BANK OZK ANNUAL REPORT 2023
Bank OZK
is a nationally recognized leader in the financial services industry, known for its focus on relationships, expertise and excellence in execution. We aspire to provide exceptional service by delivering smart solutions tailored to meet our clients' multifaceted needs.
At Bank OZK, we're reshaping skylines in some of America's largest cities, while investing in local businesses and economies around the country. With our rich history of cultivating relationships, we strive to provide excellent services and support that help our communities, large and small, to grow and thrive.
is a high-performing regional bank deep expertise in specialized lending
businesses nationwide.
Arkansas
74 Branches
California
3 LPOs
New York
1 LPO
Texas
22 Branches
Mississippi | |
1 LPO | 41 Branches |
Bank OZK operates through 228 retail branches and 12 loan production offices ("LPOs")*.
In addition to the branches and LPOs identified above, we have our corporate headquarters located in Little Rock, AR; our RESG headquarters located in Dallas, TX; and our Indirect Lending headquarters located in Alpharetta, GA (each including a branch or LPO counted above); as well as an operations campus located in Ozark, AR; our OZK Labs in St. Petersburg, FL; and a solar power plant located in Stuttgart, AR.
This report contains forward-looking statements and reflects management's current views of future economic circumstances, industry conditions, company performance and financial results. Actual future performance, outcomes and results may differ materially from those expressed in these forward-looking statements due to certain risks, uncertainties and assumptions. A description of certain factors that may affect future results can be found in this annual report under "Forward-Looking Information" and under "Part I-Item 1A. Risk Factors."
* As of December 31, 2023
A N N U A L R E P O R T 2 0 2 3 | 01 |
02
Our mission at Bank OZK is simple - to be the best banking organization for our shareholders, customers and teammates, all while positively contributing to the communities we serve.
George Gleason
Chairman and Chief Executive Officer
FELLOW SHAREHOLDERS,
Our 2023 results are truly worth celebrating!
We achieved record profitability, strong growth in both loans and deposits, strategic expansion of our team, and many other successes. Our 2,700+ talented and hard-working teammates deserve all the credit for our numerous record results and accomplishments. They have earned an enthusiastic "well done!"
The operating environment throughout 2023 was one of the most complex and challenging in my 45 years as Chairman/CEO. Rapidly increasing interest rates and other macroeconomic changes caught some in the industry unprepared. Our excellent team had us well prepared, which allowed us to post record results and capitalize on many opportunities resulting from turbulent industry conditions.
Our strong capital position and earnings, hallmarks of Bank OZK, allowed us to remain a trusted partner that our customers could count on during 2023's uncertainties. For more than 100 years, we have been a reliable source of strength and stability during economic storms, putting our strength to work to help our customers realize their financial goals.
Our mission at Bank OZK is simple - to be the best banking organization for our shareholders, customers and teammates, all while positively contributing to the communities we serve. To deliver on this mission, we embrace the OZK Way, our guiding principles for driving success across our organization. Our focus on maximizing customer experiences, embracing teamwork, honesty and integrity, doing what's right, and striving for excellence through continuous innovation and improvement has resulted in Bank OZK being recognized repeatedly by leading industry sources as one of the nation's best banks.
Our sound principles have always served us well, including in 2023, and they will continue to be our guiding standards for years to come.
I would like to extend my gratitude to our shareholders, our valued customers, and our dedicated employees for their support throughout the past year. I would also like to acknowledge the exceptional strategic leadership of our distinguished Board of Directors and their contributions to our success.
I believe that Bank OZK is well positioned for 2024 due to our proven business model, unwavering adherence to sound principles and our talented team. I remain excited about Bank OZK's future, and I firmly believe that our best years are ahead.
Thank you for reading our report and for your continued support.
Sincerely,
GEORGE GLEASON
Chairman and Chief Executive Officer
A N N U A L R E P O R T 2 0 2 3 | 03 |
04
LONG-TERM PERSPECTIVE
We remain focused on asset quality, profitability and growth. The outstanding results we achieved in 2023 reflect our continued commitment to excellence and our focus on long-term performance. Our constant pursuit of building relationships, improving performance and enhancing efficiency has consistently produced superior results.
Net Income | Earnings | |||||||||||||||||||||
Available To Common | Per Common | |||||||||||||||||||||
Stockholders | Share | |||||||||||||||||||||
($ Millions) | (Diluted) | |||||||||||||||||||||
$ 9 1 . 2 | $ 1 1 8 . 6 | $ 1 8 2 . 3 | $ 2 7 0 . 0 | $ 4 2 1 . 9 | $ 4 1 7 . 1 | $ 4 2 5 . 9 | $ 2 9 1 . 9 | $ 5 7 9 . 0 | $ 5 4 7 . 5 | $674.6 | $1 . 26 | $1 . 52 | $2 . 09 | $2 . 58 | $3 . 35 | $ 3 . 2 4 | $3 . 30 | $2 . 26 | $4 . 47 | $ 4 . 5 4 | $5.87 | |
2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 |
22.2% 16.6%
Compound annual growth rate in net income available to common stockholders over the past ten years.
Compound annual growth rate in diluted earnings per common share over the past ten years.
Total Loans
($ Billions)
$14 . 6 | $16 . 0 | $17 . 1 | $17 . 5 | $19 . 2 | $18 . 3 | $20 . 8 | $26.5 | |||
$3 . 4 | $5 . 1 | $8 . 3 | ||||||||
2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 |
Over the past ten years, our total loans, including purchased loans, have grown at a compound annual rate of 22.9%.
Net Interest Income | 2 | |||||||||
($ Millions) | . | |||||||||
$193 . 5 | $270 . 5 | $382 . 2 | $601 . 5 | $817 . 4 | $891 . 4 | $884 . 2 | $888 . 6 | $989 . 7 | $1,142 | $1,439.5 |
2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 |
Net interest income has grown over the last ten years at a compound annual rate of 22.2%.
