Bank OZK Announces Third Quarter 2020 Earnings

10/22/2020 at 4:01 PM EDT

LITTLE ROCK, Ark., Oct. 22, 2020 (GLOBE NEWSWIRE) -- Bank OZK (the “Bank”) (Nasdaq: OZK) today announced that net income for the third quarter of 2020 was $109.3 million, a 5.2% increase from $103.9 million for the third quarter of 2019. Diluted earnings per common share for the third quarter of 2020 were $0.84, a 3.7% increase from $0.81 for the third quarter of 2019.

For the nine months ended September 30, 2020, net income was $171.4 million, a 47.3% decrease from $325.1 million for the first nine months of 2019. Diluted earnings per common share for the first nine months of 2020 were $1.32, a 47.6% decrease from $2.52 for the first nine months of 2019.

Pre-tax pre-provision net revenue (“PPNR”) was $145.7 million for the third quarter of 2020, a 1.0% increase from $144.3 million for the third quarter of 2019. PPNR was $417.0 million for the first nine months of 2020, a 7.3% decrease from $449.6 million for the first nine months of 2019. The calculation of PPNR and the reconciliation to generally accepted accounting principles (“GAAP”) are included in the schedules accompanying this release.

The COVID-19 pandemic significantly affected the global economy in the first nine months of 2020. The sudden and severe economic downturn, combined with the implementation of the current expected credit losses (“CECL”) method to calculate the Bank’s allowance for credit losses (“ACL”) and uncertain future economic projections, resulted in the Bank incurring provision for credit losses of $7.2 million in the third quarter and $196.9 million in the first nine months of 2020, resulting in a total ACL of $377.3 million at September 30, 2020.

The Bank’s annualized returns on average assets, average common stockholders’ equity and average tangible common stockholders’ equity for the third quarter of 2020 were 1.63%, 10.48% and 12.52%, respectively, compared to 1.81%, 10.22% and 12.33%, respectively, for the third quarter of 2019. The Bank’s annualized returns on average assets, average common stockholder’s equity and average tangible common stockholders’ equity for the first nine months of 2020 were 0.90%, 5.55% and 6.65%, respectively, compared to 1.92%, 11.07%, and 13.44%, respectively, for the first nine months of 2019. The calculation of the Bank’s return on average tangible common stockholders’ equity and the reconciliation to GAAP are included in the schedules accompanying this release.

George Gleason, Chairman and Chief Executive Officer stated, “Our strong credit culture and consistent discipline are important ingredients in our long-term success, and we believe they have positioned us well for the current economic environment and beyond. This is clearly evident in our excellent asset quality and earnings for the quarter just ended.”

KEY BALANCE SHEET METRICS

Total loans were $19.36 billion at September 30, 2020, a 9.2% increase from $17.73 billion at September 30, 2019. Non-purchased loans, which exclude loans acquired in previous acquisitions, were $18.42 billion at September 30, 2020, a 13.0% increase from $16.31 billion at September 30, 2019. Purchased loans, which consist of loans acquired in previous acquisitions, were $0.94 billion at September 30, 2020, a 34.2% decrease from $1.43 billion at September 30, 2019.

Deposits were $21.29 billion at September 30, 2020, a 15.4% increase from $18.44 billion at September 30, 2019. Total assets were $26.89 billion at September 30, 2020, a 14.9% increase from $23.40 billion at September 30, 2019.

Common stockholders’ equity was $4.19 billion at September 30, 2020, a 2.6% increase from $4.08 billion at September 30, 2019. Tangible common stockholders’ equity was $3.51 billion at September 30, 2020, a 3.5% increase from $3.39 billion at September 30, 2019. Book value per common share was $32.37 at September 30, 2020, a 2.3% increase from $31.63 at September 30, 2019. Tangible book value per common share was $27.13 at September 30, 2020, a 3.2% increase from $26.30 at September 30, 2019. 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 15.57% at September 30, 2020 compared to 17.43% at September 30, 2019. Its ratio of total tangible common stockholders’ equity to total tangible assets was 13.39% at September 30, 2020 compared to 14.93% at September 30, 2019. 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 results, which are available at http://ir.ozk.com. This release should be read in conjunction with management’s comments on the quarterly results.

Management will conduct a conference call to take questions on these quarterly results and management’s comments at 10:00 a.m. CT (11:00 a.m. ET) on October 23, 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 4644917. 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, 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 and 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, 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.”

STATEMENT REGARDING IMPACT OF COVID-19 PANDEMIC

The Bank prioritizes the health and safety of its employees and customers, and it will continue to do so throughout the duration of the pandemic. At the same time, the Bank remains focused on increasing shareholder value, managing credit exposure, managing expenses, enhancing the customer experience and supporting the communities it serves.

In management’s comments on its quarterly results (released simultaneously with this news release) and in its earnings conference call, the Bank has sought and will seek to describe the historical and future impact of the COVID-19 pandemic on the Bank’s assets, business, cash flows, financial condition, liquidity, prospects and results of operations, including the information and discussions regarding its provision and allowance for credit losses and the discussion regarding its net interest margin. Although the Bank believes that the statements that pertain to future events, results and trends and their impact on the Bank’s business are reasonable at the present time, those statements are not historical facts and are based upon current assumptions, expectations, estimates and projections, many of which, by their nature, are beyond the Bank’s control. Accordingly, all discussions regarding future events, results and trends and their impact on the Bank’s business, even in the near term, are necessarily uncertain given the fluid and evolving nature of the pandemic.

