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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 driven by improving diversification, with its loan book diversifying and RESG exposure decreasing to 54.4%. The company's robust capital, conservative underwriting, and resilient credit quality support ongoing dividend growth and buybacks. Additionally, the bank's net income available to common stockholders for the fourth quarter of 2025 was $171.9 million, a 3.5% decrease from $178.1 million for the fourth quarter of 2024. For the full year of 2025, net income available to common stockholders was $699.3 million, a 0.1% decrease from $700.3 million for the full year of 2024. Diluted earnings per common share ("EPS") for the fourth quarter of 2025 were $1.53, a 1.9% decrease from $1.56 for the fourth quarter of 2024.

1.c. Company Highlights

2. Bank OZK's Q4 2025 Earnings: A Cautious Optimism

Bank OZK reported an actual EPS of $1.53, slightly below estimates of $1.56. The company's revenue growth is expected to be around 7.3% next year, according to analyst estimates. The net interest margin held fairly well during the quarter and is expected to remain stable. The company's financial performance was characterized by a prudent build-up of its allowance for credit losses (ACL), which now stands at $680 million, reflecting a probability analysis on every loan.

Publication Date: Jan -23

📋 Highlights
  • Loan Sale & Strategic Clarity:: Sold a loan at par for $12M in fees, emphasizing it's a one-off case without strategy change.
  • Allowance for Credit Losses (ACL):: Built ACL to $632M (up from $300M) to cushion against CRE cycle risks.
  • Credit Outlook & Resolution:: 49 loans secured $56.7M in reserve deposits and $45.1M in principal paydowns; non-accruals at 4 loans.
  • Fee Income & CIB Growth:: Expanded CIB services (loan syndication, hedging) to boost fee income contribution over time.
  • Buyback Program & Capital:: Repurchased 2.25M shares at $44.45 avg., $100M remaining in authorization with $700M+ capital.

Credit Outlook and Provisions

The company expects 2026 trends on credit to be similar to 2025, with net charge-offs potentially around 50 basis points. Bank OZK will continue to do the right thing regarding provisioning and allowance for loan losses based on the economy and portfolio performance. As Brannon Hamblen, President, stated, the life sciences market will take time to rebound, and the company is cautiously optimistic about this sector. The ACL percentage may continue to ease lower over the next year if the economy plays out as expected.

Loan Portfolio and Growth

The company's loan portfolio has a fluid special mention category, with loans moving in and out as negotiations with customers occur. A significant portion of these loans gets resolved favorably. Loan growth guidance for the year is mid-single digits, with growth expected to be stronger in the second, third, and fourth quarters. The company has a strong capital position, having earned almost $700 million in the past year, and will continue its buyback program, with $100 million left in the authorization.

Valuation and Dividend Yield

With a Price-to-Tangible Book Value (P/TBV) close to its current Price-to-Book Ratio of 0.89, the market is pricing in a relatively modest premium for the company's tangible assets. The Dividend Yield stands at 3.74%, providing a relatively attractive return for income-seeking investors. The company's Return on Equity (ROE) is 11.93%, indicating a decent return on shareholders' equity.

Outlook and Expectations

The company's guidance and outlook suggest a constructive environment, with potential for growth and improvements in 2027. The resolution of current non-performing assets may occur over various timeframes, and the existing reserve is expected to be sufficient to work through issues that may surface over the next 12 to 18 months. Overall, Bank OZK's cautious optimism is reflected in its prudent provisioning and allowance for loan losses, positioning the company for potential growth and returns.

3. NewsRoom

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Why Is Bank OZK (OZK) Up 3.5% Since Last Earnings Report?

Feb -19

Source: zacks.com

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One Fund Discloses $11 Million Bank OZK Stock Buy Even as Stock Lags S&P 500

Feb -12

Source: fool.com

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Fairholme Focused Income Fund's Strategic Move: Significant Addition of CF Industries Holdings Inc

Feb -06

Source: gurufocus.com

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Fairholme Fund's Strategic Moves: A Closer Look at The St. Joe Co

Feb -06

Source: gurufocus.com

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Diamond Hill Small Cap Strategy: Q4 2025 Portfolio Review

Feb -04

Source: seekingalpha.com

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Hussman Strategic Advisors Inc. Makes New $2.14 Million Investment in Bank OZK $OZK

Jan -28

Source: defenseworld.net

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Bank OZK Shares Fall as Q4 Earnings Miss Estimates, Provisions Rise

Jan -21

Source: zacks.com

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Bank OZK (OZK) Q4 2025 Earnings Call Transcript

Jan -21

Source: seekingalpha.com

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: 7.1/10

Value: 7.9

Growth: 8.3

Quality: 7.6

Yield: 7.0

Momentum: 4.5

Volatility: 7.0

1-Year Total Return ->

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Stock-Card
Popular

A-Score: 6.8/10

Value: 6.7

Growth: 5.9

Quality: 7.1

Yield: 5.0

Momentum: 8.0

Volatility: 8.3

1-Year Total Return ->

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Stock-Card
First Bank

A-Score: 6.8/10

Value: 7.1

Growth: 6.6

Quality: 8.2

Yield: 6.0

Momentum: 5.0

Volatility: 8.0

1-Year Total Return ->

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Stock-Card
Cathay Bank

A-Score: 6.3/10

Value: 6.0

Growth: 6.1

Quality: 7.4

Yield: 6.0

Momentum: 4.5

Volatility: 7.7

1-Year Total Return ->

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Stock-Card
Fulton Financial

A-Score: 6.2/10

Value: 6.3

Growth: 6.3

Quality: 6.1

Yield: 8.0

Momentum: 3.0

Volatility: 7.7

1-Year Total Return ->

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Stock-Card
IBOC

A-Score: 5.9/10

Value: 4.7

Growth: 7.0

Quality: 6.2

Yield: 5.0

Momentum: 4.0

Volatility: 8.3

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

48.71$

Current Price

48.71$

Potential

-0.00%

Expected Cash-Flows