Origin Bancorp, Inc.
For the period ended Mar 31, 2026. Filed May 6, 2026.
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.
Mar 31, 2026 · Filed May 6, 2026
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 2025-09-30; filed 2025-11-05.
0001516912-25-000150
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-03-31; filed 2026-05-06.
0001516912-26-000032
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 178 previous paragraphs and 133 current paragraphs.
84 unchanged; 30 reworded; 18 added; 55 removed; 9 previous and 1 current paragraphs rearranged.
Tables are not compared: 20 previous and 15 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 (18)
Current report
•As announced in our Fourth Quarter and Full Year 2025 Earnings Release, we updated our near term ROAA run rate target to 1.15% or higher by 4Q26, as we continue towards our ultimate target of a top quartile ROAA.
Current report
2026 First Quarter Key Metrics
Current report
•Total loans held for investment (“LHFI”) were $7.86 billion at March 31, 2026, reflecting an increase of $193.3 million, or 2.5%, compared to December 31, 2025. LHFI, excluding mortgage warehouse lines of credit, were $7.34 billion at March 31, 2026, reflecting an increase of $199.8 million, or 2.8%, compared to December 31, 2025.
Current report
•During April 2026, our board approved an increase in our quarterly dividend from $0.15 to $0.25 per share, a 67% increase, reflecting balance sheet strength and earnings durability.
Current report
Our net income increased $5.3 million, or 23.6%, to $27.7 million for the three months ended March 31, 2026, from $22.4 million for the three months ended March 31, 2025. Diluted EPS increased $0.18 to $0.89 per share for the three months ended March 31, 2026, compared to $0.71 per share for the three months ended March 31, 2025. The increase was primarily due to an $8.8 million increase in net interest income, partially offset by increases of $1.7 million and $1.5 million in noninterest expense and provision expense for credit losses, respectively, for the three months ended March 31, 2026, compared to the three months ended March 31, 2025.
Current report
Interest expense on total interest-bearing deposits decreased by $8.1 million, primarily due to a $9.3 million decline attributable to lower interest rates, partially offset by a $1.2 million increase resulting from higher average balances, during the three months ended March 31, 2026, compared to the three months ended March 31, 2025. The average rate on interest-bearing deposits declined 57 basis points to 2.66% for the three months ended March 31, 2026, from 3.23% for the three months ended March 31, 2025. The decline in the average rates reflected lower rates across all categories of interest-bearing deposits. The benefit of lower rates was partially offset by a $1.2 million increase in interest expense attributable to higher average balances, as average interest-bearing deposit balances increased $158.5 million to $6.67 billion for the three months ended March 31, 2026, from $6.51 billion for the three months ended March 31, 2025. This increase was primarily driven by a $349.7 million increase in average money market deposit balances, which increased interest expense by $3.0 million, partially offset by a $160.2 million decrease in average time deposit balances, which reduced interest expense by $1.6 million. In addition, interest expense on subordinated debentures decreased $2.0 million for the three months ended March 31, 2026, primarily due to the redemption of $145.1 million in principal amount of subordinated debentures during the year ended December 31, 2025, which reduced the average balance of subordinated debenture to $16.6 million for the three months ended March 31, 2026, from $124.1 million for the three months ended March 31, 2025.
Current report
(2)Yields/Rates are calculated on an actual/actual day count basis.
Current report
Total provision expense increased by $1.5 million, to $5.0 million for the three months ended March 31, 2026, from $3.4 million for the three months ended March 31, 2025, primarily due to a $1.3 million increase in provision expense for loan credit losses, which was primarily driven by higher collectively evaluated reserves associated with growth in LHFI and updated credit data and risks embedded in our LHFI portfolio.
Current report
Net charge-offs increased $49,000, to $2.8 million for the three months ended March 31, 2026, from $2.7 million for the three months ended March 31, 2025. The allowance for loan credit losses to nonperforming LHFI increased slightly to 113.46% for the three months ended March 31, 2026, compared to 113.08% for the three months ended March 31, 2025.
Current report
Insurance commission and fee income. The $1.7 million increase in insurance commission and fee income was driven by higher policy volumes resulting from continued expansion of our customer base, increased new business production, and favorable retention of existing policies reflected primarily in the property and casualty and contingency lines of business.
