Origin Bancorp, Inc.
For the period ended Jun 30, 2026. Filed Aug 5, 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.
Jun 30, 2026 · Filed Aug 5, 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 2026-03-31; filed 2026-05-06.
0001516912-26-000032
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-08-05.
0001516912-26-000046
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 133 previous paragraphs and 179 current paragraphs.
88 unchanged; 35 reworded; 46 added; 10 removed; 0 previous and 10 current paragraphs rearranged.
Tables are not compared: 15 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 (46)
Current report
2026 Second Quarter Key Metrics
Current report
•Net income was $33.8 million three months ended June 30, 2026, reflecting an increase of $19.2 million, or 131.1%, compared to the three months ended June 30, 2025.
Current report
•Net interest income was $92.2 million for the three months ended June 30, 2026, reflecting an increase of $10.1 million, or 12.3%, compared to the three months ended June 30, 2025.
Current report
Total provision expense decreased by $2.8 million, to $65,000 for the three months ended June 30, 2026, from $2.9 million for the three months ended June 30, 2025, primarily due to a $3.1 million decrease in provision expense for loan credit losses. The decrease was primarily the result of lower risk embedded in our loan portfolio, evidenced by the reduction in historical loss factors within the CECL model, lower charge-offs on loans that were not previously reserved, and favorable net credit migration, partially offset by reserve increases associated with new loan production. Net credit migration reflects the combined impact of loan risk rating changes, specific reserve adjustments, and loan balance movements, such as loan balance changes and payoffs.
Current report
Net charge-offs decreased $1.8 million, to $454,000 for the three months ended June 30, 2026, from $2.3 million for the three months ended June 30, 2025. The decrease was mainly attributable to a $1.2 million reduction in total charge-offs, mainly driven by a $1.3 million decrease in commercial and industrial loan charge-offs, together with a $641,000 increase in recoveries, also primarily in commercial and industrial loans. The allowance for loan credit losses to nonperforming LHFI increased to 125.05% for the three months ended June 30, 2026, compared to 108.33% for the three months ended June 30, 2025. The increase in the ratio is primarily the result of a $6.8 million decrease in nonperforming LHFI, primarily due to a $5.6 million decrease in nonperforming commercial and industrial loans, together with a $5.8 million increase in the allowance for loan credit loss, for the three months ended June 30, 2026, compared to three months ended June 30, 2025, primarily driven by an increase in collective reserves.
Current report
N/M = Not meaningful.
Current report
Noninterest income for the three months ended June 30, 2026, increased by $14.0 million to $15.4 million, compared to $1.4 million for the three months ended June 30, 2025. The increase was primarily driven by a $14.4 million increase in gain (loss) on sales of securities, net, and a $1.3 million reduction in equity method investment losses. These favorable variances were partially offset by decreases of $1.4 million and $521,000 in swap fee income and mortgage banking revenue, respectively.
Current report
Gain (loss) on sales of securities, net. The increase in gain (loss) on sales of securities, net, resulted from a $14.4 million loss recognized during the three months ended June 30, 2025, as a result of our bond portfolio optimization strategy in conjunction with our Optimize Origin initiative.
Current report
Equity method investment loss. The $1.3 million decrease in equity method investment loss was primarily attributable to a net $638,000 reduction in losses primarily resulting from offsetting variances in two limited partnership investments during the three months ended June 30, 2026, compared with the same period in 2025. Additionally, the Company recognized $668,000 of income from its equity investment in Argent Financial during the three months ended June 30, 2026, further contributing to the improvement.
Current report
Swap fee income. The $1.4 million decrease in swap fee income was the result of lower customer swap activity during the current quarter, reflecting reduced demand for hedging solutions compared to the three months ended June 30, 2025.
Current report
Mortgage banking revenue. The $521,000 decrease in mortgage banking revenue was primarily due to the restructuring of our mortgage banking operations which was completed as part of Optimize Origin.
Current report
Noninterest expense for the three months ended June 30, 2026, increased by $2.4 million, or 3.9%, to $64.4 million, compared to $62.0 million for the three months ended June 30, 2025, primarily due to increases of $2.1 million, $524,000, and $492,000 in salaries and employee benefits, professional services, and advertising and marketing, respectively. These increases were offset by decreases of $525,000 and $424,000 in other expense and electronic banking, respectively.
