Origin Bancorp, Inc.

Previous wording

In January 2025, we announced our initiative to drive elite financial performance and enhance our award-winning culture.

Current wording

In January 2025, we announced our Optimize Origin initiative to drive elite financial performance and enhance our award-winning culture.

Previous wording

•Near term target is being achieved in part by branch consolidation, headcount reduction, securities optimization, capital optimization, cash/liquidity management, mortgage restructuring, as well as other opportunistic efficiency optimizations throughout the organization.

Current wording

•In pursuit of our near term target, we have executed, or are executing, various strategic initiatives, including branch consolidation, headcount reduction, securities optimization, capital optimization, cash/liquidity management, mortgage restructuring, as well as other opportunistic efficiency optimizations throughout the organization.

Previous wording

•We believe the actions we have taken will drive earnings improvement of approximately $23.4 million annually on a pre-tax pre-provision basis.

Current wording

•We believe the actions we have taken will drive earnings improvement of approximately $34.2 million annually on a pre-tax pre-provision basis.

Previous wording

•Net interest income was $78.5 million for three months ended March 31, 2025, reflecting an increase of $5.1 million, or 7.0%, compared to the three months ended March 31, 2024.

Current wording

•Net interest income was $82.1 million for three months ended June 30, 2025, reflecting an increase of $8.2 million, or 11.2%, compared to the three months ended June 30, 2024.

Previous wording

•Our fully tax equivalent net interest margin (“NIM-FTE”) increased 25 basis points for the quarter ended March 31, 2025, compared to the quarter ended March 31, 2024. This expansion was driven primarily by a 58 basis point reduction in rates paid on interest-bearing liabilities, offset by a 20 basis point decline in our yield earned on interest-earning assets.

Current wording

•Our fully tax equivalent net interest margin (“NIM-FTE”) increased 44 basis points for the quarter ended June 30, 2025, compared to the quarter ended June 30, 2024. This expansion was driven primarily by a 73 basis point reduction in rates paid on interest-bearing liabilities, offset by a 17 basis point decline in our yield earned on interest-earning assets.

Previous wording

•Book value per common share was $37.77 at March 31, 2025, reflecting an increase of $1.06, or 2.9%, compared to December 31, 2024.

Current wording

•Book value per common share was $38.62 at June 30, 2025, reflecting an increase of $1.91, or 5.2%, compared to December 31, 2024.

Previous wording

Our net income decreased $221,000, or 1.0%, to $22.4 million for the three months ended March 31, 2025, from $22.6 million for the three months ended March 31, 2024. On a diluted EPS basis, we reported $0.71 per share for the three months ended March 31, 2025, compared to $0.73 per share for the three months ended March 31, 2024.

Current wording

Our net income decreased $6.3 million, or 30.2%, to $14.6 million for the three months ended June 30, 2025, from $21.0 million for the three months ended June 30, 2024. On a diluted EPS basis, we reported $0.47 per share for the three months ended June 30, 2025, compared to $0.67 per share for the three months ended June 30, 2024.

Previous wording

Net interest income for the three months ended March 31, 2025, was $78.5 million, an increase of $5.1 million, or 7.0%, compared to the three months ended March 31, 2024. The increase was primarily due to an $11.3 million decrease in interest expense, partially offset by a $6.2 million decrease in total interest income during the three months ended March 31, 2025, compared to three months ended March 31, 2024.

Current wording

Net interest income for the three months ended June 30, 2025, was $82.1 million, an increase of $8.2 million, or 11.2%, compared to the three months ended June 30, 2024. The increase was primarily due to an $15.4 million decrease in interest expense, partially offset by a $7.2 million decrease in total interest income during the three months ended June 30, 2025, compared to three months ended June 30, 2024.

Previous wording

Interest expense on total interest-bearing deposits decreased by $11.1 million, with $8.9 million of the decrease attributable to lower interest rates, which excludes the day count impact, during the three months ended March 31, 2025, compared to the three months ended March 31, 2024. The average rate on interest-bearing deposits declined 62 basis points to 3.23% for the three months ended March 31, 2025, from 3.85% for the three months ended March 31, 2024.

