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 October 26, 2022, Origin Bancorp, Inc. (the "Company" or the "Registrant") issued a press release announcing its third 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, October 27, 2022, at 8:00 a.m. Central Time, the Company will host an investor conference call and webcast to review its third quarter 2022 financial results. The webcast will include presentation materials, which consist of information regarding the Company's results of operations and financial performance. The presentation materials will be posted on the Company's website on October 26, 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 October 26, 2022, the Company issued a press release announcing that the board of directors of the Company declared a quarterly cash dividend of $0.15 per share of its common stock. The cash dividend will be paid on November 30, 2022, to stockholders of record as of the close of business on November 16, 2022. The press release is attached hereto as Exhibit 99.3, and 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: October 26, 2022 | ORIGIN BANCORP, INC. | |||||||
By: /s/ William J. Wallace, IV | ||||||||
| William J. Wallace, IV | ||||||||
| Senior Executive Officer and Chief Financial Officer | ||||||||
Exhibit 99.1
For Immediate Release
ORIGIN BANCORP, INC. REPORTS EARNINGS FOR THIRD QUARTER 2022
RUSTON, Louisiana (October 26, 2022) - Origin Bancorp, Inc. (Nasdaq: OBNK) (“Origin” or the “Company”), the holding company for Origin Bank (the “Bank”), today announced net income of $16.2 million, or $0.57 diluted earnings per share for the quarter ended September 30, 2022, compared to $21.3 million, or $0.90 diluted earnings per share, for the quarter ended June 30, 2022, and compared to net income of $27.0 million, or $1.14 diluted earnings per share for the quarter ended September 30, 2021. Adjusted net income(1) for the quarter ended September 30, 2022, was $31.1 million, or $1.09 adjusted diluted earnings per share(1). Pre-tax, pre-provision net income ("PTPP")(1) was $36.0 million.
"This was a significant and exciting quarter for Origin as we showed strong core profitability and completed the merger with BT Holdings,” said Drake Mills, chairman, president and CEO of Origin Bancorp, Inc. “Origin now has meaningful expansion across the I-20 corridor in East Texas and adds impressive depth in Dallas and Fort Worth.”
(1) Adjusted net income, adjusted diluted earnings per share and PTPP are non-GAAP financial measures, please see the last few pages of this document for a reconciliation of these alternative financial measures to their comparable GAAP measures.
Third Quarter Financial Highlights
•On August 1, 2022, the Company completed its previously announced merger with BT Holdings, Inc., (“BTH”). As a result of the merger with BTH, the Company recorded a $14.9 million provision expense for loan credit losses for the Current Expected Credit Loss ("CECL") requirement on non-Purchased Credit Deteriorated ("PCD") loans, along with a $5.5 million allowance for loan credit losses on PCD loans. In total, the Company incurred $18.5 million in merger-related expenses during the quarter ended September 30, 2022, which includes the $14.9 million provision expense for loan credit losses.
•The Company's annualized returns on average assets ("ROA") and average equity ("ROE") were 0.70% and 6.86%, respectively, for the quarter ended September 30, 2022. Additionally, the Company's annualized adjusted returns on average assets ("Adjusted ROA") and adjusted return on average equity ("Adjusted ROE") were 1.34% and 13.14%, respectively, for the quarter ended September 30, 2022.
•Net interest income for the quarter ended September 30, 2022, was $78.5 million, reflecting a $19.0 million, or 32.0% increase, compared to the linked quarter, and a $26.0 million, or 49.5% increase, compared to the prior year quarter.
•The fully tax-equivalent net interest margin (“NIM”) was 3.68% for the quarter ended September 30, 2022, reflecting a 45 basis point increase from the linked quarter and a 66 basis point increase from the quarter ended September 30, 2021. The fully tax-equivalent NIM, excluding the net purchase accounting accretion (“PAA”) from the net interest income for the quarter ended September 30, 2022, was 3.61%.
•Total loans held for investment (“LHFI”) at September 30, 2022, were $6.88 billion. Adjusting for the impact of the BTH merger, and excluding mortgage warehouse lines of credit, loan growth during the quarter was $215.3 million, or 3.5%.
•Provision for credit losses was a net expense of $16.9 million for the quarter ended September 30, 2022, compared to a net expense of $3.5 million and a net benefit of $3.9 million for the linked quarter and the quarter ended September 30, 2021, respectively. The increase was primarily due to the merger with BTH, which required a Day 1 CECL loan provision of $14.9 million.
•The allowance for loan credit losses ("ALCL") to LHFI was 1.21% at September 30, 2022, compared to 1.14% at June 30, 2022. The ALCL to LHFI, adjusted(2) was 1.29% at September 30, 2022, compared to 1.25% at June 30, 2022.
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•Total nonperforming LHFI to total LHFI was 0.20% at September 30, 2022, compared to 0.25% at June 30, 2022, and 0.47% at September 30, 2021, reflecting a 20.0% and 57.4% decrease in the ratio when compared to the linked quarter and prior year quarter, respectively. The ALCL to nonperforming LHFI was 594.1% at September 30, 2022, compared to 448.2% and 284.9% at the linked quarter and prior year quarter, respectively.
(2) The ALCL to total LHFI, adjusted, is calculated at September 30, 2022, by excluding the ALCL for warehouse loans from the total LHFI ALCL in the numerator and excluding the warehouse loans from the LHFI in the denominator. For the periods prior to September 30, 2022, it is calculated by excluding the ALCL for warehouse loans from the total LHFI ALCL in the numerator and excluding the PPP and warehouse loans from the LHFI in the denominator. Due to their low-risk profile, mortgage warehouse loans require a disproportionately low allocation of the ALCL and PPP loans are fully guaranteed by the Small Business Administration ("SBA").
Results of Operations for the Three Months Ended September 30, 2022
Net Interest Income and Net Interest Margin
Net interest income for the quarter ended September 30, 2022, was $78.5 million, an increase of $19.0 million, or 32.0%, compared to the linked quarter. Purchase accounting accretion on acquired loans was $1.2 million during the current quarter, with remaining purchase accounting net loan discounts totaling $3.9 million at September 30, 2022. Net purchase accounting accretion income on deposits and sub-debt totaled $228,000, bringing the total impact from purchase accounting treatment on net interest income to $1.4 million for the three months ended September 30, 2022. Excluding the net purchase accounting accretion, the increase in net interest income was almost equally due to increases in average interest-earning assets and increases in market interest rates, partially offset by higher interest expense primarily due to rate increases on average savings and interest-bearing deposit balances and borrowings, as explained further in the paragraph below.
The table below presents the estimated loan and deposit accretion and sub-debt amortization schedule resulting from the BTH merger purchase accounting adjustments for the periods shown.
| Loan Accretion Income | Deposit Accretion Income | Sub-Debt Amortization Expense | Total Expected Impact to Net Interest Income | ||||||||||||||||||||
| 3Q2022 (actual, realized) | $ | 1,187 | $ | 238 | $ | (10) | $ | 1,415 | |||||||||||||||
| 4Q2022 (estimated) | $ | 1,653 | $ | 250 | $ | (15) | $ | 1,888 | |||||||||||||||
| For the years ending (estimated): | |||||||||||||||||||||||
| 2023 | 2,023 | 218 | (62) | 2,179 | |||||||||||||||||||
| Thereafter | 223 | 23 | (706) | (460) | |||||||||||||||||||
| Total remaining purchase accounting adjustment at September 30, 2022 | $ | 3,899 | $ | 491 | $ | (783) | $ | 3,607 | |||||||||||||||
The increase in net interest income for the three-month period ended September 30, 2022, was the result of a $25.4 million increase in total interest income partially offset by a $6.4 million increase in interest expense. Increases in market interest rates drove a $13.6 million increase in total interest income, while increases in average interest-earning assets drove an $11.8 million increase in total interest income. The increase in interest expense was primarily due to market rate increases, which drove a $4.2 million increase in interest expense on deposits and a $1.0 million increase in interest expense on FHLB advances and subordinated debt.
The Federal Reserve Board sets various benchmark rates, including the Federal Funds rate, and thereby influences the general market rates of interest, including the loan and deposit rates offered by financial institutions. In early 2020, the Federal Reserve lowered the target rate range to 0.00% to 0.25%. These rates remained in effect throughout all of 2021. On March 17, 2022, the target rate range was increased to 0.25% to 0.50%, then subsequently increased four more times during 2022, with the most recent and current Federal Funds target rate range being set at September 21, 2022, to 3.00% to 3.25%. At September 30, 2022, the Federal Funds target rate range had increased 300 basis points on a year-to-date basis. Increases in market interest rates contributed $11.6 million to the total increase in interest income earned on total LHFI, while market interest rates increased our total deposit interest expense by $4.2 million during the current quarter compared to the linked quarter.
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The yield on LHFI was 4.94% and 4.26% for the three months ended September 30, 2022, and June 30, 2022, respectively, and average LHFI balances increased to $6.39 billion for the quarter ended September 30, 2022, compared to $5.24 billion for the linked quarter. The yield on total investment securities was 2.12% for the three months ended September 30, 2022, compared to 1.85% for the linked quarter. Additionally, the rate on interest-bearing deposits increased to 0.64% for the quarter ended September 30, 2022, compared to 0.29% for the quarter ended June 30, 2022, and average interest-bearing deposit balances increased to $4.83 billion from $4.27 billion for the linked quarter. Average balances of subordinated debentures also increased to $186.8 million for the quarter ended September 30, 2022, compared to $157.5 million for the linked quarter due to subordinated indebtedness assumed in the merger, and reflected a rate of 4.81% for the current quarter compared to 4.64% for the linked quarter.
The fully tax-equivalent NIM was 3.68% for the quarter ended September 30, 2022, a 45 basis point increase and a 66 basis point increase compared to the linked quarter and the prior year quarter, respectively. The yield earned on interest-earning assets for the quarter ended September 30, 2022, was 4.23%, an increase of 70 basis points and an increase of 90 basis points compared to the linked quarter and the prior year quarter, respectively. The rate paid on total deposits for the quarter ended September 30, 2022, was 0.41%, representing a 22 basis point increase from the linked quarter and a 20 basis point increase compared to the prior year quarter. The rate paid on subordinated debentures also increased to 4.81%, reflecting a 17 and an 18 basis point increase compared to the linked quarter and prior year quarter, respectively. The net increase in accretion income due to the BTH merger increased the fully tax-equivalent NIM by approximately seven basis points during the current quarter.
Credit Quality
The table below includes key credit quality information:
| At and For the Three Months Ended | $ Change | % Change | |||||||||||||||||||||
| (Dollars in thousands) | September 30, 2022 | June 30, 2022 | Linked Quarter | Linked Quarter | |||||||||||||||||||
| Past due LHFI | $ | 10,866 | $ | 7,186 | $ | 3,680 | 51.2 | % | |||||||||||||||
| ALCL | 83,359 | 63,123 | 20,236 | 32.1 | |||||||||||||||||||
| Classified loans | 69,781 | 52,115 | 17,666 | 33.9 | |||||||||||||||||||
| Total nonperforming LHFI | 14,031 | 14,085 | (54) | (0.4) | |||||||||||||||||||
| Provision for credit losses | 16,942 | 3,452 | 13,490 | 390.8 | |||||||||||||||||||
| Net charge-offs | 1,078 | 1,553 | (475) | (30.6) | |||||||||||||||||||
Credit quality ratios(1): | |||||||||||||||||||||||
| ALCL to nonperforming LHFI | 594.11 | % | 448.16 | % | N/A | 14595 bp | |||||||||||||||||
| ALCL to total LHFI | 1.21 | 1.14 | N/A | 7 bp | |||||||||||||||||||
ALCL to total LHFI, adjusted(2) | 1.29 | 1.25 | N/A | 4 bp | |||||||||||||||||||
| Nonperforming LHFI to LHFI | 0.20 | 0.25 | N/A | -5 bp | |||||||||||||||||||
| Net charge-offs to total average LHFI (annualized) | 0.07 | 0.12 | N/A | -5 bp | |||||||||||||||||||
(1)Please see the Loan Data schedule at the back of this document for additional information.
(2)The ALCL to total LHFI, adjusted, is calculated at September 30, 2022, by excluding the ALCL for warehouse loans from the total LHFI ALCL in the numerator and excluding the warehouse loans from the LHFI in the denominator. For the periods prior to September 30, 2022, it is calculated by excluding the ALCL for warehouse loans from the total LHFI ALCL in the numerator and excluding the PPP and warehouse loans from the LHFI in the denominator. Due to their low-risk profile, mortgage warehouse loans require a disproportionately low allocation of the ALCL and PPP loans are fully guaranteed by the SBA.
The Company recorded a credit loss provision of $16.9 million during the quarter ended September 30, 2022, compared to a credit loss provision of $3.5 million recorded during the linked quarter. The increase is primarily due to the merger with BTH, completed on August 1, 2022, which required a Day 1 CECL loan provision of $14.9 million. The remaining $2.1 million provision for credit losses in excess of the loan credit loss provision recorded in conjunction with the BTH merger was primarily due to a $1.2 million provision expense for off-balance sheet items due to an increase in unfunded loan commitments unrelated to those acquired in the BTH merger.
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Overall, absent the impact of the BTH merger and its effect on the following: provision of $14.9 million, classified loans of $17.5 million, past due loans of $3.1 million, and nonperforming LHFI of $3.0 million, most credit metrics improved at September 30, 2022, when compared to the linked quarter. The ALCL to nonperforming LHFI increased to 594.1% at September 30, 2022, compared to 448.2% at June 30, 2022, driven by the $20.2 million increase in the Company’s ALCL for the quarter, which was predominately driven by the BTH merger. Quarterly net charge-offs decreased to $1.1 million from $1.6 million for the linked quarter, decreasing to 0.07% (annualized) to total average LHFI for the quarter ending September 30, 2022, compared to 0.12% (annualized) for the quarter ending June 30, 2022. Also, primarily due to the BTH merger, classified loans increased $17.7 million at September 30, 2022, compared to the linked quarter and represented 1.01% of LHFI, at September 30, 2022, compared to 0.94% at June 30, 2022. The ALCL to total LHFI increased to 1.21% at September 30, 2022, compared to 1.14% at June 30, 2022.
Noninterest Income
Noninterest income for the quarter ended September 30, 2022, was $13.7 million, a decrease of $493,000, or 3.5%, from the linked quarter. The decrease from the linked quarter was primarily driven by decreases of $3.3 million in mortgage banking revenue, offset by an increase of $1.7 million in gain on sales of securities, net.
The $3.3 million decrease in mortgage banking revenue compared to the linked quarter was primarily driven by an 11% reduction in origination volume, a 30% reduction in sales volume and a 45% reduction in sales margin experienced in the current quarter. Also contributing to the decline was a $2.0 million impairment of the GNMA MSR portfolio.
The gain on sales of securities, net, increased $1.7 million when compared to the quarter ended June 30, 2022, due to the sale of primarily legacy BTH securities during the current quarter as a result of investment strategy and liquidity management. The proceeds from the sale were primarily used to pay down our short-term FHLB borrowings.
