• Origin Bancorp, Inc. Reports Earnings for Fourth Quarter and 2020 Full Year

    ソース: Nasdaq GlobeNewswire / 27 1 2021 15:15:01   America/Chicago

    RUSTON, La., Jan. 27, 2021 (GLOBE NEWSWIRE) -- Origin Bancorp, Inc. (Nasdaq: OBNK) ("Origin" or the "Company"), the holding company for Origin Bank (the "Bank"), today announced net income of $17.6 million for the quarter ended December 31, 2020. This represents an increase of $4.5 million from the quarter ended September 30, 2020, and an increase of $4.7 million from the quarter ended December 31, 2019. Diluted earnings per share for the quarter ended December 31, 2020, were $0.75, up $0.19 from the linked quarter and up $0.20 from the quarter ended December 31, 2019. Pre-tax pre-provision earnings for the quarter were $28.3 million, a decrease of 5.4% on a linked quarter basis, and a 54.1% increase on a prior year quarter basis, while the efficiency ratio improved to 57.9%, an 867 basis point decrease from the quarter ended December 31, 2019.

    Net income for the year ended December 31, 2020, was $36.4 million, representing a decrease of $17.5 million compared to the year ended December 31, 2019, primarily reflecting a year-over-year increase in provision expense, offset by higher net interest income and noninterest income. Diluted earnings per share for the year ended December 31, 2020, was $1.55, representing a decrease of $0.73 from diluted earnings per share of $2.28 for the year ended December 31, 2019.

    “I am extremely proud that our employees continue to remain committed to our culture and creating opportunities out of challenges to better serve our customers and communities," said Drake Mills, Chairman, President, and CEO of Origin Bancorp, Inc. “We believe our company has shown amazing resiliency, and we are strategically positioned to build sustainable, long term value for our stakeholders and continue to help the economic recovery across our footprint.”

    Financial Highlights

    • Net income was $17.6 million for the quarter ended December 31, 2020, achieving a historic high compared to $13.1 million for the linked quarter and $12.8 million for the quarter end December 31, 2019.
    • Net interest income also achieved a historic high, reflecting $51.8 million for the quarter ended December 31, 2020, compared to $50.6 million for the linked quarter and $44.1 million for the quarter ended December 31, 2019.
    • Diluted earnings per share for the quarter ended December 31, 2020 were $0.75, compared to $0.56 for the linked quarter and $0.55 for the quarter ended December 31, 2019.
    • Provision expense was $6.3 million for the quarter ended December 31, 2020, compared to provision expense of $13.6 million for the linked quarter and $2.4 million for the quarter ended December 31, 2019.
    • Total LHFI were $5.72 billion at December 31, 2020, an increase of $112.1 million, or 2.0%, from September 30, 2020, and an increase of $1.58 billion, or 38.2%, from December 31, 2019.
    • Total deposits at December 31, 2020, were $5.75 billion, a decrease of $184.6 million, or 3.1%, from September 30, 2020, and an increase of $1.52 billion, or 36.0%, from December 31, 2019.
    • The Company completed an offering of $80 million in aggregate principal amount of subordinated notes due 2030 in October 2020. The notes qualify as Tier 2 capital for the Company and approximately $51.0 million was contributed to the Bank and qualifies as Tier 1 capital for regulatory capital purposes for Origin Bank.

    Coronavirus (COVID-19)

    Origin has continued to meet customers' needs while keeping the safety and well-being of the Company's employees and customers as its top priority. The Company implemented a COVID-19 hotline and a temporary pandemic Paid Time Off policy to assist employees. The Company's offices and all branches remained open with all drive-thrus fully operational. The Company has maintained social distancing measures for its employees working in the Company's offices, including appointment-only restricted lobby access and requiring employees to wear face masks unless working in an office or other location that permits social distancing. The Company has also enhanced its sanitation protocols, implemented return-to-work screening protocols following potential exposures, as well as other measures consistent with applicable federal, state, and local guidelines to promote the safety and health of its employees and customers. To allow for more normalized customer operations, the Company has installed thermal kiosks for temperature checks at the entrance of each location and will evaluate any additional safety protocols to allow unrestricted lobby access in the future, if the circumstances allow.

    Credit Quality

    The COVID-19 pandemic has continued to have a severe impact on the U.S. economy leading to elevated unemployment levels and a recession. The Company's results for 2020 have been impacted by higher provision expense resulting in an increase in the allowance for credit losses due to the COVID-19 pandemic and the uncertainty surrounding the economic outlook.

    The table below includes key credit quality information:

     At and for the three months ended
     December 31,
    2020    		 September 30,
    2020    		 December 31,
    2019
    Allowance for loan credit losses$86,670   $81,643   $37,520  
    Classified loans107,781   100,859   65,117  
    Total nonperforming LHFI26,149   30,228   31,146  
    Provision expense6,333   13,633   2,377  
    Net charge-offs1,757   1,795   2,773  
    Credit quality ratios:     
    Allowance for loan credit losses to nonperforming LHFI331.45 % 270.09 % 120.46 %
    Allowance for loan credit losses to total LHFI1.51   1.45   0.91  
    Allowance for loan credit losses to total LHFI excluding PPP and warehouse loans (1)2.10   2.00   0.96  
    Nonperforming LHFI to LHFI0.46   0.54   0.75  
    Net charge-offs to total average LHFI (annualized)0.13   0.13   0.26  

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

    The decrease in provision expense compared to the linked quarter reflects an improvement in forecasted economic conditions. While we are seeing some improvements in economic forecasts, there remains a heightened level of uncertainty, particularly related to the first half of 2021, regarding the economic impact of increasing COVID-19 cases and the deployment of a vaccine. The increase from December 31, 2019, was primarily due to the decline in overall economic conditions as a result of the aforementioned uncertainty resulting from the pandemic and the change in accounting methods from incurred loss to expected loss under the implementation of Accounting Standards Update ("ASU") No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ("CECL").

