Bank OZK Announces Record Fourth Quarter and Full Year 2023 Earnings
For the full year of 2023, net income available to common stockholders was
Pre-tax pre-provision net revenue (“PPNR”) was
The Bank’s annualized returns on average assets, average common stockholders’ equity and average tangible common stockholders’ equity for the fourth quarter of 2023 were 2.04%, 14.58% and 16.99%, respectively, compared to 2.35%, 14.76% and 17.48%, respectively, for the fourth quarter of 2022. The Bank’s returns on average assets, average common stockholders’ equity and average tangible common stockholders’ equity for the full year of 2023 were 2.20%, 14.93% and 17.50%, respectively, compared to 2.08%, 12.66% and 14.97%, respectively, for the full year of 2022. The results for the fourth quarter and full year of 2023 include the impact of a
KEY BALANCE SHEET METRICS
Total loans were
Common stockholders’ equity was
Book value per common share was
The Bank’s ratio of total common stockholders’ equity to total assets was 14.02% at
ASSET QUALITY
The Bank’s ratio of nonperforming non-purchased loans to total loans (excluding purchased loans) was 0.23% at
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 https://ir.ozk.com. This release should be read in conjunction with management’s comments on the fourth quarter and full year 2023 results.
Management will conduct a conference call to take questions at
The Bank files annual, quarterly and current reports, proxy materials, and other information required by the Securities Exchange Act of 1934 with the
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 hiring or retaining qualified personnel, obtaining regulatory or other approvals, delays in acquiring satisfactory sites, obtaining permits and designing, constructing and opening new offices or relocating, selling or closing existing offices; 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, including the effects of recent failures of other financial institutions; recently enacted and potential 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
GENERAL INFORMATION
Consolidated Balance Sheets Unaudited |
||||||||
2023 | 2022 | |||||||
(Dollars in thousands) | ||||||||
ASSETS | ||||||||
Cash and cash equivalents | $ | 2,149,529 | $ | 1,033,454 | ||||
Investment securities – available for sale (“AFS”) | 3,244,371 | 3,491,613 | ||||||
Investment securities – trading | — | 8,817 | ||||||
50,400 | 42,406 | |||||||
Non-purchased loans | 26,195,030 | 20,400,154 | ||||||
Purchased loans | 264,045 | 378,637 | ||||||
Allowance for loan losses | (339,394 | ) | (208,858 | ) | ||||
Net Loans | 26,119,681 | 20,569,933 | ||||||
Premises and equipment, net | 676,821 | 678,405 | ||||||
Foreclosed assets | 61,720 | 6,616 | ||||||
Accrued interest receivable | 170,110 | 125,130 | ||||||
Bank owned life insurance (“BOLI”) | 808,490 | 789,805 | ||||||
660,789 | 663,543 | |||||||
Other, net | 295,546 | 246,846 | ||||||
Total assets | $ | 34,237,457 | $ | 27,656,568 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Deposits: | ||||||||
Demand non-interest bearing | $ | 4,095,874 | $ | 4,658,451 | ||||
Savings and interest bearing transaction | 9,074,296 | 9,905,717 | ||||||
Time | 14,234,973 | 6,935,975 | ||||||
Total deposits | 27,405,143 | 21,500,143 | ||||||
Other borrowings | 805,318 | 606,666 | ||||||
Subordinated notes | 347,761 | 346,947 | ||||||
Subordinated debentures | 121,652 | 121,591 | ||||||
Reserve for losses on unfunded loan commitments | 161,834 | 156,419 | ||||||
Accrued interest payable and other liabilities | 255,773 | 233,864 | ||||||
Total liabilities | $ | 29,097,481 | $ | 22,965,630 | ||||
Commitments and contingencies | ||||||||
Stockholders’ equity: | ||||||||
Preferred Stock: 14,000,000 issued and outstanding at |
338,980 | 338,980 | ||||||
Common Stock: 113,148,672 and 117,176,928 shares issued and outstanding at |
1,131 | 1,172 | ||||||
Additional paid-in capital | 1,612,446 | 1,753,941 | ||||||
Retained earnings | 3,283,818 | 2,773,135 | ||||||
Accumulated other comprehensive loss | (97,374 | ) | (177,649 | ) | ||||
Total stockholders’ equity before noncontrolling interest | 5,139,001 | 4,689,579 | ||||||
Noncontrolling interest | 975 | 1,359 | ||||||
Total stockholders’ equity | 5,139,976 | 4,690,938 | ||||||
Total liabilities and stockholders’ equity | $ | 34,237,457 | $ | 27,656,568 |
Consolidated Statements of Income Unaudited |
||||||||||||||
Three Months Ended |
Year Ended |
|||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||
(Dollars in thousands, except per share amounts) | ||||||||||||||
Interest income: | ||||||||||||||
Non-purchased loans | $ | 557,844 | $ | 367,019 | $ | 1,968,289 | $ | 1,158,332 | ||||||
Purchased loans | 5,412 | 7,141 | 23,257 | 31,441 | ||||||||||
Investment securities: | ||||||||||||||
Taxable | 9,667 | 10,280 | 39,429 | 41,526 | ||||||||||
Tax-exempt | 10,670 | 8,521 | 38,957 | 22,653 | ||||||||||
Deposits with banks | 21,901 | 5,961 | 58,241 | 12,116 | ||||||||||
Total interest income | 605,494 | 398,922 | 2,128,173 | 1,266,068 | ||||||||||
Interest expense: | ||||||||||||||
Deposits | 218,474 | 53,230 | 627,050 | 94,574 | ||||||||||
