Origin Bancorp: Sandler O'Neill starts with 'hold'

Origin Bancorp

04/06/2018 17:32

** Brokerage Sandler O'Neill initiates coverage with 'hold'
rating citing the regional bank's dominant market share coupled
with higher growth markets of Dallas, Houston, and Jackson
    ** "We like OBNK's potential for improving its profitability
due to growth and net interest margin (NIM) expansion over the
next three years" writes Sandler O'Neill analyst Brad Milsaps in
a note 
    ** Company, which dates back to 1912, has seen most of the
growth since CEO Drake Mills took over in 2003 - Sandler O'Neill
    ** Mills have embarked on a primarily organic growth plan
focused on expanding outside its legacy LA markets with new
branches, team lift-outs, and strategic acquisitions - Milsaps
    ** Assets have increased to over $4.2 billion from $400
million since Mills has taken over 
    ** OBNK trades at 16x of brokerage's 2019 estimate versus
13.7x for peers - Sandler O'Neill note
    ** Up to Friday's close, stock had risen 2.43 pct since its
IPO on May 9

 (Reporting by Diptendu Lahiri)
 ((RM: diptendu.lahiri.thomsonreuters.com@reuters.net))