OZK
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Earnings documents stored for OZK.
Investor releaseQuarter not tagged2026-08-20Why Is Bank OZK (OZK) Down 2.9% Since Last Earnings Report?
Zacks
Why Is Bank OZK (OZK) Down 2.9% Since Last Earnings Report?
It has been about a month since the last earnings report for Bank OZK (OZK). Shares have lost about 2.9% in that time frame, underperforming the S&P 500. Will the recent negative trend continue leading up to its next earnings release, or is Bank OZK due for a breakout? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent drivers for Bank OZK before we dive into how investors and analysts have reacted as of late. Bank OZK reported second-quarter 2026 earnings per share of $1.49, which surpassed the Zacks Consensus Estimate of $1.46. However, the bottom line declined 5.7% year over year from $1.58.Results benefited from higher non-interest income and deposit balances. Progress in the strategic diversification of the loan portfolio also provided support. However, a higher provision for credit losses, rising expenses, lower net interest income (NII) and weakening credit quality were headwinds. Net income available to common shareholders was $163.3 million, down 8.7% from the year-ago quarter’s $178.9 million. Our estimate for the metric was $158.3 million. Net revenues were $430.02 million, up 0.5% year over year. The top line missed the Zacks Consensus Estimate of $432.02 million.NII was $392.1 million, down 1.2% year over year. Our estimate for the metric was $397.3 million.The net interest margin (NIM), on a fully-taxable-equivalent basis, contracted 12 basis points year over year to 4.24%. Our estimate for NIM was 4.13%.Non-interest income was $37.9 million, up 21% from the year-ago quarter. The increase reflected growth in deposit-related fees, loan-related fees and other income. Our estimate for the metric was $32.7 million.Non-interest expenses were $170.6 million, up 11.4% from the prior-year quarter. The increase was due to higher salaries and employee benefits, net occupancy and equipment costs and other operating expenses. We expected this metric to be $166.4 million.Bank OZK’s efficiency ratio was 39.16%, up from 35.46% in the year-ago quarter, indicating reduced profitability. As of June 30, 2026, total loans were $32.6 billion, down 1.3% from the prior quarter. Total deposits were $34 billion, reflecting increases of 0.7% sequentially. Our estimates for total loans and deposits were $33.7 billion and $34.7 billion, respectively. Net charge-offs to average total loans grew to 0.69% from 0.10…Read full documentShow less
It has been about a month since the last earnings report for Bank OZK (OZK). Shares have lost about 2.9% in that time frame, underperforming the S&P 500. Will the recent negative trend continue leading up to its next earnings release, or is Bank OZK due for a breakout? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent drivers for Bank OZK before we dive into how investors and analysts have reacted as of late. Bank OZK reported second-quarter 2026 earnings per share of $1.49, which surpassed the Zacks Consensus Estimate of $1.46. However, the bottom line declined 5.7% year over year from $1.58.Results benefited from higher non-interest income and deposit balances. Progress in the strategic diversification of the loan portfolio also provided support. However, a higher provision for credit losses, rising expenses, lower net interest income (NII) and weakening credit quality were headwinds. Net income available to common shareholders was $163.3 million, down 8.7% from the year-ago quarter’s $178.9 million. Our estimate for the metric was $158.3 million. Net revenues were $430.02 million, up 0.5% year over year. The top line missed the Zacks Consensus Estimate of $432.02 million.NII was $392.1 million, down 1.2% year over year. Our estimate for the metric was $397.3 million.The net interest margin (NIM), on a fully-taxable-equivalent basis, contracted 12 basis points year over year to 4.24%. Our estimate for NIM was 4.13%.Non-interest income was $37.9 million, up 21% from the year-ago quarter. The increase reflected growth in deposit-related fees, loan-related fees and other income. Our estimate for the metric was $32.7 million.Non-interest expenses were $170.6 million, up 11.4% from the prior-year quarter. The increase was due to higher salaries and employee benefits, net occupancy and equipment costs and other operating expenses. We expected this metric to be $166.4 million.Bank OZK’s efficiency ratio was 39.16%, up from 35.46% in the year-ago quarter, indicating reduced profitability. As of June 30, 2026, total loans were $32.6 billion, down 1.3% from the prior quarter. Total deposits were $34 billion, reflecting increases of 0.7% sequentially. Our estimates for total loans and deposits were $33.7 billion and $34.7 billion, respectively. Net charge-offs to average total loans grew to 0.69% from 0.10% in the year-ago quarter. Provision for credit losses was $45.6 million, rising 29.5% year over year. We projected provisions of $52.3 million.The ratio of non-performing loans to total loans was 0.92% as of June 30, 2026, up from 0.18% a year ago. The non-performing assets-to-total assets ratio increased to 1.42% from 0.53%. At the end of the second quarter, return on average assets was 1.60%, down from 1.81% in the year-earlier quarter. Return on average common equity also declined to 11.14% from 12.98%. During the second quarter, Bank OZK repurchased 0.33 million shares for $15.5 million. This was part of the company’s June 2025 share buyback program. Since the earnings release, investors have witnessed a downward trend in fresh estimates. The consensus estimate has shifted -5.74% due to these changes. Currently, Bank OZK has a poor Growth Score of F, however its Momentum Score is doing a bit better with a D. However, the stock was allocated a score of B on the value side, putting it in the top 40% for value investors. Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Bank OZK has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Bank OZK (OZK) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research
Investor releaseQuarter not tagged2026-07-23Bank OZK (OZK) Could Be 4% Undervalued As Earnings Put Recent Weakness In Context
Simply Wall St.
Bank OZK (OZK) Could Be 4% Undervalued As Earnings Put Recent Weakness In Context
Find winning stocks in any market cycle. Join 7 million investors using Simply Wall St's investing ideas for FREE. Bank OZK (OZK) just reported second quarter 2026 results, giving you fresh data on earnings, interest income and loan trends to weigh against the stock's recent performance. See our latest analysis for Bank OZK. The latest earnings release landed alongside some cooling momentum in Bank OZK's stock, with a 1-day share price return of a 1.67% decline and a 7-day share price return of a 5.59% decline, while the 5-year total shareholder return of 45.03% points to a much stronger long term picture. If recent banking results have you rethinking where growth might come from next, this is a useful moment to scan opportunities across 17 top founder-led companies With Bank OZK shares slipping over the past week yet still carrying a solid multi year return, the issue now is whether the current pullback offers enough value or if it pays to wait for a cheaper entry as the numbers are unpacked next. With Bank OZK closing at $50.12 against a narrative fair value of about $52.33, the current setup frames a modest valuation gap that depends on how future growth and profitability develop. Read the complete narrative. Want to understand why this growth story only translates into a mid single digit discount to fair value, not a large gap? The narrative is based on measured revenue expansion, tempered profit margins and a future earnings multiple that remains below the wider US banks peer group. Result: Fair Value of $52.33 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, Bank OZK’s heavy commercial real estate exposure and higher cost base from expansion plans mean that any credit stress or slower loan growth could quickly challenge this undervalued narrative. Find out about the key risks to this Bank OZK narrative. If this Bank OZK story sounds cautiously optimistic, take a moment to review the numbers yourself and stress test the narrative. Then weigh those insights against the 3 key rewards Before you move on, give yourself a better shot at spotting the next opportunity by scanning a few focused stock lists instead of stopping at Bank OZK. Target potential mispricings by reviewing companies flagged as high quality and undervalued through the 38 high quality undervalued stocks. Prioritize durability by checki…Read full documentShow less
Find winning stocks in any market cycle. Join 7 million investors using Simply Wall St's investing ideas for FREE. Bank OZK (OZK) just reported second quarter 2026 results, giving you fresh data on earnings, interest income and loan trends to weigh against the stock's recent performance. See our latest analysis for Bank OZK. The latest earnings release landed alongside some cooling momentum in Bank OZK's stock, with a 1-day share price return of a 1.67% decline and a 7-day share price return of a 5.59% decline, while the 5-year total shareholder return of 45.03% points to a much stronger long term picture. If recent banking results have you rethinking where growth might come from next, this is a useful moment to scan opportunities across 17 top founder-led companies With Bank OZK shares slipping over the past week yet still carrying a solid multi year return, the issue now is whether the current pullback offers enough value or if it pays to wait for a cheaper entry as the numbers are unpacked next. With Bank OZK closing at $50.12 against a narrative fair value of about $52.33, the current setup frames a modest valuation gap that depends on how future growth and profitability develop. Read the complete narrative. Want to understand why this growth story only translates into a mid single digit discount to fair value, not a large gap? The narrative is based on measured revenue expansion, tempered profit margins and a future earnings multiple that remains below the wider US banks peer group. Result: Fair Value of $52.33 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, Bank OZK’s heavy commercial real estate exposure and higher cost base from expansion plans mean that any credit stress or slower loan growth could quickly challenge this undervalued narrative. Find out about the key risks to this Bank OZK narrative. If this Bank OZK story sounds cautiously optimistic, take a moment to review the numbers yourself and stress test the narrative. Then weigh those insights against the 3 key rewards Before you move on, give yourself a better shot at spotting the next opportunity by scanning a few focused stock lists instead of stopping at Bank OZK. Target potential mispricings by reviewing companies flagged as high quality and undervalued through the 38 high quality undervalued stocks. Prioritize durability by checking stocks that pair robust balance sheets with solid fundamentals using the solid balance sheet and fundamentals stocks screener (48 results). Seek out fresh opportunities by tracking lesser known businesses with strong metrics in the screener containing 20 high quality undiscovered gems. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include OZK. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]
Investor releaseQuarter not tagged2026-07-22Bank OZK (OZK) Q2 2026 Earnings Call Highlights: Strong CIB Growth and Strategic Buybacks Amid ...
GuruFocus.com
Bank OZK (OZK) Q2 2026 Earnings Call Highlights: Strong CIB Growth and Strategic Buybacks Amid ...
