Origin Bancorp, Inc. (NYSE: OBK) (“Origin,” “we,” “our” or the
“Company”), the holding company for Origin Bank (the “Bank”), today
announced net income of $13.4 million, or $0.43 diluted earnings
per share for the quarter ended December 31, 2023, compared to net
income of $24.3 million, or $0.79 diluted earnings per share, for
the quarter ended September 30, 2023. Adjusted pre-tax,
pre-provision (“adjusted PTPP”)(1) earnings was $26.7 million for
the quarter ended December 31, 2023, compared to $30.7 million for
the linked quarter. Adjusted diluted earnings per common share(1)
was $0.60 for the quarter ended December 31, 2023, compared to
$0.71 for the linked quarter.
Net income for the year ended December 31, 2023, was
$83.8 million, or $2.71 diluted earnings per share,
representing a decrease of $0.57, or 17.4%, from diluted earnings
per share of $3.28 for the year ended December 31, 2022. Adjusted
PTPP earnings for the year ended December 31, 2023, was
$125.5 million, representing a decrease of $13.1 million,
or 9.4% from the year ended December 31, 2022. Adjusted diluted
earnings per common share(1) was $2.64 for the year ended December
31, 2023, compared to $3.91 for the year ended December 31,
2022.
“The moves we made in 2023 and the initiatives that we continue
to prioritize are all aimed at long-term profitable growth,” said
Drake Mills, chairman, president and CEO of Origin Bancorp, Inc.
“Our expansion into South Alabama and the Florida Panhandle, along
with strengthening the balance sheet give me great confidence as we
move into the new year. Our business model is built to last, and
more importantly, one that is scalable as we look to continue our
growth trajectory.”
(1) Adjusted PTPP earnings and adjusted diluted earnings per
common share 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.
Financial Highlights
- Total loans held for investment
(“LHFI”) were $7.66 billion at December 31, 2023, reflecting an
increase of $92.9 million, or 1.2%, compared to September 30, 2023.
LHFI, excluding mortgage warehouse lines of credit (“MW LOC”), were
$7.33 billion at December 31, 2023, reflecting an increase of $49.2
million, or 0.7%, compared to September 30, 2023.
- Total deposits were $8.25 billion at
December 31, 2023, reflecting a decrease of $123.4 million, or
1.5%, compared to September 30, 2023. Deposits, excluding brokered
deposits, were $7.81 billion reflecting an increase of $100.9
million, or 1.3%, compared to September 30, 2023.
- Provision for credit losses was $2.7
million for the quarter ended December 31, 2023, compared to $3.5
million for the linked quarter. The allowance for loan credit
losses (“ALCL”) to nonperforming LHFI was 321.66% at December 31,
2023, compared to 301.12% at September 30, 2023.
- Loans held for investment (“LHFI”),
excluding MW LOC, to deposits were 88.8% at December 31, 2023,
compared to 87.0% at September 30, 2023. Cash and liquid securities
as a percentage of total assets was 10.9% at December 31, 2023,
compared to 11.6% at September 30, 2023.
- Book value per common share was
$34.30 at December 31, 2023, reflecting an increase of $1.98, or
6.1%, compared to the linked quarter. Tangible book value per
common share(1) was $28.68 at December 31, 2023, reflecting an
increase of $1.90, or 7.1%, compared to the linked quarter.
- During December 2023, we sold
$78.9 million of available-for-sale investment securities at a
loss of $4.6 million, in order to build liquidity to support
loan growth, including loan growth our new Southeast market, which
negatively impacted our diluted EPS by $0.12 for the quarter ended
December 31, 2023.
- At December 31, 2023, and September
30, 2023, Company level common equity Tier 1 capital to
risk-weighted assets was 11.83%, and 11.46%, respectively, the Tier
1 leverage ratio was 10.50% and 10.00%, respectively, and the total
capital ratio was 15.02% and 14.61%, respectively. Tangible common
equity to tangible assets(1) was 9.31% at December 31, 2023,
compared to 8.66% at September 30, 2023.
- Entered our new Southeast market
with two loan production offices with an expected staffing of eight
experienced lenders and their support personnel located in Mobile,
Alabama and Fort Walton Beach, Florida.
(1) Tangible book value per common share 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.
Results of Operations for the Three
Months Ended December 31, 2023
Net Interest Income and Net Interest
Margin
Net interest income for the quarter ended December 31, 2023, was
$73.0 million, a decrease of $1.1 million, or 1.5%, compared
to the linked quarter, primarily due to a $1.2 million
increase in total interest expense. Increases in interest rates
drove a $3.9 million increase in total deposit interest
expense, which was partially offset by a $2.9 million decrease
in interest expense paid on FHLB advances and other borrowings due
to lower average balances during the current quarter compared to
the linked quarter.
Increases in interest rates on LHFI drove a $2.4 million
increase in interest income and increases in average LHFI principal
balances, excluding MW LOC, drove interest income higher by
$2.0 million during the current quarter compared to the linked
quarter. These increases in interest income were offset by a
decrease of $1.9 million in interest income earned on MW LOC
due to lower average balances during the current quarter compared
to the linked quarter. Lower average balances of investment
securities drove a $1.5 million decline in interest income
earned on investment securities during the current quarter compared
to the linked quarter, in part due to the sale of
$181.9 million and $78.9 million in investment securities
late in the third quarter of 2023 and during December 2023,
respectively, as described in further detail below.
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 four more times during 2023, with the most recent and
current Federal Funds target rate range being set on July 26, 2023,
at 5.25% to 5.50%. By December 31, 2023, the Federal Funds target
rate range had increased 525 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.
Recently, Federal Reserve Board chairman, Jerome Powell, has
indicated that the Federal Funds rate may be at or near its
peak.
The average rate on interest-bearing deposits increased to 3.71%
for the quarter ended December 31, 2023, compared to 3.47% for the
quarter ended September 30, 2023. The average savings and
interest-bearing transaction account balances increased
$56.4 million to $4.78 billion for the quarter ended
December 31, 2023, from $4.73 billion for the linked quarter,
primarily due to a $69.6 million increase in average money market
deposit balances. Average balances in FHLB advances and other
borrowings decreased to $22.6 million for the quarter ended
December 31, 2023, compared to $230.8 million for the linked
quarter, primarily due to the repayment of short-term advances
during the linked quarter.
The yield on LHFI was 6.46% for the quarter ended December 31,
2023, an increase of 11 basis points from 6.35% for the quarter
ended September 30, 2023. Higher interest rates and increases in
average loan balances on real estate loans drove a
$1.6 million and $1.3 million increase in interest income
earned on LHFI, respectively, offset by a $1.9 million decline
in interest income due to lower MW LOC loan balances during the
current quarter. Average MW LOC loan balances declined to
$269.2 million for the quarter ended December 31, 2023,
compared to $376.3 million for the linked quarter, however MW
LOC ending loan balances increased late in the current quarter to
$330.0 million at December 31, 2023, from $286.3 million
at September 30, 2023.
The fully tax-equivalent net interest margin (“NIM-FTE”) has
been impacted by margin compression over the previous four quarters
as rates on interest-bearing liabilities rose faster than yields on
interest-earning assets when compared to the rates and yields in
the comparable linked quarters. The quarter ended December 31,
2023, was the first quarter since the quarter ended September 30,
2022, that the yield on interest-earnings assets increased by more
than the rate on interest-bearing liabilities when compared to the
linked quarter. The yield earned on interest-earning assets for the
quarter ended December 31, 2023, was 5.86%, an increase of 17 and
90 basis points compared to the linked quarter and the prior year
same quarter, respectively. The average rate paid on total
interest-bearing liabilities for the quarter ended December 31,
2023, was 3.75%, representing a 16 and a 196 basis point increase
compared to the linked quarter and the prior year same quarter,
respectively. The NIM-FTE was 3.19% for the quarter ended December
31, 2023, representing a five basis point increase and a 62 basis
point decrease compared to the linked quarter and the prior year
same quarter, respectively. There was a minimal impact to the
NIM-FTE as a result of accretion income due to the BT Holdings,
Inc. (“BTH”) merger for the current and linked quarter, and an
eight basis points increase for the quarter ended December 31,
2022.
During the month ended December 31, 2023, we sold available for
sale investment securities with a book value of $78.9 million
and realized a loss of $4.6 million. We intend to use the
proceeds in order to support loan growth in our markets, including
our new Southeast market; however, in the interim, the proceeds
will be held in interest-earning deposit accounts at other banks
with an estimated annual yield of 5.4%. Due to the timing of this
transaction, the sale positively impacted our NIM-FTE by one basis
point for the quarter ended December 31, 2023. While the associated
loss resulted in a $0.12 negative impact to diluted EPS for the
quarter ended December 31, 2023, the difference between the
relatively low yield on the securities sold and the higher yield of
either interest-earning deposits in banks and new loan originations
as we deploy proceeds was an attractive trade-off. Depending on how
long it takes to deploy from cash to loans, we estimate an
annualized positive forward impact to NIM-FTE of three to five
basis points, an estimated annualized forward diluted EPS benefit
of approximately $0.06 to $0.11, and an estimated earn-back period
of 1.9 to 1.1 years. The metrics above used the estimated
annualized tax-effected net interest income generated in excess of
the weighted average tax-effected yield of 2.04% on the securities
sold compared to an estimated interest yield of 5.4% if the
proceeds are invested in interest-earning deposits at other banks,
or 7.7% if the proceeds are used to fund new loan production.
