Origin Bancorp, Inc. (OBK)

Origin Bancorp, Inc. - Comprehensive Overview

Company Profile:

Detailed history and background:

Origin Bancorp, Inc. (OBNK) is a bank holding company headquartered in Ruston, Louisiana, operating through its wholly-owned subsidiary, Origin Bank. Founded in 1912, Origin Bank initially served North Central Louisiana and later expanded through acquisitions across the Southeast. In 2014, the company converted from a mutual holding company to a stock holding company and completed its initial public offering.

Core Business Areas:

• Commercial Banking: Origin Bank provides various loan and deposit products and services to small and medium-sized businesses.
• Retail Banking: Offers personal banking services, including checking and savings accounts, consumer loans, and credit cards.
• Wealth Management: Delivers investment, retirement, and trust services to individuals and families.
• Mortgage Lending: Provides residential mortgage origination, servicing, and warehousing.

Leadership Team and Corporate Structure:

• Chairman, President & CEO: Drake Mills
• Executive Vice President & Chief Financial Officer: Monty Montgomery
• Executive Vice President & Chief Operating Officer: Marc Webre
• Executive Vice President & Chief Credit Officer: Kyle Williams
• Board of Directors: Composed of 12 individuals with expertise in finance, banking, and law.

Top Products and Market Share:

• Commercial Loans: Origin Bank holds a significant market share in its primary markets, particularly in Louisiana and Texas, offering competitive rates and tailored loan solutions.
• Retail Deposits: The bank attracts customers with competitive interest rates on checking and savings accounts.
• Wealth Management: Origin Bank offers comprehensive wealth management solutions, but its market share in this segment is relatively small compared to larger national players.

Total Addressable Market:

The U.S. banking industry represents a vast market, with total assets exceeding $20 trillion. Origin Bancorp primarily focuses on the southern and southeastern states, where the community banking market is estimated at over $2 trillion.

Financial Performance:

Recent Financial Statements:

• Revenue: $224.4 million (2022)
• Net Income: $32.6 million (2022)
• Profit Margin: 14.5% (2022)
• EPS: $2.61 (2022)

Year-over-Year Performance:

• Revenue increased by 8.5% compared to 2021.
• Net income increased by 12.3% compared to 2021.
• Profit margin remained relatively stable.
• EPS increased by 11.8% compared to 2021.

Cash Flow and Balance Sheet:

Origin Bancorp maintains a healthy cash flow position and strong capital ratios, indicating financial stability.

Dividends and Shareholder Returns:

Dividend History:

• The company has a consistent dividend payout history with a current annual dividend yield of 3.3%.
• The payout ratio is around 35%, indicating room for future dividend increases.

Shareholder Returns:

• Over the past year, Origin Bancorp stock has generated a total return of 12.5%.
• Over the past five years, the total return is approximately 58%.

Growth Trajectory:

Historical Growth:

Origin Bancorp has experienced steady growth in recent years, driven by organic expansion and strategic acquisitions.

Future Projections:

Analysts expect continued moderate growth in earnings, driven by loan and deposit growth and improved efficiency.

Growth Initiatives:

• Expanding into new markets.
• Launching innovative digital banking solutions.
• Pursuing strategic partnerships.

Market Dynamics:

The banking industry is characterized by increasing competition, technological advancements, and regulatory changes. Origin Bancorp is well-positioned to adapt to these changes due to its strong local presence, diversified business model, and focus on customer service.

Competitors:

• First Horizon National Corp. (FHN): 3.2% market share
• Regions Financial Corp. (RF): 2.8% market share
• Iberiabank Corp. (IBKC): 2.5% market share
• BBVA USA Bancshares, Inc. (BBVA): 2.2% market share

Competitive Advantages:

• Strong local market presence.
• Diversified revenue streams.
• Focus on customer service.
• Strong capital position.

Challenges and Opportunities:

Challenges:

• Competition from larger national banks.
• Rising interest rates.
• Technological disruption.

Opportunities:

• Expanding into new markets.
• Developing innovative digital solutions.
• Pursuing strategic partnerships.

Recent Acquisitions (Last 3 Years):

• 2021: Acquired CommunitySouth Bank & Trust in LaPlace, Louisiana, to expand its footprint in the New Orleans metropolitan area.
• 2022: Acquired The First State Bank of Texas in Nacogdoches, Texas, to strengthen its presence in East Texas.

AI-Based Fundamental Rating:

Rating: 7/10

Justification: Origin Bancorp has strong fundamentals, with a healthy financial position, a growing market share, and a consistent dividend payout history. However, its relatively small size and limited geographical reach pose challenges for future growth.

Sources and Disclaimers:

• Origin Bancorp Investor Relations: https://ir.origin.bank/
• SEC Filings: https://www.sec.gov/edgar/search/?company=origin+bancorp
• YCharts: https://ycharts.com/companies/OBNK
• Please note that this analysis is for informational purposes only and should not be considered investment advice. Always consult with a qualified financial advisor before making investment decisions.