Oakworth Capital Inc. Reports 23% Increase in Year-to-Date Diluted EPS

Rhea-AI Summary

Oakworth Capital Inc. (OTCQX: OAKC) reported strong financial results for Q3 2024 and year-to-date 2024. Net income reached $4.1 million in Q3 and $11.7 million year-to-date, a 24% increase from the same period in 2023. Diluted earnings per share rose to $2.37 in the first three quarters of 2024, up from $1.93 in 2023.

The company experienced significant growth across key metrics: 23% increase in total loans, 19% increase in core deposits, 22% growth in wealth assets, and 20% increase in total assets year-over-year. Revenue growth (16%) outpaced expense growth (14%), resulting in a 21% increase in pre-tax, pre-provision income. The Central Carolinas office achieved profitability within 11 months of opening.

As of September 30, 2024, Oakworth's Tier 1 Capital was 9.7%, Total Capital Ratio was 10.7%, and Leverage Ratio was 9.3%. The company's CEO, Scott Reed, expressed satisfaction with the performance and anticipates a strong finish to 2024 and continued growth opportunities in 2025.

Positive

• Net income increased 24% year-over-year to $11.7 million
• Diluted EPS grew 23% to $2.37 in the first three quarters of 2024
• Total loans increased by 23% year-over-year
• Core deposits grew by 19% year-over-year
• Wealth assets expanded by 22% year-over-year
• Total assets increased by 20% year-over-year
• Pre-tax, pre-provision income rose 21% year-over-year
• Central Carolinas office achieved profitability within 11 months

Negative

• None.

Balanced Growth Results in Increasing Profitability

BIRMINGHAM, Ala., Oct. 21, 2024 /PRNewswire/ -- Oakworth Capital Inc. (Oakworth) (OTCQX: OAKC) reported net income of $4.1 million in third quarter 2024 and $11.7 million year-to-date 2024, up 24% from $9.4 million in the same period of 2023.  Diluted earnings per share was $2.37 in the first three quarters of 2024 compared to $1.93 in the same period of 2023.  Oakworth experienced continued strong growth with 23% increase in total loans, 19% increase in core deposits, 22% growth of wealth assets and 20% increase in total assets year-over-year.   

Revenue growth (16% year-over-year) exceeded growth in overall expenses (14% year-over-year) resulting in pre-tax, pre-provision income increasing 21% year-over-year.  Return on average equity is 13.4% and return on average assets is 1.0% year-to-date September 30. Oakworth's Central Carolinas office achieved incremental profitability in the quarter, 11 months after opening. 

Oakworth's Chairman and CEO Scott Reed stated, "Our expectations of realizing a return on our 2023 investments in the back half of 2024 are coming to fruition.  We are extremely pleased with the performance of our Central Carolinas office and our existing franchise, particularly given the dynamic interest rate environment.  We look forward to finishing the year strong as we prepare for continued opportunities for growth in 2025."

At September 30, 2024, Tier 1 Capital was 9.7%, the Total Capital Ratio was 10.7% and the Leverage Ratio was 9.3%.

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 September 30, 2024, Oakworth had $1.7 billion in total assets, $1.4 billion in gross loans, $1.5 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: jenifer.kimbrough@oakworth.com

OAKWORTH CAPITAL INC.
WEALTH AND TRUST (Unaudited)
(In millions)		As of										Change				Change
		9/30/2024		6/30/2024		3/31/2024		12/31/2023		9/30/2023		9/30/2024 vs. 6/30/2024				9/30/2024 vs. 9/30/2023
Wealth assets (non-balance sheet)		$           2,308		$           2,200		$           2,156		$           2,016		$           1,896		$              107		5 %		$              412		22 %
CONSOLIDATED CONDENSED STATEMENTS OF CONDITION (Unaudited)
(in thousands)		As of										Change				Change
		9/30/2024		6/30/2024		3/31/2024		12/31/2023		9/30/2023		9/30/2024 vs. 6/30/2024				9/30/2024 vs. 9/30/2023
Assets
Cash and due from banks		$       117,265		$         71,623		$       126,215		$       158,403		$       116,065		$         45,642		64 %		$           1,200		1 %
Federal funds sold		1,950		75		1,650		3,925		2,225		1,875		2500 %		(275)		-12 %
Securities available for sale		156,926		151,379		147,576		143,947		137,907		5,547		4 %		19,019		14 %
Loans, net of unearned income		1,411,569		1,357,150		1,280,129		1,244,133		1,146,526		54,419		4 %		265,043		23 %
Allowance for credit losses		(16,494)		(15,895)		(15,048)		(14,652)		(13,575)		(599)		4 %		(2,919)		22 %
Loans, net		1,395,075		1,341,255		1,265,081		1,229,481		1,132,951		53,820		4 %		262,124		23 %
Fixed assets		4,647		4,820		4,998		4,681		4,758		(173)		-4 %		(111)		-2 %
Interest receivable		6,478		6,903		6,279		6,284		5,932		(425)		-6 %		546		9 %
Other assets		54,396		56,200		47,856		48,506		50,209		(1,804)		-3 %		4,187		8 %
Total assets		$     1,736,737		$     1,632,255		$     1,599,655		$     1,595,227		$     1,450,047		$       104,482		6 %		$       286,690		20 %
Liabilities and Stockholders' Equity
Liabilities:
Deposits:
Non-interest bearing deposits		$       255,008		$       274,968		$       266,083		$       319,986		$       278,822		$        (19,960)		-7 %		$        (23,814)		-9 %
Interest-bearing deposits		1,268,998		1,124,013		1,166,594		1,105,921		963,044		144,985		13 %		305,954		32 %
Total deposits		1,524,006		1,398,981		1,432,677		1,425,907		1,241,866		125,025		9 %		282,140		23 %
Total Borrowings		64,273		94,250		34,227		34,204		74,180		(29,977)		-32 %		(9,907)		-13 %
Accrued interest payable		643		1,517		703		1,070		455		(874)		-58 %		188		41 %
Other liabilities		22,018		19,474		18,005		23,794		21,840		2,544		13 %		178		1 %
Total liabilities		1,610,940		1,514,222		1,485,612		1,484,975		1,338,341		96,718		6 %		272,599		20 %
Total stockholders' equity		125,797		118,033		114,043		110,252		111,706		7,764		7 %		14,091		13 %
Total liabilities and stockholders' equity		$     1,736,737		$     1,632,255		$     1,599,655		$     1,595,227		$     1,450,047		$       104,482		6 %		$       286,690		20 %

