Origin Bancorp, Inc. · NYSE:OBK
Origin Bancorp — Q1 2020 Earnings Presentation
28 slides from Origin Bancorp's earnings presentation, May 5, 2020
Slide 1: Origin Bancorp, Inc. 1Q Twenty20 Overview Presentation
ORIGIN BANCORP, INC. 1Q TWENTY20 OVERVIEW PRESENTATION 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: Unique by Design
UNIQUE BY DESIGN 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 m
Slide 4: Key Highlights
KEY HIGHLIGHTS EXPERIENCED LEADERSHIP AND STRONG INSIDER OWNERSHIP 9 19 6 TRACK RECORD OF ORGANIC GROWTH 9 ATTRACTIVE FOOTPRINT STRONG DEPOSIT FRANCHISE DIVERSIFIED REVENUE STREAMS DOLLARS IN MILLIONS DALLAS - FORT WORTH HOUSTON Entry: 2008 Entry: 2013 Loans: $1,626 Loans: $928 PROVEN CREDIT CULTURE
Slide 5: Financial Results - First Quarter 2020
FINANCIAL RESULTS - FIRST QUARTER 2020 DOLLARS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS March 31 December 31 March 31 Linked Qtr Linked Qtr YoY YoY Balance Sheet 2020 2019 2019 $ Δ % Δ $ Δ % Δ Total Loans Held For Investment ("LHFI") $ 4,481,185 $ 4,143,195 $ 3,838,343 $ 337,990 8.2 % $ 642,842 16.7 %
Slide 6: COVID-Response
COVID - 19 RESPONSE* • In addition to having our employees work from home, our drive- thrus remain open and our employees are accepting one-on-one appointments with customers on an as needed basis “Challenging times create the opportunity for our collective character, • Activated our Pandemic Respon
Slide 7: Our LA Markets COVID-19 Cases
Our LA As of 4/30/2020 Markets* State of LA Cases Reported 2,908 28,711 Deaths Reported 169 1,927 Source: Louisiana Department of Health * Our LA markets include Caddo, Bossier, Lincoln, Union, Ouachita and Morehouse parishes. 7 ORIGIN BANCORP, INC. _______
Slide 8: Supporting Our Customers
SUPPORTING OUR CUSTOMERS DOLLARS IN THOUSANDS COVID-19 LHFI Forbearances at 04/30/2020 SBA Paycheck Protection Program Activity Total Loan Avg Loan # of Total Loan Avg Loan # of Industry ($) ($) Loans Industry ($) ($) Loans Real estate rental/leasing $274,864 $662 415 Professional Services $81,565 $
Slide 9: Well Diversified Loan Portfolio
WELL DIVERSIFIED LOAN PORTFOLIO DOLLARS IN MILLIONS Loan Composition(1) at 03/31/2020: $4,481 C&I, Owner Occupied C&D and CRE, Mtg. Warehouse: $2,474 Mtg. Warehouse: 10% Finance & Insurance: 6% Real Estate & Transportation: 3% Construction: 10% Retail Shopping: 3% Owner Banks: 3% Restaurants: 2% Com
Slide 10: Loan Portfolio Collateral Diversification
LOAN PORTFOLIO COLLATERAL DIVERSIFICATION DOLLARS IN MILLIONS Total LHFI at 03/31/2020: $4,481 C&I, Owner Occupied C&D and CRE, Mtg. Warehouse: $2,474 Other: 1% Accounts Receivable / Inventory: 15% Unsecured: 4% Real Estate: 11% Cash & Investments: 4% Equipment: 5% Notes Receivable: 15% Equipment: 5
Slide 11: Deep Dive - Selected Sectors
DEEP DIVE - SELECTED SECTORS LHFI at 03/31/2020 All Other LHFI: 77.8% • LHFI ended the quarter at $4.48 billion, an increase of $338.0 million, or 8.2%, compared to the end of 2019. • Six sectors analyzed account for 22.2% Hotels: 1.4% of total LHFI. Energy: 1.9% Transportation: 2.7% • Approximately
Slide 12: Healthcare Sectors
HEALTHCARE SECTORS Healthcare Portfolio at 03/31/2020 All Other Healthcare: 9% Healthcare Stats: Offices of Assisted Healthcare Living • Balance represents 8.5% of total LHFI Professionals: Facilities: 31% 14% • Healthcare Sector DSCR: 1.51x $381.8M • Healthcare Sector LTV: 41% CRE Healthcare: 17% N
Slide 13: Retail Shopping Sectors
RETAIL SHOPPING SECTORS Retail Shopping Portfolio at 03/31/2020 Retail Shopping: 13% Retail Shopping Stats: • Balance represents 4.7% of total LHFI • Retail shopping sector DSCR: 1.41x • Retail shopping sector LTV: 36% CRE Retail $212.9M Stores: 28% National Credit Tenant: 59% Retail Shopping Sub-Se
Slide 14: Restaurant Sectors
RESTAURANT SECTORS Restaurant Portfolio at 03/31/2020 Restaurant Stats: Limited-Service Restaurant: 21% • Balance represents 3.0% of total LHFI Full Services • Restaurant sector DSCR: 1.40x Restaurant: $132.4M 43% • Restaurant sector LTV: 54% • Restaurant sector past due: 0% • Restaurant sector NPL:
Slide 15: Transportation Sectors
TRANSPORTATION SECTORS Transportation Portfolio at 03/31/2020 Airlines & Aircraft Transportation Stats: Operations: 17% • Balance represents 2.7% of total LHFI Trucking & All Other • Transportation sector DSCR: 4.11x Transportation: 41% $119.5M • Transportation sector LTV: 56% Barge Service: 42% Tra
