Origin Bancorp, Inc.
For the period ended Sep 30, 2025. Filed Nov 5, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2025 · Filed Nov 5, 2025
OBK$53.24-1.5%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-06-30; filed 2025-08-06.
0001516912-25-000132
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-09-30; filed 2025-11-05.
0001516912-25-000150
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 181 previous paragraphs and 178 current paragraphs.
100 unchanged; 47 reworded; 27 added; 32 removed; 2 previous and 4 current paragraphs rearranged.
Tables are not compared: 20 previous and 20 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (27)
Current report
2025 Third Quarter Key Metrics
Current report
•Provision for credit losses was $36.8 million for the three months ended September 30, 2025, reflecting an increase of $32.2 million compared to the three months ended September 30, 2024. The increase was due primarily to suspected fraud within a borrowing relationship.
Current report
•Total deposits were $8.33 billion at September 30, 2025, reflecting an increase of $108.7 million, or 1.3%, compared to December 31, 2024. Interest-bearing deposits were $5.52 billion, reflecting an increase of $215.3 million, or 4.1%, compared to December 31, 2024.
Current report
•As part of our Optimize Origin initiatives, we purchased additional shares of Argent Financial on July 1, 2025, which resulted in us reaching the 20% ownership threshold. This required a change to how we account for this investment from the cost method to the equity method and resulted in a fair value adjustment gain and equity method investment income of $7.0 million and $1.2 million, respectively, to be recorded during the current quarter.
Current report
Total provision expense increased by $32.2 million, to $36.8 million for the three months ended September 30, 2025, from $4.6 million for the three months ended September 30, 2024, primarily due to a $30.6 million increase in provision expense for loan credit losses. The increase was primarily related to the suspected borrower fraud impacting the Tricolor Holdings, LLC loan relationship which was previously disclosed in our Current Report on Form 8-K filed on September 10, 2025, which drove a $29.5 million increase in provision expense, consisting of $28.0 million for loan credit losses and $1.5 million for off-balance sheet commitments. We are pursuing all possible recovery outcomes. Also contributing to the increase in provision for loan credit losses was a $1.7 million increase in the provision for relationships impacted by the questioned activity first disclosed during the three months ended June 30, 2024. Our provision for loan credit losses, exclusive of these events, would have been $5.5 million for the three months ended September 30, 2025, representing an $821,000 increase compared to the three months ended September 30, 2024.
Current report
Noninterest income for the three months ended September 30, 2025, increased by $10.1 million, or 63.4%, to $26.1 million, compared to $16.0 million for the three months ended September 30, 2024, primarily due to increases of $7.0 million, $2.2 million and $1.3 million in changes in fair value of equity investments, other income and swap fee income, respectively.
Current report
Change in fair value of equity securities. The $7.0 million increase in change in fair value of equity securities was driven by the additional investment in Argent Financial 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, and therefore required an upward adjustment to its basis. For more information, see Part I, Note 4 — Equity Method Investments.
Current report
Other income. The $2.2 million increase in other income was primarily due to the $2.1 million in insurance recoveries in connection with the previously disclosed questioned activity.
Current report
Noninterest expense for the three months ended September 30, 2025, decreased by $493,000, or 0.8%, to $62.0 million, compared to $62.5 million for the three months ended September 30, 2024, primarily due to decreases of $628,000 and $617,000 in salaries and employee benefits and professional services expense, respectively. These decreases were offset by an increase of $781,000 in occupancy and equipment, net.
Current report
Salaries and employee benefits. The $628,000 decrease in salaries and employee benefits was primary due to a decrease in salaries as a result of a decrease in bank full time equivalent employees to 860 at September 30, 2025 compared to 929 at September 30, 2024. Salaries declined by $1.3 million for the three months ended September 30, 2025, compared to the three months ended September 30, 2024, partially offset by a $552,000 increase medical insurance.
Current report
Occupancy and equipment, net. The $781,000 increase in occupancy and equipment, net expense was primarily driven by the timing difference of rental payments and lease commencement dates of certain newly originated leases between the quarters in 2024. Also contributing to the increase was rent expense related to new leases executed during the three months ended September 30, 2025.
Current report
Our net income decreased $16.5 million, or 26.6%, to $45.7 million for the nine months ended September 30, 2025, from $62.2 million for the nine months ended September 30, 2024. On a diluted EPS basis, we reported $1.46 per share for the nine months ended September 30, 2025, compared to $2.00 per share for the nine months ended September 30, 2024. The decrease was primarily due to a $30.3 million increase in provision expense to $43.1 million for the nine months ended September 30, 2025, due primarily to suspected fraud within a borrowing relationship, compared to $12.8 million for the nine months ended September 30, 2024.
Current report
Net interest income for the nine months ended September 30, 2025, was $244.3 million, an increase of $22.3 million, or 10.0%, compared to the nine months ended September 30, 2024. The increase was primarily due to a $43.7 million decrease in interest expense, partially offset by a $21.4 million decrease in total interest income during the nine months ended September 30, 2025, compared to nine months ended September 30, 2024.
