Oakworth Capital Reports Strong Earnings Performance
Oakworth Capital Inc. has recently announced a notable 22% increase in diluted earnings per share (EPS) for the first nine months of the year. The financial institution, known as Oakworth, reports that its performance has seen substantial improvements compared to the previous year, showcasing remarkable growth in various financial metrics.
Income and Profitability Highlights
This year's financial results depict a thriving business environment for Oakworth Capital. The company reported a net income of $14.5 million, reflecting a 24% increase from last year’s $11.7 million. The diluted earnings per share rose to $2.90, up from $2.37 in the same period last year, marking a significant milestone for the organization.
In terms of overall revenue, Oakworth achieved $60.6 million, which is a remarkable 17% higher than the $51.7 million recorded in the same period of 2024. Additionally, it has reported a pre-tax pre-provision income of $22.1 million, which is up 28% from $17.3 million year-over-year.
Growth in Net Interest Income
Net interest income exhibited steady progress with a 4% linked-quarter growth and an impressive year-over-year rise of 21%. This growth has contributed to the bank's increasing profitability and sustainability in a competitive marketplace. Meanwhile, trust and wealth fees have seen a linked-quarter increase of 7% and an 11% jump year-over-year, showcasing the bank's expanding wealth management services.
Asset Growth and Balance Sheet Strength
Oakworth's wealth assets have also experienced significant growth, now standing at $2.6 billion—11% higher than the previous year's $2.3 billion. On the lending side, the company enjoyed a year-over-year loan growth averaging 13%, with a period-end growth rate of 9%, bringing total loans to $1.5 billion, underscoring the bank's robust loan portfolio.
In addition, deposits saw an average increase of 14% and a period-end growth of 11%, totaling $1.7 billion. The tangible book value per share is recorded at $29.27, giving shareholders an attractive valuation of their investment.
Commitment to Safety and Soundness
Oakworth Capital takes great pride in maintaining high credit quality metrics, with non-performing loans amounting to just $0.5 million and no loans past due by more than 90 days. The bank's total risk-based capital ratio stands at 12.2%, with Common Equity Tier 1 (CET1) capital at 11.0% and a Tier 1 leverage ratio of 9.8%, showcasing a solid capital position.
CEO's Optimistic Outlook
Scott Reed, Chairman and CEO of Oakworth, expressed satisfaction with the company's balanced growth and profitability. He stated, "We've achieved double-digit compound annual growth rates in loans, deposits, wealth assets, and earnings per share for the life of our company. I'm incredibly optimistic about Oakworth's future and the value we're creating for our shareholders and the communities we serve." This sentiment reflects the bank's confidence and strategic direction moving forward.
About Oakworth Capital Inc.
Oakworth Capital, Inc. operates as the bank holding company for Oakworth Capital Bank. Founded in 2008, Oakworth has expanded its footprint across four offices in the Southeast, including its headquarters in Birmingham. The bank provides a variety of services including commercial and private banking, along with wealth management and advisory services to clients throughout the United States.
Ranked among American Banker's "Best Banks to Work For" for eight consecutive years—with six years at the top—Oakworth continues to prioritize customer satisfaction. With a commendable Net Promoter Score of 94 and a client retention rate of 95%, Oakworth has solidified its reputation for excellence in service delivery.
As of recent reports, Oakworth proudly manages total assets of $1.9 billion, gross loans of $1.5 billion, deposits totaling $1.7 billion, and wealth and trust assets amounting to $2.6 billion.
Frequently Asked Questions
What did Oakworth Capital Inc. report about its earnings?
Oakworth Capital Inc. reported a 22% increase in diluted earnings per share for the first nine months, reaching $2.90.
How much net income did Oakworth Capital achieve?
Oakworth Capital's net income was reported at $14.5 million, up 24% from $11.7 million from the previous year.
What are Oakworth's total assets as of September 2025?
The company has reported total assets of $1.9 billion as of September 30, 2025.
How has Oakworth's loan portfolio grown recently?
Oakworth experienced a 13% year-over-year growth in loans, totaling $1.5 billion by the end of the reporting period.
What is the future outlook for Oakworth Capital?
CEO Scott Reed expressed strong optimism regarding the bank's growth trajectory and continued value creation for shareholders and clients alike.
