• Origin Bancorp, Inc. Reports Earnings for Second Quarter 2023

    来源: Nasdaq GlobeNewswire / 26 7月 2023 15:15:02   America/Chicago

    RUSTON, La., July 26, 2023 (GLOBE NEWSWIRE) -- Origin Bancorp, Inc. (NYSE: OBK) (“Origin” or the “Company”), the holding company for Origin Bank (the “Bank”), today announced net income of $21.8 million, or $0.70 diluted earnings per share for the quarter ended June 30, 2023, compared to net income of $24.3 million, or $0.79 diluted earnings per share, for the quarter ended March 31, 2023. Adjusted pre-tax, pre-provision ("adjusted PTPP")(1) earnings were $31.6 million, for the quarter ended June 30, 2023.

    “As we enter the second half of the year, Origin is operating from a position of strength as we continue to execute on our long-term strategy,” said Drake Mills, chairman, president and CEO of Origin Bancorp, Inc. “While we are mindful of the challenges facing the entire industry, this company has proven that we can maximize the opportunities before us, and come out of economic cycles a stronger, more efficient company.”

    (1) Adjusted PTPP earnings is a non-GAAP financial measure, please see the last few pages of this document for a reconciliation of this alternative financial measure to its comparable GAAP measure.

    Financial Highlights

    • Total loans held for investment ("LHFI"), excluding mortgage warehouse lines of credit, were $7.09 billion at June 30, 2023, reflecting an increase of $46.8 million, or 0.7%, compared to March 31, 2023.
    • Total deposits were $8.49 billion at June 30, 2023, reflecting an increase of $315.7 million, or 3.9%, compared to March 31, 2023.
    • Net interest income was $75.3 million for the quarter ended June 30, 2023, reflecting a decrease of $1.9 million, or 2.4%, compared to the linked quarter.
    • Book value per common share was $32.33 at June 30, 2023, reflecting an increase of $0.08, or 0.2%, compared to the linked quarter. Tangible book value per common share(1) was $26.71 at June 30, 2023, reflecting an increase of $0.18, or 0.7%, compared to the linked quarter.
    • At June 30, 2023, and March 31, 2023, Company level common equity Tier 1 capital to risk-weighted assets was 11.01%, and 11.08%, respectively, the Tier 1 leverage ratio was 9.65% and 9.79%, respectively, and the total capital ratio was 14.11% and 14.30%, respectively. Tangible common equity to tangible assets(1) was 8.25% at June 30, 2023, compared to 8.02% at March 31, 2023.
    • LHFI, excluding mortgage warehouse lines of credit, to deposits were 83.5% at June 30, 2023, compared to 86.1% at March 31, 2023. Cash and liquid securities as a percentage of total assets was 11.1% at June 30, 2023, compared to 14.3% at March 31, 2023.

    (1) Tangible book value per common share and tangible common equity to tangible assets 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.

    Results of Operations for the Three Months Ended June 30, 2023

    Net Interest Income and Net Interest Margin

    Net interest income for the quarter ended June 30, 2023, was $75.3 million, a decrease of $1.9 million, or 2.4%, compared to the linked quarter, due primarily to a $14.0 million increase in total interest expense, partially offset by a $12.2 million increase in total interest income. Increases in interest rates drove an $8.9 million increase in total deposit interest expense, and higher average interest-bearing deposit balances drove another $3.1 million increase in total deposit interest expense, primarily due to higher average brokered and time deposit balances. An additional $1.9 million increase in total interest expense was due to higher average balances of FHLB advances and other borrowings during the current quarter compared to the linked quarter. Increases in average interest-earning asset balances drove a $6.1 million increase in total interest income, of which $4.3 million was due to higher average LHFI balances, while increases in interest rates on average interest-earning assets drove another $6.1 million increase in total interest income, of which $4.7 million was due to higher interest rates on LHFI.

    The net purchase accounting accretion declined to $530,000, a decrease of $1.2 million, for the three months ended June 30, 2023, compared to the three months ended March 31, 2023. The table below presents the estimated loan and deposit accretion and subordinated indebtedness amortization resulting from merger purchase accounting adjustments for the periods shown.

     Loan
    Accretion Income    		 Deposit Accretion Income Subordinated Indebtedness
    Amortization Expense    		 Total Impact to Net Interest Income
    3Q2022$1,187  $238 $(10) $1,415 
    4Q2022 1,653   259  (15)  1,897 
    1Q2023 1,617   101  (15)  1,703 
    2Q2023 490   55  (15)  530 
    Total actual realized net purchase accounting accretion$4,947  $653 $(55) $5,545 
            
    Remaining 2023$(84) $53 $(32) $(63)
    Thereafter 223   23  (706)  (460)
    Total remaining net purchase accounting accretion at June 30, 2023$139  $76 $(738) $(523)
                   

    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. On March 17, 2022, the Federal Reserve began an aggressive campaign to combat inflation with its first target rate range increase to 0.25% to 0.50%. Subsequently, it increased the target range six more times during 2022 and three more times during 2023, with the most recent and current Federal Funds target rate range being set on May 3, 2023, at 5.00% to 5.25%. By June 30, 2023, the Federal Funds target rate range had increased 475 basis points from March 17, 2022, and in order to remain competitive as market interest rates increased, we increased interest rates paid on our deposits.

    The average rate on interest-bearing deposits increased to 3.05% for the quarter ended June 30, 2023, compared to 2.49% for the quarter ended March 31, 2023. The average interest-bearing deposit balances increased $494.3 million to $6.12 billion for the quarter ended June 30, 2023, from $5.63 billion for the linked quarter, of which $317.7 million and $84.1 million, respectively, were driven by higher average brokered and non-brokered time deposit balances. The average noninterest-bearing deposit balances declined $252.2 million during the quarter ended June 30, 2023, as depositors sought out safety in the form of FDIC insurance-covered balances and higher yielding investments amid increasing interest rates in the marketplace.

    The average rate on FHLB advances and other borrowings increased to 5.26% for the quarter ended June 30, 2023, compared to 5.21% for the linked quarter. Additionally, the yield on LHFI was 6.18% and 6.03% for the quarter ended June 30, 2023, and March 31, 2023, respectively, and average LHFI balances increased to $7.47 billion for the quarter ended June 30, 2023, compared to $7.15 billion for the linked quarter. The yield on LHFI, excluding the purchase accounting accretion, was 6.16% for the quarter ended June 30, 2023, compared to 5.94% for the linked quarter.

    During March 2023, the Company made a strategic decision to borrow and hold approximately $700.0 million of excess cash for contingency liquidity for the majority of the quarter ended June 30, 2023. As of June 30, 2023, the Company repaid the excess contingency liquidity. The excess liquidity was held at a weighted-average rate of 5.17% and added $368.7 million in average interest-bearing assets for the quarter ended June 30, 2023, which negatively impacted the fully tax-equivalent net interest margin (“NIM”) by 12 basis points.

