Oakworth Capital Inc. Reports 45% Increase in Core Diluted EPS in 2022
Poised for Continued Growth in 2023 and Beyond
BIRMINGHAM, Ala., Feb. 10, 2023 /PRNewswire/ -- Oakworth Capital Inc. (Oakworth) (OTCQX: OAKC) reported accelerating growth in net income and revenue (adjusted for significant items in prior and current years1) in fiscal year 2022.
Oakworth's Chairman and CEO Scott Reed commented, "We began 2022 with an intentional focus on positioning ourselves to export our unique business model in dynamic markets in the Southeast. Our team has done just that with a 47% increase in core1 earnings and a 34% increase in core1 revenue while maintaining exceptionally high client and associate satisfaction."
Oakworth measures client satisfaction via its Net Promoter Score (NPS) of 962 and associate satisfaction via associate retention rate of 96%2.
Net income for full year 2022 was $11.5 million with total revenue of $51.8 million. Earnings per share were $2.36 on an adjusted, diluted basis, up from $1.62 per share on the same basis in the prior year. The driver of revenue growth during 2022 was a 27% increase in net interest income (43% when excluding 2021 PPP fees) and a 10% increase in wealth management fees, which was affected by market impact on asset valuations.
"We are pleased that the source of our net interest income growth is not only a widening margin, but also significant growth in our loan portfolio, particularly in our recently added Middle Tennessee market," continued Reed. "We look forward to continued growth across our franchise including in the Central Carolinas when our Charlotte-based office opens later this year3."
Oakworth's history of pristine credit quality continued with $0 charge-offs, $0 non-performing assets and $0 90-day past due loans as of and for the year ended December 31, 2022. Wealth assets ended the year at $1.8 billion and deposits were 7.5% higher than the prior year in spite of industry trends.
Oakworth's capital position remains strong. At December 31, 2022, Tier 1 Capital was 10.8%, the Total Capital Ratio was 11.8% and the Leverage Ratio was 9.7%.
1See reconciliation of GAAP-reported results to adjusted/core results in the table below.
2NPS 96 out of 100 for the period January 2022 to January 2023 and associate retention for 2022.
3Subject to receipt of customary regulatory approvals, the office will operate as a full-service branch.
OAKWORTH CAPITAL INC. | ||||||
WEALTH AND TRUST (Unaudited) | ||||||
(millions) | December 31, | |||||
2022 | 2021 | Change | ||||
Wealth assets (non-balance sheet) | $ 1,802 | $ 1,993 | -10 % | |||
CONSOLIDATED CONDENSED STATEMENTS OF CONDITION (Unaudited) | ||||||
(thousands) | December 31, | |||||
2022 | 2021 | Change | ||||
Assets | ||||||
Cash and due from banks | $ 185,483 | $ 327,070 | -43 % | |||
Federal funds sold | 4,475 | 4,701 | -5 % | |||
Securities available for sale | 132,050 | 105,503 | 25 % | |||
Loans, net of unearned income | 974,398 | 745,364 | 31 % | |||
Allowance for loan losses | (11,692) | (9,316) | 26 % | |||
Loans, net | 962,706 | 736,048 | 31 % | |||
Fixed assets | 3,129 | 3,522 | -11 % | |||
Interest receivable | 4,263 | 2,376 | 79 % | |||
Other assets | 43,348 | 27,129 | 60 % | |||
Total assets | $ 1,335,454 | $ 1,206,349 | 11 % | |||
Liabilities and Stockholders' Equity | ||||||
Liabilities: | ||||||
Deposits: | ||||||
Non-interest-bearing deposits | $ 315,033 | $ 319,341 | -1 % | |||
Interest-bearing deposits | 861,401 | 774,679 | 11 % | |||
