GENERAL

Net income available to common stockholders for Bank of the Ozarks, Inc. (the "Company") was $9.5 million for the second quarter of 2009, a 10.4% increase from net income available to common stockholders of $8.6 million for the comparable quarter in 2008. Diluted earnings per common share were $0.56 for the quarter ended June 30, 2009, a 9.8% increase from $0.51 for the quarter ended June 30, 2008. For the six months ended June 30, 2009, net income totaled $18.8 million, a 14.8% increase from net income of $16.4 million for the first six months of 2008. Diluted earnings per share for the first six months of 2009 were $1.11 compared to $0.97 for the comparable period in 2008, a 14.4% increase.

The Company's annualized return on average assets was 1.25% for the second quarter of 2009 compared to 1.13% for the second quarter of 2008. Its annualized return on average common stockholders' equity was 14.29% for the second quarter of 2009 compared to 16.65% for the second quarter of 2008. The Company's annualized return on average assets was 1.20% for the first six months of 2009 compared to 1.12% for the comparable period of 2008. Its annualized return on average common stockholders' equity was 14.24% for the first six months of 2009 compared to 15.99% for the comparable period of 2008.

Total assets were $2.96 billion at June 30, 2009 compared to $3.23 billion at December 31, 2008. Loans and leases were $2.00 billion at June 30, 2009 compared to $2.02 billion at December 31, 2008. Deposits were $2.13 billion at June 30, 2009 compared to $2.34 billion at December 31, 2008.

Common stockholders' equity was $261 million at June 30, 2009 compared to $252 million at December 31, 2008. Book value per common share was $15.45 at June 30, 2009 compared to $14.96 at December 31, 2008. Changes in common stockholders' equity and book value per common share reflect earnings, dividends paid, stock option and warrant transactions and changes in unrealized gains and losses on investment securities available for sale.

Annualized results for these interim periods may not be indicative of results for the full year or future periods.

ANALYSIS OF RESULTS OF OPERATIONS

The Company is a bank holding company whose primary business is commercial banking conducted through its wholly-owned state chartered bank subsidiary - Bank of the Ozarks (the "Bank"). The Company's results of operations depend primarily on net interest income, which is the difference between the interest income from earning assets, such as loans, leases and investments, and the interest expense incurred on interest bearing liabilities, such as deposits, borrowings and subordinated debentures. The Company also generates non-interest income, including service charges on deposit accounts, mortgage lending income, trust income, bank owned life insurance ("BOLI") income, other charges and fees and gains and losses on investment securities and from sales of other assets.

The Company's non-interest expense consists of employee compensation and benefits, net occupancy and equipment and other operating expenses. The Company's results of operations are significantly impacted by its provision for loan and lease losses and its provision for income taxes. The following discussion provides a comparative summary of the Company's operations for the three and six months ended June 30, 2009 and 2008 and should be read in conjunction with the consolidated financial statements and related notes presented elsewhere in this report.

Net Interest Income

Net interest income is analyzed in the discussion and the following tables on a fully taxable equivalent ("FTE") basis. The adjustment to convert certain income to a FTE basis consists of dividing federal tax-exempt income by one minus the Company's statutory federal income tax rate of 35%. The FTE adjustments to net interest income were $3.1 million and $2.8 million, respectively, for the quarters ended June 30, 2009 and 2008 and $7.2 million and $4.5 million, respectively, for the six months ended June 30, 2009 and 2008. No adjustments have been made in this analysis for income exempt from state income taxes or for interest expense deductions disallowed under the provisions of the Internal Revenue Code as a result of investment in certain tax-exempt securities.

Net interest income for the second quarter of 2009 increased 26.4% to $33.3 million compared to $26.4 million for the second quarter of 2008. Net interest income increased 36.2% to $67.8 million for the six months ended June 30, 2009 compared to $49.8 million for the six months ended June 30, 2008. Net interest margin was 4.80% during the second quarter of 2009 compared to 3.77% during the second quarter of 2008. Net interest margin was 4.76% during the first six months of 2009 compared to 3.73% during the first six months of 2008.

The growth in net interest income for the second quarter of 2009 compared to the comparable period in 2008 was a result of the improvement in the Company's net interest margin, which increased 103 basis points ("bps"), partially offset by a decline in the Company's average earnings assets, which decreased 1.0%. The growth in net interest income for the first six months of 2009

compared to the same period in 2008 was due to the improvement in the Company's net interest margin, which increased 103 bps, and growth in the Company's average earning assets, which increased 7.0%. The Company's improvement in its net interest margin for both the second quarter and the first six months of 2009 resulted from a combination of factors including favorable yields achieved on certain tax-exempt securities purchased during the fourth quarter of 2008 and the first quarter of 2009 and improvement in the Company's spread between yields on loans, leases and other investment securities and rates paid on deposits and other funding sources.

Yields on average earning assets decreased 35 bps in the second quarter of 2009 and 44 bps for the first six months of 2009 compared to the same periods in 2008. This decrease was due primarily to a 78 bps decline for the quarter and a 94 bps decline for the first six months of 2009 in loan and lease yields, which was partially offset by a 73 bps increase for the quarter and an 80 bps increase for the first six months of 2009 in the aggregate yield on the Company's investment securities.

