[Executive Summary & Strategic Initiatives](index=1&type=section&id=Executive%20Summary%20%26%20Strategic%20Initiatives) This section summarizes Q2 2025 earnings and the 'Optimize Origin' initiative for financial and cultural enhancement [Second Quarter 2025 Earnings Highlights](index=1&type=section&id=Second%20Quarter%202025%20Earnings%20Highlights) Origin Bancorp, Inc. reported decreased net income and diluted EPS for Q2 2025, while advancing the 'Optimize Origin' plan for financial enhancement | Metric | Q2 2025 (Millions) | Q1 2025 (Millions) | Change (Millions) | % Change | | :----------------------- | :------------------ | :------------------ | :---------------- | :------- | | Net Income | $14.6 | $22.4 | $(7.8) | -34.8% | | Diluted EPS | $0.47 | $0.71 | $(0.24) | -33.8% | | PTPP Earnings | $21.5 | $32.0 | $(10.5) | -32.8% | - Net interest income reached **$82.1 million**, an increase of **$3.7 million (4.7%)** from the linked quarter, marking its highest level in the past nine quarters[3](index=3&type=chunk) [Optimize Origin Initiative](index=1&type=section&id=Optimize%20Origin%20Initiative) The 'Optimize Origin' initiative aims to achieve elite financial performance and enhance company culture through strategic pillars - The initiative is built on three primary pillars: - Productivity, Delivery & Efficiency - Balance Sheet Optimization - Culture & Employee Engagement[4](index=4&type=chunk) - Near-term target: greater than a **1% ROAA** run rate by Q4 2025, with an ultimate target of top quartile ROAA[4](index=4&type=chunk) - Actions taken are expected to drive an annual earnings improvement of approximately **$34.2 million** on a pre-tax pre-provision basis, an increase of **$10.8 million** since the last quarterly update due to additional benefits from increasing Argent Financial ownership and further securities portfolio optimization[4](index=4&type=chunk) [Results of Operations for the Quarter Ended June 30, 2025](index=2&type=section&id=Results%20of%20Operations%20for%20the%20Quarter%20Ended%20June%2030%2C%202025) This section details Q2 2025 financial performance, including net interest income, credit quality, and noninterest income and expenses [Net Interest Income and Net Interest Margin](index=2&type=section&id=Net%20Interest%20Income%20and%20Net%20Interest%20Margin) Net interest income and fully tax equivalent net interest margin expanded in Q2 2025, driven by higher loan income and strategic bond portfolio optimization | Metric | Q2 2025 | Q1 2025 | Change | | :--------------------------------- | :------ | :------ | :----- | | Net Interest Income (Millions) | $82.1 | $78.4 | $3.7 | | NIM-FTE | 3.61% | 3.44% | +17 bps| | Yield on Interest-Earning Assets | 5.87% | 5.79% | +8 bps | | Rate Paid on Interest-Bearing Liabilities | 3.25% | 3.30% | -5 bps | - The increase in net interest income was primarily driven by a **$4.1 million** increase in interest income earned on LHFI and decreases of **$1.6 million** and **$1.1 million** in interest expense paid on interest-bearing deposits and subordinated debentures, respectively[5](index=5&type=chunk) - A bond portfolio optimization strategy involved selling **$215.8 million** of lower-yielding securities (**2.60% yield**) and purchasing **$201.8 million** of higher-yielding securities (**5.23% yield**), resulting in a **$14.4 million** realized loss but an estimated annual increase in net interest income of **$5.6 million** and a **6 basis point** positive impact to NIM-FTE over twelve months[9](index=9&type=chunk)[13](index=13&type=chunk) [Credit Quality](index=4&type=section&id=Credit%20Quality) Credit quality showed mixed results in Q2 2025, with decreased past due loans but increased nonperforming loans, alongside reduced provision for credit losses | Metric | Q2 2025 (Thousands) | Q1 2025 (Thousands) | Change (Thousands) | % Change | | :-------------------------------- | :------------------ | :------------------ | :----------------- | :------- | | Past due LHFI | $67,626 | $72,774 | $(5,148) | -7.1% | | Past due 30-89 days and still accruing | $12,495 | $42,587 | $(30,092) | -70.7% | | Total nonperforming LHFI | $85,315 | $81,368 | $3,947 | +4.9% | | Provision for credit losses | $2,862 | $3,444 | $(582) | -16.9% | | Net charge-offs | $2,300 | $2,728 | $(428) | -15.7% | - Nonperforming LHFI to LHFI ratio increased to **1.11%** in Q2 2025 from **1.07%** in Q1 2025[15](index=15&type=chunk)[17](index=17&type=chunk) - Allowance for loan credit losses (ALCL) to nonperforming LHFI decreased to **108.33%** from **113.08%** in the linked quarter[15](index=15&type=chunk) [Noninterest Income](index=4&type=section&id=Noninterest%20Income) Noninterest income significantly decreased in Q2 2025 due to a loss on securities sales, partially offset by increased swap fee income | Metric | Q2 2025 (Millions) | Q1 2025 (Millions) | Change (Millions) | % Change | | :-------------------------------- | :------------------ | :------------------ | :---------------- | :------- | | Noninterest Income | $1.4 | $15.6 | $(14.2) | -91.2% | | Loss on sales of securities, net | $(14.4) | $0.0 | $(14.4) | N/A | | Insurance