Bank OZK of Little Rock (Nasdaq: OZK) on Thursday reported third-quarter net income of $128.3 million, down 1.5% from $130.3 million a year ago.
The bank, which posted record profits in 2021, has seen quarterly income decline on a year-over-over basis for three straight quarters in 2022. It said higher provisions for credit losses, which are treated as an expense, affected income in the most recent period. Estimated potential losses due to credit risk in the quarter were $39.8 million, making up the majority of the $51 million provision for the year so far. Credit conditions were better a year ago, when the bank reported a negative provision of $7.5 million.
Earnings in the quarter, on a per-share basis, were $1.08. That's up 8% from a year ago but below Wall Street expectations. The average estimate of four analysts surveyed by Zacks Investment Research was for earnings of $1.18 per share.
Pre-tax pre-provision net revenue in the quarter was $208.1 million, up 27.2% from $163.5 million a year ago.
Total loans were $19.51 billion at the end of the quarter, down 6.6% from the same period in 2021. Deposits climbed 1.5% to $20.40 billion.
The bank reported total assets of $26.23 billion, a 0.3% increase from $26.14 billion.
Shares of Bank OZK fell about 4% Thursday. For the year to date, shares are down more than 12%.
