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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported)
October 25, 2023
ORIGIN BANCORP, INC.
(Exact name of Registrant as specified in its charter)
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| Louisiana | | 001-38487 | | 72-1192928 |
| (State or other jurisdiction of incorporation) | | (Commission File No.) | | (I.R.S. Employer Identification No.) |
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500 South Service Road East
Ruston, Louisiana 71270
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| (Address of principal executive offices including zip code) |
(318) 255-2222
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| (Registrant's telephone number, including area code) |
Not Applicable
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| (Former name or former address, if changed since last report) |
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
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| Title of each class | | Trading Symbol(s) | | Name of each exchange on which registered |
| Common Stock, par value $5.00 per share | | OBK | | New York Stock Exchange |
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| Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). |
Emerging growth company ☐
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If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨ |
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| ITEM 2.02 | Results of Operations and Financial Condition |
On October 25, 2023, Origin Bancorp, Inc. (the "Company" or the "Registrant") issued a press release announcing its third quarter 2023 results of operations. A copy of the press release is attached hereto as Exhibit 99.1, which is incorporated herein by reference.
On Thursday, October 26, 2023, at 8:00 a.m. Central Time, the Company will host an investor conference call and webcast to review its third quarter 2023 financial results. The webcast will include presentation materials, which consist of information regarding the Company's results of operations and financial performance. The presentation materials will be posted on the Company's website on October 25, 2023. The presentation materials are attached hereto as Exhibit 99.2, which is incorporated herein by reference.
As provided in General Instructions B.2 to Form 8-K, the information furnished in Item 2.02, Exhibit 99.1 and Exhibit 99.2 of this Current Report on Form 8-K shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that section, and such information shall not be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
On October 25, 2023, the Company issued a press release announcing that the board of directors of the Company declared a quarterly cash dividend of $0.15 per share of its common stock. The cash dividend will be paid on November 30, 2023, to stockholders of record as of the close of business on November 15, 2023. The press release is attached hereto as Exhibit 99.3, and incorporated herein by reference.
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| ITEM 9.01 | Financial Statements and Exhibits |
| (d) | Exhibits. |
| Exhibit 99.1 | |
| Exhibit 99.2 | |
| Exhibit 99.3 | |
| Exhibit 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
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Dated: October 25, 2023 | | ORIGIN BANCORP, INC. |
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| | By: /s/ William J. Wallace, IV |
| | William J. Wallace, IV |
| | Senior Executive Officer and Chief Financial Officer |
Exhibit 99.1
For Immediate Release
ORIGIN BANCORP, INC. REPORTS EARNINGS FOR THIRD QUARTER 2023
RUSTON, Louisiana (October 25, 2023) - Origin Bancorp, Inc. (NYSE: OBK) (“Origin,” “we,” “our” or the “Company”), the holding company for Origin Bank (the “Bank”), today announced net income of $24.3 million, or $0.79 diluted earnings per share for the quarter ended September 30, 2023, compared to net income of $21.8 million, or $0.70 diluted earnings per share, for the quarter ended June 30, 2023. Adjusted pre-tax, pre-provision (“adjusted PTPP”)(1) earnings were $30.7 million for the quarter ended September 30, 2023.
“Origin reported strong earnings this quarter as our team remained focused on executing on our strategic plan and delivering for our customers and communities,” said Drake Mills, chairman, president and CEO of Origin Bancorp, Inc. “Economic activity remains strong throughout our markets, and our results reflect the continued strength and stability of our company."
(1) Adjusted PTPP earnings is a non-GAAP financial measure, please see the last few pages of this document for a reconciliation of this alternative financial measure to its comparable GAAP measure.
Financial Highlights
•Net income was $24.3 million for the quarter ended September 30, 2023, reflecting an increase of $2.6 million, or 11.7%, compared to the linked quarter. The adjusted net income(1) was $22.0 million for the quarter ended September 30, 2023, reflecting an increase of $616,000, or 2.9%, compared to the linked quarter.
•Diluted earnings per share (“EPS”) was $0.79 for the quarter ended September 30, 2023, reflecting an increase of $0.09, or 12.9%, compared to $0.70 for the linked quarter. The adjusted diluted earnings per share(1) was $0.71 for the quarter ended September 30, 2023, reflecting an increase of $0.02, or 2.9%, compared to $0.69 for the linked quarter.
•During September 2023, we sold $181.9 million of available-for-sale investment securities at a loss of $7.2 million, and used the proceeds to pay down Federal Home Loan Bank (“FHLB”) advances, which negatively impact our basic and diluted EPS by $0.18 for the quarter ended September 30, 2023.
•During September 2023, we recorded a $10.1 million positive valuation adjustment on one of our non-marketable equity securities, which positively impact our basic and diluted EPS by $0.26 for the quarter ended September 30, 2023.
•Loans held for investment (“LHFI”), excluding mortgage warehouse lines of credit, to deposits were 87.0% at September 30, 2023, compared to 83.5% at June 30, 2023. Cash and liquid securities as a percentage of total assets was 11.6% at September 30, 2023, compared to 11.1% at June 30, 2023.
•Book value per common share was $32.32 at September 30, 2023, reflecting a decrease of $0.01, compared to the linked quarter. Tangible book value per common share(1) was $26.78 at September 30, 2023, reflecting an increase of $0.07, or 0.3%, compared to the linked quarter.
•At September 30, 2023, and June 30, 2023, Company level common equity Tier 1 capital to risk-weighted assets was 11.45%, and 11.01%, respectively, the Tier 1 leverage ratio was 10.00% and 9.65%, respectively, and the total capital ratio was 14.60% and 14.11%, respectively. Tangible common equity to tangible assets(1) was 8.66% at September 30, 2023, compared to 8.25% at June 30, 2023.
(1) Adjusted net income, adjusted diluted earnings per share, tangible book value per common share and tangible common equity to tangible assets are non-GAAP financial measures. Please see the last few pages of this document for a reconciliation of these alternative financial measures to their comparable GAAP measures.
Results of Operations for the Three Months Ended September 30, 2023
Net Interest Income and Net Interest Margin
Net interest income for the quarter ended September 30, 2023, was $74.1 million, a decrease of $1.2 million, or 1.5%, compared to the linked quarter, primarily due to a $4.3 million increase in total interest expense, partially offset by a $3.1 million increase in total interest income. Increases in interest rates drove a $7.0 million increase in total deposit interest expense, and higher average interest-bearing deposit balances drove another $2.1 million increase in total deposit interest expense, primarily due to higher average brokered and money market deposit balances. The increase in total deposit interest expense was partially offset by a $4.9 million decrease in total interest expense paid on FHLB advances and other borrowings due to lower average balances during the current quarter compared to the linked quarter. Increases in interest rates on average interest-earning assets drove a $5.4 million increase in total interest income, of which $4.7 million was due to higher interest rates on LHFI. The increase was partially offset by a $2.5 million decrease in interest income on interest-bearing balances due from banks due to lower average balances during the current quarter compared to the linked quarter.
The net purchase accounting amortization totaled $38,000 for the three months ended September 30, 2023, a decrease of $568,000 from a net purchase accounting accretion of $530,000 for the three months ended June 30, 2023.
The Federal Reserve Board sets various benchmark rates, including the Federal Funds rate, and thereby influences the general market rates of interest, including the loan and deposit rates offered by financial institutions. On March 17, 2022, the Federal Reserve began an aggressive campaign to combat inflation with its first target rate range increase to 0.25% to 0.50%. Subsequently, it increased the target range six more times during 2022 and four more times through September 30, 2023, with the most recent and current Federal Funds target rate range being set on July 26, 2023, at 5.25% to 5.50%. By September 30, 2023, the Federal Funds target rate range had increased 500 basis points from March 17, 2022, and in order to remain competitive as market interest rates increased, we increased interest rates paid on our deposits.
The average rate on interest-bearing deposits increased to 3.47% for the quarter ended September 30, 2023, compared to 3.05% for the quarter ended June 30, 2023. The average interest-bearing deposit balances increased $235.5 million to $6.36 billion for the quarter ended September 30, 2023, from $6.12 billion for the linked quarter, of which $204.8 million and $78.5 million, respectively, were driven by higher average brokered and money market deposit balances. The average FHLB advances and other borrowings balance decreased to $230.8 million for the quarter ended September 30, 2023, compared to $606.1 million for the linked quarter, primarily due to the pay down of approximately $700.0 million in excess contingency liquidity during the linked quarter.
The yield on LHFI was 6.35% and 6.18% for the quarter ended September 30, 2023, and June 30, 2023, respectively, and average LHFI balances increased $86.8 million to $7.56 billion for the quarter ended September 30, 2023, compared to $7.47 billion for the linked quarter. The higher yield on LHFI was primarily driven by a $1.4 million increase in interest income earned on commercial real estate loans supported by interest rate increases on the loans during the quarter ended September 30, 2023, compared to the linked quarter.
The fully tax-equivalent net interest margin (“NIM”) was impacted by margin compression as rates on interest-bearing liabilities rose faster than yields on interest-earning assets during the last four quarters. The fully tax-equivalent NIM was 3.14% for the quarter ended September 30, 2023, representing a two and a 54 basis point decrease compared to the linked quarter and the prior year same quarter, respectively. The yield earned on interest-earning assets for the quarter ended September 30, 2023, was 5.69%, an increase of 19 and 146 basis points compared to the linked quarter and the prior year same quarter, respectively. The average rate paid on total interest-bearing liabilities for the quarter ended September 30, 2023, was 3.59%, representing a 29 and a 220 basis point increase compared to the linked quarter and the prior year same quarter, respectively. There was a minimal impact to the fully tax-equivalent NIM as a result of accretion income due to the BT Holdings, Inc. (“BTH”) merger for the current quarter and a two basis points increase for the linked quarter.
During the last few days of the quarter ended September 30, 2023, we made a strategic decision to sell available for sale investment securities with a book value of $181.9 million, and realized a loss of $7.2 million, in order to use the proceeds of $174.7 million to pay down FHLB advances. Due to the timing of this transaction, it had no impact on the fully tax-equivalent NIM for the quarter ended September 30, 2023. While the associated loss resulted in an $0.18 negative impact to diluted EPS for the quarter ended September 30, 2023, the difference between the relatively low yield on securities sold and the higher cost of FHLB advances was an attractive trade-off, with an estimated annualized positive forward impact to fully tax-equivalent NIM of 11 basis points, an estimated annualized forward diluted EPS benefit of approximately $0.11 and an estimated earn-back period of 1.7 years. The estimated metrics above use our annualized third quarter of 2023 net income, excluding non-operating items, plus the estimated annualized tax-effected net interest income using a weighted average tax-effected yield of 3.08% on the securities sold and an interest cost of 5.62% on the FHLB advances paid off.
Credit Quality
The table below includes key credit quality information:
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| At and For the Three Months Ended | | Change | | % Change | | | |
| (Dollars in thousands, unaudited) | September 30,
2023 | | June 30,
2023 | | September 30,
2022 | | Linked
Quarter | | Linked
Quarter | | | |
| Past due LHFI | $ | 20,347 | | | $ | 19,836 | | | $ | 10,866 | | | $ | 511 | | | 2.6 | % | | | |
| Allowance for Loan Credit Losses (“ALCL”) | 95,177 | | | 94,353 | | | 83,359 | | | 824 | | | 0.9 | | | | |
| Classified loans | 64,021 | | | 84,298 | | | 69,781 | | | (20,277) | | | (24.1) | | | | |
| Total nonperforming LHFI | 31,608 | | | 33,609 | | | 14,031 | | | (2,001) | | | (6.0) | | | | |
| Provision for credit losses | 3,515 | | | 4,306 | | | 16,942 | | | (791) | | | (18.4) | | | | |
| Net charge-offs | 2,686 | | | 1,919 | | | 1,078 | | | 767 | | | 40.0 | | | | |
Credit quality ratios(1): | | | | | | | | | | | | |
| ALCL to nonperforming LHFI | 301.12 | % | | 280.74 | % | | 594.11 | % | | 2038 bp | | N/A | | | |
| ALCL to total LHFI | 1.26 | | | 1.24 | | | 1.21 | | | 2 bp | | N/A | | | |
ALCL to total LHFI, adjusted(2) | 1.30 | | | 1.32 | | | 1.29 | | | -2 bp | | N/A | | | |
| Nonperforming LHFI to LHFI | 0.42 | | | 0.44 | | | 0.20 | | | -2 bp | | N/A | | | |
| Net charge-offs to total average LHFI (annualized) | 0.14 | | | 0.10 | | | 0.07 | | | 4 bp | | N/A | | | |
___________________________(1)Please see the Loan Data schedule at the back of this document for additional information.
(2)The ALCL to total LHFI, adjusted, is calculated by excluding the ALCL for warehouse loans from the total LHFI ALCL in the numerator and excluding the warehouse loans from the LHFI in the denominator. Due to their low-risk profile, mortgage warehouse loans require a disproportionately low allocation of the ALCL.
We recorded a credit loss provision of $3.5 million during the quarter ended September 30, 2023, compared to $4.3 million recorded during the linked quarter. The decrease is primarily due to an improvement in classified and nonperforming loans during the quarter ended September 30, 2023, compared to June 30, 2023.
The ALCL to nonperforming LHFI increased to 301.1% at September 30, 2023, compared to 280.7% at June 30, 2023, driven primarily by a decrease of $2.0 million in our nonperforming LHFI. Nonperforming LHFI to LHFI decreased over the past quarter to 0.42% compared to 0.44% for the linked quarter. Quarterly net charge-offs increased to $2.7 million from $1.9 million for the linked quarter, primarily due to an increase in commercial and industrial charge-offs combined with a decrease in commercial and industrial loan recoveries compared to the linked quarter.
Classified loans decreased $20.3 million, or 24.1%, at September 30, 2023, compared to the linked quarter, and represented 0.85% of LHFI at September 30, 2023, compared to 1.11% at June 30, 2023. The decrease in classified loans was primarily due to payoffs and, to a lesser degree, upgrades in classified loans at September 30, 2023, compared to June 30, 2023.
Noninterest Income
Noninterest income for the quarter ended September 30, 2023, was $18.1 million, an increase of $2.5 million, or 15.9%, from the linked quarter. The increase from the linked quarter was primarily driven by a $10.5 million increase in other noninterest income, which was partially offset by a $7.2 million loss on sales of securities, a $656,000 decrease in limited partnership investment income and a $510,000 decrease in mortgage banking revenue.
The increase in other noninterest income was primarily due to a $10.1 million positive valuation adjustment recorded on one of our non-marketable equity securities, which qualified for the practical expedient under which we carry these securities at cost adjusted for any observable transactions during the period, less any impairment. During the three months ended September 30, 2023, we observed multiple orderly transactions for identical equity securities indicating a price change had occurred and adjusted our basis upwards accordingly.
The loss on sales of securities was due to the sale of available for sale investment securities with a current book value of $181.9 million, which realized a loss on sale of $7.2 million. We used the proceeds from the sale of $174.7 million to pay down FHLB advances. Please see the Net Interest Income and Net Interest Margin section above for more information on this transaction.
The decrease in limited partnership investment income was mainly due to a $628,000 decrease in fair value of investments in one of our limited partnership funds during the current quarter.
Noninterest Expense
Noninterest expense for the quarter ended September 30, 2023, was $58.7 million, slightly decreased from the linked quarter by $224,000, or 0.4%. The decrease from the linked quarter was primarily due to a $377,000 decrease in franchise tax expense, offset by several immaterial changes in noninterest expense line items.
Income Taxes
The effective tax rate was 19.1% during the quarter ended September 30, 2023, compared to 21.5% during the linked quarter primarily due to a decrease in the estimated state tax compared to the linked quarter.
Financial Condition
Loans
•Total LHFI at September 30, 2023, were $7.57 billion, a decrease of $54.6 million, or 0.7%, from $7.62 billion at June 30, 2023, and an increase of $685.4 million, or 10.0%, compared to September 30, 2022.
•Mortgage warehouse lines of credit totaled $286.3 million at September 30, 2023, a decrease of $251.3 million, or 46.7%, compared to the linked quarter.
•Total real estate loans were $5.20 billion at September 30, 2023, an increase of $116.8 million, or 2.3%, from the linked quarter, with construction/land/land development and residential real estate loan growth each contributing $54.5 million of the total real estate loan growth, respectively.
•Total commercial and industrial loans were $2.06 billion at September 30, 2023, an increase of $81.0 million, or 4.1%, compared to the linked quarter.
Securities
•Total securities at September 30, 2023, were $1.31 billion, a decrease of $244.6 million, or 15.8%, compared to the linked quarter and a decrease of $381.4 million, or 22.6%, compared to September 30, 2022.
•The decrease was primarily due to sales, maturities and calls, as well as normal principal payments. During the last few days of the quarter ended September 30, 2023, we made a strategic decision to sell available for sale investment securities with a book value of $181.9 million and realized a loss of $7.2 million, the proceeds of which were used to pay down FHLB advances.
•Accumulated other comprehensive loss, net of taxes, primarily associated with the available for sale (“AFS”) portfolio, was $172.7 million at September 30, 2023, an increase of $19.9 million, or 13.0%, from the linked quarter.
•The weighted average effective duration for the total securities portfolio was 4.49 years as of September 30, 2023, compared to 4.13 years as of June 30, 2023.
Deposits
•Total deposits at September 30, 2023, were $8.37 billion, a decrease of $115.6 million, or 1.4%, compared to the linked quarter, and represented an increase of $597.2 million, or 7.7%, from September 30, 2022.
•The decrease in the current quarter compared to the linked quarter was primarily due to a decrease of $115.0 million in noninterest-bearing deposits. Noninterest-bearing deposits continued to be impacted by the higher interest rate environment, as we saw a continuation of the declining trend in noninterest-bearing deposit balances that began in the fourth quarter of 2022.
•At September 30, 2023, noninterest-bearing deposits as a percentage of total deposits were 24.0%, compared to 25.0% and 34.3% at June 30, 2023, and September 30, 2022, respectively.
•Uninsured/uncollateralized deposits totaled $2.75 billion at September 30, 2023, compared to $2.84 billion at June 30, 2023, representing 32.8% and 33.4% of total deposits at September 30, 2023, and June 30, 2023, respectively.
Borrowings
•FHLB advances and other borrowings at September 30, 2023, were $12.2 million, a decrease of $330.6 million, or 96.4%, compared to the linked quarter and represented a decrease of $438.2 million, or 97.3%, from September 30, 2022.
•During the last few days of the quarter ended September 30, 2023, we made a strategic decision to sell available for sale investment securities to pay down FHLB advances.
Stockholders’ Equity
•Stockholders’ equity was $998.9 million at September 30, 2023, an increase of $1.1 million, or 0.1%, compared to $997.9 million at June 30, 2023, and an increase of $91.9 million, or 10.1%, compared to $907.0 million, at September 30, 2022.
