Origin Bancorp (OBK) Q2 2026 earnings summary

Executive summary

• Achieved record net income of $33.8 million in Q2 2026, up 22.2% from Q1, with diluted EPS of $1.09, robust ROA and ROE, and strong performance across NIM, ROAA, ROAE, and book value per share, reflecting disciplined execution of the Optimize Origin strategy.

• Net interest margin (NIM-FTE) rose to 3.92%, a 21 bps increase sequentially, and net interest income grew by $5.0 million quarter-over-quarter to $92.2 million.

• Strategic expansion into new markets, including Birmingham, Alabama, and hiring of 27 experienced bankers year-to-date, fueling growth in Texas and Southeast markets.

• Focused on relationship profitability, disciplined pricing, and core deposit generation, with noninterest-bearing deposits rising 9.6% sequentially and deposit account openings up 82% year-over-year in June.

• Continued investment in technology, AI, and data to enhance productivity and scale, alongside maintaining a strong, engaged culture with top decile employee satisfaction.

Financial highlights

• Total loans held for investment grew 2.7% sequentially to $8.07 billion; total deposits were $8.70 billion.

• Net interest margin expanded to 3.92%, driving a 5.7% sequential increase in net interest income to $92.2 million.

• Noninterest income was $15.4 million, down from $16.4 million in Q1 due to seasonality in insurance; noninterest expense rose to $64.4 million from $62.8 million.

• Tangible book value per share increased to $36.37, marking 15 consecutive quarters of growth; book value per share was $41.52.

• Efficiency ratio improved to 59.87% from 61.32% in Q1 2026.

Outlook and guidance

• Targeting mid to high single-digit loan and deposit growth for the year, tracking toward the higher end.

• Net interest income expected to grow in the high single digits for the full year and Q4 over Q4; NIM guidance for Q4 2026 is 3.90% +/- 5 bps.

• Noninterest income outlook adjusted to low to mid-single digit growth for the year, with Q4-over-Q4 growth in the low single digits.

• Expense growth outlook remains mid-single digits, with run rate ROAA expectation of at least 1.15% in Q4 and pre-tax, pre-provision ROAA above 1.72%.

• Management aims to reach top quartile performance within three years, balancing investment and profitability.