Origin Bancorp Inc.

05/06/2026 | Press release | Distributed by Public on 05/06/2026 12:55

Quarterly Report for Quarter Ending March 31, 2026 (Form 10-Q)

Management's Discussion and Analysis of Financial Condition and Results of Operations
Unless the context indicates otherwise, references in this report to "we," "us," "our," "our company," "the Company" or "Origin" refer to Origin Bancorp, Inc., a Louisiana corporation, and its consolidated subsidiaries. All references to "Origin Bank" or "the Bank" refer to Origin Bank our wholly-owned bank subsidiary.
The following discussion and analysis presents our financial condition and results of operations on a consolidated basis. However, we conduct all of our material business operations through our wholly-owned bank subsidiary, Origin Bank, the discussion and analysis that follows primarily relates to activities conducted at the Bank level.
The following discussion and analysis should be read in conjunction with our unaudited consolidated financial statements and related condensed notes contained in Item 1 of this report. To the extent that this discussion describes prior performance, the descriptions relate only to the periods listed, which may not be indicative of our future financial outcomes. In addition to historical information, this discussion contains forward-looking statements that involve risks, uncertainties and assumptions that could cause results to differ materially from management's expectations. Factors that could cause such differences are discussed in the sections titled "Cautionary Note Regarding Forward-Looking Statements" and "Item 1A. Risk Factors" and in the section titled "Risk Factors" in our 2025 Form 10-K. We assume no obligation to update any of these forward-looking statements.
General
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.
We incur interest expense on deposits and other borrowed funds and noninterest expense, such as salaries and employee benefits and occupancy expenses. We analyze our ability to maximize the income generated from interest-earning assets and minimize expense of our liabilities through our net interest margin. Net interest margin is a ratio calculated as net interest income divided by average interest-earning assets. Net interest income is the difference between interest income on interest-earning assets, such as loans, securities and interest-earning cash, and interest expense on interest-bearing liabilities, such as deposits and borrowings. Net interest spread is the average yield on interest-earning assets minus the average rate on interest-bearing liabilities.
Changes in market interest rates and the interest rates we earn on interest-earning assets or pay on interest-bearing liabilities, as well as in the volume and types of interest-earning assets and interest-bearing liabilities are usually the largest drivers of periodic changes in net interest spread, net interest margin and net interest income.
Our Optimize Origin initiative, announced in January 2025 and designed to drive elite financial performance and enhance our award-winning culture, remains an integral part of our corporate DNA.
•Built on three primary pillars:
◦Productivity, Delivery & Efficiency
◦Balance Sheet Optimization
◦Culture & Employee Engagement
•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.
2026 First Quarter Key Metrics
•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.
•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.
•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.
•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.
•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.
•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.
Comparison of Results of Operations for the Three Months Ended March 31, 2026 and 2025
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.
Net Interest Income and Net Interest Margin
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.
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.
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.
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.
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.
The following table presents average balance sheet information, interest income, interest expense and the corresponding average yields earned, and rates paid for the three months ended March 31, 2026 and 2025.
Three Months Ended March 31,
2026 2025
(Dollars in thousands)
Assets
Average Balance(1)
Income/Expense
Yield/Rate(2)
Average Balance(1)
Income/Expense
Yield/Rate(2)
Commercial real estate $ 2,506,193 $ 35,222 5.70 % $ 2,448,099 $ 35,111 5.82 %
Construction/land/land development 628,332 10,402 6.71 821,754 13,913 6.87
Single-family residential real estate 1,448,774 19,765 5.53 1,438,618 19,305 5.44
Multifamily residential real estate 549,475 8,104 5.98 471,304 6,729 5.79
Commercial and industrial 2,076,837 33,910 6.62 2,004,034 36,422 7.37