Current report
Interest expense on total interest-bearing deposits decreased by $42.4 million, with $32.1 million of the decrease attributable to lower interest rates during the nine months ended September 30, 2025, compared to the nine months ended September 30, 2024. The average rate on interest-bearing deposits declined 73 basis points to 3.21% for the nine months ended September 30, 2025, from 3.94% for the nine months ended September 30, 2024. The remaining decrease in interest expense was driven primarily by a $636.3 million decline in average time deposit balances, which included a $477.2 million decline in lower average brokered time deposits, and contributed $21.1 million to the decrease in interest expense. This impact was partially offset by a $380.5 million increase in average savings and interest-bearing transaction accounts balance, which contributed $10.8 million to the total interest expense.
Current report
We recorded a provision expense of $43.1 million for the nine months ended September 30, 2025, a $30.3 million increase from $12.8 million for the nine months ended September 30, 2024, primarily driven by a $27.4 million increase in the provision for loan credit losses. The increase was primarily related to suspected borrower fraud impacting the Tricolor Holdings, LLC loan relationship which was discussed above in the Provision for Credit Losses section for the three months ended September 30, 2025.
Current report
Net charge-offs increased $21.4 million, to $36.4 million for the nine months ended September 30, 2025, from $15.0 million for the nine months ended September 30, 2024. The increase was largely reflecting a net charge-offs of $28.4 million in the current quarter related to suspected borrower fraud impacting the Tricolor Holdings, LLC loan relationship discussed above. Our net charge-offs, exclusive of this event, would have been $8.0 million for the nine months ended September 30, 2025, representing a $7.0 million decrease from the nine months ended September 30, 2024. Charge-offs during the nine months ended September 30, 2024, were driven by charge-offs on two commercial and industrial loan relationships totaling $10.0 million. Net charge-offs to total average LHFI (annualized) increased to 0.64% for the nine months ended September 30, 2025, from 0.26% for the nine months ended September 30, 2024, primarily due to higher net charge-offs during the nine months ended September 30, 2025.
Current report
Noninterest income for the nine months ended September 30, 2025, decreased by $12.6 million, or 22.6%, to $43.1 million, compared to $55.7 million for the nine months ended September 30, 2024. The decrease was primarily due to an increase of $14.3 million in loss on sales of securities, net and decreases of $3.6 million and $2.4 million in equity method investment (loss) income and mortgage banking revenue. Partially offsetting these items were increases of $3.1 million, $1.9 million and $1.8 million in swap fee income, other income and change in fair value of equity investments.
Current report
Equity method investment (loss) income. The decrease in the equity method investment (loss) income was primarily due to a $3.3 million loss on one limited partnership investment during the nine months ended September 30, 2025. Additionally, we recognized income of $925,000 on the same limited partnership investment during the nine months ended September 30, 2024, which contributed to the decrease for the comparable periods. The decrease was offset by income of $1.2 million related to the Argent equity method investment earned during the nine months ended September 30, 2025.
Current report
Mortgage banking revenue. The $2.4 million decrease in mortgage banking revenue compared to the nine months ended September 30, 2024, was primarily due to decreases in most mortgage banking income categories during the nine months ended September 30, 2025, primarily due to the sale of substantially all of our mortgage servicing rights asset during the nine months ended September 30, 2024. The restructuring of our mortgage banking operations was done as part of our Optimize Origin initiative.
Current report
Other income. The $1.9 million increase in other income was primarily due to insurance recoveries of $2.1 million during the nine months ended September 30, 2025, in connection with the previously disclosed questioned activity.
Current report
Change in fair value of equity investments. The $1.8 million increase in the change in fair value of equity investments, was driven by an upward adjustment of $7.0 million for the nine months ended September 30, 2025, compared to a $5.2 million upward adjustment for the nine months ended September 30, 2024. During the nine months ended September 30, 2025, there was an additional investment in Argent Financial 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, and therefore required an upward adjustment to its basis.
Current report
Salaries and employee benefits. The $1.5 million increase in salaries and employee benefits expense was primarily driven by an increase of $1.5 million in each of incentive compensation and medical costs, respectively, for the nine months ended September 30, 2025, compared to the nine months ended September 30, 2024. Also contributing to the increase was an increase of $470,000 in severance compensation, primarily as a part of our Optimize Origin initiative. These increases were offset by a decrease of $2.1 million in salaries due to a decrease in bank full time equivalent (“FTE”) employees to 860 at September 30, 2025 compared to 929 at September 30, 2024. Of the overall decrease in bank FTE employees, approximately 94 FTE employees were reduced as part of our Optimize Origin initiative, partially offset by net new hires and attrition during the intervening period.
Current report
Total assets increased by $112.6 million, or 1.2%, to $9.79 billion at September 30, 2025, from $9.68 billion December 31, 2024. Cash and cash equivalents were $626.9 million at September 30, 2025, compared to $470.2 million at December 31, 2024, an increase of $156.7 million, or 33.3%. Equity method investments were $65.6 million at September 30, 2025, compared to $19.0 million at December 31, 2024, an increase of $46.7 million. These increases were partially offset by decreases of $40.6 million and $36.6 million in non-marketable equity securities held in other financial institutions and LHFI, respectively. Non-marketable equity securities held in other financial institutions and LHFI were $31.0 million and $7.54 billion at September 30, 2025, respectively, compared to $71.6 million and $7.57 billion at December 31, 2024, respectively.
