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Bank OZK Announces Fourth Quarter and Record Full Year 2019 Earnings

LITTLE ROCK, Ark., Jan. 16, 2020 (GLOBE NEWSWIRE) -- Bank OZK (the “Bank”) (OZK) today announced that net income for the fourth quarter of 2019 was $100.8 million, a 12.4% decrease from $115.0 million for the fourth quarter of 2018.  Diluted earnings per common share for the fourth quarter of 2019 were $0.78, a 12.4% decrease from $0.89 for the fourth quarter of 2018.

For the full year of 2019, net income was $425.9 million, a 2.1% increase from $417.1 million for the full year of 2018.  Diluted earnings per common share for the full year of 2019 were $3.30, a 1.9% increase from $3.24 for the full year of 2018.

The Bank’s annualized returns on average assets, average common stockholders’ equity and average tangible common stockholders’ equity for the fourth quarter of 2019 were 1.74%, 9.73% and 11.68%, respectively, compared to 2.04%, 12.36% and 15.24%, respectively, for the fourth quarter of 2018.  The Bank’s returns on average assets, average common stockholders’ equity and average tangible common stockholders’ equity for the full year of 2019 were 1.87%, 10.72% and 12.98%, respectively, compared to 1.90%, 11.59% and 14.41%, respectively, for the full year of 2018.  The calculation of the Bank’s return on average tangible common stockholders’ equity and the reconciliation to generally accepted accounting principles (“GAAP”) are included in the schedules accompanying this release.

“We are very pleased to have achieved record net income of $425.9 million in 2019 and a 1.87% return on average assets,” stated George Gleason, Chairman and Chief Executive Officer.  “Our strong credit culture and consistent discipline have been important ingredients in our long term success, and we are not wavering from those principles in today’s challenging competitive and interest rate environment.  We believe our competitive advantages will allow us to capitalize on opportunities throughout 2020 and beyond.”

KEY BALANCE SHEET METRICS

Total loans, including purchased loans, were $17.53 billion at December 31, 2019, a 2.4% increase from $17.12 billion at December 31, 2018.  Non-purchased loans, which exclude loans acquired in previous acquisitions, were $16.22 billion at December 31, 2019, a 7.6% increase from $15.07 billion at December 31, 2018, but a 0.5% decrease from $16.31 billion at September 30, 2019.  Purchased loans, which consist of loans acquired in previous acquisitions, were $1.31 billion at December 31, 2019, a 36.0% decrease from $2.04 billion at December 31, 2018.  The unfunded balance of closed loans totaled $11.33 billion at December 31, 2019, a 0.3% decrease from $11.36 billion at December 31, 2018.

Deposits were $18.47 billion at December 31, 2019, a 3.0% increase from $17.94 billion at December 31, 2018.  Total assets were $23.56 billion at December 31, 2019, a 5.2% increase from $22.39 billion at December 31, 2018.

Common stockholders’ equity was $4.15 billion at December 31, 2019, a 10.1% increase from $3.77 billion at December 31, 2018.  Tangible common stockholders’ equity was $3.47 billion at December 31, 2019, a 12.8% increase from $3.07 billion at December 31, 2018.  Book value per common share was $32.19 at December 31, 2019, a 9.8% increase from $29.32 at December 31, 2018.  Tangible book value per common share was $26.88 at December 31, 2019, a 12.5% increase from $23.90 at December 31, 2018.  The calculations of the Bank’s 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 17.62% at December 31, 2019 compared to 16.84% at December 31, 2018.  Its ratio of total tangible common stockholders’ equity to total tangible assets was 15.15% at December 31, 2019 compared to 14.17% at December 31, 2018.  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. 

MANAGEMENT’S COMMENTS, CONFERENCE CALL, TRANSCRIPT AND FILINGS

In connection with this release, the Bank released management’s comments on its quarterly and year-end results, which are available at http://ir.ozk.com.  This release should be read in conjunction with management’s comments on the quarterly and year-end results.

Management will conduct a conference call to take questions on these quarterly and year-end results and management’s comments at 10:00 a.m. CT (11:00 a.m. ET) on January 17, 2020.  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 passcode for this playback is 2495839.  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 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 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 tangible common stockholders’ equity and the ratio of total tangible common stockholders’ equity to total tangible assets, as important measures of the strength of its capital and its ability to generate earnings on its tangible capital invested by its shareholders. These measures typically adjust GAAP financial measures to exclude intangible assets.  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, nor are they 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 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 or 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 change in the method for determining 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; 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; international or political instability; impairment of our goodwill or other intangible assets; adoption of new accounting standards, including the estimated effects from the adoption of the current expected credit loss (“CECL”) model on January 1, 2020, 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, 2018 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 (OZK) is a regional bank providing innovative financial solutions delivered by expert bankers with a relentless pursuit of excellence. Bank OZK has been recognized as the top performing bank in the nation in its asset size 13 times in the past eight years and in 2019 was named Best Bank in the South by Money, the personal finance news and advice brand. Headquartered in Little Rock, Arkansas, Bank OZK conducts operations through more than 250 offices in Arkansas, Georgia, Florida, North Carolina, Texas, Alabama, South Carolina, 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.

