• Origin Bancorp, Inc. Reports Earnings for Third Quarter 2023

    المصدر: Nasdaq GlobeNewswire / 25 أكتوبر 2023 16:15:02   America/New_York

    RUSTON, La., Oct. 25, 2023 (GLOBE NEWSWIRE) -- Origin Bancorp, Inc. (NYSE: OBK) (“Origin,” “we,” “our” or the “Company”), the holding company for Origin Bank (the “Bank”), today announced net income of $24.3 million, or $0.79 diluted earnings per share for the quarter ended September 30, 2023, compared to net income of $21.8 million, or $0.70 diluted earnings per share, for the quarter ended June 30, 2023. Adjusted pre-tax, pre-provision (“adjusted PTPP”)(1) earnings were $30.7 million for the quarter ended September 30, 2023.

    “Origin reported strong earnings this quarter as our team remained focused on executing on our strategic plan and delivering for our customers and communities,” said Drake Mills, chairman, president and CEO of Origin Bancorp, Inc. “Economic activity remains strong throughout our markets, and our results reflect the continued strength and stability of our company."

    (1) Adjusted PTPP earnings is a non-GAAP financial measure, please see the last few pages of this document for a reconciliation of this alternative financial measure to its comparable GAAP measure.

    Financial Highlights

    • Net income was $24.3 million for the quarter ended September 30, 2023, reflecting an increase of $2.6 million, or 11.7%, compared to the linked quarter. The adjusted net income(1) was $22.0 million for the quarter ended September 30, 2023, reflecting an increase of $616,000, or 2.9%, compared to the linked quarter.
    • Diluted earnings per share (“EPS”) was $0.79 for the quarter ended September 30, 2023, reflecting an increase of $0.09, or 12.9%, compared to $0.70 for the linked quarter. The adjusted diluted earnings per share(1) was $0.71 for the quarter ended September 30, 2023, reflecting an increase of $0.02, or 2.9%, compared to $0.69 for the linked quarter.
    • During September 2023, we sold $181.9 million of available-for-sale investment securities at a loss of $7.2 million, and used the proceeds to pay down Federal Home Loan Bank (“FHLB”) advances, which negatively impact our basic and diluted EPS by $0.18 for the quarter ended September 30, 2023.
    • During September 2023, we recorded a $10.1 million positive valuation adjustment on one of our non-marketable equity securities, which positively impact our basic and diluted EPS by $0.26 for the quarter ended September 30, 2023.
    • Loans held for investment (“LHFI”), excluding mortgage warehouse lines of credit, to deposits were 87.0% at September 30, 2023, compared to 83.5% at June 30, 2023. Cash and liquid securities as a percentage of total assets was 11.6% at September 30, 2023, compared to 11.1% at June 30, 2023.
    • Book value per common share was $32.32 at September 30, 2023, reflecting a decrease of $0.01, compared to the linked quarter. Tangible book value per common share(1) was $26.78 at September 30, 2023, reflecting an increase of $0.07, or 0.3%, compared to the linked quarter.
    • At September 30, 2023, and June 30, 2023, Company level common equity Tier 1 capital to risk-weighted assets was 11.45%, and 11.01%, respectively, the Tier 1 leverage ratio was 10.00% and 9.65%, respectively, and the total capital ratio was 14.60% and 14.11%, respectively. Tangible common equity to tangible assets(1) was 8.66% at September 30, 2023, compared to 8.25% at June 30, 2023.

    (1) Adjusted net income, adjusted diluted earnings per share, tangible book value per common share and tangible common equity to tangible assets are non-GAAP financial measures. Please see the last few pages of this document for a reconciliation of these alternative financial measures to their comparable GAAP measures.

    Results of Operations for the Three Months Ended September 30, 2023

    Net Interest Income and Net Interest Margin

    Net interest income for the quarter ended September 30, 2023, was $74.1 million, a decrease of $1.2 million, or 1.5%, compared to the linked quarter, primarily due to a $4.3 million increase in total interest expense, partially offset by a $3.1 million increase in total interest income. Increases in interest rates drove a $7.0 million increase in total deposit interest expense, and higher average interest-bearing deposit balances drove another $2.1 million increase in total deposit interest expense, primarily due to higher average brokered and money market deposit balances. The increase in total deposit interest expense was partially offset by a $4.9 million decrease in total 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 average interest-earning assets drove a $5.4 million increase in total interest income, of which $4.7 million was due to higher interest rates on LHFI. The increase was partially offset by a $2.5 million decrease in interest income on interest-bearing balances due from banks due to lower average balances during the current quarter compared to the linked quarter.

    The net purchase accounting amortization totaled $38,000 for the three months ended September 30, 2023, a decrease of $568,000 from a net purchase accounting accretion of $530,000 for the three months ended June 30, 2023.

    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 through September 30, 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 September 30, 2023, the Federal Funds target rate range had increased 500 basis points from March 17, 2022, and in order to remain competitive as market interest rates increased, we increased interest rates paid on our deposits.

    The average rate on interest-bearing deposits increased to 3.47% for the quarter ended September 30, 2023, compared to 3.05% for the quarter ended June 30, 2023. The average interest-bearing deposit balances increased $235.5 million to $6.36 billion for the quarter ended September 30, 2023, from $6.12 billion for the linked quarter, of which $204.8 million and $78.5 million, respectively, were driven by higher average brokered and money market deposit balances. The average FHLB advances and other borrowings balance decreased to $230.8 million for the quarter ended September 30, 2023, compared to $606.1 million for the linked quarter, primarily due to the pay down of approximately $700.0 million in excess contingency liquidity during the linked quarter.

    The yield on LHFI was 6.35% and 6.18% for the quarter ended September 30, 2023, and June 30, 2023, respectively, and average LHFI balances increased $86.8 million to $7.56 billion for the quarter ended September 30, 2023, compared to $7.47 billion for the linked quarter. The higher yield on LHFI was primarily driven by a $1.4 million increase in interest income earned on commercial real estate loans supported by interest rate increases on the loans during the quarter ended September 30, 2023, compared to the linked quarter.

    The fully tax-equivalent net interest margin (“NIM”) was impacted by margin compression as rates on interest-bearing liabilities rose faster than yields on interest-earning assets during the last four quarters. The fully tax-equivalent NIM was 3.14% for the quarter ended September 30, 2023, representing a two and a 54 basis point decrease compared to the linked quarter and the prior year same quarter, respectively. The yield earned on interest-earning assets for the quarter ended September 30, 2023, was 5.69%, an increase of 19 and 146 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 September 30, 2023, was 3.59%, representing a 29 and a 220 basis point increase compared to the linked quarter and the prior year same quarter, respectively. There was a minimal impact to the fully tax-equivalent NIM as a result of accretion income due to the BT Holdings, Inc. (“BTH”) merger for the current quarter and a two basis points increase for the linked quarter.

