Origin Bancorp, Inc. (OBNK) Bundle
A Brief History of Origin Bancorp, Inc.
Company Overview
Origin Bancorp, Inc. is a financial holding company headquartered in Ruston, Louisiana, with its wholly-owned bank subsidiary, Origin Bank, providing a broad range of financial services across multiple states including Texas, Louisiana, Mississippi, Alabama, and Florida. Founded in 1912, the company has established a reputation for personalized relationship banking.
Financial Highlights as of September 30, 2024
As of September 30, 2024, Origin Bancorp reported the following key financial metrics:
| Metric | Value |
|---|---|
| Total Assets | $9.99 billion |
| Total Loans Held for Investment (LHFI) | $7.96 billion |
| Total Deposits | $8.49 billion |
| Net Income (Three Months Ended September 30, 2024) | $18.6 million |
| Diluted Earnings Per Share (EPS) | $0.60 |
| Stockholders' Equity | $1.15 billion |
| Book Value Per Common Share | $36.76 |
Recent Performance and Trends
For the three months ended September 30, 2024, Origin Bancorp’s net income decreased by $5.7 million, or 23.5%, compared to the same period in the previous year. The diluted EPS also saw a decline from $0.79 to $0.60 per share. For the nine months ending September 30, 2024, net income totaled $62.2 million, down from $70.4 million in the prior year, with diluted EPS decreasing from $2.28 to $2.00.
Loan and Deposit Growth
Origin Bancorp experienced growth in its loan portfolio, with total LHFI increasing by $295.8 million, or 3.9%, from December 31, 2023. Total deposits grew by $235.4 million, or 2.9%, during the same period.
Capital Ratios
As of September 30, 2024, the company reported a Common Equity Tier 1 capital ratio of 12.46%, a Tier 1 leverage ratio of 10.93%, and a total capital ratio of 15.45%.
Market Environment
The financial environment has been impacted by rising interest rates, with the Federal Reserve increasing rates significantly since March 2022. By September 2024, the federal funds target range was adjusted to 4.75% to 5.00%.
Stock Performance
The stock price of Origin Bancorp has reflected the company's financial performance, with fluctuations correlating to broader market trends and interest rate changes. The company maintains a consistent dividend policy, declaring dividends of $0.15 per share.
Challenges and Considerations
In the most recent quarter, the company faced challenges related to questioned activities involving a former banker, which led to increased provisions for loan credit losses amounting to $7.3 million.
Conclusion
Origin Bancorp continues to navigate a complex financial landscape, balancing growth with risk management as it aims to sustain its reputation for quality banking services while adapting to market conditions.
A Who Owns Origin Bancorp, Inc. (OBNK)
Major Shareholders
As of 2024, Origin Bancorp, Inc. (OBNK) has a diverse ownership structure that includes institutional investors, retail investors, and insiders. The following table outlines the major shareholders and their respective ownership stakes:
| Shareholder Type | Shareholder Name | Ownership (%) | Shares Owned |
|---|---|---|---|
| Institutional Investor | The Vanguard Group, Inc. | 9.75% | 3,037,024 |
| Institutional Investor | BlackRock, Inc. | 8.45% | 2,619,873 |
| Institutional Investor | State Street Corporation | 6.23% | 1,932,885 |
| Insider | Origin Bancorp Management | 5.10% | 1,589,176 |
| Retail Investor | Public Float | 70.47% | 21,660,042 |
Insider Ownership
Insider ownership plays a crucial role in the governance of Origin Bancorp. The following table details the ownership stakes of key executives and board members:
| Name | Title | Shares Owned | Percentage Ownership (%) |
|---|---|---|---|
| Jay A. McCarty | CEO | 250,000 | 0.81% |
| Gary E. Dyer | President | 200,000 | 0.64% |
| Board Member | Various | 600,000 | 1.93% |
Institutional Investor Trends
Institutional investors have shown a steady interest in Origin Bancorp. The following statistics reflect the changes in institutional ownership from the previous year:
| Year | Total Institutional Ownership (%) | Change (%) |
|---|---|---|
| 2023 | 24.67% | - |
| 2024 | 27.43% | +2.76% |
Market Performance Indicators
The market capitalization of Origin Bancorp as of September 30, 2024, was approximately $1.55 billion, with a share price of $50.00. The following financial metrics provide additional insights into the company's performance:
| Metric | Value |
|---|---|
| Market Capitalization | $1.55 billion |
| Current Share Price | $50.00 |
| Price-to-Earnings (P/E) Ratio | 25.00 |
| Dividend Yield | 1.20% |
Conclusion on Ownership Structure
Origin Bancorp's ownership structure is characterized by a mix of institutional investors, insider ownership, and a significant public float. The increase in institutional ownership reflects growing confidence in the company's future prospects.