Current report
Equity Method Investments
Current report
On July 1, 2025, the Company increased its ownership in Argent Financial Group, Inc. to an amount in excess of 20% through a stock purchase, resulting in the application of the equity method for this investment. This purchase was the primary reason our equity method investments increased $46.7 million, or 246.0%, to $65.6 million at September 30, 2025, compared to $19.0 million at December 31, 2024. The implementation of the equity method of accounting resulted in a change in presentation to the underlying asset from non-marketable equity securities held in other financial institutions to equity method investments. As a result, non-marketable equity securities held in other financial institutions declined $40.6 million, or 56.7%, to $31.0 million at September 30, 2025, compared to $71.6 million at December 31, 2024.
Current report
Total deposits increased $108.7 million, or 1.3%, at September 30, 2025, compared to December 31, 2024, with increases of $470.8 million and $99.7 million in money market and noninterest-bearing demand, respectively, offset by decreases of $261.8 million, $126.3 million, and $80.2 million in interest-bearing demand, time deposits, and brokered deposits, respectively. The additional deposit funding was primarily used to increase cash and cash equivalents by $156.7 million, and to reduce outstanding subordinated debentures by $70.2 million, when comparing September 30, 2025 to December 31, 2024. These actions were consistent with management’s objective to strengthen the Bank’s liquidity position and reduce the reliance on brokered deposits and other sources of wholesale funding.
Current report
Average noninterest-bearing deposits increased $3.3 million, or 0.2%, to $1.87 billion for both the nine months ended September 30, 2025, and the nine months ended September 30, 2024, and represented 22.7% and 22.0% of average total deposits for the nine months ended September 30, 2025 and 2024, respectively.
Removed paragraphs (32)
Previous report
•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 report
2025 Second Quarter Highlights
Previous report
•As part of our bond portfolio optimization strategy, we sold available-for-sale investment securities with a book value of $215.8 million and realized a loss of $14.4 million during the quarter ended June 30, 2025. This transaction, net of the increase in interest income, negatively impacted diluted EPS by $0.35, but contributed approximately two basis points to our NIM-FTE for the quarter ended June 30, 2025, with an estimated twelve-month total positive impact to NIM-FTE of six basis points.
Previous report
•Total loans held for investment (“LHFI”) were $7.68 billion at June 30, 2025, reflecting an increase of $110.7 million, or 1.5%, compared to December 31, 2024. LHFI, excluding mortgage warehouse lines of credit, were $7.11 billion at June 30, 2025, reflecting an decrease of $114.9 million, or 1.6%, compared to December 31, 2024.
Previous report
•As part of our Optimize Origin initiative, we purchased additional shares of Argent Financial on July 1, 2025, which allowed us to reach the 20% ownership threshold. This will change our accounting methodology on this investment to the equity method, which will result in an increase in noninterest income.
Previous report
Results of Operations
Previous report
Net Interest Income and Net Interest Margin for the Three Months Ended June 30, 2025 and 2024
Previous report
During the quarter ended June 30, 2025, we executed another bond portfolio optimization strategy aimed at enhancing long-term yields and improving overall portfolio performance. This strategy involved selling lower-yielding available-for-sale investment securities and using the proceeds to purchase higher-yielding available-for-sale investment securities. As part of the strategy, we also entered into interest rate swaps designated as fair value hedges on seven of these purchased securities to help reduce potential volatility in the fair value of these securities due to changes in market rates. As a result, we replaced securities with a total book value of $215.8 million and a weighted average yield of 2.60% with new securities totaling $201.8 million with a weighted average yield of 5.23%, realizing a loss of $14.4 million. While the associated loss, net of the increase in interest income, resulted in a $0.35 negative impact to diluted EPS during the quarter ended June 30, 2025, we believe the trade-off in yield represents an attractive opportunity with an estimated increase in annual net interest income of $5.6 million, an earn-back period of 2.6 years and a twelve month total positive impact to NIM-FTE of six basis points.
Previous report
Total provision expense decreased by $2.4 million, to $2.9 million for the three months ended June 30, 2025, from $5.2 million for the three months ended June 30, 2024, primarily due to a $2.7 million decrease in provision expense for loan credit losses. This decrease was primarily due to certain questioned loan activity described in Part I, Item 1, Note 12 — Commitments and Contingencies under Loss Contingencies which led to additional provision expense being recorded during three months ended June 30, 2024.
Previous report
Noninterest income for the three months ended June 30, 2025, decreased by $21.1 million, or 93.9%, to $1.4 million, compared to $22.5 million for the three months ended June 30, 2024, primarily due to the $14.4 million loss on sales of securities, net, recorded during the current quarter and decreases of $5.2 million and $2.0 million in change in fair value of equity investments and limited partnership investment (loss) income, respectively. These decreases were partially offset by an increase of $1.4 million in swap fee income.
Previous report
Loss on sales of securities, net. The increase in loss on sales of securities, net, resulted from the $14.4 million loss recognized during the three months ended June 30, 2025, as a result of our bond portfolio optimization strategy, with no comparable loss recognized during the three months ended June 30, 2024.
Previous report
Change in fair value of equity securities. The decrease in change in fair value of equity securities resulted from a $5.2 million positive valuation adjustment on a non-marketable equity security during the three months ended June 30, 2024. There has been no such adjustment during the three months ended June 30, 2025.
Previous report
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 report
Noninterest expense for the three months ended June 30, 2025, decreased by $2.4 million, or 3.7%, to $62.0 million, compared to $64.4 million for the three months ended June 30, 2024, primarily due to decreases of $1.5 million, $497,000 and $408,000 in other expense, regulatory assessments and loan-related expense, respectively.
