OZK Bank Plans Major Expansion in Houston

OZK Bank, a leading player in the construction lending industry, is planning a significant expansion in the Bayou City as it seeks to capitalize on “untapped potential.”

The Arkansas-based lender plans to double its Houston-area branch count to eight over the next 12 months, the Houston Business Journal reported.

Bank OZK has targeted northwest Houston, Heights and Friendswood for branch locations. In addition, it has leased more than 7,800 square feet in the Brookhollow Central complex in northwest Houston, where it will house its corporate and institutional banking headquarters. A significant portion of the bank’s closing and portfolio management operations will be conducted out of the Brookhollow location, where it plans to move in September.

OZK Bank provided more than $3 billion in construction loans last year, more than $1 billion ahead of its closest competitors, according to MSCI. The bank is lending at a time when many lenders are reluctant, due to a struggling commercial real estate sector that has been in increasing distress since last year.

The bank operates 25 branches in Texas, including 13 in Dallas-Fort Worth, with a workforce of 360 employees statewide, including 38 in Houston.

The new corporate and institutional banking group, led by Houston-based President Jake Munn, consolidated the bank’s asset-based lending, equipment finance, capital solutions and fund finance groups. It also introduced corporate banking and sponsor finance capabilities, targeting the commercial and industrial lending relationships of mid- and large-sized companies.

Bank OZK President Brannon Hamblen said the Houston-based corporate and institutional banking group will nearly double the bank’s local headcount in the near term, with hiring and expansion plans continuing. He also said that while the bank is focused on organic growth, it remains open to potential acquisitions, although it will be very selective.

The company aims to diversify beyond its traditional home loan business by adding the division.

“There’s so much more to do in Houston, especially in the commercial and industrial space, with our CIB group and with more community bankers,” Hamblen told the outlet. “There’s a lot of untapped potential for us in the Houston market.”

—Quinn Donoghue