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)
(Exact name of Registrant as specified in its charter)
| (State or other jurisdiction of incorporation) | (Commission File No.) | (I.R.S. Employer Identification No.) | ||||||||||||
| (Address of principal executive offices including zip code) | ||
(318 ) 255-2222
| (Registrant's telephone number, including area code) | ||
| (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:
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
| 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 27, 2021, Origin Bancorp, Inc. (the "Registrant") issued a press release announcing its fourth quarter and 2020 full year 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 28, 2021, at 8:00 a.m. Central Time, the Registrant will host an investor conference call and webcast to review its fourth quarter and 2020 full year financial results. The webcast will include presentation materials, which consist of information regarding the Registrant's results of operations and financial performance. The presentation materials will be posted on the Registrant's website on January 27, 2021. 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 27, 2021, the Registrant issued a press release announcing that the board of directors of the Registrant declared a quarterly cash dividend of $0.10 per share of its common stock. The cash dividend will be paid on February 26, 2021, to stockholders of record as of the close of business on February 12, 2021. The press release is attached to this report as Exhibit 99.3, which is incorporated herein by reference.
| ITEM 9.01 | Financial Statements and Exhibits | ||||
| (d) | Exhibits. | ||||
| Exhibit 99.1 | |||||
| Exhibit 99.2 | |||||
| Exhibit 99.3 | |||||
| Exhibit 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | ||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
Dated: January 27, 2021 | 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 2020 FULL YEAR
RUSTON, Louisiana (January 27, 2021) - Origin Bancorp, Inc. (Nasdaq: OBNK) ("Origin" or the "Company"), the holding company for Origin Bank (the "Bank"), today announced net income of $17.6 million for the quarter ended December 31, 2020. This represents an increase of $4.5 million from the quarter ended September 30, 2020, and an increase of $4.7 million from the quarter ended December 31, 2019. Diluted earnings per share for the quarter ended December 31, 2020, were $0.75, up $0.19 from the linked quarter and up $0.20 from the quarter ended December 31, 2019. Pre-tax pre-provision earnings for the quarter were $28.3 million, a decrease of 5.4% on a linked quarter basis, and a 54.1% increase on a prior year quarter basis, while the efficiency ratio improved to 57.9%, an 867 basis point decrease from the quarter ended December 31, 2019.
Net income for the year ended December 31, 2020, was $36.4 million, representing a decrease of $17.5 million compared to the year ended December 31, 2019, primarily reflecting a year-over-year increase in provision expense, offset by higher net interest income and noninterest income. Diluted earnings per share for the year ended December 31, 2020, was $1.55, representing a decrease of $0.73 from diluted earnings per share of $2.28 for the year ended December 31, 2019.
“I am extremely proud that our employees continue to remain committed to our culture and creating opportunities out of challenges to better serve our customers and communities", said Drake Mills, Chairman, President, and CEO of Origin Bancorp, Inc. “We believe our company has shown amazing resiliency, and we are strategically positioned to build sustainable, long term value for our stakeholders and continue to help the economic recovery across our footprint.”
Financial Highlights
•Net income was $17.6 million for the quarter ended December 31, 2020, achieving a historic high compared to $13.1 million for the linked quarter and $12.8 million for the quarter end December 31, 2019.
•Net interest income also achieved a historic high, reflecting $51.8 million for the quarter ended December 31, 2020, compared to $50.6 million for the linked quarter and $44.1 million for the quarter ended December 31, 2019.
•Diluted earnings per share for the quarter ended December 31, 2020 were $0.75, compared to $0.56 for the linked quarter and $0.55 for the quarter ended December 31, 2019.
•Provision expense was $6.3 million for the quarter ended December 31, 2020, compared to provision expense of $13.6 million for the linked quarter and $2.4 million for the quarter ended December 31, 2019.
•Total LHFI were $5.72 billion at December 31, 2020, an increase of $112.1 million, or 2.0%, from September 30, 2020, and an increase of $1.58 billion, or 38.2%, from December 31, 2019.
•Total deposits at December 31, 2020, were $5.75 billion, a decrease of $184.6 million, or 3.1%, from September 30, 2020, and an increase of $1.52 billion, or 36.0%, from December 31, 2019.
•The Company completed an offering of $80 million in aggregate principal amount of subordinated notes due 2030 in October 2020. The notes qualify as Tier 2 capital for the Company and approximately $51.0 million was contributed to the Bank and qualifies as Tier 1 capital for regulatory capital purposes for Origin Bank.
1
Coronavirus (COVID-19)
Origin has continued to meet customers' needs while keeping the safety and well-being of the Company's employees and customers as its top priority. The Company implemented a COVID-19 hotline and a temporary pandemic Paid Time Off policy to assist employees. The Company's offices and all branches remained open with all drive-thrus fully operational. The Company has maintained social distancing measures for its employees working in the Company's offices, including appointment-only restricted lobby access and requiring employees to wear face masks unless working in an office or other location that permits social distancing. The Company has also enhanced its sanitation protocols, implemented return-to-work screening protocols following potential exposures, as well as other measures consistent with applicable federal, state, and local guidelines to promote the safety and health of its employees and customers. To allow for more normalized customer operations, the Company has installed thermal kiosks for temperature checks at the entrance of each location and will evaluate any additional safety protocols to allow unrestricted lobby access in the future, if the circumstances allow.
Credit Quality
The COVID-19 pandemic has continued to have a severe impact on the U.S. economy leading to elevated unemployment levels and a recession. The Company's results for 2020 have been impacted by higher provision expense resulting in an increase in the allowance for credit losses due to the COVID-19 pandemic and the uncertainty surrounding the economic outlook.
The table below includes key credit quality information:
| At and for the three months ended | |||||||||||||||||
| December 31, 2020 | September 30, 2020 | December 31, 2019 | |||||||||||||||
| Allowance for loan credit losses | $ | 86,670 | $ | 81,643 | $ | 37,520 | |||||||||||
| Classified loans | 107,781 | 100,859 | 65,117 | ||||||||||||||
| Total nonperforming LHFI | 26,149 | 30,228 | 31,146 | ||||||||||||||
| Provision expense | 6,333 | 13,633 | 2,377 | ||||||||||||||
| Net charge-offs | 1,757 | 1,795 | 2,773 | ||||||||||||||
| Credit quality ratios: | |||||||||||||||||
| Allowance for loan credit losses to nonperforming LHFI | 331.45 | % | 270.09 | % | 120.46 | % | |||||||||||
| Allowance for loan credit losses to total LHFI | 1.51 | 1.45 | 0.91 | ||||||||||||||
Allowance for loan credit losses to total LHFI excluding PPP and warehouse loans (1) | 2.10 | 2.00 | 0.96 | ||||||||||||||
| Nonperforming LHFI to LHFI | 0.46 | 0.54 | 0.75 | ||||||||||||||
| Net charge-offs to total average LHFI (annualized) | 0.13 | 0.13 | 0.26 | ||||||||||||||
____________________________
(1)Please see the Loan Data schedule at the back of this document for additional information.
The decrease in provision expense compared to the linked quarter reflects an improvement in forecasted economic conditions. While we are seeing some improvements in economic forecasts, there remains a heightened level of uncertainty, particularly related to the first half of 2021, regarding the economic impact of increasing COVID-19 cases and the deployment of a vaccine. The increase from December 31, 2019, was primarily due to the decline in overall economic conditions as a result of the aforementioned uncertainty resulting from the pandemic and the change in accounting methods from incurred loss to expected loss under the implementation of Accounting Standards Update ("ASU") No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ("CECL").
2
The Company continues to closely monitor those industry sectors that could experience a more protracted recovery from the current economic downturn, specifically the sectors of hotels, energy, non-essential retail, restaurants, and assisted living. Excluding PPP loans, at December 31, 2020, the Company had $538.6 million, or 10.4%, of its LHFI invested in these sectors and, while the Company has increased its allowance for loan credit losses related to these sectors, the allowance is a current estimate and may be subject to change. Nonperforming LHFI in these sectors were $5.9 million at December 31, 2020, while past due LHFI, defined as loans 30 days or more past due, as a percentage of LHFI in these sectors, excluding PPP loans, was 1.0% at December 31, 2020. Loans in COVID-19 related forbearance totaled $97.7 million and represented 1.9% of LHFI, excluding PPP loans, at December 31, 2020. For more information on Origin’s COVID-19 impacted sectors, please see the Investor Presentation furnished to the SEC on January 27, 2021, and on Origin's website at www.origin.bank under the Investor Relations, News & Events, Events & Presentations link.
The estimated impact and uncertain outcome of the COVID-19 pandemic led to an increase in classified assets as well as an increase in the allowance for loan credit losses. Classified loans as a percentage of LHFI, excluding PPP loans, and as a percentage of total risk-based capital (at the Origin Bancorp, Inc. level) were 2.08% and 12.88%, respectively, at December 31, 2020, reflecting an increase from 1.57% and 10.67%, respectively, at December 31, 2019.
Results of Operations for the Three Months Ended December 31, 2020
Net Interest Income and Net Interest Margin
Net interest income for the quarter ended December 31, 2020, was $51.8 million, an increase of $1.2 million, or 2.4%, compared to the linked quarter. The increase was primarily due to a $1.5 million increase in income from mortgage warehouse lines of credit coupled with a $1.1 million reduction in total interest-bearing deposit expenses, offset by a $1.4 million decrease in interest earned on commercial and industrial loans and a $761,000 increase in subordinated debenture interest expense during the current quarter compared to the linked quarter.
Interest income on mortgage warehouse lines of credit increased by $1.5 million during the quarter ended December 31, 2020, compared to the linked quarter due to higher mortgage activity driven by the continued low interest rate environment, coupled with additional mortgage warehouse clients being onboarded and funding loans during 2020. Interest income earned on commercial and industrial loans, excluding PPP loans, decreased by $1.4 million during the quarter ended December 31, 2020, compared to the linked quarter due to a combination of the impact of lower interest rates and lower average balances, which contributed $883,000 and $478,000, respectively, to the decrease.
Interest-bearing deposit expense was $4.6 million during the current quarter, compared to $5.7 million for the quarter ended September 30, 2020, primarily due to a reduction in deposit rates. The average rate on savings and interest-bearing transaction accounts was 0.29% for the current quarter, down from 0.39% for the linked quarter, accounting for $900,000 of the decrease in interest expense from the linked quarter. The average rate on time deposits decreased to 1.20% for the current quarter, down from 1.50% for the linked quarter, providing an additional decrease of $511,000 in interest expense. These two interest expense declines were offset by a $496,000 increase in interest expense due to an increase in the average balances of savings and interest-bearing transaction accounts when comparing the December 31, 2020, quarter to the linked quarter.
The fully tax-equivalent net interest margin ("NIM") was 3.07% for the current quarter, an 11 basis point decrease from the linked quarter and a 51 basis point decrease from the quarter ended December 31, 2019. Excluding PPP loans, the fully tax-equivalent NIM was 3.17%, also an 11 basis point decrease from the linked quarter. The yield earned on interest-earning assets was 3.47%, a 17 basis point and a 109 basis point decrease compared to the linked quarter and the quarter ended December 31, 2019, respectively. Excluding PPP loans, the yield earned on interest-earning assets was 3.57%, an 18 basis point decrease compared to the linked quarter. The rate paid on total interest-bearing liabilities for the quarter ended December 31, 2020, was 0.64%, representing a decrease of 11 basis points and 82 basis points compared to the linked quarter and the quarter ended December 31, 2019, respectively. The Company has experienced margin compression since the quarter ended December 31, 2019, primarily caused by decreasing loan yields driven by declining short-term interest rates over the last several quarters.
Noninterest Income
Noninterest income for the quarter ended December 31, 2020, was $15.4 million, a decrease of $2.7 million, or 14.8%, from the linked quarter. The decrease from the linked quarter was primarily driven by a decrease of $2.9 million in mortgage banking revenue.
3
Mortgage banking revenue decreased primarily due to a $1.6 million decrease in volume-related gains and income and a $1.3 million decrease in hedge effectiveness. Mortgage servicing revenue hedge performance was lower during the quarter ended December 31, 2020, compared to the linked quarter, with only $68,000 net hedge effectiveness during the quarter ended December 31, 2020, compared to $1.4 million in net hedge effectiveness during the quarter ended September 30, 2020. Mortgage banking revenue increased $3.2 million, or 96.3%, from the quarter ended December 31, 2019.
Noninterest Expense
Noninterest expense for the quarter ended December 31, 2020, was $38.9 million, a slight increase of $150,000, compared to the linked quarter. The increase from the linked quarter was largely driven by an increase of $391,000 in professional services expense, which was offset by a decrease of $213,000 in other noninterest expense.
The increase in professional services expense was primarily driven by fees paid to a loan sale advisor who assisted in the sale of a performing loan during the quarter.
