Oakworth Capital Inc. Sees 22% Growth in Diluted EPS
In recent reports, Oakworth Capital Inc. (OTCQX: OAKC) announced a striking 22% increase in diluted earnings per share (EPS) during the first nine months of a recent fiscal year compared to the same period last year. This positive indicator reflects the company's robust financial health and operational success as they continue to expand their services.
Financial Performance Highlights
As of September 30, notable achievements for Oakworth include:
Income and Profitability
- Net income reached $14.5 million, representing a 24% uptick from $11.7 million year-over-year.
- Diluted earnings per share stood at $2.90, a considerable increase from $2.37 during the same timeline last year.
- Pre-tax pre-provision income climbed to $22.1 million, up 28% from the previous year's $17.3 million.
- Revenue soared to $60.6 million, marking a 17% rise from $51.7 million year-over-year.
- The company experienced a 4% linked-quarter growth in net interest income, alongside a year-over-year growth of 21% in the sector.
- Trust and wealth fees increased by 7% linked-quarter and 11% year-over-year.
- Non-interest expenses totaled $38.5 million, reflecting a 12% rise from the previous year.
- Return on average equity (ROAE) was calculated at 14.5%, while return on average assets (ROAA) was at 1.1%.
Wealth Management and Asset Performance
Oakworth’s wealth management services also showed promising growth. Wealth assets totaled $2.6 billion, marking an 11% increase from $2.3 billion the year prior, reflecting strong demand for wealth management solutions.
Balance Sheet Strength
The bank reported solid growth in loans and deposits:
- Loans experienced an impressive average growth of 13% on an annual basis, bringing total loans to $1.5 billion.
- Deposits increased by 14% on average, reaching $1.7 billion.
Robust Credit Quality
In terms of safety and soundness, Oakworth maintains strong credit quality metrics:
- Non-performing loans stood at a minor $0.5 million.
- No loans were reported as past due beyond 90 days.
- There is a 1.2% allowance for credit losses relative to net loans.
Leadership Insights
Scott Reed, Chairman and CEO of Oakworth, shared his enthusiasm regarding the company’s solid progress: "We are thrilled by our balanced growth and substantial profitability. Maintaining double-digit compound annual growth rates across loans, deposits, and wealth assets over our company's lifetime is a testament to our focused approach. I am extremely optimistic about Oakworth’s future and the value we continue to create for all our stakeholders."
About Oakworth Capital Inc.
Founded in 2008, Oakworth Capital Inc. operates as a bank holding company for Oakworth Capital Bank. With its headquarters situated in Alabama and four offices across the Southeast, the company prides itself on providing comprehensive banking, wealth management, and advisory services throughout the U.S. Oakworth’s dedication to customer satisfaction is prominent, as evidenced by them being recognized among American Banker’s "Best Banks to Work For" multiple times.
The firm has demonstrated consistent growth with total assets amounting to $1.9 billion as of the latest fiscal assessment along with significant loan and deposit growth.
Frequently Asked Questions
1. What company is being discussed in the report?
The report focuses on Oakworth Capital Inc. (OTCQX: OAKC), a prominent financial institution providing banking and wealth management services.
2. What was the increase in diluted earnings per share reported?
The company reported a 22% increase in diluted earnings per share, totaling $2.90.
3. How much did Oakworth's revenue grow?
Oakworth's revenue grew by 17%, reaching $60.6 million compared to the previous year.
4. What is the total amount of wealth assets managed by Oakworth?
The total wealth assets managed by Oakworth amount to $2.6 billion.
5. Can you provide information about the bank's leadership?
Scott Reed serves as the Chairman and CEO, expressing optimism about the bank's growth, profitability, and the overall value provided to stakeholders.
