Origin Bancorp, Inc.
For the period ended Sep 30, 2026. Filed Nov 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.
Sep 30, 2026 · Filed Nov 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 2026-06-30; filed 2026-08-05.
0001516912-26-000046
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-09-30; filed 2026-11-06.
0001516912-26-000067
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 179 previous paragraphs and 179 current paragraphs.
96 unchanged; 63 reworded; 19 added; 19 removed; 1 previous and 1 current paragraphs rearranged.
Tables are not compared: 20 previous and 20 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (19)
Current report
2026 Third Quarter Key Metrics
Current report
•Net interest income was $95.1 million for the three months ended September 30, 2026, reflecting an increase of $11.4 million, or 13.7%, compared to the three months ended September 30, 2025.
Current report
•In October 2026, our board approved an increase in our quarterly dividend from $0.25 to $0.28 per share, a 12% increase. Combined with the $0.10 per share increase approved in April 2026, the quarterly dividend has increased from $0.15 to $0.28 per share, or 87%, reflecting our strong balance sheet and durable earnings.
Current report
Noninterest income for the three months ended September 30, 2026, decreased by $8.0 million to $18.1 million, compared to $26.1 million for the three months ended September 30, 2025. The decrease was primarily driven by a $7.0 million decrease in the change in fair value of equity investments, a $1.9 million decrease in other income, and a decrease of $985,000 in swap fee income. These decreases were partially offset by increases of $737,000 and $509,000 in insurance commission and fee income and equity method investment income, respectively.
Current report
Change in fair value of equity investments. The decrease of $7.0 million in the change of fair value of equity investments was primarily due to a fair value adjustment during the three months ended September 30, 2025, associated with our additional investment in Argent Financial. Our additional investment during the three months ended September 30, 2025, increased our ownership percentage above the threshold required to apply the equity method of accounting, which required the investment to be recorded at fair value immediately prior to the additional investment.
Current report
Other income. The $1.9 million decrease in other income was primarily due to the prior-year recognition of $2.1 million in insurance recoveries related to the questioned banker activity first disclosed during the quarter ended June 30, 2024.
Current report
Insurance commission and fee income. The $737,000 increase in insurance commission and fee income is primarily the result of an increase of $544,000 in property and casualty insurance commission income during the three months ended September 30, 2026, compared to the three months ended September 30, 2025.
Current report
Equity method investment income. The $509,000 increase in equity method investment income was primarily attributable to a $613,000 increase in income recognized from the Company’s equity method investment in Argent Financial during the three months ended September 30, 2026.
Current report
Noninterest expense for the three months ended September 30, 2026, increased by $461,000, or 0.7%, to $62.5 million, compared to $62.0 million for the three months ended September 30, 2025, primarily due to an increase of $2.7 million in salaries and employee benefits. The increase was offset by decreases of $1.4 million and $526,000 in other expense and electronic banking, respectively.
Current report
Income Tax Expense
Current report
For the three months ended September 30, 2026, we recognized income tax expense of $10.3 million, compared to $2.4 million for the three months ended September 30, 2025. The effective tax rate for both the three months ended September 30, 2026, and the three months ended September 30, 2025, was 21.5%.
Current report
Total provision expense decreased by $35.5 million to $7.6 million for the nine months ended September 30, 2026, from $43.1 million for the nine months ended September 30, 2025, due to decreases of $34.1 million and $1.4 million in provision expense for loan credit losses and off-balance sheet commitments, respectively. The decrease was primarily attributable to the provision recorded during the nine months ended September 30, 2025, related to the borrower fraud impacting the Tricolor Holdings, LLC loan relationship, as discussed above.
Current report
Noninterest income for the nine months ended September 30, 2026, increased by $7.2 million, or 16.6%, to $50.3 million, compared to $43.1 million for the nine months ended September 30, 2025. The increase was primarily due to improvements of $14.4 million, $2.6 million and $2.0 million in loss on sales of securities, net, insurance commission and fee income and equity method investment loss, respectively. These increases were partially offset by decreases of $7.0 million, $2.9 million and $1.9 million in change in fair value of equity investments, swap fee income and other income, respectively.
