EX-99.1 2 a12312019obnkexhibit991er.htm EXHIBIT 99.1 Exhibit

Exhibit 99.1
For Immediate Release

obnklogoa52.jpg

ORIGIN BANCORP, INC. REPORTS EARNINGS FOR FOURTH QUARTER AND 2019 FULL YEAR
RUSTON, Louisiana (January 22, 2020) - Origin Bancorp, Inc. (Nasdaq: OBNK) ("Origin" or the "Company"), the holding company for Origin Bank (the "Bank"), today announced net income of $12.8 million for the quarter ended December 31, 2019. This represents a decrease of $1.8 million from the quarter ended September 30, 2019, and a decrease of $351,000 from the quarter ended December 31, 2018. Diluted earnings per share for the quarter ended December 31, 2019, was $0.55, down $0.07 from the linked quarter and flat compared to the quarter ended December 31, 2018.
Net income for the year ended December 31, 2019, was $53.9 million, representing an increase of $2.3 million compared to the year ended December 31, 2018, reflecting a year-over-year increase in net interest income, offset by higher provision and noninterest expense. Diluted earnings per share for the year ended December 31, 2019, was $2.28, representing an increase of $0.08 from diluted earnings per share of $2.20 for the year ended December 31, 2018.
"We are pleased with what we have accomplished in 2019, and are proud of how our team was able to adapt to a changing rate environment, grow deposits and loans in a meaningful way and manage our company to build long-term value," said Drake Mills, Chairman, President and CEO of Origin Bancorp, Inc. "We remain committed to the successful execution of our strategy by driving deposit and loan growth, leveraging operational efficiencies and delivering shareholder value in 2020."

Financial Highlights
•
Diluted earnings per share for the quarter ended December 31, 2019, was $0.55, and $2.28 for the year ended December 31, 2019.
•
Net interest income was $44.1 million for the quarter ended December 31, 2019, compared to $44.6 million for linked quarter and $42.1 million for the quarter ended December 31, 2018. The net interest margin, fully tax equivalent, was 3.58% for the quarter ended December 31, 2019, compared to 3.69% for the linked quarter and 3.82% for the quarter ended December 31, 2018.
•
Tangible book value per common share was $24.18 at December 31, 2019, an 11.0% increase from $21.79 at December 31, 2018.
•
Total loans held for investment were $4.14 billion, a decrease of $45.3 million, or 1.1%, from September 30, 2019, and an increase of $354.1 million, or 9.3%, from December 31, 2018.
•
Total deposits decreased by $55.7 million, or 1.3%, from September 30, 2019, and increased by $445.5 million, or 11.8%, from December 31, 2018. Total deposits without brokered deposits increased $122.1 million, or 3.1%, from September 30, 2019, and increased $625.3 million, or 18.1%, from December 31, 2018.
•
For the seventh consecutive year Origin Bank was named one of the best banks to work for in the U.S. by American Banker and Best Companies Group, which identifies U.S. banks for outstanding employee satisfaction.
Results of Operations for the Three Months Ended December 31, 2019
Net Interest Income and Net Interest Margin
Net interest income for the quarter ended December 31, 2019, was $44.1 million, reflecting a decrease of $527,000, or 1.2%, compared to the linked quarter. The decrease was primarily driven by a decline in yields earned on loans held for investment, and was partially offset by a decrease in rates paid on interest-bearing liabilities and an increase in the overall average balance of loans held for investment. The aggregate 75 basis point decrease in the Federal Reserve target fed funds rate

