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

News provided by

Nov 13, 2023, 11:49 ET

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: [email protected]

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 %