Origin Bancorp, Inc. (NYSE: OBK) (“Origin” or the “Company”), the
holding company for Origin Bank (the “Bank”), today announced net
income of $21.8 million, or $0.70 diluted earnings per share for
the quarter ended June 30, 2023, compared to net income of $24.3
million, or $0.79 diluted earnings per share, for the quarter ended
March 31, 2023. Adjusted pre-tax, pre-provision ("adjusted
PTPP")(1) earnings were $31.6 million, for the quarter ended June
30, 2023.
“As we enter the second half of the year, Origin is operating
from a position of strength as we continue to execute on our
long-term strategy,” said Drake Mills, chairman, president and CEO
of Origin Bancorp, Inc. “While we are mindful of the challenges
facing the entire industry, this company has proven that we can
maximize the opportunities before us, and come out of economic
cycles a stronger, more efficient company.”
(1) Adjusted PTPP earnings is a non-GAAP financial measure,
please see the last few pages of this document for a reconciliation
of this alternative financial measure to its comparable GAAP
measure.
Financial Highlights
- Total loans held for investment
("LHFI"), excluding mortgage warehouse lines of credit, were $7.09
billion at June 30, 2023, reflecting an increase of $46.8 million,
or 0.7%, compared to March 31, 2023.
- Total deposits were $8.49 billion at
June 30, 2023, reflecting an increase of $315.7 million, or 3.9%,
compared to March 31, 2023.
- Net interest income was $75.3
million for the quarter ended June 30, 2023, reflecting a decrease
of $1.9 million, or 2.4%, compared to the linked quarter.
- Book value per common share was
$32.33 at June 30, 2023, reflecting an increase of $0.08, or 0.2%,
compared to the linked quarter. Tangible book value per common
share(1) was $26.71 at June 30, 2023, reflecting an increase of
$0.18, or 0.7%, compared to the linked quarter.
- At June 30, 2023, and March 31,
2023, Company level common equity Tier 1 capital to risk-weighted
assets was 11.01%, and 11.08%, respectively, the Tier 1 leverage
ratio was 9.65% and 9.79%, respectively, and the total capital
ratio was 14.11% and 14.30%, respectively. Tangible common equity
to tangible assets(1) was 8.25% at June 30, 2023, compared to 8.02%
at March 31, 2023.
- LHFI, excluding mortgage warehouse
lines of credit, to deposits were 83.5% at June 30, 2023, compared
to 86.1% at March 31, 2023. Cash and liquid securities as a
percentage of total assets was 11.1% at June 30, 2023, compared to
14.3% at March 31, 2023.
(1) Tangible book value per common share and tangible common
equity to tangible assets are non-GAAP financial measures. Please
see the last few pages of this document for a reconciliation of
these alternative financial measures to their comparable GAAP
measures.
Results of Operations for the Three
Months Ended June 30, 2023
Net Interest Income and Net Interest
Margin
Net interest income for the quarter ended June 30, 2023, was
$75.3 million, a decrease of $1.9 million, or 2.4%, compared
to the linked quarter, due primarily to a $14.0 million
increase in total interest expense, partially offset by a
$12.2 million increase in total interest income. Increases in
interest rates drove an $8.9 million increase in total deposit
interest expense, and higher average interest-bearing deposit
balances drove another $3.1 million increase in total deposit
interest expense, primarily due to higher average brokered and time
deposit balances. An additional $1.9 million increase in total
interest expense was due to higher average balances of FHLB
advances and other borrowings during the current quarter compared
to the linked quarter. Increases in average interest-earning asset
balances drove a $6.1 million increase in total interest
income, of which $4.3 million was due to higher average LHFI
balances, while increases in interest rates on average
interest-earning assets drove another $6.1 million increase in
total interest income, of which $4.7 million was due to higher
interest rates on LHFI.
The net purchase accounting accretion declined to $530,000, a
decrease of $1.2 million, for the three months ended June 30,
2023, compared to the three months ended March 31, 2023. The table
below presents the estimated loan and deposit accretion and
subordinated indebtedness amortization resulting from merger
purchase accounting adjustments for the periods shown.
|
Loan Accretion Income |
|
Deposit Accretion Income |
|
Subordinated IndebtednessAmortization
Expense |
|
Total Impact to Net Interest Income |
3Q2022 |
$ |
1,187 |
|
|
$ |
238 |
|
$ |
(10 |
) |
|
$ |
1,415 |
|
4Q2022 |
|
1,653 |
|
|
|
259 |
|
|
(15 |
) |
|
|
1,897 |
|
1Q2023 |
|
1,617 |
|
|
|
101 |
|
|
(15 |
) |
|
|
1,703 |
|
2Q2023 |
|
490 |
|
|
|
55 |
|
|
(15 |
) |
|
|
530 |
|
Total actual realized net
purchase accounting accretion |
$ |
4,947 |
|
|
$ |
653 |
|
$ |
(55 |
) |
|
$ |
5,545 |
|
|
|
|
|
|
|
|
|
Remaining 2023 |
$ |
(84 |
) |
|
$ |
53 |
|
$ |
(32 |
) |
|
$ |
(63 |
) |
Thereafter |
|
223 |
|
|
|
23 |
|
|
(706 |
) |
|
|
(460 |
) |
Total remaining net purchase
accounting accretion at June 30, 2023 |
$ |
139 |
|
|
$ |
76 |
|
$ |
(738 |
) |
|
$ |
(523 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Federal Reserve Board sets various benchmark rates,
including the Federal Funds rate, and thereby influences the
general market rates of interest, including the loan and deposit
rates offered by financial institutions. On March 17, 2022, the
Federal Reserve began an aggressive campaign to combat inflation
with its first target rate range increase to 0.25% to 0.50%.
Subsequently, it increased the target range six more times during
2022 and three more times during 2023, with the most recent and
current Federal Funds target rate range being set on May 3, 2023,
at 5.00% to 5.25%. By June 30, 2023, the Federal Funds target rate
range had increased 475 basis points from March 17, 2022, and
in order to remain competitive as market interest rates increased,
we increased interest rates paid on our deposits.
The average rate on interest-bearing deposits increased to 3.05%
for the quarter ended June 30, 2023, compared to 2.49% for the
quarter ended March 31, 2023. The average interest-bearing deposit
balances increased $494.3 million to $6.12 billion for the
quarter ended June 30, 2023, from $5.63 billion for the linked
quarter, of which $317.7 million and $84.1 million, respectively,
were driven by higher average brokered and non-brokered time
deposit balances. The average noninterest-bearing deposit balances
declined $252.2 million during the quarter ended June 30, 2023, as
depositors sought out safety in the form of FDIC insurance-covered
balances and higher yielding investments amid increasing interest
rates in the marketplace.
The average rate on FHLB advances and other borrowings increased
to 5.26% for the quarter ended June 30, 2023, compared to 5.21% for
the linked quarter. Additionally, the yield on LHFI was 6.18% and
6.03% for the quarter ended June 30, 2023, and March 31, 2023,
respectively, and average LHFI balances increased to
$7.47 billion for the quarter ended June 30, 2023, compared to
$7.15 billion for the linked quarter. The yield on LHFI,
excluding the purchase accounting accretion, was 6.16% for the
quarter ended June 30, 2023, compared to 5.94% for the linked
quarter.
During March 2023, the Company made a strategic decision to
borrow and hold approximately $700.0 million of excess cash
for contingency liquidity for the majority of the quarter ended
June 30, 2023. As of June 30, 2023, the Company repaid the excess
contingency liquidity. The excess liquidity was held at a
weighted-average rate of 5.17% and added $368.7 million in average
interest-bearing assets for the quarter ended June 30, 2023, which
negatively impacted the fully tax-equivalent net interest margin
(“NIM”) by 12 basis points.
The fully tax-equivalent NIM was impacted by margin compression
as rates on interest-bearing liabilities rose faster than yields on
interest-earning assets during the last three quarters. The fully
tax-equivalent NIM was 3.16% for the quarter ended June 30, 2023, a
28 and a 7 basis point decrease compared to the linked quarter and
the prior year same quarter, respectively. The yield earned on
interest-earning assets for the quarter ended June 30, 2023, was
5.50%, an increase of 19 and 197 basis points compared to the
linked quarter and the prior year same quarter, respectively. The
average rate paid on total deposits for the quarter ended June 30,
2023, was 2.26%, representing a 51 and a 207 basis point increase
compared to the linked quarter and the prior year same quarter,
respectively. The average rate paid on FHLB and other borrowings
also increased to 5.26%, reflecting a 5 and a 392 basis point
increase compared to the linked quarter and prior year same
quarter, respectively. The net increase in accretion income due to
the BT Holdings, Inc. (“BTH”) merger increased the fully
tax-equivalent NIM by approximately two and eight basis points for
the current quarter and the linked quarter, respectively.
Credit Quality
The table below includes key credit quality information:
|
At and For the Three Months Ended |
|
$ Change |
|
% Change |
(Dollars in thousands,
unaudited) |
June 30, 2023 |
|
March 31, 2023 |
|
June 30,2022 |
|
Linked Quarter |
|
Linked Quarter |
Past due LHFI |
$ |
19,836 |
|
|
$ |
11,498 |
|
|
$ |
7,186 |
|
|
$ |
8,338 |
|
|
|
72.5 |
% |
Allowance for Loan Credit
Losses (“ALCL”) |
|
94,353 |
|
|
|
92,008 |
|
|
|
63,123 |
|
|
|
2,345 |
|
|
|
2.5 |
|
Classified loans |
|
84,298 |
|
|
|
86,170 |
|
|
|
52,115 |
|
|
|
(1,872 |
) |
|
|
(2.2 |
) |
Total nonperforming LHFI |
|
33,609 |
|
|
|
17,078 |
|
|
|
14,085 |
|
|
|
16,531 |
|
|
|
96.8 |
|
Provision for credit
losses |
|
4,306 |
|
|
|
6,197 |
|
|
|
3,452 |
|
|
|
(1,891 |
) |
|
|
(30.5 |
) |
Net charge-offs |
|
1,919 |
|
|
|
1,311 |
|
|
|
1,553 |
|
|
|
608 |
|
|
|
46.4 |
|
Credit quality
ratios(1): |
|
|
|
|
|
|
|
|
|
ALCL to nonperforming LHFI |
|
280.74 |
% |
|
|
538.75 |
% |
|
|
448.16 |
% |
|
|
N/A |
|
|
|
-25801 bp |
|
ALCL to total LHFI |
|
1.24 |
|
|
|
1.25 |
|
|
|
1.14 |
|
|
|
N/A |
|
|
|
-1 bp |
|
ALCL to total LHFI, adjusted(2) |
|
1.32 |
|
|
|
1.30 |
|
|
|
1.25 |
|
|
|
N/A |
|
|
|
2 bp |
|
Nonperforming LHFI to LHFI |
|
0.44 |
|
|
|
0.23 |
|
|
|
0.25 |
|
|
|
N/A |
|
|
|
21 bp |
|
Net charge-offs to total average LHFI (annualized) |
|
0.10 |
|
|
|
0.07 |
|
|
|
0.12 |
|
|
|
N/A |
|
|
|
3 bp |
|
___________________________(1) Please see the Loan Data
schedule at the back of this document for additional
information.(2) The ALCL to total LHFI, adjusted, is
calculated at June 30, 2023, and March 31, 2023, by excluding the
ALCL for warehouse loans from the total LHFI ALCL in the numerator
and excluding the warehouse loans from the LHFI in the denominator.
