Regional banking company Origin Bancorp (NYSE: OBK) missed Wall Street’s revenue expectations in Q2 CY2025, with sales falling 13.3% year on year to $83.5 million. Its GAAP profit of $0.47 per share was 39.6% below analysts’ consensus estimates.
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Origin Bancorp (OBK) Q2 CY2025 Highlights:
- Net Interest Income: $82.14 million vs analyst estimates of $81.49 million (11.2% year-on-year growth, 0.8% beat)
- Net Interest Margin: 3.6% vs analyst estimates of 3.5% (44 basis point year-on-year increase, 13.6 bps beat)
- Revenue: $83.5 million vs analyst estimates of $97.65 million (13.3% year-on-year decline, 14.5% miss)
- Efficiency Ratio: 74.2% vs analyst estimates of 63% (11.2 percentage point miss)
- EPS (GAAP): $0.47 vs analyst expectations of $0.78 (39.6% miss)
- Market Capitalization: $1.18 billion
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.
Over the last five years, Origin Bancorp grew its revenue at a solid 8.3% compounded annual growth rate. Its growth beat the average bank company and shows its offerings resonate with customers.
We at StockStory place the most emphasis on long-term growth, but within financials, a half-decade historical view may miss recent interest rate changes, market returns, and industry trends. Origin Bancorp’s recent performance marks a sharp pivot from its five-year trend as its revenue has shown annualized declines of 2.8% over the last two years. 
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 missed Wall Street’s estimates and reported a rather uninspiring 13.3% year-on-year revenue decline, generating $83.5 million of revenue.
Net interest income made up 83.7% 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)
Banks are balance sheet-driven businesses because they generate earnings primarily through borrowing and lending. They’re also valued based on their balance sheet strength and ability to compound book value (another name for shareholders’ equity) over time.
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. EPS can become murky due to acquisition impacts or accounting flexibility around loan provisions, and TBVPS resists financial engineering manipulation.
Origin Bancorp’s TBVPS grew at a solid 6.1% annual clip over the last five years. TBVPS growth has also accelerated recently, growing by 11.7% annually over the last two years from $26.71 to $33.33 per share.
Over the next 12 months, Consensus estimates call for Origin Bancorp’s TBVPS to grow by 7.9% to $35.98, decent growth rate.
Key Takeaways from Origin Bancorp’s Q2 Results
It was good to see Origin Bancorp narrowly top analysts’ net interest income, NIM, and tangible book value per share expectations this quarter. On the other hand, its revenue, EPS, and efficiency ratio fell short of Wall Street’s estimates. Overall, this quarter could have been better. The stock remained flat at $37.66 immediately after reporting.
Is Origin Bancorp an attractive investment opportunity at the current price? If you’re making that decision, you should consider the bigger picture of valuation, business qualities, as well as the latest earnings. We cover that in our actionable full research report which you can read here, it’s free.