Current report
Professional services. The $1.4 million increase in professional services was primarily due to $858,000 in consultant fees related to contract renegotiations which is expected to result in meaningful expense savings on our technology contracts in the future. Additionally, there was a $473,000 increase in legal and consultant expense related to the Tricolor Holdings, LLC fraud which was first disclosed in our Current Report on Form 8-K filed on September 10, 2025 and discussed in subsequent filings.
Current report
Data processing. The $1.1 million increase in data processing was primarily due to an increase of $791,000 in software related expense.
Current report
Salaries and employee benefits. The $666,000 increase in salaries and employee benefits was primary due to a $1.8 million increase in incentive compensation expense, including stock based incentive compensation. Also contributing to the increase was an increase in salaries primarily due an increase in full time equivalent (“FTE”) employees. Our FTE employees increased to 1,000 at March 31, 2026, from 991 at March 31, 2025. These increases were partially offset by a $1.9 million decrease in medical insurance expense.
Current report
Occupancy and equipment, net. The $1.6 million decrease in occupancy and equipment, net expense was primarily due to a $1.5 million increase in expense during the three months ended March 31, 2025, due to 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.
Current report
Total assets increased by $463.4 million, or 4.8%, to $10.19 billion at March 31, 2026, from $9.72 billion at December 31, 2025. The increase was primarily driven by increases of $242.0 million and $193.3 million in cash and cash equivalents and LHFI, respectively. Cash and cash equivalents were $666.2 million at March 31, 2026, an increase of 57.0% from $424.2 million at December 31, 2025. LHFI were $7.86 billion at March 31, 2026, an increase of 2.5% from $7.67 billion at December 31, 2025.
Current report
Nonperforming LHFI increased $6.1 million at March 31, 2026, compared to December 31, 2025, and nonperforming LHFI to LHFI increased to 1.11% compared to 1.06%. The increase in nonperforming LHFI was driven by increases in the real estate secured sectors of commercial real estate and construction/land/land development offset by reductions in the sectors of single-family residential real estate and commercial and industrial. 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 report
Our securities portfolio totaled $1.17 billion at March 31, 2026, representing an increase of $34.2 million, or 3.0% from $1.13 billion at December 31, 2025. The increase reflects the net effect of new purchases, sales, calls, maturities, principal paydowns, and changes in fair value during the three months ended March 31, 2026.
Current report
In July 2025, the Board of Directors of the Company authorized a stock repurchase program pursuant to which the Company may, from time to time, purchase up to $50.0 million of its outstanding common stock. The shares may be repurchased in the open market or in privately negotiated transactions from time to time, depending upon market conditions and other factors, and in accordance with applicable regulations of the Securities and Exchange Commission. The stock repurchase program is intended to expire in three years but may be terminated or amended by the Board of Directors at any time. The stock repurchase program does not obligate the Company to purchase any shares at any time.
Removed paragraphs (55)
Previous report
•Established near term target of greater than a 1% return on average assets (“ROAA”) run rate by the fourth quarter of 2025 and an ultimate target of top quartile ROAA.
Previous report
•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 report
2025 Third Quarter Key Metrics
Previous 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.
Previous report
•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 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.
Previous report
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 report
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 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.
Previous report
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 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.
Previous 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.
Previous report
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 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.
Previous 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.
Previous report
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 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.
Previous 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.
Previous 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.
Previous 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.
Previous report
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 report
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 report
Rate/Volume Analysis
Previous report
Provision for Credit Losses
Previous 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.
Previous 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.
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Noninterest Income
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N/M = Not meaningful.
Previous 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.
Previous report
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 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.
Previous 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.
Previous report
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.
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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.
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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.
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Noninterest Expense
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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.
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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.
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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.
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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.
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Reworded paragraphs (30)
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 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.
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 57 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
In January 2025, we announced our Optimize Origin initiative to drive elite financial performance and enhance our award-winning culture.
Current wording
Our Optimize Origin initiative, announced in January 2025 and designed to drive elite financial performance and enhance our award-winning culture, remains an integral part of our corporate DNA.
Previous 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.
Current wording
•Net interest income was $87.2 million for the three months ended March 31, 2026, reflecting an increase of $8.8 million, or 11.2%, compared to the three months ended March 31, 2025.