    The Company continues to closely monitor those industry sectors that could experience a more protracted recovery from the current economic downturn, specifically the sectors of hotels, energy, non-essential retail, restaurants, and assisted living. Excluding PPP loans, at December 31, 2020, the Company had $538.6 million, or 10.4%, of its LHFI invested in these sectors and, while the Company has increased its allowance for loan credit losses related to these sectors, the allowance is a current estimate and may be subject to change. Nonperforming LHFI in these sectors were $5.9 million at December 31, 2020, while past due LHFI, defined as loans 30 days or more past due, as a percentage of LHFI in these sectors, excluding PPP loans, was 1.0% at December 31, 2020. Loans in COVID-19 related forbearance totaled $97.7 million and represented 1.9% of LHFI, excluding PPP loans, at December 31, 2020. For more information on Origin’s COVID-19 impacted sectors, please see the Investor Presentation furnished to the SEC on January 27, 2021, and on Origin's website at www.origin.bank under the Investor Relations, News & Events, Events & Presentations link.

    The estimated impact and uncertain outcome of the COVID-19 pandemic led to an increase in classified assets as well as an increase in the allowance for loan credit losses. Classified loans as a percentage of LHFI, excluding PPP loans, and as a percentage of total risk-based capital (at the Origin Bancorp, Inc. level) were 2.08% and 12.88%, respectively, at December 31, 2020, reflecting an increase from 1.57% and 10.67%, respectively, at December 31, 2019.

    Results of Operations for the Three Months Ended December 31, 2020

    Net Interest Income and Net Interest Margin

    Net interest income for the quarter ended December 31, 2020, was $51.8 million, an increase of $1.2 million, or 2.4%, compared to the linked quarter. The increase was primarily due to a $1.5 million increase in income from mortgage warehouse lines of credit coupled with a $1.1 million reduction in total interest-bearing deposit expenses, offset by a $1.4 million decrease in interest earned on commercial and industrial loans and a $761,000 increase in subordinated debenture interest expense during the current quarter compared to the linked quarter.

    Interest income on mortgage warehouse lines of credit increased by $1.5 million during the quarter ended December 31, 2020, compared to the linked quarter due to higher mortgage activity driven by the continued low interest rate environment, coupled with additional mortgage warehouse clients being onboarded and funding loans during 2020. Interest income earned on commercial and industrial loans, excluding PPP loans, decreased by $1.4 million during the quarter ended December 31, 2020, compared to the linked quarter due to a combination of the impact of lower interest rates and lower average balances, which contributed $883,000 and $478,000, respectively, to the decrease.

    Interest-bearing deposit expense was $4.6 million during the current quarter, compared to $5.7 million for the quarter ended September 30, 2020, primarily due to a reduction in deposit rates. The average rate on savings and interest-bearing transaction accounts was 0.29% for the current quarter, down from 0.39% for the linked quarter, accounting for $900,000 of the decrease in interest expense from the linked quarter. The average rate on time deposits decreased to 1.20% for the current quarter, down from 1.50% for the linked quarter, providing an additional decrease of $511,000 in interest expense. These two interest expense declines were offset by a $496,000 increase in interest expense due to an increase in the average balances of savings and interest-bearing transaction accounts when comparing the December 31, 2020, quarter to the linked quarter.

    The fully tax-equivalent net interest margin ("NIM") was 3.07% for the current quarter, an 11 basis point decrease from the linked quarter and a 51 basis point decrease from the quarter ended December 31, 2019. Excluding PPP loans, the fully tax-equivalent NIM was 3.17%, also an 11 basis point decrease from the linked quarter. The yield earned on interest-earning assets was 3.47%, a 17 basis point and a 109 basis point decrease compared to the linked quarter and the quarter ended December 31, 2019, respectively. Excluding PPP loans, the yield earned on interest-earning assets was 3.57%, an 18 basis point decrease compared to the linked quarter. The rate paid on total interest-bearing liabilities for the quarter ended December 31, 2020, was 0.64%, representing a decrease of 11 basis points and 82 basis points compared to the linked quarter and the quarter ended December 31, 2019, respectively. The Company has experienced margin compression since the quarter ended December 31, 2019, primarily caused by decreasing loan yields driven by declining short-term interest rates over the last several quarters.

    Noninterest Income

    Noninterest income for the quarter ended December 31, 2020, was $15.4 million, a decrease of $2.7 million, or 14.8%, from the linked quarter. The decrease from the linked quarter was primarily driven by a decrease of $2.9 million in mortgage banking revenue.

    Mortgage banking revenue decreased primarily due to a $1.6 million decrease in volume-related gains and income and a $1.3 million decrease in hedge effectiveness. Mortgage servicing revenue hedge performance was lower during the quarter ended December 31, 2020, compared to the linked quarter, with only $68,000 net hedge effectiveness during the quarter ended December 31, 2020, compared to $1.4 million in net hedge effectiveness during the quarter ended September 30, 2020. Mortgage banking revenue increased $3.2 million, or 96.3%, from the quarter ended December 31, 2019.

    Noninterest Expense

    Noninterest expense for the quarter ended December 31, 2020, was $38.9 million, a slight increase of $150,000, compared to the linked quarter. The increase from the linked quarter was largely driven by an increase of $391,000 in professional services expense, which was offset by a decrease of $213,000 in other noninterest expense.

    The increase in professional services expense was primarily driven by fees paid to a loan sale advisor who assisted in the sale of a performing loan during the quarter.

    The decrease in other noninterest expense was largely due to a litigation accrual of $475,000 that was recorded during the quarter ended September 30, 2020, not recurring in the current quarter.

