15:27:27 EDT Thu 16 Jul 2026
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Oakworth Capital Inc. Reports 14% Growth in Net Income

2026-07-16 11:00 ET - News Release

Oakworth Capital Inc. Reports 14% Growth in Net Income

PR Newswire

BIRMINGHAM, Ala., July 16, 2026 /PRNewswire/ -- Oakworth Capital Inc. (OTCQX: OAKC) reported 14% net income growth and 10% diluted EPS growth in the year-to-date period ended June 30, 2026 compared to the same period in 2025. Growth in profitability is attributable to top line revenue growth in the banking and wealth management space paired with expense control. Year-over-year loan growth of 15%, deposit growth of 12% and wealth asset growth of 22% demonstrated strength in the core business. Oakworth's Chairman and CEO Scott Reed stated, "We are focused on profitable execution across all four of our markets. Second quarter performance indicates our team's ability to deliver results. I look forward to continuing to improve upon our goals of balanced growth and improving profitability."

As of and year-to-date June 30, 2026 highlights include:

Income/Profitability:

  • Net income of $10.7 million compared to $9.4 million in first half 2025
  • Diluted earnings per share of $2.07 compared to $1.89 in first half 2025
  • Pre-tax pre-provision income of $17.5 million compared to $14.5 million in first half 2025 (+21%)
  • Revenue of $45.7 million: 15% higher than $39.8 million in first half 2025
    • 14% year-over-year growth in net interest income
    • 22% year-over-year growth in trust and wealth fees
  • Non-interest expenses of $28.2 million compared to $25.3 million in first half 2025
    • 12% higher year-over-year
    • Includes $872 thousand ($660 thousand, net of tax) strategic write-down of other real estate in 1Q26
  • ROAE of 14.0%
  • ROAA of 1.1%

Wealth Assets/Balance Sheet:

  • Wealth assets of $2.96 billion, 22% higher than $2.42 billion one year prior
  • Year-over-year loan growth of 12% on average basis and 15% on period end basis to $1.7 billion
  • Year-over-year deposit growth of 11% on average basis and 12% on period end basis to $1.8 billion
  • Tangible book value per share: $32.35

Safety and Soundness:

  • Credit quality metrics:
    • $11.6 million non-performing loans
      • Includes C&I credit moved to non-accrual in 1Q26
      • $1.25 million impairment recognized in second quarter
      • $829 thousand past due +90 loans
    • $2.5 million ORE
    • 1.2% allowance for credit losses as percentage of loans, net
  • Capital ratios
    • Total risk-based capital: 11.9%
    • CET1: 10.7%
    • Tier 1 leverage: 9.6%

About Oakworth Capital Inc. and Oakworth Capital Bank
Oakworth Capital, Inc. operates as the bank holding company for Oakworth Capital Bank (OTCQX: OAKC). Oakworth was founded in 2008 and operates four offices in the Southeast, including its headquarters in Birmingham, Alabama. Oakworth provides commercial and private banking, wealth management, and advisory services to clients across the United States.

Oakworth has been ranked among American Banker's "Best Banks to Work For in the U.S." for the past nine years, holding the top spot for six of those years and ranking No. 2 most recently. Additionally, Oakworth's 2025 average Net Promoter Score (NPS) was 95 with a commensurate client retention rate of 95%. As of June 30, 2026, Oakworth had $2.1 billion in total assets, $1.7 billion in gross loans, $1.8 billion in deposits and $3.0 billion in wealth and trust assets under management. For more information, visit www.oakworth.com.

Advisory services, including investment management and financial planning, are offered through Oakworth Asset Management LLC, a registered investment advisor that is owned by Oakworth Capital Bank, Member FDIC, Equal Housing Lender. Investment products and services offered via Oakworth Asset Management LLC are independent of the products and services offered by Oakworth Capital Bank, and are not FDIC insured, may lose value, have no bank guarantee, and are not insured by any federal or state government agency. Because Oakworth Asset Management LLC is owned by Oakworth Capital Bank and because associates of either entity may provide financial advice to our clients, there exists a conflict of interest to the extent that either party recommends the services of the other. Oakworth Asset Management LLC does not provide tax or legal advice. You should consult your tax advisor, accountant, and/or attorney before making any decisions with tax or legal implications. Additional information about Oakworth Asset Management LLC, including its services and fees, may be obtained from adviserinfo.sec.gov or by contacting Oakworth Asset Management directly.