•The increase in stockholders’ equity from the linked quarter is primarily due to net income of $24.3 million, partially offset by an increase in accumulated other comprehensive loss, net of tax, of $19.9 million and dividends declared of $4.7 million during the current quarter.
Conference Call
Origin will hold a conference call to discuss its third quarter 2023 results on Thursday, October 26, 2023, at 8:00 a.m. Central Time (9:00 a.m. Eastern Time). To participate in the live conference call, please dial +1 (929) 272-1574 (U.S. Local / International 1); +1 (857) 999-3259 (U.S. Local / International 2); +1 (800) 528-1066 (U.S. Toll Free), enter Conference ID: 51465 and request to be joined into the Origin Bancorp, Inc. (OBK) call. A simultaneous audio-only webcast may be accessed via Origin’s website at www.origin.bank under the investor relations, News & Events, Events & Presentations link or directly by visiting https://dealroadshow.com/e/ORIGINQ323.
If you are unable to participate during the live webcast, the webcast will be archived on the Investor Relations section of Origin’s website at www.origin.bank, under Investor Relations, News & Events, Events & Presentations.
About Origin
Origin Bancorp, Inc. is a financial holding company headquartered in Ruston, Louisiana. Origin’s wholly owned bank subsidiary, Origin Bank, was founded in 1912 in Choudrant, Louisiana. Deeply rooted in Origin’s history is a culture committed to providing personalized, relationship banking to businesses, municipalities, and personal clients to enrich the lives of the people in the communities it serves. Origin provides a broad range of financial services and currently operates 60 banking centers located in Dallas/Fort Worth, East Texas, Houston, North Louisiana and Mississippi. For more information, visit www.origin.bank.
Non-GAAP Financial Measures
Origin reports its results in accordance with generally accepted accounting principles in the United States of America ("GAAP"). However, management believes that certain supplemental non-GAAP financial measures may provide meaningful information to investors that is useful in understanding Origin's results of operations and underlying trends in its business. However, non-GAAP financial measures are supplemental and should be viewed in addition to, and not as an alternative for, Origin's reported results prepared in accordance with GAAP. The following are the non-GAAP measures used in this release: adjusted net income, adjusted PTPP earnings, adjusted diluted EPS, NIM-FTE, adjusted, adjusted ROAA, adjusted PTPP ROAA, adjusted ROAE, adjusted PTPP ROAE, tangible book value per common share, adjusted tangible book value per common share, tangible common equity to tangible assets, ROATCE, adjusted ROATCE and adjusted efficiency ratio.
Please see the last few pages of this release for reconciliations of non-GAAP measures to the most directly comparable financial measures calculated in accordance with GAAP.
Forward-Looking Statements
This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include information regarding Origin’s future financial performance, business and growth strategies, projected plans and objectives, and any expected purchases of its outstanding common stock, and related transactions and other projections based on macroeconomic and industry trends, including changes to interest rates by the Federal Reserve and the resulting impact on Origin’s results of operations, estimated forbearance amounts and expectations regarding the Company’s liquidity, including in connection with advances obtained from the FHLB, which are all subject to change and may be inherently unreliable due to the multiple factors that impact broader economic and industry trends, and any such changes may be material. Such forward-looking statements are based on various facts and derived utilizing important assumptions and current expectations, estimates and projections about Origin and its subsidiaries, any of which may change over time and some of which may be beyond Origin’s control. Statements or statistics preceded by, followed by or that otherwise include the words “assumes,” “anticipates,” “believes,” “estimates,” “expects,” “foresees,” “intends,” “plans,” “projects,” and similar expressions or future or conditional verbs such as “could,” “may,” “might,” “should,” “will,” and “would” and variations of such terms are generally forward-looking in nature and not historical facts, although not all forward-looking statements include the foregoing words. Further, certain factors that could affect Origin’s future results and cause actual results to differ materially from those expressed in the forward-looking statements include, but are not limited to: potential impacts of adverse developments in the banking industry highlighted by high-profile bank failures, including impacts on customer confidence, deposit outflows, liquidity and the regulatory response thereto; the impact of current and future economic conditions generally and in the financial services industry, nationally and within Origin’s primary market areas, including the effects of declines in the real estate market, high unemployment rates, inflationary pressures, elevated interest rates and slowdowns in economic growth, as well as the financial stress on borrowers and changes to customer and client behavior as a result of the foregoing; deterioration of Origin’s asset quality; factors that can impact the performance of Origin’s loan portfolio, including real estate values and liquidity in Origin’s primary market areas; the financial health of Origin’s commercial borrowers and the success of construction projects that Origin finances; changes in the value of collateral securing Origin’s loans; developments in our mortgage banking business, including loan modifications, general demand, and the effects of judicial or regulatory requirements or guidance; Origin’s ability to anticipate interest rate changes and manage interest rate risk, (including the impact of higher interest rates on macroeconomic conditions, competition, and the cost of doing business); the effectiveness of Origin’s risk management framework and quantitative models; Origin’s inability to receive dividends from Origin Bank and to service debt, pay dividends to Origin’s common stockholders, repurchase Origin’s shares of common stock and satisfy obligations as they become due; the impact of labor pressures; changes in Origin’s operation or expansion strategy or Origin’s ability to prudently manage its growth and execute its strategy; changes in management personnel; Origin’s ability to maintain important customer relationships, reputation or otherwise avoid liquidity risks; increasing costs as Origin grows deposits; operational risks associated with Origin’s business; volatility and direction of market interest rates; significant turbulence or a disruption in the capital or financial markets and the effect of a fall in stock market prices on our investment securities; increased competition in the financial services industry, particularly from regional and national institutions, as well as from fintech companies; difficult market conditions and unfavorable economic trends in the United States generally, and particularly in the market areas in which Origin operates and in which its loans are concentrated; an increase in unemployment levels and slowdowns in economic growth; Origin’s level of nonperforming assets and the costs associated with resolving any problem loans including litigation and other costs; the credit risk associated with the substantial amount of commercial real estate, construction and land development, and commercial loans in Origin’s loan portfolio; changes in laws, rules, regulations, interpretations or policies relating to financial institutions, and potential expenses associated with complying with such regulations; periodic changes to the extensive body of accounting rules and best practices; further government intervention in the U.S. financial system; a deterioration of the credit rating for U.S. long-term sovereign debt or actions that the U.S. government may take to avoid exceeding the debt ceiling; compliance with governmental and regulatory requirements, including the Dodd-Frank Wall Street Reform and Consumer Protection Act and others relating to banking, consumer protection, securities, and tax matters; Origin’s ability to comply with applicable capital and liquidity requirements, including its ability to generate liquidity internally or raise capital on favorable terms, including continued access to the debt and equity capital markets; changes in the utility of Origin’s non-GAAP liquidity measurements and its underlying assumptions or estimates; uncertainty regarding the transition away from the London Interbank Offered Rate and the impact of any replacement alternatives such as the Secured Overnight Financing Rate on Origin’s business; possible changes in trade, monetary and fiscal policies, laws and regulations and other activities of governments, agencies and similar organizations; natural disasters and adverse weather events, acts of terrorism, an outbreak of hostilities (including the impacts related to or resulting from Russia's military action in Ukraine or the conflict in Israel and surrounding areas, including the imposition of additional sanctions and export controls, as well as the broader impacts to financial markets and the global macroeconomic and geopolitical
environments), regional or national protests and civil unrest (including any resulting branch closures or property damage), widespread illness or public health outbreaks or other international or domestic calamities, and other matters beyond Origin’s control; the impact of generative artificial intelligence; fraud or misconduct by internal or external actors, system failures, cybersecurity threats or security breaches and the cost of defending against them. For a discussion of these and other risks that may cause actual results to differ from expectations, please refer to the sections titled “Cautionary Note Regarding Forward-Looking Statements” and “Risk Factors” in Origin’s most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission and any updates to those sections set forth in Origin’s subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. If one or more events related to these or other risks or uncertainties materialize, or if Origin’s underlying assumptions prove to be incorrect, actual results may differ materially from what Origin anticipates. Accordingly, you should not place undue reliance on any forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made, and Origin does not undertake any obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise.
New risks and uncertainties arise from time to time, and it is not possible for Origin to predict those events or how they may affect Origin. In addition, Origin cannot assess the impact of each factor on Origin’s business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. All forward-looking statements, expressed or implied, included in this communication are expressly qualified in their entirety by this cautionary statement. This cautionary statement should also be considered in connection with any subsequent written or oral forward-looking statements that Origin or persons acting on Origin’s behalf may issue. Annualized, pro forma, adjusted, projected, and estimated numbers are used for illustrative purposes only, are not forecasts, and may not reflect actual results.
Contact:
Investor Relations
Chris Reigelman
318-497-3177
chris@origin.bank
Media Contact
Ryan Kilpatrick
318-232-7472
rkilpatrick@origin.bank
Origin Bancorp, Inc.
Selected Quarterly Financial Data
(Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended | | | |
| September 30,
2023 | | June 30,
2023 | | March 31,
2023 | | December 31,
2022 | | September 30,
2022 | | | | | |
| | | | | | | | | | | | | | |
| Income statement and share amounts | (Dollars in thousands, except per share amounts) | | | |
Net interest income | $ | 74,130 | | | $ | 75,291 | | | $ | 77,147 | | | $ | 84,749 | | | $ | 78,523 | | | | | | |
| Provision for credit losses | 3,515 | | | 4,306 | | | 6,197 | | | 4,624 | | | 16,942 | | | | | | |
Noninterest income | 18,119 | | | 15,636 | | | 16,384 | | | 13,429 | | | 13,723 | | | | | | |
| Noninterest expense | 58,663 | | | 58,887 | | | 56,760 | | | 57,254 | | | 56,241 | | | | | | |
Income before income tax expense | 30,071 | | | 27,734 | | | 30,574 | | | 36,300 | | | 19,063 | | | | | | |
| Income tax expense | 5,758 | | | 5,974 | | | 6,272 | | | 6,822 | | | 2,820 | | | | | | |
Net income | $ | 24,313 | | | $ | 21,760 | | | $ | 24,302 | | | $ | 29,478 | | | $ | 16,243 | | | | | | |
Adjusted net income(1) | $ | 22,004 | | | $ | 21,388 | | | $ | 24,188 | | | $ | 30,409 | | | $ | 31,087 | | | | | | |
Adjusted PTPP earnings(1) | 30,663 | | | 31,569 | | | 36,627 | | | 42,103 | | | 39,905 | | | | | | |
| | | | | | | | | | | | | | |
Basic earnings per common share | 0.79 | | | 0.71 | | | 0.79 | | | 0.96 | | | 0.57 | | | | | | |
Diluted earnings per common share | 0.79 | | | 0.70 | | | 0.79 | | | 0.95 | | | 0.57 | | | | | | |
Adjusted diluted earnings per common share(1) | 0.71 | | | 0.69 | | | 0.78 | | | 0.99 | | | 1.09 | | | | | | |
| Dividends declared per common share | 0.15 | | | 0.15 | | | 0.15 | | | 0.15 | | | 0.15 | | | | | | |
Weighted average common shares outstanding - basic | 30,856,649 | | | 30,791,397 | | | 30,742,902 | | | 30,674,389 | | | 28,298,984 | | | | | | |
Weighted average common shares outstanding - diluted | 30,943,860 | | | 30,872,834 | | | 30,882,156 | | | 30,867,511 | | | 28,481,619 | | | | | | |
| | | | | | | | | | | | | | |
Balance sheet data | | | | | | | | | | | | | | |
Total LHFI | $ | 7,568,063 | | | $ | 7,622,689 | | | $ | 7,375,823 | | | $ | 7,090,022 | | | $ | 6,882,681 | | | | | | |
Total assets | 9,733,303 | | | 10,165,163 | | | 10,358,516 | | | 9,686,067 | | | 9,462,639 | | | | | | |
| Total deposits | 8,374,488 | | | 8,490,043 | | | 8,174,310 | | | 7,775,702 | | | 7,777,327 | | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| Total stockholders’ equity | 998,945 | | | 997,859 | | | 992,587 | | | 949,943 | | | 907,024 | | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| Performance metrics and capital ratios | | | | | | | | | | | | | | |
| Yield on LHFI | 6.35 | % | | 6.18 | % | | 6.03 | % | | 5.63 | % | | 4.94 | % | | | | | |
| Yield on interest-earnings assets | 5.69 | | | 5.50 | | | 5.31 | | | 4.96 | | | 4.23 | | | | | | |
| Cost of interest-bearing deposits | 3.47 | | | 3.05 | | | 2.49 | | | 1.54 | | | 0.64 | | | | | | |
| Cost of total deposits | 2.61 | | | 2.26 | | | 1.75 | | | 1.02 | | | 0.41 | | | | | | |
| NIM - fully tax equivalent ("FTE") | 3.14 | | | 3.16 | | | 3.44 | | | 3.81 | | | 3.68 | | | | | | |
NIM - FTE, adjusted(2) | 3.14 | | | 3.14 | | | 3.36 | | | 3.73 | | | 3.61 | | | | | | |
| Return on average assets (annualized) ("ROAA") | 0.96 | | | 0.86 | | | 1.01 | | | 1.23 | | | 0.70 | | | | | | |
Adjusted ROAA (annualized)(1) | 0.87 | | | 0.84 | | | 1.00 | | | 1.27 | | | 1.34 | | | | | | |
| | | | | | | | | | | | | | |
Adjusted PTPP ROAA (annualized)(1) | 1.21 | | | 1.24 | | | 1.52 | | | 1.75 | | | 1.72 | | | | | | |
| Return on average stockholders’ equity (annualized) ("ROAE") | 9.52 | | | 8.76 | | | 10.10 | | | 12.80 | | | 6.86 | | | | | | |
Adjusted ROAE (annualized)(1) | 8.62 | | | 8.61 | | | 10.05 | | | 13.20 | | | 13.14 | | | | | | |
| | | | | | | | | | | | | | |
Adjusted PTPP ROAE (annualized)(1) | 12.01 | | | 12.70 | | | 15.22 | | | 18.28 | | | 16.86 | | | | | | |
Book value per common share(3) | $ | 32.32 | | | $ | 32.33 | | | $ | 32.25 | | | $ | 30.90 | | | $ | 29.58 | | | | | | |
| | | | | | | | | | | | | | |
Tangible book value per common share (1)(3) | 26.78 | | | 26.71 | | | 26.53 | | | 25.09 | | | 23.41 | | | | | | |
Adjusted tangible book value per common share(1) | 32.37 | | | 31.66 | | | 31.03 | | | 30.29 | | | 29.13 | | | | | | |
Return on average tangible common equity (annualized) ("ROATCE")(1) | 11.48 | % | | 10.62 | % | | 12.34 | % | | 16.00 | % | | 8.03 | % | | | | | |
Adjusted return on average tangible common equity (annualized) ("adjusted ROATCE")(1) | 10.39 | | | 10.44 | | | 12.29 | | | 16.50 | | | 15.38 | | | | | | |
Efficiency ratio(4) | 63.59 | | | 64.76 | | | 60.69 | | | 58.32 | | | 60.97 | | | | | | |
Adjusted efficiency ratio(1) | 62.71 | | | 61.17 | | | 58.64 | | | 53.06 | | | 52.16 | | | | | | |
| | | | | | | | | | | | | | |
Origin Bancorp, Inc.
Selected Quarterly Financial Data- Continued
(Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended | | | |
| September 30,
2023 | | June 30,
2023 | | March 31,
2023 | | December 31,
2022 | | September 30,
2022 | | | | | |
| (Dollars in thousands, except per share amounts) | | | | | |
Common equity tier 1 to risk-weighted assets(5) | 11.45 | % | | 11.01 | % | | 11.08 | % | | 10.93 | % | | 10.51 | % | | | | | |
Tier 1 capital to risk-weighted assets(5) | 11.63 | | | 11.19 | | | 11.27 | | | 11.12 | | | 10.70 | | | | | | |
Total capital to risk-weighted assets(5) | 14.60 | | | 14.11 | | | 14.30 | | | 14.23 | | | 13.79 | | | | | | |
Tier 1 leverage ratio(5) | 10.00 | | | 9.65 | | | 9.79 | | | 9.66 | | | 9.63 | | | | | | |
__________________________
(1)Adjusted net income, adjusted PTPP earnings, adjusted diluted earnings per common share, adjusted ROAA, adjusted PTPP ROAA, adjusted ROAE, adjusted PTPP ROAE, tangible book value per common share, adjusted tangible book value per common share, ROATCE, adjusted ROATCE and adjusted efficiency ratio are either non-GAAP financial measures or use a non-GAAP contributor in the formula. For a reconciliation of these alternative financial measures to their comparable GAAP measures, please see the last few pages of this release.
(2)NIM - FTE, adjusted, is a non-GAAP financial measure and is calculated by removing the net purchase accounting accretion from the net interest income.
(3)An increase in accumulated other comprehensive loss negatively impacted total stockholders' equity, tangible common equity, book value and tangible book value per common share primarily due to the movement of the short end of the yield curve and its impact on our investment portfolio.
(4)Calculated by dividing noninterest expense by the sum of net interest income plus noninterest income.
(5)September 30, 2023, ratios are estimated and calculated at the Company level, which is subject to the capital adequacy requirements of the Federal Reserve Board.
Origin Bancorp, Inc.