The decrease in other noninterest expense was largely due to a litigation accrual of $475,000 that was recorded during the quarter ended September 30, 2020, not recurring in the current quarter.
Financial Condition
Loans
•Total LHFI increased $112.1 million compared to the linked quarter and $1.58 billion compared to December 31, 2019.
•PPP loans, net of deferred fees and costs, totaled $546.5 million at December 31, 2020, and decreased $5.8 million compared to the linked quarter.
•Average LHFI increased $164.0 million, compared to the linked quarter, and $1.29 billion compared to December 31, 2019.
Total LHFI at December 31, 2020, were $5.72 billion, reflecting an increase of 2.0% compared to the linked quarter and an increase of 38.2%, compared to December 31, 2019. The increase in LHFI was primarily driven by an increase in mortgage warehouse lines of credit and PPP loans when compared to December 31, 2019. Mortgage warehouse lines of credit increased by $809.3 million primarily due to increased mortgage activity driven by the continued low interest rate environment, coupled with additional mortgage warehouse clients being onboarded and funding loans during 2020.
Deposits
•Total deposits decreased $184.6 million compared to the linked quarter and increased $1.52 billion compared to December 31, 2019.
•Business depositors drove an increase of $691.0 million compared to the quarter ended December 31, 2019.
•Average brokered deposits for the quarter ended December 31, 2020, increased by $344.2 million over the linked quarter and $489.6 million over the quarter ended December 31, 2019. Brokered deposits at December 31, 2020, decreased by $404.7 million compared to the linked quarter and increased $278.6 million compared to December 31, 2019.
•Average total deposits for the quarter ended December 31, 2020, increased by $508.7 million over the linked quarter and $1.68 billion over the quarter ended December 31, 2019.
Total deposits at December 31, 2020, were $5.75 billion, reflecting a decrease of 3.1% compared to the linked quarter and an increase of 36.0% compared to December 31, 2019. Brokered deposits declined by $404.7 million, offset by increases in interest-bearing demand and money market deposits of $145.7 million and $88.6 million, respectively, compared to the linked quarter. The Company has used noncore funding sources, including brokered deposits, to support the increase in mortgage warehouse lines of credit during 2020. In December 2020, due to changing rates on noncore funding options, the Company shifted some noncore funding from brokered deposits to FHLB advances, which has caused a decline in brokered deposit balances at December 31, 2020, when compared to September 30, 2020. Also, the Company was able to increase other deposits which contributed to the reduction in brokered deposits at December 31, 2020. Increases of $529.9 million, $512.9 million and $278.6 million in noninterest-bearing, money market and brokered deposits, respectively, drove the increase in total deposits compared to December 31, 2019, partially due to depositors moving into a statistically higher percentage of personal savings rates.
For the quarter ended December 31, 2020, average noninterest-bearing deposits as a percentage of total average deposits was 28.7%, compared to 30.4% for the quarter ended September 30, 2020, and 27.4% for the quarter ended December 31, 2019.
4
Borrowings
•Average FHLB advances and other borrowings for the quarter ended December 31, 2020, decreased by $193.7 million, compared to the quarter ended September 30, 2020, and decreased by $3.0 million over the quarter ended December 31, 2019.
•Average subordinated debentures increased $65.9 million for the quarter ended December 31, 2020, compared to the linked quarter and $134.8 million compared to the quarter ended December 31, 2019.
Average FHLB advances and other borrowings decreased 36.4% for the quarter ended December 31, 2020, compared to the quarter ended September 30, 2020, and decreased 0.9% compared to the quarter ended December 31, 2019. During the quarter ended September 30, 2020, the Company repaid $319.3 million of advances under the Federal Reserve's PPP Lending Facility which caused a decrease in average borrowings of $209.3 million during the quarter ended December 31, 2020.
In October 2020, the Company completed of an offering of $80.0 million in aggregate principal amount of 4.50% fixed-to floating rate subordinated notes due 2030. Additionally, in February 2020, Origin Bank completed an offering of $70.0 million in aggregate principal amount of 4.25% fixed-to-floating rate subordinated notes due 2030.
Stockholders' equity was $647.2 million at December 31, 2020, an increase of $19.5 million compared to $627.6 million at September 30, 2020, and an increase of $47.9 million compared to $599.3 million at December 31, 2019. The increase from the linked quarter was primarily due to net income for the quarter of $17.6 million. The increase from the December 31, 2019, quarter was primarily caused by retained earnings and other comprehensive income during the intervening period.
Conference Call
Origin will hold a conference call to discuss its fourth quarter and 2020 full year results on Thursday, January 28, 2021, at 8:00 a.m. Central Time (9:00 a.m. Eastern Time). To participate in the live conference call, please dial (844) 695-5516; International: (412) 902-6750 and request to be joined into the Origin Bancorp, Inc. (OBNK) call. A simultaneous audio-only webcast may be accessed via Origin's website at www.origin.bank under the Investor Relations, News & Events, Events & Presentations link or directly by visiting https://services.choruscall.com/links/obnk210128.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 headquartered in Ruston, Louisiana. Origin's wholly owned bank subsidiary, Origin Bank, was founded in 1912. Deeply rooted in Origin's history is a culture committed to providing personalized, relationship banking to its clients and communities. Origin provides a broad range of financial services to businesses, municipalities, high net-worth individuals and retail clients. Origin currently operates 44 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.
5
Forward-Looking Statements
This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include information regarding Origin's future financial performance, business and growth strategy, projected plans and objectives, including the Company’s loan loss reserves and allowance for credit losses related to the COVID-19 pandemic and any expected purchases of its outstanding common stock, and related transactions and other projections based on macroeconomic and industry trends, including expectations regarding efforts to respond to the COVID-19 pandemic and continued low interest rates or interest rate cuts by the Federal Reserve and the resulting impact on Origin's results of operations, estimated forbearance amounts and expectations regarding the Company's liquidity, including in connection with advances obtained from the FHLB, which are all subject to change and may be inherently unreliable due to the multiple factors that impact broader economic and industry trends, and any such changes may be material. Such forward-looking statements are based on various facts and derived utilizing important assumptions and current expectations, estimates and projections about Origin and its subsidiaries, any of which may change over time and some of which may be beyond Origin's control. Statements or statistics preceded by, followed by or that otherwise include the words "anticipates," "believes," "estimates," "expects," “foresees,” "intends," "plans," "projects," and similar expressions or future or conditional verbs such as "could," "may," “might,” "should," "will," and "would" or variations of such terms are generally forward-looking in nature and not historical facts, although not all forward-looking statements include the foregoing words. Further, certain factors that could affect Origin's future results and cause actual results to differ materially from those expressed in the forward-looking statements include, but are not limited to: the continuing duration and impacts of the COVID-19 global pandemic and continuing development and distribution of COVID-19 vaccines, as well as other efforts to contain the virus's transmission, including the effect of these factors and developments on Origin’s business, customers and economic conditions generally, as well as the impact of the actions taken by governmental authorities to address the impact of COVID-19 on the United States economy, including, without limitation, the Coronavirus Aid, Relief and Economic Security Act (the “CARES Act”) and any related future economic stimulus legislation; deterioration of Origin's asset quality; factors that can impact the performance of Origin’s loan portfolio, including real estate values and liquidity in Origin's primary market areas; the financial health of Origin's commercial borrowers and the success of construction projects that Origin finances; changes in the value of collateral securing Origin's loans; Origin’s ability to anticipate interest rate changes and manage interest rate risk; the effectiveness of Origin’s risk management framework and quantitative models; Origin’s inability to receive dividends from Origin Bank and to service debt, pay dividends to Origin’s common stockholders, repurchase Origin’s shares of common stock and satisfy obligations as they become due; business and economic conditions generally and in the financial services industry, nationally and within Origin's primary market areas; changes in Origin’s operation or expansion strategy or Origin's ability to prudently manage its growth and execute its strategy; changes in management personnel; Origin's ability to maintain important customer relationships, reputation or otherwise avoid liquidity risks; increasing costs as Origin grows deposits; operational risks associated with Origin’s business; volatility and direction of market interest rates; 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; an increase in unemployment levels and slowdowns in economic growth; Origin's level of nonperforming assets and the costs associated with resolving any problem loans including litigation and other costs; the credit risk associated with the substantial amount of commercial real estate, construction and land development, and commercial loans in Origin's loan portfolio; changes in the laws, rules, regulations, interpretations or policies relating to financial institutions, and potential expenses associated with complying with such regulations, periodic changes to the extensive body of accounting rules and best practices; further government intervention in the U.S. financial system; compliance with governmental and regulatory requirements, including the Dodd-Frank Wall Street Reform and Consumer Protection Act and others relating to banking, consumer protection, securities and tax matters; Origin's ability to comply with applicable capital and liquidity requirements, including its ability to generate liquidity internally or raise capital on favorable terms, including continued access to the debt and equity capital markets; changes in the utility of Origin's non-GAAP liquidity measurements and its underlying assumptions or estimates; uncertainty regarding the future of the London Interbank Offered Rate and the impact of any replacement alternatives on Origin’s business; possible changes in trade, monetary and fiscal policies, laws and regulations and other activities of governments, agencies and similar organizations; natural disasters and adverse weather events, acts of terrorism, an outbreak of hostilities, regional or national protests and civil unrest (including any resulting branch closures or property damage), widespread illness or public health outbreaks or other international or domestic calamities, and other matters beyond Origin’s control; and system failures, cybersecurity threats or security breaches and the cost of defending against them. For a discussion of these and other risks that may cause actual results to differ from expectations, please refer to the sections titled "Cautionary Note Regarding Forward-Looking Statements" and "Risk Factors" in Origin's most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission and any updates to those sections set forth in Origin's subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. If one or more events related to these or other risks or uncertainties materialize, or if Origin's underlying assumptions prove to be incorrect, actual results may differ materially from what Origin anticipates. Accordingly, you should not place undue reliance on any forward-looking statements. Any forward-looking
6
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. Furthermore, many of these risks and uncertainties are currently amplified by and may continue to be amplified by or may, in the future, be amplified by, the outbreak of the COVID-19 pandemic and the impact of varying governmental responses, including the CARES Act, that affect Origin's customers and the economies where they operate. All forward-looking statements, expressed or implied, included in this communication are expressly qualified in their entirety by this cautionary statement. This cautionary statement should also be considered in connection with any subsequent written or oral forward-looking statements that Origin or persons acting on Origin's behalf may issue. Annualized, pro forma, adjusted, projected and estimated numbers are used for illustrative purpose only, are not forecasts and may not reflect actual results.
Contact:
Chris Reigelman, Origin Bancorp, Inc.
318-497-3177 / chris@origin.bank
7
Origin Bancorp, Inc.
