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)
January 23, 2019
ORIGIN BANCORP, INC.
(Exact name of Registrant as specified in its charter)
Louisiana | 001-38487 | 72-1192928 | ||
(State or other jurisdiction of incorporation) | (Commission File No.) | (I.R.S. Employer Identification No.) | ||
500 South Service Road East, Ruston, Louisiana | 71270 | |||
(Address of principal executive offices) | (Zip Code) | |||
Registrant’s telephone number, including area code: (318) 255-2222 | ||||
Not Applicable | ||||
(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))
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 ☒ | |
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. ☒ | |
ITEM 2.02 | Results of Operations and Financial Condition |
On January 23, 2019, Origin Bancorp, Inc. (the "Registrant") issued a press release announcing its fourth quarter and full year 2018 results of operations. A copy of the press release is attached hereto as Exhibit 99.1, which is incorporated herein by reference.
On Thursday, January 24, 2019 at 8:00 a.m. Central Time, the Registrant will host an investor conference call and webcast to review their fourth quarter and full year 2018 financial results. The webcast will include presentation materials which consist of information regarding the Registrant's operating and growth strategies and financial performance. The presentation materials will be posted on the Registrant's website on January 23, 2019. 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.
ITEM 8.01 | Other Events |
On January, 23, 2019, the Registrant issued a press release announcing that the Board of Directors of the Registrant declared a quarterly cash dividend of $0.0325 per share, payable on February 28, 2019, to stockholders of record as of the close of business on February 14, 2019. The press release is attached to this report as Exhibit 99.3, which is incorporated herein by reference.
ITEM 5.02 | Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers. |
(b) | Retirement of John M. Buske and resignation of Oliver Goldstein as Directors |
On January 22, 2019, John M. Buske informed the Board of Directors of the Registrant that he has decided not to stand for re-election as a director at the Registrant’s 2019 annual meeting of stockholders. Accordingly, Mr. Buske's retirement from the Board of Directors and as Chairman of its Compensation Committee will be effective when his term expires at the 2019 annual meeting of stockholders. Mr. Buske's retirement did not result from any disagreement with the Registrant or any matter related to the operations, practices or policies of the Registrant. The Registrant will assign another current director to replace Mr. Buske as Chairman of the Compensation Committee of the Board of Directors. Mr. Buske served on the Board of Directors since 1992.
On January 23, 2019, Oliver Goldstein informed the Board of Directors of the Registrant that he has decided to resign from the Board of Directors of the Registrant, effective February 1, 2019. Mr. Goldstein's resignation did not result from any disagreement with the Registrant or any matter related to the operations, practices or policies of the Registrant. Mr. Goldstein served on the Board of Directors since 2012.
ITEM 9.01 | Financial Statements and Exhibits |
(d) | Exhibits. |
Exhibit 99.1 | |
Exhibit 99.2 | |
Exhibit 99.3 | |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
Dated: January 23, 2019 | ORIGIN BANCORP, INC. | |
By: /s/ Stephen H. Brolly | ||
Stephen H. Brolly | ||
Chief Financial Officer | ||
Exhibit 99.1
For Immediate Release
ORIGIN BANCORP, INC. REPORTS EARNINGS FOR FOURTH QUARTER AND 2018 FULL YEAR
RUSTON, Louisiana, January 23, 2019 -- Origin Bancorp, Inc. (Nasdaq: OBNK) ("Origin" or the "Company"), the holding company for Origin Bank (the "Bank"), today announced net income of $13.2 million for the quarter ended December 31, 2018. This represents an increase of $860,000 from the quarter ended September 30, 2018, and an increase of $7.4 million from the quarter ended December 31, 2017. Diluted earnings per share for the quarter ended December 31, 2018, was $0.55, up $0.03 from the linked quarter and an increase of $0.32 from the quarter ended December 31, 2017.
Net income for the year ended December 31, 2018, was $51.6 million, representing an increase of $36.9 million, compared to the year ended December 31, 2017. Diluted earnings per share for the year ended December 31, 2018, was $2.20, representing an increase of $1.70 from diluted earnings per share of $0.50 for the year ended December 31, 2017.
"We are pleased to report a strong finish for 2018 with solid fourth quarter results,” said Drake Mills, Chairman, President and CEO of Origin Bancorp, Inc. “We remain committed to developing our relationships with our stakeholders as we continue to grow market share and strengthen our brand value. We are also committed to leveraging efficiencies to support continued growth and maximize shareholder value. Our organization is well positioned to take advantage of market opportunities and we believe our recent efforts position us for success in 2019."
Fourth Quarter 2018 Highlights
• | Net interest income of $42.1 million reached a historical quarterly high, increasing by $2.6 million, or 6.5%, over the linked quarter and by $7.8 million, or 22.9%, over the quarter ended December 31, 2017. |
• | Net interest margin for the quarter ended December 31, 2018, was at 3.76% (3.82% fully tax equivalent), an increase of six basis points from the linked quarter and an increase of 23 basis points over the quarter ended December 31, 2017. |
• | Total loans held for investment were $3.79 billion, an increase of $188.0 million, or 5.2%, from September 30, 2018, and an increase of $548.1 million, or 16.9%, from December 31, 2017. The yield earned on total loans held for investment during the quarter ended December 31, 2018, was 5.17%, compared to 5.00% for the linked quarter and 4.53% for the quarter ended December 31, 2017. |
• | Total deposits increased by $56.0 million, or 1.5%, from September 30, 2018, and increased by $271.1 million, or 7.7%, from December 31, 2017. The average rate paid on our interest-bearing deposits was 1.31% compared to 1.16% for the linked quarter and 0.83% for the quarter ended December 31, 2017. |
• | The Company's efficiency ratio improved to 66.52% for the quarter ended December 31, 2018, compared to 69.06% for the quarter ended September 30, 2018, and 74.00% for the quarter ended December 31, 2017. |
Full Year 2018 Highlights
• | Net income and diluted earnings per share for the year ended December 31, 2018, increased by $36.9 million and $1.70, respectively, compared to the year ended December 31, 2017. Net interest margin of 3.69% (3.75% fully tax equivalent) achieved a near record high for the year ended December 31, 2018, reflecting an increase of 27 basis points from the year ended December 31, 2017. |
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• | Net revenue (consisting of net interest income plus noninterest income) for the year ended December 31, 2018, was $194.7 million, an increase of $35.2 million, or 22.1%, from $159.5 million for the year ended December 31, 2017. |
• | Total loans held for investment increased by $548.1 million, or 16.9%, to $3.79 billion from $3.24 billion at December 31, 2017. The yield earned on total loans held for investment for the year ended December 31, 2018, was 4.96%, compared to 4.38% for the year ended December 31, 2017. |
• | In connection with the successful completion of the Initial Public Offering of the Company's common stock, the Company received net proceeds, before expenses, of approximately $96.3 million and issued 3,045,426 shares. A portion of the net proceeds was used to redeem all 48,260 shares of the Company's Senior Non-Cumulative Perpetual Preferred Stock, Series SBLF, at an aggregate redemption price of $49.1 million. |
• | To complement its organic growth model, a lift-out strategy was executed in the Company's Houston market and lending teams within its Dallas and Shreveport markets were augmented with seasoned lending professionals. |
• | Completed acquisition of Reeves, Coon & Funderburg ("RCF") insurance agency, solidifying the Company's presence as one of the larger independent insurance agencies in North Louisiana. |
• | For the sixth 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, 2018
Net Interest Income and Net Interest Margin
Net interest income for the quarter ended December 31, 2018, was $42.1 million, a $2.6 million increase over the linked quarter, primarily due to a $3.9 million increase in interest income earned on loans, reflecting increases in both average balances and rates, which was partially offset by an increase in cost of borrowings. Average loan balances increased during the quarter ended December 31, 2018, compared to the third quarter of 2018, in all categories except mortgage warehouse loans, primarily as a result of the Company's relationship-driven organic growth and recent investment within its growth markets. Interest income on commercial and industrial and commercial real estate loans accounted for $3.5 million, or 89.7%, of the increase in interest income earned on loans during the linked quarter.
Net interest income increased $7.8 million, or 22.9%, compared to the quarter ended December 31, 2017, primarily due to a $10.9 million increase in interest income earned on loans. Average loan balances, except for mortgage warehouse loans, increased during the fourth quarter of 2018 compared to the same quarter in 2017. Interest income on commercial and industrial and commercial real estate loans increased by $8.2 million compared to the quarter ended December 31, 2017. Also contributing to the increase in net interest income was a $1.5 million increase in income earned on investment securities. The increase in net interest income was partially offset by higher costs of funding, which was also primarily driven by increases in market interest rates.
