Origin Bancorp Inc (OBK) Reports Q3 2023 Earnings
Origin Bancorp Inc (NYSE:OBK) reported a net income of $24.3 million for Q3 2023, an increase of 11.7% compared to Q2 2023.
Diluted earnings per share (EPS) increased by 12.9% to $0.79 compared to $0.70 in the previous quarter.
The company's book value per common share was $32.32, reflecting a slight decrease of $0.01 compared to the linked quarter.
Origin Bancorp Inc (NYSE:OBK) sold $181.9 million of available-for-sale investment securities at a loss of $7.2 million in September 2023.
Origin Bancorp Inc (NYSE:OBK) announced its earnings for the third quarter of 2023 on October 25, 2023. The company reported a net income of $24.3 million, or $0.79 diluted earnings per share, compared to a net income of $21.8 million, or $0.70 diluted earnings per share, for the quarter ended June 30, 2023. This represents an increase of 11.7% compared to the previous quarter.
Financial Performance
Origin Bancorp Inc (NYSE:OBK) reported strong earnings this quarter, with the team remaining focused on executing the strategic plan and delivering for customers and communities. The company's financial highlights for the quarter ended September 30, 2023, include an increase in net income of $2.6 million, or 11.7%, compared to the linked quarter. The adjusted net income was $22.0 million, reflecting an increase of $616,000, or 2.9%, compared to the linked quarter.
Income Statement Highlights
The company's diluted earnings per share (EPS) was $0.79 for the quarter ended September 30, 2023, reflecting an increase of $0.09, or 12.9%, compared to $0.70 for the linked quarter. The adjusted diluted earnings per share was $0.71 for the quarter ended September 30, 2023, reflecting an increase of $0.02, or 2.9%, compared to $0.69 for the linked quarter.
Balance Sheet and Cash Flow Statement Highlights
Origin Bancorp Inc (NYSE:OBK) reported that loans held for investment, excluding mortgage warehouse lines of credit, to deposits were 87.0% at September 30, 2023, compared to 83.5% at June 30, 2023. Cash and liquid securities as a percentage of total assets was 11.6% at September 30, 2023, compared to 11.1% at June 30, 2023.
Company's Analysis
Origin Bancorp Inc (NYSE:OBK) reported that the economic activity remains strong throughout its markets, and the results reflect the continued strength and stability of the company. The company's book value per common share was $32.32 at September 30, 2023, reflecting a decrease of $0.01, compared to the linked quarter. Tangible book value per common share was $26.78 at September 30, 2023, reflecting an increase of $0.07, or 0.3%, compared to the linked quarter.
Other Pertinent Details
In September 2023, Origin Bancorp Inc (NYSE:OBK) sold $181.9 million of available-for-sale investment securities at a loss of $7.2 million and used the proceeds to pay down Federal Home Loan Bank (FHLB) advances. This negatively impacted the basic and diluted EPS by $0.18 for the quarter ended September 30, 2023. However, the company recorded a $10.1 million positive valuation adjustment on one of its non-marketable equity securities, which positively impacted the basic and diluted EPS by $0.26 for the quarter ended September 30, 2023.
Explore the complete 8-K earnings release (here) from Origin Bancorp Inc for further details.
This article first appeared on GuruFocus.