    The fully tax-equivalent NIM was impacted by margin compression as rates on interest-bearing liabilities rose faster than yields on interest-earning assets during the last three quarters. The fully tax-equivalent NIM was 3.16% for the quarter ended June 30, 2023, a 28 and a 7 basis point decrease compared to the linked quarter and the prior year same quarter, respectively. The yield earned on interest-earning assets for the quarter ended June 30, 2023, was 5.50%, an increase of 19 and 197 basis points compared to the linked quarter and the prior year same quarter, respectively. The average rate paid on total deposits for the quarter ended June 30, 2023, was 2.26%, representing a 51 and a 207 basis point increase compared to the linked quarter and the prior year same quarter, respectively. The average rate paid on FHLB and other borrowings also increased to 5.26%, reflecting a 5 and a 392 basis point increase compared to the linked quarter and prior year same quarter, respectively. The net increase in accretion income due to the BT Holdings, Inc. (“BTH”) merger increased the fully tax-equivalent NIM by approximately two and eight basis points for the current quarter and the linked quarter, respectively.

    Credit Quality

    The table below includes key credit quality information:

     At and For the Three Months Ended $ Change % Change
    (Dollars in thousands, unaudited)June 30,
    2023    		 March 31,
    2023    		 June 30,
    2022    		 Linked
    Quarter    		 Linked
    Quarter
    Past due LHFI$19,836  $11,498  $7,186  $8,338   72.5%
    Allowance for Loan Credit Losses (“ALCL”) 94,353   92,008   63,123   2,345   2.5 
    Classified loans 84,298   86,170   52,115   (1,872)  (2.2)
    Total nonperforming LHFI 33,609   17,078   14,085   16,531   96.8 
    Provision for credit losses 4,306   6,197   3,452   (1,891)  (30.5)
    Net charge-offs 1,919   1,311   1,553   608   46.4 
    Credit quality ratios(1):         
    ALCL to nonperforming LHFI 280.74%  538.75%  448.16%  N/A   -25801 bp 
    ALCL to total LHFI 1.24   1.25   1.14   N/A   -1 bp 
    ALCL to total LHFI, adjusted(2) 1.32   1.30   1.25   N/A   2 bp 
    Nonperforming LHFI to LHFI 0.44   0.23   0.25   N/A   21 bp 
    Net charge-offs to total average LHFI (annualized) 0.10   0.07   0.12   N/A   3 bp 

    ___________________________
    (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 June 30, 2023, and March 31, 2023, 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. At June 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 $4.3 million during the quarter ended June 30, 2023, compared to $6.2 million recorded during the linked quarter. The decrease is primarily due to lower loan growth, exclusive of mortgage warehouse lines of credit, during the quarter ended June 30, 2023, compared to March 31, 2023.

    The ALCL to nonperforming LHFI decreased to 280.7% at June 30, 2023, compared to 538.8% at March 31, 2023, driven by an increase of $16.5 million in the Company’s nonperforming LHFI, offset by an increase of $2.3 million in the ALCL for the quarter. The $16.5 million increase in nonperforming LHFI at June 30, 2023, included $7.1 million from the reclassification of mortgage loans from the held for sale portfolio to the held for investment portfolio. While nonperforming LHFI to LHFI increased over the past quarter, the current level of 0.44% compares to levels of 0.41% and 0.48%, as of March 31, 2022, and December 31, 2021, respectively.

    Past due LHFI increased $8.3 million to $19.8 million from $11.5 million for the linked quarter, primarily due to increases in past due commercial and industrial loans. On a percentage basis, past due LHFI to LHFI of 0.26%, compares favorably to levels of 0.42% and 0.49%, as of March 31, 2022, and December 31, 2021, respectively. Classified loans decreased $1.9 million at June 30, 2023, compared to the linked quarter, and represented 1.11% of LHFI at June 30, 2023, compared to 1.17% at March 31, 2023.

    Noninterest Income

    Noninterest income for the quarter ended June 30, 2023, was $15.6 million, a decrease of $748,000, or 4.6%, from the linked quarter. The decrease from the linked quarter was primarily driven by decreases of $826,000 and $379,000 on insurance commission and fee income and mortgage banking revenue, respectively. These decreases were partially offset by a $484,000 increase in other noninterest income.

    The decrease in insurance commission and fee income was primarily driven by seasonality, as there is typically higher annual contingency fee income in the first quarter of each year.

    The decrease in mortgage banking revenue was primarily due to decreased mortgage production during the current quarter, compared to the linked quarter.

    The increase in other noninterest income was due to a $471,000 gain realized from repurchasing, at a discount, $5.0 million in the Company’s subordinated promissory notes from the FDIC through its failed bank operation process.

    Noninterest Expense

    Noninterest expense for the quarter ended June 30, 2023, was $58.9 million, an increase of $2.1 million, or 3.7%, compared to the linked quarter. The increase from the linked quarter was primarily due to increases of $802,000, $781,000 and $413,000 in salaries and employee benefit, regulatory assessments and office and operations expenses, respectively.

    The increase in salaries and employee benefit expense was primarily driven by nine new positions added to the Company’s mortgage group, including the Litton mortgage team.

    The increase in regulatory assessment expense was due to an 192 basis point increase in the FDIC’s Uniform Assessment rate which negatively impacted the Company’s regulatory expenses.

    The increase in office and operations expense was due to higher business development expenses incurred during the current quarter.

    Income Taxes

    The effective tax rate was 21.5% during the quarter ended June 30, 2023, compared to 20.5% during the linked quarter and 18.4% during the quarter ended June 30, 2022. The effective tax rate for the current quarter was higher due to increased state tax compared to the linked quarter and the quarter ended June 30, 2022.

    Financial Condition

    Loans

    • Total LHFI at June 30, 2023, were $7.62 billion, an increase of $246.9 million, or 3.3%, from $7.38 billion at March 31, 2023, and an increase of $2.09 billion, or 37.9%, compared to June 30, 2022.
    • Mortgage warehouse lines of credit totaled $537.6 million at June 30, 2023, an increase of $200.1 million, or 59.3%, compared to the linked quarter.
    • Total real estate loans were $5.08 billion at June 30, 2023, an increase of $161.5 million, or 3.3%, from the linked quarter, with construction/land/land development loan growth contributing $73.6 million of the total real estate loan growth.
    • Total commercial and industrial loans were $1.98 billion at June 30, 2023, a decrease of $114.1 million, or 5.5%, compared to the linked quarter.

