Oakworth Capital Inc. Reports 35% Increase in Diluted EPS

Consistent Growth and Safety and Soundness Noted

BIRMINGHAM, Ala., May 1, 2023 /PRNewswire/ -- OakworthCapital Inc. (OTCQX: OAKC) reported 35% higher diluted earnings per share and 34% higher earnings in first quarter 2023 than the same period of 2022.  Pre-tax, pre-provision income increased 53%, taking into account 40% year-over-year loan growth.

Oakworth's Chairman and CEO Scott Reed shared, "It has been an eventful quarter for our industry.  Oakworth's status as one of the safest institutions in the country has been top of mind for our clients.  Our focus on a strong, well-capitalized balance sheet continues to provide confidence to our clients and has enabled us to execute on our growth objectives."

Financial highlights first quarter 2023 vs. first quarter 2022 are as follows:

• Net income of $3.0 million, up 34% from $2.3 million
• Total revenue of $14.5 million, up 32% from $11.0 million
• Diluted earnings per share of $0.62, up 35% from $0.47
• Net interest income up 44% year-over-year
• Net interest margin of 3.64% compared to 2.70% one year ago and 3.68% in fourth quarter 2022
• Reflects higher deposit costs, higher loan yields and a loan book growing faster than the deposit book
• Wealth assets of $1.9 billion, down 5% from $2.0 billion
• Wealth fees down 3% to $2.6 million
• Reflects market value changes offset by new accounts and additions to existing accounts
• Total assets of $1.3 billion, up 7% from $1.2 billion
• $1.1 billion in loans, up 40% from $771 million
• $1.1 billion in deposits in both periods
• Continued pristine credit quality with $0 charge-offs, $0 non-performing assets and $0 90-day past due loans in both periods
• Strong capital with Tier 1 Capital ratio of 10.2%, Total Capital Ratio of 11.3% and Leverage Ratio of 9.8% at March 31, 2023

Reed continued, "Our deposit book is diversified and entirely relationship-based and was not significantly impacted by first quarter industry events.  We remain pleased with how our balanced business model performs across market environments."

 

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 (April 2022 to April 2023) and a client retention rate of 95% in 2022. As of March 31, 2023, Oakworth had $1.3 billion in total assets, $1.1 billion in gross loans, $1.1 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
		3/31/2023		12/31/2022		9/30/2022		6/30/2022		3/31/2022		3/31/2023 vs. 12/31/2022				3/31/2023 vs. 3/31/2022
Wealth assets (non-balance sheet)		$         1,875		$         1,802		$         1,738		$         1,783		$         1,980		$           (105)		-5.3 %		$         1,980		-5 %
CONSOLIDATED CONDENSED STATEMENTS OF CONDITION (Unaudited)
(in thousands)		As of										Change				Change
		3/31/2023		12/31/2022		9/30/2022		6/30/2022		3/31/2022		3/31/2023 vs. 12/31/2022				3/31/2023 vs. 3/31/2022
Assets
Cash and due from banks		$       69,575		$     185,483		$     115,950		$     114,252		$     291,492		$    (115,908)		-62 %		$    (221,917)		-76 %
Federal funds sold		3,025		4,475		2,650		5,300		4,075		(1,450)		-32 %		(1,050)		-26 %
Securities available for sale		136,234		132,050		130,722		130,093		135,971		4,184		3 %		263		0 %
Loans, net of unearned income		1,076,532		974,398		934,003		854,432		770,798		102,134		10 %		305,734		40 %
Allowance for loan losses		(12,808)		(11,692)		(11,240)		(10,612)		(9,681)		(1,116)		10 %		(3,127)		32 %
Loans, net		1,063,724		962,706		922,763		843,820		761,117		101,018		10 %		302,607		40 %
Fixed assets		3,314		3,129		3,136		3,242		3,370		185		6 %		(56)		-2 %
Interest receivable		4,752		4,263		2,957		2,605		2,418		489		11 %		2,334		97 %
Other assets		44,986		43,348		42,228		40,931		39,713		1,638		4 %		5,273		13 %
Total assets		$  1,325,610		$  1,335,454		$  1,220,406		$  1,140,243		$  1,238,156		$        (9,844)		-1 %		$       87,454		7 %
Liabilities and Stockholders' Equity
Liabilities:
Deposits:
Non-interest bearing deposits		$     324,649		$     315,033		$     319,828		$     329,684		$     325,262		$         9,616		3 %		$           (613)		0 %
Interest-bearing deposits		802,946		861,401		751,026		695,837		796,865		(58,455)		-7 %		6,081		1 %
Total deposits		1,127,595		1,176,434		1,070,854		1,025,521		1,122,127		(48,839)		-4 %		5,468		0 %
Total Borrowings		74,134		34,112		34,105		-		-		40,022		117 %		74,134		NA
Accrued interest payable		425		840		294		27		40		(415)		-49 %		385		963 %
Other liabilities		14,937		20,310		15,160		14,124		14,695		(5,373)		-26 %		242		2 %
Total liabilities		1,217,091		1,231,696		1,120,413		1,039,672		1,136,862		(14,605)		-1 %		80,229		7 %
Total stockholders' equity		108,519		103,758		99,993		100,571		101,294		4,761		5 %		7,225		7 %
Total liabilities and stockholders' equity		$  1,325,610		$  1,335,454		$  1,220,406		$  1,140,243		$  1,238,156		$        (9,844)		-1 %		$       87,454		7 %