Other borrowings | 11,329 | 8,534 | 41,669 | 13,033 | ||||||||||
Subordinated notes | 2,631 | 2,631 | 10,439 | 10,439 | ||||||||||
Subordinated debentures | 2,512 | 2,039 | 9,530 | 5,780 | ||||||||||
Total interest expense | 234,946 | 66,434 | 688,688 | 123,826 | ||||||||||
Net interest income | 370,548 | 332,488 | 1,439,485 | 1,142,242 | ||||||||||
Provision for credit losses | 43,832 | 32,508 | 165,470 | 83,494 | ||||||||||
Net interest income after provision for credit losses | 326,716 | 299,980 | 1,274,015 | 1,058,748 | ||||||||||
Non-interest income: | ||||||||||||||
Service charges on deposit accounts: | ||||||||||||||
NSF and overdraft fees | 4,700 | 4,467 | 18,059 | 17,724 | ||||||||||
All other service charges | 7,333 | 7,138 | 27,995 | 28,102 | ||||||||||
Trust income | 2,165 | 1,977 | 8,524 | 7,990 | ||||||||||
BOLI income: | ||||||||||||||
Increase in cash surrender value | 5,401 | 4,953 | 20,696 | 19,532 | ||||||||||
Death benefits | 2,966 | — | 2,966 | 807 | ||||||||||
Loan service, maintenance and other fees | 6,755 | 3,780 | 18,920 | 13,819 | ||||||||||
Gains on sales of other assets | 3,288 | 510 | 9,029 | 11,467 | ||||||||||
Net gains on investment securities | 1,177 | 1,256 | 3,243 | 2,019 | ||||||||||
Other | 3,242 | 3,463 | 13,117 | 13,043 | ||||||||||
Total non-interest income | 37,027 | 27,544 | 122,549 | 114,503 | ||||||||||
Non-interest expense: | ||||||||||||||
Salaries and employee benefits | 66,270 | 59,946 | 258,846 | 226,373 | ||||||||||
Net occupancy and equipment | 17,234 | 17,584 | 72,591 | 70,058 | ||||||||||
Other operating expenses | 61,507 | 41,483 | 198,124 | 155,290 | ||||||||||
Total non-interest expense | 145,011 | 119,013 | 529,561 | 451,721 | ||||||||||
Income before taxes | 218,732 | 208,511 | 867,003 | 721,530 | ||||||||||
Provision for income taxes | 43,600 | 45,686 | 176,164 | 157,440 | ||||||||||
Net income | 175,132 | 162,825 | 690,839 | 564,090 | ||||||||||
Earnings attributable to noncontrolling interest | (6 | ) | 54 | (56 | ) | 51 | ||||||||
Preferred stock dividends | 4,047 | 4,047 | 16,187 | 16,621 | ||||||||||
Net income available to common stockholders | $ | 171,079 | $ | 158,832 | $ | 674,596 | $ | 547,520 | ||||||
Basic earnings per common share | $ | 1.51 | $ | 1.35 | $ | 5.89 | $ | 4.55 | ||||||
Diluted earnings per common share | $ | 1.50 | $ | 1.34 | $ | 5.87 | $ | 4.54 |
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 |
|||||||||||||||||||||||||||
Balances - |
$ | 338,980 | $ | 1,131 | $ | 1,607,510 | $ | 3,154,869 | $ | (198,986 | ) | $ | 1,409 | $ | 4,904,913 | ||||||||||||
Net income | — | — | — | 175,132 | — | — | 175,132 | ||||||||||||||||||||
Earnings attributable to noncontrolling interest | — | — | — | (6 | ) | — | 6 | — | |||||||||||||||||||
Total other comprehensive income | — | — | — | — | 101,612 | — | 101,612 | ||||||||||||||||||||
Preferred stock dividends, |
— | — | — | (4,047 | ) | — | — | (4,047 | ) | ||||||||||||||||||
Common stock dividends, |
— | — | — | (42,130 | ) | — | — | (42,130 | ) | ||||||||||||||||||
Return of capital paid to non-controlling interest | — | — | — | — | — | (440 | ) | (440 | ) | ||||||||||||||||||
Issuance of 17,018 shares of common stock pursuant to stock-based compensation plans | — | — | 547 | — | — | — | 547 | ||||||||||||||||||||
Stock-based compensation expense | — | — | 4,389 | — | — | — | 4,389 | ||||||||||||||||||||
Forfeitures of 4,578 shares of unvested restricted common stock |
— | — | — | — | — | — | — | ||||||||||||||||||||
Balances - |
$ | 338,980 | $ | 1,131 | $ | 1,612,446 | $ | 3,283,818 | $ | (97,374 | ) | $ | 975 | $ | 5,139,976 | ||||||||||||
Year ended |
|||||||||||||||||||||||||||
Balances - |
$ | 338,980 | $ | 1,172 | $ | 1,753,941 | $ | 2,773,135 | $ | (177,649 | ) | $ | 1,359 | $ | 4,690,938 | ||||||||||||
Net income | — | — | — | 690,839 | — | — | 690,839 | ||||||||||||||||||||
Earnings attributable to noncontrolling interest | — | — | — | (56 | ) | — | 56 | — | |||||||||||||||||||
Total other comprehensive income | — | — | — | — | 80,275 | — | 80,275 | ||||||||||||||||||||
Preferred stock dividends, |
— | — | — | (16,187 | ) | — | — | (16,187 | ) | ||||||||||||||||||
Common stock dividends, |
— | — | — | (163,913 | ) | — | — | (163,913 | ) | ||||||||||||||||||
Return of capital paid to non-controlling interest | (440 | ) | (440 | ) | |||||||||||||||||||||||
Issuance of 522,651 shares of common stock pursuant to stock-based compensation plans |
— | 5 | 1,166 | — | — | — | 1,171 | ||||||||||||||||||||
Repurchase and cancellation of 4,304,239 shares of common stock under share repurchase program, including excise taxes |
— | (44 | ) | (151,421 | ) | — | — | — | (151,465 | ) | |||||||||||||||||
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 | — | — | 17,432 | — | — | — | 17,432 | ||||||||||||||||||||
Forfeitures of 31,306 shares of unvested restricted common stock | — | — | — | — | — | — | — | ||||||||||||||||||||
Balances - |
$ | 338,980 | $ | 1,131 | $ | 1,612,446 | $ | 3,283,818 | $ | (97,374 | ) | $ | 975 | $ | 5,139,976 |
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 |
