Bank OZK Prepares For ‘Credit Deterioration’ While Growing CRE Loan Book

Bank OZK posted growing net charge-offs in the second quarter as its pool of nonperforming loans grew to $81M, its highest volume since at least 2009. But the Arkansas-based bank, which reported its second-quarter earnings on Wednesday and held its earnings call Thursday morning, continues to aggressively expand its real estate lending portfolio, the majority of which continues to perform. The firm’s real estate loan portfolio grew $670M in the last three months to $28.5B, and its net interest income in the second quarter was a record $388M.  

Bank OZK (NASDAQ: OZK)
Alan Jessup | Chief Lending Officer

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