Origin Bancorp, Inc. · NYSE:OBK
Origin Bancorp — Q3 2018 Earnings Presentation
15 slides from Origin Bancorp's earnings presentation, Oct 24, 2018
Slide 1: 3Q Twenty18 Earnings Presentation
3Q TWENTY18 EARNINGS 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’s future financial performance, business and g
Slide 3: Today's Presenters
TODAY'S PRESENTERS DRAKE MILLS Chairman, President & CEO Has served as President of Origin Bancorp Inc. since 1998 and as CEO Since 2008. Was elected Chairman of the Board of Directors in 2012. STEVE BROLLY Chief Financial Officer Has served as Chief Financial Officer of Origin Bancorp, Inc. since J
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 40% C&I and 43% CRE lending mix across our footprint FINANCIAL HIGHLIGHTS 9 Q3 2018 DOLLARS IN MILLIONS
Slide 5: Third Quarter Financial Highlights
THIRD QUARTER FINANCIAL HIGHLIGHTS 2018 HIGHLIGHTS DOLLARS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS Linked YoY • Net interest income was at a historic 2018Q3 2018Q2 2017Q3 Q Δ Q Δ high for our company, increasing by Balance Sheet $2.3 million, or 6.3%, over the previous Total Loans Held For Investment
Slide 6: Balance Sheet Repositioned for Growth & Profitability
BALANCE SHEET AVERAGE INTEREST EARNING ASSETS & NIM (FTE) ) DOLLARS IN MILLIONS $ REPOSITIONED FOR ( S 4.00% T GROWTH & PROFITABILITY $4,230 E S ) S E $4,200 A T G F ( N 3.90% I N I $4,055 N R • Consistent increase in yields G A R E on earning assets A $4,000 T M S T 3.80% $3,897 E S 3.76% R E $3,85
Slide 7: Asset Sensitivity - % Change in Net Interest Income
ASSET SENSITIVITY - % CHANGE IN NET INTEREST INCOME (12/31/17) ASSET SENSITIVE BALANCE SHEET 33.1% 24.9% 16.7% • Well-positioned to benefit 8.4% from a rising rate environment —% • Substantial growth in rate (8.6)% sensitive assets over the last five years (19.0)% -200 bps -100 bps 0 bps 100 bps 200
Slide 8: Revenue Distribution – 2018Q3
REVENUE DISTRIBUTION – 2018Q3 DIVERSIFIED & GROWING REVENUE STREAMS Service Charges & Fees: 7.0% Mortgage Banking Revenue: 5.0% Insurance Commission & Fee • Meaningful noninterest income Income: 7.0% supplements spread related Other: 2.0% revenue • Comprehensive product suite delivered with high qua
Slide 9: Ability to Leverage Operating Infrastructure
ABILITY TO LEVERAGE OPERATING EFFICIENCY INFRASTRUCTURE 110.00% 6.00% 103.94% • Cost-effective, centralized back office functions provided 5.00% through operations centered in 100.00% North Louisiana 3.92% • Infrastructure exists to support 4.00% S significant growth in assets at T E O I 90.00% S T
Slide 10: Deposit Composition – 2018Q3
DEPOSIT COMPOSITION – 2018Q3 GROWING CORE DEPOSIT Savings: 4% FRANCHISE Brokered: 7% • Continued success in growing Noninterest- core deposits, especially bearing demand: 26% noninterest-bearing deposits. Time deposits: 21% Interest- • Low cost of deposits driven by bearing legacy North Louisiana de
Slide 11: Diversified Commercial Loan Composition – 2018Q3
DIVERSIFIED COMMERCIAL LOAN COMPOSITION – 2018Q3 LOAN PORTFOLIO DOLLARS IN MILLIONS • Focus on lending to middle Other: 1% market and small business, and their owners and executives C&D: 11% Residential: Owner Occupied CRE: 11% • Commercial loans represent 16% cumulative 83% of portfolio as of 9/30/
Slide 12: Underwriting & Credit Culture
UNDERWRITING & CREDIT NPLs / LOANS(1) CULTURE 0.83% 0.79% • Excellent track record of 0.76% 0.73% 0.74% strong credit quality across core commercial lending portfolio • Seasoned lenders with strong credit backgrounds and significant in-market 2017Q3 2017Q4 2018Q1 2018Q2 2018Q3 experience • Centraliz
Slide 13: Strong Capital Position
STRONG CAPITAL TOTAL RISK-BASED CAPITAL POSITION DOLLARS IN MILLIONS $37 $47 $39 $44 • Robust capital levels with opportunity for deployment $512 through organic growth and $433 $379 $423 strategic acquisitions • IPO net proceeds partially used to redeem SBLF 2015 2016 2017 09/30/18 preferred stock
Slide 14: Strategic Priorities
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 15: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures DOLLARS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS 2018Q3 2018Q2 2018Q1 2017Q4 2017Q3 Calculation of Tangible Common Equity: Total Stockholders' Equity $ 531,919 $ 519,356 $ 462,824 $ 455,342 $ 452,904 Less: Preferred Stock, Series SBLF — — 48,260 48,260 48,