Origin Bank(OBK)2025-02-27 20:43Financial Performance - As of December 31, 2024, total assets were 7.57 billion, total deposits were 1.15 billion[19]. - Net income for 2024 was 83,800 thousand in 2023, representing a decrease of 8.3%[417]. - Total stockholders' equity increased to 1,062,905 thousand in 2023, an increase of 7.75%[414]. - Comprehensive income for 2024 was 122,652 thousand in 2023, a decrease of 25.4%[419]. - Basic earnings per common share decreased to 2.72 in 2023, a decline of 9.56%[417]. - Cash flows from operating activities for 2024 were 129,921,000 in 2023, representing a decline of 16.6%[425]. - Noninterest income totaled 58,335 thousand in 2023, a decrease of 5.03%[417]. - Total noninterest expense increased to 235,216 thousand in 2023, an increase of 6.73%[417]. - The company reported a stock-based compensation expense of 5,281,000 in 2023, indicating a rise of 34.8%[425]. Capital and Regulatory Compliance - The company raised over 307.8 million in 2022[22]. - The company is subject to the Volcker Rule, which may affect its activities once total consolidated assets exceed 1 billion in assets, like Origin Bank, must ensure incentive compensation does not encourage inappropriate risks[95]. - The Company and Origin Bank's regulatory capital ratios were above the applicable well-capitalized standards and met the capital conservation buffer[104]. - The required minimum leverage ratio for all banks and bank holding companies is 4%[99]. - To be well-capitalized, Origin Bank must maintain a Tier 1 risk-based capital ratio of 6.0% or greater and a total risk-based capital ratio of 10.0% or greater[102]. - The capital conservation buffer required is 2.5%, comprised of CET1, above each of the minimum risk-based capital ratio requirements[100]. - The company is subject to various regulatory policies relating to the payment of dividends, including maintaining adequate capital above regulatory minimums[107]. - The Federal Reserve has indicated that a bank holding company should consult with them and potentially reduce dividends if it is in danger of not meeting minimum regulatory capital adequacy ratios[109]. Loan Portfolio and Credit Quality - The loan portfolio composition as of December 31, 2024, included 31.1% commercial and industrial loans and 44.1% commercial real estate loans[28]. - The Company’s loan portfolio totaled 91.1 million[409]. - The provision for credit losses decreased to 16,753 thousand in 2023, a reduction of 55.54%[417]. - Delinquency statistics are updated monthly, serving as a key indicator of credit quality for various loan types, including residential and consumer loans[457]. - Loans are placed on nonaccrual status when they are 90 days or more past due, impacting the recognition of interest income[454]. - The allowance for credit losses is calculated using historical loss rates adjusted for current conditions, with a focus on loans held for investment[456]. Interest Income and Rate Risk - Interest income from commercial real estate loans was 135.1 million in 2023[36]. - The commercial and industrial loans contributed interest income of 155.8 million in 2023[38]. - Net interest income increased slightly to 299,557 thousand in 2023, reflecting a growth of 0.27%[417]. - Interest rate risk modeling indicates that for a 100-basis point shift, estimated net interest income at risk for the subsequent one-year period should not decline by more than 10.0%[393]. - Under the static model, a 400-basis point increase in interest rates would result in a 15.9% increase in net interest income, while a decrease of the same magnitude would lead to an 11.0% decline[395]. - The Company employs interest rate risk simulation models to assess the impact of interest rate fluctuations on net interest income and fair value of equity[392]. Market Expansion and Strategic Initiatives - The company entered the Southeast market in 2024 with two banking locations in South Alabama and the Florida Panhandle[22]. - The company plans to close six banking centers by the end of February 2025 as part of its strategic initiatives[19]. - Origin Bancorp, Inc. operates over 60 locations across multiple states, including Texas, Louisiana, Mississippi, Alabama, and Florida[430]. Diversity and Inclusion Efforts - The company has established a Diversity Council consisting of 17 diverse employees to advance its Diversity, Equity, and Inclusion efforts[56]. - The Diversity Council launched in 2023 aims to enhance workplace inclusion and community engagement, hosting events like Origin Connections Month[73]. - Employee survey results showed that 90% of responses exceeded benchmarks of Glint's top 10% of global companies, indicating strong inclusion and belonging[76]. - Origin Bank has been recognized as a "Best Bank to Work For" for twelve consecutive years, reflecting its commitment to corporate culture and employee development[78]. - The company is committed to ongoing training and development programs to foster inclusion and diversity within its workforce[77]. Regulatory and Compliance Challenges - The company reported that any reduction in interchange income due to the loss of the exemption for small issuers under the Durbin Amendment could significantly adversely affect its business starting in the second half of 2026[125]. - The revised CRA regulations, effective January 1, 2026, will likely make it more challenging for the company to receive a satisfactory rating on its CRA exam[127]. - The company is subject to a final rule from the CFPB that caps overdraft fees at 10 billion in assets[132]. - The company has augmented its anti-money laundering compliance programs in response to regulatory scrutiny and potential sanctions for violations[120]. - The company must comply with the provisions of the Equal Credit Opportunity Act and the Fair Housing Act, which prohibit discrimination in lending practices[135].