Bank Ozk · NASDAQ:OZK
Bank Ozk — Bank of the Ozarks — Investor Presentation (May 2017)
37 slides from Bank Ozk's investor presentation, May 5, 2017
Slide 1: Bank of the Ozarks, Inc. May 2017
Nasdaq: Ozrk | May 2017 Exhibit 99.1
Slide 2: Forward-Looking Information
Forward-Looking Information 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 Lit
Slide 3: #1 Bank in the U.S. - Leading 7 Years Running
1 # BANK IN THE U.S. 2011 Top Performing Bank - ABA Banking Journal Assets over $3 Billion 2012 Top Performing Bank - ABA Banking Journal Assets $1 Billion - $10 Billion 2012 Top Performing Regional Bank - S&P Global Market Intelligence 2013 Top Performing Bank - Bank Director Magazine Assets $1 Bil
Slide 4: OZRK Ranked #1 Among Largest US Banks in 4Q16
OZRK Ranked #1 Among 100 Largest US Banks in 4Q16 Bank of the Ozarks Outpunched Its Weight Class Once Again RANK Total Assets $18.9 Billion #60 Net Income $87.8 Million #32 Superior Performance Throughout a Number of Key Metrics Bank of the Ozarks is #1 Among the 100 Largest US Banks Top 10 Performe
Slide 5: Consistent Profitability and Solid Earnings Growth
Consistent Profitability and Solid Earnings Growth Net Income ($ in Millions) Record net income in 17 of 20 years as a public company. 38 years under current leadership with deep and talented executive management team George Gleason – Chairman & CEO – 38 Years Dan Thomas – Vice Chairman & Chief Lend
Slide 6: ROAE, ROATE and ROAA
ROAE & ROATE (%) *Data for all FDIC insured institutions from the FDIC Quarterly Banking Profile, last update fourth 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 e
Slide 7: Excellence in Three Disciplines
Excellence in Three Disciplines Superb Net Interest Margin Favorable Asset Quality Excellent Efficiency
Slide 8: Superb Net Interest Margin: Top Decile of Industry
*Data from S&P Global Market Intelligence. **Data for all FDIC insured institutions from the FDIC Quarterly Banking Profile, last update fourth quarter 2016. Favorable 1.86% Variance vs Industry at 3.16%** Superb Net Interest Margin: Top Decile of Industry for 7 Consecutive Years* Bank of the Ozarks
Slide 9: Favorable Loan Yields on Legacy Portfolio
Favorable Loan Yields on Legacy Portfolio (Non-purchased Loans) Outstanding Yield on our Portfolio of Purchased Loans (6.41%)* Favorable 0.81% Variance vs Industry in 2016 Key Drivers of Net Interest Margin Tradition of Maintaining High Quality, Good Yielding Investment Portfolio * Data for the fisc
Slide 10: Fed Funds Rate Increases Improving Core Spread
Recent Increases in the Fed Funds Target Rate Have Recently Contributed to an Improving “Core Spread” Company considers its “core spread” to be its yield on non-purchased loans less cost of interest bearing deposits. Bank of the Ozarks Analysis of Annualized Yield and Cost 1Q07 2Q07 3Q07 4Q07 1Q08 2
Slide 11: Asset Quality 65% 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 fourth quarter 2016. Annualized when appropriate. Asset Quality 65% Better Than Industry Average Since going p
Slide 12: Excellent Efficiency: Top Decile of Industry
*Data from S&P Global Market Intelligence. **Data for all FDIC insured institutions from the FDIC Quarterly Banking Profile, last update fourth quarter 2016. Excellent Efficiency: Top Decile of Industry for 15 Consecutive Years* Efficiency Ratio (%) Favorable trend in efficiency Long term goal for f
Slide 13: Extremely Conservative, Risk Averse Culture
Extremely Conservative, Risk Averse Culture A Constant Pursuit of Lower Credit Risk & Lower Interest Rate Risk
Slide 14: 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: 100 as of 3/31/2017 Priorities: Asset Quality−primary Profitability−secondary Growth−tertiary RESG Loans at March 31, 2017 70% of our funded non-p
Slide 15: RESG Business Model Reduces Credit Risk
We are always the sole senior secured lender giving us the lowest risk position in the capital stack With RESG’s averages of 48.7% LTC and 41.8% LTV, our portfolio may be the most conservative CRE portfolio in the country RESG Business Model Reduces Credit Risk It starts with a focus on four factors
Slide 16: RESG Emphasizes Excellence Throughout Life of Loan
Thorough underwriting including detailed modeling and testing for economic stress, interest rate stress, exit refinancing stress and cap rate stress RESG Business Model Emphasizes Industry-Leading Excellence throughout the Life of the Loan Rigorous economic analysis including supply and demand metri
Slide 17: RESG Portfolio Details by Product Type