|||||||||||||||||||||||||||
Balances - |
$ | 338,980 | $ | 1,178 | $ | 1,773,562 | $ | 2,653,377 | $ | (227,673 | ) | $ | 3,120 | $ | 4,542,544 | ||||||||||||
Net income | — | — | — | 162,825 | — | — | 162,825 | ||||||||||||||||||||
Earnings attributable to noncontrolling interest | — | — | — | 54 | — | (54 | ) | — | |||||||||||||||||||
Total other comprehensive income | — | — | — | — | 50,024 | — | 50,024 | ||||||||||||||||||||
Preferred stock dividends, |
— | — | — | (4,047 | ) | — | — | (4,047 | ) | ||||||||||||||||||
Common stock dividends, |
— | — | — | (39,074 | ) | — | — | (39,074 | ) | ||||||||||||||||||
Return of capital to non-controlling interest | — | — | — | — | — | (1,707 | ) | (1,707 | ) | ||||||||||||||||||
Issuance of 10,496 shares of common stock pursuant to stock-based compensation plans | — | — | 241 | — | — | — | 241 | ||||||||||||||||||||
Repurchase and cancellation of 574,878 shares of common stock under share repurchase program | — | (6 | ) | (23,219 | ) | — | — | — | (23,225 | ) | |||||||||||||||||
Repurchase and cancellation of 3,890 shares of common stock withheld for tax pursuant to restricted stock vesting | — | — | (174 | ) | — | — | — | (174 | ) | ||||||||||||||||||
Stock-based compensation expense | — | — | 3,531 | — | — | — | 3,531 | ||||||||||||||||||||
Forfeitures of 16,405 shares of unvested restricted common stock | — | — | — | — | — | — | — | ||||||||||||||||||||
Balances - |
$ | 338,980 | $ | 1,172 | $ | 1,753,941 | $ | 2,773,135 | $ | (177,649 | ) | $ | 1,359 | $ | 4,690,938 | ||||||||||||
Year ended |
|||||||||||||||||||||||||||
Balances - |
$ | 338,980 | $ | 1,254 | $ | 2,093,702 | $ | 2,378,466 | $ | 23,841 | $ | 3,117 | $ | 4,839,360 | |||||||||||||
Net income | — | — | — | 564,090 | — | — | 564,090 | ||||||||||||||||||||
Earnings attributable to noncontrolling interest | — | — | — | 51 | — | (51 | ) | — | |||||||||||||||||||
Total other comprehensive loss | — | — | — | — | (201,490 | ) | — | (201,490 | ) | ||||||||||||||||||
Preferred stock dividends, |
— | — | — | (16,621 | ) | — | — | (16,621 | ) | ||||||||||||||||||
Common stock dividends, |
— | — | — | (152,851 | ) | — | — | (152,851 | ) | ||||||||||||||||||
Return of capital to non-controlling interest | — | — | — | — | — | (1,707 | ) | (1,707 | ) | ||||||||||||||||||
Issuance of 305,839 shares of common stock pursuant to stock-based compensation plans | — | 3 | 2,490 | — | — | — | 2,493 | ||||||||||||||||||||
Repurchase and cancellation of 8,373,398 shares of common stock under share repurchase program |
— | (83 | ) | (349,886 | ) | — | — | — | (349,969 | ) | |||||||||||||||||
Repurchase and cancellation of 116,864 shares of common stock withheld for tax pursuant to stock-based compensation plans. |
— | (1 | ) | (5,572 | ) | — | — | — | (5,573 | ) | |||||||||||||||||
Stock-based compensation expense | — | — | 13,206 | — | — | — | 13,206 | ||||||||||||||||||||
Forfeitures of 82,397 shares of unvested restricted common stock | — | (1 | ) | 1 | — | — | — | — | |||||||||||||||||||
Balances - |
$ | 338,980 | $ | 1,172 | $ | 1,753,941 | $ | 2,773,135 | $ | (177,649 | ) | $ | 1,359 | $ | 4,690,938 |
Summary of Non-Interest Expense Unaudited |
|||||||||||
Three Months Ended |
Year Ended |
||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||
(Dollars in thousands) | |||||||||||
Salaries and employee benefits | $ | 66,270 | $ | 59,946 | $ | 258,846 | $ | 226,373 | |||
Net occupancy and equipment | 17,234 | 17,584 | 72,591 | 70,058 | |||||||
Other operating expenses: | |||||||||||
Deposit insurance and assessments | 15,803 | 2,710 | 30,351 | 9,610 | |||||||
Software and data processing | 10,577 | 9,512 | 39,212 | 35,373 | |||||||
Professional and outside services | 6,233 | 5,652 | 21,423 | 21,581 | |||||||
Advertising and public relations | 5,153 | 2,987 | 16,150 | 8,797 | |||||||
Telecommunication services | 2,251 | 2,134 | 8,865 | 7,986 | |||||||
Postage and supplies | 2,121 | 1,906 | 7,981 | 7,146 | |||||||
ATM expense | 1,957 | 1,834 | 7,681 | 6,331 | |||||||
Travel and meals | 1,938 | 1,755 | 7,582 | 7,661 | |||||||
Amortization of CRA and tax credit investments | 7,618 | 5,408 | 27,768 | 20,293 | |||||||
Other | 7,856 | 7,585 | 31,111 | 30,512 | |||||||
Total non-interest expense | $ | 145,011 | $ | 119,013 | $ | 529,561 | $ | 451,721 |
Summary of Total Loans Outstanding Unaudited |
|||||||||||||
2023 | 2022 | ||||||||||||
(Dollars in thousands) | |||||||||||||
Real estate: | |||||||||||||
Residential 1-4 family | $ | 961,338 | 3.6 | % | $ | 981,567 | 4.7 | % | |||||
Non-farm/non-residential | 5,309,239 | 20.1 | 4,665,268 | 22.5 | |||||||||
Construction/land development | 11,653,487 | 44.0 | 8,215,056 | 39.5 | |||||||||
Agricultural | 256,423 | 1.0 | 239,689 | 1.2 | |||||||||
Multifamily residential | 2,064,106 | 7.8 | 1,503,398 | 7.2 | |||||||||
Total real estate | 20,244,593 | 76.5 | 15,604,978 | 75.1 | |||||||||
Commercial and industrial | 1,269,610 | 4.8 | 902,321 | 4.3 | |||||||||
Consumer | 2,965,042 | 11.2 | 2,445,851 | 11.8 | |||||||||
Other | 1,979,830 | 7.5 | 1,825,641 | 8.8 | |||||||||
Total loans | 26,459,075 | 100.0 | % | 20,778,791 | 100.0 | % | |||||||
