Bank Ozk · NASDAQ:OZK
Bank Ozk — Bank of the Ozarks — Investor Presentation (April 2016)
36 slides from Bank Ozk's investor presentation, Apr 28, 2016
Slide 1: Bank of the Ozarks, May 2016
NASDAQ: OZRK May 2016 Exhibit 99.1
Slide 2: Forward-looking statements
This presentation and other communications by the Company include certain “forward looking statements” regarding the Company’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.
Slide 3: A Tradition of High Performance
A Tradition of High Performance
Slide 4: Net income and earnings performance
Portion of after tax net income attributed to bargain purchase gains, net of acquisition and conversion costs, of $1.1 million in 2012 and $4.3 million in 2013. Portion of after tax net income attributed to bargain purchase gains on FDIC-assisted transactions, net of acquisition and conversion costs
Slide 5: ROAE, ROATE and ROAA
ROAE & ROATE (%) *Data for all FDIC insured institutions from the FDIC Quarterly Banking Profile, last update fourth quarter 2015. Annualized when appropriate. Calculations of return on average tangible common stockholders’ equity and the reconciliations to GAAP are included in the schedule at the e
Slide 6: Excellence in Three Disciplines
Excellence in Three Disciplines Superb Net Interest Margin Favorable Asset Quality Excellent Efficiency
Slide 7: Superb Net Interest Margin
* Data for all FDIC insured institutions for the three months ended December 31, 2015 from the FDIC Quarterly Banking Profile. Favorable 1.85% Variance vs Industry at 3.13%* Superb Net Interest Margin
Slide 8: Key Drivers of Net Interest Margin
Profitable Deposit Mix (68.11% non-CD, 31.89% CD)* Favorable Loan Yields on Legacy Portfolio Outstanding Yield on our Portfolio of Purchased Loans (6.71%)** Tradition of Maintaining High Quality, Good Yielding Investment Portfolio OZRK** Financial Institutions Nationwide*** Tax-exempt (TE) 6.27% Tax
Slide 9: Net Charge-Offs Well Below Industry Average
* Bank of the Ozarks’ data excludes purchased loans and net charge-offs related to such loans. ** Data for all FDIC insured institutions from the FDIC Quarterly Banking Profile, last update fourth quarter 2015. Annualized when appropriate. From 2000 through 2015, our net charge-off ratio was 38% of
Slide 10: Excellent Efficiency Ratio
*Data for all FDIC insured institutions from the FDIC Quarterly Banking Profile, last update fourth quarter 2015. Excellent Efficiency Ratio
Slide 11: A Constant Pursuit of Lower Credit Risk & Lower Interest Rate Risk
A Constant Pursuit of Lower Credit Risk & Lower Interest Rate Risk
Slide 12: Real Estate Specialties Group (RESG)
Dan Thomas, Vice Chairman, Chief Lending Officer, RESG President Dan Thomas, CPA, JD, LLM (Taxation) RESG established in 2003 by Dan Thomas Team Members: 86 as of 4/26/2016 Priorities: Asset Quality−primary Profitability−secondary Growth−tertiary RESG Loans at March 31, 2016 69% of our funded non-pu
Slide 13: RESG Business Model Reduces Credit Risk
RESG Business Model Reduces Credit Risk Focus on strong sponsors, as evidenced by Strong liquidity Strong capital Significant expertise and experience Focus on marquee projects Focus on low leverage with substantial equity Focus on defensive loan structures providing substantial protection to the ba
Slide 14: RESG Portfolio Details
RESG Portfolio Details An Emphasis on Diversification and Low Leverage Property Type Total Commitment (Funded and Unfunded) Percentage of RESG Portfolio Loan to Cost (LTC) Loan to Value (LTV) Condos $ 2,066,293,795 18.8% 44.0% 39.5% Multi-family 1,951,503,524 17.7% 60.4% 51.2% Hospitality 1,626,605,
Slide 15: Total Real Estate Portfolio Diversification
The amount of the Company’s total real estate loans at March 31, 2016 based on the state in which the principal collateral is located is reflected in the table above. Data for individual states is separately presented when aggregate total real estate loans in that state exceed $10 million. Total Rea
Slide 16: Construction Loans with Interest Reserves
Construction Loans with Interest Reserves We Have Aggressively Lowered Loan Leverage in Recent Years to Reduce Credit Risk Assumes loans are fully advanced. 2010 2009 Loan to Value Loan to Cost 2010 2011 2012 2013 2014 2009 2011 2012 2013 2014 2015 2015 2014 2016 2016
Slide 17: Well Positioned for Volatility in Interest Rates
We are Well Positioned for Volatility in Interest Rates Rising Interest Rates will Benefit our Net Interest Income We have taken actions to protect our loan and investment securities portfolios from a possible negative interest rate macroeconomic scenario. 91% of our variable rate loans have floors
Slide 18: A Proven Track Record of Growth
A Proven Track Record of Growth: Organic Growth through De Novo Branching Acquisitions
Slide 19: Organic Growth and Acquisitions since 2010