Current wording

Interest expense on total interest-bearing deposits decreased by $15.3 million, with $10.6 million of the decrease attributable to lower interest rates during the three months ended June 30, 2025, compared to the three months ended June 30, 2024. The average rate on interest-bearing deposits declined 75 basis points to 3.20% for the three months ended June 30, 2025, from 3.95% for the three months ended June 30, 2024. The remaining decrease in interest expense was driven by a $386.8 million decline in the average interest-bearing deposits balance. A reduction of $666.0 million in the average time deposits balance contributed $7.4 million to the decrease in interest expense, partially offset by a $279.1 million increase in average savings and interest-bearing transaction accounts balance, which added approximately $2.6 million to the total interest expense.

Previous wording

Interest income earned on LHFI decreased by $10.1 million during the three months ended March 31, 2025, compared to the three months ended March 31, 2024, with $5.8 million, $3.0 million and $1.3 million due to lower average LHFI balances, lower yields and one less calendar day. Decreases in average loan balances accounted for $3.1 million and $2.3 million of the decrease in interest income earned on real estate loans and commercial and industrial loans for the comparable periods, respectively. Decreases in interest rates drove $2.5 million of the decrease in interest income earned on commercial and industrial loans. The decrease in interest income earned on LHFI was partially offset by increases of $2.8 million and $1.3 million in interest income earned on interest-earning balances due from banks and investment securities. The $2.8 million increase in interest income on interest-earning balances due from banks was primarily driven by a $4.0 million increase in the average balances, partially offset by a $1.2 million decrease in interest income due to yield. The increase in interest income earned on investment securities was primarily driven by the bond portfolio optimization strategy we executed during the quarter ended December 31, 2024, in which we replaced securities with a total book value of $188.2 million and a weighted average yield of 1.51% with new security purchases totaling $173.7 million with a weighted average yield of 5.22%.

Current wording

Interest income earned on LHFI decreased by $8.6 million during the three months ended June 30, 2025, compared to the three months ended June 30, 2024, with $4.8 million and $3.8 million due to lower average LHFI balances and lower yields, respectively. Decreases in average loan balance was mainly due to decreases of $5.5 million, $1.3 million and $1.2 million in construction/land/land development, commercial real estate and commercial and industrial loans, respectively, partially offset by a $2.3 million increase in residential real estate loans, for the comparable periods. Decreases in interest rates drove $2.9 million of the decrease in interest income earned on commercial and industrial loans. The decrease in interest income earned on LHFI was partially offset by an increase of $1.6 million in interest income earned on investment securities, which was primarily driven by improved yields as the result of the bond portfolio optimization strategy we executed beginning in the fourth quarter of 2024 in conjunction with our Optimize Origin initiative.

Previous wording

The Federal Reserve Board (“FRB”) sets various benchmark rates, including the federal funds rate, and thereby influences the general market rates of interest, including the loan and deposit rates offered by financial institutions. The federal funds target rate range was reduced by 50 basis points on September 18, 2024, to a range of 4.75% to 5.00%, the first rate reduction since early 2020. Prior to this movement, the fed funds rate was at a 23-year high. Subsequent reductions in November and December 2024 resulted in a range of 4.25% to 4.50% as of December 31, 2024. The Federal Reserve maintained this target range throughout the first quarter of 2025. In total, the federal funds target range has decreased 100 basis points from its recent cycle high.

Current wording

The Federal Reserve Board sets various benchmark rates, including the federal funds rate, and thereby influences the general market rates of interest, including the loan and deposit rates offered by financial institutions. On September 18, 2024, the Federal Reserve reduced the federal funds target rate range by 50 basis points, to a range of 4.75% to 5.00%, marking the first rate reduction since early 2020. Subsequently, it implemented two additional reductions, with the current federal funds target range set to 4.25% to 4.50% on December 18, 2024. In total, the federal funds target range has decreased 100 basis points from its recent cycle high.