Mortgage warehouse lines of credit 406,072 6,389 6.38 289,521 5,047 7.07
Consumer 19,823 345 7.06 22,709 417 7.45
LHFI 7,635,506 114,137 6.06 7,496,039 116,944 6.33
Loans held for sale 1,712 24 5.69 8,590 131 6.18
Loans receivable 7,637,218 114,161 6.06 7,504,629 117,075 6.33
Investment securities-taxable 1,017,777 8,776 3.50 1,021,904 8,076 3.21
Investment securities-non-taxable 183,691 1,486 3.28 140,875 968 2.79
Non-marketable equity securities held in other financial institutions 31,112 399 5.20 71,669 416 2.35
Interest-earning deposits in banks 713,959 6,474 3.68 543,821 6,008 4.48
Total interest-earning assets 9,583,757 131,296 5.56 9,282,898 132,543 5.79
Noninterest-earning assets 542,734 525,317
Total assets $ 10,126,491 $ 9,808,215
Liabilities and Stockholders' Equity
Liabilities
Interest-bearing liabilities
Interest-bearing demand deposits $ 2,068,810 $ 11,901 2.33 % $ 2,081,567 $ 14,654 2.86 %
Money market deposits 3,487,443 24,783 2.88 3,137,768 27,013 3.49
Savings deposits 301,161 852 1.15 319,375 1,277 1.62
Savings and interest-bearing transaction accounts 5,857,414 37,536 2.60 5,538,710 42,944 3.14
Time deposits 811,939 6,166 3.08 972,176 8,835 3.69
Total interest-bearing deposits 6,669,353 43,702 2.66 6,510,886 51,779 3.23
FHLB advances & other borrowings 16,434 111 2.74 14,148 96 2.75
Subordinated indebtedness 16,558 239 5.85 124,133 2,209 7.22
Total interest-bearing liabilities 6,702,345 44,052 2.67 6,649,167 54,084 3.30
Noninterest-bearing liabilities
Noninterest-bearing deposits 1,978,098 1,837,365
Other liabilities 178,160 154,934
Total liabilities 8,858,603 8,641,466
Stockholders' Equity 1,267,888 1,166,749
Total liabilities and stockholders' equity $ 10,126,491 $ 9,808,215
Net interest spread 2.89 % 2.49 %
Net interest income and margin $ 87,244 3.69 $ 78,459 3.43
Net interest income and margin - (tax equivalent)(3)
$ 87,748 3.71 $ 78,837 3.44
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(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.
(2)Yields/Rates are calculated on an actual/actual day count basis.
(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%.
Rate/Volume Analysis
The following table presents 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 this table, changes attributable to both rate and volume that cannot be segregated, including the difference in day count, have been allocated to rate.
Three Months Ended March 31, 2026 vs. Three Months Ended March 31, 2025
(Dollars in thousands)
Interest-earning assets
Increase (Decrease) Due To Change In
Loans: Volume Yield/Rate Total Change
Commercial real estate $ 833 $ (722) $ 111
Construction/land/land development (3,275) (236) (3,511)
Single-family residential real estate 136 324 460
Multifamily residential real estate 1,116 259 1,375
Commercial and industrial 1,323 (3,835) (2,512)
Mortgage warehouse lines of credit 2,032 (690) 1,342
Consumer (53) (19) (72)
Loans held for sale (105) (2) (107)
Loans receivable 2,007 (4,921) (2,914)
Investment securities-taxable (33) 733 700
Investment securities-non-taxable 294 224 518
Non-marketable equity securities held in other financial institutions (235) 218 (17)
Interest-earning deposits in banks 1,880 (1,414) 466
Total interest-earning assets 3,913 (5,160) (1,247)
Interest-bearing liabilities
Interest-bearing demand deposits (90) (2,663) (2,753)
Money market deposits 3,010 (5,240) (2,230)
Savings deposits (73) (352) (425)
Time deposits (1,632) (1,037) (2,669)
FHLB advances & other borrowings 16 (1) 15
Subordinated indebtedness (1,914) (56) (1,970)
Total interest-bearing liabilities (683) (9,349) (10,032)
Net interest income $ 4,596 $ 4,189 $ 8,785
Provision for Credit Losses
The provision for credit losses, which includes the provisions for loan credit losses, off-balance sheet commitments credit losses and security credit losses, is based on management's assessment of the adequacy of our allowance for credit losses ("ACL") for loans, securities, and our reserve for off-balance-sheet lending commitments. Factors impacting the provision include inherent risk characteristics in our loan and security portfolios, the level of nonperforming loans and net charge-offs, both current and historic, local economic and credit conditions, the direction of the change in collateral values, reasonable and supportable forecasts, and the funding probability on unfunded lending commitments. The provision for credit losses is charged against earnings in order to maintain our ACL, which reflects management's best estimate of the life of loan/investment security credit losses inherent in our loan/security portfolios at the balance sheet date, and our reserve for off-balance-sheet lending commitments, which reflects management's best estimate of losses inherent in our legally binding lending-related commitments. The allowance is increased by the provision for loan credit losses and decreased by charge-offs, net of recoveries.
