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What changed in Origin Bancorp, Inc.'s 10-K — 2024 vs 2025

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Paragraph-level year-over-year comparison of Origin Bancorp, Inc.'s 2024 and 2025 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2025 report.

+393 added−416 removedSource: 10-K (2026-02-25) vs 10-K (2025-02-27)

Top changes in Origin Bancorp, Inc.'s 2025 10-K

393 paragraphs added · 416 removed · 290 edited across 9 sections

Item 1. Business

Business — how the company describes what it does

75 edited+24 added−47 removed179 unchanged
Biggest changeIf Origin Bank ceases to be “well capitalized” or “well managed” under applicable regulatory standards, or if Origin Bank receives a rating of less than satisfactory under the Community Reinvestment Act (“CRA”), the Federal Reserve may, among other things, place limitations on our ability to conduct these broader financial activities or, if the deficiencies persist, require us to divest the banking subsidiary or the businesses engaged in activities permissible only for financial holding companies. 16 Table of Contents In addition, the Federal Reserve has the power to order a bank holding company or its subsidiaries to terminate any nonbanking activity or terminate its ownership or control of any nonbank subsidiary, when it has reasonable cause to believe that continuation of such activity or such ownership or control constitutes a serious risk to the financial safety, soundness, or stability of any bank subsidiary of that bank holding company.
Biggest changeIf Origin Bank ceases to be “well capitalized” or “well managed” under applicable regulatory standards, or if Origin Bank receives a rating of less than satisfactory under the Community Reinvestment Act (“CRA”), the Federal Reserve may, among other things, place limitations on our ability to conduct these broader financial activities or, if the deficiencies persist, require us to divest the banking subsidiary or the businesses engaged in activities permissible only for financial holding companies.
Our success has been based on (1) a talented team of relationship bankers, executives and directors; (2) a diverse footprint with stable and growth-oriented markets; (3) differentiated and customized delivery and service; (4) our core deposit franchise and (5) an ability to significantly leverage our infrastructure and technology. 6 Table of Contents Successful execution of our strategic plan has produced significant growth in our franchise.
Our success has been based on (1) a talented team of relationship bankers, executives and directors; (2) a diverse footprint with stable and growth-oriented markets; (3) differentiated and customized delivery and service; (4) our core deposit franchise and (5) an ability to significantly leverage our infrastructure and technology. 5 Table of Contents Successful execution of our strategic plan has produced significant growth in our franchise.
These laws and regulations include, among numerous other things, provisions that: • limit the interest and other charges collected or contracted for by Origin Bank, including rules respecting the terms of credit cards and of debit card overdrafts; • govern Origin Bank’s disclosures of credit terms to consumer borrowers; • require Origin Bank to provide information to enable the public and public officials to determine whether it is fulfilling its obligation to help meet the housing needs of the communities it serves; • prohibit Origin Bank from discriminating on the basis of race, creed or other prohibited factors when it makes decisions to extend credit; • govern the manner in which Origin Bank may collect consumer debts; and • prohibit unfair, deceptive or abusive acts or practices in the provision of consumer financial products and services.
These laws and regulations include, among numerous other things, provisions that: • limit the interest and other charges collected or contracted for by Origin Bank, including rules respecting the terms of credit cards and of debit card overdrafts; • govern Origin Bank’s disclosures of credit terms to consumer borrowers; 24 Table of Contents • require Origin Bank to provide information to enable the public and public officials to determine whether it is fulfilling its obligation to help meet the housing needs of the communities it serves; • prohibit Origin Bank from discriminating on the basis of race, creed or other prohibited factors when it makes decisions to extend credit; • govern the manner in which Origin Bank may collect consumer debts; and • prohibit unfair, deceptive or abusive acts or practices in the provision of consumer financial products and services.
Origin Bank is subject to certain legal lending limits under the Louisiana Banking Law and Federal Reserve Regulation O. At December 31, 2024, we had established a general in-house lending limit ranging between $30.0 million and $35.0 million to any one borrower, excluding mortgage warehouse lines of credit, based upon our internal risk rating of the relationship.
Origin Bank is subject to certain legal lending limits under the Louisiana Banking Law and Federal Reserve Regulation O. At December 31, 2025, we had established a general in-house lending limit ranging between $30.0 million and $35.0 million to any one borrower, excluding mortgage warehouse lines of credit, based upon our internal risk rating of the relationship.
We provide our employees and their families access to a platform called “Right Now Media at Work” which has thousands of streaming videos dedicated to both personal and professional development. This tool is designed to enhance work, life and leadership skills and is used for team building and individual development plans.
We provide our employees and their families access to a platform called “Right Now Media at Work,” which has thousands of streaming videos dedicated to both personal and professional development. This tool is designed to enhance work, life and leadership skills and is used for team building and individual development plans.
Throughout and as of December 31, 2024, the Company’s and Origin Bank’s regulatory capital ratios were above the applicable well-capitalized standards and met the capital conservation buffer. Based on current estimates, we believe that the Company and Origin Bank will continue to exceed all applicable well-capitalized regulatory capital requirements and the capital conservation buffer in 2025.
Throughout and as of December 31, 2025, the Company’s and Origin Bank’s regulatory capital ratios were above the applicable well-capitalized standards and met the capital conservation buffer. Based on current estimates, we believe that the Company and Origin Bank will continue to exceed all applicable well-capitalized regulatory capital requirements and the capital conservation buffer in 2026.
Proposed rules were issued in 2011, 2016 and 2024, but as of December 31, 2024, these rules have not been implemented.
Proposed rules were issued in 2011, 2016 and 2024, but as of December 31, 2025, these rules have not been implemented.
We are committed to building unique client experiences through a strong culture, experienced leadership team and a focus on delivering unmatched customer service throughout Texas, Louisiana, Mississippi and now in South Alabama and the Florida Panhandle.
We are committed to building unique client experiences through a strong culture, experienced leadership team and a focus on delivering unmatched customer service throughout Texas, Louisiana, Mississippi, South Alabama and the Florida Panhandle.
Tier 2 capital consists of instruments disqualified from Tier 1 capital, including qualifying subordinated debt and a limited amount of credit loss reserves up to a maximum of 1.25% of risk-weighted assets, subject to certain eligibility criteria.
Tier 2 capital consists of instruments disqualified from Tier 1 capital, including qualifying subordinated indebtedness and a limited amount of credit loss reserves up to a maximum of 1.25% of risk-weighted assets, subject to certain eligibility criteria.
A general discussion of the range of financial services we offer follows. 8 Table of Contents Lending Activities We originate loans secured by single and multi-family real estate, residential construction and commercial buildings. In addition, we make loans to small and mid-sized businesses, as well as to consumers for a variety of purposes.
A general discussion of the range of financial services we offer follows. 8 Table of Contents Lending Activities We originate loans secured by single and multifamily real estate, residential construction and commercial buildings. In addition, we make loans to small and mid-sized businesses, as well as to consumers for a variety of purposes.
We recently announced Optimize Origin , which is an initiative to drive elite financial performance and enhance our award-winning culture built on three primary pillars: • Productivity, Delivery & Efficiency • Balance Sheet Optimization • Culture & Employee Engagement This initiative established a near term target of greater than a 1% ROAA run rate by the fourth quarter of 2025 and an ultimate target of top quartile ROAA, achieved in part by branch consolidations, headcount reductions, securities optimization, capital optimization, and cash/liquidity management.
In January 2025, we announced Optimize Origin , which is an initiative to drive elite financial performance and enhance our award-winning culture built on three primary pillars: • Productivity, Delivery & Efficiency • Balance Sheet Optimization • Culture & Employee Engagement This initiative established an initial near term target of greater than a 1% ROAA run rate by the fourth quarter of 2025 and an ultimate target of top quartile ROAA, surpassed in part by branch consolidations, headcount reductions, securities optimization, capital optimization, and cash/liquidity management.
The Guidance also applies when a bank has a sharp increase in CRE loans or has significant concentrations of CRE secured by a particular property type. We have always had exposures to loans secured by CRE due to the nature of our markets and the loan needs of both consumer and commercial clients.
The Guidance also applies when a bank has a sharp increase in commercial real estate loans or has significant concentrations of commercial real estate secured by a particular property type. We have always had exposures to loans secured by commercial real estate due to the nature of our markets and the loan needs of both consumer and commercial clients.
On June 30, 2021, FinCEN published the first set of “national Anti-Money Laundering (“AML”) priorities,” as required by the Bank Secrecy Act, which include, but are not limited to, cybercrime, terrorist financing, fraud, and drug/human trafficking.
On June 30, 2021, FinCEN published the first set of “national Anti-Money Laundering (“AML”) priorities,” as required by the Bank Secrecy Act, which include, but are not limited to, cyber-crime, terrorist financing, fraud, and drug/human trafficking.
Other Banking Services Given customer demand for increased convenience and account access, we offer a wide range of products and services, including 24-hour internet banking and voice response information, mobile applications, cash management, business credit cards, overdraft protection, direct deposit, safe deposit boxes, automatic account transfers, peer-to-peer electronic pay solutions and personal financial management solutions.
Other Banking Services Given customer demand for increased convenience and account access, we offer a wide range of products and services, including 24-hour internet banking and voice response information, mobile applications, cash management, business credit cards, overdraft protection, direct deposit, safe deposit boxes, automatic account transfers, peer-to-peer electronic pay solutions, including Zell e for small businesses and personal financial management solutions.
In addition, effective January 1, 2019, the capital rules required a capital conservation buffer of 2.5%, comprised of CET1, above each of the minimum risk-based capital ratio requirements (CET1, Tier 1, and total capital), which is designed to absorb losses during periods of economic stress.
In addition, the capital rules required a capital conservation buffer of 2.5%, comprised of CET1, above each of the minimum risk-based capital ratio requirements (CET1, Tier 1, and total capital), which is designed to absorb losses during periods of economic stress.
The Guidance is triggered when CRE loan concentrations exceed either: • Total reported loans for construction, land development, and other land of 100% or more of a bank’s total risk-based capital; or • Total reported loans secured by multifamily and nonowner-occupied, nonfarm nonresidential properties and loans for construction, land development, and other land (excluding loans secured by farmland) of 300% or more of a bank’s total risk-based capital.
The Guidance is triggered when commercial real estate loan concentrations exceed either: • Total reported loans for construction, land development, and other land of 100% or more of a bank’s total risk-based capital; or • Total reported loans secured by multifamily and nonowner-occupied, nonfarm nonresidential properties and loans for construction, land development, and other land (excluding loans secured by farmland) of 300% or more of a bank’s total risk-based capital.
Please see Note 17 — Capital and Regulatory Matters in the notes to the consolidated financial statements for consolidated capital ratios of the Company and Origin Bank as of December 31, 2024. Payment of Dividends We are a legal entity separate and distinct from Origin Bank and our other subsidiaries.
Please see Note 18 — Capital and Regulatory Matters in the notes to the consolidated financial statements for consolidated capital ratios of the Company and Origin Bank as of December 31, 2025. Payment of Dividends We are a legal entity separate and distinct from Origin Bank and our other subsidiaries.
Commercial and industrial loans have contributed interest income of $163.9 million, $155.8 million and $90.5 million for the years ended December 31, 2024, 2023 and 2022, respectively. Mortgage Warehouse Loans. Mortgage warehouse loans are extended to mortgage companies and secured by loan participations in mortgages that are typically sold within 15 to 25 days.
Commercial and industrial loans have contributed interest income of $144.8 million, $163.9 million and $155.8 million for the years ended December 31, 2025, 2024 and 2023, respectively. Mortgage Warehouse Loans. Mortgage warehouse loans are extended to mortgage companies and secured by loan participations in mortgages that are typically sold within 15 to 25 days.
However, the annual dividend rate for member banks with total assets in excess of $12.841 billion, is based on a floating dividend rate tied to 10-year U.S. Treasuries with the maximum dividend rate capped at 6%.
However, the annual dividend rate for member banks with total assets in excess of $13.182 billion, is based on a floating dividend rate tied to 10-year U.S. Treasuries with the maximum dividend rate capped at 6%.
Consumer and residential real estate loans have contributed interest income of $100.6 million, $83.9 million and $51.1 million for the years ended December 31, 2024, 2023 and 2022, respectively. Commercial and Industrial Loans. Commercial and industrial loans are made for a variety of business purposes, including working capital, inventory, equipment and capital expansion.
Consumer and residential real estate loans have contributed interest income of $112.3 million, $100.6 million and $83.9 million for the years ended December 31, 2025, 2024 and 2023, respectively. Commercial and Industrial Loans. Commercial and industrial loans are made for a variety of business purposes, including working capital, inventory, equipment and capital expansion.
Member banks do not have any control over the Federal Reserve System as a result of owning the stock and the stock cannot be sold or traded. As of January 27, 2025, the annual dividend rate for member banks with $12.841 billion or less in total assets is fixed at 6%, which currently applies to us.
Member banks do not have any control over the Federal Reserve System as a result of owning the stock and the stock cannot be sold or traded. Effective January 1, 2026, the annual dividend rate for member banks with $13.182 billion or less in total assets is fixed at 6%, which currently applies to us.
We have also established a corporate loan committee with authority to approve loans up to the legal lending limit of Origin Bank. During 2024, credit relationships of $8.0 million or greater were generally presented to the corporate loan committee for approval or ratification of approval prior to committing to the loan.
We have also established a corporate loan committee with authority to approve loans up to the legal lending limit of Origin Bank. During 2025, credit relationships of $8.0 million or greater were generally presented to the corporate loan committee for approval or ratification of approval prior to committing to the loan. In October 2025, this amount increased to $10.0 million.
Mortgage warehouse loans have contributed interest income of $31.6 million, $21.5 million and $18.7 million for the years ended December 31, 2024, 2023 and 2022, respectively. 9 Table of Contents Credit Risks .
Mortgage warehouse loans have contributed interest income of $28.4 million, $31.6 million and $21.5 million for the years ended December 31, 2025, 2024 and 2023, respectively. 9 Table of Contents Credit Risks .
At December 31, 2024, we held $8.22 billion of total deposits and have grown deposits at a compound annual growth rate of 17.2% since December 31, 2003. At December 31, 2024, 93.4% of our total deposits were core deposits (defined as total deposits excluding time deposits greater than $250,000, brokered and Certificate of Deposit Account Registry Service deposits).
At December 31, 2025, we held $8.31 billion of total deposits and have grown deposits at a compound annual growth rate of 16.4% since December 31, 2003. At December 31, 2025, 95.0% of our total deposits were core deposits (defined as total deposits excluding time deposits greater than $250,000, brokered and Certificate of Deposit Account Registry Service deposits).
We offer a wide range of deposit services, including checking, savings, money market accounts and time deposits. We obtain most of our deposits from individuals, small businesses and municipalities in our market areas. At December 31, 2024, 54.8% of our deposits were business deposits, 32.6% were consumer deposits and 11.7% were public fund deposits.
We offer a wide range of deposit services, including checking, savings, money market accounts and time deposits. We obtain most of our deposits from individuals, small businesses and municipalities in our market areas. At December 31, 2025, 56.9% of our deposits were business deposits, 31.3% were consumer deposits and 11.8% were public fund deposits.
Based on the Company’s current activities, we do not currently expect that the Volcker Rule will have a material effect on our businesses or revenue after exceeding $10 billion, although it may prevent us from engaging in certain new activities or increase the compliance cost of new activities.
At December 31, 2025, we had total consolidated assets of $9.72 billion. Based on the Company’s current activities, we do not currently expect that the Volcker Rule will have a material effect on our businesses or revenue after exceeding $10 billion, although it may prevent us from engaging in certain new activities or increase the compliance cost of new activities.
Federal CRA regulations require, among other things, that evidence of discrimination against applicants on a prohibited basis, and illegal or abusive lending practices be considered in the CRA evaluation. Origin Bank has a rating of “Satisfactory” in its most recent CRA evaluation.
Federal CRA regulations require, among other things, that evidence of discrimination against applicants on a prohibited basis, and illegal or abusive lending practices be considered in the CRA evaluation.
Commercial real estate loans have contributed interest income of $146.5 million, $135.1 million and $88.2 million for the years ended December 31, 2024, 2023 and 2022, respectively, while construction/land/land development loans have contributed interest income of $73.9 million, $69.6 million and $36.4 million for the years ended December 31, 2024, 2023 and 2022, respectively.
Commercial real estate loans have contributed interest income of $143.0 million, $146.5 million and $135.1 million for the years ended December 31, 2025, 2024 and 2023, respectively, while construction/land/land development loans have contributed interest income of $48.7 million, $73.9 million and $69.6 million for the years ended December 31, 2025, 2024 and 2023, respectively.
Over 300 employees have participated in this program since 2019. We also offer a nationally-recognized financial wellness program (“SmartDollar”) that is designed to assist our employees in becoming debt-free and in saving money for emergencies and retirement, empowering them to become better financially prepared for their future, which during 2024, had an over 46% participation rate.
We also offer a nationally-recognized financial wellness program (SmartDollar) that is designed to assist our employees in becoming debt-free and in saving money for emergencies and retirement, empowering them to become better financially prepared for their future, which during 2025 had a participation rate over 43%.
The Federal Reserve extended the comment period for its proposed changes to its debit card interchange fee rule until May 12, 2024, and at December 31, 2024, the proposal is still under review.
The Federal Reserve extended the comment period for its proposed changes to its debit card interchange fee rule until May 12, 2024, and at December 31, 2025, the proposal is still under review. At December 31, 2025, we had total consolidated assets of $9.72 billion.
Additionally, in one specific initiative designed to help the communities we serve, our Project Enrich program provides employees with up to twenty hours of paid time off per year to volunteer in their communities. In 2024, the employees of Origin volunteered 4,615 hours in the community during working hours, not including 1,487 hours of personal time outside of working hours.
Additionally, our Project Enrich program provides employees with up to twenty hours of paid time off per year to volunteer in the communities we serve. In 2025, the employees of Origin volunteered 4,473 hours during working hours, not including 1,273 hours of personal time outside of working hours.
We believe our long-term experience in CRE lending, underwriting policies, internal controls, and other policies currently in place, as well as our loan and credit monitoring and administration procedures, are generally appropriate to managing our concentrations as required under the Guidance. As of December 31, 2024, our CRE loan concentrations were below the Guidance thresholds discussed above.
We believe our long-term experience in commercial real estate lending, underwriting policies, internal controls, and other policies currently in place, as well as our loan and credit monitoring and administration procedures, are generally appropriate to managing our concentrations as required under the Guidance.
We expect this trend of state-level activity in those areas to continue and are continually monitoring developments in the states in which our clients are located. 24 Table of Contents Anti-Tying Restrictions In general, a bank may not extend credit, lease, sell property, or furnish any services or fix or vary the consideration for them on the condition that (1) the client obtain or provide some additional credit, property, or services from or to the bank or bank holding company or their subsidiaries or (2) the client not obtain some other credit, property, or services from a competitor, except to the extent reasonable conditions are imposed to assure the soundness of the credit extended.
Anti-Tying Restrictions In general, a bank may not extend credit, lease, sell property, or furnish any services or fix or vary the consideration for them on the condition that (1) the client obtain or provide some additional credit, property, or services from or to the bank or bank holding company or their subsidiaries or (2) the client not obtain some other credit, property, or services from a competitor, except to the extent reasonable conditions are imposed to assure the soundness of the credit extended.
We provide a broad range of financial services and currently operates more than 60 locations in Dallas/Fort Worth, East Texas, Houston, North Louisiana, Mississippi, South Alabama and the Florida Panhandle .
We provide a broad range of financial services and currently operates more than 56 locations in Dallas/Fort Worth, East Texas, Houston, North Louisiana, Mississippi, South Alabama and the Florida Panhandle . In addition, we provide a broad range of insurance agency products and services through our wholly owned insurance agency subsidiary, Forth Insurance, LLC.
At December 31, 2024, our loans held for investment (“LHFI”) portfolio was comprised of 31.1% commercial and industrial loans including mortgage warehouse loans, and 44.1% commercial real estate loans, including construction/land/land development loans. Our commercial real estate loans are 39.4% owner occupied and 60.6% non-owner occupied. At December 31, 2024, approximately 23.1% of our deposits were noninterest-bearing demand deposits.
At December 31, 2025, our LHFI portfolio was comprised of 32.8% commercial and industrial loans including mortgage warehouse loans, and 40.9% commercial real estate loans, including construction/land/land development loans. Our commercial real estate loans are 39.8% owner-occupied and 60.2% non-owner-occupied. At December 31, 2025, approximately 23.8% of our deposits were noninterest-bearing demand deposits.
Over the past several years, Origin Bank has been recognized for our commitment to our communities and our customers, including: • United Way Circle of Honor and Gold Award • Spirit of Giving Award • Boys and Girls Club as well as multiple educational initiatives Origin has a responsibility under the Community Reinvestment Act (‘CRA’) to help meet the credit needs of its communities.
Over the past several years, Origin Bank has been honored to be recognized for our commitment to our communities and our customers, including: • United Way Circle of Honor and Gold Award • Volunteer Louisiana Champion of Service • Spirit of Giving Award • Boys and Girls Club • State of Louisiana Distinguished Partner in Education • Best of the Delta 14 Table of Contents Origin has a responsibility under the Community Reinvestment Act (“CRA”) to help meet the credit needs of its communities.
These rules also address initial rate adjustment notices for adjustable-rate mortgages, periodic statements for residential mortgage loans, and prompt crediting of mortgage payments and response to requests for payoff amounts. 25 Table of Contents Non-Discrimination Policies Origin Bank is also subject to, among other things, the provisions of the Equal Credit Opportunity Act (“ECOA”) and the Fair Housing Act (“FHA”), both of which prohibit discrimination based on race or color, religion, national origin, sex, and familial status in any aspect of a consumer or commercial credit or residential real estate transaction.
Non-Discrimination Policies Origin Bank is also subject to, among other things, the provisions of the Equal Credit Opportunity Act (“ECOA”) and the Fair Housing Act (“FHA”), both of which prohibit discrimination based on race or color, religion, national origin, sex, and familial status in any aspect of a consumer or commercial credit or residential real estate transaction.
Debit Interchange Fees Debit card interchange fee restrictions set forth in the Durbin Amendment, as implemented by regulations of the Federal Reserve, cap the maximum debit interchange fee that a debit card issuer may receive per transaction.
As of December 31, 2025, our commercial real estate loan concentrations were below the Guidance thresholds discussed above. Debit Interchange Fees Debit card interchange fee restrictions set forth in the Durbin Amendment, as implemented by regulations of the Federal Reserve, cap the maximum debit interchange fee that a debit card issuer may receive per transaction.
In addition to base pay and stock awards, we administer several incentive programs that are designed to link performance to pay and drive results towards the achievement of overall corporate goals. We offer robust health, wellness and financial benefits as detailed below.
In addition to base pay and stock awards, we have several incentive programs designed to link performance to pay and drive results towards the achievement of overall corporate goals.
In 2023, we launched a formal mentorship program where employees connect with an experienced mentor in structured sessions which prepare them for future growth opportunities. We provide advanced development for next-generation leaders via our formal Leadership programs, the Origin Leadership Academy and the Emerging Leaders Council , which provide structured training and collaboration with other aspiring leaders throughout the organization.
Our formal mentorship program provides structured guidance from experienced leaders, supporting employees as they prepare for future roles. We provide advanced development for next-generation leaders via our formal Leadership programs, the Origin Leadership Academy and the Emerging Leaders Council, which provide structured training and collaboration with other aspiring leaders throughout the organization.
The Federal Reserve’s assessment of Origin Bank’s CRA record is made available to the public. CRA agreements with private parties must be disclosed and annual CRA reports must be made to the Federal Reserve.
CRA agreements with private parties must be disclosed and annual CRA reports must be made to the Federal Reserve.
As further described below, each of the Company and Origin Bank is well-capitalized under applicable regulatory standards as of December 31, 2024, and Origin Bank has an overall rating of “Satisfactory” in its most recent CRA evaluation.
As further described below, each of the Company and Origin Bank is well-capitalized under applicable regulatory standards as of December 31, 2025, and Origin Bank has an overall rating of “Satisfactory” in its most recent CRA evaluation. 16 Table of Contents Source of Strength Obligations A bank holding company, such as us, is required to act as a source of financial and managerial strength to its subsidiary bank.
Insurance of deposits may be terminated by the FDIC upon a finding that the institution has engaged in unsafe and unsound practices, is in an unsafe or unsound condition to continue operations, or has violated any applicable law, regulation, rule, order or condition imposed by a bank’s federal regulatory agency.
The FDIC could further increase the deposit insurance assessments for certain insured depository institutions, including Origin Bank, if the DIF reserve ratio is not restored as projected. 21 Table of Contents Insurance of deposits may be terminated by the FDIC upon a finding that the institution has engaged in unsafe and unsound practices, is in an unsafe or unsound condition to continue operations, or has violated any applicable law, regulation, rule, order or condition imposed by a bank’s federal regulatory agency.
We make significant investments in formal development programs to build our talent pipeline. Talent development at Origin begins with our comprehensive recruitment program and continues throughout the employee life cycle. The Company recognizes that its success is highly dependent on its ability to attract, retain and develop our people.
Talent development at Origin begins with our comprehensive recruitment program and continues throughout the employee life cycle. We recognize that our success is highly dependent on our ability to attract, retain and develop our people. To foster this development, the Company engages in annual succession planning focused on building a strong, diverse talent pipeline.
Our principal executive offices are located at 500 South Service Road East, Ruston, Louisiana 71270, and our telephone number is (318) 255-2222. Our website is www.origin.bank.
Corporate Information We were organized as a business corporation in 1991 under the laws of the state of Louisiana. Our principal executive offices are located at 500 South Service Road East, Ruston, Louisiana 71270, and our telephone number is (318) 255-2222. Our website is www.origin.bank.
FinCEN is required to implement regulations to specify how covered financial institutions, such as the Company, should incorporate these national priorities into their AML programs. 22 Table of Contents Economic Sanctions The Office of Foreign Assets Control (“OFAC”) is responsible for helping to ensure that U.S. entities do not engage in transactions with certain prohibited parties, as defined by various Executive Orders and acts of Congress.
Economic Sanctions The Office of Foreign Assets Control (“OFAC”) is responsible for helping to ensure that U.S. entities do not engage in transactions with certain prohibited parties, as defined by various Executive Orders and acts of Congress.
We offer a robust benefits package which includes: • Comprehensive medical benefits with $0 cost options for employees • Competitive ancillary benefits, such as dental, vision, critical illness, legal and identify theft coverage • Generous paid time off (“PTO”) policy • Company-paid short and long-term disability and life insurance • Flexible spending accounts for both healthcare and dependent care • Health savings accounts with Company contributions • 401(k) retirement savings program with Company match, along with free access to financial advisors to assist with retirement planning • Employee Stock Purchase Program • Paid parental leave • Employee Assistance Program which offers counseling and mental wellness appointments at no cost to the employee 12 Table of Contents Employee Engagement Our Dream Manager® program assists our employees in meeting their own personal and professional goals in addition to helping them improve physically, emotionally, intellectually, and spiritually.
We offer robust health, wellness and financial benefits as detailed below: • Comprehensive medical benefits with $0 cost options for employees • Competitive ancillary benefits, such as dental, vision, critical illness, legal and identity theft coverage • Generous paid time off (“PTO”) policy • Company-paid short and long-term disability and life insurance • Flexible spending accounts for both healthcare and dependent care • Health savings accounts with Company contributions • 401(k) retirement savings program with Company match, along with free access to financial advisors to assist with retirement planning • Employee Stock Purchase Program • Paid parental leave • Employee Assistance Program, which offers counseling and mental wellness appointments at no cost to the employee We continue to expand our holistic wellness offerings through programs such as DreamManager, Health & Wellness coaching, financial wellness initiatives, and Project Enrich, all designed to support employees’ physical, emotional, and financial well-being.
Our loan portfolio at the dates indicated was comprised as follows: (Dollars in thousands) December 31, Real estate: 2024 2023 Owner occupied commercial real estate $ 975,947 $ 953,822 Non-owner occupied commercial real estate 1,501,484 1,488,912 Total commercial real estate 2,477,431 2,442,734 Construction/land/land development 864,011 1,070,225 Residential real estate 1,857,589 1,734,935 Total real estate 5,199,031 5,247,894 Commercial and industrial 2,002,634 2,059,460 Mortgage warehouse lines of credit 349,081 329,966 Consumer loans 22,967 23,624 Total LHFI $ 7,573,713 $ 7,660,944 Commercial Real Estate Loans and Construction/Land/Land Development Loans .
Our loan portfolio at the dates indicated was comprised as follows: (Dollars in thousands) December 31, Real estate: 2025 2024 Owner-occupied commercial real estate $ 1,004,801 $ 975,947 Non-owner-occupied commercial real estate 1,519,104 1,501,484 Total commercial real estate 2,523,905 2,477,431 Construction/land/land development 611,220 864,011 Residential real estate 1,997,760 1,857,589 Total real estate 5,132,885 5,199,031 Commercial and industrial 1,989,218 2,002,634 Mortgage warehouse lines of credit 528,781 349,081 Consumer loans 20,033 22,967 Total LHFI $ 7,670,917 $ 7,573,713 Commercial Real Estate Loans and Construction/Land/Land Development Loans .
Our Giving Interns Valuable Experience (“G.I.V.E.”) program was launched in 2021 and since that time, we have welcomed a diverse group of 64 interns from 29 different universities. Over 56% of interns have been minorities.
We conduct regular succession assessments and performance reviews, supported by individualized development plans that guide employees in achieving career goals. Our Giving Interns Valuable Experience (“G.I.V.E.”) program was launched in 2021 and since that time, we have welcomed a diverse group of 83 interns from 31 different universities. Over 39% of interns have been minorities.
We strive to understand the needs of the people in our local communities and how we can help them attain their goals and improve the quality of lives throughout our footprint.
Since our inception, we have been deeply committed to building relationships and making a difference in our local communities. Investing in people, communities and local businesses is part of our mission. We strive to understand their needs and how we can help them attain their goals and improve the quality of lives throughout our five state footprint.
These policies influence, to a significant extent, the overall growth of bank loans, investments, and deposits and the interest rates charged on loans or paid on deposits. We cannot predict the nature of future fiscal and monetary policies or the effect of these policies on our operations and activities, financial condition, results of operations, growth plans or future prospects.
These policies influence, to a significant extent, the overall growth of bank loans, investments, and deposits and the interest rates charged on loans or paid on deposits.
We believe it is only with a diverse, equitable, and inclusive workplace that the organization can truly perform at its best, carry out its vision, and make a difference in the communities we serve.
This value is an essential component of our culture and is demonstrated by the way we conduct business, foster individual and team enrichment, and participate in our communities. We believe it is only with an inclusive workplace that the organization can truly perform at its best, carry out its vision and make a difference in the communities we serve.
In early 2024, we sold substantially all of our mortgage servicing rights (“MSR”) asset and recorded a $410,000 gain on the sale. 10 Table of Contents Insurance We offer a wide variety of commercial and personal property and casualty insurance products through our wholly-owned insurance agency subsidiary, Forth Insurance.
In early 2024, we sold substantially all of our mortgage servicing rights (“MSR”) asset and recorded a $410,000 gain on the sale.
We employ a deposit-focused sales force of business development bankers who have extensive contacts and connections with targeted clients and centers of influence throughout our communities. We also have access to secondary sources of funding, including advances from the Federal Home Loan Bank of Dallas, borrowings at the Federal Reserve Discount Window and other borrowings.
We employ a deposit-focused sales force of business development bankers who have extensive contacts and connections with targeted clients and centers of influence throughout our communities.
Supervision and regulation of banks, their holding companies and affiliates is intended primarily for the protection of depositors and clients, the Deposit Insurance Fund (the “DIF”) of the FDIC, and the U.S. banking and financial system rather than holders of our securities.
Supervision and regulation of banks, their holding companies and affiliates is intended primarily for the protection of depositors and clients, the Deposit Insurance Fund (the “DIF”) of the FDIC, and the U.S. banking and financial system rather than holders of our securities. 15 Table of Contents Regulation of the Company We are registered as a bank holding company with the Board of Governors of the Federal Reserve System (the “Federal Reserve”) under the Bank Holding Company Act, as amended (the “BHC Act”) and have elected to be treated as a financial holding company.
If we find a name on any transaction, account or wire transfer that is on an OFAC list, we must undertake certain specified activities, which could include blocking or freezing the account or transaction requested, and we must notify the appropriate authorities.
If we find a name on any transaction, account or wire transfer that is on an OFAC list, we must undertake certain specified activities, which could include blocking or freezing the account or transaction requested, and we must notify the appropriate authorities. 22 Table of Contents Concentrations in Lending During 2006, the federal bank regulatory agencies released guidance on “Concentrations in Commercial Real Estate Lending” (the “Guidance”) and advised financial institutions of the risks posed by commercial real estate (“CRE”) lending concentrations.
On October 24, 2023, the Office of the Comptroller of the Currency (“OCC”), Federal Reserve, and FDIC issued a final rule to modernize their respective CRA regulations. The revised rules substantially alter the methodology for assessing compliance with the CRA, with material aspects taking effect January 1, 2026, and revised data reporting requirements taking effect January 1, 2027.
Origin Bank has a rating of “Satisfactory” in its most recent CRA evaluation. 23 Table of Contents On October 24, 2023, the Office of the Comptroller of the Currency (“OCC”), Federal Reserve, and FDIC issued a final rule to modernize their respective CRA regulations. The revised rules would have substantially altered the methodology for assessing compliance with the CRA.
Insurance commission and fee income was $26.8 million, $25.1 million and $22.9 million for the years ended December 31, 2024, 2023 and 2022, respectively.
Forth Insurance also has the licensed ability to provide insurance products in other states across the United States. Insurance commission and fee income was $27.1 million, $26.8 million and $25.1 million for the years ended December 31, 2025, 2024 and 2023, respectively.
Regulatory agencies may issue enforcement actions, policy statements, interpretive letters and similar written guidance applicable to us or to Origin Bank.
Regulatory agencies may issue enforcement actions, policy statements, interpretive letters and similar written guidance applicable to us or to Origin Bank. Changes in applicable laws, regulations or regulatory guidance, or their interpretation by regulatory agencies or courts may have a material adverse effect on our and Origin Bank’s business, operations, and earnings.
Mortgage Banking We are also engaged in the residential mortgage banking business, which primarily generates income from the sale of mortgage loans. We originate residential mortgage loans in our markets as a service to our existing customers and as a way to develop relationships with new customers in order to support our core banking strategy.
We originate residential mortgage loans in our markets as a service to our existing customers and as a way to develop relationships with new customers in order to support our core banking strategy. Revenue from our mortgage banking activities was $3.7 million, $6.6 million and $3.4 million for the years ended December 31, 2025, 2024 and 2023, respectively.
At December 31, 2024, we had total assets of $9.68 billion, total loans held for investment (“LHFI”) of $7.57 billion, total deposits of $8.22 billion and total stockholders’ equity of $1.15 billion. We completed an initial public offering of our common stock in May 2018 and began trading on the Nasdaq Stock Market LLC (“Nasdaq”) under the symbol “OBNK”.
At December 31, 2025, we had total assets of $9.72 billion, total loans held for investment (“LHFI”) of $7.67 billion, total deposits of $8.31 billion and total stockholders’ equity of $1.25 billion. Our common stock is traded on the New York Stock Exchange (“NYSE”) under the stock symbol “OBK”.
Any reduction in interchange income as a result of the loss of the exemption for small issuers under the Durbin Amendment could have a significant adverse effect on our business, financial condition and results of operations beginning in the second half of 2026. 23 Table of Contents Community Reinvestment Act Origin Bank is subject to the provisions of the CRA, which imposes a continuing and affirmative obligation, consistent with safe and sound operation, to help meet the credit needs of entire communities where the bank accepts deposits, including low- and moderate-income neighborhoods.
Community Reinvestment Act Origin Bank is subject to the provisions of the CRA, which imposes a continuing and affirmative obligation, consistent with safe and sound operation, to help meet the credit needs of entire communities where the bank accepts deposits, including low- and moderate-income neighborhoods. The Federal Reserve’s assessment of Origin Bank’s CRA record is made available to the public.
We believe the actions we have taken to date will drive earnings improvement of approximately $20.0 million annually on a pre-tax basis. Our Markets We currently operate in the markets of Dallas/Fort Worth, Houston, East Texas, North Louisiana, Mississippi, South Alabama and the Florida Panhandle, all of which offer attractive combinations of diversity, growth and stability.
Looking ahead to 2026, our goal is to achieve an ROAA run rate of 1.15% or higher by the fourth quarter of 2026. Our Markets We currently operate in the markets of Dallas/Fort Worth, Houston, East Texas, North Louisiana, Mississippi, South Alabama and the Florida Panhandle, all of which offer attractive combinations of diversity, growth and stability.
In 2024, our Diversity Council continued Employee Spotlights as a platform to drive engagement and build connections by sharing employees’ stories to highlight different backgrounds and cultures within our organization. Our team members form deeper relationships with those around them based on mutual respect, dignity and understanding. The Company has non-discrimination and anti-harassment policies as outlined in our Employee Handbook.
Our team members form authentic relationships with those around them based on mutual respect, dignity and understanding. The Company has non-discrimination and antiharassment policies as outlined in our employee handbook. These policies drive a workplace and workforce that embraces the highest ethical and moral standards.
Changes in applicable laws, regulations or regulatory guidance, or their interpretation by regulatory agencies or courts may have a material adverse effect on our and Origin Bank’s business, operations, and earnings. 15 Table of Contents Origin Bank, and in some cases, we and our nonbank affiliates, must undergo regular examinations by the appropriate regulatory agency, which will examine for adherence to a range of legal and regulatory compliance responsibilities.
Origin Bank, and in some cases, we and our nonbank affiliates, must undergo regular examinations by the appropriate regulatory agency, which will examine for adherence to a range of legal and regulatory compliance responsibilities. A bank regulator conducting an examination has complete access to the books and records of the examined institution. The results of the examination are confidential.
Human Capital Management At December 31, 2024, we had 1,031 full-time equivalent employees, who benefit from a variety of initiatives designed to retain, grow, and develop them in becoming the best versions of themselves. At Origin, our culture has always been the foundation of our success. We work to define our culture in everything we do.
To offset these competitive disadvantages, we depend on our reputation as having greater personal service, consistency, flexibility and the ability to make credit and other business decisions quickly. 11 Table of Contents Human Capital Management At December 31, 2025, we had 988 full-time equivalent employees, who benefit from a variety of initiatives designed to retain, grow, and develop them in becoming the best versions of themselves.
Building on over 100 years of working in our community, Origin offers unique opportunities for collective action, enhancing existing giving and volunteer initiatives with the Origin community. Employee Feedback Attracting, developing and retaining talented employees is critical to our success and is an integral part of our human capital strategy.
Building on over 100 years of working in our community, Origin offers unique opportunities for collective action, enhancing existing giving and volunteer initiatives with the Origin community. As part of Origin’s ongoing commitment to expanding financial education, we launched a targeted digital campaign in 2024, continuing through 2025, that leverages paid social media and an Always-On Paid Search strategy.
Concentrations in Lending During 2006, the federal bank regulatory agencies released guidance on “Concentrations in Commercial Real Estate Lending” (the “Guidance”) and advised financial institutions of the risks posed by commercial real estate (“CRE”) lending concentrations. The Guidance requires that appropriate processes be in place to identify, monitor and control risks associated with real estate lending concentrations.
The Guidance requires that appropriate processes be in place to identify, monitor and control risks associated with real estate lending concentrations. Higher allowances for loan losses and capital levels may also be required.
In 2023, Origin Bank announced the formation of the Diversity Council , which consists of 17 diverse employees that collectively advance our Diversity, Equity, and Inclusion efforts in a way that makes a difference within our workplace and in the communities we serve.
Our Diversity Council consists of diverse employees that collectively advance our belonging efforts in a way that makes a difference within our workplace and in the communities we serve. We remain committed to ensuring all employees have equitable opportunities to grow, contribute, and be recognized for their performance. We actively support and celebrate cultural events throughout the year.
None of our employees are represented by any collective bargaining unit or are parties to a collective bargaining agreement. We believe that our relations with our employees are good. Corporate Information We were organized as a business corporation in 1991 under the laws of the state of Louisiana.
None of our employees are represented by any collective bargaining unit or are parties to a collective bargaining agreement. We believe that our relations with our employees are good. Community & Volunteerism One of our core values is individual and corporate commitment to our communities. For Origin, this means more than fancy words that are written to impress our stakeholders.
We receive hundreds of written comments from each survey that in turn are used to improve processes, policies, or programs which show tangible affirmation of those comments.
We receive hundreds of written comments from each survey that in turn are used to improve processes, policies and programs in an effort to show tangible affirmation of those comments. 12 Table of Contents “The Origin Insider,” our monthly meeting series launched during the pandemic, continues to offer employees deeper insight into Bank operations, leadership perspectives, and topics that support personal and professional well-being.
Due to our adoption rate, we won a national award in 2021 from the Dave Ramsey Foundation called the “Vision” award. We employ a full-time certified Holistic Health Coach who spearheads our Health & Wellness initiatives.
Due to our adoption rate, we won a national award in 2021 from the Dave Ramsey Foundation called the “Vision” award. Talent Development We have enhanced our culture and talent management function by implementing a Human Capital Management (“HCM”) program. We make significant investments in formal development programs to build our talent pipeline.
It is in our attitudes, our diversity, our core values; it is in our interactions with our customers and communities. Culture is the soul of who we are as a company, and it starts with our employees. 11 Table of Contents Social Impact At Origin, we believe success is built on the collaborative efforts of exceptional talent.
At Origin, our culture has always been the foundation of our success. We work to define our culture in everything we do. It is in our attitudes, our desire to help others, our core values; it is in our interactions with our customers and communities.
Employee feedback is highly valued at Origin and our employees provide anonymous input via multiple engagement surveys each year, facilitated by Glint, a people success platform built on an approach that helps organizations increase employee engagement, develop their people, and improve business results.
Employee feedback is highly valued at Origin and employees provide anonymous input through multiple engagement surveys each year, facilitated by Microsoft Viva Glint (“Glint”), a platform designed to strengthen engagement, development, and organizational performance. Origin continues to rank within the top tier of Glint’s global customer base for employee engagement.
With over 35 years of growth in the insurance industry and over 130 experienced professionals, our agency has primary market locations across Louisiana, but also serves customers in Texas, Mississippi, Arkansas and other states across the United States.
Insurance We offer a wide variety of commercial and personal property and casualty insurance products through our wholly-owned insurance agency subsidiary, Forth Insurance. With decades of collective experience in the insurance industry and over 130 experienced professionals, our agency has primary operating locations across Louisiana, with additional offices in Dallas, Texas.
Removed
As noted in our Management’s Discussion and Analysis of Financial Condition and Results of Operations, Results of Operations, Noninterest Expense section of this report we expect to close six of these banking centers at the end of February 2025.
Added
We believe the actions we have taken through December 31, 2025, in furtherance of our Optimize Origin initiative have driven or will drive earnings improvement of approximately $37.2 million annually on a pre-tax basis. As a result, we exceeded our original goal in delivering a ROAA run rate of 1.19% for the fourth quarter of 2025.
Removed
On May 9, 2023, the Company provided written notice to Nasdaq of its determination to voluntarily withdraw the listing of the Company’s common stock from Nasdaq and transfer the listing to the New York Stock Exchange (“NYSE”).
Added
We also have access to secondary sources of funding, including advances from the Federal Home Loan Bank of Dallas, borrowings at the Federal Reserve Discount Window, brokered deposits and other borrowings. 10 Table of Contents Mortgage Banking We are also engaged in the residential mortgage banking business, which primarily generates income from the sale of mortgage loans.
Removed
The listing and trading of the common stock on Nasdaq ended at market close on May 19, 2023, and trading commenced on the NYSE at market open on May 22, 2023, under the new stock symbol “OBK”.

