Origin Bancorp, Inc. Reports Earnings for Second Quarter 2024
Origin Bancorp, Inc. (NYSE: OBK) reported net income of $21.0 million, or $0.67 diluted earnings per share for Q2 2024, compared to $22.6 million, or $0.73 per share in Q1 2024. Key highlights include:
- Total loans held for investment increased by 0.7% to $7.96 billion
- Total deposits grew slightly by 0.1% to $8.51 billion
- Noninterest income rose 30.2% to $22.5 million, a record high
- Book value per share increased 1.3% to $35.23
- Common equity Tier 1 capital ratio improved to 12.15%
The company faced challenges related to questioned activity involving a single banker in East Texas, resulting in increased nonperforming loans and credit loss provisions. Despite this, Origin maintained strong capital ratios and saw growth in key areas.
Origin Bancorp, Inc. (NYSE: OBK) ha riportato un reddito netto di $21,0 milioni, ovvero $0,67 di utile per azione diluito per il secondo trimestre del 2024, rispetto a $22,6 milioni, o $0,73 per azione nel primo trimestre del 2024. Le principali evidenze includono:
- I prestiti totali detenuti per investimenti sono aumentati dello 0,7% a $7,96 miliardi
- I depositi totali sono cresciuti leggermente dello 0,1% a $8,51 miliardi
- Il reddito non da interessi è aumentato del 30,2% a $22,5 milioni, un record storico
- Il valore contabile per azione è aumentato dell'1,3% a $35,23
- Il rapporto di capitale comune Tier 1 è migliorato a 12,15%
La società ha affrontato sfide legate a un'attività controversa coinvolgente un singolo bancario in East Texas, che ha portato a un incremento dei prestiti non performanti e delle riserve per perdite su crediti. Nonostante ciò, Origin ha mantenuto solidi rapporti di capitale e ha visto una crescita in settori chiave.
Origin Bancorp, Inc. (NYSE: OBK) reportó un ingreso neto de $21.0 millones, o $0.67 de ganancias por acción diluida para el segundo trimestre de 2024, en comparación con $22.6 millones, o $0.73 por acción en el primer trimestre de 2024. Los puntos destacados incluyen:
- Los préstamos totales mantenidos para inversión aumentaron un 0.7% a $7.96 mil millones
- Los depósitos totales crecieron ligeramente un 0.1% a $8.51 mil millones
- Los ingresos no por intereses aumentaron un 30.2% a $22.5 millones, un récord histórico
- El valor contable por acción aumentó un 1.3% a $35.23
- El ratio de capital común Tier 1 mejoró a 12.15%
La empresa enfrentó desafíos relacionados con actividades cuestionadas que involucraban a un solo banquero en East Texas, lo que resultó en un incremento de préstamos no productivos y provisiones para pérdidas crediticias. A pesar de esto, Origin mantuvo sólidos ratios de capital y presenció un crecimiento en áreas clave.
Origin Bancorp, Inc. (뉴욕증권거래소: OBK)는 2024년 2분기에 2100만 달러의 순익, 즉 희석 주당 순이익 $0.67을 보고했으며, 이는 2024년 1분기 2260만 달러 또는 주당 $0.73에 비해 감소한 수치입니다. 주요 사항은 다음과 같습니다:
- 투자용으로 보유한 총 대출이 0.7% 증가하여 79억 6천만 달러에 달했습니다.
- 총 예금이 약간 0.1% 증가하여 85억 1천만 달러에 달했습니다.
- 비이자 수익이 30.2% 증가하여 2250만 달러로 사상 최고치를 기록했습니다.
- 주당 장부 가치가 1.3% 증가하여 35.23 달러에 달했습니다.
- 보통주 기본 Tier 1 자본 비율이 12.15%로 개선되었습니다.
회사는 동부 텍사스의 한 은행가와 관련된 부정적인 활동으로 인해 어려움에 직면했으며, 이로 인해 비수익 대출과 신용 손실 충당금이 증가했습니다. 그럼에도 불구하고 Origin은 강력한 자본 비율을 유지하며 주요 분야에서 성장을 보았습니다.
Origin Bancorp, Inc. (NYSE: OBK) a annoncé un revenu net de 21,0 millions de dollars, soit 0,67 dollar de bénéfice par action dilué pour le deuxième trimestre 2024, contre 22,6 millions de dollars, ou 0,73 dollar par action au premier trimestre 2024. Les principaux faits saillants comprennent :
- Le total des prêts détenus pour investissement a augmenté de 0,7 % pour atteindre 7,96 milliards de dollars
- Les dépôts totaux ont légèrement augmenté de 0,1 % pour atteindre 8,51 milliards de dollars
- Les revenus hors intérêts ont augmenté de 30,2 % pour atteindre 22,5 millions de dollars, un niveau record
- La valeur comptable par action a augmenté de 1,3 % pour atteindre 35,23 dollars
- Le ratio de capital de base commun Tier 1 s'est amélioré à 12,15 %
La société a rencontré des défis en raison d'activités contestées impliquant un seul banquier au Texas de l'Est, entraînant une augmentation des prêts non performants et des provisions pour pertes sur créances. Malgré cela, Origin a maintenu des ratios de capital solides et a connu une croissance dans des domaines clés.
Origin Bancorp, Inc. (NYSE: OBK) berichtete über ein Nettoeinkommen von 21,0 Millionen Dollar, beziehungsweise 0,67 Dollar verwässertes Ergebnis pro Aktie für das 2. Quartal 2024, im Vergleich zu 22,6 Millionen Dollar oder 0,73 Dollar pro Aktie im 1. Quartal 2024. Zentrale Highlights sind:
- Die insgesamt für Investitionen gehaltenen Kredite stiegen um 0,7% auf 7,96 Milliarden Dollar
- Die gesamten Einlagen wuchsen leicht um 0,1% auf 8,51 Milliarden Dollar
- Die Nettogewinne stiegen um 30,2% auf 22,5 Millionen Dollar, was einen Rekord darstellt
- Der Buchwert pro Aktie stieg um 1,3% auf 35,23 Dollar
- Das Verhältnis des harten Kernkapitals Tier 1 verbesserte sich auf 12,15%
Das Unternehmen sah sich Herausforderungen aufgrund fragwürdiger Aktivitäten eines einzelnen Bankangestellten in Osttexas gegenüber, was zu einem Anstieg nicht leistungsfähiger Kredite und Rückstellungen für Kreditverluste führte. Trotz dieser Umstände konnte Origin starke Kapitalquoten aufrechterhalten und Wachstum in wichtigen Bereichen verzeichnen.
- Total loans held for investment increased by 0.7% to $7.96 billion
- Noninterest income rose 30.2% to $22.5 million, reaching a record high
- Book value per share increased 1.3% to $35.23
- Common equity Tier 1 capital ratio improved to 12.15%
- Mortgage warehouse lines of credit increased by 26.3% to $506.5 million
- Net income decreased from $22.6 million in Q1 2024 to $21.0 million in Q2 2024
- Diluted earnings per share dropped from $0.73 in Q1 2024 to $0.67 in Q2 2024
- Nonperforming loans increased by $35.4 million, primarily due to questioned activity in East Texas
- Credit loss provision increased to $5.2 million from $3.0 million in the previous quarter
- Net interest margin (NIM-FTE) decreased by two basis points compared to the linked quarter
Insights
Origin Bancorp's Q2 2024 results present a mixed picture with some positive developments and areas of concern. Net income decreased to
On the positive side, total loans held for investment (LHFI) increased by
However, there are notable concerns. The bank identified questionable activity involving a single banker in the East Texas market, leading to an increase in nonperforming loans and classified loans. Nonperforming LHFI increased by
The bank's net interest margin (NIM) faced compression, decreasing by 2 basis points compared to the linked quarter. This was partly due to the reversal of accrued interest related to the questioned activity. Without this impact, the NIM would have shown a slight improvement.
Overall, while Origin Bancorp maintains solid capital ratios and shows growth in certain areas, the issues related to the questioned activity in East Texas and the ongoing pressure on net interest margin warrant close attention from investors.
The recent developments at Origin Bancorp highlight significant risk management challenges that require immediate attention. The discovery of questionable activity involving a single banker in the East Texas market is particularly concerning, as it has led to material financial and reputational impacts.
Key risk indicators have deteriorated:
- Nonperforming LHFI ratio increased to
0.95% from0.51% - Classified loans increased by
$34.0 million to$118.3 million - Provision for credit losses increased to
$5.2 million from$3.0 million
These metrics suggest a potential weakening in the bank's overall credit quality, which could lead to increased regulatory scrutiny and higher capital requirements if not addressed promptly.