Credit Quality
The table below includes key credit quality information:
|
At and For the Three Months Ended |
|
Change |
|
% Change |
(Dollars in thousands,
unaudited) |
December 31, 2023 |
|
September 30, 2023 |
|
December 31,2022 |
|
Linked Quarter |
|
Linked Quarter |
Past due LHFI |
$ |
26,043 |
|
|
$ |
20,347 |
|
|
$ |
10,932 |
|
|
$ |
5,696 |
|
|
28.0 |
% |
ALCL |
|
96,868 |
|
|
|
95,177 |
|
|
|
87,161 |
|
|
|
1,691 |
|
|
1.8 |
|
Classified loans |
|
80,545 |
|
|
|
64,021 |
|
|
|
74,203 |
|
|
|
16,524 |
|
|
25.8 |
|
Total nonperforming LHFI |
|
30,115 |
|
|
|
31,608 |
|
|
|
9,940 |
|
|
|
(1,493 |
) |
|
(4.7 |
) |
Provision for credit
losses |
|
2,735 |
|
|
|
3,515 |
|
|
|
4,624 |
|
|
|
(780 |
) |
|
(22.2 |
) |
Net charge-offs |
|
1,891 |
|
|
|
2,686 |
|
|
|
180 |
|
|
|
(795 |
) |
|
(29.6 |
) |
Credit quality
ratios(1): |
|
|
|
|
|
|
|
|
|
ALCL to nonperforming LHFI |
|
321.66 |
% |
|
|
301.12 |
% |
|
|
876.87 |
% |
|
2054 bp |
|
N/A |
ALCL to total LHFI |
|
1.26 |
|
|
|
1.26 |
|
|
|
1.23 |
|
|
0 bp |
|
N/A |
ALCL to total LHFI, adjusted(2) |
|
1.31 |
|
|
|
1.30 |
|
|
|
1.28 |
|
|
1 bp |
|
N/A |
Nonperforming LHFI to LHFI |
|
0.39 |
|
|
|
0.42 |
|
|
|
0.14 |
|
|
-3 bp |
|
N/A |
Net charge-offs to total average LHFI (annualized) |
|
0.10 |
|
|
|
0.14 |
|
|
|
0.01 |
|
|
-4 bp |
|
N/A |
___________________________(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 by excluding the ALCL for MW LOC loans from the total
LHFI ALCL in the numerator and excluding the MW LOC loans from the
LHFI in the denominator. Due to their low-risk profile, MW LOC
loans require a disproportionately low allocation of the ALCL.
We recorded a credit loss provision of $2.7 million during
the quarter ended December 31, 2023, compared to $3.5 million
recorded during the linked quarter. The decrease is primarily due
to the stable credit risk profile of our LHFI portfolio along with
an $1.4 million increase in recoveries of loan losses
experienced during the quarter ended December 31, 2023, compared to
the linked quarter. Also contributing to the decrease in provision
was a $827,000 release of provision on our securities portfolio
during the quarter ended December 31, 2023.
The ALCL to nonperforming LHFI increased to 321.7% at December
31, 2023, compared to 301.1% at September 30, 2023, and
nonperforming LHFI to LHFI decreased over the past quarter to 0.39%
compared to 0.42% for the linked quarter. Quarterly net charge-offs
decreased to $1.9 million from $2.7 million for the
linked quarter, primarily due to a $1.2 million recovery on
one commercial and industrial loan relationship in the current
quarter, with no similar recovery during the linked quarter.
Noninterest Income
Noninterest income for the quarter ended December 31, 2023, was
$8.2 million, a decrease of $9.9 million, or 54.8%, from the linked
quarter. The decrease from the linked quarter was primarily driven
by decreases of $11.0 million, $1.6 million and $997,000 in other
noninterest income, mortgage banking revenue and insurance
commission and fee income, partially offset by a decrease of $2.6
million in loss on the sale of securities.
The decrease in other noninterest income for the quarter ended
December 31, 2023, compared to the linked quarter was primarily due
to a $10.1 million positive valuation adjustment recorded on one of
our non-marketable equity securities during the linked quarter,
with no such valuation adjustment recorded during the current
quarter.
The loss on the disposition of securities was due to the sale of
available for sale investment securities with a current book value
of $78.9 million, which realized a loss on sale of
$4.6 million. We intend to use the proceeds in order to
support loan growth in our markets, including our new Southeast
market, as previously discussed. We also sold investment securities
with a book value of $181.9 million late in the linked quarter
and realized a loss on sale of $7.2 million.
The decline in mortgage banking revenue was primarily due to a
$1.8 million impairment recorded during the quarter ended
December 31, 2023, in conjunction with the planned sale of our
mortgage servicing rights asset.
The $997,000 decrease in insurance commission and fee income was
primarily attributable to a decline in property and casualty direct
bill revenue as the linked quarter reflected several significant
renewals, with the remainder of the decrease being driven by other
seasonality factors.
Noninterest Expense
Noninterest expense for the quarter ended December 31, 2023, was
$60.9 million, an increase of $2.2 million, or 3.8% from the linked
quarter. The increase from the linked quarter was primarily due to
a $1.3 million increase in salaries and employee benefits expense
and several other less meaningful changes in noninterest expense
line items.
The $1.3 million increase in salaries and employee benefits
expense was primarily due to increases of $749,000 and $299,000 in
medical self-insurance costs and nonrecurring fees primarily
related to our new Southeast market, respectively.
Income Taxes
The effective tax rate was 23.5% during the quarter ended
December 31, 2023, compared to 19.1% during the linked quarter
primarily due to the tax impact of the favorable change in
unrealized gain/loss on our portfolio of available for sale
investment securities during the current quarter as well as an
increase in stock compensation expense. The effective tax rate was
20.9% for the year ended December 31, 2023.
Financial Condition
Loans
- Total LHFI at December 31, 2023, were $7.66 billion, an
increase of $92.9 million, or 1.2%, from $7.57 billion at September
30, 2023, and an increase of $570.9 million, or 8.1%, compared to
December 31, 2022.
- MW LOC totaled $330.0 million at December 31, 2023, an increase
of $43.7 million, or 15.3%, compared to the linked quarter and an
increase of $45.1 million, or 15.8%, compared to December 31, 2022.
Much of the current quarter growth in MW LOC occurred during the
last few days of the quarter. Average MW LOCs declined $107.1
million during the quarter ended December 31, 2023, compared to the
linked quarter.
- Residential real estate loans were $1.73 billion at December
31, 2023, an increase of $46.8 million, or 2.8%, from the linked
quarter, contributing 50.4% of the total loan growth for the
quarter ended December 31, 2023.
Securities
- Total securities at December 31, 2023, were $1.27 billion, a
decrease of $36.3 million, or 2.8%, compared to the linked
quarter and a decrease of $387.1 million, or 23.3%, compared to
December 31, 2022.
- The decrease was primarily due to sales, maturities and calls,
as well as normal principal payments. During the month ended
December 31, 2023, we made a strategic decision to sell available
for sale investment securities with a book value of
$78.9 million and realized a loss of $4.6 million, the
proceeds of which will be used to support loan growth in our
markets, including our new Southeast market, as previously
discussed.
- Accumulated other comprehensive loss, net of taxes, primarily
associated with the available for sale (“AFS”) portfolio, was
$121.0 million at December 31, 2023, an improvement of $51.7
million, or 29.9%, from the linked quarter.
- The weighted average effective
duration for the total securities portfolio was 4.28 years as of
December 31, 2023, compared to 4.49 years as of September 30,
2023.
Deposits
- Total deposits at December 31, 2023, were $8.25 billion, a
decrease of $123.4 million, or 1.5%, compared to the linked
quarter, and represented an increase of $475.4 million, or 6.1%,
from December 31, 2022.
- The decrease in the current quarter compared to the linked
quarter was primarily due to decreases of $224.2 million and
$89.0 million in brokered time deposits and
noninterest-bearing deposits, respectively. These reductions were
partially offset by an increase of $127.6 million in
interest-bearing demand deposits. Excluding brokered time deposits,
total deposits increased 1.3% from the linked quarter.
Noninterest-bearing deposits continued to be impacted by the higher
interest rate environment, as we saw a continuation of the
declining trend in noninterest-bearing deposit balances that began
in the fourth quarter of 2022, although at a slower pace than prior
periods.
- At December 31, 2023, noninterest-bearing deposits as a
percentage of total deposits were 23.3%, compared to 24.0% and
31.9% at September 30, 2023, and December 31, 2022,
respectively.
- Uninsured/uncollateralized deposits
totaled $2.73 billion at December 31, 2023, compared to $2.75
billion at September 30, 2023, representing 33.1% and 32.8% of
total deposits at December 31, 2023, and September 30, 2023,
respectively.
Borrowings
- FHLB advances and other borrowings at December 31, 2023, were
$83.6 million, an increase of $71.4 million compared to
the linked quarter and represented a decrease of
$555.6 million from December 31, 2022.
Stockholders’ Equity
- Stockholders’ equity was $1.06 billion at December 31, 2023, an
increase of $64.0 million, or 6.4%, compared to $998.9 million at
September 30, 2023, and an increase of $113.0 million, or 11.9%,
compared to December 31, 2022.
- The increase in stockholders’ equity from the linked quarter is
primarily due to a decrease in accumulated other comprehensive
loss, net of tax, of $51.7 million and net income of $13.4
million, partially offset by dividends declared of
$4.7 million during the current quarter.
Conference Call
Origin will hold a conference call to discuss its fourth quarter
and 2023 full year results on Thursday, January 25, 2024, 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: 48784
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/ORIGINQ423.
