UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported)
(Exact name of Registrant as specified in its charter)
| (State or other jurisdiction of incorporation) | (Commission File No.) | (I.R.S. Employer Identification No.) | ||||||||||||
| (Address of principal executive offices including zip code) | ||
(318 ) 255-2222
| (Registrant's telephone number, including area code) | ||
| (Former name or former address, if changed since last report) | ||
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
| Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). | |||||
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨ | |||||
| ITEM 2.02 | Results of Operations and Financial Condition | ||||
On January 25, 2023, Origin Bancorp, Inc. (the "Company" or the "Registrant") issued a press release announcing its fourth quarter and 2022 full year results of operations. A copy of the press release is attached hereto as Exhibit 99.1, which is incorporated herein by reference.
On Thursday, January 26, 2023, at 8:00 a.m. Central Time, the Company will host an investor conference call and webcast to review its fourth quarter and 2022 full year 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 January 25, 2023. The presentation materials are attached hereto as Exhibit 99.2, which is incorporated herein by reference.
As provided in General Instructions B.2 to Form 8-K, the information furnished in Item 2.02, Exhibit 99.1 and Exhibit 99.2 of this Current Report on Form 8-K shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that section, and such information shall not be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
| ITEM 8.01 | Other Events | ||||
On January 25, 2023, 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 February 28, 2023, to stockholders of record as of the close of business on February 15, 2023. 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: January 25, 2023 | 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 FOURTH QUARTER AND 2022 FULL YEAR
RUSTON, Louisiana (January 25, 2023) - Origin Bancorp, Inc. (Nasdaq: OBNK) (“Origin” or the “Company”), the holding company for Origin Bank (the “Bank”), today announced net income of $29.5 million, or $0.95 diluted earnings per share for the quarter ended December 31, 2022, compared to net income of $16.2 million, or $0.57 diluted earnings per share, for the quarter ended September 30, 2022, and compared to net income of $28.3 million, or $1.20 diluted earnings per share for the quarter ended December 31, 2021. Adjusted net income(1) for the quarter ended December 31, 2022, was $30.4 million, or $0.99 adjusted diluted earnings per share(1). Adjusted pre-tax, pre-provision ("adjusted PTPP")(1) earnings was $42.1 million.
Net income for the year ended December 31, 2022, was $87.7 million, reflecting diluted earnings per share for the year ended December 31, 2022, of $3.28 representing a decrease of $1.32, or 28.7%, from diluted earnings per share of $4.60 for the year ended December 31, 2021.
“As I look back on the past quarter and 2022 as a whole, I’m very pleased with where we are as a company and how we are operating from a position of strength,” said Drake Mills, chairman, president, and CEO of Origin Bancorp, Inc. “We showed positive financial results for the quarter and the year, bolstered our Texas franchise with the partnership with BTH, attracted high-quality bankers across our footprint, and significantly grew our loan portfolio while maintaining our conservative credit culture.”
(1) Adjusted net income, adjusted diluted earnings per share and adjusted PTPP earnings 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.
Financial Highlights
•The fully tax-equivalent net interest margin (“NIM”) was 3.81% for the quarter ended December 31, 2022, reflecting a 13 basis point increase from the linked quarter and a 75 basis point increase from the quarter ended December 31, 2021. The fully tax-equivalent NIM, adjusted(1), which excludes the net purchase accounting accretion from the net interest income for the quarter ended December 31, 2022, was 3.73%, reflecting a 12 basis point increase from the linked quarter.
•Net interest income for the quarter ended December 31, 2022, was $84.7 million, reflecting a $6.2 million, or 7.9% increase, compared to the linked quarter, and a $30.6 million, or 56.4% increase, compared to the prior year quarter.
•The Company's annualized returns on average assets and average equity were 1.23% and 12.80%, respectively, for the quarter ended December 31, 2022, compared to 0.70% and 6.86%, respectively, for the linked quarter.
•Excluding mortgage warehouse lines of credit, total LHFI were $6.81 billion, reflecting an increase of $383.0 million, or 6.0%, compared to September 30, 2022.
•Provision for credit losses was a net expense of $4.6 million for the quarter ended December 31, 2022, compared to a net expense of $16.9 million for the linked quarter. The decrease was primarily due to the merger with BTH, which required a Day 1 Current Expected Credit Loss ("CECL") loan provision of $14.9 million during the linked quarter.
•The allowance for loan credit losses ("ALCL") to total LHFI, adjusted (2) was 1.28% at December 31, 2022, compared to 1.29% at September 30, 2022.
•Total nonperforming LHFI to total LHFI was 0.14% at December 31, 2022, compared to 0.20% at September 30, 2022, and 0.48% at December 31, 2021. The ALCL to nonperforming LHFI was 876.87% at December 31, 2022, compared to 594.11% and 259.35% at the linked quarter and prior year quarter ends, respectively.
1
(1) Fully tax equivalent NIM, adjusted, is a non-GAAP financial measure and is calculated by removing the net purchase accounting accretion from the net interest income.
(2) The ALCL to total LHFI, adjusted, is calculated at December 31, 2022, and 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 Payroll Protection Program ("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 December 31, 2022
Net Interest Income and Net Interest Margin
Net interest income for the quarter ended December 31, 2022, was $84.7 million, an increase of $6.2 million, or 7.9%, compared to the linked quarter. Purchase accounting accretion income on acquired loans was $1.7 million during the current quarter compared to $1.2 million during the linked quarter, with remaining purchase accounting net loan discounts totaling $2.2 million at December 31, 2022. Net purchase accounting accretion income on deposits and subordinated indebtedness totaled $244,000, bringing the total impact from purchase accounting treatment on net interest income to $1.9 million for the three months ended December 31, 2022, compared to $1.4 million for the linked quarter.
Excluding the net purchase accounting accretion, the $5.7 million increase in net interest income was mainly due to increases of $13.6 million and $6.0 million in interest income driven by an increase in market interest rates on interest-earning assets and increases in average interest-earning asset balances, respectively, during the current quarter. These increases were partially offset by a $13.1 million increase in interest expense due primarily to increased market interest rates paid on interest-bearing liabilities.
The table below presents the estimated loan and deposit accretion and subordinated indebtedness amortization schedule resulting from merger purchase accounting adjustments for the periods shown.
| Loan Accretion Income | Deposit Accretion Income | Subordinated Indebtedness Amortization Expense | Total Impact to Net Interest Income | ||||||||||||||||||||
| 3Q2022 | $ | 1,187 | $ | 238 | $ | (10) | $ | 1,415 | |||||||||||||||
| 4Q2022 | 1,653 | 259 | (15) | 1,897 | |||||||||||||||||||
| Total actual realized net purchase accounting accretion | $ | 2,840 | $ | 497 | $ | (25) | $ | 3,312 | |||||||||||||||
| For the years ending (estimated): | |||||||||||||||||||||||
| 2023 | $ | 2,023 | $ | 209 | $ | (62) | $ | 2,170 | |||||||||||||||
| Thereafter | 223 | 23 | (706) | (460) | |||||||||||||||||||
Total remaining net purchase accounting accretion at December 31, 2022 | $ | 2,246 | $ | 232 | $ | (768) | $ | 1,710 | |||||||||||||||
The increase in net interest income for the three-month period ended December 31, 2022, was the result of a $20.1 million increase in total interest income, partially offset by a $13.8 million increase in interest expense. Increases in interest rates drove a $13.9 million increase in total interest income, while increases in average interest-earning asset balances drove a $6.2 million increase in total interest income. The increase in interest expense was primarily due to rate increases, which drove an $11.6 million increase in interest expense on deposits and a $1.4 million increase in interest expense on FHLB advances and other borrowings.
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 six more times during 2022, with the most recent and current Federal Funds target rate range being set at December 14, 2022, to 4.25% to 4.50%. At December 31, 2022, the Federal Funds target rate range had increased 425 basis points on a year-to-date basis. In order to remain competitive as market interest rates increase, interest rates paid on deposits must also increase. Increases in interest rates contributed $11.8 million to the total increase in interest income earned on total LHFI, while interest rates increased our total deposit interest expense by $11.6 million during the current quarter compared to the linked quarter.
2
The yield on LHFI was 5.63% and 4.94% for the three months ended December 31, 2022, and September 30, 2022, respectively, and average LHFI balances increased to $6.97 billion for the quarter ended December 31, 2022, compared to $6.39 billion for the linked quarter. The yield on LHFI, excluding the purchase accounting accretion, was 5.53% for the quarter ended December 31, 2022, compared to 4.86% for the linked quarter. The yield on total investment securities was 2.34% for the three months ended December 31, 2022, compared to 2.12% for the linked quarter. Additionally, the rate on interest-bearing deposits increased to 1.54% for the quarter ended December 31, 2022, compared to 0.64% for the quarter ended September 30, 2022, and average interest-bearing deposit balances increased to $5.12 billion from $4.83 billion for the linked quarter. Average balances of subordinated indebtedness also increased to $201.7 million for the quarter ended December 31, 2022, compared to $186.8 million for the linked quarter due to subordinated indebtedness assumed in the BTH merger in August 2022, and reflected a rate of 4.95% for the current quarter compared to 4.81% for the linked quarter.
The fully tax-equivalent NIM was 3.81% for the quarter ended December 31, 2022, a 13 and a 75 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 December 31, 2022, was 4.96%, an increase of 73 and 161 basis points compared to the linked quarter and the prior year quarter, respectively. The rate paid on total deposits for the quarter ended December 31, 2022, was 1.02%, representing a 61 and an 83 basis point increase compared to the linked quarter and the prior year quarter. The rate paid on subordinated indebtedness also increased to 4.95%, reflecting a 14 and a 33 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 eight basis points and seven basis points, respectively, during the current quarter and the linked quarter.
Credit Quality
The table below includes key credit quality information:
| At and For the Three Months Ended | $ Change | % Change | |||||||||||||||||||||||||||
| (Dollars in thousands, unaudited) | December 31, 2022 | September 30, 2022 | December 31, 2021 | Linked Quarter | Linked Quarter | ||||||||||||||||||||||||
| Past due LHFI | $ | 10,932 | $ | 10,866 | $ | 25,615 | $ | 66 | 0.6 | % | |||||||||||||||||||
| ALCL | 87,161 | 83,359 | 64,586 | 3,802 | 4.6 | ||||||||||||||||||||||||
| Classified loans | 74,203 | 69,781 | 69,372 | 4,422 | 6.3 | ||||||||||||||||||||||||
| Total nonperforming LHFI | 9,940 | 14,031 | 24,903 | (4,091) | (29.2) | ||||||||||||||||||||||||
| Provision for credit losses | 4,624 | 16,942 | (2,647) | (12,318) | (72.7) | ||||||||||||||||||||||||
| Net charge-offs | 180 | 1,078 | 2,693 | (898) | (83.3) | ||||||||||||||||||||||||
Credit quality ratios(1): | |||||||||||||||||||||||||||||
| ALCL to nonperforming LHFI | 876.87 | % | 594.11 | % | 259.35 | % | N/A | 28276 bp | |||||||||||||||||||||
| ALCL to total LHFI | 1.23 | 1.21 | 1.23 | N/A | 2 bp | ||||||||||||||||||||||||
ALCL to total LHFI, adjusted(2) | 1.28 | 1.29 | 1.43 | N/A | -1 bp | ||||||||||||||||||||||||
| Nonperforming LHFI to LHFI | 0.14 | 0.20 | 0.48 | N/A | -6 bp | ||||||||||||||||||||||||
| Net charge-offs to total average LHFI (annualized) | 0.01 | 0.07 | 0.21 | N/A | -6 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 December 31, 2022, and 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 $4.6 million during the quarter ended December 31, 2022, compared to a credit loss provision of $16.9 million recorded during the linked quarter. The decrease is primarily due to a $14.9 million Day 1 CECL loan provision recorded during the quarter ended September 30, 2022, for the merger with BTH.
3
Overall, most credit metrics improved at December 31, 2022, when compared to the linked quarter. The ALCL to nonperforming LHFI increased to 876.9% at December 31, 2022, compared to 594.1% at September 30, 2022, driven by the $3.8 million increase in the Company’s ALCL for the quarter and a $4.1 million decrease in nonperforming LHFI. Quarterly net charge-offs decreased to $180,000 from $1.1 million for the linked quarter, primarily due to a $1.8 million recovery on a commercial and industrial loan during the current quarter. Net charge-offs to total average LHFI (annualized) decreased to 0.01% for the quarter ending December 31, 2022, compared to 0.07% for the quarter ending September 30, 2022. Classified loans increased $4.4 million at December 31, 2022, compared to the linked quarter, and represented 1.05% of LHFI, at December 31, 2022, compared to 1.01% at September 30, 2022. The ALCL to total LHFI increased to 1.23% at December 31, 2022, compared to 1.21% at September 30, 2022.
Noninterest Income
Noninterest income for the quarter ended December 31, 2022, was $13.4 million, a decrease of $294,000, or 2.1%, from the linked quarter. The decrease from the linked quarter was primarily driven by decreases of $1.7 million and $612,000 on the gain on sales of securities, net and insurance commission and fee income, respectively, offset by an increase of $2.1 million in mortgage banking revenue.
The gain on sales of securities, net, decreased $1.7 million when compared to the quarter ended September 30, 2022, due to the sale of primarily legacy BTH securities during the quarter ended September 30, 2022, as a result of investment strategy and liquidity management, while no sale transactions occurred during the current quarter. The $612,000 decrease in insurance commission and fee income was caused by the seasonality of policy renewals.
The $2.1 million increase in mortgage banking revenue compared to the linked quarter was primarily due to a $2.0 million impairment of the GNMA MSR portfolio recognized during the quarter ended September 30, 2022, without a similar sale occurring during the current quarter. During the quarter ended December 31, 2022, the Company entered into a contract to transfer the servicing of these GNMA loans to a third party, the unpaid principal balance of these loans were approximately $453.3 million at December 31, 2022. The sale of the MSR portfolio on these loans is expected to settle in the first quarter of 2023, with no significant gain or loss expected at settlement.
Noninterest Expense
Noninterest expense for the quarter ended December 31, 2022, was $57.3 million, an increase of $1.0 million compared to the linked quarter. The increase from the linked quarter was primarily driven by increases of $1.5 million, $682,000, $464,000, $365,000 and $309,000 in salaries and employee benefits, intangible asset amortization, occupancy and equipment, net, regulatory assessments and advertising and marketing expenses, respectively. The total increase was partially offset by decreases of $2.4 million and $432,000 in merger-related expense and other noninterest expense, respectively.
The $1.5 million increase in salaries and employee benefits expense was primarily driven by a $1.0 million increase related to an additional month of BTH expenses. The remaining increase was driven by an additional incentive accrual recorded during the current quarter due to exceeding performance metrics during the period.
The $682,000 increase in intangible asset amortization expense was due to the additional month of expense in the current quarter due to the timing of closing of the BTH merger.
The $464,000 increase in occupancy and equipment, net expense was primarily driven by a $357,000 increase in contractual rent expense due to the timing of the closing of the merger and one new banking center location.
The $365,000 increase in regulatory assessments expense was due to a change in the assessment rate during the quarter ended September 30, 2022, as well as growth in average assets primarily due to the BTH merger.
The $309,000 increase in advertising and marketing expenses was due to expenses associated with marketing campaigns.
Merger-related expenses declined $2.4 million compared to the quarter ended September 30, 2022, primarily due to $2.8 million in professional services fees incurred during the quarter ended September 30, 2022.
The $432,000 decrease in other noninterest expense was mainly due to system integration savings realized in conjunction with the BTH merger.
4
Income Taxes
The effective tax rate was 18.8% during the quarter ended December 31, 2022, compared to 14.8% during the linked quarter and 14.6% during the quarter ended December 31, 2021. The effective tax rate for the quarter ended September 30, 2022, was lower due to tax-exempt items and credits having a larger than proportional effect on the Company's effective income tax rate as income before taxes decreases. Merger expenses incurred during the quarter ended September 30, 2022, caused the income before income taxes to be lower compared to the current quarter and the quarter ended December 31, 2021.
The effective tax rate for the quarter ended December 31, 2021, was lower compared to the effective tax rate for the quarter ended December 31, 2022, primarily due to the tax impact of the exercise of stock options and vesting of stock awards during the quarter ended December 31, 2021.
Financial Condition
Loans
•Total LHFI at December 31, 2022, were $7.09 billion, an increase of $207.3 million, or 3.0%, from $6.88 billion at September 30, 2022, and an increase of $1.86 billion, or 35.5%, compared to December 31, 2021.
•Total real estate loans were $4.73 billion at December 31, 2022, an increase of $301.0 million, or 6.8%, from the linked quarter. Mortgage warehouse lines of credit totaled $284.9 million at December 31, 2022, a decrease of $175.7 million, or 38.1%, compared to the linked quarter.
•The largest contributor to the increase in LHFI was commercial real estate which increased $130.3 million, or 6.0%, compared to the linked quarter.
Securities
•Total securities at December 31, 2022, were $1.66 billion, a decrease of $30.7 million, or 1.8%, compared to the linked quarter and an increase of $124.1 million, or 8.1%, compared to December 31, 2021.
•The decrease was due to maturities, scheduled principal payments, and calls; there were no security sales during the current quarter.
