Oakworth Capital Inc. Reports 35% Increase in Diluted EPS

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May 01, 2023, 11:18 ET

Consistent Growth and Safety and Soundness Noted

BIRMINGHAM, Ala., May 1, 2023 /PRNewswire/ -- OakworthCapital Inc. (OTCQX: OAKC) reported 35% higher diluted earnings per share and 34% higher earnings in first quarter 2023 than the same period of 2022. Pre-tax, pre-provision income increased 53%, taking into account 40% year-over-year loan growth.

Oakworth's Chairman and CEO Scott Reed shared, "It has been an eventful quarter for our industry. Oakworth's status as one of the safest institutions in the country has been top of mind for our clients. Our focus on a strong, well-capitalized balance sheet continues to provide confidence to our clients and has enabled us to execute on our growth objectives."

Financial highlights first quarter 2023 vs. first quarter 2022 are as follows:

Net income of $3.0 million, up 34% from $2.3 million
Total revenue of $14.5 million, up 32% from $11.0 million
Diluted earnings per share of $0.62, up 35% from $0.47
Net interest income up 44% year-over-year
Net interest margin of 3.64% compared to 2.70% one year ago and 3.68% in fourth quarter 2022

Reflects higher deposit costs, higher loan yields and a loan book growing faster than the deposit book

Wealth assets of $1.9 billion, down 5% from $2.0 billion

Wealth fees down 3% to $2.6 million
Reflects market value changes offset by new accounts and additions to existing accounts

Total assets of $1.3 billion, up 7% from $1.2 billion

$1.1 billion in loans, up 40% from $771 million
$1.1 billion in deposits in both periods

Continued pristine credit quality with $0 charge-offs, $0 non-performing assets and $0 90-day past due loans in both periods
Strong capital with Tier 1 Capital ratio of 10.2%, Total Capital Ratio of 11.3% and Leverage Ratio of 9.8% at March 31, 2023

Reed continued, "Our deposit book is diversified and entirely relationship-based and was not significantly impacted by first quarter industry events. We remain pleased with how our balanced business model performs across market environments."

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 (April 2022 to April 2023) and a client retention rate of 95% in 2022. As of March 31, 2023, Oakworth had $1.3 billion in total assets, $1.1 billion in gross loans, $1.1 billion in deposits and $1.9 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: [email protected]

OAKWORTH CAPITAL INC.

WEALTH AND TRUST (Unaudited)
(in millions)	As of					Change		Change
	3/31/2023	12/31/2022	9/30/2022	6/30/2022	3/31/2022	3/31/2023 vs. 12/31/2022		3/31/2023 vs. 3/31/2022

Wealth assets (non-balance sheet)	$ 1,875	$ 1,802	$ 1,738	$ 1,783	$ 1,980	$ (105)	-5.3 %	$ 1,980	-5 %

CONSOLIDATED CONDENSED STATEMENTS OF CONDITION (Unaudited)
(in thousands)	As of					Change		Change
	3/31/2023	12/31/2022	9/30/2022	6/30/2022	3/31/2022	3/31/2023 vs. 12/31/2022		3/31/2023 vs. 3/31/2022
Assets
Cash and due from banks	$ 69,575	$ 185,483	$ 115,950	$ 114,252	$ 291,492	$ (115,908)	-62 %	$ (221,917)	-76 %
Federal funds sold	3,025	4,475	2,650	5,300	4,075	(1,450)	-32 %	(1,050)	-26 %
Securities available for sale	136,234	132,050	130,722	130,093	135,971	4,184	3 %	263	0 %
Loans, net of unearned income	1,076,532	974,398	934,003	854,432	770,798	102,134	10 %	305,734	40 %
Allowance for loan losses	(12,808)	(11,692)	(11,240)	(10,612)	(9,681)	(1,116)	10 %	(3,127)	32 %
Loans, net	1,063,724	962,706	922,763	843,820	761,117	101,018	10 %	302,607	40 %
Fixed assets	3,314	3,129	3,136	3,242	3,370	185	6 %	(56)	-2 %
Interest receivable	4,752	4,263	2,957	2,605	2,418	489	11 %	2,334	97 %
Other assets	44,986	43,348	42,228	40,931	39,713	1,638	4 %	5,273	13 %
Total assets	$ 1,325,610	$ 1,335,454	$ 1,220,406	$ 1,140,243	$ 1,238,156	$ (9,844)	-1 %	$ 87,454	7 %

