- A large portion of costly deposits is scheduled to mature in the remainder of the year. The maturity will substantially reduce the deposit cost.
- Provision expense will likely remain subdued in the year ahead because of a high level of reserves for loan losses relative to actual loan losses.
- The loan portfolio size will likely face pressure from elevated pay-downs.
- The year-end target price suggests a high upside from the current market price. Further, Bank OZK is offering a modest dividend yield.
For further details see:
Bank OZK: Deposit Repricing, Provision Reversals To Boost Earnings