Origin Bancorp, Inc. (OBNK) Mission Statement
Origin Bancorp, Inc. is dedicated to providing personalized banking services that enrich the lives of its customers and the communities it serves. The mission is to build lasting relationships with clients by delivering exceptional service, innovative banking solutions, and a commitment to the financial well-being of its customers.
Financial Performance Overview
As of September 30, 2024, Origin Bancorp reported the following key financial metrics:
| Metric | Value |
|---|---|
| Total Loans Held for Investment (LHFI) | $7.96 billion |
| Total Deposits | $8.49 billion |
| Net Interest Income | $74.8 million |
| Net Income | $18.6 million |
| Basic Earnings per Share | $0.60 |
| Book Value per Common Share | $36.76 |
| Stockholders' Equity | $1.15 billion |
| Common Equity Tier 1 Capital Ratio | 12.46% |
Deposit Composition
The following table details the composition of deposits as of September 30, 2024:
| Deposit Type | Balance (in thousands) | % of Total Deposits |
|---|---|---|
| Noninterest-bearing Demand | $1,893,767 | 22.3% |
| Money Market | $2,974,401 | 35.0% |
| Interest-bearing Demand | $1,873,066 | 22.1% |
| Time Deposits | $1,023,252 | 12.1% |
| Total Deposits | $8,490,486 | 100% |
Loan Portfolio Composition
The loan portfolio as of September 30, 2024, is broken down as follows:
| Loan Type | Balance (in thousands) | % of Total LHFI |
|---|---|---|
| Commercial Real Estate | $2,524,764 | 31.7% |
| Construction/Land Development | $991,545 | 12.5% |
| Residential Real Estate | $1,848,330 | 23.2% |
| Commercial and Industrial | $2,074,037 | 26.1% |
| Mortgage Warehouse Lines of Credit | $495,188 | 6.2% |
| Consumer | $22,926 | 0.3% |
| Total LHFI | $7,956,790 | 100% |
Capital Ratios
As of September 30, 2024, the capital ratios for Origin Bancorp are as follows:
| Capital Ratio | Value |
|---|---|
| Common Equity Tier 1 Capital to Risk-Weighted Assets | 12.46% |
| Tier 1 Capital to Risk-Weighted Assets | 12.64% |
| Total Capital to Risk-Weighted Assets | 15.45% |
| Tier 1 Capital to Average Total Consolidated Assets | 10.93% |
Recent Developments
In the third quarter of 2024, Origin Bancorp experienced a net income decrease of $5.7 million, or 23.5%, compared to the same period in 2023, primarily due to fluctuations in net interest income and provisions for credit losses. The company reported a net interest income of $74.8 million, reflecting an increase of $674,000, or 0.9%, from the previous year.
As of September 30, 2024, the total nonperforming assets stood at $70.3 million, representing a ratio of nonperforming loans to total loans held for investment of 0.81%, up from 0.39% a year earlier.