1


during the second half of 2019 have impacted the yields earned on our commercial and industrial and residential real estate loan portfolios.
Interest-bearing deposit expense decreased to $11.1 million during the current quarter, compared to $11.6 million for the quarter ended September 30, 2019. The $567,000 decrease in interest-bearing deposit expense was primarily driven by falling interest rates and was partially offset by an increase in the average balance of savings and interest-bearing deposit accounts. Average savings and interest-bearing deposit transaction accounts increased by $176.9 million, or 8.5% and $315.9 million, or 16.3%, compared to the linked quarter and quarter ended December 31, 2018, respectively. Average noninterest-bearing deposits increased by $74.0 million, or 6.9%, compared to the linked quarter and by $149.3 million, or 14.9%, compared to December 31, 2018.
The fully tax-equivalent net interest margin ("NIM") was 3.58% for the fourth quarter of 2019, an 11 basis point decrease from the third quarter of 2019 and a 24 basis point decrease from the fourth quarter of 2018. The decline in the NIM was primarily caused by rate partially offset by a change in the mix of earning asset types. The rate paid on total interest-bearing liabilities for the quarter ended December 31, 2019, was 1.46%, representing a decrease of 19 basis points and an increase of seven basis points compared to the linked quarter and the quarter ended December 31, 2018, respectively. The yield earned on interest-earning assets decreased 25 basis points and 19 basis points compared to the linked quarter and the quarter ended December 31, 2018, respectively. The margin compression the Company experienced on a linked quarter basis was primarily caused by declining loan yields driven by interest rate cuts by the Federal Reserve in the second half of 2019 that were more fully reflected in loan yields during the fourth quarter of 2019 than during the third quarter of 2019, causing a linked quarter decline in NIM.
Noninterest Income
Noninterest income for the quarter ended December 31, 2019, was $10.8 million, a decrease of $2.1 million, or 16.0%, from the linked quarter. The decrease from the linked quarter was primarily driven by decreases of $1.2 million and $775,000 in swap fee income and insurance commission and fee income, respectively.
Lower transaction volume during the current quarter drove the decline in swap fee income compared to the linked quarter. The decrease in insurance commission and fee income was caused by the seasonality of policy renewals.
Noninterest Expense
Noninterest expense for the quarter ended December 31, 2019, was $36.5 million, an increase of $1.5 million, or 4.2%, compared to the linked quarter. The increase from the linked quarter was largely driven by increases of $1.1 million and $551,000 in regulatory assessments and salaries and employee benefits, respectively. During the linked quarter the Company received a FDIC assessment credit of approximately $1.0 million from the FDIC insurance fund, without the receipt of a comparable credit in the current quarter. The increase in salaries and employee benefits expense over the linked quarter was largely driven by a $755,000 increase in self-insured medical expense, partially offset by a decrease in incentive compensation expense.
Financial Condition
Loans
Total loans held for investment at December 31, 2019, were $4.14 billion, a decrease of $45.3 million, or 1.1%, compared to $4.19 billion at September 30, 2019, and an increase of $354.1 million, or 9.3%, compared to $3.79 billion at December 31, 2018. The decrease in loans held for investment when compared to September 30, 2019, was primarily reflected in Mortgage Warehouse Lines of Credit and Commercial and Industrial loans, which decreased $30.3 million and $24.1 million, respectively. The decrease in Mortgage Warehouse Lines of Credit is primarily due to the seasonality of these loans.
For the quarter ended December 31, 2019, average loans held for investment were $4.17 billion, an increase of $100.6 million, or 2.5%, from $4.07 billion for the linked quarter.
Deposits
Total deposits at December 31, 2019, were $4.23 billion, a decrease of $55.7 million, or 1.3%, compared to $4.28 billion at September 30, 2019, and an increase of $445.5 million, or 11.8%, compared to $3.78 billion, at December 31, 2018. Brokered deposits contributed a decrease of $177.8 million when compared to the linked quarter, and a decrease of $179.8 million when

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compared to December 31, 2018. The decreases were partially offset by increases in money market deposits of $126.7 million when compared to the linked quarter and $461.1 million when compared to December 31, 2018. Noninterest-bearing deposits decreased $77.0 million, or 6.7%, compared to the linked quarter and increased $126.7 million, or 13.3%, compared to the quarter ended December 31, 2018.
Average total deposits for the quarter ended December 31, 2019, increased by $225.3 million, or 5.7%, over the linked quarter, led by increases of $212.1 million in average business deposits.
For the quarter ended December 31, 2019, average noninterest-bearing deposits as a percentage of total average deposits was 27.4%, compared to 27.1% for the quarter ended September 30, 2019, and 26.9% for the quarter ended December 31, 2018.
Borrowings
Average borrowings for the quarter ended December 31, 2019, decreased by $133.9 million, or 28.1%, compared to the quarter ended September 30, 2019, and decreased by $16.8 million, or 4.7% over the quarter ended December 31, 2018. The decrease in average borrowings in the fourth quarter of 2019 compared to the linked quarter was due to the calling of the $100.0 million long-term Federal Home Loan Bank advance in the fourth quarter.
Stockholders' Equity
Stockholders' equity was $599.3 million at December 31, 2019, an increase of $10.9 million, or 1.9%, compared to $588.4 million at September 30, 2019, and an increase of $49.5 million, or 9.0%, compared to $549.8 million at December 31, 2018.
Credit Quality
The Company recorded provision expense of $2.4 million for the quarter ended December 31, 2019, compared to provision expense of $4.2 million for the linked quarter and $1.7 million for the quarter ended December 31, 2018. The decrease in provision expense from the linked quarter was primarily driven by a decrease in charge-offs and, to a lesser extent, a decrease in the general reserve due to the decrease in the loan portfolio. During the quarter ended December 31, 2019, the Company had net charge-offs of $2.8 million compared to net charge-offs of $3.0 million for the linked quarter.
The Company's net charge-off ratio for the year ended December 31, 2019, is 0.15%, compared to 0.13% for the year ended December 31, 2018. Total nonperforming loans held for investment were $31.1 million at December 31, 2019, compared to $31.5 million and $31.9 million at September 30, 2019, and December 31, 2018, respectively.
Allowance for loan losses as a percentage of total loans held for investment was 0.91% at December 31, 2019, compared to 0.89% and 0.90% at September 30, 2019, and December 31, 2018, respectively. Allowance for loan losses as a percentage of nonperforming loans held for investment was 120.46% at December 31, 2019, compared to 117.97% and 107.37% at September 30, 2019, and December 31, 2018, respectively.
Total past due loans held for investment, defined as loans 30 days past due or more, as a percentage of loans held for investment, was 0.72% at both December 31, 2019, and September 30, 2019, and 0.90% at December 31, 2018.
Accounting Standards Update No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments
The Company expects to recognize a one-time cumulative effect adjustment to the allowance for loan losses at the beginning of the first quarter of 2020 due to the adoption of Accounting Standards Update ("ASU") No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, increasing the allowance for credit losses by approximately $1.1 million. The Company does not expect its held-to-maturity or available for sale securities to be materially affected by the adoption of this ASU due to the nature of the portfolios. Our adjustment to the allowance for credit losses at the transition date may vary from our estimate due to refinements in the loss estimation models or factors.
Conference Call
Origin will hold a conference call to discuss its fourth quarter 2019 results on Thursday, January 23, 2020, at 8:00 a.m. Central Time (9:00 a.m. Eastern Time). To participate in the live conference call, please dial (844) 695-5516; International: (412) 902-6750 and request to be joined into the Origin Bancorp, Inc. (OBNK) call. A simultaneous audio-only webcast may be accessed via Origin's website at www.origin.bank under the Investor Relations, News & Events, Events & Presentations link or directly by visiting https://services.choruscall.com/links/obnk200123.html.
If you are unable to participate during the live webcast, the webcast will be archived on the Investor Relations section of Origin's website at www.origin.bank, under Investor Relations, News & Events, Events & Presentations.
About Origin Bancorp, Inc.
Origin is a financial holding company for Origin Bank, headquartered in Ruston, Louisiana, which provides a broad range of financial services to small and medium-sized businesses, municipalities, high net-worth individuals and retail clients from 43 banking centers, located from Dallas/Fort Worth, Texas across North Louisiana to Central Mississippi, as well as in Houston, Texas. For more information, visit www.origin.bank.

