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ORIGIN BANCORP, INC.
Free Writing Prospectus
Filed Pursuant to Rule 433
Registration Statement No. 333-224225
Dated April 27, 2018
Origin Bancorp, Inc. (the "Company," "OBNK," "Origin," "we" or "our") has filed a registration statement (including a prospectus, which is preliminary and subject to comple-
tion) with the U.S. Securities and Exchange Commission (the “SEC”) for the offering to which this communication relates. Before you invest, you should read the prospectus in
that registration statement and other documents the Company has filed with the SEC for more complete information about the Company and the offering. You may get these
documents for free by visiting EDGAR on the SEC website at www.sec.gov. Alternatively, the Company, any underwriter or any dealer participating in the offering will arrange to
send you the prospectus if you request it by contacting Stephens Inc., toll-free at (800) 643-9691 or by emailing prospectus@stephens.com or Raymond James & Associates, Inc.,
toll free at (800)-248-8863 or by emailing prospectus@raymondjames.com.
The registration statement (including the prospectus) is also available at: https://www.sec.gov/Archives/edgar/data/1516912/000162828018005170/obnks1a2.htm
This presentation contains forward-looking statements that are based on various facts and derived utilizing numerous important assumptions and are subject to known and
unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or
achievements expressed or implied by such forward-looking statements. Forward-looking statements include the information concerning our future financial performance,
business and growth strategy, projected plans and objectives, as well as projections of macroeconomic and industry trends, which are inherently unreliable due to the multiple
factors that impact economic trends, and any such variations may be material. Words or phrases such as “may,” “should,” “could,” “predict,” “potential,” “believe,” “will likely
result,” “expect,” “continue,” “will,” “anticipate,” “seek,” “estimate,” “intend,” “plan,” “projection,” “would” and “outlook,” or the negative version of those words or other
comparable words are intended to identify forward-looking statements but are not the exclusive means of identifying such statements. These forward-looking statements are
not historical facts, and are based on current expectations, estimates and projections about the Company’s industry, management’s beliefs and certain assumptions made by
management, many of which, by their nature, are inherently uncertain and beyond the Company’s control. Accordingly, you are cautioned that any such forward-looking
statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict. Although the Company believes
that the expectations reflected in such forward-looking statements are reasonable as of the date made, expectations may prove to have been materially different from the results
expressed or implied by such forward-looking statements. Unless required by law, the Company also disclaims any obligation to update any forward-looking statements.
Interested parties should not place undue reliance on any forward-looking statement and should carefully consider the risks and other factors that the Company faces.
The Company is not soliciting an offer to buy securities in any jurisdiction where the offer or sale is not permitted. This presentation includes industry and trade association data,
forecasts and information that we have prepared based, in part, upon data, forecasts and information obtained from independent trade associations, industry publications and
surveys, government agencies and other information publicly available to us, which information may be specific to particular markets or geographic locations. Some data is also
based on our good faith estimates, which are derived from management’s knowledge of the industry and independent sources. Industry publications and surveys and forecasts
generally state that the information contained therein has been obtained from sources believed to be reliable. Statements as to our market position are based on market data
currently available to us. Although we believe these sources are reliable, we have not independently verified the information. While we are not aware of any misstatements
regarding our industry data presented herein, our estimates involve risks and uncertainties and are subject to change based on various factors. Similarly, we believe our internal
research is reliable, even though such research has not been verified by any independent sources.
Neither the SEC nor any state securities commission has approved or disapproved of the securities of the Company or passed upon the accuracy or adequacy of this presenta-
tion. Any representation to the contrary is a criminal offense. Except as otherwise indicated, this presentation speaks as of the date hereof. The delivery of this presentation shall
not, under any circumstances, create any implication that there has been no change in the affairs of the Company after the date hereof.
This presentation contains non-GAAP financial measures, including tangible common equity, as converted, tangible book value per share, as converted, tangible common equity
to tangible assets, and core revenue. The non-GAAP financial measures that we discuss in this presentation should not be considered in isolation or as a substitute for the most
directly comparable or other financial measures calculated in accordance with GAAP. A reconciliation of the non-GAAP financial measures used in this presentation to the most
directly comparable GAAP measures is provided in the Appendix to this presentation.