Allowance for loan losses | (339,394 | ) | (208,858 | ) | |||||||||
Net loans | $ | 26,119,681 | $ | 20,569,933 |
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 |
||||||||||
Balances – |
$ | 303,358 | $ | 158,128 | $ | 461,486 | ||||
Net charge-offs | (4,090 | ) | — | (4,090 | ) | |||||
Provision for credit losses | 40,126 | 3,706 | 43,832 | |||||||
Balances – |
$ | 339,394 | $ | 161,834 | $ | 501,228 | ||||
Year ended |
||||||||||
Balances – |
$ | 208,858 | $ | 156,419 | $ | 365,277 | ||||
Net charge-offs | (29,519 | ) | — | (29,519 | ) | |||||
Provision for credit losses | 160,055 | 5,415 | 165,470 | |||||||
Balances – |
$ | 339,394 | $ | 161,834 | $ | 501,228 | ||||
Three months ended |
||||||||||
Balances – |
$ | 200,098 | $ | 135,537 | $ | 335,635 | ||||
Net charge-offs | (2,866 | ) | — | (2,866 | ) | |||||
Provision for credit losses | 11,626 | 20,882 | 32,508 | |||||||
Balances – |
$ | 208,858 | $ | 156,419 | $ | 365,277 | ||||
Year ended |
||||||||||
Balances – |
$ | 217,380 | $ | 71,609 | $ | 288,989 | ||||
Net charge-offs | (7,206 | ) | — | (7,206 | ) | |||||
Provision for credit losses | (1,316 | ) | 84,810 | 83,494 | ||||||
Balances – |
$ | 208,858 | $ | 156,419 | $ | 365,277 |
Summary of Deposits – By Account Type Unaudited |
||||||||||||
2023 | 2022 | |||||||||||
(Dollars in thousands) | ||||||||||||
Non-interest bearing | $ | 4,095,874 | 14.9 | % | $ | 4,658,451 | 21.7 | % | ||||
Interest bearing: | ||||||||||||
Transaction (NOW) | 4,486,372 | 16.4 | 4,097,532 | 19.1 | ||||||||
Savings and money market | 4,587,924 | 16.7 | 5,808,185 | 27.0 | ||||||||
Time deposits | 14,234,973 | 52.0 | 6,935,975 | 32.2 | ||||||||
Total deposits | $ | 27,405,143 | 100.0 | % | $ | 21,500,143 | 100.0 | % |
Summary of Deposits – By Customer Type Unaudited |
|||||||||||
2023 | 2022 | ||||||||||
(Dollars in thousands) | |||||||||||
Non-interest bearing | $ | 4,095,874 | 14.9 | % | $ | 4,658,451 | 21.7 | % | |||
Interest bearing: | |||||||||||
Consumer and commercial: | |||||||||||
Consumer – Non-Time | 2,792,199 | 10.2 | 3,916,078 | 18.2 | |||||||
Consumer – Time | 10,216,217 | 37.3 | 4,936,061 | 23.0 | |||||||
Commercial – Non-Time | 2,439,175 | 8.9 | 2,741,007 | 12.7 | |||||||
Commercial – Time | 767,566 | 2.8 | 516,477 | 2.4 | |||||||
Public funds | 3,725,766 | 13.6 | 2,103,392 | 9.8 | |||||||
Brokered | 2,655,317 | 9.7 | 2,050,294 | 9.5 | |||||||
Reciprocal | 713,029 | 2.6 | 578,383 | 2.7 | |||||||
Total deposits | $ | 27,405,143 | 100.0 | % | $ | 21,500,143 | 100.0 | % |
Selected Consolidated Financial Data Unaudited |
|||||||||||||||||||||
Three Months Ended |
Year Ended |
||||||||||||||||||||
2023 | 2022 | % Change |
2023 | 2022 | % Change |
||||||||||||||||
(Dollars in thousands, except per share amounts) | |||||||||||||||||||||
Income statement data: | |||||||||||||||||||||
Net interest income | $ | 370,548 | $ | 332,488 | 11.4 | % | $ | 1,439,485 | $ | 1,142,242 | 26.0 | % | |||||||||
Provision for credit losses | 43,832 | 32,508 | 34.8 | 165,470 | 83,494 | 98.2 | |||||||||||||||
Non-interest income | 37,027 | 27,544 | 34.4 | 122,549 | 114,503 | 7.0 | |||||||||||||||
Non-interest expense | 145,011 | 119,013 | 21.8 | 529,561 | 451,721 | 17.2 | |||||||||||||||
Net income | 175,132 | 162,825 | 7.6 | 690,839 | 564,090 | 22.5 | |||||||||||||||
Preferred stock dividends | 4,047 | 4,047 | — | 16,187 | 16,621 | (2.6 | ) | ||||||||||||||
Net income available to common stockholders | 171,079 | 158,832 | 7.7 | 674,596 | 547,520 | 23.2 | |||||||||||||||
Pre-tax pre-provision net revenue (1) | 262,564 | 241,019 | 8.9 | 1,032,473 | 805,024 | 28.3 | |||||||||||||||
Common share and per common share data: | |||||||||||||||||||||
Diluted earnings per common share | $ | 1.50 | $ | 1.34 | 11.9 | % | $ | 5.87 | $ | 4.54 | 29.3 | % | |||||||||
Basic earnings per common share | 1.51 | 1.35 | 11.9 | 5.89 | 4.55 | 29.5 | |||||||||||||||
Common stock dividends per share | 0.37 | 0.33 | 12.1 | 1.42 | 1.26 | 12.7 | |||||||||||||||
Book value per share | 42.42 | 37.13 | 14.2 | 42.42 | 37.13 | 14.2 | |||||||||||||||
Tangible book value per common share (1) | 36.58 | 31.47 | 16.2 | 36.58 | 31.47 | 16.2 | |||||||||||||||
Weighted-average diluted shares outstanding (thousands) | 113,756 | 118,201 | (3.8 | ) | 114,833 | 120,700 | (4.9 | ) | |||||||||||||
End of period shares outstanding (thousands) | 113,149 | 117,177 | (3.4 | ) | 113,149 | 117,177 | (3.4 | ) | |||||||||||||
Balance sheet data at period end: | |||||||||||||||||||||
Total assets | $ | 34,237,457 | $ | 27,656,568 | 23.8 | % | $ | 34,237,457 | $ | 27,656,568 | 23.8 | % | |||||||||
Total loans | 26,459,075 | 20,778,791 | 27.3 | 26,459,075 | 20,778,791 | 27.3 | |||||||||||||||
Non-purchased loans | 26,195,030 | 20,400,154 | 28.4 | 26,195,030 | 20,400,154 | 28.4 | |||||||||||||||
Purchased loans | 264,045 | 378,637 | (30.3 | ) | 264,045 | 378,637 | (30.3 | ) | |||||||||||||
Allowance for loan losses | 339,394 | 208,858 | 62.5 | 339,394 | 208,858 | 62.5 | |||||||||||||||
Foreclosed assets | 61,720 | 6,616 | 832.9 | 61,720 | 6,616 | 832.9 | |||||||||||||||