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 has over 60 locations from
Dallas/Fort Worth, East Texas and Houston, across North Louisiana
and into 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, adjusted NIM-FTE, 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
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; potential reductions in benchmark interest rates and the
resulting impacts on net interest income; 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; a potential U.S. federal government
shutdown and the resulting impacts; 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; 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 or the conflict in Israel and surrounding areas,
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; fraud or misconduct by internal or
external actors, 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 |
|
December 31, 2023 |
|
September 30, 2023 |
|
June 30, 2023 |
|
March 31, 2023 |
|
December 31,2022 |
|
|
|
|
|
|
|
|
|
|
Income statement and
share amounts |
(Dollars in thousands, except per share amounts) |
Net interest income |
$ |
72,989 |
|
|
$ |
74,130 |
|
|
$ |
75,291 |
|
|
$ |
77,147 |
|
|
$ |
84,749 |
|
Provision for credit
losses |
|
2,735 |
|
|
|
3,515 |
|
|
|
4,306 |
|
|
|
6,197 |
|
|
|
4,624 |
|
Noninterest income |
|
8,196 |
|
|
|
18,119 |
|
|
|
15,636 |
|
|
|
16,384 |
|
|
|
13,429 |
|
Noninterest expense |
|
60,906 |
|
|
|
58,663 |
|
|
|
58,887 |
|
|
|
56,760 |
|
|
|
57,254 |
|
Income before income tax
expense |
|
17,544 |
|
|
|
30,071 |
|
|
|
27,734 |
|
|
|
30,574 |
|
|
|
36,300 |
|
Income tax expense |
|
4,119 |
|
|
|
5,758 |
|
|
|
5,974 |
|
|
|
6,272 |
|
|
|
6,822 |
|
Net income |
$ |
13,425 |
|
|
$ |
24,313 |
|
|
$ |
21,760 |
|
|
$ |
24,302 |
|
|
$ |
29,478 |
|
Adjusted net income(1) |
$ |
18,461 |
|
|
$ |
22,004 |
|
|
$ |
21,388 |
|
|
$ |
24,188 |
|
|
$ |
30,409 |
|
Adjusted PTPP earnings(1) |
|
26,654 |
|
|
|
30,663 |
|
|
|
31,569 |
|
|
|
36,627 |
|
|
|
42,103 |
|
Basic earnings per common
share |
|
0.43 |
|
|
|
0.79 |
|
|
|
0.71 |
|
|
|
0.79 |
|
|
|
0.96 |
|
Diluted earnings per common
share |
|
0.43 |
|
|
|
0.79 |
|
|
|
0.70 |
|
|
|
0.79 |
|
|
|
0.95 |
|
Adjusted diluted earnings per
common share(1) |
|
0.60 |
|
|
|
0.71 |
|
|
|
0.69 |
|
|
|
0.78 |
|
|
|
0.99 |
|
Dividends declared per common
share |
|
0.15 |
|
|
|
0.15 |
|
|
|
0.15 |
|
|
|
0.15 |
|
|
|
0.15 |
|
Weighted average common shares
outstanding - basic |
|
30,898,941 |
|
|
|
30,856,649 |
|
|
|
30,791,397 |
|
|
|
30,742,902 |
|
|
|
30,674,389 |
|
Weighted average common shares
outstanding - diluted |
|
30,995,354 |
|
|
|
30,943,860 |
|
|
|
30,872,834 |
|
|
|
30,882,156 |
|
|
|
30,867,511 |
|
|
|
|
|
|
|
|
|
|
|
Balance sheet
data |
|
|
|
|
|
|
|
|
|
Total LHFI |
$ |
7,660,944 |
|
|
$ |
7,568,063 |
|
|
$ |
7,622,689 |
|
|
$ |
7,375,823 |
|
|
$ |
7,090,022 |
|
Total assets |
|
9,722,584 |
|
|
|
9,733,303 |
|
|
|
10,165,163 |
|
|
|
10,358,516 |
|
|
|
9,686,067 |
|
Total deposits |
|
8,251,125 |
|
|
|
8,374,488 |
|
|
|
8,490,043 |
|
|
|
8,174,310 |
|
|
|
7,775,702 |
|
Total stockholders’
equity |
|
1,062,905 |
|
|
|
998,945 |
|
|
|
997,859 |
|
|
|
992,587 |
|
|
|
949,943 |
|
|
|
|
|
|
|
|
|
|
|
Performance metrics
and capital ratios |
|
|
|
|
|
|
|
|
|
Yield on LHFI |
|
6.46 |
% |
|
|
6.35 |
% |
|
|
6.18 |
% |
|
|
6.03 |
% |
|
|
5.63 |
% |
Yield on interest-earnings
assets |
|
5.86 |
|
|
|
5.69 |
|
|
|
5.50 |
|
|
|
5.31 |
|
|
|
4.96 |
|
Cost of interest-bearing
deposits |
|
3.71 |
|
|
|
3.47 |
|
|
|
3.05 |
|
|
|
2.49 |
|
|
|
1.54 |
|
Cost of total deposits |
|
2.84 |
|
|
|
2.61 |
|
|
|
2.26 |
|
|
|
1.75 |
|
|
|
1.02 |
|
NIM - fully tax equivalent
("FTE") |
|
3.19 |
|
|
|
3.14 |
|
|
|
3.16 |
|
|
|
3.44 |
|
|
|
3.81 |
|
Adjusted NIM-FTE(2) |
|
3.19 |
|
|
|
3.14 |
|
|
|
3.14 |
|
|
|
3.36 |
|
|
|
3.73 |
|
Return on average assets
(annualized) ("ROAA") |
|
0.55 |
|
|
|
0.96 |
|
|
|
0.86 |
|
|
|
1.01 |
|
|
|
1.23 |
|
Adjusted ROAA
(annualized)(1) |
|
0.75 |
|
|
|
0.87 |
|
|
|
0.84 |
|
|
|
1.00 |
|
|
|
1.27 |
|
Adjusted PTPP ROAA
(annualized)(1) |
|
1.08 |
|
|
|
1.21 |
|
|
|
1.24 |
|
|
|
1.52 |
|
|
|
1.75 |
|
Return on average
stockholders’ equity (annualized) ("ROAE") |
|
5.26 |
|
|
|
9.52 |
|
|
|
8.76 |
|
|
|
10.10 |
|
|
|
12.80 |
|
Adjusted ROAE
(annualized)(1) |
|
7.23 |
|
|
|
8.62 |
|
|
|
8.61 |
|
|
|
10.05 |
|
|
|
13.20 |
|
Adjusted PTPP ROAE
(annualized)(1) |
|
10.44 |
|
|
|
12.01 |
|
|
|
12.70 |
|
|
|
15.22 |
|
|
|
18.28 |
|
Book value per common
share(3) |
$ |
34.30 |
|
|
$ |
32.32 |
|
|
$ |
32.33 |
|
|
$ |
32.25 |
|
|
$ |
30.90 |
|
Tangible book value per common
share(1)(3) |
|
28.68 |
|
|
|
26.78 |
|
|
|
26.71 |
|
|
|
26.53 |
|
|
|
25.09 |
|
Adjusted tangible book value
per common share(1) |
|
32.59 |
|
|
|
32.37 |
|
|
|
31.66 |
|
|
|
31.03 |
|
|
|
30.29 |
|
Return on average tangible
common equity (annualized) ("ROATCE")(1) |
|
6.36 |
% |
|
|
11.48 |
% |
|
|
10.62 |
% |
|
|
12.34 |
% |
|
|
16.00 |
% |
Adjusted return on average
tangible common equity (annualized) ("adjusted ROATCE")(1) |
|
8.74 |
|
|
|
10.39 |
|
|
|
10.44 |
|
|
|
12.29 |
|
|
|
16.50 |
|
Efficiency ratio(4) |
|
75.02 |
|
|
|
63.59 |
|
|
|
64.76 |
|
|
|
60.69 |
|
|
|
58.32 |
|
Adjusted efficiency
ratio(1) |
|
66.43 |
|
|
|
62.71 |
|
|
|
61.17 |
|
|
|
58.64 |
|
|
|
53.06 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common equity tier 1 to
risk-weighted assets(5) |
|
11.83 |
% |
|
|
11.46 |
% |
|
|
11.01 |
% |
|
|
11.08 |
% |
|
|
10.93 |
% |
Tier 1 capital to
risk-weighted assets(5) |
|
12.01 |
|
|
|
11.64 |
|
|
|
11.19 |
|
|
|
11.27 |
|
|
|
11.12 |
|
Total capital to risk-weighted
assets(5) |
|
15.02 |
|
|
|
14.61 |
|
|
|
14.11 |
|
|
|
14.30 |
|
|
|
14.23 |
|
Tier 1 leverage ratio(5) |
|
10.50 |
|
|
|
10.00 |
|
|
|
9.65 |
|
|
|
9.79 |
|
|
|
9.66 |
|
__________________________
(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) Adjusted NIM-FTE is a non-GAAP
financial measure and is calculated by removing the $48,000,
$38,000 net purchase accounting amortization for the quarters ended
December 31, 2023 and September 30, 2023, respectively, and the
$530,000, $1.7 million, and $1.9 million net purchase
accounting accretion from the net interest income for the quarters
ended June 30, 2023, March 31, 2023 and December 31, 2022,
respectively. (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) December 31, 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 Annual Financial Data |
(Unaudited) |
|
|
Years Ended December 31, |
(Dollars in thousands, except per share amounts) |
|
2023 |
|
|
|
2022 |
|
|
|
|
|
Income statement and
share amounts |
|
Net interest income |
$ |
299,557 |
|
|
$ |
275,278 |
|
Provision for credit
losses |
|
16,753 |
|
|
|
24,691 |
|
Noninterest income |
|
58,335 |
|
|
|
57,274 |
|
Noninterest expense |
|
235,216 |
|
|
|
200,419 |
|
Income before income tax expense |
|
105,923 |
|
|
|
107,442 |
|
Income tax expense |
|
22,123 |
|
|
|
19,727 |
|
Net income |
$ |
83,800 |
|
|
$ |
87,715 |
|
Adjusted net income(1) |
$ |
81,603 |
|
|
$ |
104,579 |
|
Adjusted PTPP earnings(1) |
|
125,513 |
|
|
|
138,590 |
|
Basic earnings per common share |
|
2.72 |
|
|
|
3.29 |
|
Diluted earnings per common share |
|
2.71 |
|
|
|
3.28 |
|
Adjusted diluted earnings per
common share(1) |
|
2.64 |
|
|
|
3.91 |
|
Dividends declared per common
share |
|
0.60 |
|
|
|
0.58 |
|
Weighted average common shares outstanding - basic |
|
30,822,993 |