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Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

76 edited+19 added−25 removed189 unchanged
Biggest changeOther primary sources of funds consist of cash flows from operations, maturities and sales of investment securities, and proceeds from the issuance and sale of our equity and debt securities to investors. Access to liquidity may be negatively impacted by the value of our securities portfolio, if liquidity and/or business strategy necessitate the sales of securities in a loss position.
Biggest changeAccess to liquidity may be negatively impacted by the value of our securities portfolio, if liquidity and/or business strategy necessitate the sales of securities in a loss position. Additional liquidity is provided by the ability to borrow from the Federal Reserve Bank of Dallas and the Federal Home Loan Bank of Dallas.
These risks are discussed more fully after the summary, and risks include, but are not limited to, the following: • Current uncertain economic conditions (both domestic and international) pose challenges, and could adversely affect our business, financial condition and results of operations; • Changes in interest rates could have an adverse impact on our results of operations and financial condition including decreased net interest margin, impact on loan demand, competition for, and increased cost of funding, deposits, and the value of our securities portfolio (including any losses recognized); • We are subject to risks related to inflation, rising prices and the government and Federal Reserve response to the same; • The failure to maintain an effective system of controls and procedures, including internal control over financial and non-financial reporting; • We may not be able to adequately measure and limit our credit risk; • Our allowance for loan credit losses may prove to be insufficient to absorb losses inherent in our loan portfolio and our earnings could decrease; • Negative changes in the economy affecting real estate values and liquidity could impair the value of collateral securing certain of our loans; • The deterioration in value of receivables, inventory, equipment or other commercial collateral could expose us to credit losses; • The geographic concentration of our markets in Texas, Louisiana, Mississippi, South Alabama and the Florida Panhandle makes us more sensitive than our more geographically diversified competitors to adverse changes in the local economy; • Our loan portfolio contains a number of large loans to certain borrowers, and deterioration in the financial condition of these borrowers could have a significant adverse impact on our asset quality; • The loss of executive management or other key employees, as well as our ability to attract and retain profitable bankers, could adversely impact our business or reputation; • Fraud, unauthorized access, cyber-crime and other threats to data security has impacted and may cause harm to our business, additionally, the impact of fraud or misconduct by internal or external parties which we may not be able to prevent, detect or mitigate; • We may have exposure to tax liabilities that are larger than we anticipate; • The small to medium-sized businesses that we lend to may have fewer resources to weather adverse business developments, which may impair our borrowers’ ability to repay loans; • We face significant competition to attract and retain customers, which could impair our growth, decrease our profitability or result in loss of market share; • Our ability to maintain our reputation is critical to the success of our business; • Risks related to ESG strategies and initiatives, the scope and pace of which could alter our reputation and shareholder, associate, customer and third-party affiliations; • Our business has grown rapidly, and we may not be able to maintain our historical rate of growth, which could have an adverse effect on our ability to successfully implement our business strategy; 27 Table of Contents • We may pursue acquisitions or new lines of business in the future, which could expose us to financial, execution and operational risks; • We are susceptible to environmental risks, such as hurricanes and other natural disasters, adverse weather and climate change effects; • We have a continuing need for technological change, and we may not have the resources to effectively implement new technology, or we may experience operational challenges when implementing new technology; • The rapid advancement and integration of artificial intelligence in financial services present risks related to data security, regulatory compliance, algorithmic biases, and operational reliability, which could impact our business, reputation, and regulatory obligations; • The effectiveness of derivative financial instruments and hedging activities to manage risks; • We are subject to various liquidity risks, credit, and market risks; • Risks related to the extensive use, reliability, disruption, and accuracy of the models and data we rely on; • Our ability to maintain adequate internal controls over financial reporting; • Our reliance on third parties to provide key components of our business infrastructure; • Risks related to potential claims, damages, penalties, fines and reputational damage resulting from pending or future litigation, regulatory proceedings and enforcement actions; • We operate in a highly regulated environment and the laws and regulations that govern our operations, including accounting policies, standards, and interpretations, could subject us to regulatory consequences; • We are subject to stringent capital requirements, which may result in lower returns on equity, require us to raise additional capital, limit growth opportunities or result in regulatory restrictions; • The market price of our common stock may be subject to substantial fluctuations and is subject to risk of loss; and • Other factors and risks described under “Risk Factors” herein and in any of our subsequent reports filed with the SEC and available on our website at www.sec.gov .
These risks are discussed more fully after the summary, and risks include, but are not limited to, the following: • Current uncertain economic conditions (both domestic and international) and increased geopolitical risks pose challenges, and could adversely affect our business, financial condition and results of operations; • Changes in interest rates could have an adverse impact on our results of operations and financial condition including decreased net interest margin, impact on loan demand, competition for, and increased cost of funding, deposits, and the value of our securities portfolio (including any losses recognized); • We are subject to risks related to inflation, rising prices and the government and Federal Reserve response to the same; • The failure to maintain an effective system of controls and procedures, including internal control over financial and non-financial reporting; • We may not be able to adequately measure and limit our credit risk; • Our allowance for loan credit losses may prove to be insufficient to absorb losses inherent in our loan portfolio and our earnings could decrease; • Negative changes in the economy affecting real estate values and liquidity could impair the value of collateral securing certain of our loans; • The deterioration in value of receivables, inventory, equipment or other commercial collateral could expose us to credit losses; 26 Table of Contents • The geographic concentration of our markets in Texas, Louisiana, Mississippi, South Alabama and the Florida Panhandle makes us more sensitive than our more geographically diversified competitors to adverse changes in the local economy; • Our loan portfolio contains a number of large loans to certain borrowers, and deterioration in the financial condition of these borrowers could have a significant adverse impact on our asset quality; • The loss of executive management or other key employees, as well as our ability to attract and retain profitable bankers, could adversely impact our business or reputation; • Fraud, unauthorized access, cyber-crime and other threats to data security has impacted and may cause harm to our business, additionally, the impact of fraud or misconduct by internal or external parties which we may not be able to prevent, detect or mitigate; • We may have exposure to tax liabilities that are larger than we anticipate; • The small to medium-sized businesses that we lend to may have fewer resources to weather adverse business developments, which may impair our borrowers’ ability to repay loans; • We face significant competition to attract and retain customers, which could impair our growth, decrease our profitability or result in loss of market share; • Our ability to maintain our reputation is critical to the success of our business; • Risks related to sustainability strategies and initiatives, the scope and pace of which could alter our reputation and shareholder, associate, customer and third-party affiliations; • Our business has grown rapidly, and we may not be able to maintain our historical rate of growth, which could have an adverse effect on our ability to successfully implement our business strategy; • We may pursue acquisitions or new lines of business in the future, which could expose us to financial, execution and operational risks; • We are susceptible to environmental risks, such as hurricanes and other natural disasters, adverse weather and climate change effects; • We have a continuing need for technological change, and we may not have the resources to effectively implement new technology, or we may experience operational challenges when implementing new technology; • The rapid advancement and integration of artificial intelligence in financial services present risks related to data security, regulatory compliance, algorithmic biases, and operational reliability, which could impact our business, reputation, and regulatory obligations; • The effectiveness of derivative financial instruments and hedging activities to manage risks; • We are subject to various liquidity risks, credit, and market risks; • Risks related to the extensive use, reliability, disruption, and accuracy of the models and data we rely on; • Our ability to maintain adequate internal controls over financial reporting; • Our reliance on third parties to provide key components of our business infrastructure; • Risks related to potential claims, damages, penalties, fines and reputational damage resulting from pending or future litigation, regulatory proceedings and enforcement actions; • We operate in a highly regulated environment and the laws and regulations that govern our operations, including accounting policies, standards, and interpretations, could subject us to regulatory consequences; • We are subject to stringent capital requirements, which may result in lower returns on equity, require us to raise additional capital, limit growth opportunities or result in regulatory restrictions; 27 Table of Contents • The market price of our common stock may be subject to substantial fluctuations and is subject to risk of loss; and • Other factors and risks described under “Risk Factors” herein and in any of our subsequent reports filed with the SEC and available on our website at www.sec.gov .
There are many factors that may impact the market price and trading volume of our common stock, including, without limitation: • actual or anticipated fluctuations in our operating results, financial condition or asset quality; • changes in economic or business conditions; • the effects of, and changes in, trade, monetary and fiscal policies, including the interest rate policies of the Federal Reserve, or in laws or regulations affecting us; • the public reaction to our press releases, our other public announcements and our filings with the SEC; • changes in accounting standards, policies, guidance, interpretations or principles; • the number (if any) of securities analysts covering us; • publication of research reports about us, our competitors, or the financial services industry generally, or changes in, or failure to meet, securities analysts’ estimates of our financial and operating performance, or lack of research reports by industry analysts or ceasing of coverage; • changes in market valuations or earnings of companies that investors deem comparable to us; • the trading volume of our common stock; • future issuances of our common stock or other securities; • future sales of our common stock by us or our directors, executive officers or significant stockholders; • additions or departures of key personnel; 46 Table of Contents • perceptions in the marketplace regarding our competitors and us; • significant acquisitions or business combinations, strategic partnerships, joint ventures or capital commitments by or involving our competitors or us; • other economic, competitive, governmental, regulatory and technological factors affecting our operations, pricing, products and services; and • other news, announcements or disclosures (whether by us or others) related to us, our competitors, our core market or the financial services industry.
There are many factors that may impact the market price and trading volume of our common stock, including, without limitation: • actual or anticipated fluctuations in our operating results, financial condition or asset quality; • changes in economic or business conditions; • the effects of, and changes in, trade, monetary and fiscal policies, including the interest rate policies of the Federal Reserve, or in laws or regulations affecting us; • the public reaction to our press releases, our other public announcements and our filings with the SEC; • changes in accounting standards, policies, guidance, interpretations or principles; • the number (if any) of securities analysts covering us; • publication of research reports about us, our competitors, or the financial services industry generally, or changes in, or failure to meet, securities analysts’ estimates of our financial and operating performance, or lack of research reports by industry analysts or ceasing of coverage; • changes in market valuations or earnings of companies that investors deem comparable to us; • the trading volume of our common stock; • future issuances of our common stock or other securities; • future sales of our common stock by us or our directors, executive officers or significant stockholders; • additions or departures of key personnel; 44 Table of Contents • perceptions in the marketplace regarding our competitors and us; • significant acquisitions or business combinations, strategic partnerships, joint ventures or capital commitments by or involving our competitors or us; • other economic, competitive, governmental, regulatory and technological factors affecting our operations, pricing, products and services; and • other news, announcements or disclosures (whether by us or others) related to us, our competitors, our core market or the financial services industry.
Our acquisition activities could be material to our business and involve a number of risks, including those associated with: • the identification of suitable institutions or assets for acquisition; • the diversion of management attention from the operation of our existing business to identify, evaluate and negotiate potential transactions; • the ability to attract funding to support additional growth within acceptable risk tolerances; • the use of inaccurate estimates and judgments to evaluate credit, operations, management and market risks with respect to the target institution or assets; • the ability to maintain asset quality; 38 Table of Contents • the adequacy of due diligence and the potential exposure to unknown or contingent liabilities related to the acquisition; • the retention of customers and key personnel, including bankers; • the timing and uncertainty associated with obtaining necessary regulatory approvals; • the incurrence of an impairment of goodwill associated with an acquisition and adverse effects on our results of operations; • the ability to successfully integrate acquired businesses; • litigation risk; and • the maintenance of adequate regulatory capital.
Our acquisition activities could be material to our business and involve a number of risks, including those associated with: • the identification of suitable institutions or assets for acquisition; • the diversion of management attention from the operation of our existing business to identify, evaluate and negotiate potential transactions; • the ability to attract funding to support additional growth within acceptable risk tolerances; • the use of inaccurate estimates and judgments to evaluate credit, operations, management and market risks with respect to the target institution or assets; • the ability to maintain asset quality; • the adequacy of due diligence and the potential exposure to unknown or contingent liabilities related to the acquisition; • the retention of customers and key personnel, including bankers; • the timing and uncertainty associated with obtaining necessary regulatory approvals; • the incurrence of an impairment of goodwill associated with an acquisition and adverse effects on our results of operations; 37 Table of Contents • the ability to successfully integrate acquired businesses; • litigation risk; and • the maintenance of adequate regulatory capital.
Further, such losses could be realized into earnings should liquidity and/or business strategy necessitate the sales of securities in a loss position. 29 Table of Contents Additionally, further increases in interest rates may, among other things, reduce the demand for loans and our ability to originate loans and decrease loan repayment rates.
Further, such losses could be realized into earnings should liquidity and/or business strategy necessitate the sales of securities in a loss position. 29 Table of Contents Additionally, future increases in interest rates may, among other things, reduce the demand for loans and our ability to originate loans and decrease loan repayment rates.
The financial services industry is undergoing rapid technological changes with frequent introductions of new technology-driven products and services (including those related to or involving artificial intelligence, machine learning, blockchain and other distributed ledger technologies) and an established and growing demand for mobile and other phone and computer banking applications.
The financial services industry is undergoing rapid technological changes with frequent introductions of new technology-driven products and services (including those related to or involving artificial intelligence, machine learning, stablecoins, blockchain and other distributed ledger technologies) and an established and growing demand for mobile and other phone and computer banking applications.
Such estimates rely upon complex modeling inputs and judgments, including forecasts of economic conditions, which may be rendered inaccurate and/or no longer subject to accurate forecasting; 28 Table of Contents • our ability to assess the creditworthiness of our borrowers may be impaired if the models and approaches we use to select, manage, and underwrite loans become less predictive of future charge-offs; • regulatory scrutiny of the industry has increased and could continue to increase, leading to increased regulation of the industry that could lead to a higher cost of compliance, limit our ability to pursue business opportunities and increase our exposure to litigation or fines; • monetary policy or other market conditions could cause rapid changes in interest rates and asset values that would have a materially adverse impact on our profitability and overall financial condition; • increased taxes would limit our ability to pursue growth and return profits to shareholders; and • erosion in the fiscal condition of the U.S.
Such estimates rely upon complex modeling inputs and judgments, including forecasts of economic conditions, which may be rendered inaccurate and/or no longer subject to accurate forecasting; • our ability to assess the creditworthiness of our borrowers may be impaired if the models and approaches we use to select, manage, and underwrite loans become less predictive of future charge-offs; • regulatory scrutiny of the industry has increased and could continue to increase, leading to increased regulation of the industry that could lead to a higher cost of compliance, limit our ability to pursue business opportunities and increase our exposure to litigation or fines; • monetary policy or other market conditions could cause rapid changes in interest rates and asset values that would have a materially adverse impact on our profitability and overall financial condition; • increased taxes would limit our ability to pursue growth and return profits to shareholders; and • erosion in the fiscal condition of the U.S.
If our policies, procedures and systems are deemed deficient, we would be subject to liability, including fines and regulatory actions such as restrictions on our ability to pay dividends and the necessity to obtain regulatory approvals to proceed with certain aspects of our business plan, which would negatively impact our business, financial condition and results of operations. 45 Table of Contents Failure by Origin Bank to perform satisfactorily on its Community Reinvestment Act (“CRA”) evaluations could make it more difficult for our business to grow.
If our policies, procedures and systems are deemed deficient, we would be subject to liability, including fines and regulatory actions such as restrictions on our ability to pay dividends and the necessity to obtain regulatory approvals to proceed with certain aspects of our business plan, which would negatively impact our business, financial condition and results of operations. 43 Table of Contents Failure by Origin Bank to perform satisfactorily on its Community Reinvestment Act (“CRA”) evaluations could make it more difficult for our business to grow.
We could also face the following risks in connection with the following events: • inflationary pressures remained elevated throughout 2023 and 2024, and may to continue into 2025; • market developments, economic stagnation or slowdowns, and tariffs are expected to affect consumer confidence levels and may cause adverse changes in payment patterns, resulting in increased delinquencies and default rates on loans and other credit facilities; • the processes we use to estimate the allowance for credit losses and other reserves may prove to be unreliable.
We could also face the following risks in connection with the following events: • inflationary pressures remained elevated throughout 2024 and 2025, and may continue into 2026; • market developments, economic stagnation or slowdowns, and tariffs are expected to affect consumer confidence levels and may cause adverse changes in payment patterns, resulting in increased delinquencies and default rates on loans and other credit facilities; • the processes we use to estimate the allowance for credit losses and other reserves may prove to be unreliable.
These problems, losses or defaults could have an adverse effect on our business, financial condition and results of operations. 44 Table of Contents Risks Related to the Regulation of Our Industry We operate in a highly regulated environment and the laws and regulations that govern our operations, corporate governance, executive compensation and accounting principles, or changes in them, or our failure to comply with them, could subject us to regulatory action or penalties.
These problems, losses or defaults could have an adverse effect on our business, financial condition and results of operations. 42 Table of Contents Risks Related to the Regulation of Our Industry We operate in a highly regulated environment and the laws and regulations that govern our operations, corporate governance, executive compensation and accounting principles, or changes in them, or our failure to comply with them, could subject us to regulatory action or penalties.
Unlike larger financial institutions that are more geographically diversified, we are a regional bank concentrated in the Interstate 20 corridor between the Dallas/Fort Worth metropolitan area, East Texas, North Louisiana and Jackson, Mississippi, as well as in Houston, Texas and Oxford, Mississippi. Recently, we expanded our presence into Mobile, Alabama and Fort Walton Beach, Florida.
Unlike larger financial institutions that are more geographically diversified, we are a regional bank concentrated in the Interstate 20 corridor between the Dallas/Fort Worth metropolitan area, East Texas, North Louisiana and Jackson, Mississippi, as well as in Houston, Texas and Oxford, Mississippi. In 2024, we expanded our presence into Mobile, Alabama and Fort Walton Beach, Florida.
The existence of credit and market risk associated with our derivative instruments could adversely affect our net interest income and, therefore, could have an adverse effect on our business, financial condition and results of operations. 42 Table of Contents The fair value of our investment securities can fluctuate due to factors outside of our control.
The existence of credit and market risk associated with our derivative instruments could adversely affect our net interest income and, therefore, could have an adverse effect on our business, financial condition and results of operations. 40 Table of Contents The fair value of our investment securities can fluctuate due to factors outside of our control.
Changes in market values of investment securities classified as available for sale are impacted by higher rates and can negatively impact our other comprehensive (loss) income and equity levels through accumulated other comprehensive (loss) income, which includes net unrealized gains and losses on those securities.
Changes in market values of investment securities classified as available for sale are impacted by changes in interest rates and can negatively impact our other comprehensive (loss) income and equity levels through accumulated other comprehensive (loss) income, which includes net unrealized gains and losses on those securities.
A disaster could, therefore, result in decreased revenue and loan losses that could have an adverse effect on our business, financial condition and results of operations. 39 Table of Contents We have a continuing need for technological change, and we may not have the resources to effectively implement new technology, or we may experience operational challenges when implementing new technology.
A disaster could, therefore, result in decreased revenue and loan losses that could have an adverse effect on our business, financial condition and results of operations. We have a continuing need for technological change, and we may not have the resources to effectively implement new technology, or we may experience operational challenges when implementing new technology.
Any significant environmental liabilities could cause an adverse effect on our business, financial condition and results of operations. We may be subject to claims and litigation pertaining to intellectual property. Banking and other financial services companies, such as ours, rely on technology companies to provide information technology products and services necessary to support their day-to-day operations.
Any significant environmental liabilities could cause an adverse effect on our business, financial condition and results of operations. 41 Table of Contents We may be subject to claims and litigation pertaining to intellectual property. Banking and other financial services companies, such as ours, rely on technology companies to provide information technology products and services necessary to support their day-to-day operations.
We and certain of our directors, officers and subsidiaries are named from time to time as defendants in litigation and are the subject of investigations and other proceedings relating to our business and activities, including, during 2024 and continuing into 2025, proceedings relating to the questioned activity discussed in detail in Part II, Item 8 , Note 18 — Commitments and Contingencies under Loss Contingencies .
We and certain of our directors, officers and subsidiaries are named from time to time as defendants in litigation and are the subject of investigations and other proceedings relating to our business and activities, including, during 2024 and continuing into 2025, proceedings relating to the questioned banker activity discussed in detail in Part II, Item 8 , Note 19 — Commitments and Contingencies under Loss Contingencies .
Our financial condition and results of operations could be adversely affected if we are unsuccessful in managing the effects of changes in interest rates. Inflationary pressures and rising prices may affect our results of operations and financial condition. Inflation rose over the last several years to levels not seen for over 40 years. Inflationary pressures may continue into 2025.
Our financial condition and results of operations could be adversely affected if we are unsuccessful in managing the effects of changes in interest rates. Inflationary pressures and rising prices may affect our results of operations and financial condition. Inflation rose over the last several years to levels not seen for over 40 years. Inflationary pressures may continue in 2026.
The markets in which we operate are susceptible to hurricanes and other natural disasters, adverse weather and climate change effects, which could result in a disruption of our operations and increases in loan losses.
The markets in which we operate are susceptible to natural disasters, adverse weather and climate change effects, which could result in a disruption of our operations and increases in loan losses.
Risks Related to Our Business Current uncertain economic conditions pose challenges, and could adversely affect our business, financial condition and results of operations. We are operating in an uncertain economic environment.
Risks Related to Our Business Current uncertain economic conditions and increased geopolitical risks pose challenges, and could adversely affect our business, financial condition and results of operations. We are operating in an uncertain economic environment.
As a result, our inability to successfully manage credit risk could have an adverse effect on our business, financial condition and results of operations. Our allowance for loan credit losses may prove to be insufficient to absorb losses inherent in our loan portfolio and our earnings could decrease.
As a result, our inability to successfully manage credit risk could have an adverse effect on our business, financial condition and results of operations. 30 Table of Contents Our allowance for loan credit losses may prove to be insufficient to absorb losses inherent in our loan portfolio and our earnings could decrease.
We may experience operational challenges as we implement these new technology enhancements or products, which could result in us not fully realizing the anticipated benefits from such new technology or require us to incur significant costs to remedy any such challenges in a timely manner. These changes may be more difficult or expensive than we anticipate.
We may experience operational challenges as we implement these new technology enhancements or products, which could result in us not fully realizing the anticipated benefits from such new technology or require us to incur significant costs to remedy any such challenges in a timely manner. 38 Table of Contents These changes may be more difficult or expensive than we anticipate.
Any reduction in interchange income as a result of the loss of the exemption for small issuers under the Durbin Amendment could have a significant adverse effect on our business, financial condition and results of operations. Our interchange fees for the year ended December 31, 2024, were $8.3 million.
Any reduction in interchange income as a result of the loss of the exemption for small issuers under the Durbin Amendment could have a significant adverse effect on our business, financial condition and results of operations. Our interchange fees for the year ended December 31, 2025, were $8.5 million.
Compliance with current or future privacy, data protection and information security laws to which we are subject could result in higher compliance and technology costs and could restrict our ability to provide certain products and services, which could materially and adversely affect our profitability. 34 Table of Contents Our business is susceptible to fraud.
Compliance with current or future privacy, data protection and information security laws to which we are subject could result in higher compliance and technology costs and could restrict our ability to provide certain products and services, which could materially and adversely affect our profitability. Our business is susceptible to fraud.
The geographic concentration of our markets in Texas, Louisiana, Mississippi, and most recently into Alabama and Florida makes us more sensitive than our more geographically diversified competitors to adverse changes in the local economy.
The geographic concentration of our markets in Texas, Louisiana, Mississippi, Alabama and Florida makes us more sensitive than our more geographically diversified competitors to adverse changes in the local economy.
If the counterparty fails to perform, credit risk exists to the extent of the fair value gain in the derivative. Market risk exists to the extent that interest rates change in ways that are significantly different from what we expected when we entered into the derivative transaction.
If the counterparty fails to perform, credit risk exists to the extent the fair value gain in the derivative is not collateralized. Market risk exists to the extent that interest rates change in ways that are significantly different from what we expected when we entered into the derivative transaction.
We use other derivative financial instruments to help manage other economic risks, such as liquidity and credit risk, including exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates.
We use other derivative financial instruments to help manage other economic risks, including exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates.
Future rapid changes in interest rates, in either direction, may make it difficult for us to balance our loan and deposit portfolios, which may adversely affect our results of operations by, for example, reducing asset yields or spreads, or having other adverse impacts on our business. Decreases in interest rates could result in an acceleration of loan prepayments.
