UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____________ to __________ Commission file number 001-38487 Origin Bancorp, Inc. (Exact name of registrant as specified in its charter) Louisiana 72-1192928 (State ...

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Exhibit 99.1 For Immediate Release ORIGIN BANCORP, INC. REPORTS EARNINGS FOR FOURTH QUARTER AND FULL YEAR 2025 RUSTON, Louisiana (January 28, 2026) - Origin Bancorp, Inc. (NYSE: OBK) ("Origin," "we," "our" or the "Company"), the holding company for Origin Bank (the "Bank"), today announced net income of $29.5 million, or $0.95 diluted earnings per share ("EPS") for the quarter ended December 31, 2025, compared to net income of $8.6 million, or $0.27 diluted EPS, for the quarter ended September 30, 2025. Pre ...

Financial Performance - Net income decreased by $10.0 million, or 53.6%, to $8.6 million for Q3 2025 compared to $18.6 million for Q3 2024[244] - Net income for the nine months ended September 30, 2025, decreased by $16.5 million, or 26.6%, to $45.7 million from $62.2 million for the same period in 2024[272] - Noninterest income surged by $10.1 million, or 63.4%, to $26.1 million for the three months ended September 30, 2025, compared to $16.0 million in 2024[1] - Noninterest income decreased by $12.6 million, or 22.6%, to $43.1 million, primarily due to a $14.3 million increase in loss on sales of securities[4] Interest Income and Expenses - Net interest income for Q3 2025 was $83.7 million, an increase of $8.9 million, or 11.9%, compared to Q3 2024[245] - Net interest income increased to $83.7 million for the three months ended September 30, 2025, compared to $74.8 million for the same period in 2024, reflecting a margin increase from 3.16% to 3.62%[1] - Interest expense on total interest-bearing deposits decreased by $16.0 million, with $12.0 million of the decrease attributable to lower interest rates in Q3 2025 compared to Q3 2024[246] - Interest expense on total interest-bearing deposits decreased by $42.4 million, with a significant portion attributed to lower interest rates[274] - The average rate on interest-bearing deposits declined by 81 basis points to 3.20% for Q3 2025 from 4.01% for Q3 2024[246] - The average rate paid on interest-bearing deposits decreased to 3.21% for the nine months ended September 30, 2025, from 3.94% in the same period of 2024[341] Credit Losses and Provisions - Provision for credit losses was $36.8 million for Q3 2025, reflecting an increase of $32.2 million compared to Q3 2024 due to suspected fraud[247] - Provision for credit losses rose significantly to $36.8 million for the three months ended September 30, 2025, up from $4.6 million in the same period of 2024, primarily due to suspected borrower fraud[1][2] - The company reported a $30.3 million increase in provision expense to $43.1 million for the nine months ended September 30, 2025, primarily due to suspected fraud[272] - Net charge-offs increased to $31.4 million for the three months ended September 30, 2025, from $9.5 million in the same period of 2024, largely due to fraud-related losses[1] - Net charge-offs rose by $21.4 million to $36.4 million, with a significant portion attributed to suspected borrower fraud impacting a specific loan relationship[3] Assets and Liabilities - Total assets decreased to $9,727.4 million as of September 30, 2025, from $9,985.8 million a year earlier[1] - Total assets increased by $112.6 million, or 1.2%, to $9.79 billion, with cash and cash equivalents rising by $156.7 million, or 33.3%[6] - Total liabilities increased by $43.1 million, or 0.5%, to $8.58 billion at September 30, 2025, from $8.53 billion at December 31, 2024[300] - Total deposits were $8.33 billion at September 30, 2025, an increase of $108.7 million, or 1.3%, compared to December 31, 2024[247] - Total deposits increased by $108.7 million, or 1.3%, to $8.33 billion as of September 30, 2025, compared to $8.22 billion at December 31, 2024[337] Equity and Capital - Stockholders' equity increased to $1.21 billion at September 30, 2025, from $1.15 billion at January 1, 2025, driven by net income of $45.7 million[360] - Common equity Tier 1 capital ratio for Origin Bancorp, Inc. increased to 13.59% as of September 30, 2025, up from 13.32% on December 31, 2024[363] - Total capital ratio for Origin Bancorp, Inc. decreased to 15.90% as of September 30, 2025, compared to 16.44% on December 31, 2024[363] - The company repurchased 265,248 shares of common stock in Q3 2025 at an average price of $35.85, totaling $9.5 million[364] - Year-to-date 2025 stock repurchases reached 401,647 shares at an average price of $34.59, amounting to $13.9 million[364] Market and Economic Conditions - The Federal Reserve reduced the federal funds target rate range by 25 basis points on September 17, 2025, and October 29, 2025, totaling a 150 basis points decrease from mid-2023[249] - Inflation impacts the company primarily through increased costs of goods, services, and salaries, affecting liquidity and earnings[380] - Interest rate sensitivity analysis indicates a 15.7% increase in net interest income with a +400 basis point change in interest rates[377] - The company’s interest rate risk management includes simulation models to assess the impact of interest rate changes on net interest income and fair value of equity[373]

Group 1 - The article does not provide any specific information or data regarding companies or industries [1]

Financial Performance - Net income for the quarter ended September 30, 2025, was $8.6 million, a decrease of $6.0 million, or 41.1%, compared to the linked quarter [4]. - PTPP earnings were $47.8 million for the quarter ended September 30, 2025, reflecting an increase of $26.3 million, or 122%, compared to the linked quarter [4]. - Net income for Q3 2025 was $8,623,000, down from $18,601,000 in Q3 2024, reflecting a decrease of 53.7% [37]. - Basic earnings per common share decreased to $0.28 in Q3 2025 from $0.60 in Q3 2024, a decline of 53.3% [37]. - For the nine months ended September 30, 2025, net income was $45,681,000, down from $62,222,000 in the same period last year [64]. - Annualized net income for the nine months was $61,075,000, compared to $83,114,000 in the previous year [64]. Income and Revenue - Net interest income was $83.7 million for the quarter ended September 30, 2025, an increase of $1.6 million, or 1.9%, compared to the linked quarter [5]. - Noninterest income for the quarter ended September 30, 2025, was $26.1 million, an increase of $24.8 million from the linked quarter [15]. - Total interest and dividend income for Q3 2025 was $136,139,000, a slight increase from $134,637,000 in Q2 2025 [42]. - Noninterest income for Q3 2025 was $26,128,000, a significant increase from $1,368,000 in Q2 2025 [42]. - Adjusted total revenue for the three months ended September 30, 2025, was $99,623,000, compared to $72,550,000 in the previous quarter [61]. Assets and Deposits - Total assets as of September 30, 2025, were $9,791,306,000, compared to $9,965,986,000 a year earlier, showing a decrease of 1.7% [37]. - Total deposits were $8.33 billion at September 30, 2025, reflecting an increase of $208.8 million, or 2.6%, compared to June 30, 2025 [9]. - Total deposits increased to $8,331,830,000 in Q3 2025 from $8,486,568,000 in Q3 2024, a decline of 1.8% [37]. - Total assets as of September 30, 2025, were $9,791,306,000, up from $9,678,158,000 as of June 30, 2025 [44]. - Total liabilities increased to $8,576,550,000 in Q3 2025 from $8,472,389,000 in Q2 2025 [44]. Credit Quality and Losses - The provision for credit losses was $36.8 million during the quarter, significantly higher than the $2.7 million provision for the linked quarter [12]. - Provision for credit losses increased significantly to $36,820,000 in Q3 2025 from a benefit of $(5,398,000) in Q3 2024, indicating a shift in credit quality [37]. - The net charge-offs increased by $29.1 million for the quarter ended September 30, 2025, primarily due to net charge-offs related to Tricolor Holdings, LLC [13]. - Net charge-offs for the quarter were $31,383 thousand, significantly higher than $2,300 thousand in the previous quarter [46]. - The allowance for loan credit losses (ALCL) to total LHFI ratio was 1.28% as of September 30, 2025, compared to 1.20% in the previous quarter [48]. Operational Efficiency - The efficiency ratio improved to 56.48% in Q3 2025 from 68.86% in Q3 2024, indicating better cost management [37]. - The core efficiency ratio for the nine months ended September 30, 2025, was 63.58%, an improvement from 66.09% in 2024, reflecting enhanced operational efficiency [39]. - Core efficiency ratio (non-GAAP) improved to 54.70 from 73.77 in the previous quarter [61]. Stock and Shareholder Information - The company repurchased 265,248 shares of common stock at an average price of $35.85 per share during the quarter [9]. - Stockholders' equity rose to $1,214,756,000 in Q3 2025, compared to $1,205,769,000 in Q2 2025 [44]. - Tangible book value per common share (non-GAAP) rose to $33.95 from $33.33 in the previous quarter [59]. Notable Items and Adjustments - Total notable items for the quarter resulted in a negative impact of $23,346,000, affecting EPS by $0.59 [52]. - For the nine months ended September 30, 2025, total notable items resulted in a negative impact of $41,165,000, affecting EPS by $1.04 [55]. - Operating expense related to strategic Optimize Origin initiatives for the nine months was $2,620,000, impacting EPS by $0.07 [55]. - Interest income reversal related to suspected borrower fraud amounted to $206,000, impacting EPS by $0.01 [52].

