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CST: 20/08/2019 07:14:57   

Origin Bancorp, Inc. Reports Record Earnings for First Quarter 2019

117 Days ago

RUSTON, La., April 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 $14.2 million for the quarter ended March 31, 2019. This represents an increase of $977,000 from the quarter ended December 31, 2018, and an increase of $748,000 from the quarter ended March 31, 2018. Diluted earnings per share for the quarter ended March 31, 2019, was $0.60, up $0.05 from the linked quarter and unchanged from the quarter ended March 31, 2018.

"We are pleased to report another successful quarter, marking a strong start for 2019," 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. Despite deposit pricing pressure, we remain focused on attracting low cost deposits to fund loan growth and we anticipate that our strategy coupled with deposit-gathering incentives for our bankers will help us realize this objective as we move forward into 2019."

First Quarter 2019 Highlights

  • Net income reached a historical quarterly high of $14.2 million for the quarter ended March 31, 2019, compared to $13.2 million for the quarter ended December 31, 2018, and $13.4 million for the quarter ended March 31, 2018.
  • Total loans held for investment were $3.84 billion, an increase of $49.2 million, or 1.3%, from December 31, 2018, and an increase of $592.4 million, or 18.2%, from March 31, 2018. The yield earned on total loans held for investment during the quarter ended March 31, 2019, was 5.28%, compared to 5.17% for the linked quarter and 4.73% for the quarter ended March 31, 2018.
  • Total deposits increased by $115.1 million, or 3.0%, from December 31, 2018, and increased by $317.5 million, or 8.9%, from March 31, 2018. The average rate paid on our interest-bearing deposits was 1.48% compared to 1.31% for the linked quarter and 0.90% for the quarter ended March 31, 2018.
  • The Company's efficiency ratio improved slightly to 65.97% for the quarter ended March 31, 2019, compared to 66.52% for the quarter ended December 31, 2018, and 67.06% for the quarter ended March 31, 2018.
  • Nonperforming loans held for investment to total loans held for investment was 0.79% at March 31, 2019, compared to 0.84% and 0.83% at December 31, 2018 and March 31, 2018, respectively.
  • The Company opened a new full service branch on April 1, 2019, in the Dallas/Fort Worth metroplex.

Results of Operations for the Three Months Ended March 31, 2019

Net Interest Income and Net Interest Margin

Net interest income for the quarter ended March 31, 2019, was $42.0 million, reflecting a marginal decrease compared to the linked quarter partially due to the fact that the first quarter of 2019 had 90 days in the period compared to 92 days in the linked quarter of 2018. The daily average net interest income increase was 2.1% when comparing the quarter ended March 31, 2019, to the quarter ended December 31, 2018. Interest-bearing deposit expense increased by $1.5 million compared to the quarter ended December 31, 2018, driven primarily by increases in rates on interest-bearing deposits. With the 25 basis point increase in the overnight rate by the Federal Reserve in December 2018, the Company experienced pressure on deposit costs on new accounts primarily in its key metropolitan markets. Additionally, the deposit mix shifted slightly, as the Company's percentage of average noninterest-bearing deposits to total deposits decreased to 25.3% for the quarter ended March 31, 2019, compared to 26.9% for the quarter ended December 31, 2018. Average interest-bearing deposits increased by $146.3 million, or 5.4%, compared to the linked quarter, while average noninterest-bearing deposits decreased by $28.4 million, or 2.8%, compared to the same period. Interest income increased by $1.4 million, driven by increases in average balances of real estate and commercial and industrial loans, offset by a decrease in the average balance of mortgage warehouse lines of credit. The decrease in mortgage warehouse lines of credit was driven by seasonality along with a strategic exit of several customer relationships.

Net interest income increased $7.3 million, or 21.0%, compared to the quarter ended March 31, 2018, primarily due to increases of $11.7 million and $1.3 million in interest income earned on loans and investment securities, respectively. The increase in interest income earned on loans was primarily driven by increases in average balances and yields earned on the Company's commercial and industrial and commercial real estate loan portfolios. The increase in investment securities was driven primarily by increases in the average balance of investment securities, which increased by $188.2 million, or 60.6%, compared to the quarter ended March 31, 2018. The increase in net interest income was partially offset by higher costs of funding, mostly as a result of increases in market interest rates impacting deposit accounts, as well as an increase in the average balance of outstanding borrowings, which was primarily driven by a $250.0 million FHLB advance obtained in the third quarter of 2018 which was re-deployed into higher yielding interest-earning assets and replaced higher rate FHLB advances ("leverage transaction").