    During the last few days of the quarter ended September 30, 2023, we made a strategic decision to sell available for sale investment securities with a book value of $181.9 million, and realized a loss of $7.2 million, in order to use the proceeds of $174.7 million to pay down FHLB advances. Due to the timing of this transaction, it had no impact on the fully tax-equivalent NIM for the quarter ended September 30, 2023. While the associated loss resulted in an $0.18 negative impact to diluted EPS for the quarter ended September 30, 2023, the difference between the relatively low yield on securities sold and the higher cost of FHLB advances was an attractive trade-off, with an estimated annualized positive forward impact to fully tax-equivalent NIM of 11 basis points, an estimated annualized forward diluted EPS benefit of approximately $0.11 and an estimated earn-back period of 1.7 years. The estimated metrics above use our annualized third quarter of 2023 net income, excluding non-operating items, plus the estimated annualized tax-effected net interest income using a weighted average tax-effected yield of 3.08% on the securities sold and an interest cost of 5.62% on the FHLB advances paid off.

    Credit Quality

    The table below includes key credit quality information:

     At and For the Three Months Ended Change % Change
    (Dollars in thousands, unaudited)September 30,
    2023    		 June 30,
    2023    		 September 30,
    2022    		 Linked
    Quarter    		 Linked
    Quarter
    Past due LHFI$20,347  $19,836  $10,866  $511  2.6%
    Allowance for Loan Credit Losses (“ALCL”) 95,177   94,353   83,359   824  0.9 
    Classified loans 64,021   84,298   69,781   (20,277) (24.1)
    Total nonperforming LHFI 31,608   33,609   14,031   (2,001) (6.0)
    Provision for credit losses 3,515   4,306   16,942   (791) (18.4)
    Net charge-offs 2,686   1,919   1,078   767  40.0 
    Credit quality ratios(1):         
    ALCL to nonperforming LHFI 301.12%  280.74%  594.11% 2038 bp N/A
    ALCL to total LHFI 1.26   1.24   1.21  2 bp N/A
    ALCL to total LHFI, adjusted(2) 1.30   1.32   1.29  -2 bp N/A
    Nonperforming LHFI to LHFI 0.42   0.44   0.20  -2 bp N/A
    Net charge-offs to total average LHFI (annualized) 0.14   0.10   0.07  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 warehouse loans from the total LHFI ALCL in the numerator and excluding the warehouse loans from the LHFI in the denominator. Due to their low-risk profile, mortgage warehouse loans require a disproportionately low allocation of the ALCL.


    We recorded a credit loss provision of $3.5 million during the quarter ended September 30, 2023, compared to $4.3 million recorded during the linked quarter. The decrease is primarily due to an improvement in classified and nonperforming loans during the quarter ended September 30, 2023, compared to June 30, 2023.

    The ALCL to nonperforming LHFI increased to 301.1% at September 30, 2023, compared to 280.7% at June 30, 2023, driven primarily by a decrease of $2.0 million in our nonperforming LHFI. Nonperforming LHFI to LHFI decreased over the past quarter to 0.42% compared to 0.44% for the linked quarter. Quarterly net charge-offs increased to $2.7 million from $1.9 million for the linked quarter, primarily due to an increase in commercial and industrial charge-offs combined with a decrease in commercial and industrial loan recoveries compared to the linked quarter.

    Classified loans decreased $20.3 million, or 24.1%, at September 30, 2023, compared to the linked quarter, and represented 0.85% of LHFI at September 30, 2023, compared to 1.11% at June 30, 2023. The decrease in classified loans was primarily due to payoffs and, to a lesser degree, upgrades in classified loans at September 30, 2023, compared to June 30, 2023.

    Noninterest Income

    Noninterest income for the quarter ended September 30, 2023, was $18.1 million, an increase of $2.5 million, or 15.9%, from the linked quarter. The increase from the linked quarter was primarily driven by a $10.5 million increase in other noninterest income, which was partially offset by a $7.2 million loss on sales of securities, a $656,000 decrease in limited partnership investment income and a $510,000 decrease in mortgage banking revenue.

    The increase in other noninterest income was primarily due to a $10.1 million positive valuation adjustment recorded on one of our non-marketable equity securities, which qualified for the practical expedient under which we carry these securities at cost adjusted for any observable transactions during the period, less any impairment. During the three months ended September 30, 2023, we observed multiple orderly transactions for identical equity securities indicating a price change had occurred and adjusted our basis upwards accordingly.

    The loss on sales of securities was due to the sale of available for sale investment securities with a current book value of $181.9 million, which realized a loss on sale of $7.2 million. We used the proceeds from the sale of $174.7 million to pay down FHLB advances. Please see the Net Interest Income and Net Interest Margin section above for more information on this transaction.

    The decrease in limited partnership investment income was mainly due to a $628,000 decrease in fair value of investments in one of our limited partnership funds during the current quarter.

    Noninterest Expense

    Noninterest expense for the quarter ended September 30, 2023, was $58.7 million, slightly decreased from the linked quarter by $224,000, or 0.4%. The decrease from the linked quarter was primarily due to a $377,000 decrease in franchise tax expense, offset by several immaterial changes in noninterest expense line items.

    Income Taxes

    The effective tax rate was 19.1% during the quarter ended September 30, 2023, compared to 21.5% during the linked quarter primarily due to a decrease in the estimated state tax compared to the linked quarter.

    Financial Condition

    Loans

    • Total LHFI at September 30, 2023, were $7.57 billion, a decrease of $54.6 million, or 0.7%, from $7.62 billion at June 30, 2023, and an increase of $685.4 million, or 10.0%, compared to September 30, 2022.
    • Mortgage warehouse lines of credit totaled $286.3 million at September 30, 2023, a decrease of $251.3 million, or 46.7%, compared to the linked quarter.
    • Total real estate loans were $5.20 billion at September 30, 2023, an increase of $116.8 million, or 2.3%, from the linked quarter, with construction/land/land development and residential real estate loan growth each contributing $54.5 million of the total real estate loan growth, respectively.
    • Total commercial and industrial loans were $2.06 billion at September 30, 2023, an increase of $81.0 million, or 4.1%, compared to the linked quarter.

    Securities

    • Total securities at September 30, 2023, were $1.31 billion, a decrease of $244.6 million, or 15.8%, compared to the linked quarter and a decrease of $381.4 million, or 22.6%, compared to September 30, 2022.
    • The decrease was primarily due to sales, maturities and calls, as well as normal principal payments. During the last few days of the quarter ended September 30, 2023, we made a strategic decision to sell available for sale investment securities with a book value of $181.9 million and realized a loss of $7.2 million, the proceeds of which were used to pay down FHLB advances.
    • Accumulated other comprehensive loss, net of taxes, primarily associated with the available for sale (“AFS”) portfolio, was $172.7 million at September 30, 2023, an increase of $19.9 million, or 13.0%, from the linked quarter.
    • The weighted average effective duration for the total securities portfolio was 4.49 years as of September 30, 2023, compared to 4.13 years as of June 30, 2023.

    Deposits

    • Total deposits at September 30, 2023, were $8.37 billion, a decrease of $115.6 million, or 1.4%, compared to the linked quarter, and represented an increase of $597.2 million, or 7.7%, from September 30, 2022.
    • The decrease in the current quarter compared to the linked quarter was primarily due to a decrease of $115.0 million in noninterest-bearing deposits. 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.
    • At September 30, 2023, noninterest-bearing deposits as a percentage of total deposits were 24.0%, compared to 25.0% and 34.3% at June 30, 2023, and September 30, 2022, respectively.
    • Uninsured/uncollateralized deposits totaled $2.75 billion at September 30, 2023, compared to $2.84 billion at June 30, 2023, representing 32.8% and 33.4% of total deposits at September 30, 2023, and June 30, 2023, respectively.