Previous wording

The NIM-FTE was 3.44% for the three months ended March 31, 2025, a 25-basis point increase from 3.19% for the three months ended March 31, 2024. The improvement was mainly driven by a wider interest rate spread, as the 58-basis-point decline in the average rate on total interest-bearing liabilities exceeded the 20-basis-point decline in the yield earned on interest-earning assets for the three months ended March 31, 2025, compared to the three months ended March 31, 2024. The average rate on total interest-bearing liabilities for the three months ended March 31, 2025, was 3.30%, compared to 3.88% for the three months ended March 31, 2024. The average yield earned on total interest-earning assets for the three months ended March 31, 2025, was 5.79%, compared to 5.99% for the three months ended March 31, 2024.

Current wording

The NIM-FTE was 3.61% for the three months ended June 30, 2025, a 44-basis point increase from 3.17% for the three months ended June 30, 2024. The improvement was mainly driven by an expanding interest rate spread, as the 73-basis-point decline in the average cost of total interest-bearing liabilities exceeded the 17-basis-point decline in the yield earned on interest-earning assets for the three months ended June 30, 2025, compared to the three months ended June 30, 2024. The average rate on total interest-bearing liabilities for the three months ended June 30, 2025, was 3.25%, compared to 3.98% for the three months ended June 30, 2024. The average yield earned on total interest-earning assets for the three months ended June 30, 2025, was 5.87%, compared to 6.04% for the three months ended June 30, 2024.

Previous wording

Net charge-offs increased $146,000, to $2.7 million for the three months ended March 31, 2025, from $2.6 million for the three months ended March 31, 2024. The allowance for loan credit losses (“ALCL”) to nonperforming LHFI was 113.08% at March 31, 2025, compared to 243.27% at March 31, 2024, primarily driven by an increase of $40.9 million in our nonperforming LHFI compared to March 31, 2024, with $28.7 million of the increase primarily driven by the questioned loan activity described in Part I, Item 1, Note 12 — Commitments and Contingencies under Loss Contingencies. Net charge-offs to total average LHFI (annualized) increased to 0.15% for the three months ended March 31, 2025, from 0.13% for the three months ended March 31, 2024, due to slightly higher net charge-offs during the three months ended March 31, 2025.

Current wording

Net charge-offs decreased $646,000, to $2.3 million for the three months ended June 30, 2025, from $2.9 million for the three months ended June 30, 2024. The allowance for loan credit losses (“ALCL”) to nonperforming LHFI was 108.33% at June 30, 2025, compared to 133.05% at June 30, 2024 primarily driven by an increase of $9.5 million in our nonperforming LHFI compared to June 30, 2024. This increase in nonperforming LHFI resulted from $35.9 million from twelve loan relationships placed on non-performing status subsequent to June 30, 2024, partially offset by the resolution of six commercial and industrial loan relationships totaling $20.2 million that exited non-performing status through pay-off, pay-down or charge-off activities during the intervening period. The increase was further offset by $6.5 million in principal pay-downs on certain loan relationships that were placed on non-accrual status in the prior year as a result of the discovery of the questioned loan activity. Net charge-offs to total average LHFI (annualized) decreased to 0.12% for the three months ended June 30, 2025, from 0.15% for the three months ended June 30, 2024, due to higher loan recoveries during the three months ended June 30, 2025.

Previous wording

Limited partnership investment (loss) income. The $1.8 million decrease in limited partnership investment (loss) income was primarily due to $1.6 million in fair value adjustments on multiple limited partnership investments during the three months ended March 31, 2025, with no comparable amount realized during the three months ended March 31, 2024.

Current wording

Limited partnership investment (loss) income. The $2.0 million decrease in limited partnership investment (loss) income was primarily due to $1.7 million in fair value adjustments on one limited partnership investment during the three months ended June 30, 2025, with no comparable amount realized during the three months ended June 30, 2024.

Previous wording

Regulatory assessments. The $342,000 decrease in regulatory assessments was driven primarily by our improved risk-based pricing loan mix adjustment during the three months ended March 31, 2025, compared to the three months ended March 31, 2024.