The rate paid on total interest-bearing liabilities for the quarter ended December 31, 2018, was 1.39%, representing an increase of 13 basis points and 49 basis points compared to the linked quarter and the quarter ended December 31, 2017, respectively. Additionally, average balances of total interest-bearing liabilities increased by $175.1 million and $393.7 million compared to the linked quarter and the quarter ended December 31, 2017, respectively. The primary drivers of the increase in the average balance of interest-bearing liabilities were borrowings and interest-bearing deposits which increased by $154.2 million and $18.1 million, respectively, compared to the linked quarter and $282.8 million and $104.7 million, respectively, compared to the quarter ended December 31, 2017. The average rate paid on interest-bearing deposits was 1.31% for the quarter ended December 31, 2018, representing an increase of 15 basis points compared to the linked quarter and an increase of 48 basis points compared to the quarter ended December 31, 2017. The increase in average balances in borrowings in the current period compared to the linked quarter and the quarter ended 2017 was largely due to a $250.0 million FHLB advance obtained in the third quarter of 2018.
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Noninterest Income
Noninterest income for the quarter ended December 31, 2018, was $10.6 million, an increase of $351,000, or 3.4%, from the linked quarter. The increase in noninterest income over the linked quarter was primarily driven by an increase of $990,000 in other income as well as an increase in other fee income and a decrease in (loss) gain on sale and disposals of other assets, net of $228,000 and $184,000, respectively. The increase in other income was driven by an increase of $1.3 million in our limited partnership investment income, and was partially offset by a decrease of $219,000 in swap fee income. The increase in noninterest income was partially offset by decreases in insurance commission and fee income and mortgage banking revenue of $825,000 and $333,000, respectively. The decrease in insurance commission and fee income was largely due to a decrease in agency billed commissions caused by the timing and seasonality of policy renewals.
Noninterest income for the quarter ended December 31, 2018, increased by $1.9 million, or 21.5%, compared to the quarter ended December 31, 2017. The overall increase was driven by increases in insurance commission and fee income and other income of $1.1 million and $831,000, respectively. The increase in insurance commission and fee income was primarily driven by the RCF acquisition in July 2018, which significantly expanded the Company's insurance presence in the North Louisiana market. The increase in other income was driven largely by an increase in the Company's limited partnership income of $444,000. Partially offsetting the increase in total noninterest income from the quarter ended December 31, 2017, was a decrease in mortgage banking revenue of $818,000 primarily due to a decline in the volume of mortgage loans sold.
Noninterest Expense
Noninterest expense for the quarter ended December 31, 2018, was $35.0 million, an increase of $679,000, or 2.0%, compared to the linked quarter. The increase was largely driven by increases in data processing expenses of $316,000, salaries and employee benefit expenses of $279,000 and regulatory assessments of $255,000. The increase in data processing expenses was largely driven by the implementation of a new loan origination platform during the fourth quarter of 2018. Regulatory assessments increased in the current quarter due partially to the increase in assessable assets during the period. The increase in total noninterest expense was partially offset by a $339,000 decrease in occupancy and equipment expenses.
Noninterest expense for the quarter ended December 31, 2018, increased by $3.3 million, or 10.2%, from the quarter ended December 31, 2017, driven primarily by increases of $2.9 million in salaries and employee benefits and $414,000 in data processing expenses. The increase in salaries and employee benefit expenses was largely driven by the addition of the Houston lift-out team, Dallas and Shreveport lending professionals and the RCF acquisition in July 2018. The increase in data processing expenses in the current quarter compared to the quarter ended December 31, 2017, was largely due to the implementation of a new loan origination platform in 2018. The total increase in noninterest expense was partially offset by a $649,000 decrease in loan related expenses, largely due to significant expenses incurred during 2017 as part of the Company's strategic reduction of its energy loan portfolio, which expenses were not incurred again in 2018.
Financial Condition
Loans
Loans held for investment at December 31, 2018, were $3.79 billion, an increase of $188.0 million, or 5.2%, compared to $3.60 billion at September 30, 2018, and an increase of $548.1 million, or 16.9%, compared to $3.24 billion at December 31, 2017.
For the quarter ended December 31, 2018, average loans held for investment were $3.65 billion, an increase of $190.9 million, or 5.5%, from $3.46 billion for the quarter ended September 30, 2018. This increase was driven by the execution of our recent lift-out strategy as well as continued efforts to pursue quality lending opportunities and included increases of $131.5 million and $97.9 million in average commercial and industrial loans and real estate loans, respectively. Average mortgage warehouse loans decreased $40.2 million, or 17.6%, to $187.8 million at December 31, 2018, from September 30, 2018, primarily due to the seasonality of these loans.
Compared to the quarter ended December 31, 2017, average loans held for investment increased by $449.2 million, or 14.0%. This increase included average growth of $249.6 million and $232.7 million within real estate and commercial and industrial loans, respectively. The overall growth was partially offset by an average balance decrease of $33.9 million in mortgage warehouse loans.
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Deposits
Total deposits at December 31, 2018, were $3.78 billion, an increase of $56.0 million, or 1.5%, compared to $3.73 billion at September 30, 2018, and an increase of $271.1 million, or 7.7%, compared to $3.51 billion, at December 31, 2017.
Average deposits for the quarter ended December 31, 2018, increased by $34.8 million, or 0.9%, over the linked quarter, driven by increases of $34.9 million and $32.2 million in average consumer time and average brokered deposits, respectively. The increases were partially offset by a $51.5 million decline in average consumer interest-bearing savings and demand deposits. Overall, average interest-bearing deposits increased by $18.1 million, or 0.7%, and average noninterest-bearing deposits increased by $16.7 million, or 1.7% over the linked quarter.
Average deposits for the quarter ended December 31, 2018, increased by $222.1 million, or 6.3%, over the quarter ended December 31, 2017. Increases of $111.7 million, $73.8 million and $70.6 million in average noninterest-bearing commercial, consumer time and commercial time deposits, respectively, were offset by a $78.3 million decrease in commercial money market deposits when comparing the year over year quarterly periods.
Average noninterest-bearing deposits represented 26.9% of total average deposits for the quarter ended December 31, 2018, compared to 26.7% of total average deposits for the quarter ended September 30, 2018, and 25.2% of total average deposits for the quarter ended December 31, 2017.
Borrowings
Average borrowings for the quarter ended December 31, 2018, increased by $154.2 million, or 75.4%, over the quarter ended September 30, 2018, and $282.8 million over the quarter ended December 31, 2017. The increase in the average borrowings in the fourth quarter of 2018 compared to the linked quarter and same quarter of 2017 was largely due to a $250.0 million FHLB advance obtained in the third quarter of 2018 which has been re-deployed into higher yielding interest-earning assets, such as higher yielding loans, investment securities and interest-bearing cash accounts, and replaced higher rate FHLB advances.
Stockholders' Equity
Stockholders' equity was $549.8 million at December 31, 2018, compared to $531.9 million and $455.3 million at September 30, 2018, and December 31, 2017, respectively. Net income of $13.2 million and other comprehensive income of $3.7 million for the three months ended December 31, 2018, largely resulting from a decrease in unrealized loss on securities available for sale, was the primary driver of the increase in stockholders' equity compared to September 30, 2018.
The $94.5 million increase in stockholders' equity for the quarter ended December 31, 2018, when compared to the same quarter in 2017, was largely due to net income of $51.6 million, offset by an other comprehensive loss of $4.1 million, for the year ended December 31, 2018, and to the completion of the Company's Initial Public Offering in May 2018. In connection with the offering, the Company issued 3,045,426 shares and received net proceeds, before expenses, totaling $96.3 million, a portion of which was used to redeem all outstanding shares of its Senior Non-Cumulative Perpetual Preferred Stock, Series SBLF at an aggregate redemption price of $49.1 million. Also, during the quarter ended June 30, 2018, all of the 901,644 shares of the Company's outstanding Series D preferred stock were converted into shares of its common stock, on a one-for-one basis. As a result, no shares of Series D preferred stock were outstanding at December 31, 2018.
Credit Quality
The Company recorded provision expense of $1.7 million for the quarter ended December 31, 2018, compared to provision expense of $504,000 and $242,000 for the linked quarter and the quarter ended December 31, 2017, respectively. The increase in provision expense from the linked quarter and the quarter ended December 31, 2017, was primarily due to recent loan growth.
