Investor Presentaiton

Our Core Spread and Cost of Interest Bearing Deposits ("COIBD") During the quarter just ended, our core spread, which is how we describe the difference between our yield on non-purchased loans and our COIBD, was 5.11%, a decrease of 44 bps and 62 bps from the second quarter of 2023 and third quarter of 2022, respectively. Core Spread 7.00% 6.00% 5.59% 5.73% 5.08% 5.14% 5.26% COIBD 6.05% 5.87% 5.55% 5.11% 5.00% 3.48% 4.00% 2.92% 3.00% 2.20% 1.33% 2.00% 0.59% 1.00% 0.31% 0.24% 0.23% 0.29% 0.00% 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 Yield on Non- 5.39% 5.83% purchased loans 5.37% 5.55% 6.32% 7.38% 8.07% 8.47% 8.59% COIBD 0.31% 0.24% 0.23% Core Spread 5.08% 5.59% 5.14% 0.29% 5.26% 0.59% 1.33% 2.20% 2.92% 3.48% 5.73% 6.05% 5.87% 5.55% 5.11% Over the last six quarters since the Fed started increasing the Fed funds target rate, our non-purchased loan yields increased 322 bps while our COIBD increased 325 bps, resulting in a cumulative decrease in our core spread of 3 bps. Over that same period, our net interest margin increased 81 bps primarily due to a change in the mix of our average earning assets, among other factors. During the last three quarters, our COIBD increased more than our yield on non-purchased loans, as deposit rates began to catch up with changes in variable-rate loan yields. Assuming that the Fed is at or near the end of its tightening cycle, we expect our COIBD will continue to increase in the coming quarters at a faster rate than increases, if any, in our loan yields, resulting in further decreases in our core spread and net interest margin. 30 Bank OZK

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