Lending reports

OZK Bank Reports Revenue of $132.4 Million

OZK Bank said Thursday its earnings per share fell 5% in the second quarter, but still beat expectations.

After markets closed, the Little Rock-based bank reported net income of $132.4 million, or $1.10 per share, for the quarter ended June 30, compared with $150.5 million, or $1.16 per share, the same period last year.

Eight analysts polled by Thomson Reuters had estimated earnings per share at $1.03 on average.

OZK Bank posted assets of $26.5 billion, down 2.3% from the second quarter of last year.

Shares of the bank rose 41 cents to close Thursday at $39.48 on the Nasdaq stock exchange. OZK Bank stock traded between $34.79 and $51.39 last year.

George Gleason, president and chief executive of Bank OZK, said in the earnings report that highlights included a third consecutive quarter of record loan issuance from the bank’s Dallas-based real estate specialty group.

Additionally, Gleason said Bank OZK has seen strong contributions from community banks and other lending teams, “reflecting the importance of organic growth and increased portfolio diversification in our long-term strategy.” “.

“Our strong capital and liquidity, disciplined credit culture and outstanding team position us well for the future,” Gleason said.

Total loans in the quarter increased 2.6% from the same quarter in 2021 to $18.72 billion. Deposits fell 3.5% to $19.98 billion.

Also during the quarter, Bank OZK repurchased approximately 3.7 million common shares for a total of $147.4 million.

The bank said that in the first 20 days of July it repurchased an additional $20 million of common stock, but expects its total purchases for the third quarter will not exceed $100 million. dollars.

When evaluating plans for future share buybacks, the bank said it considers factors such as its capital position; alternative uses of capital; liquidity; financial performance; share price; and regulatory requirements.

OZK Bank’s earnings report made no mention of a proposed $45 million settlement it reached in April in a class action lawsuit. The lead plaintiff – a UK pension fund – claimed in the lawsuit that the bank misled investors about two non-performing commercial property loans.

The bank’s October 2018 disclosure of its $45 million loan write-off sent Bank OZK’s share price plummeting.

A U.S. District Court judge for the Eastern District of Arkansas granted preliminary approval to the settlement in June and set a hearing for September 19.

The bank denies the allegations but declined to comment on the matter.

The case is Strathclyde Pension Fund v. Bank OZK, et al.

Charts showing OZK Bank second quarter information.