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Bank OZK Posts Second Straight Quarter of Record Profit

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Bank OZK of Little Rock on Thursday reported its second consecutive quarter of record profit.

Net income for the period ending June 30 totaled $167.9 million, up 26.9% from $132.4 million in the same quarter a year ago. On a per share basis, earnings came to $1.47.

The results narrowly missed Wall Street expectations. The average estimate of six analysts surveyed by Zacks Investment Research was for earnings of $1.48 per share.

Pre-tax, pre-provision net revenue was $259.5 million, up 41.9% from $182.8 million in the same quarter a year ago.

The bank’s net interest margin dipped on a quarterly basis from 5.54% to 5.32%, but was still higher than the 4.52% margin reported in the second quarter of 2022.

The record quarter came despite rising costs in nearly every reported category, including employee pay, advertising, and software and data processing, as well as significantly higher provisions for credit losses, which are treated as an expense. Non-interest expenses totaled $129.4 million, up 18.4% from $109.3 million. The bank set aside $41.8 million for credit losses in the quarter, up from $7 million a year ago.

While other Arkansas banks have seen deposits slide, Bank OZK continues to see growth in the category. The bank reported $23.98 billion in deposits, increasing for a fourth straight quarter and 20% higher than a year ago.

Bank OZK finished the second quarter with $23.61 billion in loans, up 26% from a year ago.

Total assets were $30.76 billion, up 18.7% from $25.92 billion in the second quarter of 2022.

Shares of the company were down about 5% Wednesday morning. Year to date, shares were up 7%.

Bank OZK has more than 240 offices across Arkansas, Georgia, Florida, North Carolina, Texas, New York, California and Mississippi.

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