At June 30, 2022, it is calculated by excluding the ALCL for
warehouse loans from the total LHFI ALCL in the numerator and
excluding the PPP and warehouse loans from the LHFI in the
denominator. Due to their low-risk profile, mortgage warehouse
loans require a disproportionately low allocation of the ALCL, and
PPP loans are fully guaranteed by the SBA.
The Company recorded a credit loss provision of
$4.3 million during the quarter ended June 30, 2023, compared
to $6.2 million recorded during the linked quarter. The
decrease is primarily due to lower loan growth, exclusive of
mortgage warehouse lines of credit, during the quarter ended June
30, 2023, compared to March 31, 2023.
The ALCL to nonperforming LHFI decreased to 280.7% at June 30,
2023, compared to 538.8% at March 31, 2023, driven by an increase
of $16.5 million in the Company’s nonperforming LHFI, offset
by an increase of $2.3 million in the ALCL for the quarter.
The $16.5 million increase in nonperforming LHFI at June 30,
2023, included $7.1 million from the reclassification of
mortgage loans from the held for sale portfolio to the held for
investment portfolio. While nonperforming LHFI to LHFI increased
over the past quarter, the current level of 0.44% compares to
levels of 0.41% and 0.48%, as of March 31, 2022, and December 31,
2021, respectively.
Past due LHFI increased $8.3 million to $19.8 million from $11.5
million for the linked quarter, primarily due to increases in past
due commercial and industrial loans. On a percentage basis, past
due LHFI to LHFI of 0.26%, compares favorably to levels of 0.42%
and 0.49%, as of March 31, 2022, and December 31, 2021,
respectively. Classified loans decreased $1.9 million at June
30, 2023, compared to the linked quarter, and represented 1.11% of
LHFI at June 30, 2023, compared to 1.17% at March 31, 2023.
Noninterest Income
Noninterest income for the quarter ended June 30, 2023, was
$15.6 million, a decrease of $748,000, or 4.6%, from the linked
quarter. The decrease from the linked quarter was primarily driven
by decreases of $826,000 and $379,000 on insurance commission and
fee income and mortgage banking revenue, respectively. These
decreases were partially offset by a $484,000 increase in other
noninterest income.
The decrease in insurance commission and fee income was
primarily driven by seasonality, as there is typically higher
annual contingency fee income in the first quarter of each
year.
The decrease in mortgage banking revenue was primarily due to
decreased mortgage production during the current quarter, compared
to the linked quarter.
The increase in other noninterest income was due to a $471,000
gain realized from repurchasing, at a discount, $5.0 million
in the Company’s subordinated promissory notes from the FDIC
through its failed bank operation process.
Noninterest Expense
Noninterest expense for the quarter ended June 30, 2023, was
$58.9 million, an increase of $2.1 million, or 3.7%, compared to
the linked quarter. The increase from the linked quarter was
primarily due to increases of $802,000, $781,000 and $413,000 in
salaries and employee benefit, regulatory assessments and office
and operations expenses, respectively.
The increase in salaries and employee benefit expense was
primarily driven by nine new positions added to the Company’s
mortgage group, including the Litton mortgage team.
The increase in regulatory assessment expense was due to an 192
basis point increase in the FDIC’s Uniform Assessment rate which
negatively impacted the Company’s regulatory expenses.
The increase in office and operations expense was due to higher
business development expenses incurred during the current
quarter.
Income Taxes
The effective tax rate was 21.5% during the quarter ended June
30, 2023, compared to 20.5% during the linked quarter and 18.4%
during the quarter ended June 30, 2022. The effective tax rate for
the current quarter was higher due to increased state tax compared
to the linked quarter and the quarter ended June 30, 2022.
Financial Condition
Loans
- Total LHFI at June 30, 2023, were $7.62 billion, an increase of
$246.9 million, or 3.3%, from $7.38 billion at March 31, 2023, and
an increase of $2.09 billion, or 37.9%, compared to June 30,
2022.
- Mortgage warehouse lines of credit totaled $537.6 million at
June 30, 2023, an increase of $200.1 million, or 59.3%, compared to
the linked quarter.
- Total real estate loans were $5.08 billion at June 30, 2023, an
increase of $161.5 million, or 3.3%, from the linked quarter, with
construction/land/land development loan growth contributing
$73.6 million of the total real estate loan growth.
- Total commercial and industrial loans were $1.98 billion
at June 30, 2023, a decrease of $114.1 million, or 5.5%,
compared to the linked quarter.
Securities
- Total securities at June 30, 2023, were $1.55 billion, a
decrease of $55.9 million, or 3.5%, compared to the linked
quarter and a decrease of $262.2 million, or 14.4%, compared to
June 30, 2022.
- The decrease was primarily due to maturities and calls, as well
as normal principal paydowns, there were no sales of securities
during the current quarter.
- Accumulated other comprehensive loss, net of taxes, primarily
associated with the available for sale (“AFS”) portfolio, was
$152.9 million at June 30, 2023, an increase of $14.4 million
from the linked quarter.
- The weighted average effective
duration for the total securities portfolio was 4.13 years as of
June 30, 2023, compared to 4.17 years as of March 31, 2023.
Deposits
- Total deposits at June 30, 2023, were $8.49 billion, an
increase of $315.7 million, or 3.9%, compared to the linked
quarter, and represented an increase of $2.19 billion, or 34.7%,
from June 30, 2022.
- The increase in the current quarter compared to the linked
quarter was primarily due to increases of $387.9 million and
$92.4 million in brokered deposits and non-brokered time
deposits, respectively, which was partially offset by a
$124.1 million decrease in noninterest-bearing deposits.
- At June 30, 2023, noninterest-bearing deposits as a percentage
of total deposits were 25.0%, compared to 27.5% and 35.1% at March
31, 2023, and June 30, 2022, respectively.
- Uninsured/uncollateralized deposits
totaled $2.84 billion at June 30, 2023, compared to $3.09 billion
at March 31, 2023, representing 33.4% and 37.8% of total deposits
at June 30, 2023 and March 31, 2023, respectively.
Borrowings
- FHLB advances and other borrowings at June 30, 2023, were
$342.9 million, a decrease of $532.6 million, or 60.8%,
compared to the linked quarter and represented a decrease of
$551.7 million, or 61.7%, from June 30, 2022. The decrease was
primarily due to the repayment of approximately $700.0 million
in excess contingency liquidity borrowed during March 2023 and held
for the majority of the quarter ended June 30, 2023.
- Average FHLB advances were
$599.2 million for the quarter ended June 30, 2023, an
increase of $167.0 million, or 38.6%, from $432.2 million
for the quarter ended March 31, 2023 and an increase of
$189.3 million, or 46.2%, from June 30, 2022.
Stockholders’ Equity
- Stockholders’ equity was $997.9 million at June 30, 2023, an
increase of $5.3 million, or 0.5%, compared to $992.6 million at
March 31, 2023, and an increase of $351.5 million, or 54.4%,
compared to $646.4 million, at June 30, 2022.
- The increase in stockholders’ equity from the linked quarter is
primarily due to net income of $21.8 million, partially offset by
an increase in accumulated other comprehensive loss, net of tax, of
$14.4 million and dividends declared of $4.7 million
during the current quarter.
Conference Call
Origin will hold a conference call to discuss its second quarter
2023 results on Thursday, July 27, 2023, at 8:00 a.m. Central
Time (9:00 a.m. Eastern Time). To participate in the live
conference call, please dial +1 (929) 272-1574 (U.S. Local /
International 1); +1 (857) 999-3259 (U.S. Local / International 2);
+1 (800) 528-1066 (U.S. Toll Free), enter Conference ID: 35632 and
request to be joined into the Origin Bancorp, Inc. (OBK) 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://dealroadshow.com/e/ORIGINQ223.
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
Origin Bancorp, Inc. is a financial holding company
headquartered in Ruston, Louisiana. Origin’s wholly owned bank
subsidiary, Origin Bank, was founded in 1912 in Choudrant,
Louisiana. Deeply rooted in Origin’s history is a culture committed
to providing personalized, relationship banking to businesses,
municipalities, and personal clients to enrich the lives of the
people in the communities it serves. Origin provides a broad range
of financial services and currently operates 61 banking centers
located in Dallas/Fort Worth, East Texas, Houston, North Louisiana
and Mississippi. For more information, visit www.origin.bank.
Non-GAAP Financial Measures
Origin reports its results in accordance with generally accepted
accounting principles in the United States of America ("GAAP").
However, management believes that certain supplemental non-GAAP
financial measures may provide meaningful information to investors
that is useful in understanding Origin's results of operations and
underlying trends in its business. However, non-GAAP financial
measures are supplemental and should be viewed in addition to, and
not as an alternative for, Origin's reported results prepared in
accordance with GAAP. The following are the non-GAAP measures used
in this release: adjusted net income, adjusted PTPP earnings,
adjusted diluted EPS, NIM-FTE, adjusted, adjusted ROAA, adjusted
PTPP ROAA, adjusted ROAE, adjusted PTPP ROAE, tangible book value
per common share, adjusted tangible book value per common share,
tangible common equity to tangible assets, ROATCE, adjusted ROATCE
and adjusted efficiency ratio.
Please see the last few pages of this release for
reconciliations of non-GAAP measures to the most directly
comparable financial measures calculated in accordance with
GAAP.
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
strategies, projected plans and objectives, and any expected
purchases of its outstanding common stock, and related transactions
and other projections based on macroeconomic and industry trends,
including changes to interest rates by the Federal Reserve and the
resulting impact on Origin’s results of operations, estimated
forbearance amounts 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 or statistics preceded by, followed by or that otherwise
include the words “assumes,” “anticipates,” “believes,”
“estimates,” “expects,” “foresees,” “intends,” “plans,” “projects,”
and similar expressions or future or conditional verbs such as
“could,” “may,” “might,” “should,” “will,” and “would” and
variations of such terms 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, but are not limited to: potential impacts of
the recent adverse developments in the banking industry highlighted
by high-profile bank failures, including impacts on customer
confidence, deposit outflows, liquidity and the regulatory response
thereto; the impact of current and future economic conditions
generally and in the financial services industry, nationally and
within Origin’s primary market areas, including the effects of
declines in the real estate market, high unemployment rates,
inflationary pressures, elevated interest rates and slowdowns in
economic growth, as well as the financial stress on borrowers and
changes to customer and client behavior as a result of the
foregoing; deterioration of Origin’s asset quality; factors that
can impact the performance of Origin’s loan portfolio, including
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; developments in
our mortgage banking business, including loan modifications,
general demand, and the effects of judicial or regulatory
requirements or guidance; Origin’s ability to anticipate interest
rate changes and manage interest rate risk, (including the impact
of higher interest rates on macroeconomic conditions, competition,
and the cost of doing business); the effectiveness of Origin’s risk
management framework and quantitative models; Origin’s inability to
receive dividends from Origin Bank and to service debt, pay
dividends to Origin’s common stockholders, repurchase Origin’s
shares of common stock and satisfy obligations as they become due;
the impact of labor pressures; changes in Origin’s operation or
expansion strategy or Origin’s ability to prudently manage its
growth and execute its strategy; changes in management personnel;
Origin’s ability to maintain important customer relationships,
reputation or otherwise avoid liquidity risks; increasing costs as
Origin grows deposits; operational risks associated with Origin’s
business; volatility and direction of market interest rates;
significant turbulence or a disruption in the capital or financial
markets and the effect of a fall in stock market prices on our
investment securities; increased competition in the financial
services industry, particularly from regional and national
institutions, as well as from fintech companies; 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; 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; changes in laws,
rules, regulations, interpretations or policies relating to
financial institutions, and potential expenses associated with
complying with such regulations; periodic changes to the extensive
body of accounting rules and best practices; further government
intervention in the U.S. financial system; a deterioration of the
credit rating for U.S. long-term sovereign debt or actions that the
U.S. government may take to avoid exceeding the debt ceiling;
compliance with governmental and regulatory requirements, including
the Dodd-Frank Wall Street Reform and Consumer Protection Act and
others relating to banking, consumer protection, securities, and
tax matters; 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; uncertainty regarding the
transition away from the London Interbank Offered Rate and the
impact of any replacement alternatives such as the Secured
Overnight Financing Rate on Origin’s business; possible changes in
trade, monetary and fiscal policies, laws and regulations and other
activities of governments, agencies and similar organizations;
natural disasters and adverse weather events, acts of terrorism, an
outbreak of hostilities (including the impacts related to or
resulting from Russia's military action in Ukraine, including the
imposition of additional sanctions and export controls, as well as
the broader impacts to financial markets and the global
macroeconomic and geopolitical environments), regional or national
protests and civil unrest (including any resulting branch closures
or property damage), widespread illness or public health outbreaks
or other international or domestic calamities, and other matters
beyond Origin’s control; the impact of generative artificial
intelligence; and system failures, cybersecurity threats or
security breaches and the cost of defending against them. 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 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, adjusted,
projected, and estimated numbers are used for illustrative purposes
only, are not forecasts, and may not reflect actual results.
