LITTLE ROCK, Ark., July 20, 2023 (GLOBE NEWSWIRE) -- Bank OZK (the “Bank”) ( OZK) today announced that net income available to common stockholders for the second quarter of 2023 was a record $167.9 million, a 26.9% increase from $132.4 million for the second quarter of 2022. Diluted earnings per common share for the second quarter of 2023 were a record $1.47, a 33.6% increase from $1.10 for the second quarter of 2022.
For the six months ended June 30, 2023, net income available to common stockholders was $333.8 million, a 28.2% increase from $260.4 million for the first six months of 2022. Diluted earnings per common share for the first six months of 2023 were $2.88, a 35.8% increase from $2.12 for the first six months of 2022.
Pre-tax pre-provision net revenue (“PPNR”) was $259.5 million for the second quarter of 2023, a 41.9% increase from $182.8 million for the second quarter of 2022. For the first six months of 2023, PPNR was $505.9 million, a 42.1% increase from $355.9 million for the first six months of 2022. 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 $41.8 million for the second quarter and $77.6 million for the first six months of 2023 compared to $7.0 million for the second quarter of 2022 and $11.2 million for the first six months of 2022. The Bank’s total allowance for credit losses (“ACL”) was $426.8 million at June 30, 2023 compared to $299.9 million at June 30, 2022.
The Bank’s annualized returns on average assets, average common stockholders’ equity and average tangible common stockholders’ equity for the second quarter of 2023 were 2.27%, 15.14% and 17.78%, respectively, compared to 2.02%, 12.40% and 14.69%, respectively, for the second quarter of 2022. The Bank’s annualized returns on average assets, average common stockholders’ equity and average tangible common stockholders’ equity for the first six months of 2023 were 2.34%, 15.19% and 17.86%, respectively, compared to 2.00%, 12.03% and 14.20%, respectively, for the first six months of 2022. 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 pleased to report our record results for the quarter just ended, which continued our long tradition of industry-leading performance. Our strong earnings and capital have us well-positioned to grow and capitalize on opportunities resulting from the current macroeconomic and industry environment.”
KEY BALANCE SHEET METRICS
Total loans were $23.61 billion at June 30, 2023, a 26.0% increase from $18.74 billion at June 30, 2022. Deposits were $23.98 billion at June 30, 2023, a 20.0% increase from $19.98 billion at June 30, 2022. Total assets were $30.76 billion at June 30, 2023, an 18.7% increase from $25.92 billion at June 30, 2022.
Common stockholders’ equity was $4.47 billion at June 30, 2023, a 4.8% increase from $4.27 billion at June 30, 2022. Tangible common stockholders’ equity was $3.81 billion at June 30, 2023, a 5.8% increase from $3.60 billion at June 30, 2022. During the quarter just ended, the Bank repurchased approximately 1.96 million shares for $66.1 million, which equates to a weighted average cost of approximately $33.80 per share. During the first six months of 2023, the Bank repurchased 4.3 million shares for $151.5 million, which equates to a weighted average cost of approximately $35.19 per share.
Book value per common share was $39.51 at June 30, 2023, a 10.1% increase from $35.87 at June 30, 2022. Tangible book value per common share was $33.67 at June 30, 2023, an 11.2% increase from $30.27 at June 30, 2022.
The Bank’s ratio of total common stockholders’ equity to total assets was 14.53% at June 30, 2023, compared to 16.47% at June 30, 2022. Its ratio of total tangible common stockholders’ equity to total tangible assets was 12.66% at June 30, 2023, compared to 14.26% at June 30, 2022. 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 non-purchased loans to total loans (excluding purchased loans) was 0.15% at June 30, 2023, compared to 0.16% as of June 30, 2022. The Bank’s ratio of nonperforming assets to total assets (excluding purchased loans, except for their inclusion in total assets) was 0.32% at June 30, 2023, compared to 0.12% as of June 30, 2022. The Bank’s annualized ratio of net charge-offs of total loans to average total loans was 0.15% for the second quarter and six months ended June 30, 2023 compared to 0.01% for the second quarter and 0.00% for the six months ended June 30, 2022.