The rate paid on total interest-bearing liabilities for the quarter ended March 31, 2019, was 1.55%, representing an increase of 16 basis points and 58 basis points compared to the linked quarter and the quarter ended March 31, 2018, respectively. Additionally, average balances of total interest-bearing liabilities increased by $126.1 million and $448.5 million compared to the linked quarter and the quarter ended March 31, 2018, respectively. The primary driver of the increase in the average balance of interest-bearing liabilities compared to the linked quarter was an increase of public fund balances, which increased by $130.3 million, and seasonal deposit fluctuation typically experienced in the first quarter of each year. The primary drivers of the increase in average interest-bearing liabilities compared to the prior year quarter were increases in average FHLB borrowings of $260.5 million and average interest-bearing deposits of $177.0 million. The average rate paid on interest-bearing deposits was 1.48% for the quarter ended March 31, 2019, representing an increase of 17 basis points compared to the linked quarter and an increase of 58 basis points compared to the prior year quarter. The increase in average balances in borrowings in the current period compared to the quarter ended March 31, 2018, was largely due to our previously mentioned leverage transaction.

Noninterest Income

Noninterest income for the quarter ended March 31, 2019, was $11.6 million, an increase of $1.0 million, or 9.6%, from the linked quarter. The increase in noninterest income over the linked quarter was primarily driven by increases of $1.0 million and $318,000 in insurance commission and fee income and mortgage banking revenue, respectively. The increase in insurance commission and fee income was caused by typical seasonality of insurance revenue. The increase in mortgage banking revenue was driven by an increase in the value of our mortgage pipeline compared to the change in value of the pipeline during the linked quarter. The overall increase in noninterest income was partially offset by a decrease of $316,000 in other fee income, driven primarily by decreases in unused line of credit fee income and letter of credit fee income of $191,000 and $98,000, respectively.

Noninterest income for the quarter ended March 31, 2019, increased by $1.8 million, or 18.4%, compared to the quarter ended March 31, 2018. The increase was primarily driven by an increase of $1.4 million in insurance commission and fee income driven by our increased presence in north Louisiana after the RCF acquisition in July 2018.

Noninterest Expense

Noninterest expense for the quarter ended March 31, 2019, was $35.4 million, an increase of $358,000, or 1.0%, compared to the linked quarter. The increase was largely driven by an increase in salaries and employee benefit expenses of $1.3 million due primarily by increases in incentive compensation and medical insurance of $468,000 and $361,000, respectively. The increase in total noninterest expense was partially offset by a $553,000 decrease in advertising and marketing expenses due to a marketing campaign that ended in the fourth quarter of 2018.

Noninterest expense for the quarter ended March 31, 2019, increased by $5.5 million, or 18.5%, from the quarter ended March 31, 2018, driven primarily by increases of $4.4 million in salaries and employee benefits, $391,000 in net occupancy expenses and $239,000 in professional fees largely due to the addition of the Houston lift-out team, Dallas and Shreveport lending professionals and the RCF acquisition in July 2018. The increase in net occupancy expense was driven by locations acquired in the RCF acquisition, as well as our opening of a new banking center in the third quarter of 2018, and build-out related to a new branch that we expect to open in the second quarter of 2019.

Financial Condition

Loans

Total loans held for investment at March 31, 2019, were $3.84 billion, an increase of $49.2 million, or 1.3%, compared to $3.79 billion at December 31, 2018, and an increase of $592.4 million, or 18.2%, compared to $3.25 billion at March 31, 2018.

For the quarter ended March 31, 2019, average loans held for investment were $3.76 billion, an increase of $111.6 million, or 3.1%, from $3.65 billion for the linked quarter. This increase was driven by our continued efforts to pursue quality lending opportunities, and included increases of $117.8 million and $35.5 million in average total real estate and commercial and industrial loans, respectively. Average mortgage warehouse loans decreased $40.3 million, or 21.5%, to $147.5 million at March 31, 2019, from December 31, 2018, due to the seasonality of these loans and the strategic exit of certain customer relationships.