|
|
|
26,627,476 |
|
Weighted average common shares outstanding - diluted |
|
30,931,605 |
|
|
|
26,760,592 |
|
|
|
|
|
Performance
metrics |
|
|
|
Yield on LHFI |
|
6.26 |
% |
|
|
4.81 |
% |
Yield on interest-earning
assets |
|
5.59 |
|
|
|
4.02 |
|
Cost of interest-bearing
deposits |
|
3.21 |
|
|
|
0.72 |
|
Cost of total deposits |
|
2.38 |
|
|
|
0.47 |
|
NIM, FTE |
|
3.23 |
|
|
|
3.42 |
|
Adjusted NIM-FTE(2) |
|
3.21 |
|
|
|
3.38 |
|
ROAA |
|
0.84 |
|
|
|
1.01 |
|
Adjusted ROAA(1) |
|
0.82 |
|
|
|
1.20 |
|
Adjusted PTPP ROAA(1) |
|
1.26 |
|
|
|
1.60 |
|
ROAE |
|
8.38 |
|
|
|
10.81 |
|
Adjusted ROAE(1) |
|
8.16 |
|
|
|
12.89 |
|
Adjusted PTPP ROAE(1) |
|
12.55 |
|
|
|
17.08 |
|
ROATCE(1) |
|
10.16 |
|
|
|
12.43 |
|
Adjusted ROATCE(1) |
|
9.89 |
|
|
|
14.82 |
|
Efficiency ratio(3) |
|
65.72 |
|
|
|
60.27 |
|
Adjusted efficiency
ratio(1) |
|
62.18 |
|
|
|
54.16 |
|
____________________________(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) Adjusted NIM-FTE is a non-GAAP
financial measure and is calculated by removing the
$2.1 million and $3.3 million million net purchase
accounting accretion from the net interest income for the years
ended December 31, 2023 and December 31, 2022,
respectively.(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 |
|
December 31, 2023 |
|
September 30, 2023 |
|
June 30, 2023 |
|
March 31, 2023 |
|
December 31,2022 |
|
|
|
|
|
|
|
|
|
|
Interest and dividend
income |
(Dollars in thousands, except per share amounts) |
Interest and fees on loans |
$ |
123,673 |
|
|
$ |
121,204 |
|
|
$ |
115,442 |
|
|
$ |
106,496 |
|
$ |
99,178 |
|
Investment securities-taxable |
|
7,024 |
|
|
|
8,194 |
|
|
|
8,303 |
|
|
|
8,161 |
|
|
7,765 |
|
Investment securities-nontaxable |
|
1,124 |
|
|
|
1,281 |
|
|
|
1,283 |
|
|
|
1,410 |
|
|
2,128 |
|
Interest and dividend income on assets held in other financial
institutions |
|
3,664 |
|
|
|
4,772 |
|
|
|
7,286 |
|
|
|
4,074 |
|
|
2,225 |
|
Total interest and dividend income |
|
135,485 |
|
|
|
135,451 |
|
|
|
132,314 |
|
|
|
120,141 |
|
|
111,296 |
|
Interest
expense |
|
|
|
|
|
|
|
|
|
Interest-bearing deposits |
|
59,771 |
|
|
|
55,599 |
|
|
|
46,530 |
|
|
|
34,557 |
|
|
19,820 |
|
FHLB advances and other borrowings |
|
220 |
|
|
|
3,207 |
|
|
|
7,951 |
|
|
|
5,880 |
|
|
4,208 |
|
Subordinated indebtedness |
|
2,505 |
|
|
|
2,515 |
|
|
|
2,542 |
|
|
|
2,557 |
|
|
2,519 |
|
Total interest expense |
|
62,496 |
|
|
|
61,321 |
|
|
|
57,023 |
|
|
|
42,994 |
|
|
26,547 |
|
Net interest income |
|
72,989 |
|
|
|
74,130 |
|
|
|
75,291 |
|
|
|
77,147 |
|
|
84,749 |
|
Provision for credit losses |
|
2,735 |
|
|
|
3,515 |
|
|
|
4,306 |
|
|
|
6,197 |
|
|
4,624 |
|
Net interest income after provision for credit
losses |
|
70,254 |
|
|
|
70,615 |
|
|
|
70,985 |
|
|
|
70,950 |
|
|
80,125 |
|
Noninterest
income |
|
|
|
|
|
|
|
|
|
Insurance commission and fee income |
|
5,446 |
|
|
|
6,443 |
|
|
|
6,185 |
|
|
|
7,011 |
|
|
5,054 |
|
Service charges and fees |
|
4,889 |
|
|
|
4,621 |
|
|
|
4,722 |
|
|
|
4,571 |
|
|
4,663 |
|
Mortgage banking revenue (loss) |
|
(719 |
) |
|
|
892 |
|
|
|
1,402 |
|
|
|
1,781 |
|
|
1,201 |
|
Other fee income |
|
1,015 |
|
|
|
944 |
|
|
|
970 |
|
|
|
942 |
|
|
1,132 |
|
Swap fee income |
|
196 |
|
|
|
366 |
|
|
|
331 |
|
|
|
384 |
|
|
292 |
|
(Loss) gain on sales of securities, net |
|
(4,606 |
) |
|
|
(7,173 |
) |
|
|
— |
|
|
|
144 |
|
|
— |
|
Limited partnership investment (loss) income |
|
533 |
|
|
|
(425 |
) |
|
|
231 |
|
|
|
66 |
|
|
(230 |
) |
Gain (loss) on sales and disposals of other assets, net |
|
67 |
|
|
|
45 |
|
|
|
(111 |
) |
|
|
63 |
|
|
34 |
|
Other income |
|
1,375 |
|
|
|
12,406 |
|
|
|
1,906 |
|
|
|
1,422 |
|
|
1,283 |
|
Total noninterest income |
|
8,196 |
|
|
|
18,119 |
|
|
|
15,636 |
|
|
|
16,384 |
|
|
13,429 |
|
Noninterest
expense |
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
|
35,931 |
|
|
|
34,624 |
|
|
|
34,533 |
|
|
|
33,731 |
|
|
33,339 |
|
Occupancy and equipment, net |
|
6,912 |
|
|
|
6,790 |
|
|
|
6,578 |
|
|
|
6,503 |
|
|
5,863 |
|
Data processing |
|
3,062 |
|
|
|
2,775 |
|
|
|
2,837 |
|
|
|
2,916 |
|
|
2,868 |
|
Intangible asset amortization |
|
2,259 |
|
|
|
2,264 |
|
|
|
2,552 |
|
|
|
2,553 |
|
|
2,554 |
|
Office and operations |
|
2,947 |
|
|
|
2,868 |
|
|
|
2,716 |
|
|
|
2,303 |
|
|
2,277 |
|
Professional services |
|
1,440 |
|
|
|
1,409 |
|
|
|
1,557 |
|
|
|
1,525 |
|
|
1,145 |
|
Loan-related expenses |
|
1,094 |
|
|
|
1,220 |
|
|
|
1,256 |
|
|
|
1,465 |
|
|
1,676 |
|
Advertising and marketing |
|
1,690 |
|
|
|
1,371 |
|
|
|
1,469 |
|
|
|
1,456 |
|
|
1,505 |
|
Electronic banking |
|
1,103 |
|
|
|
1,384 |
|
|
|
1,216 |
|
|
|
1,009 |
|
|
1,058 |
|
Franchise tax expense |
|
942 |
|
|
|
520 |
|
|
|
897 |
|
|
|
975 |
|
|
1,017 |
|
Regulatory assessments |
|
1,860 |
|
|
|
1,913 |
|
|
|
1,732 |
|
|
|
951 |
|
|
1,242 |
|
Communications |
|
346 |
|
|
|
390 |
|
|
|
407 |
|
|
|
384 |
|
|
434 |
|
Merger-related expense |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
1,179 |
|
Other expenses |
|
1,320 |
|
|
|
1,135 |
|
|
|
1,137 |
|
|
|
989 |
|
|
1,097 |
|
Total noninterest expense |
|
60,906 |
|
|
|
58,663 |
|
|
|
58,887 |
|
|
|
56,760 |
|
|
57,254 |
|
Income before income
tax expense |
|
17,544 |
|
|
|
30,071 |
|
|
|
27,734 |
|
|
|
30,574 |
|
|
36,300 |
|
Income tax expense |
|
4,119 |
|
|
|
5,758 |
|
|
|
5,974 |
|
|
|
6,272 |
|
|
6,822 |
|
Net
income |
$ |
13,425 |
|
|
$ |
24,313 |
|
|
$ |
21,760 |
|
|
$ |
24,302 |
|
$ |
29,478 |
|
Basic earnings per common
share |
$ |
0.43 |
|
|
$ |
0.79 |
|
|
$ |
0.71 |
|
|
$ |
0.79 |
|
$ |
0.96 |
|
Diluted earnings per common
share |
|
0.43 |
|
|
|
0.79 |
|
|
|
0.70 |
|
|
|
0.79 |
|
|
0.95 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Origin Bancorp, Inc. |
Consolidated Balance Sheets |
(Unaudited) |
|
(Dollars in thousands) |
December 31, 2023 |
|
September 30, 2023 |
|
June 30, 2023 |
|
March 31, 2023 |
|
December 31,2022 |
Assets |
|
|
|
|
|
|
|
|
|
Cash and due from banks |
$ |
127,278 |
|
|
$ |
141,705 |
|
|
$ |
127,576 |
|
|
$ |
117,309 |
|
|
$ |
150,180 |
|
Interest-bearing deposits in
banks |
|
153,163 |
|
|
|
163,573 |
|
|
|
338,414 |
|
|
|
707,802 |
|
|
|
208,792 |
|
Total cash and cash equivalents |
|
280,441 |
|
|
|
305,278 |
|
|
|
465,990 |
|
|
|
825,111 |
|
|
|
358,972 |
|
Securities: |
|
|
|
|
|
|
|
|
|
AFS |
|
1,253,631 |
|
|
|
1,290,839 |
|
|
|
1,535,702 |
|
|
|
1,591,334 |
|
|
|
1,641,484 |
|
Held to maturity, net of allowance for credit losses |
|
11,615 |
|
|
|
10,790 |
|
|
|
11,234 |
|
|
|
11,191 |
|
|
|
11,275 |
|
Securities carried at fair value through income |
|
6,808 |
|
|
|
6,772 |
|
|
|
6,106 |
|
|
|
6,413 |
|
|
|
6,368 |
|
Total securities |
|
1,272,054 |
|
|
|
1,308,401 |
|
|
|
1,553,042 |
|
|
|
1,608,938 |
|
|
|
1,659,127 |
|
Non-marketable equity
securities held in other financial institutions |
|
55,190 |
|
|
|
63,842 |
|
|
|
58,446 |
|
|
|
77,036 |
|
|
|
67,378 |
|
Loans held for sale |
|
16,852 |
|
|
|
14,944 |
|
|
|
15,198 |
|
|
|
29,143 |
|
|
|
49,957 |
|
Loans |
|
7,660,944 |
|
|
|
7,568,063 |
|
|
|
7,622,689 |
|
|
|
7,375,823 |
|
|
|
7,090,022 |
|
Less: ALCL |
|
96,868 |
|
|
|
95,177 |
|
|
|
94,353 |
|
|
|
92,008 |
|
|
|
87,161 |
|
Loans, net of ALCL |
|
7,564,076 |
|
|
|
7,472,886 |
|
|
|
7,528,336 |
|
|
|
7,283,815 |
|
|
|
7,002,861 |
|
Premises and equipment,
net |
|
118,978 |
|
|
|
111,700 |
|
|
|
105,501 |
|
|
|
104,047 |
|
|
|
100,201 |
|
