• Origin Bancorp, Inc. Reports Earnings For Third Quarter 2022

    来源: Nasdaq GlobeNewswire / 26 10月 2022 16:10:01   America/New_York

    RUSTON, La., Oct. 26, 2022 (GLOBE NEWSWIRE) -- Origin Bancorp, Inc. (Nasdaq: OBNK) (“Origin” or the “Company”), the holding company for Origin Bank (the “Bank”), today announced net income of $16.2 million, or $0.57 diluted earnings per share for the quarter ended September 30, 2022, compared to $21.3 million, or $0.90 diluted earnings per share, for the quarter ended June 30, 2022, and compared to net income of $27.0 million, or $1.14 diluted earnings per share for the quarter ended September 30, 2021. Adjusted net income(1) for the quarter ended September 30, 2022, was $31.1 million, or $1.09 adjusted diluted earnings per share(1). Pre-tax, pre-provision net income ("PTPP")(1) was $36.0 million.

    "This was a significant and exciting quarter for Origin as we showed strong core profitability and completed the merger with BT Holdings,” said Drake Mills, chairman, president and CEO of Origin Bancorp, Inc. “Origin now has meaningful expansion across the I-20 corridor in East Texas and adds impressive depth in Dallas and Fort Worth.”

    (1) Adjusted net income, adjusted diluted earnings per share and PTPP are non-GAAP financial measures, please see the last few pages of this document for a reconciliation of these alternative financial measures to their comparable GAAP measures.

    Third Quarter Financial Highlights

    • On August 1, 2022, the Company completed its previously announced merger with BT Holdings, Inc., (“BTH”). As a result of the merger with BTH, the Company recorded a $14.9 million provision expense for loan credit losses for the Current Expected Credit Loss ("CECL") requirement on non-Purchased Credit Deteriorated ("PCD") loans, along with a $5.5 million allowance for loan credit losses on PCD loans. In total, the Company incurred $18.5 million in merger-related expenses during the quarter ended September 30, 2022, which includes the $14.9 million provision expense for loan credit losses.
    • The Company's annualized returns on average assets ("ROA") and average equity ("ROE") were 0.70% and 6.86%, respectively, for the quarter ended September 30, 2022. Additionally, the Company's annualized adjusted returns on average assets ("Adjusted ROA") and adjusted return on average equity ("Adjusted ROE") were 1.34% and 13.14%, respectively, for the quarter ended September 30, 2022.
    • Net interest income for the quarter ended September 30, 2022, was $78.5 million, reflecting a $19.0 million, or 32.0% increase, compared to the linked quarter, and a $26.0 million, or 49.5% increase, compared to the prior year quarter.
    • The fully tax-equivalent net interest margin (“NIM”) was 3.68% for the quarter ended September 30, 2022, reflecting a 45 basis point increase from the linked quarter and a 66 basis point increase from the quarter ended September 30, 2021. The fully tax-equivalent NIM, excluding the net purchase accounting accretion (“PAA”) from the net interest income for the quarter ended September 30, 2022, was 3.61%.
    • Total loans held for investment (“LHFI”) at September 30, 2022, were $6.88 billion. Adjusting for the impact of the BTH merger, and excluding mortgage warehouse lines of credit, loan growth during the quarter was $215.3 million, or 3.5%.
    • Provision for credit losses was a net expense of $16.9 million for the quarter ended September 30, 2022, compared to a net expense of $3.5 million and a net benefit of $3.9 million for the linked quarter and the quarter ended September 30, 2021, respectively. The increase was primarily due to the merger with BTH, which required a Day 1 CECL loan provision of $14.9 million.
    • The allowance for loan credit losses ("ALCL") to LHFI was 1.21% at September 30, 2022, compared to 1.14% at June 30, 2022. The ALCL to LHFI, adjusted(2) was 1.29% at September 30, 2022, compared to 1.25% at June 30, 2022.
    • Total nonperforming LHFI to total LHFI was 0.20% at September 30, 2022, compared to 0.25% at June 30, 2022, and 0.47% at September 30, 2021, reflecting a 20.0% and 57.4% decrease in the ratio when compared to the linked quarter and prior year quarter, respectively. The ALCL to nonperforming LHFI was 594.1% at September 30, 2022, compared to 448.2% and 284.9% at the linked quarter and prior year quarter, respectively.

    (2) The ALCL to total LHFI, adjusted, is calculated at September 30, 2022, by excluding the ALCL for warehouse loans from the total LHFI ALCL in the numerator and excluding the warehouse loans from the LHFI in the denominator. For the periods prior to September 30, 2022, it is calculated by excluding the ALCL for warehouse loans from the total LHFI ALCL in the numerator and excluding the PPP and warehouse loans from the LHFI in the denominator. Due to their low-risk profile, mortgage warehouse loans require a disproportionately low allocation of the ALCL and PPP loans are fully guaranteed by the Small Business Administration ("SBA").

    Results of Operations for the Three Months Ended September 30, 2022

    Net Interest Income and Net Interest Margin

    Net interest income for the quarter ended September 30, 2022, was $78.5 million, an increase of $19.0 million, or 32.0%, compared to the linked quarter. Purchase accounting accretion on acquired loans was $1.2 million during the current quarter, with remaining purchase accounting net loan discounts totaling $3.9 million at September 30, 2022. Net purchase accounting accretion income on deposits and sub-debt totaled $228,000, bringing the total impact from purchase accounting treatment on net interest income to $1.4 million for the three months ended September 30, 2022. Excluding the net purchase accounting accretion, the increase in net interest income was almost equally due to increases in average interest-earning assets and increases in market interest rates, partially offset by higher interest expense primarily due to rate increases on average savings and interest-bearing deposit balances and borrowings, as explained further in the paragraph below.

    The table below presents the estimated loan and deposit accretion and sub-debt amortization schedule resulting from the BTH merger purchase accounting adjustments for the periods shown.

     Loan
    Accretion
    Income
     Deposit
    Accretion
    Income
     Sub-Debt
    Amortization
    Expense
     Total Expected
    Impact to Net
    Interest Income
    3Q2022 (actual, realized)$1,187 $238 $(10) $1,415 
    4Q2022 (estimated)$1,653 $250 $(15) $1,888 
    For the years ending (estimated):       
    2023 2,023  218  (62)  2,179 
    Thereafter 223  23  (706)  (460)
    Total remaining purchase accounting adjustment at September 30, 2022$3,899 $491 $(783) $3,607 

    The increase in net interest income for the three-month period ended September 30, 2022, was the result of a $25.4 million increase in total interest income partially offset by a $6.4 million increase in interest expense. Increases in market interest rates drove a $13.6 million increase in total interest income, while increases in average interest-earning assets drove an $11.8 million increase in total interest income. The increase in interest expense was primarily due to market rate increases, which drove a $4.2 million increase in interest expense on deposits and a $1.0 million increase in interest expense on FHLB advances and subordinated debt.

