Origin Bancorp, Inc. · NYSE:OBK
Origin Bancorp — Q3 2020 Earnings Presentation
23 slides from Origin Bancorp's earnings presentation, Oct 28, 2020
Slide 1: Origin Bancorp, Inc. 3Q Twenty20 Investor Presentation
ORIGIN BANCORP, INC. 3Q TWENTY20 INVESTOR PRESENTATION ORIGIN BANCORP, INC. _______
Slide 2: Forward-Looking Statements and Non-GAAP Measures
FORWARD-LOOKING STATEMENTS AND NON-GAAP MEASURES 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") futur
Slide 3: Company Snapshot
COMPANY SNAPSHOT • Origin Bancorp, Inc., the holding company for Origin Bank, is headquartered in Ruston, LA • Origin Bank was founded in 1912 • 43 banking centers operating across Texas, Louisiana & Mississippi 9 19 6 CONSOLIDATED FINANCIAL HIGHLIGHTS 9 3Q2020 DOLLARS IN MILLIONS TOTAL ASSETS $7,10
Slide 4: A Unique & Defined Culture
A UNIQUE & DEFINED CULTURE 4 ORIGIN BANCORP, INC. _______
Slide 5: Financial Results - Third Quarter 2020
FINANCIAL RESULTS - THIRD QUARTER 2020 DOLLARS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS Linked Qtr Linked Qtr YoY YoY Balance Sheet 3Q2020 2Q2020 3Q2019 $ Δ % Δ $ Δ % Δ Total Loans Held For Investment ("LHFI") $ 5,612,666 $ 5,312,194 $ 4,188,497 $ 300,472 5.7 % $ 1,424,169 34.0 % Total Assets 7,101,33
Slide 6: Financial Results - Year to Date 2020
FINANCIAL RESULTS - YEAR TO DATE 2020 DOLLARS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS YoY YoY Income Statement YTD 2020 YTD 2019 $ Δ % Δ Net Interest Income $ 139,717 $ 129,617 $ 10,100 7.8 % Provision for Credit Losses 53,567 7,191 46,376 644.9 Noninterest Income 49,271 35,660 13,611 38.2 Noninteres
Slide 7: Supporting Our Customers - Forbearance and PPP Loans
SUPPORTING OUR CUSTOMERS - FORBEARANCE AND PPP LOANS DOLLARS IN THOUSANDS COVID-19 LHFI Forbearances 6/30/2020 8/31/2020 9/30/2020 Estimated 12/31/2020 Forbearance Forbearance Forbearance Forbearance Industry Amount % of LHFI(1) Amount % of LHFI(1) Amount % of LHFI(1) Amount % of LHFI(1) Hotel $ 59,
Slide 8: Deposit Trends
DEPOSIT TRENDS DOLLARS IN MILLIONS Average Deposits Loans & Deposits by State at 9/30/2020 $5,376 (2) $4,964 Loans Deposits $731 $4,203 $4,325 $3,977 $752 $307 $224 26% $803 $782 $827 $162 $162 44% $168 $2,704 $2,410 12% $2,283 $1,906 $2,088 10% $1,579 $1,634 $1,076 $1,150 $1,098 62% 3Q2019 4Q2019 1
Slide 9: Well Diversified Loan Portfolio
WELL DIVERSIFIED LOAN PORTFOLIO DOLLARS IN MILLIONS Loan Composition at 9/30/2020: (1) $5,060 C&I, Owner Occupied C&D and CRE, Mtg. Warehouse: (1) $2,877 Owner Occupied Mtg. Warehouse: 20% Real Estate & Construction: 9% Construction/Land/Land Finance & Insurance: 5% Commercial & Development ("C&D"):
Slide 10: Deep Dive - Selected Sectors
DEEP DIVE - SELECTED SECTORS(1) LHFI(2) at 9/30/2020 • LHFI (excl. PPP loans net of deferred fees and All Other LHFI: costs) were $5.06 billion at 9/30/2020, an increase 89.0% of $297.3 million, or 6.2%, compared to 6/30/2020, and an increase of $917.1 million, or 22.1%, Non-Essential compared to 12
Slide 11: Hotel Sector
HOTEL SECTOR(1) Hotel Portfolio at 9/30/2020 Hotel Stats: Bed-and-Breakfast: 2% IHG: 6% • Balance represented 1.3% of total LHFI excl. PPP loans Private • Past due: 0%; NPL: $0 Label: 6% • No conference center hotels Hilton: 30% Choice: 12% • Total forbearance amount: $58,482K $64.0M ◦ 40% in full f
Slide 12: Energy Sector
ENERGY SECTOR (1) Energy Portfolio at 9/30/2020 Energy Stats: • Balance represented 1.1% of total LHFI excl. PPP loans Midstream: 18% • Past due: 4.0%; NPL: $2.2 million • No exploration & production lending exposure • Total forbearance amount: $870K $55.5M ◦ 100% in partial forbearance • Pre-COVID-
Slide 13: Non-Essential Retail Sector
