Oakworth Capital Inc. Reports 23% Increase In Year-To-Date Diluted EPS

2024-10-21 06:16:57

(MENAFN- PR Newswire) Balanced Growth Results in Increasing Profitability

BIRMINGHAM, Ala., Oct. 21, 2024 /PRNewswire/ -- Oakworth Capital Inc. (Oakworth) (OTCQX: OAKC ) reported net income of $4.1 million in third quarter 2024 and $11.7 million year-to-date 2024, up 24% from $9.4 million in the same period of 2023.
Diluted earnings per share was $2.37 in the first three quarters of 2024 compared to $1.93 in the same period of 2023.
Oakworth experienced continued strong growth with 23% increase in total loans, 19% increase in core deposits, 22% growth of wealth assets and 20% increase in total assets year-over-year.

Revenue growth (16% year-over-year) exceeded growth in overall expenses (14% year-over-year) resulting in pre-tax, pre-provision income increasing 21% year-over-year.
Return on average equity is 13.4% and return on average assets is 1.0% year-to-date September 30. Oakworth's Central Carolinas office achieved incremental profitability in the quarter, 11 months after opening.

Oakworth's Chairman and CEO Scott Reed
stated,
"Our expectations of realizing a return on our 2023 investments in the back half of 2024 are coming to fruition.
We are extremely pleased with the performance of our Central Carolinas office and our existing franchise, particularly given the dynamic interest rate environment.
We look forward to finishing the year strong as we prepare for continued opportunities for growth in 2025."

At September 30, 2024, Tier 1 Capital was 9.7%, the Total Capital Ratio was 10.7% and the Leverage Ratio was 9.3%.

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 September 30, 2024, Oakworth had $1.7 billion in total assets, $1.4 billion in gross loans, $1.5 billion in deposits and $2.3 billion in wealth and trust assets under management. For more information, visit

For more information contact:
Jenifer Kimbrough
Phone:
205-263-4704
Email: [email protected]

OAKWORTH CAPITAL INC.

WEALTH AND TRUST (Unaudited)
(In millions)	As of	Change	Change
	9/30/2024	6/30/2024	3/31/2024	12/31/2023	9/30/2023	9/30/2024 vs. 6/30/2024	9/30/2024 vs. 9/30/2023

Wealth assets (non-balance sheet)	$ 2,308	$ 2,200	$ 2,156	$ 2,016	$ 1,896	$ 107	5 %	$ 412	22 %

CONSOLIDATED CONDENSED STATEMENTS OF CONDITION (Unaudited)
(in thousands)	As of	Change	Change
	9/30/2024	6/30/2024	3/31/2024	12/31/2023	9/30/2023	9/30/2024 vs. 6/30/2024	9/30/2024 vs. 9/30/2023
Assets
Cash and due from banks	$ 117,265	$ 71,623	$ 126,215	$ 158,403	$ 116,065	$ 45,642	64 %	$ 1,200	1 %
Federal funds sold	1,950	75	1,650	3,925	2,225	1,875	2500 %	(275)	-12 %
Securities available for sale	156,926	151,379	147,576	143,947	137,907	5,547	4 %	19,019	14 %
Loans, net of unearned income	1,411,569	1,357,150	1,280,129	1,244,133	1,146,526	54,419	4 %	265,043	23 %
Allowance for credit losses	(16,494)	(15,895)	(15,048)	(14,652)	(13,575)	(599)	4 %	(2,919)	22 %
Loans, net	1,395,075	1,341,255	1,265,081	1,229,481	1,132,951	53,820	4 %	262,124	23 %
Fixed assets	4,647	4,820	4,998	4,681	4,758	(173)	-4 %	(111)	-2 %
Interest receivable	6,478	6,903	6,279	6,284	5,932	(425)	-6 %	546	9 %
Other assets	54,396	56,200	47,856	48,506	50,209	(1,804)	-3 %	4,187	8 %
Total assets	$ 1,736,737	$ 1,632,255	$ 1,599,655	$ 1,595,227	$ 1,450,047	$ 104,482	6 %	$ 286,690	20 %