If the health, logistical or economic effects of the pandemic worsen, or if the assumptions, expectations, estimates or projections that underlie the Bank’s statements regarding future effects or trends prove to be incorrect, then the Bank’s actual assets, business, cash flows, financial condition, liquidity, prospects and results of operations may be materially and adversely impacted in ways that the Bank cannot reasonably forecast. Accordingly, when reading this news release and the accompanying prepared remarks from management on its quarterly results and when listening to the earnings conference call, undue reliance should not be placed upon any statement pertaining to future events, results and trends and their impact on the Bank’s business in future periods.

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 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 proposed 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 coronavirus (COVID-19) pandemic; changes in U.S. Government monetary and fiscal policy, including any changes that result from the upcoming elections in November; 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 ongoing global COVID-19 pandemic, including the magnitude and duration of the pandemic and actions taken to contain or treat COVID-19, on the Bank, the Bank’s customers, the global economy and financial markets; international or political instability; impairment of the Bank’s goodwill or other intangible assets; adoption of new accounting standards, including the effects from the adoption of the CECL methodology 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, 2019 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. Bank OZK was named Best Bank in the South for 2019-2020 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.

Investor Contact:		Tim Hicks (501) 978-2336
Media Contact:		Susan Blair (501) 978-2217

Bank OZK
Consolidated Balance Sheets
Unaudited

	September 30,			December 31,
	2020			2019
	(Dollars in thousands, except per share amounts)
ASSETS
Cash and cash equivalents	$	1,934,095		$	1,495,757
Investment securities ― available for sale ("AFS")		3,468,243			2,277,389
Federal Home Loan Bank of Dallas and other bankers' bank stocks		38,388			21,855
Non-purchased loans		18,419,958			16,224,539
Purchased loans		938,485			1,307,504
Allowance for loan losses		(308,847	)		(108,525	)
Net loans		19,049,596			17,423,518
Premises and equipment, net		739,066			711,541
Foreclosed assets		16,543			19,096
Accrued interest receivable		85,858			75,208
Bank owned life insurance (“BOLI”)		753,038			738,860
Goodwill and other intangible assets, net		677,251			684,542
Other, net		126,230			107,962
Total assets	$	26,888,308		$	23,555,728

LIABILITIES AND STOCKHOLDERS’ EQUITY
Deposits:
Demand non-interest bearing	$	3,908,207		$	2,795,251
Savings and interest bearing transaction		7,585,032			8,307,607
Time		9,794,166			7,371,401
Total deposits		21,287,405			18,474,259
Repurchase agreements with customers		4,994			11,249
Other borrowings		750,949			351,387
Subordinated notes		223,950			223,663
Subordinated debentures		120,335			119,916
Reserve for losses on unfunded loan commitments		68,426			—
Accrued interest payable and other liabilities		242,876			221,786
Total liabilities		22,698,935			19,402,260

Commitments and contingencies

Stockholders’ equity:
Preferred stock; $0.01 par value; 100,000,000 shares authorized; no shares issued or outstanding at September 30, 2020 or December 31, 2019		—			—
Common stock; $0.01 par value; 300,000,000 shares authorized; 129,342,073 and 128,951,024 shares issued and outstanding at September 30, 2020 and December 31, 2019, respectively		1,293			1,289
Additional paid-in capital		2,261,864			2,251,824
Retained earnings		1,862,012			1,869,983
Accumulated other comprehensive income		61,116			27,255
Total stockholders’ equity before noncontrolling interest		4,186,285			4,150,351
Noncontrolling interest		3,088			3,117
Total stockholders’ equity		4,189,373			4,153,468
Total liabilities and stockholders’ equity	$	26,888,308		$	23,555,728

Bank OZK
Consolidated Statements of Income
Unaudited

	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
	(Dollars in thousands, except per share amounts)
Interest income:
Non-purchased loans	$	236,621	$	244,954	$	701,290	$	740,900
Purchased loans		16,269		26,042		54,743		84,756
Investment securities:
Taxable		9,666		12,511		31,480		40,992
Tax-exempt		5,193		3,363		14,636		10,930
Deposits with banks and federal funds sold		532		2,647		5,237		4,001
Total interest income		268,281		289,517		807,386		881,579

Interest expense:
Deposits		38,273		66,248		141,206		196,727
Repurchase agreements with customers		4		5		17		39
Other borrowings		1,156		90		2,168		1,497
Subordinated notes		3,207		3,216		9,551		9,542
Subordinated debentures		984		1,178		3,420		4,570
Total interest expense		43,624		70,737		156,362		212,375

Net interest income		224,657		218,780		651,024		669,204
Provision for credit losses		7,200		7,854		196,889		21,303
Net interest income after provision for credit losses		217,457		210,926		454,135		647,901

Non-interest income:
Service charges on deposit accounts		9,427		10,827		27,717		30,841
Trust income		1,936		1,975		5,635		5,544
BOLI income:
Increase in cash surrender value		5,081		5,208		15,205		15,547
Death benefits		—		206		608		206
Loan service, maintenance and other fees		3,351		4,197		10,461		13,636
Other income from purchased loans		—		674		—		2,925
Gains on sales of other assets		891		189		1,674		875
Net gains on investment securities		2,244		—		4,467		713
Other		3,746		3,170		10,180		6,834
Total non-interest income		26,676		26,446		75,947		77,121

