Origin Bancorp in Ruston, La., reported significantly lower quarterly earnings due to its exposure to TriColor Holdings.
The $9.8 billion-asset company said in a press release that its third-quarter profit fell 54% from a year earlier, to $8.6 milli0n. The quarter included a $36.8 million loan-loss provision that “was primarily related to the suspected borrower fraud impacting” the loan relationship with Tricolor.
The quarter included $28.4 million net chargeoffs tied to Tricolor. “We are pursuing all possible opportunities for recovery,” the company said in the release.
Origin disclosed in a separate regulatory filing that it has four outstanding residential mortgage loans to former Tricolor executives with a total outstanding balance of $16.2 million. The loans have a weighted average loan-to-value of about 58%; none has a LTV greater than 80%. Each of the loans is currently performing, and Origin does not anticipate loss exposure.