•Accumulated other comprehensive loss, net of taxes, associated with the AFS portfolio improved by $15.4 million during the quarter ended December 31, 2022.
•The total securities portfolio effective duration was 5.1 years as of December 31, 2022, compared to 5.2 years as of September 30, 2022.
Deposits
•Total deposits at December 31, 2022, were $7.78 billion, a decrease of $1.6 million compared to the linked quarter, and represented an increase of $1.21 billion, or 18.3%, from December 31, 2021.
•For the quarters ended December 31, 2022, and December 31, 2021, average noninterest-bearing deposits as a percentage of total average deposits were 33.6%, compared to 34.9% for the quarter ended September 30, 2022.
Borrowings
•FHLB advances and other borrowings at December 31, 2022, were $639.2 million, an increase of $188.8 million, or 41.9%, compared to the linked quarter and represented an increase of $329.4 million, or 106.3%, from December 31, 2021.
•Average FHLB advances were $511.9 million for the quarter ended December 31, 2022, a decrease of $12.0 million from $523.9 million for the quarter ended September 30, 2022.
Stockholders’ Equity
•Stockholders’ equity was $949.9 million at December 31, 2022, an increase of $42.9 million, or 4.7%, compared to $907.0 million at September 30, 2022, and an increase of $219.7 million, compared to $730.2 million, or 30.1%, at December 31, 2021.
•The increase in stockholders’ equity from the linked quarter is primarily due to net income of $29.5 million and an increase in other comprehensive income, net of tax, of $15.4 million retained during the current quarter.
•The increase from December 31, 2021, is primarily associated with the BTH merger, which drove a $306.3 million increase in stockholders' equity and net income retained during the year ended December 31, 2022, partially offset by other comprehensive loss, net of tax and dividends declared during the year.
5
Conference Call
Origin will hold a conference call to discuss its fourth quarter and 2022 full year results on Thursday, January 26, 2023, at 8:00 a.m. Central Time (9:00 a.m. Eastern Time). To participate in the live conference call, please dial +1 (929) 272-1574 (U.S. Local / International); +1 (800) 528-1066 (U.S. Toll Free), enter Conference ID: 83933 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://dealroadshow.com/e/ORIGINQ422.
If you are unable to participate during the live webcast, the webcast will be archived on the Investor Relations section of Origin’s website at www.origin.bank, under Investor Relations, News & Events, Events & Presentations.
About Origin
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.
Non-GAAP Financial Measures
Origin reports its results in accordance with United States generally accepted accounting principles ("GAAP"). However, management believes that certain supplemental non-GAAP financial measures used in managing its business may provide meaningful information to investors about underlying trends in its business. 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 release: adjusted net income, adjusted PTPP earnings, adjusted diluted EPS, NIM- FTE, adjusted, adjusted ROAA, adjusted PTPP ROAA, adjusted ROAE, adjusted PTPP ROAE, tangible book value per common share, adjusted tangible book value per common share, ROATCE and adjusted ROATCE and core efficiency ratio.
Please see the last few pages of this release for reconciliations of non-GAAP measures to the most directly comparable financial measures calculated in accordance with GAAP.
6
Forward-Looking Statements
This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include information regarding Origin’s future financial performance, business and growth strategy, projected plans and objectives, and 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: the impact of current and future economic conditions generally and in the financial services industry, nationally and within Origin’s primary market areas, including the effects of declines in the real estate market, high unemployment rates, inflationary pressures, elevated interest rates and slowdowns in economic growth, as well as the financial stress on borrowers and changes to customer and client behavior as a result of the foregoing, 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, competition, and the cost of doing business); the effectiveness of Origin’s risk management framework and quantitative models; Origin’s inability to receive dividends from Origin Bank and to service debt, pay dividends to Origin’s common stockholders, repurchase Origin’s shares of common stock and satisfy obligations as they become due; 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, as well as from fintech companies; 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; a deterioration of the credit rating for U.S. long-term sovereign debt, actions that the U.S. government may take to avoid exceeding the debt ceiling, or uncertainties surrounding the debt ceiling and the federal budget; 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 and the impact of any replacement alternatives such as the Secured Overnight Financing Rate 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
7
10-K filed with the Securities and Exchange Commission and any updates to those sections set forth in Origin’s subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. If one or more events related to these or other risks or uncertainties materialize, or if Origin’s underlying assumptions prove to be incorrect, actual results may differ materially from what Origin anticipates. Accordingly, you should not place undue reliance on any forward-looking statements. Any forward-looking 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.
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 | |||||||||||||||||||||||||||||
| December 31, 2022 | September 30, 2022 | June 30, 2022 | March 31, 2022 | December 31, 2021 | |||||||||||||||||||||||||
| Income statement and share amounts | (Dollars in thousands, except per share amounts, unaudited) | ||||||||||||||||||||||||||||
Net interest income | $ | 84,749 | $ | 78,523 | $ | 59,504 | $ | 52,502 | $ | 54,180 | |||||||||||||||||||
| Provision for credit losses | 4,624 | 16,942 | 3,452 | (327) | (2,647) | ||||||||||||||||||||||||
Noninterest income | 13,429 | 13,723 | 14,216 | 15,906 | 16,701 | ||||||||||||||||||||||||
| Noninterest expense | 57,254 | 56,241 | 44,150 | 42,774 | 40,346 | ||||||||||||||||||||||||
Income before income tax expense | 36,300 | 19,063 | 26,118 | 25,961 | 33,182 | ||||||||||||||||||||||||
| Income tax expense | 6,822 | 2,820 | 4,807 | 5,278 | 4,860 | ||||||||||||||||||||||||
Net income | $ | 29,478 | $ | 16,243 | $ | 21,311 | $ | 20,683 | $ | 28,322 | |||||||||||||||||||
Adjusted net income(1) | $ | 30,409 | $ | 31,087 | $ | 21,949 | $ | 21,134 | $ | 24,144 | |||||||||||||||||||
Adjusted PTPP earnings ("Adjusted PTPP")(1) | 42,103 | 39,905 | 30,377 | 26,205 | 25,258 | ||||||||||||||||||||||||
Basic earnings per common share | 0.96 | 0.57 | 0.90 | 0.87 | 1.21 | ||||||||||||||||||||||||
Diluted earnings per common share | 0.95 | 0.57 | 0.90 | 0.87 | 1.20 | ||||||||||||||||||||||||
Adjusted diluted earnings per common share(1) | 0.99 | 1.09 | 0.92 | 0.89 | 1.02 | ||||||||||||||||||||||||
| Dividends declared per common share | 0.15 | 0.15 | 0.15 | 0.13 | 0.13 | ||||||||||||||||||||||||
Weighted average common shares outstanding - basic | 30,674,389 | 28,298,984 | 23,740,611 | 23,700,550 | 23,484,056 | ||||||||||||||||||||||||
Weighted average common shares outstanding - diluted | 30,867,511 | 28,481,619 | 23,788,164 | 23,770,791 | 23,609,874 | ||||||||||||||||||||||||
Balance sheet data | |||||||||||||||||||||||||||||
Total LHFI | $ | 7,090,022 | $ | 6,882,681 | $ | 5,528,093 | $ | 5,194,406 | $ | 5,231,331 | |||||||||||||||||||
Total assets | 9,686,067 | 9,462,639 | 8,111,524 | 8,112,295 | 7,861,285 | ||||||||||||||||||||||||
| Total deposits | 7,775,702 | 7,777,327 | 6,303,158 | 6,767,179 | 6,570,693 | ||||||||||||||||||||||||
| Total stockholders’ equity | 949,943 | 907,024 | 646,373 | 676,865 | 730,211 | ||||||||||||||||||||||||
| Performance metrics and capital ratios | |||||||||||||||||||||||||||||
| Yield on LHFI | 5.63 | % | 4.94 | % | 4.26 | % | 4.08 | % | 4.11 | % | |||||||||||||||||||
| Yield on interest-earnings assets | 4.96 | 4.23 | 3.53 | 3.13 | 3.35 | ||||||||||||||||||||||||
| Cost of interest-bearing deposits | 1.54 | 0.64 | 0.29 | 0.26 | 0.28 | ||||||||||||||||||||||||
| Cost of total deposits | 1.02 | 0.41 | 0.19 | 0.17 | 0.19 | ||||||||||||||||||||||||
| NIM - fully tax equivalent ("FTE") | 3.81 | 3.68 | 3.23 | 2.86 | 3.06 | ||||||||||||||||||||||||
NIM - FTE, adjusted(2) | 3.73 | 3.61 | 3.20 | 2.76 | 2.92 | ||||||||||||||||||||||||
| Return on average assets (annualized) ("ROAA") | 1.23 | 0.70 | 1.08 | 1.04 | 1.49 | ||||||||||||||||||||||||
Adjusted ROAA (annualized)(1) | 1.27 | 1.34 | 1.11 | 1.07 | 1.27 | ||||||||||||||||||||||||
Adjusted PTPP ROAA (annualized)(1) | 1.75 | 1.72 | 1.53 | 1.32 | 1.33 | ||||||||||||||||||||||||
| Return on average stockholders’ equity (annualized) ("ROAE") | 12.80 | 6.86 | 12.81 | 11.61 | 15.70 | ||||||||||||||||||||||||
Adjusted ROAE (annualized)(1) | 13.20 | 13.14 | 13.19 | 11.86 | 13.39 | ||||||||||||||||||||||||
Adjusted PTPP ROAE (annualized)(1) | 18.28 | 16.86 | 18.26 | 14.71 | 14.00 | ||||||||||||||||||||||||
Book value per common share(3) | $ | 30.90 | $ | 29.58 | $ | 27.15 | $ | 28.50 | $ | 30.75 | |||||||||||||||||||
Tangible book value per common share (1)(3) | 25.09 | 23.41 | 25.05 | 26.37 | 28.59 | ||||||||||||||||||||||||
Adjusted tangible book value per common share(1) | 30.29 | 29.13 | 29.92 | 29.15 | 28.35 | ||||||||||||||||||||||||
Return on average tangible common equity ("ROATCE")(1) | 16.00 | % | 8.03 | % | 13.86 | % | 12.49 | % | 16.39 | % | |||||||||||||||||||
Adjusted return on average tangible common equity ("adjusted ROATCE")(1) | 16.50 | 15.38 | 14.27 | 12.77 | 13.98 | ||||||||||||||||||||||||
Efficiency ratio(4) | 58.32 | 60.97 | 59.89 | 62.53 | 56.92 | ||||||||||||||||||||||||
Core efficiency ratio(1) | 53.06 | 52.16 | 54.10 | 58.93 | 57.27 | ||||||||||||||||||||||||
9
Origin Bancorp, Inc.
Selected Quarterly Financial Data
| Three Months Ended | |||||||||||||||||||||||||||||
| December 31, 2022 | September 30, 2022 | June 30, 2022 | March 31, 2022 | December 31, 2021 | |||||||||||||||||||||||||
| (Dollars in thousands, except per share amounts, unaudited) | |||||||||||||||||||||||||||||
Common equity tier 1 to risk-weighted assets(5) | 10.93 | % | 10.51 | % | 10.81 | % | 11.20 | % | 11.20 | % | |||||||||||||||||||
Tier 1 capital to risk-weighted assets(5) | 11.12 | 10.70 | 10.95 | 11.35 | 11.36 | ||||||||||||||||||||||||
Total capital to risk-weighted assets(5) | 14.23 | 13.79 | 14.09 | 14.64 | 14.77 | ||||||||||||||||||||||||
Tier 1 leverage ratio(5) | 9.66 | 9.63 | 9.09 | 8.84 | 9.20 | ||||||||||||||||||||||||
__________________________
(1)Adjusted net income, adjusted PTPP earnings, adjusted diluted earnings per common share, adjusted ROAA, adjusted PTPP ROAA, adjusted ROAE, adjusted PTPP ROAE, tangible book value per common share, adjusted tangible book value per common share, ROATCE, adjusted ROATCE 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 quarters ended December 31, 2022, and September 30, 2022, by removing the net purchase accounting 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 year ended December 31, 2022, negatively impacted total stockholders' equity, tangible common equity, book value and tangible book value per common share primarily due to the steepening of the short end of the yield curve that occurred during the first three quarters of 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)December 31, 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
| Year Ended December 31, | |||||||||||
| (Dollars in thousands, except per share amounts) | 2022 | 2021 | |||||||||
| Income statement and share amounts | (Unaudited) | ||||||||||
Net interest income | $ | 275,278 | $ | 216,252 | |||||||
| Provision for credit losses | 24,691 | (10,765) | |||||||||
Noninterest income | 57,274 | 62,193 | |||||||||
| Noninterest expense | 200,419 | 156,779 | |||||||||
Income before income tax expense | 107,442 | 132,431 | |||||||||
Income tax expense | 19,727 | 23,885 | |||||||||
Net income | $ | 87,715 | $ | 108,546 | |||||||
Adjusted net income(1) | $ | 104,579 | $ | 103,047 | |||||||
Adjusted PTPP earnings(1) | 138,590 | 114,705 | |||||||||
Basic earnings per common share(2) | 3.29 | 4.63 | |||||||||
Diluted earnings per common share(2) | 3.28 | 4.60 | |||||||||
Adjusted diluted earnings per common share(1) | 3.91 | 4.36 | |||||||||
| Dividends declared per common share | 0.58 | 0.49 | |||||||||
Weighted average common shares outstanding - basic | 26,627,476 | 23,431,504 | |||||||||
Weighted average common shares outstanding - diluted | 26,760,592 | 23,608,586 | |||||||||
| Performance metrics | |||||||||||
| Yield on LHFI | 4.81 | % | 4.05 | % | |||||||
| Yield on interest-earning assets | 4.02 | 3.42 | |||||||||
| Cost of interest-bearing deposits | 0.72 | 0.32 | |||||||||
| Cost of total deposits | 0.47 | 0.22 | |||||||||
| NIM, FTE | 3.42 | 3.10 | |||||||||
NIM - FTE, adjusted(3) | 3.38 | 3.01 | |||||||||
| ROAA | 1.01 | 1.45 | |||||||||
Adjusted ROAA(1) | 1.20 | 1.38 | |||||||||
Adjusted PTPP ROAA(1) | 1.60 | 1.54 | |||||||||
| ROAE | 10.81 | 15.79 | |||||||||
Adjusted ROAE(1) | 12.89 | 14.99 | |||||||||
Adjusted PTPP ROAE(1) | 17.08 | 16.68 | |||||||||
ROATCE(1) | 12.43 | 16.51 | |||||||||
Adjusted ROATCE(1) | 14.82 | 15.67 | |||||||||
Efficiency ratio(4) | 60.27 | 56.31 | |||||||||
Core efficiency ratio(1) | 54.16 | 52.87 | |||||||||
____________________________
(1)Adjusted net income, adjusted PTPP earnings, adjusted diluted earnings per common share, adjusted ROAA, adjusted PTPP ROAA, adjusted ROAE, adjusted PTPP ROAE, ROATCE, adjusted ROATCE 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 year ended December 31, 2022, by removing the net purchase accounting accretion from the net interest income. For the year ended December 31, 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 | |||||||||||||||||||||||||||||
| December 31, 2022 | September 30, 2022 | June 30, 2022 | March 31, 2022 | December 31, 2021 | |||||||||||||||||||||||||
| Interest and dividend income | (Dollars in thousands, except per share amounts, unaudited) | ||||||||||||||||||||||||||||
| Interest and fees on loans | $ | 99,178 | $ | 79,803 | $ | 55,986 | $ | 51,183 | $ | 53,260 | |||||||||||||||||||
| Investment securities-taxable | 7,765 | 7,801 | 7,116 | 5,113 | 4,691 | ||||||||||||||||||||||||
| Investment securities-nontaxable | 2,128 | 2,151 | 1,493 | 1,400 | 1,493 | ||||||||||||||||||||||||
| Interest and dividend income on assets held in other financial institutions | 2,225 | 1,482 | 1,193 | 587 | 686 | ||||||||||||||||||||||||
| Total interest and dividend income | 111,296 | 91,237 | 65,788 | 58,283 | 60,130 | ||||||||||||||||||||||||
| Interest expense | |||||||||||||||||||||||||||||
| Interest-bearing deposits | 19,820 | 7,734 | 3,069 | 2,886 | 2,957 | ||||||||||||||||||||||||
| FHLB advances and other borrowings | 4,208 | 2,717 | 1,392 | 1,094 | 1,161 | ||||||||||||||||||||||||
| Subordinated indebtedness | 2,519 | 2,263 | 1,823 | 1,801 | 1,832 | ||||||||||||||||||||||||
| Total interest expense | 26,547 | 12,714 | 6,284 | 5,781 | 5,950 | ||||||||||||||||||||||||
Net interest income | 84,749 | 78,523 | 59,504 | 52,502 | 54,180 | ||||||||||||||||||||||||
| Provision for credit losses | 4,624 | 16,942 | 3,452 | (327) | (2,647) | ||||||||||||||||||||||||
| Net interest income after provision for credit losses | 80,125 | 61,581 | 56,052 | 52,829 | 56,827 | ||||||||||||||||||||||||
| Noninterest income | |||||||||||||||||||||||||||||
| Service charges and fees | 4,663 | 4,734 | 4,274 | 3,998 | 3,994 | ||||||||||||||||||||||||
| Insurance commission and fee income | 5,054 | 5,666 | 5,693 | 6,456 | 2,826 | ||||||||||||||||||||||||
| Mortgage banking (loss) revenue | 1,201 | (929) | 2,354 | 4,096 | 2,857 | ||||||||||||||||||||||||
| Other fee income | 1,132 | 1,162 | 638 | 598 | 702 | ||||||||||||||||||||||||
| Gain on sales of securities, net | — | 1,664 | — | — | 75 | ||||||||||||||||||||||||
| Gain (loss) on sales and disposals of other assets, net | 34 | 70 | (279) | — | (97) | ||||||||||||||||||||||||
| Limited partnership investment income (loss) | (230) | 112 | 282 | (363) | 50 | ||||||||||||||||||||||||
| Swap fee income (loss) | 292 | 25 | 1 | 139 | (285) | ||||||||||||||||||||||||
| Other income | 1,283 | 1,219 | 1,253 | 982 | 6,579 | ||||||||||||||||||||||||
| Total noninterest income | 13,429 | 13,723 | 14,216 | 15,906 | 16,701 | ||||||||||||||||||||||||
| Noninterest expense | |||||||||||||||||||||||||||||
| Salaries and employee benefits | 33,339 | 31,834 | 27,310 | 26,488 | 24,718 | ||||||||||||||||||||||||
| Occupancy and equipment, net | 5,863 | 5,399 | 4,514 | 4,427 | 4,306 | ||||||||||||||||||||||||
| Data processing | 2,868 | 2,689 | 2,413 | 2,486 | 2,302 | ||||||||||||||||||||||||
| Office and operations | 2,277 | 2,121 | 2,162 | 1,560 | 1,849 | ||||||||||||||||||||||||
| Loan related expenses | 1,676 | 1,599 | 1,517 | 1,305 | 1,880 | ||||||||||||||||||||||||
| Professional services | 1,145 | 1,188 | 420 | 1,060 | 923 | ||||||||||||||||||||||||
| Electronic banking | 1,058 | 1,087 | 896 | 917 | 616 | ||||||||||||||||||||||||
| Advertising and marketing | 1,505 | 1,196 | 859 | 871 | 1,147 | ||||||||||||||||||||||||
| Franchise tax expense | 1,017 | 957 | 838 | 770 | 692 | ||||||||||||||||||||||||
| Regulatory assessments | 1,242 | 877 | 802 | 626 | 526 | ||||||||||||||||||||||||
| Intangible asset amortization | 2,554 | 1,872 | 525 | 537 | 194 | ||||||||||||||||||||||||
| Communications | 434 | 279 | 252 | 281 | 286 | ||||||||||||||||||||||||
| Merger-related expense | 1,179 | 3,614 | 807 | 571 | — | ||||||||||||||||||||||||
| Other expenses | 1,097 | 1,529 | 835 | 875 | 907 | ||||||||||||||||||||||||
| Total noninterest expense | 57,254 | 56,241 | 44,150 | 42,774 | 40,346 | ||||||||||||||||||||||||
| Income before income tax expense | 36,300 | 19,063 | 26,118 | 25,961 | 33,182 | ||||||||||||||||||||||||
| Income tax expense | 6,822 | 2,820 | 4,807 | 5,278 | 4,860 | ||||||||||||||||||||||||
| Net income | $ | 29,478 | $ | 16,243 | $ | 21,311 | $ | 20,683 | $ | 28,322 | |||||||||||||||||||
| Basic earnings per common share | $ | 0.96 | $ | 0.57 | $ | 0.90 | $ | 0.87 | $ | 1.21 | |||||||||||||||||||
| Diluted earnings per common share | 0.95 | 0.57 | 0.90 | 0.87 | 1.20 | ||||||||||||||||||||||||
12
Origin Bancorp, Inc.
