Artificial Intelligence
Bank OZK Announces Record Second Quarter 2023 Earnings
LITTLE ROCK, Ark., July 20, 2023 (GLOBE NEWSWIRE) — Bank OZK (the “Bank”) (Nasdaq: OZK) today announced that net income available to common stockholders for the second quarter of 2023 was a record $167.9 million, a 26.9% increase from $132.4 million for the second quarter of 2022. Diluted earnings per common share for the second quarter of 2023 were a record $1.47, a 33.6% increase from $1.10 for the second quarter of 2022.
For the six months ended June 30, 2023, net income available to common stockholders was $333.8 million, a 28.2% increase from $260.4 million for the first six months of 2022. Diluted earnings per common share for the first six months of 2023 were $2.88, a 35.8% increase from $2.12 for the first six months of 2022.
Pre-tax pre-provision net revenue (“PPNR”) was $259.5 million for the second quarter of 2023, a 41.9% increase from $182.8 million for the second quarter of 2022. For the first six months of 2023, PPNR was $505.9 million, a 42.1% increase from $355.9 million for the first six months of 2022. The calculation of PPNR and the reconciliation to generally accepted accounting principles (“GAAP”) are included in the schedules accompanying this release.
Provision for credit losses was $41.8 million for the second quarter and $77.6 million for the first six months of 2023 compared to $7.0 million for the second quarter of 2022 and $11.2 million for the first six months of 2022. The Bank’s total allowance for credit losses (“ACL”) was $426.8 million at June 30, 2023 compared to $299.9 million at June 30, 2022.
The Bank’s annualized returns on average assets, average common stockholders’ equity and average tangible common stockholders’ equity for the second quarter of 2023 were 2.27%, 15.14% and 17.78%, respectively, compared to 2.02%, 12.40% and 14.69%, respectively, for the second quarter of 2022. The Bank’s annualized returns on average assets, average common stockholders’ equity and average tangible common stockholders’ equity for the first six months of 2023 were 2.34%, 15.19% and 17.86%, respectively, compared to 2.00%, 12.03% and 14.20%, respectively, for the first six months of 2022. 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 record results for the quarter just ended, which continued our long tradition of industry-leading performance. Our strong earnings and capital have us well-positioned to grow and capitalize on opportunities resulting from the current macroeconomic and industry environment.”
KEY BALANCE SHEET METRICS
Total loans were $23.61 billion at June 30, 2023, a 26.0% increase from $18.74 billion at June 30, 2022. Deposits were $23.98 billion at June 30, 2023, a 20.0% increase from $19.98 billion at June 30, 2022. Total assets were $30.76 billion at June 30, 2023, an 18.7% increase from $25.92 billion at June 30, 2022.
Common stockholders’ equity was $4.47 billion at June 30, 2023, a 4.8% increase from $4.27 billion at June 30, 2022. Tangible common stockholders’ equity was $3.81 billion at June 30, 2023, a 5.8% increase from $3.60 billion at June 30, 2022. During the quarter just ended, the Bank repurchased approximately 1.96 million shares for $66.1 million, which equates to a weighted average cost of approximately $33.80 per share. During the first six months of 2023, the Bank repurchased 4.3 million shares for $151.5 million, which equates to a weighted average cost of approximately $35.19 per share.
Book value per common share was $39.51 at June 30, 2023, a 10.1% increase from $35.87 at June 30, 2022. Tangible book value per common share was $33.67 at June 30, 2023, an 11.2% increase from $30.27 at June 30, 2022.
The Bank’s ratio of total common stockholders’ equity to total assets was 14.53% at June 30, 2023, compared to 16.47% at June 30, 2022. Its ratio of total tangible common stockholders’ equity to total tangible assets was 12.66% at June 30, 2023, compared to 14.26% at June 30, 2022. The calculations of the Bank’s total common stockholders’ equity, tangible common stockholders’ equity, tangible book value per common share, and ratio of total tangible common stockholders’ equity to total tangible assets and the reconciliations to GAAP are included in the schedules accompanying this release.
ASSET QUALITY
The Bank’s ratio of nonperforming non-purchased loans to total loans (excluding purchased loans) was 0.15% at June 30, 2023, compared to 0.16% as of June 30, 2022. The Bank’s ratio of nonperforming assets to total assets (excluding purchased loans, except for their inclusion in total assets) was 0.32% at June 30, 2023, compared to 0.12% as of June 30, 2022. The Bank’s annualized ratio of net charge-offs of total loans to average total loans was 0.15% for the second quarter and six months ended June 30, 2023 compared to 0.01% for the second quarter and 0.00% for the six months ended June 30, 2022.
MANAGEMENT’S COMMENTS, CONFERENCE CALL, TRANSCRIPT AND FILINGS
In connection with this release, the Bank released management’s comments on its quarterly results, which are available at http://ir.ozk.com. This release should be read in conjunction with management’s comments on the quarterly results.
Management will conduct a conference call to take questions at 10:00 a.m. CT (11:00 a.m. ET) on Friday, July 21, 2023. Interested parties may access the conference call live via webcast on the Bank’s investor relations website at https://ir.ozk.com/news/event-calendar, or may participate via telephone by registering using this online form. Upon registration, all telephone participants will receive the dial-in number along with a unique PIN number that can be used to access the call. A replay of the conference call webcast will be archived on the Bank’s website for at least 30 days.
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 FDIC’s website at https://efr.fdic.gov/fcxweb/efr/index.html and are also available on the Bank’s investor relations website at ir.ozk.com. To receive automated email alerts for these materials please visit https://ir.ozk.com/other/email-alerts 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 common stockholders’ equity, return on average tangible common stockholders’ equity, tangible book value per common share, total common stockholders’ equity, 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 press release and other communications by the Bank include certain “forward-looking statements” regarding the Bank’s 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 management’s 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 in implementing the Bank’s growth and expansion strategies, including hiring or retaining qualified personnel, obtaining regulatory or other approvals, delays in identifying satisfactory sites, obtaining permits and designing, constructing and opening new offices or relocating, selling or closing existing offices; the availability of and access to capital; possible downgrades in the Bank’s credit ratings or outlook which could increase the costs of or decrease the availability of funding from capital markets; the ability to attract new or retain existing 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; competitive factors and pricing pressures, including their effect on the Bank’s 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; conditions within the banking industry, including the effects of recent failures of other financial institutions; recently enacted and potential laws and regulatory requirements, or changes to existing laws and regulatory requirements, including changes affecting oversight of the financial services industry, changes intended to manage or mitigate climate and related environmental risks, or changes in the interpretation and enforcement of such laws and requirements, and the costs and expenses to comply with new and/or existing legislation and regulatory requirements; uncertainty regarding 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 artificial intelligence and maintaining cybersecurity; the impact of failure in, or breach of, our operational or security systems or infrastructure, or those of third parties with whom we do business, including as a result of cyberattacks 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; acts of war or terrorism; the potential impact of continuing inflationary pressures; the potential impact of supply chain disruptions; national or international political instability or military conflict, including the ongoing war in Ukraine; the competition and costs of recruiting and retaining human talent; impairment of our goodwill; 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 communication or as detailed from time to time in our public filings, including those factors described in the disclosures under the headings “Forward-Looking Information” and “Item 1A. Risk Factors” in our most recent Annual Report on Form 10-K for the year ended December 31, 2022 and our 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 described 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. Established in 1903, Bank OZK conducts banking operations with over 240 offices in eight states including Arkansas, Georgia, Florida, North Carolina, Texas, New York, California and Mississippi and had $30.76 billion in total assets as of June 30, 2023. 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.