commission and fee income | $6.7 | $7.9 | $(1.2) | -15.2% | | Swap fee income | $1.4 | $0.5 | $0.9 | +180.0% | - The loss on sales of securities was a direct result of the bond portfolio optimization strategy[20](index=20&type=chunk) - Swap fee income increased due to a favorable interest rate environment and increased focus on marketing customer swaps as part of 'Optimize Origin'[22](index=22&type=chunk) [Noninterest Expense](index=5&type=section&id=Noninterest%20Expense) Noninterest expense remained stable in Q2 2025, with decreases in occupancy costs offset by increases in salaries and data processing expenses | Metric | Q2 2025 (Millions) | Q1 2025 (Millions) | Change (Thousands) | % Change | | :-------------------------- | :------------------ | :------------------ | :----------------- | :------- | | Noninterest Expense | $62.0 | $62.1 | $(85) | -0.1% | | Occupancy and equipment, net | $7.2 | $8.5 | $(1,357) | -15.9% | | Salaries and employee benefits | $38.3 | $37.7 | $549 | +1.5% | | Data processing | $3.4 | $3.0 | $475 | +15.8% | - The decrease in occupancy and equipment costs was primarily due to expenses incurred in the linked quarter related to banking center closures as part of 'Optimize Origin'[24](index=24&type=chunk) - The increase in salaries and employee benefit expense was mainly due to an adjustment of the incentive compensation accrual in the linked quarter[24](index=24&type=chunk) [Financial Condition](index=5&type=section&id=Financial%20Condition) This section reviews the company's balance sheet at June 30, 2025, focusing on changes in loans, securities, deposits, and borrowings [Loans](index=5&type=section&id=Loans) Total loans held for investment increased in Q2 2025, driven by growth in mortgage warehouse lines and multi-family real estate | Metric | June 30, 2025 (Billions) | March 31, 2025 (Billions) | Change (Millions) | % Change | | :-------------------------------- | :------------------------ | :------------------------ | :---------------- | :------- | | Total LHFI | $7.68 | $7.59 | $98.9 | +1.3% | | MW LOC | $574.7 | $404.1 | $170.6 | +42.2% | | Multi-family real estate | $529.9 | $489.8 | $40.1 | +8.2% | | Construction/land/land development | $653.7 | $798.6 | $(144.9) | -18.1% | [Securities](index=5&type=section&id=Securities) Total securities decreased in Q2 2025 due to maturities and net sales from a bond portfolio optimization strategy, improving comprehensive loss | Metric | June 30, 2025 (Billions) | March 31, 2025 (Billions) | Change (Millions) | % Change | | :-------------------------------- | :------------------------ | :------------------------ | :---------------- | :------- | | Total Securities | $1.14 | $1.18 | $(34.9) | -3.0% | | Accumulated other comprehensive loss, net of taxes | $(73.6) | $(90.4) | $16.9 | -18.6% | | Weighted average effective duration | 4.52 years | 4.10 years | +0.42 years | +10.2% | - The decrease in securities was primarily due to maturities of short-term investments and net sales of available-for-sale securities during the current quarter[28](index=28&type=chunk) [Deposits](index=5&type=section&id=Deposits) Total deposits decreased in Q2 2025, influenced by seasonal public fund movements and declines in interest-bearing demand and time deposits | Metric | June 30, 2025 (Billions) | March 31, 2025 (Billions) | Change (Millions) | % Change | | :-------------------------------- | :------------------------ | :------------------------ | :---------------- | :------- | | Total Deposits | $8.12 | $8.34 | $(215.4) | -2.6% | | Noninterest-bearing deposits | $1.84 | $1.89 | $(47.1) | -2.5% | | Interest-bearing demand deposits | N/A | N/A | $(159.0) | N/A | | Money market deposits | N/A | N/A | $92.6 | N/A | - Noninterest-bearing deposits as a percentage of total deposits remained stable at **22.7%** at both June 30, 2025, and March 31, 2025[28](index=28&type=chunk) [Borrowings](index=6&type=section&id=Borrowings) FHLB advances and other borrowings significantly increased in Q2 2025 to meet current liquidity needs | Metric | June 30, 2025 (Millions) | March 31, 2025 (Millions) | Change (Millions) | % Change | | :-------------------------------- | :------------------------ | :------------------------ | :---------------- | :------- | | FHLB advances and other borrowings | $127.8 | $12.5 | $115.3 | +922.4% | | Average FHLB advances | $104.5 | $6.2 | $98.3 | +1585.5% | | Average rate paid on FHLB advances and other borrowings | 4.36% | 2.75% | +1.61% | +58.5% | - The increase in FHLB advances was primarily due to an increase in FHLB short-term borrowings of **$115.0 million** used primarily to meet current liquidity needs[34](index=34&type=chunk) [Company Information](index=6&type=section&id=Company%20Information) This section details the Q2 2025 earnings call, company overview, and disclosures on non-GAAP measures and forward-looking statements [Conference Call Details](index=6&type=section&id=Conference%20Call%20Details) Origin Bancorp, Inc. will host a conference call on July 24, 2025, to discuss its Q2 2025 financial results - Conference call to discuss Q2 2025 results on Thursday, July 