Origin Bancorp, Inc. Reports Earnings for Third Quarter 2025

Core Points - Origin Bancorp, Inc. reported a net income of $8.6 million, or $0.27 diluted EPS for Q3 2025, down from $14.6 million, or $0.47 diluted EPS in Q2 2025 [1] - Pre-tax, pre-provision earnings (PTPP) increased to $47.8 million for Q3 2025, a significant rise of 122% compared to the previous quarter [1][4] - The company is focused on its "Optimize Origin" initiative aimed at enhancing financial performance and achieving a top quartile return on average assets (ROAA) [2][5] Financial Highlights - Net interest income for Q3 2025 was $83.7 million, up by 1.9% from the linked quarter, marking the highest level in the last ten quarters [1][8] - The net interest margin (NIM-FTE) expanded to 3.65%, reflecting a four basis point increase from the previous quarter [1][14] - Total deposits reached $8.33 billion, an increase of 2.6% from the previous quarter, with noninterest-bearing deposits rising by 8.6% [1][31] Credit Quality - The allowance for loan credit losses (ALCL) was $96.3 million, a 4.1% increase from the previous quarter [15] - Net charge-offs surged to $31.4 million, primarily due to issues related to Tricolor Holdings, LLC [17][19] - Past due loans increased by 7.2% compared to the previous quarter, indicating potential credit quality concerns [15] Noninterest Income and Expenses - Noninterest income for Q3 2025 was $26.1 million, a substantial increase from the linked quarter, primarily due to a recovery in equity method investment income [20][23] - Noninterest expenses remained relatively stable at $62.0 million, showing a slight increase of 0.1% from the previous quarter [25] Investment and Securities - Total loans held for investment (LHFI) decreased to $7.54 billion, down 1.9% from the previous quarter, driven by declines in certain loan categories [27] - Total securities decreased to $1.12 billion, primarily due to scheduled principal paydowns [33] - Equity method investments increased significantly to $65.6 million, reflecting a change in accounting treatment following an additional investment in Argent Financial [33]