RUSTON, La., Jan. 22, 2020 (GLOBE NEWSWIRE) -- Origin Bancorp, Inc. (Nasdaq: OBNK) ("Origin" or the "Company"), the holding company for Origin Bank (the "Bank"), today announced net income of $12.8 million for the quarter ended December 31, 2019. This represents a decrease of $1.8 million from the quarter ended September 30, 2019, and a decrease of $351,000 from the quarter ended December 31, 2018. Diluted earnings per share for the quarter ended December 31, 2019, was $0.55, down $0.07 from the linked quarter and flat compared to the quarter ended December 31, 2018.

Net income for the year ended December 31, 2019, was $53.9 million, representing an increase of $2.3 million compared to the year ended December 31, 2018, reflecting a year-over-year increase in net interest income, offset by higher provision and noninterest expense. Diluted earnings per share for the year ended December 31, 2019, was $2.28, representing an increase of $0.08 from diluted earnings per share of $2.20 for the year ended December 31, 2018.

"We are pleased with what we have accomplished in 2019, and are proud of how our team was able to adapt to a changing rate environment, grow deposits and loans in a meaningful way and manage our company to build long-term value," said Drake Mills, Chairman, President and CEO of Origin Bancorp, Inc. "We remain committed to the successful execution of our strategy by driving deposit and loan growth, leveraging operational efficiencies and delivering shareholder value in 2020."

Financial Highlights

• Diluted earnings per share for the quarter ended December 31, 2019, was $0.55, and $2.28 for the year ended December 31, 2019.
  
  
• Net interest income was $44.1 million for the quarter ended December 31, 2019, compared to $44.6 million for linked quarter and $42.1 million for the quarter ended December 31, 2018. The net interest margin, fully tax equivalent, was 3.58% for the quarter ended December 31, 2019, compared to 3.69% for the linked quarter and 3.82% for the quarter ended December 31, 2018.
  
  
• Tangible book value per common share was $24.18 at December 31, 2019, an 11.0% increase from $21.79 at December 31, 2018.
  
  
• Total loans held for investment were $4.14 billion, a decrease of $45.3 million, or 1.1%, from September 30, 2019, and an increase of $354.1 million, or 9.3%, from December 31, 2018.
  
  
• Total deposits decreased by $55.7 million, or 1.3%, from September 30, 2019, and increased by $445.5 million, or 11.8%, from December 31, 2018. Total deposits without brokered deposits increased $122.1 million, or 3.1%, from September 30, 2019, and increased $625.3 million, or 18.1%, from December 31, 2018.
  
  
• For the seventh consecutive year Origin Bank was named one of the best banks to work for in the U.S. by American Banker and Best Companies Group, which identifies U.S. banks for outstanding employee satisfaction.

Results of Operations for the Three Months Ended December 31, 2019

Net Interest Income and Net Interest Margin

Net interest income for the quarter ended December 31, 2019, was $44.1 million, reflecting a decrease of $527,000, or 1.2%, compared to the linked quarter. The decrease was primarily driven by a decline in yields earned on loans held for investment, and was partially offset by a decrease in rates paid on interest-bearing liabilities and an increase in the overall average balance of loans held for investment. The aggregate 75 basis point decrease in the Federal Reserve target fed funds rate during the second half of 2019 have impacted the yields earned on our commercial and industrial and residential real estate loan portfolios.

Interest-bearing deposit expense decreased to $11.1 million during the current quarter, compared to $11.6 million for the quarter ended September 30, 2019. The $567,000 decrease in interest-bearing deposit expense was primarily driven by falling interest rates and was partially offset by an increase in the average balance of savings and interest-bearing deposit accounts. Average savings and interest-bearing deposit transaction accounts increased by $176.9 million, or 8.5% and $315.9 million, or 16.3%, compared to the linked quarter and quarter ended December 31, 2018, respectively. Average noninterest-bearing deposits increased by $74.0 million, or 6.9%, compared to the linked quarter and by $149.3 million, or 14.9%, compared to December 31, 2018.

