Oakworth Capital Inc. Reports 16% Increase in Year-to-Date Diluted EPS

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Oakworth Capital Inc. (OAKC) reported a 16% increase in diluted earnings per share and a 15% increase in earnings year-to-date September 30, 2023, compared to the same period in 2022. The company attributes this growth to a 9% increase in wealth assets, a 23% increase in loans, a 16% increase in deposits, and a 17 bps margin expansion year-over-year. Chairman and CEO Scott Reed emphasized the company's focus on balanced growth and exceptional client service in a challenging environment.

Positive

• 16% increase in diluted earnings per share and a 15% increase in earnings year-to-date compared to 2022
• 9% increase in wealth assets, 23% increase in loans, 16% increase in deposits, and 17 bps margin expansion year-over-year

Negative

• None.

BIRMINGHAM, Ala., Nov. 13, 2023 /PRNewswire/ -- Oakworth Capital Inc. (Oakworth) (OTCQX: OAKC) reported 16% higher diluted earnings per share and 15% higher earnings year-to-date September 30, 2023 compared to the same period of 2022. Contributing to earnings growth were wealth asset growth of 9%, loan growth of 23%, deposit growth of 16% and margin expansion of 17 bps, all year-over-year September 30.

Oakworth's Chairman and CEO Scott Reed stated, "Oakworth is focused on balanced growth of loans, deposits and wealth assets across markets. I'm proud of our team's dedication to serving our clients across disciplines with a distinctive level of service, resulting in strong annual growth in a challenging environment."

Mr. Reed continued, "We are excited about the opening of our Central Carolinas market on October 2. We have a talented, experienced team on the ground who are already bringing their expertise to the marketplace." 

Linked-quarter results reflect 4% loan growth, 1% deposit growth and a 5% decline in the value of wealth assets. Pre-tax, pre-provision income was flat at $4.6 million primarily due to linked-quarter contraction of the net interest margin to 3.25% from 3.45% in second quarter, reflecting higher deposit cost. Wealth fees increased 6% on wealth assets of $1.9 billion. 

At quarter end, Oakworth's single stressed credit relationship was past due 91 days. Subsequent to September 30, Oakworth determined its best interest was to pursue legal action against the debtor. In connection with this action, Oakworth has placed approximately $15 million on non-accrual in the fourth quarter. With the exception of this relationship, Oakworth reported $0 of non-performing assets at September 30 and continues to report $0 of non-performing assets as of the date of this release.

At September 30, 2023, Tier 1 Capital was 10.1%, the Total Capital Ratio was 11.1% and the Leverage Ratio was 9.4%.

About Oakworth Capital Inc. and Oakworth Capital Bank
Oakworth Capital, Inc. operates as the bank holding company for Oakworth Capital Bank (Oakworth) (OTCQX: OAKC). Oakworth was founded in 2008 and operates four offices in the Southeast, including its headquarters in Birmingham, Alabama. Oakworth provides commercial and private banking, wealth management and advisory services to clients across the United States.

Oakworth has been named the #1 "Best Bank to Work for" for the past five years in a row (2018-2022) by American Banker. Additionally, Oakworth has earned a Net Promoter Score (NPS) of 96 out of 100 (September 2022 to September 2023) and has a client retention rate of 95% in 2022. As of Sept. 30, 2023, Oakworth had $1.5 billion in total assets, $1.1 billion in gross loans, $1.2 billion in deposits and $1.9 billion in wealth and trust assets under management. For more information, visit www.oakworth.com.

For more information contact:
Jenifer Kimbrough
Phone: 205-263-4704
Email: jenifer.kimbrough@oakworth.com

 

OAKWORTH CAPITAL INC.
WEALTH AND TRUST (Unaudited)
(In millions)		As of										Change				Change
		9/30/2023		6/30/2023		3/31/2023		12/31/2022		9/30/2022		9/30/2023 vs. 6/30/2023				9/30/2023 vs. 9/30/2022
Wealth assets (non-balance sheet)		$           1,896		$           1,987		$           1,875		$           1,802		$           1,738		$               (91)		-5 %		$              158		9 %
CONSOLIDATED CONDENSED STATEMENTS OF CONDITION (Unaudited)
(in thousands)		As of										Change				Change
		9/30/2023		6/30/2023		3/31/2023		12/31/2022		9/30/2022		9/30/2023 vs. 6/30/2023				9/30/2023 vs. 9/30/2022
Assets
Cash and due from banks		$       116,065		$        140,421		$         69,575		$        185,483		$        115,950		$        (24,356)		-17 %		$              115		0 %
Federal funds sold		2,225		3,825		3,025		4,475		2,650		(1,600)		-42 %		(425)		-16 %
Securities available for sale		137,907		135,433		136,234		132,050		130,722		2,474		2 %		7,185		5 %
Loans, net of unearned income		1,146,526		1,107,028		1,076,532		974,398		934,003		39,498		4 %		212,523		23 %
Allowance for loan losses		(13,575)		(13,144)		(12,808)		(11,692)		(11,240)		(431)		3 %		(2,335)		21 %
Loans, net		1,132,951		1,093,884		1,063,724		962,706		922,763		39,067		4 %		210,188		23 %
Fixed assets		4,758		4,626		3,314		3,129		3,136		132		3 %		1,622		52 %
Interest receivable		5,932		4,791		4,752		4,263		2,957		1,141		24 %		2,975		101 %
Other assets		50,209		45,999		44,986		43,348		42,228		4,210		9 %		7,981		19 %
Total assets		$     1,450,047		$     1,428,979		$     1,325,610		$     1,335,454		$     1,220,406		$         21,068		1 %		$       229,641		19 %
Liabilities and Stockholders' Equity
Liabilities:
Deposits:
Non-interest bearing deposits		$       278,822		$        301,821		$        324,649		$        315,033		$        319,828		$        (22,999)		-8 %		$        (41,006)		-13 %
Interest-bearing deposits		963,044		922,391		802,946		861,401		751,026		40,653		4 %		212,018		28 %
Total deposits		1,241,866		1,224,212		1,127,595		1,176,434		1,070,854		17,654		1 %		171,012		16 %
Total Borrowings		74,180		74,158		74,134		34,112		34,105		22		0 %		40,075		NA
Accrued interest payable		455		982		425		840		294		(527)		-54 %		161		55 %
Other liabilities		21,840		17,960		14,937		20,310		15,160		3,880		22 %		6,680		44 %
Total liabilities		1,338,341		1,317,312		1,217,091		1,231,696		1,120,413		21,029		2 %		217,928		19 %
Total stockholders' equity		111,706		111,667		108,519		103,758		99,993		39		0 %		11,713		12 %
Total liabilities and stockholders' equity		$     1,450,047		$     1,428,979		$     1,325,610		$     1,335,454		$     1,220,406		$         21,068		1 %		$       229,641		19 %

