Bank OZK Announces Record Fourth Quarter and Full Year 2024 Earnings

LITTLE ROCK, Ark., Jan. 16, 2025 (GLOBE NEWSWIRE) — Bank OZK (the “Bank”) (Nasdaq: OZK) today announced that net income available to common stockholders for the fourth quarter of 2024 was $178.1 million, its ninth consecutive quarterly record and a 4.1% increase from $171.1 million for the fourth quarter of 2023. For the full year of 2024, net income available to common stockholders was a record $700.3 million, a 3.8% increase from $674.6 million for the full year of 2023.

Diluted earnings per common share for the fourth quarter of 2024 were $1.56, its ninth consecutive quarterly record and a 4.0% increase from $1.50 for the fourth quarter of 2023. For the full year of 2024, diluted earnings per common share were a record $6.14, a 4.6% increase from $5.87 for the full year of 2023.

Pre-tax pre-provision net revenue (“PPNR”) was $272.2 million for the fourth quarter of 2024, a 3.7% increase from $262.6 million for the fourth quarter of 2023, but a 3.7% decrease from the third quarter of 2024. For the full year of 2024, PPNR was a record $1.11 billion, a 7.2% increase from $1.03 billion for the full year of 2023. The calculation of PPNR and the reconciliation to generally accepted accounting principles (“GAAP”) are included in the schedules accompanying this release.

Provision for credit losses was $37.2 million for the fourth quarter of 2024 compared to $43.8 million for the fourth quarter of 2023, while our net charge-offs were only $12.4 million and $4.1 million, respectively. For the full year of 2024, provision for credit losses was $175.6 million compared to $165.5 million for the full year of 2023, while our net charge-offs were only $57.4 million and $29.5 million, respectively. The Bank’s allowance for credit losses (“ACL”) was $619.4 million at December 31, 2024, an increase of $118.1 million or 23.6% compared to $501.2 million at December 31, 2023.

The Bank’s annualized returns on average assets, average common stockholders’ equity and average tangible common stockholders’ equity for the fourth quarter of 2024 were 1.87%, 13.33% and 15.22%, respectively, compared to 2.04%, 14.58% and 16.99%, respectively, for the fourth quarter of 2023. The Bank’s returns on average assets, average common stockholders’ equity and average tangible common stockholders’ equity for the full year of 2024 were 1.91%, 13.77% and 15.82%, respectively, compared to 2.20%, 14.93% and 17.50%, respectively, for the full year of 2023. The calculation of the Bank’s 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.

George Gleason, Chairman and Chief Executive Officer stated, “We are very pleased to have achieved record net income and earnings per share in each quarter of 2024 and for the full year. Our results for the quarter just ended were our ninth consecutive quarter of record net income and record earnings per share. Our consistent achievement of record earnings, while maintaining sound asset quality, has allowed us to accumulate capital, increase dividends and significantly expand and grow our business.”

KEY BALANCE SHEET METRICS

Loans were $29.97 billion at December 31, 2024, a 13.3% increase from $26.46 billion at December 31, 2023. Deposits were $31.04 billion at December 31, 2024, a 13.3% increase from $27.41 billion at December 31, 2023. Total assets were $38.26 billion at December 31, 2024, an 11.7% increase from $34.24 billion at December 31, 2023.

Common stockholders’ equity was $5.37 billion at December 31, 2024, an 11.8% increase from $4.80 billion at December 31, 2023. Tangible common stockholders’ equity was $4.71 billion at December 31, 2024, a 13.7% increase from $4.14 billion at December 31, 2023.

Book value per common share was $47.30 at December 31, 2024, an 11.5% increase from $42.42 at December 31, 2023. Tangible book value per common share was $41.48 at December 31, 2024, a 13.4% increase from $36.58 at December 31, 2023.

The Bank’s strong earnings and earnings retention rate, among other factors, have contributed to its robust capital ratios. The Bank’s ratio of total common stockholders’ equity to total assets was 14.03% at December 31, 2024, compared to 14.02% at December 31, 2023. Its ratio of total tangible common stockholders’ equity to total tangible assets was 12.52% at December 31, 2024, compared to 12.33% at December 31, 2023. The calculations of the Bank’s total common stockholders’ equity, tangible common stockholders’ equity, tangible book value per common share, and ratio of total tangible common stockholders’ equity to total tangible assets and the reconciliations to GAAP are included in the schedules accompanying this release.

