Oakworth Capital Inc. Reports Strong Profitability Growth in Fiscal Year 2024

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Jan 24, 2025, 13:01 ET

BIRMINGHAM, Ala., Jan. 24, 2025 /PRNewswire/ -- Oakworth Capital Inc. (Oakworth) (OTCQX: OAKC) reported net income of $15.8 million in 2024 compared to $4.7 million in 2023. Net income was 38.5% higher than 2023 core net income of $11.4 million¹. Diluted earnings per share was $3.19 in 2024 compared to $0.96 in 2023 on a reported basis and $2.33 on a core basis. Pre-tax, pre-provision income was $23.6 million and 27% higher in 2024 vs. 2023. Strategic investments, primarily related to the opening of our Central Carolinas office, resulted in positive operating leverage with revenue increasing 18% year-over-year to $71 million in 2024. Expense growth was 14% in the same period.

Oakworth reported a 14% increase in wealth assets to $2.3 billion and a 12% increase in total bank assets to $1.8 billion, both year-over-year. Period-end loans grew 17% to $1.5 billion and average loans grew 21% in 2024 vs. 2023. Period-end deposits grew 12% to $1.6 billion and average deposits grew 20% in 2024 vs. 2023.

Oakworth's Chairman and CEO Scott Reed stated, "Our growth and profitable performance in 2024 set the stage for an exciting 2025. We look forward to expanding on our success by continuing to deliver exceptional levels of service and innovative solutions to new and existing clients across our markets."

Credit quality remains strong with net charge-offs of 0.03%, minimal non-performing loans ($325K) and $0 past due loans.

At December 31, 2024, Tier 1 Capital was 10.5%, the Total Capital Ratio was 11.6% and the Leverage Ratio was 9.5%.²

Additional Information:
¹2023 "core" results exclude $7.4 million, net of tax, for provisioning and interest related to a single credit and $672 thousand, net of tax, related to the Employee Retention Credit
²Certain risk-weighted assets related to unconditionally cancellable contracts were reclassified in the December 31, 2024 call report.

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 ranked among American Banker's "Best Banks to Work for" for the past eight years, holding the top spot for six of those and ranking #2 most recently. Additionally, Oakworth's 2024 average Net Promoter Score (NPS) was 94 with a commensurate client retention rate of 95%. As of December 31, 2024, Oakworth had $1.8 billion in total assets, $1.5 billion in gross loans, $1.6 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
	12/31/2024	9/30/2024	6/30/2024	3/31/2024	12/31/2023	12/31/2024 vs. 9/30/2024		12/31/2024 vs. 12/31/2023

Wealth assets (non-balance sheet)	$ 2,297	$ 2,308	$ 2,200	$ 2,156	$ 2,016	$ (11)	0 %	$ 281	14 %

CONSOLIDATED CONDENSED STATEMENTS OF CONDITION *(Unaudited)*
(in thousands)	As of					Change		Change
	12/31/2024	9/30/2024	6/30/2024	3/31/2024	12/31/2023	12/31/2024 vs. 9/30/2024		12/31/2024 vs. 12/31/2023
Assets
Cash and due from banks	$ 125,016	$ 117,265	$ 71,623	$ 126,215	$ 158,403	$ 7,751	7 %	$ (33,387)	-21 %
Federal funds sold	950	1,950	75	1,650	3,925	(1,000)	-51 %	(2,975)	-76 %
Securities available for sale	158,885	156,926	151,379	147,576	143,947	1,959	1 %	14,938	10 %
Loans, net of unearned income	1,455,238	1,411,569	1,357,150	1,280,129	1,244,133	43,669	3 %	211,105	17 %
Allowance for credit losses	(16,330)	(16,494)	(15,895)	(15,048)	(14,652)	164	-1 %	(1,678)	11 %
Loans, net	1,438,908	1,395,075	1,341,255	1,265,081	1,229,481	43,833	3 %	209,427	17 %
Fixed assets	4,420	4,647	4,820	4,998	4,681	(227)	-5 %	(261)	-6 %
Interest receivable	6,678	6,478	6,903	6,279	6,284	200	3 %	394	6 %
Other assets	54,084	54,396	56,200	47,856	48,506	(312)	-1 %	5,578	11 %
Total assets	$ 1,788,941	$ 1,736,737	$ 1,632,255	$ 1,599,655	$ 1,595,227	$ 52,204	3 %	$ 193,714	12 %

