Origin Bancorp, Inc. · NYSE:OBK
Origin Bancorp — Q3 2018 Earnings Presentation
17 slides from Origin Bancorp's earnings presentation, Nov 6, 2018
Slide 1: Origin Bancorp, Inc. 3Q Twenty18 Presentation
ORIGIN BANCORP, INC. 3Q TWENTY18 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: Our culture is a true differentiator
At Origin, we believe our culture is a true differentiator across our footprint. It defines all that we do and permeates throughout our organization. It allows us to attract the best bankers in our markets, and it drives our philosophy of relationship banking. From our mission, vision, and values to
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: Average Interest Earning Assets & NIM
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 from a rising rate 8.4% 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 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: Average Deposits & Deposit Cost; Our Markets
AVERAGE DEPOSITS & DEPOSIT COST OUR MARKETS DOLLARS IN MILLIONS $3,636 150 bps $3,458 $3,235 $3,337 125 bps $2,814 DIVERSE GEOGRAPHIC FOOTPRINT t s 100 bps o C t i s 75 bps Attractive combination of stable, low o p e cost markets and metropolitan growth D 50 bps markets 25 bps Expansion through orga
Slide 11: 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 12: 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 13: 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 14: Strong Capital
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 15: Strategic priorities: scale, efficiency and growth
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 16: Key Highlights
KEY HIGHLIGHTS “hence prbeasir AND STRONG woe OWNERSHIP TRACK RECORD OF ORGANIC GROWTH Beaman FOOTPRINT ®@ STRONG CORE DEPOSIT FRANCHISE e@ DIVERSIFIED REVENUE STREAMS e@ POISED FOR EARNINGS GROWTH @ PROVEN CREDIT CULTURE ACROSS CORE LOAN PORTFOLIO @ ve orrortuniry
Slide 17: 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,