24, 2025, at 8:00 a.m. Central Time[29](index=29&type=chunk) - Access via phone: +1 (888) 700-7550 (U.S. Toll Free), Conference ID: 05905. Webcast available at www.origin.bank under investor relations[29](index=29&type=chunk) [About Origin Bancorp, Inc.](index=6&type=section&id=About%20Origin%20Bancorp%2C%20Inc.) Origin Bancorp, Inc. is a Louisiana-headquartered financial holding company providing personalized banking services across multiple states through Origin Bank - Origin Bancorp, Inc. is a financial holding company headquartered in Ruston, Louisiana[31](index=31&type=chunk) - Origin Bank, founded in **1912**, provides personalized relationship banking and operates over **55 locations** in multiple states[31](index=31&type=chunk) [Non-GAAP Financial Measures](index=6&type=section&id=Non-GAAP%20Financial%20Measures) The company uses supplemental non-GAAP financial measures like PTPP earnings and tangible book value for additional performance insights - Non-GAAP measures used include PTPP earnings, PTPP ROAA, tangible book value per common share, ROATCE, and core efficiency ratio[32](index=32&type=chunk) - These measures are supplemental and should be viewed in addition to, not as an alternative for, GAAP reported results[32](index=32&type=chunk) [Forward-Looking Statements](index=7&type=section&id=Forward-Looking%20Statements) This section contains forward-looking statements subject to various risks and uncertainties, and readers are cautioned against undue reliance - Forward-looking statements cover future financial performance, business and growth strategies, projected plans, and objectives[35](index=35&type=chunk) - Key risk factors include economic conditions, changes in benchmark interest rates, deterioration of asset quality, regulatory requirements, and operational risks[35](index=35&type=chunk) - The company does not undertake any obligation to publicly update or review any forward-looking statement[35](index=35&type=chunk) [Financial Tables (Unaudited)](index=9&type=section&id=Financial%20Tables%20%28Unaudited%29) This section presents unaudited financial tables, covering quarterly and year-to-date data, consolidated statements, balance sheets, loan data, and non-GAAP reconciliations [Selected Quarterly Financial Data](index=9&type=section&id=Selected%20Quarterly%20Financial%20Data) This table summarizes key quarterly financial performance metrics and balance sheet data for Origin Bancorp, Inc | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :-------------------------------- | :------ | :------ | :------ | | Net income (thousands) | $14,647 | $22,411 | $20,989 | | Diluted EPS | $0.47 | $0.71 | $0.67 | | Total LHFI (thousands) | $7,684,446 | $7,585,526 | $7,959,171 | | Total deposits (thousands) | $8,123,036 | $8,338,412 | $8,510,842 | | NIM-FTE | 3.61% | 3.44% | 3.17% | | ROAA (annualized) | 0.60% | 0.93% | 0.84% | | Tangible book value per common share | $33.33 | $32.43 | $29.77 | [Selected Year-To-Date Financial Data](index=10&type=section&id=Selected%20Year-To-Date%20Financial%20Data) This table provides a year-to-date overview of Origin Bancorp, Inc.'s financial performance for the six months ended June 30, 2025 | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :----------------------------- | :----------------------------- | | Net interest income (thousands) | $160,595 | $147,213 | | Net income (thousands) | $37,058 | $43,621 | | Diluted EPS | $1.18 | $1.40 | | NIM-FTE | 3.52% | 3.18% | | ROAA (annualized) | 0.77% | 0.88% | | Core efficiency ratio | 69.29% | 65.40% | [Consolidated Quarterly Statements of Income](index=11&type=section&id=Consolidated%20Quarterly%20Statements%20of%20Income) This section details consolidated quarterly statements of income, breaking down interest income, expenses, and net income over five quarters | Metric (Thousands) | Q2 2025 | Q1 2025 | Q2 2024 | | :-------------------------------- | :------ | :------ | :------ | | Total interest and dividend income | $134,637 | $132,543 | $141,794 | | Total interest expense | $52,501 | $54,084 | $67,904 | | Net interest income | $82,136 | $78,459 | $73,890 | | Provision for credit losses | $2,862 | $3,444 | $5,231 | | Total noninterest income (loss) | $1,368 | $15,602 | $22,465 | | Total noninterest expense | $61,983 | $62,068 | $64,388 | | Net income | $14,647 | $22,411 | $20,989 | [Consolidated Balance Sheets](index=12&type=section&id=Consolidated%20Balance%20Sheets) This table presents the consolidated balance sheets for Origin Bancorp, Inc. over five quarters, detailing assets, liabilities, and equity | Metric (Thousands) | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :-------------------------------- | :------------ | :------------- | :------------ | | Total assets | $9,678,158 | $9,750,372 | $9,947,182 | | Total LHFI | $7,684,446 | $7,585,526 | $7,959,171 | | Total securities | $1,144,032 | $1,178,974 | $1,178,163 | | Total deposits | $8,123,036 | $8,338,412 | $8,510,842 | | FHLB advances and other borrowings | $127,843 | $12,488 | $40,737 | | Total stockholders' equity | $1,205,769 | $1,180,177 | $1,095,894 | [Loan