NasdaqGS:OBNK

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

Origin Bancorp, Inc. operates as the holding company for Origin Bank that provides banking and financial services to small and medium-sized businesses, municipalities, high net worth individuals, and retail clients in Louisiana, Texas, and Mississippi. More Details


Snowflake Analysis

Flawless balance sheet second-rate dividend payer.


Similar Companies

Share Price & News

How has Origin Bancorp's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: OBNK has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-8.4%

OBNK

-3.8%

US Banks

-3.1%

US Market


1 Year Return

-41.2%

OBNK

-28.4%

US Banks

12.7%

US Market

Return vs Industry: OBNK underperformed the US Banks industry which returned -28.4% over the past year.

Return vs Market: OBNK underperformed the US Market which returned 12.7% over the past year.


Shareholder returns

OBNKIndustryMarket
7 Day-8.4%-3.8%-3.1%
30 Day-14.9%-2.9%-2.9%
90 Day-4.1%-2.3%8.2%
1 Year-40.4%-41.2%-25.8%-28.4%15.3%12.7%
3 Yearn/a-18.3%-25.0%37.8%28.5%
5 Yearn/a19.0%4.3%90.9%69.4%

Price Volatility Vs. Market

How volatile is Origin Bancorp's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Origin Bancorp undervalued compared to its fair value and its price relative to the market?

14.35x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: OBNK ($20.37) is trading above our estimate of fair value ($12.8)

Significantly Below Fair Value: OBNK is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: OBNK is poor value based on its PE Ratio (14.4x) compared to the US Banks industry average (9.5x).

PE vs Market: OBNK is good value based on its PE Ratio (14.4x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: OBNK is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: OBNK's PB Ratio (0.8x) is in line with the US Banks industry average.


Next Steps

Future Growth

How is Origin Bancorp forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

15.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: OBNK's forecast earnings growth (15.3% per year) is above the savings rate (2.2%).

Earnings vs Market: OBNK's earnings (15.3% per year) are forecast to grow slower than the US market (23.1% per year).

High Growth Earnings: OBNK's earnings are forecast to grow, but not significantly.

Revenue vs Market: OBNK's revenue is expected to decline over the next 3 years (-0.9% per year).

High Growth Revenue: OBNK's revenue is forecast to decline over the next 3 years (-0.9% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: OBNK's Return on Equity is forecast to be low in 3 years time (6.4%).


Next Steps

Past Performance

How has Origin Bancorp performed over the past 5 years?

35.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: OBNK has high quality earnings.

Growing Profit Margin: OBNK's current net profit margins (17.8%) are lower than last year (25.3%).


Past Earnings Growth Analysis

Earnings Trend: OBNK's earnings have grown significantly by 35.4% per year over the past 5 years.

Accelerating Growth: OBNK's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: OBNK had negative earnings growth (-36.1%) over the past year, making it difficult to compare to the Banks industry average (-3%).


Return on Equity

High ROE: OBNK's Return on Equity (5.4%) is considered low.


Next Steps

Financial Health

How is Origin Bancorp's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet


Financial Institutions Analysis

Asset Level: OBNK's Assets to Equity ratio (10.8x) is moderate.

Allowance for Bad Loans: OBNK has a sufficient allowance for bad loans (229%).

Low Risk Liabilities: 89% of OBNK's liabilities are made up of primarily low risk sources of funding.

Loan Level: OBNK has an appropriate level of Loans to Assets ratio (79%).

Low Risk Deposits: OBNK's Loans to Deposits ratio (98%) is appropriate.

Level of Bad Loans: OBNK has an appropriate level of bad loans (0.6%).


Next Steps

Dividend

What is Origin Bancorp current dividend yield, its reliability and sustainability?

1.82%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: OBNK's dividend (1.82%) is higher than the bottom 25% of dividend payers in the US market (1.71%).

High Dividend: OBNK's dividend (1.82%) is low compared to the top 25% of dividend payers in the US market (4.88%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, OBNK has been paying a dividend for less than 10 years.

Growing Dividend: OBNK's dividend payments have increased, but the company has only paid a dividend for 2 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (26.1%), OBNK's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: OBNK's dividends in 3 years are forecast to be well covered by earnings (20.5% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.7yrs

Average management tenure


CEO

Drake Mills (58 yo)

12.67yrs

Tenure

US$1,647,587

Compensation

Mr. Drake D. Mills has been Director of Origin Bank and has been its Chairman of the Board. Mr. Mills had been the Chief Executive Officer of Origin Bank since January 2003. Mr. Mills has been the Chairman ...


CEO Compensation Analysis

Compensation vs Market: Drake's total compensation ($USD1.65M) is about average for companies of similar size in the US market ($USD2.02M).

Compensation vs Earnings: Drake's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Drake Mills
Chairman12.67yrsUS$1.65m0.48%
$ 2.3m
Stephen Brolly
Senior Executive Officer & CFOno dataUS$769.82k0.056%
$ 268.4k
Cary Davis
Senior Executive Officer & Executive Risk Officerno dataUS$579.31k0.24%
$ 1.2m
Chris Reigelman
Investor Relationsno datano datano data
Linda Tuten
Chief Human Resource Officerno datano datano data
Russell Chase
Chief Community Banking Officer of Origin Bank1.67yrsno datano data
Lonnie Scarborough
Chief Dream Manager & Talent Development Officer of Origin Bank1.67yrsno datano data
Jim Crotwell
Corporate Secretaryno datano datano data
Preston Moore
Chief Credit & Banking Officer of Origin Bankno datano datano data

1.7yrs

Average Tenure

58yo

Average Age

Experienced Management: OBNK's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Drake Mills
Chairman12.67yrsUS$1.65m0.48%
$ 2.3m
Stacey Goff
Independent Director0.67yrno data0.011%
$ 50.3k
James D'Agostino
Lead Independent Directorno dataUS$98.06k0.17%
$ 827.7k
James Davison
Director21.67yrsUS$74.72k2.84%
$ 13.6m
F. Myrick
Director15.67yrsUS$449.02k0.59%
$ 2.8m
Richard Gallot
Independent Director1.42yrsUS$59.69k0.013%
$ 60.0k
Elizabeth Solender
Independent Director4.67yrsUS$75.39k0.059%
$ 282.3k
Steven Taylor
Independent Director4.67yrsUS$69.06k0.21%
$ 989.4k
Gary Luffey
Independent Director4.67yrsUS$69.73k0.65%
$ 3.1m
Michael Jones
Independent Director29.67yrsUS$77.39k0.89%
$ 4.2m
George Snellings
Independent Director8.67yrsUS$72.39k0.10%
$ 486.8k
Farrell Malone
Independent Director7.67yrsUS$88.72k0.028%
$ 133.6k

7.7yrs

Average Tenure

64.5yo

Average Age

Experienced Board: OBNK's board of directors are considered experienced (7.7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Origin Bancorp, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Origin Bancorp, Inc.
  • Ticker: OBNK
  • Exchange: NasdaqGS
  • Founded: 1912
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$478.720m
  • Shares outstanding: 23.50m
  • Website: https://www.origin.bank

Number of Employees


Location

  • Origin Bancorp, Inc.
  • 500 South Service Road East
  • Ruston
  • Louisiana
  • 71270
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
OBNKNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDMay 2018

Biography

Origin Bancorp, Inc. operates as the holding company for Origin Bank that provides banking and financial services to small and medium-sized businesses, municipalities, high net worth individuals, and retai ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/23 06:24
End of Day Share Price2020/09/22 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.