BIRMINGHAM, Ala., Jan. 24, 2024 /PRNewswire/ -- Oakworth Capital Inc. (OTCQX: OAKC) reported strong balance sheet growth in fiscal year 2023 including 30% average loan growth (28% year end 2023 vs. year end 2022) and 12% average deposit growth (21% fiscal year end 2023 vs. 2022). Earnings, which were impacted by $7.4 million, net of tax, of provisioning related to a single credit, were $4.7 million or $0.96 per share, diluted.
Oakworth Capital Bank Logo (PRNewsfoto/Oakworth Capital Bank)
Oakworth's Chairman and CEO Scott Reed stated, "2023 was a year of investing in growth. We invested in all of our markets, including the opening of our Central Carolinas office, and in our infrastructure. We look forward to realizing the return on those investments in 2024 and beyond." Mr. Reed continued, "We did realize our first credit loss of significance in our 15-year history. Even though credit losses are a normal part of a bank's business, we are accustomed to pristine credit quality and take much pride in our track record. Excluding the impact of this charge-off, our profitable growth continues according to our plan."
The aforementioned credit, which was charged off late in the quarter, represented the larger of two credits in the same relationship that were moved to non-accrual status early in the fourth quarter and reported in our most recent earnings release. The smaller, $5 million, second credit is well-secured and remains Oakworth's single non-performing asset.
Wealth assets increased 12% year-over-year and 6% linked-quarter to $2.0 billion. Annual loan growth of 28% and linked-quarter loan growth of 9% represents all lending categories and deposit growth of 21% year-over-year and 15% linked-quarter is all client-related, core business.
Profitability in the quarter and year was impacted by both the re-provisioning of the charge-off noted above and approximately $1.2 million directly related to our entry into the Central Carolinas market. Oakworth expects to realize a return on this investment starting in 2024, as has been the history of significant investments in the business.
At December 31, 2023, Tier 1 Capital was 9.7%, the Total Capital Ratio was 10.7% and the Leverage Ratio was 9.3%.
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 Dec. 31, 2023, Oakworth had $1.6 billion in total assets, $1.2 billion in gross loans, $1.4 billion in deposits and $2.0 billion in wealth and trust assets under management. For more information, visit www.oakworth.com.
OAKWORTH CAPITAL INC.
WEALTH AND TRUST (Unaudited)
(In millions)
As of
Change
Change
12/31/2023
9/30/2023
6/30/2023
3/31/2023
12/31/2022
12/31/2023 vs. 9/30/2023
12/31/2023 vs. 12/31/2022
Wealth assets (non-balance sheet)
$ 2,016
$ 1,896
$ 1,987
$ 1,875
$ 1,802
$ 120
6 %
$ 214
12 %
CONSOLIDATED CONDENSED STATEMENTS OF CONDITION (Unaudited)
(in thousands)
As of
Change
Change
12/31/2023
9/30/2023
6/30/2023
3/31/2023
12/31/2022
12/31/2023 vs. 9/30/2023
12/31/2023 vs. 12/31/2022
Assets
Cash and due from banks
$ 158,403
$ 116,065
$ 140,421
$ 69,575
$ 185,483
$ 42,338
36 %
$ (27,080)
-15 %
Federal funds sold
3,925
2,225
3,825
3,025
4,475
1,700
76 %
(550)
-12 %
Securities available for sale
143,947
137,907
135,433
136,234
132,050
6,040
4 %
11,897
9 %
Loans, net of unearned income
1,244,133
1,146,526
1,107,028
1,076,532
974,398
97,607
9 %
269,735
28 %
Allowance for loan losses
(14,652)
(13,575)
(13,144)
(12,808)
(11,692)
(1,077)
8 %
(2,960)
25 %
Loans, net
1,229,481
1,132,951
1,093,884
1,063,724
962,706
96,530
9 %
266,775
28 %
Fixed assets
4,681
4,758
4,626
3,314
3,129
(77)
-2 %
1,552
50 %
Interest receivable
6,284
5,932
4,791
4,752
4,263
352
6 %
2,021
47 %
Other assets
48,506
50,209
45,999
44,986
43,348
(1,703)
-3 %
5,158
12 %
Total assets
$ 1,595,227
$ 1,450,047
$ 1,428,979
$ 1,325,610
$ 1,335,454
$ 145,180
10 %
$ 259,773
19 %
Liabilities and Stockholders' Equity
Liabilities:
Deposits:
Non-interest bearing deposits
$ 319,986
$ 278,822
$ 301,821
$ 324,649
$ 315,033
$ 41,164
15 %
$ 4,953
2 %
Interest-bearing deposits
1,105,921
963,044
922,391
802,946
861,401
142,877
15 %
244,520
28 %
Total deposits
1,425,907
1,241,866
1,224,212
1,127,595
1,176,434
184,041
15 %
249,473
21 %
Total Borrowings
34,204
74,180
74,158
74,134
34,112
(39,976)
-54 %
92
0 %
Accrued interest payable
1,070
455
982
425
840
615
135 %
230
27 %
Other liabilities
23,794
21,840
17,960
14,937
20,310
1,954
9 %
3,484
17 %
Total liabilities
1,484,975
1,338,341
1,317,312
1,217,091
1,231,696
146,634
11 %
253,279
21 %
Total stockholders' equity
110,252
111,706
111,667
108,519
103,758
(1,454)
-1 %
6,494
6 %
Total liabilities and stockholders' equity
$ 1,595,227
$ 1,450,047
$ 1,428,979
$ 1,325,610
$ 1,335,454
$ 145,180
10 %
$ 259,773
19 %
OAKWORTH CAPITAL INC.