Core Insights - Tricolor, a subprime auto lender, filed for Chapter 7 bankruptcy, impacting various financial institutions including Origin Bancorp and JPMorgan Chase [1][2][5] - The bankruptcy is attributed to alleged fraud, with significant losses reported by creditors [5][16] Group 1: Financial Impact on Institutions - Origin Bancorp moved $30.1 million of loans to non-accrual status due to Tricolor's liquidation, despite the loans currently performing [2] - Renasant Bank placed $22.5 million in non-accrual status, also connected to Tricolor, while assessing collateral [3] - Fifth Third Bancorp reported a $200 million credit loss linked to Tricolor, attributing it to "significant fraud" [5] Group 2: Tricolor's Business Model and Operations - Tricolor operated as both an auto lender and dealer, a less common practice, with dealerships primarily in Texas [13] - The company targeted undocumented Hispanic immigrants, accepting individual taxpayer identification numbers to broaden its borrower base [10] - The dual role of lending and selling vehicles can mitigate losses but poses risks if the retail arm underperforms [14][15] Group 3: Legal and Investigative Developments - The FBI is investigating the situation surrounding Tricolor's bankruptcy [6][9] - Tricolor's bankruptcy petition was filed by Sidley Austin, which was initially engaged to negotiate with lenders [6][7] - The company listed assets and liabilities in the range of $1 billion to $10 billion, with 25,000 to 50,000 creditors [16]

[FORM 10-Q Filing Information](index=1&type=section&id=FORM%2010-Q) This report is a Quarterly Report on Form 10-Q for the period ended June 30, 2025, filed by Origin Bancorp, Inc. (OBK) - This is a Quarterly Report on Form 10-Q for the period ended June 30, 2025, filed by **Origin Bancorp, Inc. (OBK)** on the New York Stock Exchange[2](index=2&type=chunk)[3](index=3&type=chunk) - As of July 31, 2025, **31,224,718 shares** of Common Stock, par value $5.00 per share, were issued and outstanding[3](index=3&type=chunk) [Index](index=2&type=section&id=INDEX) This section provides a navigational index to the various parts and items within the Form 10-Q report [Cautionary Note Regarding Forward-Looking Statements](index=3&type=section&id=Cautionary%20Note%20Regarding%20Forward-Looking%20Statements) This section warns that the report contains forward-looking statements subject to risks and uncertainties - The report contains forward-looking statements that are not guarantees of future performance and are subject to difficult-to-predict risks, assumptions, and uncertainties[6](index=6&type=chunk) - Key factors that could cause actual results to differ materially include **economic uncertainty**, **technological change**, **adverse banking industry developments**, **fluctuating interest rates**, and **regulatory changes**[7](index=7&type=chunk)[8](index=8&type=chunk)[10](index=10&type=chunk) [PART I - FINANCIAL INFORMATION](index=6&type=section&id=PART%20I%20-%20FINANCIAL%20INFORMATION) This part presents the unaudited consolidated financial statements and management's discussion and analysis for the company [Item 1. Financial Statements (Unaudited)](index=6&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) This section presents the unaudited consolidated financial statements for the quarter ended June 30, 2025 [Consolidated Balance Sheets](index=6&type=section&id=Consolidated%20Balance%20Sheets) This statement provides a snapshot of the company's assets, liabilities, and stockholders' equity at specific points in time | Metric | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | Change (in thousands) | % Change | | :-------------------------------- | :----------------------------- | :------------------------------- | :-------------------- | :------- | | Total assets | $9,678,158 | $9,678,702 | $(544) | (0.01)% | | Total liabilities | $8,472,389 | $8,533,457 | $(61,068) | (0.72)% | | Total stockholders' equity | $1,205,769 | $1,145,245 | $60,524 | 5.28% | | Cash and cash equivalents | $334,111 | $470,249 | $(136,138) | (28.95)% | | Loans, net | $7,592,020 | $7,482,653 | $109,367 | 1.46% | | Total deposits | $8,123,036 | $8,223,120 | $(100,084) | (1.22)% | | Subordinated indebtedness, net | $89,657 | $159,943 | $(70,286) | (43.94)% | [Consolidated Statements of Income](index=7&type=section&id=Consolidated%20Statements%20of%20Income) This statement reports the company's revenues, expenses, and net income over specific periods, reflecting profitability | Metric | 3 Months Ended June 30, 2025 (in thousands) | 3 Months Ended June 30, 2024 (in thousands) | Change (in thousands) | % Change | | :-------------------------------- | :------------------------------------ | :------------------------------------ | :-------------------- | :------- | | Total interest and dividend income | $134,637 | $141,794 | $(7,157) | (5.05)% | | Total interest expense | $52,501 | $67,904 | $(15,403) | (22.68)% | | Net interest income | $82,136 | $73,890 | $8,246 | 11.16% | | Provision for credit losses | $2,862 | $5,231 | $(2,369) | (45.29)% | | Total noninterest income | $1,368 | $22,465 | $(21,097) | (93.91)% | | Total noninterest expense | $61,983 | $64,388 | $(2,405) | (3.73)% | | Net income | $14,647 | $20,989 | $(6,342) | (30.22)% | | Basic EPS | $0.47 | $0.68 | $(0.21) | (30.88)% | | Diluted EPS | $0.47 | $0.67 | $(0.20) | (29.85)% | | Metric | 6 Months Ended June 30, 2025 (in thousands) | 6 Months Ended June 30, 2024 (in thousands) | Change (in thousands) | % Change | | :-------------------------------- | :------------------------------------ | :------------------------------------ | :-------------------- | :------- | | Total interest and dividend income | $267,180 | $280,495 | $(13,315) | (4.75)% | | Total interest expense | $106,585 | $133,282 | $(26,697) | (20.03)% | | Net interest income | $160,595 | $147,213 | $13,382 | 9.09% | | Provision for credit losses | $6,306 | $8,243 | $(1,937) | (23.49)% | | Total noninterest income | $16,970 | $39,720 | $(22,750) | (57.27)% | | Total noninterest expense | $124,051 | $123,095 | $956 | 0.78% | | Net income | $37,058 | $43,621 | $(6,563) | (15.05)% | | Basic EPS | $1.19 | $1.41 | $(0.22) | (15.60)% | | Diluted EPS | $1.18 | $1.40 | $(0.22) | (15.71)% | [Consolidated Statements of Comprehensive Income](index=9&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) This statement presents net income and other comprehensive income items, reflecting the total change in equity from non-owner sources | Metric | 3 Months Ended June 30, 2025 (in thousands) | 3 Months Ended June 30, 2024 (in thousands) | Change (in thousands) | | :------------------------------------ | :------------------------------------ | :------------------------------------ | :-------------------- | | Net income | $14,647 | $20,989 | $(6,342) | | Other comprehensive income (loss), net of tax | $16,850 | $(2,275) | $19,125 | | Comprehensive income | $31,497 | $18,714 | $12,783 | | Metric | 6 Months Ended June 30, 2025 (in thousands) | 6 Months Ended June 30, 2024 (in thousands) | Change (in thousands) | | :------------------------------------ | :------------------------------------ | :------------------------------------ | :-------------------- | | Net income | $37,058 | $43,621 | $(6,563) | | Other comprehensive income (loss), net of tax | $32,468 | $(6,161) | $38,629 | | Comprehensive income | $69,526 | $37,460 | $32,066 | [Consolidated Statements of Changes in Stockholders' Equity](index=10&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Stockholders'%20Equity) This statement details changes in stockholders' equity, including net income, dividends, and stock transactions | Metric | January 1, 2025 (in thousands) | June 30, 2025 (in thousands) | Change (in thousands) | % Change | | :----------------------------- | :----------------------------- | :--------------------------- | :-------------------- | :------- | | Total Stockholders' Equity | $1,145,245 | $1,205,769 | $60,524 | 5.28% | | Net income | N/A | $37,058 | N/A | N/A | | Other comprehensive income, net of tax | N/A | $32,468 | N/A | N/A | | Dividends declared - common stock | N/A | $(9,522) | N/A | N/A | | Repurchase of common stock | N/A | $(4,382) | N/A | N/A | [Consolidated Statements of Cash Flows](index=12&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) This statement reports cash inflows and outflows from operating, investing, and financing activities over specific periods | Metric | 6 Months Ended June 30, 2025 (in thousands) | 6 Months Ended June 30, 2024 (in thousands) | Change (in thousands) | % Change | | :------------------------------------ | :------------------------------------ | :------------------------------------ | :-------------------- | :------- | | Net cash provided by operating activities | $56,194 | $39,029 | $17,165 | 43.98% | | Net cash used in investing activities | $(121,711) | $(204,479) | $82,768 | (40.48)% | | Net cash (used by) provided by financing activities | $(70,621) | $173,059 | $(243,680) | (140.81)% | | Net increase in cash and cash equivalents | $(136,138) | $7,609 | $(143,747) | (1889.21)% | | Cash and cash equivalents at end of period | $334,111 | $288,050 | $46,061 | 15.99% | [Condensed Notes to Consolidated Financial Statements](index=14&type=section&id=Condensed%20Notes%20to%20Consolidated%20Financial%20Statements) These notes provide additional information and explanations for the amounts presented in the consolidated financial statements [Note 1 — Significant Accounting Policies](index=14&type=section&id=Note%201%20%E2%80%94%20Significant%20Accounting%20Policies) This note outlines the company's nature of operations, basis of presentation, operating segments, and impact of accounting standards - **Origin Bancorp, Inc.