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.
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.
Noninterest Income
The table below presents the various components of and changes in our noninterest income for the periods indicated.
(Dollars in thousands) Three Months Ended March 31,
Noninterest income: 2026 2025 $ Change % Change
Insurance commission and fee income $ 9,597 $ 7,927 $ 1,670 21.1 %
Service charges and fees 4,951 4,716 235 5.0
Other fee income 2,295 2,301 (6) (0.3)
Mortgage banking revenue 563 915 (352) (38.5)
Swap fee income 54 533 (479) (89.9)
Equity method investment (loss) income (1,517) (1,692) 175 10.3
Other income 852 902 (50) (5.5)
Total noninterest income $ 16,795 $ 15,602 $ 1,193 7.6
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.
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.
Noninterest Expense
The following table presents the significant components of noninterest expense for the periods indicated:
(Dollars in thousands) Three Months Ended March 31,
Noninterest expense: 2026 2025 $ Change % Change
Salaries and employee benefits $ 38,397 $ 37,731 $ 666 1.8 %
Occupancy and equipment, net 6,984 8,544 (1,560) (18.3)
Data processing 4,050 2,957 1,093 37.0
Office and operations 2,937 2,972 (35) (1.2)
Professional services 2,649 1,250 1,399 111.9
Intangible asset amortization 1,485 1,761 (276) (15.7)
Electronic banking 1,442 1,354 88 6.5
Advertising and marketing 1,360 1,133 227 20.0
Regulatory assessments 1,335 1,392 (57) (4.1)
Loan-related expenses 895 599 296 49.4
Other expense 2,263 2,375 (112) (4.7)
Total noninterest expense $ 63,797 $ 62,068 $ 1,729 2.8
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.
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.
Data processing. The $1.1 million increase in data processing was primarily due to an increase of $791,000 in software related expense.
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.
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.
Comparison of Financial Condition at March 31, 2026, and December 31, 2025
General
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.
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.
Loan Portfolio
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.
The following table presents the ending balance of our loan portfolio held for investment at the dates indicated.
(Dollars in thousands) March 31, 2026 December 31, 2025
2026 vs. 2025
Real estate: Amount Percent Amount Percent $ Change % Change
Commercial real estate ("CRE")(1)
$ 2,510,578 31.9 % $ 2,523,905 32.9 % $ (13,327) (0.5) %
Construction/land/land development
641,273 8.2 611,220 8.0 30,053 4.9
Single-family residential real estate 1,442,792 18.3 1,444,611 18.8 (1,819) (0.1)
Multifamily residential real estate 555,527 7.1 553,149 7.2 2,378 0.4
Total real estate 5,150,170 65.5 5,132,885 66.9 17,285 0.3
Commercial and industrial 2,173,126 27.7 1,989,218 25.9 183,908 9.2
Mortgage warehouse lines of credit 522,290 6.6 528,781 6.9 (6,491) (1.2)
Consumer 18,635 0.2 20,033 0.3 (1,398) (7.0)
Total LHFI $ 7,864,221 100.0 % $ 7,670,917 100.0 % $ 193,304 2.5
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(1)Includes owner-occupied commercial real estate of $999.4 million and $1.00 billion at March 31, 2026, and December 31, 2025, respectively.
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.
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.
The table below sets forth the commercial real estate loan portfolio, by portfolio industry sector and collateral location as of March 31, 2026.
March 31, 2026
(Dollars in thousands) Texas Louisiana Mississippi All Other States Total
Non-owner-occupied CRE:
Office building $ 300,143 $ 24,800 $ 30,180 $ 24,904 $ 380,027
Retail shopping 276,543 28,237 30,332 89,921 425,033
Real estate & construction 185,948 49,410 5,515 17,746 258,619
Healthcare 92,616 41,441 5,544 17,466 157,067
Hotels 9,293 46,776 37,195 8,768 102,032
All other sectors 118,300 9,711 1,886 58,463 188,360
Total non-owner-occupied CRE 982,843 200,375 110,652 217,268 1,511,138
Owner-occupied CRE:
Real estate & construction 167,120 44,719 9,123 21,749 242,711
Retail shopping 142,606 18,217 2,801 1,728 165,352
Restaurants 45,783 16,115 2,142 6,400 70,440
Healthcare 53,822 20,871 880 - 75,573
Consumer services 46,071 14,684 132 3,377 64,264
Entertainment & recreation 38,176 16,456 9,477 - 64,109
All other sectors 174,400 76,128 20,969 45,494 316,991
Total owner-occupied CRE 667,978 207,190 45,524 78,748 999,440
Total commercial real estate loans $ 1,650,821 $ 407,565 $ 156,176 $ 296,016 $ 2,510,578
Loan Portfolio Maturity Analysis
The table below presents the maturity distribution of our LHFI at March 31, 2026. The table also presents the portion of our loans that have fixed interest rates, rather than interest rates that fluctuate over the life of the loans, based on changes in the interest rate environment.
