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CST: 20/08/2019 07:03:20   

Origin Bancorp, Inc. Reports Earnings for Second Quarter 2019

26 Days ago

RUSTON, La., July 24, 2019 (GLOBE NEWSWIRE) -- Origin Bancorp, Inc. (Nasdaq: OBNK) ("Origin" or the "Company"), the holding company for Origin Bank (the "Bank"), today announced net income of $12.3 million for the quarter ended June 30, 2019. This represents a decrease of $1.9 million from the quarter ended March 31, 2019, and a decrease of $419,000 from the quarter ended June 30, 2018. Diluted earnings per share for the quarter ended June 30, 2019, was $0.52, down $0.08 from the linked quarter and down $0.01 from the quarter ended June 30, 2018.

"We are pleased to report solid second quarter results which include double digit loan growth year over year, while maintaining sound credit quality, evidenced by stable nonperforming assets and low charge-offs in our loan portfolio," said Drake Mills, Chairman, President and CEO of Origin Bancorp, Inc. "Our team continues to execute on our strategies to drive loan and deposit growth, develop trusted relationships and leverage operational efficiencies. As we look forward to the remainder of 2019, we believe a strong loan pipeline and our strategy to attract low cost deposits helps position us for success."

Second Quarter 2019 Summary

  • Net interest income reached a historical quarterly high of $43.0 million for the quarter ended June 30, 2019, compared to $42.0 million for the quarter ended March 31, 2019, and $37.2 million for the quarter ended June 30, 2018.

  • Net income was $12.3 million for the quarter ended June 30, 2019 compared to $14.2 million for the linked quarter and $12.7 million for the quarter ended June 30, 2018.

  • Total loans held for investment were $3.98 billion, an increase of $146.3 million, or 3.8%, from March 31, 2019, and an increase of $612.5 million, or 18.2%, from June 30, 2018. The yield earned on total loans held for investment during the quarter ended June 30, 2019, was 5.29%, compared to 5.28% for the linked quarter and 4.89% for the quarter ended June 30, 2018.

  • Noninterest-bearing deposits increased by $25.6 million, or 2.6%, compared to the linked quarter, and increased by $53.4 million, or 5.6%, from June 30, 2018.  Total deposits decreased by $43.2 million, or 1.1%, from March 31, 2019, primarily related to the strategic decision to replace certain brokered deposits with FHLB advances,  and increased by $182.9 million, or 5.0%, from June 30, 2018. The average rate paid on interest-bearing deposits was 1.61% compared to 1.48% for the linked quarter and 1.01% for the quarter ended June 30, 2018.

  • Nonperforming loans held for investment to total loans held for investment was 0.76% at June 30, 2019, compared to 0.79% at both March 31, 2019, and June 30, 2018.

  • The Company opened two full service branches on April 1, 2019, and July 1, 2019.

  • The board of directors of the Company authorized a $40 million stock buyback program.

  • The Company increased its quarterly cash dividend by $0.06, from $0.0325 to $0.0925, payable in August 2019.

Results of Operations for the Three Months Ended June 30, 2019

Net Interest Income and Net Interest Margin

Net interest income for the quarter ended June 30, 2019, was $43.0 million, reflecting an increase of $943,000, or 2.2%, compared to the linked quarter. The increase was largely driven by increases in the average balance of loans held for investment and partially by the fact that the second quarter of 2019 had 91 days in the period compared to 90 days in the linked quarter. Interest-bearing deposit expense increased by $1.0 million compared to the quarter ended March 31, 2019, driven primarily by increases in rates on interest-bearing deposits. Average noninterest-bearing deposits increased by $45.5 million, or 4.7%, compared to the linked quarter and average interest-bearing deposits increased by $11.4 million, or 0.4%, compared to March 31, 2019.

The fully tax-equivalent net interest margin ("NIM") was 3.70% for the second quarter of 2019, a ten basis point decrease from the first quarter of 2019 and a four basis point decrease from the second quarter of 2018. The net interest spread was reduced by 14 basis points and 19 basis points, respectively, when compared to the three months ended March 31, 2019, and the three months ended June 30, 2018, primarily due to deposit pricing pressures, increases in Federal Home Loan Bank ("FHLB") borrowings and higher interest-bearing balances due from banks. The rate paid on total interest-bearing liabilities for the quarter ended June 30, 2019, was 1.68%, representing an increase of 13 basis points and 61 basis points compared to the linked quarter and the quarter ended June 30, 2018, respectively. The yield earned on interest-earning assets decreased one basis point and increased 42 basis points compared to the linked quarter and the quarter ended June 30, 2018, respectively. Our increase in interest-bearing balances due from banks was $41.4 million at June 30, 2019, or a 33.5% increase from March 31, 2019. Had we invested these funds in higher yielding assets, such as loans held for investment, we estimate that our NIM would have been approximately three basis points higher than currently reported.

