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.


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 losses1,005  1,723  504  311  (1,524)
Noninterest income11,604  10,588  10,237  10,615  9,800 
Noninterest expense35,381  35,023  34,344  32,012  29,857 
Income before income tax expense17,244  15,903  14,886  15,462  16,191 
Income tax expense3,089  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 share0.60  0.55  0.52  0.53  0.60 
Dividends declared per common share0.0325  0.0325  0.0325  0.0325  0.0325 
Weighted average common shares outstanding - basic23,569,576  23,519,778  23,493,065  22,107,489  19,459,278 
Weighted average common shares outstanding - diluted23,776,349  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 assets4,872,201  4,821,576  4,667,564  4,371,792  4,214,899 
Total deposits3,898,248  3,783,138  3,727,158  3,672,097  3,580,738 
Total stockholders' equity568,122  549,779  531,919  519,356  462,824 
          
Performance metrics and capital ratios         
Yield on loans held for investment5.28% 5.17% 5.00% 4.89% 4.73%
Yield on interest earnings assets4.86  4.75  4.58  4.43  4.31 
Rate on interest bearing deposits1.48  1.31  1.16  1.01  0.90 
Rate on total deposits1.11  0.96  0.85  0.75  0.68 
Net interest margin, fully tax equivalent3.80  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 banks44,928  45,670  59,721  97,865  194,268 
Federal funds sold    20,000     
Total cash and cash equivalents111,240  116,678  140,437  169,574  247,257 
Securities:         
Available for sale563,826  575,644  585,788  507,513  414,157 
Held to maturity19,033  19,169  19,602  19,731  19,860 
Securities carried at fair value through income11,510  11,361  11,273  11,413  11,723 
Total securities594,369  606,174  616,663  538,657  445,740 
Non-marketable equity securities held in other financial institutions42,314  42,149  39,283  25,005  22,995 
Loans held for sale42,265  52,210  50,658  62,072  48,988 
Loans3,838,343  3,789,105  3,601,081  3,372,096  3,245,992 
Less: allowance for loan losses35,578  34,203  35,727  34,151  34,132 
Loans, net of allowance for loan losses3,802,765  3,754,902  3,565,354  3,337,945  3,211,860 
Premises and equipment, net78,684  75,014  74,936  77,064  76,648 
Mortgage servicing rights23,407  25,114  26,163  25,738  25,999 
Cash surrender value of bank-owned life insurance32,888  32,706  32,487  28,326  28,185 
Goodwill and other intangible assets, net32,497  32,861  33,228  24,113  24,219 
Accrued interest receivable and other assets111,772  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 deposits2,101,706  2,027,720  1,985,757  1,995,798  2,071,626 
Time deposits818,623  804,403  765,141  726,219  623,229 
Total deposits3,898,248  3,783,138  3,727,158  3,672,097  3,580,738 
FHLB advances and other borrowings335,053  445,224  358,532  139,092  132,224 
Junior subordinated debentures9,651  9,644  9,637  9,631  9,625 
Accrued expenses and other liabilities61,127  33,791  40,318  31,616  29,488 
Total liabilities4,304,079  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 stock118,730  118,633  118,106  117,520  97,626 
Additional paid-in capital242,579  242,041  240,832  238,260  146,201 
Retained earnings205,289  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' equity568,122  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-taxable3,341  3,292  2,754  2,057  1,740 
Investment securities-nontaxable858  996  1,129  1,156  1,184 
Interest and dividend income on assets held in other financial institutions1,120  950  1,080  1,320  1,046 
Federal funds sold  1  7     
Total interest and dividend income54,494  53,058  48,842  44,752  41,444 
Interest expense         
Interest-bearing deposits10,497  8,980  7,891  6,820  5,980 
FHLB advances and other borrowings1,834  1,878  1,314  624  604 
Subordinated debentures137  139  140  138  136 
Total interest expense12,468  10,997  9,345  7,582  6,720 
Net interest income42,026  42,061  39,497  37,170  34,724 
Provision (benefit) for credit losses1,005  1,723  504  311  (1,524)
Net interest income after provision (benefit) for credit losses41,021  40,338  38,993  36,859  36,248 
Noninterest income         
Service charges and fees3,316  3,349  3,234  3,157  3,014 
Mortgage banking revenue2,606  2,288  2,621  2,317  2,394 
Insurance commission and fee income3,510  2,481  3,306  1,826  2,107 
Loss on sales of securities, net  (8)      
Gain (loss) on sales and disposals of other assets, net3  (23) (207) 121  (61)
Other fee income276  592  364  403  452 
Other income1,893  1,909  919  2,791  1,894 
Total noninterest income11,604  10,588  10,237  10,615  9,800 
Noninterest expense         
Salaries and employee benefits22,613  21,333  21,054  19,859  18,241 
Occupancy and equipment, net4,044  3,830  4,169  3,793  3,653 
Data processing1,587  1,839  1,523  1,347  1,473 
Electronic banking689  699  761  680  743 
Communications586  513  490  510  515 
Advertising and marketing798  1,351  1,245  1,022  657 
Professional services904  1,024  982  598  665 
Regulatory assessments711  666  411  660  720 
Loan related expenses669  810  718  798  713 
Office and operations1,481  1,516  1,499  1,588  1,278 
Other expenses1,299  1,442  1,492  1,157  1,199 
Total noninterest expense35,381  35,023  34,344  32,012  29,857 
Income before income tax expense17,244  15,903  14,886  15,462  16,191 
Income tax expense3,089  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 share0.60  0.55  0.52  0.53  0.60 


