Analyzing Bank OZK's Q4 Earnings: Key Metrics and Highlights

Bank OZK (OZK) posted its earnings report for the quarter ended December 2024, revealing a revenue of $412.34 million. This marks a slight year-over-year growth of 1.2%. The earnings per share (EPS) for this quarter were $1.56, which is an improvement from the $1.50 reported in the same quarter a year ago.

The revenue generated by Bank OZK surpassed analysts' expectations, representing a surprise of +1.06% over the Zacks Consensus Estimate of $408.04 million. Additionally, the consensus EPS estimate was $1.45, resulting in an EPS surprise of +7.59%.

While stakeholders often focus on overall revenue and earnings numbers year-over-year and how they align with Wall Street's estimates, other vital metrics can offer deeper insights into the bank's underlying performance.

These key metrics influence both revenue and earnings performance. Thus, examining them against previous values and analyst projections can provide a clearer perspective on stock price movements.

Key Metrics Overview

Below is a summary of Bank OZK's performance for the recently concluded quarter based on essential metrics commonly analyzed by Wall Street:

• Net Interest Margin: 4.3%, slightly below the five-analyst average estimate of 4.4%.
• Efficiency Ratio: 33.7%, outperforming the average estimate of 35.2% from five analysts.
• Total Average Interest-Earning Assets (FTE): $35.16 billion, exceeding the four-analyst average estimate of $34.87 billion.
• Net Charge-Offs to Average Total Loans: 0.2%, better than the expected 0.3% average estimate from four analysts.
• Total Non-Interest Income: $32.94 million, surpassing the average estimate of $30.23 million from five analysts.
• Net Interest Income (FTE): $382.72 million, slightly exceeding the four-analyst average estimate of $382.02 million.
• Net Interest Income: $379.40 million, above the four-analyst average estimate of $377.78 million.
• BOLI Income - Increase in Cash Surrender Value: $5.81 million, close to the $5.85 million estimated by three analysts.
• Gains (Losses) on Sales of Other Assets: $0.58 million, below the average estimate of $1.18 million from two analysts.
• Loan Service, Maintenance, and Other Fees: $8.79 million, significantly higher than the two-analyst average estimate of $6.46 million.
• Trust Income: $2.63 million, falling short of the average estimate of $2.70 million from two analysts.

Market Response

Over the past month, Bank OZK's stock has returned +3.3%, contrasting with the Zacks S&P 500 composite, which experienced a -1.6% change during the same period. Currently, Bank OZK holds a Zacks Rank #3 (Hold), indicating expected performance in line with the broader market in the near future.

Bank, Earnings, Metrics