Noninterest Expense
Noninterest expense for the quarter ended September 30, 2022, was $56.2 million, an increase of $12.1 million compared to the linked quarter. The increase from the linked quarter was primarily driven by increases of $4.5 million, $2.8 million and $1.3 million in salaries and employee benefits expense, merger-related expenses, and intangible asset amortization expense, respectively.
The $4.5 million increase in salaries and employee benefits expense was primarily driven by the addition of 123 full-time equivalent employees due to the BTH merger, which contributed $2.3 million to the total increase. Additionally, incentive accruals increased by $995,000 due to exceeding performance metrics during the period. We made the decision last quarter to implement inflationary raises for a large segment of our employees.
Merger-related expenses associated with the BTH merger were $3.6 million during the current quarter.
The $1.3 million increase in intangible asset amortization expense was due to the core deposit intangible established in conjunction with the BTH merger.
Income Taxes
The effective tax rate was 14.8% during the quarter ended September 30, 2022, compared to 18.4% during the linked quarter and 18.8% during the quarter ended September 30, 2021. The effective tax rate for the quarter ended September 30, 2022, was lower due to tax-exempt items having a larger than proportional effect on the Company's effective income tax rate as income before taxes was lower for the quarter ended September 30, 2022, compared to both the linked quarter and same quarter last year primarily due to merger-related expense during the current quarter.
Financial Condition
Loans
•Total LHFI increased $1.35 billion compared to the linked quarter and $1.70 billion compared to September 30, 2021.
•On August 1, 2022, we acquired $1.24 billion in loans, net of fair value adjustments, from BTH.
•Adjusting for the impact of BTH and excluding mortgage warehouse loans, loan growth during the current quarter totaled $215.3 million, or 3.5%, when compared to the linked quarter.
•Mortgage warehouse lines of credit totaled $460.6 million at September 30, 2022, a decrease of $71.3 million, or 13.4%, compared to the linked quarter and a decrease of $252.8 million, or 35.4%, compared to September 30, 2021.
•Total LHFI at September 30, 2022, were $6.88 billion, reflecting an increase of 24.5% compared to the linked quarter and 32.7% compared to September 30, 2021.
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Securities
•Total securities at September 30, 2022, were $1.69 billion, a decrease of $125.5 million, or 6.9%, compared to the linked quarter and an increase of $154.7 million, or 10.1%, compared to September 30, 2021.
•The fair value of acquired BTH securities totaled $456.8 million.
•The Company sold $447.5 million of primarily legacy BTH available for sale ("AFS") securities during the quarter ended September 30, 2022, and used the majority of the funds to pay down short-term Federal Home Loan Bank ("FHLB") advances.
•The steepening of the short end of the yield curve during the year-to-date 2022 period negatively impacted the fair value of the AFS portfolio and caused an accumulated other comprehensive loss of $175.2 million, $59.3 million of which was recorded during the current quarter.
•The total securities portfolio effective duration was 5.2 years as of September 30, 2022, compared to 4.4 years as of June 30, 2022.
Deposits
•Total deposits increased $1.47 billion compared to the linked quarter and increased $1.62 billion compared to September 30, 2021, respectively.
•The merger with BTH reflected the addition of $1.57 billion of deposits, net of fair value adjustments, at August 1, 2022, and contributed $865.9 million in interest-bearing demand, $398.1 million in noninterest-bearing and $302.5 million in time deposits.
•Adjusting for the impact of BTH, deposits decreased $139.7 million during the quarter ended September 30, 2022, compared to June 30, 2022, and grew $4.7 million compared to September 30, 2021. The quarterly decrease was due in large part to one customer moving deposits out of the bank due to a business transaction combined with our strategic decision to allow some non-core funding to leave the bank.
•For both the quarter ended September 30, 2022, and the linked quarter, average noninterest-bearing deposits as a percentage of total average deposits were 34.9% compared to 31.7% for the quarter ended September 30, 2021.
Borrowings
•The Company assumed $37.6 million of subordinated promissory notes ("Notes") from BTH in conjunction with the merger, $10.1 million in repurchase agreements with former BTH depositors and $7.2 million in junior subordinated debt.
•During the quarter ended September 30, 2022, short-term FHLB advances decreased from $600.0 million to $150.0 million. As mentioned above, the Company sold primarily legacy BTH AFS securities during the quarter ended September 30, 2022, and used the majority of the funds to pay down short-term FHLB advances.
Stockholders’ Equity
•Stockholders’ equity was $907.0 million at September 30, 2022, an increase of $260.7 million compared to $646.4 million at June 30, 2022, and an increase of $201.4 million compared to $705.7 million at September 30, 2021.
•The increase in stockholders’ equity is primarily associated with the BTH merger, which drove a $306.3 million increase in stockholders' equity and net income for the quarter of $16.2 million. These increases were partially offset by a $59.3 million other comprehensive loss, net of tax, and dividend during the current quarter of $4.6 million.
•Book value and tangible book value were negatively impacted by an accumulated other comprehensive loss, net of tax, experienced primarily on the Company's AFS securities portfolio of $175.2 million at September 30, 2022, with $59.3 million of the loss recorded during the current quarter.
Conference Call
Origin will hold a conference call to discuss its third quarter 2022 results on Thursday, October 27, 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/2864/46747.
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.
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About Origin
Origin Bancorp, Inc. is a financial holding company headquartered in Ruston, Louisiana. Origin’s wholly owned bank subsidiary, Origin Bank, was founded in 1912 in Choudrant, Louisiana. Deeply rooted in Origin’s history is a culture committed to providing personalized, relationship banking to businesses, municipalities, and personal clients to enrich the lives of the people in the communities it serves. Origin provides a broad range of financial services and currently operates 59 banking centers located from Dallas/Fort Worth, East Texas and Houston, 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; developments in our mortgage banking business, including loan modifications, general demand, and the effects of judicial or regulatory requirements or guidance; 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; significant turbulence or a disruption in the capital or financial markets and the effect of a fall in stock market prices on our investment securities; 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
7
anticipates. Accordingly, you should not place undue reliance on any forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made, and Origin does not undertake any obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise.
New risks and uncertainties arise from time to time, and it is not possible for Origin to predict those events or how they may affect Origin. In addition, Origin cannot assess the impact of each factor on Origin’s business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. All forward-looking statements, expressed or implied, included in this communication are expressly qualified in their entirety by this cautionary statement. This cautionary statement should also be considered in connection with any subsequent written or oral forward-looking statements that Origin or persons acting on Origin’s behalf may issue. Annualized, pro forma, adjusted, projected, and estimated numbers are used for illustrative purposes only, are not forecasts, and may not reflect actual results.
Contact:
Investor Relations
Chris Reigelman
318-497-3177
chris@origin.bank
Media Contact
Ryan Kilpatrick
318-232-7472
rkilpatrick@origin.bank
8
Origin Bancorp, Inc.
Selected Quarterly Financial Data
| Three Months Ended | |||||||||||||||||||||||||||||
| September 30, 2022 | June 30, 2022 | March 31, 2022 | December 31, 2021 | September 30, 2021 | |||||||||||||||||||||||||
| Income statement and share amounts | (Dollars in thousands, except per share amounts, unaudited) | ||||||||||||||||||||||||||||
Net interest income | $ | 78,523 | $ | 59,504 | $ | 52,502 | $ | 54,180 | $ | 52,541 | |||||||||||||||||||
| Provision for credit losses | 16,942 | 3,452 | (327) | (2,647) | (3,921) | ||||||||||||||||||||||||
Noninterest income | 13,723 | 14,216 | 15,906 | 16,701 | 15,923 | ||||||||||||||||||||||||
| Noninterest expense | 56,241 | 44,150 | 42,774 | 40,346 | 39,165 | ||||||||||||||||||||||||
Income before income tax expense | 19,063 | 26,118 | 25,961 | 33,182 | 33,220 | ||||||||||||||||||||||||
| Income tax expense | 2,820 | 4,807 | 5,278 | 4,860 | 6,242 | ||||||||||||||||||||||||
Net income | $ | 16,243 | $ | 21,311 | $ | 20,683 | $ | 28,322 | $ | 26,978 | |||||||||||||||||||
Adjusted net income(1) | $ | 31,087 | $ | 21,949 | $ | 21,134 | $ | 24,155 | $ | 26,978 | |||||||||||||||||||
PTPP(1) | 36,005 | 29,570 | 25,634 | 30,535 | 29,299 | ||||||||||||||||||||||||
Basic earnings per common share | 0.57 | 0.90 | 0.87 | 1.21 | 1.15 | ||||||||||||||||||||||||
Diluted earnings per common share | 0.57 | 0.90 | 0.87 | 1.20 | 1.14 | ||||||||||||||||||||||||
Adjusted diluted earnings per common share(1) | 1.09 | 0.92 | 0.89 | 1.02 | 1.14 | ||||||||||||||||||||||||
| Dividends declared per common share | 0.15 | 0.15 | 0.13 | 0.13 | 0.13 | ||||||||||||||||||||||||
Weighted average common shares outstanding - basic | 28,298,984 | 23,740,611 | 23,700,550 | 23,484,056 | 23,429,705 | ||||||||||||||||||||||||
Weighted average common shares outstanding - diluted | 28,481,619 | 23,788,164 | 23,770,791 | 23,609,874 | 23,613,010 | ||||||||||||||||||||||||
Balance sheet data | |||||||||||||||||||||||||||||
Total LHFI | $ | 6,882,681 | $ | 5,528,093 | $ | 5,194,406 | $ | 5,231,331 | $ | 5,187,288 | |||||||||||||||||||
Total assets | 9,462,639 | 8,111,524 | 8,112,295 | 7,861,285 | 7,470,478 | ||||||||||||||||||||||||
| Total deposits | 7,777,327 | 6,303,158 | 6,767,179 | 6,570,693 | 6,158,768 | ||||||||||||||||||||||||
| Total stockholders’ equity | 907,024 | 646,373 | 676,865 | 730,211 | 705,667 | ||||||||||||||||||||||||
| Performance metrics and capital ratios | |||||||||||||||||||||||||||||
| Yield on LHFI | 4.94 | % | 4.26 | % | 4.08 | % | 4.11 | % | 4.05 | % | |||||||||||||||||||
| Yield on interest-earnings assets | 4.23 | 3.53 | 3.13 | 3.35 | 3.33 | ||||||||||||||||||||||||
| Cost of interest-bearing deposits | 0.64 | 0.29 | 0.26 | 0.28 | 0.30 | ||||||||||||||||||||||||
| Cost of total deposits | 0.41 | 0.19 | 0.17 | 0.19 | 0.21 | ||||||||||||||||||||||||
| NIM - fully tax equivalent ("FTE") | 3.68 | 3.23 | 2.86 | 3.06 | 3.02 | ||||||||||||||||||||||||
NIM - FTE, adjusted (2) | 3.61 | 3.20 | 2.76 | 2.92 | 2.94 | ||||||||||||||||||||||||
| Return on average assets (annualized) ("ROA") | 0.70 | 1.08 | 1.04 | 1.49 | 1.43 | ||||||||||||||||||||||||
Adjusted ROA (annualized) (1) | 1.34 | 1.11 | 1.07 | 1.27 | 1.43 | ||||||||||||||||||||||||
PTPP ROA (1) | 1.55 | 1.49 | 1.29 | 1.60 | 1.56 | ||||||||||||||||||||||||
| Return on average stockholders’ equity (annualized) ("ROE") | 6.86 | 12.81 | 11.61 | 15.70 | 15.21 | ||||||||||||||||||||||||
Adjusted ROE (annualized) (1) | 13.14 | 13.19 | 11.86 | 13.39 | 15.21 | ||||||||||||||||||||||||
PTPP ROE (1) | 15.22 | 17.77 | 14.39 | 16.93 | 16.52 | ||||||||||||||||||||||||
| Book value per common share | $ | 29.58 | $ | 27.15 | $ | 28.50 | $ | 30.75 | $ | 30.03 | |||||||||||||||||||
Tangible book value per common share (1)(3) | 23.41 | 25.05 | 26.37 | 28.59 | 28.76 | ||||||||||||||||||||||||
Adjusted tangible book value per common share (1) | 29.13 | 29.92 | 29.15 | 28.35 | 28.26 | ||||||||||||||||||||||||
Efficiency ratio (4) | 60.97 | % | 59.89 | % | 62.53 | % | 56.92 | % | 57.21 | % | |||||||||||||||||||
Core efficiency ratio(1) | 52.16 | 54.10 | 58.93 | 57.25 | 53.03 | ||||||||||||||||||||||||
Common equity tier 1 to risk-weighted assets (5) | 10.51 | 10.82 | 11.20 | 11.20 | 11.27 | ||||||||||||||||||||||||
Tier 1 capital to risk-weighted assets (5) | 10.70 | 10.96 | 11.35 | 11.36 | 11.42 | ||||||||||||||||||||||||
Total capital to risk-weighted assets (5) | 13.98 | 14.09 | 14.64 | 14.77 | 14.95 | ||||||||||||||||||||||||
Tier 1 leverage ratio (5) | 9.63 | 9.09 | 8.84 | 9.20 | 9.20 | ||||||||||||||||||||||||
9
Origin Bancorp, Inc.
Selected Quarterly Financial Data
__________________________
(1)Adjusted net income, PTPP earnings, adjusted diluted earnings per common share, adjusted ROA, PTPP ROA, adjusted ROE, PTPP ROE, tangible book value per common share, adjusted tangible book value per common share and core efficiency ratio are either non-GAAP financial measures or use a non-GAAP contributor in the formula. For a reconciliation of these alternative financial measures to their comparable GAAP measures, please see the last few pages of this release.
(2)NIM - FTE, adjusted, is a non-GAAP financial measure, and is calculated for the quarter ended September 30, 2022, by removing the net Purchase Accounting ("PAA") accretion from the net interest income. For periods prior to September 30, 2022, it 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)A decline in accumulated other comprehensive loss during the YTD period ended September 30, 2022, negatively impacted total stockholders' equity and tangible common equity and caused tangible book value per common share to decline primarily due to the steepening of the short end of the yield curve that occurred during 2022 and its impact on our investment portfolio.
(4)Calculated by dividing noninterest expense by the sum of net interest income plus noninterest income.
(5)September 30, 2022, ratios are estimated and calculated at the Company level, which is subject to the capital adequacy requirements of the Federal Reserve Board.
10
Origin Bancorp, Inc.
