Origin Bank(US:OBK)2024-07-24 20:20Financial Performance - Net income for the quarter ended June 30, 2024, was $21.0 million, or $0.67 diluted earnings per share, a decrease from $22.6 million, or $0.73 per share in the previous quarter[1] - Net income for Q2 2024 was $20,989,000, down from $22,632,000 in Q1 2024, representing a 7.3% decrease[33] - Annualized net income for the six months ended June 30, 2024, was $87,721,000, down from $92,887,000 in the same period of 2023[63] - PTPP earnings (non-GAAP) for the same period were $31,967,000, slightly up from $31,871,000 in the prior quarter[58] - ROAA (annualized) (GAAP) for June 30, 2024, was 0.84%, down from 0.92% in the previous quarter[58] Income and Revenue - Noninterest income reached $22.5 million, an increase of $5.2 million, or 30.2%, from the linked quarter, marking the highest level since becoming publicly traded in 2018[3] - Noninterest income rose to $22,465,000 in Q2 2024, compared to $17,255,000 in Q1 2024, marking a 30.5% increase[33] - Total interest and dividend income for the three months ended June 30, 2024, was $141,794,000, an increase from $138,701,000 in the previous quarter[41] Expenses - Noninterest expense was $64.4 million, an increase of $5.7 million, or 9.7%, from the linked quarter, driven by higher salaries and employee benefits[17] - Total noninterest expense rose to $64,388,000 from $58,707,000 in the previous quarter, primarily due to increased salaries and employee benefits[41] - Total noninterest expense for the six months ended June 30, 2024, was $123,095,000, an increase from $115,647,000 in the same period of 2023[63] Loans and Credit Quality - Total loans held for investment increased to $7.96 billion, reflecting a growth of $59.1 million, or 0.7%, compared to the previous quarter[3] - Nonperforming loans increased by $35.4 million, with nonperforming loans to total loans held for investment rising to 0.95% from 0.51% in the previous quarter[11] - The allowance for loan credit losses increased to $100.9 million, reflecting a 2.5% increase from the previous quarter[10] - The provision for credit losses was $5.2 million, compared to $3.0 million in the previous quarter, driven by specific loan relationships impacted by questioned activity[12] - Nonperforming assets rose to $82,639 thousand, a significant increase from $44,374 thousand in the prior quarter, reflecting a 86% increase[45] Assets and Equity - Total assets reached $9,947,182,000 in Q2 2024, up from $9,892,379,000 in Q1 2024[33] - Stockholders' equity was $1.10 billion at June 30, 2024, an increase of $17.0 million, or 1.6%, compared to the linked quarter, and an increase of $98.0 million, or 9.8%, compared to June 30, 2023[25] - The tangible book value per common share was $29.77, reflecting an increase of $0.53, or 1.8%, compared to the previous quarter[3] Deposits and Borrowings - Total deposits at June 30, 2024, were $8.51 billion, an increase of $5.4 million, or 0.1%, compared to the linked quarter, and represented an increase of $20.8 million, or 0.2%, from June 30, 2023[25] - FHLB advances and other borrowings at June 30, 2024, were $40.7 million, an increase of $27.6 million, or 209.6%, compared to the linked quarter[25] Market and Operational Insights - The company plans to expand locations in South Alabama and the Florida Panhandle in 2024[25] - The average rate on interest-bearing deposits increased to 3.95%, compared to 3.85% in the previous quarter[5] - The net interest margin (NIM) for the quarter was 3.15%, slightly down from 3.17% in the previous quarter[49]