Earnings call transcript: Origin Bancorp reports Q2 2025 earnings miss. Origin Bancorp Inc. (OBK), a regional bank with a market capitalization of $1.16 billion, reported disappointing Q2 2025 earnings, with EPS falling short of expectations at $0.47 compared to a forecasted $0.78. Revenue also missed projections, coming in at $83.5 million against the expected $97.58 million. Following these results, the stock saw a slight decline of 0.25%, closing at $37.66. According to InvestingPro analysis, the stock currently appears undervalued based on its Fair Value estimate. EPS of $0.47 missed forecasts by 39.74%. Revenue of $83.5 million fell short of expectations by 14.43%. Stock price decreased by 0.25% post-earnings announcement. Net interest margin improved to 3.61%. Strategic initiatives underway, including 'Optimize Origin.' Origin Bancorp’s Q2 2025 performance was marked by a substantial earnings miss, with both EPS and revenue falling short of expectations. Despite this, the company reported a 1.3% increase in loans and an improved net interest margin, reflecting some operational strengths. However, declining deposits and economic uncertainty pose challenges. Revenue: $83.5 million, down from the forecasted $97.58 million. Earnings per share: $0.47, below the $0.78 forecast. Net interest margin: 3.61%, up 17 basis points. Tangible book value: $33.33, continuing its growth trend. Tangible Common Equity ratio: 10.9%, up from 10.6%. Origin Bancorp’s Q2 2025 results were below expectations, with EPS missing by 39.74% and revenue by 14.43%. This significant miss contrasts with previous quarters, where the company had shown more stable performance. Following the earnings announcement, Origin Bancorp’s stock price fell by 0.25% to $37.66. This decline is relatively modest given the earnings miss, suggesting that investors may be weighing other factors, such as strategic initiatives and market conditions. The stock has demonstrated resilience with a 5.42% return over the past year, while maintaining profitable operations with a return on equity of 7%. Looking ahead, Origin Bancorp has revised its 2025 loan and deposit growth guidance to low single digits, with an anticipated net interest margin increase to 3.7% by Q4 2025. The company is also targeting a 1% ROA run rate by the end of the year. Lance Hall, President and CFO, emphasized, 'We are singularly focused on our ROA run rate, and so pricing discipline is critical.' CEO Drake Mills added, 'Our future is bright. Very excited about where we are.' These statements reflect a focus on strategic growth despite current challenges. Economic uncertainty impacting loan growth. Declining deposits could affect liquidity. Potential Fed rate cuts may influence margins. Market consolidation and competition in key regions. Execution risks associated with strategic initiatives. During the earnings call, analysts queried about loan growth challenges and the company’s securities portfolio restructuring. The management also detailed their investment strategy in Argent Financial and addressed capital utilization concerns.

Earnings call transcript: Origin Bancorp reports Q2 2025 earnings miss

Origin Bancorp Inc. (OBK) reported a Q2 2025 earnings miss, with earnings per share (EPS) of $0.47 falling 39.74% below forecasts of $0.78 and revenue of $83.5 million missing expectations by 14.43%. The stock closed at $37.66, down 0.25%, while net interest margin improved to 3.61%. Despite challenges like declining deposits and economic uncertainty, the bank highlighted strategic initiatives and a 1.3% loan growth. Management emphasized focus on return on assets (ROA) and market conditions.