Investment securities – AFS | 3,244,371 | 3,491,613 | (7.1 | ) | 3,244,371 | 3,491,613 | (7.1 | ) | |||||||||||||
660,789 | 663,543 | (0.4 | ) | 660,789 | 663,543 | (0.4 | ) | ||||||||||||||
Deposits | 27,405,143 | 21,500,143 | 27.5 | 27,405,143 | 21,500,143 | 27.5 | |||||||||||||||
Other borrowings | 805,318 | 606,666 | 32.7 | 805,318 | 606,666 | 32.7 | |||||||||||||||
Subordinated notes | 347,761 | 346,947 | 0.2 | 347,761 | 346,947 | 0.2 | |||||||||||||||
Subordinated debentures | 121,652 | 121,591 | 0.1 | 121,652 | 121,591 | 0.1 | |||||||||||||||
Unfunded balance of closed loans | 20,573,029 | 21,062,733 | (2.3 | ) | 20,573,029 | 21,062,733 | (2.3 | ) | |||||||||||||
Reserve for losses on unfunded loan commitments | 161,834 | 156,419 | 3.5 | 161,834 | 156,419 | 3.5 | |||||||||||||||
Preferred stock | 338,980 | 338,980 | — | 338,980 | 338,980 | — | |||||||||||||||
Total common stockholders’ equity (1) | 4,800,021 | 4,350,599 | 10.3 | 4,800,021 | 4,350,599 | 10.3 | |||||||||||||||
Net unrealized losses on investment securities AFS included in stockholders' equity |
(97,374 | ) | (177,649 | ) | (97,374 | ) | (177,649 | ) | |||||||||||||
Loan (including purchased loans) to deposit ratio | 96.55 | % | 96.64 | % | 96.55 | % | 96.64 | % | |||||||||||||
Selected ratios: | |||||||||||||||||||||
Return on average assets (2) | 2.04 | % | 2.35 | % | 2.20 | % | 2.08 | % | |||||||||||||
Return on average common stockholders' equity (1) (2) | 14.58 | 14.76 | 14.93 | 12.66 | |||||||||||||||||
Return on average tangible common stockholders' equity (1) (2) | 16.99 | 17.48 | 17.50 | 14.97 | |||||||||||||||||
Average common equity to total average assets | 13.99 | 15.90 | 14.74 | 16.42 | |||||||||||||||||
Net interest margin – FTE (2) | 4.82 | 5.46 | 5.16 | 4.82 | |||||||||||||||||
Efficiency ratio | 35.33 | 32.84 | 33.67 | 35.75 | |||||||||||||||||
Net charge-offs to average non-purchased loans (2) (3) | 0.07 | 0.09 | 0.11 | 0.07 | |||||||||||||||||
Net charge-offs to average total loans (2) | 0.06 | 0.06 | 0.13 | 0.04 | |||||||||||||||||
Nonperforming loans to total loans (4) | 0.23 | 0.22 | 0.23 | 0.22 | |||||||||||||||||
Nonperforming assets to total assets (4) | 0.36 | 0.19 | 0.36 | 0.19 | |||||||||||||||||
Allowance for loan losses to total loans (5) | 1.28 | 1.01 | 1.28 | 1.01 | |||||||||||||||||
Allowance for credit losses to total loans and unfunded loan commitments | 1.07 | 0.87 | 1.07 | 0.87 | |||||||||||||||||
Other information: | |||||||||||||||||||||
Non-accrual loans (4) | $ | 60,982 | $ | 43,411 | $ | 60,982 | $ | 43,411 | |||||||||||||
Accruing loans - 90 days past due (4) | — | — | — | — |
(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.
Selected Consolidated Financial Data (continued) Unaudited |
||||||||||
Three Months Ended | ||||||||||
% Change |
||||||||||
(Dollars in thousands, except per share amounts) | ||||||||||
Income statement data: | ||||||||||
Net interest income | $ | 370,548 | $ | 367,261 | 0.9 | % | ||||
Provision for credit losses | 43,832 | 44,036 | (0.5 | ) | ||||||
Non-interest income | 37,027 | 25,727 | 43.9 | |||||||
Non-interest expense | 145,011 | 128,978 | 12.4 | |||||||
Net income | 175,132 | 173,830 | 0.7 | |||||||
Preferred stock dividends | 4,047 | 4,047 | — | |||||||
Net income available to common stockholders | 171,079 | 169,746 | 0.8 | |||||||
Pre-tax pre-provision net revenue (1) | 262,564 | 264,010 | (0.5 | ) | ||||||
Common share and per common share data: | ||||||||||
Diluted earnings per common share | $ | 1.50 | $ | 1.49 | 0.7 | % | ||||
Basic earnings per common share | 1.51 | 1.50 | 0.7 | |||||||
Common stock dividends per share | 0.37 | 0.36 | 2.8 | |||||||
Book value per share | 42.42 | 40.35 | 5.1 | |||||||
Tangible book value per common share (1) | 36.58 | 34.50 | 6.0 | |||||||
Weighted-average diluted shares outstanding (thousands) | 113,756 | 113,770 | — | |||||||
End of period shares outstanding (thousands) | 113,149 | 113,136 | — | |||||||
Balance sheet data at period end: | ||||||||||
Total assets | $ | 34,237,457 | $ | 32,767,328 | 4.5 | % | ||||
Total loans | 26,459,075 | 25,331,740 | 4.5 | |||||||
Non-purchased loans | 26,195,030 | 25,051,214 | 4.6 | |||||||
Purchased loans | 264,045 | 280,526 | (5.9 | ) | ||||||
Allowance for loan losses | 339,394 | 303,358 | 11.9 | |||||||
Foreclosed assets | 61,720 | 68,738 | (10.2 | ) | ||||||
Investment securities – AFS | 3,244,371 | 3,153,817 | 2.9 | |||||||
660,789 | 660,789 | — | ||||||||
Deposits | 27,405,143 | 25,552,856 | 7.2 | |||||||
Other borrowings | 805,318 | 1,430,192 | (43.7 | ) | ||||||
Subordinated notes | 347,761 | 347,556 | 0.1 | |||||||
Subordinated debentures | 121,652 | 121,652 | — | |||||||
Unfunded balance of closed loans | 20,573,029 | 20,625,371 | (0.3 | ) | ||||||
Reserve for losses on unfunded loan commitments | 161,834 | 158,128 | 2.3 | |||||||
Preferred stock | 338,980 | 338,980 | — | |||||||
Total common stockholders’ equity (1) | 4,800,021 | 4,564,524 | 5.2 | |||||||
Net unrealized losses on investment securities AFS included in stockholders' equity |
(97,374 | ) | (198,986 | ) | ||||||
Loan (including purchased loans) to deposit ratio | 96.55 | % | 99.13 | % | ||||||
