Bank OZK Shares Gain 3.5% After Q4 EPS Miss and Loan Growth
Since its Q4 2025 report, Bank OZK shares have climbed 3.5% as EPS of $1.53 missed estimates and provisions for credit losses rose 36% year over year. Net revenues grew 6.9% to $440.6m, while net interest income rose 7.3% to $407m and deposits hit $33.4bn.
1. Q4 2025 Earnings Results
Bank OZK reported Q4 EPS of $1.53, down 1.9% year over year and missing estimates by $0.03, driven by a 36% rise in provisions for credit losses and a 15.4% increase in non-interest expenses to $161.6m. Non-interest income rose 2% to $33.6m.
2. Balance Sheet Highlights
Net loans increased to $31.8bn from $29.5bn, while deposits grew 7.5% to $33.4bn. Net interest income climbed 7.3% to $407m and net revenues rose 6.9% to $440.6m, though net interest margin contracted 3 basis points to 4.30%.
3. Credit Quality Trends
Net charge-offs jumped to 1.18% of average loans from 0.16%, and the non-performing loans ratio more than doubled to 1.06%. Provision expenses rose to $50.6m, indicating weakening asset quality.
4. 2026 Outlook
Management forecasts Q1 net interest income of $385-390m and expects mid-single-digit loan growth for full-year 2026, accelerating to 10-11% in 2027. Non-interest income is projected to increase by mid- to high-single digits, while expenses rise 8-9% to support growth initiatives.