Regional banking company Origin Bancorp (NYSE: OBK) announced better-than-expected revenue in Q4 CY2025, with sales up 15% year on year to $103.4 million. Its GAAP profit of $0.95 per share was 10.7% above analysts’ consensus estimates.
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Origin Bancorp (OBK) Q4 CY2025 Highlights:
- Net Interest Income: $86.69 million vs analyst estimates of $84.47 million (10.7% year-on-year growth, 2.6% beat)
- Net Interest Margin: 3.7% vs analyst estimates of 3.7% (7.8 basis point beat)
- Revenue: $103.4 million vs analyst estimates of $100.3 million (15% year-on-year growth, 3.1% beat)
- Efficiency Ratio: 60.7% vs analyst estimates of 60.9% (16 basis point beat)
- EPS (GAAP): $0.95 vs analyst estimates of $0.86 (10.7% beat)
- Tangible Book Value per Share: $35.04 vs analyst estimates of $34.64 (11.7% year-on-year growth, 1.2% beat)
- Market Capitalization: $1.27 billion
“This quarter we reported diluted earnings per share of $0.95 and net income of $29.5 million, which drives a return on average assets of 1.19% for the quarter, well above the targeted 1.0%-plus run rate that we outlined as our near term target last January,” said Drake Mills, chairman, president and CEO of Origin Bancorp, Inc.
Company Overview
Founded in 1912 during the early boom days of Louisiana banking, Origin Bancorp (NYSE: OBK) is a financial holding company that provides personalized banking services to businesses, municipalities, and individuals across Texas, Louisiana, and Mississippi.
Sales Growth
Net interest income and and fee-based revenue are the two pillars supporting bank earnings. The former captures profit from the gap between lending rates and deposit costs, while the latter encompasses charges for banking services, credit products, wealth management, and trading activities. Unfortunately, Origin Bancorp’s 9% annualized revenue growth over the last five years was mediocre. This was below our standard for the banking sector and is a poor baseline for our analysis.
Long-term growth is the most important, but within financials, a half-decade historical view may miss recent interest rate changes and market returns. Origin Bancorp’s recent performance shows its demand has slowed as its annualized revenue growth of 7.5% over the last two years was below its five-year trend. 
Note: Quarters not shown were determined to be outliers, impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business.
This quarter, Origin Bancorp reported year-on-year revenue growth of 15%, and its $103.4 million of revenue exceeded Wall Street’s estimates by 3.1%.
Net interest income made up 82.6% of the company’s total revenue during the last five years, meaning Origin Bancorp barely relies on non-interest income to drive its overall growth.
While banks generate revenue from multiple sources, investors view net interest income as the cornerstone - its predictable, recurring characteristics stand in sharp contrast to the volatility of non-interest income.
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Tangible Book Value Per Share (TBVPS)
The balance sheet drives banking profitability since earnings flow from the spread between borrowing and lending rates. As such, valuations for these companies concentrate on capital strength and sustainable equity accumulation potential.
When analyzing banks, tangible book value per share (TBVPS) takes precedence over many other metrics. This measure isolates genuine per-share value by removing intangible assets of debatable liquidation worth. On the other hand, EPS is often distorted by mergers and flexible loan loss accounting. TBVPS provides clearer performance insights.
Origin Bancorp’s TBVPS grew at a decent 6% annual clip over the last five years. TBVPS growth has accelerated recently, growing by 10.5% annually over the last two years from $28.68 to $35.04 per share.
Over the next 12 months, Consensus estimates call for Origin Bancorp’s TBVPS to grow by 8% to $37.83, paltry growth rate.
Key Takeaways from Origin Bancorp’s Q4 Results
We enjoyed seeing Origin Bancorp beat analysts’ revenue expectations this quarter. We were also glad its net interest income outperformed Wall Street’s estimates. Overall, we think this was a decent quarter with some key metrics above expectations. The stock traded up 3.4% to $42.13 immediately after reporting.
Origin Bancorp had an encouraging quarter, but one earnings result doesn’t necessarily make the stock a buy. Let’s see if this is a good investment. When making that decision, it’s important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here (it’s free).