LEGAL INFORMATION & DISCLAIMERS
2
ORIGIN BANCORP, INC.
NASDAQ/OBNK
3.6 MILLION SHARES
$123.6 MILLION (AT THE MIDPOINT OF THE PRICING RANGE)
69% PRIMARY / 31% SECONDARY
15% (100% PRIMARY)
$33.00 - $35.00 PER SHARE
180 DAYS
REDEEM $48.3 MILLION OF SBLF PREFERRED STOCK
SUPPORT BALANCE SHEET GROWTH
POTENTIAL FUTURE ACQUISITION OPPORTUNITIES
OTHER GENERAL CORPORATE PURPOSES
OFFERING SUMMARY
ISSUER:
EXCHANGE / TICKER:
SHARES OFFERED
BASE OFFERING SIZE:
OFFERING STRUCTURE:
OPTION:
PRICING RANGE:
LOCK-UP:
USE OF PROCEEDS:
JOINT BOOKRUNNERS:
CO-MANAGERS:
DIRECTED SHARE PROGRAM:
EXPECTED PRICING DATE:
3
5%
KEEFE, BRUYETTE, & WOODS, INC.
SANDLER O’NEILL + PARTNERS, L.P.
STEPHENS INC.
RAYMOND JAMES & ASSOCIATES, INC.
5/8/18
COMPANY SNAPSHOT
FINANCIAL HIGHLIGHTS
2017
TOTAL ASSETS
TOTAL LOANS
TOTAL DEPOSITS
TANGIBLE COMMON EQUITY, AS CONVERTED
TANGIBLE COMMON EQUITY / TANGIBLE ASSETS,
19 5
DALLAS - FORT WORTH
Entry: 2008
Loans: $1,182
Deposits: $647
Banking Centers: 8
NORTH LOUISIANA
Founded: 1912
Loans: $1,067
Deposits: $1,772
Banking Centers: 19
HOUSTON
Entry: 2013
Loans: $425
Deposits: $521
Banking Centers: 9
CENTRAL MISSISSIPPI
Entry: 2010
Loans: $632
Deposits: $573
Banking Centers: 5
9
8
$4,154
$3,306
$3,512
$383
9.3%
12.3%
Origin Bank was founded
in 1912
OBNK is headquartered in
Ruston, LA
41 banking centers operating
across Texas, Louisiana &
Mississippi
Strong commercial focus with 38% C&I
and 44% CRE lending mix across our footprint
DOLLARS IN MILLIONS
All financial information and other bank data as of 12/31/17.
Notes: Origin Bank formerly Community Trust Bank (1987-2015) / Bank of Choudrant (1912-1987).
Loan totals for markets include mortgage loans held for sale.
(1) Gross of allowance, includes loans held for sale.
(2) As if 901,644 shares of Series D preferred stock owned by Pine Brook were converted to common stock.
See Appendix for reconciliation of Non-GAAP financial measures to GAAP.
DOLLARS IN MILLIONS
4
TOTAL STOCKHOLDERS’ EQUITY
$455
(1)
(2)
AS CONVERTED
TOTAL RBC RATIO
(2)
PROVEN LEADERSHIP TEAM
DRAKE MILLS
Chairman, President & CEO
Has served as President of Origin Bancorp Inc. since 1998 and as CEO
since 2008. Was elected Chairman of the Board of Directors
in 2012.
LANCE HALL
Chief Operating Officer
Has served in various roles including commercial lending, market management,
credit analyst and relationship manager. Currently serves as President of Louisiana
Market in addition to his role as Chief Operating Officer.
