• Origin Bancorp, Inc. Reports Earnings for First Quarter 2021

    المصدر: Nasdaq GlobeNewswire / 28 أبريل 2021 16:30:01   America/New_York

    RUSTON, La., April 28, 2021 (GLOBE NEWSWIRE) -- Origin Bancorp, Inc. (Nasdaq: OBNK) ("Origin" or the "Company"), the holding company for Origin Bank (the "Bank"), today announced record net income of $25.5 million for the quarter ended March 31, 2021. This represents an increase of $8.0 million from the quarter ended December 31, 2020, and an increase of $24.8 million from the quarter ended March 31, 2020. Diluted earnings per share for the quarter ended March 31, 2021, were $1.08, up $0.33 from the linked quarter and up $1.05 from the quarter ended March 31, 2020. Pre-tax, pre-provision earnings for the quarter were a record $32.9 million, an increase of 16.3% on a linked quarter basis, and a 74.7% increase on a prior year quarter basis, while the efficiency ratio improved to 54.5%, a 1,120 basis point improvement from the quarter ended March 31, 2020.

    “Origin delivered strong first quarter results hitting another historic pre-tax, pre-provision earnings high and an all-time quarterly net income high,” said Drake Mills, chairman, president and CEO of Origin Bancorp, Inc. “Our employees remain focused on relationship development and our results for the quarter prove that focus. We will continue to provide shareholder value as we execute on our long-term strategic plan and capitalize on the opportunities before us.”

    Financial Highlights

    • Net income was $25.5 million for the quarter ended March 31, 2021, achieving an all-time quarterly high compared to $17.6 million for the linked quarter and $753,000 for the quarter ended March 31, 2020.
    • Net interest income also achieved a historic quarterly high, reflecting $55.2 million for the quarter ended March 31, 2021, compared to $51.8 million for the linked quarter and $42.8 million for the quarter ended March 31, 2020.
    • Provision expense was $1.4 million for the quarter ended March 31, 2021, compared to provision expense of $6.3 million for the linked quarter and $18.5 million for the quarter ended March 31, 2020.
    • Total deposits at March 31, 2021, were $6.35 billion, an increase of $594.9 million, or 10.3%, from December 31, 2020, and an increase of $1.79 billion, or 39.3%, from March 31, 2020.
    • Total LHFI were $5.85 billion at March 31, 2021, an increase of $125.0 million, or 2.2%, from December 31, 2020, and an increase of $1.37 billion, or 30.5%, from March 31, 2020.

    Coronavirus (COVID-19)

    Origin has continued to meet customers' needs while keeping the safety and well-being of its employees and customers as its top priority. While the Company allowed restricted access to its offices and branches during the height of the pandemic, the Company's offices and branches have been fully opened since March 15, 2021. Origin continues to maintain social distancing measures for its employees, including the requirement to wear face masks unless working in an office or other location that permits social distancing. The Company also continues to encourage its employees to wash their hands thoroughly and frequently and to sanitize work areas when necessary to promote the safety and health of its employees and customers. Thermal kiosks for temperature checks are in use at the entrance of each location and customers are encouraged to wear face masks when entering Origin bank facilities. The Company continues to provide pandemic Paid Time Off to employees and a dedicated hotline is available to quickly assist employees with any COVID-19 related questions or issues. Origin will continue to examine and evaluate its COVID-19 safety protocols in accordance with public health directives.

    Credit Quality

    The COVID-19 pandemic has had a severe impact on the U.S. economy leading to elevated unemployment levels and a recession. The Company's financial results for the first quarter of 2021 have improved from the results achieved during 2020, but there is still uncertainty surrounding the economic outlook.

    The table below includes key credit quality information:

     At and for the three months ended
    (Dollars in thousands)March 31,
    2021    		 December 31,
    2020    		 March 31,
    2020
    Allowance for loan credit losses$85,136  $86,670  $56,063 
    Classified loans95,321  107,781  74,684 
    Total nonperforming LHFI33,358  26,149  33,032 
    Provision for credit losses1,412  6,333  18,531 
    Net charge-offs2,894  1,757  1,101 
    Credit quality ratios:     
    Allowance for loan credit losses to nonperforming LHFI255.22% 331.45% 169.72%
    Allowance for loan credit losses to total LHFI1.46  1.51  1.25 
    Allowance for loan credit losses to total LHFI excluding PPP and warehouse loans (1)2.02  2.10  1.37 
    Nonperforming LHFI to LHFI0.57  0.46  0.74 
    Net charge-offs to total average LHFI (annualized)0.21  0.13  0.11 

    ____________________________
    (1) Please see the Loan Data schedule at the back of this document for additional information.

