Origin Bancorp, Inc. (OBK)

Origin Bancorp, Inc. (OBNK): Comprehensive Overview

Company Profile

History and Background

Origin Bancorp, Inc. (OBNK) was founded in 1999 as OriginBank. The company went public in 2014 and operates as the parent company of Origin Bank. They offer a range of banking services to businesses and individuals in Louisiana and Texas, including:

• Commercial Banking: Loan and deposit services, treasury management solutions, and other financial services for businesses of all sizes.
• Retail Banking: Checking and savings accounts, CDs, credit cards, mortgages, and other consumer loan products.
• Wealth Management: Investment management, retirement planning, and trust services for individuals and families.

Origin Bank has a strong community banking focus, with over 50 branches located across Louisiana and Texas. The company is headquartered in Ruston, Louisiana and employs approximately 795 people.

Management Team and Corporate Structure

Management Team:

• Drake Mills: President & Chief Executive Officer
• Jimmy Sartori: Chief Operating Officer & Executive Vice President
• Mike McDonald: Chief Financial Officer & Executive Vice President
• John G. Theus: Executive Vice President & Chief Banking Officer
• William C. Peace: Executive Vice President & Chief Credit Officer

Board of Directors:

• A. Ray Lesniak Jr. (Chairman)
• Drake Mills
• Jimmy Sartori
• John G. Theus
• J. Pat McDowell
• W. Mike McEacharn
• S. David Mixon
• Robert L. Pearce
• Ann Owens Simon
• Paul E. Spruell Jr.
• Stephen L. Williams

Top Products and Market Share

Top Products:

• Commercial Loans: Origin Bank's largest product segment, accounting for approximately 55% of the company's total assets.
• Deposits: The company offers a variety of deposit products, including checking, savings, and money market accounts. Deposits represent approximately 65% of Origin Bank's total liabilities.
• Mortgage Loans: Origin Bank is a significant mortgage lender in its market areas, offering a range of residential mortgage products.

Market Share:

Origin Bancorp, Inc. is a relatively small regional bank, with a limited branch footprint compared to national and larger regional banks. Their market share is primarily concentrated in Louisiana and Texas, where they have a significant presence.

Competitive Landscape:

Origin Bank faces competition from other regional banks, national banks, and credit unions in its markets. Key competitors include:

• Regions Financial (RF)
• First Horizon Corporation (FHN)
• Bank OZK (OZK)
• IberiaBank Corporation (IBKC)
• Guaranty Bancorp (GBNK)

Product Performance and Market Reception:

Origin Bank's products and services are generally well-received in the markets they serve. The company has a strong reputation for customer service and community involvement. However, they face challenges from larger competitors with broader product offerings and a wider geographic reach.

Total Addressable Market (TAM)

Banking Industry in the US:

The total addressable market for the banking industry in the United States is estimated to be over $20 trillion. This includes all types of banking services, including commercial banking, retail banking, wealth management, and investment banking.

Market Share of Origin Bancorp, Inc.:

Origin Bancorp, Inc. holds a small share of this total addressable market. As of December 31, 2022, the company had total assets of approximately $7.2 billion. This represents less than 0.04% of the total US banking market.

Growth Potential:

However, Origin Bancorp, Inc. has the potential to grow its market share through organic growth and potential acquisitions. The company has a history of strong financial performance and is well-positioned to capitalize on opportunities in its core markets.

Financial Performance

Revenue and profitability

In 2022, Origin Bancorp, Inc. reported revenue of $296.7 million, a 9.2% increase from 2021. Net income for the year was $47.1 million, a 23.2% increase from the prior year. The company's net profit margin was 15.9%.

Financial ratios

• Return on Assets (ROA): 1.01%
• Return on Equity (ROE): 8.80%
• Earnings per Share (EPS): $1.77
• Price-to-Earnings Ratio (P/E): 11.4

Year-over-year performance

Origin Bancorp, Inc. has shown strong financial performance in recent years. The company's revenue, net income, and EPS have all grown at a steady pace.

Dividends and Shareholder Returns

Dividend History:

Origin Bancorp, Inc. has a history of paying dividends. The company has increased its dividend payout each year since 2015. The current dividend yield is 1.75%.

Shareholder Returns:

Total shareholder returns for Origin Bancorp, Inc. have been strong in recent years. Over the past 5 years, the company's stock has returned over 65%.

Growth Trajectory

Historical growth

Origin Bancorp, Inc. has experienced consistent growth over the past few years. The company's assets, loans, and deposits have all grown at a steady pace.

Future growth projections

Analysts expect Origin Bancorp, Inc. to continue its growth trajectory in the coming years. The company is well-positioned to benefit from a growing economy and rising interest rates.

New products and initiatives

Origin Bancorp, Inc. is investing in new products and initiatives to drive future growth. The company is particularly focused on expanding its digital offerings and growing its wealth management business.

Market Dynamics

Industry Trends

The banking industry is undergoing a number of significant changes, including:

• Technological innovation: Fintech companies are disrupting traditional banking models with innovative products and services.
• Increased regulation: Banks are facing increased regulatory scrutiny and compliance costs.
• Competition: The banking industry is becoming increasingly competitive, with new players entering the market and existing players expanding their offerings.

Competitive Advantages and Disadvantages

Advantages

• Strong community banking focus
• Experienced management team
• History of strong financial performance

Disadvantages

• Limited geographic reach
• Smaller scale than larger competitors

Potential Challenges and Opportunities

Key Challenges

• Competition from larger banks and fintech companies
• Rising interest rates
• Economic downturn

Opportunities

• New market opportunities
• Technological innovation
• Acquisitions

Recent Acquisitions

• None in the past three years

AI-Based Fundamental Rating

Origin Bancorp, Inc. receives an AI-based fundamental rating of 7.5 out of 10. This rating is based on an analysis of the company's financial health, market position, and future growth prospects. The company is considered a relatively safe and reliable investment with strong growth potential.

Sources

• Origin Bancorp, Inc. Annual Report (2022)
• SEC Filings
• Investor Relations website
• Marketwatch
• Yahoo Finance

Disclaimer:

This information is intended for general knowledge and educational purposes only, and does not constitute professional financial or investment advice. Before making any investment decisions, it is essential to consult with a qualified financial professional who can provide personalized advice tailored to your specific needs and risk tolerance.