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 at 10:00 a.m. CT (11:00 a.m. ET) on Friday, July 21, 2023. 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 typically adjust GAAP financial measures to exclude intangible assets or 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, 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 and expansion strategies, including hiring or retaining qualified personnel, obtaining regulatory or other approvals, delays in identifying satisfactory sites, obtaining permits and designing, constructing and opening new offices or relocating, selling or closing existing offices; 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, including the effects of recent failures of other financial institutions; recently enacted and potential 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, and 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; 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 failure in, or breach of, our operational or security systems or infrastructure, or those of third parties with whom we do business, 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 or its customers; 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 ongoing war in Ukraine; the competition and costs of recruiting and retaining human talent; 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, 2022 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 ( 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 with over 240 offices in eight states including Arkansas, Georgia, Florida, North Carolina, Texas, New York, California and Mississippi and had $30.76 billion in total assets as of June 30, 2023. 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.
14,000,000 issued and outstanding at June 30, 2023 and
December 31, 2022 338,980 338,980 Common Stock: $0.01 par value; 300,000,000 shares authorized;
113,145,449 and 117,176,928 shares issued and outstanding at June 30, 2023
and December 31, 2022, respectively 1,131 1,172 Additional paid-in capital 1,602,964 1,753,941 Retained earnings 3,026,247 2,773,135 Accumulated other comprehensive (loss) income (159,431) (177,649)Total stockholders’ equity before noncontrolling interest 4,809,891 4,689,579 Noncontrolling interest 1,372 1,359 Total stockholders’ equity 4,811,263 4,690,938 Total liabilities and stockholders’ equity $30,761,870 $27,656,568
June 30, Six Months Ended
June 30, 2023 2022 2023 2022 (Dollars in thousands, except per share amounts)Interest income: Non-purchased loans $472,524 $256,264 $887,420 $496,259 Purchased loans 5,322 8,982 11,840 17,152 Investment securities: Taxable 9,704 10,367 19,875 20,978 Tax-exempt 9,489 4,020 18,753 7,006 Deposits with banks and federal funds sold 11,407 1,855 19,277 2,464 Total interest income 508,446 281,488 957,165 543,859 Interest expense: Deposits 136,122 10,855 229,754 19,347 Other borrowings 10,591 1,042 16,013 2,039 Subordinated notes 2,603 2,603 5,177 5,177 Subordinated debentures 2,306 1,195 4,545 2,159 Total interest expense 151,622 15,695 255,489 28,722 Net interest income 356,824 265,793 701,676 515,137 Provision for credit losses 41,774 7,025 77,602 11,215 Net interest income after provision for credit losses 315,050 258,768 624,074 503,922 Non-interest income: Service charges on deposit accounts: NSF and overdraft fees 4,373 4,247 8,651 8,449 All other service charges 7,187 7,184 13,688 13,874 Trust income 2,113 1,911 4,146 4,005 BOLI income: Increase in cash surrender value 5,069 4,846 10,043 9,639 Death benefits — — — 297 Loan service, maintenance and other fees 4,095 3,603 8,170 6,621 Gains on sales of other assets 5,033 784 5,377 7,776 Net gains on investment securities 620 531 2,336 441 Other 3,497 3,214 7,384 6,694 Total non-interest income 31,987 26,320 59,795 57,796 Non-interest expense: Salaries and employee benefits 65,219 54,412 128,468 109,060 Net occupancy and equipment 19,476 17,060 37,560 34,309 Other operating expenses 44,660 37,828 89,543 73,647 Total non-interest expense 129,355 109,300 255,571 217,016 Income before taxes 217,682 175,788 428,298 344,702 Provision for income taxes 45,717 39,375 86,420 75,786 Net income 171,965 136,413 341,878 268,916 Earnings attributable to noncontrolling interest (1) (8) (13) (3)Preferred stock dividends 4,047 4,047 8,094 8,527 Net income available to common stockholders $167,917 $132,358 $333,771 $260,386 Basic earnings per common share $1.47 $1.10 $2.89 $2.13 Diluted earnings per common share $1.47 $1.10 $2.88 $2.12