At December 31, 2018, nonperforming loans were $32.6 million, representing an increase of $4.7 million, or 16.6%, from the linked quarter. Nonperforming loans increased by $8.8 million, or 37.0%, from $23.8 million at December 31, 2017, primarily due to downgrades associated with three commercial lending relationships.
Allowance for loan losses as a percentage of total loans held for investment was 0.90% at December 31, 2018, compared to 0.99% and 1.14% at September 30, 2018, and December 31, 2017, respectively. Allowance for loan losses as a percentage of nonperforming loans held for investment was 107.37% at December 31, 2018, compared to 134.54% and 155.80% at September 30, 2018, and December 31, 2017, respectively.
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Non-GAAP Financial Measures
Origin reports its results in accordance with United States generally accepted accounting principles ("GAAP"). However, management believes that certain supplemental non-GAAP financial measures used in managing its business may provide meaningful information to investors about underlying trends in its business and management uses these non-GAAP measures to evaluate the Company’s operating performance and believes that these non-GAAP measures provide information that is important to investors and that is useful in understanding Origin's results of operations. 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. Specifically, the Company reviews and reports tangible book value per common share. For a reconciliation of this non-GAAP measure to its most commonly used GAAP measure, see page 13 of this press release.
Conference Call
Origin will hold a conference call to discuss its fourth quarter and full year 2018 results on Thursday, January 24, 2019, at 8:00 a.m. Central (9:00 a.m. Eastern). To participate in the live conference call, please dial (877) 270-2148; International: (412) 902-6510 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/obnk190124.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 41 banking centers located from Dallas/Fort Worth, Texas across North Louisiana to Central Mississippi, as well as in Houston, Texas. For more information, visit 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, and related transactions, integration of acquired businesses, ability to recognize anticipated operational efficiencies, and other projections based on macroeconomic and industry trends, which are all subject to change and may be inherently unreliable due to the multiple factors that impact economic 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 "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, including any loans acquired in acquisition transactions; 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 local market area; 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
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continued access to the debt and equity capital markets; 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 including terrorist attack. For discussion of these and other risks that may cause actual results to differ from expectations, please refer to "Cautionary Note Regarding Forward-Looking Statements" in Origin’s most recent Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission ("SEC") on November 7, 2018, and "Risk Factors", in Origin’s prospectus filed with the SEC on May 9, 2018, pursuant to Section 424(b) of the Securities Act of 1933, as amended, and any updates to those risk factors set forth in Origin’s subsequent Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q or 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
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Origin Bancorp, Inc.
Selected Financial Data
At and for the three months ended | |||||||||||||||||||
December 31, 2018 | September 30, 2018 | June 30, 2018 | March 31, 2018 | December 31, 2017 | |||||||||||||||
Income statement and share amounts | (Dollars in thousands, except per share amounts, unaudited) | ||||||||||||||||||
Net interest income | $ | 42,061 | $ | 39,497 | $ | 37,170 | $ | 34,724 | $ | 34,218 | |||||||||
Provision (benefit) for credit losses | 1,723 | 504 | 311 | (1,524 | ) | 242 | |||||||||||||
Noninterest income | 10,588 | 10,237 | 10,615 | 9,800 | 8,715 | ||||||||||||||
Noninterest expense | 35,023 | 34,344 | 32,012 | 29,857 | 31,771 | ||||||||||||||
Income before income tax expense | 15,903 | 14,886 | 15,462 | 16,191 | 10,920 | ||||||||||||||
Income tax expense | 2,725 | 2,568 | 2,760 | 2,784 | 5,148 | ||||||||||||||
Net income | $ | 13,178 | $ | 12,318 | $ | 12,702 | $ | 13,407 | $ | 5,772 | |||||||||
Basic earnings per common share | $ | 0.56 | $ | 0.52 | $ | 0.54 | $ | 0.60 | $ | 0.23 | |||||||||
Diluted earnings per common share | 0.55 | 0.52 | 0.53 | 0.60 | 0.23 | ||||||||||||||
Dividends declared per common share | 0.0325 | 0.0325 | 0.0325 | 0.0325 | 0.0325 | ||||||||||||||
Weighted average common shares outstanding - basic | 23,519,778 | 23,493,065 | 22,107,489 | 19,459,278 | 19,437,663 | ||||||||||||||
Weighted average common shares outstanding - diluted | 23,715,919 | 23,716,779 | 22,382,003 | 19,675,473 | 19,653,797 | ||||||||||||||
Balance sheet data | |||||||||||||||||||
Total loans held for investment | $ | 3,789,105 | $ | 3,601,081 | $ | 3,372,096 | $ | 3,245,992 | $ | 3,241,031 | |||||||||
Total assets | 4,821,576 | 4,667,564 | 4,371,792 | 4,214,899 | 4,153,995 | ||||||||||||||
Total deposits | 3,783,138 | 3,727,158 | 3,672,097 | 3,580,738 | 3,512,014 | ||||||||||||||
Total stockholders' equity | 549,779 | 531,919 | 519,356 | 462,824 | 455,342 | ||||||||||||||
Performance metrics and capital ratios | |||||||||||||||||||
Yield on loans held for investment | 5.17 | % | 5.00 | % | 4.89 | % | 4.73 | % | 4.53 | % | |||||||||
Yield on interest earnings assets | 4.75 | 4.58 | 4.43 | 4.31 | 4.16 | ||||||||||||||
Rate on interest bearing deposits | 1.31 | 1.16 | 1.01 | 0.90 | 0.83 | ||||||||||||||
Rate on total deposits | 0.96 | 0.85 | 0.75 | 0.68 | 0.62 | ||||||||||||||
Net interest margin, fully tax equivalent | 3.82 | 3.76 | 3.74 | 3.68 | 3.62 | ||||||||||||||
Return on average stockholders' equity (annualized) | 9.66 | 9.15 | 9.94 | 11.82 | 5.00 | ||||||||||||||
Return on average assets (annualized) | 1.10 | 1.08 | 1.17 | 1.30 | 0.55 | ||||||||||||||
Efficiency ratio (1) | 66.52 | 69.06 | 66.99 | 67.06 | 74.00 | ||||||||||||||
Book value per common share | $ | 23.17 | $ | 22.52 | $ | 22.10 | $ | 20.36 | $ | 19.99 | |||||||||
Tangible book value per common share (2) | 21.79 | 21.11 | 21.07 | 19.12 | 18.74 | ||||||||||||||
Common equity tier 1 to risk-weighted assets (3) | 11.95 | % | 11.79 | % | 12.35 | % | 9.64 | % | 9.35 | % | |||||||||
Tier 1 capital to risk-weighted assets (3) | 12.16 | 12.01 | 12.58 | 11.59 | 11.25 | ||||||||||||||
Total capital to risk-weighted assets (3) | 12.98 | 12.88 | 13.48 | 12.53 | 12.26 | ||||||||||||||
Tier 1 leverage ratio (3) | 11.21 | 11.34 | 11.63 | 10.65 | 10.53 | ||||||||||||||
____________________________
(1) | Calculated by dividing noninterest expense by the sum of net interest income plus noninterest income. |
(2) | Tangible book value per common share is a non-GAAP financial measure. For a reconciliation of this measure to the most comparable GAAP measure, see page 13 of this press release. |
(3) | December 31, 2018, ratios are estimated and calculated at the Company level, which is subject to the capital adequacy requirements of the Federal Reserve Board. |
7
Origin Bancorp, Inc.
Selected Financial Data
Twelve months ended | |||||||
(Dollars in thousands, except per share amounts) | December 31, 2018 | December 31, 2017 | |||||
Income statement and share amounts | (Unaudited) | ||||||
Net interest income | $ | 153,452 | $ | 130,305 | |||
Provision for credit losses | 1,014 | 8,336 | |||||
Noninterest income | 41,240 | 29,187 | |||||
Noninterest expense | 131,236 | 130,674 | |||||
Income before income tax expense | 62,442 | 20,482 | |||||
Income tax expense | 10,837 | 5,813 | |||||
Net income | $ | 51,605 | $ | 14,669 | |||
Basic earnings per common share (1) | $ | 2.21 | $ | 0.51 | |||
Diluted earnings per common share(1) | 2.20 | 0.50 | |||||
Dividends declared per common share | 0.13 | 0.13 | |||||
Weighted average common shares outstanding - basic | 21,995,990 | 19,418,278 | |||||
Weighted average common shares outstanding - diluted | 22,194,429 | 19,634,412 | |||||
Performance metrics and capital ratios | |||||||
Return on average stockholders' equity | 10.07 | % | 3.19 | % | |||
Return on average assets | 1.16 | 0.36 | |||||
Efficiency ratio (2) | 67.41 | 81.93 | |||||
____________________________
(1) | Due to the impact of average preferred shares outstanding on the calculation of earnings per share, the sum of quarterly periods may not agree to the sum of the annual periods presented. |
(2) | Calculated by dividing noninterest expense by the sum of net interest income plus noninterest income. |
8
Origin Bancorp, Inc.
