NasdaqGS:OBNK

Stock Analysis Report

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.

Snowflake

Fundamentals

Flawless balance sheet and overvalued.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

1.2%

OBNK

3.4%

US Banks

0.4%

US Market


1 Year Return

-3.9%

OBNK

11.9%

US Banks

11.4%

US Market

Return vs Industry: OBNK underperformed the US Banks industry which returned 11.9% over the past year.

Return vs Market: OBNK underperformed the US Market which returned 11.4% over the past year.


Shareholder returns

OBNKIndustryMarket
7 Day1.2%3.4%0.4%
30 Day-2.1%3.8%0.3%
90 Day-1.4%3.3%-1.2%
1 Year-3.3%-3.9%15.2%11.9%13.9%11.4%
3 Yearn/a54.5%43.8%47.2%37.6%
5 Yearn/a69.9%51.4%62.4%44.6%

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?

15.19x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: OBNK ($33.42) is trading above our estimate of fair value ($19.39)

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 (15.2x) compared to the Banks industry average (12.6x).

PE vs Market: OBNK is good value based on its PE Ratio (15.2x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

PEG Ratio: OBNK is poor value based on its PEG Ratio (2.1x)


Price to Book Ratio

PB vs Industry: OBNK is overvalued based on its PB Ratio (1.4x) compared to the US Banks industry average (1.2x).


Next Steps

Future Growth

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

7.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: OBNK's forecast earnings growth (7.1% per year) is above the savings rate (2.7%).

Earnings vs Market: OBNK's earnings (7.1% per year) are forecast to grow slower than the US market (14.3% per year).

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

Revenue vs Market: OBNK's revenue (7.1% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: OBNK's revenue (7.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if OBNK's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Origin Bancorp performed over the past 5 years?

110.5%

Last years earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if OBNK's year-on-year earnings growth rate was positive over the past 5 years.

Accelerating Growth: Insufficient data to compare OBNK's past year earnings growth to its 5-year average.

Earnings vs Industry: OBNK earnings growth over the past year (110.5%) exceeded the Banks industry 29.2%.


Return on Equity

High ROE: OBNK's Return on Equity (8.9%) is considered low.


Return on Assets

ROA vs Industry: OBNK's Return on Assets is below or equal to the Banks industry average last year.


Return on Capital Employed

ROCE Improving: Insufficient data to calculate OBNK's Return on Capital Employed to determine if it has improved over the past 3 years.


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

Inventory Level: OBNK has a low level of unsold assets or inventory.

Debt Coverage by Assets: OBNK's debt is not covered by short term assets (assets are 0.6x debt).


Financial Institutions Analysis

Asset Level: OBNK's level of assets compared to its equity is low.

Allowance for Bad Loans: OBNK has a sufficient allowance for bad loans.

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

Loan Level: OBNK has an acceptable proportion of non-loan assets held.

Low Risk Deposits: OBNK's loans are broadly funded by customer deposits.

Level of Bad Loans: OBNK has an appropriate level of bad loans (0.82%)


Next Steps

Dividend

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

1.11%

Current Dividend Yield


Dividend Yield vs Market

company1.1%marketbottom25%1.4%markettop25%3.7%industryaverage2.9%forecastin3Years0.7%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: OBNK's dividend (1.11%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: OBNK's dividend (1.11%) is low compared to the top 25% of dividend payers in the US market (3.68%).

Stable Dividend: Too early to tell whether OBNK's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if OBNK's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (5.9%), OBNK's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of Origin Bancorp's salary, the management and board of directors tenure and is there insider trading?

0.8yrs

Average management tenure


CEO

Drake Mills (58yo)

11.8yrs

Tenure

US$2,344,146

Compensation

Mr. Drake D. Mills has been the Chief Executive Officer of Origin Bank since January 2003 and also serves as its Director. Mr. Mills has been the Chairman of Origin Bancorp, Inc. since 2012 and also has be ...


CEO Compensation Analysis

Compensation vs. Market: Insufficient data to establish whether Drake's total compensation is reasonable compared to companies of similar size in the US market.

Compensation vs Earnings: Drake's compensation has increased by more than 20% in the past year.


Management Age and Tenure

0.8yrs

Average Tenure

58yo

Average Age

Experienced Management: OBNK's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.


Board Age and Tenure

7.8yrs

Average Tenure

63.5yo

Average Age

Experienced Board: OBNK's board of directors are considered experienced (7.8 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellUS$15,64504 Dec 18
F. Myrick
EntityIndividual
Role
Member of the Board of Directors
Director
Shares420
Max PriceUS$37.25

Ownership Breakdown


Management Team

  • Drake Mills (58yo)

    Chairman

    • Tenure: 11.8yrs
    • Compensation: US$2.34m
  • Steve Brolly (56yo)

    Chief Financial Officer

    • Tenure: 0yrs
    • Compensation: US$992.45k
  • Russ Chase

    Chief Community Banking Officer of Origin Bank

    • Tenure: 0.8yrs
  • Linda Tuten

    Chief Human Resource Officer

    • Tenure: 0yrs
  • Cary Davis (67yo)

    Chief Risk Officer

    • Tenure: 0yrs
  • Chris Reigelman

    Investor Relations

    • Tenure: 0yrs
  • Lonnie Scarborough

    Chief Dream Manager & Talent Development Officer of Origin Bank

    • Tenure: 0.8yrs

Board Members

  • Drake Mills (58yo)

    Chairman

    • Tenure: 11.8yrs
    • Compensation: US$2.34m
  • Jim D'Agostino (72yo)

    Lead Independent Director

    • Tenure: 0yrs
    • Compensation: US$96.12k
  • James Davison (52yo)

    Independent Director

    • Tenure: 20.8yrs
    • Compensation: US$80.13k
  • F. Myrick (75yo)

    Director

    • Tenure: 14.8yrs
    • Compensation: US$405.03k
  • John Emory

    Chairman Emeritus

    • Tenure: 0yrs
  • Richard Shirley

    Director

    • Tenure: 0yrs
  • Gary Luffey (64yo)

    Independent Director

    • Tenure: 3.8yrs
    • Compensation: US$77.19k
  • Michael Jones (63yo)

    Independent Director

    • Tenure: 28.8yrs
    • Compensation: US$82.31k
  • George Snellings (53yo)

    Independent Director

    • Tenure: 7.8yrs
    • Compensation: US$77.99k
  • Farrell Malone (66yo)

    Independent Director

    • Tenure: 5.8yrs
    • Compensation: US$92.13k

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$784.509m
  • Shares outstanding: 23.47m
  • 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 Analysis2019/10/24 01:00
End of Day Share Price2019/10/23 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.