STEVE BROLLY
Chief Financial Officer
Previously served as CFO of Fidelity Southern Corporation
(NASDAQ:LION) and as Senior Vice President and Controller of Sun
Bancorp, Inc. (NASDAQ:SNBC)
Ronnie Myrick – Chief Banking Officer
Warrie Birdwell – Regional President (Dallas)
Jim Crotwell - Chief Credit Officer & Deputy Risk Officer
Grant James – Regional President (Fort Worth)
Larry Little – Regional President (Shreveport - Bossier City)
Preston Moore – Regional President (Houston)
Larry Ratzlaff – State President (Mississippi)
Lonnie Scarborough – Chief Retail Banking Officer
Linda Tuten – Chief People & Diversity Officer
AVERAGE TENURE OF LEADERSHIP TEAM
OTHER KEY TEAM MEMBERS
CARY DAVIS
Chief Risk Officer
Previously served as Executive Vice President and Chief Credit Officer
for Central Bank, a subsidiary of First Commerce Corporation
YEARS OF EXPERIENCE
ORIGIN BANKING
34 34
18 21
<1 19
19 45
12 51
2 14
5 34
8 24
7 45
5 35
10 26
11 11
11 30 5
8 33
EXPERIENCED BOARD OF DIRECTORS
DRAKE MILLS
RONNIE MYRICK
JAMES S. D’AGOSTINO JR.
JOHN M. BUSKE
JAMES E. DAVISON JR.
OLIVER GOLDSTEIN
MICHAEL A. JONES, CPA
DR. GARY LUFFEY
FARRELL MALONE, CPA
JOHN PIETRZAK
GEORGE SNELLINGS, IV
ELIZABETH SOLENDER
STEVEN TAYLOR
BANKING
BANKING
BANKING / INSURANCE
MANUFACTURING
ENERGY
FINANCIAL SERVICES
PROFESSIONAL SERVICES
MEDICAL
PUBLIC ACCOUNTING
FINANCIAL SERVICES
LEGAL
REAL ESTATE
AUTOMOTIVE
34
50+
40+
25
18
22
26
15
3
12
10
9
10
1.05%
0.65%
0.18%
0.27%
3.07%
9.24%
1.05%
0.72%
0.01%
8.31%
0.10%
0.05%
0.32%
BOARD OF DIRECTORS AVERAGE
BOARD OF DIRECTORS TOTAL
BOARD OF DIRECTORS TOTAL (AS CONVERTED)
EMPLOYEE TOTAL (AS CONVERTED)
TOTAL BOARD, EXECUTIVES, AND EMPLOYEES (AS CONVERTED)
21
274
1.93%
25.0%
28.4%
5.7%
34.2%
NAME INDUSTRY YEARS OF BANKING ORBANK BOARD EXPERIENCE OWNERSHIP (%)
(1) Reflects pre-offering beneficial ownership and does not include effect of
sales of stock by selling stockholders.
(2) Represents Pine Brook ownership for Oliver Goldstein and Castle Creek
Capital Partners IV, LP ownership for John Pietrzak. Messrs. Goldstein and
Pietrzak disclaim beneficial ownership of these shares for SEC purposes.
(3) As if 901,644 shares of Series D preferred stock owned by Pine Brook were
converted to common stock.
(4) Represents shares held by employee stock ownership plan and named
executive officers not listed above.
6
(2)
(2)
(3)
(3)
(3)
(4)
(1)
UNIQUE BY DESIGN
DIRECTOR OF CULTURE STRATEGIES
At Origin, we believe our culture is a true differentiator across our footprint. It
defines all that we do and permeates throughout our organization. It allows us to
attract the best bankers in our markets, and it drives our philosophy of relationship
banking. From our mission, vision, and values to our brand promise and standards,
our culture is the foundation of our success.
