Origin Bancorp, Inc. Reports Earnings for Second Quarter 2025

Core Insights - Origin Bancorp, Inc. reported a net income of $14.6 million, or $0.47 diluted EPS for Q2 2025, a decrease from $22.4 million, or $0.71 diluted EPS in Q1 2025 [1][38] - The company’s PTPP earnings were $21.5 million for Q2 2025, down from $32.0 million in the previous quarter [1][38] - The CEO emphasized the successful execution of the "Optimize Origin" plan aimed at enhancing financial performance and operational efficiency [2] Financial Performance - Net interest income for Q2 2025 was $82.1 million, an increase of $3.7 million, or 4.7%, compared to Q1 2025 [6][38] - The net interest margin (NIM-FTE) expanded by 17 basis points to 3.61% for Q2 2025, driven by an increase in yield on interest-earning assets [11][13] - Total loans held for investment (LHFI) increased by $98.9 million, or 1.3%, to $7.68 billion at June 30, 2025 [33][38] Balance Sheet and Capital Management - Total deposits decreased by $215.4 million, or 2.6%, to $8.12 billion compared to Q1 2025, influenced by seasonal factors [33][38] - The company repurchased 136,399 shares at an average price of $31.84 per share during the quarter [11][38] - Book value per common share increased to $38.62, reflecting a 2.3% increase from the previous quarter [11][38] Credit Quality - Past due LHFI decreased to $67.6 million, a reduction of 7.1% from the previous quarter [15][18] - Nonperforming LHFI increased to $85.3 million, representing a 4.9% increase compared to the linked quarter [15][18] - The allowance for loan credit losses (ALCL) was $92.4 million, showing a slight increase of 0.5% from the previous quarter [15][18] Noninterest Income and Expenses - Noninterest income for Q2 2025 was $1.4 million, a significant decrease of $14.2 million, or 91.2%, primarily due to a loss on sales of securities [20][21] - Noninterest expense remained relatively stable at $62.0 million, a slight decrease of 0.1% from the previous quarter [23][26] - The efficiency ratio was reported at 74.23%, indicating a decline in operational efficiency compared to the previous quarter [39]