Compared to the quarter ended March 31, 2018, average loans held for investment increased by $575.3 million, or 18.1%. This increase included average growth of $285.6 million in commercial and industrial loans, and an almost equal increase in construction/land/land development and commercial real estate loans totaling $258.8 million.

Deposits

Total deposits at March 31, 2019, were $3.90 billion, an increase of $115.1 million, or 3.0%, compared to $3.78 billion at December 31, 2018, and an increase of $317.5 million, or 8.9%, compared to $3.58 billion, at March 31, 2018.

Average total deposits for the quarter ended March 31, 2019, increased by $117.9 million, or 3.2%, over the linked quarter, led by increases of $130.3 million and $34.4 million in average public fund deposits and average brokered deposits, respectively. The increases in public funds deposits are seasonal with amounts expected to slowly run off in the following two quarters. These increases were partially offset by a $28.3 million decline in average noninterest-bearing commercial deposits. Overall, average interest-bearing deposits increased by $146.3 million, or 5.4%, and average noninterest-bearing deposits decreased by $28.4 million, or 2.8% over the linked quarter.

Average deposits for the quarter ended March 31, 2019, increased by $285.0 million, or 8.0%, over the prior year quarter. Increases of $102.4 million, $95.1 million, and $92.7 million in average noninterest-bearing commercial deposits, average public fund deposits and average consumer time deposits, respectively, were offset by a decrease of $112.0 million in total money market business deposits, when comparing the year over year quarterly periods.

Borrowings

Average borrowings for the quarter ended March 31, 2019, decreased by $22.9 million, or 6.4%, over the quarter ended December 31, 2018, and increased by $260.5 million over the quarter ended March 31, 2018. The decrease in average borrowings in the first quarter of 2019 compared to the linked quarter was due to an increase in liquidity primarily from increased public fund deposits and increased deposit gathering activity. The increase in average borrowings in the current quarter compared to the quarter ended March 31, 2018, was driven by the previously mentioned $250.0 million leverage transaction that occurred in August 2018.

Stockholders' Equity

Stockholders' equity was $568.1 million at March 31, 2019, compared to $549.8 million and $462.8 million at December 31, 2018, and March 31, 2018, respectively. Net income of $14.2 million and other comprehensive income of $4.0 million for the three months ended March 31, 2019, was the primary driver of the increase in stockholders' equity compared to December 31, 2018.

The $105.3 million increase in stockholders' equity for the quarter ended March 31, 2019, when compared to the same quarter in 2018, was largely due to the completion of the Company's initial public offering in May 2018. In connection with the offering, the Company issued 3,045,426 shares and received net proceeds, before expenses, totaling $96.3 million, a portion of which was used to redeem all outstanding shares of its Senior Non-Cumulative Perpetual Preferred Stock, Series SBLF at an aggregate redemption price of $49.1 million. Also, during the quarter ended June 30, 2018, all of the 901,644 shares of the Company's outstanding Series D preferred stock were converted into shares of its common stock, on a one-for-one basis. As a result, no shares of Series D preferred stock were outstanding at March 31, 2019. Net income for the four quarterly periods including the quarter ended March 31, 2019, totaling $52.4 million also contributed to the increase in stockholders' equity compared to March 31, 2018.

Credit Quality

The Company recorded provision expense of $1.0 million for the quarter ended March 31, 2019, compared to provision expense of $1.7 million for the linked quarter and a benefit for credit losses of $1.5 million for the quarter ended March 31, 2018. The decrease in provision expense from the linked quarter was due to an increase in loan recoveries which offset the amount of provision required to establish the required allowance for loan losses. During the quarter ended March 31, 2019, we had net recoveries of $552,000 compared to net charge offs of $3.4 million for the linked quarter. The release of provision in the quarter ended March 31, 2018, was due primarily to paydowns and improvement in certain collateral-dependent impaired loans. The reserve on impaired loans decreased by $3.1 million at March 31, 2019, compared to March 31, 2018.

At March 31, 2019, total nonperforming loans held for investment were $30.3 million, representing a decrease of $1.6 million, or 5.0%, from the linked quarter. Nonperforming loans held for investment increased by $3.2 million, or 12.0%, from $27.0 million at March 31, 2018, primarily due to downgrades associated with two commercial lending relationships.