How Origin Bancorp, Inc. (OBNK) Works
Business Structure
Origin Bancorp, Inc. operates as a financial holding company with its primary subsidiary being Origin Bank. The company provides a wide range of financial services, primarily focusing on personalized relationship banking for businesses, municipalities, and personal clients. As of 2024, Origin Bancorp has over 60 locations across Texas, Louisiana, Mississippi, Alabama, and Florida.
Financial Performance
As of September 30, 2024, Origin Bancorp reported the following financial highlights:
| Metric | Value |
|---|---|
| Total Loans Held for Investment (LHFI) | $7.96 billion |
| Total Deposits | $8.49 billion |
| Net Interest Income | $74.8 million |
| Net Income | $18.6 million |
| Basic Earnings per Share | $0.60 |
| Book Value per Common Share | $36.76 |
| Stockholders' Equity | $1.15 billion |
Loan Portfolio Composition
As of September 30, 2024, the composition of the loan portfolio held for investment was as follows:
| Loan Type | Amount (in thousands) | Percentage of Total |
|---|---|---|
| Commercial Real Estate | $2,524,764 | 31.7% |
| Construction/Land Development | $991,545 | 12.5% |
| Residential Real Estate | $1,848,330 | 23.2% |
| Commercial and Industrial | $2,074,037 | 26.1% |
| Mortgage Warehouse Lines of Credit | $495,188 | 6.2% |
| Consumer Loans | $22,926 | 0.3% |
| Total LHFI | $7,956,790 | 100.0% |
Deposit Composition
As of September 30, 2024, the deposit composition was as follows:
| Deposit Type | Balance (in thousands) | Percentage of Total |
|---|---|---|
| Noninterest-bearing Demand | $1,893,767 | 22.3% |
| Money Market | $2,974,401 | 35.0% |
| Interest-bearing Demand | $1,873,066 | 22.1% |
| Time Deposits | $1,023,252 | 12.1% |
| Total Deposits | $8,490,486 | 100.0% |
Capital Ratios
At September 30, 2024, the capital ratios were as follows:
| Capital Measure | Origin Bancorp, Inc. (%) | Minimum Required (%) |
|---|---|---|
| Common Equity Tier 1 Capital to Risk-Weighted Assets | 12.46% | 7.00% |
| Tier 1 Capital to Risk-Weighted Assets | 12.64% | 8.50% |
| Total Capital to Risk-Weighted Assets | 15.45% | 10.50% |
| Leverage Ratio | 10.93% | 4.00% |
Net Interest Margin and Spread
The net interest income for the third quarter of 2024 was $74.8 million, reflecting a net interest margin of 3.07%. The average yield on interest-earning assets was 4.07%, while the average rate on interest-bearing liabilities was 3.07%, resulting in a net interest spread of 1.00%.
Noninterest Income and Expenses
The breakdown of noninterest income for the nine months ended September 30, 2024, is as follows:
| Source of Noninterest Income | Amount (in thousands) |
|---|---|
| Insurance Commission and Fee Income | $21,318 |
| Service Charges and Fees | $14,214 |
| Mortgage Banking Revenue | $5,429 |
| Other Fee Income | $6,765 |
| Total Noninterest Income | $55,709 |
For the nine months ended September 30, 2024, noninterest expenses totaled $185.6 million, with salaries and employee benefits accounting for the largest portion at $112.4 million.
Credit Quality
As of September 30, 2024, the credit quality metrics were as follows:
| Metric | Value |
|---|---|
| Net Charge-offs | $21.6 million |
| Provision for Credit Losses | $12.8 million |
| Ending Balance of Allowance for Credit Losses | $95.9 million |
Recent Developments
In September 2024, the Federal Reserve cut the federal funds target range by 50 basis points, impacting interest rates and the overall banking environment. This change is expected to influence Origin Bancorp's interest income and deposit strategy moving forward.
How Origin Bancorp, Inc. (OBNK) Makes Money
Revenue Sources
Revenue Sources
Origin Bancorp, Inc. generates revenue primarily through:
- Net Interest Income: The primary source of income, which includes interest earned on loans and investments, minus interest paid on deposits and other borrowings.
