Origin Bancorp, Inc. Reports Earnings for Fourth Quarter and Full Year 2025

Origin Bancorp, Inc. (NYSE: OBK) (“Origin,” “we,” “our” or the “Company”), the holding company for Origin Bank (the “Bank”), today announced net income of $29.5 million, or $0.95 diluted earnings per share (“EPS”) for the quarter ended December 31, 2025, compared to net income of $8.6 million, or $0.27 diluted EPS, for the quarter ended September 30, 2025. Pre-tax, pre-provision (“PTPP”)(1) earnings were $40.6 million for the quarter ended December 31, 2025, compared to $47.8 million for the linked quarter.

Net income for the year ended December 31, 2025, was $75.2 million, or $2.40 diluted EPS, representing a decrease of $0.05, or 2.0%, from diluted EPS of $2.45 for the year ended December 31, 2024. PTPP(1) earnings for the year ended December 31, 2025, were $141.9 million, representing an increase of $37.2 million, or 35.5%, from the year ended December 31, 2024.

“This quarter we reported diluted earnings per share of $0.95 and net income of $29.5 million, which drives a return on average assets of 1.19% for the quarter, well above the targeted 1.0%-plus run rate that we outlined as our near term target last January,” said Drake Mills, chairman, president and CEO of Origin Bancorp, Inc. “I am proud of our team and the results we delivered throughout the year. We have a tremendous amount of momentum as we remain focused on Optimize Origin and delivering long-term growth and value for our stakeholders.”

(1) PTPP earnings is a non-GAAP financial measure, please see the last few pages of this document for a reconciliation of this alternative financial measure to its most directly comparable GAAP measure.

Optimize Origin

  • In January 2025, we announced our initiative to drive elite financial performance and enhance our award-winning culture.
  • Built on three primary pillars:
    • Productivity, Delivery & Efficiency
    • Balance Sheet Optimization
    • Culture & Employee Engagement
  • In 4Q25, we exceeded our original goal in delivering a 4Q25 ROAA run rate of 1.19%.
  • Optimize Origin remains an important part of our corporate DNA as we continue towards our ultimate target of a top quartile ROAA. To this end, we have updated our near term ROAA run rate target to 1.15% or higher by 4Q26.

Financial Highlights

  • Net income was $29.5 million for the quarter ended December 31, 2025, reflecting an increase of $20.9 million, or 242.3%, compared to the linked quarter.
  • Net interest income was $86.7 million for the quarter ended December 31, 2025, reflecting an increase of $3.0 million, or 3.6%, compared to the linked quarter and is at its highest level ever recorded in our history.
  • Annualized ROAA was 1.19% for the quarter ended December 31, 2025, reflecting an increase of 84 basis points, or 240.0%, compared to the quarter ended September 30, 2025. PTPP ROAA(1), annualized, was 1.64% for the quarter 1 ended December 31, 2025, reflecting a decrease of 31 basis points, or 15.9%, compared to the quarter ended September 30, 2025.
  • Our fully tax equivalent net interest margin (“NIM-FTE”) expanded eight basis points to 3.73% for the quarter ended December 31, 2025, compared to the quarter ended September 30, 2025, its highest level since the quarter ended December 31, 2022.
  • Total loans held for investment (“LHFI”) were $7.67 billion at December 31, 2025, reflecting an increase of $133.8 million, or 1.8%, compared to September 30, 2025. LHFI, excluding mortgage warehouse lines of credit (“MW LOC”), were $7.14 billion at December 31, 2025, reflecting an increase of $78.0 million, or 1.1%, compared to September 30, 2025.
  • Total deposits were $8.31 billion at December 31, 2025, reflecting a decrease of $24.6 million, or 0.3%, compared to September 30, 2025. We sold $215.0 million of interest-bearing deposits on December 31, 2025, which were immediately repurchased on January 2, 2026. Excluding the impact of this sale, total deposits would have been $8.52 billion at December 31, 2025, reflecting an increase of $190.4 million, or 2.3%, compared to September 30, 2025.
  • During the quarter ended December 31, 2025, we repurchased 49,358 shares of our common stock at an average price of $38.77 per share, including commissions and applicable excise taxes. Year-to-date, we have repurchased 451,005 shares of our common stock at an average price of $35.05 per share.
  • Book value per common share was $40.28 at December 31, 2025, reflecting an increase of $1.05, or 2.7%, compared to September 30, 2025, and $3.57, or 9.7%, compared to December 31, 2024. Tangible book value per common share(1) was $35.04 at December 31, 2025, reflecting increases of $1.09, or 3.2%, compared to September 30, 2025 and $3.66, or 11.7%, compared to December 31, 2024.

