Thousands of people read our recent article about how Bank OZK shares rose on its commercial real estate lending, and then nosedived on CRE write-offs.
For those of us who have been tracking the lending activity of OZK, formerly known as Bank of the Ozarks, the fact that the Arkansas-based lender has been leading the way in aggressive construction lending is hardly a surprise.
Last year, CrediFi conducted an analysis of $7.5 billion in commercial real estate loans originated by Bank OZK between 2012 and 2016.
We want to share with you the insider’s tale of how we figure out what financial institutions are up to, with this behind-the-scenes glimpse of our data analysis of OZK’s CRE lending:
What we found: The share of OZK’s CRE origination that was going to construction financing increased from 8% in 2013 to 29% in 2016.
How to find construction loans: To isolate financing designated for a specific purpose, such as construction or acquisition, we conduct a loan prospecting search and then filter by loan purpose. If we want to get a further breakdown, we can also filter further by loan structure (balance sheet, CMBS, Freddie, Fannie) and lender segment (bank, GSE, insurance company).
What we found: The size of OZK’s loan balance rose in that period, with CRE loans above $10 million constituting 38% of loans in the sample in 2012 – and 53% in 2016.
How to find loans originated by a specific lender:
Search by bank name and view their loans to see details about each loan including loan amount, origination date, address, city and state, property type and borrower.
What we found: OZK’s geographic reach had expanded significantly to states like New York and Florida, partly through strategic mergers and acquisitions.
How to find a lender’s corporate structure: Search for the lender’s name and view affiliates. Click on the names of the other entities in the corporate structure to find out more about them.
This breakdown of what lenders are up to helps us get a nice close look at specific institutions like Bank OZK and figure out what’s behind the buzz.