About Bank OZK

Bank OZK provides a broad array of financial products and services. The company provides a wide range of retail and commercial banking services through more than offices in Arkansas, Georgia, Florida, North Carolina, Texas, California, New York and Mississippi. Deposit services include checking, savings, money market, time deposit and individual retirement accounts. Loan services include various types of real estate, consumer, commercial and industrial loans. The company also provides, among other products and services, treasury management services for businesses, non-profits and governmental entities, including wholesale lockbox services, remote deposit capture services, trust and wealth management services for businesses, individuals and non-profit and governmental entities (including financial planning, money management, custodial services and corporate trust services, among other services), ATMs, online and mobile banking services (including electronic bill pay and mobile deposits), telephone banking, debit cards and safe deposit boxes. Through third party providers, the company offers credit cards for consumers and businesses and processing of merchant debit and credit card transactions. Strategy The company focuses on growing its non-purchased loan portfolio while remaining committed to its conservative credit culture. Historically, a significant portion of its non-purchased loan portfolio growth has been attributable to the company's Real Estate Specialties Group (RESG), which focuses primarily on acquisition, development and construction lending of commercial real estate (CRE). The company expects to continue to pursue meaningful non-purchased loan growth, including growth within RESG. The company's indirect lending business is a national lending platform that primarily focuses on recreational vehicle (RV) and marine lending helps it achieve diversification within its loan portfolio. The company expects that production from its other lending teams such as its Community Banking division (which includes consumer finance, small business, government guaranteed, business aviation, affordable housing, middle market CRE homebuilder finance, equipment finance and capital solutions groups) and its Corporate and Business Specialties Group (CBSG), as well as its asset-based lending group, will continue to further contribute to diversification in its earning assets over time. As it continues to grow and diversify its lending activities, the company intends to employ, and enhance as appropriate, the same disciplined underwriting standards and credit risk management processes that have contributed to its consistently strong asset quality. The company focuses on generating primary deposit relationships with its personal, business and public funds clients throughout its footprint. The company intends to focus on underwriting and originating high-quality loans and expanding its business by offering an array of financial products and services. The company continues to focus on the evolving role and importance of technology in its business. Lending Activities The company offers a variety of commercial and consumer lending products to its customers, including most types of real estate loans, consumer and small business loans, indirect Recreational Vehicle (RV) and marine loans, asset-based commercial lending, equipment financing, business aviation financing, commercial and industrial loans, government guaranteed loans, agricultural loans, homebuilder loans, affordable housing loans and subscription financing, among others. Interest rates charged by the company vary with degree of risk, type, size, complexity, repricing frequency and other relevant factors associated with the loan or financing arrangement. Real Estate Loans: Real estate loans are a significant portion of the company's loan portfolio and include loans secured by residential 1-4 family, non-farm/non-residential, agricultural, construction/land development, multifamily residential properties and other land loans. Non-farm/non-residential loans include those secured by real estate mortgages on owner-occupied commercial buildings of various types, leased commercial, retail and office buildings, hospitals, nursing and other medical facilities, hotels and motels, mixed use properties and other business and industrial properties. Agricultural real estate loans include loans secured by farmland and related improvements, including some loans guaranteed by the Farm Service Agency (FSA) and the Small Business Administration (SBA). Real estate construction/land development loans include loans secured by vacant land, loans to finance land acquisition, development or construction of industrial, commercial, residential or farm buildings or additions or alterations to existing structures. Included in the company's residential 1-4 family loans are home equity lines of credit. The company's real estate loan products are generally amortized over five to thirty years, payable in monthly or other periodic installments of principal and interest, and due and payable in full (unless renewed) at a balloon maturity generally within one to seven years. A significant portion of the company's loans are structured as term loans with adjustable interest rates (adjustable daily, monthly, semi-annually, annually, or at other regular adjustment intervals), and many of such adjustable rate loans have established floor interest rates. Indirect Loans: The company's portfolio of indirect loans includes loans to individuals for the purchase of RVs and marine vessels, generated largely through relationships with dealers and correspondent lenders. These