    Financial Condition

    Loans

    • Total LHFI increased $112.1 million compared to the linked quarter and $1.58 billion compared to December 31, 2019.
    • PPP loans, net of deferred fees and costs, totaled $546.5 million at December 31, 2020, and decreased $5.8 million compared to the linked quarter.
    • Average LHFI increased $164.0 million, compared to the linked quarter, and $1.29 billion compared to December 31, 2019.

    Total LHFI at December 31, 2020, were $5.72 billion, reflecting an increase of 2.0% compared to the linked quarter and an increase of 38.2%, compared to December 31, 2019. The increase in LHFI was primarily driven by an increase in mortgage warehouse lines of credit and PPP loans when compared to December 31, 2019. Mortgage warehouse lines of credit increased by $809.3 million primarily due to increased mortgage activity driven by the continued low interest rate environment, coupled with additional mortgage warehouse clients being onboarded and funding loans during 2020.

    Deposits

    • Total deposits decreased $184.6 million compared to the linked quarter and increased $1.52 billion compared to December 31, 2019.
    • Business depositors drove an increase of $691.0 million compared to the quarter ended December 31, 2019.
    • Average brokered deposits for the quarter ended December 31, 2020, increased by $344.2 million over the linked quarter and $489.6 million over the quarter ended December 31, 2019. Brokered deposits at December 31, 2020, decreased by $404.7 million compared to the linked quarter and increased $278.6 million compared to December 31, 2019.
    • Average total deposits for the quarter ended December 31, 2020, increased by $508.7 million over the linked quarter and $1.68 billion over the quarter ended December 31, 2019.

    Total deposits at December 31, 2020, were $5.75 billion, reflecting a decrease of 3.1% compared to the linked quarter and an increase of 36.0% compared to December 31, 2019. Brokered deposits declined by $404.7 million, offset by increases in interest-bearing demand and money market deposits of $145.7 million and $88.6 million, respectively, compared to the linked quarter. The Company has used noncore funding sources, including brokered deposits, to support the increase in mortgage warehouse lines of credit during 2020. In December 2020, due to changing rates on noncore funding options, the Company shifted some noncore funding from brokered deposits to FHLB advances, which has caused a decline in brokered deposit balances at December 31, 2020, when compared to September 30, 2020. Also, the Company was able to increase other deposits which contributed to the reduction in brokered deposits at December 31, 2020. Increases of $529.9 million, $512.9 million and $278.6 million in noninterest-bearing, money market and brokered deposits, respectively, drove the increase in total deposits compared to December 31, 2019, partially due to depositors moving into a statistically higher percentage of personal savings rates.

    For the quarter ended December 31, 2020, average noninterest-bearing deposits as a percentage of total average deposits was 28.7%, compared to 30.4% for the quarter ended September 30, 2020, and 27.4% for the quarter ended December 31, 2019.

    Borrowings

    • Average FHLB advances and other borrowings for the quarter ended December 31, 2020, decreased by $193.7 million, compared to the quarter ended September 30, 2020, and decreased by $3.0 million over the quarter ended December 31, 2019.
    • Average subordinated debentures increased $65.9 million for the quarter ended December 31, 2020, compared to the linked quarter and $134.8 million compared to the quarter ended December 31, 2019.

    Average FHLB advances and other borrowings decreased 36.4% for the quarter ended December 31, 2020, compared to the quarter ended September 30, 2020, and decreased 0.9% compared to the quarter ended December 31, 2019. During the quarter ended September 30, 2020, the Company repaid $319.3 million of advances under the Federal Reserve's PPP Lending Facility which caused a decrease in average borrowings of $209.3 million during the quarter ended December 31, 2020.

    In October 2020, the Company completed of an offering of $80.0 million in aggregate principal amount of 4.50% fixed-to floating rate subordinated notes due 2030. Additionally, in February 2020, Origin Bank completed an offering of $70.0 million in aggregate principal amount of 4.25% fixed-to-floating rate subordinated notes due 2030.

    Stockholders' equity was $647.2 million at December 31, 2020, an increase of $19.5 million compared to $627.6 million at September 30, 2020, and an increase of $47.9 million compared to $599.3 million at December 31, 2019. The increase from the linked quarter was primarily due to net income for the quarter of $17.6 million. The increase from the December 31, 2019, quarter was primarily caused by retained earnings and other comprehensive income during the intervening period.

    Conference Call

    Origin will hold a conference call to discuss its fourth quarter and 2020 full year results on Thursday, January 28, 2021, at 8:00 a.m. Central Time (9:00 a.m. Eastern Time). To participate in the live conference call, please dial (844) 695-5516; International: (412) 902-6750 and request to be joined into the Origin Bancorp, Inc. (OBNK) call. A simultaneous audio-only webcast may be accessed via Origin's website at www.origin.bank under the Investor Relations, News & Events, Events & Presentations link or directly by visiting https://services.choruscall.com/links/obnk210128.html.

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

    About Origin Bancorp, Inc.