Previous 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.
Current wording
•Our fully tax equivalent net interest margin (“NIM-FTE”) increased 27 basis points for the quarter ended March 31, 2026, compared to the quarter ended March 31, 2025. This expansion was driven primarily by a 63-basis point reduction in rates paid on interest-bearing liabilities, offset by a 23-basis point decline in our yield earned on interest-earning assets.
Previous wording
•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 wording
•Total deposits were $8.76 billion at March 31, 2026, reflecting an increase of $449.0 million, or 5.4%, compared to December 31, 2025. Interest-bearing deposits were $5.90 billion, reflecting an increase of $398.0 million, or 7.2%, compared to December 31, 2025.
Previous 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.
Current wording
•During the quarter ended March 31, 2026, we repurchased 165,500 shares of our common stock at an average price of $41.27 per share, including broker commissions and applicable excise taxes.
Previous 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.
Current wording
Net interest income for the three months ended March 31, 2026, was $87.2 million, an increase of $8.8 million, or 11.2%, compared to the three months ended March 31, 2025. The increase was primarily due to a $10.0 million decrease in interest expense, partially offset by a $1.2 million decrease in total interest income during the three months ended March 31, 2026, compared to three months ended March 31, 2025.
Previous 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.
Current wording
Interest income decreased $1.2 million for the three months ended March 31, 2026, compared to the three months ended March 31, 2025, primarily due to a $2.8 million decrease in interest income on LHFI, partially offset by a $1.2 million increase in interest income on investment securities. The decrease in interest income on LHFI was primarily due to lower yields, which reduced interest income by $4.9 million. The decrease in yields was primarily driven by lower yields on commercial and industrial loans, which declined to 6.62% for the three months ended March 31, 2026, from 7.37% for the three months ended March 31, 2025, and reduced interest income by $3.8 million. The impact of lower yields was partially offset by a $2.1 million increase in interest income attributable to higher average LHFI balances, primarily due to increases in average balances in mortgage warehouse lines of credit, commercial and industrial and multifamily residential real estate loans, respectively, partially offset by lower average balances in construction/land/land development loans. The $1.2 million increase in interest income earned 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.
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 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.
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, October 29, 2025, and December 10, 2025, the Federal Reserve Board reduced the federal funds target rate range by 25 basis points each, to a range of 3.50% to 3.75%, and has maintained the federal funds target rate unchanged since December 10, 2025.
Previous 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.
Current wording
The NIM-FTE was 3.71% for the three months ended March 31, 2026, a 27-basis point increase from 3.44% for the three months ended March 31, 2025. The improvement was mainly driven by an expanding interest rate spread, as the 63-basis-point decline in the average cost of total interest-bearing liabilities exceeded the 23-basis-point decline in the yield earned on interest-earning assets for the three months ended March 31, 2026, compared to the three months ended March 31, 2025. The average rate on total interest-bearing liabilities for the three months ended March 31, 2026, was 2.67%, compared to 3.30% for the three months ended March 31, 2025. The average yield earned on total interest-earning assets for the three months ended March 31, 2026, was 5.56%, compared to 5.79% for the three months ended March 31, 2025.
Previous wording
(2)In order to present pre-tax income and resulting yields on tax-exempt investments comparable to those on taxable investments, a tax-equivalent adjustment has been computed. This adjustment also includes income tax credits received on Qualified School Construction Bonds and income from tax-exempt investments, and tax credits were computed using a federal income tax rate of 21%.
Current wording
(3)In order to present pre-tax income and resulting yields on tax-exempt investments comparable to those on taxable investments, a tax-equivalent adjustment has been computed. This adjustment also includes income tax credits received on Qualified School Construction Bonds and income from tax-exempt investments, and tax credits were computed using a federal income tax rate of 21%.
Previous wording
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 wording
Noninterest income for the three months ended March 31, 2026, increased by $1.2 million, or 7.6%, to $16.8 million, compared to $15.6 million for the three months ended March 31, 2025, primarily due to an increase of $1.7 million in changes in insurance commission and fee income.
Previous 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.