    The decrease in provision expense compared to the quarter ended March 31, 2020, was primarily due to improvement in forecasted economic conditions including the passing of additional government stimulus, widespread vaccine availability and reduced levels of new virus cases, at March 31, 2021, as compared to forecasted worsening economic conditions and uncertainty at March 31, 2020. While there are some improvements in economic forecasts, uncertainty remains particularly related to the 2021 year and the deployment and effectiveness of COVID-19 vaccines.

    The Company's net charge-offs increased $1.1 million compared to the quarter ended December 31, 2020, and $1.8 million compared to the quarter ended March 31, 2020. The increase in net charge-offs compared to the linked quarter was primarily due to five commercial and industrial loans, reflecting four loan relationships, that were written down during the quarter ended March 31, 2021, totaling $2.8 million. Annualized net charge-offs as a percentage of average LHFI were 0.21% for the quarter ending March 31, 2021, compared to 0.13% for the quarter ended December 31, 2020. For the year ended December 31, 2020, net charge-offs as a percentage of average LHFI was 0.22%.

    Classified loans declined $12.5 million at March 31, 2021, compared to December 31, 2020, and represented 1.81% as a percentage of LHFI, excluding PPP loans, and 11.10% as a percentage of total risk-based capital (at the Origin Bancorp, Inc. level) compared to 2.08% and 12.88%, respectively, at December 31, 2020.

    The Company continues to closely monitor those industry sectors that could experience a more protracted recovery from the current economic downturn, specifically the sectors of hotels, non-essential retail, restaurants, and assisted living ("selected sectors"). For more information on Origin’s COVID-19 selected sectors, please see the Investor Presentation furnished to the SEC on April 28, 2021, and on Origin's website at www.origin.bank under the Investor Relations, News & Events, Events & Presentations link.

    The following table presents certain information on the selected sectors at the periods indicated:

     March 31, 2021 March 31, 2020
    (Dollars in thousands)Balance % of LHFI, excl.
    PPP loans    		 Balance % of LHFI, excl.
    PPP loans
    LHFI, excluding PPP loans, in selected sectors$510,490  9.7% $445,671  9.9%
    Nonperforming LHFI in selected sectors1,131  —  14,792  0.3 
    Loans in COVID-19 related forbearance5,293  0.1  769,460  17.2 
                

    Results of Operations for the Three Months Ended March 31, 2021

    Net Interest Income and Net Interest Margin

    Net interest income for the quarter ended March 31, 2021, was $55.2 million, an increase of $3.4 million, or 6.6%, compared to the linked quarter. The increase was primarily driven by a $2.8 million increase in accelerated PPP fee earnings earned through the forgiveness process and a $793,000 decrease in deposit costs. The yield on PPP loans was 4.40% during the quarter ended March 31, 2021, compared to 2.36% during the linked quarter ended December 31, 2020, driven almost exclusively by the accelerated recognition of deferred loan fees associated with the forgiveness of the underlying PPP loans by the U.S. Small Business Administration.

    Interest-bearing deposit expense was $3.8 million during the current quarter, compared to $4.6 million for the quarter ended December 31, 2020, primarily due to a reduction in deposit rates. The average rate on time deposits decreased to 0.95% for the current quarter, down from 1.20% for the linked quarter, contributing $454,000 to the decrease in interest expense on interest-bearing deposits. The average rate on interest-bearing deposits was 0.37% for the current quarter, down from 0.43% for the linked quarter.

    The fully tax-equivalent net interest margin ("NIM") was 3.22% for the current quarter, a 15 basis point increase from the linked quarter and a 22 basis point decrease from the quarter ended March 31, 2020. Excluding PPP loans, the fully tax-equivalent NIM was 3.15%, a two basis point decrease from the linked quarter. The impact on the fully tax-equivalent NIM of the recognition of deferred loan fees associated with the forgiveness of the underlying PPP loans during the quarter ended March 31, 2021, when compared to the fully tax-equivalent NIM for December 31, 2020, was 16 basis points. The yield earned on interest-earning assets was 3.58%, a 11 basis point increase and a 79 basis point decrease compared to the linked quarter and the quarter ended March 31, 2020, respectively. Excluding PPP loans, the yield earned on interest-earning assets was 3.51%, a six basis point decrease compared to the linked quarter. The rate paid on total interest-bearing liabilities for the quarter ended March 31, 2021, was 0.57%, representing a decrease of seven basis points and 80 basis points compared to the linked quarter and the quarter ended March 31, 2020, respectively.

    Noninterest Income

    Noninterest income for the quarter ended March 31, 2021, was $17.1 million, an increase of $1.8 million, or 11.4%, from the linked quarter. The increase from the linked quarter was primarily driven by increases of $1.4 million, $1.4 million and $1.0 million in gain on sales of securities, net, limited partnership investment income, and insurance commission and fee income, respectively, which was partially offset by a $2.0 million decrease in mortgage banking revenue.

    The $1.4 million increase in the gain on sale of securities compared to the linked period was the result of the active management of the investment portfolio and the movement out of positions that were not performing in line with expectations.