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

    Forward-Looking Statements

    This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include information regarding Origin's future financial performance, business and growth strategy, projected plans and objectives, including the Company’s loan loss reserves and allowance for credit losses related to the COVID-19 pandemic and any expected purchases of its outstanding common stock, and related transactions and other projections based on macroeconomic and industry trends, including expectations regarding efforts to respond to the COVID-19 pandemic and continued low interest rates or interest rate cuts by the Federal Reserve and the resulting impact on Origin's results of operations, estimated forbearance amounts and expectations regarding the Company's liquidity, including in connection with advances obtained from the FHLB, which are all subject to change and may be inherently unreliable due to the multiple factors that impact broader economic and industry trends, and any such changes may be material. Such forward-looking statements are based on various facts and derived utilizing important assumptions and current expectations, estimates and projections about Origin and its subsidiaries, any of which may change over time and some of which may be beyond Origin's control. Statements or statistics preceded by, followed by or that otherwise include the words "anticipates," "believes," "estimates," "expects," “foresees,” "intends," "plans," "projects," and similar expressions or future or conditional verbs such as "could," "may," “might,” "should," "will," and "would" or variations of such terms are generally forward-looking in nature and not historical facts, although not all forward-looking statements include the foregoing words. Further, certain factors that could affect Origin's future results and cause actual results to differ materially from those expressed in the forward-looking statements include, but are not limited to: the continuing duration and impacts of the COVID-19 global pandemic and continuing development and distribution of COVID-19 vaccines, as well as other efforts to contain the virus's transmission, including the effect of these factors and developments on Origin’s business, customers and economic conditions generally, as well as the impact of the actions taken by governmental authorities to address the impact of COVID-19 on the United States economy, including, without limitation, the Coronavirus Aid, Relief and Economic Security Act (the “CARES Act”) and any related future economic stimulus legislation; deterioration of Origin's asset quality; factors that can impact the performance of Origin’s loan portfolio, including real estate values and liquidity in Origin's primary market areas; the financial health of Origin's commercial borrowers and the success of construction projects that Origin finances; changes in the value of collateral securing Origin's loans; Origin’s ability to anticipate interest rate changes and manage interest rate risk; the effectiveness of Origin’s risk management framework and quantitative models; Origin’s inability to receive dividends from Origin Bank and to service debt, pay dividends to Origin’s common stockholders, repurchase Origin’s shares of common stock and satisfy obligations as they become due; business and economic conditions generally and in the financial services industry, nationally and within Origin's primary market areas; changes in Origin’s operation or expansion strategy or Origin's ability to prudently manage its growth and execute its strategy; changes in management personnel; Origin's ability to maintain important customer relationships, reputation or otherwise avoid liquidity risks; increasing costs as Origin grows deposits; operational risks associated with Origin’s business; volatility and direction of market interest rates; increased competition in the financial services industry, particularly from regional and national institutions; difficult market conditions and unfavorable economic trends in the United States generally, and particularly in the market areas in which Origin operates and in which its loans are concentrated; an increase in unemployment levels and slowdowns in economic growth; Origin's level of nonperforming assets and the costs associated with resolving any problem loans including litigation and other costs; the credit risk associated with the substantial amount of commercial real estate, construction and land development, and commercial loans in Origin's loan portfolio; changes in the laws, rules, regulations, interpretations or policies relating to financial institutions, and potential expenses associated with complying with such regulations, periodic changes to the extensive body of accounting rules and best practices; further government intervention in the U.S. financial system; compliance with governmental and regulatory requirements, including the Dodd-Frank Wall Street Reform and Consumer Protection Act and others relating to banking, consumer protection, securities and tax matters; Origin's ability to comply with applicable capital and liquidity requirements, including its ability to generate liquidity internally or raise capital on favorable terms, including continued access to the debt and equity capital markets; changes in the utility of Origin's non-GAAP liquidity measurements and its underlying assumptions or estimates; uncertainty regarding the future of the London Interbank Offered Rate and the impact of any replacement alternatives on Origin’s business; possible changes in trade, monetary and fiscal policies, laws and regulations and other activities of governments, agencies and similar organizations; natural disasters and adverse weather events, acts of terrorism, an outbreak of hostilities, regional or national protests and civil unrest (including any resulting branch closures or property damage), widespread illness or public health outbreaks or other international or domestic calamities, and other matters beyond Origin’s control; and system failures, cybersecurity threats or security breaches and the cost of defending against them. For a discussion of these and other risks that may cause actual results to differ from expectations, please refer to the sections titled "Cautionary Note Regarding Forward-Looking Statements" and "Risk Factors" in Origin's most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission and any updates to those sections set forth in Origin's subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. If one or more events related to these or other risks or uncertainties materialize, or if Origin's underlying assumptions prove to be incorrect, actual results may differ materially from what Origin anticipates. Accordingly, you should not place undue reliance on any forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made, and Origin does not undertake any obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise.

    New risks and uncertainties arise from time to time, and it is not possible for Origin to predict those events or how they may affect Origin. In addition, Origin cannot assess the impact of each factor on Origin's business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. Furthermore, many of these risks and uncertainties are currently amplified by and may continue to be amplified by or may, in the future, be amplified by, the outbreak of the COVID-19 pandemic and the impact of varying governmental responses, including the CARES Act, that affect Origin's customers and the economies where they operate. All forward-looking statements, expressed or implied, included in this communication are expressly qualified in their entirety by this cautionary statement. This cautionary statement should also be considered in connection with any subsequent written or oral forward-looking statements that Origin or persons acting on Origin's behalf may issue. Annualized, pro forma, adjusted, projected and estimated numbers are used for illustrative purpose only, are not forecasts and may not reflect actual results.

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


    Origin Bancorp, Inc.
    Selected Quarterly Financial Data

     At and for the three months ended
     December 31,
    2020    		 September 30,
    2020    		 June 30,
    2020    		 March 31,
    2020    		 December 31,
    2019
              