March 31, 2026
(Dollars in thousands) One Year or Less After One Year
Through Five Years 		After Five Years Through Fifteen Years After Fifteen Years Total
Real estate:
Commercial real estate $ 567,240 $ 1,677,034 $ 266,304 $ - $ 2,510,578
Construction/land/land development 214,379 350,134 74,247 2,513 641,273
Single-family residential real estate 135,464 403,728 47,558 856,042 1,442,792
Multifamily residential real estate 171,181 370,012 14,334 - 555,527
Total real estate 1,088,264 2,800,908 402,443 858,555 5,150,170
Commercial and industrial 906,130 1,165,055 101,941 - 2,173,126
Mortgage warehouse lines of credit 513,403 8,887 - - 522,290
Consumer 7,919 10,282 374 60 18,635
Total LHFI $ 2,515,716 $ 3,985,132 $ 504,758 $ 858,615 $ 7,864,221
Amounts with fixed rates $ 702,786 $ 1,784,088 $ 303,156 $ 203,412 $ 2,993,442
Amounts with variable rates 1,812,930 2,201,044 201,602 655,203 4,870,779
Total $ 2,515,716 $ 3,985,132 $ 504,758 $ 858,615 $ 7,864,221
Nonperforming Assets
Nonperforming assets consist of nonperforming/nonaccrual loans and property acquired through foreclosures or repossession, as well as bank-owned property not in use and listed for sale.
Loans are placed on nonaccrual status when management believes that the borrower's financial condition, after giving consideration to economic and business conditions, and collection efforts, is such that collection of interest is doubtful, or generally when loans are 90 days or more past due. Loans may be placed on nonaccrual status even if the contractual payments are not past due if information becomes available that causes substantial doubt about the borrower's ability to meet the contractual obligations of the loan. When accrual of interest is discontinued, all unpaid accrued interest is reversed. Past due status is based on the contractual terms of the loan. Interest income on nonaccrual loans may be recognized to the extent cash payments are received, but payments received are usually applied to principal. Nonaccrual loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. If a loan is determined by management to be uncollectible, regardless of size, the portion of the loan determined to be uncollectible is then charged to the ALCL.
We manage the quality of our lending portfolio in part through a disciplined underwriting policy and through continual monitoring of loan performance and borrowers' financial condition. There can be no assurance, however, that our loan portfolio will not become subject to losses due to declines in economic conditions or deterioration in the financial condition of our borrowers.
The following table shows our nonperforming loans and nonperforming assets at the dates indicated:
(Dollars in thousands)
Nonperforming LHFI:
March 31, 2026 December 31, 2025
Commercial real estate $ 19,891 $ 13,212
Construction/land/land development 19,427 16,388
Single-family residential real estate 37,809 39,480
Commercial and industrial 10,074 11,919
Consumer 65 185
Total nonperforming LHFI
87,266 81,184
Other real estate owned:
Commercial and industrial, Commercial real estate 362 -
Residential real estate 601 650
Total other real estate owned
963 650
Other repossessed assets owned
44 44
Total repossessed assets owned
1,007 694
Total nonperforming assets
$ 88,273 $ 81,878
Total LHFI
$ 7,864,221 $ 7,670,917
Ratio of nonperforming LHFI to total LHFI
1.11 % 1.06 %
Ratio of nonperforming assets to total assets
0.87 0.84
As explained in detail in Part I, Note 10 - Commitments and Contingencies under Loss Contingencies, and as discussed in previous filings, our classified and nonperforming LHFI were negatively impacted beginning in the second quarter of 2024 as a result of certain questioned activity involving a former banker in our East Texas market. We continue to work toward a resolution in this matter.
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.