** is a financial holding company operating through its wholly-owned subsidiary, **Origin Bank**, providing personalized banking services across multiple states[34](index=34&type=chunk)[223](index=223&type=chunk) - The company's senior executive management evaluates financial performance on a Company-wide basis, aggregating all community banking services into one reportable operating segment[38](index=38&type=chunk) - Implementation of **ASU No. 2023-02** and **ASU No. 2023-07** did not materially impact the Company's financial statements or disclosures[43](index=43&type=chunk)[44](index=44&type=chunk) - The Company is evaluating the impact of newly issued **ASU No. 2023-09** and **ASU No. 2024-03** on its consolidated financial statements and disclosures[45](index=45&type=chunk)[48](index=48&type=chunk) [Note 2 — Earnings Per Share](index=16&type=section&id=Note%202%20%E2%80%94%20Earnings%20Per%20Share) This note details the calculation of basic and diluted earnings per common share, including weighted average shares and dilutive effects | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :------------------------------------ | :----------------------------- | :----------------------------- | :----------------------------- | :----------------------------- | | Net income (in thousands) | $14,647 | $20,989 | $37,058 | $43,621 | | Basic earnings per common share | $0.47 | $0.68 | $1.19 | $1.41 | | Diluted earnings per common share | $0.47 | $0.67 | $1.18 | $1.40 | | Weighted average common shares outstanding | 31,192,622 | 31,042,527 | 31,199,151 | 31,011,930 | | Dilutive effect of stock-based awards | 135,196 | 89,302 | 176,653 | 98,817 | - Anti-dilutive stock-based awards, primarily due to exercise/grant price exceeding the average market price, excluded from EPS calculation were **303,140 shares** for the three months and **186,446 shares** for the six months ended June 30, 2025[49](index=49&type=chunk) [Note 3 — Securities](index=17&type=section&id=Note%203%20%E2%80%94%20Securities) This note summarizes the amortized cost, fair value, and unrealized gains/losses for available-for-sale and held-to-maturity securities | Metric | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | Change (in thousands) | % Change | | :------------------------------------ | :----------------------------- | :------------------------------- | :-------------------- | :------- | | Total securities available for sale (Fair Value) | $1,126,721 | $1,102,528 | $24,193 | 2.19% | | Total securities held to maturity (Carrying Amount) | $11,093 | $11,095 | $(2) | (0.02)% | | Total securities carried at fair value through income | $6,218 | $6,512 | $(294) | (4.51)% | | Gross unrealized losses (AFS) | $(97,226) | $(135,591) | $38,365 | (28.29)% | - At June 30, 2025, the Company had **426 individual securities** in an unrealized loss position, primarily due to noncredit-related factors like interest rate changes, with no intent to sell before recovery[57](index=57&type=chunk)[58](index=58&type=chunk) - Proceeds from sales and calls of available-for-sale securities for the six months ended June 30, 2025, were **$214.98 million**, resulting in gross realized losses of **$14.45 million**[63](index=63&type=chunk) [Note 4 — Loans](index=20&type=section&id=Note%204%20%E2%80%94%20Loans) This note details the loan portfolio composition, credit quality indicators, allowance for credit losses, and loan modifications | Loan Category | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | Change (in thousands) | % Change | | :------------------------------------ | :----------------------------- | :------------------------------- | :-------------------- | :------- | | Loans held for sale | $8,878 | $10,494 | $(1,616) | (15.40)% | | Commercial real estate | $2,428,559 | $2,477,431 | $(48,872) | (1.97)% | | Construction/land/land development | $653,748 | $864,011 | $(210,263) | (24.34)% | | Residential real estate | $1,995,434 | $1,857,589 | $137,845 | 7.42% | | Commercial and industrial | $2,011,178 | $2,002,634 | $8,544 | 0.43% | | Mortgage warehouse lines of credit | $574,748 | $349,081 | $225,667 | 64.64% | | Consumer | $20,779 | $22,967 | $(2,188) | (9.53)% | | Total LHFI | $7,684,446 | $7,573,713 | $110,733 | 1.46% | | Allowance for loan credit losses (ALCL) | $92,426 | $91,060 | $1,366 | 1.50% | - Total LHFI increased by **$110.7 million (1.5%)** at June 30, 2025, driven by mortgage warehouse lines of credit and residential real estate loans, partially offset by decreases in construction/land/land development and commercial real estate loans[293](index=293&type=chunk) - Nonaccrual LHFI increased to **$85.3 million** at June 30, 2025, from **$75.0 million** at December 31, 2024, primarily due to six new loan relationships totaling **$17.3 million**[93](index=93&type=chunk)[306](index=306&type=chunk) - For the six months ended June 30, 2025, the provision for loan credit losses was **$6.39 million**, and net charge-offs were **$5.03 million**[88](index=88&type=chunk)[318](index=318&type=chunk) [Note 5 — Fair Value of Financial Instruments](index=33&type=section&id=Note%205%20%E2%80%94%20Fair%20Value%20of%20Financial%20Instruments) This note explains fair value measurement methodologies, including the three-level hierarchy, for assets and liabilities - The Company utilizes a **three-level hierarchy** for fair value measurements, with **Level 2 inputs** predominantly used for securities available for sale[127](index=127&type=chunk)[128](index=128&type=chunk) - Changes in **Level 3 assets** measured at fair value on a recurring basis for the six months ended June 30, 2025, included a **$50,000 loss** in AOCI for available-for-sale securities and a **$21,000 gain** in earnings for fair value through income securities[130](index=130&type=chunk) - The fair value option for loans held for sale was discontinued in Q1 2025, with all unsold loans funded in 2025 now valued at the **lower of cost or market**[139](index=139&type=chunk) - The net effect of investment income or loss and related compensation expense or benefit from Rabbi Trust assets has **no impact** on the Company's net income or cash balances[141](index=141&type=chunk) [Note 6 — Mortgage Banking](index=39&type=section&id=Note%206%20%E2%80%94%20Mortgage%20Banking) This note details mortgage banking revenue components and activity in Mortgage Servicing Rights (MSR) assets | Metric | 3 Months Ended June 30, 2025 (in thousands) | 3 Months Ended June 30, 2024 (in thousands) | 6 Months Ended June 30, 2025 (in thousands) | 6 Months Ended June 30, 2024 (in thousands) | | :------------------------------------ | :------------------------------------ | :------------------------------------ | :------------------------------------ | :------------------------------------ | | Mortgage banking revenue | $1,369 | $1,878 | $2,284 | $4,276 | | Gain on sale of loans held for sale | $1,503 | $1,337 | $2,463 | $2,301 | | MSR asset valuation adjustments, net | $0 | $0 | $0 | $450 | | Gain on sale of MSR asset | $0 | $0 | $0 | $410 | - The Company sold substantially all of its MSR asset, recording a **$410,000 gain** in the six months ended June 30, 2024, and no longer retains servicing on sold loans[152](index=152&type=chunk) - The reserve for mortgage loan putback expenses totaled **$104,000** at June 30, 2025, and **$103,000** at December 31, 2024[155](index=155&type=chunk) [Note 7 — Borrowings](index=40&type=section&id=Note%207%20%E2%80%94%20Borrowings) This note summarizes the company's borrowed funds, including FHLB advances, repurchase agreements, and subordinated indebtedness | Metric | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | Change (in thousands) | % Change | | :------------------------------------ | :----------------------------- | :------------------------------- | :-------------------- | :------- | | Short-term FHLB advances | $115,000 | $0 | $115,000 | N/A | | Long-term FHLB advances | $6,057 | $6,198 | $(141) | (2.27)% | | Overnight repurchase agreements | $6,786 | $6,262 | $524 | 8.37% | | Total FHLB advances and other borrowings | $127,843 | $12,460 | $115,383 | 926.03% | | Subordinated indebtedness, net | $89,657 | $159,943 | $(70,286) | (43.94)% | - **Origin