Future rapid changes in interest rates, in either direction, may make it difficult for us to balance our loan and deposit portfolios, which may adversely affect our results of operations by, for example, reducing asset yields or spreads, or having other adverse impacts on our business.
Inflation could lead to increased costs to our customers, making it more difficult for them to repay their loans or other obligations increasing our credit risk. While the Federal Reserve has cut interest rates in late 2024, current interest rates remain significantly higher than interest rates as of early 2022.
Inflation could lead to increased costs to our customers, making it more difficult for them to repay their loans or other obligations increasing our credit risk. While the Federal Reserve began cutting interest rates in late 2024, current market interest rates remain higher than interest rates as of early 2022.
The financial markets and the global economy may also be adversely affected by the current or anticipated impact of military conflict, including the ongoing wars in the Ukraine and the Middle East, which have increased volatility in commodity and energy prices, created supply chain issues and caused instability in financial markets, all of which may continue or worsen in the future.
The financial markets and the global economy may also be adversely affected by the current or anticipated impact of military conflict, including uncertainty surrounding the impact of the United States’ involvement in the Venezuelan government, the ongoing wars in the Ukraine and the Middle East, which have increased volatility in commodity and energy prices, created supply chain issues and caused instability in financial markets, all of which may continue or worsen in the future.
At December 31, 2024, 69.2% of our total loans (by dollar amount), excluding mortgage warehouse lines of credit, were made to borrowers who reside or conduct business in Texas, 18.4% attributable to Louisiana and 7.1% attributable, in total, to Mississippi, Mobile, Alabama and Fort Walton Beach, Florida and majority of our real estate loans are secured by properties located in these states.
At December 31, 2025, 64.7% of our total real estate loans (by dollar amount), excluding mortgage warehouse lines of credit, were made to borrowers who reside or conduct business in Texas, 15.4% attributable to Louisiana and 9.1% attributable, in total, to Mississippi, Mobile, Alabama and Fort Walton Beach, Florida and majority of our real estate loans are secured by properties located in these states.
Real estate values in our markets have experienced periods of fluctuation over the last several years, and the market value of real estate can fluctuate significantly in a short period of time. At December 31, 2024, $5.20 billion, or 68.6%, of our total LHFI was comprised of loans with real estate as a primary component of collateral.
Real estate values in our markets have experienced periods of fluctuation over the last several years, and the market value of real estate can fluctuate significantly in a short period of time. At December 31, 2025, $5.13 billion, or 66.9%, of our total LHFI was comprised of loans with real estate as a primary component of collateral.
At December 31, 2024, the fair value of our portfolio of available for sale investment securities was approximately $1.10 billion, which included a net unrealized loss of approximately $134.9 million, before taxes.
At December 31, 2025, the fair value of our portfolio of available for sale investment securities was approximately $1.12 billion, which included a net unrealized loss of approximately $68.9 million, before taxes.
The exemption for small issuers ceases to apply as of July 1 of the year following the calendar year in which the debit card issuer has total consolidated assets of $10 billion or more at calendar year end.
The exemption for small issuers ceases to apply as of July 1 of the year following the calendar year in which the debit card issuer has total consolidated assets of $10 billion or more at calendar year end. At December 31, 2025, we had total consolidated assets of $9.72 billion.
Our business depends on our ability to successfully measure and manage credit risk. As a lender, we are exposed to the risk that the principal of, or interest on, a loan will not be repaid timely or at all or that the value of any collateral supporting a loan will be insufficient to cover our outstanding exposure.
As a lender, we are exposed to the risk that the principal of, or interest on, a loan will not be repaid timely or at all or that the value of any collateral supporting a loan will be insufficient to cover our outstanding exposure.
The federal Bank Secrecy Act, USA Patriot Act and other laws and regulations require financial institutions, among other duties, to institute and maintain effective anti-money laundering programs and file suspicious activity and currency transaction reports as appropriate.
We face a risk of noncompliance with the Bank Secrecy Act and other anti-money laundering statutes and regulations. The federal Bank Secrecy Act, USA Patriot Act and other laws and regulations require financial institutions, among other duties, to institute and maintain effective anti-money laundering programs and file suspicious activity and currency transaction reports as appropriate.
These activities strongly influence our rate of return on certain investments, our mortgage origination pipeline, as well as our costs of funds for lending and investing, all of which may adversely impact our liquidity, results of operations, financial condition and capital position. Unstable global economic conditions may have serious adverse consequences on our business, financial condition, and operations.
These activities strongly influence our rate of return on certain investments, our mortgage origination pipeline, as well as our costs of funds for lending and investing, all of which may adversely impact our liquidity, results of operations, financial condition and capital position.
Our ability to attract and retain profitable bankers is critical to the success of our business strategy. Our ability to retain and grow our loans, deposits and fee income depends upon the business generation capabilities, reputation and relationship management skills of our bankers.
Our ability to retain and grow our loans, deposits and fee income depends upon the business generation capabilities, reputation and relationship management skills of our bankers.
While we carefully monitor internal and external developments for areas of potential reputational risk and have established governance structures to assist in evaluating such risks in our business practices and decisions, adverse reputational impacts on third parties with whom we have important relationships may also adversely impact our reputation.
Any of these developments could have an adverse effect on our business, financial condition and results of operations. 36 Table of Contents While we carefully monitor internal and external developments for areas of potential reputational risk and have established governance structures to assist in evaluating such risks in our business practices and decisions, adverse reputational impacts on third parties with whom we have important relationships may also adversely impact our reputation.
At December 31, 2024, the size of our average loan held for investment was approximately $567,242. Further, at December 31, 2024, our 20 largest borrowing relationships, excluding mortgage loans held for sale, represented 11.3% of our outstanding loan portfolio, and 10.1% of our total commitments to extend credit.
At December 31, 2025, the size of our average loan held for investment was approximately $648,000. Further, at December 31, 2025, our 20 largest borrowing relationships, excluding mortgage loans held for sale, represented 12.1% of our outstanding loan portfolio, and 10.5% of our total commitments to extend credit.
During the year ended December 31, 2024, we implemented remediation actions to address the material weakness in our internal controls and, as of December 31, 2024, this material weakness has been deemed remediated. 33 Table of Contents If additional material weaknesses in internal control over financial reporting are discovered or occur in the future, our consolidated financial statements may contain material misstatements and we could be required to revise or restate our financial results, which could materially and adversely affect our business, results of operations and financial condition, restrict our ability to access the capital markets, require us to expend significant resources to correct the material weakness, subject us to fines, penalties or judgments, harm our reputation, adversely affect the trading price of our common stock, or otherwise cause a decline in investor confidence.
If additional material weaknesses in internal control over financial reporting are discovered or occur in the future, our consolidated financial statements may contain material misstatements and we could be required to revise or restate our financial results, which could materially and adversely affect our business, results of operations and financial condition, restrict our ability to access the capital markets, require us to expend significant resources to correct the material weakness, subject us to fines, penalties or judgments, harm our reputation, adversely affect the trading price of our common stock, or otherwise cause a decline in investor confidence.
Any security breach involving the misappropriation, loss or other unauthorized disclosure of our confidential business, employee or customer information, whether originating with us, our vendors or retail businesses, could severely damage our reputation, expose us to the risks of civil litigation and liability, require the payment of regulatory fines or penalties or undertaking of costly remediation efforts with respect to third parties affected by a security breach, disrupt our operations, and have a material adverse effect on our business, financial condition and results of operations.
Any security breach involving the misappropriation, loss or other unauthorized disclosure of our confidential business, employee or customer information, whether originating with us, our vendors or retail businesses, could severely damage our reputation, expose us to the risks of civil litigation and liability, require the payment of regulatory fines or penalties or undertaking of costly remediation efforts with respect to third parties affected by a security breach, disrupt our operations, and have a material adverse effect on our business, financial condition and results of operations. 33 Table of Contents It is difficult or impossible to defend against every risk being posed by changing technologies or criminals’ intent on committing cyber-crime.
Continued increased market interest rates could also adversely affect the ability of our floating-rate borrowers to meet their higher payment obligations. If this occurred, it could cause an increase in nonperforming assets and charge offs, which could adversely affect our business.
Decreases in interest rates, such as those that occurred in 2024 and 2025, could result in an acceleration of loan prepayments. Increased market interest rates could also adversely affect the ability of our floating-rate borrowers to meet their higher payment obligations. If this occurred, it could cause an increase in nonperforming assets and charge-offs, which could adversely affect our business.
The unrealized loss negatively impacted total stockholders’ equity. Factors beyond our control can significantly influence the fair value of securities in our portfolio and can cause potential adverse changes to the fair value of these securities.
Factors beyond our control can significantly influence the fair value of securities in our portfolio and can cause potential adverse changes to the fair value of these securities.
The collateral securing such loans generally includes movable property, such as equipment and inventory, which may decline in value more rapidly than we anticipate, exposing us to increased credit risk.
Additionally, the repayment of commercial loans is subject to the ongoing business operations of the borrower. The collateral securing such loans generally includes movable property, such as equipment and inventory, which may decline in value more rapidly than we anticipate, exposing us to increased credit risk.
If general economic conditions negatively impact the markets in which we operate and small to medium-sized businesses are adversely affected or our borrowers are otherwise harmed by adverse business developments, this, in turn, could have an adverse effect on our business, financial condition and results of operations. 36 Table of Contents We face significant competition to attract and retain customers, which could impair our growth, decrease our profitability or result in loss of market share.
If general economic conditions negatively impact the markets in which we operate and small to medium-sized businesses are adversely affected or our borrowers are otherwise harmed by adverse business developments, this, in turn, could have an adverse effect on our business, financial condition and results of operations.
Moreover, although we have implemented practices, we believe will reduce the potential effects of changes in interest rates on our net interest income, these practices may not always be successful.
Moreover, the practices we have implemented that are intended to reduce the potential effects of changes in interest rates on our net interest income may not be successful.
If any of our largest borrowers become unable to repay their loan obligations as a result of economic or market conditions or personal circumstances, our nonperforming loans and our provision for loan credit losses could increase significantly, which could have an adverse effect on our business, financial condition and results of operations.
If any of our largest borrowers become unable to repay their loan obligations as a result of economic or market conditions or personal circumstances, our nonperforming loans and our provision for loan credit losses could increase significantly, which could have an adverse effect on our business, financial condition and results of operations. 32 Table of Contents If we fail to establish and maintain effective internal controls over financial reporting, our financial statements could contain a material misstatement, which could adversely affect our business and financial condition.
Treasury, the U.S. government’s decisions regarding its debt ceiling and the possibility that the U.S. could default on its debt obligations may cause further interest rate increases, disrupt access to capital markets, result in new taxes and trigger recessionary conditions. If these conditions or similar ones continue to exist or worsen, we could experience adverse effects on our financial condition.
Treasury, the U.S. government’s decisions regarding its debt ceiling and the possibility that the U.S. could default on its debt obligations may cause further interest rate increases, disrupt access to capital markets, result in new taxes and trigger recessionary conditions.
In addition, our access to deposits may be affected by the liquidity and/or cash flow needs of depositors, which may be exacerbated in an inflationary, recessionary, or elevated rate environment. 41 Table of Contents Any decline in available funding could adversely impact our ability to originate loans, invest in securities, meet our expenses, or to fulfill obligations such as repaying our borrowings or meeting deposit withdrawal demands, any of which could have a material adverse impact on our liquidity and could, in turn, have an adverse effect on our business, financial condition and results of operations.
Any decline in available funding could adversely impact our ability to originate loans, invest in securities, meet our expenses, or to fulfill obligations such as repaying our borrowings or meeting deposit withdrawal demands, any of which could have a material adverse impact on our liquidity and could, in turn, have an adverse effect on our business, financial condition and results of operations.
We could lose some of our existing customers, including groups of large customers who have relationships with each other, and we may not be successful in attracting new customers. Any of these developments could have an adverse effect on our business, financial condition and results of operations.
We could lose some of our existing customers, including groups of large customers who have relationships with each other, and we may not be successful in attracting new customers.
In the last few years, there have been an increasing number of cyber incidents and cyber criminals continue to increase their sophistication, including several well-publicized cyber-attacks that targeted other companies in the United States, including financial services companies much larger than us. These cyber incidents have been initiated from a variety of sources, including terrorist organizations and hostile foreign governments.
Our controls and protections and those of our vendors could prove inadequate. In the last few years, there have been an increasing number of cyber incidents and cyber criminals continue to increase their sophistication, including several well-publicized cyber-attacks that targeted other companies in the United States, including financial services companies much larger than us.
Such claims may increase in the future as the financial services sector becomes more reliant on information technology vendors.
Such claims may increase in the future as the financial services sector becomes more reliant on information technology vendors. The plaintiffs in these actions frequently seek injunctions and substantial damages.
If we are unable to attract and retain profitable bankers, or if our bankers fail to meet our expectations in terms of customer relationships and profitability, we may be unable to execute our business strategy, which could have an adverse effect on our business, financial condition and results of operations.
If we are unable to attract and retain profitable bankers, or if our bankers fail to meet our expectations in terms of customer relationships and profitability, we may be unable to execute our business strategy, which could have an adverse effect on our business, financial condition and results of operations. 34 Table of Contents We will be subject to heightened regulatory requirements if our total assets exceed $10 billion as of December 31 of any calendar year.
Although we believe that our estimates are reasonable, the ultimate tax outcome may differ from the amounts recorded in our financial statements and could have a material adverse effect on our financial results in the period or periods for which such determination is made.
Although we believe that our estimates are reasonable, the ultimate tax outcome may differ from the amounts recorded in our financial statements and could have a material adverse effect on our financial results in the period or periods for which such determination is made. 35 Table of Contents The small to medium-sized businesses that we lend to may have fewer resources to weather adverse business developments, which may impair our borrowers’ ability to repay loans.
These interest rate changes had a number of negative effects on our business, including reducing the value of our securities portfolio, increasing our interest rate expense, and decreasing demand for new loans, particularly residential mortgages.
These interest rate changes had a number of negative effects on our business, including reducing the value of our securities portfolio, increasing our interest rate expense, and decreasing demand for new loans, particularly residential mortgages. The Federal Reserve began reducing interest rates in 2024, but the future direction of interest rate changes remain unclear as inflation remains above target.
Such litigation is often expensive, time-consuming, disruptive to our operations and distracting to management. If we are found to infringe one or more patents or other intellectual property rights, we may be required to pay substantial damages or royalties to a third party.
If we are found to infringe one or more patents or other intellectual property rights, we may be required to pay substantial damages or royalties to a third party.
Moreover, the FDIC has the unilateral power to change deposit insurance assessment rates and the manner in which deposit insurance is calculated and also to charge special assessments to FDIC-insured institutions. The FDIC utilized these powers during the financial crisis for the purpose of restoring the reserve ratios of the Deposit Insurance Fund.
Moreover, the FDIC has the unilateral power to change deposit insurance assessment rates and the manner in which deposit insurance is calculated and also to charge special assessments to FDIC-insured institutions.
Unexpected deterioration in the credit quality of our commercial real estate loan portfolio would require us to increase our provision for loan credit losses, which would reduce our profitability, and could materially adversely affect our business, financial condition and results of operations. 32 Table of Contents A large portion of our loan portfolio is comprised of commercial loans secured by receivables, inventory, equipment or other commercial collateral, the deterioration in value of which could expose us to credit losses.
Unexpected deterioration in the credit quality of our commercial real estate loan portfolio would require us to increase our provision for loan credit losses, which would reduce our profitability, and could materially adversely affect our business, financial condition and results of operations.
If Origin Bank does not meet minimum capital requirements, it will be subject to prompt corrective action by the Federal Reserve. Prompt corrective action can include progressively more restrictive constraints on operations, management and capital distributions. Failure to exceed the capital conservation buffer will result in certain limitations on dividends, capital repurchases, and discretionary bonus payments to executive officers.
If Origin Bank does not meet minimum capital requirements, it will be subject to prompt corrective action by the Federal Reserve. Prompt corrective action can include progressively more restrictive constraints on operations, management and capital distributions. Federal Reserve regulations do not permit dividends unless our consolidated capital levels exceed certain higher levels applying capital conservation buffers.
Further, to the extent that any of the information in this report constitutes forward-looking statements, the risk factors below also are cautionary statements identifying important factors that could cause actual results to differ materially from those expressed in any forward-looking statements made by us or on our behalf. 26 Table of Contents Summary Our business is subject to a number of risks, including risks that may prevent us from achieving our business objectives or may adversely affect our business, financial condition, results of operations, cash flows and prospects.
Further, to the extent that any of the information in this report constitutes forward-looking statements, the risk factors below also are cautionary statements identifying important factors that could cause actual results to differ materially from those expressed in any forward-looking statements made by us or on our behalf.
If our customers move money out of deposits and into other investments such as money market funds, we would lose a relatively low-cost source of funds, increasing our funding costs and reducing our net interest margin, net interest income and net income.
If our customers move money out of deposits and into other investments such as money market funds, we would lose a relatively low-cost source of funds, increasing our funding costs and reducing our net interest margin, net interest income and net income. 39 Table of Contents Other primary sources of funds consist of cash flows from operations, maturities and sales of investment securities, and proceeds from the issuance and sale of our equity and debt securities to investors.
We were not required to repurchase any material amount of mortgage loans sold into the secondary market during 2024, 2023 or 2022. A lack of liquidity could impair our ability to fund operations. Liquidity is essential to our business, and we monitor our liquidity and manage our liquidity risk at the holding company and bank levels daily.
A lack of liquidity could impair our ability to fund operations. Liquidity is essential to our business, and we monitor our liquidity and manage our liquidity risk at the holding company and bank levels daily.
In response to growing signs of inflation, the Federal Reserve rapidly increased interest rates during 2022 and 2023 and took further actions to mitigate inflationary pressures.
Significant increases or decreases in market interest rates, or the perception that such a change may occur, could adversely affect our business. In response to growing signs of inflation, the Federal Reserve rapidly increased interest rates during 2022 and 2023 and took further actions to mitigate inflationary pressures.
Our business strategy includes evaluating strategic opportunities to grow through de novo branching, and we believe that banking location expansion has been meaningful to our growth since inception.
Adverse reputational impacts or events may also increase our litigation risk. We may not be able to manage the risks associated with our anticipated growth and expansion through de novo branching. Our business strategy includes evaluating strategic opportunities to grow through de novo branching, and we believe that banking location expansion has been meaningful to our growth since inception.
The plaintiffs in these actions frequently seek injunctions and substantial damages. 43 Table of Contents Regardless of the scope or validity of such patents or other intellectual property rights, or the merits of any claims by potential or actual litigants, we may have to engage in protracted litigation.
Regardless of the scope or validity of such patents or other intellectual property rights, or the merits of any claims by potential or actual litigants, we may have to engage in protracted litigation. Such litigation is often expensive, time-consuming, disruptive to our operations and distracting to management.
At December 31, 2024, our non-owner-occupied commercial real estate loans totaled $1.50 billion, or 19.8%, of our total loan portfolio.
Our loan portfolio includes non-owner-occupied commercial real estate loans for individuals and businesses for various purposes, which are secured by commercial properties. At December 31, 2025, our non-owner-occupied commercial real estate loans totaled $1.52 billion, or 19.8%, of our total loan portfolio.
While we are not currently subject to annual Dodd-Frank Act stress testing and the Comprehensive Capital Analysis and Review submissions, we currently utilize stress testing for capital, credit and liquidity purposes and anticipate that model-derived testing may become more extensively implemented by regulators in the future. 40 Table of Contents We anticipate data-based modeling will penetrate further into bank decision-making, particularly risk management efforts, as the capacities developed to meet rigorous stress testing requirements are able to be employed more widely and in differing applications.
While we are not currently subject to annual Dodd-Frank Act stress testing and the Comprehensive Capital Analysis and Review submissions, we currently utilize stress testing for capital, credit and liquidity purposes and anticipate that model-derived testing may become more extensively implemented by regulators in the future.
Our regulators may also consider our preparation for compliance with these regulatory requirements in the course of examining our operations generally or when considering any request from us or the Bank. 35 Table of Contents We will become subject to reduced debit interchange income and overdraft income and could face related adverse business consequences if our total assets grow in excess of $10 billion as of December 31 of any calendar year.
We will become subject to reduced debit interchange income and could face related adverse business consequences if our total assets grow in excess of $10 billion as of December 31 of any calendar year.
If the population, employment or income growth in one of our markets is negative or slower than projected, income levels, deposits and real estate development could be adversely impacted. Some of our larger competitors that are more geographically diverse may be better able to manage and mitigate risks posed by adverse conditions impacting only local or regional markets.
If the population, employment or income growth in one of our markets is negative or slower than projected, income levels, deposits and real estate development could be adversely impacted.
If we are required to materially increase our level of allowance for loan credit losses for any reason, such increases could have an adverse effect on our business, financial condition and results of operations. 31 Table of Contents Because a significant portion of our loan portfolio is comprised of real estate loans, negative changes in the economy affecting real estate values and liquidity could impair the value of collateral securing certain of our loans and result in loan and other losses.
If we are required to materially increase our level of allowance for loan credit losses for any reason, such increases could have an adverse effect on our business, financial condition and results of operations.
These commercial loans are typically larger in amount than loans to individuals and, therefore, have the potential for larger losses on a single loan basis. Additionally, the repayment of commercial loans is subject to the ongoing business operations of the borrower.
In general, these loans are collateralized by general business assets, including, among other things, accounts receivable, inventory and equipment and many are backed by a personal guaranty of the borrower or principal. These commercial loans are typically larger in amount than loans to individuals and, therefore, have the potential for larger losses on a single loan basis.
Our general business strategy may be adversely affected by any such economic downturn, volatile business environment, hostile third-party action or continued unpredictable and unstable market conditions. 30 Table of Contents We may not be able to adequately measure and limit our credit risk, which could lead to unexpected losses.
Our general business strategy may be adversely affected by any such economic downturn, volatile business environment, hostile third-party action, or continued unpredictable and unstable market conditions. Changes in interest rates could have an adverse impact on our results of operations and financial condition.
The small to medium-sized businesses that we lend to may have fewer resources to weather adverse business developments, which may impair our borrowers’ ability to repay loans. We focus our business development and marketing strategy primarily on small to medium-sized businesses.
We focus our business development and marketing strategy primarily on small to medium-sized businesses.
The unrealized loss resulted from the decline in fair value of our available for sale investment securities portfolio starting during the year ended December 31, 2022, and continuing through the year ended December 31, 2024, which decline was primarily due to the steepening of the short end of the yield curve as a result of the rapid increase in interest rates intended to reduce inflation.
The unrealized loss resulted from the decline in fair value of our available for sale investment securities portfolio, which primarily reflected increases in market interest rates during 2022 and early 2023.
Even if we meet minimum capital requirements, it is possible that our regulators may ask us to raise additional capital. We face a risk of noncompliance with the Bank Secrecy Act and other anti-money laundering statutes and regulations.
Recent supplements to this guidance reiterate the need for bank holding companies to consult with the Federal Reserve sufficiently in advance of the proposed payment of a dividend in certain circumstances. Even if we meet minimum capital requirements, it is possible that our regulators may ask us to raise additional capital.
Our commercial real estate loan portfolio exposes us to risks that may be greater than the risks related to our other mortgage loans. Our loan portfolio includes non-owner-occupied commercial real estate loans for individuals and businesses for various purposes, which are secured by commercial properties.
Some of our larger competitors that are more geographically diverse may be better able to manage and mitigate risks posed by adverse conditions impacting only local or regional markets. 31 Table of Contents Our commercial real estate loan portfolio exposes us to risks that may be greater than the risks related to our other mortgage loans.
Removed
Changes in interest rates could have an adverse impact on our results of operations and financial condition. Significant increases in market interest rates on loans, or the perception that an increase may occur, could adversely affect both our ability to originate new loans and our ability to grow.
Added
Summary Our business is subject to a number of risks, including risks that may prevent us from achieving our business objectives or may adversely affect our business, financial condition, results of operations, cash flows and prospects.
Removed
At December 31, 2024, approximately $2.00 billion, or 26.4%, of our total loans were commercial and industrial loans to businesses. In general, these loans are collateralized by general business assets, including, among other things, accounts receivable, inventory and equipment and many are backed by a personal guaranty of the borrower or principal.
Added
If these conditions or similar ones continue to exist or worsen, we could experience adverse effects on our financial condition. 28 Table of Contents Unstable global economic conditions may have serious adverse consequences on our business, financial condition, and operations.