    Income statement and share amounts(Dollars in thousands, except per share amounts, unaudited)
    Net interest income$51,819  $50,617  $46,290  $42,810   $44,095 
    Provision for credit losses6,333  13,633  21,403  18,531   2,377 
    Noninterest income15,381  18,051  19,076  12,144   10,818 
    Noninterest expense38,884  38,734  38,220  36,097   36,534 
    Income before income tax expense21,983  16,301  5,743  326   16,002 
    Income tax (benefit) expense4,431  3,206  786  (427)  3,175 
    Net income$17,552  $13,095  $4,957  $753   $12,827 
    Pre-tax, pre-provision ("PTPP") earnings (1)$28,316  $29,934  $27,146  $18,857   $18,379 
    Basic earnings per common share0.75  0.56  0.21  0.03   0.55 
    Diluted earnings per common share0.75  0.56  0.21  0.03   0.55 
    Dividends declared per common share0.10  0.0925  0.0925  0.0925   0.0925 
    Weighted average common shares outstanding - basic23,392,684  23,374,496  23,347,744  23,353,601   23,323,292 
    Weighted average common shares outstanding - diluted23,543,917  23,500,596  23,466,326  23,530,212   23,529,862 
    Balance sheet data         
    Total LHFI$5,724,773  $5,612,666  $5,312,194  $4,481,185   $4,143,195 
    Total assets7,628,268  7,101,338  6,643,909  6,049,638   5,324,626 
    Total deposits5,751,315  5,935,925  5,372,222  4,556,246   4,228,612 
    Total stockholders' equity647,150  627,637  614,781  606,631   599,262 
    Performance metrics and capital ratios         
    Yield on LHFI3.89% 4.02% 4.09% 4.85 % 4.95%
    Yield on interest earnings assets3.47  3.64  3.65  4.37   4.56 
    Cost of interest bearing deposits0.43  0.61  0.79  1.28   1.44 
    Cost of total deposits0.31  0.42  0.54  0.95   1.04 
    Net interest margin, fully tax equivalent3.07  3.18  3.09  3.44   3.58 
    Net interest margin, excluding PPP loans, fully tax equivalent (2)3.17  3.28  3.15  N/A N/A
    Return on average stockholders' equity (annualized)10.92  8.28  3.23  0.50   8.51 
    Return on average assets (annualized)0.97  0.77  0.31  0.06   0.97 
    PTPP return on average stockholders' equity (annualized) (1)17.61  18.92  17.67  12.41   12.19 
    PTPP return on average assets (annualized) (1)1.57  1.77  1.69  1.40   1.38 
    Efficiency ratio (3)57.86  56.41  58.47  65.69   66.53 
    Book value per common share$27.53  $26.70  $26.16  $25.84   $25.52 
    Tangible book value per common share (1)26.23  25.39  24.84  24.51   24.18 
    Common equity tier 1 to risk-weighted assets (4)9.96% 9.93% 10.35% 10.86 % 11.74%
    Tier 1 capital to risk-weighted assets (4)10.12  10.09  10.52  11.04   11.94 
    Total capital to risk-weighted assets (4)13.80  12.48  12.91  13.38   12.76 
    Tier 1 leverage ratio (4)8.62  9.19  9.10  10.71   10.91 

    ____________________________
    (1)   PTPP earnings, PTPP return on average stockholders' equity, PTPP return on average assets and tangible book value per common share are non-GAAP financial measures. For a reconciliation of these non-GAAP financial measures to their comparable GAAP measures, please see page 15.
    (2)   Net interest margin, excluding PPP loans, fully tax equivalent is calculated by removing average PPP loans from average interest earning assets, and removing the associated interest income (net of 35 basis points assumed cost of funds on average PPP loan balances) from net interest income.
    (3)   Calculated by dividing noninterest expense by the sum of net interest income plus noninterest income.
    (4)   December 31, 2020, ratios are estimated and calculated at the Company level, which is subject to the capital adequacy requirements of the Federal Reserve Board.

    Origin Bancorp, Inc.
    Consolidated Quarterly Statements of Income

     Three months ended
     December 31,
    2020    		 September 30,
    2020    		 June 30,
    2020    		 March 31,
    2020    		 December 31,
    2019
              
    Interest and dividend income(Dollars in thousands, except per share amounts, unaudited)
    Interest and fees on loans$54,193  $54,150  $50,722  $50,049  $52,331 
    Investment securities-taxable3,154  2,704  2,732  2,712  2,640 
    Investment securities-nontaxable1,708  1,571  1,391  758  772 
    Interest and dividend income on assets held in other financial institutions367  375  619  1,497  976 
    Total interest and dividend income59,422  58,800  55,464  55,016  56,719 
    Interest expense         
    Interest-bearing deposits4,582  5,698  6,620  10,250  11,056 
    FHLB advances and other borrowings1,339  1,564  1,641  1,351  1,428 
    Junior subordinated debentures1,682  921  913  605  140 
    Total interest expense7,603  8,183  9,174  12,206  12,624 
    Net interest income 51,819  50,617  46,290  42,810  44,095 
    Provision for credit losses6,333  13,633  21,403  18,531  2,377 
    Net interest income after provision for credit losses45,486  36,984  24,887  24,279  41,718 
    Noninterest income         
    Service charges and fees3,420  3,268  2,990  3,320  3,488 
    Mortgage banking revenue6,594  9,523  10,717  2,769  3,359 
    Insurance commission and fee income2,732  3,218  3,109  3,687  2,428 
    Gain on sales of securities, net225  301  —  54  — 
    (Loss) on sales and disposals of other assets, net(33) (247) (908) (25) (38)
    Limited partnership investment income (loss)368  130  9  (429) (267)
    Swap fee income233  110  1,527  676  151 
    Other fee income604  576  607  466  440 
    Other income1,238  1,172  1,025  1,626  1,257 
    Total noninterest income15,381  18,051  19,076  12,144  10,818 


    Origin Bancorp, Inc.
    Consolidated Quarterly Statements of Income

     Three months ended
     December 31,
    2020    		 September 30,
    2020    		 June 30,
    2020    		 March 31,
    2020    		 December 31,
    2019
              