Selected Year-to-Date Financial Data
(Unaudited)
| | | | | | | | | | | |
| Nine Months Ended September 30, |
| (Dollars in thousands, except per share amounts) | 2023 | | 2022 |
| | | |
| Income statement and share amounts | |
Net interest income | $ | 226,568 | | | $ | 190,529 | |
| Provision for credit losses | 14,018 | | | 20,067 | |
Noninterest income | 50,139 | | | 43,845 | |
| Noninterest expense | 174,310 | | | 143,165 | |
Income before income tax expense | 88,379 | | | 71,142 | |
Income tax expense | 18,004 | | | 12,905 | |
Net income | $ | 70,375 | | | $ | 58,237 | |
Adjusted net income(1) | $ | 67,580 | | | $ | 74,170 | |
Adjusted PTPP earnings(1) | 98,859 | | | 96,487 | |
| Basic earnings per common share | 2.29 | | | 2.31 | |
| Diluted earnings per common share | 2.28 | | | 2.30 | |
Adjusted diluted earnings per common share(1) | 2.19 | | | 2.92 | |
| Dividends declared per common share | 0.45 | | | 0.43 | |
Weighted average common shares outstanding - basic | 30,797,399 | | | 25,263,681 | |
Weighted average common shares outstanding - diluted | 30,903,222 | | | 25,366,807 | |
| | | |
| | | |
| | | |
| | | |
| Performance metrics | | | |
| Yield on LHFI | 6.19 | % | | 4.47 | % |
| Yield on interest-earning assets | 5.50 | | | 3.66 | |
| Cost of interest-bearing deposits | 3.03 | | | 0.40 | |
| Cost of total deposits | 2.22 | | | 0.27 | |
| NIM, FTE | 3.24 | | | 3.28 | |
NIM - FTE, adjusted(2) | 3.21 | | | 3.25 | |
| ROAA | 0.94 | | | 0.93 | |
Adjusted ROAA(1) | 0.90 | | | 1.18 | |
Adjusted PTPP ROAA(1) | 1.32 | | | 1.54 | |
| ROAE | 9.45 | | | 10.02 | |
Adjusted ROAE(1) | 9.08 | | | 12.76 | |
Adjusted PTPP ROAE(1) | 13.28 | | | 16.60 | |
| | | |
| | | |
ROATCE(1) | 11.47 | | | 11.17 | |
Adjusted ROATCE(1) | 11.01 | | | 14.22 | |
Efficiency ratio(3) | 62.99 | | | 61.08 | |
Adjusted efficiency ratio(1) | 60.81 | | | 54.64 | |
____________________________
(1)Adjusted net income, adjusted PTPP earnings, adjusted diluted earnings per common share, adjusted ROAA, adjusted PTPP ROAA, adjusted ROAE, adjusted PTPP ROAE, ROATCE, adjusted ROATCE and adjusted efficiency ratio are either non-GAAP financial measures or use a non-GAAP contributor in the formula. For a reconciliation of these alternative financial measures to their comparable GAAP measures, please see the last few pages of this release.
(2)NIM - FTE, adjusted, is a non-GAAP financial measure and is calculated by removing the net purchase accounting accretion from the net interest income.
(3)Calculated by dividing noninterest expense by the sum of net interest income plus noninterest income.
Origin Bancorp, Inc.
Consolidated Quarterly Statements of Income
(Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended | |
| September 30,
2023 | | June 30,
2023 | | March 31,
2023 | | December 31,
2022 | | | | September 30,
2022 | | |
| | | | | | | | | | | | | |
| Interest and dividend income | (Dollars in thousands, except per share amounts) | |
| Interest and fees on loans | $ | 121,204 | | | $ | 115,442 | | | $ | 106,496 | | | $ | 99,178 | | | | | $ | 79,803 | | | |
| Investment securities-taxable | 8,194 | | | 8,303 | | | 8,161 | | | 7,765 | | | | | 7,801 | | | |
| Investment securities-nontaxable | 1,281 | | | 1,283 | | | 1,410 | | | 2,128 | | | | | 2,151 | | | |
| Interest and dividend income on assets held in other financial institutions | 4,772 | | | 7,286 | | | 4,074 | | | 2,225 | | | | | 1,482 | | | |
| Total interest and dividend income | 135,451 | | | 132,314 | | | 120,141 | | | 111,296 | | | | | 91,237 | | | |
| Interest expense | | | | | | | | | | | | | |
| Interest-bearing deposits | 55,599 | | | 46,530 | | | 34,557 | | | 19,820 | | | | | 7,734 | | | |
| FHLB advances and other borrowings | 3,207 | | | 7,951 | | | 5,880 | | | 4,208 | | | | | 2,717 | | | |
| Subordinated indebtedness | 2,515 | | | 2,542 | | | 2,557 | | | 2,519 | | | | | 2,263 | | | |
| Total interest expense | 61,321 | | | 57,023 | | | 42,994 | | | 26,547 | | | | | 12,714 | | | |
Net interest income | 74,130 | | | 75,291 | | | 77,147 | | | 84,749 | | | | | 78,523 | | | |
| Provision for credit losses | 3,515 | | | 4,306 | | | 6,197 | | | 4,624 | | | | | 16,942 | | | |
| Net interest income after provision for credit losses | 70,615 | | | 70,985 | | | 70,950 | | | 80,125 | | | | | 61,581 | | | |
| Noninterest income | | | | | | | | | | | | | |
| Insurance commission and fee income | 6,443 | | | 6,185 | | | 7,011 | | | 5,054 | | | | | 5,666 | | | |
| Service charges and fees | 4,621 | | | 4,722 | | | 4,571 | | | 4,663 | | | | | 4,734 | | | |
| Mortgage banking revenue (loss) | 892 | | | 1,402 | | | 1,781 | | | 1,201 | | | | | (929) | | | |
| Other fee income | 944 | | | 970 | | | 942 | | | 1,132 | | | | | 1,162 | | | |
| Swap fee income | 366 | | | 331 | | | 384 | | | 292 | | | | | 25 | | | |
| (Loss) gain on sales of securities, net | (7,173) | | | — | | | 144 | | | — | | | | | 1,664 | | | |
| | | | | | | | | | | | | |
| Limited partnership investment (loss) income | (425) | | | 231 | | | 66 | | | (230) | | | | | 112 | | | |
| Gain (loss) on sales and disposals of other assets, net | 45 | | | (111) | | | 63 | | | 34 | | | | | 70 | | | |
| | | | | | | | | | | | | |
| Other income | 12,406 | | | 1,906 | | | 1,422 | | | 1,283 | | | | | 1,219 | | | |
| Total noninterest income | 18,119 | | | 15,636 | | | 16,384 | | | 13,429 | | | | | 13,723 | | | |
| Noninterest expense | | | | | | | | | | | | | |
| Salaries and employee benefits | 34,624 | | | 34,533 | | | 33,731 | | | 33,339 | | | | | 31,834 | | | |
| Occupancy and equipment, net | 6,790 | | | 6,578 | | | 6,503 | | | 5,863 | | | | | 5,399 | | | |
| Data processing | 2,775 | | | 2,837 | | | 2,916 | | | 2,868 | | | | | 2,689 | | | |
| Intangible asset amortization | 2,264 | | | 2,552 | | | 2,553 | | | 2,554 | | | | | 1,872 | | | |
| Office and operations | 2,868 | | | 2,716 | | | 2,303 | | | 2,277 | | | | | 2,121 | | | |
| Professional services | 1,409 | | | 1,557 | | | 1,525 | | | 1,145 | | | | | 1,188 | | | |
| Loan-related expenses | 1,220 | | | 1,256 | | | 1,465 | | | 1,676 | | | | | 1,599 | | | |
| Advertising and marketing | 1,371 | | | 1,469 | | | 1,456 | | | 1,505 | | | | | 1,196 | | | |
| Electronic banking | 1,384 | | | 1,216 | | | 1,009 | | | 1,058 | | | | | 1,087 | | | |
| Franchise tax expense | 520 | | | 897 | | | 975 | | | 1,017 | | | | | 957 | | | |
| Regulatory assessments | 1,913 | | | 1,732 | | | 951 | | | 1,242 | | | | | 877 | | | |
| Communications | 390 | | | 407 | | | 384 | | | 434 | | | | | 279 | | | |
| Merger-related expense | — | | | — | | | — | | | 1,179 | | | | | 3,614 | | | |
| Other expenses | 1,135 | | | 1,137 | | | 989 | | | 1,097 | | | | | 1,529 | | | |
| Total noninterest expense | 58,663 | | | 58,887 | | | 56,760 | | | 57,254 | | | | | 56,241 | | | |
| Income before income tax expense | 30,071 | | | 27,734 | | | 30,574 | | | 36,300 | | | | | 19,063 | | | |
| Income tax expense | 5,758 | | | 5,974 | | | 6,272 | | | 6,822 | | | | | 2,820 | | | |
| Net income | $ | 24,313 | | | $ | 21,760 | | | $ | 24,302 | | | $ | 29,478 | | | | | $ | 16,243 | | | |
| Basic earnings per common share | $ | 0.79 | | | $ | 0.71 | | | $ | 0.79 | | | $ | 0.96 | | | | | $ | 0.57 | | | |
| Diluted earnings per common share | 0.79 | | | 0.70 | | | 0.79 | | | 0.95 | | | | | 0.57 | | | |
Origin Bancorp, Inc.
Consolidated Balance Sheets
(Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| (Dollars in thousands) | September 30,
2023 | | June 30,
2023 | | March 31,
2023 | | December 31,
2022 | | September 30,
2022 | | |
| Assets | | | | | | | | | | | |
| Cash and due from banks | $ | 141,705 | | | $ | 127,576 | | | $ | 117,309 | | | $ | 150,180 | | | $ | 118,505 | | | |
| Interest-bearing deposits in banks | 163,573 | | | 338,414 | | | 707,802 | | | 208,792 | | | 181,965 | | | |
| Total cash and cash equivalents | 305,278 | | | 465,990 | | | 825,111 | | | 358,972 | | | 300,470 | | | |
| Securities: | | | | | | | | | | | |
| AFS | 1,290,839 | | | 1,535,702 | | | 1,591,334 | | | 1,641,484 | | | 1,672,170 | | | |
| Held to maturity, net of allowance for credit losses | 10,790 | | | 11,234 | | | 11,191 | | | 11,275 | | | 11,285 | | | |
| Securities carried at fair value through income | 6,772 | | | 6,106 | | | 6,413 | | | 6,368 | | | 6,347 | | | |
| Total securities | 1,308,401 | | | 1,553,042 | | | 1,608,938 | | | 1,659,127 | | | 1,689,802 | | | |
| Non-marketable equity securities held in other financial institutions | 63,842 | | | 58,446 | | | 77,036 | | | 67,378 | | | 53,899 | | | |
| Loans held for sale | 14,944 | | | 15,198 | | | 29,143 | | | 49,957 | | | 59,714 | | | |
| Loans | 7,568,063 | | | 7,622,689 | | | 7,375,823 | | | 7,090,022 | | | 6,882,681 | | | |
| Less: ALCL | 95,177 | | | 94,353 | | | 92,008 | | | 87,161 | | | 83,359 | | | |
| Loans, net of ALCL | 7,472,886 | | | 7,528,336 | | | 7,283,815 | | | 7,002,861 | | | 6,799,322 | | | |
| Premises and equipment, net | 111,700 | | | 105,501 | | | 104,047 | | | 100,201 | | | 99,291 | | | |
| Mortgage servicing rights | 19,189 | | | 19,086 | | | 18,261 | | | 20,824 | | | 21,654 | | | |
| Cash surrender value of bank-owned life insurance | 39,688 | | | 39,467 | | | 39,253 | | | 39,040 | | | 38,885 | | | |
| Goodwill | 128,679 | | | 128,679 | | | 128,679 | | | 128,679 | | | 136,793 | | | |
| Other intangible assets, net | 42,460 | | | 44,724 | | | 47,277 | | | 49,829 | | | 52,384 | | | |
| Accrued interest receivable and other assets | 226,236 | | | 206,694 | | | 196,956 | | | 209,199 | | | 210,425 | | | |
| Total assets | $ | 9,733,303 | | | $ | 10,165,163 | | | $ | 10,358,516 | | | $ | 9,686,067 | | | $ | 9,462,639 | | | |
| Liabilities and Stockholders’ Equity | | | | | | | | | | | |
| Noninterest-bearing deposits | $ | 2,008,671 | | | $ | 2,123,699 | | | $ | 2,247,782 | | | $ | 2,482,475 | | | $ | 2,667,489 | | | |
| Interest-bearing deposits | 4,728,263 | | | 4,738,460 | | | 4,779,023 | | | 4,505,940 | | | 4,361,423 | | | |
| Time deposits | 1,637,554 | | | 1,627,884 | | | 1,147,505 | | | 787,287 | | | 748,415 | | | |
| Total deposits | 8,374,488 | | | 8,490,043 | | | 8,174,310 | | | 7,775,702 | | | 7,777,327 | | | |
| FHLB advances and other borrowings | 12,213 | | | 342,861 | | | 875,502 | | | 639,230 | | | 450,456 | | | |
| Subordinated indebtedness | 196,825 | | | 196,746 | | | 201,845 | | | 201,765 | | | 201,687 | | | |
| Accrued expenses and other liabilities | 150,832 | | | 137,654 | | | 114,272 | | | 119,427 | | | 126,145 | | | |
| Total liabilities | 8,734,358 | | | 9,167,304 | | | 9,365,929 | | | 8,736,124 | | | 8,555,615 | | | |
| | | | | | | | | | | |
| Stockholders’ equity: | | | | | | | | | | | |
Common stock | 154,534 | | | 154,331 | | | 153,904 | | | 153,733 | | | 153,309 | | | |
| Additional paid-in capital | 525,434 | | | 524,302 | | | 522,124 | | | 520,669 | | | 518,376 | | | |
| Retained earnings | 491,706 | | | 472,105 | | | 455,040 | | | 435,416 | | | 410,572 | | | |
| Accumulated other comprehensive loss | (172,729) | | | (152,879) | | | (138,481) | | | (159,875) | | | (175,233) | | | |
| Total stockholders’ equity | 998,945 | | | 997,859 | | | 992,587 | | | 949,943 | | | 907,024 | | | |
| Total liabilities and stockholders’ equity | $ | 9,733,303 | | | $ | 10,165,163 | | | $ | 10,358,516 | | | $ | 9,686,067 | | | $ | 9,462,639 | | | |
Origin Bancorp, Inc.
Loan Data
(Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| At and For the Three Months Ended | |
| September 30,
2023 | | June 30,
2023 | | March 31,
2023 | | December 31,
2022 | | September 30,
2022 | | | |
| | | | | | | | | | | | |
| LHFI | (Dollars in thousands) | | | |
| | | | | | | | | | | | |
| Owner occupied commercial real estate | $ | 932,109 | | | $ | 915,861 | | | $ | 855,887 | | | $ | 843,006 | | | $ | 800,981 | | | | |
| Non-owner occupied commercial real estate | 1,503,782 | | | 1,512,303 | | | 1,529,513 | | | 1,461,672 | | | 1,373,366 | | | | |
| | | | | | | | | | | | |
| Owner occupied construction/land/land development | 252,168 | | | 259,984 | | | 252,617 | | | 265,838 | | | 248,602 | | | | |
| Non-owner occupied construction/land/land development | 824,588 | | | 762,255 | | | 696,009 | | | 679,787 | | | 604,709 | | | | |
| Residential real estate - single family | 1,338,382 | | | 1,284,955 | | | 1,231,022 | | | 1,173,316 | | | 1,104,277 | | | | |
| Residential real estate - multi-family | 349,787 | | | 348,703 | | | 357,469 | | | 304,222 | | | 294,905 | | | | |
| Total real estate loans | 5,200,816 | | | 5,084,061 | | | 4,922,517 | | | 4,727,841 | | | 4,426,840 | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| Commercial and industrial | 2,058,073 | | | 1,977,028 | | | 2,091,093 | | | 2,051,161 | | | 1,967,037 | | | | |
| Mortgage warehouse lines of credit | 286,293 | | | 537,627 | | | 337,529 | | | 284,867 | | | 460,573 | | | | |
| Consumer | 22,881 | | | 23,973 | | | 24,684 | | | 26,153 | | | 28,231 | | | | |
| Total LHFI | 7,568,063 | | | 7,622,689 | | | 7,375,823 | | | 7,090,022 | | | 6,882,681 | | | | |
| Less: allowance for loan credit losses ("ALCL") | 95,177 | | | 94,353 | | | 92,008 | | | 87,161 | | | 83,359 | | | | |
| LHFI, net | $ | 7,472,886 | | | $ | 7,528,336 | | | $ | 7,283,815 | | | $ | 7,002,861 | | | $ | 6,799,322 | | | | |
| | | | | | | | | | | | |
| Nonperforming assets | | | | | | | | | | | | |
| Nonperforming LHFI | | | | | | | | | | | | |
| Commercial real estate | $ | 942 | | | $ | 3,510 | | | $ | 3,100 | | | $ | 526 | | | $ | 431 | | | | |
| Construction/land/land development | 235 | | | 183 | | | 226 | | | 270 | | | 366 | | | | |
| Residential real estate | 13,236 | | | 16,345 | | | 8,969 | | | 7,712 | | | 7,641 | | | | |
| Commercial and industrial | 17,072 | | | 13,480 | | | 4,730 | | | 1,383 | | | 5,134 | | | | |
| Mortgage warehouse lines of credit | — | | | — | | | — | | | — | | | 385 | | | | |
| Consumer | 123 | | | 91 | | | 53 | | | 49 | | | 74 | | | | |
| Total nonperforming LHFI | 31,608 | | | 33,609 | | | 17,078 | | | 9,940 | | | 14,031 | | | | |
| Nonperforming loans held for sale | — | | | — | | | 4,646 | | | 3,933 | | | 2,698 | | | | |
| Total nonperforming loans | 31,608 | | | 33,609 | | | 21,724 | | | 13,873 | | | 16,729 | | | | |
| Repossessed assets | 3,939 | | | 908 | | | 806 | | | 806 | | | 1,781 | | | | |
| Total nonperforming assets | $ | 35,547 | | | $ | 34,517 | | | $ | 22,530 | | | $ | 14,679 | | | $ | 18,510 | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| Classified assets | $ | 67,960 | | | $ | 85,206 | | | $ | 86,975 | | | $ | 75,009 | | | $ | 71,562 | | | | |
Past due LHFI(1) | 20,347 | | | 19,836 | | | 11,498 | | | 10,932 | | | 10,866 | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| Allowance for loan credit losses | | | | | | | | | | | | |
| Balance at beginning of period | $ | 94,353 | | | $ | 92,008 | | | $ | 87,161 | | | $ | 83,359 | | | $ | 63,123 | | | | |
| Provision for loan credit losses | 3,510 | | | 4,264 | | | 6,158 | | | 3,982 | | | 15,787 | | | | |
| ALCL - BTH merger | — | | | — | | | — | | | — | | | 5,527 | | | | |
| Loans charged off | 3,202 | | | 2,751 | | | 2,293 | | | 2,537 | | | 1,628 | | | | |
| Loan recoveries | 516 | | | 832 | | | 982 | | | 2,357 | | | 550 | | | | |
| Net charge-offs | 2,686 | | | 1,919 | | | 1,311 | | | 180 | | | 1,078 | | | | |
| Balance at end of period | $ | 95,177 | | | $ | 94,353 | | | $ | 92,008 | | | $ | 87,161 | | | $ | 83,359 | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
Origin Bancorp, Inc.