       
Bank OZK
Consolidated Balance Sheets

Unaudited
       
    December 31,  
    2019     2018  
       
    (Dollars in thousands, except per share amounts)  
ASSETS                
Cash and cash equivalents   $ 1,495,757     $ 290,672  
Investment securities - available for sale ("AFS")     2,277,389       2,862,340  
Federal Home Loan Bank of Dallas and other banker's bank stocks     21,855       25,941  
Non-purchased loans     16,224,539       15,073,791  
Purchased loans     1,307,504       2,044,032  
Allowance for loan losses     (108,525 )     (102,264 )
Net loans     17,423,518       17,015,559  
Premises and equipment, net     711,541       567,189  
Foreclosed assets     19,096       16,171  
Accrued interest receivable     75,208       81,968  
Bank owned life insurance (“BOLI”)     738,860       721,238  
Goodwill and intangible assets, net     684,542       696,461  
Other, net     111,634       110,491  
Total assets   $ 23,559,400     $ 22,388,030  
                 
LIABILITIES AND STOCKHOLDERS EQUITY                
Deposits:                
Demand non-interest bearing   $ 2,795,251     $ 2,748,273  
Savings and interest bearing transaction     8,307,607       9,682,713  
Time     7,371,401       5,507,429  
Total deposits     18,474,259       17,938,415  
Repurchase agreements with customers     11,249       20,564  
Other borrowings     351,387       96,692  
Subordinated notes     223,663       223,281  
Subordinated debentures     119,916       119,358  
Accrued interest payable and other liabilities     225,458       216,355  
Total liabilities     19,405,932       18,614,665  
                 
Commitments and contingencies                
                 
Stockholders’ equity:                
Preferred stock; $0.01 par value; 100,000,000 shares authorized; no shares issued or outstanding at December 31, 2019 or 2018            
Common stock; $0.01 par value; 300,000,000 shares authorized; 128,951,024 and 128,611,049 shares issued and outstanding at December 31, 2019 and 2018, respectively     1,289       1,286  
Additional paid-in capital     2,251,824       2,237,948  
Retained earnings     1,869,983       1,565,201  
Accumulated other comprehensive income (loss)     27,255       (34,105 )
Total stockholders’ equity before noncontrolling interest     4,150,351       3,770,330  
Noncontrolling interest     3,117       3,035  
Total stockholders’ equity     4,153,468       3,773,365  
Total liabilities and stockholders’ equity   $ 23,559,400     $ 22,388,030  


           
Bank OZK
Consolidated Statements of Income
Unaudited
           
   Three Months Ended
December 31,
    Year Ended
December 31,
 
  2019     2018     2019     2018  
     
  (Dollars in thousands, except per share amounts)  
Interest income:                              
Non-purchased loans $ 240,912     $ 237,443     $ 981,811     $ 858,102  
Purchased loans   22,152       35,453       106,908       173,465  
Investment securities:                              
Taxable   11,820       14,642       52,812       50,021  
Tax-exempt   3,323       3,941       14,252       16,193  
Deposits with banks and federal funds sold   2,756       590       6,758       3,039  
Total interest income   280,963       292,069       1,162,541       1,100,820  
                               
Interest expense:                              
Deposits   61,631       56,608       258,358       186,617  
Repurchase agreements with customers   11       26       50       785  
Other borrowings   34       2,193       1,531       3,017  
Subordinated notes   3,216       3,216       12,757       12,757  
Subordinated debentures   1,094       1,644       5,664       6,211  
Total interest expense   65,986       63,687       278,360       209,387  
                               
Net interest income   214,977       228,382       884,181       891,433  
Provision for loan losses   4,938       7,271       26,241       64,398  
Net interest income after provision for loan losses   210,039       221,111       857,940       827,035  
                               
