Oakworth Capital Inc. Reports 19% Increase in Year-to-Date Diluted EPS

Rhea-AI Summary

Oakworth Capital Inc. (OTCQX: OAKC) reported strong financial results for Q2 2024 and the first half of the year. Net income reached $3.6 million in Q2 and $7.5 million year-to-date, marking a 20% increase from the same period in 2023. Diluted earnings per share rose to $1.53 in H1 2024, up from $1.28 in H1 2023. The company experienced significant growth across key metrics:

- Total loans: up 23%
- Total deposits: up 14%
- Wealth assets: up 11%
- Revenue: up 16% to $33.9 million
- Pre-tax, pre-provision income: up 14%

Oakworth's return on average equity stood at 13.3%, while return on average assets was 1.0% for H1 2024. The company's capital ratios remained strong, with Tier 1 Capital at 9.7%, Total Capital Ratio at 10.7%, and Leverage Ratio at 9.4% as of June 30, 2024.

Positive

• Net income increased by 20% year-over-year to $7.5 million in H1 2024
• Diluted EPS grew 19% to $1.53 in H1 2024 compared to $1.28 in H1 2023
• Total loans increased by 23% compared to June 30, 2023
• Total deposits grew by 14% year-over-year
• Wealth assets expanded by 11% compared to the previous year
• Revenue improved by 16% to $33.9 million in H1 2024
• Pre-tax, pre-provision income increased by 14% year-over-year
• Return on average equity reached 13.3% in H1 2024
• Strong capital ratios with Tier 1 Capital at 9.7% and Total Capital Ratio at 10.7%

Negative

• None.

BIRMINGHAM, Ala., July 25, 2024 /PRNewswire/ -- Oakworth Capital Inc. (Oakworth) (OTCQX: OAKC) reported net income of $3.6 million in second quarter 2024 and $7.5 million year-to-date 2024, up 20% from $6.3 million in the same period of 2023.  Diluted earnings per share was $1.53 in the first half of 2024 compared to $1.28 in the first half of 2023.  Oakworth's balance sheet performed well with 23% growth in total loans and 14% in total deposits, accompanied by 11% growth of wealth assets all relative to June 30, 2023. 

Resulting revenue improved 16% to $33.9 million in the first half of 2024 compared to $29.3 million in the same period of 2023.  Pre-tax, pre-provision income was up 14% year-over-year.  Return on average equity is 13.3% and return on average assets is 1.0% in the first half of 2024.

Oakworth's Chairman and CEO Scott Reed stated, "Our associates consistently deliver a unique and exceptional service experience to our clients, simplifying their financial lives while upholding our core values. As a result, we are experiencing double-digit growth across all disciplines. We continue to focus on balanced and profitable growth and the realization of return on the strategic investments we made in 2023 as we enter the last half of 2024."

At June 30, 2024, Tier 1 Capital was 9.7%, the Total Capital Ratio was 10.7% and the Leverage Ratio was 9.4%.

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 June 30, 2024, Oakworth had $1.6 billion in total assets, $1.4 billion in gross loans, $1.4 billion in deposits and $2.2 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: jenifer.kimbrough@oakworth.com

OAKWORTH CAPITAL INC.
WEALTH AND TRUST (Unaudited)
(In millions)		As of										Change				Change
		6/30/2024		3/31/2024		12/31/2023		9/30/2023		6/30/2023		6/30/2024 vs. 3/31/2024				6/30/2024 vs. 6/30/2023
Wealth assets (non-balance sheet)		$           2,200		$           2,156		$           2,016		$           1,896		$           1,987		$                45		2 %		$              214		11 %
CONSOLIDATED CONDENSED STATEMENTS OF CONDITION (Unaudited)
(in thousands)		As of										Change				Change
		6/30/2024		3/31/2024		12/31/2023		9/30/2023		6/30/2023		6/30/2024 vs. 3/31/2024				6/30/2024 vs. 6/30/2023
Assets
Cash and due from banks		$         71,623		$       126,215		$       158,403		$       116,065		$       140,421		$        (54,592)		-43 %		$        (68,798)		-49 %
Federal funds sold		75		1,650		3,925		2,225		3,825		(1,575)		-95 %		(3,750)		-98 %
Securities available for sale		151,379		147,576		143,947		137,907		135,433		3,803		3 %		15,946		12 %
Loans, net of unearned income		1,357,150		1,280,129		1,244,133		1,146,526		1,107,028		77,021		6 %		250,122		23 %
Allowance for loan losses		(15,895)		(15,048)		(14,652)		(13,575)		(13,144)		(847)		6 %		(2,751)		21 %
Loans, net		1,341,255		1,265,081		1,229,481		1,132,951		1,093,884		76,174		6 %		247,371		23 %
Fixed assets		4,820		4,998		4,681		4,758		4,626		(178)		-4 %		194		4 %
Interest receivable		6,903		6,279		6,284		5,932		4,791		624		10 %		2,112		44 %
Other assets		56,200		47,856		48,506		50,209		45,999		8,344		17 %		10,201		22 %
Total assets		$     1,632,255		$     1,599,655		$     1,595,227		$     1,450,047		$     1,428,979		$         32,600		2 %		$       203,276		14 %
Liabilities and Stockholders' Equity
Liabilities:
Deposits:
Non-interest bearing deposits		$       274,968		$       266,083		$       319,986		$       278,822		$       301,821		$           8,885		3 %		$        (26,853)		-9 %
Interest-bearing deposits		1,124,013		1,166,594		1,105,921		963,044		922,391		(42,581)		-4 %		201,622		22 %
Total deposits		1,398,981		1,432,677		1,425,907		1,241,866		1,224,212		(33,696)		-2 %		174,769		14 %
Total Borrowings		94,250		34,227		34,204		74,180		74,158		60,023		175 %		20,092		27 %
Accrued interest payable		1,517		703		1,070		455		982		814		116 %		535		54 %
Other liabilities		19,474		18,005		23,794		21,840		17,960		1,469		8 %		1,514		8 %
Total liabilities		1,514,222		1,485,612		1,484,975		1,338,341		1,317,312		28,610		2 %		196,910		15 %
Total stockholders' equity		118,033		114,043		110,252		111,706		111,667		3,990		3 %		6,366		6 %
Total liabilities and stockholders' equity		$     1,632,255		$     1,599,655		$     1,595,227		$     1,450,047		$     1,428,979		$         32,600		2 %		$       203,276		14 %