Data](index=13&type=section&id=Loan%20Data) This section provides detailed loan data, including composition, nonperforming assets, past due loans, and credit loss allowance over five quarters | Metric (Thousands) | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :-------------------------------- | :------------ | :------------- | :------------ | | Total LHFI | $7,684,446 | $7,585,526 | $7,959,171 | | Total nonperforming LHFI | $85,315 | $81,368 | $75,812 | | ALCL | $92,426 | $92,011 | $100,865 | | ALCL to nonperforming LHFI | 108.33% | 113.08% | 133.05% | | Net charge-offs (recoveries) to total average LHFI (annualized) | 0.12% | 0.15% | 0.15% | [Average Balances and Yields/Rates](index=15&type=section&id=Average%20Balances%20and%20Yields%2FRates) This table presents average balances, yields, and rates for interest-earning assets and liabilities, offering insights into net interest spread and margin | Metric | Q2 2025 Average Balance (Thousands) | Q2 2025 Yield/Rate | Q1 2025 Average Balance (Thousands) | Q1 2025 Yield/Rate | Q2 2024 Average Balance (Thousands) | Q2 2024 Yield/Rate | | :-------------------------------- | :-------------------------------- | :----------------- | :-------------------------------- | :----------------- | :-------------------------------- | :----------------- | | Total interest-earning assets | $9,193,833 | 5.87% | $9,282,898 | 5.79% | $9,441,190 | 6.04% | | Total interest-bearing liabilities | $6,479,644 | 3.25% | $6,649,167 | 3.30% | $6,866,542 | 3.98% | | Net interest spread | N/A | 2.62% | N/A | 2.49% | N/A | 2.06% | | NIM-FTE | N/A | 3.61% | N/A | 3.44% | N/A | 3.17% | [Notable Items](index=16&type=section&id=Notable%20Items) This section details specific notable financial items and their impact on diluted earnings per share for quarterly and year-to-date periods **Quarterly Notable Items (Q2 2025):** | Item | $ Impact (Thousands) | EPS Impact | | :-------------------------------- | :------------------- | :--------- | | Loss on sales of securities, net | $(14,448) | $(0.36) | | Operating expense related to strategic Optimize Origin initiatives | $(428) | $(0.01) | | Total notable items | $(15,564) | $(0.39) | **Year-To-Date Notable Items (Six Months Ended June 30, 2025):** | Item | $ Impact (Thousands) | EPS Impact | | :-------------------------------- | :------------------- | :--------- | | Loss on sales of securities, net | $(14,448) | $(0.36) | | Operating expense related to strategic Optimize Origin initiatives | $(2,043) | $(0.05) | | Total notable items | $(17,819) | $(0.45) | [Non-GAAP Financial Measures Reconciliations](index=18&type=section&id=Non-GAAP%20Financial%20Measures%20Reconciliations) This section provides detailed reconciliations of non-GAAP financial measures to their most directly comparable GAAP measures for various periods **PTPP Earnings Reconciliation (Q2 2025):** | Metric (Thousands) | Amount | | :----------------------- | :----- | | Net income | $14,647 | | Provision for credit losses | $2,862 | | Income tax expense | $4,012 | | PTPP earnings (non-GAAP) | $21,521 | **Tangible Book Value Per Common Share Reconciliation (June 30, 2025):** | Metric (Thousands) | Amount | | :----------------------- | :----- | | Total common stockholders' equity | $1,205,769 | | Goodwill | $(128,679) | | Other intangible assets, net | $(36,444) | | Tangible common equity | $1,040,646 | | Common shares outstanding | 31,224,718 | | Tangible book value per common share (non-GAAP) | $33.33 | **Core Efficiency Ratio Reconciliation (Q2 2025):** | Metric (Thousands) | Amount | | :----------------------- | :----- | | Total noninterest expense | $61,983 | | Adjusted total noninterest expense | $53,523 | | Adjusted total revenue | $72,550 | | Core efficiency ratio (non-GAAP) | 73.77% |

Core Viewpoint - Wall Street anticipates a year-over-year increase in earnings for Origin Bancorp, with a focus on how actual results compare to estimates impacting stock price [1][2]. Earnings Expectations - The earnings report is expected on July 23, with a consensus EPS estimate of $0.78, reflecting a +16.4% year-over-year change, and revenues projected at $97.55 million, up 1.2% from the previous year [3]. Estimate Revisions - The consensus EPS estimate has remained unchanged over the last 30 days, indicating a stable outlook from analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that a positive or negative Earnings ESP reading indicates the likely deviation of actual earnings from the consensus estimate, with a positive reading being a strong predictor of an earnings beat [6][8]. Current Earnings ESP for Origin Bancorp - For Origin Bancorp, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -7.30%, indicating a bearish outlook from analysts [11]. Historical Performance - In the last reported quarter, Origin Bancorp had an earnings surprise of +4.41%, beating the expected EPS of $0.68 with actual earnings of $0.71 [12]. Overall Assessment - Despite the potential for an earnings beat, Origin Bancorp does not appear to be a compelling candidate for an earnings surprise, and investors should consider other factors before making decisions [16].

