Bank Ozk · NASDAQ:OZK
Bank Ozk — Q2 2026 Earnings Presentation
38 slides from Bank Ozk's earnings presentation, Jul 22, 2026
Slide 1: Bank OZK
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation and other communications by the Bank and its management may include certain statements that constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements can be identified by the fact
Slide 3: Bank OZK (Nasdaq: OZK) – At a Glance
Bank OZK (Nasdaq: OZK) – At a Glance Bank OZK is a high-performing regional bank with deep expertise in specialized lending businesses nationwide. We operate through 255* retail branches in Arkansas, Georgia, Florida, Texas, North Carolina, and Tennessee and 13* loan production offices. Recent Finan
Slide 4: First Quarter 2026 Highlights
First Quarter 2026 Highlights 4
Slide 5: Net Interest Income Trends
Net Interest Income Trends Our net interest income for the first quarter of 2026 was $385.6 million, a 3.0% increase from the first quarter of 2025 but a 5.3% decrease from the fourth quarter of 2025. There is an element of seasonality in our net interest income attributable, in part, to the first q
Slide 6: Growth in Loan Balances with Favorable Yields
Growth in Loan Balances with Favorable Yields Our loans were $32.98 billion at March 31, 2026, having increased $0.66 billion, or 2.0% not annualized, from December 31, 2025 and $1.87 billion, or 6.0%, from March 31, 2025. As expected, during the quarter just ended, excellent growth from CIB and Ind
Slide 7: Opportunistic Growth in our Investment Securities Portfolio
Opportunistic Growth in our Investment Securities Portfolio Our investment securities, all of which are categorized as available-for-sale, were $3.84 billion at March 31, 2026, increases of $0.88 billion, or 29.5%, from March 31, 2025 and $1.23 billion, or 47.3% not annualized, from December 31, 202
Slide 8: Deposit Growth Aligned with Loan Growth
Deposit Growth Aligned with Loan Growth Our deposits were $33.76 billion at March 31, 2026, increases of $1.84 billion, or 5.8%, from March 31, 2025, and $0.38 billion, or 1.1% not annualized, from December 31, 2025. Quarterly Deposit Balances & Cost of Interest Bearing Deposits $40,000 7.00% $33,52
Slide 9: Diverse Deposit Base and Substantial Liquidity Sources
Diverse Deposit Base and Substantial Liquidity Sources Because of the substantial “retail” nature of our deposit base, 81% of our deposits are either insured (67% at March 31, 2026) or, in the case of public funds and certain other deposits, collateralized (14% at March 31, 2026). As of March 31, 20
Slide 10: Net Interest Margin Consistently Better Than the Industry
Net Interest Margin Consistently Better Than the Industry During the quarter just ended, our net interest margin was 4.20%, decreases of 11 bps and 10 bps, respectively, from the first quarter of 2025 and the fourth quarter of 2025. In the fourth quarter of 2025, the latest quarter for which compara
Slide 11: Variable Rate Loans With Floors Provide Support to Our NIM as Rates Decline
Variable Rate Loans With Floors Provide Support to Our NIM as Rates Decline At March 31, 2026, 86% of our total commitment of loans had variable rates, of which 78% were tied to 1-month term SOFR, 17% to WSJ Prime and 5% to other indexes. At March 31, 2026, 89% of our total commitment of variable ra
Slide 12: Efficiency Ratio Among the Best in the Industry
Efficiency Ratio Among the Best in the Industry Even with increases in our non-interest expense, our efficiency ratio continues to be among the best in the industry, and we believe that our significant recent investments, while weighing on our efficiency ratio in the short term, will generate substa
Slide 13: Diverse Lending Verticals Contribute to Favorable Asset Quality, Profitability & Growth
Diverse Lending Verticals Contribute to Favorable Asset Quality, Profitability & Growth Real Estate Specialties Group (“RESG”) is a nationally recognized leader in commercial real estate construction and development finance. Corporate and Institutional Banking (“CIB”) includes loans from Asset B
