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

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Oakworth Capital Inc. (OAKC) reported significant financial growth in 2024, with net income reaching $15.8 million, up 38.5% from 2023's core net income of $11.4 million. The company achieved diluted earnings per share of $3.19, compared to $0.96 in 2023. Revenue increased 18% year-over-year to $71 million, while expense growth was contained at 14%.

The company demonstrated strong growth across key metrics: wealth assets increased 14% to $2.3 billion, total bank assets rose 12% to $1.8 billion, period-end loans grew 17% to $1.5 billion, and period-end deposits increased 12% to $1.6 billion. Credit quality remained robust with minimal net charge-offs of 0.03% and non-performing loans of just $325K.

The company maintained healthy capital ratios with Tier 1 Capital at 10.5%, Total Capital Ratio at 11.6%, and Leverage Ratio at 9.5%.

Positive

• Net income increased 38.5% to $15.8 million in 2024
• Revenue grew 18% year-over-year to $71 million
• Wealth assets increased 14% to $2.3 billion
• Period-end loans grew 17% to $1.5 billion
• Strong credit quality with minimal net charge-offs (0.03%)
• Positive operating leverage with revenue growth exceeding expense growth

Negative

• Expense growth of 14% year-over-year

News Market Reaction

+1.49%

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+1.49% News Effect

On the day this news was published, OAKC gained 1.49%, reflecting a mild positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

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: jenifer.kimbrough@oakworth.com

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 %

 

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SOURCE Oakworth Capital Inc.

FAQ

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

Oakworth Capital reported net income of $15.8 million in 2024, representing a 38.5% increase from 2023's core net income of $11.4 million.

How much did OAKC's revenue grow in 2024?

Oakworth Capital's revenue increased 18% year-over-year to $71 million in 2024.

What was OAKC's loan growth in 2024?

Period-end loans grew 17% to $1.5 billion, while average loans grew 21% in 2024 compared to 2023.

What are Oakworth Capital's (OAKC) capital ratios as of December 31, 2024?

As of December 31, 2024, Oakworth's Tier 1 Capital was 10.5%, Total Capital Ratio was 11.6%, and Leverage Ratio was 9.5%.

How did OAKC's wealth assets perform in 2024?

Oakworth Capital reported a 14% increase in wealth assets to $2.3 billion in 2024.