CULTURE DAY FOR NEW HIRES
CULTURE COUNCIL
PROJECT ENRICH
THE BLUE PRINT
DREAM MANAGER
ORIGIN EXPERIENCE
RETURN ON QUALITY
7
THE CORE
VALUES
O
R
I
G
I
N
Our Foundation Is Trust:
Earn It Every Day
Recognize & Encourage Strong
Work Ethic & Individual Initiative
Innovative, Flexible & Forward
Thinking
Genuine Respect for Yourself &
Others
Individual & Corporate Commitment
to our Communities
Never Compromise our Integrity
SUCCESSFUL ORGANIC
GROWTH HISTORY
2
0
0
3
2
0
0
4
2
0
0
5
2
0
0
6
2
0
0
7
2
0
0
8
2
0
0
9
2
0
1
0
2
0
1
1
2
0
1
2
2
0
1
3
2
0
1
4
2
0
1
5
2
0
1
6
2003 - Drake Mills becomes CEO
of Origin Bank
2005 - Acquired First United Bank
in Farmerville, LA
2008 - Entered Dallas, TX market
and hired team of five bankers
2009 - Acquired First Louisiana
Bancshares in Shreveport, LA
2010 - Entered Madison County, MS
through acquisition of Madison
Financial Corp. and hired a team of
six bankers in Central MS
2012 - Raised $85 million from three
institutional investors
2013 - Entered Houston, TX market
and expanded retail mortgage platform
2015 - Acquired four banking centers
from Whitney Bank in the Houston, TX
market
2016 - Raised $45 million from
institutional investors and friends
and family
TOTAL ASSETS
DOLLARS IN MILLIONS
$381
$425
$586
$629
$869
$1,087
$1,452
$1,886
$2,481
$3,101
$3,224
$3,734
$3,971
$4,071
$4,154
COMPOUND ANNUAL
GROWTH RATE OF 19%
82
0
1
7
OUR STRATEGIC FOCUS
21
STRATEGIC FOCUS KEY ACTION ITEMS PERFORMANCE METRICS
Improve operational efficiency and
increase profitability
Increase scale across franchise and
particularly in Houston
Focused effort to improve margin
and risk-adjusted returns
15+ bps NIM expansion
Efficiency ratio trending toward 60%
ROAA trending toward 1.30%
Continue our disciplined
approach to organic
loan and deposit growth
Grow client base and continue
capturing market share
Successfully recruit experienced
lenders and teams
10% organic loan growth
10% organic core deposit
growth
Opportunistic M&A
Focus on existing and contiguous
markets
Attractive 1st Year EPS
Accretion
Disciplined TBVPS Earn-back
>15% IRR
9
OUR STRATEGIC FOCUS
STRONG LEGACY FRANCHISE IN STABLE MARKETS
MARKET OBSERVATIONS MARKET OBSERVATIONS
Stable economy located in the I-20 corridor providing consistent
growth over the years
Recognized as most cost competitive area in the United States by KPMG
Competitive Alternatives from 2008 to 2016
Has become a technology center, linking major employers with
cyber-innovation initiatives from Louisiana Tech and Barksdale Air Force Base
Eleven colleges and universities located in the region enable sustained
business growth and expansion
Centered around Jackson, Central Mississippi represents the most attractive
environment for business and economic growth in the state
Largest labor force and highest per capita income in Mississippi
State of Mississippi is the largest employer in the area and helps insulate market
through economic cycles
Home to major manufacturing facilities of Nissan and Toyota and is the health-
care epicenter of the state
Barksdale Air Force Base
NOTABLE EMPLOYERS & INSTITUTIONS NOTABLE EMPLOYERS & INSTITUTIONS
Source: S&P Global Market Intelligence
NORTH LOUISIANA CENTRAL MISSISSIPPI
10
EXPANDING PRESENCE IN TOP GROWTH MARKETS
MARKET OBSERVATIONS MARKET OBSERVATIONS
Fourth largest MSA in the U.S. with approximately 7.4 million residents and
expected growth to 11 million by 2040
Ranked first in U.S. in year over year population growth in 2016
Diversified economy and home to 22 Fortune 500 companies
Prominent sectors include telecommunications, healthcare, technology and
transportation
Fifth largest MSA in the U.S. with approximately 7.0 million residents
Expected to grow between one and two million residents per decade through
2040
Sixth largest U.S. metro economy and home to 20 Fortune 500 companies
Compared to the nation’s 20 most populated metro areas, housing costs and
cost of living are 39.6% and 23.1% below the average, respectively
NOTABLE EMPLOYERS & INSTITUTIONS NOTABLE EMPLOYERS & INSTITUTIONS
Source: S&P Global Market Intelligence.