Loan Data - Continued
(Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| At and For the Three Months Ended | |
| September 30,
2023 | | June 30,
2023 | | March 31,
2023 | | December 31,
2022 | | September 30,
2022 | | | |
| Credit quality ratios | (Dollars in thousands) | | | |
| Total nonperforming assets to total assets | 0.37 | % | | 0.34 | % | | 0.22 | % | | 0.15 | % | | 0.20 | % | | | |
| Total nonperforming loans to total loans | 0.42 | | | 0.44 | | | 0.29 | | | 0.19 | | | 0.24 | | | | |
| Nonperforming LHFI to LHFI | 0.42 | | | 0.44 | | | 0.23 | | | 0.14 | | | 0.20 | | | | |
| | | | | | | | | | | | |
| Past due LHFI to LHFI | 0.27 | | | 0.26 | | | 0.16 | | | 0.15 | | | 0.16 | | | | |
| ALCL to nonperforming LHFI | 301.12 | | | 280.74 | | | 538.75 | | | 876.87 | | | 594.11 | | | | |
| ALCL to total LHFI | 1.26 | | | 1.24 | | | 1.25 | | | 1.23 | | | 1.21 | | | | |
ALCL to total LHFI, adjusted(2) | 1.30 | | | 1.32 | | | 1.30 | | | 1.28 | | | 1.29 | | | | |
| Net charge-offs to total average LHFI (annualized) | 0.14 | | | 0.10 | | | 0.07 | | | 0.01 | | | 0.07 | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
____________________________
(1)Past due LHFI are defined as loans 30 days or more past due.
(2)The ALCL to total LHFI, adjusted is calculated by excluding the ALCL for warehouse loans from the total LHFI ALCL in the numerator and excluding the warehouse loans from the LHFI in the denominator. Due to their low-risk profile, mortgage warehouse loans require a disproportionately low allocation of the ALCL.
Origin Bancorp, Inc.
Average Balances and Yields/Rates
(Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended |
| September 30, 2023 | | June 30, 2023 | | September 30, 2022 |
| Average Balance | | | | Yield/Rate | | Average Balance | | | | Yield/Rate | | Average Balance | | | | Yield/Rate |
| | | | | | | | | | | | | | | | | |
| Assets | (Dollars in thousands) |
| Commercial real estate | $ | 2,428,969 | | | | | 5.73 | % | | $ | 2,406,625 | | | | | 5.56 | % | | $ | 2,046,411 | | | | | 4.64 | % |
| Construction/land/land development | 1,044,180 | | | | | 7.04 | | | 972,032 | | | | | 6.70 | | | 760,682 | | | | | 5.20 | |
| Residential real estate | 1,663,291 | | | | | 5.06 | | | 1,615,211 | | | | | 4.91 | | | 1,249,746 | | | | | 4.36 | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Commercial and industrial ("C&I") | 2,024,675 | | | | | 7.62 | | | 2,059,285 | | | | | 7.59 | | | 1,816,912 | | | | | 5.64 | |
| Mortgage warehouse lines of credit | 376,275 | | | | | 7.21 | | | 396,348 | | | | | 6.49 | | | 491,584 | | | | | 4.53 | |
| Consumer | 23,704 | | | | | 7.74 | | | 24,812 | | | | | 7.26 | | | 24,137 | | | | | 6.80 | |
| LHFI | 7,561,094 | | | | | 6.35 | | | 7,474,313 | | | | | 6.18 | | | 6,389,472 | | | | | 4.94 | |
| Loans held for sale | 11,829 | | | | | 5.81 | | | 22,504 | | | | | 4.28 | | | 29,927 | | | | | 4.12 | |
| Loans receivable | 7,572,923 | | | | | 6.35 | | | 7,496,817 | | | | | 6.18 | | | 6,419,399 | | | | | 4.93 | |
| Investment securities-taxable | 1,310,459 | | | | | 2.48 | | | 1,371,361 | | | | | 2.43 | | | 1,547,848 | | | | | 2.00 | |
| Investment securities-nontaxable | 216,700 | | | | | 2.35 | | | 220,345 | | | | | 2.33 | | | 317,175 | | | | | 2.69 | |
| Non-marketable equity securities held in other financial institutions | 58,421 | | | | | 6.47 | | | 79,143 | | | | | 5.92 | | | 73,819 | | | | | 2.10 | |
| Interest-bearing balances due from banks | 279,383 | | | | | 5.42 | | | 476,555 | | | | | 5.15 | | | 206,781 | | | | | 2.09 | |
| | | | | | | | | | | | | | | | | |
| Total interest-earning assets | 9,437,886 | | | | | 5.69 | | | 9,644,221 | | | | | 5.50 | | | 8,565,022 | | | | | 4.23 | |
Noninterest-earning assets(1) | 597,678 | | | | | | | 546,135 | | | | | | | 637,399 | | | | | |
| Total assets | $ | 10,035,564 | | | | | | | $ | 10,190,356 | | | | | | | $ | 9,202,421 | | | | | |
| | | | | | | | | | | | | | | | | |
| Liabilities and Stockholders’ Equity | | | | | | | | | | | | | | | | |
| Liabilities | | | | | | | | | | | | | | | | | |
| Interest-bearing liabilities | | | | | | | | | | | | | | | | | |
| Savings and interest-bearing transaction accounts | $ | 4,728,211 | | | | | 3.28 | % | | $ | 4,740,963 | | | | | 2.90 | % | | $ | 4,157,092 | | | | | 0.66 | % |
| Time deposits | 1,626,935 | | | | | 4.04 | | | 1,378,659 | | | | | 3.56 | | | 669,900 | | | | | 0.51 | |
| Total interest-bearing deposits | 6,355,146 | | | | | 3.47 | | | 6,119,622 | | | | | 3.05 | | | 4,826,992 | | | | | 0.64 | |
| | | | | | | | | | | | | | | | | |
| FHLB advances and other borrowings | 230,815 | | | | | 5.51 | | | 606,148 | | | | | 5.26 | | | 538,020 | | | | | 2.00 | |
| | | | | | | | | | | | | | | | | |
| Subordinated indebtedness | 196,792 | | | | | 5.07 | | | 200,160 | | | | | 5.09 | | | 186,803 | | | | | 4.81 | |
| Total interest-bearing liabilities | 6,782,753 | | | | | 3.59 | | | 6,925,930 | | | | | 3.30 | | | 5,551,815 | | | | | 0.91 | |
| Noninterest-bearing liabilities | | | | | | | | | | | | | | | | | |
| Noninterest-bearing deposits | 2,088,183 | | | | | | | 2,139,973 | | | | | | | 2,582,500 | | | | | |
Other liabilities(1) | 151,716 | | | | | | | 127,630 | | | | | | | 129,354 | | | | | |
| Total liabilities | 9,022,652 | | | | | | | 9,193,533 | | | | | | | 8,263,669 | | | | | |
| Stockholders’ Equity | 1,012,912 | | | | | | | 996,823 | | | | | | | 938,752 | | | | | |
| Total liabilities and stockholders’ equity | $ | 10,035,564 | | | | | | | $ | 10,190,356 | | | | | | | $ | 9,202,421 | | | | | |
| Net interest spread | | | | | 2.10 | % | | | | | | 2.20 | % | | | | | | 3.32 | % |
| NIM | | | | | 3.12 | | | | | | | 3.13 | | | | | | | 3.64 | |
NIM - FTE(2) | | | | | 3.14 | | | | | | | 3.16 | | | | | | | 3.68 | |
NIM - FTE, adjusted(3) | | | | | 3.14 | | | | | | | 3.14 | | | | | | | 3.61 | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
____________________________
(1)Includes Government National Mortgage Association (“GNMA”) repurchase average balances of $29.1 million for the three months ended September 30, 2022. There were no GNMA average repurchase balances at either September 30, 2023, or June 30, 2023. The GNMA repurchase asset and liability are recorded as equal offsetting amounts in the consolidated balance sheets, with the asset included in Loans held for sale and the liability included in FHLB advances and other borrowings. During the quarter ended December 31, 2022, the Company entered into a contract to sell the servicing of these GNMA loans to a third party which closed during the quarter ended March 31, 2023.
(2)In order to present pre-tax income and resulting yields on tax-exempt investments comparable to those on taxable investments, a tax-equivalent adjustment has been computed. This adjustment also includes income tax credits received on Qualified School Construction Bonds.
(3)NIM - FTE, adjusted, is calculated by removing the net purchase accounting accretion from the net interest income.
Origin Bancorp, Inc.
Non-GAAP Financial Measures
(Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| At and For the Three Months Ended |
| September 30,
2023 | | June 30,
2023 | | March 31,
2023 | | December 31,
2022 | | September 30,
2022 |
| | | | | | | | | |
| (Dollars in thousands, except per share amounts) |
| |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| Calculation of adjusted net income: | | | | | | | | | |
| Net interest income after provision for credit losses | $ | 70,615 | | | $ | 70,985 | | | $ | 70,950 | | | $ | 80,125 | | | $ | 61,581 | |
| Add: CECL provision for non-PCD loans | — | | | — | | | — | | | — | | | 14,890 | |
| Adjusted net interest income after provision for credit losses | 70,615 | | | 70,985 | | | 70,950 | | | 80,125 | | | 76,471 | |
| | | | | | | | | |
| Total noninterest income | $ | 18,119 | | | $ | 15,636 | | | $ | 16,384 | | | $ | 13,429 | | | $ | 13,723 | |
| Less: GNMA MSR impairment | — | | | — | | | — | | | — | | | (1,950) | |
| Less: (loss) gain on sales of securities, net | (7,173) | | | — | | | 144 | | | — | | | 1,664 | |
| Less: gain on sub-debt repurchase | — | | | 471 | | | — | | | — | | | — | |
| Less: positive valuation adjustment on non-marketable equity securities | 10,096 | | | — | | | — | | | — | | | — | |
| | | | | | | | | |
| Adjusted total noninterest income | 15,196 | | | 15,165 | | | 16,240 | | | 13,429 | | | 14,009 | |
| | | | | | | | | |
| Total noninterest expense | $ | 58,663 | | | $ | 58,887 | | | $ | 56,760 | | | $ | 57,254 | | | $ | 56,241 | |
| Less: merger-related expenses | — | | | — | | | — | | | 1,179 | | | 3,614 | |
| Adjusted total noninterest expense | 58,663 | | | 58,887 | | | 56,760 | | | 56,075 | | | 52,627 | |
| | | | | | | | | |
| Income tax expense | $ | 5,758 | | | $ | 5,974 | | | $ | 6,272 | | | $ | 6,822 | | | $ | 2,820 | |
| Add: income tax expense on adjustment items | (614) | | | (99) | | | (30) | | | 248 | | | 3,946 | |
| Adjusted income tax expense | 5,144 | | | 5,875 | | | 6,242 | | | 7,070 | | | 6,766 | |
| | | | | | | | | |
| Net income | $ | 24,313 | | | $ | 21,760 | | | $ | 24,302 | | | $ | 29,478 | | | $ | 16,243 | |
| Adjusted net income | $ | 22,004 | | | $ | 21,388 | | | $ | 24,188 | | | $ | 30,409 | | | $ | 31,087 | |
| | | | | | | | | |
| Calculation of adjusted PTPP earnings: | | | | | | | | | |
| Provision for credit losses | $ | 3,515 | | | $ | 4,306 | | | $ | 6,197 | | | $ | 4,624 | | | $ | 16,942 | |
| Less: CECL provision for non-PCD loans | — | | | — | | | — | | | — | | | 14,890 | |
| Adjusted provision for credit losses | $ | 3,515 | | | $ | 4,306 | | | $ | 6,197 | | | $ | 4,624 | | | $ | 2,052 | |
| | | | | | | | | |
| Adjusted net income | $ | 22,004 | | | $ | 21,388 | | | $ | 24,188 | | | $ | 30,409 | | | $ | 31,087 | |
| Add: adjusted provision for credit losses | 3,515 | | | 4,306 | | | 6,197 | | | 4,624 | | | 2,052 | |
| Add: adjusted income tax expense | 5,144 | | | 5,875 | | | 6,242 | | | 7,070 | | | 6,766 | |
| Adjusted PTPP Earnings | $ | 30,663 | | | $ | 31,569 | | | $ | 36,627 | | | $ | 42,103 | | | $ | 39,905 | |
| | | | | | | | | |
| | | | | | | | | |
Origin Bancorp, Inc.
Non-GAAP Financial Measures - Continued
(Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| At and For the Three Months Ended |
| September 30,
2023 | | June 30,
2023 | | March 31,
2023 | | December 31,
2022 | | September 30,
2022 |
| | | | | | | | | |
| (Dollars in thousands, except per share amounts) |
| Calculation of adjusted dilutive EPS: | | | | | | | | | |
| Numerator: | | | | | | | | | |
| Adjusted net income | $ | 22,004 | | | $ | 21,388 | | | $ | 24,188 | | | $ | 30,409 | | | $ | 31,087 | |
| Denominator: | | | | | | | | | |
| Weighted average diluted common shares outstanding | 30,943,860 | | | 30,872,834 | | | 30,882,156 | | | 30,867,511 | | | 28,481,619 | |
| | | | | | | | | |
| Diluted earnings per share | $ | 0.79 | | | $ | 0.70 | | | $ | 0.79 | | | $ | 0.95 | | | $ | 0.57 | |
| Adjusted diluted earnings per share | 0.71 | | | 0.69 | | | 0.78 | | | 0.99 | | | 1.09 | |
| | | | | | | | | |
| Calculation of adjusted ROAA and adjusted ROAE: | | | | | | | | |
| Adjusted net income | $ | 22,004 | | | $ | 21,388 | | | $ | 24,188 | | | $ | 30,409 | | | $ | 31,087 | |
| Divided by number of days in the quarter | 92 | | | 91 | | | 90 | | | 92 | | | 92 | |
| Multiplied by number of days in the year | 365 | | | 365 | | | 365 | | | 365 | | | 365 | |
| Annualized adjusted net income | $ | 87,298 | | | $ | 85,787 | | | $ | 98,096 | | | $ | 120,644 | | | $ | 123,334 | |
| | | | | | | | | |
| Divided by total average assets | 10,035,564 | | | 10,190,356 | | | 9,783,602 | | | 9,530,543 | | | 9,202,421 | |
| ROAA (annualized) | 0.96 | % | | 0.86 | % | | 1.01 | % | | 1.23 | % | | 0.70 | % |
| Adjusted ROAA (annualized) | 0.87 | | | 0.84 | | | 1.00 | | | 1.27 | | | 1.34 | |
| | | | | | | | | |
| Divided by total average stockholders' equity | $ | 1,012,912 | | | $ | 996,823 | | | $ | 976,044 | | | $ | 913,850 | | | $ | 938,752 | |
| ROAE (annualized) | 9.52 | % | | 8.76 | % | | 10.10 | % | | 12.80 | % | | 6.86 | % |
| Adjusted ROAE (annualized) | 8.62 | | | 8.61 | | | 10.05 | | | 13.20 | | | 13.14 | |
| | | | | | | | | |
| Calculation of adjusted PTPP ROAA and adjusted PTPP ROAE: | | | | | | |
| Adjusted PTPP earnings | $ | 30,663 | | | $ | 31,569 | | | $ | 36,627 | | | $ | 42,103 | | | $ | 39,905 | |
| Divided by number of days in the quarter | 92 | | | 91 | | | 90 | | | 92 | | | 92 | |
| Multiplied by the number of days in the year | 365 | | | 365 | | | 365 | | | 365 | | | 365 | |
| Adjusted PTPP earnings, annualized | $ | 121,652 | | | $ | 126,623 | | | $ | 148,543 | | | $ | 167,039 | | | $ | 158,319 | |
| | | | | | | | | |
| Divided by total average assets | $ | 10,035,564 | | | $ | 10,190,356 | | | $ | 9,783,602 | | | $ | 9,530,543 | | | $ | 9,202,421 | |
| Adjusted PTPP ROAA(annualized) | 1.21 | % | | 1.24 | % | | 1.52 | % | | 1.75 | % | | 1.72 | % |
| | | | | | | | | |
| Divided by total average stockholders' equity | $ | 1,012,912 | | | $ | 996,823 | | | $ | 976,044 | | | $ | 913,850 | | | $ | 938,752 | |
| Adjusted PTPP ROAE (annualized) | 12.01 | % | | 12.70 | % | | 15.22 | % | | 18.28 | % | | 16.86 | % |
| | | | | | | | | |
Origin Bancorp, Inc.
Non-GAAP Financial Measures - Continued
(Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| At and For the Three Months Ended |
| September 30,
2023 | | June 30,
2023 | | March 31,
2023 | | December 31,
2022 | | September 30,
2022 |
| | | | | | | | | |
| (Dollars in thousands, except per share amounts) |
| Calculation of tangible common equity to tangible common assets, book value per common share and adjusted tangible book value per common share: | | |
| Total assets | $ | 9,733,303 | | | $ | 10,165,163 | | | $ | 10,358,516 | | | $ | 9,686,067 | | | $ | 9,462,639 | |
| Less: goodwill | 128,679 | | | 128,679 | | | 128,679 | | | 128,679 | | | 136,793 | |
| Less: other intangible assets, net | 42,460 | | | 44,724 | | | 47,277 | | | 49,829 | | | 52,384 | |
| Tangible assets | 9,562,164 | | | 9,991,760 | | | 10,182,560 | | | 9,507,559 | | | 9,273,462 | |
| | | | | | | | | |
| Total common stockholders’ equity | $ | 998,945 | | | $ | 997,859 | | | $ | 992,587 | | | $ | 949,943 | | | $ | 907,024 | |
| Less: goodwill | 128,679 | | | 128,679 | | | 128,679 | | | 128,679 | | | 136,793 | |
| Less: other intangible assets, net | 42,460 | | | 44,724 | | | 47,277 | | | 49,829 | | | 52,384 | |
| Tangible common equity | 827,806 | | | 824,456 | | | 816,631 | | | 771,435 | | | 717,847 | |
| Less: accumulated other comprehensive loss | (172,729) | | | (152,879) | | | (138,481) | | | (159,875) | | | (175,233) | |
| Adjusted tangible common equity | 1,000,535 | | | 977,335 | | | 955,112 | | | 931,310 | | | 893,080 | |
| Divided by common shares outstanding at the end of the period | 30,906,716 | | | 30,866,205 | | | 30,780,853 | | | 30,746,600 | | | 30,661,734 | |
| Book value per common share | $ | 32.32 | | | $ | 32.33 | | | $ | 32.25 | | | $ | 30.90 | | | $ | 29.58 | |
| Tangible book value per common share | 26.78 | | | 26.71 | | | 26.53 | | | 25.09 | | | 23.41 | |
| Adjusted tangible book value per common share | 32.37 | | | 31.66 | | | 31.03 | | | 30.29 | | | 29.13 | |
| Tangible common equity to tangible assets | 8.66 | % | | 8.25 | % | | 8.02 | % | | 8.11 | % | | 7.74 | % |
| | | | | | | | | |
| Calculation of ROATCE and adjusted ROATCE: | | | | | | | | |
| Net income | $ | 24,313 | | | $ | 21,760 | | | $ | 24,302 | | | $ | 29,478 | | | $ | 16,243 | |
| Divided by number of days in the quarter | 92 | | | 91 | | | 90 | | | 92 | | | 92 | |
| Multiplied by number of days in the year | 365 | | | 365 | | | 365 | | | 365 | | | 365 | |
| Annualized net income | $ | 96,459 | | | $ | 87,279 | | | $ | 98,558 | | | $ | 116,951 | | | $ | 64,442 | |
| | | | | | | | | |
| Adjusted net income | $ | 22,004 | | | $ | 21,388 | | | $ | 24,188 | | | $ | 30,409 | | | $ | 31,087 | |
| Divided by number of days in the quarter | 92 | | | 91 | | | 90 | | | 92 | | | 92 | |
| Multiplied by number of days in the year | 365 | | | 365 | | | 365 | | | 365 | | | 365 | |
| Annualized adjusted net income | $ | 87,298 | | | $ | 85,787 | | | $ | 98,096 | | | $ | 120,644 | | | $ | 123,334 | |
| | | | | | | | | |
| Total average common stockholders’ equity | $ | 1,012,912 | | | $ | 996,823 | | | $ | 976,044 | | | $ | 913,850 | | | $ | 938,752 | |
| Less: average goodwill | 128,679 | | | 128,679 | | | 128,679 | | | 131,302 | | | 95,696 | |
| Less: average other intangible assets, net | 43,901 | | | 46,379 | | | 48,950 | | | 51,495 | | | 40,918 | |
| Average tangible common equity | 840,332 | | | 821,765 | | | 798,415 | | | 731,053 | | | 802,138 | |
| | | | | | | | | |
| ROATCE | 11.48 | % | | 10.62 | % | | 12.34 | % | | 16.00 | % | | 8.03 | % |
| Adjusted ROATCE | 10.39 | | | 10.44 | | | 12.29 | | | 16.50 | | | 15.38 | |
| | | | | | | | | |
Origin Bancorp, Inc.
