Business
Bank OZK : 3rd Quarter 2025 Investor Presentation
Bank OZK : 3rd Quarter 2025 Investor
About this update from Bank Ozk
BankOZK Nasdaq: OZK November 2025 Bank OZK is a high-performing regional bank with deep expertise in specialized lending businesses nationwide. We operate through 248 retail branches in Arkansas, Georgia, Florida, North Carolina, Texas and Tennessee and 13 loan production offices. Recent Financial Highlights* Total Assets $41.6 billion Total Loans $32.8 billion Total Deposits $34.0 billion 9M25 Net Interest Margin 4.34% 9M25 Efficiency Ratio 35.4% 9M25 Net Charge-off Ratio** 0.26% 9M25 Return on Average Assets** 1.77% 9M25 Return on Average TCE + ** 14.44% TCE / TA Ratio + 12.44% * As of and for the nine months ended September 30, 2025. ** Annualized. + TCE = Tangible Common Equity; TA = Tangible Assets The calculations of the Bank's non-GAAP financial measures and the reconciliations to generally accepted accounting principles ("GAAP") are included in the schedules at the end of this presentation. In addition to the branches and LPOs identified above, we have our corporate headquarters located in Little Rock, AR; our Real Estate Specialties Group headquarters located in Dallas, TX; our Corporate and Institutional Banking Group headquarters located in Houston, TX; and our Indirect Lending headquarters located in Alpharetta, GA (each including a branch or LPO counted above); as well as an operations campus located in Ozark, AR; and a solar power plant located in Stuttgart, AR. Third Quarter 2025 Highlights Record Net Income Available to Common Stockholders of $180.5 million. Record Diluted Earnings Per Common Share of $1.59. Record Net Interest Income of $413.9 million. Loan Balances - Loans decreased $0.16 billion, or 0.5% not annualized, due to $2.44 billion in Real Estate Specialties Group ("RESG") loan repayments. Record Deposit Balances - Deposits grew to a record $33.98 billion, an increase of $0.46 billion, or 1.4% not annualized. Asset Quality - Our annualized net charge-off ratios were 0.41% for the quarter and 0.26% for the first nine months of 2025, consistent with our previous guidance. ACL Build - Over the last 13 quarters we have more than doubled our Allowance for Credit Losses ("ACL") from $300 million to $680 million, including a $14 million increase in the quarter just ended. We believe this ACL build has been a prudent and appropriate response to the shifting mix of risk factors that have driven the challenging and uncertain macroeconomic environment over those 13 quarters. Efficiency Ratio of 35.1%, among the best in the industry. Return on Average Assets of 1.74% (annualized) in the quarter just ended. Capital* - At September 30, 2025, our ratios of total common stockholders' equity to total assets and total tangible common stockholders' equity to tangible assets ("TCE ratio") were 13.83% and 12.44%, respectively. Book Value and Tangible Book Value Per Common Share* - Our book value and tangible book value per common share at September 30, 2025 were $51.09 and $45.23, respectively, increases of $1.50 and $1.51 during the quarter just ended and $4.78 and $4.74 over the last four quarters. Over the last ten years we have consistently increased book value and tangible book value per common share resulting in compounded annual growth rates of 13.1% and 13.2%, respectively. Dividends - We recently increased our dividend on our common stock for the 61st consecutive quarter. Share Repurchases - Our growth in risk-based capital ratios in the quarter just ended has positively influenced our new share repurchase parameters, both price and volume, pursuant to our $200 million stock repurchase program which became effective July 1, 2025. UPDATE: From October 21 through November 3, 2025, we repurchased 600,000 shares for $27.2 million. * The calculations of the Bank's non-GAAP financial measures and the reconciliations to GAAP are included in the schedules at the end of this presentation. Our net interest income for the third quarter of 2025 was a record $413.9 million, a 6.3% increase from the third quarter of 2024. Our net interest income for the first nine months of 2025 was $1.19 billion, a 2.7% increase from $1.15 billion for the first nine months of 2024. $367 $371 $377 $388 $389 $379 $375 $397 $414 $450 $400 Net Interest Income ($ millions) $350 $300 $250 $200 $150 $100 $50 3Q25 2Q25 1Q25 4Q24 3Q24 2Q24 1Q24 4Q23 3Q23 $- Our excellent net interest income in the quarter just ended was our second consecutive quarterly record and was consistent with our previous guidance which anticipated record net interest income in one or more quarters of 2025. Assuming two more 25-basis point Fed funds rate cuts this year, we would expect our fourth quarter net interest income to be in the range of the second quarter's $397 million, more or less. We continue to expect to achieve record net interest income for the full year of 2025. Our goal for 2026 is to improve on the expected record net interest income for the full year of 2025. Achieving this goal will depend on achieving sufficient growth in average earning assets to offset the expected reduction in our net interest margin from loans repricing more quickly than deposits in a declining