Noninterest Income

Noninterest income for the quarter ended June 30, 2019, was $11.2 million, a decrease of $428,000, or 3.7%, from the linked quarter. The decrease in noninterest income over the linked quarter was primarily driven by decreases of $634,000 and $474,000 in other income and insurance commission and fee income, respectively.  These decreases were partially offset by a $646,000 increase in mortgage banking revenue.

The decrease in other income was largely driven by a decrease in the fair value of a non-marketable equity investment. The decrease in insurance commission and fee income was primarily driven by seasonal fluctuations as contingency income and renewal income typically experience a seasonal increase during the first quarter of each year. The increase in mortgage banking revenue compared to the linked quarter was primarily driven by increased volume in mortgage loan fundings, sales and growth in our mortgage pipeline.

Noninterest Expense

Noninterest expense for the quarter ended June 30, 2019, was $37.1 million, an increase of $1.7 million, or 4.8%, compared to the linked quarter. The increase over the linked quarter included increases of $368,000, $291,000, $225,000, and $223,000, in office and operations, advertising and marketing, other expense, and data processing expense, respectively. The increase in office and operations expense was primarily driven by a $223,000 increase in seasonal business development expenses. The increase in advertising and marketing expense was primarily due to promotions of our recently opened banking centers and the launch of a marketing campaign to promote a new deposit product. The increase in other expense was driven by expenditures that were not individually significant. The increase in data processing expense from the linked quarter was largely driven by system conversion costs and amortization expense incurred with the implementation of new lending software in the second quarter of 2019 which had been in process since the middle of 2018.

Financial Condition

Loans

Total loans held for investment at June 30, 2019, were $3.98 billion, an increase of $146.3 million, or 3.8%, compared to $3.84 billion at March 31, 2019, and an increase of $612.5 million, or 18.2%, compared to $3.37 billion at June 30, 2018.

For the quarter ended June 30, 2019, average loans held for investment were $3.89 billion, an increase of $128.4 million, or 3.4%, from $3.76 billion for the linked quarter. The quarter over quarter change primarily reflected increases of $56.1 million in mortgage warehouse loans driven by seasonality and higher refinancings during the period and $47.9 million in construction/land/land development loans reflecting increased funding for existing projects.

Deposits

Total deposits at June 30, 2019, were $3.86 billion, a decrease of $43.2 million, or 1.1%, compared to $3.90 billion at March 31, 2019, and an increase of $182.9 million, or 5.0%, compared to $3.67 billion, at June 30, 2018. The decrease in total deposits was primarily due to a strategic funding decision to replace certain brokered deposits with lower rate short-term advances from the FHLB. Absent our strategic decision to replace brokered deposits with short-term FHLB advances, total deposit growth would have been $143.8 million, or 3.7%, compared to March 31, 2019.

Average total deposits for the quarter ended June 30, 2019, increased by $56.9 million, or 1.5%, over the linked quarter, led by increases of $97.3 million, $43.0 million and $30.0 million in average money market business deposits, average noninterest-bearing business deposits and average money market consumer deposits, respectively. These increases were partially offset by declines of $85.5 million and $49.9 million in average brokered deposits as mentioned above and the seasonality of interest-bearing public fund deposits, respectively.

For the quarter ended June 30, 2019, average noninterest-bearing deposits as a percentage of total average deposits was 26.1%, compared to 25.3% for the quarter ended March 31, 2019, and 25.8% for the quarter ended June 30, 2018. The increase in noninterest-bearing deposits as a percentage of total deposits compared to the linked quarter was primarily driven by the reallocation of certain brokered deposits to short-term FHLB advances.

Borrowings

Average borrowings for the quarter ended June 30, 2019, increased by $100.3 million, or 29.8%, over the quarter ended March 31, 2019, and increased by $361.0 million over the quarter ended June 30, 2018. As discussed above, the increase in average borrowings in the second quarter of 2019 compared to the linked quarter was driven primarily by short-term FHLB advances totaling $270.0 million due to a strategic funding decision to replace certain brokered deposits with lower rate short-term advances from the FHLB.