Non-GAAP Financial Measures- Continued
(Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| At and For the Three Months Ended |
| September 30,
2023 | | June 30,
2023 | | March 31,
2023 | | December 31,
2022 | | September 30,
2022 |
| | | | | | | | | |
| (Dollars in thousands, except per share amounts) |
| Calculation of adjusted efficiency ratio: | | | | | | | | | |
| Total noninterest expense | $ | 58,663 | | | $ | 58,887 | | | $ | 56,760 | | | $ | 57,254 | | | $ | 56,241 | |
| Less: insurance and mortgage noninterest expense | 8,579 | | | 9,156 | | | 8,033 | | | 8,031 | | | 8,479 | |
| Less: merger-related expenses | — | | | — | | | — | | | 1,179 | | | 3,614 | |
| Adjusted total noninterest expense | 50,084 | | | 49,731 | | | 48,727 | | | 48,044 | | | 44,148 | |
| | | | | | | | | |
| Net interest income | $ | 74,130 | | | $ | 75,291 | | | $ | 77,147 | | | $ | 84,749 | | | $ | 78,523 | |
| Less: insurance and mortgage net interest income | 2,120 | | | 1,574 | | | 1,493 | | | 1,376 | | | 1,208 | |
| Add: Total noninterest income | 18,119 | | | 15,636 | | | 16,384 | | | 13,429 | | | 13,723 | |
| Less: insurance and mortgage noninterest income | 7,335 | | | 7,587 | | | 8,792 | | | 6,255 | | | 4,737 | |
| | | | | | | | | |
| | | | | | | | | |
| Less: positive valuation adjustment on non-marketable equity securities | 10,096 | | | — | | | — | | | — | | | — | |
| Less: (loss) gain on sale of securities, net | (7,173) | | | — | | | 144 | | | — | | | 1,664 | |
| Less: gain on sub-debt repurchase | — | | | 471 | | | — | | | — | | | — | |
| Adjusted total revenue | 79,871 | | | 81,295 | | | 83,102 | | | 90,547 | | | 84,637 | |
| | | | | | | | | |
| Efficiency ratio | 63.59 | % | | 64.76 | % | | 60.69 | % | | 58.32 | % | | 60.97 | % |
| Adjusted efficiency ratio | 62.71 | | | 61.17 | | | 58.64 | | | 53.06 | | | 52.16 | |
| |
| | | | | | | | | |
Origin Bancorp, Inc.
Non-GAAP Financial Measures - Continued
(Unaudited)
| | | | | | | | | | | |
| Nine Months Ended September 30, |
| 2023 | | 2022 |
| | | |
| (Dollars in thousands, except per share amounts) |
| Calculation of adjusted net income: | | | |
| Net interest income after provision for credit losses | $ | 212,550 | | | $ | 170,462 | |
| Add: CECL provision for non-PCD loans | — | | | 14,890 | |
| Adjusted net interest income after provision for credit losses | 212,550 | | | 185,352 | |
| | | |
| Total noninterest income | $ | 50,139 | | | $ | 43,845 | |
| Less: GNMA MSR impairment | — | | | (1,950) | |
| Less: (loss) gain on sales of securities, net | (7,029) | | | 1,664 | |
| Less: gain on sub-debt repurchase | 471 | | | — | |
| Less: positive valuation adjustment on non-marketable equity securities | 10,096 | | | — | |
| Adjusted total noninterest income | 46,601 | | | 44,131 | |
| | | |
| Total noninterest expense | $ | 174,310 | | | $ | 143,165 | |
| Less: merger-related expense | — | | | 4,992 | |
| Adjusted total noninterest expense | 174,310 | | | 138,173 | |
| | | |
| Income tax expense | $ | 18,004 | | | $ | 12,905 | |
| Add: income tax expense on adjustment items | (743) | | | 4,235 | |
| Adjusted income tax expense | 17,261 | | | 17,140 | |
| | | |
| Net Income | $ | 70,375 | | | $ | 58,237 | |
| Adjusted net income | $ | 67,580 | | | $ | 74,170 | |
| | | |
| Calculation of adjusted PTPP earnings: | | | |
| Provision for credit losses | $ | 14,018 | | | $ | 20,067 | |
| Less: CECL provision for non-PCD loans | — | | | 14,890 | |
| Adjusted provision for credit losses | $ | 14,018 | | | $ | 5,177 | |
| | | |
| Adjusted net income | $ | 67,580 | | | $ | 74,170 | |
| Add: provision for credit losses | 14,018 | | | 5,177 | |
| Add: adjusted income tax expense | 17,261 | | | 17,140 | |
| Adjusted PTPP earnings | $ | 98,859 | | | $ | 96,487 | |
| | | |
| Calculation of adjusted dilutive EPS: | | | |
| Numerator: | | | |
| Adjusted net income | $ | 67,580 | | | $ | 74,170 | |
| Denominator: | | | |
| Weighted average diluted common shares outstanding | 30,903,222 | | | 25,366,807 | |
| Diluted earnings per share | $ | 2.28 | | | $ | 2.30 | |
| Adjusted diluted earnings per share | 2.19 | | | 2.92 | |
| | | |
Origin Bancorp, Inc.
Non-GAAP Financial Measures - Continued
(Unaudited)
| | | | | | | | | | | |
| Nine Months Ended September 30, |
| 2023 | | 2022 |
| | | |
| (Dollars in thousands, except per share amounts) |
| Calculation of adjusted ROAA and adjusted ROAE: | | | |
| Adjusted net income | $ | 67,580 | | | $ | 74,170 | |
| Divided by the year-to-date number of days | 273 | | | 273 | |
| Multiplied by number of days in the year | 365 | | | 365 | |
| Annualized adjusted net income | $ | 90,354 | | | $ | 99,165 | |
| | | |
| Divided by total average assets | $ | 10,004,097 | | | $ | 8,401,701 | |
| ROAA (annualized) | 0.94 | % | | 0.93 | % |
| Adjusted ROAA (annualized) | 0.90 | | | 1.18 | |
| | | |
| Divided by total average stockholders' equity | $ | 995,395 | | | $ | 776,985 | |
| ROAE (annualized) | 9.45 | % | | 10.02 | % |
| Adjusted ROAE (annualized) | 9.08 | | | 12.76 | |
| | | |
| Calculation of adjusted PTPP ROAA and adjusted PTPP ROAE: | | | |
| Adjusted PTPP Earnings | $ | 98,859 | | | $ | 96,487 | |
| Divided by the year-to-date number of days | 273 | | | 273 | |
| Multiplied by number of days in the year | 365 | | | 365 | |
| Annualized adjusted PTPP Earnings | $ | 132,174 | | | $ | 129,003 | |
| | | |
| Divided by total average assets | $ | 10,004,097 | | | $ | 8,401,701 | |
| Adjusted PTPP ROAA (annualized) | 1.32 | % | | 1.54 | % |
| | | |
| Divided by total average stockholders' equity | $ | 995,395 | | | $ | 776,985 | |
| Adjusted PTPP ROAE (annualized) | 13.28 | % | | 16.60 | % |
| | | |
|
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Origin Bancorp, Inc.
Non-GAAP Financial Measures - Continued
(Unaudited)
| | | | | | | | | | | |
| Nine Months Ended September 30, |
| 2023 | | 2022 |
| | | |
| (Dollars in thousands, except per share amounts) |
| Calculation of ROATCE and adjusted ROATCE: | | |
| Net income | $ | 70,375 | | | $ | 58,237 | |
| Divided by the year-to-date number of days | 273 | | | 273 | |
| Multiplied by number of days in the year | 365 | | | 365 | |
| Annualized net income | $ | 94,091 | | | $ | 77,863 | |
| | | |
| Adjusted net income | $ | 67,580 | | | $ | 74,170 | |
| Divided by the year-to-date number of days | 273 | | | 273 | |
| Multiplied by number of days in the year | 365 | | | 365 | |
| Annualized adjusted net income | $ | 90,354 | | | $ | 99,165 | |
| | | |
| Total average common stockholders’ equity | $ | 995,395 | | | $ | 776,985 | |
| Less: average goodwill | 128,679 | | | 54,963 | |
| Less: average other intangible assets, net | 46,391 | | | 24,733 | |
| Average tangible common equity | 820,325 | | | 697,289 | |
| | | |
| ROATCE | 11.47 | % | | 11.17 | % |
| Adjusted ROATCE | 11.01 | | | 14.22 | |
| | | |
| Calculation of adjusted efficiency ratio: | | | |
| Total noninterest expense | $ | 174,310 | | | $ | 143,165 | |
| Less: insurance and mortgage noninterest expense | 25,768 | | | 25,502 | |
| Less: merger-related expenses | — | | | 4,992 | |
| | | |
| Adjusted total noninterest expense | 148,542 | | | 112,671 | |
| | | |
| Net interest income | $ | 226,568 | | | $ | 190,529 | |
| Less: insurance and mortgage net interest income | 5,187 | | | 3,165 | |
| Add: total noninterest income | 50,139 | | | 43,845 | |
| Less: insurance and mortgage noninterest income | 23,714 | | | 23,336 | |
| | | |
| | | |
| Less: (loss) gain on sales of securities, net | (7,029) | | | 1,664 | |
| Less: gain on sub-debt repurchase | 471 | | | — | |
| Less: positive valuation adjustment on non-marketable equity securities | 10,096 | | | — | |
| Adjusted total revenue | 244,268 | | | 206,209 | |
| | | |
| Efficiency ratio | 62.99 | % | | 61.08 | % |
| Adjusted efficiency ratio | 60.81 | | | 54.64 | |
3Q TWENTY23 INVESTOR PRESENTATION ORIGIN BANCORP, INC.
2 FORWARD-LOOKING STATEMENTS AND NON-GAAP MEASURES This presentation contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include information regarding Origin Bancorp, Inc.'s ("Origin" or the "Company") future financial performance, business and growth strategies, projected plans and objectives, and any expected purchases of its outstanding common stock, and related transactions and other projections based on macroeconomic and industry trends, including changes to interest rates by the Federal Reserve and the resulting impact on Origin's results of operations, estimated forbearance amounts and expectations regarding the Company's liquidity, including in connection with advances obtained from the FHLB, which are all subject to change and may be inherently unreliable due to the multiple factors that impact broader economic and industry trends, and any such changes may be material. Such forward-looking statements are based on various facts and derived utilizing important assumptions and current expectations, estimates and projections about Origin and its subsidiaries, any of which may change over time and some of which may be beyond Origin's control. Statements or statistics preceded by, followed by or that otherwise include the words "assumes," "anticipates," "believes," "estimates," "expects," “foresees,” "intends," "plans," "projects," and similar expressions or future or conditional verbs such as "could," "may," “might,” "should," "will," and "would" and variations of such terms are generally forward-looking in nature and not historical facts, although not all forward-looking statements include the foregoing words. Further, certain factors that could affect the Company's future results and cause actual results to differ materially from those expressed in the forward-looking statements include, but are not limited to: potential impacts of adverse developments in the banking industry highlighted by high-profile bank failures, including impacts on customer confidence, deposit outflows, liquidity and the regulatory response thereto; the impact of current and future economic conditions generally and in the financial services industry, nationally and within Origin’s primary market areas, including the effects of declines in the real estate market, high unemployment rates, inflationary pressures, elevated interest rates and slowdowns in economic growth, as well as the financial stress on borrowers and changes to customer and client behavior as a result of the foregoing; deterioration of Origin's asset quality; factors that can impact the performance of Origin's loan portfolio, including real estate values and liquidity in Origin's primary market areas; the financial health of Origin's commercial borrowers and the success of construction projects that Origin finances; changes in the value of collateral securing Origin's loans; developments in our mortgage banking business, including loan modifications, general demand, and the effects of judicial or regulatory requirements or guidance; Origin's ability to anticipate interest rate changes and manage interest rate risk (including the impact of higher interest rates on macroeconomic conditions, competition, and the cost of doing business); the effectiveness of Origin's risk management framework and quantitative models; Origin's inability to receive dividends from Origin Bank and to service debt, pay dividends to Origin's common stockholders, repurchase Origin's shares of common stock and satisfy obligations as they become due; the impact of labor pressures; changes in Origin's operation or expansion strategy or Origin's ability to prudently manage its growth and execute its strategy; changes in management personnel; Origin's ability to maintain important customer relationships, reputation or otherwise avoid liquidity risks; increasing costs as Origin grows deposits; operational risks associated with Origin's business; volatility and direction of market interest rates; significant turbulence or a disruption in the capital or financial markets and the effect of a fall in stock market prices on our investment securities; increased competition in the financial services industry, particularly from regional and national institutions, as well as from fintech companies, difficult market conditions and unfavorable economic trends in the United States generally, and particularly in the market areas in which Origin operates and in which its loans are concentrated; an increase in unemployment levels and slowdowns in economic growth; Origin's level of nonperforming assets and the costs associated with resolving any problem loans including litigation and other costs; the credit risk associated with the substantial amount of commercial real estate, construction and land development, and commercial loans in Origin's loan portfolio; changes in laws, rules, regulations, interpretations or policies relating to financial institutions, and potential expenses associated with complying with such regulations; periodic changes to the extensive body of accounting rules and best practices; further government intervention in the U.S. financial system; a deterioration of the credit rating for U.S. long-term sovereign debt or actions that the U.S. government may take to avoid exceeding the debt ceiling, compliance with governmental and regulatory requirements, including the Dodd-Frank Wall Street Reform and Consumer Protection Act and others relating to banking, consumer protection, securities, and tax matters; Origin's ability to comply with applicable capital and liquidity requirements, including its ability to generate liquidity internally or raise capital on favorable terms, including continued access to the debt and equity capital markets; changes in the utility of Origin's non-GAAP liquidity measurements and its underlying assumptions or estimates; uncertainty regarding the transition away from the London Interbank Offered Rate ("LIBOR") and the impact of any replacement alternatives such as the Secured Overnight Financing Rate ("SOFR") on Origin's business; possible changes in trade, monetary, and fiscal policies, laws, and regulations and other activities of governments, agencies and similar organizations; natural disasters and adverse weather events, acts of terrorism, an outbreak of hostilities (including the impacts related to or resulting from Russia's military action in Ukraine, or the conflict in Israel and surrounding areas, including the imposition of additional sanctions and export controls, as well as the broader impacts to financial markets and the global macroeconomic and geopolitical environments), regional or national protests and civil unrest (including any resulting branch closures or property damage), widespread illness or public health outbreaks or other international or domestic calamities, and other matters beyond Origin's control; fraud or misconduct by internal or external actors, system failures, cybersecurity threats and/or security breaches and the cost of defending against them. For a discussion of these and other risks that may cause actual results to differ from expectations, please refer to the sections titled "Cautionary Note Regarding Forward-Looking Statements" and "Risk Factors" in Origin's most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission ("SEC") and any updates to those sections set forth in Origin's subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. If one or more events related to these or other risks or uncertainties materialize, or if Origin's underlying assumptions prove to be incorrect, actual results may differ materially from what Origin anticipates. Accordingly, you should not place undue reliance on any forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made, and Origin does not undertake any obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments, or otherwise. New risks and uncertainties arise from time to time, and it is not possible for Origin to predict those events or how they may affect Origin. In addition, Origin cannot assess the impact of each factor on Origin's business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. All forward-looking statements, expressed or implied, included in this communication are expressly qualified in their entirety by this cautionary statement. This cautionary statement should also be considered in connection with any subsequent written or oral forward-looking statements that Origin or persons acting on Origin's behalf may issue. Annualized, pro forma, adjusted projected and estimated numbers are used for illustrative purposes only, are not forecasts, and may not reflect actual results. Certain prior period amounts have been reclassified to conform to the current year financial statement presentations. These reclassifications did not impact previously reported net income or comprehensive income. Origin reports its results in accordance with generally accepted accounting principles in the United States ("GAAP"). However, management believes that certain supplemental non-GAAP financial measures may provide meaningful information to investors that is useful in understanding Origin's results of operations and underlying trends in its business. However, non-GAAP financial measures are supplemental and should be viewed in addition to, and not as an alternative for, Origin's reported results prepared in accordance with GAAP. The following are the non-GAAP measures used in this presentation: adjusted net income, adjusted PTPP earnings, adjusted diluted EPS, NIM-FTE, adjusted, adjusted ROAA, adjusted PTPP ROAA, adjusted ROAE, adjusted PTPP ROAE, tangible book value per common share, adjusted tangible book value per common share, tangible common equity to tangible assets, ROATCE, adjusted ROATCE and adjusted efficiency ratio. Please see “Reconciliation of Non-GAAP Financial Measures” at the end of this presentation for reconciliations of non-GAAP measures to the most directly comparable financial measures calculated in accordance with GAAP.