    The $1.4 million increase in the limited partnership investment income during the quarter ended March 31, 2021, compared to the linked quarter was primarily due to valuation increases as a result of investment performance in two funds.

    The $1.0 million increase in insurance commission and fee income is attributed to seasonality, as there is typically higher insurance revenue in the first quarter of each year.

    The $2.0 million decrease in mortgage banking revenue is mainly due to a decrease in the mortgage loan pipeline during the quarter ended March 31, 2021, when compared to the linked quarter in addition to an increase in 30 year mortgage rates causing the overall pipeline valuation to drop.

    Noninterest Expense

    Noninterest expense for the quarter ended March 31, 2021, was $39.4 million, an increase of $552,000, compared to the linked quarter. The increase from the linked quarter was largely driven by an increase of $1.5 million in other noninterest expense, which was partially offset by decreases of $428,000 and $203,000 in advertising and marketing expenses, and professional services fee, respectively.

    The increase in other noninterest expense was due to prepayment fees of $1.6 million incurred related to the early termination of long-term FHLB advances during the quarter ended March 31, 2021. The Company terminated the advances early due to the relatively high cost of the advances, partially funding the payoff with the sale of lower yielding securities during the quarter.

    The decrease in advertising and marketing expense was due to media related campaigns during the quarter ended December 31, 2020, which were not recurring in the current quarter.

    The decrease in professional services fee was due to a $254,000 consulting fee paid to a loan sale advisor who assisted in the sale of a performing loan during the quarter ended December 31, 2020.

    Financial Condition

    Loans

    • Total LHFI increased $125.0 million compared to the linked quarter and $1.37 billion compared to March 31, 2020.
    • PPP loans, net of deferred fees and costs, totaled $584.1 million at March 31, 2021, an increase of $37.6 million compared to the linked quarter. Net deferred loan fees and costs on PPP loans were $11.5 million at March 31, 2021.
    • Average LHFI increased $193.6 million, compared to the linked quarter, and $1.53 billion compared to March 31, 2020.

    Total LHFI at March 31, 2021, were $5.85 billion, reflecting an increase of 2.2% compared to the linked quarter and an increase of 30.5%, compared to March 31, 2020. The increase in LHFI compared to March 31, 2020, was primarily driven by an increase in mortgage warehouse lines of credit and PPP loans. Mortgage warehouse lines of credit increased by $653.1 million primarily due to increased mortgage activity driven by the continued low interest rate environment, coupled with additional mortgage warehouse clients being onboarded during mid-2020 and funding loans over the last four quarters. Mortgage warehouse loan growth has eased during the current quarter as mortgage interest rates have broadly started to increase from previous levels.

    Deposits

    • Total deposits increased $594.9 million compared to the linked quarter and increased $1.79 billion compared to March 31, 2020.
    • Business depositors drove an increase of $398.5 million and $1.12 billion compared to the linked quarter and March 31, 2020, respectively.
    • Average total deposits for the quarter ended March 31, 2021, decreased by $14.2 million over the linked quarter and increased $1.55 billion over the quarter ended March 31, 2020.

    Total deposits at March 31, 2021, were $6.35 billion, reflecting an increase of 10.3% compared to the linked quarter and an increase of 39.3% compared to March 31, 2020. Money market, brokered and noninterest-bearing deposits increased by $333.8 million, $140.5 million and $129.0 million, respectively, compared to the linked quarter. Brokered deposits increased in response to changes in funding costs and sources over the current quarter. Historically, from time to time, the Company has used noncore funding sources, including brokered deposits, to support the increase in mortgage warehouse lines of credit and has shifted primarily between brokered deposits and FHLB advances, which may impact the balances in brokered deposits as funding costs and sources change.

    Increases of $549.9 million and $508.0 million in money market business and noninterest-bearing business accounts, respectively, drove the increase in total deposits compared to March 31, 2020, primarily due to funds from government stimulus, including PPP loan funds.

    For the quarter ended March 31, 2021, average noninterest-bearing deposits as a percentage of total average deposits was 29.0%, compared to 28.7% for the quarter ended December 31, 2020, and 25.4% for the quarter ended March 31, 2020.

    Borrowings

    • Average FHLB advances and other borrowings for the quarter ended March 31, 2021, increased by $210.3 million, compared to the quarter ended December 31, 2020, and increased by $243.2 million over the quarter ended March 31, 2020.

    Average FHLB advances and other borrowings increased 60.5% for the quarter ended March 31, 2021, compared to the quarter ended December 31, 2020, and increased 77.3% compared to the quarter ended March 31, 2020. During the quarter ended March 31, 2021, the Company increased its short-term average FHLB advances to $278.1 million from $64.9 million during the quarter ended December 31, 2020. The increase was primarily due to shifts in funding costs and sources as the Company supports the ongoing mortgage warehouse loan growth. The Company prepaid $13.1 million in long-term FHLB advances during the quarter ended March 31, 2021, and incurred related prepayment fees of $1.6 million.

