Oakworth Capital Inc. Reports 29% Increase in Diluted EPS

Rhea-AI Summary

Oakworth Capital Inc. (OAKC) reported a 29% increase in diluted EPS for the first quarter of 2024, driven by strong growth in banking and wealth revenue streams. Wealth assets and loans also saw significant growth, with total revenue increasing by 15% year-over-year. The company's focus on strategic investments in 2023 has paid off, positioning them well for future growth.

Positive

• Solid growth in core business with a 30% increase in earnings
• Double-digit percentage growth in banking and wealth revenue streams
• Wealth assets increased by 15% year-over-year to $2.2 billion
• Loan growth of 19% year-over-year to $1.3 billion
• Deposits grew by 27% year-over-year
• Total revenue increased by 15% year-over-year to $16.7 million
• Strong Tier 1 Capital at 9.9%, Total Capital Ratio at 10.9%, and Leverage Ratio at 9.4%

Negative

• None.

BIRMINGHAM, Ala., April 22, 2024 /PRNewswire/ -- Oakworth Capital Inc. (Oakworth) (OTCQX: OAKC) reported solid growth in its core business in the first quarter of 2024. Earnings increased 30%, driven by double-digit percentage growth in both banking and wealth revenue streams, accompanied by controlled expense growth. 

Oakworth's Chairman and CEO Scott Reed stated, "We look forward to realizing a return on the strategic investments we made in 2023 to support future growth and service offerings, including our Central Carolinas office. We are off to a positive start in the first quarter and expect to improve on that goal as the year progresses. Our core businesses performed nicely in the quarter with loan growth being strong. We are very pleased with deposit growth and wealth's rebound from a challenging 2023."

Wealth assets increased 15% year-over-year and 7% linked-quarter to $2.2 billion. Year-over-year loan growth was 19% (3% linked quarter) to $1.3 billion. Deposits grew 27% year-over-year and were seasonally flat linked quarter. Total revenue increased 15% year-over-year and 9% linked-quarter to $16.7 million. 

At March 31, 2024, Tier 1 Capital was 9.9%, the Total Capital Ratio was 10.9% 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 six years in a row (2018-2023) by American Banker. Additionally, Oakworth has earned a Net Promoter Score (NPS) of 96 out of 100 (FY2023) and has a client retention rate of 97% in 2023. As of Mar. 31, 2024, Oakworth had $1.6 billion in total assets, $1.3 billion in gross loans, $1.4 billion in deposits and $2.2 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
		3/31/2024		12/31/2023		9/30/2023		6/30/2023		3/31/2023		3/31/2024 vs. 12/31/2023				3/31/2024 vs. 3/31/2023
Wealth assets (non-balance sheet)		$           2,156		$           2,016		$           1,896		$           1,987		$           1,875		$              140		7 %		$              281		15 %
CONSOLIDATED CONDENSED STATEMENTS OF CONDITION (Unaudited)
(in thousands)		As of										Change				Change
		3/31/2024		12/31/2023		9/30/2023		6/30/2023		3/31/2023		3/31/2024 vs. 12/31/2023				3/31/2024 vs. 3/31/2023
Assets
Cash and due from banks		$       126,215		$       158,403		$       116,065		$       140,421		$         69,575		$        (32,188)		-20 %		$         56,640		81 %
Federal funds sold		1,650		3,925		2,225		3,825		3,025		(2,275)		-58 %		(1,375)		-45 %
Securities available for sale		147,576		143,947		137,907		135,433		136,234		3,629		3 %		11,342		8 %
Loans, net of unearned income		1,280,129		1,244,133		1,146,526		1,107,028		1,076,532		35,996		3 %		203,597		19 %
Allowance for loan losses		(15,048)		(14,652)		(13,575)		(13,144)		(12,808)		(396)		3 %		(2,240)		17 %
Loans, net		1,265,081		1,229,481		1,132,951		1,093,884		1,063,724		35,600		3 %		201,357		19 %
Fixed assets		4,998		4,681		4,758		4,626		3,314		317		7 %		1,684		51 %
Interest receivable		6,279		6,284		5,932		4,791		4,752		(5)		0 %		1,527		32 %
Other assets		47,856		48,506		50,209		45,999		44,986		(650)		-1 %		2,870		6 %
Total assets		$     1,599,655		$     1,595,227		$     1,450,047		$     1,428,979		$     1,325,610		$           4,428		0 %		$       274,045		21 %
Liabilities and Stockholders' Equity
Liabilities:
Deposits:
Non-interest bearing deposits		$       266,083		$       319,986		$       278,822		$       301,821		$       324,649		$        (53,903)		-17 %		$        (58,566)		-18 %
Interest-bearing deposits		1,166,594		1,105,921		963,044		922,391		802,946		60,673		5 %		363,648		45 %
Total deposits		1,432,677		1,425,907		1,241,866		1,224,212		1,127,595		6,770		0 %		305,082		27 %
Total Borrowings		34,227		34,204		74,180		74,158		74,134		23		0 %		(39,907)		-54 %
Accrued interest payable		703		1,070		455		982		425		(367)		-34 %		278		65 %
Other liabilities		18,005		23,794		21,840		17,960		14,937		(5,789)		-24 %		3,068		21 %
Total liabilities		1,485,612		1,484,975		1,338,341		1,317,312		1,217,091		637		0 %		268,521		22 %
Total stockholders' equity		114,043		110,252		111,706		111,667		108,519		3,791		3 %		5,524		5 %
Total liabilities and stockholders' equity		$     1,599,655		$     1,595,227		$     1,450,047		$     1,428,979		$     1,325,610		$           4,428		0 %		$       274,045		21 %