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Forward-Looking Statements
This press release 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 growth strategy, projected plans and objectives, including any expected purchases of its outstanding common stock, and related transactions and other projections based on macroeconomic and industry trends, including expectations regarding interest rate cuts by the Federal Reserve and the impact of those cuts on Origin's results of operations, and expectations regarding the Company's liquidity, including in connection with advances obtained from the FHLB, which are all subject to change and may be inherently unreliable due to the multiple factors that impact broader economic and industry trends, and any such changes may be material. Such forward-looking statements are based on various facts and derived utilizing important assumptions and current expectations, estimates and projections about Origin and its subsidiaries, any of which may change over time and some of which may be beyond Origin's control. Statements preceded by, followed by or that otherwise include the words "assuming," "believes," "expects," "anticipates," "intends," "projects," "estimates," "plans" and similar expressions or future or conditional verbs such as "will," "should," "would," "may" and "could" are generally forward-looking in nature and not historical facts, although not all forward-looking statements include the foregoing words. Further, certain factors that could affect Origin's future results and cause actual results to differ materially from those expressed in the forward-looking statements include: deterioration of Origin's asset quality; changes in real estate values and liquidity in Origin's primary market areas; the financial health of Origin's commercial borrowers and the success of construction projects that Origin finances; changes in the value of collateral securing Origin's loans; business and economic conditions generally and in the financial services industry, nationally and within Origin's primary market areas; Origin's ability to prudently manage its growth and execute its strategy; changes in management personnel; Origin's ability to maintain important deposit customer relationships; volatility and direction of market interest rates, which may increase funding costs or reduce interest-earning asset yields thus reducing margin; increased competition in the financial services industry, particularly from regional and national institutions; difficult market conditions and unfavorable economic trends in the United States generally, and particularly in the market areas in which Origin operates and in which its loans are concentrated, including the effects of declines in housing markets; an increase in unemployment levels and slowdowns in economic growth; Origin's level of nonperforming assets and the costs associated with resolving any problem loans including litigation and other costs; the credit risk associated with the substantial amount of commercial real estate, construction and land development, and commercial loans in Origin's loan portfolio; the extensive federal and state regulation, supervision and examination governing almost every aspect of Origin's operations including changes in regulations affecting financial institutions, including the Dodd-Frank Wall Street Reform and Consumer Protection Act and the rules and regulations being issued in accordance with this statute and potential expenses associated with complying with such regulations; Origin's ability to comply with applicable capital and liquidity requirements, including its ability to generate liquidity internally or raise capital on favorable terms, including continued access to the debt and equity capital markets; changes in the utility of Origin's non-GAAP liquidity measurements and its underlying assumptions or estimates; possible changes in trade, monetary and fiscal policies, laws and regulations and other activities of governments, agencies, and similar organizations; and the effects of weather and natural disasters such as floods, droughts, wind, tornadoes and hurricanes as well as effects from geopolitical instability and manmade disasters. For a discussion of these and other risks that may cause actual results to differ from expectations, please refer to the sections titled "Cautionary Note Regarding Forward-Looking Statements" and "Risk Factors" in Origin's most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission ("SEC") and any updates to those sections set forth in Origin's subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. If one or more events related to these or other risks or uncertainties materialize, or if Origin's underlying assumptions prove to be incorrect, actual results may differ materially from what Origin anticipates. Accordingly, you should not place undue reliance on any forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made, and Origin does not undertake any obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise. New risks and uncertainties arise from time to time, and it is not possible for Origin to predict those events or how they may affect Origin. In addition, Origin cannot assess the impact of each factor on Origin's business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. All forward-looking statements, expressed or implied, included in this communication are expressly qualified in their entirety by this cautionary statement. This cautionary statement should also be considered in connection with any subsequent written or oral forward-looking statements that Origin or persons acting on Origin's behalf may issue. Annualized, pro forma, projected and estimated numbers are used for illustrative purpose only, are not forecasts and may not reflect actual results.