    Stockholders' equity was $656.4 million at March 31, 2021, an increase of $9.2 million compared to $647.2 million at December 31, 2020, and an increase of $49.7 million compared to $606.6 million at March 31, 2020. The increase from the linked quarter was primarily due to net income for the quarter of $25.5 million, which was partially offset by the quarterly dividend declared and other comprehensive loss during the quarter ended March 31, 2021. Additionally, during the first quarter of 2021, the Company repurchased a total of 37,568 shares of its common stock pursuant to its stock buyback program at an average price per share of $33.42, for an aggregate purchase price of $1.3 million. The increase from the March 31, 2020, quarter was primarily caused by retained earnings and other comprehensive income during the intervening period.

    Conference Call

    Origin will hold a conference call to discuss its first quarter 2021 results on Thursday, April 29, 2021, at 8:00 a.m. Central Time (9:00 a.m. Eastern Time). To participate in the live conference call, please dial (844) 695-5516; International: (412) 902-6750 and request to be joined into the Origin Bancorp, Inc. (OBNK) call. A simultaneous audio-only webcast may be accessed via Origin's website at www.origin.bank under the Investor Relations, News & Events, Events & Presentations link or directly by visiting https://services.choruscall.com/links/obnk210429.html.

    If you are unable to participate during the live webcast, the webcast will be archived on the Investor Relations section of Origin's website at www.origin.bank, under Investor Relations, News & Events, Events & Presentations.

    About Origin Bancorp, Inc.

    Origin is a financial holding company headquartered in Ruston, Louisiana. Origin's wholly owned bank subsidiary, Origin Bank, was founded in 1912. Deeply rooted in Origin's history is a culture committed to providing personalized, relationship banking to its clients and communities. Origin provides a broad range of financial services to businesses, municipalities, high net-worth individuals and retail clients. Origin currently operates 44 banking centers located from Dallas/Fort Worth and Houston, Texas across North Louisiana and into Mississippi. For more information, visit www.origin.bank.

    Forward-Looking Statements

    This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include information regarding Origin's future financial performance, business and growth strategy, projected plans and objectives, including the Company’s loan loss reserves and allowance for credit losses related to the COVID-19 pandemic and any expected purchases of its outstanding common stock, and related transactions and other projections based on macroeconomic and industry trends, including expectations regarding efforts to respond to the COVID-19 pandemic and 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 "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" or 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: the continuing duration and impacts of the COVID-19 global pandemic and continuing development and distribution of COVID-19 vaccines, as well as other efforts to contain the virus's transmission, including the effect of these factors and developments on Origin’s business, customers and economic conditions generally, as well as the impact of the actions taken by governmental authorities to address the impact of COVID-19 on the United States economy, including, any economic stimulus legislation; 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; Origin’s ability to anticipate interest rate changes and manage interest rate risk; the effectiveness of Origin’s risk management framework and quantitative models; the risk of widespread inflation; 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; business and economic conditions generally and in the financial services industry, nationally and within Origin's primary market areas; 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; increased competition in the financial services industry, particularly from regional and national institutions; difficult market conditions and unfavorable economic trends in the United States generally, and particularly in the market areas in which Origin operates and in which its loans are concentrated; 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 the 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; 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 future of the London Interbank Offered Rate and the impact of any replacement alternatives 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, 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; 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. Furthermore, many of these risks and uncertainties are currently amplified by and may continue to be amplified by or may, in the future, be amplified by, the COVID-19 pandemic and the impact of varying governmental responses that affect Origin's customers and the economies where they operate. 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 purpose only, are not forecasts and may not reflect actual results.

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

     
    Origin Bancorp, Inc.
    Selected Quarterly Financial Data
      
     At and for the three months ended
     March 31,
    2021    		 December 31,
    2020    		 September 30,
    2020    		 June 30,
    2020    		 March 31,
    2020
              
    Income statement and share amounts(Dollars in thousands, except per share amounts, unaudited)
    Net interest income$55,239  $51,819  $50,617  $46,290  $42,810 
    Provision for credit losses1,412  6,333  13,633  21,403  18,531 
    Noninterest income17,131  15,381  18,051  19,076  12,144 
    Noninterest expense39,436  38,884  38,734  38,220  36,097 
    Income before income tax expense31,522  21,983  16,301  5,743  326 
    Income tax (benefit) expense6,009  4,431  3,206  786  (427)
    Net income$25,513  $17,552  $13,095  $4,957  $753 
    Pre-tax, pre-provision ("PTPP") earnings (1)$32,934  $28,316  $29,934  $27,146  $18,857 
    Basic earnings per common share1.09  0.75  0.56  0.21  0.03 
    Diluted earnings per common share1.08  0.75  0.56  0.21  0.03 
    Dividends declared per common share0.10  0.10  0.0925  0.0925  0.0925 
    Weighted average common shares outstanding - basic23,393,356  23,392,684  23,374,496  23,347,744  23,353,601 
    Weighted average common shares outstanding - diluted23,590,430  23,543,917  23,500,596  23,466,326  23,530,212 
              