Bank** redeemed **$70.0 million** in 4.25% fixed-to-floating rate subordinated notes on February 15, 2025, as part of its Optimize Origin initiative[156](index=156&type=chunk)[335](index=335&type=chunk) - The Company strategically manages liquidity by funding mortgage warehouse lines of credit with short-term FHLB advances, avoiding more expensive brokered deposits[334](index=334&type=chunk) [Note 8 — Derivative Financial Instruments](index=41&type=section&id=Note%208%20%E2%80%94%20Derivative%20Financial%20Instruments) This note describes the company's use of derivative financial instruments for risk management, including cash flow and fair value hedges - The Company uses interest rate swaps as **fair value hedges** to mitigate changes in the fair value of fixed-rate available-for-sale securities due to benchmark interest rate fluctuations[161](index=161&type=chunk) - During Q4 2024, the Company terminated cash flow swap agreements, locking in an after-tax gain of **$537,000** to be accreted into earnings[160](index=160&type=chunk) - Notional amounts of derivatives not designated as hedging instruments totaled **$981.3 million** at June 30, 2025, up from **$757.0 million** at December 31, 2024[172](index=172&type=chunk) - For the three months ended June 30, 2025, fair value hedging instruments resulted in a **$700,000 gain** in interest income on available-for-sale securities, offset by a **$700,000 loss** on interest rate swaps[176](index=176&type=chunk) [Note 9 — Stock and Incentive Compensation Plans](index=43&type=section&id=Note%209%20%E2%80%94%20Stock%20and%20Incentive%20Compensation%20Plans) This note details the company's stock and incentive compensation plans, including award activity for RSAs, RSUs, PSUs, and stock options - The **Omnibus Plan**, approved in April 2024, allows for the issuance of **675,000 shares**, with **330,259 shares** available for grant at June 30, 2025[179](index=179&type=chunk) - The **Employee Stock Purchase Plan (ESPP)** allows employees to purchase common stock at a **15% discount**, with **58,568 shares** purchased during the six months ended June 30, 2025[182](index=182&type=chunk)[183](index=183&type=chunk) - Total unrecognized compensation cost related to nonvested RSA, RSU, and PSU shares was **$439,000**, **$11.1 million**, and **$5.0 million**, respectively, at June 30, 2025[188](index=188&type=chunk) - Stock-based compensation expense charged to income for the six months ended June 30, 2025, was **$3.88 million**, up from **$3.77 million** in the prior year[192](index=192&type=chunk) [Note 10 — Accumulated Other Comprehensive (Loss) Income](index=47&type=section&id=Note%2010%20%E2%80%94%20Accumulated%20Other%20Comprehensive%20(Loss)%20Income) This note summarizes the components of Accumulated Other Comprehensive (Loss) Income (AOCI), primarily unrealized gains and losses | Metric | January 1, 2025 (in thousands) | June 30, 2025 (in thousands) | Change (in thousands) | | :------------------------------------ | :----------------------------- | :--------------------------- | :-------------------- | | Unrealized Loss on AFS Securities | $(106,535) | $(73,957) | $32,578 | | Unrealized Gain on Cash Flow Hedges | $506 | $396 | $(110) | | Total Accumulated Other Comprehensive Loss | $(106,029) | $(73,561) | $32,468 | - AOCI improved by **$32.47 million** during the six months ended June 30, 2025, primarily due to a **$32.58 million** reduction in unrealized losses on available-for-sale securities[198](index=198&type=chunk) [Note 11 — Capital and Regulatory Matters](index=47&type=section&id=Note%2011%20%E2%80%94%20Capital%20and%20Regulatory%20Matters) This note discusses the company's and the bank's compliance with regulatory capital requirements and the stock repurchase program - Both **Origin Bancorp, Inc.** and **Origin Bank** met all capital adequacy requirements and were categorized as 'well capitalized' at June 30, 2025, and December 31, 2024[201](index=201&type=chunk)[202](index=202&type=chunk)[350](index=350&type=chunk) | Ratio | Origin Bancorp, Inc. (Actual) | Origin Bank (Actual) | Minimum Required (Basel III) | Well Capitalized (Prompt Corrective Action) | | :------------------------------------ | :---------------------------- | :----------------------- | :--------------------------- | :------------------------------------------ | | Common Equity Tier 1 to Risk-Weighted Assets | 13.47% | 13.13% | 7.00% | 6.50% | | Tier 1 Capital to Risk-Weighted Assets | 13.67% | 13.13% | 8.50% | 8.00% | | Total Capital to Risk-Weighted Assets | 15.68% | 14.27% | 10.50% | 10.00% | | Leverage Ratio | 11.70% | 11.24% | 4.00% | 5.00% | - The Company repurchased **136,399 shares** of common stock for **$4.4 million** during Q2 2025, and a new **$50.0 million** stock repurchase program was approved in July 2025[207](index=207&type=chunk)[351](index=351&type=chunk) [Note 12 — Commitments and Contingencies](index=49&type=section&id=Note%2012%20%E2%80%94%20Commitments%20and%20Contingencies) This note discloses credit-related commitments and loss contingencies, including a specific issue involving questioned activity by a former banker | Commitment Type | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | Change (in thousands) | % Change | | :------------------------------------ | :----------------------------- | :------------------------------- | :-------------------- | :------- | | Commitments to extend credit | $1,889,215 | $1,671,603 | $217,612 | 13.02% | | Standby letters of credit | $217,844 | $234,260 | $(16,416) | (7.01)% | | Total off-balance sheet commitments | $2,107,059 | $1,905,863 | $201,196 | 10.56% | - The Company has a contingency reserve of **$2.8 million** at June 30, 2025, related to questioned activity by a former banker, which led to a **$4.1 million** provision for loan credit losses in 2024[216](index=216&type=chunk) - Management believes any ultimate loss from the questioned activity will not be material to the financial position, but acknowledges a reasonable possibility of additional unestimable loss[217](index=217&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=51&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section analyzes the company's financial condition, results of operations, and key performance drivers for the periods presented [General](index=51&type=section&id=General) This subsection reaffirms Origin Bancorp, Inc. as a financial holding company and introduces key financial metrics - The Company's primary revenue sources are **interest earned on loans and investments**, and **service charges and fees** on deposit accounts[223](index=223&type=chunk) - **Net interest margin (NIM)** is net interest income divided by average interest-earning assets, and **net interest spread** is the average yield on interest-earning assets minus the average rate on interest-bearing liabilities[224](index=224&type=chunk) [2025 Second Quarter Highlights](index=52&type=section&id=2025%20Second%20Quarter%20Highlights) This subsection summarizes key financial and operational achievements for the second quarter of 2025 - Net interest income increased by **$8.2 million (11.2%)** to **$82.1 million** for Q2 2025 compared to the prior year[230](index=230&type=chunk) - Fully tax equivalent net interest margin (**NIM-FTE**) increased **44 basis points** for Q2 2025, driven by a **73 basis point reduction** in rates paid on interest-bearing liabilities[230](index=230&type=chunk) - A bond portfolio optimization strategy resulted in a **$14.4 million loss** on securities sales but is estimated to increase annual net interest income by **$5.6 million** and contribute **six basis points** to NIM-FTE over twelve months[230](index=230&type=chunk)[234](index=234&type=chunk) - Total loans held for investment (**LHFI**) increased by **$110.7 million (1.5%)** to **$7.68 billion** at June 30, 2025, compared to December 31, 2024[230](index=230&type=chunk) - Book value per common share increased by **$1.91 (5.2%)** to **$38.62** at June 30, 2025, compared to December 31, 2024[230](index=230&type=chunk) [Results of Operations](index=52&type=section&id=Results%20of%20Operations) This section analyzes the company's net income, net interest income, provision for credit losses, noninterest income, and noninterest expense [Net Interest Income and Net Interest Margin (Three Months)](index=52&type=section&id=Net%20Interest%20Income%20and%20Net%20Interest%20Margin%20(Three%20Months)) This subsection analyzes changes in net interest income and net interest margin for the three months ended June 30, 2025 - Net interest income increased by **$8.2 million (11.2%)** to **$82.1 million** for Q2 2025, primarily due to a **$15.4 million decrease** in interest expense, partially offset by a **$7.2 million decrease** in total interest income[228](index=228&type=chunk) - Interest expense on interest-bearing deposits decreased by **$15.3 million**, with **$10.6 million** from lower interest rates (average rate declined **75 