Oakworth Capital Inc. Reports Strong EPS Growth in 2025
Oakworth Capital Inc. Reports Strong EPS Growth
Oakworth Capital Inc. (OTCQX: OAKC) has recently announced an impressive 24% increase in diluted earnings per share (EPS) for the first half of 2025 compared to the same period in 2024. As of mid-year, the company has shown robust performance across several key areas, demonstrating its solid position in the financial market.
Income and Profitability Metrics
Highlights of Financial Performance
This growth in EPS is attributed to a net income of $9.4 million, which marked a 25% increase from the previous year's net income of $7.5 million. The diluted earnings per share stood at $1.89, compared to $1.53 in the same period of 2024, showing a strong upward trajectory in profitability.
Pre-Tax Income Growth
Further emphasizing its financial strength, Oakworth reported pre-tax pre-provision income of $14.5 million, which reflects a 31% increase over the $11.1 million obtained in the first half of 2024. This indicates effective cost management and operational efficiency, contributing to its overall bottom line growth.
Revenue and Income Streams
Revenue Surge
For the year-to-date period ending June 30, 2025, Oakworth recorded total revenue of $39.8 million, which is an 18% improvement compared to $33.9 million last year. This revenue growth can largely be attributed to a solid performance in net interest income.
Net Interest Income Insights
The bank observed a 2% linked-quarter growth and a staggering 23% year-over-year growth in this revenue segment, showcasing its effective interest rate strategies. Although trust and wealth administration fees saw a slight decline of 4% linked-quarter, they still posted a 10% increase compared to last year.
Analyzing Expenses and Shareholder Returns
Cost Management
Non-interest expenses increased to $25.3 million, reflecting an elevation of 11% year-over-year. Despite these increases, Oakworth's return on average equity (ROAE) stands at a commendable 14.5%, while return on average assets (ROAA) is at 1.0%, indicating strong returns for shareholders.
Wealth Management Growth
Regarding its wealth management and balance sheet performance, Oakworth Capital's wealth assets have grown to $2.4 billion, which is 10% higher than the previous year's assets standing at $2.2 billion. Additionally, Oakworth's average loan growth over the year stood at 15% leading to a total of $1.5 billion in loans.
Chairman and CEO Commentary
Scott Reed, Oakworth's Chairman and CEO, stated, "We continue to experience positive momentum as a result of our significant investments in our workforce, processes, and technology across new and existing markets. We eagerly anticipate serving our clients and accelerating our revenues through the remaining months of the year."
Company Overview
Founded in 2008, Oakworth Capital Inc. operates as the financial holding company for Oakworth Capital Bank. The company proudly serves clients nationwide with its robust array of commercial and private banking, wealth management, and advisory services. As of mid-2025, Oakworth has experienced favorable rankings among numerous industry assessments, further solidifying its reputation as one of the top employers in the banking sector. The bank has not only been recognized multiple times by American Banker's "Best Banks to Work for" but also boasts a high client satisfaction, as indicated by an average Net Promoter Score (NPS) of 94, paired with a strong client retention rate of 95%.
Frequently Asked Questions
1. What contributed to the increase in EPS for Oakworth Capital?
The 24% increase in EPS was primarily driven by a rise in net income to $9.4 million, thanks to effective management and a growth in revenue.
2. How did Oakworth perform in terms of total revenue?
Oakworth reported total revenue of $39.8 million for the year-to-date, an 18% increase compared to the previous year.
3. What is Oakworth's stance on cost management?
While non-interest expenses increased, the bank continues to maintain competitive returns on equity and assets, indicating solid cost management practices.
4. What services does Oakworth Capital provide?
Oakworth offers a wide range of services, including commercial and private banking, wealth management, and advisory services across the United States.
5. Who leads Oakworth Capital?
Scott Reed serves as the Chairman and CEO, focusing on enhancing client service and driving future growth.
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