Origin Bancorp, Inc. · NYSE:OBK
Origin Bancorp — Q2 2018 Earnings Presentation
15 slides from Origin Bancorp's earnings presentation, Jul 25, 2018
Slide 1: 2Q Twenty18 Earnings Presentation
2Q 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’s future financial performance, business and g
Slide 3: Today's Presenters
TODAY’S PRESENTERS DRAKE MILLS Chairman, President & CEO Has served as President of Origin Bancorp, Inc. since 1998 and as CEO since 2008. Was elected Chairman of the Board of Directors in 2012. STEVE BROLLY Chief Financial Officer Has served as Chief Financial Officer of Origin Bancorp, Inc. since
Slide 4: Company Snapshot and Financial Highlights
COMPANY SNAPSHOT Origin Bank was founded in 1912 OBNK is headquartered in Ruston, LA 8 19 5 41 banking centers operating across Texas, Louisiana & Mississippi Strong commercial focus with 39% C&I And 43% CRE lending mix across our footprint 9 FINANCIAL HIGHLIGHTS Q2 2018 DOLLARS IN MILLIONS TOTAL AS
Slide 5: Second Quarter Financial Highlights
SECOND QUARTER FINANCIAL HIGHLIGHTS 2018 HIGHLIGHTS DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA 2018Q2 2018Q1 2017Q2 Linked Q Δ YoY Q Δ Balance Sheet Net interest income was at its Total Loans Held For Investment $ 3,372,096 $ 3,245,992 $ 3,158,310 3.9% 6.8% highest level ever for our company, Total
Slide 6: Balance Sheet: Repositioned for Growth & Profitability
BALANCE SHEET AVERAGE INTEREST EARNING ASSETS & NIM (FTE) REPOSITIONED FOR GROWTH & PROFITABILITY DOLLARS IN MILLIONS $4,100 4.00% $4,055 3.90% Consistent increase in yields $4,000 on earning assets $3,897 3.80% $3,900 Strong rebound in average loan $3,850 balances throughout 2017 and 3.74% 3.70% $3
Slide 7: Asset Sensitivity - % Change in Net Interest Income
ASSET SENSITIVITY - % CHANGE IN NET INTEREST INCOME ASSET SENSITIVE (12/31/17) BALANCE SHEET 33.1% 24.9% Well positioned to benefit from a rising rate environment 16.7% Substantial growth in rate 8.4% sensitive assets over the last 0.0% five years Pricing moved above floors on -8.6% the majority of
Slide 8: Diversified & Growing Revenue Distribution
DIVERSIFIED & GROWING REVENUE DISTRIBUTION – 2018Q2 REVENUE STREAMS Insurance Other Commission & Fee 6 % Income 4 % Meaningful noninterest income Mortgage Banking supplements spread related Revenue 5 % revenue Services Charges & Fees 7 % Comprehensive product suite delivered with high quality, respo
Slide 9: Ability to Leverage Operating Infrastructure
ABILITY TO LEVERAGE OPERATING EFFICIENCY INFRASTRUCTURE 6.00% 110.00% Cost-effective, centralized back office functions provided 103.94% 105.00% through operations centered in 5.00% North Louisiana 100.00% Infrastructure exists to support 95.00% significant growth in assets at 4.00% 3.92% increasing
Slide 10: Growing Core Deposit Franchise
GROWING CORE DEPOSIT DEPOSIT COMPOSITION – 2018Q2 FRANCHISE DOLLARS IN MILLIONS Brokered Deposits Continued success in growing 7% core deposits, especially Noninterest Bearing Demand CDs noninterest-bearing deposits, 26% 19% while significantly growing the balance sheet Savings Interest Bearing 4% L
Slide 11: Diversified Commercial Loan Composition
DIVERSIFIED COMMERCIAL LOAN COMPOSITION – 2018Q2 LOAN PORTFOLIO DOLLARS IN MILLIONS Focus on lending to middle Other market and small business, and 1% their owners and executives Commercial loans represent Residential 17% cumulative 82% of portfolio as C&I 31% of 6/30/18 Total C&I C&D 39% 11% .Incre
Slide 12: Underwriting & Credit Culture
UNDERWRITING & CREDIT NPLs / LOANS (1) CULTURE Excellent track record of strong credit quality across core 1.13% commercial lending portfolio 0.83% 0.76% 0.73% 0.79% Seasoned lenders with strong credit backgrounds and significant in-market experience Centralized underwriting for all 2017Q2 2017Q3 20
Slide 13: Strong Capital
STRONG CAPITAL TOTAL RISK-BASED CAPITAL POSITION DOLLARS IN MILLIONS $542 $36 $470 $472 Robust capital levels with $423 $47 $39 opportunity for deployment $44 through organic growth and strategic acquisitions $505 $423 $433 IPO net proceeds partially used $379 to redeem SBLF preferred stock 2015 201
Slide 14: Increase scale across franchise and Improve operation efficiency and particularly in Houston increase profitability
Increase scale across franchise and Improve operation efficiency and particularly in Houston increase profitability Focused effort to improve margin and risk-adjusted returns Grow client base and continue Continue our disciplined approach Capturing market share to organic loan and deposit growth Suc
Slide 15: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures DOLLARS IN THOUSANDS, EXCEPT SHARE AND PER SHARE FIGURES 2018Q2 2018Q1 2017Q4 2017Q3 2017Q2 Calculation of Tangible Common Equity: Total Stockholders' Equity $ 519,356 $ 462,824 $ 455,342 $ 452,904 $ 457,555 Less: Preferred Stock, Series SBLF - 48,260 48