Origin Bancorp, Inc. · NYSE:OBK
Origin Bancorp — Q2 2020 Earnings Presentation
20 slides from Origin Bancorp's earnings presentation, Sep 22, 2020
Slide 1: Origin Bancorp, Inc. Investor Update
ORIGIN BANCORP, INC. 9/22/20 INVESTOR UPDATE ORIGIN BANCORP, INC. _______
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: Financial Results - Second Quarter 2020
FINANCIAL RESULTS - SECOND QUARTER 2020 DOLLARS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS June 30 March 31 June 30 Linked Qtr Linked Qtr YoY YoY Balance Sheet 2020 2020 2019 $ Δ % Δ $ Δ % 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 %
Slide 4: Financial Results - 1H 2020
FINANCIAL RESULTS - 1H 2020 DOLLARS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS YoY YoY Income Statement 1H 2020 1H 2019 $ Δ % 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 74,3
Slide 5: Supporting Our Customers - Forbearance and PPP Loans
SUPPORTING OUR CUSTOMERS - FORBEARANCE AND PPP LOANS DOLLARS IN THOUSANDS COVID-19 LHFI Forbearances 6/30/2020 8/31/2020 Estimated 9/30/2020 Estimated 10/31/2020 Forbearance Forbearance Forbearance Forbearance Industry Amount % of LHFI(1) Amount % of LHFI(1) Amount % of LHFI(1) Amount % of LHFI(1) H
Slide 6: Deposit Trends
DEPOSIT TRENDS DOLLARS IN MILLIONS Average Deposits Loans & Deposits by State at 6/30/2020 $4,964 Loans Deposits $4,203 $4,325 $3,899 $3,977 $752 $224 $803 $782 28% $827 $821 $162 $162 43% $168 $242 $2,410 13% $2,088 $2,283 $1,818 $1,906 15% $1,579 $1,018 $1,076 $1,150 $1,098 59% 2Q2019 3Q2019 4Q201
Slide 7: Well Diversified Loan Portfolio at 6/30/2020
WELL DIVERSIFIED LOAN PORTFOLIO AT 6/30/2020 DOLLARS IN MILLIONS Loan Composition(1): $4,763 C&I, Owner Occupied C&D and CRE, Mtg. Warehouse: (1) $2,663 Real Estate & Construction: 7% Owner Occupied Mtg. Warehouse: 16% Construction/ Finance & Insurance: 5% Land/Land Office Building: 3% Development (
Slide 8: Deep Dive - Selected Sectors
DEEP DIVE - SELECTED SECTORS(1) LHFI(1) at 6/30/2020 • LHFI (excl. PPP loans net of deferred fees and costs) were $4.76 billion at 6/30/2020, All Other LHFI: 88.6% an increase of $281.9 million, or 6.3%, compared to 3/31/2020, and an increase of $619.9 million, or 15.0%, compared to the Non-Essentia
Slide 9: Hotel Sector
HOTEL SECTOR(1) Hotel Portfolio at 6/30/2020 Hotel Stats: Private Label: 6% Bed-and-Breakfast: 2% • Balance represented 1.3% of total LHFI excl. PPP loans IHG: 6% • Hotel sector past due: 0% • Hotel sector NPL: $0 Hilton: 30% • No conference center hotels Choice: 12% $64.0M • Number of forbearances:
Slide 10: Energy Sector
ENERGY SECTOR (1) Energy Portfolio at 6/30/2020 Energy Stats: • Balance represented 1.3% of total LHFI excl. PPP loans Midstream: 16% • 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) $6
Slide 11: Non-Essential Retail Sector
NON-ESSENTIAL RETAIL SECTOR(1) Non-Essential Retail Portfolio at 6/30/2020 Non-Essential Retail Stats: Retail Shopping: 9% • 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)