Stockholders' Equity

Stockholders' equity was $584.3 million at June 30, 2019, compared to $568.1 million and $519.4 million at March 31, 2019, and June 30, 2018, respectively. Net income of $12.3 million and other comprehensive income of $4.1 million for the three months ended June 30, 2019, were the primary drivers of the increase in stockholders' equity compared to March 31, 2019.

Credit Quality

The Company recorded provision expense of $2.0 million for the quarter ended June 30, 2019, compared to provision expense of $1.0 million for the linked quarter and $311,000 for the quarter ended June 30, 2018. The increase in provision expense from the linked quarter was primarily due to loan growth of $146.3 million, or 3.8%, during the three months ended June 30, 2019, and to a lesser extent, net recoveries in the linked quarter, which offset the amount of provision expense needed to establish the allowance for loan losses at March 31, 2019. During the quarter ended June 30, 2019, we had net charge offs of $677,000 compared to net recoveries of $552,000 for the linked quarter. Total nonperforming loans held for investment were $30.5 million at June 30, 2019, compared to $30.3 million and $26.8 million at March 31, 2019 and June 30, 2018, respectively.

Allowance for loan losses as a percentage of total loans held for investment was 0.92% at June 30, 2019, compared to 0.93% and 1.01% at March 31, 2019, and June 30, 2018, respectively. Allowance for loan losses as a percentage of nonperforming loans held for investment was 120.36% at June 30, 2019, compared to 117.59% and 127.46% at March 31, 2019, and June 30, 2018, respectively.

Total past due loans held for investment, defined as loans 30 days past due or more, decreased by $6.0 million, or 15.7%, compared to the linked quarter. Commercial and industrial and residential real estate loans had the most significant improvements, reflecting decreases of $3.9 million and $1.2 million, respectively. Total past due loans held for investment as a percentage of loans held for investment was 0.80% at June 30, 2019, compared to 0.99% at March 31, 2019, and 1.22% at June 30, 2018.

Conference Call

Origin will hold a conference call to discuss its second quarter 2019 results on Thursday, July 25, 2019, 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/obnk190725.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 for Origin Bank, headquartered in Ruston, Louisiana, which provides a broad range of financial services to small and medium-sized businesses, municipalities, high net-worth individuals and retail clients from 43 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 any expected purchases of its outstanding common stock, and related transactions and other projections based on macroeconomic and industry trends, 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 preceded by, followed by or that otherwise include the words "assuming," "believes," "expects," "anticipates," "intends," "projects," "estimates," "plans" and similar expressions or future or conditional verbs such as "will," "should," "would," "may" and "could" 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: deterioration of Origin's asset quality; changes in 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; business and economic conditions generally and in the financial services industry, nationally and within Origin's primary market areas; Origin's ability to prudently manage its growth and execute its strategy; changes in management personnel; Origin's ability to maintain important deposit customer relationships; volatility and direction of market interest rates, which may increase funding costs or reduce interest-earning asset yields thus reducing margin; 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, including the effects of declines in housing markets; 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; the extensive federal and state regulation, supervision and examination governing almost every aspect of Origin's operations including changes in regulations affecting financial institutions, including the Dodd-Frank Wall Street Reform and Consumer Protection Act and the rules and regulations being issued in accordance with this statute and potential expenses associated with complying with such regulations; 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 our non-GAAP liquidity measurements and our underlying assumptions or estimates related to the impact on our net interest margin from changes in the average interest-bearing balances due from banks or other factors; possible changes in trade, monetary and fiscal policies, laws and regulations and other activities of governments, agencies, and similar organizations; and the effects of weather and natural disasters such as floods, droughts, wind, tornadoes and hurricanes as well as effects from geopolitical instability and manmade disasters. 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 ("SEC") 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, 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 Financial Data
   
  At and for the three months ended
  June 30,
 2019
  March 31,
 2019
  December 31,
 2018
  September 30,
 2018
  June 30,
 2018
                   