Current report
Advertising and marketing. The $492,000 increase in advertising and marketing expenses was primarily due to targeted marketing campaigns during the three months ended June 30, 2026, compared to the three months ended June 30, 2025.
Current report
Other noninterest expense. The $525,000 decrease in other noninterest expense was primarily due to a $389,000 release of litigation reserve during the three months ended June 30, 2026.
Current report
Electronic banking. The $424,000 decrease in electronic banking expense was primarily driven by a total decrease of $453,000 in card processing and mobile banking expenses, predominantly as a result of contract renegotiations mentioned above in Professional services.
Current report
Our net income increased $24.5 million, or 66.1%, to $61.5 million for the six months ended June 30, 2026, from $37.1 million for the six months ended June 30, 2025. On a diluted EPS basis, we reported $1.97 per share for the six months ended June 30, 2026, compared to $1.18 per share for the six months ended June 30, 2025.
Current report
Net interest income for the six months ended June 30, 2026, was $179.4 million, an increase of $18.8 million, or 11.7%, compared to the six months ended June 30, 2025. The increase in net interest income was predominantly driven by a $19.0 million decrease in interest expense while total interest income remained relatively stable.
Current report
The $19.0 million decrease in interest expense was mainly attributable to decreases of $16.2 million and $2.9 million in interest expense on interest-bearing deposits and subordinated indebtedness, respectively. The decrease in interest expense on interest-bearing deposits was primarily driven by lower rates, which reduced interest expense on money market, interest-bearing demand and time deposits by $10.4 million, $5.3 million and $1.9 million, respectively. The benefit from lower deposit rates was partially offset by a $5.0 million increase in interest expense on money market deposits due to higher average balances, while lower average time deposit balances reduced interest expense by $2.6 million. The $2.9 million decrease in interest expense on subordinated indebtedness was primarily attributable 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 debentures to $16.6 million for the six months ended June 30, 2026, from $106.8 million for the six months ended June 30, 2025.
Current report
Total interest income remained stable for the comparable periods, but was impacted by lower yields on loans held for investment, which reduced interest income by $8.6 million, partially offset by higher average loan balances, which increased interest income by $6.6 million. Additionally, an increase in yield on taxable investment securities contributed $2.0 million to the increase in interest income during the six months ended June 30, 2026, compared to six months ended June 30, 2025. Of the $8.6 million decrease in interest income attributable to lower yields, $7.4 million and $1.2 million were attributable to commercial and industrial and mortgage warehouse lines of credit, respectively. Of the $6.6 million increase in interest income attributable to higher average loan balances, $4.0 million, $3.1 million, $2.3 million and $2.0 million were attributable to commercial and industrial, commercial real estate, multifamily residential real estate, and mortgage warehouse lines of credit, respectively, partially offset by a $4.4 million decrease in interest income on construction/land/land development loans. 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 with the most recent transaction occurring in June 2025, in conjunction with our Optimize Origin initiative.
Current report
Rate/Volume Analysis
Current report
Provision for Credit Losses
Current report
We recorded a provision expense of $5.0 million for the six months ended June 30, 2026, a $1.3 million decrease from $6.3 million for the six months ended June 30, 2025. The decrease primarily reflected a $1.8 million decrease in the provision for loan credit losses, driven by lower net charge-offs on loans that were not previously reserved and reductions in historical loss factors within the CECL model, partially offset by reserve increases associated with new loan production and net credit migration. Net credit migration reflects the combined impact of loan risk rating changes, specific reserve adjustments, and loan balance movements, such as loan balance changes and payoffs.
Current report
Net charge-offs decreased $1.8 million, to $3.2 million for the six months ended June 30, 2026, from $5.0 million for the six months ended June 30, 2025, primarily driven by lower net charge-offs on commercial and industrial loans. Net charge-offs to total average LHFI decreased to 0.08% for the six months ended June 30, 2026, from 0.13% for the six months ended June 30, 2025.