This article first appeared on GuruFocus. Release Date: July 22, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Bank OZK (NASDAQ:OZK) is experiencing strong growth in its Corporate & Institutional Banking (CIB) division, which is diversifying its loan portfolio and reducing concentration in commercial real estate (CRE). The bank has successfully launched several new business lines within CIB, contributing to quarter-over-quarter and year-over-year growth. CIB's growth is enhancing franchise value by offering diversified business segments and cross-selling opportunities, including treasury management and private wealth management. The bank's net interest margin improved by 4 basis points in the second quarter, despite high loan payoffs early in the quarter. Bank OZK (NASDAQ:OZK) has a strong buyback program, having repurchased $175 million worth of shares at an average price below tangible book value, which was accretive to both tangible book value and earnings per share. The bank is facing challenges in originating new volume in its Real Estate Specialties Group (RESG) due to competitive pressures and market conditions. Elevated repayments in the RESG portfolio are expected to continue, impacting average earning assets and potentially net interest income. There is a competitive deposit gathering environment, which may lead to increased costs for interest-bearing deposits. The bank has seen an increase in special mention loans, although management is optimistic about resolving some of these issues. Loan loss reserves are being adjusted as charge-offs are realized, reflecting ongoing challenges in certain sectors like life sciences and office real estate. Warning! GuruFocus has detected 7 Warning Sign with FFBC. Is OZK fairly valued? Test your thesis with our free DCF calculator. Q: Can you provide an update on the Corporate and Institutional Banking (CIB) division and its impact on loan loss reserves and fees? A: George Gleason, Chairman and CEO, emphasized the importance of CIB as a growing part of Bank OZK's franchise. Jake Munn, President of CIB, highlighted the diversification within CIB, which includes over seven business lines. This diversification helps manage credit risk and contributes to fee income. The CIB division is expected to enhance long-term franchise value through its diversified loa…Read full documentShow less
This article first appeared on GuruFocus. Release Date: July 22, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Bank OZK (NASDAQ:OZK) is experiencing strong growth in its Corporate & Institutional Banking (CIB) division, which is diversifying its loan portfolio and reducing concentration in commercial real estate (CRE). The bank has successfully launched several new business lines within CIB, contributing to quarter-over-quarter and year-over-year growth. CIB's growth is enhancing franchise value by offering diversified business segments and cross-selling opportunities, including treasury management and private wealth management. The bank's net interest margin improved by 4 basis points in the second quarter, despite high loan payoffs early in the quarter. Bank OZK (NASDAQ:OZK) has a strong buyback program, having repurchased $175 million worth of shares at an average price below tangible book value, which was accretive to both tangible book value and earnings per share. The bank is facing challenges in originating new volume in its Real Estate Specialties Group (RESG) due to competitive pressures and market conditions. Elevated repayments in the RESG portfolio are expected to continue, impacting average earning assets and potentially net interest income. There is a competitive deposit gathering environment, which may lead to increased costs for interest-bearing deposits. The bank has seen an increase in special mention loans, although management is optimistic about resolving some of these issues. Loan loss reserves are being adjusted as charge-offs are realized, reflecting ongoing challenges in certain sectors like life sciences and office real estate. Warning! GuruFocus has detected 7 Warning Sign with FFBC. Is OZK fairly valued? Test your thesis with our free DCF calculator. Q: Can you provide an update on the Corporate and Institutional Banking (CIB) division and its impact on loan loss reserves and fees? A: George Gleason, Chairman and CEO, emphasized the importance of CIB as a growing part of Bank OZK's franchise. Jake Munn, President of CIB, highlighted the diversification within CIB, which includes over seven business lines. This diversification helps manage credit risk and contributes to fee income. The CIB division is expected to enhance long-term franchise value through its diversified loan portfolio and relationship-focused approach. Q: What is the status of the legacy Real Estate Specialties Group (RESG) book, particularly the IQHQ property? A: George Gleason mentioned ongoing discussions for a multiyear extension and recapitalization of the IQHQ project. The conversations with the sponsor and mezzanine lender are constructive, and more details are expected in the coming months. The focus remains on engaging sponsors and resolving projects efficiently. Q: Can you elaborate on the elevated RESG repayments and expectations for loan growth? A: George Gleason noted that RESG repayments were high in the second quarter, consistent with the record origination year of 2022. While repayments are expected to remain elevated, they may taper off slightly next year. The bank maintains guidance for mid-single-digit loan growth for the full year, with expectations for improved loan growth in the latter half of the year. Q: How are you managing net interest income (NII) given the current interest rate environment and payoff activity? A: George Gleason explained that the changes in NII are primarily due to the timing of loan payoffs, which affected average earning assets. The bank anticipated a more linear growth pattern but faced challenges due to early payoffs. Despite this, the bank improved its net interest margin by 4 basis points in the second quarter. Q: What trends are you seeing in your life science portfolio, and how does this impact your reserve levels? A: George Gleason stated that the life science portfolio has been challenging, but there is positive leasing activity, including AI and technology tenants. The bank took a charge-off on a less desirable asset, improving the portfolio's quality. Tim Hicks, CFO, added that the bank has been reducing its allowance for credit losses as charge-offs are realized, reflecting a cautious approach to reserve management. For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Investor releaseQuarter not tagged2026-07-22Bank OZK Q2 Earnings Beat Estimates on Higher Fee Income, Shares Fall
Zacks
Bank OZK Q2 Earnings Beat Estimates on Higher Fee Income, Shares Fall
Bank OZK OZK reported second-quarter 2026 earnings per share (EPS) of $1.49, which surpassed the Zacks Consensus Estimate of $1.46. However, the bottom line declined 5.7% year over year from $1.58. Results benefited from higher non-interest income and deposit balances. Progress in the strategic diversification of the loan portfolio also provided support. However, a higher provision for credit losses, rising expenses, lower net interest income (NII) and weakening credit quality were headwinds. Given the concern, OZK shares lost nearly 1.3% during yesterday's trading session. Net income available to common shareholders was $163.3 million, down 8.7% from the year-ago quarter’s $178.9 million. Our estimate for the metric was $158.3 million. Net revenues were $430.02 million, up 0.5% year over year. The top line missed the Zacks Consensus Estimate of $432.02 million. NII was $392.1 million, down 1.2% year over year. Our estimate for the metric was $397.3 million. The net interest margin (NIM), on a fully-taxable-equivalent basis, contracted 12 basis points year over year to 4.24%. Our estimate for NIM was 4.13%. Non-interest income was $37.9 million, up 21% from the year-ago quarter. The increase reflected growth in deposit-related fees, loan-related fees and other income. Our estimate for the metric was $32.7 million. Non-interest expenses were $170.6 million, up 11.4% from the prior-year quarter. The increase was due to higher salaries and employee benefits, net occupancy and equipment costs and other operating expenses. We expected this metric to be $166.4 million. Bank OZK’s efficiency ratio was 39.16%, up from 35.46% in the year-ago quarter, indicating reduced profitability. As of June 30, 2026, total loans were $32.6 billion, down 1.3% from the prior quarter. Total deposits were $34 billion, reflecting increases of 0.7% sequentially. Our estimates for total loans and deposits were $33.7 billion and $34.7 billion, respectively. Net charge-offs to average total loans grew to 0.69% from 0.10% in the year-ago quarter. Provision for credit losses was $45.6 million, rising 29.5% year over year. We projected provisions of $52.3 million. The ratio of non-performing loans to total loans was 0.92% as of June 30, 2026, up from 0.18% a year ago. The non-performing assets-to-total assets ratio increased to 1.42% from 0.53%. At the end of the second quarter, return on av…Read full documentShow less
Bank OZK OZK reported second-quarter 2026 earnings per share (EPS) of $1.49, which surpassed the Zacks Consensus Estimate of $1.46. However, the bottom line declined 5.7% year over year from $1.58. Results benefited from higher non-interest income and deposit balances. Progress in the strategic diversification of the loan portfolio also provided support. However, a higher provision for credit losses, rising expenses, lower net interest income (NII) and weakening credit quality were headwinds. Given the concern, OZK shares lost nearly 1.3% during yesterday's trading session. Net income available to common shareholders was $163.3 million, down 8.7% from the year-ago quarter’s $178.9 million. Our estimate for the metric was $158.3 million. Net revenues were $430.02 million, up 0.5% year over year. The top line missed the Zacks Consensus Estimate of $432.02 million. NII was $392.1 million, down 1.2% year over year. Our estimate for the metric was $397.3 million. The net interest margin (NIM), on a fully-taxable-equivalent basis, contracted 12 basis points year over year to 4.24%. Our estimate for NIM was 4.13%. Non-interest income was $37.9 million, up 21% from the year-ago quarter. The increase reflected growth in deposit-related fees, loan-related fees and other income. Our estimate for the metric was $32.7 million. Non-interest expenses were $170.6 million, up 11.4% from the prior-year quarter. The increase was due to higher salaries and employee benefits, net occupancy and equipment costs and other operating expenses. We expected this metric to be $166.4 million. Bank OZK’s efficiency ratio was 39.16%, up from 35.46% in the year-ago quarter, indicating reduced profitability. As of June 30, 2026, total loans were $32.6 billion, down 1.3% from the prior quarter. Total deposits were $34 billion, reflecting increases of 0.7% sequentially. Our estimates for total loans and deposits were $33.7 billion and $34.7 billion, respectively. Net charge-offs to average total loans grew to 0.69% from 0.10% in the year-ago quarter. Provision for credit losses was $45.6 million, rising 29.5% year over year. We projected provisions of $52.3 million. The ratio of non-performing loans to total loans was 0.92% as of June 30, 2026, up from 0.18% a year ago. The non-performing assets-to-total assets ratio increased to 1.42% from 0.53%. At the end of the second quarter, return on average assets was 1.60%, down from 1.81% in the year-earlier quarter. Return on average common equity also declined to 11.14% from 12.98%. During the second quarter, the company authorized a new $200 million share repurchase program through July 1, 2027, replacing the previous $200 million authorization announced in June 2025. Bank OZK also increased its quarterly common stock dividend by 9.3% year over year to 47 cents per share, marking its 64th consecutive quarterly dividend increase. Bank OZK continues to benefit from strong growth in non-interest income, record deposit balances and ongoing diversification of its loan portfolio, particularly through the expansion of its Corporate & Institutional Banking business. Management also remains optimistic about achieving stronger loan growth over the long term as diversification efforts continue. However, elevated operating expenses, higher provisions, declining NII and deteriorating asset quality remain key headwinds. Bank OZK price-consensus-eps-surprise-chart | Bank OZK Quote The company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. First Horizon Corporation FHN posted second-quarter 2026 earnings per share of 54 cents, surpassing the Zacks Consensus Estimate of 52 cents. This compares favorably with 45 cents in the year-ago quarter. FHN’s results benefited from higher NII and non-interest income, along with a lower provision for credit losses. Higher loan and deposit balances also provided support. However, rising expenses and weaker capital ratios were headwinds. Citizens Financial Group CFG reported second-quarter 2026 earnings per share of $1.30, which surpassed the Zacks Consensus Estimate of $1.25. The metric rose 41% from the year-ago quarter. CFG’s results benefited from a rise in NII and non-interest income. Growth in loan and deposit balances and an improvement in credit quality were also encouraging. However, a rise in expenses and a weaker capital position were major headwinds. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Bank OZK (OZK) : Free Stock Analysis Report First Horizon Corporation (FHN) : Free Stock Analysis Report Citizens Financial Group, Inc. (CFG) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research