loans are generally collateralized by the purchased asset and have terms ranging up to 240 months. These loans are underwritten based on a combination of borrower credit score, documented debt service coverage, previous asset ownership, experience and borrower liquidity, among other factors. Consumer Loans and Business Purpose Loans to Individuals: The company's portfolio of consumer loans and business purpose loans to individuals includes loans to fund the purchase of automobiles, equipment (including agricultural equipment), ATVs, mobile homes and other similar purposes for consumer or business purpose needs. These loans are generally collateralized and have terms ranging up to 120 months, depending upon the nature of the collateral, size of the loan, and other relevant factors. Government Guaranteed Loans: The company's portfolio of government guaranteed loans consists mainly of SBA, FSA and U.S. Department of Agriculture guaranteed loans, including loans originated under the SBA's Paycheck Protection Program (PPP). These loans are commercial in nature and are typically for the refinance or origination of credit facilities secured by, but not limited to, commercial real estate, agricultural real estate, equipment and various other assets. Small Business Loans: The company's portfolio of small business loans includes loans to businesses with less than $1 million in annual revenues. Such loans generally include loans for the purchase (or refinance) of commercial or residential real estate, equipment (including agricultural equipment), lines of credit and various other business purposes. Commercial and Industrial Loans: The company's commercial and industrial loan portfolio consists of loans for commercial, industrial and professional purposes, including loans to fund working capital requirements (such as inventory, floor plan and receivables financing), purchases of machinery and equipment and other purposes. Also included in commercial and industrial loans are the company's subscription credit facilities and asset-backed facilities, its business aviation financing, and its equipment finance, lender finance and structured finance solutions. The company offers a variety of commercial and industrial loan and financing arrangements, including term loans, balloon loans, lines of credit, and lease structures, including some loans guaranteed by the SBA, with the purpose and collateral supporting a particular loan determining its structure. These arrangements are offered to businesses and professionals for short and medium terms. As a general practice, the company obtains as loan collateral a lien on furniture, fixtures, equipment, inventory, receivables, unfunded capital commitments or other assets. Mortgage Lending: The company offers certain residential mortgage products, including long-term fixed rate loans that are retained in its loan portfolio. Deposits The company offers an array of deposit products consisting of non-interest bearing checking accounts, interest bearing transaction accounts, business sweep accounts, savings accounts, money market accounts, time deposits, including individual retirement accounts, among others. The company also makes available, through various deposit placement networks, reciprocal deposits to its consumer, commercial and public funds deposit customers who want to make large deposit balances eligible for FDIC insurance beyond the traditional $250,000 per insured bank, per depositor. The company acts as depository for a number of state and local governments and government agencies or instrumentalities. In addition to its deposit base, the company has access to other sources of funding, including Federal Home Loan Bank of Dallas (FHLB) advances, FRB borrowings, repurchase agreements and secured and unsecured federal funds lines of credit from correspondent banks. In recent years, the company has also accessed the capital markets through subordinated debt and common and preferred stock offerings. Other Banking Services Trust and Wealth Services: The company offers a broad array of trust and wealth services from its headquarters in Little Rock, Arkansas, with additional staff in Northwest Arkansas, Texas, North Carolina, Georgia and Florida. These services include personal trusts, custodial accounts, investment management accounts, retirement accounts, corporate trust services, including trustee, paying agent and registered transfer agent services, and other incidental services. Treasury Management Services: The company offers treasury management services designed to provide a high level of customized solutions to business, non-profit and governmental customers. The company's treasury management services include automated clearing house, or ACH, services (e.g. direct deposit, direct payment and electronic cash concentration and disbursement), wire transfer, zero balance accounts, current and prior day transaction reporting, wholesale lockbox services, remote deposit capture services, automated credit line transfer, investment sweep accounts, reconciliation services, positive pay services, and merchant and commercial card, among other services. Investment Portfolio The company's investment portfolio includes obligations of state and political subdivisions; the U.S. Government agency mortgage-backed securities; other U.S. Government agency securities; corporate obligations; and U.S. Treasuries. Supervision and Regulation As an insured state bank that is not a member of the Board of Governors of the Federal Reserve System (FRB), the company is examined, supervised and regulated by the Arkansas State Bank Department (ASBD) and the Federal Deposit