The fully tax-equivalent net interest margin ("NIM") was 3.58% for the fourth quarter of 2019, an 11 basis point decrease from the third quarter of 2019 and a 24 basis point decrease from the fourth quarter of 2018. The decline in the NIM was primarily caused by rate partially offset by a change in the mix of earning asset types. The rate paid on total interest-bearing liabilities for the quarter ended December 31, 2019, was 1.46%, representing a decrease of 19 basis points and an increase of seven basis points compared to the linked quarter and the quarter ended December 31, 2018, respectively. The yield earned on interest-earning assets decreased 25 basis points and 19 basis points compared to the linked quarter and the quarter ended December 31, 2018, respectively. The margin compression the Company experienced on a linked quarter basis was primarily caused by declining loan yields driven by interest rate cuts by the Federal Reserve in the second half of 2019 that were more fully reflected in loan yields during the fourth quarter of 2019 than during the third quarter of 2019, causing a linked quarter decline in NIM.

Noninterest Income

Noninterest income for the quarter ended December 31, 2019, was $10.8 million, a decrease of $2.1 million, or 16.0%, from the linked quarter. The decrease from the linked quarter was primarily driven by decreases of $1.2 million and $775,000 in swap fee income and insurance commission and fee income, respectively.

Lower transaction volume during the current quarter drove the decline in swap fee income compared to the linked quarter. The decrease in insurance commission and fee income was caused by the seasonality of policy renewals.

Noninterest Expense

Noninterest expense for the quarter ended December 31, 2019, was $36.5 million, an increase of $1.5 million, or 4.2%, compared to the linked quarter. The increase from the linked quarter was largely driven by increases of $1.1 million and $551,000 in regulatory assessments and salaries and employee benefits, respectively. During the linked quarter the Company received a FDIC assessment credit of approximately $1.0 million from the FDIC insurance fund, without the receipt of a comparable credit in the current quarter. The increase in salaries and employee benefits expense over the linked quarter was largely driven by a $755,000 increase in self-insured medical expense, partially offset by a decrease in incentive compensation expense.

Financial Condition

Loans

Total loans held for investment at December 31, 2019, were $4.14 billion, a decrease of $45.3 million, or 1.1%, compared to $4.19 billion at September 30, 2019, and an increase of $354.1 million, or 9.3%, compared to $3.79 billion at December 31, 2018. The decrease in loans held for investment when compared to September 30, 2019, was primarily reflected in Mortgage Warehouse Lines of Credit and Commercial and Industrial loans, which decreased $30.3 million and $24.1 million, respectively. The decrease in Mortgage Warehouse Lines of Credit is primarily due to the seasonality of these loans.

For the quarter ended December 31, 2019, average loans held for investment were $4.17 billion, an increase of $100.6 million, or 2.5%, from $4.07 billion for the linked quarter.

Deposits

Total deposits at December 31, 2019, were $4.23 billion, a decrease of $55.7 million, or 1.3%, compared to $4.28 billion at September 30, 2019, and an increase of $445.5 million, or 11.8%, compared to $3.78 billion, at December 31, 2018. Brokered deposits contributed a decrease of $177.8 million when compared to the linked quarter, and a decrease of $179.8 million when compared to December 31, 2018. The decreases were partially offset by increases in money market deposits of $126.7 million when compared to the linked quarter and $461.1 million when compared to December 31, 2018. Noninterest-bearing deposits decreased $77.0 million, or 6.7%, compared to the linked quarter and increased $126.7 million, or 13.3%, compared to the quarter ended December 31, 2018.

Average total deposits for the quarter ended December 31, 2019, increased by $225.3 million, or 5.7%, over the linked quarter, led by increases of $212.1 million in average business deposits.

For the quarter ended December 31, 2019, average noninterest-bearing deposits as a percentage of total average deposits was 27.4%, compared to 27.1% for the quarter ended September 30, 2019, and 26.9% for the quarter ended December 31, 2018.

