Origin Bancorp, Inc. · NYSE:OBK
Origin Bancorp — FY2019 Earnings Presentation
15 slides from Origin Bancorp's earnings presentation, Mar 2, 2020
Slide 1: 4Q and Full Year 2019 Overview Presentation
4Q AND FULL YEAR 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: Key Highlights
KEY HIGHLIGHTS EXPERIENCED LEADERSHIP AND STRONG INSIDER OWNERSHIP 9 19 6 TRACK RECORD OF ORGANIC GROWTH 9 ATTRACTIVE FOOTPRINT STRONG DEPOSIT FRANCHISE DIVERSIFIED REVENUE STREAMS DOLLARS IN MILLIONS DALLAS - FORT WORTH HOUSTON Entry: 2008 Entry: 2013 Loans: $1,402 Loans: $829 PROVEN CREDIT CULTURE
Slide 5: Financial Results - Fourth Quarter 2019
FINANCIAL RESULTS - FOURTH QUARTER 2019 DOLLARS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS Linked 4Q2019 3Q2019 4Q2018 Q Δ YoY Δ Income Statement Net Interest Income $ 44,095 $ 44,622 $ 42,061 (1.2)% 4.8 % Provision for Credit Losses 2,377 4,201 1,723 (43.4)% 38.0 % Noninterest Income 10,818 12,880 10,5
Slide 6: Financial Results - Full Year 2019
FINANCIAL RESULTS - FULL YEAR 2019 DOLLARS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS As of and Years Ended December 31, YoY $ Δ YoY % Δ Balance Sheet 2019 2018 Total Loans Held For Investment ("LHFI") $ 4,143,195 $ 3,789,105 $ 354,090 9.3 % Total Assets 5,324,626 4,821,576 503,050 10.4 % Total Deposits
Slide 7: Net Interest Income and NIM Trends
NET INTEREST INCOME AND NIM TRENDS DOLLARS IN THOUSANDS • Net interest income increased $2.0 million from 4Q18 to 4Q19, Yield on LHFI and decreased $500 thousand from 3Q19 to 4Q19. 5.50% 5.50% • Asset sensitive balance sheet throughout 2019 lead to quarterly 5.28% 5.31% NIM compression of 24 bps fro
Slide 8: Net Revenue Distribution
NET REVENUE DISTRIBUTION DOLLARS IN THOUSANDS Net Interest Income \ Noninterest Income Noninterest Income $12,880 $57,502 $54,913 $11,604 $1,614 $53,630 $54,145 $11,176 $52,649 $10,818 $12,880 $10,588 $1,661 $1,281 $1,351 $11,176 $10,818 $10,588 $11,604 $1,392 $511 $172 $2,171 $151 $3,203 $299 $3,03
Slide 9: Noninterest Expense Composition
NONINTEREST EXPENSE COMPOSITION DOLLARS IN THOUSANDS $37,095 $36,534 $35,023 $35,381 $35,064 • Improving trend in efficiency ratio, coupled with a decline in the ratio of NIE to average assets as a result of expense stabilization in $6,472 $6,786 $5,656 2019. $6,505 $5,792 $1,849 • Efficiency improv
Slide 10: Deposits
DEPOSITS Deposits Loans & Deposits by State at 12/31/19 DOLLARS IN MILLIONS Loans Deposits $4,284 $4,229 $3,783 $3,898 $3,855 30% 45% $820 $791 $819 $840 $796 $330 $153 $332 $328 $139 $1,979 $2,207 $1,704 $1,773 $1,873 16% $1,155 $951 $978 $1,003 $1,078 54% 11% 44% 4Q2018 1Q2019 2Q2019 3Q2019 4Q2019
Slide 11: Well Diversified Loan Portfolio
WELL DIVERSIFIED LOAN PORTFOLIO LHFI at 12/31/19 LHFI: Fixed \ Variable (by Index) at 12/31/19 DOLLARS IN MILLIONS Amounts % of Total Residential & Other: 17% Fixed $ 1,661 40% Commercial & Industrial ("C&I"): 1 month LIBOR 1,117 27% 32% 12 month LIBOR 254 6% Construction/ Land/Land Prime 1,047 25%
Slide 12: Asset Quality Trends
ASSET QUALITY TRENDS 0.99% 0.90% 0.84% 0.80% 0.79% 0.76% 0.75% 0.72% 0.75% 0.72% 0.37% 0.29% 0.26% 0.07% (0.06)% 4Q2018 1Q2019 2Q2019 3Q2019 4Q2019 Nonperforming LHFI / LHFI Past due LHFI / LHFI Net Charge-Off s 1/ Average LHFI (annualized) 1 Based on annualized quarterly net charge-offs. Year-to-da
Slide 13: Capital Ratios
CAPITAL RATIOS Company Level Bank Level 3Q2019 4Q2019 Proforma w/ Sub-Debt 3Q2019 4Q2019 Proforma w/ Sub-Debt 14.2% 12.5% 12.8% 11.6% 11.9% 11.9% 10.4% 10.7% 10.6% 10.9% 10.9% 10.8% 13.8% 11.6% 11.6% 12.1% 12.4% 10.5% 10.6% 10.4% 11.3% 1 TCE/TA Tier 1 Tier 1 Capital to Total Capital to Tier 1 Tier 1
Slide 14: 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 defend margin and risk- adjusted returns Grow client base and continue capturing Continue our disciplined appr
Slide 15: Reconciliation of Non-GAAP Financial Measures
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES DOLLARS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS 4Q2019 3Q2019 2Q2019 1Q2019 4Q2018 Calculation of Tangible Common Equity: Total Common Stockholders' Equity $ 599,262 $ 588,363 $ 584,293 $ 568,122 $ 549,779 Less: Goodwill and Other Intangible Assets, Net 3