Origin Bancorp, Inc. announced net income of $22.4 million, or $0.71 diluted earnings per share, for the quarter ended March 31, 2025. This represents a significant increase from $14.3 million, or $0.46 diluted earnings per share, reported in the fourth quarter of 2024.
Pre-tax, pre-provision earnings for the quarter were $32.0 million, up from $12.6 million in the linked quarter. Net interest income increased slightly by $110,000, or 0.1%, to $78.5 million compared to the fourth quarter of 2024.
The fully tax-equivalent net interest margin (NIM-FTE) expanded by 11 basis points sequentially to 3.44%, and by 25 basis points year-over-year. This improvement was partly driven by a $1.4 million increase in interest income from investment securities, benefiting from the bond portfolio optimization strategy executed in Q4 2024.
Noninterest income saw a substantial increase of $15.9 million to $15.6 million from the linked quarter, primarily due to the absence of the $14.6 million loss on sales of securities recorded in Q4 2024. Noninterest expense decreased by $3.4 million, or 5.1%, to $62.1 million, mainly due to the absence of a $3.1 million contingency expense from the prior quarter.
Credit quality metrics showed some increases, with past due loans rising by $30.3 million and nonperforming loans held for investment (LHFI) increasing by $6.4 million to 1.07% of total LHFI. Classified loans also increased by $8.9 million to $127.7 million.
Management expressed satisfaction with the progress of the "Optimize Origin" strategy, which aims to deliver sustainable elite-level financial performance. The Federal Reserve maintained its federal funds target range at 4.25%-4.50% throughout the first quarter of 2025.
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