Selected Quarterly Financial Data
| At and for the three months ended | |||||||||||||||||||||||||||||
| December 31, 2020 | September 30, 2020 | June 30, 2020 | March 31, 2020 | December 31, 2019 | |||||||||||||||||||||||||
| Income statement and share amounts | (Dollars in thousands, except per share amounts, unaudited) | ||||||||||||||||||||||||||||
Net interest income | $ | 51,819 | $ | 50,617 | $ | 46,290 | $ | 42,810 | $ | 44,095 | |||||||||||||||||||
Provision for credit losses | 6,333 | 13,633 | 21,403 | 18,531 | 2,377 | ||||||||||||||||||||||||
Noninterest income | 15,381 | 18,051 | 19,076 | 12,144 | 10,818 | ||||||||||||||||||||||||
| Noninterest expense | 38,884 | 38,734 | 38,220 | 36,097 | 36,534 | ||||||||||||||||||||||||
Income before income tax expense | 21,983 | 16,301 | 5,743 | 326 | 16,002 | ||||||||||||||||||||||||
Income tax (benefit) expense | 4,431 | 3,206 | 786 | (427) | 3,175 | ||||||||||||||||||||||||
Net income | $ | 17,552 | $ | 13,095 | $ | 4,957 | $ | 753 | $ | 12,827 | |||||||||||||||||||
Pre-tax, pre-provision ("PTPP") earnings (1) | $ | 28,316 | $ | 29,934 | $ | 27,146 | $ | 18,857 | $ | 18,379 | |||||||||||||||||||
Basic earnings per common share | 0.75 | 0.56 | 0.21 | 0.03 | 0.55 | ||||||||||||||||||||||||
Diluted earnings per common share | 0.75 | 0.56 | 0.21 | 0.03 | 0.55 | ||||||||||||||||||||||||
| Dividends declared per common share | 0.10 | 0.0925 | 0.0925 | 0.0925 | 0.0925 | ||||||||||||||||||||||||
Weighted average common shares outstanding - basic | 23,392,684 | 23,374,496 | 23,347,744 | 23,353,601 | 23,323,292 | ||||||||||||||||||||||||
Weighted average common shares outstanding - diluted | 23,543,917 | 23,500,596 | 23,466,326 | 23,530,212 | 23,529,862 | ||||||||||||||||||||||||
Balance sheet data | |||||||||||||||||||||||||||||
Total LHFI | $ | 5,724,773 | $ | 5,612,666 | $ | 5,312,194 | $ | 4,481,185 | $ | 4,143,195 | |||||||||||||||||||
Total assets | 7,628,268 | 7,101,338 | 6,643,909 | 6,049,638 | 5,324,626 | ||||||||||||||||||||||||
| Total deposits | 5,751,315 | 5,935,925 | 5,372,222 | 4,556,246 | 4,228,612 | ||||||||||||||||||||||||
Total stockholders' equity | 647,150 | 627,637 | 614,781 | 606,631 | 599,262 | ||||||||||||||||||||||||
| Performance metrics and capital ratios | |||||||||||||||||||||||||||||
| Yield on LHFI | 3.89 | % | 4.02 | % | 4.09 | % | 4.85 | % | 4.95 | % | |||||||||||||||||||
| Yield on interest earnings assets | 3.47 | 3.64 | 3.65 | 4.37 | 4.56 | ||||||||||||||||||||||||
| Cost of interest bearing deposits | 0.43 | 0.61 | 0.79 | 1.28 | 1.44 | ||||||||||||||||||||||||
| Cost of total deposits | 0.31 | 0.42 | 0.54 | 0.95 | 1.04 | ||||||||||||||||||||||||
| Net interest margin, fully tax equivalent | 3.07 | 3.18 | 3.09 | 3.44 | 3.58 | ||||||||||||||||||||||||
Net interest margin, excluding PPP loans, fully tax equivalent (2) | 3.17 | 3.28 | 3.15 | N/A | N/A | ||||||||||||||||||||||||
| Return on average stockholders' equity (annualized) | 10.92 | 8.28 | 3.23 | 0.50 | 8.51 | ||||||||||||||||||||||||
| Return on average assets (annualized) | 0.97 | 0.77 | 0.31 | 0.06 | 0.97 | ||||||||||||||||||||||||
PTPP return on average stockholders' equity (annualized) (1) | 17.61 | 18.92 | 17.67 | 12.41 | 12.19 | ||||||||||||||||||||||||
PTPP return on average assets (annualized) (1) | 1.57 | 1.77 | 1.69 | 1.40 | 1.38 | ||||||||||||||||||||||||
Efficiency ratio (3) | 57.86 | 56.41 | 58.47 | 65.69 | 66.53 | ||||||||||||||||||||||||
| Book value per common share | $ | 27.53 | $ | 26.70 | $ | 26.16 | $ | 25.84 | $ | 25.52 | |||||||||||||||||||
Tangible book value per common share (1) | 26.23 | 25.39 | 24.84 | 24.51 | 24.18 | ||||||||||||||||||||||||
Common equity tier 1 to risk-weighted assets (4) | 9.96 | % | 9.93 | % | 10.35 | % | 10.86 | % | 11.74 | % | |||||||||||||||||||
Tier 1 capital to risk-weighted assets (4) | 10.12 | 10.09 | 10.52 | 11.04 | 11.94 | ||||||||||||||||||||||||
Total capital to risk-weighted assets (4) | 13.80 | 12.48 | 12.91 | 13.38 | 12.76 | ||||||||||||||||||||||||
Tier 1 leverage ratio (4) | 8.62 | 9.19 | 9.10 | 10.71 | 10.91 | ||||||||||||||||||||||||
____________________________
(1)PTPP earnings, PTPP return on average stockholders' equity, PTPP return on average assets 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, please see page 15.
(2)Net interest margin, excluding PPP loans, fully tax equivalent is calculated by removing average PPP loans from average interest earning assets, and removing the associated interest income (net of 35 basis points assumed cost of funds on average PPP loan balances) from net interest income.
(3)Calculated by dividing noninterest expense by the sum of net interest income plus noninterest income.
(4)December 31, 2020, ratios are estimated and calculated at the Company level, which is subject to the capital adequacy requirements of the Federal Reserve Board.
8
Origin Bancorp, Inc.
Consolidated Quarterly Statements of Income
| Three months ended | |||||||||||||||||||||||||||||
| December 31, 2020 | September 30, 2020 | June 30, 2020 | March 31, 2020 | December 31, 2019 | |||||||||||||||||||||||||
| Interest and dividend income | (Dollars in thousands, except per share amounts, unaudited) | ||||||||||||||||||||||||||||
| Interest and fees on loans | $ | 54,193 | $ | 54,150 | $ | 50,722 | $ | 50,049 | $ | 52,331 | |||||||||||||||||||
| Investment securities-taxable | 3,154 | 2,704 | 2,732 | 2,712 | 2,640 | ||||||||||||||||||||||||
| Investment securities-nontaxable | 1,708 | 1,571 | 1,391 | 758 | 772 | ||||||||||||||||||||||||
| Interest and dividend income on assets held in other financial institutions | 367 | 375 | 619 | 1,497 | 976 | ||||||||||||||||||||||||
| Total interest and dividend income | 59,422 | 58,800 | 55,464 | 55,016 | 56,719 | ||||||||||||||||||||||||
| Interest expense | |||||||||||||||||||||||||||||
| Interest-bearing deposits | 4,582 | 5,698 | 6,620 | 10,250 | 11,056 | ||||||||||||||||||||||||
| FHLB advances and other borrowings | 1,339 | 1,564 | 1,641 | 1,351 | 1,428 | ||||||||||||||||||||||||
| Junior subordinated debentures | 1,682 | 921 | 913 | 605 | 140 | ||||||||||||||||||||||||
| Total interest expense | 7,603 | 8,183 | 9,174 | 12,206 | 12,624 | ||||||||||||||||||||||||
Net interest income | 51,819 | 50,617 | 46,290 | 42,810 | 44,095 | ||||||||||||||||||||||||
| Provision for credit losses | 6,333 | 13,633 | 21,403 | 18,531 | 2,377 | ||||||||||||||||||||||||
| Net interest income after provision for credit losses | 45,486 | 36,984 | 24,887 | 24,279 | 41,718 | ||||||||||||||||||||||||
| Noninterest income | |||||||||||||||||||||||||||||
| Service charges and fees | 3,420 | 3,268 | 2,990 | 3,320 | 3,488 | ||||||||||||||||||||||||
| Mortgage banking revenue | 6,594 | 9,523 | 10,717 | 2,769 | 3,359 | ||||||||||||||||||||||||
| Insurance commission and fee income | 2,732 | 3,218 | 3,109 | 3,687 | 2,428 | ||||||||||||||||||||||||
| Gain on sales of securities, net | 225 | 301 | — | 54 | — | ||||||||||||||||||||||||
| (Loss) on sales and disposals of other assets, net | (33) | (247) | (908) | (25) | (38) | ||||||||||||||||||||||||
| Limited partnership investment income (loss) | 368 | 130 | 9 | (429) | (267) | ||||||||||||||||||||||||
| Swap fee income | 233 | 110 | 1,527 | 676 | 151 | ||||||||||||||||||||||||
| Other fee income | 604 | 576 | 607 | 466 | 440 | ||||||||||||||||||||||||
| Other income | 1,238 | 1,172 | 1,025 | 1,626 | 1,257 | ||||||||||||||||||||||||
| Total noninterest income | 15,381 | 18,051 | 19,076 | 12,144 | 10,818 | ||||||||||||||||||||||||
| Noninterest expense | |||||||||||||||||||||||||||||
| Salaries and employee benefits | 22,475 | 22,597 | 24,045 | 21,988 | 22,074 | ||||||||||||||||||||||||
| Occupancy and equipment, net | 4,271 | 4,263 | 4,267 | 4,221 | 4,241 | ||||||||||||||||||||||||
| Data processing | 2,178 | 2,065 | 2,075 | 2,003 | 1,801 | ||||||||||||||||||||||||
| Electronic banking | 942 | 954 | 890 | 900 | 936 | ||||||||||||||||||||||||
| Communications | 449 | 422 | 419 | 477 | 454 | ||||||||||||||||||||||||
| Advertising and marketing | 1,108 | 1,281 | 610 | 711 | 991 | ||||||||||||||||||||||||
| Professional services | 1,176 | 785 | 843 | 1,171 | 878 | ||||||||||||||||||||||||
| Regulatory assessments | 1,135 | 1,310 | 766 | 615 | 679 | ||||||||||||||||||||||||
| Loan related expenses | 1,856 | 1,809 | 1,509 | 1,142 | 1,400 | ||||||||||||||||||||||||
| Office and operations | 1,472 | 1,367 | 1,344 | 1,441 | 1,632 | ||||||||||||||||||||||||
| Intangible asset amortization | 237 | 237 | 287 | 299 | 302 | ||||||||||||||||||||||||
| Franchise tax expense | 665 | 511 | 514 | 496 | 496 | ||||||||||||||||||||||||
| Other expenses | 920 | 1,133 | 651 | 633 | 650 | ||||||||||||||||||||||||
| Total noninterest expense | 38,884 | 38,734 | 38,220 | 36,097 | 36,534 | ||||||||||||||||||||||||
| Income before income tax expense | 21,983 | 16,301 | 5,743 | 326 | 16,002 | ||||||||||||||||||||||||
| Income tax expense (benefit) | 4,431 | 3,206 | 786 | (427) | 3,175 | ||||||||||||||||||||||||
| Net income | $ | 17,552 | $ | 13,095 | $ | 4,957 | $ | 753 | $ | 12,827 | |||||||||||||||||||
| Basic earnings per common share | $ | 0.75 | $ | 0.56 | $ | 0.21 | $ | 0.03 | $ | 0.55 | |||||||||||||||||||
| Diluted earnings per common share | 0.75 | 0.56 | 0.21 | 0.03 | 0.55 | ||||||||||||||||||||||||
9
Origin Bancorp, Inc.
Selected Annual Financial Data
| Year Ended December 31, | |||||||||||
| (Dollars in thousands, except per share amounts) | 2020 | 2019 | |||||||||
| Income statement and share amounts | (Unaudited) | ||||||||||
Net interest income | $ | 191,536 | $ | 173,712 | |||||||
| Provision for credit losses | 59,900 | 9,568 | |||||||||
Noninterest income | 64,652 | 46,478 | |||||||||
| Noninterest expense | 151,935 | 144,074 | |||||||||
Income before income tax expense | 44,353 | 66,548 | |||||||||
Income tax expense | 7,996 | 12,666 | |||||||||
Net income | $ | 36,357 | $ | 53,882 | |||||||
PTPP earnings (1) | $ | 104,253 | $ | 76,116 | |||||||
Basic earnings per common share (2) | 1.56 | 2.30 | |||||||||
Diluted earnings per common share(2) | 1.55 | 2.28 | |||||||||
| Dividends declared per common share | 0.3775 | 0.25 | |||||||||
Weighted average common shares outstanding - basic | 23,367,221 | 23,470,746 | |||||||||
Weighted average common shares outstanding - diluted | 23,511,952 | 23,674,065 | |||||||||
| Performance metrics | |||||||||||
| Yield on LHFI | 4.17 | % | 5.18 | % | |||||||
| Yield on interest earning assets | 3.75 | 4.77 | |||||||||
| Cost of interest bearing deposits | 0.75 | 1.53 | |||||||||
| Cost of total deposits | 0.53 | 1.12 | |||||||||
| Net interest margin, fully tax equivalent | 3.18 | 3.69 | |||||||||
Net interest margin, excluding PPP loans, fully tax equivalent (3) | 3.25 | N/A | |||||||||
| Return on average stockholders' equity | 5.82 | 9.27 | |||||||||
| Return on average assets | 0.56 | 1.06 | |||||||||
PTPP return on average stockholders' equity (1) | 16.69 | 13.10 | |||||||||
PTPP return on average assets (1) | 1.62 | 1.49 | |||||||||
Efficiency ratio (4) | 59.31 | 65.43 | |||||||||
____________________________
(1)PTPP earnings, PTPP return on average stockholders' equity, and PTPP return on average assets are non-GAAP financial measures. For a reconciliation of these non-GAAP financial measures to their comparable GAAP measures, please see page 15.
(2)Due to the combined impact of the repurchase of common stock on the quarterly average common shares outstanding calculation compared to the impact of the repurchase of common stock shares on the year-to-date average common outstanding calculation, and the effect of rounding, the sum of the quarterly earnings per common share may not equal the year-to-date earnings per common share amount.
(3)Net interest margin, excluding PPP loans, fully tax equivalent is calculated by removing average PPP loans from average interest earning assets, and removing the associated interest income (net of 35 basis points assumed cost of funds on average PPP loan balances) from net interest income.
