Reported 4 months ago
Bank OZK's shares hit a six-month low following a double downgrade by Citigroup, highlighting worries over two specific loans related to the commercial real estate sector. Citi raised issues regarding potential deterioration in the loans for a San Diego life science construction project and an Atlanta multi-use project, totaling $1.05 billion, due to factors like lack of leasing interest and rejected tenants. These projects make up a significant portion of Bank OZK's non-purchased loans, leading to a 16% stock decline to $38.59 and concerns about $800 million in losses from the bank's market cap.
Source: YAHOO