ORIGIN BANCORP, INC. _______ 17 LOUISIANA Entry: 1912 Loans: $1,487 Deposits: $2,815 DOLLARS IN MILLIONS, UNAUDITED (2) (3) 3 ORIGIN COMPANY SNAPSHOT • Origin Bancorp, Inc. is the holding company for Origin Bank. • Origin Bank was founded in 1912 and is headquartered in Choudrant, LA. • 60(1) banking centers operating across Texas, Louisiana & Mississippi DEPOSITS & LOANS BY STATE Note: All financial information is as of September 30, 2023. * Please see slide 30 for all footnote references included above. MISSISSIPPI Entry: 2010 Loans: $572 Deposits: $641 8% 8% 37% 20% 55% 72% Loans (3)Deposits (2) ICS ICS 9 10 18 6 TEXAS Dallas/Fort Worth Houston East Texas Entry: 2008 Entry: 2013 Entry: 2022 Loans: $2,981 Loans: $1,806 Loans: $436 Deposits: $2,103 Deposits: $1,167 Deposits: $861 Total Texas Loans: $5,223 Total Texas Deposits: $4,131
ORIGIN BANCORP, INC. _______ 4 A UNIQUE & DEFINED CULTURE
ORIGIN BANCORP, INC. _______ • NIM-FTE was 3.14% for the quarter ended September 30, 2023, representing a two bp decline compared to the linked quarter. • LHFI to deposits, excluding mortgage warehouse lines of credit, were 87.0% at September 30, 2023, compared to 83.5% at June 30, 2023. • Cash and liquid securities as a percentage of total assets were 11.6% at September 30, 2023, compared to 11.1% at June 30, 2023. • Book value per common share(7) was $32.32 at September 30, 2023, reflecting a decrease of $0.01, compared to the linked quarter. • Tangible book value per common share(4)(7) was $26.78 at September 30, 2023, reflecting an increase of $0.07, or 0.3%, compared to the linked quarter. • Adjusted tangible book value per common share(4) was $32.37 at September 30, 2023, reflecting an increase of $0.71, or 2.2%, compared to the linked quarter. • September 30, 2023, Company level common equity Tier 1 capital to risk- weighted assets was 11.45%, Tier 1 leverage ratio was 10.00%, and the total capital ratio was 14.60%. Key Performance Metrics 3Q23 2Q23 Reported Adjusted Reported Adjusted B al an ce Sh ee t Total Loans Held for Investment ("LHFI") $ 7,568,063 N/A $ 7,622,689 N/A Total Assets 9,733,303 N/A 10,165,163 N/A Total Deposits 8,374,488 N/A 8,490,043 N/A In co m e St at em en t Net Income $ 24,313 $ 22,004 (4) $ 21,760 $ 21,388 (4) Adjusted Pre-Tax, Pre-Provision ("adjusted PTPP") Earnings(4) N/A 30,663 N/A 31,569 Diluted EPS 0.79 0.71 (4) 0.70 0.69 (4) Se le ct ed R at io s NIM - FTE 3.14 % 3.14 % (5) 3.16 % 3.14 % (5) Return on Average Assets (annualized) ("ROAA") 0.96 0.87 (4) 0.86 0.84 (4) Adjusted PTPP ROAA (annualized) N/A 1.21 (4) N/A 1.24 (4) Return on Average Stockholders’ Equity (annualized) ("ROAE") 9.52 8.62 (4) 8.76 8.61 (4) Adjusted PTPP ROAE (annualized) N/A 12.01 (4) N/A 12.70 (4) Book Value per Common Share $ 32.32 N/A $ 32.33 N/A Tangible Book Value per Common Share(4) 26.78 $ 32.37 26.71 $ 31.66 Tangible Common Equity(4) 827,806 1,000,535 824,456 977,335 Tangible Common Equity to Tangible Assets(4) 8.66 % N/A 8.25 % N/A Return on Average Tangible Common Equity ("ROATCE")(4) 11.48 10.39 % 10.62 10.44 % Efficiency Ratio 63.59 62.71 (4) 64.76 61.17 (4) ALCL to Total LHFI 1.26 1.30 (6) 1.24 1.32 (6) DOLLARS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS UNAUDITED 5 PERFORMANCE HIGHLIGHTS AT-A-GLANCE - THIRD QUARTER 2023 3Q23 Key Highlights * Please see slide 30 for all footnote references included above.
ORIGIN BANCORP, INC. _______ TRENDING KEY MEASURES 54,913 92,249 4Q 19 1Q 20 2Q 20 3Q 20 4Q 20 1Q 21 2Q 21 3Q 21 4Q 21 1Q 22 2Q 22 3Q 22 4Q 22 1Q 23 2Q 23 3Q 23 Total Revenue ($) UNAUDITED Diluted EPS ($)Net Income ($) Total LHFI, Adjusted ($)(8) Total Deposits ($) 0.55 0.79 4Q 19 1Q 20 2Q 20 3Q 20 4Q 20 1Q 21 2Q 21 3Q 21 4Q 21 1Q 22 2Q 22 3Q 22 4Q 22 1Q 23 2Q 23 3Q 23 12,827 4Q 19 1Q 20 2Q 20 3Q 20 4Q 20 1Q 21 2Q 21 3Q 21 4Q 21 1Q 22 2Q 22 3Q 22 4Q 22 1Q 23 2Q 23 3Q 23 4,229 8,374 4Q 19 1Q 20 2Q 20 3Q 20 4Q 20 1Q 21 2Q 21 3Q 21 4Q 21 1Q 22 2Q 22 3Q 22 4Q 22 1Q 23 2Q 23 3Q 23 3,869 7,282 4Q 19 1Q 20 2Q 20 3Q 20 4Q 20 1Q 21 2Q 21 3Q 21 4Q 21 1Q 22 2Q 22 3Q 22 4Q 22 1Q 23 2Q 23 3Q 23 DOLLARS IN THOUSANDS DOLLARS IN THOUSANDS 6 Total LHFI ($) DOLLARS IN MILLIONS 4,143 7,568 4Q 19 1Q 20 2Q 20 3Q 20 4Q 20 1Q 21 2Q 21 3Q 21 4Q 21 1Q 22 2Q 22 3Q 22 4Q 22 1Q 23 2Q 23 3Q 23 DOLLARS IN MILLIONSDOLLARS IN MILLIONS * Please see slide 30 for all footnote references included above. CAGR 14.8% CAGR 17.4% CAGR 18.4% CAGR 20.0% 24,313
ORIGIN BANCORP, INC. _______ TRENDING KEY NON-GAAP MEASURES(4) Adjusted Diluted EPS ($) UNAUDITED Adjusted Net Income ($) Adjusted PTPP Earnings ($) DOLLARS IN THOUSANDS Adjusted Efficiency Ratio (%) 62.21 62.71 4Q 19 1Q 20 2Q 20 3Q 20 4Q 20 1Q 21 2Q 21 3Q 21 4Q 21 1Q 22 2Q 22 3Q 22 4Q 22 1Q 23 2Q 23 3Q 23 24.18 26.78 4Q 19 1Q 20 2Q 20 3Q 20 4Q 20 1Q 21 2Q 21 3Q 21 4Q 21 1Q 22 2Q 22 3Q 22 4Q 22 1Q 23 2Q 23 3Q 23 Tangible Book Value per Common Share ($)(7) 7 23.91 32.37 4Q 19 1Q 20 2Q 20 3Q 20 4Q 20 1Q 21 2Q 21 3Q 21 4Q 21 1Q 22 2Q 22 3Q 22 4Q 22 1Q 23 2Q 23 3Q 23 Adjusted Tangible Book Value per Common Share ($) 18,379 4Q 19 1Q 20 2Q 20 3Q 20 4Q 20 1Q 21 2Q 21 3Q 21 4Q 21 1Q 22 2Q 22 3Q 22 4Q 22 1Q 23 2Q 23 3Q 23 DOLLARS IN THOUSANDS 12,827 4Q 19 1Q 20 2Q 20 3Q 20 4Q 20 1Q 21 2Q 21 3Q 21 4Q 21 1Q 22 2Q 22 3Q 22 4Q 22 1Q 23 2Q 23 3Q 23 0.55 0.71 4Q 19 1Q 20 2Q 20 3Q 20 4Q 20 1Q 21 2Q 21 3Q 21 4Q 21 1Q 22 2Q 22 3Q 22 4Q 22 1Q 23 2Q 23 3Q 23 * Please see slide 30 for all footnote references included above. CAGR 15.5% CAGR 14.6% CAGR 7.0% CAGR 2.8% CAGR 8.4% 22,004 30,663
ORIGIN BANCORP, INC. _______ ASSET AND STOCKHOLDERS' EQUITY GROWTH 1997 - 3Q23 DOLLARS IN MILLIONS Total Assets ($) 148 9,733 19 97 19 98 19 99 20 00 20 01 20 02 20 03 20 04 20 05 20 06 20 07 20 08 20 09 20 10 20 11 20 12 20 13 20 14 20 15 20 16 20 17 20 18 20 19 20 20 20 21 20 22 3Q 23 Total Stockholders' Equity ($) 11 999 19 97 19 98 19 99 20 00 20 01 20 02 20 03 20 04 20 05 20 06 20 07 20 08 20 09 20 10 20 11 20 12 20 13 20 14 20 15 20 16 20 17 20 18 20 19 20 20 20 21 20 22 3Q 23 CAGR 17.7% CAGR 19.1% 8 1,785 100 1,297 Origin Bancorp, Inc. Cumulative Return ($) KBW Nasdaq Bank Total Return Index ($) 12 /3 1/ 96 12 /3 1/ 97 12 /3 1/ 98 12 /3 1/ 99 12 /3 1/ 00 12 /3 1/ 01 12 /3 1/ 02 12 /3 1/ 03 12 /3 1/ 04 12 /3 1/ 05 12 /3 1/ 06 12 /3 1/ 07 12 /3 1/ 08 12 /3 1/ 09 12 /3 1/ 10 12 /3 1/ 11 12 /3 1/ 12 12 /3 1/ 13 12 /3 1/ 14 12 /3 1/ 15 12 /3 1/ 16 12 /3 1/ 17 12 /3 1/ 18 12 /3 1/ 19 12 /3 1/ 20 12 /3 1/ 21 12 /3 1/ 22 0 500 1,000 1,500 2,000 2,500 Total Shareholder Return ($)(9) IPO * Please see slide 30 for all footnote references included above. DOLLARS IN MILLIONS UNAUDITED
ORIGIN BANCORP, INC. _______ 9 1,956 2,247 2,620 4,747 5,223 1,127 1,343 1,545 2,747 2,981829 904 1,075 1,631 1,806 369 436 DFW Houston East Texas 2019 2020 2021 2022 3Q23 Deposit Trends by Texas Market ($)(2) Loan Trends by Texas Market ($)(3) TEXAS GROWTH STORY Texas Franchise Highlights DOLLARS IN MILLIONS • 36 locations throughout 10 counties including the 4th and 5th largest MSAs in the United States.(10) • Texas franchise represents 72% of LHFI(3) and 55% of deposits(2) at September 30, 2023. 1,854 2,574 3,132 4,261 4,131 989 1,581 1,925 2,196 2,103 865 993 1,207 1,173 1,167 892 861 DFW Houston East Texas 2019 2020 2021 2022 3Q23 CAGR 29.9% CAGR 23.8% * Please see slide 30 for all footnote references included above. DOLLARS IN MILLIONS UNAUDITED
ORIGIN BANCORP, INC. _______ 10 LOAN GROWTH 3,869 4,094 4,498 7,282 6,805 5,593 1,212 Origin BTH 2019 2020 2021 2022 3Q23 0 2,000 4,000 6,000 8,000 LHFI Key Data DOLLARS IN MILLIONS IDT • Total loans held for investment ("LHFI"), excluding mortgage warehouse lines of credit, were $7.28 billion at September 30, 2023, reflecting an increase of $196.7 million, or 2.8%, compared to June 30, 2023. • Total mortgage warehouse lines of credit were $286.3 million, or 3.8%, of total LHFI at September 30, 2023. LHFI Growth excluding MW LOC ($)(11) CAGR: 18.4% 1,902 1,833 2,032 3,2423,160 2,492 668 Origin BTH 2019 2020 2021 2022 3Q23 0 1,000 2,000 3,000 4,000 C&I, Owner Occupied CRE and C&D Growth ($)(11) CAGR: 15.3% * Please see slide 30 for all footnote references included above. DOLLARS IN MILLIONS UNAUDITED
ORIGIN BANCORP, INC. _______ Real Estate & Construction: 8% Retail Shopping: 7% Office Building: 5% Healthcare: 3% Multi-family under construction: 3% Hotel: 1% Restaurant: 1% Professional Svcs.: 1% Finance & Insurance: 1% Misc.: 1% Commercial & Industrial ("C&I") 27% Owner Occupied Construction/ Land/Land Development ("C&D"): 3% Owner Occupied Commercial Real Estate ("CRE"):12% Mtg. WH LOC: 4% Non- Owner Occupied C&D: 11% Non-Owner Occupied CRE: 20% Residential Real Estate & Consumer 23% Real Estate & Construction: 8% Finance & Insurance: 7% Mtg. WH LOC: 4% Transportation Svcs: 3% Energy: 3% Retail Shopping: 2% Retail Dealers: 2% Healthcare: 2% Commercial Svcs: 2% Restaurants: 2% Consumer Svcs: 1% Professional Svcs: 1% Banks: 1% Entertainment: 1% Wholesale Distribution: 1% Misc: 6% 11 WELL DIVERSIFIED LOAN PORTFOLIO (Dollars in thousands) 3Q23 2Q23 1Q23 4Q22 3Q22 C&I $ 2,058,073 $ 1,977,028 $ 2,091,093 $ 2,051,161 $ 1,967,037 Owner Occupied CRE 932,109 915,861 855,887 843,006 800,981 Owner Occupied C&D 252,168 259,984 252,617 265,838 248,602 Mtg. WH LOC 286,293 537,627 337,529 284,867 460,573 Total Commercial 3,528,643 3,690,500 3,537,126 3,444,872 3,477,193 Non-Owner Occupied CRE 1,503,782 1,512,303 1,529,513 1,461,672 1,373,366 Non-Owner Occupied C&D 824,588 762,255 696,009 679,787 604,709 Residential Real Estate- Single Family 1,338,382 1,284,955 1,231,022 1,173,316 1,104,277 Residential Real Estate- Multi-Family 349,787 348,703 357,469 304,222 294,905 Consumer Loans 22,881 23,973 24,684 26,153 28,231 Total Loans $ 7,568,063 $ 7,622,689 $ 7,375,823 $ 7,090,022 $ 6,882,681 Loan Portfolio Details Non-Owner Occupied CRE and C&D: $2,328 million C&I, Owner Occupied CRE and C&D, MW LOC: $3,529 million C&I, Owner Occupied CRE and C&D, Mtg. WH LOC: 46% Non-Owner Occupied CRE and C&D: 31% Loan Composition at September 30, 2023: $7,568 million * Please see slide 30 for all footnote references included above. UNAUDITED (12)
ORIGIN BANCORP, INC. _______ 1.01 1.05 1.17 1.11 0.85 Classified LHFI / Total LHFI (%) Net Charge-Offs / Average LHFI (annualized) (%) 3Q22 4Q22 1Q23 2Q23 3Q23 0.07 0.01 0.07 0.10 0.14 0.20 0.14 0.23 0.44 0.42 0.16 0.15 0.16 0.26 0.27 Nonperforming LHFI / LHFI (%) Past due LHFI / LHFI (%) 3Q22 4Q22 1Q23 2Q23 3Q23 12 CREDIT QUALITY Asset Quality Trends (%) Allowance for Loan Credit Losses ("ALCL") 83,359 87,161 92,008 94,353 95,177 1.21 1.23 1.25 1.24 1.26 1.29 1.28 1.30 1.32 1.30 ALCL as a percentage of LHFI, adjusted (%) ALCL as a percentage of LHFI (%) ALCL ($) 3Q22 4Q22 1Q23 2Q23 3Q23 • Provision for credit loss expense for 3Q23 was $3.5 million, compared to $4.3 million in 2Q23, and $16.9 million in 3Q22. The provision was down from the linked period due to an improvement in classified and nonperforming loans during the current quarter. • ALCL to nonperforming LHFI is 301.12% at 3Q23, 280.74% at 2Q23, and 594.11% at 3Q22. DOLLARS IN THOUSANDS (6) * Please see slide 30 for all footnote references included above. UNAUDITED
ORIGIN BANCORP, INC. _______ Texas: 74% Louisiana: 7% Mississippi: 14% Out of Market: 6% 13 Medical: 27% Financial: 17% Law Firms: 11% Energy: 10% Other: 20% National Credit Tenant: 15% CRE OFFICE - STRENGTH AND DIVERSIFICATION Tenant Classification $363.5M $363.5M Geographic Diversification DOLLARS IN THOUSANDS September 30, 2023 Avg. Loan Size $ 2,126 Weighted Avg. LTV 60.30 % Past Due Loans / Loans — Classified Loans / Loans — NPL / Loans — NCOs / Avg. Loans (annualized) — ALCL / Loans 0.79 Weighted Average Debt Service Coverage Ratio (“DSC”) 1.40 Key Portfolio Metrics DOLLARS IN MILLIONS DOLLARS IN MILLIONS NON-OWNER OCCUPIED (“NOO”), UNAUDITED DSC Stress Test (%) 1.40 1.63 1.11 1.25 Current DSC Stressed DSC NOO CRE Office Fixed Rate NOO CRE Office (13)
ORIGIN BANCORP, INC. _______ Treasury/Agency: 8% MBS: 46% CMO: 13% Municipal: 24% Corporate/ABS: 9% 1,865 1,675 1,634 1,592 1,527 2.12 2.34 2.38 2.42 2.46 Total Securities ($) Yield (%) 3Q22 4Q22 1Q23 2Q23 3Q23 Investment Securities Average Balance and Yield INVESTMENT SECURITIES DOLLARS IN MILLIONS • AFS Security Sale/FHLB Advance pay down details(15): • BV AFS Sold - $181.9 million • Realized Loss - $7.2 million • Proceeds - $174.7 million • Pay Down FHLB Advances • Estimated Earnback - 1.7 years • Estimated Annual NIM & EPS Benefit - 11 bp & $0.11 • Total securities portfolio weighted average effective duration was 4.49 years as of September 30, 2023, compared to 4.13 years as of June 30, 2023. • Expected cash flows from investments with no rate changes: • Remainder 2023: $46.8 million • 2024: $206.1 million • 2025: $134.6 million 14 (175.2) (159.9) (138.5) (152.9) (172.7) 3Q22 4Q22 1Q23 2Q23 3Q23 Accumulated Other Comprehensive Loss (14) ($) Investment Securities - AFS * Please see slide 30 for all footnote references included above. $1.29B DOLLARS IN MILLIONS UNAUDITED
ORIGIN BANCORP, INC. _______ Total Loans (Dollars in thousands) Repricing and Maturity Term Rate Structure 1 Year or less 1-5 Years 5-15 Years Over 15 Years Total Floating Rate Variable Rate Fixed Rate Commercial real estate $ 760,174 $ 1,272,934 $ 402,783 $ — $ 2,435,891 $ 708,405 $ 10,677 $ 1,716,809 Construction/land/land development 625,250 361,153 88,806 1,547 1,076,756 582,418 45,382 448,956 Residential real estate 248,391 1,005,126 398,165 36,487 1,688,169 228,273 737,800 722,096 Total real estate $ 1,633,815 $ 2,639,213 $ 889,754 $ 38,034 $ 5,200,816 $ 1,519,096 $ 793,859 $ 2,887,861 Commercial and industrial 1,513,575 483,290 61,208 — 2,058,073 1,518,843 2,888 536,342 Mortgage warehouse lines of credit 286,293 — — — 286,293 286,293 — — Consumer 12,012 10,582 287 — 22,881 5,637 134 17,110 Total $ 3,445,695 $ 3,133,085 $ 951,249 $ 38,034 $ 7,568,063 $ 3,329,869 $ 796,881 $ 3,441,313 % of total 46 % 41 % 13 % 1 % 101 % 44 % 11 % 45 % Weighted Average Rate 7.95 % 4.99 % 4.43 % 4.10 % 6.20 % 8.04 % 4.44 % 4.96 % AFS Securities (Dollars in thousands) Maturity & Projected Cash Flow Distribution Total1 Year or less 1 to 3 Years 3 to 5 Years 5 to 10 Years Over 10 Years Projected total cash flow(16) $ 208,682 $ 306,976 $ 339,295 $ 580,977 $ 308,422 $ 1,744,352 % of Total 13 % 17 % 19 % 33 % 18 % 100 % LOANS & SECURITIES- REPRICING AND MATURITY 15* Please see slide 30 for all footnote references included above.