interest rate environment. Of course, future net interest income will depend on numerous factors, including the timing and magnitude of both growth in earning assets and any Fed interest rate changes. Our loans were $32.85 billion at September 30, 2025, a decrease of $0.16 billion, or 0.5% not annualized, from the record level at June 30, 2025, but an increase of $2.88 billion, or 9.6% not annualized, from December 31, 2024. During the quarter just ended, RESG loan repayments offset excellent growth from Corporate & Institutional Banking ("CIB") and other lending teams. In the third quarter of 2025, our yield on loans was 7.74%, a decrease of four basis points ("bps") from the second quarter of 2025 and a decrease of 92 bps from the third quarter of 2024. These decreases reflect the impact on our predominately variable-rate loan portfolio of the cumulative 100-basis point reduction in the Fed funds rate during the last four months of 2024 and some impact of the 25-basis point reduction in September 2025. $35,000 $30,000 Quarterly Loan Balances & Yields $33,005 $32,846 $28,674 $29,218 $29,969 $31,108 $25,332 $26,459 $28,031 8.58% 8.64% 8.70% 8.76% 8.66% 8.17% 7.79% 7.78% 7.74% 14.00% 12.00% Period-End Loans ($ millions) $25,000 $20,000 $15,000 10.00% Loan Yield 8.00% 6.00% $10,000 4.00% $5,000 2.00% $- 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 0.00% Period-End Loans Loan Yield In the fourth quarter of 2025, we expect another quarter of excellent growth from CIB and other lending teams to be offset by elevated RESG repayments, likely resulting in some further contraction in total loan balances. For the full year of 2026, we expect mid-single digit percentage loan growth including strong CIB growth offset by significant RESG loan repayments. Following the expected 2025-2026 RESG elevated repayment cycle, we expect loan growth to increase meaningfully in 2027 and subsequent years with CIB, RESG and our other lending teams all contributing to future growth. Our investment securities, all of which are categorized as available-for-sale, were $2.76 billion at September 30, 2025, decreases of $0.06 billion, or 2.2% not annualized, from June 30, 2025 and $0.08 billion, or 2.7% not annualized, from December 31, 2024. At September 30, 2025, our investment securities had an average effective duration of approximately 5.29 years. Quarterly Investment Securities Balances & Yields $4,000 Period-End Securities Balance ($ millions) $3,500 $3,000 $2,500 $2,000 $1,500 $1,000 $500 7.00% $3,154 $3,244 $3,072 $2,982 $1,024 $1,174 $2,952 $2,836 $2,968 $2,822 $1,154 $1,159 $2,760 $1,233 $1,280 $1,358 $1,319 $1,290 4.03% 4.27% 4.25% 3.27% 2.66% 2.84% 2.93% 3.05% 3.00% $2,130 $2,071 $1,918 $1,823 $1,719 $1,556 $1,610 $1,503 $1,470 Total Tax Equivalent Yield 6.00% 5.00% 4.00% 3.00% 2.00% 1.00% $- 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 Taxable Tax-exempt Total Tax Equivalent Yield 0.00% In the third quarter of 2025, our tax-equivalent yield on investment securities was 4.25%, decreasing two bps from the second quarter of 2025, but increasing 125 bps from the third quarter of 2024. Our portfolio yield has benefited from the reinvestment, at more favorable rates, of the proceeds from a significant volume of lower-yielding bonds which matured in the final quarter of 2024 and the first two quarters of 2025. Our deposits were a record $33.98 billion at September 30, 2025, increases of $0.46 billion, or 1.4% not annualized, from June 30, 2025 and $2.94 billion, or 9.5% not annualized, from December 31, 2024. This was our twelfth consecutive quarterly record for deposit balances. Quarterly Deposit Balances & Cost of Interest Bearing Deposits ("COIBD") $40,000 $35,000 Period-End Deposits ($ millions) $30,000 $25,000 $20,000 $15,000 $10,000 $5,000 7.00% $33,522 $33,985 $31,043 $31,926 $29,406 $29,944 $30,572 $27,405 $25,553 3.89% 4.15% 4.24% 4.31% 4.07% 3.78% 3.48% 3.70% 3.64% 6.00% 5.00% COIBD 4.00% 3.00% 2.00% 1.00% $- 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 0.00% Total Deposits COIBD In the third quarter of 2025, our COIBD was 3.64%, decreases of six bps and 67 bps, respectively, from the second quarter of 2025 and the third quarter of 2024 reflecting the cumulative 100-basis point reduction in the Fed funds rate during the last four months of 2024 and some impact of the 25-basis point reduction in September 2025. Following each Fed funds rate reduction, our COIBD should move lower over several quarters, but should tend to lag the more immediate decrease in our loan yields. During the quarter just ended, our net interest margin was 4.35%, a decrease of one basis point from the second quarter of 2025, and a decrease of 20 bps from the third quarter of 2024. In the second quarter of 2025, the latest quarter for which comparative data is available, our net interest margin outperformed the industry by 110 bps, continuing our long history of outperformance. Net Interest Margin vs. the Industry 6.00% 5.00% 5.05% 4.82% 4.71% 4.68% 4.00% 4.55% Favorable 1.10% Variance vs Industry* 4.33% 4.31% 4.36% 4.35% 3.00% 3.30% 3.28% 3.17% 3.16% 3.23% 3.28% 3.25% 3.26% 2.00% 1.00% 0.00% 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 Bank OZK FDIC Insured Institutions Following