Financial Highlights
Diluted EPS increased 27%*
Net income up 28%*
Top-line revenue increased 18%*
$2.3 Billion in Wealth Assets
6% increase*
$1.8 Billion Total Assets
17% growth in total loans to $1.5 billion*
(17% on average)
14% growth in total deposits to $1.6 billion*
(17% on average)
Book value per share of $26.69 compared to $23.35 at 3/31/2024
Well-Capitalized
10.6% Tier 1 Capital Ratio**
9.5% Tier 1 Leverage Ratio**
11.7% Total Capital Ratio**
*Year-over-year 3.31.25 vs. 3.31.24
**As of 3.31.25
For additional detail on Oakworth Capital Bank’s annual and quarterly financial performance, read our latest Earnings Report.
Letter to Shareholders
Dear Oakworth Capital Bank Shareholders,
The conclusion of the first quarter of 2025 marks the 17th anniversary of Oakworth Capital Bank. In March 2008, we started as a values-based organization with a vision of Redefining Financial Services. By many objective measures, we are building significant momentum towards this lofty objective. We are now firmly established in four markets across three states and deliver a distinctive level of service as evidenced by our consistently remarkable NPS© scores, averaging above 95 in all markets. This is a foundation for future growth, for which we are extremely excited! Our earnings per share (EPS) has compounded at 13% per year since turning profitable in 2010. More importantly, our EPS has accelerated in recent years with our most recent quarterly diluted EPS being 27% higher compared to one year ago!
In the first quarter of 2025, we continued to focus on profitability and balanced growth. This balanced growth positions Oakworth for revenue growth in future quarters. Our revenue growth paired with our focus on investing wisely positions us for continued improving returns in the future. The result of our focus was a return on average equity of 15.9% and a return on average assets of 1.1% with 17% year-over-year average loan and average deposit growth as well as 6% growth in wealth assets to $2.3 billion. This improvement in performance is evidence that our team knows how to generate a return on strategic investments. On three separate occasions, Oakworth has expanded into a new market. With each investment, we saw earnings growth temporarily slow during the investment period to be followed by improvements in growth and profitability once established in the market. The record is clear!
Beyond strategic investments in new markets, we also continue to invest in our existing business for greater levels of service and efficiency. Our latest investment is the future launch of Oakworth Asset Management. Oakworth Asset Management is a new Registered Investment Advisor entity that will enable our investment team and client advisors to offer a wider selection of products and to hold various professional licenses. While this investment may appear subtle to our clients, it will significantly enhance our investment management and advisory services offerings and strengthen our ability to attract top talent. Pending regulatory approvals, we anticipate a second quarter launch.
Finally, we continue to tell our story to a broader audience. Our leadership team is spending more time networking with both the institutional investment and investment banking communities. We are also sharing our story more broadly with family offices and high net worth families to raise awareness of our distinctive and compelling story. Our intent is to create greater awareness about Oakworth, and that, in turn, should have a positive impact on our trade values. There is currently a clear investment opportunity that exists in our stock given the mis-match in prevailing industry EPS multiples and our high-quality, consistent performance.
We invite you to share our story by referring those whom you believe would appreciate and benefit from our unique approach. We hope you all plan to attend our annual shareholders meeting May 21st at 4:00 pm in our Central Alabama office where we will share much more about our year in 2024 and our plans for 2025 and beyond. Please look for your proxy statement in the mail/email for specific instructions on how to access the meeting online via Zoom or in person. We would also appreciate your vote! Electronic voting takes less than a minute and we want to hear from you.
Many of you have been with us as clients and shareholders since the beginning and others have joined us along the way and, for that, we are grateful. Together, we have expanded to serve clients, enable associates and better our communities, and we still have many exciting opportunities ahead!
As always, thank you for your business, and thank you for your support.
Sincerely,
Scott Reed
Chairman and CEO
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