Liabilities and Stockholders' Equity
Liabilities:
Deposits:
Non-interest bearing deposits	$ 274,872	$ 255,008	$ 274,968	$ 266,083	$ 319,986	$ 19,864	8 %	$ (45,114)	-14 %
Interest-bearing deposits	1,321,864	1,268,998	1,124,013	1,166,594	1,105,921	52,866	4 %	215,943	20 %
Total deposits	1,596,736	1,524,006	1,398,981	1,432,677	1,425,907	72,730	5 %	170,829	12 %
Total Borrowings	39,296	64,273	94,250	34,227	34,204	(24,977)	-39 %	5,092	15 %
Accrued interest payable	1,149	643	1,517	703	1,070	506	79 %	79	7 %
Other liabilities	26,964	22,018	19,474	18,005	23,794	4,946	22 %	3,170	13 %
Total liabilities	1,664,145	1,610,940	1,514,222	1,485,612	1,484,975	53,205	3 %	179,170	12 %
Total stockholders' equity	124,796	125,797	118,033	114,043	110,252	(1,001)	-1 %	14,544	13 %
Total liabilities and stockholders' equity	$ 1,788,941	$ 1,736,737	$ 1,632,255	$ 1,599,655	$ 1,595,227	$ 52,204	3 %	$ 193,714	12 %

OAKWORTH CAPITAL INC.

CONSOLIDATED CONDENSED STATEMENTS OF INCOME *(Unaudited)*
(in thousands)	Quarter Ended					Change		Change
	12/31/2024	9/30/2024	6/30/2024	3/31/2024	12/31/2023	4Q24 vs. 3Q24		4Q24 vs. 4Q23

Interest income:
Loans, including fees	$ 25,141	$ 25,423	$ 23,505	$ 22,056	$ 20,322	$ (282)	-1 %	$ 4,819	24 %
Securities available for sale	1,257	1,187	1,101	1,030	977	70	6 %	280	29 %
Short term investments	1,222	837	982	1,134	1,463	385	46 %	(241)	-16 %
Total interest income	27,620	27,447	25,588	24,220	22,762	173	1 %	4,858	21 %
Interest expense:
Deposits	11,807	12,296	11,429	11,189	9,976	(489)	-4 %	1,831	18 %
Borrowings	804	1,253	1,044	548	1,219	(449)	-36 %	(415)	-34 %
Total interest expense	12,611	13,549	12,473	11,737	11,195	(938)	-7 %	1,416	13 %
Net interest income	15,009	13,898	13,115	12,483	11,567	1,111	8 %	3,442	30 %
Provision for credit losses	1,080	599	847	396	10,792	481	80 %	(9,712)	-90 %
Net interest income after provision	13,929	13,299	12,268	12,087	775	630	5 %	13,154	1697 %
for loan losses
Non-interest income	4,108	3,943	4,051	4,219	3,753	165	4 %	355	9 %
Non-interest expense	12,721	11,638	11,497	11,320	11,013	1,083	9 %	1,708	16 %
Income before income taxes	5,316	5,604	4,822	4,986	(6,485)	(288)	-5 %	11,801	182 %
Provision for income taxes	1,236	1,458	1,204	1,056	(1,752)	(222)	-15 %	2,988	171 %
Net Income	4,080	4,146	3,618	3,930	(4,733)	(66)	-2 %	8,813	186 %
Earnings per share - basic	$ 0.82	$ 0.84	$ 0.73	$ 0.80	$ (0.97)	$ (0.02)	-2 %	$ 1.79	185 %
Earnings per share - diluted	$ 0.82	$ 0.84	$ 0.73	$ 0.80	$ (0.97)	$ (0.02)	-2 %	$ 1.79	185 %

OAKWORTH CAPITAL INC.

CONSOLIDATED CONDENSED STATEMENTS OF INCOME *(Unaudited)*
(in thousands)	YTD Period Ended
	12/31/2024	12/31/2023	Change

Interest income:
Loans, including fees	$ 96,124	$ 73,584	$ 22,540	31 %
Securities available for sale	4,577	3,510	1,067	30 %
Short term investments	4,174	4,971	(797)	-16 %
Total interest income	104,875	82,065	22,810	28 %
Interest expense:
Deposits	46,721	32,490	14,231	44 %
Borrowings	3,648	4,025	(377)	-9 %
Total interest expense	50,369	36,515	13,854	38 %
Net interest income	54,506	45,550	8,956	20 %
Provision for credit losses	2,922	12,675	(9,753)	-77 %
Net interest income after provision	51,584	32,875	18,709	57 %
for loan losses
Non-interest income	16,320	14,278	2,042	14 %
Non-interest expense	47,176	41,250	5,926	14 %
Income before income taxes	20,728	5,903	14,825	251 %
Provision for income taxes	4,954	1,228	3,726	303 %
Net Income	15,774	4,675	11,099	237 %
Earnings per share - basic	$ 3.19	$ 0.96	$ 2.23	232 %
Earnings per share - diluted	$ 3.19	$ 0.96	$ 2.23	232 %