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'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 $2.0 billion in wealth and trust assets under management. For more information, visit www.oakworth.com.
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OAKWORTH CAPITAL INC.
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WEALTH AND TRUST (Unaudited)
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(In millions)
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As of
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Change
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Change
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12/31/2023
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9/30/2023
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6/30/2023
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3/31/2023
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12/31/2022
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12/31/2023 vs. 9/30/2023
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12/31/2023 vs. 12/31/2022
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Wealth assets (non-balance sheet)
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$ 2,016
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$ 1,896
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$ 1,987
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$ 1,875
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$ 1,802
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$ 120
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6 %
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$ 214
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12 %
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CONSOLIDATED CONDENSED STATEMENTS OF CONDITION (Unaudited)
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(in thousands)
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As of
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Change
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Change
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12/31/2023
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9/30/2023
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6/30/2023
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3/31/2023
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12/31/2022
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12/31/2023 vs. 9/30/2023
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12/31/2023 vs. 12/31/2022
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Assets
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Cash and due from banks
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$ 158,403
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$ 116,065
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$ 140,421
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$ 69,575
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$ 185,483
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$ 42,338
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36 %
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$ (27,080)
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-15 %
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Federal funds sold
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3,925
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2,225
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3,825
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3,025
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4,475
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1,700
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76 %
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(550)
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-12 %
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Securities available for sale
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143,947
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137,907
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135,433
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136,234
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132,050
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6,040
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4 %
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11,897
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9 %
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Loans, net of unearned income
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1,244,133
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1,146,526
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1,107,028
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1,076,532
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974,398
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97,607
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9 %
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269,735
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28 %
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Allowance for loan losses
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(14,652)
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(13,575)
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(13,144)
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(12,808)
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(11,692)
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(1,077)
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8 %
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(2,960)
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25 %
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Loans, net
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1,229,481
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1,132,951
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1,093,884
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1,063,724
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962,706
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96,530
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9 %
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266,775
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28 %
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Fixed assets
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4,681
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4,758
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4,626
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3,314
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3,129
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(77)
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-2 %
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1,552
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50 %
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Interest receivable
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6,284
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5,932
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4,791
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4,752
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4,263
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352
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6 %
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2,021
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47 %
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Other assets
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48,506
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50,209
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45,999
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44,986
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43,348
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(1,703)
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-3 %
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5,158
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12 %
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Total assets
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$ 1,595,227
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$ 1,450,047
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$ 1,428,979
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$ 1,325,610
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$ 1,335,454
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$ 145,180
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10 %
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$ 259,773
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19 %
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Liabilities and Stockholders' Equity
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Liabilities:
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Deposits:
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Non-interest bearing deposits
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$ 319,986
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$ 278,822
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$ 301,821
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$ 324,649
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$ 315,033
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$ 41,164
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15 %
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$ 4,953
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2 %
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Interest-bearing deposits
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1,105,921
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963,044
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922,391
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802,946
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861,401
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142,877
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15 %
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244,520
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28 %
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Total deposits
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1,425,907
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1,241,866
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1,224,212
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1,127,595
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1,176,434
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184,041
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15 %
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249,473
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21 %
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Total Borrowings
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34,204
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74,180
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74,158
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74,134
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34,112
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(39,976)
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-54 %
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92
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0 %
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Accrued interest payable
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1,070
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455
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982
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425
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840
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615
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135 %
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230
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27 %
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Other liabilities
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23,794
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21,840
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17,960
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14,937
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20,310
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1,954
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9 %
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3,484
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17 %
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Total liabilities
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1,484,975
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1,338,341
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1,317,312
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1,217,091
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1,231,696
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146,634
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11 %
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253,279
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21 %
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Total stockholders' equity
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110,252
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111,706
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111,667
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108,519
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103,758
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(1,454)
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-1 %
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6,494
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6 %
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Total liabilities and stockholders' equity
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$ 1,595,227
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$ 1,450,047
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$ 1,428,979
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$ 1,325,610
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$ 1,335,454
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$ 145,180
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10 %
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$ 259,773
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19 %
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OAKWORTH CAPITAL INC.