    Securities

    • Total securities at June 30, 2023, were $1.55 billion, a decrease of $55.9 million, or 3.5%, compared to the linked quarter and a decrease of $262.2 million, or 14.4%, compared to June 30, 2022.
    • The decrease was primarily due to maturities and calls, as well as normal principal paydowns, there were no sales of securities during the current quarter.
    • Accumulated other comprehensive loss, net of taxes, primarily associated with the available for sale (“AFS”) portfolio, was $152.9 million at June 30, 2023, an increase of $14.4 million from the linked quarter.
    • The weighted average effective duration for the total securities portfolio was 4.13 years as of June 30, 2023, compared to 4.17 years as of March 31, 2023.

    Deposits

    • Total deposits at June 30, 2023, were $8.49 billion, an increase of $315.7 million, or 3.9%, compared to the linked quarter, and represented an increase of $2.19 billion, or 34.7%, from June 30, 2022.
    • The increase in the current quarter compared to the linked quarter was primarily due to increases of $387.9 million and $92.4 million in brokered deposits and non-brokered time deposits, respectively, which was partially offset by a $124.1 million decrease in noninterest-bearing deposits.
    • At June 30, 2023, noninterest-bearing deposits as a percentage of total deposits were 25.0%, compared to 27.5% and 35.1% at March 31, 2023, and June 30, 2022, respectively.
    • Uninsured/uncollateralized deposits totaled $2.84 billion at June 30, 2023, compared to $3.09 billion at March 31, 2023, representing 33.4% and 37.8% of total deposits at June 30, 2023 and March 31, 2023, respectively.

    Borrowings

    • FHLB advances and other borrowings at June 30, 2023, were $342.9 million, a decrease of $532.6 million, or 60.8%, compared to the linked quarter and represented a decrease of $551.7 million, or 61.7%, from June 30, 2022. The decrease was primarily due to the repayment of approximately $700.0 million in excess contingency liquidity borrowed during March 2023 and held for the majority of the quarter ended June 30, 2023.
    • Average FHLB advances were $599.2 million for the quarter ended June 30, 2023, an increase of $167.0 million, or 38.6%, from $432.2 million for the quarter ended March 31, 2023 and an increase of $189.3 million, or 46.2%, from June 30, 2022.

    Stockholders’ Equity

    • Stockholders’ equity was $997.9 million at June 30, 2023, an increase of $5.3 million, or 0.5%, compared to $992.6 million at March 31, 2023, and an increase of $351.5 million, or 54.4%, compared to $646.4 million, at June 30, 2022.
    • The increase in stockholders’ equity from the linked quarter is primarily due to net income of $21.8 million, partially offset by an increase in accumulated other comprehensive loss, net of tax, of $14.4 million and dividends declared of $4.7 million during the current quarter.

    Conference Call

    Origin will hold a conference call to discuss its second quarter 2023 results on Thursday, July 27, 2023, at 8:00 a.m. Central Time (9:00 a.m. Eastern Time). To participate in the live conference call, please dial +1 (929) 272-1574 (U.S. Local / International 1); +1 (857) 999-3259 (U.S. Local / International 2); +1 (800) 528-1066 (U.S. Toll Free), enter Conference ID: 35632 and request to be joined into the Origin Bancorp, Inc. (OBK) 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://dealroadshow.com/e/ORIGINQ223.

    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 61 banking centers located in Dallas/Fort Worth, East Texas, Houston, North Louisiana and Mississippi. For more information, visit www.origin.bank.

    Non-GAAP Financial Measures

    Origin reports its results in accordance with generally accepted accounting principles in the United States of America ("GAAP"). However, management believes that certain supplemental non-GAAP financial measures may provide meaningful information to investors that is useful in understanding Origin's results of operations and underlying trends in its business. However, non-GAAP financial measures are supplemental and should be viewed in addition to, and not as an alternative for, Origin's reported results prepared in accordance with GAAP. The following are the non-GAAP measures used in this release: adjusted net income, adjusted PTPP earnings, adjusted diluted EPS, NIM-FTE, adjusted, adjusted ROAA, adjusted PTPP ROAA, adjusted ROAE, adjusted PTPP ROAE, tangible book value per common share, adjusted tangible book value per common share, tangible common equity to tangible assets, ROATCE, adjusted ROATCE and adjusted efficiency ratio.

    Please see the last few pages of this release for reconciliations of non-GAAP measures to the most directly comparable financial measures calculated in accordance with GAAP.

    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 strategies, projected plans and objectives, and any expected purchases of its outstanding common stock, and related transactions and other projections based on macroeconomic and industry trends, including 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: potential impacts of the recent adverse developments in the banking industry highlighted by high-profile bank failures, including impacts on customer confidence, deposit outflows, liquidity and the regulatory response thereto; the impact of current and future economic conditions generally and in the financial services industry, nationally and within Origin’s primary market areas, including the effects of declines in the real estate market, high unemployment rates, inflationary pressures, elevated interest rates and slowdowns in economic growth, as well as the financial stress on borrowers and changes to customer and client behavior as a result of the foregoing; 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, competition, and the cost of doing business); the effectiveness of Origin’s risk management framework and quantitative models; Origin’s inability to receive dividends from Origin Bank and to service debt, pay dividends to Origin’s common stockholders, repurchase Origin’s shares of common stock and satisfy obligations as they become due; the impact of 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, as well as from fintech companies; 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; a deterioration of the credit rating for U.S. long-term sovereign debt or actions that the U.S. government may take to avoid exceeding the debt ceiling; 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 and the impact of any replacement alternatives such as the Secured Overnight Financing Rate 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; the impact of generative artificial intelligence; and system failures, cybersecurity threats or security breaches and the cost of defending against them. For a discussion of these and other risks that may cause actual results to differ from expectations, please refer to the sections titled “Cautionary Note Regarding Forward-Looking Statements” and “Risk Factors” in Origin’s most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission and any updates to those sections set forth in Origin’s subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. If one or more events related to these or other risks or uncertainties materialize, or if Origin’s underlying assumptions prove to be incorrect, actual results may differ materially from what Origin anticipates. Accordingly, you should not place undue reliance on any forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made, and Origin does not undertake any obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise.