Borrowings

Average borrowings for the quarter ended December 31, 2019, decreased by $133.9 million, or 28.1%, compared to the quarter ended September 30, 2019, and decreased by $16.8 million, or 4.7% over the quarter ended December 31, 2018. The decrease in average borrowings in the fourth quarter of 2019 compared to the linked quarter was due to the calling of the $100.0 million long-term Federal Home Loan Bank advance in the fourth quarter.

Stockholders' Equity

Stockholders' equity was $599.3 million at December 31, 2019, an increase of $10.9 million, or 1.9%, compared to $588.4 million at September 30, 2019, and an increase of $49.5 million, or 9.0%, compared to $549.8 million at December 31, 2018.

Credit Quality

The Company recorded provision expense of $2.4 million for the quarter ended December 31, 2019, compared to provision expense of $4.2 million for the linked quarter and $1.7 million for the quarter ended December 31, 2018. The decrease in provision expense from the linked quarter was primarily driven by a decrease in charge-offs and, to a lesser extent, a decrease in the general reserve due to the decrease in the loan portfolio. During the quarter ended December 31, 2019, the Company had net charge-offs of $2.8 million compared to net charge-offs of $3.0 million for the linked quarter.

The Company's net charge-off ratio for the year ended December 31, 2019, is 0.15%, compared to 0.13% for the year ended December 31, 2018. Total nonperforming loans held for investment were $31.1 million at December 31, 2019, compared to $31.5 million and $31.9 million at September 30, 2019, and December 31, 2018, respectively.

Allowance for loan losses as a percentage of total loans held for investment was 0.91% at December 31, 2019, compared to 0.89% and 0.90% at September 30, 2019, and December 31, 2018, respectively. Allowance for loan losses as a percentage of nonperforming loans held for investment was 120.46% at December 31, 2019, compared to 117.97% and 107.37% at September 30, 2019, and December 31, 2018, respectively.

Total past due loans held for investment, defined as loans 30 days past due or more, as a percentage of loans held for investment, was 0.72% at both December 31, 2019, and September 30, 2019, and 0.90% at December 31, 2018.

Accounting Standards Update No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments

The Company expects to recognize a one-time cumulative effect adjustment to the allowance for loan losses at the beginning of the first quarter of 2020 due to the adoption of Accounting Standards Update ("ASU") No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, increasing the allowance for credit losses by approximately $1.1 million. The Company does not expect its held-to-maturity or available for sale securities to be materially affected by the adoption of this ASU due to the nature of the portfolios. Our adjustment to the allowance for credit losses at the transition date may vary from our estimate due to refinements in the loss estimation models or factors.

Conference Call

Origin will hold a conference call to discuss its fourth quarter 2019 results on Thursday, January 23, 2020, at 8:00 a.m. Central Time (9:00 a.m. Eastern Time). To participate in the live conference call, please dial (844) 695-5516; International: (412) 902-6750 and request to be joined into the Origin Bancorp, Inc. (OBNK) 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://services.choruscall.com/links/obnk200123.html.

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 Bancorp, Inc.

Origin is a financial holding company for Origin Bank, headquartered in Ruston, Louisiana, which provides a broad range of financial services to small and medium-sized businesses, municipalities, high net-worth individuals and retail clients from 43 banking centers, located from Dallas/Fort Worth, Texas across North Louisiana to Central Mississippi, as well as in Houston, Texas. For more information, www.origin.bank.