 

OAKWORTH CAPITAL INC.
CONSOLIDATED CONDENSED STATEMENTS OF INCOME (Unaudited)
(in thousands)		Quarter Ended										Change				Change
		9/30/2024		6/30/2024		3/31/2024		12/31/2023		9/30/2023		3Q24 vs. 2Q24				3Q24 vs. 3Q23
Interest income:
Loans, including fees		$         25,423		$         23,505		$         22,056		$         20,322		$         19,204		$           1,918		8 %		$           6,219		32 %
Securities available for sale		1,187		1,101		1,030		977		899		86		8 %		288		32 %
Short term investments		837		982		1,134		1,463		1,608		(145)		-15 %		(771)		-48 %
Total interest income		27,447		25,588		24,220		22,762		21,711		1,859		7 %		5,736		26 %
Interest expense:
Deposits		12,296		11,429		11,189		9,976		9,200		867		8 %		3,096		34 %
Borrowings		1,253		1,044		548		1,219		1,097		209		20 %		156		14 %
Total interest expense		13,549		12,473		11,737		11,195		10,297		1,076		9 %		3,252		32 %
Net interest income		13,898		13,115		12,483		11,567		11,414		783		6 %		2,484		22 %
Provision for credit losses		599		847		396		10,792		431		(248)		-29 %		168		39 %
Net interest income after provision		13,299		12,268		12,087		775		10,983		1,031		8 %		2,316		21 %
for loan losses
Non-interest income		3,943		4,051		4,219		3,753		3,836		(108)		-3 %		107		3 %
Non-interest expense		11,638		11,497		11,320		11,013		10,640		141		1 %		998		9 %
Income before income taxes		5,604		4,822		4,986		(6,485)		4,179		782		16 %		1,425		34 %
Provision for income taxes		1,458		1,204		1,056		(1,752)		1,035		254		21 %		423		41 %
Net Income		4,146		3,618		3,930		(4,733)		3,144		528		15 %		1,002		32 %
Earnings per share - basic		$             0.84		$             0.73		$             0.80		$            (0.97)		$             0.64		$             0.11		15 %		$             0.20		30 %
Earnings per share - diluted		$             0.84		$             0.73		$             0.80		$            (0.97)		$             0.64		$             0.11		15 %		$             0.20		30 %

 

OAKWORTH CAPITAL INC.
CONSOLIDATED CONDENSED STATEMENTS OF INCOME (Unaudited)
(in thousands)		YTD Period Ended
		9/30/2024			9/30/2023		Change
Interest income:
Loans, including fees		$         70,983			$          53,261		$         17,722		33 %
Securities available for sale		3,320			2,533		787		31 %
Short term investments		2,953			3,508		(555)		-16 %
Total interest income		77,256			59,302		17,954		30 %
Interest expense:
Deposits		34,914			22,512		12,402		55 %
Borrowings		2,845			2,807		38		1 %
Total interest expense		37,759			25,319		12,440		49 %
Net interest income		39,497			33,983		5,514		16 %
Provision for credit losses		1,842			1,883		(41)		-2 %
Net interest income after provision		37,655			32,100		5,555		17 %
for loan losses
Non-interest income		12,213			10,526		1,687		16 %
Non-interest expense		34,455			30,237		4,218		14 %
Income before income taxes		15,413			12,389		3,024		24 %
Provision for income taxes		3,719			2,981		738		25 %
Net Income		11,694			9,408		2,286		24 %
Earnings per share - basic		$             2.37			$             1.93		$             0.44		23 %
Earnings per share - diluted		$             2.37			$             1.93		$             0.44		23 %

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SOURCE Oakworth Capital Inc.

FAQ

What was Oakworth Capital's (OAKC) net income for Q3 2024?

Oakworth Capital Inc. (OAKC) reported a net income of $4.1 million for the third quarter of 2024.

How much did Oakworth Capital's (OAKC) diluted earnings per share increase in 2024?

Oakworth Capital's (OAKC) diluted earnings per share increased to $2.37 in the first three quarters of 2024, up from $1.93 in the same period of 2023, representing a 23% increase.

What was the percentage increase in Oakworth Capital's (OAKC) total loans for 2024?

Oakworth Capital (OAKC) reported a 23% increase in total loans year-over-year in 2024.

When did Oakworth Capital's (OAKC) Central Carolinas office achieve profitability?

Oakworth Capital's (OAKC) Central Carolinas office achieved incremental profitability in the third quarter of 2024, 11 months after opening.