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to pick up activity from qualified borrowers looking for a bank that will work with them.
“They’re really big, chunky loans.
They’re construction development
loans, which are much, much larger
than any bank with a [similarly] sized
balance sheet would take.”
2024 may be one such environment. While there
are still banks competing against Bank OZK, others have pulled back due to earnings weakness, interest rate risk, credit issues or low capital levels.
The Naysayers
Gleason knows regulators, short sellers and the
industry are watching Bank OZK to see if it can
continue dodging the shortfalls that have befallen
hundreds of banks before it. Scouten, for his part,
Benjamin Gerlinger / Citigroup
understands why people are negative on the bank
after all this time, even if they’ve been repeatedly
proven wrong. He just thinks they should consider
updating their thesis.
“It’s been the same thesis for seven years now,”
manager and that his thought process is “worthy
he says. “At some point, you just have to give cred-
of respect” from both admirers and critics.
it to the management team that they’ll continue to
“That sort of approach in banking draws a lot
do the things that drive profitability.”
on cognitive ability and a willingness and ability to
Bank OZK sets itself apart in the industry as
understand complex situations,” he says. “I think
one of the most active managers of the risks it
a bunch of people would agree with me here, you
takes — and makes money for doing it. It does
want Gleason doing that. You don’t necessarily
this in the face of skepticism that these risks can
want guys who come up the ranks from business
be managed or that the bank is managing them as
school.”
well as it says it is.
Piper Sandler’s Scouten saw Gleason’s portfo-
“We try to let extraneous things be extraneous
lio management approach when Gleason person-
things,” Gleason says. “We focus on our business
ally managed the book of assets that Bank OZK
and our customers. … If you take care of your
acquired in FDIC-assisted deals. He recalls that
customers, you’re going to put up good results. If
Gleason knew the details of hundreds of these
you put up good results, you’re going to take care
credits. “The guy’s mind is insane,” he says.
of your shareholders. So, if people are crazy on
Gleason doesn’t have a target asset size in mind
the short side for a little while and have a negative
for Bank OZK, which falls squarely within the re-
thesis, that’s on them. Just keep producing, keep
gional bank space and misses the heightened scru-
delivering the results, and you win in the long run.”
tiny that regulators apply to bigger banks. There
have been years when the bank hasn’t grown be-
Kiah Lau Haslett is the banking & fintech editor at
cause competition pulled pricing to levels below
Bank Director.
the bank’s standards. And there are times when
the rest of industry has pulled back, nursing
wounds inflicted during more exuberant times or
rebuilding capital — that’s when Bank OZK likes