    Borrowings

    • FHLB advances and other borrowings at September 30, 2023, were $12.2 million, a decrease of $330.6 million, or 96.4%, compared to the linked quarter and represented a decrease of $438.2 million, or 97.3%, from September 30, 2022.
    • During the last few days of the quarter ended September 30, 2023, we made a strategic decision to sell available for sale investment securities to pay down FHLB advances.

    Stockholders’ Equity

    • Stockholders’ equity was $998.9 million at September 30, 2023, an increase of $1.1 million, or 0.1%, compared to $997.9 million at June 30, 2023, and an increase of $91.9 million, or 10.1%, compared to $907.0 million, at September 30, 2022.
    • The increase in stockholders’ equity from the linked quarter is primarily due to net income of $24.3 million, partially offset by an increase in accumulated other comprehensive loss, net of tax, of $19.9 million and dividends declared of $4.7 million during the current quarter.

    Conference Call

    Origin will hold a conference call to discuss its third quarter 2023 results on Thursday, October 26, 2023, at 8:00 a.m. Central Time (9:00 a.m. Eastern Time). To participate in the live conference call, please dial +1 (929) 272-1574 (U.S. Local / International 1); +1 (857) 999-3259 (U.S. Local / International 2); +1 (800) 528-1066 (U.S. Toll Free), enter Conference ID: 51465 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/ORIGINQ323.

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

    About Origin

    Origin Bancorp, Inc. is a financial holding company headquartered in Ruston, Louisiana. Origin’s wholly owned bank subsidiary, Origin Bank, was founded in 1912 in Choudrant, Louisiana. Deeply rooted in Origin’s history is a culture committed to providing personalized, relationship banking to businesses, municipalities, and personal clients to enrich the lives of the people in the communities it serves. Origin provides a broad range of financial services and currently operates 60 banking centers located in Dallas/Fort Worth, East Texas, Houston, North Louisiana and Mississippi. For more information, visit www.origin.bank.

    Non-GAAP Financial Measures

    Origin reports its results in accordance with generally accepted accounting principles in the United States of America ("GAAP"). However, management believes that certain supplemental non-GAAP financial measures may provide meaningful information to investors that is useful in understanding Origin's results of operations and underlying trends in its business. However, non-GAAP financial measures are supplemental and should be viewed in addition to, and not as an alternative for, Origin's reported results prepared in accordance with GAAP. The following are the non-GAAP measures used in this release: adjusted net income, adjusted PTPP earnings, adjusted diluted EPS, NIM-FTE, adjusted, adjusted ROAA, adjusted PTPP ROAA, adjusted ROAE, adjusted PTPP ROAE, tangible book value per common share, adjusted tangible book value per common share, tangible common equity to tangible assets, ROATCE, adjusted ROATCE and adjusted efficiency ratio.

    Please see the last few pages of this release for reconciliations of non-GAAP measures to the most directly comparable financial measures calculated in accordance with GAAP.

    Forward-Looking Statements

    This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include information regarding Origin’s future financial performance, business and growth strategies, projected plans and objectives, and any expected purchases of its outstanding common stock, and related transactions and other projections based on macroeconomic and industry trends, including changes to interest rates by the Federal Reserve and the resulting impact on Origin’s results of operations, estimated forbearance amounts and expectations regarding the Company’s liquidity, including in connection with advances obtained from the FHLB, which are all subject to change and may be inherently unreliable due to the multiple factors that impact broader economic and industry trends, and any such changes may be material. Such forward-looking statements are based on various facts and derived utilizing important assumptions and current expectations, estimates and projections about Origin and its subsidiaries, any of which may change over time and some of which may be beyond Origin’s control. Statements or statistics preceded by, followed by or that otherwise include the words “assumes,” “anticipates,” “believes,” “estimates,” “expects,” “foresees,” “intends,” “plans,” “projects,” and similar expressions or future or conditional verbs such as “could,” “may,” “might,” “should,” “will,” and “would” and variations of such terms are generally forward-looking in nature and not historical facts, although not all forward-looking statements include the foregoing words. Further, certain factors that could affect Origin’s future results and cause actual results to differ materially from those expressed in the forward-looking statements include, but are not limited to: potential impacts of adverse developments in the banking industry highlighted by high-profile bank failures, including impacts on customer confidence, deposit outflows, liquidity and the regulatory response thereto; the impact of current and future economic conditions generally and in the financial services industry, nationally and within Origin’s primary market areas, including the effects of declines in the real estate market, high unemployment rates, inflationary pressures, elevated interest rates and slowdowns in economic growth, as well as the financial stress on borrowers and changes to customer and client behavior as a result of the foregoing; deterioration of Origin’s asset quality; factors that can impact the performance of Origin’s loan portfolio, including real estate values and liquidity in Origin’s primary market areas; the financial health of Origin’s commercial borrowers and the success of construction projects that Origin finances; changes in the value of collateral securing Origin’s loans; developments in our mortgage banking business, including loan modifications, general demand, and the effects of judicial or regulatory requirements or guidance; Origin’s ability to anticipate interest rate changes and manage interest rate risk, (including the impact of higher interest rates on macroeconomic conditions, competition, and the cost of doing business); the effectiveness of Origin’s risk management framework and quantitative models; Origin’s inability to receive dividends from Origin Bank and to service debt, pay dividends to Origin’s common stockholders, repurchase Origin’s shares of common stock and satisfy obligations as they become due; the impact of labor pressures; changes in Origin’s operation or expansion strategy or Origin’s ability to prudently manage its growth and execute its strategy; changes in management personnel; Origin’s ability to maintain important customer relationships, reputation or otherwise avoid liquidity risks; increasing costs as Origin grows deposits; operational risks associated with Origin’s business; volatility and direction of market interest rates; significant turbulence or a disruption in the capital or financial markets and the effect of a fall in stock market prices on our investment securities; increased competition in the financial services industry, particularly from regional and national institutions, as well as from fintech companies; difficult market conditions and unfavorable economic trends in the United States generally, and particularly in the market areas in which Origin operates and in which its loans are concentrated; an increase in unemployment levels and slowdowns in economic growth; Origin’s level of nonperforming assets and the costs associated with resolving any problem loans including litigation and other costs; the credit risk associated with the substantial amount of commercial real estate, construction and land development, and commercial loans in Origin’s loan portfolio; changes in laws, rules, regulations, interpretations or policies relating to financial institutions, and potential expenses associated with complying with such regulations; periodic changes to the extensive body of accounting rules and best practices; further government intervention in the U.S. financial system; a deterioration of the credit rating for U.S. long-term sovereign debt or actions that the U.S. government may take to avoid exceeding the debt ceiling; compliance with governmental and regulatory requirements, including the Dodd-Frank Wall Street Reform and Consumer Protection Act and others relating to banking, consumer protection, securities, and tax matters; Origin’s ability to comply with applicable capital and liquidity requirements, including its ability to generate liquidity internally or raise capital on favorable terms, including continued access to the debt and equity capital markets; changes in the utility of Origin’s non-GAAP liquidity measurements and its underlying assumptions or estimates; uncertainty regarding the transition away from the London Interbank Offered Rate and the impact of any replacement alternatives such as the Secured Overnight Financing Rate on Origin’s business; possible changes in trade, monetary and fiscal policies, laws and regulations and other activities of governments, agencies and similar organizations; natural disasters and adverse weather events, acts of terrorism, an outbreak of hostilities (including the impacts related to or resulting from Russia's military action in Ukraine 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 Relations
    Chris Reigelman
    318-497-3177
    chris@origin.bank