    New risks and uncertainties arise from time to time, and it is not possible for Origin to predict those events or how they may affect Origin. In addition, Origin cannot assess the impact of each factor on Origin’s business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. 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
    (Unaudited)

     Three Months Ended
     June 30,
    2023    		 March 31,
    2023    		 December 31,
    2022    		 September 30,
    2022    		 June 30,
    2022
              
    Income statement and share amounts(Dollars in thousands, except per share amounts)
    Net interest income$75,291  $77,147  $84,749  $78,523  $59,504 
    Provision for credit losses 4,306   6,197   4,624   16,942   3,452 
    Noninterest income 15,636   16,384   13,429   13,723   14,216 
    Noninterest expense 58,887   56,760   57,254   56,241   44,150 
    Income before income tax expense 27,734   30,574   36,300   19,063   26,118 
    Income tax expense 5,974   6,272   6,822   2,820   4,807 
    Net income$21,760  $24,302  $29,478  $16,243  $21,311 
    Adjusted net income(1)$21,388  $24,188  $30,409  $31,087  $21,949 
    Adjusted PTPP earnings(1) 31,569   36,627   42,103   39,905   30,377 
    Basic earnings per common share 0.71   0.79   0.96   0.57   0.90 
    Diluted earnings per common share 0.70   0.79   0.95   0.57   0.90 
    Adjusted diluted earnings per common share(1) 0.69   0.78   0.99   1.09   0.92 
    Dividends declared per common share 0.15   0.15   0.15   0.15   0.15 
    Weighted average common shares outstanding - basic 30,791,397   30,742,902   30,674,389   28,298,984   23,740,611 
    Weighted average common shares outstanding - diluted 30,872,834   30,882,156   30,867,511   28,481,619   23,788,164 
              
    Balance sheet data         
    Total LHFI$7,622,689  $7,375,823  $7,090,022  $6,882,681  $5,528,093 
    Total assets 10,165,163   10,358,516   9,686,067   9,462,639   8,111,524 
    Total deposits 8,490,043   8,174,310   7,775,702   7,777,327   6,303,158 
    Total stockholders’ equity 997,859   992,587   949,943   907,024   646,373 
              
    Performance metrics and capital ratios         
    Yield on LHFI 6.18%  6.03%  5.63%  4.94%  4.26%
    Yield on interest-earnings assets 5.50   5.31   4.96   4.23   3.53 
    Cost of interest-bearing deposits 3.05   2.49   1.54   0.64   0.29 
    Cost of total deposits 2.26   1.75   1.02   0.41   0.19 
    NIM - fully tax equivalent ("FTE") 3.16   3.44   3.81   3.68   3.23 
    NIM - FTE, adjusted(2) 3.14   3.36   3.73   3.61   3.20 
    Return on average assets (annualized) ("ROAA") 0.86   1.01   1.23   0.70   1.08 
    Adjusted ROAA (annualized)(1) 0.84   1.00   1.27   1.34   1.11 
    Adjusted PTPP ROAA (annualized)(1) 1.24   1.52   1.75   1.72   1.53 
    Return on average stockholders’ equity (annualized) ("ROAE") 8.76   10.10   12.80   6.86   12.81 
    Adjusted ROAE (annualized)(1) 8.61   10.05   13.20   13.14   13.19 
    Adjusted PTPP ROAE (annualized)(1) 12.70   15.22   18.28   16.86   18.26 
    Book value per common share(3)$32.33  $32.25  $30.90  $29.58  $27.15 
    Tangible book value per common share (1)(3) 26.71   26.53   25.09   23.41   25.05 
    Adjusted tangible book value per common share(1) 31.66   31.03   30.29   29.13   29.92 
    Return on average tangible common equity (annualized) ("ROATCE")(1) 10.62%  12.34%  16.00%  8.03%  13.86%
    Adjusted return on average tangible common equity (annualized) ("adjusted ROATCE")(1) 10.44   12.29   16.50   15.38   14.27 
    Efficiency ratio(4) 64.76   60.69   58.32   60.97   59.89 
    Adjusted efficiency ratio(1) 61.17   58.64   53.06   52.16   54.10 
              
     (Dollars in thousands, except per share amounts)
    Common equity tier 1 to risk-weighted assets(5) 11.01%  11.08%  10.93%  10.51%  10.81%
    Tier 1 capital to risk-weighted assets(5) 11.19   11.27   11.12   10.70   10.95 
    Total capital to risk-weighted assets(5) 14.11   14.30   14.23   13.79   14.09 
    Tier 1 leverage ratio(5) 9.65   9.79   9.66   9.63   9.09 

    __________________________

    (1) Adjusted net income, adjusted PTPP earnings, adjusted diluted earnings per common share, adjusted ROAA, adjusted PTPP ROAA, adjusted ROAE, adjusted PTPP ROAE, tangible book value per common share, adjusted tangible book value per common share, ROATCE, adjusted ROATCE and adjusted 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 quarters ended June 30, 2023, March 31, 2023, December 31, 2022, and September 30, 2022, by removing the net purchase accounting 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) An increase in accumulated other comprehensive loss negatively impacted total stockholders' equity, tangible common equity, book value and tangible book value per common share primarily due to the movement of the short end of the yield curve and its impact on our investment portfolio.
    (4) Calculated by dividing noninterest expense by the sum of net interest income plus noninterest income.
    (5) June 30, 2023, 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
    (Unaudited)

     Six Months Ended June 30,
    (Dollars in thousands, except per share amounts) 2023   2022 
        
    Income statement and share amounts 
    Net interest income$152,438  $112,006 
    Provision for credit losses 10,503   3,125 
    Noninterest income 32,020   30,122 
    Noninterest expense 115,647   86,924 
    Income before income tax expense 58,308   52,079 
    Income tax expense 12,246   10,085 
    Net income$46,062  $41,994 
    Adjusted net income(1)$45,576  $43,083 
    Adjusted PTPP earnings(1) 68,196   56,582 
    Basic earnings per common share 1.50   1.77 
    Diluted earnings per common share 1.49   1.77 
    Adjusted diluted earnings per common share(1) 1.48   1.81 
    Dividends declared per common share 0.30   0.28 
    Weighted average common shares outstanding - basic 30,767,283   23,720,874 
    Weighted average common shares outstanding - diluted 30,881,072   23,780,939 
        
    Performance metrics   
    Yield on LHFI 6.11%  4.17%
    Yield on interest-earning assets 5.41   3.33 
    Cost of interest-bearing deposits 2.78   0.27 
    Cost of total deposits 2.01   0.18 
    NIM, FTE 3.29   3.04 
    NIM - FTE, adjusted(2) 3.25   2.98 
    ROAA 0.93   1.06 
    Adjusted ROAA(1) 0.92   1.09 
    Adjusted PTPP ROAA(1) 1.38   1.43 
    ROAE 9.42   12.19 
    Adjusted ROAE(1) 9.32   12.51 
    Adjusted PTPP ROAE(1) 13.94   16.42 
    ROATCE(1) 11.47   13.15 
    Adjusted ROATCE(1) 11.34   13.49 
    Efficiency ratio(3) 62.70   61.16 
    Adjusted efficiency ratio(1) 59.89   56.36 

    ____________________________
    (1) Adjusted net income, adjusted PTPP earnings, adjusted diluted earnings per common share, adjusted ROAA, adjusted PTPP ROAA, adjusted ROAE, adjusted PTPP ROAE, ROATCE, adjusted ROATCE and adjusted 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 six months ended June 30, 2023, by removing the net purchase accounting accretion from the net interest income. For the six months ended June 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) Calculated by dividing noninterest expense by the sum of net interest income plus noninterest income.