Current report
Change in fair value of equity investments. The $7.0 million decrease in the change in fair value of equity investments was primarily due to the impact of our additional investment in Argent Financial during the nine months ended September 30, 2025. Our additional investment resulted in the application of the equity method of accounting and required an upward adjustment to fair value immediately prior to the purchase. There was no comparable adjustment for the nine months ended September 30, 2026.
Current report
Other income. The $1.9 million decrease in other income was primarily due to the prior-year recognition of $2.1 million in insurance recoveries related to the questioned banker activity first disclosed during the quarter ended June 30, 2024.
Current report
Electronic banking. The $862,000 decrease in electronic banking is primarily due to a $767,000 total decrease in card processing and mobile banking expenses for the nine months ended September 30, 2026, compared to the nine months ended September 30, 2025.
Current report
Income Tax Expense
Current report
For the nine months ended September 30, 2026, we recognized income tax expense of $27.2 million, compared to $12.5 million for the nine months ended September 30, 2025. Our effective tax rate was 21.5% for both the nine months ended September 30, 2026 and 2025.
Current report
Shareholders’ Equity
Removed paragraphs (19)
Previous report
2026 Second Quarter Key Metrics
Previous 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.
Previous 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.
Previous 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.
Previous 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.
Previous report
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 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.
Previous 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.
Previous 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.
Previous 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.
Previous 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.
Previous 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.
Previous 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.
Previous 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.
Previous report
Short-term fixed-rate FHLB advances totaled $125.0 million as of June 30, 2026, bearing an interest rate of 3.85%. These advances matured on July 1, 2026. Short-term FHLB advances are typically used as a liquidity management tool in order to meet temporary funding needs when loan growth outpaces deposit growth or to manage liquidity fluctuations.
Previous report
Stockholders’ Equity
Previous report
Critical Accounting Policies and Estimates
Previous report
SEC guidance requires disclosure of “critical accounting estimates.” The SEC defines “critical accounting estimates” as those estimates made in accordance with generally accepted accounting principles that involve a significant level of estimation uncertainty and have had or are reasonably likely to have a material impact on the financial condition or results of operations of the registrant.
Previous report
Our accounting policies are fundamental to understanding our management’s discussion and analysis of our results of operations and financial condition. We have identified certain significant accounting policies which involve a higher degree of judgment and complexity in making certain estimates and assumptions that affect amounts reported in our consolidated financial statements. Please see Note 1 — Significant Accounting Policies in the notes to our consolidated financial statements included in the Company's 2025 Form 10-K filed with the SEC for more information about our critical accounting policies and use of estimates.
Reworded paragraphs (63)
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, 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 (the "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, our near term ROAA run rate target is 1.15% or higher by 4Q26, as we continue towards our ultimate top quartile ROAA target.
Current wording
•We continue to work towards our ultimate top quartile ROAA target.
Previous wording
•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 wording
•Net income was $37.8 million three months ended September 30, 2026, reflecting an increase of $29.2 million, or 338.1%, compared to the three months ended September 30, 2025.
Previous 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.
Current wording
•Our fully tax equivalent net interest margin (“NIM-FTE”) increased 29 basis points for the quarter ended September 30, 2026, compared to the quarter ended September 30, 2025. This expansion was driven primarily by a 52-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 $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.
Current wording
•Total loans held for investment (“LHFI”) were $8.09 billion at September 30, 2026, reflecting an increase of $423.3 million, or 5.5%, compared to December 31, 2025. LHFI, excluding mortgage warehouse lines of credit, were $7.65 billion at September 30, 2026, reflecting an increase of $512.4 million, or 7.2%, compared to December 31, 2025.
Previous 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.
