Accessibility StatementSkip Navigation BIRMINGHAM, Ala., Nov. 19, 2025 /PRNewswire/ -- The Board of Directors of Oakworth Capital Inc. (OTCQX: OAKC) met Wednesday, Nov.19, 2025, and declared an annual dividend of $0.45 per common share, payable Jan. 15, 2026, to shareholders of record as of Dec. 15, 2025. About Oakworth Capital Inc. and Oakworth Capital BankOakworth Capital, Inc. operates as the bank holding company for Oakworth Capital Bank (Oakworth) (OTCQX: OAKC). Oakworth was founded in 2008 and operate ...

Core Insights - Oakworth Capital Bank has been recognized as the 2 "Best Bank to Work For" in the U.S. for 2025 by American Banker, marking the ninth consecutive year of recognition in this program [1][2]. Company Culture and Engagement - The consistent recognition reflects the strength of Oakworth's culture and the engagement of its associates, who value collaboration towards common goals [2][3]. - Oakworth achieved a Net Promoter Score of 94 in 2024, significantly above industry averages, indicating high trust and satisfaction among clients and associates [3]. Leadership Perspectives - Scott Reed, chairman and CEO, emphasized that the recognition affirms the culture built by associates, highlighting the integration of purpose and professionalism [3][4]. - COO Sam Scalici noted that the culture is rooted in genuine care and shared respect, contributing to the bank's success [4]. Financial Overview - As of September 30, 2025, Oakworth Capital Bank reported total assets of $1.9 billion, gross loans of $1.5 billion, deposits of $1.7 billion, and wealth and trust assets under management of $2.6 billion [6].

Core Insights - Oakworth Capital Inc. reported a 22% increase in diluted earnings per share for the first nine months of 2025 compared to the same period in 2024, reflecting strong profitability and growth [1][4][6] Income/Profitability - Net income reached $14.5 million, a 24% increase from $11.7 million year-over-year [4][6] - Diluted earnings per share were $2.90, up 22% from $2.37 in the same period of 2024 [4][6] - Pre-tax pre-provision income was $22.1 million, representing a 28% increase from $17.3 million year-over-year [4] - Revenue totaled $60.6 million, a 17% increase from $51.7 million in the same period of 2024 [4] Wealth Assets/Balance Sheet - Wealth assets reached $2.6 billion, an 11% increase from $2.3 billion one year prior [4][8] - Total assets as of September 30, 2025, were $1.9 billion, with gross loans of $1.5 billion and deposits of $1.7 billion [8] - Year-over-year loan growth was 13% on an average basis and 9% on a period-end basis [4] - Year-over-year deposit growth was 14% on an average basis and 11% on a period-end basis [4] Safety and Soundness - The company reported a return on average equity (ROAE) of 14.5% and a return on average assets (ROAA) of 1.1% [4] - Credit quality metrics included $0.5 million in non-performing loans and a 1.2% allowance for credit losses as a percentage of loans [4] - Capital ratios were reported as total risk-based capital at 12.2%, Common Equity Tier 1 (CET1) at 11.0%, and Tier 1 leverage at 9.8% [4]

Financial Data and Key Metrics Changes - The company reported adjusted earnings per diluted share of $0.72, representing an adjusted return on assets of 1.41% [4] - Net interest income increased by 4.6% over the prior quarter, while fee income rose by 15% [11] - The net interest margin improved by 10 basis points to 3.51% [12] - Adjusted pre-provision net revenue grew by 23.2% over the prior quarter [27] Business Line Data and Key Metrics Changes - The retirement services business generated stable revenue of over $16 million, with assets under administration and management increasing by 6.3% [17][18] - The wealth management business saw revenues increase by 6.6% on a linked quarter basis, with assets under management rising by 2.5% [18] - Noninterest income from banking was $8.4 million for the second quarter, with a $2.1 million gain related to the sale of hospitality loans [16] Market Data and Key Metrics Changes - Deposits shrank by 3.3% due to expected seasonal outflows from public funds [15] - The company expects continued seasonal volatility in deposits, with average deposit account sizes growing over 20% since 2019 [15] Company Strategy and Development Direction - The company is focused on maximizing profitability through disciplined pricing and enhancing its diversified business model [4][5] - Strategic initiatives include optimizing the balance sheet and investing in talent and technology to deepen client relationships [8][9] - The company aims to achieve consistent performance levels and is targeting mid-single-digit loan growth for 2025 [22] Management's Comments on Operating Environment and Future Outlook - Management acknowledged macroeconomic uncertainty and competitive pressures but emphasized a disciplined approach to growth and credit risk management [87] - The guidance for the year remains consistent, with expectations for low single-digit deposit growth and continued focus on core business lines [22][26] Other Important Information - The company recorded no provision for the quarter due to a net gain from the sale of hospitality loans [6] - The adjusted efficiency ratio improved to 52.4% from 66.9% in the prior quarter [19] - The company remains well-capitalized with a common equity Tier one capital ratio of 10.5% [21] Q&A Session Summary Question: What are the expectations for third and fourth quarter accretion? - The company expects 27 basis points of purchase accounting accretion in the third quarter and 22 basis points in the fourth quarter, with no early payoffs included [29][34] Question: What is the status of the larger construction credit? - The final certificate of occupancy was issued, and the property is currently at 57% leased, with expectations for a sale in early 2026 [37][65] Question: How does the company view the capital deployment for the rest of the year? - The company prioritizes organic balance sheet growth, maintaining dividend history, and pursuing M&A opportunities in the retirement sector [45] Question: What is the outlook for noninterest income? - The company expects noninterest income to be up low single digits for the year, factoring in seasonal downturns in the mortgage business [25][80] Question: How is the company addressing nonperforming assets? - Nonperforming assets are primarily driven by two large relationships, with resolutions expected in early 2026 [65][66] Question: What is the outlook for deposit costs? - The company anticipates an increase of 8 to 10 basis points in deposit costs due to competition and a shift from non-interest bearing to interest-bearing deposits [73][76]