    The Federal Reserve Board sets various benchmark rates, including the Federal Funds rate, and thereby influences the general market rates of interest, including the loan and deposit rates offered by financial institutions. In early 2020, the Federal Reserve lowered the target rate range to 0.00% to 0.25%. These rates remained in effect throughout all of 2021. On March 17, 2022, the target rate range was increased to 0.25% to 0.50%, then subsequently increased four more times during 2022, with the most recent and current Federal Funds target rate range being set at September 21, 2022, to 3.00% to 3.25%. At September 30, 2022, the Federal Funds target rate range had increased 300 basis points on a year-to-date basis. Increases in market interest rates contributed $11.6 million to the total increase in interest income earned on total LHFI, while market interest rates increased our total deposit interest expense by $4.2 million during the current quarter compared to the linked quarter.

    The yield on LHFI was 4.94% and 4.26% for the three months ended September 30, 2022, and June 30, 2022, respectively, and average LHFI balances increased to $6.39 billion for the quarter ended September 30, 2022, compared to $5.24 billion for the linked quarter. The yield on total investment securities was 2.12% for the three months ended September 30, 2022, compared to 1.85% for the linked quarter. Additionally, the rate on interest-bearing deposits increased to 0.64% for the quarter ended September 30, 2022, compared to 0.29% for the quarter ended June 30, 2022, and average interest-bearing deposit balances increased to $4.83 billion from $4.27 billion for the linked quarter. Average balances of subordinated debentures also increased to $186.8 million for the quarter ended September 30, 2022, compared to $157.5 million for the linked quarter due to subordinated indebtedness assumed in the merger, and reflected a rate of 4.81% for the current quarter compared to 4.64% for the linked quarter.

    The fully tax-equivalent NIM was 3.68% for the quarter ended September 30, 2022, a 45 basis point increase and a 66 basis point increase compared to the linked quarter and the prior year quarter, respectively. The yield earned on interest-earning assets for the quarter ended September 30, 2022, was 4.23%, an increase of 70 basis points and an increase of 90 basis points compared to the linked quarter and the prior year quarter, respectively. The rate paid on total deposits for the quarter ended September 30, 2022, was 0.41%, representing a 22 basis point increase from the linked quarter and a 20 basis point increase compared to the prior year quarter. The rate paid on subordinated debentures also increased to 4.81%, reflecting a 17 and an 18 basis point increase compared to the linked quarter and prior year quarter, respectively. The net increase in accretion income due to the BTH merger increased the fully tax-equivalent NIM by approximately seven basis points during the current quarter.

    Credit Quality

    The table below includes key credit quality information:

     At and For the Three Months Ended$ Change % Change
    (Dollars in thousands)September 30,
    2022
     June 30,
    2022
     Linked
    Quarter
     Linked
    Quarter
    Past due LHFI$10,866  $7,186  $3,680  51.2%
    ALCL 83,359   63,123   20,236  32.1 
    Classified loans 69,781   52,115   17,666  33.9 
    Total nonperforming LHFI 14,031   14,085   (54) (0.4)
    Provision for credit losses 16,942   3,452   13,490  390.8 
    Net charge-offs 1,078   1,553   (475) (30.6)
    Credit quality ratios(1):       
    ALCL to nonperforming LHFI 594.11%  448.16%  N/A  14595bp
    ALCL to total LHFI 1.21   1.14   N/A  7bp
    ALCL to total LHFI, adjusted(2) 1.29   1.25   N/A  4bp
    Nonperforming LHFI to LHFI 0.20   0.25   N/A  -5bp
    Net charge-offs to total average LHFI (annualized) 0.07   0.12   N/A  -5bp


    _____________________________________________________
    (1)Please see the Loan Data schedule at the back of this document for additional information.
    (2)The ALCL to total LHFI, adjusted, is calculated at September 30, 2022, by excluding the ALCL for warehouse loans from the total LHFI ALCL in the numerator and excluding the warehouse loans from the LHFI in the denominator. For the periods prior to September 30, 2022, it is calculated by excluding the ALCL for warehouse loans from the total LHFI ALCL in the numerator and excluding the PPP and warehouse loans from the LHFI in the denominator. Due to their low-risk profile, mortgage warehouse loans require a disproportionately low allocation of the ALCL and PPP loans are fully guaranteed by the SBA.

    The Company recorded a credit loss provision of $16.9 million during the quarter ended September 30, 2022, compared to a credit loss provision of $3.5 million recorded during the linked quarter. The increase is primarily due to the merger with BTH, completed on August 1, 2022, which required a Day 1 CECL loan provision of $14.9 million. The remaining $2.1 million provision for credit losses in excess of the loan credit loss provision recorded in conjunction with the BTH merger was primarily due to a $1.2 million provision expense for off-balance sheet items due to an increase in unfunded loan commitments unrelated to those acquired in the BTH merger.

    Overall, absent the impact of the BTH merger and its effect on the following: provision of $14.9 million, classified loans of $17.5 million, past due loans of $3.1 million, and nonperforming LHFI of $3.0 million, most credit metrics improved at September 30, 2022, when compared to the linked quarter. The ALCL to nonperforming LHFI increased to 594.1% at September 30, 2022, compared to 448.2% at June 30, 2022, driven by the $20.2 million increase in the Company’s ALCL for the quarter, which was predominately driven by the BTH merger. Quarterly net charge-offs decreased to $1.1 million from $1.6 million for the linked quarter, decreasing to 0.07% (annualized) to total average LHFI for the quarter ending September 30, 2022, compared to 0.12% (annualized) for the quarter ending June 30, 2022. Also, primarily due to the BTH merger, classified loans increased $17.7 million at September 30, 2022, compared to the linked quarter and represented 1.01% of LHFI, at September 30, 2022, compared to 0.94% at June 30, 2022. The ALCL to total LHFI increased to 1.21% at September 30, 2022, compared to 1.14% at June 30, 2022.

    Noninterest Income

    Noninterest income for the quarter ended September 30, 2022, was $13.7 million, a decrease of $493,000, or 3.5%, from the linked quarter. The decrease from the linked quarter was primarily driven by decreases of $3.3 million in mortgage banking revenue, offset by an increase of $1.7 million in gain on sales of securities, net.

    The $3.3 million decrease in mortgage banking revenue compared to the linked quarter was primarily driven by an 11% reduction in origination volume, a 30% reduction in sales volume and a 45% reduction in sales margin experienced in the current quarter. Also contributing to the decline was a $2.0 million impairment of the GNMA MSR portfolio.

    The gain on sales of securities, net, increased $1.7 million when compared to the quarter ended June 30, 2022, due to the sale of primarily legacy BTH securities during the current quarter as a result of investment strategy and liquidity management. The proceeds from the sale were primarily used to pay down our short-term FHLB borrowings.

    Noninterest Expense

    Noninterest expense for the quarter ended September 30, 2022, was $56.2 million, an increase of $12.1 million compared to the linked quarter. The increase from the linked quarter was primarily driven by increases of $4.5 million, $2.8 million and $1.3 million in salaries and employee benefits expense, merger-related expenses, and intangible asset amortization expense, respectively.

    The $4.5 million increase in salaries and employee benefits expense was primarily driven by the addition of 123 full-time equivalent employees due to the BTH merger, which contributed $2.3 million to the total increase. Additionally, incentive accruals increased by $995,000 due to exceeding performance metrics during the period. We made the decision last quarter to implement inflationary raises for a large segment of our employees.

    Merger-related expenses associated with the BTH merger were $3.6 million during the current quarter.

    The $1.3 million increase in intangible asset amortization expense was due to the core deposit intangible established in conjunction with the BTH merger.