Contact:
Investor RelationsChris
Reigelman318-497-3177chris@origin.bank
Media ContactRyan
Kilpatrick318-232-7472rkilpatrick@origin.bank
Origin Bancorp,
Inc.Selected Quarterly Financial
Data(Unaudited)
|
Three Months Ended |
|
June 30, 2023 |
|
March 31, 2023 |
|
December 31,2022 |
|
September 30,2022 |
|
June 30,2022 |
|
|
|
|
|
|
|
|
|
|
Income statement and
share amounts |
(Dollars in thousands, except per share amounts) |
Net interest income |
$ |
75,291 |
|
|
$ |
77,147 |
|
|
$ |
84,749 |
|
|
$ |
78,523 |
|
|
$ |
59,504 |
|
Provision for credit
losses |
|
4,306 |
|
|
|
6,197 |
|
|
|
4,624 |
|
|
|
16,942 |
|
|
|
3,452 |
|
Noninterest income |
|
15,636 |
|
|
|
16,384 |
|
|
|
13,429 |
|
|
|
13,723 |
|
|
|
14,216 |
|
Noninterest expense |
|
58,887 |
|
|
|
56,760 |
|
|
|
57,254 |
|
|
|
56,241 |
|
|
|
44,150 |
|
Income before income tax
expense |
|
27,734 |
|
|
|
30,574 |
|
|
|
36,300 |
|
|
|
19,063 |
|
|
|
26,118 |
|
Income tax expense |
|
5,974 |
|
|
|
6,272 |
|
|
|
6,822 |
|
|
|
2,820 |
|
|
|
4,807 |
|
Net income |
$ |
21,760 |
|
|
$ |
24,302 |
|
|
$ |
29,478 |
|
|
$ |
16,243 |
|
|
$ |
21,311 |
|
Adjusted net income(1) |
$ |
21,388 |
|
|
$ |
24,188 |
|
|
$ |
30,409 |
|
|
$ |
31,087 |
|
|
$ |
21,949 |
|
Adjusted PTPP earnings(1) |
|
31,569 |
|
|
|
36,627 |
|
|
|
42,103 |
|
|
|
39,905 |
|
|
|
30,377 |
|
Basic earnings per common
share |
|
0.71 |
|
|
|
0.79 |
|
|
|
0.96 |
|
|
|
0.57 |
|
|
|
0.90 |
|
Diluted earnings per common
share |
|
0.70 |
|
|
|
0.79 |
|
|
|
0.95 |
|
|
|
0.57 |
|
|
|
0.90 |
|
Adjusted diluted earnings per
common share(1) |
|
0.69 |
|
|
|
0.78 |
|
|
|
0.99 |
|
|
|
1.09 |
|
|
|
0.92 |
|
Dividends declared per common
share |
|
0.15 |
|
|
|
0.15 |
|
|
|
0.15 |
|
|
|
0.15 |
|
|
|
0.15 |
|
Weighted average common shares
outstanding - basic |
|
30,791,397 |
|
|
|
30,742,902 |
|
|
|
30,674,389 |
|
|
|
28,298,984 |
|
|
|
23,740,611 |
|
Weighted average common shares
outstanding - diluted |
|
30,872,834 |
|
|
|
30,882,156 |
|
|
|
30,867,511 |
|
|
|
28,481,619 |
|
|
|
23,788,164 |
|
|
|
|
|
|
|
|
|
|
|
Balance sheet
data |
|
|
|
|
|
|
|
|
|
Total LHFI |
$ |
7,622,689 |
|
|
$ |
7,375,823 |
|
|
$ |
7,090,022 |
|
|
$ |
6,882,681 |
|
|
$ |
5,528,093 |
|
Total assets |
|
10,165,163 |
|
|
|
10,358,516 |
|
|
|
9,686,067 |
|
|
|
9,462,639 |
|
|
|
8,111,524 |
|
Total deposits |
|
8,490,043 |
|
|
|
8,174,310 |
|
|
|
7,775,702 |
|
|
|
7,777,327 |
|
|
|
6,303,158 |
|
Total stockholders’
equity |
|
997,859 |
|
|
|
992,587 |
|
|
|
949,943 |
|
|
|
907,024 |
|
|
|
646,373 |
|
|
|
|
|
|
|
|
|
|
|
Performance metrics
and capital ratios |
|
|
|
|
|
|
|
|
|
Yield on LHFI |
|
6.18 |
% |
|
|
6.03 |
% |
|
|
5.63 |
% |
|
|
4.94 |
% |
|
|
4.26 |
% |
Yield on interest-earnings
assets |
|
5.50 |
|
|
|
5.31 |
|
|
|
4.96 |
|
|
|
4.23 |
|
|
|
3.53 |
|
Cost of interest-bearing
deposits |
|
3.05 |
|
|
|
2.49 |
|
|
|
1.54 |
|
|
|
0.64 |
|
|
|
0.29 |
|
Cost of total deposits |
|
2.26 |
|
|
|
1.75 |
|
|
|
1.02 |
|
|
|
0.41 |
|
|
|
0.19 |
|
NIM - fully tax equivalent
("FTE") |
|
3.16 |
|
|
|
3.44 |
|
|
|
3.81 |
|
|
|
3.68 |
|
|
|
3.23 |
|
NIM - FTE, adjusted(2) |
|
3.14 |
|
|
|
3.36 |
|
|
|
3.73 |
|
|
|
3.61 |
|
|
|
3.20 |
|
Return on average assets
(annualized) ("ROAA") |
|
0.86 |
|
|
|
1.01 |
|
|
|
1.23 |
|
|
|
0.70 |
|
|
|
1.08 |
|
Adjusted ROAA
(annualized)(1) |
|
0.84 |
|
|
|
1.00 |
|
|
|
1.27 |
|
|
|
1.34 |
|
|
|
1.11 |
|
Adjusted PTPP ROAA
(annualized)(1) |
|
1.24 |
|
|
|
1.52 |
|
|
|
1.75 |
|
|
|
1.72 |
|
|
|
1.53 |
|
Return on average
stockholders’ equity (annualized) ("ROAE") |
|
8.76 |
|
|
|
10.10 |
|
|
|
12.80 |
|
|
|
6.86 |
|
|
|
12.81 |
|
Adjusted ROAE
(annualized)(1) |
|
8.61 |
|
|
|
10.05 |
|
|
|
13.20 |
|
|
|
13.14 |
|
|
|
13.19 |
|
Adjusted PTPP ROAE
(annualized)(1) |
|
12.70 |
|
|
|
15.22 |
|
|
|
18.28 |
|
|
|
16.86 |
|
|
|
18.26 |
|
Book value per common
share(3) |
$ |
32.33 |
|
|
$ |
32.25 |
|
|
$ |
30.90 |
|
|
$ |
29.58 |
|
|
$ |
27.15 |
|
Tangible book value per common
share (1)(3) |
|
26.71 |
|
|
|
26.53 |
|
|
|
25.09 |
|
|
|
23.41 |
|
|
|
25.05 |
|
Adjusted tangible book value
per common share(1) |
|
31.66 |
|
|
|
31.03 |
|
|
|
30.29 |
|
|
|
29.13 |
|
|
|
29.92 |
|
Return on average tangible
common equity (annualized) ("ROATCE")(1) |
|
10.62 |
% |
|
|
12.34 |
% |
|
|
16.00 |
% |
|
|
8.03 |
% |
|
|
13.86 |
% |
Adjusted return on average
tangible common equity (annualized) ("adjusted ROATCE")(1) |
|
10.44 |
|
|
|
12.29 |
|
|
|
16.50 |
|
|
|
15.38 |
|
|
|
14.27 |
|
Efficiency ratio(4) |
|
64.76 |
|
|
|
60.69 |
|
|
|
58.32 |
|
|
|
60.97 |
|
|
|
59.89 |
|
Adjusted efficiency
ratio(1) |
|
61.17 |
|
|
|
58.64 |
|
|
|
53.06 |
|
|
|
52.16 |
|
|
|
54.10 |
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in thousands, except per share amounts) |
Common equity tier 1 to
risk-weighted assets(5) |
|
11.01 |
% |
|
|
11.08 |
% |
|
|
10.93 |
% |
|
|
10.51 |
% |
|
|
10.81 |
% |
Tier 1 capital to
risk-weighted assets(5) |
|
11.19 |
|
|
|
11.27 |
|
|
|
11.12 |
|
|
|
10.70 |
|
|
|
10.95 |
|
Total capital to risk-weighted
assets(5) |
|
14.11 |
|
|
|
14.30 |
|
|
|
14.23 |
|
|
|
13.79 |
|
|
|
14.09 |
|
Tier 1 leverage ratio(5) |
|
9.65 |
|
|
|
9.79 |
|
|
|
9.66 |
|
|
|
9.63 |
|
|
|
9.09 |
|
__________________________
(1) Adjusted net income, adjusted PTPP earnings, adjusted
diluted earnings per common share, adjusted ROAA, adjusted PTPP
ROAA, adjusted ROAE, adjusted PTPP ROAE, tangible book value per
common share, adjusted tangible book value per common share,
ROATCE, adjusted ROATCE and adjusted efficiency ratio are either
non-GAAP financial measures or use a non-GAAP contributor in the
formula. For a reconciliation of these alternative financial
measures to their comparable GAAP measures, please see the last few
pages of this release.(2) NIM - FTE, adjusted, is a non-GAAP
financial measure and is calculated for the quarters ended June 30,
2023, March 31, 2023, December 31, 2022, and September 30, 2022, by
removing the net purchase accounting accretion from the net
interest income. For periods prior to September 30, 2022, it is
calculated by removing average PPP loans from average
interest-earning assets and removing the associated interest income
(net of 35 basis points assumed cost of funds on average PPP loan
balances) from net interest income. (3) An increase in
accumulated other comprehensive loss negatively impacted total
stockholders' equity, tangible common equity, book value and
tangible book value per common share primarily due to the movement
of the short end of the yield curve and its impact on our
investment portfolio.(4) Calculated by dividing noninterest
expense by the sum of net interest income plus noninterest
income.(5) June 30, 2023, ratios are estimated and calculated
at the Company level, which is subject to the capital adequacy
requirements of the Federal Reserve Board.