(4)Calculated by dividing noninterest expense by the sum of net interest income plus noninterest income.
10
Origin Bancorp, Inc.
Consolidated Balance Sheets
| (Dollars in thousands) | December 31, 2020 | September 30, 2020 | June 30, 2020 | March 31, 2020 | December 31, 2019 | ||||||||||||||||||||||||
| Assets | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||||||||||||||||||||||
| Cash and due from banks | $ | 60,544 | $ | 61,250 | $ | 57,054 | $ | 91,104 | $ | 62,160 | |||||||||||||||||||
| Interest-bearing deposits in banks | 316,670 | 160,661 | 99,282 | 469,075 | 229,358 | ||||||||||||||||||||||||
| Total cash and cash equivalents | 377,214 | 221,911 | 156,336 | 560,179 | 291,518 | ||||||||||||||||||||||||
| Securities: | |||||||||||||||||||||||||||||
| Available for sale | 1,004,674 | 797,260 | 720,616 | 601,637 | 501,070 | ||||||||||||||||||||||||
| Held to maturity, net of allowance for credit losses | 38,128 | 38,193 | 38,287 | 28,383 | 28,620 | ||||||||||||||||||||||||
| Securities carried at fair value through income | 11,554 | 11,813 | 11,977 | 12,242 | 11,513 | ||||||||||||||||||||||||
| Total securities | 1,054,356 | 847,266 | 770,880 | 642,262 | 541,203 | ||||||||||||||||||||||||
| Non-marketable equity securities held in other financial institutions | 62,586 | 38,052 | 41,864 | 52,267 | 39,808 | ||||||||||||||||||||||||
| Loans held for sale | 191,512 | 155,525 | 121,541 | 75,322 | 64,837 | ||||||||||||||||||||||||
| Loans | 5,724,773 | 5,612,666 | 5,312,194 | 4,481,185 | 4,143,195 | ||||||||||||||||||||||||
| Less: allowance for loan credit losses | 86,670 | 81,643 | 70,468 | 56,063 | 37,520 | ||||||||||||||||||||||||
| Loans, net of allowance for loan credit losses | 5,638,103 | 5,531,023 | 5,241,726 | 4,425,122 | 4,105,675 | ||||||||||||||||||||||||
| Premises and equipment, net | 81,763 | 79,254 | 80,025 | 80,193 | 80,457 | ||||||||||||||||||||||||
| Mortgage servicing rights | 13,660 | 14,322 | 15,235 | 16,122 | 20,697 | ||||||||||||||||||||||||
| Cash surrender value of bank-owned life insurance | 37,553 | 37,332 | 37,102 | 36,874 | 37,961 | ||||||||||||||||||||||||
| Goodwill and other intangible assets, net | 30,480 | 30,717 | 30,953 | 31,241 | 31,540 | ||||||||||||||||||||||||
| Accrued interest receivable and other assets | 141,041 | 145,936 | 148,247 | 130,056 | 110,930 | ||||||||||||||||||||||||
| Total assets | $ | 7,628,268 | $ | 7,101,338 | $ | 6,643,909 | $ | 6,049,638 | $ | 5,324,626 | |||||||||||||||||||
| Liabilities and Stockholders' Equity | |||||||||||||||||||||||||||||
| Noninterest-bearing deposits | $ | 1,607,564 | $ | 1,599,436 | $ | 1,584,746 | $ | 1,115,811 | $ | 1,077,706 | |||||||||||||||||||
| Interest-bearing deposits | 3,478,985 | 3,640,587 | 3,041,859 | 2,673,881 | 2,360,096 | ||||||||||||||||||||||||
| Time deposits | 664,766 | 695,902 | 745,617 | 766,554 | 790,810 | ||||||||||||||||||||||||
| Total deposits | 5,751,315 | 5,935,925 | 5,372,222 | 4,556,246 | 4,228,612 | ||||||||||||||||||||||||
| FHLB advances and other borrowings | 984,608 | 360,325 | 478,260 | 716,909 | 417,190 | ||||||||||||||||||||||||
| Subordinated debentures | 157,181 | 78,596 | 78,567 | 78,539 | 9,671 | ||||||||||||||||||||||||
| Accrued expenses and other liabilities | 88,014 | 98,855 | 100,079 | 91,313 | 69,891 | ||||||||||||||||||||||||
| Total liabilities | 6,981,118 | 6,473,701 | 6,029,128 | 5,443,007 | 4,725,364 | ||||||||||||||||||||||||
| Stockholders' equity | |||||||||||||||||||||||||||||
Common stock | 117,532 | 117,533 | 117,506 | 117,380 | 117,405 | ||||||||||||||||||||||||
| Additional paid-in capital | 237,341 | 236,679 | 236,156 | 235,709 | 235,623 | ||||||||||||||||||||||||
| Retained earnings | 266,628 | 251,427 | 240,506 | 237,720 | 239,901 | ||||||||||||||||||||||||
| Accumulated other comprehensive income | 25,649 | 21,998 | 20,613 | 15,822 | 6,333 | ||||||||||||||||||||||||
| Total stockholders' equity | 647,150 | 627,637 | 614,781 | 606,631 | 599,262 | ||||||||||||||||||||||||
| Total liabilities and stockholders' equity | $ | 7,628,268 | $ | 7,101,338 | $ | 6,643,909 | $ | 6,049,638 | $ | 5,324,626 | |||||||||||||||||||
11
Origin Bancorp, Inc.
Loan Data
| At and for the three months ended | |||||||||||||||||||||||||||||
| (Dollars in thousands, unaudited) | December 31, 2020 | September 30, 2020 | June 30, 2020 | March 31, 2020 | December 31, 2019 | ||||||||||||||||||||||||
| LHFI | |||||||||||||||||||||||||||||
| Commercial real estate | $ | 1,387,939 | $ | 1,367,916 | $ | 1,323,754 | $ | 1,302,520 | $ | 1,296,847 | |||||||||||||||||||
| Construction/land/land development | 531,860 | 560,857 | 570,032 | 563,820 | 517,688 | ||||||||||||||||||||||||
| Residential real estate | 885,120 | 832,055 | 769,354 | 703,263 | 689,555 | ||||||||||||||||||||||||
| Total real estate loans | 2,804,919 | 2,760,828 | 2,663,140 | 2,569,603 | 2,504,090 | ||||||||||||||||||||||||
| Paycheck Protection Program | 546,519 | 552,329 | 549,129 | — | — | ||||||||||||||||||||||||
| Commercial and industrial | 1,271,343 | 1,263,279 | 1,313,405 | 1,455,497 | 1,343,475 | ||||||||||||||||||||||||
| Mortgage warehouse lines of credit | 1,084,001 | 1,017,501 | 769,157 | 437,257 | 274,659 | ||||||||||||||||||||||||
| Consumer | 17,991 | 18,729 | 17,363 | 18,828 | 20,971 | ||||||||||||||||||||||||
| Total LHFI | 5,724,773 | 5,612,666 | 5,312,194 | 4,481,185 | 4,143,195 | ||||||||||||||||||||||||
| Less: allowance for loan credit losses | 86,670 | 81,643 | 70,468 | 56,063 | 37,520 | ||||||||||||||||||||||||
| LHFI, net | $ | 5,638,103 | $ | 5,531,023 | $ | 5,241,726 | $ | 4,425,122 | $ | 4,105,675 | |||||||||||||||||||
| Nonperforming assets | |||||||||||||||||||||||||||||
| Nonperforming LHFI | |||||||||||||||||||||||||||||
| Commercial real estate | $ | 3,704 | $ | 4,669 | $ | 4,717 | $ | 11,306 | $ | 6,994 | |||||||||||||||||||
| Construction/land/land development | 2,962 | 2,976 | 3,726 | 3,850 | 4,337 | ||||||||||||||||||||||||
| Residential real estate | 6,530 | 8,259 | 6,713 | 4,076 | 5,132 | ||||||||||||||||||||||||
| Commercial and industrial | 12,897 | 14,255 | 14,772 | 13,619 | 14,520 | ||||||||||||||||||||||||
| Consumer | 56 | 69 | 119 | 181 | 163 | ||||||||||||||||||||||||
| Total nonperforming LHFI | 26,149 | 30,228 | 30,047 | 33,032 | 31,146 | ||||||||||||||||||||||||
| Nonperforming loans held for sale | 681 | 483 | 734 | 840 | 927 | ||||||||||||||||||||||||
| Total nonperforming loans | 26,830 | 30,711 | 30,781 | 33,872 | 32,073 | ||||||||||||||||||||||||
| Repossessed assets | 1,927 | 718 | 4,155 | 5,296 | 4,753 | ||||||||||||||||||||||||
| Total nonperforming assets | $ | 28,757 | $ | 31,429 | $ | 34,936 | $ | 39,168 | $ | 36,826 | |||||||||||||||||||
| Classified assets | $ | 109,708 | $ | 101,577 | $ | 100,299 | $ | 79,980 | $ | 69,870 | |||||||||||||||||||
Past due LHFI (1) | 25,763 | 29,194 | 23,751 | 51,018 | 29,980 | ||||||||||||||||||||||||
| Allowance for loan credit losses | |||||||||||||||||||||||||||||
| Balance at beginning of period | $ | 81,643 | $ | 70,468 | $ | 56,063 | $ | 37,520 | $ | 37,126 | |||||||||||||||||||
| Impact of adopting ASC 326 | — | — | — | 1,248 | — | ||||||||||||||||||||||||
| Provision for loan credit losses | 6,784 | 12,970 | 20,878 | 18,396 | 3,167 | ||||||||||||||||||||||||
| Loans charged off | 2,089 | 2,293 | 6,587 | 1,425 | 3,268 | ||||||||||||||||||||||||
| Loan recoveries | 332 | 498 | 114 | 324 | 495 | ||||||||||||||||||||||||
| Net charge-offs | 1,757 | 1,795 | 6,473 | 1,101 | 2,773 | ||||||||||||||||||||||||
| Balance at end of period | $ | 86,670 | $ | 81,643 | $ | 70,468 | $ | 56,063 | $ | 37,520 | |||||||||||||||||||
12
Origin Bancorp, Inc.
Loan Data - Continued
| At and for the three months ended | |||||||||||||||||||||||||||||
| (Unaudited) | December 31, 2020 | September 30, 2020 | June 30, 2020 | March 31, 2020 | December 31, 2019 | ||||||||||||||||||||||||
| Credit quality ratios | |||||||||||||||||||||||||||||
| Total nonperforming assets to total assets | 0.38 | % | 0.44 | % | 0.53 | % | 0.65 | % | 0.69 | % | |||||||||||||||||||
| Total nonperforming loans to total loans | 0.45 | 0.53 | 0.57 | 0.74 | 0.76 | ||||||||||||||||||||||||
| Nonperforming LHFI to LHFI | 0.46 | 0.54 | 0.57 | 0.74 | 0.75 | ||||||||||||||||||||||||
| Past due LHFI to LHFI | 0.45 | 0.52 | 0.45 | 1.14 | 0.72 | ||||||||||||||||||||||||
| Allowance for loan credit losses to nonperforming LHFI | 331.45 | 270.09 | 234.53 | 169.72 | 120.46 | ||||||||||||||||||||||||
| Allowance for loan credit losses to total LHFI | 1.51 | 1.45 | 1.33 | 1.25 | 0.91 | ||||||||||||||||||||||||
Allowance for loan credit losses to total LHFI excluding PPP and warehouse loans (2) | 2.10 | 2.00 | 1.75 | 1.37 | 0.96 | ||||||||||||||||||||||||
| Net charge-offs to total average LHFI (annualized) | 0.13 | 0.13 | 0.53 | 0.11 | 0.26 | ||||||||||||||||||||||||
____________________________
(1)Past due LHFI are defined as loans 30 days or more past due.
(2)The allowance for loan credit losses ("ACL") to total LHFI excluding PPP and warehouse loans is calculated by excluding the ACL for warehouse loans from the numerator and excluding the PPP and warehouse loans from the denominator. Mortgage warehouse loans increased significantly during the period, but, due to their low-risk profile, require a disproportionately low allocation of the allowance for loan credit losses.
13
Origin Bancorp, Inc.
