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Bank OZK Announces Record Fourth Quarter and Full Year 2024 Earnings

1. Bank OZK recorded $178.1M net income for Q4 2024, rising 4.1%. 2. 2024 full-year net income was $700.3M, a 3.8% increase. 3. Loans increased by 13.3% to $29.97 billion year-over-year. 4. Provision for credit losses decreased from $43.8M to $37.2M in Q4. 5. Nonperforming loans ratio rose to 0.44%, indicating asset quality concern.

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Why Bullish?

OZK's consistent record earnings suggest strong financial health, potentially boosting investor confidence.

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The article provides key financial results that can directly influence investor perception of OZK.

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Immediate market reaction expected from quarterly results, but sustainability needs validation.

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OZKBACWFCUSB
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.  Bank OZKConsolidated Balance SheetsUnaudited   December 31,   2024   2023   (Dollars in thousands)ASSETS    Cash and cash equivalents $2,781,101  $2,149,529 Investment securities – available for sale (“AFS”)  2,836,150   3,244,371 Federal Home Loan Bank of Dallas (“FHLB”) and other bankers’ bank stocks  39,930   50,400 Loans  29,968,867   26,459,075 Allowance for loan losses  (465,547)  (339,394)Net Loans  29,503,320   26,119,681 Premises and equipment, net  739,111   676,821 Foreclosed assets  69,381   61,720 Accrued interest receivable  174,025   170,110 Bank owned life insurance (“BOLI”)  829,405   808,490 Goodwill  660,789   660,789 Other, net  625,640   295,546 Total assets $38,258,852  $34,237,457      LIABILITIES AND STOCKHOLDERS’ EQUITY    Deposits:    Demand non-interest bearing $3,769,543  $4,095,874 Savings and interest bearing transaction  9,954,723   9,074,296 Time  17,318,806   14,234,973 Total deposits  31,043,072   27,405,143 Other borrowings  420,813   805,318 Subordinated notes  348,575   347,761 Subordinated debentures  113,652   121,652 Reserve for losses on unfunded loan commitments  153,813   161,834 Accrued interest payable and other liabilities  472,733   255,773 Total liabilities  32,552,658   29,097,481      Commitments and contingencies         Stockholders’ equity:    Preferred Stock: $0.01 par value; 100,000,000 shares authorized;   14,000,000 issued and outstanding at December 31, 2024 and December 31, 2023  338,980   338,980 Common Stock: $0.01 par value; 300,000,000 shares authorized;     113,457,726 and 113,148,672 shares issued and outstanding at     December 31, 2024 and December 31, 2023, respectively  1,135   1,131 Additional paid-in capital  1,625,506   1,612,446 Retained earnings  3,816,138   3,283,818 Accumulated other comprehensive loss  (76,136)  (97,374)Total stockholders’ equity before noncontrolling interest  5,705,623   5,139,001 Noncontrolling interest  571   975 Total stockholders’ equity  5,706,194   5,139,976 Total liabilities and stockholders’ equity $38,258,852  $34,237,457   Bank OZKConsolidated Statements of IncomeUnaudited   Three Months Ended December 31, Year Ended December 31,   2024   2023   2024   2023   (Dollars in thousands, except per share amounts)Interest income:        Loans $615,384  $563,256  $2,458,551  $1,991,546 Investment securities:        Taxable  8,736   9,667   34,736   39,429 Tax-exempt  12,192   10,670   46,067   38,957 Deposits with banks  26,324   21,901   110,223   58,241 Total interest income  662,636   605,494   2,649,577   2,128,173          Interest expense:        Deposits  273,119   218,474   1,084,855   627,050 Other borrowings  5,153   11,329   10,819   41,669 Subordinated notes  2,631   2,631   10,439   10,439 Subordinated debentures  2,335   2,512   9,740   9,530 Total interest expense  283,238   234,946   1,115,853   688,688          Net interest income  379,398   370,548   1,533,724   1,439,485 Provision for credit losses  