Core Viewpoint - Origin Bancorp, Inc. plans to release its second quarter 2025 financial results on July 23, 2025, and will hold a conference call on July 24, 2025, to discuss these results [1] Group 1: Conference Call Details - The conference call will be hosted by key executives including Drake Mills, William J. Wallace, IV, and Lance Hall [1] - Participants can join the call by dialing specific numbers and entering a Conference ID [2] - A live audio-only webcast will be available on Origin's website for those who prefer to listen online [2] Group 2: Company Background - Origin Bancorp, Inc. is a financial holding company based in Ruston, Louisiana, with a history dating back to 1912 [4] - The company operates over 55 locations across various regions including Dallas/Fort Worth, East Texas, and the Florida Panhandle [4] - Origin Bank focuses on personalized relationship banking for businesses, municipalities, and personal clients [4]

Technical Analysis - Origin Bancorp, Inc. (OBK) has reached a significant support level, indicating a potential investment opportunity from a technical perspective [1] - OBK's 50-day simple moving average has recently crossed above its 200-day moving average, forming a "golden cross," which is a bullish signal [1] Golden Cross Characteristics - A golden cross consists of three stages: a downtrend that bottoms out, a shorter moving average crossing above a longer moving average, and a subsequent upward price movement [2] - This pattern is contrasted with a "death cross," which indicates potential bearish momentum [2] Performance and Outlook - OBK shares have increased by 6.3% over the past four weeks, suggesting positive momentum [3] - The company holds a 2 (Buy) rating on the Zacks Rank, indicating a strong potential for a breakout [3] - The earnings outlook for OBK is positive, with no earnings estimates cut and one revision higher in the past 60 days, along with an increase in the Zacks Consensus Estimate [3] Investment Consideration - Given the technical indicators and positive earnings estimates, OBK should be considered for an investment watchlist [4]

Group 1 - Origin Bancorp (OBK) has been upgraded to a Zacks Rank 2 (Buy) due to an upward trend in earnings estimates, which significantly impacts stock prices [1][3] - The Zacks rating system focuses on changes in earnings estimates, providing a more objective measure for investors compared to traditional Wall Street ratings [2][6] - The upgrade reflects a positive outlook on Origin Bancorp's earnings, potentially leading to increased buying pressure and a rise in stock price [3][5] Group 2 - The correlation between earnings estimate revisions and stock price movements is strong, with institutional investors using these estimates to determine fair value [4][6] - Rising earnings estimates indicate an improvement in the company's underlying business, suggesting that investors may respond positively by driving the stock price higher [5][10] - The Zacks Rank system classifies stocks based on earnings estimates, with only the top 20% receiving a "Strong Buy" or "Buy" rating, indicating superior potential for market-beating returns [9][10] Group 3 - For the fiscal year ending December 2025, Origin Bancorp is expected to earn $3.18 per share, with a 1.4% increase in the Zacks Consensus Estimate over the past three months [8]

[Financial and Operating Performance](index=44&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) [Q1 2025 Financial Highlights](index=45&type=section&id=2025%20First%20Quarter%20Highlights) Origin Bancorp's Q1 2025 highlights include $22.4 million net income, improved net interest income, and strategic debenture redemption Key Financial Highlights | Financial Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net Income | $22.4 million | $22.6 million | | Diluted EPS | $0.71 | $0.73 | | Net Interest Income | $78.5 million | $73.3 million | | Net Interest Margin (FTE) | 3.44% | 3.19% | | Total Loans (LHFI) | $7.59 billion | - | | Total Deposits | $8.34 billion | - | | Book Value per Common Share | $37.77 | - | - Total subordinated debentures decreased by **$70.3 million** (**44.0%**) to **$89.6 million** at March 31, 2025, from **$159.9 million** at December 31, 2024, following the redemption of eligible debentures[201](index=201&type=chunk)[228](index=228&type=chunk) - The company announced a strategic initiative, "Optimize Origin," aimed at improving financial performance with a target of achieving a **>1% ROAA** run rate by Q4 2025, expected to drive approximately **$23.4 million** in annual pre-tax, pre-provision earnings improvement[195](index=195&type=chunk) [Results of Operations Analysis](index=45&type=section&id=Results%20of%20Operations) Q1 2025 results show increased net interest income driven by lower funding costs, alongside declines in noninterest income and rises in noninterest expense [Net Interest Income and Margin](index=45&type=section&id=Net%20Interest%20Income%20and%20Net%20Interest%20Margin) Net interest income increased to $78.5 million in Q1 2025, with the NIM-FTE expanding to 3.44% due to lower funding costs Net Interest Income and Margin Trends | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Net Interest Income | $78.5M | $73.3M | +$5.1M | | Net Interest Margin (FTE) | 3.44% | 3.19% | +25 bps | | Yield on Earning Assets | 5.79% | 5.99% | -20 bps | | Cost of Interest-Bearing Liabilities | 3.30% | 3.88% | -58 bps | - The decrease in interest income on loans held for investment (LHFI) was **$10.1 million**, primarily due to lower average balances and yields on commercial loans, partially offset by a **$2.8 million** increase in income from interest-earning bank deposits[200](index=200&type=chunk) - The decrease in interest expense was primarily driven by an **$11.1 million** reduction in interest on deposits, with **$8.9 million** of that attributable to lower interest rates[199](index=199&type=chunk) [Provision for Credit Losses](index=48&type=section&id=Provision%20for%20Credit%20Losses) Total provision for credit losses increased to $3.4 million in Q1 2025, driven by off-balance sheet items despite lower loan loss provisions - Total provision expense increased by **$432,000** YoY, primarily due to an **$805,000** increase in provision for off-balance sheet items, partially offset by a **$410,000** decrease in provision for loan credit losses[212](index=212&type=chunk) - The allowance for loan credit losses (ALCL) to nonperforming loans held for investment (LHFI) was **113.08%** at March 31, 2025, a significant decrease from **243.27%** a year prior, mainly due to a **$40.9 million** increase in nonperforming LHFI, of which **$28.7 million** is related to the previously disclosed questioned loan activity[213](index=213&type=chunk) [Noninterest Income](index=49&type=section&id=Noninterest%20Income) Noninterest income decreased by $1.7 million (9.6%) to $15.6 million in Q1 2025, primarily due to losses from limited partnership investments and lower mortgage banking revenue Noninterest Income Components | Noninterest Income Component | Q1 2025 ($ thousands) | Q1 2024 ($ thousands) | $ Change | | :--- | :--- | :--- | :--- | | Insurance commission and fee income | 7,927 | 7,725 | 202 | | Mortgage banking revenue | 915 | 2,398 | (1,483) | | Limited partnership investment (loss) income | (1,692) | 138 | (1,830) | | Swap fee income | 533 | 57 | 476 | | **Total Noninterest Income** | **15,602** | **17,255** | **(1,653)** | - The decrease in mortgage banking revenue was mainly due to the **sale of substantially all of the company's MSR asset** in Q1 2024, which eliminated servicing revenue and MSR valuation adjustments in Q1 2025[217](index=217&type=chunk) [Noninterest Expense](index=50&type=section&id=Noninterest%20Expense) Noninterest expense increased by $3.4 million (5.7%) to $62.1 million in Q1 2025, driven by higher salaries and occupancy costs from strategic initiatives Noninterest Expense Components | Noninterest Expense Component | Q1 2025 ($ thousands) | Q1 2024 ($ thousands) | $ Change | | :--- | :--- | :--- | :--- | | Salaries and employee benefits | 37,731 | 35,818 | 1,913 | | Occupancy and equipment, net | 8,544 | 6,645 | 1,899 | | Intangible asset amortization | 1,761 | 2,137 | (376) | | **Total Noninterest Expense** | **62,068** | **58,707** | **3,361** | - The increase in occupancy and equipment expense was primarily due to a **$1.5 million** expense associated with the strategic consolidation of **eight banking centers**, **six of which closed** during the quarter[221](index=221&type=chunk) [Financial Condition Analysis](index=51&type=section&id=Comparison%20of%20Financial%20Condition%20at%20March%2031,%202025,%20and%20December%2031,%202024) As of March 31, 2025, total assets grew to $9.75 billion, driven by securities and deposits, while the loan portfolio remained stable despite increased nonperforming loans [Loan Portfolio](index=51&type=section&id=Loan%20Portfolio) Total loans held for investment remained stable at $7.59 billion, with growth in residential real estate offset by declines in commercial real estate and construction loans Loan Portfolio Composition | Loan Category | Balance at Mar 31, 2025 ($M) | % of Total | Balance at Dec 31, 2024 ($M) | % Change | | :--- | :--- | :--- | :--- | :--- | | Commercial Real Estate | 2,383.8 | 31.4% | 2,477.4 | (3.8)% | | Construction/Land/Dev | 798.6 | 10.5% | 864.0 | (7.6)% | | Residential Real Estate | 1,955.0 | 25.8% | 1,857.6 | 5.2% | | Commercial & Industrial | 2,022.1 | 26.7% | 2,002.6 | 1.0% | | Mortgage Warehouse | 404.1 | 5.3% | 349.1 | 15.8% | | **Total LHFI** | **7,585.5** | **100.0%** | **7,573.7** | **0.2%** | - At March 31, 2025, **59.6%** of the loan portfolio (**$4.52 billion**) had variable interest rates, while **40.4%** (**$3.06 billion**) had fixed rates[237](index=237&type=chunk) [Asset Quality and Allowance for Credit Losses](index=53&type=section&id=Nonperforming%20Assets) Nonperforming assets increased to $83.4 million in Q1 2025, with NPLs rising to $81.4 million, while ALCL coverage of NPLs stood at 113.08% Asset Quality Metrics | Asset Quality Metric | Mar 31, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Total Nonperforming Assets | $83.4 million | $78.6 million | | Total Nonperforming LHFI | $81.4 million | $75.0 million | | Ratio of NPLs to Total LHFI | 1.07% | 0.99% | | ALCL | $92.0 million | $91.1 million | | ALCL / Total LHFI | 1.21% | 1.20% | | ALCL / NPLs | 113.08% | 121.41% | - Classified and nonperforming loans were **negatively impacted by litigation** related to **questioned activity involving a former banker**, with the company continuing to work toward a resolution[243](index=243&type=chunk)[185](index=185&type=chunk)[186](index=186&type=chunk) [Securities Portfolio](index=57&type=section&id=Securities) The securities portfolio grew by 5.3% to $1.18 billion, primarily in AFS securities, with a shortened weighted average effective duration - The increase in the securities portfolio was driven by **new purchases** and an **improvement in the unrealized loss position**, partially offset by principal paydowns and maturities[261](index=261&type=chunk) - The company **does not hold any Fannie Mae or Freddie Mac preferred stock, CDOs, CLOs, or securities directly backed by subprime or Alt-A mortgages**[263](index=263&type=chunk) [Deposits](index=58&type=section&id=Deposits) Total deposits increased by $115.3 million (1.4%) to $8.34 billion, driven by money market growth and a decrease in the average rate paid on deposits Deposit Composition | Deposit Category | Balance at Mar 31, 2025 ($M) | % of Total | Balance at Dec 31, 2024 ($M) | % Change | | :--- | :--- | :--- | :--- | :--- | | Noninterest-bearing demand | 1,888.8 | 22.7% | 1,900.7 | (0.6)% | | Money market | 3,209.6 | 38.5% | 2,930.7 | 9.5% | | Interest-bearing demand | 1,993.4 | 23.9% | 2,060.5 | (3.3)% | | Time deposits | 863.0 | 10.3% | 941.0 | (8.3)% | | **Total Deposits** | **8,338.4** | **100.0%** | **8,223.1** | **1.4%** | - Estimated uninsured deposits totaled **$3.72 billion** at March 31, 2025, which includes **$822.0 million** in public fund deposits collateralized by pledged assets[274](index=274&type=chunk) [Liquidity and Capital Resources](index=59&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintained strong liquidity and capital, with stockholders' equity at $1.18 billion and all regulatory capital ratios well above 'well capitalized' thresholds Regulatory Capital Ratios | Regulatory Capital Ratios (Company) | Mar 31, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Common Equity Tier 1 (CET1) Ratio | 13.57% | 13.32% | | Tier 1 Capital Ratio | 13.77% | 13.52% | | Total Capital Ratio | 15.81% | 16.44% | | Tier 1 Leverage Ratio | 11.47% | 11.08% | - The company redeemed **$70.0 million** in subordinated debentures, recognizing **$681,000** of accelerated amortization of the original