Bank OZK Announces Fourth Quarter and Full Year 2022 Earnings

Bank OZK is pleased to report our results for the fourth quarter, which included numerous record financial metrics. Highlights include:

  • Net Income. Our net income available to common stockholders was $158.8 million and our diluted earnings per common share were $1.34. Growth in both funded and unfunded loan balances during the quarter contributed to our provision for credit losses, which impacted net income.
  • Pre-tax Pre-provision Net Revenue1 (“PPNR”). Our PPNR was $241.0 million, an increase of $32.9 million from the third quarter of 2022.
  • Net Interest Income. Our net interest income increased $37.9 million from the third quarter of 2022 to $332.5 million due to a combination of net interest margin expansion and strong loan growth. Our core spread, which is how we describe the difference between our yield on non-purchased loans and our cost of interest-bearing deposits (“COIBD”), increased to 6.05%, contributing to the increase in our net interest margin to 5.46%.
  • Quarterly Origination Volume and Loan Growth. Our Real Estate Specialties Group (“RESG”) originated $2.81 billion of loans during the quarter, which contributed to an increase in our unfunded loan commitments to $21.06 billion at December 31, 2022. In addition, our outstanding balance of total loans grew $1.27 billion, or 6.5% not annualized, during the quarter just ended.
  • Asset Quality. Our ongoing focus on asset quality resulted in annualized net charge-off ratios for the quarter just ended of 0.09% for non-purchased loans and 0.06% for total loans. Our December 31, 2022 ratios of nonperforming non-purchased loans to total non-purchased loans and nonperforming assets to total assets2 were 0.22% and 0.19%, respectively.
  • Efficiency Ratio. Our efficiency ratio for the quarter was 32.8%, among the best in the industry.
  • Stock Repurchases & Dividend Growth. During the quarter, we repurchased approximately 575,000 shares of our common stock for $23.2 million. For the full year of 2022, we repurchased approximately 8.37 million shares of our common stock for $350.0 million. We recently increased our quarterly dividend on common stock for the 50th consecutive quarter.

George Gleason, Chairman and CEO Comment in Earnings Release

“We are pleased to report our strong results for the fourth quarter and full year of 2022. Our high level of profitability, strong capital and liquidity, disciplined credit culture and outstanding team have us well positioned for the current environment and the longer term.”

Full Report and Management Comments

Bank OZK’s Earnings Release and Management Comments for the fourth quarter and full year 2022 are available here.


1 The calculation of the Bank’s PPNR and the reconciliation to generally accepted accounting principles (“GAAP”) are included in the schedule at the end of this presentation.

2 Excludes purchased loans, except for their inclusion in total assets.