Q2 Shareholder Update – 2024

Letter to Shareholders

Dear Oakworth Shareholders,

We are pleased to report double digit growth in profitability, balance sheet assets and wealth assets for the first half of 2024. Our continued focus on a balanced model of growth and realizing operational efficiencies is resulting in increasing profitability.

As we have discussed in previous updates, we opened our Central Carolinas office in Charlotte, North Carolina in October 2023. Our team in the Central Carolinas is off to a great start! At June 30, the office boasts over $80 million in loans and over $30 million in deposits. Additionally, we have market-based wealth advisors coming online, so we anticipate wealth assets to build as these advisors share our approach with the market. The entire team is respected in the marketplace and embodies Oakworth’s values and approach. We are also announcing exciting additions to our market board who will bring sage industry and market advice and will continue to solidify our name in the market.

Oakworth is also focused on evolving our technology capabilities. Specifically, we are investing in talent and technology that advances our ability to organize and manage data to provide meaningful insights to both associates and clients. This will drive our ability to better manage the overall business and add value to client relationships. To that end, we recently announced two important roles related to our technology leadership. Dave Driscoll, one of our founders and leaders, now holds the responsibility of Chief Information Security Officer. He is focused on the safety and security of our systems. T.J. Rock is one of our newest additions and will serve as our Chief Information Officer. He is responsible for establishing and advancing our technology platforms in alignment with our business objectives. These moves together enhance our risk management around technology and our ability to be innovative in making use of data and technology to better serve our clients and manage our business. We are excited to have T.J. on board and we look forward to bringing innovative and secure solutions to our clients and associates in the future.

A quick look at our financial performance confirms that our strategic investments are beginning to bear fruit. We reported 23% loan growth, 14% deposit growth and 11% wealth asset growth year-over-year which compares favorably to our industry peers based on the latest earnings reports. On June 30, Oakworth reported $1.6 billion in assets. As you know, growth must be profitable to enhance shareholder value. We reported a year-over-year 19% increase in diluted earnings per share to $1.53, and a year-to-date return on average assets of 1.0% and return on average equity of 13.3%. Importantly, our balance sheet continues to be well-capitalized with strong liquidity and $0 of non-performing assets or net charge-offs.

Our strategic investments in the Central Carolinas market and in technology talent position Oakworth to scale the business moving forward. We continue to focus on our goal of becoming an iconic brand in financial services. As we enter the latter half of 2024, our company is well-positioned to capitalize on these investments and to realize continued growth in profitability.

As always, we thank you for your support and continue to focus on increasing the value of your franchise and your investment through profitable growth.

Sincerely,
Scott Reed

Chairman and CEO

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