ORIGIN BANCORP, INC. _______ Commercial: 51% Consumer: 31% Public: 10% Brokered: 8% Real Estate Rental & Leasing: 7% Finance & Insurance: 6% Construction: 5% Professional, Scientific, & Technical Svcs: 5% Other Business Deposits 2% or less: 4% Mgmt of Companies & Enterprises: 4% Affiliate: 3% Manufacturing: 2% Healthcare & Social Assistance: 2% Mining: 2% Other Svcs (except Public Admin.): 2% Retail Trade: 1% Wholesale Trade: 1% Misc: 8% 16 DEPOSIT DETAIL (Dollars in thousands) 3Q23 2Q23 1Q23 4Q22 QoQ % Δ Total Deposits $ 8,374,488 $ 8,490,043 $ 8,174,310 $ 7,775,702 (1.4) % FDIC Insured (3,434,530) (3,402,826) (3,425,845) (3,331,724) 0.9 FDIC Insured Reciprocal (781,054) (770,823) (531,051) (245,621) 1.3 FDIC Insured Brokered Time Deposits & CDARS (669,202) (677,909) (289,968) (5,407) (1.3) Total Estimated FDIC Uninsured Deposits 3,489,702 3,638,485 3,927,446 4,192,950 (4.1) Collateralized Public Funds (739,329) (799,351) (839,569) (762,366) (7.5) Uninsured/Uncollateralized Deposits ($) $ 2,750,373 $ 2,839,134 $ 3,087,877 $ 3,430,584 (3.1) Uninsured/Uncollateralized Deposits (%) 32.8 % 33.4 % 37.8 % 44.1 % Deposit Detail Geographic Concentration (2) Commercial Deposit Composition: $4,329 millionDeposit Composition at September 30, 2023: $8,374 million Commercial Public Funds 39% 17%7% 32% 5% Consumer MississippiLouisiana Texas- DFW TX- East TexasTexas- Houston 18% 16% 19% 38% 9% 7% 5% 14% 51% 23% * Please see slide 30 for all footnote references included above. UNAUDITED
ORIGIN BANCORP, INC. _______ 0.51 2.58 3.56 4.04 0.64 1.54 2.49 3.05 3.47 0.41 1.02 1.75 2.26 2.61 Time Deposits Cost of Interest-bearing Deposits Cost of Total Deposits 3Q22 4Q22 1Q23 2Q23 3Q23 17 7,410 7,710 8,017 8,260 8,443 4,157 4,363 4,648 4,741 4,728 2,583 2,593 2,392 2,140 2,088 670 754 977 1,379 1,627 Interest-bearing Demand Noninterest-bearing Time Deposits 3Q22 4Q22 1Q23 2Q23 3Q23 Average Deposits ($) DEPOSIT TRENDS Deposit Cost Trends (QTD Annualized) (%) IDT Total Deposit Beta (%) Full Cycle Total Deposit Betas (%) 44.0 27.029.0 30.0 Peer OBK 2Q2004 - 3Q2006 4Q2015 - 1Q2019 (17) * Please see slide 30 for all footnote references included above. DOLLARS IN MILLIONS -50.00 0.00 10.48 23.25 35.21 42.16 46.72 0.12 0.77 2.18 3.65 4.51 4.99 5.26 Cumulative Deposit Beta Average Quarterly Fed Funds Rate 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 UNAUDITED 1.22
ORIGIN BANCORP, INC. _______ 0.64 1.54 2.49 3.05 3.47 1.02 1.75 2.26 2.61 0.63 Cost of Total Deposits & Borrowings Cost of Interest Bearing Deposits Cost of Total Deposits Cost of Total Deposits & Borrowings excl. PAA 3Q22 4Q22 1Q23 2Q23 3Q23 18 YIELDS AND COSTS Yield on LHFI (%) Cost of Funds (%) 0.41 • LHFI with fixed rate: 45%; LHFI with floating/variable rate: 55% at 3Q23. • $2.05 billion Prime-based and $1.59 billion primarily SOFR-based loans at 3Q23. 4.86 2.52 1.26 6.16 2.01 UNAUDITED 5.94 5.53 6.35 0.62 1.24 4.94 5.63 6.03 6.18 6.35 5.36 6.82 7.69 8.16 8.43 1.92 3.37 4.42 4.92 5.20 Yield on LHFI Yield on LHFI excl. PAA Avg. Prime Rate 30 Day Avg. SOFR 3Q22 4Q22 1Q23 2Q23 3Q23 2.74
ORIGIN BANCORP, INC. _______ 19 DOLLARS IN THOUSANDS, UNAUDITED 74,130 78,523 84,749 77,147 75,291 71,494 78,174 72,435 68,346 67,292 5,614 4,678 3,009 6,415 6,838 1,415 1,897 1,703 3.68 3.81 3.44 3.16 3.14 3.61 3.73 3.36 3.14 3.14 Net Interest Income excl. Mtg. WH LOC, adjusted ($) Mtg. WH LOC Interest Income ($) Net Purchase Accounting Accretion ($) NIM (FTE) (%) NIM (FTE), adjusted (%) 3Q22 4Q22 1Q23 2Q23 3Q23 NET INTEREST INCOME AND NIM TRENDS 3.143.16 0.19 0.14 0.02 0.01 (0.01) (0.03) (0.16) (0.18) 2Q 23 FH LB & O the r Bor ro wing s RE Lo an s Mtg. W H LO C Othe r C&I IB B al. D FB Tim e D ep os its Sav ing s a nd IB Tr an sc . A cc ts 3Q 23 1.00 2.00 3.00 4.00 5.00 NIM-FTE Changes - 3Q23 (%) Full Cycle NIM Betas (%) (19) (5) (2.0) 13.015.0 21.0 Peer OBK 2Q2004 - 3Q2006 4Q2015 - 1Q2019 (17) * Please see slide 30 for all footnote references included above. 530
ORIGIN BANCORP, INC. _______ Insurance Commission & Fee Income Service Charges & Fees Mortgage Banking Revenue Other 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 20 Net Interest Income Noninterest Income 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 Noninterest Income ($)(20) Net Interest Income + Noninterest Income ($) NET REVENUE DISTRIBUTION Components of Other Noninterest Income 92,249 3Q23 2Q23 1Q23 4Q22 3Q22 Limited Partnership Investment (loss) Income $ (425) $ 231 $ 66 $ (230) $ 112 Swap Fee Income 366 331 384 292 25 Gain on Subordinated Debentures — 471 — — — (Loss) Gain on Sale of Securities (7,173) — 144 — 1,664 GNMA MSR impairment(20) — — — — (1,950) Positive Valuation Adjustment on Non- Marketable Equity Securities 10,096 — — — — — — — Other 3,299 2,294 2,427 2,449 2,452 Total $ 6,163 $ 3,327 $ 3,021 $ 2,511 $ 2,303 54,913 18,119 80.3% 80.4% * Please see slide 30 for all footnote references included above. DOLLARS IN THOUSANDS, UNAUDITED 10,818
ORIGIN BANCORP, INC. _______ 21 Efficiency Ratios (%)(4) NONINTEREST EXPENSE ANALYSIS DOLLARS IN THOUSANDS Noninterest Expense Composition ($) Consolidated Efficiency Ratio Adjusted Efficiency Ratio 3Q22 4Q22 1Q23 2Q23 3Q23 Operating Leverage (%) E FF IC IE N C Y R AT IO (% ) N IE / AV E R A G E A S S E TS (% ) 2.12 2.16 2.23 2.42 2.38 2.35 2.32 2.32 56.92 62.53 59.89 60.97 58.32 60.69 64.76 63.59 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 40 60 80 100 1.5 2.0 2.5 3.0 60 .9 7 52 .1 6 58 .3 2 53 .0 6 58 .6 4 60 .6 9 * Please see slide 30 for all footnote references included above. 61 .1 7 63 .5 9 (4) UNAUDITED 62 .7 1 64 .7 6 56,241 57,254 56,760 58,887 58,663 31,834 33,339 33,731 34,533 34,624 5,399 5,863 6,503 6,578 6,7902,689 2,868 2,916 2,837 2,775 1,872 2,554 2,553 2,552 2,264 2,121 2,277 2,303 2,716 2,868 3,614 1,179 8,712 9,174 8,754 9,671 9,342 Salaries and Employee Benefits Occupancy and Equipment, net Data Processing Intangible Asset Amortization Office and Operations Merger Transaction Expense Other 3Q22 4Q22 1Q23 2Q23 3Q23
ORIGIN BANCORP, INC. _______ 9.6 9.7 9.8 9.6 10.0 9.1 9.9 10.2 10.1 10.3 Company Level Origin Bank Level 3Q22 4Q22 1Q23 2Q23 3Q23 10.7 11.1 11.3 11.2 11.610.9 11.5 11.7 11.7 12.0 Company Level Origin Bank Level 3Q22 4Q22 1Q23 2Q23 3Q23 22 CAPITAL 13.8 14.2 14.3 14.1 14.6 12.8 13.4 13.6 13.5 14.0 Company Level Origin Bank Level 3Q22 4Q22 1Q23 2Q23 3Q23 3Q23 Reported versus Capital Ratios incl. AOCI (%) ICap ICap Total Capital to Risk-Weighted Assets (%)(21) Tier 1 Capital to Risk-Weighted Assets (%)(21)Tier 1 Capital to Average Assets (Leverage Ratio) (%)(21)(22) * Please see slide 30 for all footnote references included above. 10.0 11.6 14.6 11.5 8.3 9.7 12.7 9.5 10.3 12.0 14.0 12.0 8.6 10.1 12.0 10.1 Company Level, Reported Company Level, incl. AOCI Bank Level, Reported Bank Level, incl. AOCI Tier 1 Leverage Ratio Tier 1 Capital Ratio Total Capital Ratio Common Equity Tier 1 Capital Ratio (23) (23) UNAUDITED
ORIGIN BANCORP, INC. _______ Calculation of adjusted net income: 3Q23 2Q23 1Q23 4Q22 3Q22 2Q22 1Q22 4Q21 Net interest income after provision for credit losses $ 70,615 $ 70,985 $ 70,950 $ 80,125 $ 61,581 $ 56,052 $ 52,829 $ 56,827 Add: CECL provision for non-PCD loans — — — — 14,890 — — — Adjusted net interest income after provision for credit losses 70,615 70,985 70,950 80,125 76,471 56,052 52,829 56,827 Total noninterest income $ 18,119 $ 15,636 $ 16,384 $ 13,429 $ 13,723 $ 14,216 $ 15,906 $ 16,701 Less: GNMA MSR impairment — — — — (1,950) — — — Less: (loss) gain on sales of securities, net (7,173) — 144 — 1,664 — — 75 Less: positive valuation adjustment on non- marketable equity securities 10,096 — — — — — — 5,213 Less: gain on sub-debt repurchase — 471 — — — — — — Adjusted total noninterest income 15,196 15,165 16,240 13,429 14,009 14,216 15,906 11,413 Total noninterest expense $ 58,663 $ 58,887 $ 56,760 $ 57,254 $ 56,241 $ 44,150 $ 42,774 $ 40,346 Less: merger expense — — — 1,179 3,614 807 571 — Adjusted total noninterest expense 58,663 58,887 56,760 56,075 52,627 43,343 42,203 40,346 Income tax expense $ 5,758 $ 5,974 $ 6,272 $ 6,822 $ 2,820 $ 4,807 $ 5,278 $ 4,860 Add: income tax expense on adjustment items (614) (99) (30) 248 3,946 169 120 (1,110) Adjusted income tax expense 5,144 5,875 6,242 7,070 6,766 4,976 5,398 3,750 Net income $ 24,313 $ 21,760 $ 24,302 $ 29,478 $ 16,243 $ 21,311 $ 20,683 $ 28,322 Adjusted net income $ 22,004 $ 21,388 $ 24,188 $ 30,409 $ 31,087 $ 21,949 $ 21,134 $ 24,144 23 DOLLARS IN THOUSANDS, UNAUDITED RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
ORIGIN BANCORP, INC. _______ Calculation of adjusted net income, continued: 3Q21 2Q21 1Q21 4Q20 3Q20 2Q20 1Q20 4Q19 Net interest income after provision for credit losses $ 56,462 $ 59,901 $ 53,827 $ 45,486 $ 36,984 $ 24,887 $ 24,279 $ 41,718 Total noninterest income $ 15,923 $ 12,438 $ 17,131 $ 15,381 $ 18,051 $ 19,076 $ 12,144 $ 10,818 Less: gain on sales of securities, net — 5 1,668 225 301 — 54 — Less: bank-owned life insurance policy — — — — — — 316 — Adjusted total noninterest income 15,923 12,433 15,463 15,156 17,750 19,076 11,774 10,818 Total noninterest expense $ 39,165 $ 37,832 $ 39,436 $ 38,884 $ 38,734 $ 38,220 $ 36,097 $ 36,534 Less: early termination of LT FHLB advance — — 1,613 — — — — — Adjusted total noninterest expense 39,165 37,832 37,823 38,884 38,734 38,220 36,097 36,534 Income tax expense $ 6,242 $ 6,774 $ 6,009 $ 4,431 $ 3,206 $ 786 $ (427) $ 3,175 Add: income tax expense on adjustment items — (1) (12) (47) (63) — (78) — Adjusted income tax expense 6,242 6,773 5,997 4,384 3,143 786 (505) 3,175 Net income $ 26,978 $ 27,733 $ 25,513 $ 17,552 $ 13,095 $ 4,957 $ 753 $ 12,827 Adjusted net income $ 26,978 $ 27,729 $ 25,470 $ 17,374 $ 12,857 $ 4,957 $ 461 $ 12,827 24 DOLLARS IN THOUSANDS, UNAUDITED RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
ORIGIN BANCORP, INC. _______ Calculation of adjusted PTPP earnings: 3Q23 2Q23 1Q23 4Q22 3Q22 2Q22 1Q22 4Q21 Provision for credit losses $ 3,515 $ 4,306 $ 6,197 $ 4,624 $ 16,942 $ 3,452 $ (327) $ (2,647) Less: CECL provision for non-PCD loans — — — — 14,890 — — — Adjusted provision for credit losses $ 3,515 $ 4,306 $ 6,197 $ 4,624 $ 2,052 $ 3,452 $ (327) $ (2,647) Adjusted net income $ 22,004 $ 21,388 $ 24,188 $ 30,409 $ 31,087 $ 21,949 $ 21,134 $ 24,144 Plus: provision (adjusted) for credit losses 3,515 4,306 6,197 4,624 2,052 3,452 (327) (2,647) Plus: income (adjusted) tax expense 5,144 5,875 6,242 7,070 6,766 4,976 5,398 3,750 Adjusted PTPP earnings $ 30,663 $ 31,569 $ 36,627 $ 42,103 $ 39,905 $ 30,377 $ 26,205 $ 25,247 3Q21 2Q21 1Q21 4Q20 3Q20 2Q20 1Q20 4Q19 Provision for credit losses $ (3,921) $ (5,609) $ 1,412 $ 6,333 $ 13,633 $ 21,403 $ 18,531 $ 2,377 Adjusted net income $ 26,978 $ 27,729 $ 25,470 $ 17,374 $ 12,857 $ 4,957 $ 461 $ 12,827 Plus: provision for credit losses (3,921) (5,609) 1,412 6,333 13,633 21,403 18,531 2,377 Plus: income (adjusted) tax expense 6,242 6,773 5,997 4,384 3,143 786 (505) 3,175 Adjusted PTPP earnings $ 29,299 $ 28,893 $ 32,879 $ 28,091 $ 29,633 $ 27,146 $ 18,487 $ 18,379 25 DOLLARS IN THOUSANDS, UNAUDITED RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
ORIGIN BANCORP, INC. _______ Calculation of adjusted dilutive EPS: 3Q23 2Q23 1Q23 4Q22 3Q22 2Q22 1Q22 4Q21 Numerator: Adjusted net income $ 22,004 $ 21,388 $ 24,188 $ 30,409 $ 31,087 $ 21,949 $ 21,134 $ 24,144 Denominator: Weighted average diluted common shares outstanding 30,943,860 30,872,834 30,882,156 30,867,511 28,481,619 23,788,164 23,770,791 23,609,874 Diluted earnings per share $ 0.79 $ 0.70 $ 0.79 $ 0.95 $ 0.57 $ 0.90 $ 0.87 $ 1.20 Adjusted diluted earnings per share 0.71 0.69 0.78 0.99 1.09 0.92 0.89 1.02 3Q21 2Q21 1Q21 4Q20 3Q20 2Q20 1Q20 4Q19 Numerator: Adjusted net income $ 26,978 $ 27,729 $ 25,470 $ 17,374 $ 12,857 $ 4,957 $ 461 $ 12,827 Denominator: Weighted average diluted common shares outstanding 23,613,010 23,604,566 23,590,430 23,543,917 23,500,596 23,466,326 23,530,212 23,529,862 Diluted earnings per share $ 1.14 $ 1.17 $ 1.08 $ 0.75 $ 0.56 $ 0.21 $ 0.03 $ 0.55 Adjusted diluted earnings per share 1.14 1.17 1.08 0.74 0.55 0.21 0.02 0.55 26 RECONCILIATION OF NON-GAAP FINANCIAL MEASURES DOLLARS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS, UNAUDITED
ORIGIN BANCORP, INC. _______ Calculation of tangible book value per common share and adjusted tangible book value per common share: 3Q23 2Q23 1Q23 4Q22 3Q22 2Q22 1Q22 4Q21 Total common stockholders' equity $ 998,945 $ 997,859 $ 992,587 $ 949,943 $ 907,024 $ 646,373 $ 676,865 $ 730,211 Less: goodwill 128,679 128,679 128,679 128,679 136,793 34,153 34,153 34,368 Less: other intangible assets, net 42,460 44,724 47,277 49,829 52,384 15,900 16,425 16,962 Tangible common equity 827,806 824,456 816,631 771,435 717,847 596,320 626,287 678,881 Less: accumulated other comprehensive (loss) income (172,729) (152,879) (138,481) (159,875) (175,233) (115,979) (65,890) 5,729 Adjusted tangible common equity 1,000,535 977,335 955,112 931,310 893,080 712,299 692,177 673,152 Divided by common shares outstanding at period end 30,906,716 30,866,205 30,780,853 30,746,600 30,661,734 23,807,677 23,748,748 23,746,502 Book value per common share(7) $ 32.32 $ 32.33 $ 32.25 $ 30.90 $ 29.58 $ 27.15 $ 28.50 $ 30.75 Tangible book value per common share(7) 26.78 26.71 26.53 25.09 23.41 25.05 26.37 28.59 Adjusted tangible book value per common share 32.37 31.66 31.03 30.29 29.13 29.92 29.15 28.35 3Q21 2Q21 1Q21 4Q20 3Q20 2Q20 1Q20 4Q19 Total common stockholders' equity $ 705,667 $ 688,235 $ 656,355 $ 647,150 $ 627,637 $ 614,781 $ 606,631 $ 599,362 Less: goodwill 26,741 26,741 26,741 26,741 26,741 26,741 26,741 26,741 Less: other intangible assets, net 3,089 3,283 3,505 3,739 3,976 4,212 4,500 4,799 Tangible common equity 675,837 658,211 626,109 616,670 596,920 583,828 575,390 567,822 Less: accumulated other comprehensive income 11,872 18,914 12,185 25,649 21,998 20,613 15,822 6,333 Adjusted tangible common equity 663,965 639,297 613,924 591,021 574,922 563,215 559,568 561,489 Divided by common shares outstanding at period end 23,496,058 23,502,215 23,488,884 23,506,312 23,506,586 23,501,233 23,475,948 23,480,945 Book value per common share(7) $ 30.03 $ 29.28 $ 27.94 $ 27.53 $ 26.70 $ 26.16 $ 25.84 $ 25.52 Tangible book value per common share(7) 28.76 28.01 26.66 26.23 25.39 24.84 24.51 24.18 Adjusted tangible book value per common share 28.26 27.20 26.14 25.14 24.46 23.97 23.84 23.91 27 RECONCILIATION OF NON-GAAP FINANCIAL MEASURES * Please see slide 30 for all footnote references included above. DOLLARS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS, UNAUDITED
ORIGIN BANCORP, INC. _______ RECONCILIATION OF NON-GAAP FINANCIAL MEASURES DOLLARS IN THOUSANDS, UNAUDITED Calculation of adjusted efficiency ratio: 3Q23 2Q23 1Q23 4Q22 3Q22 2Q22 1Q22 4Q21 Total noninterest expense $ 58,663 $ 58,887 $ 56,760 $ 57,254 $ 56,241 $ 44,150 $ 42,774 $ 40,346 Less: insurance and mortgage noninterest expense 8,579 9,156 8,033 8,031 8,479 8,397 8,626 6,580 Less: merger and acquisition expense — — — 1,179 3,614 807 571 — Adjusted total noninterest expense 50,084 49,731 48,727 48,044 44,148 34,946 33,577 33,766 Net interest income 74,130 75,291 77,147 84,749 78,523 59,504 52,502 54,180 Less: insurance and mortgage net interest income 2,120 1,574 1,493 1,376 1,208 1,082 875 946 Add: total noninterest income 18,119 15,636 16,384 13,429 13,723 14,216 15,906 16,701 Less: insurance and mortgage noninterest income 7,335 7,587 8,792 6,255 4,737 8,047 10,552 5,683 Less: positive valuation adjustment on non- marketable equity securities 10,096 — — — — — — 5,213 Less: (loss) gain on sale of securities, net (7,173) — 144 — 1,664 — — 75 Less: gain on sub-debt repurchase — 471 — — — — — — Adjusted total revenue 79,871 81,295 83,102 90,547 84,637 64,591 56,981 58,964 Efficiency ratio 63.59 % 64.76 % 60.69 % 58.32 % 60.97 % 59.89 % 62.53 % 56.92 % Adjusted efficiency ratio 62.71 61.17 58.64 53.06 52.16 54.10 58.93 57.27 3Q21 2Q21 1Q21 4Q20 3Q20 2Q20 1Q20 4Q19 Total noninterest expense $ 39,165 $ 37,832 $ 39,436 $ 38,884 $ 38,734 $ 38,220 $ 36,097 $ 36,534 Less: insurance and mortgage noninterest expense 6,688 6,964 7,252 7,195 7,746 7,944 6,463 6,432 Less: early termination of LT FHLB advance — — 1,613 — — — — — — — — Adjusted total noninterest expense 32,477 30,868 30,571 31,689 30,988 30,276 29,634 30,102 Net interest income 52,541 54,292 55,239 51,819 50,617 46,290 42,810 44,095 Less: insurance and mortgage net interest income 1,048 979 1,003 1,236 1,125 1,204 872 735 Add: Total noninterest income 15,923 12,438 17,131 15,381 18,051 19,076 12,144 10,818 Less: insurance and mortgage noninterest income 6,179 5,815 8,348 9,326 12,741 13,826 6,456 5,787 Less: gain on sale of securities, net — 5 1,668 225 301 — 54 — Less: payout on life insurance policy — — — — — — — 316 — Adjusted total revenue 61,237 59,931 61,351 56,413 54,501 50,336 47,256 48,391 Efficiency ratio 57.21 % 56.69 % 54.49 % 57.86 % 56.41 % 58.47 % 65.69 % 66.53 % Adjusted efficiency ratio 53.03 51.51 49.83 56.17 56.86 60.15 62.71 62.21 28