Current report
Noninterest Income
Current report
Noninterest income for the six months ended June 30, 2026, increased by $15.2 million, or 89.7%, to $32.2 million, compared to $17.0 million for the six months ended June 30, 2025. The increase was primarily due to improvements of $14.4 million, $1.9 million, $1.5 million, and $642,000 in gain (loss) on sales of securities, net, insurance commission and fee income, equity method investment loss, and service charges and fees, respectively. The increases were partially offset by decreases of $1.9 million and $873,000 in swap fee income and mortgage banking revenue, respectively.
Current report
Gain (loss) on sales of securities, net. The increase in gain (loss) on sales of securities, net, resulted from a $14.4 million loss recognized during the six months ended June 30, 2025, as a result of our bond portfolio optimization strategy in conjunction with our Optimize Origin initiative.
Current report
Insurance commission and fee income. The $1.9 million increase in insurance commission and fee income is the result of new business production, combined with strong renewal retention rates, in both the agency bill and property and casualty direct bill market sectors.
Current report
Equity method investment loss. The $1.5 million decrease in equity method investment loss was primarily driven by Argent Financial equity investment income of $2.4 million recognized during the six months ended June 30, 2026, partially offset by an increase of $989,000 in limited partnership investment losses recognized during the six months ended June 30, 2026, compared to the same period in 2025.
Current report
Service charges and fees. The $642,000 increase in service charges and fees for the six months ended June 30, 2026 compared to the six months ended June 30, 2025, was primarily due to a $970,000 increase in business checking account analysis fees, partially offset by decreases totaling $422,000 in ACH and miscellaneous deposit fee income.
Current report
Swap fee income. The $1.9 million decrease in swap fee income was the result of lower customer swap activity demand during the six months ended June 30, 2026, reflecting reduced demand for hedging solutions compared to the six months ended June 30, 2025.
Current report
Mortgage banking revenue. The $873,000 decrease in mortgage banking revenue compared to the six months ended June 30, 2025, was primarily due to the restructuring of our mortgage banking operation which was completed as part of Optimize Origin.
Current report
Noninterest Expense
Current report
Noninterest expense for the six months ended June 30, 2026, increased by $4.2 million, or 3.4%, to $128.2 million, compared to $124.1 million for the six months ended June 30, 2025, primarily due to increases of $2.8 million, $1.9 million, $1.4 million, $719,000, and $672,000 in salaries and employee benefits, professional services, data processing, advertising and marketing, and loan-related expenses, respectively. These increases were partially offset by decreases of $1.5 million and $637,000 in occupancy and equipment, net and other expense, respectively.
Current report
Salaries and employee benefits. The $2.8 million increase in salaries and employee benefits expense was primarily driven by an increase of $3.3 million in incentive compensation, which includes stock-based compensation. Also contributing to the increase was a net increase in salaries of $1.3 million primarily due annual merit increases and a net increase of 13 FTE employees. These increases were partially offset by a reduction of $2.2 million in medical costs primarily due to favorable adjustments to prior estimates recognized during the three months ended March 31, 2026.
Current report
Professional Services. The $1.9 million increase in professional services expense was primarily due to a $1.2 million increase in consultant fees for the six months ended June 30, 2026, compared to six months ended June 30, 2025, related to contract renegotiations which is expected to result in meaningful technology expense savings.
Current report
Advertising and marketing. The $719,000 increase in advertising and marketing expense was primarily due to targeted marketing campaigns during the six months ended June 30, 2026, compared to the six months ended June 30, 2025.
Current report
Loan-related expenses. The $672,000 increase in loan-related expenses was primarily driven by a $726,000 increase in loan related legal fees for the six months ended June 30, 2026.
Current report
Occupancy and equipment, net. The $1.5 million decrease in occupancy and equipment, net expense was primarily driven by a decrease of $1.1 million in depreciation expense. Of this decrease, $878,000 was attributed to leasehold improvements and $403,000 attributed to furniture, fixtures and equipment depreciation, both primarily as a result of the closure of six branch locations during 2025 in conjunction with Optimize Origin.
Current report
Other noninterest expense. The $637,000 decrease in other noninterest expense was primarily due to decreases of $389,000 and $275,000 as a result of a release of litigation reserve and lower other real estate owned maintenance costs, respectively, during the six months ended June 30, 2026, compared to the six months ended June 30, 2025.