    Origin Bancorp, Inc.
    Consolidated Quarterly Statements of Income
    (Unaudited)

     Three Months Ended
     June 30,
    2023    		 March 31,
    2023    		 December 31,
    2022    		 September 30,
    2022    		 June 30,
    2022
              
    Interest and dividend income(Dollars in thousands, except per share amounts)
    Interest and fees on loans$115,442  $106,496  $99,178  $79,803  $55,986 
    Investment securities-taxable 8,303   8,161   7,765   7,801   7,116 
    Investment securities-nontaxable 1,283   1,410   2,128   2,151   1,493 
    Interest and dividend income on assets held in other financial institutions 7,286   4,074   2,225   1,482   1,193 
    Total interest and dividend income 132,314   120,141   111,296   91,237   65,788 
    Interest expense         
    Interest-bearing deposits 46,530   34,557   19,820   7,734   3,069 
    FHLB advances and other borrowings 7,951   5,880   4,208   2,717   1,392 
    Subordinated indebtedness 2,542   2,557   2,519   2,263   1,823 
    Total interest expense 57,023   42,994   26,547   12,714   6,284 
    Net interest income  75,291   77,147   84,749   78,523   59,504 
    Provision for credit losses 4,306   6,197   4,624   16,942   3,452 
    Net interest income after provision for credit losses 70,985   70,950   80,125   61,581   56,052 
    Noninterest income         
    Insurance commission and fee income 6,185   7,011   5,054   5,666   5,693 
    Service charges and fees 4,722   4,571   4,663   4,734   4,274 
    Mortgage banking revenue (loss) 1,402   1,781   1,201   (929)  2,354 
    Other fee income 970   942   1,132   1,162   638 
    Swap fee income 331   384   292   25   1 
    Gain on sales of securities, net —   144   —   1,664   — 
    Limited partnership investment income (loss) 231   66   (230)  112   282 
    Gain (loss) on sales and disposals of other assets, net (111)  63   34   70   (279)
    Other income 1,906   1,422   1,283   1,219   1,253 
    Total noninterest income 15,636   16,384   13,429   13,723   14,216 
    Noninterest expense         
    Salaries and employee benefits 34,533   33,731   33,339   31,834   27,310 
    Occupancy and equipment, net 6,578   6,503   5,863   5,399   4,514 
    Data processing 2,837   2,916   2,868   2,689   2,413 
    Intangible asset amortization 2,552   2,553   2,554   1,872   525 
    Office and operations 2,716   2,303   2,277   2,121   2,162 
    Professional services 1,557   1,525   1,145   1,188   420 
    Loan-related expenses 1,256   1,465   1,676   1,599   1,517 
    Advertising and marketing 1,469   1,456   1,505   1,196   859 
    Electronic banking 1,216   1,009   1,058   1,087   896 
    Franchise tax expense 897   975   1,017   957   838 
    Regulatory assessments 1,732   951   1,242   877   802 
    Communications 407   384   434   279   252 
    Merger-related expense —   —   1,179   3,614   807 
    Other expenses 1,137   989   1,097   1,529   835 
    Total noninterest expense 58,887   56,760   57,254   56,241   44,150 
    Income before income tax expense 27,734   30,574   36,300   19,063   26,118 
    Income tax expense 5,974   6,272   6,822   2,820   4,807 
    Net income$21,760  $24,302  $29,478  $16,243  $21,311 
    Basic earnings per common share$0.71  $0.79  $0.96  $0.57  $0.90 
    Diluted earnings per common share 0.70   0.79   0.95   0.57   0.90 
                        

    Origin Bancorp, Inc.
    Consolidated Balance Sheets
    (Unaudited)

    (Dollars in thousands)June 30,
    2023    		 March 31,
    2023    		 December 31,
    2022    		 September 30,
    2022    		 June 30,
    2022
    Assets         
    Cash and due from banks$127,576  $117,309  $150,180  $118,505  $123,499 
    Interest-bearing deposits in banks 338,414   707,802   208,792   181,965   200,421 
    Total cash and cash equivalents 465,990   825,111   358,972   300,470   323,920 
    Securities:         
    AFS 1,535,702   1,591,334   1,641,484   1,672,170   1,804,370 
    Held to maturity, net of allowance for credit losses 11,234   11,191   11,275   11,285   4,288 
    Securities carried at fair value through income 6,106   6,413   6,368   6,347   6,630 
    Total securities 1,553,042   1,608,938   1,659,127   1,689,802   1,815,288 
    Non-marketable equity securities held in other financial institutions 58,446   77,036   67,378   53,899   76,822 
    Loans held for sale 15,198   29,143   49,957   59,714   62,493 
    Loans 7,622,689   7,375,823   7,090,022   6,882,681   5,528,093 
    Less: ALCL 94,353   92,008   87,161   83,359   63,123 
    Loans, net of ALCL 7,528,336   7,283,815   7,002,861   6,799,322   5,464,970 
    Premises and equipment, net 105,501   104,047   100,201   99,291   81,950 
    Mortgage servicing rights 19,086   18,261   20,824   21,654   22,127 
    Cash surrender value of bank-owned life insurance 39,467   39,253   39,040   38,885   38,742 
    Goodwill 128,679   128,679   128,679   136,793   34,153 
    Other intangible assets, net 44,724   47,277   49,829   52,384   15,900 
    Accrued interest receivable and other assets 206,694   196,956   209,199   210,425   175,159 
    Total assets$10,165,163  $10,358,516  $9,686,067  $9,462,639  $8,111,524 
    Liabilities and Stockholders’ Equity         
    Noninterest-bearing deposits$2,123,699  $2,247,782  $2,482,475  $2,667,489  $2,214,919 
    Interest-bearing deposits 4,738,460   4,779,023   4,505,940   4,361,423   3,598,417 
    Time deposits 1,627,884   1,147,505   787,287   748,415   489,822 
    Total deposits 8,490,043   8,174,310   7,775,702   7,777,327   6,303,158 
    FHLB advances and other borrowings 342,861   875,502   639,230   450,456   894,581 
    Subordinated indebtedness 196,746   201,845   201,765   201,687   157,540 
    Accrued expenses and other liabilities 137,654   114,272   119,427   126,145   109,872 
    Total liabilities 9,167,304   9,365,929   8,736,124   8,555,615   7,465,151 
    Stockholders’ equity:         
    Common stock 154,331   153,904   153,733   153,309   119,038 
    Additional paid-in capital 524,302   522,124   520,669   518,376   244,368 
    Retained earnings 472,105   455,040   435,416   410,572   398,946 
    Accumulated other comprehensive loss (152,879)  (138,481)  (159,875)  (175,233)  (115,979)
    Total stockholders’ equity 997,859   992,587   949,943   907,024   646,373 
    Total liabilities and stockholders’ equity$10,165,163  $10,358,516  $9,686,067  $9,462,639  $8,111,524 
                        

