Bank OZK (OZK) shares are soaring 5.01% in intraday trading on Thursday following the release of its better-than-expected first-quarter 2025 earnings report. The regional bank's strong performance, driven by higher fee income and lower provisions, has ignited investor optimism.

Bank OZK reported earnings per share of $1.47 for Q1 2025, comfortably beating the Zacks Consensus Estimate of $1.42. While this figure represents a slight 2.6% year-over-year decline, it still impressed investors given the challenging economic environment. The bank's net revenues of $409.2 million also surpassed analyst expectations, showing a marginal increase from the previous year.

Key factors contributing to the positive market reaction include a significant 19.4% year-over-year increase in non-interest income and lower provisions for credit losses, which declined by 10.5%. Additionally, the bank reported growth in both loans and deposit balances, with total loans up 3.8% sequentially to $31.1 billion and total deposits rising 2.8% to $31.9 billion. These metrics suggest robust underlying business performance and improved asset quality, offsetting concerns about a slight contraction in net interest margin and higher non-interest expenses.