Current report
Total deposits increased $396.0 million, or 4.8%, at June 30, 2026, compared to December 31, 2025, with increases of $280.1 million and $258.2 million in noninterest-bearing demand and money market, respectively, offset with decreases of $72.6 million and $71.1 million in interest-bearing demand and time deposits, respectively. The increase in deposits from December 31, 2025, was driven in part by the repurchase on January 2, 2026, of $215.0 million in money market deposits that were sold on December 31, 2025. The increase in money market deposits at June 30, 2026, excluding the $215.0 million repurchase, was $43.3 million, or 1.2%, compared to December 31, 2025.
Showing the first 40 of 46 passages. Open the source sections for the rest.
Removed paragraphs (10)
Previous report
2026 First Quarter Key Metrics
Previous report
•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 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.
Previous 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.
Previous 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.
Previous report
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 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.
Previous report
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 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.
Previous report
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.
Reworded paragraphs (35)
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 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.
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, 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
•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 wording
•As announced in our Fourth Quarter and Full Year 2025 Earnings Release, our near term ROAA run rate target is 1.15% or higher by 4Q26, as we continue towards our ultimate top quartile ROAA target.
Previous 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.
Current wording
•Our fully tax equivalent net interest margin (“NIM-FTE”) increased 31 basis points for the quarter ended June 30, 2026, compared to the quarter ended June 30, 2025. This expansion was driven primarily by a 58-basis point reduction in rates paid on interest-bearing liabilities, offset by a 13-basis point decline in our yield earned on interest-earning assets.
Previous wording
•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 wording
•Total loans held for investment (“LHFI”) were $8.07 billion at June 30, 2026, reflecting an increase of $402.7 million, or 5.2%, compared to December 31, 2025. LHFI, excluding mortgage warehouse lines of credit, were $7.48 billion at June 30, 2026, reflecting an increase of $341.7 million, or 4.8%, compared to December 31, 2025.
Previous 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.
Current wording
•Total deposits were $8.70 billion at June 30, 2026, reflecting an increase of $396.0 million, or 4.8%, compared to December 31, 2025. Noninterest-bearing deposits were $2.26 billion, reflecting an increase of $280.1 million, or 14.1%, compared to December 31, 2025.
Previous 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.
Current wording
•During the quarter ended June 30, 2026, we repurchased 217,034 shares of our common stock at an average price of $46.60 per share, including broker commissions and applicable excise taxes. Also, in July 2026, our board of directors approved a $100 million increase in repurchase authority under our stock repurchase program, which expires in July 2028.
Previous wording
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 wording
Our net income increased $19.2 million, or 131.1%, to $33.8 million for the three months ended June 30, 2026, from $14.6 million for the three months ended June 30, 2025. Diluted EPS increased $0.62 to $1.09 per share for the three months ended June 30, 2026, compared to $0.47 per share for the three months ended June 30, 2025. The increase was primarily due to increases of $14.0 million and $10.1 million in noninterest income and net interest income, respectively. Also contributing to the increase was a $2.8 million decrease in provision expense for credit losses. These increases were partially offset by an increase of $2.4 million in noninterest expense for the three months ended June 30, 2026, compared to the three months ended June 30, 2025.
Previous 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.
Current wording
Net interest income for the three months ended June 30, 2026, was $92.2 million, an increase of $10.1 million, or 12.3%, compared to the three months ended June 30, 2025. The increase was due to a $9.0 million decrease in interest expense and an increase of $1.1 million in total interest income during the three months ended June 30, 2026, compared to three months ended June 30, 2025.