bps to 3.20%**) and **$4.7 million** from lower average balances[229](index=229&type=chunk) - Interest income earned on LHFI decreased by **$8.6 million**, with **$4.8 million** due to lower average LHFI balances and **$3.8 million** due to lower yields[231](index=231&type=chunk) - The fully tax equivalent net interest margin (**NIM-FTE**) increased **44 basis points** to **3.61%** for Q2 2025, driven by a **73-basis-point decline** in the average cost of total interest-bearing liabilities, exceeding the **17-basis-point decline** in yield on interest-earning assets[233](index=233&type=chunk) [Rate/Volume Analysis (Three Months)](index=55&type=section&id=Rate%2FVolume%20Analysis%20(Three%20Months)) This subsection breaks down changes in interest income and expense, attributing them to volume or rate changes for the three months ended June 30, 2025 | Category | Volume Change (in thousands) | Yield/Rate Change (in thousands) | Total Change (in thousands) | | :------------------------------------------------- | :--------------------------- | :------------------------------- | :-------------------------- | | Total interest-earning assets | $(4,470) | $(2,687) | $(7,157) | | Total interest-bearing liabilities | $(4,734) | $(10,669) | $(15,403) | | Net interest income | $264 | $7,982 | $8,246 | [Provision for Credit Losses (Three Months)](index=55&type=section&id=Provision%20for%20Credit%20Losses%20(Three%20Months)) This subsection discusses the decrease in total provision expense for the three months ended June 30, 2025, and changes in net charge-offs - Total provision expense decreased by **$2.4 million** to **$2.9 million** for the three months ended June 30, 2025, primarily due to a **$2.7 million decrease** in loan credit loss provision[242](index=242&type=chunk) - Net charge-offs decreased by **$646,000** to **$2.3 million** for the three months ended June 30, 2025[243](index=243&type=chunk) - The allowance for loan credit losses (**ALCL**) to nonperforming LHFI was **108.33%** at June 30, 2025, compared to **133.05%** at June 30, 2024, primarily driven by a **$9.5 million increase** in nonperforming LHFI[243](index=243&type=chunk) [Noninterest Income (Three Months)](index=56&type=section&id=Noninterest%20Income%20(Three%20Months)) This subsection explains the significant decrease in noninterest income for the three months ended June 30, 2025 - Total noninterest income decreased by **$21.1 million (93.9%)** to **$1.4 million** for the three months ended June 30, 2025[246](index=246&type=chunk) - This decrease was primarily due to a **$14.4 million loss** on sales of securities, a **$5.2 million decrease** in fair value of equity investments, and a **$2.0 million decrease** in limited partnership investment income[246](index=246&type=chunk)[247](index=247&type=chunk)[248](index=248&type=chunk)[249](index=249&type=chunk) - Swap fee income increased by **$1.4 million**, driven by an attractive interest rate environment and increased focus on customer swaps as part of the Optimize Origin initiative[251](index=251&type=chunk) [Noninterest Expense (Three Months)](index=57&type=section&id=Noninterest%20Expense%20(Three%20Months)) This subsection details the decrease in noninterest expense for the three months ended June 30, 2025 - Total noninterest expense decreased by **$2.4 million (3.7%)** to **$62.0 million** for the three months ended June 30, 2025[252](index=252&type=chunk) - Key drivers of the decrease include a **$1.5 million reduction** in other expense, a **$497,000 decrease** in regulatory assessments, and a **$408,000 decrease** in loan-related expenses[252](index=252&type=chunk)[253](index=253&type=chunk)[254](index=254&type=chunk)[255](index=255&type=chunk) [Comparison of Results of Operations (Six Months)](index=57&type=section&id=Comparison%20of%20Results%20of%20Operations%20(Six%20Months)) This subsection provides an overview of the company's net income performance for the six months ended June 30, 2025 - Net income decreased by **$6.6 million (15.0%)** to **$37.1 million** for the six months ended June 30, 2025[256](index=256&type=chunk) - Diluted EPS decreased to **$1.18 per share** for the six months ended June 30, 2025, from **$1.40 per share** in the prior year[256](index=256&type=chunk) [Net Interest Income and Net Interest Margin (Six Months)](index=57&type=section&id=Net%20Interest%20Income%20and%20Net%20Interest%20Margin%20(Six%20Months)) This subsection analyzes changes in net interest income and net interest margin for the six months ended June 30, 2025 - Net interest income increased by **$13.4 million (9.1%)** to **$160.6 million** for the six months ended June 30, 2025[257](index=257&type=chunk) - This increase was primarily driven by a **$26.4 million decrease** in interest expense on interest-bearing deposits and increases in interest income from investment securities (**$2.9 million**) and interest-earning deposits in banks (**$2.3 million**)[257](index=257&type=chunk)[258](index=258&type=chunk)[259](index=259&type=chunk)[260](index=260&type=chunk) - Interest income earned on LHFI decreased by **$18.6 million**, due to lower average balances (**$10.6 million**) and lower market interest rates (**$8.1 million**)[261](index=261&type=chunk) - The fully tax equivalent net interest margin (**NIM-FTE**) increased **34 basis points** to **3.52%** for the six months ended June 30, 2025, as the **66-basis-point decline** in average rate on interest-bearing liabilities exceeded the **18-basis-point decline** in yield on interest-earning assets[262](index=262&type=chunk) [Rate/Volume Analysis (Six Months)](index=60&type=section&id=Rate%2FVolume%20Analysis%20(Six%20Months)) This subsection presents a rate/volume analysis for the six months ended June 30, 2025, showing the impact on interest income and expense | Category | Volume Change (in thousands) | Yield/Rate Change (in thousands) | Total Change (in thousands) | | :------------------------------------------------- | :--------------------------- | :------------------------------- | :-------------------------- | | Total interest-earning assets | $(6,599) | $(6,716) | $(13,315) | | Total interest-bearing liabilities | $(7,097) | $(19,600) | $(26,697) | | Net interest income | $498 | $12,884 | $13,382 | [Provision for Credit Losses (Six Months)](index=60&type=section&id=Provision%20for%20Credit%20Losses%20(Six%20Months)) This subsection discusses the decrease in provision expense for the six months ended June 30, 2025, and changes in net charge-offs - Total provision expense decreased by **$1.9 million** to **$6.3 million** for the six months ended June 30, 2025, driven by a **$3.1 million decrease** in loan credit loss provision, partially offset by a **$1.2 million increase** in the provision for off-balance sheet commitments[269](index=269&type=chunk) - Net charge-offs decreased by **$500,000** to **$5.0 million** for the six months ended June 30, 2025, primarily due to a **$1.2 million decline** in net charge-offs in the commercial and industrial loans portfolio[270](index=270&type=chunk) [Noninterest Income (Six Months)](index=61&type=section&id=Noninterest%20Income%20(Six%20Months)) This subsection explains the significant decrease in noninterest income for the six months ended June 30, 2025 - Total noninterest income decreased by **$22.8 million (57.3%)** to **$17.0 million** for the six months ended June 30, 2025[273](index=273&type=chunk) - Major contributors to the decrease include a **$14.0 million increase** in loss on sales of securities, a **$5.2 million decrease** in fair value of equity investments, a **$3.8 million decrease** in limited partnership investment gain, and a **$2.0 million decrease** in mortgage banking revenue[274](index=274&type=chunk)[275](index=275&type=chunk)[276](index=276&type=chunk)[277](index=277&type=chunk) - Swap fee income increased by **$1.9 million**, driven by an attractive interest rate environment and increased focus on customer swaps as part of the Optimize Origin initiative[278](index=278&type=chunk) [Noninterest Expense (Six Months)](index=62&type=section&id=Noninterest%20Expense%20(Six%20Months)) This subsection details the slight increase in noninterest expense for the six months ended June 30, 2025 - Total noninterest expense increased by **$956,000 (0.8%)** to **$124.1 million** for the six months ended June 30, 2025[281](index=281&type=chunk) - Increases were seen in salaries and employee benefits (**$2.1 million**), occupancy and equipment (**$2.1 million**), and office and operations (**$735,000**)[282](index=282&type=chunk)[283](index=283&type=chunk)[284](index=284&type=chunk) - Decreases were seen in other expense (**$1.2 million**), regulatory assessments (**$839,000**), intangible asset amortization (**$745,000**), and loan-related expenses (**$714,000**)[285](index=285&type=chunk)[286](index=286&type=chunk)[287](index=287&type=chunk) [Comparison of Financial Condition at June 30, 2025, and December 31, 