    Media Contact
    Ryan Kilpatrick
    318-232-7472
    rkilpatrick@origin.bank

     
    Origin Bancorp, Inc.
    Selected Quarterly Financial Data
    (Unaudited)
     
     Three Months Ended
     September 30,
    2023    		 June 30,
    2023    		 March 31,
    2023    		 December 31,
    2022    		 September 30,
    2022
              
    Income statement and share amounts(Dollars in thousands, except per share amounts)
    Net interest income$74,130  $75,291  $77,147  $84,749  $78,523 
    Provision for credit losses 3,515   4,306   6,197   4,624   16,942 
    Noninterest income 18,119   15,636   16,384   13,429   13,723 
    Noninterest expense 58,663   58,887   56,760   57,254   56,241 
    Income before income tax expense 30,071   27,734   30,574   36,300   19,063 
    Income tax expense 5,758   5,974   6,272   6,822   2,820 
    Net income$24,313  $21,760  $24,302  $29,478  $16,243 
    Adjusted net income(1)$22,004  $21,388  $24,188  $30,409  $31,087 
    Adjusted PTPP earnings(1) 30,663   31,569   36,627   42,103   39,905 
    Basic earnings per common share 0.79   0.71   0.79   0.96   0.57 
    Diluted earnings per common share 0.79   0.70   0.79   0.95   0.57 
    Adjusted diluted earnings per common share(1) 0.71   0.69   0.78   0.99   1.09 
    Dividends declared per common share 0.15   0.15   0.15   0.15   0.15 
    Weighted average common shares outstanding - basic 30,856,649   30,791,397   30,742,902   30,674,389   28,298,984 
    Weighted average common shares outstanding - diluted 30,943,860   30,872,834   30,882,156   30,867,511   28,481,619 
              
    Balance sheet data         
    Total LHFI$7,568,063  $7,622,689  $7,375,823  $7,090,022  $6,882,681 
    Total assets 9,733,303   10,165,163   10,358,516   9,686,067   9,462,639 
    Total deposits 8,374,488   8,490,043   8,174,310   7,775,702   7,777,327 
    Total stockholders’ equity 998,945   997,859   992,587   949,943   907,024 
              
    Performance metrics and capital ratios         
    Yield on LHFI 6.35%  6.18%  6.03%  5.63%  4.94%
    Yield on interest-earnings assets 5.69   5.50   5.31   4.96   4.23 
    Cost of interest-bearing deposits 3.47   3.05   2.49   1.54   0.64 
    Cost of total deposits 2.61   2.26   1.75   1.02   0.41 
    NIM - fully tax equivalent ("FTE") 3.14   3.16   3.44   3.81   3.68 
    NIM - FTE, adjusted(2) 3.14   3.14   3.36   3.73   3.61 
    Return on average assets (annualized) ("ROAA") 0.96   0.86   1.01   1.23   0.70 
    Adjusted ROAA (annualized)(1) 0.87   0.84   1.00   1.27   1.34 
    Adjusted PTPP ROAA (annualized)(1) 1.21   1.24   1.52   1.75   1.72 
    Return on average stockholders’ equity (annualized) ("ROAE") 9.52   8.76   10.10   12.80   6.86 
    Adjusted ROAE (annualized)(1) 8.62   8.61   10.05   13.20   13.14 
    Adjusted PTPP ROAE (annualized)(1) 12.01   12.70   15.22   18.28   16.86 
    Book value per common share(3)$32.32  $32.33  $32.25  $30.90  $29.58 
    Tangible book value per common share (1)(3) 26.78   26.71   26.53   25.09   23.41 
    Adjusted tangible book value per common share(1) 32.37   31.66   31.03   30.29   29.13 
    Return on average tangible common equity (annualized) ("ROATCE")(1) 11.48%  10.62%  12.34%  16.00%  8.03%
    Adjusted return on average tangible common equity (annualized) ("adjusted ROATCE")(1) 10.39   10.44   12.29   16.50   15.38 
    Efficiency ratio(4) 63.59   64.76   60.69   58.32   60.97 
    Adjusted efficiency ratio(1) 62.71   61.17   58.64   53.06   52.16 
                        
        
    Common equity tier 1 to risk-weighted assets(5) 11.45%  11.01%  11.08%  10.93%  10.51%
    Tier 1 capital to risk-weighted assets(5) 11.63   11.19   11.27   11.12   10.70 
    Total capital to risk-weighted assets(5) 14.60   14.11   14.30   14.23   13.79 
    Tier 1 leverage ratio(5) 10.00   9.65   9.79   9.66   9.63 


    __________________________
    (1)Adjusted net income, adjusted PTPP earnings, adjusted diluted earnings per common share, adjusted ROAA, adjusted PTPP ROAA, adjusted ROAE, adjusted PTPP ROAE, tangible book value per common share, adjusted tangible book value per common share, ROATCE, adjusted ROATCE and adjusted efficiency ratio are either non-GAAP financial measures or use a non-GAAP contributor in the formula. For a reconciliation of these alternative financial measures to their comparable GAAP measures, please see the last few pages of this release.
    (2)NIM - FTE, adjusted, is a non-GAAP financial measure and is calculated by removing the net purchase accounting accretion from the net interest income.
    (3)An increase in accumulated other comprehensive loss negatively impacted total stockholders' equity, tangible common equity, book value and tangible book value per common share primarily due to the movement of the short end of the yield curve and its impact on our investment portfolio.
    (4)Calculated by dividing noninterest expense by the sum of net interest income plus noninterest income.
    (5)September 30, 2023, ratios are estimated and calculated at the Company level, which is subject to the capital adequacy requirements of the Federal Reserve Board.


     
    Origin Bancorp, Inc.
    Selected Year-to-Date Financial Data
    (Unaudited)
     
     Nine Months Ended September 30,
    (Dollars in thousands, except per share amounts) 2023   2022 
        
    Income statement and share amounts 
    Net interest income$226,568  $190,529 
    Provision for credit losses 14,018   20,067 
    Noninterest income 50,139   43,845 
    Noninterest expense 174,310   143,165 
    Income before income tax expense 88,379   71,142 
    Income tax expense 18,004   12,905 
    Net income$70,375  $58,237 
    Adjusted net income(1)$67,580  $74,170 
    Adjusted PTPP earnings(1) 98,859   96,487 
    Basic earnings per common share 2.29   2.31 
    Diluted earnings per common share 2.28   2.30 
    Adjusted diluted earnings per common share(1) 2.19   2.92 
    Dividends declared per common share 0.45   0.43 
    Weighted average common shares outstanding - basic 30,797,399   25,263,681 
    Weighted average common shares outstanding - diluted 30,903,222   25,366,807 
        
