GlobeNewswire Inc | Apr 22, 2021 04:01PM EDT

April 22, 2021

LITTLE ROCK, Ark., April 22, 2021 (GLOBE NEWSWIRE) -- Bank OZK (the Bank) (Nasdaq: OZK) today announced that net income for the first quarter of 2021 was a record $148.4 million compared to $11.9 million for the first quarter of 2020. Diluted earnings per common share for the first quarter of 2021 were $1.14 compared to $0.09 for the first quarter of 2020.

As a result of improving economic conditions, management recorded negative provision for credit losses of $31.6 million during the first quarter of 2021, reducing the Banks total allowance for credit losses (ACL) from $377.3 million at December 31, 2020 to $342.3 million at March 31, 2021. The Banks provision for credit losses was $117.7 million during the first quarter of 2020, reflecting significant economic uncertainty at that time. The Banks results for the first quarter of 2021 also included pretax gains of $4.4 million from the sale of its South Carolina branches and $1.4 million of tax-exempt bank-owned life insurance (BOLI) death benefits. The Bank had no gains from branch sales and had $0.6 million of tax-exempt BOLI death benefits during the first quarter of 2020.

Pre-tax pre-provision net revenue (PPNR) was $160.7 million for the first quarter of 2021, a 19.9% increase from $134.0 million for the first quarter of 2020, but a decrease of 1.3% from $162.9 million for the fourth quarter of 2020. The calculation of PPNR and the reconciliation to generally accepted accounting principles (GAAP) are included in the schedules accompanying this release.

The Banks annualized returns on average assets, average common stockholders equity and average tangible common stockholders equity for the first quarter of 2021 were 2.23%, 13.97% and 16.57%, respectively, compared to 0.20%, 1.16% and 1.39%, respectively, for the first quarter of 2020. The calculation of the Banks return on average tangible common stockholders equity and the reconciliation to GAAP are included in the schedules accompanying this release.

George Gleason, Chairman and Chief Executive Officer stated, We are pleased to report excellent results for the first quarter of 2021, including record quarterly net income, strong net interest income, continued improvement in our core spread, excellent asset quality and an efficiency ratio among the best in the industry. Our combination of strong earnings, robust capital and an exceptional team have us well positioned for the future.

KEY BALANCE SHEET METRICS

Total loans were $18.72 billion at March 31, 2021, a 2.7% increase from $18.23 billion at March 31, 2020, but a decrease of 2.6% from $19.21 billion at December 31, 2020. Non-purchased loans were $17.98 billion at March 31, 2021, a 5.6% increase from $17.03 billion at March 31, 2020, but a decrease of 2.3% from $18.40 billion at December 31, 2020. Purchased loans, which consist of loans acquired in previous acquisitions, were $0.74 billion at March 31, 2021, a 38.6% decrease from $1.20 billion at March 31, 2020.

Deposits were $21.30 billion at March 31, 2021, a 13.2% increase from $18.81 billion at March 31, 2020, but a decrease of 0.7% from $21.45 billion at December 31, 2020. Total assets were $27.28 billion at March 31, 2021, an 11.0% increase from $24.57 billion at March 31, 2020.

Common stockholders equity was $4.38 billion at March 31, 2021, a 7.5% increase from $4.08 billion at March 31, 2020. Tangible common stockholders equity was $3.71 billion at March 31, 2021, a 9.1% increase from $3.40 billion at March 31, 2020. Book value per common share was $33.79 at March 31, 2021, a 7.0% increase from $31.57 at March 31, 2020. Tangible book value per common share was $28.60 at March 31, 2021, an 8.7% increase from $26.30 at March 31, 2020. The calculations of the Banks tangible common stockholders equity and tangible book value per common share and the reconciliations to GAAP are included in the schedules accompanying this release.

The Banks ratio of total common stockholders equity to total assets was 16.07% at March 31, 2021 compared to 16.62% at March 31, 2020. Its ratio of total tangible common stockholders equity to total tangible assets was 13.94% at March 31, 2021 compared to 14.24% at March 31, 2020. The calculation of the Banks ratio of total tangible common stockholders equity to total tangible assets and the reconciliation to GAAP are included in the schedules accompanying this release.

MANAGEMENTS COMMENTS, CONFERENCE CALL, TRANSCRIPT AND FILINGS

In connection with this release, the Bank released managements comments on its quarterly results, which are available at http://ir.ozk.com. This release should be read in conjunction with managements comments on the quarterly results.

Management will conduct a conference call to take questions on these quarterly results and managements comments at 10:00 a.m. CT (11:00 a.m. ET) on April 23, 2021. Interested parties may listen to this call by dialing 1-844-818-5110 (U.S. and Canada) or 210-229-8841 (internationally) and asking for the Bank OZK conference call. A recorded playback of the call will be available for one week following the call at 1-855-859-2056 (U.S. and Canada) or 404-537-3406 (internationally). The conference ID for this playback is 4472527. The call will be available live or in a recorded version on the Banks Investor Relations website at ir.ozk.com under Company News/Webcasts. The Bank will also provide a transcript of the conference call on its Investor Relations website.