     (Dollars in thousands, except per share amounts, unaudited)
    Noninterest expense         
    Salaries and employee benefits22,475   22,597   24,045   21,988    22,074  
    Occupancy and equipment, net4,271   4,263   4,267   4,221    4,241  
    Data processing2,178   2,065   2,075   2,003    1,801  
    Electronic banking942   954   890   900    936  
    Communications449   422   419   477    454  
    Advertising and marketing1,108   1,281   610   711    991  
    Professional services1,176   785   843   1,171    878  
    Regulatory assessments1,135   1,310   766   615    679  
    Loan related expenses1,856   1,809   1,509   1,142    1,400  
    Office and operations1,472   1,367   1,344   1,441    1,632  
    Intangible asset amortization237   237   287   299    302  
    Franchise tax expense665   511   514   496    496  
    Other expenses920   1,133   651   633    650  
    Total noninterest expense38,884   38,734   38,220   36,097    36,534  
    Income before income tax expense21,983   16,301   5,743   326    16,002  
    Income tax expense (benefit)4,431   3,206   786   (427)  3,175  
    Net income$17,552   $13,095   $4,957   $753    $12,827  
    Basic earnings per common share$0.75   $0.56   $0.21   $0.03    $0.55  
    Diluted earnings per common share0.75   0.56   0.21   0.03    0.55  


    Origin Bancorp, Inc.
    Selected Annual Financial Data

     Year Ended December 31,
    (Dollars in thousands, except per share amounts)2020 2019
    Income statement and share amounts(Unaudited)  
    Net interest income$191,536   $173,712  
    Provision for credit losses59,900   9,568  
    Noninterest income64,652   46,478  
    Noninterest expense151,935   144,074  
    Income before income tax expense44,353   66,548  
    Income tax expense7,996   12,666  
    Net income$36,357   $53,882  
    PTPP earnings (1)$104,253   $76,116  
    Basic earnings per common share (2)1.56   2.30  
    Diluted earnings per common share(2)1.55   2.28  
    Dividends declared per common share0.3775   0.25  
    Weighted average common shares outstanding - basic23,367,221   23,470,746  
    Weighted average common shares outstanding - diluted23,511,952   23,674,065  
        
    Performance metrics   
    Yield on LHFI4.17 % 5.18 %
    Yield on interest earning assets3.75   4.77  
    Cost of interest bearing deposits0.75   1.53  
    Cost of total deposits0.53   1.12  
    Net interest margin, fully tax equivalent3.18   3.69  
    Net interest margin, excluding PPP loans, fully tax equivalent (3)3.25   N/A
    Return on average stockholders' equity5.82   9.27  
    Return on average assets0.56   1.06  
    PTPP return on average stockholders' equity (1)16.69   13.10  
    PTPP return on average assets (1)1.62   1.49  
    Efficiency ratio (4)59.31   65.43  

    ____________________________
    (1)   PTPP earnings, PTPP return on average stockholders' equity, and PTPP return on average assets are non-GAAP financial measures. For a reconciliation of these non-GAAP financial measures to their comparable GAAP measures, please see page 15.
    (2)   Due to the combined impact of the repurchase of common stock on the quarterly average common shares outstanding calculation compared to the impact of the repurchase of common stock shares on the year-to-date average common outstanding calculation, and the effect of rounding, the sum of the quarterly earnings per common share may not equal the year-to-date earnings per common share amount.
    (3)   Net interest margin, excluding PPP loans, fully tax equivalent is calculated by removing average PPP loans from average interest earning assets, and removing the associated interest income (net of 35 basis points assumed cost of funds on average PPP loan balances) from net interest income.
    (4)   Calculated by dividing noninterest expense by the sum of net interest income plus noninterest income.  

    Origin Bancorp, Inc.
    Consolidated Balance Sheets

    (Dollars in thousands)December 31,
    2020    		 September 30,
    2020    		 June 30,
    2020    		 March 31,
    2020    		 December 31,
    2019
    Assets(Unaudited) (Unaudited) (Unaudited) (Unaudited)  
    Cash and due from banks$60,544   $61,250   $57,054   $91,104   $62,160  
    Interest-bearing deposits in banks316,670   160,661   99,282   469,075   229,358  
    Total cash and cash equivalents377,214   221,911   156,336   560,179   291,518  
    Securities:         
    Available for sale1,004,674   797,260   720,616   601,637   501,070  
    Held to maturity, net of allowance for credit losses38,128   38,193   38,287   28,383   28,620  
    Securities carried at fair value through income11,554   11,813   11,977   12,242   11,513  
    Total securities1,054,356   847,266   770,880   642,262   541,203  
    Non-marketable equity securities held in other financial institutions62,586   38,052   41,864   52,267   39,808  
    Loans held for sale191,512   155,525   121,541   75,322   64,837  
    Loans5,724,773   5,612,666   5,312,194   4,481,185   4,143,195  
    Less: allowance for loan credit losses86,670   81,643   70,468   56,063   37,520  
    Loans, net of allowance for loan credit losses5,638,103   5,531,023   5,241,726   4,425,122   4,105,675  
    Premises and equipment, net81,763   79,254   80,025   80,193   80,457  
    Mortgage servicing rights13,660   14,322   15,235   16,122   20,697  
    Cash surrender value of bank-owned life insurance37,553   37,332   37,102   36,874   37,961  
    Goodwill and other intangible assets, net30,480   30,717   30,953   31,241   31,540  
    Accrued interest receivable and other assets141,041   145,936   148,247   130,056   110,930  
    Total assets$7,628,268   $7,101,338   $6,643,909   $6,049,638   $5,324,626  
    Liabilities and Stockholders' Equity         
    Noninterest-bearing deposits$1,607,564   $1,599,436   $1,584,746   $1,115,811   $1,077,706  
    Interest-bearing deposits3,478,985   3,640,587   3,041,859   2,673,881   2,360,096  
    Time deposits664,766   695,902   745,617   766,554   790,810  
    Total deposits5,751,315   5,935,925   5,372,222   4,556,246   4,228,612  
    FHLB advances and other borrowings984,608   360,325   478,260   716,909   417,190  
    Subordinated debentures157,181   78,596   78,567   78,539   9,671  
    Accrued expenses and other liabilities88,014   98,855   100,079   91,313   69,891  
    Total liabilities6,981,118   6,473,701   6,029,128   5,443,007   4,725,364  
    Stockholders' equity         
    Common stock117,532   117,533   117,506   117,380   117,405  
    Additional paid-in capital237,341   236,679   236,156   235,709   235,623  
    Retained earnings266,628   251,427   240,506   237,720   239,901  
    Accumulated other comprehensive income25,649   21,998   20,613   15,822   6,333  
    Total stockholders' equity647,150   627,637   614,781   606,631   599,262  
    Total liabilities and stockholders' equity$7,628,268   $7,101,338   $6,643,909   $6,049,638   $5,324,626  