Paid-in
Capital Retained Earnings Accumulated Other Comprehensive (Loss) Income Non-Controlling Interest Total (Dollars in thousands, except per share amounts)Three months ended June 30, 2023: Balances – March 31, 2023 $338,980 $1,151 $1,664,569 $2,898,904 $(141,677) $1,371 $4,763,298 Net income — — — 171,965 — — 171,965 Earnings attributable to noncontrolling interest — — — (1) — 1 — Total other comprehensive income (loss) — — — — (17,754) — (17,754)Preferred stock dividends, $0.28906 per share — — — (4,047) — — (4,047)Common stock dividends, $0.35 per share — — — (40,574) — — (40,574)Issuance of 30,148 shares of common stock pursuant to stock-based compensation plans — — 23 — — — 23 Repurchase and cancellation of 1,956,101 shares of common stock under share repurchase program, including excise taxes — (20) (66,106) — (66,126)Stock-based compensation expense — — 4,478 — — — 4,478 Forfeitures of 8,706 shares of unvested restricted common stock — — — — — — — Balances – June 30, 2023 $338,980 $1,131 $1,602,964 $3,026,247 $(159,431) $1,372 $4,811,263 Six months ended June 30, 2023: Balances – December 31, 2022 $338,980 $1,172 $1,753,941 $2,773,135 $(177,649) $1,359 $4,690,938 Net income — — — 341,878 — — 341,878 Earnings attributable to noncontrolling interest — — — (13) — 13 — Total other comprehensive income — — — — 18,218 — 18,218 Preferred stock dividends, $0.57812 per share — — — (8,094) — — (8,094)Common stock dividends, $0.69 per share — — — (80,659) — — (80,659)Issuance of 503,187 shares of common stock pursuant to stock-based compensation plans — 5 541 — — — 546 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 — — 8,575 — — — 8,575 Forfeitures of 15,065 shares of unvested restricted common stock — — — — — — — Balances – June 30, 2023 $338,980 $1,131 $1,602,964 $3,026,247 $(159,431) $1,372 $4,811,263
Paid-in
Capital Retained Earnings Accumulated Other Comprehensive (Loss) Income Non-Controlling Interest Total (Dollars in thousands, except per share amounts)Three months ended June 30, 2022: Balances – March 31, 2022 $338,980 $1,227 $1,962,126 $2,468,652 $(80,928) $3,112 $4,693,169 Net income — — — 136,413 — — 136,413 Earnings attributable to noncontrolling interest — — — (8) — 8 — Total other comprehensive loss — — — — (33,240) — (33,240)Preferred stock dividends, $0.28906 per share — — — (4,047) — (4,047)Common stock dividends, $0.31 per share — — — (37,880) — — (37,880)Issuance of 41,503 shares of common stock pursuant to stock-based compensation plans — — 594 — — — 594 Repurchase and cancellation of 3,689,819 shares of common stock under share repurchase program — (37) (147,396) — — — (147,433)Stock-based compensation expense — — 2,326 — — — 2,326 Forfeitures of 32,858 shares of unvested restricted common stock — — — — — — — Balances – June 30, 2022 $338,980 $1,190 $1,817,650 $2,563,130 $(114,168) $3,120 $4,609,902 Six months ended June 30, 2022: Balances – December 31, 2021 $338,980 $1,254 $2,093,702 $2,378,466 $23,841 $3,117 $4,839,360 Net income — — — 268,916 — — 268,916 Earnings attributable to noncontrolling interest — — — (3) — 3 — Total other comprehensive loss — — — — (138,009) — (138,009)Preferred stock dividends, $0.60906 per share — — — (8,527) — (8,527)Common stock dividends, $0.61 per share — — — (75,722) — — (75,722)Issuance of 289,929 shares of common stock pursuant to stock-based compensation plans — 3 2,077 — — — 2,080 Repurchase and cancellation of 6,572,832 shares of common stock under share repurchase program — (65) (278,932) — — — (278,997)Repurchase and cancellation of 112,974 shares of common stock withheld for tax pursuant to stock-based compensation plans. — (1) (5,398) — — — (5,399)Stock-based compensation expense — — 6,200 — — — 6,200 Forfeitures of 51,850 shares of unvested restricted common stock — (1) 1 — — — — Balances – June 30, 2022 $338,980 $1,190 $1,817,650 $2,563,130 $(114,168) $3,120 $4,609,902
June 30, Six Months Ended