Bank OZK | ||||||||
Consolidated Balance Sheets | ||||||||
Unaudited | ||||||||
June 30, 2023 | December 31, 2022 | |||||||
(Dollars in thousands) | ||||||||
ASSETS | ||||||||
Cash and cash equivalents | $ | 1,454,789 | $ | 1,033,454 | ||||
Investment securities – available for sale (“AFS”) | 3,262,366 | 3,491,613 | ||||||
Investment securities – trading | 8,991 | 8,817 | ||||||
Federal Home Loan Bank of Dallas (“FHLB”) and other bankers’ bank stocks | 62,855 | 42,406 | ||||||
Non-purchased loans | 23,291,785 | 20,400,154 | ||||||
Purchased loans | 315,661 | 378,637 | ||||||
Allowance for loan losses | (263,188 | ) | (208,858 | ) | ||||
Net Loans | 23,344,259 | 20,569,933 | ||||||
Premises and equipment, net | 670,262 | 678,405 | ||||||
Foreclosed assets | 62,048 | 6,616 | ||||||
Accrued interest receivable | 144,842 | 125,130 | ||||||
Bank owned life insurance (“BOLI”) | 799,142 | 789,805 | ||||||
Goodwill and other intangible assets, net | 661,166 | 663,543 | ||||||
Other, net | 291,151 | 246,846 | ||||||
Total assets | $ | 30,761,870 | $ | 27,656,568 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Deposits: | ||||||||
Demand non-interest bearing | $ | 4,535,365 | $ | 4,658,451 | ||||
Savings and interest bearing transaction | 8,975,142 | 9,905,717 | ||||||
Time | 10,472,890 | 6,935,975 | ||||||
Total deposits | 23,983,397 | 21,500,143 | ||||||
Other borrowings | 1,104,478 | 606,666 | ||||||
Subordinated notes | 347,350 | 346,947 | ||||||
Subordinated debentures | 121,652 | 121,591 | ||||||
Reserve for losses on unfunded loan commitments | 163,632 | 156,419 | ||||||
Accrued interest payable and other liabilities | 230,098 | 233,864 | ||||||
Total liabilities | $ | 25,950,607 | $ | 22,965,630 | ||||
Commitments and contingencies | ||||||||
Stockholders’ equity: | ||||||||
Preferred Stock: $0.01 par value; 100,000,000 shares authorized; 14,000,000 issued and outstanding at June 30, 2023 and December 31, 2022 |
338,980 | 338,980 | ||||||
Common Stock: $0.01 par value; 300,000,000 shares authorized; 113,145,449 and 117,176,928 shares issued and outstanding at June 30, 2023 and December 31, 2022, respectively |
1,131 | 1,172 | ||||||
Additional paid-in capital | 1,602,964 | 1,753,941 | ||||||
Retained earnings | 3,026,247 | 2,773,135 | ||||||
Accumulated other comprehensive (loss) income | (159,431 | ) | (177,649 | ) | ||||
Total stockholders’ equity before noncontrolling interest | 4,809,891 | 4,689,579 | ||||||
Noncontrolling interest | 1,372 | 1,359 | ||||||
Total stockholders’ equity | 4,811,263 | 4,690,938 | ||||||
Total liabilities and stockholders’ equity | $ | 30,761,870 | $ | 27,656,568 |
Bank OZK | ||||||||||||||||
Consolidated Statements of Income | ||||||||||||||||
Unaudited | ||||||||||||||||
Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||
(Dollars in thousands, except per share amounts) | ||||||||||||||||
Interest income: | ||||||||||||||||
Non-purchased loans | $ | 472,524 | $ | 256,264 | $ | 887,420 | $ | 496,259 | ||||||||
Purchased loans | 5,322 | 8,982 | 11,840 | 17,152 | ||||||||||||
Investment securities: | ||||||||||||||||
Taxable | 9,704 | 10,367 | 19,875 | 20,978 | ||||||||||||
Tax-exempt | 9,489 | 4,020 | 18,753 | 7,006 | ||||||||||||
Deposits with banks and federal funds sold | 11,407 | 1,855 | 19,277 | 2,464 | ||||||||||||
Total interest income | 508,446 | 281,488 | 957,165 | 543,859 | ||||||||||||
Interest expense: | ||||||||||||||||
Deposits | 136,122 | 10,855 | 229,754 | 19,347 | ||||||||||||
Other borrowings | 10,591 | 1,042 | 16,013 | 2,039 | ||||||||||||
Subordinated notes | 2,603 | 2,603 | 5,177 | 5,177 | ||||||||||||
Subordinated debentures | 2,306 | 1,195 | 4,545 | 2,159 | ||||||||||||
Total interest expense | 151,622 | 15,695 | 255,489 | 28,722 | ||||||||||||
Net interest income | 356,824 | 265,793 | 701,676 | 515,137 | ||||||||||||
Provision for credit losses | 41,774 | 7,025 | 77,602 | 11,215 | ||||||||||||
Net interest income after provision for credit losses | 315,050 | 258,768 | 624,074 | 503,922 | ||||||||||||
Non-interest income: | ||||||||||||||||
Service charges on deposit accounts: | ||||||||||||||||
NSF and overdraft fees | 4,373 | 4,247 | 8,651 | 8,449 | ||||||||||||
All other service charges | 7,187 | 7,184 | 13,688 | 13,874 | ||||||||||||
Trust income | 2,113 | 1,911 | 4,146 | 4,005 | ||||||||||||
BOLI income: | ||||||||||||||||
Increase in cash surrender value | 5,069 | 4,846 | 10,043 | 9,639 | ||||||||||||
Death benefits | — | — | — | 297 | ||||||||||||
Loan service, maintenance and other fees | 4,095 | 3,603 | 8,170 | 6,621 | ||||||||||||
Gains on sales of other assets | 5,033 | 784 | 5,377 | 7,776 | ||||||||||||
Net gains on investment securities | 620 | 531 | 2,336 | 441 | ||||||||||||
Other | 3,497 | 3,214 | 7,384 | 6,694 | ||||||||||||
Total non-interest income | 31,987 | 26,320 | 59,795 | 57,796 | ||||||||||||
Non-interest expense: | ||||||||||||||||
Salaries and employee benefits | 65,219 | 54,412 | 128,468 | 109,060 | ||||||||||||
Net occupancy and equipment | 19,476 | 17,060 | 37,560 | 34,309 | ||||||||||||
Other operating expenses | 44,660 | 37,828 | 89,543 | 73,647 | ||||||||||||
Total non-interest expense | 129,355 | 109,300 | 255,571 | 217,016 | ||||||||||||
Income before taxes | 217,682 | 175,788 | 428,298 | 344,702 | ||||||||||||
Provision for income taxes | 45,717 | 39,375 | 86,420 | 75,786 | ||||||||||||
Net income | 171,965 | 136,413 | 341,878 | 268,916 | ||||||||||||
Earnings attributable to noncontrolling interest | (1 | ) | (8 | ) | (13 | ) | (3 | ) | ||||||||
Preferred stock dividends | 4,047 | 4,047 | 8,094 | 8,527 | ||||||||||||
Net income available to common stockholders | $ | 167,917 | $ | 132,358 | $ | 333,771 | $ | 260,386 | ||||||||
Basic earnings per common share | $ | 1.47 | $ | 1.10 | $ | 2.89 | $ | 2.13 | ||||||||
Diluted earnings per common share | $ | 1.47 | $ | 1.10 | $ | 2.88 | $ | 2.12 |
Bank OZK | |||||||||||||||||||||||||||
Consolidated Statements of Stockholders’ Equity | |||||||||||||||||||||||||||
Unaudited | |||||||||||||||||||||||||||
Preferred Stock | Common Stock | Additional Paid-in Capital |
Retained Earnings | Accumulated Other Comprehensive (Loss) Income | Non-Controlling Interest | Total | |||||||||||||||||||||
(Dollars in thousands, except per share amounts) | |||||||||||||||||||||||||||
Three months ended June 30, 2023: | |||||||||||||||||||||||||||
Balances – March 31, 2023 | $ | 338,980 | $ | 1,151 | $ | 1,664,569 | $ | 2,898,904 | $ | (141,677 | ) | $ | 1,371 | $ | 4,763,298 | ||||||||||||
Net income | — | — | — | 171,965 | — | — | 171,965 | ||||||||||||||||||||
Earnings attributable to noncontrolling interest | — | — | — | (1 | ) | — | 1 | — | |||||||||||||||||||
Total other comprehensive income (loss) | — | — | — | — | (17,754 | ) | — | (17,754 | ) | ||||||||||||||||||
Preferred stock dividends, $0.28906 per share | — | — | — | (4,047 | ) | — | — | (4,047 | ) | ||||||||||||||||||
Common stock dividends, $0.35 per share | — | — | — | (40,574 | ) | — | — | (40,574 | ) | ||||||||||||||||||
Issuance of 30,148 shares of common stock pursuant to stock-based compensation plans | — | — | 23 | — | — | — | 23 | ||||||||||||||||||||
Repurchase and cancellation of 1,956,101 shares of common stock under share repurchase program, including excise taxes | — | (20 | ) | (66,106 | ) | — | (66,126 | ) | |||||||||||||||||||
Stock-based compensation expense | — | — | 4,478 | — | — | — | 4,478 | ||||||||||||||||||||
Forfeitures of 8,706 shares of unvested restricted common stock | — | — | — | — | — | — | — | ||||||||||||||||||||
Balances – June 30, 2023 | $ | 338,980 | $ | 1,131 | $ | 1,602,964 | $ | 3,026,247 | $ | (159,431 | ) | $ | 1,372 | $ | 4,811,263 | ||||||||||||
Six months ended June 30, 2023: | |||||||||||||||||||||||||||