Income statement and share amounts (Dollars in thousands, except per share amounts, unaudited)
Net interest income $ 42,969     $ 42,026     $ 42,061     $ 39,497     $ 37,170  
Provision for credit losses 1,985     1,005     1,723     504     311  
Noninterest income 11,176     11,604     10,588     10,237     10,615  
Noninterest expense 37,095     35,381     35,023     34,344     32,012  
Income before income tax expense 15,065     17,244     15,903     14,886     15,462  
Income tax expense 2,782     3,089     2,725     2,568     2,760  
Net income $ 12,283     $ 14,155     $ 13,178     $ 12,318     $ 12,702  
Basic earnings per common share $ 0.52     $ 0.60     $ 0.56     $ 0.52     $ 0.54  
Diluted earnings per common share 0.52     0.60     0.55     0.52     0.53  
Dividends declared per common share 0.0325     0.0325     0.0325     0.0325     0.0325  
Weighted average common shares outstanding - basic 23,585,040     23,569,576     23,519,778     23,493,065     22,107,489  
Weighted average common shares outstanding - diluted 23,786,646     23,776,349     23,715,919     23,716,779     22,382,003  
                   
Balance sheet data                  
Total loans held for investment $ 3,984,597     $ 3,838,343     $ 3,789,105     $ 3,601,081     $ 3,372,096  
Total assets 5,119,625     4,872,201     4,821,576     4,667,564     4,371,792  
Total deposits 3,855,012     3,898,248     3,783,138     3,727,158     3,672,097  
Total stockholders' equity 584,293     568,122     549,779     531,919     519,356  
                   
Performance metrics and capital ratios                  
Yield on loans held for investment 5.29 %   5.28 %   5.17 %   5.00 %   4.89 %
Yield on interest earnings assets 4.85     4.86     4.75     4.58     4.43  
Rate on interest bearing deposits 1.61     1.48     1.31     1.16     1.01  
Rate on total deposits 1.19     1.11     0.96     0.85     0.75  
Net interest margin, fully tax equivalent 3.70     3.80     3.82     3.76     3.74  
Return on average stockholders' equity (annualized) 8.54     10.25     9.66     9.15     9.94  
Return on average assets (annualized) 0.98     1.18     1.10     1.08     1.17  
Efficiency ratio (1) 68.51     65.97     66.52     69.06     66.99  
Book value per common share $ 24.58     $ 23.92     $ 23.17     $ 22.52     $ 22.10  
Common equity tier 1 to risk-weighted assets (2) 11.93 %   12.05 %   11.94 %   11.79 %   12.35 %
Tier 1 capital to risk-weighted assets (2) 12.13     12.26     12.16     12.01     12.58  
Total capital to risk-weighted assets (2) 12.97     13.10     12.98     12.88     13.48  
Tier 1 leverage ratio (2) 11.10     11.23     11.21     11.34     11.63  

____________________________
(1) Calculated by dividing noninterest expense by the sum of net interest income plus noninterest income.
(2) June 30, 2019, 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 Financial Data
   
  Six months ended June 30,
(Dollars in thousands, except per share amounts) 2019   2018
Income statement and share amounts (Unaudited)   (Unaudited)
Net interest income $ 84,995     $ 71,894  
Provision (benefit)for credit losses 2,990     (1,213 )
Noninterest income 22,780     20,415  
Noninterest expense 72,476     61,869  
Income before income tax expense 32,309     31,653  
Income tax expense 5,871     5,544  
Net income $ 26,438     $ 26,109  
Basic earnings per common share (1) $ 1.12     $ 1.14  
Diluted earnings per common share(1) 1.11     1.13  
Dividends declared per common share 0.065     0.065  
Weighted average common shares outstanding - basic 23,577,335     20,451,960  
Weighted average common shares outstanding - diluted 23,781,358     20,726,474  
       
Performance metrics and capital ratios      
Return on average stockholders' equity 9.38 %   10.83 %
Return on average assets 1.08     1.23  
Efficiency ratio (2) 67.25     67.02  

____________________________
(1) Due to the impact of average preferred shares outstanding on the calculation of earnings per share, the sum of quarterly periods may not agree to the amount disclosed for the year-to-date period.
(2) Calculated by dividing noninterest expense by the sum of net interest income plus noninterest income.