Selected Year-to-Date Financial Data
| Nine Months Ended September 30, | |||||||||||
| (Dollars in thousands, except per share amounts) | 2022 | 2021 | |||||||||
| Income statement and share amounts | (Unaudited) | ||||||||||
Net interest income | $ | 190,529 | $ | 162,072 | |||||||
| Provision for credit losses | 20,067 | (8,118) | |||||||||
Noninterest income | 43,845 | 45,492 | |||||||||
| Noninterest expense | 143,165 | 116,433 | |||||||||
Income before income tax expense | 71,142 | 99,249 | |||||||||
Income tax expense | 12,905 | 19,025 | |||||||||
Net income | $ | 58,237 | $ | 80,224 | |||||||
Adjusted net income(1) | $ | 74,170 | $ | 78,902 | |||||||
PTPP earnings(1) | 91,209 | 91,131 | |||||||||
Basic earnings per common share (2) | 2.31 | 3.43 | |||||||||
Diluted earnings per common share(2) | 2.30 | 3.40 | |||||||||
Adjusted diluted earnings per common share(1) | 2.92 | 3.34 | |||||||||
| Dividends declared per common share | 0.43 | 0.36 | |||||||||
Weighted average common shares outstanding - basic | 25,263,681 | 23,413,794 | |||||||||
Weighted average common shares outstanding - diluted | 25,366,807 | 23,606,597 | |||||||||
| Performance metrics | |||||||||||
| Yield on LHFI | 4.47 | % | 4.03 | % | |||||||
| Yield on interest-earning assets | 3.66 | 3.45 | |||||||||
| Cost of interest-bearing deposits | 0.40 | 0.33 | |||||||||
| Cost of total deposits | 0.27 | 0.23 | |||||||||
| NIM, FTE | 3.28 | 3.12 | |||||||||
NIM - FTE, adjusted (3) | 3.25 | 3.05 | |||||||||
| ROA (annualized) | 0.93 | 1.44 | |||||||||
Adjusted ROA (annualized)(1) | 1.18 | 1.42 | |||||||||
PTPP ROA (annualized)(1) | 1.45 | 1.64 | |||||||||
| ROE (annualized) | 10.02 | 15.81 | |||||||||
Adjusted ROE (annualized)(1) | 12.76 | 15.55 | |||||||||
PTPP ROE (annualized)(1) | 15.69 | 17.96 | |||||||||
Efficiency ratio (4) | 61.08 | 56.09 | |||||||||
Core efficiency ratio(1) | 54.64 | 51.46 | |||||||||
____________________________
(1)Adjusted net income, PTPP earnings, adjusted diluted earnings per common share, adjusted ROA, PTPP ROA, adjusted ROE, PTPP ROE, and core efficiency ratio are either non-GAAP financial measures or use a non-GAAP contributor in the formula. For a reconciliation of these alternative financial measures to their comparable GAAP measures, please see the last few pages of this release.
(2)Due to the combined impact of the issuance of common stock shares due to the BTH merger on the quarterly average common shares outstanding calculation compared to the impact of the issuance of common stock shares due to the BTH merger on the year-to-date average common outstanding calculation, and the effect of rounding, the sum of the quarterly earnings per common share may not equal the year-to-date earnings per common share amount.
(3)NIM - FTE, adjusted, is a non-GAAP financial measure and is calculated for the nine months ended September 30, 2022, by removing the net PAA accretion from the net interest income. For the nine months ended September 30, 2021, it is calculated by removing average PPP loans from average interest-earning assets and removing the associated interest income (net of 35 basis points assumed cost of funds on average PPP loan balances) from net interest income.
(4)Calculated by dividing noninterest expense by the sum of net interest income plus noninterest income.
11
Origin Bancorp, Inc.
Consolidated Quarterly Statements of Income
| Three Months Ended | |||||||||||||||||||||||||||||
| September 30, 2022 | June 30, 2022 | March 31, 2022 | December 31, 2021 | September 30, 2021 | |||||||||||||||||||||||||
| Interest and dividend income | (Dollars in thousands, except per share amounts, unaudited) | ||||||||||||||||||||||||||||
| Interest and fees on loans | $ | 79,803 | $ | 55,986 | $ | 51,183 | $ | 53,260 | $ | 53,182 | |||||||||||||||||||
| Investment securities-taxable | 7,801 | 7,116 | 5,113 | 4,691 | 3,449 | ||||||||||||||||||||||||
| Investment securities-nontaxable | 2,151 | 1,493 | 1,400 | 1,493 | 1,582 | ||||||||||||||||||||||||
| Interest and dividend income on assets held in other financial institutions | 1,482 | 1,193 | 587 | 686 | 538 | ||||||||||||||||||||||||
| Total interest and dividend income | 91,237 | 65,788 | 58,283 | 60,130 | 58,751 | ||||||||||||||||||||||||
| Interest expense | |||||||||||||||||||||||||||||
| Interest-bearing deposits | 7,734 | 3,069 | 2,886 | 2,957 | 3,255 | ||||||||||||||||||||||||
| FHLB advances and other borrowings | 2,717 | 1,392 | 1,094 | 1,161 | 1,118 | ||||||||||||||||||||||||
| Subordinated debentures | 2,263 | 1,823 | 1,801 | 1,832 | 1,837 | ||||||||||||||||||||||||
| Total interest expense | 12,714 | 6,284 | 5,781 | 5,950 | 6,210 | ||||||||||||||||||||||||
Net interest income | 78,523 | 59,504 | 52,502 | 54,180 | 52,541 | ||||||||||||||||||||||||
| Provision for credit losses | 16,942 | 3,452 | (327) | (2,647) | (3,921) | ||||||||||||||||||||||||
| Net interest income after provision for credit losses | 61,581 | 56,052 | 52,829 | 56,827 | 56,462 | ||||||||||||||||||||||||
| Noninterest income | |||||||||||||||||||||||||||||
| Service charges and fees | 4,734 | 4,274 | 3,998 | 3,994 | 3,973 | ||||||||||||||||||||||||
| Insurance commission and fee income | 5,666 | 5,693 | 6,456 | 2,826 | 3,451 | ||||||||||||||||||||||||
| Mortgage banking (loss) revenue | (929) | 2,354 | 4,096 | 2,857 | 2,728 | ||||||||||||||||||||||||
| Other fee income | 1,162 | 638 | 598 | 702 | 783 | ||||||||||||||||||||||||
| Gain on sales of securities, net | 1,664 | — | — | 75 | — | ||||||||||||||||||||||||
| Gain (loss) on sales and disposals of other assets, net | 70 | (279) | — | (97) | (8) | ||||||||||||||||||||||||
| Limited partnership investment income (loss) | 112 | 282 | (363) | 50 | 3,078 | ||||||||||||||||||||||||
| Swap fee income (loss) | 25 | 1 | 139 | (285) | 727 | ||||||||||||||||||||||||
| Other income | 1,219 | 1,253 | 982 | 6,579 | 1,191 | ||||||||||||||||||||||||
| Total noninterest income | 13,723 | 14,216 | 15,906 | 16,701 | 15,923 | ||||||||||||||||||||||||
| Noninterest expense | |||||||||||||||||||||||||||||
| Salaries and employee benefits | 31,834 | 27,310 | 26,488 | 24,718 | 23,629 | ||||||||||||||||||||||||
| Occupancy and equipment, net | 5,399 | 4,514 | 4,427 | 4,306 | 4,353 | ||||||||||||||||||||||||
| Data processing | 2,689 | 2,413 | 2,486 | 2,302 | 2,329 | ||||||||||||||||||||||||
| Office and operations | 2,121 | 2,162 | 1,560 | 1,849 | 1,598 | ||||||||||||||||||||||||
| Loan related expenses | 1,599 | 1,517 | 1,305 | 1,880 | 1,949 | ||||||||||||||||||||||||
| Professional services | 1,188 | 420 | 1,060 | 923 | 912 | ||||||||||||||||||||||||
| Electronic banking | 1,087 | 896 | 917 | 616 | 997 | ||||||||||||||||||||||||
| Advertising and marketing | 1,196 | 859 | 871 | 1,147 | 863 | ||||||||||||||||||||||||
| Franchise tax expense | 957 | 838 | 770 | 692 | 598 | ||||||||||||||||||||||||
| Regulatory assessments | 877 | 802 | 626 | 526 | 664 | ||||||||||||||||||||||||
| Intangible asset amortization | 1,872 | 525 | 537 | 194 | 194 | ||||||||||||||||||||||||
| Communications | 279 | 252 | 281 | 286 | 359 | ||||||||||||||||||||||||
| Merger-related expense | 3,614 | 807 | 571 | — | — | ||||||||||||||||||||||||
| Other expenses | 1,529 | 835 | 875 | 907 | 720 | ||||||||||||||||||||||||
| Total noninterest expense | 56,241 | 44,150 | 42,774 | 40,346 | 39,165 | ||||||||||||||||||||||||
| Income before income tax expense | 19,063 | 26,118 | 25,961 | 33,182 | 33,220 | ||||||||||||||||||||||||
| Income tax expense | 2,820 | 4,807 | 5,278 | 4,860 | 6,242 | ||||||||||||||||||||||||
| Net income | $ | 16,243 | $ | 21,311 | $ | 20,683 | $ | 28,322 | $ | 26,978 | |||||||||||||||||||
| Basic earnings per common share | $ | 0.57 | $ | 0.90 | $ | 0.87 | $ | 1.21 | $ | 1.15 | |||||||||||||||||||
| Diluted earnings per common share | 0.57 | 0.90 | 0.87 | 1.20 | 1.14 | ||||||||||||||||||||||||
12
Origin Bancorp, Inc.
Consolidated Balance Sheets
| (Dollars in thousands) | September 30, 2022 | June 30, 2022 | March 31, 2022 | December 31, 2021 | September 30, 2021 | ||||||||||||||||||||||||
| Assets | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||||||||||||||||||||||
| Cash and due from banks | $ | 118,505 | $ | 123,499 | $ | 129,825 | $ | 133,334 | $ | 124,515 | |||||||||||||||||||
| Interest-bearing deposits in banks | 181,965 | 200,421 | 454,619 | 572,284 | 227,450 | ||||||||||||||||||||||||
| Total cash and cash equivalents | 300,470 | 323,920 | 584,444 | 705,618 | 351,965 | ||||||||||||||||||||||||
| Securities: | |||||||||||||||||||||||||||||
| AFS | 1,672,170 | 1,804,370 | 1,905,687 | 1,504,728 | 1,486,543 | ||||||||||||||||||||||||
| Held to maturity, net of allowance for credit losses | 11,285 | 4,288 | 4,831 | 22,767 | 37,702 | ||||||||||||||||||||||||
| Securities carried at fair value through income | 6,347 | 6,630 | 7,058 | 7,497 | 10,876 | ||||||||||||||||||||||||
| Total securities | 1,689,802 | 1,815,288 | 1,917,576 | 1,534,992 | 1,535,121 | ||||||||||||||||||||||||
| Non-marketable equity securities held in other financial institutions | 53,899 | 76,822 | 45,242 | 45,192 | 45,144 | ||||||||||||||||||||||||
| Loans held for sale | 59,714 | 62,493 | 80,295 | 80,387 | 109,956 | ||||||||||||||||||||||||
| Loans | 6,882,681 | 5,528,093 | 5,194,406 | 5,231,331 | 5,187,288 | ||||||||||||||||||||||||
| Less: ALCL | 83,359 | 63,123 | 62,173 | 64,586 | 69,947 | ||||||||||||||||||||||||
| Loans, net of ALCL | 6,799,322 | 5,464,970 | 5,132,233 | 5,166,745 | 5,117,341 | ||||||||||||||||||||||||
| Premises and equipment, net | 99,291 | 81,950 | 80,421 | 80,691 | 80,740 | ||||||||||||||||||||||||
| Mortgage servicing rights | 21,654 | 22,127 | 21,187 | 16,220 | 16,000 | ||||||||||||||||||||||||
| Cash surrender value of bank-owned life insurance | 38,885 | 38,742 | 38,547 | 38,352 | 38,162 | ||||||||||||||||||||||||
| Goodwill | 136,793 | 34,153 | 34,153 | 34,368 | 26,741 | ||||||||||||||||||||||||
| Other intangible assets, net | 52,384 | 15,900 | 16,425 | 16,962 | 3,089 | ||||||||||||||||||||||||
| Accrued interest receivable and other assets | 210,425 | 175,159 | 161,772 | 141,758 | 146,219 | ||||||||||||||||||||||||
| Total assets | $ | 9,462,639 | $ | 8,111,524 | $ | 8,112,295 | $ | 7,861,285 | $ | 7,470,478 | |||||||||||||||||||
| Liabilities and Stockholders’ Equity | |||||||||||||||||||||||||||||
| Noninterest-bearing deposits | $ | 2,667,489 | $ | 2,214,919 | $ | 2,295,682 | $ | 2,163,507 | $ | 1,980,107 | |||||||||||||||||||
| Interest-bearing deposits | 4,361,423 | 3,598,417 | 3,947,714 | 3,864,058 | 3,600,654 | ||||||||||||||||||||||||
| Time deposits | 748,415 | 489,822 | 523,783 | 543,128 | 578,007 | ||||||||||||||||||||||||
| Total deposits | 7,777,327 | 6,303,158 | 6,767,179 | 6,570,693 | 6,158,768 | ||||||||||||||||||||||||
| FHLB advances and other borrowings | 450,456 | 894,581 | 305,560 | 309,801 | 309,152 | ||||||||||||||||||||||||
| Subordinated debentures | 201,687 | 157,540 | 157,478 | 157,417 | 157,357 | ||||||||||||||||||||||||
| Accrued expenses and other liabilities | 126,145 | 109,872 | 205,213 | 93,163 | 139,534 | ||||||||||||||||||||||||
| Total liabilities | 8,555,615 | 7,465,151 | 7,435,430 | 7,131,074 | 6,764,811 | ||||||||||||||||||||||||
| Stockholders’ equity: | |||||||||||||||||||||||||||||
Common stock | 153,309 | 119,038 | 118,744 | 118,733 | 117,480 | ||||||||||||||||||||||||
| Additional paid-in capital | 518,376 | 244,368 | 242,789 | 242,114 | 237,928 | ||||||||||||||||||||||||
| Retained earnings | 410,572 | 398,946 | 381,222 | 363,635 | 338,387 | ||||||||||||||||||||||||
| Accumulated other comprehensive (loss) income | (175,233) | (115,979) | (65,890) | 5,729 | 11,872 | ||||||||||||||||||||||||
| Total stockholders’ equity | 907,024 | 646,373 | 676,865 | 730,211 | 705,667 | ||||||||||||||||||||||||
| Total liabilities and stockholders’ equity | $ | 9,462,639 | $ | 8,111,524 | $ | 8,112,295 | $ | 7,861,285 | $ | 7,470,478 | |||||||||||||||||||
13
Origin Bancorp, Inc.