Liabilities and Stockholders' Equity
Liabilities:
Deposits:
Non-interest bearing deposits	$ 255,008	$ 274,968	$ 266,083	$ 319,986	$ 278,822	$ (19,960)	-7 %	$ (23,814)	-9 %
Interest-bearing deposits	1,268,998	1,124,013	1,166,594	1,105,921	963,044	144,985	13 %	305,954	32 %
Total deposits	1,524,006	1,398,981	1,432,677	1,425,907	1,241,866	125,025	9 %	282,140	23 %
Total Borrowings	64,273	94,250	34,227	34,204	74,180	(29,977)	-32 %	(9,907)	-13 %
Accrued interest payable	643	1,517	703	1,070	455	(874)	-58 %	188	41 %
Other liabilities	22,018	19,474	18,005	23,794	21,840	2,544	13 %	178	1 %
Total liabilities	1,610,940	1,514,222	1,485,612	1,484,975	1,338,341	96,718	6 %	272,599	20 %
Total stockholders' equity	125,797	118,033	114,043	110,252	111,706	7,764	7 %	14,091	13 %
Total liabilities and stockholders' equity	$ 1,736,737	$ 1,632,255	$ 1,599,655	$ 1,595,227	$ 1,450,047	$ 104,482	6 %	$ 286,690	20 %

OAKWORTH CAPITAL INC.

CONSOLIDATED CONDENSED STATEMENTS OF INCOME (Unaudited)
(in thousands)		Quarter Ended		Change		Change
		9/30/2024		6/30/2024		3/31/2024		12/31/2023		9/30/2023		3Q24 vs. 2Q24		3Q24 vs. 3Q23

Interest income:
Loans, including fees		$ 25,423		$ 23,505		$ 22,056		$ 20,322		$ 19,204		$ 1,918		8 %		$ 6,219		32 %
Securities available for sale		1,187		1,101		1,030		977		899		86		8 %		288		32 %
Short term investments		837		982		1,134		1,463		1,608		(145)		-15 %		(771)		-48 %
Total interest income		27,447		25,588		24,220		22,762		21,711		1,859		7 %		5,736		26 %
Interest expense:
Deposits		12,296		11,429		11,189		9,976		9,200		867		8 %		3,096		34 %
Borrowings		1,253		1,044		548		1,219		1,097		209		20 %		156		14 %
Total interest expense		13,549		12,473		11,737		11,195		10,297		1,076		9 %		3,252		32 %
Net interest income		13,898		13,115		12,483		11,567		11,414		783		6 %		2,484		22 %
Provision for credit losses		599		847		396		10,792		431		(248)		-29 %		168		39 %
Net interest income after provision	13,299		12,268		12,087		775		10,983		1,031		8 %		2,316		21 %
for loan losses
Non-interest income		3,943		4,051		4,219		3,753		3,836		(108)		-3 %		107		3 %
Non-interest expense		11,638		11,497		11,320		11,013		10,640		141		1 %		998		9 %
Income before income taxes		5,604		4,822		4,986		(6,485)		4,179		782		16 %		1,425		34 %
Provision for income taxes		1,458		1,204		1,056		(1,752)		1,035		254		21 %		423		41 %
Net Income		4,146		3,618		3,930		(4,733)		3,144		528		15 %		1,002		32 %
Earnings per share - basic		$ 0.84		$ 0.73		$ 0.80		$ (0.97)		$ 0.64		$ 0.11		15 %		$ 0.20		30 %
Earnings per share - diluted		$ 0.84		$ 0.73		$ 0.80		$ (0.97)		$ 0.64		$ 0.11		15 %		$ 0.20		30 %

OAKWORTH CAPITAL INC.

CONSOLIDATED CONDENSED STATEMENTS OF INCOME (Unaudited)
(in thousands)		YTD Period Ended
		9/30/2024		9/30/2023		Change

Interest income:
Loans, including fees		$ 70,983		$ 53,261		$ 17,722		33 %
Securities available for sale		3,320		2,533		787		31 %
Short term investments		2,953		3,508		(555)		-16 %
Total interest income		77,256		59,302		17,954		30 %
Interest expense:
Deposits		34,914		22,512		12,402		55 %
Borrowings		2,845		2,807		38		1 %
Total interest expense		37,759		25,319		12,440		49 %
Net interest income		39,497		33,983		5,514		16 %
Provision for credit losses		1,842		1,883		(41)		-2 %
Net interest income after provision	37,655		32,100		5,555		17 %
for loan losses
Non-interest income		12,213		10,526		1,687		16 %
Non-interest expense		34,455		30,237		4,218		14 %
Income before income taxes		15,413		12,389		3,024		24 %
Provision for income taxes		3,719		2,981		738		25 %
Net Income		11,694		9,408		2,286		24 %
Earnings per share - basic		$ 2.37		$ 1.93		$ 0.44		23 %
Earnings per share - diluted		$ 2.37		$ 1.93		$ 0.44		23 %

SOURCE Oakworth Capital Inc.

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