 
Origin Bancorp, Inc.
Consolidated Balance Sheets
                   
(Dollars in thousands) June 30,
 2019
  March 31,
 2019
  December 31,
 2018
  September 30,
 2018
  June 30,
 2018
Assets (Unaudited)   (Unaudited)       (Unaudited)   (Unaudited)
Cash and due from banks $ 75,204     $ 66,312     $ 71,008     $ 60,716     $ 71,709  
Interest-bearing deposits in banks 124,356     44,928     45,670     59,721     97,865  
Federal funds sold             20,000      
Total cash and cash equivalents 199,560     111,240     116,678     140,437     169,574  
Securities:                  
Available for sale 548,980     563,826     575,644     585,788     507,513  
Held to maturity 28,897     19,033     19,169     19,602     19,731  
Securities carried at fair value through income 11,615     11,510     11,361     11,273     11,413  
Total securities 589,492     594,369     606,174     616,663     538,657  
Non-marketable equity securities held in other financial institutions 49,008     42,314     42,149     39,283     25,005  
Loans held for sale 58,408     42,265     52,210     50,658     62,072  
Loans 3,984,597     3,838,343     3,789,105     3,601,081     3,372,096  
Less: allowance for loan losses 36,683     35,578     34,203     35,727     34,151  
Loans, net of allowance for loan losses 3,947,914     3,802,765     3,754,902     3,565,354     3,337,945  
Premises and equipment, net 80,672     78,684     75,014     74,936     77,064  
Mortgage servicing rights 21,529     23,407     25,114     26,163     25,738  
Cash surrender value of bank-owned life insurance 33,070     32,888     32,706     32,487     28,326  
Goodwill and other intangible assets, net 32,144     32,497     32,861     33,228     24,113  
Accrued interest receivable and other assets 107,828     111,772     83,768     88,355     83,298  
Total assets $ 5,119,625     $ 4,872,201     $ 4,821,576     $ 4,667,564     $ 4,371,792  
Liabilities and Stockholders' Equity                  
Noninterest-bearing deposits $ 1,003,499     $ 977,919     $ 951,015     $ 976,260     $ 950,080  
Interest-bearing deposits 2,011,719     2,101,706     2,027,720     1,985,757     1,995,798  
Time deposits 839,794     818,623     804,403     765,141     726,219  
Total deposits 3,855,012     3,898,248     3,783,138     3,727,158     3,672,097  
FHLB advances and other borrowings 601,346     335,053     445,224     358,532     139,092  
Junior subordinated debentures 9,657     9,651     9,644     9,637     9,631  
Accrued expenses and other liabilities 69,317     61,127     33,791     40,318     31,616  
Total liabilities 4,535,332     4,304,079     4,271,797     4,135,645     3,852,436  
Commitments and contingencies                  
Stockholders' equity                  
Common stock 118,871     118,730     118,633     118,106     117,520  
Additional paid-in capital 243,002     242,579     242,041     240,832     238,260  
Retained earnings 216,801     205,289     191,585     179,178     167,628  
Accumulated other comprehensive income (loss) 5,619     1,524     (2,480 )   (6,197 )   (4,052 )
Total stockholders' equity 584,293     568,122     549,779     531,919     519,356  
Total liabilities and stockholders' equity $ 5,119,625     $ 4,872,201     $ 4,821,576     $ 4,667,564     $ 4,371,792  
                                       


 
Origin Bancorp, Inc.
Consolidated Quarterly Statements of Income
   
  Three months ended
  June 30,
 2019
  March 31,
 2019
  December 31,
 2018
  September 30,
 2018
  June 30,
 2018
                   