CONSOLIDATED CONDENSED STATEMENTS OF INCOME (Unaudited)
(in thousands)
Quarter Ended
Change
Change
12/31/2023
9/30/2023
6/30/2023
3/31/2023
12/31/2022
4Q23 vs. 3Q23
4Q23 vs. 4Q22
Interest income:
Loans, including fees
$ 20,322
$ 19,204
$ 18,193
$ 15,864
$ 13,643
$ 1,118
6 %
$ 6,679
49 %
Securities available for sale
977
899
825
811
797
78
9 %
180
23 %
Short term investments
1,463
1,608
991
909
1,161
(145)
-9 %
302
26 %
Total interest income
22,762
21,711
20,009
17,584
15,601
1,051
5 %
7,161
46 %
Interest expense:
Deposits
9,976
9,200
7,585
5,729
3,782
776
8 %
6,194
164 %
Borrowings
1,219
1,097
1,072
638
548
122
11 %
671
122 %
Total interest expense
11,195
10,297
8,657
6,367
4,330
898
9 %
6,865
159 %
Net interest income
11,567
11,414
11,352
11,217
11,271
153
1 %
296
3 %
Provision for loan losses
10,792
431
335
1,116
452
10,361
2404 %
10,340
2288 %
Net interest income after provision
775
10,983
11,017
10,101
10,819
(10,208)
-93 %
(10,044)
-93 %
for loan losses
Non-interest income
3,753
3,836
3,392
3,297
3,095
(83)
-2 %
658
21 %
Non-interest expense
11,013
10,640
10,151
9,447
9,518
373
4 %
1,495
16 %
Income before income taxes
(6,485)
4,179
4,258
3,951
4,396
(10,664)
-255 %
(10,881)
-248 %
Provision for income taxes
(1,752)
1,035
1,011
934
1,051
(2,787)
-269 %
(2,803)
-267 %
Net Income
(4,733)
3,144
3,247
3,017
3,345
(7,877)
-251 %
(8,078)
-241 %
Earnings per share - basic
$ (0.97)
$ 0.64
$ 0.66
$ 0.62
$ 0.69
$ (1.61)
-250 %
$ (1.66)
-240 %
Earnings per share - diluted
$ (0.97)
$ 0.64
$ 0.66
$ 0.62
$ 0.68
$ (1.61)
-250 %
$ (1.65)
-242 %
OAKWORTH CAPITAL INC.
CONSOLIDATED CONDENSED STATEMENTS OF INCOME (Unaudited)
(in thousands)
YTD Period Ended
12/31/2023
12/31/2022
Change
Interest income:
Loans, including fees
$ 73,584
$ 40,682
$ 32,902
81 %
Securities available for sale
3,510
2,849
661
23 %
Short term investments
4,971
2,094
2,877
137 %
Total interest income
82,065
45,625
36,440
80 %
Interest expense:
Deposits
32,490
5,688
26,802
471 %
Borrowings
4,025
806
3,219
399 %
Total interest expense
36,515
6,494
30,021
462 %
Net interest income
45,550
39,131
6,419
16 %
Provision for loan losses
12,675
2,376
10,299
433 %
Net interest income after provision
32,875
36,755
(3,880)
-11 %
for loan losses
Non-interest income
14,278
12,638
1,640
13 %
Non-interest expense
41,250
34,306
6,944
20 %
Income before income taxes
5,903
15,087
(9,184)
-61 %
Provision for income taxes
1,228
3,588
(2,360)
-66 %
Net Income
4,675
11,499
(6,824)
-59 %
Earnings per share - basic
$ 0.96
$ 2.38
$ (1.43)
-60 %
Earnings per share - diluted
$ 0.96
$ 2.34
$ (1.38)
-59 %
For more information contact: Jenifer Kimbrough Phone: 205-263-4704 Email: [email protected]