    Origin Bancorp, Inc.
    Loan Data
    (Unaudited)

     At and For the Three Months Ended
     June 30,
    2023    		 March 31,
    2023    		 December 31,
    2022    		 September 30,
    2022    		 June 30,
    2022
              
    LHFI(Dollars in thousands)
    Owner occupied commercial real estate$915,861  $855,887  $843,006  $800,981  $609,358 
    Non-owner occupied commercial real estate 1,512,303   1,529,513   1,461,672   1,373,366   1,299,696 
    Construction/land/land development 1,022,239   948,626   945,625   853,311   635,556 
    Residential real estate 1,633,658   1,588,491   1,477,538   1,399,182   1,005,623 
    Total real estate loans 5,084,061   4,922,517   4,727,841   4,426,840   3,550,233 
    Commercial and industrial 1,977,028   2,091,093   2,051,161   1,967,037   1,430,239 
    Mortgage warehouse lines of credit 537,627   337,529   284,867   460,573   531,888 
    Consumer 23,973   24,684   26,153   28,231   15,733 
    Total LHFI 7,622,689   7,375,823   7,090,022   6,882,681   5,528,093 
    Less: allowance for loan credit losses ("ALCL") 94,353   92,008   87,161   83,359   63,123 
    LHFI, net$7,528,336  $7,283,815  $7,002,861  $6,799,322  $5,464,970 
              
    Nonperforming assets         
    Nonperforming LHFI         
    Commercial real estate$3,510  $3,100  $526  $431  $224 
    Construction/land/land development 183   226   270   366   373 
    Residential real estate 16,345   8,969   7,712   7,641   7,478 
    Commercial and industrial 13,480   4,730   1,383   5,134   5,930 
    Mortgage warehouse lines of credit —   —   —   385   — 
    Consumer 91   53   49   74   80 
    Total nonperforming LHFI 33,609   17,078   9,940   14,031   14,085 
    Nonperforming loans held for sale —   4,646   3,933   2,698   2,461 
    Total nonperforming loans 33,609   21,724   13,873   16,729   16,546 
    Repossessed assets 908   806   806   1,781   2,009 
    Total nonperforming assets$34,517  $22,530  $14,679  $18,510  $18,555 
    Classified assets$85,206  $86,975  $75,009  $71,562  $54,124 
    Past due LHFI(1) 19,836   11,498   10,932   10,866   7,186 
              
    Allowance for loan credit losses         
    Balance at beginning of period$92,008  $87,161  $83,359  $63,123  $62,173 
    Provision for loan credit losses 4,264   6,158   3,982   15,787   2,503 
    ALCL - BTH merger —   —   —   5,527   — 
    Loans charged off 2,751   2,293   2,537   1,628   2,192 
    Loan recoveries 832   982   2,357   550   639 
    Net charge-offs 1,919   1,311   180   1,078   1,553 
    Balance at end of period$94,353  $92,008  $87,161  $83,359  $63,123 
              
              
    Credit quality ratios(Dollars in thousands)
    Total nonperforming assets to total assets 0.34%  0.22%  0.15%  0.20%  0.23%
    Total nonperforming loans to total loans 0.44   0.29   0.19   0.24   0.30 
    Nonperforming LHFI to LHFI 0.44   0.23   0.14   0.20   0.25 
    Past due LHFI to LHFI 0.26   0.16   0.15   0.16   0.13 
    ALCL to nonperforming LHFI 280.74   538.75   876.87   594.11   448.16 
    ALCL to total LHFI 1.24   1.25   1.23   1.21   1.14 
    ALCL to total LHFI, adjusted(2) 1.32   1.30   1.28   1.29   1.25 
    Net charge-offs to total average LHFI (annualized) 0.10   0.07   0.01   0.07   0.12 

    ____________________________
    (1) Past due LHFI are defined as loans 30 days or more past due.
    (2) The ALCL to total LHFI, adjusted is calculated for all periods after June 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 periods at June 30, 2022, and prior, 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
    (Unaudited)

     Three Months Ended
     June 30, 2023 March 31, 2023 June 30, 2022
     Average Balance Yield/Rate Average Balance Yield/Rate Average Balance Yield/Rate
                
    Assets(Dollars in thousands)
    Commercial real estate$2,406,625  5.56% $2,342,545  5.37% $1,828,700  4.17%
    Construction/land/land development 972,032  6.70   974,914  6.48   587,872  4.52 
    Residential real estate 1,615,211  4.91   1,519,325  4.85   966,363  4.30 
    Commercial and industrial ("C&I") 2,059,285  7.59   2,070,356  7.42   1,398,802  4.26 
    Mortgage warehouse lines of credit 396,348  6.49   213,201  5.72   444,851  4.10 
    Consumer 24,812  7.26   26,017  8.10   15,979  6.03 
    LHFI 7,474,313  6.18   7,146,358  6.03   5,242,567  4.26 
    Loans held for sale 22,504  4.28   26,140  4.34   37,678  3.69 
    Loans receivable 7,496,817  6.18   7,172,498  6.02   5,280,245  4.25 
    Investment securities-taxable 1,371,361  2.43   1,395,857  2.37   1,610,400  1.77 
    Investment securities-nontaxable 220,345  2.33   238,145  2.40   258,178  2.32 
    Non-marketable equity securities held in other financial institutions 79,143  5.92   71,089  3.72   51,052  4.79 
    Interest-bearing balances due from banks 476,555  5.15   300,795  4.61   277,800  0.84 
    Total interest-earning assets 9,644,221  5.50   9,178,384  5.31   7,477,675  3.53 
    Noninterest-earning assets(1) 546,135     605,218     467,045   
    Total assets$10,190,356    $9,783,602    $7,944,720   
                
    Liabilities and Stockholders’ Equity          
    Liabilities           
    Interest-bearing liabilities           
    Savings and interest-bearing transaction accounts$4,740,963  2.90% $4,648,397  2.47% $3,767,275  0.26%
    Time deposits 1,378,659  3.56   976,905  2.58   503,325  0.49 
    Total interest-bearing deposits 6,119,622  3.05   5,625,302  2.49   4,270,600  0.29 
    FHLB advances and other borrowings 606,148  5.26   457,478  5.21   417,121  1.34 
    Subordinated indebtedness 200,160  5.09   201,809  5.14   157,517  4.64 
    Total interest-bearing liabilities 6,925,930  3.30   6,284,589  2.77   4,845,238  0.52 
    Noninterest-bearing liabilities           
    Noninterest-bearing deposits 2,139,973     2,392,176     2,288,732   
    Other liabilities(1) 127,630     130,793     143,427   
    Total liabilities 9,193,533     8,807,558     7,277,397   
    Stockholders’ Equity 996,823     976,044     667,323   
    Total liabilities and stockholders’ equity$10,190,356    $9,783,602    $7,944,720   
    Net interest spread  2.20%   2.54%   3.01%
    NIM  3.13    3.41    3.19 
    NIM - FTE(2)  3.16    3.44    3.23 
    NIM - FTE, adjusted(3)  3.14    3.36    3.23 

