Bank OZK is pleased to report our results for the second quarter of 2022. Highlights include:
- Net Income. Our $132.4 million of net income available to common stockholders and $1.10 diluted earnings per common share improved on our strong results from the first quarter of 2022.
- Quarterly Origination Volume. Our Real Estate Specialties Group (“RESG”) posted its third consecutive quarter of record originations with $3.53 billion of loans originated. This contributed to an increase in our unfunded loan commitments to a record $17.37 billion at June 30, 2022.
- Net Interest Income. Our net interest income increased to $265.8 million. Our core spread, which is how we describe the difference between our yield on non-purchased loans and our cost of interest bearing deposits (“COIBD”), increased to 5.26%, contributing to the increase in our net interest margin to 4.52%.
- Asset Quality. Our ongoing focus on asset quality resulted in annualized net charge-off ratios for the quarter just ended of 0.03% for non-purchased loans and 0.01% for total loans. Our June 30, 2022 ratios of nonperforming non-purchased loans to total non-purchased loans and nonperforming assets to total assets1 were just 0.16% and 0.12%, respectively.
- Efficiency Ratio. Our efficiency ratio for the quarter was 37.3%, among the best in the industry.
- Stock Repurchases & Dividend Growth. During the quarter just ended, we repurchased approximately 3.7 million shares of our common stock for a total of $147.4 million. We recently increased the quarterly dividend on our common stock for the 48th consecutive quarter.
On July 17, 2022, we celebrated the 25th anniversary of our initial public offering (“IPO”). Shareholders who purchased common stock in our IPO and reinvested their dividends in OZK common stock have realized a 17.76% compounded annual return over that 25-year period. That compares favorably to compounded annual returns of 7.83% for the S&P 500 Index and 6.02% for the Nasdaq Bank Index over the same time. We believe our combination of strong earnings and robust capital gives us great optionality to continue to create shareholder value.
George Gleason, Chairman and CEO Comment in Earnings Release
“We are pleased to report our excellent results for the second quarter of 2022. Our results were highlighted by our third consecutive quarter of record RESG loan originations and solid contributions from Community Banking and other lending teams, reflecting the importance of organic growth and increased portfolio diversification in our long-term strategy. Our strong capital and liquidity, disciplined credit culture and outstanding team have us well positioned for the future.”
Full Report and Management Comments
Bank OZK’s Earnings Release and Management Comments for the Second Quarter 2022 are available here.
[1] Excludes purchased loans, except for their inclusion in total assets.
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