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1. Company Snapshot

1.a. Company Description

Bank OZK provides various retail and commercial banking services.It accepts various deposit products, including non-interest-bearing checking, interest bearing transaction, business sweep, savings, money market, individual retirement, and other accounts, as well as time deposits.The company also offers real estate, consumer and business purpose, indirect recreational vehicle and marine, commercial and industrial, government guaranteed, agricultural, small business, homebuilder, and affordable housing loans; business aviation and subscription financing services; and mortgage and other lending products.


In addition, it provides trust and wealth services, such as personal, custodial, investment management, and retirement accounts, as well as corporate trust services comprising trustee, paying and registered transfer agent, and other incidental services.Further, the company offers treasury management services comprising automated clearing house, wire transfer, transaction reporting, wholesale lockbox, remote deposit capture, automated credit line transfer, reconciliation, positive pay, and merchant and commercial card services, as well as zero balance and investment sweep accounts.Additionally, it provides ATMs; telephone, online, and mobile banking services; debit and credit cards; safe deposit boxes; and other products and services, as well as processes merchant debit and credit card transactions.


As of December 31, 2021, it operated approximately 240 offices in Arkansas, Georgia, Florida, North Carolina, Texas, Carolina, California, New York, and Mississippi.The company was formerly known as Bank of the Ozarks and changed its name to Bank OZK in July 2018.Bank OZK was founded in 1903 and is headquartered in Little Rock, Arkansas.

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1.b. Last Insights on OZK

Bank OZK's recent performance was negatively impacted by its Q3 earnings missing estimates due to rising costs and provisions, despite a 2.6% year-over-year increase in earnings. The company's quarterly earnings of $1.59 per share fell short of the Zacks Consensus Estimate of $1.67 per share. While net income available to common stockholders reached a record $180.5 million, a 1.9% increase from the previous year, the bank's commercial real estate loan repayments surged, reducing CRE exposure.

1.c. Company Highlights

2. Bank OZK's Q3 2025 Earnings: A Closer Look

Bank OZK reported revenues that were slightly ahead of expectations, with a modest growth rate. The bank's EPS came in at $1.59, falling short of analyst estimates of $1.67. The net interest margin is expected to be compressed in the coming quarters following Fed cuts, but the bank anticipates deriving meaningful benefits as the floors in variable rate loans are reached. Analysts estimate revenue growth at 1.9% for next year.

Publication Date: Oct -25

📋 Highlights
  • Credit Risk Management:: 3 loans migrated to substandard, with $XX million in charge-offs and reserves; largest foreclosed asset sold at book value, and 2 other OREO assets under contract.
  • Portfolio Performance:: Combined special mention, substandard, and foreclosed assets decreased modestly; sponsor support drove $70M in reserve deposits, $13.5M in fees, and $80M in unscheduled paydowns.
  • 2027 Growth Outlook:: Mid-single-digit loan growth in 2026, accelerating in 2027 via CIB (Commercial & Industrial) and RESG (Real Estate Specialized Group) balance shift to 40-40 split.
  • CIB Strategic Expansion:: Record origination growth with 20+ new relationships; focus on high-utilization sectors (natural resources, CBSF, ABLG) and selective lending with sub-15% pull-through rate.

Asset Quality and Credit Performance

The bank's asset quality remained stable, with combined special mention, substandard, and foreclosed assets decreasing modestly during the quarter. The bank had three loans migrate to substandard, with one having a significant charge-off and another with a sizable reserve. George Gleason noted that the overall level of credits was unchanged, attributing this to the company's effective loan servicing and high-quality sponsors.

Loan Growth and Diversification

The bank is optimistic about its growth prospects, with mid-single-digit loan growth expected in 2026 and more in 2027. The Corporate and Industrial Banking (CIB) group is expected to drive growth, with a more balanced and diversified portfolio anticipated. The bank is rebalancing its legacy books to optimize utilization and deployment of capital, shedding legacy borrowers with low utilization rates and focusing on new business with higher utilization rates.

Valuation and Dividend Yield

Bank OZK's Price-to-Tangible Book Value (P/TBV) can be derived from the given 'P/B Ratio' at 0.87, indicating the bank is trading slightly below its book value. The Dividend Yield stands at 3.8%, which is attractive for income-seeking investors. With a 'P/E Ratio' of 7.36, the bank's valuation appears reasonable, considering its growth prospects and return on equity (ROE) of 12.26%. As the bank continues to grow and improve its returns, investors may want to keep a close eye on its valuation metrics.