 

 

OAKWORTH CAPITAL INC.
CONSOLIDATED CONDENSED STATEMENTS OF INCOME (Unaudited)
(in thousands)		Quarter Ended										Change				Change
		9/30/2023		6/30/2023		3/31/2023		12/31/2022		9/30/2022		3Q23 vs. 2Q23				3Q23 vs. 3Q22
Interest income:
Loans, including fees		$         19,204		$         18,193		$         15,864		$         13,643		$         11,065		$           1,011		6 %		$           8,139		74 %
Securities available for sale		899		825		811		797		774		74		9 %		125		16 %
Short term investments		1,608		991		909		1,161		496		617		62 %		1,112		224 %
Total interest income		21,711		20,009		17,584		15,601		12,335		1,702		9 %		9,376		76 %
Interest expense:
Deposits		9,200		7,585		5,729		3,782		1,286		1,615		21 %		7,914		615 %
Borrowings		1,097		1,072		638		548		258		25		2 %		839		NA
Total interest expense		10,297		8,657		6,367		4,330		1,544		1,640		19 %		8,753		567 %
Net interest income		11,414		11,352		11,217		11,271		10,791		62		1 %		623		6 %
Provision for loan losses		431		335		1,116		452		628		96		29 %		(197)		-31 %
Net interest income after provision		10,983		11,017		10,101		10,819		10,163		(34)		0 %		820		8 %
for loan losses
Non-interest income		3,836		3,392		3,297		3,095		3,136		444		13 %		700		22 %
Non-interest expense		10,640		10,151		9,447		9,518		9,098		489		5 %		1,542		17 %
Income before income taxes		4,179		4,258		3,951		4,396		4,201		(79)		-2 %		(22)		-1 %
Provision for income taxes		1,035		1,011		934		1,051		1,008		24		2 %		27		3 %
Net Income		3,144		3,247		3,017		3,345		3,193		(103)		-3 %		(49)		-2 %
Earnings per share - basic		$             0.64		$             0.66		$             0.62		$             0.69		$             0.66		$            (0.02)		-3 %		$            (0.02)		-3 %
Earnings per share - diluted		$             0.64		$             0.66		$             0.62		$             0.68		$             0.65		$            (0.02)		-3 %		$            (0.01)		-2 %

 

 

OAKWORTH CAPITAL INC.
CONSOLIDATED CONDENSED STATEMENTS OF INCOME (Unaudited)
(in thousands)		YTD Period Ended
		9/30/2023			9/30/2022		Change
Interest income:
Loans, including fees		$         53,261			$         27,039		$         26,222		97 %
Securities available for sale		2,533			2,052		481		23 %
Short term investments		3,508			934		2,574		276 %
Total interest income		59,302			30,025		29,277		98 %
Interest expense:
Deposits		22,512			1,906		20,606		1081 %
Borrowings		2,807			258		2,549		NA
Total interest expense		25,319			2,164		23,155		1070 %
Net interest income		33,983			27,861		6,122		22 %
Provision for loan losses		1,883			1,925		(42)		-2 %
Net interest income after provision		32,100			25,936		6,164		24 %
for loan losses
Non-interest income		10,526			9,543		983		10 %
Non-interest expense		30,237			24,788		5,449		22 %
Income before income taxes		12,389			10,691		1,698		16 %
Provision for income taxes		2,981			2,537		444		18 %
Net Income		9,408			8,154		1,254		15 %
Earnings per share - basic		$             1.93			$             1.69		$             0.24		14 %
Earnings per share - diluted		$             1.93			$             1.66		$             0.27		16 %

 

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SOURCE Oakworth Capital Inc.

FAQ

What were Oakworth Capital Inc.'s earnings per share and earnings growth compared to 2022?

Oakworth Capital Inc. reported a 16% increase in diluted earnings per share and a 15% increase in earnings year-to-date September 30, 2023, compared to the same period in 2022.

What factors contributed to Oakworth Capital Inc.'s earnings growth?

The company attributes its earnings growth to a 9% increase in wealth assets, a 23% increase in loans, a 16% increase in deposits, and a 17 bps margin expansion year-over-year.

What did Oakworth Capital Inc.'s Chairman and CEO emphasize about the company's focus?

Chairman and CEO Scott Reed emphasized the company's focus on balanced growth of loans, deposits, and wealth assets across markets, as well as exceptional client service in a challenging environment.