37,174   43,832   175,552   165,470 Net interest income after provision for credit losses  342,224   326,716   1,358,172   1,274,015          Non-interest income:        Deposit-related fees:        NSF fees  —   1,129   —   4,228 Overdraft fees  3,488   3,571   13,842   13,831 All other service charges  7,537   7,333   29,495   27,995 Loan-related fees  8,786   6,755   28,144   18,920 BOLI income:        Increase in cash surrender value  5,807   5,401   22,677   20,696 Death benefits  —   2,966   1,344   2,966 Trust income  2,632   2,165   9,567   8,524 Gains on sales of other assets  582   3,288   3,417   9,029 Net gains on investment securities  —   1,177   560   3,243 Other  4,110   3,242   15,367   13,117 Total non-interest income  32,942   37,027   124,413   122,549          Non-interest expense:        Salaries and employee benefits  77,719   66,270   296,016   258,846 Net occupancy and equipment  17,901   17,234   71,676   72,591 Other operating expenses  44,507   61,507   183,601   198,124 Total non-interest expense  140,127   145,011   551,293   529,561          Income before taxes  235,039   218,732   931,292   867,003 Provision for income taxes  52,831   43,600   214,789   176,164 Net income  182,208   175,132   716,503   690,839 Earnings attributable to noncontrolling interest  (26)  (6)  (47)  (56)Preferred stock dividends  4,047   4,047   16,187   16,187 Net income available to common stockholders $178,135  $171,079  $700,269  $674,596          Basic earnings per common share $1.57  $1.51  $6.16  $5.89          Diluted earnings per common share $1.56  $1.50  $6.14  $5.87   Bank OZKConsolidated Statements of Stockholders’ EquityUnaudited   Preferred Stock Common Stock AdditionalPaid-inCapital Retained Earnings Accumulated Other Comprehensive (Loss) Income Non-Controlling Interest Total  (Dollars in thousands, except per share amounts)Three months ended December 31, 2024:              Balances – September 30, 2024 $338,980 $1,135  $1,619,832  $3,684,869  $(51,957) $696  $5,593,555 Net income  —  —   —   182,208   —   —   182,208 Earnings attributable to noncontrolling interest  —  —   —   (26)  —   26   — Total other comprehensive income  —  —   —   —   (24,179)  —   (24,179)Preferred stock dividends, $0.28906 per share  —  —   —   (4,047)  —   —   (4,047)Common stock dividends, $0.41 per share  —  —   —   (46,866)  —   —   (46,866)Return of capital paid to non-controlling interest  —  —   —   —   —   (151)  (151)Issuance of 11,290 shares of common stock pursuant to stock-based compensation plans  —  —   417   —   —   —   417 Stock-based compensation expense  —  —   5,257   —   —   —   5,257 Forfeitures of 3,450 shares of unvested restricted common stock  —  —   —   —   —   —   — Balances – December 31, 2024 $338,980 $1,135  $1,625,506  $3,816,138  $(76,136) $571  $5,706,194                Year ended December 31, 2024:              Balances – December 31, 2023 $338,980 $1,131  $1,612,446  $3,283,818  $(97,374) $975  $5,139,976 Cumulative effect of change in accounting principle  —  —   —   12,690   —   —   12,690 Balances – January 1, 2024 $338,980 $1,131  $1,612,446  $3,296,508  $(97,374) $975  $5,152,666 Net income  —  —   —   716,503   —   —   716,503 Earnings attributable to noncontrolling interest  —  —   —   (47)  —   47   — Total other comprehensive income  —  —   —   —   21,238   —   21,238 Preferred stock dividends, $1.15624 per share  —  —   —   (16,187)  —   —   (16,187)Common stock dividends, $1.58 per share  —  —   —   (180,639)  —   —   (180,639)Return of capital to non-controlling interest  —  —   —   —   —   (451)  (451)Issuance of 532,941 shares of common stock pursuant to stock-based compensation plans  —  6   856   —   —   —   862 Repurchase and cancellation of 11,903 shares of common stock under share repurchase program, including excise taxes  —  —   (462)  —   —   —   (462)Repurchase and cancellation of 184,415 shares of common stock withheld for tax pursuant to stock-based compensation plans  —  (2)  (8,008)  —   —   —   (8,010)Stock-based compensation expense  —  —   20,674   —   —   —   20,674 Forfeitures of 27,569 shares of unvested restricted common stock  —  —   —   —   —   —   — Balances – December 31, 2024 $338,980 $1,135  $1,625,506  $3,816,138  $(76,136) $571  $5,706,194   Bank OZKConsolidated Statements of Stockholders’ EquityUnaudited   Preferred Stock Common Stock AdditionalPaid-inCapital Retained Earnings Accumulated Other Comprehensive (Loss) Income Non-Controlling Interest Total  (Dollars in thousands, except per share amounts)Three months ended December 31, 2023:              Balances – September 30, 2023 $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, $0.28906 per share  —  —   —   (4,047)  —   —   (4,047)Common stock dividends, $0.37 per share  —  —   —   (42,130)  —   —   (42,130)Return of capital 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 – December 31, 2023 $338,980 $1,131  $1,612,446  $3,283,818  $(97,374) $975  $5,139,976                Year ended December 31, 2023:              Balances – December 31, 2022 $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, $1.15624 per share  —  —   —   (16,187)  —   —   (16,187)Common stock dividends, $1.42 per share  —  —   —   (163,913)  —   —   (163,913)Return of capital 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 – December 31, 2023 $338,980 $1,131  $1,612,446  $3,283,818  $(97,374) $975  $5,139,976   Bank OZKSummary of Non-Interest ExpenseUnaudited  Three Months Ended December 31, Year Ended December 31,  2024  2023  2024  2023 (Dollars in thousands)Salaries and employee benefits$77,719 $66,270 $296,016 $258,846Net occupancy and equipment 17,901  17,234  71,676  72,591Other operating expenses:       Software and data processing 10,964  10,577  46,980  39,212Professional and outside services 6,600  6,233  24,872  21,423Deposit insurance and assessments 5,975  15,803  25,584  30,351Advertising and public relations 3,702  5,153  20,576  16,150Amortization of CRA and tax credit investments(1) —  7,618  —  27,768Other 17,266  16,123  65,589  63,220Total non-interest expense$140,127 $145,011 $551,293 $529,561 (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.  Bank OZKSummary of Total Loans OutstandingUnaudited  December 31,  2024   2023  (Dollars in thousands)Real estate:       Residential 1-4 family$1,323,435  4.4% $961,338  3.6%Non-farm/non-residential 7,842,692  26.2   5,309,239  20.1 Construction/land development 9,522,676  31.8   11,653,487  44.0 Agricultural 296,898  1.0   256,423  1.0 Multifamily residential 3,272,635  10.9   2,064,106  7.8 Total real estate 22,258,336  74.3   20,244,593  76.5 Commercial and industrial 1,728,801  5.8   1,269,610  4.8 Consumer 3,659,713  12.2   2,965,042  11.2 Other 2,322,017  7.7   1,979,830  7.5 Total loans 29,968,867  100.0%  26,459,075  100.0%Allowance for loan losses (465,547)    (339,394)  Net loans$29,503,320    $26,119,681     Bank OZKAllowance for Credit LossesUnaudited  Allowance for Loan Losses Reserve for Losses on Unfunded Loan Commitments Total Allowance for Credit Losses (Dollars in thousands)Three months ended December 31, 2024:     Balances – September 30, 2024$420,058  $174,479  $594,537 Net charge-offs (12,351)  —   (12,351)Provision for credit losses 57,840   (20,666)  37,174 Balances – December 31, 2024$465,547  $153,813  $619,360       Year ended December 31, 2024:     Balances – December 31, 2023$339,394  $161,834  $501,228 Net charge-offs (57,420)  —   (57,420)Provision for credit losses 183,573   (8,021)  175,552 Balances – December 31, 2024$465,547  $153,813  $619,360       Three months ended December 31, 2023:     Balances – September 30, 2023$303,358  $158,128  $461,486 Net charge-offs (4,090)  —   (4,090)Provision for credit losses 40,126   3,706   43,832 Balances – December 31, 2023$339,394  $161,834  $501,228       Year ended December 31, 2023:     Balances – December 31, 2022$208,858  $156,419  $365,277 Net charge-offs (29,519)  —   (29,519)Provision for credit losses 160,055   5,415   165,470 Balances – December 31, 2023$339,394  $161,834  $501,228   Bank OZKSummary of Deposits – By Customer TypeUnaudited  December 31,   2024    2023  (Dollars in thousands)Non-interest bearing$3,769,543 12.1% $4,095,874 14.9%Interest bearing:       Consumer and commercial:       Consumer – Non-Time 2,983,401 9.6   2,792,199 10.2 Consumer – Time 13,446,545 43.3   10,216,217 37.3 Commercial – Non-Time 2,728,307 8.8   2,439,175 8.9 Commercial – Time 970,320 3.1   767,566 2.8 Public funds 3,964,350 12.8   3,725,766 13.6 Brokered 2,611,464 8.4   2,655,317 9.7 Reciprocal 569,142 1.9   713,029 2.6 Total deposits$31,043,072 100.0% $27,405,143 100.0%  Bank OZKSelected Consolidated Financial DataUnaudited  Three Months Ended December 31, Year Ended December 31,  2024   2023  % Change  2024   2023  %Change (Dollars in thousands, except per share amounts)Income statement data:           Net interest income$379,398  $370,548  2.4% $1,533,724  $1,439,485  6.5%Provision for credit losses 37,174   43,832  (15.2)  175,552   165,470  6.1 Non-interest income 32,942   37,027  (11.0)  124,413   122,549  1.5 Non-interest expense 140,127   145,011  (3.4)  551,293   529,561  4.1 Net income 182,208   175,132  4.0   716,503   690,839  3.7 Preferred stock dividends 4,047   4,047  —   16,187   16,187  — Net income available to common stockholders 178,135   171,079  4.1   700,269   674,596  3.8 Pre-tax pre-provision net revenue (1) 272,213   262,564  3.7   1,106,844   1,032,473  7.2 Common share and per common share data:           Diluted earnings per common share$1.56  $1.50  4.0% $6.14  $5.87  4.6%Basic earnings per common share 1.57   1.51  4.0   6.16   5.89  4.6 Common stock dividends per share 0.41   0.37  10.8   1.58   1.42  11.3 Book value per common share 47.30   42.42  11.5   47.30   42.42  11.5 Tangible book value per common share (1) 41.48   36.58  13.4   41.48   36.58  13.4 Weighted-average diluted shares outstanding (thousands) 114,101   113,756  0.3   114,015   114,833  (0.7)End of period shares outstanding (thousands) 113,458   113,149  0.3   113,458   113,149  0.3 Balance sheet data at period end:           Total assets$38,258,852  $34,237,457  11.7% $38,258,852  $34,237,457  11.7%Loans 29,968,867   26,459,075  13.3   29,968,867   26,459,075  13.3 Allowance for loan losses 465,547   339,394  37.2   465,547   339,394  37.2 Foreclosed assets 69,381   61,720  12.4   69,381   61,720  12.4 Investment securities – AFS 2,836,150   3,244,371  (12.6)  2,836,150   3,244,371  (12.6)Deposits 31,043,072   27,405,143  13.3   31,043,072   27,405,143  13.3 Other borrowings 420,813   805,318  (47.7)  420,813   805,318  (47.7)Unfunded loan commitments 19,078,633   20,561,029  (7.2)  19,078,633   20,561,029  (7.2)Reserve for losses on unfunded loan commitments 153,813   161,834  (5.0)  153,813   161,834  (5.0)Total common stockholders’ equity (1) 5,366,643   4,800,021  11.8   5,366,643   4,800,021  11.8 Total tangible common stockholders’ equity (1) 4,705,854   4,139,232  13.7   4,705,854   4,139,232  13.7 Accumulated other comprehensive loss (76,136)  (97,374)    (76,136)  (97,374)  Loan to deposit ratio 96.54%  96.55%    96.54%  96.55%  Selected ratios:           Return on average assets (2) 1.87%  2.04%    1.91%  2.20%  Return on average common stockholders’ equity (1) (2) 13.33   14.58     13.77   14.93   Return on average tangible common stockholders’ equity (1) (2) 15.22   16.99     15.82   17.50   Total tangible common stockholders’ equity to total tangible assets (1) 12.52   12.33     12.52   12.33   Net interest margin – FTE (2) 4.33   4.82     4.56   5.16   Efficiency ratio 33.71   35.33     33.00   33.67   Net charge-offs to average loans (2) 0.16   0.06     0.20   0.13   Nonperforming loans to loans 0.44   0.25     0.44   0.25   Nonperforming assets to total assets 0.53   0.38     0.53   0.38   Allowance for loan losses to loans 1.55   1.28     1.55   1.28   Allowance for credit losses to loans and unfunded loan commitments 1.26   1.07     1.26   1.07   Other information:           Non-accrual loans$131,494  $66,677    $131,494  $66,677    (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.  