(1) Tangible book value per common share and PTPP ROAA are non-GAAP financial measures. See the reconciliation of each of these alternative financial measures to its most directly comparable GAAP measure beginning on page 19 of this document.

Results of Operations for the Quarter Ended December 31, 2025

Net Interest Income and Net Interest Margin

Net interest income for the quarter ended December 31, 2025, was $86.7 million, an increase of $3.0 million, or 3.6%, compared to the quarter ended September 30, 2025. The total increase in net interest income was primarily driven by a $4.5 million decrease in interest expense, partially offset by a $1.5 million decrease in interest income.

The $4.5 million decrease in interest expense was mainly attributable to a $4.3 million reduction in interest expense on savings and interest-bearing transaction accounts, driven primarily by a $2.6 million decrease in money market deposit interest expense and a $1.4 million decrease in interest expense on interest-bearing demand accounts, mainly due to lower interest rates, when compared to the quarter ended September 30, 2025. The average rate on money market deposits declined 40 basis points to 3.10% for the three months ended December 31, 2025, from 3.50% for the three months ended September 30, 2025. The average rate on interest-bearing demand deposits decreased 26 basis points to 2.60% for the three months ended December 31, 2025, from 2.86% for the three months ended September 30, 2025. Included in interest expense was the accelerated recognition of $783,000 of the original issue discount amortization associated with the redemption of our subordinated debentures during the quarter ended December 31, 2025.

The $1.5 million decrease in interest income was primarily due to decreases of $797,000 and $776,000 in interest income on loans held for investment and interest-earning balances due from banks, respectively, compared to the three months ended September 30, 2025. The decrease in interest income on loans held for investment was mainly attributable to a $1.8 million decline in interest income on commercial and industrial loans mainly due to lower interest rates, partially offset by a $1.1 million increase in interest income from higher average balances in commercial real estate loans. The average rate on commercial and industrial loans held for investment declined 33 basis points to 6.89% for the three months ended December 31, 2025, from 7.22% for the three months ended September 30, 2025. The average commercial real estate loan balances increased $73.3 million during the three months ended December 31, 2025 compared to the three months ended September 30, 2025. The decrease in interest income on interest-earning balances due from banks was attributable to a combination of lower average balances and lower market interest rates during the current quarter, compared to the quarter ended September 30, 2025.

The Federal Reserve Board sets various benchmark rates, including the federal funds rate, and thereby influences the general market rates of interest, including loan and deposit rates offered by financial institutions. On October 29, 2025, and December 10, 2025, the Federal Reserve Board reduced the federal funds target rate range by 25 basis points each, to a range of 3.50% to 3.75%, decreasing the federal funds target range for the fifth and sixth times for a total of 175 basis points from its recent cycle high set in mid-2023.

Our NIM-FTE was 3.73% for the quarter ended December 31, 2025, representing eight- and 40-basis-point increases compared to the linked quarter and the quarter ended December 31, 2024, respectively. The yield earned on interest-earning assets was 5.76% for the quarter ended December 31, 2025, representing decreases of 13- and 15-basis points compared to the linked quarter and the quarter ended December 31, 2024, respectively. The average rate paid on total interest-bearing liabilities for the quarter ended December 31, 2025, was 2.96%, representing a reduction of 26- and 68-basis points compared to the linked quarter and the quarter ended December 31, 2024, respectively.

