Origin Bancorp reports lower Q2 profit, launches new buyback program

Overview

• Origin Bancorp Q2 net income declines from previous quarter

• Net interest income rises 4.7% due to higher loan interest income

• Co repurchased 136,399 shares, announces new $50 mln buyback program

Outlook

• Origin targets greater than 1% ROAA run rate by 4Q25

• Company expects $34.2 mln annual earnings improvement pre-tax pre-provision

• Origin positioned in dynamic growth markets for future value delivery

Result Drivers

• OPTIMIZE ORIGIN - Co attributes results to ongoing Optimize Origin initiative, focusing on productivity, efficiency, and balance sheet optimization

• BOND PORTFOLIO STRATEGY - Bond portfolio optimization strategy impacted EPS negatively but improved long-term yields

• NET INTEREST INCOME - Increase in net interest income driven by higher loan interest income and decreased interest expenses

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "buy"

• Wall Street's median 12-month price target for Origin Bancorp Inc is $41.00, about 8% above its July 22 closing price of $37.72

• The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 11 three months ago

Press Release: ID:nGNX2FP1fC