 

 

OAKWORTH CAPITAL INC.
CONSOLIDATED CONDENSED STATEMENTS OF INCOME (Unaudited)
(in thousands)		Quarter Ended										Change				Change
		3/31/2023		12/31/2022		9/30/2022		6/30/2022		3/31/2022		3/31/2023 vs. 12/31/2022				3/31/2023 vs. 3/31/2022
Interest income:
Loans, including fees		$       15,864		$       13,643		$       11,065		$         8,605		$         7,368		$         2,221		16 %		$         8,496		115 %
Securities available for sale		811		797		774		696		583		14		2 %		228		39 %
Short term investments		909		1,161		496		314		123		(252)		-22 %		786		639 %
Total interest income		17,584		15,601		12,335		9,615		8,074		1,983		13 %		9,510		118 %
Interest expense:
Deposits		5,729		3,782		1,286		343		276		1,947		51 %		5,453		1976 %
Borrowings		638		548		258		-		-		90		16 %		638		NA
Total interest expense		6,367		4,330		1,544		343		276		2,037		47 %		6,091		2207 %
Net interest income		11,217		11,271		10,791		9,272		7,798		(54)		0 %		3,419		44 %
Provision for loan losses		1,116		452		628		931		366		664		147 %		750		NA
Net interest income after provision		10,101		10,819		10,163		8,341		7,432		(718)		-7 %		2,669		36 %
for loan losses
Non-interest income		3,297		3,095		3,136		3,159		3,231		202		7 %		66		2 %
Non-interest expense		9,447		9,518		9,098		7,948		7,726		(71)		-1 %		1,721		22 %
Income before income taxes		3,951		4,396		4,201		3,552		2,937		(445)		-10 %		1,014		35 %
Provision for income taxes		934		1,051		1,008		846		682		(117)		-11 %		252		37 %
Net Income		3,017		3,345		3,193		2,706		2,255		(328)		-10 %		762		34 %
Earnings per share - basic		$           0.62		$           0.69		$           0.66		$           0.56		$           0.47		$          (0.07)		-10 %		$           0.15		32 %
Earnings per share - diluted		$           0.62		$           0.68		$           0.65		$           0.55		$           0.46		$          (0.06)		-9 %		$           0.16		35 %

 

 

 

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SOURCE Oakworth Capital Inc.