Financial Data and Key Metrics Changes - The company reported an adjusted earnings per diluted share of $0.72, representing an adjusted return on assets of 1.41% [3] - Net interest income increased by 4.6% over the prior quarter, while fee income rose by 15% [10] - The net interest margin improved by 10 basis points to 3.51% [11] Business Line Data and Key Metrics Changes - The retirement services business generated stable revenue of over $16 million, with assets under administration and management increasing by 6.3% [16] - The wealth management business saw revenues increase by 6.6% on a linked quarter basis, with assets under management rising by 2.5% [17] - Noninterest income from banking was $8.4 million for the second quarter, including a $2.1 million gain from the sale of hospitality loans [15] Market Data and Key Metrics Changes - Deposits shrank by 3.3% due to expected seasonal outflows from public funds [14] - The company maintained a net retention rate of approximately 97% since the acquisition of Home Federal [15] Company Strategy and Development Direction - The company is focused on maximizing capacity and enhancing profitability in its commercial wealth bank [4] - Strategic initiatives include optimizing the balance sheet and pursuing meaningful partnerships [6] - The company aims to double the number of wealth advisers and grow assets under management at the same pace as banking assets [6] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about the business, citing strong momentum and robust opportunities in the lending pipeline [4] - The guidance for the year remains consistent, with expectations for mid-single-digit loan growth and low-single-digit deposit growth [22] - Management acknowledges macroeconomic uncertainty and competitive pressures but emphasizes a disciplined approach to growth and risk management [73] Other Important Information - The company recorded no provision for the quarter due to a strategic sale of $60 million in non-owner occupied commercial real estate hospitality loans, resulting in a net gain of $2 million [5] - The adjusted efficiency ratio improved to 52.4% from 66.9% in the prior quarter, driven by core expense and revenue improvements [19] Q&A Session Summary Question: What are the expectations for third and fourth quarter accretion? - The company expects 27 basis points of purchase accounting accretion in the third quarter and 22 basis points in the fourth quarter, with no early payoffs included [28][29] Question: What is the status of the larger construction credit? - The final certificate of occupancy was issued, and the property was listed for sale, currently at 57% occupancy [31] Question: How does the company view capital deployment and M&A opportunities? - The company prioritizes organic balance sheet growth, maintaining dividend history, and pursuing M&A in the retirement sector [39] Question: What is the outlook for fee income and participant counts in the retirement business? - The company experienced a decline in participant counts due to one-time effects but expects numbers to rise in the future [42] Question: What is the outlook for loan growth and demand? - Loan growth is primarily from leveraging the current client base and taking market share rather than new credits [46] Question: How does the company plan to address nonperforming loans? - Nonperforming loans are driven by two large relationships, with resolutions expected in early 2026 [57]

Core Insights - Oakworth Capital Inc. reported a 24% increase in diluted earnings per share for the first half of 2025 compared to the same period in 2024, with net income reaching $9.4 million, a 25% year-over-year increase [1][7][9] Income/Profitability - Revenue for the first half of 2025 was $39.8 million, an 18% increase from $33.9 million in the same period of 2024 [7] - Pre-tax pre-provision income was $14.5 million, up 31% from $11.1 million year-over-year [7] - Non-interest expenses increased by 11% year-over-year to $25.3 million [7] - Return on average equity (ROAE) was 14.5% and return on average assets (ROAA) was 1.0% [7] Wealth Assets/Balance Sheet - As of June 30, 2025, total assets were $1.8 billion, a 2% increase from $1.7 billion a year prior [5][9] - Wealth assets under management reached $2.4 billion, a 10% increase from $2.2 billion year-over-year [7][9] - Total loans amounted to $1.5 billion, reflecting a 15% year-over-year growth on an average basis [7][9] - Total deposits were $1.6 billion, a 16% increase on an average basis year-over-year [7][9] Safety and Soundness - Credit quality metrics showed $0.5 million in non-performing loans and no loans past due by 90 days or more [7] - The allowance for credit losses was 1.2% of net loans [7] - Capital ratios included total risk-based capital at 12.1%, Common Equity Tier 1 (CET1) at 10.9%, and Tier 1 leverage at 9.7% [7]