Origin Bancorp, Inc. · NYSE:OBK
Origin Bancorp — IPO Roadshow (October 2020)
41 slides from Origin Bancorp's IPO roadshow presentation, Oct 7, 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
ORIGIN BANCORP, INC. _______ 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 p
Slide 3: Offering notice and underwriter disclosure
ORIGIN BANCORP, INC. _______ 3 Origin Bancorp, Inc . has engaged Stephens Inc . (the “Underwriter”) to assist Origin Bancorp, Inc . in exploring a potential sale of subordinated notes (the “Securities”) . This presentation is not an offer to sell securities and Origin is not soliciting an offer to b
Slide 4: Preliminary Term Sheet: Fixed-to-Floating Subordinated Notes due 2030
ORIGIN BANCORP, INC. _______ ORIGIN BANCORP, INC. (NASDAQ: OBNK) HOLDING COMPANY FIXED - TO - FLOATING SUBORDINATED NOTES DUE 2030 SEC REGISTERED BBB - $80 MILLION FIXED - TO - FLOATING RATE (FIXED FOR 5 YEARS) 10 YEARS NON - CALL FOR 5 YEARS; CALLABLE ON ANY INTEREST PAYMENT DATE AT PAR THEREAFTER
Slide 5: Company Overview
ORIGIN BANCORP, INC. _______ 5 COMPANY OVERVIEW
Slide 6: 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 MISSISSIPP
Slide 7: Franchise Highlights
ORIGIN BANCORP, INC. _______ FRANCHISE HIGHLIGHTS 7 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
Slide 8: Leadership Team
ORIGIN BANCORP, INC. _______ 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) Lind
Slide 9: Diverse Geographic Footprint
ORIGIN BANCORP, INC. _______ DIVERSE GEOGRAPHIC FOOTPRINT 9 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 Success in growing loans and deposits organically i
Slide 10: Our Markets: North Louisiana and Central Mississippi
ORIGIN BANCORP, INC. _______ 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 techn
Slide 11: Expanding Presence in Top Growth Markets
ORIGIN BANCORP, INC. _______ 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 inclu
Slide 12: A Unique & Defined Culture
ORIGIN BANCORP, INC. _______ 12 A UNIQUE & DEFINED CULTURE
Slide 13: History and Growth Since 2003
ORIGIN BANCORP, INC. _______ 2003 – Drake Mills becomes CEO o f Origin Bank 2005 – Acquired First United Bank i n 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 t hro
Slide 14: Credit Highlights
ORIGIN BANCORP, INC. _______ 14 CREDIT HIGHLIGHTS
Slide 15: Supporting Our Customers - Forbearance and PPP Loans
ORIGIN BANCORP, INC. _______ 15 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 Forbearance Amount % of LHFI ( 2 ) Forbearance Amount % of LHFI ( 2 ) Forbearance Amount % of LHFI ( 2 ) Forbearance Amount % of
Slide 16: Well Diversified Loan Portfolio at 6/30/2020
ORIGIN BANCORP, INC. _______ 16 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
Slide 17: Deep Dive - Selected Sectors
ORIGIN BANCORP, INC. _______ 17 LHFI (1) at 6/30/2020 LHFI - Selected Sectors (as of 6/30/2020) (dollars in thousands) Outstanding Balance Allowance Amount Avg. Loan Size Wtd . Avg. Risk Rating Past Due Nonperforming Loans (“ NPL s”) Selected sectors (1)(2) $ 547,626 $ 15,712 $ 1,214 5.22 1.34 % $ 7
Slide 18: Hotel Sector
ORIGIN BANCORP, INC. _______ HOTEL SECTOR 18 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
Slide 19: Energy Sector
ORIGIN BANCORP, INC. _______ 19 Energy Stats: • Balance represented 1.3% of total LHFI excl. PPP loans • No e xploration & p roduction 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 forbea
Slide 20: Non-Essential Retail Sector
ORIGIN BANCORP, INC. _______ 20 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%
Slide 21: Restaurant Sector
ORIGIN BANCORP, INC. _______ 21 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) • Percenta
Slide 22: Assisted Living Sector
ORIGIN BANCORP, INC. _______ 22 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)
Slide 23: Credit Quality
ORIGIN BANCORP, INC. _______ 23 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 Allowance Inc
Slide 24: Financial Highlights
ORIGIN BANCORP, INC. _______ 24 FINANCIAL HIGHLIGHTS
Slide 25: Deposit Trends
