Bank of the Ozarks’ stock price dropped about 12 percent today, to $41.74 in a recent trade, on news of the resignation of Dan Thomas as vice chairman and president of the real estate specialties group. Reports by both Reuters and the Motley Fool suggested that the bank’s construction and development loan portfolio might have something to do with events.

Stephens Inc. downgraded the stock from “overweight” to “equal weight” on what an analyst said was concern about the sustainability of growth.

Advertisement

The bank announced Thomas’ departure in a regulatory filing and said his departure should have no material impact on the company. Nonetheless, investors seemed concerned, though at least one analyst said the drop presented a buying opportunity.

Thomas had been at the bank 14 years.

Advertisement

According to Reuters, the real estate group accounted for 70 percent of the bank’s loans, 50 percent of revenue and 61 percent of loan growth the last year. Motley Fool noted that construction/land development loans had grown from $1.5 billion at the end of 2014 to $5.3 billion at the end of 2016.

The article said 36 percent of the bank’s loan portfolio was in such loans, a higher percentage than other regional banks.

Advertisement

Be a part of something bigger

As a reader of the Arkansas Times, you know we’re dedicated to bringing you tough, determined, and feisty journalism that holds the powerful accountable. For 50 years, we've been fighting the good fight in Little Rock and beyond – with your support, we can do even more. By becoming a subscriber or donating as little as $1 to our efforts, you'll not only have access to all of our articles, but you'll also be helping us hire more writers to expand our coverage and continue to bring important stories to light. With over 63,000 Facebook followers, 58,000 Twitter followers, 35,000 Arkansas blog followers, and 70,000 daily email blasts, it's clear that our readers value our great journalism. Join us in the fight for truth.

Previous article Bennett named to lead Historic Arkansas Museum Next article Turner Grain failure takes criminal turn with hot check charges