Oakworth Capital Inc. Reports 19% Growth in Net Income

Deposit growth accompanied an 80% quarterly reduction in borrowings, while provisions for credit losses increased.

Rhea-AI Summary

Oakworth Capital (OAKC) reported 19% growth in net income for the year-to-date period ended September 30, 2026, versus 2025. Net income reached $17.2 million, while diluted earnings per share rose 13% to $3.27. Revenue increased 17% to $70.7 million, and non-interest expenses rose 10% to $42.5 million.

Third-quarter net income increased 28% year over year to $6.476 million, with diluted earnings per share up 18% to $1.19. Period-end loans grew 16% year over year to $1.8 billion, deposits rose 17% to $2.0 billion, and wealth assets increased 17% to $3.00 billion. Borrowings fell 80% from June 30 to $38.345 million.

A private placement closed September 25, raising $15.4 million through 367,330 common shares priced at $42.00 each. Third-quarter provisions for credit losses increased 139% year over year to $2.161 million.

18 points · 0 major

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0 major · 7 points

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Positive

• Moderate pointYear-to-date net income rose 19% to $17.2 million versus $14.5 million in 2025.
• Moderate pointYear-to-date revenue grew 17% to $70.7 million from $60.6 million.
• Moderate pointYear-to-date net interest income increased 16% year over year.
• Moderate pointPeriod-end loans grew 16% year over year to $1.8 billion; average loans grew 14%.
• Moderate pointPeriod-end deposits grew 17% year over year to $2.0 billion, up 13% sequentially; average deposits grew 12%.
• Moderate pointWealth assets increased 17% year over year to $3.00 billion, up 1% sequentially.
• Moderate pointCompleted private placement raised $15.4 million in common equity on September 25, 2026. 7.4% of market cap

11 minor points

• Minor pointYear-to-date diluted earnings per share increased 13% to $3.27 from $2.90.
• Minor pointYear-to-date trust and wealth fees increased 22% year over year.
• Minor pointYear-to-date pre-tax income before credit-loss provisions rose 28% to $28.3 million.
• Minor pointThird-quarter net income rose 28% year over year to $6.476 million, up 10% sequentially.
• Minor pointThird-quarter diluted earnings per share rose 18% year over year to $1.19, up 5% sequentially.
• Minor pointThird-quarter net interest income increased 19% year over year to $19.623 million, up 6% sequentially.
• Minor pointThird-quarter non-interest income increased 22% year over year to $5.375 million, up 8% sequentially.
• Minor pointThird-quarter deposit interest expense fell 6% year over year to $10.662 million, despite rising 7% sequentially.
• Minor pointTotal assets increased 15% year over year to $2.218 billion, up 4% sequentially.
• Minor pointBorrowings declined 80% sequentially to $38.345 million, down 35% year over year.
• Minor pointStockholders' equity increased 20% year over year to $172.587 million, up 6% sequentially.

Negative

• Moderate pointPrivate placement issued 367,330 common shares at $42.00 each, diluting existing holders.
• Moderate pointYear-to-date non-interest expenses increased 10% to $42.5 million from $38.5 million.
• Moderate pointThird-quarter credit-loss provisions increased 139% year over year to $2.161 million, up 8% sequentially. 1% of market cap
• Minor pointThird-quarter non-interest expense increased 8% year over year to $14.269 million, up 4% sequentially.
• Minor pointThird-quarter borrowing interest expense increased 48% year over year to $1.652 million, up 3% sequentially.

2 minor points

• Minor pointNon-performing loans totaled $9.7 million; other real estate totaled $3.4 million.
• Minor pointYear-to-date net charge-offs totaled $3.1 million, including $1.3 million in the third quarter.

