Bank Ozk · NASDAQ:OZK
Bank Ozk — Bank of the Ozarks — Investor Presentation (August 2016)
35 slides from Bank Ozk's investor presentation, Aug 9, 2016
Slide 1: Bank of the Ozarks, Inc. August 2016
Nasdaq: OZRK | August 2016 0 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 Top Performing Bank ABA Banking Journal Assets over $3 Billion Top Performing Bank ABA Banking Journal Assets $1 Billion - $10 Billion Top Performing Regional Bank SNL Financial Top Performing Bank Bank Director Magazine Assets $1 Billion - $5 Billion Community Banker
Slide 4: Consistent Profitability and Solid Earnings Growth
Consistent Profitability and Solid Earnings Growth Record net income in 16 of 19 years as a public company. 37 years under current leadership. 37 consecutive years (for company and its predecessor institution) of positive net income; no loss years. Net Income ($ in Millions) Red bars denote record a
Slide 5: ROAE, ROATE and ROAA
ROAE & ROATE (%) *Data for all FDIC insured institutions from the FDIC Quarterly Banking Profile, last update first quarter 2016. Annualized when appropriate. Calculations of return on average tangible common stockholders’ equity and the reconciliations to GAAP are included in the schedule at the en
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 from S&P Global Market Intelligence. **Data for all FDIC insured institutions from the FDIC Quarterly Banking Profile, last update first quarter 2016. Favorable 1.82% Variance vs Industry at 3.10%** Superb Net Interest Margin: Top Decile of Industry for 6 Consecutive Years* Bank of the Ozarks,
Slide 8: Favorable Loan Yields on Legacy Portfolio
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) 5.87% Taxable 3.40% Total (TE) 4.82% 2.41% 2012 2013 2014 2015
Slide 9: Asset Quality 63% Better Than 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 first quarter 2016. Annualized when appropriate. Asset Quality 63% Better Than Industry Average Since going pu
Slide 10: Excellent Efficiency
*Data from S&P Global Market Intelligence. **Data for all FDIC insured institutions from the FDIC Quarterly Banking Profile, last update first quarter 2016. Excellent Efficiency: Top Decile of Industry for 14 Consecutive Years* Efficiency Ratio (%) Favorable trend in efficiency ratio in recent years
Slide 11: Extremely Conservative, Risk Adverse Culture
Extremely Conservative, Risk Adverse Culture 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: 94 as of 6/27/2016 Priorities: Asset Quality−primary Profitability−secondary Growth−tertiary RESG Loans at June 30, 2016 69% of our funded non-pur
Slide 13: RESG Business Model Reduces Credit Risk
RESG Business Model Reduces Credit Risk – It starts with the right focus Strong and capable sponsors, preferred equity providers and mezzanine debt providers, as evidenced by Strong liquidity Strong capital Significant expertise and experience Marquee projects Low leverage with substantial equity an
Slide 14: RESG Business Model Emphasizes Excellence Throughout Life of Loan
RESG Business Model Emphasizes Industry-Leading Excellence throughout the Life of the Loan Thorough underwriting including detailed modeling and stress testing for economic stress, interest rate stress, exit refinancing stress and cap rate stress. Economic analysis including supply and demand metric
Slide 15: RESG Portfolio Details
Weighted average LTV of RESG’s portfolio is a very conservative 42.3% Property Type Total Commitment (Funded and Unfunded) Percentage of RESG Portfolio Loan to Cost (LTC) Loan to Value (LTV) Condos $ 2,531,318,872 20.5% 44.6% 39.9% Multi-family 2,297,131,266 18.6% 59.7% 50.2% Office / MOB 2,121,975,
Slide 16: Diversification by Geography and Product Type
The amount of the Company’s total real estate loans at June 30, 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 $10 million. Significan
Slide 17: Aggressively Lowered Loan Leverage in Recent Years