Current wording
•Total deposits were $8.67 billion at September 30, 2026, reflecting an increase of $365.9 million, or 4.4%, compared to December 31, 2025. Noninterest-bearing deposits were $2.18 billion, reflecting an increase of $196.6 million, or 9.9%, compared to December 31, 2025.
Previous 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.
Current wording
•During the quarter ended September 30, 2026, we repurchased 272,927 shares of our common stock at an average price of $54.21 per share, including broker commissions and applicable excise taxes.
Previous 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.
Current wording
Our net income increased $29.2 million, or 338.1%, to $37.8 million for the three months ended September 30, 2026, from $8.6 million for the three months ended September 30, 2025. Diluted EPS increased $0.95 to $1.22 per share for the three months ended September 30, 2026, compared to $0.27 per share for the three months ended September 30, 2025. The increase was primarily due to a decrease of $34.2 million in provision expense for credit losses and an increase of $11.4 million in pre-provision net interest income, partially offset by an $8.0 million decrease in noninterest income and an $8.0 million increase in income tax expense for the three months ended September 30, 2026, compared to the three months ended September 30, 2025.
Previous 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.
Current wording
Net interest income for the three months ended September 30, 2026, was $95.1 million, an increase of $11.4 million, or 13.7%, compared to the three months ended September 30, 2025. The increase was due to a $7.5 million decrease in interest expense and an increase of $3.9 million in total interest income during the three months ended September 30, 2026, compared to three months ended September 30, 2025.
Previous 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.
Current wording
The $7.5 million decrease in interest expense was mainly due to decreases of $6.9 million and $892,000 in interest expense on interest-bearing deposits and subordinated indebtedness, respectively. Of the $6.9 million decline in interest on interest-bearing deposits, $8.7 million was attributable to lower interest rates, partially offset by a $1.7 million net increase resulting from higher net average balances, during the three months ended September 30, 2026, compared to the three months ended September 30, 2025. The $8.7 million decrease in interest expense due to lower rates was primarily due to decreases of $5.6 million and $2.2 million in interest expense on money market and interest-bearing demand deposits, respectively. The benefit of these lower rates was partially offset by a $2.4 million increase in interest expense on money market deposit balances attributable to an increase of $267.8 million in average money market deposit balances for the three months ended September 30, 2026, compared to the three months ended September 30, 2025. In addition, interest expense on subordinated debentures decreased $892,000 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 September 30, 2026, from $89.7 million for the three months ended September 30, 2025.
Previous 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.
Current wording
Interest income increased $3.9 million for the three months ended September 30, 2026, compared to the three months ended September 30, 2025, primarily due to an increase of $5.4 million in interest income on LHFI, partially offset by a $1.7 million decrease in interest income on interest-earning balances due from banks. The $5.4 million increase in interest income on LHFI was primarily due to a $9.0 million increase in interest income due to higher average balances partially offset by a $3.6 million decrease due to lower yields. The $9.0 million increase in interest income attributable to higher average LHFI balances was primarily due to increases in average balances of $169.9 million, $193.3 million and $97.6 million in commercial and industrial, commercial real estate, and construction/land/land development loans, respectively. The impact of higher average balances was partially offset by $3.6 million due to lower yields primarily attributable to commercial and industrial loans, which declined to 6.67% for the three months ended September 30, 2026, from 7.22% for the three months ended September 30, 2025, and reduced interest income by $3.0 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%. On September 16, 2026, the Federal Reserve Board raised the federal funds target rate range by 25 basis points, to a range of 3.75% to 4.00%.
Previous 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.
Current wording
The NIM-FTE was 3.94% for the three months ended September 30, 2026, a 29-basis point increase from 3.65% for the three months ended September 30, 2025. The improvement was mainly driven by an expanding interest rate spread, as the 52-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 September 30, 2026, compared to the three months ended September 30, 2025. The average rate on total interest-bearing liabilities for the three months ended September 30, 2026, was 2.70%, compared to 3.22% for the three months ended September 30, 2025. The average yield earned on total interest-earning assets for the three months ended September 30, 2026, was 5.76%, compared to 5.89% for the three months ended September 30, 2025.