Investor releaseQuarter not tagged2026-07-22Bank OZK Q2 Earnings Call Highlights
MarketBeat
Bank OZK Q2 Earnings Call Highlights
Interested in Bank OZK? Here are five stocks we like better. Bank OZK is pushing to diversify its loan book, with fast-growing corporate and institutional banking helping offset elevated repayments in its real estate specialties group. Management said CIB is becoming a major franchise driver and is being expanded across multiple business lines. RESG repayments remain unusually high and are expected to stay elevated through 2026 and into 2027, though management still expects mid-single-digit loan growth for the full year. Executives said the repayment surge reflects the natural runoff of a strong 2022 origination vintage. Credit quality and reserves remain a focus, but management said recent special mention loan increases may improve over the next few quarters and that prior reserve builds have helped absorb recent charge-offs. The bank also reiterated that real estate concentration is steadily declining and should continue to improve into 2027. 3 high-yielding, small banks to buy on the dip Bank OZK (NASDAQ:OZK) executives used the company’s second-quarter 2026 earnings call to emphasize the bank’s ongoing shift toward a more diversified loan portfolio, with rapid growth in corporate and institutional banking helping offset elevated repayments in its real estate specialties group. Chairman and CEO George Gleason said the corporate and institutional banking, or CIB, business is “a very important and rapidly growing and developing part” of the franchise. He said the bank is investing in the unit and hiring experienced leadership as it seeks to reduce concentration in commercial real estate and the real estate specialties group, or RESG. → Buyback Boom: These 3 Companies Are Betting Billions on Their Own Stocks “We want to make sure that we are not trading one concentration for another,” Gleason said, adding that diversification within CIB is important to long-term franchise value. Jake Munn, president of corporate and institutional banking, said CIB now includes more than seven major business lines, including corporate banking and sponsor finance, fund finance, lender finance, natural resources, franchise capital solutions, asset-based lending and equipment finance. → 3 Photonics Companies Making Quantum Tech Possible Munn also highlighted the bank’s emerging middle market group, which he said is intended to bridge the gap between the legacy community bank and…Read full documentShow less
Interested in Bank OZK? Here are five stocks we like better. Bank OZK is pushing to diversify its loan book, with fast-growing corporate and institutional banking helping offset elevated repayments in its real estate specialties group. Management said CIB is becoming a major franchise driver and is being expanded across multiple business lines. RESG repayments remain unusually high and are expected to stay elevated through 2026 and into 2027, though management still expects mid-single-digit loan growth for the full year. Executives said the repayment surge reflects the natural runoff of a strong 2022 origination vintage. Credit quality and reserves remain a focus, but management said recent special mention loan increases may improve over the next few quarters and that prior reserve builds have helped absorb recent charge-offs. The bank also reiterated that real estate concentration is steadily declining and should continue to improve into 2027. 3 high-yielding, small banks to buy on the dip Bank OZK (NASDAQ:OZK) executives used the company’s second-quarter 2026 earnings call to emphasize the bank’s ongoing shift toward a more diversified loan portfolio, with rapid growth in corporate and institutional banking helping offset elevated repayments in its real estate specialties group. Chairman and CEO George Gleason said the corporate and institutional banking, or CIB, business is “a very important and rapidly growing and developing part” of the franchise. He said the bank is investing in the unit and hiring experienced leadership as it seeks to reduce concentration in commercial real estate and the real estate specialties group, or RESG. → Buyback Boom: These 3 Companies Are Betting Billions on Their Own Stocks “We want to make sure that we are not trading one concentration for another,” Gleason said, adding that diversification within CIB is important to long-term franchise value. Jake Munn, president of corporate and institutional banking, said CIB now includes more than seven major business lines, including corporate banking and sponsor finance, fund finance, lender finance, natural resources, franchise capital solutions, asset-based lending and equipment finance. → 3 Photonics Companies Making Quantum Tech Possible Munn also highlighted the bank’s emerging middle market group, which he said is intended to bridge the gap between the legacy community bank and the larger corporate banking and sponsor finance segment. The group will focus on family-owned businesses with roughly $15 million to $100 million in revenue, particularly within Bank OZK’s core footprint. According to Munn, CIB currently represents more than 42 unique NAICS categories, giving the bank flexibility to adjust its emphasis across business lines as market conditions change. He said growth in the most recent quarter was led by corporate banking and sponsor finance, along with natural resources, while asset-based lending was less emphasized because of tighter pricing and more aggressive advance rates in that market. → AI Data Centers Need Power, and These 2 Industrials Are Cashing In Munn said the bank views CIB as more than a loan-growth engine, pointing to potential deposit opportunities and cross-selling in treasury management, private wealth management, commodity hedging, interest-rate hedging and capital markets services. Executives said repayments in the RESG portfolio remained high in the second quarter and are expected to stay elevated through the rest of 2026 and into 2027. Gleason said repayments approached $3 billion in the second quarter and averaged about $2.5 billion per quarter over the trailing four quarters. Gleason said the elevated repayment activity is tied to the natural cadence of loans originated during 2022, which he described as a record origination year. He said the bank expects repayments to taper somewhat in 2027 but remain elevated based on current projections. President Brannon Hamblen said repayment timing can shift based on market conditions, sponsor strategies, refinancing activity, sales decisions and cap-rate changes. “A lot of it’s just the natural cadence of the portfolio moving through the pipe,” Hamblen said. Despite the repayment headwind, Gleason said the bank continues to expect mid-single-digit loan growth for the full year. He said a wave of repayments early in the second quarter pressured average earning assets, making it difficult to catch up during the rest of the period. “Hopefully those prepayments will be a little more levelized in Q3 and Q4,” Gleason said. Asked about changes in net interest income commentary, Gleason said the principal factor was average earning assets rather than deposit competition or liability-side pressures. He said the bank had expected more linear growth during the year but experienced a pullback in the second quarter after early loan payoffs. Gleason said Bank OZK had anticipated a competitive deposit environment at the start of the year, and that environment has continued. He said the bank’s view of net interest margin is broadly consistent with analyst consensus estimates and reiterated that management expects margin to be slightly below the first quarter’s 4.20% level. On deposit costs, Gleason said the bank’s CD specials are roughly 10 basis points higher than their low point, reflecting expectations for more deposit growth in the third and fourth quarters to support loan growth. He said the second-quarter cost of interest-bearing deposits likely represented an inflection point and that modest increases are expected going forward. Chief Financial Officer Tim Hicks said he expects average earning assets to increase in both the third and fourth quarters from the second-quarter level. Credit quality was a major focus of the call, with analysts asking about special mention loans, life science exposure and charge-offs. Gleason said the increase in special mention loans should not be overinterpreted, noting that some loans enter the category while extension or recapitalization discussions are underway and later return to pass status. “I think there are several of them that look like they’re going to work out favorably and be candidates for upgrade over the next couple of quarters, if not the next month or two,” Gleason said. Hicks said Bank OZK had built its allowance for credit losses in recent years in anticipation of later charge-offs. As those charge-offs are realized, he said the bank has considered it appropriate to reduce the allowance over the last couple of quarters. He cited two Seattle buildings that moved into other real estate owned during the quarter, with charge-offs of $22 million on the office property and $3.7 million on the life science property, saying those amounts had already been reserved for in the prior quarter. Hicks said provision expense has been below consensus estimates over the last several quarters and could continue to “drift down” if the economy maintains its resiliency and strength. On life science, Gleason said the bank has a “pretty healthy” allowance for the portfolio given sector challenges. He said several life science assets are well leased, while one life science loan that was exited through a discounted payoff was, in his view, probably the least desirable single asset in the portfolio. Hamblen said tenant activity has improved in some markets, including interest from technology, AI and office users in addition to life science tenants. Gleason said muted RESG origination volume and ongoing repayments will continue to reduce the bank’s real estate concentration. He said Bank OZK is now below the regulatory concentration guideline for total commercial real estate and expects to be below the 100% guideline for construction and development by the end of 2026 or early 2027. Management expects the CIB and RESG portfolios to become roughly equal in size at some point in 2027. Gleason said that implies continued strong growth in CIB and continued paydowns in RESG. He also said the community banking, indirect and RV portfolios could show more positive momentum through 2027, resulting in a more balanced portfolio across major segments. Asked about share repurchases, Hicks said the bank used about $175 million of its prior $200 million authorization over the last four quarters at an average price below tangible book value. He said the board has approved a new $200 million authorization for the next four quarters, with actual usage dependent on the stock price. Gleason closed the call by saying management looks forward to updating investors again next quarter. Bank OZK, formerly known as Bank of the Ozarks, is a regional commercial bank headquartered in Little Rock, Arkansas. Established in 1903, the bank offers a full suite of banking products and services to both individual and corporate clients. Through a combination of organic growth and targeted acquisitions, Bank OZK has built a diversified lending portfolio and a strong deposit franchise. The bank's core operations focus on commercial real estate lending, including acquisition, development and construction financing. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Bank OZK Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.