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 strategy, projected plans and objectives, including any expected purchases of its outstanding common stock, and related transactions and other projections based on macroeconomic and industry trends, including expectations regarding interest rate cuts by the Federal Reserve and the impact of those cuts on Origin's results of operations, 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 preceded by, followed by or that otherwise include the words "assuming," "believes," "expects," "anticipates," "intends," "projects," "estimates," "plans" and similar expressions or future or conditional verbs such as "will," "should," "would," "may" and "could" 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: deterioration of Origin's asset quality; changes in 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; business and economic conditions generally and in the financial services industry, nationally and within Origin's primary market areas; Origin's ability to prudently manage its growth and execute its strategy; changes in management personnel; Origin's ability to maintain important deposit customer relationships; volatility and direction of market interest rates, which may increase funding costs or reduce interest-earning asset yields thus reducing margin; increased competition in the financial services industry, particularly from regional and national institutions; 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, including the effects of declines in housing markets; 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; the extensive federal and state regulation, supervision and examination governing almost every aspect of Origin's operations including changes in regulations affecting financial institutions, including the Dodd-Frank Wall Street Reform and Consumer Protection Act and the rules and regulations being issued in accordance with this statute and potential expenses associated with complying with such regulations; 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; possible changes in trade, monetary and fiscal policies, laws and regulations and other activities of governments, agencies, and similar organizations; and the effects of weather and natural disasters such as floods, droughts, wind, tornadoes and hurricanes as well as effects from geopolitical instability and manmade disasters. 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, projected and estimated numbers are used for illustrative purpose only, are not forecasts and may not reflect actual results.

Contact:
Chris Reigelman, Origin Bancorp, Inc.
318-497-3177 / chris@origin.bank

Origin Bancorp, Inc.
Selected Financial Data
	At and for the three months ended
	December 31,  2019				September 30,  2019				June 30, 2019				March 31, 2019				December 31,  2018
Income statement and share amounts	(Dollars in thousands, except per share amounts, unaudited)
Net interest income	$	44,095			$	44,622			$	42,969			$	42,026			$	42,061
Provision for credit losses	2,377				4,201				1,985				1,005				1,723
Noninterest income	10,818				12,880				11,176				11,604				10,588
Noninterest expense	36,534				35,064				37,095				35,381				35,023
Income before income tax expense	16,002				18,237				15,065				17,244				15,903
Income tax expense	3,175				3,620				2,782				3,089				2,725
Net income	$	12,827			$	14,617			$	12,283			$	14,155			$	13,178
Basic earnings per common share	$	0.55			$	0.62			$	0.52			$	0.60			$	0.56
Diluted earnings per common share	0.55				0.62				0.52				0.60				0.55
Dividends declared per common share	0.0925				0.0925				0.0325				0.0325				0.0325
Weighted average common shares outstanding - basic	23,323,292				23,408,499				23,585,040				23,569,576				23,519,778
Weighted average common shares outstanding - diluted	23,529,862				23,606,956				23,786,646				23,776,349				23,715,919
Balance sheet data
Total loans held for investment	$	4,143,195			$	4,188,497			$	3,984,597			$	3,838,343			$	3,789,105
Total assets	5,324,626				5,396,928				5,119,625				4,872,201				4,821,576
Total deposits	4,228,612				4,284,317				3,855,012				3,898,248				3,783,138
Total stockholders' equity	599,262				588,363				584,293				568,122				549,779
Performance metrics and capital ratios
Yield on loans held for investment	4.95		%		5.23		%		5.29		%		5.28		%		5.17		%
Yield on interest earnings assets	4.56				4.81				4.85				4.86				4.75
Rate on interest bearing deposits	1.44				1.59				1.61				1.48				1.31
Rate on total deposits	1.04				1.16				1.19				1.11				0.96
Net interest margin, fully tax equivalent	3.58				3.69				3.70				3.80				3.82
Return on average stockholders' equity (annualized)	8.51				9.85				8.54				10.25				9.66
Return on average assets (annualized)	0.97				1.12				0.98				1.18				1.10
Efficiency ratio (1)	66.53				60.98				68.51				65.97				66.52
Book value per common share	$	25.52			$	25.06			$	24.58			$	23.92			$	23.17
Common equity tier 1 to risk-weighted assets (2)	11.75		%		11.43		%		11.93		%		12.05		%		11.94		%
Tier 1 capital to risk-weighted assets (2)	11.95				11.63				12.13				12.26				12.16
Total capital to risk-weighted assets (2)	12.77				12.45				12.97				13.10				12.98
Tier 1 leverage ratio (2)	10.91				10.88				11.10				11.23				11.21