The bank's response to the situation appears proactive, including termination of the involved banker, ongoing investigation and engagement with affected customers. However, the fact that one relationship has resulted in a lawsuit against the bank indicates potential for legal and reputational risks.
The recognition of
While management asserts that any ultimate loss from this situation will not be material to the bank's financial position, the indirect effects on customer relationships, regulatory standing and market perception could be significant. The bank should prioritize strengthening its risk management framework, particularly in areas of loan origination, monitoring and employee oversight.
Origin Bancorp's Q2 2024 results reflect the challenging operating environment for regional banks, characterized by margin pressures and evolving credit dynamics. Despite these headwinds, the bank has shown resilience in certain areas.
Deposit stability is a positive sign, with total deposits increasing slightly by
The growth in loans held for investment, up
The bank's net interest margin (NIM) compression is a concern, reflecting the industry-wide challenge of rising funding costs outpacing asset yield increases. The reported NIM of
The increase in noninterest income, particularly the
In conclusion, while Origin Bancorp faces challenges common to the industry, its core banking operations show resilience. The key focus areas for the bank should be managing credit quality, particularly in light of the recent issues in East Texas, optimizing its deposit mix and finding sustainable sources of non-interest income to offset margin pressures.
RUSTON, La., July 24, 2024 (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
“I am pleased with the performance of the Company and extremely proud of our bankers who continue to build and expand relationships throughout our dynamic markets,” said Drake Mills, chairman, president and CEO of Origin Bancorp, Inc. “I have a great deal of confidence in our team and our ability to deliver long-term value to our employees, customers, communities and shareholders.”
(1) PTPP earnings is a non-GAAP financial measure, please see the last few pages of this document for a reconciliation of this alternative financial measure to its comparable GAAP measure.
Financial Highlights
- Total loans held for investment (“LHFI”) were
$7.96 billion at June 30, 2024, reflecting an increase of$59.1 million , or0.7% , compared to March 31, 2024. Mortgage warehouse lines of credit (“MW LOC”) were$506.5 million at June 30, 2024, reflecting an increase of$105.5 million , or26.3% , compared to March 31, 2024. - Total deposits were
$8.51 billion at June 30, 2024, reflecting an increase of$5.4 million , or0.1% , compared to March 31, 2024. - Noninterest income was
$22.5 million for the quarter ended June 30, 2024, reflecting an increase of$5.2 million , or30.2% , compared to the linked quarter, and was at the highest level in our history since we became a publicly traded Company in 2018. - Our book value per common share was
$35.23 as of June 30, 2024, reflecting an increase of$0.44 , or1.3% , compared to March 31, 2024. Tangible book value per common share(1) was$29.77 at June 30, 2024, reflecting an increase of$0.53 , or1.8% , compared to March 31, 2024. - Stockholders’ equity was
$1.10 billion at June 30, 2024, reflecting an increase of$17.0 million , or1.6% , compared to March 31, 2024. - At June 30, 2024, and March 31, 2024, Company level common equity Tier 1 capital to risk-weighted assets was
12.15% , and11.97% , respectively, the Tier 1 leverage ratio was10.70% and10.66% , respectively, and the total capital ratio was15.16% and14.98% , respectively. Tangible common equity to tangible assets(1) was9.47% at June 30, 2024, compared to9.33% at March 31, 2024.
(1) Tangible book value per common share and tangible common equity to tangible assets are non-GAAP financial measures. Please see the last few pages of this document for a reconciliation of these alternative financial measures to their comparable GAAP measures.
Results of Operations for the Three Months Ended June 30, 2024
Net Interest Income and Net Interest Margin
Net interest income for the quarter ended June 30, 2024, was
Net increases in average LHFI principal balances drove interest income higher by
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. The federal funds target rate range was last changed on July 26, 2023, to
Recently, we identified certain questioned activity involving a single banker in our East Texas market. The activity involved the banker, who has since been terminated, facilitating advances in and among certain customer loans and accounts that, in one or more instances, may not have been appropriately documented. In an effort to quantify the full extent of the activity, we have been working with our customers impacted by the activity in order to identify the amounts that may be owed to us, as well as the amounts that may be owed by us. During the quarter, several of the relationships impacted by the activity were placed on non-accrual, resulting in a reversal of
The NIM-FTE was
Credit Quality
The table below includes key credit quality information:
At and For the Three Months Ended | Change | % Change | |||||||||||||||||
(Dollars in thousands, unaudited) | June 30, 2024 | March 31, 2024 | June 30, 2023 | Linked Quarter | Linked Quarter | ||||||||||||||
Past due LHFI | $ | 66,276 | $ | 32,835 | $ | 19,836 | $ | 33,441 | 101.8 | % | |||||||||
Allowance for loan credit losses (“ALCL”) | 100,865 | 98,375 | 94,353 | 2,490 | 2.5 | ||||||||||||||
Classified loans | 118,254 | 84,217 | 84,298 | 34,037 | 40.4 | ||||||||||||||
Total nonperforming LHFI | 75,812 | 40,439 | 33,609 | 35,373 | 87.5 | ||||||||||||||
Provision for credit losses | 5,231 | 3,012 | 4,306 | 2,219 | 73.7 | ||||||||||||||
Net charge-offs | 2,946 | 2,582 | 1,919 | 364 | 14.1 | ||||||||||||||
Credit quality ratios(1): | |||||||||||||||||||
ALCL to nonperforming LHFI | 133.05 | % | 243.27 | % | 280.74 | % | -11022 bp | N/A | |||||||||||
ALCL to total LHFI | 1.27 | 1.25 | 1.24 | 2 bp | N/A | ||||||||||||||
ALCL to total LHFI, adjusted(2) | 1.34 | 1.30 | 1.32 | 4 bp | N/A | ||||||||||||||
Nonperforming LHFI to LHFI | 0.95 | 0.51 | 0.44 | 44 bp | N/A | ||||||||||||||
Net charge-offs to total average LHFI (annualized) | 0.15 | 0.13 | 0.10 | 2 bp | N/A |
___________________________
(1) Please see the Loan Data schedule at the back of this document for additional information.
(2) The ALCL to total LHFI, adjusted, is calculated by excluding the ALCL for MW LOC loans from the total LHFI ALCL in the numerator and excluding the MW LOC loans from the LHFI in the denominator. Due to their low-risk profile, MW LOC loans require a disproportionately low allocation of the ALCL.
While we continue to experience normalization of our credit metrics within our loan portfolio, the primary increases in our past dues, level of classified, and nonperforming loans for the current quarter resulted from certain questioned activity involving a single banker in our East Texas market. As mentioned previously, in an effort to quantify the full extent of the activity, we have been working with our impacted customers in order to identify the amounts that may be owed to us, as well as the amounts that may be owed by us. One of the relationships impacted by this activity filed a lawsuit against the bank. While this relationship has chosen to file a lawsuit, other relationships have continued to work with us, with certain relationships acknowledging amounts owed and either paying the amounts in full or entering into short-term agreements for repayment. Additionally, we have notified our insurance providers of anticipated claims resulting from this activity, but there is no consideration in this quarter’s financial results of any potential insurance recoveries. Our investigation remains ongoing, and we are also working with an outside forensic accounting firm to confirm the bank’s identification and reconciliation of the activity. At this time, we believe that any ultimate loss arising from the situation will not be material to our financial position.
Nonperforming LHFI increased
We recorded a credit loss provision of
The ALCL to nonperforming LHFI decreased to
Noninterest Income
Noninterest income for the quarter ended June 30, 2024, was
The increase in change in fair value of equity investments was primarily due to a
The increase in other income was primarily due to an increase of
The decrease in insurance commission and fee income was primarily driven by an increase in annual contingency fee income recognized during the linked quarter, primarily due to the seasonality of the portfolio. Looking at a year over year quarterly change, insurance commission and fee income increased
Noninterest Expense
Noninterest expense for the quarter ended June 30, 2024, was
The increase in salaries and employee benefits was mainly driven by increases of
The increase in other noninterest expense resulted from recognizing contingent liabilities totaling approximately
Financial Condition
Loans
- Total LHFI at June 30, 2024, were
$7.96 billion , an increase of$59.1 million , or0.7% , from$7.90 billion at March 31, 2024, and an increase of$336.5 million , or4.4% , compared to June 30, 2023. - The increase was primarily due to growth in MW LOC and commercial real estate loans of
$105.5 million and$102.2 million , respectively, partially offset by decline in construction/land/land development of$151.2 million compared to the linked quarter.
Securities
- Total securities at June 30, 2024, were
$1.18 billion , a decrease of$31.2 million , or2.6% , compared to the linked quarter and a decrease of$374.9 million , or24.1% , compared to June 30, 2023. - The decrease was primarily due to maturities and calls, as well as normal principal repayments.