Current wording
Noninterest expense for the three months ended March 31, 2026, increased by $1.7 million, or 2.8%, to $63.8 million, compared to $62.1 million for the three months ended March 31, 2025, primarily due to increases of $1.4 million, $1.1 million and $666,000 in professional services, data processing and salaries and employee benefits, respectively. These increases were offset by a decrease of $1.6 million in occupancy and equipment, net.
Previous 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.
Current wording
Total liabilities increased by $449.8 million, or 5.3%, to $8.93 billion at March 31, 2026, from $8.48 billion at December 31, 2025. Total deposits increased by $449.0 million, or 5.4%, to $8.76 billion at March 31, 2026, from $8.31 billion at December 31, 2025, primarily due to increases of $237.2 million, $154.2 million and $83.1 million in money market, interest-bearing demand and noninterest-bearing deposits, respectively. These increases were partially offset by a $32.1 million decrease in time deposits.
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 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.
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 March 31, 2026, 74.4% 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 existing market areas, compared to 73.7% at December 31, 2025.
Previous 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.
Current wording
(1)Includes owner-occupied commercial real estate of $999.4 million and $1.00 billion at March 31, 2026, and December 31, 2025, respectively.
Previous 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.
Current wording
At March 31, 2026, total LHFI were $7.86 billion, an increase of $193.3 million, or 2.5%, compared to $7.67 billion at December 31, 2025. The increase was primarily driven by growth of $183.9 million and $30.1 million in commercial and industrial loans and construction/land/land development loans, respectively. The growth was partially offset by a decline of $13.3 million in commercial real estate loans. Total LHFI at March 31, 2026, excluding mortgage warehouse lines of credit, were $7.34 billion, reflecting an increase of $199.8 million, or 2.8%, compared to December 31, 2025.
Previous 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.
Current wording
A significant portion, 31.9%, of our LHFI portfolio at March 31, 2026, 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
As explained in detail in Part I, Note 13 — Commitments and Contingencies under Loss Contingencies, and as discussed in previous filings, our classified and nonperforming LHFI were negatively impacted beginning in the second quarter of 2024 as a result of litigation against the bank brought in response to certain questioned activity involving a former banker in our East Texas market. We continue to work toward a resolution in this matter.
Current wording
As explained in detail in Part I, Note 10 — Commitments and Contingencies under Loss Contingencies, and as discussed in previous filings, our classified and nonperforming LHFI were negatively impacted beginning in the second quarter of 2024 as a result of certain questioned activity involving a former banker in our East Texas market. We continue to work toward a resolution in this matter.
Previous 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.
Current wording
The ALCL to nonperforming LHFI decreased to 113.46% at March 31, 2026, compared to 119.21% at December 31, 2025, primarily driven by an increase of $6.1 million in the Company’s nonperforming LHFI as explained in the preceding Nonperforming Assets section, during the three months ended March 31, 2026.
Previous 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.
Current wording
Our available for sale portfolio totaled $1.15 billion at March 31, 2026, and represented 98.6% of our total security portfolio and was comprised of 41.1% mortgage-backed, 24.9% municipal, 29.2% collateralized mortgage obligations, 4.5% corporate and 0.3% treasury/agency securities. Our available for sale portfolio totaled $1.12 billion at December 31, 2025, and represented 98.5% of our total security portfolio and was comprised of 42.0% mortgage-backed, 26.4% municipal, 26.3% collateralized mortgage obligations, 5.0% corporate and 0.3% treasury/agency securities.
Previous 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.
Current wording
The securities portfolio had a weighted average effective duration of 4.14 years at March 31, 2026, compared to 4.15 years at December 31, 2025. 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 $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 wording
Total deposits increased $449.0 million, or 5.4%, at March 31, 2026, compared to December 31, 2025, with increases of $237.2 million, $154.2 million, and $83.1 million in money market, interest-bearing demand, and noninterest-bearing demand, respectively. $215.0 million of the increase related to deposit growth that occurred during 2025 but was not reflected in the deposit balance at December 31, 2025, due to the sale of such deposit on December 31, 2025, and subsequent repurchase on January 2, 2026. The additional deposit funding was primarily used to increase cash and cash equivalents by $242.0 million and LHFI by $193.3 million when comparing March 31, 2026, to December 31, 2025.
Previous 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.