Consolidated Balance Sheets
| (Dollars in thousands) | December 31, 2022 | September 30, 2022 | June 30, 2022 | March 31, 2022 | December 31, 2021 | ||||||||||||||||||||||||
| Assets | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||||||||||||||||||||||
| Cash and due from banks | $ | 150,180 | $ | 118,505 | $ | 123,499 | $ | 129,825 | $ | 133,334 | |||||||||||||||||||
| Interest-bearing deposits in banks | 208,792 | 181,965 | 200,421 | 454,619 | 572,284 | ||||||||||||||||||||||||
| Total cash and cash equivalents | 358,972 | 300,470 | 323,920 | 584,444 | 705,618 | ||||||||||||||||||||||||
| Securities: | |||||||||||||||||||||||||||||
| AFS | 1,641,484 | 1,672,170 | 1,804,370 | 1,905,687 | 1,504,728 | ||||||||||||||||||||||||
| Held to maturity, net of allowance for credit losses | 11,275 | 11,285 | 4,288 | 4,831 | 22,767 | ||||||||||||||||||||||||
| Securities carried at fair value through income | 6,368 | 6,347 | 6,630 | 7,058 | 7,497 | ||||||||||||||||||||||||
| Total securities | 1,659,127 | 1,689,802 | 1,815,288 | 1,917,576 | 1,534,992 | ||||||||||||||||||||||||
| Non-marketable equity securities held in other financial institutions | 67,378 | 53,899 | 76,822 | 45,242 | 45,192 | ||||||||||||||||||||||||
| Loans held for sale | 49,957 | 59,714 | 62,493 | 80,295 | 80,387 | ||||||||||||||||||||||||
| Loans | 7,090,022 | 6,882,681 | 5,528,093 | 5,194,406 | 5,231,331 | ||||||||||||||||||||||||
| Less: ALCL | 87,161 | 83,359 | 63,123 | 62,173 | 64,586 | ||||||||||||||||||||||||
| Loans, net of ALCL | 7,002,861 | 6,799,322 | 5,464,970 | 5,132,233 | 5,166,745 | ||||||||||||||||||||||||
| Premises and equipment, net | 100,201 | 99,291 | 81,950 | 80,421 | 80,691 | ||||||||||||||||||||||||
| Mortgage servicing rights | 20,824 | 21,654 | 22,127 | 21,187 | 16,220 | ||||||||||||||||||||||||
| Cash surrender value of bank-owned life insurance | 39,040 | 38,885 | 38,742 | 38,547 | 38,352 | ||||||||||||||||||||||||
| Goodwill | 128,679 | 136,793 | 34,153 | 34,153 | 34,368 | ||||||||||||||||||||||||
| Other intangible assets, net | 49,829 | 52,384 | 15,900 | 16,425 | 16,962 | ||||||||||||||||||||||||
| Accrued interest receivable and other assets | 209,199 | 210,425 | 175,159 | 161,772 | 141,758 | ||||||||||||||||||||||||
| Total assets | $ | 9,686,067 | $ | 9,462,639 | $ | 8,111,524 | $ | 8,112,295 | $ | 7,861,285 | |||||||||||||||||||
| Liabilities and Stockholders’ Equity | |||||||||||||||||||||||||||||
| Noninterest-bearing deposits | $ | 2,482,475 | $ | 2,667,489 | $ | 2,214,919 | $ | 2,295,682 | $ | 2,163,507 | |||||||||||||||||||
| Interest-bearing deposits | 4,505,940 | 4,361,423 | 3,598,417 | 3,947,714 | 3,864,058 | ||||||||||||||||||||||||
| Time deposits | 787,287 | 748,415 | 489,822 | 523,783 | 543,128 | ||||||||||||||||||||||||
| Total deposits | 7,775,702 | 7,777,327 | 6,303,158 | 6,767,179 | 6,570,693 | ||||||||||||||||||||||||
| FHLB advances and other borrowings | 639,230 | 450,456 | 894,581 | 305,560 | 309,801 | ||||||||||||||||||||||||
| Subordinated indebtedness | 201,765 | 201,687 | 157,540 | 157,478 | 157,417 | ||||||||||||||||||||||||
| Accrued expenses and other liabilities | 119,427 | 126,145 | 109,872 | 205,213 | 93,163 | ||||||||||||||||||||||||
| Total liabilities | 8,736,124 | 8,555,615 | 7,465,151 | 7,435,430 | 7,131,074 | ||||||||||||||||||||||||
| Stockholders’ equity: | |||||||||||||||||||||||||||||
Common stock | 153,733 | 153,309 | 119,038 | 118,744 | 118,733 | ||||||||||||||||||||||||
| Additional paid-in capital | 520,669 | 518,376 | 244,368 | 242,789 | 242,114 | ||||||||||||||||||||||||
| Retained earnings | 435,416 | 410,572 | 398,946 | 381,222 | 363,635 | ||||||||||||||||||||||||
| Accumulated other comprehensive (loss) income | (159,875) | (175,233) | (115,979) | (65,890) | 5,729 | ||||||||||||||||||||||||
| Total stockholders’ equity | 949,943 | 907,024 | 646,373 | 676,865 | 730,211 | ||||||||||||||||||||||||
| Total liabilities and stockholders’ equity | $ | 9,686,067 | $ | 9,462,639 | $ | 8,111,524 | $ | 8,112,295 | $ | 7,861,285 | |||||||||||||||||||
13
Origin Bancorp, Inc.
Loan Data
| At and For the Three Months Ended | |||||||||||||||||||||||||||||
| December 31, 2022 | September 30, 2022 | June 30, 2022 | March 31, 2022 | December 31, 2021 | |||||||||||||||||||||||||
| LHFI | (Dollars in thousands, unaudited) | ||||||||||||||||||||||||||||
| Commercial real estate | $ | 2,304,678 | $ | 2,174,347 | $ | 1,909,054 | $ | 1,801,382 | $ | 1,693,512 | |||||||||||||||||||
| Construction/land/land development | 945,625 | 853,311 | 635,556 | 593,350 | 530,083 | ||||||||||||||||||||||||
| Residential real estate | 1,477,538 | 1,399,182 | 1,005,623 | 922,054 | 909,739 | ||||||||||||||||||||||||
| Total real estate loans | 4,727,841 | 4,426,840 | 3,550,233 | 3,316,786 | 3,133,334 | ||||||||||||||||||||||||
| Commercial and industrial | 2,051,161 | 1,967,037 | 1,430,239 | 1,358,597 | 1,454,235 | ||||||||||||||||||||||||
| Mortgage warehouse lines of credit | 284,867 | 460,573 | 531,888 | 503,249 | 627,078 | ||||||||||||||||||||||||
| Consumer | 26,153 | 28,231 | 15,733 | 15,774 | 16,684 | ||||||||||||||||||||||||
| Total LHFI | 7,090,022 | 6,882,681 | 5,528,093 | 5,194,406 | 5,231,331 | ||||||||||||||||||||||||
| Less: allowance for loan credit losses ("ALCL") | 87,161 | 83,359 | 63,123 | 62,173 | 64,586 | ||||||||||||||||||||||||
| LHFI, net | $ | 7,002,861 | $ | 6,799,322 | $ | 5,464,970 | $ | 5,132,233 | $ | 5,166,745 | |||||||||||||||||||
| Nonperforming assets | |||||||||||||||||||||||||||||
| Nonperforming LHFI | |||||||||||||||||||||||||||||
| Commercial real estate | $ | 526 | $ | 431 | $ | 224 | $ | 233 | $ | 512 | |||||||||||||||||||
| Construction/land/land development | 270 | 366 | 373 | 256 | 338 | ||||||||||||||||||||||||
| Residential real estate | 7,712 | 7,641 | 7,478 | 11,609 | 11,647 | ||||||||||||||||||||||||
| Commercial and industrial | 1,383 | 5,134 | 5,930 | 8,987 | 12,306 | ||||||||||||||||||||||||
| Mortgage warehouse lines of credit | — | 385 | — | — | — | ||||||||||||||||||||||||
| Consumer | 49 | 74 | 80 | 96 | 100 | ||||||||||||||||||||||||
| Total nonperforming LHFI | 9,940 | 14,031 | 14,085 | 21,181 | 24,903 | ||||||||||||||||||||||||
| Nonperforming loans held for sale | 3,933 | 2,698 | 2,461 | 2,698 | 1,754 | ||||||||||||||||||||||||
| Total nonperforming loans | 13,873 | 16,729 | 16,546 | 23,879 | 26,657 | ||||||||||||||||||||||||
| Repossessed assets | 806 | 1,781 | 2,009 | 1,703 | 1,860 | ||||||||||||||||||||||||
| Total nonperforming assets | $ | 14,679 | $ | 18,510 | $ | 18,555 | $ | 25,582 | $ | 28,517 | |||||||||||||||||||
| Classified assets | $ | 75,009 | $ | 71,562 | $ | 54,124 | $ | 72,082 | $ | 71,232 | |||||||||||||||||||
Past due LHFI(1) | 10,932 | 10,866 | 7,186 | 21,753 | 25,615 | ||||||||||||||||||||||||
| Allowance for loan credit losses | |||||||||||||||||||||||||||||
| Balance at beginning of period | $ | 83,359 | $ | 63,123 | $ | 62,173 | $ | 64,586 | $ | 69,947 | |||||||||||||||||||
| Provision for loan credit losses | 3,982 | 15,787 | 2,503 | (659) | (2,668) | ||||||||||||||||||||||||
| ALCL - BTH merger | — | 5,527 | — | — | — | ||||||||||||||||||||||||
| Loans charged off | 2,537 | 1,628 | 2,192 | 2,402 | 3,162 | ||||||||||||||||||||||||
| Loan recoveries | 2,357 | 550 | 639 | 648 | 469 | ||||||||||||||||||||||||
| Net charge-offs | 180 | 1,078 | 1,553 | 1,754 | 2,693 | ||||||||||||||||||||||||
| Balance at end of period | $ | 87,161 | $ | 83,359 | $ | 63,123 | $ | 62,173 | $ | 64,586 | |||||||||||||||||||
14
Origin Bancorp, Inc.
Loan Data - Continued
| At and For the Three Months Ended | |||||||||||||||||||||||||||||
| December 31, 2022 | September 30, 2022 | June 30, 2022 | March 31, 2022 | December 31, 2021 | |||||||||||||||||||||||||
| Credit quality ratios | (Dollars in thousands, unaudited) | ||||||||||||||||||||||||||||
| Total nonperforming assets to total assets | 0.15 | % | 0.20 | % | 0.23 | % | 0.32 | % | 0.36 | % | |||||||||||||||||||
| Total nonperforming loans to total loans | 0.19 | 0.24 | 0.30 | 0.45 | 0.50 | ||||||||||||||||||||||||
| Nonperforming LHFI to LHFI | 0.14 | 0.20 | 0.25 | 0.41 | 0.48 | ||||||||||||||||||||||||
| Past due LHFI to LHFI | 0.15 | 0.16 | 0.13 | 0.42 | 0.49 | ||||||||||||||||||||||||
| ALCL to nonperforming LHFI | 876.87 | 594.11 | 448.16 | 293.53 | 259.35 | ||||||||||||||||||||||||
| ALCL to total LHFI | 1.23 | 1.21 | 1.14 | 1.20 | 1.23 | ||||||||||||||||||||||||
ALCL to total LHFI, adjusted(2) | 1.28 | 1.29 | 1.25 | 1.33 | 1.43 | ||||||||||||||||||||||||
| Net charge-offs to total average LHFI (annualized) | 0.01 | 0.07 | 0.12 | 0.14 | 0.21 | ||||||||||||||||||||||||
____________________________
(1)Past due LHFI are defined as loans 30 days or more past due.