Current wording

Regulatory assessments. The $497,000 decrease in regulatory assessment expense was primarily driven by our improved risk-based pricing loan mix adjustment during the three months ended June 30, 2025, compared to the three months ended June 30, 2024.

Previous wording

Loan-related expenses. The $306,000 decrease in loan-related expenses was primarily due to a decrease of $231,000 in loan subservicing costs during the three months ended March 31, 2025, compared to the three months ended March 31, 2024, primarily due to the sale of the majority of our MSR during 2024.

Current wording

Loan-related expenses. The $408,000 decrease in loan-related expense was primarily due to a decrease of $133,000 and $119,000 in loan subservicing costs and loan related legal fees during the three months ended June 30, 2025, compared to the three months ended June 30, 2024.

Previous wording

Mortgage banking revenue. The $1.5 million decrease in mortgage banking revenue was primarily due to decreases of $654,000, $450,000 and $410,000 in servicing revenue, MSR asset valuation adjustments, net and gain on sale of MSR asset, respectively, during the three months ended March 31, 2025, compared to the three months ended March 31, 2024. These decreases were offset by an increase of $479,000 in MSR asset hedge impact. Majority of these drivers are primarily due the sale of substantially all of our MSR asset during the three months ended March 31, 2024.

Current wording

Mortgage banking revenue. The $2.0 million decrease in mortgage banking revenue compared to the six months ended June 30, 2024, was primarily due to decreases of $735,000, $450,000 and $410,000 in servicing revenue, MSR asset valuation adjustments, net and gain on sale of MSR asset, respectively, during the six months ended June 30, 2025, compared to the six months ended June 30, 2024. These decreases were offset by an increase of $480,000 in the MSR asset hedge impact. Majority of these drivers are primarily due to the sale of substantially all of our MSR asset during the six months ended June 30, 2024.

Previous wording

Noninterest expense for the three months ended March 31, 2025, increased by $3.4 million, or 5.7%, to $62.1 million, compared to $58.7 million for the three months ended March 31, 2024, primarily due to increases of $1.9 million in both salaries and employee benefits and net occupancy and equipment expenses, respectively, and an increase of $470,000 in office and operations expense. These increases were partially offset by decreases of $376,000, $342,000, $311,000 and $306,000 in intangible asset amortization, regulatory assessments, advertising and marketing and loan-related expenses, respectively.

Current wording

Noninterest expense for the six months ended June 30, 2025, increased by $956,000, or 0.8%, to $124.1 million, compared to $123.1 million for the six months ended June 30, 2024, primarily due to increases of $2.1 million, $2.1 million and $735,000 in salaries and employee benefits, occupancy and equipment, net and office and operations expenses, respectively. These increases were partially offset by decreases of $1.2 million, $839,000, $745,000 and $714,000 in other expense, regulatory assessments, intangible asset amortization and loan-related expenses, respectively.

Previous wording

Salaries and employee benefits. The $1.9 million increase in salaries and employee benefits expenses was primarily due to an increase of $1.3 million in incentive compensation bonuses for the three months ended March 31, 2025, compared to the three months ended March 31, 2024. Also contributing to the increase were our annual merit increases and a $314,000 increase in medical costs.

Current wording

Salaries and employee benefits. The $2.1 million increase in salaries and employee benefits expense was primarily driven by an increase of $1.1 million in incentive compensation bonuses for the six months ended June 30, 2025, compared to the six months ended June 30, 2024. Also contributing to the increase was an increase of $902,000 in medical costs.

Previous wording

Occupancy and equipment, net. The $1.9 million increase in occupancy and equipment, net expense was primarily due to a $1.5 million increase in expense associated with the accounting for our strategic profitability initiative which included the consolidation of eight banking centers, six of which closed during the three months ended March 31, 2025. Also contributing to the increase was higher depreciation expense related to normal furniture, fixtures, and equipment purchases.

Current wording

Occupancy and equipment, net. The $2.1 million increase in occupancy and equipment, net was primarily due to an increase in expense associated with the accounting for our branch consolidation during the six months ended June 30, 2025, as a part of our Optimize Origin initiative.