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 FDICs website at https://efr.fdic.gov/fcxweb/efr/index.html and are also available on the Banks Investor Relations website at http://ir.ozk.com. To receive automated email alerts for these materials, please visit http://ir.ozk.com/EmailNotification 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 tangible common stockholders equity, tangible book value per common share, 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 release and other communications by the Bank include certain forward-looking statements regarding the Banks 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 managements 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 implementing the Banks growth, expansion and acquisition strategies, including delays in identifying satisfactory sites, hiring or retaining qualified personnel, obtaining regulatory or other approvals, obtaining permits and designing, constructing and opening new offices or relocating, selling or closing existing offices; the ability to enter into and/or close additional acquisitions; the availability of and access to capital; possible downgrades in the Banks credit ratings or outlook which could increase the costs or availability of funding from capital markets; the ability to attract new or retain existing or acquired 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; the potential impact of the proposed phase-out of the London Interbank Offered Rate (LIBOR) or other changes involving LIBOR; competitive factors and pricing pressures, including their effect on the Banks 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; changes in legal, financial and/or regulatory requirements; recently enacted and potential legislation and regulatory actions and the costs and expenses to comply with new and/or existing legislation and regulatory actions, including those in response to the COVID-19 pandemic such as the Coronavirus Aid, Relief and Economic Security Act, the Consolidated Appropriations Act of 2021, the American Rescue Plan Act of 2021, and any similar or related laws, rules and regulations; 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 maintaining cybersecurity; the impact of failure in, or breach of, the Banks operational or security systems or infrastructure, or those of third parties with whom it does business, including as a result of cyber-attacks 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 or acts of war or terrorism; the adverse effects of the COVID-19 pandemic, including the duration of the pandemic and actions taken to contain or treat COVID-19, on the Bank, the Banks customers, the Banks staff, the global economy and financial markets; national, international or political instability; impairment of the Banks goodwill or other intangible assets; 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 press release or as detailed from time to time in the other public reports the Bank files with the FDIC, including those factors described in the disclosures under the headings Forward-Looking Information and Item 1A. Risk Factors in the Banks most recent Annual Report on Form 10-K for the year ended December 31, 2020 and its 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 projected 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. Headquartered in Little Rock, Arkansas, Bank OZK conducts operations through more than 250 branches, loan production offices and other offices in Arkansas, Georgia, Florida, North Carolina, Texas, California, New York and Mississippi. 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.

Investor Contact: Tim Hicks (501) 978-2336Media Contact: Susan Blair (501) 978-2217

Bank OZKConsolidated Balance SheetsUnaudited

March 31, December 31, 2021 2020 (Dollars in thousands, except per share amounts)ASSETS Cash and cash equivalents $ 2,216,336 $ 2,393,662 Investment securities ? available for sale 4,162,479 3,405,351 ("AFS")Federal Home Loan Bank of Dallas and other 38,578 38,486 bankers' bank stocksNon-purchased loans 17,979,435 18,401,495 Purchased loans 735,630 807,673 Allowance for loan losses (268,077 ) (295,824 )Net loans 18,446,988 18,913,344 Premises and equipment, net 729,433 738,842 Foreclosed assets 8,436 11,085 Accrued interest receivable 94,265 88,077 Bank owned life insurance (?BOLI?) 761,680 758,071 Goodwill and other intangible assets, net 673,728 675,458 Other, net 144,969 140,220 Total assets $ 27,276,892 $ 27,162,596 LIABILITIES AND STOCKHOLDERS? EQUITY Deposits: Demand non-interest bearing $ 4,196,603 $ 3,996,546 Savings and interest bearing transaction 8,529,229 8,160,982 Time 8,570,610 9,292,828 Total deposits 21,296,442 21,450,356 Repurchase agreements with customers 5,936 8,013 Other borrowings 750,361 750,928 Subordinated notes 224,141 224,047 Subordinated debentures 120,613 120,475 Reserve for losses on unfunded loan 74,230 81,481 commitmentsAccrued interest payable and other 418,860 251,940 liabilitiesTotal liabilities 22,890,583 22,887,240 Commitments and contingencies Stockholders? equity: Preferred stock; $0.01 par value;100,000,000 shares authorized; no shares ? ? issued or outstanding at March 31, 2021 orDecember 31, 2020Common stock; $0.01 par value; 300,000,000shares authorized;129,718,906 and 129,350,448 shares issued 1,297 1,294 and outstanding atMarch 31, 2021 and December 31, 2020,respectivelyAdditional paid-in capital 2,272,046 2,265,850 Retained earnings 2,059,398 1,946,875 Accumulated other comprehensive income 50,464 58,252 Total stockholders? equity before 4,383,205 4,272,271 noncontrolling interestNoncontrolling interest 3,104 3,085 Total stockholders? equity 4,386,309 4,275,356 Total liabilities and stockholders? equity $ 27,276,892 $ 27,162,596

