Comes after company reports strong earnings
Shares in Bank of the Ozarks tumbled 8.5% yesterday after acknowledging that quality deal flow has slowed. Interestingly, CEO George Gleason said this after the Bank released strong earnings.
Be Smart: Bank of the Ozarks has become the go-to condo lender for developers in the city. Many in the industry question their excessive concentration in commercial real estate lending — a total of 80% — compared to a 22% average for typical banks. Half of those loans were for development projects.
The rebranding: The bank is changing its name to Bank OZK as it seeks to shed its label as a local Arkansas community bank. Despite its critics, the bank has become a force nationwide.
Old banking adage… “The lender who grows fastest is the lender who someday loses most.” With its rapid growth in recent years, the bank’s true fate will be revealed in the next downturn.