Non-interest income:                              
Service charges on deposit accounts   10,933       10,585       41,774       39,544  
Trust income   2,010       1,821       7,554       6,935  
BOLI income:                              
  Increase in cash surrender value   5,167       5,269       20,715       20,700  
  Death benefits   2,989       482       3,194       3,211  
Other income from purchased loans   759       2,370       3,684       7,784  
Loan service, maintenance and other fees   4,282       5,245       17,917       20,354  
Gains on sales of other assets   1,358       465       2,233       2,219  
Net gains on investment securities               713       17  
Other   2,908       1,323       9,743       7,011  
Total non-interest income   30,406       27,560       107,527       107,775  
                               
Non-interest expense:                              
Salaries and employee benefits   52,050       41,837       192,851       170,478  
Net occupancy and equipment   14,855       14,027       59,018       56,362  
Other operating expenses   37,501       39,029       149,261       153,912  
Total non-interest expense   104,406       94,893       401,130       380,752  
                               
Income before taxes   136,039       153,778       564,337       554,058  
Provision for income taxes   35,240       38,750       138,429       136,977  
Net income   100,799       115,028       425,908       417,081  
Earnings attributable to noncontrolling interest   7       3       (2 )     25  
Net income available to common stockholders $ 100,806     $ 115,031     $ 425,906     $ 417,106  
                               
Basic earnings per common share $ 0.78     $ 0.89     $ 3.30     $ 3.24  
                               
Diluted earnings per common share $ 0.78     $ 0.89     $ 3.30     $ 3.24  


                                     
Bank OZK
Consolidated Statements of Stockholders’ Equity
Unaudited
                                     
    Common
Stock
    Additional
Paid-In
Capital
    Retained
Earnings
    Accumulated
Other
Comprehensive
Income (Loss)
    Non-
Controlling
Interest
    Total  
       
    (Dollars in thousands, except per share amounts)  
                                                 
Three months ended December 31, 2019:                                                
Balances – September 30, 2019   $ 1,289     $ 2,247,973     $ 1,801,414     $ 27,648     $ 3,124     $ 4,081,448  
Net income                 100,799                   100,799  
Earnings attributable to noncontrolling interest                 7             (7 )      
Total other comprehensive loss                       (393 )           (393 )
Common stock dividends paid, $0.25 per share                 (32,237 )                 (32,237 )
Issuance of 16,150 shares of common stock for exercise of stock options           266                         266  
Stock-based compensation expense           3,585                         3,585  
Forfeitures of 11,485 shares of unvested restricted common stock                                    
Balances – December 31, 2019   $ 1,289     $ 2,251,824     $ 1,869,983     $ 27,255     $ 3,117     $ 4,153,468  
                                                 
Twelve months ended December 31, 2019:                                                
Balances – December 31, 2018   $ 1,286     $ 2,237,948     $ 1,565,201     $ (34,105 )   $ 3,035     $ 3,773,365  
Net income                 425,908                   425,908  
Earnings attributable to noncontrolling interest                 (2 )           2        
Total other comprehensive income                       61,360             61,360  
Common stock dividends paid, $0.94 per share                 (121,124 )                 (121,124 )
Noncontrolling interest cash contribution                             80       80  
Issuance of 83,500 shares of common stock for exercise of stock options     1       1,384                         1,385  
Issuance of 406,074 shares of unvested restricted common stock     4       (4 )                        
Repurchase and cancellation of 63,716 shares of common stock     (1 )     (1,674 )                       (1,675 )
Stock-based compensation expense           14,169                         14,169  
Forfeiture of 85,883 shares of unvested restricted common stock     (1 )     1                          
Balances – December 31, 2019   $ 1,289     $ 2,251,824     $ 1,869,983     $ 27,255     $ 3,117     $ 4,153,468  


                                     
Bank OZK
Consolidated Statements of Stockholders’ Equity (continued)
Unaudited
                                     
    Common
Stock
    Additional
Paid-In
Capital
    Retained
Earnings
    Accumulated
Other
Comprehensive
Loss
    Non-
Controlling
Interest
    Total  
       
    (Dollars in thousands, except per share amounts)  
Three months ended December 31, 2018:                                                
Balances – September 30, 2018   $ 1,286     $ 2,234,383     $ 1,477,178     $ (59,251 )   $ 3,038     $ 3,656,634  
Net income                 115,028                   115,028  
Earnings attributable to noncontrolling interest                 3             (3 )      
Total other comprehensive income                       25,146             25,146  
Common stock dividends paid, $0.21 per share                 (27,008 )                 (27,008 )
Issuance of 6,850 shares of common stock for exercise of stock options           63                         63  
Issuance of 224 shares of unvested restricted common stock                                    
Stock-based compensation expense           3,502                         3,502  
Forfeiture of 5,262 shares of unvested restricted common stock                                    
Balances – December 31, 2018   $ 1,286     $ 2,237,948     $ 1,565,201     $ (34,105 )   $ 3,035     $ 3,773,365  
                                                 
