Oakworth Capital Inc. Reports Fourth Quarter and Fiscal Year 2023 Financial Results

In This Article:

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 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]

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SOURCE Oakworth Capital Inc.