    Performance metrics   
    Yield on LHFI 6.19%  4.47%
    Yield on interest-earning assets 5.50   3.66 
    Cost of interest-bearing deposits 3.03   0.40 
    Cost of total deposits 2.22   0.27 
    NIM, FTE 3.24   3.28 
    NIM - FTE, adjusted(2) 3.21   3.25 
    ROAA 0.94   0.93 
    Adjusted ROAA(1) 0.90   1.18 
    Adjusted PTPP ROAA(1) 1.32   1.54 
    ROAE 9.45   10.02 
    Adjusted ROAE(1) 9.08   12.76 
    Adjusted PTPP ROAE(1) 13.28   16.60 
    ROATCE(1) 11.47   11.17 
    Adjusted ROATCE(1) 11.01   14.22 
    Efficiency ratio(3) 62.99   61.08 
    Adjusted efficiency ratio(1) 60.81   54.64 


    ____________________________
    (1)Adjusted net income, adjusted PTPP earnings, adjusted diluted earnings per common share, adjusted ROAA, adjusted PTPP ROAA, adjusted ROAE, adjusted PTPP ROAE, ROATCE, adjusted ROATCE and adjusted efficiency ratio are either non-GAAP financial measures or use a non-GAAP contributor in the formula. For a reconciliation of these alternative financial measures to their comparable GAAP measures, please see the last few pages of this release.
    (2)NIM - FTE, adjusted, is a non-GAAP financial measure and is calculated by removing the net purchase accounting accretion from the net interest income.
    (3)Calculated by dividing noninterest expense by the sum of net interest income plus noninterest income.

     

     
    Origin Bancorp, Inc.
    Consolidated Quarterly Statements of Income
    (Unaudited)
     
     Three Months Ended
     September 30,
    2023    		 June 30,
    2023    		 March 31,
    2023    		 December 31,
    2022    		 September 30,
    2022
              
    Interest and dividend income(Dollars in thousands, except per share amounts)
    Interest and fees on loans$121,204  $115,442  $106,496 $99,178  $79,803 
    Investment securities-taxable 8,194   8,303   8,161  7,765   7,801 
    Investment securities-nontaxable 1,281   1,283   1,410  2,128   2,151 
    Interest and dividend income on assets held in other financial institutions 4,772   7,286   4,074  2,225   1,482 
    Total interest and dividend income 135,451   132,314   120,141  111,296   91,237 
    Interest expense         
    Interest-bearing deposits 55,599   46,530   34,557  19,820   7,734 
    FHLB advances and other borrowings 3,207   7,951   5,880  4,208   2,717 
    Subordinated indebtedness 2,515   2,542   2,557  2,519   2,263 
    Total interest expense 61,321   57,023   42,994  26,547   12,714 
    Net interest income  74,130   75,291   77,147  84,749   78,523 
    Provision for credit losses 3,515   4,306   6,197  4,624   16,942 
    Net interest income after provision for credit losses 70,615   70,985   70,950  80,125   61,581 
    Noninterest income         
    Insurance commission and fee income 6,443   6,185   7,011  5,054   5,666 
    Service charges and fees 4,621   4,722   4,571  4,663   4,734 
    Mortgage banking revenue (loss) 892   1,402   1,781  1,201   (929)
    Other fee income 944   970   942  1,132   1,162 
    Swap fee income 366   331   384  292   25 
    (Loss) gain on sales of securities, net (7,173)  —   144  —   1,664 
    Limited partnership investment (loss) income (425)  231   66  (230)  112 
    Gain (loss) on sales and disposals of other assets, net 45   (111)  63  34   70 
    Other income 12,406   1,906   1,422  1,283   1,219 
    Total noninterest income 18,119   15,636   16,384  13,429   13,723 
    Noninterest expense         
    Salaries and employee benefits 34,624   34,533   33,731  33,339   31,834 
    Occupancy and equipment, net 6,790   6,578   6,503  5,863   5,399 
    Data processing 2,775   2,837   2,916  2,868   2,689 
    Intangible asset amortization 2,264   2,552   2,553  2,554   1,872 
    Office and operations 2,868   2,716   2,303  2,277   2,121 
    Professional services 1,409   1,557   1,525  1,145   1,188 
    Loan-related expenses 1,220   1,256   1,465  1,676   1,599 
    Advertising and marketing 1,371   1,469   1,456  1,505   1,196 
    Electronic banking 1,384   1,216   1,009  1,058   1,087 
    Franchise tax expense 520   897   975  1,017   957 
    Regulatory assessments 1,913   1,732   951  1,242   877 
    Communications 390   407   384  434   279 
    Merger-related expense —   —   —  1,179   3,614 
    Other expenses 1,135   1,137   989  1,097   1,529 
    Total noninterest expense 58,663   58,887   56,760  57,254   56,241 
    Income before income tax expense 30,071   27,734   30,574  36,300   19,063 
    Income tax expense 5,758   5,974   6,272  6,822   2,820 
    Net income$24,313  $21,760  $24,302 $29,478  $16,243 
    Basic earnings per common share$0.79  $0.71  $0.79 $0.96  $0.57 
    Diluted earnings per common share 0.79   0.70   0.79  0.95   0.57 


     
    Origin Bancorp, Inc.
    Consolidated Balance Sheets
    (Unaudited)
     
    (Dollars in thousands)September 30,
    2023    		 June 30,
    2023    		 March 31,
    2023    		 December 31,
    2022    		 September 30,
    2022
    Assets         
    Cash and due from banks$141,705  $127,576  $117,309  $150,180  $118,505 
    Interest-bearing deposits in banks 163,573   338,414   707,802   208,792   181,965 
    Total cash and cash equivalents 305,278   465,990   825,111   358,972   300,470 
    Securities:         
    AFS 1,290,839   1,535,702   1,591,334   1,641,484   1,672,170 
    Held to maturity, net of allowance for credit losses 10,790   11,234   11,191   11,275   11,285 
    Securities carried at fair value through income 6,772   6,106   6,413   6,368   6,347 
    Total securities 1,308,401   1,553,042   1,608,938   1,659,127   1,689,802 
    Non-marketable equity securities held in other financial institutions 63,842   58,446   77,036   67,378   53,899 
    Loans held for sale 14,944   15,198   29,143   49,957   59,714 
    Loans 7,568,063   7,622,689   7,375,823   7,090,022   6,882,681 
    Less: ALCL 95,177   94,353   92,008   87,161   83,359 
    Loans, net of ALCL 7,472,886   7,528,336   7,283,815   7,002,861   6,799,322 
    Premises and equipment, net 111,700   105,501   104,047   100,201   99,291 
    Mortgage servicing rights 19,189   19,086   18,261   20,824   21,654 
    Cash surrender value of bank-owned life insurance 39,688   39,467   39,253   39,040   38,885 
    Goodwill 128,679   128,679   128,679   128,679   136,793 
    Other intangible assets, net 42,460   44,724   47,277   49,829   52,384 
    Accrued interest receivable and other assets 226,236   206,694   196,956   209,199   210,425 
    Total assets$9,733,303  $10,165,163  $10,358,516  $9,686,067  $9,462,639 
    Liabilities and Stockholders’ Equity         
    Noninterest-bearing deposits$2,008,671  $2,123,699  $2,247,782  $2,482,475  $2,667,489 
    Interest-bearing deposits 4,728,263   4,738,460   4,779,023   4,505,940   4,361,423 
    Time deposits 1,637,554   1,627,884   1,147,505   787,287   748,415 
    Total deposits 8,374,488   8,490,043   8,174,310   7,775,702   7,777,327 
    FHLB advances and other borrowings 12,213   342,861   875,502   639,230   450,456 
    Subordinated indebtedness 196,825   196,746   201,845   201,765   201,687 
    Accrued expenses and other liabilities 150,832   137,654   114,272   119,427   126,145 
    Total liabilities 8,734,358   9,167,304   9,365,929   8,736,124   8,555,615 
    Stockholders’ equity:         
    Common stock 154,534   154,331   153,904   153,733   153,309 
    Additional paid-in capital 525,434   524,302   522,124   520,669   518,376 
    Retained earnings 491,706   472,105   455,040   435,416   410,572 
    Accumulated other comprehensive loss (172,729)  (152,879)  (138,481)  (159,875)  (175,233)
    Total stockholders’ equity 998,945   997,859   992,587   949,943   907,024 
    Total liabilities and stockholders’ equity$9,733,303  $10,165,163  $10,358,516  $9,686,067  $9,462,639 