ORIGIN BANCORP, INC. _______ Calculation of adjusted ROAA and ROAE: Calculation of adjusted PTPP ROAA & ROAE: 3Q23 2Q23 3Q23 2Q23 Adjusted net income $ 22,004 $ 21,388 Adjusted PTPP earnings $ 30,663 $ 31,569 Divided by number of days in the quarter 92 91 Divided by number of days in the quarter 92 91 Multiplied by the number of days in the year 365 365 Multiplied by the number of days in the year 365 365 Annualized adjusted net income $ 87,298 $ 85,787 Adjusted PTPP earnings, annualized $ 121,652 $ 126,623 Divided by total average assets 10,035,564 10,190,356 Divided by total average assets 10,035,564 10,190,356 ROAA (annualized) 0.96 % 0.86 % Adjusted PTPP ROAA (annualized) 1.21 % 1.24 % Adjusted ROAA (annualized) 0.87 0.84 Divided by total average stockholders' equity $ 1,012,912 $ 996,823 Divided by total average stockholders' equity $ 1,012,912 $ 996,823 Adjusted PTPP ROAE (annualized) 12.01 % 12.70 % ROAE (annualized) 9.52 % 8.76 % Adjusted ROAE (annualized) 8.62 8.61 Calculation of ROATCE and adjusted ROATCE: 3Q23 2Q23 Calculation of tangible common equity to tangible assets: Net income $ 24,313 $ 21,760 3Q23 2Q23 Divided by number of days in the quarter 92 91 Total assets $ 9,733,303 $ 10,165,163 Multiplied by number of days in the year 365 365 Less: goodwill 128,679 128,679 Annualized net income $ 96,459 $ 87,279 Less: other intangible assets, net 42,460 44,724 Tangible assets 9,562,164 9,991,760 Adjusted net income $ 22,004 $ 21,388 Divided by number of days in the quarter 92 91 Total common stockholders' equity $ 998,945 $ 997,859 Multiplied by number of days in the year 365 365 Less: goodwill 128,679 128,679 Annualized adjusted net income $ 87,298 $ 85,787 Less: other intangible assets, net 42,460 44,724 Tangible common equity 827,806 824,456 Total average common stockholders’ equity $ 1,012,912 $ 996,823 Tangible common equity to tangible assets 8.66 % 8.25 % Less: average goodwill 128,679 128,679 Less: average other intangible assets, net 43,901 46,379 Average tangible common equity 840,332 821,765 ROATCE 11.48 % 10.62 % Adjusted ROATCE 10.39 10.44 29 DOLLARS IN THOUSANDS, UNAUDITED RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
ORIGIN BANCORP, INC. _______ 30 PRESENTATION NOTES (1) Does not include loan production offices. Count is as of most practicable date. (2) Does not include non-market based deposits. (3) Excludes mortgage warehouse loans. (4) As used in this presentation, adjusted net income, adjusted PTPP earnings, adjusted diluted EPS, adjusted ROAA, adjusted PTPP ROAA, adjusted ROAE, adjusted PTPP ROAE, tangible book value per common share, adjusted tangible book value per common share, tangible common equity to tangible assets, normalized tangible book value per common share, ROATCE, adjusted ROATCE and adjusted efficiency ratio are either non-GAAP financial measures or use a non-GAAP contributor in the formula. For a reconciliation of these alternative financial measures to their comparable GAAP measures, see slides 23-29 of this presentation. (5) NIM - FTE, adjusted, is calculated by removing the net purchase accounting accretion from the net interest income. (6) The ALCL to total LHFI, adjusted is calculated by excluding the ALCL for warehouse loans from the total LHFI ALCL in the numerator and excluding the warehouse loans from the LHFI in the denominator. Due to their low-risk profile, mortgage warehouse loans require a disproportionately low allocation of the ALCL. (7) An increase in accumulated other comprehensive loss negatively impacted total stockholders' equity, tangible common equity, book value and tangible book value per common share primarily due to the movement of the short end of the yield curve and its impact on our investment portfolio. (8) Total LHFI, adjusted excludes mortgage warehouse loans for all periods presented. (9) Origin Bancorp, Inc. and KBW Nasdaq cumulative total shareholder return assumes $100 Invested on December 31, 1996, and any dividends are reinvested. Data for Origin Bancorp, Inc. cumulative total shareholder return prior to May 9, 2018, is based upon private stock transactions and is not reflective of open market trades. (10) Data obtained from The United States Census Bureau (census.gov). Count is as of most practicable date. (11) Year-to-date periods ended December 31, 2020 and 2021, exclude PPP loans. (12) Does not include loans held for sale. (13) Represents an interest rate sensitivity test for CRE office loans over $2.5 million using interest rate assumptions increased to 8.75% for 2023 maturities, 8.6% for 2024 maturities, 8.1% for 2025 maturities, 6.9% for 2026 maturities and 5.9% for 2027+ maturities. (14) The accumulated other comprehensive loss primarily represents the unrealized loss, net of tax benefit, of available for sale securities and is a component of equity. (15) Estimated metrics of the AFS security sale/FHLB advance paydown are calculated by using our annualized third quarter net income, less any extraordinary items, and adding the estimated annualized tax-effected net interest income using a weighted average tax-effected yield of 3.08% on the securities sold and an expected interest rate of 5.62% on the FHLB advances paid off. (16) Includes projected principal and interest cash flow distributions. (17) Peer represents commercial banks as identified by S&P Global. (18) Yield on LHFI excl. purchase accounting adjustments ("PAA") reflects the exclusion of PAA for all periods shown. (19) Net interest income excl. Mtg. WH LOC, adjusted, excludes PAA net accretion for the 2Q23 and prior periods. (20) Mortgage banking revenue for 3Q22 was adjusted for the $1.9 million impairment on the GNMA MSR portfolio. (21) September 30, 2023, dollars and ratios are estimated. (22) 3Q22 does not include BTH Bank, which elected the Community Bank Leverage Ratio. (23) Capital ratios are calculated by including the accumulated other comprehensive loss in the equity used in the numerator of the respective ratios and including the primarily negative fair value adjustments on the available for sale portfolio in the total risk-weighted assets used in the denominator of the ratio.
Exhibit 99.3
FOR IMMEDIATE RELEASE
October 25, 2023
Origin Bancorp, Inc. Announces Declaration of Quarterly Cash Dividend
RUSTON, LOUISIANA (October 25, 2023) - Origin Bancorp, Inc. (NYSE: OBK) ("Origin"), the holding company for Origin Bank, today announced that on October 25, 2023, its board of directors declared a quarterly cash dividend of $0.15 per share of its common stock. The cash dividend will be paid on November 30, 2023, to stockholders of record as of the close of business on November 15, 2023.
About Origin Bancorp, Inc.
Origin Bancorp, Inc. is a financial holding company headquartered in Ruston, Louisiana. Origin’s wholly owned bank subsidiary, Origin Bank, was founded in 1912 in Choudrant, Louisiana. Deeply rooted in Origin’s history is a culture committed to providing personalized, relationship banking to businesses, municipalities, and personal clients to enrich the lives of the people in the communities it serves. Origin provides a broad range of financial services and currently operates 60 banking centers located in Dallas/Fort Worth, East Texas, Houston, North Louisiana and Mississippi. For more information, visit www.origin.bank.
Forward-Looking Statements
When used in filings by Origin Bancorp, Inc. (the "Company") with the Securities and Exchange Commission (the "SEC"), in the Company's press releases or other public or stockholder communications, and in oral statements made with the approval of an authorized executive officer, the words or phrases "anticipates," "believes," "estimates," "expects," “foresees,” "intends," "plans," "projects," and similar expressions or future or conditional verbs such as "could," "may," “might,” "should," "will," and "would" or variations of such terms" are intended to identify "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are subject to certain risks and uncertainties that could cause actual results to differ materially from historical earnings and those presently anticipated or projected. Factors that might cause such a difference include among other things: the expected payment date of its quarterly cash dividend; changes in economic conditions; other legislative changes generally; changes in policies by regulatory agencies; fluctuations in interest rates; the risks of lending and investing activities, including changes in the level and direction of loan delinquencies and write-offs and changes in estimates of the adequacy of the allowance for loan losses; the Company's ability to access cost-effective funding; fluctuations in real estate values and both residential and commercial real estate market conditions; demand for loans and deposits in the Company's market area; competition; and changes in management’s business strategies and other factors set forth in the Company's filings with the SEC.
The Company does not undertake and specifically declines any obligation - to update or revise any forward-looking statements to reflect events or circumstances that occur after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.
Contact Information
Investor Relations
Chris Reigelman
318-497-3177
chris@origin.bank
Media Contact
Ryan Kilpatrick
318-232-7472
rkilpatrick@origin.bank
v3.23.3
Cover Page
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Oct. 25, 2023 |
| Cover [Abstract] |
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8-K
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| Document Period End Date |
Oct. 25, 2023
|
| Entity Registrant Name |
ORIGIN BANCORP, INC.
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0001516912
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false
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LA
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| Entity File Number |
001-38487
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| Entity Tax Identification Number |
72-1192928
|
| Entity Address, Address Line One |
500 South Service Road East
|
| Entity Address, City or Town |
Ruston
|
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LA
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71270
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318
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255-2222
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Common Stock, par value $5.00 per share
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OBK
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NYSE
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na |
| Period Type: |
duration |
|
| X |
- DefinitionIndicate if registrant meets the emerging growth company criteria. Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 12
-Subsection b-2
| Name: |
dei_EntityEmergingGrowthCompany |
| Namespace Prefix: |
dei_ |
| Data Type: |
xbrli:booleanItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionCommission file number. The field allows up to 17 characters. The prefix may contain 1-3 digits, the sequence number may contain 1-8 digits, the optional suffix may contain 1-4 characters, and the fields are separated with a hyphen.
| Name: |
dei_EntityFileNumber |
| Namespace Prefix: |
dei_ |
| Data Type: |
dei:fileNumberItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionTwo-character EDGAR code representing the state or country of incorporation.
| Name: |
dei_EntityIncorporationStateCountryCode |
| Namespace Prefix: |
dei_ |
| Data Type: |
dei:edgarStateCountryItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionThe exact name of the entity filing the report as specified in its charter, which is required by forms filed with the SEC. Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 12
-Subsection b-2
| Name: |
dei_EntityRegistrantName |
| Namespace Prefix: |
dei_ |
| Data Type: |
xbrli:normalizedStringItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionThe Tax Identification Number (TIN), also known as an Employer Identification Number (EIN), is a unique 9-digit value assigned by the IRS. Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 12
-Subsection b-2
| Name: |
dei_EntityTaxIdentificationNumber |
| Namespace Prefix: |
dei_ |
| Data Type: |
dei:employerIdItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionLocal phone number for entity.
| Name: |
dei_LocalPhoneNumber |
| Namespace Prefix: |
dei_ |
| Data Type: |
xbrli:normalizedStringItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionBoolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act. Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 13e
-Subsection 4c
| Name: |
dei_PreCommencementIssuerTenderOffer |
| Namespace Prefix: |
dei_ |
| Data Type: |
xbrli:booleanItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionBoolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act. Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 14d
-Subsection 2b
| Name: |
dei_PreCommencementTenderOffer |
| Namespace Prefix: |
dei_ |
| Data Type: |
xbrli:booleanItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionTitle of a 12(b) registered security. Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 12
-Subsection b
| Name: |
dei_Security12bTitle |
| Namespace Prefix: |
dei_ |
| Data Type: |
dei:securityTitleItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionName of the Exchange on which a security is registered. Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 12
-Subsection d1-1
| Name: |
dei_SecurityExchangeName |
| Namespace Prefix: |
dei_ |
| Data Type: |
dei:edgarExchangeCodeItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionBoolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as soliciting material pursuant to Rule 14a-12 under the Exchange Act. Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Section 14a
-Number 240
-Subsection 12
| Name: |
dei_SolicitingMaterial |
| Namespace Prefix: |
dei_ |
| Data Type: |
xbrli:booleanItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionTrading symbol of an instrument as listed on an exchange.
| Name: |
dei_TradingSymbol |
| Namespace Prefix: |
dei_ |
| Data Type: |
dei:tradingSymbolItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionBoolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as written communications pursuant to Rule 425 under the Securities Act. Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Securities Act
-Number 230
-Section 425
| Name: |
dei_WrittenCommunications |
| Namespace Prefix: |
dei_ |
| Data Type: |
xbrli:booleanItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
Origin Bancorp (NASDAQ:OBNK)
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Von Apr 2024 bis Mai 2024
Origin Bancorp (NASDAQ:OBNK)
Historical Stock Chart
Von Mai 2023 bis Mai 2024