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Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

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Biggest changeThe Company evaluates potential cyber risks, as appropriate, in its regular risk assessments. Additionally, we conduct vulnerability scans, and contract with third-party vendors to perform penetration tests against the Company’s network. The Company also engages expert cyber consultants, as necessary and appropriate. At Origin, we expect each employee to be responsible for the security and confidentiality of client information.
Biggest changeOur Network and Information Security teams actively monitor company networks and systems to detect suspicious or malicious events. The Company evaluates potential cyber risks, as appropriate, in its regular risk assessments. Additionally, we conduct vulnerability scans, and contract with third-party vendors to perform penetration tests against the Company’s network. The Company also engages expert cyber consultants, as necessary and appropriate.
Origin employs a number of technical controls to mitigate the risk of phishing emails. We regularly test employees to determine their susceptibility to phishing test emails. We require susceptible employees to take additional training and provide regular reports to management. We additionally maintain procedures for the safe storage and handling and secure disposal of sensitive information.
Origin employs a number of technical controls to mitigate the risk of phishing emails. We regularly test employees to determine their susceptibility to phishing test emails. We require susceptible employees to take additional training and provide regular reports to management. We additionally maintain procedures for safe storage and handling and secure disposal of sensitive information.
The ISO regularly attends Risk Committee meetings to review the Company’s material cybersecurity developments and risks, and otherwise periodically provides relevant cybersecurity updates to the Risk Committee, as appropriate.
The ISO attends Risk Committee meetings to review the Company’s material cybersecurity developments and risks, and otherwise periodically provides relevant cybersecurity updates to the Risk Committee, as appropriate.
Please see Part I, Item 1A. Risk Factors for further discussion of the risks associated with an interruption or breach in our information systems or infrastructure. 48 Table of Contents Cybersecurity Governance Our Board of Directors is responsible for overseeing our business and affairs, including risks associated with cybersecurity threats.
Please see Part I, Item 1A. Risk Factors for further discussion of the risks associated with an interruption or breach in our information systems or infrastructure. 46 Table of Contents Cybersecurity Governance Our Board of Directors is responsible for overseeing our business and affairs, including risks associated with cybersecurity threats.
In this role, the ISO manages the Company’s information security and day-to-day cybersecurity operations and supports the information security risk oversight responsibilities of the Board and its committees. The ISO is a member of our Corporate Operations group and reports to our Chief Risk Officer, who in turn reports to our President and CEO.
In this role, the ISO manages the Company’s information security and day-to-day cybersecurity operations and supports the information security risk oversight responsibilities of the Board and its committees. The ISO is a member of our Risk Management group and reports to our Chief Risk Officer, who in turn reports to our President and CEO.
Before engaging third-party service providers, we perform due diligence in order to identify and evaluate their cyber risks. This process is led by the Operational Risk Management team and includes participation of dedicated information security resources. Risk assessments are performed using Service Organization Controls (“SOC”) reports and other tools.
Before engaging third-party service providers, we perform due diligence in order to identify and evaluate their cyber risks. This process is led by the Operational Risk Management team and includes participation of our Information Technology and Information Security teams. Risk assessments are performed using Service Organization Controls (“SOC”) reports and other tools.
Assessing, identifying and managing cybersecurity related risks are integrated into our overall enterprise risk management process. 47 Table of Contents Cybersecurity Risk Management and Strategy Origin follows FFIEC guidance in protecting its network and information assets with industry-tested security products and processes. Our Network and Information Security teams actively monitor company networks and systems to detect suspicious or malicious events.
Assessing, identifying, mitigating, and managing cybersecurity related risks are integrated into our overall enterprise risk management process. 45 Table of Contents Cybersecurity Risk Management and Strategy Origin follows FFIEC guidance in protecting its network and information assets with industry-tested security products and processes.
We communicate this responsibility to employees upon hiring, and regularly throughout their employment. We require each employee to complete training to protect the confidentiality of client information at the time of hire and during each year of employment. Employees must successfully pass a test to demonstrate understanding of these requirements and provide acknowledgement of their responsibilities.
At Origin, we expect each employee to be responsible for the security and confidentiality of client information. We communicate this responsibility to employees upon hiring, and regularly throughout their employment. We require each employee to complete training to protect the confidentiality of client information at the time of hire and during each year of employment.
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Employees must successfully pass a test to demonstrate understanding of these requirements and provide acknowledgement of their responsibilities.

Item 2. Properties

Properties — owned and leased real estate

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Biggest changeWe expect to close six of these banking centers at the end of February 2025, four in the Dallas-Fort Worth market, and one each in the Louisiana and Mississippi markets. At December 31, 2024, Origin Bank owned its main office building and 30 of its banking centers, as well as a controlling interest in its operations center.
Biggest changeAt December 31, 2025, Origin Bank owned its main office building and 29 of its banking centers, as well as a controlling interest in its operations center. The remaining facilities were occupied under lease agreements, the terms of which range from month to month to 28 years.
Item 2. Properties At December 31, 2024, our executive offices and those of Origin Bank were located at 500 South Service Road East, Ruston, Louisiana 71270 and we operated through over 60 locations in Texas, Louisiana, Mississippi, South Alabama, and the Florida Panhandle, including loan production offices.
Item 2. Properties At December 31, 2025, our executive offices and those of Origin Bank were located at 500 South Service Road East, Ruston, Louisiana 71270 and we operated through over 56 locations in Texas, Louisiana, Mississippi, South Alabama, and the Florida Panhandle, including loan production offices.
At December 31, 2024, we had 18 banking centers in North Louisiana, 15 banking centers in the Dallas-Fort Worth metroplex area, nine banking centers in East Texas, nine banking centers in the Houston metroplex, seven banking centers in the Ridgeland, Mississippi area, and one banking center each in South Alabama and the Florida Panhandle.
At December 31, 2025, we had 17 banking centers in North Louisiana, 11 banking centers in the Dallas-Fort Worth metroplex area, nine banking centers in East Texas, 11 banking centers in the Houston metroplex, six banking centers in the Ridgeland, Mississippi area, and one banking center each in South Alabama and the Florida Panhandle.
The remaining facilities were occupied under lease agreements, the terms of which range from month to month to 29 years. We believe that our banking and other offices are in good condition and are suitable and adequate to our needs. At December 31, 2024, our insurance holdings operated through 12 leased offices primarily located in Louisiana.
We believe that our banking and other offices are in good condition and are suitable and adequate to our needs. At December 31, 2025, our insurance agency operated through 13 office locations primarily located in Louisiana.
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One location is owned directly by the insurance agency, five are shared locations owned or leased by Origin, and seven are leased by the insurance agency.

Item 3. Legal Proceedings

Legal Proceedings — active lawsuits and investigations

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Biggest changeMine Safety Disclosures Not applicable. 49 Table of Contents PART II
Biggest changeMine Safety Disclosures Not applicable 47 Table of Contents PART II

Item 4. Mine Safety Disclosures

Mine Safety Disclosures — required of mining issuers

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Biggest changeItem 4. Mine Safety Disclosures 49 PART II 50 Item 5. Market for Registrants Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 50 Item 6. [Reserved] 51 Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations 52 Item 7A. Quantitative and Qualitative Disclosures about Market Risk 75 Item 8.
Biggest changeItem 4. Mine Safety Disclosures 47 PART II 48 Item 5. Market for Registrants Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 48 Item 6. [Reserved] 50 Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations 51 Item 7A. Quantitative and Qualitative Disclosures about Market Risk 74 Item 8.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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Biggest changeItem 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities Our common stock is listed on the New York Stock Exchange under the symbol “OBK”. Our common stock began trading on the Nasdaq Global Select Market on May 9, 2018. Prior to that date, there was no public trading market for our common stock.
Biggest changeItem 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities Our common stock is listed on the New York Stock Exchange under the symbol “OBK”.
Our stock was previously traded on Nasdaq under the symbol “OBNK” and is currently listed on the New York Stock Exchange under the symbol “OBK”. The following reflects index values as of close of trading, assumes $100.00 invested on December 31, 2019, in our common stock, and the Indices and assumes the reinvestment of dividends, if any.
Our stock was previously traded on Nasdaq under the symbol “OBNK” and is currently listed on the New York Stock Exchange under the symbol “OBK”. The following reflects index values as of close of trading, assumes $100.00 invested on December 31, 2020, in our common stock, and the Indices and assumes the reinvestment of dividends, if any.
Business - Regulation and Supervision” above and see Note 17 — Capital and Regulatory Matters contained in Part II, Item 8 of this report. Equity Compensation Plans See “Item 12.
Business - Regulation and Supervision” above and see Note 18 — Capital and Regulatory Matters contained in Part II, Item 8 of this report. Equity Compensation Plans See “Item 12.
Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters”. 50 Table of Contents Stock Performance Graph The following graph compares the cumulative total stockholder return on our common stock to the cumulative total stockholder return for the Nasdaq Composite Index and the Nasdaq OMX ABA Community Bank TR index (collectively the “Indices”) for the period beginning on December 31, 2019, through December 31, 2024.
Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters”. 48 Table of Contents Stock Performance Graph The following graph compares the cumulative total stockholder return on our common stock to the cumulative total stockholder return for the Nasdaq Composite Index and the Nasdaq OMX ABA Community Bank TR index (collectively the “Indices”) for the period beginning on December 31, 2020, through December 31, 2025.
At February 15, 2025, there were approximately 9,389 holders of record of our common stock as reported by our transfer agent. We intend to pay quarterly cash dividends on our common stock, subject to approval by our board of directors. Although we expect to pay dividends according to our dividend policy, we may elect not to pay dividends.
At February 17, 2026, there were approximately 15,584 holders of record of our common stock as reported by our transfer agent. We intend to pay quarterly cash dividends on our common stock, subject to approval by our board of directors. Although we expect to pay dividends according to our dividend policy, we may elect not to pay dividends.
The stock repurchase program is intended to expire in three years but may be terminated or amended by the Board of Directors at any time. The stock repurchase program does not obligate the Company to purchase any shares at any time. At December 31, 2024, there remained $50.0 million of capacity under the stock repurchase program.
The stock repurchase program is intended to expire in three years but may be terminated or amended by the Board of Directors at any time. The stock repurchase program does not obligate the Company to purchase any shares at any time. At December 31, 2025, there remained approximately $38.6 million of capacity under the stock repurchase program.
After careful consideration of industry, average asset size, market capitalization, constituents within the indices, and overall comparability to our compensation peer group, we have determined the most comparable index is represented by the Nasdaq OMX ABA Community Bank TR Index. 12/31/2019 12/31/2020 12/31/2021 12/31/2022 12/31/2023 12/31/2024 Origin Bancorp, Inc. $ 100.00 $ 74.55 $ 116.63 $ 101.12 $ 99.86 $ 95.23 Nasdaq Composite Index 100.00 143.64 174.36 116.65 167.30 215.22 Nasdaq OMX ABA Community Bank TR Index 100.00 89.64 121.03 111.12 108.99 125.60 Stock Repurchases In July 2022, the Board of Directors of the Company authorized a stock repurchase program pursuant to which the Company may, from time to time, purchase up to $50 million of its outstanding common stock.
After careful consideration of industry, average asset size, market capitalization, constituents within the indices, and overall comparability to our compensation peer group, we have determined the most comparable index is represented by the Nasdaq OMX ABA Community Bank TR Index. 12/31/2020 12/31/2021 12/31/2022 12/31/2023 12/31/2024 12/31/2025 Origin Bancorp, Inc. $ 100.00 $ 156.44 $ 135.63 $ 133.95 $ 127.74 $ 146.71 Nasdaq Composite Index 100.00 121.39 81.21 116.47 149.83 180.33 Nasdaq OMX ABA Community Bank TR Index 100.00 135.01 123.95 121.58 140.11 147.23 49 Table of Contents Stock Repurchases In July 2022, the Board of Directors of the Company authorized a stock repurchase program pursuant to which the Company was authorized to purchase up to $50.0 million of its outstanding common stock.
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There were no stock repurchases during the year ended December 31, 2024.
Added
Our common stock began trading on the Nasdaq Global Select Market on May 9, 2018, and we transferred the listing of our common stock to the New York Stock Exchange on May 22, 2023. Prior to May 9, 2018, there was no public trading market for our common stock.
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The July 2022 repurchase plan expired in July 2025 with the Company having repurchased a total of 136,399 shares of its common stock at an average price per share of $32.13, for an aggregate purchase price of $4.4 million, including broker commissions and applicable excise taxes.
Added
All the common stock repurchases executed under the July 2022 repurchase plan were completed during the second quarter of 2025. In July 2025, the Board of Directors of the Company authorized a stock repurchase program pursuant to which the Company may, from time to time, purchase up to $50.0 million of its outstanding common stock.
Added
The following table summarizes the Company’s stock repurchase activity for the year ended December 31, 2025.
Added
(Dollars in thousands, except per share amounts) Period Total Number of Shares Purchased Average Price Paid per Share (1) Total Number of Shares Purchased as Part of Publicly Announced Plans Approximate Dollar Value of Shares That May Yet Be Purchased Under the Plan at the End of the Period (1) Total first quarter 2025 — $ — — $ — Total second quarter 2025 (2) 136,399 32.13 136,399 45,618 Total third quarter 2025 265,248 35.85 401,647 40,490 October 1 - 31, 2025 — — — — November 1 - 30, 2025 — — — — December 1 - 31, 2025 49,358 38.77 451,005 38,576 Total fourth quarter 2025 49,358 38.77 451,005 38,576 Total 2025 451,005 35.05 451,005 38,576 ______________________ (1) Includes broker commissions and applicable excise taxes.
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(2) Represents shares purchased under the July 2022 stock repurchase program and the approximate remaining dollar value that expired in July 2025.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

