Bank OZK Announces Third Quarter 2022 Earnings

Bank OZK is pleased to report our results for the third quarter of 2022. Highlights include:

  • Net Income. Our net income available to common stockholders was $128.3 million and our diluted earnings per common share were $1.08. Our growth in both funded and unfunded loan balances during the quarter contributed to a higher provision for credit losses, which impacted net income.
  • Pre-tax Pre-provision Net Revenue1 (“PPNR”). Our PPNR was a quarterly record $208.1 million, an increase of $25.3 million from the second quarter of 2022.
  • Net Interest Income. Our net interest income increased to a quarterly record $294.6 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 5.73%, contributing to the increase in our net interest margin to 5.03%.
  • Quarterly Origination Volume and Loan Growth. Our Real Estate Specialties Group (“RESG”) originated $4.35 billion of loans during the quarter, which was its fourth consecutive quarter of record originations. This contributed to an increase in our unfunded loan commitments to $20.09 billion at September 30, 2022. In addition, our outstanding balance of total loans grew $0.77 billion, or 4.1% 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 both non-purchased loans and total loans. Our September 30, 2022 ratios of nonperforming non-purchased loans to total non-purchased loans and nonperforming assets to total assets2 were just 0.14% and 0.13%, respectively.
  • Efficiency Ratio. Our efficiency ratio for the quarter was 35.5%, among the best in the industry.
  • Stock Repurchases & Dividend Growth. During the quarter, we repurchased approximately 1.2 million shares of our common stock for a total of $47.7 million. Cumulatively, from adoption of our stock repurchase program in July 2021 through September 30, 2022, we have repurchased approximately 12.1 million, or over 9%, of outstanding shares of our common stock for $520.2 million. We recently increased the quarterly dividend on our common stock for the 49th consecutive quarter.

George Gleason, Chairman and CEO Comment in Earnings Release

“We are pleased to report our strong results for the third quarter of 2022. Our results were highlighted by our fourth consecutive quarter of record RESG loan originations and solid growth in RESG’s funded loans, along with meaningful contributions to growth from our Community Banking and other lending teams. This reflects our dual focus on both organic loan growth and increased portfolio diversification. Our 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 Third Quarter 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.