any Fed interest rate reduction, we anticipate our loan yields will decrease faster than our deposit costs, likely resulting in some decrease in our net interest margin, at least until time deposits reprice and/or floor rates are reached on more variable rate loans (see Page 10). Although no Fed interest rate increases are currently expected, following any Fed interest rate increase, we anticipate our loan yields would increase faster than our deposit costs, likely resulting in some increase in our net interest margin until time deposits reprice. * Data for all FDIC insured institutions from the FDIC Quarterly Banking Profile, last updated second quarter 2025. At September 30, 2025, 86% of our total commitment of loans had variable rates, of which 82% were tied to 1-month term SOFR, 14% to WSJ Prime and 4% to other indexes. At September 30, 2025, 93% of our total commitment of variable rate loans had floor rates. The following chart the percentage of our total commitment of variable rate loans at September 30, 2025 that were at their floor rate or would have been at their floor rate following various hypothetical decreases in the applicable index rates. At Floor 25 bps 50 bps 75 bps 100 bps 125 bps 150 bps 175 bps 200 bps 250 bps 300 bps 350 bps 400 bps 450 bps 22% 36% 41% 49% 55% 61% 65% 66% 67% 70% 73% 75% 80% 88% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Expertise in Diverse Lending Verticals Contributes to Our Favorable Asset Quality, Strong Profitability & Growth We conduct extensive lending operations through our 248* retail branches and 13* loan production offices: Real Estate Specialties Group ("RESG") is a nationally recognized leader in commercial real estate construction and development finance. Our Community Bank originates loans primarily throughout our six-state branch footprint through commercial (generalist) lenders and specialty lending teams. Corporate and Institutional Banking ("CIB") includes our Asset Based Lending Group ("ABLG"), Corporate Banking & Sponsor Finance ("CBSF"), Lender Finance Group ("LFG," formerly the Capital Solutions portion of the previous Equipment Finance & Capital Solutions Group), Fund Finance, Equipment Finance Group ("EFG"), Natural Resources Group ("NRG") and Loan Syndications & Corporate Services ("LSCS"). These teams primarily focus on non-real estate lending primarily within our branch footprint and secondarily in other markets nationwide. Indirect RV & Marine lending is a nationwide business originating consumer loans through an extensive dealer network. * As of November 3, 2025. 11 Loan Portfolio as of 9/30/25 9/30/2025 $ millions Balances Our "growth, growth and diversification" strategy is achieving greater portfolio diversification through growth in our CIB, Indirect RV & Marine and Community Banking portfolios while continuing to capitalize on the unique strengths and expertise of RESG to contribute to longer term growth. We expect these other lending teams will continue to contribute meaningfully to further growth and diversification, especially as RESG is likely to continue to have elevated repayments during RESG $ 18,945 the remainder of 2025 and in 2026. Implicit in this diversification strategy is an unwavering focus Community Banking 5,231 CIB 4,470 Indirect Lending 4,200 on asset quality from each of these lending teams. We believe the development and ramp-up of CIB over the past several years was well timed. CIB has achieved significant growth at the same time RESG has absorbed elevated repayments, Total 12.8% $ 32,846 including record repayments in the quarter just ended. This has resulted in a timely handoff of the "growth baton" from RESG to CIB. Given our expectation that RESG is likely to have elevated repayments in most quarters through 2026, RESG's percentage of loans should continue to decline in the remainder of 2025 and 2026, 13.6% 15.9% 57.7% and we expect it will go below 50% during 2026. Of course, we expect that RESG will resume meaningful growth following its expected 2025-2026 elevated repayment cycle. Our long-term goal is for all of our lending teams to grow significantly and with more balance in the portfolio. Of course, opportunities will shift over time, and we will always want to capitalize on the best opportunities. Eventually, we expect CIB's and RESG's loan portfolios could be roughly equal in size with each accounting for about one-third of our outstanding loans. The remainder would be a combination of loans from Community Banking and Indirect RV & Marine. We believe such balance and diversification would be very beneficial, while maximizing future growth opportunities. RESG's percentage of loans declined to 57.7% as of September 30, 2025, compared to 60.0% at June 30, 2025 and an all-time high of 70%. Changes in Funded Balances of Total Loans ($ millions) During the quarter just ended, CIB loans increased $575 million and Indirect RV & Marine increased $213 million while RESG loans declined $862 million. Community Banking declined $85 million due to the transfer of its $183 million Business Aviation Group portfolio into CIB's Equipment Finance Group. We expect this diversification trend to continue in future quarters. $34,000 $32,000 $30,000 $28,000 3 rd Quarter