Origin Bancorp earnings rose to $37.8 million, or $1.22 per diluted share, in the third quarter of 2026, up from $33.8 million, or $1.09 per share, in the preceding quarter.

Origin Bancorp earnings and interest income

The Ruston, Louisiana-based parent of Origin Bank reported on October 28 that net interest income increased to $95.1 million for the quarter ended September 30, up $2.9 million from the second quarter.

Origin said the increase reflected $4.3 million in additional interest income, partly offset by a $1.4 million rise in interest expense. Higher average loan balances and an extra calendar day contributed to the increase in loan interest income.

The fully tax-equivalent net interest margin reached 3.94%, up from 3.92% in Origin’s second-quarter results. Noninterest income rose $2.7 million to $18.1 million, primarily because of higher equity method investment income and insurance commissions.

Credit costs and loan quality

The provision for credit losses rose to $2.6 million from $65,000 in the second quarter. Origin attributed the increase primarily to new loan production and higher net charge-offs, partly offset by improvements in credit migration.

Loans held for investment totaled $8.09 billion at September 30, up 0.3% from June 30. Nonperforming loans held for investment fell to $72.5 million from $78.5 million, while loans 30 to 89 days past due and still accruing increased to $10.3 million from $5.2 million.

Dividend increase and profitability target

Origin said its board approved an increase in the quarterly dividend to $0.28 per share from $0.25 in October. The company repurchased 272,927 shares during the third quarter at an average price of $54.21, including commissions and applicable excise taxes. It had $106.8 million remaining under its repurchase program at September 30.

Annualized return on average assets was 1.47% in the third quarter. Separately, Origin has a near-term target for a return on average assets run rate of at least 1.15% by the fourth quarter of 2026.

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