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Biggest changeThe increase in contingency income was mainly due to new commercial accounts combined with lower claims for catastrophic events experienced by our insurance agency counterparties during the year ended December 31, 2024, compared to the year ended December 31, 2023. 59 Table of Contents Noninterest Expense The following table presents the significant components of noninterest expense for the periods indicated: (Dollars in thousands) Years Ended December 31, 2024 vs. 2023 2023 vs. 2022 Noninterest expense: 2024 2023 2022 $ Change % Change $ Change % Change Salaries and employee benefits $ 148,823 $ 138,819 $ 118,971 $ 10,004 7.2 % $ 19,848 16.7 % Occupancy and equipment, net 27,865 26,783 20,203 1,082 4.0 6,580 32.6 Data processing 13,497 11,590 10,456 1,907 16.5 1,134 10.8 Office and operations 11,441 10,834 8,120 607 5.6 2,714 33.4 Intangible asset amortization 7,979 9,628 5,488 (1,649) (17.1) 4,140 75.4 Regulatory assessments 6,902 6,456 3,547 446 6.9 2,909 82.0 Advertising and marketing 6,150 5,986 4,431 164 2.7 1,555 35.1 Professional services 6,610 5,931 3,813 679 11.4 2,118 55.5 Loan-related expenses 3,164 5,035 6,097 (1,871) (37.2) (1,062) (17.4) Electronic banking 5,162 4,712 3,958 450 9.6 754 19.1 Franchise tax expense 2,897 3,334 3,582 (437) (13.1) (248) (6.9) Merger-related expense — — 6,171 — N/A (6,171) (100.0) Other expense 10,548 6,108 5,582 4,440 72.7 526 9.4 Total noninterest expense $ 251,038 $ 235,216 $ 200,419 $ 15,822 6.7 $ 34,797 17.4 ____________________________ N/A = Not applicable.
Biggest changeThe decrease was partially offset by income of $3.2 million from the Argent investment, which was accounted for under the equity method beginning July 1, 2025, following an increase in ownership. 58 Table of Contents Noninterest Expense The following table presents the significant components of noninterest expense for the periods indicated: (Dollars in thousands) Years Ended December 31, 2025 vs. 2024 2024 vs. 2023 Noninterest expense: 2025 2024 2023 $ Change % Change $ Change % Change Salaries and employee benefits $ 150,889 $ 148,823 $ 138,819 $ 2,066 1.4 % $ 10,004 7.2 % Occupancy and equipment, net 29,771 27,865 26,783 1,906 6.8 1,082 4.0 Data processing 13,587 13,497 11,590 90 0.7 1,907 16.5 Office and operations 12,736 11,441 10,834 1,295 11.3 607 5.6 Intangible asset amortization 6,611 7,979 9,628 (1,368) (17.1) (1,649) (17.1) Regulatory assessments 5,534 6,902 6,456 (1,368) (19.8) 446 6.9 Advertising and marketing 5,561 6,150 5,986 (589) (9.6) 164 2.7 Professional services 6,633 6,610 5,931 23 0.3 679 11.4 Electronic banking 5,728 5,162 4,712 566 11.0 450 9.6 Loan-related expenses 3,034 3,164 5,035 (130) (4.1) (1,871) (37.2) Bank share tax expense 2,518 2,897 3,334 (379) (13.1) (437) (13.1) Other expense 6,300 10,548 6,108 (4,248) (40.3) 4,440 72.7 Total noninterest expense $ 248,902 $ 251,038 $ 235,216 $ (2,136) (0.9) $ 15,822 6.7 Noninterest expense for the year ended December 31, 2025, decreased by $2.1 million, or 0.9%, to $248.9 million, compared to $251.0 million for the year ended December 31, 2024, primarily due to a $4.2 million decrease in other expense and $1.4 million decreases in both regulatory assessments and intangible asset amortization.
Net interest income is the difference between interest income on interest-earning assets, such as loans, securities and interest-bearing cash, and interest expense on interest-bearing liabilities, such as deposits and borrowings. Net interest spread is the average yield on interest-earning assets minus the average rate on interest-bearing liabilities.
Net interest income is the difference between interest income on interest-earning assets, such as loans, securities and interest-earning cash, and interest expense on interest-bearing liabilities, such as deposits and borrowings. Net interest spread is the average yield on interest-earning assets minus the average rate on interest-bearing liabilities.
Factors that could cause such differences are discussed in the sections titled “Cautionary Note Regarding Forward-Looking Statements” and “Item 1A. Risk Factors.” We assume no obligation to update any of these forward-looking statements. Discussion in this Form 10-K includes results of operations and financial condition for 2024 and 2023 and year-over-year comparisons between 2024 and 2023.
Factors that could cause such differences are discussed in the sections titled “Cautionary Note Regarding Forward-Looking Statements” and “Item 1A. Risk Factors.” We assume no obligation to update any of these forward-looking statements. Discussion in this Form 10-K includes results of operations and financial condition for 2025 and 2024 and year-over-year comparisons between 2025 and 2024.
The Federal Reserve Board (“FRB”) sets various benchmark rates, including the federal funds rate, and thereby influences the general market rates of interest, including the loan and deposit rates offered by financial institutions.
The Federal Reserve Board sets various benchmark rates, including the federal funds rate, and thereby influences the general market rates of interest, including the loan and deposit rates offered by financial institutions.
We typically rely on such funding when the cost of such borrowings compares favorably to the rates that we would be required to pay for other funding sources, including certain deposits. See Note 11 — Borrowings to our consolidated financial statements contained in Part II, Item 8 of this report for additional borrowing capacity and outstanding advances at the FHLB.
We typically rely on such funding when the cost of such borrowings compares favorably to the rates that we would be required to pay for other funding sources, including certain deposits. See Note 12 — Borrowings to our consolidated financial statements contained in Part II, Item 8 of this report for additional borrowing capacity and outstanding advances at the FHLB.
This adjustment also includes income tax credits received on Qualified School Construction Bonds and income from tax-exempt investments, and tax credits were computed using a federal income tax rate of 21%. 56 Table of Contents Rate/Volume Analysis The following tables present the dollar amount of changes in interest income and interest expense for major components of interest-earning assets and interest-bearing liabilities.
This adjustment also includes income tax credits received on Qualified School Construction Bonds and income from tax-exempt investments, and tax credits were computed using a federal income tax rate of 21%. 55 Table of Contents Rate/Volume Analysis The following tables present the dollar amount of changes in interest income and interest expense for major components of interest-earning assets and interest-bearing liabilities.
Interest rates for FHLB long-term advances outstanding at December 31, 2024 and 2023, ranged from 1.99% to 4.57% and were subject to restrictions or penalties in the event of prepayment. Overnight repurchase agreements with depositors consist of obligations of ours to depositors and mature on a daily basis.
Interest rates for FHLB long-term advances outstanding at December 31, 2025 and 2024, ranged from 1.99% to 4.57% and were subject to restrictions or penalties in the event of prepayment. Overnight repurchase agreements with depositors consist of obligations of ours to depositors and mature on a daily basis.
At December 31, 2024 and 2023, we and the Bank were in compliance with all applicable regulatory capital requirements, and the Bank was classified as “well capitalized” for purposes of the prompt corrective action regulations of the Federal Reserve. As we deploy capital and continue to grow operations, regulatory capital levels may decrease depending on the level of earnings.
At December 31, 2025 and 2024, we and the Bank were in compliance with all applicable regulatory capital requirements, and the Bank was classified as “well capitalized” for purposes of the prompt corrective action regulations of the Federal Reserve. As we deploy capital and continue to grow operations, regulatory capital levels may decrease depending on the level of earnings.
The Company, which is a separate legal entity apart from the Bank, must provide for its own liquidity, including the funding of the payment of any dividends that may be declared for our common stockholders and interest and principal on any outstanding debt or trust preferred securities incurred by the Company.
The Company, which is a separate legal entity apart from the Bank, must provide for its own liquidity, including the funding of the payment of any dividends that may be declared for our common stockholders and interest and principal on any outstanding indebtedness or trust preferred securities incurred by the Company.
Interest is charged at the prevailing market rate on federal funds purchased and FHLB advances. Additionally, we had the ability to borrow at the Federal Reserve discount window using our commercial and industrial loans as collateral. There were no borrowings against this line at December 31, 2024.
Interest is charged at the prevailing market rate on federal funds purchased and FHLB advances. Additionally, we had the ability to borrow at the Federal Reserve discount window using our commercial and industrial loans as collateral. There were no borrowings against this line at December 31, 2025.
These commitments are discussed in more detail in Note 18 — Commitments and Contingencies to our consolidated financial statements contained in Part II, Item 8 of this report. Stockholders’ Equity Stockholders’ equity provides a source of permanent funding, allows for future growth and provides a degree of protection to withstand unforeseen adverse developments.
These commitments are discussed in more detail in Note 19 — Commitments and Contingencies to our consolidated financial statements contained in Part II, Item 8 of this report. Stockholders’ Equity Stockholders’ equity provides a source of permanent funding, allows for future growth and provides a degree of protection to withstand unforeseen adverse developments.
From and including November 1, 2025, to but excluding the maturity date or earlier redemption date, the 4.50% Notes bear a floating interest rate expected to equal the three-month term Secured Overnight Financing Rate plus 432 basis points, payable quarterly in arrears.
From and including November 1, 2025, to but excluding the maturity date or earlier redemption date, the 4.50% Notes bore a floating interest rate expected to equal the three-month term Secured Overnight Financing Rate plus 432 basis points, payable quarterly in arrears.
This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. Credit losses are charged against the ALCL when management believes the loss is confirmed. 52 Table of Contents Loan Acquisition Accounting.
This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. Credit losses are charged against the ALCL when management believes the loss is confirmed. 51 Table of Contents Loan Acquisition Accounting.
We evaluate LHFI on a pool basis with pools of loans characterized by loan type, collateral, industry, internal credit risk rating and FICO score. We applied a probability of default, loss given default loss methodology to the loan pools at December 31, 2024.
We evaluate LHFI on a pool basis with pools of loans characterized by loan type, collateral, industry, internal credit risk rating and FICO score. We applied a probability of default, loss given default loss methodology to the loan pools at December 31, 2025.
The Company evaluates acquired loans for deterioration in credit quality based on any of, but not limited to, the following: (1) nonaccrual status; (2) borrowers are experiencing financial difficulty which results in modification to the loan terms; (3) risk ratings of special mention, substandard or doubtful; (4) watchlist credits; and (5) delinquency status, including loans that are current on merger/acquisition date, but had previously been 60 days delinquent twice.
We evaluate acquired loans for deterioration in credit quality based on any of, but not limited to, the following: (1) nonaccrual status; (2) borrowers are experiencing financial difficulty which results in modification to the loan terms; (3) risk ratings of special mention, substandard or doubtful; (4) watchlist credits; and (5) delinquency status, including loans that are current on merger/acquisition date, but had previously been 60 days delinquent twice.
Origin Bank elected to redeem the 4.25% Notes on February 15, 2025, as permitted under the terms of the 4.25% Notes. In October 2020, the Company completed of an offering of $80.0 million in aggregate principal amount of 4.50% fixed-to-floating rate subordinated notes due 2030 (the “4.50% Notes”).
Origin Bank elected to redeem the 4.25% Notes on February 15, 2025, as permitted under the terms of the 4.25% Notes. 71 Table of Contents In October 2020, the Company completed of an offering of $80.0 million in aggregate principal amount of 4.50% fixed-to-floating rate subordinated notes due 2030 (the “4.50% Notes”).
Our available for sale portfolio totaled $1.10 billion at December 31, 2024, which represented 98.4% of our total security portfolio and is comprised of 53.0% mortgage-backed, 23.2% municipal, 1.3% treasury/agency, 15.4% collateralized mortgage obligations and 7.1% corporate/asset-backed securities.
Our available for sale portfolio totaled $1.10 billion at December 31, 2024, which represented 98.4% of our total security portfolio, and was comprised of 53.0% mortgage-backed, 23.2% municipal, 15.4% collateralized mortgage obligations, 7.1% corporate and 1.3% treasury/agency securities.
The following table presents our regulatory capital ratios, as well as those of the Bank, at the dates indicated: (Dollars in thousands) December 31, 2024 December 31, 2023 Origin Bancorp, Inc.
The following table presents our regulatory capital ratios, as well as those of the Bank, at the dates indicated: (Dollars in thousands) December 31, 2025 December 31, 2024 Origin Bancorp, Inc.
We also had unsecured federal funds lines of credit available to us, with no amounts outstanding at either December 31, 2024 or 2023. These lines of credit primarily provide short-term liquidity and in order to ensure availability of these funds, we test these lines of credit at least annually.
We also had unsecured federal funds lines of credit available to us, with no amounts outstanding at either December 31, 2025 or 2024. These lines of credit primarily provide short-term liquidity and, in order to ensure the availability of these funds, we test these lines of credit at least annually.
Securities in our investment portfolio are also used to secure certain deposit types, such as deposits from state and local municipalities, and can be pledged as collateral for other borrowing sources. Other sources available for meeting liquidity needs include long- and short-term advances from the FHLB, and federal funds lines of credit.
Securities in our investment portfolio are also used to secure certain deposit types, such as deposits from state and local municipalities, and can be pledged as collateral for other borrowing sources. 72 Table of Contents Other sources available for meeting liquidity needs include long- and short-term advances from the FHLB, and unsecured federal funds lines of credit.
Loans classified as loss are charged-off and we have low expectations for the recovery of any payments in respect to loans rated as loss. Information regarding the internal risk ratings of our loans at December 31, 2024, is included in Note 4 — Loans to our consolidated financial statements contained in Part II, Item 8 of this report.
Loans classified as loss are charged-off and we have low expectations for the recovery of any payments in respect to loans rated as loss. Information regarding the internal risk ratings of our loans at December 31, 2025, is included in Note 5 — Loans to our consolidated financial statements contained in Part II, Item 8 of this report.
For discussion on results of operations and financial condition pertaining to 2023 and 2022 and year-over-year comparisons between 2023 and 2022, please refer to “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Part II, Item 7 of our Annual Report on Form 10-K for the year ended December 31, 2023, filed with the SEC on February 28, 2024.
For discussion on results of operations and financial condition pertaining to 2024 and 2023 and year-over-year comparisons between 2024 and 2023, please refer to “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Part II, Item 7 of our Annual Report on Form 10-K for the year ended December 31, 2024, filed with the SEC on February 27, 2025.
Additionally, we do not hold any Fannie Mae or Freddie Mac preferred stock, collateralized debt obligations, structured investment vehicles or second lien elements in the investment portfolio, nor does the investment portfolio contain any securities that are directly backed by subprime or Alt-A mortgages. 69 Table of Contents Securities Carried at Fair Value through Income At December 31, 2024 and 2023, we held one fixed rate community investment bond of $6.5 million and $6.8 million, respectively.
Additionally, we do not hold any Fannie Mae or Freddie Mac preferred stock, collateralized debt obligations, structured investment vehicles or second lien elements in the investment portfolio, nor does the investment portfolio contain any securities that are directly backed by subprime or Alt-A mortgages. 68 Table of Contents Securities Carried at Fair Value through Income At December 31, 2025 and 2024, we held one fixed rate community investment bond of $6.2 million and $6.5 million, respectively.
The 4.50% Notes bear a fixed interest rate of 4.50%, payable semi-annually in arrears, to but excluding November 1, 2025.
The 4.50% Notes bore a fixed interest rate of 4.50%, payable semi-annually in arrears, to but excluding November 1, 2025.
The securities portfolio had a weighted average effective duration of 4.46 years at December 31, 2024, compared to 4.28 years at December 31, 2023. For additional information regarding our securities portfolio, please see Note 3 — Securities to our consolidated financial statements contained in Part II, Item 8 of this report.
The securities portfolio had a weighted average effective duration of 4.15 years at December 31, 2025, compared to 4.46 years at December 31, 2024. For additional information regarding our securities portfolio, please see Note 3 — Securities to our consolidated financial statements contained in Part II, Item 8 of this report.
For information regarding our junior subordinated debentures underlying the issuance of trust preferred securities, please see Note 11 — Borrowings in the notes to our consolidated financial statements contained in Part II, Item 8 of this report.
For information regarding our junior subordinated indebtedness underlying the issuance of trust preferred securities, please see Note 12 — Borrowings in the notes to our consolidated financial statements contained in Part II, Item 8 of this report.
There was no impact to our financial condition or result of operations as a result of this tax. 74 Table of Contents Regulatory Capital Requirements Together with the Bank, we are subject to various regulatory capital requirements administered by federal banking agencies.
There was no impact to our financial condition or result of operations as a result of this tax in 2024. Regulatory Capital Requirements Together with the Bank, we are subject to various regulatory capital requirements administered by federal banking agencies.
Year Ended December 31, 2023 (Dollars in thousands) Interest-earning assets Increase (Decrease) due to Change in Loans: Volume Yield/Rate Total Change Commercial real estate $ 4,567 $ 6,823 $ 11,390 Construction/land/land development 1,419 2,861 4,280 Residential real estate 8,569 8,199 16,768 Commercial and industrial 2,525 5,501 8,026 Mortgage warehouse lines of credit 7,288 2,823 10,111 Consumer (130) 31 (99) Loans held for sale (228) 218 (10) Loans receivable 24,010 26,456 50,466 Investment securities-taxable (6,121) 1,081 (5,040) Investment securities-non-taxable (1,604) 178 (1,426) Non-marketable equity securities held in other financial institutions (270) (721) (991) Interest-earning deposits in banks (1,986) 171 (1,815) Total interest-earning assets 14,029 27,165 41,194 Interest-bearing liabilities Savings and interest-bearing transaction accounts 13,408 33,888 47,296 Time deposits 1,723 9,397 11,120 FHLB advances & other borrowings (15,457) (199) (15,656) Subordinated indebtedness (1,915) (460) (2,375) Total interest-bearing liabilities (2,241) 42,626 40,385 Net interest income $ 16,270 $ (15,461) $ 809 57 Table of Contents Year Ended December 31, 2023 vs.
Year Ended December 31, 2023 (Dollars in thousands) Interest-earning assets Increase (Decrease) due to Change in Loans: Volume Yield/Rate Total Change Commercial real estate $ 4,567 $ 6,823 $ 11,390 Construction/land/land development 1,419 2,861 4,280 Residential real estate 8,569 8,199 16,768 Commercial and industrial 2,525 5,501 8,026 Mortgage warehouse lines of credit 7,288 2,823 10,111 Consumer (130) 31 (99) Loans held for sale (228) 218 (10) Loans receivable 24,010 26,456 50,466 Investment securities-taxable (6,121) 1,081 (5,040) Investment securities-non-taxable (1,604) 178 (1,426) Non-marketable equity securities held in other financial institutions (270) (721) (991) Interest-earning deposits in banks (1,986) 171 (1,815) Total interest-earning assets 14,029 27,165 41,194 Interest-bearing liabilities Savings and interest-bearing transaction accounts 13,408 33,888 47,296 Time deposits 1,723 9,397 11,120 FHLB advances & other borrowings (15,457) (199) (15,656) Subordinated indebtedness (1,915) (460) (2,375) Total interest-bearing liabilities (2,241) 42,626 40,385 Net interest income $ 16,270 $ (15,461) $ 809 Provision for Credit Losses We recorded a provision expense of $46.3 million for the year ended December 31, 2025, a $38.8 million increase from $7.4 million for the year ended December 31, 2024, primarily driven by a $36.6 million increase in the provision for loan credit losses.
The table below shows the liquidity measures for the Company at the dates indicated: (Dollars in thousands) December 31, 2024 December 31, 2023 Available cash balances at the holding company (unconsolidated) $ 47,876 $ 87,698 Cash and liquid securities as a percentage of total assets 10.6 % 10.9 % There are regulatory restrictions on the ability of the Bank to pay dividends under federal and state laws, regulations and policies.
The table below shows the liquidity measures for the Company at the dates indicated: (Dollars in thousands) December 31, 2025 December 31, 2024 Available cash balances at the holding company (unconsolidated) $ 32,731 $ 47,876 Cash and liquid securities as a percentage of total assets 8.4 % 10.6 % There are regulatory restrictions on the ability of the Bank to pay dividends under federal and state laws, regulations and policies.
The net amounts available under our borrowing capacity from the FHLB at December 31, 2024 and 2023, were $2.15 billion and $2.01 billion, respectively.
The net amounts available under our borrowing capacity from the FHLB at December 31, 2025 and 2024, were $2.39 billion and $2.15 billion, respectively.
We may also use the Federal Reserve discount window as a source of short-term funding. 73 Table of Contents Core deposits, which are total deposits excluding time deposits greater than $250,000 and brokered deposits, are a major source of funds used to meet cash flow needs.
We may also use the Federal Reserve discount window as a source of short-term funding. Core deposits, which are total deposits excluding time deposits greater than $250,000, brokered, and Certificate of Deposit Account Registry Service deposits, are a major source of funds used to meet cash flow needs.
Additionally, at December 31, 2024 and 2023, we had the ability to borrow $1.33 billion and $1.42 billion from the discount window at the Federal Reserve Bank of Dallas (“FRBD”), with $1.57 billion and $1.69 billion in commercial and industrial loans pledged as collateral, respectively. There were no borrowings against this line at both December 31, 2024 and 2023.
