Oakworth Capital
written by: Michelle Amaral and Meg Houston | photos by: Eric Holsomback
Currently in its second year of operation, Oakworth Capital Bank is a financial services firm located in Birmingham that serves business owners and professionals along with their families; a key feature of this firm is that a client’s individual as well as business banking needs are met within the same institute. According to Samuel Upchurch Jr., Oakworth’s Board Chairman, the concept for this type of bank was borne out of several Regions Bank employees who were studying strategic alternatives for common business models.
“[We] identified some business models that were really unique and would be appreciated by both the client base and seasoned bankers,” he said. “Over the first six months, we had a core group working on the idea that we could serve the business owner and the professional in a better manner than they were accustomed at a larger institute.”
Oakworth’s target market, the business owner and the professional, was defined after careful evaluation of demographic groups whose needs were not being met at the larger-sized banks. From physicians and lawyers to business owners with entrepreneurial pursuits or established companies, Oakworth remains narrowly focused on this client base, establishing deep relationships and delivering service above and beyond what they have previously received.
But in order to meet these lofty goals, experts within the areas of commercial banking, private banking, and trust and wealth management services were a necessity. Upchurch, who firmly believes that the key to any good organization is people, identified and then sought out the best in the business.
“[The group] averages 20 years of experience working in large, commercial banks such as First Commercial, Regions, Compass, and Wachovia, so we know what we’re doing,” Upchurch said. “Our group brings together bankers with diverse backgrounds who have experience in various areas of banking.”
The result is an efficient money management team that spends time with every individual client, listening to their needs and understanding their personal as well as business goals. Each client is provided with an advisor and an advisor team; regular meetings are held to discuss the client and their needs. Moreover, the complete life cycle of the business owner and their family is taken into consideration.
“When thinking about the life cycle of our clients, the three core disciplines of banking that we offer makes sense,” Norris said. “At the start, they borrow more money and tend to rely more heavily on their banker. As they mature, they become more net depositors, and as they ultimately get to the point that they’re either going to pass it along to the next generation or sell the business, they begin to think about estate planning and wealth management.
Oakworth is unique for a financial services firm their size in that they began the business offering the latest technology and employed a person in-house who knew how to use it.
“Most firms that are de novo or just starting out don’t open up with a wealth management department or a head of IT; these features are typically added later,” said John Byrd Norris, a Managing Director at Oakworth. “So coming out of the gates we were a little bit different, a little bit more advanced than most banks.”
Indeed, in an effort to offer the utmost convenience, Oakworth relies heavily on information technology (IT). The bank has distributed about 80 remote electronic deposit scanners to their client’s offices. Thus, the vast majority of financial transactions are actually made without the client even leaving their desk!
But convenience isn’t just for the technologically savvy. Oakworth also offers valet banking. Just drive into their parking lot and call the office; within minutes, an Oakworth representative will walk to the car and pick up deposits or other transactions.
“The whole idea is to take the bank to the client,” says Upchurch. “This approach allows us to be in their office, in their home, or at their practice. We let our clients tell us how they want to bank.”
It’s quite possible, however, that the most unique feature of Oakworth is its internal structure. All involved are Birmingham business owners and individuals; each owns a percentage of the company, so there is not one large single shareholder.
“We’re structured internally in such a way that it resembles a partnership, rather than a highly vertical structure,” Upchurch said. “We all have a voice at the table; we’re all aware of what’s going on. Furthermore, each of us invested our own money in the endeavor; this really resonates with the market we’re focused upon.”
In designing their business, the founders agreed that Oakworth would not be siloed, a common practice in the banking industry whereby employees are responsible for and given incentives based upon their individual performance in one area of service; for example, commercial loans.
“If you are a commercial loan officer, all you do and all you care about are commercial loans. You report and get paid based upon the number of commercial loans awarded,” Upchurch said. “We offer incentive pay plans, but that is based on the performance of the whole group. This design also creates a nicer place to work, since we’re not competing against each other for clients.”
Today, Oakworth Capital Bank is profitable and continues to grow, boasting over $150 million in assets and lacking non-performing loans. The doors opened two years ago with 21 people, a group that has now expanded to 24. In the process of developing Oakworth, the founders were able to create the financial services firm of their dreams.
“When you work at a large corporation the process is largely in place and the people are largely in place,” Norris said. “When you open up your own firm, you have a clean sheet of paper on which you can put whatever you want; that is such a different experience. It allows you to think outside the box and be more creative.”
Ultimately, the client comes first at Oakworth, a practice that everyone agrees is the most effective in the long run.
“Our goal is to do what’s best for the client,” Upchurch said. “It may not be the absolute best for Oakworth in terms of the bottom line, but, over time, doing the best for the client is doing the best for us.”
The Pillars, LLC would like to thank Samuel Upchurch Jr., Oakworth’s Chairman of the Board, as well as Forest Whatley Jr., Sam Scalici Jr., and John Byrd Norris, all Managing Directors, for providing information and insight for this article.
