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Dec 31, 2023
Origin Q4 2023 Earnings Report
Reported earnings for the fourth quarter and full year 2023.
Key Takeaways
Origin Bancorp, Inc. reported a net income of $13.4 million, or $0.43 diluted earnings per share, for the quarter ended December 31, 2023. Adjusted diluted earnings per common share was $0.60 for the quarter ended December 31, 2023.
Total loans held for investment increased by $92.9 million, or 1.2%, compared to September 30, 2023.
Total deposits were $8.25 billion at December 31, 2023, reflecting a decrease of $123.4 million, or 1.5%, compared to September 30, 2023.
Provision for credit losses was $2.7 million for the quarter ended December 31, 2023, compared to $3.5 million for the linked quarter.
Book value per common share was $34.30 at December 31, 2023, reflecting an increase of $1.98, or 6.1%, compared to the linked quarter.
Origin
Origin
Forward Guidance
Origin intends to use the proceeds from the sale of investment securities to support loan growth in its markets, including its new Southeast market. The company estimates an annualized positive forward impact to NIM-FTE of three to five basis points, an estimated annualized forward diluted EPS benefit of approximately $0.06 to $0.11, and an estimated earn-back period of 1.9 to 1.1 years.
Positive Outlook
- Sale of investment securities positively impacted NIM-FTE by one basis point for the quarter ended December 31, 2023.
- Estimated annualized positive forward impact to NIM-FTE of three to five basis points.
- Estimated annualized forward diluted EPS benefit of approximately $0.06 to $0.11.
- Estimated earn-back period of 1.9 to 1.1 years.
- Proceeds from sale will support loan growth, especially in new Southeast market.
Challenges Ahead
- Loss on sale of securities resulted in a $0.12 negative impact to diluted EPS for the quarter ended December 31, 2023.
- Noninterest-bearing deposits continued to be impacted by the higher interest rate environment
- Total deposits decreased 1.5% from the linked quarter
- The decrease in other noninterest income for the quarter ended December 31, 2023, compared to the linked quarter was primarily due to a $10.1 million positive valuation adjustment recorded on one of our non-marketable equity securities during the linked quarter, with no such valuation adjustment recorded during the current quarter.
- The decline in mortgage banking revenue was primarily due to a $1.8 million impairment recorded during the quarter ended December 31, 2023, in conjunction with the planned sale of our mortgage servicing rights asset.