Bank OZKSelected Consolidated Financial Data (continued)Unaudited  Three Months Ended December 31, 2024 September 30, 2024 % Change (Dollars in thousands, except per share amounts)Income statement data:     Net interest income$379,398  $389,398  (2.6%)Provision for credit losses 37,174   46,443  (20.0)Non-interest income 32,942   33,605  (2.0)Non-interest expense 140,127   140,401  (0.2)Net income 182,208   181,206  0.6 Preferred stock dividends 4,047   4,047  — Net income available to common stockholders 178,135   177,147  0.6 Pre-tax pre-provision net revenue (1) 272,213   282,602  (3.7)Common share and per common share data:     Diluted earnings per common share$1.56  $1.55  0.6%Basic earnings per common share 1.57   1.56  0.6 Common stock dividends per share 0.41   0.40  2.5 Book value per common share 47.30   46.31  2.1 Tangible book value per common share (1) 41.48   40.49  2.4 Weighted-average diluted shares outstanding (thousands) 114,101   114,031  0.1 End of period shares outstanding (thousands) 113,458   113,450  — Balance sheet data at period end:     Total assets$38,258,852  $37,441,804  2.2%Loans 29,968,867   29,218,144  2.6 Allowance for loan losses 465,547   420,058  10.8 Foreclosed assets 69,381   77,949  (11.0)Investment securities – AFS 2,836,150   2,952,022  (3.9)Deposits 31,043,072   30,571,613  1.5 Other borrowings 420,813   151,035  178.6 Unfunded loan commitments 19,078,633   19,307,972  (1.2)Reserve for losses on unfunded loan commitments 153,813   174,479  (11.8)Total common stockholders’ equity (1) 5,366,643   5,253,879  2.1 Total tangible common stockholders’ equity (1) 4,705,854   4,593,090  2.5 Accumulated other comprehensive loss (76,136)  (51,957)  Loan to deposit ratio 96.54%  95.57%  Selected ratios:     Return on average assets (2) 1.87%  1.90%  Return on average common stockholders’ equity (1) (2) 13.33   13.65   Return on average tangible common stockholders’ equity (1) (2) 15.22   15.65   Total tangible common stockholders’ equity to total tangible assets (1) 12.52   12.49   Net interest margin – FTE (2) 4.33   4.55   Efficiency ratio 33.71   32.95   Net charge-offs to average loans (2) 0.16   0.36   Nonperforming loans to loans 0.44   0.60   Nonperforming assets to total assets 0.53   0.68   Allowance for loan losses to loans 1.55   1.44   Allowance for credit losses to loans and unfunded loan commitments 1.26   1.23   Other information:     Non-accrual loans$131,494  $175,665    (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.  Bank OZKSupplemental Quarterly Financial DataUnaudited  12/31/24 9/30/24 6/30/24 3/31/24 12/31/23 (Dollars in thousands, except per share amounts)Earnings summary:         Net interest income$379,398  $389,398  $387,994  $376,934  $370,548 Federal tax (FTE) adjustment 3,324   3,151   3,037   3,030   2,925 Net interest income (FTE) 382,722   392,549   391,031   379,964   373,473 Provision for credit losses (37,174)  (46,443)  (49,012)  (42,923)  (43,832)Non-interest income 32,942   33,605   28,782   29,084   37,027 Non-interest expense (140,127)  (140,401)  (137,451)  (133,314)  (145,011)Pre-tax income (FTE) 238,363   239,310   233,350   232,811   221,657 FTE adjustment (3,324)  (3,151)  (3,037)  (3,030)  (2,925)Provision for income taxes (52,831)  (54,953)  (52,778)  (54,226)  (43,600)Noncontrolling interest (26)  (12)  8   (18)  (6)Preferred stock dividend (4,047)  (4,047)  (4,047)  (4,047)  (4,047)Net income available to common stockholders$178,135  $177,147  $173,496  $171,490  $171,079 Earnings per common share – diluted$1.56  $1.55  $1.52  $1.51  $1.50 Pre-tax pre-provision net revenue (1)$272,213  $282,602  $279,325  $272,704  $262,564 Selected balance sheet data at period end:         Total assets$38,258,852  $37,441,804  $36,836,173  $36,029,904  $34,237,457 Loans 29,968,867   29,218,144   28,673,685   28,031,348   26,459,075 Investment securities – AFS 2,836,150   