Interest and dividend income (Dollars in thousands, except per share amounts, unaudited)
Interest and fees on loans $ 51,461     $ 49,175     $ 47,819     $ 43,872     $ 40,219  
Investment securities-taxable 3,208     3,341     3,292     2,754     2,057  
Investment securities-nontaxable 871     858     996     1,129     1,156  
Interest and dividend income on assets held in other financial institutions 1,523     1,120     950     1,080     1,320  
Federal funds sold         1     7      
Total interest and dividend income 57,063     54,494     53,058     48,842     44,752  
Interest expense                  
Interest-bearing deposits 11,540     10,497     8,980     7,891     6,820  
FHLB advances and other borrowings 2,415     1,834     1,878     1,314     624  
Subordinated debentures 139     137     139     140     138  
Total interest expense 14,094     12,468     10,997     9,345     7,582  
Net interest income 42,969     42,026     42,061     39,497     37,170  
Provision for credit losses 1,985     1,005     1,723     504     311  
Net interest income after provision for credit losses 40,984     41,021     40,338     38,993     36,859  
Noninterest income                  
Service charges and fees 3,435     3,316     3,349     3,234     3,157  
Mortgage banking revenue 3,252     2,606     2,288     2,621     2,317  
Insurance commission and fee income 3,036     3,510     2,481     3,306     1,826  
Loss on sales of securities, net         (8 )        
(Loss) gain on sales and disposals of other assets, net (166 )   3     (23 )   (207 )   121  
Other fee income 360     276     592     364     403  
Other income 1,259     1,893     1,909     919     2,791  
Total noninterest income 11,176     11,604     10,588     10,237     10,615  
Noninterest expense                  
Salaries and employee benefits 22,764     22,613     21,333     21,054     19,859  
Occupancy and equipment, net 4,200     4,044     3,830     4,169     3,793  
Data processing 1,810     1,587     1,839     1,523     1,347  
Electronic banking 892     689     699     761     680  
Communications 647     586     513     490     510  
Advertising and marketing 1,089     798     1,351     1,245     1,022  
Professional services 839     904     1,024     982     598  
Regulatory assessments 691     711     666     411     660  
Loan related expenses 790     669     810     718     798  
Office and operations 1,849     1,481     1,516     1,499     1,588  
Other expenses 1,524     1,299     1,442     1,492     1,157  
Total noninterest expense 37,095     35,381     35,023     34,344     32,012  
Income before income tax expense 15,065     17,244     15,903     14,886     15,462  
Income tax expense 2,782     3,089     2,725     2,568     2,760  
Net income $ 12,283     $ 14,155     $ 13,178     $ 12,318     $ 12,702  
Basic earnings per common share $ 0.52     $ 0.60     $ 0.56     $ 0.52     $ 0.54  
Diluted earnings per common share 0.52     0.60     0.55     0.52     0.53  
                             


 
Origin Bancorp, Inc.
Loan Data
   
  At and for the three months ended
Loans held for investment June 30,
 2019
  March 31,
 2019
  December 31,
 2018
  September 30,
 2018
  June 30,
 2018
                   
Loans secured by real estate: (Dollars in thousands, unaudited)
Commercial real estate $ 1,219,470     $ 1,202,269     $ 1,228,402     $ 1,162,274     $ 1,091,581  
Construction/land/land development 524,999     488,167     429,660     406,249     380,869  
Residential real estate 651,988     638,064     629,714     585,931     563,016  
Total real estate 2,396,457     2,328,500     2,287,776     2,154,454     2,035,466  
Commercial and industrial 1,341,652     1,287,300     1,272,566     1,193,035     1,046,488  
Mortgage warehouse lines of credit 224,939     202,744     207,871     233,325     270,494  
Consumer 21,549     19,799     20,892     20,267     19,648  
Total loans held for investment 3,984,597     3,838,343     3,789,105     3,601,081     3,372,096  
Less: Allowance for loan losses 36,683     35,578     34,203     35,727     34,151  
Loans held for investment, net $ 3,947,914     $ 3,802,765     $ 3,754,902     $ 3,565,354     $ 3,337,945  
                   
Nonperforming assets                  
Nonperforming loans held for investment                  
Commercial real estate $ 9,423     $ 8,622     $ 8,281     $ 8,851     $ 8,712  
Construction/land/land development 1,111     922     935     960     1,197  
Residential real estate 4,978     5,196     6,668     7,220     7,713  
Commercial and industrial 14,810     15,309     15,792     9,285     8,831  
Consumer 156     206     180     238     340  
Total nonperforming loans held for investment 30,478     30,255     31,856     26,554     26,793  
Nonperforming loans held for sale 2,049     1,390     741     1,391     1,949  
Total nonperforming loans 32,527     31,645     32,597     27,945     28,742  
Repossessed assets 3,554     3,659     3,739     3,306     654  
Total nonperforming assets $ 36,081     $ 35,304     $ 36,336     $ 31,251     $ 29,396  
Classified assets $ 80,124     $ 77,619     $ 82,914     $ 80,092     $ 87,289  
Past due loans held for investment (1) 31,884     37,841     34,085     24,846     13,112  
                   
Allowance for loan losses                  
Balance at beginning of period $ 35,578     $ 34,203     $ 35,727     $ 34,151     $ 34,132  
Provision (benefit) for loan losses 1,782     823     1,886     1,113     140  
Loans charged off 840     608     3,583     1,009     794  
Loan recoveries 163     1,160     173     1,472     673  
Net (recoveries) charge offs 677     (552 )   3,410     (463 )   121  
Balance at end of period $ 36,683     $ 35,578     $ 34,203     $ 35,727     $ 34,151  
                   