Balances – December 31, 2022 | $ | 338,980 | $ | 1,172 | $ | 1,753,941 | $ | 2,773,135 | $ | (177,649 | ) | $ | 1,359 | $ | 4,690,938 | ||||||||||||
Net income | — | — | — | 341,878 | — | — | 341,878 | ||||||||||||||||||||
Earnings attributable to noncontrolling interest | — | — | — | (13 | ) | — | 13 | — | |||||||||||||||||||
Total other comprehensive income | — | — | — | — | 18,218 | — | 18,218 | ||||||||||||||||||||
Preferred stock dividends, $0.57812 per share | — | — | — | (8,094 | ) | — | — | (8,094 | ) | ||||||||||||||||||
Common stock dividends, $0.69 per share | — | — | — | (80,659 | ) | — | — | (80,659 | ) | ||||||||||||||||||
Issuance of 503,187 shares of common stock pursuant to stock-based compensation plans | — | 5 | 541 | — | — | — | 546 | ||||||||||||||||||||
Repurchase and cancellation of 4,304,239 shares of common stock under share repurchase program, including excise taxes | — | (44 | ) | (151,421 | ) | — | — | — | (151,465 | ) | |||||||||||||||||
Repurchase and cancellation of 215,362 shares of common stock withheld for tax pursuant to stock-based compensation plans | — | (2 | ) | (8,672 | ) | — | (8,674 | ) | |||||||||||||||||||
Stock-based compensation expense | — | — | 8,575 | — | — | — | 8,575 | ||||||||||||||||||||
Forfeitures of 15,065 shares of unvested restricted common stock | — | — | — | — | — | — | — | ||||||||||||||||||||
Balances – June 30, 2023 | $ | 338,980 | $ | 1,131 | $ | 1,602,964 | $ | 3,026,247 | $ | (159,431 | ) | $ | 1,372 | $ | 4,811,263 |
Bank OZK | ||||||||||||||||||||||||||
Consolidated Statements of Stockholders’ Equity | ||||||||||||||||||||||||||
Unaudited | ||||||||||||||||||||||||||
Preferred Stock | Common Stock | Additional Paid-in Capital |
Retained Earnings | Accumulated Other Comprehensive (Loss) Income | Non-Controlling Interest | Total | ||||||||||||||||||||
(Dollars in thousands, except per share amounts) | ||||||||||||||||||||||||||
Three months ended June 30, 2022: | ||||||||||||||||||||||||||
Balances – March 31, 2022 | $ | 338,980 | $ | 1,227 | $ | 1,962,126 | $ | 2,468,652 | $ | (80,928 | ) | $ | 3,112 | $ | 4,693,169 | |||||||||||
Net income | — | — | — | 136,413 | — | — | 136,413 | |||||||||||||||||||
Earnings attributable to noncontrolling interest | — | — | — | (8 | ) | — | 8 | — | ||||||||||||||||||
Total other comprehensive loss | — | — | — | — | (33,240 | ) | — | (33,240 | ) | |||||||||||||||||
Preferred stock dividends, $0.28906 per share | — | — | — | (4,047 | ) | — | (4,047 | ) | ||||||||||||||||||
Common stock dividends, $0.31 per share | — | — | — | (37,880 | ) | — | — | (37,880 | ) | |||||||||||||||||
Issuance of 41,503 shares of common stock pursuant to stock-based compensation plans | — | — | 594 | — | — | — | 594 | |||||||||||||||||||
Repurchase and cancellation of 3,689,819 shares of common stock under share repurchase program | — | (37 | ) | (147,396 | ) | — | — | — | (147,433 | ) | ||||||||||||||||
Stock-based compensation expense | — | — | 2,326 | — | — | — | 2,326 | |||||||||||||||||||
Forfeitures of 32,858 shares of unvested restricted common stock | — | — | — | — | — | — | — | |||||||||||||||||||
Balances – June 30, 2022 | $ | 338,980 | $ | 1,190 | $ | 1,817,650 | $ | 2,563,130 | $ | (114,168 | ) | $ | 3,120 | $ | 4,609,902 | |||||||||||
Six months ended June 30, 2022: | ||||||||||||||||||||||||||
Balances – December 31, 2021 | $ | 338,980 | $ | 1,254 | $ | 2,093,702 | $ | 2,378,466 | $ | 23,841 | $ | 3,117 | $ | 4,839,360 | ||||||||||||
Net income | — | — | — | 268,916 | — | — | 268,916 | |||||||||||||||||||
Earnings attributable to noncontrolling interest | — | — | — | (3 | ) | — | 3 | — | ||||||||||||||||||
Total other comprehensive loss | — | — | — | — | (138,009 | ) | — | (138,009 | ) | |||||||||||||||||
Preferred stock dividends, $0.60906 per share | — | — | — | (8,527 | ) | — | (8,527 | ) | ||||||||||||||||||
Common stock dividends, $0.61 per share | — | — | — | (75,722 | ) | — | — | (75,722 | ) | |||||||||||||||||
Issuance of 289,929 shares of common stock pursuant to stock-based compensation plans | — | 3 | 2,077 | — | — | — | 2,080 | |||||||||||||||||||
Repurchase and cancellation of 6,572,832 shares of common stock under share repurchase program | — | (65 | ) | (278,932 | ) | — | — | — | (278,997 | ) | ||||||||||||||||
Repurchase and cancellation of 112,974 shares of common stock withheld for tax pursuant to stock-based compensation plans. | — | (1 | ) | (5,398 | ) | — | — | — | (5,399 | ) | ||||||||||||||||
Stock-based compensation expense | — | — | 6,200 | — | — | — | 6,200 | |||||||||||||||||||
Forfeitures of 51,850 shares of unvested restricted common stock | — | (1 | ) | 1 | — | — | — | — | ||||||||||||||||||
Balances – June 30, 2022 | $ | 338,980 | $ | 1,190 | $ | 1,817,650 | $ | 2,563,130 | $ | (114,168 | ) | $ | 3,120 | $ | 4,609,902 |
Bank OZK | |||||||||||
Summary of Non-Interest Expense | |||||||||||
Unaudited | |||||||||||
Three Months Ended June 30, |
Six Months Ended June 30, |
||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||
(Dollars in thousands) | |||||||||||
Salaries and employee benefits | $ | 65,219 | $ | 54,412 | $ | 128,468 | $ | 109,060 | |||
Net occupancy and equipment | 19,476 | 17,060 | 37,560 | 34,309 | |||||||
Other operating expenses: | |||||||||||
Software and data processing | 9,768 | 8,976 | 19,051 | 17,162 | |||||||
Professional and outside services | 5,445 | 5,708 | 10,550 | 10,525 | |||||||
Deposit insurance and assessments | 4,900 | 2,100 | 9,048 | 4,250 | |||||||
Advertising and public relations | 3,184 | 1,103 | 7,219 | 2,362 | |||||||
Postage and supplies | 2,431 | 1,461 | 4,144 | 3,126 | |||||||
Telecommunication services | 2,398 | 1,921 | 4,671 | 3,931 | |||||||
Travel and meals | 1,903 | 2,186 | 3,718 | 3,944 | |||||||
ATM expense | 1,659 | 1,488 | 3,798 | 2,997 | |||||||
Amortization of intangibles | 1,189 | 1,516 | 2,377 | 3,033 | |||||||
Loan collection and repossession expense | 517 | 353 | 904 | 678 | |||||||
Writedowns of foreclosed and other assets | 24 | — | 965 | 258 | |||||||
Amortization of CRA and tax credit investments | 5,566 | 4,628 | 11,980 | 9,730 | |||||||
Other | 5,676 | 6,388 | 11,118 | 11,651 | |||||||
Total non-interest expense | $ | 129,355 | $ | 109,300 | $ | 255,571 | $ | 217,016 |
Bank OZK | |||||||||||||
Summary of Total Loans Outstanding | |||||||||||||
Unaudited | |||||||||||||
June 30, 2023 | December 31, 2022 | ||||||||||||
(Dollars in thousands) | |||||||||||||
Real estate: | |||||||||||||
Residential 1-4 family | $ | 966,684 | 4.1 | % | $ | 981,567 | 4.7 | % | |||||
Non-farm/non-residential | 4,960,287 | 21.0 | 4,665,268 | 22.5 | |||||||||
Construction/land development | 9,446,030 | 40.0 | 8,215,056 | 39.5 | |||||||||
Agricultural | 243,798 | 1.0 | 239,689 | 1.2 | |||||||||
Multifamily residential | 1,988,764 | 8.4 | 1,503,398 | 7.2 | |||||||||
Total real estate | 17,605,563 | 74.5 | 15,604,978 | 75.1 | |||||||||
Commercial and industrial | 1,268,787 | 5.4 | 902,321 | 4.3 | |||||||||
Consumer | 2,825,552 | 12.0 | 2,445,851 | 11.8 | |||||||||
Other | 1,907,545 | 8.1 | 1,825,641 | 8.8 | |||||||||
Total loans | 23,607,447 | 100.0 | % | 20,778,791 | 100.0 | % | |||||||
Allowance for loan losses | (263,188 | ) | (208,858 | ) | |||||||||
Net loans | $ | 23,344,259 | $ | 20,569,933 |
Bank OZK | |||||||||||
Allowance for Credit Losses | |||||||||||
Unaudited | |||||||||||
Allowance for Loan Losses | Reserve for Losses on Unfunded Loan Commitments | Total Allowance for Credit Losses | |||||||||
(Dollars in thousands) | |||||||||||
Three months ended June 30, 2023: | |||||||||||
Balances – March 31, 2023 | $ | 222,025 | $ | 171,742 | $ | 393,767 | |||||
Net charge-offs | (8,721 | ) | — | (8,721 | ) | ||||||
Provision for credit losses | 49,884 | (8,110 | ) | 41,774 | |||||||
Balances – June 30, 2023 | $ | 263,188 | $ | 163,632 | $ | 426,820 | |||||
Six Months Ended June 30, 2023: | |||||||||||