Previous wording
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 wording
Total provision expense decreased by $34.2 million, to $2.6 million for the three months ended September 30, 2026, from $36.8 million for the three months ended September 30, 2025, due to decreases of $32.4 million and $1.8 million in provision expense for loan credit losses and off-balance sheet commitments, respectively. The elevated provision expense for loan credit losses recorded during the three months ended September 30, 2025, was largely due to the borrower fraud impacting the Tricolor Holdings, LLC loan relationship, which resulted in a $29.5 million increase in total provision expense, including a $28.0 million provision for loan credit losses and a $1.5 million provision for off-balance sheet commitments. The remaining decrease was primarily the result of lower risk embedded in our loan portfolio, reflected in favorable 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.
Previous wording
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 wording
Net charge-offs decreased $28.7 million, to $2.7 million for the three months ended September 30, 2026, from $31.4 million for the three months ended September 30, 2025. Of the decrease, $28.4 million was attributable to net charge-offs recognized in the three months ended September 30, 2025, related to the borrower fraud as discussed above. The allowance for loan credit losses to nonperforming LHFI increased to 135.77% for the three months ended September 30, 2026, compared to 109.04% for the three months ended September 30, 2025. The increase in the ratio is primarily the result of a $15.8 million decrease in nonperforming LHFI, primarily due to decreases of $4.9 million, $4.8 million and $2.4 million in nonperforming single-family residential real estate, commercial and industrial and multi-family residential real estate loans, respectively. $2.3 million of the decline in nonperforming LHFI was a result of net paydowns or payoffs of nonperforming loans, primarily in the construction/land/land development sector, impacted by the questioned banker activity first disclosed during the quarter ended June 30, 2024.
Previous wording
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 wording
Swap fee income. The $985,000 decrease in swap fee income was the result of lower customer swap activity during the current quarter and a change in the interest rate environment, reflecting reduced demand for hedging solutions compared to the three months ended September 30, 2025.
Previous 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.
Current wording
Salaries and employee benefits. The $2.7 million increase in salaries and employee benefits was primarily due to a $1.6 million increase in incentive compensation expense, including a $1.4 million increase in bonuses driven by improved performance. Also contributing to the increase was a net increase in salaries of $1.4 million primarily due to annual merit increases and a net increase of 6 full-time equivalent (“FTE”) employees.
Previous wording
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 wording
Other noninterest expense. The $1.4 million decrease in other noninterest expense was primarily due to a $2.2 million release of litigation reserve which was offset by an $883,000 charge, both of which relate to the settlement of certain litigation involving the questioned banker activity first disclosed during the quarter ended June 30, 2024.
Previous wording
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 wording
Electronic banking. The $526,000 decrease in electronic banking expense was primarily driven by a total decrease of $388,000 in mobile banking and card processing expenses, predominantly as a result of contract renegotiations as part of Optimize Origin.
Previous wording
Comparison of Results of Operations for the Six Months Ended June 30, 2026 and 2025
Current wording
Comparison of Results of Operations for the Nine Months Ended September 30, 2026 and 2025
Previous wording
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 wording
Our net income increased $53.6 million, or 117.4%, to $99.3 million for the nine months ended September 30, 2026, from $45.7 million for the nine months ended September 30, 2025. On a diluted EPS basis, we reported $3.19 per share for the nine months ended September 30, 2026, compared to $1.46 per share for the nine months ended September 30, 2025.
Previous wording
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 wording
Net interest income for the nine months ended September 30, 2026, was $274.6 million, an increase of $30.3 million, or 12.4%, compared to the nine months ended September 30, 2025. The increase in net interest income was predominantly driven by a $26.6 million decrease in interest expense and a $3.7 million increase in interest income.