TranscriptFY2026 Q22026-07-22FY2026 Q2 earnings call transcript
Earnings source - 101 paragraphs
FY2026 Q2 earnings call transcript
Ladies and gentlemen, thank you for standing by. Welcome to Bank OZK second quarter 2026 earnings conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you would need to press star one one on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star one one again. Please be advised that today's conference is being recorded. I would like now to turn the conference over to Jay Staley, Managing Director of Investor Relations and Corporate Development. Please go ahead.
Good morning. I'm Jay Staley, Managing Director of Investor Relations and Corporate Development for Bank OZK. Thank you for joining our call this morning and participating in our question and answer session. In today's Q&A session, we may make forward-looking statements about our expectations, estimates, and outlook for the future. Please refer to our earnings release, management comments, financial supplement, and other public filings for more information on the various factors and risks that may cause actual results or outcomes to vary from those projected in or implied by such forward-looking statements. Joining me on the call to take your questions are George Gleason, Chairman and CEO, Brannon Hamblen, President, Tim Hicks, Chief Financial Officer, and Jake Munn, President, Corporate and Institutional Banking. We'll now open up the lines for your questions. Let me now ask our operator, Michelle, to remind our listeners how to queue in for questions.
Thank you. As a reminder, to ask a question, please press star one one on your telephone and wait for your name to be announced. To withdraw your question, please press star one one again. Our first question is going to come from Stephen Scouten with Piper Sandler. Your line is now open.
Yeah, good morning. Thanks, everyone. I guess I'd love to start kind of with some updated thoughts around CIB, if you could, kind of walking us through some of the comments you made in the management commentary about the internal diversification within CIB and just kind of how you think that will, now that we've progressed a bit down the path, how you expect to see CIB impact loan loss reserves in the future, if we should continue to see that come down as a percentage of the loans given their lower credit risk seemingly, and just the impact that they've had on fees to date and projected moving forward.
Hey, thank you for the question, Stephen. We appreciate it. I am going to turn this straight over to Jake Munn. This is his area. I will preface Jake's remarks by saying that CIB is a very important and rapidly growing and developing part of our franchise. We are investing a lot in it and hiring really talented, experienced people to lead it. We are looking forward and enjoying the diversification now of our loan portfolio with CIB's addition and the CRE concentration coming down and significantly from RESG.
We want to make sure that we are not trading one concentration for another. The diversification within CIB's portfolio, which it has a lot of different business lines to a lot of different types of customers, is a very important long-term franchise value enhancement, we believe, for Bank OZK. Jake, I am going to let you take some of the other points there that need addressing in response to Stephen's question.
Yeah, I appreciate that, George. Good morning, Stephen. It is good to hear from you. We are excited about the growth of CIB that we continue to make across these diversified business segments, and George hit the nail on the head there. Currently, we have over seven business lines or major business lines, if you want to call them, our corporate banking and sponsor finance group, our fund finance, our lender finance group, our natural resources group, our recently launched franchise capital solutions group, which focuses on multi-unit franchises across our footprint, our asset-based lending group, one of our older business units, and then our recently reconfigured equipment finance group.
In addition to that, we are excited, and we shared in our management comments, the introduction of our emerging middle market group which is going to be an exciting bridge between our legacy community bank and the area that our CBSF group in particular was playing in. That will fill that $15 million-$100 million call it revenue size, family-owned, non-enterprise value business, which is really going to be a nice addition and true franchise grower for us with a focus in our core footprint, really complementing, again, our community bank and our branch network. We are excited about that growth. Again, all of these business lines continue to contribute to our quarter-over-quarter and year-over-year growth for CIB. To George's point, it allows us to have diversification in the underlying loan base. We represent over 42 different specific and unique NAICS currently.
In addition to that, it allows us to have different levers to pull depending on the seasons that we're in, whether those are macroeconomic changes, microeconomic changes, tightening and compression of margins in one group. It allows us to focus on continuously building, but building in a way that's beneficial to our bottom line and in a way where we don't take on any undue credit risk. You'll see our CBSF group in the case of this last quarter, as well as our NRG group, really be the shining stars of growth ABLG a little bit less, just because we've seen some tightening in pricing within that group over the last quarter or two, and we've also seen in that market a little bit more aggressive advance rates.
We'll pull out of one of those segments a little bit, or back away, I should say, while we lean into another, depending on current market terms. It's allowing us to have a very diversified engine to continue to grow our C&I coverage in concert with our community bank to really add franchise value. What we love about these different CIB business units is that it's not just the loan book. We're talking about deposit opportunities.
We're talking about working with Chad Parramore and his team on the treasury management side that Cindy is doing a fantastic job really building out. In addition to that, it gives the opportunity to cross-sell our private wealth management, our private client, commodity hedging, interest rate hedging, our capital market solutions. It's a true relationship-focused, one relationship at a time build, which is allowing for some nice scaling in that diversified C&I side.
Okay. Fantastic. Appreciate all that color, Jake and George. I guess, maybe kind of pivoting to the legacy RESG book, is there any update you can give as we obviously continue to move towards August on that IQHQ property and just kind of any color in terms of what you might expect next quarter upon that maturity, if there's any commentary that you can give there as we reach that maturity date?
Brannon, you want to take that?
Yeah, sure, Stephen. Great to hear from you again. Yes, as has been discussed, we do have a maturity upcoming, actually next month. We are engaged in conversations around the multi-year extension and recapitalization of that project with both the sponsor and the mezz lender engaged on that. Terms haven't been fully developed, we're pleased with the constructive nature of the conversations, look forward to the evolution of that extension. Can't really say more about it now, hopefully in around 92 days, we'll have more to report.
Okay, great. That's encouraging. I guess, really goes along with what you guys have been trying to do with all these projects, which is continuing to engage sponsors, get more capital when needed, and work through the resolution as quickly as possible, right? More of the same, right?
Very much so. These sponsors have been supportive and we're encouraged about the conversation so far.
Fantastic. Appreciate it. Thanks for the time, guys.
Thank you.
Thank you. The next question is going to come from Matt Olney with Stephens. Your line's open.
Hey, thanks. Good morning. I want to ask about these RESG repayments that were elevated in the second quarter. I think the commentary calls for RESG repayments to remain elevated for the balance of this year and into 2027. I want to focus on 2027. I think that's a little bit newer commentary. Any more color you can share on expectations of these repayments in the back half of the year and into next year? Thanks.
Yes. Thank you, Matt. Appreciate the question. I'll take that and then Brannon can add any color he wants to add to that. Obviously, the quarter just ended was a big quarter of repayments with that number approaching $3 billion. If you look across the last trailing four quarters, we've averaged about $2.5 billion a quarter. All of that is consistent with our guidance that repayments will vary somewhat from quarter to quarter and that they're going to be elevated as we work through that big origination year of 2022, a record origination year there. Those were all cycling through.
We do expect continued repayments this year and into next year. Our sense is that will taper off a bit next year, but still be at an elevated level based on our current projections, elevated but slightly less elevated than 2027. I think that's the guidance we can give you on that. Obviously, this is a natural phenomenon given the cadence of originations and the typical life of these loans on our RESG book. Brannon may want to add something to that.
I don't know that I can add a whole lot. That last point's really important to understand and why we've included our RESG repayment cadence in report after report. You can sort of follow what's left. These things move around, as George said, the market conditions, market factors, and even our sponsors' sort of strategy around repay or refinance and keep or sell and the impact of cap rate changes on those things. No, I think a lot of it's just the natural cadence of the portfolio moving through the pipe.
Okay. Appreciate the commentary. I guess sticking with the loan growth discussion, I think the guidance still calls for the mid-single-digit loan growth for the full year. That would imply a nice improvement in the back half of the year. Any more color you can share about expectations for loan growth over the next two quarters? Thanks.
I think the guidance we gave at the beginning of the year, and we've reiterated it in the management comments here of mid-single digits is a good number. In the quarter just ended, we got a wave of repayments early, which had us significantly down on loan volume early in the quarter, and we were chasing volume all quarter trying to catch up with that early wave of repayments. I think that is some useful perspective on the color.
Notwithstanding that, we were able to improve our margin 4 basis points in the quarter and still put up higher net interest income in Q2 than Q1. We were battling that prepayment wave really hard early on in Q2. Hopefully those prepayments will be a little more levelized in Q3 and Q4. As Brannon mentioned, these repayments move around, when you get a big slug of them right off the bat early in the quarter, it's hard to catch up on the average earning assets.
Okay. I'll step back. Thank you.
Thank you.
Thank you. The next question is going to come from Manan Gosalia with Morgan Stanley. Your line's open.
Hey, good morning. Maybe just a follow-up to the question that you just responded to, I guess. With the changes in the NII commentary in the management comments, is that largely a function of the payoff activity? Because, as we think about we came into this year with a few rate cuts in the forward curve. It is a more asset-sensitive balance sheet with the prospect of rate hikes, that should be a little bit more beneficial. But is pay down really the only reason that the NII commentary is changing a little bit?
Yes, Manan, I think that's the principal reason. It's average earning assets, and not so much the volume of pay downs as just the sequence and timing of those. When we started the year, we had expected a little bit more sort of linear growth, and not the pullback in growth in Q2. We were up 2% roughly after Q1, and then had negative growth in Q2, so we went backwards. We had expected that to be a little more linear through the year, and that's tamped down our average earning assets. Again, as Brannon mentioned, it's a very valid comment. A lot of these loans are chunkier loans, so a loan pulling forward two months ahead of schedule or something moves the projections there. The cautious guidance on being able to equal or beat last year's net interest income number just simply is a product of average earning assets.
