Bank of The Ozarks Inc (OZRK), Wells Fargo & Co (WFC): Is It Time to Book Some Profits Here?

Going forward, it’s hard for say but I imagine the only thing investors could wish from Bank of The Ozarks Inc (NASDAQ:OZRK) is more of the same. Nonperforming assets are up to 1.2% of total loans and leases but even so, this is relatively low and the bank’s allowance account has them almost covered two times over. It appears that Ozark’s looks to keep allowances at close to 2% of total loans but, being that the loan portfolio is growing and net charge-offs are declining, the company looks due for a lower provision charge-something that could boost up the bottom line even more.

Bottom Line
I’m patiently waiting for a significant pullback before I pull the trigger but then again I’ve been waiting for some time. The bank is doing absolutely everything right and at the pace the company is growing it would almost be desirable for the company to suspend its dividend payment. I know that’s an absurd thought but why wouldn’t you want to keep that money in-house, it would be growing at an annual rate in the high teens for what looks to be a very very long-time!

The article Is It Time to Book Some Profits Here? originally appeared on Fool.com.

joshua kubiak has no position in any stocks mentioned. The Motley Fool recommends Wells Fargo. The Motley Fool owns shares of Wells Fargo. 

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.