Allowance for loan losses as a percentage of total loans held for investment was 0.93% at March 31, 2019, compared to 0.90% and 1.05% at December 31, 2018, and March 31, 2018, respectively. Allowance for loan losses as a percentage of nonperforming loans held for investment was 117.59% at March 31, 2019, compared to 107.37% and 126.37% at December 31, 2018, and March 31, 2018, respectively.

Conference Call

Origin will hold a conference call to discuss its first quarter 2019 results on Thursday, April 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/obnk190425.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 42 banking centers, located from Dallas/Fort Worth, Texas across North Louisiana to Central Mississippi, as well as in Houston, Texas. For more information, visit https://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, 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 "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; 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 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
  March 31,
 2019
  December 31,
2018
  September 30,
2018
  June 30,
 2018
  March 31,
 2018
                   
Income statement and share amounts (Dollars in thousands, except per share amounts, unaudited)
Net interest income $ 42,026     $ 42,061     $ 39,497     $ 37,170     $ 34,724  
Provision (benefit) for credit losses 1,005     1,723     504     311     (1,524 )
Noninterest income 11,604     10,588     10,237     10,615     9,800  
Noninterest expense 35,381     35,023     34,344     32,012     29,857  
Income before income tax expense 17,244     15,903     14,886     15,462     16,191  
Income tax expense 3,089     2,725     2,568     2,760     2,784  
Net income $ 14,155     $ 13,178     $ 12,318     $ 12,702     $ 13,407  
Basic earnings per common share $ 0.60     $ 0.56     $ 0.52     $ 0.54     $ 0.60  
Diluted earnings per common share 0.60     0.55     0.52     0.53     0.60  
Dividends declared per common share 0.0325     0.0325     0.0325     0.0325     0.0325  
Weighted average common shares outstanding - basic 23,569,576     23,519,778     23,493,065     22,107,489     19,459,278  
Weighted average common shares outstanding - diluted 23,776,349     23,715,919     23,716,779     22,382,003     19,675,473  
                   
Balance sheet data                  
Total loans held for investment $ 3,838,343     $ 3,789,105     $ 3,601,081     $ 3,372,096     $ 3,245,992  
Total assets 4,872,201     4,821,576     4,667,564     4,371,792     4,214,899  
Total deposits 3,898,248     3,783,138     3,727,158     3,672,097     3,580,738  
Total stockholders' equity 568,122     549,779     531,919     519,356     462,824  
                   
Performance metrics and capital ratios                  
Yield on loans held for investment 5.28 %   5.17 %   5.00 %   4.89 %   4.73 %
Yield on interest earnings assets 4.86     4.75     4.58     4.43     4.31  
Rate on interest bearing deposits 1.48     1.31     1.16     1.01     0.90  
Rate on total deposits 1.11     0.96     0.85     0.75     0.68  
Net interest margin, fully tax equivalent 3.80     3.82     3.76     3.74     3.68  
Return on average stockholders' equity (annualized) 10.25     9.66     9.15     9.94     11.82  
Return on average assets (annualized) 1.18     1.10     1.08     1.17     1.30  
Efficiency ratio (1) 65.97     66.52     69.06     66.99     67.06  
Book value per common share $ 23.92     $ 23.17     $ 22.52     $ 22.10     $ 20.36  
Common equity tier 1 to risk-weighted assets (2) 12.05 %   11.94 %   11.79 %   12.35 %   9.64 %
Tier 1 capital to risk-weighted assets (2) 12.26     12.16     12.01     12.58     11.59  
Total capital to risk-weighted assets (2) 13.10     12.98     12.88     13.48     12.53  
Tier 1 leverage ratio (2) 11.23     11.21     11.34     11.63     10.65  

____________________________
(1)  Calculated by dividing noninterest expense by the sum of net interest income plus noninterest income.
(2)  March 31, 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.
Consolidated Balance Sheets
 