    Origin Bancorp, Inc.
    Loan Data

     At and for the three months ended
    (Dollars in thousands, unaudited)December 31,
    2020    		 September 30,
    2020    		 June 30,
    2020    		 March 31,
    2020    		 December 31,
    2019
    LHFI         
    Commercial real estate$1,387,939   $1,367,916   $1,323,754   $1,302,520   $1,296,847  
    Construction/land/land development531,860   560,857   570,032   563,820   517,688  
    Residential real estate885,120   832,055   769,354   703,263   689,555  
    Total real estate loans2,804,919   2,760,828   2,663,140   2,569,603   2,504,090  
    Paycheck Protection Program546,519   552,329   549,129   —   —  
    Commercial and industrial1,271,343   1,263,279   1,313,405   1,455,497   1,343,475  
    Mortgage warehouse lines of credit1,084,001   1,017,501   769,157   437,257   274,659  
    Consumer17,991   18,729   17,363   18,828   20,971  
    Total LHFI5,724,773   5,612,666   5,312,194   4,481,185   4,143,195  
    Less: allowance for loan credit losses86,670   81,643   70,468   56,063   37,520  
    LHFI, net$5,638,103   $5,531,023   $5,241,726   $4,425,122   $4,105,675  
              
    Nonperforming assets         
    Nonperforming LHFI         
    Commercial real estate$3,704   $4,669   $4,717   $11,306   $6,994  
    Construction/land/land development2,962   2,976   3,726   3,850   4,337  
    Residential real estate6,530   8,259   6,713   4,076   5,132  
    Commercial and industrial12,897   14,255   14,772   13,619   14,520  
    Consumer56   69   119   181   163  
    Total nonperforming LHFI26,149   30,228   30,047   33,032   31,146  
    Nonperforming loans held for sale681   483   734   840   927  
    Total nonperforming loans26,830   30,711   30,781   33,872   32,073  
    Repossessed assets1,927   718   4,155   5,296   4,753  
    Total nonperforming assets$28,757   $31,429   $34,936   $39,168   $36,826  
    Classified assets$109,708   $101,577   $100,299   $79,980   $69,870  
    Past due LHFI (1)25,763   29,194   23,751   51,018   29,980  
              
    Allowance for loan credit losses         
    Balance at beginning of period$81,643   $70,468   $56,063   $37,520   $37,126  
    Impact of adopting ASC 326—   —   —   1,248   —  
    Provision for loan credit losses6,784   12,970   20,878   18,396   3,167  
    Loans charged off2,089   2,293   6,587   1,425   3,268  
    Loan recoveries332   498   114   324   495  
    Net charge-offs1,757   1,795   6,473   1,101   2,773  
    Balance at end of period$86,670   $81,643   $70,468   $56,063   $37,520  
              


    Origin Bancorp, Inc.
    Loan Data - Continued

    (Unaudited)December 31,
    2020    		 September 30,
    2020    		 June 30,
    2020    		 March 31,
    2020    		 December 31,
    2019
    Credit quality ratios         
    Total nonperforming assets to total assets0.38 % 0.44 % 0.53 % 0.65 % 0.69 %
    Total nonperforming loans to total loans0.45   0.53   0.57   0.74   0.76  
    Nonperforming LHFI to LHFI0.46   0.54   0.57   0.74   0.75  
    Past due LHFI to LHFI0.45   0.52   0.45   1.14   0.72  
    Allowance for loan credit losses to nonperforming LHFI331.45   270.09   234.53   169.72   120.46  
    Allowance for loan credit losses to total LHFI1.51   1.45   1.33   1.25   0.91  
    Allowance for loan credit losses to total LHFI excluding PPP and warehouse loans (2)2.10   2.00   1.75   1.37   0.96  
    Net charge-offs to total average LHFI (annualized)0.13   0.13   0.53   0.11   0.26  

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


    Origin Bancorp, Inc.
    Average Balances and Yields/Rates

     Three months ended
     December 31, 2020 September 30, 2020 December 31, 2019
     Average Balance Yield/Rate Average Balance Yield/Rate Average Balance Yield/Rate
    Assets(Dollars in thousands, unaudited)
    Commercial real estate$1,362,025   4.27 % $1,344,853   4.29 % $1,307,023   5.03 %
    Construction/land/land development533,756   4.21   575,080   4.42   526,494   5.20  
    Residential real estate853,299   4.25   787,247   4.35   694,436   4.95  
    Paycheck Protection Program ("PPP")551,325   2.38   550,377   2.49   —   —  
    Commercial and industrial excl. PPP1,242,018   3.83   1,295,105   4.09   1,356,316   4.88  
    Mortgage warehouse lines of credit897,716   3.81   723,876   3.87   262,392   4.47  
    Consumer18,575   6.06   18,209   6.27   20,889   6.68  
    LHFI5,458,714   3.89   5,294,747   4.02   4,167,550   4.95  
    Loans held for sale114,196   2.74   88,811   2.79   42,873   2.63  
    Loans receivable5,572,910   3.87   5,383,558   4.00   4,210,423   4.93  
    Investment securities-taxable662,527   1.90   539,993   2.00   437,626   2.41  
    Investment securities-nontaxable291,702   2.34   252,304   2.49   100,705   3.07  
    Non-marketable equity securities held in other financial institutions39,763   1.99   39,229   2.53   48,669   2.88  
    Interest-bearing balances due from banks236,772   0.28   204,288   0.24   139,508   1.77  
    Total interest-earning assets6,803,674   3.47 % 6,419,372   3.64 % 4,936,931   4.56 %
    Noninterest-earning assets(1)360,354     327,213     335,048    
    Total assets$7,164,028     $6,746,585     $5,271,979    
                