Previous wording
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 wording
The $26.6 million decrease in interest expense was mainly attributable to decreases of $23.1 million and $3.8 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 $16.1 million, $7.5 million and $2.5 million, respectively. The benefit from lower deposit rates was partially offset by a $7.3 million increase in interest expense on money market deposits due to higher average balances, while lower average time deposit balances reduced interest expense by $3.1 million. The $3.8 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 nine months ended September 30, 2026, from $101.0 million for the nine months ended September 30, 2025.
Previous wording
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 wording
Total interest income increased $3.7 million for the nine months ended September 30, 2026, compared to the nine months ended September 30, 2025, primarily due to increases of $3.4 million and $2.8 million in interest income earned on LHFI and total investment securities, respectively. These increases were partially offset by a decrease of $1.3 million in interest income earned on interest-earning balances due from banks. The increase in interest income on LHFI was primarily attributable to a $15.6 million net increase due to higher average balances, which was offset by a $12.2 million net decrease due to lower yields. Of the $15.6 million increase due to higher average balances, $7.1 million, $5.9 million, $3.1 million and $3.1 million were attributable to commercial and industrial, commercial real estate, mortgage warehouse lines of credit and multifamily residential real estate, respectively. Of the $12.2 million decrease in interest income attributable to lower yields, $10.4 million and $1.9 million were attributable to commercial and industrial loans and mortgage warehouse lines of credit, 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 with the most recent transaction occurring in June 2025, in conjunction with our Optimize Origin initiative, as well as, an increase in yields on principal cashflows that has been reinvested in higher yielding securities. The decrease in interest income on interest-earning balances due from banks was primarily attributed to $2.4 million due to lower yields, offset by $1.1 million increase due to higher average balances.
Previous wording
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 wording
The NIM-FTE was 3.86% for the nine months ended September 30, 2026, a 29-basis point increase from 3.57% for the nine months ended September 30, 2025. The improvement was mainly driven by an expanding interest rate spread, as the 58-basis-point decline in the average rate on total interest-bearing liabilities exceeded the 16-basis-point decline in the yield on interest-earning assets for the nine months ended September 30, 2026, compared to the nine months ended September 30, 2025. The average rate on total interest-bearing liabilities for the nine months ended September 30, 2026, was 2.68%, compared to 3.26% for the nine months ended September 30, 2025. The average yield on total interest-earning assets for the nine months ended September 30, 2026, was 5.69%, compared to 5.85% for the nine months ended September 30, 2025.
Previous wording
The following table presents average consolidated balance sheet information, interest income, interest expense and the corresponding average yields earned, and rates paid for the six months ended June 30, 2026 and 2025.
Current wording
The following table presents average consolidated balance sheet information, interest income, interest expense and the corresponding average yields earned, and rates paid for the nine months ended September 30, 2026 and 2025.
Previous wording
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 wording
Net charge-offs decreased $30.5 million, to $5.9 million for the nine months ended September 30, 2026, from $36.4 million for the nine months ended September 30, 2025, primarily due to net charge-offs related to the borrower fraud recognized during the nine months ended September 30, 2025, as discussed above. Net charge-offs to total average LHFI decreased to 0.10% for the nine months ended September 30, 2026, from 0.64% for the nine months ended September 30, 2025.
Previous wording
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 wording
Loss on sales of securities, net. The increase in loss on sales of securities, net, resulted from a $14.4 million loss recognized during the nine months ended September 30, 2025, as a result of our bond portfolio optimization strategy in conjunction with our Optimize Origin initiative.
Previous wording
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 wording
Insurance commission and fee income. The $2.6 million increase in insurance commission and fee income is the result of new business production, combined with strong renewal retention rates, primarily in property and casualty direct bill market sector.
Previous wording
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 wording
Equity method investment loss. The $2.0 million decrease in equity method investment loss was primarily driven by an increase of $3.0 million in Argent Financial equity investment income recognized during the nine months ended September 30, 2026, partially offset by a $1.1 million increase in limited partnership investment losses recognized during the nine months ended September 30, 2026, compared to the same period in 2025.