Outlook and Expectations

As the bank migrates towards a 40-40 percentage split between CIB and RESG, it is expected to reduce the unfunded book and unlock more potential capital for share repurchases. The bank expects to achieve record net interest income and EPS next year, with significant operating leverage and EPS growth in 2027. With a continued focus on high credit quality names and a diversified portfolio, Bank OZK is poised for long-term success.

3. NewsRoom

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17 dividend-stock bargains from a value manager with a stellar track record

Dec -02

Source: marketwatch.com

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Cetera Investment Advisers Sells 1,861 Shares of Bank OZK $OZK

Dec -01

Source: defenseworld.net

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Ballast Asset Management LP Purchases Shares of 51,620 Bank OZK $OZK

Dec -01

Source: defenseworld.net

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Bank OZK: Held Back By Familiar Concerns

Nov -28

Source: seekingalpha.com

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New Strong Sell Stocks for Nov. 26

Nov -26

Source: zacks.com

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Ameritas Investment Partners Inc. Purchases 2,690 Shares of Bank OZK $OZK

Nov -25

Source: defenseworld.net

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New Strong Sell Stocks for Nov. 24

Nov -24

Source: zacks.com

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AXQ Capital LP Invests $883,000 in Bank OZK $OZK

Nov -22

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (10.00%)

6. Segments

Retail and Commercial Banking

Expected Growth: 10%

Bank OZK's 10% growth in Retail and Commercial Banking is driven by strategic expansion into high-growth markets, increased adoption of digital banking channels, and a strong focus on customer relationships. Additionally, the bank's competitive pricing, diversified loan portfolio, and efficient cost management contribute to its growth momentum.

7. Detailed Products

Commercial Real Estate Loans

Bank OZK provides commercial real estate loans for property acquisition, development, and construction projects.

Commercial and Industrial Loans

Bank OZK offers commercial and industrial loans for businesses to finance their operations, expansion, and equipment purchases.

Treasury Management Services

Bank OZK's treasury management services help businesses manage their cash flow, optimize liquidity, and reduce financial risk.

Private Banking Services

Bank OZK's private banking services provide personalized financial solutions for high-net-worth individuals and families.

Wealth Management Services

Bank OZK's wealth management services provide investment management, trust services, and estate planning for individuals and families.

Mortgage Lending

Bank OZK offers mortgage lending services for residential and commercial properties.

Deposit Services

Bank OZK's deposit services include checking, savings, and time deposit accounts for individuals and businesses.

8. Bank OZK's Porter Forces

Forces Ranking

Threat Of Substitutes

Bank OZK's threat of substitutes is moderate due to the presence of alternative financial institutions and digital banking platforms.

Bargaining Power Of Customers

Bank OZK's customers have limited bargaining power due to the bank's strong brand reputation and diversified product offerings.

Bargaining Power Of Suppliers

Bank OZK has a diversified supplier base, reducing the bargaining power of individual suppliers.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry in the banking industry, including regulatory hurdles and capital requirements.

Intensity Of Rivalry

The banking industry is highly competitive, with many established players competing for market share, leading to a high intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 29.00%
Debt Cost 6.07%
Equity Weight 71.00%
Equity Cost 10.07%
WACC 8.91%
Leverage 40.84%

11. Quality Control: Bank OZK passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Bank OZK

A-Score: 7.5/10

Value: 7.7

Growth: 8.3

Quality: 8.0

Yield: 7.0

Momentum: 7.0

Volatility: 7.0

1-Year Total Return ->

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Stock-Card
IBOC

A-Score: 7.0/10

Value: 6.2

Growth: 7.1

Quality: 8.3

Yield: 5.0

Momentum: 6.5

Volatility: 8.7

1-Year Total Return ->

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Stock-Card
Popular

A-Score: 6.9/10

Value: 6.3

Growth: 5.9

Quality: 7.0

Yield: 6.0

Momentum: 8.0

Volatility: 8.3

1-Year Total Return ->

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First Bank

A-Score: 6.9/10

Value: 6.5

Growth: 6.6

Quality: 8.0

Yield: 7.0

Momentum: 5.5

Volatility: 7.7

1-Year Total Return ->

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Cathay Bank

A-Score: 6.6/10

Value: 6.3

Growth: 6.1

Quality: 7.4

Yield: 6.0

Momentum: 6.0

Volatility: 7.7

1-Year Total Return ->

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Fulton Financial

A-Score: 6.5/10

Value: 6.1

Growth: 6.3

Quality: 6.0

Yield: 8.0

Momentum: 5.0

Volatility: 7.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

47.26$

Current Price

47.26$

Potential

-0.00%

Expected Cash-Flows