BIRMINGHAM, Ala., July 25, 2024 -- 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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