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Origin Bancorp, Inc. Reports Earnings for Fourth Quarter and Full Year 2024
OBKOrigin Bank(OBK) GlobeNewswire·2025-01-22 21:15

Core Points - Origin Bancorp, Inc. reported a net income of 14.3million,or14.3 million, or 0.46 diluted earnings per share (EPS) for Q4 2024, down from 18.6million,or18.6 million, or 0.60 EPS in Q3 2024 [1] - For the year ended December 31, 2024, net income was 76.5million,or76.5 million, or 2.45 diluted EPS, a decrease of 9.6% from 2.71in2023[2]−Thecompanyisfocusedonaninitiativecalled"OptimizeOrigin"aimedatenhancingfinancialperformanceandcompanyculture[3]FinancialHighlights−Pre−tax,pre−provision(PTPP)earningsforQ42024were2.71 in 2023 [2] - The company is focused on an initiative called "Optimize Origin" aimed at enhancing financial performance and company culture [3] Financial Highlights - Pre-tax, pre-provision (PTPP) earnings for Q4 2024 were 12.6 million, down from 28.3millioninthepreviousquarter[1]−Thefullytaxequivalentnetinterestmargin(NIM−FTE)expandedby15basispointsto3.3328.3 million in the previous quarter [1] - The fully tax equivalent net interest margin (NIM-FTE) expanded by 15 basis points to 3.33% in Q4 2024, driven by a reduction in rates paid on interest-bearing liabilities [6][12] - Net interest income for Q4 2024 was 78.3 million, an increase of 4.7% from the linked quarter, marking the highest level in two years [7] Credit Quality - Past due loans held for investment (LHFI) increased to 42.4millioninQ42024,a9.342.4 million in Q4 2024, a 9.3% increase from the previous quarter [15] - The allowance for loan credit losses (ALCL) decreased by 5.1% to 91.1 million [15] - Nonperforming LHFI rose to 75.0million,reflectinga16.775.0 million, reflecting a 16.7% increase from the linked quarter [15] Noninterest Income and Expense - Noninterest income for Q4 2024 was a negative 330,000, a decrease of 16.3millionfromthelinkedquarter,primarilyduetolossesonsalesofsecurities[20][21]−Noninterestexpenseincreasedby4.616.3 million from the linked quarter, primarily due to losses on sales of securities [20][21] - Noninterest expense increased by 4.6% to 65.4 million, driven by higher occupancy and equipment expenses [22][24] Financial Condition - Total loans held for investment (LHFI) decreased by 4.8% to 7.57billionfromthepreviousquarter[26]−TotaldepositsatDecember31,2024,were7.57 billion from the previous quarter [26] - Total deposits at December 31, 2024, were 8.22 billion, a decrease of 3.1% from the linked quarter [33] - The company executed a bond portfolio optimization strategy, selling securities with a book value of 188.2million,resultinginalossof188.2 million, resulting in a loss of 14.6 million [13][33]