Our results included a credit loss provision expense of $3.2 million during the quarter ended December 31, 2025, which includes a $3.7 million provision for loan credit losses, compared to provision for loan credit losses of $35.2 million for the linked quarter. During the current quarter, a $1.1 million off-balance sheet commitment related to the Tricolor Holdings, LLC borrower fraud, which was previously disclosed in our Current Report on Form 8-K filed on September 10, 2025, was drawn and subsequently charged off. This transaction had the effect of reducing the off-balance sheet provision on Tricolor Holdings, LLC commitments from $1.5 million to $400,000 and increasing the provision for loan credit loss by the same amount, thereby resulting in a net zero impact to total provision expense. Additionally, the decrease in total credit loss provision was primarily related to the borrower fraud impacting the Tricolor Holdings, LLC loan relationship, and drove a $29.5 million increase in the total provision, consisting of a $28.1 million provision for loan credit losses and a $1.5 million provision for off- balance sheet commitments, during the linked quarter. Also contributing to the decrease in provision for loan credit losses was a $1.7 million provision for relationships impacted by the questioned banker activity first disclosed during the quarter ended June 30, 2024, which was recorded during the linked quarter. Our provision for loan credit losses, exclusive of these events, would have been $5.5 million for the quarter ended September 30, 2025, representing a $1.8 million decrease, comparing the current quarter to the linked quarter.

Total nonperforming LHFI decreased $7.1 million at December 31, 2025, when compared to September 30, 2025. The decrease was primarily due to the payoff of two loans totaling $5.8 million in the residential sector, partially offset by an increase of $2.7 million for a commercial real estate loan that is now nonperforming. Also contributing to the decrease was a charge-off during the current quarter totaling $1.7 million related to one commercial and industrial relationship. The remaining change was made up of smaller, more granular loan amounts.

Past due 30 to 89 days and still accruing increased $7.0 million at December 31, 2025, when compared to September 30, 2025, primarily due to an increase of $7.6 million in residential real estate loans. Also contributing to the increase is one commercial real estate relationship totaling $4.2 million that was current in the linked quarter. These increases were partially offset by a decrease of $2.7 million from one commercial real estate relationship that transitioned out of 30 to 89 and still accruing into nonaccrual.

Net charge-offs decreased $28.2 million for the quarter ended December 31, 2025, when compared to the quarter ended September 30, 2025, primarily due to net charge-offs of $28.4 million in the linked quarter related to the relationship with Tricolor Holdings, LLC, discussed above, for which we are pursuing all possible opportunities for recovery.

Noninterest Income

Noninterest income for the quarter ended December 31, 2025, was $16.7 million, a decrease of $9.4 million from the linked quarter, primarily driven by decreases of $7.0 million, $1.6 million and $1.3 million in changes in fair value of equity investments, other income and swap fee income, respectively. These decreases were partially offset by an increase of $1.3 million in equity method investment income.

The $7.0 million decrease in the fair value of equity method investments was driven by the additional investment in Argent Financial in the linked quarter, which increased our ownership percentage above the threshold required to implement the equity method of accounting. The equity method of accounting requires the asset be recorded at fair value immediately prior to the purchase, requiring an upward adjustment to its basis.

The $1.6 million decrease in other income was due to $2.1 million in insurance recoveries in connection with the previously disclosed questioned banker activity in the linked quarter, compared to $483,000 in insurance recoveries in the current quarter.

The $1.3 million decrease in swap fee income was primarily due to a decrease in swap volume in the current quarter when compared to the linked quarter.

The $1.3 million increase in equity method investment income (loss) was primarily driven by an increase of $753,000 in Argent equity method investment income. Also contributing to the increase was a $481,000 upward adjustment in one limited partnership investment during the current quarter.

