OZK
Bank OZK Shrinks Real Estate Exposure as Peers Ramp Up
Article Summary
HOLD- Bank OZK (NYSE: BAK) reduced real estate loans to 47% of its portfolio in Q2 2026, down from 52% in Q1, with foreclosures concentrated in office and life sciences assets and nonperforming assets doubling year-over-year.
- The Arkansas-based lender cut loan sizes and tightened underwriting as elevated rates continued pressuring construction lending, with Q2 originations landing at $1B, the lowest level in five years, and repayments outpaced new loans, with $2.9B in paydowns versus $1.6B in the previous quarter.
- Charge-offs rose to 0.69% of the loan book, with non-performing assets up to 1.42% of total assets, with the bank expecting repayments to remain elevated for at least 18 more months.
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Growth Stock Scoring Breakdown
| METRIC | VALUE | WEIGHT | ANALYSIS |
|---|---|---|---|
| Sales Growth TTM ? | 0.7% | 25% | 20.0 ptsMinimal (0.7%) - Very weak |
| EPS Growth Next 5Y ? | 4.5% | 25% | 10.0 ptsVery Weak (4.5%) - Minimal expectations |
| Target Price Upside ? | 5.9% | 20% | 35.0 ptsBelow Screener (5.9%) - Target: $53.89 vs Current: $50.90 |
| Gross Margin % ? | — | 15% | 40.0 ptsNo Gross Margin Data |
| Drawdown from 52-Wk High ? | -5.1% | 15% | 20.0 ptsBarely a Dip (-5.1%) - Near recent highs |
Disclaimer: This rating is for informational purposes only and is not financial advice.
All data sourced from Finviz.
Always conduct your own research and consult with a financial advisor before making investment decisions.
Past performance does not guarantee future results.
About OZK
- Bank OZK operates as a full-service Arkansas state-chartered bank that provides retail and commercial banking services.
- The company provides deposit services, including non-interest-bearing checking, interest bearing transaction, business sweep, savings, money market, individual retirement, and other accounts, as well as time and reciprocal deposits.
- It offers trust and wealth services, such as personal trusts, custodial accounts, investment management accounts, and retirement accounts; corporate trust services that include trustee, paying agent and registered transfer agent services, and other related services; and treasury management services, which include automated clearing house, wire transfer, current and prior day transaction reporting, wholesale lockbox, remote deposit capture, automated credit line transfer, reconciliation, positive pay, commercial card, and other services, as well as zero balance and investment sweep accounts.
- In addition, the company provides real estate, consumer, small business, indirect recreational vehicle and marine, equipment, agricultural, commercial and industrial, government guaranteed, lines of credit, homebuilder, and housing loans; lender and structured, business aviation, and subscription financing services; and mortgage and other lending products.
- The company was formerly known as Bank of the Ozarks and changed its name to Bank OZK in July 2018.
- Bank OZK was founded in 1903 and is headquartered in Little Rock, Arkansas.