Insurance Corporation (FDIC), which is its primary federal regulator. The laws enforced by, and regulations and policies of, these agencies affect most aspects of the company's business, including prescribing permissible types of loans and investments, the amount of required reserves, requirements for branch offices, the permissible scope of its activities and various other requirements. The company is subject to the regulations of the states in which it does business, the enforcement and rulemaking authority of the Consumer Financial Protection Bureau (CFPB) regarding consumer protection laws and regulations, and various other regulatory authorities, as well as the information reporting requirements of the Securities Exchange Act of 1934 (the Exchange Act) and the FDIC rules relating thereto, as administered and enforced by the FDIC. The company files periodic and current reports and other materials required to be filed under the Securities Exchange Act of 1934 (Exchange Act) with the FDIC. The company's common stock is listed on the Nasdaq Global Select Market (NASDAQ) under the trading symbol OZK and its 4.625% Series A NonCumulative Perpetual Preferred Stock is listed on the NASDAQ under the trading symbol OZKAP. Accordingly, the company is also subject to the rules of the NASDAQ for listed companies. The company's deposits are insured by the FDIC's DIF to the fullest extent permissible by law, and it is subject to deposit insurance assessments to maintain the Deposit Insurance Fund (DIF). Federal statutes and regulations, including the Gramm-Leach-Bliley Act of 1999 (GLBA) and the Right to Financial Privacy Act of 1978, limit the company's ability to disclose non-public information about consumers, customers and employees to nonaffiliated third parties. Specifically, the GLBA requires the company to disclose its privacy policies and practices relating to sharing non-public information and enables retail customers to opt out of its ability to share information with unaffiliated third parties under certain circumstances. The GLBA also requires the company to implement a comprehensive information security program that includes administrative, technical and physical safeguards to ensure the security and confidentiality of customer records and information and if applicable state law is more protective of customer privacy than the GLBA, financial institutions, including the company, will be required to comply with such state law. The company is also subject to certain fair lending laws and regulations, including the Equal Credit Opportunity Act of 1974 and the Fair Housing Act of 1968, which (among other things) prohibit discrimination in credit and residential real estate transactions, including discrimination on the basis of, among other factors, race or color, national origin, gender, marital or familial status, age, handicap or disability, and religion. The company is required to have a fair lending program of sufficient depth and breadth to monitor fair lending risks and appropriately remediate identified risks. The Bank Secrecy Act (BSA) and its implementing regulations and parallel requirements of the federal banking regulators require the company to maintain a risk-based anti-money laundering (AML) program reasonably designed to prevent and detect money laundering and terrorist financing and to comply with the recordkeeping and reporting requirements of the BSA, including the requirement to report suspicious activity. The USA PATRIOT Act of 2001 (the Patriot Act) substantially broadened the scope of AML laws and regulations by imposing significant new compliance and due diligence obligations on financial institutions, creating new crimes and penalties and expanding the extra-territorial jurisdiction of the United States. Financial institutions, including banks, are required under final rules implementing Section 326 of the Patriot Act to establish procedures for collecting standard information from customers opening new accounts and verifying the identity of these new account holders within a reasonable period of time. The Patriot Act also amended Section 18(c) of the Federal Deposit Insurance Act (FDIA) (commonly referred to as the Bank Merger Act) to require federal banking regulatory authorities to consider the effectiveness of a financial institution's AML program when reviewing an application to expand operations. The company is subject to the customer due diligence rules issued by Treasury's Financial Crimes Enforcement Network (FinCEN) under the BSA, which require financial institutions to identify the beneficial owners who own or control certain legal entity customers at the time an account is opened and to update their AML compliance programs to include risk-based policies and procedures for conducting ongoing customer due diligence, including policies and procedures that are reasonably designed to identify and verify the identity of customers; identify and verify the identity of the beneficial owners of companies opening accounts; understand the nature and purpose of customer relationships to develop customer risk profiles; and conduct ongoing monitoring to identify and report suspicious transactions and, on a risk basis, to maintain and update customer information. The FDIC possesses enforcement authority over insured banks, including the company, pursuant to the FDIA, the Federal Deposit Insurance Corporation Improvement Act of 1991 (the FDICIA) and other statutes. History The company was founded in 1903. It was incorporated in 1981 as an Arkansas corporation. The company was formerly known as Bank of the Ozarks and changed its name to Bank OZK in 2018.