Origin Bancorp, Inc. · NYSE:OBK
Origin Bancorp — Investor Presentation (July 2019)
20 slides from Origin Bancorp's investor presentation, Jul 29, 2019
Slide 1: 2Q Twenty19 Overview Presentation
2Q TWENTY19 OVERVIEW 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: Culture as a differentiator
At Origin, we believe our culture is a differentiator across our footprint. It defines all that we do and permeates throughout our organization. We believe it allows us to attract the best bankers in our markets, and it drives our philosophy of relationship-based banking. From our mission, vision, a
Slide 4: Company Snapshot and Financial Highlights
COMPANY SNAPSHOT • Origin Bank was founded in 1912 • OBNK is headquartered in Ruston, LA 9 • 43 banking centers operating across Texas, 19 6 Louisiana & Mississippi • Strong commercial focus with 40% C&I and 43% CRE lending mix across our footprint FINANCIAL HIGHLIGHTS 9 2Q2019 DOLLARS IN MILLIONS T
Slide 5: Second Quarter Financial Highlights
SECOND QUARTER FINANCIAL HIGHLIGHTS 2019 HIGHLIGHTS DOLLARS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS Linked 2Q2019 1Q2019 2Q2018 Q Δ YoY Δ • Net interest income increased by Balance Sheet $943,000, or 2.2%, over the previous Total Loans Held For Investment $ 3,984,597 $ 3,838,343 $ 3,372,096 3.8 % 18.
Slide 6: Operating Noninterest Income
OPERATING (1) NONINTEREST INCOME Normalized Noninterest Income Composition DOLLARS IN THOUSANDS $12,000 • Service charges and fees - $11,055 continued steady increases $10,693 $1,332 • Mortgage banking revenue - $10,000 $1,261 increased trend due to continued conversion to a retail platform $3,036 $
Slide 7: Noninterest Income & Noninterest Expense
NONINTEREST INCOME & Reconciliation of Normalized NONINTEREST EXPENSE Noninterest Income & Noninterest Expense DOLLARS IN THOUSANDS • Excluded from noninterest income and noninterest expense are 2Q2019 1Q2019 infrequent items that can produce Noninterest Income volatility Noninterest Income $ 11,176
Slide 8: Growth & Profitability
HISTORICAL AVERAGE INTEREST EARNING ASSETS & NIM (FTE) GROWTH & PROFITABILITY DOLLARS IN MILLIONS 4.70% $4,800 $4,719 ) $ ( S ) T E E • Consistent increase in average T $4,545 $4,600 F S ( 4.40% S N interest-earning assets A I $4,433 G G N R $4,400 I A N M • Strong growth in average loan R A T 4.10%
Slide 9: Net Interest Income and Net Interest Margin
NET INTEREST INCOME Net Interest Income & Net Interest Margin DOLLARS IN THOUSANDS $45,000 5.00% $42,969 $42,026 • Net interest income was $43.0 $40,000 million for the quarter ended June $37,170 4.50% e n i m 30, 2019, reflecting an increase of g r o a c $35,000 n M $943,000, or 2.2% compared to I
Slide 10: Ability to Leverage Infrastructure and Operating Efficiency
ABILITY TO LEVERAGE OPERATING EFFICIENCY INFRASTRUCTURE 110.00% 3.50% • Cost-effective, centralized back office functions are performed in our North Louisiana operations 3.19% center 2.97% 2.95% 2.94% 2.95% 3.00% • Infrastructure exists to support asset growth and increasing 90.00% profitability S T
Slide 11: Diversified & Growing Revenue Streams
DIVERSIFIED & GROWING NET REVENUE DISTRIBUTION – 2Q2019 REVENUE STREAMS Service Charges & Fees: 6% Mortgage Banking Revenue: 6% • Meaningful noninterest income supplements interest-related Insurance Commission & Fee Income: 6% revenue Other: 3% • Comprehensive product suite delivered with high quali
Slide 12: Our Markets
OUR MARKETS AVERAGE DEPOSITS & DEPOSIT COST DOLLARS IN MILLIONS 200 bps $3,870 $3,658 $3,337 $3,458 • DIVERSE GEOGRAPHIC 170 bps $3,235 t s FOOTPRINT o 140 bps C t i 110 bps s o • Attractive combination of stable, p e 80 bps low cost markets and markets D experiencing metropolitan growth 50 bps 20 b
Slide 13: Diversified Commercial Loan Composition
DIVERSIFIED COMMERCIAL LOAN COMPOSITION – 2Q2019 LOAN PORTFOLIO DOLLARS IN MILLIONS • Focus on commercial lending to Other: 1% middle market and small businesses as well as their owners and executives C&D: 13% • Commercial loans represented an Residential: 16% Owner Occupied aggregate of 83% of our
Slide 14: Growing Core Deposit Franchise
GROWING CORE DEPOSIT DEPOSIT COMPOSITION – 2Q2019 FRANCHISE Savings: 4% Brokered: 4% • Continued success in growing Noninterest- core deposits, especially bearing Time deposits: demand: 26% noninterest-bearing deposits 22% Interest- • Low cost deposits driven by bearing legacy North Louisiana franch
Slide 15: Liquidity Measures
LIQUIDITY MEASURES Total Loans / Total Deposits 104.88% 106% • A key priority for our markets is to 101.54% deliver strong, high quality loan 99.55% 100% growth while focusing on core 97.98% deposit growth. 93.52% 94% • Stable deposit sources are primarily used to fund our loans 88% held for investm
Slide 16: Underwriting & Credit Culture
UNDERWRITING & CREDIT NPLs(1) / LOANS HFI CULTURE 0.84% 0.79% 0.79% • Excellent track record of credit 0.74% 0.76% quality across core commercial lending portfolio • Seasoned lenders with strong credit backgrounds and significant experience in our markets 2Q2018 3Q2018 4Q2018 1Q2019 2Q2019 • Central
Slide 17: Strong Capital Position
STRONG CAPITAL POSITION TOTAL RISK-BASED CAPITAL DOLLARS IN MILLIONS $39 $35 • Robust capital levels with $47 $39 opportunity for deployment $44 through organic growth and strategic acquisitions $529 $556 $433 $379 $423 • Management focused on effectively deploying capital to enhance returns 2015 20
Slide 18: Strategic priorities
Increase scale across the franchise, and particularly in Houston Improve operational efficiency and increase profitability Focused effort to improve margin and risk-adjusted returns Grow client base and continue capturing Continue our disciplined approach to market share organic loan and deposit gro
Slide 19: Key Highlights
KEY HIGHLIGHTS EXPERIENCED LEADERSHIP AND STRONG INSIDER OWNERSHIP TRACK RECORD OF ORGANIC GROWTH ~@) arreactive Foorrrint @ sTRONG core DEPOSIT FRANCHISE © piversiFieD REVENUE STREAMS r PROVEN CREDIT CULTURE ACROSS CORE LOAN PORTFOLIO © POTENTIAL OPPORTUNISTIC M&A
Slide 20: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures DOLLARS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS 2Q2019 1Q2019 4Q2018 3Q2018 2Q2018 Calculation of Tangible Common Equity: Total Common Stockholders' Equity $ 584,293 $ 568,122 $ 549,779 $ 531,919 $ 519,356 Less: Goodwill and Other Intangible Assets, Net 3