Origin Bancorp, Inc. · NYSE:OBK
Origin Bancorp — Q2 2024 Earnings Presentation
29 slides from Origin Bancorp's earnings presentation, Jul 25, 2024
Slide 1: Origin Bancorp, Inc. 2Q24 Investor Presentation
ORIGIN BANCORP, INC. 2Q TWENTY24 INVESTOR PRESENTATION
Slide 2: Forward-Looking Statements and Non-GAAP Measures
FORWARD-LOOKING STATEMENTS AND NON-GAAP MEASURES 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") futur
Slide 3: Deposits & Loans by State
16 18 6 9 * * 10 *Locations in Mobile, Alabama and Fort Walton Beach, Florida coming soon DOLLARS IN MILLIONS, UNAUDITED (1) (2) DEPOSITS & LOANS BY STATE Deposits (1) Loans (2) TEXAS Dallas/Fort Worth Houston East Texas Entry: 2008 Entry: 2013 Entry: 2022 Loans: $3,004 Loans: $1,980 Loans: $432 60%
Slide 4: Origin Strategically Invests in Texas & Southeast
ORIGIN STRATEGICALLY INVESTS IN TEXAS & SOUTHEAST THE MOST DYNAMIC GROWTH MARKETS IN THE COUNTRY TEXAS STRONG l 8th largest economy in the world NET MIGRATION INTO OUR MARKETS l #1 in jobs created in 2023 with 369,600 jobs added l Home to 55 fortune 500 company headquarters l Texas boasts the 2nd la
Slide 5: ORIGIN BANCORP, INC. _______
5 ORIGIN BANCORP, INC. _______
Slide 6: Performance Highlights At-a-Glance - Second Quarter 2024
PERFORMANCE HIGHLIGHTS AT-A-GLANCE - SECOND QUARTER 2024 DOLLARS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS UNAUDITED Key Performance Metrics 2Q24 1Q24 2Q24 Key Highlights Balance Sheet Total Loans Held for Investment ("LHFI") $ 7,959,171 $ 7,900,027 • Total LHFI were $7.96 billion at June 30, 2024, ref
Slide 7: Trending Key Measures
TRENDING KEY MEASURES UNAUDITED Net Income ($) Diluted EPS ($) Total LHFI ($) Total Deposits ($) DOLLARS IN THOUSANDS DOLLARS IN MILLIONS DOLLARS IN MILLIONS % 8% R 10.1 8,511 R 9. 7,959 CA G CAG 0.67 5,613 5,936 20,989 0.56 13,095 1Q 20 1Q 21 1Q 22 1Q 23 4Q20 4Q21 4Q22 4Q23 3Q21 3Q22 3Q23 24 1Q 20
Slide 8: Asset and Stockholders' Equity Growth 1997 - 2Q24
19 97 148 19 98 0 500 1,000 1,500 2,000 2,500 12 19 /31 99 /96 20 00 UNAUDITED 12 20 /31 01 /97 20 02 12 20 /31 03 DOLLARS IN MILLIONS /98 20 04 12 20 /31 05 /99 20 06 20 C 12 07 /31 /00 20 08 AG 12 20 /31 09 20 R1 /01 10 7 12 20 /31 11 /02 20 .2% 12 12 20 /31 13 Total Assets ($) /03 20 14 12 20 /31
Slide 9: Texas Growth Story
TEXAS GROWTH STORY UNAUDITED Texas Franchise Highlights Loan Trends by Texas Market(2) ($) DOLLARS IN MILLIONS • 35 locations throughout 10 counties including the 4th 28.6% and 5th largest MSAs in the United States.(7) CAGR 5,276 5,416 4,747 446 432 • Texas franchise represents 73% of LHFI(2) and 60
Slide 10: Loan Growth
LOAN GROWTH UNAUDITED LHFI Growth excluding MW LOC(8) ($) C&I and Owner Occupied CRE Growth(8) ($) DOLLARS IN MILLIONS DOLLARS IN MILLIONS 8,000 4,000 7,331 7,453 6,805 7,331 7,453 1,212 3,013 3,031 6,000 3,000 2,894 3,013 3,031 627 5,593 4,498 4,094 4,498 1,872 2,267 4,000 2,000 4,094 1,732 1,872 1
Slide 11: Well Diversified Loan Portfolio
(9) WELL DIVERSIFIED LOAN PORTFOLIO UNAUDITED Loan Composition at June 30, 2024: $7,959 million C&I, Owner Occupied CRE and MW LOC: $3,537 million Residential Real Finance & Insurance: 7% Estate - Single Real Estate & Construction: 7% Family & Consumer 18% MW LOC: 6% Commercial & Energy: 4% Industri
