Bank OZK(US:OZK) ZACKSยท2025-07-18 15:41Core Viewpoint - Bank OZK reported better-than-expected quarterly results, with earnings per share of $1.58, surpassing estimates and reflecting a 3.9% year-over-year increase [1][9] Financial Performance - Net income available to common shareholders was $178.9 million, up 3.1% from the prior year, exceeding the estimate of $162.9 million [2] - Net revenues reached $428 million, a 2.7% increase year-over-year, beating the Zacks Consensus Estimate of $417.7 million [3] - Net interest income (NII) was $396.7 million, up 2.3% year-over-year, surpassing the estimate of $379.1 million [3] - Non-interest income increased to $31.3 million, an 8.7% rise year-over-year, although slightly below the estimate of $32.2 million [4] - Non-interest expenses rose to $153.2 million, an 11.4% increase from the prior year, exceeding the expected $150.2 million [4] Efficiency and Credit Quality - The efficiency ratio increased to 35.53%, up from 32.67% in the prior year, indicating a decline in profitability [5] - Total loans amounted to $33 billion, a 6.1% sequential increase, while total deposits reached $33.5 billion, up 5% [5] - Net charge-offs to average total loans were 0.10%, down 7 basis points year-over-year, and provision for credit losses decreased by 28.2% to $35.2 million [6] Profitability Ratios - Return on average assets was 1.81%, down from 1.92% in the previous year, and return on average common equity fell to 12.98% from 13.98% [7] Share Repurchase Program - Bank OZK repurchased 1.12 million shares for $43.2 million during the quarter and announced a new repurchase program worth $200 million effective July 1, 2025 [10] Industry Context - Other banks, such as Commerce Bancshares Inc. and Hancock Whitney Corp., also reported positive earnings, benefiting from increases in NII and non-interest income, although they faced challenges from higher provisions and expenses [12][13]