Origin Bancorp, Inc. · NYSE:OBK
Origin Bancorp — Q4 2018 Earnings Presentation
16 slides from Origin Bancorp's earnings presentation, Jan 23, 2019
Slide 1: 4Q and Full Year 2018 Earnings Presentation
4Q AND FULL YEAR TWENTY18 EARNINGS PRESENTATION
Slide 2: Forward-Looking Statements and Non-GAAP Information
Forward-Looking Statements and Non-GAAP Information This presentation contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include information regarding Origin Bancorp, Inc.'s ("Origin" or the "Company") fu
Slide 3: Company Snapshot
COMPANY SNAPSHOT • Origin Bank was founded in 1912 • OBNK is headquartered in Ruston, LA 8 • 41 banking centers operating across Texas, 19 5 Louisiana & Mississippi • Strong commercial focus with 39% C&I and 43% CRE lending mix across our footprint FINANCIAL HIGHLIGHTS 9 2018 Q4 DOLLARS IN MILLIONS
Slide 4: Fourth Quarter Financial Highlights
FOURTH QUARTER FINANCIAL HIGHLIGHTS 2018 HIGHLIGHTS DOLLARS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS Linked • Net interest income was at a historic 2018Q4 2018Q3 2017Q4 Q Δ YoY Δ high for our company, increasing by Balance Sheet $2.6 million, or 6.5%, over the Total Loans Held For Investment $ 3,789,1
Slide 5: Full Year Financial Highlights
FULL YEAR FINANCIAL HIGHLIGHTS 2018 HIGHLIGHTS DOLLARS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS Years Ended • Successfully completed the Initial Balance Sheet December 31, 2018 December 31, 2017 YoY Δ Public Offering of the Company's Total Loans Held For Investment $ 3,789,105 $ 3,241,031 16.9 % commo
Slide 6: Balance Sheet Well-Positioned for Growth & Profitability
BALANCE SHEET WELL- AVERAGE INTEREST EARNING ASSETS & NIM (FTE) POSITIONED FOR DOLLARS IN MILLIONS 4.00% $4,433 ) $ GROWTH & PROFITABILITY ( S ) 4,400 T E E T F S ( 3.90% $4,230 S N A I G • Consistent increase in yields G 4,200 N R 3.82% I A on interest earning assets $4,055 N M R A T 3.80% E S 3.76
Slide 7: Asset Sensitivity - % Change in Net Interest Income
ASSET SENSITIVITY - % CHANGE IN NET INTEREST INCOME (12/31/18) ASSET SENSITIVE BALANCE SHEET 19.2% 14.5% 9.7% 4.9% • Well-positioned to benefit —% from a rising rate environment (6.2)% • Substantial growth in rate (15.3)% sensitive assets over the last five years -200 bps -100 bps 0 bps 100 bps 200
Slide 8: Net Revenue Distribution – Diversified & Growing Revenue Streams
NET REVENUE DISTRIBUTION – 2018Q4 DIVERSIFIED & GROWING Service Charges & Fees: REVENUE STREAMS 6% Mortgage Banking Revenue: 4% • Meaningful noninterest income Insurance Commission & Fee Income: supplements interest related 5% revenue Other: 5% • Comprehensive product suite delivered with high quali
Slide 9: Ability to Leverage Infrastructure
ABILITY TO LEVERAGE OPERATING EFFICIENCY INFRASTRUCTURE 90.00% 4.00% • Cost-effective, centralized back office functions are performed in our North 85.00% Louisiana operations center 3.04% 3.00% 2.94% 2.88% 2.93% 3.00% • Infrastructure exists to support significant asset growth at 80.00% S increasin
Slide 10: Our Markets
OUR MARKETS AVERAGE DEPOSITS & DEPOSIT COST DOLLARS IN MILLIONS $3,658 150 bps $3,458 • DIVERSE GEOGRAPHIC $3,235 $3,337 125 bps FOOTPRINT $2,814 t s 100 bps o C t • Attractive combination of stable, low i 75 bps s o cost markets and markets p e 50 bps experiencing metropolitan growth D 25 bps • Exp
Slide 11: Diversified Commercial Loan Composition – 2018Q4
DIVERSIFIED COMMERCIAL LOAN COMPOSITION – 2018Q4 LOAN PORTFOLIO DOLLARS IN MILLIONS • Focus on commercial lending Other: 1% to middle market and small businesses as well as their owners and executives C&D: 11% Residential: Owner Occupied • Commercial loans represent 17% CRE: 12% cumulative 82% of po
Slide 12: Deposit Composition – Growing Core Deposit Franchise
DEPOSIT COMPOSITION – 2018Q4 GROWING CORE DEPOSIT FRANCHISE Savings: 4% Brokered: 9% • Continued success in growing Noninterest- core deposits, especially bearing noninterest-bearing deposits. demand: 25% Time deposits: 21% Interest- • Low cost of deposits driven by bearing legacy North Louisiana de
Slide 13: Underwriting & Credit Culture
UNDERWRITING & CREDIT NPLs / LOANS HFI CULTURE 0.83% 0.84% 0.79% • Excellent track record of 0.73% 0.74% credit quality across core commercial lending portfolio • Seasoned lenders with strong credit backgrounds and significant experience in our markets 2017Q4 2018Q1 2018Q2 2018Q3 2018Q4 • Centralize
Slide 14: Strong Capital Position
STRONG CAPITAL TOTAL RISK-BASED CAPITAL POSITION DOLLARS IN MILLIONS $35 $47 $39 • Robust capital levels with $44 opportunity for deployment through organic growth and $529 $433 strategic acquisitions $379 $423 • IPO net proceeds partially used to redeem SBLF 2015 2016 2017 2018 preferred stock Tier
Slide 15: Strategic Priorities
Increase scale across the franchise, and Improve operational efficiency and particularly in Houston increase profitability Focused effort to improve margin and risk-adjusted returns Grow client base and continue capturing market share Continue our disciplined approach to organic loan and deposit gro
Slide 16: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures DOLLARS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS 2018Q4 2018Q3 2018Q2 2018Q1 2017Q4 Calculation of Tangible Common Equity: Total Stockholders' Equity $ 549,779 $ 531,919 $ 519,356 $ 462,824 $ 455,342 Less: Preferred Stock - Series SBLF — — — 48,260 48,260