Consolidated Balance Sheets
(Dollars in thousands) | December 31, 2018 | September 30, 2018 | June 30, 2018 | March 31, 2018 | December 31, 2017 | ||||||||||||||
Assets | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||||||||||||
Cash and due from banks | $ | 71,008 | $ | 60,716 | $ | 71,709 | $ | 52,989 | $ | 78,489 | |||||||||
Interest-bearing deposits in banks | 45,670 | 59,721 | 97,865 | 194,268 | 108,698 | ||||||||||||||
Federal funds sold | — | 20,000 | — | — | — | ||||||||||||||
Total cash and cash equivalents | 116,678 | 140,437 | 169,574 | 247,257 | 187,187 | ||||||||||||||
Securities: | |||||||||||||||||||
Available for sale | 575,644 | 585,788 | 507,513 | 414,157 | 404,532 | ||||||||||||||
Held to maturity | 19,169 | 19,602 | 19,731 | 19,860 | 20,188 | ||||||||||||||
Securities carried at fair value through income | 11,361 | 11,273 | 11,413 | 11,723 | 12,033 | ||||||||||||||
Total securities | 606,174 | 616,663 | 538,657 | 445,740 | 436,753 | ||||||||||||||
Non-marketable equity securities held in other financial institutions | 42,149 | 39,283 | 25,005 | 22,995 | 22,967 | ||||||||||||||
Loans held for sale | 52,210 | 50,658 | 62,072 | 48,988 | 65,343 | ||||||||||||||
Loans | 3,789,105 | 3,601,081 | 3,372,096 | 3,245,992 | 3,241,031 | ||||||||||||||
Less: allowance for loan losses | 34,203 | 35,727 | 34,151 | 34,132 | 37,083 | ||||||||||||||
Loans, net of allowance for loan losses | 3,754,902 | 3,565,354 | 3,337,945 | 3,211,860 | 3,203,948 | ||||||||||||||
Premises and equipment, net | 75,014 | 74,936 | 77,064 | 76,648 | 77,408 | ||||||||||||||
Mortgage servicing rights | 25,114 | 26,163 | 25,738 | 25,999 | 24,182 | ||||||||||||||
Cash surrender value of bank-owned life insurance | 32,706 | 32,487 | 28,326 | 28,185 | 27,993 | ||||||||||||||
Goodwill and other intangible assets, net | 32,861 | 33,228 | 24,113 | 24,219 | 24,336 | ||||||||||||||
Accrued interest receivable and other assets | 83,768 | 88,355 | 83,298 | 83,008 | 83,878 | ||||||||||||||
Total assets | $ | 4,821,576 | $ | 4,667,564 | $ | 4,371,792 | $ | 4,214,899 | $ | 4,153,995 | |||||||||
Liabilities and Stockholders' Equity | |||||||||||||||||||
Noninterest-bearing deposits | $ | 951,015 | $ | 976,260 | $ | 950,080 | $ | 885,883 | $ | 832,853 | |||||||||
Interest-bearing deposits | 2,027,720 | 1,985,757 | 1,995,798 | 2,071,626 | 2,060,068 | ||||||||||||||
Time deposits | 804,403 | 765,141 | 726,219 | 623,229 | 619,093 | ||||||||||||||
Total deposits | 3,783,138 | 3,727,158 | 3,672,097 | 3,580,738 | 3,512,014 | ||||||||||||||
FHLB advances and other borrowings | 445,224 | 358,532 | 139,092 | 132,224 | 144,357 | ||||||||||||||
Junior subordinated debentures | 9,644 | 9,637 | 9,631 | 9,625 | 9,619 | ||||||||||||||
Accrued expenses and other liabilities | 33,791 | 40,318 | 31,616 | 29,488 | 32,663 | ||||||||||||||
Total liabilities | 4,271,797 | 4,135,645 | 3,852,436 | 3,752,075 | 3,698,653 | ||||||||||||||
Commitments and contingencies | — | — | — | 34,991 | 34,991 | ||||||||||||||
Stockholders' equity | |||||||||||||||||||
Preferred stock - series SBLF | — | — | — | 48,260 | 48,260 | ||||||||||||||
Preferred stock - series D | — | — | — | 16,998 | 16,998 | ||||||||||||||
Common stock | 118,633 | 118,106 | 117,520 | 97,626 | 97,594 | ||||||||||||||
Additional paid-in capital | 242,041 | 240,832 | 238,260 | 146,201 | 146,061 | ||||||||||||||
Retained earnings | 191,585 | 179,178 | 167,628 | 156,498 | 145,122 | ||||||||||||||
Accumulated other comprehensive (loss) income | (2,480 | ) | (6,197 | ) | (4,052 | ) | (2,759 | ) | 1,307 | ||||||||||
549,779 | 531,919 | 519,356 | 462,824 | 455,342 | |||||||||||||||
Less: Retirement Plan-owned shares | — | — | — | 34,991 | 34,991 | ||||||||||||||
Total stockholders' equity | 549,779 | 531,919 | 519,356 | 427,833 | 420,351 | ||||||||||||||
Total liabilities and stockholders' equity | $ | 4,821,576 | $ | 4,667,564 | $ | 4,371,792 | $ | 4,214,899 | $ | 4,153,995 | |||||||||
9
Origin Bancorp, Inc.
Consolidated Quarterly Statements of Income
Three months ended | |||||||||||||||||||
December 31, 2018 | September 30, 2018 | June 30, 2018 | March 31, 2018 | December 31, 2017 | |||||||||||||||
Interest and dividend income | (Dollars in thousands, except per share amounts, unaudited) | ||||||||||||||||||
Interest and fees on loans | $ | 47,819 | $ | 43,872 | $ | 40,219 | $ | 37,474 | $ | 36,923 | |||||||||
Investment securities-taxable | 3,292 | 2,754 | 2,057 | 1,740 | 1,619 | ||||||||||||||
Investment securities-nontaxable | 996 | 1,129 | 1,156 | 1,184 | 1,187 | ||||||||||||||
Interest and dividend income on assets held in other financial institutions | 950 | 1,080 | 1,320 | 1,046 | 679 | ||||||||||||||
Federal funds sold | 1 | 7 | — | — | — | ||||||||||||||
Total interest and dividend income | 53,058 | 48,842 | 44,752 | 41,444 | 40,408 | ||||||||||||||
Interest expense | |||||||||||||||||||
Interest-bearing deposits | 8,980 | 7,891 | 6,820 | 5,980 | 5,447 | ||||||||||||||
FHLB advances and other borrowings | 1,878 | 1,314 | 624 | 604 | 605 | ||||||||||||||
Subordinated debentures | 139 | 140 | 138 | 136 | 138 | ||||||||||||||
Total interest expense | 10,997 | 9,345 | 7,582 | 6,720 | 6,190 | ||||||||||||||
Net interest income | 42,061 | 39,497 | 37,170 | 34,724 | 34,218 | ||||||||||||||
Provision (benefit) for credit losses | 1,723 | 504 | 311 | (1,524 | ) | 242 | |||||||||||||
Net interest income after provision (benefit) for credit losses | 40,338 | 38,993 | 36,859 | 36,248 | 33,976 | ||||||||||||||
Noninterest income | |||||||||||||||||||
Service charges and fees | 3,349 | 3,234 | 3,157 | 3,014 | 3,032 | ||||||||||||||
Mortgage banking revenue | 2,288 | 2,621 | 2,317 | 2,394 | 3,106 | ||||||||||||||
Insurance commission and fee income | 2,481 | 3,306 | 1,826 | 2,107 | 1,419 | ||||||||||||||
Loss on sales of securities, net | (8 | ) | — | — | — | — | |||||||||||||
(Loss) gain on sales and disposals of other assets, net | (23 | ) | (207 | ) | 121 | (61 | ) | (336 | ) | ||||||||||
Other fee income | 592 | 364 | 403 | 452 | 416 | ||||||||||||||
Other income | 1,909 | 919 | 2,791 | 1,894 | 1,078 | ||||||||||||||
Total noninterest income | 10,588 | 10,237 | 10,615 | 9,800 | 8,715 | ||||||||||||||
Noninterest expense | |||||||||||||||||||
Salaries and employee benefits | 21,333 | 21,054 | 19,859 | 18,241 | 18,444 | ||||||||||||||
Occupancy and equipment, net | 3,830 | 4,169 | 3,793 | 3,653 | 3,999 | ||||||||||||||
Data processing | 1,839 | 1,523 | 1,347 | 1,473 | 1,425 | ||||||||||||||
Electronic banking | 699 | 761 | 680 | 743 | 558 | ||||||||||||||
Communications | 513 | 490 | 510 | 515 | 493 | ||||||||||||||
Advertising and marketing | 1,351 | 1,245 | 1,022 | 657 | 1,065 | ||||||||||||||
Professional services | 1,024 | 982 | 598 | 665 | 1,167 | ||||||||||||||
Regulatory assessments | 666 | 411 | 660 | 720 | 739 | ||||||||||||||
Loan related expenses | 810 | 718 | 798 | 713 | 1,459 | ||||||||||||||
Office and operations | 1,516 | 1,499 | 1,588 | 1,278 | 1,389 | ||||||||||||||
Other expenses | 1,442 | 1,492 | 1,157 | 1,199 | 1,033 | ||||||||||||||
Total noninterest expense | 35,023 | 34,344 | 32,012 | 29,857 | 31,771 | ||||||||||||||
Income before income tax expense | 15,903 | 14,886 | 15,462 | 16,191 | 10,920 | ||||||||||||||
Income tax expense | 2,725 | 2,568 | 2,760 | 2,784 | 5,148 | ||||||||||||||
Net income | $ | 13,178 | $ | 12,318 | $ | 12,702 | $ | 13,407 | $ | 5,772 | |||||||||
Basic earnings per common share | $ | 0.56 | $ | 0.52 | $ | 0.54 | $ | 0.60 | $ | 0.23 | |||||||||
Diluted earnings per common share | 0.55 | 0.52 | 0.53 | 0.60 | 0.23 | ||||||||||||||
10
Origin Bancorp, Inc.