Bank OZKConsolidated Statements of IncomeUnaudited

Three Months Ended March 31, 2021 2020 (Dollars in thousands, except per share amounts)Interest income: Non-purchased loans $ 239,827 $ 231,853 Purchased loans 11,935 21,387 Investment securities: Taxable 8,083 10,760 Tax-exempt 3,681 3,597 Deposits with banks and federal funds 538 4,376 sold Total interest income 264,064 271,973 Interest expense: Deposits 24,350 57,682 Repurchase agreements with customers 4 6 Other borrowings 986 50 Subordinated notes 3,146 3,172 Subordinated debentures 942 1,288 Total interest expense 29,428 62,198 Net interest income 234,636 209,775 Provision for credit losses (31,559 ) 117,663 Net interest income after provision for 266,195 92,112 credit losses Non-interest income: Service charges on deposit accounts 9,665 10,009 Trust income 2,206 1,939 BOLI income: Increase in cash surrender value 4,881 5,067 Death benefits 1,409 608 Loan service, maintenance and other fees 3,551 3,716 Gains on sales of other assets 5,828 161 Net gains on investment securities ? 2,223 Other 4,577 3,957 Total non-interest income 32,117 27,680 Non-interest expense: Salaries and employee benefits 53,645 51,473 Net occupancy and equipment 16,468 15,330 Other operating expenses 35,946 36,622 Total non-interest expense 106,059 103,425 Income before taxes 192,253 16,367 Provision for income taxes 43,818 4,509 Net income 148,435 11,858 Earnings attributable to noncontrolling (19 ) 8 interestNet income available to common $ 148,416 $ 11,866 stockholders Basic earnings per common share $ 1.15 $ 0.09 Diluted earnings per common share $ 1.14 $ 0.09

Bank OZKConsolidated Statements of Stockholders EquityUnaudited

Additional Accumulated Non- Common Paid-In Retained Other Controlling Total Stock Capital Earnings Comprehensive Interest Income (Dollars in thousands, except per share amounts) Three monthsended March 31, 2021:Balances ?December 31, $ 1,294 $ 2,265,850 $ 1,946,875 $ 58,252 $ 3,085 $ 4,275,356 2020Net income ? ? 148,435 ? ? 148,435 Earningsattributable to ? ? (19 ) ? 19 ? noncontrollinginterestTotal othercomprehensive ? ? ? (7,788 ) ? (7,788 )lossCommon stockdividends, ? ? (35,893 ) ? ? (35,893 )$0.2775 pershareIssuance of128,100 sharesof common 1 4,492 ? ? ? 4,493 stock forexercise ofstock optionsIssuance of312,503 sharesof unvested 3 (3 ) ? ? ? ? restrictedcommon stockRepurchase andcancellation of55,740 (1 ) (1,970 ) ? ? ? (1,971 )shares ofcommon stockStock-basedcompensation ? 3,677 ? ? ? 3,677 expenseForfeitures of16,405 sharesof unvested ? ? ? ? ? ? restrictedcommon stockBalances ? $ 1,297 $ 2,272,046 $ 2,059,398 $ 50,464 $ 3,104 $ 4,386,309 March 31, 2021 Three monthsended March 31, 2020:Balances ?December 31, $ 1,289 $ 2,251,824 $ 1,869,983 $ 27,255 $ 3,117 $ 4,153,468 2019Cumulativeeffect ofchange ? ? (75,344 ) ? ? (75,344 )in accountingprincipleBalances ? 1,289 2,251,824 1,794,639 27,255 3,117 4,078,124 January 1, 2020Net income ? ? 11,858 ? ? 11,858 Earningsattributable to ? ? 8 ? (8 ) ? noncontrollinginterestTotal othercomprehensive ? ? ? 27,633 ? 27,633 incomeCommon stockdividends, ? ? (33,527 ) ? ? (33,527 )$0.26 pershareIssuance of4,300 shares ofcommon ? 45 ? ? ? 45 stock forexercise ofstock optionsIssuance of447,085 sharesof unvested 4 (4 ) ? ? ? ? restrictedcommon stockRepurchase andcancellation of61,873 ? (1,853 ) ? ? ? (1,853 )shares ofcommon stockStock-basedcompensation ? 3,979 ? ? ? 3,979 expenseForfeitures of16,101 sharesof unvested ? ? ? ? ? ? restrictedcommon stockBalances ? $ 1,293 $ 2,253,991 $ 1,772,978 $ 54,888 $ 3,109 $ 4,086,259 March 31, 2020