- Accumulated other comprehensive loss, net of taxes, primarily associated with the available for sale (“AFS”) portfolio, was
$127.2 million at June 30, 2024, an increase of$2.3 million , or1.8% , from the linked quarter. - The weighted average effective duration for the total securities portfolio was 4.28 years as of June 30, 2024, compared to 4.34 years as of March 31, 2024.
Deposits
- Total deposits at June 30, 2024, were
$8.51 billion , an increase of$5.4 million , or0.1% , compared to the linked quarter, and represented an increase of$20.8 million , or0.2% , from June 30, 2023. - The increase in the current quarter compared to the linked quarter was primarily due to increases of
$39.7 million and$2.6 million in brokered (which includes both brokered time and brokered interest-bearing demand) deposits and saving deposits, respectively. These increases were partially offset by decreases of$20.4 million ,$8.3 million and$8.1 million in noninterest-bearing demand deposits, interest-bearing demand deposits and time deposits, respectively. We saw a continuation of the declining trend in noninterest-bearing deposit balances that began in the fourth quarter of 2022, although at a slower pace than prior periods, as rates paid on deposit balances typically lag market interest rates and have continued to rise, while market interest rates have stabilized. - At June 30, 2024, noninterest-bearing deposits as a percentage of total deposits were
21.9% , compared to22.2% and25.0% at March 31, 2024, and June 30, 2023, respectively.
Borrowings
- FHLB advances and other borrowings at June 30, 2024, were
$40.7 million , an increase of$27.6 million , or209.6% , compared to the linked quarter and represented a decrease of$302.1 million , or88.1% , from June 30, 2023. - Total debt (representing FHLB advances and other borrowings plus subordinated debt) was
$200.5 million at June 30, 2024, and represented an increase of$26.7 million , or15.3% , compared to the linked quarter due to an increase in FHLB advances during the current quarter.
Stockholders’ Equity
- Stockholders’ equity was
$1.10 billion at June 30, 2024, an increase of$17.0 million , or1.6% , compared to$1.08 billion at March 31, 2024, and an increase of$98.0 million , or9.8% , compared to June 30, 2023. - The increase in stockholders’ equity from the linked quarter is primarily due to net income of
$21.0 million , partially offset by dividends declared of$4.7 million during the current quarter.
Conference Call
Origin will hold a conference call to discuss its second quarter 2024 results on Thursday, July 25, 2024, at 8:00 a.m. Central Time (9:00 a.m. Eastern Time). To participate in the live conference call, please dial +1 (929) 272-1574 (U.S. Local / International 1); +1 (857) 999-3259 (U.S. Local / International 2); +1 (800) 528-1066 (U.S. Toll Free), enter Conference ID: 09209 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/ORIGINQ224.
If you are unable to participate during the live webcast, the webcast will be archived on the Investor Relations section of Origin’s website at www.origin.bank, under Investor Relations, News & Events, Events & Presentations.
About Origin
Origin Bancorp, Inc. is a financial holding company headquartered in Ruston, Louisiana. Origin’s wholly owned bank subsidiary, Origin Bank, was founded in 1912 in Choudrant, Louisiana. Deeply rooted in Origin’s history is a culture committed to providing personalized, relationship banking to businesses, municipalities, and personal clients to enrich the lives of the people in the communities it serves. Origin provides a broad range of financial services and currently has over 60 locations from Dallas/Fort Worth, East Texas and Houston, across North Louisiana and into Mississippi. Locations in South Alabama and the Florida Panhandle are planned for 2024. 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: PTPP earnings, adjusted NIM-FTE, PTPP ROAA, tangible book value per common share, adjusted tangible book value per common share, tangible common equity to tangible assets, ROATCE, and core efficiency ratio.
Please see the last few pages of this release for reconciliations of non-GAAP measures to the most directly comparable financial measures calculated in accordance with GAAP.
Forward-Looking Statements
This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include information regarding Origin’s future financial performance, business and growth strategies, projected plans and objectives, and any expected purchases of its outstanding common stock, and related transactions and other projections based on macroeconomic and industry trends, including changes to interest rates by the Federal Reserve and the resulting impact on Origin’s results of operations, estimated forbearance amounts and expectations regarding the Company’s liquidity, including in connection with advances obtained from the FHLB, which are all subject to change and may be inherently unreliable due to the multiple factors that impact broader economic and industry trends, and any such changes may be material. Such forward-looking statements are based on various facts and derived utilizing important assumptions and current expectations, estimates and projections about Origin and its subsidiaries, any of which may change over time and some of which may be beyond Origin’s control. Statements or statistics preceded by, followed by or that otherwise include the words “assumes,” “anticipates,” “believes,” “estimates,” “expects,” “foresees,” “intends,” “plans,” “projects,” and similar expressions or future or conditional verbs such as “could,” “may,” “might,” “should,” “will,” and “would” and variations of such terms are generally forward-looking in nature and not historical facts, although not all forward-looking statements include the foregoing words. Further, certain factors that could affect Origin’s future results and cause actual results to differ materially from those expressed in the forward-looking statements include, but are not limited to: potential impacts of adverse developments in the banking industry highlighted by high-profile bank failures, including impacts on customer confidence, deposit outflows, liquidity and the regulatory response thereto; the impact of current and future economic conditions generally and in the financial services industry, nationally and within Origin’s primary market areas, including the effects of declines in the real estate market, high unemployment rates, inflationary pressures, elevated interest rates and slowdowns in economic growth, as well as the financial stress on borrowers and changes to customer and client behavior as a result of the foregoing; potential reductions in benchmark interest rates and the resulting impacts on net interest income; deterioration of Origin’s asset quality; factors that can impact the performance of Origin’s loan portfolio, including real estate values and liquidity in Origin’s primary market areas; the financial health of Origin’s commercial borrowers and the success of construction projects that Origin finances; changes in the value of collateral securing Origin’s loans; developments in our mortgage banking business, including loan modifications, general demand, and the effects of judicial or regulatory requirements or guidance; Origin’s ability to anticipate interest rate changes and manage interest rate risk, (including the impact of higher interest rates on macroeconomic conditions, competition, and the cost of doing business and the impact of prolonged elevated interest rates on our financial projections, models and guidance); 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; 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; Origin’s level of nonperforming assets and the costs associated with resolving any problem loans including litigation and other costs; the credit risk associated with the substantial amount of commercial real estate, construction and land development, and commercial loans in Origin’s loan portfolio; changes in laws, rules, regulations, interpretations or policies relating to financial institutions, and potential expenses associated with complying with such regulations; periodic changes to the extensive body of accounting rules and best practices; further government intervention in the U.S. financial system; a deterioration of the credit rating for U.S. long-term sovereign debt or actions that the U.S. government may take to avoid exceeding the debt ceiling; a potential U.S. federal government shutdown and the resulting impacts; compliance