(2)The ALCL to total LHFI, adjusted is calculated at December 31, 2022 and 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 | |||||||||||||||||||||||||||||||||||
| December 31, 2022 | September 30, 2022 | December 31, 2021 | |||||||||||||||||||||||||||||||||
| Average Balance | Yield/Rate | Average Balance | Yield/Rate | Average Balance | Yield/Rate | ||||||||||||||||||||||||||||||
| Assets | (Dollars in thousands, unaudited) | ||||||||||||||||||||||||||||||||||
| Commercial real estate | $ | 2,205,219 | 5.07 | % | $ | 2,046,411 | 4.64 | % | $ | 1,612,078 | 4.10 | % | |||||||||||||||||||||||
| Construction/land/land development | 916,697 | 6.01 | 760,682 | 5.20 | 528,172 | 4.21 | |||||||||||||||||||||||||||||
| Residential real estate | 1,442,281 | 4.57 | 1,249,746 | 4.36 | 909,778 | 3.88 | |||||||||||||||||||||||||||||
| Commercial and industrial ("C&I") | 2,053,473 | 6.74 | 1,816,912 | 5.64 | 1,438,726 | 4.37 | |||||||||||||||||||||||||||||
| Mortgage warehouse lines of credit | 322,658 | 5.75 | 491,584 | 4.53 | 577,835 | 3.70 | |||||||||||||||||||||||||||||
| Consumer | 26,924 | 8.18 | 24,137 | 6.80 | 16,572 | 5.74 | |||||||||||||||||||||||||||||
| LHFI | 6,967,252 | 5.63 | 6,389,472 | 4.94 | 5,083,161 | 4.11 | |||||||||||||||||||||||||||||
| Loans held for sale | 28,842 | 5.39 | 29,927 | 4.12 | 47,352 | 5.20 | |||||||||||||||||||||||||||||
| Loans receivable | 6,996,094 | 5.62 | 6,419,399 | 4.93 | 5,130,513 | 4.12 | |||||||||||||||||||||||||||||
| Investment securities-taxable | 1,421,839 | 2.17 | 1,547,848 | 2.00 | 1,239,648 | 1.50 | |||||||||||||||||||||||||||||
| Investment securities-nontaxable | 253,073 | 3.34 | 317,175 | 2.69 | 265,261 | 2.23 | |||||||||||||||||||||||||||||
| Non-marketable equity securities held in other financial institutions | 63,321 | 3.68 | 73,819 | 2.10 | 45,153 | 4.16 | |||||||||||||||||||||||||||||
| Interest-bearing balances due from banks | 175,138 | 3.71 | 206,781 | 2.09 | 442,060 | 0.19 | |||||||||||||||||||||||||||||
| Total interest-earning assets | 8,909,465 | 4.96 | 8,565,022 | 4.23 | 7,122,635 | 3.35 | |||||||||||||||||||||||||||||
Noninterest-earning assets(1) | 621,078 | 637,399 | 436,935 | ||||||||||||||||||||||||||||||||
| Total assets | $ | 9,530,543 | $ | 9,202,421 | $ | 7,559,570 | |||||||||||||||||||||||||||||
| Liabilities and Stockholders’ Equity | |||||||||||||||||||||||||||||||||||
| Liabilities | |||||||||||||||||||||||||||||||||||
| Interest-bearing liabilities | |||||||||||||||||||||||||||||||||||
| Savings and interest-bearing transaction accounts | $ | 4,362,915 | 1.59 | % | $ | 4,157,092 | 0.66 | % | $ | 3,616,101 | 0.23 | % | |||||||||||||||||||||||
| Time deposits | 753,526 | 1.22 | 669,900 | 0.51 | 561,990 | 0.59 | |||||||||||||||||||||||||||||
| Total interest-bearing deposits | 5,116,441 | 1.54 | 4,826,992 | 0.64 | 4,178,091 | 0.28 | |||||||||||||||||||||||||||||
| FHLB advances and other borrowings | 552,903 | 3.02 | 538,020 | 2.00 | 267,737 | 1.72 | |||||||||||||||||||||||||||||
| Subordinated indebtedness | 201,731 | 4.95 | 186,803 | 4.81 | 157,395 | 4.62 | |||||||||||||||||||||||||||||
| Total interest-bearing liabilities | 5,871,075 | 1.79 | 5,551,815 | 0.91 | 4,603,223 | 0.51 | |||||||||||||||||||||||||||||
| Noninterest-bearing liabilities | |||||||||||||||||||||||||||||||||||
| Noninterest-bearing deposits | 2,593,321 | 2,582,500 | 2,110,816 | ||||||||||||||||||||||||||||||||
Other liabilities(1) | 152,297 | 129,354 | 129,917 | ||||||||||||||||||||||||||||||||
| Total liabilities | 8,616,693 | 8,263,669 | 6,843,956 | ||||||||||||||||||||||||||||||||
| Stockholders’ Equity | 913,850 | 938,752 | 715,614 | ||||||||||||||||||||||||||||||||
| Total liabilities and stockholders’ equity | $ | 9,530,543 | $ | 9,202,421 | $ | 7,559,570 | |||||||||||||||||||||||||||||
| Net interest spread | 3.17 | % | 3.32 | % | 2.84 | % | |||||||||||||||||||||||||||||
| NIM | 3.77 | 3.64 | 3.02 | ||||||||||||||||||||||||||||||||
NIM - (FTE)(2) | 3.81 | 3.68 | 3.06 | ||||||||||||||||||||||||||||||||
NIM - FTE, adjusted(3) | 3.73 | 3.61 | 2.92 | ||||||||||||||||||||||||||||||||
____________________________
(1)Includes Government National Mortgage Association (“GNMA”) repurchase average balances of $25.9 million, $29.1 million, and $45.2 million for the three months ended December 31, 2022, September 30, 2022, and December 31, 2021, respectively. The GNMA repurchase asset and liability are recorded as equal offsetting amounts in the consolidated balance sheets, with the asset included in Loans held for sale and the liability included in FHLB advances and other borrowings.
(2)In order to present pre-tax income and resulting yields on tax-exempt investments comparable to those on taxable investments, a tax-equivalent adjustment has been computed. This adjustment also includes income tax credits received on Qualified School Construction Bonds.
(3)NIM - FTE, adjusted, is calculated for the quarters ended December 31, 2022 and September 30, 2022, by removing the net purchase accounting 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 | |||||||||||||||||||||||||||||
| December 31, 2022 | September 30, 2022 | June 30, 2022 | March 31, 2022 | December 31, 2021 | |||||||||||||||||||||||||
| (Dollars in thousands, except per share amounts, unaudited) | |||||||||||||||||||||||||||||
| Calculation of adjusted net income: | |||||||||||||||||||||||||||||
| Net interest income after provision for credit losses | $ | 80,125 | $ | 61,581 | $ | 56,052 | $ | 52,829 | $ | 56,827 | |||||||||||||||||||
| Add: CECL provision for non-PCD loans | — | 14,890 | — | — | — | ||||||||||||||||||||||||
| Adjusted net interest income after provision for credit losses | 80,125 | 76,471 | 56,052 | 52,829 | 56,827 | ||||||||||||||||||||||||
| Total noninterest income | 13,429 | 13,723 | 14,216 | 15,906 | 16,701 | ||||||||||||||||||||||||
| 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 | — | — | — | — | 5,213 | ||||||||||||||||||||||||
| Adjusted total noninterest income | 13,429 | 14,009 | 14,216 | 15,906 | 11,413 | ||||||||||||||||||||||||
| Total noninterest expense | 57,254 | 56,241 | 44,150 | 42,774 | 40,346 | ||||||||||||||||||||||||
| Less: merger-related expenses | 1,179 | 3,614 | 807 | 571 | — | ||||||||||||||||||||||||
| Adjusted total noninterest expense | 56,075 | 52,627 | 43,343 | 42,203 | 40,346 | ||||||||||||||||||||||||
| Income tax expense | 6,822 | 2,820 | 4,807 | 5,278 | 4,860 | ||||||||||||||||||||||||
| Add: income tax expense on adjustment items | 248 | 3,946 | 169 | 120 | (1,110) | ||||||||||||||||||||||||
| Adjusted income tax expense | 7,070 | 6,766 | 4,976 | 5,398 | 3,750 | ||||||||||||||||||||||||
| Net income | $ | 29,478 | $ | 16,243 | $ | 21,311 | $ | 20,683 | $ | 28,322 | |||||||||||||||||||
| Adjusted net income | $ | 30,409 | $ | 31,087 | $ | 21,949 | $ | 21,134 | $ | 24,144 | |||||||||||||||||||
| Calculation of adjusted PTPP earnings: | |||||||||||||||||||||||||||||
| Provision for credit losses | $ | 4,624 | $ | 16,942 | $ | 3,452 | $ | (327) | $ | (2,647) | |||||||||||||||||||
| Less: CECL provision for non-PCD loans | — | 14,890 | — | — | — | ||||||||||||||||||||||||
| Adjusted provision for credit losses | $ | 4,624 | $ | 2,052 | $ | 3,452 | $ | (327) | $ | (2,647) | |||||||||||||||||||
| Adjusted net income | $ | 30,409 | $ | 31,087 | $ | 21,949 | $ | 21,134 | $ | 24,155 | |||||||||||||||||||
| Plus: adjusted provision for credit losses | 4,624 | 2,052 | 3,452 | (327) | (2,647) | ||||||||||||||||||||||||
| Plus: adjusted income tax expense | 7,070 | 6,766 | 4,976 | 5,398 | 3,750 | ||||||||||||||||||||||||
| Adjusted PTPP Earnings | $ | 42,103 | $ | 39,905 | $ | 30,377 | $ | 26,205 | $ | 25,258 | |||||||||||||||||||
| Calculation of adjusted dilutive EPS: | |||||||||||||||||||||||||||||
| Numerator: | |||||||||||||||||||||||||||||
| Adjusted net income | $ | 30,409 | $ | 31,087 | $ | 21,949 | $ | 21,134 | $ | 24,144 | |||||||||||||||||||
| Denominator: | |||||||||||||||||||||||||||||
| Weighted average diluted common shares outstanding | 30,867,511 | 28,481,619 | 23,788,164 | 23,770,791 | 23,609,874 | ||||||||||||||||||||||||
| Diluted earnings per share | $ | 0.95 | $ | 0.57 | $ | 0.90 | $ | 0.87 | $ | 1.20 | |||||||||||||||||||
| Adjusted diluted earnings per share | 0.99 | 1.09 | 0.92 | 0.89 | 1.02 | ||||||||||||||||||||||||
17
Origin Bancorp, Inc.
Non-GAAP Financial Measures
| At and For the Three Months Ended | |||||||||||||||||||||||||||||
| December 31, 2022 | September 30, 2022 | June 30, 2022 | March 31, 2022 | December 31, 2021 | |||||||||||||||||||||||||
| (Dollars in thousands, except per share amounts, unaudited) | |||||||||||||||||||||||||||||
| Calculation of adjusted ROAA and adjusted ROAE: | |||||||||||||||||||||||||||||
| Adjusted net income | $ | 30,409 | $ | 31,087 | $ | 21,949 | $ | 21,134 | $ | 24,144 | |||||||||||||||||||
| Divided by number of days in the quarter | 92 | 92 | 91 | 90 | 92 | ||||||||||||||||||||||||
| Multiplied by number of days in the year | 365 | 365 | 365 | 365 | 365 | ||||||||||||||||||||||||
| Annualized adjusted net income | 120,644 | 123,334 | 88,037 | 85,710 | 95,789 | ||||||||||||||||||||||||
| Divided by total average assets | 9,530,543 | 9,202,421 | 7,944,720 | 8,045,246 | 7,559,570 | ||||||||||||||||||||||||
| ROAA (annualized) | 1.23 | % | 0.70 | % | 1.08 | % | 1.04 | % | 1.49 | % | |||||||||||||||||||
| Adjusted ROAA (annualized) | 1.27 | 1.34 | 1.11 | 1.07 | 1.27 | ||||||||||||||||||||||||
| Divided by total average stockholders' equity | $ | 913,850 | $ | 938,752 | $ | 667,323 | $ | 722,504 | $ | 715,614 | |||||||||||||||||||
| ROAE (annualized) | 12.80 | % | 6.86 | % | 12.81 | % | 11.61 | % | 15.70 | % | |||||||||||||||||||
| Adjusted ROAE (annualized) | 13.20 | 13.14 | 13.19 | 11.86 | 13.39 | ||||||||||||||||||||||||
| Calculation of adjusted PTPP ROAA and adjusted PTPP ROAE: | |||||||||||||||||||||||||||||
| Adjusted PTPP earnings | $ | 42,103 | $ | 39,905 | $ | 30,377 | $ | 26,205 | $ | 25,258 | |||||||||||||||||||
| Divided by number of days in the quarter | 92 | 92 | 91 | 90 | 92 | ||||||||||||||||||||||||
| Multiplied by the number of days in the year | 365 | 365 | 365 | 365 | 365 | ||||||||||||||||||||||||
| Adjusted PTPP earnings, annualized | 167,039 | 158,319 | 121,842 | 106,276 | 100,208 | ||||||||||||||||||||||||
| Divided by total average assets | 9,530,543 | 9,202,421 | 7,944,720 | 8,045,246 | 7,559,570 | ||||||||||||||||||||||||
| Adjusted PTPP ROAA(annualized) | 1.75 | % | 1.72 | % | 1.53 | % | 1.32 | % | 1.33 | % | |||||||||||||||||||
| Divided by total average stockholders' equity | $ | 913,850 | $ | 938,752 | $ | 667,323 | $ | 722,504 | $ | 715,614 | |||||||||||||||||||
| Adjusted PTPP ROAE (annualized) | 18.28 | % | 16.86 | % | 18.26 | % | 14.71 | % | 14.00 | % | |||||||||||||||||||
| Calculation of tangible book value per common share and adjusted tangible book value per common share: | |||||||||||||||||||||||||||||
| Total common stockholders’ equity | $ | 949,943 | $ | 907,024 | $ | 646,373 | $ | 676,865 | $ | 730,211 | |||||||||||||||||||
| Less: goodwill | 128,679 | 136,793 | 34,153 | 34,153 | 34,368 | ||||||||||||||||||||||||
| Less: other intangible assets, net | 49,829 | 52,384 | 15,900 | 16,425 | 16,962 | ||||||||||||||||||||||||
| Tangible common equity | 771,435 | 717,847 | 596,320 | 626,287 | 678,881 | ||||||||||||||||||||||||
| Less: accumulated other comprehensive (loss) income | (159,875) | (175,233) | (115,979) | (65,890) | 5,729 | ||||||||||||||||||||||||
| Adjusted tangible common equity | 931,310 | 893,080 | 712,299 | 692,177 | 673,152 | ||||||||||||||||||||||||
| Divided by common shares outstanding at the end of the period | 30,746,600 | 30,661,734 | 23,807,677 | 23,748,748 | 23,746,502 | ||||||||||||||||||||||||
| Book value per common share | $ | 30.90 | $ | 29.58 | $ | 27.15 | $ | 28.50 | $ | 30.75 | |||||||||||||||||||
| Tangible book value per common share | 25.09 | 23.41 | 25.05 | 26.37 | 28.59 | ||||||||||||||||||||||||
| Adjusted tangible book value per common share | 30.29 | 29.13 | 29.92 | 29.15 | 28.35 | ||||||||||||||||||||||||
18
Origin Bancorp, Inc.
Non-GAAP Financial Measures
| At and For the Three Months Ended | |||||||||||||||||||||||||||||
| December 31, 2022 | September 30, 2022 | June 30, 2022 | March 31, 2022 | December 31, 2021 | |||||||||||||||||||||||||
| (Dollars in thousands, except per share amounts, unaudited) | |||||||||||||||||||||||||||||
| Calculation of ROATCE and adjusted ROATCE: | |||||||||||||||||||||||||||||
| Net income | $ | 29,478 | $ | 16,243 | $ | 21,311 | $ | 20,683 | $ | 28,322 | |||||||||||||||||||
| Divided by number of days in the quarter | 92 | 92 | 91 | 90 | 92 | ||||||||||||||||||||||||
| Multiplied by number of days in the year | 365 | 365 | 365 | 365 | 365 | ||||||||||||||||||||||||
| Annualized net income | $ | 116,951 | $ | 64,442 | $ | 85,478 | $ | 83,881 | $ | 112,364 | |||||||||||||||||||
| Adjusted net income | 30,409 | 31,087 | 21,949 | 21,134 | 24,155 | ||||||||||||||||||||||||
| Divided by number of days in the quarter | 92 | 92 | 91 | 90 | 92 | ||||||||||||||||||||||||
| Multiplied by number of days in the year | 365 | 365 | 365 | 365 | 365 | ||||||||||||||||||||||||
| Annualized adjusted net income | $ | 120,644 | $ | 123,334 | $ | 88,037 | $ | 85,710 | $ | 95,832 | |||||||||||||||||||
| Total average common stockholders’ equity | 913,850 | 938,752 | 667,323 | 722,504 | 715,614 | ||||||||||||||||||||||||
| Less: average goodwill | 131,302 | 95,696 | 34,153 | 34,366 | 26,824 | ||||||||||||||||||||||||
| Less: average other intangible assets, net | 51,495 | 40,918 | 16,242 | 16,775 | 3,172 | ||||||||||||||||||||||||
| Average tangible common equity | 731,053 | 802,138 | 616,928 | 671,363 | 685,618 | ||||||||||||||||||||||||
| ROATCE | 16.00 | % | 8.03 | % | 13.86 | % | 12.49 | % | 16.39 | % | |||||||||||||||||||
| Adjusted ROATCE | 16.50 | 15.38 | 14.27 | 12.77 | 13.98 | ||||||||||||||||||||||||
| Calculation of core efficiency ratio: | |||||||||||||||||||||||||||||
| Total noninterest expense | $ | 57,254 | $ | 56,241 | $ | 44,150 | $ | 42,774 | $ | 40,346 | |||||||||||||||||||
| Less: insurance and mortgage noninterest expense | 8,031 | 8,479 | 8,397 | 8,626 | 6,580 | ||||||||||||||||||||||||
| Less: merger-related expenses | 1,179 | 3,614 | 807 | 571 | — | ||||||||||||||||||||||||
| Adjusted total noninterest expense | 48,044 | 44,148 | 34,946 | 33,577 | 33,766 | ||||||||||||||||||||||||
| Net interest income | 84,749 | 78,523 | 59,504 | 52,502 | 54,180 | ||||||||||||||||||||||||
| Less: insurance and mortgage net interest income | 1,376 | 1,208 | 1,082 | 875 | 946 | ||||||||||||||||||||||||
| Add: Total noninterest income | 13,429 | 13,723 | 14,216 | 15,906 | 16,701 | ||||||||||||||||||||||||
| Less: insurance and mortgage noninterest income | 6,255 | 4,737 | 8,047 | 10,552 | 5,683 | ||||||||||||||||||||||||
| Less: gain on fair value of the Lincoln Agency | — | — | — | — | 5,213 | ||||||||||||||||||||||||
| Less: gain on sale of securities, net | — | 1,664 | — | — | 75 | ||||||||||||||||||||||||
| Adjusted total revenue | 90,547 | 84,637 | 64,591 | 56,981 | 58,964 | ||||||||||||||||||||||||
| Efficiency ratio | 58.32 | % | 60.97 | % | 59.89 | % | 62.53 | % | 56.92 | % | |||||||||||||||||||
| Core efficiency ratio | 53.06 | 52.16 | 54.10 | 58.93 | 57.27 | ||||||||||||||||||||||||
19
Origin Bancorp, Inc.