Mortgage servicing rights |
|
15,637 |
|
|
|
19,189 |
|
|
|
19,086 |
|
|
|
18,261 |
|
|
|
20,824 |
|
Cash surrender value of
bank-owned life insurance |
|
39,905 |
|
|
|
39,688 |
|
|
|
39,467 |
|
|
|
39,253 |
|
|
|
39,040 |
|
Goodwill |
|
128,679 |
|
|
|
128,679 |
|
|
|
128,679 |
|
|
|
128,679 |
|
|
|
128,679 |
|
Other intangible assets,
net |
|
45,452 |
|
|
|
42,460 |
|
|
|
44,724 |
|
|
|
47,277 |
|
|
|
49,829 |
|
Accrued interest receivable
and other assets |
|
185,320 |
|
|
|
226,236 |
|
|
|
206,694 |
|
|
|
196,956 |
|
|
|
209,199 |
|
Total assets |
$ |
9,722,584 |
|
|
$ |
9,733,303 |
|
|
$ |
10,165,163 |
|
|
$ |
10,358,516 |
|
|
$ |
9,686,067 |
|
Liabilities and
Stockholders’ Equity |
|
|
|
|
|
|
|
|
|
Noninterest-bearing
deposits |
$ |
1,919,638 |
|
|
$ |
2,008,671 |
|
|
$ |
2,123,699 |
|
|
$ |
2,247,782 |
|
|
$ |
2,482,475 |
|
Interest-bearing deposits |
|
4,918,597 |
|
|
|
4,728,263 |
|
|
|
4,738,460 |
|
|
|
4,779,023 |
|
|
|
4,505,940 |
|
Time deposits |
|
967,901 |
|
|
|
968,352 |
|
|
|
949,975 |
|
|
|
857,537 |
|
|
|
781,880 |
|
Brokered time deposits |
|
444,989 |
|
|
|
669,202 |
|
|
|
677,909 |
|
|
|
289,968 |
|
|
|
5,407 |
|
Total deposits |
|
8,251,125 |
|
|
|
8,374,488 |
|
|
|
8,490,043 |
|
|
|
8,174,310 |
|
|
|
7,775,702 |
|
FHLB advances and other
borrowings |
|
83,598 |
|
|
|
12,213 |
|
|
|
342,861 |
|
|
|
875,502 |
|
|
|
639,230 |
|
Subordinated indebtedness |
|
194,279 |
|
|
|
196,825 |
|
|
|
196,746 |
|
|
|
201,845 |
|
|
|
201,765 |
|
Accrued expenses and other
liabilities |
|
130,677 |
|
|
|
150,832 |
|
|
|
137,654 |
|
|
|
114,272 |
|
|
|
119,427 |
|
Total liabilities |
|
8,659,679 |
|
|
|
8,734,358 |
|
|
|
9,167,304 |
|
|
|
9,365,929 |
|
|
|
8,736,124 |
|
Stockholders’ equity: |
|
|
|
|
|
|
|
|
|
Common stock |
|
154,931 |
|
|
|
154,534 |
|
|
|
154,331 |
|
|
|
153,904 |
|
|
|
153,733 |
|
Additional paid-in
capital |
|
528,578 |
|
|
|
525,434 |
|
|
|
524,302 |
|
|
|
522,124 |
|
|
|
520,669 |
|
Retained earnings |
|
500,419 |
|
|
|
491,706 |
|
|
|
472,105 |
|
|
|
455,040 |
|
|
|
435,416 |
|
Accumulated other
comprehensive loss |
|
(121,023 |
) |
|
|
(172,729 |
) |
|
|
(152,879 |
) |
|
|
(138,481 |
) |
|
|
(159,875 |
) |
Total stockholders’ equity |
|
1,062,905 |
|
|
|
998,945 |
|
|
|
997,859 |
|
|
|
992,587 |
|
|
|
949,943 |
|
Total liabilities and stockholders’ equity |
$ |
9,722,584 |
|
|
$ |
9,733,303 |
|
|
$ |
10,165,163 |
|
|
$ |
10,358,516 |
|
|
$ |
9,686,067 |
|
Origin Bancorp, Inc. |
Loan Data |
(Unaudited) |
|
|
At and For the Three Months Ended |
|
December 31, 2023 |
|
September 30, 2023 |
|
June 30, 2023 |
|
March 31, 2023 |
|
December 31,2022 |
|
|
|
|
|
|
|
|
|
|
LHFI |
(Dollars in thousands) |
Owner occupied commercial real estate |
$ |
953,822 |
|
|
$ |
932,109 |
|
|
$ |
915,861 |
|
|
$ |
855,887 |
|
|
$ |
843,006 |
|
Non-owner occupied commercial
real estate |
|
1,488,912 |
|
|
|
1,503,782 |
|
|
|
1,512,303 |
|
|
|
1,529,513 |
|
|
|
1,461,672 |
|
Owner occupied
construction/land/land development |
|
256,658 |
|
|
|
252,168 |
|
|
|
259,984 |
|
|
|
252,617 |
|
|
|
265,838 |
|
Non-owner occupied
construction/land/land development |
|
813,567 |
|
|
|
824,588 |
|
|
|
762,255 |
|
|
|
696,009 |
|
|
|
679,787 |
|
Residential real estate -
single family |
|
1,373,696 |
|
|
|
1,338,382 |
|
|
|
1,284,955 |
|
|
|
1,231,022 |
|
|
|
1,173,316 |
|
Residential real estate -
multi-family |
|
361,239 |
|
|
|
349,787 |
|
|
|
348,703 |
|
|
|
357,469 |
|
|
|
304,222 |
|
Total real estate loans |
|
5,247,894 |
|
|
|
5,200,816 |
|
|
|
5,084,061 |
|
|
|
4,922,517 |
|
|
|
4,727,841 |
|
Commercial and industrial |
|
2,059,460 |
|
|
|
2,058,073 |
|
|
|
1,977,028 |
|
|
|
2,091,093 |
|
|
|
2,051,161 |
|
MW LOC |
|
329,966 |
|
|
|
286,293 |
|
|
|
537,627 |
|
|
|
337,529 |
|
|
|
284,867 |
|
Consumer |
|
23,624 |
|
|
|
22,881 |
|
|
|
23,973 |
|
|
|
24,684 |
|
|
|
26,153 |
|
Total LHFI |
|
7,660,944 |
|
|
|
7,568,063 |
|
|
|
7,622,689 |
|
|
|
7,375,823 |
|
|
|
7,090,022 |
|
Less: ALCL |
|
96,868 |
|
|
|
95,177 |
|
|
|
94,353 |
|
|
|
92,008 |
|
|
|
87,161 |
|
LHFI, net |
$ |
7,564,076 |
|
|
$ |
7,472,886 |
|
|
$ |
7,528,336 |
|
|
$ |
7,283,815 |
|
|
$ |
7,002,861 |
|
|
|
|
|
|
|
|
|
|
|
Nonperforming
assets |
|
|
|
|
|
|
|
|
|
Nonperforming LHFI |
|
|
|
|
|
|
|
|
|
Commercial real estate |
$ |
786 |
|
|
$ |
942 |
|
|
$ |
3,510 |
|
|
$ |
3,100 |
|
|
$ |
526 |
|
Construction/land/land development |
|
305 |
|
|
|
235 |
|
|
|
183 |
|
|
|
226 |
|
|
|
270 |
|
Residential real estate |
|
13,037 |
|
|
|
13,236 |
|
|
|
16,345 |
|
|
|
8,969 |
|
|
|
7,712 |
|
Commercial and industrial |
|
15,897 |
|
|
|
17,072 |
|
|
|
13,480 |
|
|
|
4,730 |
|
|
|
1,383 |
|
MW LOC |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Consumer |
|
90 |
|
|
|
123 |
|
|
|
91 |
|
|
|
53 |
|
|
|
49 |
|
Total nonperforming LHFI |
|
30,115 |
|
|
|
31,608 |
|
|
|
33,609 |
|
|
|
17,078 |
|
|
|
9,940 |
|
Nonperforming loans held for
sale |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
4,646 |
|
|
|
3,933 |
|
Total nonperforming loans |
|
30,115 |
|
|
|
31,608 |
|
|
|
33,609 |
|
|
|
21,724 |
|
|
|
13,873 |
|
Repossessed assets |
|
3,929 |
|
|
|
3,939 |
|
|
|
908 |
|
|
|
806 |
|
|
|
806 |
|
Total nonperforming assets |
$ |
34,044 |
|
|
$ |
35,547 |
|
|
$ |
34,517 |
|
|
$ |
22,530 |
|
|
$ |
14,679 |
|
Classified assets |
$ |
84,474 |
|
|
$ |
67,960 |
|
|
$ |
85,206 |
|
|
$ |
86,975 |
|
|
$ |
75,009 |
|
Past due LHFI(1) |
|
26,043 |
|
|
|
20,347 |
|
|
|
19,836 |
|
|
|
11,498 |
|
|
|
10,932 |
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan
credit losses |
|
|
|
|
|
|
|
|
|
Balance at beginning of
period |
$ |
95,177 |
|
|
$ |
94,353 |
|
|
$ |
92,008 |
|
|
$ |
87,161 |
|
|
$ |
83,359 |
|
Provision for loan credit losses |
|
3,582 |
|
|
|
3,510 |
|
|
|
4,264 |
|
|
|
6,158 |
|
|
|
3,982 |
|
Loans charged off |
|
3,803 |
|
|
|
3,202 |
|
|
|
2,751 |
|
|
|
2,293 |
|
|
|
2,537 |
|
Loan recoveries |
|
1,912 |
|
|
|
516 |
|
|
|
832 |
|
|
|
982 |
|
|
|
2,357 |
|
Net charge-offs |
|
1,891 |
|
|
|
2,686 |
|
|
|
1,919 |
|
|
|
1,311 |
|
|
|
180 |
|
Balance at end of period |
$ |
96,868 |
|
|
$ |
95,177 |
|
|
$ |
94,353 |
|
|
$ |
92,008 |
|
|
$ |
87,161 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Credit quality
ratios |
|
Total nonperforming assets to
total assets |
|
0.35 |
% |
|
|
0.37 |
% |
|
|
0.34 |
% |
|
|
0.22 |
% |
|
|
0.15 |
% |
Total nonperforming loans to
total loans |
|
0.39 |
|
|
|
0.42 |
|
|
|
0.44 |
|
|
|
0.29 |
|
|
|
0.19 |
|
Nonperforming LHFI to
LHFI |
|
0.39 |
|
|
|
0.42 |
|
|
|
0.44 |
|
|
|
0.23 |
|
|
|
0.14 |
|
Past due LHFI to LHFI |
|
0.34 |
|
|
|
0.27 |
|
|
|
0.26 |
|
|
|
0.16 |
|
|
|
0.15 |
|
ALCL to nonperforming
LHFI |
|
321.66 |
|
|
|
301.12 |
|
|
|
280.74 |
|
|
|
538.75 |
|
|
|
876.87 |
|
ALCL to total LHFI |
|
1.26 |
|
|
|
1.26 |
|
|
|
1.24 |
|
|
|
1.25 |
|
|
|
1.23 |
|
ALCL to total LHFI,
adjusted(2) |
|
1.31 |
|
|
|
1.30 |
|
|
|
1.32 |
|
|
|
1.30 |
|
|
|
1.28 |
|
Net charge-offs to total
average LHFI (annualized) |
|
0.10 |
|
|
|
0.14 |
|
|
|
0.10 |
|
|
|
0.07 |
|
|
|
0.01 |
|
____________________________(1) Past due LHFI are defined
as loans 30 days or more past due.(2) The ALCL to total LHFI,
adjusted is calculated by excluding the ALCL for MW LOC loans from
the total LHFI ALCL in the numerator and excluding the MW LOC loans
from the LHFI in the denominator. Due to their low-risk profile, MW
LOC loans require a disproportionately low allocation of the
ALCL.