June 30, 2023 2022 2023 2022 (Dollars in thousands)Salaries and employee benefits$65,219 $54,412 $128,468 $109,060Net occupancy and equipment 19,476 17,060 37,560 34,309Other operating expenses: Software and data processing 9,768 8,976 19,051 17,162Professional and outside services 5,445 5,708 10,550 10,525Deposit insurance and assessments 4,900 2,100 9,048 4,250Advertising and public relations 3,184 1,103 7,219 2,362Postage and supplies 2,431 1,461 4,144 3,126Telecommunication services 2,398 1,921 4,671 3,931Travel and meals 1,903 2,186 3,718 3,944ATM expense 1,659 1,488 3,798 2,997Amortization of intangibles 1,189 1,516 2,377 3,033Loan collection and repossession expense 517 353 904 678Writedowns of foreclosed and other assets 24 — 965 258Amortization of CRA and tax credit investments 5,566 4,628 11,980 9,730Other 5,676 6,388 11,118 11,651Total non-interest expense$129,355 $109,300 $255,571 $217,016
June 30, Six Months Ended
June 30, 2023 2022 %
Change 2023 2022 %
Change (Dollars in thousands, except per share amounts)Income statement data: Net interest income$356,824 $265,793 34.2% $701,676 $515,137 36.2%Provision for credit losses 41,774 7,025 494.6 77,602 11,215 591.9 Non-interest income 31,987 26,320 21.5 59,795 57,796 3.5 Non-interest expense 129,355 109,300 18.3 255,571 217,016 17.8 Net income 171,965 136,413 26.1 341,878 268,916 27.1 Preferred stock dividends 4,047 4,047 — 8,094 8,527 (5.1)Net income available to common stockholders 167,917 132,358 26.9 333,771 260,386 28.2 Pre-tax pre-provision net revenue (1) 259,456 182,813 41.9 505,900 355,917 42.1 Common share and per common share data: Diluted earnings per common share$1.47 $1.10 33.6% $2.88 $2.12 35.8%Basic earnings per common share 1.47 1.10 33.6 2.89 2.13 35.7 Common stock dividends per share 0.35 0.31 12.9 0.69 0.61 13.1 Book value per share 39.51 35.87 10.1 39.51 35.87 10.1 Tangible book value per common share (1) 33.67 30.27 11.2 33.67 30.27 11.2 Weighted-average diluted shares outstanding (thousands) 114,284 120,827 (5.4) 115,871 122,905 (5.7)End of period shares outstanding (thousands) 113,145 118,996 (4.9) 113,145 118,996 (4.9)Balance sheet data at period end: Total assets$30,761,870 $25,919,965 18.7% $30,761,870 $25,919,965 18.7%Total loans 23,607,446 18,742,718 26.0 23,607,446 18,742,718 26.0 Non-purchased loans 23,291,785 18,297,638 27.3 23,291,785 18,297,638 27.3 Purchased loans 315,661 445,080 (29.1) 315,661 445,080 (29.1)Allowance for loan losses 263,188 190,795 37.9 263,188 190,795 37.9 Foreclosed assets 62,048 2,593 2292.9 62,048 2,593 2292.9 Investment securities – AFS 3,262,366 3,705,807 (12.0) 3,262,366 3,705,807 (12.0)Goodwill and other intangible assets, net 661,166 666,029 (0.7) 661,166 666,029 (0.7)Deposits 23,983,397 19,984,187 20.0 23,983,397 19,984,187 20.0 Other borrowings 1,104,478 505,221 118.6 1,104,478 505,221 118.6 Subordinated notes 347,350 346,536 0.2 347,350 346,536 0.2 Subordinated debentures 121,652 121,310 0.3 121,652 121,310 0.3 Unfunded balance of closed loans 21,119,761 17,369,767 21.6 21,119,761 17,369,767 21.6 Reserve for losses on unfunded loan commitments 163,632 109,143 49.9 163,632 109,143 49.9 Preferred stock 338,980 338,980 — 338,980 338,980 — Total common stockholders’ equity 4,470,911 4,267,802 4.8 4,470,911 4,267,802 4.8 Net unrealized losses on investment securities AFS included in stockholders’ equity (159,431) (114,168) (159,431) (114,168) Loan (including purchased loans) to deposit ratio 98.43% 93.79% 98.43% 93.79% Selected ratios: Return on average assets (2) 2.27% 2.02% 2.34% 2.00% Return on average common stockholders’ equity (1) (2) 15.14 12.40 15.19 12.03 Return on average tangible common stockholders’ equity (1) (2) 17.78 14.69 17.86 14.20 Average common equity to total average assets 15.00 16.32 15.38 16.60 Net interest margin – FTE (2) 5.32 4.52 5.43 4.38 Efficiency ratio 33.05 37.25 33.33 37.73 Net charge-offs to average non-purchased loans (2) (3) 0.03 0.03 0.09 0.05 Net charge-offs to average total loans (2) 0.15 0.01 0.15 0.00 Nonperforming loans to total loans (4) 0.15 0.16 0.15 0.16 Nonperforming assets to total assets (4) 0.32 0.12 0.32 0.12 Allowance for loan losses to total loans (5) 1.11 1.02 1.11 1.02 Allowance for credit losses to total loans and unfunded loan commitments 0.95 0.83 0.95 0.83 Other information: Non-accrual loans (4)$35,320 $28,171 $35,320 $28,171 Accruing loans - 90 days past due (4) — — — —
(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 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.