Loan Data
At and for the three months ended | |||||||||||||||||||
Loans held for investment | December 31, 2018 | September 30, 2018 | June 30, 2018 | March 31, 2018 | December 31, 2017 | ||||||||||||||
Loans secured by real estate: | (Dollars in thousands, unaudited) | ||||||||||||||||||
Commercial real estate | $ | 1,228,402 | $ | 1,162,274 | $ | 1,091,581 | $ | 1,096,948 | $ | 1,083,275 | |||||||||
Construction/land/land development | 429,660 | 406,249 | 380,869 | 340,684 | 322,404 | ||||||||||||||
Residential real estate | 629,714 | 585,931 | 563,016 | 583,461 | 570,583 | ||||||||||||||
Total real estate | 2,287,776 | 2,154,454 | 2,035,466 | 2,021,093 | 1,976,262 | ||||||||||||||
Commercial and industrial | 1,272,566 | 1,193,035 | 1,046,488 | 1,012,760 | 989,220 | ||||||||||||||
Mortgage warehouse lines of credit | 207,871 | 233,325 | 270,494 | 191,154 | 255,044 | ||||||||||||||
Consumer | 20,892 | 20,267 | 19,648 | 20,985 | 20,505 | ||||||||||||||
Total loans held for investment | 3,789,105 | 3,601,081 | 3,372,096 | 3,245,992 | 3,241,031 | ||||||||||||||
Less: Allowance for loan losses | 34,203 | 35,727 | 34,151 | 34,132 | 37,083 | ||||||||||||||
Loans held for investment, net | $ | 3,754,902 | $ | 3,565,354 | $ | 3,337,945 | $ | 3,211,860 | $ | 3,203,948 | |||||||||
Nonperforming assets | |||||||||||||||||||
Nonperforming loans held for investment | |||||||||||||||||||
Commercial real estate | $ | 8,281 | $ | 8,851 | $ | 8,712 | $ | 8,851 | $ | 1,745 | |||||||||
Construction/land/land development | 935 | 960 | 1,197 | 1,272 | 1,097 | ||||||||||||||
Residential real estate | 6,668 | 7,220 | 7,713 | 7,226 | 7,166 | ||||||||||||||
Commercial and industrial | 15,792 | 9,285 | 8,831 | 9,312 | 13,512 | ||||||||||||||
Consumer | 180 | 238 | 340 | 349 | 282 | ||||||||||||||
Total nonperforming loans held for investment | 31,856 | 26,554 | 26,793 | 27,010 | 23,802 | ||||||||||||||
Nonperforming loans held for sale | 741 | 1,391 | 1,949 | 246 | — | ||||||||||||||
Total nonperforming loans | 32,597 | 27,945 | 28,742 | 27,256 | 23,802 | ||||||||||||||
Repossessed assets | 3,739 | 3,306 | 654 | 722 | 574 | ||||||||||||||
Total nonperforming assets | $ | 36,336 | $ | 31,251 | $ | 29,396 | $ | 27,978 | $ | 24,376 | |||||||||
Classified assets | $ | 82,914 | $ | 80,092 | $ | 87,289 | $ | 91,760 | $ | 91,869 | |||||||||
Allowance for loan losses | |||||||||||||||||||
Balance at beginning of period | $ | 35,727 | $ | 34,151 | $ | 34,132 | $ | 37,083 | $ | 39,445 | |||||||||
Provision (benefit) for loan losses | 1,886 | 1,113 | 140 | (1,558 | ) | 504 | |||||||||||||
Loans charged off | 3,583 | 1,009 | 794 | 1,738 | 4,180 | ||||||||||||||
Loan recoveries | 173 | 1,472 | 673 | 345 | 1,314 | ||||||||||||||
Net charge offs | 3,410 | (463 | ) | 121 | 1,393 | 2,866 | |||||||||||||
Balance at end of period | $ | 34,203 | $ | 35,727 | $ | 34,151 | $ | 34,132 | $ | 37,083 | |||||||||
Credit quality ratios | |||||||||||||||||||
Total nonperforming assets to total assets | 0.75 | % | 0.67 | % | 0.67 | % | 0.66 | % | 0.59 | % | |||||||||
Total nonperforming loans to total loans | 0.85 | 0.77 | 0.84 | 0.83 | 0.72 | ||||||||||||||
Nonperforming loans held for investment to loans held for investment | 0.84 | 0.74 | 0.79 | 0.83 | 0.73 | ||||||||||||||
Allowance for loan losses to nonperforming loans held for investment | 107.37 | 134.54 | 127.46 | 126.37 | 155.80 | ||||||||||||||
Allowance for loan losses to total loans held for investment | 0.90 | 0.99 | 1.01 | 1.05 | 1.14 | ||||||||||||||
Net charge offs (recoveries) to total average loans held for investment (annualized) | 0.37 | (0.05 | ) | 0.01 | 0.18 | 0.36 | |||||||||||||
11
Origin Bancorp, Inc.