Origin Bancorp, Inc. |
Average Balances and Yields/Rates |
(Unaudited) |
|
|
Three Months Ended |
|
December 31, 2023 |
|
September 30, 2023 |
|
December 31, 2022 |
|
Average Balance |
|
Yield/Rate |
|
Average Balance |
|
Yield/Rate |
|
Average Balance |
|
Yield/Rate |
|
|
|
|
|
|
|
|
|
|
|
|
Assets |
(Dollars in thousands) |
Commercial real estate |
$ |
2,438,653 |
|
5.79 |
% |
|
$ |
2,428,969 |
|
5.73 |
% |
|
$ |
2,205,219 |
|
5.07 |
% |
Construction/land/land development |
|
1,068,243 |
|
7.16 |
|
|
|
1,044,180 |
|
7.04 |
|
|
|
916,697 |
|
6.01 |
|
Residential real estate |
|
1,717,976 |
|
5.27 |
|
|
|
1,663,291 |
|
5.06 |
|
|
|
1,442,281 |
|
4.57 |
|
Commercial and industrial ("C&I") |
|
2,062,418 |
|
7.71 |
|
|
|
2,024,675 |
|
7.62 |
|
|
|
2,053,473 |
|
6.74 |
|
MW LOC |
|
269,195 |
|
7.68 |
|
|
|
376,275 |
|
7.21 |
|
|
|
322,658 |
|
5.75 |
|
Consumer |
|
24,008 |
|
8.04 |
|
|
|
23,704 |
|
7.74 |
|
|
|
26,924 |
|
8.18 |
|
LHFI |
|
7,580,493 |
|
6.46 |
|
|
|
7,561,094 |
|
6.35 |
|
|
|
6,967,252 |
|
5.63 |
|
Loans held for sale |
|
11,971 |
|
5.80 |
|
|
|
11,829 |
|
5.81 |
|
|
|
28,842 |
|
5.39 |
|
Loans receivable |
|
7,592,464 |
|
6.46 |
|
|
|
7,572,923 |
|
6.35 |
|
|
|
6,996,094 |
|
5.62 |
|
Investment securities-taxable |
|
1,108,802 |
|
2.51 |
|
|
|
1,310,459 |
|
2.48 |
|
|
|
1,421,839 |
|
2.17 |
|
Investment securities-nontaxable |
|
182,324 |
|
2.45 |
|
|
|
216,700 |
|
2.35 |
|
|
|
253,073 |
|
3.34 |
|
Non-marketable equity securities held in other financial
institutions |
|
63,360 |
|
3.98 |
|
|
|
58,421 |
|
6.47 |
|
|
|
63,321 |
|
3.68 |
|
Interest-bearing balances due from banks |
|
218,833 |
|
5.49 |
|
|
|
279,383 |
|
5.42 |
|
|
|
175,138 |
|
3.71 |
|
Total interest-earning assets |
|
9,165,783 |
|
5.86 |
|
|
|
9,437,886 |
|
5.69 |
|
|
|
8,909,465 |
|
4.96 |
|
Noninterest-earning
assets(1) |
|
588,064 |
|
|
|
|
597,678 |
|
|
|
|
621,078 |
|
|
Total assets |
$ |
9,753,847 |
|
|
|
$ |
10,035,564 |
|
|
|
$ |
9,530,543 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders’ Equity |
|
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities |
|
|
|
|
|
|
|
|
|
|
|
Savings and interest-bearing transaction accounts |
$ |
4,784,623 |
|
3.54 |
% |
|
$ |
4,728,211 |
|
3.28 |
% |
|
$ |
4,362,915 |
|
1.59 |
% |
Time deposits |
|
1,603,049 |
|
4.24 |
|
|
|
1,626,935 |
|
4.04 |
|
|
|
753,526 |
|
1.22 |
|
Total interest-bearing deposits |
|
6,387,672 |
|
3.71 |
|
|
|
6,355,146 |
|
3.47 |
|
|
|
5,116,441 |
|
1.54 |
|
FHLB advances and other borrowings |
|
22,573 |
|
3.86 |
|
|
|
230,815 |
|
5.51 |
|
|
|
552,903 |
|
3.02 |
|
Subordinated indebtedness |
|
196,741 |
|
5.05 |
|
|
|
196,792 |
|
5.07 |
|
|
|
201,731 |
|
4.95 |
|
Total interest-bearing liabilities |
|
6,606,986 |
|
3.75 |
|
|
|
6,782,753 |
|
3.59 |
|
|
|
5,871,075 |
|
1.79 |
|
Noninterest-bearing
liabilities |
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing deposits |
|
1,972,995 |
|
|
|
|
2,088,183 |
|
|
|
|
2,593,321 |
|
|
Other liabilities(1) |
|
160,580 |
|
|
|
|
151,716 |
|
|
|
|
152,297 |
|
|
Total liabilities |
|
8,740,561 |
|
|
|
|
9,022,652 |
|
|
|
|
8,616,693 |
|
|
Stockholders’
Equity |
|
1,013,286 |
|
|
|
|
1,012,912 |
|
|
|
|
913,850 |
|
|
Total liabilities and stockholders’ equity |
$ |
9,753,847 |
|
|
|
$ |
10,035,564 |
|
|
|
$ |
9,530,543 |
|
|
Net interest spread |
|
|
2.11 |
% |
|
|
|
2.10 |
% |
|
|
|
3.17 |
% |
NIM |
|
|
3.16 |
|
|
|
|
3.12 |
|
|
|
|
3.77 |
|
NIM-FTE(2) |
|
|
3.19 |
|
|
|
|
3.14 |
|
|
|
|
3.81 |
|
Adjusted NIM-FTE(3) |
|
|
3.19 |
|
|
|
|
3.14 |
|
|
|
|
3.73 |
|
____________________________(1) Includes Government
National Mortgage Association (“GNMA”) repurchase average balances
of $25.9 million for the three months ended December 31, 2022.
There were no GNMA average repurchase balances at either December
31, 2023, or September 30, 2023. 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) Adjusted NIM-FTE is a non-GAAP
financial measure and is calculated by removing the $48,000 and
$38,000 net purchase accounting amortization from the net interest
income for the quarters ended December 31, 2023 and September 30,
2023, respectively, and the $1.9 million net purchase
accounting accretion from the net interest income for the quarter
ended December 31, 2022.
Origin Bancorp, Inc. |
Non-GAAP Financial Measures |
(Unaudited) |
|
|
At and For the Three Months Ended |
|
December 31, 2023 |
|
September 30, 2023 |
|
June 30, 2023 |
|
March 31, 2023 |
|
December 31,2022 |
|
|
|
|
|
|
|
|
|
|
|
(Dollars in thousands, except per share amounts) |
Calculation of
adjusted net income: |
|
|
|
|
|
|
|
|
|
Net interest income after provision for credit losses |
$ |
70,254 |
|
|
$ |
70,615 |
|
|
$ |
70,985 |
|
|
$ |
70,950 |
|
|
$ |
80,125 |
|
|
|
|
|
|
|
|
|
|
|
Total noninterest income |
$ |
8,196 |
|
|
$ |
18,119 |
|
|
$ |
15,636 |
|
|
$ |
16,384 |
|
|
$ |
13,429 |
|
Less: MSR impairment |
|
(1,769 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Less: (loss) gain on sales of securities, net |
|
(4,606 |
) |
|
|
(7,173 |
) |
|
|
— |
|
|
|
144 |
|
|
|
— |
|
Less: gain on sub-debt repurchase |
|
— |
|
|
|
— |
|
|
|
471 |
|
|
|
— |
|
|
|
— |
|
Less: positive valuation adjustment on non-marketable equity
securities |
|
— |
|
|
|
10,096 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Adjusted total noninterest
income |
|
14,571 |
|
|
|
15,196 |
|
|
|
15,165 |
|
|
|
16,240 |
|
|
|
13,429 |
|
|
|
|
|
|
|
|
|
|
|
Total noninterest expense |
$ |
60,906 |
|
|
$ |
58,663 |
|
|
$ |
58,887 |
|
|
$ |
56,760 |
|
|
$ |
57,254 |
|
Less: merger-related expenses |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,179 |
|
Adjusted total noninterest
expense |
|
60,906 |
|
|
|
58,663 |
|
|
|
58,887 |
|
|
|
56,760 |
|
|
|
56,075 |
|
|
|
|
|
|
|
|
|
|
|
Income tax expense |
$ |
4,119 |
|
|
$ |
5,758 |
|
|
$ |
5,974 |
|
|
$ |
6,272 |
|
|
$ |
6,822 |
|
Add: income tax expense on adjustment items |
|
1,339 |
|
|
|
(614 |
) |
|
|
(99 |
) |
|
|
(30 |
) |
|
|
248 |
|
Adjusted income tax
expense |
|
5,458 |
|
|
|
5,144 |
|
|
|
5,875 |
|
|
|
6,242 |
|
|
|
7,070 |
|
|
|
|
|
|
|
|
|
|
|
Net
income |
$ |
13,425 |
|
|
$ |
24,313 |
|
|
$ |
21,760 |
|
|
$ |
24,302 |
|
|
$ |
29,478 |
|
Adjusted net
income |
$ |
18,461 |
|
|
$ |
22,004 |
|
|
$ |
21,388 |
|
|
$ |
24,188 |
|
|
$ |
30,409 |
|
|
|
|
|
|
|
|
|
|
|
Calculation of
adjusted PTPP earnings: |
|
|
|
|
|
|
|
|
|
Provision for credit
losses |
$ |
2,735 |
|
|
$ |
3,515 |
|
|
$ |
4,306 |
|
|
$ |
6,197 |
|
|
$ |
4,624 |
|
|
|
|
|
|
|
|
|
|
|
Adjusted net
income |
$ |
18,461 |
|
|
$ |
22,004 |
|
|
$ |
21,388 |
|
|
$ |