    ____________________________
    (1) Includes Government National Mortgage Association (“GNMA”) repurchase average balances of zero, $4.4 million, and $35.8 million for the three months ended June 30, 2023, March 31, 2023, and June 30, 2022, 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. During the quarter ended December 31, 2022, the Company entered into a contract to sell the servicing of these GNMA loans to a third party which closed during the quarter ended March 31, 2023.
    (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 quarters ended June 30, 2023, and March 31, 2023, by removing the net purchase accounting accretion from the net interest income. For the quarter ended June 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
    (Unaudited)

     At and For the Three Months Ended
     June 30,
    2023    		 March 31,
    2023    		 December 31,
    2022    		 September 30,
    2022    		 June 30,
    2022
              
     (Dollars in thousands, except per share amounts)
    Calculation of adjusted net income:         
    Net interest income after provision for credit losses$70,985  $70,950  $80,125  $61,581  $56,052 
    Add: CECL provision for non-PCD loans —   —   —   14,890   — 
    Adjusted net interest income after provision for credit losses 70,985   70,950   80,125   76,471   56,052 
              
    Total noninterest income$15,636  $16,384  $13,429  $13,723  $14,216 
    Less: GNMA MSR impairment —   —   —   (1,950)  — 
    Less: gain on sales of securities, net —   144   —   1,664   — 
    Less: gain on sub-debt repurchase 471   —   —   —   — 
    Adjusted total noninterest income 15,165   16,240   13,429   14,009   14,216 
              
    Total noninterest expense$58,887  $56,760  $57,254  $56,241  $44,150 
    Less: merger-related expenses —   —   1,179   3,614   807 
    Adjusted total noninterest expense 58,887   56,760   56,075   52,627   43,343 
              
    Income tax expense$5,974  $6,272  $6,822  $2,820  $4,807 
    Add: income tax expense on adjustment items (99)  (30)  248   3,946   169 
    Adjusted income tax expense 5,875   6,242   7,070   6,766   4,976 
              
    Net income$21,760  $24,302  $29,478  $16,243  $21,311 
    Adjusted net income$21,388  $24,188  $30,409  $31,087  $21,949 
              
    Calculation of adjusted PTPP earnings:         
    Provision for credit losses$4,306  $6,197  $4,624  $16,942  $3,452 
    Less: CECL provision for non-PCD loans —   —   —   14,890   — 
    Adjusted provision for credit losses$4,306  $6,197  $4,624  $2,052  $3,452 
              
    Adjusted net income$21,388  $24,188  $30,409  $31,087  $21,949 
    Add: adjusted provision for credit losses 4,306   6,197   4,624   2,052   3,452 
    Add: adjusted income tax expense 5,875   6,242   7,070   6,766   4,976 
    Adjusted PTPP Earnings$31,569  $36,627  $42,103  $39,905  $30,377 
              
    Calculation of adjusted dilutive EPS:         
    Numerator:         
    Adjusted net income$21,388  $24,188  $30,409  $31,087  $21,949 
    Denominator:         
    Weighted average diluted common shares outstanding 30,872,834   30,882,156   30,867,511   28,481,619   23,788,164 
              
    Diluted earnings per share$0.70  $0.79  $0.95  $0.57  $0.90 
    Adjusted diluted earnings per share 0.69   0.78   0.99   1.09   0.92 
              
    Calculation of adjusted ROAA and adjusted ROAE:        
    Adjusted net income$21,388  $24,188  $30,409  $31,087  $21,949 
    Divided by number of days in the quarter 91   90   92   92   91 
    Multiplied by number of days in the year 365   365   365   365   365 
    Annualized adjusted net income$85,787  $98,096  $120,644  $123,334  $88,037 
              
    Divided by total average assets 10,190,356   9,783,602   9,530,543   9,202,421   7,944,720 
    ROAA (annualized) 0.86%  1.01%  1.23%  0.70%  1.08%
    Adjusted ROAA (annualized) 0.84   1.00   1.27   1.34   1.11 
              
    Divided by total average stockholders' equity$996,823  $976,044  $913,850  $938,752  $667,323 
    ROAE (annualized) 8.76%  10.10%  12.80%  6.86%  12.81%
    Adjusted ROAE (annualized) 8.61   10.05   13.20   13.14   13.19 
              
    Calculation of adjusted PTPP ROAA and adjusted PTPP ROAE:      
    Adjusted PTPP earnings$31,569  $36,627  $42,103  $39,905  $30,377 
    Divided by number of days in the quarter 91   90   92   92   91 
    Multiplied by the number of days in the year 365   365   365   365   365 
    Adjusted PTPP earnings, annualized$126,623  $148,543  $167,039  $158,319  $121,842 
              
    Divided by total average assets$10,190,356  $9,783,602  $9,530,543  $9,202,421  $7,944,720 
    Adjusted PTPP ROAA(annualized) 1.24%  1.52%  1.75%  1.72%  1.53%
              
    Divided by total average stockholders' equity$996,823  $976,044  $913,850  $938,752  $667,323 
    Adjusted PTPP ROAE (annualized) 12.70%  15.22%  18.28%  16.86%  18.26%
    Calculation of tangible common equity to tangible common assets, book value per common share and adjusted tangible book value per common share:  
    Total assets$10,165,163  $10,358,516  $9,686,067  $9,462,639  $8,111,524 
    Less: goodwill 128,679   128,679   128,679   136,793   34,153 
    Less: other intangible assets, net 44,724   47,277   49,829   52,384   15,900 
    Tangible assets 9,991,760   10,182,560   9,507,559   9,273,462   8,061,471 
              
    Total common stockholders’ equity$997,859  $992,587  $949,943  $907,024  $646,373 
    Less: goodwill 128,679   128,679   128,679   136,793   34,153 
    Less: other intangible assets, net 44,724   47,277   49,829   52,384   15,900 
    Tangible common equity 824,456   816,631   771,435   717,847   596,320 
    Less: accumulated other comprehensive loss (152,879)  (138,481)  (159,875)  (175,233)  (115,979)
    Adjusted tangible common equity 977,335   955,112   931,310   893,080   712,299 
    Divided by common shares outstanding at the end of the period 30,866,205   30,780,853   30,746,600   30,661,734   23,807,677 
    Book value per common share$32.33  $32.25  $30.90  $29.58  $27.15 
    Tangible book value per common share 26.71   26.53   25.09   23.41   25.05 
    Adjusted tangible book value per common share 31.66   31.03   30.29   29.13   29.92 
    Tangible common equity to tangible assets 8.25%  8.02%  8.11%  7.74%  7.40%
              