                                                                                             
 OAKWORTH CAPITAL INC.




             WEALTH AND TRUST 
          
            (Unaudited)



 
          (In millions)                                                                                             
 
 As of                                        Change                      Change


                                                                                   6/30/2026                3/31/2026           12/31/2025   9/30/2025    6/30/2025                   6/30/2026 vs.                     6/30/2026 vs.
                                                                                                                                                                                       3/31/2026                      6/30/2025





 Wealth assets (non-balance sheet)                                                   $2,957                    $2,705                $2,685       $2,566        $2,415          $252          9 %            $542        22 %





 
          CONSOLIDATED CONDENSED STATEMENTS OF CONDITION 
       
 (Unaudited)



 
          (in thousands)                                                                                            
 
 As of                                        Change                      Change


                                                                                   6/30/2026                3/31/2026           12/31/2025   9/30/2025    6/30/2025                   6/30/2026 vs.                     6/30/2026 vs.
                                                                                                                                                                                       3/31/2026                      6/30/2025


                                     
        Assets



 Cash and due from banks                                                           $128,029                  $113,891              $194,946     $153,084      $124,351       $14,138         12 %          $3,678         3 %



 Federal funds sold                                                                   1,050                     1,951                 1,325          950         1,900         (901)       -46 %           (850)      -45 %



 Securities available for sale                                                      226,098                   213,286               201,684      189,673       175,535        12,812          6 %          50,563        29 %



 Loans, net of unearned income                                                    1,725,998                 1,665,422             1,604,023    1,533,734     1,496,222        60,576          4 %         229,776        15 %



 Allowance for credit losses                                                       (20,754)                 (19,871)             (19,348)    (18,734)     (17,944)        (883)         4 %         (2,810)       16 %



   Loans, net                                                                     1,705,244                 1,645,551             1,584,675    1,515,000     1,478,278        59,693          4 %         226,966        15 %



 Fixed assets                                                                         3,326                     3,447                 3,625        3,821         3,980         (121)        -4 %           (654)      -16 %



 Interest receivable                                                                  7,516                     7,560                 7,246        6,845         6,611          (44)        -1 %             905        14 %



 Other assets                                                                        59,859                    54,169                52,723       52,825        58,967         5,690         11 %             892         2 %



   Total assets                                                                  $2,131,122                $2,039,855            $2,046,224   $1,922,198    $1,849,622       $91,267          4 %        $281,500        15 %




                      
        Liabilities and Stockholders' Equity



 Liabilities:



   Deposits:



     Non-interest bearing deposits                                                 $319,544                  $320,493              $304,683     $300,340      $273,119        $(949)         0 %         $46,425        17 %



     Interest-bearing deposits                                                    1,438,204                 1,467,134             1,526,302    1,397,942     1,299,175      (28,930)        -2 %         139,029        11 %



      Total deposits                                                              1,757,748                 1,787,627             1,830,985    1,698,282     1,572,294      (29,879)        -2 %         185,454        12 %



 Total Borrowings                                                                   188,322                    78,299                38,831       58,809       118,786       110,023        141 %          69,536        59 %



 Accrued interest payable                                                             1,299                       598                 1,223          710         1,452           701        117 %           (153)      -11 %



 Other liabilities                                                                   20,464                    20,950                26,521       20,657        21,333         (486)        -2 %           (869)       -4 %



   Total liabilities                                                              1,967,833                 1,887,474             1,897,560    1,778,458     1,713,865        80,359          4 %         253,968        15 %



   Total stockholders' equity                                                       163,289                   152,381               148,664      143,740       135,757        10,908          7 %          27,532        20 %



   Total liabilities and stockholders' equity                                    $2,131,122                $2,039,855            $2,046,224   $1,922,198    $1,849,622       $91,267          4 %        $281,500        15 %

                                                                                    
 OAKWORTH CAPITAL INC.