of 2025 $33,005 $575 $213 ( $862 ) ( $85 ) $32,846 $29,969 First Nine Months of 2025 $1,920 $573 $389 ( $5 ) $32,846 $26,000 6/30/25 Balance RESG Community Banking CIB Indirect RV & Marine 9/30/25 Balance 12/31/24 Balance RESG Community Banking CIB Indirect RV & Marine 9/30/25 Balance Changes in Unfunded Loan Commitments ($ millions) Consistent with our strategy of greater portfolio diversification, RESG's percentage of the unfunded loan commitments decreased 6% to 66%, while CIB increased 5% to 26% in the first nine months of 2025. $20,000 $17,500 $15,000 3 rd Quarter of 2025 $18,392 $96 ( $1,209 ) $619 First Nine Months of 2025 $19,079 $697 $17,898 $17,898 $75 ( $1,953 ) 6/30/25 Balance of Unfunded Loan Commitments RESG Community Banking CIB 9/30/25 Balance of Unfunded Loan Commitments 12/31/24 Balance of Unfunded Loan Commitments RESG Community Banking CIB 9/30/25 Balance of Unfunded Loan Commitments handles our largest and most complex loans. It has historically been our most significant growth engine and should contribute meaningfully to growth in the future. RESG provides superior risk-adjusted returns through a disciplined and differentiated business model. RESG's industry leading position reflects the fact that throughout its 22-year history we have been open for business every day, in every market, always pursuing the opportunities, and only the opportunities, that meet our rigorous credit quality standards. Our reputation for expertise, consistency, dependability and execution help us maintain our industry leading position. Total funded $18.95 Billion Total funded & unfunded $30.80 Billion RESG Loans at September 30, 2025 accounted for: 58% of our funded loans 66% of our unfunded loan commitments 61% of our total funded and unfunded loan commitments RESG is always the sole senior secured lender, making RESG Started in 2003, RESG is a nationally recognized industry leader in construction, land & development lending and RESG Business Model Reduces Credit Risk loans the lowest risk position in the capital stack. RESG loans are characterized by low leverage, as reflected in its weighted average loan-to-cost ("LTC") ratio* of 50% and loan-to-value ("LTV") ratio* of 46% at September 30, 2025. RESG loans are primarily for ground-up, new construction of high-quality assets which tend to be the most desirable for sale or leasing. RESG usually works with strong and capable sponsors, including some of the most seasoned and capable developers in the country. RESG loan documents include defensive structures, providing substantial protection to the bank. ﹣ Loans are typically (i) the last dollars to fund project costs Portfolio Statistics - as of September 30, 2025 (ii) and the first to be repaid, providing assurance of project completion and loan repayment. ﹣ Many loans also include some combination of preferred equity and mezzanine debt (all subordinate to our senior secured loan) providing repayment support in addition to that of the sponsor. RESG's "life of loan" focus utilizes thorough underwriting, rigorous economic analysis, stress testing, comprehensive and consistent documentation, precision at closing and life-of-loan asset management by teams of skilled asset managers. *Weighted average; assumes all loans are fully funded; LTV data based on most recent appraisals and utilizing, in most cases, "as stabilized" values for income producing properties. RESG Originations ($ billions) RESG Loan Repayments & Other Activity ($ billions) Q1 Q2 Q3 Q4 Total* FY2020 $1.76 $1.67 $1.40 $1.77 $6.59 FY2021 $1.28 $1.46 $2.21 $2.99 $7.94 FY2022 $3.14 $3.53 $4.35 $2.81 $13.82 FY2023 $1.81 $1.41 $1.95 $2.05 $7.22 FY2024 $1.58 $1.60 $1.23 $1.00 $5.41 FY2025 $1.21 $1.51 $0.70 $3.42 Q1 Q2 Q3 Q4 Total* FY2020 $1.00 $0.69 $0.65 $1.19 $3.54 FY2021 $1.48 $1.68 $1.34 $1.72 $6.22 FY2022 $1.31 $2.34 $1.28 $0.72 $5.65 FY2023 $0.91 $1.03 $1.10 $0.97 $4.01 FY2024 $0.79 $1.84 $1.60 $1.83 $6.06 FY2025 $0.85 $0.95 $2.44 $4.24 RESG loan originations were $0.70 billion in the third quarter and $3.42 billion for the first nine months of 2025. For some time, many sponsors have faced challenges raising equity capital for new projects as capital partners have been cautious due to macroeconomic uncertainty and tight monetary policy. This has restrained new project starts. At the same time, a surge in liquidity available for debt financing has created significant competition for the new deals that do raise equity. The current environment of "too many lenders chasing too few deals" has contributed to our subdued RESG origination volume. We have said for years that origination volume may vary significantly from quarter to quarter and may be impacted by economic conditions, interest rates, competition or other factors. Our reduced level of RESG originations in the quarter just ended reflects the impact of such factors in the current market. We expect a higher origination volume in the final quarter of 2025. Consistent with our guidance, RESG's loan repayments increased to a record $2.44 billion in the quarter just ended bringing the total for the first nine months of 2025 to $4.24 billion. The recent increase in debt financing available for projects has also contributed to RESG repayments. We expect RESG loan repayments will remain elevated in most quarters through 2026. Loan repayments may vary substantially from quarter to quarter based on a variety of factors including interest rate levels and refinancing alternatives. 