Non-GAAP Financial Measures
| Year Ended December 31, | |||||||||||
| 2022 | 2021 | ||||||||||
| (Dollars in thousands, except per share amounts, unaudited) | |||||||||||
| Calculation of adjusted net income: | |||||||||||
| Net interest income after provision for credit losses | $ | 250,587 | $ | 227,017 | |||||||
| Add: CECL provision for non-PCD loans | 14,890 | — | |||||||||
| Adjusted net interest income after provision for credit losses | 265,477 | 227,017 | |||||||||
| Total noninterest income | 57,274 | 62,193 | |||||||||
| Less: GNMA MSR impairment | (1,950) | — | |||||||||
| Less: gain on sales of securities, net | 1,664 | 1,748 | |||||||||
| Less: Gain on fair value of the Lincoln Agency | — | 5,213 | |||||||||
| Adjusted total noninterest income | 57,560 | 55,232 | |||||||||
| Total noninterest expense | 200,419 | 156,779 | |||||||||
| Less: merger-related expense | 6,171 | — | |||||||||
| Adjusted total noninterest expense | 194,248 | 156,779 | |||||||||
| Income tax expense | 19,727 | 23,885 | |||||||||
| Add: income tax expense on adjustment items | 4,483 | (1,462) | |||||||||
| Adjusted income tax expense | 24,210 | 22,423 | |||||||||
| Net Income | $ | 87,715 | $ | 108,546 | |||||||
| Adjusted net income | $ | 104,579 | $ | 103,047 | |||||||
| Calculation of adjusted PTPP earnings: | |||||||||||
| Provision for credit losses | $ | 24,691 | $ | (10,765) | |||||||
| Less: CECL provision for non-PCD loans | 14,890 | — | |||||||||
| Adjusted provision for credit losses | $ | 9,801 | $ | (10,765) | |||||||
| Adjusted net income | $ | 104,579 | $ | 103,047 | |||||||
| Plus: adjusted provision for credit losses | 9,801 | (10,765) | |||||||||
| Plus: adjusted income tax expense | 24,210 | 22,423 | |||||||||
| Adjusted PTPP earnings | $ | 138,590 | $ | 114,705 | |||||||
| Calculation of adjusted dilutive EPS: | |||||||||||
| Numerator: | |||||||||||
| Adjusted net income | $ | 104,579 | $ | 103,047 | |||||||
| Denominator: | |||||||||||
| Weighted average diluted common shares outstanding | 26,760,592 | 23,608,586 | |||||||||
| Diluted earnings per share | $ | 3.28 | $ | 4.60 | |||||||
| Adjusted diluted earnings per share | 3.91 | 4.36 | |||||||||
20
Origin Bancorp, Inc.
Non-GAAP Financial Measures
| Year Ended December 31, | |||||||||||
| 2022 | 2021 | ||||||||||
| (Dollars in thousands, except per share amounts, unaudited) | |||||||||||
| Calculation of adjusted ROAA and adjusted ROAE: | |||||||||||
| Adjusted net income | $ | 104,579 | $ | 103,047 | |||||||
| Divided by total average assets | 8,686,231 | 7,470,927 | |||||||||
| ROAA | 1.01 | % | 1.45 | % | |||||||
| Adjusted ROAA | 1.20 | 1.38 | |||||||||
| Divided by total average stockholders' equity | $ | 811,483 | $ | 687,648 | |||||||
| ROAE | 10.81 | % | 15.79 | % | |||||||
| Adjusted ROAE | 12.89 | 14.99 | |||||||||
| Calculation of adjusted PTPP ROAA and adjusted PTPP ROAE: | |||||||||||
| Adjusted PTPP Earnings | $ | 138,590 | $ | 114,705 | |||||||
| Divided by total average assets | 8,686,231 | 7,470,927 | |||||||||
| Adjusted PTPP ROAA | 1.60 | % | 1.54 | % | |||||||
| Divided by total average stockholders' equity | $ | 811,483 | $ | 687,648 | |||||||
| Adjusted PTPP ROAE | 17.08 | % | 16.68 | % | |||||||
| Calculation of tangible book value per common share and adjusted tangible book value per common share: | |||||||||||
| Total common stockholders' equity | $ | 949,943 | $ | 730,211 | |||||||
| Less: goodwill | 128,679 | 34,368 | |||||||||
| Less: other intangible assets, net | 49,829 | 16,962 | |||||||||
| Tangible Common Equity | 771,435 | 678,881 | |||||||||
| Less: accumulated other comprehensive income (loss) | (159,875) | 5,729 | |||||||||
| Adjusted Tangible Common Equity | 931,310 | 673,152 | |||||||||
| Divided by common shares outstanding at the end of the period | 30,746,600 | 23,746,502 | |||||||||
| Book value per common share | $ | 30.90 | $ | 30.75 | |||||||
| Tangible book value per common share | 25.09 | 28.59 | |||||||||
| Adjusted tangible book value per common share | 30.29 | 28.35 | |||||||||
| Calculation of ROATCE and adjusted ROATCE: | |||||||||||
| Net income | $ | 87,715 | $ | 108,546 | |||||||
| Adjusted net income | 104,579 | 103,047 | |||||||||
| Total average common stockholders’ equity | 811,483 | 687,648 | |||||||||
| Less: average goodwill | 74,205 | 26,762 | |||||||||
| Less: average other intangible assets, net | 31,479 | 3,363 | |||||||||
| Average tangible common equity | 705,799 | 657,523 | |||||||||
| ROATCE | 12.43 | % | 16.51 | % | |||||||
| Adjusted ROATCE | 14.82 | 15.67 | |||||||||
21
Origin Bancorp, Inc.
Non-GAAP Financial Measures
| Year Ended December 31, | |||||||||||
| 2022 | 2021 | ||||||||||
| (Dollars in thousands, except per share amounts, unaudited) | |||||||||||
| Calculation of core efficiency ratio: | |||||||||||
| Total noninterest expense | $ | 200,419 | $ | 156,779 | |||||||
| Less: insurance and mortgage noninterest expense | 33,533 | 27,484 | |||||||||
| Less: merger-related expenses | 6,171 | — | |||||||||
| Less: FHLB early termination fee | — | 1,613 | |||||||||
| Adjusted total expense | 160,715 | 127,682 | |||||||||
| Net interest income | 275,278 | 216,252 | |||||||||
| Less: insurance and mortgage net interest income | 4,541 | 3,975 | |||||||||
| Add: Total noninterest income | 57,274 | 62,193 | |||||||||
| Less: insurance and mortgage noninterest income | 29,591 | 26,025 | |||||||||
| Less: gain on fair value of the Lincoln Agency | — | 5,213 | |||||||||
| Less: gain on sale of securities, net | 1,664 | 1,748 | |||||||||
| Adjusted total revenue | 296,756 | 241,484 | |||||||||
| Efficiency ratio | 60.27 | % | 56.31 | % | |||||||
| Core efficiency ratio | 54.16 | 52.87 | |||||||||
22
4Q AND FULL YEAR 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, 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: the impact of current and future economic conditions generally and in the financial services industry, nationally and within Origin’s primary market areas, including the effects of declines in the real estate market, high unemployment rates, inflationary pressures, elevated interest rates and slowdowns in economic growth, as well as the financial stress on borrowers and changes to customer and client behavior as a result of the foregoing, 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, competition, and the cost of doing business); the effectiveness of Origin's risk management framework and quantitative models; Origin's inability to receive dividends from Origin Bank and to service debt, pay dividends to Origin's common stockholders, repurchase Origin's shares of common stock and satisfy obligations as they become due; 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, as well as from fintech companies, 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; a deterioration of the credit rating for U.S. long-term sovereign debt, actions that the U.S. government may take to avoid exceeding the debt ceiling, or uncertainties surrounding the debt ceiling and the federal budget; 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: adjusted net income, adjusted PTPP, adjusted diluted EPS, NIM-FTE, adjusted, adjusted ROAA, adjusted PTPP ROAA, adjusted ROAE, adjusted PTPP ROAE, tangible book value per common share, adjusted tangible book value per common share, ROATCE, adjusted ROATCE and core efficiency ratio. 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(2) 2022 Loans: $4,747 Deposits: $4,261 LOUISIANA Entry: 1912 Loans: $1,447 Deposits: $2,916 DOLLARS IN MILLIONS, UNAUDITED (1) 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 12/31/2022. * Please see slide 35 for all footnote references included above. MISSISSIPPI Entry: 2010 Loans: $611 Deposits: $599 8% 9% 38% 21% 54% 70% Loans (1)Deposits ICS ICS 9 9 19 6
ORIGIN BANCORP, INC. _______ 4 A UNIQUE & DEFINED CULTURE
ORIGIN BANCORP, INC. _______ QTD YTD Balance Sheet 4Q22 3Q22 Linked Qtr % Δ 4Q21 YoY % Δ 4Q22 4Q21 YoY % Δ Total Loans Held for Investment ("LHFI") $ 7,090,022 $ 6,882,681 3.0 % $ 5,231,331 35.5 % $ 7,090,022 $ 5,231,331 35.5 % Total Assets 9,686,067 9,462,639 2.4 7,861,285 23.2 9,686,067 7,861,285 23.2 Total Deposits 7,775,702 7,777,327 — 6,570,693 18.3 7,775,702 6,570,693 18.3 Income Statement Net Income 29,478 16,243 81.5 28,322 4.1 87,715 108,546 (19.2) Adjusted Net Income(3) 30,409 31,087 (2.2) 24,144 25.9 104,579 103,047 1.5 Adjusted Pre-Tax, Pre-Provision ("adjusted PTPP") Earnings(3) 42,103 39,905 5.5 25,258 66.7 138,590 114,705 20.8 Diluted EPS 0.95 0.57 66.7 1.20 (20.8) 3.28 4.60 (28.7) Adjusted Diluted EPS(3) 0.99 1.09 (9.2) 1.02 (2.9) 3.91 4.36 (10.3) Selected Ratios NIM - FTE 3.81 % 3.68 % 3.5 % 3.06 % 24.5 % 3.42 % 3.10 % 10.3 % NIM - FTE, adjusted(4) 3.73 3.61 3.3 2.92 27.7 3.38 3.01 12.3 Return on Average Assets (annualized) ("ROAA") 1.23 0.70 75.7 1.49 (17.4) 1.01 1.45 (30.3) Adjusted ROAA (annualized)(3) 1.27 1.34 (5.2) 1.27 — 1.20 1.38 (13.0) Adjusted PTPP ROAA (annualized)(3) 1.75 1.72 1.7 1.33 31.6 1.60 1.54 3.9 Return on Average Stockholders’ Equity (annualized) ("ROAE") 12.80 6.86 86.6 15.70 (18.5) 10.81 15.79 (31.5) Adjusted ROAE (annualized)(3) 13.20 13.14 0.5 13.39 (1.4) 12.89 14.99 (14.0) Adjusted PTPP ROAE (annualized)(3) 18.28 16.86 8.4 14.00 30.6 17.08 16.68 2.4 Book Value per Common Share(5) 30.90 29.58 4.5 30.75 0.5 30.90 30.75 0.5 Tangible Book Value per Common Share(3)(5) 25.09 23.41 7.2 28.59 (12.2) 25.09 28.59 (12.2) Adjusted Tangible Book Value per Common Share(3) 30.29 29.13 4.0 28.35 6.8 30.29 28.35 6.8 Return on Average Tangible Common Equity ("ROATCE")(3) 16.00 8.03 99.3 16.39 (2.4) 12.43 16.51 (24.7) Adjusted ROATCE(3) 16.50 15.38 7.3 13.98 18.0 14.82 15.67 (5.4) Efficiency Ratio 58.32 60.97 (4.3) 56.92 2.5 60.27 56.31 7.0 Core Efficiency Ratio(3) 53.06 52.16 1.7 57.27 (7.4) 54.16 52.87 2.4 Allowance for Loan Credit Losses ("ALCL") to Total LHFI, adjusted(6) 1.28 1.29 (0.8) 1.43 (10.5) 1.28 1.43 (10.5) DOLLARS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS, UNAUDITED 5 PERFORMANCE HIGHLIGHTS - FOURTH QUARTER & FULL YEAR 2022 * Please see slide 35 for all footnote references included above.
ORIGIN BANCORP, INC. _______ TRENDING KEY MEASURES 47,785 98,178 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 4Q 22 Total Revenue ($) UNAUDITED Diluted EPS ($)Net Income ($) Total LHFI, Adjusted ($)(7) Total Deposits ($) 0.53 0.95 2Q 18 3Q 18 4Q 18 1Q 19 2Q 19 3Q 19 4Q 19 1Q 20 2Q 20 3Q 20 4Q 20 1Q 21 2Q 21 3Q 21 4Q 21 1Q 22 2Q 22 3Q 22 4Q 22 12,702 29,478 2Q 18 3Q 18 4Q 18 1Q 19 2Q 19 3Q 19 4Q 19 1Q 20 2Q 20 3Q 20 4Q 20 1Q 21 2Q 21 3Q 21 4Q 21 1Q 22 2Q 22 3Q 22 4Q 22 3,672 7,776 2Q 18 3Q 18 4Q 18 1Q 19 2Q 19 3Q 19 4Q 19 1Q 20 2Q 20 3Q 20 4Q 20 1Q 21 2Q 21 3Q 21 4Q 21 1Q 22 2Q 22 3Q 22 4Q 22 3,102 6,805 2Q 18 3Q 18 4Q 18 1Q 19 2Q 19 3Q 19 4Q 19 1Q 20 2Q 20 3Q 20 4Q 20 1Q 21 2Q 21 3Q 21 4Q 21 1Q 22 2Q 22 3Q 22 4Q 22 DOLLARS IN MILLIONS DOLLARS IN THOUSANDS DOLLARS IN THOUSANDS 6 Total LHFI ($) DOLLARS IN MILLIONS 3,372 7,090 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 4Q 22 DOLLARS IN MILLIONS * Please see slide 35 for all footnote references included above.
ORIGIN BANCORP, INC. _______ TRENDING KEY MEASURES CONTINUED Efficiency Ratio (%) 66.99 58.32 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 4Q 22 UNAUDITED Net Charge Offs ($) 121 180 2Q 18 3Q 18 4Q 18 1Q 19 2Q 19 3Q 19 4Q 19 1Q 20 2Q 20 3Q 20 4Q 20 1Q 21 2Q 21 3Q 21 4Q 21 1Q 22 2Q 22 3Q 22 4Q 22 Net Charge Offs to Total Average LHFI (%)(8) 0.01 0.01 2Q 18 3Q 18 4Q 18 1Q 19 2Q 19 3Q 19 4Q 19 1Q 20 2Q 20 3Q 20 4Q 20 1Q 21 2Q 21 3Q 21 4Q 21 1Q 22 2Q 22 3Q 22 4Q 22 DOLLARS IN THOUSANDS Book Value per Common Share ($)(5) 1.17 1.23 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 4Q 22 ROAA (%)(8) 7 9.94 12.80 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 4Q 22 ROAE (%)(8) 22.10 30.90 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 4Q 22 * Please see slide 35 for all footnote references included above.
ORIGIN BANCORP, INC. _______ TRENDING KEY NON-GAAP MEASURES(3) Adjusted Diluted EPS ($) UNAUDITED Adjusted Net Income ($) Adjusted PTPP Earnings ($) DOLLARS IN THOUSANDS Core Efficiency Ratio (%) 63.51 53.06 2Q 18 3Q 18 4Q 18 1Q 19 2Q 19 3Q 19 4Q 19 1Q 20 2Q 20 3Q 20 4Q 20 1Q 21 2Q 21 3Q 21 4Q 21 1Q 22 2Q 22 3Q 22 4Q 22 21.07 25.09 2Q 18 3Q 18 4Q 18 1Q 19 2Q 19 3Q 19 4Q 19 1Q 20 2Q 20 3Q 20 4Q 20 1Q 21 2Q 21 3Q 21 4Q 21 1Q 22 2Q 22 3Q 22 4Q 22 Tangible Book Value per Common Share ($)(5) 8 21.24 30.29 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 4Q 22 Adjusted Tangible Book Value per Common Share ($) 13,796 42,103 2Q 18 3Q 18 4Q 18 1Q 19 2Q 19 3Q 19 4Q 19 1Q 20 2Q 20 3Q 20 4Q 20 1Q 21 2Q 21 3Q 21 4Q 21 1Q 22 2Q 22 3Q 22 4Q 22 DOLLARS IN THOUSANDS 11,140 30,409 2Q 18 3Q 18 4Q 18 1Q 19 2Q 19 3Q 19 4Q 19 1Q 20 2Q 20 3Q 20 4Q 20 1Q 21 2Q 21 3Q 21 4Q 21 1Q 22 2Q 22 3Q 22 4Q 22 0.50 2Q 18 3Q 18 4Q 18 1Q 19 2Q 19 3Q 19 4Q 19 1Q 20 2Q 20 3Q 20 4Q 20 1Q 21 2Q 21 3Q 21 4Q 21 1Q 22 2Q 22 3Q 22 4Q 22 0.99 * Please see slide 35 for all footnote references included above.
