Key Highlights

  • Net income rose 11.6% from the second quarter to USD 37.8 million, or USD 1.22 per diluted share.
  • Pre-tax, pre-provision earnings reached USD 50.7 million, compared with USD 43.2 million in the linked quarter.
  • Net interest margin on a tax-equivalent basis was 3.94% and annualized return on average assets was 1.47%.
  • The board raised the quarterly dividend 12% to USD 0.28 per share, payable November 30, 2026.

Origin Bancorp, Inc. (TXSE:OBK), the holding company for Origin Bank, reported third-quarter 2026 net income of USD 37.8 million, or USD 1.22 per diluted share. The result was above a consensus estimate of USD 1.06 and compares with USD 33.8 million, or USD 1.09, in the second quarter of 2026. Revenue, measured as net interest income of USD 95.1 million plus noninterest income of USD 18.1 million, came to USD 113.2 million, above a consensus estimate of USD 111.59 million.

Pre-tax, pre-provision earnings, a non-GAAP measure, were USD 50.7 million. The company described several metrics, including net income, net interest income, net interest margin and diluted EPS, as records. Chairman, President and CEO Drake Mills tied the results to the Optimize Origin initiative, which the company launched in January 2025 to lift profitability and efficiency.

Margin, Fee Income and Credit Quality

Net interest income rose 3.2% from the second quarter, helped by higher average loan balances, one additional calendar day and higher loan yields. Net interest margin expanded two basis points to 3.94% and is up 29 basis points from a year earlier. The efficiency ratio improved to 55.19% from 59.87%, as noninterest expense declined 3.0% to USD 62.5 million, partly through a litigation-related contingency reserve release of USD 2.2 million. Noninterest income rose 17.5%, led by equity method investment income and insurance commissions.

The provision for credit losses was USD 2.6 million versus USD 65 thousand in the linked quarter, reflecting new loan production and higher net charge-offs, partly offset by reserve releases tied to credit migration. Nonperforming loans fell to USD 72.5 million, or 0.90% of loans held for investment, from USD 78.5 million. Loans past due 30 to 89 days rose to USD 10.3 million from USD 5.2 million. The allowance stood at 1.22% of loans.

Balance Sheet, Capital and Payouts

Loans held for investment were USD 8.09 billion, up 0.3%, or 2.3% excluding mortgage warehouse lines. Deposits were USD 8.67 billion, down 0.3%, while borrowings dropped to USD 15.4 million from USD 136.9 million. Common equity tier 1 stood at 13.74% of risk-weighted assets, and tangible book value per share was USD 36.14.

Origin repurchased 272,927 shares at an average of USD 54.21 during the quarter, leaving USD 106.8 million under its authorization. Management reported a near-term target for return on average assets of 1.15% or higher by the fourth quarter of 2026. The company also noted that the Federal Reserve raised the federal funds target range by 25 basis points to 3.75% to 4.00% on September 16, 2026.

Key Readings Ahead

Four datapoints frame the fourth quarter. The first is the ROAA target of 1.15% or higher by 4Q26, against 1.47% in the third quarter. The second is the net interest margin of 3.94%, set against a cost of total deposits of 2.01%. The third is credit: past-due loans of USD 10.3 million and nonperforming loans of 0.90% of loans. The fourth is capital deployment, with the USD 0.28 dividend payable November 30 to holders of record on November 13 and USD 106.8 million of buyback capacity remaining.