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. $13.82 $ Total Annual Originations $ Amount Repaid $ Remaining Commitment (funded and unfunded) $3.88 $9.11 $7.94 $7.22 $6.48 $6.59 $0.62 $4.74 $4.94 $5.41 $0.18 $8.97 $9.94 $4.54 $3.42 $6.19 $4.70 $5.23 $3.00 $0.14 $2.05 $0.09 $0.04 $0.29 $3.42 $6.60 $15.00 $14.00 $13.00 $12.00 $11.00 $10.00 ($ billions) $9.00 $8.00 $7.00 $6.00 $5.00 $4.00 $3.00 $2.00 $1.00 $- Pre 2017* 2017 2018 2019 2020 2021 2022 2023 2024 9M 2025 Total Originations / Amount Repaid / Remaining Commitment $ Remaining Commitment $0.14B $0.04B $0.29B $2.05B $3.00B $9.94B $6.60B $5.23B $3.42B $ Amount Funded $0.14B $0.02B $0.27B $1.76B $2.52B $7.82B $4.24B $1.71B $0.38B $ Amount Unfunded $0.00B $0.02B $0.02B $0.29B $0.48B $2.12B $2.36B $3.52B $3.04B RESG repayments in the quarter just ended included significant repayments of older vintage loans. Specifically, during the quarter total commitments (both funded and unfunded) were reduced by $0.49 billion for 2019, $0.12 billion for 2020 originations, $0.63 billion for 2021 originations, $1.25 billion for 2022 originations and $0.30 billion for 2023 originations. * Amounts repaid and total annual originations are not $10,000 Total Commitment by Product Type ($ millions) $9,000 $8,000 Funded Balance Unfunded Commitment Loan-to-Cost* Loan-to-Value* 96% 90% 52% 50% 52% 54% 51% 48% 43% 43% 47% 51% 52% 47% 40% 42% 40% 32% 120% 100% $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 80% LTC & LTV Ratios 60% 40% 20% Multifamily $8.0B (26.1%) Condo $5.0 B (16.3%) Mixed Use** $4.6B (14.9%) Industrial $4.2B (13.6%) Office $4.2B (13.6%) Life Science $3.4B (10.9%) Land $1.1B (3.5%) Hotel $0.3B (1.0%) SF Lots & Homes $0.0B (0.1%) $- 0% Product Type / Total Commitment ($B) / (% of Total Commitment) Data as of September 30, 2025. * LTC and LTV ratios are weighted averages and assume all loans are fully funded. LTV data based on most recent appraisals and utilizing, in most cases, "as stabilized" values for income producing properties. ** Mixed use projects contain multiple property types, none of which individually contribute 75% or more Total Commitment ($ millions) $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $- Miami-Fort Lauderdale-West Palm Beach, FL New York-Newark-Jersey City, NY-NJ-PA San Diego-Carlsbad, CA San Francisco-Oakland-Hayward, CA Dallas-Fort Worth-Arlington, TX Los Angeles-Long Beach-Anaheim, CA Boston-Cambridge-Newton, MA-NH Riverside-San Bernardino-Ontario, CA Atlanta-Sandy Springs-Roswell, GA Denver-Aurora-Lakewood, CO Phoenix-Mesa-Scottsdale, AZ Nashville-Davidson--Murfreesboro--Franklin, TN Washington-Arlington-Alexandria, DC-VA-MD-WV Seattle-Tacoma-Bellevue, WA Tampa-St. Petersburg-Clearwater, FL Chicago-Naperville-Elgin, IL-IN-WI Austin-Round Rock-San Marcos, TX Philadelphia-Camden-Wilmington, PA-NJ-DE-MD Cape Coral-Fort Myers, FL Geographic Area Las Vegas-Henderson-Paradise, NV 18 Savannah, GA North Port-Sarasota-Bradenton, FL Naples-Immokalee-Marco Island, FL San Antonio-New Braunfels, TX Baltimore-Columbia-Towson, MD San Jose-Sunnyvale-Santa Clara, CA Charlotte-Concord-Gastonia, NC-SC Portland-Vancouver-Hillsboro, OR-WA Salt Lake City, UT Provo-Orem, UT Kansas City, MO-KS Milwaukee-Waukesha-West Allis, WI Oxnard-Thousand Oaks-Ventura, CA Columbus, OH Durham-Chapel Hill, NC Reno, NV Oklahoma City, OK Raleigh, NC Sacramento--Roseville--Arden-Arcade, CA Minneapolis-St. Paul-Bloomington, MN-WI Cincinnati, OH-KY-IN El Paso, TX Pittsburgh, PA Houston-The Woodlands-Sugar Land, TX Longview-Kelso, WA Edwards, CO Orlando-Kissimmee-Sanford, FL Bridgeport-Stamford-Norwalk, CT Garfield, CO Grand Rapids-Wyoming, MI Madison, WI Ogden-Clearfield, UT St. Louis, MO-IL LaGrange, GA Laredo, TX Palm Bay-Melbourne-Titusville, FL $1,938 $1,425 $1,408 $1,404 $1,386 $1,199 $1,133 $1,088 $1,062 $1,004 $975 $772 $752 $750 $688 $655 $627 $447 $389 $334 $306 $302 $232 $217 $205 $193 $192 $165 $146 $121 $117 $116 $113 $102 $100 $100 $97 $93 $91 $88 $87 $82 $75 $73 $72 $59 $58 $58 $53 $42 $29 $27 $19 $19 $4,250 RESG's Portfolio Diversification By Geography Top 10 #11-#20 $3,256 RESG's total commitments in each geographic area in which it had loans at September 30, 2025 reflect the national scope and significant geographic diversification in RESG's business. ($ millions) $20,000 No. of Total Funded Commitment Distribution by Size Tranche Loans Funded & Unfunded 100% Funded ($ millions) LTV Ratio* (%) Unfunded ($ millions) LTC Ratio* (%) 53% 50% 51% 48% 42% 46% 46% 46% 45% 45% 90% Total 292 $ 18,945 $ 30,799 $15,000 $0 - $125mm $125+ mm - $250mm $250+ mm - $375mm $375+ mm - $500mm $500+ mm 213 57 14 6 2 $ 8,024 6,057 2,101 1,671 1,092 $ 12,516 10,099 4,070 2,624 1,490 $10,000 80% 70% 60% 50% 40% 5% 8% 13% 41% 33% % of Total Commitment $5,000 30% 20% 10% $- $0 - $125mm $125+ mm - $250mm $250+ mm - $375mm $375+ mm - $500mm 0% $500+ mm Data as of September 30, 2025. * Weighted average; assumes all loans are fully funded; calculation based on total commitment by tranche as a % of total cost