The components of equity method investment income are as follows:

 

Noninterest Expense

Noninterest expense for the quarter ended December 31, 2025, was $62.8 million, an increase of $795,000, or 1.3% from the linked quarter. The increase was primarily due to an increase of $1.3 million in professional services, partially offset by a decrease of $848,000 in salaries and employee benefits expense.

The $1.3 million increase in professional services was primarily driven by an increase of $590,000 in consultant expense related to technology contract renegotiations. Also contributing was a $586,000 and $129,000 increase in expense related to the previously disclosed questioned banker activity and borrower fraud, respectively.

The $848,000 decrease in salaries and employee benefits was driven by a $607,000 decrease in incentive compensation expense resulting from a downward accrual adjustment in the current quarter.

Financial Condition

Loans

  • Total LHFI at December 31, 2025, were $7.67 billion, an increase of $133.8 million, or 1.8%, from $7.54 billion at September 30, 2025, and an increase of $97.2 million, or 1.3%, compared to December 31, 2024.
  • Excluding MW LOC, LHFI increased $78.0 million, or 1.1%, from September 30, 2025. The increase was primarily driven by increases of $69.4 million and $17.9 million in commercial and industrial loans and owner-occupied commercial real estate loans, respectively. These increases were partially offset by a decrease of $16.1 million in single family residential real estate.

Securities

  • Total securities at December 31, 2025 were $1.13 billion, an increase of $12.4 million, or 1.1%, from $1.12 billion at September 30, 2025, and an increase of $13.8 million, or 1.2%, compared to December 31, 2024.
  • Accumulated other comprehensive loss, net of taxes, primarily associated with unrealized losses within the available for sale portfolio, was $54.1 million at December 31, 2025, a decrease of $7.0 million, or 11.5%, from the linked quarter and a decrease of $51.9 million, or 48.9%, from December 31, 2024.
  • The weighted average effective duration for the total securities portfolio was 4.15 years as of December 31, 2025, compared to 4.31 years as of September 30, 2025.

Deposits

  • Total deposits at December 31, 2025, were $8.31 billion, a decrease of $24.6 million, or 0.3%, compared to September 30, 2025, and an increase of $84.1 million, or 1.0%, from December 31, 2024. We sold $215.0 million of interest- bearing deposits on December 31, 2025, which were immediately repurchased on January 2, 2026. Excluding the impact of this sale, total deposits would have been $8.52 billion at December 31, 2025, reflecting an increase of $190.4 million, or 2.3%, compared to September 30, 2025.
  • At December 31, 2025, and September 30, 2025, noninterest-bearing deposits as a percentage of total deposits were 23.8% and 24.0%, respectively. At December 31, 2024, noninterest-bearing deposits as a percentage of total deposits were 23.1%.

Subordinate debentures

  • Total subordinated debentures at December 31, 2025, were $16.5 million, a decrease of $73.2 million from $89.7 million at September 30, 2025, and a decrease of $143.4 million compared to December 31, 2024.
  • The decrease was due to the redemption of $74.0 million in subordinated debentures in conjunction with our Optimize Origin initiative, as forecasted in our third quarter 2025 investor presentation. We recognized $783,000 in original issue discount amortization related to the redemption during the current quarter.

Conference Call

Origin will hold a conference call to discuss its fourth quarter and full year 2025 results on Thursday, January 29, 2026, at 8:00 a.m. Central Time (9:00 a.m. Eastern Time). To participate in the live conference call, please dial +1 (929) 272-1574 (U.S. Local / International 1); +1 (857) 999-3259 (U.S. Local / International 2); +1 (888) 700-7550 (U.S. Toll Free), enter Conference ID: 86485 and request to be joined into the Origin Bancorp, Inc. (OBK) call. A simultaneous audio-only webcast may be accessed via Origin’s website at www.origin.bank under the investor relations, News & Events, Events & Presentations link or directly by visiting https://dealroadshow.com/e/ORIGIN4Q25. If you are unable to participate during the live webcast, the webcast will be archived on the Investor Relations section of Origin’s website at www.origin.bank, under Investor Relations, News & Events, Events & Presentations. 5

