Read more on this subject: Economy – Economics USA
News Story Source: https://www.zerohedge.com, by Tyler Durden
In what may be the deadest canary in the commercial real estate coal mine yet, Bank OZK shares have plunged 26% today after the bank reported abysmal third-quarter earnings that trailed expectations, with net income tumbling but what caught traders' attention was two commercial real estate charge-offs of $45.5 million on the bank's Real Estate Specialties Group (RESG) credits for unrelated projects in South and North Carolina.
The Little Rock-based regional bank, with just over $22 billion in assets, also reported that net income declined 23% to $74.2 million in its third quarter from the same period in 2017 due to these write-offs. Bank OZK's earnings have been closely monitored by analysts since it is such an active real estate lender. The bank reported that the two write-offs during the third quarter were in its Real Estate Specialties Group ("RESG") portfolio and were related to properties in South Carolina and North Carolina from loans originated in 2007 a
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