Average Balances and Yields/Rates
| Three months ended | |||||||||||||||||||||||||||||||||||
| December 31, 2020 | September 30, 2020 | December 31, 2019 | |||||||||||||||||||||||||||||||||
| Average Balance | Yield/Rate | Average Balance | Yield/Rate | Average Balance | Yield/Rate | ||||||||||||||||||||||||||||||
| Assets | (Dollars in thousands, unaudited) | ||||||||||||||||||||||||||||||||||
| Commercial real estate | $ | 1,362,025 | 4.27 | % | $ | 1,344,853 | 4.29 | % | $ | 1,307,023 | 5.03 | % | |||||||||||||||||||||||
| Construction/land/land development | 533,756 | 4.21 | 575,080 | 4.42 | 526,494 | 5.20 | |||||||||||||||||||||||||||||
| Residential real estate | 853,299 | 4.25 | 787,247 | 4.35 | 694,436 | 4.95 | |||||||||||||||||||||||||||||
| Paycheck Protection Program ("PPP") | 551,325 | 2.38 | 550,377 | 2.49 | — | — | |||||||||||||||||||||||||||||
| Commercial and industrial excl. PPP | 1,242,018 | 3.83 | 1,295,105 | 4.09 | 1,356,316 | 4.88 | |||||||||||||||||||||||||||||
| Mortgage warehouse lines of credit | 897,716 | 3.81 | 723,876 | 3.87 | 262,392 | 4.47 | |||||||||||||||||||||||||||||
| Consumer | 18,575 | 6.06 | 18,209 | 6.27 | 20,889 | 6.68 | |||||||||||||||||||||||||||||
| LHFI | 5,458,714 | 3.89 | 5,294,747 | 4.02 | 4,167,550 | 4.95 | |||||||||||||||||||||||||||||
| Loans held for sale | 114,196 | 2.74 | 88,811 | 2.79 | 42,873 | 2.63 | |||||||||||||||||||||||||||||
| Loans receivable | 5,572,910 | 3.87 | 5,383,558 | 4.00 | 4,210,423 | 4.93 | |||||||||||||||||||||||||||||
| Investment securities-taxable | 662,527 | 1.90 | 539,993 | 2.00 | 437,626 | 2.41 | |||||||||||||||||||||||||||||
| Investment securities-nontaxable | 291,702 | 2.34 | 252,304 | 2.49 | 100,705 | 3.07 | |||||||||||||||||||||||||||||
| Non-marketable equity securities held in other financial institutions | 39,763 | 1.99 | 39,229 | 2.53 | 48,669 | 2.88 | |||||||||||||||||||||||||||||
| Interest-bearing balances due from banks | 236,772 | 0.28 | 204,288 | 0.24 | 139,508 | 1.77 | |||||||||||||||||||||||||||||
| Total interest-earning assets | 6,803,674 | 3.47 | % | 6,419,372 | 3.64 | % | 4,936,931 | 4.56 | % | ||||||||||||||||||||||||||
Noninterest-earning assets(1) | 360,354 | 327,213 | 335,048 | ||||||||||||||||||||||||||||||||
| Total assets | $ | 7,164,028 | $ | 6,746,585 | $ | 5,271,979 | |||||||||||||||||||||||||||||
| Liabilities and Stockholders' Equity | |||||||||||||||||||||||||||||||||||
| Liabilities | |||||||||||||||||||||||||||||||||||
| Interest-bearing liabilities | |||||||||||||||||||||||||||||||||||
| Savings and interest-bearing transaction accounts | $ | 3,520,543 | 0.29 | % | $ | 3,011,389 | 0.39 | % | $ | 2,248,863 | 1.21 | % | |||||||||||||||||||||||
| Time deposits | 677,651 | 1.20 | 730,705 | 1.50 | 803,344 | 2.08 | |||||||||||||||||||||||||||||
| Total interest-bearing deposits | 4,198,194 | 0.43 | 3,742,094 | 0.61 | 3,052,207 | 1.44 | |||||||||||||||||||||||||||||
| FHLB advances and other borrowings | 339,027 | 1.57 | 532,689 | 1.17 | 342,000 | 1.62 | |||||||||||||||||||||||||||||
| Securities sold under agreements to repurchase | 8,467 | 0.09 | 10,506 | 0.10 | 18,198 | 0.65 | |||||||||||||||||||||||||||||
| Subordinated debentures | 144,475 | 4.66 | 78,585 | 4.69 | 9,668 | 5.67 | |||||||||||||||||||||||||||||
| Total interest-bearing liabilities | 4,690,163 | 0.64 | % | 4,363,874 | 0.75 | % | 3,422,073 | 1.46 | % | ||||||||||||||||||||||||||
| Noninterest-bearing liabilities | |||||||||||||||||||||||||||||||||||
| Noninterest-bearing deposits | 1,686,088 | 1,633,510 | 1,150,381 | ||||||||||||||||||||||||||||||||
Other liabilities(1) | 148,269 | 119,668 | 101,600 | ||||||||||||||||||||||||||||||||
| Total liabilities | 6,524,520 | 6,117,052 | 4,674,054 | ||||||||||||||||||||||||||||||||
| Stockholders' Equity | 639,508 | 629,533 | 597,925 | ||||||||||||||||||||||||||||||||
| Total liabilities and stockholders' equity | $ | 7,164,028 | $ | 6,746,585 | $ | 5,271,979 | |||||||||||||||||||||||||||||
| Net interest spread | 2.83 | % | 2.89 | % | 3.10 | % | |||||||||||||||||||||||||||||
| Net interest margin | 3.03 | % | 3.14 | % | 3.54 | % | |||||||||||||||||||||||||||||
Net interest margin - (tax- equivalent)(2) | 3.07 | % | 3.18 | % | 3.58 | % | |||||||||||||||||||||||||||||
Net interest margin excluding PPP loans - (tax- equivalent)(3) | 3.17 | % | 3.28 | % | N/A | ||||||||||||||||||||||||||||||
____________________________
(1)Includes Government National Mortgage Association ("GNMA") repurchase average balances of $61.9 million, $31.7 million, and $24.5 million for the three months ended December 31, 2020, September 30, 2020, and December 31, 2019, 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.
(3)Net interest margin, excluding PPP loans, fully tax equivalent is calculated by removing average PPP loans from average interest earning assets, and removing the associated interest income (net of 35 basis points assumed cost of funds on average PPP loan balances) from net interest income.
14
Origin Bancorp, Inc.
Non-GAAP Financial Measures
| (Dollars in thousands, except per share amounts, unaudited) | December 31, 2020 | September 30, 2020 | June 30, 2020 | March 31, 2020 | December 31, 2019 | ||||||||||||||||||||||||
| Calculation of Tangible Common Equity: | |||||||||||||||||||||||||||||
| Total common stockholders' equity | $ | 647,150 | $ | 627,637 | $ | 614,781 | $ | 606,631 | $ | 599,262 | |||||||||||||||||||
| Less: goodwill and other intangible assets, net | 30,480 | 30,717 | 30,953 | 31,241 | 31,540 | ||||||||||||||||||||||||
| Tangible Common Equity | $ | 616,670 | $ | 596,920 | $ | 583,828 | $ | 575,390 | $ | 567,722 | |||||||||||||||||||
| Calculation of Tangible Book Value per Common Share: | |||||||||||||||||||||||||||||
| Divided by common shares outstanding at the end of the period | 23,506,312 | 23,506,586 | 23,501,233 | 23,475,948 | 23,480,945 | ||||||||||||||||||||||||
| Tangible Book Value per Common Share | $ | 26.23 | $ | 25.39 | $ | 24.84 | $ | 24.51 | $ | 24.18 | |||||||||||||||||||
| Calculation of PTPP Earnings: | |||||||||||||||||||||||||||||
| Net Income | $ | 17,552 | $ | 13,095 | $ | 4,957 | $ | 753 | $ | 12,827 | |||||||||||||||||||
| Plus: provision for credit losses | 6,333 | 13,633 | 21,403 | 18,531 | 2,377 | ||||||||||||||||||||||||
| Plus: income tax expense | 4,431 | 3,206 | 786 | (427) | 3,175 | ||||||||||||||||||||||||
| PTPP Earnings | $ | 28,316 | $ | 29,934 | $ | 27,146 | $ | 18,857 | $ | 18,379 | |||||||||||||||||||
| Calculation of PTPP ROAA and PTPP ROAE: | |||||||||||||||||||||||||||||
| PTPP Earnings | $ | 28,316 | $ | 29,934 | $ | 27,146 | $ | 18,857 | $ | 18,379 | |||||||||||||||||||
| Divided by number of days in the quarter | 92 | 92 | 91 | 91 | 92 | ||||||||||||||||||||||||
| Multiplied by the number of days in the year | 366 | 366 | 366 | 366 | 365 | ||||||||||||||||||||||||
| Annualized PTPP Earnings | $ | 112,648 | $ | 119,085 | $ | 109,181 | $ | 75,842 | $ | 72,917 | |||||||||||||||||||
| Divided by total average assets | $ | 7,164,028 | $ | 6,746,585 | $ | 6,447,526 | $ | 5,400,704 | $ | 5,271,979 | |||||||||||||||||||
| PTPP ROAA (annualized) | 1.57 | % | 1.77 | % | 1.69 | % | 1.40 | % | 1.38 | % | |||||||||||||||||||
| Divided by total average stockholder's equity | $ | 639,508 | $ | 629,533 | $ | 617,898 | $ | 611,162 | $ | 597,925 | |||||||||||||||||||
| PTPP ROAE (annualized) | 17.61 | % | 18.92 | % | 17.67 | % | 12.41 | % | 12.19 | % | |||||||||||||||||||
15
Origin Bancorp, Inc.
Non-GAAP Financial Measures - Continued
| Year Ended December 31, | |||||||||||
| (Dollars in thousands, except per share amounts, unaudited) | 2020 | 2019 | |||||||||
| Calculation of PTPP Earnings: | |||||||||||
| Net Income | $ | 36,357 | $ | 53,882 | |||||||
| Plus: provision for credit losses | 59,900 | 9,568 | |||||||||
| Plus: income tax expense | 7,996 | 12,666 | |||||||||
| PTPP Earnings | $ | 104,253 | $ | 76,116 | |||||||
| Calculation of PTPP ROAA and PTPP ROAE: | |||||||||||
| PTPP Earnings | $ | 104,253 | $ | 76,116 | |||||||
| Divided by total average assets | $ | 6,442,528 | $ | 5,092,971 | |||||||
| PTPP ROAA | 1.62 | % | 1.49 | % | |||||||
| Divided by total average stockholder's equity | $ | 624,580 | $ | 580,945 | |||||||
| PTPP ROAE | 16.69 | % | 13.10 | % | |||||||
16
ORIGIN BANCORP, INC. _______ 4Q AND FULL YEAR TWENTY20 INVESTOR PRESENTATION ORIGIN BANCORP, INC.