2,952,022   2,981,929   3,072,391   3,244,371 Deposits 31,043,072   30,571,613   29,943,663   29,406,070   27,405,143 Unfunded loan commitments 19,078,633   19,307,972   19,737,557   20,458,796   20,561,029 Allowance for credit losses:         Balance at beginning of period$594,537  $574,101  $536,887  $501,228  $461,486 Net charge-offs (12,351)  (26,007)  (11,798)  (7,264)  (4,090)Provision for credit losses 37,174   46,443   49,012   42,923   43,832 Balance at end of period$619,360  $594,537  $574,101  $536,887  $501,228 Allowance for loan losses$465,547  $420,058  $407,079  $365,935  $339,394 Reserve for losses on unfunded loan commitments 153,813   174,479   167,022   170,952   161,834 Total allowance for credit losses$619,360  $594,537  $574,101  $536,887  $501,228 Selected ratios:         Net interest margin – FTE (2) 4.33%  4.55%  4.68%  4.71%  4.82%Efficiency ratio 33.71   32.95   32.74   32.59   35.33 Net charge-offs to average loans (2) 0.16   0.36   0.17   0.11   0.06 Nonperforming loans to loans 0.44   0.60   0.30   0.22   0.25 Nonperforming assets to total assets 0.53   0.68   0.42   0.34   0.38 Allowance for loan losses to loans 1.55   1.44   1.42   1.31   1.28 Allowance for credit losses to loans and unfunded loan commitments 1.26   1.23   1.19   1.11   1.07 Loans past due 30 days or more, including past due non-accrual loans, to total loans 0.17   0.14   0.17   0.18   0.21  (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.  Bank OZKAverage Consolidated Balance Sheets and Net Interest Analysis – FTEUnaudited  Three Months Ended December 31, Year Ended December 31,  2024   2023   2024   2023  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$2,263,875 $26,324 4.63% $1,637,395 $21,902 5.31% $2,138,560 $110,223 5.15% $1,164,595 $58,241 5.00%Investment securities:                       Taxable 1,679,300  8,736 2.07   2,143,606  9,667 1.79   1,846,639  34,736 1.88   2,299,254  39,429 1.71 Tax-exempt – FTE 1,262,676  15,432 4.86   1,097,750  13,506 4.88   1,195,851  58,312 4.88   1,049,642  49,313 4.70 Total loans – FTE 29,952,752  615,468 8.17   25,861,611  563,344 8.64   28,711,132  2,458,847 8.56   23,580,165  1,991,953 8.45 Total earning assets – FTE 35,158,603  665,960 7.54   30,740,362  608,419 7.85   33,892,182  2,662,118 7.85   28,093,656  2,138,936 7.61 Non-interest earning assets 2,679,566      2,538,592      2,723,606      2,550,276    Total assets$37,838,169     $33,278,954     $36,615,788     $30,643,932    LIABILITIES AND STOCKHOLDERS’ EQUITY                    Interest bearing liabilities:                       Deposits:                       Savings and interest bearing transaction$9,371,509 $64,674 2.75% $9,004,724 $64,165 2.83% $9,247,175 $269,072 2.91% $9,152,060 $211,498 2.31%Time deposits 17,326,058  208,445 4.79   13,280,889  154,309 4.61   16,622,440  815,783 4.91   10,543,800  415,552 3.94 Total interest bearing deposits 26,697,567  273,119 4.07   22,285,613  218,474 3.89   25,869,615  1,084,855 4.19   19,695,860  627,050 3.18 Other borrowings (1) 500,286  5,153 4.10   863,828  11,329 5.20   257,055  10,819 4.21   803,797  41,669 5.18 Subordinated notes 348,475  2,631 3.00   347,661  2,631 3.00   348,170  10,439 3.00   347,356  10,439 3.01 Subordinated debentures 121,565  2,335 7.64   121,652  2,512 8.19   121,630  9,740 8.01   121,648  9,530 7.83 Total interest bearing liabilities 27,667,893  283,238 4.07   23,618,754  234,946 3.95   26,596,470  1,115,853 4.20   20,968,661  688,688 3.28 Non-interest bearing liabilities:                       Non-interest bearing deposits 3,812,596      4,150,323      3,917,887      4,315,200    Other non-interest bearing liabilities 701,650      513,326      674,873      502,732    Total liabilities 32,182,139      28,282,403      31,189,230      25,786,593    Total stockholders’ equity before noncontrolling interest 5,655,337      4,995,217      5,425,658      4,855,976    Noncontrolling interest 693      1,334      900      1,363    Total liabilities and stockholders’ equity$37,838,169     $33,278,954     $36,615,788     $30,643,932    Net interest income – FTE  $382,722     $373,473     $1,546,265     $1,450,248  Net interest margin – FTE    4.33%     4.82%     4.56%     5.16%Core spread (2)    4.10%     4.75%     4.37%     5.27% (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.  