Additionally, at December 31, 2025 and 2024, we had the ability to borrow $1.25 billion and $1.33 billion from the discount window at the Federal Reserve Bank of Dallas (“FRBD”), with $1.41 billion and $1.57 billion in commercial and industrial loans pledged as collateral, respectively. There were no borrowings against this line at either December 31, 2025 or 2024.
These obligations to depositors carried a daily average interest rate of 2.62% and 2.21% for the years ended December 31, 2024, and 2023, respectively. At December 31, 2024, we held 37 unfunded letters of credit from the FHLB totaling $709.2 million with expiration dates ranging from January 2, 2025, to September 22, 2027.
These obligations to depositors carried a daily average interest rate of 1.67% and 2.62% for the years ended December 31, 2025, and 2024, respectively. At December 31, 2025, we held 44 unfunded letters of credit from the FHLB totaling $598.3 million with expiration dates ranging from January 2, 2026, to September 22, 2027.
As a result, we replaced securities with a total book value of $188.2 million and a weighted average yield of 1.51%, with new securities totaling $173.7 million with a weighted average yield of 5.22%, realizing a loss of $14.6 million.
During the fourth quarter of 2024, we replaced securities with a total book value of $188.2 million and a weighted average yield of 1.51% with new securities totaling $173.7 million with a weighted average yield of 5.22%, realizing a loss of $14.6 million.
Total LHFI at December 31, 2024, excluding mortgage warehouse lines of credit, were $7.22 billion, reflecting a decrease of $106.3 million, or 1.5%, compared to December 31, 2023. A significant portion, 32.7%, of our LHFI portfolio at December 31, 2024, consisted of CRE loans secured by real estate properties.
Total LHFI at December 31, 2025, excluding mortgage warehouse lines of credit, were $7.14 billion, reflecting a decrease of $82.5 million, or 1.1%, compared to December 31, 2024. A significant portion, 32.9%, of our LHFI portfolio at December 31, 2025, consisted of commercial real estate loans secured by real estate properties.
All average balances are daily average balances. (2) In order to present pre-tax income and resulting yields on tax-exempt investments comparable to those on taxable investments, a tax-equivalent adjustment has been computed.
All average balances are daily average balances. (2) Yields/Rates are calculated on an actual/actual day count basis. (3) In order to present pre-tax income and resulting yields on tax-exempt investments comparable to those on taxable investments, a tax-equivalent adjustment has been computed.
For further discussion of the valuation components and classification of investment securities, see Note 1 — Significant Accounting Policies to our consolidated financial statements contained in Part II, Item 8 of this report. Our securities portfolio totaled $1.12 billion at December 31, 2024, representing a decrease of $151.9 million, or 11.9%, from $1.27 billion at December 31, 2023.
For further discussion of the valuation components and classification of investment securities, see Note 1 — Significant Accounting Policies to our consolidated financial statements contained in Part II, Item 8 of this report. Our securities portfolio totaled $1.13 billion at December 31, 2025, representing an increase of $13.8 million, or 1.2%, from $1.12 billion at December 31, 2024.
During the years ended December 31, 2024 and 2023, and with the approval of the Board of Governors of the Federal Reserve System, the Company repurchased $1.0 million and $5.0 million, respectively, of the 4.50% notes.
During the years ended December 31, 2025, 2024 and 2023, and with the approval of the Board of Governors of the Federal Reserve System, the Company redeemed or repurchased $74.0 million, $1.0 million and $5.0 million, respectively, of the 4.50% Notes, leaving no 4.50% Notes outstanding as of December 31, 2025.
The stock repurchase program is intended to expire in three years but may be terminated or amended by the Board of Directors at any time. The stock repurchase program does not obligate the Company to purchase any shares at any time. There were no stock repurchases during the year ended December 31, 2024 or 2023.
The stock repurchase program is intended to expire in three years but may be terminated or amended by the Board of Directors at any time. The stock repurchase program does not obligate the Company to purchase any shares at any time.
These products consist of noninterest and interest-bearing checking accounts, savings deposits, money market accounts and time deposits. Deposits are primarily gathered from individuals, partnerships and corporations in our market areas. We also obtain deposits from local municipalities and state agencies.
We offer a variety of products designed to attract and retain both consumer and commercial deposit customers. These products consist of noninterest and interest-bearing checking accounts, savings deposits, money market accounts and time deposits. Deposits are primarily gathered from individuals, partnerships and corporations in our market areas. We also obtain deposits from local municipalities and state agencies.
All of our mortgage-backed securities and collateralized mortgage obligations are issued and/or guaranteed by U.S. government agencies or U.S. government-sponsored entities. Other than securities issued by government agencies or government sponsored enterprises, we did not own securities of any one issuer for which aggregate cost exceeded 10.0% of our consolidated stockholders’ equity at December 31, 2024 or 2023.
Other than securities issued by government agencies or government sponsored enterprises, we did not own securities of any one issuer for which aggregate cost exceeded 10.0% of our consolidated stockholders’ equity at December 31, 2025 or 2024.
The Inflation Reduction Act of 2022 signed into law during in August 2022 includes a provision for an excise tax equal to 1% of the fair market value of any stock repurchased by covered corporations during a taxable year, subject to certain limits and provisions. The excise tax is effective beginning in 2023.
There were no stock repurchases during the year ended December 31, 2024. 73 Table of Contents The Inflation Reduction Act of 2022 signed into law during in August 2022 includes a provision for an excise tax equal to 1% of the fair market value of any stock repurchased by covered corporations during a taxable year, subject to certain limits and provisions.
Such loans can involve high principal loan amounts, and the repayment of these loans is dependent, in large part, on a borrower’s ongoing business operations or on income generated from the properties that are leased to third parties. The table below sets forth the CRE loan portfolio, by portfolio industry sector and collateral location as of December 31, 2024.
Such loans can involve high principal loan amounts, and the repayment of these loans is dependent, in large part, on a borrower’s ongoing business operations or on income generated from the properties that are leased to third parties.
Subsequent changes to the ALCL are recorded through the provision for credit losses. 65 Table of Contents As a general rule, when it becomes evident that the full principal and accrued interest of a loan may not be collected, or at 90 days past due, we will reflect that loan as nonperforming.
As a general rule, when it becomes evident that the full principal and accrued interest of a loan may not be collected, or at 90 days past due, we will reflect that loan as nonperforming.
We also consider potential interest rate risk caused by extended maturities of time deposits when setting the interest rates in periods of future economic uncertainty. 70 Table of Contents The following table reflects the classification of our average deposits and the average rate paid on each deposit category for the periods indicated: Years Ended December 31, 2024 2023 2022 (Dollars in thousands) Average Balance Interest Expense Average Rate Paid Average Balance Interest Expense Average Rate Paid Average Balance Interest Expense Average Rate Paid Interest-bearing demand $ 1,863,361 $ 63,291 3.40 % $ 1,788,423 $ 50,033 2.80 % $ 1,545,581 $ 11,007 0.71 % Money market 2,942,691 119,533 4.06 2,646,447 91,685 3.46 2,233,390 17,501 0.78 Time deposits 1,004,934 39,634 3.94 928,694 27,892 3.00 611,195 4,476 0.73 Brokered deposits (1) 509,434 27,321 5.36 470,040 24,241 5.16 5,002 8 0.16 Savings 289,525 5,094 1.76 291,059 2,606 0.90 288,010 517 0.18 Total interest-bearing 6,609,945 254,873 3.86 6,124,663 196,457 3.21 4,683,178 33,509 0.72 Noninterest-bearing demand 1,887,884 — 2,147,019 — 2,422,132 — Total average deposits $ 8,497,829 $ 254,873 3.00 $ 8,271,682 $ 196,457 2.38 $ 7,105,310 $ 33,509 0.47 ______________________ (1) Average brokered deposits include average brokered time deposits and average brokered interest-bearing demand of $440.0 million and $69.4 million, respectively, for the year ended December 31, 2024.
We also consider potential interest rate risk caused by extended maturities of time deposits when setting the interest rates in periods of future economic uncertainty. 69 Table of Contents The following table reflects the classification of our average deposits, and the average rate paid on each deposit category for the periods indicated: Years Ended December 31, 2025 2024 2023 (Dollars in thousands) Average Balance Interest Expense Average Rate Paid Average Balance Interest Expense Average Rate Paid Average Balance Interest Expense Average Rate Paid Interest-bearing demand $ 1,895,536 $ 53,185 2.81 % $ 1,863,361 $ 63,291 3.40 % $ 1,788,423 $ 50,033 2.80 % Money market 3,293,749 111,550 3.39 2,942,691 119,533 4.06 2,646,447 91,685 3.46 Time deposits 842,875 28,771 3.41 1,004,934 39,634 3.94 928,694 27,892 3.00 Brokered deposits (1) 24,889 1,245 5.00 509,434 27,321 5.36 470,040 24,241 5.16 Savings 314,929 4,716 1.50 289,525 5,094 1.76 291,059 2,606 0.90 Total interest-bearing 6,371,978 199,467 3.13 6,609,945 254,873 3.86 6,124,663 196,457 3.21 Noninterest-bearing demand 1,905,911 — 1,887,884 — 2,147,019 — Total average deposits $ 8,277,889 $ 199,467 2.41 $ 8,497,829 $ 254,873 3.00 $ 8,271,682 $ 196,457 2.38 ______________________ (1) Average brokered deposits include average brokered time deposits of $24.9 million, for the year ended December 31, 2025.
These items negatively impacted our diluted EPS of $2.45 by $0.29 for the year ended December 31, 2024. 53 Table of Contents Comparison of Results of Operations for the Years Ended December 31, 2024, 2023 and 2022 At and for the Years Ended December 31, (Dollars in thousands, except per share amounts) 2024 2023 2022 Net income $ 76,492 $ 83,800 $ 87,715 Financial ratios: ROAA (1) 0.77 % 0.84 % 1.01 % ROAE (1) 6.92 8.38 10.81 Capital ratio: Book value per common share $ 36.71 $ 34.30 $ 30.90 ____________________________ (1) All average balances are calculated using average daily balances.
On a diluted EPS basis, we reported $2.40 per share for the year ended December 31, 2025, compared to $2.45 per share for the year ended December 31, 2024. 52 Table of Contents Comparison of Results of Operations for the Years Ended December 31, 2025, 2024 and 2023 At and for the Years Ended December 31, (Dollars in thousands, except per share amounts) 2025 2024 2023 Net income $ 75,197 $ 76,492 $ 83,800 Financial ratios: ROAA (1) 0.77 % 0.77 % 0.84 % ROAE (1) 6.24 6.92 8.38 Capital ratio: Book value per common share $ 40.28 $ 36.71 $ 34.30 ____________________________ (1) All average balances are calculated using average daily balances.
The fair value estimates associated with the loans include estimates related to expected prepayments and the amount and timing of undiscounted expected principal, interest and other cash flows. Purchased loans that have experienced more than insignificant credit deterioration since origination are PCD loans. An ALCL is determined using the same methodology as other individually evaluated loans.
The fair value estimates associated with the loans include estimates related to expected prepayments and the amount and timing of undiscounted expected principal, interest and other cash flows. 64 Table of Contents Purchased loans that have experienced more than insignificant credit deterioration since origination are purchased credit deteriorated (“PCD”) loans.
There can be no assurance, however, that our loan portfolio will not become subject to losses due to declines in economic conditions or deterioration in the financial condition of our borrowers. 63 Table of Contents The following table shows our nonperforming loans and nonperforming assets at the dates indicated: (Dollars in thousands) Nonperforming LHFI: December 31, 2024 December 31, 2023 Commercial real estate $ 4,974 $ 786 Construction/land/land development 18,505 305 Residential real estate 36,221 13,037 Commercial and industrial 15,120 15,897 Consumer 182 90 Total nonperforming LHFI 75,002 30,115 Other real estate owned: Commercial real estate, construction/land/land development 1,340 3,068 Residential real estate 1,261 846 Former Bank premises 1,034 — Total other real estate owned 3,635 3,914 Other repossessed assets owned — 15 Total repossessed assets owned 3,635 3,929 Total nonperforming assets $ 78,637 $ 34,044 Total LHFI $ 7,573,713 $ 7,660,944 Ratio of nonperforming LHFI to total LHFI 0.99 % 0.39 % Ratio of nonperforming assets to total assets 0.81 0.35 As explained in detail in Part II, Item 8, Note 18 — Commitments and Contingencies under Loss Contingencies, our credit metrics were negatively impacted by certain questioned activity involving a former banker in our East Texas market.
There can be no assurance, however, that our loan portfolio will not become subject to losses due to declines in economic conditions or deterioration in the financial condition of our borrowers. 62 Table of Contents The following table shows our nonperforming loans and nonperforming assets at the dates indicated: (Dollars in thousands) Nonperforming LHFI: December 31, 2025 December 31, 2024 Commercial real estate $ 13,212 $ 4,974 Construction/land/land development 16,388 18,505 Residential real estate 39,480 36,221 Commercial and industrial 11,919 15,120 Consumer 185 182 Total nonperforming LHFI 81,184 75,002 Other real estate owned: Commercial real estate, construction/land/land development — 1,340 Residential real estate 650 1,261 Former bank premises — 1,034 Total other real estate owned 650 3,635 Other repossessed assets owned 44 — Total repossessed assets owned 694 3,635 Total nonperforming assets $ 81,878 $ 78,637 Total LHFI $ 7,670,917 $ 7,573,713 Ratio of nonperforming LHFI to total LHFI 1.06 % 0.99 % Ratio of nonperforming assets to total assets 0.84 0.81 As explained in detail in Part I, Note 19 — Commitments and Contingencies under Loss Contingencies, and as discussed in previous filings, our classified and nonperforming LHFI were negatively impacted beginning in the second quarter of 2024 as a result of certain questioned activity involving a former banker in our East Texas market.
Primarily due to the declining Tier 2 capital contribution of the BTH Notes, the Company elected to redeem all but $1.1 million of the BTH Notes during the year ended December 31, 2024. 72 Table of Contents In February 2020, Origin Bank completed an offering of $70.0 million in aggregate principal amount of 4.25% fixed-to-floating rate subordinated notes due 2030 (the “4.25% Notes”) to certain investors in a transaction exempt from registration under Section 3(a)(2) of the Securities Act of 1933, as amended.
In February 2020, Origin Bank completed an offering of $70.0 million in aggregate principal amount of 4.25% fixed-to-floating rate subordinated notes due 2030 (the “4.25% Notes”) to certain investors in a transaction exempt from registration under Section 3(a)(2) of the Securities Act of 1933, as amended.
Some of the risk elements we consider include: • for commercial real estate loans, the debt service coverage ratio, operating results of the owner in the case of owner-occupied properties, the loan to value ratio, the age and condition of the collateral and the volatility of income, property value and future operating results typical of properties of that type; • for construction, land and land development loans, the perceived feasibility of the project, including the ability to sell developed lots or improvements constructed for resale or the ability to lease property constructed for lease, the quality and nature of contracts for presale or prelease, if any, experience and ability of the developer and loan to value ratio; • for residential mortgage loans, the borrower’s ability to repay the loan, including a consideration of the debt to income ratio and employment and income stability, the loan-to-value ratio, and the age, condition and marketability of the collateral; and • for commercial and industrial loans, the debt service coverage ratio (income from the business in excess of operating expenses compared to loan repayment requirements), the operating results of the commercial, industrial or professional enterprise, the borrower’s business, professional and financial ability and expertise, the specific risks and volatility of income and operating results typical for businesses in that category and the value, nature and marketability of collateral. • for mortgage warehouse loans, the borrower’s adherence to agency or investor underwriting guidelines, while the risk associated with the underlying consumer mortgage loan repayments, similar to other consumer loans, depends on the borrower’s financial stability and are more likely than commercial loans to be adversely affected by divorce, job loss, illness and other personal hardships.
Some of the risk elements we consider include: • for commercial real estate loans, the debt service coverage ratio, operating results of the owner in the case of owner-occupied properties, the loan to value ratio, the age and condition of the collateral and the volatility of income, property value and future operating results typical of properties of that type; • for construction, land and land development loans, the perceived feasibility of the project, including the ability to sell developed lots or improvements constructed for resale or the ability to lease property constructed for lease, the quality and nature of contracts for presale or prelease, if any, experience and ability of the developer and loan to value ratio; • for residential mortgage loans, the borrower’s ability to repay the loan, including a consideration of the debt to income ratio and employment and income stability, the loan-to-value ratio, and the age, condition and marketability of the collateral; • for commercial and industrial loans, the debt service coverage ratio (income from the business in excess of operating expenses compared to loan repayment requirements), the operating results of the commercial, industrial or professional enterprise, the borrower’s business, professional and financial ability and expertise, the specific risks and volatility of income and operating results typical for businesses in that category and the value, nature and marketability of collateral; and • for mortgage warehouse loans, the borrower’s adherence to agency or investor underwriting guidelines, while the risk associated with the underlying consumer mortgage loan repayments, similar to other consumer loans, depends on the borrower’s financial stability and are more likely than commercial loans to be adversely affected by divorce, job loss, illness and other personal hardships. 65 Table of Contents The following table presents the allowance for credit loss by loan category: December 31, (Dollars in thousands) 2025 2024 Loans secured by real estate: Amount % (1) Amount % (1) Commercial real estate $ 18,929 32.9 % $ 16,546 32.7 % Construction/land/land development 7,219 8.0 7,398 11.4 Residential real estate 14,488 26.0 12,454 24.5 Commercial and industrial 54,496 25.9 53,449 26.5 Mortgage warehouse lines of credit 913 6.9 501 4.6 Consumer 737 0.3 712 0.3 Total $ 96,782 100.0 % $ 91,060 100.0 % ___________________________ (1) Represents the ratio of each loan type to total LHFI.
Years Ended December 31, 2024 2023 2022 (Dollars in thousands) Assets Average Balance (1) Income/Expense Yield/Rate Average Balance (1) Income/Expense Yield/Rate Average Balance (1) Income/Expense Yield/Rate Commercial real estate $ 2,485,800 $ 146,507 5.89 % $ 2,404,530 $ 135,117 5.62 % $ 1,951,246 $ 88,175 4.52 % Construction/land/land development 1,035,871 73,910 7.14 1,015,178 69,630 6.86 708,758 36,352 5.13 Residential real estate 1,799,963 98,732 5.49 1,629,589 81,964 5.03 1,143,190 49,635 4.34 Commercial and industrial 2,087,361 163,868 7.85 2,054,081 155,842 7.59 1,675,719 90,499 5.40 Mortgage warehouse lines of credit 420,665 31,587 7.51 314,079 21,476 6.84 420,639 18,732 4.45 Consumer 22,962 1,819 7.92 24,627 1,918 7.79 20,913 1,444 6.91 LHFI 7,852,622 516,423 6.58 7,442,084 465,947 6.26 5,920,465 284,837 4.81 Loans held for sale 13,306 858 6.45 18,055 868 4.81 32,272 1,313 4.07 Loans receivable 7,865,928 517,281 6.58 7,460,139 466,815 6.26 5,952,737 286,150 4.81 Investment securities-taxable 1,045,520 26,642 2.55 1,295,871 31,682 2.44 1,497,226 27,795 1.86 Investment securities-non-taxable 146,815 3,672 2.50 214,232 5,098 2.38 270,701 7,172 2.65 Non-marketable equity securities held in other financial institutions 62,579 2,417 3.86 67,956 3,408 5.01 58,441 1,802 3.08 Interest-earning deposits in banks 279,945 14,573 5.21 318,559 16,388 5.14 349,484 3,685 1.05 Total interest-earning assets 9,400,787 564,585 6.01 9,356,757 523,391 5.59 8,128,589 326,604 4.02 Noninterest-earning assets 557,803 584,263 557,642 Total assets $ 9,958,590 $ 9,941,020 $ 8,686,231 Liabilities and Stockholders’ Equity Liabilities Interest-bearing liabilities Savings and interest-bearing transaction accounts $ 5,164,991 $ 191,620 3.71 % $ 4,725,929 $ 144,324 3.05 % $ 4,066,981 $ 29,025 0.71 % Time deposits 1,444,954 63,253 4.38 1,398,734 52,133 3.73 616,197 4,484 0.73 Total interest-bearing deposits 6,609,945 254,873 3.86 6,124,663 196,457 3.21 4,683,178 33,509 0.72 FHLB advances & other borrowings 34,203 1,602 4.68 327,792 17,258 5.26 444,426 9,411 2.12 Subordinated indebtedness 161,232 7,744 4.80 198,856 10,119 5.09 176,028 8,406 4.78 Total interest-bearing liabilities 6,805,380 264,219 3.88 6,651,311 223,834 3.37 5,303,632 51,326 0.97 Noninterest-bearing liabilities Noninterest-bearing deposits 1,887,884 2,147,019 2,422,132 Other liabilities 159,676 142,786 148,984 Total liabilities 8,852,940 8,941,116 7,874,748 Stockholders’ Equity 1,105,650 999,904 811,483 Total liabilities and stockholders’ equity $ 9,958,590 $ 9,941,020 $ 8,686,231 Net interest spread 2.13 % 2.22 % 3.05 % Net interest income and margin $ 300,366 3.20 $ 299,557 3.20 $ 275,278 3.39 Net interest income and margin - (tax equivalent) (2) $ 302,405 3.22 $ 302,132 3.23 $ 278,403 3.42 ____________________________ (1) Nonaccrual loans are included in their respective loan category for the purpose of calculating the yield earned.
Years Ended December 31, 2025 2024 2023 (Dollars in thousands) Assets Average Balance (1) Income/Expense Yield/Rate (2) Average Balance (1) Income/Expense Yield/Rate (2) Average Balance (1) Income/Expense Yield/Rate (2) Commercial real estate $ 2,457,523 $ 143,047 5.82 % $ 2,485,800 $ 146,507 5.89 % $ 2,404,530 $ 135,117 5.62 % Construction/land/land development 702,655 48,689 6.93 1,035,871 73,910 7.14 1,015,178 69,630 6.86 Residential real estate 1,969,247 110,770 5.62 1,799,963 98,732 5.49 1,629,589 81,964 5.03 Commercial and industrial 2,013,301 144,825 7.19 2,087,361 163,868 7.85 2,054,081 155,842 7.59 Mortgage warehouse lines of credit 412,030 28,380 6.89 420,665 31,587 7.51 314,079 21,476 6.84 Consumer 21,482 1,574 7.33 22,962 1,819 7.92 24,627 1,918 7.79 LHFI 7,576,238 477,285 6.30 7,852,622 516,423 6.58 7,442,084 465,947 6.26 Loans held for sale 6,114 407 6.66 13,306 858 6.45 18,055 868 4.81 Loans receivable 7,582,352 477,692 6.30 7,865,928 517,281 6.58 7,460,139 466,815 6.26 Investment securities-taxable 993,361 33,526 3.38 1,045,520 26,642 2.55 1,295,871 31,682 2.44 Investment securities-non-taxable 168,353 5,403 3.21 146,815 3,672 2.50 214,232 5,098 2.38 Non-marketable equity securities held in other financial institutions 53,534 2,683 5.01 62,579 2,417 3.86 67,956 3,408 5.01 Interest-earning deposits in banks 432,012 18,659 4.32 279,945 14,573 5.21 318,559 16,388 5.14 Total interest-earning assets 9,229,612 537,963 5.83 9,400,787 564,585 6.01 9,356,757 523,391 5.59 Noninterest-earning assets 540,655 557,803 584,263 Total assets $ 9,770,267 $ 9,958,590 $ 9,941,020 Liabilities and Stockholders’ Equity Liabilities Interest-bearing liabilities Savings and interest-bearing transaction accounts $ 5,504,214 $ 169,451 3.08 % $ 5,164,991 $ 191,620 3.71 % $ 4,725,929 $ 144,324 3.05 % Time deposits 867,764 30,016 3.46 1,444,954 63,253 4.38 1,398,734 52,133 3.73 Total interest-bearing deposits 6,371,978 199,467 3.13 6,609,945 254,873 3.86 6,124,663 196,457 3.21 FHLB advances & other borrowings 42,958 1,687 3.93 34,203 1,602 4.68 327,792 17,258 5.26 Subordinated indebtedness 86,310 5,816 6.74 161,232 7,744 4.80 198,856 10,119 5.09 Total interest-bearing liabilities 6,501,246 206,970 3.18 6,805,380 264,219 3.88 6,651,311 223,834 3.37 Noninterest-bearing liabilities Noninterest-bearing deposits 1,905,911 1,887,884 2,147,019 Other liabilities 158,518 159,676 142,786 Total liabilities 8,565,675 8,852,940 8,941,116 Stockholders’ Equity 1,204,592 1,105,650 999,904 Total liabilities and stockholders’ equity $ 9,770,267 $ 9,958,590 $ 9,941,020 Net interest spread 2.65 % 2.13 % 2.22 % Net interest income and margin $ 330,993 3.59 $ 300,366 3.20 $ 299,557 3.20 Net interest income and margin - (tax equivalent) (3) $ 332,913 3.61 $ 302,405 3.22 $ 302,132 3.23 ____________________________ (1) Nonaccrual loans are included in their respective loan category for the purpose of calculating the yield earned.
