Oakworth Capital Inc. Reports 27% Increase in First Half 2023 Diluted EPS

Linked-quarter, annualized deposit growth of 34%, wealth asset growth of 24% and loan growth of 11%

BIRMINGHAM, Ala., July 31, 2023 /PRNewswire/ -- Oakworth Capital Inc. (Oakworth) (OTCQX: OAKC) reported 27% higher diluted earnings per share and 26% higher earnings year-to-date June 30, 2023 compared to the same period of 2022.  Pre-tax, pre-provision income increased 24% in the same period.  First half 2023 return on average equity was 11.6% and return on average assets was 1.0%.

Oakworth's Chairman and CEO Scott Reed stated, "Oakworth continues to execute on our plan to bring a unique approach to financial services in all of our markets as demonstrated by balanced growth across our core disciplines.  The growth in deposits is notable given the industry turmoil in the first half of 2023 related to the failure of three large regional banks.  This deposit growth is tangible evidence that Oakworth is viewed as a stable and safe institution for its clients.  I am also pleased with the return of our wealth book to its previous record level of nearly $2 billion in assets which is the result of our team's ability to add nearly $70 million in new wealth assets along with some amount of market value recovery."

Mr. Reed continued, "In addition to maintaining a 96 Net Promoter Score over the past 12 months, we have been preparing for a successful opening of our Central Carolinas office in the third quarter. We continue to attract associates who embody our core values and who will provide the consistent, high level of service that has become synonymous with Oakworth.  The reception Oakworth has experienced to date is exciting, and we look forward to executing our business model in another dynamic market."

Net income for the quarter was $3.2 million with total revenue of $14.7 million.  Quarterly earnings per share were $0.66 on a diluted basis, up from $0.55 one year earlier and $0.62 in the prior quarter.  Net interest income increased 22% compared to second quarter 2022 and 1% linked-quarter.  The second quarter 2023 net interest margin was 3.45% compared to 3.31% one year ago and 3.64% in the prior quarter.  The margin contraction in the most recent quarter is attributed to faster deposit growth, higher overall deposit interest rates, and moderated loan growth.  Wealth fees were steady both linked quarter and compared to second quarter 2022.  Wealth assets were $1.99 billion at June 30, 2023.

Oakworth's credit quality remains pristine with continued $0 charge-offs, $0 non-performing assets and $0 90-day past due loans as of and for the quarter ended June 30, 2023.

Oakworth's capital position remains strong. At June 30, 2023, Tier 1 Capital was 10.2%, the Total Capital Ratio was 11.2% and the Leverage Ratio was 9.6%.

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 three offices in the Southeast, including its headquarters in Birmingham, Alabama and plans to open a fourth office in 2023. 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 (June 2022 to June 2023) and has a client retention rate of 95% in 2022. As of June 30, 2023, Oakworth had $1.4 billion in total assets, $1.1 billion in gross loans, $1.2 billion in deposits and $2.0 billion in wealth and trust assets under management. For more information, visit www.oakworth.com.

OAKWORTH CAPITAL INC.
WEALTH AND TRUST (Unaudited)
(In millions)		As of										Change				Change
		6/30/2023		3/31/2023		12/31/2022		9/30/2022		6/30/2022		6/30/2023 vs. 3/31/2023				6/30/2023 vs. 6/30/2022
Wealth assets (non-balance sheet)		$           1,987		$           1,875		$           1,802		$           1,738		$           1,783		$              112		6.0 %		$              204		11 %
CONSOLIDATED CONDENSED STATEMENTS OF CONDITION (Unaudited)
(in thousands)		As of										Change				Change
		6/30/2023		3/31/2023		12/31/2022		9/30/2022		6/30/2022		6/30/2023 vs. 3/31/2023				6/30/2023 vs. 6/30/2022
Assets
Cash and due from banks		$       140,421		$         69,575		$        185,483		$        115,950		$        114,252		$         70,846		102 %		$         26,169		23 %
Federal funds sold		3,825		3,025		4,475		2,650		5,300		800		26 %		(1,475)		-28 %
Securities available for sale		135,433		136,234		132,050		130,722		130,093		(801)		-1 %		5,340		4 %
Loans, net of unearned income		1,107,028		1,076,532		974,398		934,003		854,432		30,496		3 %		252,596		30 %
Allowance for loan losses		(13,144)		(12,808)		(11,692)		(11,240)		(10,612)		(336)		3 %		(2,532)		24 %
Loans, net		1,093,884		1,063,724		962,706		922,763		843,820		30,160		3 %		250,064		30 %
Fixed assets		4,626		3,314		3,129		3,136		3,242		1,312		40 %		1,384		43 %
Interest receivable		4,791		4,752		4,263		2,957		2,605		39		1 %		2,186		84 %
Other assets		45,999		44,986		43,348		42,228		40,931		1,013		2 %		5,068		12 %
Total assets		$     1,428,979		$     1,325,610		$     1,335,454		$     1,220,406		$     1,140,243		$        103,369		8 %		$       288,736		25 %
Liabilities and Stockholders' Equity
Liabilities:
Deposits:
Non-interest bearing deposits		$       301,821		$        324,649		$        315,033		$        319,828		$        329,684		$        (22,828)		-7 %		$        (27,863)		-8 %
Interest-bearing deposits		922,391		802,946		861,401		751,026		695,837		119,445		15 %		226,554		33 %
Total deposits		1,224,212		1,127,595		1,176,434		1,070,854		1,025,521		96,617		9 %		198,691		19 %
Total Borrowings		74,158		74,134		34,112		34,105		-		24		0 %		74,158		NA
Accrued interest payable		982		425		840		294		27		557		131 %		955		3537 %
Other liabilities		17,960		14,937		20,310		15,160		14,124		3,023		20 %		3,836		27 %
Total liabilities		1,317,312		1,217,091		1,231,696		1,120,413		1,039,672		100,221		8 %		277,640		27 %
Total stockholders' equity		111,667		108,519		103,758		99,993		100,571		3,148		3 %		11,096		11 %
Total liabilities and stockholders' equity		$     1,428,979		$     1,325,610		$     1,335,454		$     1,220,406		$     1,140,243		$        103,369		8 %		$       288,736		25 %