with governmental and regulatory requirements, including the Dodd-Frank Wall Street Reform and Consumer Protection Act and others relating to banking, consumer protection, securities, and tax matters; Origin’s ability to comply with applicable capital and liquidity requirements, including its ability to generate liquidity internally or raise capital on favorable terms, including continued access to the debt and equity capital markets; changes in the utility of Origin’s non-GAAP liquidity measurements and its underlying assumptions or estimates; possible changes in trade, monetary and fiscal policies, laws and regulations and other activities of governments, agencies and similar organizations; natural disasters and adverse weather events, acts of terrorism, an outbreak of hostilities (including the impacts related to or resulting from Russia's military action in Ukraine or the conflict in Israel and surrounding areas, including the imposition of additional sanctions and export controls, as well as the broader impacts to financial markets and the global macroeconomic and geopolitical environments), regional or national protests and civil unrest (including any resulting branch closures or property damage), widespread illness or public health outbreaks or other international or domestic calamities, and other matters beyond Origin’s control; the impact of generative artificial intelligence; fraud or misconduct by internal or external actors (including Origin employees) which Origin may not be able to prevent, detect or mitigate, system failures, cybersecurity threats or security breaches and the cost of defending against them; Origin’s ability to maintain adequate internal controls over financial and non-financial reporting; and potential claims, damages, penalties, fines, costs and reputational damage resulting from pending or future litigation, regulatory proceedings and enforcement actions. 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 | |||||||||||||||||||
June 30, 2024 | March 31, 2024 | December 31, 2023 | September 30, 2023 | June 30, 2023 | |||||||||||||||
Income statement and share amounts | (Dollars in thousands, except per share amounts) | ||||||||||||||||||
Net interest income | $ | 73,890 | $ | 73,323 | $ | 72,989 | $ | 74,130 | $ | 75,291 | |||||||||
Provision for credit losses | 5,231 | 3,012 | 2,735 | 3,515 | 4,306 | ||||||||||||||
Noninterest income | 22,465 | 17,255 | 8,196 | 18,119 | 15,636 | ||||||||||||||
Noninterest expense | 64,388 | 58,707 | 60,906 | 58,663 | 58,887 | ||||||||||||||
Income before income tax expense | 26,736 | 28,859 | 17,544 | 30,071 | 27,734 | ||||||||||||||
Income tax expense | 5,747 | 6,227 | 4,119 | 5,758 | 5,974 | ||||||||||||||
Net income | $ | 20,989 | $ | 22,632 | $ | 13,425 | $ | 24,313 | $ | 21,760 | |||||||||
PTPP earnings(1) | 31,967 | 31,871 | 20,279 | 33,586 | 32,040 | ||||||||||||||
Basic earnings per common share | 0.68 | 0.73 | 0.43 | 0.79 | 0.71 | ||||||||||||||
Diluted earnings per common share | 0.67 | 0.73 | 0.43 | 0.79 | 0.70 | ||||||||||||||
Dividends declared per common share | 0.15 | 0.15 | 0.15 | 0.15 | 0.15 | ||||||||||||||
Weighted average common shares outstanding - basic | 31,042,527 | 30,981,333 | 30,898,941 | 30,856,649 | 30,791,397 | ||||||||||||||
Weighted average common shares outstanding - diluted | 31,131,829 | 31,078,910 | 30,995,354 | 30,943,860 | 30,872,834 | ||||||||||||||
Balance sheet data | |||||||||||||||||||
Total LHFI | $ | 7,959,171 | $ | 7,900,027 | $ | 7,660,944 | $ | 7,568,063 | $ | 7,622,689 | |||||||||
Total LHFI excluding MW LOC | 7,452,666 | 7,499,032 | 7,330,978 | 7,281,770 | 7,085,062 | ||||||||||||||
Total assets | 9,947,182 | 9,892,379 | 9,722,584 | 9,733,303 | 10,165,163 | ||||||||||||||
Total deposits | 8,510,842 | 8,505,464 | 8,251,125 | 8,374,488 | 8,490,043 | ||||||||||||||
Total stockholders’ equity | 1,095,894 | 1,078,853 | 1,062,905 | 998,945 | 997,859 | ||||||||||||||
Performance metrics and capital ratios | |||||||||||||||||||
Yield on LHFI | 6.58 | % | 6.58 | % | 6.46 | % | 6.35 | % | 6.18 | % | |||||||||
Yield on interest-earnings assets | 6.04 | 5.99 | 5.86 | 5.69 | 5.50 | ||||||||||||||
Cost of interest-bearing deposits | 3.95 | 3.85 | 3.71 | 3.47 | 3.05 | ||||||||||||||
Cost of total deposits | 3.08 | 2.99 | 2.84 | 2.61 | 2.26 | ||||||||||||||
NIM - fully tax equivalent ("FTE") | 3.17 | 3.19 | 3.19 | 3.14 | 3.16 | ||||||||||||||
Adjusted NIM-FTE(2) | 3.17 | 3.19 | 3.19 | 3.14 | 3.14 | ||||||||||||||
Return on average assets (annualized) ("ROAA") | 0.84 | 0.92 | 0.55 | 0.96 | 0.86 | ||||||||||||||
PTPP ROAA (annualized)(1) | 1.28 | 1.30 | 0.82 | 1.33 | 1.26 | ||||||||||||||
Return on average stockholders’ equity (annualized) ("ROAE") | 7.79 | 8.57 | 5.26 | 9.52 | 8.76 | ||||||||||||||
Book value per common share | $ | 35.23 | $ | 34.79 | $ | 34.30 | $ | 32.32 | $ | 32.33 | |||||||||
Tangible book value per common share(1) | 29.77 | 29.24 | 28.68 | 26.78 | 26.71 | ||||||||||||||
Adjusted tangible book value per common share(1) | 33.86 | 33.27 | 32.59 | 32.37 | 31.66 | ||||||||||||||
Return on average tangible common equity (annualized) ("ROATCE")(1) | 9.25 | % | 10.24 | % | 6.36 | % | 11.48 | % | 10.62 | % | |||||||||
Efficiency ratio(3) | 66.82 | 64.81 | 75.02 | 63.59 | 64.76 | ||||||||||||||
Core efficiency ratio(1) | 65.55 | 65.24 | 70.55 | 60.49 | 60.82 | ||||||||||||||
Common equity tier 1 to risk-weighted assets(4) | 12.15 | 11.97 | 11.83 | 11.46 | 11.01 | ||||||||||||||
Tier 1 capital to risk-weighted assets(4) | 12.33 | 12.15 | 12.01 | 11.64 | 11.19 | ||||||||||||||
Total capital to risk-weighted assets(4) | 15.16 | 14.98 | 15.02 | 14.61 | 14.11 | ||||||||||||||
Tier 1 leverage ratio(4) | 10.70 | 10.66 | 10.50 | 10.00 | 9.65 |
__________________________
(1) PTPP earnings, PTPP ROAA, tangible book value per common share, adjusted tangible book value per common share, ROATCE, and core efficiency ratio are either non-GAAP financial measures or use a non-GAAP contributor in the formula. For a reconciliation of these alternative financial measures to their comparable GAAP measures, please see the last few pages of this release.
(2) Adjusted NIM-FTE is a non-GAAP financial measure and is calculated by removing the
(3) Calculated by dividing noninterest expense by the sum of net interest income plus noninterest income.
(4) June 30, 2024, ratios are estimated and calculated at the Company level, which is subject to the capital adequacy requirements of the Federal Reserve Board.
Origin Bancorp, Inc. Selected Year-To-Date Financial Data (Unaudited) | |||||||
Six Months Ended June 30, | |||||||
(Dollars in thousands, except per share amounts) | 2024 | 2023 | |||||
Income statement and share amounts | |||||||
Net interest income | $ | 147,213 | $ | 152,438 | |||
Provision for credit losses | 8,243 | 10,503 | |||||
Noninterest income | 39,720 | 32,020 | |||||
Noninterest expense | 123,095 | 115,647 | |||||
Income before income tax expense | 55,595 | 58,308 | |||||
Income tax expense | 11,974 | 12,246 | |||||
Net income | $ | 43,621 | $ | 46,062 | |||
PTPP earnings(1) | 63,838 | 68,811 | |||||
Basic earnings per common share | 1.41 | 1.50 | |||||
Diluted earnings per common share | 1.40 | 1.49 | |||||
Dividends declared per common share | 0.30 | 0.30 | |||||
Weighted average common shares outstanding - basic | 31,011,930 | 30,767,283 | |||||
Weighted average common shares outstanding - diluted | 31,110,747 | 30,881,072 | |||||
Performance metrics | |||||||
Yield on LHFI | 6.58 | % | 6.11 | % | |||
Yield on interest-earning assets | 6.01 | 5.41 | |||||
Cost of interest-bearing deposits | 3.90 | 2.78 | |||||
Cost of total deposits | 3.04 | 2.01 | |||||
NIM, FTE | 3.18 | 3.29 | |||||
Adjusted NIM-FTE(2) | 3.18 | 3.25 | |||||
ROAA (annualized) | 0.88 | 0.93 | |||||
PTPP ROAA (annualized)(1) | 1.29 | 1.39 | |||||
ROAE (annualized) | 8.17 | 9.42 | |||||
ROATCE (annualized)(1) | 9.73 | 11.47 | |||||
Efficiency ratio(3) | 65.85 | 62.70 | |||||
Core efficiency ratio(1) | 65.40 | 59.67 |
____________________________
(1) PTPP earnings, PTPP ROAA, ROATCE, and core efficiency ratio are either non-GAAP financial measures or use a non-GAAP contributor in the formula. For a reconciliation of these alternative financial measures to their comparable GAAP measures, please see the last few pages of this release.
(2) Adjusted NIM-FTE is a non-GAAP financial measure and is calculated for six months ended June 30, 2024, by removing the
(3) Calculated by dividing noninterest expense by the sum of net interest income plus noninterest income.
