Updated 4/11/25
Bank OZK isn’t the kind of name that dominates headlines or trends on financial media. But for patient, income-minded investors, that might actually be a strength. Based in Little Rock, Arkansas, OZK has spent decades quietly building a reputation as a disciplined, well-run regional bank. Its specialty lies in real estate lending—especially construction loans—and it’s carved out a unique corner of the market through smart underwriting and a conservative approach to growth.
Over the years, OZK has grown from a small community operation into a respected regional institution, all while maintaining the kind of balance sheet strength and earnings consistency that dividend investors love. It’s not flashy, but it’s dependable. And in the current market, that counts for a lot.
Recent Events
In the last year, Bank OZK has held steady amid a changing and often challenging banking environment. While other banks have struggled with deposit outflows and tighter margins, OZK’s financials remain solid. Revenue has continued to rise, albeit modestly, with a year-over-year increase of 6.2%. Net income came in strong at $700 million, reflecting the bank’s ability to manage through economic shifts without losing momentum.
The stock itself has taken a hit, sliding from a 52-week high of $53.64 down to around $37 as of mid-April 2025. That’s a sharp pullback, but the reasons behind it appear more about sector-wide sentiment than any specific red flags at OZK. Earnings are still growing, and operational efficiency remains high.
One thing that does stand out is the rise in short interest—now sitting at about 16% of the float. That’s a notable number, especially for a relatively low-volume stock. It’s not necessarily a reason for concern, but it does hint at broader market skepticism or hedging behavior. For long-term dividend investors, though, short-term volatility often brings opportunity.
Key Dividend Metrics 🏦
📈 Forward Yield: 4.51%
💵 Annual Dividend: $1.72 per share
📆 Next Dividend Date: April 21, 2025
🛑 Ex-Dividend Date: April 14, 2025
📊 Payout Ratio: 25.73%
📉 5-Year Avg Yield: 3.29%
📈 Recent Dividend Growth: 8.9% (5-year CAGR)
These numbers paint a picture of a stock that delivers solid income without stretching itself too thin. A forward yield over 4.5% is generous, especially when it’s backed by real earnings and a conservative payout ratio below 30%. It’s the kind of dividend profile that doesn’t just provide income today—it also offers a good chance of growing that income over time.
Dividend Overview
Bank OZK’s dividend story is one of quiet consistency. At $1.72 per share annually, the yield here is not only higher than average, but it’s built on a strong foundation. Earnings per share currently sit at $6.14, meaning there’s ample room for the bank to cover its dividend without breaking a sweat.
What really sets OZK apart, though, is its record of raising the dividend every single quarter for more than ten years. Not every year—every quarter. That kind of commitment speaks to a culture that values shareholders and understands the power of compounding.
With a payout ratio sitting comfortably under 26%, OZK doesn’t need to stretch to maintain or even increase its dividend. And at just 6.1 times earnings and a price-to-book ratio of 0.80, the stock offers that yield at what looks like a steep discount.
The broader banking sector has seen some turmoil, but OZK’s fundamentals offer a layer of protection. Even if earnings flatten out or credit losses tick up, there’s a wide margin of safety built into this dividend.
Dividend Growth and Safety
If you’re looking for a dividend that not only pays but grows, Bank OZK delivers. The 5-year compound annual dividend growth rate is close to 9%, which is more than respectable. Better yet, that growth has been smooth and steady, not erratic or reactionary.
Return on equity is over 13%, a healthy level that indicates management is getting strong returns on capital. Operating margin sits near 62%, which is high for a bank of this size and adds more support to the idea that earnings are sustainable.
On the balance sheet side, OZK carries about $2.8 billion in cash and less than $1 billion in debt. That’s the kind of setup that gives investors confidence. In an environment where credit conditions can shift quickly, that financial cushion goes a long way toward ensuring the dividend remains safe.
A bank with strong capital, disciplined lending practices, and consistent profitability doesn’t have to rely on heroics to fund its dividend. And with such a low payout ratio, there’s not just room for the dividend to grow—there’s room to keep growing it even in a downturn.
Unlike many higher-yielding stocks that look good on paper but fall apart when stress hits, OZK offers both a solid current yield and the kind of underlying quality that keeps those payments coming year after year.
It’s the kind of stock that dividend investors can quietly accumulate and let do the heavy lifting over time—without having to wonder if the next economic hiccup will force a cut.
Cash Flow Statement
Bank OZK’s cash flow profile for the trailing 12 months shows a healthy level of operating efficiency and liquidity. Operating cash flow stands at $834 million, holding steady compared to last year and reflecting continued strong earnings conversion. Free cash flow came in at approximately $739 million, again consistent with past performance and indicating disciplined capital spending—capex remained modest at just under $96 million.
