Origin Bancorp, Inc. reported net income of $18.6 million, or $0.60 diluted earnings per share, for the quarter ended September 30, 2024. This compares to net income of $21.0 million, or $0.67 diluted earnings per share, for the prior linked quarter.
Pre-tax, pre-provision earnings for the quarter were $28.3 million, down from $32.0 million in the linked quarter. Net interest income increased by $914,000, or 1.2%, to $74.8 million compared to the linked quarter, with $813,000 of this increase attributed to one additional day in the quarter.
The fully tax-equivalent net interest margin (NIM-FTE) was 3.18% for the quarter, representing a one-basis-point increase compared to the linked quarter. The average rate on loans held for investment (LHFI) increased to 6.67% from 6.58% in the linked quarter.
Credit quality indicators showed improvement, with past due LHFI decreasing by $27.4 million to $38.8 million compared to June 30, 2024. Nonperforming LHFI decreased by $11.5 million, reducing the percentage of nonperforming LHFI to total LHFI to 0.81% from 0.95% in the linked quarter.
Noninterest income decreased by $6.5 million, or 28.8%, to $16.0 million from the linked quarter, primarily due to a $5.2 million decrease in the change in fair value of equity investments. Noninterest expense decreased by $1.9 million, or 2.9%, to $62.5 million, mainly due to a $1.6 million decrease in other noninterest expense.
The Federal Reserve Board reduced the federal funds target rate range by 50 basis points on September 18, 2024, to a range of 4.75% to 5.00%. Management noted that an investigation into questioned activity involving a former banker remains ongoing, but any ultimate loss is not expected to be material to the financial position.
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