Origin Bancorp, Inc. Consolidated Quarterly Statements of Income (Unaudited) | |||||||||||||||||||
Three Months Ended | |||||||||||||||||||
June 30, 2024 | March 31, 2024 | December 31, 2023 | September 30, 2023 | June 30, 2023 | |||||||||||||||
Interest and dividend income | (Dollars in thousands, except per share amounts) | ||||||||||||||||||
Interest and fees on loans | $ | 129,879 | $ | 127,186 | $ | 123,673 | $ | 121,204 | $ | 115,442 | |||||||||
Investment securities-taxable | 6,606 | 6,849 | 7,024 | 8,194 | 8,303 | ||||||||||||||
Investment securities-nontaxable | 893 | 910 | 1,124 | 1,281 | 1,283 | ||||||||||||||
Interest and dividend income on assets held in other financial institutions | 4,416 | 3,756 | 3,664 | 4,772 | 7,286 | ||||||||||||||
Total interest and dividend income | 141,794 | 138,701 | 135,485 | 135,451 | 132,314 | ||||||||||||||
Interest expense | |||||||||||||||||||
Interest-bearing deposits | 65,469 | 62,842 | 59,771 | 55,599 | 46,530 | ||||||||||||||
FHLB advances and other borrowings | 514 | 518 | 220 | 3,207 | 7,951 | ||||||||||||||
Subordinated indebtedness | 1,921 | 2,018 | 2,505 | 2,515 | 2,542 | ||||||||||||||
Total interest expense | 67,904 | 65,378 | 62,496 | 61,321 | 57,023 | ||||||||||||||
Net interest income | 73,890 | 73,323 | 72,989 | 74,130 | 75,291 | ||||||||||||||
Provision for credit losses | 5,231 | 3,012 | 2,735 | 3,515 | 4,306 | ||||||||||||||
Net interest income after provision for credit losses | 68,659 | 70,311 | 70,254 | 70,615 | 70,985 | ||||||||||||||
Noninterest income | |||||||||||||||||||
Insurance commission and fee income | 6,665 | 7,725 | 5,446 | 6,443 | 6,185 | ||||||||||||||
Service charges and fees | 4,862 | 4,688 | 4,889 | 4,621 | 4,722 | ||||||||||||||
Other fee income | 2,404 | 2,247 | 2,118 | 2,006 | 1,990 | ||||||||||||||
Mortgage banking revenue (loss) | 1,878 | 2,398 | (719 | ) | 892 | 1,402 | |||||||||||||
Swap fee income | 44 | 57 | 196 | 366 | 331 | ||||||||||||||
(Loss) on sales of securities, net | — | (403 | ) | (4,606 | ) | (7,173 | ) | — | |||||||||||
Change in fair value of equity investments | 5,188 | — | — | 10,096 | — | ||||||||||||||
Other income | 1,424 | 543 | 872 | 868 | 1,006 | ||||||||||||||
Total noninterest income | 22,465 | 17,255 | 8,196 | 18,119 | 15,636 | ||||||||||||||
Noninterest expense | |||||||||||||||||||
Salaries and employee benefits | 38,109 | 35,818 | 35,931 | 34,624 | 34,533 | ||||||||||||||
Occupancy and equipment, net | 7,009 | 6,645 | 6,912 | 6,790 | 6,578 | ||||||||||||||
Data processing | 3,468 | 3,145 | 3,062 | 2,775 | 2,837 | ||||||||||||||
Office and operations | 3,072 | 2,502 | 2,947 | 2,868 | 2,716 | ||||||||||||||
Intangible asset amortization | 2,137 | 2,137 | 2,259 | 2,264 | 2,552 | ||||||||||||||
Regulatory assessments | 1,842 | 1,734 | 1,860 | 1,913 | 1,732 | ||||||||||||||
Advertising and marketing | 1,328 | 1,444 | 1,690 | 1,371 | 1,469 | ||||||||||||||
Professional services | 1,303 | 1,231 | 1,440 | 1,409 | 1,557 | ||||||||||||||
Loan-related expenses | 1,077 | 905 | 1,094 | 1,220 | 1,256 | ||||||||||||||
Electronic banking | 1,238 | 1,239 | 1,103 | 1,384 | 1,216 | ||||||||||||||
Franchise tax expense | 815 | 477 | 942 | 520 | 897 | ||||||||||||||
Other expenses | 2,990 | 1,430 | 1,666 | 1,525 | 1,544 | ||||||||||||||
Total noninterest expense | 64,388 | 58,707 | 60,906 | 58,663 | 58,887 | ||||||||||||||
Income before income tax expense | 26,736 | 28,859 | 17,544 | 30,071 | 27,734 | ||||||||||||||
Income tax expense | 5,747 | 6,227 | 4,119 | 5,758 | 5,974 | ||||||||||||||
Net income | $ | 20,989 | $ | 22,632 | $ | 13,425 | $ | 24,313 | $ | 21,760 | |||||||||
Basic earnings per common share | $ | 0.68 | $ | 0.73 | $ | 0.43 | $ | 0.79 | $ | 0.71 | |||||||||
Diluted earnings per common share | 0.67 | 0.73 | 0.43 | 0.79 | 0.70 |
Origin Bancorp, Inc. Consolidated Balance Sheets (Unaudited) | |||||||||||||||||||
(Dollars in thousands) | June 30, 2024 | March 31, 2024 | December 31, 2023 | September 30, 2023 | June 30, 2023 | ||||||||||||||
Assets | |||||||||||||||||||
Cash and due from banks | $ | 137,615 | $ | 98,147 | $ | 127,278 | $ | 141,705 | $ | 127,576 | |||||||||
Interest-bearing deposits in banks | 150,435 | 193,365 | 153,163 | 163,573 | 338,414 | ||||||||||||||
Total cash and cash equivalents | 288,050 | 291,512 | 280,441 | 305,278 | 465,990 | ||||||||||||||
Securities: | |||||||||||||||||||
AFS | 1,160,048 | 1,190,922 | 1,253,631 | 1,290,839 | 1,535,702 | ||||||||||||||
Held to maturity, net of allowance for credit losses | 11,616 | 11,651 | 11,615 | 10,790 | 11,234 | ||||||||||||||
Securities carried at fair value through income | 6,499 | 6,755 | 6,808 | 6,772 | 6,106 | ||||||||||||||
Total securities | 1,178,163 | 1,209,328 | 1,272,054 | 1,308,401 | 1,553,042 | ||||||||||||||
Non-marketable equity securities held in other financial institutions | 64,010 | 53,870 | 55,190 | 63,842 | 58,446 | ||||||||||||||
Loans held for sale | 18,291 | 14,975 | 16,852 | 14,944 | 15,198 | ||||||||||||||
Loans | 7,959,171 | 7,900,027 | 7,660,944 | 7,568,063 | 7,622,689 | ||||||||||||||
Less: ALCL | 100,865 | 98,375 | 96,868 | 95,177 | 94,353 | ||||||||||||||
Loans, net of ALCL | 7,858,306 | 7,801,652 | 7,564,076 | 7,472,886 | 7,528,336 | ||||||||||||||
Premises and equipment, net | 121,562 | 120,931 | 118,978 | 111,700 | 105,501 | ||||||||||||||
Mortgage servicing rights | — | — | 15,637 | 19,189 | 19,086 | ||||||||||||||
Cash surrender value of bank-owned life insurance | 40,365 | 40,134 | 39,905 | 39,688 | 39,467 | ||||||||||||||
Goodwill | 128,679 | 128,679 | 128,679 | 128,679 | 128,679 | ||||||||||||||
Other intangible assets, net | 41,177 | 43,314 | 45,452 | 42,460 | 44,724 | ||||||||||||||
Accrued interest receivable and other assets | 208,579 | 187,984 | 185,320 | 226,236 | 206,694 | ||||||||||||||
Total assets | $ | 9,947,182 | $ | 9,892,379 | $ | 9,722,584 | $ | 9,733,303 | $ | 10,165,163 | |||||||||