     
    Origin Bancorp, Inc.
    Loan Data
    (Unaudited)
     
     At and For the Three Months Ended
     September 30,
    2023    		 June 30,
    2023    		 March 31,
    2023    		 December 31,
    2022    		 September 30,
    2022
              
    LHFI(Dollars in thousands)
    Owner occupied commercial real estate$932,109  $915,861  $855,887  $843,006  $800,981 
    Non-owner occupied commercial real estate 1,503,782   1,512,303   1,529,513   1,461,672   1,373,366 
    Owner occupied construction/land/land development 252,168   259,984   252,617   265,838   248,602 
    Non-owner occupied construction/land/land development 824,588   762,255   696,009   679,787   604,709 
    Residential real estate - single family 1,338,382   1,284,955   1,231,022   1,173,316   1,104,277 
    Residential real estate - multi-family 349,787   348,703   357,469   304,222   294,905 
    Total real estate loans 5,200,816   5,084,061   4,922,517   4,727,841   4,426,840 
    Commercial and industrial 2,058,073   1,977,028   2,091,093   2,051,161   1,967,037 
    Mortgage warehouse lines of credit 286,293   537,627   337,529   284,867   460,573 
    Consumer 22,881   23,973   24,684   26,153   28,231 
    Total LHFI 7,568,063   7,622,689   7,375,823   7,090,022   6,882,681 
    Less: allowance for loan credit losses ("ALCL") 95,177   94,353   92,008   87,161   83,359 
    LHFI, net$7,472,886  $7,528,336  $7,283,815  $7,002,861  $6,799,322 
              
    Nonperforming assets         
    Nonperforming LHFI         
    Commercial real estate$942  $3,510  $3,100  $526  $431 
    Construction/land/land development 235   183   226   270   366 
    Residential real estate 13,236   16,345   8,969   7,712   7,641 
    Commercial and industrial 17,072   13,480   4,730   1,383   5,134 
    Mortgage warehouse lines of credit —   —   —   —   385 
    Consumer 123   91   53   49   74 
    Total nonperforming LHFI 31,608   33,609   17,078   9,940   14,031 
    Nonperforming loans held for sale —   —   4,646   3,933   2,698 
    Total nonperforming loans 31,608   33,609   21,724   13,873   16,729 
    Repossessed assets 3,939   908   806   806   1,781 
    Total nonperforming assets$35,547  $34,517  $22,530  $14,679  $18,510 
    Classified assets$67,960  $85,206  $86,975  $75,009  $71,562 
    Past due LHFI(1) 20,347   19,836   11,498   10,932   10,866 
              
    Allowance for loan credit losses         
    Balance at beginning of period$94,353  $92,008  $87,161  $83,359  $63,123 
    Provision for loan credit losses 3,510   4,264   6,158   3,982   15,787 
    ALCL - BTH merger —   —   —   —   5,527 
    Loans charged off 3,202   2,751   2,293   2,537   1,628 
    Loan recoveries 516   832   982   2,357   550 
    Net charge-offs 2,686   1,919   1,311   180   1,078 
    Balance at end of period$95,177  $94,353  $92,008  $87,161  $83,359 
              
    Credit quality ratios 
    Total nonperforming assets to total assets 0.37%  0.34%  0.22%  0.15%  0.20%
    Total nonperforming loans to total loans 0.42   0.44   0.29   0.19   0.24 
    Nonperforming LHFI to LHFI 0.42   0.44   0.23   0.14   0.20 
    Past due LHFI to LHFI 0.27   0.26   0.16   0.15   0.16 
    ALCL to nonperforming LHFI 301.12   280.74   538.75   876.87   594.11 
    ALCL to total LHFI 1.26   1.24   1.25   1.23   1.21 
    ALCL to total LHFI, adjusted(2) 1.30   1.32   1.30   1.28   1.29 
    Net charge-offs to total average LHFI (annualized) 0.14   0.10   0.07   0.01   0.07 


    ____________________________
    (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 warehouse loans from the total LHFI ALCL in the numerator and excluding the warehouse loans from the LHFI in the denominator. Due to their low-risk profile, mortgage warehouse loans require a disproportionately low allocation of the ALCL.


     
    Origin Bancorp, Inc.
    Average Balances and Yields/Rates
    (Unaudited)
     
     Three Months Ended
     September 30, 2023 June 30, 2023 September 30, 2022
     Average Balance Yield/Rate Average Balance Yield/Rate Average Balance Yield/Rate
                
    Assets(Dollars in thousands)
    Commercial real estate$2,428,969 5.73% $2,406,625 5.56% $2,046,411 4.64%
    Construction/land/land development 1,044,180 7.04   972,032 6.70   760,682 5.20 
    Residential real estate 1,663,291 5.06   1,615,211 4.91   1,249,746 4.36 
    Commercial and industrial ("C&I") 2,024,675 7.62   2,059,285 7.59   1,816,912 5.64 
    Mortgage warehouse lines of credit 376,275 7.21   396,348 6.49   491,584 4.53 
    Consumer 23,704 7.74   24,812 7.26   24,137 6.80 
    LHFI 7,561,094 6.35   7,474,313 6.18   6,389,472 4.94 
    Loans held for sale 11,829 5.81   22,504 4.28   29,927 4.12 
    Loans receivable 7,572,923 6.35   7,496,817 6.18   6,419,399 4.93 
    Investment securities-taxable 1,310,459 2.48   1,371,361 2.43   1,547,848 2.00 
    Investment securities-nontaxable 216,700 2.35   220,345 2.33   317,175 2.69 
    Non-marketable equity securities held in other financial institutions 58,421 6.47   79,143 5.92   73,819 2.10 
    Interest-bearing balances due from banks 279,383 5.42   476,555 5.15   206,781 2.09 
    Total interest-earning assets 9,437,886 5.69   9,644,221 5.50   8,565,022 4.23 
    Noninterest-earning assets(1) 597,678    546,135    637,399  
    Total assets$10,035,564   $10,190,356   $9,202,421  
                
