LITTLE ROCK — Bank OZK (Nasdaq: OZK) announced that net income available to common stockholders for the third quarter of 2022 was $128.3 million, a 1.5% decrease from $130.3 million for the third quarter of 2021. Diluted earnings per common share for the third quarter of 2022 were $1.08, an 8.0% increase from $1.00 for the third quarter of 2021.

For the nine months ended September 30, 2022, net income available to common stockholders was $388.7 million, a 9.4% decrease from $429.2 million for the first nine months of 2021. Diluted earnings per common share for the first nine months of 2022 were $3.20, a 3.0% decrease from $3.30 for the first nine months of 2021.

The bank’s provision for credit losses was $39.8 million for the third quarter and $51.0 million for the first nine months of 2022 compared to negative provisions for credit losses of $7.5 million for the third quarter and $69.9 million for the first nine months of 2021. The growth in both funded and unfunded loan balances during the quarter contributed to the higher provision for credit losses, which impacted net income. The bank’s total allowance for credit losses (“ACL”) was $335.6 million at September 30, 2022. The calculations of the bank’s provision expense for the third quarter and first nine months of 2022 and its total ACL at September 30, 2022 were based on a number of key estimates, assumptions and economic forecasts and included certain qualitative adjustments to capture items not fully reflected in the modeled results.

Pre-tax pre-provision net revenue (“PPNR”) was $208.1 million for the third quarter of 2022, a 27.2% increase from $163.5 million for the third quarter of 2021. For the nine months ended September 30, 2022, PPNR was $564.0 million, a 15.3% increase from $489.0 million for the first nine months of 2021. The calculation of PPNR and the reconciliation to generally accepted accounting principles (“GAAP”) are included in the schedules accompanying this release.

The bank’s annualized returns on average assets, average common stockholders’ equity and average tangible common stockholders’ equity for the third quarter of 2022 were 1.97%, 11.85% and 14.02%, respectively, compared to 1.98%, 11.41% and 13.39%, respectively, for the third quarter of 2021. The bank’s annualized returns on average assets, average common stockholder’s equity and average tangible common stockholders’ equity for the first nine months of 2022 were 1.99%, 11.97%, and 14.14%, respectively, compared to 2.15%, 12.98%, and 15.31%, respectively, for the first nine months of 2021. 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 strong results for the third quarter of 2022. Our results were highlighted by our fourth consecutive quarter of record RESG loan originations and solid growth in RESG’s funded loans, along with meaningful contributions to growth from our Community Banking and other lending teams. This reflects our dual focus on both organic loan growth and increased portfolio diversification. Our strong capital and liquidity, disciplined credit culture and outstanding team have us well positioned for the current environment and the longer term.”