How did OZK's Q4 earnings surprise impact its annual performance?

**Bank OZK's Q4 earnings surprise had a positive impact on its annual performance**, as evidenced by several key metrics that contributed to the bank's robust annual financial results:

1. **Net Income and Revenue Growth**: The bank's net income available to common stockholders for the third quarter of 2024 was $177.1 million, an eighth consecutive quarterly record and a 4.4% increase from $169.7 million for the third quarter of 2023. For the first nine months of 2024, net income available to common stockholders was $522.1 million, a 3.7% increase from $503.5 million for the first nine months of 2023. This consistent growth in net income reflects the bank's strong operational performance and profitability.
2. **Earnings Per Share (EPS) Increase**: The diluted earnings per common share for the third quarter of 2024 were $1.55, an eighth consecutive quarterly record and a 4.0% increase from $1.49 for the third quarter of 2023. For the first nine months of 2024, diluted earnings per common share were $4.58, a 4.8% increase from $4.37 for the first nine months of 2023. This increase in EPS indicates that the bank's earnings are growing at a healthy rate, which is a positive signal for investors.
3. **Pre-Tax Pre-Provision Net Revenue (PPNR) Record**: The bank reported a record pre-tax pre-provision net revenue (PPNR) of $282.6 million for the third quarter of 2024, a 7.0% increase from $264.0 million for the third quarter of 2023. For the first nine months of 2024, PPNR was $834.6 million, an 8.4% increase from $769.9 million for the first nine months of 2023. This increase in PPNR suggests that the bank is generating more revenue from its core banking activities, which is a positive indicator of its financial health.
4. **Asset Quality and Provision for Credit Losses**: The bank's provision for credit losses was $46.4 million for the third quarter of 2024 compared to $44.0 million for the third quarter of 2023. For the first nine months of 2024, provision for credit losses was $138.4 million compared to $121.6 million for the first nine months of 2023. Despite this increase, the bank's net charge-offs were only $26.0 million and $9.4 million, respectively, for those quarters. This indicates that the bank's asset quality is stable, and its provision for credit losses is adequate to cover potential losses.

In conclusion, Bank OZK's Q4 earnings surprise had a significant positive impact on its annual performance, as reflected in the bank's strong growth in net income, EPS, and PPNR, along with a stable asset quality and adequate provision for credit losses. These factors combined to contribute to the bank's robust annual financial results.