    Liabilities and Stockholders’ Equity          
    Liabilities           
    Interest-bearing liabilities           
    Savings and interest-bearing transaction accounts$4,728,211 3.28% $4,740,963 2.90% $4,157,092 0.66%
    Time deposits 1,626,935 4.04   1,378,659 3.56   669,900 0.51 
    Total interest-bearing deposits 6,355,146 3.47   6,119,622 3.05   4,826,992 0.64 
    FHLB advances and other borrowings 230,815 5.51   606,148 5.26   538,020 2.00 
    Subordinated indebtedness 196,792 5.07   200,160 5.09   186,803 4.81 
    Total interest-bearing liabilities 6,782,753 3.59   6,925,930 3.30   5,551,815 0.91 
    Noninterest-bearing liabilities           
    Noninterest-bearing deposits 2,088,183    2,139,973    2,582,500  
    Other liabilities(1) 151,716    127,630    129,354  
    Total liabilities 9,022,652    9,193,533    8,263,669  
    Stockholders’ Equity 1,012,912    996,823    938,752  
    Total liabilities and stockholders’ equity$10,035,564   $10,190,356   $9,202,421  
    Net interest spread  2.10%   2.20%   3.32%
    NIM  3.12    3.13    3.64 
    NIM - FTE(2)  3.14    3.16    3.68 
    NIM - FTE, adjusted(3)  3.14    3.14    3.61 


    ____________________________
    (1)Includes Government National Mortgage Association (“GNMA”) repurchase average balances of $29.1 million for the three months ended September 30, 2022. There were no GNMA average repurchase balances at either September 30, 2023, or June 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)NIM - FTE, adjusted, is calculated by removing the net purchase accounting accretion from the net interest income.

     

     
    Origin Bancorp, Inc.
    Non-GAAP Financial Measures
    (Unaudited)
     
     At and For the Three Months Ended
     September 30,
    2023    		 June 30,
    2023    		 March 31,
    2023    		 December 31,
    2022    		 September 30,
    2022
              
     (Dollars in thousands, except per share amounts)
    Calculation of adjusted net income:         
    Net interest income after provision for credit losses$70,615  $70,985  $70,950  $80,125  $61,581 
    Add: CECL provision for non-PCD loans —   —   —   —   14,890 
    Adjusted net interest income after provision for credit losses 70,615   70,985   70,950   80,125   76,471 
              
    Total noninterest income$18,119  $15,636  $16,384  $13,429  $13,723 
    Less: GNMA MSR impairment —   —   —   —   (1,950)
    Less: (loss) gain on sales of securities, net (7,173)  —   144   —   1,664 
    Less: gain on sub-debt repurchase —   471   —   —   — 
    Less: positive valuation adjustment on non-marketable equity securities 10,096   —   —   —   — 
    Adjusted total noninterest income 15,196   15,165   16,240   13,429   14,009 
              
    Total noninterest expense$58,663  $58,887  $56,760  $57,254  $56,241 
    Less: merger-related expenses —   —   —   1,179   3,614 
    Adjusted total noninterest expense 58,663   58,887   56,760   56,075   52,627 
              
    Income tax expense$5,758  $5,974  $6,272  $6,822  $2,820 
    Add: income tax expense on adjustment items (614)  (99)  (30)  248   3,946 
    Adjusted income tax expense 5,144   5,875   6,242   7,070   6,766 
              
    Net income$24,313  $21,760  $24,302  $29,478  $16,243 
    Adjusted net income$22,004  $21,388  $24,188  $30,409  $31,087 
              
    Calculation of adjusted PTPP earnings:         
    Provision for credit losses$3,515  $4,306  $6,197  $4,624  $16,942 
    Less: CECL provision for non-PCD loans —   —   —   —   14,890 
    Adjusted provision for credit losses$3,515  $4,306  $6,197  $4,624  $2,052 
              
    Adjusted net income$22,004  $21,388  $24,188  $30,409  $31,087 
    Add: adjusted provision for credit losses 3,515   4,306   6,197   4,624   2,052 
    Add: adjusted income tax expense 5,144   5,875   6,242   7,070   6,766 
    Adjusted PTPP Earnings$30,663  $31,569  $36,627  $42,103  $39,905 
    Calculation of adjusted dilutive EPS:         
    Numerator:         
    Adjusted net income$22,004  $21,388  $24,188  $30,409  $31,087 
    Denominator:         
    Weighted average diluted common shares outstanding 30,943,860   30,872,834   30,882,156   30,867,511   28,481,619 
              
    Diluted earnings per share$0.79  $0.70  $0.79  $0.95  $0.57 
    Adjusted diluted earnings per share 0.71   0.69   0.78   0.99   1.09 
              
    Calculation of adjusted ROAA and adjusted ROAE:        
    Adjusted net income$22,004  $21,388  $24,188  $30,409  $31,087 
    Divided by number of days in the quarter 92   91   90   92   92 
    Multiplied by number of days in the year 365   365   365   365   365 
    Annualized adjusted net income$87,298  $85,787  $98,096  $120,644  $123,334 
              
    Divided by total average assets 10,035,564   10,190,356   9,783,602   9,530,543   9,202,421 
    ROAA (annualized) 0.96%  0.86%  1.01%  1.23%  0.70%
    Adjusted ROAA (annualized) 0.87   0.84   1.00   1.27   1.34 
              
    Divided by total average stockholders' equity$1,012,912  $996,823  $976,044  $913,850  $938,752 
    ROAE (annualized) 9.52%  8.76%  10.10%  12.80%  6.86%
    Adjusted ROAE (annualized) 8.62   8.61   10.05   13.20   13.14 
              
    Calculation of adjusted PTPP ROAA and adjusted PTPP ROAE:      
    Adjusted PTPP earnings$30,663  $31,569  $36,627  $42,103  $39,905 
    Divided by number of days in the quarter 92   91   90   92   92 
    Multiplied by the number of days in the year 365   365   365   365   365 
    Adjusted PTPP earnings, annualized$121,652  $126,623  $148,543  $167,039  $158,319 
              
    Divided by total average assets$10,035,564  $10,190,356  $9,783,602  $9,530,543  $9,202,421 
    Adjusted PTPP ROAA(annualized) 1.21%  1.24%  1.52%  1.75%  1.72%
              
    Divided by total average stockholders' equity$1,012,912  $996,823  $976,044  $913,850  $938,752 
    Adjusted PTPP ROAE (annualized) 12.01%  12.70%  15.22%  18.28%  16.86%
    Calculation of tangible common equity to tangible common assets, book value per common share and adjusted tangible book value per common share:  
    Total assets$9,733,303  $10,165,163  $10,358,516  $9,686,067  $9,462,639 
    Less: goodwill 128,679   128,679   128,679   128,679   136,793 
    Less: other intangible assets, net 42,460   44,724   47,277   49,829   52,384 
    Tangible assets 9,562,164   9,991,760   10,182,560   9,507,559   9,273,462 
              
    Total common stockholders’ equity$998,945  $997,859  $992,587  $949,943  $907,024 
    Less: goodwill 128,679   128,679   128,679   128,679   136,793 
    Less: other intangible assets, net 42,460   44,724   47,277   49,829   52,384 
    Tangible common equity 827,806   824,456   816,631   771,435   717,847 
    Less: accumulated other comprehensive loss (172,729)  (152,879)  (138,481)  (159,875)  (175,233)
    Adjusted tangible common equity 1,000,535   977,335   955,112   931,310   893,080 
    Divided by common shares outstanding at the end of the period 30,906,716   30,866,205   30,780,853   30,746,600   30,661,734 
    Book value per common share$32.32  $32.33  $32.25  $30.90  $29.58 
    Tangible book value per common share 26.78   26.71   26.53   25.09   23.41 
    Adjusted tangible book value per common share 32.37   31.66   31.03   30.29   29.13 
    Tangible common equity to tangible assets 8.66%  8.25%  8.02%  8.11%  7.74%
              
