Tag - OZRK

Greenbrier Companies Inc (Nasdaq:GBX), Wright Express Corp (Nasdaq:WXS) and Yucheng Technologies Ltd (Nasdaq:YTEC) are among the biggest percentage losers in Friday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Jones Apparel Group Inc (Nasdaq:JNY), BPZ Resources Inc (Nasdaq:BPZ), Thermadyne Holdings Corp (Nasdaq:THMD), Taylor Capital Group Inc (Nasdaq:TAYC), Bank of the Ozarks Inc (Nasdaq:OZRK) and Cascade Bancorp (Nasdaq:CACB).

For a bank, achieving record profits requires delicate balance: one slip and into the swamp of defaults, bankruptcies and frozen credit you go. Tiptoeing past the morass is Bank of the Ozarks (Nasdaq:OZRK), which just posted new highs in net income and earnings per share.

Headquartered in Little Rock, Ark., Bank of the Ozarks reported record net income of $9 million in the third quarter through September, up 7.2% from the previous year. Earnings per share were a record $0.53, up 6%. Dividends for the bank, with market capitalization of $479 million, yield 1.8%.

Standout results, to be sure. But Bank of the Ozarks still needs to step carefully: real estate development and construction loans pose a risk, as they do for many regional banks. Pushed out of the residential mortgage market by other lenders, these banks turned to commercial real estate loans in recent years. As yet, write-downs of commercial real estate construction loans haven’t come close to matching what remains on the books. These loans also are not targeted by the $700 billion bank bailout, which is aimed at relieving those who meddled in faulty mortgage loans and tangled derivative trades.

To some investors, construction loans are the next unmortared block waiting to fall onto the economy. Bank of the Ozarks has loans and leases of $2.06 billion, up 13.2% from a year ago, and these include a lot of construction and development loans. At the end of December, real estate loans were 82% of total loans and leases, and . . .

Targanta Therapeutics Corp. (Nasdaq:TARG), Westport Innovations Inc. (Nasdaq:WPRT) and Superior Bancorp (Nasdaq:SUPR) are among the biggest percentage gainers in Wednesday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Heritage Financial Corp. (Nasdaq:HFWA), BankAtlantic Bancorp Inc. (Nasdaq:BBX), Bank of the Ozarks Inc. (Nasdaq:OZRK), UAL Corp. (Nasdaq:UAUA), LSB Corp. (Nasdaq:LSBX) and Gladstone Commerical REIT (Nasdaq:GOOD).

Here are the biggest percentage gainers among small caps:

UAL Corp. (Nasdaq:UAUA), Canadian Solar Inc. (Nasdaq:CSIQ) and A Power Energy Generation Systems Ltd. (Nasdaq:APWR) are among the most actively traded companies in Wednesday's trading among companies with market capitalizations under $1 billion.

Also included among the results: American Superconductor Corp. (Nasdaq:AMSC), Willis Lease Finance Corp. (Nasdaq:WLFC), Solarfun Power Holdings Co Ltd (Nasdaq:SOLF), Epicor Software Corp. (Nasdaq:EPIC), Bank of the Ozarks Inc. (Nasdaq:OZRK) and Ceradyne Inc. (Nasdaq:CRDN).

Here are the most actively traded companies among small caps:

Small-cap stocks plunged shortly after Friday’s opening, showed resilience during the first hour of trading but have exhibited a downward trend in afternoon trading. The uncertainty surrounding Fannie Mae (NYSE:FNM) and Freddie Mac (NYSE:FRE) combined with record-high crude oil prices have spurred a sell-off today. At 2:17 p.m. ET, the Russell 2000 (NYSE:IWM) was down 2.07, or 0.31%, at 668.37.

Investors responded tepidly to Treasury Secretary Henry Paulson’s short statement that the U.S. government is committed to “supporting Fannie Mae and Freddie Mac in their current form as they carry out their important mission.”

Fannie Mae has fallen some 24% this afternoon, and similar losses were pinned on Freddie Mac on high volume. Selling fury was fueled overnight by an article in the New York Times suggesting the government was considering a takeover of the embattled mortgage lending giants as the housing slump and credit crisis wallop the firms.

The freefall in federally chartered corporations, or GSEs, spilled over to the rest of the financial sector, with large caps such as Wachovia Corp. (NYSE:WB) down 9%, Merrill Lynch down 5% and Lehman Bros. (NYSE:LEH) off 15% in afternoon trading.