DALLAS - FORT WORTH HOUSTON
11
17% 19%
50%
32%
33%
49%
OUR MARKETS
DIVERSE GEOGRAPHIC FOOTPRINT
Attractive combination of stable,
low cost markets and metropolitan
growth markets
Expansion through organic growth
and selective M&A
TRACK RECORD OF GROWTH
IN NEW MARKETS
Success in growing loans and
deposits organically in diverse,
new markets
Culture and brand are unique,
enabling Origin to attract talented
bankers and banking relationships
across markets
2017 LOANS & DEPOSITS BY STATE
LOAN BALANCES BY EXPANSION MARKET
DOLLARS IN MILLIONS
DEPOSITS LOANS
TX
LA
MS
$1,182
$632
$425
$23
$80
$411
$827 $1,167
$1,223
$1,804
$1,977
$2,113
$2,239
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Dallas / Fort Worth Central Mississippi Houston 12
GROWING CORE DEPOSIT
FRANCHISE
Note: Deposit Composition Data as of 12/31/17. Cost of Deposits are
for the year ended 12/31/17.
Continued success in growing core
deposits, especially noninterest-
bearing deposits, while significantly
growing the balance sheet
Low cost of deposits driven by legacy
North Louisiana franchise
Rank 1st in deposit market share
in Ruston, LA and Monroe, LA MSAs
Expansion markets generating further
growth in noninterest-bearing deposits
Relationship bankers motivated to
grow core deposits
Builds and strengthens client
relationships and provides stable
funding for growth
DEPOSIT COMPOSITION
NONINTEREST-BEARING DEPOSITS
COST OF DEPOSITS: 0.56%
$145
$193
$273
$334
$482
$559
$629
$726
$780
$833
17.9%
16.8%
17.3% 17.5%
18.6%
20.6%
20.4%
21.4%
22.7%
23.7%
15%
17%
19%
21%
23%
25%
$-
$100
$200
$300
$400
$500
$600
$700
$800
$900
N
O
N
IN
T
E
R
E
ST
-B
E
A
R
IN
G
D
E
P
O
SI
T
S
P
E
R
C
E
N
T
Noninterest
Bearing Demand
24%
Interest Bearing
Demand
21%
Money Market
25%
Savings
4%
CDs
18%
Brokered
8% $833
$739
$900
$145
$619
$276
N
O
N
IN
T
E
R
E
S
T-
B
E
A
R
IN
G
D
E
P
O
S
IT
S
D
O
LL
A
R
S
I
N
M
IL
LI
O
N
S
DOLLARS IN MILLIONS
13
DIVERSIFIED COMMERCIAL
LOAN PORTFOLIO
Note: Data as of 12/31/17. Yield on loans held for investment is for the year
ended 12/31/17.
(1) Held for investment
Focus on lending to middle market and
small businesses and their owners and
executives
Commercial loans represent 82% of
portfolio as of 12/31/17
Loan growth potential enhanced by diverse
portfolio
LOAN COMPOSITION
YIELD ON LOANS: 4.38%
Total C&I
38%
Total CRE
44%
C&I
30%
Mortgage
Warehouse
8%Non-Owner
Occupied CRE
21%
Owner
Occupied CRE
13%
C&D
10%
Residential
17%
Other 1%
Increases asset sensitivity of balance sheet
14
Commercial real estate loan concentrations
well below regulatory guidelines
(1)
UNDERWRITING & CREDIT
CULTURE
(1) As of 12/31/17.
(2) As of December 31 for each period.
