Origin Bancorp finds material weakness in internal controls

Origin Bancorp (OBK) disclosed this morning that after discussion with Forvis Mazars, its independent registered accounting firm, it has identified a material weakness in the company’s internal controls over financial reporting relating to controls over employees’ ability to initiate certain manual transfers between deposit accounts. The company expects to report on this material weakness in greater detail in an amended annual report for the year ended December 31, 2023, which will state that the company’s internal controls over financial reporting were not effective as of December 31, 2023. Management concluded Origin’s internal controls over financial reporting also were not effective as of March 31, 2024, June 30, 2024, or September 30, 2024. Accordingly, the company plans to file amended quarterly reports. Management believes that the identified material weakness did not impact the company’s consolidated financial statements. “The Company and the Audit Committee are committed to maintaining a strong internal control environment. Management implemented new controls and procedures designed to remediate the identified material weakness,” Origin added. The stock in afternoon trading is down 1% to $37.97.