“Retail and credit issues sparked selling Thursday and remain a concern today. Volatility is high right now,” Nick Kalivas, vice president of financial research with MF Global, told SmallCapInvestor.com in an email interview. “I think FNM and FRE are vulnerable to further losses, but the market is thinking that the government will aid the GSEs in some way and keep the financial system whole.”

Small caps were able to outperform large caps during Thursday’s bounce, but Kalivas said the move was powered more by a recovery in oil and natural gas that sparked money pouring back into small-cap energy firms. “I think it is more a beta trade or a sector trade than a sign of the market’s overall health. I’m not reading . . .

Chemgenex Pharmaceuticals (Nasdaq:CXSP), Security Bank Corp (Georgia) (Nasdaq:SBKC) and Bank of the Ozarks Inc (Nasdaq:OZRK) are among the biggest percentage gainers in Friday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Vanda Pharmaceuticals Inc (Nasdaq:VNDA), Jazz Pharmaceuticals Inc (Nasdaq:JAZZ), Bank of Commerce Holdings (California) (Nasdaq:BOCH), National Coal Corp (Nasdaq:NCOC), First California Financial Group Inc (Nasdaq:FCAL) and Somanetics Corp (Nasdaq:SMTS).

Here are the biggest percentage gainers among small caps:

Small caps are taking a beating in Friday’s mid-session trading, as crude oil prices surged and credit jitters prompted a broad sell-off in the financial sector. At 12:04 p.m. ET, the Russell 2000 (NYSE:IWM) was down 10.85, or 1.47%, at 726.98.

Small-cap investors tried to rally in the third hour of trading but met resistance at the 730 notch. After the brief resurgence, the small-cap slide is continuing into the afternoon session.

Merrill Lynch (NYSE:MER) started off the selling frenzy after cutting its estimates for regional banks. Rival investment banks Goldman Sachs (NYSE:GS) and JP Morgan (NYSE:JPM) were both in the red in midday trading as well. MER is down 3.9%, GS has fallen about 1% and JPM is off 0.4%.

Crude oil futures have rebounded from the largest one-day decline in about three months. In recent trading, crude has climbed $3.29 to $135.22 a barrel. The rebound in crude prices was accompanied by a falling U.S. dollar, which is down against both the euro and the yen.

Broad market sectors attracting sellers today were airlines, computer storage devices, plastics and rubber, casinos, auto and truck manufacturers, audio and video equipment and computer peripherals. Sectors on the upside included school services, savings and loans banks, gold and silver and oil well services and equipment companies.

Bank of the Ozarks, Inc. (Nasdaq:OZRK) reaffirmed guidance this morning after a fresh wave of credit concerns resurfaced this week from the financial sector. The regional bank said it is on track for 2008, that it is “well capitalized” and has no present plans to raise additional equity capital.

Shares gained 8%, or $1.21, to $17 in pre-market trading. For detailed price information and recent news stories about Bank of the Ozarks, click OZRK.    

Anchor Bancorp of Wisconsin Inc (Nasdaq:ABCW), First California Financial Group Inc (Nasdaq:FCAL) and Preferred Bank (Nasdaq:PFBC) are among the new 52-week lows in Thursday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Bank of the Ozarks Inc (Nasdaq:OZRK), C&F  Financial Corp (Nasdaq:CFFI), Banner Corp (Nasdaq:BANR), Providence Service Corp (Nasdaq:PRSC), City Bank (Nasdaq:CTBK) and Cascade Financial Corp (Nasdaq:CASB).

Here are the new 52-week lows among small caps:

Anchor Bancorp of Wisconsin Inc (Nasdaq:ABCW), Firstbank Corp (Nasdaq:FBMI) and Protherics PLC (Nasdaq:PTIL) are among the new 52-week lows in Wednesday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Peoples Bancorp of North Carolina Inc (Nasdaq:PEBK), Pantry Inc (Nasdaq:PTRY), Sterling Financial Corp (Nasdaq:STSA), First Financial Holdings Inc (Nasdaq:FFCH), Green Plains Renewable Energy Inc (Nasdaq:GPRE) and Bank of the Ozarks Inc (Nasdaq:OZRK).

Here are the new 52-week lows among small caps:

The Russell 2000 (NYSE:IWM) is maintaining strong gains on news of lower-than-expected March inflation earnings from major banks. At 2:19 p.m. ET, the small-cap index had added 14.99 points, or 2.17%, to 707.05. The Dow Jones Industrial Average was up 163.74 points, or 1.32%, to 12,526.21.