Slide 14: Achieving Meaningful Diversification of our Loan Portfolio
Achieving Meaningful Diversification of our Loan Portfolio Loan Portfolio as of We are pleased that our “growth, growth and diversification” strategy has achieved such 3/31/26 meaningful portfolio diversification in recent quarters, principally through growth in our CIB and Indirect RV & Marine port
Slide 15: Changes in Funded and Unfunded Balances
Changes in Funded and Unfunded Balances During the quarter just ended, CIB grew $0.94 billion and Indirect RV & Marine grew $0.11 billion, while RESG declined $0.39 billion. Over the last four quarters, CIB grew $3.19 billion and Indirect RV & Marine grew $0.61 billion, while RESG declined $2.00 bil
Slide 16: RESG – Nationally Recognized Industry Leader
RESG – Nationally Recognized Industry Leader Started in 2003, RESG is a nationally recognized industry RESG Business Model Reduces Credit Risk leader in construction, land & development lending. It has historically been our most significant growth engine and • RESG is always the sole senior secured
Slide 17: RESG Originations and Repayments
RESG Originations and Repayments RESG Loan Originations ($ billions) RESG Loan Repayments & Other Activity ($ billions) Q1 Q2 Q3 Q4 Total* Q1 Q2 Q3 Q4 Total* FY2021 $1.28 $1.46 $2.21 $2.99 $7.94 FY2021 $1.48 $1.68 $1.34 $1.72 $6.22 FY2022 $3.14 $3.53 $4.35 $2.81 $13.82 FY2022 $1.31 $2.34 $1.28 $0.72
Slide 18: Cadence of RESG Originations and Repayments - by Year of Origination
Cadence of RESG Originations and Repayments - by Year of Origination The illustration below shows the cadence of RESG loan originations and repayments. It shows the amount of each year’s originations which have been repaid and which remain as outstanding commitments, both funded and unfunded. $15.00
Slide 19: RESG’s Portfolio Diversification by Product Type
RESG’s Portfolio Diversification by Product Type Funded Balance Unfunded Commitment Loan-to-Cost* Loan-to-Value* 10,000 120% 9,000 95% 100% 8,000 Total Commitment by Product Type LTC & LTV Ratios 7,000 93% 80% 6,000 ($ millions) 52% 55% 54% 54% 5,000 50% 60% 49% 47% 4,000 41% 51% 49% 40% 3,000 47% 3
Slide 20: RESG Commitments by Metropolitan Area
Total Commitment ($ millions) $- $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 Miami-Fort Lauderdale-West Palm Beach, FL $4,360 New York-Newark-Jersey City, NY-NJ $2,793 San Diego-Chula Vista-Carlsbad, CA $1,908 San Francisco-Oakland-Fremont, CA $1,400 Boston-Cambridge-Newton, MA-NH $1,309 Los Angeles-L
Slide 21: RESG Portfolio Stratification by Loan Size
RESG Portfolio Stratification by Loan Size (as of March 31, 2026) ($ millions) No. of Total Funded Commitment Distribution by Size Tranche Loans Funded & Unfunded $20,000 100% $0 - $125mm 190 $ 7,176 $ 11,254 Funded ($ millions) Unfunded ($ millions) $125+ mm - $250mm 51 5,440 8,669 LTV Ratio* (%) L
Slide 22: Corporate & Institutional Banking – Driving Diversified Growth
Corporate & Institutional Banking – Driving Diversified Growth Portfolio Statistics – as of March 31, 2026 Targeting Stable, Predictable & Diversified Industries Total funded $6.20 Billion CIB continued to achieve excellent growth and enhance portfolio Total funded & unfunded $11.92 Billion diversif
Slide 23: Community Bank Lending – Loans through our Branch Network
Community Bank Lending – Loans through our Branch Network Community Banking accounted for $5.24 billion, or 15.9%, of the funded balance of loans as of March 31, 2026, and included consumer and small business loans, business banking loans, loans originated by our commercial (generalist) lenders, and
Slide 24: Indirect RV & Marine Lending – National Consumer Lending Platform