 

OAKWORTH CAPITAL INC.
CONSOLIDATED CONDENSED STATEMENTS OF INCOME (Unaudited)
(in thousands)		Quarter Ended										Change				Change
		6/30/2023		3/31/2023		12/31/2022		9/30/2022		6/30/2022		2Q23 vs. 1Q23				2Q23 vs. 2Q22
Interest income:
Loans, including fees		$         18,193		$         15,864		$         13,643		$         11,065		$           8,605		$           2,329		15 %		$           9,588		111 %
Securities available for sale		825		811		797		774		696		14		2 %		129		19 %
Short term investments		991		909		1,161		496		314		82		9 %		677		216 %
Total interest income		20,009		17,584		15,601		12,335		9,615		2,425		14 %		10,394		108 %
Interest expense:
Deposits		7,585		5,729		3,782		1,286		343		1,856		32 %		7,242		2111 %
Borrowings		1,072		638		548		258		-		434		68 %		1,072		NA
Total interest expense		8,657		6,367		4,330		1,544		343		2,290		36 %		8,314		2424 %
Net interest income		11,352		11,217		11,271		10,791		9,272		135		1 %		2,080		22 %
Provision for loan losses		335		1,116		452		628		931		(781)		-70 %		(596)		-64 %
Net interest income after provision		11,017		10,101		10,819		10,163		8,341		916		9 %		2,676		32 %
for loan losses
Non-interest income		3,392		3,297		3,095		3,136		3,159		95		3 %		233		7 %
Non-interest expense		10,151		9,447		9,518		9,098		7,948		704		7 %		2,203		28 %
Income before income taxes		4,258		3,951		4,396		4,201		3,552		307		8 %		706		20 %
Provision for income taxes		1,011		934		1,051		1,008		846		77		8 %		165		20 %
Net Income		3,247		3,017		3,345		3,193		2,706		230		8 %		541		20 %
Earnings per share - basic		$             0.66		$             0.62		$             0.69		$             0.66		$             0.56		$             0.05		7 %		$             0.10		18 %
Earnings per share - diluted		$             0.66		$             0.62		$             0.68		$             0.65		$             0.55		$             0.05		8 %		$             0.12		21 %

 

OAKWORTH CAPITAL INC.
CONSOLIDATED CONDENSED STATEMENTS OF INCOME (Unaudited)
(in thousands)		YTD Period Ended
		6/30/2023			6/30/2022		Change
Interest income:
Loans, including fees		$         34,057			$         15,974		$         18,083		113 %
Securities available for sale		1,635			1,279		356		28 %
Short term investments		1,900			437		1,463		335 %
Total interest income		37,592			17,690		19,902		113 %
Interest expense:
Deposits		13,314			620		12,694		2047 %
Borrowings		1,709			-		1,709		NA
Total interest expense		15,023			620		14,403		2323 %
Net interest income		22,569			17,070		5,499		32 %
Provision for loan losses		1,452			1,297		155		12 %
Net interest income after provision		21,117			15,773		5,344		34 %
for loan losses
Non-interest income		6,690			6,407		283		4 %
Non-interest expense		19,598			15,689		3,909		25 %
Income before income taxes		8,209			6,491		1,718		26 %
Provision for income taxes		1,945			1,529		416		27 %
Net Income		6,264			4,962		1,302		26 %
Earnings per share - basic		$             1.28			$             1.03		$             0.25		25 %
Earnings per share - diluted		$             1.28			$             1.01		$             0.27		27 %

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

 

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SOURCE Oakworth Capital Inc.