Little Rock-based Financial institution OZK, which is celebrating its 25th anniversary as a publicly traded firm, introduced decrease earnings on Thursday (July 21) versus a 12 months in the past, primarily resulting from a rise in its allowance for credit score losses.

Banks sometimes enhance their credit score loss reserves when financial circumstances equivalent to rising rates of interest or recessionary pressures convey further threat to mortgage portfolios.

Financial institution OZK reported second quarter web revenue of $132.four million, a 12% lower from one 12 months in the past when the monetary establishment posted web revenue of $150.5 million within the second quarter. Diluted earnings per frequent share for the quarter ended June 30, 2022 have been $1.10, a 5.2% lower from $1.16 for the quarter ended June 30, 2021.

The financial institution’s provision for credit score losses was $7.zero million for the second quarter and $11.2 million for the primary six months of 2022 in comparison with adverse provision for credit score losses of $30.9 million for the second quarter and $62.5 million for the primary six months of 2021.

“We’re happy to report our glorious outcomes for the second quarter of 2022,” stated Financial institution OZK Chairman and CEO George Gleason. “Our outcomes have been highlighted by our third consecutive quarter of report RESG [real estate services group] mortgage originations and strong contributions from group banking and different lending groups, reflecting the significance of natural progress and elevated portfolio diversification in our long-term technique. Our sturdy capital and liquidity, disciplined credit score tradition and excellent workforce have us properly positioned for the longer term.”

Different quarterly monetary highlights included:

• Complete loans have been $18.74 billion at June 30, 2022, a 2.6% enhance from $18.27 billion at June 30, 2021;
• Deposits have been $19.98 billion at June 30, 2022, a 3.5% lower from $20.71 billion at June 30, 2021; and
• Complete property have been $25.92 billion at June 30, 2022, a 2.6% lower from $26.61 billion at June 30, 2021.

Shares of Financial institution OZK (NASDAQ: OZK) closed Thursday at $39.48. The corporate’s inventory has traded between a 52-week low of $34.79 and a 52-week excessive of $51.39.