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CONSOLIDATED CONDENSED STATEMENTS OF INCOME (Unaudited)
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(in thousands)
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Quarter Ended
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Change
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Change
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12/31/2023
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9/30/2023
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6/30/2023
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3/31/2023
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12/31/2022
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4Q23 vs. 3Q23
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4Q23 vs. 4Q22
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Interest income:
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Loans, including fees
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$ 20,322
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$ 19,204
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$ 18,193
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$ 15,864
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$ 13,643
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$ 1,118
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6 %
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$ 6,679
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49 %
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Securities available for sale
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977
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899
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825
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811
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797
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78
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9 %
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|
180
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23 %
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Short term investments
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1,463
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1,608
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991
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909
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1,161
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(145)
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-9 %
|
|
302
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26 %
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Total interest income
|
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22,762
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21,711
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20,009
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17,584
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15,601
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1,051
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5 %
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7,161
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46 %
|
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Interest expense:
|
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|
|
|
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|
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Deposits
|
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9,976
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9,200
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7,585
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5,729
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3,782
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776
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8 %
|
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6,194
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164 %
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Borrowings
|
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1,219
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1,097
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1,072
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638
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548
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122
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11 %
|
|
671
|
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122 %
|
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Total interest expense
|
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11,195
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|
10,297
|
|
8,657
|
|
6,367
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4,330
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|
898
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9 %
|
|
6,865
|
|
159 %
|
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Net interest income
|
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11,567
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|
11,414
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|
11,352
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11,217
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11,271
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|
153
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1 %
|
|
296
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3 %
|
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Provision for loan losses
|
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10,792
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|
431
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|
335
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|
1,116
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|
452
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|
10,361
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2404 %
|
|
10,340
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2288 %
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|
Net interest income after provision
|
775
|
|
10,983
|
|
11,017
|
|
10,101
|
|
10,819
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(10,208)
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-93 %
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(10,044)
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-93 %
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for loan losses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
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Non-interest income
|
|
3,753
|
|
3,836
|
|
3,392
|
|
3,297
|
|
3,095
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|
(83)
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-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
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|
(10,664)
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-255 %
|
|
(10,881)
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-248 %
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|
Provision for income taxes
|
|
(1,752)
|
|
1,035
|
|
1,011
|
|
934
|
|
1,051
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(2,787)
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-269 %
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(2,803)
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-267 %
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Net Income
|
|
(4,733)
|
|
3,144
|
|
3,247
|
|
3,017
|
|
3,345
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(7,877)
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-251 %
|
|
(8,078)
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-241 %
|
|
Earnings per share - basic
|
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$ (0.97)
|
|
$ 0.64
|
|
$ 0.66
|
|
$ 0.62
|
|
$ 0.69
|
|
$ (1.61)
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-250 %
|
|
$ (1.66)
|
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-240 %
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|
Earnings per share - diluted
|
|
$ (0.97)
|
|
$ 0.64
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|
$ 0.66
|
|
$ 0.62
|
|
$ 0.68
|
|
$ (1.61)
|
|
-250 %
|
|
$ (1.65)
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-242 %
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OAKWORTH CAPITAL INC.
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|
|
|
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|
|
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CONSOLIDATED CONDENSED STATEMENTS OF INCOME (Unaudited)
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(in thousands)
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YTD Period Ended
|
|
|
|
|
12/31/2023
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|
12/31/2022
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Change
|
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|
|
|
|
|
|
|
|
|
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Interest income:
|
|
|
|
|
|
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|
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|
Loans, including fees
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$ 73,584
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|
|
$ 40,682
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$ 32,902
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81 %
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Securities available for sale
|
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3,510
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|
|
2,849
|
|
661
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23 %
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|
Short term investments
|
|
4,971
|
|
|
2,094
|
|
2,877
|
|
137 %
|
|
Total interest income
|
|
82,065
|
|
|
45,625
|
|
36,440
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80 %
|
|
Interest expense:
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
32,490
|
|
|
5,688
|
|
26,802
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|
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: jenifer.kimbrough@oakworth.com
View original content to download multimedia:https://www.prnewswire.com/news-releases/oakworth-capital-inc-reports-fourth-quarter-and-fiscal-year-2023-financial-results-302042685.html
SOURCE Oakworth Capital Inc.