ORIGIN BANCORP, INC. _______ 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, including the Company's loan loss reserves and allowance for credit losses related to the COVID-19 pandemic and any expected purchases of its outstanding common stock, and related transactions and other projections based on macroeconomic and industry trends, including expectations regarding and efforts to respond to the COVID-19 pandemic and continued low interest rates or interest rate cuts by the Federal Reserve and the resulting impact on Origin's results of operations, estimated forbearance amounts and expectations regarding the Company's liquidity, including in connection with advances obtained from the FHLB, which are all subject to change and may be inherently unreliable due to the multiple factors that impact broader economic and industry trends, and any such changes may be material. Such forward-looking statements are based on various facts and derived utilizing important assumptions and current expectations, estimates and projections about Origin and its subsidiaries, any of which may change over time and some of which may be beyond Origin's control. Statements or statistics preceded by, followed by or that otherwise include the words "assumes," "anticipates," "believes," "estimates," "expects," “foresees,” "intends," "plans," "projects," and similar expressions or future or conditional verbs such as "could," "may," “might,” "should," "will," and "would" and variations of such terms are generally forward-looking in nature and not historical facts, although not all forward-looking statements include the foregoing words. Further, certain factors that could affect the Company's future results and cause actual results to differ materially from those expressed in the forward-looking statements include, but are not limited to: the continuing duration and impacts of the COVID-19 global pandemic and continuing development and distribution of COVID-19 vaccines, as well as other efforts to contain the virus's transmission, including the effect of these factors on Origin's business, customers and economic conditions generally as well as the impact of the actions taken by governmental authorities to address the impact of COVID-19 on the United States economy, including, without limitation, the Coronavirus Aid, Relief and Economic Security Act ("CARES Act") and any related future economic stimulus legislation; deterioration of Origin's asset quality; factors that can impact the performance of Origin's loan portfolio, including real estate values and liquidity in Origin's primary market areas; the financial health of Origin's commercial borrowers and the success of construction projects that Origin finances; changes in the value of collateral securing Origin's loans; Origin's ability to anticipate interest rate changes and manage interest rate risk; the effectiveness of Origin's risk management framework and quantitative models; Origin's inability to receive dividends from Origin Bank and to service debt, pay dividends to Origin's common stockholders, repurchase Origin's shares of common stock and satisfy obligations as they become due; business and economic conditions generally and in the financial services industry, nationally and within Origin's primary market areas; changes in Origin's operation or expansion strategy or Origin's ability to prudently manage its growth and execute its strategy; changes in management personnel; Origin's ability to maintain important customer relationships, reputation or otherwise avoid liquidity risks; increasing costs as Origin grows deposits; operational risks associated with Origin's business; volatility and direction of market interest rates; 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; an increase in unemployment levels and slowdowns in economic growth; Origin's level of nonperforming assets and the costs associated with resolving any problem loans including litigation and other costs; the credit risk associated with the substantial amount of commercial real estate, construction and land development, and commercial loans in Origin's loan portfolio; changes in laws, rules, regulations, interpretations or policies relating to financial institutions, and potential expenses associated with complying with such regulations; periodic changes to the extensive body of accounting rules and best practices; further government intervention in the U.S. financial system; compliance with governmental and regulatory requirements, including the Dodd- Frank Wall Street Reform and Consumer Protection Act and others relating to banking, consumer protection, securities and tax matters; Origin's ability to comply with applicable capital and liquidity requirements, including its ability to generate liquidity internally or raise capital on favorable terms, including continued access to the debt and equity capital markets; changes in the utility of Origin's non-GAAP liquidity measurements and its underlying assumptions or estimates; uncertainty regarding the future of the London Interbank Offered Rate and the impact of any replacement alternatives on Origin's business; possible changes in trade, monetary and fiscal policies, laws and regulations and other activities of governments, agencies and similar organizations; natural disasters and adverse weather events, acts of terrorism, an outbreak of hostilities, regional or national protests and civil unrest (including any resulting branch closures or property damage), widespread illness or public health outbreaks or other international or domestic calamities, and other matters beyond Origin's control; and system failures, cybersecurity threats and/or security breaches and the cost of defending against them. For a discussion of these and other risks that may cause actual results to differ from expectations, please refer to the sections titled "Cautionary Note Regarding Forward-Looking Statements" and "Risk Factors" in Origin's most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission ("SEC") and any updates to those sections set forth in Origin's subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. If one or more events related to these or other risks or uncertainties materialize, or if Origin's underlying assumptions prove to be incorrect, actual results may differ materially from what Origin anticipates. Accordingly, you should not place undue reliance on any forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made, and Origin does not undertake any obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise. New risks and uncertainties arise from time to time, and it is not possible for Origin to predict those events or how they may affect Origin. In addition, Origin cannot assess the impact of each factor on Origin's business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. All forward-looking statements, expressed or implied, included in this communication are expressly qualified in their entirety by this cautionary statement. This cautionary statement should also be considered in connection with any subsequent written or oral forward-looking statements that Origin or persons acting on Origin's behalf may issue. Annualized, pro forma, adjusted projected and estimated numbers are used for illustrative purpose only, are not forecasts and may not reflect actual results. Furthermore, many of these risks and uncertainties are currently amplified by and may continue to be amplified by or may, in the future, be amplified by, the outbreak of the COVID-19 pandemic and the impact of varying governmental responses, including the CARES Act, and any related future economic stimulus legislation that affect Origin's customers and the economies where they operate. 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. 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 common stockholders' equity less goodwill and other intangible assets, net • Tangible assets is defined as total assets less goodwill and other intangible assets • Tangible common equity to tangible assets 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 • Pre-tax pre-provision earnings is calculated by adding provision for credit losses and income tax expense to net income • Pre-tax pre-provision return on average assets is calculated by dividing pre-tax pre-provision earnings by number of days in the quarter, multiplying by the number of days in the year, then dividing by total average assets • Pre-tax pre-provision return on average stockholder's equity is calculated by dividing pre-tax pre-provision earnings by number of days in the quarter, multiplying by the number of days in the year, then dividing by total average stockholder's equity See the last two slides in this presentation for a reconciliation between the non-GAAP measures used in this presentation and their comparable GAAP numbers. 2 FORWARD-LOOKING STATEMENTS AND NON-GAAP MEASURES
ORIGIN BANCORP, INC. _______ 9 10 19 6 TEXAS Entry: DFW 2008 | Houston 2013 Loans: $2,562 Deposits: $2,574 LOUISIANA Entry: 1912 Loans: $1,468 Deposits: $2,453 DOLLARS IN MILLIONS (1) (2) 3 COMPANY SNAPSHOT • Origin Bancorp, Inc., the holding company for Origin Bank, is headquartered in Ruston, LA • Origin Bank was founded in 1912 • 44 banking centers operating across Texas, Louisiana & Mississippi DEPOSITS & LOANS BY STATE Note: All financial information is as of 12/31/20. (1) Non-market based deposits of $255.6 million are not included in state deposits. (2) Excludes mortgage warehouse loans. MISSISSIPPI Entry: 2010 Loans: $611 Deposits: $468 9% 13% 45% 32% 46% 55% Loans (2)Deposits (1)
ORIGIN BANCORP, INC. _______ 4 A UNIQUE & DEFINED CULTURE
ORIGIN BANCORP, INC. _______ Balance Sheet 4Q2020 3Q2020 4Q2019 Linked Qtr $ Δ Linked Qtr % Δ YoY $ Δ YoY % Δ Total Loans Held For Investment ("LHFI") $ 5,724,773 $ 5,612,666 $ 4,143,195 $ 112,107 2.0 % $ 1,581,578 38.2 % Total Assets 7,628,268 7,101,338 5,324,626 526,930 7.4 2,303,642 43.3 Total Deposits 5,751,315 5,935,925 4,228,612 (184,610) (3.1) 1,522,703 36.0 Tangible Common Equity(1) 616,670 596,920 567,722 19,750 3.3 48,948 8.6 Book Value per Common Share 27.53 26.70 25.52 0.83 3.1 2.01 7.9 Tangible Book Value per Common Share(1) 26.23 25.39 24.18 0.84 3.3 2.05 8.5 Income Statement Net Interest Income 51,819 50,617 44,095 1,202 2.4 7,724 17.5 Provision for Credit Losses 6,333 13,633 2,377 (7,300) (53.5) 3,956 166.4 Noninterest Income 15,381 18,051 10,818 (2,670) (14.8) 4,563 42.2 Noninterest Expense 38,884 38,734 36,534 150 0.4 2,350 6.4 Net Income 17,552 13,095 12,827 4,457 34.0 4,725 36.8 Pre-Tax Pre-Provision Earnings ("PTPP")(1) 28,316 29,934 18,379 (1,618) (5.4) 9,937 54.1 Diluted EPS 0.75 0.56 0.55 0.19 33.9 0.20 36.4 Dividends Declared per Common Share 0.10 0.0925 0.0925 0.01 8.1 0.01 8.1 Selected Ratios NIM - FTE 3.07 % 3.18 % 3.58 % -11 bp (3.5) % -51 bp (14.2) % Efficiency Ratio 57.86 56.41 66.53 145 bp 2.6 -867 bp (13.0) ROAA (annualized) 0.97 0.77 0.97 20 bp 26.0 0 bp — ROAE (annualized) 10.92 8.28 8.51 264 bp 31.9 241 bp 28.3 PTPP ROAA (annualized)(1) 1.57 1.77 1.38 -20 bp (11.3) 19 bp 13.8 PTPP ROAE (annualized)(1) 17.61 18.92 12.19 -131 bp (6.9) 542 bp 44.5 DOLLARS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS 5 (1) As used in this presentation, tangible common equity, tangible book value per common share, PTPP, PTPP ROAA, and PTPP ROAE are non-GAAP financial measures. For a reconciliation of these non-GAAP financial measures to their comparable GAAP measures, see slide 24 of this presentation. FINANCIAL RESULTS - FOURTH QUARTER 2020
ORIGIN BANCORP, INC. _______ Income Statement Year Ended YoY $ Δ YoY % ΔDecember 31, 2020 December 31, 2019 Net Interest Income $ 191,536 $ 173,712 $ 17,824 10.3 % Provision for Credit Losses 59,900 9,568 50,332 526.0 Noninterest Income 64,652 46,478 18,174 39.1 Noninterest Expense 151,935 144,074 7,861 5.5 Net Income 36,357 53,882 (17,525) (32.5) PTPP(1) 104,253 76,116 28,137 37.0 Diluted EPS 1.55 2.28 (0.73) (32.0) Dividends Declared per Common Share 0.3775 0.25 0.13 51.0 Selected Ratios NIM - FTE 3.18 % 3.69 % -51 bp (13.8) % Efficiency Ratio 59.31 65.43 -612 bp (9.4) ROAA 0.56 1.06 -50 bp (47.2) ROAE 5.82 9.27 -345 bp (37.2) PTPP ROAA (1) 1.62 1.49 13 bp 8.7 PTPP ROAE (1) 16.69 13.10 359 bp 27.4 DOLLARS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS 6 (1) As used in this presentation, PTPP, PTPP ROAA, and PTPP ROAE are non-GAAP financial measures. For a reconciliation of these non-GAAP financial measures to their comparable GAAP measures, see slide 25 of this presentation. FINANCIAL RESULTS - FULL YEAR 2020
ORIGIN BANCORP, INC. _______ 7 $1,218 $1,311 $1,741 $1,956 $2,562 $874 $884 $1,067 $1,127 $1,553 $344 $427 $674 $829 $1,009 DFW Houston 2016 2017 2018 2019 2020 Deposit Trends by Texas Market Loan Trends by Texas Market TEXAS GROWTH STORY Texas Franchise Highlights DOLLARS IN MILLIONS • Market share of Texas deposits increased at a 11.4% CAGR from 2016 to 2020 • 19 branches throughout 5 counties in the 4th and 5th largest MSAs in the United States • Texas franchise represents 55% of LHFI, excluding mortgage warehouse loans, and 46% of deposits (1) at December 31, 2020 $1,114 $1,171 $1,395 $1,854 $2,574 $679 $647 $772 $989 $1,581 $435 $524 $623 $865 $993 DFW Houston 2016 2017 2018 2019 2020 CAGR 2 0.4% CAGR 2 3.3% (1) Non-market based deposits of $255.6 million are not included in state deposits.
ORIGIN BANCORP, INC. _______ 8 COVID-19 LHFI Forbearances 6/30/2020 9/30/2020 12/31/2020 Industry Forbearance Amount % of LHFI(1) Forbearance Amount % of LHFI(1) Forbearance Amount % of LHFI(1) Hotel $ 59,258 92.5 % $ 58,482 91.4 % $ 21,959 34.7 % Energy 6,776 10.8 870 1.6 676 1.7 Non-Essential Retail 82,424 56.2 39,989 26.4 25,177 14.3 Restaurant 100,209 74.7 29,619 21.8 7,761 6.6 Assisted Living 48,935 34.9 21,625 14.9 11,470 8.1 Other 709,564 16.8 146,521 3.2 30,609 0.7 Total $ 1,007,166 21.1 % $ 297,106 5.7 % $ 97,652 1.9 % SUPPORTING OUR CUSTOMERS - FORBEARANCE AND PPP LOANS DOLLARS IN THOUSANDS • Forbearances represented 1.9% of total LHFI, excl. PPP loans, at 12/31/2020. • 52% of forbearances at 12/31/2020, were full deferment and 48% were partial deferments. . • Amounts under forbearance declined by greater than 90% at 12/31/2020, compared to June 30, 2020. PPP HighlightsForbearance Highlights (1) Does not include PPP loans. • PPP loans totaled $546.5 million at 12/31/2020. • Average PPP loan: $176K; Median loan: $35K, Over 3,100 loans • Total interest and fee income recognized in 4Q2020: $3.3 million; $9.6 million of net fees yet to be recognized at 12/31/2020. • PPP loans of $150K or less totaled $96.1 million at 12/31/2020. • At 1/20/2021, $36.0 million in forgiveness approved by the SBA, $168.6 million submitted for forgiveness, totaling $204.6 million in PPP forgiveness funds requested.
ORIGIN BANCORP, INC. _______ 9 MOBILE FEATURE ADOPTION RATES(1) SUPPORTING OUR CUSTOMERS - LEVERAGING TECHNOLOGY ZELLE® USERS 75.6% GROWTH ZELLE® TRANSFERS 106.1% GROWTH 32.0% TRANSFER ADOPTION % ORIGIN BANK 28.5% INDUSTRY BENCHMARK 25.4% DEPOSIT ADOPTION % ORIGIN BANK 19.5% INDUSTRY BENCHMARK 7.6% BILL PAY ADOPTION % ORIGIN BANK 5.6% INDUSTRY BENCHMARK (1) All data provided by FIS Metrics Intelligence based upon asset size peer groups and is for the month of December 2020.. REGISTERED APP USERS 15.4% GROWTH MOBILE DEPOSIT TRANSACTIONS 24.8% GROWTH Note: Growth rates compare December 2020 to December 2019.
