Connect with us

Financing

Bank OZK reports Q1 earnings

George Gleason, chairman and CEO of Bank of the Ozarks
(Credit: Arkansas Business / Karen E. Segrave)

Bank OZK’s net income for the quarter was $11.9 million, down almost 90% from Q1 2019. Revenue fell 6% to slightly under $300 million. The Arkansas-based bank tried reassuring investors that its speculative real estate loan portfolio – Real Estate Specialties Group – is holding up well by pointing to “the quality of the credit and quality of the assets.”

  • Be Smart: The specialties group accounted for 59% of the funded balance of non-purchased loans as of March 31, 2020. Time will tell how their extensive construction lending handles this downturn. Leadership pointed to their low LTV ratios on the call, which are based on outdated valuations: 38% on their hospitality portfolio, 40% on their office portfolios, 45% on their condo portfolio.

Continue Reading
To Top