2023-07-20 16:39:06 ET
Bank OZK ( NASDAQ: OZK ) Q2 earnings, posted Thursday, topped the average analyst estimate as the company logged records in preprovision net revenue, loans and deposits.
Still, the company's stock fell 2.3% in after-hours trading.
Q2 EPS of $1.47 , exceeding the $1.43 consensus and achieving a record high, rose from $1.41 in the previous quarter and from $1.10 in the year-ago period.
Q2 provision for credit losses was $41.8M, compared with $35.8M in Q1 and $7.0M in Q2 2022.
Net interest income rose to $356.8M, beating the Visible Alpha consensus of $345.4M, from $344.9M in the prior quarter and from $265.8M in Q2 2022.
Pretax preprovision net revenue of $259.5M climbed from $246.4M in Q1 and $182.8M in Q2 2022.
Total noninterest expense of $129.4M rose from $126.2M in Q1 and $109.3M in Q2 2022. Salaries and employee benefits expense of $65.2M vs. $63.2M in the prior quarter and $54.4M a year ago.
Deposits rose to $23.9B at June 30, 2023 from $22.8B at March 31.
Total loans were $23.61B at June 30, 2023 compared with $22.06B at March 31.
Bank OZK's ( OZK ) Real Estate Specialties Group (RESG) originated $1.41B of loans during the quarter and $3.22B for the last four quarters.
The company said it has seen a moderate increase in the pipeline of new RESG origination opportunities. "This is causing us to moderately increase our expectations for RESG origination volume for the full year of 2023, which we now expect to be at or somewhat above the level achieved in 2021," the company said.
In its revised expectations for RESG loan repayments for 2023, Bank OZK ( OZK ) now expects it to be about lin line with its average annual repayments over the last five years.
Conference call on July 21 at 11:00 AM ET.
More on Bank OZK:
- Bank OZK: Stable Profit Trends Following the Banking Fallout, Still a Buy
- Previous income statements from Bank OZK
- SA's screener for Regional Bank stocks
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Bank OZK Q2 earnings beat consensus, preprovision net revenue hits record