 

OAKWORTH CAPITAL INC.
CONSOLIDATED CONDENSED STATEMENTS OF INCOME (Unaudited)
(in thousands)		Quarter Ended										Change				Change
		3/31/2024		12/31/2023		9/30/2023		6/30/2023		3/31/2023		1Q24 vs. 4Q23				1Q24 vs. 1Q23
Interest income:
Loans, including fees		$         22,056		$         20,322		$         19,204		$         18,193		$         15,864		$           1,734		9 %		$           6,192		39 %
Securities available for sale		1,030		977		899		825		811		53		5 %		219		27 %
Short term investments		1,134		1,463		1,608		991		909		(329)		-22 %		225		25 %
Total interest income		24,220		22,762		21,711		20,009		17,584		1,458		6 %		6,636		38 %
Interest expense:
Deposits		11,189		9,976		9,200		7,585		5,729		1,213		12 %		5,460		95 %
Borrowings		548		1,219		1,097		1,072		638		(671)		-55 %		(90)		-14 %
Total interest expense		11,737		11,195		10,297		8,657		6,367		542		5 %		5,370		84 %
Net interest income		12,483		11,567		11,414		11,352		11,217		916		8 %		1,266		11 %
Provision for loan losses		396		10,792		431		335		1,116		(10,396)		-96 %		(720)		-65 %
Net interest income after provision		12,087		775		10,983		11,017		10,101		11,312		1460 %		1,986		20 %
for loan losses
Non-interest income		4,219		3,753		3,836		3,392		3,297		466		12 %		922		28 %
Non-interest expense		11,320		11,013		10,640		10,151		9,447		307		3 %		1,873		20 %
Income before income taxes		4,986		(6,485)		4,179		4,258		3,951		11,471		177 %		1,035		26 %
Provision for income taxes		1,056		(1,752)		1,035		1,011		934		2,808		160 %		122		13 %
Net Income		3,930		(4,733)		3,144		3,247		3,017		8,663		183 %		913		30 %
Earnings per share - basic		$             0.80		$            (0.97)		$             0.64		$             0.66		$             0.62		$             1.76		183 %		$             0.18		29 %
Earnings per share - diluted		$             0.80		$            (0.97)		$             0.64		$             0.66		$             0.62		$             1.76		183 %		$             0.18		29 %

 

OAKWORTH CAPITAL INC.
CONSOLIDATED CONDENSED STATEMENTS OF INCOME (Unaudited)
(in thousands)		YTD Period Ended
		3/31/2024			3/31/2023		Change
Interest income:
Loans, including fees		$         22,056			$         15,864		$           6,192		39 %
Securities available for sale		1,030			811		219		27 %
Short term investments		1,134			909		225		25 %
Total interest income		24,220			17,584		6,636		38 %
Interest expense:
Deposits		11,189			5,729		5,460		95 %
Borrowings		548			638		(90)		-14 %
Total interest expense		11,737			6,367		5,370		84 %
Net interest income		12,483			11,217		1,266		11 %
Provision for loan losses		396			1,116		(720)		-65 %
Net interest income after provision		12,087			10,101		1,986		20 %
for loan losses
Non-interest income		4,219			3,297		922		28 %
Non-interest expense		11,320			9,447		1,873		20 %
Income before income taxes		4,986			3,951		1,035		26 %
Provision for income taxes		1,056			934		122		13 %
Net Income		3,930			3,017		913		30 %
Earnings per share - basic		$             0.80			$             0.62		$             0.18		29 %
Earnings per share - diluted		$             0.80			$             0.62		$             0.18		29 %

 

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SOURCE Oakworth Capital Inc.

FAQ

What was the percentage increase in diluted EPS reported by Oakworth Capital Inc. in the first quarter of 2024?

Oakworth Capital Inc. reported a 29% increase in diluted EPS for the first quarter of 2024.

How much did wealth assets increase year-over-year for Oakworth Capital Inc.?

Wealth assets increased by 15% year-over-year for Oakworth Capital Inc., reaching $2.2 billion.

What was the year-over-year loan growth percentage for Oakworth Capital Inc. in the first quarter of 2024?

Oakworth Capital Inc. experienced a 19% year-over-year loan growth in the first quarter of 2024, reaching $1.3 billion.

What was the total revenue increase for Oakworth Capital Inc. year-over-year in the first quarter of 2024?

Oakworth Capital Inc. saw a total revenue increase of 15% year-over-year in the first quarter of 2024, amounting to $16.7 million.

What were the Tier 1 Capital, Total Capital Ratio, and Leverage Ratio for Oakworth Capital Inc. as of March 31, 2024?

As of March 31, 2024, Oakworth Capital Inc. had a Tier 1 Capital of 9.9%, Total Capital Ratio of 10.9%, and Leverage Ratio of 9.4%.