2024](index=63&type=section&id=Comparison%20of%20Financial%20Condition) This section analyzes changes in the balance sheet components, including assets, liabilities, and equity, between June 30, 2025, and December 31, 2024 [General (Financial Condition)](index=63&type=section&id=General%20(Financial%20Condition)) This subsection provides an overview of changes in total assets, cash, loans, securities, liabilities, deposits, and borrowings - Total assets remained stable at **$9.68 billion** at June 30, 2025[288](index=288&type=chunk) - Cash and cash equivalents decreased by **$136.1 million (29.0%)** to **$334.1 million**[288](index=288&type=chunk) - Total liabilities decreased by **$61.1 million (0.7%)** to **$8.47 billion**, while total deposits decreased by **$100.1 million (1.2%)** to **$8.12 billion**[289](index=289&type=chunk) - Subordinated debentures decreased by **$70.3 million (43.9%)** due to redemptions, while FHLB advances and other borrowings increased by **$115.4 million**[289](index=289&type=chunk) [Loan Portfolio](index=63&type=section&id=Loan%20Portfolio) This subsection details the composition and changes within the loan portfolio, emphasizing growth and decreases in specific categories - Total loans held for investment (**LHFI**) increased by **$110.7 million (1.5%)** to **$7.68 billion** at June 30, 2025[293](index=293&type=chunk) - Growth was driven by mortgage warehouse lines of credit (up **$225.7 million or 64.6%**) and residential real estate loans (up **$137.8 million or 7.4%**)[293](index=293&type=chunk) - Decreases were seen in construction/land/land development loans (down **$210.3 million or 24.3%**) and commercial real estate loans (down **$48.9 million or 2.0%**)[293](index=293&type=chunk) [Loan Portfolio Maturity Analysis](index=64&type=section&id=Loan%20Portfolio%20Maturity%20Analysis) This subsection presents the maturity distribution of the LHFI portfolio at June 30, 2025, distinguishing between fixed and variable interest rate loans | Maturity | Total LHFI (in thousands) | Fixed Rates (in thousands) | Variable Rates (in thousands) | | :------------------------------------ | :-------------------------- | :------------------------- | :-------------------------- | | One year or less | $2,488,974 | $569,865 | $1,919,109 | | After one year through five years | $3,826,267 | $1,923,590 | $1,902,677 | | After five years through fifteen years | $472,671 | $307,198 | $165,473 | | After fifteen years | $896,534 | $207,681 | $688,853 | | Total | $7,684,446 | $3,008,334 | $4,676,112 | [Nonperforming Assets](index=65&type=section&id=Nonperforming%20Assets) This subsection defines nonperforming assets and details the increase in nonperforming LHFI, attributing changes to specific loan relationships - Total nonperforming LHFI increased by **$10.3 million** to **$85.3 million** at June 30, 2025, compared to **$75.0 million** at December 31, 2024[304](index=304&type=chunk)[306](index=306&type=chunk) - The ratio of nonperforming LHFI to total LHFI increased to **1.11%** at June 30, 2025, from **0.99%** at December 31, 2024[304](index=304&type=chunk) - The increase in nonperforming loans was primarily driven by **six loan relationships** totaling **$17.3 million**, with commercial real estate loans accounting for **$8.3 million** of this increase[306](index=306&type=chunk) - Total nonperforming assets increased to **$87.3 million** at June 30, 2025, from **$78.6 million** at December 31, 2024[304](index=304&type=chunk) [Potential Problem Loans](index=66&type=section&id=Potential%20Problem%20Loans) This subsection explains the company's internal loan risk rating system used to manage credit quality and assess default risk - The Company classifies loans using internal risk grades: **pass, special mention, substandard, doubtful, or loss**, continually evaluated to reflect assessed risk[307](index=307&type=chunk)[67](index=67&type=chunk) - Loans rated 'special mention' exhibit potential weaknesses, while 'substandard' loans have well-defined weaknesses jeopardizing debt repayment[307](index=307&type=chunk) - 'Doubtful' loans have questionable full collection with a high probability of loss, and 'loss' loans are charged-off with no expectation of recovery[308](index=308&type=chunk) [Allowance for Loan Credit Losses](index=66&type=section&id=Allowance%20for%20Loan%20Credit%20Losses) This subsection describes the methodology for calculating the Allowance for Loan Credit Losses (ALCL) and its relationship to charge-offs - The **ALCL** represents estimated losses for loans accounted for on an amortized cost basis, calculated using a probability of default, loss given default methodology applied to loan pools[309](index=309&type=chunk) - The **ALCL to nonperforming LHFI** decreased to **108.33%** at June 30, 2025, compared to **121.41%** at December 31, 2024, primarily due to a **$10.3 million increase** in the Company's nonperforming LHFI[319](index=319&type=chunk) - Net charge-offs (annualized) as a percentage of average LHFI decreased to **0.13%** for the six months ended June 30, 2025, from **0.18%** for the year ended December 31, 2024[318](index=318&type=chunk) [Securities](index=69&type=section&id=Securities) This subsection discusses the increase in the securities portfolio, driven by a bond portfolio optimization strategy - The securities portfolio totaled **$1.14 billion** at June 30, 2025, representing an increase of **$23.9 million (2.1%)** from December 31, 2024[320](index=320&type=chunk) - A bond portfolio optimization strategy involved selling **$215.8 million** of lower-yielding available-for-sale securities and purchasing **$201.8 million** of higher-yielding ones, resulting in a **$14.4 million loss**[321](index=321&type=chunk) - The weighted average duration of the securities portfolio increased to **4.52 years** as of June 30, 2025, compared to **4.46 years** at December 31, 2024[324](index=324&type=chunk) [Deposits](index=69&type=section&id=Deposits) This subsection describes the deposit mix and changes, noting a decrease in total deposits primarily due to interest-bearing demand and time deposits - Total deposits decreased by **$100.1 million (1.2%)** to **$8.12 billion** at June 30, 2025, compared to December 31, 2024[326](index=326&type=chunk) - This decrease was driven by decreases of **$226.1 million** in interest-bearing demand deposits and **$135.4 million** in time deposits, partially offset by a **$371.5 million increase** in money market deposits[326](index=326&type=chunk) - The average rate paid on interest-bearing deposits decreased to **3.21%** for the six months ended June 30, 2025, from **3.90%** for the six months ended June 30, 2024, influenced by recent Federal Reserve rate cuts[329](index=329&type=chunk)[330](index=330&type=chunk) - Estimated total uninsured deposits were **$3.73 billion** at June 30, 2025, including **$830.2 million** in public fund deposits collateralized by pledged assets[333](index=333&type=chunk) [Borrowings](index=71&type=section&id=Borrowings) This subsection summarizes the company's borrowing activities, highlighting increased short-term FHLB advances and decreased subordinated debentures - Total FHLB advances and other borrowings increased by **$115.4 million** to **$127.8 million** at June 30, 2025, primarily due to **$115.0 million** in short-term FHLB advances[334](index=334&type=chunk) - Subordinated debentures decreased by **$70.3 million (43.9%)** to **$89.7 million**, following the redemption of **$70.0 million** in debentures as part of the Optimize Origin initiative[335](index=335&type=chunk) - The Company had an additional borrowing capacity of **$1.79 billion** from the FHLB at June 30, 2025[336](index=336&type=chunk) [Liquidity and Capital Resources](index=71&type=section&id=Liquidity%20and%20Capital%20Resources) This subsection provides an overview of the company's liquidity management, sources of funds, and off-balance sheet commitments - Management oversees the liquidity position to ensure adequate cash and liquid assets support operations and satisfy financial obligations, monitoring liquidity and non-core dependency ratios[337](index=337&type=chunk) - Key liquidity sources include **core deposits, investment securities, cash and cash equivalents, loan repayments, federal funds lines of credit**, and **advances from the FHLB**[341](index=341&type=chunk) - At June 30, 2025, the Company had the ability to borrow **$1.35 billion** from the discount window at the FRBD, with no outstanding borrowings[346](index=346&type=chunk) [Stockholders' Equity](index=73&type=section&id=Stockholders'%20Equity) This subsection presents the changes in total stockholders' equity, including net income, other comprehensive income, dividends, and stock repurchases | Metric | January 1, 2025 (in thousands) | June 30, 2025 (in thousands) | Change (in thousands) | % Change | | :----------------------------- | :----------------------------- | :--------------------------- | :-------------------- | :------- | | Total Stockholders' Equity | $1,145,245 | $1,205,769 | $60,524 | 5.28% | | Net income | N/A | $37,058 | N/A | N/A | | Other comprehensive income, net of tax | N/A | $32,468 | N/A | N/A | | Dividends declared - common stock | N/A | $(9,522) | N/A | N/A | | Repurchase of common stock | N/A | $(4,382) | N/A | N/A | [Regulatory Capital Requirements](index=73&type=section&id=Regulatory%20Capital%20Requirements) This subsection reaffirms the company's and the bank's compliance with regulatory capital requirements and 'well capitalized' status - Both **Origin Bancorp, Inc.