Bank OZKReconciliation of Non-GAAP Financial MeasuresCalculation of Average Common Stockholders’ Equity,Average Tangible Common Stockholders’ Equityand the Annualized Returns on Average Common Stockholders’ Equity andAverage Tangible Common Stockholders’ EquityUnaudited  Three Months Ended     December 31, September 30, Year Ended December 31,  2024   2023   2024   2024   2023  (Dollars in thousands)Net income available to common stockholders$178,135  $171,079  $177,147  $700,269  $674,596 Average stockholders’ equity before noncontrolling interest$5,655,337  $4,995,217  $5,502,526  $5,425,658  $4,855,976 Less average preferred stock (338,980)  (338,980)  (338,980)  (338,980)  (338,980)Total average common stockholders’ equity 5,316,357   4,656,237   5,163,546   5,086,678   4,516,996 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 —   —   —   —   (821)Total average intangibles (660,789)  (660,789)  (660,789)  (660,789)  (661,610)Average tangible common stockholders’ equity$4,655,568  $3,995,448  $4,502,757  $4,425,889  $3,855,386 Return on average common stockholders’ equity(1) 13.33%  14.58%  13.65%  13.77%  14.93%Return on average tangible common stockholders’ equity(1) 15.22%  16.99%  15.65%  15.82%  17.50% (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 ShareUnaudited  December 31, September 30,  2024   2023   2024  (In thousands, except per share amounts)Total stockholders’ equity before noncontrolling interest$5,705,623  $5,139,001  $5,592,859 Less preferred stock (338,980)  (338,980)  (338,980)Total common stockholders’ equity$5,366,643  $4,800,021  $5,253,879 Less goodwill (660,789)  (660,789)  (660,789)Total tangible common stockholders’ equity$4,705,854  $4,139,232  $4,593,090 Shares of common stock outstanding 113,458   113,149   113,450 Book value per common share$47.30  $42.42  $46.31 Tangible book value per common share$41.48  $36.58  $40.49   Calculation of Total Common Stockholders’ Equity,Total Tangible Common Stockholders’ Equityand the Ratio of Total Tangible Common Stockholders’ Equity to Total Tangible AssetsUnaudited  December 31, September 30,  2024   2023   2024  (Dollars in thousands)Total stockholders’ equity before noncontrolling interest$5,705,623  $5,139,001  $5,592,859 Less preferred stock (338,980)  (338,980)  (338,980)Total common stockholders’ equity$5,366,643  $4,800,021  $5,253,879 Less goodwill (660,789)  (660,789)  (660,789)Total tangible common stockholders’ equity 4,705,854   4,139,232   4,593,090 Total assets$38,258,852  $34,237,457  $37,441,804 Less goodwill$(660,789) $(660,789) $(660,789)Total tangible assets$37,598,063  $33,576,668  $36,781,015 Ratio of total common stockholders’ equity to total assets 14.03%  14.02%  14.03%Ratio of total tangible common stockholders’ equity to total tangible assets 12.52%  12.33%  12.49%  Calculation of Pre-Tax Pre-Provision Net RevenueUnaudited  Three Months Ended Year Ended Dec 31, Sept 30, June 30, March 31, Dec 31, December 31,  2024  2024  2024   2024  2023  2024  2023 (Dollars in thousands)    Net income available to common stockholders$178,135 $177,147 $173,496  $171,490 $171,079 $700,269 $674,596Preferred stock dividends 4,047  4,047  4,047   4,047  4,047  16,187  16,187Earnings attributable to noncontrolling interest 26  12  (8)  18  6  47  56Provision for income taxes 52,831  54,953  52,778   54,226  43,600  214,789  176,164Provision for credit losses 37,174  46,443  49,012   42,923  43,832  175,552  165,470Pre-tax pre-provision net revenue$272,213 $282,602 $279,325  $272,704 $262,564 $1,106,844 $1,032,473    Investor Contact: Jay Staley (501) 906-7842Media Contact: Michelle Rossow (501) 906-3922

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