NON-ESSENTIAL RETAIL SECTOR (1) Non-Essential Retail Portfolio at 9/30/2020 Non-Essential Retail Stats: • Balance represented 3.0% of total LHFI excl. PPP loans Retail Shopping: 8% • Past due: 1.8%; NPL: $3.0 million • Total forbearance amount: $39,989K CRE ◦ 81% in full forbearance Retail Stores: 2
Slide 14: Restaurant Sector
RESTAURANT SECTOR(1) Restaurant Portfolio at 9/30/2020 Restaurant Stats: • Balance represented 2.7% of total LHFI excl. PPP loans • Past due: 0%; NPL: $0 Limited-Service • Total forbearance amount: $29,619K Restaurant: 32% Full Service Restaurant: 3… ◦ 83% in full forbearance $135.8M ◦ 17% in partia
Slide 15: Assisted Living Sector
ASSISTED LIVING SECTOR(1) Assisted Living Portfolio at 9/30/2020 Assisted Living Stats: • Balance represented 2.9% of total LHFI excl. PPP loans • Past due: 1.4%; NPL: $2.1 million Assisted Living Facilities: 100% • Total forbearance amount: $21,625K ◦ 53% in full forbearance $144.8M ◦ 47% in partia
Slide 16: Credit Quality
CREDIT QUALITY Asset Quality Trends 1.14% 2.0% 2.0% 1.7% 0.75% 0.75% 0.74% 1.6% 0.63% 0.60% 0.72% 0.72% 0.50% 0.58% 0.58% 0.26% 0.11% 0.15% 3Q2019 4Q2019 1Q2020 2Q2020 3Q2020 4Q2019 1Q2020 2Q2020 3Q2020 Nonperforming LHFI / LHFI excl. PPP loans Classified Loans / Total Loans excl. PPP Loans (1) Past
Slide 17: Net Interest Income and NIM Trends
NET INTEREST INCOME AND NIM TRENDS DOLLARS IN THOUSANDS Net Interest Income Changes - 3Q2020 $50,617 $46,290 $3,430 $44,622 $44,095 $451 $378 $69 $50,617 $42,810 $3,052 $47,187 $922 $44,622 $50,000 $2,692 $44,095 $42,810 $43,238 $(185) $46,290 $45,000 3.69% 3.58% 3.28% $40,000 3.44% 3.15% 3.18% 2Q20
Slide 18: Yields, Costs and LHFI Profile
YIELDS, COSTS AND LHFI PROFILE Yield on LHFI Cost of Funds 5.31% 1.59% 4.95% 4.85% 1.44% 5.23% 4.22% 4.20% 4.83% 1.25% 1.28% 4.44% 1.10% 4.09% 4.02% 1.05% 1.16% 3.25% 3.25% 2.18% 1.04% 0.79% 1.79% 0.95% 1.40% 0.61% 0.65% 0.54% 0.35% 0.54% 0.16% 0.42% 3Q2019 4Q2019 1Q2020 2Q2020 3Q2020 3Q2019 4Q2019
Slide 19: Net Revenue Distribution
NET REVENUE DISTRIBUTION DOLLARS IN THOUSANDS Net Interest Income \ Noninterest Income Noninterest Income $68,668 $65,366 $19,076 $733 $18,051 $57,502 $18,051 $54,913 $54,954 $1,527 $19,076 $1,932 $12,880 $10,818 $12,144 $110 $3,109 $3,218 $12,880 $12,144 $50,617 $46,290 $1,614 $44,622 $44,095 $42,8
Slide 20: Noninterest Expense Composition
NONINTEREST EXPENSE COMPOSITION DOLLARS IN THOUSANDS $38,220 $38,734 • Operating leverage reflects an improving trend in the efficiency ratio, coupled with a decline in the ratio of NIE to average assets primarily as a $36,534 $36,097 result of improved mortgage performance in recent quarters. $35,0
Slide 21: Capital
CAPITAL Tier 1 Capital to Risk-Weighted Assets Total Capital to Risk-Weighted Assets Bank Level Company Level Sub-debtSub-debt Impact Impact Bank Level Company Level Sub-debt Impact Bank Level Company Level Pro Forma (1) Pro Forma (1) 13.8% 11.9% 13.4% 13.1% 11.3% 11.6% 11.6% 12.8% 13.0% 12.9% 11.0%
Slide 22: Reconciliation of Non-GAAP Financial Measures
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES DOLLARS IN THOUSANDS Calculation of Tangible Common Equity: 3Q2020 2Q2020 3Q2019 Total common stockholders' equity $ 627,637 $ 614,781 $ 588,363 Less: goodwill and other intangible assets, net 30,717 30,953 31,842 Tangible Common Equity $ 596,920 $ 583,8
Slide 23: Reconciliation of Non-GAAP Financial Measures YTD
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES YTD DOLLARS IN THOUSANDS YTD 2020 YTD 2019 Calculation of PTPP Earnings: Net Income $ 18,805 $ 41,055 Plus: provision for credit losses 53,567 7,191 Plus: income tax expense 3,565 9,491 PTPP Earnings $ 75,937 $ 57,737 Calculation of PTPP ROAA and PTPP RO