Does Higher Net Interest Income With Lower Charge-Offs Reinforce Origin Bancorp's Capital Discipline Story (OBK)?

• Origin Bancorp released its second quarter 2025 results, announcing a year-over-year increase in net interest income to US$82.14 million, a decline in net income to US$14.65 million, a quarterly dividend affirmation, and the completion of a share repurchase program.
• An interesting point is that while net interest income grew, the decrease in net charge-offs to US$2.3 million signals some improvement in credit quality compared to the previous year.
• We'll now explore how the combination of higher net interest income and continued capital returns impacts Origin Bancorp's investment narrative.

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Origin Bancorp Investment Narrative Recap

To be a shareholder in Origin Bancorp, you need to believe in its ability to drive steady growth through expanding net interest income, prudent credit management, and active capital returns, even as margins remain in focus. The latest results, showing higher net interest income but lower net income, haven't materially shifted the biggest near-term catalyst, improved efficiency initiatives under the Optimize Origin program, or the key risk, which continues to be pressure on net interest margins from rising deposit costs.

Among the recent developments, the affirmation of a quarterly dividend at US$0.15 per share stands out as highly relevant. This regular return of capital to shareholders highlights management’s confidence in operational stability and supports the investment thesis focused on consistent income, even as efficiency gains and credit trends remain under watch.

Yet, while the core business shows positive movement, investors need to be mindful that rising deposit competition could quickly...

Read the full narrative on Origin Bancorp (it's free!)

Origin Bancorp's outlook anticipates $471.7 million in revenue and $142.9 million in earnings by 2028. This scenario is based on expected annual revenue growth of 10.3% and an earnings increase of $66.6 million from current earnings of $76.3 million.

Uncover how Origin Bancorp's forecasts yield a $41.00 fair value, a 8% upside to its current price.

Exploring Other Perspectives

One member of the Simply Wall St Community valued Origin Bancorp shares at US$67.01, suggesting a view of significant undervaluation. However, deposit competition remains a risk that could shape the company’s future earnings, so consider other viewpoints to form a fuller picture.

Explore another fair value estimate on Origin Bancorp - why the stock might be worth as much as 76% more than the current price!

Build Your Own Origin Bancorp Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Origin Bancorp research is our analysis highlighting 2 key rewards that could impact your investment decision.
• Our free Origin Bancorp research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Origin Bancorp's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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