Twelve months ended December 31, 2018:                                                
Balances – December 31, 2017   $ 1,283     $ 2,221,844     $ 1,250,313     $ (12,712 )   $ 3,060     $ 3,463,788  
Net income                 417,081                   417,081  
Earnings attributable to noncontrolling interest                 25             (25 )      
Total other comprehensive loss                       (21,393 )           (21,393 )
Common stock dividends paid, $0.795 per share                 (102,218 )                 (102,218 )
Issuance of 223,840 shares of common stock for exercise of stock options     2       5,740                         5,742  
Issuance of 220,326 shares of unvested restricted common stock     2       (2 )                        
Repurchase and cancellation of 71,750 shares of common stock     (1 )     (3,769 )                       (3,770 )
Stock-based compensation expense           14,135                         14,135  
Forfeitures of 48,917 shares of unvested restricted common stock                                    
Balances – December 31, 2018   $ 1,286     $ 2,237,948     $ 1,565,201     $ (34,105 )   $ 3,035     $ 3,773,365  


             
Bank OZK
Summary of Non-Interest Expense
Unaudited
             
    Three Months Ended
December 31,
    Year Ended
December 31,
 
    2019     2018     2019     2018  
       
    (Dollars in thousands)  
Salaries and employee benefits   $ 52,050     $ 41,837     $ 192,851     $ 170,478  
Net occupancy and equipment     14,855       14,027       59,018       56,362  
Other operating expenses:                                
Professional and outside services     7,156       8,325       33,030       35,867  
Software and data processing     4,974       3,943       19,535       13,729  
Deposit insurance and assessments     3,780       3,672       13,425       14,740  
Travel and meals     2,845       2,482       11,230       9,650  
Telecommunication services     2,335       3,023       10,583       13,080  
Postage and supplies     2,483       2,214       8,684       9,144  
Advertising and public relations     1,822       1,472       7,242       11,557  
ATM expense     1,263       544       4,626       4,227  
Loan collection and repossession expense     600       1,077       2,818       3,302  
Writedowns of foreclosed assets     910       1,841       2,419       2,996  
Writedown of signage due to strategic rebranding                       4,915  
Amortization of intangibles     2,854       3,144       11,918       12,579  
Other     6,479       7,292       23,751       18,126  
Total non-interest expense   $ 104,406     $ 94,893     $ 401,130     $ 380,752  


       
Bank OZK
Summary of Total Loans Outstanding
Unaudited
       
    December 31,  
    2019     2018  
       
    (Dollars in thousands)  
Real estate:                            
Residential 1-4 family   $ 998,632     5.7 %   $ 1,049,460     6.1 %
Non-farm/non-residential     3,956,579     22.6       4,319,388     25.2  
Construction/land development     6,391,429     36.4       6,562,185     38.4  
Agricultural     230,076     1.3       165,088     1.0  
Multifamily residential     1,194,192     6.8       1,116,026     6.5  
Total real estate     12,770,908     72.8       13,212,147     77.2  
Commercial and industrial     661,952     3.8       823,417     4.8  
Consumer     2,934,534     16.8       2,345,863     13.7  
Other     1,164,649     6.6       736,396     4.3  
Total loans     17,532,043     100.0 %     17,117,823     100.0 %
Allowance for loan losses     (108,525 )           (102,264 )      
Net loans   $ 17,423,518           $ 17,015,559        


Summary of Deposits
Unaudited
 
       
    December 31,  
    2019     2018  
       
    (Dollars in thousands)  
Non-interest bearing   $ 2,795,251     15.1 %   $ 2,748,273     15.3 %
Interest bearing:                            
Transaction (NOW)     2,706,426     14.7       2,359,299     13.2  
Savings and money market     5,601,181     30.3       7,323,414     40.8  
Time deposits less than $100     3,321,446     18.0       2,297,101     12.8  
Time deposits of $100 or more     4,049,955     21.9       3,210,328     17.9  
Total deposits   $ 18,474,259     100.0 %   $ 17,938,415     100.0 %


