Bank OZK (OZK) investor relations material

Financial performance and growth

• Achieved record net interest income of $1.59 billion in 2025, marking five consecutive years of record performance, with a 3.8% increase over 2024 and strong quarterly results despite some seasonality and Fed rate cuts.

• Total assets reached $40.8 billion, loans $32.3 billion, and deposits $33.4 billion at year-end 2025, reflecting four-year growth of 54% in assets, 77% in loans, and 65% in deposits.

• Net interest margin for 2025 was 4.33%, consistently outperforming the industry by 91 bps, though down 23 bps from 2024 due to rate environment.

• Efficiency ratio was 35.6% for 2025, among the best in the industry, supporting strong profitability.

• Return on average assets was 1.75% and return on average tangible common equity was 14.15% for 2025.

Loan portfolio and diversification

• Loan growth in 2025 was 7.8%, with CIB and Indirect RV & Marine lending driving diversification as RESG repayments remained elevated.

• RESG loans accounted for 54% of funded loans at year-end, down from a peak of 70%, as CIB and other segments increased their share.

• CIB loans grew to $5.25 billion (16.3% of funded loans), and Indirect RV & Marine reached $4.24 billion (13.1%).

• Community Banking loans were $5.24 billion (16.2%), supporting geographic and product diversification.

• Expectation for mid-single digit loan growth in 2026 and acceleration to 10–11% in 2027 as RESG repayments subside.

Asset quality and risk management

• Net charge-off ratio was 0.50% for 2025, outperforming the industry average, though up from 0.20% in 2024 due to a few RESG credits.

• Allowance for credit losses (ACL) ended 2025 at 1.26% of loans and unfunded commitments, reflecting a prudent build amid macroeconomic caution.

• Nonperforming loans rose to 1.06% of total loans at year-end, primarily due to four RESG substandard non-accrual credits.

• RESG loans maintain low leverage with weighted average LTC of 49% and LTV of 46%, and strong sponsor support evidenced by $1.3 billion in additional equity contributions over 14 quarters.

• Portfolio diversification by product, geography, and loan size continues to mitigate risk.