Potential Problem Loans
From a credit risk standpoint, we classify loans using risk grades which fall into one of five categories: pass, special mention, substandard, doubtful or loss. The classifications of loans reflect a judgment about the risks of default and loss associated with the loan. We review the ratings on loans and adjust them to reflect the degree of risk and loss that is felt to be inherent or expected in each loan. The methodology is structured, so that reserve allocations are increased in accordance with deterioration in credit quality (and a corresponding increase in risk and loss) or decreased in accordance with improvement in credit quality (and a corresponding decrease in risk and loss). Loans rated special mention reflect borrowers who exhibit credit weaknesses or downward trends deserving close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the asset or in the Bank's credit position at some future date. While potentially weak, no loss of principal or interest is envisioned, and these borrowers currently do not pose sufficient risk to warrant adverse classification. Loans rated substandard are those borrowers with deteriorating trends and well-defined weaknesses that jeopardize the orderly liquidation of debt. A substandard loan is inadequately protected by the current sound worth and paying capacity of the obligor or by the collateral pledged, if any, and where normal repayment from the borrower might be in jeopardy.
Loans rated as doubtful have the weaknesses of substandard assets with the additional characteristic that the weaknesses make collection or liquidation in full questionable, and there is a high probability of loss based on currently existing facts, conditions and values. Loans classified as loss are charged-off, and we have no expectation of the recovery of any payments with respect to loans rated as loss. Information regarding the internal risk ratings of our loans at March 31, 2026, is included in Note 4 - Loans to our consolidated financial statements contained in Part I, Item 1 of this report.
Allowance for Loan Credit Losses
The ALCL represents the estimated losses for loans accounted for on an amortized cost basis. Expected losses are calculated using relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. We evaluate LHFI on a pool basis with pools of loans characterized by loan type, collateral, industry, internal credit risk rating and FICO score. We apply a probability of default, loss given default loss methodology, to the loan pools at March 31, 2026. Historical loss rates for each pool are calculated based on charge-off and recovery data beginning with the second quarter of 2012. These loss rates are adjusted for the effects of certain economic variables forecast over a one-year period, particularly for differences between current period conditions and the conditions existing during the historical loss period. Subsequent to the forecast effects, historical loss rates are used to estimate losses over the estimated remaining lives of the loans. The estimated remaining lives consist of the contractual lives, adjusted for estimated prepayments. Loans that exhibit characteristics different from their pool characteristics are evaluated on an individual basis. Certain of these loans are considered to be collateral dependent, with the borrower experiencing financial difficulty. For these loans, the fair value of collateral practical expedient is elected whereby the allowance is calculated as the amount by which the amortized cost exceeds the fair value of collateral, less costs to sell (if applicable). Those individual loans that are not collateral dependent are evaluated based on a discounted cash flow methodology.
The amount of the ALCL is affected by loan charge-offs, which decrease the allowance, recoveries on loans previously charged off, which increase the allowance, as well as the provision for loan credit losses charged to income, which increases the allowance. In determining the provision for loan credit losses, management monitors fluctuations in the allowance resulting from actual charge-offs and recoveries and periodically reviews the size and composition of the loan portfolio in light of current and forecasted economic conditions. If actual losses exceed the amount of the ALCL, it would materially and adversely affect our earnings.
As a general rule, when it becomes evident that the full principal and accrued interest of a loan may not be collected, or at 90 days past due, we will reflect that loan as nonperforming. It will remain nonperforming until it performs in a manner that it is reasonable to expect that we will collect principal and accrued interest in full. When the amount or likelihood of a loss on a loan has been confirmed, a charge-off will be taken in the period it is determined.
We establish general allocations for each major loan category and credit quality. The general allocation is based, in part, on historical charge-off experience and loss given default methodology, derived from our internal risk rating process. Other adjustments may be made to the allowance for pools of loans after an assessment of internal or external influences on credit quality that are not fully reflected in the historical loss or risk rating data. We give consideration to trends, changes in loan mix, delinquencies, prior losses, reasonable and supportable forecasts and other related information.
