Oakworth Capital Inc. Reports 19% Growth in Net Income

Oakworth Capital posts double-digit profit, loan, and deposit growth with robust credit quality.

What the company is saying

Oakworth Capital Inc. is highlighting strong financial and operational momentum for the year-to-date period ended September 30, 2026. The company emphasizes 19% net income growth to $17.2 million and 13% diluted EPS growth to $3.27, both compared to the same period in 2025. Management, led by Chairman and CEO Scott Reed, frames the narrative around profitable, balanced growth, underpinned by a 57% third quarter efficiency ratio and a 1.2% return on assets. The announcement spotlights a $15.4 million common equity capital raise, completed at $42.00 per share, as evidence of market support and balance sheet strength. Oakworth also stresses double-digit year-over-year increases in wealth assets (up 17% to $3.00 billion), loans (up 16% to $1.8 billion), and deposits (up 17% to $2.0 billion). The company draws attention to its robust credit quality, citing $9.7 million in non-performing loans, a 0.73% NPA ratio, and a 1.2% allowance for credit losses. The tone is confident and data-driven, with forward-looking remarks limited to a commitment to deliver value for shareholders.

What the data suggests

The disclosed figures show Oakworth Capital delivering broad-based financial growth and maintaining strong asset quality. Net income rose 19% year-over-year to $17.2 million, while diluted EPS increased 13% to $3.27. Revenue climbed 17% to $70.7 million, and pre-tax pre-provision income was up 28% to $28.3 million. Wealth assets reached $3.00 billion, a 17% increase, with loans and deposits also posting 16% and 17% year-over-year growth, respectively. The efficiency ratio of 57% and ROAA of 1.2% indicate solid profitability and operational discipline. Credit quality remains robust, with non-performing loans at $9.7 million, ORE at $3.4 million, and net charge-offs totaling $3.1 million year-to-date. Capital ratios are strong, with total risk-based capital at 12.3%, CET1 at 11.1%, and Tier 1 leverage at 9.8%. The $15.4 million equity raise, completed in the quarter, further strengthens the balance sheet. Non-interest expenses grew 10% to $42.5 million, but this was outpaced by revenue and income growth. The data supports management’s claims of profitable, balanced growth and provides a comprehensive, transparent view of the company’s financial health.

Analysis

The announcement is highly factual and supported by detailed, realised financial and operational data for the year-to-date and third quarter of 2026. Nearly all key claims—net income, EPS, revenue, loan and deposit growth, capital ratios, and credit quality—are substantiated with precise numerical disclosures. The only forward-looking language is a generic statement about delivering value to shareholders, which is not paired with any exaggerated or aspirational projections. The $15.4 million equity capital raise is already completed and disclosed as a realised event, not a future plan. There is no evidence of narrative inflation or overstatement; the tone is positive but proportionate to the strong, measurable results. All major profitability and sustainability metrics are disclosed, allowing investors to assess both growth and quality of earnings.

Risk flags

• ●Loan and deposit growth of 16–17% year-over-year, while positive, could pressure underwriting standards or asset quality if sustained in a less favorable credit environment. The current NPA ratio of 0.73% and allowance for credit losses at 1.2% of loans are healthy, but rapid growth warrants ongoing scrutiny.
• ●Non-interest expenses increased 10% year-over-year to $42.5 million. While this was outpaced by revenue growth, continued cost escalation could erode operating leverage if not managed alongside income expansion.
• ●The $15.4 million equity capital raise, while strengthening the balance sheet, dilutes existing shareholders and signals a need for additional capital to support growth. The use of proceeds is not detailed, leaving some uncertainty about future capital requirements or deployment.
• ●Interest rate movements have resulted in a $15.8 million AOCI mark-to-market adjustment, highlighting exposure to rate volatility. Further rate changes could impact book value and capital ratios.
• ●Sustaining high client retention (95%) and Net Promoter Score (95) will be critical as the company scales, especially given competitive pressures in commercial and private banking.