             
Bank OZK
Selected Consolidated Financial Data
Unaudited
             
    Three Months Ended
December 31,
    Year Ended
December 31,
 
    2019     2018     % Change     2019     2018     % Change  
       
    (Dollars in thousands, except per share amounts)  
Income statement data:                                                
Net interest income   $ 214,977     $ 228,382       (5.9 )%   $ 884,181     $ 891,433       (0.8 )%
Provision for loan losses     4,938       7,271       (32.1 )     26,241       64,398       (59.3 )
Non-interest income     30,406       27,560       10.3       107,527       107,775       (0.2 )
Non-interest expense     104,406       94,893       10.0       401,130       380,752       5.4  
Net income available to common stockholders     100,806       115,031       (12.4 )     425,906       417,106       2.1  
Common stock data:                                                
Net income per share - diluted   $ 0.78     $ 0.89       (12.4 )%   $ 3.30     $ 3.24       1.9 %
Net income per share - basic     0.78       0.89       (12.4 )     3.30       3.24       1.9  
Cash dividends per share     0.25       0.21       19.0       0.94       0.795       18.2  
Book value per share     32.19       29.32       9.8       32.19       29.32       9.8  
Tangible book value per share(1)     26.88       23.90       12.5       26.88       23.90       12.5  
Diluted shares outstanding (thousands)     129,036       128,666               129,006       128,740          
End of period shares outstanding (thousands)     128,951       128,611               128,951       128,611          
Balance sheet data at period end:                                                
Total assets   $ 23,559,400     $ 22,388,030       5.2 %   $ 23,559,400     $ 22,388,030       5.2 %
Total loans     17,532,043       17,117,823       2.4       17,532,043       17,117,823       2.4  
Non-purchased loans     16,224,539       15,073,791       7.6       16,224,539       15,073,791       7.6  
Purchased loans     1,307,504       2,044,032       (36.0 )     1,307,504       2,044,032       (36.0 )
Allowance for loan losses     108,525       102,264       6.1       108,525       102,264       6.1  
Foreclosed assets     19,096       16,171       18.1       19,096       16,171       18.1  
Investment securities - AFS     2,277,389       2,862,340       (20.4 )     2,277,389       2,862,340       (20.4 )
Goodwill and other intangible assets, net     684,542       696,461       (1.7 )     684,542       696,461       (1.7 )
Deposits     18,474,259       17,938,415       3.0       18,474,259       17,938,415       3.0  
Repurchase agreements with customers     11,249       20,564       (45.3 )     11,249       20,564       (45.3 )
Other borrowings     351,387       96,692       263.4       351,387       96,692       263.4  
Subordinated notes     223,663       223,281       0.2       223,663       223,281       0.2  
Subordinated debentures     119,916       119,358       0.5       119,916       119,358       0.5  
Unfunded balance of closed loans     11,325,598       11,364,975       (0.3 )     11,325,598       11,364,975       (0.3 )
Total common stockholders’ equity     4,150,351       3,770,330       10.1       4,150,351       3,770,330       10.1  
Net unrealized gains (losses) on investment securities AFS included in common stockholders' equity     27,255       (34,105 )             27,255       (34,105 )        
Loan (including purchased loans) to deposit ratio     94.90 %     95.43 %             94.90 %     95.43 %        
Selected ratios:                                                
Return on average assets(2)     1.74 %     2.04 %             1.87 %     1.90 %        
Return on average common stockholders’ equity(2)     9.73       12.36               10.72       11.59          
Return on average tangible common stockholders’ equity(1) (2)     11.68       15.24               12.98       14.41          
Average common equity to total average assets     17.86       16.54               17.45       16.42          
Net interest margin – FTE(2)     4.15       4.55               4.34       4.59          
Efficiency ratio     42.37       36.90               40.27       37.93          
Net charge-offs to average non-purchased loans(2) (3)     0.10       0.06               0.09       0.38          
Net charge-offs to average total loans(2)     0.12       0.07               0.11       0.34          
Nonperforming loans to total loans(4)     0.15       0.23               0.15       0.23          
Nonperforming assets to total assets(4)     0.18       0.23               0.18       0.23          
Allowance for loan losses to non-purchased loans(5)     0.66       0.67             0.66     0.67          
Other information:                                                
Non-accrual loans(4)   $ 23,221     $ 34,762             $ 23,221     $ 34,762          
Accruing loans - 90 days past due(4)                                        
Troubled and restructured non-purchased loans - accruing(4)     656       627               656       627          
Impaired purchased loans     10,910       7,801               10,910       7,801          
                                                 
(1)Calculations of tangible book value per common share and return on 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 purchased loans and any allowance for such loans.


...
               
Bank OZK
Selected Consolidated Financial Data (continued)
Unaudited
               
    Three Months Ended          
    December 31,     September 30,          
    2019     2019     % Change  
     
  (Dollars in thousands, except per share amounts)  
Income statement data:                        
Net interest income   $ 214,997     $ 218,780       (1.7 )%
Provision for loan losses     4,938       7,854       (37.1 )
Non-interest income     30,406       26,446       15.0  
Non-interest expense     104,406       100,914       3.5