Origin Bancorp, Inc. · NYSE:OBK
Origin Bancorp — Q4 2020 Earnings Presentation
25 slides from Origin Bancorp's earnings presentation, Jan 27, 2021
Slide 1: 4Q and Full Year 2020 Investor Presentation
ORIGIN BANCORP, INC. _______ 4Q AND FULL YEAR TWENTY20 INVESTOR PRESENTATION ORIGIN BANCORP, INC.
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 performa
Slide 3: Company Snapshot: Deposits & Loans by State
ORIGIN BANCORP, INC. _______ 9 10 19 6 TEXAS Entry: DFW 2008 | Houston 2013 Loans: $2,562 Deposits: $2,574 LOUISIANA Entry: 1912 Loans: $1,468 Deposits: $2,453 DOLLARS IN MILLIONS (1) (2) 3 COMPANY SNAPSHOT • Origin Bancorp, Inc., the holding company for Origin Bank, is headquartered in Ruston, LA •
Slide 4: A Unique & Defined Culture
ORIGIN BANCORP, INC. _______ 4 A UNIQUE & DEFINED CULTURE
Slide 5: Balance Sheet and Income Statement Summary
ORIGIN BANCORP, INC. _______ Balance Sheet 4Q2020 3Q2020 4Q2019 Linked Qtr $ Δ Linked Qtr % Δ YoY $ Δ YoY % Δ Total Loans Held For Investment ("LHFI") $ 5,724,773 $ 5,612,666 $ 4,143,195 $ 112,107 2.0 % $ 1,581,578 38.2 % Total Assets 7,628,268 7,101,338 5,324,626 526,930 7.4 2,303,642 43.3 Total De
Slide 6: Full Year Income Statement and Selected Ratios
ORIGIN BANCORP, INC. _______ Income Statement Year Ended YoY $ Δ YoY % ΔDecember 31, 2020 December 31, 2019 Net Interest Income $ 191,536 $ 173,712 $ 17,824 10.3 % Provision for Credit Losses 59,900 9,568 50,332 526.0 Noninterest Income 64,652 46,478 18,174 39.1 Noninterest Expense 151,935 144,074 7
Slide 7: Texas Growth Story
ORIGIN BANCORP, INC. _______ 7 $1,218 $1,311 $1,741 $1,956 $2,562 $874 $884 $1,067 $1,127 $1,553 $344 $427 $674 $829 $1,009 DFW Houston 2016 2017 2018 2019 2020 Deposit Trends by Texas Market Loan Trends by Texas Market TEXAS GROWTH STORY Texas Franchise Highlights DOLLARS IN MILLIONS • Market share
Slide 8: Supporting Our Customers - Forbearance and PPP Loans
ORIGIN BANCORP, INC. _______ 8 COVID-19 LHFI Forbearances 6/30/2020 9/30/2020 12/31/2020 Industry Forbearance Amount % of LHFI(1) Forbearance Amount % of LHFI(1) Forbearance Amount % of LHFI(1) Hotel $ 59,258 92.5 % $ 58,482 91.4 % $ 21,959 34.7 % Energy 6,776 10.8 870 1.6 676 1.7 Non-Essential Reta
Slide 9: Supporting Our Customers - Leveraging Technology
ORIGIN BANCORP, INC. _______ 9 MOBILE FEATURE ADOPTION RATES(1) SUPPORTING OUR CUSTOMERS - LEVERAGING TECHNOLOGY ZELLE® USERS 75.6% GROWTH ZELLE® TRANSFERS 106.1% GROWTH 32.0% TRANSFER ADOPTION % ORIGIN BANK 28.5% INDUSTRY BENCHMARK 25.4% DEPOSIT ADOPTION % ORIGIN BANK 19.5% INDUSTRY BENCHMARK 7.6%
Slide 10: Deposit Trends
ORIGIN BANCORP, INC. _______ 10 $4,203 $4,325 $4,964 $5,376 $1,150 $1,098 $1,579 $1,634 $1,686 $2,088 $2,283 $2,410 $2,704 $2,869$162 $162 $224 $307 $651 $803 $782 $752 $731 $678 $5,884 Noninterest-bearing Interest-bearing Brokered Time Deposits 4Q2019 1Q2020 2Q2020 3Q2020 4Q2020 Deposits by State (
Slide 11: Well Diversified Loan Portfolio
ORIGIN BANCORP, INC. _______ Mtg. Warehouse: 21% Real Estate & Construction: 8% Finance & Insurance: 5% Transportation: 3% Consumer Svc: 2% Retail Dealer: 2% Healthcare: 2% Banks: 2% Restaurants: 1% Professional Svc: 1% Commercial Svc: 1% Entertainment: 1% Gov & Edu: 1% Misc: 7% Owner Occupied Const
Slide 12: Deep Dive - Selected Sectors
ORIGIN BANCORP, INC. _______ 12 LHFI(2) at 12/31/2020 Non-Essential Retail: 3.4% Assisted Living: 2.7% Restaurant: 2.3% Hotel: 1.2% Energy: 0.8% Outstanding Balance (dollars in thousands) 12/31/2019 3/31/2020 6/30/2020 9/30/2020 12/31/2020 Hotel $ 61,846 $ 63,264 $ 64,043 $ 63,951 $ 63,218 Energy 69
Slide 13: Hotel Sector
ORIGIN BANCORP, INC. _______ Hilton: 31% Marriott: 26% Hyatt: 18% Choice: 12% Private Label: 6% IHG: 6% HOTEL SECTOR 13 Hotel Stats: • Balance represented 1.2% of total LHFI excl. PPP loans • Past due: $0; Classified loans: $0; NPL: $0 • No conference center hotels • Total forbearance amount: $22.0
Slide 14: Energy Sector