Bottom line

Oakworth Capital Inc. delivers a strong set of realised results, with 19% net income growth, 13% EPS growth, and double-digit expansion in loans, deposits, and wealth assets. The $15.4 million equity raise is complete and immediately reflected in the balance sheet, supporting further growth. Credit quality and capital ratios are robust, and operational efficiency remains high. While cost growth and rapid balance sheet expansion present ongoing risks, the company’s disclosures are comprehensive and support management’s narrative of profitable, balanced growth. Investors should watch for continued credit quality, cost discipline, and clarity on capital deployment in future quarters. The most important takeaway is that Oakworth is executing on growth without sacrificing asset quality or capital strength.

Announcement summary

(OTCQX:OAKC) Oakworth Capital Inc. reported 19% net income growth and 13% diluted EPS growth for the year-to-date period ended September 30, 2026 compared to the same period in 2025. The company achieved a 57% third quarter efficiency ratio and a 1.2% third quarter return on assets. Wealth assets grew 17% year-over-year to $3.00 billion, loans increased 16% to $1.8 billion, and deposits rose 17% to $2.0 billion compared to 2025. Linked quarter deposit growth was 13% (52% annualized). Oakworth completed a $15.4 million common equity capital raise in the quarter, selling 367,330 shares at $42.00 per share in a private placement that closed on September 25, 2026. Net income for the year-to-date period was $17.2 million, up from $14.5 million in 2025. Diluted earnings per share were $3.27 compared to $2.90 in the prior year. Pre-tax pre-provision income reached $28.3 million, a 28% increase from $22.1 million in 2025. Revenue was $70.7 million, 17% higher than $60.6 million year-to-date 2025. Net interest income grew 16% year-over-year, and trust and wealth fees increased 22%. Non-interest expenses were $42.5 million, up from $38.5 million in 2025, a 10% increase. Return on average equity (ROAE) was 14.4%, and return on average assets (ROAA) was 1.1%. Tangible book value per share was $32.34, including a $15.8 million or $2.96 per share AOCI mark-to-market adjustment due to interest rate movements. Credit quality metrics included $9.7 million in non-performing loans, $3.4 million in ORE, a 0.73% NPA ratio, and $3.1 million in net charge-offs (with $1.3 million in 3Q26). The allowance for credit losses was 1.2% of loans, net. Total risk-based capital was 12.3%, CET1 was 11.1%, and Tier 1 leverage was 9.8%. As of September 30, 2026, Oakworth had $2.2 billion in total assets, $1.8 billion in gross loans, $2.0 billion in deposits, and $3.0 billion in wealth and trust assets under management. Cash and due from banks stood at $154,630,000, and securities available for sale were $234,034,000. Non-interest bearing deposits were $373,868,000, and interest-bearing deposits were $1,611,617,000. Total borrowings were $38,345,000. Total stockholders' equity was $172,587,000. For the third quarter, interest income from loans was $28,439,000, and total interest income was $31,937,000. Net interest income for the quarter was $19,623,000. Provision for credit losses in the quarter was $2,161,000. Non-interest income for the quarter was $5,375,000, and non-interest expense was $14,269,000. Income before income taxes for the quarter was $8,568,000, and net income was $6,476,000. Basic earnings per share for the quarter were $1.23, and diluted earnings per share were $1.19. For the year-to-date period, interest income from loans was $80,523,000, total interest income was $90,505,000, and net interest income was $55,516,000. Provision for credit losses year-to-date was $5,482,000. Non-interest income year-to-date was $15,207,000, and non-interest expense was $42,472,000. Income before income taxes year-to-date was $22,769,000, and net income was $17,211,000. Basic earnings per share year-to-date were $3.34, and diluted earnings per share were $3.27. Oakworth's 2025 average Net Promoter Score (NPS) was 95, with a client retention rate of 95%. Oakworth Capital Inc. operates as the bank holding company for Oakworth Capital Bank and provides commercial and private banking, wealth management, and advisory services to clients across the United States. Scott Reed is Chairman and CEO of Oakworth Capital Inc.

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