    Balance sheet data         
    Total LHFI$5,849,760  $5,724,773  $5,612,666  $5,312,194  $4,481,185 
    Total assets7,563,175  7,628,268  7,101,338  6,643,909  6,049,638 
    Total deposits6,346,194  5,751,315  5,935,925  5,372,222  4,556,246 
    Total stockholders' equity656,355  647,150  627,637  614,781  606,631 
              
    Performance metrics and capital ratios         
    Yield on LHFI4.03% 3.89% 4.02% 4.09% 4.85%
    Yield on interest earnings assets3.58  3.47  3.64  3.65  4.37 
    Cost of interest bearing deposits0.37  0.43  0.61  0.79  1.28 
    Cost of total deposits0.26  0.31  0.42  0.54  0.95 
    Net interest margin, fully tax equivalent3.22  3.07  3.18  3.09  3.44 
    Net interest margin, excluding PPP loans, fully tax equivalent (2)3.15  3.17  3.28  3.15  N/A 
    Return on average stockholders' equity (annualized)15.73  10.92  8.28  3.23  0.50 
    Return on average assets (annualized)1.40  0.97  0.77  0.31  0.06 
    PTPP return on average stockholders' equity (annualized) (1)20.30  17.61  18.92  17.67  12.41 
    PTPP return on average assets (annualized) (1)1.81  1.57  1.77  1.69  1.40 
    Efficiency ratio (3)54.49  57.86  56.41  58.47  65.69 
    Book value per common share$27.94  $27.53  $26.70  $26.16  $25.84 
    Tangible book value per common share (1)26.66  26.23  25.39  24.84  24.51 
    Common equity tier 1 to risk-weighted assets (4)10.16% 9.95% 9.93% 10.35% 10.86%
    Tier 1 capital to risk-weighted assets (4)10.32  10.11  10.09  10.52  11.04 
    Total capital to risk-weighted assets (4)13.92  13.79  12.48  12.91  13.38 
    Tier 1 leverage ratio (4)8.67  8.62  9.19  9.10  10.71 

    ____________________________
    (1) PTPP earnings, PTPP return on average stockholders' equity, PTPP return on average assets and tangible book value per common share are non-GAAP financial measures. For a reconciliation of these non-GAAP financial measures to their comparable GAAP measures, please see page 14.
    (2) Net interest margin, excluding PPP loans, fully tax equivalent 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.
    (4) March 31, 2021, 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.
    Consolidated Quarterly Statements of Income
      
     Three months ended
     March 31,
    2021    		 December 31,
    2020    		 September 30,
    2020    		 June 30,
    2020    		 March 31,
    2020
              
    Interest and dividend income(Dollars in thousands, except per share amounts, unaudited)
    Interest and fees on loans$56,810  $54,193  $54,150  $50,722  $50,049 
    Investment securities-taxable3,300  3,154  2,704  2,732  2,712 
    Investment securities-nontaxable1,672  1,708  1,571  1,391  758 
    Interest and dividend income on assets held in other financial institutions345  367  375  619  1,497 
    Total interest and dividend income62,127  59,422  58,800  55,464  55,016 
    Interest expense         
    Interest-bearing deposits3,789  4,582  5,698  6,620  10,250 
    FHLB advances and other borrowings1,269  1,339  1,564  1,641  1,351 
    Subordinated debentures1,830  1,682  921  913  605 
    Total interest expense6,888  7,603  8,183  9,174  12,206 
    Net interest income 55,239  51,819  50,617  46,290  42,810 
    Provision for credit losses1,412  6,333  13,633  21,403  18,531 
    Net interest income after provision for credit losses53,827  45,486  36,984  24,887  24,279 
    Noninterest income         
    Service charges and fees3,343  3,420  3,268  2,990  3,320 
    Mortgage banking revenue4,577  6,594  9,523  10,717  2,769 
    Insurance commission and fee income3,771  2,732  3,218  3,109  3,687 
    Gain on sales of securities, net1,668  225  301  —  54 
    (Loss) on sales and disposals of other assets, net(38) (33) (247) (908) (25)
    Limited partnership investment income (loss)1,772  368  130  9  (429)
    Swap fee income348  233  110  1,527  676 
    Other fee income771  604  576  607  466 
    Other income919  1,238  1,172  1,025  1,626 
    Total noninterest income17,131  15,381  18,051  19,076  12,144 
    Noninterest expense         
    Salaries and employee benefits22,325  22,475  22,597  24,045  21,988 
    Occupancy and equipment, net4,339  4,271  4,263  4,267  4,221 
    Data processing2,173  2,178  2,065  2,075  2,003 
    Electronic banking961  942  954  890  900 
    Communications415  449  422  419  477 
    Advertising and marketing680  1,108  1,281  610  711 
    Professional services973  1,176  785  843  1,171 
    Regulatory assessments1,170  1,135  1,310  766  615 
    Loan related expenses1,705  1,856  1,809  1,509  1,142 
    Office and operations1,454  1,472  1,367  1,344  1,441 
    Intangible asset amortization234  237  237  287  299 
    Franchise tax expense619  665  511  514  496 
    Other expenses2,388  920  1,133  651  633 
    Total noninterest expense39,436  38,884  38,734  38,220  36,097 
    Income before income tax expense31,522  21,983  16,301  5,743  326 
    Income tax expense (benefit)6,009  4,431  3,206  786  (427)
    Net income$25,513  $17,552  $13,095  $4,957  $753 
    Basic earnings per common share$1.09  $0.75  $0.56  $0.21  $0.03 
    Diluted earnings per common share1.08  0.75  0.56  0.21  0.03 
                   