Weighted average LTV of RESG’s portfolio is a very conservative 41.8% Low Leverage and Significant RESG Portfolio Diversification by Product Type Reduce Risk RESG Portfolio Details As of March 31, 2017 *Data as of March 31, 2017. No property type accounts for more than 24.2% of RESG’s portfolio Weig
Slide 18: Geographic Diversification of Real Estate Loan Portfolio
The amount of the Company’s total real estate loans at March 31, 2017 based on the location of the principal collateral is reflected in the table above. Data for individual locations is separately presented when aggregate total real estate loans in that location exceed $10 million. Geographic Divers
Slide 19: Rising Interest Rates Should Increase Net Interest Income
Shift in Interest Rates (in bps) % Increase in Projected Baseline Net Interest Income** +100 3.5% +200 7.2% +300 10.9% +400 14.6% +500 18.2% *S&P Global Market Intelligence reporting for 2016. **Earnings simulation model’s projected impact of a change in interest rates on the projected baseline net
Slide 20: A Proven Track Record of Growth
A Proven Track Record of Growth: Organic Growth + Acquisitions Organic Growth is the #1 Growth Priority Organic Growth through Existing Offices – Substantial Capacity Exists Organic Growth through De Novo Branching
Slide 21: De Novo Branching and Acquisitions
Organic Growth through De Novo Branching A Potent Combination of Growth + Acquisitions 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.
Slide 22: Organic Loan and Lease Growth is Priority #1
This significant growth reflects: (i) growth in our customer base and the share of business we are getting from many customers, (ii) the fact that decreases in the bank’s loan to cost ratio on projects results in several months later funding on most projects and (iii) the fact that the bank’s growth
Slide 23: 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 Deposit Growth Priority #1 * * Note: Growth in core checking accounts not annualized
Slide 24: Untapped Deposit Growth Potential in Existing Markets
Untapped Deposit Growth Potential in Existing Markets (Branch count includes deposit-gathering branches only as of June 30, 2016*) *Data for all FDIC Insured Institutions from the FDIC Annual Market Share Report, last updated June 30, 2016. Data for Bank of the Ozarks as of June 30, 2016, proforma t
Slide 25: Offices in Nine States
We Now Have 250 Offices in Nine States (Office count as of April 11, 2017; includes 242 deposit-gathering branches and 8 loan production offices.)
Slide 26: Expanding Our Extensive Branch Network
Expanding Our Extensive Branch Network Growth in Legacy Markets Selected Expansion with CRA focus Expanding deposit gathering capabilities in New York office with strategic staff additions Relocating offices from leased to owned branches in 2Q 2017 Miami Beach, FL Harrisburg, NC 1 office in McKinney
Slide 27: Well Capitalized with Ample Sources of Liquidity
Well Capitalized with Ample Sources of Liquidity
Slide 28: Strong Capital Position
Ratios at 3-31-17 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: 9.94% 5.75% 7.00% Tier 1 capital to risk-weighted assets: 9.94% 7.25% 8.50% Total capital to risk-weighted assets: 11.89% 9.
Slide 29: Abundant Sources of Secondary Liquidity
Abundant Sources of Secondary Liquidity FHLB Borrowing Availability $4,628,408,550 Unsecured Lines of Credit 230,000,000 Investments Available for Secured Lines of Credit 738,070,503 Fed Funds Available through Fed Discount Window 154,804,941 Total as of 3-31-2017 $ 5,751,283,994* * Approximate *
Slide 30: We have Delivered for Shareholders
We have Delivered for Shareholders
Slide 31: 1st Quarter 2017 Financial Highlights
1st Quarter 2017 Financial Highlights: Record Quarterly Net Income of $89.2 million Some of our Best Asset Quality Ratios as a Public Company including: 0.11% Ratio of Nonperforming Loans and Leases as a Percent of Total Loans and Leases at year end Record 0.16% Ratio of Loans and Leases Past Due 30
Slide 32: Building Capital and Delivering Returns for Shareholders
Building Capital and Delivering Returns 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 presentatio
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 Reconciliations
Non-GAAP Reconciliations
Slide 35: Calculation of Tangible Book Value Per Common Share
*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, bank charter and intellectual property intangibles an
Slide 36: Non-GAAP Reconciliation
Non-GAAP Reconciliation (1) (1) (1) (1) Ratios for interim period annualized based on actual days.
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