Selected ratios: | ||||||||||
Return on average assets (2) | 2.04 | % | 2.13 | % | ||||||
Return on average common stockholders' equity (1) (2) | 14.58 | 14.81 | ||||||||
Return on average tangible common stockholders' equity (1) (2) | 16.99 | 17.33 | ||||||||
Average common equity to total average assets | 13.99 | 14.38 | ||||||||
Net interest margin – FTE (2) | 4.82 | 5.05 | ||||||||
Efficiency ratio | 35.33 | 32.60 | ||||||||
Net charge-offs to average non-purchased loans (2) (3) | 0.07 | 0.17 | ||||||||
Net charge-offs to average total loans (2) | 0.06 | 0.15 | ||||||||
Nonperforming loans to total loans (4) | 0.23 | 0.25 | ||||||||
Nonperforming assets to total assets (4) | 0.36 | 0.40 | ||||||||
Allowance for loan losses to total loans (5) | 1.28 | 1.20 | ||||||||
Allowance for credit losses to total loans and unfunded loan commitments | 1.07 | 1.00 | ||||||||
Other information: | ||||||||||
Non-accrual loans (4) | $ | 60,982 | $ | 62,648 | ||||||
Accruing loans - 90 days past due (4) | — | — |
(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.
Supplemental Quarterly Financial Data Unaudited |
|||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||
Earnings summary: | |||||||||||||||||||
Net interest income | $ | 370,548 | $ | 367,261 | $ | 356,824 | $ | 344,852 | $ | 332,488 | |||||||||
Federal tax (FTE) adjustment | 2,925 | 2,632 | 2,602 | 2,603 | 2,383 | ||||||||||||||
Net interest income (FTE) | 373,473 | 369,893 | 359,426 | 347,455 | 334,871 | ||||||||||||||
Provision for credit losses | (43,832 | ) | (44,036 | ) | (41,774 | ) | (35,829 | ) | (32,508 | ) | |||||||||
Non-interest income | 37,027 | 25,727 | 31,987 | 27,809 | 27,544 | ||||||||||||||
Non-interest expense | (145,011 | ) | (128,978 | ) | (129,355 | ) | (126,217 | ) | (119,013 | ) | |||||||||
Pre-tax income (FTE) | 221,657 | 222,606 | 220,284 | 213,218 | 210,894 | ||||||||||||||
FTE adjustment | (2,925 | ) | (2,632 | ) | (2,602 | ) | (2,603 | ) | (2,383 | ) | |||||||||
Provision for income taxes | (43,600 | ) | (46,144 | ) | (45,717 | ) | (40,703 | ) | (45,686 | ) | |||||||||
Noncontrolling interest | (6 | ) | (37 | ) | (1 | ) | (12 | ) | 54 | ||||||||||
Preferred stock dividend | (4,047 | ) | (4,047 | ) | (4,047 | ) | (4,047 | ) | (4,047 | ) | |||||||||
Net income available to common stockholders | $ | 171,079 | $ | 169,746 | $ | 167,917 | $ | 165,853 | $ | 158,832 | |||||||||
Earnings per common share – diluted | $ | 1.50 | $ | 1.49 | $ | 1.47 | $ | 1.41 | $ | 1.34 | |||||||||
Pre-tax pre-provision net revenue (1) | $ | 262,564 | $ | 264,010 | $ | 259,456 | $ | 246,444 | $ | 241,019 | |||||||||
Selected balance sheet data at period end: | |||||||||||||||||||
Total assets | $ | 34,237,457 | $ | 32,767,328 | $ | 30,761,870 | $ | 28,971,170 | $ | 27,656,568 | |||||||||
Non-purchased loans | 26,195,030 | 25,051,214 | 23,291,785 | 21,700,941 | 20,400,154 | ||||||||||||||
Purchased loans | 264,045 | 280,526 | 315,661 | 361,065 | 378,637 | ||||||||||||||
Investment securities – AFS | 3,244,371 | 3,153,817 | 3,262,366 | 3,422,031 | 3,491,613 | ||||||||||||||
Deposits | 27,405,143 | 25,552,856 | 23,983,397 | 22,282,983 | 21,500,143 | ||||||||||||||
Unfunded balance of closed loans | 20,573,029 | 20,625,371 | 21,119,761 | 20,965,040 | 21,062,733 | ||||||||||||||
Allowance for credit losses: | |||||||||||||||||||
Balance at beginning of period | $ | 461,486 | $ | 426,820 | $ | 393,767 | $ | 365,277 | $ | 335,635 | |||||||||
Net charge-offs | (4,090 | ) | (9,370 | ) | (8,721 | ) | (7,339 | ) | (2,866 | ) | |||||||||
Provision for credit losses | 43,832 | 44,036 | 41,774 | 35,829 | 32,508 | ||||||||||||||
Balance at end of period | $ | 501,228 | $ | 461,486 | $ | 426,820 | $ | 393,767 | $ | 365,277 | |||||||||
Allowance for loan losses | $ | 339,394 | $ | 303,358 | $ | 263,188 | $ | 222,025 | $ | 208,858 | |||||||||
Reserve for losses on unfunded loan commitments | 161,834 | 158,128 | 163,632 | 171,742 | 156,419 | ||||||||||||||
Total allowance for credit losses | $ | 501,228 | $ | 461,486 | $ | 426,820 | $ | 393,767 | $ | 365,277 | |||||||||
Selected ratios: | |||||||||||||||||||
Net interest margin – FTE (2) | 4.82 | % | 5.05 | % | 5.32 | % | 5.54 | % | 5.46 | % | |||||||||
Efficiency ratio | 35.33 | 32.60 | 33.05 | 33.63 | 32.84 | ||||||||||||||
Net charge-offs to average non-purchased loans (2) (3) | 0.07 | 0.17 | 0.03 | 0.15 | 0.09 | ||||||||||||||
Net charge-offs to average total loans (2) | 0.06 | 0.15 | 0.15 | 0.14 | 0.06 | ||||||||||||||
Nonperforming loans to total loans (4) | 0.23 | 0.25 | 0.15 | 0.15 | 0.22 | ||||||||||||||
Nonperforming assets to total assets (4) | 0.36 | 0.40 | 0.32 | 0.34 | 0.19 | ||||||||||||||
Allowance for loan losses to total loans (5) | 1.28 | 1.20 | 1.11 | 1.01 | 1.01 | ||||||||||||||
Allowance for credit losses to total loans and unfunded loan commitments |
1.07 | 1.00 | 0.95 | 0.92 | 0.87 | ||||||||||||||
Loans past due 30 days or more, including past due non-accrual loans, to total loans (4) |
0.20 | 0.21 | 0.14 | 0.15 | 0.13 |
(1) Calculations of pre-tax pre-provision net revenue and the reconciliation 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.
Average Consolidated Balance Sheets and Net Interest Analysis – FTE Unaudited |
|||||||||||||||||||||||||||||||||||
Three Months Ended |
Year Ended |
||||||||||||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||||||||||||
Average Balance | Income/ Expense | Yield/Rate | Average Balance | Income/ Expense | Yield/Rate | Average Balance | Income/ Expense | Yield/Rate | Average Balance | Income/ Expense | Yield/Rate | ||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||||||
ASSETS | |||||||||||||||||||||||||||||||||||
Interest earning assets: | |||||||||||||||||||||||||||||||||||
Interest earning deposits and federal funds sold | $ | 1,637,395 | $ | 21,902 | 5.31 | % | $ | 692,066 | $ | 5,961 | 3.42 | % | $ | 1,164,595 | $ | 58,241 | 5.00 | % | $ | 940,116 | $ | 12,116 | 1.29 | % | |||||||||||
Investment securities: | |||||||||||||||||||||||||||||||||||
Taxable | 2,143,606 | 9,667 | 1.79 | 2,566,011 | 10,280 | 1.59 | 2,299,254 | 39,429 | 1.71 | 2,950,929 | 41,526 | 1.41 | |||||||||||||||||||||||
Tax-exempt – FTE | 1,097,750 | 13,506 | 4.88 | 974,070 | 10,786 | 4.39 | 1,049,642 | 49,313 | 4.70 | 774,038 | 28,675 | 3.70 | |||||||||||||||||||||||
Non-purchased loans – FTE | 25,590,389 | 557,932 | 8.65 | 19,728,477 | 367,136 | 7.38 | 23,258,595 | 1,968,696 | 8.46 | 18,744,652 | 1,159,161 | 6.18 | |||||||||||||||||||||||
Purchased loans | 271,222 | 5,412 | 7.92 | 391,801 | 7,141 | 7.23 | 321,570 | 23,257 | 7.23 | 445,955 | 31,441 | 7.05 | |||||||||||||||||||||||
Total earning assets – FTE | 30,740,362 | 608,419 | 7.85 | 24,352,425 | 401,304 | 6.54 | 28,093,656 | 2,138,936 | 7.61 | 23,855,690 | 1,272,919 | 5.34 | |||||||||||||||||||||||
Non-interest earning assets | 2,538,592 | 2,508,505 | 2,550,276 | 2,472,672 | |||||||||||||||||||||||||||||||
Total assets | $ | 33,278,954 | $ | 26,860,930 | $ | 30,643,932 | $ | 26,328,362 | |||||||||||||||||||||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||||||||||||||||||||||||||
Interest bearing liabilities: | |||||||||||||||||||||||||||||||||||
Deposits: | |||||||||||||||||||||||||||||||||||
Savings and interest bearing transaction | $ | 9,004,724 | $ | 64,165 | 2.83 | % | $ | 9,519,104 | $ | 26,543 | 1.11 | % | $ | 9,152,060 | $ | 211,498 | 2.31 | % | $ | 9,588,372 | $ | 48,344 | 0.50 | % | |||||||||||
Time deposits | 13,280,889 | 154,309 | 4.61 | 6,321,731 | 26,687 | 1.67 | 10,543,800 | 415,552 | 3.94 | 5,680,395 | 46,229 | 0.81 | |||||||||||||||||||||||
Total interest bearing deposits | 22,285,613 | 218,474 | 3.89 | 15,840,835 | 53,230 | 1.33 | 19,695,860 | 627,050 | 3.18 | 15,268,767 | 94,573 | 0.62 | |||||||||||||||||||||||
Other borrowings | 863,828 | 11,329 | 5.20 | 753,605 | 8,533 | 4.49 | 803,797 | 41,669 | 5.18 | 673,932 | 13,034 | 1.93 | |||||||||||||||||||||||
Subordinated notes | 347,661 | 2,631 | 3.00 | 346,847 | 2,631 | 3.01 | 347,356 | 10,439 | 3.01 | 346,538 | 10,439 | 3.01 | |||||||||||||||||||||||
Subordinated debentures | 121,652 | 2,512 | 8.19 | 121,523 | 2,039 | 6.66 | 121,648 | 9,530 | 7.83 | 121,310 | 5,780 | 4.76 | |||||||||||||||||||||||
Total interest bearing liabilities | 23,618,754 | 234,946 | 3.95 | 17,062,810 | 66,433 | 1.54 | 20,968,661 | 688,688 | 3.28 | 16,410,547 | 123,826 | 0.75 | |||||||||||||||||||||||
Non-interest bearing liabilities: | |||||||||||||||||||||||||||||||||||
Non-interest bearing deposits | 4,150,323 | 4,751,644 | 4,315,200 | 4,873,842 | |||||||||||||||||||||||||||||||
Other non-interest bearing liabilities | 513,326 | 435,108 | 502,732 | 378,471 | |||||||||||||||||||||||||||||||
Total liabilities | 28,282,403 | 22,249,562 | 25,786,593 | 21,662,860 | |||||||||||||||||||||||||||||||
Total stockholders’ equity before noncontrolling interest | 4,995,217 | 4,608,570 | 4,855,976 | 4,662,467 | |||||||||||||||||||||||||||||||
Noncontrolling interest | 1,334 | 2,798 | 1,363 | 3,035 | |||||||||||||||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 33,278,954 | $ | 26,860,930 | $ | 30,643,932 | $ | 26,328,362 | |||||||||||||||||||||||||||
Net interest income – FTE | $ | 373,473 | $ | 334,871 | $ | 1,450,248 | $ | 1,149,093 | |||||||||||||||||||||||||||
Net interest margin – FTE | 4.82 | % | 5.46 | % | 5.16 | % | 4.82 | % | |||||||||||||||||||||||||||
Core spread (1) | 4.76 | % | 6.05 | % | 5.28 | % | 5.56 | % |
(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.
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 | |||||||||||||||||||
Year Ended |
|||||||||||||||||||
2023 | 2022 | 2023 | 2023 | 2022 | |||||||||||||||
(Dollars in thousands) | |||||||||||||||||||
Net income available to common stockholders | $ | 171,079 | $ | 158,832 | $ | 169,746 | $ | 674,596 | $ | 547,520 | |||||||||
Average stockholders’ equity before noncontrolling interest | $ | 4,995,217 | $ | 4,608,570 | $ | 4,885,620 | $ | 4,855,976 | $ | 4,662,467 | |||||||||
Less average preferred stock | (338,980 | ) | (338,980 | ) | (338,980 | ) | (338,980 | ) | (338,980 | ) | |||||||||
Total average common stockholders’ equity | 4,656,237 | 4,269,590 | 4,546,640 | 4,516,996 | 4,323,487 | ||||||||||||||
Less average intangible assets: | |||||||||||||||||||
(660,789 | ) | (660,789 | ) | (660,789 | ) | (660,789 | ) | (660,789 | ) | ||||||||||
Core deposit and other intangible assets, net of accumulated amortization | — | (3,421 | ) | — | (821 | ) | (5,443 | ) | |||||||||||
Total average intangibles | (660,789 | ) | (664,210 | ) | (660,789 | ) | (661,610 | ) | (666,232 | ) | |||||||||
Average tangible common stockholders’ equity | $ | 3,995,448 | $ | 3,605,380 | $ | 3,885,851 | $ | 3,855,386 | $ | 3,657,255 | |||||||||
Return on average common stockholders’ equity(1) | 14.58 | % | 14.76 | % | 14.81 | % | 14.93 | % | 12.66 | % | |||||||||
Return on average tangible common stockholders’ equity(1) | 16.99 | % | 17.48 | % | 17.33 | % | 17.50 | % | 14.97 | % |
(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 |
|||||||||||
2023 | 2022 | 2023 | |||||||||
(In thousands, except per share amounts) | |||||||||||
Total stockholders’ equity before noncontrolling interest | $ | 5,139,001 | $ | 4,689,579 | $ | 4,903,504 | |||||
Less preferred stock | (338,980 | ) | (338,980 | ) | (338,980 | ) | |||||
Total common stockholders’ equity | $ | 4,800,021 | $ | 4,350,599 | $ | 4,564,524 | |||||
Less intangible assets: | |||||||||||
(660,789 | ) | (660,789 | ) | (660,789 | ) | ||||||
Core deposit and other intangible assets, net of accumulated amortization | — | (2,754 | ) | — | |||||||
Total intangibles | (660,789 | ) | (663,543 | ) | (660,789 | ) | |||||
Total tangible common stockholders’ equity | $ | 4,139,232 | $ | 3,687,056 | $ | 3,903,735 | |||||
Shares of common stock outstanding | 113,149 | 117,177 | 113,136 | ||||||||
Book value per common share | $ | 42.42 | $ | 37.13 | $ | 40.35 | |||||
Tangible book value per common share | $ | 36.58 | $ | 31.47 | $ | 34.50 |
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 |
|||||||
2023 | 2022 | ||||||
(Dollars in thousands) | |||||||
Total stockholders’ equity before noncontrolling interest | $ | 5,139,001 | $ | 4,689,579 | |||
Less preferred stock | (338,980 | ) | (338,980 | ) | |||
Total common stockholders’ equity | $ | 4,800,021 | $ | 4,350,599 | |||
Less intangible assets: | |||||||
(660,789 | ) | (660,789 | ) | ||||
Core deposit and other intangible assets, net of accumulated amortization | — | (2,754 | ) | ||||
Total intangibles | (660,789 | ) | (663,543 | ) | |||
Total tangible common stockholders’ equity | 4,139,232 | 3,687,056 | |||||
Total assets | $ | 34,237,457 | $ | 27,656,568 | |||
Less intangible assets: | |||||||
$ | (660,789 | ) | $ | (660,789 | ) | ||
Core deposit and other intangible assets, net of accumulated amortization | — | (2,754 | ) | ||||
Total intangibles | (660,789 | ) | (663,543 | ) | |||
Total tangible assets | $ | 33,576,668 | $ | 26,993,025 | |||
Ratio of total common stockholders’ equity to total assets | 14.02 | % | 15.73 | % | |||
Ratio of total tangible common stockholders’ equity to total tangible assets | 12.33 | % | 13.66 | % |
Calculation of Pre-Tax Pre-Provision Net Revenue Unaudited |
||||||||||||||||||||||
Three Months Ended | Year Ended | |||||||||||||||||||||
2023 | 2023 | 2023 | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||
Net income available to common stockholders | $ | 171,079 | $ | 169,746 | $ | 167,917 | $ | 165,853 | $ | 158,832 | $ | 674,596 | $ | 547,520 | ||||||||
Preferred stock dividends | 4,047 | 4,047 | 4,047 | 4,047 | 4,047 | 16,187 | 16,621 | |||||||||||||||
Earnings attributable to noncontrolling interest |
6 | 37 | 1 | 12 | (54 | ) | 56 | (51 | ) | |||||||||||||
Provision for income taxes | 43,600 | 46,144 | 45,717 | 40,703 | 45,686 | 176,164 | 157,440 | |||||||||||||||
Provision for credit losses | 43,832 | 44,036 | 41,774 | 35,829 | 32,508 | 165,470 | 83,494 | |||||||||||||||
Pre-tax pre-provision net revenue | $ | 262,564 | $ | 264,010 | $ | 259,456 | $ | 246,444 | $ | 241,019 | $ | 1,032,473 | $ | 805,024 |
Investor Contact: | |||
Media Contact: |
Source: Bank OZK