    Income Taxes

    The effective tax rate was 14.8% during the quarter ended September 30, 2022, compared to 18.4% during the linked quarter and 18.8% during the quarter ended September 30, 2021. The effective tax rate for the quarter ended September 30, 2022, was lower due to tax-exempt items having a larger than proportional effect on the Company's effective income tax rate as income before taxes was lower for the quarter ended September 30, 2022, compared to both the linked quarter and same quarter last year primarily due to merger-related expense during the current quarter.

    Financial Condition

    Loans

    • Total LHFI increased $1.35 billion compared to the linked quarter and $1.70 billion compared to September 30, 2021.
    • On August 1, 2022, we acquired $1.24 billion in loans, net of fair value adjustments, from BTH.
    • Adjusting for the impact of BTH and excluding mortgage warehouse loans, loan growth during the current quarter totaled $215.3 million, or 3.5%, when compared to the linked quarter.
    • Mortgage warehouse lines of credit totaled $460.6 million at September 30, 2022, a decrease of $71.3 million, or 13.4%, compared to the linked quarter and a decrease of $252.8 million, or 35.4%, compared to September 30, 2021.
    • Total LHFI at September 30, 2022, were $6.88 billion, reflecting an increase of 24.5% compared to the linked quarter and 32.7% compared to September 30, 2021.

    Securities

    • Total securities at September 30, 2022, were $1.69 billion, a decrease of $125.5 million, or 6.9%, compared to the linked quarter and an increase of $154.7 million, or 10.1%, compared to September 30, 2021.
    • The fair value of acquired BTH securities totaled $456.8 million.
    • The Company sold $447.5 million of primarily legacy BTH available for sale ("AFS") securities during the quarter ended September 30, 2022, and used the majority of the funds to pay down short-term Federal Home Loan Bank ("FHLB") advances.
    • The steepening of the short end of the yield curve during the year-to-date 2022 period negatively impacted the fair value of the AFS portfolio and caused an accumulated other comprehensive loss of $175.2 million, $59.3 million of which was recorded during the current quarter.
    • The total securities portfolio effective duration was 5.2 years as of September 30, 2022, compared to 4.4 years as of June 30, 2022.

    Deposits

    • Total deposits increased $1.47 billion compared to the linked quarter and increased $1.62 billion compared to September 30, 2021, respectively.
    • The merger with BTH reflected the addition of $1.57 billion of deposits, net of fair value adjustments, at August 1, 2022, and contributed $865.9 million in interest-bearing demand, $398.1 million in noninterest-bearing and $302.5 million in time deposits.
    • Adjusting for the impact of BTH, deposits decreased $139.7 million during the quarter ended September 30, 2022, compared to June 30, 2022, and grew $4.7 million compared to September 30, 2021. The quarterly decrease was due in large part to one customer moving deposits out of the bank due to a business transaction combined with our strategic decision to allow some non-core funding to leave the bank.
    • For both the quarter ended September 30, 2022, and the linked quarter, average noninterest-bearing deposits as a percentage of total average deposits were 34.9% compared to 31.7% for the quarter ended September 30, 2021.

    Borrowings

    • The Company assumed $37.6 million of subordinated promissory notes ("Notes") from BTH in conjunction with the merger, $10.1 million in repurchase agreements with former BTH depositors and $7.2 million in junior subordinated debt.
    • During the quarter ended September 30, 2022, short-term FHLB advances decreased from $600.0 million to $150.0 million. As mentioned above, the Company sold primarily legacy BTH AFS securities during the quarter ended September 30, 2022, and used the majority of the funds to pay down short-term FHLB advances.

    Stockholders’ Equity

    • Stockholders’ equity was $907.0 million at September 30, 2022, an increase of $260.7 million compared to $646.4 million at June 30, 2022, and an increase of $201.4 million compared to $705.7 million at September 30, 2021.
    • The increase in stockholders’ equity is primarily associated with the BTH merger, which drove a $306.3 million increase in stockholders' equity and net income for the quarter of $16.2 million. These increases were partially offset by a $59.3 million other comprehensive loss, net of tax, and dividend during the current quarter of $4.6 million.
    • Book value and tangible book value were negatively impacted by an accumulated other comprehensive loss, net of tax, experienced primarily on the Company's AFS securities portfolio of $175.2 million at September 30, 2022, with $59.3 million of the loss recorded during the current quarter.

    Conference Call

    Origin will hold a conference call to discuss its third quarter 2022 results on Thursday, October 27, 2022, at 8:00 a.m. Central Time (9:00 a.m. Eastern Time). To participate in the live conference call, please dial (888) 437-3179 (U.S. and Canada); and (862) 298-0702 (International), 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://www.webcaster4.com/Webcast/Page/2864/46747.

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

    About Origin

    Origin Bancorp, Inc. is a financial holding company headquartered in Ruston, Louisiana. Origin’s wholly owned bank subsidiary, Origin Bank, was founded in 1912 in Choudrant, Louisiana. Deeply rooted in Origin’s history is a culture committed to providing personalized, relationship banking to businesses, municipalities, and personal clients to enrich the lives of the people in the communities it serves. Origin provides a broad range of financial services and currently operates 59 banking centers located from Dallas/Fort Worth, East Texas and Houston, across North Louisiana and into Mississippi. For more information, visit www.origin.bank.