** and **Origin Bank** were in compliance with all applicable regulatory capital requirements and classified as 'well capitalized' at June 30, 2025, and December 31, 2024[350](index=350&type=chunk) - The Company repurchased **136,399 shares** of common stock for **$4.4 million** during Q2 2025, and a new **$50.0 million** stock repurchase program was approved in July 2025[351](index=351&type=chunk) [Critical Accounting Policies and Estimates](index=74&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) This subsection refers to the company's 2024 Form 10-K for detailed information on critical accounting policies and estimates - Critical accounting estimates involve significant estimation uncertainty and are reasonably likely to materially impact financial condition or results of operations[352](index=352&type=chunk) - Detailed information on critical accounting policies and estimates is available in the Company's **2024 Form 10-K**[353](index=353&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=75&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) This section discusses the company's primary market risk, interest rate volatility, and its management through financial policies and models [Interest Rate Sensitivity and Market Risk](index=75&type=section&id=Interest%20Rate%20Sensitivity%20and%20Market%20Risk) This subsection focuses on how the company manages its exposure to interest rate risk through balance sheet structuring and derivative instruments - The primary component of market risk is **interest rate volatility**, managed by structuring the consolidated balance sheet and utilizing derivative financial instruments[355](index=355&type=chunk)[357](index=357&type=chunk) - The **Asset Liability Management Committee (ALCO)** uses interest rate risk simulation models and shock analyses to test the interest rate sensitivity of net interest income and fair value of equity[359](index=359&type=chunk)[360](index=360&type=chunk) - Internal policy specifies that estimated net interest income at risk for the subsequent one-year period should not decline by more than **10.0%** for a **100-basis point shift** in the yield curve[361](index=361&type=chunk) | Change in Interest Rates (basis points) | % Change in Net Interest Income | % Change in Fair Value of Equity | | :------------------------------------ | :------------------------------ | :------------------------------- | | +400 | 12.7% | (9.7)% | | +300 | 9.7% | (6.9)% | | +200 | 6.7% | (4.1)% | | +100 | 3.5% | (1.8)% | | Base | N/A | N/A | | -100 | (4.0)% | 1.3% | | -200 | (6.2)% | 2.3% | | -300 | (7.7)% | 3.3% | | -400 | (8.1)% | 4.6% | [Impact of Inflation](index=76&type=section&id=Impact%20of%20Inflation) This subsection explains that inflation primarily affects financial institutions through increased operating costs and indirectly through its influence on interest rates - Inflation affects financial institutions by increasing the cost of goods and services, salaries, benefits, and occupancy expenses[367](index=367&type=chunk) - Changes in interest rates have a more significant impact on a financial institution's performance than general inflation, though interest rates are influenced by inflation[367](index=367&type=chunk) [Item 4. Controls and Procedures](index=77&type=section&id=Item%204.%20Controls%20and%20Procedures) This section reports on the effectiveness of the company's disclosure controls and procedures and internal control over financial reporting - The Chief Executive Officer and Chief Financial Officer concluded that the Company's disclosure controls and procedures were **effective** as of June 30, 2025[368](index=368&type=chunk) - No material changes in internal control over financial reporting occurred during the three-month period ended June 30, 2025[369](index=369&type=chunk) - The effectiveness of controls and procedures is subject to inherent limitations, including cost, judgments, human error, and fraud risk, providing only reasonable assurance[370](index=370&type=chunk) [PART II - OTHER INFORMATION](index=78&type=section&id=PART%20II%20-%20OTHER%20INFORMATION) This part contains other information not included in the financial statements, such as legal proceedings, risk factors, and equity sales [Item 1. Legal Proceedings](index=78&type=section&id=Item%201.%20Legal%20Proceedings) This section refers to Note 12 of the condensed financial statements for information regarding legal proceedings and loss contingencies - Additional information regarding legal proceedings and loss contingencies is provided in **Note 12 — Commitments and Contingencies** in Part I, Item 1 of this report[372](index=372&type=chunk) [Item 1A. Risk Factors](index=78&type=section&id=Item%201A.%20Risk%20Factors) This section states that there were no material changes to the risk factors previously disclosed in the company's 2024 Form 10-K - There were no material changes to the risk factors previously disclosed in the Company's **2024 Form 10-K** during the period covered by this report[373](index=373&type=chunk) [Item 2. Unregistered Sales of Equity Securities, Use of Proceeds and Issuer Purchases of Equity Securities](index=78&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%2C%20Use%20of%20Proceeds%20and%20Issuer%20Purchases%20of%20Equity%20Securities) This section details the company's stock repurchase program, including shares repurchased during Q2 2025 and a new program approval - The Company repurchased a total of **136,399 shares** of its common stock during Q2 2025 at an average price of **$32.13 per share**, under its July 2022 stock repurchase program[375](index=375&type=chunk)[376](index=376&type=chunk) - In July 2025, the Board approved a new stock repurchase program authorizing the purchase of up to **$50.0 million** of common stock over the next three years, replacing the expired July 2022 plan[375](index=375&type=chunk) | Period | Total Number of Shares Purchased | Average Price Paid per Share | Approximate Dollar Value of Shares That May Yet Be Purchased Under the Plan at the End of the Period (in thousands) | | :----------------------------- | :----------------------------- | :--------------------------- | :---------------------------------------------------------------------------------------------------------------- | | April 1, 2025 - April 30, 2025 | 90,636 | $32.08 | $47,092 | | May 1, 2025 - May 31, 2025 | 45,763 | $32.23 | $45,618 | | June 1, 2025 - June 30, 2025 | — | — | $45,618 | | Total | 136,399 | $32.13 | $45,618 | [Item 3. Defaults Upon Senior Securities](index=78&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) This section states that this item is not applicable to the company for the reporting period - This item is not applicable[377](index=377&type=chunk) [Item 4. Mine Safety Disclosures](index=78&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This section states that this item is not applicable to the company for the reporting period - This item is not applicable[378](index=378&type=chunk) [Item 5. Other Information](index=78&type=section&id=Item%205.%20Other%20Information) This section reports no directors or executive officers adopted, terminated, or modified Rule 10b5-1 trading arrangements - None of the Company's directors or executive officers adopted, terminated, or modified a **Rule 10b5-1 trading arrangement** or a non-Rule 10b5-1 trading arrangement during the three months ended June 30, 2025[382](index=382&type=chunk) [Item 6. Exhibits](index=79&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed as part of the Form 10-Q, including certifications and Inline XBRL financial information - Exhibits filed include certifications by the Chief Executive Officer and Chief Financial Officer (**31.1, 31.2, 32.1, 32.2**) and financial information formatted in **Inline XBRL (101, 104)**[383](index=383&type=chunk) [SIGNATURES](index=80&type=section&id=SIGNATURE%20PAGE) This section contains the official signatures of the company's Chairman, President, CEO, and CFO, certifying the report - The report was signed on **August 6, 2025**, by **Drake Mills**, Chairman, President and Chief Executive Officer, and **William J. Wallace, IV**, Senior Executive Officer and Chief Financial Officer[387](index=387&type=chunk)

