Bank OZK
- Open
- 52.10
- Day high
- 52.10
- Day low
- 51.34
- Prev close
- 52.01
- Volume
- 1.0M
- Mkt cap
- $5.7B
- P/E (TTM)
- 8.3
- EPS (TTM)
- $6.17
- P/B
- 0.9
- P/S
- 2.0
- Yield
- 3.62%
- Per share
- $1.86
Bank OZK (OZK) is a Financial Services company listed on NASDAQ. The stock is down 1% over the past year.
Bank OZK (OZK) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 3 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
OZK earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Apr 22, 2026 | $1.46 | $1.44 | -1.4% | $422M | -0.2% |
| Jan 20, 2026 | $1.56 | $1.53 | -1.9% | $441M | +1.5% |
| Oct 16, 2025 | $1.65 | $1.59 | -3.6% | $450M | +0.6% |
| Jul 17, 2025 | $1.51 | $1.58 | +4.6% | $428M | -4.2% |
| Apr 16, 2025 | $1.41 | $1.47 | +4.3% | $409M | +1.6% |
| Jan 16, 2025 | $1.45 | $1.56 | +7.6% | $412M | +3.0% |
| Oct 17, 2024 | $1.54 | $1.54 | +0.0% | $423M | -0.2% |
| Jul 17, 2024 | $1.52 | $1.53 | +0.7% | $417M | -1.9% |
| Apr 17, 2024 | $1.46 | $1.51 | +3.4% | $406M | +2.3% |
| Jan 18, 2024 | $1.48 | $1.50 | +1.4% | $415M | +4.2% |
| Oct 19, 2023 | $1.42 | $1.49 | +4.9% | $393M | +1.3% |
| Jul 20, 2023 | $1.42 | $1.47 | +3.5% | $389M | +3.8% |
Bank OZK company profile
Overview
Bank OZK (NASDAQ:OZK) is a regional bank founded in 1903 and headquartered in Little Rock, Arkansas. Originally known as Bank of the Ozarks until its name change in July 2018, the bank has evolved from a small Arkansas-based institution into a multi-state regional bank with approximately 240 offices across nine states. The bank has distinguished itself through its specialized focus on commercial real estate lending, particularly construction and development projects, while simultaneously working to diversify its loan portfolio across multiple business segments.
Business
Bank OZK operates as a regional commercial bank providing traditional banking services alongside specialized lending products. The banking industry serves as a financial intermediary, accepting deposits from customers and using those funds to make loans to borrowers, earning profit from the difference between interest paid on deposits and interest earned on loans. The bank's operations are organized into several key business segments: 1. **Real Estate Specialties Group (RESG)** - This is the bank's flagship division, representing approximately 64% of the funded loan portfolio. RESG focuses on construction and development loans for commercial real estate projects including multifamily housing, industrial facilities, and condominium developments. These loans typically finance new construction projects with conservative loan-to-value ratios averaging 43-44%. 2. **Corporate and Institutional Banking (CIB)** - Currently representing about 7% of the loan portfolio but rapidly expanding, CIB provides traditional commercial banking services to mid-market and larger corporate clients. This includes working capital lines of credit, equipment financing, and relationship banking services across multiple industry verticals. 3. **Indirect Lending** - Comprising approximately 12-13% of the portfolio, this segment focuses on recreational vehicle and marine financing, providing loans to consumers through dealer networks. 4. **Community Banking** - Traditional retail banking services including checking and savings accounts, consumer loans, mortgages, and small business lending through the bank's branch network. The bank also provides ancillary services including treasury management, trust and wealth management, merchant services, and various digital banking platforms. Bank OZK operates across Arkansas, Georgia, Florida, North Carolina, Texas, South Carolina, California, New York, and Mississippi.