    Forward-Looking Statements

    This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include information regarding Origin’s future financial performance, business and growth strategy, projected plans and objectives, including the Company’s loan loss reserves and allowance for credit losses related to the COVID-19 pandemic and any expected purchases of its outstanding common stock, and related transactions and other projections based on macroeconomic and industry trends, including expectations regarding and efforts to respond to the COVID-19 pandemic and changes to interest rates by the Federal Reserve and the resulting impact on Origin’s results of operations, estimated forbearance amounts and expectations regarding the Company’s liquidity, including in connection with advances obtained from the FHLB, which are all subject to change and may be inherently unreliable due to the multiple factors that impact broader economic and industry trends, and any such changes may be material. Such forward-looking statements are based on various facts and derived utilizing important assumptions and current expectations, estimates and projections about Origin and its subsidiaries, any of which may change over time and some of which may be beyond Origin’s control. Statements or statistics preceded by, followed by or that otherwise include the words “assumes,” “anticipates,” “believes,” “estimates,” “expects,” “foresees,” “intends,” “plans,” “projects,” and similar expressions or future or conditional verbs such as “could,” “may,” “might,” “should,” “will,” and “would” and variations of such terms are generally forward-looking in nature and not historical facts, although not all forward-looking statements include the foregoing words. Further, certain factors that could affect Origin’s future results and cause actual results to differ materially from those expressed in the forward-looking statements include, but are not limited to: deterioration of Origin’s asset quality; factors that can impact the performance of Origin’s loan portfolio, including real estate values and liquidity in Origin’s primary market areas; the financial health of Origin’s commercial borrowers and the success of construction projects that Origin finances; changes in the value of collateral securing Origin’s loans; developments in our mortgage banking business, including loan modifications, general demand, and the effects of judicial or regulatory requirements or guidance; Origin’s ability to anticipate interest rate changes and manage interest rate risk, (including the impact of higher interest rates on macroeconomic conditions, and customer and client behavior); the effectiveness of Origin’s risk management framework and quantitative models; the risk of widespread inflation; Origin’s inability to receive dividends from Origin Bank and to service debt, pay dividends to Origin’s common stockholders, repurchase Origin’s shares of common stock and satisfy obligations as they become due; business and economic conditions generally and in the financial services industry, nationally and within Origin’s primary market areas, including the impact of supply-chain disruptions and labor pressures; changes in Origin’s operation or expansion strategy or Origin’s ability to prudently manage its growth and execute its strategy; changes in management personnel; Origin’s ability to maintain important customer relationships, reputation or otherwise avoid liquidity risks; increasing costs as Origin grows deposits; operational risks associated with Origin’s business; volatility and direction of market interest rates; significant turbulence or a disruption in the capital or financial markets and the effect of a fall in stock market prices on our investment securities; increased competition in the financial services industry, particularly from regional and national institutions; difficult market conditions and unfavorable economic trends in the United States generally, and particularly in the market areas in which Origin operates and in which its loans are concentrated; an increase in unemployment levels and slowdowns in economic growth; Origin’s level of nonperforming assets and the costs associated with resolving any problem loans including litigation and other costs; the credit risk associated with the substantial amount of commercial real estate, construction and land development, and commercial loans in Origin’s loan portfolio; changes in laws, rules, regulations, interpretations or policies relating to financial institutions, and potential expenses associated with complying with such regulations; periodic changes to the extensive body of accounting rules and best practices; further government intervention in the U.S. financial system; compliance with governmental and regulatory requirements, including the Dodd-Frank Wall Street Reform and Consumer Protection Act and others relating to banking, consumer protection, securities, and tax matters; Origin’s ability to comply with applicable capital and liquidity requirements, including its ability to generate liquidity internally or raise capital on favorable terms, including continued access to the debt and equity capital markets; changes in the utility of Origin’s non-GAAP liquidity measurements and its underlying assumptions or estimates; uncertainty regarding the transition away from the London Interbank Offered Rate (“LIBOR”) and the impact of any replacement alternatives such as the Secured Overnight Financing Rate (“SOFR”) on Origin’s business; possible changes in trade, monetary and fiscal policies, laws and regulations and other activities of governments, agencies and similar organizations; natural disasters and adverse weather events, acts of terrorism, an outbreak of hostilities (including the impacts related to or resulting from Russia's military action in Ukraine, including the imposition of additional sanctions and export controls, as well as the broader impacts to financial markets and the global macroeconomic and geopolitical environments, regional or national protests and civil unrest (including any resulting branch closures or property damage), widespread illness or public health outbreaks or other international or domestic calamities, and other matters beyond Origin’s control; and system failures, cybersecurity threats or security breaches and the cost of defending against them. For a discussion of these and other risks that may cause actual results to differ from expectations, please refer to the sections titled “Cautionary Note Regarding Forward-Looking Statements” and “Risk Factors” in Origin’s most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission (“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, adjusted, projected, and estimated numbers are used for illustrative purposes only, are not forecasts, and may not reflect actual results.

    Contact:

    Investor Relations
    Chris Reigelman
    318-497-3177
    chris@origin.bank

    Media Contact
    Ryan Kilpatrick
    318-232-7472
    rkilpatrick@origin.bank

    Origin Bancorp, Inc.
    Selected Quarterly Financial Data

     Three Months Ended
     September 30,
    2022
     June 30,
    2022
     March 31,
    2022
     December 31,
    2021
     September 30,
    2021
              
    Income statement and share amounts(Dollars in thousands, except per share amounts, unaudited)
    Net interest income$78,523  $59,504  $52,502  $54,180  $52,541 
    Provision for credit losses 16,942   3,452   (327)  (2,647)  (3,921)
    Noninterest income 13,723   14,216   15,906   16,701   15,923 
    Noninterest expense 56,241   44,150   42,774   40,346   39,165 
    Income before income tax expense 19,063   26,118   25,961   33,182   33,220 
    Income tax expense 2,820   4,807   5,278   4,860   6,242 
    Net income$16,243  $21,311  $20,683  $28,322  $26,978 
    Adjusted net income(1)$31,087  $21,949  $21,134  $24,155  $26,978 
    PTPP(1) 36,005   29,570   25,634   30,535   29,299 
    Basic earnings per common share 0.57   0.90   0.87   1.21   1.15 
    Diluted earnings per common share 0.57   0.90   0.87   1.20   1.14 
    Adjusted diluted earnings per common share(1) 1.09   0.92   0.89   1.02   1.14 
    Dividends declared per common share 0.15   0.15   0.13   0.13   0.13 
    Weighted average common shares outstanding - basic 28,298,984   23,740,611   23,700,550   23,484,056   23,429,705 
    Weighted average common shares outstanding - diluted 28,481,619   23,788,164   23,770,791   23,609,874   23,613,010 
              
    Balance sheet data         
    Total LHFI$6,882,681  $5,528,093  $5,194,406  $5,231,331  $5,187,288 
    Total assets 9,462,639   8,111,524   8,112,295   7,861,285   7,470,478 
    Total deposits 7,777,327   6,303,158   6,767,179   6,570,693   6,158,768 
    Total stockholders’ equity 907,024   646,373   676,865   730,211   705,667 
              
    Performance metrics and capital ratios         
    Yield on LHFI 4.94%  4.26%  4.08%  4.11%  4.05%
    Yield on interest-earnings assets 4.23   3.53   3.13   3.35   3.33 
    Cost of interest-bearing deposits 0.64   0.29   0.26   0.28   0.30 
    Cost of total deposits 0.41   0.19   0.17   0.19   0.21 
    NIM - fully tax equivalent ("FTE") 3.68   3.23   2.86   3.06   3.02 
    NIM - FTE, adjusted (2) 3.61   3.20   2.76   2.92   2.94 
    Return on average assets (annualized) ("ROA") 0.70   1.08   1.04   1.49   1.43 
    Adjusted ROA (annualized) (1) 1.34   1.11   1.07   1.27   1.43 
    PTPP ROA (1) 1.55   1.49   1.29   1.60   1.56 
    Return on average stockholders’ equity (annualized) ("ROE") 6.86   12.81   11.61   15.70   15.21 
    Adjusted ROE (annualized) (1) 13.14   13.19   11.86   13.39   15.21 
    PTPP ROE (1) 15.22   17.77   14.39   16.93   16.52 
    Book value per common share$29.58  $27.15  $28.50  $30.75  $30.03 
    Tangible book value per common share (1)(3) 23.41   25.05   26.37   28.59   28.76 
    Adjusted tangible book value per common share (1) 29.13   29.92   29.15   28.35   28.26 
    Efficiency ratio (4) 60.97%  59.89%  62.53%  56.92%  57.21%
    Core efficiency ratio(1) 52.16   54.10   58.93   57.25   53.03 
    Common equity tier 1 to risk-weighted assets (5) 10.51   10.82   11.20   11.20   11.27 
    Tier 1 capital to risk-weighted assets (5) 10.70   10.96   11.35   11.36   11.42 
    Total capital to risk-weighted assets (5) 13.98   14.09   14.64   14.77   14.95 
    Tier 1 leverage ratio (5) 9.63   9.09 
       8.84   9.20   9.20 