About Origin

Origin Bancorp, Inc. is a financial holding company headquartered in Ruston, Louisiana. Origin’s wholly owned bank subsidiary, Origin Bank, was founded in 1912 in Choudrant, Louisiana. Deeply rooted in Origin’s history is a culture committed to providing personalized relationship banking to businesses, municipalities, and personal clients to enrich the lives of the people in the communities it serves. Origin provides a broad range of financial services and currently operates more than 56 locations in Dallas/Fort Worth, East Texas, Houston, North Louisiana, Mississippi, South Alabama and the Florida Panhandle. In addition, Origin provides a broad range of insurance agency products and services through its wholly owned insurance agency subsidiary, Forth Insurance, LLC. For more information, visit www.origin.bank and www.forthinsurance.com.

Non-GAAP Financial Measures

Origin reports its results in accordance with generally accepted accounting principles in the United States of America ("GAAP"). However, management believes that certain supplemental non-GAAP financial measures may provide meaningful information to investors that is useful in understanding Origin's results of operations and underlying trends in its business. However, non-GAAP financial measures are supplemental and should be viewed in addition to, and not as an alternative for, Origin's reported results prepared in accordance with GAAP. The following are the non-GAAP measures used in this release: PTPP earnings, PTPP ROAA, tangible book value per common share, ROATCE, and core efficiency ratio.

Please see the last few pages of this release for reconciliations of non-GAAP measures to the most directly comparable financial measures calculated in accordance with GAAP.