(Dollars in thousands) March 31,
 2019
  December 31,
 2018
  September 30,
 2018
  June 30,
 2018
  March 31,
 2018
Assets (Unaudited)       (Unaudited)   (Unaudited)   (Unaudited)
Cash and due from banks $ 66,312     $ 71,008     $ 60,716     $ 71,709     $ 52,989  
Interest-bearing deposits in banks 44,928     45,670     59,721     97,865     194,268  
Federal funds sold         20,000          
Total cash and cash equivalents 111,240     116,678     140,437     169,574     247,257  
Securities:                  
Available for sale 563,826     575,644     585,788     507,513     414,157  
Held to maturity 19,033     19,169     19,602     19,731     19,860  
Securities carried at fair value through income 11,510     11,361     11,273     11,413     11,723  
Total securities 594,369     606,174     616,663     538,657     445,740  
Non-marketable equity securities held in other financial institutions 42,314     42,149     39,283     25,005     22,995  
Loans held for sale 42,265     52,210     50,658     62,072     48,988  
Loans 3,838,343     3,789,105     3,601,081     3,372,096     3,245,992  
Less: allowance for loan losses 35,578     34,203     35,727     34,151     34,132  
Loans, net of allowance for loan losses 3,802,765     3,754,902     3,565,354     3,337,945     3,211,860  
Premises and equipment, net 78,684     75,014     74,936     77,064     76,648  
Mortgage servicing rights 23,407     25,114     26,163     25,738     25,999  
Cash surrender value of bank-owned life insurance 32,888     32,706     32,487     28,326     28,185  
Goodwill and other intangible assets, net 32,497     32,861     33,228     24,113     24,219  
Accrued interest receivable and other assets 111,772     83,768     88,355     83,298     83,008  
Total assets $ 4,872,201     $ 4,821,576     $ 4,667,564     $ 4,371,792     $ 4,214,899  
Liabilities and Stockholders' Equity                  
Noninterest-bearing deposits $ 977,919     $ 951,015     $ 976,260     $ 950,080     $ 885,883  
Interest-bearing deposits 2,101,706     2,027,720     1,985,757     1,995,798     2,071,626  
Time deposits 818,623     804,403     765,141     726,219     623,229  
Total deposits 3,898,248     3,783,138     3,727,158     3,672,097     3,580,738  
FHLB advances and other borrowings 335,053     445,224     358,532     139,092     132,224  
Junior subordinated debentures 9,651     9,644     9,637     9,631     9,625  
Accrued expenses and other liabilities 61,127     33,791     40,318     31,616     29,488  
Total liabilities 4,304,079     4,271,797     4,135,645     3,852,436     3,752,075  
Commitments and contingencies                 34,991  
Stockholders' equity                  
Preferred stock - series SBLF                 48,260  
Preferred stock - series D                 16,998  
Common stock 118,730     118,633     118,106     117,520     97,626  
Additional paid-in capital 242,579     242,041     240,832     238,260     146,201  
Retained earnings 205,289     191,585     179,178     167,628     156,498  
Accumulated other comprehensive income (loss) 1,524     (2,480 )   (6,197 )   (4,052 )   (2,759 )
  568,122     549,779     531,919     519,356     462,824  
Less: Retirement Plan-owned shares                 34,991  
Total stockholders' equity 568,122     549,779     531,919     519,356     427,833  
Total liabilities and stockholders' equity $ 4,872,201     $ 4,821,576     $ 4,667,564     $ 4,371,792     $ 4,214,899  


   
Origin Bancorp, Inc.
Consolidated Quarterly Statements of Income
   
  Three months ended
  March 31,
 2019
  December 31,
 2018
  September 30,
 2018
  June 30,
 2018
  March 31,
 2018
                   
