Origin Bancorp, Inc. · NYSE:OBK
Origin Bancorp — Q1 2020 Earnings Presentation
24 slides from Origin Bancorp's earnings presentation, Apr 22, 2020
Slide 1: Origin Bancorp, Inc. 1Q Twenty20 Investor Presentation
ORIGIN BANCORP, INC. 1Q TWENTY20 INVESTOR PRESENTATION ORIGIN BANCORP, INC. _______
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: Financial Results - First Quarter 2020
FINANCIAL RESULTS - FIRST QUARTER 2020 DOLLARS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS March 31 December 31 March 31 Linked Qtr Linked Qtr YoY YoY Balance Sheet 2020 2019 2019 $ Δ % Δ $ Δ % Δ Total Loans Held For Investment ("LHFI") $ 4,481,185 $ 4,143,195 $ 3,838,343 $ 337,990 8.2 % $ 642,842 16.7 %
Slide 4: Our LA Markets COVID-19 Cases
Our LA As of 4/20/2020 Markets* State of LA Cases Reported 2,195 24,523 Deaths Reported 106 1,328 Source: Louisiana Department of Health * Our LA markets include Caddo, Bossier, Lincoln, Union, Ouachita and Morehouse parishes. 4 ORIGIN BANCORP, INC. _______
Slide 5: COVID-Response
COVID - 19 RESPONSE* • In addition to having our employees work from home, our drive- thus remain open and our employees are accepting one-on-one “Challenging times create the appointments with customers on an as needed basis opportunity for our collective character, core values and vision to make a
Slide 6: Supporting Our Customers
SUPPORTING OUR CUSTOMERS DOLLARS IN THOUSANDS COVID-19 LHFI Forbearances at 04/15/2020 SBA Paycheck Protection Program Activity Total Loan Avg Loan # of Total Loan Avg Loan # of Industry ($) ($) Loans Industry ($) ($) Loans Real estate rental/leasing $230,489 $674 342 Professional Services $57,830 $
Slide 7: Well Diversified Loan Portfolio
WELL DIVERSIFIED LOAN PORTFOLIO DOLLARS IN MILLIONS Loan Composition(1) at 03/31/2020: $4,481 C&I, Owner Occupied C&D and CRE, Mtg. Warehouse: $2,474 Mtg. Warehouse: 10% Finance & Insurance: 6% Real Estate & Transportation: 3% Construction: 10% Retail Shopping: 3% Owner Banks: 3% Occupied Commercial
Slide 8: Deep Dive - Selected Sectors
DEEP DIVE - SELECTED SECTORS LHFI at 03/31/2020 All Other LHFI: 77.8% • LHFI ended the quarter at $4.48 billion, an increase of $338.0 million, or 8.2%, compared to the end of 2019. • Six sectors analyzed account for 22.2% Hotels: 1.4% of total LHFI. Energy: 1.9% Transportation: 2.7% • Approximately
Slide 9: Healthcare Sectors
HEALTHCARE SECTORS Healthcare Portfolio at 03/31/2020 All Other Healthcare: 9% Healthcare Stats: Offices of Assisted Healthcare Living • Balance represents 8.5% of total LHFI Professionals: Facilities: 31% 14% • Healthcare Sector DSCR: 1.51x $381.8M • Healthcare Sector LTV: 41% CRE Healthcare: 17% N
Slide 10: Retail Shopping Sectors
RETAIL SHOPPING SECTORS Retail Shopping Portfolio at 03/31/2020 Retail Shopping: 13% Retail Shopping Stats: • Balance represents 4.7% of total LHFI • Retail shopping sector DSCR: 1.41x • Retail shopping sector LTV: 36% CRE Retail $212.9M Stores: 28% National Credit Tenant: 59% Retail Shopping Sub-Se
Slide 11: Restaurant Sectors
RESTAURANT SECTORS Restaurant Portfolio at 03/31/2020 Restaurant Stats: Limited-Service Restaurant: 21% • Balance represents 3.0% of total LHFI Full Services • Restaurant sector DSCR: 1.40x Restaurant: $132.4M 43% • Restaurant sector LTV: 54% • Restaurant sector past due: 0% • Restaurant sector NPL:
Slide 12: Transportation Sectors
TRANSPORTATION SECTORS Transportation Portfolio at 03/31/2020 Airlines & Aircraft Transportation Stats: Operations: 17% • Balance represents 2.7% of total LHFI Trucking & All Other • Transportation sector DSCR: 4.11x Transportation: 41% $119.5M • Transportation sector LTV: 56% Barge Service: 42% Tra
Slide 13: Energy Sectors
ENERGY SECTORS Energy Portfolio at 03/31/2020 Midstream: 15% Energy Stats: • Balance represents 1.9% of total LHFI • No Exploration & Production lending exposure $82.8M • Energy sector DSCR: 12.36x • Energy sector LTV: 78% Services: 85% Energy Sub-Sectors # of Total Outstanding Avg. Loan Allowance W
