Bank OZK ( NASDAQ: OZK ) stock is rising 1.3% in after-hours trading after Q2 earnings beat the average analyst estimate, helped by its Real Estate Specialties Group's strong loan originations.
RESG posted its third straight quarter of record originations with $3.53B of loans originated, up from $3.14B in Q1. That contributed to an increase in the company's unfunded loan commitments to a record of $17.37B at June 30, 2022.
"Our results were highlighted by our third consecutive quarter of record RESG loan originations and solid contributions from Community Banking and other lending teams, reflecting the importance of organic growth and increased portfolio diversification in our long-term strategy," said Chairman and CEO George Gleason.
Q2 EPS of $1.10, beating the $1.02 consensus, rose from $1.02 in Q1 and fell from from $1.16 in the year-ago quarter.
Q2 provision for credit losses was $7.0M vs. $4.2M in Q1 and a benefit of $30.9M in Q2 2021.
Net interest income of $265.8M rose from $249M in Q1 and $240.7M in the year-ago quarter; net interest margin of 4.52% vs. 4.25% in the previous quarter and 3.95% in the year-ago period.
Bank OZK's ( OZK ) total noninterest expense of $109.3M rose from $107.7M in the prior quarter and $103.7M in the year-ago quarter. Salaries and employee benefits expense of $54.4M fell from $54.6M in Q1 and increased from $52.1M in Q2 2021.
Total loans were $18.74B at June 30, 2022 vs. $18.93B at March 31, 2022.
Deposits of $19.98B at June 30 fell from $20.3B at March 31.
During the quarter, the company repurchased ~3.7M shares of its common stock for a total of $147.4M.
Conference call on July 22 at 11:00 AM ET
Earlier, Bank OZK ( OZK ) GAAP EPS of $1.10 beats by $0.08, revenue of $292.11M beats by $4.93M.
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Bank OZK Q2 earnings beat consensus, fueled by strong real estate loan originations