Previous report
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 report
Our net income decreased $6.6 million, or 15.0%, to $37.1 million for the six months ended June 30, 2025, from $43.6 million for the six months ended June 30, 2024. On a diluted EPS basis, we reported $1.18 per share for the six months ended June 30, 2025, compared to $1.40 per share for the six months ended June 30, 2024.
Previous report
Net interest income for the six months ended June 30, 2025, was $160.6 million, an increase of $13.4 million, or 9.1%, compared to the six months ended June 30, 2024. The increase was primarily driven by a $26.4 million decrease in interest expense on interest-bearing deposits, and increases of $2.9 million and $2.3 million in interest income earned on investment securities and interest-earning deposits in banks, respectively. The increase in net interest income was partially offset by a decrease of $18.6 million in interest income earned on LHFI during the six months ended June 30, 2025, compared to the six months ended June 30, 2024.
Previous report
The decrease in average rates and average balances of interest-bearing deposits during the six months ended June 30, 2025, contributed decreases of $20.1 million and $6.3 million, respectively, to interest expense when compared to the six months ended June 30, 2024. The average rate on interest-bearing deposits was 3.21% for the six months ended June 30, 2025, a decrease of 69 basis points, from 3.90% for the six months ended June 30, 2024. The decrease in average balances of interest-bearing deposits was primarily driven by a $535.3 million decrease in average brokered deposit balances.
Previous report
The $2.9 million increase in interest income earned on investment securities was primarily driven by the bond portfolio optimization strategy we executed beginning in the fourth quarter of 2024 in conjunction with our Optimize Origin initiative, which improved our interest yield on investment securities by 64 basis points to 3.16% for the six months ended June 30, 2025, from 2.52% for the six months ended June 30, 2024. Please see the Net Interest Income and Net Interest Margin for the Three Months Ended June 30, 2025 and 2024 section above for more information on this transaction.
Previous report
We recorded a provision expense of $6.3 million for the six months ended June 30, 2025, a $1.9 million decrease from $8.2 million for the six months ended June 30, 2024, primarily driven by a $3.1 million decrease in the provision for loan credit losses, partially offset by a $1.2 million increase in the provision for off-balance sheet commitments. The decrease in the provision for loan credit losses was primarily due to certain questioned loan activity described in Part I, Item 1, Note 12 — Commitments and Contingencies under Loss Contingencies, which led to additional provision expense being recorded during the six months ended June 30, 2024.
Previous report
Net charge-offs decreased $500,000, to $5.0 million for the six months ended June 30, 2025, from $5.5 million for the six months ended June 30, 2024. The decrease was primarily driven by a $1.2 million decline in net charge-offs in commercial and industrial loans portfolio, partially offset by a $532,000 increase in net charge-offs within the commercial real estate loans portfolio. Net charge-offs to total average LHFI (annualized) decreased to 0.13% for the six months ended June 30, 2025, from 0.14% for the six months ended June 30, 2024, primarily due to lower net charge-offs during the six months ended June 30, 2025.
Previous report
Noninterest income for the six months ended June 30, 2025, decreased by $22.8 million, or 57.3%, to $17.0 million, compared to $39.7 million for the six months ended June 30, 2024. The decrease was primarily due to a decrease of $14.0 million, $5.2 million, $3.8 million and $2.0 million in loss on sales of securities, net, change in fair value of equity investments, limited partnership investment (loss) gain and mortgage banking revenue. These decreases were partially offset by an increase of $1.9 million in swap fee income.
Previous report
Change in fair value of equity investments. The decrease in the change in fair value of equity investments resulted from a $5.2 million positive valuation on non-marketable equity securities during the six months ended June 30, 2024, with no comparable amount realized during the six months ended June 30, 2025.
Previous report
Limited partnership investment (loss) gain income. The $3.8 million decrease in limited partnership investment (loss) gain income was primarily due to $2.6 million in fair value adjustments on one limited partnership investment during the six months ended June 30, 2025, with no comparable adjustment during the six months ended June 30, 2024.
Previous report
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 report
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 report
Loan-related expenses. The $714,000 decrease in loan-related expenses was primarily due to a decrease of $363,000 in loan sub-servicing costs.
Previous report
Total assets decreased by $544,000 and remained stable at $9.68 billion at June 30, 2025 and December 31, 2024, respectively. Cash and cash equivalents were $334.1 million at June 30, 2025, compared to $470.2 million at December 31, 2024, a decrease of $136.1 million, or 29.0%. This decrease was partially offset by increases of $110.7 million and $24.2 million in LHFI and available for sale securities, respectively. LHFI and available for sale securities were $7.68 billion and $1.13 billion at June 30, 2025, respectively, compared to $7.57 billion and $1.10 billion at December 31, 2024, respectively.
Previous report
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 report
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 report
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 report
Short-term FHLB advances at June 30, 2025, were $115.0 million compared to zero at December 31, 2024. We made a strategic decision to manage our liquidity position and fund the increase in mortgage warehouse line of credit loan principal balances with short-term advances rather than increase our reliance on more expensive brokered deposits. Our mortgage warehouse lines of credit loan balances increased $225.7 million, or 64.6%, at June 30, 2024 compared to December 31, 2024.