Slide 14: Hotel Sectors
HOTEL SECTORS Hotel Portfolio at 03/31/2020 Bed-and-Breakfast Inns: 2% Boutique & Independent: 6% Hotel Stats: IHG: 5% • Balance represents 1.4% of total LHFI Hilton: 30% • Hotel sector DSCR: 1.40x Choice: 12% • Hotel sector LTV: 41% $63.3M • Hotel sector past due: 0% Hyatt: 18% • Hotel sector NPL:
Slide 15: Asset Quality Trends
ASSET QUALITY TRENDS LHFI 1.93% 1.92% 1.65% 1.57% 1.67% 1.14% 0.99% 0.79% 0.76% 0.80% 0.75% 0.72% 0.75% 0.72% 0.74% 0.29% 0.26% 0.11% (0.06)% 0.07% 1Q2019 2Q2019 3Q2019 4Q2019 1Q2020 Nonperforming LHFI / LHFI Past due LHFI / LHFI Net Charge-Offs / Average LHFI (annualized) Classified Loans / LHFI CE
Slide 16: Net Interest Income and NIM Trends
NET INTEREST INCOME AND NIM TRENDS DOLLARS IN THOUSANDS • Net interest income decreased $1.3 million in 1Q2020 from 4Q2019, Yield on LHFI and increased $784 thousand in1Q2020 from 1Q2019. • Asset sensitive balance sheet lead to quarterly NIM compression of 5.50% 5.50% 14 bps in 1Q2020 from 4Q2019. 5
Slide 17: Asset Sensitive Profile
ASSET SENSITIVE PROFILE Interest Rate Shock Profile (03/31/2020) 22.2% 16.2% 10.9% 9.8% 7.3% 5.3% 6.4% 3.8% —% (2.8)% (4.9)% -100 bps 0 bps 100 bps 200 bps 300 bps 400 bps % Change in NII % Change in EVE LHFI: Fixed \ Variable (by Index) at 03/31/2020 Other indices: 1% • Variable rate LHFI make up 5
Slide 18: Net Revenue Distribution
NET REVENUE DISTRIBUTION DOLLARS IN THOUSANDS Net Interest Income \ Noninterest Income Noninterest Income $12,880 $57,502 $53,630 $54,145 $54,913 $54,954 $12,144 $11,604 $1,614 $12,880 $11,176 $10,818 $1,692 $11,604 $11,176 $12,144 $10,818 $1,661 $1,281 $1,351 $1,392 $676 $511 $172 $151 $3,203 $3,03
Slide 19: Noninterest Expense Composition
NONINTEREST EXPENSE COMPOSITION DOLLARS IN THOUSANDS $37,095 $36,534 $36,097 $35,381 $35,064 • Improving trend in efficiency ratio, coupled with a decline in the ratio of NIE to average assets as a result of expense stabilization in 2020. $6,472 $6,786 $5,656 $6,444 $5,792 • Efficiency improvements
Slide 20: Deposits
DEPOSITS DOLLARS IN MILLIONS Average Deposits Loans & Deposits by State at 03/31/2020 Loans Deposits $4,325 $4,203 $3,899 $3,977 $3,842 $782 $803 $827 29% $821 $847 $162 $162 44% $168 $242 $319 14% $2,088 $2,283 $1,906 $1,818 $1,703 15% $1,150 $973 $1,018 $1,076 $1,098 57% 41% 1Q2019 2Q2019 3Q2019 4
Slide 21: Deposit Repricing and Strategy
DEPOSIT REPRICING AND STRATEGY DOLLARS IN MILLIONS Deposit Cost Trends (QTD Annualized) Time Deposit Repricing Schedule 2.13% 2.16% Maturity Balance WAR 2.04% 2.08% 1.98% 1.19% 1.16% 2Q2020 $153 1.96% 1.11% 1.04% 3Q2020 151 2.02 0.95% 4Q2020 142 1.88 0.92% 0.95% 0.82% 1Q2021 121 1.69 0.77% 0.80% 2Q2
Slide 22: Liquidity
LIQUIDITY Primary and Secondary Liquidity Sources (dollars in thousands) 1Q2020 4Q2019 Cash and Equivalents $560,179 $291,518 • Pledged more public deposits with FHLB Letters of Credit during 1Q2020, shifting away from pledging securities. Unpledged Investment Securities 451,336 235,295 • Drew down
Slide 23: Capital
CAPITAL Tier 1 Capital to Risk-Weighted Assets Total Capital to Risk-Weighted Assets Bank Level Company Level Bank Level Company Level 12.3% 12.1% 13.1% 13.0% 13.1% 13.4% 11.9% 11.7% 11.6% 11.6% 11.9% 12.7% 12.5% 12.5% 12.4% 12.8% 11.3% 11.1% 12.1% 10.7% (1) 1Q2019 2Q2019 3Q2019 4Q2019 1Q2020 1Q2019
Slide 24: Reconciliation of Non-GAAP Financial Measures
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES DOLLARS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS Calculation of Tangible Common Equity: 1Q2020 4Q2019 3Q2019 2Q2019 1Q2019 Total Common Stockholders' Equity $606,631 $599,262 $588,363 $584,293 $568,122 Less: Goodwill and Other Intangible Assets, Net 31,241