Origin Bancorp,
Inc.Selected Year-to-Date Financial
Data(Unaudited)
|
Six Months Ended June 30, |
(Dollars in thousands, except per share amounts) |
|
2023 |
|
|
|
2022 |
|
|
|
|
|
Income statement and
share amounts |
|
Net interest income |
$ |
152,438 |
|
|
$ |
112,006 |
|
Provision for credit
losses |
|
10,503 |
|
|
|
3,125 |
|
Noninterest income |
|
32,020 |
|
|
|
30,122 |
|
Noninterest expense |
|
115,647 |
|
|
|
86,924 |
|
Income before income tax
expense |
|
58,308 |
|
|
|
52,079 |
|
Income tax expense |
|
12,246 |
|
|
|
10,085 |
|
Net income |
$ |
46,062 |
|
|
$ |
41,994 |
|
Adjusted net income(1) |
$ |
45,576 |
|
|
$ |
43,083 |
|
Adjusted PTPP earnings(1) |
|
68,196 |
|
|
|
56,582 |
|
Basic earnings per common
share |
|
1.50 |
|
|
|
1.77 |
|
Diluted earnings per common
share |
|
1.49 |
|
|
|
1.77 |
|
Adjusted diluted earnings per
common share(1) |
|
1.48 |
|
|
|
1.81 |
|
Dividends declared per common
share |
|
0.30 |
|
|
|
0.28 |
|
Weighted average common shares
outstanding - basic |
|
30,767,283 |
|
|
|
23,720,874 |
|
Weighted average common shares
outstanding - diluted |
|
30,881,072 |
|
|
|
23,780,939 |
|
|
|
|
|
Performance
metrics |
|
|
|
Yield on LHFI |
|
6.11 |
% |
|
|
4.17 |
% |
Yield on interest-earning
assets |
|
5.41 |
|
|
|
3.33 |
|
Cost of interest-bearing
deposits |
|
2.78 |
|
|
|
0.27 |
|
Cost of total deposits |
|
2.01 |
|
|
|
0.18 |
|
NIM, FTE |
|
3.29 |
|
|
|
3.04 |
|
NIM - FTE, adjusted(2) |
|
3.25 |
|
|
|
2.98 |
|
ROAA |
|
0.93 |
|
|
|
1.06 |
|
Adjusted ROAA(1) |
|
0.92 |
|
|
|
1.09 |
|
Adjusted PTPP ROAA(1) |
|
1.38 |
|
|
|
1.43 |
|
ROAE |
|
9.42 |
|
|
|
12.19 |
|
Adjusted ROAE(1) |
|
9.32 |
|
|
|
12.51 |
|
Adjusted PTPP ROAE(1) |
|
13.94 |
|
|
|
16.42 |
|
ROATCE(1) |
|
11.47 |
|
|
|
13.15 |
|
Adjusted ROATCE(1) |
|
11.34 |
|
|
|
13.49 |
|
Efficiency ratio(3) |
|
62.70 |
|
|
|
61.16 |
|
Adjusted efficiency
ratio(1) |
|
59.89 |
|
|
|
56.36 |
|
____________________________(1) Adjusted net income,
adjusted PTPP earnings, adjusted diluted earnings per common share,
adjusted ROAA, adjusted PTPP ROAA, adjusted ROAE, adjusted PTPP
ROAE, ROATCE, adjusted ROATCE and adjusted efficiency ratio are
either non-GAAP financial measures or use a non-GAAP contributor in
the formula. For a reconciliation of these alternative financial
measures to their comparable GAAP measures, please see the last few
pages of this release.(2) NIM - FTE, adjusted, is a non-GAAP
financial measure and is calculated for the six months ended June
30, 2023, by removing the net purchase accounting accretion from
the net interest income. For the six months ended June 30, 2022, it
is calculated by removing average PPP loans from average
interest-earning assets and removing the associated interest income
(net of 35 basis points assumed cost of funds on average PPP loan
balances) from net interest income. (3) Calculated by dividing
noninterest expense by the sum of net interest income plus
noninterest income.
Origin Bancorp,
Inc.Consolidated Quarterly Statements of
Income(Unaudited)
|
Three Months Ended |
|
June 30, 2023 |
|
March 31, 2023 |
|
December 31,2022 |
|
September 30,2022 |
|
June 30,2022 |
|
|
|
|
|
|
|
|
|
|
Interest and dividend
income |
(Dollars in thousands, except per share amounts) |
Interest and fees on loans |
$ |
115,442 |
|
|
$ |
106,496 |
|
|
$ |
99,178 |
|
|
$ |
79,803 |
|
|
$ |
55,986 |
|
Investment securities-taxable |
|
8,303 |
|
|
|
8,161 |
|
|
|
7,765 |
|
|
|
7,801 |
|
|
|
7,116 |
|
Investment securities-nontaxable |
|
1,283 |
|
|
|
1,410 |
|
|
|
2,128 |
|
|
|
2,151 |
|
|
|
1,493 |
|
Interest and dividend income on assets held in other financial
institutions |
|
7,286 |
|
|
|
4,074 |
|
|
|
2,225 |
|
|
|
1,482 |
|
|
|
1,193 |
|
Total interest and dividend income |
|
132,314 |
|
|
|
120,141 |
|
|
|
111,296 |
|
|
|
91,237 |
|
|
|
65,788 |
|
Interest
expense |
|
|
|
|
|
|
|
|
|
Interest-bearing deposits |
|
46,530 |
|
|
|
34,557 |
|
|
|
19,820 |
|
|
|
7,734 |
|
|
|
3,069 |
|
FHLB advances and other borrowings |
|
7,951 |
|
|
|
5,880 |
|
|
|
4,208 |
|
|
|
2,717 |
|
|
|
1,392 |
|
Subordinated indebtedness |
|
2,542 |
|
|
|
2,557 |
|
|
|
2,519 |
|
|
|
2,263 |
|
|
|
1,823 |
|
Total interest expense |
|
57,023 |
|
|
|
42,994 |
|
|
|
26,547 |
|
|
|
12,714 |
|
|
|
6,284 |
|
Net interest income |
|
75,291 |
|
|
|
77,147 |
|
|
|
84,749 |
|
|
|
78,523 |
|
|
|
59,504 |
|
Provision for credit losses |
|
4,306 |
|
|
|
6,197 |
|
|
|
4,624 |
|
|
|
16,942 |
|
|
|
3,452 |
|
Net interest income after provision for credit
losses |
|
70,985 |
|
|
|
70,950 |
|
|
|
80,125 |
|
|
|
61,581 |
|
|
|
56,052 |
|
Noninterest
income |
|
|
|
|
|
|
|
|
|
Insurance commission and fee income |
|
6,185 |
|
|
|
7,011 |
|
|
|
5,054 |
|
|
|
5,666 |
|
|
|
5,693 |
|
Service charges and fees |
|
4,722 |
|
|
|
4,571 |
|
|
|
4,663 |
|
|
|
4,734 |
|
|
|
4,274 |
|
Mortgage banking revenue (loss) |
|
1,402 |
|
|
|
1,781 |
|
|
|
1,201 |
|
|
|
(929 |
) |
|
|
2,354 |
|
Other fee income |
|
970 |
|
|
|
942 |
|
|
|
1,132 |
|
|
|
1,162 |
|
|
|
638 |
|
Swap fee income |
|
331 |
|
|
|
384 |
|
|
|
292 |
|
|
|
25 |
|
|
|
1 |
|
Gain on sales of securities, net |
|
— |
|
|
|
144 |
|
|
|
— |
|
|
|
1,664 |
|
|
|
— |
|
Limited partnership investment income (loss) |
|
231 |
|
|
|
66 |
|
|
|
(230 |
) |
|
|
112 |
|
|
|
282 |
|
Gain (loss) on sales and disposals of other assets, net |
|
(111 |
) |
|
|
63 |
|
|
|
34 |
|
|
|
70 |
|
|
|
(279 |
) |
Other income |
|
1,906 |
|
|
|
1,422 |
|
|
|
1,283 |
|
|
|
1,219 |
|
|
|
1,253 |
|
Total noninterest income |
|
15,636 |
|
|
|
16,384 |
|
|
|
13,429 |
|
|
|
13,723 |
|
|
|
14,216 |
|
Noninterest
expense |
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
|
34,533 |
|
|
|
33,731 |
|
|
|
33,339 |
|
|
|
31,834 |
|
|
|
27,310 |
|
Occupancy and equipment, net |
|
6,578 |
|
|
|
6,503 |
|
|
|
5,863 |
|
|
|
5,399 |
|
|
|
4,514 |
|
Data processing |
|
2,837 |
|
|
|
2,916 |
|
|
|
2,868 |
|
|
|
2,689 |
|
|
|
2,413 |
|
Intangible asset amortization |
|
2,552 |
|
|
|
2,553 |
|
|
|
2,554 |
|
|
|
1,872 |
|
|
|
525 |
|
Office and operations |
|
2,716 |
|
|
|
2,303 |
|
|
|
2,277 |
|
|
|
2,121 |
|
|
|
2,162 |
|
Professional services |
|
1,557 |
|
|
|
1,525 |
|
|
|
1,145 |
|
|
|
1,188 |
|
|
|
420 |
|
Loan-related expenses |
|
1,256 |
|
|
|
1,465 |
|
|
|
1,676 |
|
|
|
1,599 |
|
|
|
1,517 |
|
Advertising and marketing |
|
1,469 |
|
|
|
1,456 |
|
|
|
1,505 |
|
|
|
1,196 |
|
|
|
859 |
|
Electronic banking |
|
1,216 |
|
|
|
1,009 |
|
|
|
1,058 |
|
|
|
1,087 |
|
|
|
896 |
|
Franchise tax expense |
|
897 |
|
|
|
975 |
|
|
|
1,017 |
|
|
|
957 |
|
|
|
838 |
|
Regulatory assessments |
|
1,732 |
|
|
|
951 |
|
|
|
1,242 |
|
|
|
877 |
|
|
|
802 |
|
Communications |
|
407 |
|
|
|
384 |
|
|
|
434 |
|
|
|
279 |
|
|
|
252 |
|
Merger-related expense |
|
— |
|
|
|
— |
|
|
|
1,179 |
|
|
|
3,614 |
|
|
|
807 |
|
Other expenses |
|
1,137 |
|
|
|
989 |
|
|
|
1,097 |
|
|
|
1,529 |
|
|
|
835 |
|
Total noninterest expense |
|
58,887 |
|
|
|
56,760 |
|
|
|
57,254 |
|
|
|
56,241 |
|
|
|
44,150 |
|
Income before income
tax expense |
|
27,734 |
|
|
|
30,574 |
|
|
|
36,300 |
|
|
|
19,063 |
|
|
|
26,118 |
|
Income tax expense |
|
5,974 |
|
|
|
6,272 |
|
|
|
6,822 |
|
|
|
2,820 |
|
|
|
4,807 |
|
Net
income |
$ |
21,760 |
|
|
$ |
24,302 |
|
|
$ |
29,478 |
|
|
$ |
16,243 |
|
|
$ |
21,311 |
|
Basic earnings per common
share |
$ |
0.71 |
|
|
$ |
0.79 |
|
|
$ |
0.96 |
|
|
$ |
0.57 |
|
|
$ |
0.90 |
|
Diluted earnings per common
share |
|
0.70 |
|
|
|
0.79 |
|
|
|
0.95 |
|
|
|
0.57 |
|
|
|
0.90 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Origin Bancorp,
Inc.Consolidated Balance
Sheets(Unaudited)
(Dollars in thousands) |
June 30, 2023 |
|
March 31, 2023 |
|
December 31,2022 |
|
September 30,2022 |
|
June 30,2022 |
Assets |
|
|
|
|
|
|
|
|
|
Cash and due from banks |
$ |
127,576 |
|
|
$ |
117,309 |
|
|
$ |
150,180 |
|
|
$ |
118,505 |
|
|
$ |
123,499 |
|
Interest-bearing deposits in
banks |
|
338,414 |
|
|
|
707,802 |
|
|
|
208,792 |
|
|
|
181,965 |
|
|
|
200,421 |
|
Total cash and cash equivalents |
|
465,990 |
|
|
|
825,111 |
|
|
|
358,972 |
|
|
|
300,470 |
|
|
|
323,920 |
|
Securities: |
|
|
|
|
|
|
|
|
|
AFS |
|
1,535,702 |
|
|
|
1,591,334 |
|
|
|
1,641,484 |
|
|
|
1,672,170 |
|
|
|
1,804,370 |
|
Held to maturity, net of allowance for credit losses |
|
11,234 |
|
|
|
11,191 |
|
|
|
11,275 |
|
|
|
11,285 |
|
|
|
4,288 |
|
Securities carried at fair value through income |
|
6,106 |
|