Balances – December 31, 2022 | $ | 208,858 | $ | 156,419 | $ | 365,277 | |||||
Net charge-offs | (16,059 | ) | — | (16,059 | ) | ||||||
Provision for credit losses | 70,389 | 7,213 | 77,602 | ||||||||
Balances – June 30, 2023 | $ | 263,188 | $ | 163,632 | $ | 426,820 | |||||
Three months ended June 30, 2022: | |||||||||||
Balances – March 31, 2022 | $ | 204,213 | $ | 89,327 | $ | 293,540 | |||||
Net charge-offs | (627 | ) | — | (627 | ) | ||||||
Provision for credit losses | (12,791 | ) | 19,816 | 7,025 | |||||||
Balances – June 30, 2022 | $ | 190,795 | $ | 109,143 | $ | 299,938 | |||||
Six Months Ended June 30, 2022: | |||||||||||
Balances – December 31, 2021 | $ | 217,380 | $ | 71,609 | $ | 288,989 | |||||
Net charge-offs | (266 | ) | — | (266 | ) | ||||||
Provision for credit losses | (26,319 | ) | 37,534 | 11,215 | |||||||
Balances – June 30, 2022 | $ | 190,795 | $ | 109,143 | $ | 299,938 |
Bank OZK | ||||||||||||
Summary of Deposits – By Account Type | ||||||||||||
Unaudited | ||||||||||||
June 30, 2023 | December 31, 2022 | |||||||||||
(Dollars in thousands) | ||||||||||||
Non-interest bearing | $ | 4,535,365 | 18.9 | % | $ | 4,658,451 | 21.7 | % | ||||
Interest bearing: | ||||||||||||
Transaction (NOW) | 4,208,777 | 17.5 | 4,097,532 | 19.1 | ||||||||
Savings and money market | 4,766,365 | 19.9 | 5,808,185 | 27.0 | ||||||||
Time deposits | 10,472,890 | 43.7 | 6,935,975 | 32.2 | ||||||||
Total deposits | $ | 23,983,397 | 100.0 | % | $ | 21,500,143 | 100.0 | % |
Bank OZK | |||||||||||
Summary of Deposits – By Customer Type | |||||||||||
Unaudited | |||||||||||
June 30, 2023 | December 31, 2022 | ||||||||||
(Dollars in thousands) | |||||||||||
Non-interest bearing | $ | 4,535,365 | 18.9 | % | $ | 4,658,451 | 21.7 | % | |||
Interest bearing: | |||||||||||
Consumer and commercial: | |||||||||||
Consumer – Non-Time | 3,142,531 | 13.1 | 3,916,078 | 18.2 | |||||||
Consumer – Time | 7,498,988 | 31.3 | 4,936,061 | 23.0 | |||||||
Commercial – Non-Time | 2,333,786 | 9.7 | 2,741,007 | 12.7 | |||||||
Commercial – Time | 621,105 | 2.6 | 516,477 | 2.4 | |||||||
Public funds | 2,595,415 | 10.8 | 2,103,392 | 9.8 | |||||||
Brokered | 2,355,647 | 9.8 | 2,050,294 | 9.5 | |||||||
Reciprocal | 900,560 | 3.8 | 578,383 | 2.7 | |||||||
Total deposits | $ | 23,983,397 | 100.0 | % | $ | 21,500,143 | 100.0 | % |
Bank OZK | |||||||||||||||||||||
Selected Consolidated Financial Data | |||||||||||||||||||||
Unaudited | |||||||||||||||||||||
Three Months Ended June 30, |
Six Months Ended June 30, |
||||||||||||||||||||
2023 | 2022 | % Change |
2023 | 2022 | % Change |
||||||||||||||||
(Dollars in thousands, except per share amounts) | |||||||||||||||||||||
Income statement data: | |||||||||||||||||||||
Net interest income | $ | 356,824 | $ | 265,793 | 34.2 | % | $ | 701,676 | $ | 515,137 | 36.2 | % | |||||||||
Provision for credit losses | 41,774 | 7,025 | 494.6 | 77,602 | 11,215 | 591.9 | |||||||||||||||
Non-interest income | 31,987 | 26,320 | 21.5 | 59,795 | 57,796 | 3.5 | |||||||||||||||
Non-interest expense | 129,355 | 109,300 | 18.3 | 255,571 | 217,016 | 17.8 | |||||||||||||||
Net income | 171,965 | 136,413 | 26.1 | 341,878 | 268,916 | 27.1 | |||||||||||||||
Preferred stock dividends | 4,047 | 4,047 | — | 8,094 | 8,527 | (5.1 | ) | ||||||||||||||
Net income available to common stockholders | 167,917 | 132,358 | 26.9 | 333,771 | 260,386 | 28.2 | |||||||||||||||
Pre-tax pre-provision net revenue (1) | 259,456 | 182,813 | 41.9 | 505,900 | 355,917 | 42.1 | |||||||||||||||
Common share and per common share data: | |||||||||||||||||||||
Diluted earnings per common share | $ | 1.47 | $ | 1.10 | 33.6 | % | $ | 2.88 | $ | 2.12 | 35.8 | % | |||||||||
Basic earnings per common share | 1.47 | 1.10 | 33.6 | 2.89 | 2.13 | 35.7 | |||||||||||||||
Common stock dividends per share | 0.35 | 0.31 | 12.9 | 0.69 | 0.61 | 13.1 | |||||||||||||||
Book value per share | 39.51 | 35.87 | 10.1 | 39.51 | 35.87 | 10.1 | |||||||||||||||
Tangible book value per common share (1) | 33.67 | 30.27 | 11.2 | 33.67 | 30.27 | 11.2 | |||||||||||||||
Weighted-average diluted shares outstanding (thousands) | 114,284 | 120,827 | (5.4 | ) | 115,871 | 122,905 | (5.7 | ) | |||||||||||||
End of period shares outstanding (thousands) | 113,145 | 118,996 | (4.9 | ) | 113,145 | 118,996 | (4.9 | ) | |||||||||||||
Balance sheet data at period end: | |||||||||||||||||||||
Total assets | $ | 30,761,870 | $ | 25,919,965 | 18.7 | % | $ | 30,761,870 | $ | 25,919,965 | 18.7 | % | |||||||||
Total loans | 23,607,446 | 18,742,718 | 26.0 | 23,607,446 | 18,742,718 | 26.0 | |||||||||||||||
Non-purchased loans | 23,291,785 | 18,297,638 | 27.3 | 23,291,785 | 18,297,638 | 27.3 | |||||||||||||||
Purchased loans | 315,661 | 445,080 | (29.1 | ) | 315,661 | 445,080 | (29.1 | ) | |||||||||||||
Allowance for loan losses | 263,188 | 190,795 | 37.9 | 263,188 | 190,795 | 37.9 | |||||||||||||||
Foreclosed assets | 62,048 | 2,593 | 2292.9 | 62,048 | 2,593 | 2292.9 | |||||||||||||||
Investment securities – AFS | 3,262,366 | 3,705,807 | (12.0 | ) | 3,262,366 | 3,705,807 | (12.0 | ) | |||||||||||||
Goodwill and other intangible assets, net | 661,166 | 666,029 | (0.7 | ) | 661,166 | 666,029 | (0.7 | ) | |||||||||||||
Deposits | 23,983,397 | 19,984,187 | 20.0 | 23,983,397 | 19,984,187 | 20.0 | |||||||||||||||
Other borrowings | 1,104,478 | 505,221 | 118.6 | 1,104,478 | 505,221 | 118.6 | |||||||||||||||
Subordinated notes | 347,350 | 346,536 | 0.2 | 347,350 | 346,536 | 0.2 | |||||||||||||||
Subordinated debentures | 121,652 | 121,310 | 0.3 | 121,652 | 121,310 | 0.3 | |||||||||||||||
Unfunded balance of closed loans | 21,119,761 | 17,369,767 | 21.6 | 21,119,761 | 17,369,767 | 21.6 | |||||||||||||||
Reserve for losses on unfunded loan commitments | 163,632 | 109,143 | 49.9 | 163,632 | 109,143 | 49.9 | |||||||||||||||
Preferred stock | 338,980 | 338,980 | — | 338,980 | 338,980 | — | |||||||||||||||
Total common stockholders’ equity | 4,470,911 | 4,267,802 | 4.8 | 4,470,911 | 4,267,802 | 4.8 | |||||||||||||||
Net unrealized losses on investment securities AFS included in stockholders’ equity | (159,431 | ) | (114,168 | ) | (159,431 | ) | (114,168 | ) | |||||||||||||
Loan (including purchased loans) to deposit ratio | 98.43 | % | 93.79 | % | 98.43 | % | 93.79 | % | |||||||||||||
Selected ratios: | |||||||||||||||||||||
Return on average assets (2) | 2.27 | % | 2.02 | % | 2.34 | % | 2.00 | % | |||||||||||||
Return on average common stockholders’ equity (1) (2) | 15.14 | 12.40 | 15.19 | 12.03 | |||||||||||||||||
Return on average tangible common stockholders’ equity (1) (2) | 17.78 | 14.69 | 17.86 | 14.20 | |||||||||||||||||
Average common equity to total average assets | 15.00 | 16.32 | 15.38 | 16.60 | |||||||||||||||||
Net interest margin – FTE (2) | 5.32 | 4.52 | 5.43 | 4.38 | |||||||||||||||||
Efficiency ratio | 33.05 | 37.25 | 33.33 | 37.73 | |||||||||||||||||
Net charge-offs to average non-purchased loans (2) (3) | 0.03 | 0.03 | 0.09 | 0.05 | |||||||||||||||||
Net charge-offs to average total loans (2) | 0.15 | 0.01 | 0.15 | 0.00 | |||||||||||||||||
Nonperforming loans to total loans (4) | 0.15 | 0.16 | 0.15 | 0.16 | |||||||||||||||||
Nonperforming assets to total assets (4) | 0.32 | 0.12 | 0.32 | 0.12 | |||||||||||||||||
Allowance for loan losses to total loans (5) | 1.11 | 1.02 | 1.11 | 1.02 | |||||||||||||||||
Allowance for credit losses to total loans and unfunded loan commitments | 0.95 | 0.83 | 0.95 | 0.83 | |||||||||||||||||
Other information: | |||||||||||||||||||||
Non-accrual loans (4) | $ | 35,320 | $ | 28,171 | $ | 35,320 | $ | 28,171 | |||||||||||||
Accruing loans – 90 days past due (4) | — | — | — | — |
(1) Calculations of pre-tax pre-provision net revenue, total common stockholders’ equity, tangible book value per common share and 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.