The decrease in loan and lease yields was due primarily to the repricing of the Company's loan and lease portfolio at lower interest rates during 2008 and the first six months of 2009. Beginning in September 2007 and continuing through December 2008, the Federal Open Market Committee ("FOMC") decreased its federal funds target rate a total of 500 bps, resulting in many of the Company's variable rate loans repricing to lower rates throughout 2008 and the first six months of 2009. Additionally, the Company's newly originated and renewed loans and leases generally priced at lower rates throughout 2008 and the first six months of 2009 as a result of these FOMC interest rate decreases.

The increase in the Company's aggregate yield on its investment securities was the result of an increase in yield on both taxable and tax-exempt investment securities in 2009 compared to 2008 and a shift in the composition of the portfolio to include a higher proportion of tax-exempt investment securities with generally higher FTE yields than the Company's taxable investment securities.

The decrease in average earning asset yields discussed above was more than offset by a 135 bps decrease for the quarter and a 144 bps decrease for the first six months of 2009 in the rates on average interest bearing liabilities compared to the same periods in 2008, resulting in the Company's overall increase in net interest margin. The decrease in the rates on interest bearing liabilities was primarily attributable to a 164 bps decrease for the quarter and a 167 bps decrease for the first six months of 2009 in the rates of interest bearing deposits, the largest component of the Company's interest bearing liabilities, compared to the same periods in 2008. This decrease in rates on interest bearing deposits was attributable to (i) the FOMC interest rate decreases, which resulted in decreases in rates paid on both time deposits and savings and interest bearing transaction deposits as such deposits were renewed or repriced and (ii) the decrease in the Company's aggregate time deposits, which generally pay higher rates than its other interest bearing deposits, as a percent of total interest bearing deposits.

The Company's other funding sources include (i) repurchase agreements with customers ("repos"), (ii) other borrowings, comprised primarily of Federal Home Loan Bank of Dallas ("FHLB") advances, and, to a lesser extent, Federal Reserve Bank ("FRB") borrowings and federal funds purchased, and (iii) subordinated debentures. The rates paid on repos decreased 49 bps for the quarter and 90 bps for the six months ended June 30, 2009 compared to the same periods in 2008, primarily as a result of decreases in the FOMC federal funds target rate and other rate indices. The rates paid on the Company's other borrowings increased 27 bps for the quarter but decreased eight bps for the six months ended June 30, 2009 compared to the comparable periods in 2008. The increase for the quarter is primarily due to a larger percentage of the Company's other borrowings comprised of higher cost, long-term, fixed rate FHLB advances whereas the decrease for the six months is principally due to lower interest rates on short-term FHLB advances, partially offset by a decline in such short-term advances in 2009 compared to 2008. The rates paid on the subordinated debentures, which are tied to a spread over the 90-day London Interbank Offered Rate ("LIBOR") and reset periodically, declined 162 bps for the quarter and 233 bps for the six months ended June 30, 2009 compared to the same periods of 2008 as a result of the decrease in 90-day LIBOR.

                     Analysis of Net Interest Income - FTE



                                           Three Months Ended            Six Months Ended
                                                June 30,                     June 30,
                                           2009           2008          2009          2008
                                                       (Dollars in thousands)
 Interest income                         $  42,586      $ 45,672      $ 87,849      $ 90,490
 FTE adjustment                              3,060         2,767         7,228         4,460

 Interest income - FTE                      45,646        48,439        95,077        94,950
 Interest expense                           12,324        22,069        27,252        45,137

 Net interest income - FTE               $  33,322      $ 26,370      $ 67,825      $ 49,813


 Yields on earning assets - FTE               6.57 %        6.92 %        6.67 %        7.11 %
 Rates on interest bearing liabilities        1.99          3.34          2.13          3.57
 Net interest margin - FTE                    4.80          3.77          4.76          3.73

       Average Consolidated Balance Sheets and Net Interest Analysis-FTE



                                                                           Three Months Ended June 30,                                                Six Months Ended June 30,
                                                                    2009                                 2008                                 2009                                 2008
                                                         Average     Income/    Yield/        Average     Income/    Yield/        Average     Income/    Yield/        Average     Income/    Yield/
                                                         Balance     Expense     Rate         Balance     Expense     Rate         Balance     Expense     Rate         Balance     Expense     Rate
                                                                                                                   (Dollars in thousands)
ASSETS
Earning assets:
Interest earning deposits and federal funds sold       $       660   $      2     1.52 %    $       338   $      3     3.50 %    $       535   $      5     2.07 %    $       354   $      7     3.99 %
Investment securities:
Taxable                                                    360,804      5,286     5.88          397,700      5,445     5.51          381,982     10,899     5.75          399,173     11,135     5.61
Tax-exempt - FTE                                           421,344      8,732     8.31          432,395      7,881     7.33          482,069     20,627     8.63          330,629     12,685     7.72
Loans and leases - FTE                                   2,002,257     31,626     6.34        1,983,749     35,110     7.12        2,007,940     63,546     6.38        1,955,167     71,123     7.32

Total earning assets - FTE                               2,785,065     45,646     6.57        2,814,182     48,439     6.92        2,872,526     95,077     6.67        2,685,323     94,950     7.11
Non-interest earning assets                                269,967                              257,390                              272,650                              243,750

Total assets                                           $ 3,055,032                          $ 3,071,572                          $ 3,145,176                          $ 2,929,073