|
|
6,413 |
|
|
|
6,368 |
|
|
|
6,347 |
|
|
|
6,630 |
|
Total securities |
|
1,553,042 |
|
|
|
1,608,938 |
|
|
|
1,659,127 |
|
|
|
1,689,802 |
|
|
|
1,815,288 |
|
Non-marketable equity
securities held in other financial institutions |
|
58,446 |
|
|
|
77,036 |
|
|
|
67,378 |
|
|
|
53,899 |
|
|
|
76,822 |
|
Loans held for sale |
|
15,198 |
|
|
|
29,143 |
|
|
|
49,957 |
|
|
|
59,714 |
|
|
|
62,493 |
|
Loans |
|
7,622,689 |
|
|
|
7,375,823 |
|
|
|
7,090,022 |
|
|
|
6,882,681 |
|
|
|
5,528,093 |
|
Less: ALCL |
|
94,353 |
|
|
|
92,008 |
|
|
|
87,161 |
|
|
|
83,359 |
|
|
|
63,123 |
|
Loans, net of ALCL |
|
7,528,336 |
|
|
|
7,283,815 |
|
|
|
7,002,861 |
|
|
|
6,799,322 |
|
|
|
5,464,970 |
|
Premises and equipment,
net |
|
105,501 |
|
|
|
104,047 |
|
|
|
100,201 |
|
|
|
99,291 |
|
|
|
81,950 |
|
Mortgage servicing rights |
|
19,086 |
|
|
|
18,261 |
|
|
|
20,824 |
|
|
|
21,654 |
|
|
|
22,127 |
|
Cash surrender value of
bank-owned life insurance |
|
39,467 |
|
|
|
39,253 |
|
|
|
39,040 |
|
|
|
38,885 |
|
|
|
38,742 |
|
Goodwill |
|
128,679 |
|
|
|
128,679 |
|
|
|
128,679 |
|
|
|
136,793 |
|
|
|
34,153 |
|
Other intangible assets,
net |
|
44,724 |
|
|
|
47,277 |
|
|
|
49,829 |
|
|
|
52,384 |
|
|
|
15,900 |
|
Accrued interest receivable
and other assets |
|
206,694 |
|
|
|
196,956 |
|
|
|
209,199 |
|
|
|
210,425 |
|
|
|
175,159 |
|
Total assets |
$ |
10,165,163 |
|
|
$ |
10,358,516 |
|
|
$ |
9,686,067 |
|
|
$ |
9,462,639 |
|
|
$ |
8,111,524 |
|
Liabilities and
Stockholders’ Equity |
|
|
|
|
|
|
|
|
|
Noninterest-bearing
deposits |
$ |
2,123,699 |
|
|
$ |
2,247,782 |
|
|
$ |
2,482,475 |
|
|
$ |
2,667,489 |
|
|
$ |
2,214,919 |
|
Interest-bearing deposits |
|
4,738,460 |
|
|
|
4,779,023 |
|
|
|
4,505,940 |
|
|
|
4,361,423 |
|
|
|
3,598,417 |
|
Time deposits |
|
1,627,884 |
|
|
|
1,147,505 |
|
|
|
787,287 |
|
|
|
748,415 |
|
|
|
489,822 |
|
Total deposits |
|
8,490,043 |
|
|
|
8,174,310 |
|
|
|
7,775,702 |
|
|
|
7,777,327 |
|
|
|
6,303,158 |
|
FHLB advances and other
borrowings |
|
342,861 |
|
|
|
875,502 |
|
|
|
639,230 |
|
|
|
450,456 |
|
|
|
894,581 |
|
Subordinated indebtedness |
|
196,746 |
|
|
|
201,845 |
|
|
|
201,765 |
|
|
|
201,687 |
|
|
|
157,540 |
|
Accrued expenses and other
liabilities |
|
137,654 |
|
|
|
114,272 |
|
|
|
119,427 |
|
|
|
126,145 |
|
|
|
109,872 |
|
Total liabilities |
|
9,167,304 |
|
|
|
9,365,929 |
|
|
|
8,736,124 |
|
|
|
8,555,615 |
|
|
|
7,465,151 |
|
Stockholders’ equity: |
|
|
|
|
|
|
|
|
|
Common stock |
|
154,331 |
|
|
|
153,904 |
|
|
|
153,733 |
|
|
|
153,309 |
|
|
|
119,038 |
|
Additional paid-in
capital |
|
524,302 |
|
|
|
522,124 |
|
|
|
520,669 |
|
|
|
518,376 |
|
|
|
244,368 |
|
Retained earnings |
|
472,105 |
|
|
|
455,040 |
|
|
|
435,416 |
|
|
|
410,572 |
|
|
|
398,946 |
|
Accumulated other
comprehensive loss |
|
(152,879 |
) |
|
|
(138,481 |
) |
|
|
(159,875 |
) |
|
|
(175,233 |
) |
|
|
(115,979 |
) |
Total stockholders’ equity |
|
997,859 |
|
|
|
992,587 |
|
|
|
949,943 |
|
|
|
907,024 |
|
|
|
646,373 |
|
Total liabilities and stockholders’ equity |
$ |
10,165,163 |
|
|
$ |
10,358,516 |
|
|
$ |
9,686,067 |
|
|
$ |
9,462,639 |
|
|
$ |
8,111,524 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Origin Bancorp, Inc.Loan
Data(Unaudited)
|
At and For the Three Months Ended |
|
June 30, 2023 |
|
March 31, 2023 |
|
December 31,2022 |
|
September 30,2022 |
|
June 30,2022 |
|
|
|
|
|
|
|
|
|
|
LHFI |
(Dollars in thousands) |
Owner occupied commercial real estate |
$ |
915,861 |
|
|
$ |
855,887 |
|
|
$ |
843,006 |
|
|
$ |
800,981 |
|
|
$ |
609,358 |
|
Non-owner occupied commercial
real estate |
|
1,512,303 |
|
|
|
1,529,513 |
|
|
|
1,461,672 |
|
|
|
1,373,366 |
|
|
|
1,299,696 |
|
Construction/land/land
development |
|
1,022,239 |
|
|
|
948,626 |
|
|
|
945,625 |
|
|
|
853,311 |
|
|
|
635,556 |
|
Residential real estate |
|
1,633,658 |
|
|
|
1,588,491 |
|
|
|
1,477,538 |
|
|
|
1,399,182 |
|
|
|
1,005,623 |
|
Total real estate loans |
|
5,084,061 |
|
|
|
4,922,517 |
|
|
|
4,727,841 |
|
|
|
4,426,840 |
|
|
|
3,550,233 |
|
Commercial and industrial |
|
1,977,028 |
|
|
|
2,091,093 |
|
|
|
2,051,161 |
|
|
|
1,967,037 |
|
|
|
1,430,239 |
|
Mortgage warehouse lines of
credit |
|
537,627 |
|
|
|
337,529 |
|
|
|
284,867 |
|
|
|
460,573 |
|
|
|
531,888 |
|
Consumer |
|
23,973 |
|
|
|
24,684 |
|
|
|
26,153 |
|
|
|
28,231 |
|
|
|
15,733 |
|
Total LHFI |
|
7,622,689 |
|
|
|
7,375,823 |
|
|
|
7,090,022 |
|
|
|
6,882,681 |
|
|
|
5,528,093 |
|
Less: allowance for loan credit losses ("ALCL") |
|
94,353 |
|
|
|
92,008 |
|
|
|
87,161 |
|
|
|
83,359 |
|
|
|
63,123 |
|
LHFI, net |
$ |
7,528,336 |
|
|
$ |
7,283,815 |
|
|
$ |
7,002,861 |
|
|
$ |
6,799,322 |
|
|
$ |
5,464,970 |
|
|
|
|
|
|
|
|
|
|
|
Nonperforming
assets |
|
|
|
|
|
|
|
|
|
Nonperforming LHFI |
|
|
|
|
|
|
|
|
|
Commercial real estate |
$ |
3,510 |
|
|
$ |
3,100 |
|
|
$ |
526 |
|
|
$ |
431 |
|
|
$ |
224 |
|
Construction/land/land development |
|
183 |
|
|
|
226 |
|
|
|
270 |
|
|
|
366 |
|
|
|
373 |
|
Residential real estate |
|
16,345 |
|
|
|
8,969 |
|
|
|
7,712 |
|
|
|
7,641 |
|
|
|
7,478 |
|
Commercial and industrial |
|
13,480 |
|
|
|
4,730 |
|
|
|
1,383 |
|
|
|
5,134 |
|
|
|
5,930 |
|
Mortgage warehouse lines of credit |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
385 |
|
|
|
— |
|
Consumer |
|
91 |
|
|
|
53 |
|
|
|
49 |
|
|
|
74 |
|
|
|
80 |
|
Total nonperforming LHFI |
|
33,609 |
|
|
|
17,078 |
|
|
|
9,940 |
|
|
|
14,031 |
|
|
|
14,085 |
|
Nonperforming loans held for
sale |
|
— |
|
|
|
4,646 |
|
|
|
3,933 |
|
|
|
2,698 |
|
|
|
2,461 |
|
Total nonperforming loans |
|
33,609 |
|
|
|
21,724 |
|
|
|
13,873 |
|
|
|
16,729 |
|
|
|
16,546 |
|
Repossessed assets |
|
908 |
|
|
|
806 |
|
|
|
806 |
|
|
|
1,781 |
|
|
|
2,009 |
|
Total nonperforming assets |
$ |
34,517 |
|
|
$ |
22,530 |
|
|
$ |
14,679 |
|
|
$ |
18,510 |
|
|
$ |
18,555 |
|
Classified assets |
$ |
85,206 |
|
|
$ |
86,975 |
|
|
$ |
75,009 |
|
|
$ |
71,562 |
|
|
$ |
54,124 |
|
Past due LHFI(1) |
|
19,836 |
|
|
|
11,498 |
|
|
|
10,932 |
|
|
|
10,866 |
|
|
|
7,186 |
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan
credit losses |
|
|
|
|
|
|
|
|
|
Balance at beginning of
period |
$ |
92,008 |
|
|
$ |
87,161 |
|
|
$ |
83,359 |
|
|
$ |
63,123 |
|
|
$ |
62,173 |
|
Provision for loan credit losses |
|
4,264 |
|
|
|
6,158 |
|
|
|
3,982 |
|
|
|
15,787 |
|
|
|
2,503 |
|
ALCL - BTH merger |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
5,527 |
|
|
|
— |
|
Loans charged off |
|
2,751 |
|
|
|
2,293 |
|
|
|
2,537 |
|
|
|
1,628 |
|
|
|
2,192 |
|
Loan recoveries |
|
832 |
|
|
|
982 |
|
|
|
2,357 |
|
|
|
550 |
|
|
|
639 |
|
Net charge-offs |
|
1,919 |
|
|
|
1,311 |
|
|
|
180 |
|
|
|
1,078 |
|
|
|
1,553 |
|
Balance at end of period |
$ |
94,353 |
|
|
$ |
92,008 |
|
|
$ |
87,161 |
|
|
$ |
83,359 |
|
|
$ |
63,123 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Credit quality
ratios |
(Dollars in thousands) |
Total nonperforming assets to
total assets |
|
0.34 |
% |
|
|
0.22 |
% |
|
|
0.15 |
% |
|
|
0.20 |
% |
|
|
0.23 |
% |
Total nonperforming loans to
total loans |
|
0.44 |
|
|
|
0.29 |
|
|
|
0.19 |
|
|
|
0.24 |
|
|
|
0.30 |
|
Nonperforming LHFI to
LHFI |
|
0.44 |
|
|
|
0.23 |
|
|
|
0.14 |
|
|
|
0.20 |
|
|
|
0.25 |
|
Past due LHFI to LHFI |
|
0.26 |
|
|
|
0.16 |
|
|
|
0.15 |
|
|
|
0.16 |
|
|
|
0.13 |
|
ALCL to nonperforming
LHFI |
|
280.74 |
|
|
|
538.75 |
|
|
|
876.87 |
|
|
|
594.11 |
|
|
|
448.16 |
|
ALCL to total LHFI |
|
1.24 |
|
|
|
1.25 |
|
|
|
1.23 |
|
|
|
1.21 |
|
|
|
1.14 |
|
ALCL to total LHFI,
adjusted(2) |
|
1.32 |
|
|
|
1.30 |
|
|
|
1.28 |
|
|
|
1.29 |
|
|
|
1.25 |
|
Net charge-offs to total
average LHFI (annualized) |
|
0.10 |
|
|
|
0.07 |
|
|
|
0.01 |
|
|
|
0.07 |
|
|
|
0.12 |
|
____________________________(1) Past due LHFI are defined
as loans 30 days or more past due.(2) The ALCL to total LHFI,
adjusted is calculated for all periods after June 30, 2022, by
excluding the ALCL for warehouse loans from the total LHFI ALCL in
the numerator and excluding the warehouse loans from the LHFI in
the denominator. For periods at June 30, 2022, and prior, it is
calculated by excluding the ALCL for warehouse loans from the total
LHFI ALCL in the numerator and excluding the PPP and warehouse
loans from the LHFI in the denominator. Due to their low-risk
profile, mortgage warehouse loans require a disproportionately low
allocation of the ALCL and PPP loans are fully guaranteed by the
SBA.
