Origin Bancorp, Inc. · NYSE:OBK
Origin Bancorp — Investor Presentation (July 2018)
21 slides from Origin Bancorp's investor presentation, Jul 30, 2018
Slide 1: Origin Bancorp, Inc. 2018 Overview Presentation
ORIGIN BANCORP, INC. 20 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’s future financial performance, business and g
Slide 3: Note on data as of 6/30/18 and non-GAAP measures
Note: All financial information and other bank data as of 6/30/18. (1) As used in this presentation, tangible common equity and tangible common equity/tangible assets are non-GAAP financial measures. For a reconciliation of these non-GAAP financial measures to their comparable GAAP measures, see sli
Slide 4: Proven Leadership Team
PROVEN LEADERSHIP TEAM DRAKE MILLS YEARS OF EXPERIENCE Chairman, President & CEO ORIGIN BANKING 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. 34 34 STEVE BROLLY Chief Financial Officer Has served as Chief Fina
Slide 5: Board of Directors
YEARS OF BANKING OR NAME INDUSTRY BOARD EXPERIENCE
Slide 6: Culture strategies
DIRECTOR OF CULTURE STRATEGIES CULTURE DAY FOR NEW HIRES CULTURE COUNCIL PROJECT ENRICH THE BLUEPRINT DREAM MANAGER ORIGIN EXPERIENCE RETURN ON QUALITY
Slide 7: Central Mississippi and North Louisiana markets
Stable economy located in the I-20 corridor providing consistent growth over the Centered around Jackson, Central Mississippi represents the most attractive years environment for business and economic growth in the state Recognized as most competitive area in the United States by KPMG Competitive La
Slide 8: Dallas/Fort Worth and Houston markets
Fourth largest MSA in the U.S. with approximately 7.4 million residents and Fifth largest MSA in the U.S. with approximately 7.0 million residents expected growth to 11 million by 2040 Expected to grow between one and two million residents per decade through 2040 Ranked first in U.S. in year-over-ye
Slide 9: Deposits by market
33% 49% 17% 15% 50% 36% $2,239 $2,269 $2,113 $1,977 $448 $1,804 $587 $1,167 $1,223 $827 $1,234 $411 $23 $80 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018Q2 Dallas / Fort Worth Central Mississippi Houston
Slide 10: Second Quarter Financial Highlights
SECOND QUARTER FINANCIAL HIGHLIGHTS 2018 HIGHLIGHTS DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA Net interest income was at its highest level ever for our company, increasing by $2.4 million, or 7.0% over the linked quarter Continued improvement in net interest margin to 3.74% on a tax equivalent bas
Slide 11: Net interest margin and loan yield
$4,100 4.00% $4,055 3.90% $4,000 $3,897 3.80% $3,900 $3,850 3.74% 3.70% $3,793 $3,803 $3,800 3.68% 3.60% 3.60% 3.62% $3,700 MARGIN (FTE) INTEREST NET 3.50% AVERAGE INTEREST EARNING ASSETS ($) ASSETS EARNING INTEREST AVERAGE 3.47% $3,600 3.40% 2017Q2 2017Q3 2017Q4 2018Q1 2018Q2 $3,300 $3,284 6.00% $3
Slide 12: Interest rate sensitivity
33.1% 24.9% 16.7% 8.4% 0.0% -8.6% -100 bps 0 bps 100 bps 200 bps 300 bps 400 bps 30.7% 23.1% 15.4% 7.8% 0.0% -8.2% -100 bps 0 bps 100 bps 200 bps 300 bps 400 bps Note: Change in net interest income assumes an instantaneous shock of interest rates.
Slide 13: Revenue mix and noninterest income
Insurance Other Commission & Fee 6 % Income 4 % Mortgage Banking Revenue 5 % Services Charges & Fees 7 % Net Interest Income 78 % . Noninterest Income 22% $48 $43 $45 $39 22% $37 20% 22% 13% 14% 78% 86% 87% 80% 78% 2017Q2 2017Q3 2017Q4 2018Q1 2018Q2 Net Interest Income Noninterest Income
Slide 14: Efficiency ratio and noninterest expense
6.00% 110.00% 103.94% 105.00% 5.00% 100.00% 95.00% 4.00% 3.92% 90.00% . 3.04% 3.02% 2.94% 3.00% 2.88% 85.00% NIE / AVERAGE ASSETS ASSETS AVERAGE NIE/ 82.41% 80.00% EFFICIENCY RATIO EFFICIENCY 2.00% 75.00% 74.00% 70.00% 1.00% . 67.06% 66.99% 65.00% 0.00% 60.00% 2017Q2 2017Q3 2017Q4 2018Q1 2018Q2
Slide 15: Deposit composition
Brokered Deposits 7% Noninterest Bearing Demand CDs 26% 19% Savings Interest Bearing 4% Demand 19% Money Market 25% . 2018Q2 Cost of Deposits: 0.75% $1,000 30.0% $950 $950 28.0% . $900 $833 $850 26.0% $800 $780 25.9% BEARING DEPOSITS DEPOSITS BEARING - 24.0% PERCENTDEPOSITS BEARING $750 $726 - 23.7%
Slide 16: Loan portfolio composition
Other 1% Residential 17% C&I 31% Total C&I C&D 39% . 11% Owner Occupied CRE 12% Non-Owner Occupied CRE 20% . Total CRE 43% Total Ending LHFI (6/30/18): $3,372
Slide 17: Asset quality
1.13% 0.83% 0.76% 0.73% 0.79% 2017Q2 2017Q3 2017Q4 2018Q1 2018Q2 1.57% 0.75% 0.36% 0.18% 0.01% 2017Q2 2017Q3 2017Q4 2018Q1 2018Q2 (1) Loans for Held For Investment (2) Based on annualized quarterly net charge-offs
Slide 18: Capital ratios
$542 $36 $470 $472 $423 $47 $39 $44 $505 $423 $433 $379 2015 2016 2017 6/30/18 Tier 1 Capital Tier 2 Capital 14.5% 13.5% 13.5% 12.5% 12.5% 12.4% 12.5% 12.1% 12.3% 11.5% 11.4% 10.5% 9.6% 9.4% 9.4% 9.5% 9.2% 9.6% 9.4% 9.3% 9.3% 8.5% 7.5% 2017Q2 2017Q3 2017Q4 2018Q1 2018Q2 TCE /TA CET1 Total RBC
Slide 19: Our Strategic Focus
OUR STRATEGIC FOCUS
Slide 20: Key Highlights
KEY HIGHLIGHTS ‘XPERIENCED LEADERSHIP AND STRONG INSIDER OWNERSHIP. TRACK RECORD OF ORGANIC GROWTH — ACTIVE FOOTPRINT @ STRONG CORE DEPOSIT FRANCHISE @ ovversiFied REVENUE STREAMS e@ POISED FOR SIGNIFICANT EARNINGS GROWTH @ PROVEN CREDIT CULTURE ACROSS CORE LOAN PORTFOLIO @ M&A OPPORTUNITY
Slide 21: Reconciliation of Non-GAAP Financial Measures
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES DOLLARS IN THOUSANDS, EXCEPT SHARE AND PER SHARE FIGURES 21