In connection with the review of our loan portfolio, we consider risk elements attributable to particular loan types or categories in assessing the quality of individual loans. Some of the risk elements we consider include:
•for commercial real estate loans, the debt service coverage ratio, operating results of the owner in the case of owner-occupied properties, the loan to value ratio, the age and condition of the collateral and the volatility of income, property value and future operating results typical of properties of that type;
•for construction, land and land development loans, the perceived feasibility of the project, including the ability to sell developed lots or improvements constructed for resale or the ability to lease property constructed for lease, the quality and nature of contracts for presale or prelease, if any, experience and ability of the developer and loan to value ratio;
•for residential mortgage loans, the borrower's ability to repay the loan, including a consideration of the debt to income ratio and employment and income stability, the loan-to-value ratio, and the age, condition and marketability of the collateral;
•for commercial and industrial loans, the debt service coverage ratio (income from the business in excess of operating expenses compared to loan repayment requirements), the operating results of the commercial, industrial or professional enterprise, the borrower's business, professional and financial ability and expertise, the specific risks and volatility of income and operating results typical for businesses in that category and the value, nature and marketability of collateral; and
•for mortgage warehouse loans, the borrower's adherence to agency or investor underwriting guidelines, while the risk associated with the underlying consumer mortgage loan repayments, similar to other consumer loans, depends on the borrower's financial stability and are more likely than commercial loans to be adversely affected by divorce, job loss, illness and other personal hardships.
Acquisition Accounting and Acquired Loans. We account for our mergers/acquisitions under Financial Accounting Standards Board ("FASB") ASC Topic 805, Business Combinations, which requires the use of the acquisition method of accounting. All identifiable assets acquired, including loans, are recorded at fair value. In accordance with ASC 326, we record a discount or premium, and also an allowance for credit losses on acquired loans. All purchased loans are recorded at fair value in accordance with the fair value methodology prescribed in FASB ASC Topic 820, Fair Value Measurements. The fair value estimates associated with the loans include estimates related to expected prepayments and the amount and timing of undiscounted expected principal, interest and other cash flows.
Purchased loans that have experienced more than insignificant credit deterioration since origination are PCD loans. An ALCL is determined using the same methodology as other individually evaluated loans. The sum of the loan's purchase price and allowance for credit losses becomes its initial amortized cost basis. The difference between the initial amortized cost basis and the par value of the loan is a non-credit discount or premium, which is amortized or accreted into interest income over the life of the loan. Subsequent changes to the ALCL are recorded through the provision for credit losses.
The following table presents the allowance for credit loss by loan category at the following dates:
March 31, December 31, March 31,
(Dollars in thousands)
2026 2025 2025
Loans secured by real estate:
Amount
%(1)
Amount
%(1)
Amount
%(1)
Commercial real estate $ 19,388 31.9 % $ 18,929 32.9 % $ 16,185 31.4 %
Construction/land/land development 6,996 8.2 7,219 8.0 6,836 10.5
Single-family residential real estate 9,793 18.3 9,525 18.8 8,949 19.3
Multifamily residential real estate 6,811 7.1 4,963 7.2 4,078 6.5
Commercial and industrial 54,427 27.7 54,496 25.9 54,762 26.7
Mortgage warehouse lines of credit 998 6.6 913 6.9 422 5.3
Consumer 602 0.2 737 0.3 779 0.3
Total $ 99,015 100.0 % $ 96,782 100.0 % $ 92,011 100.0 %
__________________________
(1)Represents the ratio of each loan type to total LHFI.
The following table presents an analysis of the ALCL and other related data at the periods indicated.
(Dollars in thousands) Three Months Ended March 31, Year Ended December 31,
ALCL 2026 2025 2025
Balance at beginning of period $ 96,782 $ 91,060 $ 91,060
Provision for loan credit losses 5,010 3,679 45,303
Charge-offs:
Commercial real estate 775 257 728
Single-family residential real estate 32 - 489
Multifamily residential real estate - - -
Commercial and industrial 3,004 4,561 43,691
Consumer 152 30 174
Total charge-offs 3,963 4,848 45,082
Recoveries:
Commercial real estate - 13 18
Single-family residential real estate 2 3 17
Multifamily residential real estate - 43 43
Commercial and industrial 1,182 2,042 5,392
Consumer 2 19 31
Total recoveries 1,186 2,120 5,501
Net charge-offs 2,777 2,728 39,581
Balance at end of period $ 99,015 $ 92,011 $ 96,782
Ratio of ALCL to:
Nonperforming LHFI 113.46 % 113.08 % 119.21 %
LHFI 1.26 1.21 1.26
Net charge-offs (annualized) as a percentage of:
Provision for loan credit loss 55.43 74.15 87.37
ALCL 11.37 12.02 40.90
Average LHFI 0.15 0.15 0.52
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.
Securities
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.
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.