Origin Bancorp,
Inc.Average Balances and
Yields/Rates(Unaudited)
|
Three Months Ended |
|
June 30, 2023 |
|
March 31, 2023 |
|
June 30, 2022 |
|
Average Balance |
|
Yield/Rate |
|
Average Balance |
|
Yield/Rate |
|
Average Balance |
|
Yield/Rate |
|
|
|
|
|
|
|
|
|
|
|
|
Assets |
(Dollars in thousands) |
Commercial real estate |
$ |
2,406,625 |
|
|
5.56 |
% |
|
$ |
2,342,545 |
|
|
5.37 |
% |
|
$ |
1,828,700 |
|
|
4.17 |
% |
Construction/land/land development |
|
972,032 |
|
|
6.70 |
|
|
|
974,914 |
|
|
6.48 |
|
|
|
587,872 |
|
|
4.52 |
|
Residential real estate |
|
1,615,211 |
|
|
4.91 |
|
|
|
1,519,325 |
|
|
4.85 |
|
|
|
966,363 |
|
|
4.30 |
|
Commercial and industrial ("C&I") |
|
2,059,285 |
|
|
7.59 |
|
|
|
2,070,356 |
|
|
7.42 |
|
|
|
1,398,802 |
|
|
4.26 |
|
Mortgage warehouse lines of credit |
|
396,348 |
|
|
6.49 |
|
|
|
213,201 |
|
|
5.72 |
|
|
|
444,851 |
|
|
4.10 |
|
Consumer |
|
24,812 |
|
|
7.26 |
|
|
|
26,017 |
|
|
8.10 |
|
|
|
15,979 |
|
|
6.03 |
|
LHFI |
|
7,474,313 |
|
|
6.18 |
|
|
|
7,146,358 |
|
|
6.03 |
|
|
|
5,242,567 |
|
|
4.26 |
|
Loans held for sale |
|
22,504 |
|
|
4.28 |
|
|
|
26,140 |
|
|
4.34 |
|
|
|
37,678 |
|
|
3.69 |
|
Loans receivable |
|
7,496,817 |
|
|
6.18 |
|
|
|
7,172,498 |
|
|
6.02 |
|
|
|
5,280,245 |
|
|
4.25 |
|
Investment securities-taxable |
|
1,371,361 |
|
|
2.43 |
|
|
|
1,395,857 |
|
|
2.37 |
|
|
|
1,610,400 |
|
|
1.77 |
|
Investment securities-nontaxable |
|
220,345 |
|
|
2.33 |
|
|
|
238,145 |
|
|
2.40 |
|
|
|
258,178 |
|
|
2.32 |
|
Non-marketable equity securities held in other financial
institutions |
|
79,143 |
|
|
5.92 |
|
|
|
71,089 |
|
|
3.72 |
|
|
|
51,052 |
|
|
4.79 |
|
Interest-bearing balances due from banks |
|
476,555 |
|
|
5.15 |
|
|
|
300,795 |
|
|
4.61 |
|
|
|
277,800 |
|
|
0.84 |
|
Total interest-earning assets |
|
9,644,221 |
|
|
5.50 |
|
|
|
9,178,384 |
|
|
5.31 |
|
|
|
7,477,675 |
|
|
3.53 |
|
Noninterest-earning
assets(1) |
|
546,135 |
|
|
|
|
|
605,218 |
|
|
|
|
|
467,045 |
|
|
|
Total assets |
$ |
10,190,356 |
|
|
|
|
$ |
9,783,602 |
|
|
|
|
$ |
7,944,720 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders’ Equity |
|
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities |
|
|
|
|
|
|
|
|
|
|
|
Savings and interest-bearing transaction accounts |
$ |
4,740,963 |
|
|
2.90 |
% |
|
$ |
4,648,397 |
|
|
2.47 |
% |
|
$ |
3,767,275 |
|
|
0.26 |
% |
Time deposits |
|
1,378,659 |
|
|
3.56 |
|
|
|
976,905 |
|
|
2.58 |
|
|
|
503,325 |
|
|
0.49 |
|
Total interest-bearing deposits |
|
6,119,622 |
|
|
3.05 |
|
|
|
5,625,302 |
|
|
2.49 |
|
|
|
4,270,600 |
|
|
0.29 |
|
FHLB advances and other borrowings |
|
606,148 |
|
|
5.26 |
|
|
|
457,478 |
|
|
5.21 |
|
|
|
417,121 |
|
|
1.34 |
|
Subordinated indebtedness |
|
200,160 |
|
|
5.09 |
|
|
|
201,809 |
|
|
5.14 |
|
|
|
157,517 |
|
|
4.64 |
|
Total interest-bearing liabilities |
|
6,925,930 |
|
|
3.30 |
|
|
|
6,284,589 |
|
|
2.77 |
|
|
|
4,845,238 |
|
|
0.52 |
|
Noninterest-bearing
liabilities |
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing deposits |
|
2,139,973 |
|
|
|
|
|
2,392,176 |
|
|
|
|
|
2,288,732 |
|
|
|
Other liabilities(1) |
|
127,630 |
|
|
|
|
|
130,793 |
|
|
|
|
|
143,427 |
|
|
|
Total liabilities |
|
9,193,533 |
|
|
|
|
|
8,807,558 |
|
|
|
|
|
7,277,397 |
|
|
|
Stockholders’
Equity |
|
996,823 |
|
|
|
|
|
976,044 |
|
|
|
|
|
667,323 |
|
|
|
Total liabilities and stockholders’ equity |
$ |
10,190,356 |
|
|
|
|
$ |
9,783,602 |
|
|
|
|
$ |
7,944,720 |
|
|
|
Net interest spread |
|
|
2.20 |
% |
|
|
|
2.54 |
% |
|
|
|
3.01 |
% |
NIM |
|
|
3.13 |
|
|
|
|
3.41 |
|
|
|
|
3.19 |
|
NIM - FTE(2) |
|
|
3.16 |
|
|
|
|
3.44 |
|
|
|
|
3.23 |
|
NIM - FTE, adjusted(3) |
|
|
3.14 |
|
|
|
|
3.36 |
|
|
|
|
3.23 |
|
____________________________(1) Includes Government
National Mortgage Association (“GNMA”) repurchase average balances
of zero, $4.4 million, and $35.8 million for the three months ended
June 30, 2023, March 31, 2023, and June 30, 2022, 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. During the quarter ended
December 31, 2022, the Company entered into a contract to sell the
servicing of these GNMA loans to a third party which closed during
the quarter ended March 31, 2023.(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.(3) NIM - FTE, adjusted, is calculated for the quarters
ended June 30, 2023, and March 31, 2023, by removing the net
purchase accounting accretion from the net interest income. For the
quarter ended June 30, 2022, it is calculated by removing average
PPP loans from average interest-earning assets and removing the
associated interest income (net of 35 basis points assumed cost of
funds on average PPP loan balances) from net interest income.
