Regional banking company Bank OZK (NASDAQ: OZK) reported revenue ahead of Wall Street’s expectations in Q2 CY2025, with sales up 16.4% year on year to $428 million. Its GAAP profit of $1.58 per share was 1.8% above analysts’ consensus estimates.
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Bank OZK (OZK) Q2 CY2025 Highlights:
- Net Interest Income: $396.7 million vs analyst estimates of $389.8 million (2.3% year-on-year growth, 1.8% beat)
- Net Interest Margin: 4.4% vs analyst estimates of 4.3% (32 basis point year-on-year decrease, in line)
- Revenue: $428 million vs analyst estimates of $423.3 million (16.4% year-on-year growth, 1.1% beat)
- Efficiency Ratio: 35.5% vs analyst estimates of 35.4% (in line)
- EPS (GAAP): $1.58 vs analyst estimates of $1.55 (1.8% beat)
- Market Capitalization: $5.76 billion
George Gleason, Chairman and Chief Executive Officer, stated, “One of our goals for 2025 is to improve on our record 2024 net income and EPS. Our strong results for the first half of the year put us in a great position to achieve that goal. Our talented, entrepreneurial and veteran team is well suited for the very dynamic environment in which we operate today. Our excellent results for the quarter included record net income, record EPS, record net interest income, excellent growth in loans and deposits, and solid asset quality. These results demonstrate our team’s ability to proactively and effectively manage the various challenges of this environment while capitalizing on numerous opportunities.”
Company Overview
Founded in 1903 and rebranded from Bank of the Ozarks in 2018, Bank OZK (NASDAQ: OZK) is a commercial bank that specializes in real estate lending while offering a full range of banking services to individuals and businesses.
Sales Growth
Two primary revenue streams drive bank earnings. While net interest income, which is earned by charging higher rates on loans than paid on deposits, forms the foundation, fee-based services across banking, credit, wealth management, and trading operations provide additional income.
Over the last five years, Bank OZK grew its revenue at an incredible 22.9% compounded annual growth rate. Its growth beat the average bank company and shows its offerings resonate with customers, a helpful starting point for our analysis.
We at StockStory place the most emphasis on long-term growth, but within financials, a half-decade historical view may miss recent interest rate changes, market returns, and industry trends. Bank OZK’s annualized revenue growth of 10.3% over the last two years is below its five-year trend, but we still think the results suggest healthy demand. 
Note: Quarters not shown were determined to be outliers, impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business.
This quarter, Bank OZK reported year-on-year revenue growth of 16.4%, and its $428 million of revenue exceeded Wall Street’s estimates by 1.1%.
Net interest income made up 97.6% of the company’s total revenue during the last five years, meaning Bank OZK lives and dies by its lending activities because non-interest income barely moves the needle.
While banks generate revenue from multiple sources, investors view net interest income as the cornerstone - its predictable, recurring characteristics stand in sharp contrast to the volatility of non-interest income.
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Tangible Book Value Per Share (TBVPS)
The balance sheet drives banking profitability since earnings flow from the spread between borrowing and lending rates. As such, valuations for these companies concentrate on capital strength and sustainable equity accumulation potential.
When analyzing banks, tangible book value per share (TBVPS) takes precedence over many other metrics. This measure isolates genuine per-share value by removing intangible assets of debatable liquidation worth. Other (and more commonly known) per-share metrics like EPS can sometimes be murky due to M&A or accounting rules allowing for loan losses to be spread out.
Bank OZK’s TBVPS grew at an incredible 10.5% annual clip over the last five years. TBVPS growth has also accelerated recently, growing by 13.9% annually over the last two years from $33.67 to $43.72 per share.
Over the next 12 months, Consensus estimates call for Bank OZK’s TBVPS to grow by 11% to $48.54, solid growth rate.
Key Takeaways from Bank OZK’s Q2 Results
It was encouraging to see Bank OZK beat analysts’ net interest income, revenue, and EPS expectations this quarter. Zooming out, we think this was a solid quarter. The stock traded up 1.7% to $52.95 immediately after reporting.
So do we think Bank OZK is an attractive buy at the current price? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here, it’s free.