____________________________
⁽¹⁾ Calculated by dividing noninterest expense by the sum of net interest income plus noninterest income.
⁽²⁾ December 31, 2019, 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 Financial Data
	Twelve Months Ended December 31,
(Dollars in thousands, except per share amounts)	2019				2018
Income statement and share amounts	(Unaudited)
Net interest income	$	173,712			$	153,452
Provision (benefit) for credit losses	9,568				1,014
Noninterest income	46,478				41,240
Noninterest expense	144,074				131,236
Income before income tax expense	66,548				62,442
Income tax expense	12,666				10,837
Net income	$	53,882			$	51,605
Basic earnings per common share (1)	$	2.30			$	2.21
Diluted earnings per common share(1)	2.28				2.20
Dividends declared per common share	0.25				0.13
Weighted average common shares outstanding - basic	23,470,746				21,995,990
Weighted average common shares outstanding - diluted	23,674,065				22,194,429
Performance metrics
Yield on loans held for investment	5.18		%		4.96		%
Yield on interest earnings assets	4.77				4.53
Rate on interest bearing deposits	1.53				1.10
Rate on total deposits	1.12				0.81
Net interest margin, fully tax equivalent	3.69				3.75
Return on average stockholders' equity	9.27				10.07
Return on average assets	1.06				1.16
Efficiency ratio (2)	65.43				67.41

____________________________
⁽¹⁾ Due to the combined impact of the repurchase of common stock on the quarterly average common shares outstanding calculation compared to the impact of the repurchase of common stock shares on the year-to-date average common outstanding calculation, and the effect of rounding, the sum of the 2019 quarterly earnings per common share will not equal the 2019 year-to-date earnings per common share amount. Additionally, due to the impact of average preferred shares outstanding on the calculation of earnings per share for the 2018 period, the sum of quarterly periods may not agree to the amount disclosed for the 2018 year-to-date period.
⁽²⁾ Calculated by dividing noninterest expense by the sum of net interest income plus noninterest income.

Origin Bancorp, Inc.
Consolidated Balance Sheets
(Dollars in thousands)	December 31,  2019				September 30,  2019				June 30,  2019				March 31,  2019				December 31,  2018
Assets	(Unaudited)				(Unaudited)				(Unaudited)				(Unaudited)
Cash and due from banks	$	62,160			$	79,005			$	75,204			$	66,312			$	71,008
Interest-bearing deposits in banks	229,358				229,757				124,356				44,928				45,670
Total cash and cash equivalents	291,518				308,762				199,560				111,240				116,678
Securities:
Available for sale	501,070				492,461				548,980				563,826				575,644
Held to maturity	28,620				28,759				28,897				19,033				19,169
Securities carried at fair value through income	11,513				11,745				11,615				11,510				11,361
Total securities	541,203				532,965				589,492				594,369				606,174
Non-marketable equity securities held in other financial institutions	39,808				49,205				49,008				42,314				42,149
Loans held for sale	64,837				67,122				58,408				42,265				52,210
Loans	4,143,195				4,188,497				3,984,597				3,838,343				3,789,105
Less: allowance for loan losses	37,520				37,126				36,683				35,578				34,203
Loans, net of allowance for loan losses	4,105,675				4,151,371				3,947,914				3,802,765				3,754,902
Premises and equipment, net	80,457				80,921				80,672				78,684				75,014
Mortgage servicing rights	20,697				19,866				21,529				23,407				25,114
Cash surrender value of bank-owned life insurance	37,961				37,755				33,070				32,888				32,706
Goodwill and other intangible assets, net	31,540				31,842				32,144				32,497				32,861
Accrued interest receivable and other assets	110,930				117,119				107,828				111,772				83,768
Total assets	$	5,324,626			$	5,396,928			$	5,119,625			$	4,872,201			$	4,821,576
Liabilities and Stockholders' Equity
Noninterest-bearing deposits	$	1,077,706			$	1,154,660			$	1,003,499			$	977,919			$	951,015
Interest-bearing deposits	2,360,096				2,309,387				2,011,719				2,101,706				2,027,720
Time deposits	790,810				820,270				839,794				818,623				804,403
Total deposits	4,228,612				4,284,317				3,855,012				3,898,248				3,783,138
FHLB advances and other borrowings	417,190				419,681				601,346				335,053				445,224
Junior subordinated debentures	9,671				9,664				9,657				9,651				9,644
Accrued expenses and other liabilities	69,891				94,903				69,317				61,127				33,791
Total liabilities	4,725,364				4,808,565				4,535,332				4,304,079				4,271,797
Commitments and contingencies	—				—				—				—				—
Stockholders' equity
Common stock	117,405				117,409				118,871				118,730				118,633
Additional paid-in capital	235,623				235,018				243,002				242,579				242,041
Retained earnings	239,901				229,246				216,801				205,289				191,585
Accumulated other comprehensive income (loss)	6,333				6,690				5,619				1,524				(2,480		)
Total stockholders' equity	599,262				588,363				584,293				568,122				549,779
Total liabilities and stockholders' equity	$	5,324,626			$	5,396,928			$	5,119,625			$	4,872,201			$	4,821,576