Indirect RV & Marine Lending – National Consumer Lending Platform Indirect RV & Marine lending (“ILD”) is a nationwide business that has allowed us to originate consumer loans while maintaining our ILD Trends conservative credit-quality standards. • This high-quality consumer portfolio accounted for
Slide 25: Asset Quality
<> Asset Quality <> Bank OZK
Slide 26: Net Charge-off Ratio Trends
Net Charge-off Ratio Trends • Our annualized net charge-off ratio was 0.57% for the quarter just ended. During the quarter just ended, we recognized charge-offs on three previously classified or criticized RESG loans, two of which are now substandard non-accrual and one of which was transferred to f
Slide 27: ACL % of Total Loans + Unfunded Commitment
Allowance for Credit Losses (“ACL”) Build Over the Last 15 Quarters As of March 31, 2026, our ACL of $628.5 million consisted of our allowance for loan losses (“ALL”) at $480.0 million, or 1.46% of loans, and our reserve for losses on unfunded loan commitments at $148.5 million, or 0.84% of unfunded
Slide 28: Portfolio Credit Quality Trends
Portfolio Credit Quality Trends Risk Categories and Asset Quality Metrics ($ millions) As of Our total classified and criticized assets 3/31/25 6/30/25 9/30/25 12/31/25 3/31/26 have increased moderately over the past Total Loans $ 31,108 $ 33,005 $ 32,846 $ 32,318 $ 32,975 five quarters. Pass Rated
Slide 29: RESG Portfolio By Origination Date & LTV
RESG Portfolio By Origination Date & LTV (As of March 31, 2026) The loan-to-value (“LTV”) metrics on each of the 262 credits within the RESG portfolio as of March 31, 2026, are illustrated below. The significant protection provided by RESG’s conservative loan-to-cost (“LTC”) and LTV metrics is alway
Slide 30: Demonstrated Sponsor/Capital Partner Support of RESG Loans
Demonstrated Sponsor/Capital Partner Support of RESG Loans We structure RESG loans so that sponsors/capital partners are highly incentivized to support their loans, even in challenging times. Important elements include sizable equity investments relative to our low leverage loans and originating loa
Slide 31: Our Strong Capital Provides Significant Optionality and Shareholder Returns
Our Strong Capital Provides Significant Optionality and Shareholder Returns 31
Slide 32: Strong Capital Position Provides Significant Optionality
Strong Capital Position Provides Significant Optionality CET1 Capital CET 1 Capital Ratio Ratio Tier1 Capital Tier 1 Capital Ratio Ratio (11.60% (11.60%atat3/31; 3/31;+28 bpsbps +28 since 1Q25) since 1Q25) (12.35% (12.35%atat3/31; 3/31;+25 bpsbps +25 since 1Q25) since 1Q25) 20.00% 20.00% 18.00% 18.0
Slide 33: Building Value for Shareholders
Building Value for Shareholders $53.19 $60.00 $47.15 BVPS TBVPS $50.00 $40.00 $30.00 Book $20.00 Value and $10.00 Tangible $- 1Q16 1Q17 1Q18 1Q19 1Q20 1Q21 1Q22 1Q23 1Q24 1Q25 1Q26 Book Value Per • During the quarter just ended, our book value per common share (“BVPS”) increased Share* $0.73, or 1.4
Slide 34: Returning Capital to Shareholders
Returning Capital to Shareholders Common Dividend Payments Stock Repurchase Program We have increased our common stock cash $400.0 15.7% 16.9% 18.0% % of Shares Repurchased Since $350.0 dividend in each of the last 63 quarters and $350.0 16.0% $ of Shares Repurchased 13.1% 13.1% every year since our
Slide 35: Non-GAAP Reconciliations
Non-GAAP Reconciliations 35
Slide 36: Non-GAAP Reconciliations
Non-GAAP Reconciliations Calculation of Total Common Stockholders’ Equity, Total Tangible Common Stockholders’ Equity and Tangible Book Value per Share Unaudited (Dollars in Thousands, Except per Share) As of March 31, 2016 2017 2018 2019 2020 2021 Total stockholders' equity before noncontrolling in
Slide 37: Non-GAAP Reconciliations
Non-GAAP Reconciliations Calculation of Total Common Stockholders’ Equity, Calculation of Average Common Stockholders’ Equity, Average Tangible Total Tangible Common Stockholders’ Equity and Common Stockholders’ Equity and the Annualized Returns on Average the Ratio of Total Tangible Common Stockhol
Slide 38: Contents
C O N T E N T S 38