    Calculation of ROATCE and adjusted ROATCE:        
    Net income$24,313  $21,760  $24,302  $29,478  $16,243 
    Divided by number of days in the quarter 92   91   90   92   92 
    Multiplied by number of days in the year 365   365   365   365   365 
    Annualized net income$96,459  $87,279  $98,558  $116,951  $64,442 
              
    Adjusted net income$22,004  $21,388  $24,188  $30,409  $31,087 
    Divided by number of days in the quarter 92   91   90   92   92 
    Multiplied by number of days in the year 365   365   365   365   365 
    Annualized adjusted net income$87,298  $85,787  $98,096  $120,644  $123,334 
              
    Total average common stockholders’ equity$1,012,912  $996,823  $976,044  $913,850  $938,752 
    Less: average goodwill 128,679   128,679   128,679   131,302   95,696 
    Less: average other intangible assets, net 43,901   46,379   48,950   51,495   40,918 
    Average tangible common equity 840,332   821,765   798,415   731,053   802,138 
              
    ROATCE 11.48%  10.62%  12.34%  16.00%  8.03%
    Adjusted ROATCE 10.39   10.44   12.29   16.50   15.38 
    Calculation of adjusted efficiency ratio:         
    Total noninterest expense$58,663  $58,887  $56,760  $57,254  $56,241 
    Less: insurance and mortgage noninterest expense 8,579   9,156   8,033   8,031   8,479 
    Less: merger-related expenses —   —   —   1,179   3,614 
    Adjusted total noninterest expense 50,084   49,731   48,727   48,044   44,148 
              
    Net interest income$74,130  $75,291  $77,147  $84,749  $78,523 
    Less: insurance and mortgage net interest income 2,120   1,574   1,493   1,376   1,208 
    Add: Total noninterest income 18,119   15,636   16,384   13,429   13,723 
    Less: insurance and mortgage noninterest income 7,335   7,587   8,792   6,255   4,737 
    Less: positive valuation adjustment on non-marketable equity securities 10,096   —   —   —   — 
    Less: (loss) gain on sale of securities, net (7,173)  —   144   —   1,664 
    Less: gain on sub-debt repurchase —   471   —   —   — 
    Adjusted total revenue 79,871   81,295   83,102   90,547   84,637 
              
    Efficiency ratio 63.59%  64.76%  60.69%  58.32%  60.97%
    Adjusted efficiency ratio 62.71   61.17   58.64   53.06   52.16 


     
    Origin Bancorp, Inc.
    Non-GAAP Financial Measures - Continued
    (Unaudited)
     
     Nine Months Ended September 30,
      2023   2022 
        
     (Dollars in thousands, except per share amounts)
    Calculation of adjusted net income:   
    Net interest income after provision for credit losses$212,550  $170,462 
    Add: CECL provision for non-PCD loans —   14,890 
    Adjusted net interest income after provision for credit losses 212,550   185,352 
        
    Total noninterest income$50,139  $43,845 
    Less: GNMA MSR impairment —   (1,950)
    Less: (loss) gain on sales of securities, net (7,029)  1,664 
    Less: gain on sub-debt repurchase 471   — 
    Less: positive valuation adjustment on non-marketable equity securities 10,096   — 
    Adjusted total noninterest income 46,601   44,131 
        
    Total noninterest expense$174,310  $143,165 
    Less: merger-related expense —   4,992 
    Adjusted total noninterest expense 174,310   138,173 
        
    Income tax expense$18,004  $12,905 
    Add: income tax expense on adjustment items (743)  4,235 
    Adjusted income tax expense 17,261   17,140 
        
    Net Income$70,375  $58,237 
    Adjusted net income$67,580  $74,170 
        
    Calculation of adjusted PTPP earnings:   
    Provision for credit losses$14,018  $20,067 
    Less: CECL provision for non-PCD loans —   14,890 
    Adjusted provision for credit losses$14,018  $5,177 
        
    Adjusted net income$67,580  $74,170 
    Add: provision for credit losses 14,018   5,177 
    Add: adjusted income tax expense 17,261   17,140 
    Adjusted PTPP earnings$98,859  $96,487 
        
    Calculation of adjusted dilutive EPS:   
    Numerator:   
    Adjusted net income$67,580  $74,170 
    Denominator:   
    Weighted average diluted common shares outstanding 30,903,222   25,366,807 
    Diluted earnings per share$2.28  $2.30 
    Adjusted diluted earnings per share 2.19   2.92 
    Calculation of adjusted ROAA and adjusted ROAE:    
    Adjusted net income$67,580  $74,170 
    Divided by the year-to-date number of days 273   273 
    Multiplied by number of days in the year 365   365 
    Annualized adjusted net income$90,354  $99,165 
        
    Divided by total average assets$10,004,097  $8,401,701 
    ROAA (annualized) 0.94%  0.93%
    Adjusted ROAA (annualized) 0.90   1.18 
        
    Divided by total average stockholders' equity$995,395  $776,985 
    ROAE (annualized) 9.45%  10.02%
    Adjusted ROAE (annualized) 9.08   12.76 
        
    Calculation of adjusted PTPP ROAA and adjusted PTPP ROAE:   
    Adjusted PTPP Earnings$98,859  $96,487 
    Divided by the year-to-date number of days 273   273 
    Multiplied by number of days in the year 365   365 
    Annualized adjusted PTPP Earnings$132,174  $129,003 
        
    Divided by total average assets$10,004,097  $8,401,701 
    Adjusted PTPP ROAA (annualized) 1.32%  1.54%
        
    Divided by total average stockholders' equity$995,395  $776,985 
    Adjusted PTPP ROAE (annualized) 13.28%  16.60%
    Calculation of ROATCE and adjusted ROATCE:  
    Net income$70,375  $58,237 
    Divided by the year-to-date number of days 273   273 
    Multiplied by number of days in the year 365   365 
    Annualized net income$94,091  $77,863 
        
    Adjusted net income$67,580  $74,170 
    Divided by the year-to-date number of days 273   273 
    Multiplied by number of days in the year 365   365 
    Annualized adjusted net income$90,354  $99,165 
        
    Total average common stockholders’ equity$995,395  $776,985 
    Less: average goodwill 128,679   54,963 
    Less: average other intangible assets, net 46,391   24,733 
    Average tangible common equity 820,325   697,289 
        
    ROATCE 11.47%  11.17%
    Adjusted ROATCE 11.01   14.22 
        
    Calculation of adjusted efficiency ratio:    
    Total noninterest expense$174,310  $143,165 
    Less: insurance and mortgage noninterest expense 25,768   25,502 
    Less: merger-related expenses —   4,992 
    Adjusted total noninterest expense 148,542   112,671 
        
    Net interest income$226,568  $190,529 
    Less: insurance and mortgage net interest income 5,187   3,165 
    Add: total noninterest income 50,139   43,845 
    Less: insurance and mortgage noninterest income 23,714   23,336 
    Less: (loss) gain on sales of securities, net (7,029)  1,664 
    Less: gain on sub-debt repurchase 471   — 
    Less: positive valuation adjustment on non-marketable equity securities 10,096   — 
    Adjusted total revenue 244,268   206,209 
        
    Efficiency ratio 62.99%  61.08%
    Adjusted efficiency ratio 60.81   54.64 

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