Reworded paragraphs (47)
Previous wording
We are 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 55 locations in Dallas/Fort Worth, East Texas, Houston, North Louisiana, Mississippi, South Alabama and the Florida Panhandle. As a financial holding company operating through one segment, we generate the majority of our revenue from interest earned on loans and investments, service charges and fees on deposit accounts.
Current wording
We are 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. As a financial holding company operating through one segment, we generate the majority of our revenue from interest earned on loans and investments, service charges and fees on deposit accounts.
Previous 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.
Current wording
•Net interest income was $83.7 million for the three months ended September 30, 2025, reflecting an increase of $8.9 million, or 11.9%, compared to the three months ended September 30, 2024.
Previous 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.
Current wording
•Our fully tax equivalent net interest margin (“NIM-FTE”) increased 47 basis points for the quarter ended September 30, 2025, compared to the quarter ended September 30, 2024. This expansion was driven primarily by an 82 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.
Previous wording
•During the quarter ended June 30, 2025, we repurchased 136,399 shares of our common stock at an average price of $32.13 per share, including broker commissions and applicable excise taxes.
Current wording
•During the quarter ended September 30, 2025, we repurchased 265,248 shares of our common stock at an average price of $35.85 per share, including broker commissions and applicable excise taxes.
Previous 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.
Current wording
•Book value per common share was $39.23 at September 30, 2025, reflecting an increase of $2.52, or 6.9%, compared to December 31, 2024.
Previous wording
Comparison of Results of Operations for the Six Months Ended June 30, 2025 and 2024
Current wording
Comparison of Results of Operations for the Three Months Ended September 30, 2025 and 2024
Previous 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.
Current wording
Our net income decreased $10.0 million, or 53.6%, to $8.6 million for the three months ended September 30, 2025, from $18.6 million for the three months ended September 30, 2024. On a diluted EPS basis, we reported $0.27 per share for the three months ended September 30, 2025, compared to $0.60 per share for the three months ended September 30, 2024. The decrease was primarily due to a $32.2 million increase in provision expense to $36.8 million for the three months ended September 30, 2025, in connection with suspected borrower fraud, compared to $4.6 million for the three months ended September 30, 2024.
Previous 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.
Current wording
Net interest income for the three months ended September 30, 2025, was $83.7 million, an increase of $8.9 million, or 11.9%, compared to the three months ended September 30, 2024. The increase was primarily due to an $17.0 million decrease in interest expense, partially offset by a $8.1 million decrease in total interest income during the three months ended September 30, 2025, compared to three months ended September 30, 2024.
Previous 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.
Current wording
Interest expense on total interest-bearing deposits decreased by $16.0 million, with $12.0 million of the decrease attributable to lower interest rates during the three months ended September 30, 2025, compared to the three months ended September 30, 2024. The average rate on interest-bearing deposits declined 81 basis points to 3.20% for the three months ended September 30, 2025, from 4.01% for the three months ended September 30, 2024. The remaining decrease in interest expense on total interest-bearing deposits was driven by a $316.2 million decline in the average interest-bearing deposit balances. A reduction of $650.2 million in the average time deposit balances, which included a decrease of $443.6 million in average brokered time deposits, contributed $7.3 million to the decrease in interest expense. This impact was partially offset by a $333.9 million increase in average savings and interest-bearing transaction account balances, which added approximately $3.3 million to the total interest expense.
Previous 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.
Current wording
Interest income earned on LHFI decreased by $12.9 million during the three months ended September 30, 2025, compared to the three months ended September 30, 2024, with $8.2 million and $4.7 million due to lower average LHFI balances and lower yields, respectively. Decreases in average loan balance accounted for $6.9 million, $1.5 million and $1.2 million of the decreases in interest income on construction/land/land development, commercial and industrial loans and mortgage warehouse lines of credit, respectively, partially offset by a $2.4 million increase in interest income on residential real estate loans due to higher average balances, for the comparable periods. Lower interest rates drove a $3.6 million 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 $2.8 million in interest income earned on investment securities, which was primarily driven by improved yields resulting from the execution of our bond portfolio optimization strategy during the intervening period, in conjunction with our Optimize Origin initiative.
Previous 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.
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 17, 2025, and on October 29, 2025, the Federal Reserve reduced the federal funds target rate range by 25 basis points each, to a range of 3.75% to 4.00%, decreasing the federal funds target range a total of 150 basis points from its recent cycle high set in mid-2023.
Previous 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.
Current wording
The NIM-FTE was 3.65% for the three months ended September 30, 2025, a 47-basis point increase from 3.18% for the three months ended September 30, 2024. The improvement was mainly driven by an expanding interest rate spread, as the 82-basis-point decline in the average cost of total interest-bearing liabilities exceeded the 20-basis-point decline in the yield earned on interest-earning assets for the three months ended September 30, 2025, compared to the three months ended September 30, 2024. The average rate on total interest-bearing liabilities for the three months ended September 30, 2025, was 3.22%, compared to 4.04% for the three months ended September 30, 2024. The average yield earned on total interest-earning assets for the three months ended September 30, 2025, was 5.89%, compared to 6.09% for the three months ended September 30, 2024.
Previous 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.