Previous wording
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 wording
The $9.0 million decrease in interest expense was mainly due to decreases of $8.2 million and $894,000 in interest expense on interest-bearing deposits and subordinated indebtedness, respectively. Of the $8.2 million decline in interest-bearing deposits, $9.0 million was attributable to lower interest rates, partially offset by a $898,000 increase resulting from higher average balances, during the three months ended June 30, 2026, compared to the three months ended June 30, 2025. The $9.0 million decrease due to lower rates was primarily due to decreases of $5.2 million, $2.6 million and $872,000 on money market, interest-bearing demand and time deposits, respectively. The benefit of these lower rates was partially offset by a $898,000 increase in interest expense attributable to higher average balances, as average interest-bearing deposit balances increased $105.0 million to $6.38 billion for the three months ended June 30, 2026, from $6.28 billion for the three months ended June 30, 2025. This increase was primarily driven by a $224.1 million increase in average money market deposit balances, which increased interest expense by $1.9 million, partially offset by a $102.9 million decrease in average time deposit balances, which reduced interest expense by $997,000. In addition, interest expense on subordinated debentures decreased $894,000 for the three months ended June 30, 2026, primarily due to the redemption of $74.0 million in principal amount of subordinated debentures during the quarter ended December 31, 2025, which reduced the average balance of subordinated debenture to $16.6 million for the three months ended June 30, 2026, from $89.6 million for the three months ended June 30, 2025.
Previous 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.
Current wording
Interest income increased $1.1 million for the three months ended June 30, 2026, compared to the three months ended June 30, 2025, primarily due to increases of $1.4 million and $783,000 in interest income on investment securities and interest income on LHFI, partially offset by a $885,000 decrease in interest income on non-marketable equity securities held in other financial institutions. The $1.4 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, with the most recent transaction occurring in June 2025, in conjunction with our Optimize Origin initiative. Of the $783,000 increase in interest income on LHFI, $4.5 million was due to higher average balances, which was offset by a $3.7 million decrease due to lower yields. The $4.5 million increase in interest income attributable to higher average LHFI balances was primarily due to increases in average balances in commercial and industrial, commercial real estate, and multifamily residential real estate loans, respectively. The impact of larger average balances was partially offset by $3.7 million due to lower yields primarily attributable to commercial and industrial loans, which declined to 6.65% for the three months ended June 30, 2026, from 7.30% for the three months ended June 30, 2025, and reduced interest income by $3.6 million.
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, 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.
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. The Federal Reserve Board reduced the federal funds target rate range three times, for a total of 75 basis points, during the second half of 2025, to a range of 3.50% to 3.75%, and has maintained the range unchanged since December 10, 2025.
Previous 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.
Current wording
The NIM-FTE was 3.92% for the three months ended June 30, 2026, a 31-basis point increase from 3.61% for the three months ended June 30, 2025. The improvement was mainly driven by an expanding interest rate spread, as the 58-basis-point decline in the average cost of total interest-bearing liabilities exceeded the 13-basis-point decline in the yield earned on interest-earning assets for the three months ended June 30, 2026, compared to the three months ended June 30, 2025. The average rate on total interest-bearing liabilities for the three months ended June 30, 2026, was 2.67%, compared to 3.25% for the three months ended June 30, 2025. The average yield earned on total interest-earning assets for the three months ended June 30, 2026, was 5.74%, compared to 5.87% for the three months ended June 30, 2025.
Previous wording
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 wording
Salaries and employee benefits. The $2.1 million increase in salaries and employee benefits was primarily due to a $1.5 million increase in incentive compensation expense, including a $1.0 million increase in bonuses driven by improved performance. Also contributing to the increase was a net increase in salaries of $900,000 primarily due to annual merit increases and a net increase of 13 full-time equivalent (“FTE”) employees.
Previous wording
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 wording
Professional services. The $524,000 increase in professional services was primarily due to a $526,000 increase in consultant fees for the three months ended June 30, 2026, compared to the three months ended June 30, 2025, related to contract renegotiations which is expected to result in meaningful technology expense savings.
Previous wording
Data processing. The $1.1 million increase in data processing was primarily due to an increase of $791,000 in software related expense.
Current wording
Data processing. The $1.4 million increase in data processing expense was primarily due to an increase of $1.1 million in software-related costs resulting from higher contract fees and the implementation of new loan origination and relationship management software.
Previous wording
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 wording
Total assets increased by $552.2 million, or 5.7%, to $10.28 billion at June 30, 2026, from $9.72 billion at December 31, 2025. The increase was primarily driven by increases of $402.7 million and $122.3 million in LHFI and cash and cash equivalents, respectively. LHFI were $8.07 billion at June 30, 2026, an increase of 5.2% from $7.67 billion at December 31, 2025. Cash and cash equivalents were $546.5 million at June 30, 2026, an increase of 28.8% from $424.2 million at December 31, 2025.