Got it. Nothing related to, I guess, funding competition or anything else on the liability side?
We had projected a pretty competitive deposit gathering environment in the beginning of the year. It has been a competitive deposit gathering environment, but there's nothing new about that. I think if you look at analyst consensus estimates on net interest margin, I think the consensus numbers there are more or less correct on where we think. Our guidance that we're likely to be a little bit under the first quarter's 420 NIM is consistent with what the consensus number has got built in. I think the Street pretty much has this on consensus about right.
Got it. Maybe on the loan loss reserves, I know there's some specific reserves that you're releasing as you take some charge-offs, but maybe if you can talk about how you're thinking about reserves relative to the prospect of higher rates in the forward curve and maybe some of the pressure that you're seeing on the special mention loan category this quarter.
Let me comment on special mention, and then we'll let Tim talk about the reserve. We did have an increase in our volume of special mention loans, I wouldn't read too much into that. Loans come into special mention. Some of them, as we saw a couple of examples of in the quarter just ended, become more severely rated and move into classified asset category. A lot of loans come into special mention, extensions, recapitalizations get accomplished in the ordinary course of business, and they move back to pass rated credit. We put a sentence in the management comments this time commenting that several of those loans are in special mention. We're in really good discussions and good activities that would result in those loans moving back to a past status.
They're in there because those discussions are going on, we've got to get to a final conclusion on those discussions. I think there are several of them that look like they're going to work out favorably and be candidates for upgrade over the next couple of quarters, if not the next month or two. Tim, you want to comment on the ACL?
Yeah. Hey, Manan. Certainly, you've seen our comments over the last several years about growing our ACL in anticipation of charge-offs that would be realized at a later time. As those charge-offs are actually now being realized, we've felt it appropriate to decrease our ACL over the last couple of quarters, as those charge-offs have been recognized. For instance, in the previous quarter, we had built a pretty sizable ACL on the two Seattle buildings that went into OREO this quarter that included a charge-off of $22 million on the office and $3.7 million on the life science building. Those were already reserved for in the previous quarter. I think we take a very cautious, prudent approach to building the ACL at the appropriate time.
As we're working through some of these problem assets in the life science and office portfolios that we've seen over the last few quarters, the ACL has come down and I think over the last several quarters, the provision number that we put up has been less than what the consensus number was. I think you'll probably see that continue to drift down assuming the economy maintains some of the resiliency and strength that we've seen over the last several years. We are in the later stages of working through some of these additional assets that we've outlined on pages 24 and 25 or 23 and 24. I think the trends that you've seen over the last few quarters are consistent with what my thoughts would be moving forward.
Great. Thanks, George. Thanks, Tim.
Thank you.
Thank you. The next question will come from Catherine Mealor with KBW. Your line is open.
Thanks. Good morning.
Good morning.
Maybe one question just to circle back on credit and the direction of the reserve. Can you just give us an update on any trends that you're seeing in your life science portfolio? It feels like that's been where a lot of the negative migration has been, and you're working through that. Any comfort that you can give us that you've worked through maybe some of the more stressed projects within that portfolio, and that would lead you to believe that the reserve might be able to come down over the next few quarters. Thanks.
We have a pretty healthy ACL for that portfolio reflecting the general challenges on that sector. We've got several of these life science assets that do have good leasing. There are no issues at all with those. They're well leased. One of our really nice paydowns that we got in the quarter just ended was a big paydown on a well-leased life science project that we extended the term on. That was a nice win. The life science loan that we took a charge-off on this quarter that was previously special mention that we took a short payoff on to exit. That was, I think, probably our least desirable, in my view, single asset in the portfolio.
Other folks might disagree with that, but we're focused on asset by assets basis looking at these, and I thought that was probably a more challenging asset from a long-term value and future perspective than some of the others. We got a chance to exit that at a discounted payoff. We thought that was a nice improvement to the portfolio to move that out. There is a fair amount of leasing activity ongoing on several of the life science projects. A lot of it is not for life science. It's for technology, AI, or office purposes. There is some activity there. Brannon, I'll let you share any additional thoughts you want to share about life science.
Well, you hit most of the bullet points I would have hit there, George, in talking about portfolio. Look, we've shared it's been a challenged market. It's hurdles with respect to the macro picture, with respect to specific funding pictures in the industry. Generally speaking, this year, we've seen a pickup in venture capital focus that way, and we've seen an increase in just tenant activity in certain markets and specifically around some of these projects that we have. As George mentioned, the AI influence, that continues to be the case.
We continue to see tenants in the market that are operating from that perspective, that are looking at these uses. There are also very life science-focused tenants in the markets as well. We still have, as they say, some wood to chop and working with sponsors to continue to support these through lease-up. I would say that generally, the first half of the year has had a more positive flavor to it just broadly in markets with tenant activity in that space.
Great. Very helpful. Thank you. My follow-up is just on the margin trajectory. Can you give us an update on just kind of what trends you're seeing in incremental deposit costs? I feel like, and you've mentioned in your prepared remark or your management comments, that this is probably a bottom in deposit cost and as we move through the year, that'll trickle up just with higher rates. Just any kind of incremental data on where your CDs kind of are coming on and then any benefit that we'll get just from kind of some core deposits coming from CIB versus just the incremental deposit cost coming on today. Thank you.
Yeah. We are probably 10 basis points higher than our low point on our CD specials across the board. We have increased that really in the last probably about four to six weeks ago. I don't remember the exact timing of that. That is a reflection of the fact that we expect to need to grow more deposits in Q3 and Q4 based on a moderately increased volume of outstanding loans. We're ramping up a little bit for that. We said in the management comments, Catherine, that we thought the Q2 cost of interest-bearing deposits was probably an inflection point, and we go higher from there. I don't think we're expecting to run off the rails going higher. I think it's just somewhat of a slight increase higher from where we were on COIBD in Q2.
Modest increases in that cost as we go forward, part of that is driven by the need to generate more deposit volume simply because we expect more loan growth in Q3 and Q4. We commented in management comments we were really pleased with the good work that our funding team, deposit generating teams did in Q2 getting that five basis point reduction in our cost of COIBD, which combined with the work our investment team did on the investment portfolio, let us actually improve net interest margin four basis points during the quarter. I don't think anybody probably or not many people expected that improvement. It was a nice result for the quarter, particularly given the high level of pay downs early in the quarter that beat our average earning assets down for the quarter. That was a nice offset.
We'll benefit less from that ability in Q3 and Q4. As we grow loans more, we'll have to be a little more aggressive on deposit generation. When we were getting a lot of loan payoffs early in the quarter, our deposit guys were able to adjust their deposit gathering strategy and squeeze a little bit of margin benefit out as a result of the higher level of loan payoffs. There's a give and take there that plays. We would rather have the volume, but if you don't get the volume, you like the way our team responded to that, and they were able to grind some margin improvement out in a lower volume environment.
Great. Very helpful. Thank you.
Thank you.
Thank you. The next question will come from Brian Martin with Brean. Your line is open.
Hey, good morning, everyone. Thanks for all the insight thus far. Maybe just one question for whomever, just on the progress you made this quarter and just recent quarters, George, on the shift to CIB and away from real estate. Given the payoffs continue and the momentum continues at CIB, the drop this quarter seems a little bit more given the payoffs are a little bit higher. Should it just be a more gradual decline all else being equal? I know your comments about the payoffs being volatile, but kind of from this 48% level, just give us some update as you look out over the next four to eight quarters, kind of where that ends up, where that ends, and just maybe the trajectory, if you can give any color on that or any help on that.
Yeah. The RESG origination volume as we've reported in management comments, has been pretty muted. We're working hard to find volume. A lot of these cities where we've originated a lot of volume in the past are raising taxes and adopting policies that are not specifically pro-business and are really anti-business, and that is affecting the need for new product in those markets. That plus the fact that there's a lot of capital out there chasing debt in the CRE space, it's very competitive on new deals. That's keeping that volume muted and probably is going to do so for some number of quarters farther out. My crystal ball doesn't go too far out on that. It's a challenging environment to originate volume.
Of course, because of the high level of originations in 2022, and to a lesser extent 2023, we're in the heart of a big payoff wave. RESG is going to continue to drop. We don't talk about it a lot, but we're now, I think, at our second quarter end where we're under 300%, so we're below the regulatory concentration guidelines for total CRE, and probably by the end of the year, we'll be under, or early next year, we'll be under the 100% guideline for construction and development. That portfolio is going to continue to shrink for the remainder of this year and into next year. We commented in the management comments that we expect CIB and RESG portfolios will be equal in size next year, at some point next year.
That gives you a real indication, because CIB is $7+ billion now, and RESG is $15+ billion, and we're expecting those are going to equalize and cross at some point in 2027, which means we're going to continue to see strong growth in CIB and strong paydowns in RESG. I think what we don't talk about a lot that is important is, I think over the next six quarters through 2027, you're going to see a more positive momentum out of our community banking group and continued positive momentum out of our indirect and RV group. That group was in the 12 something percent. It's now 13.7% of our portfolio in the indirect. Our community banking portfolio has pretty much languished around its current balance more or less for a couple of years now.
We have reorganized some of the reporting structures there, took a little more straight line and clean cut set of reporting structures we've implemented there. I think the team is really excited about that, and I think we're going to get some positive growth out of that. If you look at the portfolio as really being kind of three parts, the community banking indirect being one part, RESG being one part, CIB being one part, I think you get to a more or less equal sized, very diversified portfolio in 2027. I think being below the regulatory CRE concentrations, having that portfolio very diversified is really accretive to our long-term shareholder comfort and franchise value. That's part of this multi-year design and strategy we've been pursuing of getting more diversified.
I do think you will see RESG be an important contributor to our growth and portfolio long term. I think you will see it grow again, but it may get into the 20% of portfolio range before it hits that inflection point where origination fundings exceed payoffs and it turns back to a more positive contributor to growth. I don't think we're going to see a lot of change in the paydown volume for a number of quarters.