Loan Data
| At and For the Three Months Ended | |||||||||||||||||||||||||||||
| September 30, 2022 | June 30, 2022 | March 31, 2022 | December 31, 2021 | September 30, 2021 | |||||||||||||||||||||||||
| LHFI | (Dollars in thousands, unaudited) | ||||||||||||||||||||||||||||
| Commercial real estate | $ | 2,174,347 | $ | 1,909,054 | $ | 1,801,382 | $ | 1,693,512 | $ | 1,590,519 | |||||||||||||||||||
| Construction/land/land development | 853,311 | 635,556 | 593,350 | 530,083 | 518,920 | ||||||||||||||||||||||||
| Residential real estate | 1,399,182 | 1,005,623 | 922,054 | 909,739 | 913,411 | ||||||||||||||||||||||||
| Total real estate loans | 4,426,840 | 3,550,233 | 3,316,786 | 3,133,334 | 3,022,850 | ||||||||||||||||||||||||
| Commercial and industrial | 1,967,037 | 1,430,239 | 1,358,597 | 1,454,235 | 1,435,203 | ||||||||||||||||||||||||
| Mortgage warehouse lines of credit | 460,573 | 531,888 | 503,249 | 627,078 | 713,339 | ||||||||||||||||||||||||
| Consumer | 28,231 | 15,733 | 15,774 | 16,684 | 15,896 | ||||||||||||||||||||||||
| Total LHFI | 6,882,681 | 5,528,093 | 5,194,406 | 5,231,331 | 5,187,288 | ||||||||||||||||||||||||
| Less: allowance for loan credit losses ("ALCL") | 83,359 | 63,123 | 62,173 | 64,586 | 69,947 | ||||||||||||||||||||||||
| LHFI, net | $ | 6,799,322 | $ | 5,464,970 | $ | 5,132,233 | $ | 5,166,745 | $ | 5,117,341 | |||||||||||||||||||
| Nonperforming assets | |||||||||||||||||||||||||||||
| Nonperforming LHFI | |||||||||||||||||||||||||||||
| Commercial real estate | $ | 431 | $ | 224 | $ | 233 | $ | 512 | $ | 672 | |||||||||||||||||||
| Construction/land/land development | 366 | 373 | 256 | 338 | 592 | ||||||||||||||||||||||||
| Residential real estate | 7,641 | 7,478 | 11,609 | 11,647 | 9,377 | ||||||||||||||||||||||||
| Commercial and industrial | 5,134 | 5,930 | 8,987 | 12,306 | 13,873 | ||||||||||||||||||||||||
| Mortgage warehouse lines of credit | 385 | — | — | — | — | ||||||||||||||||||||||||
| Consumer | 74 | 80 | 96 | 100 | 41 | ||||||||||||||||||||||||
| Total nonperforming LHFI | 14,031 | 14,085 | 21,181 | 24,903 | 24,555 | ||||||||||||||||||||||||
| Nonperforming loans held for sale | 2,698 | 2,461 | 2,698 | 1,754 | 2,074 | ||||||||||||||||||||||||
| Total nonperforming loans | 16,729 | 16,546 | 23,879 | 26,657 | 26,629 | ||||||||||||||||||||||||
| Repossessed assets | 1,781 | 2,009 | 1,703 | 1,860 | 4,574 | ||||||||||||||||||||||||
| Total nonperforming assets | $ | 18,510 | $ | 18,555 | $ | 25,582 | $ | 28,517 | $ | 31,203 | |||||||||||||||||||
| Classified assets | $ | 71,562 | $ | 54,124 | $ | 72,082 | $ | 71,232 | $ | 80,165 | |||||||||||||||||||
Past due LHFI (1) | 10,866 | 7,186 | 21,753 | 25,615 | 25,954 | ||||||||||||||||||||||||
| Allowance for loan credit losses | |||||||||||||||||||||||||||||
| Balance at beginning of period | $ | 63,123 | $ | 62,173 | $ | 64,586 | $ | 69,947 | $ | 77,104 | |||||||||||||||||||
| Provision for loan credit losses | 15,787 | 2,503 | (659) | (2,668) | (4,266) | ||||||||||||||||||||||||
| ALCL - BTH merger | 5,527 | — | — | — | — | ||||||||||||||||||||||||
| Loans charged off | 1,628 | 2,192 | 2,402 | 3,162 | 3,035 | ||||||||||||||||||||||||
| Loan recoveries | 550 | 639 | 648 | 469 | 144 | ||||||||||||||||||||||||
| Net charge-offs | 1,078 | 1,553 | 1,754 | 2,693 | 2,891 | ||||||||||||||||||||||||
| Balance at end of period | $ | 83,359 | $ | 63,123 | $ | 62,173 | $ | 64,586 | $ | 69,947 | |||||||||||||||||||
14
Origin Bancorp, Inc.
Loan Data - Continued
| At and For the Three Months Ended | |||||||||||||||||||||||||||||
| September 30, 2022 | June 30, 2022 | March 31, 2022 | December 31, 2021 | September 30, 2021 | |||||||||||||||||||||||||
| Credit quality ratios | (Dollars in thousands, unaudited) | ||||||||||||||||||||||||||||
| Total nonperforming assets to total assets | 0.20 | % | 0.23 | % | 0.32 | % | 0.36 | % | 0.42 | % | |||||||||||||||||||
| Total nonperforming loans to total loans | 0.24 | 0.30 | 0.45 | 0.50 | 0.50 | ||||||||||||||||||||||||
| Nonperforming LHFI to LHFI | 0.20 | 0.25 | 0.41 | 0.48 | 0.47 | ||||||||||||||||||||||||
| Past due LHFI to LHFI | 0.16 | 0.13 | 0.42 | 0.49 | 0.50 | ||||||||||||||||||||||||
| ALCL to nonperforming LHFI | 594.11 | 448.16 | 293.53 | 259.35 | 284.86 | ||||||||||||||||||||||||
| ALCL to total LHFI | 1.21 | 1.14 | 1.20 | 1.23 | 1.35 | ||||||||||||||||||||||||
ALCL to total LHFI, adjusted (2) | 1.29 | 1.25 | 1.33 | 1.43 | 1.63 | ||||||||||||||||||||||||
| Net charge-offs to total average LHFI (annualized) | 0.07 | 0.12 | 0.14 | 0.21 | 0.22 | ||||||||||||||||||||||||
____________________________
(1)Past due LHFI are defined as loans 30 days or more past due.
(2)The ALCL to total LHFI, adjusted is calculated at September 30, 2022, by excluding the ALCL for warehouse loans from the total LHFI ALCL in the numerator and excluding the warehouse loans from the LHFI in the denominator. For the periods prior to September 30, 2022, it is calculated by excluding the ALCL for warehouse loans from the total LHFI ALCL in the numerator and excluding the PPP and warehouse loans from the LHFI in the denominator. Due to their low-risk profile, mortgage warehouse loans require a disproportionately low allocation of the ALCL and PPP loans are fully guaranteed by the SBA.
15
Origin Bancorp, Inc.
Average Balances and Yields/Rates
| Three Months Ended | |||||||||||||||||||||||||||||||||||
| September 30, 2022 | June 30, 2022 | September 30, 2021 | |||||||||||||||||||||||||||||||||
| Average Balance | Yield/Rate | Average Balance | Yield/Rate | Average Balance | Yield/Rate | ||||||||||||||||||||||||||||||
| Assets | (Dollars in thousands, unaudited) | ||||||||||||||||||||||||||||||||||
| Commercial real estate | $ | 2,046,411 | 4.64 | % | $ | 1,828,700 | 4.17 | % | $ | 1,505,731 | 4.08 | % | |||||||||||||||||||||||
| Construction/land/land development | 760,682 | 5.20 | 587,872 | 4.52 | 527,881 | 4.10 | |||||||||||||||||||||||||||||
| Residential real estate | 1,249,746 | 4.36 | 966,363 | 4.30 | 936,375 | 4.14 | |||||||||||||||||||||||||||||
| Commercial and industrial ("C&I") | 1,816,912 | 5.64 | 1,398,802 | 4.26 | 1,492,375 | 4.14 | |||||||||||||||||||||||||||||
| Mortgage warehouse lines of credit | 491,584 | 4.53 | 444,851 | 4.10 | 660,715 | 3.58 | |||||||||||||||||||||||||||||
| Consumer | 24,137 | 6.80 | 15,979 | 6.03 | 16,222 | 5.81 | |||||||||||||||||||||||||||||
| LHFI | 6,389,472 | 4.94 | 5,242,567 | 4.26 | 5,139,299 | 4.05 | |||||||||||||||||||||||||||||
| Loans held for sale | 29,927 | 4.12 | 37,678 | 3.69 | 72,739 | 3.85 | |||||||||||||||||||||||||||||
| Loans receivable | 6,419,399 | 4.93 | 5,280,245 | 4.25 | 5,212,038 | 4.05 | |||||||||||||||||||||||||||||
| Investment securities-taxable | 1,547,848 | 2.00 | 1,610,400 | 1.77 | 853,277 | 1.60 | |||||||||||||||||||||||||||||
| Investment securities-nontaxable | 317,175 | 2.69 | 258,178 | 2.32 | 280,189 | 2.24 | |||||||||||||||||||||||||||||
| Non-marketable equity securities held in other financial institutions | 73,819 | 2.10 | 51,052 | 4.79 | 43,725 | 2.22 | |||||||||||||||||||||||||||||
| Interest-bearing balances due from banks | 206,781 | 2.09 | 277,800 | 0.84 | 610,863 | 0.19 | |||||||||||||||||||||||||||||
| Total interest-earning assets | 8,565,022 | 4.23 | 7,477,675 | 3.53 | 7,000,092 | 3.33 | |||||||||||||||||||||||||||||
Noninterest-earning assets(1) | 637,399 | 467,045 | 464,721 | ||||||||||||||||||||||||||||||||
| Total assets | $ | 9,202,421 | $ | 7,944,720 | $ | 7,464,813 | |||||||||||||||||||||||||||||
| Liabilities and Stockholders’ Equity | |||||||||||||||||||||||||||||||||||
| Liabilities | |||||||||||||||||||||||||||||||||||
| Interest-bearing liabilities | |||||||||||||||||||||||||||||||||||
| Savings and interest-bearing transaction accounts | $ | 4,157,092 | 0.66 | % | $ | 3,767,275 | 0.26 | % | $ | 3,657,625 | 0.25 | % | |||||||||||||||||||||||
| Time deposits | 669,900 | 0.51 | 503,325 | 0.49 | 582,384 | 0.67 | |||||||||||||||||||||||||||||
| Total interest-bearing deposits | 4,826,992 | 0.64 | 4,270,600 | 0.29 | 4,240,009 | 0.30 | |||||||||||||||||||||||||||||
| FHLB advances and other borrowings | 538,020 | 2.00 | 417,121 | 1.34 | 263,956 | 1.68 | |||||||||||||||||||||||||||||
| Subordinated debentures | 186,803 | 4.81 | 157,517 | 4.64 | 157,321 | 4.63 | |||||||||||||||||||||||||||||
| Total interest-bearing liabilities | 5,551,815 | 0.91 | 4,845,238 | 0.52 | 4,661,286 | 0.53 | |||||||||||||||||||||||||||||
| Noninterest-bearing liabilities | |||||||||||||||||||||||||||||||||||
| Noninterest-bearing deposits | 2,582,500 | 2,288,732 | 1,965,843 | ||||||||||||||||||||||||||||||||
Other liabilities(1) | 129,354 | 143,427 | 134,079 | ||||||||||||||||||||||||||||||||
| Total liabilities | 8,263,669 | 7,277,397 | 6,761,208 | ||||||||||||||||||||||||||||||||
| Stockholders’ Equity | 938,752 | 667,323 | 703,605 | ||||||||||||||||||||||||||||||||
| Total liabilities and stockholders’ equity | $ | 9,202,421 | $ | 7,944,720 | $ | 7,464,813 | |||||||||||||||||||||||||||||
| Net interest spread | 3.32 | % | 3.01 | % | 2.80 | % | |||||||||||||||||||||||||||||
| NIM | 3.64 | 3.19 | 2.98 | ||||||||||||||||||||||||||||||||
NIM - (FTE)(2) | 3.68 | 3.23 | 3.02 | ||||||||||||||||||||||||||||||||
NIM - FTE, adjusted (3) | 3.61 | 3.20 | 2.94 | ||||||||||||||||||||||||||||||||
____________________________
(1)Includes Government National Mortgage Association (“GNMA”) repurchase average balances of $29.1 million, $35.8 million, and $51.3 million for the three months ended September 30, 2022, June 30, 2022, and September 30, 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)NIM - FTE, adjusted, is calculated for the quarter ended September 30, 2022, by removing the net PAA accretion from the net interest income. For periods prior to September 30, 2022, it 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.
16
Origin Bancorp, Inc.
