Origin Bank(US:OBK)2026-01-28 21:02Financial Performance - Net income for Q4 2025 was $29.5 million, or $0.95 diluted EPS, a 242.3% increase from the previous quarter's net income of $8.6 million[1]. - PTPP earnings for the year ended December 31, 2025, were $141.9 million, an increase of $37.2 million, or 35.5%, from the previous year[1]. - Net income for Q4 2025 reached $29,516,000, compared to $8,623,000 in Q3 2025, marking a substantial increase[39]. - The annualized net income for the year ended December 31, 2025, was $117,102,000, compared to $34,211,000 in the previous year, showing a substantial increase[70]. Income and Revenue - Net interest income for Q4 2025 was $86.7 million, reflecting a 3.6% increase compared to the linked quarter, marking the highest level in the company's history[6]. - Noninterest income for Q4 2025 was $16.7 million, a decrease of $9.4 million from the previous quarter, primarily due to a $7.0 million decrease in fair value of equity investments[17]. - Total interest and dividend income for the three months ended December 31, 2025, was $134,644,000, a slight decrease from $136,139,000 in the previous quarter[44]. - Total noninterest income for the quarter was $16,736,000, a decrease from $26,128,000 in the prior quarter, reflecting a decline of approximately 36%[67]. Assets and Loans - Total assets as of December 31, 2025, were $9,724,722,000, a slight decrease from $9,791,306,000 in Q3 2025[39]. - Total loans held for investment were $7.67 billion at December 31, 2025, an increase of $133.8 million, or 1.8%, from September 30, 2025[9]. - Total LHFI, net increased to $7,574,135 thousand in Q4 2025, compared to $7,440,840 thousand in Q3 2025, marking a growth of 1.8%[48]. - Total real estate loans increased to $5,132,885 thousand in Q4 2025, up from $5,123,954 thousand in Q3 2025, reflecting a growth of 0.02%[48]. Deposits and Liabilities - Total deposits were $8.31 billion at December 31, 2025, a decrease of $24.6 million, or 0.3%, compared to the previous quarter[9]. - Total deposits decreased to $8,307,247,000 from $8,331,830,000 in the prior quarter, indicating a slight reduction in customer deposits[46]. - The company’s total liabilities stood at $8,596,874 thousand, showing a slight increase from $8,499,983 thousand in the previous quarter[54]. Equity and Book Value - Book value per common share increased to $40.28 at December 31, 2025, reflecting a 2.7% increase from the previous quarter[9]. - Total stockholders' equity increased to $1,246,685,000 in Q4 2025 from $1,214,756,000 in Q3 2025[39]. - Total common stockholders' equity increased to $1,246,685,000 from $1,214,756,000 in the prior quarter, reflecting a growth of 2.4%[67]. - The tangible book value per common share (non-GAAP) rose to $35.04, up from $33.95 in the previous quarter, representing a 3.2% increase[67]. Credit Quality - Total nonperforming loans decreased by $7.1 million to $81.2 million at December 31, 2025, compared to the previous quarter[14]. - Provision for credit losses decreased significantly to $3,158,000 in Q4 2025 from $36,820,000 in Q3 2025[39]. - The allowance for loan credit losses (ALCL) to total LHFI was 1.26% in Q4 2025, slightly down from 1.28% in Q3 2025[50]. - Net charge-offs decreased by $28.2 million for Q4 2025 compared to the previous quarter, primarily due to a significant reduction in charge-offs related to a specific borrower[16]. Operational Efficiency - The annualized ROAA was 1.19% for Q4 2025, an increase of 84 basis points, or 240.0%, compared to the previous quarter[4]. - Efficiency ratio for Q4 2025 was 60.74%, an increase from 56.48% in Q3 2025[39]. - The core efficiency ratio (non-GAAP) improved to 59.77% from 54.70% in the previous quarter, indicating enhanced operational efficiency[67]. Notable Items and Adjustments - The provision expense related to borrower fraud for the year ended December 31, 2025, amounted to $29,558,000, impacting EPS by $(0.75)[61]. - The total notable items for the year ended December 31, 2025, resulted in a negative impact of $42,824,000 on earnings, translating to a diluted EPS impact of $(1.08)[61]. - The company recognized a positive valuation adjustment on non-marketable equity securities of $6,972,000, contributing $0.18 to EPS[61]. - Operating expenses related to strategic Optimize Origin initiatives for the year ended December 31, 2025, totaled $2,671,000, with sub-lease income of $67,000 included in noninterest income[61].