Dividends
per Common Share
0. 3 6 | $ 0 . 4 7 | $0 . 55 | $0 . 63 | $0 . 71 | $0 . 795 | $0 . 94 | $1 . 0775 | $ 1 . 1 3 2 5 | $1 . 26 .42 |
$ | 1 | ||||||||
$ |
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Deposits
($ Billions)
$15 . 6 | $17 . 2 | $17 . 9 | $18 . 5 | $21 . 5 | $20 . 2 | $21 . 5 | 7.4 | |||
.0 | ||||||||||
$3 . 7 | $5 . 5 | $8 | $2 | |||||||
2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 |
Over the past ten years, our deposits have grown at a compound annual rate of 22.1%.
Eciency Ratio
45 . 3% | 45 . 3% | 38 . 4% | 35 . 8% | 34 . 9% | 37 . 9% | 40 . 3% | 41 . 4% | 38 . 8% | 35 . 8% |
33.7% | ||||||||||
2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 |
We have worked relentlessly to become one of the most efficient banks in the nation. Our efficiency ratio has ranked in the top decile of the industry for the past 21 years.
Over the past ten years, we have increased dividends paid to our common stockholders at a compound annual rate of 14.7%, and we have increased our cash dividend in each of the last 54 quarters and every year since going public in 1997.
A N N U A L R E P O R T 2 0 2 3 | 05 |
06
OF ASSET QUALITY BETTER THAN THE INDUSTRY
Net Charge-o‰ Ratio
(Total Loans) vs. the Industry
Bank OZK | FDIC-Insured Institutions | |
Net Charge-O‰ Ratio | Net Charge-O‰ Ratio | |
Nonperforming Non-Purchased
Loans ("NPLs")/Total
Non-Purchased Loans %
0 . 6 9 %
0 . 2 6 %
9 % | % | ||
0 . 4 | . 4 4 | ||
0 | |||
0 . 1 6 % | 0 . 1 7 % | ||
0 . 0 7 %0 . 4 7 %
0 . 0 7 %0 . 5 0 %
0 . 3 4 % 0 . 4 8 %
. 5 2 % | 5 0 % | ||
0 | 0 . | ||
. 1 1 % | 0 . 1 6 % | ||
0 | |||
0 . 0 6 %0 . 2 5 %
0 . 0 4 %0 . 2 7 %
0 . 1 3 %0 . 4 7 %
0 . 3 3 % | 0 . 5 3 % | 0 . 2 0 % | 0 . 1 5 % | 0 . 1 0 % | 0 . 2 3 % | 0 . 1 5 % | 0 . 2 5 % | 0 . 1 9 % | 0 . 2 2 % | 0 . 2 3 % |
2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 |
Our net charge-off ratio has consistently compared favorably with the ratio for all FDIC-insured institutions as a group.
2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 |
NPLs were $61 million, or 0.23% of total non-purchased loans, at 12/31/23.
Nonperforming Assets ("NPAs")/Total Assets %†*
0 . 4 3 % | 0 . 8 7 % | 0 . 3 7 % | 0 . 3 1 % | 0 . 1 8 % | 0 . 2 3 % | 0 . 1 8 % | 0 . 2 1 % | 0 . 1 5 % | 0 . 1 9 % | 0 . 3 6 % |
2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 |
Non-Purchased Loans Past Due 30 Days or More Including Past Due Nonaccrual Non-Purchased Loans ("Loans Past Due")/Total Non-Purchased Loans %
0 . 45% | 0 . 7 9 % | 0 . 2 8 % | 0 . 1 6 % | 0 . 1 5 % | 0 . 2 8 % | 0 . 1 9 % | 0 . 1 6 % | 0 . 1 5 % | 0 . 1 3 % | 0 . 2 0 % |
2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 |
NPAs, which include NPLs and foreclosed assets, were $123 million, or 0.36% of total assets,
at 12/31/23.
Loans Past Due were $52 million, or 0.20% of total non-purchased loans, at 12/31/23.
Source: Data from the FDIC Quarterly Banking Profile for 3Q23.
† Ratios exclude purchased loans, except for their inclusion in total assets.
* In 2014, we terminated our loss share agreement with the FDIC and reclassified foreclosed assets previously reported as covered by FDIC loss share to foreclosed assets.
EVEN LONGER TERM PERSPECTIVE
Over our 27 years as a publicly traded company, we have delivered a total shareholder return of 7,233%, compared to the S&P 500 at 733%.
7,233%
Total Shareholder Return
July 1997 | December 2023 |
8 , 0 0 0 %
7 , 0 0 0 %
6 , 0 0 0 %
5 , 0 0 0 %
4 , 0 0 0 %
3 , 0 0 0 %
2 , 0 0 0 %
1 , 0 0 0 %
0
Bank OZK
Total Shareholder Return
S&P 500
Total Shareholder Return
Source: Data obtained from Bloomberg
A N N U A L R E P O R T 2 0 2 3 | 07 |
08
EXCELLENCE OF OUR BOARD CONTRIBUTES TO OUR SUCCESS
Bank OZK Board of Directors as of December 31, 2023.
Back row (left to right):
Nicholas Brown (Vice-Chairman and Presiding Independent Director), Paula Cholmondeley,
Christopher Orndorff, Peter Kenny, George Gleason (Chairman and CEO), Ross Whipple, Jeffrey Gearhart,
Robert East, Kathleen Franklin, Steven Sadoff.
Front row (left to right):
William Koefoed, Elizabeth Musico, Beverly Cole.
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Bank OZK published this content on 14 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 15 March 2024 12:09:10 UTC.