ORIGIN BANCORP, INC. _______ TRENDING KEY NON-GAAP MEASURES CONTINUED(3) Adjusted ROAE (%) UNAUDITED, ANNUALIZED Adjusted ROAA (%) Adjusted PTPP ROAA (%) Adjusted PTPP ROAE (%) 10.44 16.00 2Q 18 3Q 18 4Q 18 1Q 19 2Q 19 3Q 19 4Q 19 1Q 20 2Q 20 3Q 20 4Q 20 1Q 21 2Q 21 3Q 21 4Q 21 1Q 22 2Q 22 3Q 22 4Q 22 ROATCE (%)(9) 9 9.15 16.50 2Q 18 3Q 18 4Q 18 1Q 19 2Q 19 3Q 19 4Q 19 1Q 20 2Q 20 3Q 20 4Q 20 1Q 21 2Q 21 3Q 21 4Q 21 1Q 22 2Q 22 3Q 22 4Q 22 Adjusted ROATCE (%) 1.27 1.75 2Q 18 3Q 18 4Q 18 1Q 19 2Q 19 3Q 19 4Q 19 1Q 20 2Q 20 3Q 20 4Q 20 1Q 21 2Q 21 3Q 21 4Q 21 1Q 22 2Q 22 3Q 22 4Q 22 8.72 13.20 2Q 18 3Q 18 4Q 18 1Q 19 2Q 19 3Q 19 4Q 19 1Q 20 2Q 20 3Q 20 4Q 20 1Q 21 2Q 21 3Q 21 4Q 21 1Q 22 2Q 22 3Q 22 4Q 22 1.02 1.27 2Q 18 3Q 18 4Q 18 1Q 19 2Q 19 3Q 19 4Q 19 1Q 20 2Q 20 3Q 20 4Q 20 1Q 21 2Q 21 3Q 21 4Q 21 1Q 22 2Q 22 3Q 22 4Q 22 10.80 18.28 2Q 18 3Q 18 4Q 18 1Q 19 2Q 19 3Q 19 4Q 19 1Q 20 2Q 20 3Q 20 4Q 20 1Q 21 2Q 21 3Q 21 4Q 21 1Q 22 2Q 22 3Q 22 4Q 22 * Please see slide 35 for all footnote references included above.
ORIGIN BANCORP, INC. _______ ASSET AND STOCKHOLDERS' EQUITY GROWTH 1997 - 2022 UNAUDITED, DOLLARS IN MILLIONS Total Assets ($) 148 9,686 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 20 22 Total Stockholders' Equity ($) 950 19 97 19 98 19 99 20 00 20 01 20 02 20 03 20 04 20 05 20 06 20 07 20 08 20 09 20 10 20 11 20 12 20 13 20 14 20 15 20 16 20 17 20 18 20 19 20 20 20 21 20 22 CAGR 18.32% CAGR 18.71% 10 100 1,785 1,297 Origin Bancorp, Inc. Cumulative Return ($) KBW Nasdaq Bank Total Return Index ($) 12 /3 1/ 96 12 /3 1/ 97 12 /3 1/ 98 12 /3 1/ 99 12 /3 1/ 00 12 /3 1/ 01 12 /3 1/ 02 12 /3 1/ 03 12 /3 1/ 04 12 /3 1/ 05 12 /3 1/ 06 12 /3 1/ 07 12 /3 1/ 08 12 /3 1/ 09 12 /3 1/ 10 12 /3 1/ 11 12 /3 1/ 12 12 /3 1/ 13 12 /3 1/ 14 12 /3 1/ 15 12 /3 1/ 16 12 /3 1/ 17 12 /3 1/ 18 12 /3 1/ 19 12 /3 1/ 20 12 /3 1/ 21 12 /3 1/ 22 0 500 1,000 1,500 2,000 2,500 Total Shareholder Return ($)(10) 11 IPO * Please see slide 35 for all footnote references included above.
ORIGIN BANCORP, INC. _______ 11 1,741 1,956 2,247 2,620 4,747 1,067 1,127 1,343 1,545 2,746674 829 904 1,075 1,631 369 DFW Houston East Texas 2018 2019 2020 2021 2022 Deposit Trends by Texas Market ($) Loan Trends by Texas Market ($)(11) TEXAS GROWTH STORY Texas Franchise Highlights DOLLARS IN MILLIONS, UNAUDITED • 34 locations throughout 10 counties including the 4th and 5th largest MSAs in the United States • Texas franchise represents 70% of LHFI, excluding mortgage warehouse loans, and 54% of deposits at December 31, 2022. 1,395 1,854 2,574 3,132 4,261 772 989 1,581 1,925 2,196623 865 993 1,207 1,173 892 DFW Houston East Texas 2018 2019 2020 2021 2022 CAGR 28.5 % CAGR 32.2 % * Please see slide 35 for all footnote references included above. (2) (2)
ORIGIN BANCORP, INC. _______ 12 LOAN GROWTH 3,581 3,869 4,094 4,498 6,805 3,581 3,869 4,094 5,593 1,212 Origin BTH 2018 2019 2020 2021 2022 2,000 4,000 6,000 8,000 LHFI Key Data DOLLARS IN MILLIONS, UNAUDITED IDT • LHFI, excluding mortgage warehouse lines of credit, increased 90.0% from 12/31/2018, with a CAGR of 17.4%. Total C&I, owner occupied CRE and C&D, increased 75.3% from 12/31/2018, with a CAGR of 15.1%. • Total LHFI at December 31, 2022, excluding mortgage warehouse lines of credit, were $6.81 billion, with the BTH merger contributing $1.2 billion, or 37.6%%, of the total LHFI growth, net of purchase accounting adjustments. • Total mortgage warehouse lines of credit were $284.9 million, or 4.0%, of total LHFI at December 31, 2022. LHFI Growth excluding MW LOC ($)(12) CAGR: 17.4% 1,803 1,902 1,833 2,032 3,160 1,803 1,902 1,833 2,032 2,492 668 Origin BTH 2018 2019 2020 2021 2022 1,000 2,000 3,000 4,000 C&I, Owner Occupied CRE and C&D Growth ($)(12) CAGR: 15.1% * Please see slide 35 for all footnote references included above.
ORIGIN BANCORP, INC. _______ Commercial & Industrial ("C&I") 28% Owner Occupied Construction/ Land/Land Development ("C&D"): 4% Owner Occupied Commercial Real Estate ("CRE"): 12% Mtg. WH LOC: 4% Non- Owner Occupied C&D: 10% Non-Owner Occupied CRE: 21% Residential Real Estate & Consumer 21% Real Estate & Construction: 8% Retail Shopping: 7% Office Building: 5% Healthcare: 3% Multi-family: 2% Hotel: 1% Restaurant: 1% Finance & Insurance: 1% Gov. & Edu.: 1% Misc: 2% Real Estate & Construction: 9% Finance & Insurance: 6% Mtg. WH LOC: 4% Transportation Svcs: 3% Energy: 3% Retail Dealers: 2% Healthcare: 2% Retail Shopping: 2% Restaurants: 2% Commercial Svcs: 2% Consumer Svcs: 2% Professional Svcs: 2% Banks: 1% Wholesale Distribution: 1% Entertainment: 1%Misc 6% 13 WELL DIVERSIFIED LOAN PORTFOLIO (Dollars in thousands) 4Q22 3Q22 2Q22 1Q22 4Q21 C&I (14) $ 2,051,161 $ 1,967,037 $ 1,429,338 $ 1,326,443 $ 1,348,474 Owner Occupied CRE 843,006 800,981 609,358 588,279 523,655 Owner Occupied C&D 265,838 248,602 187,249 179,074 160,131 Mtg. WH LOC 284,867 460,573 531,888 503,249 627,078 Total Commercial 3,444,872 3,477,193 2,757,833 2,597,045 2,659,338 Non-Owner Occupied CRE 1,461,672 1,373,366 1,299,696 1,213,103 1,169,857 Non-Owner Occupied C&D 679,787 604,709 448,307 414,276 369,952 Residential Real Estate 1,477,538 1,399,182 1,005,623 922,054 909,739 Consumer Loans 26,153 28,231 15,733 15,774 16,684 PPP Loans (14) — — 901 32,154 105,761 Total Loans $ 7,090,022 $ 6,882,681 $ 5,528,093 $ 5,194,406 $ 5,231,331 Loan Portfolio Details Non-Owner Occupied CRE and C&D: (13) $2,141 C&I, Owner Occupied CRE and C&D, MW LOC: (13) $3,445 C&I, Owner Occupied CRE and C&D, Mtg. WH LOC: 48% Non-Owner Occupied CRE and C&D: 31% Loan Composition at December 31, 2022.: (13) $7,090 DOLLARS IN MILLIONS, UNAUDITED * Please see slide 35 for all footnote references included above.
ORIGIN BANCORP, INC. _______ 1.35 1.36 0.94 1.01 1.05 Classified LHFI / Total LHFI, adjusted (%) Net Charge-Offs / Average LHFI excl. PPP Loans (annualized) (%) 4Q21 1Q22 2Q22 3Q22 4Q22 0.22 0.14 0.12 0.49 0.41 0.25 0.50 0.42 0.13 Nonperforming LHFI / LHFI, excl. PPP loans (%) Past due LHFI / LHFI, excl. PPP loans (%) 4Q21 1Q22 2Q22 3Q22 4Q22 14 CREDIT QUALITY Asset Quality Trends (%) Allowance for Loan Credit Losses ("ALCL") 64,586 62,173 63,123 83,359 87,161 1.43 1.33 1.25 ALCL as a percentage of LHFI, adjusted (%) ALCL as a percentage of LHFI (%) ALCL ($) 4Q21 1Q22 2Q22 3Q22 4Q22 • Provision for credit loss expense for 4Q22 was $4.6 million, compared to a provision expense of $16.9 million in 3Q22, which included BTH merger- related non-PCD provision expense of $14.9 million, and compared to a provision net benefit of $2.6 million in 4Q21. • The BTH merger-related CECL allocation totaled $20.4 million in 3Q22. • ALCL to nonperforming LHFI is 876.87% at 4Q22, 594.11% at 3Q22, and 259.35% at 4Q21. DOLLARS IN THOUSANDS, UNAUDITED 0.20(15) 0.16(15) 0.07(15) 1.23 1.211.20 1.14 1.29(6) 0.14(15) 0.15(15) 0.01(15) 1.28(6) 1.23 * Please see slide 35 for all footnote references included above.
ORIGIN BANCORP, INC. _______ 1,505 1,662 1,869 1,865 1,675 1.63 1.59 1.85 2.12 2.34 Total Securities ($) Yield (%) 4Q21 1Q22 2Q22 3Q22 4Q22 Investment Securities Average Balance and Yield INVESTMENT SECURITIES DOLLARS IN MILLIONS, UNAUDITED • The available for sale securities portfolio ended 4Q22 with a net unrealized loss of $203.5 million, pre-tax, largely due to the steepening of the short end of the yield curve during 2022. • Total portfolio weighted average effective duration was 5.1 years as of December 31, 2022. 15 5.7 (65.9) (116.0) (175.2) (159.9) 4Q21 1Q22 2Q22 3Q22 4Q22 Accumulated Other Comprehensive (Loss) Income(16) ($) Sector Fair Value % Market Price WAL Effective Duration Treasury/ Agency $ 248.4 15.1 % 94.38 2.50 2.42 MBS 664.2 40.4 89.92 5.53 5.04 CMO 185.2 11.3 88.60 6.10 5.51 Municipal 389.5 23.7 93.90 8.59 7.19 Corporate/ Other 154.2 9.4 93.84 5.28 4.32 Total $ 1,641.5 100 % 91.75 5.84 5.14 Available for Sale Securities * Please see slide 35 for all footnote references included above.
ORIGIN BANCORP, INC. _______ 16 3,616 3,976 3,767 4,157 4,363 2,111 2,218 2,289 2,583 2,593 562 535 503 670 754 6,289 6,729 6,559 7,410 7,710 Interest-bearing Demand Noninterest-bearing Time Deposits 4Q21 1Q22 2Q22 3Q22 4Q22 Average Deposits ($) DEPOSIT TRENDS 0.59 0.54 0.49 1.22 0.64 1.54 0.19 0.17 0.19 1.02 Time Deposits Cost of Interest-bearing Deposits Cost of Total Deposits 4Q21 1Q22 2Q22 3Q22 4Q22 Deposit Cost Trends (QTD Annualized) (%) DOLLARS IN MILLIONS, UNAUDITED IDT • Total average deposits increased $300.3 million compared to the linked quarter, primarily due to the timing of the close of the merger, and $1.42 billion compared to 4Q21. • The cost of total deposits increased 83 basis points from 0.19% in 4Q21 to 1.02% in 4Q22. Average quarterly fed funds rate increased 353 basis points from 0.12% at 1Q22 to 3.65% at 4Q22. • Average noninterest-bearing deposits increased $482.5 million compared to 4Q21 and represented 33.6% of total average deposits. -50 0 10 230.12 0.77 2.18 3.65 Cumulative Deposit Beta Average Quarterly Fed Funds Rate 1Q22 2Q22 3Q22 4Q22 Deposit Beta (%) 0.41 0.51 0.290.28 0.26
ORIGIN BANCORP, INC. _______ 17 YIELDS, COSTS AND LHFI PROFILE Yield on LHFI (%) 4.11 4.08 4.26 3.25 3.29 5.36 6.82 1.02 2.47 2.14 3.62 Yield on LHFI Yield on LHFI excl. PPP Loans and PAA Avg. Prime Rate Avg. 1M LIBOR Avg. SOFR 4Q21 1Q22 2Q22 3Q22 4Q22 Cost of Funds (%) 0.34 0.33 0.35 1.24 1.54 0.41 1.02 1.26 Cost of Total Deposits & Borrowings Cost of Interest Bearing Deposits Cost of Total Deposits Cost of Total Deposits & Borrowings excl. PAA 4Q21 1Q22 2Q22 3Q22 4Q22 0.28 0.26 0.19 0.17 0.19 0.29 • LHFI with fixed rate: 43%; LHFI with floating rate: 57% at 4Q22. • $782.8 million LIBOR-based, $2.2 billion Prime-based and $605.8 million SOFR-based loans at 4Q22. 0.09 3.95 4.21 4.86(17) (17) 0.64 3.94 0.23 0.09 0.05 3.94 4.94 5.53(17) 5.63 0.62 0.71 0.63 * Please see slide 35 for all footnote references included above. 3.91
ORIGIN BANCORP, INC. _______ 18 DOLLARS IN THOUSANDS, UNAUDITED 54,180 52,502 59,504 78,523 84,749 45,035 46,202 54,241 71,494 78,174 5,385 3,897 4,544 5,614 4,678 3,760 2,403 719 1,415 1,897 3.06 2.86 3.23 3.68 3.81 2.92 2.76 3.20 3.61 3.73 Net Interest Income excl. MW LOC, adjusted ($) MW LOC Net Interest Income ($) PPP Net Interest Income ($) Net Purchase Accounting Accretion ($) NIM (FTE) (%) NIM (FTE), adjusted (%) 4Q21 1Q22 2Q22 3Q22 4Q22 NET INTEREST INCOME AND NIM TRENDS 84,749 78,523 11,128 8,535 545 482 70 (1,491) (1,474) (936) 3Q 22 RE Lo an s C&I L oa ns IB B al. D FB PAA Othe r Sav ing s & IB Tr an sa c. Acc ts. FH LB & O the r Bor ro wing s Tim e D ep os its Mtg. W H LO C 4Q 22 40,000 60,000 80,000 100,000 3.81 3.68 0.27 0.26 0.08 0.05 0.04 0.03 (0.47) (0.07) (0.06) 3Q 22 RE Lo an s C&I L oa ns Inv es tm en t S ec . Mtg. W H LO C IB B al. D FB Othe r Sav ing s a nd IB Tr an sc . A cc ts FH LB & O the r Bor ro wing s Tim e D ep os its 4Q 22 3.00 3.50 4.00 4.50 Net Interest Income Changes - 4Q22 ($) NIM-FTE Changes - 4Q22 (%) (18) (18) (10,633) * Please see slide 35 for all footnote references included above.