    _____________________________________________________
    (1)Adjusted net income, PTPP earnings, adjusted diluted earnings per common share, adjusted ROA, PTPP ROA, adjusted ROE, PTPP ROE, tangible book value per common share, adjusted tangible book value per common share and core efficiency ratio are either non-GAAP financial measures or use a non-GAAP contributor in the formula. For a reconciliation of these alternative financial measures to their comparable GAAP measures, please see the last few pages of this release.
    (2)NIM - FTE, adjusted, is a non-GAAP financial measure, and is calculated for the quarter ended September 30, 2022, by removing the net Purchase Accounting ("PAA") accretion from the net interest income. For periods prior to September 30, 2022, it is calculated by removing average PPP loans from average interest-earning assets and removing the associated interest income (net of 35 basis points assumed cost of funds on average PPP loan balances) from net interest income.
    (3)A decline in accumulated other comprehensive loss during the YTD period ended September 30, 2022, negatively impacted total stockholders' equity and tangible common equity and caused tangible book value per common share to decline primarily due to the steepening of the short end of the yield curve that occurred during 2022 and its impact on our investment portfolio.
    (4)Calculated by dividing noninterest expense by the sum of net interest income plus noninterest income.
    (5)September 30, 2022, ratios are estimated and calculated at the Company level, which is subject to the capital adequacy requirements of the Federal Reserve Board.
      

    Origin Bancorp, Inc.
    Selected Year-to-Date Financial Data

     Nine Months Ended September 30,
    (Dollars in thousands, except per share amounts) 2022   2021 
    Income statement and share amounts(Unaudited)
    Net interest income$190,529  $162,072 
    Provision for credit losses 20,067   (8,118)
    Noninterest income 43,845   45,492 
    Noninterest expense 143,165   116,433 
    Income before income tax expense 71,142   99,249 
    Income tax expense 12,905   19,025 
    Net income$58,237  $80,224 
    Adjusted net income(1)$74,170  $78,902 
    PTPP earnings(1) 91,209   91,131 
    Basic earnings per common share (2) 2.31   3.43 
    Diluted earnings per common share(2) 2.30   3.40 
    Adjusted diluted earnings per common share(1) 2.92   3.34 
    Dividends declared per common share 0.43   0.36 
    Weighted average common shares outstanding - basic 25,263,681   23,413,794 
    Weighted average common shares outstanding - diluted 25,366,807   23,606,597 
        
    Performance metrics   
    Yield on LHFI 4.47%  4.03%
    Yield on interest-earning assets 3.66   3.45 
    Cost of interest-bearing deposits 0.40   0.33 
    Cost of total deposits 0.27   0.23 
    NIM, FTE 3.28   3.12 
    NIM - FTE, adjusted (3) 3.25   3.05 
    ROA (annualized) 0.93   1.44 
    Adjusted ROA (annualized)(1) 1.18   1.42 
    PTPP ROA (annualized)(1) 1.45   1.64 
    ROE (annualized) 10.02   15.81 
    Adjusted ROE (annualized)(1) 12.76   15.55 
    PTPP ROE (annualized)(1) 15.69   17.96 
    Efficiency ratio (4) 61.08   56.09 
    Core efficiency ratio(1) 54.64   51.46 


    _____________________________________________________
    (1)Adjusted net income, PTPP earnings, adjusted diluted earnings per common share, adjusted ROA, PTPP ROA, adjusted ROE, PTPP ROE, and core efficiency ratio are either non-GAAP financial measures or use a non-GAAP contributor in the formula. For a reconciliation of these alternative financial measures to their comparable GAAP measures, please see the last few pages of this release.
    (2)Due to the combined impact of the issuance of common stock shares due to the BTH merger on the quarterly average common shares outstanding calculation compared to the impact of the issuance of common stock shares due to the BTH merger on the year-to-date average common outstanding calculation, and the effect of rounding, the sum of the quarterly earnings per common share may not equal the year-to-date earnings per common share amount.
    (3)NIM - FTE, adjusted, is a non-GAAP financial measure and is calculated for the nine months ended September 30, 2022, by removing the net PAA accretion from the net interest income. For the nine months ended September 30, 2021, it is calculated by removing average PPP loans from average interest-earning assets and removing the associated interest income (net of 35 basis points assumed cost of funds on average PPP loan balances) from net interest income.
    (4)Calculated by dividing noninterest expense by the sum of net interest income plus noninterest income.
      

    Origin Bancorp, Inc.
    Consolidated Quarterly Statements of Income

     Three Months Ended
     September 30,
    2022
     June 30,
    2022
     March 31,
    2022
     December 31,
    2021
     September 30,
    2021
              
    Interest and dividend income(Dollars in thousands, except per share amounts, unaudited)
    Interest and fees on loans$79,803  $55,986  $51,183  $53,260  $53,182 
    Investment securities-taxable 7,801   7,116   5,113   4,691   3,449 
    Investment securities-nontaxable 2,151   1,493   1,400   1,493   1,582 
    Interest and dividend income on assets held in other financial institutions 1,482   1,193   587   686   538 
    Total interest and dividend income 91,237   65,788   58,283   60,130   58,751 
    Interest expense         
    Interest-bearing deposits 7,734   3,069   2,886   2,957   3,255 
    FHLB advances and other borrowings 2,717   1,392   1,094   1,161   1,118 
    Subordinated debentures 2,263   1,823   1,801   1,832   1,837 
    Total interest expense 12,714   6,284   5,781   5,950   6,210 
    Net interest income  78,523   59,504   52,502   54,180   52,541 
    Provision for credit losses 16,942   3,452   (327)  (2,647)  (3,921)
    Net interest income after provision for credit losses 61,581   56,052   52,829   56,827   56,462 
    Noninterest income         
    Service charges and fees 4,734   4,274   3,998   3,994   3,973 
    Insurance commission and fee income 5,666   5,693   6,456   2,826   3,451 
    Mortgage banking (loss) revenue (929)  2,354   4,096   2,857   2,728 
    Other fee income 1,162   638   598   702   783 
    Gain on sales of securities, net 1,664         75    
    Gain (loss) on sales and disposals of other assets, net 70   (279)     (97)  (8)
    Limited partnership investment income (loss) 112   282   (363)  50   3,078 
    Swap fee income (loss) 25   1   139   (285)  727 
    Other income 1,219   1,253   982   6,579   1,191 
    Total noninterest income 13,723   14,216   15,906   16,701   15,923 
    Noninterest expense         
    Salaries and employee benefits 31,834   27,310   26,488   24,718   23,629 
    Occupancy and equipment, net 5,399   4,514   4,427   4,306   4,353 
    Data processing 2,689   2,413   2,486   2,302   2,329 
    Office and operations 2,121   2,162   1,560   1,849   1,598 
    Loan related expenses 1,599   1,517   1,305   1,880   1,949 
    Professional services 1,188   420   1,060   923   912 
    Electronic banking 1,087   896   917   616   997 
    Advertising and marketing 1,196   859   871   1,147   863 
    Franchise tax expense 957   838   770   692   598 
    Regulatory assessments 877   802   626   526   664 
    Intangible asset amortization 1,872   525   537   194   194 
    Communications 279   252   281   286   359 
    Merger-related expense 3,614   807   571       
    Other expenses 1,529   835   875   907   720 
    Total noninterest expense 56,241   44,150   42,774   40,346   39,165 
    Income before income tax expense 19,063   26,118   25,961   33,182   33,220 
    Income tax expense 2,820   4,807   5,278   4,860   6,242 
    Net income$16,243  $21,311  $20,683  $28,322  $26,978 
    Basic earnings per common share$0.57  $0.90  $0.87  $1.21  $1.15 
    Diluted earnings per common share 0.57   0.90   0.87   1.20   1.14 
                        

