Can OZK Maintain Its Returns with a Solid Capital Foundation?

Bank OZK’s Ongoing Commitment to Shareholder Value

Bank OZK is well-positioned to maintain and potentially enhance its strategy for returning capital to shareholders. The institution has demonstrated a strong track record of increasing dividends without interruption, reflecting both reliable earnings and careful management of its resources.

In January, Bank OZK raised its quarterly dividend on common stock to $0.46 per share, representing a 2.2% increase from the previous quarter. This dividend, distributed on January 20, 2026, to shareholders of record as of January 13, 2026, marked the 62nd consecutive quarter of dividend growth for the bank.

Over the past five years, Bank OZK has achieved an annualized dividend growth rate of 11.42%, with 20 dividend hikes during that period. The current payout ratio is 29% of earnings, indicating a balanced and sustainable approach to shareholder rewards.

Beyond dividends, Bank OZK also returns value through share buybacks. In June 2025, the bank authorized a $200 million share repurchase program set to expire on July 1, 2026. As of December 31, 2025, $99 million remained available for repurchases under this plan.

Financially, Bank OZK maintains a robust balance sheet and ample liquidity. At the end of 2025, the bank reported $350 million in total debt and $2.8 billion in cash and cash equivalents, providing a strong liquidity buffer.

With its consistent dividend increases, ongoing share repurchases, and solid financial foundation, Bank OZK is well-equipped to continue its disciplined approach to capital distribution, supporting long-term confidence among its shareholders.

How Other Banks Manage Capital Returns

KeyCorp follows a disciplined approach to capital distribution, focusing on both dividends and share repurchases to deliver value to its investors.

• In 2022, KeyCorp increased its quarterly dividend by 5.1% to $0.205 per share and has maintained this level since. Over the last five years, the company has raised its dividend twice, resulting in a five-year annualized growth rate of 2.2% and a payout ratio of 55%.
• KeyCorp has also been active in share buybacks. In March 2025, it authorized a $1 billion repurchase program with no set expiration. Repurchases began in the fourth quarter of 2025, and as of December 31, 2025, $800 million remained available under this authorization.

The PNC Financial Services Group, Inc. has consistently rewarded shareholders through increased capital returns. In January, PNC announced a 6% rise in its quarterly dividend to $1.70 per share. Over the past five years, PNC has raised its dividend five times, achieving an annualized growth rate of 7.8%.

• PNC also maintains a share repurchase program. As of December 31, 2025, nearly 35 million shares were still authorized for repurchase. Management anticipates buying back between $600 million and $700 million in shares during the first quarter of 2026.

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