Origin Bancorp, Inc. · NYSE:OBK
Origin Bancorp — Investor Presentation (October 2020)
37 slides from Origin Bancorp's investor presentation, Oct 5, 2020
Slide 1: Origin Bancorp, Inc. Investor Presentation October 2020
ORIGIN BANCORP, INC. _____ __ ORIGIN BANCORP, INC. INVESTOR PRESENTATION OCTOBER 2020 Nasdaq: OBNK
Slide 2: Forward-Looking Statements
__ 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") future financial performance, business and g
Slide 3: Company Overview
__ COMPANY OVE RVIEW ORIGIN BANCORP, INC. 3
Slide 4: Company Snapshot and Consolidated Financial Highlights
ORIGIN BANCORP, INC. _____ __ DOLLARS IN MILLIONS DALLAS - FORT WORTH Entry: 2008 Loans: $2,187 Deposits: $1,363 Banking Centers: 9 NORTH LOUISIANA Entry: 1912 Loans: $1,467 Deposits: $2,286 Banking Centers: 19 HOUSTON Entry: 2013 Loans: $984 Deposits: $905 Banking Centers: 9 CENTRAL MISSISSIPPI Ent
Slide 5: Franchise Highlights
__ FRANCHISE HIGHLIGHTS ORIGIN BANCORP, INC. 5 Proven Track Record of Organic Growth x 18% total asset CAGR since 2005 primarily through organic growth Diverse and Attractive Geographic Footprint x Meaningful franchise operations in both lower cost, stable markets as well as some of the fastest grow
Slide 6: Leadership Team
__ Warrie Birdwell – Regional President (North Texas) Jim Crotwell – Chief Risk Officer Carmen Jordan – Regional President (Houston) Larry Little – State President (Louisiana) Preston Moore – Chief Credit & Banking Officer Larry Ratzlaff – State President (Mississippi) Linda Tuten – Chief People & D
Slide 7: Diverse Geographic Footprint
DIVERSE GEOGRAPHIC FOOTPRINT Loans & Deposits by State at 6/30/2020 (1) OUR MARKETS Attractive combination of stable, low cost markets and metropolitan growth markets Expansion through organic growth and selective M&A TRACK RECORD OF GROWTH IN NEW MARKETS Success in growing loans and deposits organi
Slide 8: North Louisiana and Central Mississippi Markets
__ Located in the I - 20 corridor, North Louisiana has provided consistent growth over the years Greater Shreveport, LA area was recognized as most competitive area in the United States for business costs by KPMG Competitive Alternatives from 2010 to 2016 Has become a technology center, linking majo
Slide 9: Expanding Presence in Top Growth Markets
__ Fourth largest MSA in the U.S. with approximately 7.6 million residents as of 2019 and expected to grow to 11 million by 2040 Ranked first in U.S. in year over year population growth in 2019 Diversified economy and home to 24 Fortune 500 companies Prominent sectors include telecommunications, hea
Slide 10: A Unique & Defined Culture
A UNIQUE & DEFINED CULTURE __ 10 ORIGIN BANCORP, INC.
Slide 11: Company History and Growth
ORIGIN BANCORP, INC. _____ __ 2003 – Drake Mills becomes CEO of Origin Bank 2005 – Acquired First United Bank in Farmerville, LA 2008 – Entered Dallas, TX market and hired team of five bankers 2009 – Acquired First Louisiana Bancshares, Inc. in Shreveport, LA 2010 – Entered Madison County, MS throug
Slide 12: Credit Highlights
CREDIT HIGHLIG HTS __ 12 ORIGIN BANCORP, INC.