     
    Origin Bancorp, Inc.
    Consolidated Balance Sheets
              
    (Dollars in thousands)March 31,
    2021    		 December 31,
    2020    		 September 30,
    2020    		 June 30,
    2020    		 March 31,
    2020
    Assets(Unaudited)   (Unaudited) (Unaudited) (Unaudited)
    Cash and due from banks$64,330  $60,544  $61,250  $57,054  $91,104 
    Interest-bearing deposits in banks200,571  316,670  160,661  99,282  469,075 
    Total cash and cash equivalents264,901  377,214  221,911  156,336  560,179 
    Securities:         
    Available for sale980,132  1,004,674  797,260  720,616  601,637 
    Held to maturity, net of allowance for credit losses37,983  38,128  38,193  38,287  28,383 
    Securities carried at fair value through income11,077  11,554  11,813  11,977  12,242 
    Total securities1,029,192  1,054,356  847,266  770,880  642,262 
    Non-marketable equity securities held in other financial institutions47,274  62,586  38,052  41,864  52,267 
    Loans held for sale144,950  191,512  155,525  121,541  75,322 
    Loans5,849,760  5,724,773  5,612,666  5,312,194  4,481,185 
    Less: allowance for loan credit losses85,136  86,670  81,643  70,468  56,063 
    Loans, net of allowance for loan credit losses5,764,624  5,638,103  5,531,023  5,241,726  4,425,122 
    Premises and equipment, net81,064  81,763  79,254  80,025  80,193 
    Mortgage servicing rights17,552  13,660  14,322  15,235  16,122 
    Cash surrender value of bank-owned life insurance37,757  37,553  37,332  37,102  36,874 
    Goodwill and other intangible assets, net30,246  30,480  30,717  30,953  31,241 
    Accrued interest receivable and other assets145,615  141,041  145,936  148,247  130,056 
    Total assets$7,563,175  $7,628,268  $7,101,338  $6,643,909  $6,049,638 
    Liabilities and Stockholders' Equity         
    Noninterest-bearing deposits$1,736,534  $1,607,564  $1,599,436  $1,584,746  $1,115,811 
    Interest-bearing deposits3,962,082  3,478,985  3,640,587  3,041,859  2,673,881 
    Time deposits647,578  664,766  695,902  745,617  766,554 
    Total deposits6,346,194  5,751,315  5,935,925  5,372,222  4,556,246 
    FHLB advances and other borrowings325,751  984,608  360,325  478,260  716,909 
    Subordinated debentures157,239  157,181  78,596  78,567  78,539 
    Accrued expenses and other liabilities77,636  88,014  98,855  100,079  91,313 
    Total liabilities6,906,820  6,981,118  6,473,701  6,029,128  5,443,007 
    Stockholders' equity         
    Common stock117,444  117,532  117,533  117,506  117,380 
    Additional paid-in capital236,934  237,341  236,679  236,156  235,709 
    Retained earnings289,792  266,628  251,427  240,506  237,720 
    Accumulated other comprehensive income12,185  25,649  21,998  20,613  15,822 
    Total stockholders' equity656,355  647,150  627,637  614,781  606,631 
    Total liabilities and stockholders' equity$7,563,175  $7,628,268  $7,101,338  $6,643,909  $6,049,638 
                        