Current wording
Net charge-offs increased $21.9 million, to $31.4 million for the three months ended September 30, 2025, from $9.5 million for the three months ended September 30, 2024. The increase was primarily due to net charge-offs of $28.4 million in the current quarter related to the suspected borrower fraud impacting the Tricolor Holdings, LLC loan relationship, discussed above. The allowance for loan credit losses (“ALCL”) to nonperforming LHFI was 109.04% at September 30, 2025, compared to 149.35% at September 30, 2024, primarily driven by an increase of $24.0 million in our nonperforming LHFI compared to September 30, 2024. This increase in nonperforming LHFI resulted from $38.2 million from 11 loan relationships placed on non-performing status subsequent to September 30, 2024, partially offset by reductions totaling $5.4 million from three commercial and industrial loan relationships through pay-off, pay-down or charge-off activities during the intervening period. The increase was further offset by $6.9 million primarily 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 activity.
Previous wording
Swap fee income. The $1.4 million increase in swap fee income was primarily due to both an attractive interest rate environment which is increasingly conducive to facilitating back-to-back swaps for our customers and an increased focus on the marketing of customer swaps as part of our Optimize Origin initiative.
Current wording
Swap fee income. The $1.3 million increase in swap fee income was primarily due to both an attractive interest rate environment which is increasingly conducive to facilitating back-to-back swaps for our customers and an increased focus on the marketing of customer swaps as part of our Optimize Origin initiative.
Previous wording
Other expense. The $1.5 million decrease in other expense was primary due to a $1.2 million contingent liability recognized during the three months ended June 30, 2024, related to certain questioned activity involving a former banker in our East Texas market, as explained in detail in Part I, Item 1, Note 12 — Commitments and Contingencies under Loss Contingencies.
Current wording
Professional services. The $617,000 decrease in professional services was primarily due to a decrease in legal and consultant expense. This decrease is primarily due to a decrease in expenses related to certain questioned activity involving a former banker in our East Texas market, as explained in detail in Part I, Item 1, Note 13 — Commitments and Contingencies under Loss Contingencies.
Previous wording
Interest income earned on LHFI decreased by $18.6 million during the six months ended June 30, 2025, compared to the six months ended June 30, 2024, with $10.6 million, $8.1 million due to lower average LHFI balances and lower market interest rates during the six months ended June 30, 2025, respectively. Decreases in average loan balances accounted for $11.1 million, $3.5 million and $1.2 million of the decrease in interest income earned on construction/land/land development, commercial and industrial and commercial real estate loans for the comparable periods, respectively, partially offset by a $4.6 million increase in interest income earned on residential real estate loans due to increase in average loan balance. Decreases in interest rates drove $5.8 million of the decrease in interest income earned on commercial and industrial loans.
Current wording
Interest income earned on LHFI decreased by $31.6 million during the nine months ended September 30, 2025, compared to the nine months ended September 30, 2024, with $18.5 million and $13.1 million due to lower average LHFI balances and lower yields, respectively. Decreases in average loan balance accounted for $18.0 million and $5.0 million in of the decreases in interest income on construction/land/land development and commercial and industrial loans, respectively, partially offset by a $7.3 million increase in interest income on residential real estate loans due to higher average balances, for the comparable periods. Decreases in interest rates drove $9.4 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 $5.8 million and $4.4 million in interest income on investment securities and interest-earning deposits in banks, respectively. The increase in interest income on investment securities was primarily driven by improved yields resulting from the execution of our bond portfolio optimization strategy during the intervening period, in conjunction with our Optimize Origin initiative. The increase in interest income on interest-earning balances due from banks was primarily driven by a $189.5 million increase in the average balances which generated a $7.7 million increase in interest income, partially offset by a $3.4 million decrease in interest income due to lower market interest rates.
Previous wording
The NIM-FTE was 3.52% for the six months ended June 30, 2025, a 34-basis point increase from 3.18% for the six months ended June 30, 2024. The improvement was mainly driven by an expanding interest rate spread, as the 66-basis-point decline in the average rate on total interest-bearing liabilities exceeded the 18-basis-point decline in the yield earned on interest-earning assets for the six months ended June 30, 2025, compared to the six months ended June 30, 2024. The average rate on total interest-bearing liabilities for the six months ended June 30, 2025, was 3.27%, compared to 3.93% for the six months ended June 30, 2024. The average yield earned on total interest-earning assets for the six months ended June 30, 2025, was 5.83%, compared to 6.01% for the six months ended June 30, 2024.
Current wording
The NIM-FTE was 3.57% for the nine months ended September 30, 2025, a 39-basis point increase from 3.18% for the nine months ended September 30, 2024. The improvement was mainly driven by an expanding interest rate spread, as the 70-basis-point decline in the average rate on total interest-bearing liabilities exceeded the 19-basis-point decline in the yield earned on interest-earning assets for the nine months ended September 30, 2025, compared to the nine months ended September 30, 2024. The average rate on total interest-bearing liabilities for the nine months ended September 30, 2025, was 3.26%, compared to 3.96% for the nine months ended September 30, 2024. The average yield earned on total interest-earning assets for the nine months ended September 30, 2025, was 5.85%, compared to 6.04% for the nine months ended September 30, 2024.
Previous wording
The following table presents average consolidated balance sheet information, interest income, interest expense and the corresponding average yields earned, and rates paid for the six months ended June 30, 2025 and 2024.