Got you. That's super helpful, George. Thank you. Maybe just one follow-up just on the credit front, given your comments about special mention and kind of some more positive movement there than negative that normally would be anticipated, and the fact that most of the non-performing issues are concentrated with a handful of credits. Can you just give any big picture, kind of resolution on the credit path? It feels like your bias or your outlook is a bit more positive, particularly with maybe not as much concern on the special mention and the other credits identified, the reserve coming down. Just kind of want to understand if we're hearing that right and just if that's more kind of how we should think about it if we do see some path for resolution here in the next couple of quarters. That's what it sounds as, though.
Brian, what I would say on that is the RESG portfolio is recycling in a constructive and healthy and normal way. We mentioned there, we've had $9.95 billion, almost $10 billion of that portfolio pay off over the last four quarters. If you think about that in the context of the entire and those are funded balance. If you think about that in the context of the entire commitments in the portfolio, that's a massive recycling of those assets. It has been a very long and very tough CRE cycle for a lot of our customers. The quality of our sponsors and customers has shown up really well because we went through several years of that challenging environment with no problems to speak of, and we've had a handful of problems.
We'll have a few more assets that will emerge as problems over the next year and a half, as we work through this kind of final stages of that cycle. The portfolio is recycling really quickly with $2 billion-$3 billion a quarter in payoffs. The vast majority of our sponsors, as we have said all the way through, the vast majority of our sponsors are continuing to support their transactions in a very positive way. You saw that in the quarter just ended, we had $91.5 million of unscheduled pay downs in the RESG portfolio, $19.5 million of additional reserve deposits posted in connection with extensions of loans. We had $37.5 million of unfunded balances curtailed in connection with the modification, extension of loans, and collected $5.4 million modification fees. The vast majority of our sponsors continue to support their loans.
There have been, obviously, we've got 10, 12 assets that we've identified that are either in foreclosed assets or classified assets that we didn't get the support we needed. There'll be a few more of those as we go forward. We also have one of those OREO assets, and three of the substandard loans that I feel pretty optimistic about our ability to work those out over the next few months. We're far along with resolution liquidation plans on those assets. We're working through the problems. The problems have been fairly isolated in number, and I think we're doing an excellent job working through them as they come up. Lastly, I would say, we built a big reserve in our ACL to deal with potential loss exposure on that, and we feel very good about the adequacy of the ACL to deal with that exposure across the entire portfolio.
Perfect. That's all helpful for me. I'll step back. Maybe if in parting, maybe Tim could just comment if you've got one easy comment, Tim, on just your outlook on the buyback, but that'd be it. Thank you very much, George, for the comments and everyone else.
Thank you. Thank you, Brian. Buyback, Tim.
Hey, Brian. Certainly, was pleased with the buyback activity over the last four quarters. I think I used about $175 million of the $200 million repurchase authorization. The average price there was below tangible book value, which was very accretive, not only to tangible book value, but EPS. Moving forward, we have the brand-new $200 million authorization for the next four quarters. How much we'll use of that will really be dependent on our stock price over that time period. I would anticipate we would use some of that. How much, again, just really is going to depend on our stock price.
All right. Thank you.
Thank you.
Thank you.
Thank you. The next question will come from Timur Braziler with UBS. Your line is open.
Hi, good morning.
Morning.
In regards to the net charge-off language, it looks like the commentary of it being roughly in line with 2025 was removed. Just wondering if the current cadence that we are on is the right way to think about charge-offs here going forward. Then maybe to use a baseball analogy, if you can provide what inning you think you're in terms of classifying, kind of reappraisal of the current book, and then similarly on where we are with actually charging off and kind of dealing with those new appraisals. Thank you.
Timur, I'm going to resist the temptation to use a baseball analogy. I'm not a huge baseball fan. Even though our Arkansas Razorbacks baseball team is a great college team. What I will point you to is the language that we've had for several quarters now, in our management comments document. That is, we think we're in the late stages of a long cycle that has been a challenging cycle for our customers for a number of years. As that cycle has worn on, the resilience of some of our customers to continue to withstand that cycle and support their assets has diminished, and that's why you're seeing the handful of special mention and foreclosed assets, and classified assets that you're seeing. As I said in response to Brian's question, the RESG portfolio is recycling quickly.
The $10 billion in round numbers of payoffs over the last four quarters is a strong indication that that portfolio is recycling and recycling quickly to current generation assets that are underwritten and in a different environment. We feel like we are adequately provisioned for that. As I told Brian, I think there'll be a few more bumps in the road, and we'll have a few more problem assets, but we're also resolving assets at a pretty diligent rate as well. Late stages, that probably continues this year and into next year. I think we're feeling pretty good about where we are in the cycle. Now, as for the net charge-off number, we are a little above the industry's Q1 number through six months. We have a long history of outperforming the industry, multi-decade history of outperforming the industry.
I think we've got a good shot of getting back under the industry's number for the year. We'll see how that plays out. It's a chunky mix of charge-offs. The vast majority of our charge-offs in the quarter just ended were on poor credit, so it tends to be a little chunky in the way those are recognized. It's not like we have 100,000 loans that there's an averaging effect on. We're cautiously optimistic about our ability to get back under the industry number for the year. We'll see how that plays out.
Okay, great. As a follow-up, maybe one more on RaDD in San Diego. Can you remind us, is IQHQ still making full cash payments? Is that payment in kind? I'm just curious in terms of how you're thinking about risk migration with another extension coming up here in August. Maybe talk us through why pass rated, from a risk kind of standpoint, is still the right place to be here.
Yeah. What I can tell you, on payment in kind, PIK interest, we don't PIK interest on any loans. The interest on that credit, as all of our credits, is being paid from reserves that were established for that purpose. You'll recall, early last year, and then previously in 2024, there were two very large contributions to the reserve that we were holding on those loans from the sponsorship group on that asset specifically, that had been paying operating costs and interest and other costs related to those projects. We do not PIK interest on loans. That's not relevant to that project or any other project.
What I could tell you is this is a pass-rated credit there, and that's because of the very constructive dialogue that we've had with the sponsor and the mezz lender, both of whom, as Brannon alluded to, are working in what appears to be a very constructive and positive negotiation to work out a multi-year extension of that asset. That really is a negotiation with us, but it's also a negotiation between those two parties. It'll take a little while to negotiate that. We're cautiously optimistic about the outcome of that and have every expectation that that will be a successful outcome and that will remain a pass-rated credit. Obviously, if our thoughts in that regard change, we'll make appropriate adjustments to the classification of that asset.
Okay. Thank you.
Thank you.
Thank you. The next question will come from Janet Lee with TD Securities. Your line is open.
Good morning.
Good morning.
Your expectation around CIB and RESG being roughly equal in size in 2027, which is great for diversification purposes. My understanding was that CIB loans are slightly lower yielding than RESG. What is the implication on NIM, perhaps in 2027, if CIB were to become a larger size? Does it result in a structurally lower NIM? Maybe it also brings in some lower cost deposits over a longer term, but just want to understand the structural impact of larger CIB on your net interest margin.
I think a lot of that, Janet, is already in our net interest margin. Our RESG originations over the last couple of years have had, because of the competitive environment for those assets and the fact that a larger and larger part of our RESG loans are multifamily loans where the spreads on those loans look very much like the CIB loans. The remixing of the RESG portfolio to be predominantly multifamily and really industrial is a big part of it. Those spreads look like CIB related spreads. If you went back three or four or five years, we certainly were getting higher spreads on RESG loans then when we were doing more large, complex, mixed-use projects, more office, life science sort of projects than we are getting on that portfolio today.
That differential has tended to somewhat diminish, and the yields on those portfolios have tended to get closer and closer together. There's still a delta, but it's a much smaller delta than it would've been in past years. The second thing, you correctly surmised that we get a lot more deposits with our CIB loans, and we get a lot more contribution to non-interest fee income from CIB. Jake's talked about that in his comments, and talked about the partnership with treasury management and the focus on those various service parts of their business that generate fees, whether it's on interest hedges or commodity hedges or syndication of debt or equity transactions or just other kind of loan related but non-interest fees that they generate.
We think CIB is going to be as profitable for us as RESG long term, and that the yield differential we expected is really no longer there. Jake mentioned the way he is managing that CIB book and the different types of loans we make there. There's sometimes that various categories of loans get very aggressive because you got a few people really trying to put a lot of money into that space. Jake mentioned one category where we've seen yields compress, and we're finding we get better yields in other categories with the same or better risk profiles than those other categories.
He's doing an excellent job. He and his very capable, very veteran team doing an excellent job of decelerating growth in areas where spreads are getting compressed by competition and accelerating where we can get real good value on a risk-adjusted basis. Super proud of the job they're doing on managing that.
George, I'll just piggyback quickly off of that. Really to emphasize what you were saying. Yeah, if you were to go back 2019, the fund finance book was created. 2021, you had the legacy ABL and lender finance group. Since then, we've launched our CBSF, our FCS, our NRG, EMM, EFG. All that being said is those new business lines are really relationship focused to George's point. You have the opportunity for this great cross-sell, this additional non-interest fee income generating engine, whether it's the commodity hedging, interest rate hedging, capital markets fees, treasury management, you name it. A lot more single lender direct deals as a result of that relationship focus too.
As CIB has kind of grown and evolved over the last couple of years as part of the enterprise, the average return, the average spread has improved greatly for these CIB names, but also the average kind of all-in yield has improved greatly. I think it's been quarter after quarter after quarter if you're to look at for that most recent quarter's new loans originated, the average spread has actually increased over the historic book. Quarter-over-quarter for this last quarter, it went up by over 25 basis points on the average spread on these new loans that were originating in CIB just compared to the average across the legacy book.
We really are focused on relationship banking where we can harvest deposits, where we have the opportunity to cross-sell products and services that are beneficial to our clients, but result in a great return for the bank and for our shareholders. We're doing that without giving up any sort of credit or loosening terms or anything of that nature too. We're taking our time, we're picking our plays, we're doing it in a conservative and strategic manner.