Current 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.
Previous 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.
Current wording
Our average deposit balances were $8.65 billion for the three months ended March 31, 2026, an increase of $299.2 million, or 3.6%, from $8.35 billion for the three months ended March 31, 2025. The average rate paid on our interest-bearing deposits for the three months ended March 31, 2026, was 2.66%, compared to 3.23% for the three months ended March 31, 2025.
Previous wording
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.
Current wording
Average noninterest-bearing deposits were $1.98 billion for the three months ended March 31, 2026, an increase of $140.7 million, or 7.7%, from $1.84 billion for the three months ended March 31, 2025, and represented 22.9% and 22.0% of average total deposits for the three months ended March 31, 2026 and 2025, respectively.
Previous wording
The estimated total amount of uninsured deposits at September 30, 2025, and December 31, 2024, was $3.87 billion and $3.66 billion, respectively, including $690.9 million and $862.9 million in public fund deposits collateralized by pledged assets, respectively.
Current wording
The amount of deposits in excess of the FDIC insurance limit at March 31, 2026, and December 31, 2025 was $3.99 billion and $3.93 billion, respectively, including $840.4 million and $860.0 million in public fund deposits collateralized by pledged assets, respectively.
Previous wording
We were eligible to borrow an additional $2.35 billion and $2.15 billion from the FHLB at September 30, 2025 and December 31, 2024, respectively.
Current wording
We were eligible to borrow an additional $2.40 billion and $2.39 billion from the FHLB at March 31, 2026 and December 31, 2025, respectively.
Previous wording
Additionally, at September 30, 2025, we had the ability to borrow $1.28 billion from the discount window at the FRBD, with $1.48 billion in commercial and industrial loans pledged as collateral. There were no borrowings against this line at September 30, 2025, or December 31, 2024.
Current wording
Additionally, at March 31, 2026, we had the ability to borrow $1.33 billion from the discount window at the FRBD, with $1.51 billion in commercial and industrial loans pledged as collateral. There were no borrowings against this line at March 31, 2026, or December 31, 2025.
Previous wording
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.
Current wording
During the three months ended March 31, 2026, the Company repurchased a total of 165,500 shares of its common stock pursuant to its July 2025 stock repurchase program at an average price per share of $41.27, for an aggregate purchase price of $6.8 million, including broker commissions and applicable excise taxes. There was $31.7 million remaining available for repurchases at March 31, 2026.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
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, October 29, 2025, and December 10, 2025, the Federal Reserve Board reduced the federal funds target rate range by 25 basis points each, to a range of 3.50% to 3.75%, and has maintained the federal funds target rate unchanged since December 10, 2025.
Rearranged previous paragraphs (9)
Previous report — wording carried elsewhere
Comparison of Results of Operations for the Nine Months Ended September 30, 2025 and 2024
Previous report — wording carried elsewhere
Net Interest Income and Net Interest Margin
Previous report — wording carried elsewhere
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 report — wording carried elsewhere
(1)Nonaccrual loans are included in their respective loan category for the purpose of calculating the yield earned. All average balances are daily average balances.
Previous report — wording carried elsewhere
(2)In order to present pre-tax income and resulting yields on tax-exempt investments comparable to those on taxable investments, a tax-equivalent adjustment has been computed. This adjustment also includes income tax credits received on Qualified School Construction Bonds and income from tax-exempt investments, and tax credits were computed using a federal income tax rate of 21%.
Previous report — wording carried elsewhere
The following tables present the dollar amount of changes in interest income and interest expense for major components of interest-earning assets and interest-bearing liabilities. It distinguishes between the changes related to outstanding balances and those due to changes in interest rates. The change in interest attributable to rate changes has been determined by applying the change in rate between periods to average balances outstanding in the earlier period. The change in interest due to volume has been determined by applying the rate from the earlier period to the change in average balances outstanding between periods. For purposes of the below table, changes attributable to both rate and volume that cannot be segregated, including the difference in day count, have been allocated to rate.
Previous report — wording carried elsewhere
The table below presents the various components of and changes in our noninterest income for the periods indicated.
Previous report — wording carried elsewhere
The following table presents the significant components of noninterest expense for the periods indicated:
Previous report — wording carried elsewhere
(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.