Origin Bancorp, Inc. Q1 FY2026 earnings call

• Drake Mills expressed satisfaction with Q1 results and optimism about the momentum from Optimize Origin, highlighting ROA and loan/deposit growth. • Lance Hall elaborated on Optimize Origin driving stronger execution, disciplined growth, and operating leverage, with loan and deposit growth in key markets, addition of 15 bankers, and the hiring of the Chief Technology and Innovation Officer. • Jim Crotwell reported sound credit metrics, including low past dues, net charge-offs, and a stable allowance for credit losses. • Wally Wallace presented financial highlights such as EPS, pretax pre-provision earnings, balance sheet changes, NIM, noninterest income, noninterest expense, and capital actions like the dividend increase and share repurchases.

In Q1, the ROA was 1.11%. Loans held for investment, excluding mortgage warehouse, increased by $200 million or 2.8% quarter-over-quarter. Total deposits, after adjusting for deposits sold at the end of 2025, grew by $234 million or 2.8%. Net charge-offs for the quarter were $2.8 million, down from $3.2 million, with an annualized charge-off rate of 0.15% for the quarter. Nonperforming assets increased by $6.4 million, moving from 1.07% of loans to 1.12% of loans, remaining below the level of 1.18% reported at Q3 2025. Classified assets also increased moderately, from 1.93% of total loans to 1.97%, an increase of $6.3 million. The allowance for credit losses increased by $2.2 million to $99 million. Diluted earnings per share were $0.89. Pretax pre-provision earnings were $40.8 million, and the annualized pretax pre-provision ROA was 1.61%. Loans grew by 2.5% sequentially and 2.8% when excluding mortgage warehouse. Total deposits grew by 5.4% during the quarter; excluding the sale of $215 million in interest-bearing deposits, deposits would have increased by 2.8% during the quarter. Noninterest-bearing deposits grew by 4.2% sequentially and ended the quarter at 23.6% of total deposits. Tangible book value grew sequentially to $35.61, the 14th consecutive quarter of growth, and the TCE ratio ended the quarter at 11%.

• Targeted loan and deposit growth in the mid- to high single digits for the year, tracking towards the higher end after Q1. • Anticipated NIM to bounce back in Q2 by about 10 basis points, plus or minus, and expected NIM to be in the 3.7% to 3.8% range by Q4 with a current bias towards the higher end. The outlook included 25 basis point Fed rate cuts in July and December, expecting net interest income growth in the mid-single digits for the full year and Q4 over Q4. • Maintained the outlook for full-year noninterest income growth in the mid-single digits with Q4-over-Q4 growth in the low to mid-single digits when excluding notable items, currently tracking on the lower end. • The expense growth outlook was for mid-single-digit growth for the full year and on a Q4-over-Q4 basis after excluding notable items. • Maintained the run rate ROA expectation of at least 1.15% in Q4 and a pretax pre-provision run rate ROA in excess of 1.72%.

Q: Inquiries about loan growth drivers, pipeline, and loan pricing.

A: Lance Hall talked about loan growth drivers in Texas and the Southeast, pipeline levels, and disciplined pricing.

Q: Questions regarding capital priorities and M&A.

A: Drake Mills and Lance Hall discussed capital deployment focusing on growth and the dividend increase, with M&A not being on the table currently.

Q: Queries about NII, fees, and Optimize Origin progress.

A: Wally Wallace and Drake Mills discussed NII tracking towards the higher end, fee income tracking lower but total revenue strong due to NII, and Optimize Origin as the operating system for future growth.

Q: Inquiries about deposit growth guidance, NIM with Fed cuts, and Texas market impact.

A: William Wallace and Martin Hall addressed deposit growth seasonality, the impact of Fed cuts on NIM, and the effects of the Texas market's demand and dislocation.

Q: Questions on CNI growth, deposit repricing, and competition.

A: Martin Hall and William Wallace discussed CNI growth from existing customers, the outlook for deposit repricing, and deposit pricing competition.