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Mar 30
Origin Q1 2025 Earnings Report
Origin Bancorp, Inc. reported its first quarter 2025 earnings, showing an increase in net income and improved net interest margin.
Key Takeaways
Origin Bancorp, Inc. reported solid results for the first quarter of 2025, with net income increasing to $22.4 million, up 57.0% from the linked quarter. The diluted EPS was $0.71, and the net interest margin expanded by 11 basis points. The company's 'Optimize Origin' initiative is progressing well, aiming for sustainable elite-level financial performance.
Net income for Q1 2025 was $22.4 million, a significant increase of 57.0% compared to the linked quarter.
Diluted earnings per share (EPS) for Q1 2025 was $0.71, up from $0.46 in the linked quarter.
Net interest income reached $78.5 million, its highest level in eight quarters, with a net interest margin (NIM-FTE) of 3.44%.
The 'Optimize Origin' initiative is expected to drive an annual earnings improvement of approximately $23.4 million on a pre-tax pre-provision basis.
Origin
Origin
Origin Revenue by Segment
Revenue by Segment
Commercial Real Estate Revenue
CapyFin.comConstruction/Land/Land Development Revenue
CapyFin.comResidential Real Estate Revenue
CapyFin.comCommercial and Industrial Revenue
CapyFin.comMW LOC Revenue
CapyFin.comConsumer Revenue
CapyFin.comInvestment Securities - Taxable Revenue
CapyFin.comInvestment Securities - Nontaxable Revenue
CapyFin.comAssets Held in Other Financial Institutions Revenue
CapyFin.comLoans Held for Sale Revenue
CapyFin.comNon-Marketable Equity Securities Held in Other Financial Institutions Revenue
CapyFin.comInterest-Earning Balances Due from Banks Revenue
CapyFin.com Forward Guidance
Origin Bancorp, Inc. expects to achieve a ROAA run rate greater than 1% by Q4 2025 and an ultimate target of top quartile ROAA, driven by strategic initiatives.
Positive Outlook
- Near-term target of greater than a 1% ROAA run rate by 4Q25.
- Ultimate target of top quartile ROAA.
- Branch consolidation to improve efficiency.
- Headcount reduction for cost optimization.
- Securities optimization and capital optimization strategies.
Challenges Ahead
- Impact of current and future economic conditions on financial services industry.
- Changes in benchmark interest rates and their impact on net interest income.
- Potential deterioration of asset quality.
- Factors impacting loan portfolio performance, including real estate values.
- Increased competition in the financial services industry.