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 4Q22 19 Net Interest Income Noninterest Income 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 Noninterest Income ($)(19) Net Interest Income + Noninterest Income ($) NET REVENUE DISTRIBUTION DOLLARS IN THOUSANDS, UNAUDITED Components of Other Noninterest Income 98,178 10,615 4Q22 3Q22 2Q22 1Q22 4Q21 Gain on Fair Value of Lincoln Agency $ — $ — $ — $ — $ 5,200 Limited Partnership Investment Income (230) 112 282 (363) 50 Swap Fee Income (loss)(20) 292 25 1 139 (285) Gain on Sale of Securities — 1,664 — — 75 GNMA MSR impairment(19) — (1,950) — — — Other 2,449 2,452 1,612 1,580 1,984 Total $ 2,511 $ 2,303 $ 1,895 $ 1,356 $ 7,024 47,785 13,429 *Please see slide 35 for all footnote references included above. 77.8% 86.3%
ORIGIN BANCORP, INC. _______ 40,346 42,774 44,150 56,241 57,254 24,718 26,488 27,310 31,834 33,339 4,306 4,427 4,514 5,399 5,863 2,302 2,486 2,413 2,689 2,868 1,849 1,560 2,162 2,121 2,277 1,880 1,305 1,517 1,599 1,6763,614 1,179 1,872 2,554 5,097 5,400 4,902 7,113 7,498 Salaries and Employee Benefits Occupancy and Equipment, net Data Processing Office and Operations Loan-related Expenses Merger Transaction Expense Intangible Asset Amortization Other 4Q21 1Q22 2Q22 3Q22 4Q22 20 Efficiency Ratios (%)(3) NONINTEREST EXPENSE ANALYSIS DOLLARS IN THOUSANDS, UNAUDITED Noninterest Expense Composition ($) Consolidated Efficiency Ratio Core Efficiency Ratio 4Q21 1Q22 2Q22 3Q22 4Q22 57 .2 5 56 .9 2 62 .5 3 59 .8 9 58 .9 3 54 .1 0 Operating Leverage (%) E FF IC IE N C Y R A TI O (% ) N IE / A V E R A G E A S S E TS (% ) 2.16 2.17 2.03 2.08 2.12 2.16 2.23 2.42 2.38 57.86 54.49 56.69 57.21 56.92 62.53 59.89 60.97 58.32 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 40 60 80 100 1.5 2.0 2.5 3.0 60 .9 7 52 .1 6 571 807 58 .3 2 53 .0 6 537 525 194 * Please see slide 35 for all footnote references included above.
ORIGIN BANCORP, INC. _______ 9.2 8.8 9.1 9.6 9.7 9.7 9.3 9.5 9.1 9.9 Company Level Origin Bank Level 4Q21 1Q22 2Q22 3Q22 4Q22 11.4 11.3 11.0 10.7 11.1 12.0 11.9 11.4 10.9 11.5 Company Level Origin Bank Level 4Q21 1Q22 2Q22 3Q22 4Q22 21 CAPITAL Bank Level Company Level Sub-debt Impact 14.8 14.6 14.1 13.8 14.2 14.1 13.9 13.4 12.8 13.4 Company Level Origin Bank Level 4Q21 1Q22 2Q22 3Q22 4Q22 Total Capital Changes - 4Q22 ($)(21) 1,133.3 33.8 16.5 3.6 (1.8) (4.6) 3Q22 Net In come excl . Credit L oss Accr uals Goodwill a nd Intangibles Other S tockh olders' Equity Balances, n et Other Divid ends 4Q22 ICap ICap Total Capital to Risk-Weighted Assets (%)(21)Tier 1 Capital to Risk-Weighted Assets (%)(21) Tier 1 Capital to Average Assets (Leverage Ratio) (%)(21)(22) 1,180.7 Dollars in Millions * Please see slide 35 for all footnote references included above.
ORIGIN BANCORP, INC. _______ Calculation of adjusted net income: 4Q22 3Q22 2Q22 1Q22 4Q21 3Q21 2Q21 1Q21 4Q20 Net interest income after provision for credit losses $ 80,125 $ 61,581 $ 56,052 $ 52,829 $ 56,827 $ 56,462 $ 59,901 $ 53,827 $ 45,486 Add: CECL provision for non-PCD loans — 14,890 — — — — — — — Adjusted net interest income after provision for credit losses $ 80,125 $ 76,471 $ 56,052 $ 52,829 $ 56,827 $ 56,462 $ 59,901 $ 53,827 $ 45,486 Total noninterest income $ 13,429 $ 13,723 $ 14,216 $ 15,906 $ 16,701 $ 15,923 $ 12,438 $ 17,131 $ 15,381 Less: GNMA MSR Impairment — (1,950) — — — — — — — Less: Gain on sales of securities, net — 1,664 — — 75 — 5 1,668 225 Less: Gain on fair value of the Lincoln Agency — — — — 5,213 — — — — Adjusted total noninteret income $ 13,429 $ 14,009 $ 14,216 $ 15,906 $ 11,413 $ 15,923 $ 12,433 $ 15,463 $ 15,156 Total noninterest expense $ 57,254 $ 56,241 $ 44,150 $ 42,774 $ 40,346 $ 39,165 $ 37,832 $ 39,436 $ 38,884 Less: Merger expense 1,179 3,614 807 571 — — — — — Less: Early termination of LT FHLB advance — — 0 — 0 — — — — 1,613 — Adjusted total noninterest expense $ 56,075 $ 52,627 $ 43,343 $ 42,203 $ 40,346 $ 39,165 $ 37,832 $ 37,823 $ 38,884 Income tax expense $ 6,822 $ 2,820 $ 4,807 $ 5,278 $ 4,860 $ 6,242 $ 6,774 $ 6,009 $ 4,431 Add: Income tax expense on adjustment items 248 3,946 169 120 (1,110) — (1) (12) (47) Adjusted income tax expense $ 7,070 $ 6,766 $ 4,976 $ 5,398 $ 3,750 $ 6,242 $ 6,773 $ 5,997 $ 4,384 Net income $ 29,478 $ 16,243 $ 21,311 $ 20,683 $ 28,322 $ 26,978 $ 27,733 $ 25,513 $ 17,552 Adjusted net income $ 30,409 $ 31,087 $ 21,949 $ 21,134 $ 24,144 $ 26,978 $ 27,729 $ 25,470 $ 17,374 22 DOLLARS IN THOUSANDS, UNAUDITED RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
ORIGIN BANCORP, INC. _______ Calculation of adjusted net income, continued: 3Q20 2Q20 1Q20 4Q19 3Q19 2Q19 1Q19 4Q18 3Q18 2Q18 Net interest income after provision for credit losses $ 36,984 $ 24,887 $ 24,279 $ 41,718 $ 40,421 $ 40,984 $ 41,021 $ 40,338 $ 38,993 $ 36,859 Total noninterest income $ 18,051 $ 19,076 $ 12,144 $ 10,818 $ 12,880 $ 11,176 $ 11,604 $ 10,588 $ 10,237 $ 10,615 Less: Valuation adjustment on non- marketable equity security — — — — — 367 — — — 1,977 Less: Gain on sales of securities, net 301 — 54 — 20 — — (8) — — Less: Bank-owned life insurance policy — — 316 — — — — — — — Adjusted total noninteret income $ 17,750 $ 19,076 $ 11,774 $ 10,818 $ 12,860 $ 10,809 $ 11,604 $ 10,596 $ 10,237 $ 8,638 Total noninterest expense $ 38,734 $ 38,220 $ 36,097 $ 36,534 $ 35,064 $ 37,095 $ 35,381 $ 35,023 $ 34,344 $ 32,012 Less: FDIC fund assessment benefit — — — — (1,037) — — — — — Adjusted total noninteresst expense $ 38,734 $ 38,220 $ 36,097 $ 36,534 $ 36,101 $ 37,095 $ 35,381 $ 35,023 $ 34,344 $ 32,012 Income tax expense $ 3,206 $ 786 $ (427) $ 3,175 $ 3,620 $ 2,782 $ 3,089 $ 2,725 $ 2,568 $ 2,760 Add: Income tax expense on adjustment items (63) — (78) — (222) (77) — 2 — (415) Adjusted income tax expense $ 3,143 $ 786 $ (505) $ 3,175 $ 3,398 $ 2,705 $ 3,089 $ 2,727 $ 2,568 $ 2,345 Net income $ 13,095 $ 4,957 $ 753 $ 12,827 $ 14,617 $ 12,283 $ 14,155 $ 13,178 $ 12,318 $ 12,702 Adjusted net income $ 12,857 $ 4,957 $ 461 $ 12,827 $ 13,782 $ 11,993 $ 14,155 $ 13,184 $ 12,318 $ 11,140 23 DOLLARS IN THOUSANDS, UNAUDITED RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
ORIGIN BANCORP, INC. _______ Calculation of adjusted PTPP earnings: 4Q22 3Q22 2Q22 1Q22 4Q21 3Q21 2Q21 1Q21 4Q20 3Q20 Provision for credit losses $ 4,624 $ 16,942 $ 3,452 $ (327) $ (2,647) $ (3,921) $ (5,609) $ 1,412 $ 6,333 $ 13,633 Less: CECL provision for non- PCD loans — 14,890 — — — — — — — — Adjusted provision for credit losses $ 4,624 $ 2,052 $ 3,452 $ (327) $ (2,647) $ (3,921) $ (5,609) $ 1,412 $ 6,333 $ 13,633 Adjusted net income $ 30,409 $ 31,087 $ 21,949 $ 21,134 $ 24,144 $ 26,978 $ 27,729 $ 25,470 $ 17,374 $ 12,857 Plus: Adjusted provision for credit losses 4,624 2,052 3,452 (327) (2,647) (3,921) (5,609) 1,412 6,333 13,633 Plus: Adjusted income Tax Expense 7,070 6,766 4,976 5,398 3,750 6,242 6,773 5,997 4,384 3,143 Adjusted PTPP earnings $ 42,103 $ 39,905 $ 30,377 $ 26,205 $ 25,247 $ 29,299 $ 28,893 $ 32,879 $ 28,091 $ 29,633 2Q20 1Q20 4Q19 3Q19 2Q19 1Q19 4Q18 3Q18 2Q18 Provision for credit losses $ 21,403 $ 18,531 $ 2,377 $ 4,201 $ 1,985 $ 1,005 $ 1,723 $ 504 $ 311 Less: CECL provision for non- PCD loans — — — — — — — — — Adjusted provision for credit losses $ 21,403 $ 18,531 $ 2,377 $ 4,201 $ 1,985 $ 1,005 $ 1,723 $ 504 $ 311 Adjusted net income $ 4,957 $ 461 $ 12,827 $ 13,782 $ 11,993 $ 14,155 $ 13,184 $ 12,318 $ 11,140 Plus: Adjusted provision for credit losses 21,403 18,531 2,377 4,201 1,985 1,005 1,723 504 311 Plus: Adjusted income Tax Expense 786 (505) 3,175 3,398 2,705 3,089 2,727 2,568 2,345 Adjusted PTPP earnings $ 27,146 $ 18,487 $ 18,379 $ 21,381 $ 16,683 $ 18,249 $ 17,634 $ 15,390 $ 13,796 24 DOLLARS IN THOUSANDS, UNAUDITED RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
ORIGIN BANCORP, INC. _______ Calculation of adjusted dilutive EPS: 4Q22 3Q22 2Q22 1Q22 4Q21 3Q21 2Q21 1Q21 4Q20 3Q20 Numerator: Adjusted net income $ 30,409 $ 31,087 $ 21,949 $ 21,134 $ 24,144 $ 26,978 $ 27,729 $ 25,470 $ 17,374 $ 12,857 Denominator: Weighted average diluted common shares outstanding 30,867,511 28,481,619 23,788,164 23,770,791 23,609,874 23,613,010 23,604,566 23,590,430 23,543,917 23,500,596 Diluted earnings per share $ 0.95 $ 0.57 $ 0.90 $ 0.87 $ 1.20 $ 1.14 $ 1.17 $ 1.08 $ 0.75 $ 0.56 Adjusted diluted earnings per share 0.99 1.09 0.92 0.89 1.02 1.14 1.17 1.08 0.74 0.55 2Q20 1Q20 4Q19 3Q19 2Q19 1Q19 4Q18 3Q18 2Q18 Numerator: Adjusted net income $ 4,957 $ 461 $ 12,827 $ 13,782 $ 11,993 $ 14,155 $ 13,184 $ 12,318 $ 11,140 Denominator: Weighted average diluted common shares outstanding 23,466,326 23,530,212 23,529,862 23,606,956 23,786,646 23,776,349 23,715,919 23,716,779 22,382,003 Diluted earnings per share $ 0.21 $ 0.03 $ 0.55 $ 0.62 $ 0.52 $ 0.60 $ 0.55 $ 0.52 $ 0.53 Adjusted diluted earnings per share 0.21 0.02 0.55 0.58 0.50 0.60 0.56 0.52 0.50 25 DOLLARS IN THOUSANDS, UNAUDITED RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
ORIGIN BANCORP, INC. _______ Calculation of adjusted ROAA and ROAE: 4Q22 3Q22 2Q22 1Q22 4Q21 3Q21 2Q21 1Q21 4Q20 3Q20 Adjusted net income $ 30,409 $ 31,087 $ 21,949 $ 21,134 $ 24,144 $ 26,978 $ 27,729 $ 25,470 $ 17,374 $ 12,857 Divided by number of days in the quarter 92 92 91 90 92 92 91 90 92 92 Multiplied by the number of days in the year 365 365 365 365 365 365 365 365 366 366 Annualized adjusted net income $ 120,644 $ 123,334 $ 88,037 $ 85,710 $ 95,789 $ 107,032 $ 111,221 $ 103,295 $ 69,118 $ 51,149 Divided by total average assets 9,530,543 9,202,421 7,944,720 8,045,246 7,559,570 7,464,813 7,474,951 7,382,495 7,164,028 6,746,585 ROAA (annualized) 1.23 % 0.70 % 1.08 % 1.04 % 1.49 % 1.43 % 1.49 % 1.40 % 0.97 % 0.77 % Adjusted ROAA (annualized) 1.27 1.34 1.11 1.07 1.27 1.43 1.49 1.40 0.96 0.76 Divided by total average stockholders' equity $ 913,850 $ 938,752 $ 667,323 $ 722,504 $ 715,614 $ 703,605 $ 672,698 $ 657,863 $ 639,508 $ 629,533 ROAE (annualized) 12.80 % 6.86 % 12.81 % 11.61 % 15.70 % 15.21 % 16.54 % 15.73 % 10.92 % 8.28 % Adjusted ROAE (annualized) 13.20 13.14 13.19 11.86 13.39 15.21 16.53 15.70 10.81 8.12 2Q20 1Q20 4Q19 3Q19 2Q19 1Q19 4Q18 3Q18 2Q18 Adjusted net income $ 4,957 $ 461 $ 12,827 $ 13,782 $ 11,993 $ 14,155 $ 13,184 $ 12,318 $ 11,140 Divided by number of days in the quarter 91 91 92 92 91 90 92 92 91 Multiplied by the number of days in the year 366 366 365 365 365 365 365 365 365 Annualized adjusted net income $ 19,937 $ 1,854 $ 50,890 $ 54,679 $ 48,104 $ 57,406 $ 52,306 $ 48,870 $ 44,682 Divided by total average assets 6,447,526 5,400,704 5,271,979 5,179,549 5,043,951 4,871,048 4,741,186 4,540,371 4,366,323 ROAA (annualized) 0.31 % 0.06 % 0.97 % 1.12 % 0.98 % 1.18 % 1.10 % 1.08 % 1.17 % Adjusted ROAA (annualized) 0.31 0.03 0.97 1.06 0.95 1.18 1.10 1.08 1.02 Divided by total average stockholders' equity $ 617,898 $ 611,162 $ 597,925 $ 588,504 $ 576,761 $ 560,091 $ 541,205 $ 534,250 $ 512,381 ROAE (annualized) 3.23 % 0.50 % 8.51 % 9.85 % 8.54 % 10.25 % 9.66 % 9.15 % 9.94 % Adjusted ROAE (annualized) 3.23 0.30 8.51 9.29 8.34 10.25 9.66 9.15 8.72 26 DOLLARS IN THOUSANDS, UNAUDITED RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
ORIGIN BANCORP, INC. _______ Calculation of adjusted PTPP ROAA & ROAE: 4Q22 3Q22 2Q22 1Q22 4Q21 3Q21 2Q21 1Q21 4Q20 3Q20 Adjusted PTPP earnings $ 42,103 $ 39,905 $ 30,377 $ 26,205 $ 25,247 $ 29,299 $ 28,893 $ 32,879 $ 28,091 $ 29,633 Divided by number of days in the quarter 92 92 91 90 92 92 91 90 92 92 Multiplied by the number of days in the year 365 365 365 365 365 365 365 365 366 366 Adjusted PTPP earnings, annualized $ 167,039 $ 158,319 $ 121,842 $ 106,276 $ 100,165 $ 116,241 $ 115,890 $ 133,343 $ 111,753 $ 117,888 Divided by total average assets 9,530,543 9,202,421 7,944,720 8,045,246 7,559,570 7,464,813 7,474,951 7,382,495 7,164,028 6,746,585 Adjusted PTPP ROAA (annualized) 1.75 % 1.72 % 1.53 % 1.32 % 1.33 % 1.56 % 1.55 % 1.81 % 1.56 % 1.75 % Divided by total average stockholders' equity $ 913,850 $ 938,752 $ 667,323 $ 722,504 $ 715,614 $ 703,605 $ 672,698 $ 657,863 $ 639,508 $ 629,533 Adjusted PTPP ROAE (annualized) 18.28 % 16.86 % 18.26 % 14.71 % 14.00 % 16.52 % 17.23 % 20.27 % 17.47 % 18.73 % 2Q20 1Q20 4Q19 3Q19 2Q19 1Q19 4Q18 3Q18 2Q18 Adjusted PTPP earnings $ 27,146 $ 18,487 $ 18,379 $ 21,381 $ 16,683 $ 18,249 $ 17,634 $ 15,390 $ 13,796 Divided by number of days in the quarter 91 91 92 92 91 90 92 92 91 Multiplied by the number of days in the year 366 366 365 365 365 365 365 365 365 Adjusted PTPP earnings, annualized $ 109,181 $ 74,354 $ 72,917 $ 84,827 $ 66,915 $ 74,010 $ 69,961 $ 61,058 $ 55,336 Divided by total average assets 6,447,526 5,400,704 5,271,979 5,179,549 5,043,951 4,871,048 4,741,186 4,540,371 4,366,323 Adjusted PTPP ROAA (annualized) 1.69 % 1.38 % 1.38 % 1.64 % 1.33 % 1.52 % 1.48 % 1.34 % 1.27 % Divided by total average stockholders' equity $ 617,898 $ 611,162 $ 597,925 $ 588,504 $ 576,761 $ 560,091 $ 541,205 $ 534,250 $ 512,381 Adjusted PTPP ROAE (annualized) 17.67 % 12.17 % 12.20 % 14.41 % 11.60 % 13.21 % 12.93 % 11.43 % 10.80 % 27 DOLLARS IN THOUSANDS, UNAUDITED RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
ORIGIN BANCORP, INC. _______ Calculation of tangible book value per common share(1) and adjusted tangible book value per common share: 4Q22 3Q22 2Q22 1Q22 4Q21 3Q21 2Q21 1Q21 4Q20 3Q20 Total common stockholders' equity $ 949,943 $ 907,024 $ 646,373 $ 676,865 $ 730,211 $ 705,667 $ 688,235 $ 656,355 $ 647,150 $ 627,637 Less: goodwill 128,679 136,793 34,153 34,153 34,368 26,741 26,741 26,741 26,741 26,741 Less: other intangible assets, net 49,829 52,384 15,900 16,425 16,962 3,089 3,283 3,505 3,739 3,976 Tangible common equity 771,435 717,847 596,320 626,287 678,881 675,837 658,211 626,109 616,670 596,920 Less: accumulated other comprehensive (loss) income (159,875) (175,233) (115,979) (65,890) 5,729 11,872 18,914 12,185 25,649 21,998 Adjusted tangible common equity 931,310 893,080 712,299 692,177 673,152 663,965 639,297 613,924 591,021 574,922 Divided by common shares outstanding at period end 30,746,600 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 Book value per common share(1) $ 30.90 $ 29.58 $ 27.15 $ 28.50 $ 30.75 $ 30.03 $ 29.28 $ 27.94 $ 27.53 $ 26.70 Tangible book value per common share(1) 25.09 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 30.29 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 Book value per common share(1) $ 26.16 $ 25.84 $ 25.52 $ 25.06 $ 24.58 $ 23.92 $ 23.17 $ 22.52 $ 22.10 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 28 RECONCILIATION OF NON-GAAP FINANCIAL MEASURES DOLLARS IN THOUSANDS, UNAUDITED * Please see slide 35 for all footnote references included above.
