Bank OZK (OZK) stock is soaring 5.01% in intraday trading on Thursday, following the release of its first-quarter 2025 earnings report that surpassed analysts' expectations. The regional bank's strong performance was primarily driven by higher fee income and lower provisions for credit losses, despite a slight decline in net income.

Bank OZK reported earnings per share of $1.47 for Q1 2025, beating the Zacks Consensus Estimate of $1.42. While this represents a 2.6% year-over-year decline, investors were pleased with the overall results. The bank's net revenues reached $409.2 million, marginally up from the previous year and surpassing the consensus estimate of $398.8 million. Notably, non-interest income rose by 19.4% year-over-year to $34.7 million, contributing significantly to the positive outcome.

Other factors supporting the stock's rally include an increase in total loans, which grew 3.8% sequentially to $31.1 billion, and a 2.8% rise in total deposits to $31.9 billion. Additionally, the bank's credit quality showed improvement, with the ratio of non-performing loans decreasing by 2 basis points to 0.20%. While challenges such as a slight decline in net interest income and higher non-interest expenses persist, investors appear optimistic about Bank OZK's ability to navigate the current economic environment and capitalize on growth opportunities in its loan portfolio and secondary mortgage banking business.