Excellent track record of strong credit
quality across core commercial lending
portfolio (excluding energy)
Seasoned lenders with strong credit
backgrounds and significant in-market
experience
Centralized underwriting for all loans
Strong underwriting guidelines include
global cash flow analysis and personal
guarantees
Portfolio diversification enhanced by
average loan size of approximately
$295,000
NPLs / LOANS
NCOs/AVERAGE LOANS
0.62% 0.58%
0.61%
0.50%
1.56%
0.12%
0.89%
0.66%
1.12%
2.14%
0.73%
2013 2014 2015 2016 2017
Non-Energy Energy
0.17%
0.06% 0.09%
0.23% 0.09%
0.74% 0.46%
0.31%
(0.12%)
0.21%
0.48%
0.15%
0.71%
0.69%
2013 2014 2015 2016 2017
Non-Energy Energy Other
SINGLE LOAN
FRAUD IN 2014,
PARTIALLY RECOVERED
IN 2016
15
(1)
(2)
(2)
BALANCE SHEET REPOSITIONED
FOR GROWTH & PROFITABILITY
Successful reduction in energy portfolio
Strong rebound in average loan balances
throughout 2017
Net interest margin expanding along with
average balances
Poised for increased growth rates in loans
with removal of headwinds from energy
ENERGY LOANS
AVERAGE LOANS & NIM
$127 $114 $110 $100
$74 $62 $57 $53
$93
$75
$56
$51
$51
$22 $11 $1
$220
$189
$166
$151
$125
$84 $68 $54
1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17
Services / Midstream E&P
3.21%
2.90%
3.00%
3.10%
$2,900
$2,950
$3,000
$3,050
$3,100
$3,150
$3,200
$3,250
$3,300
Average Loans Net Interest Margin
DOLLARS IN MILLIONS
Energy loans represent 1.6% of total loans
as of 12/31/17
16
Notes: Non-energy loans exclude loans held for sale. Net interest margin
excludes the tax equivalent adjustment.
(1) Gross of allowance, includes loans held for sale.
$3,040
$3,142
$3,190
$3,147
$3,120
$3,185
$3,239 $3,268
3.21%
3.33% 3.33%
3.20%
3.24%
3.35%
3.51%
3.50%
3.00%
3.05%
3.10%
3.15%
3.20%
3.25%
3.30%
3.35%
3.40%
3.45%
3.50%
3.55%
$2,900
$2,950
$3,000
$3,050
$3,100
$3,150
$3,200
$3,250
$3,300
1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17
(1)
ASSET SENSITIVE
BALANCE SHEET
(1) Rate sensitive assets defined as assets that are expected to mature / reprice
within 1 year.
(2) As of 12/31/17. Estimated sensitivity based on 1 to 12 months.
Well positioned to benefit from a rising
rate environment
Substantial growth in rate sensitive assets
over the last five years
Pricing moved above floors on the majority
of our loan portfolio in 2017
60.4% of loans are floating rate as of
12/31/17
RATE SENSITIVE ASSETS (1)
ESTIMATED SENSITIVITY -% CHANGE IN NET INTEREST INCOME (2)
33.1%
24.9%
16.7%
8.4%
0.0%
(8.6%)
400 bps300 bps200 bps100 bps 0 bps-100 bps
$1,060 $1,134
$1,210
$1,712
$2,057
2013 2014 2015 2016 2017
17
DOLLARS IN MILLIONS
DIVERSIFIED & GROWING
REVENUE STREAMS
Note: Data as of December 31 for each period.
(1) We calculate core revenue as net interest income plus noninterest
income less losses on non-mortgage loans held for sale and gains on sales
and disposals of other assets. See appendix for reconciliation of Non-GAAP
financial measures to GAAP.
Meaningful noninterest income
supplements spread related revenue
More comprehensive product suite
similar to regional and money center
banks delivered with high quality,
responsive customer service
Operate insurance, mortgage and wealth
management businesses
These products produce diversification
within our revenue stream while creating
stronger, broader client relationships
CORE REVENUE DISTRIBUTION - 2017(1)
CORE REVENUE GROWTH(1)
Noninterest Income = 24%
Net Interest
Income
76%
& Fees
7%
Mortgage
Banking
Revenue
9%
Insurance
Commission
and Fee Income
4%
Other
4%
Service Charges
74.2%
74.5% 73.4% 74.1%
76.1%
25.8%
25.5%
26.6% 25.9%
23.9%
$126
$149
$165 $163
$171
2013 2014 2015 2016 2017
Net Interest Income Fee Income
Mortgage channel is focused on
in-footprint retail origination and
servicing our MSR portfolio
18
DOLLARS IN MILLIONS
ABILITY TO LEVERAGE
INFRASTRUCTURE
Note: Data as of December 31 for each period.
