Origin Bancorp, Inc. · NYSE:OBK
Origin Bancorp — Q4 2018 Earnings Presentation
18 slides from Origin Bancorp's earnings presentation, Jan 29, 2019
Slide 1: 4Q and Full Year 2018 Overview Presentation
4Q AND FULL YEAR TWENTY18 OVERVIEW PRESENTATION
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: Our culture is a true differentiator
At Origin, we believe our culture is a true differentiator across our footprint. It defines all that we do and permeates throughout our organization. It allows us to attract the best bankers in our markets, and it drives our philosophy of relationship banking. From our mission, vision, and values to
Slide 4: Company Snapshot
COMPANY SNAPSHOT • Origin Bank was founded in 1912 • OBNK is headquartered in Ruston, LA 8 • 41 banking centers operating across Texas, 19 5 Louisiana & Mississippi • Strong commercial focus with 39% C&I and 43% CRE lending mix across our footprint FINANCIAL HIGHLIGHTS 9 2018 Q4 DOLLARS IN MILLIONS
Slide 5: Fourth Quarter Financial Highlights
FOURTH QUARTER FINANCIAL HIGHLIGHTS 2018 HIGHLIGHTS DOLLARS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS Linked • Net interest income was at a historic 2018Q4 2018Q3 2017Q4 Q Δ YoY Δ high for our company, increasing by Balance Sheet $2.6 million, or 6.5%, over the Total Loans Held For Investment $ 3,789,1
Slide 6: Full Year Financial Highlights
FULL YEAR FINANCIAL HIGHLIGHTS 2018 HIGHLIGHTS DOLLARS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS Years Ended • Successfully completed the Initial Balance Sheet December 31, 2018 December 31, 2017 YoY Δ Public Offering of the Company's Total Loans Held For Investment $ 3,789,105 $ 3,241,031 16.9 % commo
Slide 7: Balance Sheet Well-Positioned for Growth & Profitability
BALANCE SHEET WELL- AVERAGE INTEREST EARNING ASSETS & NIM (FTE) POSITIONED FOR DOLLARS IN MILLIONS 4.00% $4,433 ) $ GROWTH & PROFITABILITY ( S ) 4,400 T E E T F S ( 3.90% $4,230 S N A I G • Consistent increase in yields G 4,200 N R 3.82% I A on interest earning assets $4,055 N M R A T 3.80% E S 3.76
Slide 8: Asset Sensitivity - % Change in Net Interest Income
ASSET SENSITIVITY - % CHANGE IN NET INTEREST INCOME (12/31/18) ASSET SENSITIVE BALANCE SHEET 19.2% 14.5% 9.7% 4.9% • Well-positioned to benefit —% from a rising rate environment (6.2)% • Substantial growth in rate (15.3)% sensitive assets over the last five years -200 bps -100 bps 0 bps 100 bps 200
Slide 9: Net Revenue Distribution - Diversified & Growing Revenue Streams
NET REVENUE DISTRIBUTION – 2018Q4 DIVERSIFIED & GROWING Service Charges & Fees: REVENUE STREAMS 6% Mortgage Banking Revenue: 4% • Meaningful noninterest income Insurance Commission & Fee Income: supplements interest related 5% revenue Other: 5% • Comprehensive product suite delivered with high quali
Slide 10: Ability to Leverage Operating Infrastructure
ABILITY TO LEVERAGE OPERATING EFFICIENCY INFRASTRUCTURE 90.00% 4.00% • Cost-effective, centralized back office functions are performed in our North 85.00% Louisiana operations center 3.04% 3.00% 2.94% 2.88% 2.93% 3.00% • Infrastructure exists to support significant asset growth at 80.00% S increasin
Slide 11: Our Markets
OUR MARKETS AVERAGE DEPOSITS & DEPOSIT COST DOLLARS IN MILLIONS $3,658 150 bps $3,458 • DIVERSE GEOGRAPHIC $3,235 $3,337 125 bps FOOTPRINT $2,814 t s 100 bps o C t • Attractive combination of stable, low i 75 bps s o cost markets and markets p e 50 bps experiencing metropolitan growth D 25 bps • Exp
Slide 12: Diversified Commercial Loan Composition - 2018Q4
DIVERSIFIED COMMERCIAL LOAN COMPOSITION – 2018Q4 LOAN PORTFOLIO DOLLARS IN MILLIONS • Focus on commercial lending Other: 1% to middle market and small businesses as well as their owners and executives C&D: 11% Residential: Owner Occupied • Commercial loans represent 17% CRE: 12% cumulative 82% of po
Slide 13: Deposit Composition - Growing Core Deposit Franchise
DEPOSIT COMPOSITION – 2018Q4 GROWING CORE DEPOSIT FRANCHISE Savings: 4% Brokered: 9% • Continued success in growing Noninterest- core deposits, especially bearing noninterest-bearing deposits. demand: 25% Time deposits: 21% Interest- • Low cost of deposits driven by bearing legacy North Louisiana de
Slide 14: Underwriting & Credit Culture
UNDERWRITING & CREDIT NPLs / LOANS HFI CULTURE 0.83% 0.84% 0.79% • Excellent track record of 0.73% 0.74% credit quality across core commercial lending portfolio • Seasoned lenders with strong credit backgrounds and significant experience in our markets 2017Q4 2018Q1 2018Q2 2018Q3 2018Q4 • Centralize
Slide 15: Strong Capital Position
STRONG CAPITAL TOTAL RISK-BASED CAPITAL POSITION DOLLARS IN MILLIONS $35 $47 $39 • Robust capital levels with $44 opportunity for deployment through organic growth and $529 $433 strategic acquisitions $379 $423 • IPO net proceeds partially used to redeem SBLF 2015 2016 2017 2018 preferred stock Tier
Slide 16: Strategic priorities: scale, efficiency, growth
Increase scale across the franchise, and Improve operational efficiency and particularly in Houston increase profitability Focused effort to improve margin and risk-adjusted returns Grow client base and continue capturing market share Continue our disciplined approach to organic loan and deposit gro
Slide 17: Key Highlights
KEY HIGHLIGHTS EXPERIENCED LEADERSHIP AND STRONG INSIDER OWNERSHIP \ \ \ TRACK RECORD OF ORGANIC GROWTH ( ) — ATTRACTIVE FOOTPRINT @ stRONG core DEPOSIT FRANCHISE @ oversiried ReveNUE STREAMS @ RECORD OF EARNINGS GROWTH @ PROVEN CREDIT CULTURE ACROSS CORE LOAN PORTFOLIO @ EXPLORING Maa OPPORTUNITIES
Slide 18: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures DOLLARS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS 2018Q4 2018Q3 2018Q2 2018Q1 2017Q4 Calculation of Tangible Common Equity: Total Stockholders' Equity $ 549,779 $ 531,919 $ 519,356 $ 462,824 $ 455,342 Less: Preferred Stock - Series SBLF — — — 48,260 48,260