LITTLE ROCK, Ark., Oct. 21, 2021 (GLOBE NEWSWIRE) — Bank OZK (the “Bank”) (Nasdaq: OZK) today announced that net income for the third quarter of 2021 was $130.3 million, a 19.3% increase from $109.3 million for the third quarter of 2020. Diluted earnings per common share for the third quarter of 2021 were $1.00, a 19.0% increase from $0.84 for the third quarter of 2020.
For the nine months ended September 30, 2021, net income was $429.2 million, a 150.5% increase from $171.4 million for the first nine months of 2020. Diluted earnings per common share for the first nine months of 2021 were $3.30, a 150.0% increase from $1.32 for the first nine months of 2020.
As a result of improved economic conditions and prospects for improvement in the U.S. economy, management recorded negative provision for credit losses of $7.5 million during the third quarter and $69.9 million during the first nine months of 2021, reducing the Bank’s total allowance for credit losses (“ACL”) from $377.3 million at December 31, 2020 to $298.8 million at September 30, 2021. The Bank’s provision for credit losses was $7.2 million during the third quarter and $196.9 million during the first nine months of 2020, reflecting significant economic uncertainty at that time.
The Bank’s results for the first nine months of 2021 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, both of which were recognized during the first quarter of 2021. The Bank had no gains from branch sales and had $0.6 million of tax-exempt BOLI death benefits during the first nine months of 2020.
Pre-tax pre-provision net revenue (“PPNR”) was $163.5 million for the third quarter of 2021, a 12.3% increase from $145.7 million for the third quarter of 2020. For the nine months ended September 30, 2021, PPNR was $489.0 million, a 17.3% increase from $417.0 million for the first nine months of 2020. 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 2021 were 1.98%, 11.41% and 13.39%, respectively, compared to 1.63%, 10.48% and 12.52%, respectively, for the third quarter of 2020. The Bank’s annualized returns on average assets, average common stockholder’s […]