Previous wording

Office and operations. The $470,000 increase in office and operations expense was primarily due to an increase of $328,000 in check and card fraud and card disputes primarily due to larger volume of transactions during the three months ended March 31, 2025, compared to the three months ended March 31, 2024.

Current wording

Office and operations. The $735,000 increase in office and operations expense was primarily related to a $387,000 increase in check and card fraud and a $228,000 increase in business development costs during the six months ended June 30, 2025.

Previous wording

Intangible asset amortization. The $376,000 decrease in intangible asset amortization was primarily due to the accelerated amortization method used to measure the amortization expense of the assets, as well as certain intangible assets that were fully amortized during 2024.

Current wording

Intangible asset amortization. The $745,000 decrease in intangible asset amortization is primarily due to the accelerated amortization method used to measure the amortization expense of the assets, as well as certain intangible assets that were fully amortized during the six months ended June 30, 2024.

Previous wording

Total liabilities increased by $36.7 million, or 0.4%, to $8.57 billion at March 31, 2025, from $8.53 billion at December 31, 2024. Total deposits increased by $115.3 million, or 1.4%, to $8.34 billion at March 31, 2025, from $8.22 billion at December 31, 2024, primarily due to an increase of $278.9 million in money market deposits, which was partially offset by decreases of $78.0 million and $67.1 million in time deposits (excluding brokered time deposits) and interest-bearing demand deposits, respectively. Subordinated debentures decreased $70.3 million, or 44.0%, to $89.6 million at March 31, 2025, from $159.9 million at December 31, 2024, as we redeemed eligible subordinated debentures as part of Optimize Origin.

Current wording

Total liabilities decreased by $61.1 million, or 0.7%, to $8.47 billion at June 30, 2025, from $8.53 billion at December 31, 2024. Total deposits decreased by $100.1 million, or 1.2%, to $8.12 billion at June 30, 2025, from $8.22 billion at December 31, 2024, primarily due to decreases of $226.1 million, $135.4 million and $59.0 million in interest-bearing demand deposits, time deposits (excluding brokered time deposits) and noninterest-bearing deposits, respectively, primarily as a result of the seasonality of our public fund deposit balances. These decreases were partially offset by an increase of $371.5 million in money market deposits. Subordinated debentures decreased $70.3 million, or 43.9%, to $89.7 million at June 30, 2025, from $159.9 million at December 31, 2024, as we redeemed eligible subordinated debentures as part of our Optimize Origin initiative. FHLB advances and other borrowings increased $115.4 million to $127.8 million at June 30, 2025, from $12.5 million at December 31, 2024.

Previous wording

Our loan portfolio is our largest category of interest-earning assets, and interest income earned on our loan portfolio is our primary source of income. At March 31, 2025, 73.9% of the loan portfolio held for investment was comprised of commercial and industrial loans, including mortgage warehouse lines of credit, commercial real estate and construction/land/land development loans, which were primarily originated within our legacy market areas of Texas, North Louisiana, and Mississippi, compared to 75.2% at December 31, 2024.

Current wording

Our loan portfolio is our largest category of interest-earning assets, and interest income earned on our loan portfolio is our primary source of income. At June 30, 2025, 73.7% of the loan portfolio held for investment was comprised of commercial and industrial loans, including mortgage warehouse lines of credit, commercial real estate and construction/land/land development loans, which were primarily originated within our legacy market areas of Texas, North Louisiana, and Mississippi, compared to 75.2% at December 31, 2024.

Previous wording

(1)Includes owner-occupied CRE of $938.0 million and $975.9 million at March 31, 2025 and December 31, 2024, respectively.

Current wording

(1)Includes owner-occupied commercial real estate of $972.8 million and $975.9 million at June 30, 2025 and December 31, 2024, respectively.