     
    Origin Bancorp, Inc.
    Loan Data
      
     At and for the three months ended
    (Dollars in thousands, unaudited)March 31,
    2021    		 December 31,
    2020    		 September 30,
    2020    		 June 30,
    2020    		 March 31,
    2020
    LHFI         
    Commercial real estate$1,454,649  $1,387,939  $1,367,916  $1,323,754  $1,302,520 
    Construction/land/land development548,236  531,860  560,857  570,032  563,820 
    Residential real estate904,753  885,120  832,055  769,354  703,263 
    Total real estate loans2,907,638  2,804,919  2,760,828  2,663,140  2,569,603 
    Paycheck Protection Program584,148  546,519  552,329  549,129  — 
    Commercial and industrial1,250,350  1,271,343  1,263,279  1,313,405  1,455,497 
    Mortgage warehouse lines of credit1,090,347  1,084,001  1,017,501  769,157  437,257 
    Consumer17,277  17,991  18,729  17,363  18,828 
    Total LHFI5,849,760  5,724,773  5,612,666  5,312,194  4,481,185 
    Less: allowance for loan credit losses85,136  86,670  81,643  70,468  56,063 
    LHFI, net$5,764,624  $5,638,103  $5,531,023  $5,241,726  $4,425,122 
              
    Nonperforming assets         
    Nonperforming LHFI         
    Commercial real estate$1,085  $3,704  $4,669  $4,717  $11,306 
    Construction/land/land development2,431  2,962  2,976  3,726  3,850 
    Residential real estate10,692  6,530  8,259  6,713  4,076 
    Commercial and industrial19,094  12,897  14,255  14,772  13,619 
    Consumer56  56  69  119  181 
    Total nonperforming LHFI33,358  26,149  30,228  30,047  33,032 
    Nonperforming loans held for sale963  681  483  734  840 
    Total nonperforming loans34,321  26,830  30,711  30,781  33,872 
    Repossessed assets3,893  1,927  718  4,155  5,296 
    Total nonperforming assets$38,214  $28,757  $31,429  $34,936  $39,168 
    Classified assets$99,214  $109,708  $101,577  $100,299  $79,980 
    Past due LHFI (1)26,574  25,763  29,194  23,751  51,018 
              
    Allowance for loan credit losses         
    Balance at beginning of period$86,670  $81,643  $70,468  $56,063  $37,520 
    Impact of adopting ASC 326—  —  —  —  1,248 
    Provision for loan credit losses1,360  6,784  12,970  20,878  18,396 
    Loans charged off3,027  2,089  2,293  6,587  1,425 
    Loan recoveries133  332  498  114  324 
    Net charge-offs2,894  1,757  1,795  6,473  1,101 
    Balance at end of period$85,136  $86,670  $81,643  $70,468  $56,063 
              
    Credit quality ratios         
    Total nonperforming assets to total assets0.51% 0.38% 0.44% 0.53% 0.65%
    Total nonperforming loans to total loans0.57  0.45  0.53  0.57  0.74 
    Nonperforming LHFI to LHFI0.57  0.46  0.54  0.57  0.74 
    Past due LHFI to LHFI0.45  0.45  0.52  0.45  1.14 
    Allowance for loan credit losses to nonperforming LHFI255.22  331.45  270.09  234.53  169.72 
    Allowance for loan credit losses to total LHFI1.46  1.51  1.45  1.33  1.25 
    Allowance for loan credit losses to total LHFI excluding PPP and warehouse loans (2)2.02  2.10 
    		  2.00  1.75  1.37 
    Net charge-offs to total average LHFI (annualized)0.21  0.13  0.13  0.53  0.11 
    Net charge-offs (recoveries) to total average LHFI (annualized), excluding PPP loans0.23  0.14  0.15  0.58  0.11 

    ____________________________
    (1) Past due LHFI are defined as loans 30 days or more past due.
    (2) The allowance for loan credit losses ("ACL") to total LHFI excluding PPP and warehouse loans is calculated by excluding the ACL for warehouse loans from the numerator and excluding the PPP and warehouse loans from the denominator. Mortgage warehouse loans increased significantly during the period, but, due to their low-risk profile, require a disproportionately low allocation of the allowance for loan credit losses.

     
    Origin Bancorp, Inc.
    Average Balances and Yields/Rates
      
     Three months ended
     March 31, 2021 December 31, 2020 March 31, 2020
     Average
    Balance    		 Yield/Rate Average
    Balance    		 Yield/Rate Average
    Balance    		 Yield/Rate
                
    Assets(Dollars in thousands, unaudited)
    Commercial real estate$1,421,819  4.16% $1,362,025  4.27% $1,274,633  4.88%
    Construction/land/land development541,782  4.09  533,756  4.21  545,076  5.21 
    Residential real estate888,208  4.04  853,299  4.23  695,040  4.79 
    Paycheck Protection Program ("PPP")565,653  4.40  551,325  2.36  —  — 
    Commercial and industrial excl. PPP1,255,436  3.95  1,242,018  3.83  1,372,801  4.74 
    Mortgage warehouse lines of credit961,808  3.67  897,716  3.81  210,480  4.46 
    Consumer17,649  5.81  18,575  6.03  19,687  6.77 
    LHFI5,652,355  4.03  5,458,714  3.89  4,117,717  4.85 
    Loans held for sale87,177  2.71  114,196  2.73  33,288  4.89 
    Loans receivable5,739,532  4.01  5,572,910  3.87  4,151,005  4.85 
    Investment securities-taxable750,801  1.78  662,527  1.89  450,576  2.42 
    Investment securities-nontaxable295,000  2.30  291,702  2.33  102,954  2.96 
    Non-marketable equity securities held in other financial institutions60,326  1.45  39,763  1.99  40,494  3.09 
    Interest-bearing balances due from banks196,616  0.27  236,772  0.28  319,953  1.49 
    Total interest-earning assets7,042,275  3.58  6,803,674  3.47  5,064,982  4.37 
    Noninterest-earning assets(1)340,220    360,354    335,722   
    Total assets$7,382,495    $7,164,028    $5,400,704   
                