    Origin Bancorp, Inc.
    Consolidated Balance Sheets

    (Dollars in thousands)September 30,
    2022
     June 30,
    2022
     March 31,
    2022
     December 31,
    2021
     September 30,
    2021
    Assets(Unaudited) (Unaudited) (Unaudited)   (Unaudited)
    Cash and due from banks$118,505  $123,499  $129,825  $133,334 $124,515
    Interest-bearing deposits in banks 181,965   200,421   454,619   572,284  227,450
    Total cash and cash equivalents 300,470   323,920   584,444   705,618  351,965
    Securities:         
    AFS 1,672,170   1,804,370   1,905,687   1,504,728  1,486,543
    Held to maturity, net of allowance for credit losses 11,285   4,288   4,831   22,767  37,702
    Securities carried at fair value through income 6,347   6,630   7,058   7,497  10,876
    Total securities 1,689,802   1,815,288   1,917,576   1,534,992  1,535,121
    Non-marketable equity securities held in other financial institutions 53,899   76,822   45,242   45,192  45,144
    Loans held for sale 59,714   62,493   80,295   80,387  109,956
    Loans 6,882,681   5,528,093   5,194,406   5,231,331  5,187,288
    Less: ALCL 83,359   63,123   62,173   64,586  69,947
    Loans, net of ALCL 6,799,322   5,464,970   5,132,233   5,166,745  5,117,341
    Premises and equipment, net 99,291   81,950   80,421   80,691  80,740
    Mortgage servicing rights 21,654   22,127   21,187   16,220  16,000
    Cash surrender value of bank-owned life insurance 38,885   38,742   38,547   38,352  38,162
    Goodwill 136,793   34,153   34,153   34,368  26,741
    Other intangible assets, net 52,384   15,900   16,425   16,962  3,089
    Accrued interest receivable and other assets 210,425   175,159   161,772   141,758  146,219
    Total assets$9,462,639  $8,111,524  $8,112,295  $7,861,285 $7,470,478
    Liabilities and Stockholders’ Equity         
    Noninterest-bearing deposits$2,667,489  $2,214,919  $2,295,682  $2,163,507 $1,980,107
    Interest-bearing deposits 4,361,423   3,598,417   3,947,714   3,864,058  3,600,654
    Time deposits 748,415   489,822   523,783   543,128  578,007
    Total deposits 7,777,327   6,303,158   6,767,179   6,570,693  6,158,768
    FHLB advances and other borrowings 450,456   894,581   305,560   309,801  309,152
    Subordinated debentures 201,687   157,540   157,478   157,417  157,357
    Accrued expenses and other liabilities 126,145   109,872   205,213   93,163  139,534
    Total liabilities 8,555,615   7,465,151   7,435,430   7,131,074  6,764,811
    Stockholders’ equity:         
    Common stock 153,309   119,038   118,744   118,733  117,480
    Additional paid-in capital 518,376   244,368   242,789   242,114  237,928
    Retained earnings 410,572   398,946   381,222   363,635  338,387
    Accumulated other comprehensive (loss) income (175,233)  (115,979)  (65,890)  5,729  11,872
    Total stockholders’ equity 907,024   646,373   676,865   730,211  705,667
    Total liabilities and stockholders’ equity$9,462,639  $8,111,524  $8,112,295  $7,861,285 $7,470,478
                      

    Origin Bancorp, Inc.
    Loan Data

     At and For the Three Months Ended
     September 30,
    2022
     June 30,
    2022
     March 31,
    2022
     December 31,
    2021
     September 30,
    2021
              
    LHFI(Dollars in thousands, unaudited)
    Commercial real estate$2,174,347  $1,909,054  $1,801,382  $1,693,512  $1,590,519 
    Construction/land/land development 853,311   635,556   593,350   530,083   518,920 
    Residential real estate 1,399,182   1,005,623   922,054   909,739   913,411 
    Total real estate loans 4,426,840   3,550,233   3,316,786   3,133,334   3,022,850 
    Commercial and industrial 1,967,037   1,430,239   1,358,597   1,454,235   1,435,203 
    Mortgage warehouse lines of credit 460,573   531,888   503,249   627,078   713,339 
    Consumer 28,231   15,733   15,774   16,684   15,896 
    Total LHFI 6,882,681   5,528,093   5,194,406   5,231,331   5,187,288 
    Less: allowance for loan credit losses ("ALCL") 83,359   63,123   62,173   64,586   69,947 
    LHFI, net$6,799,322  $5,464,970  $5,132,233  $5,166,745  $5,117,341 
              
    Nonperforming assets         
    Nonperforming LHFI         
    Commercial real estate$431  $224  $233  $512  $672 
    Construction/land/land development 366   373   256   338   592 
    Residential real estate 7,641   7,478   11,609   11,647   9,377 
    Commercial and industrial 5,134   5,930   8,987   12,306   13,873 
    Mortgage warehouse lines of credit 385             
    Consumer 74   80   96   100   41 
    Total nonperforming LHFI 14,031   14,085   21,181   24,903   24,555 
    Nonperforming loans held for sale 2,698   2,461   2,698   1,754   2,074 
    Total nonperforming loans 16,729   16,546   23,879   26,657   26,629 
    Repossessed assets 1,781   2,009   1,703   1,860   4,574 
    Total nonperforming assets$18,510  $18,555  $25,582  $28,517  $31,203 
    Classified assets$71,562  $54,124  $72,082  $71,232  $80,165 
    Past due LHFI (1) 10,866   7,186   21,753   25,615   25,954 
              
    Allowance for loan credit losses         
    Balance at beginning of period$63,123  $62,173  $64,586  $69,947  $77,104 
    Provision for loan credit losses 15,787   2,503   (659)  (2,668)  (4,266)
    ALCL - BTH merger 5,527             
    Loans charged off 1,628   2,192   2,402   3,162   3,035 
    Loan recoveries 550   639   648   469   144 
    Net charge-offs 1,078   1,553   1,754   2,693   2,891 
    Balance at end of period$83,359  $63,123  $62,173  $64,586  $69,947 
      
    Credit quality ratios(Dollars in thousands, unaudited)
    Total nonperforming assets to total assets 0.20%  0.23%  0.32%  0.36%  0.42%
    Total nonperforming loans to total loans 0.24   0.30   0.45   0.50   0.50 
    Nonperforming LHFI to LHFI 0.20   0.25   0.41   0.48   0.47 
    Past due LHFI to LHFI 0.16   0.13   0.42   0.49   0.50 
    ALCL to nonperforming LHFI 594.11   448.16   293.53   259.35   284.86 
    ALCL to total LHFI 1.21   1.14   1.20   1.23   1.35 
    ALCL to total LHFI, adjusted (2) 1.29   1.25   1.33   1.43   1.63 
    Net charge-offs to total average LHFI (annualized) 0.07   0.12   0.14   0.21   0.22 


    _____________________________________________________
    (1)Past due LHFI are defined as loans 30 days or more past due.
    (2)The ALCL to total LHFI, adjusted is calculated at September 30, 2022, by excluding the ALCL for warehouse loans from the total LHFI ALCL in the numerator and excluding the warehouse loans from the LHFI in the denominator. For the periods prior to September 30, 2022, it is calculated by excluding the ALCL for warehouse loans from the total LHFI ALCL in the numerator and excluding the PPP and warehouse loans from the LHFI in the denominator. Due to their low-risk profile, mortgage warehouse loans require a disproportionately low allocation of the ALCL and PPP loans are fully guaranteed by the SBA.
      