Contact:    
Chris Reigelman, Origin Bancorp, Inc.
318-497-3177 / chris@origin.bank


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Origin Bancorp, Inc.
Selected Financial Data

 
At and for the three months ended
 
December 31,
 2019
 
September 30,
 2019
 
June 30,
2019
 
March 31,
2019
 
December 31,
 2018
 
 
 
 
 
 
 
 
 
 
Income statement and share amounts
(Dollars in thousands, except per share amounts, unaudited)
Net interest income
$
44,095

 
$
44,622

 
$
42,969

 
$
42,026

 
$
42,061

Provision for credit losses
2,377

 
4,201

 
1,985

 
1,005

 
1,723

Noninterest income
10,818

 
12,880

 
11,176

 
11,604

 
10,588

Noninterest expense
36,534

 
35,064

 
37,095

 
35,381

 
35,023

Income before income tax expense
16,002

 
18,237

 
15,065

 
17,244

 
15,903

Income tax expense
3,175

 
3,620

 
2,782

 
3,089

 
2,725

Net income
$
12,827

 
$
14,617

 
$
12,283

 
$
14,155

 
$
13,178

Basic earnings per common share
$
0.55

 
$
0.62

 
$
0.52

 
$
0.60

 
$
0.56

Diluted earnings per common share
0.55

 
0.62

 
0.52

 
0.60

 
0.55

Dividends declared per common share
0.0925

 
0.0925

 
0.0325

 
0.0325

 
0.0325

Weighted average common shares outstanding - basic
23,323,292

 
23,408,499

 
23,585,040

 
23,569,576

 
23,519,778

Weighted average common shares outstanding - diluted
23,529,862

 
23,606,956

 
23,786,646

 
23,776,349

 
23,715,919

 
 
 
 
 
 
 
 
 
 
Balance sheet data

 
 
 
 
 
 
 
 
Total loans held for investment
$
4,143,195

 
$
4,188,497

 
$
3,984,597

 
$
3,838,343

 
$
3,789,105

Total assets
5,324,626

 
5,396,928

 
5,119,625

 
4,872,201

 
4,821,576

Total deposits
4,228,612

 
4,284,317

 
3,855,012

 
3,898,248

 
3,783,138

Total stockholders' equity
599,262

 
588,363

 
584,293

 
568,122

 
549,779

 
 
 
 
 
 
 
 
 
 
Performance metrics and capital ratios
 
 
 
 
 
 
 
 
 
Yield on loans held for investment
4.95
%
 
5.23
%
 
5.29
%
 
5.28
%
 
5.17
%
Yield on interest earnings assets
4.56

 
4.81

 
4.85

 
4.86

 
4.75

Rate on interest bearing deposits
1.44

 
1.59

 
1.61

 
1.48

 
1.31

Rate on total deposits
1.04

 
1.16

 
1.19

 
1.11

 
0.96

Net interest margin, fully tax equivalent
3.58

 
3.69

 
3.70

 
3.80

 
3.82

Return on average stockholders' equity (annualized)
8.51

 
9.85

 
8.54

 
10.25

 
9.66

Return on average assets (annualized)
0.97

 
1.12

 
0.98

 
1.18


1.10

Efficiency ratio (1)
66.53

 
60.98

 
68.51

 
65.97

 
66.52

Book value per common share
$
25.52

 
$
25.06

 
$
24.58

 
$
23.92

 
$
23.17

Common equity tier 1 to risk-weighted assets (2)
11.75
%
 
11.43
%
 
11.93
%
 
12.05
%
 
11.94
%
Tier 1 capital to risk-weighted assets (2)
11.95

 
11.63

 
12.13

 
12.26

 
12.16

Total capital to risk-weighted assets (2)
12.77

 
12.45

 
12.97

 
13.10

 
12.98

Tier 1 leverage ratio (2)
10.91

 
10.88

 
11.10

 
11.23

 
11.21

____________________________
(1) 
Calculated by dividing noninterest expense by the sum of net interest income plus noninterest income.
(2) 
December 31, 2019, ratios are estimated and calculated at the Company level, which is subject to the capital adequacy requirements of the Federal Reserve Board.

