Oakworth Capital Inc. Reports Strong Profitability Growth in Fiscal Year 2024
PR Newswire
BIRMINGHAM, Ala., Jan. 24, 2025
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.