Slide 13: COVID-19 Forbearances and PPP Loans
COVID - 19 Loans Held for Investment (“LHFI“) Forbearances ) ) ) 6/30/2020 8/31/2020 Estimated 9/30/2020 (1) Estimated 10/31/2020 (1) Industry Forb e ara n ce Amount % of LHFI (2 Forbearance Amount % of LHFI (2 Forbearance A mount % of LHFI (2 Forbearance Amount % of LHFI (2) Hotels $ 59,258 92.5 %
Slide 14: Well Diversified Loan Portfolio
__ 14 DOLLARS IN MILLIONS Non - Owner Occupied C&D and CRE: (1) $1,313 C&I, Owner Occupied C&D and CRE, Mtg. Warehouse: (1) $2,663 C&I, Owner Occupied C&D and CRE, Mtg. Warehouse: 56% Non - Owner Occupied C&D and CRE: 27% (1) Does not include loans held for sale or PPP loans. Loan Composition: (1) $
Slide 15: Deep Dive - Selected Sectors
__ 15 LHFI (1) at 6/30/2020 LHFI - Selected Sectors (as of 6/30/2020) (dollars in thousands) Outstanding Balance A llo w ance Amount Avg. Loan Size Wtd. Avg. Risk Rating (3) Past Due Nonpe r fo r ming Loans (“NPLs”) Selected sectors (1)(2) $ 547,626 $ 15,712 $ 1,214 5.22 1.34 % $ 7,633 All other LHF
Slide 16: Hotel Sector
__ HOTEL SECTOR 16 Hotel Stats: • Balance represented 1.3% of total LHFI excl. PPP loans • Hotel sector past due: 0% • Hotel sector NPL: $0 • No conference center hotels • Number of forbearances: 16 (6/30/20); 14 (8/31/20) • Total forbearance amount: $59,258K (6/30/20); $58,183K (8/31/20) • Percenta
Slide 17: Energy Sector
Energy Stats: • Balance represented 1.3% of total LHFI excl. PPP loans • No exploration & production lending exposure • Number of forbearances: 15 (6/30/20); 6 (8/31/20) • Total forbearance amount: $6,776K (6/30/20); $9,571K (8/31/20) • Percentage of loans in forbearance: 10.8% (6/30/20); 16.8% (8/3
Slide 18: Non-Essential Retail Sector
Non - Essential Retail Stats: • Balance represented 3.1% of total LHFI excl. PPP loans • Number of forbearances: 49 (6/30/20); 14 (8/31/20) • Total forbearance amount: $82,424K (6/30/20); $52,131K (8/31/20) • Percentage of loans in forbearance: 56.2% (6/30/20); 34.4% (8/31/20) • Pre - COVID - 19 non
Slide 19: Restaurant Sector
Restaurant Stats: • Balance represented 2.8% of total LHFI excl. PPP loans • Restaurant sector past due: 0% • Restaurant sector NPL: $0 • Number of forbearances: 106 (6/30/20); 38 (8/31/20) • Total forbearance amount: $100,209K (6/30/20); $50,748K (8/31/20) • Percentage of loans in forbearance: 74.7
Slide 20: Assisted Living Sector
Assisted Living Stats: • Balance represented 2.9% of total LHFI excl. PPP loans • Number of forbearances: 5 (6/30/20); 6 (8/31/20) • Total forbearance amount: $48,935K (6/30/20); $59,744K (8/31/20) • Percentage of loans in forbearance: 34.9% (6/30/20); 41.7% (8/31/20) • Pre - COVID - 19 assisted liv
Slide 21: Credit Quality and Allowance
Economic Drivers: • Shrinking U.S. economy in 2020 Key source: Moody's Analytics • Elevated unemployment rate Key source: Moody's Analytics • Loss reversion period extended to 18 months from 12 months CREDIT QUALITY (dollars in thousands) 1/1/2020 1Q2020 A llo w ance Increase 3/31/2020 2Q2020 A llo
Slide 22: Financial Highlights
LIGHTS __ 22 ORIGIN BANCORP, INC. FINANCIAL HIGH
Slide 23: Deposit Trends
ORIGIN BANCORP, INC. __ Brokered: 9.1% Time Deposits: 13.9% (2) Interest - bearing : 47.5% Noninterest - bearing: 29.5% 23 Deposit Mix as of 6/30/2020 Average Deposits (1) Average brokered time deposits are included in the brokered category. (2) Includes interest - bearing deposits, money market dep
Slide 24: Noninterest Income and Net Revenue Distribution
__ 24 Noninterest Income ORIGIN BANCORP, INC. Net Interest Income \ Noninterest Income • Noninterest income regularly accounts for approximately 20% of total net revenue, with an uptick in 2Q2020 due to increased mortgage banking revenue. • The mortgage banking revenue increase was primarily driven
Slide 25: Net Interest Income and NIM Trends
• Net interest income increased $3.5 million in 2Q2020 from 1Q2020, and increased $3.3 million in 2Q2020 from 2Q2019. • Deposit cost savings contributed the greatest increase in net interest income, along with warehouse and PPP loans, offset by falling loan yields. • NIM compression of 35 bps to 3.0
Slide 26: Yields, Costs and Asset Profile
LHFI (1) : Fixed \ Variable (by Index) at 06/30/2020 • The cost of interest bearing deposits declined 49 bps during 2Q2020, and the cost of total deposits and cost of total deposits and borrowings declined 41 bps and 40 bps during 2Q2020, respectively. • Variable rate LHFI made up 63% of total LHFI
Slide 27: Noninterest Expense Composition
• Operating leverage reflects an improving trend in the efficiency ratio, coupled with a decline in the ratio of NIE to average assets as a result of improved mortgage performance in the most recent quarter. • Efficiency improvements during the year were partially offset by the declining interest ma
Slide 28: Appendix
APPENDIX __ 28 ORIGIN BANCORP, INC.