    Liabilities and Stockholders' Equity           
    Liabilities           
    Interest-bearing liabilities           
    Savings and interest-bearing transaction accounts$3,520,543   0.29 % $3,011,389   0.39 % $2,248,863   1.21 %
    Time deposits677,651   1.20   730,705   1.50   803,344   2.08  
    Total interest-bearing deposits4,198,194   0.43   3,742,094   0.61   3,052,207   1.44  
    FHLB advances and other borrowings339,027   1.57   532,689   1.17   342,000   1.62  
    Securities sold under agreements to repurchase8,467   0.09   10,506   0.10   18,198   0.65  
    Subordinated debentures144,475   4.66   78,585   4.69   9,668   5.67  
    Total interest-bearing liabilities4,690,163   0.64 % 4,363,874   0.75 % 3,422,073   1.46 %
    Noninterest-bearing liabilities           
    Noninterest-bearing deposits1,686,088     1,633,510     1,150,381    
    Other liabilities(1)148,269     119,668     101,600    
    Total liabilities6,524,520     6,117,052     4,674,054    
    Stockholders' Equity639,508     629,533     597,925    
    Total liabilities and stockholders' equity$7,164,028     $6,746,585     $5,271,979    
    Net interest spread  2.83 %   2.89 %   3.10 %
    Net interest margin  3.03 %   3.14 %   3.54 %
    Net interest margin - (tax- equivalent)(2)  3.07 %   3.18 %   3.58 %
    Net interest margin excluding PPP loans - (tax- equivalent)(3)  3.17 %   3.28 %   N/A

    ____________________________
    (1)   Includes Government National Mortgage Association ("GNMA") repurchase average balances of $61.9 million, $31.7 million, and $24.5 million for the three months ended December 31, 2020, September 30, 2020, and December 31, 2019, respectively. The GNMA repurchase asset and liability are recorded as equal offsetting amounts in the consolidated balance sheets, with the asset included in Loans held for sale and the liability included in FHLB advances and other borrowings.
    (2)   In order to present pre-tax income and resulting yields on tax-exempt investments comparable to those on taxable investments, a tax-equivalent adjustment has been computed. This adjustment also includes income tax credits received on Qualified School Construction Bonds.
    (3)   Net interest margin, excluding PPP loans, fully tax equivalent is calculated by removing average PPP loans from average interest earning assets, and removing the associated interest income (net of 35 basis points assumed cost of funds on average PPP loan balances) from net interest income.

    Origin Bancorp, Inc.
    Non-GAAP Financial Measures

    (Dollars in thousands, except per share amounts, unaudited)December 31,
    2020    		 September 30,
    2020    		 June 30,
    2020    		 March 31,
    2020    		 December 31,
    2019
    Calculation of Tangible Common Equity:         
    Total common stockholders' equity$647,150   $627,637   $614,781   $606,631    $599,262  
    Less: goodwill and other intangible assets, net30,480   30,717   30,953   31,241    31,540  
    Tangible Common Equity$616,670   $596,920   $583,828   $575,390    $567,722  
              
    Calculation of Tangible Book Value per Common Share:        
    Divided by common shares outstanding at the end of the period23,506,312   23,506,586   23,501,233   23,475,948    23,480,945  
    Tangible Book Value per Common Share$26.23   $25.39   $24.84   $24.51    $24.18  
              
    Calculation of PTPP Earnings:        
    Net Income$17,552   $13,095   $4,957   $753    $12,827  
    Plus: provision for credit losses6,333   13,633   21,403   18,531    2,377  
    Plus: income tax expense4,431   3,206   786   (427)  3,175  
    PTPP Earnings$28,316   $29,934   $27,146   $18,857    $18,379  
              
    Calculation of PTPP ROAA and PTPP ROAE:        
    PTPP Earnings$28,316   $29,934   $27,146   $18,857    $18,379  
    Divided by number of days in the quarter92   92   91   91    92  
    Multiplied by the number of days in the year366   366   366   366    365  
    Annualized PTPP Earnings$112,648   $119,085   $109,181   $75,842    $72,917  
              
    Divided by total average assets$7,164,028   $6,746,585   $6,447,526   $5,400,704    $5,271,979  
    PTPP ROAA (annualized)1.57 % 1.77 % 1.69 % 1.40  % 1.38 %
              
    Divided by total average stockholder's equity$639,508   $629,533   $617,898   $611,162    $597,925  
    PTPP ROAE (annualized)17.61 % 18.92 
    		% 17.67 % 12.41  % 12.19 %


    Origin Bancorp, Inc.
    Non-GAAP Financial Measures

     Year Ended December 31,
    (Dollars in thousands, except per share amounts, unaudited)2020 2019
    Calculation of PTPP Earnings:  
    Net Income$36,357   $53,882  
    Plus: provision for credit losses59,900   9,568  
    Plus: income tax expense7,996   12,666  
    PTPP Earnings$104,253   $76,116  
        
    Calculation of PTPP ROAA and PTPP ROAE:  
    PTPP Earnings$104,253   $76,116  
        
    Divided by total average assets$6,442,528   $5,092,971  
    PTPP ROAA1.62 % 1.49 %
        
    Divided by total average stockholder's equity$624,580   $580,945  
    PTPP ROAE
    		16.69 % 13.10 %

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