Origin Bancorp, Inc.
Consolidated Quarterly Statements of Income
	Three months ended
	December 31,  2019				September 30,  2019				June 30, 2019				March 31, 2019				December 31,  2018
Interest and dividend income	(Dollars in thousands, except per share amounts, unaudited)
Interest and fees on loans	$	52,331			$	53,932			$	51,461			$	49,175			$	47,819
Investment securities-taxable	2,640				2,786				3,208				3,341				3,292
Investment securities-nontaxable	772				826				871				858				996
Interest and dividend income on assets held in other financial institutions	976				1,262				1,523				1,120				951
Total interest and dividend income	56,719				58,806				57,063				54,494				53,058
Interest expense
Interest-bearing deposits	11,056				11,623				11,540				10,497				8,980
FHLB advances and other borrowings	1,428				2,420				2,415				1,834				1,878
Junior subordinated debentures	140				141				139				137				139
Total interest expense	12,624				14,184				14,094				12,468				10,997
Net interest income	44,095				44,622				42,969				42,026				42,061
Provision for credit losses	2,377				4,201				1,985				1,005				1,723
Net interest income after provision for credit losses	41,718				40,421				40,984				41,021				40,338
Noninterest income
Service charges and fees	3,488				3,620				3,435				3,316				3,349
Mortgage banking revenue	3,359				3,092				3,252				2,606				2,288
Insurance commission and fee income	2,428				3,203				3,036				3,510				2,481
Gain (loss) on sales of securities, net	—				20				—				—				(8		)
Gain (loss) on sales and disposals of other assets, net	(38		)		(132		)		(166		)		3				(23		)
Limited partnership investment (loss) income	(267		)		279				(418		)		400				745
Swap fee income	151				1,351				172				511				299
Change in fair value of equity investments	—				—				367				—				—
Other fee income	440				414				360				276				592
Other income	1,257				1,033				1,138				982				865
Total noninterest income	10,818				12,880				11,176				11,604				10,588
Noninterest expense
Salaries and employee benefits	22,074				21,523				22,764				22,613				21,333
Occupancy and equipment, net	4,241				4,274				4,200				4,044				3,830
Data processing	1,801				1,763				1,810				1,587				1,839
Electronic banking	936				924				892				689				699
Communications	454				411				647				586				513
Advertising and marketing	991				930				1,089				798				1,351
Professional services	878				956				839				904				1,024
Regulatory assessments	679				(387		)		691				711				666
Loan related expenses	1,400				1,315				790				669				810
Office and operations	1,632				1,712				1,849				1,481				1,516
Intangible asset amortization	302				302				353				364				367
Franchise tax expense	496				683				492				489				309
Other expenses	650				658				679				446				766
Total noninterest expense	36,534				35,064				37,095				35,381				35,023
Income before income tax expense	16,002				18,237				15,065				17,244				15,903
Income tax expense	3,175				3,620				2,782				3,089				2,725
Net income	$	12,827			$	14,617			$	12,283			$	14,155			$	13,178
Basic earnings per common share	$	0.55			$	0.62			$	0.52			$	0.60			$	0.56
Diluted earnings per common share	0.55				0.62				0.52				0.60				0.55