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Origin Bancorp, Inc.
Selected Financial Data

 
Twelve Months Ended December 31,
(Dollars in thousands, except per share amounts)
2019
 
2018
Income statement and share amounts
(Unaudited)
 
 
Net interest income
$
173,712

 
$
153,452

Provision (benefit) for credit losses
9,568

 
1,014

Noninterest income
46,478

 
41,240

Noninterest expense
144,074

 
131,236

Income before income tax expense
66,548


62,442

Income tax expense
12,666

 
10,837

Net income
$
53,882


$
51,605

Basic earnings per common share (1)
$
2.30

 
$
2.21

Diluted earnings per common share(1)
2.28

 
2.20

Dividends declared per common share
0.25

 
0.13

Weighted average common shares outstanding - basic
23,470,746

 
21,995,990

Weighted average common shares outstanding - diluted
23,674,065

 
22,194,429

 
 
 
 
Performance metrics
 
 
 
Yield on loans held for investment
5.18
%
 
4.96
%
Yield on interest earnings assets
4.77

 
4.53

Rate on interest bearing deposits
1.53

 
1.10

Rate on total deposits
1.12

 
0.81

Net interest margin, fully tax equivalent
3.69

 
3.75

Return on average stockholders' equity
9.27


10.07

Return on average assets
1.06


1.16

Efficiency ratio (2)
65.43


67.41

____________________________
(1) 
Due to the combined impact of the repurchase of common stock on the quarterly average common shares outstanding calculation compared to the impact of the repurchase of common stock shares on the year-to-date average common outstanding calculation, and the effect of rounding, the sum of the 2019 quarterly earnings per common share will not equal the 2019 year-to-date earnings per common share amount. Additionally, due to the impact of average preferred shares outstanding on the calculation of earnings per share for the 2018 period, the sum of quarterly periods may not agree to the amount disclosed for the 2018 year-to-date period.
(2) 
Calculated by dividing noninterest expense by the sum of net interest income plus noninterest income.


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Origin Bancorp, Inc.
Consolidated Balance Sheets

(Dollars in thousands)
December 31,
2019
 
September 30,
2019
 
June 30,
2019
 
March 31,
2019
 
December 31,
2018
Assets
(Unaudited)
 
(Unaudited)
 
(Unaudited)
 
(Unaudited)
 
 
Cash and due from banks
$
62,160

 
$
79,005

 
$
75,204

 
$
66,312

 
$
71,008

Interest-bearing deposits in banks
229,358

 
229,757

 
124,356

 
44,928

 
45,670

Total cash and cash equivalents
291,518

 
308,762

 
199,560

 
111,240

 
116,678

Securities:
 
 
 
 
 
 
 
 
 
Available for sale
501,070

 
492,461

 
548,980

 
563,826

 
575,644

Held to maturity
28,620

 
28,759

 
28,897

 
19,033

 
19,169

Securities carried at fair value through income
11,513

 
11,745

 
11,615

 
11,510

 
11,361

Total securities
541,203

 
532,965

 
589,492

 
594,369

 
606,174

Non-marketable equity securities held in other financial institutions
39,808

 
49,205

 
49,008

 
42,314

 
42,149

Loans held for sale
64,837

 
67,122

 
58,408

 
42,265

 
52,210

Loans
4,143,195

 
4,188,497

 
3,984,597

 
3,838,343

 
3,789,105

Less: allowance for loan losses
37,520

 
37,126

 
36,683

 
35,578

 
34,203

Loans, net of allowance for loan losses
4,105,675

 
4,151,371

 
3,947,914

 
3,802,765

 
3,754,902

Premises and equipment, net
80,457

 
80,921

 
80,672

 
78,684

 
75,014

Mortgage servicing rights
20,697

 
19,866

 
21,529

 
23,407

 
25,114

Cash surrender value of bank-owned life insurance
37,961

 
37,755

 
33,070

 
32,888

 
32,706

Goodwill and other intangible assets, net
31,540

 
31,842

 
32,144

 
32,497

 
32,861

Accrued interest receivable and other assets
110,930

 
117,119

 
107,828

 
111,772

 
83,768

Total assets
$
5,324,626

 
$
5,396,928

 
$
5,119,625

 
$
4,872,201

 
$
4,821,576

Liabilities and Stockholders' Equity
 
 
 
 
 
 
 
 
 
Noninterest-bearing deposits
$
1,077,706

 
$
1,154,660

 
$
1,003,499

 
$
977,919

 
$
951,015

Interest-bearing deposits
2,360,096

 
2,309,387

 
2,011,719

 
2,101,706

 
2,027,720

Time deposits
790,810

 
820,270

 
839,794

 
818,623

 
804,403

Total deposits
4,228,612

 
4,284,317

 
3,855,012

 
3,898,248

 
3,783,138

FHLB advances and other borrowings
417,190

 
419,681

 
601,346

 
335,053

 
445,224

Junior subordinated debentures
9,671

 
9,664

 
9,657

 
9,651

 
9,644

Accrued expenses and other liabilities
69,891

 
94,903

 
69,317

 
61,127

 
33,791

Total liabilities
4,725,364

 
4,808,565

 
4,535,332

 
4,304,079

 
4,271,797

Commitments and contingencies
—

 
—

 
—

 
—

 
—

Stockholders' equity
 
 
 
 
 
 
 