Previous wording

At March 31, 2025, total LHFI were $7.59 billion, an increase of $11.8 million, or 0.2%, compared to $7.57 billion at December 31, 2024. The increase was primarily driven by growth of $97.4 million and $55.1 million in residential real estate loans and mortgage warehouse lines of credit, respectively. This was partially offset by decreases of $93.6 million and $65.4 million in CRE loans and construction/land/land development loans, respectively. Total LHFI at March 31, 2025, excluding mortgage warehouse lines of credit, were $7.18 billion, reflecting a decrease of $43.2 million, or 0.6%, compared to December 31, 2024.

Current wording

At June 30, 2025, total LHFI were $7.68 billion, an increase of $110.7 million, or 1.5%, compared to $7.57 billion at December 31, 2024. The increase was primarily driven by growth of $225.7 million and $137.8 million in mortgage warehouse lines of credit and residential real estate loans, respectively. This was partially offset by decreases of $210.3 million and $48.9 million in construction/land/land development loans and commercial real estate loans, respectively. Total LHFI at June 30, 2025, excluding mortgage warehouse lines of credit, were $7.11 billion, reflecting a decrease of $114.9 million, or 1.6%, compared to December 31, 2024.

Previous wording

A significant portion, 31.4%, of our LHFI portfolio at March 31, 2025, consisted of CRE loans secured by real estate properties. Such loans can involve high principal loan amounts, and the repayment of these loans is dependent, in large part, on a borrower’s ongoing business operations or on income generated from the properties that are leased to third parties.

Current wording

A significant portion, 31.5%, of our LHFI portfolio at June 30, 2025, consisted of commercial real estate loans secured by real estate properties. Such loans can involve high principal loan amounts, and the repayment of these loans is dependent, in large part, on a borrower’s ongoing business operations or on income generated from the properties that are leased to third parties.

Previous wording

The table below sets forth the CRE loan portfolio, by portfolio industry sector and collateral location as of March 31, 2025.

Current wording

The table below sets forth the commercial real estate loan portfolio, by portfolio industry sector and collateral location as of June 30, 2025.

Previous wording

Purchased loans that have experienced more than insignificant credit deterioration since origination are purchased credit deteriorated (“PCD”) loans. The Company evaluates acquired loans for deterioration in credit quality based on any of, but not limited to, the following: (1) nonaccrual status; (2) borrowers are experiencing financial difficulty which results in modification to the loan terms; (3) risk ratings of special mention, substandard or doubtful; (4) watchlist credits; and (5) delinquency status, including loans that are current on merger/acquisition date, but had previously been 60 days delinquent twice. An allowance for credit losses is determined using the same methodology as other individually evaluated loans. Subsequent changes to the allowance for credit losses are recorded through the provision for credit losses. We held approximately $8.0 million of unpaid principal balance PCD loans at March 31, 2025, and $12.3 million of unpaid principal balance PCD loans at December 31, 2024.

Current wording

Purchased loans that have experienced more than insignificant credit deterioration since origination are purchased credit deteriorated (“PCD”) loans. The Company evaluates acquired loans for deterioration in credit quality based on any of, but not limited to, the following: (1) nonaccrual status; (2) borrowers are experiencing financial difficulty which results in modification to the loan terms; (3) risk ratings of special mention, substandard or doubtful; (4) watchlist credits; and (5) delinquency status, including loans that are current on merger/acquisition date, but had previously been 60 days delinquent twice. An allowance for credit losses is determined using the same methodology as other individually evaluated loans. Subsequent changes to the allowance for credit losses are recorded through the provision for credit losses. We held approximately $5.7 million of unpaid principal balance PCD loans at June 30, 2025, and $12.3 million of unpaid principal balance PCD loans at December 31, 2024.

Previous wording

Nonperforming LHFI increased $6.4 million at March 31, 2025, compared to December 31, 2024, and nonperforming LHFI to LHFI increased to 1.07% compared to 0.99%. The increase in nonperforming loans was primarily driven by two loan relationships totaling $8.2 million at March 31, 2025, with residential real estate loans totaling $5.1 million of the increase. The increase in nonperforming loans was partially offset by one residential real estate loan relationship totaling $2.1 million that paid off during the current quarter but was considered nonperforming at December 31, 2024. Please see Note 4 — Loans to our consolidated financial statements contained in Part I, Item 1 of this report for more information on nonperforming loans.