Bank OZKSummary of Non-Interest ExpenseUnaudited

Three Months Ended March 31, 2021 2020 (Dollars in thousands) Salaries and employee benefits $ 53,645 $ 51,473 Net occupancy and equipment 16,468 15,330 Other operating expenses: Professional and outside services 6,326 6,764 Software and data processing 5,792 4,974 Deposit insurance and assessments 3,520 3,420 Telecommunication services 2,232 2,177 Postage and supplies 1,645 2,053 Writedowns of foreclosed and other assets 1,363 879 ATM expense 1,283 1,160 Travel and meals 774 2,102 Loan collection and repossession expense 509 694 Advertising and public relations 308 1,703 Amortization of intangibles 1,730 2,795 Amortization of CRA and tax credit 4,125 2,740 investmentsOther 6,339 5,161 Total non-interest expense $ 106,059 $ 103,425

Bank OZKSummary of Total Loans OutstandingUnaudited

March 31, 2021 December 31, 2020 (Dollars in thousands) Real estate: Residential 1-4 $ 869,585 4.6 % $ 911,115 4.7 %familyNon-farm/ 4,406,692 23.5 4,213,636 21.9 non-residentialConstruction/land 7,733,670 41.3 8,046,978 41.9 developmentAgricultural 212,681 1.1 204,868 1.1 Multifamily 797,847 4.3 856,297 4.5 residentialTotal real estate 14,020,475 74.8 14,232,894 74.1 Commercial and 790,568 4.2 842,206 4.4 industrialConsumer 2,275,011 12.2 2,393,964 12.5 Other 1,629,011 8.8 1,740,104 9.0 Total loans 18,715,065 100.0 % 19,209,168 100.0 %Allowance for loan (268,077 ) (295,824 ) lossesNet loans $ 18,446,988 $ 18,913,344

Bank OZKAllowance for Credit LossesUnaudited

Allowance for Reserve for Losses on Total Allowance Loan Losses Unfunded Loan for Credit Commitments Losses (Dollars in thousands) Three monthsended March 31, 2021:Balances ?December 31, $ 295,824 $ 81,481 $ 377,305 2020Net (3,439 ) ? (3,439 )charge-offsProvision (24,308 ) (7,251 ) (31,559 )Balances ?March 31, $ 268,077 $ 74,230 $ 342,307 2021 Three monthsended March 31, 2020:Balances ?December 31, $ 108,525 $ ? $ 108,525 2019Adoption ofCECL 39,588 54,924 94,512 methodologyBalances ?January 1, 148,113 54,924 203,037 2020Net (4,291 ) ? (4,291 )charge-offsProvision 94,915 22,748 117,663 Balances ?March 31, $ 238,737 $ 77,672 $ 316,409 2020

Bank OZKSummary of Deposits By Account TypeUnaudited

March 31, 2021 December 31, 2020 (Dollars in thousands) Non-interest $ 4,196,603 19.7 % $ 3,996,546 18.6 %bearingInterest bearing: Transaction (NOW) 3,253,715 15.3 3,124,007 14.6 Savings and money 5,275,514 24.8 5,036,975 23.5 marketTime deposits less 2,657,568 12.5 3,075,845 14.3 than $100Time deposits of 5,913,042 27.7 6,216,983 29.0 $100 or moreTotal deposits $ 21,296,442 100.0 % $ 21,450,356 100.0 %

Summary of Deposits By Customer TypeUnaudited

March 31, 2021 December 31, 2020 (Dollars in thousands) Consumer $ 11,252,744 52.8 % $ 11,165,603 52.1 %Commercial 6,259,409 29.4 6,056,536 28.2 Public Funds 2,048,909 9.6 2,111,971 9.8 Brokered 1,210,155 5.7 1,600,116 7.5 Reciprocal 525,225 2.5 516,130 2.4 Total $ 21,296,442 100.0 % $ 21,450,356 100.0 %deposits