ORIGIN BANCORP, INC. _______ 14 Energy Stats: • Balance represented 0.8% of total LHFI excl. PPP loans • Past due(2): $1.5 million; Classified loans: $2.2 million; NPL: $1.5 million • No exploration & production lending exposure • Total forbearance amount: $676,000 • Pre-COVID-19 energy sector LTV 7
Slide 15: Non-Essential Retail Sector
ORIGIN BANCORP, INC. _______ National Credit Tenant: 55% CRE Retail Stores: 39% Retail Shopping: 6% NON-ESSENTIAL RETAIL SECTOR 15 Non-Essential Retail Stats: • Balance represented 3.4% of total LHFI excl. PPP loans • Past due: $2.6 million; Classified loans: $3.4 million; NPL: $3.0 million • Total
Slide 16: Restaurant Sector
ORIGIN BANCORP, INC. _______ 16 Restaurant Stats: • Balance represented 2.3% of total LHFI excl. PPP loans • Past due: $0; Classified loans: $3.3 million; NPL: $0 • Total forbearance amount: $7.8 million • Pre-COVID-19 restaurant sector LTV 54% and DSCR 1.40x RESTAURANT SECTOR Restaurant Portfolio a
Slide 17: Assisted Living Sector
ORIGIN BANCORP, INC. _______ 17 Assisted Living Stats: • Balance represented 2.7% of total LHFI excl. PPP loans • Past due(2): $1.5 million; Classified loans: $1.5 million; NPL: $1.5 million • Total forbearance amount: $11.5 million • Pre-COVID-19 assisted living sector LTV 75% and DSCR 0.31x$141.7M
Slide 18: Credit Quality
ORIGIN BANCORP, INC. _______ 1.6% 1.7% 2.0% 2.0% 2.1% Classified Loans / Total Loans excl. PPP Loans Net Charge-Offs / Average LHFI excl. PPP Loans (annualized) 4Q2019 1Q2020 2Q2020 3Q2020 4Q2020 0.26% 0.11% 0.58% 0.15% 0.14% 0.75% 0.74% 0.63% 0.60% 0.50% 0.72% 1.14% 0.50% 0.58% 0.50% Nonperforming
Slide 19: Yields, Costs and LHFI Profile
ORIGIN BANCORP, INC. _______ 19 LHFI: Fixed \ Variable (by Index) at 12/31/2020 • The cost of interest bearing deposits declined 18 bps, the cost of total deposits declined 11 bps and the cost of borrowings increased 40 bps during 4Q2020. • Variable rate LHFI made up 59% of total LHFI incl. PPP loan
Slide 20: Net Interest Income and NIM Trends
ORIGIN BANCORP, INC. _______ 20 DOLLARS IN THOUSANDS $44,095 $42,810 $46,290 $50,617 $51,819 $44,095 $42,810 $43,238 $47,187 $48,542$3,052 $3,430 $3,277 3.58% 3.44% 3.09% 3.18% 3.07% 3.15% 3.28% 3.17% Net Interest Income excl. PPP Loans PPP Loans Net Interest Income NIM (FTE) NIM (FTE) excl. PPP Loa
Slide 21: Net Interest Income / Noninterest Income
ORIGIN BANCORP, INC. _______ 21 $10,818 $12,144 $19,076 $18,051 $15,381 $3,488 $3,320 $2,990 $3,268 $3,420 $3,359 $2,769 $10,717 $9,523 $6,594 $2,428 $3,687 $3,109 $3,218 $2,732 $151 $676 $1,527 $110 $233 $1,392 $1,692 $733 $1,932 $2,402 Service Charges & Fees Mortgage Banking Revenue Insurance Comm
Slide 22: Noninterest Expense
ORIGIN BANCORP, INC. _______ $36,534 $36,097 $38,220 $38,734 $38,884 $22,074 $21,988 $24,045 $22,597 $22,475 $4,241 $4,221 $4,267 $4,263 $4,271 $1,801 $2,003 $2,075 $2,065 $2,178 $1,632 $1,441 $1,344 $1,367 $1,472 $1,400 $1,142 $1,509 $1,809 $1,856 $5,386 $5,302 $4,980 $6,633 $6,632 Salaries and Emp
Slide 23: Capital
ORIGIN BANCORP, INC. _______ Tier 1 Capital to Average Assets (Leverage Ratio) 10.6% 10.4% 8.8% 8.8% 9.0% 10.9% 10.7% 9.1% 9.2% 8.6% 10.9% 10.7% 9.1% 9.2% 8.6% Bank Level Company Level 4Q2019 1Q2020 2Q2020 3Q2020 4Q2020 Tier 1 Capital to Risk-Weighted Assets 11.6% 10.7% 10.1% 9.6% 10.5% 11.9% 11.0%
Slide 24: Reconciliation of Non-GAAP Financial Measures
ORIGIN BANCORP, INC. _______ Calculation of Tangible Common Equity: 4Q2020 3Q2020 4Q2019 Total common stockholders' equity $ 647,150 $ 627,637 $ 599,262 Less: goodwill and other intangible assets, net 30,480 30,717 31,540 Tangible Common Equity $ 616,670 $ 596,920 $ 567,722 Calculation of Tangible A
Slide 25: Reconciliation of Non-GAAP Financial Measures YTD
ORIGIN BANCORP, INC. _______ Year Ended December 31, 2020 December 31, 2019 Calculation of PTPP Earnings: Net Income $ 36,357 $ 53,882 Plus: provision for credit losses 59,900 9,568 Plus: income tax expense 7,996 12,666 PTPP Earnings $ 104,253 $ 76,116 Calculation of PTPP ROAA and PTPP ROAE: Divided