Investor Presentaiton
Well-Positioned Investment Securities Portfolio
• We have a well-
positioned investment
securities portfolio.
We have no held-
to-maturity
("HTM") securities
Our securities
portfolio has a
short effective
duration
Period-End
Securities Balance
($
millions)
$5,000
$4,500
$4,000
$3,500
$3,000
$2,500
$2,000
5.00%
$584
$647
$556
$808
$941
$1,006
$1,052
$1,024
$1,024
3.00%
4.00%
Total Tax Equivalent Yield
2.66%
2.559
2.56%
2.00%
2.36%
$1,500
$1,000
2.06%
1.68%
1.48%
1.00%
1.31%
1.25%
$500
$3,199
$3,348
$3,172
$2,902
$2,589
$2,494
$2,375
$2,247
$2,130
S-
0.00%
3021
4021
1022
2022
3022
4022
1Q23
2023
3Q23
Effective Duration*
2.05
2.23
2.64
3.16
3.59
3.63
3.64
3.62
3.79
Convexity*
-0.42
-0.63
-0.09
-0.02
0.08
0.05
0.04
0.04
0.12
Securities are a low
percentage of total
assets
Taxable
Tax-exempt
* Effective duration and convexity data as of the end of each respective quarter.
Total Tax Equivalent Yield
• At September 30, 2023, our investment securities portfolio was $3.15 billion, a decrease of $0.38 billion, or 10.6%,
from September 30, 2022 and $0.12 billion, or 3.3% not annualized, as compared to June 30, 2023.
.
Our investment securities portfolio contains a number of short-term securities providing us cash flow to reinvest at
current interest rates or otherwise redeploy. Principal cash flow from maturities and other principal repayments in
the fourth quarter of 2023 is expected to be approximately $0.14 billion, or about 4.3% of the portfolio. Cumulative
principal cash flow for the next four quarters through September 30, 2024, is expected to be approximately $0.56
billion, or about 17.3% of the portfolio.
• In the quarter just ended, our investment portfolio yield on a fully taxable equivalent basis was 2.66%, an increase
of 60 bps from the third quarter of 2022 and 10 bps from the second quarter of 2023.
* Effective duration and convexity data as of the end of each respective quarter.
26
Bank OZKView entire presentation