Average Balances and Yields/Rates
Three months ended | ||||||||||||||||||||
December 31, 2018 | September 30, 2018 | December 31, 2017 | ||||||||||||||||||
Average Balance | Yield/Rate | Average Balance | Yield/Rate | Average Balance | Yield/Rate | |||||||||||||||
Assets | (Dollars in thousands, unaudited) | |||||||||||||||||||
Commercial real estate | $ | 1,176,837 | 5.07 | % | $ | 1,122,377 | 4.96 | % | $ | 1,054,041 | 4.57 | % | ||||||||
Construction/land/land development | 407,120 | 5.55 | 392,936 | 5.34 | 331,139 | 4.82 | ||||||||||||||
Residential real estate | 604,383 | 4.87 | 575,126 | 4.75 | 553,536 | 4.54 | ||||||||||||||
Commercial and industrial | 1,251,969 | 5.22 | 1,120,431 | 4.96 | 1,019,238 | 4.35 | ||||||||||||||
Mortgage warehouse lines of credit | 187,801 | 5.54 | 228,031 | 5.37 | 221,722 | 4.58 | ||||||||||||||
Consumer | 21,809 | 6.76 | 20,129 | 6.91 | 21,042 | 6.39 | ||||||||||||||
Loans held for investment | 3,649,919 | 5.17 | 3,459,030 | 5.00 | 3,200,718 | 4.53 | ||||||||||||||
Loans held for sale | 22,168 | 4.70 | 22,157 | 5.20 | 37,733 | 4.11 | ||||||||||||||
Loans Receivable | 3,672,087 | 5.17 | 3,481,187 | 5.00 | 3,238,451 | 4.52 | ||||||||||||||
Investment securities-taxable | 499,489 | 2.64 | 440,676 | 2.50 | 301,587 | 2.15 | ||||||||||||||
Investment securities-nontaxable | 113,183 | 3.52 | 125,489 | 3.60 | 134,771 | 3.52 | ||||||||||||||
Non-marketable equity securities held in other financial institutions | 40,176 | 2.64 | 32,058 | 2.31 | 22,942 | 3.28 | ||||||||||||||
Interest-bearing balances due from banks | 108,126 | 2.51 | 148,853 | 2.38 | 152,512 | 1.27 | ||||||||||||||
Federal funds sold | — | — | 1,304 | 2.03 | — | — | ||||||||||||||
Total interest-earning assets | 4,433,061 | 4.75 | % | 4,229,567 | 4.58 | % | 3,850,263 | 4.16 | % | |||||||||||
Noninterest-earning assets(1) | 308,125 | 310,804 | 299,044 | |||||||||||||||||
Total assets | $ | 4,741,186 | $ | 4,540,371 | $ | 4,149,307 | ||||||||||||||
Liabilities and Stockholders' Equity | ||||||||||||||||||||
Liabilities | ||||||||||||||||||||
Interest-bearing liabilities | ||||||||||||||||||||
Savings and interest-bearing transaction accounts | $ | 1,932,958 | 1.10 | % | $ | 1,963,821 | 1.01 | % | $ | 2,005,788 | 0.74 | % | ||||||||
Time deposits | 789,816 | 1.81 | 740,893 | 1.54 | 612,264 | 1.10 | ||||||||||||||
Total interest-bearing deposits | 2,722,774 | 1.31 | 2,704,714 | 1.16 | 2,618,052 | 0.83 | ||||||||||||||
Borrowings | 358,810 | 1.95 | 204,607 | 2.40 | 75,995 | 3.04 | ||||||||||||||
Securities sold under agreements to repurchase | 37,075 | 1.23 | 34,284 | 0.92 | 30,904 | 0.29 | ||||||||||||||
Subordinated debentures | 9,641 | 5.66 | 9,633 | 5.67 | 9,615 | 5.71 | ||||||||||||||
Total interest-bearing liabilities | 3,128,300 | 1.39 | 2,953,238 | 1.26 | 2,734,566 | 0.90 | ||||||||||||||
Noninterest-bearing deposits | 1,001,033 | 984,330 | 883,703 | |||||||||||||||||
Other liabilities(1) | 70,648 | 68,553 | 72,598 | |||||||||||||||||
Total liabilities | 4,199,981 | 4,006,121 | 3,690,867 | |||||||||||||||||
Stockholders' Equity | 541,205 | 534,250 | 458,440 | |||||||||||||||||
Total liabilities and stockholders' equity | $ | 4,741,186 | $ | 4,540,371 | $ | 4,149,307 | ||||||||||||||
Net interest spread | 3.36 | % | 3.32 | % | 3.26 | % | ||||||||||||||
Net interest margin | 3.76 | % | 3.70 | % | 3.53 | % | ||||||||||||||
Net interest income margin - (tax- equivalent)(2) | 3.82 | % | 3.76 | % | 3.62 | % | ||||||||||||||
__________________________
(1) | Includes Government National Mortgage Association ("GNMA") repurchase average balances of $29.2 million, $29.9 million and $30.0 million for the three months ended December 31, 2018, September 30, 2018, and December 31, 2017, 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. Income from tax-exempt investments and tax credits were computed using a Federal income tax rate of 21% for the three months ended December 31, 2018, and September 30, 2018, and 35% for the three months ended December 31, 2017. The tax-equivalent net interest margin would have been 3.59% for the three months ended December 31, 2017, if the Company had been subject to the 21% Federal income tax rate enacted in the Tax Cuts and Jobs Act. |
12
Origin Bancorp, Inc.
Non-GAAP
Reconciliation
Tangible book value per common share is a non-GAAP financial measure and is determined by dividing total stockholders' equity, less preferred stock series SBLF and series D, less goodwill and other intangible assets, net, by common shares outstanding. The most comparable GAAP financial measure is book value per common share.
The following table reconciles, at the dates set forth below, the non-GAAP financial measure to the most directly comparable financial measure calculated in accordance with GAAP.
December 31, 2018 | September 30, 2018 | June 30, 2018 | March 31, 2018 | December 31, 2017 | |||||||||||||||
Calculation of book value per common share | (Dollars in thousands, except per share amounts, unaudited) | ||||||||||||||||||
Total stockholders' equity(1) | $ | 549,779 | $ | 531,919 | $ | 519,356 | $ | 462,824 | $ | 455,342 | |||||||||
Less: preferred stock - series SBLF | — | — | — | 48,260 | 48,260 | ||||||||||||||
Less: preferred stock - series D | — | — | — | 16,998 | 16,998 | ||||||||||||||
Common stockholders' equity | $ | 549,779 | $ | 531,919 | $ | 519,356 | $ | 397,566 | $ | 390,084 | |||||||||
Common shares outstanding at end of period | 23,726,559 | 23,621,235 | 23,504,063 | 19,525,241 | 19,518,752 | ||||||||||||||
Book value per common share | $ | 23.17 | $ | 22.52 | $ | 22.10 | $ | 20.36 | $ | 19.99 | |||||||||
Calculation of tangible book value per common share | |||||||||||||||||||
Total stockholders' equity(1) | $ | 549,779 | $ | 531,919 | $ | 519,356 | $ | 462,824 | $ | 455,342 | |||||||||
Less: preferred stock - series SBLF | — | — | — | 48,260 | 48,260 | ||||||||||||||
Less: preferred stock - series D | — | — | — | 16,998 | 16,998 | ||||||||||||||
Less: goodwill and other intangible assets, net | 32,861 | 33,228 | 24,113 | 24,219 | 24,336 | ||||||||||||||
Total tangible common stockholders' equity | $ | 516,918 | $ | 498,691 | $ | 495,243 | $ | 373,347 | $ | 365,748 | |||||||||
Common shares outstanding at end of period | 23,726,559 | 23,621,235 | 23,504,063 | 19,525,241 | 19,518,752 | ||||||||||||||
Tangible book value per common share | $ | 21.79 | $ | 21.11 | $ | 21.07 | $ | 19.12 | $ | 18.74 | |||||||||
____________________________
(1) Includes Retirement Plan-owned shares for all periods prior to June 30, 2018.