Non-GAAP Financial Measures
| At and For the Three Months Ended | |||||||||||||||||||||||||||||
| September 30, 2022 | June 30, 2022 | March 31, 2022 | December 31, 2021 | September 30, 2021 | |||||||||||||||||||||||||
| Calculation of PTPP earnings: | (Dollars in thousands, except per share amounts, unaudited) | ||||||||||||||||||||||||||||
| Net income | $ | 16,243 | $ | 21,311 | $ | 20,683 | $ | 28,322 | $ | 26,978 | |||||||||||||||||||
| Plus: provision for credit losses | 16,942 | 3,452 | (327) | (2,647) | (3,921) | ||||||||||||||||||||||||
| Plus: income tax expense | 2,820 | 4,807 | 5,278 | 4,860 | 6,242 | ||||||||||||||||||||||||
| PTPP Earnings | $ | 36,005 | $ | 29,570 | $ | 25,634 | $ | 30,535 | $ | 29,299 | |||||||||||||||||||
| Calculation of PTPP ROA and PTPP ROE: | |||||||||||||||||||||||||||||
| PTPP earnings | $ | 36,005 | $ | 29,570 | $ | 25,634 | $ | 30,535 | $ | 29,299 | |||||||||||||||||||
| Divided by number of days in the quarter | 92 | 91 | 90 | 92 | 92 | ||||||||||||||||||||||||
| Multiplied by the number of days in the year | 365 | 365 | 365 | 365 | 365 | ||||||||||||||||||||||||
| PTPP earnings, annualized | $ | 142,846 | $ | 118,605 | $ | 103,960 | $ | 121,144 | $ | 116,241 | |||||||||||||||||||
| Divided by total average assets | 9,202,421 | 7,944,720 | 8,045,246 | 7,559,570 | 7,464,813 | ||||||||||||||||||||||||
| PTPP ROA (annualized) | 1.55 | % | 1.49 | % | 1.29 | % | 1.60 | % | 1.56 | % | |||||||||||||||||||
| Divided by total average stockholders' equity | $ | 938,752 | $ | 667,323 | $ | 722,504 | $ | 715,614 | $ | 703,605 | |||||||||||||||||||
| PTPP ROE (annualized) | 15.22 | % | 17.77 | % | 14.39 | % | 16.93 | % | 16.52 | % | |||||||||||||||||||
| Calculation of core efficiency ratio: | |||||||||||||||||||||||||||||
| Net interest income | $ | 78,523 | $ | 59,504 | $ | 52,502 | $ | 54,180 | $ | 52,541 | |||||||||||||||||||
| Less: insurance and mortgage net interest income | 1,208 | 1,082 | 875 | 946 | 1,048 | ||||||||||||||||||||||||
| Total noninterest income | 13,723 | 14,216 | 15,906 | 16,701 | 15,923 | ||||||||||||||||||||||||
| Less: insurance and mortgage noninterest income | 4,737 | 8,047 | 10,552 | 5,683 | 6,179 | ||||||||||||||||||||||||
| Less: gain on fair value of the Lincoln Agency | — | — | — | 5,200 | — | ||||||||||||||||||||||||
| Less: gain on sale of securities, net | 1,664 | — | — | 75 | — | ||||||||||||||||||||||||
| Adjusted total revenue | $ | 84,637 | $ | 64,591 | $ | 56,981 | $ | 58,977 | $ | 61,237 | |||||||||||||||||||
| Total noninterest expense | $ | 56,241 | $ | 44,150 | $ | 42,774 | $ | 40,346 | $ | 39,165 | |||||||||||||||||||
| Less: insurance and mortgage noninterest expense | 8,479 | 8,397 | 8,626 | 6,580 | 6,688 | ||||||||||||||||||||||||
| Less: merger-related expenses | 3,614 | 807 | 571 | — | — | ||||||||||||||||||||||||
| Adjusted total noninterest expense | 44,148 | 34,946 | 33,577 | 33,766 | 32,477 | ||||||||||||||||||||||||
| Efficiency ratio | 60.97 | % | 59.89 | % | 62.53 | % | 56.92 | % | 57.21 | % | |||||||||||||||||||
| Core efficiency ratio | 52.16 | 54.10 | 58.93 | 57.25 | 53.03 | ||||||||||||||||||||||||
| Calculation of tangible book value per common share and adjusted tangible book value per common share: | |||||||||||||||||||||||||||||
| Total common stockholders’ equity | $ | 907,024 | $ | 646,373 | $ | 676,865 | $ | 730,211 | $ | 705,667 | |||||||||||||||||||
| Less: goodwill | 136,793 | 34,153 | 34,153 | 34,368 | 26,741 | ||||||||||||||||||||||||
| Less: other intangible assets, net | 52,384 | 15,900 | 16,425 | 16,962 | 3,089 | ||||||||||||||||||||||||
| Tangible common equity | 717,847 | 596,320 | 626,287 | 678,881 | 675,837 | ||||||||||||||||||||||||
| Less: accumulated other comprehensive (loss) income | (175,233) | (115,979) | (65,890) | 5,729 | 11,872 | ||||||||||||||||||||||||
| Adjusted tangible common equity | 893,080 | 712,299 | 692,177 | 673,152 | 663,965 | ||||||||||||||||||||||||
| Divided by common shares outstanding at the end of the period | 30,661,734 | 23,807,677 | 23,748,748 | 23,746,502 | 23,496,058 | ||||||||||||||||||||||||
| Tangible book value per common share | $ | 23.41 | $ | 25.05 | $ | 26.37 | $ | 28.59 | $ | 28.76 | |||||||||||||||||||
| Adjusted tangible book value per common share | $ | 29.13 | $ | 29.92 | $ | 29.15 | $ | 28.35 | $ | 28.26 | |||||||||||||||||||
17
Origin Bancorp, Inc.
Non-GAAP Financial Measures
| At and For the Three Months Ended | |||||||||||||||||||||||||||||
| September 30, 2022 | June 30, 2022 | March 31, 2022 | December 31, 2021 | September 30, 2021 | |||||||||||||||||||||||||
| Calculation of adjusted net income: | |||||||||||||||||||||||||||||
| Net interest income after provision for credit losses | $ | 61,581 | $ | 56,052 | $ | 52,829 | $ | 56,827 | $ | 56,462 | |||||||||||||||||||
| Add: CECL provision for non-PCD loans | 14,890 | — | — | — | — | ||||||||||||||||||||||||
| Adjusted net interest income after provision for credit losses | 76,471 | 56,052 | 52,829 | 56,827 | 56,462 | ||||||||||||||||||||||||
| Total noninterest income | 13,723 | 14,216 | 15,906 | 16,701 | 15,923 | ||||||||||||||||||||||||
| Less: GNMA MSR impairment | (1,950) | — | — | — | — | ||||||||||||||||||||||||
| Less: gain on sales of securities, net | 1,664 | — | — | 75 | — | ||||||||||||||||||||||||
| Less: Gain on fair value of the Lincoln Agency | — | — | — | 5,200 | — | ||||||||||||||||||||||||
| Adjusted total noninterest income | 14,009 | 14,216 | 15,906 | 11,426 | 15,923 | ||||||||||||||||||||||||
| Total noninterest expense | 56,241 | 44,150 | 42,774 | 40,346 | 39,165 | ||||||||||||||||||||||||
| Less: merger-related expenses | 3,614 | 807 | 571 | — | — | ||||||||||||||||||||||||
| Adjusted total noninterest expense | 52,627 | 43,343 | 42,203 | 40,346 | 39,165 | ||||||||||||||||||||||||
| Income tax expense | 2,820 | 4,807 | 5,278 | 4,860 | 6,242 | ||||||||||||||||||||||||
| Add: income tax expense | 3,946 | 169 | 120 | (1,108) | — | ||||||||||||||||||||||||
| Adjusted income tax expense | 6,766 | 4,976 | 5,398 | 3,752 | 6,242 | ||||||||||||||||||||||||
| Adjusted net income | $ | 31,087 | $ | 21,949 | $ | 21,134 | $ | 24,155 | $ | 26,978 | |||||||||||||||||||
| Calculation of adjusted ROA and adjusted ROE: | |||||||||||||||||||||||||||||
| Adjusted net income | $ | 31,087 | $ | 21,949 | $ | 21,134 | $ | 24,155 | $ | 26,978 | |||||||||||||||||||
| Divided by number of days in the quarter | 92 | 91 | 90 | 92 | 92 | ||||||||||||||||||||||||
| Multiplied by number of days in the year | 365 | 365 | 365 | 365 | 365 | ||||||||||||||||||||||||
| Annualized adjusted net income | $ | 123,334 | $ | 88,037 | $ | 85,710 | $ | 95,832 | $ | 107,032 | |||||||||||||||||||
| Divided by total average assets | $ | 9,202,421 | $ | 7,944,720 | $ | 8,045,246 | $ | 7,559,570 | $ | 7,464,813 | |||||||||||||||||||
| Adjusted ROA (annualized) | 1.34 | % | 1.11 | % | 1.07 | % | 1.27 | % | 1.43 | % | |||||||||||||||||||
| Divided by total average stockholders equity | $ | 938,752 | $ | 667,323 | $ | 722,504 | $ | 715,614 | $ | 703,605 | |||||||||||||||||||
| Adjusted ROE (annualized) | 13.14 | % | 13.19 | % | 11.86 | % | 13.39 | % | 15.21 | % | |||||||||||||||||||
| Calculation of adjusted EPS and adjusted dilutive EPS: | |||||||||||||||||||||||||||||
| Numerator: | |||||||||||||||||||||||||||||
| Adjusted net income | $ | 31,087 | $ | 21,949 | $ | 21,134 | $ | 24,155 | $ | 26,978 | |||||||||||||||||||
| Denominator: | |||||||||||||||||||||||||||||
| Weighted average common shares outstanding | 28,298,984 | 23,740,611 | 23,700,550 | 23,484,056 | 23,429,705 | ||||||||||||||||||||||||
| Weighted average diluted common shares outstanding | 28,481,619 | 23,788,164 | 23,770,791 | 23,609,874 | 23,613,010 | ||||||||||||||||||||||||
| Adjusted basic earnings per share | $ | 1.10 | $ | 0.92 | $ | 0.89 | $ | 1.03 | $ | 1.15 | |||||||||||||||||||
| Adjusted diluted earnings per share | 1.09 | 0.92 | 0.89 | 1.02 | 1.14 | ||||||||||||||||||||||||
18
Origin Bancorp, Inc.
Non-GAAP Financial Measures
| Nine Months Ended September 30, | |||||||||||
| (Dollars in thousands, except per share amounts, unaudited) | 2022 | 2021 | |||||||||
| Calculation of PTPP earnings: | |||||||||||
| Net income | $ | 58,237 | $ | 80,224 | |||||||
| Plus: provision for credit losses | 20,067 | (8,118) | |||||||||
| Plus: income tax expense | 12,905 | 19,025 | |||||||||
| PTPP earnings | $ | 91,209 | $ | 91,131 | |||||||
| Calculation of PTPP ROA and PTPP ROE: | |||||||||||
| PTPP earnings | $ | 91,209 | $ | 91,131 | |||||||
| Divided by number of days in this period | 273 | 273 | |||||||||
| Multiplied by the number of days in the year | 365 | 365 | |||||||||
| PTPP earnings, annualized | $ | 121,946 | $ | 121,842 | |||||||
| Divided by total average assets | $ | 8,401,701 | $ | 7,441,055 | |||||||
| PTPP ROA | 1.45 | % | 1.64 | % | |||||||
| Divided by total average stockholders' equity | $ | 776,985 | $ | 678,223 | |||||||
| PTPP ROE | 15.69 | % | 17.96 | % | |||||||
| Calculation of core efficiency ratio: | |||||||||||
| Net interest income | $ | 190,529 | $ | 162,072 | |||||||
| Less: insurance and mortgage net interest income | 3,165 | 3,030 | |||||||||
| Total noninterest income | 43,845 | 45,492 | |||||||||
| Less: insurance and mortgage noninterest income | 23,336 | 20,342 | |||||||||
| Less: gain on sale of securities, net | 1,664 | 1,673 | |||||||||
| Adjusted total revenue | $ | 206,209 | $ | 182,519 | |||||||
| Total noninterest expense | $ | 143,165 | $ | 116,433 | |||||||
| Less: insurance and mortgage noninterest expense | 25,502 | 20,904 | |||||||||
| Less: merger-related expenses | 4,992 | — | |||||||||
| Less: other noninterest expense | — | 1,613 | |||||||||
| Adjusted total expense | $ | 112,671 | $ | 93,916 | |||||||
| Efficiency ratio | 61.08 | % | 56.09 | % | |||||||
| Core efficiency ratio | 54.64 | % | 51.46 | % | |||||||
19
Origin Bancorp, Inc.
Non-GAAP Financial Measures
| Nine Months Ended September 30, | |||||||||||
| (Dollars in thousands, except per share amounts, unaudited) | 2022 | 2021 | |||||||||
| Calculation of adjusted net income: | |||||||||||
| Net interest income after provision for credit losses | $ | 170,462 | $ | 170,190 | |||||||
| Add: CECL provision for non-PCD loans | 14,890 | — | |||||||||
| Adjusted net interest income after provision for credit losses | 185,352 | 170,190 | |||||||||
| Total noninterest income | 43,845 | 45,492 | |||||||||
| Less: GNMA MSR impairment | (1,950) | — | |||||||||
| Less: gain on sales of securities, net | 1,664 | 1,673 | |||||||||
| Adjusted total noninterest income | 44,131 | 43,819 | |||||||||
| Total noninterest expense | 143,165 | 116,433 | |||||||||
| Less: merger-related expense | 4,992 | — | |||||||||
| Adjusted total noninterest expense | 138,173 | 116,433 | |||||||||
| Income tax expense | 12,905 | 19,025 | |||||||||
| Add: income tax expense | 4,235 | (351) | |||||||||
| Adjusted income tax expense | 17,140 | 18,674 | |||||||||
| Adjusted net income | $ | 74,170 | $ | 78,902 | |||||||
| Calculation of adjusted ROA and adjusted ROE: | |||||||||||
| Adjusted net income | $ | 74,170 | $ | 78,902 | |||||||
| Divided by number of days in the quarter | 273 | 273 | |||||||||
| Multiplied by number of days in the year | 365 | 365 | |||||||||
| Annualized adjusted net income | $ | 99,165 | $ | 105,492 | |||||||
| Divided by total average assets | $ | 8,401,701 | $ | 7,441,055 | |||||||
| Adjusted ROA (annualized) | 1.18 | % | 1.42 | % | |||||||
| Divided by total average stockholders' equity | $ | 776,985 | $ | 678,223 | |||||||
| Adjusted ROE (annualized) | 12.76 | % | 15.55 | % | |||||||
| Calculation of adjusted EPS and Dilutive EPS: | |||||||||||
| Numerator: | |||||||||||
| Adjusted net income | $ | 74,170 | $ | 78,902 | |||||||
| Denominator: | |||||||||||
| Weighted average common shares outstanding | 25,263,681 | 23,413,794 | |||||||||
| Weighted average diluted common shares outstanding | 25,366,807 | 23,606,597 | |||||||||
| Adjusted basic earnings per share | $ | 2.94 | $ | 3.37 | |||||||
| Adjusted diluted earnings per share | 2.92 | 3.34 | |||||||||
20