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BIRMINGHAM, Ala., Oct. 22, 2026 /PRNewswire/ -- Oakworth Capital Inc. (OTCQX: OAKC) reported 19% net income growth and 13% diluted EPS growth in the year-to-date period ended September 30, 2026 compared to the same period in 2025.  Realization of returns on past investments has been a focus that is evident in a 57% third quarter efficiency ratio and 1.2% third quarter return on assets.  Strong balance sheet and wealth asset growth was also evident in the quarter and year-to-date periods with wealth assets growing 17% year-over-year, loans growing 16% compared to 2025 and deposits up 17% over 2025.  Linked quarter deposit growth was particularly strong at 13% (52% annualized).  Oakworth's Chairman and CEO Scott Reed stated, "We are pleased with the profitable, balanced growth we experienced in third quarter.  We appreciate the support for our story that was evidenced by the completion of a $15.4 million common equity capital raise in the quarter, and we look forward to working hard to deliver value for our new and existing shareholders."

As of and year-to-date September 30, 2026 highlights include:

Income/Profitability:

• Net income of $17.2 million compared to $14.5 million year-to-date 2025
• Diluted earnings per share of $3.27 compared to $2.90 year-to-date 2025
• Pre-tax pre-provision income of $28.3 million compared to $22.1 million in same period of 2025 (+28%)
• Revenue of $70.7 million: 17% higher than $60.6 million year-to-date 2025
  • 16% year-over-year growth in net interest income
  • 22% year-over-year growth in trust and wealth fees
• Non-interest expenses of $42.5 million compared to $38.5 million year-to-date 2025
  • 10% higher year-over-year
• ROAE of 14.4%
• ROAA of 1.1%

Wealth Assets/Balance Sheet:

• Wealth assets of $3.00 billion, 17% higher than $2.57 billion one year prior
• Year-over-year loan growth of 14% on average basis and 16% on period end basis to $1.8 billion
• Year-over-year deposit growth of 12% on average basis and 17% on period end basis to $2.0 billion
• Tangible book value per share: $32.34
  • Includes $15.8 million or $2.96 per share AOCI mark-to-market adjustment attributable solely to interest rate movements

Safety and Soundness:

• Credit quality metrics: 
  • $9.7 million non-performing loans
  • $3.4 million ORE
  • 0.73% NPA ratio
  • $3.1 million net charge-offs, including $1.3 million in 3Q26
  • 1.2% allowance for credit losses as percentage of loans, net
• Capital
  • The Company sold a total of $15.4 million in common equity, or 367,330 shares of Oakworth common stock at $42.00 per share in a private placement offering that closed on September 25, 2026
  • Total risk-based capital: 12.3%
  • CET1: 11.1%
  • Tier 1 leverage: 9.8%

About Oakworth Capital Inc. and Oakworth Capital Bank
Oakworth Capital, Inc. operates as the bank holding company for Oakworth Capital Bank (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 in the U.S." for the past nine years, holding the top spot for six of those years and ranking No. 2 most recently. Additionally, Oakworth's 2025 average Net Promoter Score (NPS) was 95 with a commensurate client retention rate of 95%. As of September 30, 2026, Oakworth had $2.2 billion in total assets, $1.8 billion in gross loans, $2.0 billion in deposits and $3.0 billion in wealth and trust assets under management. For more information, visit www.oakworth.com. 

Advisory services, including investment management and financial planning, are offered through Oakworth Asset Management LLC, a registered investment advisor that is owned by Oakworth Capital Bank, Member FDIC, Equal Housing Lender. Investment products and services offered via Oakworth Asset Management LLC are independent of the products and services offered by Oakworth Capital Bank, and are not FDIC insured, may lose value, have no bank guarantee, and are not insured by any federal or state government agency. Because Oakworth Asset Management LLC is owned by Oakworth Capital Bank and because associates of either entity may provide financial advice to our clients, there exists a conflict of interest to the extent that either party recommends the services of the other. Oakworth Asset Management LLC does not provide tax or legal advice. You should consult your tax advisor, accountant, and/or attorney before making any decisions with tax or legal implications. Additional information about Oakworth Asset Management LLC, including its services and fees, may be obtained from adviserinfo.sec.gov or by contacting Oakworth Asset Management directly.