Origin Bancorp, Inc.
Loan Data
	At and for the three months ended
Loans held for investment	December 31,  2019				September 30,  2019				June 30,  2019				March 31,  2019				December 31,  2018
Loans secured by real estate:	(Dollars in thousands, unaudited)
Commercial real estate	$	1,296,847			$	1,305,006			$	1,219,470			$	1,202,269			$	1,228,402
Construction/land/land development	517,688				509,905				524,999				488,167				429,660
Residential real estate	689,555				680,803				651,988				638,064				629,714
Total real estate	2,504,090				2,495,714				2,396,457				2,328,500				2,287,776
Commercial and industrial	1,343,475				1,367,595				1,341,652				1,287,300				1,272,566
Mortgage warehouse lines of credit	274,659				304,917				224,939				202,744				207,871
Consumer	20,971				20,271				21,549				19,799				20,892
Total loans held for investment	4,143,195				4,188,497				3,984,597				3,838,343				3,789,105
Less: Allowance for loan losses	37,520				37,126				36,683				35,578				34,203
Loans held for investment, net	$	4,105,675			$	4,151,371			$	3,947,914			$	3,802,765			$	3,754,902
Nonperforming assets
Nonperforming loans held for investment
Commercial real estate	$	6,994			$	7,460			$	9,423			$	8,622			$	8,281
Construction/land/land development	4,337				860				1,111				922				935
Residential real estate	5,132				5,254				4,978				5,196				6,668
Commercial and industrial	14,520				17,745				14,810				15,309				15,792
Consumer	163				153				156				206				180
Total nonperforming loans held for investment	31,146				31,472				30,478				30,255				31,856
Nonperforming loans held for sale	927				1,462				2,049				1,390				741
Total nonperforming loans	32,073				32,934				32,527				31,645				32,597
Repossessed assets	4,753				4,565				3,554				3,659				3,739
Total nonperforming assets	$	36,826			$	37,499			$	36,081			$	35,304			$	36,336
Classified assets	$	69,870			$	73,516			$	80,124			$	77,619			$	82,914
Past due loans held for investment (1)	29,980				29,965				31,884				37,841				34,085
Allowance for loan losses
Balance at beginning of period	$	37,126			$	36,683			$	35,578			$	34,203			$	35,727
Provision for loan losses	3,167				3,435				1,782				823				1,886
Loans charged off	3,268				5,415				840				608				3,583
Loan recoveries	495				2,423				163				1,160				173
Net charge-offs (recoveries)	2,773				2,992				677				(552		)		3,410
Balance at end of period	$	37,520			$	37,126			$	36,683			$	35,578			$	34,203
Credit quality ratios
Total nonperforming assets to total assets	0.69		%		0.69		%		0.70		%		0.72		%		0.75		%
Total nonperforming loans to total loans	0.76				0.77				0.80				0.82				0.85
Nonperforming loans held for investment to loans held for investment	0.75				0.75				0.76				0.79				0.84
Past due loans held for investment to loans held for investment	0.72				0.72				0.80				0.99				0.90
Allowance for loan losses to nonperforming loans held for investment	120.46				117.97				120.36				117.59				107.37
Allowance for loan losses to total loans held for investment	0.91				0.89				0.92				0.93				0.90
Net charge-offs (recoveries) to total average loans held for investment (annualized)	0.26				0.29				0.07				(0.06		)		0.37