ORIGIN BANCORP, INC. _______ Interest - bearing : 47.5% Noninterest - bearing : 29.5% Time Deposits : 13.9% Brokered : 9.1% 25 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
Slide 26: Noninterest Income and Net Revenue Distribution
ORIGIN BANCORP, INC. _______ 26 Noninterest Income 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 dr
Slide 27: Net Interest Income and NIM Trends
ORIGIN BANCORP, INC. _______ 27 • Net interest income increased $3.5 million in 2Q2020 from 1Q2020, and increased $3.3 million in 2Q2020 from 2Q2019. • Deposit cost savings contributed the greatest increase in net interest income, along with warehouse and PPP loans, offset by falling loan yields. •
Slide 28: Yields, Costs and Asset Profile
ORIGIN BANCORP, INC. _______ 28 LHFI (1) : Fixed \ Variable (by Index) at 06/30/2020 • The cost of interest bearing deposits declined 49 bps during 2Q2020, and the cost of total deposits and cost of total deposits and borrowings declined 41 bps and 40 bps during 2Q2020, respectively. • Variable rate
Slide 29: Noninterest Expense Composition and Operating Leverage
ORIGIN BANCORP, INC. _______ 29 • Operating leverage reflects an improving trend in the efficiency ratio, coupled with a decline in the ratio of NIE to average assets as a result of improved mortgage performance in the most recent quarter. • Efficiency improvements during the year were partially off
Slide 30: Appendix
ORIGIN BANCORP, INC. _______ 30 APPENDIX
Slide 31: Securities Portfolio
ORIGIN BANCORP, INC. _______ 31 SECURITIES PORTFOLIO Book Market Net Unrealized Value Value Gain (Loss) Available for Sale Mortgage-Backed Securities 237,359$ 245,861$ 8,502$ Commercial & Residential Mortgage Obligations 162,575 165,910 3,335 State and Municipal 267,327 281,006 13,679 Corporate 22,0
Slide 32: Interest Rate Sensitivity
ORIGIN BANCORP, INC. _______ INTEREST RATE SENSITIVITY 32 Note: Above analysis reflects a simulated instantaneous and gradual parallel shift in interest rates, and the impact to net i nte rest income and the economic value of equity, respectively. Static Shock Impact on Net Interest Income Gradual 1
Slide 33: Capital
ORIGIN BANCORP, INC. _______ 33 • 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 bp
Slide 34: Balance Sheet and Income Statement Comparison
ORIGIN BANCORP, INC. _______ 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") $ 5,312,194 $ 4,481,185 $ 3,984,597 $ 831,009 18.5 % $ 1,327,597 33.3 % Total Assets 6,643,909 6,049,638 5,119,625 594,271 9.8 1,5
Slide 35: Income Statement 1H 2020 vs 1H 2019
ORIGIN BANCORP, INC. _______ Income Statement 1H 2020 1H 2019 YoY $ 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
Slide 36: Historical Interest Coverage
ORIGIN BANCORP, INC. _______ HISTORICAL INTEREST COVERAGE 36 DOLLARS IN THOUSANDS Annual Quarterly Pro Forma (2) 2017 2018 2019 Q2'20 Q2'20 Investment in Subsidiaries 450,598$ 543,515$ 593,079$ 604,629$ 683,429$ Holding Company Total Equity 455,342 549,779 599,262 614,781 614,781 Double Leverage Rat
Slide 37: Pro Forma Capital
ORIGIN BANCORP, INC. _______ (1) Assumes $80M in gross subordinated note offering and variable underwriting costs of 1.50%. Assumes 0% risk - weighting on net proc eeds, for regulatory capital purposes. (2) As used in this presentation, tangible common equity and tangible assets are non - GAAP finan
Slide 38: Kroll Ratings
ORIGIN BANCORP, INC. _______ 38 KROLL RATINGS AS OF JANUARY 30, 2020 Entity Type Rating Outlook Action Origin Bancorp, Inc. Senior Unsecured Debt BBB Stable Assigned Subordinated Debt BBB- Stable Assigned Short-Term Debt K3 N / A Assigned Origin Bank Deposit BBB+ Stable Assigned Senior Unsecured Deb
Slide 39: Reconciliation of Non-GAAP Financial Measures
ORIGIN BANCORP, INC. _______ 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 B
Slide 40: Reconciliation of Non-GAAP Financial Measures 1H 2020
ORIGIN BANCORP, INC. _______ Calculation of Tangible Common Equity: 1H 2020 1 H 20 19 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: Di
Slide 41: Reconciliation of Non-GAAP Financial Measures
ORIGIN BANCORP, INC. _______ 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 A