Bank OZKSelected Consolidated Financial DataUnaudited

Three Months Ended March 31, 2021 2020 % Change (Dollars in thousands, except per share amounts)Income statement data: Net interest income $ 234,636 $ 209,775 11.9 %Provision for credit losses (31,559 ) 117,663 (126.8 )Non-interest income 32,117 27,680 16.0 Non-interest expense 106,059 103,425 2.5 Net income available to common 148,416 11,866 1,150.8 stockholdersPre-tax pre-provision net 160,694 134,030 19.9 revenue^(1)Common share and per common share data:Net income per share ? diluted $ 1.14 $ 0.09 1,166.7 %Net income per share ? basic 1.15 0.09 1,177.8 Dividends per share 0.2775 0.26 6.7 Book value per share 33.79 31.57 7.0 Tangible book value per share^ 28.60 26.30 8.7 (1)Weighted-average diluted shares 129,816 129,307 0.4 outstanding (thousands)End of period shares 129,719 129,324 0.3 outstanding (thousands)Balance sheet data at period end:Total assets $ 27,276,892 $ 24,565,810 11.0 %Total loans 18,715,065 18,228,204 2.7 Non-purchased loans 17,979,435 17,030,378 5.6 Purchased loans 735,630 1,197,826 (38.6 )Allowance for loan losses 268,077 238,737 12.3 Foreclosed assets 8,436 20,616 (59.1 )Investment securities ? AFS 4,162,479 2,816,556 47.8 Goodwill and other intangible 673,728 681,747 (1.2 )assets, netDeposits 21,296,442 18,809,190 13.2 Other borrowings 750,361 1,051,353 (28.6 )Subordinated notes 224,141 223,759 0.2 Subordinated debentures 120,613 120,055 0.5 Unfunded balance of closed 11,780,099 11,334,737 3.9 loansReserve for losses on unfunded 74,230 77,672 (4.4 )loan commitmentsTotal common stockholders? 4,383,205 4,083,150 7.3 equityNet unrealized gains oninvestment securities AFS 50,464 54,888 included in commonstockholders' equityLoan (including purchased 87.88 % 96.91 % loans) to deposit ratioSelected ratios: Return on average assets^(2) 2.23 % 0.20 % Return on average common 13.97 1.16 stockholders? equity^(2)Return on average tangiblecommon stockholders? equity^(1) 16.57 1.39 (2)Average common equity to total 15.93 17.31 average assetsNet interest margin ? FTE^(2) 3.86 3.96 Efficiency ratio 39.57 43.35 Net charge-offs to average 0.08 0.08 non-purchased loans^(2) (3)Net charge-offs to average 0.07 0.10 total loans^(2)Nonperforming loans to total 0.25 0.16 loans^(4)Nonperforming assets to total 0.19 0.19 assets^(4)Allowance for loan losses to 1.43 1.31 total loans^(5)Other information: Non-accrual loans^(4) $ 43,059 $ 25,681 Accruing loans ? 90 days past ? ? due^(4)Troubled and restructurednon-purchased loans ? accruing^ 1,380 757 (4)

^(1) Calculations of pre-tax pre-provision net revenue, tangible book value percommon share and return on average tangible common stockholders? equity and thereconciliations to GAAP are included in the schedules accompanying thisrelease.^(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.

Selected Consolidated Financial Data (continued)Unaudited

Three Months Ended March 31, December 31, 2021 2020 % Change (Dollars in thousands, except per share amounts)Income statement data: Net interest income $ 234,636 $ 237,600 (1.2 ) %Provision for credit losses (31,559 ) 6,750 (567.5 )Non-interest income 32,117 28,661 12.1 Non-interest expense 106,059 103,394 2.6 Net income available to common 148,416 120,513 23.2 stockholdersPre-tax pre-provision net 160,694 162,867 (1.3 )revenue^(1)Common share and per common share data:Net income per share ? diluted $ 1.14 $ 0.93 22.6 %Net income per share ? basic 1.15 0.93 23.7 Dividends per share 0.2775 0.275 0.9 Book value per share 33.79 33.03 2.3 Tangible book value per share^ 28.60 27.81 2.8 (1)Weighted-average diluted shares 129,816 129,523 0.2 outstanding (thousands)End of period shares outstanding 129,719 129,350 0.3 (thousands)Balance sheet data at period end:Total assets $ 27,276,892 $ 27,162,596 0.4 %Total loans 18,715,065 19,209,168 (2.6 )Non-purchased loans 17,979,435 18,401,495 (2.3 )Purchased loans 735,630 807,673 (8.9 )Allowance for loan losses 268,077 295,824 (9.4 )Foreclosed assets 8,436 11,085 (23.9 )Investment securities ? AFS 4,162,479 3,405,351 22.2 Goodwill and other intangible 673,728 675,458 (0.3 )assets, netDeposits 21,296,442 21,450,356 (0.7 )Other borrowings 750,361 750,928 (0.1 )Subordinated notes 224,141 224,047 0.1 Subordinated debentures 120,613 120,475 0.1 Unfunded balance of closed loans 11,780,099 11,847,117 (0.6 )Reserve for losses on unfunded 74,230 81,481 (8.9 )loan commitmentsTotal common stockholders? 4,383,205 4,272,271 2.6 equityNet unrealized gains oninvestment securities AFS 50,464 58,252 included in common stockholders'equityLoan (including purchased loans) 87.88 % 89.55 % to deposit ratioSelected ratios: Return on average assets^(2) 2.23 % 1.79 % Return on average common 13.97 11.36 stockholders? equity^(2)Return on average tangiblecommon stockholders? equity^(1) 16.57 13.53 (2)Average common equity to total 15.93 15.74 average assetsNet interest margin ? FTE^(2) 3.86 3.88 Efficiency ratio 39.57 38.61 Net charge-offs to average 0.08 0.14 non-purchased loans^(2) (3)Net charge-offs to average total 0.07 0.14 loans^(2)Nonperforming loans to total 0.25 0.25 loans^(4)Nonperforming assets to total 0.19 0.21 assets^(4)Allowance for loan losses to 1.43 1.54 total loans^(5)Other information: Non-accrual loans^(4) $ 43,059 $ 44,402 Accruing loans ? 90 days past ? ? due^(4)Troubled and restructurednon-purchased loans ? accruing^ 1,380 1,483 (4)

(1)Calculations of pre-tax pre-provision net revenue, tangible book value per common share and return on 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.