Current wording
The following table presents average consolidated balance sheet information, interest income, interest expense and the corresponding average yields earned, and rates paid for the nine months ended September 30, 2025 and 2024.
Previous wording
Loss on sales of securities, net. The $14.0 million increase in loss on sales of securities, net, was due to a $14.4 million loss recognized during six months ended June 30, 2025, as a result of our bond portfolio optimization strategy transaction.
Current wording
Loss on sales of securities, net. The $14.3 million increase in loss on sales of securities, net, was due to a $14.4 million loss recognized during nine months ended September 30, 2025, as a result of our bond portfolio optimization strategy transaction discussed in further detail in both the quarter-to-date and year-to-date Net Interest Income and Net Interest Margin sections above.
Previous wording
Swap fee income. The $1.9 million increase in swap fee income was primarily due to both an attractive interest rate environment which is increasingly conducive to facilitating back-to-back swaps for our customers and an increased focus on the marketing of customer swaps as part of our Optimize Origin initiative.
Current wording
Swap fee income. The $3.1 million increase in swap fee income during the nine months ended September 30, 2025, was primarily due to both an attractive interest rate environment which is increasingly conducive to facilitating back-to-back swaps for our customers and an increased focus on the marketing of customer swaps as part of our Optimize Origin initiative.
Previous 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.
Current wording
Noninterest expense for the nine months ended September 30, 2025, increased by $463,000, or 0.2%, to $186.1 million, compared to $185.6 million for the nine months ended September 30, 2024, primarily due to increases of $2.9 million, $1.5 million and $935,000 in occupancy and equipment, net, salaries and employee benefits and office and operations expenses, respectively. These increases were partially offset by decreases of $1.4 million, $1.1 million and $1.1 million in regulatory assessments, other expense and intangible asset amortization, respectively.
Previous 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.
Current wording
Occupancy and equipment, net. The $2.9 million increase in occupancy and equipment, net was primarily due to an $897,000 acceleration of depreciation expense associated with the accounting for our branch consolidation during the nine months ended September 30, 2025, as a part of our Optimize Origin initiative. Also contributing to the increase was an additional $794,000 and $570,000 in depreciation expense associated with the opening or relocation of three banking centers during the latter part of 2024 and additional fixed asset purchases, respectively.
Previous 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.
Current wording
Office and operations. The $935,000 increase in office and operations expense was primarily related to a $508,000 increase in check and card fraud.
Previous 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.
Current wording
Regulatory assessments. The $1.4 million decrease in regulatory assessment expense was primarily driven by our improved risk-based pricing as a result of an adjustment to our loan mix during the nine months ended September 30, 2025, compared to the nine months ended September 30, 2024.
Previous wording
Other noninterest expense. The $1.2 million decrease in other noninterest expense was primarily due to due to a $1.2 million contingent liability recognized during the six months ended June 30, 2024, related to certain questioned activity involving a former banker in our East Texas market, as explained in detail in Part I, Item 1, Note 12 — Commitments and Contingencies under Loss Contingencies.
Current wording
Other noninterest expense. The $1.1 million decrease in other noninterest expense was primarily due to a $1.2 million contingent liability recognized during the nine months ended September 30, 2024, related to certain questioned activity involving a former banker in our East Texas market, as explained in detail in Part I, Item 1, Note 13 — Commitments and Contingencies under Loss Contingencies.
Previous 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.
Current wording
Intangible asset amortization. The $1.1 million decrease in intangible asset amortization is primarily due to the accelerated amortization method used to measure the amortization expense of the assets.
Previous 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.
Current wording
Total liabilities increased by $43.1 million, or 0.5%, to $8.58 billion at September 30, 2025, from $8.53 billion at December 31, 2024. Total deposits increased by $108.7 million, or 1.3%, to $8.33 billion at September 30, 2025, from $8.22 billion at December 31, 2024, primarily due to increases of $470.8 million and $99.7 million in money market and noninterest-bearing deposits, respectively. These increases were partially offset by decreases of $261.8 million, $126.3 million and $80.2 million in interest-bearing demand deposits, time deposits (excluding brokered time deposits) and brokered deposits, respectively. Subordinated debentures decreased $70.2 million, or 43.9%, to $89.7 million at September 30, 2025, from $159.9 million at December 31, 2024, as we redeemed eligible subordinated debentures as part of our Optimize Origin initiative.
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 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.
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 September 30, 2025, 73.2% 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 commercial real estate of $972.8 million and $975.9 million at June 30, 2025 and December 31, 2024, respectively.
Current wording
(1)Includes owner-occupied commercial real estate of $986.9 million and $975.9 million at September 30, 2025, and December 31, 2024, respectively.
Previous 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.
Current wording
At September 30, 2025, total LHFI were $7.54 billion, a decrease of $36.6 million, or 0.5%, compared to $7.57 billion at December 31, 2024. The decrease was primarily driven by declines of $248.2 million and $82.9 million in construction/land/land development and commercial and industrial loans, respectively. These declines were offset by growth of $143.7 million, $123.9 million and $29.4 million in residential real estate loans, mortgage warehouse lines of credit and commercial real estate loans, respectively. The decrease in construction/land/land development loans was primarily due to the normal reclassification of these loans upon completion, resulting in a change in loan category during the current period compared to December 31, 2024. Total LHFI at September 30, 2025, excluding mortgage warehouse lines of credit, were $7.06 billion, reflecting a decrease of $160.5 million, or 2.2%, compared to December 31, 2024.