Change (Dollars in thousands, except per share amounts)Income statement data: Net interest income$356,824 $344,852 3.5%Provision for credit losses 41,774 35,829 16.6 Non-interest income 31,987 27,809 15.0 Non-interest expense 129,355 126,217 2.5 Net income 171,965 169,912 1.2 Preferred stock dividends 4,047 4,047 — Net income available to common stockholders 167,917 165,853 1.2 Pre-tax pre-provision net revenue (1) 259,456 246,444 5.3 Common share and per common share data: Diluted earnings per common share$1.47 $1.41 4.3%Basic earnings per common share 1.47 1.42 3.5 Common stock dividends per share 0.35 0.34 2.9 Book value per share 39.51 38.43 2.8 Tangible book value per common share (1) 33.67 32.68 3.0 Weighted-average diluted shares outstanding (thousands) 114,284 117,405 (2.7)End of period shares outstanding (thousands) 113,145 115,080 (1.7)Balance sheet data at period end: Total assets$30,761,870 $28,971,170 6.2%Total loans 23,607,446 22,062,006 7.0 Non-purchased loans 23,291,785 21,700,941 7.3 Purchased loans 315,661 361,065 (12.6)Allowance for loan losses 263,188 222,025 18.5 Foreclosed assets 62,048 66,227 (6.3)Investment securities – AFS 3,262,366 3,422,031 (4.7)Goodwill and other intangible assets, net 661,166 662,354 (0.2)Deposits 23,983,397 22,282,983 7.6 Other borrowings 1,104,478 994,079 11.1 Subordinated notes 347,350 347,147 0.1 Subordinated debentures 121,652 121,652 — Unfunded balance of closed loans 21,119,761 20,965,040 0.7 Reserve for losses on unfunded loan commitments 163,632 171,742 (4.7)Preferred stock 338,980 338,980 — Total common stockholders’ equity 4,470,911 4,422,947 1.1 Net unrealized losses on investment securities AFS included in stockholders’ equity (159,431) (141,677) Loan (including purchased loans) to deposit ratio 98.43% 99.01% Selected ratios: Return on average assets (2) 2.27% 2.41% Return on average common stockholders’ equity (1) (2) 15.14 15.24 Return on average tangible common stockholders’ equity (1) (2) 17.78 17.94 Average common equity to total average assets 15.00 15.78 Net interest margin – FTE (2) 5.32 5.54 Efficiency ratio 33.05 33.63 Net charge-offs to average non-purchased loans (2) (3) 0.03 0.15 Net charge-offs to average total loans (2) 0.15 0.14 Nonperforming loans to total loans (4) 0.15 0.15 Nonperforming assets to total assets (4) 0.32 0.34 Allowance for loan losses to total loans (5) 1.11 1.01 Allowance for credit losses to total loans and unfunded loan commitments 0.95 0.92 Other information: Non-accrual loans (4)$35,320 $33,371 Accruing loans – 90 days past due (4) — —
(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 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.
(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.
(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.