 
 
Common stock
117,405

 
117,409

 
118,871

 
118,730

 
118,633

Additional paid-in capital
235,623

 
235,018

 
243,002

 
242,579

 
242,041

Retained earnings
239,901

 
229,246

 
216,801

 
205,289

 
191,585

Accumulated other comprehensive income (loss)
6,333

 
6,690

 
5,619

 
1,524

 
(2,480
)
Total stockholders' equity
599,262

 
588,363

 
584,293

 
568,122

 
549,779

Total liabilities and stockholders' equity
$
5,324,626

 
$
5,396,928

 
$
5,119,625

 
$
4,872,201

 
$
4,821,576



7
Origin Bancorp, Inc.
Consolidated Quarterly Statements of Income


 
Three months ended
 
December 31,
2019
 
September 30,
2019
 
June 30,
2019
 
March 31,
2019
 
December 31,
2018
 
 
 
 
 
 
 
 
 
 
Interest and dividend income
(Dollars in thousands, except per share amounts, unaudited)
Interest and fees on loans
$
52,331

 
$
53,932

 
$
51,461

 
$
49,175

 
$
47,819

Investment securities-taxable
2,640

 
2,786

 
3,208

 
3,341

 
3,292

Investment securities-nontaxable
772

 
826

 
871

 
858

 
996

Interest and dividend income on assets held in other financial institutions
976

 
1,262

 
1,523

 
1,120

 
951

Total interest and dividend income
56,719

 
58,806

 
57,063

 
54,494

 
53,058

Interest expense
 
 
 
 
 
 
 
 
 
Interest-bearing deposits
11,056

 
11,623

 
11,540

 
10,497

 
8,980

FHLB advances and other borrowings
1,428

 
2,420

 
2,415

 
1,834

 
1,878

Junior subordinated debentures
140

 
141

 
139

 
137

 
139

Total interest expense
12,624

 
14,184

 
14,094

 
12,468

 
10,997

Net interest income
44,095

 
44,622

 
42,969

 
42,026

 
42,061

Provision for credit losses
2,377

 
4,201

 
1,985

 
1,005

 
1,723

Net interest income after provision for credit losses
41,718

 
40,421

 
40,984

 
41,021

 
40,338

Noninterest income
 
 
 
 
 
 
 
 
 
Service charges and fees
3,488

 
3,620

 
3,435

 
3,316

 
3,349

Mortgage banking revenue
3,359

 
3,092

 
3,252

 
2,606

 
2,288

Insurance commission and fee income
2,428

 
3,203

 
3,036

 
3,510

 
2,481

Gain (loss) on sales of securities, net
—

 
20

 
—

 
—

 
(8
)
Gain (loss) on sales and disposals of other assets, net
(38
)
 
(132
)
 
(166
)
 
3

 
(23
)
Limited partnership investment (loss) income
(267
)
 
279

 
(418
)
 
400

 
745

Swap fee income
151

 
1,351

 
172

 
511

 
299

Change in fair value of equity investments
—

 
—

 
367

 
—

 
—

Other fee income
440

 
414

 
360

 
276

 
592

Other income
1,257

 
1,033

 
1,138

 
982

 
865

Total noninterest income
10,818

 
12,880

 
11,176

 
11,604

 
10,588

Noninterest expense
 
 
 
 
 
 
 
 
 
Salaries and employee benefits
22,074

 
21,523

 
22,764

 
22,613

 
21,333

Occupancy and equipment, net
4,241

 
4,274

 
4,200

 
4,044

 
3,830

Data processing
1,801

 
1,763

 
1,810

 
1,587

 
1,839

Electronic banking
936

 
924

 
892

 
689

 
699

Communications
454

 
411

 
647

 
586

 
513

Advertising and marketing
991

 
930

 
1,089

 
798

 
1,351

Professional services
878

 
956

 
839

 
904

 
1,024

Regulatory assessments
679

 
(387
)
 
691

 
711

 
666

Loan related expenses
1,400

 
1,315

 
790

 
669

 
810

Office and operations
1,632

 
1,712

 
1,849

 
1,481

 
1,516

Intangible asset amortization
302

 
302

 
353

 
364

 
367

Franchise tax expense
496

 
683

 
492

 
489

 
309

Other expenses
650

 
658

 
679

 
446

 
766

Total noninterest expense
36,534

 
35,064

 
37,095

 
35,381

 
35,023

Income before income tax expense
16,002

 
18,237

 
15,065

 
17,244

 
15,903

Income tax expense
3,175

 
3,620

 
2,782

 
3,089

 
2,725

Net income
$
12,827

 
$
14,617

 
$
12,283

 
$
14,155

 
$
13,178

Basic earnings per common share
$
0.55

 
$
0.62

 
$
0.52

 
$
0.60

 
$
0.56

Diluted earnings per common share
0.55

 
0.62

 
0.52

 
0.60

 
0.55



8
Origin Bancorp, Inc.
Loan Data

 
At and for the three months ended
Loans held for investment
December 31,
2019
 
September 30,
2019
 
June 30,
2019
 
March 31,
2019
 
December 31,
2018
 
 
 