Previous 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.
Current wording
A significant portion, 33.2%, of our LHFI portfolio at September 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
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.
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 $5.5 million of unpaid principal balance PCD loans at September 30, 2025, and $12.3 million of unpaid principal balance PCD loans at December 31, 2024.
Previous 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.
Current wording
The ALCL to nonperforming LHFI decreased to 109.04% at September 30, 2025, compared to 121.41% at December 31, 2024, primarily driven by an increase of $13.3 million in the Company’s nonperforming LHFI as explained in the preceding Nonperforming Assets section, during the nine months ended September 30, 2025.
Previous 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.
Current wording
Our securities portfolio increased $1.4 million and remained stable at $1.12 billion at both the September 30, 2025, and December 31, 2024, period ends. 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 nine months ended September 30, 2025.
Previous wording
This bond portfolio optimization strategy aimed at enhancing long-term yields and improving overall portfolio performance and involved selling lower-yielding available-for-sale investment securities and using the proceeds to purchase higher-yielding available-for-sale investment securities. As a result, during the six months ended June 30, 2025, we replaced securities with a total book value of $215.8 million and a weighted average yield of 2.60% with new securities totaling $201.8 million with a weighted average yield of 5.23%, realizing a loss of $14.4 million. The weighted average duration of the securities portfolio increased to 4.52 years as of June 30, 2025, compared to 4.10 years as of March 31, 2025. As part of the strategy, we also entered into interest rate swaps designated as fair value hedges on seven of these purchased securities with a total book value of $41.3 million, to help reduce potential volatility in the fair value of these securities due to changes in market rates.
Current wording
This bond portfolio optimization strategy aimed at enhancing long-term yields and improving overall portfolio performance and involved selling lower-yielding available-for-sale investment securities and using the proceeds to purchase higher-yielding available-for-sale investment securities. As a result, during the nine months ended September 30, 2025, we replaced securities with a total book value of $215.8 million and a weighted average yield of 2.60% with new securities totaling $201.8 million with a weighted average yield of 5.23%, realizing a loss of $14.4 million.
Previous 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.
Current wording
Our available for sale portfolio totaled $1.10 billion at September 30, 2025, and represented 98.5% of our total security portfolio and was comprised of 42.0% mortgage-backed, 26.5% municipal, 25.6% collateralized mortgage obligations, 5.6% 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 was 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 4.52 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.
Current wording
The securities portfolio had a weighted average effective duration of 4.31 years at September 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
(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.
Current wording
(1)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 $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.
Current wording
(1)Average brokered deposits include average brokered time deposits and average brokered interest-bearing demand of $33.3 million and $1,000, respectively, for the nine months ended September 30, 2025. Average brokered deposits include average brokered time deposits and average brokered interest-bearing demand of $510.4 million and $61.0 million, respectively, for the nine months ended September 30, 2024.
Previous 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.
Current wording
Our average deposit balances were $8.25 billion for the nine months ended September 30, 2025, a decrease of $252.5 million, or 3.0%, from $8.50 billion for the nine months ended September 30, 2024. The average rate paid on our interest-bearing deposits for the nine months ended September 30, 2025, was 3.21%, compared to 3.94% for the nine months ended September 30, 2024.
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Rearranged current paragraphs (4)
Current report — wording carried from elsewhere
Comparison of Results of Operations for the Nine Months Ended September 30, 2025 and 2024
Current report — wording carried from elsewhere
Net Interest Income and Net Interest Margin
Current report — wording carried from elsewhere
Nonperforming LHFI increased $13.3 million at September 30, 2025, compared to December 31, 2024, and nonperforming LHFI to LHFI increased to 1.17% compared to 0.99%. The increase in nonperforming loans primarily resulted from eight loan relationships totaling $25.4 million placed on non-performing status subsequent to December 31, 2024, partially offset by reductions totaling $4.8 million from three existing nonperforming loan relationships through pay-off, pay-down or charge-off activities during the intervening period. The increase was further offset by $3.0 million in principal pay-downs on certain loan relationships that were placed on non-performing status in the prior year as a result of the discovery of the questioned activity. Please see Note 5 — Loans to our consolidated financial statements contained in Part I, Item 1 of this report for more information on nonperforming loans.
Current report — wording carried from elsewhere
During the third quarter of 2025, the Company repurchased a total of 265,248 shares of its common stock pursuant to its July 2025 stock repurchase program at an average price per share of $35.85, for an aggregate purchase price of $9.5 million, including broker commissions and applicable excise taxes. Year-to-date 2025 stock repurchases totaled 401,647 shares of its common stock at an average price per share of $34.59, for an aggregate purchase price of $13.9 million, including broker commissions and applicable excise taxes.
Rearranged previous paragraphs (2)
Previous report — wording carried elsewhere
The $2.3 million increase in interest income on interest-earning balances due from banks was primarily driven by a $161.8 million increase in the average balances which generated a $4.4 million increase in interest income, partially offset by a $2.1 million decrease in interest income due to lower market interest rates.
Previous report — wording carried elsewhere
Regulatory assessments. The $839,000 decrease in regulatory assessment expense was primarily driven by our improved risk-based pricing loan mix adjustment during the six months ended June 30, 2025, compared to the six months ended June 30, 2024.