3Q TWENTY22 INVESTOR PRESENTATION 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; developments in our mortgage banking business, including loan modifications, general demand, and the effects of judicial or regulatory requirements or guidance; 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; significant turbulence or a disruption in the capital or financial markets and the effect of a fall in stock market prices on our investment securities; 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. 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 book value per common share, adjusted tangible book value per common share, adjusted net income, pre-tax, pre-provision earnings, adjusted diluted earnings per share, net interest margin, adjusted, core efficiency ratio, adjusted return on average assets, pre- tax, pre-provision return on average assets, adjusted return on average equity, pre-tax, pre-provision return on average equity. Please see “Reconciliation of Non-GAAP Financial Measures” at the end of this presentation for reconciliations of non-GAAP measures to the most directly comparable financial measures calculated in accordance with GAAP. 2 FORWARD-LOOKING STATEMENTS AND NON-GAAP MEASURES
ORIGIN BANCORP, INC. _______ 16 TEXAS Entry: DFW 2008 | Houston 2013 | East Texas 2022 Loans: $4,382 Deposits: $4,271 LOUISIANA Entry: 1912 Loans: $1,435 Deposits: $2,873 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 • 59 banking centers operating across Texas, Louisiana & Mississippi DEPOSITS & LOANS BY STATE Note: All financial information is as of 09/30/22. (1) Excludes $19.3 million of non-market based deposits. (2) Excludes mortgage warehouse loans. MISSISSIPPI Entry: 2010 Loans: $605 Deposits: $614 8% 9% 37% 22% 55% 69% Loans (2)Deposits (1) ICS ICS 9 9 19 6
ORIGIN BANCORP, INC. _______ ORIGIN BANK + BTH —— ENHANCING —— OUR TEXAS FRANCHISE 4 COMPLETED MERGER WITH BT HOLDINGS, INC. ON AUGUST 1, 2022 Metric At Announcement (1) Updated TBV Share Dilution (3.6) % (2.5) % 23 EPS Accretion 12.7 5.7 (2) TBV Earnback (years) 2.2 1.6 (2) (1) Estimates provided at announcement on February 24th, 2022. (2) '23 EPS accretion and TBV earnback period are projections as of August 1st, 2022. (3) Unaudited. BTH Balances - Loans and Deposits (3) ORIGIN BANKING CENTERS (46) BTH BANKING CENTERS (13) (Dollars in Billions) 9/30/2022 8/1/2022 6/30/2022 BTH Loans $ 1.24 $ 1.24 $ 1.25 BTH Deposits 1.45 1.57 1.61
ORIGIN BANCORP, INC. _______ 5 A UNIQUE & DEFINED CULTURE
ORIGIN BANCORP, INC. _______ QTD YTD Balance Sheet 3Q22 2Q22 Linked Qtr % Δ 3Q21 YoY % Δ 3Q22 3Q21 YoY % Δ Total Loans Held for Investment ("LHFI") $ 6,882,681 $ 5,528,093 24.5 % $ 5,187,288 32.7 % $ 6,882,681 $ 5,187,288 32.7 % Total Assets 9,462,639 8,111,524 16.7 7,470,478 26.7 9,462,639 7,470,478 26.7 Total Deposits 7,777,327 6,303,158 23.4 6,158,768 26.3 7,777,327 6,158,768 26.3 Tangible Book Value per Common Share(1)(2) 23.41 25.05 (6.5) 28.76 (18.6) 23.41 28.76 (18.6) Adjusted Tangible Book Value per Common Share(1) 29.13 29.92 (2.6) 28.26 3.1 29.13 28.26 3.1 Income Statement Net Income 16,243 21,311 (23.8) 26,978 (39.8) 58,237 80,224 (27.4) Adjusted Net Income(1) 31,087 21,949 41.6 26,978 15.2 74,170 78,902 (6.0) Pre-tax, Pre-Provision ("PTPP")(1) 36,005 29,570 21.8 29,299 22.9 91,209 91,131 0.1 Diluted EPS 0.57 0.90 (36.7) 1.14 (50.0) 2.30 3.40 (32.4) Adjusted Diluted EPS(1) 1.09 0.92 18.5 1.14 (4.4) 2.92 3.34 (12.6) Selected Ratios NIM - FTE 3.68 % 3.23 % 13.9 % 3.02 % 21.9 % 3.28 % 3.12 % 5.1 % NIM - FTE, adjusted(3) 3.61 3.20 12.8 2.94 22.8 3.25 3.05 6.6 Efficiency Ratio 60.97 59.89 1.8 57.21 6.6 61.08 56.09 8.9 Core Efficiency Ratio(1) 52.16 54.10 (3.6) 53.03 (1.6) 54.64 51.46 6.2 Return on average assets (annualized) ("ROA") 0.70 1.08 (35.2) 1.43 (51.0) 0.93 1.44 (35.4) Adjusted ROA (annualized)(1) 1.34 1.11 20.7 1.43 (6.3) 1.18 1.42 (16.9) PTPP ROA (annualized)(1) 1.55 1.49 4.0 1.56 (0.6) 1.45 1.64 (11.6) Return on average stockholders’ equity (annualized) ("ROE") 6.86 12.81 (46.4) 15.21 (54.9) 10.02 15.81 (36.6) Adjusted ROE (annualized)(1) 13.14 13.19 (0.4) 15.21 (13.6) 12.76 15.55 (17.9) PTPP ROE (annualized)(1) 15.22 17.77 (14.4) 16.52 (7.9) 15.69 17.96 (12.6) Allowance for Loan Credit Losses ("ALCL") to Total LHFI, adjusted (4) 1.29 1.25 3.2 1.63 (20.9) 1.29 1.63 (20.9) DOLLARS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS, UNAUDITED 6 (1) As used in this presentation, tangible book value per common share, adjusted tangible book value per common share, adjusted net income, PTPP, adjusted diluted EPS, core efficiency ratio, adjusted ROA, PTPP ROA, adjusted ROE and PTPP ROE are either non-GAAP financial measures or use a non-GAAP contributor in the formula. For a reconciliation of these alternative financial measures to their comparable GAAP measures, see slides 21-26 of this presentation. (2) A decline in accumulated other comprehensive loss during the YTD period ended September 30, 2022 negatively impacted total stockholders' equity and tangible common equity and caused tangible book value per common share to decline primarily due to the steepening of the short end of the yield curve that occurred during 2022 and its impact on our investment portfolio. (3) NIM - FTE, adjusted, is calculated for the quarter ended September 30, 2022, by removing the net Purchase Accounting ("PAA") accretion from the net interest income. For periods prior to September 30, 2022, it is calculated by removing average PPP loans from average interest-earning assets and removing the associated interest income (net of 35 basis points assumed cost of funds on average PPP loan balances) from net interest income. (4) The ALCL to total LHFI, adjusted is calculated at September 30, 2022, by excluding the ALCL for warehouse loans from the total LHFI ALCL in the numerator and excluding the warehouse loans from the LHFI in the denominator. For the periods prior to September 30, 2022, it is calculated by excluding the ALCL for warehouse loans from the total LHFI ALCL in the numerator and excluding the PPP and warehouse loans from the LHFI in the denominator. Due to their low-risk profile, mortgage warehouse loans require a disproportionately low allocation of the ALCL. PERFORMANCE HIGHLIGHTS - THIRD QUARTER 2022
ORIGIN BANCORP, INC. _______ TRENDING KEY MEASURES 47,785 92,246 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 2Q 22 3Q 22 Total Revenues ($) UNAUDITED Diluted EPS ($)Net Income ($) Total LHFI, Adjusted ($)(2) Total Deposits ($) 0.53 0.57 2Q 18 3Q 18 4Q 18 1Q 19 2Q 19 3Q 19 4Q 19 1Q 20 2Q 20 3Q 20 4Q 20 1Q 21 2Q 21 3Q 21 4Q 21 1Q 22 2Q 22 3Q 22 12,702 2Q 18 3Q 18 4Q 18 1Q 19 2Q 19 3Q 19 4Q 19 1Q 20 2Q 20 3Q 20 4Q 20 1Q 21 2Q 21 3Q 21 4Q 21 1Q 22 2Q 22 3Q 22 3,672 7,777 2Q 18 3Q 18 4Q 18 1Q 19 2Q 19 3Q 19 4Q 19 1Q 20 2Q 20 3Q 20 4Q 20 1Q 21 2Q 21 3Q 21 4Q 21 1Q 22 2Q 22 3Q 22 6,422 2Q 18 3Q 18 4Q 18 1Q 19 2Q 19 3Q 19 4Q 19 1Q 20 2Q 20 3Q 20 4Q 20 1Q 21 2Q 21 3Q 21 4Q 21 1Q 22 2Q 22 3Q 22 DOLLARS IN THOUSANDS DOLLARS IN THOUSANDS DOLLARS IN MILLIONS DOLLARS IN MILLIONS (1) As used in this presentation, pre-tax pre-provision earnings is a non-GAAP financial measure. For a reconciliation of non-GAAP financial measures to their comparable GAAP measures, see slides 21-26 of this presentation. (2)Total LHFI, Adjusted excludes mortgage warehouse loans for all periods presented and PPP loans for periods prior to September 30, 2022. 7 3,102 Pre-Tax Pre-Provision Earnings ($)(1) 15,773 36,005 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 2Q 22 3Q 22 DOLLARS IN THOUSANDS 16,243
ORIGIN BANCORP, INC. _______ TRENDING KEY MEASURES CONTINUED Efficiency Ratio (%) 60.97 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 2Q 22 3Q 22 UNAUDITED Net Charge Offs ($) 121 1,078 2Q 18 3Q 18 4Q 18 1Q 19 2Q 19 3Q 19 4Q 19 1Q 20 2Q 20 3Q 20 4Q 20 1Q 21 2Q 21 3Q 21 4Q 21 1Q 22 2Q 22 3Q 22 Net Charge Offs to Total Average LHFI (%)(1) 0.01 0.07 2Q 18 3Q 18 4Q 18 1Q 19 2Q 19 3Q 19 4Q 19 1Q 20 2Q 20 3Q 20 4Q 20 1Q 21 2Q 21 3Q 21 4Q 21 1Q 22 2Q 22 3Q 22 DOLLARS IN THOUSANDS Core Efficiency Ratio (%)(2) 63.51 52.16 2Q 18 3Q 18 4Q 18 1Q 19 2Q 19 3Q 19 4Q 19 1Q 20 2Q 20 3Q 20 4Q 20 1Q 21 2Q 21 3Q 21 4Q 21 1Q 22 2Q 22 3Q 22 21.07 2Q 18 3Q 18 4Q 18 1Q 19 2Q 19 3Q 19 4Q 19 1Q 20 2Q 20 3Q 20 4Q 20 1Q 21 2Q 21 3Q 21 4Q 21 1Q 22 2Q 22 3Q 22 Tangible Book Value per Common Share ($)(2)(3) (1) Annualized. (2) As used in this presentation, core efficiency ratio, tangible book value per common share, and adjusted 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 21-26 of this presentation. (3) A decline in accumulated other comprehensive loss during the YTD period ended September 30, 2022 negatively impacted total stockholders' equity and tangible common equity and caused tangible book value per common share to decline primarily due to the steepening of the short end of the yield curve that occurred during 2022 and its impact on our investment portfolio. 8 66.99 21.24 29.13 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 2Q 22 3Q 22 Adjusted Tangible Book Value per Common Share ($)(2) 23.41
ORIGIN BANCORP, INC. _______ ASSET AND STOCKHOLDERS' EQUITY GROWTH 1997 - 9/30/2022 UNAUDITED, DOLLARS IN MILLIONS Total Assets ($) 148 9,463 19 97 19 98 19 99 20 00 20 01 20 02 20 03 20 04 20 05 20 06 20 07 20 08 20 09 20 10 20 11 20 12 20 13 20 14 20 15 20 16 20 17 20 18 20 19 20 20 20 21 9/ 30 /2 02 2 Total Stockholders' Equity ($) 907 19 97 19 98 19 99 20 00 20 01 20 02 20 03 20 04 20 05 20 06 20 07 20 08 20 09 20 10 20 11 20 12 20 13 20 14 20 15 20 16 20 17 20 18 20 19 20 20 20 21 9/ 30 /2 02 2 CAGR 18.41% CAGR 19.05% 9 $100 $2,059 12 /3 1/ 96 12 /3 1/ 97 12 /3 1/ 98 12 /3 1/ 99 12 /3 1/ 00 12 /3 1/ 01 12 /3 1/ 02 12 /3 1/ 03 12 /3 1/ 04 12 /3 1/ 05 12 /3 1/ 06 12 /3 1/ 07 12 /3 1/ 08 12 /3 1/ 09 12 /3 1/ 10 12 /3 1/ 11 12 /3 1/ 12 12 /3 1/ 13 12 /3 1/ 14 12 /3 1/ 15 12 /3 1/ 16 12 /3 1/ 17 12 /3 1/ 18 12 /3 1/ 19 12 /3 1/ 20 12 /3 1/ 21 $0 $500 $1,000 $1,500 $2,000 $2,500 Total Shareholder Return (1) (1) Assumes $100 Invested on December 31, 1996, and dividends are reinvested. Data prior to May 9, 2018, is based upon private stock transactions and is not reflective of open market trades. 11 IPO
ORIGIN BANCORP, INC. _______ 10 1,741 1,956 2,247 2,620 4,382 1,067 1,127 1,343 1,545 1,766 806 674 829 904 1,075 1,415 395 DFW DFW-BTH Houston East Texas 2018 2019 2020 2021 3Q22 Deposit Trends by Texas Market ($) (2) Loan Trends by Texas Market ($) (1) TEXAS GROWTH STORY Texas Franchise Highlights DOLLARS IN MILLIONS, UNAUDITED • 25 branches throughout 5 counties in the 4th and 5th largest MSAs in the United States • Texas franchise represents 69% of LHFI, excluding mortgage warehouse loans, and 55% of deposits, excluding non-market-based deposits, at September 30, 2022. 1,395 1,854 2,574 3,132 4,271 772 989 1,581 1,925 1,666 526 623 865 993 1,207 1,166 913 DFW DFW- BTH Houston East Texas 2018 2019 2020 2021 3Q22 CAGR 27.9% CAGR 34.8% (1) Excludes mortgage warehouse loans and, for all periods prior to 3Q22, PPP loans. (2) Non-market based deposits are not included in state deposits.
ORIGIN BANCORP, INC. _______ 11 LOAN GROWTH 3,581 3,869 4,094 4,498 6,422 3,581 3,869 4,094 4,498 5,221 0 0 — 1,201 Origin BTH 2018 2019 2020 2021 3Q22 2,000 3,000 4,000 5,000 6,000 7,000 LHFI Key Data DOLLARS IN MILLIONS, UNAUDITED IDT 582632 • LHFI, excluding mortgage warehouse lines of credit, increased 79.3% from 12/31/2018, with a CAGR of 16.9%. Total C&I, owner occupied CRE and C&D, increased 67.3% from 12/31/2018, with a CAGR of 14.7%. • Total LHFI at 9/30/22, excluding mortgage warehouse lines of credit, were $6.42 billion, with the BTH merger contributing $1.20 billion, or 24.04%, of the total LHFI growth, net of purchase accounting adjustments. • Total mortgage warehouse lines of credit were $460.6 million, or 7.2%, of total LHFI at September 30, 2022. LHFI Growth excluding MW LOC ($) (1) CAGR: 16.9% 1,803 1,902 1,833 2,032 3,017 1,803 1,902 1,833 2,032 2,372 645 Origin BTH 2018 2019 2020 2021 3Q22 1,000 2,000 3,000 437 582632 C&I, Owner Occupied CRE and C&D Growth ($) (1) CAGR: 14.7% (1) Periods prior to 3Q22 exclude PPP loans.