Slide 16: Energy Sectors
ENERGY SECTORS Energy Portfolio at 03/31/2020 Midstream: 15% Energy Stats: • Balance represents 1.9% of total LHFI • No Exploration & Production lending exposure $82.8M • Energy sector DSCR: 12.36x • Energy sector LTV: 78% Services: 85% Energy Sub-Sectors # of Total Outstanding Avg. Loan Allowance W
Slide 17: Hotel Sectors
HOTEL SECTORS Hotel Portfolio at 03/31/2020 Bed-and-Breakfast Inns: 2% Boutique & Independent: 6% Hotel Stats: IHG: 5% • Balance represents 1.4% of total LHFI Hilton: 30% • Hotel sector DSCR: 1.40x Choice: 12% • Hotel sector LTV: 41% $63.3M • Hotel sector past due: 0% Hyatt: 18% • Hotel sector NPL:
Slide 18: Asset Quality Trends
ASSET QUALITY TRENDS LHFI 1.93% 1.92% 1.65% 1.57% 1.67% 1.14% 0.99% 0.79% 0.76% 0.80% 0.75% 0.72% 0.75% 0.72% 0.74% 0.29% 0.26% 0.11% (0.06)% 0.07% 1Q2019 2Q2019 3Q2019 4Q2019 1Q2020 Nonperforming LHFI / LHFI Past due LHFI / LHFI Net Charge-Offs / Average LHFI (annualized) Classified Loans / LHFI CE
Slide 19: Net Interest Income and NIM Trends
NET INTEREST INCOME AND NIM TRENDS DOLLARS IN THOUSANDS • Net interest income decreased $1.3 million in 1Q2020 from 4Q2019, Yield on LHFI and increased $784 thousand in1Q2020 from 1Q2019. • Asset sensitive balance sheet lead to quarterly NIM compression of 5.50% 5.50% 14 bps in 1Q2020 from 4Q2019. 5
Slide 20: Asset Sensitive Profile
ASSET SENSITIVE PROFILE Interest Rate Shock Profile (03/31/2020) 22.2% 16.2% 10.9% 9.8% 7.3% 5.3% 6.4% 3.8% —% (2.8)% (4.9)% -100 bps 0 bps 100 bps 200 bps 300 bps 400 bps % Change in NII % Change in EVE LHFI: Fixed \ Variable (by Index) at 03/31/2020 Other indices: 1% • Variable rate LHFI make up 5
Slide 21: Net Revenue Distribution
NET REVENUE DISTRIBUTION DOLLARS IN THOUSANDS Net Interest Income \ Noninterest Income Noninterest Income $12,880 $57,502 $53,630 $54,145 $54,913 $54,954 $12,144 $11,604 $1,614 $12,880 $11,176 $10,818 $1,692 $11,604 $11,176 $12,144 $10,818 $1,661 $1,281 $1,351 $1,392 $676 $511 $172 $151 $3,203 $3,03
Slide 22: Noninterest Expense Composition
NONINTEREST EXPENSE COMPOSITION DOLLARS IN THOUSANDS $37,095 $36,534 $36,097 $35,381 $35,064 • Improving trend in efficiency ratio, coupled with a decline in the ratio of NIE to average assets as a result of expense stabilization in 2020. $6,472 $6,786 $5,656 $6,444 $5,792 • Efficiency improvements
Slide 23: Deposits
DEPOSITS DOLLARS IN MILLIONS Average Deposits Loans & Deposits by State at 03/31/2020 Loans Deposits $4,325 $4,203 $3,899 $3,977 $3,842 $782 $803 $827 29% $821 $847 $162 $162 44% $168 $242 $319 14% $2,088 $2,283 $1,906 $1,818 $1,703 15% $1,150 $973 $1,018 $1,076 $1,098 57% 41% 1Q2019 2Q2019 3Q2019 4
Slide 24: Deposit Repricing and Strategy
DEPOSIT REPRICING AND STRATEGY DOLLARS IN MILLIONS Deposit Cost Trends (QTD Annualized) Time Deposit Repricing Schedule 2.13% 2.16% Maturity Balance WAR 2.04% 2.08% 1.98% 1.19% 1.16% 2Q2020 $153 1.96% 1.11% 1.04% 3Q2020 151 2.02 0.95% 4Q2020 142 1.88 0.92% 0.95% 0.82% 1Q2021 121 1.69 0.77% 0.80% 2Q2
Slide 25: Liquidity
LIQUIDITY Primary and Secondary Liquidity Sources (dollars in thousands) 1Q2020 4Q2019 Cash and Equivalents $560,179 $291,518 • Pledged more public deposits with FHLB Letters of Credit during 1Q2020, shifting away from pledging securities. Unpledged Investment Securities 451,336 235,295 • Drew down
Slide 26: Capital
CAPITAL Tier 1 Capital to Risk-Weighted Assets Total Capital to Risk-Weighted Assets Bank Level Company Level Bank Level Company Level 12.3% 12.1% 13.1% 13.0% 13.0% 13.4% 11.9% 11.7% 11.9% 12.7% 12.8% 11.3% 11.6% 11.6% 12.5% 12.1% 12.5% 12.4% 10.7% 11.0% (1) 1Q2019 2Q2019 3Q2019 4Q2019 1Q2020 1Q2019
Slide 27: Our Strategic Focus Is on Primary Areas.
OUR STRATEGIC FOCUS IS ON 4 PRIMARY AREAS. 27 ORIGIN BANCORP, INC. _______
Slide 28: Reconciliation of Non-GAAP Financial Measures
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES DOLLARS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS Calculation of Tangible Common Equity: 1Q2020 4Q2019 3Q2019 2Q2019 1Q2019 Total Common Stockholders' Equity $606,631 $599,262 $588,363 $584,293 $568,122 Less: Goodwill and Other Intangible Assets, Net 31,241