Total deposits | 1,176,434 | 1,094,020 | 8 % | |||
Total Borrowings | 34,112 | - | ||||
Accrued interest payable | 840 | 40 | 2000 % | |||
Other liabilities | 20,310 | 8,001 | 154 % | |||
Total liabilities | 1,231,696 | 1,102,061 | 12 % | |||
Total stockholders' equity | 103,758 | 104,288 | -1 % | |||
Total liabilities and stockholders' equity | $ 1,335,454 | $ 1,206,349 | 11 % | |||
CONSOLIDATED CONDENSED STATEMENTS OF INCOME (Unaudited) | ||||||||||||
(thousands) | Quarter-to-Date | Year-to-Date | ||||||||||
December 31, | December 31, | |||||||||||
2022 | 2021 | Change | 2022 | 2021 | Change | |||||||
Interest income: | ||||||||||||
Loans, including fees | $ 13,643 | $ 7,792 | 75 % | $ 40,682 | $ 29,724 | 37 % | ||||||
Securities available for sale | 797 | 531 | 50 % | 2,849 | 2,014 | 41 % | ||||||
Short term investments | 1,161 | 90 | 1190 % | 2,094 | 167 | 1154 % | ||||||
Total interest income | 15,601 | 8,413 | 85 % | 45,625 | 31,905 | 43 % | ||||||
Interest expense: | ||||||||||||
Deposits | 3,782 | 236 | 1503 % | 5,688 | 1,000 | 469 % | ||||||
Borrowings | 548 | - | 100 % | 806 | - | 100 % | ||||||
Total interest expense | 4,330 | 236 | 1735 % | 6,494 | 1,000 | 549 % | ||||||
Net interest income | 11,271 | 8,177 | 38 % | 39,131 | 30,905 | 27 % | ||||||
Provision for loan losses | 452 | 486 | 7 % | 2,376 | 1,026 | 132 % | ||||||
Net interest income after provision | ||||||||||||
for loan losses | 10,819 | 7,691 | 41 % | 36,755 | 29,879 | 23 % | ||||||
Non-interest income | 3,095 | 3,127 | -1 % | 12,638 | 11,267 | 12 % | ||||||
Non-interest expense | 9,518 | 7,376 | 29 % | 34,306 | 27,134 | 26 % | ||||||
Income before income taxes | 4,396 | 3,442 | 28 % | 15,087 | 14,012 | 8 % | ||||||
Provision for income taxes | 1,051 | 779 | 35 % | 3,588 | 3,278 | 9 % | ||||||
Net Income | $ 3,345 | $ 2,663 | 26 % | $ 11,499 | $ 10,734 | 7 % | ||||||
Earnings per share - basic | $ 0.69 | $ 0.55 | 25 % | $ 2.38 | $ 2.24 | 7 % | ||||||
Earnings per share - diluted | $ 0.68 | $ 0.55 | 25 % | $ 2.34 | $ 2.21 | 6 % | ||||||
RECONCILIATION OF GAAP RESULTS TO ADJUSTED RESULTS (Unaudited) | |||||||||||||||||
(in thousands) | |||||||||||||||||
2022 | 2021 | Change % | |||||||||||||||
2022 vs | Pre-tax | After-tax | Pre-tax | After-tax | Pre-tax | After-tax | |||||||||||
YTD December 31, 2022 | |||||||||||||||||
Earnings, GAAP | $ 15,087 | $ 11,499 | $ 14,012 | $ 10,734 | 7.7 % | 7.1 % | |||||||||||
Adjustments | |||||||||||||||||
PPP fees including interest | - | - | (3,456) | (2,651) | |||||||||||||
Credit to provision for loan losses | (250) | (190) | (250) | (191) | |||||||||||||
Goodwill writeoff | 375 | 285 | |||||||||||||||
Net impact | 125 | 95 | (3,706) | (2,842) | |||||||||||||
Earnings, adjusted | $ 15,212 | $ 11,594 | 10,306 | 7,892 | 47.6 % | 46.9 % | |||||||||||
Total Revenue, GAAP | $ 51,769 | $ 42,172 | 22.8 % | ||||||||||||||
Adjustments | |||||||||||||||||
PPP fees including interest | - | (3,456) | |||||||||||||||
Net impact | - | (3,456) | |||||||||||||||
Total revenue, adjusted | $ 51,769 | $ 38,716 | 33.7 % | ||||||||||||||
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 (January 2022 to January 2023) and has a client retention rate of 95% in 2022. As of Dec. 31, 2022, Oakworth had $1.3 billion in total assets, $974 million in gross loans, $1.2 billion in deposits and $1.8 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]
SOURCE Oakworth Capital Inc.
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