Construction Loans with Interest Reserves We Have Aggressively Lowered Loan Leverage in Recent Years to Reduce Credit Risk *Assumes loans are fully advanced. 2010 2009 Loan to Value* (%) Loan to Cost* (%) 2010 2011 2012 2013 2014 2009 2011 2012 2013 2014 2015 2015 2014 2016 2016
Slide 18: Rising Interest Rates will Benefit Net Interest Income
Shift in Interest Rates (in bps) % Increase in Projected Baseline Net Interest Income* +100 2.8% +200 5.9% +300 9.1% +400 12.4% +500 15.6% *S&P Global Market Intelligence reporting for year 2015. **Earnings simulation model’s projected impact of a change in interest rates on the projected baseline n
Slide 19: A Proven Track Record of Growth
A Proven Track Record of Growth: Organic Growth through Existing Offices – Substantial Capacity Exists Organic Growth through De Novo Branching Acquisitions are “icing on the cake”
Slide 20: Acquisition History and Organic Growth
1. March 2010 Unity National Bank GA FDIC-assisted 2. July 2010 Woodlands Bank SC, NC, GA, AL FDIC-assisted 3. September 2010 Horizon Bank FL FDIC-assisted 4. December 2010 Chestatee State Bank GA FDIC-assisted 5. January 2011 Oglethorpe Bank GA FDIC-assisted 6. April 2011 First Choice Community Ban
Slide 21: Organic Loan and Lease Growth is Priority #1
1.75B 145% Growth in 2014 1.35B 51% Growth in 2014 2.55B 64% Growth in 2015 Unfunded Balances of Closed Loans Financial data ($ 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 1.68B 26% Growt
Slide 22: Multiple Engines for Growth
By 2018 we want to achieve approximately 57% of our growth in earning assets in CRE and 43% from non-CRE. With the increased capabilities we have developed organically and through acquisitions, we expect the non-CRE components of our earning assets to grow even faster. We expect to continue to grow
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: Offices in Nine States
We Now Have 256 Offices in Nine States A Potent Combination of Organic Growth and Acquisitions * Office count as of July 21, 2016. One planned de novo branch in Springdale, Arkansas for 2016.
Slide 25: Organic Growth in Core Checking Accounts
Organic Growth in Core Checking Accounts Net Growth in Number of Core Checking Accounts Excluding Accounts Acquired from Acquisitions 6M 2016 core checking account growth suggests another record year Deposit Growth Priority #1
Slide 26: Well Capitalized with Ample Sources of Liquidity
Well Capitalized with Ample Sources of Liquidity
Slide 27: Strong Capital Position
Ratios at 6-30-16 OZRK Current Minimum Capital Required – Basel III Minimum Capital Required – Basel III Fully Phased-In (1-1-19) Common equity tier 1 to risk-weighted assets: 9.70% 5.125% 7.00% Tier 1 capital to risk-weighted assets: 10.45% 6.625% 8.50% Total capital to risk-weighted assets: 12.48%
Slide 28: Abundant Sources of Secondary Liquidity
Abundant Sources of Secondary Liquidity FHLB Borrowing Availability $3,012,835,759 Unsecured Lines of Credit 170,000,000 Investments Available for Secured Lines of Credit 211,147,625 Fed Funds Available through Fed Discount Window 152,359,096 Total as of 6-30-2016 $ 3,546,342,480 * Approximate * The
Slide 29: We have Delivered for Shareholders
We have Delivered for Shareholders <& BANK of the OZARKS; INC.
Slide 30: YTD 2016 Financial Highlights
YTD 2016 Financial Highlights: (as of 6-30-16) Net Income of $106.2 million Net Interest Income of $231.6 million Some of our Best Asset Quality Ratios as a Public Company including: Record 0.09% Ratio of Nonperforming Loans and Leases as a Percent of Total Loans and Leases Record 0.22% Ratio of Loa
Slide 31: 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 32: Solid Returns for Shareholders
Solid Returns for Shareholders Increased our cash dividend in each of the last 24 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 33: Beating the Indexes
Bank of the Ozarks S&P 400 Mid Cap Index NASDAQ Financial Index Beating the Indexes
Slide 34: 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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