ASSET QUALITY

The Bank’s ratio of nonperforming loans to loans was 0.44% at December 31, 2024, compared to 0.23% as of December 31, 2023. The Bank’s ratio of nonperforming assets to total assets was 0.53% at December 31, 2024, compared to 0.38% as of December 31, 2023. The Bank’s annualized ratio of net charge-offs of loans to average loans was 0.16% for the fourth quarter and 0.20% for the year ended December 31, 2024, compared to 0.06% for the fourth quarter and 0.13% for the year ended December 31, 2023.

MANAGEMENT COMMENTS, CONFERENCE CALL, TRANSCRIPT AND FILINGS

In connection with this release, the Bank released management comments on its quarterly results, which are available at https://ir.ozk.com. This release should be read in conjunction with management comments on the fourth quarter and full year 2024 results.

Management will conduct a conference call to take questions at 10:00 a.m. CT (11:00 a.m. ET) on Friday, January 17, 2025. Interested parties may access the conference call live via webcast on the Bank’s investor relations website at https://ir.ozk.com/news/event-calendar, or may participate via telephone by registering using this online form. Upon registration, all telephone participants will receive the dial-in number along with a unique PIN number that can be used to access the call. A replay of the conference call webcast will be archived on the Bank’s website for at least 30 days.

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 ir.ozk.com. To receive automated email alerts for these materials please visit https://ir.ozk.com/other/email-alerts 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 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 adjust GAAP financial measures to exclude certain financial measures, such as, preferred stock, goodwill, provision for income taxes, provision for credit loses, and other measures. 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 obtaining regulatory or other approvals, delays in acquiring satisfactory sites, obtaining permits and designing, constructing and opening new offices, relocating, selling or closing existing offices, or 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; recently enacted and potential new 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; changes as a result of the recent U.S. presidential and congressional elections; impacts of potential changes in U.S. tax, tariff and immigration laws, regulations and policies; the costs and expenses to comply with new and/or existing legislation and regulatory requirements; uncertainty regarding changes in U.S. government monetary and fiscal policy; the impact of any U.S. federal government shutdown or budgetary crisis; FDIC special assessments or changes to regular assessments; the ability to keep pace with technological changes, including changes regarding artificial intelligence and maintaining cybersecurity; the impact of any failure in, or breach of, our operational or security systems or infrastructure, or those of third parties with whom we do business or others, including as a result of cyberattacks or an increase in the incidence or severity of fraud, illegal payments, security breaches or other illegal acts impacting the Bank, its customers or others; natural disasters; acts of war or terrorism; the potential impact of continuing inflationary pressures; the potential impact of supply chain disruptions; national or international political instability or military conflict, including the conflict in the Middle East and the ongoing war in Ukraine; competition for and costs of recruiting and retaining qualified personnel; impairment of our goodwill; adoption of new accounting standards, 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 communication or as detailed from time to time in our public filings, including those factors described in the disclosures under the headings “Forward-Looking Information” and “Item 1A. Risk Factors” in our most recent Annual Report on Form 10-K for the year ended December 31, 2023 and our 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 described 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. Established in 1903, Bank OZK conducts banking operations in more than 240 offices in nine states including Arkansas, Georgia, Florida, North Carolina, Texas, Tennessee, New York, California and Mississippi and had $38.26 billion in total assets as of December 31, 2024. For more information, visit www.ozk.com.

(1) Effective January 1, 2024, the Bank adopted ASU 2023-02, Investments-Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method, which resulted in the amortization of the Bank’s CRA and tax credit investments being included in income tax expense instead of non-interest expense.

⁽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, total tangible common stockholders’ equity to total tangible assets and the reconciliations to GAAP are included in the schedules accompanying this release.
⁽²⁾  Ratios for interim periods annualized based on actual days.

⁽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, total tangible common stockholders’ equity to total tangible assets and the reconciliations to GAAP are included in the schedules accompanying this release.
⁽²⁾  Ratios for interim periods annualized based on actual days.

⁽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.

⁽¹⁾ The interest expense and the rates paid related to “other borrowings” include capitalized interest which totaled $0.8 million and $2.3 million for the fourth quarter and full year of 2024. Capitalized interest was not material for the fourth quarter and full year of 2023. Excluding capitalized interest from the “other borrowings” expense calculation would result in a rate of 4.76% and 5.12% for the fourth quarter and full year of 2024.
⁽²⁾ Core spread is the difference between the yield on the Bank’s loans-FTE and the rate on its interest bearing deposits.

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