Bank of the Ozarks says slower loan growth due to faster loan prepayments
Bank of the Ozarks management said on the company's Q3 earnings call that in the quarter just ended its non-purchase loans and leases grew $545M, which equates to a 26.5% annualized growth rate in non-purchase loans and leases. The slower growth rate is a result of faster loan prepayments, the company explained, adding that even with the faster loan prepayments it still expects 2016 growth in non-purchase loans and leases to exceed 2015 growth. For next year, the bank expects 2017 growth in non-purchase loans and leases to exceed 2016 growth, but added that "these year-over-year growth expectations for 2016 and for 2017 are less robust than we projected just a few months ago. And that difference is fully attributable to our expectations regarding a continuation of the recent acceleration in loan prepayments."