Changes in stockholders’ equity is reflected below: (Dollars in thousands) Total Stockholders’ Equity Balance at January 1, 2024 $ 1,062,905 Net income 76,492 Other comprehensive income, net of tax 14,994 Dividends declared - common stock ($0.60 per share) (18,991) Other 9,845 Balance at December 31, 2024 $ 1,145,245 Stock Repurchases In July 2022, the Board of Directors of the Company authorized a stock repurchase program pursuant to which the Company may, from time to time, purchase up to $50 million of its outstanding common stock.
Changes in stockholders’ equity is reflected below: (Dollars in thousands) Total Stockholders’ Equity Balance at January 1, 2025 $ 1,145,245 Net income 75,197 Other comprehensive income, net of tax 51,888 Dividends declared - common stock ($0.60 per share) (19,049) Repurchase of common stock (15,806) Other 9,210 Balance at December 31, 2025 $ 1,246,685 Stock Repurchases In July 2022, the Board of Directors of the Company authorized a stock repurchase program pursuant to which the Company was authorized to purchase up to $50.0 million of its outstanding common stock.
December 31, (Dollars in thousands) 2024 2023 Available for sale: Carrying Amount % of Total Carrying Amount % of Total State and municipal securities $ 255,976 23.2 % $ 282,126 22.5 % Corporate bonds 78,236 7.1 83,635 6.7 U.S. treasury and government agency securities 13,805 1.3 79,640 6.4 Commercial mortgage-backed securities 44,284 4.0 93,396 7.5 Residential mortgage-backed securities 540,834 49.0 506,502 40.3 Commercial collateralized mortgage obligations 28,566 2.6 35,183 2.8 Residential collateralized mortgage obligations 140,827 12.8 130,144 10.4 Asset-backed securities — — 43,005 3.4 Total $ 1,102,528 100.0 % $ 1,253,631 100.0 % Held to maturity: State and municipal securities, net of allowance $ 11,095 $ 11,615 Securities carried at fair value through income: State and municipal securities $ 6,512 $ 6,808 68 Table of Contents The following table presents the fair value of securities available for sale and amortized cost of securities held to maturity and their corresponding yields at December 31, 2024.
December 31, (Dollars in thousands) 2025 2024 Available for sale: Carrying Amount % of Total Carrying Amount % of Total State and municipal securities $ 294,884 26.4 % $ 255,976 23.2 % Corporate bonds 55,704 5.0 78,236 7.1 U.S. treasury and government agency securities 3,140 0.3 13,805 1.3 Commercial mortgage-backed securities 15,286 1.4 44,284 4.0 Residential mortgage-backed securities 454,485 40.6 540,834 49.0 Commercial collateralized mortgage obligations 82,793 7.4 28,566 2.6 Residential collateralized mortgage obligations 210,884 18.9 140,827 12.8 Total $ 1,117,176 100.0 % $ 1,102,528 100.0 % Held to maturity: State and municipal securities, net of allowance $ 10,559 $ 11,095 Securities carried at fair value through income: State and municipal securities $ 6,215 $ 6,512 67 Table of Contents The following table presents the fair value of securities available for sale and amortized cost of securities held to maturity and their corresponding yields at December 31, 2025.
The sum of the loan’s purchase price and allowance for credit losses becomes its initial amortized cost basis. The difference between the initial amortized cost basis and the par value of the loan is a non-credit discount or premium, which is amortized or accreted into interest income over the life of the loan.
The difference between the initial amortized cost basis and the par value of the loan is a non-credit discount or premium, which is amortized or accreted into interest income over the life of the loan. Subsequent changes to the ALCL are recorded through the provision for credit losses.
At December 31, 2024, 75.2% of the loan portfolio held for investment was comprised of commercial and industrial loans, including mortgage warehouse lines of credit, commercial real estate and construction/land/land development loans, which were primarily originated within our legacy market areas of Texas, North Louisiana, and Mississippi, compared to 77.1% at December 31, 2023. 61 Table of Contents The following table presents the ending balance of our loan portfolio held for investment at the dates indicated.
At December 31, 2025, 73.7% of the loan portfolio held for investment was comprised of commercial and industrial loans, including mortgage warehouse lines of credit, commercial real estate and construction/land/land development loans, which were primarily originated within our existing market areas, compared to 75.2% at December 31, 2024.
We may use interest rates as a mechanism to attract or deter additional deposits based on our anticipated funding needs and liquidity position.
We manage our interest expense on deposits through specific deposit product pricing that is based on competitive pricing, economic conditions and current and anticipated funding needs. We may use interest rates as a mechanism to attract or deter additional deposits based on our anticipated funding needs and liquidity position.
Net Interest Income and Net Interest Margin Net interest income for the year ended December 31, 2024, was $300.4 million, an increase of $809,000, or 0.3%, compared to the year ended December 31, 2023.
Net Interest Income and Net Interest Margin Net interest income for the year ended December 31, 2025, was $331.0 million, an increase of $30.6 million, or 10.2%, compared to the year ended December 31, 2024.
We provide a broad range of financial services and currently has over 60 locations from Dallas/Fort Worth, East Texas, Houston, across North Louisiana, Mississippi, South Alabama and into the Florida Panhandle .
We provide a broad range of financial services and currently has more than 56 locations from Dallas/Fort Worth, East Texas, Houston, across North Louisiana, Mississippi, South Alabama and into the Florida Panhandle . In addition, we provide a broad range of insurance agency products and services through our wholly owned insurance agency subsidiary, Forth Insurance, LLC.
Our available for sale portfolio totaled $1.25 billion at December 31, 2023, which represented 98.6% of our total security portfolio, and was comprised of 47.8% mortgage-backed, 22.5% municipal, 6.4% treasury/agency, 13.2% collateralized mortgage obligations and 10.1% corporate/asset-backed securities.
Our available for sale portfolio totaled $1.12 billion at December 31, 2025, which represented 98.5% of our total security portfolio and is comprised of 42.0% mortgage-backed, 26.4% municipal, 26.3% collateralized mortgage obligations, 5.0% corporate and 0.3% treasury/agency securities.
We manage the quality of our lending portfolio in part through a disciplined underwriting policy and through continual monitoring of loan performance and borrowers’ financial condition.
If a loan is determined by management to be uncollectible, regardless of size, the portion of the loan determined to be uncollectible is then charged to the ALCL. We manage the quality of our lending portfolio in part through a disciplined underwriting policy and through continual monitoring of loan performance and borrowers’ financial condition.
The $4.4 million increase in other noninterest expense was primarily due to $4.3 million in contingency expense related to certain questioned activity involving a former banker in our East Texas market, as explained in detail in Part II, Item 8, Note 18 — Commitments and Contingencies under Loss Contingencies . Data Processing.
The $4.2 million decrease in other noninterest expense was primarily due to a $4.3 million contingent liability recognized during the year ended December 31, 2024, related to certain questioned activity involving a former banker in our East Texas market, as explained in detail in Part I, Item 1, Note 19 — Commitments and Contingencies under Loss Contingencies . Regulatory assessments.
The average rate paid on our interest-bearing deposits for the year ended December 31, 2024, was 3.86%, compared to 3.21% for the year ended December 31, 2023.
The average rate on total interest-bearing liabilities for the year ended December 31, 2025, was 3.18%, compared to 3.88% for the year ended December 31, 2024.
(Dollars in thousands) Years Ended December 31, 2024 vs. 2023 2023 vs. 2022 Noninterest income: 2024 2023 2022 $ Change % Change $ Change % Change Insurance commission and fee income $ 26,759 $ 25,085 $ 22,869 $ 1,674 6.7 % $ 2,216 9.7 % Service charges and fees 19,015 18,803 17,669 212 1.1 1,134 6.4 Other fee income 8,917 8,089 7,279 828 10.2 810 11.1 Mortgage banking revenue 6,580 3,356 6,722 3,224 96.1 (3,366) (50.1) Swap fee income 323 1,277 457 (954) (74.7) 820 N/M (Loss) gain on sales of securities, net (14,799) (11,635) 1,664 (3,164) 27.2 (13,299) N/M Change in fair value of equity investments 5,188 10,096 — (4,908) (48.6) 10,096 N/A Other income 3,396 3,264 614 132 4.0 2,650 N/M Total noninterest income $ 55,379 $ 58,335 $ 57,274 $ (2,956) (5.1) $ 1,061 1.9 ____________________________ N/M = Not meaningful.
(Dollars in thousands) Years Ended December 31, 2025 vs. 2024 2024 vs. 2023 Noninterest income: 2025 2024 2023 $ Change % Change $ Change % Change Insurance commission and fee income $ 27,117 $ 26,759 $ 25,085 $ 358 1.3 % $ 1,674 6.7 % Service charges and fees 19,651 19,015 18,803 636 3.3 212 1.1 Other fee income 9,500 8,917 8,089 583 6.5 828 10.2 Mortgage banking revenue 3,690 6,580 3,356 (2,890) (43.9) 3,224 96.1 Swap fee income 3,413 323 1,277 3,090 N/M (954) (74.7) Loss on sales of securities, net (14,448) (14,799) (11,635) 351 2.4 (3,164) 27.2 Change in fair value of equity investments 6,972 5,188 10,096 1,784 34.4 (4,908) (48.6) Equity method investment (loss) income (1,192) 519 405 (1,711) N/M 114 28.1 Other income 5,131 2,877 2,859 2,254 78.3 18 0.6 Total noninterest income $ 59,834 $ 55,379 $ 58,335 $ 4,455 8.0 $ (2,956) (5.1) ____________________________ N/M = Not meaningful.
Average noninterest-bearing deposits during the year ended December 31, 2024, were $1.89 billion, compared to $2.15 billion at December 31, 2023, a decrease of $259.1 million, or 12.1%, and represented 22.2% and 26.0% of average total deposits for the year ended December 31, 2024 and 2023, respectively.
Average noninterest-bearing deposits were $1.91 billion for the year ended December 31, 2025, an increase of $18.0 million, or 1.0%, from $1.89 billion for the year ended December 31, 2024, and represented 23.0% and 22.2% of average total deposits for the year ended December 31, 2025 and 2024, respectively.
The decrease was primarily due to sales, maturities and calls, as well as normal principal paydowns, which was partially offset by purchases and a decrease in unrealized losses during the year ended December 31, 2024. During the fourth quarter of 2024, we executed a bond portfolio optimization strategy aimed at enhancing long-term yields and improving overall portfolio performance.
The increase was primarily due to purchases and a decrease in unrealized losses during the year ended December 31, 2025, which was partially offset by sales, maturities and calls, as well as normal principal paydowns.
(Dollars in thousands) Years Ended December 31, ALCL 2024 2023 Balance at beginning of year $ 96,868 $ 87,161 Provision for loan credit losses 8,680 17,514 Charge-offs: Commercial real estate 480 42 Residential real estate 11 27 Commercial and industrial 22,787 11,833 Consumer 362 147 Total charge-offs 23,640 12,049 Recoveries: Commercial real estate 530 140 Construction/land/land development — 3 Residential real estate 16 17 Commercial and industrial 8,583 4,068 Consumer 23 14 Total recoveries 9,152 4,242 Net charge-offs 14,488 7,807 Balance at end of year $ 91,060 $ 96,868 Ratio of ALCL to: Nonperforming LHFI 121.41 % 321.66 % LHFI 1.20 1.26 Net charge-offs as a percentage of: Provision for loan credit losses 166.91 44.58 ALCL 15.91 8.06 Average LHFI 0.18 0.10 The ALCL to nonperforming LHFI decreased to 121.41% at December 31, 2024, compared to 321.66% at December 31, 2023, primarily driven by a $44.9 million increase in nonperforming LHFI at December 31, 2024.
(Dollars in thousands) Years Ended December 31, ALCL 2025 2024 Balance at beginning of year $ 91,060 $ 96,868 Provision for loan credit losses 45,303 8,680 Charge-offs: Commercial real estate 728 480 Residential real estate 489 11 Commercial and industrial 43,691 22,787 Consumer 174 362 Total charge-offs 45,082 23,640 Recoveries: Commercial real estate 18 530 Residential real estate 60 16 Commercial and industrial 5,392 8,583 Consumer 31 23 Total recoveries 5,501 9,152 Net charge-offs 39,581 14,488 Balance at end of year $ 96,782 $ 91,060 Ratio of ALCL to: Nonperforming LHFI 119.21 % 121.41 % LHFI 1.26 1.20 Net charge-offs as a percentage of: Provision for loan credit losses 87.37 166.91 ALCL 40.90 15.91 Average LHFI 0.52 0.18 Our ALCL increased by $5.7 million, or 6.3%, to $96.8 million at December 31, 2025, from $91.1 million at December 31, 2024.
An allowance for credit losses is determined using the same methodology as other individually evaluated loans. Subsequent changes to the allowance for credit losses are recorded through the provision for credit losses. We held approximately $12.3 million of unpaid principal balance PCD loans at December 31, 2024, and $34.8 million of unpaid principal balance PCD loans at December 31, 2023.
We held approximately $5.4 million and $12.3 million of unpaid principal balance PCD loans at December 31, 2025 and December 31, 2024, respectively. An ALCL is determined using the same methodology as other individually evaluated loans. The sum of the loan’s purchase price and allowance for credit losses becomes its initial amortized cost basis.
During a period of decreasing interest rates, fixed rate mortgage-backed securities tend to experience higher prepayments of principal, which can significantly shorten the estimated average life of these securities. As interest rates continue to fall, prepayments activity may increase further, thereby accelerating the reduction in the estimated average life of these securities.
Monthly pay downs on mortgage-backed securities tend to cause the average life of the securities to be much different from the stated contractual maturity. During a period of decreasing interest rates, fixed rate mortgage-backed securities tend to experience higher prepayments of principal, which can significantly shorten the estimated average life of these securities.
The following table presents our deposit mix at the dates indicated: December 31, 2024 December 31, 2023 (Dollars in thousands) Balance % of Total Balance % of Total $ Change % Change Noninterest-bearing demand $ 1,900,651 23.1 % $ 1,919,638 23.3 % $ (18,987) (1.0) % Money market 2,930,710 35.6 2,772,807 33.6 157,903 5.7 Interest-bearing demand 2,060,463 25.1 1,875,864 22.7 184,599 9.8 Time deposits 941,000 11.4 967,901 11.7 (26,901) (2.8) Brokered deposits (1) 80,226 1.0 444,989 5.4 (364,763) (82.0) Savings 310,070 3.8 269,926 3.3 40,144 14.9 Total deposits $ 8,223,120 100.0 % $ 8,251,125 100.0 % $ (28,005) (0.3) _____________________ (1) At December 31, 2024, brokered deposits included brokered time deposits and brokered interest-bearing demand of $79.99 million and $236,000, respectively.
The following table presents our deposit mix at the dates indicated: December 31, 2025 December 31, 2024 (Dollars in thousands) Balance % of Total Balance % of Total $ Change % Change Noninterest-bearing demand $ 1,979,875 23.8 % $ 1,900,651 23.1 % $ 79,224 4.2 % Money market 3,281,708 39.5 2,930,710 35.6 350,998 12.0 Interest-bearing demand 1,917,658 23.1 2,060,463 25.1 (142,805) (6.9) Time deposits 829,452 10.0 941,000 11.4 (111,548) (11.9) Brokered deposits (1) — — 80,226 1.0 (80,226) (100.0) Savings 298,554 3.6 310,070 3.8 (11,516) (3.7) Total deposits $ 8,307,247 100.0 % $ 8,223,120 100.0 % $ 84,127 1.0 _____________________ (1) At December 31, 2024, brokered deposits included brokered time deposits and brokered interest-bearing demand of $80.0 million and $236,000, respectively.
Amount Ratio Amount Ratio Common equity Tier 1 capital (to risk-weighted assets) $ 1,085,860 13.32 % $ 1,012,916 11.83 % Tier 1 capital (to risk-weighted assets) 1,101,766 13.52 1,028,729 12.01 Total capital (to risk-weighted assets) 1,339,735 16.44 1,286,604 15.02 Tier 1 capital (to average total consolidated assets) 1,101,766 11.08 1,028,729 10.50 Origin Bank Common equity Tier 1 capital (to risk-weighted assets) $ 1,075,768 13.29 % $ 1,019,732 11.95 % Tier 1 capital (to risk-weighted assets) 1,075,768 13.29 1,019,732 11.95 Total capital (to risk-weighted assets) 1,239,644 15.31 1,188,000 13.92 Tier 1 capital (to average total consolidated assets) 1,075,768 10.89 1,019,732 10.45
Amount Ratio Amount Ratio Common equity Tier 1 capital (to risk-weighted assets) $ 1,139,627 13.54 % $ 1,085,860 13.32 % Tier 1 capital (to risk-weighted assets) 1,155,628 13.73 1,101,766 13.52 Total capital (to risk-weighted assets) 1,255,717 14.91 1,339,735 16.44 Tier 1 capital (to average total consolidated assets) 1,155,628 11.86 1,101,766 11.08 Origin Bank Common equity Tier 1 capital (to risk-weighted assets) $ 1,054,279 12.62 % $ 1,075,768 13.29 % Tier 1 capital (to risk-weighted assets) 1,054,279 12.62 1,075,768 13.29 Total capital (to risk-weighted assets) 1,154,368 13.82 1,239,644 15.31 Tier 1 capital (to average total consolidated assets) 1,054,279 10.91 1,075,768 10.89
These increases were partially offset by decreases of $1.9 million and $1.6 million in loan-related expenses and intangible asset amortization, respectively. Salaries and employee benefits.
These decreases were partially offset by increases of $2.1 million, $1.9 million, and $1.3 million in salaries and employee benefits, occupancy and equipment, net, and office and operations expenses, respectively. Other noninterest expense.
Total deposits remained relatively flat at December 31, 2024, compared to December 31, 2023, with increases of $184.6 million, $157.9 million, and $40.1 million in interest-bearing demand, money market, and savings deposits, respectively, being offset by decreases of $364.8 million and $26.9 million in brokered and time deposits.
Total deposits increased $84.1 million, or 1.0%, at December 31, 2025, compared to December 31, 2024, with increases of $351.0 million and $79.2 million in money market and noninterest-bearing demand, respectively, offset by decreases of $142.8 million, $111.5 million, $80.2 million and $11.5 million in interest-bearing demand, time deposits, brokered deposits and savings, respectively.
As a result, we replaced securities with a total book value of $188.2 million and a weighted average yield of 1.51% with new securities totaling $173.7 million with a weighted average yield of 5.22%, realizing a loss of $14.6 million.
During the second quarter of 2025, we replaced securities with a total book value of $215.8 million and a weighted average yield of 2.60% with new securities totaling $201.8 million with a weighted average yield of 5.23%, realizing a loss of $14.4 million.
The contractual maturity of mortgage-backed securities and collateralized mortgage obligations is not a reliable indicator of their expected life because borrowers have the right to prepay their obligations at any time. Mortgage-backed securities and collateralized mortgage obligations are typically issued with stated principal amounts and are backed by pools of mortgage loans and other loans with varying maturities.
(2) Yields are calculated without consideration of the impact of certain interest rate swaps designated as fair value hedges. The contractual maturity of mortgage-backed securities and collateralized mortgage obligations is not a reliable indicator of their expected life because borrowers have the right to prepay their obligations at any time.
The $1.6 million decrease in intangible asset amortization is primarily due to the accelerated amortization method used to measure the amortization expense of the assets, as well as certain intangible assets that were fully amortized during the year ended December 31, 2023.
The $1.4 million decrease in intangible asset amortization is primarily due to the accelerated amortization method used to measure the amortization expense of the assets. Salaries and employee benefits.
The ratio of ALCL to total LHFI decreased to 1.20% at December 31, 2024, compared to 1.26% at December 31, 2023. 66 Table of Contents The following table presents an analysis of the ALCL and other related data at the periods indicated.
The following table presents an analysis of the ALCL and other related data at the periods indicated.
Average brokered deposits included average brokered time deposits of $470.0 million and $5.0 million for the years ended December 31, 2023, and 2022, respectively. Our average deposit balances were $8.50 billion for the year ended December 31, 2024, an increase of $226.1 million, or 2.7%, from $8.27 billion for the year ended December 31, 2023.
Average brokered deposits include average brokered time deposits and average brokered interest-bearing demand of $440.0 million and $69.4 million, respectively, for the year ended December 31, 2024. Our average deposit balances were $8.28 billion for the year ended December 31, 2025, a decrease of $219.9 million, or 2.6%, from $8.50 billion for the year ended December 31, 2024.
The $10.0 million increase in salaries and employee benefits expense was primarily driven by increases of $6.6 million, $2.0 million, $1.7 million, and $1.5 million in salary expense, incentive compensation bonus, share-based compensation, and medical insurance expenses respectively.
The $2.1 million increase in salaries and employee benefits expense was primarily driven by increases of $1.8 million and $1.1 million in medical costs and incentive compensation, respectively, for the year ended December 31, 2025, compared to the year ended December 31, 2024.
Income Tax Expense For the year ended December 31, 2024, we recognized income tax expense of $20.8 million, compared to $22.1 million for the year ended December 31, 2023. Our effective tax rate was 21.4% for the year ended December 31, 2024, compared to 20.9% for the year ended December 31, 2023.
The $1.3 million increase in office and operations expense was primarily related to a $724,000 increase in check and card fraud. Income Tax Expense For the year ended December 31, 2025, we recognized income tax expense of $20.4 million, compared to $20.8 million for the year ended December 31, 2024.
Total deposits decreased by $28.0 million, or 0.3%, to $8.22 billion at December 31, 2024, from $8.25 billion at December 31, 2023, primarily due to a decrease of $364.8 million in brokered deposits, which was partially offset by increases of $184.6 million and $157.9 million and interest-bearing demand and money market deposits, respectively.
Total deposits increased by $84.1 million, or 1.0%, to $8.31 billion at December 31, 2025, from $8.22 billion at December 31, 2024, primarily due to increases of $351.0 million and $79.2 million in money market and noninterest-bearing deposits, respectively.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