Financial Performance - Net income for the second quarter of 2025 was $14.6 million, or $0.47 diluted EPS, down from $22.4 million, or $0.71 diluted EPS, in the previous quarter[1] - Noninterest income decreased to $1.4 million, a decline of $14.2 million or 91.2% from the linked quarter, primarily due to a $14.4 million loss on sales of securities[19] - Net income for Q2 2025 was $14,647 thousand, down 34.5% from $22,411 thousand in Q1 2025[41] - Net income for the quarter was $14,647,000, a decrease from $22,411,000 in the previous quarter, representing a decline of 34.8%[46] - The total notable items for the six months ended June 30, 2025, resulted in a loss of $17,819,000, impacting EPS by $0.45[58] - The company experienced a loss on sales of securities amounting to $14,448,000 for the six months ended June 30, 2025, which impacted EPS by $0.36[58] - PTPP earnings for Q2 2025 were $21,521 thousand, down from $31,993 thousand in Q1 2025, reflecting a decline of 32.8%[41] - Annualized PTPP earnings for the six months ended June 30, 2025, were $107,915,000, compared to $128,378,000 for the same period in 2024[66] Loan and Asset Management - Total loans held for investment (LHFI) reached $7.68 billion, reflecting an increase of $98.9 million, or 1.3%, compared to the previous quarter[9] - Total loans held for investment (LHFI) increased by $98.9 million, or 1.3%, to $7.68 billion compared to the previous quarter, but decreased by $274.7 million, or 3.5%, year-over-year[28] - Total assets as of June 30, 2025, were $9,678,158 thousand, a slight decrease from $9,750,372 thousand at the end of Q1 2025[41] - Total loans held for investment (LHFI) increased to $7,684,446 thousand as of June 30, 2025, up from $7,585,526 thousand in the previous quarter, representing a growth of 1.4%[50] - The total interest-earning assets decreased to $9,193,833 thousand from $9,282,898 thousand in the previous quarter, a decline of 1.0%[54] Interest Income and Margin - Net interest income increased by $3.7 million, or 4.7%, to $82.1 million, the highest level in nine quarters[3] - The net interest margin (NIM-FTE) expanded by 17 basis points to 3.61% for the quarter, driven by an increase in yield on interest-earning assets[9] - Net interest income for Q2 2025 was $82,136 thousand, an increase of 3.4% from $78,459 thousand in Q1 2025[41] - Net interest income after provision for credit losses was $79,274,000 for the quarter, compared to $75,015,000 in the prior quarter, reflecting a 4.99% increase[46] - The net interest margin (NIM) improved to 3.58% for the three months ended June 30, 2025, compared to 3.43% in the prior quarter, indicating enhanced profitability from interest-earning assets[54] Deposits and Borrowings - Total deposits fell by $215.4 million, or 2.6%, to $8.12 billion compared to the previous quarter, with a notable decline in interest-bearing demand deposits[28] - Total deposits decreased to $8,123,036 thousand in Q2 2025 from $8,338,412 thousand in Q1 2025, representing a decline of 2.6%[41] - FHLB advances and other borrowings increased to $127.8 million, up $115.4 million from $12.5 million in the previous quarter, primarily to meet liquidity needs[34] Noninterest Expense and Efficiency - Noninterest expense was $62.0 million, a slight decrease of $85,000 or 0.1% from the linked quarter, driven by a $1.4 million reduction in occupancy and equipment costs[23] - The efficiency ratio for Q2 2025 was 74.23%, up from 65.99% in Q1 2025, indicating increased operational costs[41] - Total noninterest expense for the three months ended June 30, 2025, was $62,068,000, slightly up from $61,983,000 in the prior quarter[63] - Core efficiency ratio (non-GAAP) improved to 73.77 from 65.33 in the prior quarter[63] Credit Quality and Losses - The allowance for loan credit losses (ALCL) was $92.426 million, with a slight increase of $415,000 compared to the previous quarter[15] - Nonperforming LHFI increased by $3.9 million, with the percentage of nonperforming LHFI to total LHFI rising to 1.11%[17] - The provision for loan credit losses was $2,715 thousand for Q2 2025, compared to $3,679 thousand in Q1 2025, indicating a reduction in expected credit losses[50] - The net charge-offs to total average LHFI ratio was 0.12% for Q2 2025, down from 0.15% in Q1 2025, indicating improved credit performance[52] - The allowance for loan credit losses (ALCL) to total LHFI ratio was 1.20% as of June 30, 2025, consistent with the previous quarter, reflecting stable credit quality management[52] Stockholder Equity and Valuation - Book value per common share increased by $0.85, or 2.3%, to $38.62 compared to the previous quarter[9] - Stockholders' equity increased to $1,205,769,000 from $1,180,177,000, showing a growth of 2.4%[48] - Tangible book value per common share (non-GAAP) increased to $33.33 from $32.43 in the previous quarter[63] - Total average common stockholders' equity increased to $1,178,605,000 from $1,073,487,000 year-over-year[66]

Financial Performance - Net income for the three months ended March 31, 2025, decreased by $221,000, or 1.0%, to $22.4 million compared to $22.6 million for the same period in 2024[197]. - Noninterest income decreased by $1.7 million, or 9.6%, to $15.6 million for the three months ended March 31, 2025, primarily due to a decrease in limited partnership investment (loss) income and mortgage banking revenue[215]. - Net charge-offs for the three months ended March 31, 2025, were $2.73 million, compared to $2.58 million for the same period in 2024[260]. Interest Income and Expenses - Net interest income increased by $5.1 million, or 7.0%, to $78.5 million for the three months ended March 31, 2025, primarily due to an $11.3 million decrease in interest expense[198]. - The average rate on interest-bearing deposits declined by 62 basis points to 3.23% for the three months ended March 31, 2025, from 3.85% for the same period in 2024[199]. - The fully tax equivalent net interest margin (NIM-FTE) increased by 25 basis points to 3.44% for the three months ended March 31, 2025, compared to 3.19% for the same period in 2024[203]. Loans and Deposits - Total loans held for investment (LHFI) were $7.59 billion at March 31, 2025, reflecting an increase of $11.8 million, or 0.2%, compared to December 31, 2024[201]. - Total deposits increased by $115.3 million, or 1.4%, to $8.34 billion at March 31, 2025, compared to December 31, 2024[201]. - The loan portfolio held for investment increased by $11.8 million, or 0.2%, to $7.59 billion at March 31, 2025, with significant growth in residential real estate loans and mortgage warehouse lines of credit[232]. Asset and Liability Management - Total assets amounted to $9.808 billion as of March 31, 2025, compared to $9.861 billion as of March 31, 2024[206]. - Total liabilities were $8.641 billion as of March 31, 2025, compared to $8.798 billion as of March 31, 2024[206]. - The total amount of purchased credit deteriorated (PCD) loans was approximately $8.0 million at March 31, 2025, down from $12.3 million at December 31, 2024[240]. Nonperforming Loans and Credit Losses - Nonperforming LHFI increased by $6.4 million to $81,368 thousand at March 31, 2025, resulting in a nonperforming LHFI ratio of 1.07%, up from 0.99% at the end of 2024[244]. - The allowance for loan credit losses (ALCL) to nonperforming LHFI decreased to 113.08% at March 31, 2025, from 121.41% at December 31, 2024, primarily due to the increase in nonperforming loans[257]. - Provision for credit losses increased by $432,000 to $3.4 million for the three months ended March 31, 2025, primarily due to an $805,000 increase in provisions for off-balance-sheet items[212]. Equity and Capital - Stockholders' equity increased by $34.9 million, or 3.1%, to $1.18 billion at March 31, 2025, compared to December 31, 2024[201]. - Common equity Tier 1 capital to risk-weighted assets improved to 13.57% as of March 31, 2025, up from 13.32% at December 31, 2024[291]. - Regulatory capital ratios showed compliance with all applicable requirements, with the Bank classified as "well capitalized" as of March 31, 2025[290]. Operational Efficiency - The company anticipates earnings improvement of approximately $23.4 million annually on a pre-tax pre-provision basis due to various efficiency optimizations[195]. - Noninterest expense for the three months ended March 31, 2025, increased by $3.4 million, or 5.7%, to $62.1 million, driven by increases in salaries and employee benefits and occupancy expenses[219]. - The increase in occupancy and equipment expenses was primarily due to a $1.5 million increase related to the consolidation of eight banking centers[221]. Market and Economic Conditions - The steep increase in interest rates has negatively impacted borrowers with variable rate loans, contributing to higher nonperforming loans[245]. - Interest rate sensitivity analysis indicated a 15.9% increase in net interest income with a 400 basis point increase in interest rates[303]. - The company continues to monitor the quality of its lending portfolio through disciplined underwriting and ongoing performance assessments[241].