    Origin Bancorp, Inc.
    Average Balances and Yields/Rates

     Three Months Ended
     September 30, 2022 June 30, 2022 September 30, 2021
     Average
    Balance
     Yield/Rate Average
    Balance
     Yield/Rate Average
    Balance
     Yield/Rate
                
    Assets(Dollars in thousands, unaudited)
    Commercial real estate$2,046,411 4.64% $1,828,700 4.17% $1,505,731 4.08%
    Construction/land/land development 760,682 5.20   587,872 4.52   527,881 4.10 
    Residential real estate 1,249,746 4.36   966,363 4.30   936,375 4.14 
    Commercial and industrial ("C&I") 1,816,912 5.64   1,398,802 4.26   1,492,375 4.14 
    Mortgage warehouse lines of credit 491,584 4.53   444,851 4.10   660,715 3.58 
    Consumer 24,137 6.80   15,979 6.03   16,222 5.81 
    LHFI 6,389,472 4.94   5,242,567 4.26   5,139,299 4.05 
    Loans held for sale 29,927 4.12   37,678 3.69   72,739 3.85 
    Loans receivable 6,419,399 4.93   5,280,245 4.25   5,212,038 4.05 
    Investment securities-taxable 1,547,848 2.00   1,610,400 1.77   853,277 1.60 
    Investment securities-nontaxable 317,175 2.69   258,178 2.32   280,189 2.24 
    Non-marketable equity securities held in other financial institutions 73,819 2.10   51,052 4.79   43,725 2.22 
    Interest-bearing balances due from banks 206,781 2.09   277,800 0.84   610,863 0.19 
    Total interest-earning assets 8,565,022 4.23   7,477,675 3.53   7,000,092 3.33 
    Noninterest-earning assets(1) 637,399    467,045    464,721  
    Total assets$9,202,421   $7,944,720   $7,464,813  
                
    Liabilities and Stockholders’ Equity          
    Liabilities           
    Interest-bearing liabilities           
    Savings and interest-bearing transaction accounts$4,157,092 0.66% $3,767,275 0.26% $3,657,625 0.25%
    Time deposits 669,900 0.51   503,325 0.49   582,384 0.67 
    Total interest-bearing deposits 4,826,992 0.64   4,270,600 0.29   4,240,009 0.30 
    FHLB advances and other borrowings 538,020 2.00   417,121 1.34   263,956 1.68 
    Subordinated debentures 186,803 4.81   157,517 4.64   157,321 4.63 
    Total interest-bearing liabilities 5,551,815 0.91   4,845,238 0.52   4,661,286 0.53 
    Noninterest-bearing liabilities           
    Noninterest-bearing deposits 2,582,500    2,288,732    1,965,843  
    Other liabilities(1) 129,354    143,427    134,079  
    Total liabilities 8,263,669    7,277,397    6,761,208  
    Stockholders’ Equity 938,752    667,323    703,605  
    Total liabilities and stockholders’ equity$9,202,421   $7,944,720   $7,464,813  
    Net interest spread  3.32%   3.01%   2.80%
    NIM  3.64    3.19    2.98 
    NIM - (FTE)(2)  3.68    3.23    3.02 
    NIM - FTE, adjusted (3)  3.61    3.20    2.94 


    _____________________________________________________
    (1)Includes Government National Mortgage Association (“GNMA”) repurchase average balances of $29.1 million, $35.8 million, and $51.3 million for the three months ended September 30, 2022, June 30, 2022, and September 30, 2021, respectively. The GNMA repurchase asset and liability are recorded as equal offsetting amounts in the consolidated balance sheets, with the asset included in Loans held for sale and the liability included in FHLB advances and other borrowings.
    (2)In order to present pre-tax income and resulting yields on tax-exempt investments comparable to those on taxable investments, a tax-equivalent adjustment has been computed. This adjustment also includes income tax credits received on Qualified School Construction Bonds.
    (3)NIM - FTE, adjusted, is calculated for the quarter ended September 30, 2022, by removing the net PAA accretion from the net interest income. For periods prior to September 30, 2022, it is calculated by removing average PPP loans from average interest-earning assets and removing the associated interest income (net of 35 basis points assumed cost of funds on average PPP loan balances) from net interest income.
      

     Origin Bancorp, Inc.
    Non-GAAP Financial Measures

     At and For the Three Months Ended
     September 30,
    2022
     June 30,
    2022
     March 31,
    2022
     December 31,
    2021
     September 30,
    2021
              
    Calculation of PTPP earnings:(Dollars in thousands, except per share amounts, unaudited)
    Net income$16,243  $21,311  $20,683  $28,322  $26,978 
    Plus: provision for credit losses 16,942   3,452   (327)  (2,647)  (3,921)
    Plus: income tax expense 2,820   4,807   5,278   4,860   6,242 
    PTPP Earnings$36,005  $29,570  $25,634  $30,535  $29,299 
              
    Calculation of PTPP ROA and PTPP ROE:         
    PTPP earnings$36,005  $29,570  $25,634  $30,535  $29,299 
    Divided by number of days in the quarter 92   91   90   92   92 
    Multiplied by the number of days in the year 365   365   365   365   365 
    PTPP earnings, annualized$142,846  $118,605  $103,960  $121,144  $116,241 
              
    Divided by total average assets 9,202,421   7,944,720   8,045,246   7,559,570   7,464,813 
    PTPP ROA (annualized) 1.55%  1.49%  1.29%  1.60%  1.56%
              
    Divided by total average stockholder’s equity$938,752  $667,323  $722,504  $715,614  $703,605 
    PTPP ROE (annualized) 15.22%  17.77%  14.39%  16.93%  16.52%
              
    Calculation of core efficiency ratio:         
    Net interest income$78,523  $59,504  $52,502  $54,180  $52,541 
    Less: insurance and mortgage net interest income 1,208   1,082   875   946   1,048 
    Total noninterest income 13,723   14,216   15,906   16,701   15,923 
    Less: insurance and mortgage noninterest income 4,737   8,047   10,552   5,683   6,179 
    Less: gain on fair value of the Lincoln Agency          5,200    
    Less: gain on sale of securities, net 1,664         75    
    Adjusted total revenue$84,637  $64,591  $56,981  $58,977  $61,237 
    Total noninterest expense$56,241  $44,150  $42,774  $40,346  $39,165 
    Less: insurance and mortgage noninterest expense 8,479   8,397   8,626   6,580   6,688 
    Less: merger-related expenses 3,614   807   571       
    Adjusted total noninterest expense 44,148   34,946   33,577   33,766   32,477 
              