All of our mortgage-backed securities and collateralized mortgage obligations are issued and/or guaranteed by U.S. government agencies or U.S. government-sponsored entities. We do not hold any Fannie Mae or Freddie Mac preferred stock, collateralized debt obligations, collateralized loan obligations, structured investment vehicles, private label collateralized mortgage obligations, subprime, Alt-A, or second lien elements in our investment portfolio. As of March 31, 2026, our investment portfolio did not contain any securities that are directly backed by subprime or Alt-A mortgages.
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.
Deposits
Deposits are the primary funding source used to fund our loans, investments and operating needs. We offer a variety of products designed to attract and retain both consumer and commercial deposit customers. These products consist of noninterest and interest-bearing checking accounts, savings deposits, money market accounts and time deposits. Deposits are primarily gathered from individuals, partnerships and corporations in our market areas. We also obtain deposits from local municipalities and state agencies.
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.
The following table presents our deposit mix at the dates indicated:
March 31, 2026 December 31, 2025
(Dollars in thousands) Balance % of Total Balance % of Total $ Change % Change
Noninterest-bearing demand
$ 2,062,982 23.6 % $ 1,979,875 23.8 % $ 83,107 4.2 %
Money market
3,518,907 40.1 3,281,708 39.5 237,199 7.2
Interest-bearing demand
2,071,808 23.7 1,917,658 23.1 154,150 8.0
Time deposits
797,354 9.1 829,452 10.0 (32,098) (3.9)
Savings
305,217 3.5 298,554 3.6 6,663 2.2
Total deposits
$ 8,756,268 100.0 % $ 8,307,247 100.0 % $ 449,021 5.4
We manage our interest expense on deposits through specific deposit product pricing that is based on competitive pricing, economic conditions and current and anticipated funding needs. We may use interest rates as a mechanism to attract or deter additional deposits based on our anticipated funding needs and liquidity position. We also consider potential interest rate risk caused by extended maturities of time deposits when setting the interest rates in periods of future economic uncertainty.
The following table reflects the classification of our average deposits, and the average rate paid on each deposit category for the periods indicated:
Three Months Ended March 31,
2026 2025
(Dollars in thousands) Average Balance Interest Expense Average Rate Paid Average Balance Interest Expense Average Rate Paid
Interest-bearing demand
$ 2,068,810 $ 11,901 2.33 % $ 2,081,566 $ 14,654 2.86 %
Money market
3,487,443 24,783 2.88 3,137,769 27,013 3.49
Time deposits
811,939 6,166 3.08 912,067 8,091 3.60
Brokered deposits(1)
- - - 60,109 744 5.02
Savings
301,161 852 1.15 319,375 1,277 1.62
Total interest-bearing
6,669,353 43,702 2.66 6,510,886 51,779 3.23
Noninterest-bearing demand
1,978,098 - 1,837,365 -
Total average deposits
$ 8,647,451 $ 43,702 2.05 $ 8,348,251 $ 51,779 2.52
______________________
(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.
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.
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.
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.
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.
Liquidity and Capital Resources
Overview
Management oversees our liquidity position to ensure adequate cash and liquid assets are available to support our operations and satisfy current and future financial obligations, including demand for loan funding and deposit withdrawals. Management continually monitors, forecasts and tests our liquidity and non-core dependency ratios to ensure compliance with targets established by our Asset-Liability Management Committee and approved by our board of directors.
Management measures our liquidity position by giving consideration to both on-balance sheet and off-balance sheet sources of, and demands for, funds on a daily and weekly basis.
The Company, which is a separate legal entity apart from the Bank, must provide for its own liquidity, including payment of any dividends that may be declared for its common stockholders and interest and principal on any outstanding debt or trust preferred securities incurred by the Company. The cash held at the holding company is available for general corporate purposes described above, as well as providing capital support to the Bank.
The table below shows the liquidity measures for the Company at the dates indicated:
(Dollars in thousands)
March 31, 2026 December 31, 2025
Available cash balances at the holding company (unconsolidated)
$ 24,373 $ 32,731
Cash and liquid securities as a percentage of total assets
10.7 % 8.4 %
There are regulatory restrictions on the ability of the Bank to pay dividends under federal and state laws, regulations and policies; please see Note 9 - Capital and Regulatory Matters in the condensed notes to our consolidated financial statements for more information on the availability of Bank dividends.
Liquidity Sources
In addition to cash generated from operations, we utilize a number of funding sources to manage our liquidity, including core deposits, investment securities, cash and cash equivalents, loan repayments, federal funds lines of credit available from other financial institutions, as well as advances from the FHLB. We also have access to the Federal Reserve discount window as a source of short-term funding.