 
 
 
 
 
 
 
Loans secured by real estate:
(Dollars in thousands, unaudited)
Commercial real estate
$
1,296,847

 
$
1,305,006

 
$
1,219,470

 
$
1,202,269

 
$
1,228,402

Construction/land/land development
517,688

 
509,905

 
524,999

 
488,167

 
429,660

Residential real estate
689,555

 
680,803

 
651,988

 
638,064

 
629,714

Total real estate
2,504,090

 
2,495,714

 
2,396,457

 
2,328,500

 
2,287,776

Commercial and industrial
1,343,475

 
1,367,595

 
1,341,652

 
1,287,300

 
1,272,566

Mortgage warehouse lines of credit
274,659

 
304,917

 
224,939

 
202,744

 
207,871

Consumer
20,971

 
20,271

 
21,549

 
19,799

 
20,892

Total loans held for investment
4,143,195

 
4,188,497

 
3,984,597

 
3,838,343

 
3,789,105

Less: Allowance for loan losses
37,520

 
37,126

 
36,683

 
35,578

 
34,203

Loans held for investment, net
$
4,105,675

 
$
4,151,371

 
$
3,947,914

 
$
3,802,765

 
$
3,754,902

 
 
 
 
 
 
 
 
 
 
Nonperforming assets
 
 
 
 
 
 
 
 
 
Nonperforming loans held for investment
 
 
 
 
 
 
 
 
 
Commercial real estate
$
6,994

 
$
7,460

 
$
9,423

 
$
8,622

 
$
8,281

Construction/land/land development
4,337

 
860

 
1,111

 
922

 
935

Residential real estate
5,132

 
5,254

 
4,978

 
5,196

 
6,668

Commercial and industrial
14,520

 
17,745

 
14,810

 
15,309

 
15,792

Consumer
163

 
153

 
156

 
206

 
180

Total nonperforming loans held for investment
31,146

 
31,472

 
30,478

 
30,255

 
31,856

Nonperforming loans held for sale
927

 
1,462

 
2,049

 
1,390

 
741

Total nonperforming loans
32,073

 
32,934

 
32,527

 
31,645

 
32,597

Repossessed assets
4,753

 
4,565

 
3,554

 
3,659

 
3,739

Total nonperforming assets
$
36,826

 
$
37,499

 
$
36,081

 
$
35,304

 
$
36,336

Classified assets
$
69,870

 
$
73,516

 
$
80,124

 
$
77,619

 
$
82,914

Past due loans held for investment (1)
29,980

 
29,965

 
31,884

 
37,841

 
34,085

 
 
 
 
 
 
 
 
 
 
Allowance for loan losses
 
 
 
 
 
 
 
 
 
Balance at beginning of period
$
37,126

 
$
36,683

 
$
35,578

 
$
34,203

 
$
35,727

Provision for loan losses
3,167

 
3,435

 
1,782

 
823

 
1,886

Loans charged off
3,268

 
5,415

 
840

 
608

 
3,583

Loan recoveries
495

 
2,423

 
163

 
1,160

 
173

Net charge-offs (recoveries)
2,773

 
2,992

 
677

 
(552
)
 
3,410

Balance at end of period
$
37,520

 
$
37,126

 
$
36,683

 
$
35,578

 
$
34,203

 
 
 
 
 
 
 
 
 
 
Credit quality ratios
 
 
 
 
 
 
 
 
 
Total nonperforming assets to total assets
0.69
%
 
0.69
%
 
0.70
%
 
0.72
 %
 
0.75
%
Total nonperforming loans to total loans
0.76

 
0.77

 
0.80

 
0.82

 
0.85

Nonperforming loans held for investment to loans held for investment
0.75

 
0.75

 
0.76

 
0.79

 
0.84

Past due loans held for investment to loans held for investment
0.72

 
0.72

 
0.80

 
0.99

 
0.90

Allowance for loan losses to nonperforming loans held for investment
120.46

 
117.97

 
120.36

 
117.59

 
107.37

Allowance for loan losses to total loans held for investment
0.91

 
0.89

 
0.92

 
0.93

 
0.90

Net charge-offs (recoveries) to total average loans held for investment (annualized)
0.26

 
0.29

 
0.07

 
(0.06
)
 
0.37

____________________________
(1) 
Past due loans held for investment are defined as loans 30 days past due or more.


9
Origin Bancorp, Inc.
Average Balances and Yields/Rates


 
Three months ended
 
December 31, 2019
 
September 30, 2019
 
December 31, 2018
 
Average Balance
 
Yield/Rate
 
Average Balance
 
Yield/Rate
 
Average Balance
 
Yield/Rate
 
 
 
 
 
 
 
 
 
 
 