ORIGIN BANCORP, INC. _______ Real Estate & Construction: 7% Retail Shopping: 6% Office Building: 5% Healthcare: 3% Multi-family: 2% Hotel: 1% Restaurant: 1% Finance & Insurance: 1% Gov. & Edu.: 1% Misc: 2% Commercial & Industrial ("C&I") 28% Owner Occupied Construction/ Land/Land Development ("C&D"): 4% Owner Occupied Commercial Real Estate ("CRE"): 12% Mtg. WH LOC: 7% Non-Owner Occupied C&D: 9% Non-Owner Occupied CRE: 20% Residential Real Estate & Consumer 20% Real Estate & Construction: 9% Mtg. WH LOC: 7% Finance & Insurance: 5% Transportation Svcs: 4% Retail Dealers: 2% Energy: 2% Healthcare: 2% Banks: 2% Restaurants: 2% Commercial Svcs: 2% Retail Shopping: 2% Consumer Svcs: 2% Wholesale Distribution: 2% Professional Svcs: 2% Materials&Commodities: 1% Misc: 5% 12 WELL DIVERSIFIED LOAN PORTFOLIO (Dollars in thousands) 3Q22 2Q22 1Q22 4Q21 3Q21 C&I (2) $ 1,967,037 $ 1,429,338 $ 1,326,443 $ 1,348,474 $ 1,218,246 Owner Occupied CRE 800,981 609,358 588,279 523,655 473,558 Owner Occupied C&D 248,602 187,249 179,074 160,131 151,650 Mtg. WH LOC 460,573 531,888 503,249 627,078 713,339 Total Commercial 3,477,193 2,757,833 2,597,045 2,659,338 2,556,793 Non-Owner Occupied CRE 1,373,366 1,299,696 1,213,103 1,169,857 1,116,961 Non-Owner Occupied C&D 604,709 448,307 414,276 369,952 367,270 Residential Real Estate 1,399,182 1,005,623 922,054 909,739 913,411 Consumer Loans 28,231 15,733 15,774 16,684 15,896 PPP Loans (2) — 901 32,154 105,761 216,957 Total Loans $ 6,882,681 $ 5,528,093 $ 5,194,406 $ 5,231,331 $ 5,187,288 Loan Portfolio Details Non-Owner Occupied CRE and C&D: (1) $1,978 C&I, Owner Occupied CRE and C&D, MW LOC: (1) $3,477 C&I, Owner Occupied CRE and C&D, Mtg. WH LOC: 51% Non-Owner Occupied CRE and C&D: 29% (1) Does not include loans held for sale. (2) PPP loans are immaterial at 3Q22. Loan Composition at 9/30/2022: (1) $6,883 DOLLARS IN MILLIONS, UNAUDITED
ORIGIN BANCORP, INC. _______ 13 3,658 3,616 3,976 3,767 4,157 1,966 2,111 2,218 2,289 2,583 582 562 535 503 6706,206 6,289 6,729 6,559 7,410 Interest-bearing Demand Noninterest-bearing Time Deposits 3Q21 4Q21 1Q22 2Q22 3Q22 Average Deposits ($) DEPOSIT TRENDS 0.67 0.59 0.54 0.49 0.51 0.30 0.28 0.26 0.29 0.64 0.21 0.19 0.17 0.19 0.41 Time Deposits Cost of Interest-bearing Deposits Cost of Total Deposits 3Q21 4Q21 1Q22 2Q22 3Q22 Deposit Cost Trends (QTD Annualized) (%) DOLLARS IN MILLIONS, UNAUDITED IDT • Total deposits increased $1.47 billion compared to the linked quarter, or 23.4%. There were $1.57 billion in deposits acquired in the BTH merger. • The cost of total deposits increased 20 basis points from 0.21% in 3Q21 to 0.41% in 3Q22. Average quarterly fed funds rate increased 209 basis points from 0.09% at 3Q21 to 2.18% at 3Q22. • Average noninterest-bearing deposits increased $616.7 million compared to 3Q21 and represented 34.9% of total average deposits. • There were $248.6 million in new and renewed CD's during 3Q22 with a weighted average interest rate of 0.87%. (0.50) 0.03 0.16 0.12 0.77 2.18 Deposit Beta Average Quarterly Fed Funds Rate 1Q22 2Q22 3Q22 Deposit Beta (%)
ORIGIN BANCORP, INC. _______ 1.52 1.35 1.36 0.94 1.01 Classified LHFI / Total LHFI, adjusted (%) Net Charge-Offs / Average LHFI excl. PPP Loans (annualized) (%) 3Q21 4Q21 1Q22 2Q22 3Q22 0.24 0.22 0.14 0.12 0.49 0.49 0.41 0.25 0.52 0.50 0.42 0.13 Nonperforming LHFI / LHFI, excl. PPP loans (%) Past due LHFI / LHFI, excl. PPP loans (%) 3Q21 4Q21 1Q22 2Q22 3Q22 14 CREDIT QUALITY Asset Quality Trends (%) Allowance for Loan Credit Losses ("ALCL") 69,947 64,586 62,173 63,123 83,359 1.35 1.63 1.43 1.33 1.25 ALCL as a percentage of LHFI, adjusted (%) ALCL as a percentage of LHFI (%) ALCL ($) 3Q21 4Q21 1Q22 2Q22 3Q22 • BTH merger-related non-PCD provision expense totaled $14.9 million, which was included in the provision for credit loss expense for 3Q22 of $16.9 million, compared to a provision expense of $3.5 million in 2Q22, and net benefit of $3.9 million in 3Q21. • The BTH merger-related CECL allocation totaled $20.4 million. • ALCL to nonperforming LHFI is 594.11% at 3Q22, 448.16% at 2Q22, and 284.86% at 3Q21. DOLLARS IN THOUSANDS, UNAUDITED (1) PPP loans are immaterial for the quarter ended September 30, 2022; therefore, metrics for 3Q22 are calculated using unadjusted LHFI. 0.20(1) 0.16(1) 0.07(1) (2) The ALCL to total LHFI, adjusted, is calculated at September 30, 2022, by excluding the ALCL for warehouse loans from the total LHFI ALCL in the numerator and excluding the warehouse loans from the LHFI in the denominator. For the periods prior to September 30, 2022, it is calculated by excluding the ALCL for warehouse loans from the total LHFI ALCL in the numerator and excluding the PPP and warehouse loans from the LHFI in the denominator. Due to their low-risk profile, mortgage warehouse loans require a disproportionately low allocation of the ALCL. 1.23 1.211.20 1.14 1.29(2)
ORIGIN BANCORP, INC. _______ 15 YIELDS, COSTS AND LHFI PROFILE Yield on LHFI (%) 4.05 4.11 4.08 4.26 4.94 3.25 3.25 3.29 3.94 5.36 1.02 2.47 0.05 0.05 0.71 2.14 Yield on LHFI Yield on LHFI excl. PPP Loans and PAA Avg. Prime Rate Avg. 1M LIBOR Avg. SOFR 3Q21 4Q21 1Q22 2Q22 3Q22 Cost of Funds (%) (1) Yield on LHFI excl. PPP loans and PAA (purchase accounting adjustments) reflects the exclusion of PPP loans for periods prior to 3Q22 and the exclusion of PAA for 3Q22. 0.37 0.34 0.33 0.35 0.62 0.41 0.63 Cost of Total Deposits & Borrowings Cost of Interest Bearing Deposits Cost of Total Deposits Cost of Total Deposits & Borrowings excl. PAA 3Q21 4Q21 1Q22 2Q22 3Q22 0.30 0.28 0.26 0.21 0.19 0.17 0.19 0.29 • LHFI with fixed rate: 42%; LHFI with floating rate: 58% • $794.7 million LIBOR-based, $2.1 billion Prime-based and $411.6 million SOFR-based loans at 3Q22. 0.09 0.09 3.95 4.21 4.86(1) (1) 0.64 3.98 3.94 0.23 0.09
ORIGIN BANCORP, INC. _______ 16 DOLLARS IN THOUSANDS, UNAUDITED 52,541 54,180 52,502 59,504 78,523 42,884 45,035 46,202 54,241 71,494 5,962 5,385 3,897 4,544 5,614 3,695 3,760 2,403 719 1,415 3.02 3.06 2.86 3.23 3.68 2.87 2.85 2.70 3.14 3.56 Net Interest Income excl. MW LOC, adjusted ($) MW LOC Net Interest Income ($) PPP Net Interest Income ($) Net Purchase Accounting Amortization ($) NIM (FTE) (%) NIM (FTE) excl. MW LOC, adjusted (%) 3Q21 4Q21 1Q22 2Q22 3Q22 NET INTEREST INCOME AND NIM TRENDS 78,523 59,504 11,669 9,834 1,415 1,343 1,070 (4,419) (1,325) (568) 2Q 22 RE Lo an s C&I L oa ns PAA Inv es tm en t S ec . Mtg. W H LO C Sav ing s & IB Tr an sa cti on A cc ts. FH LB & O the r Bor ro wing s Othe r 3Q 22 50,000 60,000 70,000 80,000 3.68 3.23 0.27 0.26 0.07 0.07 0.07 0.03 (0.21) (0.06) (0.05) 2Q 22 C&I L oa ns RE Lo an s IB B al. D FB PAA Inv es tm en t S ec . Mtg. W H LO C Sav ing s & IB Tr an sa cti on A cc ts. FH LB & O the r Bor ro wing s Othe r 3Q 22 3.00 3.50 4.00 Net Interest Income Changes - 3Q22 ($) NIM Changes - 3Q22 (%) (1) Net interest income excl. MW LOC, adjusted, and NIM (FTE) excl. MW LOC, adjusted, excludes PPP income from periods prior to 3Q22, and PAA net accretion for 3Q22. (1) (1)
ORIGIN BANCORP, INC. _______ 1,133 1,505 1,662 1,869 1,865 1.76 1.63 1.59 1.85 2.12 Total Securities ($) Yield (%) 3Q21 4Q21 1Q22 2Q22 3Q22 Investment Securities Average Balance and Yield INVESTMENT SECURITIES DOLLARS IN MILLIONS, UNAUDITED • The available for sale securities portfolio ended 3Q22 with a net unrealized loss of $223.0 million, pre-tax, largely due to the steepening of the short end of the yield curve during the current year. • BTH merger added $456.8 million in AFS securities, $447.5 million of these securities were sold and the funds were primarily used to pay down short-term FHLB advances. • Total portfolio weighted average effective duration was 5.2 years as of 9/30/2022. 17 11.9 5.7 (65.9) (116.0) (175.2) 3Q21 4Q21 1Q22 2Q22 3Q22 Accumulated Other Comprehensive (Loss) Income(1) ($) Sector Fair Value % Market Price WAL Effective Duration Treasury/ Agency $ 250.1 15.0 % 94.02 2.72 2.63 MBS 690.0 41.2 89.16 5.31 4.87 CMO 191.6 11.5 89.32 5.14 4.71 Municipal 382.0 22.8 91.55 9.38 7.71 Corporate/ Other 158.5 9.5 95.25 5.69 4.83 Total $ 1,672.2 100 % 91.03 5.87 5.17 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 2Q22 3Q22 18 Net Interest Income Noninterest Income 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 Noninterest Income ($)(1) Net Interest Income + Noninterest Income ($) NET REVENUE DISTRIBUTION DOLLARS IN THOUSANDS, UNAUDITED Components of Other Noninterest Income 92,246 10,615 3Q22 2Q22 1Q22 4Q21 3Q21 Gain on Fair Value of Lincoln Agency $ — $ — $ — $ 5,200 $ — Limited Partnership Investment Income 112 282 (363) 50 3,078 Swap Fee Income (loss)(2) 25 1 139 (285) 727 Valuation Income (72) 1 (151) 11 (145) Gain on Sale of Securities 1,664 — — 75 — Other 2,524 1,611 1,731 1,973 2,111 GNMA MSR impairment(1) (1,950) — — — — Total $ 2,303 $ 1,895 $ 1,356 $ 7,024 $ 5,771 47,785 13,723 (1) Mortgage banking revenue for 3Q22 was adjusted for the $1.95 million impairment on the GNMA MSR portfolio. (2) 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 $296,000.
ORIGIN BANCORP, INC. _______ 39,165 40,346 42,774 44,150 56,241 23,629 24,718 26,488 27,310 31,834 4,353 4,306 4,427 4,514 5,399 2,329 2,302 2,486 2,413 2,689 1,598 1,849 1,560 2,162 2,121 1,949 1,880 1,305 1,517 1,599 3,614 5,307 5,291 5,937 5,427 8,985 Salaries and Employee Benefits Occupancy and Equipment, net Data Processing Office and Operations Loan-related Expenses Merger Transaction Expense Other 3Q21 4Q21 1Q22 2Q22 3Q22 19 Efficiency Ratios (%) (1) NONINTEREST EXPENSE ANALYSIS DOLLARS IN THOUSANDS, UNAUDITED Noninterest Expense Composition ($) Consolidated Efficiency Ratio Core Efficiency Ratio 3Q21 4Q21 1Q22 2Q22 3Q22 53 .0 3 % 57 .2 1 % 57 .2 5 % 56 .9 2 % 62 .5 3 % 59 .8 9 % 58 .9 3 % 54 .1 0 % Operating Leverage (%) (1) As used in this presentation, core efficiency ratio is a non-GAAP financial measure. For a reconciliation of non-GAAP financial measures to their comparable GAAP measures, see slides 21-26 of this presentation. E FF IC IE N C Y R A TI O (% ) N IE / A V E R A G E A S S E TS (% ) 2.28 2.16 2.17 2.03 2.08 2.12 2.16 2.23 2.42 56.41 57.86 54.49 56.69 57.21 56.92 62.53 59.89 60.97 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 40 60 80 100 1.5 2.0 2.5 3.0 60 .9 7 % 52 .1 6 % 571 807
ORIGIN BANCORP, INC. _______ 9.2 9.2 8.8 9.1 9.6 9.5 9.7 9.3 9.5 9.1 Company Level Origin Bank Level 3Q21 4Q21 1Q22 2Q22 3Q22 11.4 11.4 11.3 11.0 10.7 11.8 12.0 11.9 11.4 10.9 Company Level Origin Bank Level 3Q21 4Q21 1Q22 2Q22 3Q22 20 CAPITAL Bank Level Company Level Sub-debt Impact 15.0 14.8 14.6 14.1 14.0 14.0 14.1 13.9 13.4 12.8 Company Level Origin Bank Level 3Q21 4Q21 1Q22 2Q22 3Q22 Total Capital Changes - 3Q22 ($)(1) 936.7 306.3 43.9 33.0 6.7 2.0 (0.9) (4.6) (174.8) 2Q 22 Ban k A cq uis itio n Sub ord ina ted D eb t Net Inc om e e xc l. c red it l os s a cc rua ls Ban k A cq uis itio n A CL A dju stm en ts Othe r Opti on E xe rci se s Divi de nd s Goo dw ill an d I nta ng ibl es 3Q 22 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) September 30, 2022 ratios are estimated. 1,148.3 Dollars in Millions
ORIGIN BANCORP, INC. _______ Calculation of PTPP Earnings: 3Q22 2Q22 1Q22 4Q21 3Q21 2Q21 1Q21 4Q20 3Q20 Net Income $ 16,243 $ 21,311 $ 20,683 $ 28,322 $ 26,978 $ 27,733 $ 25,513 $ 17,552 $ 13,095 Plus: Provision for Credit Losses 16,942 3,452 (327) (2,647) (3,921) (5,609) 1,412 6,333 13,633 Plus: Income Tax Expense 2,820 4,807 5,278 4,860 6,242 6,774 6,009 4,431 3,206 PTPP Earnings $ 36,005 $ 29,570 $ 25,634 $ 30,535 $ 29,299 $ 28,898 $ 32,934 $ 28,316 $ 29,934 2Q20 1Q20 4Q19 3Q19 2Q19 1Q19 4Q18 3Q18 2Q18 Net Income $ 4,957 $ 753 $ 12,827 $ 14,617 $ 12,283 $ 14,155 $ 13,178 $ 12,318 $ 12,702 Plus: Provision for Credit Losses 21,403 18,531 2,377 4,201 1,985 1,005 1,723 504 311 Plus: Income Tax Expense 786 (427) 3,175 3,620 2,782 3,089 2,725 2,568 2,760 PTPP Earnings $ 27,146 $ 18,857 $ 18,379 $ 22,438 $ 17,050 $ 18,249 $ 17,626 $ 15,390 $ 15,773 Calculation of Tangible Book Value per Common Share(1) and Adjusted Tangible Book Value per Common Share: 3Q22 2Q22 1Q22 4Q21 3Q21 2Q21 1Q21 4Q20 3Q20 Total Common Stockholders' Equity $ 907,024 $ 646,373 $ 676,865 $ 730,211 $ 705,667 $ 688,235 $ 656,355 $ 647,150 $ 627,637 Less: Goodwill 136,793 34,153 34,153 34,368 26,741 26,741 26,741 26,741 26,741 Less: Other Intangible Assets, net 52,384 15,900 16,425 16,962 3,089 3,283 3,505 3,739 3,976 Tangible Common Equity $ 717,847 $ 596,320 $ 626,287 $ 678,881 $ 675,837 $ 658,211 $ 626,109 $ 616,670 $ 596,920 Less: Accumulated Other Comprehensive (Loss) Income (175,233) (115,979) (65,890) 5,729 11,872 18,914 12,185 25,649 21,998 Adjusted Tangible Common Equity 893,080 712,299 692,177 673,152 663,965 639,297 613,924 591,021 574,922 Divided by Common Shares Outstanding at Period End 30,661,734 23,807,677 23,748,748 23,746,502 23,496,058 23,502,215 23,488,884 23,506,312 23,506,586 Tangible Book Value per Common Share(1) $ 23.41 $ 25.05 $ 26.37 $ 28.59 $ 28.76 $ 28.01 $ 26.66 $ 26.23 $ 25.39 Adjusted Tangible Book Value per Common Share $ 29.13 $ 29.92 $ 29.15 $ 28.35 $ 28.26 $ 27.20 $ 26.14 $ 25.14 $ 24.46 2Q20 1Q20 4Q19 3Q19 2Q19 1Q19 4Q18 3Q18 2Q18 Total Common Stockholders' Equity $ 614,781 $ 606,631 $ 599,362 $ 588,363 $ 584,293 $ 568,122 $ 549,779 $ 531,919 $ 519,356 Less: Goodwill 26,741 26,741 26,741 26,741 26,741 26,741 26,741 26,741 22,192 Less: Other Intangible Assets, net 4,212 4,500 4,799 5,101 5,403 5,756 6,120 6,487 1,921 Tangible Common Equity $ 583,828 $ 575,390 $ 567,822 $ 556,521 $ 552,149 $ 535,625 $ 516,918 $ 498,691 $ 495,243 Less: Accumulated Other Comprehensive (Loss) Income 20,613 15,822 6,333 6,690 5,619 1,524 (2,480) (6,197) (4,052) Adjusted Tangible Common Equity 563,215 559,568 561,489 549,831 546,530 534,101 519,398 504,888 499,295 Divided by Common Shares Outstanding at Period End 23,501,233 23,475,948 23,480,945 23,481,781 23,774,238 23,745,985 23,726,559 23,621,235 23,504,063 Tangible Book Value per Common Share(1) $ 24.84 $ 24.51 $ 24.18 $ 23.70 $ 23.22 $ 22.56 $ 21.79 $ 21.11 $ 21.07 Adjusted Tangible Book Value per Common Share $ 23.97 $ 23.84 $ 23.91 $ 23.42 $ 22.99 $ 22.49 $ 21.89 $ 21.37 $ 21.24 21 DOLLARS IN THOUSANDS, UNAUDITED RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (1) A decline in accumulated other comprehensive loss during the YTD period ended September 30, 2022 negatively impacted total stockholders' equity and tangible common equity and caused tangible book value per common share to decline primarily due to the steepening of the short end of the yield curve that occurred during 2022 and its impact on our investment portfolio.