OAKWORTH CAPITAL INC.
WEALTH AND TRUST (Unaudited)
(In millions)		As of										Change				Change
		9/30/2026		6/30/2026		3/31/2026		12/31/2025		9/30/2025		9/30/2026 vs. 6/30/2026				9/30/2026 vs. 9/30/2025
Wealth assets (non-balance sheet)		$           3,000		$           2,957		$           2,705		$           2,685		$           2,566		$               43		1 %		$             434		17 %
CONSOLIDATED CONDENSED STATEMENTS OF CONDITION (Unaudited)
(in thousands)		As of										Change				Change
		9/30/2026		6/30/2026		3/31/2026		12/31/2025		9/30/2025		9/30/2026 vs. 6/30/2026				9/30/2026 vs. 9/30/2025
Assets
Cash and due from banks		$       154,630		$       128,029		$       113,891		$       194,946		$       153,084		$         26,601		21 %		$           1,546		1 %
Federal funds sold		1,025		1,050		1,951		1,325		950		(25)		-2 %		75		8 %
Securities available for sale		234,034		226,098		213,286		201,684		189,673		7,936		4 %		44,361		23 %
Loans, net of unearned income		1,780,861		1,725,998		1,665,422		1,604,023		1,533,734		54,863		3 %		247,127		16 %
Allowance for credit losses		(21,577)		(20,754)		(19,871)		(19,348)		(18,734)		(823)		4 %		(2,843)		15 %
Loans, net		1,759,284		1,705,244		1,645,551		1,584,675		1,515,000		54,040		3 %		244,284		16 %
Fixed assets		3,333		3,326		3,447		3,625		3,821		7		0 %		(488)		-13 %
Interest receivable		7,698		7,516		7,560		7,246		6,845		182		2 %		853		12 %
Other assets		57,572		59,859		54,169		52,723		52,825		(2,287)		-4 %		4,747		9 %
Total assets		$    2,217,576		$    2,131,122		$    2,039,855		$    2,046,224		$    1,922,198		$         86,454		4 %		$       295,378		15 %
Liabilities and Stockholders' Equity
Liabilities:
Deposits:
Non-interest bearing deposits		$       373,868		$       319,544		$       320,493		$       304,683		$       300,340		$         54,324		17 %		$         73,528		24 %
Interest-bearing deposits		1,611,617		1,438,204		1,467,134		1,526,302		1,397,942		173,413		12 %		213,675		15 %
Total deposits		1,985,485		1,757,748		1,787,627		1,830,985		1,698,282		227,737		13 %		287,203		17 %
Total Borrowings		38,345		188,322		78,299		38,831		58,809		(149,977)		-80 %		(20,464)		-35 %
Accrued interest payable		537		1,299		598		1,223		710		(762)		-59 %		(173)		-24 %
Other liabilities		20,622		20,464		20,950		26,521		20,657		158		1 %		(35)		0 %
Total liabilities		2,044,989		1,967,833		1,887,474		1,897,560		1,778,458		77,156		4 %		266,531		15 %
Total stockholders' equity		172,587		163,289		152,381		148,664		143,740		9,298		6 %		28,847		20 %
Total liabilities and stockholders' equity		$    2,217,576		$    2,131,122		$    2,039,855		$    2,046,224		$    1,922,198		$         86,454		4 %		$       295,378		15 %

 

