2024-02-01 19:46:37 ET
Summary
- Bank OZK shares have fallen this week as fears grow around potential real estate loan losses.
- OZK has shown strong deposit stability and has been aggressively growing, with deposits rising by over 25% from a year ago.
- The bank has a conservative approach to underwriting and strong asset coverage, limiting potential losses in its real estate portfolio.
Shares of Bank OZK ( OZK ) are still lower than a year ago despite rallying substantially off of their lows. OZK has underperformed the broader market even as it has continued to report solid results, due in part to fears around regional banks following Silicon Valley Bank’s failure. However, OZK has proven to be a strong player in the fight for deposits. Over the past week, shares have been hammered over 13% after New York Community Bank ( NYCB ) reported large reserves on its real estate portfolio. While OZK has outsized real estate exposure, this is an opportunity to buy shares....
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Bank OZK: Real Estate Fears Create Opportunity