(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 OZK | ||||||||||
Selected Consolidated Financial Data (continued) | ||||||||||
Unaudited | ||||||||||
Three Months Ended | ||||||||||
June 30, 2023 | March 31, 2023 | % Change |
||||||||
(Dollars in thousands, except per share amounts) | ||||||||||
Income statement data: | ||||||||||
Net interest income | $ | 356,824 | $ | 344,852 | 3.5 | % | ||||
Provision for credit losses | 41,774 | 35,829 | 16.6 | |||||||
Non-interest income | 31,987 | 27,809 | 15.0 | |||||||
Non-interest expense | 129,355 | 126,217 | 2.5 | |||||||
Net income | 171,965 | 169,912 | 1.2 | |||||||
Preferred stock dividends | 4,047 | 4,047 | — | |||||||
Net income available to common stockholders | 167,917 | 165,853 | 1.2 | |||||||
Pre-tax pre-provision net revenue (1) | 259,456 | 246,444 | 5.3 | |||||||
Common share and per common share data: | ||||||||||
Diluted earnings per common share | $ | 1.47 | $ | 1.41 | 4.3 | % | ||||
Basic earnings per common share | 1.47 | 1.42 | 3.5 | |||||||
Common stock dividends per share | 0.35 | 0.34 | 2.9 | |||||||
Book value per share | 39.51 | 38.43 | 2.8 | |||||||
Tangible book value per common share (1) | 33.67 | 32.68 | 3.0 | |||||||
Weighted-average diluted shares outstanding (thousands) | 114,284 | 117,405 | (2.7 | ) | ||||||
End of period shares outstanding (thousands) | 113,145 | 115,080 | (1.7 | ) | ||||||
Balance sheet data at period end: | ||||||||||
Total assets | $ | 30,761,870 | $ | 28,971,170 | 6.2 | % | ||||
Total loans | 23,607,446 | 22,062,006 | 7.0 | |||||||
Non-purchased loans | 23,291,785 | 21,700,941 | 7.3 | |||||||
Purchased loans | 315,661 | 361,065 | (12.6 | ) | ||||||
Allowance for loan losses | 263,188 | 222,025 | 18.5 | |||||||
Foreclosed assets | 62,048 | 66,227 | (6.3 | ) | ||||||
Investment securities – AFS | 3,262,366 | 3,422,031 | (4.7 | ) | ||||||
Goodwill and other intangible assets, net | 661,166 | 662,354 | (0.2 | ) | ||||||
Deposits | 23,983,397 | 22,282,983 | 7.6 | |||||||
Other borrowings | 1,104,478 | 994,079 | 11.1 | |||||||
Subordinated notes | 347,350 | 347,147 | 0.1 | |||||||
Subordinated debentures | 121,652 | 121,652 | — | |||||||
Unfunded balance of closed loans | 21,119,761 | 20,965,040 | 0.7 | |||||||
Reserve for losses on unfunded loan commitments | 163,632 | 171,742 | (4.7 | ) | ||||||
Preferred stock | 338,980 | 338,980 | — | |||||||
Total common stockholders’ equity | 4,470,911 | 4,422,947 | 1.1 | |||||||
Net unrealized losses on investment securities AFS included in stockholders’ equity | (159,431 | ) | (141,677 | ) | ||||||
Loan (including purchased loans) to deposit ratio | 98.43 | % | 99.01 | % | ||||||
Selected ratios: | ||||||||||
Return on average assets (2) | 2.27 | % | 2.41 | % | ||||||
Return on average common stockholders’ equity (1) (2) | 15.14 | 15.24 | ||||||||
Return on average tangible common stockholders’ equity (1) (2) | 17.78 | 17.94 | ||||||||
Average common equity to total average assets | 15.00 | 15.78 | ||||||||
Net interest margin – FTE (2) | 5.32 | 5.54 | ||||||||
Efficiency ratio | 33.05 | 33.63 | ||||||||
Net charge-offs to average non-purchased loans (2) (3) | 0.03 | 0.15 | ||||||||
Net charge-offs to average total loans (2) | 0.15 | 0.14 | ||||||||
Nonperforming loans to total loans (4) | 0.15 | 0.15 | ||||||||
Nonperforming assets to total assets (4) | 0.32 | 0.34 | ||||||||
Allowance for loan losses to total loans (5) | 1.11 | 1.01 | ||||||||
Allowance for credit losses to total loans and unfunded loan commitments | 0.95 | 0.92 | ||||||||
Other information: | ||||||||||
Non-accrual loans (4) | $ | 35,320 | $ | 33,371 | ||||||
Accruing loans – 90 days past due (4) | — | — |
(1) Calculations of pre-tax pre-provision net revenue, total common stockholders’ equity, tangible book value per common share and 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.