and total appraised value of loans within each tranche. LTV data based on most recent appraisals and utilizing, in most cases, "as stabilized" values for income-producing properties. Community Banking accounted for $5.23 billion, or 15.9%, of the funded balance of loans as of September 30, 2025, and included consumer and small business loans, business banking loans, loans originated by our commercial (generalist) lenders, and loans originated by our specialty lending teams in Community Banking, which included our government guaranteed ("GGL"), agricultural (including poultry), affordable housing, middle market CRE ("MMCRE") and homebuilder finance lending teams. Growth in these units is an important part of our broader strategy for portfolio diversification, both in terms of product types and geography. Community Banking Loan Composition * At September 30, 2025 Community Banking Loan Balances $4,974 $5,019 $4,905 $4,975 $5,235 $5,167 $5,316 $5,231 $6,000 $4,997 $5,000 ($ Millions) $4,000 $3,000 $2,000 $1,000 $- 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 Period-End Community Banking Loans (Funded Balance) Business | Generalist 4% 4% 3% 6% 7% 9% 67% MMCRE Agricultural Homebuilder Finance GGL Consumer Affordable Housing CIB continued to achieve excellent growth and enhance portfolio diversification in the quarter just ended. It accounted for $4.47 billion, or 13.6%, of the funded balance of loans as of September 30, 2025, an increase from 11.8% as of June 30, 2025 and 7.4% Portfolio Statistics - as of September 30, 2025 as of September 30, 2024. Total funded $4.47 Billion Total funded & unfunded $8.04 Billion CIB Loans at September 30, 2025 accounted for: 14% of our funded loans 26% of our unfunded closed loans 18% of our total funded and unfunded balances of loans $3,895 $111 $195 $587 $3,009 $799 $684 $2,551 $449 $606 $2,174 $238 $507 $66 $395 $495 $233 $812 $587 $377 $589 $2,081 $1,362 $1,428 $1,596 $1,901 $4,470 $5,000 Period-End Loan Balance ($ Millions) $4,500 $4,000 $3,500 $3,000 $2,500 $2,000 $1,500 $1,000 $500 $- 3Q24 4Q24 1Q25 2Q25 3Q25 Targeting Stable & Predictable Industries Proven Client Base - CIB is targeting C&I opportunities in industries that have: steady and easily projectable cash flow historically lower probabilities of default ("PD") built on conservative structuring lower loss given default ("LGD") metrics Defensive Leverage & Structures - CIB is targeting high credit quality clients, with low leverage and favorable repayment capacity: Proven management teams Senior lien positions Meaningful equity in the capital structure Strong Sponsors (including Private Equity/Family Offices) Properly margined with secondary sources of repayment Lower Risk Industries - Core focus on proven, high-quality, lower-risk industries, and avoiding those more susceptible to exacerbated movements in economic and business cycles such as automotive, discretionary-focused retail, venture-capital and early-stage technology, and other highly cyclical sectors. Impactful Opportunities - CIB is focused on originating direct (single lender), club (two banks with 100% voting rights), and syndicated relationships focused on the Admin Agent or Joint Lead Arranger roles. Strategic Relationships - Focus is to develop C&I relationships where we can drive the loan structure, provide quality services to clients, and reap the rewards of enhanced cross-selling (Deposits, Treasury Management Solutions, Capital Markets, Derivative Instrument, etc.). ABLG CBSF LFG Fund Finance EFG NRG Indirect RV & Marine lending ("ILD") is a nationwide business that has allowed us to originate consumer loans while maintaining our conservative credit-quality standards. $4,200 $3,987 $3,530 $3,627 $3,738 $3,320 $3,063 $2,831 $2,859 $1,969 $2,105 $1,803 $1,699 $1,754 $1,573 $1,412 $1,316 $1,331 $2,019 $2,095 $1,514 $1,528 $1,651 $1,747 $1,831 $1,873 $1,935 Marine RV Period-End Loan Balance ($ Millions) $4,500 $4,000 $3,500 $3,000 $2,500 $2,000 $1,500 $1,000 $500 $- 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 ILD Trends This portfolio accounted for 12.8% of the funded balance of loans as of September 30, 2025. Our objective is to maintain this portfolio within a range of 10% to 15% of our total loans. As of September 30, 2025, the indirect portfolio had a 30+ day delinquency ratio of 0.22%. For the third quarter and first nine months of 2025, our annualized net charge-off ratio for the indirect portfolio was 0.30% and 0.33%, respectively. Prudent ACL Build While Our Net Charge-off Ratio Has Remained Below The Industry Average 23 In our 28 years as a public company, our net charge-off ratio has outperformed the industry's net charge-off ratio every year and has averaged only about one-third of the industry's net charge-off ratio. (All data annualized where appropriate) 1.75 1.55 1.29 1.10 0.97 0.83 0.78 0.57 0.59 0.53 0.59 0.56 0.49 0.36 0.17 0.26 0.24 0.22 0.20 0.59 0.39 0.24 0.12 0.73 0.69 0.68 0.64 0.45 0.49 0.49 0.46 0.44 0.47 0.50 0.48 0.52 0.50 0.52 0.33 0.26 0.25 0.27 0.26 0.10 0.11 0.16 0.17 0.07 0.07 0.34 0.11 0.16 0.06 0.13 0.20 0.04 Net Charge-Off Ratio (%) 2.52 2.55 9M2025 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 1997 Bank OZK FDIC Insured Institutions * We have