Q3 2025 Origin Bancorp Inc Earnings Call Transcript
Key Points
- Origin Bancorp Inc (OBK) reported a significant increase in pretax pre-provision ROA, rising 48 basis points to 1.63% for Q3 2025 compared to 1.15% in Q2 2024.
- The company achieved a 10% increase in total revenue, excluding notable items, and a 3% decrease in non-interest expenses, showcasing effective cost management.
- Loan originations are up 19.2% year-to-date compared to the same period last year, indicating strong production and demand.
- Non-interest-bearing deposits grew by $158.6 million or 8.6% quarter-over-quarter, reflecting strong deposit growth.
- The company successfully repurchased 265,248 shares at an average price of $35.85, demonstrating a commitment to returning value to shareholders.
- Origin Bancorp Inc (OBK) faced a significant charge-off related to Tricolor, totaling $28.4 million, due to fraud allegations and bankruptcy, impacting financial results.
- Net charge-offs for Q3 were $31.4 million, with $3 million in net charge-offs outside of Tricolor, indicating some credit quality concerns.
- Loans decreased 1.9% sequentially, and the company revised its loan growth guidance to essentially flat for the year, reflecting challenges in achieving growth targets.
- Classified loans increased by $10.7 million, and non-performing assets rose to 1.18% at quarter-end, indicating some deterioration in asset quality.
- The company anticipates potential impacts on net interest margin due to expected Fed rate cuts, which could pressure future earnings.
Good morning, and welcome to the Origin Bancorp, Inc. third-quarter earnings conference call. My name is Tom, and I'll be your Evercall coordinator. (Operator Instructions). Please note, this event is being recorded.
I would now like to turn the conference call over to Chris Reigelman. Chris, you may proceed.
Good morning, and thank you for joining us today. We issued our earnings press release yesterday afternoon, a copy of which is available on our website, along with the slide presentation that we will refer to during this call.
Please refer to page 2 of our slide presentation, which includes our Safe Harbor statements regarding forward-looking statements and the use of non-GAAP financial measures. For those joining by phone, please note the slide presentation is available on our website at www.ir.origin.bank. Please also note that our Safe Harbor statements are available on page 7 of our earnings release filed with
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