    Liabilities and Stockholders' Equity           
    Liabilities           
    Interest-bearing liabilities           
    Savings and interest-bearing transaction accounts$3,513,281  0.26% $3,520,543  0.29% $2,444,953  1.05%
    Time deposits656,255  0.95  677,651  1.20  781,907  1.98 
    Total interest-bearing deposits4,169,536  0.37  4,198,194  0.43  3,226,860  1.28 
    FHLB advances and other borrowings557,798  0.92  347,494  1.53  314,616  1.73 
    Subordinated debentures157,221  4.72  144,475  4.63  51,308  4.74 
    Total interest-bearing liabilities4,884,555  0.57  4,690,163  0.64  3,592,784  1.37 
    Noninterest-bearing liabilities           
    Noninterest-bearing deposits1,700,523    1,686,088    1,097,646   
    Other liabilities(1)139,554    148,269    99,112   
    Total liabilities6,724,632    6,524,520    4,789,542   
    Stockholders' Equity657,863    639,508    611,162   
    Total liabilities and stockholders' equity$7,382,495    $7,164,028    $5,400,704   
    Net interest spread  3.01%   2.83%   3.00%
    Net interest margin  3.18    3.03    3.40 
    Net interest margin - (tax- equivalent)(2)  3.22    3.07    3.44 
    Net interest margin excluding PPP loans - (tax- equivalent)(3)  3.15    3.17    3.44 
                

    ____________________________
    (1) Includes Government National Mortgage Association ("GNMA") repurchase average balances of $59.0 million, $61.9 million, and $27.9 million for the three months ended March 31, 2021, December 31, 2020, and March 31, 2020, respectively. The GNMA repurchase asset and liability are recorded as equal offsetting amounts in the consolidated balance sheets, with the asset included in Loans held for sale and the liability included in FHLB advances and other borrowings.
    (2) In order to present pre-tax income and resulting yields on tax-exempt investments comparable to those on taxable investments, a tax-equivalent adjustment has been computed. This adjustment also includes income tax credits received on Qualified School Construction Bonds.
    (3) Net interest margin, excluding PPP loans, fully tax equivalent 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
      
     At and for the three months ended
     March 31,
    2021    		 December 31,
    2020    		 September 30,
    2020    		 June 30,
    2020    		 March 31,
    2020
              
    Calculation of Tangible Common Equity:(Dollars in thousands, except per share amounts, unaudited)
    Total common stockholders' equity$656,355  $647,150  $627,637  $614,781  $606,631 
    Less: goodwill and other intangible assets, net30,246  30,480  30,717  30,953  31,241 
    Tangible Common Equity$626,109  $616,670  $596,920  $583,828  $575,390 
              
    Calculation of Tangible Book Value per Common Share:        
    Divided by common shares outstanding at the end of the period23,488,884  23,506,312  23,506,586  23,501,233  23,475,948 
    Tangible Book Value per Common Share$26.66  $26.23  $25.39  $24.84  $24.51 
              
    Calculation of PTPP Earnings:         
    Net Income$25,513  $17,552  $13,095  $4,957  $753 
    Plus: provision for credit losses1,412  6,333  13,633  21,403  18,531 
    Plus: income tax expense6,009  4,431  3,206  786  (427)
    PTPP Earnings$32,934  $28,316  $29,934  $27,146  $18,857 
              
    Calculation of PTPP ROAA and PTPP ROAE:         
    PTPP Earnings$32,934  $28,316  $29,934  $27,146  $18,857 
    Divided by number of days in the quarter90  92  92  91  91 
    Multiplied by the number of days in the year365  366  366  366  366 
    Annualized PTPP Earnings$133,566  $112,648  $119,085  $109,181  $75,842 
              
    Divided by total average assets$7,382,495  $7,164,028  $6,746,585  $6,447,526  $5,400,704 
    PTPP ROAA (annualized)1.81% 1.57% 1.77% 1.69% 1.40%
              
    Divided by total average stockholder's equity$657,863  $639,508  $629,533  $617,898  $611,162 
    PTPP ROAE (annualized)20.30% 17.61% 18.92% 17.67% 12.41%
                   


    Primary Logo

شارك على،