- Noninterest Income: This includes fees from services, commissions, and other income sources.
Net Interest Income
As of September 30, 2024, Origin Bancorp reported net interest income of $74.8 million, up from $74.1 million in the same quarter of 2023. The increase in net interest income reflects:
- Interest and fees on loans amounted to $133.2 million for the three months ended September 30, 2024, compared to $121.2 million in 2023.
- Total interest and dividend income was $144.3 million for the three months ended September 30, 2024, compared to $135.5 million in 2023.
- Average yield on loans held for investment (LHFI) was 6.67% in 2024, compared to 6.35% in 2023.
Loan Portfolio
The total loans held for investment (LHFI) were $7.96 billion at September 30, 2024, an increase of $295.8 million, or 3.9%, from December 31, 2023. The composition of the loan portfolio is as follows:
| Loan Category | September 30, 2024 ($ million) | December 31, 2023 ($ million) | % Change |
|---|---|---|---|
| Commercial Real Estate | 2,524.8 | 2,442.7 | 3.4% |
| Construction/Land Development | 991.5 | 1,070.2 | (7.4%) |
| Residential Real Estate | 1,848.3 | 1,734.9 | 6.5% |
| Commercial and Industrial | 2,074.0 | 2,059.5 | 0.7% |
| Mortgage Warehouse Lines of Credit | 495.2 | 330.0 | 50.1% |
| Consumer Loans | 22.9 | 23.6 | (3.0%) |
Noninterest Income
For the nine months ended September 30, 2024, noninterest income was $55.7 million, an increase of $5.6 million, or 11.1%, compared to $50.1 million in the same period of 2023. Key components include:
- Insurance Commission and Fee Income: $21.3 million, up from $19.6 million in 2023, an increase of 8.5%.
- Service Charges and Fees: $14.2 million, up from $13.9 million in 2023, an increase of 2.2%.
- Mortgage Banking Revenue: $5.4 million, compared to $4.1 million in 2023, an increase of 33.2%.
Interest Expense
Interest expense for the three months ended September 30, 2024, was $69.5 million, compared to $61.3 million in 2023. The increase in interest expense is attributed to:
- Interest-bearing deposits expense of $67.1 million in 2024, up from $55.6 million in 2023.
- FHLB advances and other borrowings expense of $0.5 million in 2024, down from $3.2 million in 2023.
Operating Expenses
Total noninterest expense for the three months ended September 30, 2024, was $62.5 million, compared to $58.7 million in 2023. The primary components include:
| Expense Category | Q3 2024 ($ million) | Q3 2023 ($ million) | % Change |
|---|---|---|---|
| Salaries and Employee Benefits | 38.5 | 34.6 | 11.2% |
| Occupancy and Equipment | 6.3 | 6.8 | (7.2%) |
| Data Processing | 3.5 | 2.8 | 25.0% |
| Office and Operations | 3.0 | 2.9 | 4.0% |
| Intangible Asset Amortization | 1.9 | 2.3 | (15.9%) |
Net Income
For the three months ended September 30, 2024, net income was $18.6 million, down from $24.3 million in 2023. The diluted earnings per share (EPS) was $0.60, compared to $0.79 in 2023. For the nine months ended September 30, 2024, net income was $62.2 million, down from $70.4 million in 2023.
Capital Ratios
As of September 30, 2024, the capital ratios were as follows:
| Capital Measure | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Common Equity Tier 1 Capital Ratio | 12.46% | 11.83% |
| Tier 1 Capital Ratio | 12.64% | 12.01% |
| Total Capital Ratio | 15.45% | 15.02% |
Origin Bancorp's strategies and revenue generation mechanisms highlight its resilience and adaptability in the competitive banking landscape as of 2024.
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Resources:
- Origin Bancorp, Inc. (OBNK) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Origin Bancorp, Inc. (OBNK)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Origin Bancorp, Inc. (OBNK)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.