Cost-effective, centralized back office
functions provided through operations
center in North Louisiana
Infrastructure exists to support significant
growth in assets at increasing levels of
profitability
Successful expansions in Dallas - Fort Worth
and Mississippi
NONINTEREST EXPENSE / AVERAGE ASSETS
DEPOSITS & LOANS PER BANKING CENTER - 2017
SIGNIFICANT SCALE
OPPORTUNITY IN
HOUSTON
2.83% 3.01% 2.97% 2.95% 2.95%
0.27% 0.24% 2.83%
3.28%
2.97% 2.95%
3.19%
2013 2014 2015 2016 2017
CORE NONINTEREST EXPENSE DP TERMINATION & SEVERANCE
$81
$115
$58
$148
$126
$47
DALLAS/FORT WORTH
Deposits Loans
DOLLARS IN MILLIONS
Recent investments in systems
and technology, digital banking
and enterprise risk management
Significant opportunity to enhance ROAA
through added scale in Houston
BANKING CENTERS
8
MISSISSIPPI HOUSTONDALLAS / FORT WORTH
BANKING CENTERS
5
BANKING CENTERS
9
19
LITIGATION SETTLEMENT
DOLLARS IN MILLIONS, EXCEPT SHARE AND PER SHARE FIGURESRECENT DEVELOPMENTS
NET INCOME
RETURN ON AVERAGE ASSETS
YIELD ON LOANS
COST OF FUNDS
NET INTEREST MARGIN, FULLY TAX EQUIVALENT
EFFICIENCY RATIO
DILUTED EARNINGS PER SHARE
BOOK VALUE PER SHARE
TANGIBLE BOOK VALUE PER SHARE, AS CONVERTED
EARNINGS & PER SHARE DATA 1Q18 KEY OBSERVATIONSAND DEVELOPMENTS1Q17
20
$13.4
1.30%
4.68
0.74
3.65
67.1
$0.60
20.36
19.11
$7.2
0.72%
4.16
0.57
3.33
68.7
$0.30
19.99
18.73
TOTAL ASSETS
LOANS HELD FOR INVESTMENT
LOANS HELD FOR INVESTMENT (EXCL. MORTGAGE WAREHOUSE)
TOTAL DEPOSITS
BALANCE SHEET 1Q18 4Q17
$4,214.9
3,246.0
3,054.8
3,580.7
$4,154.0
3,241.0
2,986.0
3,512.0
PAST DUE LOANS / TOTAL LOANS HELD FOR INVESTMENT
NPAs / TOTAL ASSETS
NPLs / TOTAL LOANS HELD FOR INVESTMENT
ASSET QUALITY 1Q18 4Q17
0.90%
0.66
0.83
1.27%
0.59
0.73
EARNINGS GROWTH DRIVEN BY:
–Expanding margin due to rising rates and loan
growth
–1Q18 negative provision due to paydowns and
improvement in certain impaired loans
–Improvement in efficiency ratio
–Reduction in Federal tax rate
KEY BALANCE SHEET TRENDS:
–9.4% annualized growth in gross loans (exclud
ing mortgage warehouse)
–Seasonal fluctuations in mortgage warehouse
lending
–7.9% annualized growth rate in total deposits
–Asset quality remains strong
OTHER KEY DEVELOPMENTS:
–Hired a team of four relationship bankers in the
Houston market and a team of three relation
ship bankers in the Shreveport, LA market
–Entered into a definitive agreement to purchase
the assets of a general insurance agency
headquartered in Monroe, LA
Note: The table contains selected preliminary unaudited financial information regarding the performance and financial position as of and for the periods indicated. For the period ended March 31, 2018, the amounts and results
set forth above are what we expect to report; however, these are preliminary estimates and subject to additional procedures, which we expect to complete after the completion of this offering. These additional procedures could
result in material changes to the preliminary estimates during the course of preparation of condensed consolidated financial statements as of and for the three month period ended March 31, 2018.
We calculate efficiency ratio by dividing noninterest expense by the sum of net interest income and noninterest income. The efficiency ratio is not calculated on a fully taxable equivalent basis.
See Appendix for reconciliation of Non-GAAP financial measures to GAAP.