ORIGIN BANCORP, INC. _______ 10 $4,203 $4,325 $4,964 $5,376 $1,150 $1,098 $1,579 $1,634 $1,686 $2,088 $2,283 $2,410 $2,704 $2,869$162 $162 $224 $307 $651 $803 $782 $752 $731 $678 $5,884 Noninterest-bearing Interest-bearing Brokered Time Deposits 4Q2019 1Q2020 2Q2020 3Q2020 4Q2020 Deposits by State (2)Average Deposits (1) Average brokered time deposits are included in the brokered category. (2) Non-market based deposits are not included in state deposits. (3) Target time deposit rates 25 basis points or less for new deposits. DEPOSIT TRENDS 2.08% 1.98% 1.75% 1.50% 1.20% 1.44% 1.28% 0.79% 0.61% 0.43% 1.04% 0.95% 0.51% Time Deposits Total Interest-bearing Deposits Cost of Total Deposits Savings & Interest-bearing Transaction Accounts 4Q2019 1Q2020 2Q2020 3Q2020 4Q2020 Deposit Cost Trends (QTD Annualized) Time Deposit Repricing Schedule (3) Maturity Balance WAR 1Q2021 157 1.35 2Q2021 162 0.87 3Q2021 96 0.93 4Q2021 83 0.74 1Q2022+ 167 1.27 Total $ 665 1.07 % 0.42% 1.05% 1.21% DOLLARS IN MILLIONS (1) 32% 33% 39% 44% 46% 18% 17% 11% 11% 9% 50% 50% 50% 45% 45% Texas Mississippi Louisiana 2016 2017 2018 2019 2020 0.54% 0.39% 0.29% 0.31%
ORIGIN BANCORP, INC. _______ Mtg. Warehouse: 21% Real Estate & Construction: 8% Finance & Insurance: 5% Transportation: 3% Consumer Svc: 2% Retail Dealer: 2% Healthcare: 2% Banks: 2% Restaurants: 1% Professional Svc: 1% Commercial Svc: 1% Entertainment: 1% Gov & Edu: 1% Misc: 7% Owner Occupied Construction/Land/Land Development ("C&D"): 2% Owner Occupied Commercial Real Estate ("CRE"): 9% Real Estate & Construction: 5% Office Building: 5% Assisted Living: 3% Non-Essential Retail Shopping: 3% Other Healthcare: 2% Essential Retail Shopping: 2% Multi-family: 2% Hotel: 1% Restaurant: 1% Misc: 2% 11 WELL DIVERSIFIED LOAN PORTFOLIO (Dollars in thousands) 4Q2019 1Q2020 2Q2020 3Q2020 4Q2020 C&I excl. PPP $ 1,343,475 $ 1,455,497 $ 1,313,405 $ 1,263,279 $ 1,271,343 Owner Occupied C&D 117,118 122,928 120,776 100,589 100,755 Owner Occupied CRE 441,555 463,834 459,661 495,366 460,524 Mtg. Warehouse 274,659 437,257 769,157 1,017,501 1,084,001 Non-Owner Occupied C&D 400,570 440,892 449,256 460,268 431,105 Non-Owner Occupied CRE 855,292 838,686 864,093 872,550 927,415 Residential Real Estate 689,555 703,263 769,354 832,055 885,120 Consumer Loans 20,971 18,828 17,363 18,729 17,991 PPP Loans — — 549,129 552,329 546,519 Total Loans $ 4,143,195 $ 4,481,185 $ 5,312,194 $ 5,612,666 $ 5,724,773 Loan Portfolio Details Non-Owner Occupied C&D and CRE: (1) $1,359 C&I, Owner Occupied C&D and CRE, Mtg. Warehouse: (1) $2,916 C&I, Owner Occupied C&D and CRE, Mtg. Warehouse: 57% Non-Owner Occupied C&D and CRE: 26% (1) Does not include loans held for sale or PPP loans. Loan Composition at 12/31/2020: (1) $5,178 Commercial & Industrial ("C&I"): 25% Mtg. Warehouse: 21% Non- Owner Occupied C&D: 8% Residential Real Estate and Consumer: 17% Non-Owner Occupied CRE: 18% DOLLARS IN MILLIONS
ORIGIN BANCORP, INC. _______ 12 LHFI(2) at 12/31/2020 Non-Essential Retail: 3.4% Assisted Living: 2.7% Restaurant: 2.3% Hotel: 1.2% Energy: 0.8% Outstanding Balance (dollars in thousands) 12/31/2019 3/31/2020 6/30/2020 9/30/2020 12/31/2020 Hotel $ 61,846 $ 63,264 $ 64,043 $ 63,951 $ 63,218 Energy 69,161 82,786 62,695 55,526 39,346 Non-Essential Retail 139,516 131,187 146,566 151,201 176,522 Restaurant 123,530 132,430 134,104 135,801 117,844 Assisted Living 111,229 118,790 140,218 144,756 141,657 Subtotal 505,282 528,457 547,626 551,235 538,587 All other LHFI (2) 3,637,913 3,952,728 4,215,439 4,509,102 4,639,667 Total LHFI (2) $ 4,143,195 $ 4,481,185 $ 4,763,065 $ 5,060,337 $ 5,178,254 DEEP DIVE - SELECTED SECTORS (1) Selected sectors include hotel, energy, non-essential retail, restaurant and assisted living and exclude PPP loans. (2) LHFI excluding PPP loans. (1) All Other LHFI: 89.6% • LHFI (excl. PPP loans net of deferred fees and costs) were $5.18 billion at 12/31/2020, an increase of $117.9 million, or 2.3%, compared to 9/30/2020, and an increase of 1.04 billion, or 25.0%, compared to 12/31/2019. • Five sectors accounted for 10.4% of total LHFI (excl. PPP loans net of deferred fees and costs).
ORIGIN BANCORP, INC. _______ Hilton: 31% Marriott: 26% Hyatt: 18% Choice: 12% Private Label: 6% IHG: 6% HOTEL SECTOR 13 Hotel Stats: • Balance represented 1.2% of total LHFI excl. PPP loans • Past due: $0; Classified loans: $0; NPL: $0 • No conference center hotels • Total forbearance amount: $22.0 million • Pre-COVID-19 hotel sector LTV 41% and DSCR 1.40x Hotel Portfolio at 12/31/2020 $63.2M Outstanding Balance (dollars in thousands) 12/31/2019 3/31/2020 6/30/2020 9/30/2020 12/31/2020 Hotels & Motels $ 60,816 $ 62,212 $ 62,999 $ 62,915 $ 62,487 Bed-and-Breakfast Inns 1,030 1,052 1,044 1,036 731 Total Hotel $ 61,846 $ 63,264 $ 64,043 $ 63,951 $ 63,218 Bed-and-Breakfast: 1% Hotels and Motels (by flag): 93% (1) (1) Excluding PPP loans.
ORIGIN BANCORP, INC. _______ 14 Energy Stats: • Balance represented 0.8% of total LHFI excl. PPP loans • Past due(2): $1.5 million; Classified loans: $2.2 million; NPL: $1.5 million • No exploration & production lending exposure • Total forbearance amount: $676,000 • Pre-COVID-19 energy sector LTV 78% and DSCR 12.36x ENERGY SECTOR Energy Portfolio at 12/31/2020 Midstream: 25% Services: 75% $39.3M Outstanding Balance (dollars in thousands) 12/31/2019 3/31/2020 6/30/2020 9/30/2020 12/31/2020 Services (2) $ 56,331 $ 69,956 $ 52,567 $ 45,334 $ 29,463 Midstream 12,830 12,830 10,128 10,193 9,883 Total Energy $ 69,161 $ 82,786 $ 62,695 $ 55,527 $ 39,346 (1) (1) Excluding PPP loans. (2) Past due loans excluding NPLs for Energy Services is 0%, and represents one relationship.
ORIGIN BANCORP, INC. _______ National Credit Tenant: 55% CRE Retail Stores: 39% Retail Shopping: 6% NON-ESSENTIAL RETAIL SECTOR 15 Non-Essential Retail Stats: • Balance represented 3.4% of total LHFI excl. PPP loans • Past due: $2.6 million; Classified loans: $3.4 million; NPL: $3.0 million • Total forbearance amount: $25.2 million • Pre-COVID-19 non-essential retail sector LTV 56% and DSCR 1.47x Non-Essential Retail Portfolio at 12/31/2020 $176.5M Outstanding Balance (dollars in thousands) 12/31/2019 3/31/2020 6/30/2020 9/30/2020 12/31/2020 National Credit Tenant $ 83,468 $ 69,513 $ 89,204 $ 98,108 $ 96,031 CRE Retail Stores 45,124 45,006 44,637 40,392 69,078 Retail Shopping 10,924 16,668 12,725 12,701 11,413 Total Non-Essential Retail $ 139,516 $ 131,187 $ 146,566 $ 151,201 $ 176,522 (1) (1) Excluding PPP loans.
ORIGIN BANCORP, INC. _______ 16 Restaurant Stats: • Balance represented 2.3% of total LHFI excl. PPP loans • Past due: $0; Classified loans: $3.3 million; NPL: $0 • Total forbearance amount: $7.8 million • Pre-COVID-19 restaurant sector LTV 54% and DSCR 1.40x RESTAURANT SECTOR Restaurant Portfolio at 12/31/2020 Full Service Restaurant: 35% CRE Restaurant: 42% Limited-Service Restaurant: 23% $117.8M Outstanding Balance (dollars in thousands) 12/31/2019 3/31/2020 6/30/2020 9/30/2020 12/31/2020 Full Service Restaurants $ 55,669 $ 57,210 $ 51,195 $ 51,197 $ 41,116 CRE Restaurant 41,712 47,161 34,504 41,613 49,488 Limited-Service Restaurant 26,149 28,059 48,405 42,991 27,240 Total Restaurant $ 123,530 $ 132,430 $ 134,104 $ 135,801 $ 117,844 (1) (1) Excluding PPP loans.