Got it. Thank you for all the color. Not to beat on the dead horse, but on average earning assets, I just want to make sure that I'm understanding this correctly. Should we expect average earning assets in the second half to be relatively stable to the second quarter given the RESG repayment? While you're still targeting mid-single digit loan growth for the year? Or should it still step up in the second half of 2026? Thank you.
Tim?
Yeah. Janet, I still expect it to step up each quarter in Q3 and Q4 from where we are in Q2.
Okay. Thank you.
Thank you. I will now turn the call back over to George Gleason for closing remarks.
Thank you guys for being on the call today. We appreciate it. We look forward to talking to you again in about 92 days. Have a great day. Thank you.
This concludes today's conference call. Thank you for participating. You may now disconnect.
Investor releaseQuarter not tagged2026-07-21Bank OZK Announces Second Quarter 2026 Earnings
GlobeNewswire
Bank OZK Announces Second Quarter 2026 Earnings
LITTLE ROCK, Ark., July 21, 2026 (GLOBE NEWSWIRE) -- Bank OZK (the “Bank”) (Nasdaq: OZK) today announced that net income available to common stockholders for the second quarter of 2026 was $163.3 million, a decrease of 8.7% from $178.9 million for the second quarter of 2025, but an increase of 2.5% from $159.3 million for the first quarter of 2026. For the first six months of 2026, net income available to common stockholders was $322.6 million, a 7.0% decrease from $346.8 million for the first six months of 2025. Diluted earnings per common share (“EPS”) for the second quarter of 2026 were $1.49, a decrease of 5.7% from $1.58 for the second quarter of 2025, but an increase of 3.5% from $1.44 for the first quarter of 2026. EPS for the first six months of 2026 were $2.93, a 3.9% decrease from $3.05 for the first six months of 2025. George Gleason, Chairman and Chief Executive Officer, stated, “We are pleased to report our solid financial results for the quarter including EPS of $1.49, a 1.60% return on assets, a 4.24% net interest margin, a 39.2% efficiency ratio, strong increases in our book value and tangible book value per common share, and meaningful increases in our capital ratios. We continued to make significant progress with the strategic diversification of our loan portfolio. Our solid financial performance and steady progress on numerous strategic initiatives have us well-positioned for the future.” MANAGEMENT COMMENTS, FINANCIAL SUPPLEMENT AND CONFERENCE CALL In connection with this release, the Bank released its management comments on its quarterly results and a financial supplement, which are available at the Bank's investor relations website. Management will conduct a conference call to take questions at 7:30 a.m. CT (8:30 a.m. ET) on Wednesday, July 22, 2026. Interested parties may access the conference call live via webcast on the Bank’s investor relations website, or may participate via telephone by registering using this online form. Upon registration, all telephone participants will receive the dial-in number along with a unique PIN number that can be used to access the call. A replay of the conference call webcast will be archived on the Bank’s website for at least 30 days. GENERAL INFORMATION Bank OZK (Nasdaq: OZK) is a regional bank providing innovative financial solutions delivered by expert bankers with a relentless pursuit of excellenc…Read full documentShow less
LITTLE ROCK, Ark., July 21, 2026 (GLOBE NEWSWIRE) -- Bank OZK (the “Bank”) (Nasdaq: OZK) today announced that net income available to common stockholders for the second quarter of 2026 was $163.3 million, a decrease of 8.7% from $178.9 million for the second quarter of 2025, but an increase of 2.5% from $159.3 million for the first quarter of 2026. For the first six months of 2026, net income available to common stockholders was $322.6 million, a 7.0% decrease from $346.8 million for the first six months of 2025. Diluted earnings per common share (“EPS”) for the second quarter of 2026 were $1.49, a decrease of 5.7% from $1.58 for the second quarter of 2025, but an increase of 3.5% from $1.44 for the first quarter of 2026. EPS for the first six months of 2026 were $2.93, a 3.9% decrease from $3.05 for the first six months of 2025. George Gleason, Chairman and Chief Executive Officer, stated, “We are pleased to report our solid financial results for the quarter including EPS of $1.49, a 1.60% return on assets, a 4.24% net interest margin, a 39.2% efficiency ratio, strong increases in our book value and tangible book value per common share, and meaningful increases in our capital ratios. We continued to make significant progress with the strategic diversification of our loan portfolio. Our solid financial performance and steady progress on numerous strategic initiatives have us well-positioned for the future.” MANAGEMENT COMMENTS, FINANCIAL SUPPLEMENT AND CONFERENCE CALL In connection with this release, the Bank released its management comments on its quarterly results and a financial supplement, which are available at the Bank's investor relations website. Management will conduct a conference call to take questions at 7:30 a.m. CT (8:30 a.m. ET) on Wednesday, July 22, 2026. Interested parties may access the conference call live via webcast on the Bank’s investor relations website, or may participate via telephone by registering using this online form. Upon registration, all telephone participants will receive the dial-in number along with a unique PIN number that can be used to access the call. A replay of the conference call webcast will be archived on the Bank’s website for at least 30 days. GENERAL INFORMATION Bank OZK (Nasdaq: OZK) is a regional bank providing innovative financial solutions delivered by expert bankers with a relentless pursuit of excellence. Established in 1903, Bank OZK conducts banking operations in 267 offices in nine states including Arkansas, Georgia, Florida, Texas, North Carolina, Tennessee, New York, California and Mississippi and had $41.7 billion in total assets as of June 30, 2026. For more information, visit ozk.com. The Bank files annual, quarterly and current reports, proxy materials, and other information required by the Securities Exchange Act of 1934 with the Federal Deposit Insurance Corporation (“FDIC”), copies of which are available electronically at the FDIC’s website and are also available on the Bank’s investor relations website at ir.ozk.com. Use this online form to receive automated email notifications for these materials. FORWARD-LOOKING STATEMENTS This press release 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 that they do not relate strictly to historical or current facts. Forward-looking statements often use words such as “anticipates,” “targets,” “expects,” “hopes,” “estimates,” “intends,” “plans,” “goals,” “believes,” " feels," “continue” and other similar expressions or future or conditional verbs such as “will,” “may,” “might,” “should,” “would” and “could.” Forward-looking statements represent the Bank’s current expectations, plans or forecasts of its future results, revenues, liquidity, net interest income, provision for credit losses, expenses, efficiency ratio, capital measures, strategy, deposits, assets, and future business and economic conditions more generally, and other future matters. These statements are not guarantees of future results or performance and involve certain known and unknown risks, uncertainties and assumptions that are difficult to predict and are often beyond the Bank’s control. Actual outcomes and results may differ materially from those expressed in, or implied by, any of these forward-looking statements.
Investor releaseQuarter not tagged2026-07-21Bank OZK: Q2 Earnings Snapshot
Associated Press
Bank OZK: Q2 Earnings Snapshot
LITTLE ROCK, Ark. (AP) — LITTLE ROCK, Ark. (AP) — Bank OZK (OZK) on Tuesday reported second-quarter earnings of $167.4 million. The Little Rock, Arkansas-based bank said it had earnings of $1.49 per share. The results topped Wall Street expectations. The average estimate of five analysts surveyed by Zacks Investment Research was for earnings of $1.46 per share. The bank posted revenue of $673 million in the period. Its revenue net of interest expense was $430 million, falling short of Street forecasts. Four analysts surveyed by Zacks expected $432 million. _____ This story was generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on OZK at https://www.zacks.com/ap/OZK
Investor releaseQuarter not tagged2026-07-21Here's What Key Metrics Tell Us About Bank OZK (OZK) Q2 Earnings
Zacks
Here's What Key Metrics Tell Us About Bank OZK (OZK) Q2 Earnings
For the quarter ended June 2026, Bank OZK (OZK) reported revenue of $430.02 million, up 0.5% over the same period last year. EPS came in at $1.49, compared to $1.58 in the year-ago quarter. The reported revenue compares to the Zacks Consensus Estimate of $432.02 million, representing a surprise of -0.46%. The company delivered an EPS surprise of +2.06%, with the consensus EPS estimate being $1.46. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health. As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately. Here is how Bank OZK performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Net interest margin: 4.2% versus the five-analyst average estimate of 4.2%. Efficiency Ratio: 39.2% versus the five-analyst average estimate of 38.5%. Total Average Interest-Earning Assets (FTE): $37.6 billion versus $38.68 billion estimated by four analysts on average. Net charge-offs to average total loans: 0.7% compared to the 0.5% average estimate based on four analysts. Total Nonperforming loans: $300.42 million versus the three-analyst average estimate of $292.3 million. Total Non-Interest Income: $37.87 million compared to the $34.49 million average estimate based on five analysts. Net Interest Income: $392.15 million versus the four-analyst average estimate of $397.65 million. Net Interest Income (FTE): $397.93 million versus the four-analyst average estimate of $401.45 million. Deposit-related fees- All other service charges: $11.4 million compared to the $11.14 million average estimate based on three analysts. Loan-related fees: $12.48 million versus $9.21 million estimated by three analysts on average. Gains (losses) on sales of other assets: $0.97 million versus the three-analyst average estimate of $0.61 million. Trust income: $3.04 million versus $3.02 million estimated by two analysts on average. View all Key Company Metrics for Bank OZK here>>> Shares of Bank OZK have returned +3.2% over the past month versus the Zacks S&P 500 composite's -0.6% change. The stock currently has a Z…Read full documentShow less