Slide 12: Restaurant Sector
RESTAURANT SECTOR(1) Restaurant Portfolio at 6/30/2020 Restaurant Stats: • Balance represented 2.8% of total LHFI excl. PPP loans • Restaurant sector past due: 0% Limited-Service • Restaurant sector NPL: $0 Restaurant: 36% Full Service Restaurant: 38% • Number of forbearances: 106 (6/30/20); 38 (8/3
Slide 13: Assisted Living Sector
ASSISTED LIVING SECTOR(1) Assisted Living Portfolio at 6/30/2020 Assisted Living Stats: • Balance represented 2.9% of total LHFI excl. PPP loans • Number of forbearances: 5 (6/30/20); 6 (8/31/20) Assisted Living Facilities: 100% • Total forbearance amount: $48,935K (6/30/20); $59,744K (8/31/20) • Pe
Slide 14: Credit Quality
CREDIT QUALITY Asset Quality Trends 1.14% 2.02% 0.80% 1.92% 0.75% 0.75% 0.74% 1.65% 1.57% 1.67% 0.76% 0.63% 0.72% 0.72% 0.50% 0.58% 0.29% 0.26% 0.07% 0.11% 2Q2019 3Q2019 4Q2019 1Q2020 2Q2020 2Q2019 3Q2019 4Q2019 1Q2020 2Q2020 Nonperforming LHFI / LHFI excl. PPP loans Classified Loans / LHFI excl. PP
Slide 15: Net Interest Income and NIM Trends
NET INTEREST INCOME AND NIM TRENDS DOLLARS IN THOUSANDS Net Interest Income Changes - 2Q2020 $46,290 $44,622 $44,095 $60,000 $42,969 $42,810 $3,052 $43,238 $2,022 $3,052 $50,000 $3,630 $46,290 $42,810 $(4,400) $(599) $(225) $40,000 3.70% 3.69% 3.58% 3.44% 1Q2020 Deposits 2Q2020 PPP loans 3.15% Wareh
Slide 16: Yields, Costs and Asset Profile
YIELDS, COSTS AND ASSET PROFILE Yield on LHFI Cost of Funds 5.50% 1.61% 5.31% 1.59% 4.95% 4.85% 1.44% 5.29% 5.23% 1.29% 4.22% 1.25% 1.28% 4.83% 4.09% 1.10% 4.44% 1.05% 1.19% 1.16% 2.44% 3.25% 2.18% 1.04% 0.79% 1.79% 0.95% 1.40% 0.65% 0.35% 0.54% 2Q2019 3Q2019 4Q2019 1Q2020 2Q2020 2Q2019 3Q2019 4Q201
Slide 17: Net Revenue Distribution
NET REVENUE DISTRIBUTION DOLLARS IN THOUSANDS Net Interest Income \ Noninterest Income Noninterest Income $65,366 $19,076 $733 $57,502 $54,913 $54,954 $1,527 $54,145 $19,076 $12,880 $11,176 $10,818 $12,144 $3,109 $12,880 $12,144 $1,614 $46,290 $11,176 $42,969 $44,622 $44,095 $42,810 $10,818 $1,692 $
Slide 18: Noninterest Expense Composition
NONINTEREST EXPENSE COMPOSITION DOLLARS IN THOUSANDS $38,220 • 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 $37,095 $36,534 $36,097 improved mortgage performance in most recent quarter. $35,064 $6,
Slide 19: Capital
CAPITAL Tier 1 Capital to Risk-Weighted Assets Total Capital to Risk-Weighted Assets Bank Level Company Level Bank Level Company Level 13.4% 12.1% 11.9% 13.0% 12.8% 13.0% 12.9% 11.7% 11.6% 12.5% 12.5% 12.5% 11.6% 12.1% 12.4% 11.3% 11.0% 10.7% 10.5% 10.1% (1) 2Q2019 3Q2019 4Q2019 1Q2020 2Q2020 2Q2019
Slide 20: Reconciliation of Non-GAAP Financial Measures
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES DOLLARS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS Calculation of Tangible Common Equity: 2Q2020 1Q2020 4Q2019 3Q2019 2Q2019 Total common stockholders' equity $ 614,781 $ 606,631 $ 599,262 $ 588,363 $ 584,293 Less: goodwill and other intangible assets, net 3