Liabilities and Stockholders' Equity
Liabilities:
Deposits:
Non-interest bearing deposits	$ 324,649	$ 315,033	$ 319,828	$ 329,684	$ 325,262	$ 9,616	3 %	$ (613)	0 %
Interest-bearing deposits	802,946	861,401	751,026	695,837	796,865	(58,455)	-7 %	6,081	1 %
Total deposits	1,127,595	1,176,434	1,070,854	1,025,521	1,122,127	(48,839)	-4 %	5,468	0 %
Total Borrowings	74,134	34,112	34,105	-	-	40,022	117 %	74,134	NA
Accrued interest payable	425	840	294	27	40	(415)	-49 %	385	963 %
Other liabilities	14,937	20,310	15,160	14,124	14,695	(5,373)	-26 %	242	2 %
Total liabilities	1,217,091	1,231,696	1,120,413	1,039,672	1,136,862	(14,605)	-1 %	80,229	7 %
Total stockholders' equity	108,519	103,758	99,993	100,571	101,294	4,761	5 %	7,225	7 %
Total liabilities and stockholders' equity	$ 1,325,610	$ 1,335,454	$ 1,220,406	$ 1,140,243	$ 1,238,156	$ (9,844)	-1 %	$ 87,454	7 %

OAKWORTH CAPITAL INC.

CONSOLIDATED CONDENSED STATEMENTS OF INCOME (Unaudited)
(in thousands)	Quarter Ended					Change		Change
	3/31/2023	12/31/2022	9/30/2022	6/30/2022	3/31/2022	3/31/2023 vs. 12/31/2022		3/31/2023 vs. 3/31/2022

Interest income:
Loans, including fees	$ 15,864	$ 13,643	$ 11,065	$ 8,605	$ 7,368	$ 2,221	16 %	$ 8,496	115 %
Securities available for sale	811	797	774	696	583	14	2 %	228	39 %
Short term investments	909	1,161	496	314	123	(252)	-22 %	786	639 %
Total interest income	17,584	15,601	12,335	9,615	8,074	1,983	13 %	9,510	118 %
Interest expense:
Deposits	5,729	3,782	1,286	343	276	1,947	51 %	5,453	1976 %
Borrowings	638	548	258	-	-	90	16 %	638	NA
Total interest expense	6,367	4,330	1,544	343	276	2,037	47 %	6,091	2207 %
Net interest income	11,217	11,271	10,791	9,272	7,798	(54)	0 %	3,419	44 %
Provision for loan losses	1,116	452	628	931	366	664	147 %	750	NA
Net interest income after provision	10,101	10,819	10,163	8,341	7,432	(718)	-7 %	2,669	36 %
for loan losses
Non-interest income	3,297	3,095	3,136	3,159	3,231	202	7 %	66	2 %
Non-interest expense	9,447	9,518	9,098	7,948	7,726	(71)	-1 %	1,721	22 %
Income before income taxes	3,951	4,396	4,201	3,552	2,937	(445)	-10 %	1,014	35 %
Provision for income taxes	934	1,051	1,008	846	682	(117)	-11 %	252	37 %
Net Income	3,017	3,345	3,193	2,706	2,255	(328)	-10 %	762	34 %
Earnings per share - basic	$ 0.62	$ 0.69	$ 0.66	$ 0.56	$ 0.47	$ (0.07)	-10 %	$ 0.15	32 %
Earnings per share - diluted	$ 0.62	$ 0.68	$ 0.65	$ 0.55	$ 0.46	$ (0.06)	-9 %	$ 0.16	35 %