Liabilities and Stockholders’ Equity | |||||||||||||||||||
Noninterest-bearing deposits | $ | 1,866,622 | $ | 1,887,066 | $ | 1,919,638 | $ | 2,008,671 | $ | 2,123,699 | |||||||||
Interest-bearing deposits excluding brokered interest-bearing deposits | 4,984,817 | 4,990,632 | 4,918,597 | 4,728,263 | 4,738,460 | ||||||||||||||
Time deposits | 1,022,589 | 1,030,656 | 967,901 | 968,352 | 949,975 | ||||||||||||||
Brokered deposits | 636,814 | 597,110 | 444,989 | 669,202 | 677,909 | ||||||||||||||
Total deposits | 8,510,842 | 8,505,464 | 8,251,125 | 8,374,488 | 8,490,043 | ||||||||||||||
FHLB advances and other borrowings | 40,737 | 13,158 | 83,598 | 12,213 | 342,861 | ||||||||||||||
Subordinated indebtedness | 159,779 | 160,684 | 194,279 | 196,825 | 196,746 | ||||||||||||||
Accrued expenses and other liabilities | 139,930 | 134,220 | 130,677 | 150,832 | 137,654 | ||||||||||||||
Total liabilities | 8,851,288 | 8,813,526 | 8,659,679 | 8,734,358 | 9,167,304 | ||||||||||||||
Stockholders’ equity: | |||||||||||||||||||
Common stock | 155,543 | 155,057 | 154,931 | 154,534 | 154,331 | ||||||||||||||
Additional paid-in capital | 532,950 | 530,380 | 528,578 | 525,434 | 524,302 | ||||||||||||||
Retained earnings | 534,585 | 518,325 | 500,419 | 491,706 | 472,105 | ||||||||||||||
Accumulated other comprehensive loss | (127,184 | ) | (124,909 | ) | (121,023 | ) | (172,729 | ) | (152,879 | ) | |||||||||
Total stockholders’ equity | 1,095,894 | 1,078,853 | 1,062,905 | 998,945 | 997,859 | ||||||||||||||
Total liabilities and stockholders’ equity | $ | 9,947,182 | $ | 9,892,379 | $ | 9,722,584 | $ | 9,733,303 | $ | 10,165,163 |
Origin Bancorp, Inc. Loan Data (Unaudited) | |||||||||||||||||||
At and For the Three Months Ended | |||||||||||||||||||
June 30, 2024 | March 31, 2024 | December 31, 2023 | September 30, 2023 | June 30, 2023 | |||||||||||||||
LHFI | (Dollars in thousands) | ||||||||||||||||||
Owner occupied commercial real estate | $ | 959,850 | $ | 948,624 | $ | 953,822 | $ | 932,109 | $ | 915,861 | |||||||||
Non-owner occupied commercial real estate | 1,563,152 | 1,472,164 | 1,488,912 | 1,503,782 | 1,512,303 | ||||||||||||||
Construction/land/land development | 1,017,389 | 1,168,597 | 1,070,225 | 1,076,756 | 1,022,239 | ||||||||||||||
Residential real estate - single family | 1,421,027 | 1,373,532 | 1,373,696 | 1,338,382 | 1,284,955 | ||||||||||||||
Multi-family real estate | 398,202 | 359,765 | 361,239 | 349,787 | 348,703 | ||||||||||||||
Total real estate loans | 5,359,620 | 5,322,682 | 5,247,894 | 5,200,816 | 5,084,061 | ||||||||||||||
Commercial and industrial | 2,070,947 | 2,154,151 | 2,059,460 | 2,058,073 | 1,977,028 | ||||||||||||||
MW LOC | 506,505 | 400,995 | 329,966 | 286,293 | 537,627 | ||||||||||||||
Consumer | 22,099 | 22,199 | 23,624 | 22,881 | 23,973 | ||||||||||||||
Total LHFI | 7,959,171 | 7,900,027 | 7,660,944 | 7,568,063 | 7,622,689 | ||||||||||||||
Less: ALCL | 100,865 | 98,375 | 96,868 | 95,177 | 94,353 | ||||||||||||||
LHFI, net | $ | 7,858,306 | $ | 7,801,652 | $ | 7,564,076 | $ | 7,472,886 | $ | 7,528,336 | |||||||||
Nonperforming assets | |||||||||||||||||||
Nonperforming LHFI | |||||||||||||||||||
Commercial real estate | $ | 2,196 | $ | 4,474 | $ | 786 | $ | 942 | $ | 3,510 | |||||||||
Construction/land/land development | 26,336 | 383 | 305 | 235 | 183 | ||||||||||||||
Residential real estate(1) | 13,493 | 14,918 | 13,037 | 13,236 | 16,345 | ||||||||||||||
Commercial and industrial | 33,608 | 20,560 | 15,897 | 17,072 | 13,480 | ||||||||||||||
MW LOC | — | — | — | — | — | ||||||||||||||
Consumer | 179 | 104 | 90 | 123 | 91 | ||||||||||||||
Total nonperforming LHFI | 75,812 | 40,439 | 30,115 | 31,608 | 33,609 | ||||||||||||||
Nonperforming loans held for sale | — | — | — | — | — | ||||||||||||||
Total nonperforming loans | 75,812 | 40,439 | 30,115 | 31,608 | 33,609 | ||||||||||||||
Repossessed assets | 6,827 | 3,935 | 3,929 | 3,939 | 908 | ||||||||||||||
Total nonperforming assets | $ | 82,639 | $ | 44,374 | $ | 34,044 | $ | 35,547 | $ | 34,517 | |||||||||
Classified assets | $ | 125,081 | $ | 88,152 | $ | 84,474 | $ | 67,960 | $ | 85,206 | |||||||||
Past due LHFI(2) | 66,276 | 32,835 | 26,043 | 20,347 | 19,836 | ||||||||||||||
Allowance for loan credit losses | |||||||||||||||||||
Balance at beginning of period | $ | 98,375 | $ | 96,868 | $ | 95,177 | $ | 94,353 | $ | 92,008 | |||||||||
Provision for loan credit losses | 5,436 | 4,089 | 3,582 | 3,510 | 4,264 | ||||||||||||||
Loans charged off | 3,706 | 6,683 | 3,803 | 3,202 | 2,751 | ||||||||||||||
Loan recoveries | 760 | 4,101 | 1,912 | 516 | 832 | ||||||||||||||
Net charge-offs | 2,946 | 2,582 | 1,891 | 2,686 | 1,919 | ||||||||||||||
Balance at end of period | $ | 100,865 | $ | 98,375 | $ | 96,868 | $ | 95,177 | $ | 94,353 | |||||||||
Credit quality ratios | |||||||||||||||||||
Total nonperforming assets to total assets | 0.83 | % | 0.45 | % | 0.35 | % | 0.37 | % | 0.34 | % | |||||||||
Total nonperforming loans to total loans | 0.95 | 0.51 | 0.39 | 0.42 | 0.44 | ||||||||||||||
Nonperforming LHFI to LHFI | 0.95 | 0.51 | 0.39 | 0.42 | 0.44 | ||||||||||||||
Past due LHFI to LHFI | 0.83 | 0.42 | 0.34 | 0.27 | 0.26 | ||||||||||||||
ALCL to nonperforming LHFI | 133.05 | 243.27 | 321.66 | 301.12 | 280.74 | ||||||||||||||
ALCL to total LHFI | 1.27 | 1.25 | 1.26 | 1.26 | 1.24 | ||||||||||||||
ALCL to total LHFI, adjusted(3) | 1.34 | 1.30 | 1.31 | 1.30 | 1.32 | ||||||||||||||
Net charge-offs to total average LHFI (annualized) | 0.15 | 0.13 | 0.10 | 0.14 | 0.10 |
____________________________
(1) Includes multi-family real estate.
(2) Past due LHFI are defined as loans 30 days or more past due.
(3) The ALCL to total LHFI, adjusted is calculated by excluding the ALCL for MW LOC loans from the total LHFI ALCL in the numerator and excluding the MW LOC loans from the LHFI in the denominator. Due to their low-risk profile, MW LOC loans require a disproportionately low allocation of the ALCL.
