Origin Bancorp Q2 net interest income rises on higher loan balances and yields

Overview

• U.S. regional bank's Q2 net income and EPS rose from prior quarter

• Net interest income and margin improved, driven by higher loan balances and yields

• Company repurchased shares and raised quarterly dividend, citing balance sheet strength

Outlook

• Origin Bancorp reiterates near-term ROAA run rate target of 1.15% or higher by 4Q26

• Company will continue to execute on Optimize Origin and invest strategically across its footprint

Result Drivers

• HIGHER LOAN BALANCES AND YIELDS - Net interest income rose due to increased average loan balances and higher loan yields, per company

• LOWER INTEREST EXPENSE ON DEPOSITS - Interest expense on interest-bearing deposits decreased due to lower average balances and rates, per company

• IMPROVED CREDIT QUALITY - Provision for credit losses and net charge-offs declined due to reduced risk in the loan portfolio, per company

Company press release: ID:nGNX9bgX8m

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "buy"

• Wall Street's median 12-month price target for Origin Bancorp Inc is $55.00, about 6.2% above its July 21 closing price of $51.80

• The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 11 three months ago

Reuters Recommended Reads

• July 22 - First Bancorp North Carolina Q2 profit rises on higher loan yields

• July 22 - Five Star Bancorp Q2 net income rises on loan growth

• July 21 - KeyCorp quarterly profit rises on interest income strength

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)