Credit quality ratios                  
Total nonperforming assets to total assets 0.70 %   0.72 %   0.75 %   0.67 %   0.67 %
Total nonperforming loans to total loans 0.80     0.82     0.85     0.77     0.84  
Nonperforming loans held for investment to loans held for investment 0.76     0.79     0.84     0.74     0.79  
Past due loans held for investment to loans held for investment 0.80     0.99     0.90     0.69     0.39  
Allowance for loan losses to nonperforming loans held for investment 120.36     117.59     107.37     134.54     127.46  
Allowance for loan losses to total loans held for investment 0.92     0.93     0.90     0.99     1.01  
Net charge offs (recoveries) to total average loans held for investment (annualized) 0.07     (0.06 )   0.37     (0.05 )   0.01  

____________________________
(1) Past due loans held for investment are defined as loans 30 days past due or more.

 
Origin Bancorp, Inc.
Average Balances and Yields/Rates
   
  Three months ended
  June 30, 2019   March 31, 2019   June 30, 2018
  Average
Balance
  Yield/Rate   Average
Balance
  Yield/Rate   Average
Balance
  Yield/Rate
                       
Assets (Dollars in thousands, unaudited)
Commercial real estate $ 1,209,645     5.16 %   $ 1,214,682     5.17 %   $ 1,090,888     4.82 %
Construction/land/land development 505,119     5.70     457,175     5.74     351,342     5.33  
Residential real estate 640,123     4.90     634,287     4.81     586,956     4.57  
Commercial and industrial 1,310,611     5.36     1,287,461     5.35     1,024,981     4.85  
Mortgage warehouse lines of credit 203,524     5.45     147,453     5.63     208,809     5.33  
Consumer 20,902     7.01     20,482     6.83     20,774     6.83  
Loans held for investment 3,889,924     5.29     3,761,540     5.28     3,283,750     4.89  
Loans held for sale 23,927     3.45     17,687     4.05     20,491     3.88  
Loans Receivable 3,913,851     5.27     3,779,227     5.28     3,304,241     4.88  
Investment securities-taxable 492,169     2.61     498,733     2.68     363,960     2.26  
Investment securities-nontaxable 103,485     3.37     101,794     3.37     128,504     3.60  
Non-marketable equity securities held in other financial institutions 44,974     3.80     42,161     2.90     23,040     4.80  
Interest-bearing balances due from banks 164,686     2.67     123,326     2.69     235,299     1.78  
Total interest-earning assets 4,719,165     4.85     4,545,241     4.86     4,055,044     4.43  
Noninterest-earning assets(1) 324,786         325,807         311,279      
Total assets $ 5,043,951         $ 4,871,048         $ 4,366,323      
                       
Liabilities and Stockholders' Equity                      
Liabilities                      
Interest-bearing liabilities                      
Savings and interest-bearing transaction accounts $ 2,050,058     1.39 %   $ 2,020,440     1.26 %   $ 2,017,453     0.88 %
Time deposits 830,399     2.13     848,629     2.03     699,765     1.36  
Total interest-bearing deposits 2,880,457     1.61     2,869,069     1.48     2,717,218     1.01  
Federal funds purchased 118     2.89     19     2.89          
FHLB advances 436,142     2.11     335,891     2.05     75,189     3.04  
Securities sold under agreements to repurchase 34,049     1.36     39,757     1.39     30,233     0.71  
Subordinated debentures 9,654     5.69     9,647     5.78     9,628     5.67  
Total interest-bearing liabilities 3,360,420     1.68     3,254,383     1.55     2,832,268     1.07  
Noninterest-bearing deposits 1,018,081         972,617         942,533      
Other liabilities(1) 88,689         83,957         79,141      
Total liabilities 4,467,190         4,310,957         3,853,942      
Stockholders' Equity 576,761         560,091         512,381      
Total liabilities and stockholders' equity $ 5,043,951         $ 4,871,048         $ 4,366,323      
Net interest spread     3.17 %       3.31 %       3.36 %
Net interest margin     3.65 %       3.75 %       3.68 %
Net interest income margin - (tax- equivalent)(2)     3.70 %       3.80 %       3.74 %

____________________________
(1) Includes Government National Mortgage Association ("GNMA") repurchase average balances of $25.8 million, $30.1 million and $29.3 million for the three months ended June 30, 2019, March 31, 2019, and June 30, 2018, 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.

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