Bank OZKSupplemental Quarterly Financial DataUnaudited

6/30/19 9/30/19 12/31/19 3/31/20 6/30/20 9/30/20 12/31/20 3/31/21 (Dollars in thousands, except per share amounts) Earnings Summary: Net interest $ 224,536 $ 218,780 $ 214,977 $ 209,775 $ 216,593 $ 224,657 $ 237,600 $ 234,636 incomeFederal tax (FTE) 1,136 1,038 1,028 1,133 1,753 1,605 1,533 1,275 adjustmentNet interest 225,672 219,818 216,005 210,908 218,346 226,262 239,133 235,911 income (FTE)Provision for (6,769 ) (7,854 ) (4,938 ) (117,663 ) (72,026 ) (7,200 ) (6,750 ) 31,559 credit lossesNon-interest 26,603 26,446 30,406 27,680 21,591 26,676 28,661 32,117 incomeNon-interest (99,131 ) (100,914 ) (104,406 ) (103,425 ) (100,953 ) (105,641 ) (103,394 ) (106,059 )expensePretax income 146,375 137,496 137,067 17,500 66,958 140,097 157,650 193,528 (FTE)FTE adjustment (1,136 ) (1,038 ) (1,028 ) (1,133 ) (1,753 ) (1,605 ) (1,533 ) (1,275 )Provision for (34,726 ) (32,574 ) (35,240 ) (4,509 ) (14,948 ) (29,251 ) (35,607 ) (43,818 )income taxesNoncontrolling (10 ) 7 7 8 9 12 3 (19 )interestNet incomeavailable to $ 110,503 $ 103,891 $ 100,806 $ 11,866 $ 50,266 $ 109,253 $ 120,513 $ 148,416 commonstockholdersEarnings percommon share ? $ 0.86 $ 0.81 $ 0.78 $ 0.09 $ 0.39 $ 0.84 $ 0.93 $ 1.14 dilutedNon-interest Income:Service charges on $ 10,291 $ 10,827 $ 10,933 $ 10,009 $ 8,281 $ 9,427 $ 9,983 $ 9,665 deposit accountsTrust income 1,839 1,975 2,010 1,939 1,759 1,936 1,909 2,206 BOLI income: Increase in cash 5,178 5,208 5,167 5,067 5,057 5,081 5,034 4,881 surrender valueDeath benefits ? 206 2,989 608 ? ? ? 1,409 Loan service,maintenance and 4,565 4,197 4,282 3,716 3,394 3,351 3,797 3,551 other feesGains on sales of 402 189 1,358 161 621 891 5,189 5,828 other assetsNet gains oninvestment 713 ? ? 2,223 ? 2,244 ? ? securitiesOther 3,615 3,844 3,667 3,957 2,479 3,746 2,749 4,577 Total non-interest $ 26,603 $ 26,446 $ 30,406 $ 27,680 $ 21,591 $ 26,676 $ 28,661 $ 32,117 incomeNon-interest Expense:Salaries and $ 47,558 $ 48,376 $ 52,050 $ 51,473 $ 48,410 $ 53,119 $ 53,832 $ 53,645 employee benefitsNet occupancy and 14,587 14,825 14,855 15,330 15,756 16,676 15,617 16,468 equipmentOther operating 36,986 37,713 37,501 36,622 36,787 35,846 33,945 35,946 expensesTotal non-interest $ 99,131 $ 100,914 $ 104,406 $ 103,425 $ 100,953 $ 105,641 $ 103,394 $ 106,059 expenseBalance Sheet Data:Total assets $ 22,960,731 $ 23,402,679 $ 23,555,728 $ 24,565,810 $ 26,380,409 $ 26,888,308 $ 27,162,596 $ 27,276,892 Non-purchased 15,786,809 16,307,621 16,224,539 17,030,378 18,247,431 18,419,958 18,401,495 17,979,435 loansPurchased loans 1,698,396 1,427,230 1,307,504 1,197,826 1,063,647 938,485 807,673 735,630 Investment 2,548,489 2,414,722 2,277,389 2,816,556 3,299,944 3,468,243 3,405,351 4,162,479 securities ? AFSDeposits 18,186,215 18,440,078 18,474,259 18,809,190 20,723,598 21,287,405 21,450,356 21,296,442 Unfunded balance 11,167,055 11,429,918 11,325,598 11,334,737 11,411,441 11,604,614 11,847,117 11,780,099 of closed loansCommonstockholders' 3,993,247 4,078,324 4,150,351 4,083,150 4,110,666 4,186,285 4,272,271 4,383,205 equity