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Biggest changeDuring the second half of 2024, the federal funds target range decreased 100 basis points from its recent cycle high. Impact of Inflation Our financial statements included herein have been prepared in accordance with U.S. GAAP, which presently requires us to measure the majority of our financial position and operating results primarily in terms of historic dollars.
Biggest changeThe Federal Reserve Board reduced the federal funds target rate range six times during the two years ended December 31, 2025, for a total of 175 basis points from its recent cycle high set in mid-2023, to a range of 3.50% to 3.75%. Impact of Inflation Our financial statements included herein have been prepared in accordance with U.S.
Internal policy regarding interest rate risk simulations currently specifies that for instantaneous parallel shifts of the yield curve, estimated net interest income at risk for the subsequent one-year period should not decline by more than 10.0% for a 100-basis point shift, 15.0% for a 200-basis point shift, 20.0% for a 300-basis point shift, and 25.0% for a 400-basis point shift.
Internal policy regarding interest rate risk simulations currently specifies that for instantaneous parallel shifts of the yield curve, estimated net interest income at risk for the subsequent one-year period should not change by more than 10.0% for a 100-basis point shift, 15.0% for a 200-basis point shift, 20.0% for a 300-basis point shift, and 25.0% for a 400-basis point shift.
Interest rates are highly sensitive to many factors that are beyond our control, including changes in the expected rate of inflation, the influence of general and local economic conditions and the monetary and fiscal policies of the United States government, its agencies and various other governmental regulatory authorities. 77 Table of Contents
Interest rates are highly sensitive to many factors that are beyond our control, including changes in the expected rate of inflation, the influence of general and local economic conditions and the monetary and fiscal policies of the United States government, its agencies and various other governmental regulatory authorities. 76 Table of Contents
These models test the impact on net interest income and fair value of equity from changes in market interest rates under various scenarios. Under the static model, rates are shocked instantaneously, and ramped rates change over a twelve-month and twenty-four-month horizon based upon parallel yield curve shifts.
These models test the impact on net interest income and fair value of equity from changes in market interest rates under various scenarios. Under the static model, rates are shocked instantaneously, and ramped rates change over a twelve-month horizon based upon parallel yield curve shifts.
December 31, 2024 Change in Interest Rates (basis points) % Change in Net Interest Income % Change in Fair Value of Equity +400 15.9 % (9.3) % +300 12.1 (6.8) +200 8.3 (4.1) +100 4.2 (1.8) Base -100 (4.9) 1.7 -200 (7.8) 3.2 -300 (10.1) 4.9 -400 (11.0) 7.1 We have found that, historically, interest rates on deposits do not change completely in tandem with the changes in the discount and federal funds rates.
December 31, 2025 Change in Interest Rates (basis points) % Change in Net Interest Income % Change in Fair Value of Equity +400 17.6 % (6.7) % +300 13.5 (4.4) +200 9.1 (2.4) +100 4.6 (0.9) Base -100 (4.7) 0.6 -200 (6.7) 1.1 -300 (7.8) 1.9 -400 (9.7) 2.1 75 Table of Contents We have found that, historically, interest rates on deposits do not change completely in tandem with the changes in the discount and federal funds rates.
Our exposure to interest rate risk is managed by the Bank’s Asset-Liability Management Committee in accordance with policies approved by the Bank’s board of directors. The committee formulates strategies based on appropriate levels of interest rate risk.
Based on the nature of operations, we are not subject to foreign exchange or commodity price risk. 74 Table of Contents Our exposure to interest rate risk is managed by the Bank’s Asset Liability Committee in accordance with policies approved by the Bank’s board of directors. The committee formulates strategies based on appropriate levels of interest rate risk.
In management’s opinion, changes in interest rates affect the financial condition of a financial institution to a far greater degree than changes in the inflation rate. While interest rates are greatly influenced by changes in the inflation rate, they do not necessarily change at the same rate or in the same magnitude as the inflation rate.
While interest rates are greatly influenced by changes in the inflation rate, they do not necessarily change at the same rate or in the same magnitude as the inflation rate.
For more information about our derivative financial instruments, see Note 12 — Derivative Financial Instruments in the notes to our consolidated financial statements contained in Part II, Item 8 of this report. Based on the nature of operations, we are not subject to foreign exchange or commodity price risk.
For more information about our derivative financial instruments, see Note 13 — Derivative Financial Instruments in the notes to our consolidated financial statements contained in Part II, Item 8 of this report.
Overall, interest rates on deposits typically experience a lower degree of rate change than changes in market interest rates. This assumption is incorporated into the simulation model and is generally not fully reflected in a gap analysis, meaning that process by which we measure the gap between interest rate sensitive assets versus interest rate sensitive liabilities.
Overall, interest rates on deposits typically experience a lower degree of rate change than changes in market interest rates and this assumption is incorporated into the simulation model.
In determining the appropriate level of interest rate risk, the committee considers the impact on earnings and capital of the current outlook on interest rates, potential changes in interest rates, regional economies, liquidity, business strategies and other factors. 75 Table of Contents The committee meets regularly to review, among other things, the sensitivity of assets and liabilities to interest rate changes, the book and market values of assets and liabilities, unrealized gains and losses, purchase and sale activities, commitments to originate loans and the maturities of investments and borrowings.
The committee meets regularly to review, among other things, the sensitivity of assets and liabilities to interest rate changes, the book and market values of assets and liabilities, unrealized gains and losses, purchase and sale activities, commitments to originate loans and the maturities of investments and borrowings.
Actual results will differ from the model’s simulated results due to timing, magnitude and frequency of interest rate changes, as well as changes in market conditions and the application and timing of various strategies. 76 Table of Contents The FRB sets various benchmark rates, including the federal funds rate, and thereby influences the general market rates of interest, including the loan and deposit rates offered by financial institutions and the fair value of our available for sale securities.
The FRB sets various benchmark rates, including the federal funds rate, and thereby influences the general market rates of interest, including the loan and deposit rates offered by financial institutions and the fair value of our available for sale securities.
Changes in the relative value of money due to inflation or recession are generally not considered. Unlike most industrial companies, virtually all of the assets and liabilities of a financial institution are monetary in nature. As a result, interest rates have a more significant impact on a financial institution’s performance than the general level of inflation.
GAAP, which presently requires us to measure the majority of our financial position and operating results primarily in terms of historic dollars. Changes in the relative value of money due to inflation or recession are generally not considered. Unlike most industrial companies, virtually all of the assets and liabilities of a financial institution are monetary in nature.
However, inflation affects financial institutions by increasing their cost of goods and services purchased, as well as the cost of salaries and benefits, occupancy expense, and similar items. Inflation and related increases in interest rates generally decrease the market value of investments and loans held and may adversely affect liquidity, earnings, and stockholders’ equity.
As a result, interest rates have a more significant impact on a financial institution’s performance than the general level of inflation. However, inflation affects financial institutions by increasing their cost of goods and services purchased, as well as the cost of salaries and benefits, occupancy expense, and similar items.
Removed
On September 18, 2024, the FRB reduced the federal funds target rate range by 50 basis points, to a range of 4.75% to 5.00%, marking the first rate reduction since early 2020. Subsequently, it implemented two additional reductions, with the current federal funds target range set to 4.25% to 4.50% on December 18, 2024.
Added
In determining the appropriate level of interest rate risk, the committee considers the impact on earnings and capital of the current outlook on interest rates and the economy, potential changes in interest rates, liquidity, business strategies and other factors.
Added
Actual results will differ from the model’s simulated results due to timing, magnitude and frequency of interest rate changes, as well as changes in market conditions and the application and timing of various strategies.
Added
Inflation and related increases in interest rates generally decrease the market value of investments and loans held and may adversely affect liquidity, earnings, and stockholders’ equity. In management’s opinion, changes in interest rates affect the financial condition of a financial institution to a far greater degree than changes in the inflation rate.

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