issue discount, expected to result in approximately **$2.1 million** in annualized future net interest expense savings[275](index=275&type=chunk) - Available liquidity at March 31, 2025 included **$2.15 billion** from the FHLB and **$1.39 billion** from the FRBD discount window, with no borrowings outstanding against these lines[276](index=276&type=chunk)[286](index=286&type=chunk) [Risk Management and Controls](index=63&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) [Market Risk Disclosures](index=63&type=section&id=Interest%20Rate%20Sensitivity%20and%20Market%20Risk) The company's primary market risk is interest rate volatility, with NII and fair value of equity sensitivity within policy limits under various rate shock scenarios Interest Rate Sensitivity Analysis | Change in Interest Rates (bps) | % Change in Net Interest Income | % Change in Fair Value of Equity | | :--- | :--- | :--- | | +400 | 15.9% | (6.6)% | | +200 | 8.3% | (2.6)% | | +100 | 4.3% | (1.1)% | | -100 | (5.1)% | 0.8% | | -200 | (8.2)% | 1.5% | - The company's internal policy limits the decline in estimated NII for a 100-basis point shift to no more than **10.0%**, with the current simulation showing a **5.1%** decline in a **-100 bps** scenario, which is well within this limit[300](index=300&type=chunk)[303](index=303&type=chunk) [Controls and Procedures](index=65&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal control over financial reporting - The CEO and CFO concluded that disclosure controls and procedures were **effective** as of the end of the reporting period[307](index=307&type=chunk) - **No material changes** to internal control over financial reporting were identified during the first quarter of 2025[308](index=308&type=chunk) [Other Information](index=66&type=section&id=Part%20II%20-%20OTHER%20INFORMATION) [Legal Proceedings and Risk Factors](index=66&type=section&id=Item%201.%20Legal%20Proceedings) The company maintains a $2.8 million contingency reserve for legal proceedings related to a former banker, with no material changes to previously disclosed risk factors - A contingency reserve of **$2.8 million** was held at March 31, 2025, related to questioned activity by a former banker in the East Texas market, with total expenses associated with this matter being **$543,000** for Q1 2025[186](index=186&type=chunk) - There were **no material changes** to the risk factors disclosed in the company's 2024 Form 10-K during the quarter[312](index=312&type=chunk) [Equity Repurchases and Other Disclosures](index=66&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities,%20Use%20of%20Proceeds%20and%20Issuer%20Purchases%20of%20Equity%20Securities) The company has a $50 million stock repurchase program authorized, but no shares were repurchased during Q1 2025, and no Rule 10b5-1 trading arrangements were modified - The company has a **$50 million** stock repurchase program authorized in July 2022[313](index=313&type=chunk) - **No stock repurchases** were made during the quarter ended March 31, 2025[314](index=314&type=chunk)

Financial Performance Highlights - Origin Bancorp's annualized Return on Average Assets (ROAA) was 093% for 1Q25, an increase of 036% compared to 4Q24[35] - Pre-Tax, Pre-Provision (PTPP) annualized ROAA was 132% for 1Q25, up 082% from the previous quarter[35] - Net Interest Income (NII) reached $785 million in 1Q25, the highest level in eight quarters, reflecting a 01% increase compared to 4Q24[38] - Total deposits amounted to $834 billion in 1Q25, representing a $1153 million or 14% increase from 4Q24[38] Strategic Initiatives and Outlook - The company aims for a 1%+ ROAA run rate by 4Q25[17] - Production optimization is expected to yield ~$115 million in annualized pre-tax benefits[20] - Securities optimization is projected to generate ~$69 million in annualized pre-tax benefits[20] - Total estimated annualized benefit from optimization initiatives is ~$234 million[20] Loan Portfolio and Credit Quality - Total Loans Held for Investment (LHFI) were $7586 billion as of March 31, 2025[35,40] - Texas franchise represents 71% of LHFI and 55% of deposits as of March 31, 2025[49] - Nonperforming LHFI to LHFI ratio was 107%[61]

Financial Data and Key Metrics Changes - In Q1 2025, diluted earnings per share were reported at $0.71, with net interest margin expanding by 11 basis points to 3.44% [23][27] - Annualized return on assets (ROA) was 93 basis points, with a target of reaching a run rate of 1% or greater by Q4 2025 [9][7] - Deposits increased by 1.4% during the quarter, with core deposits growing 7.2% on an annualized basis [24][14] Business Line Data and Key Metrics Changes - The mortgage business is undergoing restructuring, expected to improve annual pre-tax earnings by approximately $1.5 million starting in the second half of the year [8] - Non-interest income increased to $15.6 million in Q1, driven by seasonal improvements in the insurance business [29] - Non-interest expense decreased to $62.1 million in Q1 from $65.4 million in Q4, benefiting from Optimize Origin efforts [30] Market Data and Key Metrics Changes - The company anticipates mid to high-single-digit loan growth in 2025, supported by deposit growth [13] - Past due loans held for investment increased to 0.96%, while classified loans rose to 1.68% of total loans [18][19] - Non-interest-bearing deposits were stable at about 23% of total deposits, with year-over-year growth noted for the first time since Q4 2022 [25] Company Strategy and Development Direction - The company is focused on the "Optimize Origin" initiative to achieve elite-level financial performance and improve operational efficiency [7][10] - A partnership model in the mortgage business is expected to enhance efficiency and profitability [8] - The company is committed to deepening customer relationships to drive long-term shareholder value [15] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about growth opportunities despite macroeconomic uncertainties, citing strong customer relationships and market positioning [34][48] - The company is prepared to navigate potential market challenges and capitalize on opportunities, drawing on past experiences during economic downturns [34][108] - Management remains focused on maintaining a disciplined approach to loan growth and deposit management [27][59] Other Important Information - The tangible book value grew to $32.43, marking the tenth consecutive quarter of