Stocks small and large are rallying on news before the opening that consumer prices rose 0.3% in March, below the projected 0.4%. The same report by the U.S. Labor Department also showed that core prices, which exclude the costs of food and energy, added 0.2%, as expected.

“Typically, when the economy goes into recession we see inflationary pressures ease, but there is a significant lag,” said Arun Raha, vice president of economic research and consulting for the North American operations of reinsurance company Swiss Re, in an email. “Today’s CPI numbers reinforce that trend. Inflationary pressures . . .

The credit crunch continues to take its toll on the economy, markets, and in particular, banking stocks. Analysts warn not to touch the Bank of America’s of the world, as there are only future write downs ahead. However, with little to no exposure to mortgage-backed securities, regional banks have cleaner and stronger balance sheets and may be overlooked long-term investment opportunities.

“If you’re patient and have the nerves to withstand the volatility of the market, I think you can get into the small-cap space, but you have to be highly selective,” said B. Riley senior banking analyst Andy Stapp. “There are banks whose assets will hold up well. That’s what happened in the last credit cycle, which was a real estate-related cycle.”

The top three qualities Stapp looks for when screening small-cap banks are markets, conservative management profile and the extent of the bank’s construction development portfolio.

“It starts by picking regional banks that operate in markets that have held up better than others,” said Stapp. “Pick banks that aren’t as vulnerable to the rise and real estate market.”

He says banks in California, Florida and Michigan have had a lot of exposure to real estate, as the value of real estate in those states has plummeted. However, there are other states in which the real estate market has better weathered the housing downturn.

“Texas is a much stronger market than the nation as a whole,” said Stapp. “The inventory supply levels are much lower [there]. The markets in the Philadelphia area and mid-Atlantic area have also held up much better.”

According to Stapp, the median value of single family homes in those markets actually rose 1% year-over-year in the fourth quarter, as contrasted with steep double-digit declines in markets like California, Florida and Michigan. 

Some small-cap banks Stapp has “buy” ratings on include Bank of the Ozarks (Nasdaq:OZRK). The bank has one of the bigger construction development portfolios that has less perceived risk than its peers, according . . .

Bank of the Ozarks, Inc. (Nasdaq: OZRK) CEO George Gleason said “tremendous media hype” helped cause the company’s decline in mortgage lending revenue. During a midday conference call, he told investors that the company is still able to provide mortgage lending services to a variety of customers.

“I would love to give you good guidance on where our mortgage lending income is going, but in our markets it seems that the conditions are being driven more by market psychology than economic fundamentals; it is especially difficult to predict when we will return to a more normal environment,” Gleason said.

The company’s third-quarter mortgage lending income declined to $0.59 million during 2007, from $0.79 million a year earlier. Higher energy prices and slower economic conditions are affecting some borrowers, he said.

Bank of the Ozarks has total assets of $2.6 billion as of June 30. The bank’s holding company owns banks in Arkansas, Texas and North Carolina.

After Thursday’s closing, Bank of the Ozarks reported record third-quarter profit of $8.4 million, or $0.50 per share, above views of $0.49 per share and from $8 million, or $0.48 per share, a year earlier. For the three months ended Sept. 30, the firm’s net interest income was $19.7 million, from $17.8 million during the same period of 2006.

Bank of the Ozarks, Inc. (Nasdaq: OZRK) CEO George Gleason reported record second-quarter net income and outlined the Little Rock, Ark.-based bank’s plans for the future during a Friday afternoon conference call.

After investing in consumer initiatives, corporate growth and additional branch outlets in 2006, Gleason said the company has four major programs for 2007. First, Bank of the Ozarks wants to accelerate the growth rate of revenue. The company’s net interest income for 2007’s second quarter increased 7.3%.

Second, the bank is looking to decelerate the growth rate of non-interest expenses. For the second quarter ended June 30, the company recorded $11.8 million in non-interest expenses, compared with $11 million in the prior year’s period.

Third, the company wants to maintain or improve net interest margins. For the second quarter ended June 30, Bank of the Ozarks reported $8.08 million, or $0.48 per share, in net income, up 2% from $7.9 million, or $0.47 per share, in the same period of 2006.

“We are pleased to be reporting our second-quarter earnings and in our opinion, these results reflect good progress toward achieving a number of our goals in 2007,” Gleason said.