Previous 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.
Current wording
Total liabilities increased by $517.8 million, or 6.1%, to $9.00 billion at June 30, 2026, from $8.48 billion at December 31, 2025. The increase was primarily driven by increases of $396.0 million and $117.8 million in total deposits and FHLB advances and other borrowings, respectively. Total deposits were $8.70 billion at June 30, 2026, an increase of 4.8% from $8.31 billion at December 31, 2025, primarily due to increases of $280.1 million and $258.2 million in noninterest-bearing and money market deposits, respectively. These increases were partially offset by a $72.6 million and a $71.1 million decrease in interest-bearing demand deposits and time deposits, respectively. FHLB advances and other borrowings increased $117.8 million to $136.9 million at June 30, 2026, from $19.1 million at December 31, 2025.
Previous wording
Our loan portfolio is our largest category of interest-earning assets, and interest income earned on our loan portfolio is our primary source of income. At March 31, 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.
Current wording
Our loan portfolio is our largest category of interest-earning assets, and interest income earned on our loan portfolio is our primary source of income. At June 30, 2026, 75.1% 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 $999.4 million and $1.00 billion at March 31, 2026, and December 31, 2025, respectively.
Current wording
(1)Includes owner-occupied commercial real estate of $1.05 billion and $1.00 billion at June 30, 2026, and December 31, 2025, respectively.
Previous 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.
Current wording
At June 30, 2026, total LHFI were $8.07 billion, an increase of $402.7 million, or 5.2%, compared to $7.67 billion at December 31, 2025. The increase was primarily driven by growth of $152.4 million, $107.8 million, $87.4 million and $60.9 million in commercial and industrial loans, commercial real estate loans, construction/land/land development loans and mortgage warehouse lines of credit, respectively. The growth was partially offset by a decline of $19.3 million in single-family residential real estate loans. Total LHFI at June 30, 2026, excluding mortgage warehouse lines of credit, were $7.48 billion, reflecting an increase of $341.7 million, or 4.8%, compared to December 31, 2025.
Previous 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.
Current wording
A significant portion, 32.6%, of our LHFI portfolio at June 30, 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
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 wording
Nonperforming LHFI decreased $2.7 million at June 30, 2026, compared to December 31, 2025, and nonperforming LHFI to LHFI decreased to 0.97% compared to 1.06%. The decrease in nonperforming LHFI was driven by decreases in the single-family residential real estate and commercial and industrial sectors, partially offset by an increase in the commercial real estate sector. Please see Note 4 — Loans to our consolidated financial statements contained in Part I, Item 1 of this report for more information on nonperforming loans.
Previous wording
The ALCL to nonperforming LHFI decreased to 113.46% 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.
Current wording
The ALCL to nonperforming LHFI increased to 125.05% at June 30, 2026, compared to 119.21% at December 31, 2025, primarily driven by a decrease of $2.7 million in the Company’s nonperforming LHFI as explained in the preceding Nonperforming Assets section, during the six months ended June 30, 2026.
Previous wording
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 wording
Our securities portfolio totaled $1.16 billion at June 30, 2026, representing an increase of $24.7 million, or 2.2% 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 six months ended June 30, 2026.
Previous 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.
Current wording
Our available for sale portfolio totaled $1.14 billion at June 30, 2026, and represented 98.6% of our total security portfolio and was comprised of 40.5% mortgage-backed, 25.6% municipal, 28.5% collateralized mortgage obligations, 4.3% corporate and 1.1% 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 4.14 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.
Current wording
The securities portfolio had a weighted average effective duration of 4.08 years at June 30, 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
(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.
Current wording
(1)Average brokered deposits include average brokered time deposits and average brokered interest-bearing demand of $46.3 million and $1,000, respectively, for the six months ended June 30, 2025.
Previous 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.