1. March 2010 Unity National Bank GA FDIC-assisted 2. July 2010 Woodlands Bank SC, NC, GA, AL FDIC-assisted 3. September 2010 Horizon Bank FL FDIC-assisted 4. December 2010 Chestatee State Bank GA FDIC-assisted 5. January 2011 Oglethorpe Bank GA FDIC-assisted 6. April 2011 First Choice Community Ban
Slide 20: Organic Loan and Lease Growth Priority #1
1.75B 145% Growth in 2014 1.35B 51% Growth in 2014 2.55B 64% Growth in 2015 Unfunded Balances of Closed Loans Financial data ($ in billions) Non-Purchased Loans & Leases Organic Loan and Lease Growth is Always Growth Priority #1 Financial data ($ in billions) 2.84B 96% Growth in 2015 The significant
Slide 21: Multiple Engines for Growth in Earning Assets
Q1 2014 Growth Q2 2014 Growth Q3 2014 Growth Q4 2014 Growth Q1 2015 Growth Q2 2015 Growth Q3 2015 Growth Q4 2015 Growth Q1 2016 Growth Cyclical Engines Community Bank Lending $21 $55 $130 $(15) $98 $114 $156 $122 $129 Leasing 7 6 11 6 11 11 11 (1) (7) Cyclical/Counter-Cyclical Engine Real Estate Spe
Slide 22: Organic Growth in Core Checking Accounts
Organic Growth in Core Checking Accounts is Deposit Growth Priority #1 Net Growth in Number of Core Checking Accounts Excluding Accounts Acquired from Acquisitions Q1 2016 core checking account growth suggests another record year
Slide 23: Untapped Deposit Growth Potential in Existing Markets
7 States*, 93 Cities # Offices All FDIC Financial Institutions as of June 30, 2015 3,979 Bank of the Ozarks as of June 30, 2015 161 % of Deposits** Untapped Deposit Growth Potential in Existing Markets *Deposits in our New York office and deposits for all FDIC financial institutions in New York are
Slide 24: Deposit Distribution by State
# of Employees # of Offices Demand/ Non-Interest Bearing Interest Bearing NOW/ Savings/MM Time Deposits Total Deposits Arkansas 953 82 $676,944 $3,288,702 $1,224,300 $5,189,946 Texas 190 22 519,504 414,803 539,593 1,473,900 North Carolina 179 25 192,236 432,816 211,367 836,419 Florida 57 10 40,193 2
Slide 25: Pending Acquisitions Enhance Platform for Growth
Our Pending Acquisitions will Enhance Our Strong Platform for Further Growth Through a Combination of Organic Growth and Acquisitions, We Now Have 176 Offices in Nine States Potential office count: 176 + 47 + 33 + 2 = 258 Office count as of April 22, 2016. 33 Florida offices expected to be added thr
Slide 26: Well Capitalized with Multiple Sources of Liquidity
Well Capitalized with Multiple Sources of Liquidity
Slide 27: Strong Capital Position
Ratios at 12-31-15 OZRK Current Minimum Capital Required – Basel III Phase-In Minimum Capital Required – Basel III Fully Phased-In (1-1-19) Common equity tier 1 to risk-weighted assets: 10.79% 4.50% 7.00% Tier 1 capital to risk-weighted assets: 11.62% 6.00% 8.50% Total capital to risk-weighted asset
Slide 28: Abundant Sources of Secondary Liquidity
Abundant Sources of Secondary Liquidity FHLB Borrowing Availability $2,580,397,882 Unsecured Lines of Credit 170,000,000 Investments Available for Secured Lines of Credit 147,247,928 Fed Funds Available through Fed Discount Window 152,872,209 Total as of 03-31-2016 $ 3,050,518,019 * Approximate * Th
Slide 29: We have Delivered for Shareholders
We have Delivered for Shareholders «<> BANK ofthe OZARKS; INC.
Slide 30: 2015 Financial Highlights
2015 Financial Highlights: Record net income of $182.3 million Record diluted earnings per common share of $2.09 Record growth of $2.55 billion in non-purchased loans and leases Record growth of $2.84 billion in unfunded balances of closed loans Record net interest income of $382.2 million Record gr
Slide 31: Q1 2016 Financial Highlights
Q1 2016 Financial Highlights: Record Net Income of $51.7 million Record Net Interest Income of $112.5 million Record Service Charge Income Some of our Best Asset Quality Ratios as a Public Company including: Record 0.15% Ratio of Nonperforming Loans and Leases as a Percent of Total Loans and Leases
Slide 32: Building Capital for Shareholders
Building Capital for Shareholders †Calculation of the Company’s tangible book value per common share, including the reconciliation to the most directly comparable GAAP financial measures are included in the table at the end of this presentation. Management believes presentation of these non-GAAP fin
Slide 33: Solid Returns for Shareholders
Solid Returns for Shareholders Increased our cash dividend in each of the last 23 quarters Cash dividends increased every year since going public Four 2-for-1 stock splits since going public in July 1997 June 17, 2002 December 10, 2003 August 16, 2011 June 23, 2014
Slide 34: Beating the Indexes
Bank of the Ozarks S&P 400 Mid Cap Index NASDAQ Financial Index Beating the Indexes
Slide 35: Non-GAAP Reconciliation
<1> <2> ** ** * * *Represents ending balances, as determined in accordance with accounting principles generally accepted in the U.S., ending shares outstanding and tangible book value per share as of the date indicated. **Intangible assets consist of core deposit and bank charter intangible and good
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