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

Rhea-AI Summary

Oakworth Capital reported strong financial growth for fiscal year 2022, with net income increasing to $11.5 million and total revenue rising to $51.8 million. Key drivers included a 47% rise in core earnings and a 34% increase in core revenue, largely attributed to a 27% boost in net interest income. The company's earnings per share was $2.36, up from $1.62 in the previous year. Oakworth maintained exceptional credit quality with $0 charge-offs and a strong capital position, including a Tier 1 Capital ratio of 10.8%. Wealth assets stood at $1.8 billion, despite a 10% decrease compared to 2021.

Positive

• 47% increase in core earnings.
• 34% rise in core revenue.
• Net interest income growth of 27%.
• Earnings per share increased to $2.36 from $1.62.
• Exceptional credit quality with $0 charge-offs.
• Strong capital position: Tier 1 Capital at 10.8%.

Negative

• Wealth assets decreased by 10% from $1.993 billion to $1.802 billion.
• Cash and due from banks decreased by 43%.

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: jenifer.kimbrough@oakworth.com

View original content to download multimedia:https://www.prnewswire.com/news-releases/oakworth-capital-inc-reports-45-increase-in-core-diluted-eps-in-2022-301744213.html

SOURCE Oakworth Capital Inc.

FAQ

What were Oakworth Capital's revenue figures for 2022?

Oakworth Capital reported total revenue of $51.8 million for the fiscal year 2022.

How much did Oakworth Capital's net income increase in 2022?

Oakworth Capital's net income increased to $11.5 million in 2022.

What is Oakworth Capital's earnings per share for 2022?

Oakworth Capital's earnings per share for 2022 were $2.36 on an adjusted, diluted basis.

How did Oakworth Capital's wealth assets change in 2022?

Wealth assets for Oakworth Capital decreased by 10% to $1.8 billion compared to 2021.

What growth did Oakworth Capital experience in net interest income?

Oakworth Capital reported a 27% increase in net interest income in 2022.