Oakworth Capital Inc. Reports 23% Increase in Year-to-Date Diluted EPS

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Oct 21, 2024, 09:05 ET

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 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
	9/30/2024	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 %