(1)
(2)
(2)
(1)
19 5
9
8
KEY HIGHLIGHTS
EXPERIENCED LEADERSHIP AND STRONG
INSIDER OWNERSHIP
TRACK RECORD OF ORGANIC GROWTH
ATTRACTIVE FOOTPRINT
STRONG CORE DEPOSIT FRANCHISE
DIVERSIFIED REVENUE STREAMS
POISED FOR SIGNIFICANT EARNINGS
GROWTH
PROVEN CREDIT CULTURE ACROSS
CORE LOAN PORTFOLIO
M&A OPPORTUNITY
21
APPENDIX
Junior Subordinated Debentures 9,619$
Stockholders' Equity:
SBLF Preferred 48,260
Series D Preferred 16,998
Common Stock 97,594
Additional Paid-In Capital 146,061
Retained Earnings 145,122
Accumulated Other Comprehensive Income 1,307
Total Stockholders' Equity 455,342
Total Capitalization 464,961$
Total Shares Outstanding, as converted (1) 20,420,396
Book Value Per Common Share 19.99$
STRONG CAPITAL
POSITION
(1) As if 901,644 shares of Series D preferred stock owned by Pine Brook were
converted to common stock.
(2) See appendix for reconciliation of Non-GAAP financial measures to GAAP.
(3) Pro Forma capitalization after changing accounting
of ESOP-owned shares from a contingent liability to stockholders’ equity.
Robust capital levels with opportunity for
deployment through organic growth and
strategic acquisitions
IPO net proceeds partially used to redeem
SBLF preferred stock and will improve CET1
and overall capital ratios
CONSOLIDATED CAPITAL RATIOS - 12/31/17
CAPITALIZATION - 12/31/17
(3)
4.0% 4.5%
8.0%
10.5%
9.4%
12.3%
TCE / TA(1)(2) Tier 1 Leverage CET1 Total RBC
Regulatory Minimum
A-1
9.3%
DOLLARS IN THOUSANDS, EXCEPT SHARE AND PER SHARE FIGURES
(2)
Tangible Book Value Per Common Share, as converted $ 18.74
Junior Subordinated Debentures
Stockholders' Equity:
SBLF Preferred
Series D Pr ferred
Common St ck
Additional Paid-I Capital
Retained Earni gs
Accumulated Other Comprehensive Income
Total Stockholders' Equity
Total Capitalization
Total Shares Outstanding, as converted (1)
Book Value Per Common Share
NON-GAAP RECONCILIATIONS
A-2
CALCULATION OF TANGIBLE COMMON EQUITY, AS CONVERTED:
Total stockholders’ equity
Less: Preferred stock, Series SBLF
Goodwill and other intangible assets, net
Total tangible common stockholders' equity, as converted - non-GAAP
CALCULATION OF TANGIBLE ASSETS:
Total assets
Less: Goodwill and other intangible assets, net
Total tangible assets
Tangible common equity to tangible assets, as converted - non-GAAP
Common shares outstanding at end of period
Add: Convertible preferred stock, Series D
Common shares, as converted
Tangible book value per common share, as converted - non-GAAP
FOR THE YEARS ENDED DECEMBER 31
CALCULATION OF CORE REVENUE - NON-GAAP:
Net interest income
Noninterest income
Adjustments to noninterest income for core revenue:
Gain on sales of securities, net
Loss on non-mortgage loans held for sale, net
Gain (loss) on sales and disposals of other assets, net
Core revenue - non-GAAP
(DOLLARS IN THOUSANDS, EXCEPT SHARE AND PER SHARE FIGURES)
DOLLARS IN THOUSANDS 2017 2016 2015 2014 2013
$130,305 $120,683 $121,277 $111,202 $93,821
29,187 41,868 44,131 38,262 33,167
(12,708) - - - -
$171,164 $162,930 $165,158 $149,215 $126,456
- 136 250 249 532
1,036 (515) - - -
03/31/201703/31/2018
$454,610
48,260
24,712
$381,638
$4,108,090
24,712
4,083,378
9.35%
19,478,518
901,644
20,380,162
$18.73
$462,824
48,260
24,219
$390,345
$4,214,899
24,219
$4,190,680
9.31%
19,525,241
901,644
20,426,885
$19.11
$455,342
48,260
24,336
$382,746
$4,153,995
24,336
$4,129,659
9.27%
19,518,752
901,644
20,420,396
$18.74
12/31/2017
(1)
(1)
(1) includes ESOP-owned shares