Interest bearing liabilities: Deposits: Savings and interest bearing transaction$9,075,132 $48,650 2.15% $9,697,128 $5,379 0.22% $9,402,496 $91,164 1.96% $9,610,145 $8,162 0.17%Time deposits 9,650,599 87,472 3.64 5,404,880 5,476 0.41 8,612,573 138,590 3.24 5,581,955 11,185 0.40 Total interest bearing deposits 18,725,731 136,122 2.92 15,102,008 10,855 0.29 18,015,069 229,754 2.57 15,192,100 19,347 0.26 Other borrowings 828,644 10,591 5.13 670,599 1,042 0.62 648,870 16,013 4.98 713,121 2,039 0.58 Subordinated notes 347,251 2,603 3.01 346,426 2,603 3.01 347,151 5,177 3.01 346,327 5,177 3.01 Subordinated debentures 121,652 2,306 7.60 121,234 1,195 3.95 121,645 4,545 7.54 121,166 2,159 3.59 Total interest bearing liabilities 20,023,278 151,622 3.04 16,240,267 15,695 0.39 19,132,735 255,489 2.69 16,372,714 28,722 0.35 Non-interest bearing liabilities: Non-interest bearing deposits 4,348,639 4,970,380 4,409,684 4,872,646 Other non-interest bearing liabilities 502,394 392,126 501,203 340,854 Total liabilities 24,874,311 21,602,773 24,043,622 21,586,214 Total stockholders’ equity before
noncontrolling interest 4,788,584 4,619,033 4,770,135 4,703,196 Noncontrolling interest 1,371 3,118 1,367 3,116 Total liabilities and stockholders’ equity$29,664,266 $26,224,924 $28,815,124 $26,292,526 Net interest income – FTE $359,427 $267,092 $706,881 $517,454 Net interest margin – FTE 5.32% 4.52% 5.43% 4.38%Core spread (1) 5.55% 5.26% 5.71% 5.20%
(1) Core spread is the difference between the yield on the Bank’s non-purchased loans-FTE and the rate on its interest bearing deposits.
Average Tangible Common Stockholders’ Equity
and the Annualized Returns on Average Common Stockholders’ Equity and
Average Tangible Common Stockholders’ Equity Unaudited Three Months Ended Six Months Ended June 30, June 30, March 31, June 30, June 30, 2023 2022 2023 2023 2022 (Dollars in thousands)Net income available to common stockholders$167,917 $132,358 $165,853 $333,771 $260,386 Average stockholders’ equity before noncontrolling interest$4,788,584 $4,619,033 $4,751,481 $4,770,135 $4,703,196 Less average preferred stock (338,980) (338,980) (338,980) (338,980) (338,980)Total average common stockholders’ equity 4,449,604 4,280,053 4,412,501 4,431,155 4,364,216 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 (999) (6,084) (2,243) (1,618) (6,824)Total average intangibles (661,788) (666,873) (663,032) (662,407) (667,613)Average tangible common stockholders’ equity$3,787,816 $3,613,180 $3,749,469 $3,768,748 $3,696,603 Return on average common stockholders’ equity(1) 15.14% 12.40% 15.24% 15.19% 12.03%Return on average tangible common stockholders’ equity(1) 17.78% 14.69% 17.94% 17.86% 14.20%
(1) Ratios for interim periods annualized based on actual days.
Total Tangible Common Stockholders’ Equity
and Tangible Book Value per Common ShareUnaudited June 30, December 31, 2023 2022 2022 (In thousands, except per share amounts)Total stockholders’ equity before noncontrolling interest$4,809,891 $4,606,782 $4,689,579 Less preferred stock (338,980) (338,980) (338,980)Total common stockholders’ equity$4,470,911 $4,267,802 $4,350,599 Less intangible assets: Goodwill (660,789) (660,789) (660,789)Core deposit and other intangible assets, net of
accumulated amortization (377) (5,240) (2,754)Total intangibles (661,166) (666,029) (663,543)Total tangible common stockholders’ equity$3,809,745 $3,601,773 $3,687,056 Shares of common stock outstanding 113,145 118,996 117,177 Book value per common share$39.51 $35.87 $37.13 Tangible book value per common share$33.67 $30.27 $31.47
Total Tangible Common Stockholders’ Equity
and the Ratio of Total Tangible Common Stockholders’ Equity
to Total Tangible AssetsUnaudited June 30, 2023 2022 (Dollars in thousands)Total stockholders’ equity before noncontrolling interest$4,809,891 $4,606,782 Less preferred stock (338,980) (338,980)Total common stockholders’ equity$4,470,911 $4,267,802 Less intangible assets: Goodwill (660,789) (660,789)Core deposit and other intangible assets, net of accumulated amortization (377) (5,240)Total intangibles (661,166) (666,029)Total tangible common stockholders’ equity 3,809,745 3,601,773 Total assets$30,761,870 $25,919,965 Less intangible assets: Goodwill$(660,789) $(660,789)Core deposit and other intangible assets, net of accumulated amortization (377) (5,240)Total intangibles$(661,166) $(666,029)Total tangible assets$30,100,704 $25,253,936 Ratio of total common stockholders’ equity to total assets 14.53% 16.47%Ratio of total tangible common stockholders’ equity to total tangible assets 12.66% 14.26%