Origin Bancorp, Inc. Average Balances and Yields/Rates (Unaudited) | |||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||
June 30, 2024 | March 31, 2024 | June 30, 2023 | |||||||||||||||||||||
Average Balance | Yield/Rate | Average Balance | Yield/Rate | Average Balance | Yield/Rate | ||||||||||||||||||
Assets | (Dollars in thousands) | ||||||||||||||||||||||
Commercial real estate | $ | 2,497,490 | 5.91 | % | $ | 2,438,476 | 5.84 | % | $ | 2,406,625 | 5.56 | % | |||||||||||
Construction/land/land development | 1,058,972 | 6.98 | 1,130,355 | 7.25 | 972,032 | 6.70 | |||||||||||||||||
Residential real estate(1) | 1,787,829 | 5.48 | 1,739,105 | 5.40 | 1,615,211 | 4.91 | |||||||||||||||||
Commercial and industrial ("C&I") | 2,128,486 | 7.87 | 2,121,502 | 7.89 | 2,059,285 | 7.59 | |||||||||||||||||
MW LOC | 430,885 | 7.57 | 306,248 | 7.59 | 396,348 | 6.49 | |||||||||||||||||
Consumer | 22,396 | 8.06 | 23,319 | 8.07 | 24,812 | 7.26 | |||||||||||||||||
LHFI | 7,926,058 | 6.58 | 7,759,005 | 6.58 | 7,474,313 | 6.18 | |||||||||||||||||
Loans held for sale | 14,702 | 6.84 | 12,906 | 5.86 | 22,504 | 4.28 | |||||||||||||||||
Loans receivable | 7,940,760 | 6.58 | 7,771,911 | 6.58 | 7,496,817 | 6.18 | |||||||||||||||||
Investment securities-taxable | 1,046,301 | 2.54 | 1,095,480 | 2.51 | 1,371,361 | 2.43 | |||||||||||||||||
Investment securities-nontaxable | 143,232 | 2.51 | 148,077 | 2.47 | 220,345 | 2.33 | |||||||||||||||||
Non-marketable equity securities held in other financial institutions | 56,270 | 6.53 | 58,455 | 3.77 | 79,143 | 5.92 | |||||||||||||||||
Interest-bearing balances due from banks | 254,627 | 5.53 | 240,432 | 5.37 | 476,555 | 5.15 | |||||||||||||||||
Total interest-earning assets | 9,441,190 | 6.04 | 9,314,355 | 5.99 | 9,644,221 | 5.50 | |||||||||||||||||
Noninterest-earning assets | 567,035 | 546,881 | 546,135 | ||||||||||||||||||||
Total assets | $ | 10,008,225 | $ | 9,861,236 | $ | 10,190,356 | |||||||||||||||||
Liabilities and Stockholders’ Equity | |||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||
Interest-bearing liabilities | |||||||||||||||||||||||
Savings and interest-bearing transaction accounts | $ | 5,130,224 | 3.80 | % | $ | 5,009,117 | 3.69 | % | $ | 4,740,963 | 2.90 | % | |||||||||||
Time deposits | 1,534,679 | 4.46 | 1,563,992 | 4.35 | 1,378,659 | 3.56 | |||||||||||||||||
Total interest-bearing deposits | 6,664,903 | 3.95 | 6,573,109 | 3.85 | 6,119,622 | 3.05 | |||||||||||||||||
FHLB advances and other borrowings | 41,666 | 4.96 | 42,284 | 4.92 | 606,148 | 5.26 | |||||||||||||||||
Subordinated indebtedness | 159,973 | 4.83 | 165,252 | 4.91 | 200,160 | 5.09 | |||||||||||||||||
Total interest-bearing liabilities | 6,866,542 | 3.98 | 6,780,645 | 3.88 | 6,925,930 | 3.30 | |||||||||||||||||
Noninterest-bearing liabilities | |||||||||||||||||||||||
Noninterest-bearing deposits | 1,894,141 | 1,866,496 | 2,139,973 | ||||||||||||||||||||
Other liabilities | 163,273 | 151,390 | 127,630 | ||||||||||||||||||||
Total liabilities | 8,923,956 | 8,798,531 | 9,193,533 | ||||||||||||||||||||
Stockholders’ Equity | 1,084,269 | 1,062,705 | 996,823 | ||||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 10,008,225 | $ | 9,861,236 | $ | 10,190,356 | |||||||||||||||||
Net interest spread | 2.06 | % | 2.11 | % | 2.20 | % | |||||||||||||||||
NIM | 3.15 | 3.17 | 3.13 | ||||||||||||||||||||
NIM-FTE(2) | 3.17 | 3.19 | 3.16 | ||||||||||||||||||||
Adjusted NIM-FTE(3) | 3.17 | 3.19 | 3.14 |
____________________________
(1) Includes multi-family real estate.
(2) In order to present pre-tax income and resulting yields on tax-exempt investments comparable to those on taxable investments, a tax-equivalent adjustment has been computed. This adjustment also includes income tax credits received on Qualified School Construction Bonds.
(3) Adjusted NIM-FTE is a non-GAAP financial measure and is calculated by removing the
Origin Bancorp, Inc. Notable Items (Unaudited) | |||||||||||||||||||||||||||||||||||||
At and For the Three Months Ended | |||||||||||||||||||||||||||||||||||||
June 30, 2024 | March 31, 2024 | December 31, 2023 | September 30, 2023 | June 30, 2023 | |||||||||||||||||||||||||||||||||
$ Impact | EPS Impact(1) | $ Impact | EPS Impact(1) | $ Impact | EPS Impact(1) | $ Impact | EPS Impact(1) | $ Impact | EPS Impact(1) | ||||||||||||||||||||||||||||
(Dollars in thousands, except per share amounts) | |||||||||||||||||||||||||||||||||||||
Notable interest income items: | |||||||||||||||||||||||||||||||||||||
Interest income reversal on relationships impacted by questioned banker activity | $ | (1,206 | ) | $ | (0.03 | ) | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||
Notable provision expense items: | |||||||||||||||||||||||||||||||||||||
Provision expense related to questioned banker activity | (3,212 | ) | (0.08 | ) | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Provision expense on relationships impacted by questioned banker activity | (4,131 | ) | (0.10 | ) | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Notable noninterest income items: | |||||||||||||||||||||||||||||||||||||
MSR gain (impairment) | — | — | 410 | 0.01 | (1,769 | ) | (0.05 | ) | — | — | — | — | |||||||||||||||||||||||||
Loss on sales of securities, net | — | — | (403 | ) | (0.01 | ) | (4,606 | ) | (0.12 | ) | (7,173 | ) | (0.18 | ) | — | — | |||||||||||||||||||||
Gain on sub-debt repurchase | 81 | — | — | — | — | — | — | — | 471 | 0.01 | |||||||||||||||||||||||||||
Positive valuation adjustment on non-marketable equity securities | 5,188 | 0.13 | — | — | — | — | 10,096 | 0.26 | — | — | |||||||||||||||||||||||||||
Gain on bank property sale | 800 | 0.02 | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
Notable noninterest expense items: | |||||||||||||||||||||||||||||||||||||
Operating expense related to questioned banker activity | (1,452 | ) | (0.04 | ) | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Total notable items | $ | (3,932 | ) | (0.10 | ) | $ | 7 | — | $ | (6,375 | ) | (0.16 | ) | $ | 2,923 | 0.07 | $ | 471 | 0.01 |
____________________________
(1) The diluted EPS impact is calculated using a
Six Months Ended June 30, | |||||||||||||||
2024 | 2023 | ||||||||||||||
$ Impact | EPS Impact(1) | $ Impact | EPS Impact(1) | ||||||||||||
(Dollars in thousands, except per share amounts) | |||||||||||||||
Notable interest income items: | |||||||||||||||
Interest income reversal on relationships impacted by questioned banker activity | $ | (1,206 | ) | $ | (0.03 | ) | $ | — | $ | — | |||||
Notable provision expense items: | |||||||||||||||
Provision expense related to questioned banker activity | (3,212 | ) | (0.08 | ) | — | — | |||||||||
Provision expense on relationships impacted by questioned banker activity | (4,131 | ) | (0.10 | ) | — | — | |||||||||
Notable noninterest income items: | |||||||||||||||
MSR gain | 410 | 0.01 | — | — | |||||||||||
(Loss) gain on sales of securities, net | (403 | ) | (0.01 | ) | 144 | — | |||||||||
Gain on sub-debt repurchase | 81 | — | 471 | 0.01 | |||||||||||
Positive valuation adjustment on non-marketable equity securities | 5,188 | 0.13 | — | — | |||||||||||
Gain on bank property sale | 800 | 0.02 | — | — | |||||||||||
Notable noninterest expense items: | |||||||||||||||
Operating expense related to questioned banker activity | (1,452 | ) | (0.04 | ) | — | — | |||||||||
Total notable items | $ | (3,925 | ) | (0.10 | ) | $ | 615 | 0.02 |
____________________________
(1) The diluted EPS impact is calculated using a