continued our long track record of having a net charge-off ratio well below the industry average. Our annualized net charge-off ratios were 0.41% for the quarter just ended and 0.26% for the first nine months of 2025, consistent with our previous guidance. We continue to expect that our full-year 2025 net charge-off ratio will exceed 2024's 20-bps ratio, but remain below the industry average. Our net charge-off ratio may vary significantly from quarter to quarter. We have built our portfolio with the goal that it will perform well in adverse conditions, and that discipline has been evident in our recent results through the pandemic, the Fed's increasing interest rates, higher rates of inflation leading to "higher for longer" interest rate policy, and numerous other sources of macroeconomic, political and geo-political turbulence. Notwithstanding the considerable uncertainty regarding the macroeconomic and interest rate environment, we expect that our net charge-offs for the full year of 2026 will once again compare favorably to industry metrics. * Data for all FDIC insured institutions from the FDIC Quarterly Banking Profile, last updated second quarter 2025. Annualized when appropriate. As of September 30, 2025, our ACL had increased to $679.6 million, or 1.34% of loans and unfunded loan commitments. This consisted of our allowance for loan losses ("ALL") at $532.3 million, or 1.62% of loans, and our reserve for losses on unfunded loan commitments at $147.3 million, or 0.82% of unfunded loan commitments. In percentage terms, over those 13 quarters, our ACL has increased from 0.83% to 1.34% of loans and unfunded loan commitments at September 30, 2025. We believe this ACL build has been a prudent and appropriate response to the shifting mix of risk factors that have driven the challenging and uncertain macroeconomic environment over those 13 quarters. ACL Period End Balances & Qtly. Growth ($ millions) $750 $700 $650 $600 $550 $500 $450 $400 $350 $300 $250 $200 ACL at 6/30/22 1.34% 1.26% 1.28% 1.30% 1.23% $680 1.19% $14 1.11% $27 1.07% $19 1.00% $20 $25 0.95% 0.92% $37 0.83% 0.85% 0.87% $36 $40 $35 $33 $300 $28 $30 $36 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 ACL at 9/30/25 Total ACL at Period End ACL Build During Period Total ACL % at Period End 1.40% ACL % of Total Loans + Unfunded Commitment 1.30% 1.20% 1.10% 1.00% 0.90% 0.80% 0.70% 0.60% 0.50% We have seen a reasonably well-contained migration of risk ratings and credit quality metrics since the Federal Reserve initiated its most recent tightening cycle. Risk Categories and Asset Quality Metrics ($ millions) ($ millions) During the third quarter, we had a modest net reduction in total classified and criticized assets as summarized below. The significant changes included (i) liquidation of our largest foreclosed asset with net proceeds equal to its carrying value; (ii) migration of one RESG credit from substandard accrual to substandard non-accrual with a partial charge-off; (iii) migration of one RESG credit from special mention to substandard non-accrual with a partial charge-off; and (iv) migration of one RESG credit from special mention to substandard accrual. An update on our three largest foreclosed assets was included in our Management Comments dated October 16, 2025. Classified and Criticized Assets ($ millions) At September 30, 2025, our ratio of loans 30 or more days past due to total loans was 0.14% compared to 0.15% at June 30, 2025 and 0.14% at September 30, 2024; our ratio of nonperforming loans to total loans was 0.46% compared to 0.18% at June 30, 2025 and 0.60% at September 30, 2024; and our ratio of nonperforming assets to total assets was 0.55% compared to 0.53% at June 30, 2025 and 0.68% at September 30, 2024. As of 9/30/24 12/31/24 3/31/25 6/30/25 9/30/25 Loans: Pass $ 28,217 $ 29,057 $ 30,426 $ 32,132 $ 31,968 Special Mention 693 654 455 631 365 Substandard Accrual 132 126 164 185 363 Substandard Non-accrual 176 131 63 59 150 Total Loans $ 29,218 $ 29,969 $ 31,108 $ 33,005 $ 32,846 Foreclosed Assets $ 78 $ 69 $ 151 $ 160 $ 79 Loans Past Due $ 40 $ 50 $ 45 $ 50 $ 46 6/30/25 9/30/25 Change Loans: Special Mention $ 631 $ 365 $ (266) Substandard accrual 185 363 178 Substandard non-accrual 59 150 91 Foreclosed Assets 160 79 (81) Total Classified & Criticized $ 1,035 $ 957 $ (78) Loans Past Due % of Total Loans Nonperforming Loans Nonperforming Loans % of Total Loans Nonperforming Assets Nonperforming Assets % of Total Assets 0.14% 0.17% 0.14% 0.15% 0.14% 176 $ 131 $ 63 $ 59 $ 150 0.60% 0.44% 0.20% 0.18% 0.46% 254 $ 201 $ 214 $ 218 $ 228 0.68% 0.53% 0.55% 0.53% 0.55% $ $ The loan-to-value ("LTV") metrics on each of the 292 credits within the RESG portfolio as of September 30, 2025, are illustrated below. Assuming every RESG loan is fully funded, the weighted average LTC for the RESG portfolio was 50% and the weighted average LTV was 46% as of September 30, 2025. Bubble Size Reflects Total Funded and Unfunded Commitment Amount As of September 30, 2025, the RESG portfolio had three substandard accrual loans and two substandard non-accrual loans, and updates on these five credits were included in our Management Comments dated October 16, 2025. Overview of Our Appraisals Services Group An independent, second line function reporting to the Chief Risk Officer. Team reviewing RESG loans consists of certified appraisers with Member of the Appraisal Institute ("MAI") designations. Responsible for ordering appraisals from qualified independent, external appraisers. Reviews and approves appraisals to ensure compliance with Bank OZK Policy, regulatory standards and Uniform Standards of Professional Appraisal Practice. (Actuals) $15.0 $13.5 $10.0 $8.4 $5.0 $4.1 $4.2 $5. 