linked quarter growth [33] - The company has plans for share repurchase activity and capital deployment opportunities [88] Q&A Session Summary Question: Loan growth outlook amidst macro uncertainty - Management remains optimistic about loan growth, citing energized bankers and building pipelines despite some project delays due to macroeconomic factors [41][42][44] Question: Impact of mortgage restructuring on bottom line - The company anticipates a portion of savings from the Optimize Origin initiative will flow to the bottom line while still investing in growth opportunities [51][52] Question: Competition in deposit pricing and loan yields - Loan yields remain stable in the 7.3% to 7.5% range, with management pleased about the competitive landscape [93] Question: Update on hiring efforts and regional performance - The company is actively hiring productive commercial bankers and is optimistic about growth in the Southeast region [74] Question: Potential for share buybacks - Management views current share prices as attractive and plans to engage in share repurchase activity [88]

Financial Data and Key Metrics Changes - The company reported diluted earnings per share of $0.71 for Q1, with a net expense impact of $2,300,000 equivalent to $0.06 in EPS pressure [16][18] - Net interest margin expanded by 11 basis points to 3.44%, exceeding expectations due to better loan yields and deposit costs [18][19] - Annualized return on assets (ROA) was 93 basis points, with a target of reaching a run rate of 1% or greater by Q4 [6][7] Business Line Data and Key Metrics Changes - The mortgage business is undergoing restructuring, expected to improve annual pretax earnings by approximately $1,500,000 starting in the second half of the year [6][10] - Non-interest income for Q1 was reported at $15,600,000, an increase from $14,100,000 in Q4, primarily due to seasonal factors in the insurance business [18][19] - Non-interest expense decreased to $62,100,000 in Q1 from $65,400,000 in Q4, with further reductions anticipated due to the Optimize Origin initiative [18][19] Market Data and Key Metrics Changes - Deposits, excluding brokered deposits, grew by 7.2% on an annualized basis, setting the stage for anticipated loan growth [10][17] - Non-interest bearing deposits remained stable at about 23% of total deposits, with expectations to maintain this range through 2025 [17] - The loan-to-deposit ratio, excluding mortgage warehouse, was reported at 86.1%, below the 90% target [17] Company Strategy and Development Direction - The company is focused on the "Optimize Origin" initiative to achieve elite financial performance and improve operational efficiency [5][8] - A strategic goal is to maintain mid to high single-digit loan growth in 2025, supported by core deposit growth [10][18] - The company is exploring opportunities for share buybacks and capital deployment to enhance shareholder value [59][60] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about growth opportunities despite macroeconomic uncertainties, citing strong customer relationships and market positioning [21][75] - The company is adjusting loan growth expectations to the lower end of the previous guidance due to macroeconomic factors but remains confident in achieving growth [22][29] - Management highlighted the importance of maintaining a strong credit culture and proactive client selection to optimize the portfolio [11][30] Other Important Information - The company has successfully exited approximately $200,000,000 in client relationships that did not fit its selection criteria [12][30] - The tangible book value grew sequentially to $32.43, marking the tenth consecutive quarter of growth [20] - Regulatory capital levels remain above well-capitalized standards, providing flexibility for future growth initiatives [20] Q&A Session Summary Question: Loan growth outlook amidst macro uncertainty - Management acknowledged optimism in loan growth despite adjusting expectations to the lower end of the previous guidance, citing strong pipelines and customer engagement [22][24][29] Question: Impact of Optimize Origin initiative on bottom line - Management indicated that a portion of the savings from the Optimize Origin initiative would flow to the bottom line while also investing in growth opportunities [31][32] Question: Deposit pricing competition and loan yields - Management reported stable loan yields in the 7.3% to 7.5% range, with proactive communication with customers regarding deposit pricing [64][66] Question: Update on hiring efforts and team performance - Management confirmed ongoing strategic hiring efforts, particularly in North Texas and the Southeast, with positive performance reported from the Houston team [45][48] Question: Mortgage segment restructuring and revenue outlook - Management noted that restructuring the mortgage segment would lower expenses but also impact revenue, with expectations for some offsetting tailwinds [49][50]

Financial Performance - For the quarter ended March 2025, Origin Bancorp reported revenue of $94.06 million, an increase of 3.8% year-over-year [1] - EPS for the quarter was $0.71, down from $0.73 in the same quarter last year [1] - The reported revenue exceeded the Zacks Consensus Estimate of $92.75 million, resulting in a surprise of +1.41% [1] - The company delivered an EPS surprise of +4.41%, with the consensus EPS estimate being $0.68 [1] Key Metrics - Efficiency Ratio was reported at 66%, slightly above the two-analyst average estimate of 65.9% [4] - Net Interest Margin (NIM) - FTE was 3.4%, matching the two-analyst average estimate [4] - Average Balance of Total interest-earning assets was $9.28 billion, consistent with the average estimate based on two analysts [4] - Total nonperforming loans amounted to $81.37 million, slightly higher than the estimated $80.77 million [4] - Total nonperforming assets were reported at $83.36 million, lower than the average estimate of $85.15 million [4] - Net charge-offs to total average LHFI (annualized) was 0.2%, in line with the estimated 0.2% [4] - Total Noninterest Income was $15.60 million, below the average estimate of $16.18 million [4] - Net Interest Income was reported at $78.46 million, exceeding the estimated $76.56 million [4] Stock Performance - Shares of Origin Bancorp have returned -13.1% over the past month, compared to the Zacks S&P 500 composite's -6.6% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]