Origin Bancorp, Inc. Non-GAAP Financial Measures (Unaudited) | |||||||||||||||||||
At and For the Three Months Ended | |||||||||||||||||||
June 30, 2024 | March 31, 2024 | December 31, 2023 | September 30, 2023 | June 30, 2023 | |||||||||||||||
(Dollars in thousands, except per share amounts) | |||||||||||||||||||
Calculation of PTPP earnings: | |||||||||||||||||||
Net income | $ | 20,989 | $ | 22,632 | $ | 13,425 | $ | 24,313 | $ | 21,760 | |||||||||
Provision for credit losses | 5,231 | 3,012 | 2,735 | 3,515 | 4,306 | ||||||||||||||
Income tax expense | 5,747 | 6,227 | 4,119 | 5,758 | 5,974 | ||||||||||||||
PTPP earnings (non-GAAP) | $ | 31,967 | $ | 31,871 | $ | 20,279 | $ | 33,586 | $ | 32,040 | |||||||||
Calculation of PTPP ROAA: | |||||||||||||||||||
PTPP earnings | $ | 31,967 | $ | 31,871 | $ | 20,279 | $ | 33,586 | $ | 32,040 | |||||||||
Divided by number of days in the quarter | 91 | 91 | 92 | 92 | 91 | ||||||||||||||
Multiplied by the number of days in the year | 366 | 366 | 365 | 365 | 365 | ||||||||||||||
PTPP earnings, annualized | $ | 128,571 | $ | 128,184 | $ | 80,455 | $ | 133,249 | $ | 128,512 | |||||||||
Divided by total average assets | $ | 10,008,225 | $ | 9,861,236 | $ | 9,753,847 | $ | 10,035,564 | $ | 10,190,356 | |||||||||
ROAA (annualized) (GAAP) | 0.84 | % | 0.92 | % | 0.55 | % | 0.96 | % | 0.86 | % | |||||||||
PTPP ROAA (annualized) (non-GAAP) | 1.28 | 1.30 | 0.82 | 1.33 | 1.26 | ||||||||||||||
Calculation of tangible common equity to tangible common assets, book value per common share and adjusted tangible book value per common share: | |||||||||||||||||||
Total assets | $ | 9,947,182 | $ | 9,892,379 | $ | 9,722,584 | $ | 9,733,303 | $ | 10,165,163 | |||||||||
Goodwill | (128,679 | ) | (128,679 | ) | (128,679 | ) | (128,679 | ) | (128,679 | ) | |||||||||
Other intangible assets, net | (41,177 | ) | (43,314 | ) | (45,452 | ) | (42,460 | ) | (44,724 | ) | |||||||||
Tangible assets | 9,777,326 | 9,720,386 | 9,548,453 | 9,562,164 | 9,991,760 | ||||||||||||||
Total common stockholders’ equity | $ | 1,095,894 | $ | 1,078,853 | $ | 1,062,905 | $ | 998,945 | $ | 997,859 | |||||||||
Goodwill | (128,679 | ) | (128,679 | ) | (128,679 | ) | (128,679 | ) | (128,679 | ) | |||||||||
Other intangible assets, net | (41,177 | ) | (43,314 | ) | (45,452 | ) | (42,460 | ) | (44,724 | ) | |||||||||
Tangible common equity | 926,038 | 906,860 | 888,774 | 827,806 | 824,456 | ||||||||||||||
Accumulated other comprehensive loss | 127,184 | 124,909 | 121,023 | 172,729 | 152,879 | ||||||||||||||
Adjusted tangible common equity | 1,053,222 | 1,031,769 | 1,009,797 | 1,000,535 | 977,335 | ||||||||||||||
Divided by common shares outstanding at the end of the period | 31,108,667 | 31,011,304 | 30,986,109 | 30,906,716 | 30,866,205 | ||||||||||||||
Book value per common share (GAAP) | $ | 35.23 | $ | 34.79 | $ | 34.30 | $ | 32.32 | $ | 32.33 | |||||||||
Tangible book value per common share (non-GAAP) | 29.77 | 29.24 | 28.68 | 26.78 | 26.71 | ||||||||||||||
Adjusted tangible book value per common share (non-GAAP) | 33.86 | 33.27 | 32.59 | 32.37 | 31.66 | ||||||||||||||
Tangible common equity to tangible assets (non-GAAP) | 9.47 | % | 9.33 | % | 9.31 | % | 8.66 | % | 8.25 | % | |||||||||
Calculation of ROATCE: | |||||||||||||||||||
Net income | $ | 20,989 | $ | 22,632 | $ | 13,425 | $ | 24,313 | $ | 21,760 | |||||||||
Divided by number of days in the quarter | 91 | 91 | 92 | 92 | 91 | ||||||||||||||
Multiplied by number of days in the year | 366 | 366 | 365 | 365 | 365 | ||||||||||||||
Annualized net income | $ | 84,417 | $ | 91,025 | $ | 53,262 | $ | 96,459 | $ | 87,279 | |||||||||
Total average common stockholders’ equity | $ | 1,084,269 | $ | 1,062,705 | $ | 1,013,286 | $ | 1,012,912 | $ | 996,823 | |||||||||
Average goodwill | (128,679 | ) | (128,679 | ) | (128,679 | ) | (128,679 | ) | (128,679 | ) | |||||||||
Average other intangible assets, net | (42,563 | ) | (44,700 | ) | (46,825 | ) | (43,901 | ) | (46,379 | ) | |||||||||
Average tangible common equity | 913,027 | 889,326 | 837,782 | 840,332 | 821,765 | ||||||||||||||
ROATCE (non-GAAP) | 9.25 | % | 10.24 | % | 6.36 | % | 11.48 | % | 10.62 | % | |||||||||
Calculation of core efficiency ratio: | |||||||||||||||||||
Total noninterest expense | $ | 64,388 | $ | 58,707 | $ | 60,906 | $ | 58,663 | $ | 58,887 | |||||||||
Insurance and mortgage noninterest expense | (8,402 | ) | (8,045 | ) | (8,581 | ) | (8,579 | ) | (9,156 | ) | |||||||||
Adjusted total noninterest expense | 55,986 | 50,662 | 52,325 | 50,084 | 49,731 | ||||||||||||||
Net interest income | $ | 73,890 | $ | 73,323 | $ | 72,989 | $ | 74,130 | $ | 75,291 | |||||||||
Insurance and mortgage net interest income | (2,407 | ) | (2,795 | ) | (2,294 | ) | (2,120 | ) | (1,574 | ) | |||||||||
Total noninterest income | 22,465 | 17,255 | 8,196 | 18,119 | 15,636 | ||||||||||||||
Insurance and mortgage noninterest income | (8,543 | ) | (10,123 | ) | (4,727 | ) | (7,335 | ) | (7,587 | ) | |||||||||
Adjusted total revenue | 85,405 | 77,660 | 74,164 | 82,794 | 81,766 | ||||||||||||||
Efficiency ratio (GAAP) | 66.82 | % | 64.81 | % | 75.02 | % | 63.59 | % | 64.76 | % | |||||||||
Core efficiency ratio (non-GAAP) | 65.55 | 65.24 | 70.55 | 60.49 | 60.82 |
Six Months Ended June 30, | |||||||
2024 | 2023 | ||||||
(Dollars in thousands, except per share amounts) | |||||||
Calculation of PTPP earnings: | |||||||
Net income | $ | 43,621 | $ | 46,062 | |||
Provision for credit losses | 8,243 | 10,503 | |||||
Income tax expense | 11,974 | 12,246 | |||||
PTPP earnings (non-GAAP) | $ | 63,838 | $ | 68,811 | |||
Calculation of PTPP ROAA: | |||||||
PTPP Earnings | $ | 63,838 | $ | 68,811 | |||
Divided by the year-to-date number of days | 182 | 181 | |||||
Multiplied by number of days in the year | 366 | 365 | |||||
Annualized PTPP Earnings | $ | 128,378 | $ | 138,763 | |||
Divided by total average assets | 9,934,730 | 9,988,103 | |||||
ROAA (annualized) (GAAP) | 0.88 | % | 0.93 | % | |||
PTPP ROAA (annualized) (non-GAAP) | 1.29 | 1.39 | |||||
Calculation of ROATCE: | |||||||
Net income | $ | 43,621 | $ | 46,062 | |||
Divided by the year-to-date number of days | 182 | 181 | |||||
Multiplied by number of days in the year | 366 | 365 | |||||
Annualized net income | $ | 87,721 | $ | 92,887 | |||
Total average common stockholders’ equity | $ | 1,073,487 | $ | 986,491 | |||
Average goodwill | 128,679 | 128,679 | |||||
Average other intangible assets, net | 43,631 | 47,657 | |||||
Average tangible common equity | 901,177 | 810,155 | |||||
ROATCE | 9.73 | % | 11.47 | % | |||
Calculation of core efficiency ratio: | |||||||
Total noninterest expense | $ | 123,095 | $ | 115,647 | |||
Insurance and mortgage noninterest expense | (16,447 | ) | (17,189 | ) | |||
Adjusted total noninterest expense | 106,648 | 98,458 | |||||
Net interest income | $ | 147,213 | $ | 152,438 | |||
Insurance and mortgage net interest income | (5,202 | ) | (3,067 | ) | |||
Total noninterest income | 39,720 | 32,020 | |||||
Insurance and mortgage noninterest income | (18,666 | ) | (16,379 | ) | |||
Adjusted total revenue | 163,065 | 165,012 | |||||
Efficiency ratio | 65.85 | % | 62.70 | % | |||
Core efficiency ratio | 65.40 | 59.67 |
FAQ
What was Origin Bancorp's (OBK) net income for Q2 2024?
How did Origin Bancorp's (OBK) total loans held for investment change in Q2 2024?
What was Origin Bancorp's (OBK) book value per share as of June 30, 2024?
How did Origin Bancorp's (OBK) noninterest income perform in Q2 2024?