Oakworth Capital Inc. Reports Impressive Profitability Growth
Oakworth Capital Inc. (OTCQX: OAKC) has recently shared its financial performance, showcasing remarkable profitability growth in the fiscal year 2024. The company's net income reached approximately $15.8 million, a significant jump from $4.7 million reported in 2023. This translates to a 38.5% increase compared to the company's core net income of $11.4 million from the previous year. This improvement reflects a strong financial position and effective management strategies.
Earnings Per Share and Revenue Growth
In addition to net income, Oakworth Capital's diluted earnings per share (EPS) surged to $3.19, up from $0.96 in 2023. When looking at core EPS, the figure was $2.33 in 2024. The company reported pre-tax, pre-provision income at $23.6 million, which represents a 27% increase year-over-year. Notably, revenue also climbed, with the company experiencing an 18% growth year-over-year, resulting in total revenues of around $71 million for the year.
Strategic Investments Driving Growth
The growth was fueled by strategic investments, especially through the opening of the new Central Carolinas office. Such initiatives have created positive operational leverage that has effectively boosted overall revenue without a proportionate increase in expenses, which grew by 14% during the same period.
Strong Asset Growth and Loan Performance
Oakworth Capital has also reported a 14% increase in wealth assets, bringing the total to $2.3 billion. The bank's total assets rose by 12%, hitting $1.8 billion. Furthermore, period-end loans increased by 17%, amounting to $1.5 billion, while average loans grew by an impressive 21%. This growth pattern indicates a strong demand for loan products and effective lending strategies.
Improving Deposits and Customer Retention
The company's deposits also demonstrated a healthy increase, with period-end deposits rising by 12% to reach $1.6 billion and average deposits climbing by 20% in the same year. The Chairman and CEO, Scott Reed, expressed optimism about the company’s trajectory, stating, "Our growth and profitable performance in 2024 set the stage for an exciting 2025. We look forward to expanding on our success by continuing to deliver exceptional levels of service and innovative solutions to new and existing clients across our markets." This sentiment is backed up by the company's high client retention rates and strong net promoter score.
Maintaining Credit Quality Amid Growth
The credit quality remains robust, with net charge-offs recorded at only 0.03%. The company reported minimal non-performing loans totaling $325,000, alongside zero past-due loans, demonstrating effective risk management and quality control in lending practices.
Capital Ratios and Future Outlook
As of December 31, 2024, Oakworth's Tier 1 Capital stood at 10.5%, while their Total Capital Ratio was at 11.6%. The Leverage Ratio rounded out at 9.5%. These healthy ratios highlight the bank's stability and ability to weather any potential economic turbulence while simultaneously supporting growth initiatives.
About Oakworth Capital Inc.
Oakworth Capital, Inc. serves as the bank holding company for Oakworth Capital Bank. Established in 2008, Oakworth operates multiple offices throughout the Southeast region. The company's focus encompasses commercial and private banking alongside wealth management and advisory services, catering to clients nationwide. Furthermore, Oakworth has been recognized as one of American Banker's "Best Banks to Work for" among other accolades, highlighting its commitment to both employee satisfaction and customer service.
Frequently Asked Questions
What was Oakworth Capital Inc.'s net income for 2024?
Oakworth Capital reported a net income of approximately $15.8 million.
How much did the company's earnings per share increase?
The diluted earnings per share increased to $3.19 from $0.96 in 2023.
What factors contributed to Oakworth's revenue growth?
Strategic investments, especially in the new Central Carolinas office, contributed to the revenue growth of 18% year-over-year.
What is the status of Oakworth's credit quality?
Oakworth maintained a strong credit quality, reporting net charge-offs of only 0.03% and minimal non-performing loans.
What are the company's total assets as of December 31, 2024?
As of December 31, 2024, Oakworth Capital reported total assets amounting to $1.8 billion.