13
4Q AND FULL YEAR TWENTY18 EARNINGS PRESENTATION
Forward-Looking Statements and Non-GAAP Information 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 strategy, projected plans and objectives, and related transactions, integration of acquired businesses, ability to recognize anticipated operational efficiencies, and other projections based on macroeconomic and industry trends, which are all subject to change and may be inherently unreliable due to the multiple factors that impact economic 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 “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 the Company'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, including any loans acquired in acquisition transactions; 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 local market area; 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 and 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; 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 including terrorist attack. For discussion of these and other risks that may cause actual results to differ from expectations, please refer to “Cautionary Note Regarding Forward-Looking Statements” in Origin’s most recent Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission ("SEC") and “Risk Factors” in Origin’s prospectus filed with the SEC on May 9, 2018, pursuant to Section 424(b) of the Securities Act of 1933, as amended and any updates to those risk factors set forth in Origin’s subsequent Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q or 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. Origin reports its results in accordance with United States generally accepted accounting principles (“GAAP”). However, management believes that certain supplemental non-GAAP financial measures used in managing its business may provide meaningful information to investors about underlying trends in its business and management uses these non-GAAP measures to evaluate the Company’s operating performance and believes that these non-GAAP measures provide information that is important to investors and that is useful in understanding Origin's results of operations. 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: • Tangible common equity is defined as total stockholders’ equity less series SBLF preferred stock, series D preferred stock and goodwill and other intangible assets, net • Tangible assets is defined as total assets less goodwill and other intangible assets, net • Tangible common equity to tangible assets is a ratio that is determined by dividing tangible common equity by tangible assets • Tangible book value per common share is determined by dividing tangible common equity by common shares outstanding at the end of the period 2
COMPANY SNAPSHOT • Origin Bank was founded in 1912 • OBNK is headquartered in Ruston, LA 8 • 41 banking centers operating across Texas, 19 5 Louisiana & Mississippi • Strong commercial focus with 39% C&I and 43% CRE lending mix across our footprint FINANCIAL HIGHLIGHTS 9 2018 Q4 DOLLARS IN MILLIONS TOTAL ASSETS $4,822 TOTAL LOANS HELD FOR INVESTMENT $3,789 TOTAL DEPOSITS $3,783 TOTAL STOCKHOLDERS' EQUITY $550 DOLLARS IN MILLIONS TANGIBLE COMMON EQUITY (1) DALLAS - FORT WORTH $517 HOUSTON Entry: 2008 Entry: 2013 Loans: $1,275 TANGIBLE COMMON EQUITY/ TANGIBLE ASSETS (1) Loans: $674 Deposits: $772 10.8% Deposits: $623 Banking Centers: 8 Banking Centers: 9 TOTAL RBC RATIO 13.0% NORTH LOUISIANA CENTRAL MISSISSIPPI Entry: 1912 Entry: 2010 Note: All financial information and other Origin Bank data as of Loans: $1,192 Loans: $648 12/31/18. Deposits: $1,800 Deposits: $588 (1) As used in this presentation, tangible common equity and tangible Banking Centers: 19 Banking Centers: 5 common equity/tangible assets are non-GAAP financial measures. For a reconciliation of these non-GAAP financial measures to their 3 comparable GAAP measures, see slide 16 of this presentation
FOURTH QUARTER FINANCIAL HIGHLIGHTS 2018 HIGHLIGHTS DOLLARS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS Linked • Net interest income was at a historic 2018Q4 2018Q3 2017Q4 Q Δ YoY Δ high for our company, increasing by Balance Sheet $2.6 million, or 6.5%, over the Total Loans Held For Investment $ 3,789,105 $ 3,601,081 $ 3,241,031 5.2% 16.9% previous quarter. Total Assets 4,821,576 4,667,564 4,153,995 3.3% 16.1% Total Deposits 3,783,138 3,727,158 3,512,014 1.5% 7.7% Tangible Common Equity(1) 516,918 498,691 365,748 3.7% 41.3% • Yield earned on total loans held for (1) investment during 2018Q4 was 5.17%, Tangible Book Value Per Common Share $ 21.79 $ 21.11 $ 18.74 3.2% 16.3% up 17 basis points from the previous quarter. Cost of total deposits increased 11 basis points in the same period. Income Statement Net Interest Income $ 42,061 $ 39,497 $ 34,218 6.5% 22.9% • Net interest margin was 3.82% (FTE), Provision for Credit Losses 1,723 504 242 241.9% 612.0% 8,715 representing an increase of 6 basis Noninterest Income 10,588 10,237 3.4% 21.5% 31,771 points over the previous quarter. Noninterest Expense 35,023 34,344 2.0% 10.2% Net Income 13,178 12,318 5,772 7.0% 128.3% Diluted EPS 0.55 0.52 0.23 5.8% 139.1% Dividends Declared Per Common Share $ 0.0325 $ 0.0325 $ 0.0325 N/C N/C (N/C: No change) Selected Ratios Net Interest Margin (FTE) 3.82% 3.76% 3.62% Efficiency Ratio 66.52% 69.06% 74.00% Return on Average Assets (annualized) 1.10% 1.08% 0.55% Return on Average Equity (annualized) 9.66% 9.15% 5.00% (1) As used in this presentation, tangible common equity and tangible book value per common share are non-GAAP financial measures. For a reconciliation of these non- GAAP financial measures to their comparable GAAP measures, see slide 16 of this presentation. 4
FULL YEAR FINANCIAL HIGHLIGHTS 2018 HIGHLIGHTS DOLLARS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS Years Ended • Successfully completed the Initial Balance Sheet December 31, 2018 December 31, 2017 YoY Δ Public Offering of the Company's Total Loans Held For Investment $ 3,789,105 $ 3,241,031 16.9 % common stock. Total Assets 4,821,576 4,153,995 16.1 % Total Deposits 3,783,138 3,512,014 7.7 % • Net interest income was at a historic Tangible Common Equity (1) 516,918 365,748 41.3 % high for our company, increasing by Tangible Book Value Per Common Share(1) $ 21.79 $ 18.74 16.3 % $23 million, or 17.8%, over 2017. • Yield earned on total loans held for Income Statement investment during 2018 was 5.0%, up Net Interest Income $ 153,452 $ 130,305 17.8 % 58 basis points from the previous Provision for Credit Losses 1,014 8,336 (87.8)% year. Cost of total deposits increased Noninterest Income 41,240 29,187 41.3 % 25 basis points in the same period. Noninterest Expense 131,236 130,674 0.4 % Net Income 51,605 14,669 251.8 % • Loans held for investment grew by Diluted EPS 2.20 0.50 340.0 % $548 million, or 16.9%, in 2018 Dividends Declared Per Common Share $ 0.13 $ 0.13 N/C through execution of our organic (N/C: No change) growth strategy which includes lift-out teams in our Houston market. Selected Ratios • Completed acquisition of Reeves, Net Interest Margin (FTE) 3.75% 3.52% Coon & Funderburg ("RCF") Efficiency Ratio 67.41% 81.93% insurance agency. Return on Average Assets 1.16% 0.36% Return on Average Equity 10.07% 3.19% (1) As used in this presentation, tangible common equity and tangible book value per common share are non-GAAP financial measures. For a reconciliation of these non- GAAP financial measures to their comparable GAAP measures, see slide 16 of this presentation. 5
BALANCE SHEET WELL- AVERAGE INTEREST EARNING ASSETS & NIM (FTE) POSITIONED FOR DOLLARS IN MILLIONS 4.00% $4,433 ) $ GROWTH & PROFITABILITY ( S ) 4,400 T E E T F S ( 3.90% $4,230 S N A I G • Consistent increase in yields G 4,200 N R 3.82% I A on interest earning assets $4,055 N M R A T 3.80% E S 3.76% 4,000 E 3.74% T R • Strong growth in average loan $3,897 S E $3,850 E T R balances in 2018 N E I 3.70% 3.68% T T 3,800 N I E . N • Net interest margin expanding 3.62% G V A along with average balances 3.60% 3,600 2017Q4 2018Q1 2018Q2 2018Q3 2018Q4 AVERAGE LOANS HFI & YIELDS DOLLARS IN MILLIONS 6.00% $3,650 $3,600 $3,459 ) 5.50% $ ( $3,400 S N ) A % $3,284 ( O 5.17% L D 5.00% $3,201 L $3,186 E E $3,200 G I 5.00% A Y 4.89% R 4.73% E V 4.50% A 4.53% $3,000 4.00% $2,800 6 2017Q4 2018Q1 2018Q2 2018Q3 2018Q4
ASSET SENSITIVITY - % CHANGE IN NET INTEREST INCOME (12/31/18) ASSET SENSITIVE BALANCE SHEET 19.2% 14.5% 9.7% 4.9% • Well-positioned to benefit —% from a rising rate environment (6.2)% • Substantial growth in rate (15.3)% sensitive assets over the last five years -200 bps -100 bps 0 bps 100 bps 200 bps 300 bps 400 bps ASSET SENSITIVITY - % CHANGE IN NET INTEREST INCOME (12/31/17) 33.1% 24.9% 16.7% 8.4% —% (8.6)% (19.0)% -200 bps -100 bps 0 bps 100 bps 200 bps 300 bps 400 bps Note: Change in net interest income assumes an instantaneous shock of interest rates. 7