 
Origin Bancorp, Inc.
Loan Data
 
 At and for the three months ended
Loans held for investmentMarch 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 development488,167  429,660  406,249  380,869  340,684 
Residential real estate638,064  629,714  585,931  563,016  583,461 
Total real estate2,328,500  2,287,776  2,154,454  2,035,466  2,021,093 
Commercial and industrial1,287,300  1,272,566  1,193,035  1,046,488  1,012,760 
Mortgage warehouse lines of credit202,744  207,871  233,325  270,494  191,154 
Consumer19,799  20,892  20,267  19,648  20,985 
Total loans held for investment3,838,343  3,789,105  3,601,081  3,372,096  3,245,992 
Less: Allowance for loan losses35,578  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 development922  935  960  1,197  1,272 
Residential real estate5,196  6,668  7,220  7,713  7,226 
Commercial and industrial15,309  15,792  9,285  8,831  9,312 
Consumer206  180  238  340  349 
Total nonperforming loans held for investment30,255  31,856  26,554  26,793  27,010 
Nonperforming loans held for sale1,390  741  1,391  1,949  246 
Total nonperforming loans31,645  32,597  27,945  28,742  27,256 
Repossessed assets3,659  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 losses823  1,886  1,113  140  (1,558)
Loans charged off608  3,583  1,009  794  1,738 
Loan recoveries1,160  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 assets0.72% 0.75% 0.67% 0.67% 0.66%
Total nonperforming loans to total loans0.82  0.85  0.77  0.84  0.83 
Nonperforming loans held for investment to loans held for investment0.79  0.84  0.74  0.79  0.83 
Allowance for loan losses to nonperforming loans held for investment117.59  107.37  134.54  127.46  126.37 
Allowance for loan losses to total loans held for investment0.93  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 development457,175  5.74  407,120  5.55  327,472  4.87 
Residential real estate634,287  4.81  604,383  4.87  575,511  4.47 
Commercial and industrial1,287,461  5.35  1,251,969  5.22  1,001,894  4.77 
Mortgage warehouse lines of credit147,453  5.63  187,801  5.54  174,714  4.98 
Consumer20,482  6.83  21,809  6.76  21,054  6.45 
Loans held for investment3,761,540  5.28  3,649,919  5.17  3,186,242  4.73 
Loans held for sale17,687  4.05  22,168  4.70  27,082  4.08 
Loans Receivable3,779,227  5.28  3,672,087  5.17  3,213,324  4.73 
Investment securities-taxable498,733  2.68  499,489  2.64  310,519  2.24 
Investment securities-nontaxable101,794  3.37  113,183  3.52  132,660  3.57 
Non-marketable equity securities held in other financial institutions42,161  2.90  40,176  2.64  22,968  2.97 
Interest-bearing balances due from banks123,326  2.69  108,126  2.51  217,313  1.64 
Total interest-earning assets4,545,241  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 deposits848,629  2.03  789,816  1.81  618,994  1.19 
Total interest-bearing deposits2,869,069  1.48  2,722,774  1.31  2,692,114  0.90 
Federal funds purchased19  2.89         
Borrowings335,891  2.05  358,810  1.95  75,439  3.06 
Securities sold under agreements to repurchase39,757  1.39  37,075  1.23  28,713  0.47 
Subordinated debentures9,647  5.78  9,641  5.66  9,622  5.65 
Total interest-bearing liabilities3,254,383  1.55  3,128,300  1.39  2,805,888  0.97 
Noninterest-bearing deposits972,617    1,001,033    864,552   
Other liabilities(1)83,957    70,648    67,459   
Total liabilities4,310,957    4,199,981    3,737,899   
Stockholders' Equity560,091    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.