Current wording

Nonperforming LHFI increased $10.3 million at June 30, 2025, compared to December 31, 2024, and nonperforming LHFI to LHFI increased to 1.11% compared to 0.99%. The increase in nonperforming loans was primarily driven by six loan relationships totaling $17.3 million at June 30, 2025, with commercial real estate loans totaling $8.3 million of the increase. The increase in nonperforming loans was partially offset by decreases relating to one construction/land/land development loan and one residential real estate loan relationship totaling $2.5 million and $2.1 million, respectively. Of the total decrease, $2.1 million was due to loan payoffs, while the remaining was due to partial principal paydowns as a result of a workout agreement while the loan relationship remains nonperforming. Please see Note 4 — Loans to our consolidated financial statements contained in Part I, Item 1 of this report for more information on nonperforming loans.

Previous wording

The ALCL to nonperforming LHFI decreased to 113.08% at March 31, 2025, compared to 121.41% at December 31, 2024, primarily driven by an increase of $6.4 million in the Company’s nonperforming LHFI as explained in the preceding Nonperforming Assets section, during the three months ended March 31, 2025.

Current wording

The ALCL to nonperforming LHFI decreased to 108.33% at June 30, 2025, compared to 121.41% at December 31, 2024, primarily driven by an increase of $10.3 million in the Company’s nonperforming LHFI as explained in the preceding Nonperforming Assets section, during the six months ended June 30, 2025.

Previous wording

Our securities portfolio totaled $1.18 billion at March 31, 2025, representing an increase of $58.8 million, or 5.3%, from $1.12 billion at December 31, 2024. The increase was primarily driven by new purchases, along with an improvement in the unrealized loss position, partially offset by normal principal paydowns, maturities and calls during the three months ended March 31, 2025.

Current wording

Our securities portfolio totaled $1.14 billion at June 30, 2025, representing an increase of $23.9 million, or 2.1%, from $1.12 billion at December 31, 2024. The net increase reflects the combined effect of new purchases, sales, calls, maturities, principal paydowns, and activities related to our bond portfolio optimization strategy executed during the six months ended June 30, 2025.

Previous wording

Our available for sale portfolio totaled $1.16 billion at March 31, 2025, and represented 98.5% of our total security portfolio and is comprised of 54.4% mortgage-backed, 22.1% municipal, 15.8% collateralized mortgage obligations, 6.6% corporate and 1.1% treasury/agency securities. Our available for sale portfolio totaled $1.10 billion at December 31, 2024, and represented 98.4% of our total security portfolio and is comprised of 53.0% mortgage-backed, 23.2% municipal, 15.4% collateralized mortgage obligations, 7.1% corporate/asset-backed and 1.3% treasury/agency securities.

Current wording

Our available for sale portfolio totaled $1.13 billion at June 30, 2025, and represented 98.5% of our total security portfolio and is comprised of 42.1% mortgage-backed, 25.2% municipal, 25.5% collateralized mortgage obligations, 6.9% corporate and 0.3% treasury/agency securities. Our available for sale portfolio totaled $1.10 billion at December 31, 2024, and represented 98.4% of our total security portfolio and is comprised of 53.0% mortgage-backed, 23.2% municipal, 15.4% collateralized mortgage obligations, 7.1% corporate/asset-backed and 1.3% treasury/agency securities.

Previous wording

The securities portfolio had a weighted average effective duration of 4.10 years at March 31, 2025, compared to 4.46 years at December 31, 2024. For additional information regarding our securities portfolio, please see Note 3 — Securities in the condensed notes to our consolidated financial statements contained in Part I, Item 1 of this report.

Current wording

The securities portfolio had a weighted average effective duration of 4.52 years at June 30, 2025, compared to 4.46 years at December 31, 2024. For additional information regarding our securities portfolio, please see Note 3 — Securities in the condensed notes to our consolidated financial statements contained in Part I, Item 1 of this report.