 
Assets
(Dollars in thousands, unaudited)
Commercial real estate
$
1,307,023

 
5.03
%
 
$
1,259,274

 
5.22
%
 
$
1,176,837

 
5.07
%
Construction/land/land development
526,494

 
5.20

 
533,328

 
5.48

 
407,120

 
5.55

Residential real estate
694,436

 
4.95

 
676,650

 
5.07

 
604,383

 
4.87

Commercial and industrial
1,356,316

 
4.88

 
1,340,684

 
5.26

 
1,251,969

 
5.22

Mortgage warehouse lines of credit
262,392

 
4.47

 
236,042

 
4.92

 
187,801

 
5.54

Consumer
20,889

 
6.68

 
20,959

 
6.90

 
21,809

 
6.76

Loans held for investment
4,167,550

 
4.95

 
4,066,937

 
5.23

 
3,649,919

 
5.17

Loans held for sale
42,873

 
2.63

 
33,814

 
4.15

 
22,168

 
4.70

Loans Receivable
4,210,423

 
4.93

 
4,100,751

 
5.22

 
3,672,087

 
5.17

Investment securities-taxable
437,626

 
2.41

 
448,766

 
2.48

 
499,489

 
2.64

Investment securities-nontaxable
100,705

 
3.07

 
103,053

 
3.21

 
113,183

 
3.52

Non-marketable equity securities held in other financial institutions
48,669

 
2.88

 
49,025

 
2.76

 
40,176

 
2.64

Interest-bearing balances due from banks
139,508

 
1.77

 
152,580

 
2.39

 
108,126

 
2.51

Total interest-earning assets
4,936,931

 
4.56
%
 
4,854,175

 
4.81
%
 
4,433,061

 
4.75
%
Noninterest-earning assets(1)
335,048

 
 
 
325,374

 
 
 
308,125

 
 
Total assets
$
5,271,979

 
 
 
$
5,179,549

 
 
 
$
4,741,186

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities and Stockholders' Equity
 
 
 
 
 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
 
 
 
 
 
Interest-bearing liabilities
 
 
 
 
 
 
 
 
 
 
 
Savings and interest-bearing transaction accounts
$
2,248,863

 
1.21
%
 
$
2,071,990

 
1.36
%
 
$
1,932,958

 
1.10
%
Time deposits
803,344

 
2.08

 
828,993

 
2.16

 
789,816

 
1.81

Total interest-bearing deposits
3,052,207

 
1.44

 
2,900,983

 
1.59

 
2,722,774

 
1.31

FHLB advances and other borrowings
342,000

 
1.62

 
475,860

 
1.96

 
358,810

 
1.95

Securities sold under agreements to repurchase
18,198

 
0.65

 
25,302

 
1.09

 
37,075

 
1.23

Junior subordinated debentures
9,668

 
5.67

 
9,661

 
5.69

 
9,641

 
5.66

Total interest-bearing liabilities
3,422,073

 
1.46
%
 
3,411,806

 
1.65
%
 
3,128,300

 
1.39
%
Noninterest-bearing deposits
1,150,381

 
 
 
1,076,344

 
 
 
1,001,033

 
 
Other liabilities(1)
101,600

 
 
 
102,895

 
 
 
70,648

 
 
Total liabilities
4,674,054

 
 
 
4,591,045

 
 
 
4,199,981

 
 
Stockholders' Equity
597,925

 
 
 
588,504

 
 
 
541,205

 
 
Total liabilities and stockholders' equity
$
5,271,979

 
 
 
$
5,179,549

 
 
 
$
4,741,186

 
 
Net interest spread
 
 
3.10
%
 
 
 
3.16
%
 
 
 
3.36
%
Net interest margin
 
 
3.54
%
 
 
 
3.65
%
 
 
 
3.76
%
Net interest income margin - (tax- equivalent)(2)
 
 
3.58
%
 
 
 
3.69
%
 
 
 
3.82
%
____________________________
(1) 
Includes Government National Mortgage Association ("GNMA") repurchase average balances of $24.5 million, $23.7 million and $29.2 million for the three months ended December 31, 2019, September 30, 2019, and December 31, 2018, respectively. The GNMA repurchase asset and liability are recorded as equal offsetting amounts in the consolidated balance sheets, with the asset included in Loans held for sale and the liability included in FHLB advances and other borrowings.
(2) 
In order to present pre-tax income and resulting yields on tax-exempt investments comparable to those on taxable investments, a tax-equivalent adjustment has been computed. This adjustment also includes income tax credits received on Qualified School Construction Bonds.


10
Origin Bancorp, Inc.
Non-GAAP Financial Measures


(Dollars in thousands, except per share amounts)
December 31,
2019
 
September 30,
 2019
 
June 30,
2019
 
March 31,
2019
 
December 31,
2018
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
31,540

 
31,842

 
32,144

 
32,497

 
32,861

Tangible Common Equity
$
567,722

 
$
556,521

 
$
552,149

 
$
535,625

 
$
516,918

 
 
 
 
 
 
 
 
 
 
Calculation of Tangible Book Value per Common Share:
 
 
 
 
 
 
 
 
 
Common Shares Outstanding at the End of the Period
23,480,945

 
23,481,781

 
23,774,238

 
23,745,985

 
23,726,559

Tangible Book Value per Common Share
$
24.18

 
$
23.70

 
$
23.22

 
$
22.56

 
$
21.79



11