If you’re hunting for Bank of the Ozarks stock, you might notice something weird right away. The name is gone. Well, mostly. In 2018, they officially rebranded to Bank OZK, but old habits die hard in the South and on Wall Street. People still search for the old name because it represents one of the wildest growth stories in regional banking.
Honestly, it’s a polarizing stock. Some investors see a "Dividend Aristocrat" in the making—a bank that has hiked its payout for 62 consecutive quarters. Others look at their massive concentration in commercial real estate (CRE) and get a little sweaty. As of mid-January 2026, the stock is hovering around $48.51, and the tension between its high-yield "safe" reputation and its aggressive lending "risk" profile has never been higher.
The Bank of the Ozarks Stock Identity Crisis
Let’s be real: Bank OZK isn't your local neighborhood credit union. While they have 260+ offices across states like Arkansas, Georgia, and Florida, they are essentially a high-octane construction lender masquerading as a regional bank.
Their Real Estate Specialties Group (RESG) is the engine. This group funds massive skyscrapers, mixed-use developments, and luxury condos in places like San Diego, Miami, and New York. Because they do the "hard" loans that other banks are too scared to touch, they command much higher interest rates. This is why their Net Interest Margin (NIM)—the gap between what they pay depositors and what they charge borrowers—is often north of 4.3%, leaving competitors in the dust.
But here is the catch.
When you own Bank of the Ozarks stock, you are betting on the survival of the American skyline. If the office market collapses or luxury condos stop selling, the "Ozark" model gets tested. Critics have been calling for their downfall for a decade. Yet, during the 2023 regional banking crisis, OZK stood firm. Their weighted average Loan-to-Value (LTV) ratio in the RESG portfolio is roughly 44%.
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Basically, property values would have to drop more than 50% before the bank loses a single dime of principal on those loans. That’s a massive cushion.
Why the Dividend is the Real Hook
For many, the reason to hold Bank of the Ozarks stock isn't the growth—it’s the quarterly ritual of the "penny raise." On January 2, 2026, the board did it again. They raised the quarterly dividend to $0.46 per share.
It’s just a one-cent increase from the previous quarter. Sounds tiny, right? But it was the 62nd straight quarter they’ve done it. That is fifteen and a half years of never missing a beat, even through COVID-19 and the fastest interest rate hikes in a generation.
- Annualized Dividend: $1.84
- Current Yield: ~3.8%
- Payout Ratio: Roughly 29-30%
The low payout ratio is the key. Most banks pay out a much higher percentage of their earnings to keep shareholders happy. OZK keeps 70% of its profits to fund more loans and buy back its own stock. In 2025, they launched a $200 million share repurchase program, which basically tells you management thinks the stock is cheap.
What the Analysts are Worried About in 2026
You can't talk about Bank of the Ozarks stock without mentioning the "CRE cliff." In early January 2026, analysts from firms like Morgan Stanley and Citigroup have been keeping a close eye on the bank’s provision for credit losses.
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Last year, the bank grew its Allowance for Credit Losses (ACL) to roughly $680 million. That's a lot of "rainy day" money. Analysts are split down the middle. As of today, the consensus is a "Hold," with price targets ranging from $40 on the low end to $67 on the high end.
Morgan Stanley recently lowered their target to $59.00, citing concerns that as the Fed cuts rates in 2026, the bank's loans will reprice faster than its deposits. If that happens, their fat profit margins might start to shrink. It’s a classic "margin squeeze" scenario.
The Efficiency Machine
One thing nobody disputes is that George Gleason (the CEO who has been at the helm since 1979) runs a tight ship. The bank’s efficiency ratio—how much it costs to make a dollar—is consistently in the 35% range.
For context, most "good" banks are happy to be under 60%. OZK is a lean, mean, lending machine. They don't spend money on Super Bowl ads or fancy stadium naming rights. They just lend.
Is Now the Time to Buy?
Investing in Bank of the Ozarks stock right now is a game of "yield vs. fear."
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If you believe the U.S. economy will avoid a hard landing and that high-quality commercial real estate remains a viable asset class, the stock looks incredibly undervalued. It’s trading at a P/E ratio of about 7.8, which is dirt cheap compared to the broader S&P 500.
However, if you think the "work from home" trend is finally going to bankrupt the developers building those luxury towers in Manhattan or Nashville, you might want to stay away. The bank is currently $41.6 billion in assets, and a huge chunk of that is tied to those specific projects.
Actionable Insights for Investors
- Watch the January 20th Earnings: The Q4 2025 report is due any day. Look past the headline profit and check the "Non-Performing Loans" (NPL) number. If it stays below 0.25%, the bank is still winning.
- Focus on the Tangible Book Value: As of late 2025, their tangible book value was around $45.23. Since the stock is at $48.51, you are barely paying a premium for the actual assets of the bank. That’s a decent "margin of safety."
- Dividend Reinvestment: If you’re a long-term holder, the compounding effect of 62 straight quarterly raises is massive. Reinvesting those $0.46 checks at a 3.8% yield is a proven way to build a position over time.
- Mind the Fed: Bank OZK’s goal for 2026 is to beat its record net interest income from 2025. This depends entirely on the speed of Fed rate cuts. If rates stay "higher for longer," OZK’s margins remain safe. If rates crash, expect some volatility.
There’s a reason this bank changed its name to "OZK." It wanted to sound less like a rural lender and more like a tech-savvy financial powerhouse. But the soul of the company is still in the underwriting. They are either the smartest guys in the room or the most over-leveraged—and after 27 years of dividend growth, the track record suggests they know exactly what they’re doing.
Next Steps for You: Check your portfolio's exposure to regional banks. If you're looking for income, compare OZK's 3.8% yield to peers like Western Alliance (WAL) or Pinnacle Financial (PNFP). Most won't have the 15-year streak of quarterly increases that OZK maintains.