NET REVENUE DISTRIBUTION – 2018Q4 DIVERSIFIED & GROWING Service Charges & Fees: REVENUE STREAMS 6% Mortgage Banking Revenue: 4% • Meaningful noninterest income Insurance Commission & Fee Income: supplements interest related 5% revenue Other: 5% • Comprehensive product suite delivered with high quality, responsive customer service Net Interest Income: 80% • Other revenue streams include insurance and mortgage products Noninterest Income 20% • Mortgage operations are focused on retail originations NET REVENUE TREND within our market footprint and servicing revenue on 20% 22% 22% 21% 20% our MSR portfolio • Insurance presence was enhanced in our North Louisiana market through 80% 78% 78% 79% 80% the recent RCF acquisition. • We believe these products 2017Q4 2018Q1 2018Q2 2018Q3 2018Q4 provide revenue stream diversification and enhance Net Interest Income Noninterest Income 8 client relationships
ABILITY TO LEVERAGE OPERATING EFFICIENCY INFRASTRUCTURE 90.00% 4.00% • Cost-effective, centralized back office functions are performed in our North 85.00% Louisiana operations center 3.04% 3.00% 2.94% 2.88% 2.93% 3.00% • Infrastructure exists to support significant asset growth at 80.00% S increasing levels of profitability T E O I S T S A A R • Recent investments in E Y G C 75.00% 74.00% 2.00% A systems, technology, digital N R E E C I banking and enterprise risk V F A / F management E E I N • Opportunity to enhance ROAA 70.00% 69.06% through team lift-outs in our footprint 1.00% 67.06% 66.99% 66.52% • Efficiency ratio improved 65.00% 2018Q4 due to increased Net Interest Income and Noninterest income 60.00% 0.00% 2017Q4 2018Q1 2018Q2 2018Q3 2018Q4 9
OUR MARKETS AVERAGE DEPOSITS & DEPOSIT COST DOLLARS IN MILLIONS $3,658 150 bps $3,458 • DIVERSE GEOGRAPHIC $3,235 $3,337 125 bps FOOTPRINT $2,814 t s 100 bps o C t • Attractive combination of stable, low i 75 bps s o cost markets and markets p e 50 bps experiencing metropolitan growth D 25 bps • Expansion through organic growth 0 bps and selective M&A opportunities 2014 2015 2016 2017 2018 LA TX MS LA TX MS • TRACK RECORD OF GROWTH IN NEW MARKETS • Success in growing loans and LOANS HFI DOLLARS IN MILLIONS deposits organically in diverse, new $3,789 markets $3,112 $3,241 $2,897 $3,013 • Culture and brand are unique, enabling Origin to attract talented bankers and banking relationships across markets 2014 2015 2016 2017 2018 LA TX MS 10
DIVERSIFIED COMMERCIAL LOAN COMPOSITION – 2018Q4 LOAN PORTFOLIO DOLLARS IN MILLIONS • Focus on commercial lending Other: 1% to middle market and small businesses as well as their owners and executives C&D: 11% Residential: Owner Occupied • Commercial loans represent 17% CRE: 12% cumulative 82% of portfolio as of 12/31/18 • Loan growth potential Non-Owner enhanced by diverse portfolio C&I: 34% Occupied CRE: 20% • Commercial real estate loan concentrations were below regulatory guidelines Mortgage Warehouse: 5% Total Ending Loans HFI at 12/31/18: $3,789 11
DEPOSIT COMPOSITION – 2018Q4 GROWING CORE DEPOSIT FRANCHISE Savings: 4% Brokered: 9% • Continued success in growing Noninterest- core deposits, especially bearing noninterest-bearing deposits. demand: 25% Time deposits: 21% Interest- • Low cost of deposits driven by bearing legacy North Louisiana demand: franchise Money market: 19% 22% • Ranked 1st in deposit market share in Ruston, LA 2018Q4 Cost of Deposits: 0.96% and Monroe, LA MSA’s AVERAGE NONINTEREST-BEARING DEPOSITS $1,000 30.0% S T • Relationship bankers $949 I S motivated to grow core O P ) 28.0% E deposits $ D ( $900 E S N G $841 A O I R • Builds and strengthens L 26.0% E L I 25.9% V M client relationships and $800 A L N I provides stable funding for $759 A T S 24.0% O R 24.3% growth T A L F L $694 O O $700 T D 22.7% • Expansion markets 22.0% N E C generating further growth in R 21.4% E noninterest-bearing deposits P $600 20.0% 2015 2016 2017 2018 12
UNDERWRITING & CREDIT NPLs / LOANS HFI CULTURE 0.83% 0.84% 0.79% • Excellent track record of 0.73% 0.74% credit quality across core commercial lending portfolio • Seasoned lenders with strong credit backgrounds and significant experience in our markets 2017Q4 2018Q1 2018Q2 2018Q3 2018Q4 • Centralized underwriting for (1) all loans NCOs / AVERAGE LOANS HFI • Strong underwriting 0.36% 0.37% guidelines include global cash flow analysis and personal guarantees 0.18% 0.01% (0.05)% (1) Based on annualized quarterly net charge-offs 2017Q4 2018Q1 2018Q2 2018Q3 2018Q4 13
STRONG CAPITAL TOTAL RISK-BASED CAPITAL POSITION DOLLARS IN MILLIONS $35 $47 $39 • Robust capital levels with $44 opportunity for deployment through organic growth and $529 $433 strategic acquisitions $379 $423 • IPO net proceeds partially used to redeem SBLF 2015 2016 2017 2018 preferred stock Tier 1 Capital Tier 2 Capital CAPITAL RATIOS 14.5% 13.5% 13.5% 12.9% 13.0% 12.3% 12.5% 12.4% 12.5% 11.8% 11.9% 11.5% 11.4% 10.5% 9.6% 10.8% 10.8% 9.3% 9.5% 8.5% 8.9% 8.9% (1) As used in this presentation, tangible common 7.5% equity to tangible assets is a non-GAAP financial 2017Q4 2018Q1 2018Q2 2018Q3 2018Q4 measure. For a reconciliation of non-GAAP financial measures to their comparable GAAP measures, see slide 16 of this presentation. TCE /TA(1) CET1 Total RBC 14
Increase scale across the franchise, and Improve operational efficiency and particularly in Houston increase profitability Focused effort to improve margin and risk-adjusted returns Grow client base and continue capturing market share Continue our disciplined approach to organic loan and deposit growth Successfully recruit experienced lenders and teams Continue to evaluate potential M&A Focus on existing and contiguous opportunities markets 15
Reconciliation of Non-GAAP Financial Measures DOLLARS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS 2018Q4 2018Q3 2018Q2 2018Q1 2017Q4 Calculation of Tangible Common Equity: Total Stockholders' Equity $ 549,779 $ 531,919 $ 519,356 $ 462,824 $ 455,342 Less: Preferred Stock - Series SBLF — — — 48,260 48,260 Less: Preferred Stock - Series D — — — 16,998 16,998 Total Common Shareholders' Equity 549,779 531,919 519,356 397,566 390,084 Less: Goodwill and Other Intangible Assets, Net 32,861 33,228 24,113 24,219 24,336 Total Tangible Common Equity $ 516,918 $ 498,691 $ 495,243 $ 373,347 $ 365,748 Common Shares Outstanding at the End of the Period 23,726,559 23,621,235 23,504,063 19,525,241 19,518,752 Book Value per Common Share $ 23.17 $ 22.52 $ 22.10 $ 20.36 $ 19.99 Calculation of Tangible Assets: Total Assets $ 4,821,576 $ 4,667,564 $ 4,371,792 $ 4,214,899 $ 4,153,995 Less: Goodwill and Other Intangible Assets, Net 32,861 33,228 24,113 24,219 24,336 Total Tangible Assets $ 4,788,715 $ 4,634,336 $ 4,347,679 $ 4,190,680 $ 4,129,659 Tangible Common Equity to Tangible Assets 10.79% 10.76% 11.39% 8.91% 8.86% Calculation of Tangible Book Value per Common Share: Common Shares Outstanding at the End of the Period 23,726,559 23,621,235 23,504,063 19,525,241 19,518,752 Tangible Book Value per Common Share $ 21.79 $ 21.11 $ 21.07 $ 19.12 $ 18.74 16
Exhibit 99.3
FOR IMMEDIATE RELEASE
January 23, 2019
Origin Bancorp, Inc. Announces Declaration of Quarterly Cash Dividend
RUSTON, LOUISIANA, (January 23, 2019) - Origin Bancorp, Inc. (Nasdaq: OBNK) (“Origin”), the holding company for Origin Bank, today announced that on January 23, 2019, its Board of Directors declared a quarterly cash dividend of $0.0325 per share of its common stock. The cash dividend will be paid on February 28, 2019, to stockholders of record as of the close of business on February 14, 2019.
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 41 banking centers located from Dallas/Fort Worth, Texas across North Louisiana to Central Mississippi, as well as in Houston, Texas. For more information, visit www.origin.bank.
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 “will likely result,” “are expected to,” “will continue,” “is anticipated,” “estimate,” “project,” “will,” “intends” or similar expressions 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, including, among other things: the expected payment date of its quarterly cash dividend; the expected cost savings, synergies and other financial benefits from acquisition or disposition transactions might not be realized within the expected time frames or at all and costs or difficulties relating to integration matters might be greater than expected; changes in economic conditions; legislative changes; 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; fluctuations in the price of oil, natural gas and other commodities; competition; 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 revise any forward-looking statements to reflect events or circumstances 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