(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 OZK | |||||||||||||||||||
Supplemental Quarterly Financial Data | |||||||||||||||||||
Unaudited | |||||||||||||||||||
6/30/23 | 3/31/23 | 12/31/22 | 9/30/22 | 6/30/22 | |||||||||||||||
(Dollars in thousands) | |||||||||||||||||||
Earnings summary: | |||||||||||||||||||
Net interest income | $ | 356,824 | $ | 344,852 | $ | 332,488 | $ | 294,617 | $ | 265,793 | |||||||||
Federal tax (FTE) adjustment | 2,602 | 2,603 | 2,383 | 2,151 | 1,300 | ||||||||||||||
Net interest income (FTE) | 359,426 | 347,455 | 334,871 | 296,768 | 267,093 | ||||||||||||||
Provision for credit losses | (41,774 | ) | (35,829 | ) | (32,508 | ) | (39,771 | ) | (7,025 | ) | |||||||||
Non-interest income | 31,987 | 27,809 | 27,544 | 29,163 | 26,320 | ||||||||||||||
Non-interest expense | (129,355 | ) | (126,217 | ) | (119,013 | ) | (115,691 | ) | (109,300 | ) | |||||||||
Pre-tax income (FTE) | 220,284 | 213,218 | 210,894 | 170,469 | 177,088 | ||||||||||||||
FTE adjustment | (2,602 | ) | (2,603 | ) | (2,383 | ) | (2,151 | ) | (1,300 | ) | |||||||||
Provision for income taxes | (45,717 | ) | (40,703 | ) | (45,686 | ) | (35,969 | ) | (39,375 | ) | |||||||||
Noncontrolling interest | (1 | ) | (12 | ) | 54 | — | (8 | ) | |||||||||||
Preferred stock dividend | (4,047 | ) | (4,047 | ) | (4,047 | ) | (4,047 | ) | (4,047 | ) | |||||||||
Net income available to common stockholders | $ | 167,917 | $ | 165,853 | $ | 158,832 | $ | 128,302 | $ | 132,358 | |||||||||
Earnings per common share – diluted | $ | 1.47 | $ | 1.41 | $ | 1.34 | $ | 1.08 | $ | 1.10 | |||||||||
Pre-tax pre-provision net revenue (1) | $ | 259,456 | $ | 246,444 | $ | 241,019 | $ | 208,089 | $ | 182,813 | |||||||||
Selected balance sheet data at period end: | |||||||||||||||||||
Total assets | $ | 30,761,870 | $ | 28,971,170 | $ | 27,656,568 | $ | 26,232,119 | $ | 25,919,965 | |||||||||
Non-purchased loans | 23,291,785 | 21,700,941 | 20,400,154 | 19,103,546 | 18,297,638 | ||||||||||||||
Purchased loans | 315,661 | 361,065 | 378,637 | 410,166 | 445,080 | ||||||||||||||
Investment securities – AFS | 3,262,366 | 3,422,031 | 3,491,613 | 3,528,077 | 3,705,807 | ||||||||||||||
Deposits | 23,983,397 | 22,282,983 | 21,500,143 | 20,401,876 | 19,984,187 | ||||||||||||||
Unfunded balance of closed loans | 21,119,761 | 20,965,040 | 21,062,733 | 20,091,101 | 17,369,767 | ||||||||||||||
Allowance for credit losses: | |||||||||||||||||||
Balance at beginning of period | $ | 393,767 | $ | 365,277 | $ | 335,635 | $ | 299,938 | $ | 293,540 | |||||||||
Net charge-offs | (8,721 | ) | (7,339 | ) | (2,866 | ) | (4,074 | ) | (627 | ) | |||||||||
Provision for credit losses | 41,774 | 35,829 | 32,508 | 39,771 | 7,025 | ||||||||||||||
Balance at end of period | $ | 426,820 | $ | 393,767 | $ | 365,277 | $ | 335,635 | $ | 299,938 | |||||||||
Allowance for loan losses | $ | 263,188 | $ | 222,025 | $ | 208,858 | $ | 200,098 | $ | 190,795 | |||||||||
Reserve for losses on unfunded loan commitments | 163,632 | 171,742 | 156,419 | 135,537 | 109,143 | ||||||||||||||
Total allowance for credit losses | $ | 426,820 | $ | 393,767 | $ | 365,277 | $ | 335,635 | $ | 299,938 | |||||||||
Selected ratios: | |||||||||||||||||||
Net interest margin – FTE (2) | 5.32 | % | 5.54 | % | 5.46 | % | 5.03 | % | 4.52 | % | |||||||||
Efficiency ratio | 33.05 | 33.63 | 32.84 | 35.50 | 37.25 | ||||||||||||||
Net charge-offs to average non-purchased loans (2) (3) | 0.03 | 0.15 | 0.09 | 0.09 | 0.03 | ||||||||||||||
Net charge-offs to average total loans (2) | 0.15 | 0.14 | 0.06 | 0.09 | 0.01 | ||||||||||||||
Nonperforming loans to total loans (4) | 0.15 | 0.15 | 0.22 | 0.14 | 0.16 | ||||||||||||||
Nonperforming assets to total assets (4) | 0.32 | 0.34 | 0.19 | 0.13 | 0.12 | ||||||||||||||
Allowance for loan losses to total loans (5) | 1.11 | 1.01 | 1.01 | 1.03 | 1.02 | ||||||||||||||
Allowance for credit losses to total loans and unfunded loan commitments | 0.95 | 0.92 | 0.87 | 0.85 | 0.83 | ||||||||||||||
Loans past due 30 days or more, including past due non-accrual loans, to total loans (4) | 0.14 | 0.15 | 0.13 | 0.11 | 0.11 |
(1) Calculations of pre-tax pre-provision net revenue and the reconciliation 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 OZK | |||||||||||||||||||||||||||||||||||
Average Consolidated Balance Sheets and Net Interest Analysis – FTE | |||||||||||||||||||||||||||||||||||
Unaudited | |||||||||||||||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||||||||||||
Average Balance | Income/ Expense | Yield/Rate | Average Balance | Income/ Expense | Yield/Rate | Average Balance | Income/ Expense | Yield/Rate | Average Balance | Income/ Expense | Yield/Rate | ||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||||||
ASSETS | |||||||||||||||||||||||||||||||||||
Interest earning assets: | |||||||||||||||||||||||||||||||||||
Interest earning deposits and federal funds sold | $ | 957,439 | $ | 11,407 | 4.78 | % | $ | 1,019,374 | $ | 1,855 | 0.73 | % | $ | 849,082 | $ | 19,277 | 4.58 | % | $ | 1,188,502 | $ | 2,464 | 0.42 | % | |||||||||||
Investment securities: | |||||||||||||||||||||||||||||||||||
Taxable | 2,363,265 | 9,704 | 1.65 | 3,060,097 | 10,367 | 1.36 | 2,406,769 | 19,875 | 1.67 | 3,218,475 | 20,978 | 1.31 | |||||||||||||||||||||||
Tax-exempt – FTE | 1,040,757 | 12,011 | 4.63 | 637,235 | 5,088 | 3.20 | 1,034,317 | 23,738 | 4.63 | 604,295 | 8,868 | 2.96 | |||||||||||||||||||||||
Non-purchased loans – FTE | 22,368,771 | 472,604 | 8.47 | 18,535,726 | 256,495 | 5.55 | 21,613,844 | 887,640 | 8.28 | 18,346,228 | 496,714 | 5.46 | |||||||||||||||||||||||
Purchased loans | 346,696 | 5,322 | 6.16 | 464,655 | 8,982 | 7.75 | 358,725 | 11,840 | 6.66 | 481,941 | 17,152 | 7.18 | |||||||||||||||||||||||
Total earning assets – FTE | 27,076,928 | 511,048 | 7.57 | 23,717,087 | 282,787 | 4.78 | 26,262,737 | 962,370 | 7.39 | 23,839,441 | 546,176 | 4.62 | |||||||||||||||||||||||
Non-interest earning assets | 2,587,338 | 2,507,837 | 2,552,387 | 2,453,085 | |||||||||||||||||||||||||||||||
Total assets | $ | 29,664,266 | $ | 26,224,924 | $ | 28,815,124 | $ | 26,292,526 | |||||||||||||||||||||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|||||||||||||||||||||||||||||||||||
Interest bearing liabilities: | |||||||||||||||||||||||||||||||||||
Deposits: | |||||||||||||||||||||||||||||||||||
Savings and interest bearing transaction | $ | 9,075,132 | $ | 48,650 | 2.15 | % | $ | 9,697,128 | $ | 5,379 | 0.22 | % | $ | 9,402,496 | $ | 91,164 | 1.96 | % | $ | 9,610,145 | $ | 8,162 | 0.17 | % | |||||||||||
Time deposits | 9,650,599 | 87,472 | 3.64 | 5,404,880 | 5,476 | 0.41 | 8,612,573 | 138,590 | 3.24 | 5,581,955 | 11,185 | 0.40 | |||||||||||||||||||||||
Total interest bearing deposits | 18,725,731 | 136,122 | 2.92 | 15,102,008 | 10,855 | 0.29 | 18,015,069 | 229,754 | 2.57 | 15,192,100 | 19,347 | 0.26 | |||||||||||||||||||||||
Other borrowings | 828,644 | 10,591 | 5.13 | 670,599 | 1,042 | 0.62 | 648,870 | 16,013 | 4.98 | 713,121 | 2,039 | 0.58 | |||||||||||||||||||||||
Subordinated notes | 347,251 | 2,603 | 3.01 | 346,426 | 2,603 | 3.01 | 347,151 | 5,177 | 3.01 | 346,327 | 5,177 | 3.01 | |||||||||||||||||||||||
Subordinated debentures | 121,652 | 2,306 | 7.60 | 121,234 | 1,195 | 3.95 | 121,645 | 4,545 | 7.54 | 121,166 | 2,159 | 3.59 | |||||||||||||||||||||||
Total interest bearing liabilities | 20,023,278 | 151,622 | 3.04 | 16,240,267 | 15,695 | 0.39 | 19,132,735 | 255,489 | 2.69 | 16,372,714 | 28,722 | 0.35 | |||||||||||||||||||||||
Non-interest bearing liabilities: | |||||||||||||||||||||||||||||||||||
Non-interest bearing deposits | 4,348,639 | 4,970,380 | 4,409,684 | 4,872,646 | |||||||||||||||||||||||||||||||
Other non-interest bearing liabilities | 502,394 | 392,126 | 501,203 | 340,854 | |||||||||||||||||||||||||||||||
Total liabilities | 24,874,311 | 21,602,773 | 24,043,622 | 21,586,214 | |||||||||||||||||||||||||||||||
Total stockholders’ equity before noncontrolling interest |
4,788,584 | 4,619,033 | 4,770,135 | 4,703,196 | |||||||||||||||||||||||||||||||
Noncontrolling interest | 1,371 | 3,118 | 1,367 | 3,116 | |||||||||||||||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 29,664,266 | $ | 26,224,924 | $ | 28,815,124 | $ | 26,292,526 | |||||||||||||||||||||||||||
Net interest income – FTE | $ | 359,427 | $ | 267,092 | $ | 706,881 | $ | 517,454 | |||||||||||||||||||||||||||
Net interest margin – FTE | 5.32 | % | 4.52 | % | 5.43 | % | 4.38 | % | |||||||||||||||||||||||||||
Core spread (1) | 5.55 | % | 5.26 | % | 5.71 | % | 5.20 | % |
(1) Core spread is the difference between the yield on the Bank’s non-purchased loans-FTE and the rate on its interest bearing deposits.