For the quarter ended June 2026, Bank OZK (OZK) reported revenue of $430.02 million, up 0.5% over the same period last year. EPS came in at $1.49, compared to $1.58 in the year-ago quarter. The reported revenue compares to the Zacks Consensus Estimate of $432.02 million, representing a surprise of -0.46%. The company delivered an EPS surprise of +2.06%, with the consensus EPS estimate being $1.46. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health. As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately. Here is how Bank OZK performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Net interest margin: 4.2% versus the five-analyst average estimate of 4.2%. Efficiency Ratio: 39.2% versus the five-analyst average estimate of 38.5%. Total Average Interest-Earning Assets (FTE): $37.6 billion versus $38.68 billion estimated by four analysts on average. Net charge-offs to average total loans: 0.7% compared to the 0.5% average estimate based on four analysts. Total Nonperforming loans: $300.42 million versus the three-analyst average estimate of $292.3 million. Total Non-Interest Income: $37.87 million compared to the $34.49 million average estimate based on five analysts. Net Interest Income: $392.15 million versus the four-analyst average estimate of $397.65 million. Net Interest Income (FTE): $397.93 million versus the four-analyst average estimate of $401.45 million. Deposit-related fees- All other service charges: $11.4 million compared to the $11.14 million average estimate based on three analysts. Loan-related fees: $12.48 million versus $9.21 million estimated by three analysts on average. Gains (losses) on sales of other assets: $0.97 million versus the three-analyst average estimate of $0.61 million. Trust income: $3.04 million versus $3.02 million estimated by two analysts on average. View all Key Company Metrics for Bank OZK here>>> Shares of Bank OZK have returned +3.2% over the past month versus the Zacks S&P 500 composite's -0.6% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Bank OZK (OZK) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research
Investor releaseQuarter not tagged2026-07-21Bank OZK Reports Lower Q2 Earnings
MT Newswires
Bank OZK Reports Lower Q2 Earnings
Bank OZK (OZK) reported Q2 earnings late Tuesday of $1.49 per diluted share, down from $1.58 a year
Investor releaseQuarter not tagged2026-07-21Bank OZK (OZK) Tops Q2 Earnings Estimates
Zacks
Bank OZK (OZK) Tops Q2 Earnings Estimates
Bank OZK (OZK) came out with quarterly earnings of $1.49 per share, beating the Zacks Consensus Estimate of $1.46 per share. This compares to earnings of $1.58 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +2.06%. A quarter ago, it was expected that this bank would post earnings of $1.46 per share when it actually produced earnings of $1.44, delivering a surprise of -1.37%. Over the last four quarters, the company has surpassed consensus EPS estimates just once. Bank OZK, which belongs to the Zacks Banks - Northeast industry, posted revenues of $430.02 million for the quarter ended June 2026, missing the Zacks Consensus Estimate by 0.46%. This compares to year-ago revenues of $428.04 million. The company has topped consensus revenue estimates two times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Bank OZK shares have added about 11.8% since the beginning of the year versus the S&P 500's gain of 8.7%. While Bank OZK has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Bank OZK was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be inter…Read full documentShow less
Bank OZK (OZK) came out with quarterly earnings of $1.49 per share, beating the Zacks Consensus Estimate of $1.46 per share. This compares to earnings of $1.58 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +2.06%. A quarter ago, it was expected that this bank would post earnings of $1.46 per share when it actually produced earnings of $1.44, delivering a surprise of -1.37%. Over the last four quarters, the company has surpassed consensus EPS estimates just once. Bank OZK, which belongs to the Zacks Banks - Northeast industry, posted revenues of $430.02 million for the quarter ended June 2026, missing the Zacks Consensus Estimate by 0.46%. This compares to year-ago revenues of $428.04 million. The company has topped consensus revenue estimates two times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Bank OZK shares have added about 11.8% since the beginning of the year versus the S&P 500's gain of 8.7%. While Bank OZK has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Bank OZK was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.54 on $442.37 million in revenues for the coming quarter and $6.02 on $1.74 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Banks - Northeast is currently in the top 35% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, Princeton Bancorp (BPRN), has yet to report results for the quarter ended June 2026. This bank is expected to post quarterly earnings of $0.90 per share in its upcoming report, which represents a year-over-year change of +800%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Princeton Bancorp's revenues are expected to be $21.84 million, up 3.7% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Bank OZK (OZK) : Free Stock Analysis Report Princeton Bancorp, Inc. (BPRN) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research
Investor releaseQuarter not tagged2026-07-17WAFD Q3 Earnings Lag on Higher Provisions & Expenses, Revenues Up Y/Y
Zacks
WAFD Q3 Earnings Lag on Higher Provisions & Expenses, Revenues Up Y/Y
WaFd Inc.’s WAFD third-quarter fiscal 2026 (ended June 30) adjusted earnings of 81 cents per share lagged the Zacks Consensus Estimate by a penny. However, the bottom line jumped 11% year over year.Results were hurt by a substantial rise in provisions and higher expenses. Further, lower loan and deposit balances acted as a spoilsport. These were partially offset by higher net interest income (NII) and non-interest income. The quarterly results excluded certain notable items. After considering these, net income available to common shareholders was $62.5 million, up 7.2% from the prior-year quarter. Our estimate for the metric was $60.2 million. Quarterly net revenues (net interest income plus total non-interest income) were $205.5 million, up 10.3% from the prior-year quarter. The top line outpaced the Zacks Consensus Estimate of $198.9 million. NII for the quarter was $181.3 million, rising 7.9% year over year. The net interest margin (NIM) was 2.81%, up 12 basis points (bps) from 2.69% in the year-ago quarter. Our estimates for NII and NIM were $176.1 million and 2.80%, respectively.Total non-interest income of $24.2 million increased 32.3% year over year. The rise was primarily driven by higher other income, deposit fee income and loan fee income. Excluding certain one-time gains, adjusted non-interest income rose 13% to $20.7 million. Our estimate for the metric was $20.1 million and did not include any one-time gain numbers.Total non-interest expenses were $110.3 million, up 5.8%. The increase was mainly due to higher compensation, technology, product delivery, occupancy and FDIC insurance expenses. Our estimate for the metric was $111.6 million.The company’s efficiency ratio was 53.69%, down from 56.01% in the prior-year quarter. A fall in the efficiency ratio reflects improved profitability.Return on average common equity was 9.23% at the end of the third quarter of fiscal 2026, up from 8.54% in the prior-year quarter. Return on average assets was 0.96%, up from 0.92%. As of June 30, 2026, net loans receivable were $20.02 billion, down 1.3% from the year-ago quarter. We projected the metric to be $20.08 billion.Total deposits were $20.93 billion, down 2.1% from $21.39 billion in the prior-year quarter. Our estimate for the metric was $21.25 billion. As of June 30, 2026, allowance for credit losses (including the reserve for unfunded commitments) was 1…Read full documentShow less
WaFd Inc.’s WAFD third-quarter fiscal 2026 (ended June 30) adjusted earnings of 81 cents per share lagged the Zacks Consensus Estimate by a penny. However, the bottom line jumped 11% year over year.Results were hurt by a substantial rise in provisions and higher expenses. Further, lower loan and deposit balances acted as a spoilsport. These were partially offset by higher net interest income (NII) and non-interest income. The quarterly results excluded certain notable items. After considering these, net income available to common shareholders was $62.5 million, up 7.2% from the prior-year quarter. Our estimate for the metric was $60.2 million. Quarterly net revenues (net interest income plus total non-interest income) were $205.5 million, up 10.3% from the prior-year quarter. The top line outpaced the Zacks Consensus Estimate of $198.9 million. NII for the quarter was $181.3 million, rising 7.9% year over year. The net interest margin (NIM) was 2.81%, up 12 basis points (bps) from 2.69% in the year-ago quarter. Our estimates for NII and NIM were $176.1 million and 2.80%, respectively.Total non-interest income of $24.2 million increased 32.3% year over year. The rise was primarily driven by higher other income, deposit fee income and loan fee income. Excluding certain one-time gains, adjusted non-interest income rose 13% to $20.7 million. Our estimate for the metric was $20.1 million and did not include any one-time gain numbers.Total non-interest expenses were $110.3 million, up 5.8%. The increase was mainly due to higher compensation, technology, product delivery, occupancy and FDIC insurance expenses. Our estimate for the metric was $111.6 million.The company’s efficiency ratio was 53.69%, down from 56.01% in the prior-year quarter. A fall in the efficiency ratio reflects improved profitability.Return on average common equity was 9.23% at the end of the third quarter of fiscal 2026, up from 8.54% in the prior-year quarter. Return on average assets was 0.96%, up from 0.92%. As of June 30, 2026, net loans receivable were $20.02 billion, down 1.3% from the year-ago quarter. We projected the metric to be $20.08 billion.Total deposits were $20.93 billion, down 2.1% from $21.39 billion in the prior-year quarter. Our estimate for the metric was $21.25 billion. As of June 30, 2026, allowance for credit losses (including the reserve for unfunded commitments) was 1.08% of gross loans outstanding, up from 1.03% in the prior-year quarter.The ratio of non-performing assets to total assets was 0.49%, up from 0.36% in the previous-year quarter. In the reported quarter, provision for credit losses was $11.0 million, up from $2.0 million in the year-ago quarter. We had projected the metric to be $3.1 million. In the reported quarter, WAFD repurchased 8,806 shares at a weighted average price of $36.20 per share. The company’s share buyback plan had a remaining authorization of 8.0 million shares as of June 30, 2026. Higher NII, margin expansion and rising non-interest income are expected to support WAFD’s financial performance as interest rates remain unchanged. However, declining loans and deposit balances, elevated expenses and weak asset quality are key near-term concerns. WaFd, Inc. price-consensus-eps-surprise-chart | WaFd, Inc. Quote Currently, WAFD carries a Zacks Rank #4 (Sell). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Hancock Whitney HWC is slated to announce second-quarter 2026 results on July 21.Over the past seven days, the Zacks Consensus Estimate for Hancock Whitney’s quarterly earnings has remained unchanged at $1.55. This implies 13.1% growth from the prior-year quarter.Bank OZK OZK is also scheduled to announce second-quarter 2026 results on July 21.Over the past seven days, the Zacks Consensus Estimate for Bank OZK’s quarterly earnings has remained unchanged at $1.46. This implies 7.6% decline from the prior-year quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report WaFd, Inc. (WAFD) : Free Stock Analysis Report Hancock Whitney Corporation (HWC) : Free Stock Analysis Report Bank OZK (OZK) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research