On the investing side, outflows totaled over $3.25 billion, which is a sizable commitment, though notably down from the prior year’s $5.53 billion. This likely reflects ongoing investment in the bank’s loan portfolio and securities. Financing cash flow was strong at $3.05 billion, driven by funding activity that helped maintain a solid cash position. The end-of-period cash balance climbed to $2.78 billion, up from $2.15 billion a year earlier, demonstrating the bank’s ability to grow liquidity while continuing capital returns and strategic investment.
Analyst Ratings
🔼 Bank OZK recently picked up an upgrade from Wells Fargo, shifting from “Underweight” to “Equal Weight.” Along with the new stance, the firm bumped its price target from $40 to $48. That signals a reassessment of risk and return, and a bit more confidence in the stock’s ability to stabilize after recent pullbacks.
📉 Morgan Stanley, on the other hand, trimmed its price target from $58 to $54 but held steady with its “Equal Weight” rating. It’s a subtle signal that while they still see long-term potential, short-term headwinds are starting to impact expectations.
🟡 Stephens & Co. nudged their target up from $53 to $57 while keeping a “Hold” rating. That reflects a view that the fundamentals remain strong, but there may not be much near-term upside left from current levels. They appear cautiously optimistic, banking on consistent performance.
🆕 UBS has initiated coverage with a “Neutral” rating and a $51 price target. It’s a classic middle-ground call — acknowledging the bank’s solid financials but also the broader uncertainty in the regional banking space.
📊 Across the board, the consensus price target sits around $50, with most analysts tagging the stock as a “Hold.” That speaks to confidence in the company’s balance sheet and dividend stability, but also a measured view of growth in the current macro climate.
Earning Report Summary
Bank OZK wrapped up 2024 with a solid performance that reinforced its position as one of the more consistent names in regional banking. The fourth quarter numbers came in strong, showing not only stability but also a bit of momentum heading into the new year.
Strong Bottom Line and Operational Growth
Net income available to common shareholders reached $177.1 million for the quarter, which was a noticeable step up from last year’s $169.6 million. That bumped earnings per share up to $1.55 from $1.49—nothing flashy, but steady progress that suggests good control over operations. What really stands out is their pre-tax, pre-provision net revenue hitting $282.6 million, which marks a healthy 7% increase over the same quarter in the previous year. It’s a metric that gives a clearer view of how well the bank is running before factoring in loan loss provisions or taxes.
Lending and Deposits Moving in the Right Direction
Loans continued their upward climb, ending the quarter at $29.2 billion. That’s a 15% jump compared to last year, with much of that growth coming from the bank’s bread-and-butter: real estate and construction lending. Deposits weren’t far behind, rising nearly 20% to over $30.5 billion. The balance sheet keeps expanding, too, with total assets reaching $37.4 billion. It’s clear OZK isn’t just treading water—it’s still growing.
Managing Risk While Building Capital
One thing OZK has always been known for is keeping risk in check. Nonperforming loans did tick up slightly to 0.60% of total loans, but that’s still within manageable range. The average loan-to-value ratio in the real estate portfolio is sitting at 44%, which is conservative by any standard. That cushion gives the bank breathing room if things get bumpy in the credit markets.
Return on assets came in at 1.90% and return on common equity was just under 14%, showing solid efficiency in how the bank is deploying its capital. Tangible book value per share also rose to $40.49 from $34.50 a year ago, reflecting consistent internal growth and profitability.
Management sounded upbeat about the year ahead, especially with a strong loan pipeline and expansion efforts in the Corporate and Institutional Banking group. They’re clearly positioning the bank for another year of steady execution rather than splashy surprises—and that’s often just what long-term investors want to see.
Chart Analysis
Price Movement and Trend
OZK has had quite the ride over the past year. The price chart shows multiple sharp swings, with clear periods of strength followed by sudden drops. From early spring last year, the stock climbed steadily, pushing past $47 by late May. But June brought a quick selloff, taking it below $38, before rebounding again. That back-and-forth rhythm continued through the year with brief rallies and equally sharp pullbacks, particularly visible in August, November, and most dramatically in February when shares touched near $54.
Since that February high, the stock has trended lower and broken beneath both its 50-day and 200-day moving averages, which often signals growing weakness in momentum. The 50-day moving average has started curling downward, a possible indication of a near-term downtrend settling in. Price recently dipped below $37, and there’s no clear floor visible just yet.