Bank OZK | |||||||||||||||||||
Reconciliation of Non-GAAP Financial Measures | |||||||||||||||||||
Calculation of Average Common Stockholders’ Equity, Average Tangible Common Stockholders’ Equity and the Annualized Returns on Average Common Stockholders’ Equity and Average Tangible Common Stockholders’ Equity |
|||||||||||||||||||
Unaudited | |||||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||
June 30, | June 30, | March 31, | June 30, | June 30, | |||||||||||||||
2023 | 2022 | 2023 | 2023 | 2022 | |||||||||||||||
(Dollars in thousands) | |||||||||||||||||||
Net income available to common stockholders | $ | 167,917 | $ | 132,358 | $ | 165,853 | $ | 333,771 | $ | 260,386 | |||||||||
Average stockholders’ equity before noncontrolling interest | $ | 4,788,584 | $ | 4,619,033 | $ | 4,751,481 | $ | 4,770,135 | $ | 4,703,196 | |||||||||
Less average preferred stock | (338,980 | ) | (338,980 | ) | (338,980 | ) | (338,980 | ) | (338,980 | ) | |||||||||
Total average common stockholders’ equity | 4,449,604 | 4,280,053 | 4,412,501 | 4,431,155 | 4,364,216 | ||||||||||||||
Less average intangible assets: | |||||||||||||||||||
Goodwill | (660,789 | ) | (660,789 | ) | (660,789 | ) | (660,789 | ) | (660,789 | ) | |||||||||
Core deposit and other intangible assets, net of accumulated amortization | (999 | ) | (6,084 | ) | (2,243 | ) | (1,618 | ) | (6,824 | ) | |||||||||
Total average intangibles | (661,788 | ) | (666,873 | ) | (663,032 | ) | (662,407 | ) | (667,613 | ) | |||||||||
Average tangible common stockholders’ equity | $ | 3,787,816 | $ | 3,613,180 | $ | 3,749,469 | $ | 3,768,748 | $ | 3,696,603 | |||||||||
Return on average common stockholders’ equity(1) | 15.14 | % | 12.40 | % | 15.24 | % | 15.19 | % | 12.03 | % | |||||||||
Return on average tangible common stockholders’ equity(1) | 17.78 | % | 14.69 | % | 17.94 | % | 17.86 | % | 14.20 | % |
(1) Ratios for interim periods annualized based on actual days.
Calculation of Total Common Stockholders’ Equity, Total Tangible Common Stockholders’ Equity and Tangible Book Value per Common Share |
|||||||||||
Unaudited | |||||||||||
June 30, | December 31, | ||||||||||
2023 | 2022 | 2022 | |||||||||
(In thousands, except per share amounts) | |||||||||||
Total stockholders’ equity before noncontrolling interest | $ | 4,809,891 | $ | 4,606,782 | $ | 4,689,579 | |||||
Less preferred stock | (338,980 | ) | (338,980 | ) | (338,980 | ) | |||||
Total common stockholders’ equity | $ | 4,470,911 | $ | 4,267,802 | $ | 4,350,599 | |||||
Less intangible assets: | |||||||||||
Goodwill | (660,789 | ) | (660,789 | ) | (660,789 | ) | |||||
Core deposit and other intangible assets, net of accumulated amortization |
(377 | ) | (5,240 | ) | (2,754 | ) | |||||
Total intangibles | (661,166 | ) | (666,029 | ) | (663,543 | ) | |||||
Total tangible common stockholders’ equity | $ | 3,809,745 | $ | 3,601,773 | $ | 3,687,056 | |||||
Shares of common stock outstanding | 113,145 | 118,996 | 117,177 | ||||||||
Book value per common share | $ | 39.51 | $ | 35.87 | $ | 37.13 | |||||
Tangible book value per common share | $ | 33.67 | $ | 30.27 | $ | 31.47 |
Calculation of Total Common Stockholders’ Equity, Total Tangible Common Stockholders’ Equity and the Ratio of Total Tangible Common Stockholders’ Equity to Total Tangible Assets |
|||||||
Unaudited | |||||||
June 30, | |||||||
2023 | 2022 | ||||||
(Dollars in thousands) | |||||||
Total stockholders’ equity before noncontrolling interest | $ | 4,809,891 | $ | 4,606,782 | |||
Less preferred stock | (338,980 | ) | (338,980 | ) | |||
Total common stockholders’ equity | $ | 4,470,911 | $ | 4,267,802 | |||
Less intangible assets: | |||||||
Goodwill | (660,789 | ) | (660,789 | ) | |||
Core deposit and other intangible assets, net of accumulated amortization | (377 | ) | (5,240 | ) | |||
Total intangibles | (661,166 | ) | (666,029 | ) | |||
Total tangible common stockholders’ equity | 3,809,745 | 3,601,773 | |||||
Total assets | $ | 30,761,870 | $ | 25,919,965 | |||
Less intangible assets: | |||||||
Goodwill | $ | (660,789 | ) | $ | (660,789 | ) | |
Core deposit and other intangible assets, net of accumulated amortization | (377 | ) | (5,240 | ) | |||
Total intangibles | $ | (661,166 | ) | $ | (666,029 | ) | |
Total tangible assets | $ | 30,100,704 | $ | 25,253,936 | |||
Ratio of total common stockholders’ equity to total assets | 14.53 | % | 16.47 | % | |||
Ratio of total tangible common stockholders’ equity to total tangible assets | 12.66 | % | 14.26 | % |
Calculation of Pre-Tax Pre-Provision Net Revenue | |||||||||||||||||||||
Unaudited | |||||||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||||
June 30, | March 31, | December 31, | September 30, | June 30, | June 30, | June 30, | |||||||||||||||
2023 | 2023 | 2022 | 2022 | 2022 | 2023 | 2022 | |||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||
Net income available to common stockholders | $ | 167,917 | $ | 165,853 | $ | 158,832 | $ | 128,302 | $ | 132,358 | $ | 333,771 | $ | 260,386 | |||||||
Preferred stock dividends | 4,047 | 4,047 | 4,047 | 4,047 | 4,047 | 8,094 | 8,527 | ||||||||||||||
Earnings attributable to noncontrolling interest | 1 | 12 | (54 | ) | — | 8 | 13 | 3 | |||||||||||||
Provision for income taxes | 45,717 | 40,703 | 45,686 | 35,969 | 39,375 | 86,420 | 75,786 | ||||||||||||||
Provision for credit losses | 41,774 | 35,829 | 32,508 | 39,771 | 7,025 | 77,602 | 11,215 | ||||||||||||||
Pre-tax pre-provision net revenue | $ | 259,456 | $ | 246,444 | $ | 241,019 | $ | 208,089 | $ | 182,813 | $ | 505,900 | $ | 355,917 |
Investor Contact: | Jay Staley (501) 906-7842 | ||
Media Contact: | Michelle Rossow (501) 906-3922 |
Artificial Intelligence
LG CEO EMBARKS ON STRATEGIC U.S. VISIT TO ENHANCE AI INITIATIVES
AI as Key Driver for Future Growth and Customer Experience Innovation
SEOUL, South Korea, May 13, 2024 /PRNewswire/ — LG Electronics’ (LG) CEO, William Cho, has embarked on a strategic business trip to the tech-rich western United States, a hotspot for global tech titans and dynamic AI dialogues. Throughout his week-long visit, Cho will focus on key tasks such as attracting top-tier AI talent, communicating the company’s vision and strategy to global investors and attending the influential MS CEO Summit. These endeavors are integral to LG’s comprehensive strategy to accelerate the incorporation of AI into all its business sectors.
AI as a Crucial Catalyst for Future Growth and Customer Experience Innovation
Throughout his trip, Cho aims to secure top-notch expertise in the AI field, an area that has recently surfaced as a critical turning point in the industry. He plans to leverage this as a springboard for transforming LG’s future business portfolio and revolutionizing the customer experience.
Annually, LG introduces approximately 100 million products to the market. Given a product lifespan of seven years, it’s estimated that nearly 700 million LG products are currently in use worldwide. Furthermore, the usage data gained from customers interacting with these devices exceeds 700 billion hours. Cho anticipates this enormous pool of usage data will help accelerate LG’s AI progression and the 700 million products will function not just as customer touchpoints but also as service platforms.
“AI, Cloud, and Big Data are new opportunities for LG”
Cho commenced his itinerary by hosting a tech conference in North America on the 11th in Cupertino, California. This program is aimed at drawing in top-notch talent from abroad. Key participants included LG’s AI Lab management team and executives from LG’s various businesses including Park Hyoung-sei, president of the LG Home Entertainment Company; Eun Seok-hyun, president of LG Vehicle component Solutions Company; Dr. Kim Byoung-hoon, CTO and executive vice president; Kim Weon-bum, CHO and executive vice president; and Dr. Sokwoo Rhee, head of LG’s North America Innovation Center.
