Financial Performance - Origin Bancorp reported net income of $14.3 million, or $0.46 diluted EPS for Q4 2024, a decrease from $18.6 million, or $0.60 diluted EPS in Q3 2024[1]. - For the full year 2024, net income was $76.5 million, or $2.45 diluted EPS, down 9.6% from $2.71 in 2023[1]. - Net income for Q4 2024 was $14,270,000, down from $18,601,000 in Q3 2024, a decrease of 23%[35]. - Basic and diluted earnings per common share for Q4 2024 were both $0.46, compared to $0.60 in Q3 2024, a decline of 23%[35]. - Annualized net income for the quarter was $56,770,000, down from $91,025,000 in the previous quarter[56]. Earnings and Margins - Pre-tax, pre-provision earnings for Q4 2024 were $12.6 million, a significant drop from $28.3 million in the previous quarter[1]. - The net interest margin (NIM) improved to 3.31% for the quarter ended December 31, 2024, compared to 3.16% in the previous quarter[46]. - The fully tax equivalent net interest margin (NIM-FTE) expanded by 15 basis points to 3.33% in Q4 2024 compared to Q3 2024[4]. - The efficiency ratio for Q4 2024 was 83.85%, compared to 68.86% in Q3 2024, indicating a deterioration in operational efficiency[35]. Income and Expenses - Noninterest income for Q4 2024 was a negative $330,000, a decrease of $16.3 million from the linked quarter, primarily due to losses on securities sales[14]. - Noninterest expense increased by $2.9 million, or 4.6%, to $65.4 million in Q4 2024, driven by higher occupancy and equipment expenses[17]. - Total noninterest expense for the year was $251,038,000, an increase from $235,216,000 in 2023[59]. Loans and Deposits - Total loans held for investment (LHFI) decreased to $7.57 billion, down $383.1 million or 4.8% from the previous quarter[22]. - Total deposits were $8.22 billion, a decrease of $263.4 million or 3.1% compared to the linked quarter[29]. - Total loans held for investment (LHFI) decreased to $7,573,713 thousand as of December 31, 2024, down from $7,956,790 thousand in the previous quarter, representing a decline of 4.8%[44]. - Total deposits decreased to $8,223,120,000 from $8,486,568,000, reflecting a decline of approximately 3%[42]. Credit Quality - The provision for credit loss benefit was $5.4 million in Q4 2024, a $10 million change from a provision for credit loss expense in the previous quarter[10]. - Provision for credit losses showed a benefit of $(5,398,000) in Q4 2024, compared to a provision of $4,603,000 in Q3 2024, indicating improved credit quality[35]. - Nonperforming LHFI increased to $75,002 thousand, up from $64,273 thousand in the previous quarter, indicating a rise of 16.9%[44]. - The allowance for loan credit losses (ALCL) remained stable at $91,060 thousand, down from $95,989 thousand in the previous quarter, a decrease of 5.5%[44]. Securities and Investments - A bond portfolio optimization strategy was executed, resulting in a loss of $14.6 million on the sale of securities, negatively impacting diluted EPS by $0.37[10]. - The company realized a loss of $14.6 million from the sale of available-for-sale investment securities with a book value of $188.2 million[29]. - Loss on sales of securities, net totaled $14,799 thousand, affecting EPS by $(0.37)[51]. Future Outlook - The company aims for a greater than 1% return on average assets (ROAA) run rate by Q4 2025, with expected annual earnings improvement of approximately $21 million[4]. - The company expects to close six banking centers by February 2025, which is projected to reduce annual occupancy expenses by approximately $3.6 million[19]. - The company plans to hold a conference call on January 23, 2025, to discuss its fourth quarter and full year 2024 results[25].
Origin Bank(OBK) - 2024 Q4 - Annual Results