Bank OZK profits drop 5.4% in 2022 despite strong Q4

by Roby Brock ([email protected]) 311 views 

The new Bank OZK headquarters in west Little Rock.

Little Rock-based Bank OZK reported Thursday (Jan. 19) that net income for the fourth quarter of 2022 was $158.8 million, up 6.1%. Diluted earnings per common share for the fourth quarter of 2022 were $1.34, a 14.5% increase from $1.17 for the fourth quarter of 2021.

For the full year of 2022, net income available to common stockholders was $547.5 million, a 5.4% decrease from $579 million for the full year of 2021. Diluted earnings per common share for the full year of 2022 were a record $4.54, a 1.6% increase from $4.47 for the full year of 2021. Results were impacted by a $83.5 million provision for credit losses for 2022 compared to a negative provision for credit losses of $77.9 million for 2021, bank officials said.

“We are pleased to report our strong results for the fourth quarter and full year of 2022. Our high level of profitability, strong capital and liquidity, disciplined credit culture and outstanding team have us well-positioned for the current environment and the longer term,” said George Gleason, Bank OZK chairman and Chief Executive Officer.

Financial highlights included:

  • Total loans were $20.78 billion at December 31, 2022, a 13.5% increase from $18.31 billion at December 31, 2021;
  • Non-purchased loans were $20.4 billion at December 31, 2022, a 14.7% increase from $17.79 billion at December 31, 2021;
  • Purchased loans, which consist of loans acquired in previous acquisitions, were $0.38 billion at December 31, 2022, a 26.7% decrease from $0.52 billion at December 31, 2021;
  • Deposits were $21.5 billion at December 31, 2022, a 6.4% increase from $20.21 billion at December 31, 2021; and
  • Total assets were $27.66 billion at December 31, 2022, a 4.2% increase from $26.53 billion at December 31, 2021.

Shares of Bank OZK (NASDAQ:OZK) closed trading Thursday at $40.15. The company’s stock has traded between a low of $34.79 per share and a high of $49.46 per share over the past 52 weeks.