ORIGIN BANCORP, INC. _______ 17 Assisted Living Stats: • Balance represented 2.7% of total LHFI excl. PPP loans • Past due(2): $1.5 million; Classified loans: $1.5 million; NPL: $1.5 million • Total forbearance amount: $11.5 million • Pre-COVID-19 assisted living sector LTV 75% and DSCR 0.31x$141.7M Outstanding Balance (dollars in thousands) 12/31/2019 3/31/2020 6/30/2020 9/30/2020 12/31/2020 Assisted Living (2) $ 111,229 $ 118,790 $ 140,218 $ 144,756 $ 141,657 ASSISTED LIVING SECTOR Assisted Living Portfolio at 12/31/2020 (1) Excluding PPP loans. (2) Past due loans excluding NPLs for assisted living is 0%, and represents one relationship. Assisted Living Facilities: 100% (1)
ORIGIN BANCORP, INC. _______ 1.6% 1.7% 2.0% 2.0% 2.1% Classified Loans / Total Loans excl. PPP Loans Net Charge-Offs / Average LHFI excl. PPP Loans (annualized) 4Q2019 1Q2020 2Q2020 3Q2020 4Q2020 0.26% 0.11% 0.58% 0.15% 0.14% 0.75% 0.74% 0.63% 0.60% 0.50% 0.72% 1.14% 0.50% 0.58% 0.50% Nonperforming LHFI / LHFI excl. PPP loans Past due LHFI / LHFI excl. PPP loans 4Q2019 1Q2020 2Q2020 3Q2020 4Q2020 18 CREDIT QUALITY (dollars in thousands) 1/1/2020 3/31/2020 6/30/2020 9/30/2020 12/31/2020 Commercial real estate $ 4,961 $ 9,254 $ 10,046 $ 14,349 $ 15,430 Construction/land/land development 4,852 5,054 6,860 8,450 8,191 Residential real estate 3,806 4,495 6,911 8,226 9,418 Commercial and industrial 24,256 35,823 45,281 48,763 51,857 Mortgage warehouse lines of credit 291 779 602 904 856 Consumer 602 658 768 951 918 Total Allowance for Loan Credit Losses $ 38,768 $ 56,063 $ 70,468 $ 81,643 $ 86,670 % of LHFI 0.94 % 1.25 % 1.33 % 1.45 % 1.51 % % of LHFI excl. PPP loans and mtg. warehouse 0.99 % 1.37 % 1.75 % 2.00 % 2.10 % Asset Quality Trends CECL
ORIGIN BANCORP, INC. _______ 19 LHFI: Fixed \ Variable (by Index) at 12/31/2020 • The cost of interest bearing deposits declined 18 bps, the cost of total deposits declined 11 bps and the cost of borrowings increased 40 bps during 4Q2020. • Variable rate LHFI made up 59% of total LHFI incl. PPP loans, with 35% based on 1 month LIBOR. • The other indices category is primarily LIBOR ARMs. Fixed: 41% 1m LIBOR: 35% Prime: 18% Other indices: 6% YIELDS, COSTS AND LHFI PROFILE Yield on LHFI 4.83% 4.44% 3.25% 3.25% 3.25% 4.95% 4.85% 4.09% 4.02% 4.22% 4.20% 4.06% 1.79% 1.40% 0.35% 0.16% 0.15% Avg. Prime Rate Yield on LHFI Yield on LHFI excl. PPP Loans Avg. 1M LIBOR 4Q2019 1Q2020 2Q2020 3Q2020 4Q2020 Cost of Funds 1.44% 1.28% 0.79% 0.61% 0.43% 1.10% 1.05% 0.65% 0.47% 1.04% 0.95% 0.54% 0.42% 0.31% Cost of Interest Bearing Deposits Cost of Total Deposits & Borrowings Cost of Total Deposits 4Q2019 1Q2020 2Q2020 3Q2020 4Q2020 0.54% 3.89%
ORIGIN BANCORP, INC. _______ 20 DOLLARS IN THOUSANDS $44,095 $42,810 $46,290 $50,617 $51,819 $44,095 $42,810 $43,238 $47,187 $48,542$3,052 $3,430 $3,277 3.58% 3.44% 3.09% 3.18% 3.07% 3.15% 3.28% 3.17% Net Interest Income excl. PPP Loans PPP Loans Net Interest Income NIM (FTE) NIM (FTE) excl. PPP Loans 4Q2019 1Q2020 2Q2020 3Q2020 4Q2020 • Net interest income increased $1.2 million in 4Q2020 from 3Q2020, and increased $7.7 million in 4Q2020 from 4Q2019. • Interest income on mortgage warehouse lines of credit contributed the greatest increase in net interest income, along with deposit cost savings. • NIM decreased by 11 bps to 3.07% in 4Q2020 from 3Q2020 driven by increases in sub debt balances and declines in loan yields, partially offset by deposit cost reductions. • Excluding the impact of lower yielding PPP loans, NIM was 3.17%. NET INTEREST INCOME AND NIM TRENDS $51,819 $50,617 $1,541 $1,116 $586 $224 $(1,516) $(761) $12 3Q 20 20 W ar eh ou se De po sit s In ve stm en t S ec ur itie s Bo rro wi ng s C& I in cl. P PP lo an s Su bo rd ina te d De be nt ur e Ot he rs 4Q 20 20 $45,000 $50,000 $55,000 3.18% 0.04% 0.03% 0.02% (0.05)% (0.05)% (0.03)% (0.02)% (0.05)% 3Q 20 20 Ot he r I nt er es t-B ea rin g De po sit s Ti m e De po sit s M tg . W ar eh ou se V olu m e Su bo rd ina te d De be nt ur es Vo lum e C& I, no n- PP P Lo an s In ve stm en t S ec ur itie s C& D Lo an s Ot he r E ffe cts 4Q 20 20 3.00% 3.25% 3.07% Net Interest Income Changes - 4Q2020 NIM Changes - 4Q2020
ORIGIN BANCORP, INC. _______ 21 $10,818 $12,144 $19,076 $18,051 $15,381 $3,488 $3,320 $2,990 $3,268 $3,420 $3,359 $2,769 $10,717 $9,523 $6,594 $2,428 $3,687 $3,109 $3,218 $2,732 $151 $676 $1,527 $110 $233 $1,392 $1,692 $733 $1,932 $2,402 Service Charges & Fees Mortgage Banking Revenue Insurance Commission & Fee Income Swap Fee Income Other 4Q2019 1Q2020 2Q2020 3Q2020 4Q2020 $54,913 $54,954 $65,366 $68,668 $67,200 $44,095 $42,810 $46,290 $50,617 $51,819 $10,818 $12,144 $19,076 $18,051 $15,381 Net Interest Income Noninterest Income 4Q2019 1Q2020 2Q2020 3Q2020 4Q2020 Noninterest IncomeNet Interest Income \ Noninterest Income • Noninterest income historically accounts for approximately 20% of total net revenue, but accounted for 23% in 4Q2020 due to continued strong mortgage revenue. • Mortgage servicing revenue was lower due to a $1.6 million decrease in volume-related gains and income and a $1.3 million decrease in hedge performance compared to the inked quarter. • Swap fee income generation continues to be a focus in 2020. The increase in 4Q2020 from 3Q2020 was driven by higher transaction volume. NET REVENUE DISTRIBUTION DOLLARS IN THOUSANDS
ORIGIN BANCORP, INC. _______ $36,534 $36,097 $38,220 $38,734 $38,884 $22,074 $21,988 $24,045 $22,597 $22,475 $4,241 $4,221 $4,267 $4,263 $4,271 $1,801 $2,003 $2,075 $2,065 $2,178 $1,632 $1,441 $1,344 $1,367 $1,472 $1,400 $1,142 $1,509 $1,809 $1,856 $5,386 $5,302 $4,980 $6,633 $6,632 Salaries and Employee Benefits Occupancy and Equipment, net Data Processing Office and Operations Loan Related Expenses Other 4Q2019 1Q2020 2Q2020 3Q2020 4Q2020 22 • Operating leverage reflects an overall improving trend in the efficiency ratio, coupled with a decline in the ratio of NIE to average assets primarily as a result of improved mortgage performance in recent quarters. • Efficiency improvements during the year were partially offset by the declining interest margin. • Other noninterest expenses in 3Q2020 & 4Q2020 included $700,000 in donations and contributions made to various institutions as part of our initiative to invest a portion of our PPP loan income within the community. • The continued focus is on our technology strategy to build efficient scale to support additional organic growth, with additional focus on branch strategy and operational efficiency to withstand challenges posed by COVID-19. E F F IC E N C Y R A T IO ( % ) 2.75% 2.69% 2.38% 2.28% 2.16% 66.53% 65.69% 58.47% 56.41% 57.86% 4Q2019 1Q2020 2Q2020 3Q2020 4Q2020 40% 60% 80% 100% 1.5% 2.0% 2.5% 3.0% Operating Leverage NONINTEREST EXPENSE COMPOSITION N IE / AV E R A G E A S S E T S ( % ) DOLLARS IN THOUSANDS
ORIGIN BANCORP, INC. _______ Tier 1 Capital to Average Assets (Leverage Ratio) 10.6% 10.4% 8.8% 8.8% 9.0% 10.9% 10.7% 9.1% 9.2% 8.6% 10.9% 10.7% 9.1% 9.2% 8.6% Bank Level Company Level 4Q2019 1Q2020 2Q2020 3Q2020 4Q2020 Tier 1 Capital to Risk-Weighted Assets 11.6% 10.7% 10.1% 9.6% 10.5% 11.9% 11.0% 10.5% 10.1% 10.1% 11.9% 11.0% 10.5% 10.1% 10.1% Bank Level Company Level 4Q2019 1Q2020 2Q2020 3Q2020 4Q2020 23 CAPITAL Bank Level Company Level Sub-debt Impact Total Capital to Risk-Weighted Assets 12.4% 13.0% 12.5% 12.0% 12.9%12.8% 13.4% 12.9% 12.5% 13.8% 12.8% 13.4% 12.9% 12.5% Bank Level Company Level 4Q2019 1Q2020 2Q2020 3Q2020 4Q2020 Total Capital to Risk-Weighted Assets Changes - 4Q2020 12.50% 1.30% 0.40% (0.20)% (0.10)% (0.10)% 3Q 20 20 Su bo rd ina te d De be nt ur es Ne t I nc om e ex cl. Cr ed it L os s A cc ru als M or tg ag e W ar eh ou se In ve stm en t Se cu rit ies Re sid en tia l R ea l Es ta te L oa ns 4Q 20 20 5.00% 10.00% 15.00% 13.80%
ORIGIN BANCORP, INC. _______ Calculation of Tangible Common Equity: 4Q2020 3Q2020 4Q2019 Total common stockholders' equity $ 647,150 $ 627,637 $ 599,262 Less: goodwill and other intangible assets, net 30,480 30,717 31,540 Tangible Common Equity $ 616,670 $ 596,920 $ 567,722 Calculation of Tangible Assets: Total Assets $ 7,628,268 $ 7,101,338 $ 5,324,626 Less: goodwill and other intangible assets, net 30,480 30,717 31,540 Tangible Assets $ 7,597,788 $ 7,070,621 $ 5,293,086 Tangible Common Equity to Tangible Assets 8.12 % 8.44 % 10.73 % Calculation of Tangible Book Value per Common Share: Divided by common shares outstanding at the end of the period 23,506,312 23,506,586 23,480,945 Tangible Book Value per Common Share $ 26.23 $ 25.39 $ 24.18 Calculation of PTPP Earnings: Net Income $ 17,552 $ 13,095 $ 12,827 Plus: provision for credit losses 6,333 13,633 2,377 Plus: income tax expense 4,431 3,206 3,175 PTPP Earnings $ 28,316 $ 29,934 $ 18,379 Calculation of PTPP ROAA and PTPP ROAE: PTPP Earnings $ 28,316 $ 29,934 $ 18,379 Divided by number of days in the quarter 92 92 92 Multiplied by the number of days in the year 366 366 365 Annualized PTPP Earnings $ 112,648 $ 119,085 $ 72,917 Divided by total average assets $ 7,164,028 $ 6,746,585 $ 5,271,979 PTPP ROAA (annualized) 1.57 % 1.77 % 1.38 % Divided by total average stockholder's equity $ 639,508 $ 629,533 $ 597,925 PTPP ROAE (annualized) 17.61 % 18.92 % 12.19 % 24 DOLLARS IN THOUSANDS RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
ORIGIN BANCORP, INC. _______ Year Ended December 31, 2020 December 31, 2019 Calculation of PTPP Earnings: Net Income $ 36,357 $ 53,882 Plus: provision for credit losses 59,900 9,568 Plus: income tax expense 7,996 12,666 PTPP Earnings $ 104,253 $ 76,116 Calculation of PTPP ROAA and PTPP ROAE: Divided by total average assets $ 6,442,528 $ 5,092,971 PTPP ROAA 1.62 % 1.49 % Divided by total average stockholder's equity $ 624,580 $ 580,945 PTPP ROAE 16.69 % 13.10 % 25 DOLLARS IN THOUSANDS RECONCILIATION OF NON-GAAP FINANCIAL MEASURES YTD
Exhibit 99.3
FOR IMMEDIATE RELEASE
January 27, 2021
Origin Bancorp, Inc. Announces Declaration of Quarterly Cash Dividend
RUSTON, LOUISIANA (January 27, 2021) - Origin Bancorp, Inc. (Nasdaq: OBNK) ("Origin"), the holding company for Origin Bank, today announced that on January 27, 2021, its board of directors declared a quarterly cash dividend of $0.10 per share of its common stock. The cash dividend will be paid on February 26, 2021, to stockholders of record as of the close of business on February 12, 2021.
About Origin Bancorp, Inc.
Origin is a financial holding company headquartered in Ruston, Louisiana. Origin’s wholly owned bank subsidiary, Origin Bank, was founded in 1912. Deeply rooted in Origin’s history is a culture committed to providing personalized, relationship banking to its clients and communities. Origin provides a broad range of financial services to businesses, municipalities, high net worth individuals and retail clients. Origin currently operates 44 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
When used in filings by Origin Bancorp, Inc. (the "Company") with the Securities and Exchange Commission (the "SEC"), in the Company's press releases or other public or stockholder communications, and in oral statements made with the approval of an authorized executive officer, the words or phrases "anticipates," "believes," "estimates," "expects," “foresees,” "intends," "plans," "projects," and similar expressions or future or conditional verbs such as "could," "may," “might,” "should," "will," and "would" or variations of such terms" are intended to identify "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are subject to certain risks and uncertainties that could cause actual results to differ materially from historical earnings and those presently anticipated or projected. Factors that might cause such a difference include among other things: the expected payment date of its quarterly cash dividend; changes in economic conditions; the duration and impacts of the COVID-19 global pandemic continuing development and distribution of COVID-19 vaccines, as well as other efforts to contain the virus's transmission, including the effect of these factors and developments on the Company's business, customers and economic conditions generally; legislative action taken by governmental authorities to address the impact of COVID-19 on the United States economy, including, without limitation, the Coronavirus Aid, Relief and Economic Security Act and any related future economic stimulus legislation; other legislative changes generally; changes in policies by regulatory agencies; fluctuations in interest rates; the risks of lending and investing activities, including changes in the level and direction of loan delinquencies and write-offs and changes in estimates of the adequacy of the allowance for loan losses; the Company's ability to access cost-effective funding; fluctuations in real estate values and both residential and commercial real estate market conditions; demand for loans and deposits in the Company's market area; competition; changes in management’s business strategies and other factors set forth in the Company's filings with the SEC.
The Company does not undertake - and specifically declines any obligation - to update or revise any forward-looking statements to reflect events or circumstances 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