Slide 12: Credit Quality
CREDIT QUALITY UNAUDITED Asset Quality Trends (%) 0.95 0.83 1.49 1.11 1.05 1.07 0.51 0.85 0.44 0.42 0.39 0.34 0.42 0.26 0.27 0.10 0.14 0.10 0.13 0.15 2Q23 3Q23 4Q23 1Q24 2Q24 2Q23 3Q23 4Q23 1Q24 2Q24 Nonperforming LHFI / LHFI (%) Classified LHFI / Total LHFI (%) Past due LHFI / LHFI (%) Net Charge-O
Slide 13: CRE Office - Strength and Diversification
CRE OFFICE - STRENGTH AND DIVERSIFICATION NON-OWNER OCCUPIED (“NOO”), UNAUDITED Tenant Classification Key Portfolio Metrics DOLLARS IN MILLIONS National Credit DOLLARS IN THOUSANDS June 30, 2024 Tenant: 15% Medical: 25% Avg. Loan Size $ 2,336 Weighted Avg. LTV 59.19 % Past Due Loans / Loans — $373.8
Slide 14: Selected Sectors - Key Portfolio Metrics
SELECTED SECTORS - KEY PORTFOLIO METRICS DOLLARS IN THOUSANDS, UNAUDITED Multi-Family Real Estate June 30, 2024 + Hotel Retail Shopping Under Construction Outstanding Loan Balance $ 655,151 $ 107,933 $ 647,346 % of LHFI 8.23 % 1.36 % 8.13 % Avg. Loan Size $ 3,165 $ 4,906 $ 1,575 Weighted Avg. LTV 57
Slide 15: Investment Securities
INVESTMENT SECURITIES UNAUDITED Investment Securities Average Balance and Yield DOLLARS IN MILLIONS • Total securities portfolio weighted average effective duration was 4.28 years as of June 30, 1,592 2024, compared to 4.34 years as of March 31, 1,527 2024. 1,291 1,244 1,190 2.42 2.46 2.50 2.51 2.54
Slide 16: Loans & Securities - Repricing or Maturity
LOANS & SECURITIES- REPRICING OR MATURITY UNAUDITED Total Loans Repricing or Maturity Term Rate Structure 1 Year or > 1 to 3 > 3 to 5 > 5 to 10 Floating Variable > 10 Years Total Fixed Rate (Dollars in thousands) less Years Years Years Rate Rate Commercial and industrial $ 1,619,947 $ 222,924 $ 195,
Slide 17: Deposit Detail
DEPOSIT DETAIL UNAUDITED Deposit Composition at June 30, 2024(15): $8,511 million Commercial Deposit Composition: $4,405 million Finance & Insurance: 7% Brokered: 7% Real Estate Rental & Leasing: 6% Construction: 6% Professional, Scientific, & Public: 10% Technical Svcs: 5% Other Business Deposits 2
Slide 18: Deposit Trends
DEPOSIT TRENDS UNAUDITED Average Deposits ($) Total Deposit Beta (%) DOLLARS IN MILLIONS 8,559 5.26 5.33 5.33 5.33 8,260 8,443 8,361 8,439 4.99 1,535 4.51 1,379 1,627 1,603 1,564 53.33 55.05 3.65 50.48 1,866 1,894 2,140 2,088 1,973 46.72 42.16 35.21 2.18 23.25 4,741 4,728 4,785 5,009 5,130 0.77 0.12
Slide 19: Yields and Costs
YIELDS AND COSTS UNAUDITED Yield on LHFI (%) 8.43 8.50 8.50 8.50 8.16 6.47 6.58 6.58 6.35 6.18 6.46 6.58 6.58 6.35 6.16 5.20 5.33 5.33 5.33 4.92 2Q23 3Q23 4Q23 1Q24 2Q24 (16) Yield on LHFI Yield on LHFI excl. PAA Avg. Prime Rate 30 Day Avg. SOFR Cost of Funds (%) 3.95 3.85 3.71 3.47 3.12 3.05 3.04 2
Slide 20: Net Interest Income and NIM Trends
NET INTEREST INCOME AND NIM TRENDS DOLLARS IN THOUSANDS, UNAUDITED Net Interest Income & NIM ($) NIM-FTE Changes - 2Q24 (%) 0.04 0.02 0.01 0.01 75,291 74,130 3.19 0.06 3.17 72,989 73,323 73,890 530 (0.05) 6,415 (0.11) 6,838 5,214 5,783 8,109 3.00 68,346 67,292 67,775 67,540 65,781 2.00 B C t. s . cc