Previous wording

Total deposits increased at March 31, 2025, compared to December 31, 2024, with an increase of $278.9 million in money market deposits, offset by decreases in all remaining categories, including reductions of $78.0 million, $67.1 million and $30.2 million in time deposits, interest-bearing demand, and brokered deposits, respectively. Typically, higher market interest rates and sustained inflation will cause customers to move liquid asset balances into higher interest-earning vehicles such as money market funds.

Current wording

Total deposits decreased $100.1 million, or 1.2%, at June 30, 2025, compared to December 31, 2024, with decreases of $226.1 million and $135.4 million in interest-bearing demand and time deposits, respectively, offset by a $371.5 million increase in money market deposits. Typically, higher market interest rates and sustained inflation will cause customers to move liquid asset balances into higher interest-earning vehicles such as money market funds.

Previous wording

(1)At March 31, 2025, brokered deposits included brokered time deposits of $50.0 million. At December 31, 2024, brokered deposits included brokered time deposits and brokered interest-bearing demand of $80.0 million and $236,000, respectively.

Current wording

(1)At June 30, 2025, brokered deposits included brokered time deposits of $25.0 million. At December 31, 2024, brokered deposits included brokered time deposits and brokered interest-bearing demand of $80.0 million and $236,000, respectively.

Previous wording

(1)Average brokered deposits include average brokered time deposits and average brokered interest-bearing demand of $60.1 million and $3,000, respectively, for the three months ended March 31, 2025. Average brokered deposits included average brokered time deposits of $559.9 million and for the three months ended March 31, 2024.

Current wording

(1)Average brokered deposits include average brokered time deposits and average brokered interest-bearing demand of $46.3 million and $1,000, respectively, for the six months ended June 30, 2025. Average brokered deposits include average brokered time deposits and average brokered interest-bearing demand of $540.4 million and $41.2 million, respectively, for the six months ended June 30, 2024.

Previous wording

Our average deposit balances were $8.35 billion for the three months ended March 31, 2025, a decrease of $91.4 million, or 1.1%, from $8.44 billion for the three months ended March 31, 2024. The average rate paid on our interest-bearing deposits for the three months ended March 31, 2025, was 3.23%, compared to 3.85% for the three months ended March 31, 2024.

Current wording

Our average deposit balances were $8.25 billion for the six months ended June 30, 2025, a decrease of $246.0 million, or 2.9%, from $8.50 billion for the six months ended June 30, 2024. The average rate paid on our interest-bearing deposits for the six months ended June 30, 2025, was 3.21%, compared to 3.90% for the six months ended June 30, 2024.

Previous wording

Average noninterest-bearing deposits during the three months ended March 31, 2025, were $1.84 billion, compared to $1.87 billion at March 31, 2024, a decrease of $29.1 million, or 1.6%, and represented 22.0% and 22.1% of average total deposits for the three months ended March 31, 2025 and 2024, respectively. Noninterest-bearing deposits have been impacted by the recent higher interest rate environment, as customers moved out of noninterest-bearing deposit balances into higher interest-earning investments, however, this trend changed direction during the quarter ended September 30, 2024, as rates began to stabilize.

Current wording

Average noninterest-bearing deposits during the six months ended June 30, 2025, were $1.86 billion, compared to $1.88 billion for the six months ended June 30, 2024, a decrease of $20.9 million, or 1.1%, and represented 22.5% and 22.1% of average total deposits for the six months ended June 30, 2025 and 2024, respectively. Noninterest-bearing deposits have been impacted by the recent higher interest rate environment, as customers moved out of noninterest-bearing deposit balances into higher interest-earning investments, however, this trend changed direction during the quarter ended September 30, 2024, as rates began to stabilize.

Previous wording

The estimated total amount of uninsured deposits at March 31, 2025, and December 31, 2024, was $3.72 billion and $3.66 billion, respectively, including $822.0 million and $862.9 million in public fund deposits collateralized by pledges assets, respectively.

Current wording

The estimated total amount of uninsured deposits at June 30, 2025, and December 31, 2024, was $3.73 billion and $3.66 billion, respectively, including $830.2 million and $862.9 million in public fund deposits collateralized by pledges assets, respectively.