ORIGIN BANCORP, INC. _______ Calculation of Core Efficiency Ratio: 3Q22 2Q22 1Q22 4Q21 3Q21 2Q21 1Q21 4Q20 3Q20 Net Interest Income $ 78,523 $ 59,504 $ 52,502 $ 54,180 $ 52,541 $ 54,292 $ 55,239 $ 51,819 $ 50,617 Less: Insurance and Mortgage Net Interest Income 1,208 1,082 875 946 1,048 979 1,003 1,236 1,125 Total Noninterest Income 13,723 14,216 15,906 16,701 15,923 12,438 17,131 15,381 18,051 Less: Insurance and Mortgage Noninterest Income 4,737 8,047 10,552 5,683 6,179 5,815 8,348 9,326 12,741 Less: Gain on fair value of the Lincoln Agency — — — 5,200 — — — — — — — — — Less: Gain on sale of securities, net 1,664 — — 75 — 5 1,668 225 301 Less: Other Noninterest income — — — — — — — — — — — — — — — — — Adjusted Total Revenue $ 84,637 $ 64,591 $ 56,981 $ 58,977 $ 61,237 $ 59,931 $ 61,351 $ 56,413 $ 54,501 Total Noninterest Expense $ 56,241 $ 44,150 $ 42,774 $ 40,346 $ 39,165 $ 37,832 $ 39,436 $ 38,884 $ 38,734 Less: Insurance and Mortgage Noninterest Expense 8,479 8,397 8,626 6,580 6,688 6,964 7,252 7,195 7,746 Less: Merger and acquisition expense 3,614 807 571 — — — — — — — — — — Less: Other Noninterest Expense — — — — — — — — — — — 1,613 — — Adjusted Total Noninterest Expense $ 44,148 $ 34,946 $ 33,577 $ 33,766 $ 32,477 $ 30,868 $ 30,571 $ 31,689 $ 30,988 Core Efficiency Ratio 52.16 % 54.10 % 58.93 % 57.25 % 53.03 % 51.51 % 49.83 % 56.17 % 56.86 % 2Q20 1Q20 4Q19 3Q19 2Q19 1Q19 4Q18 3Q18 2Q18 Net Interest Income $ 46,290 $ 42,810 $ 44,095 $ 44,622 $ 42,969 $ 42,026 $ 42,061 $ 39,497 $ 37,170 Less: Insurance and Mortgage Net Interest Income 1,204 872 735 776 457 346 409 359 189 Total Noninterest Income 19,076 12,144 10,818 12,880 11,176 11,604 10,588 10,237 10,615 Less: Insurance and Mortgage Noninterest Income 13,826 6,456 5,787 6,295 6,288 6,116 4,769 5,927 4,143 Less: Gain on sale of securities, net — 54 — 20 — — (8) — — Less: Other Noninterest income 316 367 1,977 Adjusted Total Revenue $ 50,336 $ 47,256 $ 48,391 $ 50,411 $ 47,033 $ 47,168 $ 47,479 $ 43,448 $ 41,476 Total Noninterest Expense $ 38,220 $ 36,097 $ 36,534 $ 35,064 $ 37,095 $ 35,381 $ 35,023 $ 34,344 $ 32,012 Less: Insurance and Mortgage Noninterest Expense 7,944 6,463 6,432 6,435 6,343 6,096 6,429 7,055 5,670 Less: Merger and acquisition expense — — — — — — — — — — — — — — — — — Less: Other Noninterest Expense — — — — — 1,037 — — — — — — — — — Adjusted Total Noninterest Expense $ 30,276 $ 29,634 $ 30,102 $ 27,592 $ 30,752 $ 29,285 $ 28,594 $ 27,289 $ 26,342 Core Efficiency Ratio 60.15 % 62.71 % 62.21 % 54.73 % 65.38 % 62.09 % 60.22 % 62.81 % 63.51 % 22 DOLLARS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS, UNAUDITED RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
ORIGIN BANCORP, INC. _______ 3Q22 2Q22 3Q21 Calculation of adjusted net income: Net interest income after provision for credit losses $ 61,581 $ 56,052 $ 56,462 Add: CECL provision for non-PCD loans 14,890 — — Adjusted net interest income after provision for credit losses 76,471 56,052 56,462 Total noninterest income 13,723 14,216 15,923 Less: GNMA MSR impairment (1,950) — — Less: Gain on sales of securities, net 1,664 — — Adjusted total noninterest income 14,009 14,216 15,923 Total noninterest expense 56,241 44,150 39,165 Less: Merger and acquisition expense 3,614 807 — Adjusted total noninterest expense 52,627 43,343 39,165 Income tax expense 2,820 4,807 6,242 Add: Income tax expense 3,946 169 — Adjusted income tax expense 6,766 4,976 6,242 Adjusted Net Income $ 31,087 $ 21,949 $ 26,978 Calculation of adjusted ROA and adjusted ROE Adjusted Net Income $ 31,087 $ 21,949 $ 26,978 Divided by number of days in the quarter 92 91 92 Multiplied by the number of days in the year 365 365 365 Annualized adjusted net income $ 123,334 $ 88,037 $ 107,032 Divided by total average assets $ 9,202,421 $ 7,944,720 $ 7,464,813 Adjusted ROA (annualized) 1.34 % 1.11 % 1.43 % Divided by total average stockholders' equity $ 938,752 $ 667,323 $ 703,605 Adjusted ROE (annualized) 13.14 % 13.19 % 15.21 % Calculation of adjusted EPS and Dilutive EPS: Numerator: Adjusted Net Income $ 31,087 $ 21,949 $ 26,978 Denominator: Weighted average common shares outstanding(!) 28,298,984 23,740,611 23,429,705 Weighted average diluted common shares outstanding(1) 28,481,619 23,788,164 23,613,010 Adjusted basic earnings per share $ 1.10 $ 0.92 $ 1.15 Adjusted diluted earnings per share 1.09 0.92 1.14 23 DOLLARS IN THOUSANDS, UNAUDITED RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (1) Reflects shares issued in conjunction with the BTH merger, which was effective August 1, 2022.
ORIGIN BANCORP, INC. _______ 3Q22 2Q22 3Q21 Calculation of PTPP Earnings: Net Income $ 16,243 $ 21,311 $ 26,978 Add: Provision for Credit Losses 16,942 3,452 (3,921) Add: Income Tax Expense 2,820 4,807 6,242 PTPP Earnings $ 36,005 $ 29,570 $ 29,299 Calculation of PTPP ROA and PTPP ROE: PTPP Earnings $ 36,005 $ 29,570 $ 29,299 Divided by Number of Days in the Quarter 92 91 92 Multiplied by the Number of Days in the Year 365 365 365 PTPP Earnings, annualized $ 142,846 $ 118,605 $ 116,241 Divided by Total Average Assets 9,202,421 7,944,720 7,464,813 PTPP ROA (Annualized) 1.55 % 1.49 % 1.56 % Divided by Total Average Stockholders' Equity $ 938,752 $ 667,323 $ 703,605 PTPP ROE (Annualized) 15.22 % 17.77 % 16.52 % 24 DOLLARS IN THOUSANDS, UNAUDITED RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
ORIGIN BANCORP, INC. _______ Nine Months Ended September 30, 2022 September 30, 2021 Calculation of PTPP earnings: Net income $ 58,237 $ 80,224 Add: Provision for credit losses 20,067 (8,118) Add: Income tax expense 12,905 19,025 PTPP earnings $ 91,209 $ 91,131 Calculation of PTPP ROA and PTPP ROE: PTPP earnings $ 91,209 $ 91,131 Divided by number of days in the quarter 273 273 Multiplied by the number of days in the year 365 365 Annualized PTPP earnings $ 121,946 $ 121,842 Divided by total average assets 8,401,701 7,441,055 PTPP ROA 1.45 % 1.64 % Divided by total average stockholders' equity $ 776,985 $ 678,223 PTPP ROE 15.69 % 17.96 % Calculation of core efficiency ratio: Net interest income $ 190,529 $ 162,072 Less: Insurance and mortgage net interest income 3,165 3,030 Noninterest income 43,845 45,492 Less: Insurance and mortgage noninterest income 23,336 20,342 Less: Gain on sale of securities, net 1,664 1,673 Adjusted total revenue $ 206,209 $ 182,519 Total noninterest expense $ 143,165 $ 116,433 Less: Insurance and mortgage noninterest expense 25,502 20,904 Less: Merger and acquisition expense 4,992 — Less: Other noninterest expense — 1,613 Adjusted total expense $ 112,671 $ 93,916 GAAP efficiency ratio 61.08 % 56.09 % Core efficiency ratio 54.64 51.46 25 DOLLARS IN THOUSANDS, UNAUDITED RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
ORIGIN BANCORP, INC. _______ Nine Months Ended September 30, 2022 September 30, 2021 Calculation of adjusted net income: Net interest income after provision for credit losses $ 170,462 $ 170,190 Add: CECL provision on non-PCD loans 14,890 — Adjusted net interest income after provision for credit losses 185,352 170,190 Total noninterest income 43,845 45,492 Less: GNMA MSR impairment (1,950) — Less: Gain on sales of securities, net 1,664 1,673 Adjusted total noninterest income 44,131 43,819 Total noninterest expense 143,165 116,433 Less: Merger and acquisition expense 4,992 — Adjusted total noninterest expense 138,173 116,433 Income tax expense 12,905 19,025 Add: Income tax expense 4,235 (351) Adjusted income tax expense 17,140 18,674 Adjusted Net Income $ 74,170 $ 78,902 Calculation of adjusted ROA and adjusted ROE: Adjusted Net Income $ 74,170 $ 78,902 Divided by number of days in the quarter 273 273 Multiplied by number of days in the year 365 365 Annualized adjusted net income $ 99,165 $ 105,492 Divided by total average assets 8,401,701 7,441,055 Adjusted ROA (annualized) 1.18 % 1.42 % Divided by total average stockholders' equity $ 776,985 $ 678,223 Adjusted ROE (annualized) 12.76 % 15.55 % Calculation of adjusted EPS and Dilutive EPS: Numerator: Adjusted Net Income $ 74,170 $ 78,902 Denominator: Weighted average common shares outstanding(1) 25,263,681 23,413,794 Weighted average diluted common shares outstanding(1) 25,366,807 23,606,597 Adjusted basic earnings per share $ 2.94 $ 3.37 Adjusted diluted earnings per share 2.92 3.34 26 RECONCILIATION OF NON-GAAP FINANCIAL MEASURES DOLLARS IN THOUSANDS, UNAUDITED (1) Reflects shares issued in conjunction with the BTH merger, which was effective August 1, 2022.
Exhibit 99.3
FOR IMMEDIATE RELEASE
October 26, 2022
Origin Bancorp, Inc. Announces Declaration of Quarterly Cash Dividend
RUSTON, LOUISIANA (October 26, 2022) - Origin Bancorp, Inc. (Nasdaq: OBNK) ("Origin"), the holding company for Origin Bank, today announced that on October 26, 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 November 30, 2022, to stockholders of record as of the close of business on November 16, 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 59 banking centers located from Dallas/Fort Worth, East Texas and Houston, across North Louisiana and into Mississippi. 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 (economic or otherwise), as well as the impact of the actions taken by governmental authorities to address the impact of COVID-19 on the United States economy and 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