24,188 |
|
|
$ |
30,409 |
|
Add: provision for credit losses |
|
2,735 |
|
|
|
3,515 |
|
|
|
4,306 |
|
|
|
6,197 |
|
|
|
4,624 |
|
Add: adjusted income tax expense |
|
5,458 |
|
|
|
5,144 |
|
|
|
5,875 |
|
|
|
6,242 |
|
|
|
7,070 |
|
Adjusted PTPP
Earnings |
$ |
26,654 |
|
|
$ |
30,663 |
|
|
$ |
31,569 |
|
|
$ |
36,627 |
|
|
$ |
42,103 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Calculation of
adjusted dilutive EPS: |
|
|
|
|
|
|
|
|
|
Numerator: |
|
|
|
|
|
|
|
|
|
Adjusted net income |
$ |
18,461 |
|
|
$ |
22,004 |
|
|
$ |
21,388 |
|
|
$ |
24,188 |
|
|
$ |
30,409 |
|
Denominator: |
|
|
|
|
|
|
|
|
|
Weighted average diluted common shares outstanding |
|
30,995,354 |
|
|
|
30,943,860 |
|
|
|
30,872,834 |
|
|
|
30,882,156 |
|
|
|
30,867,511 |
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share |
$ |
0.43 |
|
|
$ |
0.79 |
|
|
$ |
0.70 |
|
|
$ |
0.79 |
|
|
$ |
0.95 |
|
Adjusted diluted
earnings per share |
|
0.60 |
|
|
|
0.71 |
|
|
|
0.69 |
|
|
|
0.78 |
|
|
|
0.99 |
|
|
|
|
|
|
|
|
|
|
|
Calculation of adjusted ROAA and adjusted
ROAE: |
|
|
|
|
|
|
|
|
Adjusted net income |
$ |
18,461 |
|
|
$ |
22,004 |
|
|
$ |
21,388 |
|
|
$ |
24,188 |
|
|
$ |
30,409 |
|
Divided by number of days in the quarter |
|
92 |
|
|
|
92 |
|
|
|
91 |
|
|
|
90 |
|
|
|
92 |
|
Multiplied by number of days in the year |
|
365 |
|
|
|
365 |
|
|
|
365 |
|
|
|
365 |
|
|
|
365 |
|
Annualized adjusted net
income |
$ |
73,242 |
|
|
$ |
87,298 |
|
|
$ |
85,787 |
|
|
$ |
98,096 |
|
|
$ |
120,644 |
|
|
|
|
|
|
|
|
|
|
|
Divided by total average
assets |
|
9,753,847 |
|
|
|
10,035,564 |
|
|
|
10,190,356 |
|
|
|
9,783,602 |
|
|
|
9,530,543 |
|
ROAA
(annualized) |
|
0.55 |
% |
|
|
0.96 |
% |
|
|
0.86 |
% |
|
|
1.01 |
% |
|
|
1.23 |
% |
Adjusted ROAA
(annualized) |
|
0.75 |
|
|
|
0.87 |
|
|
|
0.84 |
|
|
|
1.00 |
|
|
|
1.27 |
|
|
|
|
|
|
|
|
|
|
|
Divided by total average
stockholders' equity |
$ |
1,013,286 |
|
|
$ |
1,012,912 |
|
|
$ |
996,823 |
|
|
$ |
976,044 |
|
|
$ |
913,850 |
|
ROAE
(annualized) |
|
5.26 |
% |
|
|
9.52 |
% |
|
|
8.76 |
% |
|
|
10.10 |
% |
|
|
12.80 |
% |
Adjusted ROAE
(annualized) |
|
7.23 |
|
|
|
8.62 |
|
|
|
8.61 |
|
|
|
10.05 |
|
|
|
13.20 |
|
|
|
|
|
|
|
|
|
|
|
Calculation of adjusted PTPP ROAA and adjusted PTPP
ROAE: |
|
|
|
|
|
|
Adjusted PTPP earnings |
$ |
26,654 |
|
|
$ |
30,663 |
|
|
$ |
31,569 |
|
|
$ |
36,627 |
|
|
$ |
42,103 |
|
Divided by number of days in the quarter |
|
92 |
|
|
|
92 |
|
|
|
91 |
|
|
|
90 |
|
|
|
92 |
|
Multiplied by the number of days in the year |
|
365 |
|
|
|
365 |
|
|
|
365 |
|
|
|
365 |
|
|
|
365 |
|
Adjusted PTPP earnings,
annualized |
$ |
105,747 |
|
|
$ |
121,652 |
|
|
$ |
126,623 |
|
|
$ |
148,543 |
|
|
$ |
167,039 |
|
|
|
|
|
|
|
|
|
|
|
Divided by total average
assets |
$ |
9,753,847 |
|
|
$ |
10,035,564 |
|
|
$ |
10,190,356 |
|
|
$ |
9,783,602 |
|
|
$ |
9,530,543 |
|
Adjusted PTPP
ROAA(annualized) |
|
1.08 |
% |
|
|
1.21 |
% |
|
|
1.24 |
% |
|
|
1.52 |
% |
|
|
1.75 |
% |
|
|
|
|
|
|
|
|
|
|
Divided by total average
stockholders' equity |
$ |
1,013,286 |
|
|
$ |
1,012,912 |
|
|
$ |
996,823 |
|
|
$ |
976,044 |
|
|
$ |
913,850 |
|
Adjusted PTPP ROAE
(annualized) |
|
10.44 |
% |
|
|
12.01 |
% |
|
|
12.70 |
% |
|
|
15.22 |
% |
|
|
18.28 |
% |
|
|
|
|
|
|
|
|
|
|
Calculation of tangible common equity to tangible common
assets, book value per common share and adjusted tangible book
value per common share: |
|
|
Total assets |
$ |
9,722,584 |
|
|
$ |
9,733,303 |
|
|
$ |
10,165,163 |
|
|
$ |
10,358,516 |
|
|
$ |
9,686,067 |
|
Less: goodwill |
|
128,679 |
|
|
|
128,679 |
|
|
|
128,679 |
|
|
|
128,679 |
|
|
|
128,679 |
|
Less: other intangible assets, net |
|
45,452 |
|
|
|
42,460 |
|
|
|
44,724 |
|
|
|
47,277 |
|
|
|
49,829 |
|
Tangible assets |
|
9,548,453 |
|
|
|
9,562,164 |
|
|
|
9,991,760 |
|
|
|
10,182,560 |
|
|
|
9,507,559 |
|
|
|
|
|
|
|
|
|
|
|
Total common stockholders’
equity |
$ |
1,062,905 |
|
|
$ |
998,945 |
|
|
$ |
997,859 |
|
|
$ |
992,587 |
|
|
$ |
949,943 |
|
Less: goodwill |
|
128,679 |
|
|
|
128,679 |
|
|
|
128,679 |
|
|
|
128,679 |
|
|
|
128,679 |
|
Less: other intangible assets, net |
|
45,452 |
|
|
|
42,460 |
|
|
|
44,724 |
|
|
|
47,277 |
|
|
|
49,829 |
|
Tangible common equity |
|
888,774 |
|
|
|
827,806 |
|
|
|
824,456 |
|
|
|
816,631 |
|
|
|
771,435 |
|
Less: accumulated other comprehensive loss |
|
(121,023 |
) |
|
|
(172,729 |
) |
|
|
(152,879 |
) |
|
|
(138,481 |
) |
|
|
(159,875 |
) |
Adjusted tangible common
equity |
|
1,009,797 |
|
|
|
1,000,535 |
|
|
|
977,335 |
|
|
|
955,112 |
|
|
|
931,310 |
|
Divided by common shares
outstanding at the end of the period |
|
30,986,109 |
|
|
|
30,906,716 |
|
|
|
30,866,205 |
|
|
|
30,780,853 |
|
|
|
30,746,600 |
|
Book value per common
share |
$ |
34.30 |
|
|
$ |
32.32 |
|
|
$ |
32.33 |
|
|
$ |
32.25 |
|
|
$ |
30.90 |
|
Tangible book value
per common share |
|
28.68 |
|
|
|
26.78 |
|
|
|
26.71 |
|
|
|
26.53 |
|
|
|
25.09 |
|
Adjusted tangible book
value per common share |
|
32.59 |
|
|
|
32.37 |
|
|
|
31.66 |
|
|
|
31.03 |
|
|
|
30.29 |
|
Tangible common equity
to tangible assets |
|
9.31 |
% |
|
|
8.66 |
% |
|
|
8.25 |
% |
|
|
8.02 |
% |
|
|
8.11 |
% |
|
|
|
|
|
|
|
|
|
|
Calculation of ROATCE and adjusted ROATCE: |
|
|
|
|
|
|
|
|
Net income |
$ |
13,425 |
|
|
$ |
24,313 |
|
|
$ |
21,760 |
|
|
$ |
24,302 |
|
|
$ |
29,478 |
|
Divided by number of days in the quarter |
|
92 |
|
|
|
92 |
|
|
|
91 |
|
|
|
90 |
|
|
|
92 |
|
Multiplied by number of days in the year |
|
365 |
|
|
|
365 |
|
|
|
365 |
|
|
|
365 |
|
|
|
365 |
|
Annualized net income |
$ |
53,262 |
|
|
$ |
96,459 |
|
|
$ |
87,279 |
|
|
$ |
98,558 |
|
|
$ |
116,951 |
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income |
$ |
18,461 |
|
|
$ |
22,004 |
|
|
$ |
21,388 |
|
|
$ |
24,188 |
|
|
$ |
30,409 |
|
Divided by number of days in the quarter |
|
92 |
|
|
|
92 |
|
|
|
91 |
|
|
|
90 |
|
|
|
92 |
|
Multiplied by number of days in the year |
|
365 |
|
|
|
365 |
|
|
|
365 |
|
|
|
365 |
|
|
|
365 |
|
Annualized adjusted net
income |
$ |
73,242 |
|
|
$ |
87,298 |
|
|
$ |
85,787 |
|
|
$ |
98,096 |
|
|
$ |
120,644 |
|
|
|
|
|
|
|
|
|
|
|
Total average common
stockholders’ equity |
$ |
1,013,286 |
|
|
$ |
1,012,912 |
|
|
$ |
996,823 |
|
|
$ |
976,044 |
|
|
$ |
913,850 |
|
Less: average goodwill |
|
128,679 |
|
|
|
128,679 |
|
|
|
128,679 |
|
|
|
128,679 |
|
|
|
131,302 |
|
Less: average other intangible assets, net |
|
46,825 |
|
|
|
43,901 |
|
|
|
46,379 |
|
|
|
48,950 |
|
|
|
51,495 |
|
Average tangible common
equity |
|
837,782 |
|
|
|
840,332 |
|
|
|
821,765 |
|
|
|
798,415 |