Slide 29: Securities Portfolio
SECURITIES PORTFOLIO B oo k V a l ue M a rk e t Value Net Unrealized Gain (Loss) Available for Sale Mortgage - Backed Securities 237,359 $ $ 245,861 $ 8 , 50 2 Commercial & Residential Mortgage Obligations 162 , 57 5 165 , 91 0 3 , 33 5 State and Municipal 267 , 32 7 281 , 00 6 13 , 67 9 Corporate 2
Slide 30: Interest Rate Sensitivity
INTEREST RATE SENSITIVITY Note: Above analysis reflects a simulated instantaneous and gradual parallel shift in interest rates, and the impact to net interest income and the economic value of equity, Static Shock Impact on Net Interest Income Gradual 12 - Month Impact on Economic Value of Equity ( 1
Slide 31: Capital and Return of Capital to Shareholders
• 2020 Return of Capital to Shareholders ◦ Return of $5.1 million of capital ($723,000 in stock buyback and $4.3 million in common dividends) to shareholders YTD 6/30/2020, but the Company has suspended buy - back activity ◦ PPP loans impacted leverage ratio by 75 bps during 2Q2020 CAPI T AL __ 31 O
Slide 32: Balance Sheet and Income Statement Summary
Balance Sheet June 30 2020 March 31 2020 June 30 2019 Linked Qtr $ Δ Linked Qtr % Δ YoY $ Δ YoY % Δ Total Loans Held For Investment ("LHFI") $ 5,312,1 9 4 $ 4,481,1 8 5 $ 3,984,5 9 7 $ 831,009 18.5 % $ 1,327,597 33.3 % Total Assets 6,643,9 0 9 6,049,6 3 8 5,119,6 2 5 594,271 9.8 1,524,284 29.8 Total
Slide 33: Income Statement 1H 2020 vs 1H 2019
Income Statement 1H 2020 1H 2019 Y oY $ Δ YoY % Δ Net Interest Income $ 89,100 $ 84,995 $ 4,105 4.8 % Provision for Credit Losses 39,934 2,990 36,944 1,235.6 Noninterest Income 31,220 22,780 8,440 37.1 Noninterest Expense 74,317 72,476 1,841 2.5 Net Income 5,710 26,438 (2 0 ,7 2 8 ) (7 8 .4) PTPP (1
Slide 34: Historical Interest Coverage
Other Borrowings - Interest Expense Total Debt Interest Expense Total Deposit - Interest Expense Total Debt + Deposit Interest Expense - Pre - Tax Income Pre Tax Income Interest C In HISTORICAL INTEREST COVERAGE DOLLARS IN THOUSANDS Annual Quarter 2017 2018 2019 Total Investment in Subsidiaries $ 45
Slide 35: Reconciliation of Non-GAAP Financial Measures
Calculation of Tangible Common Equity: 2Q2020 1Q2020 2Q2019 Total common stockholders' equity $ 614,781 $ 606,631 $ 584,293 Less: goodwill and other intangible assets, net 30,953 31,241 32,144 Tangible Common Equity $ 583,828 $ 575,390 $ 552,149 Calculation of Tangible Book Value per Common Share: D
Slide 36: Reconciliation of Non-GAAP Financial Measures 1H
Calculation of Tangible Common Equity: 1H 2020 1H 2019 Total common stockholders' equity $ 614,781 $ 584,293 Less: goodwill and other intangible assets, net 30,953 32,144 Tangible Common Equity $ 583,828 $ 552,149 Calculation of Tangible Book Value per Common Share: Divided by common shares outstand
Slide 37: Reconciliation of Non-GAAP Financial Measures
Calculation of Tangible Common Equity: 2Q2020 1Q2020 2Q2019 Total common stockholders' equity $ 614,781 $ 606 , 63 1 $ 584 , 29 3 Less: goodwill and other intangible assets, net 30,953 31,241 32,144 Tangible Common Equity $ 583,828 $ 575,390 $ 552,149 Calculation of Tangible Assets: Total assets $ 6
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