				19,209,168				(4.7	)
Non-purchased loans			17,791,610				18,401,495				(3.3	)			17,791,610				18,401,495				(3.3	)
Purchased loans			516,215				807,673				(36.1	)			516,215				807,673				(36.1	)
Allowance for loan losses			217,380				295,824				(26.5	)			217,380				295,824				(26.5	)
Foreclosed assets			5,744				11,085				(48.2	)			5,744				11,085				(48.2	)
Investment securities − AFS			3,916,733				3,405,351				15.0				3,916,733				3,405,351				15.0
Goodwill and other intangible assets, net			669,063				675,458				(0.9	)			669,063				675,458				(0.9	)
Deposits			20,209,134				21,450,356				(5.8	)			20,209,134				21,450,356				(5.8	)
Other borrowings			750,206				750,928				(0.1	)			750,206				750,928				(0.1	)
Subordinated notes			346,133				224,047				54.5				346,133				224,047				54.5
Subordinated debentures			121,033				120,475				0.5				121,033				120,475				0.5
Unfunded balance of closed loans			13,619,578				11,847,117				15.0				13,619,578				11,847,117				15.0
Reserve for losses on unfunded loan commitments			71,609				81,481				(12.11	)			71,609				81,481				(12.11	)
Preferred stock			338,980				—			NM					338,980				—			NM
Total common stockholders’ equity (1)			4,497,263				4,272,271				5.3				4,497,263				4,272,271				5.3
Net unrealized gains on investment securities AFS included in stockholders’ equity			23,841				58,252								23,841				58,252
Loan (including purchased loans) to deposit ratio			90.59	%			89.55	%							90.59	%			89.55	%
Selected ratios:
Return on average assets (2)			2.25	%			1.79	%							2.17	%			1.13	%
Return on average common stockholders’ equity (1) (2)			13.08				11.36								13.01				7.04
Return on average tangible common stockholders’ equity (1) (2)			15.34				13.53								15.32				8.41
Net interest margin – FTE (2)			4.41				3.88								4.09				3.81
Efficiency ratio			37.06				38.61								38.76				41.37
Net charge-offs to average non-purchased loans (2) (3)			0.05				0.14							0.06