1 $4.5 $6.4 $5.8 $7.0 $7.0 $3.8 $4.3 $4.0 $- Enhancements # of Index Floors ▲ : 200 # of Index Floors ▼ : 1 # of Spreads ▲ : 11 # of Spreads ▼ : 5 Modification Fees Collected 70 60 50 40 30 20 10 - 58 52 49 50 37 34 39 41 41 41 29 34 36 $90.0 $80.0 $70.0 $60.0 $50.0 $40.0 $30.0 $20.0 $10.0 $- $80.5 $54.6 $53.2 $52.4 $39.0 $30.2 $21.7 $11.2 $3.3 $12.3 $8.8 $8.1 $8.5 Unscheduled Paydowns # of Modifications & Extensions $140.0 $120.0 $100.0 $80.0 $60.0 $40.0 $20.0 $- $121.1 $125.0 $86.1 $55.8 $67.2 $35.9 $30.7 $46.1 $44. $69.6 $64.1 7 $38.8 $24.0 $90.0 $80.0 $70.0 $60.0 $50.0 $40.0 $30.0 $20.0 $10.0 $- $86.6 $62.1 $41.8 $10.6 $- $4.4 $7.7 $8.6 $14.2 $4.2 $- $16.1 $27.2 Reductions in Unfunded Amount Additional Reserve Deposits 3Q22 3Q22 4Q22 4Q22 1Q23 1Q23 2Q23 2Q23 3Q23 3Q23 4Q23 4Q23 1Q24 1Q24 2Q24 2Q24 3Q24 3Q24 4Q24 4Q24 1Q25 1Q25 2Q25 2Q25 3Q25 3Q25 3Q22 3Q22 4Q22 4Q22 1Q23 1Q23 2Q23 2Q23 3Q23 3Q23 4Q23 1Q24 4Q23 1Q24 2Q24 2Q24 3Q24 3Q24 4Q24 4Q24 1Q25 1Q25 2Q25 2Q25 3Q25 3Q25 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 An important element of our business model is to structure loans so that sponsors and their capital partners are highly incentivized to support the loans, even in challenging times. To achieve this, we obtain sizable equity investments relative to our low leverage loans, assuring that sponsors/capital partners are likely to have too much invested to walk away. Additionally, we focus on loans secured by high quality assets that have good long-term prospects, which motivates sponsors to stay engaged, even if sales or leasing take more time than expected. The effectiveness of our approach is evident in our results since the Federal Reserve started increasing the Fed funds target rate. We have seen significant support by sponsors/capital partners for our RESG loans, evidenced by the $1.2 billion of total additional equity contributions ($809 million of additional reserve deposits and $384 million of unscheduled paydowns) received related to the 541 modifications/extensions. Additionally, we enhanced our floor rates and spreads on 200 loans and 11 loans, respectively, while granting 1 floor reduction and 5 spread reductions over the last 13 quarters. High Performing Regional Branch Network Provides Diverse and Growing Deposit Base Substantial and Diverse Sources of Liquidity Our Favorable Efficiency Ratio Remains Among the Best in the Industry Our Strong Capital Provides Significant Optionality and Shareholder Returns 29 Because of the substantial "retail" nature of our deposit base, 79% of our deposits are either insured (64% at September 30, 2025) or, in the case of public funds and certain other deposits, collateralized (15% at September 30, 2025). As of September 30, 2025, our average account balance was approximately $49,000. The diversity of our deposit base is an important factor in the demonstrated stability of our deposits. Deposit Composition Overview ($ millions) Period Ended 9/30/2024 12/31/2024 3/31/2025 6/30/2025 9/30/2025 Noninterest Bearing $ 3,855 12.6% $ 3,770 12.1% $ 3,868 12.1% $ 3,836 11.4% $ 3,902 11.5% Consumer and Commercial Interest Bearing: Consumer - Non-time 2,854 9.3% 2,983 9.6% 3,177 10.0% 3,145 9.4% 3,190 9.4% Consumer - Time 13,133 43.0% 13,447 43.3% 13,940 43.7% 14,746 44.0% 15,313 45.1% Commercial - Non-time 2,819 9.2% 2,728 8.8% 2,601 8.1% 3,071 9.2% 3,210 9.4% Commercial - Time 972 3.2% 970 3.1% 914 2.9% 981 2.9% 1,016 3.0% Public Funds 3,629 11.9% 3,964 12.8% 4,369 13.7% 4,403 13.1% 4,249 12.5% Brokered 2,716 8.9% 2,611 8.4% 2,562 8.0% 2,850 8.5% 2,650 7.8% Reciprocal 594 1.9% 569 1.9% 495 1.5% 490 1.5% 454 1.3% Total $ 30,572 100.0% $ 31,043 100.0% $ 31,926 100.0% $ 33,522 100.0% $ 33,985 100.0% Primary and Secondary Liquidity Sources: We maintain substantial and diverse sources of primary and secondary liquidity. At September 30, 2025 these sources totaled $15.6 billion, consisting of $3.1 billion of cash and cash equivalents, $1.9 billion of unpledged investment securities, $8.8 billion of available FHLB borrowing capacity, $1.2 billion of available unsecured lines of credit and $0.6 billion of Fed discount window borrowing availability. As shown below, in the quarter just ended, our efficiency ratio was 35.1%. Efficiency Ratio (%) vs. the Industry 66.0% 55.8% 58.7% 56.6% 56.6% 57.4% 56.2% 55.6% 32.6% 35.3% 32.6% 32.7% 32.9% 33.7% 35.6% 35.5% 35.1% 80.0% 70.0% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 Bank OZK FDIC Insured Institutions* We have consistently been among the nation's most efficient banks, having ranked in the top decile of the industry for 23 consecutive years.** * Data for all FDIC insured institutions from the FDIC Quarterly Banking Profile, last updated second quarter 2025. ** Data from S&P Global CapIQ.