Current wording
Our average deposit balances were $8.55 billion for the six months ended June 30, 2026, an increase of $301.6 million, or 3.7%, from $8.25 billion for the six months ended June 30, 2025. The average rate paid on our interest-bearing deposits for the six months ended June 30, 2026, was 2.65%, compared to 3.21% for the six months ended June 30, 2025.
Previous 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.
Current wording
Average noninterest-bearing deposits were $2.03 billion for the six months ended June 30, 2026, an increase of $170.1 million, or 9.1%, from $1.86 billion for the six months ended June 30, 2025, and represented 23.7% and 22.5% of average total deposits for the six months ended June 30, 2026 and 2025, respectively.
Previous 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.
Current wording
The amount of deposits in excess of the FDIC insurance limit at June 30, 2026, and December 31, 2025 was $4.19 billion and $3.93 billion, respectively, including $737.4 million and $860.0 million in public fund deposits collateralized by pledged assets, respectively.
Previous wording
Other sources available for meeting liquidity needs include long- and short-term advances from the FHLB and unsecured federal funds lines of credit. Long-term funds obtained from the FHLB are primarily used as an alternative source to fund long-term growth of the balance sheet by supporting growth in loans and other long-term interest-earning assets. We typically rely on such funding when the cost of such borrowings compares favorably to the rates that we would be required to pay for other funding sources, including certain deposits.
Current wording
Other sources available for meeting liquidity needs include long- and short-term advances from the FHLB, a holding company revolving credit loan and unsecured federal funds lines of credit. Long-term funds obtained from the FHLB are primarily used as an alternative source to fund long-term growth of the balance sheet by supporting growth in loans and other long-term interest-earning assets. We typically rely on such funding when the cost of such borrowings compares favorably to the rates that we would be required to pay for other funding sources, including certain deposits.
Previous 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.
Current wording
We were eligible to borrow an additional $2.17 billion and $2.39 billion from the FHLB at June 30, 2026 and December 31, 2025, respectively.
Previous 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.
Current wording
Additionally, at June 30, 2026, we had the ability to borrow $1.35 billion from the discount window at the FRBD, with $1.53 billion in commercial and industrial loans pledged as collateral. There were no borrowings against this line at June 30, 2026, or December 31, 2025.
Previous wording
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.
Current wording
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. In July 2026, our board of directors approved a $100 million increase in repurchase authority under this stock repurchase program. 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 July 2028 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.
Previous 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.
Current wording
During the three months ended June 30, 2026, the Company repurchased a total of 217,034 shares of its common stock pursuant to its July 2025 stock repurchase program at an average price per share of $46.60, for an aggregate purchase price of $10.1 million, including broker commissions and applicable excise taxes. There was $21.6 million available for repurchase at June 30, 2026, and an additional $100 million in repurchase authority was approved in July 2026.
Rearranged current paragraphs (10)
Current report — wording carried from elsewhere
Comparison of Results of Operations for the Six Months Ended June 30, 2026 and 2025
Current report — wording carried from elsewhere
Net Interest Income and Net Interest Margin
Current report — wording carried from elsewhere
The NIM-FTE was 3.82% for the six months ended June 30, 2026, a 30-basis point increase from 3.52% for the six months ended June 30, 2025. The improvement was mainly driven by an expanding interest rate spread, as the 60-basis-point decline in the average rate on total interest-bearing liabilities exceeded the 18-basis-point decline in the yield on interest-earning assets for the six months ended June 30, 2026, compared to the six months ended June 30, 2025. The average rate on total interest-bearing liabilities for the six months ended June 30, 2026, was 2.67%, compared to 3.27% for the six months ended June 30, 2025. The average yield on total interest-earning assets for the six months ended June 30, 2026, was 5.65%, compared to 5.83% for the six months ended June 30, 2025.
Current report — wording carried from 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 six months ended June 30, 2026 and 2025.
Current report — wording carried from 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.
Current report — wording carried from elsewhere
(2)Yields/Rates are calculated on an actual/actual day count basis.
Current report — wording carried from elsewhere
(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%.
Current report — wording carried from 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.
Current report — wording carried from elsewhere
The table below presents the various components of and changes in our noninterest income for the periods indicated.
Current report — wording carried from elsewhere
The following table presents the significant components of noninterest expense for the periods indicated: