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 April 27, 2022, Origin Bancorp, Inc. (the "Registrant") issued a press release announcing its first quarter 2022 results of operations. A copy of the press release is attached hereto as Exhibit 99.1, which is incorporated herein by reference.
On Thursday, April 28, 2022, at 8:00 a.m. Central Time, the Registrant will host an investor conference call and webcast to review its first quarter 2022 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 April 27, 2022. 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 April 27, 2022, the Registrant issued a press release announcing that the board of directors of the Registrant declared a quarterly cash dividend of $0.15 per share of its common stock. The cash dividend will be paid on May 31, 2022, to stockholders of record as of the close of business on May 17, 2022. The press release is attached hereto 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: April 27, 2022 | 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 FIRST QUARTER 2022
RUSTON, Louisiana (April 27, 2022) - Origin Bancorp, Inc. (Nasdaq: OBNK) (“Origin” or the “Company”), the holding company for Origin Bank (the “Bank”), today announced net income of $20.7 million, or $0.87 diluted earnings per share for the quarter ended March 31, 2022, compared to net income of $28.3 million, or $1.20 diluted earnings per share for the quarter ended December 31, 2021, and net income of $25.5 million, or $1.08 diluted earnings per share for the quarter ended March 31, 2021.
“Origin had another strong quarter as our bankers drove significant loan and deposit growth by building meaningful, long-term relationships,” said Drake Mills, chairman, president and CEO of Origin Bancorp, Inc. “I am very pleased with the core fundamentals of our business and how we are positioned as we move forward.”
First Quarter Financial Highlights
•Total loans held for investment (“LHFI”) at March 31, 2022, excluding PPP loans and mortgage warehouse lines of credit, were $4.66 billion, reflecting a $160.5 million or 14.5% annualized increase, compared to the linked quarter, and a $483.7 million, or 11.6% increase, compared to March 31, 2021.
•Total deposits grew $196.5 million, or 12.1% annualized, to $6.77 billion at March 31, 2022, compared to $6.57 billion at December 31, 2021, and increased $421.0 million, or 6.6%, compared to March 31, 2021. Noninterest-bearing deposits grew $132.2 million, or 24.8% annualized, compared to December 31, 2021, and $559.1 million, or 32.2%, compared to March 31, 2021, and represented 33.9% of total deposits at March 31, 2022.
•Average balances of total securities for the quarter ended March 31, 2022, were $1.66 billion, reflecting a $157.1 million, or 10.4%, increase compared to the linked quarter, and a $616.2 million, or 58.9% increase, compared to the quarter ended March 31, 2021. Total securities were $1.92 billion at March 31, 2022, compared to $1.53 billion at December 31, 2021, and increased $888.4 million, or 86.3%, compared to March 31, 2021.
•Provision for credit losses was a net benefit of $327,000 for the quarter ended March 31, 2022, compared to a net benefit of $2.6 million for the linked quarter and a provision expense of $1.4 million for the quarter ended March 31, 2021.
•Total nonperforming LHFI to total LHFI was 0.41% at March 31, 2022, compared to 0.48% at December 31, 2021, and 0.57% at March 31, 2021, reflecting the lowest total nonperforming LHFI to total LHFI ratio for Origin as a public company. The allowance for loan credit losses to nonperforming LHFI was 293.53% at March 31, 2022, compared to 259.35% and 255.22% at December 31, 2021, and March 31, 2021, respectively.
•On February 23, 2022, the Company entered into an agreement and plan of merger with BT Holdings, Inc., (“BTH”), pursuant to which, upon the terms and subject to the conditions set forth in the merger agreement, BTH will merge with and into the Company, with Origin Bancorp, Inc. as the surviving entity in the merger. Subject to various terms and conditions, the merger is expected to close during the second half of 2022.
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Results of Operations for the Three Months Ended March 31, 2022
Net Interest Income and Net Interest Margin
Net interest income for the quarter ended March 31, 2022, was $52.5 million, a decrease of $1.7 million, or 3.1%, compared to the linked quarter. The decline in the number of days during the current period compared to the linked period accounted for a decline in net interest income of $1.3 million. Excluding the impact due to the difference in the number of days during the comparative periods, the decrease was primarily due to a $1.4 million decrease in interest earned on mortgage warehouse lines of credit and a $1.3 million decrease in interest income earned on PPP loans. The decreases in interest income earned on mortgage warehouse lines of credit and PPP loans were caused primarily by decreases in average loan balances of $154.0 million and $91.9 million, respectively, as the outstanding balances of PPP loans continued to be forgiven by the Small Business Administration ("SBA"), and higher interest rates had a negative impact on mortgage warehouse lines of credit.
The yield earned on interest-earning assets for the quarter ended March 31, 2022, was 3.13%, a decrease of 22 basis points compared to the linked quarter and a decrease of 45 basis points compared to the quarter ended March 31, 2021. Excluding PPP loans, the yield earned on LHFI was 3.95%, a one basis point increase compared to the linked quarter and a four basis point decrease compared to the quarter ended March 31, 2021. The rate paid on total deposits for the quarter ended March 31, 2022, was 0.17%, representing a two basis point decrease from the linked quarter and a nine basis point decrease compared to the quarter ended March 31, 2021. Combined interest-bearing balances due from banks and total investment securities represented 31.9% of the average interest-earning assets during the first quarter of 2022, compared to 27.3% and 17.6%, respectively, of the average assets during the linked quarter and the quarter ended March 31, 2021.
The fully tax-equivalent net interest margin (“NIM”) was 2.86% for the quarter ended March 31, 2022, a 20 basis point decrease and a 36 basis point decrease from the linked quarter and the quarter ended March 31, 2021, respectively. Excluding PPP loans, the fully tax-equivalent NIM was 2.76%, a 16 basis point decrease and a 39 basis point decrease from the linked quarter and the quarter ended March 31, 2021, respectively. The decrease in fully tax-equivalent NIM, excluding PPP loans, was primarily due to a surge in liquidity causing a shift in balance sheet composition which was primarily invested in comparatively lower-yielding interest-bearing balances due from banks and investment securities.
Credit Quality
The table below includes key credit quality information:
| At and for three months ended | $ Change | % Change | |||||||||||||||||||||||||||
| (Dollars in thousands) | March 31, 2022 | December 31, 2021 | March 31, 2021 | Linked Quarter | Linked Quarter | ||||||||||||||||||||||||
| Allowance for loan credit losses | $ | 62,173 | $ | 64,586 | $ | 85,136 | $ | (2,413) | (3.7) | % | |||||||||||||||||||
| Classified loans | 70,379 | 69,372 | 95,321 | 1,007 | 1.5 | ||||||||||||||||||||||||
| Total nonperforming LHFI | 21,181 | 24,903 | 33,358 | (3,722) | (14.9) | ||||||||||||||||||||||||
| Provision for credit losses | (327) | (2,647) | 1,412 | 2,320 | 87.6 | ||||||||||||||||||||||||
| Net charge-offs | 1,754 | 2,693 | 2,894 | (939) | (34.9) | ||||||||||||||||||||||||
Credit quality ratios(1): | |||||||||||||||||||||||||||||
| Allowance for loan credit losses to nonperforming LHFI | 293.53 | % | 259.35 | % | 255.22 | % | N/A | 3418 bp | |||||||||||||||||||||
| Allowance for loan credit losses to total LHFI | 1.20 | 1.23 | 1.46 | N/A | -3 bp | ||||||||||||||||||||||||
| Allowance for loan credit losses to total LHFI excluding warehouse loans | 1.33 | 1.43 | 2.02 | N/A | -10 bp | ||||||||||||||||||||||||
| Nonperforming LHFI to LHFI | 0.41 | 0.48 | 0.57 | N/A | -7 bp | ||||||||||||||||||||||||
| Net charge-offs to total average LHFI (annualized) | 0.14 | 0.21 | 0.21 | N/A | -7 bp | ||||||||||||||||||||||||
(1)Please see the Loan Data schedule at the back of this document for additional information.
The Company recorded a credit loss provision net benefit of $327,000 during the quarter ended March 31, 2022, compared to a credit loss provision net benefit of $2.6 million recorded during the linked quarter. The release of credit loss provision reflects improved credit loss metrics with no material adjustments to model assumptions based upon economic forecasts. As it pertains to economic forecasts, uncertainty remains due to risks related to rising inflation, market interest rate increases, labor pressures, continued global supply-chain disruptions, as well as increased geopolitical risks.
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Credit metrics improved at March 31, 2022, when compared to the linked quarter. The allowance for loan credit losses to nonperforming LHFI increased to 293.53% at March 31, 2022, compared to 259.35% at December 31, 2021. The Company’s nonperforming LHFI and quarterly net charge-offs improved to $21.2 million and $7.1 million (annualized), respectively, compared to $24.9 million and $10.7 million (annualized), respectively, at December 31, 2021. Classified loans increased $1.0 million at March 31, 2022, compared to December 31, 2021, and represented 1.36% of LHFI, excluding PPP loans, at March 31, 2022, compared to 1.35% at December 31, 2021.
Noninterest Income
Noninterest income for the quarter ended March 31, 2022, was $15.9 million, a decrease of $795,000, or 4.8%, from the linked quarter. The decrease from the linked quarter was primarily driven by decreases of $5.6 million and $413,000 in other noninterest income and limited partnership investment income, respectively, offset by increases of $3.6 million, $1.2 million, and $424,000 in insurance commission and fee income, mortgage banking revenue, and swap fee income, respectively.
The Company acquired the remaining 62% equity interest in the Lincoln Agency at December 31, 2021, and remeasured the previously held equity method investment to its fair value, resulting in recognition of a gain of $5.2 million in other noninterest income at December 31, 2021. As such, the $5.6 million decrease in other noninterest income for the quarter ended March 31, 2022, was primarily driven by this one time gain reflected in the prior quarter. The $3.6 million increase in insurance commission and fee income was primarily driven by seasonality, as there is typically higher insurance revenue in the first quarter of each year, and the acquisition of the remaining 62% in the Lincoln Agency and the acquisition of Pulley-White Insurance Agency, Inc, which significantly expanded the Company's insurance presence in the North Louisiana Market. The acquisitions contributed an additional $1.5 million to insurance commissions and fee income during the current quarter. The $1.2 million increase in mortgage banking revenue was primarily due to a gain on the pipeline in the current quarter, as well as a positive change due to improved value and performance on the mortgage servicing rights ("MSR") asset due primarily to increased market interest rates, net of MSR hedge performance. The $413,000 decrease in limited partnership investment income was primarily due to a decrease in the fair value of investments in one of the limited partnership funds during the current quarter. The $424,000 increase in swap fee income was primarily due to an election to unwind a one-way swap, resulting in an early termination cost of $296,000 during the quarter ended December 31, 2021, with no such termination during the current quarter.
Noninterest Expense
Noninterest expense for the quarter ended March 31, 2022, was $42.8 million, an increase of $2.4 million, compared to the linked quarter. This increase was primarily driven by increases of $1.7 million and $708,000 in salaries and employee benefit expenses and professional fees, respectively, offset by a $575,000 decrease in loan related expense.
The $1.7 million increase in salaries and employee benefit expense was primarily due to the insurance agency acquisitions that occurred on December 31, 2021. Additionally, bank salaries and benefits were higher due to a cost of living adjustment that occurred during the quarter ended March 31, 2022. Of the $708,000 increase in professional fees, $548,000 was directly related to transaction costs in the current quarter related to the pending merger with BTH Holdings. The decrease in loan related expense was primarily due to higher loan related legal expenses incurred during the quarter ended December 31, 2021.
Income Taxes
The effective tax rate was 20.4% during the quarter ended March 31, 2022, compared to 14.6% during the linked quarter and 19.1% during the quarter ended March 31, 2021. The change in the effective tax rate when comparing the three months ending March 31, 2022, to the linked quarter was primarily due to the tax impact of the exercise of stock options and vesting of stock awards during the three months ended December 31, 2021, which lowered the effective tax rate during the linked quarter. Additionally, the effective tax rate for the quarter ended March 31, 2022, was negatively impacted by the transaction costs associated with the BTH merger.
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Financial Condition
Loans
•Total LHFI decreased $36.9 million compared to the linked quarter and $655.4 million compared to March 31, 2021.
•Total LHFI, excluding PPP and mortgage warehouse lines of credit, were $4.66 billion at March 31, 2022, reflecting a $160.5 million, or 14.5% annualized increase, compared to the linked quarter and a $483.7 million, or 11.6% increase, compared to March 31, 2021.
•Mortgage warehouse lines of credit totaled $503.2 million at March 31, 2022, a decrease of $123.8 million, or 19.7%, compared to the linked quarter and a decrease of $587.1 million, or 53.8%, compared to March 31, 2021.
•Average LHFI decreased $26.7 million compared to the linked quarter and decreased $595.9 million compared to the quarter ended March 31, 2021.
•Average LHFI, excluding PPP and mortgage warehouse lines of credit, increased $219.2 million compared to the linked quarter and increased $437.3 million compared to the quarter ended March 31, 2021.
Total LHFI at March 31, 2022, were $5.19 billion, reflecting a decrease of 0.7% compared to the linked quarter and a decrease of 11.2% compared to March 31, 2021. The decrease in LHFI compared to the linked quarter was primarily driven by decreases in mortgage warehouse lines of credit and PPP loans, offset by increases in commercial real estate loans. PPP outstanding loan balances continued to decline primarily through the SBA’s forgiveness process and the outstanding balances of mortgage warehouse lines of credit were negatively impacted by higher market interest rates.
Securities
•Total securities increased $382.6 million compared to the linked quarter and increased $888.4 million compared to March 31, 2021. Total securities portfolio weighted average effective duration was 4.29 years as of 3/31/2022.
•Average securities increased $157.1 million compared to the linked quarter and increased $616.2 million compared to the quarter ended March 31, 2021.
Total securities at March 31, 2022, were $1.92 billion, increasing 24.9% and 86.3%, compared to the linked quarter and March 31, 2021, respectively. As discussed earlier, the increase in securities reflects a shift in balance sheet composition as liquidity continues to surge primarily due to declines in mortgage warehouse lines of credit and PPP loan balances and increases in deposits.
Deposits
•Total deposits increased $196.5 million and $421.0 million compared to the linked quarter and March 31, 2021, respectively.
•Interest-bearing deposits grew $83.7 million, or 2.2%, compared to December 31, 2021, and declined $14.4 million, or 0.4%, compared to March 31, 2021.
•Noninterest-bearing deposits grew $132.2 million, or 24.8%, compared to December 31, 2021, and $559.1 million, or 32.2%, compared to March 31, 2021.
Business depositors drove an increase of $126.4 million in noninterest-bearing demand deposits, while public fund deposits accounted for a $56.9 million increase in interest-bearing deposits compared to the linked quarter. Business depositors drove an increase of $623.9 million in total deposits offset by a $571.7 million decline in brokered deposits compared to March 31, 2021.
For the quarter ended March 31, 2022, average noninterest-bearing deposits as a percentage of total average deposits were 33.0%, compared to 33.6% for the linked quarter, and 29.0% for the quarter ended March 31, 2021.
Borrowings
Average Federal Home Loan Bank (“FHLB”) advances and other borrowings for the quarter ended March 31, 2022, decreased by $2.3 million or 0.8%, compared to the linked quarter, and by $292.3 million or 52.4%, compared to the quarter ended March 31, 2021. The changes in average FHLB advances and other borrowings from both the linked quarter and from the quarter ended March 31, 2021, were driven by short-term borrowing variations during the respective periods as a result of liquidity management.
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Stockholder’s Equity
Stockholders’ equity was $676.9 million at March 31, 2022, a decrease of $53.3 million compared to $730.2 million at December 31, 2021, and an increase of $20.5 million compared to $656.4 million at March 31, 2021. The decrease from the linked quarter was primarily due to a $71.6 million other comprehensive loss, net of tax, offset by net income for the quarter of $20.7 million. The securities portfolio ended the quarter with a net unrealized loss of $83.9 million, pre-tax, largely due to the steepening of the short end of the yield curve during the first quarter. The increase from March 31, 2021, was primarily driven by net income retained during the intervening period, and partially offset by other comprehensive loss, net of tax.
Book value and tangible book value were impacted by a decrease in accumulated other comprehensive loss, net of tax, experienced primarily on the Company's available for sale securities portfolio during the three months ended March 31, 2022. The accumulated other comprehensive loss, net of tax, was $65.9 million at March 31, 2022, compared to accumulated other comprehensive income, net of tax, of $5.7 million and $12.2 million at December 31, 2021 and March 31, 2021, respectively.
Conference Call
Origin will hold a conference call to discuss its first quarter 2022 results on Thursday, April 28, 2022, at 8:00 a.m. Central Time (9:00 a.m. Eastern Time). To participate in the live conference call, please dial (888) 437-3179 (U.S. and Canada); and (862) 298-0702 (International), 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://www.webcaster4.com/Webcast/Page/2864/45166.
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 45 banking centers located from Dallas/Fort Worth and Houston, Texas, across North Louisiana and into Mississippi. For more information, visit www.origin.bank.
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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 and efforts to respond to the COVID-19 pandemic and changes to interest rates by the Federal Reserve and the resulting impact on Origin’s results of operations, estimated forbearance amounts and expectations regarding the Company’s liquidity, including in connection with advances obtained from the FHLB, which are all subject to change and may be inherently unreliable due to the multiple factors that impact broader economic and industry trends, and any such changes may be material. Such forward-looking statements are based on various facts and derived utilizing important assumptions and current expectations, estimates and projections about Origin and its subsidiaries, any of which may change over time and some of which may be beyond Origin’s control. Statements or statistics preceded by, followed by or that otherwise include the words “assumes,” “anticipates,” “believes,” “estimates,” “expects,” “foresees,” “intends,” “plans,” “projects,” and similar expressions or future or conditional verbs such as “could,” “may,” “might,” “should,” “will,” and “would” and variations of such terms are generally forward-looking in nature and not historical facts, although not all forward-looking statements include the foregoing words. Further, certain factors that could affect Origin’s future results and cause actual results to differ materially from those expressed in the forward-looking statements include, but are not limited to: 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, (including the impact of higher interest rates on macroeconomic conditions, and customer and client behavior); the effectiveness of Origin’s risk management framework and quantitative models; the risk of widespread inflation; 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, including the impact of supply-chain disruptions and labor pressures; changes in Origin’s operation or expansion strategy or Origin’s ability to prudently manage its growth and execute its strategy; changes in management personnel; Origin’s ability to maintain important customer relationships, reputation or otherwise avoid liquidity risks; increasing costs as Origin grows deposits; operational risks associated with Origin’s business; volatility and direction of market interest rates; 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 transition away from the London Interbank Offered Rate (“LIBOR”) and the impact of any replacement alternatives such as the Secured Overnight Financing Rate (“SOFR”) on Origin’s business; possible changes in trade, monetary and fiscal policies, laws and regulations and other activities of governments, agencies and similar organizations; natural disasters and adverse weather events, acts of terrorism, an outbreak of hostilities (including the impacts related to or resulting from Russia's military action in Ukraine, including the imposition of additional sanctions and export controls, as well as the broader impacts to financial markets and the global macroeconomic and geopolitical environments, regional or national protests and civil unrest (including any resulting branch closures or property damage), widespread illness or public health outbreaks or other international or domestic calamities, and other matters beyond Origin’s control; 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 (“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
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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.
The risks relating to the proposed BTH merger include, without limitation, failure to obtain the approval of shareholders of BTH and Origin in connection with the merger; the timing to consummate the proposed merger; the risk that a condition to the closing of the proposed merger may not be satisfied; the risk that a regulatory approval that may be required for the proposed merger is not obtained or is obtained subject to conditions that are not anticipated; the parties' ability to achieve the synergies and value creation contemplated by the proposed merger; the parties' ability to promptly and effectively integrate the businesses of Origin and BTH, including unexpected transaction costs, the costs of integrating operations, severance, professional fees and other expenses; the diversion of management time on issues related to the merger; the failure to consummate or any delay in consummating the merger for other reasons; changes in laws or regulations; the risks of customer and employee loss and business disruption, including, without limitation, as the result of difficulties in maintaining relationships with employees; increased competitive pressures and solicitations of customers and employees by competitors; and the difficulties and risks inherent with entering new markets.
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, may continue to be amplified by or may, in the future, be amplified by the COVID-19 pandemic and the impact of varying governmental responses 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 purposes only, are not forecasts, and may not reflect actual results.
IMPORTANT ADDITIONAL INFORMATION AND WHERE TO FIND IT
In connection with Origin’s proposed merger with BT Holdings, Inc. ("BTH") (the “Transaction”), Origin has filed with the SEC a registration statement on Form S-4 that includes a joint proxy statement of Origin and BTH and a prospectus of Origin, as well as other relevant documents concerning the Transaction. Certain matters in respect of the Transaction involving BTH and Origin will be submitted to BTH’s and Origin’s shareholders for their consideration.
INVESTORS AND SECURITY HOLDERS ARE URGED TO READ THE REGISTRATION STATEMENT ON FORM S-4, THE JOINT PROXY STATEMENT/PROSPECTUS INCLUDED WITHIN THE REGISTRATION STATEMENT ON FORM S-4 AND ANY OTHER RELEVANT DOCUMENTS FILED OR TO BE FILED WITH THE SEC IN CONNECTION WITH THE PROPOSED TRANSACTION BECAUSE THESE DOCUMENTS DO AND WILL CONTAIN IMPORTANT INFORMATION ABOUT ORIGIN, BTH AND THE TRANSACTION.
Investors and security holders may obtain copies of these documents free of charge through the website maintained by the SEC at www.sec.gov or from Origin at its website, www.origin.bank. Documents filed with the SEC by Origin will be available free of charge by accessing Origin’s Investor Relations website at ir.origin.bank or, alternatively, by directing a request by mail or telephone to Origin Bancorp, Inc., 500 South Service Road East, Ruston, Louisiana 71270, Attn: Investor Relations, (318) 497-3177.
PARTICIPANTS IN THE SOLICITATION
Origin, BTH and certain of their respective directors and executive officers may be deemed to be participants in the solicitation of proxies from the shareholders of Origin and BTH in connection with the proposed transaction under the rules of the SEC. Certain information regarding the interests of these participants and a description of their direct and indirect interests, by security holdings or otherwise, will be included in the joint proxy statement/prospectus regarding the proposed transaction when it becomes available. Additional information about Origin, and its directors and executive officers, may be found in Origin’s definitive proxy statement relating to its 2022 Annual Meeting of Shareholders filed with the SEC on March 16, 2022, and other documents filed by Origin with the SEC. These documents can be obtained free of charge from the sources described above.
NO OFFER OR SOLICITATION
This communication is for informational purposes only and is not intended to and does not constitute an offer to sell, or the solicitation of an offer to subscribe for or buy, or a solicitation of any vote or approval in any jurisdiction, nor shall there be any sale, issuance or transfer of securities in any jurisdiction in which such offer, sale or solicitation would be unlawful,
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prior to registration or qualification under the securities laws of any such jurisdiction. No offer of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended, and otherwise in accordance with applicable law.
Contact:
Chris Reigelman, Origin Bancorp, Inc.
318-497-3177 / chris@origin.bank
8
Origin Bancorp, Inc.
Selected Quarterly Financial Data
| Three months ended | |||||||||||||||||||||||||||||
| March 31, 2022 | December 31, 2021 | September 30, 2021 | June 30, 2021 | March 31, 2021 | |||||||||||||||||||||||||
| Income statement and share amounts | (Dollars in thousands, except per share amounts, unaudited) | ||||||||||||||||||||||||||||
Net interest income | $ | 52,502 | $ | 54,180 | $ | 52,541 | $ | 54,292 | $ | 55,239 | |||||||||||||||||||
| Provision for credit losses | (327) | (2,647) | (3,921) | (5,609) | 1,412 | ||||||||||||||||||||||||
Noninterest income | 15,906 | 16,701 | 15,923 | 12,438 | 17,131 | ||||||||||||||||||||||||
| Noninterest expense | 42,774 | 40,346 | 39,165 | 37,832 | 39,436 | ||||||||||||||||||||||||
Income before income tax expense | 25,961 | 33,182 | 33,220 | 34,507 | 31,522 | ||||||||||||||||||||||||
| Income tax expense | 5,278 | 4,860 | 6,242 | 6,774 | 6,009 | ||||||||||||||||||||||||
Net income | $ | 20,683 | $ | 28,322 | $ | 26,978 | $ | 27,733 | $ | 25,513 | |||||||||||||||||||
PTPP earnings (1) | $ | 25,634 | $ | 30,535 | $ | 29,299 | $ | 28,898 | $ | 32,934 | |||||||||||||||||||
Basic earnings per common share | 0.87 | 1.21 | 1.15 | 1.18 | 1.09 | ||||||||||||||||||||||||
Diluted earnings per common share | 0.87 | 1.20 | 1.14 | 1.17 | 1.08 | ||||||||||||||||||||||||
| Dividends declared per common share | 0.13 | 0.13 | 0.13 | 0.13 | 0.10 | ||||||||||||||||||||||||
Weighted average common shares outstanding - basic | 23,700,550 | 23,484,056 | 23,429,705 | 23,410,693 | 23,393,356 | ||||||||||||||||||||||||
Weighted average common shares outstanding - diluted | 23,770,791 | 23,609,874 | 23,613,010 | 23,604,566 | 23,590,430 | ||||||||||||||||||||||||
Balance sheet data | |||||||||||||||||||||||||||||
Total LHFI | $ | 5,194,406 | $ | 5,231,331 | $ | 5,187,288 | $ | 5,396,306 | $ | 5,849,760 | |||||||||||||||||||
Total assets | 8,112,295 | 7,861,285 | 7,470,478 | 7,268,068 | 7,563,175 | ||||||||||||||||||||||||
| Total deposits | 6,767,179 | 6,570,693 | 6,158,768 | 6,028,352 | 6,346,194 | ||||||||||||||||||||||||
| Total stockholders’ equity | 676,865 | 730,211 | 705,667 | 688,235 | 656,355 | ||||||||||||||||||||||||
| Performance metrics and capital ratios | |||||||||||||||||||||||||||||
| Yield on LHFI | 4.08 | % | 4.11 | % | 4.05 | % | 4.00 | % | 4.03 | % | |||||||||||||||||||
| Yield on interest-earnings assets | 3.13 | 3.35 | 3.33 | 3.44 | 3.58 | ||||||||||||||||||||||||
| Cost of interest-bearing deposits | 0.26 | 0.28 | 0.30 | 0.31 | 0.37 | ||||||||||||||||||||||||
| Cost of total deposits | 0.17 | 0.19 | 0.21 | 0.22 | 0.26 | ||||||||||||||||||||||||
| Net interest margin, fully tax equivalent | 2.86 | 3.06 | 3.02 | 3.12 | 3.22 | ||||||||||||||||||||||||
Net interest margin, excluding PPP loans, fully tax equivalent (2) | 2.76 | 2.92 | 2.94 | 3.06 | 3.15 | ||||||||||||||||||||||||
| Return on average stockholders’ equity (annualized) | 11.61 | 15.70 | 15.21 | 16.54 | 15.73 | ||||||||||||||||||||||||
| Return on average assets (annualized) | 1.04 | 1.49 | 1.43 | 1.49 | 1.40 | ||||||||||||||||||||||||
PTPP return on average stockholders’ equity (annualized) (1) | 14.39 | 16.93 | 16.52 | 17.23 | 20.30 | ||||||||||||||||||||||||
PTPP return on average assets (annualized) (1) | 1.29 | 1.60 | 1.56 | 1.55 | 1.81 | ||||||||||||||||||||||||
Efficiency ratio (3) | 62.53 | 56.92 | 57.21 | 56.69 | 54.49 | ||||||||||||||||||||||||
Book value per common share(4) | $ | 28.50 | $ | 30.75 | $ | 30.03 | $ | 29.28 | $ | 27.94 | |||||||||||||||||||
Tangible book value per common share (1)(4) | 26.37 | 28.59 | 28.76 | 28.01 | 26.66 | ||||||||||||||||||||||||
Common equity tier 1 to risk-weighted assets (5) | 11.18 | % | 11.20 | % | 11.27 | % | 11.03 | % | 10.16 | % | |||||||||||||||||||
Tier 1 capital to risk-weighted assets (5) | 11.33 | 11.36 | 11.42 | 11.19 | 10.32 | ||||||||||||||||||||||||
Total capital to risk-weighted assets (5) | 14.62 | 14.77 | 14.95 | 14.85 | 13.92 | ||||||||||||||||||||||||
Tier 1 leverage ratio (5) | 8.83 | 9.20 | 9.20 | 8.87 | 8.67 | ||||||||||||||||||||||||
____________________________
(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 the last page of this release.
(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)A decline of $71.6 million in accumulated other comprehensive (loss) income negatively impacted total stockholders' equity and tangible common equity and caused book value per common share and tangible book value per common share to decline by $3.02 primarily due to the steepening of the short end of the yield curve during the first quarter and its impact on our investment portfolio.
(5)March 31, 2022, ratios are estimated and calculated at the Company level, which is subject to the capital adequacy requirements of the Federal Reserve Board.
9
Origin Bancorp, Inc.
Consolidated Quarterly Statements of Income
| Three months ended | |||||||||||||||||||||||||||||
| March 31, 2022 | December 31, 2021 | September 30, 2021 | June 30, 2021 | March 31, 2021 | |||||||||||||||||||||||||
| Interest and dividend income | (Dollars in thousands, except per share amounts, unaudited) | ||||||||||||||||||||||||||||
| Interest and fees on loans | $ | 51,183 | $ | 53,260 | $ | 53,182 | $ | 55,529 | $ | 56,810 | |||||||||||||||||||
| Investment securities-taxable | 5,113 | 4,691 | 3,449 | 3,115 | 3,300 | ||||||||||||||||||||||||
| Investment securities-nontaxable | 1,400 | 1,493 | 1,582 | 1,590 | 1,672 | ||||||||||||||||||||||||
| Interest and dividend income on assets held in other financial institutions | 587 | 686 | 538 | 414 | 345 | ||||||||||||||||||||||||
| Total interest and dividend income | 58,283 | 60,130 | 58,751 | 60,648 | 62,127 | ||||||||||||||||||||||||
| Interest expense | |||||||||||||||||||||||||||||
| Interest-bearing deposits | 2,886 | 2,957 | 3,255 | 3,417 | 3,789 | ||||||||||||||||||||||||
| FHLB advances and other borrowings | 1,094 | 1,161 | 1,118 | 1,106 | 1,269 | ||||||||||||||||||||||||
| Subordinated debentures | 1,801 | 1,832 | 1,837 | 1,833 | 1,830 | ||||||||||||||||||||||||
| Total interest expense | 5,781 | 5,950 | 6,210 | 6,356 | 6,888 | ||||||||||||||||||||||||
Net interest income | 52,502 | 54,180 | 52,541 | 54,292 | 55,239 | ||||||||||||||||||||||||
| Provision for credit losses | (327) | (2,647) | (3,921) | (5,609) | 1,412 | ||||||||||||||||||||||||
| Net interest income after provision for credit losses | 52,829 | 56,827 | 56,462 | 59,901 | 53,827 | ||||||||||||||||||||||||
| Noninterest income | |||||||||||||||||||||||||||||
| Service charges and fees | 3,998 | 3,994 | 3,973 | 3,739 | 3,343 | ||||||||||||||||||||||||
| Mortgage banking revenue | 4,096 | 2,857 | 2,728 | 2,765 | 4,577 | ||||||||||||||||||||||||
| Insurance commission and fee income | 6,456 | 2,826 | 3,451 | 3,050 | 3,771 | ||||||||||||||||||||||||
| Gain on sales of securities, net | — | 75 | — | 5 | 1,668 | ||||||||||||||||||||||||
| Loss on sales and disposals of other assets, net | — | (97) | (8) | (42) | (38) | ||||||||||||||||||||||||
| Limited partnership investment (loss) income | (363) | 50 | 3,078 | 801 | 1,772 | ||||||||||||||||||||||||
| Swap fee (loss) income | 139 | (285) | 727 | 24 | 348 | ||||||||||||||||||||||||
| Change in fair value of equity investments | — | — | 19 | — | — | ||||||||||||||||||||||||
| Other fee income | 598 | 702 | 783 | 623 | 771 | ||||||||||||||||||||||||
| Other income | 982 | 6,579 | 1,172 | 1,473 | 919 | ||||||||||||||||||||||||
| Total noninterest income | 15,906 | 16,701 | 15,923 | 12,438 | 17,131 | ||||||||||||||||||||||||
| Noninterest expense | |||||||||||||||||||||||||||||
| Salaries and employee benefits | 26,488 | 24,718 | 23,629 | 22,354 | 22,325 | ||||||||||||||||||||||||
| Occupancy and equipment, net | 4,427 | 4,306 | 4,353 | 4,349 | 4,339 | ||||||||||||||||||||||||
| Data processing | 2,486 | 2,302 | 2,329 | 2,313 | 2,173 | ||||||||||||||||||||||||
| Electronic banking | 917 | 616 | 997 | 989 | 961 | ||||||||||||||||||||||||
| Communications | 281 | 286 | 359 | 514 | 415 | ||||||||||||||||||||||||
| Advertising and marketing | 871 | 1,147 | 863 | 748 | 680 | ||||||||||||||||||||||||
| Professional services | 1,631 | 923 | 912 | 836 | 973 | ||||||||||||||||||||||||
| Regulatory assessments | 626 | 526 | 664 | 544 | 1,170 | ||||||||||||||||||||||||
| Loan related expenses | 1,305 | 1,880 | 1,949 | 2,154 | 1,705 | ||||||||||||||||||||||||
| Office and operations | 1,560 | 1,849 | 1,598 | 1,498 | 1,454 | ||||||||||||||||||||||||
| Intangible asset amortization | 537 | 194 | 194 | 222 | 234 | ||||||||||||||||||||||||
| Franchise tax expense | 770 | 692 | 598 | 629 | 619 | ||||||||||||||||||||||||
| Other expenses | 875 | 907 | 720 | 682 | 2,388 | ||||||||||||||||||||||||
| Total noninterest expense | 42,774 | 40,346 | 39,165 | 37,832 | 39,436 | ||||||||||||||||||||||||
| Income before income tax expense | 25,961 | 33,182 | 33,220 | 34,507 | 31,522 | ||||||||||||||||||||||||
| Income tax expense | 5,278 | 4,860 | 6,242 | 6,774 | 6,009 | ||||||||||||||||||||||||
| Net income | $ | 20,683 | $ | 28,322 | $ | 26,978 | $ | 27,733 | $ | 25,513 | |||||||||||||||||||
| Basic earnings per common share | $ | 0.87 | $ | 1.21 | $ | 1.15 | $ | 1.18 | $ | 1.09 | |||||||||||||||||||
| Diluted earnings per common share | 0.87 | 1.20 | 1.14 | 1.17 | 1.08 | ||||||||||||||||||||||||
10
Origin Bancorp, Inc.
Consolidated Balance Sheets
| (Dollars in thousands) | March 31, 2022 | December 31, 2021 | September 30, 2021 | June 30, 2021 | March 31, 2021 | |||||||||||||||||||||||||||
| Assets | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | ||||||||||||||||||||||||||||
| Cash and due from banks | $ | 129,825 | $ | 133,334 | $ | 124,515 | $ | 155,311 | $ | 64,330 | ||||||||||||||||||||||
| Interest-bearing deposits in banks | 454,619 | 572,284 | 227,450 | 289,421 | 200,571 | |||||||||||||||||||||||||||
| Total cash and cash equivalents | 584,444 | 705,618 | 351,965 | 444,732 | 264,901 | |||||||||||||||||||||||||||
| Securities: | ||||||||||||||||||||||||||||||||
| Available for sale | 1,905,687 | 1,504,728 | 1,486,543 | 973,948 | 980,132 | |||||||||||||||||||||||||||
| Held to maturity, net of allowance for credit losses | 4,831 | 22,767 | 37,702 | 37,835 | 37,983 | |||||||||||||||||||||||||||
| Securities carried at fair value through income | 7,058 | 7,497 | 10,876 | 10,973 | 11,077 | |||||||||||||||||||||||||||
| Total securities | 1,917,576 | 1,534,992 | 1,535,121 | 1,022,756 | 1,029,192 | |||||||||||||||||||||||||||
| Non-marketable equity securities held in other financial institutions | 45,242 | 45,192 | 45,144 | 41,468 | 47,274 | |||||||||||||||||||||||||||
| Loans held for sale | 80,295 | 80,387 | 109,956 | 124,710 | 144,950 | |||||||||||||||||||||||||||
| Loans | 5,194,406 | 5,231,331 | 5,187,288 | 5,396,306 | 5,849,760 | |||||||||||||||||||||||||||
| Less: allowance for loan credit losses | 62,173 | 64,586 | 69,947 | 77,104 | 85,136 | |||||||||||||||||||||||||||
| Loans, net of allowance for loan credit losses | 5,132,233 | 5,166,745 | 5,117,341 | 5,319,202 | 5,764,624 | |||||||||||||||||||||||||||
| Premises and equipment, net | 80,421 | 80,691 | 80,740 | 80,133 | 81,064 | |||||||||||||||||||||||||||
| Mortgage servicing rights | 21,187 | 16,220 | 16,000 | 16,081 | 17,552 | |||||||||||||||||||||||||||
| Cash surrender value of bank-owned life insurance | 38,547 | 38,352 | 38,162 | 37,959 | 37,757 | |||||||||||||||||||||||||||
| Goodwill and other intangible assets, net | 50,578 | 51,330 | 29,830 | 30,024 | 30,246 | |||||||||||||||||||||||||||
| Accrued interest receivable and other assets | 161,772 | 141,758 | 146,219 | 151,003 | 145,615 | |||||||||||||||||||||||||||
| Total assets | $ | 8,112,295 | $ | 7,861,285 | $ | 7,470,478 | $ | 7,268,068 | $ | 7,563,175 | ||||||||||||||||||||||
| Liabilities and Stockholders’ Equity | ||||||||||||||||||||||||||||||||
| Noninterest-bearing deposits | $ | 2,295,682 | $ | 2,163,507 | $ | 1,980,107 | $ | 1,861,016 | $ | 1,736,534 | ||||||||||||||||||||||
| Interest-bearing deposits | 3,947,714 | 3,864,058 | 3,600,654 | 3,554,427 | 3,962,082 | |||||||||||||||||||||||||||
| Time deposits | 523,783 | 543,128 | 578,007 | 612,909 | 647,578 | |||||||||||||||||||||||||||
| Total deposits | 6,767,179 | 6,570,693 | 6,158,768 | 6,028,352 | 6,346,194 | |||||||||||||||||||||||||||
| FHLB advances and other borrowings | 305,560 | 309,801 | 309,152 | 314,123 | 325,751 | |||||||||||||||||||||||||||
| Subordinated debentures | 157,478 | 157,417 | 157,357 | 157,298 | 157,239 | |||||||||||||||||||||||||||
| Accrued expenses and other liabilities | 205,213 | 93,163 | 139,534 | 80,060 | 77,636 | |||||||||||||||||||||||||||
| Total liabilities | 7,435,430 | 7,131,074 | 6,764,811 | 6,579,833 | 6,906,820 | |||||||||||||||||||||||||||
| Stockholders’ equity | ||||||||||||||||||||||||||||||||
Common stock | 118,744 | 118,733 | 117,480 | 117,511 | 117,444 | |||||||||||||||||||||||||||
| Additional paid-in capital | 242,789 | 242,114 | 237,928 | 237,338 | 236,934 | |||||||||||||||||||||||||||
| Retained earnings | 381,222 | 363,635 | 338,387 | 314,472 | 289,792 | |||||||||||||||||||||||||||
| Accumulated other comprehensive (loss) income | (65,890) | 5,729 | 11,872 | 18,914 | 12,185 | |||||||||||||||||||||||||||
| Total stockholders’ equity | 676,865 | 730,211 | 705,667 | 688,235 | 656,355 | |||||||||||||||||||||||||||
| Total liabilities and stockholders’ equity | $ | 8,112,295 | $ | 7,861,285 | $ | 7,470,478 | $ | 7,268,068 | $ | 7,563,175 | ||||||||||||||||||||||
11
Origin Bancorp, Inc.
Loan Data
| At and for the three months ended | |||||||||||||||||||||||||||||
| March 31, 2022 | December 31, 2021 | September 30, 2021 | June 30, 2021 | March 31, 2021 | |||||||||||||||||||||||||
| LHFI | (Dollars in thousands, unaudited) | ||||||||||||||||||||||||||||
| Commercial real estate | $ | 1,801,382 | $ | 1,693,512 | $ | 1,590,519 | $ | 1,480,536 | $ | 1,454,649 | |||||||||||||||||||
| Construction/land/land development | 593,350 | 530,083 | 518,920 | 497,170 | 548,236 | ||||||||||||||||||||||||
| Residential real estate | 922,054 | 909,739 | 913,411 | 966,301 | 904,753 | ||||||||||||||||||||||||
| Total real estate loans | 3,316,786 | 3,133,334 | 3,022,850 | 2,944,007 | 2,907,638 | ||||||||||||||||||||||||
| PPP | 32,154 | 105,761 | 216,957 | 369,910 | 584,148 | ||||||||||||||||||||||||
| Commercial and industrial | 1,326,443 | 1,348,474 | 1,218,246 | 1,200,881 | 1,250,350 | ||||||||||||||||||||||||
| Mortgage warehouse lines of credit | 503,249 | 627,078 | 713,339 | 865,255 | 1,090,347 | ||||||||||||||||||||||||
| Consumer | 15,774 | 16,684 | 15,896 | 16,253 | 17,277 | ||||||||||||||||||||||||
| Total LHFI | 5,194,406 | 5,231,331 | 5,187,288 | 5,396,306 | 5,849,760 | ||||||||||||||||||||||||
| Less: allowance for loan credit losses | 62,173 | 64,586 | 69,947 | 77,104 | 85,136 | ||||||||||||||||||||||||
| LHFI, net | $ | 5,132,233 | $ | 5,166,745 | $ | 5,117,341 | $ | 5,319,202 | $ | 5,764,624 | |||||||||||||||||||
| Nonperforming assets | |||||||||||||||||||||||||||||
| Nonperforming LHFI | |||||||||||||||||||||||||||||
| Commercial real estate | $ | 233 | $ | 512 | $ | 672 | $ | 1,544 | $ | 1,085 | |||||||||||||||||||
| Construction/land/land development | 256 | 338 | 592 | 621 | 2,431 | ||||||||||||||||||||||||
| Residential real estate | 11,609 | 11,647 | 9,377 | 10,571 | 10,692 | ||||||||||||||||||||||||
| Commercial and industrial | 8,987 | 12,306 | 13,873 | 17,723 | 19,094 | ||||||||||||||||||||||||
| Consumer | 96 | 100 | 41 | 43 | 56 | ||||||||||||||||||||||||
| Total nonperforming LHFI | 21,181 | 24,903 | 24,555 | 30,502 | 33,358 | ||||||||||||||||||||||||
| Nonperforming loans held for sale | 2,698 | 1,754 | 2,074 | 1,606 | 963 | ||||||||||||||||||||||||
| Total nonperforming loans | 23,879 | 26,657 | 26,629 | 32,108 | 34,321 | ||||||||||||||||||||||||
| Repossessed assets | 1,703 | 1,860 | 4,574 | 4,723 | 3,893 | ||||||||||||||||||||||||
| Total nonperforming assets | $ | 25,582 | $ | 28,517 | $ | 31,203 | $ | 36,831 | $ | 38,214 | |||||||||||||||||||
| Classified assets | $ | 72,082 | $ | 71,232 | $ | 80,165 | $ | 88,150 | $ | 99,214 | |||||||||||||||||||
Past due LHFI (1) | 21,753 | 25,615 | 25,954 | 30,446 | 26,574 | ||||||||||||||||||||||||
| Allowance for loan credit losses | |||||||||||||||||||||||||||||
| Balance at beginning of period | $ | 64,586 | $ | 69,947 | $ | 77,104 | $ | 85,136 | $ | 86,670 | |||||||||||||||||||
| Provision for loan credit losses | (659) | (2,668) | (4,266) | (5,224) | 1,360 | ||||||||||||||||||||||||
| Loans charged off | 2,402 | 3,162 | 3,035 | 3,010 | 3,027 | ||||||||||||||||||||||||
| Loan recoveries | 648 | 469 | 144 | 202 | 133 | ||||||||||||||||||||||||
| Net charge-offs | 1,754 | 2,693 | 2,891 | 2,808 | 2,894 | ||||||||||||||||||||||||
| Balance at end of period | $ | 62,173 | $ | 64,586 | $ | 69,947 | $ | 77,104 | $ | 85,136 | |||||||||||||||||||
12
Origin Bancorp, Inc.
Loan Data - Continued
| At and for the three months ended | |||||||||||||||||||||||||||||
| March 31, 2022 | December 31, 2021 | September 30, 2021 | June 30, 2021 | March 31, 2021 | |||||||||||||||||||||||||
| Credit quality ratios | (Dollars in thousands, unaudited) | ||||||||||||||||||||||||||||
| Total nonperforming assets to total assets | 0.32 | % | 0.36 | % | 0.42 | % | 0.51 | % | 0.51 | % | |||||||||||||||||||
| Total nonperforming loans to total loans | 0.45 | 0.50 | 0.50 | 0.58 | 0.57 | ||||||||||||||||||||||||
| Nonperforming LHFI to LHFI | 0.41 | 0.48 | 0.47 | 0.57 | 0.57 | ||||||||||||||||||||||||
| Past due LHFI to LHFI | 0.42 | 0.49 | 0.50 | 0.56 | 0.45 | ||||||||||||||||||||||||
| Allowance for loan credit losses to nonperforming LHFI | 293.53 | 259.35 | 284.86 | 252.78 | 255.22 | ||||||||||||||||||||||||
| Allowance for loan credit losses to total LHFI | 1.20 | 1.23 | 1.35 | 1.43 | 1.46 | ||||||||||||||||||||||||
Allowance for loan credit losses to total LHFI excluding PPP and warehouse loans (2) | 1.33 | 1.43 | 1.63 | 1.84 | 1.77 | ||||||||||||||||||||||||
| Net charge-offs to total average LHFI (annualized) | 0.14 | 0.21 | 0.22 | 0.20 | 0.21 | ||||||||||||||||||||||||
| Net charge-offs to total average LHFI (annualized), excluding PPP loans | 0.14 | 0.22 | 0.24 | 0.23 | 0.23 | ||||||||||||||||||||||||
____________________________
(1)Past due LHFI are defined as loans 30 days or more past due. There were $266,000 of past due PPP loans at September 30, 2021, that are fully guaranteed by the SBA. There were no past due PPP loans for the other disclosed quarterly period end dates included in this release.
(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. Due to their low-risk profile, mortgage warehouse loans require a disproportionately low allocation of the allowance for loan credit losses.
13
Origin Bancorp, Inc.
Average Balances and Yields/Rates
| Three months ended | |||||||||||||||||||||||||||||||||||
| March 31, 2022 | December 31, 2021 | March 31, 2021 | |||||||||||||||||||||||||||||||||
| Average Balance | Yield/Rate | Average Balance | Yield/Rate | Average Balance | Yield/Rate | ||||||||||||||||||||||||||||||
| Assets | (Dollars in thousands, unaudited) | ||||||||||||||||||||||||||||||||||
| Commercial real estate | $ | 1,718,259 | 4.02 | % | $ | 1,612,078 | 4.10 | % | $ | 1,421,819 | 4.16 | % | |||||||||||||||||||||||
| Construction/land/land development | 565,347 | 4.21 | 528,172 | 4.21 | 541,782 | 4.09 | |||||||||||||||||||||||||||||
| Residential real estate | 907,320 | 3.98 | 909,778 | 3.88 | 888,208 | 4.04 | |||||||||||||||||||||||||||||
| PPP | 70,442 | 13.83 | 162,340 | 9.19 | 565,653 | 4.40 | |||||||||||||||||||||||||||||
| Commercial and industrial, excluding PPP | 1,354,794 | 3.76 | 1,276,386 | 3.76 | 1,255,436 | 3.95 | |||||||||||||||||||||||||||||
| Mortgage warehouse lines of credit | 423,795 | 3.73 | 577,835 | 3.70 | 961,808 | 3.67 | |||||||||||||||||||||||||||||
| Consumer | 16,462 | 5.78 | 16,572 | 5.74 | 17,649 | 5.81 | |||||||||||||||||||||||||||||
| LHFI | 5,056,419 | 4.08 | 5,083,161 | 4.11 | 5,652,355 | 4.03 | |||||||||||||||||||||||||||||
| Loans held for sale | 32,710 | 3.27 | 47,352 | 5.20 | 87,177 | 2.71 | |||||||||||||||||||||||||||||
| Loans receivable | 5,089,129 | 4.08 | 5,130,513 | 4.12 | 5,739,532 | 4.01 | |||||||||||||||||||||||||||||
| Investment securities-taxable | 1,408,109 | 1.47 | 1,239,648 | 1.50 | 750,801 | 1.78 | |||||||||||||||||||||||||||||
| Investment securities-nontaxable | 253,875 | 2.24 | 265,261 | 2.23 | 295,000 | 2.30 | |||||||||||||||||||||||||||||
| Non-marketable equity securities held in other financial institutions | 45,205 | 1.93 | 45,153 | 4.16 | 60,326 | 1.45 | |||||||||||||||||||||||||||||
| Interest-bearing balances due from banks | 746,057 | 0.20 | 442,060 | 0.19 | 196,616 | 0.27 | |||||||||||||||||||||||||||||
| Total interest-earning assets | 7,542,375 | 3.13 | 7,122,635 | 3.35 | 7,042,275 | 3.58 | |||||||||||||||||||||||||||||
Noninterest-earning assets(1) | 502,871 | 436,935 | 340,220 | ||||||||||||||||||||||||||||||||
| Total assets | $ | 8,045,246 | $ | 7,559,570 | $ | 7,382,495 | |||||||||||||||||||||||||||||
| Liabilities and Stockholders’ Equity | |||||||||||||||||||||||||||||||||||
| Liabilities | |||||||||||||||||||||||||||||||||||
| Interest-bearing liabilities | |||||||||||||||||||||||||||||||||||
| Savings and interest-bearing transaction accounts | $ | 3,975,395 | 0.22 | % | $ | 3,616,101 | 0.23 | % | $ | 3,513,281 | 0.26 | % | |||||||||||||||||||||||
| Time deposits | 535,044 | 0.54 | 561,990 | 0.59 | 656,255 | 0.95 | |||||||||||||||||||||||||||||
| Total interest-bearing deposits | 4,510,439 | 0.26 | 4,178,091 | 0.28 | 4,169,536 | 0.37 | |||||||||||||||||||||||||||||
| FHLB advances and other borrowings | 265,472 | 1.67 | 267,737 | 1.72 | 557,798 | 0.92 | |||||||||||||||||||||||||||||
| Subordinated debentures | 157,455 | 4.64 | 157,395 | 4.62 | 157,221 | 4.72 | |||||||||||||||||||||||||||||
| Total interest-bearing liabilities | 4,933,366 | 0.48 | 4,603,223 | 0.51 | 4,884,555 | 0.57 | |||||||||||||||||||||||||||||
| Noninterest-bearing liabilities | |||||||||||||||||||||||||||||||||||
| Noninterest-bearing deposits | 2,218,092 | 2,110,816 | 1,700,523 | ||||||||||||||||||||||||||||||||
Other liabilities(1) | 171,284 | 129,917 | 139,554 | ||||||||||||||||||||||||||||||||
| Total liabilities | 7,322,742 | 6,843,956 | 6,724,632 | ||||||||||||||||||||||||||||||||
| Stockholders’ Equity | 722,504 | 715,614 | 657,863 | ||||||||||||||||||||||||||||||||
| Total liabilities and stockholders’ equity | $ | 8,045,246 | $ | 7,559,570 | $ | 7,382,495 | |||||||||||||||||||||||||||||
| Net interest spread | 2.65 | % | 2.84 | % | 3.01 | % | |||||||||||||||||||||||||||||
| Net interest margin | 2.82 | 3.02 | 3.18 | ||||||||||||||||||||||||||||||||
Net interest margin - (tax-equivalent)(2) | 2.86 | 3.06 | 3.22 | ||||||||||||||||||||||||||||||||
Net interest margin excluding PPP loans - (tax-equivalent)(3) | 2.76 | % | 2.92 | % | 3.15 | % | |||||||||||||||||||||||||||||
____________________________
(1)Includes Government National Mortgage Association (“GNMA”) repurchase average balances of $43.8 million, $45.2 million, and $59.0 million for the three months ended March 31, 2022, December 31, 2021, and March 31, 2021, 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
| At and for the three months ended | ||||||||||||||||||||||||||||||||
| March 31, 2022 | December 31, 2021 | September 30, 2021 | June 30, 2021 | March 31, 2021 | ||||||||||||||||||||||||||||
| Calculation of Tangible Common Equity: | (Dollars in thousands, except per share amounts, unaudited) | |||||||||||||||||||||||||||||||
| Total common stockholders’ equity | $ | 676,865 | $ | 730,211 | $ | 705,667 | $ | 688,235 | $ | 656,355 | ||||||||||||||||||||||
| Less: goodwill and other intangible assets, net | 50,578 | 51,330 | 29,830 | 30,024 | 30,246 | |||||||||||||||||||||||||||
| Tangible Common Equity | $ | 626,287 | $ | 678,881 | $ | 675,837 | $ | 658,211 | $ | 626,109 | ||||||||||||||||||||||
| Calculation of Tangible Book Value per Common Share: | ||||||||||||||||||||||||||||||||
| Divided by common shares outstanding at the end of the period | 23,748,748 | 23,746,502 | 23,496,058 | 23,502,215 | 23,488,884 | |||||||||||||||||||||||||||
| Tangible Book Value per Common Share | $ | 26.37 | $ | 28.59 | $ | 28.76 | $ | 28.01 | $ | 26.66 | ||||||||||||||||||||||
| Calculation of PTPP Earnings: | ||||||||||||||||||||||||||||||||
| Net Income | $ | 20,683 | $ | 28,322 | $ | 26,978 | $ | 27,733 | $ | 25,513 | ||||||||||||||||||||||
| Plus: provision for credit losses | (327) | (2,647) | (3,921) | (5,609) | 1,412 | |||||||||||||||||||||||||||
| Plus: income tax expense | 5,278 | 4,860 | 6,242 | 6,774 | 6,009 | |||||||||||||||||||||||||||
| PTPP Earnings | $ | 25,634 | $ | 30,535 | $ | 29,299 | $ | 28,898 | $ | 32,934 | ||||||||||||||||||||||
| Calculation of PTPP ROAA and PTPP ROAE: | ||||||||||||||||||||||||||||||||
| PTPP Earnings | $ | 25,634 | $ | 30,535 | $ | 29,299 | $ | 28,898 | $ | 32,934 | ||||||||||||||||||||||
| Divided by number of days in the quarter | 90 | 92 | 92 | 91 | 90 | |||||||||||||||||||||||||||
| Multiplied by the number of days in the year | 365 | 365 | 365 | 365 | 365 | |||||||||||||||||||||||||||
| Annualized PTPP Earnings | $ | 103,960 | $ | 121,144 | $ | 116,241 | $ | 115,910 | $ | 133,566 | ||||||||||||||||||||||
| Divided by total average assets | $ | 8,045,246 | $ | 7,559,570 | $ | 7,464,813 | $ | 7,474,951 | $ | 7,382,495 | ||||||||||||||||||||||
| PTPP ROAA (annualized) | 1.29 | % | 1.60 | % | 1.56 | % | 1.55 | % | 1.81 | % | ||||||||||||||||||||||
| Divided by total average stockholder’s equity | $ | 722,504 | $ | 715,614 | $ | 703,605 | $ | 672,698 | $ | 657,863 | ||||||||||||||||||||||
| PTPP ROAE (annualized) | 14.39 | % | 16.93 | % | 16.52 | % | 17.23 | % | 20.30 | % | ||||||||||||||||||||||
15
ORIGIN BANCORP, INC. _______ 1Q TWENTY22 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 changes to interest rates by the Federal Reserve and the resulting impact on Origin's results of operations, estimated forbearance amounts and expectations regarding the Company's liquidity, including in connection with advances obtained from the FHLB, which are all subject to change and may be inherently unreliable due to the multiple factors that impact broader economic and industry trends, and any such changes may be material. Such forward-looking statements are based on various facts and derived utilizing important assumptions and current expectations, estimates and projections about Origin and its subsidiaries, any of which may change over time and some of which may be beyond Origin's control. Statements or statistics preceded by, followed by or that otherwise include the words "assumes," "anticipates," "believes," "estimates," "expects," “foresees,” "intends," "plans," "projects," and similar expressions or future or conditional verbs such as "could," "may," “might,” "should," "will," and "would" and variations of such terms are generally forward-looking in nature and not historical facts, although not all forward-looking statements include the foregoing words. Further, certain factors that could affect the Company's future results and cause actual results to differ materially from those expressed in the forward-looking statements include, but are not limited to: 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 (including the impact of higher interest rates on macroeconomic conditions, and customer and client behavior); the effectiveness of Origin's risk management framework and quantitative models; the risk of widespread inflation; 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, including the impact of supply-chain disruptions and labor pressures; changes in Origin's operation or expansion strategy or Origin's ability to prudently manage its growth and execute its strategy; changes in management personnel; Origin's ability to maintain important customer relationships, reputation or otherwise avoid liquidity risks; increasing costs as Origin grows deposits; operational risks associated with Origin's business; volatility and direction of market interest rates; 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 transition away from the London Interbank Offered Rate ("LIBOR") and the impact of any replacement alternatives such as the Secured Overnight Financing Rate ("SOFR") on Origin's business; possible changes in trade, monetary, and fiscal policies, laws, and regulations and other activities of governments, agencies and similar organizations; natural disasters and adverse weather events, acts of terrorism, an outbreak of hostilities (including the impacts related to or resulting from Russia's military action in Ukraine, including the imposition of additional sanctions and export controls, as well as the broader impacts to financial markets and the global macroeconomic and geopolitical environments), regional or national protests and civil unrest (including any resulting branch closures or property damage), widespread illness or public health outbreaks or other international or domestic calamities, and other matters beyond Origin's control; 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. The risks relating to the proposed BTH merger include, without limitation, failure to obtain the approval of shareholders of BTH and Origin in connection with the merger; the timing to consummate the proposed merger; the risk that a condition to the closing of the proposed merger may not be satisfied; the risk that a regulatory approval that may be required for the proposed merger is not obtained or is obtained subject to conditions that are not anticipated; the parties' ability to achieve the synergies and value creation contemplated by the proposed merger; the parties' ability to promptly and effectively integrate the businesses of Origin and BTH, including unexpected transaction costs, the costs of integrating operations, severance, professional fees and other expenses; the diversion of management time on issues related to the merger; the failure to consummate or any delay in consummating the merger for other reasons; changes in laws or regulations; the risks of customer and employee loss and business disruption, including, without limitation, as the result of difficulties in maintaining relationships with employees; increased competitive pressures and solicitations of customers and employees by competitors; and the difficulties and risks inherent with entering new markets. 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, may continue to be amplified by, or may, in the future, be amplified by the COVID-19 pandemic and the impact of varying governmental responses 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 purposes only, are not forecasts, and may not reflect actual results. Certain prior period amounts have been reclassified to conform to the current year financial statement presentations. These reclassifications did not impact previously reported net income or comprehensive income. Origin reports its results in accordance with 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 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 • Total core deposits is calculated by subtracting brokered deposits and time deposits greater than $250,000 from total deposits. See slides 20-22 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 11 19 6 TEXAS Entry: DFW 2008 | Houston 2013 Loans: $2,772 Deposits: $3,180 LOUISIANA Entry: 1912 Loans: $1,350 Deposits: $2,958 DOLLARS IN MILLIONS, UNAUDITED (1) (2) 3 ORIGIN COMPANY SNAPSHOT • Origin Bancorp, Inc., the holding company for Origin Bank, is headquartered in Ruston, LA • Origin Bank was founded in 1912 • 45 banking centers operating across Texas, Louisiana & Mississippi DEPOSITS & LOANS BY STATE Note: All financial information is as of 03/31/22. (1) Non-market based deposits are not included in state deposits. (2) Excludes mortgage warehouse loans. MISSISSIPPI Entry: 2010 Loans: $569 Deposits: $628 9% 12% 44% 29% 47% 59% Loans (2)Deposits (1) ICS ICS
ORIGIN BANCORP, INC. _______ 4 A UNIQUE & DEFINED CULTURE
ORIGIN BANCORP, INC. _______ Balance Sheet 1Q22 4Q21 1Q21 Linked Qtr $ Δ Linked Qtr % Δ YoY $ Δ YoY % Δ Total Loans Held for Investment ("LHFI") $ 5,194,406 $ 5,231,331 $ 5,849,760 $ (36,925) (0.7) % $ (655,354) (11.2) % Total Assets 8,112,295 7,861,285 7,563,175 251,010 3.2 549,120 7.3 Total Deposits 6,767,179 6,570,693 6,346,194 196,486 3.0 420,985 6.6 Total Stockholders' Equity(1) 676,865 730,211 656,355 (53,346) (7.3) 20,510 3.1 Tangible Common Equity(1)(2) 626,287 678,881 626,109 (52,594) (7.7) 178 — Book Value per Common Share(1) 28.50 30.75 27.94 (2.25) (7.3) 0.56 2.0 Tangible Book Value per Common Share(1)(2) 26.37 28.59 26.66 (2.22) (7.8) (0.29) (1.1) Income Statement Net Interest Income 52,502 54,180 55,239 (1,678) (3.1) (2,737) (5.0) Provision for Credit Losses (327) (2,647) 1,412 2,320 87.6 (1,739) (123.2) Noninterest Income 15,906 16,701 17,131 (795) (4.8) (1,225) (7.2) Noninterest Expense 42,774 40,346 39,436 2,428 6.0 3,338 8.5 Net Income 20,683 28,322 25,513 (7,639) (27.0) (4,830) (18.9) Pre-Tax, Pre-Provision Earnings ("PTPP")(1) 25,634 30,535 32,934 (4,901) (16.1) (7,300) (22.2) Diluted EPS 0.87 1.20 1.08 (0.33) (27.5) (0.21) (19.4) Dividends Declared per Common Share 0.13 0.13 0.10 — — 0.03 30.0 Selected Ratios NIM - FTE 2.86 % 3.06 % 3.22 % -20 bp (6.5) -36 bp (11.2) Efficiency Ratio 62.53 56.92 54.49 561 bp 9.9 804 bp 14.8 ROAA (annualized) 1.04 1.49 1.40 -45 bp (30.2) -36 bp (25.7) ROAE (annualized) 11.61 15.70 15.73 -409 bp (26.1) -412 bp (26.2) PTPP ROAA (annualized)(1) 1.29 1.60 1.81 -31 bp (19.4) -52 bp (28.7) PTPP ROAE (annualized)(1) 14.39 16.93 20.30 -254 bp (15.0) -591 bp (29.1) DOLLARS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS, UNAUDITED 5 (1) A decline of $71.6 million in accumulated other comprehensive (loss) income negatively impacted total stockholders' equity and tangible common equity and caused book value per common share and tangible book value per common share to decline by $3.02 primarily due to the steepening of the short end of the yield curve during the first quarter and its impact on our investment portfolio. (2) As used in this presentation, tangible common equity, tangible book value per common share, PTPP, PTPP ROAA, and PTPP ROAE are non-GAAP financial measures. For a reconciliation of these non-GAAP financial measures to their comparable GAAP measures, see slides 20-22 of this presentation. FINANCIAL RESULTS - FIRST QUARTER 2022
ORIGIN BANCORP, INC. _______ TRENDING KEY MEASURES 47,785 2Q 18 3Q 18 4Q 18 1Q 19 2Q 19 3Q 19 4Q 19 1Q 20 2Q 20 3Q 20 4Q 20 1Q 21 2Q 21 3Q 21 4Q 21 1Q 22 Total Revenues ($) UNAUDITED Diluted EPS ($)Net Income ($) Total LHFI excluding PPP and MW LOC ($) Total Deposits ($) 0.53 0.87 2Q 18 3Q 18 4Q 18 1Q 19 2Q 19 3Q 19 4Q 19 1Q 20 2Q 20 3Q 20 4Q 20 1Q 21 2Q 21 3Q 21 4Q 21 1Q 22 12,702 2Q 18 3Q 18 4Q 18 1Q 19 2Q 19 3Q 19 4Q 19 1Q 20 2Q 20 3Q 20 4Q 20 1Q 21 2Q 21 3Q 21 4Q 21 1Q 22 3,672 6,767 2Q 18 3Q 18 4Q 18 1Q 19 2Q 19 3Q 19 4Q 19 1Q 20 2Q 20 3Q 20 4Q 20 1Q 21 2Q 21 3Q 21 4Q 21 1Q 22 4,659 2Q 18 3Q 18 4Q 18 1Q 19 2Q 19 3Q 19 4Q 19 1Q 20 2Q 20 3Q 20 4Q 20 1Q 21 2Q 21 3Q 21 4Q 21 1Q 22 DOLLARS IN THOUSANDS DOLLARS IN THOUSANDS DOLLARS IN MILLIONS DOLLARS IN MILLIONS Core Deposits ($)(1) 3,117 6,553 2Q 18 3Q 18 4Q 18 1Q 19 2Q 19 3Q 19 4Q 19 1Q 20 2Q 20 3Q 20 4Q 20 1Q 21 2Q 21 3Q 21 4Q 21 1Q 22 DOLLARS IN MILLIONS (1) As used in this presentation, core deposits is a non-GAAP financial measure. For a reconciliation of non-GAAP financial measures to their comparable GAAP measures, see slides 20-22 of this presentation. 6 20,612 68,408 3,102
ORIGIN BANCORP, INC. _______ TRENDING KEY MEASURES CONTINUED Pre-Tax Pre-Provision Earnings ($)(1) Efficiency Ratio (%) 62.53 2Q 18 3Q 18 4Q 18 1Q 19 2Q 19 3Q 19 4Q 19 1Q 20 2Q 20 3Q 20 4Q 20 1Q 21 2Q 21 3Q 21 4Q 21 1Q 22 UNAUDITED 15,773 2Q 18 3Q 18 4Q 18 1Q 19 2Q 19 3Q 19 4Q 19 1Q 20 2Q 20 3Q 20 4Q 20 1Q 21 2Q 21 3Q 21 4Q 21 1Q 22 Net Charge Offs ($) 121 1,754 2Q 18 3Q 18 4Q 18 1Q 19 2Q 19 3Q 19 4Q 19 1Q 20 2Q 20 3Q 20 4Q 20 1Q 21 2Q 21 3Q 21 4Q 21 1Q 22 Net Charge Offs to Total Average LHFI (%)(1) 0.01 0.14 2Q 18 3Q 18 4Q 18 1Q 19 2Q 19 3Q 19 4Q 19 1Q 20 2Q 20 3Q 21 4Q 20 1Q 21 2Q 21 3Q 21 4Q 21 1Q 22 DOLLARS IN THOUSANDS DOLLARS IN THOUSANDS Book Value per Common Share ($)(2) 22.10 2Q 18 3Q 18 4Q 18 1Q 19 2Q 19 3Q 19 4Q 19 1Q 20 2Q 20 3Q 20 4Q 20 1Q 21 2Q 21 3Q 21 4Q 21 1Q 22 21.07 2Q 18 3Q 18 4Q 18 1Q 19 2Q 19 3Q 19 4Q 19 1Q 20 2Q 20 3Q 20 4Q 20 1Q 21 2Q 21 3Q 21 4Q 21 1Q 22 Tangible Book Value per Common Share ($)(2)(3) (1) Annualized (2) A decline of $71.6 million in accumulated other comprehensive (loss) income negatively impacted total stockholders' equity and tangible common equity and caused book value per common share and tangible book value per common share to decline by $3.02 primarily due to the steepening of the short end of the yield curve during the first quarter and its impact on our investment portfolio. (3) As used in this presentation, PTPP and tangible book value per common share are non-GAAP financial measures. For a reconciliation of these non-GAAP financial measures to their comparable GAAP measures, see slides 20-22 of this presentation. 7 25,634 28.50 26.37 66.99
ORIGIN BANCORP, INC. _______ 8 1,741 1,956 2,247 2,620 2,750 1,067 1,127 1,343 1,545 1,549 674 829 904 1,075 1,200 DFW Houston 2018 2019 2020 2021 1Q2022 Deposit Trends by Texas Market ($) (2) Loan Trends by Texas Market ($) (1) TEXAS GROWTH STORY Texas Franchise Highlights DOLLARS IN MILLIONS, UNAUDITED • 20 branches throughout 5 counties in the 4th and 5th largest MSAs in the United States • Texas franchise represents 59% of LHFI, excluding mortgage warehouse loans, and 47% of deposits, excluding non-market-based deposits, at March 31, 2022 1,395 1,854 2,574 3,132 772 989 1,581 1,925 1,970623 865 993 1,207 1,210 DFW Houston 2018 2019 2020 2021 1Q2022 CAGR 15.1% CAGR 28.9% (1) Excludes PPP and mortgage warehouse loans. (2) Non-market based deposits are not included in state deposits. 3,180
ORIGIN BANCORP, INC. _______ 9 ORGANIC LOAN GROWTH 3,581 3,869 4,094 4,498 4,659 2018 2019 2020 2021 1Q2022 2,000 3,000 4,000 5,000 LHFI Key Data DOLLARS IN MILLIONS, UNAUDITED IDT • Remaining net deferred loan fees on PPP: $736,000 • Remaining PPP loan balances: $32.2 million • PPP total loan originations: $767.4 million • PPP percent of loans forgiven at 3/31/2022: 95.8% • Total forgiveness applied for at 3/31/2022: 97.9% 437 582632 • LHFI excluding PPP and mortgage warehouse lines of credit increased 30.1% from 12/31/2018, with a CAGR of 8.4%. Total C&I excluding PPP, owner occupied CRE and C&D increased 16.1% from 12/31/2018, with a CAGR of 4.7%. • Total LHFI at 3/31/2022, excluding mortgage warehouse lines of credit, were $4.66 billion, reflecting a $160.5 million, or 14.5% annualized, increase compared to the linked quarter. • Total mortgage warehouse lines of credit were $503.2 million, or 9.7%, of total LHFI at 3/31/2022. LHFI excluding MW LOC and PPP Growth ($) PPP Highlights CAGR: 8.4% 1,803 1,902 1,833 2,032 2,094 2018 2019 2020 2021 1Q2022 1,000 2,000 437 582632 C&I (excluding PPP), Owner Occupied CRE and C&D Growth ($) CAGR: 4.7%
ORIGIN BANCORP, INC. _______ Commercial & Industrial ("C&I") 26% Owner Occupied Construction/Land/ Land Development ("C&D"): 3% Owner Occupied Commercial Real Estate ("CRE"): 11% MW LOC: 10%Non-Owner Occupied C&D: 8% Non- Owner Occupied CRE: 24% Residential Real Estate & Consumer 18% MW LOC: 10% Real Estate & Construction: 9% Finance & Insurance: 6% Transportation: 4% Retail Dealer: 3% Restaurants: 2% Banks: 2% Professional Svcs: 2% Retail: 1% Materials&Commodities: 1% Customer Svcs: 1% Commercial Svcs: 1% Healthcare: 1% Entertainment: 1% Wholesale Distri.: 1%Misc: 5% Real Estate & Construction: 7% Retail Shopping: 6% Office Building: 6% Healthcare: 5% Multi-family: 2% Hotel: 1% Restaurant: 1% Finance & Insurance: 1% Misc: 3% 10 WELL DIVERSIFIED LOAN PORTFOLIO (Dollars in thousands) 1Q22 4Q21 3Q21 2Q21 1Q21 C&I excl. PPP $ 1,326,443 $ 1,348,474 $ 1,218,246 $ 1,200,881 $ 1,250,350 Owner Occupied CRE 588,279 523,655 473,558 457,895 483,624 Owner Occupied C&D 179,074 160,131 151,650 122,933 104,415 MW LOC 503,249 627,078 713,339 865,255 1,090,347 Total Commercial 2,597,045 2,659,338 2,556,793 2,646,964 2,928,736 Non-Owner Occupied CRE 1,213,103 1,169,857 1,116,961 1,022,641 971,025 Non-Owner Occupied C&D 414,276 369,952 367,270 374,237 443,821 Residential Real Estate 922,054 909,739 913,411 966,301 904,753 Consumer Loans 15,774 16,684 15,896 16,253 17,277 PPP Loans 32,154 105,761 216,957 369,910 584,148 Total Loans $ 5,194,406 $ 5,231,331 $ 5,187,288 $ 5,396,306 $ 5,849,760 Loan Portfolio Details Non-Owner Occupied CRE and C&D: (1) $1,627 C&I, Owner Occupied CRE and C&D, MW LOC: (1) $2,597 C&I, Owner Occupied CRE and C&D, MW LOC: 50% Non-Owner Occupied CRE and C&D: 32% (1) Does not include loans held for sale or PPP loans. Loan Composition at 03/31/2022: (1) $5,162 DOLLARS IN MILLIONS, UNAUDITED ILP
ORIGIN BANCORP, INC. _______ 11 3,076 3,547 3,658 3,616 3,976 1,701 1,838 1,966 2,111 2,218656 582 562 5355,870 6,244 6,206 6,289 6,729 Interest-bearing Noninterest-bearing Time Deposits Brokered 1Q21 2Q21 3Q21 4Q21 1Q22 Average Deposits ($) DEPOSIT TRENDS 0.95 0.78 0.67 0.59 0.54 0.37 0.31 0.30 0.28 0.26 0.26 0.22 0.21 0.19 0.17 Time Deposits Cost of Interest-bearing Deposits Cost of Total Deposits 1Q21 2Q21 3Q21 4Q21 1Q22 Deposit Cost Trends (QTD Annualized) (%) Time Deposit Repricing Schedule * Maturity Balance ($) WAR (%) 2Q22 144 0.39 3Q22 136 0.40 4Q22 73 0.46 1Q23 59 0.45 2Q23+ 112 0.88 Total 524 0.51 DOLLARS IN MILLIONS, UNAUDITED IDT * Projection is based upon March 31, 2022, time deposit balances. • Average noninterest-bearing deposits increased $107.3 million compared to the linked quarter and represented 33.0% of total average deposits. • Average brokered deposits were zero for 1Q22, and decreased by $436.6 million compared to 1Q21, based on a strategy to reduce non-core funding sources as PPP and mortgage warehouse balances declined. • Overall cost of total deposits has declined 34.6% since 1Q21. • There were $149.4 million in new and renewed CD's during 1Q22 with a weighted average interest rate of 0.20%. 437 227 632
ORIGIN BANCORP, INC. _______ 12 MOBILE FEATURE ADOPTION RATES(1) SUPPORTING OUR CUSTOMERS - LEVERAGING TECHNOLOGY ZELLE® USERS 29.1% GROWTH ZELLE® TRANSFERS 37.2% GROWTH 34.2% TRANSFER ADOPTION % ORIGIN BANK 29.2% INDUSTRY BENCHMARK 23.5% DEPOSIT ADOPTION % ORIGIN BANK 17.1% INDUSTRY BENCHMARK 7.0% BILL PAY ADOPTION % ORIGIN BANK 5.3% INDUSTRY BENCHMARK (1) All data provided by FIS Metrics Intelligence based upon asset size peer groups for the month of March 2022. REGISTERED APP USERS 13.0% GROWTH MOBILE DEPOSIT TRANSACTIONS 2.2% GROWTH Note: Growth rates compare March 2022 to March 2021. ILT
ORIGIN BANCORP, INC. _______ 1.81 1.66 1.52 1.35 1.36 Classified LHFI / Total LHFI excl. PPP Loans (%) Net Charge-Offs / Average LHFI excl. PPP Loans (annualized) (%) 1Q21 2Q21 3Q21 4Q21 1Q22 0.23 0.23 0.24 0.22 0.14 0.63 0.61 0.49 0.49 0.410.50 0.61 0.52 0.50 0.42 Nonperforming LHFI / LHFI excl. PPP loans (%) Past due LHFI / LHFI excl. PPP loans (%) 1Q21 2Q21 3Q21 4Q21 1Q22 13 CREDIT QUALITY Asset Quality Trends (%) Allowance for Loan Credit Losses ("ALCL") 85,136 77,104 69,947 64,586 62,173 1.46 1.43 1.35 2.02 1.84 1.63 1.43 1.33 ALCL ($) ALCL as a percentage of LHFI (%) ALCL as a percentage of LHFI excl. PPP and MW LOC (%) • Provision for credit losses for 1Q22 was a net benefit of $327,000, compared to a net benefit of $2.6 million in 4Q21, and provision expense of $1.4 million in 1Q21. The decrease in the provision release is primarily due to growth in the LHFI, excluding MW lines of credit. • Total nonperforming LHFI to total LHFI was 0.41% at March 31, 2022, the lowest level since the Company's IPO in 2018. • ALCL to nonperforming LHFI is 293.53% at 1Q22, 259.35% at 4Q21, and 255.22 at 1Q21. DOLLARS IN THOUSANDS, UNAUDITED 1.201.23
ORIGIN BANCORP, INC. _______ 14 LHFI: Fixed \ Variable (by Index) at 03/31/2022 Fixed: 45% Floating: 55% YIELDS, COSTS AND LHFI PROFILE Yield on LHFI (%) 4.03 4.00 4.05 4.11 4.08 3.99 3.97 3.98 3.94 3.95 3.25 3.25 3.25 3.25 3.29 0.12 0.10 0.09 0.09 0.23 Yield on LHFI Yield on LHFI excl. PPP Loans Avg. Prime Rate Avg. 1M LIBOR 1Q21 2Q21 3Q21 4Q21 1Q22 Cost of Funds (%) 0.42 0.38 0.37 0.34 0.330.37 0.26 0.26 0.17 Cost of Total Deposits & Borrowings Cost of Interest Bearing Deposits Cost of Total Deposits 1Q21 2Q21 3Q21 4Q21 1Q22 0.22 0.21 Impact of Floors on 1M LIBOR & Prime Indexed Loans(1) $1.95 billion - total $1.32 billion 100% Beta $633 million "in the money" floors 0.19 0.31 0.30 0.28 $1,319 $248 $99 $147 $22 $117 At O r Abo ve Fl oo rs Belo w Fl oo r B y 1-2 5 b ps Belo w Fl oo r B y 26 -50 bp s Belo w Fl oo r B y 51 -75 bp s Belo w Fl oo r B y 76 -10 0 b ps Belo w Fl oo r B y >1 00 bp s $0 $1,000 $2,000 $3,000 67.6% 12.7% 5.1% 7.5% 1.1% 6.0% (1) Excluding Mortgage Warehouse Lines of Credit.
ORIGIN BANCORP, INC. _______ 15 DOLLARS IN THOUSANDS, UNAUDITED 55,239 54,292 52,541 54,180 52,502 40,394 41,323 42,884 45,035 46,2028,707 7,416 5,962 5,385 3,897 6,138 5,553 3,695 3,760 2,403 3.22 3.12 3.02 3.06 2.86 3.06 2.97 2.87 2.85 Net Interest Income excl. PPP & MW LOC ($) MW LOC Net Interest Income ($) PPP Net Interest Income ($) NIM (FTE) (%) NIM (FTE) excl. PPP & MW LOC (%) 1Q21 2Q21 3Q21 4Q21 1Q22 • NIM (FTE) excluding PPP and mortgage warehouse lines of credit decreased by 15 basis points to 2.70% in 1Q22 from 4Q21, driven primarily by excess liquidity migrating into comparatively lower interest-earning investment securities and balances due from banks. • Net forgiven PPP deferred loans fees contributed $2.1 million to net interest income in 1Q22. • NIM (FTE) was 2.86% in 1Q22, compared to 3.06% in 4Q21. NET INTEREST INCOME AND NIM TRENDS 46,202 45,035 472 329 326 159 128 11 (258) 4Q 21 C&I E xc l P PP Inv es tm en t S ec . RE Lo an s IB B al. D ue F ro m B an ks Tim e D ep os its Othe r Non -M ar k. Equ ity S ec .- Othe r F in. In sti . 1Q 22 44,000 46,000 2.70 2.85 0.03 0.01 (0.01) (0.02) (0.04) (0.12) 4Q 21 Othe r C&I e xc l. P PP Tim e D ep os its Non -M ar k. Equ ity Sec .-O the r F in. In sti . Inv es tm en t S ec . IB B al. D ue Fr om B an ks 1Q 22 2.70 2.80 2.90 Net Interest Income Changes Excl. PPP and MW LOC - 1Q22 ($)(1) NIM Changes Excl. PPP and MW LOC - 1Q22 (%) INIM 2.70 (1) Net interest income decreased $1.3 million due to two fewer days in the current period when compared to the linked period.
ORIGIN BANCORP, INC. _______ $1,046 $1,030 $1,133 $1,505 $1,662 1.93% 1.83% 1.76% 1.63% 1.59% Total Securities Yield 1Q21 2Q21 3Q21 4Q21 1Q22 Investment Securities Average Balance and Yield INVESTMENT SECURITIES DOLLARS IN MILLIONS, UNAUDITED • The securities portfolio ended the quarter with a net unrealized loss of $83.9 million, pre-tax, largely due to the steepening of the short end of the yield curve during the first quarter. • The average balance of investment securities increased $157.1 million. Investment security purchases exceeded $400 million during Q12022, with a weighted average yield of 1.97%. The majority of these purchases were during the end of the quarter. • Total portfolio weighted average effective duration was 4.29 years as of 3/31/2022. 16 $12.2 $18.9 $11.9 $5.7 $(65.9) 1Q21 2Q21 3Q21 4Q21 1Q22 Accumulated Other Comprehensive (Loss) Income(1) Sector Fair Value % Market Price WAL Effective Duration Treasury/ Agency $ 261.0 13.7 % 97.45 3.07 3.07 MBS 810.5 42.5 97.42 5.14 3.99 CMO 249.0 13.1 96.77 5.47 3.62 Municipal 420.6 22.1 101.00 8.66 6.40 Corporate/ Other 164.6 8.6 97.42 5.85 3.48 Total $ 1,905.7 100 % 98.13 5.86 4.29 Available for Sale Securities (1) The accumulated other comprehensive (loss) income primarily represents the unrealized loss, net of tax benefit, of available for sale securities and is a component of equity.
ORIGIN BANCORP, INC. _______ Service Charges & Fees Mortgage Banking Revenue Insurance Commission & Fee Income Other 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 17 Net Interest Income Noninterest Income 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 Noninterest Income ($) Net Interest Income + Noninterest Income ($) NET REVENUE DISTRIBUTION DOLLARS IN THOUSANDS, UNAUDITED Components of Other Noninterest Income • The insurance agency acquisitions contributed $1.5 million in additional insurance and fee income during 1Q22 • Track record of sustained growth in income streams • Diverse noninterest income sources • First quarter mortgage banking income benefited from a $1.2 million increase in the pipeline valuation. 68,408 10,615 1Q22 4Q21 3Q21 2Q21 1Q21 Gain on Fair Value of Lincoln Agency $ — $ 5,200 $ — $ — $ — Limited Partnership Investment Income (363) 50 3,078 801 1,772 Swap Fee (loss) Income(1) 139 (285) 727 24 348 Valuation Income (151) 11 (145) 125 (224) Gain on Sale of Securities — 75 — 5 1,668 Other 1,731 1,973 2,111 1,929 1,876 Total $ 1,356 $ 7,024 $ 5,771 $ 2,884 $ 5,440 (1) To benefit future income, the Company elected to unwind a one-way swap during the quarter ended December 31, 2021, and paid an early termination fee of $296,000. 47,785 15,906
ORIGIN BANCORP, INC. _______ 39,436 37,832 39,165 40,346 42,774 22,325 22,354 23,629 24,718 26,488 4,339 4,349 4,353 4,306 4,427 2,173 2,313 2,329 2,302 2,486 1,705 2,154 1,949 1,880 1,305 1,454 1,498 1,598 1,849 1,5607,440 5,164 5,307 5,291 6,508 Salaries and Employee Benefits Occupancy and Equipment, net Data Processing Loan-related Expenses Office and Operations Other 1Q21 2Q21 3Q21 4Q21 1Q22 18 • Salaries and employee benefits increased in 1Q22 compared to 4Q21 by $1.8 million, primarily due to the Lincoln Agency and Pulley-White acquisitions and a cost of living adjustment. • Included in other expenses in 1Q22 were $548,000 of transaction costs related to the pending merger with BTH Holdings, Inc. • The focus remains on our technology strategy to build efficient scale to support additional organic growth and continue to create operational efficiencies. E FF IC IE N C Y R A TI O (% ) 2.69 2.38 2.28 2.16 2.17 2.03 2.08 2.12 2.16 65.69 58.47 56.41 57.86 54.49 56.69 57.21 56.92 62.53 1Q20 2Q20 4Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 45 60 75 90 1.5 2.0 2.5 Operating Leverage (%) NONINTEREST EXPENSE ANALYSIS N IE / AV E R A G E A S S E TS (% ) DOLLARS IN THOUSANDS, UNAUDITED Noninterest Expense Composition ($)
ORIGIN BANCORP, INC. _______ 8.7 8.9 9.2 9.2 8.8 9.0 9.2 9.5 9.7 9.3 Company Level Bank Level 1Q21 2Q21 3Q21 4Q21 1Q22 10.3 11.2 11.4 11.4 11.310.7 11.6 11.8 12.0 11.9 Company Level Bank Level 1Q21 2Q21 3Q21 4Q21 1Q22 19 CAPITAL Bank Level Company Level Sub-debt Impact 13.9 14.9 15.0 14.8 14.6 13.1 13.9 14.0 14.1 13.9 Company Level Bank Level 1Q21 2Q21 3Q21 4Q21 1Q22 Tier 1 Capital to Average Assets (Leverage Ratio) Changes - 1Q22 (%)(1) 9.20 0.28 0.18 0.01 (0.13) (0.15) (0.20) (0.36) 4Q 21 Net Inc om e W H LO C Othe r CRE Othe r A ss ets AFS S ec uri tie s Int ere st- be ari ng ba nk ba lan ce s 1Q 22 8.00 9.00 10.00 ICap ICap Total Capital to Risk-Weighted Assets (%)(1)Tier 1 Capital to Risk-Weighted Assets (%)(1) Tier 1 Capital to Average Assets (Leverage Ratio) (%)(1) (1) March 31, 2022, ratios are estimated. 8.83
ORIGIN BANCORP, INC. _______ Calculation of Core Deposits: 1Q22 4Q21 3Q21 2Q21 1Q21 4Q20 3Q20 2Q20 Total Deposits $ 6,767,179 $ 6,570,693 $ 6,158,768 $ 6,028,352 $ 6,346,194 $ 5,751,315 $ 5,935,925 $ 5,372,222 Less: Brokered Deposits — — — — 571,673 431,180 835,902 490,881 Less: Time Deposits > $250K 213,861 222,656 245,312 264,566 276,629 271,272 275,112 311,256 Core Deposits $ 6,553,318 $ 6,348,037 $ 5,913,456 $ 5,763,786 $ 5,497,892 $ 5,048,863 $ 4,824,911 $ 4,570,085 1Q20 4Q19 3Q19 2Q19 1Q19 4Q18 3Q18 2Q18 Total Deposits $ 4,556,246 $ 4,228,612 $ 4,284,317 $ 3,855,012 $ 3,898,248 $ 3,783,138 $ 3,727,158 $ 3,672,097 Less: Brokered Deposits 435,138 152,556 330,370 139,181 327,693 332,341 278,784 239,818 Less: Time Deposits > $250K 309,918 319,055 341,728 349,262 356,298 364,080 343,082 315,741 Core Deposits $ 3,811,190 $ 3,757,001 $ 3,612,219 $ 3,366,569 $ 3,214,257 $ 3,086,717 $ 3,105,292 $ 3,116,538 Calculation of PTPP Earnings: 1Q22 4Q21 3Q21 2Q21 1Q21 4Q20 3Q20 2Q20 Net Income $ 20,683 $ 28,322 $ 26,978 $ 27,733 $ 25,513 $ 17,552 $ 13,095 $ 4,957 Plus: Provision for Credit Losses (327) (2,647) (3,921) (5,609) 1,412 6,333 13,633 21,403 Plus: Income Tax Expense 5,278 4,860 6,242 6,774 6,009 4,431 3,206 786 PTPP Earnings $ 25,634 $ 30,535 $ 29,299 $ 28,898 $ 32,934 $ 28,316 $ 29,934 $ 27,146 1Q20 4Q19 3Q19 2Q19 1Q19 4Q18 3Q18 2Q18 Net Income $ 753 $ 12,827 $ 14,617 $ 12,283 $ 14,155 $ 13,178 $ 12,318 $ 12,702 Plus: Provision for Credit Losses 18,531 2,377 4,201 1,985 1,005 1,723 504 311 Plus: Income Tax Expense (427) 3,175 3,620 2,782 3,089 2,725 2,568 2,760 PTPP Earnings $ 18,857 $ 18,379 $ 22,438 $ 17,050 $ 18,249 $ 17,626 $ 15,390 $ 15,773 20 DOLLARS IN THOUSANDS, UNAUDITED RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
ORIGIN BANCORP, INC. _______ Calculation of Tangible Book Value per Common Share(1): 1Q22 4Q21 3Q21 2Q21 1Q21 Total Common Stockholders' Equity $ 676,794 $ 730,211 $ 705,667 $ 688,235 $ 656,355 Less: Goodwill and Other Intangible Assets, net 50,578 51,330 29,830 30,024 30,246 Tangible Common Equity $ 626,216 $ 678,881 $ 675,837 $ 658,211 $ 626,109 Divided by Common Shares Outstanding at the End of the Period 23,748,748 23,746,502 23,496,058 23,502,215 23,488,884 Tangible Book Value per Common Share $ 26.37 $ 28.59 $ 28.76 $ 28.01 $ 26.66 4Q20 3Q20 2Q20 1Q20 4Q19 Total Common Stockholders' Equity $ 647,150 $ 627,637 $ 614,781 $ 606,631 $ 599,362 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 $ 567,822 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 3Q19 2Q19 1Q19 4Q18 3Q18 Total Common Stockholders' Equity $ 588,363 $ 584,293 $ 568,122 $ 549,779 $ 531,919 Less: Goodwill and Other Intangible Assets, net 31,842 32,144 32,497 32,861 33,228 Tangible Common Equity $ 556,521 $ 552,149 $ 535,625 $ 516,918 $ 498,691 Divided by Common Shares Outstanding at the End of the Period 23,481,781 23,774,238 23,745,985 23,726,559 23,621,235 Tangible Book Value per Common Share $ 23.70 $ 23.22 $ 22.56 $ 21.79 $ 21.11 2Q18 Total Common Stockholders' Equity $ 519,356 Less: Goodwill and Other Intangible Assets, net 24,113 Tangible Common Equity $ 495,243 Divided by Common Shares Outstanding at the End of the Period 23,504,063 Tangible Book Value per Common Share $ 21.07 21 DOLLARS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS, UNAUDITED RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (1) A decline of $71.6 million in accumulated other comprehensive (loss) income negatively impacted total stockholders' equity and tangible common equity during 1Q22 and caused book value per common share and tangible book value per common share to decline by $3.02 primarily due to the steepening of the short end of the yield curve during the first quarter and its impact on our investment portfolio.
ORIGIN BANCORP, INC. _______ 1Q22 4Q21 1Q21 Calculation of PTPP Earnings: Net Income $ 20,683 $ 28,322 $ 25,513 Plus: Provision for Credit Losses (327) (2,647) 1,412 Plus: Income Tax Expense 5,278 4,860 6,009 PTPP Earnings $ 25,634 $ 30,535 $ 32,934 Calculation of PTPP ROAA and PTPP ROAE: PTPP Earnings $ 25,634 $ 30,535 $ 32,934 Divided by Number of Days in the Quarter 90 92 90 Multiplied by the Number of Days in the Year 365 365 365 Annualized PTPP Earnings $ 103,960 $ 121,144 $ 133,566 Divided by Total Average Assets $ 8,045,246 $ 7,559,570 $ 7,382,495 PTPP ROAA (Annualized) 1.29 % 1.60 % 1.81 % Divided by Total Average Stockholder's Equity $ 722,504 $ 715,614 $ 657,863 PTPP ROAE (Annualized) 14.39 % 16.93 % 20.30 % 22 DOLLARS IN THOUSANDS, UNAUDITED RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
ORIGIN BANCORP, INC. _______ IMPORTANT ADDITIONAL INFORMATION AND WHERE TO FIND IT In connection with Origin’s proposed merger with BT Holdings, Inc. ("BTH") (the “Transaction”), Origin has filed with the SEC a registration statement on Form S-4 that includes a joint proxy statement of Origin and BTH and a prospectus of Origin, as well as other relevant documents concerning the Transaction. Certain matters in respect of the Transaction involving BTH and Origin will be submitted to BTH’s and Origin’s shareholders for their consideration. INVESTORS AND SECURITY HOLDERS ARE URGED TO READ THE REGISTRATION STATEMENT ON FORM S-4, THE JOINT PROXY STATEMENT/PROSPECTUS INCLUDED WITHIN THE REGISTRATION STATEMENT ON FORM S-4 AND ANY OTHER RELEVANT DOCUMENTS FILED OR TO BE FILED WITH THE SEC IN CONNECTION WITH THE PROPOSED TRANSACTION BECAUSE THESE DOCUMENTS DO AND WILL CONTAIN IMPORTANT INFORMATION ABOUT ORIGIN, BTH AND THE TRANSACTION. Investors and security holders may obtain copies of these documents free of charge through the website maintained by the SEC at www.sec.gov or from Origin at its website, www.origin.bank. Documents filed with the SEC by Origin will be available free of charge by accessing Origin’s Investor Relations website at ir.origin.bank or, alternatively, by directing a request by mail or telephone to Origin Bancorp, Inc., 500 South Service Road East, Ruston, Louisiana 71270, Attn: Investor Relations, (318) 497-3177. PARTICIPANTS IN THE SOLICITATION Origin, BTH and certain of their respective directors and executive officers may be deemed to be participants in the solicitation of proxies from the shareholders of Origin and BTH in connection with the proposed transaction under the rules of the SEC. Certain information regarding the interests of these participants and a description of their direct and indirect interests, by security holdings or otherwise, will be included in the joint proxy statement/prospectus regarding the proposed transaction when it becomes available. Additional information about Origin, and its directors and executive officers, may be found in Origin’s definitive proxy statement relating to its 2022 Annual Meeting of Shareholders filed with the SEC on March 16, 2022, and other documents filed by Origin with the SEC. These documents can be obtained free of charge from the sources described above. NO OFFER OR SOLICITATION This communication is for informational purposes only and is not intended to and does not constitute an offer to sell, or the solicitation of an offer to subscribe for or buy, or a solicitation of any vote or approval in any jurisdiction, nor shall there be any sale, issuance or transfer of securities in any jurisdiction in which such offer, sale or solicitation would be unlawful, prior to registration or qualification under the securities laws of any such jurisdiction. No offer of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended, and otherwise in accordance with applicable law. 23 INFORMATION REGARDING PENDING ACQUISITION OF BT HOLDINGS, INC.
Exhibit 99.3
FOR IMMEDIATE RELEASE
April 27, 2022
Origin Bancorp, Inc. Announces Declaration of Quarterly Cash Dividend
RUSTON, LOUISIANA (April 27, 2022) - Origin Bancorp, Inc. (Nasdaq: OBNK) ("Origin"), the holding company for Origin Bank, today announced that on April 27, 2022, its board of directors declared a quarterly cash dividend of $0.15 per share of its common stock. The cash dividend will be paid on May 31, 2022, to stockholders of record as of the close of business on May 17, 2022.
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 45 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 coronavirus ("COVID-19") pandemic and efforts to contain its transmission, 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 and any related future economic stimulus legislation and the effects of the foregoing on the Company’s business and customers; other legislative changes generally; changes in policies by regulatory agencies; fluctuations in interest rates; the risks of lending and investing activities, including changes in the level and direction of loan delinquencies and write-offs and changes in estimates of the adequacy of the allowance for loan losses; the Company's ability to access cost-effective funding; fluctuations in real estate values and both residential and commercial real estate market conditions; demand for loans and deposits in the Company's market area; competition; and changes in management’s business strategies and other factors set forth in the Company's filings with the SEC.
The Company does not undertake and specifically declines any obligation - to update or revise any forward-looking statements to reflect events or circumstances that occur after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.
Contact Information
Investor Relations
Chris Reigelman
318-497-3177
chris@origin.bank
Media Contact
Ryan Kilpatrick
318-232-7472
rkilpatrick@origin.bank