Volume and Participation
Volume has been fairly consistent, but a few standout spikes suggest strong reactions around key price moves—particularly during selloffs. There’s no massive dry-up in volume, which implies that investor interest hasn’t disappeared, even as the price has slid. Still, there’s been no surge in buying to catch the recent fall either.
RSI and Momentum
The relative strength index tells a deeper story here. Back in January and early February, the RSI hovered above 70, indicating the stock was overbought at the time. Since then, the RSI has cooled off and dipped below 30 in March, suggesting the stock entered oversold territory. That triggered a minor bounce, but the rebound hasn’t had much strength behind it. The RSI is now hanging around the neutral zone but not showing any convincing upward momentum.
Overall, the chart shows a stock that has been unable to find a strong footing in recent months. It had periods of solid performance through 2023 and early 2024, but recent price action reflects pressure and cautious sentiment. The technical picture is leaning soft right now, with both moving averages and RSI hinting that the current trend remains under some stress.
Management Team
At the helm of Bank OZK is George Gleason, who has served as Chairman and CEO since 1979. His leadership has been instrumental in transforming the bank from a small Arkansas institution into a regional powerhouse. Gleason’s long tenure provides continuity and a deep understanding of the bank’s operations and strategic direction.
Supporting Gleason is President Brannon Hamblen, who joined the bank in 2008. Hamblen has held various roles, including Director of Asset Management and Chief Operating Officer of the Real Estate Specialties Group, before becoming President in 2021. His experience in real estate lending aligns with the bank’s core competencies.
Tim Hicks serves as Chief Financial Officer, bringing a wealth of experience in corporate finance and investor relations. Hicks has been with Bank OZK since 2009, holding positions such as Chief Credit and Administrative Officer and Executive Director of Investor Relations. His financial acumen supports the bank’s fiscal discipline and strategic planning.
Cynthia Wolfe, the Chief Operating Officer, has been with the bank since 1997. She has played a pivotal role in expanding the bank’s presence, particularly in the Carolinas, and has held various leadership positions in lending and community banking.
This seasoned leadership team combines stability with a deep understanding of the bank’s operations, positioning Bank OZK for continued success.
Valuation and Stock Performance
Bank OZK’s stock is currently trading at a price-to-earnings ratio of approximately 6.1, which is lower than the industry average. This suggests that the market may be undervaluing the bank relative to its earnings potential. The price-to-book ratio stands at 0.80, indicating that the stock is trading below the book value of its assets.
Analysts have set a consensus price target of around fifty dollars, with some estimates reaching higher into the mid to upper 50s. This reflects a potential upside from the current trading price, assuming the bank continues its strong financial performance.
Over the past year, the stock has experienced volatility, with a 52-week high of 53.64 and a low of 35.71. Despite these fluctuations, the bank has maintained consistent earnings and dividend growth, which may appeal to investors seeking stability and income.
The bank’s tangible book value per share increased to 41.48 at the end of 2024, up from 36.58 the previous year. This growth in book value reflects the bank’s ability to generate shareholder value through retained earnings and prudent capital management.
Risks and Considerations
Bank OZK’s significant exposure to commercial real estate and construction lending presents both opportunities and risks. While the bank has a strong track record in this sector, economic downturns or a decline in real estate markets could impact loan performance. The concentration in CRE loans means that any sector-specific challenges could disproportionately affect the bank’s financial health.
The bank’s strategy to diversify its loan portfolio into other verticals may introduce new risks. Entering unfamiliar markets could lead to challenges in underwriting and risk assessment, potentially affecting asset quality. Additionally, the shift may result in a temporary compression of net interest margins as the bank adjusts to different yield profiles.
Regulatory scrutiny is another consideration, especially given the bank’s involvement in large-scale projects and its substantial CRE exposure. Changes in regulatory policies or increased oversight could impact the bank’s operations and profitability.
Market sentiment towards regional banks can also influence stock performance. Investor concerns about the broader banking sector, interest rate fluctuations, or economic indicators may affect the bank’s valuation, regardless of its individual performance.
Final Thoughts
Bank OZK has demonstrated a consistent ability to generate earnings and grow its dividend, supported by a seasoned management team and a focused business strategy. The bank’s strong capital position and conservative underwriting practices provide a solid foundation for navigating market challenges.
While the concentration in commercial real estate lending presents specific risks, the bank’s expertise in this area and efforts to diversify its portfolio may mitigate potential downsides. The current valuation suggests that the stock may offer value, particularly for investors seeking income and long-term growth potential.
As with any investment, it’s essential to consider the broader economic environment and individual risk tolerance. Bank OZK’s performance will likely continue to reflect its disciplined approach to banking and its responsiveness to market conditions.