OAKWORTH CAPITAL INC.
CONSOLIDATED CONDENSED STATEMENTS OF INCOME (Unaudited)
(in thousands)		Quarter Ended										Change				Change
		9/30/2026		6/30/2026		3/31/2026		12/31/2025		9/30/2025		3Q26 vs. 2Q26				3Q26 vs. 3Q25
Interest income:
Loans, including fees		$         28,439		$         26,711		$         25,373		$         25,817		$         26,194		$           1,728		6 %		$           2,245		9 %
Securities available for sale		2,370		2,219		2,015		1,814		1,667		151		7 %		703		42 %
Short term investments		1,128		1,049		1,201		1,772		1,058		79		8 %		70		7 %
Total interest income		31,937		29,979		28,589		29,403		28,919		1,958		7 %		3,018		10 %
Interest expense:
Deposits		10,662		9,931		10,375		11,289		11,357		731		7 %		(695)		-6 %
Borrowings		1,652		1,605		763		678		1,114		47		3 %		538		48 %
Total interest expense		12,314		11,536		11,138		11,967		12,471		778		7 %		(157)		-1 %
Net interest income		19,623		18,443		17,451		17,436		16,448		1,180		6 %		3,175		19 %
Provision for credit losses		2,161		2,007		1,315		1,010		905		154		8 %		1,256		139 %
Net interest income after provision		17,462		16,436		16,136		16,426		15,543		1,026		6 %		1,919		12 %
for loan losses
Non-interest income		5,375		4,994		4,837		4,647		4,392		381		8 %		983		22 %
Non-interest expense		14,269		13,664		14,538		14,634		13,223		605		4 %		1,046		8 %
Income before income taxes		8,568		7,766		6,435		6,439		6,712		802		10 %		1,856		28 %
Provision for income taxes		2,092		1,901		1,565		1,145		1,653		191		10 %		439		27 %
Net Income		6,476		5,865		4,870		5,294		5,059		611		10 %		1,417		28 %
Earnings per share - basic		$            1.23		$            1.15		$            0.96		$            1.05		$            1.01		$            0.08		7 %		$            0.22		22 %
Earnings per share - diluted		$            1.19		$            1.13		$            0.94		$            1.04		$            1.01		$            0.06		5 %		$            0.18		18 %

 

OAKWORTH CAPITAL INC.
CONSOLIDATED CONDENSED STATEMENTS OF INCOME (Unaudited)
(in thousands)		YTD Period Ended
		9/30/2026			9/30/2025		Change
Interest income:
Loans, including fees		$         80,523			$         76,302		$           4,221		6 %
Securities available for sale		6,604			4,745		1,859		39 %
Short term investments		3,378			3,270		108		3 %
Total interest income		90,505			84,317		6,188		7 %
Interest expense:
Deposits		30,968			33,673		(2,705)		-8 %
Borrowings		4,021			2,773		1,248		45 %
Total interest expense		34,989			36,446		(1,457)		-4 %
Net interest income		55,516			47,871		7,645		16 %
Provision for credit losses		5,482			2,915		2,567		88 %
Net interest income after provision		50,034			44,956		5,078		11 %
for loan losses
Non-interest income		15,207			12,768		2,439		19 %
Non-interest expense		42,472			38,511		3,961		10 %
Income before income taxes		22,769			19,213		3,556		19 %
Provision for income taxes		5,558			4,742		816		17 %
Net Income		17,211			14,471		2,740		19 %
Earnings per share - basic		$            3.34			$             2.90		$            0.44		15 %
Earnings per share - diluted		$            3.27			$             2.90		$            0.37		13 %

For more information contact:
Jenifer Kimbrough
Phone: 205-263-4704
Email: jenifer.kimbrough@oakworth.com

View original content to download multimedia:https://www.prnewswire.com/news-releases/oakworth-capital-inc-reports-19-growth-in-net-income-302917215.html

SOURCE Oakworth Capital Inc.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

How much did Oakworth Capital's earnings grow through September 2026?

Oakworth's year-to-date net income increased 19% to $17.2 million, compared with $14.5 million in the same period of 2025. Diluted earnings per share increased 13% to $3.27 from $2.90.

What were the terms of Oakworth Capital's September 2026 equity raise?

Oakworth raised $15.4 million by selling 367,330 common shares at $42.00 per share in a private placement. The offering closed on September 25, 2026.

What capital ratios did Oakworth Capital report at September 30, 2026?

Oakworth reported a 12.3% total risk-based capital ratio, an 11.1% common equity Tier 1 ratio and a 9.8% Tier 1 leverage ratio at September 30, 2026.

What credit-quality measures did Oakworth Capital report for September 2026?

Oakworth reported $9.7 million in non-performing loans and a 0.73% non-performing asset ratio. Other real estate totaled $3.4 million. The allowance for credit losses was 1.2% of loans, net, and year-to-date net charge-offs totaled $3.1 million, including $1.3 million in the third quarter.

What was Oakworth Capital's tangible book value per share at September 30, 2026?

Oakworth reported $32.34 in tangible book value per share. This included a $15.8 million, or $2.96 per share, accumulated other comprehensive income mark-to-market adjustment attributable solely to interest-rate movements.