|
|
|
731,053 |
|
|
|
|
|
|
|
|
|
|
|
ROATCE |
|
6.36 |
% |
|
|
11.48 |
% |
|
|
10.62 |
% |
|
|
12.34 |
% |
|
|
16.00 |
% |
Adjusted
ROATCE |
|
8.74 |
|
|
|
10.39 |
|
|
|
10.44 |
|
|
|
12.29 |
|
|
|
16.50 |
|
|
|
|
|
|
|
|
|
|
|
Calculation of
adjusted efficiency ratio: |
|
|
|
|
|
|
|
|
|
Total noninterest expense |
$ |
60,906 |
|
|
$ |
58,663 |
|
|
$ |
58,887 |
|
|
$ |
56,760 |
|
|
$ |
57,254 |
|
Less: insurance and mortgage
noninterest expense |
|
8,581 |
|
|
|
8,579 |
|
|
|
9,156 |
|
|
|
8,033 |
|
|
|
8,031 |
|
Less: merger-related expenses |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,179 |
|
Adjusted total noninterest
expense |
|
52,325 |
|
|
|
50,084 |
|
|
|
49,731 |
|
|
|
48,727 |
|
|
|
48,044 |
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
$ |
72,989 |
|
|
$ |
74,130 |
|
|
$ |
75,291 |
|
|
$ |
77,147 |
|
|
$ |
84,749 |
|
Less: insurance and mortgage
net interest income |
|
2,294 |
|
|
|
2,120 |
|
|
|
1,574 |
|
|
|
1,493 |
|
|
|
1,376 |
|
Add: Total noninterest income |
|
8,196 |
|
|
|
18,119 |
|
|
|
15,636 |
|
|
|
16,384 |
|
|
|
13,429 |
|
Less: insurance and mortgage
noninterest income |
|
4,727 |
|
|
|
7,335 |
|
|
|
7,587 |
|
|
|
8,792 |
|
|
|
6,255 |
|
Less: positive valuation adjustment on non-marketable equity
securities |
|
— |
|
|
|
10,096 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Less: (loss) gain on sale of securities, net |
|
(4,606 |
) |
|
|
(7,173 |
) |
|
|
— |
|
|
|
144 |
|
|
|
— |
|
Less: gain on sub-debt repurchase |
|
— |
|
|
|
— |
|
|
|
471 |
|
|
|
— |
|
|
|
— |
|
Adjusted total revenue |
|
78,770 |
|
|
|
79,871 |
|
|
|
81,295 |
|
|
|
83,102 |
|
|
|
90,547 |
|
|
|
— |
|
|
|
|
|
|
|
|
|
Efficiency
ratio |
|
75.02 |
% |
|
|
63.59 |
% |
|
|
64.76 |
% |
|
|
60.69 |
% |
|
|
58.32 |
% |
Adjusted efficiency
ratio |
|
66.43 |
|
|
|
62.71 |
|
|
|
61.17 |
|
|
|
58.64 |
|
|
|
53.06 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Years Ended December 31, |
|
|
2023 |
|
|
|
2022 |
|
|
|
|
|
|
(Dollars in thousands, except per share amounts) |
Calculation of
adjusted net income: |
|
|
|
Net interest income after
provision for credit losses |
$ |
282,804 |
|
|
$ |
250,587 |
|
Add: CECL provision for non-PCD loans |
|
— |
|
|
|
14,890 |
|
Adjusted net interest income
after provision for credit losses |
|
282,804 |
|
|
|
265,477 |
|
|
|
|
|
Total noninterest income |
$ |
58,335 |
|
|
$ |
57,274 |
|
Less: MSR write-down |
|
(1,769 |
) |
|
|
(1,950 |
) |
Less: (loss) gain on sales of securities, net |
|
(11,635 |
) |
|
|
1,664 |
|
Less: gain on sub-debt repurchase |
|
471 |
|
|
|
— |
|
Less: positive valuation adjustment on non-marketable equity
securities |
|
10,096 |
|
|
|
— |
|
Adjusted total noninterest
income |
|
61,172 |
|
|
|
57,560 |
|
|
|
|
|
Total noninterest expense |
$ |
235,216 |
|
|
$ |
200,419 |
|
Less: merger-related expense |
|
— |
|
|
|
6,171 |
|
Adjusted total noninterest
expense |
|
235,216 |
|
|
|
194,248 |
|
|
|
|
|
Income tax expense |
$ |
22,123 |
|
|
$ |
19,727 |
|
Add: income tax expense on adjustment items |
|
5,034 |
|
|
|
4,483 |
|
Adjusted income tax
expense |
|
27,157 |
|
|
|
24,210 |
|
|
|
|
|
Net
Income |
$ |
83,800 |
|
|
$ |
87,715 |
|
Adjusted net
income |
$ |
81,603 |
|
|
$ |
104,579 |
|
|
|
|
|
Calculation of
adjusted PTPP earnings: |
|
|
|
Provision for credit
losses |
$ |
16,753 |
|
|
$ |
24,691 |
|
Less: CECL provision for non-PCD loans |
|
— |
|
|
|
14,890 |
|
Adjusted provision for credit
losses |
$ |
16,753 |
|
|
$ |
9,801 |
|
|
|
|
|
Adjusted net
income |
$ |
81,603 |
|
|
$ |
104,579 |
|
Add: provision for credit losses |
|
16,753 |
|
|
|
9,801 |
|
Add: adjusted income tax expense |
|
27,157 |
|
|
|
24,210 |
|
Adjusted PTPP
earnings |
$ |
125,513 |
|
|
$ |
138,590 |
|
|
|
|
|
Calculation of
adjusted dilutive EPS: |
|
|
|
Numerator: |
|
|
|
Adjusted net income |
$ |
81,603 |
|
|
$ |
104,579 |
|
Denominator: |
|
|
|
Weighted average diluted common shares outstanding |
|
30,931,605 |
|
|
|
26,760,592 |
|
Diluted earnings per
share |
$ |
2.71 |
|
|
$ |
3.28 |
|
Adjusted diluted
earnings per share |
|
2.64 |
|
|
|
3.91 |
|
Calculation of
adjusted ROAA and adjusted ROAE: |
|
|
|
Adjusted net income |
$ |
81,603 |
|
|
$ |
104,579 |
|
Divided by total average
assets |
|
9,941,020 |
|
|
|
8,686,231 |
|
ROAA |
|
0.84 |
% |
|
|
1.01 |
% |
Adjusted
ROAA |
|
0.82 |
|
|
|
1.20 |
|
|
|
|
|
Divided by total average
stockholders' equity |
$ |
999,904 |
|
|
$ |
811,483 |
|
ROAE |
|
8.38 |
% |
|
|
10.81 |
% |
Adjusted
ROAE |
|
8.16 |
|
|
|
12.89 |
|
|
|
|
|
Calculation of
adjusted PTPP ROAA and adjusted PTPP ROAE: |
|
|
|
Adjusted PTPP Earnings |
$ |
125,513 |
|
|
$ |
138,590 |
|
Divided by total average
assets |
|
9,941,020 |
|
|
|
8,686,231 |
|
Adjusted PTPP
ROAA |
|
1.26 |
% |
|
|
1.60 |
% |
|
|
|
|
Divided by total average
stockholders' equity |
$ |
999,904 |
|
|
$ |
811,483 |
|
Adjusted PTPP
ROAE |
|
12.55 |
% |
|
|
17.08 |
% |
|
|
|
|
Calculation of ROATCE and adjusted ROATCE: |
|
|
Net income |
$ |
83,800 |
|
|
$ |
87,715 |
|
Adjusted net income |
|
81,603 |
|
|
|
104,579 |
|
|
|
|
|
Total average common
stockholders’ equity |
$ |
999,904 |
|
|
$ |
811,483 |
|
Less: average goodwill |
|
128,679 |
|
|
|
74,205 |
|
Less: average other intangible assets, net |
|
46,501 |
|
|
|
31,479 |
|
Average tangible common
equity |
|
824,724 |
|
|
|
705,799 |
|
|
|
|
|
ROATCE |
|
10.16 |
% |
|
|
12.43 |
% |
Adjusted
ROATCE |
|
9.89 |
|
|
|
14.82 |
|
|
|
|
|
Calculation of
adjusted efficiency ratio: |
|
|
|
Total noninterest expense |
$ |
235,216 |
|
|
$ |
200,419 |
|
Less: insurance and mortgage
noninterest expense |
|
34,349 |
|
|
|
33,533 |
|
Less: merger-related expenses |
|
— |
|
|
|
6,171 |
|
Adjusted total noninterest
expense |
|
200,867 |
|
|
|
160,715 |
|
|
|
|
|
Net interest income |
$ |
299,557 |
|
|
$ |
275,278 |
|
Less: insurance and mortgage
net interest income |
|
7,481 |
|
|
|
4,541 |
|
Add: total noninterest income |
|
58,335 |
|
|
|
57,274 |
|
Less: insurance and mortgage
noninterest income |
|
28,441 |
|
|
|
29,591 |
|
Less: (loss) gain on sales of securities, net |
|
(11,635 |
) |
|
|
1,664 |
|
Less: gain on sub-debt repurchase |
|
471 |
|
|
|
— |
|
Less: positive valuation adjustment on non-marketable equity
securities |
|
10,096 |
|
|
|
— |
|
Adjusted total revenue |
|
323,038 |
|
|
|
296,756 |
|
|
|
|
|
Efficiency
ratio |
|
65.72 |
% |
|
|
60.27 |
% |
Adjusted efficiency
ratio |
|
62.18 |
|
|
|
54.16 |
|
Origin Bancorp (NYSE:OBK)
Historical Stock Chart
From Sep 2024 to Oct 2024
Origin Bancorp (NYSE:OBK)
Historical Stock Chart
From Oct 2023 to Oct 2024