Revenue model
Bank OZK generates revenue primarily through **net interest income**, which is the difference between interest earned on loans and interest paid on deposits and other funding sources. The bank's business model centers on accepting deposits from retail and commercial customers at relatively low interest rates, then lending those funds at higher rates to borrowers, particularly in commercial real estate construction and development. The bank's **paying customers** include deposit holders (who receive interest on their deposits) and borrowers (who pay interest on loans). Revenue streams include: 1. **Interest income** from loans, which currently yields around 8% on the RESG portfolio 2. **Fee income** from treasury management services, trust and wealth management, and merchant processing 3. **Deposit service fees** and account maintenance charges **Factors that increase margins** include rising interest rates (which typically increase loan yields faster than deposit costs due to loan floors), strong loan demand in target markets, successful portfolio diversification into higher-yielding segments, and effective deposit cost management. The bank benefits from loan floors that provide downside protection when rates decline. **Factors that decrease margins** include falling interest rates (though mitigated by loan floors), increased competition for deposits leading to higher deposit costs, credit losses requiring increased loan loss provisions, and regulatory changes that increase compliance costs. The bank's heavy concentration in commercial real estate makes it sensitive to construction market cycles and regional economic conditions. Additionally, the current higher-for-longer interest rate environment creates pressure as deposit costs rise while some loan yields are capped by existing agreements.
Competitive moat
Bank OZK's competitive moat is **moderate but specialized**, built primarily around its expertise in commercial real estate construction lending through the RESG division. The bank has developed deep relationships with high-quality real estate developers and sponsors, particularly in growing Sunbelt markets, which creates a network effect where successful projects lead to repeat business and referrals. The bank's **key competitive advantages** include conservative underwriting standards with low loan-to-value ratios, extensive experience in construction lending spanning multiple economic cycles, and strong sponsor relationships that provide deal flow. Management's disciplined approach to credit risk, maintaining weighted average loan-to-cost ratios of 51% and loan-to-value ratios of 43%, demonstrates institutional knowledge that competitors may find difficult to replicate quickly. However, the moat faces **significant challenges**. The commercial real estate lending market is highly competitive with numerous regional and national banks, credit unions, and non-bank lenders competing for quality deals. The bank's geographic concentration in certain markets creates vulnerability to regional economic downturns. Additionally, the ongoing diversification strategy, while prudent for risk management, may dilute the specialized expertise that forms the core of the competitive advantage. **Potential disruption** could come from fintech lenders offering more efficient loan origination processes, larger banks with superior technology and capital resources, or economic conditions that fundamentally alter commercial real estate development patterns. The bank's relatively small size compared to national competitors also limits its ability to compete for the largest deals or offer comprehensive services to major corporate clients.
Risks & safety
Bank OZK demonstrates **strong financial stability** with robust capital levels and conservative risk management practices. **Liquidity and Solvency:** - Strong cash position of $2.78 billion in cash and short-term investments - Debt-to-equity ratio of 15.5%, indicating conservative leverage - No significant solvency concerns given strong capital ratios **Valuation Metrics:** - Price-to-earnings ratio of 6.9x, suggesting potential undervaluation - Price-to-book ratio of 0.89x, trading below book value - EV/EBITDA of 2.9x, indicating efficient operations **Credit Risk Considerations:** - Loan loss reserves increased from $300M to $574M over eight quarters, showing proactive risk management - Conservative loan-to-value ratios averaging 43-44% provide cushion against real estate downturns - Allowance for credit losses represents adequate provisioning for potential losses **Other Factors:** - Strong return on equity of 12.6% for fiscal 2024 - Consistent profitability with record earnings performance - Geographic diversification across nine states reduces concentration risk
Recent development
Over the past few years, Bank OZK has pursued a **strategic diversification initiative** aimed at reducing its dependence on the Real Estate Specialties Group from approximately 70% to a target of 50% of the loan portfolio. This transformation involves significant expansion of the Corporate and Institutional Banking division, which management expects to rival RESG in size within 5-10 years. **Key strategic moves** include aggressive hiring across business lines, expanding the CIB team from 8-10 people to over 30, with plans to reach 50-60 team members. The bank has launched new business lines including mortgage operations, syndications desk, interest rate hedging capabilities, and expanded trust and wealth management services. **Geographic expansion** is occurring through approximately 10% branch network growth by end of 2025, primarily in existing states with particular focus on Texas markets. Each new branch is expected to generate $20-50 million in deposits, with primary impact anticipated in 2026-2028. **Technology and operational improvements** include enhanced digital banking platforms, expanded treasury management capabilities, and improved merchant services offerings. The bank has also been opportunistically acquiring talent from competitors and exploring potential FDIC-assisted bank acquisitions. **Credit strategy evolution** involves maintaining conservative underwriting standards while expanding into new lending verticals including fund finance, asset-based lending, and specialized industry sectors. Management has proactively increased loan loss reserves and continues extensive portfolio reappraisals to maintain credit quality during the transition period.
OZK company profile · for informational purposes only — not investment advice.
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