Slide 21: Net Revenue Distribution
NET REVENUE DISTRIBUTION DOLLARS IN THOUSANDS, UNAUDITED Net Interest Income + Noninterest Income ($) 92,249 96,355 90,927 90,578 81,185 82.8% 80.4% 89.9% 81.0% 76.7% 2Q23 3Q23 4Q23 1Q24 2Q24 Net Interest Income Noninterest Income Major Components of Noninterest Income(19) ($) Components of Other No
Slide 22: Noninterest Expense Analysis
NONINTEREST EXPENSE ANALYSIS UNAUDITED Noninterest Expense Composition ($) Efficiency Ratios (%) DOLLARS IN THOUSANDS 64,388 75.02 60,906 70.55 66.82 65.55 65.24 64.76 58,887 58,707 64.81 58,663 63.59 60.82 60.49 10,593 9,795 9,671 9,342 8,460 3,072 2,947 2,502 2,137 2,716 2,868 2,259 2,137 3,468 2,
Slide 23: Capital
CAPITAL UNAUDITED Tier 1 Capital to Average Assets (Leverage Ratio)(20) (%) Tier 1 Capital to Risk-Weighted Assets(20) (%) 12.3 12.0 12.0 12.2 11.7 12.1 12.2 11.9 11.6 10.7 10.7 10.5 11.2 10.3 10.1 10.5 10.6 10.5 10.0 9.6 2Q23 3Q23 4Q23 1Q24 2Q24 2Q23 3Q23 4Q23 1Q24 2Q24 Company Level Origin Bank Le
Slide 24: Notable Items
NOTABLE ITEMS DOLLARS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS, UNAUDITED QTD YTD 2Q24 1Q24 2Q24 $ Impact EPS Impact (22) $ Impact EPS Impact (22) $ Impact EPS Impact (22) Notable interest income items: Interest income reversal on relationships impacted by questioned banker activity $ (1,206) $ (0.03)
Slide 25: Reconciliation of Non-GAAP Financial Measures
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES DOLLARS IN THOUSANDS, UNAUDITED 2Q24 1Q24 Calculation of PTPP earnings: Net income $ 20,989 $ 22,632 Provision for credit losses 5,231 3,012 Income tax expense 5,747 6,227 PTPP earnings (non-GAAP) $ 31,967 $ 31,871 Calculation of PTPP ROAA: PTPP earnings
Slide 26: Reconciliation of Non-GAAP Financial Measures
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES DOLLARS IN THOUSANDS, UNAUDITED 2Q24 1Q24 Calculation of ROATCE: Net income $ 20,989 $ 22,632 Divided by number of days in the quarter 91 91 Multiplied by the number of days in the year 366 366 Annualized net income $ 84,417 $ 91,025 Total average stockh
Slide 27: Reconciliation of Non-GAAP Financial Measures
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES DOLLARS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS, UNAUDITED Calculation of tangible book value per common share and adjusted tangible book value per common share: 2Q24 1Q24 4Q23 3Q23 2Q23 1Q23 4Q22 3Q22 Total common stockholders' equity $ 1,095,894 $ 1,078
Slide 28: Reconciliation of Non-GAAP Financial Measures
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES DOLLARS IN THOUSANDS, UNAUDITED Calculation of core efficiency ratio: 2Q24 1Q24 4Q23 3Q23 2Q23 1Q23 4Q22 3Q22 Total noninterest expense $ 64,388 $ 58,707 $ 60,906 $ 58,663 $ 58,887 $ 56,760 $ 57,254 $ 56,241 Insurance and mortgage noninterest expense (8,
Slide 29: Presentation Notes
PRESENTATION NOTES (1) Does not include wholesale or mortgage warehouse deposits. (2) Excludes MW LOC. (3) New Fort Walton Beach, Florida loan production office opened in 1Q24. (4) As used in this presentation, PTPP earnings, PTPP ROAA, tangible book value per common share, adjusted tangible book va