Previous wording
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 wording
Swap fee income. The $2.9 million decrease in swap fee income was the result of lower customer swap activity during the nine months ended September 30, 2026, and a change in the interest rate environment, reflecting reduced demand for hedging solutions compared to the nine months ended September 30, 2025.
Previous wording
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 wording
Noninterest expense for the nine months ended September 30, 2026, increased by $4.6 million, or 2.5%, to $190.7 million, compared to $186.1 million for the nine months ended September 30, 2025, primarily due to increases of $5.4 million, $1.8 million and $1.7 million in salaries and employee benefits, professional services and data processing, respectively. These increases were offset by decreases of $2.0 million, $1.3 million and $862,000, in other expense, occupancy and equipment, net, and electronic banking, respectively.
Previous wording
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 wording
Salaries and employee benefits. The $5.4 million increase in salaries and employee benefits expense was primarily driven by an increase of $4.9 million in incentive compensation, including a $3.5 million increase in bonuses driven by improved performance. Also contributing to the increase was a net increase in salaries of $2.7 million primarily due to annual merit increases and a net increase of 6 FTE employees. These increases were partially offset by a reduction of $2.5 million in medical costs primarily due to favorable adjustments to prior estimates.
Previous wording
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 wording
Professional services. The $1.8 million increase in professional services expense was primarily due to a $1.2 million increase in consultant fees for the nine months ended September 30, 2026, compared to nine months ended September 30, 2025, related to contract renegotiations that occurred during the first half of the 2026 fiscal year.
Previous 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.
Current wording
Data processing. The $1.7 million increase in data processing expense was primarily due to an increase of $1.5 million in software-related costs resulting from higher contract fees and the implementation of new loan origination and relationship management software.
Previous wording
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 wording
Other noninterest expense. The $2.0 million decrease in other noninterest expense was primarily due to a decrease of $2.6 million during the nine months ended September 30, 2026, as a result of the release of litigation reserves related to the questioned banker activity first disclosed during the quarter ended June 30, 2024.
Previous wording
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 wording
Occupancy and equipment, net. The $1.3 million decrease in occupancy and equipment, net expense was primarily driven by a decrease of $1.2 million in depreciation expense. Of this decrease, $1.0 million was attributed to leasehold improvements and $429,000 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.
Previous 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.
Current wording
Total assets increased by $380.4 million, or 3.9%, to $10.11 billion at September 30, 2026, from $9.72 billion at December 31, 2025. The increase was primarily driven by an increase of $423.3 million in LHFI. LHFI was $8.09 billion at September 30, 2026, an increase of 5.5% from $7.67 billion at December 31, 2025.
Previous 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.
Current wording
Total liabilities increased by $363.4 million, or 4.3%, to $8.84 billion at September 30, 2026, from $8.48 billion at December 31, 2025. The increase was primarily driven by increases of $365.9 million in total deposits. Total deposits were $8.67 billion at September 30, 2026, an increase of 4.4% from $8.31 billion at December 31, 2025, primarily due to increases of $334.1 million and $196.6 million in money market and noninterest-bearing deposits, respectively. These increases were partially offset by a $104.5 million and a $59.8 million decrease in interest-bearing demand deposits and time deposits, respectively.
Previous wording
Our loan portfolio is our largest category of interest-earning assets, and interest income earned on our loan portfolio is our primary source of income. At June 30, 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.
Current wording
Our loan portfolio is our largest category of interest-earning assets, and interest income earned on our loan portfolio is our primary source of income. At September 30, 2026, 74.9% of the loan portfolio held for investment was comprised of commercial and industrial loans, including mortgage warehouse lines of credit, commercial real estate and construction/land/land development loans, which were primarily originated within our existing market areas, compared to 73.7% at December 31, 2025.
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Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
During the third quarter of 2025, the Company repurchased a total of 265,248 shares of its common stock pursuant to its July 2025 share 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 share repurchases totaled 401,647 shares of common stock at an average price per share of $34.59, for an aggregate purchase price of $13.9 million, including broker commissions and applicable excise taxes.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
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.