Non-interest expense:
Salaries and employee benefits		53,119		48,376		153,003		140,801
Net occupancy and equipment		16,676		14,825		47,761		44,163
Other operating expenses		35,846		37,713		109,255		111,760
Total non-interest expense		105,641		100,914		310,019		296,724

Income before taxes		138,492		136,458		220,063		428,298
Provision for income taxes		29,251		32,574		48,707		103,189
Net income		109,241		103,884		171,356		325,109
Earnings attributable to noncontrolling interest		12		7		29		(9	)
Net income available to common stockholders	$	109,253	$	103,891	$	171,385	$	325,100

Basic earnings per common share	$	0.84	$	0.81	$	1.33	$	2.52

Diluted earnings per common share	$	0.84	$	0.81	$	1.32	$	2.52

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 September 30, 2020:
Balances – June 30, 2020	$	1,293		$	2,257,867		$	1,788,329		$	63,177		$	3,100		$	4,113,766
Net income		—			—			109,241			—			—			109,241
Earnings attributable to noncontrolling interest		—			—			12			—			(12	)		—
Total other comprehensive loss		—			—			—			(2,061	)		—			(2,061	)
Common stock dividends, $0.2725 per share		—			—			(35,570	)		—			—			(35,570	)
Stock-based compensation expense		—			3,997			—			—			—			3,997
Forfeitures of 8,228 shares of unvested restricted common stock		—			—			—			—			—			—
Balances – September 30, 2020	$	1,293		$	2,261,864		$	1,862,012		$	61,116		$	3,088		$	4,189,373

Nine months ended September 30, 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		—			—			171,356			—			—			171,356
Earnings attributable to noncontrolling interest		—			—			29			—			(29	)		—
Total other comprehensive income		—			—			—			33,861			—			33,861
Common stock dividends, $0.8025 per share		—			—			(104,012	)		—			—			(104,012	)
Issuance of 4,300 shares of common stock for exercise of stock options		—			45			—			—			—			45
Issuance of 493,761 shares of unvested restricted common stock		5			(5	)		—			—			—			—
Repurchase and cancellation of 61,873 shares of common stock		(1	)		(1,852	)		—			—			—			(1,853	)
Stock-based compensation expense		—			11,852			—			—			—			11,852
Forfeitures of 45,139 shares of unvested restricted common stock		—			—			—			—			—			—
Balances – September 30, 2020	$	1,293		$	2,261,864		$	1,862,012		$	61,116		$	3,088		$	4,189,373

Bank OZK
Consolidated Statements of Stockholders’ Equity (Continued)
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 September 30, 2019:
Balances – June 30, 2019	$	1,289		$	2,243,779		$	1,728,486		$	19,693		$	3,131		$	3,996,378
Net income		—			—			103,884			—			—			103,884
Earnings attributable to noncontrolling interest		—			—			7			—			(7	)		—
Total other comprehensive income		—			—			—			7,955			—			7,955
Common stock dividends, $0.24 per share		—			—			(30,963	)		—			—			(30,963	)
Issuance of 10,800 shares of common stock for exercise of stock options		—			242			—			—			—			242
Repurchase and cancellation of 974 shares of common stock		—			(28	)		—			—			—			(28	)
Stock-based compensation expense		—			3,980			—			—			—			3,980
Forfeitures of 10,183 shares of unvested restricted common stock		—			—			—			—			—			—
Balances – September 30, 2019	$	1,289		$	2,247,973		$	1,801,414		$	27,648		$	3,124		$	4,081,448

Nine months ended September 30, 2019:
Balances – December 31, 2018	$	1,286		$	2,237,948		$	1,565,201		$	(34,105	)	$	3,035		$	3,773,365
Net income		—			—			325,109			—			—			325,109
Earnings attributable to noncontrolling interest		—			—			(9	)		—			9			—
Total other comprehensive income		—			—			—			61,753			—			61,753
Common stock dividends, $0.69 per share		—			—			(88,887	)		—			—			(88,887	)
Noncontrolling interest cash contribution		—			—			—			—			80			80
Issuance of 67,350 shares of common stock for exercise of stock options		1			1,118			—			—			—			1,119
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		—			10,584			—			—			—			10,584
Forfeiture of 74,398 shares of unvested restricted common stock		(1	)		1			—			—			—			—
Balances – September 30, 2019	$	1,289		$	2,247,973		$	1,801,414		$	27,648		$	3,124		$	4,081,448

Bank OZK
Summary of Non-Interest Expense
Unaudited

	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
	(Dollars in thousands)
Salaries and employee benefits	$	53,119	$	48,376	$	153,003	$	140,801
Net occupancy and equipment		16,676		14,825		47,761		44,163
Other operating expenses:
Professional and outside services		8,647		9,204		23,629		25,874
Software and data processing		5,431		5,095		15,550		14,561
Deposit insurance and assessments		3,595		2,505		11,600		9,645
Telecommunication services		2,352		2,094		6,863		8,248
Postage and supplies		1,808		2,040		5,753		6,201
Advertising and public relations		1,557		2,067		4,964		5,421
ATM expense		1,604		1,277		3,766		3,363
Travel and meals		689		2,777		3,501		8,385
Loan collection and repossession expense		1,030		317		2,581		2,218
Writedowns of foreclosed and other assets		488		354		2,087		1,509
Amortization of intangibles		1,914		2,907		7,291		9,064
Other		6,731		7,076		21,670		17,271
Total non-interest expense	$	105,641	$	100,914	$	310,019	$	296,724

Bank OZK
Summary of Total Loans Outstanding
Unaudited


	September 30, 2020					December 31, 2019
	(Dollars in thousands)
Real estate:
Residential 1-4 family	$	966,462		5.0	%	$	998,632		5.7	%
Non-farm/non-residential		4,415,477		22.8			3,956,579		22.6
Construction/land development		7,406,447		38.2			6,391,429		36.4
Agricultural		227,143		1.2			230,076		1.3
Multifamily residential		1,346,385		7.0			1,194,192		6.8
Total real estate		14,361,914		74.2			12,770,908		72.8
Commercial and industrial		944,490		4.9			661,952		3.8
Consumer		2,581,035		13.3			2,934,534		16.8
Other		1,471,004		7.6			1,164,649		6.6
Total loans		19,358,443		100.0	%		17,532,043		100.0	%
Allowance for loan losses		(308,847	)				(108,525	)
Net loans	$	19,049,596				$	17,423,518

Bank OZK
Allowance for Credit Losses
Unaudited


	Allowance for Loan Losses			Reserve for Losses on Unfunded Loan Commitments		Total Allowance for Credit Losses
	(Dollars in thousands)
Three months ended September 30, 2020:
Balances – June 30, 2020	$	306,196		$	68,298	$	374,494
Net charge-offs		(4,421	)		—		(4,421	)
Provision for credit losses		7,072			128		7,200
Balances – September 30, 2020	$	308,847		$	68,426	$	377,273

Nine months ended September 30, 2020:
Balances – December 31, 2019	$	108,525		$	—	$	108,525
Adoption of Current Expected Credit Loss (CECL) methodology		39,588			54,924		94,512
Balances – January 1, 2020		148,113			54,924		203,037
Net charge-offs		(22,653	)		—		(22,653	)
Provision for credit losses		183,387			13,502		196,889
Balances – September 30, 2020	$	308,847		$	68,426	$	377,273

Three months ended September 30, 2019:
Balances – June 30, 2019	$	106,642		$	—	$	106,642
Net charge-offs		(5,495	)		—		(5,495	)
Provision for credit losses		7,854			—		7,854
Balances – September 30, 2019	$	109,001		$	—	$	109,001

Nine months ended September 30, 2019:
Balances – December 31, 2018	$	102,264		$	—	$	102,264
Net charge-offs		(14,566	)		—		(14,566	)
Provision for credit losses		21,303			—		21,303
Balances – September 30, 2019	$	109,001		$	—	$	109,001

Bank OZK
Summary of Deposits – By Account Type
Unaudited


	September 30, 2020				December 31, 2019
	(Dollars in thousands)
Non-interest bearing	$	3,908,207	18.4	%	$	2,795,251	15.1	%
Interest bearing:
Transaction (NOW)		2,973,192	14.0			2,706,426	14.7
Savings and money market		4,611,840	21.7			5,601,181	30.3
Time deposits less than $100		3,483,557	16.4			3,321,446	18.0
Time deposits of $100 or more		6,310,609	29.5			4,049,955	21.9
Total deposits	$	21,287,405	100.0	%	$	18,474,259	100.0	%

Summary of Deposits – By Customer Type
Unaudited


	September 30, 2020				December 31, 2019
	(Dollars in thousands)
Consumer	$	10,909,452	51.2	%	$	7,526,014	40.7	%
Commercial		5,963,072	28.0			4,334,366	23.5
Public Funds		2,330,726	10.9			3,782,415	20.5
Brokered		1,580,165	7.4			2,115,193	11.4
Reciprocal		503,990	2.5			716,271	3.9
Total deposits	$	21,287,405	100.0	%	$	18,474,259	100.0	%

Bank OZK
Selected Consolidated Financial Data
Unaudited

	Three Months Ended September 30,									Nine Months Ended September 30,
	2020			2019			% Change			2020			2019			% Change
	(Dollars in thousands, except per share amounts)
Income statement data:
Net interest income	$	224,657		$	218,780			2.7	%	$	651,024		$	669,204			(2.7	)%
Provision for credit losses		7,200			7,854			(8.3	)		196,889			21,303			824.2
Non-interest income		26,676			26,446			0.9			75,947			77,121			(1.5	)
Non-interest expense		105,641			100,914			4.7			310,019			296,724			4.5
Net income available to common stockholders		109,253			103,891			5.2			171,385			325,100			(47.3	)
Pre-tax pre-provision net revenue ⁽¹⁾		145,692			144,312			1.0			416,952			449,601			(7.3	)
Common share and per common share data:
Net income per share − diluted	$	0.84		$	0.81			3.7	%	$	1.32		$	2.52			(47.6	)%
Net income per share − basic		0.84			0.81			3.7			1.33			2.52			(47.2	)
Dividends per share		0.2725			0.24			13.5			0.8025			0.69			16.3
Book value per share		32.37			31.63			2.3			32.37			31.63			2.3
Tangible book value per share⁽¹⁾		27.13			26.30			3.2			27.13			26.30			3.2
Weighted-average diluted shares outstanding (thousands)		129,470			129,012						129,398			128,995
End of period shares outstanding (thousands)		129,342			128,946						129,342			128,946
Balance sheet data at period end:
Total assets	$	26,888,308		$	23,402,679			14.9	%	$	26,888,308		$	23,402,679			14.9	%
Total loans		19,358,443			17,734,851			9.2			19,358,443			17,734,851			9.2
Non-purchased loans		18,419,958			16,307,621			13.0			18,419,958			16,307,621			13.0
Purchased loans		938,485			1,427,230			(34.2	)		938,485			1,427,230			(34.2	)
Allowance for loan losses		308,847			109,001			183.3			308,847			109,001			183.3
Foreclosed assets		16,543			33,319			(50.3	)		16,543			33,319			(50.3	)
Investment securities − AFS		3,468,243			2,414,722			43.6			3,468,243			2,414,722			43.6
Goodwill and other intangible assets, net		677,251			687,397			(1.5	)		677,251			687,397			(1.5	)
Deposits		21,287,405			18,440,078			15.4			21,287,405			18,440,078			15.4
Other borrowings		750,949			301,421			149.1			750,949			301,421			149.1
Subordinated notes		223,950			223,567			0.2			223,950			223,567			0.2
Subordinated debentures		120,335			119,775			0.5			120,335			119,775			0.5
Unfunded balance of closed loans		11,604,614			11,429,918			1.5			11,604,614			11,429,918			1.5
Reserve for losses on unfunded loan commitments		68,426			—		NM				68,426			—		NM
Total common stockholders’ equity		4,186,285			4,078,324			2.6			4,186,285			4,078,324			2.6
Net unrealized gains on investment securities AFS included in common stockholders' equity		61,116			27,648						61,116			27,648
Loan (including purchased loans) to deposit ratio		90.94	%		96.18	%					90.94	%		96.18	%
Selected ratios:
Return on average assets⁽²⁾		1.63	%		1.81	%					0.90	%		1.92	%
Return on average common stockholders’ equity⁽²⁾		10.48			10.22						5.55			11.07
Return on average tangible common stockholders’ equity^{(1) (2)}		12.52			12.33						6.65			13.44
Average common equity to total average assets		15.56			17.69						16.23			17.31
Net interest margin – FTE⁽²⁾		3.69			4.26						3.79			4.41
Efficiency ratio		41.77			40.98						42.38			39.58
Net charge-offs to average non-purchased loans^{(2) (3)}		0.09			0.07						0.07			0.08
Net charge-offs to average total loans⁽²⁾		0.09			0.12						0.16			0.11
Nonperforming loans to total loans⁽⁴⁾		0.15			0.17						0.15			0.17
Nonperforming assets to total assets⁽⁴⁾		0.17			0.26						0.17			0.26
Allowance for loan losses to total loans ⁽⁵⁾		1.60			0.61						1.60		0.61
Other information:
Non-accrual loans⁽⁴⁾	$	27,181		$	25,552					$	27,181		$	25,552
Accruing loans − 90 days past due⁽⁴⁾		—			—						—			—
Troubled and restructured non-purchased loans − accruing⁽⁴⁾		1,251			1,510						1,251			1,510

⁽¹⁾Calculations of pre-tax pre-provision net revenue, 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 reserve for losses on unfunded loan commitments.
NM – Not meaningful

Selected Consolidated Financial Data (continued)
Unaudited

		Three Months Ended
		September 30,			June 30,
		2020			2020			% Change
	(Dollars in thousands, except per share amounts)
Income statement data:
Net interest income		$	224,657		$	216,593			3.7	%
Provision for credit losses			7,200			72,026			(90.0	)
Non-interest income			26,676			21,591			23.6
Non-interest expense			105,641			100,953			4.6
Net income available to common stockholders			109,253			50,266			117.3
Pre-tax pre-provision net revenue⁽¹⁾			145,692			137,231			6.2
Common share and per common share data:
Net income per share − diluted		$	0.84		$	0.39			115.4	%
Net income per share − basic			0.84			0.39			115.4
Dividends per share			0.2725			0.27			0.9
Book value per share			32.37			31.78			1.9
Tangible book value per share ⁽¹⁾			27.13			26.53			2.3
Weighted-average diluted shares outstanding (thousands)			129,470			129,399
End of period shares outstanding (thousands)			129,342			129,350
Balance sheet data at period end:
Total assets		$	26,888,308		$	26,380,409			1.9	%
Total loans			19,358,443			19,311,078			0.2
Non-purchased loans			18,419,958			18,247,431			0.9
Purchased loans			938,485			1,063,647			(11.8	)
Allowance for loan losses			308,847			306,196			0.9
Foreclosed assets			16,543			18,328			(9.7	)
Investment securities − AFS			3,468,243			3,299,944			5.1
Goodwill and other intangible assets, net			677,251			679,166			(0.3	)
Deposits			21,287,405			20,723,598			2.7
Other borrowings			750,949			903,696			(16.9	)
Subordinated notes			223,950			223,854			0.1
Subordinated debentures			120,335			120,194			0.1
Unfunded balance of closed loans			11,604,614			11,411,441			1.7
Reserve for losses on unfunded loan commitments			68,426			68,298			0.2
Total common stockholders’ equity			4,186,285			4,110,666			1.8
Net unrealized gains on investment securities AFS included in common stockholders' equity			61,116			63,177
Loan (including purchased loans) to deposit ratio			90.94	%		93.18	%
Selected ratios:
Return on average assets⁽²⁾			1.63	%		0.78	%
Return on average common stockholders’ equity⁽²⁾			10.48			4.92
Return on average tangible common stockholders’ equity^{(1) (2)}			12.52			5.89
Average common equity to total average assets			15.56			15.93
Net interest margin – FTE⁽²⁾			3.69			3.74
Efficiency ratio			41.77			42.07
Net charge-offs to average non-purchased loans^{(2) (3)}			0.09			0.05
Net charge-offs to average total loans⁽²⁾			0.09			0.29
Nonperforming loans to total loans⁽⁴⁾			0.15			0.18
Nonperforming assets to total assets⁽⁴⁾			0.17			0.19
Allowance for loan losses to total loans ⁽⁵⁾			1.60			1.59
Other information:
Non-accrual loans⁽⁴⁾		$	27,181		$	31,083
Accruing loans − 90 days past due⁽⁴⁾			—			—
Troubled and restructured non-purchased loans − accruing⁽⁴⁾			1,251			934

⁽¹⁾Calculations of pre-tax pre-provision net revenue, 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 reserve for losses on unfunded loan commitments.

Bank OZK
Supplemental Quarterly Financial Data
Unaudited

	12/31/18			3/31/19			6/30/19			9/30/19			12/31/19			3/31/20			6/30/20			9/30/20
	(Dollars in thousands, except per share amounts)
Earnings Summary:
Net interest income	$	228,382		$	225,888		$	224,536		$	218,780		$	214,977		$	209,775		$	216,593		$	224,657
Federal tax (FTE) adjustment		1,219			1,207			1,136			1,038			1,028			1,133			1,753			1,605
Net interest income (FTE)		229,601			227,095			225,672			219,818			216,005			210,908			218,346			226,262
Provision for credit losses		(7,271	)		(6,681	)		(6,769	)		(7,854	)		(4,938	)		(117,663	)		(72,026	)		(7,200	)
Non-interest income		27,560			24,072			26,603			26,446			30,406			27,680			21,591			26,676
Non-interest expense		(94,893	)		(96,678	)		(99,131	)		(100,914	)		(104,406	)		(103,425	)		(100,953	)		(105,641	)
Pretax income (FTE)		154,997			147,808			146,375			137,496			137,067			17,500			66,958			140,097
FTE adjustment		(1,219	)		(1,207	)		(1,136	)		(1,038	)		(1,028	)		(1,133	)		(1,753	)		(1,605	)
Provision for income taxes		(38,750	)		(35,889	)		(34,726	)		(32,574	)		(35,240	)		(4,509	)		(14,948	)		(29,251	)
Noncontrolling interest		3			(6	)		(10	)		7			7			8			9			12
Net income available to common stockholders	$	115,031		$	110,706		$	110,503		$	103,891		$	100,806		$	11,866		$	50,266		$	109,253
Earnings per common share – diluted	$	0.89		$	0.86		$	0.86		$	0.81		$	0.78		$	0.09		$	0.39		$	0.84
Non-interest Income:
Service charges on deposit accounts	$	10,585		$	9,722		$	10,291		$	10,827		$	10,933		$	10,009		$	8,281		$	9,427
Trust income		1,821			1,730			1,839			1,975			2,010			1,939			1,759			1,936
BOLI income:
Increase in cash surrender value		5,269			5,162			5,178			5,208			5,167			5,067			5,057			5,081
Death benefits		482			—			—			206			2,989			608			—			—
Loan service, maintenance and other fees		5,245			4,874			4,565			4,197			4,282			3,716			3,394			3,351
Other income from purchased loans		2,370			795			1,455			674			759			—			—			—
Gains on sales of other assets		465			284			402			189			1,358			161			621			891
Net gains on investment securities		—			—			713			—			—			2,223			—			2,244
Other		1,323			1,505			2,160			3,170			2,908			3,957			2,479			3,746
Total non-interest income	$	27,560		$	24,072		$	26,603		$	26,446		$	30,406		$	27,680		$	21,591		$	26,676
Non-interest Expense:
Salaries and employee benefits	$	41,837		$	44,868		$	47,558		$	48,376		$	52,050		$	51,473		$	48,410		$	53,119
Net occupancy and equipment		14,027			14,750			14,587			14,825			14,855			15,330			15,756			16,676
Other operating expenses		39,029			37,060			36,986			37,713			37,501			36,622			36,787			35,846
Total non-interest expense	$	94,893		$	96,678		$	99,131		$	100,914		$	104,406		$	103,425		$	100,953		$	105,641
Balance Sheet Data:
Total assets	$	22,388,030		$	23,005,652		$	22,960,731		$	23,402,679		$	23,555,728		$	24,565,810		$	26,380,409		$	26,888,308
Non-purchased loans		15,073,791			15,610,681			15,786,809			16,307,621			16,224,539			17,030,378			18,247,431			18,419,958
Purchased loans		2,044,032			1,864,715			1,698,396			1,427,230			1,307,504			1,197,826			1,063,647			938,485
Investment securities – AFS		2,862,340			2,769,602			2,548,489			2,414,722			2,277,389			2,816,556			3,299,944			3,468,243
Deposits		17,938,415			18,476,868			18,186,215			18,440,078			18,474,259			18,809,190			20,723,598			21,287,405
Unfunded balance of closed loans		11,364,975			11,544,218			11,167,055			11,429,918			11,325,598			11,334,737			11,411,441			11,604,614
Common stockholders' equity		3,770,330			3,882,643			3,993,247			4,078,324			4,150,351			4,083,150			4,110,666			4,186,285

Bank OZK
Supplemental Quarterly Financial Data (Continued)
Unaudited

	12/31/18			3/31/19			6/30/19			9/30/19			12/31/19			3/31/20			6/30/20			9/30/20
	(Dollars in thousands, except per share amounts)
Allowance for Credit Losses:
Balance at beginning of period	$	98,200		$	102,264		$	105,954		$	106,642		$	109,001		$	108,525		$	316,409		$	374,494
Adoption of CECL⁽¹⁾ methodology		—			—			—			—			—			94,512			—			—
Net charge-offs		(3,207	)		(2,991	)		(6,081	)		(5,495	)		(5,414	)		(4,291	)		(13,941	)		(4,421	)
Provision for credit losses		7,271			6,681			6,769			7,854			4,938			117,663			72,026			7,200
Balance at end of period	$	102,264		$	105,954		$	106,642		$	109,001		$	108,525		$	316,409		$	374,494		$	377,273
Allowance for loan losses	$	102,264		$	105,954		$	106,642		$	109,001		$	108,525		$	238,737		$	306,196		$	308,847
Reserve for losses on unfunded loan commitments		—			—			—			—			—			77,672			68,298			68,426
Total allowance for credit losses	$	102,264		$	105,954		$	106,642		$	109,001		$	108,525		$	316,409		$	374,494		$	377,273
Selected Ratios:
Net interest margin – FTE⁽²⁾		4.55	%		4.53	%		4.45	%		4.26	%		4.15	%		3.96	%		3.74	%		3.69	%
Efficiency ratio		36.90			38.49			39.30			40.98			42.37			43.35			42.07			41.77
Net charge-offs to average non-purchased loans^{(2) (3)}		0.06			0.05			0.12			0.07			0.10			0.08			0.05			0.09
Net charge-offs to average total loans⁽²⁾		0.07			0.07			0.14			0.12			0.12			0.10			0.29			0.09
Nonperforming loans to total loans⁽⁴⁾		0.23			0.22			0.15			0.17			0.15			0.16			0.18			0.15
Nonperforming assets to total assets⁽⁴⁾		0.23			0.21			0.25			0.26			0.18			0.19			0.19			0.17
Allowance for loan losses to total loans ⁽⁵⁾		0.60			0.61			0.61			0.61			0.62			1.31			1.59			1.60
Loans past due 30 days or more, including past due non-accrual loans, to total loans⁽⁴⁾		0.28			0.28			0.13			0.14			0.19			0.18			0.13			0.13

(1) Current Expected Credit Loss.

(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.

Bank OZK
Average Consolidated Balance Sheets and Net Interest Analysis – FTE
Unaudited

	Three Months Ended September 30,														Nine Months Ended September 30,
	2020							2019							2020							2019
	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
Earning assets:
Interest earning deposits and federal funds sold	$	1,705,652	$	532		0.12	%	$	486,174	$	2,647		2.16	%	$	1,459,814	$	5,237		0.48	%	$	242,476	$	4,001		2.21	%
Investment securities:
Taxable		2,216,041		9,666		1.74			2,027,267		12,511		2.45			1,979,368		31,480		2.12			2,169,218		40,992		2.53
Tax-exempt – FTE		1,193,407		6,573		2.19			462,927		4,256		3.65			944,552		18,527		2.62			495,694		13,835		3.73
Non-purchased loans – FTE		18,311,166		236,846		5.15			15,934,033		245,099		6.10			17,602,817		701,892		5.33			15,727,447		741,375		6.30
Purchased loans		999,438		16,269		6.48			1,553,398		26,042		6.65			1,132,334		54,743		6.46			1,760,740		84,756		6.44
Total earning assets – FTE		24,425,704		269,886		4.40			20,463,799		290,555		5.63			23,118,885		811,879		4.69			20,395,575		884,959		5.80
Non-interest earning assets		2,235,853							2,323,028							2,302,225							2,277,584
Total assets	$	26,661,557						$	22,786,827						$	25,421,110						$	22,673,159
LIABILITIES AND STOCKHOLDERS’ EQUITY
Interest bearing liabilities:
Deposits:
Savings and interest bearing transaction	$	7,581,707	$	5,496		0.29	%	$	8,792,998	$	30,108		1.36	%	$	7,742,865	$	32,945		0.57	%	$	9,318,915	$	103,721		1.49	%
Time deposits of $100 or more		6,101,542		20,858		1.36			3,564,862		19,803		2.20			5,259,616		66,813		1.70			3,292,375		52,056		2.11
Other time deposits		3,664,931		11,919		1.29			3,069,997		16,337		2.11			3,584,047		41,448		1.54			2,697,660		40,950		2.03
Total interest bearing deposits		17,348,180		38,273		0.88			15,427,857		66,248		1.70			16,586,528		141,206		1.14			15,308,950		196,727		1.72
Repurchase agreements with customers		7,093		4		0.24			9,037		5		0.24			7,686		17		0.29			14,062		39		0.37
Other borrowings ⁽¹⁾		793,350		1,156		0.58			29,422		90		1.21			711,408		2,168		0.41			122,254		1,497		1.64
Subordinated notes		223,899		3,207		5.70			223,516		3,216		5.71			223,801		9,551		5.70			223,419		9,542		5.71
Subordinated debentures ⁽¹⁾		120,253		984		3.26			119,700		1,178		3.90			120,119		3,420		3.80			119,558		4,570		5.11
Total interest bearing liabilities		18,492,775		43,624		0.94			15,809,532		70,737		1.78			17,649,542		156,362		1.18			15,788,243		212,375		1.80
Non-interest bearing liabilities:
Non-interest bearing deposits		3,764,063							2,728,596							3,391,162							2,736,350
Other non-interest bearing liabilities		253,211							213,505							251,723							220,126
Total liabilities		22,510,049							18,751,633							21,292,427							18,744,719
Common stockholders’ equity		4,148,409							4,032,066							4,125,578							3,925,321
Noncontrolling interest		3,099							3,128							3,105							3,119
Total liabilities and stockholders’ equity	$	26,661,557						$	22,786,827						$	25,421,110						$	22,673,159
Net interest income – FTE			$	226,262						$	219,818						$	655,517						$	672,584
Net interest margin – FTE						3.69	%						4.26	%						3.79	%						4.41	%

⁽¹⁾The interest expense and the rates for “other borrowings” and for “subordinated debentures” were affected by capitalized interest. Capitalized interest included in other borrowings totaled $0.03 million for the third quarter and $0.65 million for the first nine months of 2020 compared to $0.11 million for the third quarter and $0.86 million for the first nine months of 2019. In the absence of this interest capitalization, the rates on other borrowings would have been 0.59% for the third quarter and 0.53% for the first nine months of 2020 and 2.69% for the third quarter and 2.57% for the first nine months of 2019. Capitalized interest included in subordinated debentures totaled $0.01 million for the third quarter and $0.18 million for the first nine months of 2020, compared to $0.45 million for both the third quarter and first nine months of 2019. In the absence of this interest capitalization, the rates on subordinated debentures would have been 3.27% for the third quarter and 4.00% for the first nine months of 2020 and 5.39% for the third quarter and 5.61% for the first nine months of 2019.

Bank OZK
Reconciliation of Non-GAAP Financial Measures

Calculation of Average Tangible Common Stockholders’ Equity
and the Annualized Return on Average Tangible Common Stockholders’ Equity
Unaudited


	Three Months Ended									Nine Months Ended
	September 30,						June 30,			September 30,
	2020			2019			2020			2020			2019
	(Dollars in thousands)
Net income available to common stockholders	$	109,253		$	103,891		$	50,266		$	171,385		$	325,100
Average common stockholders’ equity before noncontrolling interest	$	4,148,409		$	4,032,066		$	4,110,038		$	4,125,578		$	3,925,321
Less average intangible assets:
Goodwill		(660,789	)		(660,789	)		(660,789	)		(660,789	)		(660,789	)
Core deposit and other intangible assets, net of accumulated amortization		(17,461	)		(28,275	)		(19,563	)		(19,803	)		(31,290	)
Total average intangibles		(678,250	)		(689,064	)		(680,352	)		(680,592	)		(692,079	)
Average tangible common stockholders’ equity	$	3,470,159		$	3,343,002		$	3,429,686		$	3,444,986		$	3,233,242
Return on average common stockholders’ equity⁽¹⁾		10.48	%		10.22	%		4.92	%		5.55	%		11.07	%
Return on average tangible common stockholders’ equity⁽¹⁾		12.52	%		12.33	%		5.89	%		6.65	%		13.44	%

⁽¹⁾ Ratios for interim periods annualized based on actual days.

Calculation of Total Tangible Common Stockholders’ Equity
and Tangible Book Value per Common Share
Unaudited

	September 30,						June 30,
	2020			2019			2020
	(In thousands, except per share amounts)
Total common stockholders’ equity before noncontrolling interest	$	4,186,285		$	4,078,324		$	4,110,666
Less intangible assets:
Goodwill		(660,789	)		(660,789	)		(660,789	)
Core deposit and other intangible assets, net of accumulated amortization		(16,462	)		(26,608	)		(18,377	)
Total intangibles		(677,251	)		(687,397	)		(679,166	)
Total tangible common stockholders' equity	$	3,509,034		$	3,390,927		$	3,431,500
Shares of common stock outstanding		129,342			128,946			129,350
Book value per common share	$	32.37		$	31.63		$	31.78
Tangible book value per common share	$	27.13		$	26.30		$	26.53

Calculation of Total Tangible Common Stockholders’ Equity
and the Ratio of Total Tangible Common Stockholders’ Equity
to Total Tangible Assets
Unaudited

	September 30,
	2020			2019
	(Dollars in thousands)
Total common stockholders’ equity before noncontrolling interest	$	4,186,285		$	4,078,324
Less intangible assets:
Goodwill		(660,789	)		(660,789	)
Core deposit and other intangible assets, net of accumulated amortization		(16,462	)		(26,608	)
Total intangibles		(677,251	)		(687,397	)
Total tangible common stockholders' equity	$	3,509,034		$	3,390,927
Total assets	$	26,888,308		$	23,402,679
Less intangible assets:
Goodwill		(660,789	)		(660,789	)
Core deposit and other intangible assets, net of accumulated amortization		(16,462	)		(26,608	)
Total intangibles		(677,251	)		(687,397	)
Total tangible assets	$	26,211,057		$	22,715,282
Ratio of total common stockholders’ equity to total assets		15.57	%		17.43	%
Ratio of total tangible common stockholders’ equity to total tangible assets		13.39	%		14.93	%

Calculation of Pre-Tax Pre-Provision Net Revenue

Unaudited

	Three Months Ended						Nine Months Ended
	September 30,				June 30,		September 30,
	2020		2019		2020		2020		2019
	(Dollars in thousands)
Income before taxes	$	138,492	$	136,458	$	65,205	$	220,063	$	428,298
Provision for credit losses		7,200		7,854		72,026		196,889		21,303
Pre-tax pre-provision net revenue	$	145,692	$	144,312	$	137,231	$	416,952	$	449,601

Source: Bank OZK

Bank OZK Announces Third Quarter 2020 Earnings

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Bank OZK Announces Third Quarter 2020 Earnings

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