Bank OZK: A Modest Accumulation

by

Hodges Capital Management, a fund whose name suggests a fondness for both avian life and the meticulous arrangement of assets, recently made a rather quiet acquisition: 228,146 shares of Bank OZK. This equates to roughly $10.67 million, which, when you consider the sheer scale of the universe, is a statistically insignificant amount of money. (Though, admittedly, it’s still more than most people will see in a lifetime. A lifetime being, of course, a somewhat arbitrary unit of measurement based on the rotation of a minor planetary body around a medium-sized star.)

What Happened (Or, A Brief Pause in the Inevitable Heat Death of the Universe)

According to a filing with the Securities and Exchange Commission – a body dedicated to ensuring that everyone understands exactly how much money everyone else has, which, frankly, seems a bit excessive – Hodges Capital increased its holdings of Bank OZK in the fourth quarter. The purchase added $9.97 million to their existing position, a figure that, when viewed in the context of global debt, is…well, it’s there. The increase reflects both the transaction itself and the fluctuating whims of the market, a force as unpredictable as a caffeinated squirrel.

A Peek Inside the Portfolio (Or, What They’re Betting On)

As of late, Hodges Capital’s top holdings appear to be a curious mix of technological innovation and industrial resilience. Here’s a snapshot:

  • NASDAQ: NVDA: $39.60 million (3.44% of AUM)
  • NYSE: SN: $34.20 million (2.97% of AUM)
  • NASDAQ: WULF: $32.94 million (2.86% of AUM)
  • NYSE: CLF: $30.55 million (2.66% of AUM)
  • NYSE: TPL: $29.95 million (2.60% of AUM)

Bank OZK, as of February 10th, was trading at $50.55, a figure that represents a modest 2.43% increase over the past year. Sadly, it underperformed the S&P 500 by a full 12.0 percentage points. Which just goes to show, even in a rising tide, some ships are inexplicably filled with rubber ducks.

Bank OZK: A Brief Overview (Or, What They Actually Do)

Metric Value
Revenue (TTM) $1.70 billion
Net Income (TTM) $721.70 million
Dividend Yield 3.61%
Price (as of market close 2026-02-10) $50.55

Bank OZK is, in essence, a regional financial institution. It offers a range of banking products and services, including deposits, loans (for both real estate and businesses), and wealth management. It operates across several U.S. states, serving individuals, small businesses, and commercial real estate clients. Their revenue comes primarily from interest on loans and deposits, along with fees for various services. It’s a perfectly functional system, assuming you trust other people to keep track of your money. (A surprisingly large assumption, when you think about it.)

What This Means for Investors (Or, Why They Bought It)

Hodges Capital’s purchase of Bank OZK suggests a belief that steady, reliable operators can still thrive in a volatile economic climate. Bank OZK’s fourth-quarter net income slipped by 3.5% year-over-year, but full-year earnings remained essentially flat compared to 2024. Loans and deposits both grew by around 7.8%, and net interest income reached a record $1.59 billion. Management is confidently projecting another record earnings year in 2026. (Though, of course, projections are merely optimistic guesses dressed up in spreadsheets.)

The position in Bank OZK remains relatively modest compared to their larger holdings in more volatile stocks like Nvidia and Cleveland-Cliffs. This suggests a “ballast play” – a way to balance out the riskier parts of their portfolio. With $40.8 billion in assets and operations across nine states, Bank OZK offers exposure to commercial real estate and regional growth without excessive valuation. Long-term investors should monitor credit quality and loan mix, but consistent earnings and deposit growth are the kind of fundamentals that quietly drive compounding. (Which, when you consider the vastness of time, is the only thing that really matters.)

Read More

2026-02-12 22:16