Bank OZKSupplemental Quarterly Financial Data (Continued)Unaudited

6/30/19 9/30/19 12/31/19 3/31/20 6/30/20 9/30/20 12/31/20 3/31/21 (Dollars in thousands, except per share amounts) Allowance for Credit Losses:Balance atbeginning of $ 105,954 $ 106,642 $ 109,001 $ 108,525 $ 316,409 $ 374,494 $ 377,273 $ 377,305 periodAdoption of CECL^ ? ? ? 94,512 ? ? ? ? (1) methodologyNet charge-offs (6,081 ) (5,495 ) (5,414 ) (4,291 ) (13,941 ) (4,421 ) (6,718 ) (3,439 )Provision for 6,769 7,854 4,938 117,663 72,026 7,200 6,750 (31,559 )credit lossesBalance at end of $ 106,642 $ 109,001 $ 108,525 $ 316,409 $ 374,494 $ 377,273 $ 377,305 $ 342,307 periodAllowance for loan $ 106,642 $ 109,001 $ 108,525 $ 238,737 $ 306,196 $ 308,847 $ 295,824 $ 268,077 lossesReserve for losseson unfunded loan ? ? ? 77,672 68,298 68,426 81,481 74,230 commitmentsTotal allowance $ 106,642 $ 109,001 $ 108,525 $ 316,409 $ 374,494 $ 377,273 $ 377,305 $ 342,307 for credit lossesSelected Ratios: Net interest 4.45 % 4.26 % 4.15 % 3.96 % 3.74 % 3.69 % 3.88 % 3.86 %margin ? FTE^(2)Efficiency ratio 39.30 40.98 42.37 43.35 42.07 41.77 38.61 39.57 Net charge-offs toaverage 0.12 0.07 0.10 0.08 0.05 0.09 0.14 0.08 non-purchasedloans^(2) (3)Net charge-offs toaverage total 0.14 0.12 0.12 0.10 0.29 0.09 0.14 0.07 loans^(2)Nonperformingloans to total 0.15 0.17 0.15 0.16 0.18 0.15 0.25 0.25 loans^(4)Nonperformingassets to total 0.25 0.26 0.18 0.19 0.19 0.17 0.21 0.19 assets^(4)Allowance for loanlosses to total 0.61 0.61 0.62 1.31 1.59 1.60 1.54 1.43 loans ^(5)Loans past due 30days or more,including 0.13 0.14 0.19 0.18 0.13 0.13 0.16 0.13 past duenon-accrual loans,to total loans^(4)

(1) Current Expected Credit Loss.(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.

Bank OZKAverage Consolidated Balance Sheets and Net Interest Analysis FTEUnaudited

Three Months Ended March 31, 2021 2020 Average Income/ Yield/ Average Income/ Yield/ Balance Expense Rate Balance Expense Rate (Dollars in thousands) ASSETS Earning assets: Interest earningdeposits and $ 2,212,680 $ 538 0.10 % $ 1,367,297 $ 4,376 1.29 %federal fundssoldInvestment securities:Taxable 2,422,127 8,083 1.35 1,796,061 10,760 2.41 Tax-exempt ? FTE 1,167,827 4,659 1.62 486,062 4,553 3.77 Non-purchased 18,188,269 240,124 5.35 16,526,270 232,030 5.65 loans ? FTEPurchased loans 776,097 11,935 6.24 1,265,413 21,387 6.80 Total earning 24,767,000 265,339 4.34 21,441,103 273,106 5.12 assets ? FTENon-interest 2,279,477 2,353,330 earning assetsTotal assets $ 27,046,477 $ 23,794,433 LIABILITIES ANDSTOCKHOLDERS? EQUITYInterest bearing liabilities:Deposits: Savings andinterest bearing $ 8,337,990 $ 3,616 0.18 % $ 8,131,400 $ 19,747 0.98 %transactionTime deposits of 6,095,614 13,913 0.93 4,388,337 22,190 2.03 $100 or moreOther time 2,900,579 6,821 0.95 3,333,529 15,745 1.90 depositsTotal interest 17,334,183 24,350 0.57 15,853,266 57,682 1.46 bearing depositsRepurchaseagreements with 5,800 4 0.26 7,883 6 0.32 customersOther borrowings^ 750,384 986 0.53 296,969 50 0.07 (1)Subordinated 224,092 3,146 5.69 223,711 3,172 5.70 notesSubordinated 120,540 942 3.17 119,984 1,288 4.31 debentures^(1)Total interestbearing 18,434,999 29,428 0.65 16,501,813 62,198 1.52 liabilitiesNon-interestbearing liabilities:Non-interest 3,972,815 2,927,296 bearing depositsOthernon-interest 328,401 243,598 bearingliabilitiesTotal liabilities 22,736,215 19,672,707 Commonstockholders? 4,307,174 4,118,614 equityNoncontrolling 3,088 3,112 interestTotal liabilitiesand stockholders? $ 27,046,477 $ 23,794,433 equityNet interest $ 235,911 $ 210,908 income ? FTENet interest 3.86 % 3.96 %margin ? FTECore spread^(2) 4.78 % 4.19 %