LG extended invitations to about 50 AI experts currently working in large tech firms and startups in the Bay Area, as well as doctoral researchers from renowned universities in North America. The conference focused on discussions about the company’s vision, R&D strategy and the future trajectory of AI technology development.
Cho expressed, “In the face of transformative shifts such as electrification, servitization and digitalization sweeping across diverse industries, the application of AI, cloud and big data is paving the way for novel approaches and opportunities.” He further elaborated, “These emerging opportunities represent a new potential frontier for us, given our extensive accumulation of core technologies and expertise.”
He also provided detailed insights into LG’s AI vision of ‘Affectionate Intelligence’, which was unveiled earlier this year at CES 2024. Cho emphasized that “AI should fundamentally be used to care for and empathize with customers, provide tangible benefits and improve the customer experience,” a sentiment that deeply resonated with the attendees.
Following this, he announced, “LG is transcending its status from a global leader in the home appliance and consumer electronics to transform into a ‘Smart Life Solution Company’ that expands and interconnects various customer spaces and experiences.” He added, “I envision us collaborating to reinvent dreams as we undertake bold ventures, fueled by optimism for a brighter future and a better life.”
At the event, CTO Kim Byung-hoon spoke on the subjects of ‘Paradigm Shift’ and ‘LG’s Innovation Roadmap for the Future’, and vice president Han Eun-jung of AI Lab discussed ‘Daily Life with AI’. Professors from the University of Southern California and New York University were also invited to present on generative AI and robotics technology. A panel discussion on the theme of ‘Evolution of AI’ also attracted significant interest from the attendees.
Transition from a Leading Home Appliance Brand to a Smart Life Solution Company
Cho’s second agenda includes hosting a non-deal roadshow (NDR) on May 13, where he will interact with key executives from globally influential investment firms based in San Francisco. His strategy aims to depict LG’s transformation to a comprehensive ‘Smart Life Solution Company’. This transition is anchored in broadening the company’s business portfolio, which includes accelerating B2B business in areas such as EV components, HVAC, built-in appliances’ and signage solutions. The expansion of platform-based services like webOS, and venturing into new areas for LG such as robotics and EV charging, are also integral to this transformation plan.
In particular, Cho plans to highlight how LG is proactively engaging in the development and application of AI in its business operations. He aims to stress that creating tangible customer touchpoints is more crucial than merely having superior AI to provide authentic value and experience to customers.
In this regard, LG’s customer touchpoints, secured through its 700 million devices spanning diverse spaces from homes to vehicles and commercial areas, present a significant advantage that is unmatched by other global companies. LG’s goal is to realize Affectionate Intelligence in our daily lives by leveraging extensive real-time life data and expertise orchestrating devices and services to accelerate AI development using its devices as platforms.
Securing Global AI Allies and Discovering New Business Opportunities at the MS CEO Summit
Cho is also scheduled to attend the MS CEO Summit, a private, invitation-only event taking place in Seattle, where Microsoft’s headquarters is located, for three days starting from May 14. This summit serves as a platform for CEOs and representatives of globally leading companies to discuss and exchange ideas on various topics, including the economic and business environment, as well as industry trends.
LG is diligently working to establish world-class AI capabilities, guided by a ‘3B strategy’ that focuses on Building internal capabilities or Borrowing and Buying external resources. Given LG’s extensive global customer touchpoints and its possession of a vast amount of multi-faceted data and customer insights, the opportunities for future collaborations with globally influential tech companies are expected to become increasingly diverse.
About LG Electronics, Inc.
LG Electronics is a global innovator in technology and consumer electronics with a presence in almost every country and an international workforce of more than 74,000. LG’s four companies – Home Appliance & Air Solution, Home Entertainment, Vehicle component Solutions and Business Solutions – combined for global revenue of over KRW 84 trillion in 2023. LG is a leading manufacturer of consumer and commercial products ranging from TVs, home appliances, air solutions, monitors, automotive components and solutions, and its premium LG SIGNATURE and intelligent LG ThinQ brands are familiar names world over. Visit www.LGnewsroom.com for the latest news.
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Artificial Intelligence
Elevate Your Virtual Reality Experience with KIWI design RGB Vertical Stand, Now Available on Meta’s Website
LOS ANGELES, May 11, 2024 /PRNewswire/ — Top-tier VR accessories provider KIWI design has launched its latest product, the RGB Vertical Stand. This Meta-authorized accessory, designed to deepen users’ immersion in the metaverse, is now available on the official Meta website.
“KIWI design’s commitment to pushing the boundaries of virtual reality accessories takes another leap forward with the introduction of our new products,” said Ray,the CEO of KIWI design. “We are always dedicated to bringing innovative upgrades to VR device accessories, with the goal of enriching users’ virtual reality experiences.”
The newly launched RGB Vertical Stand features a user-friendly modular design with push-in assembly, making it easy to set up and use. It is compatible with Meta Quest 3, Quest 2, and Quest Pro, ensuring widespread usability. With a magnetic USB Type-C connector, it provides an effortless way to charge and display your headset. Users can also customize their display with 16 pre-set ambient multicolor RGB light options.
With VR technology constantly evolving, users are seeking more immersive experiences. As a leading manufacturer of VR accessories, KIWI design is committed to enhancing the user experience, through unique product designs. Since its establishment in 2015, KIWI design has acquired over 100 patents and has a diverse product lineup, including head straps, facial interfaces, VR stands, charging accessories, and controller grip covers.
KIWI design has also actively participated in the Made for Meta program, which is provided by Meta to strengthen its partnerships with leading brands to deliver accessories that enhance Meta products with more choice and a richer experience for everyone. KIWI design’s participation in this program validates its high-quality design standards.
The RGB Vertical Stand for Meta Quest 3, Quest 2, and Quest Pro and another specially designed authorized charging dock for the Meta Oculus Quest 2 are now available for purchase on both KIWI design’s website and Amazon. For more information about our brand and products, please visit our website and follow KIWI design on Facebook, Instagram, X, YouTube and TikTok.
https://www.kiwidesign.com/
https://www.facebook.com/KIWIdesignOfficial
https://www.instagram.com/kiwidesignins/
Tweets by KIWIdesign_shop
https://www.youtube.com/channel/UCOzFWarIschBuBfNz01Oucw
TikTok – Make Your Day
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Artificial Intelligence
WIO Taps Gracenote to Revolutionize Television Broadcast Reporting
LOS ANGELES, May 11, 2024 /PRNewswire/ — WIO LLC, parent company of the global TV broadcast airings platform, WIOpro™, has announced a new strategic agreement with Gracenote, the global content data business unit of Nielsen, to address the longstanding challenge of accurately tracking and collecting music royalties generated by broadcast television and digital programming, With this agreement, WIO will integrate Gracenote TV program metadata and show airings into its WIOpro™ (“When’s It On – Professional”) platform enabling performance rights organizations, copyright management organizations and other entities to better monitor broadcast schedules and identify when royalties have been earned.
By integrating Gracenote historical program data into WIOpro’s new LookBack™ feature, WIO is enhancing its reporting capabilities and empowering Collection Societies, Rights Management Companies and the royalty-earning community to more easily monitor and export broadcast airings and better understand collections opportunities.
“At WIO, we are committed to empowering collection societies and copyright holders around the world with our platform tools and unprecedented access to the best and most accurate television broadcast and streaming data available,” said Shawn Pierce, Co-Founder and CEO of WIO LLC. “We have enjoyed an incredible relationship with Gracenote for 10 years. With the solidification of this agreement, we are able to deliver an unrivaled dataset to the royalty and residual community in a way that has not been offered before.” said Adam Shafron, Co-Founder and CTO of WIO LLC.
“WIO’s platform developed to solve the difficult matter of royalty tracking only becomes more powerful based on the integration of accurate, timely and comprehensive Gracenote metadata,” said Scott Monahan, Director, Strategic Partnerships, Gracenote. “We look forward to the combination of WIOpro’s technology and Gracenote’s program metadata delivering on the promise of transforming music royalty collection so that rights holders can be fairly compensated for use of their work.”
WIO and Gracenote will be at the MusicBiz 2024 conference in Nashville, TN May 13 – 16. Contact Dave Pelman, COO of WIO LLC at [email protected] for media queries or to book an appointment for a product demonstration.
About WIO:WIO is a technology company dedicated to providing broadcast television and digital programming data tailored specifically for the royalty and residual collection industry. Through its platform WIOpro (wiopro.com), users obtain access to real-time broadcast insights, reporting and curated data delivery.
About Gracenote:Gracenote is the content data business unit of Nielsen providing entertainment metadata, connected IDs and related offerings to the world’s leading creators, distributors and platforms. Gracenote enables advanced content navigation and discovery capabilities helping individuals easily connect to the TV shows, movies, music, podcasts and sports they love while delivering powerful content analytics making complex business decisions simpler.
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