Interest and dividend income (Dollars in thousands, except per share amounts, unaudited)
Interest and fees on loans $ 49,175     $ 47,819     $ 43,872     $ 40,219     $ 37,474  
Investment securities-taxable 3,341     3,292     2,754     2,057     1,740  
Investment securities-nontaxable 858     996     1,129     1,156     1,184  
Interest and dividend income on assets held in other financial institutions 1,120     950     1,080     1,320     1,046  
Federal funds sold     1     7          
Total interest and dividend income 54,494     53,058     48,842     44,752     41,444  
Interest expense                  
Interest-bearing deposits 10,497     8,980     7,891     6,820     5,980  
FHLB advances and other borrowings 1,834     1,878     1,314     624     604  
Subordinated debentures 137     139     140     138     136  
Total interest expense 12,468     10,997     9,345     7,582     6,720  
Net interest income 42,026     42,061     39,497     37,170     34,724  
Provision (benefit) for credit losses 1,005     1,723     504     311     (1,524 )
Net interest income after provision (benefit) for credit losses 41,021     40,338     38,993     36,859     36,248  
Noninterest income                  
Service charges and fees 3,316     3,349     3,234     3,157     3,014  
Mortgage banking revenue 2,606     2,288     2,621     2,317     2,394  
Insurance commission and fee income 3,510     2,481     3,306     1,826     2,107  
Loss on sales of securities, net     (8 )            
Gain (loss) on sales and disposals of other assets, net 3     (23 )   (207 )   121     (61 )
Other fee income 276     592     364     403     452  
Other income 1,893     1,909     919     2,791     1,894  
Total noninterest income 11,604     10,588     10,237     10,615     9,800  
Noninterest expense                  
Salaries and employee benefits 22,613     21,333     21,054     19,859     18,241  
Occupancy and equipment, net 4,044     3,830     4,169     3,793     3,653  
Data processing 1,587     1,839     1,523     1,347     1,473  
Electronic banking 689     699     761     680     743  
Communications 586     513     490     510     515  
Advertising and marketing 798     1,351     1,245     1,022     657  
Professional services 904     1,024     982     598     665  
Regulatory assessments 711     666     411     660     720  
Loan related expenses 669     810     718     798     713  
Office and operations 1,481     1,516     1,499     1,588     1,278  
Other expenses 1,299     1,442     1,492     1,157     1,199  
Total noninterest expense 35,381     35,023     34,344     32,012     29,857  
Income before income tax expense 17,244     15,903     14,886     15,462     16,191  
Income tax expense 3,089     2,725     2,568     2,760     2,784  
Net income $ 14,155     $ 13,178     $ 12,318     $ 12,702     $ 13,407  
Basic earnings per common share $ 0.60     $ 0.56     $ 0.52     $ 0.54     $ 0.60  
Diluted earnings per common share 0.60     0.55     0.52     0.53     0.60  


 
Origin Bancorp, Inc.
Loan Data
 
  At and for the three months ended
Loans held for investment March 31,
 2019
  December 31,
 2018
  September 30,
 2018
  June 30,
 2018
  March 31,
 2018
                   
Loans secured by real estate: (Dollars in thousands, unaudited)
Commercial real estate $ 1,202,269     $ 1,228,402     $ 1,162,274     $ 1,091,581     $ 1,096,948  
Construction/land/land development 488,167     429,660     406,249     380,869     340,684  
Residential real estate 638,064     629,714     585,931     563,016     583,461  
Total real estate 2,328,500     2,287,776     2,154,454     2,035,466     2,021,093  
Commercial and industrial 1,287,300     1,272,566     1,193,035     1,046,488     1,012,760  
Mortgage warehouse lines of credit 202,744     207,871     233,325     270,494     191,154  
Consumer 19,799     20,892     20,267     19,648     20,985  
Total loans held for investment 3,838,343     3,789,105     3,601,081     3,372,096     3,245,992  
Less: Allowance for loan losses 35,578     34,203     35,727     34,151     34,132  
Loans held for investment, net $ 3,802,765     $ 3,754,902     $ 3,565,354     $ 3,337,945     $ 3,211,860  
                   
Nonperforming assets                  
Nonperforming loans held for investment                  
Commercial real estate $ 8,622     $ 8,281     $ 8,851     $ 8,712     $ 8,851  
Construction/land/land development 922     935     960     1,197     1,272  
Residential real estate 5,196     6,668     7,220     7,713     7,226  
Commercial and industrial 15,309     15,792     9,285     8,831     9,312  
Consumer 206     180     238     340     349  
Total nonperforming loans held for investment 30,255     31,856     26,554     26,793     27,010  
Nonperforming loans held for sale 1,390     741     1,391     1,949     246  
Total nonperforming loans 31,645     32,597     27,945     28,742     27,256  
Repossessed assets 3,659     3,739     3,306     654     722  
Total nonperforming assets $ 35,304     $ 36,336     $ 31,251     $ 29,396     $ 27,978  
Classified assets $ 77,619     $ 82,914     $ 80,092     $ 87,289     $ 91,760  
                   
Allowance for loan losses                  
Balance at beginning of period $ 34,203     $ 35,727     $ 34,151     $ 34,132     $ 37,083  
Provision (benefit) for loan losses 823     1,886     1,113     140     (1,558 )
Loans charged off 608     3,583     1,009     794     1,738  
Loan recoveries 1,160     173     1,472     673     345  
Net (recoveries) charge offs (552 )   3,410     (463 )   121     1,393  
Balance at end of period $ 35,578     $ 34,203     $ 35,727     $ 34,151     $ 34,132  
                   
