Origin Bancorp, Inc. · NYSE:OBK
Origin Bancorp — Q2 2019 Earnings Presentation
15 slides from Origin Bancorp's earnings presentation, Jul 24, 2019
Slide 1: 2Q Twenty19 Earnings Presentation
2Q TWENTY19 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 Bancorp, Inc.'s ("Origin" or the "Company") fu
Slide 3: Company Snapshot
COMPANY SNAPSHOT • Origin Bank was founded in 1912 • OBNK is headquartered in Ruston, LA 9 • 43 banking centers operating across Texas, 19 6 Louisiana & Mississippi • Strong commercial focus with 40% C&I and 43% CRE lending mix across our footprint FINANCIAL HIGHLIGHTS 9 2Q2019 DOLLARS IN MILLIONS T
Slide 4: Second Quarter Financial Highlights
SECOND QUARTER FINANCIAL HIGHLIGHTS 2019 HIGHLIGHTS DOLLARS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS Linked 2Q2019 1Q2019 2Q2018 Q Δ YoY Δ • Net interest income increased by Balance Sheet $943,000, or 2.2%, over the previous Total Loans Held For Investment $ 3,984,597 $ 3,838,343 $ 3,372,096 3.8 % 18.
Slide 5: Historical Average Interest Earning Assets & NIM; Growth & Profitability
HISTORICAL AVERAGE INTEREST EARNING ASSETS & NIM (FTE) GROWTH & PROFITABILITY DOLLARS IN MILLIONS 4.70% $4,800 $4,719 ) $ ( S ) T E E • Consistent increase in average T $4,545 $4,600 F S ( 4.40% S N interest-earning assets A I $4,433 G G N R $4,400 I A N M • Strong growth in average loan R A T 4.10%
Slide 6: Ability to Leverage Operating Infrastructure
ABILITY TO LEVERAGE OPERATING EFFICIENCY INFRASTRUCTURE 110.00% 3.50% • Cost-effective, centralized back office functions are performed in our North Louisiana operations 3.19% center 2.97% 2.95% 2.94% 2.95% 3.00% • Infrastructure exists to support asset growth and increasing 90.00% profitability S T
Slide 7: Diversified & Growing Revenue Streams
DIVERSIFIED & GROWING NET REVENUE DISTRIBUTION – 2Q2019 REVENUE STREAMS Service Charges & Fees: 6% Mortgage Banking Revenue: 6% • Meaningful noninterest income supplements interest-related Insurance Commission & Fee Income: 6% revenue Other: 3% • Comprehensive product suite delivered with high quali
Slide 8: Our Markets
OUR MARKETS AVERAGE DEPOSITS & DEPOSIT COST DOLLARS IN MILLIONS 200 bps $3,870 $3,658 $3,458 170 bps $3,235 $3,337 • DIVERSE GEOGRAPHIC t s o 140 bps FOOTPRINT C t i 110 bps s o p • Attractive combination of stable, e 80 bps D low cost markets and markets 50 bps experiencing metropolitan growth 20 b
Slide 9: Diversified Commercial Loan Composition
DIVERSIFIED COMMERCIAL LOAN COMPOSITION – 2Q2019 LOAN PORTFOLIO DOLLARS IN MILLIONS • Focus on commercial lending to Other: 1% middle market and small businesses as well as their owners and executives C&D: 13% • Commercial loans represented an Residential: 16% Owner Occupied aggregate of 83% of our
Slide 10: Growing Core Deposit Franchise
GROWING CORE DEPOSIT DEPOSIT COMPOSITION – 2Q2019 FRANCHISE Savings: 4% Brokered: 4% • Continued success in growing Noninterest- core deposits, especially bearing Time deposits: demand: 26% noninterest-bearing deposits 22% Interest- • Low cost deposits driven by bearing legacy North Louisiana franch
Slide 11: Liquidity Measures
LIQUIDITY MEASURES Total Loans / Total Deposits 104.88% 106% • A key priority for our markets is to 101.54% deliver strong, high quality loan 99.55% 100% growth while focusing on core 97.98% deposit growth. 93.52% 94% • Stable deposit sources are primarily used to fund our loans 88% held for investm
Slide 12: Underwriting & Credit Culture
UNDERWRITING & CREDIT NPLs(1) / LOANS HFI CULTURE 0.84% 0.79% 0.79% • Excellent track record of credit 0.74% 0.76% quality across core commercial lending portfolio • Seasoned lenders with strong credit backgrounds and significant experience in our markets 2Q2018 3Q2018 4Q2018 1Q2019 2Q2019 • Central
Slide 13: Strong Capital Position
STRONG CAPITAL POSITION TOTAL RISK-BASED CAPITAL DOLLARS IN MILLIONS $39 $35 • Robust capital levels with $47 $39 opportunity for deployment $44 through organic growth and strategic acquisitions $529 $556 $433 $379 $423 • Management focused on effectively deploying capital to enhance returns 2015 20
Slide 14: Strategic Priorities
Increase scale across the franchise, and particularly in Houston Improve operational efficiency and increase profitability Focused effort to improve margin and risk-adjusted returns Grow client base and continue capturing Continue our disciplined approach to market share 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 2Q2019 1Q2019 4Q2018 3Q2018 2Q2018 Calculation of Tangible Common Equity: Total Common Stockholders' Equity $ 584,293 $ 568,122 $ 549,779 $ 531,919 $ 519,356 Less: Goodwill and Other Intangible Assets, Net 3