____________________________
⁽¹⁾ Past due loans held for investment are defined as loans 30 days past due or more.

Origin Bancorp, Inc.
Average Balances and Yields/Rates
	Three months ended
	December 31, 2019							September 30, 2019							December 31, 2018
	Average Balance				Yield/Rate			Average Balance				Yield/Rate			Average Balance				Yield/Rate
Assets	(Dollars in thousands, unaudited)
Commercial real estate	$	1,307,023			5.03	%		$	1,259,274			5.22	%		$	1,176,837			5.07	%
Construction/land/land development	526,494				5.20			533,328				5.48			407,120				5.55
Residential real estate	694,436				4.95			676,650				5.07			604,383				4.87
Commercial and industrial	1,356,316				4.88			1,340,684				5.26			1,251,969				5.22
Mortgage warehouse lines of credit	262,392				4.47			236,042				4.92			187,801				5.54
Consumer	20,889				6.68			20,959				6.90			21,809				6.76
Loans held for investment	4,167,550				4.95			4,066,937				5.23			3,649,919				5.17
Loans held for sale	42,873				2.63			33,814				4.15			22,168				4.70
Loans Receivable	4,210,423				4.93			4,100,751				5.22			3,672,087				5.17
Investment securities-taxable	437,626				2.41			448,766				2.48			499,489				2.64
Investment securities-nontaxable	100,705				3.07			103,053				3.21			113,183				3.52
Non-marketable equity securities held in other financial institutions	48,669				2.88			49,025				2.76			40,176				2.64
Interest-bearing balances due from banks	139,508				1.77			152,580				2.39			108,126				2.51
Total interest-earning assets	4,936,931				4.56	%		4,854,175				4.81	%		4,433,061				4.75	%
Noninterest-earning assets(1)	335,048							325,374							308,125
Total assets	$	5,271,979						$	5,179,549						$	4,741,186
Liabilities and Stockholders' Equity
Liabilities
Interest-bearing liabilities
Savings and interest-bearing transaction accounts	$	2,248,863			1.21	%		$	2,071,990			1.36	%		$	1,932,958			1.10	%
Time deposits	803,344				2.08			828,993				2.16			789,816				1.81
Total interest-bearing deposits	3,052,207				1.44			2,900,983				1.59			2,722,774				1.31
FHLB advances and other borrowings	342,000				1.62			475,860				1.96			358,810				1.95
Securities sold under agreements to repurchase	18,198				0.65			25,302				1.09			37,075				1.23
Junior subordinated debentures	9,668				5.67			9,661				5.69			9,641				5.66
Total interest-bearing liabilities	3,422,073				1.46	%		3,411,806				1.65	%		3,128,300				1.39	%
Noninterest-bearing deposits	1,150,381							1,076,344							1,001,033
Other liabilities(1)	101,600							102,895							70,648
Total liabilities	4,674,054							4,591,045							4,199,981
Stockholders' Equity	597,925							588,504							541,205
Total liabilities and stockholders' equity	$	5,271,979						$	5,179,549						$	4,741,186
Net interest spread					3.10	%						3.16	%						3.36	%
Net interest margin					3.54	%						3.65	%						3.76	%
Net interest income margin - (tax- equivalent)(2)					3.58	%						3.69	%						3.82	%

____________________________
⁽¹⁾ Includes Government National Mortgage Association ("GNMA") repurchase average balances of $24.5 million, $23.7 million and $29.2 million for the three months ended December 31, 2019, September 30, 2019, and December 31, 2018, respectively. 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.
⁽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.

Origin Bancorp, Inc.
Non-GAAP Financial Measures
(Dollars in thousands, except per share amounts)	December 31,  2019				September 30,  2019				June 30, 2019				March 31,  2019				December 31,  2018
Calculation of Tangible Common Equity:
Total Common Stockholders' Equity	$	599,262			$	588,363			$	584,293			$	568,122			$	549,779
Less: Goodwill and Other Intangible Assets, Net	31,540				31,842				32,144				32,497				32,861
Tangible Common Equity	$	567,722			$	556,521			$	552,149			$	535,625			$	516,918
Calculation of Tangible Book Value per Common Share:
Common Shares Outstanding at the End of the Period	23,480,945				23,481,781				23,774,238				23,745,985				23,726,559
Tangible Book Value per Common Share	$	24.18			$	23.70			$	23.22			$	22.56			$	21.79

Source: Origin Bancorp, Inc.