    Calculation of ROATCE and adjusted ROATCE:        
    Net income$21,760  $24,302  $29,478  $16,243  $21,311 
    Divided by number of days in the quarter 91   90   92   92   91 
    Multiplied by number of days in the year 365   365   365   365   365 
    Annualized net income$87,279  $98,558  $116,951  $64,442  $85,478 
              
    Adjusted net income$21,388  $24,188  $30,409  $31,087  $21,949 
    Divided by number of days in the quarter 91   90   92   92   91 
    Multiplied by number of days in the year 365   365   365   365   365 
    Annualized adjusted net income$85,787  $98,096  $120,644  $123,334  $88,037 
              
    Total average common stockholders’ equity$996,823  $976,044  $913,850  $938,752  $667,323 
    Less: average goodwill 128,679   128,679   131,302   95,696   34,153 
    Less: average other intangible assets, net 46,379   48,950   51,495   40,918   16,242 
    Average tangible common equity 821,765   798,415   731,053   802,138   616,928 
              
    ROATCE 10.62%  12.34%  16.00%  8.03%  13.86%
    Adjusted ROATCE 10.44   12.29   16.50   15.38   14.27 
    Calculation of adjusted efficiency ratio:         
    Total noninterest expense$58,887  $56,760  $57,254  $56,241  $44,150 
    Less: insurance and mortgage noninterest expense 9,156   8,033   8,031   8,479   8,397 
    Less: merger-related expenses —   —   1,179   3,614   807 
    Adjusted total noninterest expense 49,731   48,727   48,044   44,148   34,946 
              
    Net interest income$75,291  $77,147  $84,749  $78,523  $59,504 
    Less: insurance and mortgage net interest income 1,574   1,493   1,376   1,208   1,082 
    Add: Total noninterest income 15,636   16,384   13,429   13,723   14,216 
    Less: insurance and mortgage noninterest income 7,587   8,792   6,255   4,737   8,047 
    Less: gain on sale of securities, net —   144   —   1,664   — 
    Less: gain on sub-debt repurchase 471   —   —   —   — 
    Adjusted total revenue 81,295   83,102   90,547   84,637   64,591 
              
    Efficiency ratio 64.76%  60.69%  58.32%  60.97%  59.89%
    Adjusted efficiency ratio 61.17   58.64   53.06   52.16   54.10 
                        


     Six Months Ended June 30,
      2023   2022 
        
     (Dollars in thousands, except per share amounts)
    Calculation of adjusted net income:   
    Net interest income after provision for credit losses$141,935  $108,881 
        
    Total noninterest income$32,020  $30,122 
    Less: gain on sales of securities, net 144   — 
    Less: gain on sub-debt repurchase 471   — 
    Adjusted total noninterest income 31,405   30,122 
        
    Total noninterest expense$115,647  $86,924 
    Less: merger-related expense —   1,378 
    Adjusted total noninterest expense 115,647   85,546 
        
    Income tax expense$12,246  $10,085 
    Add: income tax expense on adjustment items (129)  289 
    Adjusted income tax expense 12,117   10,374 
        
    Net Income$46,062  $41,994 
    Adjusted net income$45,576  $43,083 
        
    Calculation of adjusted PTPP earnings:   
    Provision for credit losses$10,503  $3,125 
        
    Adjusted net income$45,576  $43,083 
    Add: provision for credit losses 10,503   3,125 
    Add: adjusted income tax expense 12,117   10,374 
    Adjusted PTPP earnings$68,196  $56,582 
        
    Calculation of adjusted dilutive EPS:   
    Numerator:   
    Adjusted net income$45,576  $43,083 
    Denominator:   
    Weighted average diluted common shares outstanding 30,881,072   23,780,939 
    Diluted earnings per share$1.49  $1.77 
    Adjusted diluted earnings per share 1.48   1.81 
    Calculation of adjusted ROAA and adjusted ROAE:    
    Adjusted net income$45,576  $43,083 
    Divided by the year-to-date number of days 181   181 
    Multiplied by number of days in the year 365   365 
    Annualized adjusted net income$91,907  $86,880 
        
    Divided by total average assets$9,988,103  $7,994,705 
    ROAA (annualized) 0.93%  1.06%
    Adjusted ROAA (annualized) 0.92   1.09 
        
    Divided by total average stockholders' equity$986,491  $694,761 
    ROAE (annualized) 9.42%  12.19%
    Adjusted ROAE (annualized) 9.32   12.51 
        
    Calculation of adjusted PTPP ROAA and adjusted PTPP ROAE:   
    Adjusted PTPP Earnings$68,196  $56,582 
    Divided by the year-to-date number of days 181   181 
    Multiplied by number of days in the year 365   365 
    Annualized adjusted PTPP Earnings$137,522  $114,102 
        
    Divided by total average assets$9,988,103  $7,994,705 
    Adjusted PTPP ROAA (annualized) 1.38%  1.43%
        
    Divided by total average stockholders' equity$986,491  $694,761 
    Adjusted PTPP ROAE (annualized) 13.94%  16.42%
    Calculation of ROATCE and adjusted ROATCE:  
    Net income$46,062  $41,994 
    Divided by the year-to-date number of days 181   181 
    Multiplied by number of days in the year 365   365 
    Annualized net income$92,887  $84,684 
        
    Adjusted net income$45,576  $43,083 
    Divided by the year-to-date number of days 181   181 
    Multiplied by number of days in the year 365   365 
    Annualized adjusted net income$91,907  $86,880 
        
    Total average common stockholders’ equity$986,491  $694,761 
    Less: average goodwill 128,679   34,259 
    Less: average other intangible assets, net 47,657   16,507 
    Average tangible common equity 810,155   643,995 
        
    ROATCE 11.47%  13.15%
    Adjusted ROATCE 11.34   13.49 
        
    Calculation of adjusted efficiency ratio:    
    Total noninterest expense$115,647  $86,924 
    Less: insurance and mortgage noninterest expense 17,189   17,023 
    Less: merger-related expenses —   1,378 
    Adjusted total noninterest expense 98,458   68,523 
        
    Net interest income$152,438  $112,006 
    Less: insurance and mortgage net interest income 3,067   1,957 
    Add: total noninterest income 32,020   30,122 
    Less: insurance and mortgage noninterest income 16,379   18,599 
    Less: gain on sale of securities, net 144   — 
    Less: gain on sub-debt repurchase 471   — 
    Adjusted total revenue 164,397   121,572 
        
    Efficiency ratio 62.70%  61.16%
    Adjusted efficiency ratio 59.89   56.36 
            

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