(1)The interest expense and the rates for other borrowings and for subordinated debentures were affected by capitalized interest. Capitalized interest included in other borrowings totaled $0.03 million for the first quarter of 2021 compared to $0.36 million for the first quarter of 2020. In the absence of this interest capitalization, the rates on other borrowings would have been 0.55% for the first quarter of 2021 and 0.55% for the first quarter of 2020. Capitalized interest included in subordinated debentures totaled $0.14 million for the first quarter of 2020 (none in the first quarter of 2021). In the absence of this interest capitalization, the rate on subordinated debentures would have been 4.80% for the first quarter of 2020.

(2)Core spread is the difference between the yield on the Banks non-purchased loans-FTE and the cost of its interest bearing deposits.

Bank OZKReconciliation of Non-GAAP Financial Measures

Calculation of Average Tangible Common Stockholders Equityand the Annualized Return on Average Tangible Common Stockholders EquityUnaudited

Three Months Ended March 31, December 31, 2021 2020 2020 (Dollars in thousands) Net income available to common $ 148,416 $ 11,866 $ 120,513 stockholdersAverage common stockholders?equity before $ 4,307,174 $ 4,118,614 $ 4,219,249 noncontrolling interestLess average intangible assets: Goodwill (660,789 ) (660,789 ) (660,789 )Core deposit and other intangibleassets, net of (13,828 ) (22,412 ) (15,578 )accumulated amortizationTotal average intangibles (674,617 ) (683,201 ) (676,367 )Average tangible common $ 3,632,557 $ 3,435,413 $ 3,542,882 stockholders? equityReturn on average common 13.97 % 1.16 % 11.36 %stockholders? equity^(1)Return on average tangible commonstockholders' 16.57 % 1.39 % 13.53 %equity^(1)

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

Calculation of Total Tangible Common Stockholders Equityand Tangible Book Value per Common ShareUnaudited

March 31, December 31, 2021 2020 2020 (In thousands, except per share amounts) Total common stockholders?equity before noncontrolling $ 4,383,205 $ 4,083,150 $ 4,272,271 interestLess intangible assets: Goodwill (660,789 ) (660,789 ) (660,789 )Core deposit and otherintangible assets, net of (12,939 ) (20,958 ) (14,669 )accumulatedamortizationTotal intangibles (673,728 ) (681,747 ) (675,458 )Total tangible common $ 3,709,477 $ 3,401,403 $ 3,596,813 stockholders' equityShares of common stock 129,719 129,324 129,350 outstandingBook value per common share $ 33.79 $ 31.57 $ 33.03 Tangible book value per common $ 28.60 $ 26.30 $ 27.81 share

Calculation of Total Tangible Common Stockholders Equityand the Ratio of Total Tangible Common Stockholders Equityto Total Tangible AssetsUnaudited

March 31, 2021 2020 (Dollars in thousands) Total common stockholders? equity before $ 4,383,205 $ 4,083,150 noncontrolling interestLess intangible assets: Goodwill (660,789 ) (660,789 )Core deposit and other intangible assets, net (12,939 ) (20,958 )of accumulated amortizationTotal intangibles (673,728 ) (681,747 )Total tangible common stockholders' equity $ 3,709,477 $ 3,401,403 Total assets $ 27,276,892 $ 24,565,810 Less intangible assets: Goodwill (660,789 ) (660,789 )Core deposit and other intangible assets, net (12,939 ) (20,958 )of accumulated amortizationTotal intangibles (673,728 ) (681,747 )Total tangible assets $ 26,603,164 $ 23,884,063 Ratio of total common stockholders? equity to 16.07 % 16.62 %total assetsRatio of total tangible common stockholders?equity to total 13.94 % 14.24 %tangible assets

Calculation of Pre-Tax Pre-Provision Net RevenueUnaudited

Three Months Ended March 31, December 31, 2021 2020 2020 (Dollars in thousands) Income before taxes $ 192,253 $ 16,367 $ 156,117 Provision for credit losses (31,559 ) 117,663 6,750 Pre-tax pre-provision net $ 160,694 $ 134,030 $ 162,867 revenue