Investor Presentaiton
Provision and ACL
Our provision for credit losses was $44.0 million and $121.6 million, respectively, for the third quarter and
first nine months of 2023, while our net charge-offs were $9.4 million and $25.4 million, respectively, for
the third quarter and first nine months of 2023. As of September 30, 2023, our total ACL was $461.5 million,
or 1.00% of total outstanding loans and unfunded loan commitments. This included our allowance for loan
losses ("ALL"), which was $303.4 million, or 1.20% of total outstanding loans, and our reserve for losses on
our unfunded loan commitments, which was $158.1 million, or 0.77% of unfunded loan commitments.
9M23 ACL Activity
($ millions)
3Q23 ACL Activity
($ millions)
Allowance for Loan Losses ("ALL")
Reserve for losses on unfunded loan commitments ("ULC")
$50
ACL = $462
$158
($6)
($9)
$304
$500
ACL = $427
$400
$164
$300
$200
$263
$100
ACL at 6/30/23
3Q23 Provision
3Q23 NCOs
ACL at 9/30/23
Related to ALL
Related to
Reserve on ULC
3Q23 Provision
$500
$120
$2
ACL =
$462
$400
ACL = $365
($25)
$158
$300
$156
$200
$304
$100
$209
Scenario Forecast Overview
The calculations of our provision for
credit losses for the third quarter of
2023 and our total ACL at
September 30, 2023 were based on
a number of key estimates,
assumptions and economic
forecasts.
We utilized recent economic
forecasts provided by Moody's,
including their updates released in
September 2023.
In our selection of macroeconomic
scenarios, we have more heavily
weighted the collective downside
scenarios, specifically the Moody's
S4 (Alternative Adverse Downside)
and S6 (Stagflation) scenarios, than
the Moody's Baseline scenario.
ACL at 12/31/22
9M23 Provision
Related to ALL
9M23 Provision
Related to
Reserve on ULC
9M23NCOs
ACL at 9/30/23
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