Bank OZK (NASDAQ:OZK) Q1 2023 Earnings Conference Call April 21, 2023 11:00 AM ET

Company Participants

Jay Staley - IR

George Gleason - Chairman & CEO

Brannon Hamblen - President

Tim Hicks - CFO

Cindy Wolfe - COO

Conference Call Participants

Timur Braziler - Wells Fargo

Stephen Scouten - Piper Sandler

Manan Gosalia - Morgan Stanley

Brody Preston - UBS

Matt Olney - Stephens

Brian Martin - Janney Montgomery

Catherine Mealor - KBW

Operator

Good day, and thank you for standing by. Welcome to Bank OZK's First Quarter 2023 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there'll be a question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded.

I would now like to hand the conference over to your speaker today, Jay Staley, Director of Investor Relations and Corporate Development. Please go ahead, sir.

Jay Staley

Good morning. I am Jay Staley, Director of Investor Relations and Corporate Development for Bank OZK. Thank you for joining our call this morning and participating in our question-and-answer session.

In today's Q&A session, we may make forward-looking statements about our expectations, estimates and outlook for the future. Please refer to our earnings release, management comments and other public filings for more information on the various factors and risks that may cause actual results or outcomes to vary from those projected in or implied by such forward-looking statements.

Joining me on the call to take your questions are, George Gleason, Chairman, and CEO; Brannon Hamblen, President; Tim Hicks, Chief Financial Officer; and Cindy Wolfe, Chief Operating Officer. We will now open up the lines for your questions.

Let me now ask our operator Norma to remind our listeners how to queue in for questions.

Question-and-Answer Session

Operator

Thank you. [Operator Instructions] Our first question comes from Timur Braziler with Wells Fargo. Your line is open.

Timur Braziler

Hi. Good morning, everyone.

George Gleason

Good morning.

Timur Braziler

Starting on the land loan that was moved into OREO, I guess, what's the price at which that loan could be sold at today? And I'm wondering, putting it in OREO with the appraised value of 100, why not use the sale value today as kind of the basis for that loan?

George Gleason

Brannon, do you want to talk about that credit?

Brannon Hamblen

Sure. Timur, thanks for the question. We've talked about the credit last quarter and described the credit for you. I would -- in specific answer to your question, we obviously had the appraisal originally at 139 in June of '21, had another one more recently at a 100.4. As to where we book it, look at the end of the day, the basis is known by our notices out there. So in terms of where we come in there, that's going to be affected by that. That's a -- it's a great site. We feel very good about our ability to market that site over the next year or two. And as we said, feel good that we'll have little if any loss associated with that.