Origin Bancorp, Inc. reported net income of $14.3 million, or $0.46 diluted earnings per share, for the fourth quarter ended December 31, 2024. For the full year 2024, net income was $76.5 million, or $2.45 diluted earnings per share, representing a 9.6% decrease from $2.71 in 2023.
Net interest income for the fourth quarter increased by $3.5 million, or 4.7%, to $78.3 million compared to the third quarter of 2024. The fully tax-equivalent net interest margin (NIM-FTE) expanded by 15 basis points to 3.33% from the linked quarter.
The company executed a bond portfolio optimization strategy during the quarter, selling $188.2 million in lower-yielding securities and purchasing $173.7 million in higher-yielding ones. This resulted in a $14.6 million loss and a $0.35 negative impact to diluted EPS in Q4, but is expected to increase annual net interest income by $5.6 million.
Noninterest income for the quarter was a negative $330,000, a decrease of $16.3 million from the linked quarter, primarily due to the $14.8 million loss on sales of securities from the bond portfolio optimization. Noninterest expense increased by $2.9 million, or 4.6%, to $65.4 million, partly due to a $3.1 million contingency expense related to questioned banker activity.
Credit quality saw nonperforming loans held for investment (LHFI) increase by $10.7 million to 0.99% of total LHFI, and classified loans increased by $11.3 million to $118.8 million. A credit loss provision benefit of $5.4 million was recorded, driven by a $5.5 million release of loan credit loss provision.
As part of its "Optimize Origin" initiative, the company announced the closure of six banking centers by the end of February 2025, expected to reduce annual occupancy expense by approximately $3.6 million. Management aims for a 1% or greater ROAA run rate by Q4 2025, with actions taken expected to drive $21 million in annual pre-tax pre-provision earnings improvement.
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