ORIGIN BANCORP, INC. _______ Calculation of ROATCE and Adjusted ROATCE: 4Q22 3Q22 2Q22 1Q22 4Q21 3Q21 2Q21 1Q21 4Q20 Net income $ 29,478 $ 16,243 $ 21,311 $ 20,683 $ 28,322 $ 26,978 $ 27,733 $ 25,513 $ 17,552 Divided by number of days in the quarter 92 92 91 90 92 92 91 90 92 Multiplied by number of days in the year 365 365 365 365 365 365 365 365 366 Annualized net income $ 116,951 $ 64,442 $ 85,478 $ 83,881 $ 112,364 $ 107,032 $ 111,237 $ 103,469 $ 69,826 Adjusted net income $ 30,409 $ 31,087 $ 21,949 $ 21,134 $ 24,144 $ 26,978 $ 27,729 $ 25,470 $ 17,374 Divided by number of days in the quarter 92 92 91 90 92 92 91 90 92 Multiplied by number of days in the year 365 365 365 365 365 365 365 365 366 Annualized adjusted net income $ 120,644 $ 123,334 $ 88,037 $ 85,710 $ 95,789 $ 107,032 $ 111,221 $ 103,295 $ 69,118 Total average common stockholders’ equity $ 913,850 $ 938,752 $ 667,323 $ 722,504 $ 715,614 $ 703,605 $ 672,698 $ 657,863 $ 639,508 Less: average goodwill 131,302 95,696 34,153 34,366 26,824 26,741 26,741 26,741 26,741 Less: average other intangible assets, net 51,495 40,918 16,242 16,775 3,172 3,211 3,424 3,651 3,889 Average tangible common equity $ 731,053 $ 802,138 $ 616,928 $ 671,363 $ 685,618 $ 673,653 $ 642,533 $ 627,471 $ 608,878 ROATCE 16.00 % 8.03 % 13.86 % 12.49 % 16.39 % 15.89 % 17.31 % 16.49 % 11.47 % Adjusted ROATCE 16.50 15.38 14.27 12.77 13.97 15.89 17.31 16.46 11.35 29 DOLLARS IN THOUSANDS, UNAUDITED RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
ORIGIN BANCORP, INC. _______ Calculation of ROATCE and Adjusted ROATCE, continued: 3Q20 2Q20 1Q20 4Q19 3Q19 2Q19 1Q19 4Q18 3Q18 2Q18 Net income $ 13,095 $ 4,957 $ 753 $ 12,827 $ 14,617 $ 12,283 $ 14,155 $ 13,178 $ 12,318 $ 12,702 Divided by number of days in the quarter 92 92 91 90 92 91 90 92 92 91 Multiplied by number of days in the year 365 365 365 365 365 365 365 365 365 365 Annualized net income $ 51,953 $ 19,666 $ 3,020 $ 52,021 $ 57,991 $ 49,267 $ 57,406 $ 52,282 $ 48,870 $ 50,948 Total average common stockholders’ equity $ 629,533 $ 617,898 $ 611,162 $ 597,925 $ 588,504 $ 576,761 $ 560,091 $ 541,205 $ 534,250 $ 512,381 Less: average goodwill 26,741 26,741 26,741 26,741 26,741 26,741 26,741 26,741 30,173 22,192 Less: average other intangible assets, net 4,128 4,395 4,690 4,990 5,288 4,308 5,981 6,353 3,318 1,982 Average tangible common equity $ 598,664 $ 586,762 $ 579,731 $ 566,194 $ 556,475 $ 545,712 $ 527,369 $ 508,111 $ 500,759 $ 488,207 Adjusted net income $ 12,857 $ 4,957 $ 461 $ 12,827 $ 13,782 $ 11,993 $ 14,155 $ 13,184 $ 12,318 $ 11,140 Divided by number of days in the quarter 92 91 91 92 92 91 90 92 92 91 Multiplied by number of days in the year 366 366 366 365 365 365 365 365 365 365 Annualized adjusted net income $ 51,149 $ 19,937 $ 1,854 $ 50,890 $ 54,679 $ 48,104 $ 57,406 $ 52,306 $ 48,870 $ 44,682 ROATCE 8.68 % 3.35 % 0.52 % 9.19 % 10.42 % 9.03 % 10.89 % 10.29 % 9.76 % 10.44 % Adjusted ROATCE 8.54 3.40 0.32 8.99 9.83 8.81 10.89 10.29 9.76 9.15 30 DOLLARS IN THOUSANDS, UNAUDITED RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES DOLLARS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS, UNAUDITED Calculation of Core Efficiency Ratio: 4Q22 3Q22 2Q22 1Q22 4Q21 3Q21 2Q21 1Q21 4Q20 3Q20 Total noninterest expense $ 57,254 $ 56,241 $ 44,150 $ 42,774 $ 40,346 $ 39,165 $ 37,832 $ 39,436 $ 38,884 $ 38,734 Less: insurance and mortgage noninterest expense 8,031 8,479 8,397 8,626 6,580 6,688 6,964 7,252 7,195 7,746 Less: merger and acquisition expense 1,179 3,614 807 571 — — — — — — Less: early termination of LT FHLB advance — — — — — — — 1,613 — — Adjusted total noninterest expense 48,044 44,148 34,946 33,577 33,766 32,477 30,868 30,571 31,689 30,988 Net interest income 84,749 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 1,376 1,208 1,082 875 946 1,048 979 1,003 1,236 1,125 Add: Total noninterest income 13,429 13,723 14,216 15,906 16,701 15,923 12,438 17,131 15,381 18,051 Less: insurance and mortgage noninterest income 6,255 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 — — — — 5,213 — — — — — Less: gain on sale of securities, net — 1,664 — — 75 — 5 1,668 225 301 Adjusted total revenue $ 90,547 $ 84,637 $ 64,591 $ 56,981 $ 58,964 $ 61,237 $ 59,931 $ 61,351 $ 56,413 $ 54,501 Efficiency Ratio 58.32 % 60.97 % 59.89 % 62.53 % 56.92 % 57.21 % 56.69 % 54.49 % 57.86 % 56.41 % Core Efficiency Ratio 53.06 52.16 54.10 58.93 57.27 53.03 51.51 49.83 56.17 56.86 2Q20 1Q20 4Q19 3Q19 2Q19 1Q19 4Q18 3Q18 2Q18 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: FDIC fund assessment benefit — — — (1,037) — — — — — Adjusted total noninterest expense 30,276 29,634 30,102 29,666 30,752 29,285 28,594 27,289 26,342 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 Add: 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(23) 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 Efficiency Ratio 58.47 % 65.69 % 66.53 % 60.98 % 68.51 % 65.97 % 66.52 % 69.06 % 66.99 % Core Efficiency Ratio 60.15 62.71 62.21 58.85 65.38 62.09 60.22 62.81 63.51 *Please see slide 35 for all footnote references included above. 31 ORIGIN BANCORP, INC. _______
ORIGIN BANCORP, INC. _______ Year Ended December 31, 2022 December 31, 2021 Calculation of adjusted net income: DOLLARS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS, UNAUDITED Net interest income after provision for credit losses $ 250,587 $ 227,017 Add: CECL provision on non-PCD loans 14,890 — Adjusted net interest income after provision for credit losses $ 265,477 $ 227,017 Total noninterest income $ 57,274 $ 62,193 Less: GNMA MSR impairment (1,950) — Less: Gain on sales of securities, net 1,664 1,748 Less: Gain on fair value of the Lincoln Agency — 5,213 Adjusted total noninterest income $ 57,560 $ 55,232 Total noninterest expense $ 200,419 $ 156,779 Less: Merger and acquisition expense 6,171 — Adjusted total noninterest expense $ 194,248 $ 156,779 Income tax expense $ 19,727 $ 23,885 Add: Income tax expense 4,483 (1,462) Adjusted income tax expense $ 24,210 $ 22,423 Net income $ 87,715 $ 108,546 Adjusted Net Income $ 104,579 $ 103,047 Calculation of adjusted PTPP earnings: Provision for credit losses $ 24,691 $ (10,765) Less: CECL provision for non-PCD loans 14,890 — Adjusted provision for credit losses $ 9,801 $ (10,765) Adjusted Net income $ 104,579 $ 103,047 Add: adjusted provision for credit losses 9,801 (10,765) Add: adjusted income tax expense 24,210 22,423 Adjusted PTPP earnings $ 138,590 $ 114,705 32 RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
ORIGIN BANCORP, INC. _______ Year Ended December 31, 2022 December 31, 2021 Calculation of adjusted dilutive EPS: DOLLARS IN THOUSANDS, UNAUDITED Adjusted Net Income $ 104,579 $ 103,047 Denominator: Weighted average diluted common shares outstanding 26,760,592 23,608,586 Diluted earnings per share $ 3.28 $ 4.60 Adjusted diluted earnings per share 3.91 4.36 Calculation of adjusted ROAA and adjusted ROAE: Adjusted Net Income $ 104,579 $ 103,047 Divided by total average assets 8,686,231 7,470,927 ROAA 1.01 % 1.45 % Adjusted ROAA 1.20 1.38 Divided by total average stockholders' equity $ 811,483 $ 687,648 ROAE 10.81 % 15.79 % Adjusted ROAE 12.89 14.99 Calculation of adjusted PTPP ROAA and ROAE: Adjusted PTPP Earnings $ 138,590 $ 114,705 Divided by total average assets 8,686,231 7,470,927 Adjusted PTPP ROAA 1.60 % 1.54 % Divided by total average stockholders' equity $ 811,483 $ 687,648 Adjusted PTPP ROAE 17.08 % 16.68 % 33 RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
ORIGIN BANCORP, INC. _______ Year Ended December 31, 2022 December 31, 2021 Calculation of ROATCE and Adjusted ROATCE: DOLLARS IN THOUSANDS, UNAUDITED Net income $ 87,715 $ 108,546 Adjusted net income 104,579 103,047 Total average common stockholders’ equity 811,483 687,648 Less: average goodwill 74,205 26,762 Less: average other intangible assets, net 31,479 3,363 Average tangible common equity $ 705,799 $ 657,523 ROATCE 12.43 % 16.51 % Adjusted ROATCE 14.82 15.67 Calculation of core efficiency ratio: Total noninterest expense $ 200,419 $ 156,779 Less: Insurance and mortgage noninterest expense 33,533 27,484 Less: Merger and acquisition expense 6,171 — Less: Other noninterest expense — 1,613 Adjusted total expense $ 160,715 $ 127,682 Net interest income $ 275,278 $ 216,252 Less: Insurance and mortgage net interest income 4,541 3,975 Add: Noninterest income 57,274 62,193 Less: Insurance and mortgage noninterest income 29,591 26,025 Less: Gain on sale of securities, net 1,664 1,748 Less: Gain on fair value of the Lincoln Agency — 5,213 Adjusted total revenue $ 296,756 $ 241,484 GAAP efficiency ratio 60.27 % 56.31 % Core efficiency ratio 54.16 52.87 34 RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
ORIGIN BANCORP, INC. _______ 35 PRESENTATION NOTES (1) Excludes mortgage warehouse loans. (2) East Texas represents the nine branches acquired in the BTH merger predominately centered in Gregg, Panola, Rusk, Smith, and Wood counties. (3) As used in this presentation,adjusted net income, adjusted PTPP, adjusted diluted EPS, adjusted ROAA, adjusted PTPP ROAA, adjusted ROAE, adjusted PTPP ROAE, tangible book value per common share, adjusted tangible book value per common share, ROATCE, adjusted ROATCE 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, see slides 22-34 of this presentation. (4) NIM - FTE, adjusted, is calculated for the quarter ended December 31, 2022 and September 30, 2022, by removing the net purchase accounting 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. (5) A decline in accumulated other comprehensive loss during the year-to-date period ended December 31, 2022, negatively impacted total stockholders' equity, tangible common equity, book value per common share and tangible book value per common share, primarily due to the steepening of the short end of the yield curve that occurred during the first three quarters of 2022 and its impact on our investment portfolio. (6) The ALCL to total LHFI, adjusted is calculated at December 31, 2022 and 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. (7) Total LHFI, Adjusted excludes mortgage warehouse loans for all periods presented and PPP loans for periods prior to September 30, 2022. (8) Annualized. (9) A decline in accumulated other comprehensive loss during the YTD period ended December 31, 2022, negatively impacted total stockholders' equity, tangible common equity and ROATCE, primarily due to the steepening of the short end of the yield curve that occurred during the first three quarters of 2022 and its impact on our investment portfolio. (10) OBNK and KBW Nasdaq cumulative total shareholder return assumes $100 Invested on December 31, 1996, and any dividends are reinvested. Data for OBNK cumulative total shareholder return prior to May 9, 2018, is based upon private stock transactions and is not reflective of open market trades. (11) Excludes mortgage warehouse loans and, for all periods prior to 3Q22, PPP loans. (12) Periods prior to 2022 exclude PPP loans. (13) Does not include loans held for sale. (14) PPP loans are immaterial at 3Q22 and 4Q22 and are included in C&I for these periods. (15) PPP loans are immaterial for the quarters ended September 30, 2022, and December 31, 2022; therefore, metrics for 3Q22 and 4Q22 are calculated using unadjusted LHFI. (16) 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. (17) Yield on LHFI excl. PPP loans and purchase accounting adjustments ("PAA") reflects the exclusion of PPP loans for periods prior to 3Q22 and the exclusion of PAA for 4Q22 and 3Q22. (18) Net interest income excl. MW LOC, adjusted, and NIM (FTE), adjusted, excludes PPP income from periods prior to 3Q22, and PAA net accretion for 4Q22 and 3Q22. (19) Mortgage banking revenue for 3Q22 was adjusted for the $1.95 million impairment on the GNMA MSR portfolio. (20) 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. (21) December 31, 2022, dollars and ratios are estimated. (22) 3Q22 does not include BTH Bank, which elected the Community Bank Leverage Ratio. (23) Other noninterest income represents a $316,000 payout on a BOLI life insurance policy during 1Q20 and a $367,000 and $2.0 million valuation adjustment on a non-marketable equity security during 2Q19 and 2Q18, respectively.
Exhibit 99.3
FOR IMMEDIATE RELEASE
January 25, 2023
Origin Bancorp, Inc. Announces Declaration of Quarterly Cash Dividend
RUSTON, LOUISIANA (January 25, 2023) - Origin Bancorp, Inc. (Nasdaq: OBNK) ("Origin"), the holding company for Origin Bank, today announced that on January 25, 2023, 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 February 28, 2023, to stockholders of record as of the close of business on February 15, 2023.
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; 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; the COVID-19 pandemic and the impact of varying governmental responses that affect Origin's customers and the economies where they operate; 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