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]
ORIGIN BANCORP(OBNK) - 2025 Q2 - Quarterly Results