 

OAKWORTH CAPITAL INC.
CONSOLIDATED CONDENSED STATEMENTS OF INCOME (Unaudited)
(in thousands)		Quarter Ended										Change				Change
		6/30/2024		3/31/2024		12/31/2023		9/30/2023		6/30/2023		2Q24 vs. 1Q23				2Q24 vs. 2Q23
Interest income:
Loans, including fees		$         23,505		$         22,056		$         20,322		$         19,204		$         18,193		$           1,449		7 %		$           5,312		29 %
Securities available for sale		1,101		1,030		977		899		825		71		7 %		276		33 %
Short term investments		982		1,134		1,463		1,608		991		(152)		-13 %		(9)		-1 %
Total interest income		25,588		24,220		22,762		21,711		20,009		1,368		6 %		5,579		28 %
Interest expense:
Deposits		11,429		11,189		9,976		9,200		7,585		240		2 %		3,844		51 %
Borrowings		1,044		548		1,219		1,097		1,072		496		91 %		(28)		-3 %
Total interest expense		12,473		11,737		11,195		10,297		8,657		736		6 %		3,816		44 %
Net interest income		13,115		12,483		11,567		11,414		11,352		632		5 %		1,763		16 %
Provision for loan losses		847		396		10,792		431		335		451		114 %		512		153 %
Net interest income after provision		12,268		12,087		775		10,983		11,017		181		1 %		1,251		11 %
for loan losses
Non-interest income		4,051		4,219		3,753		3,836		3,392		(168)		-4 %		659		19 %
Non-interest expense		11,497		11,320		11,013		10,640		10,151		177		2 %		1,346		13 %
Income before income taxes		4,822		4,986		(6,485)		4,179		4,258		(164)		-3 %		564		13 %
Provision for income taxes		1,204		1,056		(1,752)		1,035		1,011		148		14 %		193		19 %
Net Income		3,618		3,930		(4,733)		3,144		3,247		(312)		-8 %		371		11 %
Earnings per share - basic		$             0.73		$             0.80		$            (0.97)		$             0.64		$             0.66		$            (0.07)		-8 %		$             0.07		10 %
Earnings per share - diluted		$             0.73		$             0.80		$            (0.97)		$             0.64		$             0.66		$            (0.07)		-8 %		$             0.07		10 %

 

OAKWORTH CAPITAL INC.
CONSOLIDATED CONDENSED STATEMENTS OF INCOME (Unaudited)
(in thousands)		YTD Period Ended
		6/30/2024			6/30/2023		Change
Interest income:
Loans, including fees		$         45,560			$         34,057		$         11,503		34 %
Securities available for sale		2,132			1,635		497		30 %
Short term investments		2,116			1,900		216		11 %
Total interest income		49,808			37,592		12,216		32 %
Interest expense:
Deposits		22,618			13,314		9,304		70 %
Borrowings		1,592			1,709		(117)		-7 %
Total interest expense		24,210			15,023		9,187		61 %
Net interest income		25,598			22,569		3,029		13 %
Provision for loan losses		1,243			1,452		(209)		-14 %
Net interest income after provision		24,355			21,117		3,238		15 %
for loan losses
Non-interest income		8,271			6,690		1,581		24 %
Non-interest expense		22,817			19,598		3,219		16 %
Income before income taxes		9,809			8,209		1,600		19 %
Provision for income taxes		2,261			1,945		316		16 %
Net Income		7,548			6,264		1,284		20 %
Earnings per share - basic		$             1.53			$             1.28		$             0.25		19 %
Earnings per share - diluted		$             1.53			$             1.28		$             0.25		19 %

 

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SOURCE Oakworth Capital Inc.

FAQ

What was Oakworth Capital's net income for Q2 2024?

Oakworth Capital Inc. (OAKC) reported a net income of $3.6 million for the second quarter of 2024.

How much did Oakworth Capital's diluted EPS increase in H1 2024?

Oakworth Capital's (OAKC) diluted earnings per share increased by 19%, from $1.28 in H1 2023 to $1.53 in H1 2024.

What was the growth rate of Oakworth Capital's total loans as of June 30, 2024?

Oakworth Capital (OAKC) reported a 23% growth in total loans compared to June 30, 2023.

How much did Oakworth Capital's revenue increase in H1 2024?

Oakworth Capital's (OAKC) revenue improved by 16%, reaching $33.9 million in the first half of 2024 compared to $29.3 million in the same period of 2023.

What was Oakworth Capital's return on average equity for H1 2024?

Oakworth Capital (OAKC) reported a return on average equity of 13.3% for the first half of 2024.