Origin Bancorp,
Inc.Non-GAAP Financial Measures
(Unaudited)
|
At and For the Three Months Ended |
|
June 30, 2023 |
|
March 31, 2023 |
|
December 31,2022 |
|
September 30,2022 |
|
June 30,2022 |
|
|
|
|
|
|
|
|
|
|
|
(Dollars in thousands, except per share amounts) |
Calculation of
adjusted net income: |
|
|
|
|
|
|
|
|
|
Net interest income after provision for credit losses |
$ |
70,985 |
|
|
$ |
70,950 |
|
|
$ |
80,125 |
|
|
$ |
61,581 |
|
|
$ |
56,052 |
|
Add: CECL provision for non-PCD loans |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
14,890 |
|
|
|
— |
|
Adjusted net interest income
after provision for credit losses |
|
70,985 |
|
|
|
70,950 |
|
|
|
80,125 |
|
|
|
76,471 |
|
|
|
56,052 |
|
|
|
|
|
|
|
|
|
|
|
Total noninterest income |
$ |
15,636 |
|
|
$ |
16,384 |
|
|
$ |
13,429 |
|
|
$ |
13,723 |
|
|
$ |
14,216 |
|
Less: GNMA MSR impairment |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1,950 |
) |
|
|
— |
|
Less: gain on sales of securities, net |
|
— |
|
|
|
144 |
|
|
|
— |
|
|
|
1,664 |
|
|
|
— |
|
Less: gain on sub-debt repurchase |
|
471 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Adjusted total noninterest
income |
|
15,165 |
|
|
|
16,240 |
|
|
|
13,429 |
|
|
|
14,009 |
|
|
|
14,216 |
|
|
|
|
|
|
|
|
|
|
|
Total noninterest expense |
$ |
58,887 |
|
|
$ |
56,760 |
|
|
$ |
57,254 |
|
|
$ |
56,241 |
|
|
$ |
44,150 |
|
Less: merger-related expenses |
|
— |
|
|
|
— |
|
|
|
1,179 |
|
|
|
3,614 |
|
|
|
807 |
|
Adjusted total noninterest
expense |
|
58,887 |
|
|
|
56,760 |
|
|
|
56,075 |
|
|
|
52,627 |
|
|
|
43,343 |
|
|
|
|
|
|
|
|
|
|
|
Income tax expense |
$ |
5,974 |
|
|
$ |
6,272 |
|
|
$ |
6,822 |
|
|
$ |
2,820 |
|
|
$ |
4,807 |
|
Add: income tax expense on adjustment items |
|
(99 |
) |
|
|
(30 |
) |
|
|
248 |
|
|
|
3,946 |
|
|
|
169 |
|
Adjusted income tax
expense |
|
5,875 |
|
|
|
6,242 |
|
|
|
7,070 |
|
|
|
6,766 |
|
|
|
4,976 |
|
|
|
|
|
|
|
|
|
|
|
Net
income |
$ |
21,760 |
|
|
$ |
24,302 |
|
|
$ |
29,478 |
|
|
$ |
16,243 |
|
|
$ |
21,311 |
|
Adjusted net
income |
$ |
21,388 |
|
|
$ |
24,188 |
|
|
$ |
30,409 |
|
|
$ |
31,087 |
|
|
$ |
21,949 |
|
|
|
|
|
|
|
|
|
|
|
Calculation of
adjusted PTPP earnings: |
|
|
|
|
|
|
|
|
|
Provision for credit
losses |
$ |
4,306 |
|
|
$ |
6,197 |
|
|
$ |
4,624 |
|
|
$ |
16,942 |
|
|
$ |
3,452 |
|
Less: CECL provision for non-PCD loans |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
14,890 |
|
|
|
— |
|
Adjusted provision for credit
losses |
$ |
4,306 |
|
|
$ |
6,197 |
|
|
$ |
4,624 |
|
|
$ |
2,052 |
|
|
$ |
3,452 |
|
|
|
|
|
|
|
|
|
|
|
Adjusted net
income |
$ |
21,388 |
|
|
$ |
24,188 |
|
|
$ |
30,409 |
|
|
$ |
31,087 |
|
|
$ |
21,949 |
|
Add: adjusted provision for credit losses |
|
4,306 |
|
|
|
6,197 |
|
|
|
4,624 |
|
|
|
2,052 |
|
|
|
3,452 |
|
Add: adjusted income tax expense |
|
5,875 |
|
|
|
6,242 |
|
|
|
7,070 |
|
|
|
6,766 |
|
|
|
4,976 |
|
Adjusted PTPP
Earnings |
$ |
31,569 |
|
|
$ |
36,627 |
|
|
$ |
42,103 |
|
|
$ |
39,905 |
|
|
$ |
30,377 |
|
|
|
|
|
|
|
|
|
|
|
Calculation of
adjusted dilutive EPS: |
|
|
|
|
|
|
|
|
|
Numerator: |
|
|
|
|
|
|
|
|
|
Adjusted net income |
$ |
21,388 |
|
|
$ |
24,188 |
|
|
$ |
30,409 |
|
|
$ |
31,087 |
|
|
$ |
21,949 |
|
Denominator: |
|
|
|
|
|
|
|
|
|
Weighted average diluted common shares outstanding |
|
30,872,834 |
|
|
|
30,882,156 |
|
|
|
30,867,511 |
|
|
|
28,481,619 |
|
|
|
23,788,164 |
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share |
$ |
0.70 |
|
|
$ |
0.79 |
|
|
$ |
0.95 |
|
|
$ |
0.57 |
|
|
$ |
0.90 |
|
Adjusted diluted
earnings per share |
|
0.69 |
|
|
|
0.78 |
|
|
|
0.99 |
|
|
|
1.09 |
|
|
|
0.92 |
|
|
|
|
|
|
|
|
|
|
|
Calculation of adjusted ROAA and adjusted
ROAE: |
|
|
|
|
|
|
|
|
Adjusted net income |
$ |
21,388 |
|
|
$ |
24,188 |
|
|
$ |
30,409 |
|
|
$ |
31,087 |
|
|
$ |
21,949 |
|
Divided by number of days in the quarter |
|
91 |
|
|
|
90 |
|
|
|
92 |
|
|
|
92 |
|
|
|
91 |
|
Multiplied by number of days in the year |
|
365 |
|
|
|
365 |
|
|
|
365 |
|
|
|
365 |
|
|
|
365 |
|
Annualized adjusted net
income |
$ |
85,787 |
|
|
$ |
98,096 |
|
|
$ |
120,644 |
|
|
$ |
123,334 |
|
|
$ |
88,037 |
|
|
|
|
|
|
|
|
|
|
|
Divided by total average
assets |
|
10,190,356 |
|
|
|
9,783,602 |
|
|
|
9,530,543 |
|
|
|
9,202,421 |
|
|
|
7,944,720 |
|
ROAA
(annualized) |
|
0.86 |
% |
|
|
1.01 |
% |
|
|
1.23 |
% |
|
|
0.70 |
% |
|
|
1.08 |
% |
Adjusted ROAA
(annualized) |
|
0.84 |
|
|
|
1.00 |
|
|
|
1.27 |
|
|
|
1.34 |
|
|
|
1.11 |
|
|
|
|
|
|
|
|
|
|
|
Divided by total average
stockholders' equity |
$ |
996,823 |
|
|
$ |
976,044 |
|
|
$ |
913,850 |
|
|
$ |
938,752 |
|
|
$ |
667,323 |
|
ROAE
(annualized) |
|
8.76 |
% |
|
|
10.10 |
% |
|
|
12.80 |
% |
|
|
6.86 |
% |
|
|
12.81 |
% |
Adjusted ROAE
(annualized) |
|
8.61 |
|
|
|
10.05 |
|
|
|
13.20 |
|
|
|
13.14 |
|
|
|
13.19 |
|
|
|
|
|
|
|
|
|
|
|
Calculation of adjusted PTPP ROAA and adjusted PTPP
ROAE: |
|
|
|
|
|
|
Adjusted PTPP earnings |
$ |
31,569 |
|
|
$ |
36,627 |
|
|
$ |
42,103 |
|
|
$ |
39,905 |
|
|
$ |
30,377 |
|
Divided by number of days in the quarter |
|
91 |
|
|
|
90 |
|
|
|
92 |
|
|
|
92 |
|
|
|
91 |
|
Multiplied by the number of days in the year |
|
365 |
|
|
|
365 |
|
|
|
365 |
|
|
|
365 |
|
|
|
365 |
|
Adjusted PTPP earnings,
annualized |
$ |
126,623 |
|
|
$ |
148,543 |
|
|
$ |
167,039 |
|
|
$ |
158,319 |
|
|
$ |
121,842 |
|
|
|
|
|
|
|
|
|
|
|
Divided by total average
assets |
$ |
10,190,356 |
|
|
$ |
9,783,602 |
|
|
$ |
9,530,543 |
|
|
$ |
9,202,421 |
|
|
$ |
7,944,720 |
|
Adjusted PTPP
ROAA(annualized) |
|
1.24 |
% |
|
|
1.52 |
% |
|
|
1.75 |
% |
|
|
1.72 |
% |
|
|
1.53 |
% |
|
|
|
|
|
|
|
|
|
|
Divided by total average
stockholders' equity |
$ |
996,823 |
|
|
$ |
976,044 |
|
|
$ |
913,850 |
|
|
$ |
938,752 |
|
|
$ |
667,323 |
|
Adjusted PTPP ROAE
(annualized) |
|
12.70 |
% |
|
|
15.22 |
% |
|
|
18.28 |
% |
|
|
16.86 |
% |
|
|
18.26 |
% |
Calculation of tangible common equity to tangible common
assets, book value per common share and adjusted tangible book
value per common share: |
|
|
Total assets |
$ |
10,165,163 |
|
|
$ |
10,358,516 |
|
|
$ |
9,686,067 |
|
|
$ |
9,462,639 |
|
|
$ |
8,111,524 |
|
Less: goodwill |
|
128,679 |
|
|
|
128,679 |
|
|
|
128,679 |
|
|
|
136,793 |
|
|
|
34,153 |
|
Less: other intangible assets, net |
|
44,724 |
|
|
|
47,277 |
|
|
|
49,829 |
|
|
|
52,384 |
|
|
|
15,900 |
|
Tangible assets |
|
9,991,760 |
|
|
|
10,182,560 |
|
|
|
9,507,559 |
|
|
|
9,273,462 |
|
|
|
8,061,471 |
|
|
|
|
|
|
|
|
|
|
|
Total common stockholders’
equity |
$ |
997,859 |
|
|
$ |
992,587 |
|
|
$ |
949,943 |
|
|
$ |
907,024 |
|
|
$ |
646,373 |
|
Less: goodwill |
|
128,679 |
|
|
|
128,679 |
|
|
|
128,679 |
|
|
|
136,793 |
|
|
|
34,153 |
|
Less: other intangible assets, net |
|
44,724 |
|
|
|
47,277 |
|
|
|
49,829 |
|
|
|
52,384 |
|
|
|
15,900 |
|
Tangible common equity |
|
824,456 |
|
|
|
816,631 |
|
|
|
771,435 |
|
|
|
717,847 |
|
|
|
596,320 |
|
Less: accumulated other comprehensive loss |
|
(152,879 |
) |
|
|
(138,481 |
) |
|
|
(159,875 |
) |
|
|
(175,233 |
) |
|
|
(115,979 |
) |
Adjusted tangible common
equity |
|
977,335 |
|
|
|
955,112 |
|
|
|
931,310 |
|
|
|
893,080 |
|
|
|
712,299 |
|
Divided by common shares
outstanding at the end of the period |
|
30,866,205 |
|
|
|
30,780,853 |
|
|
|
30,746,600 |
|
|
|
30,661,734 |
|
|
|
23,807,677 |
|
Book value per common
share |
$ |
32.33 |
|
|
$ |
32.25 |
|
|
$ |
30.90 |
|
|
$ |
29.58 |
|
|
$ |
27.15 |
|
Tangible book value
per common share |
|
26.71 |
|
|
|
26.53 |
|
|
|
25.09 |
|
|
|
23.41 |
|
|
|
25.05 |
|
Adjusted tangible book
value per common share |
|
31.66 |
|
|
|
31.03 |
|
|
|
30.29 |
|
|
|
29.13 |
|
|
|
29.92 |
|
Tangible common equity
to tangible assets |
|
8.25 |
% |
|
|
8.02 |
% |
|
|
8.11 |
% |
|
|
7.74 |
% |
|
|
7.40 |
% |
|
|
|
|
|
|
|
|
|
|
Calculation of ROATCE and adjusted ROATCE: |
|
|
|
|
|
|
|
|
Net income |
$ |
21,760 |
|
|
$ |
24,302 |
|
|
$ |
29,478 |
|
|
$ |
16,243 |
|
|
$ |