 
            CONSOLIDATED CONDENSED STATEMENTS OF INCOME
 
 (Unaudited)



 
            (in thousands)                                                                              
  
 Quarter Ended                                    Change                    Change


                                                                          6/30/2026                3/31/2026             12/31/2025   9/30/2025    6/30/2025               2Q26 vs. 1Q26                  2Q26 vs. 2Q25





 Interest income:



    Loans, including fees                                                  $26,711                   $25,373                 $25,817      $26,194       $25,306    $1,338      5 %        $1,405     6 %



    Securities available for sale                                            2,219                     2,015                   1,814        1,667         1,605       204     10 %           614    38 %



    Short term investments                                                   1,049                     1,201                   1,772        1,058         1,043     (152)   -13 %             6     1 %



       Total interest income                                                29,979                    28,589                  29,403       28,919        27,954     1,390      5 %         2,025     7 %



 Interest expense:



    Deposits                                                                 9,931                    10,375                  11,289       11,357        11,049     (444)    -4 %       (1,118)  -10 %



    Borrowings                                                               1,605                       763                     678        1,114         1,022       842    110 %           583    57 %



       Total interest expense                                               11,536                    11,138                  11,967       12,471        12,071       398      4 %         (535)   -4 %



       Net interest income                                                  18,443                    17,451                  17,436       16,448        15,883       992      6 %         2,560    16 %



 Provision for credit losses                                                 2,007                     1,315                   1,010          905         1,236       692     53 %           771    62 %



       Net interest income after provision                                  16,436                    16,136                  16,426       15,543        14,647       300      2 %         1,789    12 %



       for loan losses



 Non-interest income                                                         4,994                     4,837                   4,647        4,392         4,131       157      3 %           863    21 %



 Non-interest expense                                                       13,664                    14,538                  14,634       13,223        12,964     (874)    -6 %           700     5 %



    Income before income taxes                                               7,766                     6,435                   6,439        6,712         5,814     1,331     21 %         1,952    34 %



 Provision for income taxes                                                  1,901                     1,565                   1,145        1,653         1,434       336     21 %           467    33 %



       Net Income                                                            5,865                     4,870                   5,294        5,059         4,380       995     20 %         1,485    34 %



 Earnings per share - basic                                                  $1.15                     $0.96                   $1.05        $1.01         $0.88     $0.19     20 %         $0.27    31 %



 Earnings per share - diluted                                                $1.13                     $0.94                   $1.04        $1.01         $0.88     $0.19     20 %         $0.25    28 %

                                                              
 OAKWORTH CAPITAL INC.





 
            CONSOLIDATED CONDENSED STATEMENTS OF INCOME
 
    (Unaudited)



 
            (in thousands)                                                                   YTD Period Ended


                                                                                      6/30/2026                  6/30/2025           Change





 Interest income:



    Loans, including fees                                                              $52,083                     $50,108  $1,975   4 %



    Securities available for sale                                                        4,234                       3,080   1,154  37 %



    Short term investments                                                               2,251                       2,212      39   2 %



       Total interest income                                                            58,568                      55,400   3,168   6 %



 Interest expense:



    Deposits                                                                            20,306                      22,317 (2,011) -9 %



    Borrowings                                                                           2,369                       1,659     710  43 %



       Total interest expense                                                           22,675                      23,976 (1,301) -5 %



       Net interest income                                                              35,893                      31,424   4,469  14 %



 Provision for credit losses                                                             3,321                       2,011   1,310  65 %



       Net interest income after provision                                              32,572                      29,413   3,159  11 %



       for loan losses



 Non-interest income                                                                     9,831                       8,376   1,455  17 %



 Non-interest expense                                                                   28,202                      25,289   2,913  12 %



    Income before income taxes                                                          14,201                      12,500   1,701  14 %



 Provision for income taxes                                                              3,466                       3,089     377  12 %



       Net Income                                                                       10,735                       9,411   1,324  14 %



 Earnings per share - basic                                                              $2.11                       $1.89   $0.22  12 %



 Earnings per share - diluted                                                            $2.07                       $1.89   $0.18  10 %

For more information contact:
Jenifer Kimbrough
Phone: 205-263-4704
Email: jenifer.kimbrough@oakworth.com

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SOURCE Oakworth Capital Inc.

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