Origin Bancorp, Inc. · NYSE:OBK
Origin Bancorp — Q3 2019 Earnings Presentation
17 slides from Origin Bancorp's earnings presentation, Nov 8, 2019
Slide 1: 3Q Twenty19 Overview Presentation
3Q TWENTY19 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: 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: Company Snapshot
COMPANY SNAPSHOT • Origin Bank was founded in 1912 • OBNK is headquartered in Ruston, LA 19 • 43 banking centers operating across Texas, 9 6 Louisiana & Mississippi FINANCIAL HIGHLIGHTS 9 3Q2019 DOLLARS IN MILLIONS TOTAL ASSETS $5,397 TOTAL LOANS HELD FOR INVESTMENT $4,188 TOTAL DEPOSITS $4,284 TOTA
Slide 5: Financial Highlights
FINANCIAL HIGHLIGHTS DOLLARS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS 3Q2019 2Q2019 3Q2018 Linked YoY Δ Balance Sheet Q Δ Total Loans Held For Investment $ 4,188,497 $ 3,984,597 $ 3,601,081 5.1 % 16.3% Total Assets 5,396,928 5,119,625 4,667,564 5.4 % 15.6% Total Deposits 4,284,317 3,855,012 3,727,158
Slide 6: Interest Income, Net Interest Income and NIM Trends
INTEREST INCOME, NET INTEREST INCOME AND NIM TRENDS DOLLARS IN MILLIONS $170 $59 $57 $53 $54 $49 $135 $130 $45 $42 $42 $43 $112 $111 $39 $96 3.82% 3.80% 3.73% 3.73% 3.76% 3.70% 3.69% 3.48% 3Q2017 3Q2018 3Q2019 3Q2018 4Q2018 1Q2019 2Q2019 3Q2019 Year-To-Date Quarter-To-Date Interest Income Net Intere
Slide 7: Avg. Interest Earning Assets, Avg. LHFI, Yield on LHFI & NIM
AVG. INTEREST EARNING ASSETS, AVG. LHFI, YIELD ON LHFI & NIM (FTE) DOLLARS IN MILLIONS $4,854 $4,545 $4,719 Drivers of NIM Change $4,230 $4,433 $3,890 $4,067 $3,650 $3,762 $3,459 • 1 basis point less impact of tax- 5.17% 5.28% 5.29% 5.23% 5.00% equivalents in 3Q19 vs 2Q19 3.76% 3.82% 3.80% 3.70% 3.6
Slide 8: Well Diversified Loan Portfolio
WELL DIVERSIFIED LOAN PORTFOLIO DOLLARS IN MILLIONS Loan Composition(1) at 09/30/19: $4,188 C&I, Owner Occupied C&D and CRE, Mtg. Warehouse: 53% Mtg. Warehouse: 7% Services: 6% Finance, Insurance & Retail: 4% Real Estate: 11% Office: 4% Construction: 4% Commercial & Owner Industrial ("C&I"): Occupie
Slide 9: Deposit Composition - 3Q2019
DEPOSIT COMPOSITION - 3Q2019 Time Deposits: 19% Noninterest-bearing Demand: 27% Savings: 3% Brokered: 8% Money Market: 27% Interest-bearing 3Q2019 Total Cost of Deposits: 1.16% Demand: 16% AVERAGE DEPOSITS & DEPOSIT COST DOLLARS IN MILLIONS 180 bps $3,906 $3,658 $3,337 $3,458 14% 150 bps $3,235 15%
Slide 10: Net Revenue Distribution - 3Q2019
NET REVENUE DISTRIBUTION - 3Q2019 Other: 5% Insurance Commission & Fee Income: 6% Mortgage Banking Revenue: 5% Service Charges & Fees: 6% Net Interest Income: 78% Noninterest Income: 22% OPERATING EFFICIENCY 110.00% 3.50% 110.00% 3.50% 3.19% ) 2.97% ) 3.00% 2.95% 2.95% 2.95% % 2.94% % 2.93% ( ) ( )
Slide 11: Noninterest Expense - Quarterly Variances
NONINTEREST EXPENSE - QUARTERLY VARIANCES DOLLARS IN THOUSANDS Quarterly Variance Analysis Noninterest Expense 3Q2019 2Q2019 (1) Salaries and employee benefits decreased in 3Q2019 due to a reduction in self-insured medical expenses Noninterest Expense (GAAP) $ 35,064 $ 37,095 (2) Communications decr
Slide 12: Adjusted Noninterest Expense Composition
(1) ADJUSTED NONINTEREST EXPENSE COMPOSITION DOLLARS IN THOUSANDS $40,000 $36,167 $36,277 $6,325 $5,779 $30,000 $1,724 $1,712 $1,763 $1,810 $4,274 $4,200 $20,000 $22,093 $22,764 $10,000 $0 3Q2019 2Q2019 Salaries and Employee Benefits Occupancy and Equipment, net Data Processing Office and Operations
Slide 13: Asset Quality Ratios
ASSET QUALITY RATIOS 0.84% Nonperforming 0.74% 0.79% 0.76% 0.75% Loans HFI / Loans HFI 3Q2018 4Q2018 1Q2019 2Q2019 3Q2019 0.37% 0.29% (1) Net Charge-Offs / Average Loans HFI 0.07% (annualized) (0.05)% (0.06)% 3Q2018 4Q2018 1Q2019 2Q2019 3Q2019 0.99% 0.90% 0.80% Past due Loans 0.69% 0.72% HFI / Loans
Slide 14: Capital Ratios
CAPITAL RATIOS Company Level Bank Level 12.5% 12.1% 13.0% 11.7% 11.3% 12.1% 12.5% 10.7% 10.5% 11.1% 11.6% 10.9% 10.4% 10.9% (1) TCE/TA Tier 1 Tier 1 Capital to Total Capital to Tier 1 Tier 1 Capital to Total Capital to Leverage Risk-Weighted Risk-Weighted Leverage Risk-Weighted Risk-Weighted Ratio A
Slide 15: Our Strategic Focus
OUR STRATEGIC FOCUS STRATEGIC FOCUS KEY ACTION ITEMS Increase scale across the franchise, Improve operational efficiency and particularly in Houston increase profitability Focused effort to improve margin and risk-adjusted returns Grow client base and continue capturing Continue our disciplined appr
Slide 16: Experienced Leadership and Strong Insider Ownership
EXPERIENCED LEADERSHIP AND STRONG INSIDER OWNERSHIP TRACK RECORD OF ORGANIC GROWTH 9 19 6 ATTRACTIVE FOOTPRINT STRONG DEPOSIT FRANCHISE 9 DIVERSIFIED REVENUE STREAMS PROVEN CREDIT CULTURE ACROSS LOAN PORTFOLIO POTENTIAL OPPORTUNISTIC M&A 16 ORIGIN BANCORP, INC. _______
Slide 17: Reconciliation of Non-GAAP Financial Measures
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES DOLLARS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS 3Q2019 2Q2019 1Q2019 4Q2018 3Q2018 Calculation of Tangible Common Equity: Total Common Stockholders' Equity $ 588,363 $ 584,293 $ 568,122 $ 549,779 $ 531,919 Less: Goodwill and Other Intangible Assets, Net 3