21,311 |
|
Divided by number of days in the quarter |
|
91 |
|
|
|
90 |
|
|
|
92 |
|
|
|
92 |
|
|
|
91 |
|
Multiplied by number of days in the year |
|
365 |
|
|
|
365 |
|
|
|
365 |
|
|
|
365 |
|
|
|
365 |
|
Annualized net income |
$ |
87,279 |
|
|
$ |
98,558 |
|
|
$ |
116,951 |
|
|
$ |
64,442 |
|
|
$ |
85,478 |
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income |
$ |
21,388 |
|
|
$ |
24,188 |
|
|
$ |
30,409 |
|
|
$ |
31,087 |
|
|
$ |
21,949 |
|
Divided by number of days in the quarter |
|
91 |
|
|
|
90 |
|
|
|
92 |
|
|
|
92 |
|
|
|
91 |
|
Multiplied by number of days in the year |
|
365 |
|
|
|
365 |
|
|
|
365 |
|
|
|
365 |
|
|
|
365 |
|
Annualized adjusted net
income |
$ |
85,787 |
|
|
$ |
98,096 |
|
|
$ |
120,644 |
|
|
$ |
123,334 |
|
|
$ |
88,037 |
|
|
|
|
|
|
|
|
|
|
|
Total average common
stockholders’ equity |
$ |
996,823 |
|
|
$ |
976,044 |
|
|
$ |
913,850 |
|
|
$ |
938,752 |
|
|
$ |
667,323 |
|
Less: average goodwill |
|
128,679 |
|
|
|
128,679 |
|
|
|
131,302 |
|
|
|
95,696 |
|
|
|
34,153 |
|
Less: average other intangible assets, net |
|
46,379 |
|
|
|
48,950 |
|
|
|
51,495 |
|
|
|
40,918 |
|
|
|
16,242 |
|
Average tangible common
equity |
|
821,765 |
|
|
|
798,415 |
|
|
|
731,053 |
|
|
|
802,138 |
|
|
|
616,928 |
|
|
|
|
|
|
|
|
|
|
|
ROATCE |
|
10.62 |
% |
|
|
12.34 |
% |
|
|
16.00 |
% |
|
|
8.03 |
% |
|
|
13.86 |
% |
Adjusted
ROATCE |
|
10.44 |
|
|
|
12.29 |
|
|
|
16.50 |
|
|
|
15.38 |
|
|
|
14.27 |
|
Calculation of
adjusted efficiency ratio: |
|
|
|
|
|
|
|
|
|
Total noninterest expense |
$ |
58,887 |
|
|
$ |
56,760 |
|
|
$ |
57,254 |
|
|
$ |
56,241 |
|
|
$ |
44,150 |
|
Less: insurance and mortgage
noninterest expense |
|
9,156 |
|
|
|
8,033 |
|
|
|
8,031 |
|
|
|
8,479 |
|
|
|
8,397 |
|
Less: merger-related expenses |
|
— |
|
|
|
— |
|
|
|
1,179 |
|
|
|
3,614 |
|
|
|
807 |
|
Adjusted total noninterest
expense |
|
49,731 |
|
|
|
48,727 |
|
|
|
48,044 |
|
|
|
44,148 |
|
|
|
34,946 |
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
$ |
75,291 |
|
|
$ |
77,147 |
|
|
$ |
84,749 |
|
|
$ |
78,523 |
|
|
$ |
59,504 |
|
Less: insurance and mortgage
net interest income |
|
1,574 |
|
|
|
1,493 |
|
|
|
1,376 |
|
|
|
1,208 |
|
|
|
1,082 |
|
Add: Total noninterest income |
|
15,636 |
|
|
|
16,384 |
|
|
|
13,429 |
|
|
|
13,723 |
|
|
|
14,216 |
|
Less: insurance and mortgage
noninterest income |
|
7,587 |
|
|
|
8,792 |
|
|
|
6,255 |
|
|
|
4,737 |
|
|
|
8,047 |
|
Less: gain on sale of securities, net |
|
— |
|
|
|
144 |
|
|
|
— |
|
|
|
1,664 |
|
|
|
— |
|
Less: gain on sub-debt repurchase |
|
471 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Adjusted total revenue |
|
81,295 |
|
|
|
83,102 |
|
|
|
90,547 |
|
|
|
84,637 |
|
|
|
64,591 |
|
|
|
|
|
|
|
|
|
|
|
Efficiency
ratio |
|
64.76 |
% |
|
|
60.69 |
% |
|
|
58.32 |
% |
|
|
60.97 |
% |
|
|
59.89 |
% |
Adjusted efficiency
ratio |
|
61.17 |
|
|
|
58.64 |
|
|
|
53.06 |
|
|
|
52.16 |
|
|
|
54.10 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, |
|
|
2023 |
|
|
|
2022 |
|
|
|
|
|
|
(Dollars in thousands, except per share amounts) |
Calculation of
adjusted net income: |
|
|
|
Net interest income after
provision for credit losses |
$ |
141,935 |
|
|
$ |
108,881 |
|
|
|
|
|
Total noninterest income |
$ |
32,020 |
|
|
$ |
30,122 |
|
Less: gain on sales of securities, net |
|
144 |
|
|
|
— |
|
Less: gain on sub-debt repurchase |
|
471 |
|
|
|
— |
|
Adjusted total noninterest
income |
|
31,405 |
|
|
|
30,122 |
|
|
|
|
|
Total noninterest expense |
$ |
115,647 |
|
|
$ |
86,924 |
|
Less: merger-related expense |
|
— |
|
|
|
1,378 |
|
Adjusted total noninterest
expense |
|
115,647 |
|
|
|
85,546 |
|
|
|
|
|
Income tax expense |
$ |
12,246 |
|
|
$ |
10,085 |
|
Add: income tax expense on adjustment items |
|
(129 |
) |
|
|
289 |
|
Adjusted income tax
expense |
|
12,117 |
|
|
|
10,374 |
|
|
|
|
|
Net
Income |
$ |
46,062 |
|
|
$ |
41,994 |
|
Adjusted net
income |
$ |
45,576 |
|
|
$ |
43,083 |
|
|
|
|
|
Calculation of
adjusted PTPP earnings: |
|
|
|
Provision for credit
losses |
$ |
10,503 |
|
|
$ |
3,125 |
|
|
|
|
|
Adjusted net
income |
$ |
45,576 |
|
|
$ |
43,083 |
|
Add: provision for credit losses |
|
10,503 |
|
|
|
3,125 |
|
Add: adjusted income tax expense |
|
12,117 |
|
|
|
10,374 |
|
Adjusted PTPP
earnings |
$ |
68,196 |
|
|
$ |
56,582 |
|
|
|
|
|
Calculation of
adjusted dilutive EPS: |
|
|
|
Numerator: |
|
|
|
Adjusted net income |
$ |
45,576 |
|
|
$ |
43,083 |
|
Denominator: |
|
|
|
Weighted average diluted common shares outstanding |
|
30,881,072 |
|
|
|
23,780,939 |
|
Diluted earnings per
share |
$ |
1.49 |
|
|
$ |
1.77 |
|
Adjusted diluted
earnings per share |
|
1.48 |
|
|
|
1.81 |
|
Calculation of
adjusted ROAA and adjusted ROAE: |
|
|
|
Adjusted net income |
$ |
45,576 |
|
|
$ |
43,083 |
|
Divided by the year-to-date number of days |
|
181 |
|
|
|
181 |
|
Multiplied by number of days in the year |
|
365 |
|
|
|
365 |
|
Annualized adjusted net
income |
$ |
91,907 |
|
|
$ |
86,880 |
|
|
|
|
|
Divided by total average
assets |
$ |
9,988,103 |
|
|
$ |
7,994,705 |
|
ROAA
(annualized) |
|
0.93 |
% |
|
|
1.06 |
% |
Adjusted ROAA
(annualized) |
|
0.92 |
|
|
|
1.09 |
|
|
|
|
|
Divided by total average
stockholders' equity |
$ |
986,491 |
|
|
$ |
694,761 |
|
ROAE
(annualized) |
|
9.42 |
% |
|
|
12.19 |
% |
Adjusted ROAE
(annualized) |
|
9.32 |
|
|
|
12.51 |
|
|
|
|
|
Calculation of
adjusted PTPP ROAA and adjusted PTPP ROAE: |
|
|
|
Adjusted PTPP Earnings |
$ |
68,196 |
|
|
$ |
56,582 |
|
Divided by the year-to-date number of days |
|
181 |
|
|
|
181 |
|
Multiplied by number of days in the year |
|
365 |
|
|
|
365 |
|
Annualized adjusted PTPP
Earnings |
$ |
137,522 |
|
|
$ |
114,102 |
|
|
|
|
|
Divided by total average
assets |
$ |
9,988,103 |
|
|
$ |
7,994,705 |
|
Adjusted PTPP ROAA
(annualized) |
|
1.38 |
% |
|
|
1.43 |
% |
|
|
|
|
Divided by total average
stockholders' equity |
$ |
986,491 |
|
|
$ |
694,761 |
|
Adjusted PTPP ROAE
(annualized) |
|
13.94 |
% |
|
|
16.42 |
% |
Calculation of ROATCE and adjusted ROATCE: |
|
|
Net income |
$ |
46,062 |
|
|
$ |
41,994 |
|
Divided by the year-to-date number of days |
|
181 |
|
|
|
181 |
|
Multiplied by number of days in the year |
|
365 |
|
|
|
365 |
|
Annualized net income |
$ |
92,887 |
|
|
$ |
84,684 |
|
|
|
|
|
Adjusted net income |
$ |
45,576 |
|
|
$ |
43,083 |
|
Divided by the year-to-date number of days |
|
181 |
|
|
|
181 |
|
Multiplied by number of days in the year |
|
365 |
|
|
|
365 |
|
Annualized adjusted net
income |
$ |
91,907 |
|
|
$ |
86,880 |
|
|
|
|
|
Total average common
stockholders’ equity |
$ |
986,491 |
|
|
$ |
694,761 |
|
Less: average goodwill |
|
128,679 |
|
|
|
34,259 |
|
Less: average other intangible assets, net |
|
47,657 |
|
|
|
16,507 |
|
Average tangible common
equity |
|
810,155 |
|
|
|
643,995 |
|
|
|
|
|
ROATCE |
|
11.47 |
% |
|
|
13.15 |
% |
Adjusted
ROATCE |
|
11.34 |
|
|
|
13.49 |
|
|
|
|
|
Calculation of
adjusted efficiency ratio: |
|
|
|
Total noninterest expense |
$ |
115,647 |
|
|
$ |
86,924 |
|
Less: insurance and mortgage noninterest expense |
|
17,189 |
|
|
|
17,023 |
|
Less: merger-related expenses |
|
— |
|
|
|
1,378 |
|
Adjusted total noninterest
expense |
|
98,458 |
|
|
|
68,523 |
|
|
|
|
|
Net interest income |
$ |
152,438 |
|
|
$ |
112,006 |
|
Less: insurance and mortgage net interest income |
|
3,067 |
|
|
|
1,957 |
|
Add: total noninterest income |
|
32,020 |
|
|
|
30,122 |
|
Less: insurance and mortgage noninterest income |
|
16,379 |
|
|
|
18,599 |
|
Less: gain on sale of securities, net |
|
144 |
|
|
|
— |
|
Less: gain on sub-debt repurchase |
|
471 |
|
|
|
— |
|
Adjusted total revenue |
|
164,397 |
|
|
|
121,572 |
|
|
|
|
|
Efficiency
ratio |
|
62.70 |
% |
|
|
61.16 |
% |
Adjusted efficiency
ratio |
|
59.89 |
|
|
|
56.36 |
|
|
|
|
|
|
|
|
|
Origin Bancorp (NYSE:OBK)
Gráfica de Acción Histórica
De May 2024 a Jun 2024
Origin Bancorp (NYSE:OBK)
Gráfica de Acción Histórica
De Jun 2023 a Jun 2024