Forward-Looking Statements

This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include information regarding Origin Bancorp, Inc’s (“Origin”, “we”, “our” or the “Company”) future financial performance, business and growth strategies, projected plans and objectives, and any expected purchases of its outstanding common stock, and related transactions and other projections based on macroeconomic and industry trends, including changes to interest rates by the Federal Reserve and the resulting impact on Origin’s results of operations, estimated forbearance amounts and expectations regarding the Company’s liquidity, including in connection with advances obtained from the FHLB, which are all subject to change and may be inherently unreliable due to the multiple factors that impact broader economic and industry trends, and any such changes may be material. Such forward-looking statements are based on various facts and derived utilizing important assumptions and current expectations, estimates and projections about Origin and its subsidiaries, any of which may change over time and some of which may be beyond Origin’s control. Statements or statistics preceded by, followed by or that otherwise include the words “assumes,” “anticipates,” “believes,” “estimates,” “expects,” “foresees,” “intends,” “plans,” “projects,” and similar expressions or future or conditional verbs such as “could,” “may,” “might,” “should,” “will,” and “would” and variations of such terms are generally forward-looking in nature and not historical facts, although not all forward-looking statements include the foregoing words. Further, certain factors that could affect Origin’s future results and cause actual results to differ materially from those expressed in the forward-looking statements include, but are not limited to: (1) the impact of current and future economic conditions generally and in the financial services industry, nationally and within Origin’s primary market areas, including the impact of tariffs, as well as the financial stress on borrowers and changes to customer and client behavior as a result of the foregoing; (2) changes in benchmark interest rates and the resulting impacts on net interest income; (3) deterioration of Origin’s asset quality; (4) factors that can impact the performance of Origin’s loan portfolio, including real estate values and liquidity in Origin’s primary market areas; (5) the financial health of Origin’s commercial borrowers and the success of construction projects that Origin finances; (6) changes in the value of collateral securing Origin’s loans; (7) the impact of generative artificial intelligence; (8) Origin’s ability to anticipate interest rate changes and manage interest rate risk; (9) the impact of heightened regulatory requirements, reduced debit interchange and overdraft income and the possibility of facing related adverse business consequences if our total assets grow in excess of $10 billion as of December 31 of any calendar year; (10) the effectiveness of Origin’s risk management framework and quantitative models; (11) Origin’s inability to receive dividends from Origin Bank and to service debt, pay dividends to Origin’s common stockholders, repurchase Origin’s shares of common stock and satisfy obligations as they become due; (12) the impact of labor pressures; (13) changes in Origin’s operation or expansion strategy or Origin’s ability to prudently manage its growth and execute its strategy; (14) changes in management personnel; (15) Origin’s ability to maintain important customer relationships, reputation or otherwise avoid liquidity risks; (16) increasing costs as Origin grows deposits; (17) operational risks associated with Origin’s business; (18) significant turbulence or a disruption in the capital or financial markets and the effect of market disruption and interest rate volatility on our investment securities; (19) increased competition in the financial services industry, particularly from regional and national institutions, as well as from fintech companies; (20) compliance with governmental and regulatory requirements and changes in laws, rules, regulations, interpretations or policies relating to financial institutions; (21) periodic changes to the extensive body of accounting rules and best practices; (22) further government intervention in the U.S. financial system; (23) a deterioration of the credit rating for U.S. long-term sovereign debt; (24) Origin’s ability to comply with applicable capital and liquidity requirements, including its ability to generate liquidity internally or raise capital on favorable terms, including continued access to the debt and equity capital markets; (25) natural disasters and other adverse weather events, pandemics, acts of terrorism, war, and other matters beyond Origin’s control; (26) developments in our mortgage banking business, including loan modifications, general demand, and the effects of judicial or regulatory requirements or guidance; (27) fraud or misconduct by internal or external actors (including Origin employees); (28) cybersecurity threats or security breaches and the cost of defending against them; (29) Origin’s ability to maintain adequate internal controls over financial and non-financial reporting; and (30) potential claims, damages, penalties, fines, costs and reputational damage resulting from pending or future litigation, regulatory proceedings and enforcement actions. For a discussion of these and other risks that may cause actual results to differ from expectations, please refer to the sections titled “Cautionary Note Regarding Forward-Looking Statements” and “Risk Factors” in Origin’s most recent and future Annual Reports on Form 10-K filed with the Securities and Exchange Commission and any updates to those sections set forth in Origin’s subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. If one or more events related to these or other risks or uncertainties materialize, or if Origin’s underlying assumptions prove to be incorrect, actual results may differ materially from what Origin anticipates. Accordingly, you should not place undue reliance on any forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made, and Origin does not undertake any obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise.

New risks and uncertainties arise from time to time, and it is not possible for Origin to predict those events or how they may affect Origin. In addition, Origin cannot assess the impact of each factor on Origin’s business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. All forward-looking statements, expressed or implied, included in this communication are expressly qualified in their entirety by this cautionary statement. This cautionary statement should also be considered in connection with any subsequent written or oral forward-looking statements that Origin or persons acting on Origin’s behalf may issue. Annualized, pro forma, adjusted, projected, and estimated numbers are used for illustrative purposes only, are not forecasts, and may not reflect actual results.

This press release contains projected financial information with respect to Origin, including with respect to certain goals and strategic initiatives of Origin and the anticipated benefits thereof. This projected financial information constitutes forward-looking information and is for illustrative purposes only and should not be relied upon as necessarily being indicative of future results. The assumptions and estimates underlying such projected financial information are inherently uncertain and are subject to significant business, economic (including interest rate), competitive, and other risks and uncertainties. Actual results may differ materially from the results contemplated by the projected financial information contained herein and the inclusion of such projected financial information in this release should not be regarded as a representation by any person that such actions will be taken or accomplished or that the results reflected in such projected financial information with respect thereto will be achieved.

Contact:

Investor Relations

Chris Reigelman, 318-497-3177, chris@origin.bank

Media Contact

Ryan Kilpatrick, 318-232-7472, rkilpatrick@origin.bank