Oakworth Capital Inc. Reports 45% Increase in Core Diluted EPS in 2022

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Feb 10, 2023, 12:39 ET

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 2021					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.