    Efficiency ratio 60.97%  59.89%  62.53%  56.92%  57.21%
    Core efficiency ratio 52.16   54.10   58.93   57.25   53.03 
              
    Calculation of tangible book value per common share and adjusted tangible book value per common share:  
    Total common stockholders’ equity$907,024  $646,373  $676,865  $730,211  $705,667 
    Less: goodwill 136,793   34,153   34,153   34,368   26,741 
    Less: other intangible assets, net 52,384   15,900   16,425   16,962   3,089 
    Tangible common equity 717,847   596,320   626,287   678,881   675,837 
    Less: accumulated other comprehensive (loss) income (175,233)  (115,979)  (65,890)  5,729   11,872 
    Adjusted tangible common equity 893,080   712,299   692,177   673,152   663,965 
    Divided by common shares outstanding at the end of the period 30,661,734   23,807,677   23,748,748   23,746,502   23,496,058 
    Tangible book value per common share$23.41  $25.05  $26.37  $28.59  $28.76 
    Adjusted tangible book value per common share$29.13  $
    29.92
      $29.15  $28.35  $28.26 
     At and For the Three Months Ended
     September 30,
    2022
     June 30,
    2022
     March 31,
    2022
     December 31,
    2021
     September 30,
    2021
    Calculation of adjusted net income:         
    Net interest income after provision for credit losses$61,581  $56,052  $52,829  $56,827  $56,462 
    Add: CECL provision for non-PCD loans 14,890             
    Adjusted net interest income after provision for credit losses 76,471   56,052   52,829   56,827   56,462 
              
    Total noninterest income 13,723   14,216   15,906   16,701   15,923 
    Less: GNMA MSR impairment (1,950)            
    Less: gain on sales of securities, net 1,664         75    
    Less: Gain on fair value of the Lincoln Agency          5,200    
    Adjusted total noninterest income 14,009   14,216   15,906   11,426   15,923 
              
    Total noninterest expense 56,241   44,150   42,774   40,346   39,165 
    Less: merger-related expenses 3,614   807   571       
    Adjusted total noninterest expense 52,627   43,343   42,203   40,346   39,165 
              
    Income tax expense 2,820   4,807   5,278   4,860   6,242 
    Add: income tax expense 3,946   169   120   (1,108)   
    Adjusted income tax expense 6,766   4,976   5,398   3,752   6,242 
              
    Adjusted net income$31,087  $21,949  $21,134  $24,155  $26,978 
              
    Calculation of adjusted ROA and adjusted ROE:        
    Adjusted net income$31,087  $21,949  $21,134  $24,155  $26,978 
    Divided by number of days in the quarter 92   91   90   92   92 
    Multiplied by number of days in the year 365   365   365   365   365 
    Annualized adjusted net income$123,334  $88,037  $85,710  $95,832  $107,032 
    Divided by total average assets$9,202,421  $7,944,720  $8,045,246  $7,559,570  $7,464,813 
    Adjusted ROA (annualized) 1.34%  1.11%  1.07%  1.27%  1.43%
    Divided by total average stockholders equity$938,752  $667,323  $722,504  $715,614  $703,605 
    Adjusted ROE (annualized) 13.14%  13.19%  11.86%  13.39%  15.21%
              
    Calculation of adjusted EPS and adjusted dilutive EPS:        
    Numerator:         
    Adjusted net income$31,087  $21,949  $21,134  $24,155  $26,978 
    Denominator:         
    Weighted average common shares outstanding 28,298,984   23,740,611   23,700,550   23,484,056   23,429,705 
    Weighted average diluted common shares outstanding 28,481,619   23,788,164   23,770,791   23,609,874   23,613,010 
              
    Adjusted basic earnings per share$1.10  $0.92  $0.89  $1.03  $1.15 
    Adjusted diluted earnings per share 1.09   0.92   0.89   1.02   1.14 
                        

    Origin Bancorp, Inc.
    Non-GAAP Financial Measures

     Nine Months Ended September 30,
    (Dollars in thousands, except per share amounts, unaudited) 2022   2021 
    Calculation of PTPP earnings: 
    Net income$58,237  $80,224 
    Plus: provision for credit losses 20,067   (8,118)
    Plus: income tax expense 12,905   19,025 
    PTPP earnings$91,209  $91,131 
        
    Calculation of PTPP ROA and PTPP ROE:  
    PTPP earnings$91,209  $91,131 
    Divided by number of days in this period 273   273 
    Multiplied by the number of days in the year 365   365 
    PTPP earnings, annualized$121,946  $121,842 
        
    Divided by total average assets$8,401,701  $7,441,055 
    PTPP ROA 1.45%  1.64%
        
    Divided by total average stockholder’s equity$776,985  $678,223 
    PTPP ROE 15.69%  17.96%
        
    Calculation of core efficiency ratio:   
    Net interest income$190,529  $162,072 
    Less: insurance and mortgage net interest income 3,165   3,030 
    Total noninterest income 43,845   45,492 
    Less: insurance and mortgage noninterest income 23,336   20,342 
    Less: gain on sale of securities, net 1,664   1,673 
    Adjusted total revenue$206,209  $182,519 
        
    Total noninterest expense$143,165  $116,433 
    Less: insurance and mortgage noninterest expense 25,502   20,904 
    Less: merger-related expenses 4,992    
    Less: other noninterest expense    1,613 
    Adjusted total expense$112,671  $93,916 
        
    Efficiency ratio 61.08%  56.09%
    Core efficiency ratio 54.64%  51.46%
        
     Nine Months Ended September 30,
    (Dollars in thousands, except per share amounts, unaudited) 2022   2021 
    Calculation of adjusted net income:   
    Net interest income after provision for credit losses$170,462  $170,190 
    Add: CECL provision for non-PCD loans 14,890    
    Adjusted net interest income after provision for credit losses 185,352   170,190 
        
    Total noninterest income 43,845   45,492 
    Less: GNMA MSR impairment (1,950)   
    Less: gain on sales of securities, net 1,664   1,673 
    Adjusted total noninterest income 44,131   43,819 
        
    Total noninterest expense 143,165   116,433 
    Less: merger-related expense 4,992    
    Adjusted total noninterest expense 138,173   116,433 
        
    Income tax expense 12,905   19,025 
    Add: income tax expense 4,235   (351)
    Adjusted income tax expense 17,140   18,674 
        
    Adjusted net income$74,170  $78,902 
        
    Calculation of adjusted ROA and adjusted ROE:    
    Adjusted net income$74,170  $78,902 
    Divided by number of days in the quarter 273   273 
    Multiplied by number of days in the year 365   365 
    Annualized adjusted net income$99,165  $105,492 
    Divided by total average assets$8,401,701  $7,441,055 
    Adjusted ROA (annualized) 1.18%  1.42%
    Divided by total average stockholders equity$776,985  $678,223 
    Adjusted ROE (annualized)  12.76%  15.55%
        
    Calculation of adjusted EPS and Dilutive EPS:   
    Numerator:   
    Adjusted net income$74,170  $78,902 
    Denominator:   
    Weighted average common shares outstanding 25,263,681   23,413,794 
    Weighted average diluted common shares outstanding 25,366,807   23,606,597 
        
    Adjusted basic earnings per share$2.94  $3.37 
    Adjusted diluted earnings per share 2.92   3.34 

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