Origin Bancorp Reports $27.7 Million Net Income for Q1 2026, Up 23.6%

Origin Bancorp, Inc. reported a net income of $27.7 million for the first quarter of 2026, reflecting a 23.6% increase from $22.4 million in the same period last year. This growth translated to diluted earnings per share of $0.89, up from $0.71 in the prior year. The increase in profitability was primarily driven by an $8.8 million rise in net interest income, which reached $87.2 million, despite a slight decline in total interest income. The company’s net interest margin improved to 3.71%, a 27 basis point increase compared to the previous year, largely due to a significant reduction in interest expenses on deposits.

Total assets for Origin Bancorp increased by $463.4 million, or 4.8%, to $10.19 billion as of March 31, 2026, compared to $9.72 billion at the end of 2025. This growth was fueled by a $242 million increase in cash and cash equivalents and a $193.3 million rise in loans held for investment, which totaled $7.86 billion. The company’s total deposits also saw a notable increase of $449 million, or 5.4%, reaching $8.76 billion, with significant contributions from money market and interest-bearing demand deposits.

In terms of operational developments, Origin Bancorp continued to focus on its Optimize Origin initiative, aimed at enhancing financial performance and employee engagement. The company repurchased 165,500 shares of its common stock during the quarter at an average price of $41.27 per share, as part of a broader $50 million stock repurchase program initiated in July 2025. Additionally, the board approved a 67% increase in the quarterly dividend, raising it from $0.15 to $0.25 per share, reflecting the company’s strong balance sheet and earnings durability.

The company’s loan portfolio remains a critical component of its operations, with commercial and industrial loans comprising a significant portion. As of March 31, 2026, nonperforming loans increased to $87.3 million, up from $81.2 million at the end of 2025, primarily due to increases in commercial real estate and construction loans. The allowance for loan credit losses stood at $99 million, representing 1.26% of total loans held for investment, indicating a slight increase in credit risk management efforts.

Looking ahead, Origin Bancorp anticipates continued growth in its loan portfolio and overall financial performance, supported by its strategic initiatives and a favorable economic environment. However, the company remains cautious of potential economic uncertainties and their impact on credit quality and market conditions. The management's focus on maintaining a strong capital position and effective risk management practices will be essential in navigating future challenges.