Credit quality ratios                  
Total nonperforming assets to total assets 0.72 %   0.75 %   0.67 %   0.67 %   0.66 %
Total nonperforming loans to total loans 0.82     0.85     0.77     0.84     0.83  
Nonperforming loans held for investment to loans held for investment 0.79     0.84     0.74     0.79     0.83  
Allowance for loan losses to nonperforming loans held for investment 117.59     107.37     134.54     127.46     126.37  
Allowance for loan losses to total loans held for investment 0.93     0.90     0.99     1.01     1.05  
Net charge offs (recoveries) to total average loans held for investment (annualized) (0.06 )   0.37     (0.05 )   0.01     0.18  


 
Origin Bancorp, Inc.
Average Balances and Yields/Rates
 
  Three months ended
  March 31, 2019   December 31, 2018   March 31, 2018
  Average Balance   Yield/Rate   Average Balance   Yield/Rate   Average Balance   Yield/Rate
                       
Assets (Dollars in thousands, unaudited)
Commercial real estate $ 1,214,682     5.17 %   $ 1,176,837     5.07 %   $ 1,085,597     4.69 %
Construction/land/land development 457,175     5.74     407,120     5.55     327,472     4.87  
Residential real estate 634,287     4.81     604,383     4.87     575,511     4.47  
Commercial and industrial 1,287,461     5.35     1,251,969     5.22     1,001,894     4.77  
Mortgage warehouse lines of credit 147,453     5.63     187,801     5.54     174,714     4.98  
Consumer 20,482     6.83     21,809     6.76     21,054     6.45  
Loans held for investment 3,761,540     5.28     3,649,919     5.17     3,186,242     4.73  
Loans held for sale 17,687     4.05     22,168     4.70     27,082     4.08  
Loans Receivable 3,779,227     5.28     3,672,087     5.17     3,213,324     4.73  
Investment securities-taxable 498,733     2.68     499,489     2.64     310,519     2.24  
Investment securities-nontaxable 101,794     3.37     113,183     3.52     132,660     3.57  
Non-marketable equity securities held in other financial institutions 42,161     2.90     40,176     2.64     22,968     2.97  
Interest-bearing balances due from banks 123,326     2.69     108,126     2.51     217,313     1.64  
Total interest-earning assets 4,545,241     4.86     4,433,061     4.75     3,896,784     4.31  
Noninterest-earning assets(1) 325,807         308,125         301,069      
Total assets $ 4,871,048         $ 4,741,186         $ 4,197,853      
                       
Liabilities and Stockholders' Equity                      
Liabilities                      
Interest-bearing liabilities                      
Savings and interest-bearing transaction accounts $ 2,020,440     1.26 %   $ 1,932,958     1.10 %   $ 2,073,120     0.81 %
Time deposits 848,629     2.03     789,816     1.81     618,994     1.19  
Total interest-bearing deposits 2,869,069     1.48     2,722,774     1.31     2,692,114     0.90  
Federal funds purchased 19     2.89                  
Borrowings 335,891     2.05     358,810     1.95     75,439     3.06  
Securities sold under agreements to repurchase 39,757     1.39     37,075     1.23     28,713     0.47  
Subordinated debentures 9,647     5.78     9,641     5.66     9,622     5.65  
Total interest-bearing liabilities 3,254,383     1.55     3,128,300     1.39     2,805,888     0.97  
Noninterest-bearing deposits 972,617         1,001,033         864,552      
Other liabilities(1) 83,957         70,648         67,459      
Total liabilities 4,310,957         4,199,981         3,737,899      
Stockholders' Equity 560,091         541,205         459,954      
Total liabilities and stockholders' equity $ 4,871,048         $ 4,741,186         $ 4,197,853      
Net interest spread     3.31 %       3.36 %       3.34 %
Net interest margin     3.75 %       3.76 %       3.61 %
Net interest income margin - (tax- equivalent)(2)     3.80 %       3.82 %       3.68 %

____________________________
(1)  Includes Government National Mortgage Association ("GNMA") repurchase average balances of $30.1 million, $29.2 million and $32.0 million for the three months ended March 31, 2019, December 31, 2018, and March 31, 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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