Core deposits, which are total deposits excluding time deposits greater than $250,000, brokered, and Certificate of Deposit Account Registry Service deposits, are a major source of funds used to meet our cash flow needs. Maintaining the ability to acquire these funds as needed in a variety of markets is the key to assuring our liquidity.
Our investment portfolio is another source for meeting our liquidity needs. Monthly payments on mortgage-backed securities are used for short-term liquidity, and our investments are generally traded in active markets that offer a readily available source of cash liquidity through sales, if needed. Securities in our investment portfolio are also used to secure certain deposit types, such as deposits from state and local municipalities, and can be pledged as collateral for other borrowing sources.
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.
We also had unsecured federal funds lines of credit available to us, with no amounts outstanding at either March 31, 2026, or December 31, 2025. These lines of credit primarily provide short-term liquidity and, in order to ensure the availability of these funds, we test these lines of credit at least annually. Interest is charged at the prevailing market rate on federal funds purchased and FHLB advances.
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.
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.
In the normal course of business as a financial services provider, we enter into financial instruments, such as certain contractual obligations and commitments to extend credit and letters of credit, to meet the financing needs of our customers. These commitments involve elements of credit risk, interest rate risk and liquidity risk. Some instruments may not be reflected in our consolidated financial statements until they are funded, and a significant portion of commitments to extend credit may expire without being drawn, although they expose us to varying degrees of credit risk and interest rate risk in much the same way as funded loans. Please see Note 10 - Commitments and Contingencies in the condensed notes to our consolidated financial statements for more information on our off-balance sheet commitments.
Stockholders' Equity
Stockholders' equity provides a source of permanent funding, allows for future growth and provides a degree of protection to withstand unforeseen adverse developments. Changes in stockholders' equity is reflected below:
(Dollars in thousands) Total Stockholders' Equity
Balance at January 1, 2026
$ 1,246,685
Net income 27,693
Other comprehensive loss, net of tax (6,703)
Dividends declared - common stock ($0.15 per share)
(4,669)
Stock-based compensation, net 4,101
Repurchase of common stock (6,832)
Balance at March 31, 2026
$ 1,260,275
Please see Part II, Item 2. "Unregistered Sales of Equity Securities, Use of Proceeds and Issuer Purchases of Equity Securities" below for information on the Company's stock repurchase program.
Regulatory Capital Requirements
Together with the Bank, we are subject to various regulatory capital requirements administered by federal banking agencies. Failure to meet minimum capital requirements may result in certain actions by regulators that, if enforced, could have a direct material effect on our financial statements. At March 31, 2026, and December 31, 2025, we and the Bank were in compliance with all applicable regulatory capital requirements, and the Bank was classified as "well capitalized" for purposes of the prompt corrective action regulations of the Federal Reserve. As we deploy capital and continue to grow operations, regulatory capital levels may decrease depending on the level of earnings. However, we expect to monitor and control growth in order to remain "well capitalized" under applicable regulatory guidelines and in compliance with all applicable regulatory capital standards. While we are currently classified as "well capitalized," an extended economic recession could adversely impact our reported and regulatory capital ratios.
The following table presents our regulatory capital ratios, as well as those of the Bank, at the dates indicated:
(Dollars in thousands)
March 31, 2026 December 31, 2025
Origin Bancorp, Inc.
Amount
Ratio
Amount
Ratio
Common equity Tier 1 capital (to risk-weighted assets)
$ 1,161,490 13.60 % $ 1,139,627 13.54 %
Tier 1 capital (to risk-weighted assets)
1,177,516 13.79 1,155,628 13.73
Total capital (to risk-weighted assets)
1,279,772 14.99 1,255,717 14.91
Tier 1 capital (to average total consolidated assets)
1,177,516 11.74 1,155,628 11.86
Origin Bank
Common equity Tier 1 capital (to risk-weighted assets)
$ 1,083,901 12.78 % $ 1,054,279 12.62 %
Tier 1 capital (to risk-weighted assets)
1,083,901 12.78 1,054,279 12.62
Total capital (to risk-weighted assets)
1,186,157 13.98 1,154,368 13.82
Tier 1 capital (to average total consolidated assets)
1,083,901 10.89 1,054,279 10.91
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.
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.
Critical Accounting Policies and Estimates
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.
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.
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